the AfCFTATrading within the African Continental Free Trade Area (AfCFTA) finally took effect on January 1, 2021. The AfCFTA is the world’s largest trading area since the establishment of the World Trade Organization with 54 of the 55 countries of the African Union (AU). The AfCFTA was established by the African Continental Free Trade Agreement signed in March 2018 by 44 AU countries. Over time, other AU countries signed on as the official start of trading under the provisions of the agreement approached. The AfCTFA is projected to create opportunities and boost the African economy. By facilitating this intra-African trade area, the international community expects sustainable growth and increased economic development.

The Implementation and Benefits of the AfCFTA

  1. Creating a Single Market. The main objective is to create a single market for goods and services to increase trading among African nations. The AfCFTA is tasked to implement protocols to eliminate trade barriers and cooperate with member states on investment and competition policies, intellectual property rights, settlement of disputes and other trade-liberating strategies.
  1. Expected Economic Boost and Trade Diversity. UNECA estimates that AfCFTA will boost intra-African trade by 52.3% once import duties and non-tariff barriers are eliminated. The AfCFTA will cover a GDP of $2.5 trillion of the market. The trade initiative will also diversify intra-African trade as it would encourage more industrial goods as opposed to extractive goods and natural resources. Historically, more than 75% of African exports outside of the continent consisted of extractive commodities whereas only 40% of intra-African trade were extractive.
  1. Collaborative Structure and Enforcement. All decisions of the AfCFTA institutions are reached by a simple majority vote. There are several key AfCFTA institutions. The AU Assembly provides oversight, guidance and interpretations of the Agreement. The Council of Ministers is designated by state parties and report to the Assembly. The Council makes the decisions that pertain to the Agreement. The Committee of Senior Trade Officials implements the decisions of the Council and monitors the development of the provisions of the AfCFTA. The Secretariat is established as an autonomous institution whose roles and responsibilities are determined by the Council.
  1. Eliminating Tariffs. State parties will progressively eliminate import duties and apply preferential tariffs to imports from other state parties. If state parties are a part of regional trade arrangements that have preferential tariffs already in place, state parties must maintain and improve on them.
  1. Settling Trade Disputes. Multilateral trading systems can bring about disputes when a state party implements a trade policy that another state party considers a breach of the Agreement. The AfCFTA has the Dispute Settlement Mechanism in place for such occasions which offers mediated consultations between disputing parties. The mechanism is only available to state parties, not private enterprises.
  1. Protecting Women Traders. According to UNECA and the African Trade Policy Centre, women are estimated to account for around 70% of informal cross-border traders. Informal trading can make women vulnerable to harassment and violence. With the reduced tariffs, it will be more affordable for women to trade through formal channels where women traders will not have to put themselves in dangerous situations.
  1. Growing Small and Medium-Sized Businesses. The elimination of import duties also opens up trading activities to small businesses in the regional markets. Small and medium-sized businesses make up 80% of the region’s businesses. Increased trading also facilitates small business products to be traded as inputs for larger enterprises in the region.
  1. Encouraging Industrialization. The AfCFTA fosters competitive manufacturing. With a successful implementation of this new trade initiative, there is potential for Africa’s manufacturing sector to double in size from $500 billion in 2015 to $1 trillion in 2025, creating 14 million stable jobs.
  1. Contributing to Sustainable Growth. The United Nations 2030 Agenda for Sustainable Development includes goals that the AfCFTA contributes to. For example, Goal 8 of the Agenda is decent work and economic growth and Goal 9 is the promotion of industry. The AfCFTA initiative also contributes to Goal 17 of the Agenda as it reduces the continent’s reliance on external resources, encouraging independent financing and development.

AfCFTA: A Trade Milestone for Reducing Poverty in Africa

The establishment of the AfCFTA marks a key milestone for Africa’s continental trade system. The size of the trade area presents promising economic development and sustainable growth that reaches all market sectors and participants. Additionally, the timing of the initiative launch is expected to contribute to the alleviation of the pandemic’s economic damages.

Malala Raharisoa Lin
Photo: Flickr

Hemp production in PakistanIn September 2020, the Pakistani Government approved industrial hemp production, legalizing hemp and allowing hemp farming in agricultural sectors. Hemp is a type of cannabis plant, used commonly for medicinal purposes due to its cannabidiol (CBD) concentration. Considering the many benefits of hemp production, this landmark decision brings exciting possibilities for many areas in Pakistan. Since the economy of Pakistan has been long in need of a boost, the new approved hemp production and legalization is said to bring economic benefits to the country.

