Information and stories about economic growth.

mega ports in Morocco
Morocco’s geographic location gives it an advantage when it comes to developing the country’s economy. Morocco borders the Mediterranean Sea to the north and the Atlantic Ocean to the west, making it the closest African country to Europe. Mega ports in Morocco are among the many infrastructure developments that are revolutionizing the country as Morocco proceeds to build and expand its transportation infrastructure to connect the two continents.

Tanger Med

The Tanger Med port adopted its name from the port’s home city of Tangier in northwestern Morocco. Because of its important geographic location, Tangier has played a significant role in trade between Africa and Europe since ancient times.

The first site, known as Tanger Med 1, has two terminals. The first terminal started in 2007 after the King of Morocco, King Mohammed VI, laid the first stone in 2002. Following that, the second terminal started just one year later. Tanger Med 1 has a capacity of 3.5 million 20-foot equivalent units (TEUs). The terminals created 6,000 jobs at the port and an additional 70,000 jobs in the trade zone area.

After the establishment of Tanger Med 1, the King gave the order for a second container port, Tanger Med 2, with an investment of $1.5 billion. The port contained two more terminals, beginning construction officially in 2015. In the summer of 2019, Tanger Med 2 formally opened. Tanger Med became the largest port in the Mediterranean region, exceeding Valencia and Algeciras’ container ports with six million TEUs. Because of the outstanding performance of Tanger Med, the first of the mega ports in Morocco and the biggest in Africa, the government decided to build similar mega ports in other cities.

Nador West Med

Nador West Med is the second of the mega ports in Morocco. With almost half of its construction complete, the port will be fully ready by the end of 2022. The project will cost $13.8 million, consisting of new infrastructure and an industrial port.

The first phase of the Nador West port will include a 1,520-meter container dock for larger ships. It will also include a 600-meter dock for general goods to serve larger merchant ships. Furthermore, the Nador West Med port will have oil and chemical tankers, each able to carry approximately 170,000 tons.

New road construction will expand the route from six meters to nine meters and fortify the pavement. Nador West Med will have a tremendous socio-economic impact on the region. Once the port opens, it will reduce the unemployment rate with more jobs, allow for easy entry to the region and provide tax benefits for the country.

Dakhla Atlantic Port

Another port, the Dakhla Atlantic Port, will be built in Dakhla, located in a long, narrow peninsula in the southwest of Morocco. In 2020, the King announced significant investments that will cover the southern region of Morocco, including a mega port in Dakhla. This port will enhance many sectors such as fisheries, mining, energy, tourism and agriculture, processing approximately 2.2 million tons of goods yearly. With a cost of roughly $1.1 billion, the port will elevate direct commerce between Africa, Europe and the Americas following its completion in 2026. It will also include a space of 1,650 hectares for industrial and logistical services.

Certainly, mega ports in Morocco are boosting the country’s economy with a powerful presence in the region. Due to its strategic geographic location, Morocco’s ports allow the establishment of more investments and create a significant number of jobs. Moving forward, these mega ports should continue to bring many benefits for the country and the region.

– Zineb Williams
Photo: Unsplash

Law in Timor-LesteAll states face economic, social and political pressure, but when the pressure exceeds a state’s ability to control it, the state becomes fragile. The Fund for Peace uses the Fragile States Index (FSI) to assess the vulnerability of 179 countries every year. The Southeast Asian nation of Timor-Leste has shown significant decreases in economic and environmental fragility in recent years. In 2020, for the first time, the Organization for Economic Cooperation and Development’s (OECD) report on the state of fragility did not list Timor-Leste as a fragile state. In the FSI’s 2021 report, Timor-Leste ranked first of all the world’s countries for yearly reduction in overall fragility score. Improvements to fragility and rule of law in Timor-Leste have also helped the nation reduce poverty.

History of Timor-Leste

Timor-Leste, formally known as East Timor, is one of the world’s youngest nations. It was a Portuguese colony until 1975, then remained under Indonesian sovereignty until 1999. In 1999, the U.N. organized the East Timorese Independence Referendum, in which citizens chose independence over greater autonomy within Indonesia.

Timor-Leste became the first new sovereign state of the 21st century after the formal ratification of independence in 2002. Timor-Leste has devoted the last 20 years to rebuilding infrastructure and formal institutions damaged by past conflict. Around 1.3 million people call the newly peaceful, democratic nation home.

