, , ,

Innovations in Poverty Eradication in Rwanda

Poverty Eradication in Rwanda
Rwanda is a low-income country in East Africa with a population of 12.6 million as of 2019. The World Bank and the IMF have supported Rwanda’s economic development, which has been remarkable throughout the past decade. Following years of conflict that destabilized national progress, particularly the 1990-1994 genocide that claimed almost 1 million lives, there have been exemplary innovations in poverty eradication in Rwanda.

In 2013, the Government of Rwanda drew its second Economic Development and Poverty Reduction Strategy (EDPRS II) as part of its Vision 2020 for socio-economic transformation, which included targets of a GDP growth of 11.5% and a 20% reduction in poverty levels. The Vision 2020 also aimed for an annual creation of 200,000 new jobs, 50% of them in non-agricultural sectors. The Government also founded the Rwanda Development Board (RDB) to further drive economic development. In 2019, RDB recorded $2.46 billion USD in investment commitments to Rwanda, with the U.S. being the top investor. Energy, water, manufacturing and the service industry attracted the highest investment. Notably, 46.5% of people in Rwanda were employed as of November 2019 with 61% of the total workforce in the agricultural sector. Here are some of the effective innovations in poverty eradication in Rwanda.

4 Innovations in Poverty Eradication in Rwanda

  1. e-Soko: e-Soko is an Agricultural Market Pricing Information System that the World Bank has funded. It seeks to empower farmers to make more informed decisions on farming by allowing them to access pricing information through ICT. The program also connects the Ministry of Agriculture with the farmers in sharing key information and continues to provide weekly market prices of farm produce available online. In 2019, the World Bank scored Rwanda a trading food indicator of 69.19 out of 100, which is a measure of domestic farmers’ use of regulatory processes for agricultural production. In 2020, RDB and FAO partnered in a three-year project dubbed “Support local suppliers’ capacity development and promote e-commerce in Rwanda” for smart solutions in horticulture, livestock and agribusiness.
  2. Girinka: Loosely translated as “may you have a cow,” Girinka is an initiative to alleviate poverty in rural communities that the Rwandan Government spearheaded in 2006 in collaboration with several NGOs. Based on the Rwandan traditional practice of giving cows as gifts, the Rwandan Government granted heifers which provided milk to combat malnutrition in children, commodity through sale of dairy products and improved agricultural output through their organic manure. By 2017, 85% of the projected households had received a heifer each with a total of 298,859 heifers distributed. A survey from 2012 showed that 79% of the households were food secure. The initiative, also known as One Cow per Poor Family, has been a success story among the innovations in poverty eradication in Rwanda.
  3. The One Laptop per Child Initiative: The Ministry of Education in Rwanda is committed to providing equitable, quality education for a skilled workforce in order to drive socio-economic development. To achieve this, the Government introduced changes in basic education such as a new Competence Based Curriculum that emphasizes social skills and application skills; the curriculum aims to reach a developing a workforce that is more productive. In line with this, in 2008, the Government launched an ICT program for primary schools labeled as the One Laptop per Child Program to increase understanding in mathematics, sciences and technology. As of 2019, 58% of primary schools, 85.4% of secondary schools and 51% of tertiary institutions in Rwanda were using ICT in teaching and learning. For the primary schools, 79.9% had science kits and 25.5% had a science laboratory. As of 2020, RDB put Rwanda’s literacy rate at 73.2%.
  4. Mobile Employment Services: In 2019, RDB introduced the Kora Portal, an online employment site that is one of the innovations in poverty eradication in Rwanda. RDB further provided buses and ICT experts to take the services to remote parts of Rwanda. By 2020, the portal had registered 965 jobs, 62 employers and 4,800 job seekers. The portal also has a skills database that recorded 95,000 graduates. This was in line with the Government’s aim to create 1.5 million jobs by 2024. As of November 2019, Rwanda’s unemployment rate was at 15.4% in comparison to 14.3% in February 2018.

Prospects

Rwanda aims to become a middle-income country by 2035 and a high-income country by 2050. In its Vision 2050, the RDB’s National Skills Development and Employment Promotion Strategy seeks to boost investment in the country, advance skills in the workforce and build on emerging technologies all to transform Rwanda’s socioeconomic status. The World Bank Group projected Rwanda’s annual GDP growth rate to be at 6.9% in 2021 in comparison to a low of 2% in 2020 from a high of 9.4% in 2019. Through the innovations in poverty eradication in Rwanda, the country’s socio-economic status should keep growing.

