Archive for category: Economy

Information and stories about economy.

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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

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How Starbucks is Fighting Global Poverty

Coffee Economics: How Your Cup of Starbucks is Fighting Global PovertyStarbucks is fighting global poverty. Their website boasts that they are “making coffee the world’s first sustainable product to improve the lives of at least 1 million people in coffee communities around the world”. How does this pertain to global poverty? It is simple – of the world’s poorest countries, many are also the top producers of coffee. Brazil, Vietnam, Colombia, Indonesia, and Ethiopia are the top 5 producers of coffee in the world. These 5 countries additionally experience some of the highest poverty rates in the world. Starbucks has undertaken the mission of giving back to those who laid the groundwork for what has made their business so successful for 50 years, the coffee farmers.

Global Farmer Fund

With the goal of turning coffee into a sustainable product, in 2008, Starbucks founded the Global Farmer Fund Program. Starbucks founded this program to aid coffee farmers in developing countries. Before the launch of the program, Starbucks actually provided its first loan to a farming project in Mexico in the year 2000. This first loan allowed Starbucks to see the effect that such a program could have for farmers in need in developing countries. At the inception of the program, Starbucks pledged to provide $20 million to coffee farmers in need. In 2015, Starbucks committed to providing an additional $30 million, raising the Global Farmer Fund to a $50 million-valued program. According to Starbucks, “By providing access to capital, farmers have the ability to make strategic investments in their infrastructure, offering the stability they need to manage ongoing complexities so that there is a future for them and the industry”.

Fairtrade International

In order to meet their sustainability goals, Starbucks also partnered with Fairtrade International. Fairtrade International’s website boasts, “We transfer wealth back to farmers and workers in developing countries who deserve a decent income and decent work. We are the leading independent global movement for trade justice, and we are still the most recognized and trusted sustainable trading standard in many leading markets.” Fairtrade International makes sure that coffee farmers are getting paid fairly for their work, and in return, farmers adhere to environmental and labor standards set by the organization.

Fighting Poverty

The production of coffee plays a major role in the global economy, particularly in regions that are home to many living below the poverty line. Sustainable coffee production allows for an ethical and lasting source of income that has the potential to not only lift many out of poverty but keep them above the poverty line for generations to come. With Starbucks supporting fair trade agreements, they are protecting the integrity of their company at the root, while also improving the lives of coffee farmers in developing countries. Support for companies that implement programs, such as the Global Farmers Fund, and acknowledgment of the impact they are making shows Starbucks is fighting global poverty with sustainable poverty reduction.

– Michelle M. Schwab
Photo: Unsplash

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Made in China 2025 Aims to Reduce Poverty

Made in China 2025Over the last few decades, the Chinese economic miracle has astounded pundits across the globe. When reforms began in 1978 under Deng Xiaoping, China accounted for about 5% of the world economy. In 2020, that figure was more than 17% and rising quickly, second only to the United States. During the same period, extreme poverty was effectively erased, down from a high of 90% in 1981. The Made in China 2025 initiative aims to reduce poverty even further and ignite economic growth so that China can avoid the middle-income trap.

Poverty and the Middle-Income Trap in China

In some ways, many of these figures paint an inaccurate picture of the Asian giant. China is wealthy but its population is enormous, meaning that average incomes remain relatively low. In the United States, GDP per capita is almost four times higher than China’s. Furthermore, Chinese economic growth is slowing. Ballooning levels of debt and an aging population create worry for Beijing, even as the Communist Party celebrates its 100th anniversary. Economists fear that China could fall into the middle-income trap, a situation where rising wages for developing countries erode their manufacturing advantage but their innovative sectors remain too small to compensate.

Radical Planning for a Radical Problem

In 2015, preempting these concerns, Chinese leadership announced the Made in China 2025 initiative, hoping to move the nation up the value chain. As Harvard University explains it, the strategy intends to “secure China’s position as a global powerhouse in high-tech industries.” Furthermore, “the aim is to reduce China’s reliance on foreign technology imports and invest heavily in its own innovations in order to create Chinese companies that can compete both domestically and globally.” If China succeeds, it will create a blueprint for other developing countries in Africa and Asia to bypass the middle-income trap and liberate their populations from the grips of poverty.

