Archive for category: Economy

Information and stories about economy.

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House of Trade Alleviates Impacts of Fast Fashion

House of Trade
House of Trade is a new platform based on an ancient method: bartering. Inspired by the sneakerhead community, the House of Trade offers a fresh take on fashion sustainability while reducing the exploitation of underpaid workforces in developing countries and providing a safe and efficient method for sneakerheads to trade their sneakers.

House of Trade: A Trading App for Sneakers

One of only five startups chosen for the 2021 Covintus National Technology Accelerator program, House of Trade is a trading app for sneakers: an app that allows sneakerheads to use their new or lightly-used sneakers as “closet currency” to trade items with other users. House of Trade facilitates each trade using a mail-in system, ensuring authenticity and trustworthy bartering commerce.

Founded in April 2020 by Chris Holloway and Keren Nimmo, the team behind the scenes at House of Trade represents diversity and supports the colorful world of sneakerhead culture on a weekly YouTube podcast called Kicks of the Trade. The trading platform does not end with sneakers — the team plans to expand the platform to include the trade of a variety of other items, from luxury handbags and watches to streetwear and sports cards.

A Trading App’s Role in Fashion Sustainability

House of Trade reduces fashion consumption by offering its users a solution: the user’s unwanted items can stand as “closet currency” for the items they do want, lessening (or even eliminating) the need to buy factory-new fashion.

The fashion industry has a significant impact on the environment. The industry produces 10% of the world’s carbon emissions, equating to more than all the emissions of “international flights and maritime shipping combined.” In addition, the fashion sector stands as “the second-largest consumer of water worldwide” in a world where 785 million people go without access to clean drinking water. On top of this, the fashion sector contributes to “20% of all industrial water pollution worldwide.”

Pollution is especially detrimental to developing countries where the U.S. fashion industry outsources 97% of manufacturing and where toxic wastewater from factories often ends up in rivers and oceans. For example, in India, a country where the sacred but polluted Ganges River supports one of the most densely populated regions in the world, 88 million people lack access to safe water. One of the contaminants that make the Ganges unsafe is chromium, a compound for dyeing fabrics and tanning leather.

How Outsourcing Fashion Manufacturing Exacerbates Poverty

The outsourcing of manufacturing exacerbates conditions of poverty in countries where exploitative working conditions go unregulated. As an example, Nike as one of the largest makers of footwear globally sold a record 25 shoes every second in 2018. In general, Nike’s sales average 780 million pairs of shoes annually. However, the manufacturing of Nike’s massive product line is outsourced to more than 41 different countries.

By outsourcing to developing countries, Nike and other major sportswear brands can maximize production at minimum costs. But, low overheads for big companies come at a high price for the people who work in the factories. According to the Clean Clothes Campaign (CCC), a worker rights coalition that comprises more than 235 organizations in more than 45 nations, the average salaries of factory workers in Indonesia, Vietnam and Cambodia (countries where Nike contracts much of its manufacturing) are 45%-65% lower than the average “living wage.” To put this into perspective, in March 2020, the Global Living Wage Coalition reported just 7,446,294 VND ($321) as the monthly living wage for a person in urban Vietnam.

House of Trade Offers a Solution to Fast Fashion

Several advocates and unions have called out leading fashion and sportswear companies for prioritizing profits over the well-being of workers, the planet and humanity at large. With these issues coming to the forefront, many consumers across the world aim to make conscientious shopping choices to alleviate these impacts.

At the forefront of fashion industry reform, the House of Trade offers an alternative to factory-new consumerism while ensuring that sneakerheads and fashion enthusiasts have access to the styles, brands and quality they desire. In a “global sneaker resale market” that projections have determined could expand from $6 billion in 2019 to $30 billion by 2030, platforms such as House of Trade are in the ideal position to maximize profits while providing a solution to alleviating the impacts of fast fashion.

