The Republic of Croatia is a country located in Central and Southeast Europe, bordering Serbia, Hungary, Slovenia and Montenegro. Since proclaiming independence in 1991, the country introduced policies, programs and reforms to improve the quality of life of its citizens. But, COVID-19’s impact on women and poverty in Croatia has had serious consequences for the country.
COVID-19 and Unemployment
COVID-19 devastated many countries in a social, political and economic areas. However, Croatia was particularly hit hard. Starting in 2008, the country experienced a global financial crisis that had tremendous consequences. The European Commission Autumn Economic published a report estimating a recession of approximately 9.6% GDP in 2020, nearly 7% worse than the previous year. The main reasons behind the decrease are the fall in the tourism sector, domestic consumption and eradication of exports. In addition, registered unemployment skyrocketed by 21.3% during the first year of the pandemic.
Poverty in Croatia also increased after two earthquakes in 2020 negatively impacted Croatia’s pandemic and health crisis management. In response, the European Union deployed resources for the recovery of all the member countries, especially those who also suffered natural disasters during the pandemic.
Despite this bleak outlook, an analysis by The Ministry of Finance argues for an “optimistic growth of 5%” in 2021, provided Croatia sees an increase in domestic demand and continues receiving recovery funds from the European Union.
Women and Poverty in Croatia
According to a report by the World Bank, COVID-19 is not the only factor pushing women towards poverty. Undoubtedly, women are more likely to be employed in the informal, low-skilled and part-time jobs that were hardest hit by the pandemic. In many cases, these jobs disappeared and women suffered income loss. In addition, women who lost their jobs or work at home are less likely to be guaranteed social security and health coverage by the emergency packages created since the outbreak of COVID-19. For this reason, COVID-19’s impact on women and poverty in Croatia has been severe.
Both the European Union and the World Bank are aware of the many barriers women have to overcome. In response, they created several policies to find a solution. Some of the policies include providing equal access to the labor market for all women and removing any barriers to women’s employability.
The Government Response
Croatian authorities have become aware of the extreme need to reduce poverty in Croatia, especially for women. In 2019, authorities passed a National Action Plan for Women, Peace, and Security (NAP) to be carried out until 2023. This plan aims to prevent, protect and guarantee women’s rights in the country. The policy seeks to ensure that every woman has access to education, public health and active participation in the labor market.
The NAP prioritizes nine objectives to aid in prevention, participation, protection and implementation. Among these objectives are an increase in women’s role in decision-making processes and the promotion of women’s rights in conflict settings. The NAP works on the back of previous legislation that aimed to increase women’s participation in higher education. For example, women represented 59.9% of university graduates from 2015 to 2018. The same period saw a 4% increase in women in human resources and a 2% increase in female professors.
To support women’s employment, authorities introduced legislation to improve family life through maternity and parental benefits. For example, the Ministry of Demography, Family, Youth and Social Policy (MDFYSP) supports projects such as lengthening daycare operations, creating alternative education programs and providing children with meals. By supporting scholarships and child care, parents have more time to dedicate to their professional careers.
Hope for the Future
In conclusion, COVID-19 drastically affected Croatia in many ways. In particular, women suffered heavy damage from the health crisis. But, the international community and the Croatian authorities stepped in to design programs and resources for the eradication of poverty. Which, if the data is any indication, has promising results for the future of poverty in Croatia.
– Cristina Alverez
Photo: Flickr
Protests in Eswatini, Africa’s Last Absolute Monarchy
Poverty in Eswatini
In 2018, Swaziland changed its name to Eswatini. It borders South Africa and Mozambique. According to NPR, the country is Africa’s last absolute monarchy, and political parties are banned there. The ruler of the country is King Mswati III, who has reigned since his coronation in 1986.
King Mswati III has received heavy criticism for living in luxury while nearly two-thirds of Eswatini’s population of 1.2 million live in poverty. This gaping inequality is one of the reasons for the current pro-democracy protests in Eswatini.