The Economic Benefits of Hemp Production

Officials in Pakistan’s government encouraged hemp legalization and production in efforts to relieve fiscal deficits and Pakistan’s struggling economy. Considering the industrial hemp market is worth about $25 billion globally, Pakistan’s science and technology minister, Fawad Chaudhry, says Pakistan is aiming for a profit of $1 billion over the next three years by joining the global hemp market. Exports in hemp can target CBD oils and cannabis-based products and can be a sustainable cotton replacement during slowdowns within the cotton industry.

A Sustainable Replacement for Cotton

Hemp production in Pakistan is most exciting to the workforce, especially for farmers participating in hemp markets and those working within the cotton industry. Cultivating hemp will create more jobs for the small-scale farmers responsible, but more importantly, become a sustainable replacement for cotton in Pakistan’s markets. As the fourth biggest cotton producer in the world, Pakistan’s cotton production has been declining due to climate change, water scarcity, locust attacks and industrial imbalances such as declining prices and low-grade seeds. The hemp plant’s stalk has strong properties of cellulose-rich fiber which is an effective ingredient in the making of paper, rope, construction and reinforcement materials, due to its strong fiber components. Hemp, therefore, makes for a worthy sustainable replacement to cotton.

Hemp Research Possibilities

For researchers, hemp production in Pakistan is exciting for many reasons. With the new hemp legalization, hemp research is no longer taboo, according to Muhammed A. Qayyum, an advisor in the Pakistani government and the director of Medics Laboratories. With this new allowance, researchers can delve into more potential applications of hemp in medicine and more.

Medicinal Properties of Hemp

Advocates have listed numerous medicinal properties to hemp, more specifically, the chemical cannabidiol (CBD) within the plant. Cannabis is seen as medically beneficial as the cannabinoid compound is said to relieve pain and regulate appetite, mood, memory inflammation, insulin sensitivity and metabolism. Hemp is also a valuable food supplement, incorporated in gluten-free products to increase nutritional value from hemp’s high levels of fiber and proteins.

The Potential of the Hemp Industry in Pakistan

With this new federal approval, Pakistan can enter global markets as a new exporter of CBD with the ability to generate millions of revenue similar to China, the United States and India. Hemp production in Pakistan opens up a wide range of possibilities but also brings thousands of jobs across multiple fields such as farm work, production, marketing, transportation, research and medicine. As a flexible crop, the hemp market can address several demands, from textiles, clothing, home furnishing and industrial oils to cosmetics, food and medicine.  Holding an overall market value of more than $340 billion and 263 million cannabis consumers worldwide, Pakistan’s economy can shift dramatically with the newly approved hemp production.

Linda Chong
Photo: Flickr

investing in BrazilThere are numerous reasons to invest in foreign aid in general. That can include partaking in growing the global economy, promoting international human rights and opening donor countries to potential investment returns. What makes Brazil a particularly good market to invest in is its promising role in the global economy. There are several reasons why investing in Brazil is beneficial.

COVID-19 Response

As of January 2021, Brazil has the third-most COVID-19 cases worldwide. The Brazilian economy was not in its best shape at the start of the pandemic because it has not fully recovered from the 2014-2015 recession. This made the economy vulnerable to precarious economic shocks that resulted in increased poverty, unemployment and small business fragility.

The COVID-19 pandemic has left countries like Brazil with possible lasting economic damages. Many emerging and developing countries rely heavily on foreign aid for financial and humanitarian support. Offering foreign aid to Brazil will not only help pave the way for a domestic post-COVID recovery but also alleviate some of the negative impacts of the pandemic through humanitarian benefits.

Diversified Opportunities in Emerging Markets

The Brazilian economy is classified as an emerging market. Emerging markets are economies that are transitioning into a developed economy. Since the launch of the MSCI Emerging Market (EM) Index in 1988, which measures portfolio performances of emerging markets, investing in emerging countries proved to create new and diversified opportunities outside of common markets.

