Archive for category: Development

Information and stories on development news.

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Algbra is Bridging the Gap in Financial Inclusion

Algbra is Bridging the Gap Algbra is a “global digital program” for the “unbanked and underserved.” Algbra is bridging the gap in financial inclusion by bringing financial security to developing countries. The emergence of cryptocurrency, artificial intelligence and blockchain technology has spawned endless opportunities within the financial industry. Although these accomplishments are impressive, a shocking 1.7 billion people worldwide are still without access to bank accounts. Banking services offer a convenient and secure money management method, a luxury unattainable for many of the world’s impoverished. Millions of people in developing markets are excluded from the financial system due to “insufficient income levels and market discrimination.” Exclusion from financial services prevents an accumulation of savings, investable funds and asset growth. New World Group vows to bridge the financial inclusion gap in developing countries with the innovative global digital platform, Algbra.

The Algbra Fintech Platform

Algbra is the new London-based fintech platform designed to create a multi-faceted, fair and viable banking experience that fulfills the needs of low-income consumers. The company raised £3.75 million in funds for the Algbra platform, with the aim of educating and uplifting underserved and minority populations so that people can move toward financial freedom.

Algbra is also the first platform of its kind to offer services in consideration of faith-based values. This is a more appealing option for those following the Islamic faith, an unbanked demographic of nearly 800 million people. Some of the products offered by Algbra include “current accounts, foreign exchange, remittances and rewards, with lending products to follow shortly thereafter.”

Algbra’s Impact on Global Poverty

In a study involving 35 countries in sub-Saharan Africa, researchers looked at the impact of financial inclusion on poverty levels among low-income households. Using data from 2011, it was concluded that financial inclusion significantly decreased poverty in sub-Saharan Africa by “providing net wealth and larger welfare benefits” for impoverished people.

On May 19, 2021, Algbra announced its partnership with the Patchwork Foundation, a British organization dedicated to advocating for underprivileged and minority communities to partake in issues of democracy and civil society. Through this partnership, Algbra and the Patchwork Foundation will empower promising young leaders with financial literacy skills and other essential skills. These skills will help the youth become informed policymakers capable of establishing practices that promote social and economic inclusion.

It is important for Muslim women to have a share in financial resources and the opportunity to participate in society’s advancement, all while adhering to Islamic teachings. This is instrumental to economic prosperity for developing countries with large Muslim populations.

However, the World Bank found that the Middle East and North Africa, which are predominantly Muslim regions, have the most significant gender gap in bank account ownership. In these regions, a whole 65% of women are without a bank account compared to 48% of men. Zeiad Idris, CEO of Algbra, believes empowering women by facilitating access to financial services is instrumental to increased economic growth.

How Algbra is Bridging the Gap

The financial industry lacks services that meet the faith-based needs of consumers. As a result, many Muslims limit their usage of financial services. A 2018 Thomson Reuters report indicates that religious considerations prohibited 34% of Afghan individuals and 27% of people in Iraq and Tunisia from utilizing financial services. However in Muslim-majority nations like Jordan, providing Shariah-compliant lending products (loans aligned with religious principles) raised application rates from 18% to 22%, according to a study by Professor Dean Karlan of Yale University.

Shariah compliance prohibits profiting from items or services with the potential to cause harm to people or the environment. Additionally, investors must avoid enterprises that deal with “weapons, alcohol and gambling.” Algbra provides solutions for Muslim consumers who seek Shariah-compliant banking services and solutions. The solutions are also beneficial for environmentally conscientious consumers who are mindful of financial imprints.

The Future of the Financial Industry

Adam Sadiq, CEO of New World Group, explains that a significant amount of people in impoverished nations “face financial exclusion because they cannot open an account at a traditional brick and mortar bank. As a result, they are unable to enjoy the opportunities made possible by economic growth, and in many cases, remain stuck in the poverty trap.” Algbra is bridging the gap in financial inclusion as the latest financial technology innovation aimed at resolving these difficulties through faith-based and inclusive banking services.

