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Archive for category: Global Poverty

Key articles and information on global poverty.

Foreign Aid, Global Poverty, USAID

Understanding How the U.S. Benefits from Foreign Aid to Angola

U.S. Benefits from Foreign Aid to AngolaAngola is a country in southern Africa sandwiched between three nations: Namibia, the Congo and Zambia. The United States established diplomatic relations with Angola in 1993, shortly after Angola’s independence from Portugal in 1975. Between 1975 and 1993, Angola witnessed 27 years of violent civil wars among many groups with the backing of various world powers including the United States, the Soviet Union, China and other countries in Africa.

Angola continues to see repercussions from decades of war in the region. Roughly two-thirds of Angola’s citizens live in poverty, and much of Angola’s infrastructure has been destroyed by civil conflicts, war and lack of maintenance. The civil unrest in the region is also exacerbated by Angola’s possession of large oil reserves and a strong military force, creating a strong incentive for power struggles and polarizing forces in the region.

The U.S. benefits from foreign aid to Angola include providing food and food security, promoting democratic practices, providing disaster relief, providing better and more widely available health care and fighting the spread of disease in Angola. As well as these humanitarian efforts, the United States supports Angola in its efforts to utilize its agricultural abilities and sell oil reserves on the open market.

U.S. benefits from foreign aid to Angola have been in place since 1989 when the United States began providing large-scale disaster relief and humanitarian aid in the form of consumable material goods. In 1992, the United States Agency for International Development (USAID) began a relief and assistance program for Angola in the hopes that it would help prevent the region from falling back into the grips of civil conflict.

Unfortunately, the fighting did not stop and aid was suspended until 1995 when U.S. benefits from foreign aid to Angola resumed with millions being dispersed toward the rehabilitation of the agricultural sector and displaced children/orphans in the region. Much of the U.S. foreign aid dispersed during times of conflict in the area was provided in the form of material goods such as medical supplies and food, helping stabilize conditions and promote health and humanitarian causes.

Since the beginning of more peaceful times in Angola, U.S. benefits from foreign aid to Angola have provided over $1 billion in aid to programs directly helping the people of Angola. The year 2011 marked the 15-year anniversary of the full-time presence of USAID assistance programs in Angola, helping citizens rebuild and promote health standards in the country.

While aid dollars for humanitarian efforts have been successful in the region, it is important to remember that the primary U.S. benefits from foreign aid to Angola are to support leaders and governments that wish to take Angola down the road to a peaceful future. These aid dollars fund programs in Angola to increase credit access to citizens and governmental bodies, create fair and healthy economic conditions for trade and business expansion and create land registration systems to help prevent turf wars and property theft.

With the help of U.S. foreign aid dollars, Angola has made progress in installing leaders with a more peaceful vision for the future and a willingness to improve socioeconomic conditions for its citizens. The United States hopes to help Angola in its efforts to become the economic powerhouse it has the potential to be. With the help of programs like USAID, Angola has the potential to improve conditions not only for itself but the rest of Africa. With its agricultural and natural resources, Angola could prove itself to be one of Africa’s largest economic breadwinners.

– Dalton Westfall

Photo: Wikimedia Commons

April 28, 2018
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Developing Countries, Global Poverty

Important Investments in Infrastructure by the World Bank

Investments in Infrastructure by the World BankAiming to alleviate global poverty, the World Bank has provided the financial backing for the construction and reconstruction of vital infrastructures, such as roads, dams and electrical grids, to war-torn and developing countries since 1944. In the fiscal year 2017, the World Bank granted $59 billion for projects in developing countries.

There are currently over 2,600 active projects worldwide ranging from financial risk management to roads and railways. Investments in infrastructure by the World Bank toward developing countries start in the billions of U.S. dollars. Here are the top five most expensive pledges for active projects in developing countries.

Eastern Dedicated Freight Corridor—II (India)

Active investments in infrastructure by the World Bank in India include the Eastern Dedicated Freight Corridor. It is an expansion effort that increases the reach and efficiency of freight cargo transportation in India’s northern and eastern regions, from Ludhiana to Dankuni.

