Sri Lanka is experiencing an economic crisis of massive proportions. The U.N. has dubbed it a “food, fuel and finance crisis” that is endangering millions of people. This economic crisis has been building since the onset of the COVID-19 pandemic, but it has recently culminated in a massive fuel shortage that has paralyzed the economy. The food, fuel and finance crisis in Sri Lanka is an indicator of a worldwide trend of rising prices, resource shortages and civil unrest.
Desperation and Unrest in Sri Lanka
Countries all over the world, both developed and developing have experienced the economic and social shocks of the pandemic and the war in Ukraine. Many nations are fearing a looming recession, poor health care resources amidst the pandemic and a slowing job market. For developing countries, this means a nearly complete depletion of food, energy, economic stability and COVID-19 response.
The U.N. found that three months of consistent heightened inflation have caused around 71 million people to fall into poverty. The citizens of many developing countries, including Sri Lanka are turning to public political turmoil out of desperation.
Since the end of June, Sri Lanka has been experiencing one of the worst fuel shortages in history. The demand for fuel is so high and the supply is so low that people often have to wait in line for over two days to fill their tanks. One woman said that she spends more than half of her income on fuel.
The Sri Lankan government has demanded that anyone who can must work remotely, schools have been shut down and public transportation services are almost completely stopped, according to The Business Standard. The country has essentially come to a complete standstill.
This fuel crisis comes alongside a prolonged economic catastrophe in Sri Lanka, in which citizens have been facing severe shortages of medicine and inflation that has skyrocketed to 55%. Sri Lankans are also experiencing governmental uncertainty, as their president resigned after a series of protests. The food, fuel and finance crisis in Sri Lanka also comes from a history of debt defaulting and account deficits. Sri Lanka’s economy and exports have been unstable since the 1980s and they are now crumbling as a result of the war in Ukraine, The Business Standard reports.
The Crisis in Sri Lanka is Apart from a Larger Trend
The crisis in Sri Lanka is an indicator of a more widespread food, fuel, and financial crisis that is seriously harming many low-income countries. The U.N. Office for the Coordination of Humanitarian Affairs is claiming that the war in Ukraine is causing a wave of rising prices for essential commodities – food, fuel, medicine and energy – that are plunging millions into a standard of living crisis. The crisis put in danger about 1.6 billion people in 94 countries.
In the Middle East and North Africa, the livelihoods of 2.8 million people are threatened by this crisis and over 500 million people in Asia are exposed to the food and finance crisis, according to the U.N.
International Organizations Attempt to Break the Cycle of Crisis
International organizations like the U.N. and the International Monetary Fund (IMF) are not ignoring the crisis in Sri Lanka and other countries, but they are not doing enough to help either. In order to avoid further civil unrest and slow the growing numbers of people experiencing extreme poverty, international organizations could focus on multilateral investments that pay more in capital and are focused specifically on targeted lending and crisis response measures, the U.N. reports.
The U.N. has employed its Global Crisis Response Group to administer targeted cash transfers directly to the affected countries as a form of direct aid.
Going Forward Amidst a Global Crisis
There has been widespread suffering globally due to the COVID-19 pandemic and the war in Ukraine. However, low-income and developing countries are experiencing record-breaking levels of hunger and lack of resources. The Secretary General of the U.N. believes that solving the global crisis is not possible without first paying attention to the economic crisis in developing countries.
People in low-income countries are in desperate need of food, economic support, fuel and adequate health care. Hopefully, international organizations and high-income countries can step in and help.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-19 01:30:032022-08-18 01:27:52Food, Fuel and Finance Crisis in Sri Lanka
For some, poverty in Mexico is their reality. Juana, a 17-year-old girl living in Maneadero, Mexico, was born into a family with no access to education, clean water, electricity or housing. This is becoming the norm in Mexico. Juana only managed to escape these conditions through the help of foundations that built her family home and provided her with a scholarship. Extreme poverty increased by 2.1 million from 2018 to 2020, with 43.9% of the population below the national poverty line. The current government welfare system is failing to deal with increasing poverty in Mexico. Many Mexicans are not as lucky as Juana. Here is everything you need to know about poverty in Mexico that is causing the lack of opportunities and high inequality.
Corruption, Security and Justice
Mexico is not a poor country. As of 2020, it has the 15th largest economy in the world and until recently had the largest economy in Latin America. However, 15 individuals hold 13% of Mexico’s wealth and corruption is rampant across all sectors. As a result, Mexico invests less money into public services due to bribes and misallocation of resources into unproductive activities and inefficient policies. This has led to the rich getting richer and the poor getting poorer.
In fact, Transparency International outlines that “corruption is the most regressive tax in the country and a direct obstacle to the access to the most basic services for development,” Huff Post reports. This plays a key role in the rising levels of poverty in Mexico.
On top of this, in Mexico wealth is not distributed evenly, with those living in rural areas receiving less. They have little access to infrastructure or social support. The most extreme examples of this are Chiapas and Oaxaca, with poverty rates over 60%.
In addition to rising levels of poverty, people’s quality of life is also impacted by the fact that 93% of all crimes go unreported in Mexico. Crime has multiplied due to Mexican law enforcement agencies failing to hold people accountable.
The growth of drug cartels and petty crime has led to greater political instability and affected economic growth. As a result of this, 12 million Mexicans now work through the black market without the protection of social security. These individuals are often exploited. The number in this situation is only increasing.
To help support the poor, The Hunger Project has set up a scheme that advocates and creates partnerships between municipalities in Mexico. The aim is to create self-reliant communities.
Since 2020, this has already seen success in Oaxaca. Some examples of this are The Hunger Project setting up backyard orchards in seven municipalities, introducing rainwater harvesting systems and installing ecological toilets. This has helped to deal with the issues of health care and education outlined below. The more awareness and opportunities that are introduced like this, the more people could get chances like Juana’s.
Health Care and COVID-19
As a result of corruption and instability, public institutions in Mexico fail to live up to the standards necessary to ensure people’s health and well-being. From 2012 to 2014, those with access to health care decreased by 3.5 million.
Consequently, families are likely to have more children, leading to less investment in each child. This means children develop fewer skills. As a result, families are more likely to stay in poverty. The added pressures of COVID-19 have made the situation worse, explaining the increased rates of poverty in recent years.
Moreover, 30% of the population experience nutritional problems as they cannot afford basic food items. This leads to underdevelopment in children and a higher mortality rate. As a result, human capital in Mexico is lacking.
While unemployment is high, where people do secure work, they are often weak and uneducated, leading to lower productivity. This has reduced economic growth, resulting in higher levels of poverty in Mexico.
Education
COVID-19 has also decreased access to education. Education was already limited, with only 62% of Mexican children reaching high school. This limits the opportunities for those in poverty, amplifying the divide between the rich and poor.
Furthermore, those living in rural areas have even less access to education meaning the uneven distribution of wealth in these areas is only increasing. Lack of skills and qualifications also means that many poor people cannot find jobs, resulting in extreme poverty levels of up to nearly 20% across the country.
Juana was lucky. From everything you need to know about poverty in Mexico, there is hope for a better future through schemes such as The Hunger Project. A self-reliant population could reduce the issues of elitism and corruption. Economic growth could prosper and poverty could decrease if this campaign continues. This could give Mexico the opportunity to renovate its infrastructure and institutions.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-18 07:30:472024-05-30 22:29:55All You Need to Know About Poverty in Mexico
Protected parks offer much in the way of land conservation and the protection of wildlife. However, many conservation projects have displaced and therefore harmed Indigenous communities across the globe. Throughout Africa, the displacement of African tribes is an ongoing concern as conservation efforts threaten Indigenous livelihoods.
Conservation Exiles Tribes from their Homes
As global efforts are underway to protect and conserve nearly 30% of the world’s land by 2030, experts are raising concerns, suggesting that the expansive and unethical “land grab” would not only be the largest in history but also would lead to the estimated displacement of nearly 300 million people–most of whom are Indigenous.
For example, the Baka forest pygmy tribe of southeast Cameroon, Africa, near Nki National Park lost the right to hunt or fish on lands the tribe has used for generations. Without legal access to their forest, the tribe suffers a loss of livelihood, even though their hunting reportedly does not negatively impact the environment.
And the Baka is not alone. Many other African tribes are suffering at the expense of conservation. These include the Sengwer tribe of Kenya. Its 5,000 hunters suffer from a 1964 ban that stops them from returning to their ancestral forests. The San Bushmen in Kalahari Desert, Botswana, lost their lands to mining and tourism. The Ogiek of Kenya lost rights to the Mau forest.