– Tiara Tyson
Photo: Flickr

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UN Women’s International Work

Women's International Work
U.N. Women, an entity of the United Nations, strives to improve gender equality and the empowerment of women around the world. Specifically, U.N. Women’s international work involves collaboration with governments and societies to create real change. The organization creates change by working to reform, implement and secure policies, programs, resources and legislation to ensure the rights of women and girls are upheld globally.

UN Women’s International Work

U.N. Women not only works on gender equality in the world but also inside its organization. For example, U.N. Women employs more than 3,000 people of 150 different nationalities in 90 geographical locations, working together on global challenges and initiatives. About 74% of employees are female and employees are supported by staff resource groups such as the Youth Council and the LGBTQI Network. U.N. Women believes that diversity and inclusion create the best workforce and a safe space. This allows room for respect, professionalism and integrity.

U.N. Women began its work in January 2011. The entity brings together four United Nations offices prioritizing gender equality. This includes The U.N. Development Fund for Women (UNIFEM), the Office of the Special Adviser on Gender Issues, the Division for the Advancement of Women (DAW) and the U.N. International Research and Training Institute for the Advancement of Women (UN-INSTRAW). U.N. Women supports the development of gender equality policies and provides technical and monetary support to help countries with their gender equality goals. The entity holds the United Nations as a whole “accountable for its own commitments on gender equality” through ongoing monitoring and assessment.

Issues Impacting Women

U.N. Women’s gender equality work contributed to landmark agreements such as the Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) and the Beijing Declaration and Platform for Action. The organization emphasizes that gender inequality is a problem in every society due to its deeply rooted history. Globally, women do not always receive equal opportunities to men.

Gender wage gaps still exist and women frequently experience discrimination when attempting to garner employment and while working in the workplace. Women lack access to basic necessities such as essential healthcare and education. Women also severely lack representation in politics and economics even though they are significantly impacted by these decisions. However, U.N. Women works to give women and girls a voice at all levels on issues that affect them. In the greater scheme of global poverty, women are disproportionately affected by poverty.

Carol Cassidy

Carol Cassidy is a human rights journalist who has worked on and off with U.N. Women for seven years. In an interview with The Borgen Project, Cassidy explains that that U.N. Women’s focus is international. Cassidy states, “U.N. Women’s major focus is combating violence against women worldwide. Violence takes many forms, from selective abortion, lack of education for women and girls, lack of opportunities for women outside of housework” and more. Cassidy says further that the organization is interested in initiatives that address poverty and violence.

The organization’s main mission is not to overtake projects or programs women have created, but to provide funding and support to allow the programs to flourish. U.N. Women looks to enhance accountability and involve women in general decision-making and conversations within their communities. U.N. Women has worked with countries all around the world, from South Africa to Ukraine. Cassidy was drawn to the organization because she shares similar goals, morals and ethics.

Empowering Women Globally

Cassidy’s past work with U.N. Women includes supporting women’s economic rights in post-conflict zones such as Gaza, Uganda and Sri Lanka. Cassidy recalls a specific example of supporting women. In Gaza, unemployment rates skyrocketed during the war and women came together to build and run a bakery. Women were able to bake goods to sustain families in the community. U.N. Women supported these women by providing funding.

U.N. Women strives to create a world where women have the same opportunities and protections as men. U.N. Women’s international work has helped bridge gender barriers to close the gender inequality gap around the world.

– Lauren Peacock
Photo: Flickr

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Costa Rica’s New Infrastructure Projects

How Costa Rica’s New Infrastructure Will Help Reduce PovertyOn May 4, 2021, President Carlos Alvarado addressed Costa Rica with the State of the Republic, a yearly analysis of the country’s accounts, progress and goals for the future. In his speech, he discussed the various infrastructure projects set to begin in Costa Rica. The projects will create opportunities for employment and reduce poverty across the country. President Alvarado’s plan for Costa Rica’s new infrastructure projects responds to the current economic crisis in the country. Due to the COVID-19 pandemic, poverty in Costa Rica has hit an all-time high since 1992, with 26.2% of families in the country experiencing household poverty.

New Infrastructure to Reduce Poverty in Costa Rica

Costa Rica’s economy is sustained by tourism, a sector that hit a sharp decline as a result of the COVID-19 pandemic. In 2020, Costa Rica’s “economy shrank by 4.5%” while unemployment rose by 6%. The various infrastructure projects which President Alvarado discussed aim to decrease poverty in the country and help bring Costa Rica out of its economic slump.