– Jenny Rice
Photo: Flickr

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5 Alternatives to Fast Fashion

Alternatives to Fast Fashion
The fast fashion industry creates inexpensive clothing to keep up with rapidly changing trends. Many brands in the fast fashion industry use cheap labor to produce garments, which often leads to the exploitation of workers and the environment. Fast fashion companies tend to target workers in low-income areas who have limited alternatives for employment. As a result, people in low-income areas are more likely to tolerate the poor, exploitative labor conditions that are prevalent in fast fashion. Microfibers and waste are often byproducts of fast fashion, contributing to water pollution and food chain disruptions, which disproportionately affect impoverished areas. Several alternatives to fast fashion can make consumers’ wardrobes more ethical and sustainable, reducing global poverty at the same time.

5 Alternatives to Fast Fashion

  1. Support local thrift stores. Thrift shopping is a simple and affordable alternative to fast fashion. Thrift shops offer clothes at more affordable prices than fast fashion companies without causing harm to workers or the environment. Individuals can also help second-hand stores thrive by donating clothes. Donating to thrift shops provides a wider range of options for consumers who cannot afford ethical, sustainable fashion elsewhere. Thrift shopping can be a great alternative for people who do not wish to promote poor working conditions in the fashion industry.
  2. Buy, sell and trade clothes online. Internet users can buy, sell and exchange clothes on a plethora of apps and websites. For example, Etsy offers a range of ethical, sustainable, second-hand and handmade clothing at varying prices. Individuals can also use social media platforms like Facebook Marketplace and Instagram to buy, sell and trade used clothing instead of supporting fast fashion brands that exacerbate poverty. Some apps like Depop are specifically designed for people to buy and sell second-hand clothes online, without the hassle of visiting a thrift store in person.
  3. Buy clothes from ethical and sustainable brands. Consumers can still purchase brand new clothes without supporting the fast fashion industry. Clothing companies like Patagonia, Boden and Kotn offer alternatives to fast fashion for people with flexible budgets. For example, through Fair Trade certification, Patagonia supports workers in low-income areas, ensuring that workers receive fair compensation under good working conditions. Patagonia also uses renewable energy for clothing production. Boden uses recyclable packaging, ensures ethical production and pays workers fair wages. Kotn creates clothes with organic materials and maintains fair and safe labor standards. Thousands of ethical, sustainable clothing companies are available to those who can afford them.
  4. Buy timeless, good-quality clothing. People who buy fast fashion may get stuck in a fast fashion cycle. Consumers often purchase cheap, low-quality items from fast fashion companies to keep up with ever-changing trends. As a result, consumers can contribute heavily to poverty and the exploitation of workers. However, clothes from fast fashion companies often wear out and do not remain in style. Individuals who have the financial means can buy high-quality, timeless clothing as alternatives to fast fashion items that only last until the next season.
  5. Learn how to make and repair clothes. Making and repairing clothes can be an affordable, sustainable and ethical alternative to buying from fast fashion brands that intensify global poverty. People who make clothes can select their own materials, keeping an eye out for ethical and sustainable fabric brands. Those who learn to sew can also repair their old clothes instead of buying new ones from fast fashion companies. Between sewing, crocheting and other methods of creating clothes, people can create personalized, unique clothes to wear with the potential of launching their own ethically-sourced businesses.

Reducing Poverty Through Ethical Shopping

Shopping ethically contributes to combating global poverty and environmental degradation. Many fast fashion alternatives exist to help consumers stand up against workplace exploitation in low-income areas. Over time, ethical clothing purchases can make monumental impacts on the lives of people around the world.

– Cleo Hudson
Photo: Unsplash

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USAID Programs in Lebanon

USAID Programs in Lebanon
USAID Lebanon celebrated World Teacher’s Day 2021 by recognizing the 35,000 Syrian and Lebanese students who received basic literacy and numeric skills through USAID’s summer catch-up program. By partnering with Lebanon’s Ministry of Education, USAID equipped 3,500 teachers with mentorship, curriculum and school supplies. This is just a glimpse of the impact of USAID programs in Lebanon.

USAID Programs in Lebanon

The United States’ relationship with Lebanon began as early as 1951. Since USAID’s commitment to assist Lebanon’s development in 2006, USAID has supported Lebanon with more than $1.3 billion worth of foreign aid. USAID’s work in Lebanon focuses on three main sectors: education, “local development and governance” and economic development. In 2021 alone, USAID contributed $41 million to fund COVID-19 relief and economic development programs in Lebanon. This funding continues to impact the lives of millions amid rising poverty levels in Lebanon.

