Archive for category: Economy

Information and stories about economy.

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10 Facts About Poverty in Japan

Poverty in Japan
On the surface, Japan seems to successfully avoid the hardships and setbacks that can plague powerful economies. However, Japan actually employs costly efforts to hide its growing economic struggles. Here is some information about poverty in Japan.

10 Facts About Poverty in Japan

  1. Less than one percent of Japan is homeless. As of 2018, Japan has a population of 126.5 million people. According to the latest Ministry of Health, Labor, and Welfare statistics, Japan’s current homelessness figure stands below 5,000. This is a steady decline from nearly 26,000 people without homes in 2003. While this appears to be a remarkable feat of social reform, the truth is that the Japanese government commits millions of dollars every year to ensure homelessness remains low. The goal is to ensure that the Japanese economy appears strong. In reality, poverty in Japan is increasing. The dozens of government reforms Japan enacts each year are extremely costly and are approaching unsustainability.
  2. Japan is “the most equal major society” in terms of wealth distribution. According to the Statista Research Department, a total of 92% of the Japanese population has anywhere from $10,000 to $1 million in either assets or wealth. On paper, these figures appear to demonstrate an extremely healthy economy; however, they hide the fact that poverty in Japan is well over 16%. The notion that 92% of Japanese citizens fall into some category of “wealthy” may be misleading, serving as a straw-man statistic booster.
  3. A rising percentage of individuals in Japan are poverty-stricken. Japan has seen a huge and sudden rise in poverty and poor economic conditions, especially since 2012. According to The Guardian, 3.5 million Japanese children live in poverty-stricken homes. Since 1991, poverty has increased as a systemic problem for Japan, reaching 16.3% this past year. This figure could continue to rise dramatically as the working population decreases.
  4. Japan is in an economic game of “cat and mouse.” Ever since Japan experienced a major increase in retired citizens, poverty in Japan has become a greater issue. As a result, Japan has had to increase the retirement age to 70, shift focus to labor force participation (which breeds unequal disbursement of employment opportunity) and implement expensive government reforms to cope with the declining workforce population and the increasing retired population.
  5. Japan pours a ton of resources into battling unemployment. Poverty in Japan entered an unprecedented era of severity after a major drop in workforce members in 1991. Before 1991, unemployment hovered just below 2% for decades, then rose drastically to nearly 6% by 2002. In fact, this singular event nearly toppled Japan as a world economic leader. Today, Japan has returned to a nearly 2% unemployment rate, although the country has had to pour a huge amount of financial resources in order to accomplish this stabilization. The country still has not fully recovered.
  6. One-third of Japan is retired, and the government does not know what to do. Currently, around a third of Japan’s population is 65 or above. Japan actually has the oldest population in the world. This is partly why Japan has become one of the slowest growing major economies. Aggressive government spending is essential to care for a huge portion of Japan’s population, and the problem is only getting worse as the population continues to age.
  7. Japan suffers from an imbalanced ratio of employed citizens and recipients of social benefits. Much like the United States, Japan’s social benefits system is increasingly problematic. Japan’s “Baby Boom” generation nearly all receive social security. Meanwhile, the section of the economy that pays for social security benefits is not keeping up with financial demands. Japan’s birth rate is likewise falling behind the number of new social benefit recipients. In fact, Japan is expecting to see an unsustainable ratio of ‘recipient to payer’ in social benefit programs by 2025.
  8. Japanese single mothers carry disproportionately heavy financial burdens. In Japanese culture, if a divorce occurs, the mother receives full child custody in nearly 80% of divorce cases. Right now, there is no enforcement of child support programs — meaning that single mothers in Japan may take on 100% of the financial burden of raising children. As a result, thousands of single mothers end up in poor economic standing and have to seek government assistance. Because the subject of single motherhood due to divorce is taboo, thousands of women live without assistance. This leaves many of them in extreme poverty.
  9. Abandoned houses have become a common phenomenon. “Akiya” is a term to define a house that has been vacated or abandoned and remains empty. According to World Habitat, there are currently around 9 million abandoned homes in Japan, with an expected increase of up to 21 million abandoned homes by 2033. This adversely affects poverty in Japan because the government has to repurpose and upkeep vacant houses; this is an enormous financial burden.
  10. Japanese poverty affects women differently than men. Japan has made some remarkable advancements towards equality in the workforce in recent years. About 71% of women are employed, versus the 58% female employment rate a decade ago. Women in Japan also enjoy long and generous parental leaves. However, despite these progressive advances, the female workforce is facing an uncertain future, with prospective poverty rates for older women expected to reach 25% by 2040. With rapidly declining birth rates and increasing retirement rates, current female employment levels will not be able to combat another wave of retirement recipients and the social benefit impacts.

