Archive for category: Economy

Information and stories about economy.

, ,

10 Facts About Poverty in Russia

Poverty in Russia
Almost 145 million people live in Russia. Despite placing emphasis on unity, some enjoy a much higher quality of living than others. This is evident in the country’s large income discrepancy, and the accompanying poverty in Russia. Below are 10 facts about poverty in Russia:

1. Poverty is on the Rise in Russia

In the early 2000s, income levels increased in Russia and drove down the poverty rate from 29 percent in 2000 to 10.7 percent in 2012. Unfortunately, the income levels didn’t remain and the poverty rate has grown slowly back to 13.5 percent in 2016.

2. Oil is Partly to Blame

One of the greatest threats to the Russian economy has been decreasing oil prices. In a country that greatly depends on oil, a shift in prices can be catastrophic. Given the falling oil prices over the past few years, from more than $100 per barrel to less than $30, Russia’s economy is vulnerable. Although there has been modest improvement as barrel prices are now at $60.

3. Agriculture is Also at Fault

As a country with vast amounts of tundra, agriculture is not a prime industry in Russia. Soil that lacks productive capabilities places a limit on economic expansion. Although Russia plays to its strength with oil, decreasing its dependency is a must. Diverse industries create jobs – something that could help alleviate poverty in Russia.

4. Wealth Inequality is Common

Wealth inequality exists in both developing and developed countries; including the U.S. Russia is no exception. The richest 10 percent of Russia’s population control three-fourths of wealth. This raises flags for a country with a rising poverty rate. With a dwindling middle class, Russia faces a problem on the horizon. Improving wealth distribution will take a creative solution.

5. President Putin has Vowed to Help

Acknowledging the issues that many Russians face, Vladimir Putin committed to improving conditions. He mentioned nearly 20 million Russians are living below the poverty line and promised to cut the number in half by 2024. Some had concerns that the plan lacked specific methods of action. Regardless, starting a conversation on poverty in Russia is a step in the right direction.

6. Rural Areas can Offer Relief

Russian citizens in rural areas often enjoy a better quality of life. Due in part to the wealth inequality that plagues the country, city living can be expensive. For this reason, those living in rural parts of Russia often experience less poverty than in the city. Rural living is beneficial in Russia; despite the country’s lack of agricultural capabilities.

7. The Future Remains Unclear

As a whole, the economic future of Russia is hard to predict. Poverty can be a direct result of economic conditions. In a country like Russia, this principle holds true. Growth in key industries is slow. With bankruptcy being commonplace in many regions of Russia, the time for the country to act is now.

8. Slow Economic Conditions Inspire Change

One positive of a struggling economy is the Russian government’s shift toward improvement. Adopting a pro-growth policy, the Russian government has launched infrastructure improvements. When paired with methods to fight poverty, this could lead to success for Russia.

9. Russia Needs Political Advocacy

As one of the most powerful methods of change a country has, utilizing politics can help Russia. An absence of a cohesive strategy to combat poverty is a key reason for Russia’s struggle. Developing and executing a policy on a national level has achieved success elsewhere. Local, regional and national policies could provide a piece to Russia’s poverty puzzle.

10. The Road to Poverty Reduction Could be Long

Russia’s economic woes might not see a quick resolution. The country’s economy is slow to change with the rest of the world. And with oil prices still below what they were during prosperity, Russia needs to adapt. Until it does, poverty in Russia will continue to be a problem.

– Robert Stephen

Photo: Google

, ,

How Economic Inequalities Harm Societies

How Economic Inequalities Harm Societies
The idea that economic inequalities are socially corrosive has been around for decades. But there now exists statistical evidence substantially supporting the notion.

Since Richard Wilkinson’s enlightening TED talk presented the impact of income gaps and unequal societies on the wellbeing of both the rich and the poor, the issue has received unprecedented attention. A professor emeritus of social epidemiology, Wilkinson based his results upon statistical data, presenting conclusive, irrefutable evidence to prove how economic inequalities harm societies.