It is important to note that Lebanon has not always needed this level of support. Once a continental trade center, Lebanon has a rich development history, complete with rising income levels and GDP growth. A 15-year civil war ending in 1990 disrupted the value of the Lebanese pound, creating a snowball effect of economic casualties. With the compounded effects of COVID-19, a global recession and a refugee crisis, 82% of the Lebanese population lives in multidimensional poverty in 2021.

Improving Education in Lebanon

USAID programs in Lebanon focus on improving education systems, acknowledging that education is a proven tool for long-term poverty reduction. The current state of the Lebanese public education system is poor. Noting the dilapidated school infrastructure in Lebanon, USAID aims to provide rehabilitation support to Lebanon by “helping to renovate nearly a third of all Lebanese public schools. “Additionally, USAID is supplying all 256 public high schools with “science lab equipment.” To improve the quality of education, USAID is “training 75 English-speaking teacher trainers from the Ministry of Education on the methodologies of teaching the subjects of English, science and math.”

The Reaching all Children with Education (RACE) program ran from 2013 to 2016. The second phase of the program will reach conclusion at the close of 2021. RACE aims to enhance “access to formal education for 460,000 Syrian refugee children and underprivileged Lebanese children in the country.” RACE’s phase 2 aims to accomplish this “by expanding equitable access to schooling, improving conditions for learning and strengthening management of the education system.”

To promote higher education as a means to decrease poverty, USAID has supplied full university scholarships “to more than 1,300 Lebanese and refugee students.” USAID also helps 12 higher education institutions in Lebanon “to better prepare their graduates” for success in the job market after their studies.

Local Development and Governance

USAID programs in Lebanon work with local governments to build better civil services, increase access to drinking water and modernize technical infrastructure. The water and sanitation program has invested $180 million since 2006 in order to rehabilitate water infrastructure. This program has increased drinking water access for 620,000 Lebanese citizens and 120,000 Syrian refugees. Since 2012, more than 1.3 million Lebanese people have experienced the positive impacts of USAID’s “almost $200 million investment to improve basic services, including renewal back-up power generation and clean water provision.”

Beyond funding, USAID also works to provide local governments with technical training and resources. Through this work, 270,000 individuals experienced increased earnings through job creation and technical development. USAID predicts that the number of beneficiaries will reach 645,000 by 2022.

Economic Growth

Finally, USAID programs in Lebanon provide funding, training and resources to improve economic development. Over the last seven years, $113 million in funding has benefitted more than 20,000 companies, startups and small businesses. Additionally, this assistance has led to the creation of thousands of new jobs and tens of millions of dollars in leveraged funding. By investing in economic development, USAID works to kickstart long-term poverty reduction.

Looking Ahead

By funding education, local governance and economic development, USAID programs in Lebanon improve the lives of millions of impoverished Lebanese people. The programs provide both short and long-term relief, bolstering Lebanon’s ability to bounce back from decades of economic disruptions.

– Aiden Marina Smith
Photo: Flickr

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GoodDollar Promotes Universal Basic Income

GoodDollar
GoodDollar is both the name of an Israeli cryptocurrency and a not-for-profit company launched in 2020. Cryptocurrency is an immaterial system of money that has secure coding. Additionally, people can exchange it virtually and governments do not control it. Yoni Assia is the mind behind the GoodDollar project and coin (G$), the virtual currency that intends to democratize the economy by working to promote universal basic income and reduce inequality. Universal basic income (UBI) is “a periodic cash allowance given to all citizens… to provide them with a standard of living above the poverty line.” Here is some information about how GoodDollar promotes universal basic income (UBI).

GoodDollar’s Mission

According to Forbes, 80% of the population owns only 6% of the world’s wealth, while the remaining 20% owns the rest. Against this unfair backdrop, GoodDollar is a potential game-changer through how it promotes universal basic income.

Yoni Assia believes that “too many underprivileged people are locked out of opportunities that could take them out of poverty, including access to capital markets and digital work opportunities. Therefore, the GoodDollar project aims to alleviate that by fostering financial inclusion and empowerment around the world.” The creator of GoodDollar is also the founder of eToro, a social trading company and platform, which is responsible for investing $1 million in the new cryptocurrency.