  1. Road Infrastructure. In his address, President Alvarado emphasized the need for improving roads and bridges across Costa Rica. He remarked that the Government intends on accessing a loan in order to treat all roads in the country with an asphalt seal and improve bridges across Costa Rica. The transformation of Costa Rica’s road infrastructure is a considerable undertaking that would provide thousands of people with jobs. Improving roads will lead to decreased congestion and facilitate transportation throughout the country. This directly benefits Costa Ricans and increases their access to jobs, which would greatly decrease the country’s record-high levels of poverty.
  2. Educational Infrastructure. Another key subject that Alvarado touched upon is the need for equal education opportunities for Costa Ricans. Investing in education infrastructure will help achieve this goal. Education for all Costa Ricans is important because education breaks cycles of poverty. Educating impoverished people on nutrition, health and safety can help them improve their living conditions. Additionally, educating children will provide them with the knowledge and skills to secure future employment and lift their families out of poverty.
  3. Land for Indigenous Groups. President Alvarado has a special recovery plan for indigenous territories. In the State of the Republic, he pledged monetary funding to address the inequities indigenous Costa Ricans experience due to existing legislation. The indigenous groups in Costa Rica have historically been subjected to slavery, displacement and exclusion and are disproportionately affected by poverty. Ensuring indigenous land rights are protected and prioritizing aid for indigenous people’s development would help reduce poverty across Costa Rica.
  4. Public Transportation. President Alvarado discussed an initiative to transition to electric mobility. The President “requested the support of Congress to approve a project to modernize public bus transport.” Additionally, the Costa Rican President introduced the Greater Metropolitan Area Electric Passenger Train, which is expected to generate almost 2,670 jobs, ignite economic growth and attract investors to the country. Another railway project that the President presented to Costa Rica is the Limon Electric Freight Train (TELCA). The construction of public transportation projects will provide Costa Ricans throughout the country with jobs and facilitate transportation between communities in order to spur economic growth.

Costa Rica’s commitments directly benefit citizens and the economy. Costa Rica’s new infrastructure projects show the country’s commitment to developing Costa Rica and reducing poverty.

– Eliza Kirk
Photo: Flickr

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New Deal for Africa to End Dual Crises

New Deal for Africa There is a growing international appeal for “A New Deal for Africa and by Africa” in the wake of slow pandemic recovery and a growing debt crisis. French President Emmanuel Macron hosted a Paris-based summit on May 18, 2021, calling for a new way forward for Africa. Joined by African and European leaders, the summit aimed to address the worsening debt crisis across the African continent.

A Call for International Camaraderie

Highlighting recovery from the COVID-19 pandemic as a key issue, Macron urged leaders to foster a sense of international camaraderie. Macron argued that for there to be a steady return to normal, there must be a collective effort to repair the global economy. Additionally, he advocated that countries adopt a new perspective recognizing the interconnectivity of regional economies. In short, Macron stressed that the health and stability of Africa will determine the health and stability of the world.

As the pace of recovery becomes glaringly disproportionate between nations of varying economic status, Macron stressed that it would not only be unethical to leave Africa behind, it would also be to the detriment of the greater international community. Macron explicitly called for a waiving of patents on COVID-19 vaccines to speed up Africa’s recovery.

Africa’s Debt Crisis

The International Monetary Fund (IMF) warned that Africa’s debt crisis, now nearing $300 billion, will increasingly burden the continent. This crisis will continually arrest economic development in Africa and African nations will fall further behind other nations.

The pandemic has greatly exacerbated this issue. Slow vaccine distribution and lack of pandemic relief packages have led many African nations to fall further behind in development. If the situation continues, experts warn that up to 39 million Africans could fall into poverty before the year ends. Macron highlighted how an increase in poverty rates among Africans will ultimately threaten both international market growth opportunities and international security.

In 2021, the IMF recognized the sub-Saharan region of Africa to be the slowest growing on the planet in terms of GDP. The IMF voiced concern that the pandemic has undone years of economic construction and development for the region. The organization, comprised of 190 countries, fears that the pandemic’s effects will harm poverty reduction efforts for years to come.

