Archive for category: Economy

Information and stories about economy.

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Top Ten Facts about Quality of Life in Iceland

Quality of Life in IcelandSituated about 400 miles west of Greenland in the northern Atlantic, Iceland is a mid-sized island with a population of around 340,000. Given its high latitude, Iceland’s climate is unexpectedly temperate. Its dramatic landscapes draw millions of tourists each year from around the world. Iceland is governed by parliamentary democracy and has a strong tradition of center-left politics.

Top Ten Facts About Quality of Life in Iceland:

Gender Equality

Iceland has consistently held the number one spot in the World Economic Forum’s Gender Gap index over the past several years. An article published by The Guardian in 2016 traces this back to a time where Icelandic men would leave their villages for long hunting trips, leaving the women to take charge of the key political and economic decisions in their absence.

Strong Economy

Although hit badly in the 2009 global recession, Iceland has since bounced back, and now ranks among the wealthiest countries in the world. According to data from Focus Economics, Iceland ranked fourth highest in the world for GDP per Capita in 2017.

High Life Expectancy

With a life expectancy of 83.1 years at birth, Iceland ranks seventh in the world for this metric. Iceland also has very low infant mortality rates at just 2.1 deaths out of every 1000 births.

High “Subjective Happiness” Levels

According to the World Happiness Report, ranking each country according to “subjective happiness” indicators, Iceland comes in at number four, behind Finland, Norway and Denmark. The authors of the report argue that the happiness scores—generated from survey results—closely follow six quality of life indicators. These factors are GDP per capita, social support, healthy life expectancy, generosity, freedom and absence of corruption.

Low Exposure to Sunlight

Despite its high World Happiness score, Iceland has the 40th highest suicide rate of any nation on earth with 14 suicides for every 100,000 of the population. Iceland’s Nordic neighbors Sweden, Finland and Norway all have high suicide rates despite impressive scores in other quality of life indicators. These numbers led some to draw a link between suicide and low exposure to sunlight during the winter months.

Low Poverty Risk

According to data collected in 2016, less than 9 percent of Iceland’s total population is at risk from poverty, which is about half the combined rate for the 28 countries that make up the European Union.

Political Corruption Rates

Although Iceland suffers from low political corruption compared to global averages, corruption levels in Iceland are the highest of all Nordic states, and recent reports suggest they are growing worse. During her election campaign in late 2017, Prime Minister Katrín Jakobsdóttir spoke about rebuilding trust after two years of political instability preceding her administration.

Education Quality

Although education in Iceland is funded entirely by the state, from preschool to university, one international education survey calls its quality into question. According to test results collected from 45 countries by the Organisation for Economic Co-operation and Development (OECD), Icelandic children scored below the group averages in math, science and reading.

Homelessness

Despite having one of the world’s most generous welfare systems, Iceland is reportedly struggling with a growing homelessness problem. According to one study, the number of homeless people living in Reykjavik—Iceland’s capital—nearly doubled between 2012 and 2017 from 179 to 349, or about three out of every thousand.

Healthcare

Iceland has a nationalized healthcare system that is largely tax-funded. A recent study ranked the Icelandic healthcare system second in the world, based on a review of comprehensive criteria.

The combination of market forces with a generous welfare system crafted a model that secures a high quality of life in Iceland for the majority of its citizens. But a closer look into Iceland’s education, corruption and homelessness problems shows that even the most affluent and equitable societies carry their share of problems. Historically, Iceland has found success by addressing society’s problems collectively— continuing this approach will serve it well in the future.

– Jamie Wiggan
Photo: Flickr

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The Role of STEM in Developing Countries and Potential Benefits

Role of STEM in Developing CountriesScience, Technology, Engineering and Mathematics are important for building and maintaining the development of any successful country. From the medical scientists, who develop treatments for diseases, to the civil engineers, who design and build a nation’s infrastructure, every aspect of human life is based on the discoveries and developments of scientists and engineers. The importance of STEM today should not be underestimated as its role is becoming increasingly significant in the future. The technology produced today is altering people’s lives at a rate faster than ever before. Consequently, it is vital for countries seeking to reduce their poverty levels to adopt new scientific research and technology. In doing so, these countries can improve their economy, health care system and infrastructure. As this impacts all aspects of society, the role of STEM in developing countries is of significant importance.