He chose widely accepted parameters of quality of life to draw the comparison between societies. These parameters include:

  1. Life expectancy
  2. Infant mortality
  3. Teenage births
  4. Imprisonment
  5. Obesity
  6. Mental illness
  7. Social mobility
  8. Homicide
  9. Math and literacy

However, the 15-minute presentation focused on developed countries only. Other studies in the recent past have revealed a similar pattern in developing and impoverished economies. In nations like India and China, where glaring income gaps continue to exist despite steadily increasing rates of economic growth, data illustrating how economic inequalities harm societies has been found. A United Nations Development Programme (UNDP) report published in November 2013 gives a lucid explanation of what inequality is and how economic inequalities harm societies.

According to the report, inequality within a society takes two main forms: inequality of outcomes and inequality of opportunity. Inequality of outcomes includes income inequality resulting in inequalities in nutrition, education, etc. On the other hand, inequality of opportunity refers to unequal access to education and basic resources, among other things. As the report notes, both types are “opposite sides of the same coin” and cannot be viewed as independent.

More importantly, to answer the key question of how economic inequalities harm societies, it is important to note the relationship between factors that were earlier assumed to be independent. For example, poor countries with unequal distribution of income face greater political instability, lower investment in human development, higher taxation, less secure property rights and negative impacts on growth. Moreover, surveys conducted by UNDP found that citizens in such countries showed little or no trust in government policies formed to bridge income gaps.

Both Richard Wilkinson’s research and the UNDP report found that even the rich in unequal societies suffer from lack of trust, harsher sentencing (partially because of stricter laws), greater incidence of physical and mental illness (due to the pressure to “watch your back”) and higher taxation, among several other crucial indicators of quality of life. Undoubtedly, an equal society is in the best interest of all people.

– Himja Sethi

Photo: Flickr

, ,

The Relationship Between Social Justice and Economic Justice

social justice and economic justice
There is an enduring and powerful relationship between social justice and economic justice. Social justice has many definitions. The most common definition, according to the Oxford Dictionary, is: “Justice in terms of the distribution of wealth, opportunities and privileges within a society.”

The definitions that are most applicable to alleviating poverty, however, are:

  • The idea that every person should have equal rights to basic liberties and needs, and inequalities should be arranged to the greatest benefit for those considered lowest in society.
  • From the Huffington Post: “…promoting a just society by challenging injustice and valuing diversity. It exists when all people share a common humanity and therefore have a right to equitable treatment, support for their human rights and a fair allocation of community resources.”

However, the current functioning of global society violates each of these definitions almost completely, and therefore expresses the lack of and need for social justice in all areas of the world, especially developing nations.

The United Nations Development Programme reports shocking statistics from poverty elimination research, detailing that as of 2000, there were 323 million people living on less than $1 a day, 185 million people who were undernourished and 273 million people without access to improved water sources in sub-Saharan Africa, the most impoverished region overall.

These harrowing numbers from sub-Saharan Africa were accompanied by information stating that 44 million primary age children were not in school, 23 million primary age girls were not in school, five million children under five years old were dying each year and 299 million people were without access to adequate sanitation. These statistics demonstrate that simple economic failure and injustice is not an isolated issue, but rather closely parallelled by social failure and injustice as well.

In contrast, the statistics from central and eastern Europe are staggeringly different. Only 21 million people were living on less than on $1 a day, only 33 million people were undernourished, only 29 million people were without access to improved water sources, only three million primary age children were not in school, only one million primary age girls were not in school, less than a million children under five years old were dying each year and an insignificant amount of people were without access to adequate sanitation as of 2000, so low that it was not even reported numerically.

As can be clearly seen, there is a direct correlation between social justice and economic justice, and a very large gap between developed nations and impoverished countries. The more economically impoverished a nation remains, the more social injustice thrives and prevails. The greater the poverty, the fewer people are given fair and equal access to basic needs and rights.  

