Archive for category: Economy

Information and stories about economy.

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Three Countries in Hyperinflation

Hyperinflation

When it comes to global poverty, an important factor of a country’s economy is its inflation rate. Inflation occurs when the value of a nation’s currency decreases, but the prices for goods increase. Inflation affects many facets of everyday life, such as nationwide poverty rates, food and medical supplies.

Hyperinflation occurs when inflation rates rise quickly and uncontrollably. Hyperinflation is reached when an economy’s inflation rate is at least fifty percent for a thirty day period. However, high inflation rates consistent over a prolonged period of time also qualify as hyperinflation.  Here are three countries in hyperinflation today.

Venezuela

In the 1970s world energy crisis, Venezuela was a highly profitable oil producer. After oil prices dropped once the energy crisis ended in the 1980s, Venezuela’s chief export greatly declined in revenue and its economy began to suffer. Despite the decline in exports, Venezuela still needed to spend large sums of funding on the importation of basic goods for its people. This led to inflation, as the country dug itself into deficit spending. To pay for imported goods, Venezuelan banks then printed out paper notes not backed by actual wealth.

Now, inflation in Venezuela has reached monumental levels of devastation. Venezuela has been in hyperinflation since November 2016, when the inflation rate exceeded 50 percent. The International Monetary Fund estimates that inflation in Venezuela will exceed ten million percent by the end of 2019.

Because of this economic crisis, poverty is widespread. In 2017, the poverty rate across Venezuelan households reached 87 percent. On top of widespread poverty, food and medical supply shortages are rampant across Venezuela. The health of its people has deteriorated as weight loss and the spread of disease inflict the nation.

Currently, the Venezuelan government rejects the International Monetary Fund’s option to default on its debt. Venezuelan U.N. representatives have commented that in order for the nation to progress, it needs internal structural changes, not foreign aid.

South Sudan

South Sudan’s economy is also almost entirely oil-based. Of the countries in hyperinflation, South Sudan is the newest, gaining independence from British rule in 2011. However, South Sudan was quickly caught in a civil war from 2013 to 2018, soon after its founding. Damage to oil fields and other resources due to warfare severely affected the revenue of South Sudan’s exports. Inflation began as the struggle for resources and funding inflicted this budding nation.

South Sudan’s current economic crisis has caused mass poverty and food insecurity for its civilians. According to recent reports from the U.N., 43 percent of South Sudanese households are food insecure. At its peak, inflated food prices reached about 513 percent in December 2016. By the end of December 2018, the inflation on food prices dropped to 51 percent but is still hyperinflammatory by definition.

Unfortunately, South Sudan is currently not focusing on any poverty-reduction programs. According to the World Bank Organization, South Sudan’s overall inflation rate was an estimated 130.9 percent by the end of 2018; by the end of 2019, it is expected to drop to 49.3 percent, just under the hyperinflation threshold. However, given the financial instability of the nation, South Sudan will remain under close observation of the International Monetary Fund and similar entities for the foreseeable future.

Zimbabwe

Zimbabwe’s economy thrived in the 1980s and early 1990s, after declaring its independence from British control and creating its own domestic dollar currency in celebration. In the 1990s, however, Zimbabwe’s agricultural-based economy took a major hit after a series of crop failures. Compounded by the high costs of imports and funding for the war, Zimbabwe’s economy began to falter. In a panic to pay for goods, Zimbabwean banks rushed to print excess bills, leading the nation into hyperinflation.

Zimbabwe’s economy reached hyperinflation in March 2007, just passing the 50 percent threshold. For the next year, the nation’s inflation was a tumultuous series of highs and lows, eventually reaching a staggering 79.6 billion percent in November 2008. Eventually, Zimbabwe was forced to abandon its domestic currency, as its own population boycotted using the drastically inflated Zimbabwean dollar.

Despite the nation’s inflation rate lowering back down to 59.4 percent as of February 2019, Zimbabwe is still struggling to limit its cost of imports and boost its revenue from exports.

Potential Solutions

While there are numerous potential ways to address hyperinflation, a common solution for this phenomenon is dollarization — the abandonment of a failing domestic currency in favor of a stable foreign currency. A notable success story of dollarization is Montenegro, where the considerably weak Yugoslavic dinar was replaced with the euro, a more stable currency used widespread across the European Union. Before total dollarization, the inflation in Montenegro peaked at 26.5 percent in 2001. After adopting the euro, the country’s inflation is under one percent, as of 2019.

Of the three countries in hyperinflation today, Zimbabwe did utilize this method of dollarization; however, as of 2019, it abandoned dollarization, triggering the start of nationwide economic problems yet again. Overall, for these three countries in hyperinflation today, maintaining dollarization may be their best chance in regaining economic stability.

