For five decades, Thailand was the world’s leading rice exporter. In past two years, however, since the implementation of a costly rice subsidy program, the country has incurred a 4.4 billion loss in rice exports, thereby opening a gap that Vietnamese and Indian exporters have been able to exploit.
At the end of 2011, as elections approached, Thai President Yingluck Shinawatra decided to implement a rice subsidy benefitting four million farmers. By buying their rice at a price 50% higher than the world market price and thus increasing the farmers’ revenue, he ensured himself heightened popularity with the people.
The original idea, according to the Wall Street Journal, was for the plan to “…first function as a welfare handout by replacing private rice dealers with inflated government payments to farmers. Then, in phase two, the world’s top rice exporter would drive up global rice prices by withholding its crops from the market. Once prices rose high enough, Bangkok could recoup the investment by selling off its stockpiles.”
Unsurprisingly, this attempt to manipulate market prices failed as exporters from India and Vietnam rushed in to increase their share of rice exports and boost their own productivity.
In 2012, market prices remained low and Thailand lost its position as leading rice exporter to India, as its exports dropped by 37%.
Mid-June, the government announced a reduction of the rice subsidy from $485 per ton to $388 per ton, though the price still remained higher than the world market price. This 20% price reduction angered peasants, who constitute a majority of the governing party’s traditional electorate.
Monday July 1st, the government decided to reestablish the price of the subsidy to its initial level and reexamine the question in order to placate peasants who withdrew their demonstration threats.
The loss in Thai rice exports due to the subsidy can be evaluated at 35 percent between 2011 and 2013. In 2012 alone, Thai arrived in third position, exporting 6.9 million tons of rice versus 9.5 million for India and 7.8 million for Vietnam. The ill-planned subsidy program has been disastrous for Thailand so far, and promises to deepen government debt if the Thai government does not take action.
In the meantime, the government must quickly find a way to deal with the 17 million tons of Thai rice amassed in stockpiles. With little time left before the excess rice goes bad in one to two years, the government might already have to bring down prices in order to sell its surpluses, virtually guaranteeing that its investments will never be returned.
– Lauren Yeh
Sources: WSJ, Le Monde, Global Voices Online
Photo: Rice Wisdom
Righting the Wrongs of Malnutrition
Think of one child. This child could be your brother, sister, son, or daughter. This person is someone you love and care for dearly. Now imagine watching this child go through the stages of acute malnutrition. As lack of food and nutrients wear on their body, their metabolism begins to slow. Their body slowly eats away at their muscle tissue and their kidneys begin to fail. The suffering of this loved one is something you can’t stop, as there is no food to give them. Their body is just shutting down.
This may sound like a foreign scenario to those able to provide daily meals to their loved ones, but 55 million children in the world today suffer from these serious consequences of malnutrition. These children are susceptible to disease, mental and physical impairments, and possibly death.
For 30 years, Action Against Hunger/ACF International has fought to help these children. An international non-profit organization, ACF has 4,600 health professionals in over 40 countries working to provide nourishment, clean drinking water, and sustainable living conditions to those suffering from malnutrition.
ACF International works to provide both an immediate and long-term impact. Children suffering from malnutrition need assistance now; however, ACF strives to not only get these children healthy but to keep them healthy for good. Accordingly, ACF accepts donations and sends supplies to affected areas, while working to create a long-term presence in international communities through programs and leadership.
The support for this cause remains strong. Sponsor partners, such as Weight Watchers, Pentair, and North American Power, offer unique and relevant ways in which they contribute to eradicating malnutrition. For example, Weight Watchers and Pentair have dedicated over two million dollars each to the cause, while North American Power donates a dollar for every electric bill paid.
With help from these partners and others, Action Against Hunger/ACF International continues to change the world. In 2012, 157,000 children were saved from deadly hunger. Additionally, 550,000 farmers were equipped with the tools necessary to provide their communities with food and economic growth. Progress is being made, but too many children remain hungry.
For more information on how you can become involved with Action Against Hunger and ACF International, visit www.actionagainsthunger.org. Put yourself in their shoes. Make a difference.