To start fighting such global, national and statistical chasms and deprivations, the United Nations’ Millennium Development Goals have started targeting social justice, specifically to help achieve the goals of:

  • Eradicating extreme poverty and hunger
  • Promoting gender equality and empowering women
  • Ensuring environmental sustainability

The hope is that the new information and educational awareness of the relationship between social justice and economic justice will kickstart the alleviation of poverty by focusing on the social injustices in each region and developing country to foster a new approach for decreasing poverty overall.

– Lydia Lamm

Photo: Wikimedia Commons

, , ,

The Global Economy Is on the Rise

global economy is on the risePeople around the globe experienced the mania of the Dow Jones’ historic low in February 2018. Some traders even questioned if this was a sign of a global stock market crash. But as the U.S. stock market recovers from its volatile hijinks, global trade as a whole is rising, and rapidly. This rapid rise has many economists optimistic that the global economy is on the rise as well.

The global economy is driven by trade. As international trade rises, so do technological developments as nations tear down trade barriers. According to a report by the CPB Netherlands Bureau for Economics Policy Analysis, the volume of imports and exports grew by 4.5 percent in 2017. To gain perspective, this is a significant spike from a stagnant 1.5 percent rate of growth the previous year, which was the lowest since the global financial crisis in 2007-2008.

Globalization a Reason Why the Global Economy Is on the Rise

The world is changing. Globalization moves the market, just as we move through our interconnected culture of technology, digital communications and transportation. As markets evolve, global poverty is decreasing, while the global economy is on the rise.

Old business practices are being phased out, technology is replacing hard labor and workers are rising to higher levels of efficiency. Automation is shifting the way goods and services are distributed, easing mass production.

Nations have outsourced businesses to developing nations, partly to reduce wage costs. Yet, business process outsourcing provides an oasis of income for people in developing countries such as India, the Philippines and Malaysia. In many places, this opportunity to earn a living would not be possible without outsourcing.

As technology advances, the market shifts and standards of living rise across the globe. Developing countries who have broken trade barriers have developed competitive advantages in the production of certain products. Ukraine, for example, is known as the breadbasket for its richness in wheat and farmland. Venezuela is known for its vast oil supply and China’s factories are known for producing more than half of the world’s clothing.

Tariff Reduction Has a History of Success in Developing Countries

History reveals that nations who open their economies to trade with the global economy experience faster growth and poverty reduction. During the past 30 years, global poverty has been cut in half. Studies show that developing countries that lowered tariffs in the 1980s experienced quicker economic growth in the 1990s compared to those that did not. Tariffs, or taxes on imports and exports between sovereign states, are often viewed as barriers affecting the global economy.

Developing nations have tariffs that are three to four times higher than industrial countries, and they are even higher on agriculture. Average tariff protection in agriculture is about nine times higher than in manufacturing. This can undermine a developing country’s agricultural sector and exports by depressing world prices.

The outlook for the global economy depends on these countries tearing down trade barriers. Yet, political decisions in developed countries are affected by trade barriers as well. In Venezuela’s case, the U.S. has imposed investor-related sanctions on Venezuelan oil to pressure its government to address its humanitarian crisis of inflation and starvation. According to Reuters, U.S. officials are not ruling out a complete ban on Venezuelan oil in order to send a strong message to its dictator, Nicolás Maduro.

Trade Wars Are Common and May Not Affect Global Trend

China’s trade practices have also affected U.S. trade on a political level. Elon Musk, the CEO of Tesla, recently called on U.S. President Trump for equal and fair rules for cars, citing China’s pressure on foreign businesses to partner with Chinese carmakers before manufacturing in China. Musk noted China’s 25 percent import duty on cars compared to America’s 2.5 percent duty. President Trump proposed a sweeping tariff on steel and aluminum on March 8, 2018, which characterizes the trade wars.

