In a time of unprecedented wealth, poverty still plagues the planet. Despite enormous strides in health care, education and total wealth over the last millennium, modern society is as unequal as feudal Europe. As transnational companies (TNCs) and the super-rich accrue vast fortunes, in 2022, 648 million people lived in extreme poverty, surviving on less than $2.15 per day. Without fair taxes, global inequality increases and poverty progress slows.
Growing Inequality
Between 1990 and 2019, the global extreme poverty rate shrank from 37.8% to 8.4%. However, in the wake of the global pandemic, progress toward ending poverty reversed for the first time in 25 years. In 2020, global extreme poverty rates rose to 9.3%. Since 2020, the wealthiest 1% of people have accumulated 63% of all newly created wealth.
Further, as billionaire fortunes raise a cumulative interest of $2.7 billion per day, the last year saw inflation rates surpass salary growth for 1.7 billion workers. Only half of all billionaire fortunes are subject to inheritance tax, with “tax havens” holding “8% of the world’s household financial wealth,” Oxfam highlights. Additionally, major “food and energy companies more than doubled their profits in 2022,” during the same year that saw even the developed world choose between a full stomach and a warm home, Oxfam reports.
The 5% Tax
In January 2023, Oxfam published a paper titled “Survival of the Richest,” which highlights the broadening wealth gap between the rich and the deprived and suggests that the world reconsiders the meaning of fair taxes. The crux of this paper is a simple idea. Oxfam proposes that a 5% tax apply unilaterally to all multi-millionaires and billionaires. A humble 5% tax would accumulate $1.7 trillion per annum: sufficient funds to implement a comprehensive strategy to eliminate world hunger and end poverty for 2 billion people.
Changing Attitudes
Amid escalating inequality, attitudes regarding what constitutes fair taxes are changing. For the first time in history, most Americans agree with the statement: “the government should redistribute wealth by heavy taxes on the rich.” About 80% of Indians and 85% of Brazilians also favor higher, fair taxes for the super-rich.
In October 2022, proposed tax cuts for large corporations in the U.K. led to a “U-turn” in the prime minister’s plans and even her resignation. In the same year, more than 100 millionaires signed a charter demanding higher tax burdens on the rich as a way to resolve global poverty. Even those who benefit from the current economic system agree that it causes unfair economic inequality.
Tax expert Chenai C. Mukumba says in her foreword introducing the Oxfam paper, “Inequality is one of the most important issues today and, left unabated, has the potential to exacerbate many of the social cleavages that exist within our society.”
She says further, “Addressing it, therefore, should be at the forefront of our policy agendas and this report presents an important but insufficiently explored way of doing just that: taxing the rich. Taxes that target the rich allow tax to play its redistributive function by constraining the growth of income.”
Colombia’s Tax Revolution
Echoing Mukumba, Colombia’s Minister of Finance and Public Credit José Antonio Ocampo proclaims in his foreword that “taxing the wealthiest is no longer an option — it’s a must. Global inequality has exploded and there is no better way to tackle inequality than by redistributing wealth.”
Colombia stood as the seventh most economically unequal nation on the planet in 2020 but Ocampo aims to change this. “By abolishing decades-long tax privileges and loopholes that benefit only the richest, there will be more money to invest in free, quality public services like education and health care. To invest in agriculture. In climate and nature. And in peace.” He says further, “This is not something symbolic; it’s not just talk about increasing taxes on the rich to support the poor. It’s [a] historic shift. And it’s long overdue…Ordinary Colombians have had enough and demanded change.”
In keeping with Ocampo’s aspirations, Colombia passed the Tax Reform Law (TRL) on January 1, 2023. In 2022, Colombia temporarily raised its corporation tax to 35%, the third highest rate in the world. The new TRL enshrines the 35% corporation tax in the Colombian legislature. The TRL also repealed the Mega Investment regime law, which reduced income tax to 27% for foreign investors. Most pertinently, TRL introduces Oxfam’s proposed 5% millionaire tax, which supplements the new 35% corporation tax. Although Oxfam’s paper only offers a fledgling suggestion, the ripples of its ideas are already making waves in the Colombian tax structure.
Fair Taxes to End Poverty
Since 1980, inheritance and income taxes have fallen sharply for the super-rich. With global cohesion and cooperation, the 5% income tax could eradicate poverty and hunger in a year at the cost of returning billionaires to the levels of wealth they held in 2012, which is still a tremendous imbalance in affluence.
The world is beginning to agree that “inequality is not inevitable,” as Oxfam highlights. Colombia has proven that fair taxes are a possibility. Those who wish to end inequality and poverty can take heart that the world is not only listening but beginning to change.
– David Smith
Photo: Wikipedia Commons
About Russia’s Foreign Aid
The Russian Federation or simply Russia has had what one can only describe as a tumultuous time over the period since the collapse of the Soviet Union. The economic revolution after the fall of the USSR could be the driving force behind the economic adversity the nation suffered during the period. With Russia enacting extreme economic reform with the aim to transform itself into a modern capitalist nation, Russia actually received vast humanitarian aid itself due to the hardship many lived through during the first years after the Soviet Union.
