Argentina’s informal peso, its ”dolar blue,” weakened drastically at the end of October 2021 and hit its all-time inflation high. The country’s risk rating increased by 19 points. The economic downturn arrived weeks before Argentina’s November 2021 elections, and economic improvement is long overdue.
What is the Dolar Blue?
The “Dolar Blue” is the unofficial rate of buying or selling physical United States dollars (USD) in an unofficial financial market in exchange for Argentine pesos. The transactions occur without the assistance of a banking institution or government oversight. Many transactions for Argentina’s informal peso occur right in storefronts or in the street.
In October 2021, the exchange rate hit 195 pesos per one USD. The exchange rate is typically greatly valued because this trade rate results in more pesos to the dollars for tourists and vice versa for those looking to use pesos.
In 2019, the Argentine peso lost value during an economic crisis due to suspending debt payments while the debt continues to climb for Argentina. The government had to act quickly to stabilize the peso. Since then, the Argentine government has slowly placed restrictions on the dolar blue to prevent any weakening of the formal peso.
What is a Country’s Risk Rating?
A risk rating is the measurement of the potential for non-payments on international loans that companies made to companies within the country being rated or to the countries themselves. It is the measurement to see how close a country is to defaulting on loans. Typically, the factors that lead to an increased risk rating are out of a countries’ control. However, the risk rating is the calculated risk that international businesses would undertake when dealing with the measured country. The higher the number, the greater the chances of business deals collapsing.
As Reuters reported, the risk rating for Argentina expanded 19 points when Argentina’s informal peso reached its all-time high of 1,672. It is essentially Argentina’s credit rating, but the higher the number, the lower the chance for foreign investment opportunities. This new risk rating could lead international companies or loan businesses to avoid working in Argentina or setting up loans there.
Without additional investment, the job market could have few opportunities to develop new jobs. There is little chance that unemployment rates could decrease.
Why Did this Economic Crash Happen and What Does this Mean for Argentina?
The two main factors causing the current economic crash are the country’s upcoming elections and growing inflation. The majority of surveyed Argentineans’ stated that their largest concern was the economy. Argentina has a history of economic downturn during periods of change in political leadership and growing economic fears. Argentina’s informal peso and formal peso have fallen in the past during periods similar to what the nation is experiencing now.
The drop in Argentina’s informal peso means economic growth has stagnated once again. Financial experts predicted Argentina’s impending devaluation of its formal currency, which appears to have started with the devaluation of its informal peso. With the devalued informal peso, battling inflation rates, four out of 10 Argentines live in poverty and have few means of escape.
Argentineans in poverty are struggling with the prices of necessities and with inflation. This is impacting both formal and informal pesos and the outlook is dour, according to The New York Times. Argentina’s informal peso brought tourists and new businesses to the country to support local Argentine companies and operations. With a destabilized and devalued the informal peso, more Argentineans are at risk of losing income. The devaluation of Argentina’s informal peso and widening country risk signals a long way to go before returning to a stable economy.
Is the Outlook Truly Grim?
The outlook is not entirely dismal. As grim as things look for Argentina economically, there are ways forward with the devalued informal peso.
In September 2021, Argentina reported economic growth. The poverty rate decreased slightly, which came as a pleasant surprise to many. In the first half of 2021, the poverty rate decreased to 42% and shows signs of continuing to decrease. Many did not expect the growth, given the difficulties of the COVID-19 pandemic. However, the growth signals that there is a chance for improvement despite the downturn of the peso and the risk rating.
In the weeks following the elections, the economy is likely to stabilize again. After the 2019 election, while the pesos’ exchange rates were still higher than average, they stabilized briefly. However, the recovery was short-lived due to the COVID-19 pandemic. Since then, the economy has struggled to restabilize. In the days since the COVID-19 pandemic first impacted Argentina, the economy has been slowly stabilizing and working towards recovery.
After the 2021 November elections, there is a good chance for economic recovery and stabilization. Argentina’s informal peso could recover and the risk rating could decrease. The economy could revitalize with new business and partnerships.
Support for Argentina
Argentina has faced economic issues for several years, but they are not alone and receive help from many organizations, including The Working World (TWW). Brendan Martin founded TWW after witnessing the result of the Argentinean economic difficulties. The efforts on the ground that individuals made to start businesses and launch democratically operated businesses boosted the economy, and TWW decided to continue supporting this trend.
TWW works by partnering with businesses interested in furthering their workers’ rights to make decision-making processes more equitable. The organization designs loan packages to give the loans to pre-set projects that are in the hands of workers and repayment requires minimal interest.
