Archive for category: Economy

Information and stories about economy.

The African Continental Free Trade Agreement

The African Continental Free Trade Agreement The African Continental Free Trade Agreement is the largest free-trade agreement in the world with a 1.2 billion-person market and a combined GDP of 2.5 trillion dollars. It was signed in March of 2018 by 44 African heads of state, and following the initial signing, 5 more countries joined in July for a total of 49. The African Continental Free Trade Agreement’s primary focus is to increase intra-African trade by promoting free movement of goods and tariff-free trade. In fact, for the countries that joined, tariffs are expected to decrease by 90 percent within 5 years.

According to an article by The Economist, roughly 82 percent of African goods are exported to other countries. Due to high transport costs, poor infrastructure (e.g. in West Africa, less than one-fifth of the roads are paved) and time-consuming border procedures, it is more costly to trade within Africa than to export to foreign countries.

With the new free-trade agreement, a more competitive market will emerge that will reduce costs for consumers. Additionally, producers will have access to a larger number of potential buyers, as well as more investment opportunities from foreign countries. Strengthening intercontinental trade has the potential to protect the countries in Africa from the impact of exogenous trade shocks.

Maximizing the Impacts of AfCFTA

In order to reap the highest benefits from the new intra-continental free trade agreement, it is imperative to make adjustments to Africa’s trade structure. However, trade facilitation is not an easy task. It involves coordination between countries, transparency in policies and easing the movement of goods. Currently, intra-African trade accounts for only 16 percent of Africa’s total exports, while the bulk of its exports are to Europe (38 percent), China (19 percent), and the U.S. (15 percent). With the implementation of the African Continental Free Trade Agreement, The United Nations Economic Commission for Africa estimates that intra-African trade will see a 52 percent increase by 2022.

Infrastructure Development

Reducing non-tariff barriers, like transport time for goods, is an essential component of solidifying the new free-trade agreement. According to the International Monetary Fund, the average cost of importing a container in Africa is about $2,492, which is significantly more expensive than the cost of exporting to another continent. This helps to explain Africa’s high incentive to export the majority of its goods.

In order to aid with the implementation of infrastructure projects, the New Partnership for African Development (NEPAD) has facilitated two main systems of information. The African Infrastructure Database (AID) concerns itself mainly with data management and stores information about ongoing infrastructure development projects including the location as well as relevant financial and economic information. The Virtual PIDA Information Centre contains regional and continental infrastructure projects and promotes investment opportunities.

Clearly, higher access to information regarding infrastructure projects can help countries organize themselves around infrastructure development efficiently. This will help to reduce the intra-African costs of trade by fostering more easily navigable and cheaper transport routes between countries.

Economic Integration

It is crucial to consider that the informal trade sector contributes to a large amount of overall trade in Africa. The Africa Economic Brief is a document published by Jean-Guy Afrika and Gerald Ajumbo that discusses the specifics of informal trade in Africa. It states that the informal cross border trade sector (ICBT) represents 30-40 percent of total intra-African trade. In West and Central Africa, women make up almost 60 percent of informal traders, and 70 percent in Southern Africa.

Problems that affect the formal sector, like infrastructure and trade, have a disproportionate effect on the informal sector—especially for marginalized groups such as women and youth. It is unclear how the African Continental Free Trade Agreement will affect these groups as trade is adjusted; however, an increased focus on local trade and easier trade routes will likely facilitate trade for everyone involved. Since informal trade struggles with the same main issues as formal trade, making trade more accessible in the formal sector can create positive spillovers.

The informal trade sector is an important one to protect. Big businesses often avoid trading with rural areas due to high transportation costs, so instead these areas rely on informal trade for food, clothing and other commodities. Furthermore, ICBT provides a vital source of income to individuals who are often low-income or low-skilled. According to the Africa Economic Brief, studies estimate the average value of informal cross border trade to be 17.6 billion dollars per year in the Southern African Development Community (SADC).

In order to provide support for informal traders in Eastern and Southern Africa, the United Nations is funding a project to help decrease gender-specific obstacles in Malawi, Tanzania and Zambia. A focus on female empowerment will help maintain and improve the informal trade sector and contribute to poverty reduction.

With support from various organizations, countries in Africa are taking defining steps to reduce taxes, transport times, and an increase in market competition. Signing the African Continental Free Trade Agreement opens Africa up to free trade and, if facilitated effectively, it will have enormous positive implications for Africa’s economy.

– Tera Hofmann
Photo: Flickr

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Top 10 Facts About Living Conditions in San Marino

Living Conditions in San Marino
In the northeastern part of the Italian Peninsula lies San Marino, one of the world’s tiny micro states surrounded entirely by the country of Italy. Its modern form has shaped since 1463 and the country has maintained its autonomy until today. In fact, it is the world’s oldest republic. Here are the top 10 facts about living conditions in San Marino.