Additionally, more than 330,000 people in Eswatini struggle with food insecurity. The country is still reeling from COVID-19 and a 2016 drought that ravaged the country’s food supply. Most of its people face poverty while their king lives in splendor.
Pro-Democracy Protests in Eswatini
Over the past few weeks, protests have broken out in Eswatini. People have rallied in opposition to the monarchy, and specifically the king. They are also expressing displeasure about restrictions on political expression and the poor state of the economy.
The protests have also caused immense damage both to the country and its people. At least 40 people have died, and more than 150 protestors have been taken to hospital with injuries. Additionally, violence and looting have caused a lack of basic necessities for many citizens. Protestors are calling for greater political participation, a limit on the monarchy’s power and a popular election for a Prime Minister instead of an appointment by the king.
Light in the Darkness
However bleak the forecast may seem for the protests in Eswatini, there is a ray of hope. Following the social unrest in Eswatini and South Africa, female religious leaders organized a Day of Prayer for their countries to heal.
The Leadership Conference of Consecrated Life in Southern Africa (LCCLSA) organized an online Day of Prayer. The event encouraged participants to pray for peace, healing and an end to the violence. Some people also shared testimonies of how the violence has affected them and their families, allowing for collective healing.
“Though painful and sad to listen to, the testimonies proved to be inspiring and gave a glimmer of hope in the midst of the hopelessness that people are feeling,” Sr Nkhensani Shibambu, President of LCCLSA, told Vatican News. “Many people were moved and touched by the initiative and felt inspired to begin the rebuilding of the country from the ashes that had surrounded them in the past weeks.”
While protests ravage Eswatini, highlighting the inequity between the lavish lifestyle of King Mswati III and the two-thirds of citizens living in poverty, there is hope in people coming together to pray for healing and a better future for the country.
– Laya Neelakandan
Photo: Flickr
How Migration in India can Mitigate Poverty
The migrant population is a large driver of India’s economy. India has one of the largest migrant economies in the world. Many Indian workers travel hundreds of miles to work in certain areas of the country to support their families back home. GDP growth rose by over 8% between 2005-2012. In addition, over 137 million people escaped poverty as a result of large-scale migration. There is tremendous potential in using migration in India as a poverty alleviation tool based on past numbers. The Mahatma Gandhi Employment Guarantee Act of 2005 (MGNREGA) is the primary national legislation of the nation geared towards solving its poverty crisis. However, it stagnated as of late due to COVID-19. Migration is a tool towards recovery from the consequences of COVID-19 and it offers a long-lasting solution to poverty in India.
About MGNREGA
The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a poverty alleviation legislation. It went into effect in August 2005. The act guarantees a hundred days of wage employment in any given financial year to rural households who have adults willing to volunteer for unskilled manual labor. The MGNREGA focuses on empowering women both socially and economically. The act also focuses on providing green and decent work by conserving natural resources. Although the MGNREGA is successful to some extent, greater poverty alleviation demands the use of migration as well.
Many Indian policymakers fail to recognize the potential benefits of migration. They often view it as a response to tragedy instead of those seeking greater economic freedom and opportunity. The MGNREGA originally intended to provide 100 days of work, now only providing 50 days of work in the majority of Indian states. Migrants can find higher-paying and more stable work within large urban areas and cities. MGNREGA reform is necessary along with the implementation of new migration legislation in order to further mitigate poverty in India.
The Benefits of Large Scale Indian Migration
Based on the same rate of migrant increase in the 2010s, over 56 million individual migrants would have traveled in 2020. Those benefiting back home in rural villages would have totaled 224 million, had COVID-19 not occurred and MGNREGA not reduced Indian migration. In comparison, 37 million families will benefit from MGNREGA during the fiscal year 2020-2021 according to the rural development ministry. Migration benefits a much higher percentage of the Indian population in poverty than MGNREGA does.