How GoodDollar Works

GoodDollar can benefit anyone who signs up and creates an account (a wallet). For that, people need to record a short video to ensure that they are real humans, not bots, and they can complete the entire sign-up process in less than 5 minutes. There are two groups of users, claimers and supporters. Claimers are people who benefit from free digital cash (G$) without the need to invest any amount, being allowed to claim it every day and use it to pay for goods, services and exchange it with friends. Up to now, 255,000 claimants have received G$180 million, totaling more than $20,000. Supporters are both companies or regular people that believe in the UBI cause and fund a mechanism that generates interest (the DeFi — decentralized finance, protocol).

Interest generates in a blockchain, a kind of extremely safe digital information record system, and becomes the reserve of G$ coins to that undergoes distribution among claimers and supporters. The supporters benefit not only from the interest generated by their initial staked amount, but also the interest generated on top of the previous interest rate. Currently, only small businesses accept G$ coins, and they are not very valuable. However, as more people join the GoodDollar movement, its value will rise.

Hope for GoodDollar’s Growth

“Inequality plagues the world. Let’s solve for it in our future,” is a statement on GoodDollar’s website. The company is still in its early stages, but getting ready to release version 2.0 of the GoodDollar protocol. In the first year of the second version, it plans to distribute around $47,000 worth of G$. AI Multiple’s review on GoodDollar points out that, to grow and make a real difference in its users’ lives, GoodDollar needs to have more supporters and a G$ reserve that grows “faster than the number of claimers.”

The more people use this cryptocurrency, the more valuable it will become. If “a public figure sheds a light on it via their social media platforms or accepts it as a payment method for a business product or service, that could boost its popularity.”

A Promising Future

The Forbes article discusses how basic income distribution could help to reduce the financial inequality that the pandemic exacerbated, and the GoodDollar team has been working hard to make it a reality someday. While the future of the project depends on a combination of factors, blockchain solutions like GoodDollar are undeniably promising and revolutionary economic models.

Tal Oron, GoodDollar project director, hopes that within a few years, “GoodDollar [will distribute] $2 a day per person, and, together, as a global community, without government support, raise hundreds of millions of people above the poverty line.” The way that GoodDollar promotes universal basic income will only benefit people globally.

– Iasmine Oliveira
Photo: Flickr

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Economic Diversification in Saudi Arabia

Economic Diversification in Saudi Arabia
Saudi Arabia’s most prominent industry is the oil and gas industry. The oil and gas industry has made Saudi Arabia extremely wealthy. However, in recent years, the government has decided to diversify the economy. The involvement of more industries in the job market could create more jobs for Saudis. Here is some information about economic diversification in Saudi Arabia.

Oil and Gas in Saudi Arabia

Saudi Arabia provides about 11% of the world’s oil. It is the second-largest oil provider after the U.S. Since 1938 when Saudi Arabia first struck oil, the gross domestic product (GDP) regarding oil and gas has seen mostly positive growth. Conversely, the oil and gas sector makes up 50% of Saudi Arabia’s GDP. The oil and gas sector also makes up 70% of all export earnings. However, some estimates go as high as 90%.

Saudi Aramco is the official oil company in Saudi Arabia. In 2020, Aramco made $229.9 billion USD in revenue and employed 66,800 people. The average salary people receive at Saudi Aramco is $129,083. Even on the lower spectrum, the salary is around $60,000. Good pay creates high competition for any other job market that tries to take off. In addition, creating more jobs that are not in the oil industry is beneficial because people of all skills and education levels can seek employment.

Saudi Arabia’s Dependence on Oil and Gas

In 2016, Saudi Arabia announced a new program called Vision 2030. One of the focuses of this program is economic diversification in Saudi Arabia. Specifically, the goal is to broaden Saudi Arabia’s exports and income possibilities from oil and gas to other necessary avenues like transportation and entertainment.

Economic diversification in Saudi Arabia has already proven to be beneficial because oil prices took a massive hit during the ongoing pandemic. China is one of Saudi Arabia’s largest oil importers. Because of the pandemic decreasing travel, Saudi Arabia’s oil exports to China have drastically decreased as well. In addition, Saudi Arabia’s oil exports to the rest of the world have declined because of the pandemic. The severe decrease in oil exports has contributed to the lowering of its GDP from 0.3% in 2019 to -6.8% in 2020. These numbers show how the reliance on gas and oil is detrimental to Saudi Arabia’s economy.