The Eastern Freight Corridor, a project originally approved in October 2011, is a series of three projects that aim to double Indian Railways’ carrying capacity. In April 2014, the World Bank approved a $1.1 billion pledge, with a total cost of $1.65 billion, for the second tier of the project. This phase is set to build a 393-km, double-track, electrified, freight-only railway with a 25-ton axle-load at 100km/h. This sector will span between Kanpur and Mughal Sarai.

Uttar Pradesh, the most populous Indian state, stands to benefit from increased access to employment, health and education for its citizens by the de-cluttering of roadways. Once completed in December 2019, the full stretch of railway will be 1,839 km and is expected to reduce greenhouse gas emissions by up to 55 percent.

IN Swachh Bharat Mission Support Operation (India)

In 2015, the World Bank agreed to fund $1.5 billion of a $2.2 billion sanitation project, the Swachh Bharat Mission (SBM) Support Operation. The project focuses on the construction and promotion of using toilets in rural areas in India, in which 67 percent of Indians live.

The project is a part of a universal sanitation initiative that seeks to end the practice of open defecation by 2019. Ten percent of deaths in India are associated with poor sanitation. India also misses out on six percent of possible GDP due to insufficient sanitation. Further investments in infrastructure by the World Bank will provide $25 million to aid state training programs to encourage usage of toilets in rural areas.

PMGSY Rural Roads Project (India)

The Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project was established in 2010 when India’s National Rural Roads Development Agency and the World Bank agreed to a $1.5 billion deal. The project provides all-weather roads, servicing the states Jharkhand, Himachal Pradesh, Rajasthan, Meghalaya, Uttarakhand, Uttar Pradesh and Punjab.

The World Bank’s investment fully funds the PMGSY program for five years and covers civil works expenditures and furnishes a technical assistance program to assist agencies running it. PMGSY Rural completed work in April 2018 on a 7,000 km rural road, which is the longest road assembly in a year since PMGSY began in 2000.

This is the second of multiple investments in infrastructure by the World Bank as a part of the PMGSY project, the first being a $400 million loan in 2004. It connected 9,900 km of rural roads in Himachal Pradesh, Jharkhand, Rajasthan and Uttar Pradesh. The greater PMGSY project aims for 375,000 km of roads, linking 178,000 habitations and refurbishing 372,000 km of existing rural roads.

South-West Roads: Western Europe-Western China International Transit Corridor (Carec 1b & 6b) (Kazakhstan)

Investments in infrastructure by the World Bank in Kazakhstan look to improve road management and traffic safety. The South-West Roads Project was approved in 2009 when the World Bank agreed to fund $2.125 billion of the $2.50 billion total cost. The project includes constructing a 1,500-km road connecting China and Western Europe from the Aktobe and Kyzylorda district border to South Kazakhstan.

Road construction provides a local economic boost. The World Bank’s end of the deal employs 30,000 to 35,000 people. The cost of workers, subcontractors and materials boasts $1.6 million in spending power. Four thousand South Kazakhstan workers receive $600 a month, compared to the latest estimates that show the average Kazakhstan citizen earns $525 a month.

Eskom Investment Support Project (South Africa)

The largest, active investment in infrastructure by the World Bank is $3.75 billion, funding the Eskom Investment Support Project. Approved in April 2010, the total $10.75 billion project provides support for Eskom to enhance its energy supply and security.

Much of the funding was allocated for completion of the Medupi Power Station, the fourth-largest coal-fueled power plant. Stirring controversy, the plant is expected to add an annual 25 million metric tons of carbon emissions. Eskom is already reported to contribute to a 40 percent share of South Africa’s greenhouse gas emissions.

Eskom is South Africa’s state-owned primary electricity producer and Africa’s largest facility in electricity production. There is concern about Eskom as a monopoly producer of electricity and, accordingly, a call for more contributors in South Africa’s energy market. The National Union of Metalworkers of South Africa is currently pursuing a legal interdict from the Gauteng High Court in Pretoria in an effort to prevent Eskom from signing 27 renewable energy contracts.