While there is still much work necessary in the country, Russia has transformed itself from a net receiver of foreign aid into a significant net donor. Russia’s Official Development Assistance (ODA) steadily increased from $100 million in 2004 to more than $1 billion in 2017, making it one of the largest foreign aid donors in the world. Here is some information about Russia’s foreign aid.
Russia’s Foreign Aid
According to the World Bank, Russia has been formulating its development cooperation agenda for nearly a decade. The nation has increased its foreign aid efforts, chiefly, with a significant boost to ODA. As stated previously, Russia’s ODA gradually increased between 2004 and 2017. While also increasing foreign aid, Russia equally provides significant military aid to certain nations.
Alongside the ODA, Russia has increased its role in improving assistance to the International Development Association (IDA). The World Bank stated that “Russia expressed strong support for the IDA as an important multilateral mechanism for providing assistance to the poorest countries.”
Putin and his government list “poverty reduction, disaster relief and the development of trade and economic partnerships as the key reasons” why Russia gives foreign aid, according to AidData.
However, studies also suggest that Moscow might actually be a “pioneer in de-stabilizing aid.” This is a form of aid designed to promote unrest and provoke antagonism towards other states and international institutions. Governments can do this through financial military aid.
Benefits to Russia
Many assume that providing foreign aid only benefits the recipient nation. However, there are many reasons why foreign aid could also benefit Russia itself. By providing foreign aid, there is a chance to boost economic activity in recipient countries. Russia may be able to improve conditions for trade and foreign investment in receiving countries. Thus, increasing the industrial capabilities and capacities may help provide more markets for Russia and increase potential trading partners, according to the World Bank.
Increasing and strengthening national institutions that combat organized crime and terrorism in receiving nations may also prove beneficial to Russia by improving Russian national security. AidData suggests that Russia also benefits from “checkbook diplomacy via foreign aid.” Nicaragua benefited heavily from Russia’s ODA, receiving $150 million alongside substantial military aid.
Nicaragua happens to be one of the only nations that recognize the Russian-backed separatist regions of Abkhazia and South Ossetia as independent nations. Perhaps unsurprisingly, Nicaragua was one of only 11 states to back Russia in a U.N. General Assembly resolution during the Russian invasion of Crimea in 2014. This suggests that Russia also benefits politically from foreign aid, gaining favor from nations that receive financial and military aid from the nation.
Benefits of Foreign Aid
While it is possible to see how Russia may benefit from giving foreign aid, it is clear that foreign aid helps many nations around the world tackle serious issues such as poverty. Humanitarian Careers has stated that the first significant reason foreign aid is so important is that “it saves lives.”
Countries that provide foreign aid contribute a number of their funds to humanitarian assistance. Nations that crises, disasters or conflicts around the world affect are often unable to afford basic necessities due to the situations they are in. Foreign aid allows for the provision of food and water alongside other vital supplies that are necessary during a crisis. Foreign aid also allows for a more steadfast recovery and helps rebuild areas where catastrophes devastated, according to Humanitarian Careers.
A second key benefit of international foreign aid is that it helps impoverished countries develop. Increased funding to key government departments such as infrastructure, health care and education can help reduce poverty. Assisting poorer nations benefits their citizens’ livelihoods and increases their incomes.
A substantial part of foreign aid is in the form of military aid. Military aid can come in many different forms. It mostly comes in the form of donations of military equipment or loans which a nation can spend on its armed forces. This can be vital as many donor nations have significant security threats such as terrorism, organized crime groups or separatist movements. While often divisive depending on which side of the debate a person is on, military aid can provide huge security to a nation.
Increasing Efforts
The Russian government has made huge strides to increase its foreign aid in recent years, having moved from a net receiver of foreign aid into a global donor of foreign aid. Foreign aid not only provides many benefits to Russia but also will help nations in need better provide for their citizens.
Ultimately, foreign aid can provide significant resources to those in severe poverty across the globe. The more foreign aid provided from those nations who can afford to can only continue to benefit those who struggle to make ends meet and those who have suffered through tragic natural disasters and regional conflicts that devastate local populations.
– Josef Whitehead
Photo: Flickr
Implementing Fair Taxes to End Poverty
In a time of unprecedented wealth, poverty still plagues the planet. Despite enormous strides in health care, education and total wealth over the last millennium, modern society is as unequal as feudal Europe. As transnational companies (TNCs) and the super-rich accrue vast fortunes, in 2022, 648 million people lived in extreme poverty, surviving on less than $2.15 per day. Without fair taxes, global inequality increases and poverty progress slows.