Economic Growth in Timor-Leste

Timor-Leste’s poverty rate dropped from 50% in 2007 to 42% in 2014, indicating economic growth. Less poverty means less violence, so the drop in poverty means improvement in fragility and rule of law in Timor-Leste. The Timorese government has put great effort toward reducing disparities within the economy, especially through education.

After decades of conflict, the Timorese needed to rebuild nearly all institutions from the ground up. Between 2005 and 2008, the government devoted significant funding to primary education, leading primary education enrollment to increase from 68% to 85%. However, older youth and adults still lacked the education to participate fully in society and the economy.

In 2010, with only 36% of the population functionally literate, the World Bank launched the Second Chance Education Project. The program set up nine community learning centers with flexible hours, providing a second chance to those too old for primary school. By the time the project ended in 2017, 1,670 students had participated in the mature education course, 55% of whom were women. Timor-Leste’s recent efforts put the country on target to achieve U.N. Sustainable Development Goal 4 (quality education) by 2030.

Social Improvements

Improvements in health and nutrition directly improved fragility and rule of law in Timor-Leste. Malnutrition is the country’s leading cause of premature death and disability. Timorese children suffer the third highest stunting prevalence in the world, with more than 50% of children younger than 5 identified as stunted. Experts believe that loss of productivity due to malnutrition costs Timor-Leste $40 million per year.

To combat malnutrition, the World Bank implemented the Community Driven Nutrition Improvement Program. Operating in 49 villages, the four-year program taught families how to grow and cook nutrient-rich foods. The program gave more than 1,000 families sweet potato cuttings and provided more than 400 families with seeds for their home and community gardens.

With the help of the Global Fund to Fight AIDS, Tuberculosis and Malaria (GFATM), Timor-Leste has also brought its malaria epidemic under control. The GFATM funded and helped launch the National Malaria Control Program in 2003. Following the launch, Timor-Leste saw a 97% decrease in reported cases, which dropped from around 223,000 cases in 2006 to only around 6,200 in 2012. The program followed a six-part strategy:

  1. Enhance early detection and effective therapies.
  2. Distribute long-lasting insecticidal nets.
  3. Conduct indoor residual spraying.
  4. Improve epidemic prevention, preparedness and response.
  5. Educate the public.
  6. Enhance monitoring and research.

Political Improvements

Timor-Leste’s democracy continues to flourish. Since gaining independence in 2002, the state has successfully held four peaceful, free and fair multi-party elections, all of which ended with a smooth transfer of power. Democratic stability will continue to improve fragility and rule of law in Timor-Leste. As one of Southeast Asia’s most stable democracies, the 2020 Sustainable Development Goals (SDG) Report classified Timor-Leste as on target for SDG 16 (peace, justice and strong institutions).

The Timorese government now prioritizes rebuilding infrastructure and public services. The Timor-Leste Road Climate Resilience Project is currently restoring 110 kilometers of road connecting three of the main districts in the country. Inability to travel throughout the country isolates communities and isolation hurts the economy. The project will connect 410,000 citizens, encouraging greater economic activity. The road will also help decrease malnutrition by giving families access to diverse foods grown in other parts of the country. The road restoration project is nearly 80% complete.

Goals for Timor-Leste Through 2024

In November 2019, the World Bank Group established the Country Partnership Framework for Timor-Leste. It plans to transform Timor-Leste’s “natural wealth into improved human capital and sustainable infrastructure” with three main objectives:

  1. Promote private sector-led growth and diversify the economy.
  2. Improve human capital.
  3. Continue to rebuild infrastructure, especially transportation.

Along with Timor-Leste, the OECD also removed Egypt, Malawi, Nepal and Rwanda from the list of fragile nations in 2020. As fragility and rule of law in Timor-Leste and other nations improve, their neighboring nations will also find more stability. There is always room for improvement but the world should take a moment to celebrate the significant progress in the small, young country of Timor-Leste.

– Ella LeRoy
Photo: Flickr

mint countries Mexico, Indonesia, Nigeria and Turkey, also known as the “MINT” countries, are the fastest-growing emerging economies in the world. While COVID-19 has socially, physically and economically impacted the MINT countries, the nations are still playing a tremendous role in helping alleviate poverty for millions of people.

Mexico

Mexico is the perfect example of an emerging economy. Due to its strong trade relationship with the United States, its GDP is higher than almost all developing countries. However, Mexico’s overall GDP is not yet enough to meet the standards for a developed country. Similarly, while the poverty rate remains high in Mexico, the percent of people living on less than $3.20 has dropped from 12.8% in 2010 to 6.6% in 2018.