As the World Bank continues to strive for its main objectives–decreasing the percentage of people living on less than $1.90 a day and spurring income growth for the bottom 40 percent–these projects, with such immense lending, are promising for the future of some of the world’s most economically vulnerable populations.

– Thomas Benjamin

Photo: Flickr

April 28, 2018
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Global Poverty

The Media Misrepresents South Africa: But Here’s the Good News

Corruption often makes headlines when somebody writes about South Africa. Given the court case in progress against the country’s former leader, it’s not hard to see why. Added to past historical events, oftentimes the media misrepresents South Africa.

But there is more to South Africa than meets the media’s eye. It is a place with much to celebrate. Covering these points of pride is important for the morale of a country. Although the media misrepresents South Africa, some less-common stories with good news have made it through the cracks:

Selling Avocados in Record Numbers

For a country’s economy, agriculture is oftentimes a driving force. That’s why it is good news that South Africa is expecting to sell record numbers of avocados in 2018. After experiencing a drought in previous years, it comes as both good news and a pleasant surprise.

South Africa supplies a large number of avocados to European countries. Those in the country’s avocado industry hope to keep this market while opening up new ones this year.

Leading the way in Eco-Tourism

Tourists are taking advantage of the beautiful South African climate, and South Africa is taking advantage of the boosted audience for educating on water conservation. 

South Africa is a world leader in conserving water in tourism-related facilities. The industry takes small, powerful measures to conserve water in restaurants and hotels. These measures rub off on those that visit the country. While the media misrepresents South Africa, ecotourism speaks for itself.

Making Breakthroughs in Renewable Energy

Recently, South Africa signed several agreements to drive renewable energy forward. The plans include constructing a new solar plant that will provide sustainable power for hundreds of thousands of South Africans. An agreement like this comes as no surprise, given the country’s focus on conservation.

For the U.S., this news is a much more productive story to read than those of corruption. The supplier of the solar power plant, SolarReserve, Inc. is a U.S.-based company. The good news for South Africa is both an economic and environmental benefit in America.

Improving Women’s Rights

Countries across the globe struggle with pay inequality. The unfortunate reality is that women, on average, earn less for performing the same work as men. South Africa is not immune to this problem, but the country has made considerable improvements for women. 

By several measures, South Africa is making success in closing the pay gap. Women are being encouraged to take part in the business sector like never before. South Africa has been making steady improvement in this area as nearly one-third of the women in the country now have senior management roles.

Beyond this, women are engaging in entrepreneurial activity. Various programs help women to establish themselves and run prosperous businesses. When women’s lives improve, everyone wins. For women’s rights, the rest of the world could learn a lesson from South Africa.

Even though the media misrepresents South Africa, there is good news for this country spanning from women’s rights to avocados. Despite sensational stories of corruption, the real South Africa endures and its legacy will continue to endure regardless of news coverage.

That’s good news.

– Robert Stephen

Photo: Flickr

April 27, 2018
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Foreign Aid, Global Poverty

How the US Benefits from Foreign Aid to Côte d’Ivoire

U.S. Benefits from Foreign Aid to Côte d’IvoireCôte d’Ivoire, located in West Africa, is also known as the Ivory Coast. Agriculture dominates its economy, with oil and natural gases improving economic growth, too. Another aspect helping the economy is foreign aid, and the U.S. benefits from foreign aid to Côte d’Ivoire as well.

A Strong Partnership

The U.S. has been building diplomatic relations with Côte d’Ivoire since 1960 when it became independent from France. The U.S. mainly focuses on four areas to assist Côte d’Ivoire:

  1. Upgrading the health care system
  2. Facilitating democracy and governance
  3. Exploring economic potentials
  4. Improving security reform

In 1999, a coup in Côte d’Ivoire disputed elections and spurred rebellion. The U.S. assisted Côte d’Ivoire in moving beyond its decade-long crisis by restoring peace, offering more than 25 percent of the funding for U.N. operations in Côte d’Ivoire. Later on, the U.S. Agency for International Development promoted the African Growth and Opportunity Act (AGOA), which is a U.S. Trade Act issued on May 18, 2000.