Why This Knowledge is Important

The Japanese economy is the third-largest in the world, and many regard Japan as a global example of economic strength and prosperity. However, the hard reality is that Japan is a struggling country that is finding it harder to support its citizens every year. Without aid, Japan may find itself unable to provide and maintain its population without making drastic sacrifices — which would not only decrease the strength of Japan but also impact the wider global economy.

– Donovan McDonald
Photo: Flickr

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7 Facts About Poverty in Cyprus

Poverty in Cyprus
Cyprus is an island country in the Mediterranean Sea, just south of Turkey, with a population of 1.2 million. The Republic of Cyprus, the country’s only internationally recognized government and part of the European Union, controls 60% of the southern region of the island. The Turkish Republic of Northern Cyprus controls 36% of land in the north region of the island. The division between the North and South republics of Cyprus has created a power struggle of high tension, leaving the island politically unstable. Despite this instability, Cyprus has seen an improvement in decreasing poverty rates, as well as an expanding economy. Here are seven facts about poverty in Cyprus.

7 Facts About Poverty in Cyprus

  1. Cyprus’s economy is growing and expanding. Its tourism sector saw a significant boost in 2018 when more than 4 million travelers visited the island, a 7.8% increase from 2017. This increase in tourism correlates to its increase in GDP per capita, rising from $25,957.85 to $28,341.05 in 2018. Experts expect Cyprus’s GDP per capita to increase even more in 2020, with models estimating a 1.03% increase.
  2. When Cyprus gained independence in 1960, it began transitioning to a service economy. Cyprus’s economy started focusing more on its tourism and service sectors instead of agriculture. This allowed the GDP to rise. As of 2020, Cyprus’s GDP was $34.5 billion, a 3.9% growth since 2019.
  3. Cyprus’s unemployment rate has decreased. With the expansion of Cyprus’s economy came more jobs in the tourism and service sectors. As a result, unemployment rates have decreased. Since 2015, the country has cut its unemployment rate almost in half, from 14.91% in 2015 to 7.92% in 2019.
  4. Education in Cyprus is growing. Today, Cyprus has five private universities and three public ones. Both are rapidly expanding and connecting with other institutions across the globe. These schools continuously put millions of dollars back into the local economy, thus, providing thousands of jobs for the community.
  5. Life expectancy is increasing in Cyprus. As of 2020, the island’s life expectancy is 81.05 years, a 0.19% increase from 2019. Future projections from U.N. data predict a continuous upward trend.
  6. Cyprus does not have a standard minimum wage law for all workers. However, some occupations do have certain wage requirements. These requirements undergo review and revision annually in an effort to be fair to citizens. Since there is no countrywide minimum wage, however, this leaves room for many disparities in poverty and wealth.
  7. The Economic Interdependence Project is a partnership between the Republic of Cyprus and the Turkish Republic of Cyprus Chambers of Commerce. Created in 2009, the project’s goal is to intervene and encourage partnerships between businesses of both parties. The project hopes to reveal the benefits of the two communities working together to improve Cyprus’s economic stability and growth. They have been able to open the first island-wide business directory with more than 200 businesses. Additionally, the project also gave Market Research Grants to some businesses. 

Concluding Thoughts

Despite Cyprus’s political tensions between the southern and northern regions, the country has expanded its economy, increased tourism and implemented programs that encourage business relationships. These factors have allowed for an overall decrease in poverty in Cyprus. Hopefully, this progress will continue in the coming years.

– George Hashemi 
Photo: Wikimedia Commons

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The State of Poverty in Ireland

Poverty in Ireland
Ireland joined the EU in 1973, after which the country enjoyed a period of rapid economic growth between 1995 and 2007. In 2008, however, Ireland suffered a recession. The effect of this recession still echoes through the state of poverty in Ireland.

During their time of prosperity, Ireland’s GDP rose from 69.2 billion in 1995 to 275 billion in 2008. During this period, Ireland’s unemployment also fell from 11.7% to 6.7%. Experts suggest that this rapid economic growth was possible because many tech firms poured into Ireland during the 1990s. Ireland’s favorable tax rate, which was 20% to 50% lower than its neighboring countries, encouraged these tech firms. This constant investment by tech firms, international corporations and development in tourism further contributed to Ireland’s economic growth.