Made in China 2025 outlines 10 key industries that the nation must master if it seeks to move up the value chain.

  1. Information technology
  2. Robotics
  3. Aerospace equipment
  4. Pharmaceuticals
  5. Medical equipment
  6. Electrical equipment
  7. Farming
  8. Railway equipment
  9. New energy vehicles
  10. Ocean engineering

From artificial intelligence to quantum computing, China has poured billions into developing cutting-edge technology. The U.S. administration cast the effort as an attempt to displace U.S. technological leadership, sanctioning Chinese companies from doing business with their suppliers in the United States. In reality, much of the motivation behind the Chinese initiative stems from a more basic goal: lifting the nation out of poverty and inspiring other nations to do the same.

Avoiding the Middle-Income Trap

The middle-income trap that confronts China is daunting as only a few countries have ever escaped its grasp. Most prominent were the Asian Tigers — South Korea, Taiwan, Hong Kong and Singapore — economies that defied the odds and delivered decades of sustained growth. But, many have failed to replicate the Asian Tigers’ success. Nations like Brazil and South Africa became mired in the middle-income trap, unable to escape the hard ceiling.

The danger for developing countries around the world is a run-in with the same fate. Before COVID-19, African nations were fast-growing. The World Bank predicted that many would reach middle-income status by 2025. But, upon achieving this milestone, they would encounter the same middle-income trap that Brazil and South Africa once faced. If this occurred, the region could be forever stuck in a grey zone, one where poverty would be reduced but not eliminated.

Looking to China

China offers a solution. If nations can move up the value chain with enough speed, they can escape the middle-income trap. Governments can help. The Communist Party has poured billions of dollars into research and development for Made in China 2025, creating some of the world’s largest technology companies in the process. African and Asian nations can do the same on their path to development.

Of course, investment has its downsides. Corruption takes a significant toll on the ability of a government to distribute funds in an appropriate manner. Tackling this problem will not be easy or simple, but a roadmap to success has been laid. With the rise of Asia and Africa in the decades ahead, countries have a chance to crush poverty and increase welfare for billions of people.

– Zachary Lee
Photo: Flickr

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The New National Payments System in Somalia

National Payments System in SomaliaThe Somali government recently secured support from the International Monetary Fund (IMF) and World Bank to create a central payments system that will aid in rebuilding Somalia’s economy. Millions of Somalis have suffered for the preceding two decades as a result of insufficient economic infrastructure. The combination of economic distress due to widespread counterfeiting, displacement as a result of climate-related pressures and the ensuing threat of al Shabaab, an al-Qaeda affiliated terrorist organization, has left Somalia decimated. The national payments system in Somalia presents a glimmer of hope in the fight against widespread poverty in Somalia.

National Payments System

A national payments system simply refers to the infrastructure within a specified country or locality that allows for commercial and financial transactions to occur. This includes a network of banks and a messaging and routing system. The system protects the information and transactions of the public, secures their finances and acts as an avenue into the global economy. A national payments system is essential to the efficacy of national economies and their involvement on a global financial scale. Until recently, Somalia existed without a national payments system. Domestic financial transactions largely used the U.S. dollar given the prevalence of counterfeit currency in the use of Somali shillings and that little to no domestic financial infrastructure was in place. This financial foundation hamstrung the Somali people and economy to the whim of exterior powers that provided such infrastructure in its most rudimentary form. During this period, Somalia has been in civil war, riddled with environmental decay and stifled by the threat of al Shabaab. All of the aforementioned conditions created an economic situation in which 64% of the population lives in absolute poverty in Somalia. The national payments system presents a monumental step toward economic progress.