Skeptics believe this political decision could take the global economy down the rabbit hole. Others are bracing for a global crash for different reasons. “I still believe that we’ll face a financial crisis within the next two years if we don’t solve the debt problems,” said Bjorn Ritschewald, a civil engineer with the government Road and Traffic office in Bremen, Germany, a city popular for its maritime trade. “Almost every country spends more than its income. Actually, I don’t know any country that spends less than what it takes in.”

“Waves in trade flow are common, but it depends on the goods,” Ritschewald told The Borgen Project. “You can’t just look at the financial numbers. You also have to look at the real amount of goods and which kind of goods are being sold.” World markets experienced the rippling effects of the Dow Jones’ plunge. The plunge is characterized as market correction, a phenomenon where unusual market success sparks panicked selling, driving market drops across the globe.

On the other hand, many economists believe that the global economy is on the rise. Their confidence stems from positive trade initiatives such as the Trans-Pacific Partnership, a free trade agreement set to be signed by 11 countries in March. The trade wars and other trade barriers are pitfalls that affect the global economy. However, with trade growth booming, there is much optimism in the air about a healthy global economy in the future.

– Alex Galante

Photo: Google

, , ,

10 Facts About Poverty in Brazil

Facts About Poverty in Brazil
The biggest country in South America is dealing with one of the most drastic poverty issues on Earth. Despite billions of dollars invested in event tourism like the World Cup (2014) and the Olympics (2016), Brazil’s economy has begun to spiral downward as the country faces its biggest decline in over a decade. These crucial facts about poverty in Brazil offer insight on the issues that plague them.

