On March 1, 2021, Ngozi Okonjo-Iweala took office as the director-general of the World Trade Organization (WTO). She is the first woman and the first African to hold this office. After experiencing the Nigerian Civil War, she came to the U.S. and studied development economics at Harvard University. She also received her doctorate in regional economics and development from the Massachusetts Institute of Technology. In 2003, she served as Nigeria’s finance minister. After a second appointment ending in 2015, she also served as a foreign minister and worked for the World Bank for 25 years, overseeing an $81 billion portfolio. In her newly appointed role, Okonjo-Iweala promises to influence and implement policy in order to restore the global economy.
What is the World Trade Organization?
The World Trade Organization is an international organization that deals with the “rules of trade between nations.” Member governments negotiate trade agreements that are then ratified in their own parliaments. All major decisions are made by the membership as a whole, either by ministers, their ambassadors or delegates.
The WTO plays an important role in reducing global poverty. Studies show that free trade helps impoverished countries “catch up with” developed nations. More than three-quarters of WTO members are developing countries. Every WTO agreement holds particular provisions for these countries, including longer time spans to carry out agreed-upon policies, “measures to increase their trading opportunities” and assistance to support these countries in building the necessary infrastructure to improve their economies. Least-developed countries are often exempt from many provisions.
The WTO also aims to reduce living costs and improve living standards by mitigating the effect of protectionism on consumer costs. This means that products are more affordable for those with a lower income. In addition, lowering such trade barriers stimulates economic growth and employment, creating opportunities for the impoverished to increase their incomes.
Okonjo-Iweala and Poverty
Okonjo-Iweala’s long list of achievements includes many in the realm of poverty reduction. As the minister of finance in Nigeria, she helped Africa’s largest economy “grow an average of 6% a year over three years.” She also helped create “reform programs that improved governmental transparency and stabilizing the economy.”
As the board chair of Gavi, the Vaccine Alliance, she contributed to ensuring vaccine equity. During her 25-year career at the World Bank, she rose to the second-most prominent position of managing director. Okonjo-Iweala ran for the office of director-general of the WTO with the strong belief that trade has the power to lift people out of poverty.
Okonjo-Iweala is also a supporter of COVAX, aiming to resolve vaccine nationalism. During the COVID-19 pandemic, vaccine nationalism is a problem that disproportionately affects impoverished countries. COVAX is a global vaccination effort launched by Gavi and leading partners to ensure vaccine equity.
In a January 2021 article, Okonjo-Iweala writes that “All manufacturers must step up and make their vaccines available and affordable to COVAX,” in order to ensure equitable and timely vaccine distribution to low-income countries. She also warned against repeating history.
In 2009, a small number of high-income countries bought up most of the global supply of the H1N1 flu vaccine, which left the rest of the world lacking. If history were to repeat itself during the COVID-19 pandemic, the impact on impoverished countries, and the world at large, would be devastating.
Okonjo-Iweala’s Plan
As director-general of the WTO, Okonjo-Iweala’s immediate plans focus on ending the COVID-19 pandemic with vaccines for all. In a statement outlining her vision for the future of the WTO, she says “the WTO can and must play a more forceful role in exercising its monitoring function and encouraging Members to minimize or remove export restrictions and prohibition that hinder supply chains for medical goods and equipment.”
She also says that member nations of the WTO need to adopt a stronger stance in preventing vaccine nationalism and protectionism. International cooperation, in her opinion, is the only way to come up with the vaccines, therapeutics and diagnostics needed to put an end to the COVID-19 pandemic.
Okonjo-Iweala has promised to face the economic and health challenges presented by the novel coronavirus head-on. Importantly, she notes that “a strong WTO is vital if we are to recover fully and rapidly from the devastation wrought by the COVID-19 pandemic.” Okonjo-Iweala promises to work in a collaborative effort to “shape and implement the policy responses” necessary to restore the global economy.
– Brooklyn Quallen
Photo: Flickr
What to Know About Poverty in Zimbabwe
Zimbabwe was once a rising economy in Africa, with its mining and agricultural industries propelling the country forward. However, Zimbabweans now struggle with war, internal corruption, hyperinflation and industrial mismanagement. A closer look at the country provides insight into the context of poverty in Zimbabwe.