Migrants additionally have an easier time assimilating to their destination once their financial situation improves with higher quality work and wages. Women working in agriculture in the Eastern Indian state of Bihar can more than double their daily wages by moving to Patna, the capital of Bihar. Men from Bihar can increase their earnings even more at an increase of approximately 66% by relocating to Punjab and can have an even higher earning potential if they decide to move to major cities such as Ahmedabad, Surat, Delhi or Mumbai.
The Impact of COVID-19 on Migration in India
India’s lockdown period due to the COVID-19 virus lasted over a year, beginning on March 25, 2020. As a result, migration throughout the country came to a standstill as trains and planes stopped operating leaving many Indians trapped. Many migrants lost their jobs due to the toll the virus took on major Indian industries and were far from their homes without any options to get back.
Reducing poverty in India is no small task as it possesses the second largest population in the world. Passing anti-poverty legislation that provides migrants in India more options to travel within Indian borders for work could create millions of new jobs and greatly benefit both the Indian economy and people.
– Curtis McGonigle
Photo: Flickr
COVID-19’s Impact on Women and Poverty in Croatia
COVID-19 and Unemployment
COVID-19 devastated many countries in a social, political and economic areas. However, Croatia was particularly hit hard. Starting in 2008, the country experienced a global financial crisis that had tremendous consequences. The European Commission Autumn Economic published a report estimating a recession of approximately 9.6% GDP in 2020, nearly 7% worse than the previous year. The main reasons behind the decrease are the fall in the tourism sector, domestic consumption and eradication of exports. In addition, registered unemployment skyrocketed by 21.3% during the first year of the pandemic.
Poverty in Croatia also increased after two earthquakes in 2020 negatively impacted Croatia’s pandemic and health crisis management. In response, the European Union deployed resources for the recovery of all the member countries, especially those who also suffered natural disasters during the pandemic.
Despite this bleak outlook, an analysis by The Ministry of Finance argues for an “optimistic growth of 5%” in 2021, provided Croatia sees an increase in domestic demand and continues receiving recovery funds from the European Union.
Women and Poverty in Croatia
According to a report by the World Bank, COVID-19 is not the only factor pushing women towards poverty. Undoubtedly, women are more likely to be employed in the informal, low-skilled and part-time jobs that were hardest hit by the pandemic. In many cases, these jobs disappeared and women suffered income loss. In addition, women who lost their jobs or work at home are less likely to be guaranteed social security and health coverage by the emergency packages created since the outbreak of COVID-19. For this reason, COVID-19’s impact on women and poverty in Croatia has been severe.
Both the European Union and the World Bank are aware of the many barriers women have to overcome. In response, they created several policies to find a solution. Some of the policies include providing equal access to the labor market for all women and removing any barriers to women’s employability.
The Government Response
Croatian authorities have become aware of the extreme need to reduce poverty in Croatia, especially for women. In 2019, authorities passed a National Action Plan for Women, Peace, and Security (NAP) to be carried out until 2023. This plan aims to prevent, protect and guarantee women’s rights in the country. The policy seeks to ensure that every woman has access to education, public health and active participation in the labor market.
The NAP prioritizes nine objectives to aid in prevention, participation, protection and implementation. Among these objectives are an increase in women’s role in decision-making processes and the promotion of women’s rights in conflict settings. The NAP works on the back of previous legislation that aimed to increase women’s participation in higher education. For example, women represented 59.9% of university graduates from 2015 to 2018. The same period saw a 4% increase in women in human resources and a 2% increase in female professors.
To support women’s employment, authorities introduced legislation to improve family life through maternity and parental benefits. For example, the Ministry of Demography, Family, Youth and Social Policy (MDFYSP) supports projects such as lengthening daycare operations, creating alternative education programs and providing children with meals. By supporting scholarships and child care, parents have more time to dedicate to their professional careers.
