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Archive for category: Global Poverty

Key articles and information on global poverty.

Global Poverty

How Credit Access in Bosnia and Herzegovina Impacts the Economy

Credit Access in Bosnia and HerzegovinaPeople often sing the praises of microfinance as a means of encouraging entrepreneurship and growth in developing countries. Without a doubt, microloans are a resourceful tool. With the encouragement of the international community, they have been used rather extensively to help improve the ease of credit access in Bosnia and Herzegovina. That being said, it is important to view microloans not as an economic panacea, but as a component of the overall financial sector that can and does affect other aspects of the developing economy.

The economic crisis that began in 2008 continues to affect credit access in Bosnia and Herzegovina. In addition to causing extended deflation, which hurts small businesses, it also left lending institutions very risk-averse, especially where small and medium-sized enterprises are concerned.

The situation is not all bad. There is an unusually large number of financial institutions in the country and the demand for credit is beginning to increase as the economy grows. This increase in demand is also caused by the growth of many small businesses. Unfortunately, conservative lending practices mean that while it would appear that would-be borrowers have plenty of options, it can still be difficult to get a loan. Additionally, high taxes and complicated regulations mean that there is a large informal sector in the country, further complicating the small business environment. Some of these informal operations are able to undercut their formal counterparts, making competition difficult and hampering people’s ability to get a loan.

The U.S. Agency for International Development (USAID) is attempting to bring about change. Its Development Credit Authority Loan Guarantee facility backs up to 50 percent of the loan principal for borrowers deemed too risky for a regular loan. USAID is improving credit access in Bosnia and Herzegovina by enabling borrowers to secure financing who would otherwise be rejected.

However, it is important to consider how improving credit access in Bosnia and Herzegovina might have unintended impacts. This growth in access to microloans without broader changes in the macroeconomy has meant that while it is easier to secure financing to start a business, the same cannot be said for securing financing to grow an existing business.

While the international community has stepped in to encourage microloans, they have not done the same to encourage banks to make larger loans available to medium-sized enterprises seeking to grow. While many banks claim to offer this kind of financing, the reality is that many will only lend to the most exceptionally qualified applicants, and even then the rates and terms offered may simply not be feasible for the borrower.

This means that there is an ever-growing cohort of businesses in the country that are too large to benefit from microloans but too small or still too risky to borrow from domestic banks. This is a major hurdle to clear before credit access in Bosnia and Herzegovina can really be said to have improved.

It is also important to consider the impact that improved credit access in Bosnia and Herzegovina may have on education. One recent study found that 16 to 19-year-olds in Bosnia and Herzegovina whose parents received microfinancing for their family businesses were nine percent less likely to be regularly attending school. This figure jumped to 19 percent when the adults in the household had only a primary school education.

This is not to say that improving credit access in Bosnia and Herzegovina for small businesses isn’t a worthy endeavor. It most certainly is, and it can and does lift people out of poverty. However, it is important to also provide continued support and acknowledge the ways that this issue interacts with Bosnia and Herzegovina’s broader economic circumstances to ensure that this money is able to make a real difference.

– Michaela Downey

Photo: Google

February 18, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-18 19:30:502024-12-13 17:58:37How Credit Access in Bosnia and Herzegovina Impacts the Economy
Global Poverty

Credit Access in El Salvador Growing Among Rural Population

Credit Access in El SalvadorThe country of El Salvador is known for being the smallest and most densely populated country in Latin America. It has the twelfth-highest GDP in the Americas. A large portion of its economic growth comes from remittances.

Meanwhile, agriculture, which had fallen off in the 1990s, continues to play an important role in the economy as it employs 25 percent of the country’s labor force. Coffee and sugar, El Salvador’s main exports, account for a significant portion of the agricultural sector. But despite its comfortably high GDP, 32.7 percent of its citizens live in poverty.