However, during the COVID-19 pandemic, Mexico’s economy has declined sharply. In fact, the Mexican GDP decreased by 8.3% during 2020, its largest drop since the Great Depression. While the country has partially recovered from its economic downturn due to increased trade, it still has a long way to make up for its GDP drop from 2020.

Indonesia

Indonesia is the fourth-most populous nation in the entire world and ranks 56th in economic freedom. This statistic is a result of low tax burdens and increasing political participation. Similarly, the country is one of the top-ranked Asia-Pacific countries in terms of its economy and the country has seen steady financial improvements since 2017. In fact, Indonesia cut its poverty rate by more than 50% from 1999 to 2020.

While COVID-19 had major effects on the country, economic activity has rebounded significantly. For example, in July 2020, the government eased lockdown restrictions, which allowed for increased exports and stronger government support. Without the burdens of the COVID-19 recession, Indonesia can continue to develop its economy and reduce poverty.

Nigeria

Nigeria has the largest economy in Africa. However, the country saw relatively minimal growth during the last few years because of high oil prices. The drops in oil prices are significant because Nigeria is Africa’s biggest exporter and contains Africa’s largest natural gas reserves. Similarly, the COVID-19 pandemic has had disastrous effects on the country. The economy contracted by 6.1% in the second quarter of 2020 with 27% of Nigerians unemployed.

However, the country has made recent strides to tackle poverty and improve its economy. Due to eased lockdowns in the country, Nigeria’s oil prices have improved. Furthermore, its economy has grown by 0.5% in the first quarter of 2021, helping the country exit its COVID-19 related recession. In fact, the president of Nigeria inaugurated the National Steering Committee of the National Poverty Reduction with Growth Strategy (NPRGS) in June 2021. The inauguration marks Nigeria’s commitment to raising 100 million people out of poverty within 10 years, fueling optimism about the country’s future.

Turkey

Turkey, one of the wealthiest MINT countries, has had an impressive economic run since the 2000s due to open trade with other countries and cooperation with the EU. Similarly, the Turkish government has implemented government reforms in most impoverished regions of the country. These reforms successfully cut poverty rates in half.

Even with the COVID-19 pandemic, Turkey has been able to recover, and its economy remains strong. While the leaders of Turkey have been accused of political corruption and Turkey saw a COVID-19 spike in April 2021, the number of infections has dropped by 72% since then because of a total lockdown measure. Similarly, Turkey’s recovery from COVID-19 is expected to boost the country’s GDP by 5% by the end of 2021.

Even with the factors of COVID-19, political instability, corruption and more, the MINT countries have shown resilience and progress. By decreasing poverty, implementing reforms and recovering from the pandemic, the MINT countries move toward a bright future.

– Calvin Franke
Photo: Flickr

Economic Development in NicaraguaEconomic development in Nicaragua has encountered issues that have slowed the country’s development. Nicaragua declared itself an independent country in 1821. However, it has directly felt the crippling effect of economic issues from the onslaught of crimes. As recently as 2020, Nicaragua was recognized as a critical threat location for crime by the Overseas Security Advisory Council. Nicaragua has also encountered natural disasters. As of November 2020, Hurricane Eta and Hurricane Iota, Category 4 and 5 hurricanes respectively, caused more than $740 million in damage.

However, even with mounting external and internal pressure, economic development in Nicaragua has shown potential for improvement. This change is based on securing educational opportunities that turn into growth in economic projects. Private organizations have created community centers and offered low- and middle-income citizens better access to education. Such organizations have also created jobs by amplifying the reach of renewable energy, agricultural irrigation expansion and fortification of infrastructure.

Nicaraguan Poverty

Nicaragua has faced an uphill battle in economic growth due to its criminal and poverty-stricken background. The conflict between rival gangs within the country exacerbates this issue. This instability has also caused a decline in economic fortitude. Moreover, inflation has reached undeniably high levels, and people have left Nicaragua in droves to pursue better economic opportunities. The people left behind continue to suffer from a lack of proper healthcare and education.

Education Improves Economic Development

The educational system within Nicaragua is adjacent to the poverty level. Children within the educational system find themselves facing the challenge of completing school due to a wide range of reasons. A recent study from the USAID reported that an estimated 72% of Nicaraguans do not finish secondary school, leaving them likely to be impoverished. In addition, more than 18% of teachers do not have more than primary school education. This creates a new generation of unprepared Nicaraguan citizens.