Top 10 Facts About Living Conditions in San Marino

  1. Population: As of 2019, there are 33,683 people living in San Marino. It has the fifth smallest population on Earth. Roughly 15 percent of the population are migrants and 53 percent are individuals within the working ages of 18 to 65. The nation’s official language is Italian. The poverty rate of the country is very low, so the country does not officially measure it.
  2. Education: Education is compulsory until the age of 14 and attendance is free. Almost the entire population has completed secondary school as the country has a 91 percent completion rate. Over 10 percent of government spending goes towards education. Citizens of San Marino mostly pursue college degrees in surrounding Italy or abroad.
  3. Economy:  Economic output relies heavily on finance and manufacturing. The banking sector accounts for more than half of the country’s GDP at roughly 60 percent. Corporate taxes are low in comparison to the EU and the standard of living is high.
  4. Health Care: Life expectancy in San Marino is 83.4 years old. Health care is not free, but a universal system exists parallel to a private system.  The Azienda Sanitaria Locale insurance fund provides the government system. There are six physicians for every 1,000 inhabitants as of 2014. Child mortality is extremely low with only one death in 2018.
  5. Government System: San Marino has nine municipalities and the country is a parliamentary, representative, democratic republic. The legislation is within two chambers and there are two captain regents as heads of state. The country directs foreign policy mostly towards aligning with the EU. Therefore foreign aid policy is similar to that in the European Union.
  6. Social Security: There is social insurance for the elderly and the disabled. Furthermore, there are survivorship benefits for the unemployed and the widowed even though the unemployment rate has reduced in the past years.
  7. Communications: As access to information can make a big difference in human development, an important aspect of the top 10 facts about living conditions in San Marino is the country’s access to this right. Its living standards reflect this. More than half of the population are active internet users and broadband is widely available. There are 38,000 cellphone subscriptions active today which is more than the entire population.
  8. Labor Conditions: The law forbids workplace discrimination for any reason. The state guarantees contracts and the minimum wage is 9.74 euros per hour. In general, labor conditions are safe with an eight-hour working day in guaranteed humane conditions. Meanwhile, as of 2018, the unemployment rate was only eight percent.
  9. NGOs in San Marino: There are no specific NGO projects in San Marino, but a number of NGOs do exist from time to time specially aiding in education and training as well as health. For instance, the British organization, Hope is Kindled, was present in 2006 with a project to advance health through medical and technological research.
  10. The Serene Republic: As a small enclave, San Marino does not have large natural reserves within its territory. Nonetheless, it shares the geography of surrounding Italy which is slightly mountainous and mild. It imports most of its resources and food. To be able to keep its stable political and social system while being dependant on other countries, it must be in good terms with its neighbors and the international community.

These top 10 facts about living conditions in San Marino demonstrate why this small nation has been able to maintain such serenity for more than six centuries. As a result, it has been able to ensure its citizen’s freedom and security in all aspects.

– Diego Vallejo Riofrio
Photo: Flickr

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Reducing Poverty Through Farming in Africa

Reducing Poverty
Africa has a long and complicated history. From the Portuguese exploration of the continent in 1460 to the Atlantic slave trade and modern-day ethnic conflicts in Sudan, it is, unfortunately, no surprise that the continent has long-standing issues with poverty. Ethiopia and Ghana are changing this trend. New, innovative farming techniques such as flexible growing practices and government-sponsored programs are reducing poverty, and famine rates have been declining in these countries. Worldwide organizations such as Africa Renewal are hoping that the agricultural reforms taking place in Ghana and Ethiopia can spread throughout the rest of Africa to reduce poverty.

While the mining industry is important for African countries such as South Africa, agriculture is by far the most important economic sector for a majority of African countries. Not only does agriculture provide jobs for residents, but it also acts as the main food source for over 1.2 billion Africans.

Farming in Ethiopia

Ethiopia has relied on ox-driven plows for centuries. Ethiopian farmers are primarily field farmers, which means they grow their crops on typical farmland rather than other alternatives such as in water-soaked rice patties. Ethiopia has dealt with severe famine over the past several decades, and farmers have helped alleviate famine by being flexible. Over the past century, Ethiopian farmers have shifted their main food source from enset to tef-based crops. Another change Ethiopian farmers are adopting is more flexible growing practices, which means rather than growing one crop at a time, farmers are beginning to grow as many as 10 different crops at once. Flexible growing practices add diversity to the food supply and help fight against weeds and pests, leading to increased food supplies, ultimately reducing poverty.

Ethiopia’s government launched the Growth & Transformation Plan II in 2015 that aims to significantly increase economic growth by investing heavily in sustainable and broad-based agricultural practices and manufacturing sectors. The end result of this initiative is for the world stage to recognize Ethiopia on the world stage as a lower middle-income country by 2025. While no one will know the full results of this initiative until 2025, the preliminary data shows that the program has been helping with Ethiopia’s GDP increasing from $64.46 billion in 2015 to $84.36 billion in 2018.

These new farming practices, along with government investment into agricultural practices, increased Ethiopia’s GDP by nearly 10.3 percent over the past decade, which is one of the fastest growth rates in Africa. The new agricultural practices that are stimulating the economy are a significant reason why Ethiopia’s poverty rate has also fallen from nearly 40 percent in 2004 to approximately 27 percent in 2016.

Farming in Ghana

Like Ethiopia, Ghana also has a history of poverty, with 24.2 percent of all residents facing poverty as of 2013. Ghana’s approach to reducing poverty is unique because the country is using economic growth. While Ethiopia is also focusing on economic growth, Ghana is not utilizing new farming practices in order to achieve economic growth. Rather, Ghana is using increased GDP to revitalize its agricultural sector.

