Archive for category: Economy

Information and stories about economy.

,

Japan and Australia Sign Free Trade Agreement

japan_australia_free_trade_opt
Negotiations for a trade such as this has been in the works for seven years, though only now are the extensive efforts coming to fruition. Concluding with a deal on April 7, Japan and Australia finally reached an accord on a free trade agreement between the two countries.

Prime Minister Shinzo Abe of Japan and Australian Prime Minister Tony Abbott express mutual respect for one another, citing security and neoliberal economic agendas as important ties that have connected the two men and their respective nations for some time. A Joint Declaration on Security Cooperation, renewed in 2010, was initially signed between Japan and Australia in 2007 as a formal recognition of their devotion to the defense and support of one another. The Declaration came after years of informal cooperation, in such contexts as United Nations peacekeeping operations in the 1990s. More recently, Abbott has praised Japan’s democratic values and presence in international security activity.

Japan’s agriculture lobby, however, expressed concerns of an internationally aggressive competition and was opposed to easing access to food imports. Though Abe clearly favored opening Japan’s economy to increased competition, Australia was understandably concerned that the rigorous final round of negotiations would fall through as a result of the Japanese lobbying group’s hold on the ruling party that it elected. Yet the signed agreement builds on a trade treaty of 1957 that contributed heavily to the positive sentiment between the two nations. The new free trade agreement, then, is expected to build on the great business and cultural relations, and is consequently considered by many trade officials to be the best deal the Japanese economy has ever granted to another country.

The final version of the free trade agreement calls for joint compromise in both economies. While Japan is now required to phase out its current 38.5 percent tariff on Australian beef exports, Japan will end tariffs on Japanese vehicles, electronics and household appliances. Within 15 years, the Japanese beef tariff is expected to reach only 23.5 percent, with a subsequent decrease to 19.5 percent in 18 years. The Australian Trade Ministry also reported that Japan would increase cheese imports and simultaneously phase out tariffs on fruits, honey, vegetables, nuts and wine. Prime Minister Abbot has thus declared that Japan is “Australia’s best friend in Asia.”

Some argue that the free trade agreement between Australia and Japan, in bringing both nations closer to the United States as a result, could risk a free trade agreement with China, Australia’s number one trade partner. However, Japan is Australia’s number two partner, and the political and security ties could make a difference in the long run. After seven years of intense negotiations, one can only hope that Australia and Japan have made the correct decision.

– Jaclyn Stutz

Sources: The Conversation, Sydney Morning Herald
Photo: The Sydney Morning Herald

, ,

The Pros and Cons of Brazil’s Port Development


A port owned by a mining company in northeast Brazil is helping the local economy but polluting the region.

The Ponta da Madeira terminal was established in 1986 by Vale for the shipment of iron ore while simultaneously guaranteeing job stability for young people in Itaqui-Bacanga, an impoverished location in Brazil.

“Company trains arrive at the port, transporting minerals from Carajas, a huge mining province in the eastern Amazon region that has made vale the world leader in iron ore production,” said Global Issues. “The port also exports a large proportion of the soya grown in the centre-north of Brazil.”

However, George Pereira, the secretary of the Itaqui-Bacanga Community Association (ACIB), said Vale and other companies located around the area brought the wrong type of development into the region.

“We have more money in our pockets but no water to drink, because the rivers are polluted,” said Pereira. He believes that sanitation and education developments are more important for the community.

According to the article, ACIB was ironically created by Vale a decade ago to clean up the Itaqui-Bacanga area. However, Vale’s own creation is being awfully easy on the corporation.

On the other hand, Friends of the Earth International (FoEI) calls Vale the worst corporation in the world today.

The organization claims that the mining company is also among the largest producers of raw materials and has reported a profit of $17 billion in 2010.

But a FoEI study also found that Vale failed to help keep the environment clean.

“Despite setting out in 2008 its intention to cut its carbon dioxide emissions, Vale emitted – according to tis own figures – 20 million tons of CO2 in 2010, an increase of a third on 2007 levels (15 million tons),” said FoEI.

Moreover, FoEI also said that Vale has representatives both in the Brazilian government and the UN delegation who work hard to promote policies that “undermine global action on the climate crisis”.

Although Vale was able to create jobs for the impoverished in Itaqui-Bacanga, the company is actually causing more damage to the earth in the long run.

