Archive for category: Economy

Information and stories about economy.

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World Bank Encourages Overseas Hiring Online

World Bank Encourages Overseas Hiring Online
A recent effort by the World Bank has helped make overseas hiring feasible for many interested parties – and has driven a surge of employment in Africa.

Unemployment has always been a boogeyman of modern culture. Whether a fully-developed or an emerging market, no economy thrives when it has a high rate of unemployment. According to the U.N., the challenge of unemployment is growing by the year. In 2014, the number of unemployed passed 201 million people worldwide. A disproportionate number of these were women and young people just entering the workforce.

The internet could change that. Like almost everything else the internet has affected, the job market is a very different place now than it was only three or four years ago. Digital entrepreneurs are increasingly common, and small businesses have access to better tools and faster communication than was ever possible before.

Entrepreneurship is not always an option, however. Being a digital entrepreneur requires social networking, strong skill development and a market to work with. On the other hand, companies are often looking for new talent pools of employees.

A study supported by the Rockefeller Foundation and done in partnership with Dahlberg Consulting has recently resulted in a new service. The World Bank is now helping interested individuals and companies find global employees through a new online toolkit. Companies seeking new talent can look abroad for the perfect fit for their employees. Meanwhile, people with technology skills in developing countries can now find jobs that allow them to use their full capacities.

This new business model, called “online outsourcing,” has the power to catalyze new economic growth. It also has the potential to drive a new wave of economic inclusion and equality, as typically underrepresented groups can join the workforce.

The collaboration between the World Bank and the Rockefeller Foundation is part of the Rockefeller Foundation’s Digital Jobs Africa Initiative. The mission of the initiative is to create new, sustainable employment opportunities for youth in Africa and the skills training to match. This is all working toward the ultimate goal of positively impacting 1 million lives in Egypt, Ghana, Kenya, Morocco, Nigeria and South Africa.

So far, the collaborations have been a success. The partnership has enhanced digital job creation in Africa in a number of ways, including the development of an information technology park and capacity building for the digitization of public records in Ghana.

Africa’s economy and population are both growing at an unprecedented rate. By 2050, 400 million people under the age of 25 will need to be gainfully employed in order for the continent’s economic growth to be sustained. Initiatives like the partnership between the Rockefeller Foundation and the World Bank could be the key to success – both of Africa’s economy and of Africa’s youth. The job market is becoming truly global, and everyone will reap the benefits.

– Marina Middleton

Sources: The World Bank, The Rockefeller Foundation
Photo: Flickr

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What it Means to Educate the World

Educate the World

Teach the world. Fix its problems. Seems like pretty simple logic.

However, advocacy for education around the world may seem like a broad scope, and many times the necessity of “spreading education” comes across so vague that it gets lost in the web of international aid “talk”. In order to understand the importance of education and creating more opportunities for education around the world, everyone should know some of the educational programs being created around the world. Here are a few just to start the long list!

Health Education: Rampant spread of disease is a significant concern in many developing nations around the globe. Many illnesses in poorer regions of the world are preventable and treatable, yet people in said communities continue to suffer. Health education is instilled in many countries, teaching many about general health and sexual health. HIV/AIDS in particular, remains a main focus for many international aid organizations, and by teaching safe sex practices and overall safer health practices, there will hopefully be an end to the spread of these deadly illnesses. To learn more about these kinds of organizations, go to www.planusa.org.

Economic Education: Instead of simply giving money to poor communities, it is important to also teach sustainable and smarter economic practices in order to assure more long-term effects from international aid efforts. Certain education advocacy groups go into poor communities in other countries, teaching small business owners and families more efficient strategies of economics and savings. This not only builds up said business, but also puts more money in the homes and to the families of the small communities, and moreover stimulates the overall economy. To learn more about these types of programs, go to www.trickleup.org.

Women’s Education: Educating and empowering women around the world is a huge objective in many international education programs. Many women in developing nations experience extreme oppression, and in many cases, abuse. By educating women, in particular skills and safer health practices, they are given more of ability to be independent, and are less likely to stay in circumstances in which they are abused. To see more about these types of programs go to www.learningpartnership.org.

Education covers a number of interests and fields, especially when dealing with international aid and relief organizations. By educating the world, we do more than teach people how to read and write. Education is matter of sustainable living, health, success and happiness.