The correlation between educational attainment and job development is significant. It is the bridge that keeps many Nicaraguans in impoverished income brackets. With the constant issues that many lower-income Nicaraguan students face, there has been an increase in steering them toward an attainable educational path and improving educational success.

Formative Ways of Change

Outside help from the U.N. and the U.S. has created a shift in economic and educational development in Nicaragua in recent years. Organizations such as Save the Children and the World Bank have supported the upturn of educational prowess within Nicaragua. Save the Children has created an infrastructure for educational access by establishing toll roads and paving new ones. Additionally, the World Bank has established more community centers with creative and technical workshops to teach and fortify skills. The skills taught include knowledge of irrigation, infrastructure fortification and a new era of clean and renewable energy.

The organizations have also increased job development and commercial development projects from the private sector. These development projects have provided more job opportunities within the industries of agricultural irrigation, the fortification of infrastructure, renewable energy and the reinforcement of trade.

Projects of this magnitude were given more than just a prime objective with the World Bank portfolio. Such projects totaled more than $400 million for nine planned projects. These projects include the enhancement of telecommunications, roads, education, health and insurance for natural disasters. Two credits have already been passed together, worth more than $100 million, to combat COVID-19 and help those most affected by hurricanes.

The Nicaraguan educational system has had a rise in scholars coming through the ranks to create an ever-growing class of job-ready individuals. Problems of organized crime and violence have troubled Nicaragua in the past, but there is hope to establish a better economic system that can create many more jobs and lead Nicaragua to a better future. Organizations like the World Bank and Save the Children are instituting an educational and job pathway for young and experienced Nicaraguan citizens alike to create a more prosperous Nicaragua.

Mario Perales
Photo: Unsplash

Globalism Reduces PovertySeveral factions surround globalism, some cite statistical reduction in poverty, while others decry effects on local communities. As in all reductive thinking, oversimplification misstates the complexity, succumbing to the facility of a universal perspective. What is absolutely clear, however, is the initial decades of global trade created categorical winners and losers — the most impoverished 5% gained $.07 in daily income, while the top 1% averaged $70. The theory that globalism reduces poverty is multifaceted, and such, globalism is best described as a “two-way street.”

Global Inequality

As the global pool of wealth undeniably grows, financial resources are increasingly concentrated among a powerful economic cadre, actually increasing global inequality. Subsequently, inter-national economies are seeing more parity, but intra-national wealth distribution is increasingly unequal.

Absent the economic investment from global trade, however, developing nations struggle to modernize. Lacking foreign capital investment to create sustainable industries, an estimated 95% of Indian youth are forced into informal child labor. In the nation-state equivalent of “Sophie’s Choice,” governments are forced to participate while the premise that globalism reduces poverty remains dubious.

Relative and Absolute Poverty

Early returns from globalism showed a reduction in extreme poverty from 36% to 19% between 1990-2008 and capitalists trumpeted imminent eradication of poverty by the benevolent “invisible hand” of market forces. Undoubtedly a monumental achievement, millions have benefited from access to foreign markets.

As always, the devil is in the details. Poverty is an indiscriminate measure, a theoretical categorization defines the powers that be. For the World Bank, poverty is a function of daily income. But, between 1990-2018, the threshold indicating extreme poverty has preposterously risen a mere $0.90 while global GDP grew by $60 trillion during the same period. Given such disproportionality, it is difficult to see how globalism reduces poverty.

Global Poverty or Global Inequality

Ambiguous poverty metrics belie a true consequence of globalism, that the top percentile claimed more than 60% of growth. To retain these substantial gains, it is the providence of influential international corporations and institutions to promote globalism. Exceedingly fungible, poverty metrics become a prism through which various interests and policymakers justify exploitative agendas, often accompanied by stifling conditionalities.

As the International Monetary Fund and European Union counsel draconian measures to fledgling economies, local “governments often find it politically easier to cut the public expenditures for the voiceless” impoverished as connected wealthy classes are “disinclined to share in the necessary fiscal austerity.”

Equally as true in developing nations, entrenched hegemonies have little incentive to shoulder the burden of globalism and frequently siphon economic growth for personal enrichment. Irresponsible stewardship of finances and resources, as always, disproportionately affects voiceless and impoverished communities.