8 Facts About Poverty in Zimbabwe
Why Poverty is Rampant in Zimbabwe
Since Zimbabwe gained its independence in 1980, its economy has primarily depended on its mining and agricultural industries. Zimbabwe’s mining industry has immense potential as the country is home to the Great Dyke, the second-largest platinum deposit globally. Additionally, Zimbabwe has more than 4,000 gold deposits.
However, the country’s mining sector is inefficient — its gold output dropped 30% in the first quarter of 2021. While illegal gold mining hurts the industry, Zimbabwe’s lax mining licensing laws also allow foreign companies to mine minerals at cheap costs for years on end, leading to a lack of incentive to accelerate mineral production.
Furthermore, the Zimbabwean government’s decision to support the Democratic Republic of the Congo in the Second Congo War drained its bank reserves, alienated its allies and caused the U.S. and the EU to impose sanctions. Subsequently, Zimbabwe’s economy collapsed. As a result, the government began printing more money, leading to widespread hyperinflation of the Zimbabwean dollar.
NGOs Combating Poverty in Zimbabwe
The situation in Zimbabwe is improving. In 2021, Zimbabwe’s GDP could potentially grow by nearly 3% thanks to increased agricultural production, increased energy production and the resumption of manufacturing and construction activities. Unemployment rates will likely continue to decrease. The rebound is primarily due to increased vaccination efforts, with China providing two million doses of COVID-19 vaccines to the country.
In addition, multiple NGOs are fighting poverty in Zimbabwe. For example, Talia’s Women’s Network seeks to end period poverty in the country’s rural areas by helping 250 girls gain access to menstrual products. The project also seeks to provide the girls both with an understanding of the menstrual process and with access to support structures to combat early childhood marriage, gender-based violence and unwanted pregnancies.
Another organization, Action Change, supplies lunch to 400 primary students in Zimbabwe. It also works to break the cycle of poverty by providing resources for education. Zimbabwe spends 93% of the estimated $905 million it allocates toward education on employment costs, leaving only about 7% of the budget for classroom resources. Action Change provides schools with resources such as textbooks.
American Foundation for Children with AIDS helps 3,000 children and guardians who have AIDS by providing them with livestock and food self-sufficiency training. Meanwhile, the organization also provides resources and training to fight food insecurity and ensure that children eat well.
Stimulating the Agriculture Industry
The key to reducing poverty in Zimbabwe is stimulating the country’s agricultural industry. Nearly 66% of Zimbabweans rely on their small farms for survival. However, great inequality in water access exists between the country’s many small farms and few large commercial farms. Equality in water access would increase productivity and income for small farmers. A revitalization of the agricultural sector would spur economic growth and alleviate poverty in Zimbabwe.
Although the country still has barriers to conquer to truly eradicate poverty, it also has immense potential to become an African superpower.
– Matthew Port Louis
Photo: Flickr
5 Facts About Female Genital Mutilation in Niger
5 Facts About Female Genital Mutilation in Niger
There is hope for ending female genital mutilation in Niger. Through the efforts of the community, NGOs and Niger’s government, the practice will continue decreasing. With changing beliefs and laws in place, the culturally entrenched tradition can be eliminated.
– Jake Herbetko
Photo: Flickr
4 Agricultural Tech Startups in India
CropIn by SmartFarm
First, in 2010, CropIn’s founders developed a phone application called SmartFarm to produce profit reports and weather analyses. CropIn also optimizes crop production and digitizes farm ecosystems. Moreover, the company uses artificial intelligence (AI) and the internet of things (IoT) to provide precise and accurate data for farmers using the app. The startup also utilizes other software and applications. SmartRisk, SmartWare and RootTrace are examples that target different facets of the agricultural industry, including food safety and sustainability. The company has had a tremendous impact on India so far. The company has implemented the services of the app on 13 million acres of land and helped four million farmers. Thus, the future of CropIn is hopeful.