In 2008, the global financial crisis hit. Ireland’s unemployment rate spiked from 4.9% in 2007 to 6.7% in 2008. This employment rate peaked at 15.4% in 2012.

To remedy its economy, Ireland agreed to a $92 billion loan package from the European Union and the IMF in late 2010. In March 2011, the Irish government further committed to meeting the deficit targets with Ireland’s EU-IMF bailout program. Through multiple measures, Ireland became the first country of the European Union to exit the bailout program in 2013.

Lasting Impact of the 2008 Financial Crisis

According to Social Justice Ireland’s 2019 report of poverty in Ireland, 15.7% of Ireland’s population, or 760,000 people, lived below the poverty line. Among this number, 202,000 are children and 111,000 people living in poverty are in employment. Poverty can still be an issue for those individuals who are employed since many of these jobs are low-paying. Some estimates suggest that approximately 23% of Ireland’s full-time workforce worked in these low-paying jobs in 2019.

This is especially concerning since income disparity in Ireland is quite large. Researchers found that the top 10% of households have 24% of total disposable income while the bottom 10% only have 3%. This further contributes to child poverty in Ireland.

Child poverty is also one of the most concerning aspects of poverty in Ireland. In their same 2019 report, SJI estimated that around 23.9% of impoverished people in Ireland are children. This leads to deprivation in material, cultural and social resources that can aid them to develop into a healthy adult. Child poverty has far-reaching consequences on child development, education and future job prospects of those affected.

Combating Poverty in Ireland

The Irish government is taking active measures to combat poverty. For example, a report from the Economic and Social Research Institute found that Ireland’s tax system took most measures to reduce household income inequality among its European peers. In the ESRI report, researchers stated that, through broad-based Universal Social Charge and the early level that the income tax kicks in, the level of inequality in take-home income in Ireland is getting closer to the EU average.

To combat child poverty, the Irish government also devised a national policy in 2014, in which the government aimed to reduce children in poverty by two-thirds by 2020 by supporting families in poverty. Furthermore, the Irish government’s Budget 2020 will increase the Living Alone Allowance and the Qualified Child Payment, which both aim to further assist those on social welfare. The Irish government estimates that the new budget could help 108,000 children to enroll in early childhood care and education programs.

Poverty in Ireland is a remnant of the economic turmoil that the Irish people suffered during 2008. However, as apparent in Ireland’s economic growth after 2013, Ireland has proved its resilience. While income inequality and child homelessness are still an issue, the Irish government is more than cognizant of these problems. Many in Ireland have hope for a better economic future.

–  YongJin Yi
Photo: Flickr

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Tackling Youth Unemployment in Africa

Youth Unemployment in Africa
The growth in the African economy has been steadily increasing overall. However, the vast majority of the increase in jobs is not going to the youth. During a study from 2000 to 2008, only 22% of all employed people were 25 and younger. In 2019, the youth unemployment rose to 11.58% in Sub-Saharan Africa since a dip in 2008.

Youth unemployment rates in Africa are currently at 10.64% and are the lowest they have been in the past 20 years. This improved economy could allow all generations to obtain employment opportunities. Young generations often cannot afford to not work, yet 51% of young women and 43% of young men in Sub-Saharan Africa do not have employment. The young generations in Africa are also becoming more educated with secondary education completion. Many expect that this higher education should rise over 10% in the next 20 years. Despite these statistics, youth unemployment could maintain low rates in the upcoming years.

What is the Digital Economy?

The digital economy is the way that people make money via online platforms, websites, companies and other outlets. The digital economy has transformed in recent years; now, many government services commonly use it and it is one of the main methods to sell products and services around the world. The digital marketplace includes more than just the use of the internet, but other technological tools.

With the invention of the internet and increased technological advances, there have been multitudes of positive impacts on individuals across the globe. There is a tremendous impact on even the most impoverished lives in Africa.

Digital Jobs Africa

Digital Jobs Africa is a project by the Rockefeller Foundation, that people know for its commitment to “promoting the well-being of humanity throughout the world.” One approach organizations are taking to make an impact on the impoverished persons in Africa is by providing support through funding and training for ICT based employment. African impoverished youth have the highest unemployment rates but are in an extremely accessible position. These youth can utilize the opportunities in digital employment to provide substantial support for the communities and families.

Jobs in the informal sector have shown lower wages than formal wages as some have witnessed in Zambia and Ghana. Digital jobs that can be short-term project-based work or a long-term salary position in information technology fields provide significant financial opportunity. Additionally, previously marginalized groups of young workers can step out of the $2-a-day earnings, which is extreme poverty. If technology companies employ African youth, there is potential to halt the continued marginalization of hard-working youth in Africa. The jobs could begin changing the way various industries view youth.