– William Norris
Sources: Action against Hunger, World Food Programme
Photo: African Starving Children
Top 5 Countries to Visit in Africa
Though African countries may not be the most traditional tourist destinations for the average Westerner, the World Economic Forum’s Travel and Tourism Competitiveness Report 2013 ranked five African countries in the world’s top twenty-five most welcoming places to travel. This report, which evaluates destinations according to their “attractiveness and competitiveness,” also indicated that several African countries are frequent destinations for business trip extensions. While these measures cannot wholly encompass the subjective factors that draw people to specific tourist destinations, the WEF’s report highlights the burgeoning role of African countries in the global economy and encourages people to travel to Africa for their next trip abroad. Here are the top 5 countries to visit in Africa:
1. Seychelles – Ranked as the top country for travel and tourism competitiveness in Africa, the Republic of Seychelles is a group of 115 islands located off the east coast of Africa. The islands’ scenery is replete with luxury hotels, sandy beaches, and palm trees, vastly different from the diverse climates of continental Africa.
2. Mauritius – Mauritius came in second on the WEF’s list of Africa’s most competitive travel destinations, ranked highly because of its high safety and security ratings and desirable island environment. Located to the east of Madagascar, Mauritius is a popular destination for golf and deep sea fishing and is home to countless resorts and spas.
3. South Africa – South Africa has become an increasingly popular tourist destination due to its historical significance, outdoor activities, and cultural opportunities. Listed as the third most competitive travel destination in Africa by the WEF, South Africa’s visitors embrace the country’s climactic and cultural diversity.
4. Morocco – Ranked third in the world on the WEF’s list of the most welcoming nations for tourists, Morocco is home to many sites of cultural and historical significance. Visitors flock to the country in pursuit of its grand architecture, exciting bazaars and monumental cities such as Casablanca.
5. Rwanda – Placed third on the WEF’s list of the African countries most recommended for business trip extensions, Rwanda is finally moving past the days of its 1994 genocide to become a popular travel destination. The country boasts mountainous scenery, hidden beaches, and extensive rainforests, a prime destination for visitors wishing to experience Africa’s beauty without traveling to its more frequented sites.
– Katie Bandera
Sources: How We Made It In Africa, WEF, Lonely Planet
Photo: Vacation Rental Times
Spotlight: Giving Children Hope
Giving Children Hope (GCHope) is a grassroots organization that strives to do just what its name suggests: focus on the social, economic and health needs of impoverished children around the world. GCHope aims to achieve this through disaster relief, health and community development, and vocational training in developing countries.
President and CEO John Ditty and his wife developed the idea of GCHope in 1993 after deciding to make it their lives’ aims to help the world’s disadvantaged youth, both at home in the United States and internationally. Though the program started by merely delivering medical supplies to regions of developing countries with the least access to health care, the Dittys soon realized that they needed to do more.
As they recognized that children were necessarily a part of families and wider communities, the Dittys expanded GCHope to include community medical clinics and micro-enterprises, immediate disaster relief, and increased family health care coverage in some of the world’s most disadvantaged regions.
GCHope doesn’t take its mission statement lightly, and has been working tirelessly for the last 20 years to make a difference in children’s lives in every corner of the globe. In 2008, GCHope led an initiative to send cholera medicines to Zimbabwe after an outbreak.
One year later, in 2009, the group partnered with Not For Sale to establish clinic in Northern Thailand for children rescued from slavery. In order to raise funds for the latter project, GCHope teamed up with the Not For Sale campaign, International Justice Mission, and Free the Slaves to produce a documentary called Call + Response that supported human rights activism against human trafficking.
In 2010, GCHope was one of the first to respond to the Haiti earthquake and begin collecting donated supplies.
GCHope believes that it can empower “disenfranchised communities” and elevate them out of poverty by instilling hope and leadership capabilities into society’s youngest members. When the children in a community are healthy, well educated, hopeful and stable, the cycle of poverty is more likely to be broken.
If children are truly the hope of the future, organizations like GCHope may be the key to unlocking the children’s potential.
– Alexandra Bruschi
Source: Call and Response, Giving Children Hope, OC Register
Photo: WFP
How Private Academies in India Help Reduce Poverty
Being one of the world’s most populated countries, India’s young workforce (age 25 and younger) is roughly double the population of the entire United States. While hundreds of millions of workers can be seen as an incredible resource, it also presents a pressing dilemma. India currently faces a huge problem of unemployment, which becomes more imminent as the young adult population rises.