Diversifying Saudi Arabia’s Economy

The goal for the revamp of Saudi Arabia’s economy is not just about diversity but also about making knowledgeable job growth decisions that make sense for Saudis. The goal is to have an economy that relies more heavily on the private sector than the government. Getting Saudis working in the private sector and creating jobs that match people’s skills will be crucial to the success of this plan.

The government’s plans on achieving economic diversification are to increase foreign investment, increase the amount of small and medium businesses and create jobs by developing what the government is calling mega-projects. Mega-projects and the new jobs could be part of several sectors looking to expand including tourism, transportation, entertainment and others.

While the drop in oil sales has created setbacks in the economic diversification of Saudi Arabia, that has not discouraged the country. Despite COVID-19, Saudi Arabia is determined to continue the diversification process by continuing with already planned projects.

– Shelby Tomassini
Photo: Flickr

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COVID-19 in New Zealand

COVID-19 in New Zealand
New Zealand is a developed country in the continent of Oceania, with a population of about 5 million inhabitants. Throughout the COVID-19 pandemic, New Zealand has maintained a low number of deaths and cases. The following will present reasons for why New Zealand has had this success, along with ways in how the pandemic affected the country.

Statistics

The total toll of cases of COVID-19 in New Zealand has remained low throughout the pandemic. With a total of 4,352 overall cases and 27 deaths as of September 2021, New Zealand has a fairly low rate of cases.

Since the start of the global pandemic in 2020, New Zealand has been very cautious in taking preventative measures to avoid spreading the virus. The country banned foreigners from entering from China the day after the announcement of the virus, and imposed a 14-day quarantine period for any citizens entering the country. As the course of the pandemic progressed, New Zealand also placed a ban on several other countries where the virus was most prominent. The primary reason for New Zealand’s success in reducing cases was their quick response to preventing the virus and keeping their citizens safe.

In addition to this preventative method, New Zealand’s government has also established a concrete plan in eliminating the virus from their country. This method has once again proven effective in New Zealand due to their quick decision-making. Their elimination plan was in the works as early as July 2020. Though there is no concrete definition for a COVID-19 elimination plan, it is clear that New Zealand prioritized restricting foreigners’ entry into the country, particularly those from high-case countries. As the surveillance of New Zealand’s low COVID-19 case number continues, it is likely that the country will be among the first to re-open completely and successfully.

Economy

The most significant effect of COVID-19 in New Zealand originated in its economy. The primary effect on New Zealand’s economy occurred in its agriculture industry. Since New Zealand is a single island, it is relatively isolated from other major countries, making it reliant on its own resources during crises. However, when the pandemic began, a major problem occurred in its agricultural sector. Firstly, there was a surplus of pigs due to the closure of butcheries and other non-essential meat distributing industries. Following this, around 2.5 million bees because workers were not able to go to their location to feed them.

In addition to these examples, New Zealand’s unemployment rate also reached a maximum of 5.3% during the pandemic, which is now beginning to regulate itself. However, New Zealand’s government has claimed that its intense closure measures will benefit its economy eventually by making it one of the first countries to relieve all restrictions successfully.

In conclusion, New Zealand has successfully implemented COVID-19 restrictions at the beginning of the pandemic, thus making their plan beneficial to their population. Though COVID-19 in New Zealand had taken a toll on the population, their rapid prevention methods ensured their success. There is a significant chance that New Zealand’s economy will quickly recover from the pandemic, leaving other countries to learn from their success.

– Andra Fofuca
Photo: Unsplash

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Everything to Know About Poverty in Turkey

Poverty in Turkey
Conditions seemed to improve for the disadvantaged in Turkey for a decade-long period through the early 2000s. When first elected, President Recep Tayyip Erdoğan purported to lift the country out of the severe economic recession in progress at the time. Unemployment and poverty rates plummeted until 2013 when civil unrest roiled after the Turkish government’s violent response to the Gezi Park protests in Istanbul. Foreign investments in Turkish government bonds fell from 25% in May 2013 to 5% by 2020. Now, Turkey is once again experiencing a poverty crisis. Here are five facts about poverty in Turkey.