– Beth Warūgūrū Hinga
Photo: Pixabay

/by
, , , , , , , ,

IMF Financing Softens Blow of the Pandemic in Jordan

IMF in JordanJordan, bordered by Saudi Arabia, Iraq, Syria and Israel, is an Arab country in the Middle East. The country is on the East Bank of the Jordan River yet relatively landlocked. It has accordingly received a massive influx of Palestinian and Syrian refugees. Recently, the International Monetary Fund (IMF) in Jordan provided two different forms of economic relief to people in light of the ratio of debt to its gross domestic product (GDP) and the current pandemic. Read more about the IMF in Jordan below.

The Effects of the Pandemic on Jordan

Jordan’s economy will experience contraction in 2020 due to the effects of COVID-19. The pandemic-induced lockdown significantly impacted 250,000 daily-wage workers and businesses facing a liquidity crisis. It also delayed foreign investment, trade and tourism. The latter industry generates $5 billion annually for Jordan.

Only 11.3% of respondents in a UNDP survey claimed that their income was unaffected by the pandemic, which has significantly impacted young adults. In the survey, 38.3% of respondents experienced challenges getting clean drinking water, and 69.3% struggled with accessing basic healthcare.

Countries in the Middle East and Central Asia, including Jordan, will experience a 4.7% drop in its constant-price GDP, adjusted for the effects of inflation, in 2020. Additionally, the average size of economic relief programs in the Middle East was smaller than in other regions in the world. The Middle East and North Africa (MENA) oil-importing countries’ ratio of debt to income will reach 95% in 2020. Thankfully, the IMF provided $17 billion in aid to the area since the beginning of 2020. It also helped catalyze $5 billion from creditors.

The IMF in Jordan

Jordan’s four-year Extended Fund Facility (EFF) is a partnership between the Jordanian government and IMF staff, which focuses its $1.3 billion on growth, jobs and social safety nets. The loan program, approved on March 25, 2020, will create more jobs for women and young people. EFF funds finance the general budget, including health, education and social support, while also providing support to Jordan’s Syrian refugees.

Although the IMF in Jordan created the EFF funds before the pandemic, it changed the program to support spending on emergency outlays and medical equipment. The IMF in Jordan also helped secure congressional grants to ease annual debt, as public debt increased in the past decade to an amount equivalent to 97% of its GDP.

In addition, the IMF in Jordan approved $400 million in emergency assistance under the Rapid Financing Instrument (RFI) to fight the COVID-19 pandemic in May 2020. Due to the fall of domestic consumption during the outbreak, these funds answer companies’ and consumers’ borrowing needs. The government will spend the RFI funds through the national treasury account, where specific budget lines track and report crisis-related expenditures.

The emergency economic assistance allows for higher healthcare budgets, containment and support to vulnerable households and businesses. Moreover, it will ease external financing constraints and avoid loss in official reserves. The $1.5 billion balance of payment gaps, however, will emerge with increased public debt and a widened fiscal deficit.

Moving Forward

Despite the challenges presented by the pandemic, Jordan’s tech start-ups, global supply chains and exporting masks have helped its economy. Tech literacy, in particular, has been especially vital for Jordanian youth to find remote jobs. Moreover, the EFF program can ensure support for the people in Jordan by easing access to basic needs. The program will also help reduce the impacts of poverty by increasing social protection coverage on poor families.

Monetary and fiscal authorities in Jordan have reduced interest rates and delayed bank loan installments and tax payments due to the outbreak, injecting over $700 million in liquidity. Additionally, the country implemented a cash-flow relief program for companies. It also activated the National Aid Fund cash transfer program for daily wage workers.

Jordan has prioritized human safety for its citizens and refugees in the fight against COVID-19. So far, it has only had low to moderate numbers of per capita COVID-19 cases. Thanks to the help of the IMF in Jordan, the country seems to be on track to recover from pandemic.

– Isabella Thorpe
Photo: Flickr

/by
, , , , ,

Job Guarantees and Fighting Poverty

job guarantees
As global unemployment and food insecurity (as a result of the COVID-19 pandemic) rise — there is a great need for innovative macroeconomic solutions to mitigate the adverse effects of these crises on the world’s poor. The idea of a federal job guarantees has become more popular lately. This perhaps is a response to the mass international unemployment and recession caused by the COVID-19 pandemic.