STEM and Economic Progress

STEM education fosters a skill set that stresses critical thinking and problem-solving abilities. This type of skill set encourages innovation among those who possess it. Similarly, a country’s economic development and stability are dependent on its ability to invent and develop new products. Technological innovation in the modern age is only obtainable through the expertise of specialists with knowledge of recent STEM research. Therefore, the role of STEM in developing countries is important because a country’s economy is completely dependent on new developments from technology and science.

Overall, the economic performance of metropolises with higher STEM-oriented economies is superior to those with lower STEM-oriented economies. Within these metropolises, there is lower unemployment, higher incomes, higher patents per worker (a sign of innovation), and higher imports and exports of gross domestic products. According to many experts, this holds true at a national level as well. The world’s most successful countries tend to efficiently utilize the most recent scientific developments and technologies.

In recent years, there is a major increase in the number of science and engineering degrees earned in India. India now has the largest number of STEM graduates in the world, putting the country on the right track for economic development. This has led to widespread innovation in India and a consistent increase in its gross domestic product. The role of STEM in developing countries can thus improve its economy. As of early 2019, India has seen an increase of 7.7 percent in its total GDP.

STEM and Health Care

Over the past 50 years, the Western world has made remarkable progress in medical science. With new breakthroughs developed through vaccinations and treatment, many serious diseases in developing countries are now curable. Common causes of death for children in developing countries are diseases such as malaria, measles, diarrhea and pneumonia. These diseases cause a large death toll in developing countries, but they have been largely eradicated from developed countries through proper vaccinations. As a result, these diseases take a large toll on the children of developing countries. In developing countries, a high percentage of the population is under 15 years of age. As such, it is important to prevent diseases that affect children under 15.

Lately, Brazil has seen an epidemic level of yellow fever which has resulted in numerous deaths. Brazil has addressed this by implementing a mass immunization campaign. In particular, this program will deliver vaccines to around 23.8 million Brazilian citizens in 69 different municipalities. The role of STEM in developing countries with preventable diseases will be vital to improving health and life expectancy rates.

Engineering and Infrastructure

Engineers build, create and design machines and public works to address needs and improve quality of life. Engineers construct and maintain a nation’s infrastructure, such as its fundamental facilities and systems. This includes roads, waterways, electrical grids, bridges, tunnels and sewers. Infrastructure is vital to a country, as it enables, maintains and enhances societal living conditions.

Subsequently, poor infrastructure can seriously hinder a nation’s economic development. This is the case in many African countries. Africa controls only 1 percent of the global manufacturing market despite accounting for 15 percent of the world’s total population. Ultimately, poor infrastructure, such as transportation, communications and energy, stunts a country’s ability to control a larger share of the national market.

Afghanistan has improved its energy infrastructure, using a large portion of the assistance received from the U.S. Through this effort, they have been able to reduce electricity loss from 60 percent to 35 percent. Consequently, they have improved long term sustainability and created a reliable energy system for their citizens. The role of STEM in developing countries is important on a large scale, improving infrastructure to impact their citizens’ daily lives.

STEM and the Future of the World

Societies seeking new scientific knowledge and encouraging creative and technological innovations will be able to properly utilize new technologies, increase productivity, and experience long term sustained economic growth. The developing societies that succeed will be able to improve the living standards of its population. As our world becomes more interconnected, countries prioritizing STEM education and research will make significant advances in alleviating poverty and sustaining economic, cultural and societal growth. Undoubtedly, the role of STEM in developing countries is of significant importance, just as it is in our modern world.

– Randall Costa
Photo: Flickr

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Tourism’s Effect on the Greek Economy

Greek EconomyIn May 2010, Greece experienced its first economic bailout from the International Monetary Fund and the European Union to rebuild the Greek economy. As a result, Greece was given $146 billion in loans. Greece suffered economic frailty, in part from hosting the 2004 Olympic Games, the global economic crisis, and switching to the euro. Then, in August 2018, Greece received its final loan from European creditors. This loan signaled the end of the bailout program that began in 2015. To work toward financial security, Greece has committed to running a budget surplus until 2060 and accepting continued support from the EU.

Despite this financial turmoil, tourism presents a bright light for the Greek economy in increased revenue. Tourists’ interest in Greece began to boom during the 2004 Olympics, held in Athens. Although the Olympics have been cited as the main cause of the economic crisis in Greece, tourist industries in Athens were surveyed and concluded “the Games upgraded the validity of Athens on the international tourist market.” Since the 2004 Olympics, Athens, on average, has lengthier tourist stays than other major urban destinations, such as Paris and Barcelona. Athenian hotels have also become more efficient since the Games. And ticket purchases for historical sites have also seen an incline.