Hope for the Future
In conclusion, COVID-19 drastically affected Croatia in many ways. In particular, women suffered heavy damage from the health crisis. But, the international community and the Croatian authorities stepped in to design programs and resources for the eradication of poverty. Which, if the data is any indication, has promising results for the future of poverty in Croatia.
– Cristina Alverez
Photo: Flickr
Tools to Maximize Crop Yields
Precision Farming
Precision farming is the newest agricultural method maximizing crop yields. It minimizes the time, cost and labor involved in cultivation. Precision farming uses technology to closely observe and care for crops. It cuts down on the time-consuming practice and does not require a large labor force.
The Scientific American article states, “precision farming, by contrast, combines sensors, robots, GPS, mapping tools and data-analytics software to customize the care that plants receive without increasing labor. Farmers receive the feedback in real-time and then deliver water, pesticide or fertilizer in calibrated doses to only the areas that need it. The technology can also help farmers decide when to plant and harvest crops.” Using precision farming techniques allows farmers to be more attentive to their respective crops. In addition, farmers save more energy, time and resources while increasing the proportion of the harvested crops.
Irrigation is also a vital element of cultivating crops. Automatic monitoring and control systems that water crops base their specific watering needs on climate conditions. Precision farming optimizes the condition of crops’ care. Moreover, these automatic irrigation systems ensure that crops get the right amount of water they need to thrive in their climate. This minimizes water waste that oftentimes accompanies manual water systems on farms. Additionally, farmers can divert their attention to other crop-yielding tasks rather than closely monitoring crops.
Fungicides are the New Pesticides
Crop loss is largely attributed to pests and other vermin that attack food crops. Pesticides are often used to maximize food crops and protect yields. However, pesticides can oftentimes be expensive and are inaccessible for farmers in rural regions of developing countries. Furthermore, pesticides can be harmful to crops such as fruits and vegetables, decreasing the portion of crops harvested. On the other hand, fungicides are less expensive and less harmful alternatives to pesticides.
Maximizing the portion of food crops harvested helps decrease hunger-related poverty, providing more food options to individuals. Additionally, ensuring that crop yields are large stabilizes the price of food and provides enough supply for the demand. In this way, tools and technological advancements such as precision farming, automatic irrigation and fungicides help maximize crop yields and limit poverty-related hunger.
– Kristen Quinonez
Photo: Flickr
Combating Illegal Fishing in Indonesia
What is Illegal Fishing?
When fishing vessels do not possess the proper documentation and equipment required by Indonesian law to fish in Indonesian waters, these vessels engage in illegal fishing. To deter illegal fishing, the Indonesian government mandates that each fishing vessel possesses the necessary licenses and declares its fishing gear. This helps the government collect data on the types of equipment used and the number of vessels in the country. The government limits the number of vessels present at a certain time to prevent overfishing and to ensure fishermen practice ethical fishing techniques.
Impacts of Illegal Fishing
Indonesia is situated in the Coral Triangle, an area encompassing most of maritime Southeast Asia. The Coral Triangle contains more than 2,000 species of coral reef fish, making it one of the most biodiverse regions in the world. Moreover, this diversity in fish species directly correlates with why fishing remains an integral part of the region’s economy of the region. As it stands, “the Coral Triangle sustains at least 120 million people.” In Indonesia specifically, the fishing industry employs an estimated 12 million people, which allows the nation to be the second-largest fish producer in the world.
Indonesia’s reliance on ocean life is a fundamental aspect of the country’s way of life, and as such, threats to the fishing ecosystem can have severe consequences. Overfishing has had a detrimental impact on fish populations over the years, illustrated by a 95% decline in fish populations in the region over the last 60 years. Furthermore, destructive fishing practices that use explosives to stun fish — known as “dynamite fishing” — destroy marine habitats, leaving extensive damage. These practices continue to harm the fishing industry in Indonesia. Low incomes for fishers have already led to a decline in professionals in the industry within the last 20 years.