Job guarantee programs, which have been implemented across the world, involve mass public employment for all people who are seeking a job. These programs are helping to lift millions out of poverty while also offering non-monetary health benefits. Creative ideas like job guarantee programs are imperative to consider when seeking solutions for the devastating harm that the COVID-19 pandemic has caused to the world’s poor.

The Benefits of Employment

Employment offers the obvious benefit of the income and the corresponding ability to provide for oneself and one’s family, monetarily. Mass public employment can reduce the need for many social welfare programs and replace them with salaries earned from substantive, productive and helpful work. In certain scenarios, job guarantees can provide healthcare, childcare and other benefits to the world’s poor.

Job guarantees can also provide individuals with non-monetary benefits that only employment can offer. Employment and higher income have been consistently correlated with better physical and mental health. Yet another reason why this type of program can be incredibly beneficial. Employment has also been linked to lower mortality rates and a reduced risk of depression and other mental illnesses. Furthermore, working individuals feel a higher sense of self-esteem and even recover more quickly from sickness, when employed.

Where It Has Worked

Countries across the world, most famously India and Argentina, have implemented employment guarantee programs. In Argentina, the government started the “Plan Jefes y Jefas” program in response to the country’s 2001 financial collapse. This program sought to improve public infrastructure such as sanitation, roads and schools by guaranteeing employment to any heads of households for a maximum of 20 hours per week.

The program specifically targeted female heads of households, as women are often left out of the labor force in Argentina and are quick to be labeled “unemployable.” In fact, 71% of the beneficiaries of the program were women. At the time, Argentina was classified as a developing economy — proving that job guarantees can thrive outside of the developed world.

In 2005, the Indian government passed the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) — which provided guaranteed jobs to India’s poorest rural population. The program has been an unprecedented success in raising wages for rural workers, helping women enter the workforce, increasing access to healthy foods and education and decreasing the number of people who unwillingly leave their home villages to seek employment in cities.

The program reached more than 54 million households, underscoring its ease of access. The success of the Indian job guarantee program demonstrates how transformative these types of programs are in fighting extreme poverty.

The Power of a Job Guarantee

Along with the individual relief that job guarantees provide, they also offer significant macroeconomic benefits. Job guarantees empower workers and increase their bargaining power against global conglomerates. Also, job guarantees can increase consumer spending and therefore boost tax income for developing governments. In that same vein, it is these very types of governments that would benefit greatly from the increased revenue. These programs can help steady the economy during recessions while also maintaining inflation through stabilizing purchasing power.

Job guarantee programs have serious potential to effectively fight poverty while also providing benefits to the governments that administer them. These programs have the potential to provide income, power, health benefits and other opportunities to the world’s poor. Moreover, as proven tools in the fight against global poverty, their use may be paramount.

– Garrett O’Brien
Photo: Flickr

/by
, , , , , ,

Closing the Gender Gap in India

Indian women
The coronavirus is disproportionately affecting women across the globe, setting back progress for global gender equality. Confined inside homes, women are shouldering more of the housework and childcare than their husbands, fathers and brothers. In India, a country where women are expected to fulfill homemaking roles, the gender disparities in housework between men and women are only growing more apparent, especially as more women exit the workforce. For Indian women, domestic unpaid labor consumes hours of their days and limits them to a life of financial dependence on their partners or a life of poverty. In India, two-thirds of the population lives in poverty. With the unemployment rate being as high as 18% for Indian women, compared to 7% for men in India, it’s inevitable that women make up a large percentage of this impoverished population.

Women’s Unpaid Role in India

While men in India complete less than an hour of unpaid labor each day, Indian women spend six hours of their day on unpaid labor. In comparison, men around the world typically spend around two hours a day on unpaid labor, while women spend four and a half hours.

Although the time and energy women put into cleaning and caring for children and the elderly are essential roles in economies, housework isn’t widely recognized as a form of labor. As part of their domestic responsibilities, Indian women must also retrieve water from wells, a chore that spans several hours and multiple trips in one day. Often lacking the aid of technology, Indian women must cook, clean and do laundry by hand.

Because women in India bear the burden of housework, they can’t maintain stable jobs outside their homes. This requires them to rely on their partners. This is in part due to the traditional patriarchal system India upholds. From a young age, Indian women are trained to fulfill roles inside the home. As a result, Indian women are excluded from the workforce, and young girls are pulled from schools to work inside the home, jeopardizing their education.

This reality has only grown over the years, as more and more women have exited the workforce. Over the past decade, the percentage of women in the workforce has dropped from 34% in 2004 to 25% in 2018, compared to the nearly 80% of men who work.