U.S. Benefits from Foreign Aid to Côte d’Ivoire in Trade

Since then, the U.S. and Côte d’Ivoire have shared bilateral economic relations, and the amount of U.S imports from Côte d’Ivoire grew from $384 million in 2000 to $1,163 million in 2016. This is just one of the ways the U.S. benefits from foreign aid to Côte d’Ivoire.

Côte d’Ivoire is viewed as one of Africa’s fastest economic growing countries. From 2006 to 2016, Côte d’Ivoire’s gross domestic product has grown from $17.8 billion to $36.3 billion. In 2015, Côte d’Ivoire exported $12.7 billion in products and 29 percent was cocoa beans. Another noticeable product was refined petroleum, which composed 8.8 percent of the country’s exportation.

AGOA created duty-free imports for certain products from several sub-Saharan African countries. This act further stimulates the U.S. and sub-Saharan African trade and investment and integrates sub-Saharan African economy into the global picture.

Côte d’Ivoire’s economy is heavily based on the agricultural sector, especially cocoa beans. The U.S. is one of the biggest cocoa beans consumers and has easier and cheaper access to import cocoa beans from Côte d’Ivoire. In 2016, the U.S. had imported $834 million of cocoa beans from Côte d’Ivoire. AGOA eliminates extra costs for the U.S. on daily necessities. In this way, the U.S. benefits from foreign aid to Côte d’Ivoire.

A Boost for the Future

In Nov. 2017, Côte d’Ivoire signed $525 million compacts from the U.S. Millennium Challenge Corporation. The money will be spent in a five-year period to stimulate economic growth and eliminate poverty.

The government of Côte d’Ivoire will contribute another $22 million to various projects, such as the Abidjan Transport Project, which can maintain and improve transportation conditions. Another project receiving funding will be the Skills for Employability and Productivity Project, which will facilitate education systems and provide more opportunities to access secondary education.

Côte d’Ivoire is becoming an even stronger country with U.S. support. Its economic development is accelerating, and its social system is improving as well. Now, Côte d’Ivoire is trying to move its economic anchor from agriculture to other aspects. The U.S. benefits from foreign aid to Côte d’Ivoire will increase if Côte d’Ivoire can develop into a more integrated economic model.

– Judy Lu

Photo: Flickr

April 27, 2018
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Development, Economy, Global Poverty

The Mechanisms and Determinants of Development

Determinants of Development
The enduring issue of why some countries are rich while others remain poor has long been the subject of great interest among scholars. New research on the determinants of development, though, appears to better identify the driving force behind development by taking an incisive look at the three traditional economic explanations for these cross-country disparities – economic policy, political institutions and geography.

Based on the findings, the researchers conclude that the primary determinant of developmental success may be the strength of institutions.

Economic Policy, Political Institutions and Geography

The research first laid out the traditional arguments for the importance of policy, institutions and geography as determinants of development.

All three are pretty straightforward: economic policy, such as a nation’s savings rate and the strength of its currency, clearly dictate, to some extent, the economic vitality of a country; geographic factors can also matter, for instance, a landlocked country like Chad – without access to the ocean or major rivers – is at a natural disadvantage because trade becomes a logistical nuisance; institutions — like the rule of law to maintain public safety, ensure property rights, and mitigate corruption — still were found to have a greater impact.

However, the researchers’ revelation was not just that policy and geography took a back seat in importance to the role of institutions in development, but that they were, independently, hardly influential at all. Research sampling 72 countries found that while poor policies may hurt growth rates temporarily, they did not have the sort of impact on long-term income levels that many had previously suspected.

Promotion of Stable Institutions

The relationship between geography and development was a bit more complicated. Although nations with poor geography and stable institutions still do well, the authors acknowledge the role geography often plays in promoting stable institutions historically.