Market Expansion and Economic Growth

Since 2016, Brazil has shown an increase in GDP growth with approximately a 1.3% increase. In 2020, Brazil fell back into recession because of COVID-19. However, Brazil’s economy displayed growth and has played an important role in the growth of the Latin American economy as it makes up 35% of the Latin American GDP. It is approximated that the Brazilian market reaches 900 million consumers in just the Americas.

On how quickly the Brazilian economy rebounded, Bloomberg reports boosted domestic demand and exports with a 9.47% rise in economic activity index from July to September of 2020 in comparison to the previous months.

As Brazil recovers from COVID-19’s economic impact, it leaves opportunity for foreign investors to take advantage of Brazil’s growing market, especially with its low interests. Some of Brazil’s profitable sectors include real estate and agricultural goods like coffee, sugar cane, corn and soybean. Participating in these sectors expands Brazil’s domestic market and hence the world market size.

Geographical Location

Especially for the United States, Brazil’s proximity allows easier trade. For other advantages, Brazil’s geographical properties for the agriculture sector also make its commodities attractive. Approximately 28.7% of land is used for agricultural production which makes up more than 4% of the annual Brazilian GDP. Following China, the United States and Australia, Brazil has the fourth-most amount of agricultural land.

Foreign Investment Returns

Encouraging enterprises to invest in foreign aid can ultimately result in great returns. A common type of foreign aid for these corporations is Foreign Direct Investment (FDI). Through FDIs, corporations can potentially gain lasting interests, multinational consumers and flexible production costs. This type of foreign aid also brings developing countries like Brazil innovative technology, investment strategies, jobs and infrastructure from investing corporations of developed nations.

Foreign investment is critical to developing and emerging markets. Investing in Brazil promotes development and sustainability and also benefits foreign investors greatly. Furthermore, foreign investment assists economic recovery following unforeseen economic shocks like that of the COVID-19 pandemic.

Malala Raharisoa Lin
Photo: Flickr

Sustainable Development in Chad
Chad, a landlocked country in Sub-Saharan Africa, is one of the poorest countries in the world. With a poverty rate of around 40%, Chad’s life expectancy is only 58.3 years. Only two million of the roughly four million people in dire need of assistance are actually receiving any. Additionally, Chad is surrounded by countries undergoing civil wars, putting further pressure on its infrastructure through refugee flows and inhibiting sustainable development in Chad.

Chad was also hit especially hard by the HIV/AIDS epidemic, with 120,000 people living with HIV in 2018. HIV/AIDS in Chad spread quickly due to a lack of healthcare infrastructure. The country has very few healthcare workers. There are only 3.7 doctors for every 100,000 people throughout the entire country. This is even worse in rural areas, given that healthcare workers are concentrated in just 1 region. In this 1 region, 65% of the entire country of Chad’s doctors practice medicine.

Africare Background

Fortunately, some organizations are stepping in order to try and solve this problem through sustainable development. These organizations believe that the best way to ensure that Chad can grow and reduce poverty is to build business infrastructure locally to create long-term growth. One such organization is Africare. Founded as a partnership between Africans and Americans in 1970, this organization has since grown to span much of the continent. Overall, they have donated approximately $2 billion dollars since 1970 towards developing the economies of 38 African countries.

Africare in Chad

The focus of Africare is on sustainable development, attempting to build enough capacity within countries to make sure the country can sustain itself and reduce poverty in the long term. One notable program in Chad is the Initiative for the Economic Empowerment of Women Entrepreneurs (IEEWEP). The IEEWP, founded in 2008 seeks to uplift communities by providing education, skills training, and economic assistance to women in order to allow them to start businesses. The ultimate goal is to foster sustainable development in Chad.

Success Stories

The IEEWP has been a big success. The projects to develop human capital have already generated returns. Within the first three years of its existence, 1,600 women were trained by the IEEWP, increasing their incomes by 60%. Africare has also encouraged women to become more involved and take more of a leadership role at a local level. One important way they accomplish this is by making sure that 95% of their field staff are women, thus ensuring that women possess a voice within the communities they serve. Putting women at the forefront of the organization, Africare hopes, can help create sustainable development in Chad.

The IEEWP works by partnering with local communities and entrepreneurs in order to support them. In one program, the IEEWP worked with a group of 18 existing entrepreneurs in order to start a restaurant. In 2006, 18 women, calling themselves “Mbailassem” or “God help us”, partnered to produce cassava together on a farm. Seeing their drive, the IEEWP decided to help Mbailassem start a restaurant in Southern Chad.