Also, while wildlife reserves offer employment and opportunity to local communities, their benefit may be exaggerated. There are many documented cases of abuse against the Indigenous people who live there.
Indigenous Tribes Benefit the Land
Not only does the displacement of African tribes hurt Indigenous communities, but it also may not help and may even hurt the land itself. For example, the Rainforest Foundation – United Kingdom (RFUK) documented that while conservation efforts in the Congo Basin totaled hundreds of millions of dollars over ten years, there is little to no evidence that protected areas are actually protecting biodiversity. Elephant and gorilla populations have declined drastically despite substantial funding for patrolling, anti-poaching and ecotourism.
On the other hand, there is evidence that Indigenous tribes do benefit the land. A 2022 study by the Asia Indigenous Peoples Pact found that Indigenous Peoples offered strategies and traditions benefiting the fight against extreme weather patterns and supporting the overall improvement and sustained health of the lands they inhabit. Additionally, Indigenous lands offer critical biodiversity and sustainability practices, which experts emphasize should be at the forefront of decision-making when governments create conservation and climate change policies, laws and strategies.
Strategies for Harmony of Land and People
For this reason, as conservation efforts move forward throughout the world, many look to strategies that allow Indigenous peoples to remain and have access to and foster their land. Such strategies include ways to reverse the damages of the displacement of African tribes.
As Dr. Grace Lara Souza, a political ecology activist from Kings College in London, emphasizes, “any conservation initiative that does not include Indigenous Peoples and Local Communities in its design, implementation and management, should be called into question.” She and other like-minded advocates suggest a community-based conservation model that empowers Indigenous people to oversee the protected lands rather than removing them from their ancestral grounds. When protected land is left without community monitors, miners, loggers and hunters often invade and destroy the ecosystem.
Since the year 1968, the International Work Group for Indigenous Affairs (IWGIA) has committed to “protecting, promoting and defending the rights of Indigenous peoples” across several regions, including Africa. To achieve this, the IWGIA partners with Indigenous peoples’ organizations across Africa. For example, the IWGIA partners with the Rwanda association for Indigenous people (CAURWA) to combat economic, social and political discrimination toward the Batwa people, hunter-gatherers who are the smallest Rwandan ethnic group. Together CAURWA and IWGIA advocate to apply existing land rights legislation to the Batwa.
Looking Forward
Organizations including IWGIA and activists including Dr. Souza offer hope to Indigenous people and their ancestral grounds. In Africa, their campaigns simultaneously improve conservation efforts and reverse the displacement of Indigenous African tribes.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Kim Thelwellhttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgKim Thelwell2022-08-18 07:30:042024-05-30 22:29:53Land Conservation and the Displacement of African Tribes
Although the COVID-19 pandemic has caused a severe setback in consumer spending in Africa, data shows that historically, sub-Saharan Africa has been in a much better economic standing than before COVID-19. Consumer spending in 1981 was $145.64 billion, whereas in 2021 it was over $1.2 trillion. This is a stark difference. Overall, there has been a 3.9% compound annual growth rate (CAGR) in consumer expenditure in Africa since 2010 and this momentum shows no signs of stopping. An industry that is exploiting the enormous market potential of 1.7 billion people is Africa’s beauty industry. The market growth in the industry is estimated to be $1.26 billion between 2020 and 2025, with a CAGR of 2%.
Africa’s Burgeoning Youth and Urbanization
High fertility rates coupled with lower mortality rates have led to Africa having the world’s youngest population. About 70% of sub-Saharan Africa’s population is less than 30 years old. Beauty and personal care products are favored by a younger demographic, who want to invest in fashion trends and their looks. This gives Africa the perfect leverage to boost its beauty and cosmetics industry.
It is estimated that by 2025, 45% of Africa’s population will be living in urban areas. According to McKinsey & Company, “per capita consumption spending in large cities in Africa is on average 79% higher at the city level than at the national level.”
Furthermore, as the country continues to develop, there is a shift from spending in informal markets (e.g., roadside stalls) to spending in more formal sectors, such as department stores, supermarkets, etc, according to Brookings. This is boosting beauty product sales.
Higher Purchasing Power
Over the last three decades, Africa’s middle class has tripled in size. By 2025, roughly 65% of African households will be earning more than $5,000, according to McKinsey & Company.
The increase in the number of people in the “discretionary spending income bracket” is likely to result in consumers increasing their spending on luxury items. This shift may also be due to a growing sense of personal hygiene among people and realizing the significant role that products such as soap, shampoo, etc. play in it. Africa’s beauty industry may help customers to realize and fulfill their body care goals.
It is no surprise that Africa’s beauty industry mainly caters to and is dominated by women. Greater access to education and high-paying jobs have increased the disposable income of African women. According to Beauty Africa, “…a significant chunk of [their] spending goes to the beauty and personal care products.”
Growth of E-Commerce
The GSM Association projects that by 2025, 615 million sub-Saharan Africans will subscribe to mobile services, 28% will have a 4G connection and 3% will have a 5G connection.
This will allow consumers to make electronic payments. In fact, mobile money “is growing five times faster in Africa than in any other region,” according to McKinsey & Company.
The evolution of e-commerce and fintech has made purchasing beauty products faster and easier. Additionally, technological advancements allow companies to better track market trends and profile customers, according to The Exchange.
Key Market Players
Nigeria’s beauty industry is attracting foreign direct investment because of its growing modern, fashion-conscious, female population. Her Imports, a U.S.-based hair-extension company, opened an outlet in Lagos, Nigeria in 2014. Patrick Terry, the CEO, said that their products were “performing sensationally in Africa,” according to Africa Business Pages.
According to The Guardian, the projected income for Her Imports from Africa “topped $100 million.”
South Africa is also a key market player. Between 2020-2025, it is expected that 53% of the market growth in Africa’s beauty industry will come from South Africa.
Many international companies are only now realizing Africa’s untapped potential. On May 27, 2022, global pop star Rihanna launched her beauty line, Fenty, in “South Africa, Botswana, Ghana, Kenya, Namibia, Nigeria, Zambia and Zimbabwe.” The launch of this premium brand comes as great news for African women who wanted a better representation of their skin tones.
Infrastructure and Poverty Alleviation Projects Helping
Infrastructure helps connect supply-demand chains, allows goods and services to move easily across borders and enhances overall efficiency in the production and consumption system. Improved infrastructure in the beauty and personal care industry not only generates more employment but also hikes up the sector’s growth rate, according to The Exchange. This increase in growth in turn attracts more investments for additional upgrades in infrastructure. This forms a continuous cycle that ultimately boosts the economic growth of Africa’s beauty industry.
Poverty alleviation projects could help people climb to the middle-income group and have greater purchasing power. Also, closing the gender gap and providing more women with education and equal opportunities could help them to earn income and spend it on the beauty and cosmetics market.
More private investment, advanced technology, improved infrastructure and greater contributions to poverty alleviation projects could help expand Africa’s beauty industry while keeping in line with United Nations Sustainable Development Goals and the African Union’s Agenda 2063.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-18 01:30:262024-06-11 23:16:53Africa’s Beauty Industry is Booming with Potential
Renewable energy currently amounts to around 18.9% of Canada’s energy supply and more than half of its electricity generation. Nonrenewable sources of energy like natural gas and petroleum make up a majority, at 35.7% and 38.7% respectively, but private and public organizations are working to shrink the disparity. Renewable energy in Canada primarily comes from hydropower plants the country has established on its vast system of rivers. Quebec generates the most renewable energy of any province — 40,000 MW on hydropower alone, according to the Government of Canada.
Now, the expanding renewable energy industry is poised to make energy more affordable, fight unemployment, and strengthen diplomatic relationships between Canada and other countries.
How Renewable Energy in Canada Can Make Energy More Affordable
Renewable energy is the cheapest form of energy available. It is cheaper to build infrastructure for and generate power than nonrenewable sources. This remains true even without the government-provided subsidies that companies which businesses in the nonrenewable energy industry typically receive.
In recent years, Canada has committed to subsidizing renewables after signing the Paris Agreement, which set a goal for countries around the world to eventually become carbon neutral.
Currently, energy in Canada is the most expensive in the provinces and territories that are the most impoverished. Nunavut has the second priciest electricity — costing $0,37.5 per kilowatt in 2021. No official reports on poverty exist for Nunavut, but the Canadian government concluded that the residents of Nunavut live in some of the poorest conditions and 37% of households there struggled with food insecurity.