Growing Inequality
Between 1990 and 2019, the global extreme poverty rate shrank from 37.8% to 8.4%. However, in the wake of the global pandemic, progress toward ending poverty reversed for the first time in 25 years. In 2020, global extreme poverty rates rose to 9.3%. Since 2020, the wealthiest 1% of people have accumulated 63% of all newly created wealth.
Further, as billionaire fortunes raise a cumulative interest of $2.7 billion per day, the last year saw inflation rates surpass salary growth for 1.7 billion workers. Only half of all billionaire fortunes are subject to inheritance tax, with “tax havens” holding “8% of the world’s household financial wealth,” Oxfam highlights. Additionally, major “food and energy companies more than doubled their profits in 2022,” during the same year that saw even the developed world choose between a full stomach and a warm home, Oxfam reports.
The 5% Tax
In January 2023, Oxfam published a paper titled “Survival of the Richest,” which highlights the broadening wealth gap between the rich and the deprived and suggests that the world reconsiders the meaning of fair taxes. The crux of this paper is a simple idea. Oxfam proposes that a 5% tax apply unilaterally to all multi-millionaires and billionaires. A humble 5% tax would accumulate $1.7 trillion per annum: sufficient funds to implement a comprehensive strategy to eliminate world hunger and end poverty for 2 billion people.
Changing Attitudes
Amid escalating inequality, attitudes regarding what constitutes fair taxes are changing. For the first time in history, most Americans agree with the statement: “the government should redistribute wealth by heavy taxes on the rich.” About 80% of Indians and 85% of Brazilians also favor higher, fair taxes for the super-rich.
In October 2022, proposed tax cuts for large corporations in the U.K. led to a “U-turn” in the prime minister’s plans and even her resignation. In the same year, more than 100 millionaires signed a charter demanding higher tax burdens on the rich as a way to resolve global poverty. Even those who benefit from the current economic system agree that it causes unfair economic inequality.
Tax expert Chenai C. Mukumba says in her foreword introducing the Oxfam paper, “Inequality is one of the most important issues today and, left unabated, has the potential to exacerbate many of the social cleavages that exist within our society.”
She says further, “Addressing it, therefore, should be at the forefront of our policy agendas and this report presents an important but insufficiently explored way of doing just that: taxing the rich. Taxes that target the rich allow tax to play its redistributive function by constraining the growth of income.”
Colombia’s Tax Revolution
Echoing Mukumba, Colombia’s Minister of Finance and Public Credit José Antonio Ocampo proclaims in his foreword that “taxing the wealthiest is no longer an option — it’s a must. Global inequality has exploded and there is no better way to tackle inequality than by redistributing wealth.”
Colombia stood as the seventh most economically unequal nation on the planet in 2020 but Ocampo aims to change this. “By abolishing decades-long tax privileges and loopholes that benefit only the richest, there will be more money to invest in free, quality public services like education and health care. To invest in agriculture. In climate and nature. And in peace.” He says further, “This is not something symbolic; it’s not just talk about increasing taxes on the rich to support the poor. It’s [a] historic shift. And it’s long overdue…Ordinary Colombians have had enough and demanded change.”
In keeping with Ocampo’s aspirations, Colombia passed the Tax Reform Law (TRL) on January 1, 2023. In 2022, Colombia temporarily raised its corporation tax to 35%, the third highest rate in the world. The new TRL enshrines the 35% corporation tax in the Colombian legislature. The TRL also repealed the Mega Investment regime law, which reduced income tax to 27% for foreign investors. Most pertinently, TRL introduces Oxfam’s proposed 5% millionaire tax, which supplements the new 35% corporation tax. Although Oxfam’s paper only offers a fledgling suggestion, the ripples of its ideas are already making waves in the Colombian tax structure.
Fair Taxes to End Poverty
Since 1980, inheritance and income taxes have fallen sharply for the super-rich. With global cohesion and cooperation, the 5% income tax could eradicate poverty and hunger in a year at the cost of returning billionaires to the levels of wealth they held in 2012, which is still a tremendous imbalance in affluence.
The world is beginning to agree that “inequality is not inevitable,” as Oxfam highlights. Colombia has proven that fair taxes are a possibility. Those who wish to end inequality and poverty can take heart that the world is not only listening but beginning to change.
– David Smith
Photo: Wikipedia Commons
Bamboo Houses to Address the Global Housing Crisis
Across the globe, millions of people are suffering from homelessness. In 2017, Habitat for Humanity approximated that 1.6 billion people worldwide suffered from inadequate housing. With the global population continuing to rise, the need for housing across the globe is becoming dire. More than half the planet’s population lives in urban areas, yet affordable housing is inaccessible. The answer to this housing inadequacy could come from one of the fastest-growing grasses on the planet — bamboo. Bamboo houses stand as an affordable solution to the global housing crisis.
What is Bamboo?