Tourism Helps the Greek Economy

This surge in tourism has sparked a large revenue intake for the Greek economy. In 2018, travel services in Greece reported an intake of 16 billion euros, approximately $18 billion, up 14 million euros since 2017. They attribute this surplus to a 40 percent increase in travel receipts and a 53 percent increase in travel sales. That year, the effect of tourism on Greece’s gross domestic product was an estimated 20.6 percent, reaching $44.6 billion. In fact, this is double the global average of 10.4 percent. This means one out of every five euros spent in Greece stems from travel and tourism.

Greece is happy with how tourism initiatives have been implemented in the past several years. The country also acknowledges 988,000 jobs lie in its tourism and travel industries. In 2019, Greece expects this job market to reach 1 million jobs. As such, travel and tourism is the largest employer in Greece. Minister of Tourism of the Hellenic Republic Elena Kountoura has noted Greece’s plan for the continued growth of the tourism sector: “We intend to maintain Greece’s strong momentum in tourism and maximize its benefits for the local communities across Greece, acknowledging tourism’s immense value as a major driving force for employment, economic and social prosperity.”

The reparation of the Greek economy has developed a dependence on tourism and travel. From the deep blue waters of the Aegean Sea to historical sites such as Delphi, people from all over the world flock to witness a small piece of Greece’s beauty. What they may not realize, however, is they are working to support an economy on the mends. And the positive effect of tourism will continue to increase annually, as Greece works toward financial stability.

– Claire Bryan
Photo: Flickr

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Understanding Hunger in South Africa

Hunger in South AfricaFood insecurity plagues approximately 14 million South Africans. Poverty and unemployment are the two leading contributors of hunger in South Africa, caused in part by the 2008 global economic crisis, which limited job creation opportunities and the purchasing power of South African households. The nation’s economy has also been stagnant, at a growth rate of 3.3 percent since 2011 and shows little signs of improvement. In 2006, 28.4 percent of the country’s population was living in extreme poverty. In 2015, the rate had only decreased to 25.2 percent.

Causes of Hunger

Other factors of poverty include the legacy of apartheid. Apartheid barred black individuals from a proper education system and thus skilled and higher paying occupations. South Africans also seem to display a sense of disinterest in entrepreneurship, given the lack of investment within the business space. High food and fuel prices, high-energy tariffs and increasing interest rates further exacerbate hunger within the nation, as households are struggling to meet basic needs.

Solutions for Hunger

In hopes to mitigate hunger in South Africa, several initiatives have been taken. For instance, Dr. Louise Van Rhyn founded Partners for Possibilities in 2010. Partners for Possibilities is a leadership development program focused on using grassroots and cross-sector collaboration efforts to help teachers and business leaders. The program pairs a business leader as a co-partner to a school principal. By forcing them to adapt and learn to lead a complex and unfamiliar environment, business leaders gradually develop leadership capabilities in the process. The principals learn to work with other individuals, as well as a partner to help them better manage under-resourced schools.

This approach not only improvement schools, spurs individuals to be involved in a business, but it also empowers individuals to succeed in their careers, strengthening South Africa’s education system, economy strengthening households from hunger and food insecurity.

Major international nonprofits such as the World Health Organization have invested in millions of dollars on food aid programs. Often times, even though there is food in markets, it is not necessarily available. Thus, these programs compensate for the lack of access. CARE is another major organization that has been trying to limit hunger in South Africa. Their programs focus on the nutrition specific needs of fetal and child development, as well as home-based practices, making them easy to follow for households of various conditions. One of their most notable developments is the creation of the integrated model: Collective Impact for Nutrition. This particular model was established after 10 years of programming where “key nutrition-sensitive interventions support a core nutrition-specific behavior-based approach, ensuring not only the promotion of improved nutrition practices but also helping to provide the necessary foundation for adopting them.”

Ultimately, hunger in South Africa is a complicated issue, as there are many factors at play. From high rates of unemployment, lack of accessibility to food markets and economic instability due to a lack of education, its difficult to resolve hunger. Recent statistics have shown there has been some improvement in the nation’s economy, though small. For these reasons, it is vital the organizations on the ground continue their efforts to limit hunger within South Africa.