DeHaat’s Online Community
In 2012, DeHaat came about. One of its main goals is to provide an online community for farmers in India. DeHaat presents forecast reports, daily crop reminders, inputs on profit maximization, “advice on crops, pests, soil and seeds” and several other agricultural services. By focusing on the needs of farmers, DeHaat aims to increase profitability and productivity to reduce poverty. Furthermore, the company makes accessibility a priority. It offers an application in which global users can communicate and a daily helpline for farmers without smartphones. This startup has helped more than 210,000 farmers in India and expectations determine that it will reach and serve more farmers within the coming years.
Agricultural Tech Startup Fasal
Fasal is a 2018 startup that improves accuracy within farming to increase profitability and eliminate guessing. The company developed an app to continuously monitor farm data, improving accessibility for farmers. Moreover, it created an IoT device called Fasal Sense that monitors the farm and collects data. Through AI, Fasal can deliver “farm-specific, crop-specific, crop-stage specific, actionable advisory.”
The village of Chhattisgarh is a prime example of Fasal’s success, where vegetable farmer Prasant Maroo started using the startup’s technology in 2018. Maroo noticed a 20% increase in production of two of his main crops, chilli and brinjal. By using the AI technology that Fasal provided, he was able to use less water. Water scarcity and over-irrigation are prevalent issues in Indian villages, so this factor is very promising for eliminating resource wastage. Maroo is not the only farmer who has benefited from Fasal. Fasal also allows for irrigation schedule monitoring, forecast alerts and disease management.
Digital Tech Through Intello Labs
Intello Labs began in Gurugram, India. In 2016, the company made a goal to minimize food loss in farming through digital technology. It uses “AI, ML and computer vision” to evaluate food quality in fruits and vegetables, improving the quality of goods that farmers grow, package and sell. Intello Labs developed an app that allows users to take pictures of multiple food items at a time and give feedback on the quality of the items. Users can also selectively pick the individual items desired from a batch of produce, helping to eliminate waste. Overall, the startup is increasing food quality in a cost-efficient manner within the agricultural and food industry.
The Future of India’s Agriculture
In India, farmers and their families’ livelihoods depend on agricultural success. Overall, agricultural tech startups in India, like CropIn, DeHaat, Fasal, Intello Labs and other companies, are allocating resources to yield quality food to the consumer and provide the advantages of technology to farmers in India. With these four new innovative agricultural tech startups in India changing the way the country farms, AI and IoT can supply detailed data to reduce poverty and improve farming.
– Karuna Lakhiani
Photo: Flickr
How SELF Harnesses Solar Energy
Many developing nations struggle with energy poverty, which is defined as “a lack of access to modern energy services.” According to Energypedia, “access to energy is a prerequisite of human development.” Electricity is also essential for the “provision of social services such as education and health.” Energy access also links to the economic growth and development of a nation. The Solar Electric Light Fund (SELF) is a nonprofit organization with a mission of harnessing solar energy to support social and economic development in disadvantaged communities.
Benefits of Solar Power
According to ZenEnergy, the use of solar energy helps to decrease the effects of climate change by reducing fossil fuel reliance, air pollution and water usage. Solar energy does not burn fuel, eliminating the harmful gas emissions that stem from fossil fuel energy production. Additionally, unlike the finite nature of fossil fuels, solar energy is abundant. Furthermore, solar energy does not require water to generate electricity. Solar power is a cost-effective and sustainable renewable energy source that can help reduce energy poverty throughout the world.
Addressing Energy Poverty
SELF implements solar projects to sustainably create energy, which provides for basic human needs and economic development. When SELF was first established in 1990, the organization began by fitting individual home solar-powered systems. However, the company yearned to make a larger impact with more long-term benefits. As a result, SELF adjusted its goals to include the creation of a business model “that could be self-sustained in communities” in developing countries. Thus, the Whole Village Development Model was born.
This “all-encompassing approach” utilizes solar energy from the sun to power entire villages while improving “healthcare, education and food security.” In 2001, SELF celebrated the opening of its first “solar-powered computer lab” in a high school in Maphephethe, South Africa. Due to these solar-powered capabilities, student enrollment at the school increased by 40% and graduation rates rose by close to 15%.