– Alexandrea Jacinto 

Sources: Learning Partnership, Plan USA, Trickle Up Organization
Photo: World Vision

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Poverty in Chengdu, China

poverty_in_changdu_china
The meteoric rise of the Chinese economy has captured worldwide attention in recent years. But in the city of Chengdu, further progress is threatened by poverty and corruption.

Located in southwest China, Chengdu serves as the capital of Sichuan province. It’s an important city in the region with rapid economic growth, but poverty in Chengdu still exists.

Hundreds of Fortune 500 companies have set up local branches and the city hosts a booming technology industry. It also hosts the world’s largest building, the New Century Global Center, a megaproject which was completed in 2014. A symbol of the region’s economic progress, the hulking structure has enough space to fit 20 Sydney Opera Houses.

Like many newly prosperous cities, however, Chengdu struggles with problems associated with migrant labor and corruption.

According to SOS Children’s Villages, an NGO dedicated to protecting the rights of children, migrant workers are struggling in Chengdu. The economic growth of the city attracts many workers from the surrounding countryside. When these workers fail to find jobs, their families find themselves in trouble. They have little access to essential services because, as migrants, their rights are limited. Economic prospects are dim and many children are forced onto the streets to find work.

Corruption is another concern for residents. Chengdu made world news in 2012 when a government official, Wang Lijun, fled to the American embassy in Chengdu amid a major corruption scandal.

Construction of the enormous Global Center was also mired in controversy, leading to the arrests of dozens of local officials. Deng Hong, a billionaire behind its construction, is under investigation by the Chinese government for corruption.

After nearly 40 years of aggressive market reforms, China’s economy is now the fastest growing on earth and roughly 500 million people have been lifted out of poverty. There is no doubt that Chengdu, like many Chinese cities, has benefitted from the nation’s skyrocketing economic prospects. The breathtaking pace of China’s economic growth is well-known.

In 2014, China surpassed the United States in purchasing power parity, a measure which examines national GDP relative to the cost of living. In absolute terms, the Chinese economy is likely to overcome its American counterpart in the coming decades.

For this growth to be sustainable, however, China must contend with urban poverty and local corruption.

– Kevin Mclaughlin

Sources: SOS Children’s Villages, The TelegraphWorld Bank

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Malnutrition in Mauritania

Malnutrition in Mauritania
Though the shores are teeming with fish, childhood malnutrition in Mauritania persists.

According to UNICEF, 20 percent of the country’s children under five are underweight. Another 22.5 percent of children exhibited signs of stunting, an inhibition of growth caused by chronic malnutrition. Wasting, a deterioration of fat and muscle due to acute malnutrition, was seen in 12.2 percent of children.

Mauritania ranks 27th in the world for under-five mortality, with a rate of 84 per 1000 births. Thirty-four percent of children are born with a low birth weight of less than 2500 grams.

Professor and nutrition expert Michael Golden stated in a 2012 interview with UNICEF that malnutrition is often caused by a combination of poverty, low social mobility and poor medical services. “What is needed now is to focus on health services research – how to deliver services effectively to poor people in places like Mauritania,” Golden said. “We need to maximize the efficiency of small numbers of staff who are not always well trained.”

One of the world’s poorest countries, Mauritania is known for its slave trade. Though slavery was outlawed in 1981, there were no criminal penalties for slave owners until 2007 and the practice is still widespread.

Mauritania’s economy relies mostly on agriculture, fishing and mining in lieu of industry. Very little of Mauritania’s land is arable and the country suffers from recurring droughts. Overfishing by foreigners has hurt its economy.

The country continues to be home to nearly 50,000 refugees fleeing neighboring Mali. In 2012, war broke out between the Malian government, Tuareg rebels and Islamic extremists. The region remains volatile and refugees are reluctant to return.

According to the U.N.’s Standing Committee on Nutrition, malnutrition is the single largest contributor to disease. It is especially dangerous for young children, who need a proper diet to develop. Without necessary vitamins and minerals, children may suffer from stunted physical and mental development.

Malnutrition is both a cause and symptom of global poverty. In countries where families consist of many children, it may not be possible to feed all of them. Those who are malnourished may struggle to work and mothers are often unable to breastfeed. As stunted children typically earn less as adults, malnutrition is a major factor in the cycle of poverty.