Bamboo is a tree-like grass that rapidly grows throughout countries with subtropical and tropical temperatures. The plant is most commonly found in South America and Asia but also exists in specific regions in North America, Australia and Africa. The unique aspect of this plant is its quick regrowth. Certain species of bamboo can grow 2.91 feet in just one day. Bamboo is durable, sustainable and strong. In fact, bamboo has a greater tensile strength than steel.
Bamboo is also an eco-friendly alternative to many different building materials. Bamboo contributes to the sequestration of carbon — “When properly managed and intensively harvested, bamboo can sequester up to 1.78 tonnes of CO2 per clump per year,” One Tree Planted says. Another study estimated that bamboo contributed to 27.38 million tons of oxygen per annum just in India alone.
The Potential of Bamboo Houses
Not only is the plant durable and sustainable but bamboo is also affordable. Bamboo is accessible and inexpensive in many parts of the world experiencing rapid urban growth. Besides its wide accessibility, because of the strength of the plant, bamboo is an optimal building material choice when creating houses in certain climates. Changing weather patterns have affected housing in drastic ways. More extreme weather has led to more fires, more hurricanes and the destruction of homes. Bamboo houses, however, prove resilient against extreme weather.
The Climate Smart Forest Economy Program began a climate-resilient bamboo housing initiative in Guatemala called CASSA. When tropical storm Julia hit, the program reported good news. “The CASSA bamboo houses were some of the few houses left undamaged by the storm. The bamboo structures held up against the incredibly strong winds and, because they are built on stilts, they avoided being flooded,” consultant Kagisho Koza said.
Not only is bamboo resistant to strong winds and flood damage but bamboo is also fireproof. Because of the high content of water in the bamboo, the plant can endure temperatures up to 400 degrees Celsius. This makes bamboo a great choice for building in areas where wildfires are common.
CASSA’s Work
CASSA, a sustainable construction company in Guatemala, is showcasing the value of bamboo in providing shelter for those in need. Across Guatemala, refugees of climate emergencies have been building bamboo houses with their very own tool kits developed by the Climate Smart Forestry Program. CASSA and the Climate Smart Forestry Program have been working together to get these toolkits out so that people affected by climate emergencies, such as hurricanes and flooding, have the ability and knowledge to create these bamboo houses and also pass their knowledge on to more people in their communities.
“Within five years, the four hectares of bamboo plantations supplying CASSA, for example, are expected to provide enough sustainable bamboo to build 40 homes per year, while also providing jobs and training for the local community and having a positive climate impact,” the World Economic Forum reports.
Providing shelter to the millions of people lacking adequate housing globally must stand as a priority. Bamboo houses are cost-effective and easily accessible in many countries where homelessness is on the rise. The durability and sustainability of the plant make it reliable in places most affected by extreme weather events.
– Olivia MacGregor
Photo: Flickr
Human Rights in Bosnia and Herzegovina
Bosnia and Herzegovina is a country located on the southern peninsula of Europe. Having gained its independence in 1992 following a war with Yugoslavia, Bosnia and Herzegovina is a relatively young country. The 1992-1995 war brought forth conflict between Bosniak, Croatian and Serbian individuals who wished to gain control of the territory. Thirty years later, tension continues to be prominent, challenging human rights in Bosnia and Herzegovina.
War
In March 1992, Bosnia and Herzegovina declared its independence from Yugoslavia. Bosnian Serb minority disagreed with the sovereignty of Bosnia and Herzegovina which led to conflict between ethnic and religious affinities and ultimately led to war as the country abandoned Yugoslavia. The war for independence ultimately caused great disagreement between Croats, Serbs and Bosniaks. During the war, the Bosnian Serb military campaign launched ethnic cleansing operations in an attempt to eliminate the number of Bosniak civilians. The war concluded in 1995 with an estimated 100,000 casualties.
The Borgen Project spoke with Velemir Jankovic, an individual born and raised in Bosnia and Herzegovina before the 1992 war and now lives in the U.S. Velemir describes that war’s impact on his village resulted in “his house being destroyed and him losing everything but hope.” Like Velemir, many refugees sought to escape the casualties of war. With physical destruction and political tension, many citizens still find themselves struggling to settle. While many suffered monetary loss, such as Velemir’s home, others lost family members, leading to great resentment among those the violence of war impacted. These differences have impacted the Bosnian population for the last 30 years.
Unemployment
In 2020, the unemployment rate in Bosnia and Herzegovina stood at 27%. Corruption and slow economic development contribute to low job availability in the area. Not to mention, ethnic conflicts enabled a divide in the country. Prejudice against certain ethnicities continues to be prominent after the war, therefore making it difficult for individuals to work harmoniously alongside one another.
There has been a progressive decrease in the unemployment rate in recent years. In 2014, 57% of Bosnia and Herzegovina’s youth were unemployed. That number has decreased to 14.9% in 2021.