Why Female Employment Is Declining

The decline in female employment directly impacts Indian women’s risk of falling into poverty, as they are unable to financially support themselves. But up to 64% of women said they had to be responsible for housework as there were no other family members who would perform these responsibilities.

With a population of over 1.3 billion people, it’s increasingly difficult to secure a position in the Indian job market, and work positions designated for women are slim. On top of this, upon completing the same job as men, women earn 34% less in wages than their male coworkers. For women who manage to secure a job, their time is stretched thin as they complete both paid work and unpaid work. As a result, they are less likely to spend time on education, cultural and leisure activities.

There are exorbitant economic losses, though, when women are not welcomed into the workforce. According to an Oxfam report on female unpaid labor, the value of global unpaid labor performed by women amounts to at least $10.8 trillion annually, or, as the study suggests, “three times the size of the world’s tech industry.” By putting into context the monetary value of unpaid labor in society, the true economic loss of excluding Indian women from the workforce is undeniable.

In a step toward creating a more inclusive workforce environment for Indian women, the country passed the Maternity Benefit (Amendment) Act in 2017. The amendment increased the number of weeks for paid maternity leave from 12 to 26 weeks. But this act hasn’t led to a significant change in female workforce employment. Instead, the act could continue to negatively impact female employment. Newly responsible for covering the cost of additional paid maternity leave, companies may be less inclined to hire female workers.

Combined with the recent growth in female education and declining fertility rates, India’s economy is primed for welcoming women into the workforce. But the country must strike a balance between paid and unpaid labor, a gendered expectation rooted in Indian tradition.

Closing the Gender Gap: One Indian Woman’s Petition

One Indian woman is especially determined to redefine gender roles in India. Juggling unpaid labor at home along with her involvement in a charity for reproductive justice, Subarna Ghosh realized she was shouldering the majority of housework —particularly since the pandemic forced her family to stay home.

In July 2020, Ghosh decided to draft a petition on Change.org and describe her experience as a working woman in India expected to perform the majority of the housework. “Unequal distribution of unpaid household work has rendered the harshest blow to women across India during this lockdown. Yet, women’s care work continues to be invisible and no one wants to address this gross imbalance,” she wrote.

Directing her efforts at India’s Prime Minister Narendra Modi, Ghosh concluded her petition by calling on Modi to encourage Indian men to equally fulfill their share of housework. The petition has received over 75,000 signatures, mostly from women who stand in solidarity with Ghosh and relate to her experience.

Ghosh’s petition reflects the persistent struggle for female equality in India, as one woman’s experience echoes the experience of thousands. Only when women in India are given the same opportunities as men will they be able to earn their own financial independence.

– Grace Mayer
Photo: Flickr

/by
, , , , ,

Giraffe: One of the Innovations in Poverty Eradication in South Africa

Innovations in Poverty EradicationA new job-search platform in South Africa seeks to put an end to youth unemployment. Entrepreneurs Anish Shivdasani and Shafin Anwarsha founded an online company called Giraffe in 2015 to help reduce the staggering youth unemployment rate. Securing jobs for young South Africans is key to alleviating life-long poverty, as well as improving education and access to resources. The startup uses a specialized algorithm to match job-seekers to employers, making it one of the many innovations in poverty eradication in South Africa.

Solving Unemployment in South Africa

Around 40% of South Africans are unemployed, and the youth unemployment rate is even higher at nearly 50%. The government has made efforts to dismantle poverty and inequality since the end of apartheid in 1994 by building over two million new houses, improving access to clean water and distributing social grants to millions of people in poverty. The economy grew by roughly 3.5% yearly from 1998 to 2008, producing millions of new jobs. The financial crisis of 2008 halted some of this progress, but all efforts for improvement will neutralize if half of the country’s young people grow up outside of the job market.

With the long-term effects of youth unemployment in mind, Shivdasani and Anwarsha set out to curb the trend. In 2015, they introduced Giraffe to South Africa’s smallest province Gauteng, home of the country’s largest city Johannesburg. A year later, with 100,000 job-seekers signed up, they brought Giraffe to the greater metro areas of Cape Town and Durban. Today, over 1 million people have joined the platform as well as thousands of businesses, both small and large, looking for the right match.

The App That is Not Just for Smartphones

As one of the innovations in poverty eradication in South Africa, Giraffe’s success is a direct result of its ease of use and technological innovation. Anyone with a cellphone that has an internet browser, not necessarily a smartphone, can use the service. Job-seekers must first visit Giraffe’s website from whatever device they have available, and then fill out a form that takes about eight or nine minutes. The company then creates a CV for the user and uploads it to their database. Employers have a short sign-up process as well.