TWW is a registered nonprofit organization in both the United States and Argentina. It understands the various currencies in Argentina, the exchange rates and the impacts both have on the Argentine economy.
Around the time TWW formed in Argentina and began democratizing businesses and stabilizing the workforce, the informal and formal peso stabilized in the exchange rates. Since then, TWW has expanded operations to more countries to transplant these business models and provide job security in countries. One example is Nicaragua or areas hit that hurricanes hit in the U.S. while maintaining some operations in Argentina.
TWW’s work has been invaluable in stabilizing the economy and workforce. The economic difficulties that inflation and political instability caused are manageable, largely because of nongovernmental organizations like The Working World.
– Clara Mulvihill
Photo: Unsplash
How Improving Financial Literacy Helps Reduce Poverty
Financial literacy plays a significant role in reducing poverty and improving financial well-being. The low financial literacy rate in developing countries means cycles of poverty continue, often intergenerationally. However, improving financial literacy rates in developing countries through education can help create pathways out of poverty, improving the financial standing and economic stability of low-income individuals.
What is Financial Literacy?
The Asian Development Bank Institute defines financial literacy as “people’s understanding of financial concepts as well as their skills and ability to manage money and make informed financial decisions.” The financial literacy level of an individual typically influences their financial judgment and resulting actions. Thus, the stability of one’s finances is often dependent upon one’s financial literacy level.
Why Financial Literacy Matters
Financial literacy offers many benefits to a consumer regardless of their level of income. For example, if an individual is financially well-informed, the individual is less likely to make decisions that will harm their finances rather than improve them.
Furthermore, financial literacy encourages people to pay bills on time, increases preparedness for economic difficulties and allows people to avert significant debt. Those who are well-educated on financial concepts are also very likely to set aside savings and pass on financial knowledge to their children.
Poverty-stricken individuals may benefit the most from financial literacy as their economic standing makes them less likely to successfully recover from an economic setback without adequate financial knowledge. This makes smart financial decisions especially important for this population in order to proactively combat any avoidable financial crises. However, despite financial knowledge holding more significance for those with a lower economic status, individuals within this group are less likely to be financially literate.
Financial Literacy in Developing Countries
Financial illiteracy disproportionately affects impoverished developing nations, likely due to a lack of adequate education systems in many of these countries. Data indicates that just 54% of people residing in developing nations have the capability or knowledge to open a bank account and also lack access to banking institutions.
Indonesia provides an example of this concern as a developing nation where financial literacy is a scarcity, and therefore, stands as one of the main barriers to financial inclusion. Data from an Organization for Economic Cooperation and Development (OECD) study indicates that most Indonesians with a low socioeconomic status only have enough financial savings to last seven days in the case of an emergency.
Another example of a country with inadequate financial literacy is Zambia, where approximately half of the population does not utilize any financial services. A survey conducted in South Africa suggests that approximately 60% of respondents lack comprehension of important financial terms such as “interest.” From these statistics, it is apparent that financial literacy is insufficient in several developing countries.
Solutions
As developing nations strive for economic growth and financial products become increasingly complicated, it is imperative to equip people with the knowledge to make economic decisions that are in their best interests. Ultimately, a financially literate population will help stabilize economies in developing countries and contribute to reducing poverty.
The improvement of financial literacy in developing countries will require participation from policymakers, stakeholders, organizations and other important figures. Several of these actors are taking action to support financial literacy in developing nations.
For example, in Indonesia, the Indonesian tech company Tokopedia created the “Rabu Nabung” campaign in 2020, which translates to “Savings Wednesdays.” Purchasing mutual funds through Tokopedia on Wednesdays allows people to amass gift cards and even access cashback rewards for investing in gold. This campaign acts as an incentive for Indonesians to save their money and make investments, thus increasing both financial standing and financial literacy. A study by the University of Indonesia (UI) indicates that roughly “78% of all Tokopedia users surveyed said the program helped them understand the importance of investment.”
Other nations are taking action by implementing financial education programs that target groups with high rates of financial illiteracy. The Bank of Uganda created the second Strategy for Financial Literacy in Uganda 2019-2024, focusing on five major groups: women, the working class, youth, those that reside in rural areas and special interest groups. This program will give individuals a better understanding of savings, investments, managing their money and other important financial components.
Moving Forward
A person’s ability to understand and apply financial concepts plays a key role in their economic decisions. Financial literacy benefits the individual while contributing to long-term economic stability. Thus, improving financial literacy in developing nations is crucial to achieving growth in the financial sector. By enacting various programs and campaigns to empower individuals to make financially sound choices, developing nations should see economic advancement in the future.