5 Facts About Poverty in Turkey

  1. Turkey has been in a financial crisis since 2018. The Turkish lira is devaluing, worth only $0.12 to the U.S. dollar and $0.10 to the euro. The rate of inflation reached 17.53% in July 2021. This means that along with many Turks losing their jobs, they must grapple with the rapidly growing costs of basic necessities. Food inflation alone has increased by 20% since 2020.
  2. COVID-19 is exacerbating poverty in Turkey. About 17 million people out of a population of 81 million lived below the poverty line in 2019. Now, the poverty rate has increased to about 12%. Many Turks are struggling to find employment and cannot pay for accommodation or electricity. These conditions have additionally prevented children from continuing education remotely.
  3. Turks are finding new ways to secure themselves in an unpredictable economic environment. Investments in cryptocurrency, stocks, gold and foreign currency are gaining traction among Turkish people. Many fear losing their savings if they do not take such actions. However, even these methods may be at risk of destabilizing as Turkey’s economic crisis progresses.
  4. It is increasingly difficult for the Turkish government to accept Syrian refugees. This is largely due to the continuing economic crisis and lessening support for Syrian immigration from citizens. The European Union assisted 1.6 million of the most vulnerable refugees through a program called Emergency Social Safety Net. Each family received monthly cash transfers of 120 Turkish lira for each family member. This has also helped the Turkish government manage struggling refugees. Poverty in Turkey is impacting the country’s ability to serve as a safe location for Syrian refugees.
  5. The World Bank is taking steps to respond to increasing poverty rates. In the fiscal year 2020, the World Bank established the Safer Schooling and Distance Education Project, providing $160 million worth of aid. Two new programs added in 2021 include the Emergency Firm Support Project, worth $300 million in aid, and Rapid Support for Micro and Small Enterprises During COVID-19, worth $500 million. The programs aim to preserve jobs for the Turkish people. So far, this fiscal year, the World Bank has given Turkey $1.5 billion in assistance. Many other World Bank projects will continue to mitigate poverty in Turkey.

Looking Ahead

The state of poverty in Turkey is in flux. The country continues to struggle with an economic and refugee crisis in the midst of a pandemic. With the support of the European Union and the World Bank, however, Turkish people in need will have the ability to combat poverty.

– Safira Schiowitz
Photo: Flickr

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COVID-19’s Effects On Asia’s Economy

Asia's Economy
The COVID-19 pandemic has caused severe economic disparities globally. Specifically, those living on the Asian continent have experienced significant economic damage and hindrance to their broad economic goals. About 15 million Southeast Asians have become impoverished since the onset of the pandemic in 2019. The delta variant, along with a resurgence of national lockdown measures, has caused another case of economic damage. Through analyzing COVID-19’s effects on Asia’s economy, it is clear that the continent can implement strategies in order to combat these high rates of poverty and economic disparity.

Low Vaccination Rates

Overall, Southeast Asia has lower-than-average vaccination rates compared to the rest of the world. However, some Southeast Asian countries have better vaccination rates than others. Singapore has the highest vaccination rate, at 77.3%, whereas Vietnam has the lowest vaccination rate at 7%. As Southeast Asia is Asia’s major area for good economic production, this has led to a decline in economic growth. These low vaccination rates have allowed COVID-19’s effects on Asia’s economy to be extremely negative as low-income countries have had low vaccine rates due to their economic disadvantage. Around 55% of individuals who live in higher-income countries have been vaccinated with at least one of two vaccination dosages whereas 1% of individuals who live in lower-income countries have received one of two vaccinations.

National Lockdowns

In Southeast Asia, as cases have risen due to the delta variant beginning in July 2021, strict lockdown restrictions have become reimplemented. The implementation of lockdowns worldwide in 2020 was common as countries felt this would be an effective way to quickly decrease the number of people who contracted COVID-19. Lockdowns were extremely effective in decreasing the spread of COVID-19; however, they also caused a negative effect on the global economy. In Asia, lockdowns caused a severe drop in retail sales. For example, vehicle sales in China have been steadily decreasing each month; more recently, they decreased by 11.9% in July 2021. Factories have also stopped production as a response to the surge of cases since July 2021. Southeast Asian countries have also had to enter lockdowns again. This has caused the negative effects of COVID-19 on Asia’s economy to resurface, with yet another decrease in retail sales.