Ghana’s unemployment rate is 6.71 percent as of 2018. With many residents unemployed, the agricultural sector provides job opportunities. Approximately 40 percent of Ghana’s available agricultural land is still available for use, which means there are many opportunities for agricultural expansion. Today estimates determine that the agricultural sector employs 33.86 percent of all Ghanian workers, meaning agriculture is the country’s main source of income for a third of its residents. Alarmingly, though, agriculture makes up only 19.7 percent of Ghana’s GDP as of 2017, which is the lowest total since 1983, when agriculture made up approximately 60 percent of the total GDP.

World Vision, a non-governmental organization, has worked in Ghana since 1979. Currently, World Vision implements 29 area programs. One such project is the Purdue Improved Cowpea Storage Project that provides instruction to farmers on how to store cowpea without chemicals. Storing cowpea without chemicals helps reduce post-harvest losses and maintain cowpea’s nutritional value.

With vast amounts of land still available and with the GDP increasing by 6.7 percent in the first quarter of 2019, the unemployment rate will decline significantly as more residents head to the fields and plant crops. Agriculture’s share of the GDP will also rise, reducing the downward trend since 1983, and ultimately, put more money into resident’s pockets.

Reducing Poverty

Ethiopia and Ghana have made gains in their plans to reduce poverty among their citizens. Poverty in Ethiopia has fallen from 71.1 percent in 1995 to 27.3 percent in 2015, and Ghana’s poverty rate has fallen from 52.6 percent in 1991 to 21.4 percent in 2012. While these countries are making improvements, there is still a lot of work remaining before all of Africa’s citizens are free from poverty.

– Kyle Arendas
Photo: Flickr

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How Wealth Inequality and Poverty Connect

Wealth Inequality and Poverty
Wealth inequality is an issue that plagues many developing nations, causing a widening distance between the wealthy and the poor in those nations. When a country distributes income among its people in an unequal manner, even a country with a growing economy can advance slower. Impoverished people are often unable to improve their situation due to the number of barriers they face, and some people may even be more prone to falling below the poverty line when a country’s economy advances without them. Here are examples of how severe wealth inequality contributes to poverty and how these issues can be corrected.

The Challenges of Inequality

The country the United Nations Development Program (UNDP) lists as having the highest wealth inequality is South Africa, according to its GINI index of 63 percent (a measure of inequality, with zero percent representing perfect equality and 100 percent being maximum inequality). Though South Africa has a high GDP compared to the world average, it still has a large number of people below the poverty line. In 2014, 18.9 percent of the population was living on less than $1.90 per day. In many cases, the poorest workers in South Africa are living on wages of $50 per month. Many of these issues are due to the country’s history of apartheid, which entrenched economic differences between different groups of people. Though South Africa removed that system 25 years ago, its legacy still impacts the country today.

Brazil is another country where wealth inequality contributes to poverty in a significant capacity. Despite others earmarking the country as one quickly moving towards becoming a developed nation, 10 percent of the population still lives in extreme poverty. Though the country’s economic growth is significant, 61 percent of that growth from 2001 to 2015 has gone directly to the richest 10 percent of the country. This means that the majority of Brazil’s population has only seen 39 percent of all of its economic progress.

This inequality contributes significantly to the problem of poverty and prevents the poorest of the country from improving. Progress in Brazil on this issue with regards to specific groups of people is slow. By current projections, women in Brazil will not close the wage gap until 2047. As for black Brazilians, estimates determine that they will not earn as much as white Brazilians until 2089 by the current rate.

What Can Countries Do?

One should note that while wealth inequality contributes to poverty, the exact causes behind wealth inequality can vary greatly and come about as a result of many different social, political and economic factors. South Africa’s inequality as a result of historical institutions may be an issue more difficult to tackle. According to experts, however, a good start would be to offer more opportunities to those who those institutions have systematically excluded.

In Brazil, access to education remains seriously dependent on one’s family income. As a result, the majority of Brazilian adults have no secondary education. Expanding access to more education opportunities may be key to alleviating income inequality and poverty in Brazil.

Inequality is a serious issue in countries like South Africa and Brazil, and the issues that connect with it contribute to poverty’s continued existence and expansion. According to a study published by members of the U.N., there is a strong link between income inequality and poverty. In order to reduce poverty, it follows that countries must also correct inequality. With more legislation and NGOs assisting individuals severely disadvantaged by income inequality, ending poverty seems a lot more accomplishable.

– Jade Follette
Photo: Flickr

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How Mall for Africa Boosts Economic Prosperity

Mall for Africa Boosts Prosperity
Mall for Africa boosts prosperity by allowing African consumers to purchase items from retailers located in the United States and the United Kingdom. The company’s innovation offers a secure and easy way for African citizens to purchase items online.

The Foundation of Mall for Africa

Chris Folayan, a Nigerian citizen and the founder and CEO of Mall for Africa, opened Mall for Africa in 2016. Foloyan founded this organization in Nigeria because this nation is the most affluent and high-powered country in Africa. Folayan has plans for Mall for Africa to expand in several other African nations as well, such as Ghana and Kenya.