Generations after the ouster of foreign monopoly United Fruit Company from Latin America, indigenous farmers’ share of profit is essentially stagnant as corrupt domestic entities pocket revenue. Globalism reduces poverty only when sufficient protection is guaranteed to populations most at risk of exploitation and achieved only when international, federal, corporate and municipal institutions communicate with disenfranchised communities.

Paternalism in South Africa

Under the best of circumstances, sudden inundation of investment and foreign influence is devastating. For countries without robust legislative institutions, it is cataclysmic. The hyper-racialized-apartheid bureaucracy of South Africa was particularly ill-prepared for the rapid modernization required by globalism.

Despite democratic revolution, political bodies could not address the dual responsibilities of erasing paternalistic and racist policies while simultaneously reentering international trade. After centuries of protectionism and isolation, South African society was a manicured house of cards temperamentally opposed to foreign influence.

The draconian society, which enslaved the Black majority, created a delicate homeostasis and the post-apartheid government was manifestly incapable of protecting the citizenry as globalism began in earnest. A systematically underprivileged class was ripe for exploitation.

Skills-Based Bias

During apartheid, underpaid, low-skill labor provided the engine for economic growth in South Africa. Known as “lumpenproletariat,” these peri-urban shantytown workers relied on the largesse of landed aristocracy for survival.

As a matter of course, economic opportunities through education represented an existential threat to White hegemonies. Because “it is surely the lack of opportunities of the less advantaged that is the real concern” in reducing poverty, undereducated South Africans were dispositionally unable to profit from economic growth.

Compounded by exclusion from land ownership, Black South Africans possessed neither the capital nor the skills for socio-economic gain. Various policy initiatives for Black Economic Empowerment (BEE) have targeted inequality, but generations of subjugation cannot be erased during the short lifespan of South African democracy.

Case Study: South African Winemakers

Overregulation and heavy subsidies throughout the 20th century created an extremely inefficient South African wine industry. Traditional focus on bulk production for domestic markets encouraged widespread plantation of high-yield, low-quality cultivars that were antithetical to international demand for higher quality. With a contorted supply chain entirely unfit for global competition, South African winemakers responded by replanting 50% of vineyards between 1990 and 2005.

To finance these changes, producers required foreign investment. At the behest of multinational distributors, conglomeration through a spate of mergers destabilized traditional market structures — the consolidation of Distillers and Stellenbosch Farmers Winery eliminated 2,000 jobs alone.

Moreover, a weak currency forced producers to rely on foreign capital for infrastructure improvements to replace apartheid-era slave labor. As South African winemakers became increasingly dependent on external financing, mechanization reduced permanent employment by 60%.

The Unequal Distribution of Benefits

Nonetheless, foreign investment allowed the wine industry to grow. Exports increased tenfold during the 90s, and by 2002, South Africa was the fastest-growing sector in the all-important British market. Representing 45% of domestic exports, the fortunes of South African winemakers were existentially linked to unpredictable foreign markets.

But, native producers have seen little benefit. As of 2018, the average return on investment for those costly infrastructure upgrades is an abysmal 2%. And after three decades of democratic rule and countless land reforms, Black ownership in the wine industry is 3%. However, a goal of 20% by 2025 was established in 2007.

A Two-Way Street

In the hyper-competitive wine trade, “survival is not made any easier by the fact that globalization is a two-way street.” The South African wine industry is just one example of countless local communities at the mercy of free markets.

Nonetheless, increased trade and economic growth from globalism affect poverty. The 21st century will be judged by how well the fruits of international wealth are distributed to the most vulnerable populations. As early growing pains subside, poverty eradication is within grasp if the world so chooses.

Kit Krajeski
Photo: Flickr

China's Economic Status
China is part of Southeast Asia and the third-largest country in the world. In 2020, China’s economic status declined due to the COVID-19 pandemic as businesses shut down and a halt on exports resulted in a loss of $2.1 trillion. However, as of 2021, the country is gradually recovering from the impact of COVID-19.

Why China is Growing so Fast

The Central Economic Work Conference (CEWC) had initially estimated a 6% growth for China in 2021. However, in 2021 so far, China has jumped to an astonishing 9% GDP growth. This increase is due to COVID-19 vaccine distribution throughout the country, which has encouraged China’s president and government to reopen businesses. China’s leaders are also working to provide more goods and services, control carbon emissions and advertise the positives of reform. Retail sales have increased 34% due to the country lifting its restrictions.