Poverty in Brazil

  1. The homeless population is revolutionary
    One of the recent facts about poverty in Brazil is that squatters there have collectively chosen to occupy abandoned hotels and are now facing the threat of eviction. One example is the Mauá Occupation, which houses over 1,000 people that make up around 237 families. Mauá was a unique idea back in 2007 when the homeless population was barely surviving on the streets and began taking up land by way of force. Now, it has become a full-blown movement. Like many countries, Brazil suffers from gentrification and increased living costs. Brazil’s gentrification has created a revolution of homeless people occupying space both as a protest and out of necessity. This past November, over 20,000 homeless marched throughout the city in direct protest of the housing inequity.
  2. Slavery ended only 130 years ago; inequality still devastating
    In 1888, Brazil became the last country in the Western Hemisphere to abolish slavery, and the social, economic and moral ramifications of it still ripple throughout the nation. This is one of the more subtle and lesser spoken facts about poverty in Brazil because it reflects an ugly part of a recent history. Known as Afro-Brasileiros, black and brown Brazilians make up 51 percent of the nation’s population and suffer from discrimination and exclusion more than their lighter-skinned neighbors. Afro-Brasileiros also make up the majority of the homeless and poor population, and only seven percent of the city’s rich self-identify as such. Despite being known as a racial democracy, 80 percent of Brazil’s richest one percent are white, while only 13 percent of black and mixed-race Brazilians between 18 and 24 are currently enrolled in college. Afro-Brasileiro activism takes many forms; the Quilombos are descendants of slaves fighting for reparations. Another group focuses on the disproportions of blacks dying at the hands of Brazilian police. They have the slogan #VidasNegrasImportam, which translates to “Black Lives Matter.”
  3. New spending cap is making matters worse
    The new spending cap, known as PEC 55, will cut public spending for programs that help the poor. A U.N. official lauded it as the most socially regressive austerity package in the world. With 60 percent of Brazilians opposing it, the 20-year spending freeze inducted by President Temer has been protested and deemed a direct attack on the poor by many analysts.
  4. Unemployment was once slow growing; now it’s much faster
    Since the end of the World Cup in 2014, Brazil’s economy has been steadily declining to a new low. Unemployment grew from about six percent in December 2013 to nearly 12 percent in November 2016, despite almost 30 million Brazilians rising out of poverty between 2004 and 2014. Economic inequality is now expected to increase and around 2.5 million more Brazilians will be forced into poverty in the coming years.
  5. Water everywhere but not much to drink
    Roughly 20 percent of the world’s water supply is in Brazil yet much of the population suffers from a water shortage. The problem is that water is being used to power the economy, not the people. This is actually one of the older facts about poverty in Brazil, as the nation’s water misallocation has always been notoriously underserving. More than 60 percent of the nation’s energy is from hydropower plants while 72 percent of the water supply is consumed by agriculture via irrigation. In fact, Brazil is one of the most water-dependent nations in the world. More than eight percent of its GDP is agriculture and agroindustries, making it the world’s second-largest food exporter. Allocation of most of the nation’s water goes to the business sectors, and between 2004 and 2013, there was only a 10 percent increase in sanitation networks among the poorest 40 percent (i.e., households with toilets).
  6. From an emerging economy to a shrinking one
    Formerly an emerging economy growing at a rate of 7.5 percent in 2010, it shrunk at about the same rate over the last two years. Shrinkage is expected to increase due to President Temer’s privatization plan, and around 57 state assets are set to undergo a privatized makeover. From highways to airports and even the national mint, the privatization is in an effort to increase employment and improve quality of the service provided by the sectors. There is some proof that this could work; back in the 90s, the privatization lead to the considerable modernization of several crucial sectors. The best possible scenario still leaves the majority of the population, specifically the poorest, out of the financial loop.  Attracting international interests is great for the richest population looking to sell land to the highest bidder which happens to be China.
  7. Deforestation of the Amazon by China hurts locals directly
    China’s overwhelming demand for food meets Brazil’s immense agricultural production in a way that primarily benefits the wealthiest of Brazil. The Brazilian government has been selling off large parts of the Amazon to China directly, ironically in an effort to help China’s pollution while hurting Brazil’s sensitive ecology and economy. China’s deforestation of the Amazon temporarily increases employment in Brazilian cities near the forest, but then once first stages of production are over, massive layoffs result in a plummet of employment with the social climate (increased crime and violence) going with it. The massive deforestation even threatens Brazil’s ecological promises involved with the Paris Agreement.
  8. Infant mortality has dropped significantly but could be lower
    As of 2016, Brazil has significantly lowered it’s infant mortality rate from about 53 deaths per 1,000 (circa 1990) live births to about 14. While this is quite an achievement for such a developing country with so many social problems, UNICEF, the organization most responsible for helping the decline, remarked that the indigenous children of Brazil’s mortality rate is twice as high as those of city-born children. This shows that even for countries with relatively low levels of mortality, greater efforts to reduce disparities at the sub-national level are still needed. According to UNICEF, back in 2013 at least 32 municipalities still had an infant mortality rate of 80 deaths per 1,000 live births.
  9. Worker’s Unions are going extinct
    A recent law passed by President Temer allows employers to bypass nearly all hurdles set up by unions by eliminating a “union tax” that generates funding for worker’s unions. Designed to aid multinational corporations and not workers, the “reform” has been criticized by the International Labor Organization (ILO) as being in violation of international conventions. This permits inhumane working conditions and legalizes free labor. Legislation changes like this alter the future of the Brazilian workforce exponentially as multinational companies begin their migration into the Amazon.
  10. The right conditions for slavery
    Temer altered the definition of slavery so that it is defined by the victim’s freedom to leave. Meaning if a worker is kept in all the same living conditions as slavery, but not being physically forced to stay, it is to be considered legal labor. This is an emerging fact about poverty in Brazil because it has not happened yet, but legislatively, the absurd conditions do exist and the threat of slave labor is very real. This critical alteration of the definition has lead to the need for deeper investigations and, in alignment with the new changes, requires a police report with every case, creating more complications with each case. This drastically hurts the effectiveness of the ILOs ongoing fight against slavery which saw the liberation of more than 30,000 slaves in Brazil since 2003. The migration of businesses to the Amazon has made investigations much harder for the ILO and the conditions under which slaves work have gotten more brutal as well.