– Kevin Mclaughlin

Sources: CIA, UNICEF 1, UNICEF 2, UNICEF 3
Photo: Flickr

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Poverty in Lahore, Pakistan

Poverty-in-Lahore-Pakistan
Pakistan is among the nations in the developing world that has made substantial progress in poverty reduction. The amount of people living in extreme poverty has gone down considerably over the years and continues to decrease today. What drives poverty reduction in Pakistan, especially in large areas such as Lahore, is income growth. Through a combination of support programs and reforms, as well as income equality, Pakistan was able to translate income growth to poverty reduction.

According to the World Bank Group, there are over 50 million less people living in poverty in present day Pakistan than there were in 1991. Additionally, the percent of people living on less than a dollar and a quarter a day fell from 66.5 percent to 12.7 percent. However, although extreme poverty in the region has been reduced, there is still over half of the population living under two dollars a day. Despite progress made in Pakistan, there still remains a high number of Pakistanis in poverty and many more who are vulnerable to falling back into poverty, especially in large cities such as Lahore.

Lahore, a large region in Pakistan, is considered to be one of the most populated urban areas in the world and is one of the largest cities in the Islamic world. According to Index Mundi, as of January 2015, Lahore has an estimated 10 million people living in the region. The size of the region poses a bilateral problem; on the one hand, Lahore’s population and size contributes to its wealth and prosperity, while on the other hand, with a large city comes overpopulation and underdevelopment. Large cities such as Lahore often have another side to their urban development: the underdevelopment of parts of the region called the slums. Similar to the slums in various parts of India, Indonesia and Kenya, slums in Lahore are densely populated with areas lacking in basic necessities such as clean water, electricity, security and health care.

In Lahore, 30 percent of the region is considered to fall into the category of slums; however, the percentage does not take into account the amount of unregistered slum neighborhoods in the city. These slums are formed by low income communities that do not have the means to live in proper housing in the city, and they are a byproduct of over population, economic, political and social inequalities as well government intervention. Slums in Lahore are also a consequence of people moving from rural areas around Pakistan to the city in hopes of attaining a better life. The reality, however, reveals that many who move into the city have a difficult time securing employment, and eventually settle in the slum communities as a result. Health care, education, and basics such as sanitation and electricity, are extremely limited in the slums of Lahore and further contribute to low living conditions.

A solution that can bring poverty rates down in Lahore is to have more government involvement through political laws and reforms that pay special attention to these areas. More government interference and aid to counteract inequalities can be the beginning of reducing poverty in the slums of Lahore.

– Nada Sewidan

Sources: The World Bank, TribuneAcademia.edu
Photo: Pakistan Defence

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Alaffia’s Beauty Products Make Global Impact


A premium skin-care company called Alaffia empowers local people in Togo by handcrafting beauty products prepared from Certified Fair Trade shea butter. Better yet, all of the sales from Alaffia’s beauty products contribute to the livelihood of West African communities.

Alaffia offers creams, soaps, lotions and hair-care products made from the indigenous shea tree. Alaffia operates at a local level, employing women in need and enabling youth to stay in school to complete their educations.

This company is essential to West African women because they have difficulty obtaining employment since they are oftentimes not able to access education. Exclusion from the workforce leaves them vulnerable and often unable to support their families. Alaffia directly employs around 500 women in co-ops throughout Togo to cultivate shea by hand. These women are compensated with fair wages for their work and they bring unique knowledge and handcrafting skills to the job.

The company was founded by Togolese native Olowo-n’djo Tchala in 2004 after he realized the need to combat gender inequality and poverty. Alaffia was founded on Tchala’s belief that everyone deserves equality, empowerment and beauty.

Furthermore, Alaffia uses its profits to sponsor philanthropic projects in Togo. One such project is called “Bicycles for Education,” which provides disadvantaged students with bikes to get to and from school. So far, it has helped more than 6,300 students in Togo. Alaffia donates metal roofs, seats, and school supplies to rural schools through its “School Supplies and Repairs” project to create a functional learning environment for youth.

Alaffia has also provided over 3,200 pregnant women with pre- and post-natal care, and has funded the planting of 25,000 trees to combat climate change.

While philanthropy and environmental benefits certainly set Alaffia apart from other major beauty companies, Alaffia products are also made with unrefined ingredients and contain no synthetic fragrances or genetically modified organisms. They are vegan, gluten free and an ideal alternative line for those with sensitive skin.