What the Future Holds

With the introduction of a national payments system in Somalia, the Central Bank of Somalia Governor Abdirahman M. Abdullahi stated that “the impact on the economy will be unprecedented. It will boost trade and business… and will enable more financial inclusion in a secure and safe manner.” The Central Bank of Somalia has also issued its first Visa card and its first mobile phone-centered financial system. During this time, the government has additionally increased its regulation and production of the Somali shilling. All these financial advancements have boosted the IMF’s predictions of Somali economic growth to 2.9% in the next year.

Further Humanitarian Developments

In addition to the progress brought by the national payments system in Somalia, the Somali government has recently passed election and healthcare reform bills to increase equity in their political and social infrastructure. The National Elections Security Committee, a newly founded governmental body, has begun work on a new initiative to guarantee that at least 30% of the electorate consists of Somali women. The committee has additionally begun numerous programs to protect election integrity and voter privacy. Support from international bodies ranging from the World Bank to the IMF is essential to the efficacy of domestic progress in Somalia. On the other hand, it is important to note from where the motivation for such changes has arisen. It was not international groups that began the charge for Somali advancement. Rather, the impetus for this progress came from domestic pressure, not foreign assistance. Through the example that Somalia set, one can easily grasp the potential for self-sufficient humanitarian growth. All the changes are recent and will hopefully be immediately impactful in the global and domestic effort to end poverty in Somalia. – Jonah Issac Stern Photo: Flickr
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The Downfall of Romanian Gymnastics

Nadia Comaneci
The dynasty of Romanian gymnastics dates back to the 1976 Montreal Summer Games when Nadia Comaneci earned the first perfect score in gymnastics for her uneven bars routine. Her success kickstarted a legacy of greatness for other Romanian teams in future games.

Fast forward 40 years and the story changed significantly. In 2016, the Romanian team’s fifth-place Olympic qualifying finish terminated their ability to defend their country’s four-decades-long medal streak in the sport. The sole athlete to represent Romania in women’s gymnastics was Catalina Ponor who competed on the floor and balance beam apparatuses but failed to win a medal.

The downfall of Romanian gymnastics is not due to a lack of talent or ability. Rather, it is due to a combination of economic factors that make Olympic glory less lucrative than in years past.

The History of Romania’s Economy

From the mid-1970s to the late 1980s, Romanian communist dictator Nicolae Ceauşescu held a firm grip on the country’s economy. Unlike other Eastern European nations, Ceauşescu felt the best way of controlling the economy was to dictate individual economic transactions and freedom.

In a 1974 speech, he stated that “To give everyone the freedom of spending society’s money on whatever, and however, it might strike one’s mind—this is not possible. We have a planned economy. Nobody has the right to build or produce what is not provided for by the Plan. “The practices of restrictive employment cards and decreased labor movement made individual economic growth difficult to attain.

The Reward of Winning

Each country differs in its rewards for Olympic champions. In 2016, the BBC reported that Romanian athletes earn $79,000 and a monthly income for life if they win gold.

As of 2021, the minimum wage in Romania is just under 500 EUR. Just 10 years ago, it was less than half of the current average.

The prize for winning gold is still relatively high in comparison to the minimum income in Romania. However, the reward may not be worth the cost of lifelong dedication and, at times, abuse.

Abuse in Romanian Gymnastics

The downfall of Romanian gymnastics was inevitable. Just in 2021, Olympic coaches Bela and Martha Karolyi received accusations of abusing Romanian and American gymnasts as early as the 1960s.

In particular, the previously mentioned Nadia Comaneci was one of the athletes who experienced abuse. She was “starved to the point of developing eating disorders, slapped and denied medical treatment,” according to The Washington Post. Romanian author Stejarel Olaru’s book, “Nadia and the Securitate,” further details her abuse.

Olaru further detailed the abuse, saying that “the girls ate toothpaste before going to bed – this is how hungry they were. In some cases, they talked about drinking water from the toilet tank in secret because they were often not allowed to drink water.”

The Karolyis defected to U.S. in 1981. Bela coached all-around gold medalist Mary Lou Retton and the 1992 U.S. national team. Martha coached the gold-medal-winning 1996 U.S. national team.