– Toni Paz
Photo: Flickr

,

Remittances to El Salvador Keep Families Out of Poverty

Remittances to El Salvador

The Trump administration has announced an end to temporary protected status (TPS) for the 200,000 El Salvadoran refugees residing in the U.S. Immigrants have until Sept. 9, 2019, to either obtain a green card or to exit the country. Critics of the policy argue that El Salvador is unable to support an influx of citizens and point to the importance of remittances to El Salvador for the families that depend on this source of income.

 

Why Refugees Need TPS

El Salvadoran immigrants were granted temporary protected status in 2001 following two devastating earthquakes. Once enrolled in the program, immigrants have access to social security cards and a pathway to legal employment.

TPS status was originally granted to El Salvadoran refugees for only 18 months. However, previous administrations have repeatedly extended the program due to other adverse conditions like poverty and violence, as these have worsened since the earthquakes. For a country not at war, El Salvador has the highest homicide rate in the world: 108 per 100,000 people.

 

Remittances to El Salvador

El Salvadoran workers send billions of dollars annually back home to their families. These money transfers are called remittances. El Salvador has one of the highest remittance rates in the world.

In 2016, approximately 1.2 million El Salvadoran immigrants lived in the United States. They sent $4.6 billion in remittances back to El Salvador, making up 17 percent of the country’s Gross Domestic Product (GDP). Remittances to El Salvador have a much larger impact on the country’s economy than foreign aid. The United States sent only $88 million in aid to El Salvador in 2016.

According to Manuel Orozco, a political scientist with Washington D.C. think-tank InterAmerican Dialogue, between 80 and 85 percent of El Salvadoran immigrants send money back home. Orozco estimates that the average immigrant sends $4,300 annually. More importantly, Orozco estimates that one in 20 El Salvadoran households depend on remittance for survival.

 

How Remittances Help Those in Poverty

Remittances to El Salvador often help the poorest families access education, clothing, medicine and financial support for elderly citizens. In 2013, about 33 percent of households receiving remittance were considered poor, while about 46 percent were considered vulnerable. This suggests that remittance payments play an important role in keeping vulnerable households above the poverty line.

Remittances made up about 50 percent of monthly household income for recipients. Remittances constituted an even larger percentage of monthly household income for rural households and female- and elderly-led households.

Additionally, households receiving remittance in 2013 were more likely to have access to running water, bathrooms and electricity than the average household in El Salvador. Rates of home ownership were higher in remittance households than in the average El Salvadoran household.

In 2013, 94 percent of households receiving remittances used part of the money on consumption spending. Remittances increase domestic spending by providing poor families with a greater disposable income. Eliminating this source of revenue has the potential to hurt El Salvadoran businesses and, consequently, the El Salvadoran economy.

According to economist Cesar Villalona, “It’s a cycle. If remittances went down it would plunge people into poverty and reduce spending, which would hurt companies, causing unemployment and hitting government finances.” President Trump’s repeal of temporary protected status for El Salvadoran refugees could have devastating effects on the nation of El Salvador as a whole.

– Katherine Parks

Photo: Flickr

, , ,

Economic Impact of Refugees on Neighboring Countries

impact of refugees on neighboring countries
Refugees taking asylum within other countries’ borders affect the economy of the host country and surrounding countries. People fleeing usually choose neighboring countries of their homeland, some of these being lower-income developing countries. While the effects are varying, several outcomes influence the economy of the host country in a positive manner and indirectly act as an economic impact of refugees on neighboring countries.

 

Education for Refugees

One such outcome is the development of education for refugees. This provides education for children in the host country that originally could not obtain such an opportunity. The use of international aid organizations has furthered the building of schools and training of teachers. These organizations seek to invest in the host countries development to ensure that the needs of the refugees are met, and thus bolstering that country’s economy.

Each individual person seeking asylum also brings a skill from home to the new country. As unemployed refugees come, there are a variety of skills and occupational backgrounds that are also brought — for instance, doctors, lawyers, nurses and carpenters. This influx of vocational skills can alleviate issues of a demographic crisis or an in-country population decrease.