In the next nine years, India must train 500 million people. To solve this issue, the Indian government has made practical job training a priority. Training centers such as Gras Learning Academy are becoming more popular as the demand for specific skills increases. Since the education offered at institutions such as Gras is so specific, it has a higher job placement rate. Due to this trend, Gras and other private academies are growing in number all over India.
However, Gras not only offers classes in specialized skills such as cellphone repair and computer networking. Academies like Gras offer classes in basic life skills for students from impoverished areas who may not have had the time or ability to attend secondary school. These basic life skills include the importance of punctuality, speaking professionally with managers, and presenting yourself in a well-kept manner.
In many cases, the needs of struggling economies are overshadowed by prescriptive solutions that are often based in theory. However, private academies in India have addressed poverty very practically by understanding the setbacks of the students, the demands of the workforce, and building a bridge from one to the other.
– Pete Grapentien
Source : The New York Times, The Wall Street Journal
The Thai Government’s Costly Rice Subsidy
For five decades, Thailand was the world’s leading rice exporter. In past two years, however, since the implementation of a costly rice subsidy program, the country has incurred a 4.4 billion loss in rice exports, thereby opening a gap that Vietnamese and Indian exporters have been able to exploit.
At the end of 2011, as elections approached, Thai President Yingluck Shinawatra decided to implement a rice subsidy benefitting four million farmers. By buying their rice at a price 50% higher than the world market price and thus increasing the farmers’ revenue, he ensured himself heightened popularity with the people.
The original idea, according to the Wall Street Journal, was for the plan to “…first function as a welfare handout by replacing private rice dealers with inflated government payments to farmers. Then, in phase two, the world’s top rice exporter would drive up global rice prices by withholding its crops from the market. Once prices rose high enough, Bangkok could recoup the investment by selling off its stockpiles.”
Unsurprisingly, this attempt to manipulate market prices failed as exporters from India and Vietnam rushed in to increase their share of rice exports and boost their own productivity.
In 2012, market prices remained low and Thailand lost its position as leading rice exporter to India, as its exports dropped by 37%.
Mid-June, the government announced a reduction of the rice subsidy from $485 per ton to $388 per ton, though the price still remained higher than the world market price. This 20% price reduction angered peasants, who constitute a majority of the governing party’s traditional electorate.
Monday July 1st, the government decided to reestablish the price of the subsidy to its initial level and reexamine the question in order to placate peasants who withdrew their demonstration threats.
The loss in Thai rice exports due to the subsidy can be evaluated at 35 percent between 2011 and 2013. In 2012 alone, Thai arrived in third position, exporting 6.9 million tons of rice versus 9.5 million for India and 7.8 million for Vietnam. The ill-planned subsidy program has been disastrous for Thailand so far, and promises to deepen government debt if the Thai government does not take action.
In the meantime, the government must quickly find a way to deal with the 17 million tons of Thai rice amassed in stockpiles. With little time left before the excess rice goes bad in one to two years, the government might already have to bring down prices in order to sell its surpluses, virtually guaranteeing that its investments will never be returned.
– Lauren Yeh
Sources: WSJ, Le Monde, Global Voices Online
Photo: Rice Wisdom
Economic and Social Council Focuses on Science
The Economic and Social Council (ECOSOC) kicked off its annual forum at the start of this month, focusing on the importance of science and innovation to achieve development goals. The top UN officials, who were in attendance at the forum, stressed that technology and science are crucial for tackling todays global challenges, from reducing poverty to ensuring sustainable development. Some of the key speakers on the first day of this forum were ECOSOC president, Ambassador Nestor Osorio of Columbia, Secretary-General Ban Ki-moon, and President of the UN General Assembly, Vuk Jeremic.
“The steadily increasing pace of technological innovation makes ours an era of a long profound change…So many fields of human endeavor – medicine, energy, agriculture – have made significant, even drastic, improvements in just a few generations. Yet in the field of development, despite our progress, there are still over one billion people living in extreme poverty. And tonight many, if not most, will go to bed hungry,” said Osorio.
Secretary-General Ban Ki-moon stressed the importance of science and innovation as the Millennium Development Goals (MDGs) come to a close in 2015. While some of the MDGs have already been met, there are several that need extra attention if the international community wishes to achieve them by 2015. “We must intensify out efforts, particularly to tackle the disparities across regions and between social groups…the future we want is within reach. Let us innovate together to achieve it,” stated Ki-moon.