The Current State of Romania’s Economy

Since 2019, the primary economic focus has been on, according to the World Bank, “strengthening Romania’s institutions, advancing poverty reduction and promoting shared prosperity” through:

  1. Providing equal opportunity for success.
  2. Growth within the private sector.
  3. Prevention of economic shocks.

The International Bank for Reconstruction and Development (IBRD) allocated almost $2 billion. This money went to various sectors such as education, health and the environment.

The Reimbursable Advisory Services (RAS), a World Bank program, dedicated another $114 million for “improved strategic planning and budgeting, evidence-based policymaking, protection of the vulnerable, disaster risk management, human development and strengthened capacity for monitoring and evaluation.”

The Advisory Services and Analytics (ASA) program, also through the World Bank, funds projects such as the inclusion of the minority ethnic group Roma, development of the business sector and improved infrastructure.

The Connection to Gymnastics

The improved economic situation in Romania allows for the average Romanian citizen to achieve moderate economic comfort. If a Romanian wants to succeed economically, they can now attain it through more traditional means such as working or acquiring an education.

Simply put, there is less of a need to dedicate life to sports like gymnastics to live a comfortable life. The wider range of economic opportunities and the abuse that plagued the lives of 1970s Romanian gymnasts like Comaneci attributed to the downfall of Romanian gymnastics.

– Jessica Umbro
Photo: Flickr

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How Vietnam Improved Its Economy

How Vietnam improved its economy
Vietnam has seen a tremendous amount of growth in various sectors over the past three decades. This growth is largely due in part to economic reforms that have undergone implementation in the country. Before the reforms, Vietnam remained one of the poorest countries in the world. However, it has since grown to become a country with a lower-middle income. The GDP of Vietnam grew tremendously between 2002 and 2018 by increasing 2.7 times. Even in the face of the worldwide COVID-19 pandemic, the economy of Vietnam has been able to remain steadfast and resilient through trying times. Here is some information about how Vietnam improved its economy.

The Doi Moi Reforms

The Doi Moi reforms that the government implemented in 1986 helped Vietnam improved its economy. Under these reforms, Vietnam as a country took three significant steps as a country that would help improve the economy. The first of these steps was embracing free trade.

For many years, Vietnam has entered into various free trade agreements with numerous nations. One includes ASEAN, which Vietnam became a part of back in 1995. Vietnam and the U.S. partnered together by signing a free trade agreement in 2000, and seven years later, Vietnam joined the World Trade Organization. By joining these institutions and forming these alliances, Vietnam has been able to reduce the number of tariffs on imports coming into the country and exports leaving the country.

Making Changes

The second step that the Doi Moi reforms took to better the economy was implementing deregulation and making it cheaper for companies to conduct business within Vietnam. One way this occurred was through the enactment of the Law on Foreign Investment which passed in 1986. This law allowed companies from foreign countries to come into Vietnam to conduct business. Over the years, this law underwent revisions numerous times to better accommodate investors.

This law has improved Vietnam’s competitiveness tremendously over the years. In 2006, Vietnam’s global competitiveness ranked at 77. Only 11 years later in 2017, Vietnam ranked at 55 in world competitiveness. Lastly, the Doi Moi reforms aimed at improving human capital in Vietnam and improving the country’s infrastructure.

To improve the human capital of Vietnam, the government decided to prioritize education within the country. Better education is a must for Vietnam due to its ever-growing population. A larger population means more jobs and citizens must receive quality education to perform them. Infrastructure has been vitally important for the growth of Vietnam’s economy as well. Making sure that all citizens have access to internet services is important for a country due to the technological needs of the modern age.

How It Helps

Vietnam improved its economy due largely to the Doi Moi reforms. Today, the economy of Vietnam continues to flourish. In 2020, during the midst of the COVID-19 pandemic, Vietnam’s economy expanded by 2.9%. Compared to other countries at the time, this growth rate was among the highest in the world.