Nunavut is largely made up of scattered, remote and scarcely populated communities. This combined with difficult geography makes it challenging to build centralized energy infrastructure. Thus, most people living in Nunavut rely on expensive diesel power generators and burning fuel oil to power and heat their homes.
Renewable energy has shown some promise in Nunavut. Hydropower provides a third of the energy available in the territory. On average, hydropower costs around $0.80 per kilowatt, which is nearly five times less expensive than the average energy bill.
Currently, most people in Nunavut are not able to take advantage of cheaper renewable options because there are no regional or territorial energy grids in the territory. Still, indigenous groups are fighting to bring renewable energy to their communities and make energy more affordable.
Recently, the Canadian government approved grants to provide $1.6 million to indigenous-led projects that will build solar panels, geothermal heating technology and energy storage infrastructures in remote Nunavut villages.
The Economic Advantages of Expanding Renewable Energy in Canada
The focus on renewable energy in Canada also opens new opportunities for Canadian businesses to grow and expand in international trade.
Due to historical success and $200 million from the government, businesses are constantly emerging in the Canadian renewable energy sector. One such company is the Ontario-based NRStor Inc., which builds energy storage devices for renewables. The company has most notably worked on the Oneida Energy Storage Project, alongside the Six Nations of the Grand River. The project could save Canadians $760 million and be the largest battery energy storage facility in Canada.
The Canadian government reports that Indigenous Canadians are more likely to live in poverty than other groups in the country. This project will create internship, training and employment opportunities for Canada’s indigenous community, according to Six Nations Future.
The exporting of renewable energy internationally is an important source of profit for many of these companies. In 2014, renewable energy companies made $13 billion. Currently, clean fuels like ethanol and biodiesel are the most profitable products. However, there is variety among the hundreds of companies within the Canadian renewable energy industry. As these businesses succeed, they create new jobs and those in poverty can find work.
The Political Advantages of Expanding Renewable Energy in Canada
The expanding renewable energy sector strengthens international relationships between Canada and other countries through the importing and exporting of resources and devices needed to build renewable energy plants.
Recently, the Canadian Government announced hopes to export hydrogen to Germany to help replace Russian oil considering tensions caused by the conflict in Ukraine. The government wants to decrease Russia’s influence on Western Europe and push the international community to further embrace renewables.
The U.S. sees Canada as a major export opportunity for its machining industry because renewable energy plants require many different pieces of machinery to work. Trade between the U.S. and Canada within the renewable energy sector has already led to a memorandum of understanding that removed tariffs on solar technology, establishing the groundwork for future trade deals and partnerships.
Ultimately, renewable energy in Canada could be a key component in the country’s fight against poverty going forward, providing a new avenue for safety, opportunity and security to the country’s most vulnerable citizens.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-18 01:30:142022-08-18 00:49:30Renewable Energy in Canada
The World Food Programme (WFP) Somalia developed the WFP e-Shop to combat food insecurity in Somalia where 4.1 million people were in need of food assistance in 2021. The online food-ordering e-Shop fights food insecurity using a delivery system that helps those facing hunger in Somalia access nutritious, affordable food.
Food Insecurity in Somalia
The food insecurity crisis in Somalia has only worsened in recent years, with COVID-19 threatening to double the number of people suffering from acute hunger in just one year alone. Some of the causes of this troubling trend include:
Conflict.Armed conflict in 2021 led to the displacement of women and girls in Somalia, making it difficult to access basic necessities including food.
Climatic shocks. Extreme weather patterns such as drought and flooding have resulted in widespread crop damage. In addition, Somalia endured a desert locust infestation that depleted the remaining crops and pasture in 2019 and significantly reduced food availability.
COVID-19. The COVID-19 pandemic reduced remittances due to global lockdowns, ultimately slowing food production and increasing rates of food insecurity.
Russia-Ukraine war. “Nearly all the wheat sold in Somalia comes from Ukraine and Russia, which have halted exports through the Black Sea since Moscow waged war on its neighbor on Feb. 24,” AP reports.
WFP Intervention
The WFP estimated that if the rainy season fails, Somalia could suffer from famine by the middle of 2022. A quarter of a million lives were lost when the last famine hit Somalia in 2011. To prevent another crisis, the WFP scaled up its emergency food and nutrition response to reach 3 million people. However, there is a large relief funding gap of $192 million, which means the organization has less than a third of the funding it needs to save lives.
A Technical Response
Trying out a new approach, the WFP in Somalia decided to go technical and launch the WFP e-Shop in 2018, a digital food assistance system. First, users can download the WFP e-Shop on a mobile device. Then, the app enables users to receive food vouchers to shop online from local grocery stores. In 2020, the WFP added a feature that delivers food purchases on the e-Shop to users’ homes. The e-Shop fights food insecurity in five major Somalian cities– Hargeisa, Mogadishu, Kismayo, Baidoa and Galkayo.
The e-Shop app is especially useful in light of the COVID-19 pandemic. During social distancing, online ordering and delivery helped Somalians obtain food while still following protocols. That way, Somalians facing food insecurity can be safe and remain well-fed at the same time. Speaking on the benefits of the e-Shop app during COVID-19, one WFP beneficiary remarked, “It has changed many things in my life such as bringing the food into our houses due to precautions taken for coronavirus, so I am very grateful.” Thus, the e-Shop fights food insecurity in a way that is amenable to changing conditions.
Two years after the launch of the e-Shop, the app completed more than 43,000 successful deliveries with more than 90,000 registered users and 1,100 retailers, according to CTG. More importantly, though, the e-Shop app has greatly empowered local communities and economies. With 100% of the proceeds from the platform going to local businesses, the local economy benefits and bolsters up in the fight against food insecurity. Ultimately, as the innovative WFP e-Shop fights food insecurity, the flexibility and profitability of the app are crucial to changing the tide of the food crisis in Somalia.
Electric vehicles are quickly gaining traction all across the globe. Consumers are recognizing that battery-powered engines are not only good for the environment but can also save them money in the long run. Major automobile producers are taking note, with corporations like General Motors saying they will produce only electric vehicles by the 2030s. This emerging market seems to be a win-win for both consumers and producers. However, the largest benefactor of the shift to electric vehicles may not be producers or consumers, but instead Latin America. Here is how electric vehicles are driving growth in Latin America.
Foreign Direct Investment
Every major recipient country in Latin America saw foreign direct investment (FDI) rise in 2021, with the majority of this growth being tied to the mining and energy sectors. This is because Latin America contains some of the world’s largest deposits of cobalt and lithium, two mandatory ingredients of the lithium-ion batteries that power electric vehicles. In fact, Latin America contains the “lithium triangle” of Bolivia, Argentina and Chile where the highest lithium concentrations in the world are found.
The Problem
Despite these vast stores of valuable minerals, many Latin American countries have been unable to capitalize on them thus far. Cobalt and lithium can be difficult to mine and store. Lithium, for example, takes 12-18 months of filtration after bringing the mineral to the surface before extraction can occur, according to Lithium Congress. While this process isn’t very capital intensive, researchers estimate it could take nearly 500,000 gallons of water per ton of lithium extracted. In one Chilean region, lithium mining resulted in the region losing 65% of its water.
For some rural communities, this simply isn’t feasible without outside investment in infrastructure. Additionally, mining these materials poses serious health and safety risks to miners, civilians and the environment. In the United States, chemical leakage from lithium mining affects fish 150 miles downstream from a lithium mining operation, according to Lithium Congress. In order to extract these resources in a safe manner, this industry needs long-term infrastructural investment and new technology. Fortunately, due to the increase in popularity of electric vehicles, this investment is starting to flow into the region, developing new technologies to make the process safer.
Chile
Chile, one of the countries in the “lithium triangle” received a 32% increase in its FDI from 2020, bringing its total investment to $13 billion, according to UNCATD. However, not everyone celebrates this investment. Lithium mining in Chile has already placed a heavy burden on its fragile ecosystem. Many citizens are wary of investments that could increase this burden. Entire rivers are beginning to dry up in Chile due to excessive water waste from lithium mining. Without proper intervention, lithium mining is posing a direct threat to the indigenous communities across Chile that rely on natural water sources for agriculture.
Clearly, Chile needs a new mining method. Fortunately, KMX Technologies and CleanTech are teaming up to bring their proprietary Direct Lithium Extraction technology to the country’s mines. This technology could be able to minimize a mining operation’s environmental footprint, address water and other resource scarcity and make mining operations more efficient.