After initially assisting in running the restaurant, and helping with some financial objectives, the restaurant eventually became economically sustainable and paid their loans back within a year. The women of Mbailassem also succeeded in starting a new location of their restaurant, further improving both their own economic situation and the economic situation of the communities they are working in. Africare hopes that entrepreneurs like Mbailassem can help build sustainable development in Chad, and ultimately all across Africa.

Moving Forward

Overall, Chad is struggling to see long-term growth across the country. However, progress on a smaller scale in individual communities concerning the growth of businesses shows some promise. Applying this same model in various communities across the country could help foster sustainable development in Chad.

Thomas Gill

Photo: Flickr

RCEP will benefit Asia's impoverishedOn November 15, 2020, 15 Asia-Pacific countries signed The Regional Comprehensive Economic Partnership (RCEP). The RCEP is a free trade agreement (FTA) establishing new relationships in the global economy. The 15 countries that signed the trade deal account for 30% of all global gross domestic product and impact more than two billion people. The new economic opportunities that will emerge from the RCEP will benefit Asia’s impoverished.

The Introduction of the RCEP

In 2011, the Association of Southeast Asian Nations (ASEAN) Summit introduced the RCEP. Simultaneously, another free trade agreement, the Trans-Pacific Partnership (TPP), was undergoing development. The TPP’s existence failed to come to fruition when former U.S. president, Donald Trump, removed the U.S. from negotiations in 2017. Consequently, this led many Asia-Pacific nations to negotiate with each other to make the RCEP become a reality. The ASEAN Secretariat has declared the RCEP as an accelerator for employment and market opportunities. The RCEP has been seen as a response to the absence of U.S. economic involvement and a form of stimulating the economy due to the COVID-19 pandemic.

RCEP Regulations

The RCEP has a set of new regulations that made it enticing for many nations to join. As much as 90% of tariffs will be eliminated between participating countries. Moreover, the RCEP will institute common rules for e-commerce and intellectual property. The trade deal will also include high-income, middle-income and low-income nations.

RCEP Benefits for the Philippines

Allan Gepty, a lead negotiator from the Philippines, assures that the RCEP will benefit the low-income country in many ways. The RCEP will mean more investments in sectors such as e-commerce, manufacturing, research and development, financial services and information technology. Moreover, the trade secretary, Ramon Lopez, also believes the Philippines will benefit because the RCEP will bring job opportunities. In a country where the poverty rate stood at 23.3% in 2015, the RCEP will benefit Asia’s impoverished.

Supporting Myanmar’s Economic Growth

According to the World Bank, a way to promote the reduction of poverty in Myanmar is supporting the private sector to create job opportunities. Furthermore, vice president of the Asian Investment Bank (AIIB), Joachim von Amsberg, also believes the RCEP will benefit Asia’s impoverished. He sees the RCEP as a way to grant small and medium-sized enterprises (SMEs) more access to markets, thus creating more job growth and promoting infrastructure development.

Industries Impacted by the RCEP

Many other nations will benefit from the RCEP as well. Textile and apparel (T&A) is a key sector under the RCEP. While countries such as Australia and Japan have high labor and production costs, many others do not. The RCEP will increase investment to lower-cost and less skilled countries such as Myanmar, Cambodia and Laos. The trade deal will also impact the country of Vietnam. Vietnam will benefit from its exports which include footwear, automobiles and telecommunications. Furthermore, Vietnam is could also benefit from the exporting of agriculture and fisheries products. Malaysia anticipates greater opportunities in travel, tourism and the aviation industry. Malaysia is expected to increase its GDP between 0.8% and 1.7% through the RCEP.

The Potential for Poverty Reduction

The RCEP is the biggest trade deal in Asia-Pacific’s history. The trade deal is predicted to add US$186 billion to the global economy and 0.2% to the gross domestic product of each participating nation. Also, free trade agreements allow emerging economies to become more sustainable. According to the World Bank, poverty is reduced by boosting international trade. Global trade expands the number of quality jobs and encourages economic growth. The RCEP came at a time when there are future uncertainties due to the COVID-19 pandemic and its economic impacts. Many anticipate that the RCEP will benefit Asia’s impoverished.