Specifically, nations colonized by Europe in unfavorable regions (in regard to disease and other conditions) were typically turned into rentier states and dealt poorer institutions. Conversely, regions which could be settled were afforded European-mainland style institutions: democracy, property rights and the rule of law.

Determinants of Development

So, Europe’s unique colonial history shows that geography did affect the type of institutions implemented in various countries, and it is these institutions that explain differences in development.

In a sense, the revelation that among the determinants of development, growth is primarily a function of institutions should be somewhat heartening, as institutions can be reformed. Therefore, instead of nations across Sub-Saharan Africa and parts of Central America being condemned to second-class status economically, focus can shift to the ways their poor institutions can be altered to better catalyze development.

Although researchers failed to explain the means of doing so directly, recognizing that building robust institutions is the best path toward progress is an important insight.

– Brendan Wade

Photo: Flickr

April 27, 2018
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Global Poverty, Government

American Bar Association Strengthens Rule of Law in Saudi Arabia

Rule of Law in Saudi Arabia
The rule of law in Saudi Arabia
was developed and strengthened through a partnership between the American Bar Association (ABA) and the Prince Sultan University College of Law in Saudi Arabia.

American Bar Association

The ABA was formed more than 130 years ago at a time when lawyers generally worked with domestic matters and learned the law trade by apprenticeship. International law, though, was a theme of one of the seven committees first established by the ABA, and acknowledged the importance of law in a global setting.

Lewis Powell wrote in 1965 as the ABA president about the association’s endeavor to identify “what lawyers can do of a practical character to advance the rule of law among nations.” He also identified that “the only viable alternative to the rule of force is the rule of law.”

In today’s globalized society, the ABA enforces the importance of rule of law or democratic governance in many nations like Saudi Arabia. The association states that an impartial and calculable rule of law in a country will lead to good international relations.

Rule of Law Initiative

The Rule of Law Initiative (ROLI) was created by the ABA and acts as an international development initiative to advocate for justice, economic opportunity and human dignity through the rule of law.

The initiative identifies that breaches in the rule of law have bolstered many international challenges, encompassing health pandemics, migrants escaping poverty, vicious extremism, and illegal trade of weapons, drugs and human beings. Promoting the rule of law would help alleviate these challenges, create national security and furnish economic opportunities both in the affected nation and in the United States.

Since the first rule of law program in 1990 worked exclusively in Central and Eastern Europe, the ABA then created rule of law initiatives in other nations. In 2007, the ABA decided to consolidate the five overseas rule of law programs to formulate the ROLI. 

Today, the ROLI program and more than $40 million in annual funding from governmental and private donors combines staff and consultants to work with the pro-bono expertise of ABA members to promote legal reforms in more than 50 countries.

The five core principles of the institution are:

  • Partnership
  • Empowerment
  • Inclusivity
  • Universality
  • Sustainability

To prioritize sustainable solutions to the rule of law challenge, the ROLI collaborates with in-country partners, encompassing government ministries, judges, lawyers, bar associations, law schools, court administrators, legislatures and civil society organizations. Rule of law in Saudi Arabia and other nations bolsters a more peaceful world.

ABA ROLI Partnership with Prince Sultan University

Beginning on January 21, 2018, the ABA ROLI and the Prince Sultan University College of Law in Saudi Arabia combined forces to teach 26 female law students applicable skills like accounting principles applicable to legal practice, law practice management, legal writing and oral advocacy.

The project consisted of a month-long series of classes with each week presenting on one of the applicable skills to the legal practice. The classes were taught by five pro-bono legal experts from the United States, bringing decades of legal experience to share with the aspiring law students.

This month-long development session was the first of its kind in Saudi Arabia, and it provided practical skills courses that allowed female law students to gain experience on successful strategies for advancing their legal professions.

The ABA ROLI partners with many law schools worldwide to advance curricula, create clinical legal programs and strengthen skills-building activities. As evidenced by the partnership for rule of law in Saudi Arabia, the association’s assistance in preparing the next generation of legal professionals serves as a wonderful omen for future success.