A significant obstacle to alleviating poverty is limited credit access in El Salvador. In particular, while banking is common and easy to obtain in larger cities like San Salvador and Santa Ana, the poor, especially in rural areas, have the most difficulty. Of the 40 percent of the population with low income, only 6 percent have accounts at financial institutions. And while access has grown, most banks do not have branches outside of the major cities.

To combat this, in 2013 the World Bank funded and developed a program that, through technical assistance, supported the Salvadoran authorities in developing legal frameworks and financial services. The World Bank team provided a framework for financial correspondents (third parties such as grocery stores and pharmacies) that authorized them to provide basic financial services. As well, the World Bank provided feedback on models of regulation for mobile banking and electronic banking.

Through these efforts, the World Bank was able to legally enact a framework that allowed for those third-party groups to carry out basic financial services. And between December 2013 and May 2014, basic banking transactions through third parties totaled nearly US $45 million. By utilizing technical channels outside of banks themselves, the World Bank has been able to provide credit access in El Salvador for all its citizens.

And in 2010, the International Finance Corporation, which is a part of the World Bank, financed a $30 million project specifically for micro-financing. Based on remittance flow, which accounts for more than $2.8 billion of El Salvador’s GDP, this project will establish a new funding platform for Fedecredito, a cooperative of 55 El Salvador credit unions and banks. Through support from the World Bank, which will grow Fedecredito’s portfolio by up to 25 percent, Fedecredito hopes to use this new structure to give credit to over 30,000 micro-entrepreneurs.

Through these programs, credit access in El Salvador has improved, especially for the rural poor. As these projects continue and El Salvador gains more stability, hopefully, their citizens will have more economic freedom.

– Nick McGuire

Photo: Flickr

February 18, 2018
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Global Poverty

Sustainable Agriculture in Uzbekistan Addressing Mistakes of the Past

sustainable agriculture in UzbekistanUzbekistan is the most populous nation in central Asia, with over 32 million citizens. It is a landlocked country with little precipitation (3.9 to 7.9 inches annually), but its landscape includes two rivers and the salty Aral Sea. Despite the dry area’s water sources, decades of misuse of the rivers and sea have led to degraded land and Uzbekistan’s high reliance on exported crops like cotton. A new generation of citizens now counters the mistakes of its predecessors as they strive toward sustainable agriculture in Uzbekistan.

Cotton – Profit Over Environment

Uzbeki leadership employed poor practices, originally implemented by Soviet leadership in the 1950s, to cultivate the cotton crop through large-scale chemical use, inefficient irrigation systems and poor drainage systems. Each variable contributed to soil degradation and high soil salinity (salt content of the soil).

The higher the soil’s salinity, the harder plants must work to absorb water. Even if the soil is at proper saturation, if the salt content is high enough, plants will wilt or even die from the high expense of energy. The process of diverting water from the Amu Darya and Syr Darya rivers that fed the Aral Sea led to the desertification of what was once the fourth largest saline lake in the world. The extremely high concentration of salt in the small body of water left behind affects the soil of its boundaries with a high level of salinity.

The sea is now less than 10 percent of its former size and the eastern basin, which dried up completely, is now known as the Aralkum Desert.

“Modern Slavery”

Further, Uzbekistan employed even poorer labor practices. The cotton industry saw state workers directed away from their occupations during harvest season and out to the fields picking cotton. The practice met the definition of “modern slavery” as outlined by the Global Slavery Index, as the workers received little to no compensation for their extra work and were under the alleged threat of expulsion from their state jobs if they did not participate in the harvest.

Labor and agricultural policies were enforced under the leadership of President Islam Karimov, elected in 1991 after Uzbekistan declared independence from the Soviet Union. Shavkat Mirziyoyev became the nation’s second president in 2016 following the death of Karimov. Mirziyoyev has since publicly denounced the traditional labor practice and initiated reforms across the labor and agriculture sectors.