– Juan Campos

Sources: Global Issues, Friends of the Earth International
Photo: Panoramio

, ,

Britain’s Five Richest Families Worth More Than Poorest 20%

Income inequality is one of the biggest issues facing the world today. There is not a nation on Earth that is not affected by it in some way or another. The United Kingdom is currently facing a food crisis of national proportions with hundreds of thousands having to access emergency shelter food. Income inequality is also driving a wedge deeper and deeper in the British economy, making daily life even more difficult for working class families.

According to a study that was published by the charity organization Oxfam, the United Kingdom’s richest .1% have had their own personal incomes grow by over four times what the lowest 90% of Britain’s population have. Oxfam’s study used Forbe’s latest list of billionaires, and goes on to say that the United Kingdom’s five richest families have a total worth of over 28.2 billion pounds while the lowest 20% of the United Kingdom’s population only accumulated 28.1 billion pounds.

The Duke of Westminster topped the list of the top richest families in the United Kingdom. Gerald Cavendish Grosvenor is worth over 7.9 billion pounds and owns over 100 acres in London and Belgravia. The second highest were the Reuben brothers who are deal in extremely profitable metal business deals. Their company Trans World Metals, at its peak, controlled over 5% of the world aluminum supply. The third family on the list are the Hinduja Brothers who are worth over 6 billion pounds. The Hinduja brothers gained their fortunate by creating the Hinduja Group, which is conglomerate that oversees more than 21 companies that range from banks, to transportation systems, to chemical plants.

The fourth richest family in Britain is the Cadogan Family; the Viscount and Viscountess of Chelsea and their net worth of over 4 billion pounds. The fifth name on the list is Mike Ashley, owner of the prestigious football club Newcastle United who brought up the rear at 3.3 billion pounds.

The wealth that these families have accumulated is both astounding and impressive. However, in 2014 one of the biggest issues to both world leaders and citizens alike is the ever present issue of income inequality. The World Economic Forum declared that income inequality is one of the biggest threats that the world is facing today. Jennifer Blanke, the World Economic Forum’s Chief Economist cited the Arab Spring, as well as recent issues in both Brazil and South Africa as examples of how “…people are not going to stand for it anymore.”

The news that the top five richest families in Britain have accrued as much wealth as the bottom 20% is another piece of the income inequality puzzle that needs to be addressed and examined in a timely manner. The continuing rift between the rich and poor in every country around the world must be a main focus for the world’s leaders in order to take steps to address this issue.

– Arthur Fuller

Sources: The Guardian, The Independent, The Independent, The Guardian
Photo: Salon

,

Happy New Year, Iran

Iran
President Hassan Rouhani of Iran inherited an interesting situation upon entering office last June 2013. Elected under the pretense of repairing and improving a broken economy, Rouhani’s shoulders have had to carry increasingly heavy burdens.

Despite denial by various Iranian leaders, a plethora of scholars and academics attest to the claim that the downtrodden economy resultant of sanctions by the Western world significantly contributed to Rouhani’s willingness to participate seriously in nuclear talks. Such willingness has led to an easing of sanctions, ultimately permitting Iran to do business more freely on an international scale. Since Rouhani’s election, inflation in Iran has dropped from 43 percent to 33 percent and the nation’s currency has begun to revive from losing almost 80 percent of its value over the past two years.

Rouhani has helped to stabilize Iranian currency, started a path toward a nuclear deal and greatly reduced inflation. Yet the slow and steady pace of economic revitalization is not fast enough for the people of Iran. Former president Mahmoud Ahmadinejad left finances in a despicable state, far worse than suspected. In order to undo what was once done and produce long-term results, Rouhani has had to take short-term steps that have unfortunately made current life worse for many Iranians.

Sanctions as experienced under Ahmadinejad’s rule created a society accustomed to drastically higher prices of everyday goods. People learned to leave out the unnecessary goods and buy only those that were utterly indispensable. Now, however, individuals may experience an increase in gasoline prices, perhaps by as much as 30 percent.

And while the government attempts to keep prices at local markets fair for consumers, many shopkeepers and vendors complain that it is not worth it for them to sell their goods in such regulated arenas. No matter how much they sell, one vendor explained, they will end up losing money.

The Iranian New Year is here, welcomed with the sting of disappointment in the air. Rouhani is doing what he can, but patience is a virtue that financial misfortune makes difficult to uphold.