From there, Giraffe’s algorithm does all of the work, matching the right candidates to the right jobs. The algorithm will even set up the interview at an agreed-upon time. Most recruitment agencies require an agent to contact both parties and review qualifications by hand. Giraffe works faster and keeps costs extremely low for businesses by employing technology instead, charging up to 30 times less than other recruitment agencies. The platform is free for job-seekers.

The Future of Giraffe and UNICEF’s Innovation Fund

In July 2020, Giraffe became a recipient of funding from UNICEF’s Innovation Fund, along with 10 other start-ups around the world that are focused on eradicating inequality of opportunity for young people. In recognition of the importance of education and skill-level on employability, Giraffe intends to use the money to build a job-seeker content portal, drawing from Giraffe’s labor market data and highlighting the most in-demand skills. The new feature will help educate and upskill young people to improve their career prospects and will hold Giraffe to a higher standard as one of the newest innovations in poverty eradication in South Africa.

In addition to the funding, Giraffe now has access to UNICEF’s team of innovators and networks, and plans are in place to make both the matching algorithm and content portal open source for other global organizations to use.

– McKenna Black
Photo: Flickr

/by
, , , , ,

How Delivery Apps Aided China During COVID-19

delivery appsWhen China was at the peak of its COVID-19 outbreak, unexpected lockdowns affected well over 700 million people. Hundreds of thousands of these people grew anxious and engaged in panic buying, leaving essential stores depleted. Many people suffered from a lack of necessary supplies as a result. However, within days, supplies from all around the world began flowing into China. In order to comply with lockdown measures, many people turned to digital delivery apps to continue receiving their basic necessities.

Efficient Delivery

Despite its new uses during the pandemic, delivery technology is not a new concept in China. In fact, China has one of the most efficient delivery systems in the world. While other globally renowned companies, such as the U.S.-based e-commerce platform Amazon, pride themselves on rapid, two-day delivery, China’s home delivery apps can be at your door within minutes.

These digital delivery platforms, better known as wai mai xiao ge (which directly translates to “takeaway lad”), have flourished throughout the country. Whether users need to order takeout, groceries or even a portable phone charger, these delivery apps can do it within minutes. Though these platforms were originally seen as a convenient method to receive goods, they soon turned into a vital lifeline after China enacted stay-at-home measures during the COVID-19 pandemic.

Creating Jobs

Besides aiding those at home in need of essential goods, wai mai platforms have also greatly benefitted the deliverers themselves. Meituan Waimai, one of the most prominent on-demand delivery companies in China, created over 336,000 jobs for wai mai drivers as the coronavirus surged. These new jobs were vital opportunities for those who lost their primary source of income during the crisis.

Zhang Shuai, a 24-year-old delivery driver from Zhengzhou in Henan province, works in Shanghai, one of the largest and wealthiest cities in China. Shuai signed up to work with Meituan Waimai when COVID-19 cases began to grow because it was too difficult to find any other job. However, his delivery job with Meituan Waimai now provides him with $1,400 per month, a wage that is higher than the average urban salary in Shanghai.

Many workers from remote, rural villages also use these jobs with delivery apps as an opportunity to move to more urbanized cities and establish a less regimented life for themselves. While living in the village, many people from rural China worked in factories that often required a specialized skill set and a peer who could provide a recommendation for them. However, the same workers can get hired as a deliverer in a metropolitan city soon after verifying their identity and credentials. Once hired, they can receive better pay than what factory work would provide.

The Future of Meituan Waimai

As the pandemic continues, home delivery systems also continue to grow with it. Prior to the COVID-19 outbreak, Meituan Waimai was a $46 billion business. However, within the last few months, it has reached a record high at $100 billion amid the virus and is projected to continue growing from there, providing more job opportunities as it does so.

– Heather Law
Photo: Pexels

/by
, , ,

What You Need to Know About Homelessness in Taiwan

homelessness in taiwanHomelessness is a pervasive problem in all parts of the world, even in places that seem as technologically advanced as Taiwan. While Taiwan has made headlines for its fast-growing economy, its government has been stringent with social safety nets, providing little help or resources to their homeless population. The fact that homelessness in Taiwan is a problem at all is surprising. Taiwan has one of the lowest poverty rates in the world and a high rate of homeownership; almost 85% of households in Taiwan own their homes.