– Andrea Quade

Photo: Flickr

April 27, 2018
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Foreign Aid, Global Poverty

The Ways How Foreign Aid Has Benefited Costa Rica


Costa Rica sits just above Panama in Central America, and foreign aid has benefited the nation so well that could be considered the overall standard for the effectiveness of foreign aid. This claim comes with a disclaimer and compliment to Costa Rica: Costa Rica is unique in that the will and dedication of the people caused Costa Rica to hold onto a tradition of democracy and relatively stable governments. This type of behavior and system is not always the case when it comes to the regions that receive foreign aid.

A stable government can help increase the effectiveness of foreign aid. Even after a substantial economic downturn during the 1980s and defaulting on is loans from the International Monetary Fund (IMF), Costa Rica was able to economically recover with guidance from the IMF — a success  often considered controversial.

United States’ Withdrawal from Costa Rican Aid

By 1996, the United States’ International Development Fund closed its mission in Costa Rica. In the last ten years, the United States government has allocated less than $50 million in foreign aid to Costa Rica.

During the years that IMF imposed economic planning, Costa Rica was able to begin to diversify its economy. Before the 2008 economic crisis, large tech firms shifted the manufacturing of microprocessors and other hardware to Costa Rica.

The investment from international business before 2008 helped shift Costa Rica away from its agrarian-based economy. Currently, only 5.5 percent of Costa Rica’s 58.91 billion GDP is attributed to agriculture, 21 percent of the GDP comes from industry and 73.5 percent is from the service and tourism industry. It can be seen that foreign aid has benefited Costa Rica due to the nation’s survival of the 2008 economic crisis.

Diverse Economy and Loan Qualification

Due to its new, more stable and diverse economy, Costa Rica was able to qualify for loans from the IMF and other international banking organizations. Although it weathered the storm, Costa Rica is still paying the price — its credit rating was downgraded in 2017.

In March of 2018, the United Nations and Costa Rica agreed to United Nations Development Assistance Framework from 2018-2022 to help both the private and public sectors of the nation. The plan seems to target sectors and institutions hit hardest by increased public and government debt post-2008.

Due to Costa Rica’s reliance on foreign direct investment, a downgraded credit score has the potential for a loss in those investments, making aid more risky for investors. Poverty still remains between 20-25 percent in Costa Rica, so stabilizing its economy and increasing FDI is extremely important for the nation as a whole.

To Remain Steadfast While Promoting Growth

While the economic story of Costa Rica seems akin to a roller coaster, it will hopefully stabilize again with the help of the United Nations. Foreign aid has benefited Costa Rica in other ways as well. Due to the relatively stable economy, Costa Rica spends 7 percent of its GDP on the education system, a decision that has caused the youth literacy rate (ages 15-24) to increase to 99 percent.

The country also boasts a nearly 100 percent primary school graduation rate, and a low teacher-to-student ratio of 1 to 13 in primary school and 1 to 14 in secondary school. The United States Peace Corps has maintained a presence in the education system of Costa Rica since 1963.

How Foreign Aid Has Benefited Costa Rica

Foreign aid has benefited Costa Rica immensely in the 20th and 21st Centuries. Due to the wise use of aid, Costa Rica was able to remain firm and grow, albeit slowly, though the 2008 economic crisis which made every country in the world stumble.

As the country steadies itself with only slight economic assistance in the coming years, it will hopefully regain its secure footing. And this is the aim of most foreign aid — to help a nation prosper so that it can one day stand on its own.

– Nick DeMarco

Photo: U.S. Air Force

April 27, 2018
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Developing Countries, Global Poverty

Practical Solutions in Averting Financial Crises in Developing Nations

Financial Crises in Developing Nations
Financial crises in developing nations have been an uncomfortably common occurrence. This presence has necessitated a guide for avoiding such debilitating economic events. Corruption and the impact of exchange rates are often the culprits of fiscal destabilization, and poor monetary choices, and often result in hyperinflation and tremendous harm. There are some practical antidotes, though, for addressing concerns to assist low-income nations in averting financial ruin.