– Suzette Shultz
Photo: Wikimedia

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10 Facts About Poverty in Croatia

10 Facts About Poverty in Croatia
Croatia is located between central and southeastern Europe and includes a multitude of small islands that are scattered alongside its maritime coast with the Adriatic Sea. Despite being a member of the wealthy European Union, Croatia is economically unstable and wide-reaching poverty affects much of the population. Here is a list of 10 facts about poverty in Croatia that will illustrate living conditions today.

10 Facts About Poverty in Croatia

  1. High Poverty Rates: In 2008, Croatia experienced a sharp rise in poverty that exceeded the rates recorded by other EU members. About one-third of all citizens live in conditions of extreme material deprivation and just more than 15% are unable to afford the basic necessities needed to lead a comfortable life. Furthermore, there is a correlation between poverty and inequality in Croatia. A higher income is necessary as the world around develops. This makes it difficult for uneducated workers to afford the goods needed to increase their standard of living.
  2. The Country Faces a Significant Debt Burden: In 2018, the national debt in Croatia accumulated to $45.6 billion, which is equal to 74.1% of the country’s GDP. This amounts to $11,048 of debt for each individual living in Croatia. While the ratio has been improving since 2014, central government spending outweighs government revenues by a considerable margin. This may ensure that foreign debt will continue to burden Croatian citizens in the foreseeable future.
  3. Croatia has the Fourth Highest Youth Unemployment Rate in the EU: Statistics showed the Croatian youth unemployment rate at 23% in January 2019. According to Marijana Petir, a member of the European Parliament, the Croatian government has thus far created “improper employment conditions.” This has driven educated Croatian youth to seek jobs in wealthier European countries that have entrenched stable job opportunities into their economies.
  4. Poverty Disproportionately Affects Children: When the national debt peaked in 2014, about 2.6 million Croatian children were living in destitution. These vulnerable groups of individuals suffer the most due to a lack of the necessary nutrients they need to grow and an adequate government infrastructure necessary to secure future prospects of upward mobility. UNICEF is a leading organization working to improve the lives of impoverished children. In 2017, UNICEF entered into a partnership with the Croatian government in which both parties agreed to focus on improving children’s rights across the country.
  5. Croatia is Experiencing a Massive Emigration Wave: Records show that far more individuals have left Croatia since the recession than previously estimated. While Croatia had recorded the number at 102,000, foreign statistics indicate that the number accumulates to 230,000 individuals. Many of these emigrants are in fact refugees and asylum seekers hoping to find better living conditions in other EU states.
  6. Croatia Struggles with Underdeveloped Regions: Small towns and settlements on the eastern and southeastern borders experience the highest rates of poverty. Economic struggles are due to the effects of the Croatian War of Independence in the 1990s. This war to separate from Yugoslavia led to massive destruction in these regions, as it caused $36 billion worth of damage and destroyed thousands of houses.
  7. Education Decreases the Risk of Poverty: Among those who attend primary school in Croatia, the risk of poverty is 37.1%. This number drops by 16% for those who attend secondary school. The chance of attending even basic levels of education is unlikely for impoverished children in Croatia, as families struggle to afford the necessary supplies needed to excel.
  8. Health Care is in Need of Reform: The European Commission released an assessment of the Croatian health care system at the end of 2017 indicating their concerns. Some issues include low spending on health care, an insufficient number of nurses and doctors and an unhealthy general population. Croatians struggle with drinking, smoking and obesity, which all harm the immune system and increase the risk of attracting disease.
  9. Croatia’s Human Development Index (HDI) Rate is Increasing: Croatia’s HDI is steadily increasing, showing that the country is bettering its economic standing. Indicators in 2017 show that life expectancy at birth, years of schooling and GNI per capita are all on the rise. While Croatia’s HDI value of 0.831 puts it in the very high human development category, it is still well under the average HDI value for the European Union.
  10. The Programme for Fighting Poverty and Social Exclusion: The EU created this initiative in order to combat the coupled problems of poverty and exclusion. The Croatian government adopted this program in 2015 as a strategy to halt the expansion and mitigate the effects of these two issues. The Croatian government has taken a regional approach when implementing the program, as it has allocated resources based upon which areas are in most need of aid.

Concluding Thoughts

These 10 facts about poverty in Croatia detail the hardships that the Croatian population has endured; however, they also present a few avenues the central government is taking in order to alleviate these issues. Croatia has experienced slow yet impactful progress since 2014. Croatia needs to do more work if it is to become among the most affluent European states.