Andy Calderon
Photo: Flickr

Vanuatu's Graduation Vanuatu is a southwestern Pacific Ocean country made up of about 80 islands with a small population of around 300,000. Vanuatu has recently graduated from the list of least developed countries (LDC) despite setbacks due to ongoing natural disasters and other factors. Vanuatu’s graduation from LDC status took place on December 4, 2020. It was first recognized as an LDC in 1985.

What is the Least Developed Country List?

Less developed countries are countries that struggle with maintaining sustainable development, causing them to be low-income countries. In 1971, The United Nations created a category list of the least developed countries in the world. The United Nations reviews and checks the list every three years based on the country’s economic vulnerability, income per capita and human assets. There are currently about 46 countries on the least developed country list. Angola is another country that will be scheduled for its graduation in 2021. Vanuatu has recently joined the five other countries that were able to graduate since the creation of the least developed country list.

Although less developed countries are economically vulnerable, they receive special international aid to help with creating sustainable development. These countries also have specific trade with other nations that are not accessible to more developed nations. This is why less-developed nations are sometimes referred to as “emerging markets.” The majority of the support that countries in the least developed countries list receive is either directly from or set up by the U.N. Committee for Development Policy.

The Success Behind Vanuatu’s Graduation

Vanuatu graduates form the least developed country list despite major setbacks due to climate change, natural disasters and the COVID-19 pandemic. Similar to other countries that graduated, most of Vanuatu’s success is as a result of the international aid which enabled the country’s stable economic growth. In addition to the aid, Vanuatu has also had success in its strong agriculture sector. The increased diversification in agricultural crops and stocks has helped with the per capita income and human assets criteria for the least developed countries list.

When it comes to the economic vulnerability criteria, Vanuatu is still at risk despite graduating. The risk of economic vulnerability stems from the prevalent natural disasters. Even though the country has shown consistent economic growth, the external shocks from natural disasters are out of the country’s control as it faces about two to three disasters a year. However, there is still a great chance that Vanuatu will have continued success in maintaining sustainable development.

Maintaining Sustainable Development

The most well-known source of maintaining sustainable development for less developed countries is through international aid. Even though Vanuatu has graduated from the least developed country list, the country still is able to receive aid and continue its trading relationships with countries it was given priority to when classified as a less developed nation. For instance, Vanuatu had still received $10 million in emergency aid from the World Bank organization. The funding was for the impact that both COVID-19 and a tropical cyclone had on Vanuatu earlier in 2020.

Significant Success for Vanuatu

Vanuatu’s graduation from the least developed country list is a significant achievement that demonstrates the country’s ability to maintain consistency in its economic growth, while also overcoming challenges such as the COVID-19 pandemic and natural disasters. Although the graduation signifies major growth, there is still more economic stability that is needed before the country can significantly reduce its economic vulnerability.

– Zahlea Martin
Photo: Flickr

prosper africaAfrican markets claim six out of 10 of the fastest-growing economies in the world. Africa’s middle-class is likely to have an annual household consumption of $2 trillion before 2030, and by 2050, the U.N. predicts that Africa will be home to one-quarter of the world’s population. Prosper Africa is an initiative that strengthens U.S. investment in Africa.

US-Africa Ties

Nations such as Germany and China are competing for investments in Africa in preparation for its burgeoning role in the global economy. In the past 20 years, the United States has also attempted a number of initiatives to expand U.S.-Africa economic ties. Unfortunately, results have been modest because the focus has been on Africa as a foreign aid recipient rather than a strong future trading partner. However, Prosper Africa’s latest initiative, set to launch in 2021, offers hope for a more engaged economic partnership between the U.S. and Africa.

Prosper Africa

Prosper Africa was launched in December 2018 to “vastly accelerate” U.S.-Africa trade and investment through the coordination of 17 U.S. agencies and departments. This mutually beneficial endeavor not only opens market opportunities and grows Africa’s economic sustainability, but also protects the United States’ interests in the competition against other nations’ involvement in Africa.