Even still, Taiwan does have a homeless problem, especially in the capital city of Taipei. While there are homeless shelters, most of them are privately funded and have long waiting lists to get in. But the major problem facing homeless people in Taiwan isn’t access to housing, it’s access to stable employment. With this in mind, local groups within Taipei have been creating innovative strategies to help the homeless within the city, which contains the majority of Taiwan’s homeless population. Here are some important facts about homelessness in Taiwan, as well as the creative solutions being proposed to help the homeless get off of the streets.

Demographics

The homeless are often under-counted. While almost 9,300 people were reported as homeless in 2017 (almost double the number reported in 2013) this statistic may not be completely accurate. As long as a person’s family has some form of housing, they would not be considered homeless even if they are currently sleeping on the streets. Without accurate data, the government and other organizations can not properly address the problem of homelessness in Taiwan.

Taiwan’s homeless tend to be elderly, male, blue-collar workers. The exporting of production-line jobs to China, combined with Taiwan’s increased housing prices, has caused many factory workers to lose their jobs and become homeless. The majority of the workforce was men over 50, who are now the majority of the homeless in Taiwan. While the average age of homeless people in Taiwan is 55, they usually have only received an elementary school education, making it hard for them to find employment.

Causes

Low birth rates contribute to homelessness in Taiwan. Wages are stagnant while prices increase, making it harder for people to afford to have children in Taiwan. This decrease in birth rates has led to an older population, which in turn leads to elderly people getting abandoned due to the lack of resources within a family.

There is a stereotype against the homeless. A common opinion among society in Taiwan is that homeless people are “naturally inclined” to become homeless, whether that be because they like to roam the streets or they simply dislike working. However, a 2013 study showed that 90% of homeless people were on the streets due to circumstances out of their control; long-term unemployment was cited as the number one reason for homelessness in Taiwan. In “Living Conditions of the Homeless in Taipei,” Shu-rong Li showed that almost 50% of people were homeless due to an inability to pay rent. Not only that, but landlords were more likely to deny renting to single men ages 55-65 because of concerns about their economic statuses.

There is not enough government housing in Taiwan. Only 3% of the total housing stock in Taiwan is publicly-funded government housing. Because of this, it can take up to seven years to get into public housing, whereas private housing is almost immediate. Private housing (outside of major cities) is the popular choice of homeless people who need a place to live.

Solutions

There are already groups working on the ground in Taipei to end homelessness in Taiwan. Their solutions usually center around helping the homeless get back into the workforce. The Homeless Taiwan Association provides just these opportunities: in the organization’s Hidden Taipei tours, they train and employ homeless people to give tours of the city. In its first year in 2015, the Hidden Taipei tours attracted almost 2,000 customers and received many favorable reviews.

Not only does the Homeless Taiwan Association employ homeless people, but the organization also works to provide shelter, social service, counseling, and legal aid to those on the streets. They say that the way forward to end homelessness in Taiwan is by helping the homeless become self-sufficient, changing the stigma around homelessness and enhancing the public understanding of poverty.

– Hannah Daniel
Photo: Pixabay

/by
, , , ,

Zambia’s Mining Industry Strikes Gold

Zambia's Mining IndustryThanks to the abundance of mineral deposits in Zambia, investors have continued to flock to the country in spite of the pandemic-fueled economic downturn in many parts of the world. By deeming gold a critical mineral, the government is actively expanding Zambia’s mining industry by mandating that Zambia Consolidated Copper Mines Investment Holdings PLC (ZCCM-IH), a mining consortium, “drive the gold national agenda.”

Productive Mining Partnerships

Zambia’s government is a major investor in ZCCM-IH. Array Metals and ZCCM-IH have formed a partnership through Consolidated Gold Company Zambia (CGCZ). Array Metals determined that the venture will immediately generate local employment for 300 people. Mining is expected to commence sometime in June 2020 and will lead to another increase in employment. The establishment of new and competing mining firms will be beneficial for Zambia by encouraging a rise in gold production, increasing the national GDP and creating new opportunities for local employment.

Potential Profits from Gold Mining

With an approximation of 16,500 pounds of gold (around $400 million in value) within gold ore in Mumbwa, Zambia, continued investments in the Republic of Zambia are indicative of an economically auspicious future for the country. The gold mine is situated in Central Province, Zambia, and had been shut down for years before exploratory studies revealed the previously undiscovered resources within.

Roughly $2.5 million in capital has been devoted to the beginning portion of the project alone, with CGCZ aiming for an initial yield of 3 metric tons of gold (about $150 million in value).