Solar Power in Developing Communities
Although the entire world can benefit from solar energy, impoverished countries are especially targeted to improve air quality and reduce health issues linked to the burning of fuelwood, reports Science Direct. Solar photovoltaic is a type of technology that can provide renewable energy in impoverished communities. This particular solar source eliminates the financial burden of grid extensions. Grid extensions are not viable options in communities with scarce traditional energy sources. For many developing countries, solar energy provides the opportunity for a better life, and, environmental sustainability is a bonus.
Overseeing Vaccine Refrigerators
Among other projects, in partnership with PATH, “an international nonprofit global health organization” located in the U.S. state of Seattle, SELF recently pledged to enlist evaluation teams to ensure vaccine refrigerators are functioning effectively in vaccination sites around Haiti, Bangladesh, Pakistan and the Democratic Republic of Congo. Developing countries often lack proper mechanisms to monitor the efficiency of vaccine refrigerators. The goal of the partnership is to provide this assurance.
Two solar technicians from SELF are responsible for visiting 42 sites in Haiti to evaluate refrigerators on a monthly basis. After a one-year evaluation, SELF analyzes the data and reports on it to the World Health Organization. As inadequate refrigeration can have adverse public health implications, the vaccine cold storage monitoring project is just one example of the important work SELF does to support global communities aside from solar energy projects.
SELF’s Commitment to Disadvantaged Communities
Presently, SELF is working on several different projects with the main objective of improving living conditions in developing countries. Some of its projects include bringing clean water to West Africa as well as expanding micro-grids and providing solar training in Haiti. SELF continues to light up communities in need with new projects and approaches that harness the sustainable power of the sun.
– Jessica Barile
Photo: Flickr
Addressing Homelessness In Sri Lanka
Nestled off the southeastern coast of India, Sri Lanka is a beautiful island country. It has long beaches, beautiful greenery and a rich cultural history, making it a popular tourist destination. Sri Lanka has a population of almost 22 million people and the country boasts a relatively low crime rate. Yet, inside Colombo city and across the country, Sri Lanka has many homeless individuals. Though exact numbers of the homeless population in Sri Lanka are unavailable, 1.5 million Sri Lankans do not own land, a factor that certainly impacts homelessness. The homeless inhabit bus shelters and street corners around Colombo city and are often located in rural regions. Homelessness in Sri Lanka remains one of the most visible forms of poverty in the country.
Poverty and Homelessness
Sri Lanka, a country that was traded between colonial powers like the Dutch and the British, only gained its independence in 1948. Agriculture remains the largest industry, employing anywhere from 25% to more than 35% of the entire population, according to varying estimates. In addition, 80% of the population lives in rural areas, making Sri Lanka one of the top five least urbanized countries.
The Sri Lankan Civil War, which lasted from 1983 to 2009, has had a lasting impact on poverty and land ownership in the country. The conflict displaced thousands of Sri Lankans, many of whom still feel the impacts of the war today.
Land is a valuable resource to those who have it, a fact that more than 1.5 million Sri Lankans living and working without land are well aware of. Legally, those who do not own land lack many basic human rights. Without an address, Sri Lankans cannot claim state welfare assistance. They also cannot send their children to school or vote in national and local elections. Restrictions are placed on activities in homes controlled by landlords, largely because landlords do not have a lot of oversight. The homeless in Sri Lanka, especially the elderly, remain the most vulnerable. Unfortunately, the COVID-19 pandemic has only exacerbated this crisis.
The Good News
In response to the COVID-19 pandemic, Sri Lankan government officials are ensuring the protection of the homeless living in the capital city of Colombo. When the government implemented a curfew in March 2020, many of the homeless remained living on the streets. With the help of local police, more than 300 homeless individuals living in Colombo have been housed in quarantine shelters with food and basic necessities provided for them. Senior deputy inspector general of police for Western Province, Deshabandu Tennakoon, notes that it is not safe for people to be living on the streets with a respiratory virus circulating the globe.