– River Simpson
Photo: Unsplash
Argentina’s Informal Peso Hit New Low
Argentina’s informal peso, its ”dolar blue,” weakened drastically at the end of October 2021 and hit its all-time inflation high. The country’s risk rating increased by 19 points. The economic downturn arrived weeks before Argentina’s November 2021 elections, and economic improvement is long overdue.
What is the Dolar Blue?
The “Dolar Blue” is the unofficial rate of buying or selling physical United States dollars (USD) in an unofficial financial market in exchange for Argentine pesos. The transactions occur without the assistance of a banking institution or government oversight. Many transactions for Argentina’s informal peso occur right in storefronts or in the street.
In October 2021, the exchange rate hit 195 pesos per one USD. The exchange rate is typically greatly valued because this trade rate results in more pesos to the dollars for tourists and vice versa for those looking to use pesos.
In 2019, the Argentine peso lost value during an economic crisis due to suspending debt payments while the debt continues to climb for Argentina. The government had to act quickly to stabilize the peso. Since then, the Argentine government has slowly placed restrictions on the dolar blue to prevent any weakening of the formal peso.
What is a Country’s Risk Rating?
A risk rating is the measurement of the potential for non-payments on international loans that companies made to companies within the country being rated or to the countries themselves. It is the measurement to see how close a country is to defaulting on loans. Typically, the factors that lead to an increased risk rating are out of a countries’ control. However, the risk rating is the calculated risk that international businesses would undertake when dealing with the measured country. The higher the number, the greater the chances of business deals collapsing.
As Reuters reported, the risk rating for Argentina expanded 19 points when Argentina’s informal peso reached its all-time high of 1,672. It is essentially Argentina’s credit rating, but the higher the number, the lower the chance for foreign investment opportunities. This new risk rating could lead international companies or loan businesses to avoid working in Argentina or setting up loans there.
Without additional investment, the job market could have few opportunities to develop new jobs. There is little chance that unemployment rates could decrease.
Why Did this Economic Crash Happen and What Does this Mean for Argentina?
The two main factors causing the current economic crash are the country’s upcoming elections and growing inflation. The majority of surveyed Argentineans’ stated that their largest concern was the economy. Argentina has a history of economic downturn during periods of change in political leadership and growing economic fears. Argentina’s informal peso and formal peso have fallen in the past during periods similar to what the nation is experiencing now.
The drop in Argentina’s informal peso means economic growth has stagnated once again. Financial experts predicted Argentina’s impending devaluation of its formal currency, which appears to have started with the devaluation of its informal peso. With the devalued informal peso, battling inflation rates, four out of 10 Argentines live in poverty and have few means of escape.
Argentineans in poverty are struggling with the prices of necessities and with inflation. This is impacting both formal and informal pesos and the outlook is dour, according to The New York Times. Argentina’s informal peso brought tourists and new businesses to the country to support local Argentine companies and operations. With a destabilized and devalued the informal peso, more Argentineans are at risk of losing income. The devaluation of Argentina’s informal peso and widening country risk signals a long way to go before returning to a stable economy.
Is the Outlook Truly Grim?
The outlook is not entirely dismal. As grim as things look for Argentina economically, there are ways forward with the devalued informal peso.
In September 2021, Argentina reported economic growth. The poverty rate decreased slightly, which came as a pleasant surprise to many. In the first half of 2021, the poverty rate decreased to 42% and shows signs of continuing to decrease. Many did not expect the growth, given the difficulties of the COVID-19 pandemic. However, the growth signals that there is a chance for improvement despite the downturn of the peso and the risk rating.
In the weeks following the elections, the economy is likely to stabilize again. After the 2019 election, while the pesos’ exchange rates were still higher than average, they stabilized briefly. However, the recovery was short-lived due to the COVID-19 pandemic. Since then, the economy has struggled to restabilize. In the days since the COVID-19 pandemic first impacted Argentina, the economy has been slowly stabilizing and working towards recovery.
After the 2021 November elections, there is a good chance for economic recovery and stabilization. Argentina’s informal peso could recover and the risk rating could decrease. The economy could revitalize with new business and partnerships.
Support for Argentina
Argentina has faced economic issues for several years, but they are not alone and receive help from many organizations, including The Working World (TWW). Brendan Martin founded TWW after witnessing the result of the Argentinean economic difficulties. The efforts on the ground that individuals made to start businesses and launch democratically operated businesses boosted the economy, and TWW decided to continue supporting this trend.
TWW works by partnering with businesses interested in furthering their workers’ rights to make decision-making processes more equitable. The organization designs loan packages to give the loans to pre-set projects that are in the hands of workers and repayment requires minimal interest.