5 Digital Opportunities within the Digital Economy in Africa

  1. Impact Sourcing: Impact sourcing is directly employing those with limited opportunities, i.e. those with high rates of marginalization in the industry.  
  2. Online Work: Online work is another opportunity that can be team-based or individual to complete tasks or projects.
  3. Local Content Innovation: Local content innovation revolves around new technology creation in software engineering, application development, and filling unique local demands for businesses and consumers.
  4. E-Public Goods: E-Public Goods is the idea of using the internet-based application to facilitate higher accessibility and rates of use in government focuses like health, education or agriculture.
  5. E-entrepreneurship: Some are also exploring e-entrepreneurship. These opportunities involve launching a service or product through the training and education that people obtained in IT or technology.

There is vast potential for youth in Africa to gain an education or training in fields of technology. These digital economy opportunities could profoundly impact the unemployment rates in Africa if companies employ African youth.

– Cassiday Moriarity
Photo: Flickr

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The Benefits of Fecovita for Argentine Wineries

Benefits of FecovitaFecovita stands for the Federation of Argentine Viticulture Cooperatives; this group comprises 5,000 winegrowers that makeup 29 cooperatives. This group’s control of the wine market totals at 22 percent, with it owning roughly 30,000 hectares of land as of 2015 and producing over 260 million liters of wine in 2014. There are many benefits of Fecovita throughout Argentina. 

Fairtrade Advantages

The wineries that benefit from Fecovita operate as officially recognized Fairtrade producers. In this case, Fairtrade is an accredited certification company that works to provide a more equitable trade system for farmers and workers across the globe. Only four countries out of the 50 wine-producing countries in the world adopt Fairtrade labeling for their wine products including South Africa, Lebanon, Chile and Argentina.

Fairtrade labeling in Argentina has led to a floor price for grapes, which allows farmers to receive proper wages as well as improvements in farming practices, education and health care. As a result of Fairtrade labeling, workers have also been able to receive eye and dental care, help with nutrition and even community support for schools and health centers. 

Additional Benefits of Fecovita

The wine industry in Argentina has grown to thrive off of the foreign market. The Federation has provided small cooperatives with a seat at the negotiating table with much larger foreign and domestic wineries. As of 2015, Mendoza, a province to the west of Buenos Aires, supplied 70 percent of the world’s Malbec, becoming a massive wine influencer. Although reliance on exporting wine creates a sensitive reaction to the global economy, cooperatives and the contratista (contractor) system have helped to shield workers from this instability.

The contratista system entitles workers to a percentage of total grape sales every year, providing a voice when the meetings occur. Viñasol, an association of small wine companies, has used the extra profits that Fairtrade obtained for computer education for the children of the contract workers and also gave some money to a worker who was constructing a home for his family.  

Additionally, to ensure the production of quality products, Fecovita offers education and technical assistance. Some examples include the purchase of equipment, fertilizers and pesticides for individual members. The Federation also offers to local cooperatives for other necessary equipment, such as netting to prevent hail damage. Further, the cooperatives are able to transport the wine to the bottling facility just outside of Mendoza without cost.

All of these services come at a high cost that the cooperatives would not be able to afford without the support from key investors. Due to these investments, there are profound benefits to Fecovita. 

Altogether, the benefits of Fecovita have provided smaller vineyards and wineries the leverage needed to greatly impact markets and the support required to maintain stability for the businesses and the workers.

– Scott Boyce
Photo: Flickr
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Economic Growth to Reduce Poverty in Russia

Poverty in RussiaThere are almost 21 million poor people in Russia, constituting 14.3 percent of the population according to the Russian Federal State Statistics Service. The Russian poverty rate is comparable to Western countries’ rates. For example, the official poverty rate in the United States is 11.8 percent. However, while the poverty threshold in the U.S. is $12,490 per year, the minimum subsistence level in Russia is $169 per month, which translates to barely $2,000 per year. Luckily, there are some efforts to reduce poverty in Russia.

Poverty in Russia at the End of the 20th Century

After the U.S.S.R. collapsed, Russia faced huge difficulties leading to economic catastrophe. Finally becoming an independent democratic state in the 1990s, Russia began the transition from a command economy to a market economy. A record level of inflation and default took place in that period where people experienced an aggravated recession, ensuring a drop in income. Russian GDP per capita fell about 39 percent in real terms between 1991 and 1998.