Time for Crop Diversification

A 2013 study on the possible outcomes of developing land for crops besides cotton found a high potential for more efficient water use, as well as farm income for the area’s dryland citizens. The multiyear study indicated that crop diversification would also assist farmers in wetland areas that will be affected by the climate-driven decline water availability. The article concluded that crop diversification was key to sustainable agriculture in Uzbekistan.

That same year, the World Bank financed the Sustainable Agriculture and Climate Change Mitigation project. The project objectives are to introduce renewable energy and technology for energy efficiency to the agriculture (agribusiness and farms) sector, and to improve the degraded irrigated land and water conservation practices.

The project looks to secure the objectives by implementing three components:

  • Promotion of renewable energy technologies, especially by supporting the circulation of knowledge and information through training and goods
  • Promotion of best practices and technology to mitigate the irrigated land degradation
  • Advisory services and project management

Horticulture Development

In 2014, the Horticulture Development Project initiated the shift in focus from heavily relied-upon exports like cotton to sustainable agriculture in Uzbekistan. By growing its own fruits and vegetables, the nation will realize growth in sector-crossing agribusiness and through its more diverse economy.

The project’s three main components include agricultural support services, access to credit and project management. The World Bank partners with the International Finance Corporation for the project to develop solutions to implementing food safety practices, improving competitiveness, agricultural lending and understanding the supply chain.

Uzbekistan must overcome the inheritance of neglectful policies, rising above the mandates of 1950s Soviet Russia and the heavy-handed culture of the Kamirov-led 1990s and 2000s. Through aid and the drive to emerge victorious, Uzbeki will citizens create sustainable agriculture on their way to creating a fully sustainable nation.

– Jaymie Greenway

Photo: Flickr

February 18, 2018
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Disease, Global Poverty

Major Efforts Toward Fighting the Cholera Crisis in Africa

cholera crisisThe Eastern and Southern countries in Africa face a serious cholera epidemic. This epidemic displays the lack of public sanitation as well as neglect from the government that many African countries face.

Cholera

Cholera is a diarrheal illness caused from an infection of the intestine with bacteria called vibriocholerae. The symptoms of the illness include: diarrhea, vomiting and leg cramps, and such loss of body fluid can lead to dehydration and sometimes shock. Oftentimes, death can occur within only hours without treatment.

Since the start of the New Year, there have been over 2,009 cases and 22 deaths in the countries in Africa facing the cholera crisis. Zambia, one of the countries in southern Africa, faced the worst of the epidemic, with more than 74 deaths since October of 2017. The main area where Zambia’s impacted with cholera is in their capital, Lusaka. The government banned street food from vendors in the capital to reduce the number of cases, but in return, caused violent protests from the vendors.

Cholera Causes

The government, along with the World Health Organization, states the cause of the cholera crisis is poor waste management and lack of personal hygiene. These factors cause the contamination of food and water, which in turn, can spark the epidemic.

To help with the cholera crisis, the government has sent in the army to control measures, clean the markets and unblock drains. An oral vaccine program was also launched with the goal of immunizing one million people, and since its implementation, the number of cholera cases have dropped.

Cholera Effects

The effects of the cholera crisis have not just been deadly, but also have forced public places to close. Many schools, churches and workspaces are deferred until they can contain the outbreak. This impediment puts citizen jobs, payment and education on hold.

The World Health Organization (WHO) suggests the prevention of cholera consists of clean water, sanitation and reminding communities of basic hygiene behaviors that includes hand washing with soap after using the bathroom, before eating or touching food.

The WHO also suggests there should be media regarding health education messages for these reminders, and the implementation of routine antibiotic and immunizations if available.

– Chloe Turner

Photo: Flickr

February 18, 2018
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Global Poverty, Government, Politics

Understanding the Basics: What is a Parliamentary System?