The Cost of Corruption

There is an important relationship between corruption, foreign direct investment and domestic lending. The impact is pretty simple: corruption makes a nation’s potential FDI benefactors run for the hills, and leaves the riskier practice of bank lending as the primary mechanism for new capital. This occurs because foreign investors have few assurances that they could successfully operate in an opaque environment with weak property rights (as an example).

Corruption does more to dissuade FDI than exorbitant tax rates and other poor conditions, according to some analyses. State-owned banks accentuate the issues caused by relying on lending for capital investment because many engage in dubious lending practices like “connected lending” – a convenient euphemism for nepotistic banking. As a result, banks often disregard the imperative to issue economically sound loans.

To remedy these concerns, one suggestion is the foreign ownership of banks, as they mimic the effects of FDI by pairing capital with better technology and managerial experience, along with a better regulatory apparatus.

Rates of Exchange

Another pertinent issue regarding financial crises in developing nations is exchange rates. Fixed but adjustable exchange rates have historically exacerbated financial turmoil because they were seen as more stable than they actually were. Additionally, in the case of large foreign currency debts during a recession, lowering interests rates to stimulate the economy would force out FDI and further hurt the currency.

Instead, managed-floating currencies help stability because they afford greater awareness of the volatility of exchange rates, thereby promoting more prudent investments.

Printing Problems

Many financial crises in developing nations are triggered by hyperinflation, which is typically defined as sustained inflation rates of over 50 percent. When governments get into trouble with debtors, they often are forced to print money to afford their loans. This increases prices dramatically, making ordinary products unaffordable.

Many countries dependent on oil revenues have fallen victim to the affliction of hyperinflation. When oil prices surge, they increase their budgets accordingly; but, when the price of oil craters, they are often left with bloated budgets and cannot pay back their debts without resorting to a printing spree.

To insulate them from this, experts suggest establishing an independent central bank which would not print excess money to bail out imprudent spending. Although poor nations have historically been susceptible to financial crisis, there are practical solutions they can adopt to guard against them and usher in greater financial stability.

– Brendan Wade

Photo: Flickr

April 27, 2018
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Global Poverty

#Goals: The Combo of Soccer and Poverty in a Desperate World

Soccer and Poverty
Nelson Mandela once said, “sport has the power to change the world.” If that’s true, the four billion soccer fans around the globe today hold the greatest amount of power. Soccer enjoys a popularity level almost double that of the next most popular sport.

Inherent in that popularity is a responsibility to give back, to use that influence to impact some of those who hold the sport in the highest esteem — the world’s poor. In truth, soccer and poverty often exist together, but poverty is the unwanted relative that has overstayed its welcome.

Soccer’s Best Pitch

Soccer and poverty may meet on level ground, but some organizations dig their cleats into the earth, and find traction against a familiar foe. Franco Silva — who created the organization Kizazi which fights poverty at its root through micro loans furnished through the purchase of soccer balls — understands that soccer not only unites, but for many, forms identity.

“When people are young, we tend to tie our identities—who we are—to what we do, to what we’re good at. We define ourselves with external things,” he said.

What happens when those external things cease to be? For many people living in developing countries, especially youth who have difficulty finding jobs, the ennui of the day-to-day necessitates a healthy outlet.

A Healthy Outlet

In Tanzania, that outlet is a football (soccer) program called Lengo, which provides player sponsorship and positive role models that ensure continuation of education and enough capital for families to start small businesses; in other words, a positive step in breaking the cycle of poverty.

In Uganda, the nonprofit Soccer Impact Uganda focuses on the development needs of impoverished communities. What starts as an activity that brings communities together soon snowballs into long-term projects like:

  • installing reserve water systems
  • finding alternative sources of energy
  • providing medical care
  • delivering textbooks and other educational materials, and
  • helping with construction and renovation projects.