TWW is a registered nonprofit organization in both the United States and Argentina. It understands the various currencies in Argentina, the exchange rates and the impacts both have on the Argentine economy.
Around the time TWW formed in Argentina and began democratizing businesses and stabilizing the workforce, the informal and formal peso stabilized in the exchange rates. Since then, TWW has expanded operations to more countries to transplant these business models and provide job security in countries. One example is Nicaragua or areas hit that hurricanes hit in the U.S. while maintaining some operations in Argentina.
TWW’s work has been invaluable in stabilizing the economy and workforce. The economic difficulties that inflation and political instability caused are manageable, largely because of nongovernmental organizations like The Working World.
– Clara Mulvihill
Photo: Unsplash
Domestic Violence Against Women in Venezuela
The fight to reduce domestic violence against women in Venezuela still needs improvement. In the past few decades, the country has faced severe political turmoil. The COVID-19 pandemic further exacerbated the violence women in Venezuela face. In most cases, women still have to rely on their domestic abusers for financial support. Currently, the country still presents many challenges and obstacles for women to obtain justice against their attackers. Recognizing the dire need for changes, domestic and international non-governmental organizations (NGOs) are working hard to protect Venezuelan women’s rights and safety. Here are some NGOs leading the fight for reducing domestic violence against women in Venezuela.
Centro de Justicio y Paz (Cepaz)
Cepaz is a nongovernmental organization that works to promote democratic values, human rights and the culture of peace in Venezuela. The idea was born in a context that a great institutional crisis and generalized violence characterized. Cepaz focuses on the empowerment of citizens and women, activism networks and promotion of the culture of peace in the country. The organization aims to reduce violence against Venezuelan women by developing specialized work for vulnerable demographics. With its combined program in Human Rights and Humanitarian Action, the organization serves women victims of gender violence.
It accompanies grassroots women in impoverished areas to boost their leadership and awareness of rights. Cepaz is also supporting them in the generation of organizational processes that generate well-being. It provides assistance in the community in areas such as water, food, violence, sexual and reproductive health, among others. Through these works, Cepaz hopes to educate the country to recognize the immense danger Venezuelan women are facing due to domestic violence and gender inequality.
Prepara Familia
Prepara Familia is a nongovernmental organization committed to serving women and families. It is contributing to the construction of a solidary and a fairer society, as well as accompanying the defense and awareness of women’s rights. It began as a grassroots organization, working hand in hand with doctors, family members and children hospitalized at the J.M de los Ríos Hospital. Since its foundation, Prepara Familia has worked intensively for the rights of mothers, children and teenagers. The organization develops training and empowerment programs for Women Caregivers in the hospital and assists women who have suffered domestic violence. Through their works, the organization hopes to reduce violence against Venezuelan women and aid those in need.
Tinta Violeta
Tinta Violeta is a feminist nongovernmental organization that aims to use artistic expressions, such as the media and cinema, as mobilization tools. The organization seeks to mainstream feminism in all communication content and cultural discourses in Venezuela. Tinta Violeta wants to create a Venezuela with gender equality and free of domestic violence against women. Providing psychological and legal help the organization also accompanies the victim to the police station or the Prosecutor’s Office to file the complaint. Volunteers from Tinta Violeta have offered their own homes as safe houses and often listened to all those Venezuelan women that get in touch with them through their website, as well as their Facebook and Instagram accounts.
FundaMujer
FundaMujer is a nongovernmental organization that seeks to create a safe space for feminist leaders to discuss and advocate for gender equality and reducing violence against women in Venezuela. Created when the aggravated situation regarding violence affecting women in Venezuela has escalated, FundaMujer supports the protection of women’s rights defenders. It is monitoring any threat against feminist organizations or women’s groups and providing security for any individual who is at risk. The organization also promotes the right of women to a life free of domestic violence. It mobilizes national and international resources to support women. FundaMujer holds local, regional and national authorities accountable for any violation of women’s rights.
Together, these four NGOs are all fighting for reducing domestic violence against women in Venezuela in addition to efforts made by the government. Through these combined efforts, domestic violence against women in Venezuela has substantially declined and women’s rights have continued to strengthen.
– Tri Truong
Photo: Flickr
COVID-19 Vaccination in Qatar
Located on the waters of the Persian Gulf, Qatar has an estimated COVID-19 vaccination rate of about 87%, administering more than 4.9 million doses to its people. It is a population percentage much higher than a number of other countries, including the United States, where just 59% of U.S. citizens are fully vaccinated.