Finally, Vuk Jeremic, President of the UN General Assembly, spoke about the need for a renewed commitment from Member States to face these development challenges together. He urged for a revitalized General Assembly and a renewed ECOSOC to lead the UN in setting the world on a more equitable, prosperous and environmentally sound path.
The ECOSOC forum will last for 26 days, but this assembly on innovation and science will last for four, including several more speeches from world leaders as well as collaboration meetings between several international institutions.
– Catherine Ulrich
Source: UN News, UNOG
Photo: Ventures
The Fight against Schistosomiasis
The Bill and Melinda Gates Foundation contributed $3.4 million to help in the fight against schistosomiasis, a tropical debilitating disease that has infected over 200 million people all over the world. The University of Georgia Research Foundation received the Foundation’s grant and the Director of UGA’s Center for Tropical and Emerging Global Diseases remarked that the project has seen much success in reducing infections as continuous work is put towards eliminating the disease once and for all.
The Center for Tropical and Emerging Global Diseases was established to foster research, education and services related to tropical and emerging infectious diseases and this grant by the Bill and Melinda Gates Foundation will help the Center in its mission particularly as it relates to the fight against schistosomiasis, a disease caused by parasitic worms and second only to malaria as the most devastating parasitic disease.
Schistosomiasis is contracted when a person’s skin comes in contact with water that has been contaminated with the disease. Contamination occurs when cercariae, the infectious form of the parasite, emerges from certain types of freshwater snails.
The fight against schistosomiasis is extremely important in combating one of the most debilitating diseases in the world and thanks to the Bill and Melinda Gates Foundation, $3.4 million will go to that cause.
– Taheera S. Randolph
Source: GPB News, Centers for Disease Control and Prevention, UGA Center for Tropical and Emerging Global Diseases
“Nutrition for Growth” and Hunger Alleviation
With last month’s G8 Summit, and the ‘Nutrition for Growth’ summit hosted in London before that, a lot of the focus has been on large amounts of international aid earmarked to combat global hunger and malnutrition.
Small-scale, localized projects play just as large a role as international aid efforts, and possibly more beneficial. The original Green Revolution increased crop yields dramatically, but at no small environmental cost. If this large-scale intervention played its role, multiple small-scale projects could produce the same results.
One such project fighting food insecurity is the Soil, Food, and Healthy Communities (SFHC) program in Malawi. This program began ten years ago with efforts to educate local farmers and diversify their crops. The original aim of the project was to improve the health, food security, and soil fertility of poor households in Northern Malawi. This goal was additionally tied into participatory research, testing legume systems and looking at more sustainable approaches to achieving greater food security.
By introducing a variety of different legume options, as well as agricultural techniques, the quality and quantity of food can both be increased, as well as improving soil quality through organic input. This Ecohealth approach, focusing on the health of the entire system and humans’ interaction with it, can be simultaneously beneficial to the communities’ short-term needs, as well as allowing for longer-term sustainability.
Ten years on from the initiation of the project there have been many encouraging signs of success. The introduction of semi-perennial rotation systems, and the diversification of crops, led in some cases to annual return yields double that of the previous system. In addition to these straightforward agricultural benefits, a further goal of SFHC was to educate the local populace regarding nutrition.
The introduction of diverse legumes into the crop rotation system improves soil quality and yield, and also diversifies the local diet. This additional food production can then directly influence the health of the children of the community. As a result of this project, child malnutrition has been reduced by two-thirds over the past ten years in a hospital catchment area serving about 70,000 people and covering 600-square kilometers. This is largely due to farmers now producing soybeans, groundnuts, and other legumes, and incorporating them into the local diet.
– David Wilson
Sources: The Guardian, Winnipeg Free Press
Importance of Small-Scale Farmers
With a rising population and a high demand on food production, our world is looking for solutions to increase food production. Small-scale farmers play an important role in the dilemma of feeding our world. Currently small-scale farmers produce the majority of food for the developing world.
There are millions of success stories about these farmers reaching out and sustaining whole communities. For example, in Brazil there is a food security policy known as Zero Hunger. In this program the government buys products directly from small-scale farmers and distributes the products to day-care centers, hospitals and community associations.