 

Refugee Economic Status

Establishing desirable economic status as an individual provides an economic gain to the country and allows refugees to more easily integrate or move into other surrounding countries. An economic gain to the host country in the form of a working-class can result in positive economic impacts on neighboring countries.

Economic stimulus for the host country can further be developed through local food purchase, non-food items such as shelter materials, disbursements made by aid workers and assets brought by refugees. Purchasing products from neighboring countries is another of the positive impact of refugees on neighboring countries.

 

Refugee Strain on Infrastructure and Foreign Aid

A large influx of refugees to host countries does strain the country’s current economic infrastructure and call for emergency financial assistance. In a case study done on the 1999 Kosovar refugees, the International Monetary Fund and the World Bank estimated that host countries needed $52 to $188 million to appropriately deal with humanitarian needs. To accomplish this, these countries often look to developed countries to provide foreign aid.

Foreign aid given by countries can help increase the host country’s economy while also providing a peaceful presence to aid the in-need nation. Aid simultaneously benefits the receiving countries economy and the giving-country’s future economic gain and presence in foreign affairs.

Although hosting a large population of refugees can create a burden (especially on developing countries), the positive impact of refugees on neighboring countries is extremely apparent. These benefits provide an incentive to give asylum to those fleeing from conflict.

– Bronti DeRoche

Photo: Flickr

, , ,

How Technology is Helping Economies in Developing Countries

The Internet and other advances in communication technology have helped make the spreading of globalization even quicker. For developing countries, access to technology can have many benefits —  one such improvement being the boost of a nation’s economy. Other ways that technology is helping economies in developing countries include reducing the costs of production, encouraging the growth of new business and advancing communication.

An issue that developing countries must bypass is prioritizing technology innovation, not just adapting to technology. Another issue is that the distribution of technology needs to be equal across a country; so far the poor have not been able to have the same amount of access to technology. It is important for organizations to monitor technology and to encourage innovations and job creation in order to solve these issues.

One organization that works to do just that is Broadband for Good, a group that gives internet access to rural areas and encourages programs to utilize the technology in creating progress in communities.

When technology is used correctly it can be extremely helpful in furthering the prosperity of economies. One such example of technology creating a positive impact on the economy is in regard to India — the Self-Employed Women’s Association uses SMS to send agricultural workers messages about commodity prices. This information helps farmers determine the best places to sell their produce. Farmers who participated in this program have said that they have been able to sell their products over wider areas, which has increased their incomes.

Another example, also in India, is the Hand in Hand Partnership (HIHP). The HIHP is an organization that provides women with mobile devices so that they can launch their own tech-driven businesses. The HIHP helps train and provide technical support for these women. By encouraging women to innovate ideas instead of just giving them technology, HIHP is helping to better the economy in a sustainable and long-term way.

Other countries successful in creating businesses are Nigeria, Egypt and Indonesia. 38 percent of these countries’ gross domestic product (GDP) was generated by micro-entrepreneurs. In a 2011 World Bank report, figures showed that small businesses like these create new jobs and generate new ideas — both of which are great for helping economies.

– Deanna Wetmore

Photo: Flickr

, ,

Quest for Women’s Empowerment in Sri Lanka Continues

Women’s Empowerment in Sri LankaOn November 2, the World Economic Forum released the 2017 Global Gender Gap Report. The report did not reflect well on the state of women’s empowerment in Sri Lanka.

The Global Gender Gap Report grades 144 countries on their progress toward attaining gender equality in four areas: Economic Participation and Opportunity, Educational Attainment, Health and Survival and Political Empowerment. Sri Lanka has been declining from its position in the top 20 since 2010. The country slipped from closing 74.6 percent of the gender gap in 2010 to 66.9 percent this year.

The country’s gap in Economic Participation and Opportunity increased because it failed to improve conditions of wage inequality for similar work. Additionally, Sri Lanka now ranks 86th among 144 countries in the gender gap in Educational Attainment.