While the country is still figuring out a strong economic structure, financial aid funds infrastructure and facilities for citizens. What may be contributing to the improvement of unemployment is the 2021 Instrument for Pre-accession Assistance (IPA), a €73 million investment for regional development, social protection, as well as employment and public transportation. One can see IPA’s impact on the labor market through the development of wage settings as well as the establishment of unions.
Poverty and the Economy
While unemployment is one of the leading factors in the stagnation of the economy, Bosnia and Herzegovina has not seen an impact on the poverty levels. The poverty rate has steadily remained at 15% between the years 2008 and 2020, according to the World Bank.
While aid enables the country to survive financially, the economy in Bosnia and Herzegovina is depleting. The COVID-19 pandemic caused a significant decrease in consumption in 2020, therefore slipping Bosnia and Herzegovina into “its worst recession in 25 years.”
Not to mention, inflation has increased by 16.7% in 2022. These circumstances create a difficult economic environment for citizens. With low employment rates and high consumer costs, it is very difficult for Bosnians to overcome the poverty rate.
Human Rights
Aside from low infrastructure in the economy, abuse of human rights in Bosnia and Herzegovina continues to occur three decades after the turmoil of the 1992 war. In 2021, there were significant reports of torture or inhumane treatment of civilians by law enforcement. Abuse of power by police also harms individuals such as journalists. It is common for journalists to face violent threats to erase content, prohibiting them from their right to press.
There has also been an increase in gender-based discrimination, in which women are targeted violently and mistreated in the workplace. The tension between ethnic groups continues to be present as well, with Bosnians often planning anti-refugee platforms, using hostility and threats to harm migrant communities, according to the U.S. Department of State.
Organizations Working to Improve the Situation
CARE, a nonprofit that began helping marginalized groups in the area in 1993, has been able to provide aid to many citizens in Bosnia and Herzegovina. It focuses on integrating minority group members into society through supporting local programs such as the Young Men’s Initiative II (YMI II), which it founded in 2006.
The YMI II ultimately joins young men in Bosnia and Herzegovina, teaching them the importance of gender equality. The goal of the program is to educate the younger generation on the importance of unity in efforts to make an impact on the years of tension and discrimination in Bosnia and Herzegovina.
There is an evident issue of human rights in Bosnia and Herzegovina following the 1992 war. Its independence from Yugoslavia enabled prejudice and discrimination among differing ethnicities. Through foreign aid and a steady increase in the employment rate, there is hope that this struggling country improves its social welfare.
– Micaela Carrillo
Photo: Flickr
USAID Programs in Yemen
The continued civil war in Yemen, ongoing since 2014, has led to a severe humanitarian crisis. The UNFPA says the conflict has displaced 4.2 million Yemenis as of 2022 and 20 million citizens are suffering from malnutrition and hunger, according to the World Food Programme (WFP). By February 2022, about 80% of the population lived in poverty. Extreme climate events have only worsened this while increasing people’s susceptibility to disease outbreaks. Since 1959, apart from a 70-year hiatus ending in 2003, USAID programs in Yemen have helped to better the quality of life in the country.
USAID Programs in Yemen
Looking Ahead
In a world where many still require emergency humanitarian assistance, foreign aid is critical. Even though there is room for the U.S. government to do more, so far, the U.S. stands as a champion in bringing support to Yemen amid its crisis.
– Audrey Gaines
Photo: Flickr
Eliminating Human Trafficking in Comoros
Human trafficking is an issue that plagues most of the world, but in some nations, it is more prevalent than in others. The archipelago of Comoros – located off of Africa’s east coast in the Indian Ocean – is a Tier 2 Watch List country making its citizens some of the most at-risk for human trafficking.
Notable Numbers
The Human Trafficking Institute’s annual Trafficking in Persons Report (TIP Report) ranks countries in three tiers – the third being the worst. Tier 2 means that the respective government does not fully comply with the minimum standards for combating trafficking but is making significant efforts to do so. However, the designation “Watch List” means that the number of human trafficking victims in Comoros is increasing or there is no evidence of heightened efforts from the previous year.
Most Comorian children ages 3 to 7 – and some as old as 14 – often study at unofficial neighborhood schools directed by private instructors, which makes them vulnerable to exploitation as domestic servants or field hands. Without formal schools to educate, children are often left in the hands of the corrupt.
The estimated 3,000 to 4,000 unaccompanied children on the island of Mayotte are especially susceptible to domestic servitude and sex trafficking. Due to a corrupt government, inadequate border control and international criminal networks, there is a high risk for transnational and domestic human trafficking in Comoros.
The 2022 TIP Report found that during the reporting period, the Comorian government investigated four trafficking cases – three of which were for forced labor, and one involving both labor and sex trafficking.
To combat human trafficking in Comoros, the government partnered with local NGOs and international organizations to provide support for the eight victims identified in 2022. MAEECHA is an NGO located in Moroni, Comoros that works to protect minors in isolation and much more. Between 2014 and 2015, MAEECHA identified 514 minors in a situation of vulnerability – 220, or 43%, were in isolation. About 68% of these children were under 12 years old.