Economic decline and political turbulence led to an increase in a criminogenic culture. Criminals in Russia became powerful and rich at the expense of the economy, all while the majority of the population became more and more impoverished. These obstacles formed exceptional economic inequality in the post-soviet state and impacted the increase of poverty in Russia.

Current Regime and the Economy

The economic situation changed dramatically with the power transition in the 21st century. From the beginning of Putin’s presidency in 2000 to the 2008 financial crisis, economic growth indicators reached impressive levels. For example, the average GDP grew by 26 percent on an annual basis. After the 2008 crisis, the economic situation has yet to regain the growth it once experienced.

One key factor of the Russian economy is oil prices, meaning a shift in price can be catastrophic to the nation. Another crucial factor is sanctions from the U.S. and other Western nations; the sanctions have a hefty impact on the poor economy, ultimately increasing poverty in Russia.

Halving the Poverty Rate

Despite the economic growth in the early 2000s, poverty in Russia remains a crucial issue; to combat poverty in Russia the state should take intense actions. In 2018, Putin signed a decree to reduce poverty in Russia by half by 2024. Today, Russian annual economic growth is at 1.5 percent. The current economic growth would indicate that the government would only be able to reduce the poverty rate by 10.7 percent by 2024. To meet the goal by 2024, the Russian government should strengthen the economy to increase annual GDP growth to at least 4.4 percent. The Russian government aimed to achieve this ambitious goal through a stimulus plan worth $400 billion that builds new infrastructure and investments.

Poverty in Russia is still a huge issue for the state and citizens. After the 2008 crisis, the Russian economy faces new challenges like a decrease in oil prices and economic sanctions. To combat poverty in Russia, the country should aim to strengthen its economy and reduce inequality.

– Elizaveta Naguslaeva
Photo: Piqsels

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Economy and Poverty in Greece

Economy and Poverty in Greece
The economy and poverty in Greece are two subjects that connect to one another. Starting in 2010, Greece has been climbing its way out of an economic crisis. The country is slowly paying back billions of dollars in debt due to chronic fiscal mismanagement. In the last decade, poverty in Greece has grown rampant. Incomes have crumbled by more than 30% and more than one-fifth of Greeks are unable to pay rent, electricity and bank loans. Additionally, one-third of families have at least one member who does not have employment. Due to its financial downfall, more than a third of Greece’s 10-million-person population is in poverty. Many citizens doubt that this nation will be able to turn things around fast enough and help those most in need.

5 Facts About the Growth of Poverty in Greece

  1. In 1999, the euro launched in 11 European countries. However, Greece did not meet the fiscal criteria due to its budget deficit and debt-to-GDP ratio.
  2. Greece adopted the euro currency in 2001 but did so by distorting its finances. During that time, Greece’s budget deficit was more than 3%. Additionally, it had a debt level above 100% of its GDP.
  3. In 2004, Greece held the summer Olympics in Athens. This cost the country approximately $12 billion, which it did not have.
  4. The United States suffered through a crisis of its own which triggered a global banking and credit crunch in 2007-2008. As a result, borrowing costs rose around the world, subsequently affecting Greece.
  5. The EU and International Monetary Fund (IMF) granted $146 billion in loans to Greece over the course of three years in 2010. In exchange, Prime Minister Papandreou promised to cut spending and increase taxes.

According to economist and former finance minister of Greece James Galbraith, the last decade will go down in Greek history as a period of asset-stripping, poorly funded health care and education, unemployment, bankruptcies and foreclosures, homelessness and even suicide.

The Good News

While financial devastation has affected Greece and its people, there is some good news. Greece now has more control than ever before when it comes to its economy. For the first time since 2010, Greece can borrow money at standard rates. The hope is that Greece will be able to pay back loans faster and with less burdensome contingencies.

How the United States is Helping Greece

The United States government and its people are attempting to help solve the issues regarding the economy and poverty in Greece. One way that people can help is simply by donating. Foundations such as SOS Children’s Villages works with children, families and communities to prevent family breakdown and ensure that children’s rights are met. Meanwhile, The Hellenic Initiative is an organization that is answering Greeks’ calls by providing a critical safety net to families that the crisis hit the hardest along with their relief partners. By donating to one or both of these organizations, children who have experienced abandonment or became orphans will receive a second chance, vulnerable families will be able to obtain psychological support and Greek hospitals will be better equipped.

Greek Americans who have dual citizenship can also help solve the problem of the economy and poverty in Greece because many can still vote in Greek elections and use their voices to make a difference. As for appointed leaders, Americans can urge their senators and congressmen to continue supporting Greece by exporting defense articles, medical, construction, food processing, specialty agriculture and packaging materials. Another way to show leaders that helping Greece matters is by simply emailing or calling them.