Far from being a foreign aid program, Prosper Africa’s official website acts as a one-stop-shop for U.S. and African businesses and investors. It offers toolkits for African businesses and investors seeking to export or invest in the United States and vice versa for U.S. businesses and investors seeking to become involved in Africa. According to the website, Prosper Africa represents “a new way of doing business” through its portfolio of support services. To date, the initiative has serviced more than 280 deals valued at more than $22 billion. In keeping with its expanding ambitions, Prosper Africa’s budget request for the 2021 fiscal year rose from FY2020’s $50 million to $75 million.

Prosper Africa: 2021 Plans

On Nov. 17, 2020, USAID announced a new Prosper Africa trade and investment program for 2021. Valued at $500 million over five years, its goal is to expand Prosper Africa’s services. The four project objectives are increased trade, increased investment, improved business environment and providing support for USAID and Prosper Africa. A strong emphasis will be placed on private investment. By 2026, the program is expected to raise billions of dollars and create hundreds of thousands of jobs in both Africa and the United States.

It is still uncertain exactly what this program will look like. The program’s blueprints from Feb. 2020 describe its implementation approach fairly loosely. It aims to be flexible in shaping private sector demands concerning the facilitation and brokering of deals. Most of its transactions will take place directly through the firms and actors involved.

In addition to Prosper Africa’s website toolkits, local offices and trade hubs will provide further customizable services to align with the needs of different sectors. Some examples of services include investor matchmaking, transaction facilitation, targeted reforms and export support. Resource allocation will be determined by impact potential. Opportunities within the private sector will comprise the majority of activities and projects may be funded by grants or subcontracts. Throughout its services, Prosper Africa encourages African states to support economic transparency and rule of law.

Prosper Africa’s Chances of Success

Because Prosper Africa is effectively a harmonization of 17 U.S. agencies and departments, success largely comes down to effective cooperation. However, the initiative’s goals vary in difficulty. For example, Prosper Africa has already made impressive strides in streamlining its toolkits and providing specific U.S. services to aid transactions. However, more long-range goals, such as procedural reform and transparency, sector expansion, the rule of law and improving business environments may prove more challenging to achieve. However, from an economic standpoint, it is certainly encouraging to see Prosper Africa approach U.S.-Africa relations as an equal, viable trade partnership rather than merely an aid recipient.

Andria Pressel
Photo: Flickr

Benefits of Hosting RefugeesIn 2019, the U.N. Refugee Agency reported that there were about 26 million refugees globally. An estimated 68% of refugees come from just five countries: Syria, Venezuela, Afghanistan, South Sudan and Myanmar. Refugees exist in a state of flux, with their futures and fates in the hands of potential host countries. Refugees are one of the world’s most vulnerable groups yet the idea of hosting refugees comes with hesitancies due to misinformation and misconceptions. There are several benefits of hosting refugees.

Refugees Bring Productivity

There is a misconception that refugees come into a host country and subsist on benefits instead of working. Though not every country allows refugees to work, those that do allow this, see just how productive refugees are. Often unable to use their credentials in other countries, refugees are known for starting from the ground up and they are effective at it. Economic advisor, Phillipe Legrain, estimates that 1,000 refugee businesses could generate $100 million each year. If host countries loosen restrictions and allow refugees to expand their job opportunities, it could significantly improve the economies in host countries.

This would also mean making language learning classes and integration courses more accessible, but in the long run, the fiscal rewards outweigh the cost. Countries that allow refugees to work and open up businesses know that the influx of productivity is one of the major benefits of taking in refugees.

Refugees Enrich Culture

Some fear that accepting refugees means that the native culture will disappear. According to Anna Crosslin of the International Institute in St. Louis, cross-cultural understanding is vital for integration. Events like the annual Festival of Nations, which is run by the International Institute, not only help expose St. Louis residents to other global cultures but also help immigrants feel more at home. Even though there are differences between each culture, most cultures are incredibly similar at their core. Refugees are fleeing the same things ordinary citizens fear: families being torn apart, the right to vote being taken away, lack of education and more.

Refugees do not aim to disrupt the culture of their host countries but enrich it. They may bring with them different practices, foods and religions, but in the end, most people have similar ideals.

Refugees Stimulate the Economy

The more people participating in a country’s economy the better. Economic activity alone is one of the many benefits of taking in refugees. There is an initial investment required when allowing refugees into a country. Housing, language classes, healthcare, sustenance. All of these things cost a significant amount of money to provide, but once refugees are established in their host country, the initial investment pays off.