A New Deal for Africa

After defining the severity of Africa’s debt crisis, the summit moved on toward establishing solutions. World leaders at the summit agreed a two-pronged approach toward economic recovery was necessary.

Firstly, the summit agreed that the slow vaccine rollout must be addressed. To do this, patents forbidding African manufacturers from concocting their own supplies of effective vaccines must be lifted. The patents had forced African nations to purchase their doses from the patent holders, such as Pfizer, only deepening the debt crisis. Macron states that he hoped to have 40% of all Africans vaccinated by the end of 2021. Secondly, members of the summit agreed to allocate more than $30 billion worth of relief from the IMF to nations in Africa.

In some areas of Africa, vaccine supply is so low that the World Health Organization recommended prioritizing the first dose only in order to partially vaccinate as many people as possible. As of early May 2021, six nations in Africa still had not received any doses and eight other African nations had already exhausted their supply.

Macron advocated for $100 billion to be allocated to the “New Deal for Africa” and wants wealthier nations to donate their IMF relief to Africa. Some members of the summit pushed for even more. For instance, the prime minister of Italy, Mario Draghi, stressed the need for a total restructuring of the debt system in Africa. The summit paved the way for further discussions to help support Africa.

– Jack Thayer
Photo: Flickr

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Costa Rica’s Success as a Nation

Costa Rica’s SuccessWhile numerous well-publicized problems plague many Latin American countries, especially in Central America, Costa Rica’s success as a nation stems from several factors. For decades, Costa Rica has had a more open political system and provided a better quality of life than its neighbors. Costa Rica is considered one of the happiest and most sustainable countries in the world. As news stories of Central America are often negative, Costa Rica provides a success story that inspires hope.

Political Stability and Representation

Since 1949, Costa Rica has maintained a stable and democratic government. Therefore, Costa Rica has avoided the political and gang violence that other Central American countries struggle with. Costa Rica has a strong constitution that enshrines many democratic rights, ensuring that rights are not eroded and that Costa Rican people are represented. Many people credit democratic values for Costa Rica’s success.

Costa Rica’s government has gained a reputation in Latin America for its socially progressive policies. Moreover, these politics led to much greater female representation in government than in many comparable countries. The nation has had a female president and has a very high proportion of women in its legislature. Women now comprise 45.6% of the legislature, which is the ninth-highest in the world.

The Economy, Education and Healthcare

Costa Rica has one of the most developed economies in Latin America. The economy is generally stable and had not experienced a significant downturn in decades until the COVID-19 pandemic hit. The poverty rate halved in the past two decades and the country maintains a strong export economy. The country grows at an economic rate of 2.5%  annually. Costa Rica’s success in the economic realm is also because the government does not have an army, freeing up funds to spend on social programs and development.

Costa Rica is considered an upper-middle-income country with the lowest poverty rate in Central America. About 20% of the country earns less than $155 a month, pushing them into the poverty category. In terms of the international poverty line, less than 2% of Costa Ricans are considered impoverished —  an impressive accomplishment.

Costa Rica has a high-quality education system and its citizens have a high reputation for being well-educated. Education in the country is sufficiently accessible. Furthermore, according to the World Economic Forum, Costa Rica invested 8% of its GDP into education in 2019. Costa Rica has the second-highest life expectancy in North America, just behind Canada. Furthermore, the country’s robust healthcare system is considered to be one of the best in Latin America.

Happiness and Sustainability

Costa Rica was ranked the most sustainable and happy country on Earth by the Happy Planet Index. The country’s commitment to green energy and environmental sustainability can provide an example for the rest of the world. Costa Rica generates more than 99% of its energy from renewable sources, primarily relying on hydropower. It has also reversed deforestation and designated one-third of its land as protected natural reserves. This environmental protection preserves the country’s beauty and supports the tourism industry, a vital part of the economy.

– Clay Hallee
Photo: Flickr

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Land Restitution In Colombia

Land grabbing has been a problem in Colombia for several decades, particularly for those living in rural areas. A mixture of political and business corruption, rebel groups, paramilitary organizations and drug smuggling has led to the displacement of many Colombians from the properties they own or inhabit. At their peak, land grabbers of varying organizations illegally held almost 15% of the land in Colombia. As a result, between 6 and 7 million people have had no choice but to leave their homes in search of alternative dwellings. As of 2011, that has all begun to change with land restitution efforts.