Statistics
Qatar has fewer than 2.5 million inhabitants, more comparable to U.S. states like New Mexico or Kansas. Additionally, it seems that a higher vaccination rate has made a difference when it comes to the Middle Eastern country’s efforts to fight COVID-19. Cases are currently at around 8% of what Qatar had during its time of peak infections, dating back to May 2020 when there were a reported 2,300 new infections each day.
According to Qatar’s government communications office, the country has reported some 150 new coronavirus cases by late November 2021, with more than 100 of those afflicted ultimately recovering. Since the start of the pandemic, Qatar has reported a total of 242,000 cases, with 239,000 recoveries and 611 deaths.
Qatar’s infection rate has climbed a bit in recent weeks. Additionally, while the country’s efforts are better than some of its neighbors, like Yemen — which had climbed to 11% of its peak before dropping again — Qatar is behind others, including Bahrain, Saudi Arabia, Oman and the United Arab Emirates, which reported between 1% and 2% of their respective peaks.
Bahrain, for example, averages a little more than 20 new infections per day in a recent week, with 87% of the country completely vaccinated. Saudi Arabia has more than 35 new infections each day with 69% fully vaccinated. Oman is averaging about seven new infections daily with a 59% vaccination rate.
The UAE reported just fewer than 80 new infections each day with a vaccination rate of more than 100%. Yet, Yemen has kept its numbers mostly under control — reporting a half-dozen new infections each day despite just a little more than 1% of its population being fully vaccinated.
Precautions
The U.S. has shared with those living or visiting Qatar the precautions the country has implemented since July 2020 to help limit the spread of the coronavirus there. That includes a little bit of technology — a smartphone app called Ehteraz used for contact tracing.
The country also limits the number of people allowed in cars, and how far athletes can travel to participate in sports. Of course, there are requirements for face masks and social distancing. Anyone not abiding by these rules faces stiff fines and potential jail time.
Qatar is currently in what it describes as its fourth phase of reopening, allowing some gatherings and small groups, and the elimination of masks in open public places, except where otherwise required — like in organized public events, schools and mosques.
Currently, the State Department has a travel heath advisory of Level 3 due to the number of COVID-19 cases in the country. It advises anyone entering the country to be fully vaccinated.
Vaccine Distribution
Despite what appears to be high COVID-19 vaccination rates in Qatar, a study published in the National Library of Medicine in May 2021 suggests about 20% of the country’s population does not want the coronavirus vaccine. Surveys occurred in November 2020, before vaccines had received government approvals in many countries, including the United States, and when people were still building knowledge about the safety of the vaccine. The survey involved more than 7,800 adults.
Since then, Qatar has approved the Pfizer vaccine for emergency use and is available to everyone for free. However, the Qatari government recommends those at higher risk — such as the elderly, those with chronic medical conditions, as well as health care workers — are first in line.
COVID-19’s Impact on Qatar’s Economy and People
The effects of COVID-19 have, for obvious reasons, reduced worldwide travel. This has led to OPEC reporting its lowest demand for oil in 30 years. The heaviest impacted sectors of Qatari society include manufacturing, real estate and transportation. Finance and construction also have experienced a moderate impact on Qatar’s expected gross domestic product, according to KPMG International.
How Qatar is Doing its Part
During the Global Vaccine Summit in June 2020, when the coronavirus pandemic was at its worst, Qatar pledged the equivalent of $20 million in U.S. currency to GAVI. GAVI is an international vaccine organization that intends to help underserved countries in the world through the global COVAX initiative.
The money Qatar donated was double its earlier pledge of $10 million that lasted from 2016-2020. The money from 2016-2020 went directly to GAVI with no funding for COVAX. GAVI will distribute the money evenly with $10 million going to funding GAVI’s core programs from 2021-2025 and the other $10 million will help finance the COVAX AMC initiative10.
COVID-19 vaccination in Qatar is at remarkably high levels. The vaccine and other measures still in place in the country have dramatically reduced the number of active and new coronavirus cases in the country to a fraction of their peaks in the summer of 2020.
– Julian Smith
Photo: Unsplash
COVID-19’s Impact on Sierra Leone
Sierra Leone is a nation in recovery. As with many countries throughout the globe, COVID-19 has left a lasting mark on the West African nation. In a June to October 2020 survey that Innovations for Poverty Action in Sierra Leone implemented, nearly 50% of respondents reported income reductions and about 60% of respondents reported depleting their savings to secure food for the household. However, in the wake of COVID-19’s impact on Sierra Leone, some sectors are regaining strength.