However, the UN and FAO in a report, Smallholder Integration in Changing Food Markets, highlight the challenges still ahead for small-scale farmers. The report calls attention to the importance of policymakers in the growth of small-scale farmers. The report focuses on the fact that most of these farmers are removed from the market. It calls for policymakers to create greater market integration and more inclusive value chains. The report concludes that by doing these things, these farmers will be more inclined to adopt new technologies to grow productivity.
The report stresses the two main ways to link small-scale farmers to the market are to provide better access to credit and insurance, and to strengthen the links between farmers and buyers. The report discusses the fact that, in many countries, transportation is too costly, infrastructure is inadequate, and the cost of storage is too high. These farmers are unlikely to risk producing a surplus of products if they think that their products would go to waste.
“High levels of price, production risks and uncertainty, and limited access to tools to manage them deter investment in more productive new technologies that would enable smallholders to produce surpluses for sale in markets,” according to the report.
Policymakers must focus on the inclusion of small-scale farmers into the market. They are important to the future of our world and must be supported.
– Catherine Ulrich
Sources: FAO, International Institute for Environment and Development, UN News
Corporate Philanthropy at the Highest Level with Good360
For most people, shopping at a giant retail chain now comes with a high level of expectation. People want their favorite products on the shelves now, in adequate quantities. Rarely does one ever stop to ponder just how the most successful retail and grocery chains move such a large amount of varied product so quickly. The logistical processes involved are so fine-tuned and fast that the systems themselves bear admiration. What if those logistical success strategies worked elsewhere?
Nonprofit organizations the world over sometimes struggle getting provisions to those who need it most for a myriad of reasons; not enough donations, not enough people, slow legal channels. The list could presumably stretch on with no end. One nonprofit group has already solved the problem by employing much the same techniques retailers use to rocket products from the warehouses to the store shelves, and they’re doing it with the help and cooperation of private enterprise.
Good360, formerly Gifts In Kind, began in 1983 by accepting a donation of office supplies worth over $11 million from the company 3M and has never looked back. The nonprofit accepts corporate donations like this from a multitude of businesses who need to clean up their balance sheets by unloading unsold assets and backed up inventory. Transferring such donations to Good360, those companies also build a reputation for corporate philanthropy. Good360 then distributes these goods to a network of charities and other nonprofit groups from their own warehouses. Donations get to where they are most needed even faster. The added bonus is also a boon to the environment because the practice doesn’t involve landfills whatsoever.
Continually highly ranked by Forbes as an efficient charity, Good360 works with many top corporations. Most recently, as of October 2012, they were ranked 29 out of 100 charities by the publication. Good360 depends on $306 million in private support, while generating $311 million in total revenue, giving 99 percent of that to charity. They’re totally dependent on their donors and are 100 percent effective in fundraising.
According to Good360’s website, the firm works only on 1.8 percent of the total value of products donated, which is astounding considering that they’re able to expedite it to charities almost as fast as new products are delivered to stores. The process is so environmentally conscious and efficient that employees from larger, for-profit firms are allowed to learn from Good360.
In the last 14 years they’ve grown exponentially, forging corporate working relationships with well over 40 percent of Fortune 500 companies. They’ve gone to great lengths to increase corporate philanthropy and facilitate international seminars on it. Since 2009, Good360 has taken another technological step forward by joining forces with the American Trucking Association so that trucking organizations can donate transportation to aid shipping in the name of charity. Strategically, the move is brilliant because it strengthens an already strong, logistical network and has forged new working relationships.
In July 2013, Good360 named Chris Blake their new Executive Vice President (EVP). He was the former President of K.I.D.S., Kids in Distressed Situations, another nonprofit. He brings a career of expertise of successful fundraising in the nonprofit sector that meshes perfectly with Good360. Blake was elemental in fostering working relationships between community groups and major companies for K.I.D.S. This new hire increases not only business and operational knowledge but leadership capacity as well.
Good360 has done nothing but grow and improve since its inception. The innovative strides it has made are undeniable. Nothing less than success can be expected of their organization when faced with high demand for products globally. Good360 is a great example of what can be achieved using strong logistics for giving rather than buying and supports economic prosperity for all involved.
– David Smith
Sources: Good360, Forbes Top 100 Charities, Chris Blake Joins Good360
Photo: Photopin