Law 1448

In 2011, Colombia introduced Law 1448, also known as the Victims and Land Restitution Law. The objective of the law is straightforward: return illegally held land to its rightful owners. As a direct result of the law, the government established a Land Restitution Unit. This unit aids Colombian citizens in the court system to help them understand how they can file for land restitution. The law also provides some leeway for those who might no longer have the physical documents that prove they own the land, which is frequently the case.

Resolution 181

Two years later in 2013, Colombia also passed Resolution 181. This law is designed to prevent land grabbing in the future. It helps new landowners properly obtain titles and registration documents to ensure that their land cannot be illegally taken or abused. It is another law that works at the judicial level to give proper guidance to those who might not be well versed in property law and related regulations. Both of these laws are designed to work in conjunction with one another to look after those living in impoverished and/or rural communities. They ensure that if and when land grabbing issues do arise, the courts will be able to review official documentation that clearly proves who owns what.

Technology Helping These Efforts

In addition to these laws, the National University of Colombia has designed a system that is significantly safer for storing land-related documents. Land titles and registrations now go directly into a blockchain designed exclusively for property owners. Blockchain technology is highly regarded as being the safest way to save information since everything is decentralized. That means that no single entity controls the data. In a blockchain, every user can see any new or old activity and monitor if something looks suspicious.

Hacking a blockchain is extremely difficult and no one in history has ever managed to do so. Hacking a blockchain is so difficult because any time a new block is created, there is information that links it back to every existent block. So if a hacker wants to change the code of a block in order to sign over a land title to himself rather than the intended owner, every single block in the chain needs to be manipulated to agree with that change. It also needs to be done before anyone notices that a change has occurred. There could be tens of thousands, if not hundreds of thousands of blocks in the blockchain for Colombian property ownership.

Next Steps

Colombia is moving in the right direction. Law 1448, Resolution 181 and blockchain implementation have been vital to land restitution efforts. Since 2011, rightful owners have reclaimed over 740 thousand acres of previously stolen land. While that number might sound large, more than 5 million acres of land still remain in limbo. To make land restitution efforts as effective as possible, Law 1448 and Resolution 181 must be enforced far beyond 2021. The proper framework is in place, but the Colombian government has to remain active in helping its citizens reclaim what is rightfully theirs.

– Jake Hill
Photo: Flickr

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4 Things to Know About Nigerian Infrastructure

Nigerian InfrastructureNigeria is located in West Africa and shares a border with Niger to the north and the Atlantic Ocean to the south. The hundreds of different languages spoken in the country characterize its diverse population. The country benefits from a relatively large population and economy but it still has a high poverty rate. Reducing the poverty rate will require better Nigerian infrastructure that will expand the economy to reach the countries rural population.

4 Facts About Nigerian Infrastructure

  1. A public-private partnership is the core strategy. The government has acknowledged the importance of private sector help to reduce the infrastructure deficit which has been a thorn in the side of an economy that shows immense potential. The Nigerian vice president, Yemi Osinbajo, clearly outlined what the government believes the role of the private sector should be as it pertains to improving Nigerian infrastructure. He pointed out that the private sector, which accounts for 92% of the country’s GDP compared to the public sector accounting for a mere 8% of the GDP, shows the limits of public expenditures and budgetary allocations. Osinbajo says it could require $3 trillion over 30 years in infrastructure investment to resolve the infrastructure deficit. Osinbajo included that the country would see a lot of benefit from large investments from the private sector whether it be from local or foreign resources.
  2. The president is promoting private investment in infrastructure. President Muhammadu Buhari of Nigeria recently approved the creation of a new development firm called Infra-Co, which will be backed by an infrastructure fund worth $2.63 billion. The hope is to improve the transportation and power networks that have held back the 40% of Nigerians living below the poverty line — a staggering number for a country that boasts the biggest economy and population in Africa. It has been reported that KPMG will serve as the transactional advisor to the fund which further legitimizes the government’s plan to boost Nigerian infrastructure through partnership with the private sector.
  3. Nigeria is investing heavily in railway construction. The construction of the Lagos-Ibadan rail created history in West Africa as being the first double-track standard gauge rail in the region. The Lagos-Calabar railway is another large project costing $11 billion and running 1,400 kilometers long, which connects the western and eastern parts of the country.
  4. Other key infrastructure projects. Other infrastructure projects in Nigeria include the World Trade Centre, the Lekki Free Trade Zone and the Abuja Gateway Airport. The World Trade Centre and Lekki Free Trade Zone will create more business opportunities for foreign and local investors and increase tourism and entertainment. It will also boost commercial and residential real estate development. The Abuja Gateway Airport will be an architecturally appealing addition to the Abuja Airport. Its design will include features that symbolize the countries diverse culture. The use of solar power, green roofs and locally made laterite clay will help contribute to an environmentally friendly and modern design. All three of these projects seem to be an attempt to bring about more economic opportunities by making Nigeria’s richest cities more welcoming and luxurious for foreign investors.