– Iris Gao
Photo: Flickr

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10 Facts About the Economy of the Republic of Buryatia

the Economy of the Republic of BuryatiaIn the Far East of the Russian Federation lies a vast region characterized by a diversity of topographical features and a rich ancient history. The remote Republic of Buryatia increasingly serves as a regional economic powerhouse, rich in natural resources and human capital. Below are 10 facts about the economy of the Republic of Buryatia.

10 Facts About the Economy of the Republic of Buryatia

  1. The Republic of Buryatia is seeing a gradual decline in absolute population numbers. A 2016 census recorded 983,209 people in the republic in 2017. This is down from a total population of 1.02 million in 1997. A shrinking population may lead to adverse consequences for the economy of the Republic of Buryatia.
  2. Both industrial and agrarian means of production are well represented in the economy of the Republic of Buryatia. Forestry, food production, fuel and power, construction, the paper industry and the processing of both metal and wood account for the vast majority of industrial production. Mining operations explore, develop and extract coal, gold and non-magnetic metals. Agricultural operations feed much of the Russian Far East by producing dairy, meat, flour, cereals and animal feed.
  3. The cumulative value of exports from the Republic of Buryatia for the second quarter of 2017 measured approximately $374 million. A persistent decline in revenues from total exports began in 2012 though it has been subject to significant oscillations. In contrast, the republic imports $28 million worth of goods. The value of imports year to year exhibits some instability but still indicates a general decline over five successive years.
  4. The energy sector of the Republic of Buryatia relies greatly upon the region’s abundant coal reserves. Balance reserves totaling approximately 2.6 billion tons alongside deposit reserves of more than 1.1 billion tons may adequately supply the regional economy for another half-century. The government’s asset records attest to 13 brown and hard coal deposits subject to processing with another six undergoing development. 
  5. Despite the vitality of the coal sector, a decline in the demand for electricity may hinder the economy of the Republic of Buryatia. Power plants satisfy local requirements so much so that the republic exports electricity to neighboring regions like Mongolia. However, electricity consumption by the republic’s forestry and agricultural sectors remains low compared to the transport, communications and power plant sectors. Electricity use in 2017 was substantially lower than in the 1990s.
  6. In 2017, the unemployment rate was 5.2 percent of the population in Russia. That same year, unemployment in the Republic of Buryatia affected 9.6 percent of the region’s population. But this most recent statistic is part of a systematic downward trend in the region’s unemployment rate. From a high of 17.8 percent unemployment in 2003, the decline to a 9.6 percent employment rate in 2017 attests to a steady improvement in this sphere of the economy of the Republic of Buryatia.
  7. The poverty rate in the Republic of Buryatia significantly oscillates year to year, yet data indicates a general decline in poverty. In 2015, 17.9 percent of the republic’s population lived beneath the poverty line. According to data collected in 2014, the average impoverished person in the Republic of Buryatia requires an income increase of 1.9 percent to meet minimum subsistence levels. 
  8. The freshwater reservoir Lake Baikal plays an essential role in the economy of the Republic of Buryatia. Measuring 636 kilometers across and 80 kilometers wide, Lake Baikal hosts an estimated 250 unique animal species out of an approximate total of 2,500 local species. Besides the diverse biome, rich mineral deposits abound. Half a century of development in the Lake Baikal region yielded more than 700 mineral reserves. 
  9. Individually-owned farms comprise 83 percent of the Republic of Buryatia’s total crop production. By contrast, only 57 percent of the total crop production of the Russian Federation emerges from farm households. However, only 11 percent of the total land of the republic belongs to individually-owned agricultural operations.
  10. In 2015, the rural demographic of the Republic of Buryatia numbered 402,520 people. The following year, the rural demographic rose 0.29 percent to 403,698 people. The urban demographic consisted of 579,511 people in 2016, a 0.28 percent increase from the previous year. Though comprising 58.9 percent of the republic’s population, data indicates a steady decline in the urban population from 1997 onward.

Though some data indicates that the economy of the Republic of Buryatia faces considerable obstacles, the general picture of the region is one of economic vitality. As a resource-rich region with a productive population, the future may bode well for this remote corner of the Russian Federation.