Climate and Pollution Control

China took inspiration from California on how to reduce carbon emissions. California had a six-year plan to reduce carbon in the atmosphere. Ever since the U.S. withdrew from the Paris climate accord, China has taken the lead in guiding itself and the rest of the world in reducing climate change. In 2018, China’s Five Year Plan brought attention to the carbon market. Essentially, reducing carbon also reduces pollution and health conditions.

In China alone, pollution kills 1.6 million a year. Yet as of February 1, 2021, China’s carbon market policy officially emerged in an effort to reduce carbon in the country. Moving away from industrialization and providing a more significant focus on energy consumption could potentially provide future generations with a higher expectancy. Although it will take time to reduce carbon dioxide emissions due to China’s many coal-dependent companies, the country is already setting plans in motion to replace coal with solar power and windmills. The country hopes to achieve these goals by 2030.

Technology

Competition between the U.S. and China involving developing technologies has existed for decades. In highlighting potential on educational and technological advances, China has a chance of becoming one of the world’s most advanced countries. China has chosen to focus on basic research to lead to a higher percentage of research and development. Between 2021 and 2025, China hopes to create laboratories that focus on various categories such as biomedicine and energy efficiency.

Looking Ahead

By implementing these plans, China is on the road to recovery from the COVID-19 pandemic as vaccines make way for much-needed economic improvement. Moreover, funding for education, technology and businesses will keep China out of dept as it continues to rise as a world power. As trade opens back up, China will guide other countries in keeping their economies relatively successful, hopefully leading to a reduction in health issues and global poverty.

– Selena Soto
Photo: Flickr

Social Ecology in RojavaRojava, also known as the Autonomous Administration of North and East Syria, is a region in Northeastern Syria. It was born out of the political instability that started at the beginning of the civil war in 2011. Surrounded by conflict, Rojava represents a rare success story of a war-torn region determined to help its local communities by reducing poverty through social ecology.

Rojava in Action

Rojava functions as a confederated system of local communities. Political decisions are implemented by democratic means and policy is decided from the ground up. Members of the immediate community have the first and final say on policies and practices that affect their communities directly. This political method of local autonomy relies on a specific degree of local sustainability and social responsibility. Communities take an active role in ensuring each member can access essential resources such as food and clean water.

Ecological sustainability is strong at play. Communities in Rojava aim to transform the landscape back into a more ecologically diverse and fertile area. This will mean reversing land practices inherited from the Assad regime. Groups such as the Internationalist Commune of Rojava, and its project, Make Rojava Green Again, focus efforts on this transformation. This is the crux of how Rojava hopes to reduce poverty through social ecology.

The Problem

Under the Assad regime, Northern Syria became deforested and transformed into monoculture croplands. One example of the practice is the deforestation of Afrin in favor of planting olive trees. This practice, along with the use of chemical fertilizers and unnatural water sources, destroyed the quality of topsoil and degraded the overall fertility of the land. Such practices also forced the population to rely on supermarket-based systems of distribution to purchase food and other essentials, decreasing local access to resources in favor of international markets. This form of politically-induced scarcity increased poverty rates in the Kurdish regions of Northeastern Syria.

Making a Change

After the withdrawal of the Syrian Government in 2011, lands once used for monoculture cultivation were expropriated by local farming cooperatives. These cooperatives form the basis of the economic system that now functions in Rojava. Each cooperative includes roughly 25 to 35 people. The priority of each cooperative is to provide for the basic needs of the region’s most impoverished citizens. The reallocation of resources and land back to local communities has seen success.

The localization of food production has notable environmental and social benefits. According to a study conducted in 2019, eggs supplied by local cooperatives required less than 2% of the monetary cost and energy needed for eggs supplied by modern supermarket supply chains. This means the people in Rojava have improved access to food, and, at a substantially reduced cost.

The Make Rojava Green Again project has spearheaded multiple ecological initiatives throughout Northeastern Syria aimed at reducing poverty by encouraging practices of ecological sustainability at the local level. Examples of such initiatives include efforts to rebuff rivers with the reforestation of native plant species. This will create wider access to clean water for communities that rely on such rivers. Other examples include reusing water for irrigation and planting urban gardens in order to grow food for impoverished members of the community who cannot grow their own. This will increase food security for otherwise vulnerable areas.