The primary objective of Mall for Africa is for customers to purchase items from the U.S. and the U.K. and to market their own goods effectively in the absence of fraud and theft. Companies transport their products to the United States and United Kingdom infrastructures. Africa then receives the items.

In 2018, Mall for Africa began coordinating with the United States Overseas Private Investment Corporation (OPIC) in order to construct facilities in 15 of Africa’s nations. The purpose of this was to reduce shipping costs from international companies and allow for secure payment methods with provincial dollars.

Africans who make purchases online often pay high-cost fees for shipping items. To counter this, Mall for Africa opened storehouses in Portland, Oregon and London to reduce transportation costs. Furthermore, customers are able to purchase items using their own currency through new payment options.

Market Advantages

Mall for Africa boosts prosperity in Africa because of the availability of supplies and materials that generate employment opportunities, improve schooling and new forms of medical treatment. In particular, one entrepreneur purchased a sewing machine which enabled her to begin her own sewing operation. Educational institutions have benefited from Mall for Africa by having the ability to purchase necessary academic materials. These materials include items such as computers and books.

The medical field has benefited from the ability to obtain medical equipment. This gives doctors the ability to effectively pronounce medical conditions and offer treatment options.

Mall for Africa has helped create jobs for Nigerian residents. For instance, more than 60 citizens work full-time. Some expect the number of workers to increase with the implementation of new infrastructures in other African countries.

Since the company first launched, Mall for Africa has boosted prosperity in terms of profit. In fact, it has produced millions of dollars in yearly profits. An expansion of profits should happen due to the implementation of this business in other African nations. In 2019, Nigeria and Kenya are expecting to see a large increase in sales due to the development of various enterprises and the expansion of the working class earning more pay.

eBay’s Collaboration with Mall for Africa

While Africans are able to purchase products overseas as of 2017, Americans now have the ability to purchase original artifacts from Africa through the Mall for Africa application on eBay. Residents in some countries have the ability to sell their artifacts through eBay and market these products to U.S. consumers. Some of these countries include Nigeria, Kenya, Ghana, South Africa and Burundi. The commodities will be available through the Mall for Africa application on eBay, which enables entrepreneurs to expand brand awareness and increase economic prosperity in Africa.

The primary groupings of products are fashion, antiques and jewelry. Mall for Africa will likely include other groupings in the future with the addition of other African countries selling their products.

Mall for Africa’s shipping co-partner, DHL, handles the transportation of all packages. The merchant packages their items then delivers the package to the closest DHL shipping facility. In February 2017, DHL reported a substantial rise in international sales. The company predicts that by 2020 the online market will progress at a rate of 25 percent annually. That is close to double the volume of sales achieved nationally.

While this partnership is expected to expand inventory to the United States, there will also be opportunities for economic advancement for Africans who now have the option of selling their products internationally. Overall, Mall for Africa boosts prosperity for the African continent.

– Diana Dopheide
Photo: Flickr

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Why Ethical Impact Investing Is Beneficial

ethical impact investingOne of the benefits of living in a developed nation with a strong economy is investing and making money off the success of the market. Traditional investing holds profits above all else, and generally shun factors such as environmental impact and workplace equality. Ethical impact investing tries to marry consciousness investing with profit to help both investors and companies active in creating a better world reach greater success.

According to the Global Impact Investing Network (GIIN), impact investing consists of “investments made with the intention to generate positive, measurable social and environmental impact alongside a finical return.” Examples of ways that companies can qualify for impacting investing include: reducing their carbon footprint, installing green energy and creating a more diversified board of directors and executive suit. In terms of viability, the GIIN reports that impact investing portfolios “overwhelmingly meet or exceed investors expectations for both social and environmental impact and financial return.”  Ethical impact investing portfolios do not sacrifice profits for impact or the other way around, they are the best of both worlds.

Who Does Impact Investing?

Many firms including the biggest in the world operate some form of impact investing. Blackrock calls their form of impact investing, “sustainable investing” and focuses on “investing in progress and pioneering.” Blackrock runs funds which are made up of multiple companies which meet a certain criterion. For example, Blackrock’s “02 SDG [sustainable development goals] fund” is made up of companies which help to “advance the U.N.’s sustainable development goals.”

Companies in this fund include: Tesla INC, Procter and Gamble Vesta Wind Systems and New Oriental Education and Technology. Blackrock’s funds are incredibly diverse with the highest percentage weight in the 02 SDG Fund making up only 4.72 percent of the weight. Having a diverse fund helps the fund stay stable in case any of the companies or markets crash.  And the proof is in the numbers — with the Blackrock fund outperforming the market. According to Investopedia, the average return of the U.S. market on average is 8 percent while the average return of Blackrock’s 02 SDG Fund is 9.3 percent.

Goldman Sachs also works towards ethical impact investing, but through a geographical lens which seeks to relive certain communities of specific ills. For instance, Goldman Sachs reports that it “invested over $300 million in the City of New Orleans [with an] integrated, place-based approach [which] has provided more than 1,450 units of…housing [and] over 1,300 new jobs.”