Though it has been a tough decade for Greece and its people, everyone and everything is capable of resilience. It may take a while for the nation to fully recover, but it can get there faster with a little hope from its people and a little help from the United States.

– Stacey Krzych
Photo: Flickr

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The Fight Against Locust Swarms in China

Locust Swarms in China
The beginning of 2020 has definitely been challenging for East Africa and South Asia because sweeping locust swarms struck agricultural production and threatened food security in those areas. China has been suffering from a similar situation, as it loses over 10 million hectares of crops annually from locust swarms. Locust swarms in China have led to it having some expertise in dealing with them, though. In fact, in the nearest decade, China has efficiently lowered the frequency of locust swarms and freed vast acres of land from them. Updated technologies have aided the fight against the locust swarms. Here are some of the hallmarks that make China stand out in the fight against locust swarms.

China’s National Campaign and Societal Engagement

One can trace the modern engagement of prevention and control of the locust swarms in China to land reform in 1950. Before China enacted its government-led afforestation, the local government effectively mobilized farmers to fight the locust swarms with the use of man-powered tools, minimal technology and scientific methods. However, this process clearly expressed that China would not succeed in its fight against locust swarms without massive societal involvement.

Societal engagement seems subtle compared with actual scientific studies about reducing locust swarms. Continuous alerts to the public regarding the seriousness of the locust invasion is the primary form of engagement. The database of the People’s Daily, a Chinese official newspaper, gives at least 270 news headlines mentioning damage or potential risk of the locust swarms in China each year from 1946 to 2019. Public awareness has yet to ease in regards to outbreaks of the locust swarms in China.

Besides the publicity, environmental education opens another gate for nationwide and generationwide involvement. At the state level, the progress of environmental education directly promotes the cultivation of a new generation of professionals who will work in the prevention and control of the locust swarms in the country. At the college level, over 200 universities and 44,000 students prepared to provide support with expertise contributions in 2012.

This nationwide campaign has evolved in the new era. For example, Ant Forest, launched by Ant Financial Service Group, has planted 122 million trees through societal environmental involvement. Ant Forest achieved the massive tree plantation through a 200 million user base and ease of access from users’ smartphones. People who would not touch environmental issues before can involve themselves more easily.

Inter-Agencies Arrangement

In addition to societal involvement, China has also demonstrated a rigid systematic intervention, which should ensure the enforcement and delivery of policies in any local area. The Ministry of Agriculture and Rural Affairs (MoA) is not only in charge of the prevention and control of the locust swarms in China but also has to coordinate with agencies such as the General Administration of Customs. One short answer to such a setup of complex agencies is the need to implement continuously improved strategies against the locust swarms. 

Some researchers have suggested that gaining knowledge about locusts in addition to the implementation of more efficient control techniques would decrease the destruction of locust swarms in China. Another research group found that human activities, such as deforestation and desertification, highly synchronize with the outbreak of the locust swarms in China. Overexploitation of the arable lands and grasslands in Northwest China used to cause the degradation of the land and therefore make them habitable for locusts. Due to such a phenomenon, working with the National Forestry and Grassland Administration (NFGA) is one of MoA’s immediate priorities.

One of the successful examples is the Three-North Shelter Forest Program. Despite the program not specifically aiming to reduce locust swarm damage, the program contributed to the total coverage of forest from less than 17 percent to nearly 23 percent. This increase tightened the space for the reproduction of the locust swarms and blocked the invading path. Other projects in flood control or grazing management also support the prevention of the locust swarms in China.

Conclusion

In short, massive social involvement makes the prevention and control of locust swarms a different game in China. Successful publicity mobilized a vast number of the people and the form of the national campaign injected enough attention to resolving the issue with maximized resources. The younger generation has a better understanding of the issue via intensive environmental education. Also, the environmental concept has deeply penetrated ordinary people’s perception because of the broad coverage of easy access, such as smartphones and online services. 

The benefit of these methods to decrease locust swarms in China is clear. On one hand, individuals have taken on the task of protecting and restoring the environment. On the other hand, this allows China to push new policies in environmental protection more easily, especially when the policy is in conflict with the fundamental way of living for people like farmers and nomads. 

A strong institutional arrangement also backs up the enforcement of the policy. It provides China with alternative tools in disaster management and has ultimately reduced the vulnerability of a sole emergency management strategy. By consolidating the collaboration of multiple systems, China is capable of stepping far beyond the boundary of passive defense to engage issues in advance. Therefore, for the African and other locust suffering countries, the key to the reduction of locust swarms may be in a different direction than relying on technology alone.