– Jaclyn Stutz

Sources: New York Times, NPR, Times, Washington Post
Photo: Joojoo

, ,

The Abahlali Movement’s Role in Eradicating South African Poverty

Abahlali
Apartheid in South Africa began in 1948 when the National Party was voted into power, favoring the white minority over the black majority. The African National Congress (ANC) then rose up to lead an opposition to apartheid and many ANC leaders, like Nelson Mandela, were imprisoned for years. Eventually the National Party became willing to negotiate a non-violent transition to a majority black rule after numerous protests. Apartheid came to an end after the first multi-racial elections in 1994, bringing the first black president into power: Nelson Mandela. Since then, the ANC has struggled to make the country equal for all races after all of the imbalances the apartheid created with things like healthcare, education and housing.

The Abahlali baseMjondolo Movement (also known as the Shack Dwellers Movement) was created to spread equality and help to fully end the long-lasting effects of apartheid. It started in early 2005 in Durban, South Africa and is still largely located in this port city, but it has become the largest organization of militant poor in South Africa in terms of mobilized peoples. The movement originated with a road blockade near the Kennedy Road settlement that was protesting a local industrialist buying the nearby land that these shack dwellers were promised by the new ANC government in order to create better housing.

This movement has grown rapidly to having over 30 settlements with tens of thousands of shack dwellers supporting them. The movement has suffered over a hundred arrests, ongoing death threats, regular police assault and intimidation from local parties in the last couple years alone. However, it has still been able to progress to the point that it has a persistent voice for inhabitants of informal housing settlements. Against the actions that have thrown thousands of people out to the streets, they have marched on and occupied police stations, offices of local councilors, newspaper offices, municipal offices and the City Hall.

Under the slogan “No Land, No House, No Vote,” the group has organized a very controversial, but extremely effective boycott of the local government elections. The Abahlali baseMjondolo Movement is distinctly against all forms of discrimination, corruption, repression and the concentration of land, wealth and power in any one party’s hands. They stand for a fair distribution of this land, wealth and power and for the right of the city’s inhabitation for every citizen.

Amongst other victories, the Abahlali baseMjondolo Movement has won access to schools, stopped the industrial development of the land promised to the Kennedy Road residents, democratized the governance of multiple other settlements, stopped countless evictions and forced multiple government officials and projects to actually focus on the poor. The movement’s main goal was originally to obtain land and housing in the city, but since it started it has successfully politicized and fought for an end to forced removals and for access to education, water, sanitation, health care and electricity. The movement has even set up gardening projects and sewing collectives for people living with AIDS and for orphans with AIDS.

For more information, address the Abahlali baseMjondolo Movement’s webpage at https://abahlali.org/ or watch the documentary about the movement entitled “Dear Mandela,” with the following webpage: https://www.dearmandela.com/.

– Kenneth W. Kliesner

Sources: Dear Mandela, Abahlali (1), Abahlali (2), CIA World Factbook
Photo: Western Cape

, , , ,

Desertification Heightens Poverty in Mongolia

Up until about 1990, Mongolia never faced any fears of living in poverty. Rural land specifically, and the large volume of land has been Mongolia’s source of food security and livelihood for centuries.

Mongolia owns approximately 838,853.13 square miles of land in which much of it is desert, but the arable land is quickly becoming depleted, polluted, or turned to desert.

Currently, 33% of people in Mongolia are poor, and over half of the country’s population is living in rural areas. This quickly happened after Mongolia’s large farms became private and hundreds of herders became unemployed and without government benefits.

Most of the rural poor live nomadic lifestyles, moving from area to area with their families in order to feed cattle and find food. Some families live in soums, or villages consisting of multiple families, and some rural families, particularly the nomads, live in tents known as ger. The benefit of living in soums is the ability to obtain some form of education, health services, and essential necessities.

Those living in rural areas rely on their animals for food and making money.

With much of the fertile land being utilized for feeding cattle, there has been a severe increase in land degradation. Mongolia has yet to find strengthening mechanisms for sustainable land management or a method to control desertification. Without these forms of protection, Mongolia is at an increasing risk of losing what little remains of one of their most needed natural resources: fertile land.

Desertification brings with it many struggles; drought and causing land to become irreparable are among the worst-case scenarios. With more and more of the land being overgrazed, little land will be left for agriculture, herding, and living. Mongolia is already naturally a very dry climate with little rainfall and plant growth, which is only worsened by the constant migration, over-cultivated land, and now competition for natural resources.

– Rebecca Felcon

Sources: Rural Poverty Portal, Scoop World
Photo: Stephane L

, , ,

Wasting Food Makes Ending Poverty Difficult

According to a report by the World Bank, 25% to 33% of the food produced for consumption around the globe is wasted every year.