What is a Parliamentary System
Many in the United States may be aware that most Europe governments use a parliamentary system, but the question most are probably thinking is: what is a parliamentary system? More importantly, how is it different from the system used by the United States? Here are the answers to these questions and more.

Basics of a Parliamentary System

In terms of the U.S. system, a country’s parliament would serve as both its legislative and executive branches. The most important thing to know about parliamentary systems is that the political parties hold the power and not individuals. When citizens vote, their ballots list party names and when a party wins, seat allotment is assigned to party members based on seniority (in most cases).

When a party wins the majority of seats, it then selects a leader to serve as the executive called a Prime Minister or, in some cases, a Chancellor. This person will most likely already be the party leader and they then select their cabinet which sets the government’s agenda. If one party does not win the majority of seats in the parliament, then it must form a coalition with other parties to form a majority.

This process may take time, but it will eventually allow for the smoother passage of legislation.

One House or Two?

Many parliaments are bicameral, meaning it has two houses, while others may be unicameral, having only one house. In bicameral systems, there is a lower and an upper house, but most legislating actually takes place in the lower house.

The greatest difference between the two is the number of veto points or places where legislation can be halted within the legislative process. Unicameral systems have fewer veto points than bicameral systems making it easier and faster to pass legislation but also easier to overturn. Many parliamentary systems therefore adopt the bicameral system for stability.

Parliamentary vs. Presidential

In a parliamentary system, the executive is the Prime Minister while in a presidential system, the President is the executive. There are many differences between these two positions, but most notably, the Prime Minister and his/her cabinet arises from the legislature, while Presidents are directly elected by the people.

At first glance, many would then prefer a President because citizens choose him/her directly, yet many still prefer Prime Ministers.

First of all, they are beholden to their party, so their decisions are far more predictable than a President’s and voters know exactly what values they are voting for. This applies for all members of the legislature as well, not just the Prime Minister.

Parliamentary systems also entail the possibility for a vote of “no confidence” by the legislature which can remove a Prime Minister from power at any point if they lose the vote. Presidents, however, have fixed terms and cannot so easily be removed.

Success Rate

Citizens in the United States are very fond of the presidential system, yet in reality the success rate for parliamentary systems is far greater. The system has been a part of some European countries for centuries, but that doesn’t mean it’s perfect. When deciding which system to adopt, new countries must consider what is best for its country, and that may or may not be a parliamentary system.

– Megan Burtis

Photo: Flickr

February 18, 2018
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Aid, Foreign Aid, Global Poverty

A Crucial Shift: How the US Benefits from Foreign Aid to Venezuela

U.S. benefits from foreign aid to VenezuelaGovernments may not always be straightforward with the way “freely-given” humanitarian aid to other countries is repaid. Many times, in exchange for helping another country solve a financial crisis or rebuild from a natural disaster, the benefactor receives greater access to resources or stronger political alliances with the country benefiting from aid. The ways the U.S. benefits from foreign aid to Venezuela has changed because the political turmoil turning Venezuela on its head is putting strain on the United States government.

Human Rights Defense

According to the U.S. Department of State, assistance from the United States to Venezuela is focused mainly on human rights issues, civil services and building up the strength of political interests in the area. One main interest in Venezuela is building a strong counter-narcotics network in the region, but recently the USDS has reported that Venezuela has failed to maintain the network to adequate levels.

Politically, this demonstrates the inability for the Venezuelan government to control its national defense programs, which became even more obvious after a presidential election putting Nicolas Maduro in charge, an action widely disputed for its legitimacy.  

Venezuela’s Economy

According to CNN, a major reason for this election and presidential cycle being so tumultuous is due to a decline in Venezuela’s economy, which is one area wherein questions arise about the way the U.S. benefits from foreign aid to Venezuela.

Another article from CNN Money states that the Venezuelan crisis spreads further than just a loss of democracy; it spreads to the pockets of the people as well. Venezuela’s cash revenue has fallen from $30 billion in 2011 to $9.9 billion in 2017. That drastic of a drop is causing a humanitarian crisis disproportionate to Venezuela’s economic capacity.