Argentina
Argentina contains the second largest lithium reserves in the world, but like Chile, it has had trouble capitalizing on these reserves. However, this is likely to change soon. Chinese corporation Ganfeng Lithium agreed to construct a $600 million lithium plant that solar panels power entirely. This project could create 100,000 jobs in the country.
Job creation is critical for Argentina. In 2021, the country posted an unemployment rate of 10.9%, a figure well below the OECD average of 5.7% in the same year. Construction on the mine started in June 2022 and while no expected completion date has been announced, the expected production from this mine is an astounding 20,000 tons of lithium chloride per year.
Brazil
In Brazil, relaxed rules on lithium exporting could draw $2.76 billion in FDI by 2030. The majority of this expected investment is predicted to go to one of Brazil’s poorest regions, the state of Minas Gerais. Approximately 1.21 million people in Minas Gerais are multidimensionally poor. The largest concentration of the multidimensionally poor in the state of Minas Gerais lives in the more rural northern regions of the state. This same area is where the largest lithium deposits in Brazil are found, along the Jequitinhonha Rivervalley. Large-scale investment into lithium mining has the potential to completely transform this region and Brazil’s emphasis on sustainable development for Lithium projects adds a layer of protection for civilians in that area.
Lithium and cobalt mining has the potential to transform Latin American economies. While the two minerals can and have created problems for mining countries in the past, an increase in electric vehicle demand is driving corporations to solve these problems. In doing so, electric vehicles are also driving growth in Latin America, making mining cheaper, more effective, and safer. The FDI rushing into Latin America due to lithium and cobalt demand could not only transform the mining sector but most of the economy. This level of investment necessitates infrastructural investment, creates long-term jobs and could foster a competitive business environment.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-17 07:30:542024-06-04 01:18:03Driving Growth: Electric Vehicles in Latin America
About half of the population in Afghanistan faces food insecurity. With food and fertilizer costs on the rise, organizations such as The World Food Programme (WFP) and the World Bank are dedicating themselves to sending remittances to Afghanistan by boosting crop production for local farmers with a budget of over $200 million.
The Situation
According to a recent Integrated Food Security Phase Classification (IPC) study, around 19.7 million people, about half of the population in Afghanistan are food insecure. This means that they are unable to provide food for themselves on a day-to-day basis. These people are suffering mainly due to food prices reaching new highs and an increase in the cost of producing agricultural materials, especially fertilizer.
The IPC dates back to January and February 2022. In actuality, “the report predicts that the outlook of June-November 2022 sees a slight improvement in the food security situation, with a reduction in the number of people facing acute food security to 18.9 million.”
To combat this, The Afghanistan Emergency Food Security Project plans to boost the production of crops in order to benefit local farmers in Afghanistan. With help from the Food and Agricultural Organization, (FAO) and The World Bank, a $195 million emergency project has emerged, according to U.N. News.
This project plans to ensure “critical life-saving and livelihood assistance to smallholder farmers.” This reduction is largely thanks to the upcoming wheat harvest that will take place from May to August.
Planned Project
There is hope regarding the current remittance to Afghanistan. According to Mary-Ellen McGroarty, the country Director Representative in Afghanistan of the WFP, the largest food operation was established in August 2021 and assisted over 16 million people. “We are working with farmers, millers and bakeries, training women and creating jobs to support the local economy…Allowing the economy to function normally is the surest way out of the crisis, otherwise suffering will grow where crops can not,” she said to WFP.
According to U.N. News, “It is a historic moment for poor farmers in Afghanistan, and it represents an important milestone in our collective efforts to deliver results at scale… and make real transformative differences in the lives of vulnerable people,” said QU Dongyu, the director of FAO. FAO’s funding for remittance to Afghanistan is supporting about 2 million people during the November and March-November 2023 cultivation seasons.
Also, FAO plans on supporting the needs of children, people with illness and women-led households. The goal is to provide seeds and other necessary tools for gardening and the kitchen combined with training on improving nutrition and nutrition habits. “Secondly, the project will increase access to water for irrigation, while improving soil and water conservation,” U.N. News reports.
WFP has helped more than 16 million people since 2021 by providing remittances to Afghanistan. The organization has granted food to locations across the north of the country in an effort to help the communities there that are cut off during harsh snow storms.
Future Outlook
Both McGroarty and WFP are proud of the achievements that have been made thus far but admitted that the need for assistance amounts to $220 million in order to adequately assist the people of Afghanistan. According to the latest surveys performed by WFP, “an estimated 98% of Afghans are not consuming enough food- a worrisome 17% rise since August 2021.”
Due to increasing the costs of food and fertilizer, half of Afghanistan’s population faces food insecurity. Organizations such as the World Bank and the WFP are dedicating themselves to the people of Afghanistan with a $200 million budget to increase the production of crops and ensure the continuing function of the country’s economy.
Inflation is one of the most significant problems in the world right now, as the global inflation rate rises to 6.7% in 2022, almost double the average of the last decade. This is a consequence of the Russian-Ukrainian war and the effects of the ongoing COVID-19 pandemic. Venezuela, which is one of the most in-need countries in South America has finally come out of one of the longest bouts of hyperinflation in the world after 12 consecutive months of the inflation rate rising below 50%, however, three in four people in the country still lived below the poverty line in 2021. The United States and other major players can still do a lot to help the country and curbing inflation in Venezuela is one of the many solutions necessary to improve poverty and economic stability in the country.
Mounting Challenges in Venezuela
In 2016, Venezuela entered a streak of hyperinflation which is when the rate of inflation increases by more than 50% for 12 consecutive months. In 2022, Venezuela has been able to pull itself out of this downward slide pretty simply. The country ramped up printing money in 2016, which became a real issue at the end of 2017 and caused the recent inflation. This has even been a problem in the United States because innately the more currency circulating, the less each piece of currency will be worth. That, along with deficit spending created one of the worst inflation crises in the world.
The solution to this problem appeared to be just as simple as the cause because as soon as the central government of Venezuela decided to stop printing so much money, the inflation rate eased. Although inflation has been on the decline, poverty has still been on the uptick rising to 76% in 2020. Even though these two statistics would seem to be contradictory there are reasons why simply curbing the inflation in Venezuela is not the end all be all.
Solutions
Curbing inflation in Venezuela is only the first step in a long line in order to help the situation in the country. In June 2022, the U.S. announced more than $314 million in aid to help stabilize Venezuela and the rest of that South American region.
These funds will go to multiple countries and aim to improve education and provide COVID-19 relief along with aid for other basic human needs. These funds will also go toward an effort to help potential migrants leaving the country, fleeing in an attempt to find better financial stability. They will also improve access to health care, which has been a challenge for people to access in Venezuela. As many as 5.4 million people have left the country in 2022 because of the unstable economy.
These funds ensure these people can have safe and productive new lives after leaving the country. Venezuelans will receive access to life-saving humanitarian programs like emergency shelters and obtain health care which has been difficult to access because of Venezuela’s own health care system. The International Rescue Committee (IRC) provided health care to more than 100,000 Venezuelans between 2020 and 2022, and since 2017, the U.S. has donated nearly $2 billion in total to Venezuela and the surrounding region. The humanitarian aid provided to the country has already done a lot to improve the lives of those living there and those attempting to leave. Curbing inflation in Venezuela is a step in the right direction.
Looking Ahead
The inflation crisis is severely affecting the entire world including Venezuela. People are having to leave the countries they call home in search of refuge and the possibility of a better life. A person’s displacement is a life-altering event that can change how they live forever. As more and more countries join in the fight to help Venezuela, hope exists that it will have a bright future.
Droupadi Murmu is the first-ever tribal woman to become president in India. Murmu belongs to the Santhal tribe of Odisha, which is India’s third-largest scheduled tribe (socio-economically disadvantaged group). Murmu started as a teacher before beginning her political career as a legislator in 2000 and again in 2009. The candidate then elevated her political career to become the first-ever female governor of the state, Jharkhand, in 2015 and held that position until 2021. Making history, Murmu’s political astuteness helped her spear through the 2022 presidential elections with approximately 68% of the votes. Her rise to the presidency highlighted the struggles of many marginalized communities in India.
In a 2020 interview on the show ‘Ek Mulakat’, Murmu stated, “I come from the poorest of poor families and never expected I will take up politics.” Murmu also stated that “I come from a society that is very rigid when it comes to perceptions about women and they would raise questions about any woman stepping outside the confines of their homes.”