The After-Effects of COVID-19
Sierra Leone went into lockdown quickly in response to the initial outbreak of the novel coronavirus within its borders in March 2020, declaring a state of emergency prior to any confirmation of infection. Rapid policy changes followed, restricting travel and putting into place extensive testing programs which, coupled with a high level of social compliance, brought the infection and death rates to an early plateau. This impressive effort in containment came at a great economic cost, however, with the nation’s GDP contracting around 3.1% in 2020.
Revitalizing the Economy
Forecasts predict that Sierra Leone’s GDP will grow roughly 4% by the end of 2021, eclipsing the contraction of 2020, with further acceleration predictions in 2022. This projected growth links to a renewed demand for exports, particularly in the country’s mining sector.
World Bank experts state that sustaining this growth will require structural reform, strong monetary policy and a robust vaccination program, allowing businesses and employees alike to return to full-capacity operations both quickly and safely.
To that end, “the World Bank approved an $8.5 million grant” in June 2021 to further vaccination efforts in Sierra Leone, building upon an earlier $7.5 million monetary injection provided by the International Development Association in 2020 to shore up economic deficits resulting from COVID-19’s impact on Sierra Leone. Additionally, The Sierra Leone Central Bank announced a redenomination of the national currency in an effort to combat inflation. However, not all efforts for economic regrowth fall within the confines of the financial sector.
US Assistance
Sierra Leone saw a marked increase in poverty as a result of wage depression and job loss stemming from the pandemic, particularly in urban areas. The remediation of economic damages in these areas is an important step in breathing new life into the Sierra Leonean economy.
The Millennium Challenge Corporation (MCC), a U.S. government-funded agency dedicating efforts to international growth and development, is working to do just that. The MCC completed a $44.4 million project “to improve the water and electrical services in and around Freetown,” Sierra Leone’s capital and largest urban center, in March 2021. The MCC has recently begun talks with government representatives and the private sector to make further, larger investments in the nation’s growth in the form of an economic compact.
Further Help for Citizens in Need
In August 2021, the United Nations Development Programme (UNDP) announced a new program specifically focusing on aiding women and youth affected by COVID’s impact on Sierra Leone. The program will provide grants of $60,000 to $140,000 for distribution by NGOs to women and youth-operated businesses in both rural and urban areas that were forced to scale down or cease operations during the pandemic. The aim is to bring these businesses back into the marketplace and stimulate the local economy. These efforts work in concert with Sierra Leone’s internal efforts to help the nation get back onto its feet in the post-pandemic environment.
Mining Sector Leads Growth
With a return to pre-pandemic GDP levels in sight, Sierra Leone hopes to continue growth in 2022. Forecasts predict the nation’s GDP to grow by as much as 5% by 2022, outpacing its sub-Saharan neighbors, which could grow to 1% to 2% less over the same period. The country’s mining sector is a strong driver of the national economy accounting for 3% of national employment in 2018 as well as “65% of export earnings.” The mining sector is on track for a 34% overall increase, led by a predicted 850% increase in demand for iron ore over 2020.
With such a major market component leading the way, other economic areas may expect revitalization as well. In the agricultural sector, employing about two-thirds of Sierra Leone’s workforce, the government encourages mining companies’ investment in communities local to their operations, furthering citizens’ access to food as well as gainful employment. Predictions estimate that the domestic construction and energy industries, both with close links to mining infrastructure, may see growth as well. This combined push for economic renewal assures better days to come for the sub-Saharan nation.
A Bright Future Ahead
Through ongoing foreign support and careful economic measures, Sierra Leone hopes to breathe new life into industries ravaged by COVID-19. With a renewed encouragement of domestic business, the nation looks to bring its citizens forward into a thriving economy and a safer, healthier society. The culmination of these efforts is proving clear less than two years after the nation’s first lockdown with a strong reemergence from the trials of COVID-19’s impact on Sierra Leone, promising a brighter tomorrow for the Sierra Leonean people.
– Alexander Diaz
Photo: Wikipedia Commons
Global Supply Chain Issues in the Developing World
More than half of the global population has received at least one dose of the COVID-19 vaccine. The world is slowly recovering from the devastating effects of the virus. However, a serious post-pandemic symptom has emerged: the global supply chain is struggling. While the supply chain affects the whole planet, there is ample evidence of how global supply chain issues are burdening the developing world.
COVID-19 Measures Slow Down the Supply Chain
COVID-19 prevention measures across the globe have shut down processing plants and restricted transportation. They have included export bans or tight quotas to control supplies and prevent the spread of the virus. These measures have all contributed to disruptions in the global supply chain, which have impacted the developing world in a number of ways. Here are a few examples:
Potential Benefits
Supply chain issues have not entirely punished developing nations. Some developing countries are benefitting, as the prices of their exports continue to skyrocket. For example, major oil exporters in the Middle East have benefitted from rising oil prices, according to The New York Times.