In Political Empowerment, Sri Lanka ranked 65th. The country compensated for low scores on the Women in Parliament and Women in Ministerial Positions indicators with high marks on the Years with a Female Head of State indicator. Sri Lanka has had a female head of state for 21 out of the last 50 years.

Despite these discouraging statistics, efforts to advance the state of women’s empowerment in Sri Lanka persist. Aitken Spence PLC, Jetwing Hotels Ltd., MAS Holdings (Pvt.) Ltd. and the Sri Lanka Institute of Nanotechnology (Pvt.) Ltd. have signed on as partners of Women’s Empowerment Principles.

Developed through a partnership between U.N. Women and the United Nations Global Compact, the two organizations designed the principles to help companies review existing policies and practices and establish new strategies to promote women’s empowerment.

The principles include:

  • Establishing high-level corporate leadership for gender equality
  • Treating all women and men equitably at work by respecting and supporting human rights and non-discrimination
  • Securing the health, safety and well-being of all female and male workers
  • Promoting education, training and professional development for women
  • Implementing enterprise development and employing supply chain and marketing practices that empower women
  • Nurturing equality through community initiatives and advocacy

Participating companies must measure and publicly report their progress toward achieving gender parity.

In addition to economic measures, non-government organizations are implementing social programs to enhance women’s empowerment in Sri Lanka. Emerge Centre for Reintegration is the newest program sponsored by the Emerge Lanka Foundation, which supports survivors of sexual abuse aged 10-18. For 12 years, the foundation has helped countless exploited young women by providing training in life, financial and professional skills. Now, through the Centre for Reintegration, it offers assistance to young women who are over 18 as they face the challenging transition stage from living in shelters to thriving on their own.

Enabling women to participate fully in communities builds stronger economies, helps attain internationally agreed-upon objectives for development and sustainability and improves the quality of life for women, men, families and communities. The work being done in Sri Lanka can help counter its decreasing rankings and ensure empowerment for all women.

– Heather Hopkins

Photo: Flickr

Uzbekistan’s Poverty Rate

Uzbekistan Poverty RateAfter separating from the Soviet Union in 1924, Uzbekistan is finally getting its economic footing. This country has struggled with transitioning to a market economy, but it has finally found a solution. Because of this, Uzbekistan’s poverty rate has slowly been decreasing over the years. It has declined from 33 percent in 2004 to its current rate of just 12.8 percent in 2017.

Although Uzbekistan has successfully decreased its poverty rate, the country still faces the challenge of creating more jobs to keep the poverty rate down. Many urban cities – where most of the population live – lack adequate employment opportunities. An unsteady unemployment rate, high cost of basic necessities such as food and low wages are major factors contributing to the poverty rate in Uzbekistan.

Uzbekistan boasts 92.3 points out of 100 for food production stability and 88.5 points for quality, meaning the country does not have a problem producing high-quality food products. The problem is that the low wages plus the high cost of food mean many residents cannot afford to buy this high-quality food. In fact, 75 percent of the population has a low income. Because of this, the country reports high rates of iron, folic acid and vitamin A deficiencies in its citizens living in poverty.

Thanks to the overall economic growth, a decrease in unemployment and a rise in the labor force have contributed to the decrease in the Uzbekistan poverty rate. In fact, the GDP has steadily increased in the last decade. In 2016, the GDP was estimated at $67.22 billion, a rise from 2014’s $63.067 billion.

Uzbekistan’s poverty rate now ranks seventh compared to its neighbors. It follows countries such as Afghanistan (39.1 percent), Armenia (29.8 percent), and Georgia (20.1 percent).

Although Uzbekistan has a long way to go to completely eradicate poverty, Uzbekistan’s poverty rate has significantly decreased over the years. Continuing to create suitable jobs for urban residents while increasing the GDP will help the country maintain its steady poverty decline.

– Amira Wynn

Photo: Flickr