The Food Price Watch report argues, “Between one-fourth and one-third of the nearly four billion metric tons of food produced annually for human consumption is lost or wasted.”

The World Bank claims that such waste mainly occurs during the production, transport, retail and consumption stages of food. This is bad news, considering millions of people around the world are dying of hunger, particularly in countries throughout Africa and South Asia.

Sadly, the report also argues that most of the food is wasted in developed countries.

“Overall, some 56% of total food loss and food waste occurs in the developed world; the remaining 44 percent across developing regions,” said the report.

The president of the World Bank, Jim Yong Kim, said that the large amount of food wasted around the world is shameful.

“Millions of people around the world go to bed hungry every night, and yet millions of tons of food end up in trash cans or spoiled on the way to market,” Kim said.

Apart from the food insecurity that such waste can create, the World Bank claims that wasting and losing food also harms the economy and environment, and makes fighting poverty even harder.

But, how guilty are Americans when it comes to wasting food?

According to NPR, people in the United States waste around $165 billion worth of food each year. On one of the agency’s radio programs, Jonathan Bloom, author of “American Wasteland: How America Throws Away Nearly Half of Its Food (and What we Can do About It,)” said, “We often don’t tend to realize that we’re throwing away perfectly edible food, especially when we’re paying attention to those expiration dates and when we’re thinking of those as the gospel truth.”

He believes that expiration labels are placed on food items for quality reasons, not safety.

But returning to the report by the World Bank, consumers often fall victim to the deals pushed by advertisements. Since consumers tend to buy more food than they need, many perishable items tend to expire by the time they are finally willing to eat them.

It is ultimately up to the consumer how much food to purchase and how long to wait before eating it. However, the consumers can make a big difference in the world if they stop wasting so much food.

This can be achieved by paying closer attention to their own eating patterns and simply buying less food.

– Juan Campos

Sources: NPR, The World Bank, Yahoo News
Photo: Enterra Solutions

, , ,

Famous, Rich and Hungry: BBC’s Latest Foray Into Poverty

The BBC is one of the more respected production companies in the world.

It produces such shows as Top Gear, which is an extremely popular show. It also produces a variety of news programs and also many sports programs as well. However, the BBC has, in the past few years, been straying from its normal programming and delving into the area of reality television and poverty. The BBC has aired Famous, Rich and Jobless, Famous, Rich and Homeless, and, most recently, Famous, Rich and Hungry.

The shows are designed to expose the lives of those who live on the fringes of England’s society and air them to the entire nation. In the latest show, Famous, Rich and Hungry, various celebrities in England are sent to live with poor families for a week in order to experience what food poverty really feels like. The show will have such celebrities as Rachel Johnson, the sister of the Mayor of London Boris Johnson.

It will also have Teo Paphitis an extremely successful businessman who is estimated to be worth over 200 million British pounds (roughly $332.26 million.)

The show is produced by Love Productions, who was also behind the production of the other Famous and Rich series. The show’s executive producer, Richard McKerrow, spoke in an interview recently and said, “I am sure there will be the same media storm, because my God, there is a political bun fight about whether people in Britain are currently going hungry.”

There is a plethora of evidence from both scientific and scholarly sources that there is indeed a crises occurring in Europe. The situation in Europe right now calls for a united effort to pass laws and bills that aid in both the economic recovery and aid of getting Europe citizens out from the ever present shadow of poverty.

The austerity measure that are being used by many European counties at the moment in order to lift their economies out from the rubble. The BBC has an opportunity as one of the world’s largest television producers and acclaimed sources of information really to aid those in need.

The BBC should focus on producing quality television that can educate, enrich, and inform its viewers rather than sensationalizing someone’s misfortune by showcasing it as a spectacle to the world. The poor need informed and educated people fighting for them, rather than having their lives made a mockery of.

– Arthur Fuller

Sources: The Guardian TV-Radio Blog, The Guardian Media, The Guardian, Daily Mail
Photo: Daily Mail

, ,

More Than Safaris: Kenya’s Rise to Power

Thus far, Kenya’s economy depends largely on tourism, specifically safari tours. Travelers often spend the night in Nairobi, the region’s gateway to business, before their safari adventure. Kenya also benefits from pineapple production–a top five producer worldwide–through exporting both canned pineapple and juice concentrates. But there is much more to the booming country than tourism and agriculture. So what else is special about this east African nation?