Homelessness in Sri Lanka is a persistent issue that impacts the country. While the COVID-19 pandemic has prompted more awareness, there is a long way to go to eradicate homelessness. Moving forward, the government of Sri Lanka and other humanitarian organizations must make homelessness in Sri Lanka a priority.
– Alex Pinamang
Photo: Flickr
Addressing Period Poverty in Venezuela
Venezuela’s Inflation Crisis
Venezuela’s economy, once rich and booming, has fallen into a crisis over the past two decades. By 2014, 90% of the country’s earnings came from oil. However, as oil prices dropped, an economic collapse began. The value of the Venezuelan currency fell, and as a result, the cost of goods increased.
At the time, the newly inaugurated President Nicolas Maduro made the executive decision to print more money. This intended solution simply made the problem worse as an increased supply in currency only decreased its value even more. Maduro’s government continued to print more money to combat the falling prices, creating a dangerous cycle of hyperinflation. The current inflation rate is an estimated 9,986%, the highest inflation rate globally.
How Hyperinflation Impacts Menstrual Products
Due to hyperinflation, many women in Venezuela are affected by period poverty. One package of sanitary pads can cost more than a quarter of a month’s salary. A box of tampons is even more inaccessible, costing “up to three months’ salary.” Women who cannot afford these prices are forced to improvise by creating “temporary pads made of old socks, toilet paper or cardboard.” These makeshift menstrual products carry health implications for girls and women, putting them at heightened risk of toxic shock, urinary tract infections and other diseases.
Period Poverty Affects Education and Employment
Menstrual products affect not only a woman’s health but also every aspect of her daily life. Women who cannot afford products often have to miss school or work as a consequence. For school-aged girls, this can total 45 days of the school year missed. Since education is linked to poverty reduction, a lack of menstrual products exacerbates cycles of poverty. By missing work, womens’ incomes are reduced, intensifying conditions of poverty.
Sustainable Menstrual Solutions
Sustainable menstrual products may provide a solution to addressing period poverty in Venezuela. While standard pads and tampons have to be regularly purchased due to their disposable nature, menstrual cups are resilient and reusable, proving both effective and affordable.
Marian Gómez, the founder of The Cup Ve, created a menstrual cup that costs $10-$20 and lasts about seven years. This proves significantly cheaper long-term compared to buying monthly disposable menstrual products.
Sisters Marianne and Véronique Lahaie Luna also recognized the potential of menstrual cups in reducing period poverty in Venezuela. Their NGO, Lahai Luna Lezama, donated more than 400 menstrual cups to Venezuelan migrant women in 2019 alone. More than 300 menstrual cup recipients reported that the menstrual cups significantly transformed their lives.
Menstrual Education in Venezuela
Menstrual myths and stigma as well as a lack of menstrual education also exacerbate the issue of period poverty in Venezuela. To address this, Plan International hosts educational menstrual workshops for migrant girls and women. The organization distributed hygiene kits to more than 41,000 “Venezuelan people in Colombia, Ecuador, Peru and Venezuela.” Plan International’s future plans include not just giving out resources but opening the conversation around menstruation.
The commitment and dedication of organizations help to combat period poverty in Venezuela, removing barriers to female advancement and development. By combating period poverty, global poverty is simultaneously reduced.
– Caroline Bersch
Photo: Unsplash
5 Facts About Child Poverty in Bolivia
5 Facts About Child Poverty in Bolivia
Poverty directly links to the mortality rates of children younger than 5. Poverty-ridden conditions lead to diarrheal diseases, which account for 36% of the total deaths of Bolivian children younger than 5. Malnutrition accounts for about 28% of the total mortality rate for children in this age group.
Fighting Child Poverty in Bolivia
In addition to the efforts of Save the Children and A Breeze of Hope, the WFP directly assists the Bolivian government in combating malnutrition and food insecurity. Children Incorporated works with 14 projects in the Bolivian cities of La Paz, Sucre and Santa Cruz. The organization provides children with basic necessities and school materials. Additionally, Canadian Feed the Children provides more than 355,000 nutritious snacks and meals to Bolivian children annually. It also sponsors classes to educate parents on “healthy child development” and children’s rights. Although there are still challenges to overcome, significant work is being done to eradicate child poverty in Bolivia.