– Dingnan Zhang
Photo: Flickr

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Rutger Bregman’s Three Ideas to End Poverty

Rutger Bregman's Three Ideas to End Poverty
In the best-selling book, “Utopia for Realists,” author and Dutch popular historian, Rutger Bregman, outlines three utopian ideas to eliminate extreme poverty. Universal basic income, a 15-hour work-week and open borders are Bregman’s three leading solutions to creating an ideal global society. Bregman’s writings, interviews and fiery speeches, like the one he gave at the Davos World Economic Forum in 2019, reminds one of the importance of utopian thinking. Here is a breakdown of Rutger Bregman’s three ideas to end poverty.

Universal Basic Income

A universal basic income (UBI) is the first of Rutger Bregman’s three ideas to end poverty. UBI is an unconditional cash transfer that countries can give to citizens; the concept involves the allocation of a certain amount of funds regularly to cover essential living costs. Recipients of the grant are free to spend it however they choose. The idea has found support from a wide range of credible thinkers, including Dr. Martin Luther King Jr., economist Milton Friedman and Facebook co-founder Chris Hughes.

The longest-running UBI experiment is currently happening in Kenya. The charity GiveDirectly is paying more than 20,000 people roughly 75 cents per day. Less than $1 may not seem like a lot, but that amount is roughly what Kenya’s poorest make daily. Money from the nonprofit essentially doubles recipients’ annual incomes. GiveDirectly’s trial began back in 2016 and should span over 12 years. So far, the results have shown a positive impact. By using a cellphone-based payment system, the nonprofit has increased food consumption by 20 percent, reduced the number of days a child goes without food by 42 percent and increased revenue from livestock and small business by 48 percent.

Additionally, UBI might be around the corner for the United States. As the coronavirus health crisis unfolds, the U.S. government is moving quickly to jump-start the nation’s economy. In a rare bipartisan effort, Republicans and Democrats have signed a colossal $2 trillion stimulus plan which will include direct cash payments to American citizens. The Senate aims to send one or two cash transfers to American adults for $1,200, and an additional $500 for children. It is the most extensive emergency stimulus package in American history.

15-hour Work Week

In “Utopia for Realists,” Bregman reminds his readers that at one time the idea of a 15-hour work-week was not as inconceivable as it may sound today. In 1930, British economist John Maynard Keynes predicted that a 15-hour work-week would be inevitable by 2030. He believed that society’s real problem would be dealing with boredom from all the spare time. Alas, his prediction did not come true. In fact, the opposite is true in some cases, and people are working more hours than they did in previous generations.

In a world where time is money, it is hard to imagine the practicality of working less to earn more. However, Bregman insists that “productivity and long work hours do not go hand in hand.” Over time, fatigue and stress are causing burn-out in workers all over the world. The problem is so severe in Japanese corporate culture that it has a name for it, Karoshi, meaning death caused by overwork. There comes a point when working more becomes less productive.

Americans, on average, are clocking in 137 more hours than Japanese workers every year with 52.3 percent of people report being unhappy at work. Although average productivity has gone up 400 percent since 1950, real wages (adjusted for inflation) have remained stagnant. People are working more than they did 70 years ago and are not seeing the difference in payment.

But does working less pay more? A New Zealand based estate planning company, Perpetual Guardian, believes so. The staff experimented with working four days a week and have dubbed it a massive success. A survey from before the experiment determined that only 54 percent of employees felt they were able to manage a work-life balance. After implementing a four-day work-week, 78 percent felt they could. Employee stress levels dropped 7 percent and team engagement rose 20 percent. This idea of Rutger Bregman’s three ideas to end poverty would allow greater pay with shorter hours.

Open Borders

Open borders may be the most radical solution of Rutger Bregman’s three ideas to end poverty. Opening up the world’s borders to allow the free movement of people across any country makes many skeptical and afraid of societal collapse.

Development economist Michael Clemens argues that open borders would double global GDP by allowing the free movement of labor to become more productive. Clemens also dissuades fears of job loss and culture degradation pointing to the U.S. Chinese immigration ban that was in place from 1882-1965, and how after the ban lifted, none of the predictions became true.

Economist Bryan Caplan argues that nation-dividing borders more often act as a form of global apartheid. The level of economic inequality one experiences generally depends upon which country they were born in. Rutger Bregman states that 60 percent of someone’s income depends simply on their country of origin. With the enforcement of stricter border policies all over the world, poor people have little to no say in where they can live.