Poverty In Tribal India
In India, five out of six impoverished people are from lower tribes or castes. For many tribes, ownership and access to forests and land are critical to their way of life. On the other hand, the rapid urbanization in India is proving difficult for tribal communities to do so as amendments to legislation including the Santhal Pargana Tenancy Act, which protected the rights of tribal land, weakened their claims to their lands. As such, development projects in the past decade have displaced millions of Indians and 40% of the displaced were indigenous people as their poverty makes them easy prey for moneylenders, exploiters and traders.
Displaced indigenous people in urban areas often live in slums. In particular, women are disproportionately more affected. They are faced with domestic violence as men in households become alcoholics. Women also face health conditions that take a toll due to a lack of family planning and child spacing capabilities, many women do not have autonomy over their reproductive healthcare. The women have little opportunity to gain employment, forcing them to seek work in unorganized sectors, which are not regulated by the government, as wage laborers or even prostitutes.
Additionally, the lack of infrastructure and sanitation negatively impacts the livelihoods of tribal India. In Jharkhand, tribal populations do not have access to piped water because of the lack of proper infrastructure and the process of getting piped connections is too complex for poor communities to follow. Tribal women in Kashmir also can’t afford sanitary pads during their periods, highlighting the case of period poverty in tribal India.
India’s Future With Droupadi Murmu
Murmu’s ascension to the presidency is a trailblazer for tribal communities across India. In the districts of Alluri Sitaramaraju and Anakapalli, representatives of tribes assembled under the leadership of Professor Murru Mutyala Naidu in June to support the victory of Murmu.
Years before her political career kick-started, Murmu fought for her rights as an indigenous woman by convincing a local lawmaker to sponsor her education since higher education provisions were not available in her native village. Murmu then worked as an assistant in the State Irrigation and Power Department from 1979 to 1983.
During her political career in 2017, Governor Murmu made the bold decision to stand her ground against the controversial amendments to the Chotanagpur Tenancy Act and the Santhal Pargana Tenancy Act, both of which restricted the rights of indigenous people. She asked how these amendments would benefit her state’s tribal population and forwarded 192 petitions against the amendments to the Chief Minister of Jharkhand, highlighting her ardent advocacy of tribal welfare.
A Look Ahead
With Droupadi Murmu earning her spot as the 15th president of India, she can be a catalyst for change for many tribal communities, which have long been neglected in India. While it may be challenging to reverse the government policies that restrict the rights of indigenous people, Droupadi Murmu’s rise from her poverty-stricken past to one of the highest government posts in India can empower and signify the inclusion of many tribal members.
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg00Jennifer Philipphttps://borgenproject.org/wp-content/uploads/borgen-project-logo.svgJennifer Philipp2022-08-17 01:30:152022-08-16 01:57:16Droupadi Murmu: First Female Tribal President of India
Food, Fuel and Finance Crisis in Sri Lanka
Desperation and Unrest in Sri Lanka
Countries all over the world, both developed and developing have experienced the economic and social shocks of the pandemic and the war in Ukraine. Many nations are fearing a looming recession, poor health care resources amidst the pandemic and a slowing job market. For developing countries, this means a nearly complete depletion of food, energy, economic stability and COVID-19 response.
The U.N. found that three months of consistent heightened inflation have caused around 71 million people to fall into poverty. The citizens of many developing countries, including Sri Lanka are turning to public political turmoil out of desperation.
Since the end of June, Sri Lanka has been experiencing one of the worst fuel shortages in history. The demand for fuel is so high and the supply is so low that people often have to wait in line for over two days to fill their tanks. One woman said that she spends more than half of her income on fuel.
The Sri Lankan government has demanded that anyone who can must work remotely, schools have been shut down and public transportation services are almost completely stopped, according to The Business Standard. The country has essentially come to a complete standstill.
This fuel crisis comes alongside a prolonged economic catastrophe in Sri Lanka, in which citizens have been facing severe shortages of medicine and inflation that has skyrocketed to 55%. Sri Lankans are also experiencing governmental uncertainty, as their president resigned after a series of protests. The food, fuel and finance crisis in Sri Lanka also comes from a history of debt defaulting and account deficits. Sri Lanka’s economy and exports have been unstable since the 1980s and they are now crumbling as a result of the war in Ukraine, The Business Standard reports.
The Crisis in Sri Lanka is Apart from a Larger Trend
The crisis in Sri Lanka is an indicator of a more widespread food, fuel, and financial crisis that is seriously harming many low-income countries. The U.N. Office for the Coordination of Humanitarian Affairs is claiming that the war in Ukraine is causing a wave of rising prices for essential commodities – food, fuel, medicine and energy – that are plunging millions into a standard of living crisis. The crisis put in danger about 1.6 billion people in 94 countries.
In the Middle East and North Africa, the livelihoods of 2.8 million people are threatened by this crisis and over 500 million people in Asia are exposed to the food and finance crisis, according to the U.N.
International Organizations Attempt to Break the Cycle of Crisis
International organizations like the U.N. and the International Monetary Fund (IMF) are not ignoring the crisis in Sri Lanka and other countries, but they are not doing enough to help either. In order to avoid further civil unrest and slow the growing numbers of people experiencing extreme poverty, international organizations could focus on multilateral investments that pay more in capital and are focused specifically on targeted lending and crisis response measures, the U.N. reports.
The U.N. has employed its Global Crisis Response Group to administer targeted cash transfers directly to the affected countries as a form of direct aid.
Going Forward Amidst a Global Crisis
There has been widespread suffering globally due to the COVID-19 pandemic and the war in Ukraine. However, low-income and developing countries are experiencing record-breaking levels of hunger and lack of resources. The Secretary General of the U.N. believes that solving the global crisis is not possible without first paying attention to the economic crisis in developing countries.
People in low-income countries are in desperate need of food, economic support, fuel and adequate health care. Hopefully, international organizations and high-income countries can step in and help.
– Ella DeVries
Photo: Flickr
All You Need to Know About Poverty in Mexico
Corruption, Security and Justice
Mexico is not a poor country. As of 2020, it has the 15th largest economy in the world and until recently had the largest economy in Latin America. However, 15 individuals hold 13% of Mexico’s wealth and corruption is rampant across all sectors. As a result, Mexico invests less money into public services due to bribes and misallocation of resources into unproductive activities and inefficient policies. This has led to the rich getting richer and the poor getting poorer.
In fact, Transparency International outlines that “corruption is the most regressive tax in the country and a direct obstacle to the access to the most basic services for development,” Huff Post reports. This plays a key role in the rising levels of poverty in Mexico.
On top of this, in Mexico wealth is not distributed evenly, with those living in rural areas receiving less. They have little access to infrastructure or social support. The most extreme examples of this are Chiapas and Oaxaca, with poverty rates over 60%.
In addition to rising levels of poverty, people’s quality of life is also impacted by the fact that 93% of all crimes go unreported in Mexico. Crime has multiplied due to Mexican law enforcement agencies failing to hold people accountable.
The growth of drug cartels and petty crime has led to greater political instability and affected economic growth. As a result of this, 12 million Mexicans now work through the black market without the protection of social security. These individuals are often exploited. The number in this situation is only increasing.
To help support the poor, The Hunger Project has set up a scheme that advocates and creates partnerships between municipalities in Mexico. The aim is to create self-reliant communities.
Since 2020, this has already seen success in Oaxaca. Some examples of this are The Hunger Project setting up backyard orchards in seven municipalities, introducing rainwater harvesting systems and installing ecological toilets. This has helped to deal with the issues of health care and education outlined below. The more awareness and opportunities that are introduced like this, the more people could get chances like Juana’s.
Health Care and COVID-19
As a result of corruption and instability, public institutions in Mexico fail to live up to the standards necessary to ensure people’s health and well-being. From 2012 to 2014, those with access to health care decreased by 3.5 million.
Consequently, families are likely to have more children, leading to less investment in each child. This means children develop fewer skills. As a result, families are more likely to stay in poverty. The added pressures of COVID-19 have made the situation worse, explaining the increased rates of poverty in recent years.
Moreover, 30% of the population experience nutritional problems as they cannot afford basic food items. This leads to underdevelopment in children and a higher mortality rate. As a result, human capital in Mexico is lacking.
While unemployment is high, where people do secure work, they are often weak and uneducated, leading to lower productivity. This has reduced economic growth, resulting in higher levels of poverty in Mexico.
Education
COVID-19 has also decreased access to education. Education was already limited, with only 62% of Mexican children reaching high school. This limits the opportunities for those in poverty, amplifying the divide between the rich and poor.
Furthermore, those living in rural areas have even less access to education meaning the uneven distribution of wealth in these areas is only increasing. Lack of skills and qualifications also means that many poor people cannot find jobs, resulting in extreme poverty levels of up to nearly 20% across the country.