USAID’s SEA Program
The USAID SEA project clamps down on illegal fishing in Indonesia and protects local fisheries by collaborating with local communities. Initiated in 2016, this five-year program worked in the provinces of West Papua, Maluku and North Maluku, where illegal fishing practices have hit fishing communities the hardest. USAID SEA sought direct collaborations with locals to “raise awareness about marine conservation, educate others in their community about these issues and report harmful practices to local authorities.”
Designed to curb illegal fishing in Indonesia, the USAID SEA project helps assure ethical fishing practices. Illegal fishing practices like overfishing deplete fish populations, negatively affect the livelihoods of fishers and hurt the country’s economy. The project raises awareness about the importance of marine conservation and its long-term benefits for these communities. As such, it helps defend a way of life for millions of Indonesian people.
– Nikhil Khanal
Photo: Flickr
Restoring Trust: Polio Vaccines in Liberia
After enduring a surge in COVID-19 cases during the month of June 2021, Liberia may be experiencing some relief in its battle to beat the pandemic. According to Dr. Francis Karteh, a chief medical officer in Liberia, the country’s COVID-19 cases declined in the week leading up to July 12, 2021. However, Karteh also emphasized that the Liberian people must remain diligent in their COVID-19 prevention measures. The highly contagious Delta variant may regain strength if individuals become too relaxed. Nevertheless, this news offers hope for the country’s desire to move toward reopening businesses. But, even as COVID-19 infections decline in Liberia, vaccine hesitancy persists. This distrust of vaccines does not solely apply to the coronavirus vaccine though. UNICEF is currently undertaking efforts to reassure Liberians about the safety of polio vaccines in Liberia.
History and New Vaccine Hesitancy
In 2008, Liberia declared itself a polio-free country as a result of its mass vaccination success. However, Liberia recently discovered a circulating vaccine-derived poliovirus (VDPV) strain that stems from what was originally contained in the oral polio vaccine but has evolved to behave “more like the wild or naturally occurring virus.” Consequently, VDPV is more transmittable to the unvaccinated, especially in areas with inadequate sanitary conditions.
For this reason, the eradication of the poliovirus relies on the continued vaccination of children. Unfortunately, the COVID-19 pandemic forced Liberia to halt immunization programs, and as poliovirus infections increased, in February 2021, Liberia’s Ministry of Health announced the poliovirus outbreak as a “public health emergency” for the country.
On top of this, as Liberia begins to resume its polio vaccination operations, individuals are more hesitant about the polio vaccines. Following a year of COVID-19 vaccine misinformation circulating the globe, many Liberians wonder if one can trust any vaccine. Comfort Morphe, a midwife at Hydro MERCI Clinic, says she can “feel the weight [of the misinformation].”
Additionally, Mohamed Shariff, a teacher in the Liberian city of Monrovia, said that the campaign for polio vaccines in Liberia has had to evolve since there have been “so many refusals.” Many find the polio vaccine hesitancy peculiar since Liberia has “been using [the poliovirus vaccine] for years.” With vaccine uncertainty festering throughout the country, it is more challenging to quell the current rise in poliovirus infections.
UNICEF Partnership
Fortunately, in an effort to reduce vaccine hesitancy, UNICEF is partnering with Liberia’s Ministry of Health to communicate factual polio vaccine information through “radio talk shows, community engagement meetings, SMS” as well as posters and banners. The use of SMS notifications is especially beneficial since some communities in Liberia do not have stable internet access.
Volunteers also use the door-to-door approach to speak with parents on the importance of vaccinating children. Ummu Paasewe, for example, who works for Liberia’s Ministry of Health as a community mobilization officer, described how her team assures mothers that the vaccine is “the same kind of oral polio vaccine but more advanced” to combat this specific variation of the poliovirus. As a mother herself, Paasewe’s children are vaccinated and she contends that “immunization is a preventative method.”