– Annie O’Connell
Photo: Flickr

E-Commerce Markets in Africa: A Mobile Economy

E-Commerce Markets in Africa
Africa holds less than 2 percent of the global e-commerce market, but an increase in participation could benefit the continent on a massive economic scale.

In fact, it has been shown that e-commerce allows consumers to connect to businesses as well as to other consumers in order to exchange goods via the Internet. E-commerce benefits global markets by improving efficiency in distribution channels and creating a more prominent market presence for individuals or businesses trying to sell products. For developing countries in Africa, one of the main obstacles in gaining access to e-commerce markets is limited access to banks.

Mobile Money

Globally, roughly 1.7 billion adults remain without access to a financial institution.

In order to alleviate this problem, mobile banking services focus on the high percentage of adults who have mobile phones in Africa. In South Africa, about 90 percent of the adult population owns a mobile device; whereas, Tanzania has the lowest with only about 75 percent of the adult population owning a mobile device.

The integration of mobile banking companies has increased dramatically over the past decade with 135 live mobile monetary services available in 2017. In fact, the number of subscribers in sub-Saharan Africa hit 44 percent in 2017. Mobile banking is attractive to people who do not physically have access to a bank or who do not have a permanent home address. It allows them to set up an account and protect their money electronically while giving them the freedom to interact financially on a global scale through e-commerce.

The Problem of Rural Communities

A smaller density of people lives in rural areas so there is a lower prospective income for operators who wish to set up mobile services in these regions. Roughly 20 percent of the population of sub-Saharan Africa is spread over 70 percent of the land. Consequently, operators in rural communities only secure a revenue of about one-tenth compared to those who work in urban areas.

Since many individuals rely on mobile banking to engage in the global market, reducing this barrier is essential to the continued development of e-commerce markets in Africa. As a result, in 2018, Uganda’s Communications Commission decided to pair with satellite firms Intelsat and Gilat in order to help increase access for those living in two rural communities.

The Prospective Value of E-Commerce Markets in Africa

A study by the McKinsey Global Institute estimates 3.7 trillion dollars (6 percent of GDP) could be added to the developing world’s collective GDP by 2025 due to a growing digital finance sector. It is 80 to 90 percent less expensive for financial institutions to provide mobile banking services than it is to create new physical branches. This method allows financial institutions to penetrate more of the population in developing and rural areas.

The e-commerce market has the potential to grow enormously over the next five years. Although access to financial institutions is an obstacle that many less privileged individuals face, an increase in mobile money services is helping to create parity. Financial inclusion means an upward trend in the global market participation, and through the development of internet-based trade, the global economy will experience more consumers, products and efficient distribution.

– Tera Hofmann
Photo: Flickr

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Top 10 Facts About Living Conditions in Azerbaijan

top 10 facts about living conditions in azerbaijan

Azerbaijan is a country of 9.8 million people situated between Eastern Europe and Western Asia. It is bordered by the Caucasus Mountains and the Caspian Sea. A former part of the Soviet Union, Azerbaijan is roughly the size of Maine. Below are the top 10 facts about living conditions in Azerbaijan.

Top 10 Facts About Living Conditions in Azerbaijan

  1. A Trading Economics report from 2008 shows that only 2.5 percent of the population lives on two dollars per day, while the top 10 percent of the population hold a quarter of the country’s wealth.
  2. Falling oil prices devastated Azerbaijan’s economy in 2015 when the national GDP fell from $75.244 billion in 2014 to $53.074 billion in 2015. The GDP fell even further in 2016 to $37.868 billion. The economy has begun to recover, but the GDP lingers just above half of the pre-economic shock levels.
  3. As the economy recovers, Azerbaijan hit an average record-high income per month in 2019. In March of this year, the average income was 577.60 AZN per month, roughly $399. This is a stark contrast from the record-low income per month just a decade ago, when the United States recession affected the world economy. In April 2008, the average wages were 242.70 AZN per month or $142.
  4. During this recession, food inflation rose to a peak of 18.27 percent. To offset the public’s inability to purchase food, the government raised pensions and wages, which is a move that many economists believed would further increase inflation, however, food inflation currently sits at around two percent.
  5. A majority of the population live in urban areas; 55 percent of citizens reside in cities.
  6. 100 percent of the country reports having access to electricity, both in rural and urban areas. The goal of the government has been to meet and maintain access to electricity for the entire population, but they have struggled to achieve their goal. Access has sat at or over 95 percent for the last three decades but has fluctuated.
  7. 78 percent of the population has access to the internet, although sweeping reforms in Azerbaijan’s government have given authorities the right to widely ban content. In recent years, many journalists were detained and sentenced to up to 10 years for their internet activity.
  8. Access to clean water was traditionally an issue for the people of Azerbaijan. In the early 1990s, only 68.8 percent of the population had access to clean water. Today, nearly 90 percent of people have access to clean water in their households. This improvement was made using many different public projects including sanitation plants installed along the river, and the collection and processing of rainwater.
  9. The fertility rate is low with just under two live births per woman in 2016, compared to near six live births per woman in the early 1960s. Programs that promoted birth control and educated women on pregnancy helped the fertility rate to decline. Another aiding factor was the increase in healthcare that allowed more children to live into adulthood, so families did not need to have as many children to ensure their family’s growth.
  10. The life expectancy at birth for the population of Azerbaijan is 72.8 years. Women have a life expectancy of over 76 years, while men have a life expectancy of 70 years.