– Philip Daniel Glass
Photo: Flickr

10 Contributors to Turkey’s Rising Economy

10 Contributors to Turkey’s Rising Economy

Turkey has one of the fastest growing economies in the world today. Turkey’s rising economy came after the economic and banking crisis that occurred in 2001. Turkey’s economy is growing and will continue to improve over the next several years. The following are 10 aspects that have contributed to the Turkish economy’s growth:

  1. Trade With Africa
    Over the past 15 years, Turkish and African trading has increased over 600 percent to over $17 billion USD. Trading with Africa has brought a substantial amount of money into Turkey and has created countless jobs for the country’s rising economy.
  1. Turkish Airlines and Boeing Deal
    Turkish Airlines has made a deal with Boeing to purchase 25 Boeing 787-9 Dreamliner aircraft, which will help Turkey meet demand in their country. M. İlker Aycı, Turkish Airlines’ Chairman of the Board and the Executive Committee, said, “We are pleased to finalize a landmark agreement that will bring significant benefit to Turkish Airlines and Turkey’s aviation industry.”
  1. Middle Class Growth
    In the past several years, the size of Turkey’s middle class has doubled; it increased from 18 percent to just over 40 percent. This is one of the biggest contributors to Turkey’s rising economy. The growth of the middle class has helped Turkey strive toward becoming an upper-middle income economy.
  1. Growing Tourism
    In the past decade, travel to Turkey has increased tremendously. In 2017 Turkey was ranked the sixth most-visited country and was ranked ninth in income from tourism. Turkey is most visited by Europeans, and tourists frequently visit Antalya, Istanbul and Mugla. These areas make up 70 percent of the places visited in Turkey.
  1. Privatization
    The government of Turkey has been attempting to privatize many sectors in the country. They aim to limit the role of the government to health, education, social security, national defense, and infrastructure. Increasing the size of the private sector has created a highly competitive market that has improved Turkey’s economy. From 1986 to 2003, the revenue for privatization reached only $8 billion; by contrast, revenue from 2004 to 2015 reached approximately $58 billion. In addition to creating a competitive market, privatization has created many jobs throughout the country.
  1. Employment Increase
    1.5 million more people became employed from November 2016 to November 2017 in Turkey, and the labor participation rate of women increased to 33.8 percent. The unemployment rate for the youth in Turkey also decreased by 3.3 percent. This job growth has stimulated the economy and contributed to its growth.
  1. The Turkey Sustainable Cities Program
    The Sustainable Cities program consists of two parts. The first part was approved in 2016, and the second was approved in April of 2018. These programs provide investment financing and technical assistance. The investment financing is used for public projects such as municipalities for water, wastewater, solid waste, energy efficiency and street lighting. The goal of this program is to improve the economic, financial, environmental, and sustainability aspects of cities in Turkey. This will improve Turkish cities while also providing jobs for many people in Turkey.
  1. Increasing Foreign Trade
    Turkey’s exports have continued to increase over the past few years, and the increase is estimated to continue. In 2016, Turkey’s exports totaled $143 billion, and exports are estimated to reach $193 billion by the year 2019.
  1. Contracting Abroad
    The construction sector in Turkey is one of the biggest in the world, just after China. The first foreign project took place in the 1970s, but such projects have increased greatly since then. From 2008 to 2017, Turkey engaged in more than 4,000 construction jobs abroad, equal to approximately $220 billion. This nine-year period accounts for 64 percent of all foreign contracting jobs taken by Turkey in 45 years. The cost of these projects has also increased. In 2008, the average project cost $37 million, but by 2017 this average had risen to roughly $79 million. Contracting abroad has greatly increased jobs and contributed to the rising economy in Turkey.
  1. Rapid Growth
    In 2017, the Turkish economy grew by 7.4 percent, meaning it expanded faster than both India and China. Turkey’s economy was ranked as the fastest-growing economy in the group of G-20 nations.

There are still many improvements to be made throughout the country. However, Turkey’s rising economy shows that the country has made great strides toward becoming an upper-middle income country. The people of Turkey have successfully reduced poverty, decreased unemployment and increased the overall living conditions in their country.

– Ronni Winter
Photo: Flickr

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US Benefits from Foreign Aid to Guinea

U.S. Benefits from Foreign Aid to Guinea
Guinea is one of the world’s most impoverished countries. More than half of its population lives below the poverty line and 17.5 percent struggle for food security. In 2010, Guinea established its first elected, civilian government. The U.S. benefits from foreign aid to Guinea and its strong economic potential. Assistance with Guinea’s health, stability and effective governance is not only deeply needed by Guinea, but also something from which the U.S. ultimately gains.