Juana was lucky. From everything you need to know about poverty in Mexico, there is hope for a better future through schemes such as The Hunger Project. A self-reliant population could reduce the issues of elitism and corruption. Economic growth could prosper and poverty could decrease if this campaign continues. This could give Mexico the opportunity to renovate its infrastructure and institutions.
– Reuben Cochrane
Photo: Flickr
Land Conservation and the Displacement of African Tribes
Conservation Exiles Tribes from their Homes
As global efforts are underway to protect and conserve nearly 30% of the world’s land by 2030, experts are raising concerns, suggesting that the expansive and unethical “land grab” would not only be the largest in history but also would lead to the estimated displacement of nearly 300 million people–most of whom are Indigenous.
For example, the Baka forest pygmy tribe of southeast Cameroon, Africa, near Nki National Park lost the right to hunt or fish on lands the tribe has used for generations. Without legal access to their forest, the tribe suffers a loss of livelihood, even though their hunting reportedly does not negatively impact the environment.
And the Baka is not alone. Many other African tribes are suffering at the expense of conservation. These include the Sengwer tribe of Kenya. Its 5,000 hunters suffer from a 1964 ban that stops them from returning to their ancestral forests. The San Bushmen in Kalahari Desert, Botswana, lost their lands to mining and tourism. The Ogiek of Kenya lost rights to the Mau forest.
Also, while wildlife reserves offer employment and opportunity to local communities, their benefit may be exaggerated. There are many documented cases of abuse against the Indigenous people who live there.
Indigenous Tribes Benefit the Land
Not only does the displacement of African tribes hurt Indigenous communities, but it also may not help and may even hurt the land itself. For example, the Rainforest Foundation – United Kingdom (RFUK) documented that while conservation efforts in the Congo Basin totaled hundreds of millions of dollars over ten years, there is little to no evidence that protected areas are actually protecting biodiversity. Elephant and gorilla populations have declined drastically despite substantial funding for patrolling, anti-poaching and ecotourism.
On the other hand, there is evidence that Indigenous tribes do benefit the land. A 2022 study by the Asia Indigenous Peoples Pact found that Indigenous Peoples offered strategies and traditions benefiting the fight against extreme weather patterns and supporting the overall improvement and sustained health of the lands they inhabit. Additionally, Indigenous lands offer critical biodiversity and sustainability practices, which experts emphasize should be at the forefront of decision-making when governments create conservation and climate change policies, laws and strategies.
Strategies for Harmony of Land and People
For this reason, as conservation efforts move forward throughout the world, many look to strategies that allow Indigenous peoples to remain and have access to and foster their land. Such strategies include ways to reverse the damages of the displacement of African tribes.
As Dr. Grace Lara Souza, a political ecology activist from Kings College in London, emphasizes, “any conservation initiative that does not include Indigenous Peoples and Local Communities in its design, implementation and management, should be called into question.” She and other like-minded advocates suggest a community-based conservation model that empowers Indigenous people to oversee the protected lands rather than removing them from their ancestral grounds. When protected land is left without community monitors, miners, loggers and hunters often invade and destroy the ecosystem.
Since the year 1968, the International Work Group for Indigenous Affairs (IWGIA) has committed to “protecting, promoting and defending the rights of Indigenous peoples” across several regions, including Africa. To achieve this, the IWGIA partners with Indigenous peoples’ organizations across Africa. For example, the IWGIA partners with the Rwanda association for Indigenous people (CAURWA) to combat economic, social and political discrimination toward the Batwa people, hunter-gatherers who are the smallest Rwandan ethnic group. Together CAURWA and IWGIA advocate to apply existing land rights legislation to the Batwa.
Looking Forward
Organizations including IWGIA and activists including Dr. Souza offer hope to Indigenous people and their ancestral grounds. In Africa, their campaigns simultaneously improve conservation efforts and reverse the displacement of Indigenous African tribes.
– Michelle Collingridge
Photo: Flickr
Africa’s Beauty Industry is Booming with Potential
Africa’s Burgeoning Youth and Urbanization
High fertility rates coupled with lower mortality rates have led to Africa having the world’s youngest population. About 70% of sub-Saharan Africa’s population is less than 30 years old. Beauty and personal care products are favored by a younger demographic, who want to invest in fashion trends and their looks. This gives Africa the perfect leverage to boost its beauty and cosmetics industry.
It is estimated that by 2025, 45% of Africa’s population will be living in urban areas. According to McKinsey & Company, “per capita consumption spending in large cities in Africa is on average 79% higher at the city level than at the national level.”
Furthermore, as the country continues to develop, there is a shift from spending in informal markets (e.g., roadside stalls) to spending in more formal sectors, such as department stores, supermarkets, etc, according to Brookings. This is boosting beauty product sales.
Higher Purchasing Power
Over the last three decades, Africa’s middle class has tripled in size. By 2025, roughly 65% of African households will be earning more than $5,000, according to McKinsey & Company.
The increase in the number of people in the “discretionary spending income bracket” is likely to result in consumers increasing their spending on luxury items. This shift may also be due to a growing sense of personal hygiene among people and realizing the significant role that products such as soap, shampoo, etc. play in it. Africa’s beauty industry may help customers to realize and fulfill their body care goals.
It is no surprise that Africa’s beauty industry mainly caters to and is dominated by women. Greater access to education and high-paying jobs have increased the disposable income of African women. According to Beauty Africa, “…a significant chunk of [their] spending goes to the beauty and personal care products.”
Growth of E-Commerce
The GSM Association projects that by 2025, 615 million sub-Saharan Africans will subscribe to mobile services, 28% will have a 4G connection and 3% will have a 5G connection.
This will allow consumers to make electronic payments. In fact, mobile money “is growing five times faster in Africa than in any other region,” according to McKinsey & Company.
The evolution of e-commerce and fintech has made purchasing beauty products faster and easier. Additionally, technological advancements allow companies to better track market trends and profile customers, according to The Exchange.
Key Market Players
Nigeria’s beauty industry is attracting foreign direct investment because of its growing modern, fashion-conscious, female population. Her Imports, a U.S.-based hair-extension company, opened an outlet in Lagos, Nigeria in 2014. Patrick Terry, the CEO, said that their products were “performing sensationally in Africa,” according to Africa Business Pages.
According to The Guardian, the projected income for Her Imports from Africa “topped $100 million.”
South Africa is also a key market player. Between 2020-2025, it is expected that 53% of the market growth in Africa’s beauty industry will come from South Africa.
Many international companies are only now realizing Africa’s untapped potential. On May 27, 2022, global pop star Rihanna launched her beauty line, Fenty, in “South Africa, Botswana, Ghana, Kenya, Namibia, Nigeria, Zambia and Zimbabwe.” The launch of this premium brand comes as great news for African women who wanted a better representation of their skin tones.
Infrastructure and Poverty Alleviation Projects Helping
Infrastructure helps connect supply-demand chains, allows goods and services to move easily across borders and enhances overall efficiency in the production and consumption system. Improved infrastructure in the beauty and personal care industry not only generates more employment but also hikes up the sector’s growth rate, according to The Exchange. This increase in growth in turn attracts more investments for additional upgrades in infrastructure. This forms a continuous cycle that ultimately boosts the economic growth of Africa’s beauty industry.
Poverty alleviation projects could help people climb to the middle-income group and have greater purchasing power. Also, closing the gender gap and providing more women with education and equal opportunities could help them to earn income and spend it on the beauty and cosmetics market.
More private investment, advanced technology, improved infrastructure and greater contributions to poverty alleviation projects could help expand Africa’s beauty industry while keeping in line with United Nations Sustainable Development Goals and the African Union’s Agenda 2063.
– Anushka Raychaudhuri
Photo: Flickr
Renewable Energy in Canada
Now, the expanding renewable energy industry is poised to make energy more affordable, fight unemployment, and strengthen diplomatic relationships between Canada and other countries.
How Renewable Energy in Canada Can Make Energy More Affordable
Renewable energy is the cheapest form of energy available. It is cheaper to build infrastructure for and generate power than nonrenewable sources. This remains true even without the government-provided subsidies that companies which businesses in the nonrenewable energy industry typically receive.
In recent years, Canada has committed to subsidizing renewables after signing the Paris Agreement, which set a goal for countries around the world to eventually become carbon neutral.
Currently, energy in Canada is the most expensive in the provinces and territories that are the most impoverished. Nunavut has the second priciest electricity — costing $0,37.5 per kilowatt in 2021. No official reports on poverty exist for Nunavut, but the Canadian government concluded that the residents of Nunavut live in some of the poorest conditions and 37% of households there struggled with food insecurity.