The increased business opportunities created by the heavy investments in Nigerian infrastructure will significantly help the economy. The railways will allow more Nigerians across the country to work better jobs in wealthier cities such as Lekki city. But, the infrastructure spending still needs to expand to the country’s rural parts so that every Nigerian can be involved in the rapidly growing economy. Nevertheless, Nigeria is making developmental strides and its rapid economic progress should be viewed as a success.

– Stephen Blake Illes
Photo: Flickr

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Inequalities Among Migrant Workers in Lebanon

Migrant workers in Lebanon
For decades, the Lebanese economy has relied heavily on migrant workers to supplement the workforce. The economy provided necessary domestic services and filled up low-level positions in retail, salons and hospitality. The kafala system, a program that encourages employers to hire migrant workers in Lebanon, fueled a sense of dependence on migrant workers in various industries. This institution creates great racial and economic inequality. The employers abuse the migrant workers and offer them substandard pay and inhumane working conditions. This immense disparity worsened during the COVID-19 pandemic. The employers placed workers in unsafe situations, forcing them to endure terrible conditions with the imminent threat of job termination.

Refugees and the Kafala System

Currently, refugees and migrant workers make up a quarter of Lebanon’s population. This renders them an extremely valuable sector of society. Tensions between local-born Lebanese citizens and refugees developed during past years. Lebanese individuals and armed forces committed several acts of violence against refugees out of spite and anger. In addition, nearly 90% of Syrian refugees become unemployed and unable to meet housing costs in 2020. Employers fired domestic migrant workers at an alarming rate since the pandemic.

The Anti-Racism Movement found that Lebanese employers terminated their migrant workers, likely due to racial bias. Nevertheless, gaining Lebanese citizenship as a migrant worker is nearly impossible. Due to an antiquated nationality policy set up during the French mandate, only children born to a Lebanese father may obtain full legal status as a Lebanese national. Thus, no feasible pathway exists to permanent residence and legal protection for migrant workers in Lebanon. They end up at the mercy of their employers to keep them in the country.

Medical Inequality Among Migrant Workers

For many migrant workers, medical inequality has become especially prominent during the COVID-19 pandemic. Due to the cruel implements of the kafala system, migrant workers rely on their employers to provide them with legal residency status. Without Lebanese nationality, these workers do not have entitlement to these benefits that other people within Lebanon possess. Lack of health coverage discourages these migrant workers from seeking out medical help and accessing the treatments they need to ensure their personal wellbeing. As unemployment has continued to rise, thousands of migrant workers are left with no healthcare or legal status. They must return to their home countries, despite the potential endangerment that awaits them.

In an international relations briefing by Natasha Hall, the author notes that “ensuring that people are not prioritized for medical treatment by nationality, as medicine disappears from shelves and intensive care units fill up, is another serious concern.” Migrant workers in Lebanon end up not being able to access treatments due to a lack of insurance and inadequate financial means. This is similar to the United States and other countries that experience inequality. Lebanon faces economic complications, such as inflation rates rising and banks refusing to withdraw money for their customers. It has become nearly impossible for people to obtain the medications they need. Lebanon sustains its medication supply due to imported drugs. Due to the trade challenges facing the nation, Lebanese citizens cannot obtain medicine for their health conditions.