These top 10 facts about living conditions in Azerbaijan suggest that the country is recovering from a difficult economic era. While there is less devastating poverty in recent years, the economic downturn of 2015 and 2016 shows that Azerbaijan is a country that needs to take steps in stabilizing the economy, investing further in its citizens and broadening its markets if the country wants to completely remove itself from poverty and carry its people into a brighter future. Azerbaijan has reduced the amount of poverty among their citizens, but they still have more to accomplish.

– Kathryn Moffet
Photo: Flickr

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10 Facts about Violence in Venezuela

10 Facts About Violence in VenezuelaVenezuela has been in an economic crisis since the election of Hugo Chavez in 1998 when the country’s oil-based socialist economy began to rapidly decline. Since then, Venezuela has faced extreme inflation that exacerbates with each passing year. Crippling poverty exists in this South American nation on a massive scale, snowballing into issues beyond the depreciation of the bolivar currency. In Venezuela, nationwide violence is a consistent problem that brings mass media attention from all over the world. In order to fully understand how to help alleviate the rising violence in Venezuela, it is essential to understand the top 10 facts about violence in Venezuela.

10 Facts About Violence in Venezuela

  1. A primary cause of violence in Venezuela is the economic recession sweeping across the nation. Since November 2016, the country has been experiencing hyperinflation, as every month since that November, the bolivar currency has exceeded an over 50 percent inflation rate. In addition, Venezuela’s overall unemployment rate has been around 35 percent since December 2018; projections state that this rate will significantly increase to 44 percent by the end of 2019. According to the United Nations, nearly 90 percent of Venezuelan residents live in poverty. This economic recession has caused mass financial insecurity across the nation, becoming a potential cause for the rising violence across Venezuela.
  2. Gangs, especially mega-gangs, are a major factor in the violence across Venezuela. Mega-gangs typically have around 50 members, with some gangs having members in the hundreds. There are about a dozen of these mega-gangs nationwide. Criminal gangs heavily congregate in the poorest places in Venezuela, called barrios or ranchos. The gangs are frequently responsible for violent crimes in these impoverished neighborhoods.
  3. The Citizens’ Council for Public Security and Criminal Justice ranked the Venezuelan capital, Caracas, as the most violent city in the world in 2016. As of 2018, Caracas maintains its place as one of the top three most violent cities worldwide.
  4. Caracas reaches notoriety for its high homicide rates. In 2015, Caracas was at one of its highest homicides per capita with around 119 murders per 100,000 residents.
  5. Across the whole of Venezuela today, the estimated homicide rate is 89 murders per 100,000 residents. While less compared to Caracas on its own, Venezuela’s overall homicide rate is still one of the highest worldwide.
  6. Despite there being violent crime widespread across the nation, the Venezuelan Violence Observatory reports that people report just over 60 percent of Venezuelan’s crimes.
  7. While many consider Caracas to be one of the most unsafe cities in the world, the true extent of violence in Venezuela is only speculative. According to Insight Crimes, referencing the Venezuelan Violence Observatory, the Venezuelan government prevents the release of real crime statistics. The Venezuelan government rejects any observational claims that the nation’s crime rates, especially in regard to homicides, are increasing. Nongovernmental groups like the Venezuelan Violence Observatory (OVV) have become the primary sources reporting on violence in Venezuela in the absence of government transparency.
  8. Under the regime of Nicolás Maduro, the Bolivarian National Police has created the Special Actions Forces (FAES) in response to the national crises. According to the OVV, about one-third of the murders in Caracas are the result of FAES and other security forces within Maduro’s regime. These security forces aim to repress political protestors and target suspects of violent crimes.
  9. Violence is committed by both sides of the Venezuelan political crisis. Loyalists and security forces in support of Maduro’s regime target protesters resulting in beatings, unlawful incarcerations and atrocities committed to those incarcerated. Some have reported that rebels protesting Maduro’s regime are aggressive towards police forces. They reportedly set fires to street barricades, and in an isolated attack, attempted to drop grenades onto a government building.
  10. Organized crime and violence flourish in abandoned peace zones across Venezuela. An unofficial government project, the government designated peace zones areas across Venezuela that lack police presence. The locals were supposed to negotiate policing, which left communities vulnerable to gangs. With the peace zones initiative now abandoned, these areas remain overrun with black markets and violent crimes.