The Delta Variant

The COVID-19 delta variant is more infectious than the original COVID-19 strain, causing a spike in cases for Southeast Asian countries that began in July 2021. The delta variant of COVID-19 has caused both a surge in COVID-19 cases worldwide and a resurgence of the 2020 economic downturn that came with the very beginning of the COVID-19 pandemic. The effects of Southeast Asia’s low rates of vaccination have caused a spike in COVID-19 cases in addition to the delta variant, factoring into the reasoning behind the reimplementation of national lockdown measures.

Looking Ahead

A large and overarching goal of Asia in its entirety is to increase rates of vaccination in each Asian country as a response to this economic decline. The World Health Organization’s (WHO) regional director of Southeast Asia, Dr. Poonam Khetraapal Singh, has a goal to have the Southeast Asian population 40% fully vaccinated by 2021. This strategy against economic disparity uses the COVAX initiative, a plan that WHO put in place that advocates for global access to COVID-19 vaccines. The COVAX initiative especially targets low-income countries and works to help them gain equitable access to not only vaccines but also to COVID-19 testing and treatments.

If Asia successfully increases its vaccination rates, there is hope that the Asian economies will be able to continue with their goals of economic growth.

– Francesca Giuliano
Photo: Unsplash

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USAID’s Intervention in Sierra Leone

USAID’s Intervention in Sierra Leone
Sierra Leone’s decade-long civil war (1991-2002) commenced a humanitarian crisis that severed its relationship with the international community. The conflict decimated the country’s infrastructure, stinted its agricultural economy and killed over 50,000 citizens. At its end, the war left a legacy of destruction and bequeathed to its predominantly young citizens a highly underdeveloped economy with no strategy for reconstruction. As a result, for the last century, Sierra Leone has desperately needed economic aid for reconstruction to repair its infrastructure and stimulate economic productivity. In response, USAID has worked alongside Sierra Leone’s administration, granting foreign aid to help with development and poverty alleviation. Following USAID’s intervention in Sierra Leone, the country evolved and is slowly incorporating itself back into the international community. 

Infrastructural Development

Infrastructural development fosters steady trade and higher profits and enhances the economy. Consequently, it increases wages and results in a higher quality of life for people.

In recent years, the relationship between infrastructural development and poverty alleviation has become noticeable in Sierra Leone. In 2015, the United States Government’s Millennium Challenge Corporation gave the underdeveloped country $44.4 million to rebuild infrastructure, homes and highways. As a result, Sierra Leone has made significant strides, creating a network of highways as well as the Freetown Port, which could increase boat traffic by 30%. In 2021, the United States International Development Finance Corporation (DFC) also pledged to give $217 million for a new power plant in Freetown, “providing power generation to meet approximately 24 percent of projected electricity.”

With the help of foreign aid, Sierra Leone also published the “New Direction” manifesto, an infrastructure plan that will connect valuable mining belts through a series of roads and construct a new railway line through its provinces. Infrastructural development has also let Sierra Leone adopt humanitarian initiatives, evident in its establishment of the Ministry of Water Resources in 2013. Although the project has a pending deadline, it promises to provide 21,000 m3 of portable water, which will serve 420,000 citizens located in the East of Freetown communities.

Such initiatives will allow for trade efficiency and economic independence, which will augment Sierra Leone’s economy, alleviate poverty and let the government provide for its citizens. USAID’s intervention in Sierra Leone has resulted in infrastructural reconstruction initiatives, which will continue to fuel economic and social uplift.

Economic Productivity

To further assist economic growth, the United States invested $12 million for development in Sierra Leone’s agricultural sector, which accounts for 60% of the country’s GDP. These funds will let Sierra Leone buy the technology and equipment it needs to expand its agricultural sector onto previously uncultivated lands, which make up 75% of the country. Such an expansion would decrease the percentage (80%) of foodstuffs it imports from other countries and allow for further economic self-reliance. A thriving agrarian sector would also derive higher profits and provide the funds for higher quality fisheries, improved mining techniques and other large-scale business enterprises.