Refugees start businesses that employ locals, pay taxes and generate wealth. In countries with an aging workforce, young refugees entering the workforce complement their work and allow them to retire, while also contributing to social security or pension funds. Being able to work and make money, in general, allows refugees to stimulate the economy of their host country. Refugees allowed to work and enterprise are great for an economy, much more so than refugees that are not allowed in or not allowed to work.

Refugees Complement the Job Market

There is a misassumption that refugees take jobs away from their host country’s job market. Most studies conclude that refugees have very little effect on the job market at all. The U.S. State Department’s analysis of the labor market over a 30-year period showed that not only did refugees not negatively impact the job market, but they had no effect when compared to regions with no refugee population.

The work migrants do actually fill in the job market. In the United States, it is migrants doing much of the hard, physically demanding work like farming and cleaning meat and fish for consumption. These are jobs that not many native citizens want to do. The economic benefits of taking in refugees are also seen in areas with low domestic migration. In these places, migrants offer an economic boost that native citizens do not.

Refugees Bring Novel Skillsets and Knowledge

Many cultures make rugs, but who makes them like the Persians? Who can delicately remove the meat from a poisonous pufferfish like a Japanese sushi chef? Every country and culture has something that makes them stand out, something that they can teach and share with others.

Refugees offer language skills that natives might not. Many already have professional qualifications from their home countries. Most refugees exhibit a high degree of adaptability, a skill that is important in every industry. To top it off, organizations benefit greatly from diversity, experiencing greater profits, collaboration and retention than organizations that are not as diverse. Though refugees are not the only way an organization can become more diverse, the experiences, skills and perspectives gained are some of the greatest benefits of hosting refugees.

Welcoming Refugees

Resistance to accepting refugees is often due to misconceptions. Native citizens fear a disruption in their economy and culture. But in actuality, refugees stimulate the economy, enrich culture and supplement the job market. Better understanding the benefits of hosting refugees will hopefully mean that countries globally will be more accepting of this vulnerable group, realizing that benefits are provided on both sides.

– Maddey Bussmann
Photo: Flickr

European Union in the DRC
The Democratic Republic of Congo (DRC) is the largest Sub-Saharan country and has the fourth largest population in Africa. Throughout the years, the DRC has been faced with a combination of local, national, and regional tensions. Those tensions were the result of violent conflicts to mass migrations, militias, and profound poverty. These issues have ultimately limited the opportunities for achieving peace and stability in the country. One of the most consistent efforts to improve the country’s conditions comes from the work of the European Union in the DRC.

History of Financial Aid

The history of the European Union in the DRC starts with the first European Development Fund (EDF) of 1958-59. After a ten-year suspension, the cooperation dynamics have been increasing exponentially. For instance, in January of 2002, the National Indicative Program (NIP) was signed under the 8th EDF with a value of 120 million Euros, while the number increased to 205 million Euros the following year.

Between 2001 and 2003, the DRC received a total of 1,868 million Euros from the EU, making the country one of the bloc’s main aid recipients. Most of the money was destined for development efforts (72%), followed by humanitarian aid and cooperation in the areas of politics and security (23.5% and 4.5% respectively).

The EU institutions persistently rank within the three top donors, together with the United States and the United Kingdom, in humanitarian aid for the DRC. Moreover, ECHO Flight is the European Union in the DRC provision for humanitarian air service, especially directed to remote areas lacking a proper road infrastructure.

Ongoing Work

Currently, under the 11th EDF National Initiative Program, the work of the European Union in the DRC designates 620 million Euros for the period of 2014 to 2020 to fund the following sectors:

  1. Health: assisting the Congolese government in the development of a health system that is accessible, efficient, and of good quality

  2. Environment and sustainable agriculture: financing conservation efforts and development through electric accessibility and sustainable agriculture

  3. Governance and rule of law: strengthening policy reforms in spheres such as defense, justice, and security

  4. Transport: contributing to the completion of the key transportation axis, which is a national road of a 150km

The EU has also undertaken three civilian missions and two military ones. This makes the DRC the country with the most Common Security and Defense Policy (CSDP) missions. The contributions of one of the military missions, EUFOR RD Congo (requested by the UN in 2006), were crucial for preventing the spread of violence on the eve of celebrating their first democratic elections in more than 40 years while ensuring a peaceful process. Civilian missions tend to focus on strengthening the DRC’s security forces and justice sector. These missions helped result in the creation of the Police Reform Monitoring Committee. They also assisted with the draft of the Congolese National Police’s framework of activities.