Hope for an End to Migrant Worker Inequality

The kafala system is extremely ruthless. It puts migrant workers at a socio-economic position far below the average Lebanese citizen. This caused a public outcry, sparking change and encouraging reform to the system. According to the Human Rights Watch, “Amendments to the system [in 2020] provide guarantees for workers including 48-hour work weeks, a rest day, overtime payment, as well as sick and annual leaves. Workers can now terminate their contracts without their employer’s consent.” Increased regulations have provided an added layer of protection to the rights of migrant workers in Lebanon.

– Luna Khalil
Photo: Flickr

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Girl Designs Solar-Powered Iron to Fight Poverty

solar-powered iron
India possesses the second-highest worldwide population with 1.2 billion people. Poverty in rural areas leaves local Indians unable to find job security. They instead must resort to street vending. Approximately 10 million street vendors exist in India, with many representing the laundry and textile industries. In particular, impoverished Indian families tend to choose the path of ironing clothes, a lucrative business considering the needs of everyday workers. However, there is one downside of the traditional method of ironing clothes in India: charcoal powers the irons. Luckily, a 14-year-old girl named Vinisha Umashankar recognized this energy source’s impact on the environment and innovated a solar-powered iron to create a renewable alternative to coal in India.

The Importance of Street Vending in India

Two kinds of retail industries exist: organized and unorganized retail. The latter represents the main retail industry in India. Unorganized retailers lead a solid 97% of businesses in the country, including local stores, family-run shops and street vendors. The sector of unorganized retail is the second-largest source of employment in India following agriculture. This demonstrates how much these workers crucially rely on their jobs for financial security. Those who have education but are jobless, or who suffer from poverty, benefit from the consumer familiarity and low-cost structure of the unorganized retail sector. Additionally, Indian small-store retailing generates self-employment relatively easily and does not require much investment in labor, land or capital.

India’s Pollution Problem with Charcoal

Early Indian society used a coal-fuelled iron box to smooth out clothing. Street vendors who iron clothes rely heavily on coal to power their equipment. There are some 10 million ironing carts in India and each cart uses more than 11 pounds of charcoal daily.  Given the hot and dry summers in India, cotton clothing requires washing and ironing on a daily basis. The high demand for ironing is escalating the use of coal and intensifying the smog issue in India.

The monsoon season from June to September poses an additional threat to the quality of the environment. Due to heavy rains, the coal becomes damp, causing an increase in the total weight bought by vendors. The moisture of the water, however, also reduces the warmth the charcoal produces when burned. Also, in the winter, as the price of coal naturally rises, suppliers purposefully add additional water to extend their product. Therefore, intense rain means increased spending on coal for the irons, further intensifying the cycle of Indian poverty.

Coal supplies approximately 72% of India’s electrical needs. The reliance on coal energy presents challenges regarding rising smog levels and respiratory conditions in cities. Coal power plants emit toxic gases and particulate matter that can penetrate human lungs. A reaction between sunlight and the nitrogen oxides that coal-powered plants release causes smog. The more people burn coal, the more smog that will emerge. However, coal is still a cheaper alternative to other, cleaner, forms of energy in India. Most people do not have the means to finance renewable energy.

Vinisha Umashankar’s Solar-Powered Iron

Vinisha Umashankar, an Indian teen with great concerns for the Indian air, developed an alternative to coal-powered irons. She suggested that they use solar-powered irons to harness the energy in the sun. This innovation promises to improve the poverty associated with the ironing industry as well as the environmental issues it causes. India receives enough sunlight to produce solar power 3,000 times more than its total current energy consumption. Her innovation to eliminate the use of charcoal in the ironing industry received the Children’s Climate Prize, comprising 100,000 Swedish krona ($11600) to further aid the project.

Umashankar also developed a solar-powered street cart. Similar to the solar-powered iron, Umashankar designed the model with functionality and cost-efficiency in mind. Individuals can use the cart effectively after only 15 minutes of tutorials. The solar-powered batteries charge in under five hours and last for six hours.