Continuing Forward

Despite the threat of military annihilation, Rojava continues to implement a green future for its citizens. Ecological initiatives have increased access to natural resources for populations in both urban and rural environments. The effort to reduce poverty through social ecology in Rojava is an ongoing initiative that requires international support if it is to survive. Nevertheless, Rojava has already demonstrated the effectiveness of such measures, and in doing so, has provided the rest of the world with a model for a green future.

Jack Thayer
Photo: Flickr

Renewable Energy in IndiaThe development of sustainable energy has many benefits for citizens in India. In addition to economic growth, it also creates new job opportunities which can lower poverty rates. In 2017, 10.3 million renewable energy jobs were available globally. Renewable energy in India has the potential to significantly boost the country’s economic standing and lift many out of poverty.

Renewable Energy in India

With the implementation of 160 gigawatts (GW) of solar and wind energy, India projects to create more than 330,000 new jobs by 2022. In 2017, the solar and wind energy sectors of renewable energy have already employed 151,000 people. People living in poverty in rural areas will benefit from job creation and increased energy will provide children with more time to work on their education after dark, increased productivity for families and increased health benefits.

Types of Renewable Energy in India

  • Solar Energy: The Jawaharlal Nehru National Solar Mission (NSM) was created by the Government of India’s Ministry of New and Renewable Energy to develop 100 gigawatts of solar power from grid-connected and off-grid solar energy by 2022. NSM’s implementation of photovoltaic (PV) cells has created more jobs per unit of energy than any other energy source, making it an important factor in lowering unemployment rates in India. Solar energy is most commonly sourced from PV cells that can be installed on rooftops of houses or commercial buildings and absorb sunlight throughout the day.
  • Wind Energy: One of the largest sectors of renewable energy in India is wind energy. India is the fifth-largest wind energy producer and has the potential to grow even larger with a target of 60 gigawatts by 2022. Further expansion in the wind energy industry can be a major source of jobs for both unskilled and skilled workers in India. Wind energy is created in India through the development of wind farms, created through the installation of wind energy generators in rural areas that have ample amount of land. The installation of wind farms in rural areas creates job opportunities for rural citizens living in poverty.
  • Biomass Energy: Biomass has the potential to become a large source of renewable energy in India. Biomass is sourced from municipal waste, solid material and liquid material. India is rich in biomass resources. One of the most successful sources of biomass comes from sugar cane in agriculture and manure from livestock. Farms stand to benefit largely from the implementation of biomass energy development, in turn, benefiting rural people living in poverty.

Continued Development

Though large strides have been made in renewable energy in India, further development could bring significant benefits. India plans to quintuple current wind and solar energy capacity and could potentially become the world’s third-largest economy by 2030.

Renewable energy has improved the lives of many citizens living in India, however, more than 600 million people still use firewood for cooking and many have unreliable energy sources. Expanding renewable energy across India will further improve the quality of lives of citizens and bring many out of poverty through the creation of jobs in renewable energy sectors and increased opportunities for education and training in the sector.

Simone Riggins
Photo: Flickr

Economic Expansion and Poverty Reduction Over the past half-century, Asia has become the world’s standard-bearer for both economic expansion and poverty reduction. Asia has made tremendous growth that accompanies poverty reduction.

Asia’s Economic Profile

In 2020, the Gross Domestic Product (GDP) of Asia was greater than the GDP of the rest of the world combined. Experts estimate that by 2030, the Asia-Pacific region will account for 60% of the world’s economic growth.

Tremendous economic growth is not a new phenomenon in Asia. In fact, since 1960, Asia’s economy has grown at a higher rate than any other continent. East Asia’s economy, specifically, has exceeded the rest of the world over the same time frame. Japan kickstarted Asia’s period of growth after World War II. Soon after, the “four dragons” —  Taiwan, Singapore, Korea and Hong Kong, emerged. The dragons each experienced tremendous and sustained economic growth in the latter half of the 20th century. In 1978, China opened its economy to the world, marking a huge leap forward for Asia’s economy.

With economic growth comes an increase in prosperity as the Asia-Pacific region is home to 90% of the world’s new members of the middle-class. While Asia’s economic prospects are tremendously promising, economic growth does not always translate into advancements in quality of life. Poverty reduction is an essential component of improving living standards and poverty reduction in Asia has been an important focus for Asian governments.