New Efforts

More recently, the EU agreed to contribute to policy reform initiatives with 60 million Euros. The aim of this funding is to increase civilians’ trust in the security forces and warranting the rule of law. Its four objectives are:

  • Enhancing the implementation of reforms and police accountability measures

  • Improving the professional level of the police and the criminal justice system

  • Improving human resource management

  • Activating and maintaining community security to restore public confidence

According to Jutta Urpilainen, the European Commissioner for International Partnerships, “There can be no development and sustainable growth without a more peaceful environment. That is why the European Union is stepping up its support for security, peace, and stability in the DRC”.

Finally, the European Union is providing 19.5 million Euros of humanitarian aid to help the DRC in its fight against COVID-19. The DRC is the most impacted country in the region after Cameroon. The money will help improve access to healthcare and awareness-raising efforts. This will occur while the ECHO flights continue with their regular assistance, especially to those most vulnerable.

Helen Souki

Photo: Flickr

Causes of Poverty in TanzaniaTanzania is one of the poorest countries in the world, however, according to the World Bank, poverty from 2007 to 2018 was reduced by 8% overall. There are multiple reasons why the largest east African country is in such despair such as food scarcity, poor access to education and proper healthcare. This article will discuss five facts about the causes of poverty in Tanzania.

Causes of Poverty in Tanzania

  1. The population rate is continuously increasing faster than the poverty reduction rate in Tanzania. This is causing millions of people to live in poverty and survive off of $1.90 a day or less. According to the World Bank’s Poverty and Equity Brief, from 2011 to 2018, there was only a 1.8% decline in poverty. To combat this issue, according to the brief there should be more opportunities available for those living in rural areas. This is because rural areas are where the poverty rate is the highest.

  2. A lack of a proper education lowers the chances for sustainable employment. A primary issue related to education in Tanzania is the decline in enrollment of children in primary school. According to a report for out of school children in Tanzania by the United Nations Children Fund (UNICEF), out of the 1.3 million children aged 7 years old in Tanzania, 39.5% do not attend primary nor secondary school. However, as children get older, the more likely they are to attend school.

  3. Severe and life-threatening diseases such as HIV/AIDS, tuberculosis and malaria impact millions of the Tanzanian population. Many families have to pay out of pocket to receive continuous treatment. Recurring payments pressure already low-income households, adding to one of the causes of poverty in Tanzania. To mitigate the diseases affecting millions living predominately in rural areas, the United States Agency for International Development (USAID) has provided treatment to decrease the severe heath conditions’ growth and spread.

  4. Out of a population of 57.3 million people in Tanzania, access to clean water isn’t available for four million of them. Additionally, 30 million people don’t have access to proper hygiene. This causes women and young females primarily to carry massive amounts of water for a great distance in order to provide it for their families.

  5. The labor force is continuously declining in Tanzania. This can be partially attributed to a lack of government support in initiating sufficient employment opportunities, especially in rural areas. Due to poverty being the highest in rural areas because of poor living environment circumstances, many tend to move into urban areas. Unfortunately, unemployment persists due to people lacking skills for the jobs in their new urban environment. Access to proper education and an increase in attendance in primary and secondary schools will help expand opportunities and skills for more promising and long-lasting employment.

Progress Eradicating Poverty

The key to eradicating poverty in Tanzania is education. However, for more children to become educated, there needs to be an increase in access to education and school attendance. As of 2020, Tanzania’s literacy rate is 70.6%. However, the literacy rate has fluctuated over the last decade, not ensuring continuous growth.

Nevertheless, one organization, “Room to Read” has taken the necessary steps to ensure 14.3 million children are literate. The organization helps young children to be educated, literate and aware of personal health and proper forms of family planning. Their work primarily targets young girls. Room to Read distributes its resources not only to Tanzania but also to over 12 other countries around the world. Suppose Tanzania’s government recognizes the importance of education, a better healthcare system, and an increase in employment opportunities. In that case, the causes of poverty in Tanzania will end sooner than expected. This in turn could help set an example for other impoverished countries.

Montana Moore
Photo: Flickr