Leaders Look to the Future
Post-pandemic growth can be slow. However, government and private sector world leaders are actively working to speed it up. On October 31, 2021, international leaders met to discuss ways that they could improve the supply chain and make it more resilient in the future.
U.S. President Joe Biden urged for fair labor conditions, the end of trade restrictions and communication.“Now that we have seen how vulnerable these lines of global commerce can be, we cannot go back to business as usual,” the President told Reuters.
– Richard J. Vieira
Photo: Flickr
The “Great Green Wall” Refugee Camp in Cameroon
Refugees in Northern Cameroon have “planted 360,000 seedlings” since 2018 to combat desertification in the Minawao refugee camp. The refugees grew the “Great Green Wall” with help from their host communities, the U.N. and the Lutheran World Federation (LWF). The Dutch Postcode Lottery funded the project with $2.7 million as part of an initiative to plant a continent-wide, 8,000-kilometer barrier of trees to prevent desertification, land degradation and drought. The Great Green Wall now provides ample shade to refugee families in Minawao, allowing them to grow crops and support themselves with a sustainable food supply.
Education and Execution
The Great Green Wall project began with educating the refugees in Minawao on how to plant seedlings using “cocoon technology,” which Land Life Company developed to protect seedlings against harsh environments. Cocoon technology functions by burying water tanks made of recycled cartons in donut shapes around plants’ roots. As a result, the plants have steady access to water, which the plants receive through a string that connects to the water tank. Knowledge of how to plant and sustain seedlings allowed the refugees in Minawao to plant trees in the area without relying too heavily on outside coordinators for help. With the assistance of LWF and the United Nations, the Cameroonian refugees were able to plant a thriving forest to support crops and life in an area that was once bare and dry.
The Wall’s Impact
More than 70,000 refugees have fled to Minawao since 2014 to escape violence from the militant group, Boko Haram, in Nigeria. When the large groups of refugees first arrived in Minawao, the area’s desertification worsened, largely because refugees cut down the few remaining trees in order to survive. The Great Green Wall project committed to addressing deforestation, desertification and land degradation in the area by planting more than 100 hectares, the equivalent of 250 football fields, of trees. Trees from the Great Green Wall project now provide shade, improve soil quality and attract water, all of which improve the quality of life for the refugees living in Minawao.
Development and Sustainability
The next step in the Great Green Wall project is to expand upon its growth and sustainability. The U.N. and LWF are working together to address challenges that arise, in part through reforestation and raising awareness about how the project and planting processes work. LWF has also created a strategy to promote more sustainable energy sources, including eco-friendly briquettes. Briquettes are energy-efficient and pollution-reducing alternatives to firewood. Many women have found new sources of income because of the eco-friendly charcoal, which they sell to refugees and surrounding communities.
The Great Green Wall project is still in progress, but so far, it has provided better living conditions to thousands of refugees in Minawao, Cameroon. Other countries may look to the project as an example of the benefits that arise from addressing desertification in refugee camps. Sustainable reforestation does not only benefit the environment — it can transform communities, offer economic opportunities and improve quality of life.
– Cleo Hudson
Photo: Flickr
4 Countries With Conditional Cash Transfer Programs
Conditional cash transfer (CCT) programs serve as poverty reduction tools. The government provides monetary support to individuals with low incomes on the condition that the individuals meet certain requirements. For example, an individual may receive a cash transfer on the condition that he or she keeps his or her child in school and ensures the child receives all necessary child immunizations. The aim of CCTs is to stop the transmission of poverty from generation to generation, which is why conditions, especially related to healthcare and education, are in place. CCTs have shown success as poverty reduction tools in many countries, especially in regions such as Latin America.
Benefits and Criticisms of Conditional Cash Transfers
A benefit of CCTs is that they allow people to use welfare to meet their specific needs. CCTs empower impoverished communities by giving them the choice, through the provision of cash, of how to use aid to best meet their individual needs. Other welfare programs are able to fulfill a specific need, but they also restrict the voice of impoverished communities to choose how to best fulfill their needs.
Another benefit is that giving individuals money is cheaper than providing people with goods. When paying for goods, the government must also pay for the secondary costs associated with the goods, such as storage and transportation. Therefore, direct cash payments are more cost-effective than programs that distribute goods.
A common concern with CCTs is that recipients will spend the money on alcohol and drugs instead of their basic needs. Researchers have conducted studies to learn more about how recipients spend CCT money and results show that most recipients spend the money on meeting their families’ needs.