Halfway around the world from Uganda, the Mexican Soccer Federation launched the “11 Plays for Health” to promote healthy habits in vulnerable communities based on a similarly named strategy that parts of Africa have already successfully implemented.

The power of soccer has extended to the revolutionary in places like Cairo, Egypt, where the cheers of a football tournament can drown out the angry noise of violent political protests.

In fact, soccer and poverty go so hand-in-hand that an actual tournament exists called the Homeless World Cup. The foundation was created in 2003 and now hosts teams from over 75 countries, all of whose citizens have faced homelessness and social marginalization in one form or another.

Other Sports that have Joined the Fight

At the very least, sports initiatives are doing their part to oust poverty. From Nairobi, Kenya, where youth meet weekly to do yoga, to Jakarta, Indonesia, where a badminton tournament strives to instill leadership skills and confidence in a nation’s youth, a war has been waged between sports and poverty.

At the heart of this war, grass roots initiatives and innovation take command. Soccer and poverty both cling to desperation, but a new front line stands ready to strike.

– Daniel Staesser

Photo: Flickr

April 26, 2018
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Global Poverty

How the Media Misrepresents African Countries Today

Media Misrepresents African Countries
Despite still being associated with the reputation as the “Dark Continent” and branded the “wild jungle” by modern media, African countries still continue to remain invigorated by massive growth and economic potential. Yet, at the same time, the continent is still shrouded by a certain degree of allure and mystery. African nations remain an integral part of a rapidly and shifting wave of urbanization and globalization.

The African continent is home to over 1.2 billion individuals in 54 diverse countries; moreover, the population is estimated to grow to two billion over the next three decades or so.

Media Misrepresentation

The media misrepresents African countries in reference to the continent’s history and global assumptions about the continent. Media photography can act as a near-constant stream of visual propaganda as it predominantly showcases scenes of violence, devastation and starvation in regard to Africa. Unfortunately, media coverage of this nature may lead to the propagation of misinformation and stereotypes.

As a consequence of this focus, success stories, development projects and growth in nation-states are not given as much coverage as media misrepresentation of African countries. For example, of the aggregate 6-9 percent of African coverage in the international media, over 60 percent of the focus revolves around terrorism, famine, disease, political conflicts, disasters and other calamities. News coverage often doesn’t explore the true roots of social and economic issues in African countries.

The mainstream media occupies a significant part of international discourse and has the capacity to influence public opinion and perception about key global issues. As the media misrepresents African countries, seemingly misleading coverage is showcased which could be a possible impediment to promoting social progress and development in the region.

Personalization Bias and Common Misconceptions

A common cause of this impediment is a deficient coverage of the current affairs of African nations. This can be attributed to a term called ‘”Personalization bias” that has caused African media coverage to decline after a temporary spike in the year 2005.

One of the ways the media misrepresents African countries is in regard to women. Contrary to conventional beliefs that women are excluded from participating in numerous aspects of African labor and culture, women in African countries actually have the highest rate of participation in the labor force, standing at over 86 percent.

Additionally, regional growth among African countries was predicted to reach 2.6 percent in 2017, and the 2018 growth forecast is projected to reach 3.2 percent. The expanding economies of Angola, Nigeria and South Africa and the non- commodity intensive economies like Senegal, Djibouti and Tanzania contribute heavily to this forecast.

Furthermore, South Africa is now one of the fastest growing economies in the world and was recently added to the ranks of the BRICS alliance alongside countries like Brazil, Russia, India and China. In the future, this designation can lead to further foreign investment and economic opportunities for the country as well as a better international credit rating.

Paving the Way to a Better Future

Many countries in the region are now hoping to boost both public and private investment to improve the quality of infrastructure domestically.

Despite the obvious negative connotation and stigmas attached to poverty among African nations, the topic still remains one that should be addressed in a positive and pragmatic manner. With a higher proportion of success stories about this beautiful region reaching the news circulation, the international community may become more encouraged to get involved in addressing such underlying issues as poverty in the future.

– Shivani Ekkanath

Photo: Flickr

April 26, 2018
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