How Zambia is Improving the Local Gold Mining Industry

According to CGCZ’s CEO Faisal Keer, “CGCZ is partnering with various small-scale gold miners in the country by providing mining technical expertise, and providing access to earthmoving machinery and gold processing lines to kick-start and boost their gold production.”

Since the majority of local miners mine through the process of gold panning, one focus of another partnership between ZCCM-IH and Karma Mining Services is to improve Zambia’s local gold mining efficiency. While CGCZ is only operating in the Mumbwa and Rufunsa districts of Zambia, there are more than 60 sites for gold mining. Local miners have also partnered with other foreign investors.

Although there is no official documentation, some have profited off illegally mining and smuggling gold out of Zambia. The government’s newfound focus on Zambia’s local gold mining has the perk of bringing lawfulness to a previously unformalized industry. In that spirit, the “government has given artisanal miners gold panning certificates to legalize their alluvial or riverbed gold mining activities.”

By supplying licensed miners with machinery, equipment, and knowledge about the industry through ZCCM-IH and CGCZ, Zambians are encouraged to participate in Zambia’s local gold mining. The formalizing of the gold mining industry will benefit more than Zambia, for it will enable licensed miners and locals to “reap the benefits of the assets under Zambian soil.”

– Carlos Williams
Photo: Flickr

/by
, , ,

The Outlook of Poverty in Honduras

Poverty in Honduras
Honduras is a large, scenic country located in Central America with a population of nearly 10 million people. Historically, its abundance of natural resources has staked it as a vigorous player in many international economic industries, namely agriculture and mining. The country has also grown in many statistical categories; its population, global rank and GDP growth rate have increased steadily in the last five years. Ostensibly, Honduras has a strong foundation for economic prosperity, which should be encouraging for all of its citizens and leaders. However, a closer examination reveals that these improvements mask poverty issues that the country continues to struggle with. This struggle leads to poor quality of life for the average citizen of Honduras. Here is some information about poverty in Honduras.

Economic Problems

The main problems that cause poverty in Honduras are wealth distribution and low income. These issues impact an alarmingly high percentage of the country’s population. According to the World Bank, about 48% of the population lives below the poverty line, which includes over 60% in rural areas. Urban areas exhibit a lower percentage of impoverished citizens, but it remains high among global standards. Honduras frequently ranks high globally on the GINI index, which calculates the level of economic disparity among classes, and hosts a diminutive middle class, making up a mere 11% of the population.

Employment rates are dismal as well, with unemployment/underemployment around 40% as of 2015. Underemployment manifests itself in two different ways: when a person is working a job not commensurate with their skills due to a lack of opportunity (invisible) and when a person is working insufficient hours at a job or receives insufficient pay to support their family (visible). An example of invisible underemployment is a local man who has the requisite talent and education to be a lawyer. A scarcity of opportunity in his area leads him to a mining job that pays less and is much more physically grueling. Underemployment is rampant in Honduras and contributes to a working-class that has low morale and scarce opportunity to excel in their field of choice.

Other Factors Affecting the Economy

Violence is the largest internal factor in punctuating the nation’s economic problems. Honduras is among the deadliest countries in the world, according to the World Bank. The high rates of homicide and violence are detrimental in many ways including how they impact education. According to a U.N. agency report, more than 200,000 children stopped attending school between 2014 and 2017, due to the prevalence of gang violence in and around the school environment. The report also gathered that teachers were the third-most displaced group between 2016 and 2017. The Honduras government documented 83 murdered teachers between 2009 and 2014. Additionally, there were over 1,500 student deaths due to gang violence between 2010 and 2018. The expansion of gang culture makes education secondary to survival. This problem has stunted the system for years, translating to a lack of skilled labor and vibrant industry.

Another antecedent to structural poverty in Honduras is political instability. The Economist Intelligence Unit Democracy Report labeled Honduras as a hybrid regime, which is where a country holds elections that are susceptible to voter fraud and manipulation. As recent as 2017, the country endured an election crisis that led to nationwide unrest, rioting and dissension on the premise of suspicion that the voting had been rigged. Tenuous leadership has let corruption run rampant, economic disparity worsen and access to food decline.