4 Countries With Successful Conditional Cash Transfer Programs
The Role of CCTs in Reducing Global Poverty
Conditional cash transfers have gained prominence as a strategy to help impoverished families in real-time while also working to prevent future poverty through the transmission of intergenerational poverty. While CCTs positively impact families in multiple countries, improvements to education and health services must accompany the programs so that children can receive quality education and adequate health care services. Increased participation through CCTs in tandem with improved public services can have a more significant impact on the world’s impoverished than CCTs alone. The combined power of conditional cash transfer programs and public service improvements have the potential to create lasting change globally.
– Anna Ryu
Photo: Flickr
Vietnam’s Gender Equality Reforms in the Workplace
Vietnam’s gender disparities have come under scrutiny in recent years in part because of the global push for gender equality. Despite the nation’s progress in closing the gender gap in both education and labor participation, inequalities still persist. Recognizing this phenomenon, the Vietnamese government recently renewed its Labor Code, reaffirming its commitment to achieving gender parity through gender equality reforms. The reformed Labor Code aims to advance gender equality in the workplace. Vietnam drafted its revamped Labor Code in 2019 to go into effect in 2021. Here are five of its proposed reforms to promote gender equality in the Vietnamese workplace.
5 Gender Equality Reforms in the Vietnamese Workplace
Striving for Gender Equality in Vietnam
By combating gender equality in the workplace, Vietnam has the potential to better its economy while advancing women’s rights. With reforms to improve gender equality, Vietnam aligns with global goals as the fight for equality dominates the global discourse. Aiming to achieve a work-life balance for both men and women dissolves gender stereotypes. Business owners, employers and employees can now rely on a strong legal framework against sexual harassment. More importantly, the adjusted Labor Code empowers women and inspires more female workers to join the workforce. These efforts will inevitably help advance gender equality in Vietnam.
– Tri Truong
Photo: Unsplash
New COVID-19 Antiviral Pill Brings Hope to the Developing World
The developing world is fighting for greater access to lifesaving COVID-19 vaccines and therapeutics. If regulatory bodies approve it, a new COVID-19 antiviral pill called molnupiravir could bring relief in the next year because it would be affordable, easy to distribute and easy to administer. Approval is all but guaranteed, however, several NGOs and manufacturers are jumping into high gear to help ensure equitable access to the drug throughout the world.
The Current Situation
No nation, no matter how wealthy, is exempt from the heartache and struggle that COVID-19 brought. According to the World Health Organization (WHO), COVID-19 has led to the deaths of more than five million people worldwide. In addition to the many lives lost, the disease caused by the novel coronavirus, SARS-CoV-2, has also left many survivors with long-lasting negative health effects. Then, there is the economic toll — experts consider the global economic contraction that the pandemic caused to be the most severe since the aftermath of World War II.
Now, nearly a year after the arrival to the market of the first COVID-19 vaccines, the developed world is wondering if the end is near — if the world can get back to a pre-pandemic sense of normal. However, in the developing world, the end does not appear to be near because many developing countries have yet to gain adequate access to vaccines. For instance, in September 2021, WHO Chief Tedros Adhanom Ghebreyesus said that “more than 5.7 billion COVID-19 vaccine doses have been administered globally, but only 2% of them in Africa.” Africa, however, makes up nearly 16% of the global population, making it clear that the push for vaccine equity must continue.
However, the developing world is now finding some hope in a COVID-19 antiviral pill that a partnership between Merck and Ridgeback Biotherapeutics brought to market. Researchers invented the drug, called molnupiravir, at Emory University with research funding from the U.S. government. In the Phase 3 clinical study, the pill proved efficient in reducing risks of hospitalization and death by 50% in at-risk individuals when administered before symptoms increase in severity. Following these promising outcomes, Merck has applied for Emergency Use Authorization from the U.S. Food and Drug Administration (FDA) so that it can bring this promising COVID-19 antiviral pill to the market as soon as possible.
3 Advantages of Molnupiravir for the Developing World
Improving Production Capacity
There is some concern that ongoing COVID-19-induced supply chain disruptions could interfere with the mass global production capacity of molnupiravir should the disruptions result in inadequate supplies of the base ingredients needed for manufacture. For its part, the Bill and Melinda Gates Foundation has pledged $120 million to help ensure equitable distribution of molnupiravir. Part of the initiative is to fund research to look into the most efficient and streamlined manufacturing methods to maximize the production capacity of the drug. These efforts bring hope that production capacity goals will meet their mark. Only time will tell, but for many in the developing world, molnupiravir may bring COVID-19 relief before vaccines do.
– Jeramiah Jordan
Photo: Wikipedia Commons