Strong Economic Potential

Guinea has rich mineral resources, possessing over half of the world’s bauxite (aluminum ore) reserves. The country is also abundant in high-grade iron ore, diamonds, gold and uranium. The mining sector in Guinea is thus a major part of its economy: about 80 percent of Guinea’s foreign exchanges consist of joint-venture bauxite mining and alumina operations. Compagnie des Bauxites de Guinee (CBG), one of the major two routes for exporting Guinea’s bauxite, is a venture jointly owned by the Government of Guinea, a U.S. company called Alcoa, and an Anglo-Australian company Rio Tinto Group. The other major export force is Chinese conglomerates as well as small and midsize business.

Guinea is also blessed with reliable rainfall, abundant sunshine and natural geography that are favorable for renewable energy. The 240MW Kaleta Dam project, constructed and financed by China, began operating in 2015 and has since more than doubled Guinea’s electricity supply. The country’s climate means that it has great potential for commercial agriculture as well.

Investment Friendly

Pressed to improve development, Guinea has been increasingly open to foreign investment. The country’s government has been depleted of financial resources to improve the economy, especially since the Ebola outbreak in 2014-2015. Meanwhile, enterprises in Guinea are in need of more credit than is available.

In 2016, the government launched a new website via the Investment Promotion Agency of Guinea (APIP). The website is meant to promote transparency and help make investments more smooth. The APIP also offers services to foreign investors, including creating and registering businesses, helping with access to benefits of the new investment code, providing information and research studies to interested investors, etc.

The Guinea government does not allow any foreign investor to own media in the country, but besides that, there are no restrictions discriminating against foreign investors. The U.S. also helped a group of foreign investors in Guinea and the government of Guinea form a liaison in 2015.

Barriers to Overcome

While Guinea has extremely investment-friendly laws, the enforcement of those laws needs a stable political environment and a reliable legal system. It is worth noting the country had its first democratically-elected government in 2010 after the country’s independence in 1958, but state institutions are still recovering from two years of rule by the military junta. It’s also faced a number of security and socio-economic vulnerabilities.

Guinea has a disproportionately large military with serious, deep corruption and human rights abuses. It is also feared by law enforcement because of the potential for military revolt. Even though a panel was formed in 2010 to investigate the violent crushing of tens of thousands of peaceful democracy protesters in 2009, two military commanders that the U.N. revealed to be guilty were able to keep their government positions.

Aid for Stability and Development

U.S. foreign aid would directly address barriers to private sector growth as well as improvement of economic life in Guinea in general. For one thing, the U.S. supported the 2010 election process significantly, which has greatly improved the country’s development prospects.

U.S. foreign aid was restricted in 2008 and 2009 due to the rise of the military coup at the time, but restrictions were lifted after the country’s political transformation. Aid from the U.S. helps improve democratic practices, governance, security sector reform, regional peace and stability, etc. These aspects of society are essential for the alleviation of poverty and the establishment of a solid economic infrastructure. A peaceful Guinea is also viewed as significant for restraining conflict in a region already plagued by political tension and armed struggles.

The Consortium for Elections and Political Process Strengthening, supervised by the USAID, supported the 2015 presidential election and 2018 communal elections. It strengthened Guinea’s Independent National Electoral Commission as well as civil society organizations in monitoring the domestic election.

Ultimately, U.S. foreign aid will assist with areas of life in Guinea that in turn presents a great economic potential for the U.S. In other words, the U.S. benefits from foreign aid to Guinea.

– Feng Ye
Photo: Google

Everything to Know About Tanzania’s Improving Economy

Tanzania's Improving Economy
The African country of Tanzania has a population of 53 million people, and it is estimated that around 70 percent of its people live in poverty. Although this constitutes a large amount of their population, the economy is improving and poverty is slowly decreasing. In fact, the economy in Tanzania has vastly improved over the last decade, averaging more than 6 percent growth a year. These improvements have come from many changes within the country.

Improvement in Corruption

There was a new government elected in 2015 that promised they would fight corruption within the government. In 2015, around 72 percent of Tanzanians said that corruption has been declining when compared with the previous year. In addition, 71 percent of citizens believe the government is doing a better job fighting corruption overall.