The U.S. and Venezuela

This being said, the United States remains one of Venezuela’s largest suppliers of goods. According to the U.S. Department of State, the U.S. exports nearly $8.3 billion to Venezuela include agricultural products, car parts and petroleum. In return, the U.S. imports a large number of oil products from Venezuela, totaling around $15.6 billion. However, this number has declined since the price of oil fell, causing an economic shift in Venezuela’s market.

This occurrence, along with a cash-poor economy, has pushed Venezuela into a crisis situation. With food being harder to get and inflation through the roof, humanitarian aid to Venezuela is going to increase in the next few years — that is, if the rest of the world wants to help stabilize the country.

A Global Shift

The way the U.S. benefits from foreign aid to Venezuela is going to change. As long as political alliances don’t shift too far from their current position, there is a high chance that the U.S., through increased humanitarian efforts and support for the agricultural and healthcare systems in the country, can help Venezuela recover before the nation degrades any further.

– Molly Atchison

Photo: Flickr

February 18, 2018
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Aid, Global Poverty, Humanitarian Aid

How the US Benefits From Foreign Aid to Belize

BelizeHistorically, U.S. foreign aid has always been a topic of discussion. The decision to help other countries in times of need incites a lively debate, and that has yet to change. These debates include Belize, a country that greatly benefits from U.S. aid, but the U.S. benefits from foreign aid to Belize as well.

 

Security

The U.S. government helps Belize fight organized crime and drug trafficking while regulating the number of migrant workers coming into America. The U.S. has helped strengthen the police force in Belize as well as improve the capacity to secure its borders. It has also helped improve citizen security and Belize’s ability to confront and disrupt criminal organizations that run rampant throughout the country. This is all in the effort to strengthen Belize as a country which will be beneficial to the U.S. in the long run.

 

Immigration and Tourism

The U.S. and Belize have always been very close as the U.S. houses the largest number of Belize nationals outside of the country itself. This is partly because of migrant workers that come to the country from Belize. The U.S. is a major source of investment funds and is the principal trading partner for Belize.  The U.S. also helps to promote tourism in Belize. The tourism often results in Americans retiring and moving to Belize permanently. This helps increase the revenue within the country, promoting economic growth while also exposing Belizean culture to Americans that had never experienced it before.

 

International Relations

Giving help to Belize depicts U.S. diplomacy and also helps with relations among all Latin American countries. The U.S. has operations in over 100 companies located in Belize which helps the Belizean economy while simultaneously assisting corporations in the U.S. All the while, these efforts increase international relations and positive American diplomacy.

These are just a few ways that the U.S. benefits from foreign aid to Belize, and as the relationship between the two countries continues to grow, more benefits will become apparent.

Belize has benefited substantially from America aid which has allowed an increase in economic status with attempts to end organized crime and illicit drug trafficking. U.S. foreign aid helped Belize improve the inner-workings of the country as well as citizen relations. Foreign aid has had a positive effect on Belize as a whole, and this is a trend that seems to be continuing as long as the U.S. is there to offer foreign aid to the country when it needs it.

– Simone Williams

Photo: Flickr

February 17, 2018
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Aid, Global Poverty, Humanitarian Aid

The Success of Humanitarian Aid to St. Vincent and the Grenadines

The Success of Humanitarian Aid to St. Vincent and the Grenadines

Composed of smaller islands in the southern Caribbean, St. Vincent and the Grenadines is known for its major sailing destinations and white-sand beaches. However, on Dec. 24, 2013, a heavy tropical storm plagued the islands. Heavy rains, flooding and landslides caused at least eight deaths and massive damage to the country. Declared a level 2 disaster by the government, regional assistance was requested seeing that local resources were limited. That’s when Britain stepped in.