Looking Forward
Other countries also see the benefits of supporting Liberia’s vaccination efforts. The Japanese government has supplied UNICEF with $2.7 million since 2020 to support women’s and children’s health in Liberia. Moreover, one of the Japanese government’s chief objectives is to get Liberians vaccinated against the poliovirus and COVID-19.
UNICEF representative to Liberia, Laila Omar Gad, stated that “just one child affected by polio is a risk to all children.” However, UNICEF volunteers remain optimistic and report that they have convinced many Liberian families about the polio vaccine’s safety and reliability. Through the dedication of Liberia’s Ministry of Health and support from UNICEF and Japan, vaccinating communities against the poliovirus looks to be an achievable goal.
– Madeline Murphy
Photo: Flickr
Vodafone Ghana and the IIA Empower Local Ghanaian Businesses
A Promising Partnership
Created in 2012, Invest in Africa (IIA) operates in five African nations: Ghana, Kenya, Senegal, Zambia and Mauritania. According to Carol Annang, IIA’s Ghana country director, IIA strives to create jobs and attract investment opportunities for local businesses. By uniting small and medium-sized enterprises (SMEs) with large corporations, Annang says that these types of partnerships can help corporations “use their local buying power as a force for good.”
Since Vodafone Ghana has expressed its dedication to Ghana’s economic and social growth, the partnership with the IIA gives Vodafone Ghana the opportunity to utilize its resources in accordance with the company’s mission. Additionally, because Vodafone Ghana has served small businesses for years, the company can provide IIA with additional experience in “network-based IT and communication solutions.”
Specific Solutions
The IIA and Vodafone Ghana will focus on two solutions to propel the growth of Ghanaian local businesses:
Through these measures, IIA and Vodafone Ghana hope to expand the digital presence of local Ghanaian businesses and boost the economic growth of these businesses. These solutions are set to begin implementation on April 1 for at least two years.
COVID-19 Setbacks and Steps Forward
As Ghana continues to recover from the COVID-19 pandemic, this plan for Ghanaian business growth comes at an opportune time. While coronavirus infections rose throughout the country and businesses permanently closed, by the third quarter of 2020, Ghana entered a recession for the first time since 1982. Additionally, Ghana’s GDP grew only 1.1% in 2020 compared to a growth of 6.5% before the pandemic began.
Because of this low GDP increase and Ghana’s high population growth, the real per capita income of Ghana was “1% lower [in 2020] than in 2019.” Moreover, according to the World Bank Group, additional impacts of the pandemic will include decreases in “foreign direct investment and tourism receipts.” Consequently, many families in Ghana have become impoverished and the country’s poverty rate has increased since the start of the pandemic.
However, one of the principal objectives of the collaboration between IIA and Vodafone Ghana is to help businesses recover from COVID-19 setbacks. In fact, William Pollen, the CEO of IIA, expressed how necessary it is to support SMEs because these enterprises employ the majority of people living in sub-Saharan Africa and constitute roughly 80% of business activity in the region.
The Road Ahead
On the whole, despite the past year’s struggles and the hurdles that arise on the road to economic recovery, the partnership between IIA and Vodafone Ghana presents a positive outlook for the future of local Ghanaian businesses. In the words of Tawa Bolarin, the director of Vodafone Business, “these are indeed exciting times for us and the entrepreneurial community in Ghana.”
– Madeline Murphy
Photo: Flickr
COVID-19’s Educational Impact
As the COVID-19 pandemic persists around the world, it is important to examine how life has changed over the past year and a half. COVID-19’s educational impact is one area that deserves attention because education is a key in the fight against global poverty. Low- and middle-income (LMIC) countries across the world have significant poverty and the COVID-19 pandemic has exacerbated many challenges that one can associate with poverty, including obtaining an education. However, despite the challenges, COVID-19’s educational impact on LMICs should benefit from cutting-edge technological solutions. These technologies are changing how the poor receive an education.