Improvements in Agriculture

Advancements in agriculture over the past few years has also helped Tanzania’s improving economy. Agriculture is one of Tanzania’s leading largest contributors to the GDP, at 30 percent, and it makes up 67 percent of the workforce. USAID has been working in Tanzania to help improve their agricultural sector. They have expanded irrigation and provide better access to the market through the reduction of transport costs for equipment and other important agricultural products. Tanzania has now become more competitive in domestic and regional markets.

Increasing Tourism

Tourism is the number one earner of foreign currency in Tanzania. In 2017, the tourism industry in Tanzania was ranked one of the fastest growing sectors in East Africa. From 2015 to 2016, there was a 15 percent increase in the number of tourists that visited Tanzania. This has helped with Tanzania’s improving economy by providing jobs and bringing in revenue to the country. In 2015, $2.9 billion had been earned from tourism, which was greatly increased by 30.4 percent in 2016 to 3.8 billion.

Growing Urban Middle Class

Around 10 percent of Tanzania’s population is a part of a small urban middle class. Although it is a small percentage of the population, it is growing at a steady rate as a direct result of Tanzania’s improving economy. Over the past few years, this group has gained political influence, purchasing power, and started to demand cheaper electricity, imported goods and improved urban social services and infrastructure. This growing middle class has motivated the government to work harder for their demands as well as for improved conditions throughout the country.

Reforms in Education

Over the past several years there have been many changes and improvements in education in Tanzania. This includes greater access to secondary education for both male and female students. This has had a large impact on Tanzania’s improving economy. Tanzania is one of the only low-income countries that has almost achieved universal access to primary education; however, there are still many obstacles keeping children from getting a good education.

Global Giving is attempting to change the lives of many children in Tanzania by placing technology in their schools to help them master their curriculum. Tanzania’s schools lack all resources, including teachers, which makes it very hard for students to learn, finish school and enter the workforce. Global Giving donates raspberry pi computers that already contain important math and science curriculum, along with tablets, laptops and phones for that can also be used to access the curriculum. Global Giving has improved the quality of education for many students in rural areas in Tanzania, which will improve their quality of life and prepare them to enter into a skilled workforce in their country.

Although there is a lot of work left to be done in reducing poverty and growing the economy of Tanzania, these are some of the important ways that the country has been improving over the past decade. A new government, advancements in agriculture, increasing tourism, a growing middle urban class and reforms in education have all had a positive effect on the economy in Tanzania.

– Ronni Winter
Photo: Flickr

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The Economic Benefits of Education

The Economic Benefits of Education
The notion that education and economic growth hold a relationship with each other is not a new idea. However, what is the extent of this relationship? What role does education play in development? And finally, what are the exact economic benefits of education both in the U.S. and abroad?

The Economic Effects of Education

According to the World Bank, one of the pivotal benefits of education is labor market earnings. Workers with more education earn higher wages than employees with no post-secondary education. Those with only a high school degree are twice as susceptible to unemployment than workers with a bachelor’s degree. Median college-educated workers earn 84 percent more than those with only a high school education. Additionally, workers with some college education but no completed degree earn 16 percent more than only high school trained employees.

Education’s value in the economy is also evident in the notorious fall of manufacturing jobs. The loss of 9.3 million manufacturing jobs among non-college educated workers has been strenuous. However, workers with some college education have gained 2.5 million manufacturing jobs.

There is significant data reflecting the education of the majority of technologically-oriented job holders. In fact, 92 percent of patent inventors have a bachelor’s degree and 92 percent of high-tech companies behind the growth of GDP are college educated as well.

The economic benefits of education are undeniably important to the U.S. In the country alone, GDP has potential to increase by $32 trillion, or 14.6 percent if all students are brought up to basic mastery by the National Assessment of Educational Progress standards. Intensive efforts at test score maximization for students in a handful of states with highest economic performance in the U.S. can increase GDP by $76 trillion over approaching decades. Furthermore, improvements in education according to spending on K-12 schooling is said to reap more improvements from investment than the burden of the cost.

The Return on Investment (ROI) of Education

Above the economic benefits of education is an ROI that investors cannot overlook. The global rate of ROI in schooling is approximately 10 percent for primary education, five percent for secondary education and 16 percent for university education. Social ROI of education for the world is 18.9 percent for primary education, 13.1 percent for secondary education and 10.8 for higher education. Finally, private ROI of education for the world is 26.6 percent for primary education, 17 percent for secondary education and 19.0 for higher education.