Since 2010, the poverty rate in Vietnam has slowly declined each year. In 2012, the poverty rate was at 40.8%. By 2018, the poverty rate fell almost by 20%, leaving it at 23.1%. As it currently stands, the Vietnamese economy continues to stay strong and grow.

– Jacob E. Lee
Photo: Flickr

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Pro-Democracy Protests in Cuba

Protests in CubaJuly is an especially notable month in Cuban history. Cuba witnessed its largest mass protests in July 1994, when thousands protested due to a major economic crisis that the fall of the Soviet Union brought on. Now, on the weened of July 10, 2021, thousands of Cubans protested in the streets of its major cities due to food shortages, extreme inflation and authoritarian communist rule. The COVID-19 pandemic has only made extreme poverty and repressive government rule worse on the island. Many Cubans at the protests spoke out about starving and having no basic survival resources.

How Age Influences Cubans’ Views on the Communist Government

The recent protests in Cuba are much more complicated than they first appear. According to a man who refused to identify himself in fear of retaliation, younger Cubans tend to vehemently oppose the communist regime due to the lack of food, medicine and electricity. A 17-year-old protester said that the population was protesting because they were hungry and poor. The man noted how there is a lack of resources on the island. Cuban President Miguel Diaz-Canel announced over a nationwide television broadcast that the protests needed to end. He called on the communists to deliver a “revolutionary response” to the destabilization of the island.

In response to Diaz-Canel’s message, older Cubans, in support of the government and the military and police, blocked off young anti-government protesters in their attempt to occupy vital parts of Havana. Pro-government supporters, some armed with wooden clubs, expressed their ties to Cuban patriotism and supported the security officials in quelling the anti-government protests. Pro-government supporters accused the younger protesters of taking a stand against communism by working as paid mercenaries for the United States. The U.S. spends approximately $20 million annually to support “democracy promotion” in Cuba.

How and Why the Protests Happened

Both economic and health crises largely drive the protests in Cuba. The COVID-19 pandemic and economic measures that the communist government took have made many Cubans’ living situations dire. Throughout 2020, Cuba held the pandemic in check, however, recently, virus cases increased rapidly. Cuba reported 6,750 new cases and 31 new deaths on July 11. However, opposition groups note that the true statistics are most likely much worse. Many Cubans have reported that their relatives died at home without receiving the care they needed to have a chance at survival by citing medical negligence.

The Cuban tourism industry has come to a standstill since the beginning of the pandemic, consequently creating a massive hole in the Cuban economy. Hyperinflation, electricity blackouts, food shortages and a lack of everyday necessities are widespread throughout the island. Economic reforms at the start of 2021 increased worker wages while also causing a major spike in prices. Cuban economists, including Pavel Vidal, believe that prices could rise in Cuba by as much as between 500% and 900% within the next few months. Cuban banks additionally stopped accepting cash deposits of U.S. currency. Many economists viewed this as the most severe restriction put on U.S. currency since the rule of Fidel Castro.

Internet access and mobilizing young people through Twitter, Facebook and Instagram were essential in getting the protests started. In 1994, very few Cubans living outside of Havana knew that protests were taking place. Young Cubans have expressed their disdain for the communist regime on social media for years. The Cuban regime has deactivated the internet on the island to stop the unrest.

US Officials’ Response and Cuba’s Future

President Biden called the protests in Cuba a clarion call for freedom and noted that Americans wholeheartedly support Cubans in their fight for freedom. The acting assistant secretary for the state for western hemisphere affairs, Julie Chung, expressed her support in a tweet commending the peaceful protests and Cuban concerns with the multiple crises they face.

Foreign aid to Cuba from the United States and the international community has been minimal in recent years and throughout the islands’ history. This is because the communist leaders would take all of the money and resources for themselves while refusing to distribute them to people in need. The $20 million the U.S. currently spends to support democracy promotion efforts in Cuba is a start. To liberate the Cuban people and end extreme poverty on the island, the United States and the international community need to do whatever they can to help keep the protests going.

– Curtis McGonigle
Photo: Wikipedia Commons