Goldman Sachs post-2008 has helped to create housing and jobs for an area ravaged by natural disaster. One of the projects that Goldman Sachs operated in New Orleans was the Harmony Oaks Apartments which Goldman Sachs poured “$61.2 million in financing to support the rebuilding effort [post Katrina].” Rather than having citizens invest in a fund, Goldman has corporations and projects apply for a grant which they can then be approved or denied for.

The Bottom Line

In terms of accessibility to the average investor, Goldman Sachs falls behind Blackrock’s fund management. Blackrock also includes companies from around the globe in their sustainable investing funds, while Goldman Sachs only offers impact investing related grants in the U.S. Blackrock also runs two other sustainable investment funds with one centered on low-cost sustainability, “01 ESGU” fund and one focused on reducing carbon footprint, “03 CRBN” fund. For investors who want to see a direct correlation with their profits and their impact, investing in Blackrock sustainability funds offers an effective, profitable alternative to traditional investing strategies.

– Spencer Julian
Photo: Flickr

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8 Shocking Facts About Fidel Castro

10 Shocking Facts About Fidel Castro

As the political leader of Cuba from 1959 to 2008,  Fidel Castro, nicknamed El Comandante, was the “face of left-wing totalitarianism”. Though Castro’s educational reforms significantly improved the system of education in Cuba, they often came at the hand of communist policies that left its citizens impoverished as well. While most of Castro’s reforms proved harmful, a few paved the way for advances in Cuban health and education. Here are eight shocking facts about Fidel Castro.

8 Shocking Facts about Fidel Castro

  1. Castro eradicated Cuban illiteracy. Through the implementation of the Cuba Literacy Campaign of 1961, Cuba met the Millennium Development Goals set forth by the United Nations and the country’s literacy rate rose from 60 to 100 percent. In one day, the program opened 10,000 classrooms, guaranteeing education for all Cuban citizens. Overall, more than 700,000 Cubans became literate in just one year. Castro’s relentless fight for universal education brought the issue to the forefront of Cuban challenges and successfully improved literacy among its people.
  2. Castro established Cuba’s universal health care system. By nationalizing Cuban health care, Castro’s policies not only expanded public health care but improved it. With the establishment of the Rural Medical Service and the Declaration of Alma-Ata, Castro brought medical services to rural locations, opened family clinics and made free medical care accessible for all. Cuba’s health care successes also include completely blocking the transfer of HIV and syphilis from mother to child and providing the first vaccine for meningitis B, which is still the only available vaccine for the disease today. Castro not only provided health care for the Cuban people by improving prevention, equal coverage and access but his policies also advanced the quality of care as well.
  3. Castro punished those who thought differently than himself. By jailing political opponents and closing down newspapers with alternative political perspectives, those who thought differently than Castro were not safe during his reign. The native-born Cuban leader limited his citizens’ free speech and punished those who valued their voice more than their safety. Castro did not limit his punishments to speech; he also legalized physically abusive tactics on politically divergent individuals. Those who questioned or criticized the way Castro ran his government were often imprisoned, denied access to medical care, suffered beatings and entered solitary confinement. In 2003, Castro executed his methods on a larger scale when 75 people, human rights activists, journalists and trade unionists, received his abusive tactics following their outspoken criticism of the Cuban government.
  4. Castro limited economic freedom. Life under Castro’s rule was economically suffocating. With the creation of The First Agrarian Reform in 1959, Castro intended to improve the economy by redistributing land among the classes. The law, however, was more prohibitive than inclusive. It placed limits on the amount of land individuals could own, abolished private business and nationalized foreign land ownership. With The Second Agrarian Reform of 1963, these limits only became more restrictive. The new law gave Cuba ownership over two-thirds of national farmland, and by 1998, the country owned 82 percent of it. With such limited freedom over their own economic choices, hundreds of thousands of middle-class Cubans fled their homes for a better life in the U.S.
  5. Castro plunged Cuba into an economic downfall. During his rule, Castro made sugar Cuba’s main source of income. The growing of Cuban sugarcane relied on imports of fertilizers, pesticides and technology from the Soviet Union. So when the USSR fell in 1989, Cuba was no longer able to produce its main source of income, and its economy consequently collapsed. As a result, the country’s GDP fell by 35 percent, which propelled Cuba into a time of economic struggle known as the Special Period. Marked by food and housing shortages, increased unemployment and reduced public services, Castro’s economic decisions resulted in the impoverishment of his own people.
  6. Castro did not let human rights organizations enter Cuba. Castro treated many people inhumanely and he refused human rights organizations entry into the country. Without access to the country, organizations, such as the International Committee of the Red Cross, were unable to work toward improving the harsh realities of the Cuban people and inhumane practices went on without consequence.
  7. Castro refused to hold elections while in office. Castro remained in power for almost five decades and this was partly due to his refusal to leave power. Nobody was legally able to run against Castro unless they shared his political perspective because he placed a ban on multiparty elections after self-proclaiming himself a socialist. This meant that he was able to enforce his inhumane policies for decades and the economic strain was long-lasting.
  8. The Cuban government still uses Castro’s abusive methods. Abusive tactics introduced during Castro’s reign, such as arbitrary arrest and detention, beating, acts of repudiation and government surveillance, are still used in Cuba today according to the Human Rights Watch. While Raul Castro, Castro’s brother and Cuba’s current leader, has hinted towards reconsidering the country’s abusive methods, he has taken no real action, and the country’s citizens continue to suffer abuse. For example, in 2016, the arrests of 9,940 Cuban citizens led to harassments, beatings and the subjection to acts of repudiation.