Overall, these economic developments, which USAID’s intervention in Sierra Leone spurred on, have positively affected its economy, which has increased 5.1% to a GDP of $4.2 billion. In 2016, labor employment grew to 2.472 million, contrasting the 1.985 million employed in 2004. Recently, only 4.47% of the total labor force did not have employment. These numbers hold a bright future for Sierra Leone’s economic productivity and, as such, promise to eradicate the poverty that has long plagued its borders.

Medical Institutions and Aid

USAID’s intervention in Sierra Leone has also involved disease relief by aiding the country’s medical sector. In 2014, an Ebola outbreak contaminated 14,124 Sierra Leoneans, killing 3,956 people. In response, USAID established the Pillar II activities and investments, where U.S. organizations and partners gave $2.4 billion to Sierra Leone’s government, and West African countries, to contain the fatal disease. Significantly, 60% of these funds went into Sierra Leone’s medical sector, effectively strengthening the country’s healthcare system and putting an end to the spread of Ebola. USAID continues to support Sierra Leone’s medical field, beginning the Strengthening Post-Ebola Health Governance (SHG) program in 2017, which gives healthcare services and establishes Village Development Committees (VDCs) to oversee health services throughout the country.

By helping improve Sierra Leone’s health services, USAID not only saves lives and neutralizes viral diseases but also contains them before they infiltrate the international community. USAID’s intervention in Sierra Leone has let the country prosper and move away from its dark past. Sierra Leone’s civil war ravaged its infrastructure and economy, while Ebola exposed the weakness of its medical sector. However, organizations such as USAID have significantly impacted reconstruction, thereby promising a brighter future for countries that have been long underdeveloped.

Although USAID’s intervention in Sierra Leone has proved beneficial, more progress is necessary. Funding from countries and organizations will be beneficial for Sierra Leone so that it can prosper well into the future.

– Jacob Crosley
Photo: Flickr

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Egyptian Economy Fighting for Momentum

Egyptian EconomyEconomies worldwide have been hit hard by the pandemic. However, few have been able to come out positively. The Egyptian economy has been able to make meaningful economic progress, such as through GDP growth, throughout 2020 and 2021. As it is working toward poverty reduction, Egypt is an example of how to keep an economy steady. Egypt has been fighting poverty for more than a decade now – a third of Egyptians live in poverty and half of the population is either in or near poverty.

Egypt’s Economic Steps

The Egyptian economy has taken economic hits in the past several years. However, that does not mean recent steps are not worth mentioning. Egypt has recently seen poverty reduction for the first time in 20 years due to the reforms taken by the government. At the end of 2016, several economic reforms started a turning point for Egypt. The Economic Reform Program is made up of currency policies, decreasing dependence on fuel and electricity, increasing job opportunities (particularly for women), implementing structural business reforms, and endorsing economic acts to further progress. Certain moves also attracted many investors to Egypt, boosting the economy. Social programs targeted at more individual and community levels have also lifted 1,000 villages out of poverty. These broad economic reforms have also strengthened Egypt for the pandemic.

COVID’s Impact, and Fighting Through It

The past few years have had a monumental impact worldwide. Nearly every economic power has suffered a decline or a recession. One worry within Egypt is that the recent growth would collapse on itself. The pandemic did impact job creation and the private sector, but not enough to make a dent in progress. Previous actions have cushioned Egypt, such as the poverty rate going down from 32.5% to 29.7% in the fiscal year 2019-2020. This monumental victory for Egypt and for poverty worldwide took place over two years.

The Future of Egypt

Egypt Vision 2030 is the long-term future that is planned out for Egypt. As Salah Hashim, advisor for the Ministry of Social Solidarity for Political Policies, put it, “Egypt Vision 2030 has focused on promoting social justice, not only helping the poor and low-income people like before.” This shows that Egypt is willing to tackle injustice in multiple systems. The Egyptian economy should be an example for other countries struggling to build economic growth sustainably. While poverty is still abundant, this growth shows a bright future for Egypt’s economy and its future.

– Audrey Burran
Photo: Flickr