These products help Africans profit from their natural resources and create sustainable goods that help our planet, empower local communities, and improve education for students.

Alaffia products can be purchased at natural and organic food stores such as Lassen’s and Whole Foods.

– Jenn Hartmann

Sources: Alaffia, Thurston Talk
Photo: Hello Beautiful

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VEGA Brings Economic Growth Globally

VEGA
The Volunteers For Economic Growth Alliance, or VEGA, is a nonprofit that brings its members together to execute economic growth projects overseas.

Founded in 2004, VEGA was originally an initiative of the United States Agency for International Development. The organization was meant to be a procurement partner.

Today, VEGA represents itself as a respected NGO alliance of 23 member organizations. Each member brings its expertise to the Alliance to allow VEGA programs to grow in development and scale.

Based in Washington, D.C., VEGA can effectively manage its programs stationed in developing nations.

With a mission to mobilize expertise and resources to promote sustainable economic opportunities, VEGA’s programs aim to scale the services of local organizations, create jobs, increase commerce and trade and improve management.

Volunteers from the U.S. offer their expertise to programs that are committed to serving women, youth and others who are ready to be entrepreneurs in order to lift themselves out of poverty.

Currently, VEGA manages 36 programs in 28 countries.

These programs include: Farmer-to-Farmer, Capacity Building of Cambodia’s Local Organizations, Competitive Agriculture Systems for High Value Crops and Kazakhstan Business Connections.

Though programs only run in 28 countries, members have worked in over 140 countries, bringing their values and skills to local partnerships.

The expertise that VEGA members bring to the team range in areas from agriculture and food security, to tourism development and financial services. Also included are environment and energy, enterprise development and trade and investment.

VEGA believes that economic growth that emphasizes innovation, local partnerships and integrated solutions is the best way to promote prosperity.

With the power of volunteers rallying behind this mission, the strength in collaboration has allowed this NGO to make an impact in economic growth for the developing communities it serves.

– Chelsee Yee

Sources: VEGA Alliance, ACDI VOCA, Africa Agribusiness Magazine

Photo: USAID

Japan’s Economy Failing

Economy Failing Japan
Japan is currently facing a dour economic situation comparable to  2011 when a tsunami struck Japan’s eastern coast. Following the tsunami, Japan’s economy started to shrink to 6.9 percent and is now down to its lowest rate since the environmental disaster.

Economists attribute Japan’s most recent third-quarter recession to lack of investment in housing in addition to a rise in taxes enacted as a part of a series of reforms. The value-added tax (VAT) has caused the world’s third-largest economy to shrink into recession.

The unpopular rise in taxes comes at an unfortunate time for current Prime Minister Shinzo Abe who is seeking reelection.

Another burdening issue for Japan is the vast economic debt it has garnered. The debt is due to the inequality between revenue and expenditures and Tokyo’s inability to address this serious problem.

As a major player in the world economic system, Japan’s recession is affecting U.S. markets as well. It could negatively impact the U.S. economy because Japan consumes a large number of U.S. goods as its fourth-largest trading partner. A surprising number of American-brand luxury retailers rely on Japanese consumers to buy their products.

On the bright side, however, the country is currently projected to increase the quantity of exports as demand is likely to rise. Japan is currently pursuing low interest rates offered by the central bank on long-term borrowing. This will allow Japan to rise slowly out of public debt while not incurring the backlash of high interest rates.

Prime Minister Abe outlined a three-step solution to resolve the economic crisis in 2012. First, the Bank of Japan increases inflation followed by increased government monetary spending including a hefty stimulus package. The last step of “Abenomics,” as the Prime Minister’s plan has been dubbed, is to completely restructure the system by implementing tax cuts and other long-term reforms.

Abenomics is essentially the coupling of short-term policies with long-term, structural reforms aimed at strengthening the overall economy. However, the projected benefits of “Abenomics” have yet to be seen and increased taxes have plunged the economy into recession.

Eventually, the system is meant to result in higher wages that will allow an increase in consumer spending over time.

– Maxine Gordon

Sources: Yahoo Finance, The Economist, Trading Economics, CFR, Reuters
Photo: Foreign Affairs

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Russia Looks to Weather Economic Sanctions

economic_sanctions
The Russian economy is suffering due to sanctions enacted by the United States and the European Union. Inflation has risen dramatically and with the ruble teetering back and forth, the safety of their currency is uncertain.