– Cory Utsey
Photo: Flickr
Parliament Approves the European Social Fund Plus
The ESF+ will be the primary tool to improve the future of Europe. This means addressing all consequences caused by the COVID-19 pandemic, improving employee incomes, strengthening social welfare programs and creating a qualified and adaptable workforce.
Funds and Support
The European Social Fund Plus has a budget of approximately €88 billion to spend between 2021 and 2027. The finances will go to areas of key priority, including:
Empowering Youth and the Most Deprived
The European Parliament increased funds to ensure workforce participation for young people and to provide alleviation of child poverty, targeting two categories of citizens who the COVID-19 pandemic extremely affected. Member states will commit around 12.5% of their ESF+ budgets to assist youth by developing their skills and finding proper employment. Member states will also allocate funds to support children in jeopardy of poverty and social exclusion by ensuring fair access to daycare, schooling, health services and safe housing for all children. Every member state must contribute to the fight against child poverty.
Along with supporting disadvantaged youth, member states will invest a minimum of 25% of their resources to initiatives promoting equal rights for marginalized groups. This will aid in lowering workforce obstacles, combating social injustices and addressing health disparities.
In addition to the quarter of resources spent on fighting discrimination, member states will contribute at least 3% of the finances to necessities including water, food, clothing and shelter. This will counter global poverty that inherently leads to social isolation.
Main Goals of the ESF+
Overall, the European Parliament has created a budget to help the world’s poor, which gives the population a fighting chance to secure proper employment, adequate education and housing and social equality. Outlined are the main goals of the European Social Fund Plus:
The budget that the European Parliament has created will be appropriate for present circumstances and future uncertainties. Through the European Social Fund Plus, citizens will be able to reshape a more diverse, inclusive and resilient European Union.
– Anna Lovelace
Photo: Unsplash
The 2021 Nyiragongo Volcanic Eruption in the DRC
History of Mount Nyiragongo
The Nyiragongo volcano stands almost 12,000 feet tall on the eastern border of the DRC in the strip of Virunga Mountains, a chain of active volcanoes. The volcano is one of the most active in the world and has the largest, most active lava lake. Nyiragongo has erupted several times since 1884, with the most severe eruption occurring in 1977, taking up to 400 lives. The most recent eruption before 2021 occurred in 2002, resulting in about 100 deaths and displacing up to 400,000 people.
The Aftershocks of the 2021 Eruption
The 2021 volcanic eruption in the DRC led to about 32 deaths and thousands of displacements. On May 30, 2021, in a period of just 24 hours, 92 aftershock earthquakes and tremors occurred but only about four were felt by citizens. For safety purposes, more than 400,000 people were evacuated from the North Kivu area.
Cholera, a diarrheal infection caused by drinking contaminated water, is an increased threat since the eruption. Natural disasters often increase the risk of epidemics, especially those transmitted via contaminated water. The eruption of the Nyiragongo volcano in the DRC caused the destruction of a vital water pipe and damaged a water reservoir. The damage cut off water access for about 500,000 people.
On June 7, 2021, UNICEF and partners announced that they were working to restore the water supply to the area. For temporary water access, UNICEF “installed 15 emergency station chlorination points” close to Lake Kivu. UNICEF also committed to assisting a task force by “supporting installation of 1,500 meters of pipe on top of the lava to replace pipework that has melted.”
The Hope of Crisis Assistance
Prior to the 2021 volcanic eruption in the DRC, the nation was already struggling with a humanitarian crisis, following years of political violence and conflict. At the beginning of 2021, the United Nations predicted that 19.6 million people in the DRC were in need of humanitarian assistance. With more than five million displaced persons and the highest recorded levels of food insecurity before the eruption even took place, the humanitarian crisis in the DRC has only grown. The U.N. requires financial assistance from the international community in order to comprehensively address the crisis in the DRC.
The United States serves as the largest donor to the DRC, providing more than $130 million worth of humanitarian assistance in 2021 alone. The U.S. commitment of $100,000 for water security initiatives in the DRC will aid the efforts of organizations such as UNICEF, protecting the well-being of vulnerable Congolese people.