Crime and violence is now an everyday norm across Venezuela, resulting in thousands of civilian deaths each year, and increasingly unsafe living conditions nationwide.

While there are many issues surrounding the violence in Venezuela, however, the world is noticing the situation. The United Nations has recently met to discuss the numerous crises going on in Venezuela. There was a mass condemnation of the government’s use of violence against peaceful civilians. The overall consensus is that since the problems in Venezuela stem from political discourse, peaceful political initiatives are the correct route in addressing the nation’s problems.

– Suzette Shultz
Photo: Flickr

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The Pros of Immigration Outweigh the Cons

Pros of Immigration

While many view immigration as a cultural crisis, the pros of immigration are significant. Immigration is a point of contention as immigrants change the face of a population and bring their own culture with them. Moreover, immigrants receive criticism if they do not fully integrate, by not speaking the country’s primary language. Some people simply feel there’s no room for immigrants. They fear their jobs will be taken or undercut by the low wages some immigrants are willing to work for.

In spite of these concerns, it is undeniable that immigrants infuse much needed vitality into the economy. They build businesses, create jobs and bring new perspectives. Most importantly, welcoming immigrants supports and promotes an international standard of human rights. Everyone should be able to settle somewhere safe, healthy and stable—especially if their native country is not so.

Below is an immigration case study of sorts, demonstrating the economic benefits of immigration in Japan, the U.S., and Western Europe.

Japan

Plagued by an aging population and declining birth rates, immigration provides Japan with a new source of young workers. The Japanese Health Ministry predicts that by 2060, the country’s population will fall to 86.74 million. This is a 40 million decrease since 2010. Currently, 20 percent of Japan’s population is over 65 years old. As a result, this burdens Japan’s shrinking workforce with the funds for their pensions and healthcare. But immigration into Japan ensures the nation’s economy can maintain itself as people retire.

Japan is historically unwelcoming to immigrants, believing peace and harmony to be rooted in homogeneity. As such, the nation’s immigration policy reflects this. Japan only allows a small number of highly skilled workers into the country. This policy has been in place since 1988 to combat labor shortages. However, this is no longer enough to combat Japan’s worsening economy. In 2018, labor shortages in the nation were the highest they had been in 40 years.

However, the pros of immigration in Japan are clear. Without it, Japan faces an incredibly insecure economic future. With no sign of population growth, the nation’s perpetually shrinking workforce will become unable to support its retired citizens. However, immigrants can round out the workforce in Japan. And they can neutralize any economic woes the nation might face in the future by preventing labor shortages.

USA

The cultural and economic contributions immigrants have made to America are vast, overwhelmingly advantageous and long-lasting.

A study done by economists at Harvard, Yale and the London School of Economics found US counties that accepted more immigrants between 1860 and 1920 are doing better today as a result. These counties have significantly higher incomes, higher educational achievement, less poverty and lower unemployment because immigrants provided the low-skilled labor needed to support rapid industrialization. Undeniably, immigrants have always and still continue to increase economic growth in America.

Similarly, immigrants in the U.S. have been integral to innovation and entrepreneurship. Half of all startups in America worth over a billion dollars have been founded by immigrants. Eleven of these startups employ more than 17,000 people in the U.S. Some of these companies, such as Uber and WeWork, have significantly changed American culture. They modify the way Americans live their daily lives. Therefore, the pros of immigration in the U.S. are grounded in the diversity of thought brought by immigrants, necessary to further American innovation and economic growth.

Western Europe

Like Japan, Western Europe is battling an aging population and declining birth rates. Fertility rates are expected to hit zero in the next decade. Consequently, this region may not be able to sustain its expansive social welfare programs as its workforce shrinks and retired populations grow. In Germany, the median age is 47.1 years, the oldest in Western Europe. This is only slightly younger than Japan’s 47.3 years. Besides convincing its native populations to have more children, immigration is their only alternative.