These eight shocking facts about Fidel Castro cannot encapsulate 49 years of supremacy, though they can provide a glimpse into Cuban life under his rule. While Castro passed away in 2016, his death cannot erase the influence his policies had on Cuba. However, organizations, such as CARE and the Foundation for Human Rights in Cuba (FHRC) are implementing programs to increase living conditions in Cuba.

Organizations Working to Rebuild Castro’s Cuba

CARE, an organization that began working in Cuba during the Special Period, is doing great work to reinstate the food security Cuba lost during the fall of the Soviet Union. With projects such as the Strengthening Dairy Value Chain Project (SDVC) and the Co-Innovation Project, CARE is working with Cuban farmers to improve agricultural practices. CARE made Cuban food security a national priority by providing rural farmers with access to new farming technologies, helping them in diversifying their food supply and figuring out ways to make food products more accessible at the local level. While Castro’s rule limited non-governmental farmland ownership to 18 percent, Cuba now allows its citizens 66.29 percent of farmland ownership, meaning that Cuba now has the ability and freedom to achieve its food security goals.

FHRC uses non-violence to protect the rights of Cuban citizens. Through the Cuban Repressors Program, the FHRC has created a safe place for Cuban citizens to report violent Cuban government officials. The program provides Cuban activists with cameras and smartphones that allow them to record inhumane activity. It also distributes photos and pamphlets with images of repressive perpetrators to communities and posts identified repressors on the internet. Since the launch of the program, these methods have identified 93 repressors, and with the number of reported repressors decreasing each month, the FHRC is succeeding in attaining justice for the Cuban people.

U.S. Relations with Cuba

Years after Raul Castro took over presidential responsibilities from his brother, President Obama announced that the U.S. and Cuba would restore its diplomatic ties in an effort to normalize relations between the two countries. Obama began to ease U.S. trade and travel restrictions with Cuba that were upheld for decades due to Castro’s abusive policies. However, the Trump Administration is making efforts to roll back Obama’s policies and enforce new economic sanctions on Cuba. With Cuba’s newly elected president, Miguel Díaz-Canel, only time will tell how the U.S.- Cuba relationship will develop.

– Candace Fernandez
Photo: Flickr
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Abiy Ahmed’s Political Accomplishments

Abiy Ahmed’s Political Accomplishments

On April 2, 2018, Abiy Ahmed became the prime minister of Ethiopia. Ahmed has a history of being in the military, formerly serving as an army intelligence officer.  He also has a bachelor’s degree in computer engineering and a master of arts degree in transformational leadership. Yet, these facts do not even compare to Abiy Ahmed’s political accomplishments thus far.

Abiy Ahmed as Prime Minister

At 42 years old, Ahmed is the youngest African leader to have a leadership position.  In his first 12 months of office, Ahmed has already enacted political reforms that will privatize state-owned sugar plants, railways and industrial parks. He also intends to partially privatize Ethiopian airlines, telecom, electric power corporation and shipping & logistics services enterprises. These four industries are the most crucial for Ethiopia since Ethiopia considers them “the four crown jewels of the economy.” Ahmed’s privatization process has already garnered international support, gaining $1.2 billion dollars for Ethiopia from the World Bank. This is the largest loan a Sub-Saharan country in Africa has ever received. Ahmed is not only implementing reforms that are leading to global outreach, but he is also bringing in more money for Ethiopia’s economy in doing so.

Repression in Ethiopia

Many consider Ethiopia to be one of the most politically repressive countries.  Historically, leaders would lock journalists for doing their jobs or torture inhabitants of detention centers. The political repression has not completely improved, but Ahmed is making sure to take steps in that direction. He has already admitted to the repression that exists and even to the government using torture.  Ahmed is attempting to undo Ethiopia’s brutal history of repression by admitting to it and releasing the prisoners. This will not fix Ethiopia’s problems overnight, but it is a small step that should bring the country to a better place for itself and its citizens.

Despite the fact that Ahmed has committed some very important actions that could ultimately impact Ethiopia’s economy, the results have not always been positive. Communal violence has broken out since Ahmed has been in office, resulting in messy and confusing times for many of Ethiopia’s citizens. Ethiopia has an incredibly big, diverse population, which makes it one of the more difficult ones to govern. Many of its citizens still live in poverty and the literacy rates reach only half the population. While Ahmed’s new policies and reforms will be beneficial, that does not mean they will have overall positive effects. However, there is some hope amidst the chaos. It means that the citizens care and that they are looking for something to believe in. Abiy Ahmed’s political accomplishments could be that hope.

Ethiopia still has a long way to go. Abiy Ahmed’s political accomplishments are already paving the way to Ethiopia gaining a more benign government and country. The small steps he is taking will be significant in enacting big change.

– Haley Saffren
Photo: Flickr

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Top 10 Facts About Poverty in South America

Top 10 Facts About Poverty in South America
The poverty that affects so much of South America comes from a history of colonialism, which has left the region with extractive institutions including weak states, violence and poor public services. In order to combat these issues, it is vital to understand these top 10 facts about poverty in South America.