Rutger Bregman’s three ideas to end poverty are bold and unorthodox, however, some are conducting studies around the globe to determine their viability. Bregman’s ideas are utopian, and that is the point. Ending slavery, improving women’s rights and adopting a 40-hour work-week were once utopian ideas too. “Utopia for Realists “argues that it is essential to dream big, to create a better society for everyone.

– Henry Schrandt
Photo: Flickr

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Democracy in Ghana: An Evolution of Freedom and Stability

Democracy in GhanaGhana, formerly known as the Gold Coast, was Sub-Saharan Africa’s first nation to declare the end of British colonial rule. Kwame Nkrumah led the country into independence in 1957. The newly formed country became a catalyst for independence movements across the continent. Ghana was seen as a stronghold for a well-functioning democracy that few other nations have established since garnering their independence. Since holding its first elections in 1992 under Jerry Rawlings, democracy in Ghana has had a strong influence on the standard of living in the country and on its political and economic institutions.

Country Profile: Then and Now

When Jerry Rawlings won the 1992 election with the National Democratic Congress, it the beginning of a road to change in Ghana. A referendum pushing for a new constitution passed in April of 1992 that allowed for the reintroduction of a multiparty system. The first democratic elections were representative of the future development the country would undergo in the coming years. Previously, the nation underwent a series of military-led coups that ultimately undermined efforts to create a unified nation after independence. Ghana struggled, as most countries have, after the throws of colonial rule and the quick, jarring shift from little independence to that in full.

Under Jerry Rawlings and his Provisional National Defense Council (PNDC), Ghana created “a structural adjustments economic reform” in 1983 that carried them into a new democratic regime and greatly affected the economic development of the country. Empirical data concerning factors such as GDP, life expectancy and primary school enrollment rates can give valuable opportunities for analysis of the upward trajectory that Ghana experienced after 1992.

In 2018, Ghana’s GDP was $65.56 billion while, in 1992, it was almost 10 times lower at $6.4 billion. Life expectancy has risen from 57.4 years to more than 63. The infant mortality rate, a common indicator of development and the degree of public service provisions in developing countries, has dropped drastically from 75.6 percent to 35 percent. Furthermore, primary school enrollment has undergone a 24 percent increase.

Influence of Democracy

When Jerry Rawlings ended his two terms as president in 2000, the handover of government to John Kufuor was peaceful and without incident. In the 2008 election between former Foreign Minister Nana Addo Dankwa Akufo-Addo and former Vice-President John Atta-Mills, the Electoral Commission did as they had done for previous elections and invited foreign observers to oversee the production of the election. Again, the transition was smooth and transparent.

Advancements in democracy in Ghana are due, in part, to the fact that it puts politicians in a position to appeal to the needs of their constituents. The 1992 election is a prime example of this. The PNDC became popular with rural Ghanaians because of its role in the allocation of government funds to development projects in rural areas that were headed by local District Assemblies. The rural sector represents a large majority of Ghanaians, a majority that previous administrations had long since neglected.

The representation of all Ghanaians strikes at the core of the importance of providing democratic practices to transfer power to those who have traditionally and historically had none. Political incentives for leaders to invest in the needs of their people allow for the decentralization of economic power so citizens can keep their governmental institutions accountable.

Enhancing the Lives of Ghana’s Citizens

Democracy in Ghana has provided more than a baseline of free and fair elections. The day to day aspects of people’s lives change when they are accurately represented in their leadership. According to a transformation index set by a project by Bertelsmann Stiftung, which aims to understand the transition from authoritarianism to democracy in various countries, Ghana stands at 32 in a list of 129.

Indicators are measured on a scale from 1-10 and demonstrate the degree to which the country has made advancements in their transformation to inclusive institutions. Political participation and the stability of their democratic institutions are 8.5. International cooperation comes in at 8.3 while political and social integration is 7.8. These measurements provide evidence that democracy in Ghana has extended beyond promises on paper to protect civil liberties and the wellbeing of its citizens.

Perhaps the most important change that has come out of Ghana’s transition to democracy is the shift in reality for the millions of citizens who depend on their governmental institutions to provide inclusion and transparency. The implications of democracy run through their daily lives, specifically through increased attention by their leaders to the protection of human rights, civil liberties and the provision of public services. Democracy in Ghana has granted opportunities for representation and participation. Ghana’s economic, societal and political future beam with promise as the nation continues to make its way as an example of democratic rule in a developing country.

– Jessica Ball
Photo: Flickr