Diplomatic Relations
The U.S. established diplomatic relations with Comoros in 1977 and has maintained its presence in some capacity through a strong bilateral relationship with the U.S. ambassador in Madagascar. Additionally, the Peace Corps re-established itself in the island nation in 2015.
In 2022, Comoros upgraded from Tier 3 to Tier 2 Watch List based on achievements, including investigating trafficking crimes for the first time since 2014 and initiating the country’s first trafficking prosecution. Though this may seem insignificant, a country as impoverished as Comoros taking these steps could mean major progress in the coming years.
That being said, when a country is Tier 3, they may no longer be subject to foreign aid from the United States, so Comoros receiving international support is conditional upon it remaining in Tier 1 or 2.
Progress for Comoros
The U.N. Office on Drugs and Crime (UNODC) reports that local community engagement is a recent initiative from Comoros in the war against trafficking. With the support of UNODC through informational workshops, parliamentarians and Islamic leaders have been working to spread awareness of human trafficking. With this type of movement underway – and hopefully, more to come – there is optimism that progress will occur in ensuring the safety of Comorians, especially the youth.
The U.S. Department of State financed the previously mentioned workshops as a part of the UNODC Enhancing Criminal Justice Responses to Trafficking in Person in Eastern Africa project. The main focus of the project is aligning different regions’ national legislation on TIP.
Although Comoros is making progress as a nation with regard to human trafficking, there is much more that needs to occur for all its citizens to have safety and everything they need.
– Stella Tirone
Photo: Flickr
Hope Amid Sri Lanka’s Debt Crisis
Sri Lanka’s debt crisis has become the latest point of geopolitical contention. The country experienced extreme economic hardship during the COVID-19 pandemic, leaving it unable to pay billions of dollars worth of debt to private and government creditors. Following an unprecedented defaulting of its debts and a political crisis that saw the president resign and the prime minister’s office raided, Sri Lanka stands on the precipice of an economic and humanitarian catastrophe. With the United States, Russia, India and China all weighing in, the world’s monetary eyes have turned toward the struggling island nation.
A Closer Look at Sri Lanka’s Collapse
Sri Lanka’s debt ballooned over the last few years due to domestic crises and an unfavorable economic situation. Relying primarily on exports to feed an ever-growing deficit, the country’s situation took a turn for the worse when pandemic supply shocks and tourism dried up foreign revenue, causing blackouts along with food and energy shortages. Unsurprisingly, political turmoil quickly followed suit, ending with the ousting of President Rajapaksa and the ascension of Wickremesinghe to office. Now, Sri Lanka has nearly no foreign reserves and a 119% debt-to-GDP ratio.
If the macroeconomic situation seems dire, it pales in comparison to the suffering of Sri Lanka’s poorest citizens. Between 2021 and 2022, poverty rates increased by half to 25.6%, pushing 2.7 million more people into the grips of poverty. Additionally, inflation in Sri Lanka hit a record high of 73.7% in October 2022. With the world’s economy expected to shrink over the next year, Sri Lanka’s predicament threatens to worsen as its crisis deepens.
Sri Lanka’s Creditors
Underlying these pressures are private and public groups using Sri Lanka as a pawn on the international stage. China accounted for close to 10% of Sri Lanka’s debt by April 2021 but refuses to negotiate the amount owed, insisting on “a two-year moratorium” instead. India, China’s competition in the region, offered Sri Lanka an emergency $4.4 billion in credit, attempting to woo the island nation away from its traditional source of funding. The International Monetary Fund (IMF) says it will only consider a relief package if Sri Lanka can come to an agreement with its main creditors.
In addition, private banks have played hardball with Sri Lanka, exacerbating the current crisis. These organizations collectively hold half of Sri Lanka’s debt, lending to the island nation at an exorbitantly high-interest rate. Renowned economists, such as Thomas Piketty, note that many of these companies knew Sri Lanka would be unable to repay its debt but chose to offer it loans regardless. His conclusion is that risky lending must bear the consequences.
Debt Assistance
Although some economists like Piketty champion cancellations of Sri Lanka’s debt, a more moderate solution does seem plausible. The IMF showed more openness to an emergency loan as talks with China and India continued. Provided Sri Lanka passes austerity and anti-corruption measures, the IMF said in September 2022 that it would be willing to give $2.9 billion in funding. Vitally, this aid would allow the country to purchase much-needed medical equipment and food. Private creditors also demonstrated a willingness to restructure Sri Lanka’s debt, pending approval from President Wickremesinghe.
Domestically, Sri Lanka’s president stressed the importance of weathering the economic storm. Urging his fellow countrymen forward, President Wickremesinghe stated that as pay raises for civil servants come into effect “the public would become prosperous, with income sources increasing. The interest rate can be reduced. In another three years, present incomes can be increased by 75%.” Indeed, inflation will likely decrease from 45% in 2022 to 23% in 2023 and only 8% in 2024.