Poverty Reduction in Asia

Since the beginning of Asia’s period of tremendous economic growth, the region has seen similarly tremendous progress in poverty reduction. Asia continues to lead the world in poverty reduction.

No single country is more responsible for this achievement than China. In the last 30 years, more than 700 million people in China have made it out of extreme poverty. On a shorter time scale, China’s efforts to reduce poverty have yielded similarly promising results. From 2015 to 2019, China reduced poverty from 5.7% to 0.6% of the total population. In February 2021, China officially celebrated the end of absolute poverty, defined as the level at which a person cannot afford to meet their basic needs like food, water, healthcare, education and more.

Room for Improvement

Economic growth is not solely responsible for the successes of poverty reduction in Asia. In fact, as economic growth has progressed, Asia has actually experienced diminishing marginal returns in poverty reduction. In other words, as Asian economies have continued to grow, the growth has had a reduced effect on poverty reduction rates. Economic expansion and poverty reduction do not always happen equally. Policy is still needed to ensure poverty does not become a hidden issue. Despite all the expansion of the past 50 years, poverty in Asia is still a significant problem.

Asia’s progress in reducing poverty has been substantial but continued efforts are needed to truly eradicate poverty with further progress. There are still more than 320 million people in Asia who live in extreme poverty, defined as less than $1.90 a day. Furthermore, the COVID-19 pandemic has negatively affected poverty reduction in Asia. A World Bank report in September 2020 estimated that for the first time in 20 years, poverty could rise in East Asia. It estimated that as many as 38 million East Asian people could fall below the $5.50 poverty line. As such, continued focus on poverty reduction efforts is crucial, now more than ever.

Leo Ratté
Photo: Flickr

economic growth in East AfricaIt is no surprise that the COVID-19 pandemic has dampened growth momentum worldwide. Nonetheless, it is expected for Africa to recover and experience continued economic growth. The launch of the 2021 African Continental Trade Area already shaped a very promising economic future for Africa that can amount to a $450 billion income gain by 2035. Contributions to this growth can be credited to the robust economic dynamics of East Africa. In terms of economic growth, Africa is expected to maintain a stable positive percentage. In 2019, East Africa remained the continent’s fastest-growing region with an average growth of 5%. Projected GDP growth in East Africa before COVID-19 was forecasted above 5%. The economic growth in East Africa is positively contributing to development in Africa overall.

East African Economies

Economic growth can be evidently demonstrated by looking at annual GDP in the last decade. Some of the main economic players of the region show steep upward directions. Notably, of the world’s top 10 fastest-growing economies in 2020, three are East African countries including Rwanda, Ethiopia and Tanzania. In the year 2019, Ethiopia and Rwanda placed second and third respectively. Ethiopia averaged a 10.3% growth as Africa’s fastest-growing economy from 2007 to 2017. For the same period, Rwanda followed closely with an average of 7.5%.

Increased Foreign Investments

In 2019, East African Foreign Direct Investment (FDI) inflow increased from $5.7 billion to $11.5 billion in just a year. Inflows to all East African countries except Tanzania increased during this time period. This 103% increase is largely due to China as East Africa’s largest investor. Chinese investment accounts for almost 60% of FDI inflow in East Africa. Investment is going into the technology, manufacturing and services sectors. FDI inflows created 89,877 jobs in 2018 and 211,084 in 2019. Employment increased in Uganda, Tanzania, Rwanda, Kenya, Burundi and South Sudan.

Economic Development Initiatives

Investment within the region has also increased from $152.7 million to $724.6 million. The number of projects supported by these investments increased by 23.3%. To take advantage of the high investment flow in the region, the East African Community (EAC) has placed incentives for development in related markets. The six-member countries of the EAC account for a sizable market of consumers for agricultural raw materials and other extracted goods. Additionally, the EAC provided necessary information and technology to increase opportunities for investment in the financial and banking sectors.

Looking Ahead

Income distribution, inflation and poverty conditions remain concerning for the region and were worsened by the COVID-19 pandemic. This means that to maintain growth and counter these chronic economic conditions, the region must implement policy that utilizes the available resources and supports economic growth.

The African Development Bank Group suggests accelerating structural transformation and strengthening the macroeconomic policy approach. This would address issues such as inflation and increase financing and trade. Another important policy recommendation is to invest in human capital. Developing a skilled workforce by starting with education for the youth and technology training will further promote innovative economic growth in East Africa and the African continent overall.

Malala Raharisoa Lin
Photo: Flickr