Providing Humanitarian Aid

Britain was the first to offer humanitarian aid to St. Vincent and the Grenadines. Britain provided about $370,000 in early January 2014. In addition to the funds, London provided essential drugs and medical supplies. Water and sanitation equipment were also supplied in an attempt to curb spreading of water-borne diseases. The Pan American Health Organization (PAHO) supplied the goods on behalf of the U.K.

Also in 2014, the European Commission’s Department of Humanitarian Aid and Civil Protection (ECHO) granted €300,000 to bring relief to locations affected by floods. Humanitarian aid to St. Vincent and the Grenadines was granted due to the severe impact left behind by the low-level trough system. A trough refers to an extended time of relatively low atmospheric pressure that can bring clouds, wind shifts and rain.

St. Vincent and the Grenadines have a history of receiving humanitarian aid. In 2010, the Organization of Eastern Caribbean States (OECS) vowed to provide any and all support to the government of St. Vincent and the Grenadines following the destruction of a previous storm, Hurricane Tomas. This including engaging a team from the U.N. to direct macro socio-economic disaster impact assessments in the islands.

Updating Infrastructure

Still rebuilding from years of previous hurricanes and troughs, the Agence Française de Développement (AFD) offered $33 million to St. Vincent and the Grenadines and nine other islands to finance proper infrastructure projects. The AFD is a chief agency established by the French government. At least 50 percent of the funding will also go toward climate change adaptation and mitigation projects. Other areas to be funded are:

  • Renewable energy
  • Water and sanitation
  • Waste management
  • Updating infrastructure to combat climate change
  • Protection of coasts and rivers

The success of humanitarian aid to St. Vincent and the Grenadines gave the island hope. Every effort counted and the people of these islands knew they weren’t forgotten in their time of need.

– Tara Jackson

Photo: Flickr

February 17, 2018
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Aid, Global Poverty, Humanitarian Aid

The Success of Humanitarian Aid to Mauritania

humanitarian aid to MauritaniaMauritania is an impoverished country located on the west coast of Sub-Saharan Africa in the Sahel region. Of its 4.1 million people, 42 percent live below the poverty line. The population faces additional challenges of high youth unemployment rates and low levels of formal education. However, a huge decline in the poverty rate during the 2010s and successful projects in humanitarian aid to Mauritania place the country in a position to grow economically.

Mauritania gained independence from France in 1960 but has since seen two coups creating some political instability. The first occurred in 1978 and the second 30 years later in 2008. The second coup coincided with a time of poverty reduction, and the 2000s, in general, brought GDP growth for Mauritania. The mining industry is large in Mauritania and was a big factor in that growth due to an increased global value of minerals.

Humanitarian aid to Mauritania can help further boost the growth of the country and benefit the people. Below are four areas in which humanitarian aid has been a success.

  1. Finance – The World Bank has been involved with humanitarian aid projects in Mauritania since 1963 and is working on financial projects that benefit the people. There are currently eight projects that total over $370 million in aid to Mauritania. The projects align with the goal of creating jobs, as well as provide analytical work and technical assistance. Also, in 2012 the World Bank’s International Finance Corporation (IFC) invested $12 million in commercial banks to provide a $127 million two-year credit line so that Mauritania would have a stable source of energy products.
  2. Education – The World Bank is also involved in two educational projects in Mauritania. Mauritania’s population suffers from a lack of formal education and a 44% youth unemployment rate. These World Bank projects (totaling over $30 million) educate the population and increase the relevance and efficiency of vocational training in Mauritania. The projects are also working with training institutions to modernize them and improve their programs. Seven of these institutions already have performance contracts and three will be internationally certified to best prepare the workforce.
  3. Climate – Located in the Sahel region in Africa, Mauritania has a semi-arid climate. Additionally, as a coastal country, Mauritania faces challenges from sea level rise and erosion. Up to 30 meters of coastline is lost in any given year. To combat this, Mauritania is working with other countries, regional alliances and international partners. Mauritania is developing an investment plan based on environmental analysis that will be part of a foundation for its future sustainable development. Also, Britain’s Oxfam is working to help the population affected by recurrent climate crises.
  4. Food – A large portion of humanitarian aid to Mauritania focuses on food security and nutrition. The European Commission is working to prevent malnutrition of those most vulnerable in the population. Additionally, USAID is working with Action Contre la Faim (ACF or Action Against Hunger in English) to prevent malnutrition through cooking demonstrations and nutrition education. Further, they conduct screenings to identify children most at risk of malnutrition so they can be treated. They have contributed over $200 million to ensure food availability in Mauritania.