Foreign Aid to Help During Sri Lanka’s Debt Crisis
Amid Sri Lanka’s debt crisis, it is important not to lose sight of those most affected by the country’s economic woes: its people. Given the dire condition of food, fuel and supplies, immediate aid provides the most tangible form of assistance. In June 2022, USAID announced almost $6 million worth of humanitarian aid to Sri Lanka on top of assistance worth close to $12 million a month prior. The funding will “provide cash assistance, short-term jobs, and agriculture supplies such as seeds directly to crisis-affected people to meet their basic needs,” the USAID website says.
Meanwhile, the United Nations raised $79 million to relieve food and medicine shortages in Sri Lanka. Through its Humanitarian Needs and Priorities Plan, the U.N. aims to help about 3.4 million Sri Lankans in need of aid.
With increased aid and pressure from the international community to resolve the crisis, a resolution to the crisis appears, if not imminent, at least plausible. Although this provides scarce comfort to the 6.3 million Sri Lankans that food insecurity has affected as of September 2022, it is an important step in the right direction while humanitarian organizations address the needs of struggling people on the ground.
– Samuel Bowles
Photo: Pixabay
Land of the Eternal Spring: Renewable Energy in Guatemala
Guatemala is known as the ‘Land of the Eternal Spring’ on account of its exotic climate and its tropical rainforests, not to mention the mysticism that shrouds the history of an ancient Mayan civilization. A nation of about 17 million people, Guatemala is situated in the heart of Central America with borders and ports on both the Pacific and the Atlantic Oceans. This geographical advantage in part explains why Guatemala has the largest economy in Central America. Nevertheless, disparity is rife. Guatemala has the highest level of chronic malnutrition in Latin America and the Caribbean (LAC), ranking fourth-highest globally. Energy poverty is also prevalent, but renewable energy in Guatemala has the potential to lift citizens out of poverty.
Energy Poverty
A key contributor to mass food production and distribution is the availability of energy. The United States, for example, uses more energy per annum “growing, preparing and transporting food” than the entirety of the United Kingdom requires for all its energy consumption. A recent paper published in Energy Economics estimated that 76% of Guatemalans are living in energy poverty, a term defined as a lack of access to “adequate, affordable, reliable, high-quality, safe and environmentally benign energy services to support economic and human development.”
Government Push for Renewable Energy in Guatemala
To ease the current energy crisis, the Guatemalan government has turned toward stricter measures to prevent electricity wastage and is also requiring that private businesses invest in renewable energy in Guatemala. The recently implemented “Energy Policy 2019-2050,” which the Ministry of Energy and Mining developed, enforces residential regulations such as the “normalization of technical parameters relating to electric equipment” within households, a guide by Rafael Pinto Ortega and Rafael Briz explains. Policy objectives for industrial firms require serious efforts to promote “electrical self-sufficiency” by encouraging the use of renewable energy. The incentive for firms to comply and quickly adapt stems from the knowledge that the contract for the nation’s current main electricity supplier, Jaguar Energy, comes to a close in 2025.
The Potential for Renewable Energy in Guatemala
Guatemala’s reputation as the ‘Land of the Eternal Spring’ is beginning to take on a new concept in the 21st century. The enormous potential for renewable energy in Guatemala literally springs from its capacity for hydropower. Hydropower uses fast-flowing water to turn turbines and power machines, efficiently combining one of the world’s largest natural resources, water and the enduring force of gravity, to create energy. As of 2019, Guatemala had already installed 1,559 MW of hydropower capacity, which contributed to 41% of the nation’s total energy production.
The International Hydropower Association (IHA) is an NGO operating in Guatemala with the mission of ensuring the sustainable development of hydropower. By overseeing projects and ensuring plans meet the principles and terms of the San José Declaration on Sustainable Hydropower, the IHA looks to increase the contribution of renewable energy in Guatemala.
Looking Ahead
Renewable energy in Guatemala has the capacity to lift millions out of poverty. Government pressure and foreign aid for NGOs like IHA ensure that renewable energy becomes a priority investment. Hydropower has already proven to be an effective source of energy in the coastal nation and further utilization of this abundant resource will significantly improve the ongoing energy crisis, allowing Guatemalans to develop their agricultural industry and enable enterprising development in the future.
– Max Edmund
Photo: Flickr
Afghanistan Online University
In response to the decree that they could not attend university, many Afghan women have started to demonstrate for their rights. They attend school secretly in Afghanistan and take classes online. Based in Germany, AOU’s mission is to provide higher education for Afghans in order to make Afghanistan a more peaceful and successful country.
Afghanistan Online University Basics
Afghan academics who voluntarily left Afghanistan to live in Europe founded AOU. The online school strives to give higher education to Afghans both inside and outside the country, focusing on those living in refugee camps or other unstable settings. It offers ten fields of study: information and computer science, education, psychology, social work, sociology, political science, journalism/communication science, economics, business studies and language and literature. In addition, the university explores the details of the culture and society in Afghanistan.