Nunavut is largely made up of scattered, remote and scarcely populated communities. This combined with difficult geography makes it challenging to build centralized energy infrastructure. Thus, most people living in Nunavut rely on expensive diesel power generators and burning fuel oil to power and heat their homes.
Renewable energy has shown some promise in Nunavut. Hydropower provides a third of the energy available in the territory. On average, hydropower costs around $0.80 per kilowatt, which is nearly five times less expensive than the average energy bill.
Currently, most people in Nunavut are not able to take advantage of cheaper renewable options because there are no regional or territorial energy grids in the territory. Still, indigenous groups are fighting to bring renewable energy to their communities and make energy more affordable.
Recently, the Canadian government approved grants to provide $1.6 million to indigenous-led projects that will build solar panels, geothermal heating technology and energy storage infrastructures in remote Nunavut villages.
The Economic Advantages of Expanding Renewable Energy in Canada
The focus on renewable energy in Canada also opens new opportunities for Canadian businesses to grow and expand in international trade.
Due to historical success and $200 million from the government, businesses are constantly emerging in the Canadian renewable energy sector. One such company is the Ontario-based NRStor Inc., which builds energy storage devices for renewables. The company has most notably worked on the Oneida Energy Storage Project, alongside the Six Nations of the Grand River. The project could save Canadians $760 million and be the largest battery energy storage facility in Canada.
The Canadian government reports that Indigenous Canadians are more likely to live in poverty than other groups in the country. This project will create internship, training and employment opportunities for Canada’s indigenous community, according to Six Nations Future.
The exporting of renewable energy internationally is an important source of profit for many of these companies. In 2014, renewable energy companies made $13 billion. Currently, clean fuels like ethanol and biodiesel are the most profitable products. However, there is variety among the hundreds of companies within the Canadian renewable energy industry. As these businesses succeed, they create new jobs and those in poverty can find work.
The Political Advantages of Expanding Renewable Energy in Canada
The expanding renewable energy sector strengthens international relationships between Canada and other countries through the importing and exporting of resources and devices needed to build renewable energy plants.
Recently, the Canadian Government announced hopes to export hydrogen to Germany to help replace Russian oil considering tensions caused by the conflict in Ukraine. The government wants to decrease Russia’s influence on Western Europe and push the international community to further embrace renewables.
The U.S. sees Canada as a major export opportunity for its machining industry because renewable energy plants require many different pieces of machinery to work. Trade between the U.S. and Canada within the renewable energy sector has already led to a memorandum of understanding that removed tariffs on solar technology, establishing the groundwork for future trade deals and partnerships.
Ultimately, renewable energy in Canada could be a key component in the country’s fight against poverty going forward, providing a new avenue for safety, opportunity and security to the country’s most vulnerable citizens.
– Ryan Morton
Photo: Flickr
WFP E-Shop Fights Food Insecurity in Somalia
Food Insecurity in Somalia
The food insecurity crisis in Somalia has only worsened in recent years, with COVID-19 threatening to double the number of people suffering from acute hunger in just one year alone. Some of the causes of this troubling trend include:
WFP Intervention
The WFP estimated that if the rainy season fails, Somalia could suffer from famine by the middle of 2022. A quarter of a million lives were lost when the last famine hit Somalia in 2011. To prevent another crisis, the WFP scaled up its emergency food and nutrition response to reach 3 million people. However, there is a large relief funding gap of $192 million, which means the organization has less than a third of the funding it needs to save lives.
A Technical Response
Trying out a new approach, the WFP in Somalia decided to go technical and launch the WFP e-Shop in 2018, a digital food assistance system. First, users can download the WFP e-Shop on a mobile device. Then, the app enables users to receive food vouchers to shop online from local grocery stores. In 2020, the WFP added a feature that delivers food purchases on the e-Shop to users’ homes. The e-Shop fights food insecurity in five major Somalian cities– Hargeisa, Mogadishu, Kismayo, Baidoa and Galkayo.
The e-Shop app is especially useful in light of the COVID-19 pandemic. During social distancing, online ordering and delivery helped Somalians obtain food while still following protocols. That way, Somalians facing food insecurity can be safe and remain well-fed at the same time. Speaking on the benefits of the e-Shop app during COVID-19, one WFP beneficiary remarked, “It has changed many things in my life such as bringing the food into our houses due to precautions taken for coronavirus, so I am very grateful.” Thus, the e-Shop fights food insecurity in a way that is amenable to changing conditions.
Two years after the launch of the e-Shop, the app completed more than 43,000 successful deliveries with more than 90,000 registered users and 1,100 retailers, according to CTG. More importantly, though, the e-Shop app has greatly empowered local communities and economies. With 100% of the proceeds from the platform going to local businesses, the local economy benefits and bolsters up in the fight against food insecurity. Ultimately, as the innovative WFP e-Shop fights food insecurity, the flexibility and profitability of the app are crucial to changing the tide of the food crisis in Somalia.
– Sarah DiLuzio
Photo: Flickr
Driving Growth: Electric Vehicles in Latin America
Foreign Direct Investment
Every major recipient country in Latin America saw foreign direct investment (FDI) rise in 2021, with the majority of this growth being tied to the mining and energy sectors. This is because Latin America contains some of the world’s largest deposits of cobalt and lithium, two mandatory ingredients of the lithium-ion batteries that power electric vehicles. In fact, Latin America contains the “lithium triangle” of Bolivia, Argentina and Chile where the highest lithium concentrations in the world are found.
The Problem
Despite these vast stores of valuable minerals, many Latin American countries have been unable to capitalize on them thus far. Cobalt and lithium can be difficult to mine and store. Lithium, for example, takes 12-18 months of filtration after bringing the mineral to the surface before extraction can occur, according to Lithium Congress. While this process isn’t very capital intensive, researchers estimate it could take nearly 500,000 gallons of water per ton of lithium extracted. In one Chilean region, lithium mining resulted in the region losing 65% of its water.
For some rural communities, this simply isn’t feasible without outside investment in infrastructure. Additionally, mining these materials poses serious health and safety risks to miners, civilians and the environment. In the United States, chemical leakage from lithium mining affects fish 150 miles downstream from a lithium mining operation, according to Lithium Congress. In order to extract these resources in a safe manner, this industry needs long-term infrastructural investment and new technology. Fortunately, due to the increase in popularity of electric vehicles, this investment is starting to flow into the region, developing new technologies to make the process safer.
Chile
Chile, one of the countries in the “lithium triangle” received a 32% increase in its FDI from 2020, bringing its total investment to $13 billion, according to UNCATD. However, not everyone celebrates this investment. Lithium mining in Chile has already placed a heavy burden on its fragile ecosystem. Many citizens are wary of investments that could increase this burden. Entire rivers are beginning to dry up in Chile due to excessive water waste from lithium mining. Without proper intervention, lithium mining is posing a direct threat to the indigenous communities across Chile that rely on natural water sources for agriculture.
Clearly, Chile needs a new mining method. Fortunately, KMX Technologies and CleanTech are teaming up to bring their proprietary Direct Lithium Extraction technology to the country’s mines. This technology could be able to minimize a mining operation’s environmental footprint, address water and other resource scarcity and make mining operations more efficient.
Argentina
Argentina contains the second largest lithium reserves in the world, but like Chile, it has had trouble capitalizing on these reserves. However, this is likely to change soon. Chinese corporation Ganfeng Lithium agreed to construct a $600 million lithium plant that solar panels power entirely. This project could create 100,000 jobs in the country.
Job creation is critical for Argentina. In 2021, the country posted an unemployment rate of 10.9%, a figure well below the OECD average of 5.7% in the same year. Construction on the mine started in June 2022 and while no expected completion date has been announced, the expected production from this mine is an astounding 20,000 tons of lithium chloride per year.
Brazil
In Brazil, relaxed rules on lithium exporting could draw $2.76 billion in FDI by 2030. The majority of this expected investment is predicted to go to one of Brazil’s poorest regions, the state of Minas Gerais. Approximately 1.21 million people in Minas Gerais are multidimensionally poor. The largest concentration of the multidimensionally poor in the state of Minas Gerais lives in the more rural northern regions of the state. This same area is where the largest lithium deposits in Brazil are found, along the Jequitinhonha River valley. Large-scale investment into lithium mining has the potential to completely transform this region and Brazil’s emphasis on sustainable development for Lithium projects adds a layer of protection for civilians in that area.