Overall, the goal of the solar-powered iron and cart is to improve the economic and health outcomes of the street vendors working in the ironing industries. In the long run, with further innovation, Umashankar intends to develop a cart prototype with solar panels and batteries that could last up to eight years. This ambitious plan favors sustainability for two parties: vendors and the environment.

Looking Ahead

With innovations like Umashankar’s solar-powered iron, India shows promise for improved environmental conditions and reduced poverty rates. Although expensive, new technologies are constantly emerging and individuals as young as 14 years old are working to prioritize cost-efficiency and sustainability. Given the fact that street vending is a widespread market in India, a solar-powered iron has the potential to transform the harmful coal-sourced iron industry into one that is profitable and environmentally conscious.

– Sarah Frances
Photo: Unsplash

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Examining the Updates on SDG 8 in China

Updates on SDG Goal #8 in China
The global economy is an ever-changing and ever-expanding system. Whether through the opening of new markets, job creation or GDP fluctuations, one can measure the success of an economy in numerous ways. However, attempts at sustainability goals receive more specific judgment. The Sustainable Development Goals (SDGs) measure the success of an economy not only in regard to its growth but also that growth’s sustainability. Many countries with SDGs are those that have a pivotal impact on the world economy overall. This correlates with positive updates on SDG 8 in China, which commits the nation to the achievement of full employment for all citizens by 2030.

Laying the Economic Foundation

The Chinese economy has undergone many changes over the centuries. In the first 1,500 years, China followed the policy of Isolationism strictly. In the next few centuries, China gradually opened to the European countries. Many countries such as Germany, Russia and England vied for control over many of China’s crucial exports and markets. By the 20th century, China faced more pervasive and detrimental economic factors. It suffered from the toll of its countless Opium Wars as well as the resulting strain of having to compete with other countries vying for its resources. But by the mid-21st century, the post-WWII economic boom rejuvenated and then expanded China into the economic force that it is today.

Positive Correlations for SDG 8 in China

There are positives to China’s economic growth. World reliance on Chinese goods does not have a parallel, with China occupying a large percentage of the world’s imports. Furthermore, the particular rise in GDP in Beijing, which now accounts for 5% of China’s GDP, indicates the importance of Beijing as an ever-growing and pertinent city in China and the world’s economy.

Beijing itself has also sought to expand the visibility of industrialization in China. For example, Beijing devised a plan to push 15 million people into workplace training, as well as the expansion of 11 million more jobs by the end of 2021. China’s rise in GDP is so colossal that it actually managed to grow by 2.3% during the COVID-19 pandemic while many other prominent economies have dropped by 2.3%. This suggests positive updates on SDG 8 in China for development and job creation. Furthermore, estimates of China’s GDP, if its growth continues, could overtake the U.S. economy by 2028. If the value of Chinese currency continues to increase, it could accelerate this rise by 2026.

The Challenges

The results of these estimates are promising, but they are still only estimates. Moreover, there are prominent issues when it comes to the area of decent work. China’s advancing industrialization puts profound stress and lack of availability on its rural citizens. Those left behind in China account for about 30.46 million and are confined to the rural areas in China.

One of China’s main problems is the uncertainty of it all. Furthermore, a Communist government controls China. As a result, the political system suffers from high amounts of censorship and misinformation. Eric Hu accounted in the New York Times that “China is both the world’s newest superpower and its largest authoritarian state.”

Hu’s and similar statements acknowledge the economic power of China. However, the nature of China’s political system does question the validity of its informative claims, including those of an economic nature. China resists forfeiting government control or enlisting the aid of NGOs. In fact, many successful NGOs have to operate without government permission in order to assist people facing poverty. Yet, there is some improvement in this area, with available NGOs like Jiangxi bringing 500,000 yuan to struggling Chinese villages as well as financial plans for its disbursement.

Meeting Opportunities

China’s middle class may be on the rise, as well as its GDP and hopeful updates on SDG 8 in China. However, in order for true advancement to occur, there needs to be a greater emphasis upon financial aid and transparency towards its citizens who are in poverty and even extreme poverty. If this occurs, coupled with China’s impressive GDP growth, the country could attain many economic benefits.

– Jacob Hurwitz
Photo: Flickr