Similar to most open universities, the AOU has study programs at both bachelor and master levels as well as doctoral training. It employs 60 professors and 60 junior academic staff. In addition, it uses an administrative staff to cover teaching assignments.
Potential Expansion
AOU needs funding to accommodate more students and support future projects, but as of now, it is offering free classes. The Taliban has rejected the AOU’s accreditation request so the university is pursuing it from the European Union.
The university can currently accommodate about 5,000 students, but with limited additional support, it could enroll even more. A physical campus university facility where the students could access a library and a computer system would cost an estimated 30 million euros and require additional funds for scholarship and research development.
Challenges
Although the university is facing challenges including language barriers and the risk of students being caught, the students are determined to continue their education. They remain anonymous and use fake names in order to not be discovered and remain safe. Widespread internet cuts and poor Afghan internet connection negatively impact the number of people served. To combat that, AOU is recording lectures to reduce the problems caused by these interruptions. Moreover, students unable to attend classes or complete homework due to internet issues are given deadline extensions.
Looking Ahead
Of course, AOU is not a permanent solution. It is crucial that the rights of Afghan women vastly improve, which includes opening universities to them once again. However, Afghanistan Online University is putting forth commendable effort and giving worthwhile educational opportunities to many individuals.
– Megan Roush
Photo: Flickr
Combating Human Trafficking in Guinea
For the third year in a row, in its Trafficking in Persons Report, the U.S. Department of State ranks Guinea as a Tier 2 Watch List country in 2022 in terms of its efforts to eliminate human trafficking in Guinea. This ranking means “the Government of Guinea does not fully meet the minimum standards for the elimination of trafficking but is making significant efforts to do so.”
Guinea’s Trafficking Profile
According to the trafficking profile of Guinea, as set out in the 2022 TIP report, “human traffickers exploit domestic and foreign victims in Guinea, and traffickers exploit victims from Guinea abroad.” The populations most at risk of sex trafficking and forced labor in Guinea are “individuals in commercial sex, including those from [Economic Community of West African States] and other nations, adults and children working in the informal labor sector, homeless and orphaned children, artisanal miners, children and adults with albinism and persons suffering severe mental illnesses,” the U.S. State Department says.
Traffickers also push both young boys and adults into forced labor in the mining industry. According to Verité, “Guinea also serves as a transit country for children from other West African countries who are forced into gold mining throughout that region.”
Girls and women in Guinea are at risk of ending up in domestic servitude or sex trafficking. Trafficking rings recruit females under the false pretense of work opportunities in a foreign country, subjecting them to forced labor or other exploitive conditions.
Guinea’s Progress
In 2021, the government investigated 46 trafficking cases and continued investigations on 11 incidents from the previous year. Guinean courts convicted 24 traffickers and acquitted one in comparison to 20 convictions in 2020. But out of these convictions, the majority of the traffickers received jail time of 24 months or less and one received only a fine — inadequate punishment considering the seriousness of the crimes.
The government dedicated a budget to the Office for the Protection of Gender, Children and Morals (OPROGEM) “for the first time since 2016” and also provided both finances and land to build new headquarters for OPROGEM. Additionally, the Guinean government, with support from a foreign government and several organizations, provided training to all relevant authorities on “anti-trafficking enforcement procedures, victim referral and investigative techniques related to human trafficking.”
The police and gendarme academy staff also received anti-trafficking skills training guidebooks and the government conducted one training session for prosecutors and judges to learn more about trafficking. Guinea’s government also established an “emergency anti-trafficking national action plan (NAP) to supplement the 2020-2022 NAP.” The creation of a helpline and an increase of resources designated to the anti-trafficking committee (CNLTPPA) also stand as positive steps on the part of the government.
APRIES
The African Programming and Research Initiative to End Slavery (APRIES) is a group of anti-trafficking researchers and advocates. “We use research and the collection of baseline data to identify target populations that are exploited in a trafficking sector and then work with local agencies to implement rigorous anti-trafficking programs and policies,” its website explains. APRIES currently works in Senegal, Sierra Leone and Guinea.
APRIES’ work in Guinea centers around child trafficking victims ages 5 to 16 across the Boké and Mamou regions. The program aims to “provide protection services to child trafficking survivors and ensure the sustainable reintegration of these survivors.” During its first year of work, the program aimed to “serve 65 child survivors at the Sabou Guinée transit center in Boké and 35 child survivors at the FMK transit center in Mamou.” The project also aims to ensure the successful prosecution of child traffickers. The Guinean NGO Les Mêmes Droits pour Tous (“Equal Rights for All”) will serve as a key partner.
With continued efforts on the part of the government and anti-trafficking organizations, the prevalence of human trafficking in Guinea can reduce.
– Lauryn Defreitas
Photo: Flickr