Lithium and cobalt mining has the potential to transform Latin American economies. While the two minerals can and have created problems for mining countries in the past, an increase in electric vehicle demand is driving corporations to solve these problems. In doing so, electric vehicles are also driving growth in Latin America, making mining cheaper, more effective, and safer. The FDI rushing into Latin America due to lithium and cobalt demand could not only transform the mining sector but most of the economy. This level of investment necessitates infrastructural investment, creates long-term jobs and could foster a competitive business environment.
–Benjamin Brown
Photo: Flickr
Remittance to Afghanistan
The Situation
According to a recent Integrated Food Security Phase Classification (IPC) study, around 19.7 million people, about half of the population in Afghanistan are food insecure. This means that they are unable to provide food for themselves on a day-to-day basis. These people are suffering mainly due to food prices reaching new highs and an increase in the cost of producing agricultural materials, especially fertilizer.
The IPC dates back to January and February 2022. In actuality, “the report predicts that the outlook of June-November 2022 sees a slight improvement in the food security situation, with a reduction in the number of people facing acute food security to 18.9 million.”
To combat this, The Afghanistan Emergency Food Security Project plans to boost the production of crops in order to benefit local farmers in Afghanistan. With help from the Food and Agricultural Organization, (FAO) and The World Bank, a $195 million emergency project has emerged, according to U.N. News.
This project plans to ensure “critical life-saving and livelihood assistance to smallholder farmers.” This reduction is largely thanks to the upcoming wheat harvest that will take place from May to August.
Planned Project
There is hope regarding the current remittance to Afghanistan. According to Mary-Ellen McGroarty, the country Director Representative in Afghanistan of the WFP, the largest food operation was established in August 2021 and assisted over 16 million people. “We are working with farmers, millers and bakeries, training women and creating jobs to support the local economy…Allowing the economy to function normally is the surest way out of the crisis, otherwise suffering will grow where crops can not,” she said to WFP.
According to U.N. News, “It is a historic moment for poor farmers in Afghanistan, and it represents an important milestone in our collective efforts to deliver results at scale… and make real transformative differences in the lives of vulnerable people,” said QU Dongyu, the director of FAO. FAO’s funding for remittance to Afghanistan is supporting about 2 million people during the November and March-November 2023 cultivation seasons.
Also, FAO plans on supporting the needs of children, people with illness and women-led households. The goal is to provide seeds and other necessary tools for gardening and the kitchen combined with training on improving nutrition and nutrition habits. “Secondly, the project will increase access to water for irrigation, while improving soil and water conservation,” U.N. News reports.
WFP has helped more than 16 million people since 2021 by providing remittances to Afghanistan. The organization has granted food to locations across the north of the country in an effort to help the communities there that are cut off during harsh snow storms.
Future Outlook
Both McGroarty and WFP are proud of the achievements that have been made thus far but admitted that the need for assistance amounts to $220 million in order to adequately assist the people of Afghanistan. According to the latest surveys performed by WFP, “an estimated 98% of Afghans are not consuming enough food- a worrisome 17% rise since August 2021.”
Due to increasing the costs of food and fertilizer, half of Afghanistan’s population faces food insecurity. Organizations such as the World Bank and the WFP are dedicating themselves to the people of Afghanistan with a $200 million budget to increase the production of crops and ensure the continuing function of the country’s economy.
– Henry Hyman
Photo: Flickr
Curbing Inflation in Venezuela
Mounting Challenges in Venezuela
In 2016, Venezuela entered a streak of hyperinflation which is when the rate of inflation increases by more than 50% for 12 consecutive months. In 2022, Venezuela has been able to pull itself out of this downward slide pretty simply. The country ramped up printing money in 2016, which became a real issue at the end of 2017 and caused the recent inflation. This has even been a problem in the United States because innately the more currency circulating, the less each piece of currency will be worth. That, along with deficit spending created one of the worst inflation crises in the world.
The solution to this problem appeared to be just as simple as the cause because as soon as the central government of Venezuela decided to stop printing so much money, the inflation rate eased. Although inflation has been on the decline, poverty has still been on the uptick rising to 76% in 2020. Even though these two statistics would seem to be contradictory there are reasons why simply curbing the inflation in Venezuela is not the end all be all.
Solutions
Curbing inflation in Venezuela is only the first step in a long line in order to help the situation in the country. In June 2022, the U.S. announced more than $314 million in aid to help stabilize Venezuela and the rest of that South American region.
These funds will go to multiple countries and aim to improve education and provide COVID-19 relief along with aid for other basic human needs. These funds will also go toward an effort to help potential migrants leaving the country, fleeing in an attempt to find better financial stability. They will also improve access to health care, which has been a challenge for people to access in Venezuela. As many as 5.4 million people have left the country in 2022 because of the unstable economy.
These funds ensure these people can have safe and productive new lives after leaving the country. Venezuelans will receive access to life-saving humanitarian programs like emergency shelters and obtain health care which has been difficult to access because of Venezuela’s own health care system. The International Rescue Committee (IRC) provided health care to more than 100,000 Venezuelans between 2020 and 2022, and since 2017, the U.S. has donated nearly $2 billion in total to Venezuela and the surrounding region. The humanitarian aid provided to the country has already done a lot to improve the lives of those living there and those attempting to leave. Curbing inflation in Venezuela is a step in the right direction.
Looking Ahead
The inflation crisis is severely affecting the entire world including Venezuela. People are having to leave the countries they call home in search of refuge and the possibility of a better life. A person’s displacement is a life-altering event that can change how they live forever. As more and more countries join in the fight to help Venezuela, hope exists that it will have a bright future.
– Alexander Peterson
Photo: Flickr
Droupadi Murmu: First Female Tribal President of India
In a 2020 interview on the show ‘Ek Mulakat’, Murmu stated, “I come from the poorest of poor families and never expected I will take up politics.” Murmu also stated that “I come from a society that is very rigid when it comes to perceptions about women and they would raise questions about any woman stepping outside the confines of their homes.”
Poverty In Tribal India
In India, five out of six impoverished people are from lower tribes or castes. For many tribes, ownership and access to forests and land are critical to their way of life. On the other hand, the rapid urbanization in India is proving difficult for tribal communities to do so as amendments to legislation including the Santhal Pargana Tenancy Act, which protected the rights of tribal land, weakened their claims to their lands. As such, development projects in the past decade have displaced millions of Indians and 40% of the displaced were indigenous people as their poverty makes them easy prey for moneylenders, exploiters and traders.
Displaced indigenous people in urban areas often live in slums. In particular, women are disproportionately more affected. They are faced with domestic violence as men in households become alcoholics. Women also face health conditions that take a toll due to a lack of family planning and child spacing capabilities, many women do not have autonomy over their reproductive healthcare. The women have little opportunity to gain employment, forcing them to seek work in unorganized sectors, which are not regulated by the government, as wage laborers or even prostitutes.
Additionally, the lack of infrastructure and sanitation negatively impacts the livelihoods of tribal India. In Jharkhand, tribal populations do not have access to piped water because of the lack of proper infrastructure and the process of getting piped connections is too complex for poor communities to follow. Tribal women in Kashmir also can’t afford sanitary pads during their periods, highlighting the case of period poverty in tribal India.
India’s Future With Droupadi Murmu
Murmu’s ascension to the presidency is a trailblazer for tribal communities across India. In the districts of Alluri Sitaramaraju and Anakapalli, representatives of tribes assembled under the leadership of Professor Murru Mutyala Naidu in June to support the victory of Murmu.
Years before her political career kick-started, Murmu fought for her rights as an indigenous woman by convincing a local lawmaker to sponsor her education since higher education provisions were not available in her native village. Murmu then worked as an assistant in the State Irrigation and Power Department from 1979 to 1983.
During her political career in 2017, Governor Murmu made the bold decision to stand her ground against the controversial amendments to the Chotanagpur Tenancy Act and the Santhal Pargana Tenancy Act, both of which restricted the rights of indigenous people. She asked how these amendments would benefit her state’s tribal population and forwarded 192 petitions against the amendments to the Chief Minister of Jharkhand, highlighting her ardent advocacy of tribal welfare.
A Look Ahead
With Droupadi Murmu earning her spot as the 15th president of India, she can be a catalyst for change for many tribal communities, which have long been neglected in India. While it may be challenging to reverse the government policies that restrict the rights of indigenous people, Droupadi Murmu’s rise from her poverty-stricken past to one of the highest government posts in India can empower and signify the inclusion of many tribal members.
– Samyukta Gaddam
Photo: Wikimedia Commons
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