The Solution

Organizations such as Proyecto Mirador and CARE/Cargill are working diligently to quell poverty in Honduras. The former is a project that provides stove-building jobs for families. This initiative creates an easy and profitable venture for lower-class people who have no other options. Its website reports that builders have constructed and installed over 185,000 stoves in Honduras. Meanwhile, CARE and Cargill partnered in 2008 to create an initiative that supports women in agriculture, both nutritionally and economically. The program is investing $10 million over three years in Village Savings and Loan Associations. It also employs advocacy strategies designed to ignite agricultural policy change that benefits the lower-class farmer. The partnership originated in Honduras and has now expanded to reach 10 countries in total, directly impacting nearly half a million people as of 2018.

The United States has intervened in many Central American countries to mitigate gang violence with Project GREAT, a police-taught gang violence prevention program. The program aims to teach young people how to avoid gang life and to repair the fractured relationships that many of these communities have with local law enforcement. Project GREAT gathered 87,000 student participants in 2017, hoping to breed a sense of optimism among the young community. By doing so, Project GREAT seeks to dissolve the presence of gangs in the future.

Beating poverty in Honduras requires systemic change initiated from the top. It takes resources, both internal and external, to silence gang culture, restore safe education and uproot government corruption. Once the lower-class of Hondurans begins to escape the cycle of poverty, that is when economic industries will begin to thrive. The future of Honduras relies on the viability and strength of its youthful working-class.

– Camden Gilreath
Photo: Unsplash

/by
, , ,

5 Facts About Renewable Energy in Taiwan

Renewable Energy in Taiwan
Renewable energy in Taiwan has not always been a priority. However, in recent years, more companies and businesses are starting to push renewable resources to the forefront. This is having a huge effect on both the economy and international relations. By investing in these renewable resources rather than importing fossil fuels, Taiwan will become more self-reliant. Here are five facts about renewable energy in Taiwan.

5 Facts About Renewable Energy in Taiwan

  1. Oil still supplies 48 percent of energy to the country. Renewable energy in Taiwan is not as popular as in Brazil, where renewable energy supplies more than two-thirds of the country with power. However, Taiwan has begun to shift its focus towards more renewable resources. Diversifying fuel sources has advantages. By being able to harness solar and wind power, Taiwan can depend on its own nation for power rather than importing coal from other parts of the world. Currently, Taiwan imports 98 percent of all of its non-renewable energy. Adding locally sourced solar and wind power could help create jobs, adding to the domestic economy.
  2. Taiwan is investing $1 trillion into renewable energy. This investment, which will take place over the next several years, should make Taiwan one of Asia’s greenest countries. The money will go towards building solar panels, wind panels and green roofing. Additionally, the government will spend some of the funds on denuclearizing Taiwan. The Taiwanese government reports this will create at least 20,000 new jobs while increasing the overall amount of renewable energy powering the country by 20 percent.
  3. Renewable energy in Taiwan is a major focus over the next few years. With the new trillion-dollar investment, Taiwan will begin a new era prioritizing renewable resources. By the end of 2020, Taiwan will add an additional 2.2 GW of solar power nationally. By the end of 2025, Taiwan should continue growing and supply approximately 20 GW of solar power. The plan is to build the solar panels on rooftops and in agricultural areas. Around 1,000 hectares of farmland will redevelop into a solar farm to boost the overall renewable energy in the nation.
  4. Taiwan has a Green Bond System. Starting in 2013, the Green Bond System has been helping Taiwanese businesses raise funds for their environmentally-friendly products. Many different types of projects can use the Green Bond System. Some examples are projects related to climate change, renewable energy, environmental protection and carbon reduction. Denmark-headquartered wind energy company Ørsted used these green bonds to develop wind farms in Taiwan. This helps to create new jobs by funding businesses that may not receive financial assistance otherwise.
  5. Renewable energy solutions are helping to reduce poverty. By increasing access to renewable energy, Taiwan should continue increasing the overall national employment rate, which will lower the poverty rate. While the exact number of new employment opportunities is unknown, the Taiwanese government has assured the population that jobs will continue to grow with the renewable energy sector. There will also be opportunities for data engineers, machine learning scientists, data scientists and many business marketing jobs. A report from 2019 showed that there is a 12 percent increase in the technology sector for jobs relating to renewable energy. The data also points out that after just 12 months in a job, many employees receive a 15 percent salary increase.

Renewable energy is proving to be a very promising sector in Taiwan. It is providing new jobs to citizens and improving the overall way of life. By creating its own renewable energy, Taiwan is quickly becoming a more self-reliant and resilient country. With this continued focus, the nation will generate more opportunities for its citizens while helping to fight climate change.

– Asha Swann
Photo: Flickr

/by