Immigration into Western Europe is an undeniable win for both the immigrants and the host countries. Many new immigrants in Western Europe have escaped unstable regimes, religious persecution, and economic downturn in North African and Middle Eastern countries. Thus, immigrants give the region a younger workforce that is able to sustain the region’s expensive social benefits. In return, Western Europe provides immigrants with jobs, stability, and a safe place to live.

While still a very divisive topic, the pros of immigration lie in its plethora of economic benefits. It is undeniable that immigration has always been the driver of economic growth, despite all of the criticism. Immigration provides immigrants with an alternative to oppressive regimes and other instability, of course. And the pros of immigration for nations absolutely outweigh the cons.

– Jillian Baxter
Photo: Pixabay

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Economy and Political Unrest in Sri Lanka

Where is Sri Lanka
Sri Lanka is a teardrop-shaped island off the southern coast of India. It is home to more than 21 million people, despite consisting of only 25,332 square miles. Its largest city, Colombo, has a millennia-long history as a prominent trading port and is currently a popular tourist destination.

The Democratic Socialist Republic of Sri Lanka was previously a British colony called Ceylon and kept that name until 1972. It is governed by an elected president and unicameral parliament with a prime minister, as well as a judicial branch. The most popular languages are Sinhala, Tamil and English with several other indigenous dialects. The country is overwhelmingly Buddhist with significant Hindu and Muslim minorities and a small number of Christians (primarily Roman Catholic). Religion plays a significant role in the lives of Sri Lankans.

Sri Lankan Civil War

Similar to British rule in Rwanda, the British colonial government favored the Tamil people, an ethnic minority concentrated in the northern and eastern regions. The British gave the Tamil people a position in the colonial government and Sinhalese land. After Sri Lanka gained independence in 1948, the government deported many Tamil people and greatly reduced its power in favor of the Sinhalese majority. Ethnic tensions rose in the following years, exacerbated by differences in religion, income and development. This tension gave birth to the Liberation Tigers of Tamil Eelam or the Tamil Tigers which advocated for an independent Tamil state. In 1983, the Tamil Tigers attacked Sri Lanka government troops, starting a 26-year civil war.

It is estimated that 100,000 people died in the conflict, with atrocities and human rights abuses committed on both sides. The Tamil Tigers are notorious for its use of child soldiers and suicide bombers, forcibly recruiting Sri Lankan civilians or using them as human shields. Accusations have pointed to the Sri Lanka government shelling their own designated safe zones, food distribution lines and hospitals. People have also accused the government of mass rape and ethnic cleansing. Attempts to bring perpetrators to justice have been slow-moving.

A New Economy

Since the end of the war in 2009, Sri Lanka’s economy has grown by 5.8 percent every year. The economy is transitioning from a rural base to an urban manufacturing base, especially in the garment industry. This increasing wealth has expanded the middle class and reduced the poverty rate from 15.3 percent in 2006 to 4.1 percent in 2016. There have also been significant improvements in public health which have paved the way to some of the highest life expectancies in Asia; 72 for men and 78 for women. In less than a decade of peace, Sri Lanka became a development success story.

Political Unrest

Despite the unprecedented economic success, Sri Lanka is not immune to political extremism and unrest. In 2018, president Maithripala Sirisensa fired the prime minister, Ranil Wickremesinghe. The country installed Mahinda Rajapaksa, a former president accused of serious human rights abuses, in his place. Wickremesinghe refused to accept his replacement, effectively giving Sri Lanka two competing prime ministers for several months before being re-appointed. With such recent political unrest in Sri Lanka, it is unlikely that it will reach nonviolent political stability in the near future.

– Jackie Mead
Photo: Flickr

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The Struggle for Rice Self-Sufficiency in Côte d’Ivoire

Rice Self-Sufficiency

Côte d’Ivoire is a West African nation of 23.7 million people. It is the largest producer of cocoa in the world and has a significant agriculture industry. However, Côte d’Ivoire has struggled to achieve self-sufficiency in the production of rice, a staple crop for many Ivorian people. Côte d’Ivoire imports about half of its rice supply from other nations. This can lead to positive trade relationships, but relying on imports for staple crops can also create problems, as the government discovered in April 2019.

The Côte d’Ivoire Rice Ban

In April 2019, the government of Côte d’Ivoire banned rice imports from the Singapore-based company, Olam International, for a year after it found that an 18,000-tonne rice shipment from Myanmar was inedible. “The unique circumstances relating to the recent rejection of cargo rice were unfortunate and not representative of the shipments of rice,” a company spokesperson told Bloomberg.