Top 10 Facts About Poverty in South America

  1. Dependence Theory: According to the Council of the Americas, the South American economy is suffering from the U.S.-China trade war, a drop in crude oil prices and generally worsening economic conditions throughout the region. This poor economic performance has been present in the region for a long time. NYU Professor Pablo Querubín noted in a lecture that this is largely due to Dependence Theory. This theory argues that poorer countries and regions will have to specialize in raw materials and agriculture due to the comparative advantage other countries and regions have in producing industrialized products such as computers, advanced technology and services. Therefore, because Latin America has a comparative advantage in producing agricultural products and oil, it will have much greater difficulty moving into the industrial sector.
  2. The Reversal of Fortune Theory: The South American economy has also had a difficult time growing because of its history of colonialism and extractive institutions. Professor Pablo Querubín also referenced the Reversal of Fortune Theory which explains how the pre-Columbian region of South America was so much more wealthy than pre-Columbian North America, yet those roles have reversed in the modern era. The reason is that South America put extractive institutions into place to send wealth back to Spain rather than “promote hard work or to incentivize investment, human capital, accumulation, etc.” Yet, in areas with low population levels, such as pre-Columbian North America, settlers had to establish inclusive institutions “designed to promote investment, effort, innovation, etc.”
  3. Political Instability: Political consistency has been rare in the history of South America. New leaders would often change the constitution when they entered office to better suit their political wishes. In fact, while the U.S. has only ever had one constitution with 27 amendments over the course of about 200 years, Ecuador had 11 separate constitutions within the first 70 years of its history. In Bolivia, there were 12 within the first 60 years. This instability and very quick political turnover have been detrimental to the steady growth of the economy and confidence in the government. Understanding the effects of this issue and the other top 10 facts about poverty in South America are integral to fighting poverty in the region.
  4. Inequality: Inequality is incredibly high in South America. As a result, the incredibly wealthy can afford to use private goods in place of public ones. For example, the rich use private schools, private health insurance, private hospitals and even private security forces instead of relying on the police. Therefore, there is very little incentive for the wealthy to advocate for higher taxes to improve public goods such as public education, police or public health initiatives. As a result, the public services available to the poor in Latin America are extremely lacking.
  5. Education: Education in South America is full of inequality both in terms of income and gender. According to the Programme for International Student Assessment, an institution which evaluates teenagers on their educational performance in key subject areas, most countries in South America perform below average. In one evaluation it determined that the highest-scoring country in South America, Chile, was still 10 percent below average. Furthermore, poor educational performance highly correlates with income inequality.
  6. Indigenous Women and Education: In addition, indigenous women are far less likely than any other group to attend school in South America. According to UNESCO, in Guatemala, 70 percent of indigenous women ages 20 to 24 have no education. The issue of unequal education spreads further to affect women’s livelihoods and presence in the South American workforce. According to the International Monetary Fund, about 50 percent of women in Latin America and the Caribbean do not work directly in the labor force. However, the International Monetary Fund also noted that “countries in LAC [Latin America and the Caribbean] have made momentous strides in increasing female LFP [labor force participation], especially in South America.”
  7. Teenage Pregnancy: One major driver of the cycle of poverty in South America is the persistence of teenage pregnancies which lead to impoverished young mothers dropping out of school and passing on a difficult life of poverty to their children. The World Bank reported that Latin America is the second highest region in terms of young women giving birth between the ages of 15 and 19 years old. Furthermore, a study called Adolescent Pregnancy and Opportunities in Latin America and the Caribbean interviewed several South American teen mothers including one who noted that sexual education was not the problem: “We knew everything about contraceptive methods,” she said, “but I was ashamed to go and buy.” Thus, the study advised that in addition to preventative methods for pregnancy such as education and the distribution of contraceptives, there needs to be action to “fight against sexual stereotypes.” Fortunately, there are activist campaigns such as Child Pregnancy is Torture which advocates for raising awareness about the issue of child pregnancy in South America and encourages the government to take steps such as increased sex education, access to contraception and the reduction of the sexualization of girls in the media.
  8. Food Insecurity: Hunger is a growing issue related to poverty in South America. According to the Food and Agricultural Organization of the United Nations, 39.3 million people in South America are undernourished, which represents an increase by 400,000 people since 2016. Food insecurity in the region as increased from 7.6 percent in 2016 to 9.8 percent in 2017. However, the issue is improving with malnutrition in children decreasing to 1.3 percent. Additionally, there are many NGOs such as the Food and Agricultural Organization of the United Nations (FAO), Action Against Hunger and Pan American Health Organization of the World Health Organization (PAHO) that are implementing vital programs throughout the continent to fight hunger.
  9. Migration: The economic instability and rising poverty in South America have caused many people to migrate out of the region. Globally, 38 million people migrated out of their countries last year with 85 percent of that 38 million coming from Latin America and the Caribbean. Dr. Manuel Orozco from the Inter-American Dialogue think tank stated that “The structural determinant is poor economic performance, while demand for labour in the United States and the presence of family there encourages movement.”
  10. Violence: The high level of violence in South America exacerbates the cycle of poverty in South America. Fourteen of the 20 most violent countries in the world are in South America and although the region only contains eight percent of the world’s population, it is where one-third of all murders take place. Dr. Orozco went on to say that “There’s a strong correlation between migration and homicide. With the potential exception of Costa Rica, states are unwilling or unable to protect citizens.”