During the annexation of Crimea and Russian military movement in the Ukraine, the U.S. and E.U. increased trade restrictions on Russia and wealthy businessmen regarded as being close to Vladimir Putin. As the Russian economy shifts focus toward a stronger economic development and trade with the Asian countries, Russia’s reliance on the dollar decreases.

One of the ways in which Russia is attempting to achieve this is by trading in domestic currency rather than relying on the U.S. dollar. Russia’s dependence on Asia in general and China in particular hints at Putin’s larger goal for the Russian economy to be less involved in U.S. and Europe. Among of the most important deals Russia has made is  the Agreement on Cooperation which was signed by Vladimir Putin and Chinese president Xi Jinping. The $25 billion deal will allow Russia and China to trade in domestic currencies rather than the dollar.

Another significant deal is the $400 billion trade deal that will increase oil exports from Russia to China. It includes a proposal for a new pipeline that will send oil directly from Western Siberia to China. Underlying Putin’s unease with the U.S. is the desire to begin limiting U.S. economic hegemony. However, the dollar is so prevalent in the foreign economy it seems unlikely that a dramatic shift will occur in the near future. Russia’s largest market is currently the E.U. and sanctions have reduced the amount Russia is able to export.

Economic sanctions enforced by President Barack Obama seek to undercut Russian oil exports which make up half of Russia’s economic revenue. Putin announced recently at a G-20 Summit that the West needs to lift sanctions. He states, “This is harmful, and of course is doing us some damage, but it’s harmful for them as well because, in essence, it’s undermining the entire system of international economic relations.”

If Russia is less dependent on the U.S. market, sanctions will mean little to Putin and the Russian economy. Eventually there will be little to deter him from further military involvement in the Ukraine or elsewhere. It will be more difficult for the U.S. to influence Putin’s perceived aggression.

Russia is not the only country who wants to decrease dependence on the U.S. market. Other BRICS (Brazil, Russia, India, China and South Africa) countries are looking to do the same. For the meantime, Russia may be forced to cope with the low price of oil. American economists predict that the prices should level out at about $83 a barrel and stay there for a while to come.

– Maxine Gordon

Sources: International Business Times, Reuters, New York Times, The Guardian
Photo: Newsweek

The Fluctuating Latin American Economy

The Latin American economy has experienced a period of great fluctuation since 2010. Whenever there is good news, there seems to be an equal and opposite force of bad news applied. Constant fluctuation has curbed poverty and opened the door to the middle class, only to have that door slam close. There are several key points to consider as to why this is.

In the past decade, nearly 50 percent of those in poverty have risen above the poverty ranking. But many are still struggling to enter the middle class. Around 200 million, or over two-thirds of the population, are at a high risk of falling back into poverty.

To fully understand this, it is necessary to know how economic divisions are classed in Latin America. Twenty-five percent of Latin Americans are earning less than $4 USD per day and this is considered living in poverty.  Some 34 percent  earn between $10 and $50 USD per day and these individuals are judged to be middle class. When someone earns between $4 and $10 USD, they are part of the vulnerable class. This final group accounts for 38 percent of the population.

The UNDP disclosed this information in the 2014 Human Development Report; a report that uses data as recent as August 24 of the same year.

But not all news is bad.

The middle class of the combined Latin America and Caribbean grew from 21 percent to 34 percent equaling 81 million individuals in the time period form 2000-2012. The vulnerable population grew from 35 percent to 38 percent. The UNDP recognized poverty dropping from 42 percent to 25 percent over that same time period as a significant regional achievement.

Now, Jessica Faieta, the UNDP Director for Latin America and the Caribbean, says the good news might be running out unless a change is made.

“It is very clear that using the same policies will not provide the same results,” said Faieta. “More than ever, the region must invest in universal social protection, particularly in the most critical phases of life, as is the case with children, the elderly and youth entering the labor market.”

Other analysts agree with her conclusion. The region lacks critical social protection, a defense that has been pinpointed as crucial to long-term economic growth. Nearly 50 percent of the country lacks access to medical services, a retirement pension or a labor contract. If this is not amended, the region cannot be expected to grow at the same rate indefinitely.

– Andrew Rywak

Sources: UNDP, The Economist, BBC