“[W]e should exploit our natural potential,” said Agriculture Minister Mamadou Coulibaly, citing Côte d’Ivoire’s substantial agricultural resources and the fact that Ivorians consume an average of 63 kilograms (about 139 pounds) of rice per person per year. By comparison, Americans consume an average of 197 pounds of grains per person per year.

Côte d’Ivoire’s Economy and the CFA Franc

Côte d’Ivoire won its independence from French colonial rule in 1960. It has since become Africa’s fastest-growing economy, but times of prosperity and growth have been punctuated by authoritarianism and political violence.

Like many nations emerging from colonial rule, Côte d’Ivoire has also struggled with the legacy of colonialism, of which difficulties with rice self-sufficiency are one aspect. A 2017 report from an international coalition of NGOs found that business profits, debt payments and other financial flows to the rest of the world still outweigh the investment in and aid to African nations to the tune of $41 billion per year.

One difficulty that Côte d’Ivoire faces in achieving economic independence is the CFA franc. The CFA franc is an outgrowth of French colonial rule in Côte d’Ivoire and other African nations and is a common currency that 14 African nations use. Technically, the CFA franc refers to both the West African and Central African CFA franc, but these two currencies are, in practice, interchangeable. The system requires that member countries hold 50 percent of their foreign exchange reserves in the French treasury. People have long criticized this as a threat to member nations’ sovereignty, impeding development. “[F]or those hoping to export competitive products, obtain affordable credit, find work, work for the integration of continental trade, or fight for an Africa free from colonial relics,” writes development economist and former technical advisor to the President of Senegal Ndongo Samba Sylla, “the CFA franc is an anachronism demanding orderly and methodical elimination.”

One consequence of this system is that the French government can choose to devalue the currency without the consent of member nations, as it did in 1994. This led to widespread discontent, as it increased prices for many everyday goods. A 2010 study published in the Proceedings of the National Academy of Sciences found that devaluation “did not stimulate local production, or decrease rice imports.” Indeed, concurrent policies required by the World Bank actively “recommended abandoning the goal of self-sufficiency.”

The Economic Community of West African States (ECOWAS) plans to replace the CFA franc with new shared currency next year. Demba Moussa Dembele, an economist, and president of the African Forum for Alternatives writes that, in order for the new currency to be successful, “[t]he consumption habits of citizens and states should focus on…goods and services produced locally. This is especially important for agricultural products in order to develop agriculture that can be both a great source of employment and increase demand for the industrial and service sectors.”

Other Initiatives to Increase Rice Self-Sufficiency

In addition to ECOWAS adopting a sovereign currency, there are many initiatives working to increase rice self-sufficiency for many African nations, including Côte d’Ivoire. For example, Mali, which borders Côte d’Ivoire, has seen great success from a subsidy program it adopted after the 2008 financial crisis increased the price of rice. This program subsidized both the purchase of fertilizer by rice farmers and the purchase of rice products by consumers. Today, Mali has not only achieved rice self-sufficiency but is actually a net exporter of rice, according to the Thomson Reuters Foundation.

The System for Rice Intensification is a method for increasing the amount of rice that farmers can grow in the same amount of space while maintaining eco-friendliness. A 2018 study of the method by the West and Central African Council for Agricultural Research and Development found that the method increased rice yields by 56 percent for irrigated rice and 86 percent for rain-fed rice. The researchers studied rice yields from more than 50,000 farmers in 13 different countries, including Côte d’Ivoire. ECOWAS has adopted a goal of achieving rice self-sufficiency by 2025, and the study projects that if all rice farmers in ECOWAS member countries adopted the method, not only could they achieve rice self-sufficiency, but there would be a five percent surplus in the rice supply.

So, while achieving rice self-sufficiency remains a formidable challenge for the people of Côte d’Ivoire, there are many reasons to be optimistic, including a new currency, the example of a neighboring nation’s stimulus programs and more efficient farming techniques.

– Sean Ericson
Photo: Flickr

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Top 10 Facts About Living Conditions in Trinidad and Tobago

top 10 facts about living conditions in trinidad and tobago

North of the coast of Venezuela, Trinidad and Tobago is a wondrous country with elements that make the island unique. Living conditions in Trinidad and Tobago are bewildering due to its economic growth and the risks of HIV. There are many factors that affect living conditions on this island that make it whole. These are the top 10 facts about living conditions in Trinidad and Tobago.