Fighting poverty in South America is dependent upon an understanding of the history and realities of the region. Hopefully, these top 10 facts about poverty in South America can shed light upon the cycle of poverty in the region and how to best combat it in the future.

– Alina Patrick
Photo: Flickr

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Living Conditions in Saint Pierre and Miquelon

Living Conditions in Saint Pierre and Miquelon
A short distance from the Canadian province of Newfoundland and Labrador lies Saint Pierre and Miquelon, an overseas collectivity of France. Its remoteness and obscurity marks it as culturally, economically and demographically distinct from the rest of North America. Living conditions in Saint Pierre and Miquelon compare well with much of the developed world in some respects, but not all. Below are the top 10 facts about living conditions in Saint Pierre and Miquelon.

10 Facts About Living Conditions in Saint Pierre and Miquelon

  1. Economic Disputes Disrupted the Fishing Industry – Fishing quota disputes with neighboring Canada have devastated the islands’ traditional economic reliance on the fishing industry. Moreover, in response to rampant overfishing, the International Arbitration Tribunal of New York’s prohibition on deep-sea cod fishing in 1992 ended centuries of this practice, contributing to the decline in living conditions in Saint Pierre and Miquelon.
  2. The Service and Energy Sectors and Government Employment Supplanted Fishing – With the decline of the fishing industry, the service sector and government employment dominate the economy. As of 2010, the services sector comprised 86 percent of the islands’ GDP, while 2006 data indicates that (as of that year) agriculture constituted two percent of the GDP and industry comprised 15 percent. The construction of a thermal power plant in 2015 precipitated the expansion of the extractive industries and energy sector.
  3. Sex Ratios Differ Between Age Groups in this Aging Population – As of July 2018, the population of Saint Pierre and Miquelon stood at 5,471. At 41.44 percent of the total population, citizens 25 to 54 years old comprise the largest share of the population. Citizens 55 to 64 years old are 13.69 percent and citizens 65 years and older are 21 percent of the population. In younger age groups, the sex ratio skews in favor of males, a characteristic shared with citizens 55 to 64 years old but not with those 25 to 54 years old or 65 years and older.
  4. A Transforming Economy Impacts Unemployment Rates – Unemployment in the islands decreased from 9.9 percent of the labor force in 2008 to 8.7 percent of the labor force in 2015. The marginalization of the traditional fishing industry and the rise of the service sector and certain industries influence employment rates.
  5. Most Inhabitants are French-Speaking Catholic Basques and Bretons – As an overseas collectivity of the Republic of France, French is the official language of the islands. Most of the population descends from Basque and Breton fishermen. An estimated 99 percent of the population identifies as Roman Catholic.
  6. With Little Arable Land, the Population is Overwhelmingly Urban – As of 2018, 90.2 percent of the population resided in urban centers, mostly concentrated on Saint Pierre Island. Agriculture constituted two percent of the GDP as of 2006, although it employs as much as 18 percent of the labor force. As of 2011, only 8.7 percent of the land qualified as arable.
  7. Fertility is Low, While Life Expectancy is High – Estimates in 2018 indicated that total life expectancy was 80.7 years, 78.4 years for men and 83.2 years for women. Infant mortality lies at 6.4 deaths per 1,000 live births, 7.4 per 1,000 for male births and 5.3 per 1,000 for female births. However, the fertility rate is low, averaging at 1.57 children born per woman as of 2018.
  8. The Health Care System Functions Well – Saint-Pierre and Miquelon boasts a universal health care system. Until 2015, pursuant to an agreement between France and Canada, islanders could seek medical treatment in St. John’s, the capital of the Canadian province of Newfoundland and Labrador. Starting in 2015, Saint-Pierre and Miquelon began probing for an alternative to this prior arrangement as a result of increasing costs.
  9. The Educational System Conforms to Metropolitan France – Saint Pierre and Miquelon provides mandatory and free education from the ages of six to 16. Primary education lasts five years and secondary education lasts up to seven years, following the French model. Secondary education consists of a four-year program followed by three further years of study and the bestowal of a baccalaureate degree.
  10. Citizens Directly Elect Representatives to a Local Autonomous Legislature – As an overseas collectivity of the French Republic, Saint Pierre and Miquelon governs itself through a unicameral territorial council elected by absolute majority vote. This legislative body consists of 19 seats, 15 from Saint Pierre and four from Miquelon. An electoral college vote guarantees representation in the French Senate by a single senator for five-year terms.

Though living conditions in Saint Pierre and Miquelon are not intolerable, opportunities for improvement exist. The archipelago’s relative remoteness allows it to avoid the attention of outsiders, yet it has not escaped the forces of globalization, of which the economic and cultural consequences have been tremendous. These top 10 facts about living conditions in Saint Pierre and Miquelon ought to dispel any notion that this is an inconsequential territory.

– Philip Daniel Glass
Photo: Flickr