COVID-19’s Educational Impact
Save the Children has estimated that even before the pandemic, the world was in a “learning emergency” with more than half of the children in LMICs designated as “learning poor” before they are 10 years old. Since COVID-19 school closures have left many children unable to access remote learning, COVID-19’s educational impact has included an increase in “learning poverty.” Save the Children has said that as of 2021, more than 11 million additional children are among the learning poor.
The economic hardship that has come as a result of the pandemic is negatively impacting education in a major way. As tax revenues have declined, budget cuts are leaving an estimated $77 billion gap in education spending for impoverished children around the world. Save the Children estimated that 10 million children may have dropped out of school for good in 2020. Meanwhile, the students who have managed to remain in school are at an increased risk of having to repeat grades and fall behind due to the pandemic.
Through the pandemic, girls have often had to drop out to marry early and boys have had to leave school to find work. Save the Children has pointed out that school closures have not only had an impact on education losses, but it has also take safe spaces away from children so that they “can play with friends, have meals and access to health services.”
Creative Technological Solutions to Alleviate “Learning Poverty”
A 2021 United Nations International Children’s Fund (UNICEF) study estimates that more than 2 billion, or two-thirds of those under age 25, lack internet access at home. New technology solutions bring hope in low-bandwidth areas to help sustain some access to education and skills training.
The World Bank has highlighted downloadable content, mobile vans and low-cost hardware as strong low-bandwidth education solutions. Learners who do not have access to a reliable internet connection can download libraries of content and access them offline. If learners are in a remote area and face high transportation costs, mobile vans can bring an education anywhere. Also, these vans with mobile internet access and computers meet learners at their precise learning levels and provide courses that allow learners to gain skills in a matter of weeks. Low-cost hardware is available to give more learners access to computers. One group providing such hardware is the Raspberry Pi Foundation. A simple USB charger powers the Raspberry Pi Foundation’s small computer that runs a free operating system.
COVID-19’s educational impact has exacerbated existing problems to educate learners in LMICs. On the other hand, while the “learning poverty” alarm is sounding around the world, new creative solutions bring hope to meet these challenges. Technology will continue to be important to education in its fight against global poverty.
– Alex Muckenfuss
Photo: Wikipedia Commons
How Vietnam Improved Its Economy
Vietnam has seen a tremendous amount of growth in various sectors over the past three decades. This growth is largely due in part to economic reforms that have undergone implementation in the country. Before the reforms, Vietnam remained one of the poorest countries in the world. However, it has since grown to become a country with a lower-middle income. The GDP of Vietnam grew tremendously between 2002 and 2018 by increasing 2.7 times. Even in the face of the worldwide COVID-19 pandemic, the economy of Vietnam has been able to remain steadfast and resilient through trying times. Here is some information about how Vietnam improved its economy.
The Doi Moi Reforms
The Doi Moi reforms that the government implemented in 1986 helped Vietnam improved its economy. Under these reforms, Vietnam as a country took three significant steps as a country that would help improve the economy. The first of these steps was embracing free trade.
For many years, Vietnam has entered into various free trade agreements with numerous nations. One includes ASEAN, which Vietnam became a part of back in 1995. Vietnam and the U.S. partnered together by signing a free trade agreement in 2000, and seven years later, Vietnam joined the World Trade Organization. By joining these institutions and forming these alliances, Vietnam has been able to reduce the number of tariffs on imports coming into the country and exports leaving the country.
Making Changes
The second step that the Doi Moi reforms took to better the economy was implementing deregulation and making it cheaper for companies to conduct business within Vietnam. One way this occurred was through the enactment of the Law on Foreign Investment which passed in 1986. This law allowed companies from foreign countries to come into Vietnam to conduct business. Over the years, this law underwent revisions numerous times to better accommodate investors.