Despite the improvements in Mauritania in the 2000s, there are still many people living in poverty and the country faces development challenges. Humanitarian aid to Mauritania has been essential to helping the people of the country and will continue to help grow the economy.

– Hayley Herzog

Photo: Flickr

February 17, 2018
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Global Poverty

Infrastructure in Malawi

infrastructure in MalawiMalawians have faced many obstacles to the growth and development of their country. Malawi has struggled with successful infrastructure development due to economic and natural disasters and currently has plans in effect to reduce poverty and increase urbanization for its people. Because of its rapid population growth, urbanization and infrastructure in Malawi are crucial for the nation’s survival and success.

Scandal

Malawi’s poverty rate has barely changed from 2010 to 2016, falling from 70.9 percent to 69.6 percent. In 2014, Malawi faced an economic scandal known as “cashgate” in which government officials were laundering millions from government reserves. The cashgate scandal caused many donors to withdraw their funding, which resulted in more detriment to the nation because 40 percent of Malawi’s wealth comes from independent donors. While it was very publicized, it was not the first time donors withdrew from the Malawian government due to the corruption within it. This kind of scandal has affected Malawians, as well as infrastructure in Malawi.

Flood Crisis

Infrastructure in Malawi faced a large-scale flood in January 2016 which severely impacted the country’s development. The widespread flood wiped out several villages and much of the country’s agriculture. This has left Malawi in the largest food crisis in a decade. With a significant amount of damage to the country’s people and agriculture (part of country’s economic gains), the economy in Malawi has struggled to prioritize infrastructure development. Many solutions included providing short-term shelter for Malawians who had suffered from the disaster.

 

Non-Agricultural Development

While efforts to reboot the economy and its agricultural efforts continue, Malawi cannot keep up with its steady population growth. Due to the increasing population, farms are shrinking and limiting economic productivity. As agricultural jobs decrease, infrastructure in Malawi leans toward the creation of non-agricultural jobs in education, finance, and energy. Malawi currently uses hydro-power, and due to climate change and sporadic rain, the country often experiences water shortages and blackouts. Creating more infrastructure, especially providing additional resources for electricity, will benefit Malawi and increase the economy. The plans to develop in the non-agricultural sector will speed up the urbanization process for Malawians.

 

MGDS

The creation of jobs encourages the creation of infrastructure and vice versa. To combat the nation’s poverty, The Malawi Growth and Development Strategy (MGDS) was created in 2006. The goal of the MGDS is to encourage continued economic growth and infrastructure in Malawi. The MGDS is meant to create long-term jobs for Malawians in mining, trade, and tourism and culture. Another goal is to encourage the use of the environment and natural resources. Utilization of Malawi’s culture and wildlife will increase tourism to create more economic growth. Creating jobs within Malawi’s government, such as in the health and safety sectors, will also provide more growth for the nation’s economy and help the people of Malawi to overcome poverty. In addition to practical job creation and tourism growth, the MGDS will consist of urban improvements such as in airports, more media/telecommunications sources, and housing developments.

While the recent history of Malawi has not been hopeful, the country’s prospects predict a brighter tomorrow for Malawians.

– Courtney Hambrecht

Photo: Flickr

February 17, 2018
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