Top 10 Facts About Living Conditions in Trinidad and Tobago

  1. Trinidad and Tobago is regarded as one of the wealthiest countries in the Caribbean due to its oil reserves and rich resources which help boost the economy in great ways. It is also regarded as one of the top three wealthiest countries in the Americas because of the amount of oil and gas throughout the island allowing for the economy to thrive and helping people live well throughout the island.
  2. Public healthcare is provided for free for citizens on the island, but there are private healthcare providers that can be paid for if it is affordable. There are numerous healthcare centers established around the island making it easily accessible for the citizens in Trinidad and Tobago.
  3. Although the economy has seen a significant boost since its independence in the 1960s, 26 percent of the population is living in poverty, surviving on less than $2.75 a day.
  4. Education is free to children between the ages of 5 and 16. There are private institutions that citizens can pay for but public education provides children with free transportation, books, and meals while in school giving children the opportunity to learn effectively.
  5. Trinidad and Tobago suffer from an increase in crime rates compared to 2016. There has been a 5.5 percent increase in crime rates, which are mostly violent crimes including murder and robbery.
  6. Trinidad and Tobago have a rich cultural life throughout the island celebrating historical African music, dance and literature.
  7. Housing has become a primary concern throughout the country due to the increasing population throughout the island. Many people struggle to find housing in urban areas due to the increasing shortage of land and high construction costs.
  8. Housing conditions vary throughout the urban and rural areas of Trinidad and Tobago. Families in rural areas usually inhabit wooden huts and have various family types where women are typically the head of the household.
  9. The unemployment rate has reached its lowest in 2015 with a rate of 3.5 percent. It has seen a significant decrease since the 90s where it was 17.2 percent.
  10. HIV has become a prevalent disease affecting a large amount of the population. Nearly 11,000 people are living with HIV but with access to free public health care, nearly 75 percent of the population is receiving treatment for the disease.

Trinidad and Tobago is experiencing great economic growth due to the vast amount of resources and has seen progress regarding education and health care but still see issues regarding diseases, housing and poverty. Although these may be factors that can affect the country negatively, Trinidad and Tobago have the potential to combat these elements to help the country thrive. These are the top 10 facts about living conditions in Trinidad and Tobago.

– Elijah Jackson
Photo: Flickr

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Infrastructure Projects in Armenia

Infrastructure Projects in Armenia

Armenia is a landlocked country in the Caucuses region, bordered by Azerbaijan and Turkey. Azerbaijan and Armenia have been in a state of frozen conflict since 1994 with things heating up briefly in 2016. Turkey and Armenia have been at odds for around 100 years over the Ottoman Turks treatment of ethnic Armenians throughout the history of the Empire, especially during the First World War. Due to these sour relations, the borders are closed. Armenia is forced to trade through the two other nations that it borders, Georgia and Iran. Many infrastructure projects in Armenia are focused on increasing the ease of the flow of goods between Armenia and Georgian Ports.

Armenia’s most important railroads used to be owned by a Russian company. Now they are in a state of disrepair. These three railroads run to Georgian ports where Armenian trade goods are then shipped to globally. However, further improvements to rail transport have been halted due to expenses. This has been attributed to lower than expected Russian investment in Armenia.

The World Bank

The World Bank has been working with both the government and private sector on infrastructure projects in Armenia. Due to a stagnant economy, much of this is not only aimed at improving the basic living conditions for Armenians but also at increasing job creation. By building and improving infrastructure, the government and the World Banks hopes to create jobs in the construction sector through government and private programs.

For example, in December 2015, the World Bank approved a $55 million local economy and infrastructure project. The project was aimed at both improving municipal infrastructure to increase the standard of living as well as to protect and sustain cultural heritage sites in order to boost tourism. The project end date is in 2021.

The European Bank

Infrastructure projects in Armenia are also funded by The European Bank for Reconstruction and Development. The EBRD has funded 171  projects in Armenia to the tune of 1.24 billion Euros since Armenia joined in 1992. Of the current 309 million Euros the EBRD is funding for projects in Armenia, 21 percent is going towards infrastructure projects. This includes improving municipal and urban transportation infrastructure.

This money is not only going to roads, rails and vehicles but it is also being invested in improving how commuters pay for transportation. This includes modernizing the ticket system. By making it easier and cheaper for people to purchase tickets for buses and trains, more tickets will be bought and fewer people will hop on for a free ride. The EBRD is also financing greener infrastructure projects in Armenia. At least 23 percent of the funding is going towards the energy market.

Paying It Forward

Despite the help with infrastructure projects in Armenia that the country is receiving to boost its economy and infrastructure, the nation is also giving. In 2015, the Armenian government donated 1 million Euros to the Eastern European Energy Efficiency and Environmental Partnership. Although Armenia also receives funding and expertise from this organization, so do many of its lost family of ex-soviet states. Armenia’s 2015 donation possibly went on to light homes in another country facing a similar situation.

– Nick DeMarco

Photo: Flickr