This law has improved Vietnam’s competitiveness tremendously over the years. In 2006, Vietnam’s global competitiveness ranked at 77. Only 11 years later in 2017, Vietnam ranked at 55 in world competitiveness. Lastly, the Doi Moi reforms aimed at improving human capital in Vietnam and improving the country’s infrastructure.
To improve the human capital of Vietnam, the government decided to prioritize education within the country. Better education is a must for Vietnam due to its ever-growing population. A larger population means more jobs and citizens must receive quality education to perform them. Infrastructure has been vitally important for the growth of Vietnam’s economy as well. Making sure that all citizens have access to internet services is important for a country due to the technological needs of the modern age.
How It Helps
Vietnam improved its economy due largely to the Doi Moi reforms. Today, the economy of Vietnam continues to flourish. In 2020, during the midst of the COVID-19 pandemic, Vietnam’s economy expanded by 2.9%. Compared to other countries at the time, this growth rate was among the highest in the world.
Since 2010, the poverty rate in Vietnam has slowly declined each year. In 2012, the poverty rate was at 40.8%. By 2018, the poverty rate fell almost by 20%, leaving it at 23.1%. As it currently stands, the Vietnamese economy continues to stay strong and grow.
– Jacob E. Lee
Photo: Flickr
Serbia’s Cash Incentives Encourage Vaccinations
Poverty in Serbia
Serbia is one of Europe’s most impoverished countries. In 2017, the poverty rate stood at 19.30%. In 2020, the unemployment rate was around 9%, a drastic decline from its peak of 24% in 2012. Poverty rates are particularly high in the rural and southern regions of the country. In an environment of widespread poverty, $30 is a significant incentive that “equates to around 5% of the country’s average monthly salary.”
How Cash Incentives Can Reduce Poverty
Serbia’s cash incentives could be an effective way of reducing poverty. A 2019 study in Kenya showed that cash transfers to impoverished families had a significant impact not only on the recipients but on the entire local community. The study found that each dollar of aid increased economic activity in the region by $2.60. President Aleksandar Vučić’s cash incentives might provide a similar economic boost in Serbia’s cash-poor economy.
Cash Payments Boost Vaccination Rates
The advantages of Serbia’s cash incentives are far-reaching. By providing a strong monetary incentive, the Serbian government increased the number of people who chose to get vaccinated. The public health benefits of a vaccinated country are obvious, but a vaccinated county will also boost Serbia’s economy. Economists universally agree that vaccination programs will add billions of dollars to the global economy within the next few years.
The World Economic Forum states that by ending the pandemic, “10 major economies could be $466 billion better off by 2025.” With vaccinations, workers will be able to resume their everyday jobs, businesses can reopen and the economy can flourish. Greater wages will mean greater prosperity for everyone. Due to these economic benefits, Serbia’s vaccination program will likely pay for itself many times over.
Cash Payment Successes
Serbia’s cash incentive strategy may already be paying off. As of August 4, 2021, almost 40% of Serbia’s population is fully vaccinated, significantly more than the majority of Serbia’s Balkan neighbors. Neighboring Bosnia and Herzegovina has only a 7% vaccination rate, and Bulgaria, only 15%. Perhaps these countries, both of which have their own poverty problems, would benefit from Serbia’s vaccination strategy.
Serbia is not the only country to offer rewards for COVID-19 inoculations. In neighboring Romania, Bran Castle offered visitors free admission if they came to receive their shots. Additionally, the U.S. state of West Virginia offered $100 awards to anyone getting a vaccine. Vaccination will allow an individual entry into lotteries where participants will have the chance to win cars, scholarships and even a million-dollar grand prize.
Serbia’s program, however, is one of the first and most ambitious programs to encourage COVID-19 vaccinations. With a cash incentive strategy, Serbia demonstrates how a single action can provide several benefits, reducing poverty at the same time.
– Thomas Brodey
Photo: Flickr