Kenya is Young and Friendly

Youths serve as optimists for the future and in Nairobi, they keep the economy going. More than 60% of the population is less than 25 years old. Kenyans tend to be warm-hearted and welcoming to foreigners. While the national language in Swahili, many Kenyans speak English at a high level and are willing to converse with tourists about Kenyan culture.

While Kenya is sophisticated compared to its East African neighbors, the country still suffers from unemployment and poor infrastructure. Many of Kenya’s young cannot get jobs due to a lack of skills and opportunities.

The Diaspora Returns

Waiting an hour and a half for a pizza in Nairobi? Rotesh Doshi would rather not. After studying at the London School of Economics, he pursued work opportunities abroad. When he had the chance to bring United States-based franchise, Naked Pizza, to Nairobi, he took it and ran with it.

Although it is his hometown, Doshi found many challenges to setting up a business in Nairobi, including poor infrastructure, government bureaucracy and a short supply of skilled human labor. “You often ask yourself ‘is it worth it’ when a lot more things go wrong than right,” Doshi said. “But there is nothing else that I would rather be doing right now, especially being part of that growth story in my own country.”

Promising Entertainment Industry

Lupita Nyong’o’s Oscar win for her supporting performance in 12 Years a Slave gives Kenya’s entertainment industry a ray of hope. With 40% of Kenya’s workforce unemployed, and 70% of those being less than 35 years old, successes like Nyong’o’s show young people that they can, in fact, make it in the entertainment sector, which can then boost the economy.

The government hopes to do this through establishing a film school and promoting the entertainment industry as a legitimate avenue for job creation. Kenya looks to Nigeria for inspiration. Nigeria’s film industry, referred to as “Nollywood,” produces about 50 films per week–many more than Hollywood and second only to India’s Bollywood.

Attracting New Businesses

Food processing giant Del Monte set up a Kenyan branch called Cirio Del Monte Kenya to take advantage of the region’s high-yielding pineapple production. In the technology sector, Korean electronics manufacturer Samsung announced plans for a new assembly plant in Nairobi, positioning the city as the East African center of operation.

With businesses like Proctor & Gamble, Pfizer Pharmaceuticals and IBM opening regional hubs in Nairobi comes the opportunity for more employment for the country’s youth. Foreign businesses that are setting up their African headquarters in centrally located Nairobi also benefit local businesses, like Kenya Airways.

– Haley Sklut 

Sources: BBC, How We Made It In Africa, All Africa, US Embassy, Career Nation
Photo: Sida

,

Akon Lighting Africa Project

akon_lighting_africa_project
Every day, 600 million Africans live in the dark with no access to electricity, which is making it difficult for students to read, clinics to properly store vaccines and businesses to operate outside of natural light hours.

The energy crisis in Africa, particularly in the Sub-Saharan countries, leaves many people in poverty. In a place where work stops when the sun goes down, it is hard to advance in the workplace, which is making employment opportunities scarce. And, when power is available, it is often unreliable and can cause power outages.

Senegalese pop-star Akon, in partnership with Give1 Project and Africa Development Solutions Global Corporation, aims to give electricity to one million households in nine West and Central African countries by the end of 2014.

The Akon Lighting Africa project involves installing solar equipment in rural households in Senegal, Mali, Guinea Conakry, Gambia, Burkina Faso, Equatorial Guinea, Gabon, Congo and the Ivory Coast.

Originally from Senegal, Akon, whose real name is Aliaune Badera Thiam, is on tour of the beneficiary countries to meet with presidents and leaders.

“We wanted to focus the project on rural areas because we often forget that our parents in these remote areas need electricity,” Akon was quoted saying after meeting Burkinabe President Blaise Campore.

The project also aims to improve education quality and sustainable infrastructure. Improved electricity would lengthen hours of education, allowing students the opportunity to succeed.

Akon was born in St. Louis to two musician parents; he spent much of his childhood in Senegal. Despite living in the United States, Akon keeps his homeland in the forefront of his business ventures.

He started a charity in Africa that aims to empower youth by promoting health and education. The Konfidence Foundation concentrates its efforts in Senegal and West Africa, but Akon hopes the foundation will serve as an international platform to empower individuals, communities and nations.

Akon Lighting Africa is the pop star’s most recent project that aims to help Sub-Saharan African countries become self-sufficient. The sustainable energy project has a mission to help the infrastructure, education and economy of the beneficiary countries.

– Haley Sklut

Sources:  Africa Review, World Bank, Konfidence
Photo: Trace