It is worth noting that girls have higher ROI for secondary education at 18 percent while boys have 14 percent. However, boys have higher ROI for primary education than girls, 20 percent versus 13 percent. Latin America, the Caribbean and Sub-Saharan Africa have the highest ROI on both social and private education. Overall, another year of education raises earnings by 10 percent a year. The 10 percent ROI for education investments is higher than alternatives: 1.4 percent for treasury bills, 5.3 percent for treasury bonds, 4.7 percent for savings accounts, 3.8 percent for housing and 7.4 percent for physical assets.

Next Steps Forward

The economic benefits of education are clear for the entire globe. Nevertheless, there are further steps to maximizing productivity and reaping even more economic benefits of education.

  1. Increase investment in the quality of primary schooling, given that primary education has expanded exponentially already
  2. Promote educational efficiency in policy through policymakers and government
  3. Reform school management systems and implement more effective performance metrics
  4. Implement more effective and fair approaches to school funding
  5. Report more data on school performance

Education has the power to uplift a country and establish a healthy, efficient economy. It has also played a pivotal role in the increase of productivity and wages amongst workers and proved to be a successful endeavor for investors. Fortunately, there is much more potential within education to help the world to flourish.

– Roberto Carlos Ventura
Photo: Flickr

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A Journey to Stay: Migration and Industry in the South Pacific

A Journey to Stay: Migration and Industry in the South Pacific
Migration led to the population of the South Pacific Islands, along with innovation to sail against the wind. The islands developed a unique history, language, and culture and migration and industry built the South Pacific nations. There are challenges facing the islands, but people are rising up to face them. 

What are the South Pacific Islands?

The South Pacific includes about 10,000 islands located in the South Pacific Ocean that, based on their ethnic geographic history, can be further broken down into Melanesia, Micronesia and Polynesia. 

About 3,400 years ago, people left land and started sailing, and the wind brought these new settlers to many remote islands such as Tonga, Fiji and Samoa. Eventually, this exploration stopped for about 2,000 years due to a lack of technology to sail against the wind. Once the technology was developed, many continued their migration and industrialization in the South Pacific to explore and settle the rest of Oceania to Tahiti, Hawaii and New Zealand.

From the 16th to 18th Century, the Europeans began to make infrequent and accidental discoveries of the islands that helped add to the narrative of wealth in unknown lands. It was not until the 18th Century that Europeans began an organized colonization effort in the South Pacific Islands. By 1980, most of the South Pacific Islands had reached independence.

Recent Migration

The general consensus is that people are happy on the islands and few leave unless searching for work or education. However, due to an increase in dangerous weather and rising seas, many are faced with a possibility of being forced out. An estimated 10 tropical cyclones are predicted to hit the islands between November and April each year.

While, there is no international law that recognizes people leaving on account of weather changes, talk of a new refugee has begun. On Tuvalu, it is estimated that migration will increase 70 percent by 2055, and already about 23 percent of citizens on Kiribati have migrated due to climate stressors, 41 percent for work and about 40 percent may migrate if flooding or climate changes worsen.

Business

Many of the islands face similar challenges — islands possess limited natural resources, a distance from larger markets and a greater susceptibility to external factors such as natural disasters. Despite these challenges though, tourism and other businesses are becoming a strong reality for many.

Larger islands such as Fiji, Samoa and French Polynesia have already begun to build a strong tourism industry. Fiji, in particular, is partnering its tourism with oceanic sustainability — a priority for many. Some tourism operators engage tourists with local communities by bringing them to view the Shark Reef Marine Reserve or visit villages away from the popular resorts.

Leaders in the Pacific Islands encourage entrepreneurialism, but efforts in the past have had mixed results, often beginning with loans and ending with shut-downs due to lack of payment. Currently, a refocus on education and training has started to take place, and informal polling has pointed out the importance of community in building businesses and highlighted microfinance for the future.

Migration and Industry in the South Pacific

Migration and industry in the South Pacific work to change islanders’ lives for the better. Australia still looks at many Pacific Islands as recipients rather than providers, which often detracts from viewing these islands as loci for businesses. To combat this perception, the Australian government is challenging financial institutions to sign a memorandum that will promote private sector development through financial inclusion.

Migration and industry in the South Pacific are of key importance. The islands are faced with finding their innovative selves to develop businesses and new technologies to avoid migration.

– Natasha Komen
Photo: Flickr