– Monica Mellon
Photo: Flickr
Ngozi Okonjo-Iweala on Ending Poverty
On March 1, 2021, Ngozi Okonjo-Iweala took office as the director-general of the World Trade Organization (WTO). She is the first woman and the first African to hold this office. After experiencing the Nigerian Civil War, she came to the U.S. and studied development economics at Harvard University. She also received her doctorate in regional economics and development from the Massachusetts Institute of Technology. In 2003, she served as Nigeria’s finance minister. After a second appointment ending in 2015, she also served as a foreign minister and worked for the World Bank for 25 years, overseeing an $81 billion portfolio. In her newly appointed role, Okonjo-Iweala promises to influence and implement policy in order to restore the global economy.
What is the World Trade Organization?
The World Trade Organization is an international organization that deals with the “rules of trade between nations.” Member governments negotiate trade agreements that are then ratified in their own parliaments. All major decisions are made by the membership as a whole, either by ministers, their ambassadors or delegates.
The WTO plays an important role in reducing global poverty. Studies show that free trade helps impoverished countries “catch up with” developed nations. More than three-quarters of WTO members are developing countries. Every WTO agreement holds particular provisions for these countries, including longer time spans to carry out agreed-upon policies, “measures to increase their trading opportunities” and assistance to support these countries in building the necessary infrastructure to improve their economies. Least-developed countries are often exempt from many provisions.
The WTO also aims to reduce living costs and improve living standards by mitigating the effect of protectionism on consumer costs. This means that products are more affordable for those with a lower income. In addition, lowering such trade barriers stimulates economic growth and employment, creating opportunities for the impoverished to increase their incomes.
Okonjo-Iweala and Poverty
Okonjo-Iweala’s long list of achievements includes many in the realm of poverty reduction. As the minister of finance in Nigeria, she helped Africa’s largest economy “grow an average of 6% a year over three years.” She also helped create “reform programs that improved governmental transparency and stabilizing the economy.”
As the board chair of Gavi, the Vaccine Alliance, she contributed to ensuring vaccine equity. During her 25-year career at the World Bank, she rose to the second-most prominent position of managing director. Okonjo-Iweala ran for the office of director-general of the WTO with the strong belief that trade has the power to lift people out of poverty.
Okonjo-Iweala is also a supporter of COVAX, aiming to resolve vaccine nationalism. During the COVID-19 pandemic, vaccine nationalism is a problem that disproportionately affects impoverished countries. COVAX is a global vaccination effort launched by Gavi and leading partners to ensure vaccine equity.
In a January 2021 article, Okonjo-Iweala writes that “All manufacturers must step up and make their vaccines available and affordable to COVAX,” in order to ensure equitable and timely vaccine distribution to low-income countries. She also warned against repeating history.
In 2009, a small number of high-income countries bought up most of the global supply of the H1N1 flu vaccine, which left the rest of the world lacking. If history were to repeat itself during the COVID-19 pandemic, the impact on impoverished countries, and the world at large, would be devastating.
Okonjo-Iweala’s Plan
As director-general of the WTO, Okonjo-Iweala’s immediate plans focus on ending the COVID-19 pandemic with vaccines for all. In a statement outlining her vision for the future of the WTO, she says “the WTO can and must play a more forceful role in exercising its monitoring function and encouraging Members to minimize or remove export restrictions and prohibition that hinder supply chains for medical goods and equipment.”
She also says that member nations of the WTO need to adopt a stronger stance in preventing vaccine nationalism and protectionism. International cooperation, in her opinion, is the only way to come up with the vaccines, therapeutics and diagnostics needed to put an end to the COVID-19 pandemic.
Okonjo-Iweala has promised to face the economic and health challenges presented by the novel coronavirus head-on. Importantly, she notes that “a strong WTO is vital if we are to recover fully and rapidly from the devastation wrought by the COVID-19 pandemic.” Okonjo-Iweala promises to work in a collaborative effort to “shape and implement the policy responses” necessary to restore the global economy.
– Brooklyn Quallen
Photo: Flickr