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How Labor Unions Can Alleviate Poverty

Developed nations are witnessing a steep decline in labor union participation. Labor unions are organized groups of workers who negotiate decisions concerning their working conditions. From 1985 to 2017, union membership declined by 13%. Several factors have contributed to this decline, however, labor unions are important as they play a role in reducing poverty across the world.

The Decline in Labor Unions

The recent trend toward globalization has admittedly fostered business competitiveness. However, this threatens labor unions due to the belief that unionization can harm a company’s ability to compete internationally. This belief stems from the strong negotiating power of unions, forcing companies to pay and treat their workers well, which many international companies do not have to do. In addition, organizational and technological changes have threatened union longevity. The final contributing factor is the decline of the manufacturing sector, a sector that is more likely to support unionization than other industries.

Along with the organizational factors contributing to the decrease in labor unions, the societal understanding of the value of labor unions is also decreasing. In part due to mass propaganda campaigns and anti-labor advertising unleashed by businesses in the last three decades, there is a growing sentiment that these organizations are no longer useful or necessary. This sentiment poses a direct threat to workers throughout the world as these organizations play an important role in poverty reduction.

Decrease in Economic Inequality

Labor unions play an important role in decreasing economic inequality. Unions provide people with the power to negotiate, which in turn, strengthens the middle class and increases salaries for blue-collar workers. Unions give power to people in lower positions in companies so they can negotiate and work for better wages. Unionized workers are typically able to raise their wages by 20% through negotiation.

White-collar workers do not reap the same benefits and labor unions play an important role in stopping runaway incomes for people at the top. This gives power to the middle class and reduces the power of the top 1%. Not only do higher wages for blue-collar workers support the workers themselves but they also boost economic mobility for future generations. By empowering workers to collectively bargain for higher wages, labor unions have played a vital role in the rise of the middle class.

Healthcare

Because members of labor unions can negotiate better benefits, they are 30% more likely to have healthcare benefits than non-union workers. Additionally, these healthcare benefits are typically higher quality than baseline coverage. On average, unionized workers are more likely to have health plans, including dental and vision care. Quality health insurance plays an important role in reducing the risk of poverty. The CDC finds that workers who possess and utilize health plans are more productive. Increased productivity among workers provides a foundation for educational and workplace success.

Along with increasing productivity, quality healthcare can reduce the risk of medical debt-induced poverty. Medical coverage for working adults can also cover the worker’s children. This is important as children who have medical coverage are less likely to develop chronic health conditions. Through family care, labor unions provide workers and their families the resources necessary to remain in good health, achieve success and protect their futures.

Work-Life Balance

Labor unions provide workers with the chance to negotiate better working conditions, including more paid time off. Unionized workers have 26.6% more vacation time on average than non-unionized workers. This time off is important for a work-life balance, overall longevity and family time. Children who spend quality time with their parents are more likely to be physically healthy and are less likely to partake in risky behaviors such as drug and alcohol abuse. Furthermore, these children are more likely to stay in school and achieve academic success, helping them secure well-paying jobs in the future. By supporting a work-life balance, labor unions ensure that households have a pathway out of poverty.

In these ways, labor unions play a vital role in reducing poverty. By increasing wages, strengthening the middle class, providing healthcare access and facilitating quality family time, labor unions can help people break cycles of poverty.

– Haylee Ann Ramsey-Code
Photo: Flickr

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Agriculture Cooperatives in Impoverished Communities

Agriculture Cooperatives in Impoverished CommunitiesFor the estimated three-quarters of the global impoverished residing in rural environments, agriculture is the primary source of income. Any aspirations of poverty eradication are existentially dependent on the development of these communities. Cooperatives are associations of people who come together to achieve common economic, social and cultural goals. The long-standing tradition of agriculture cooperatives in impoverished communities, where small farms pool resources, is a potential component of an efficient policy to offset the ravages of endemic poverty in agrarian economies.

A Moment in the Sun

Designated by three branches of the United Nations, 2012 was the International Year of Cooperatives. One of its primary ambitions was to highlight the financial disadvantages of small farms and the potential for inter-community economic unions to fight poverty. Agricultural cooperatives, having an impact that “cannot be overstated,” figured heavily into U.N. recommendations and initiatives. Creating 20% more employment opportunities than multinational ventures, agriculture cooperatives in impoverished communities provide a long-term potential for sustainable job creation, which is paramount to poverty eradication.

Harvesting Prosperity, a 2020 World Bank report, concluded that funding agricultural productivity is twice as effective at reducing extreme poverty as alternative methods. Crucially, the exhaustive report details the belief that industrial farms are the gold standard of high-yield agriculture. Contrarily, current research on “the inverse relationship hypothesis” questions the correlation between scale and productivity. Because impoverished rural communities are overwhelmingly populated with small-scale subsistence farms, one cannot overstate the essentiality of agriculture cooperatives in impoverished communities.

Being unique entities based on democratic principles, each cooperative has distinct requirements that defy a universal approach. The economic complexities of members serving as both suppliers and owners create multifaceted organizations with financial and social obligations, as opposed to a corporate performance that is based solely on finance and profitability. The dualistic nature of cooperatives as inherently business and community actors gives these organizations a great deal of leverage to impact the well-being of their communities.

Portuguese Traditions in the Age of Globalism

Over the long history of wine-making cooperatives in Portugal, these unions have consistently allowed members to garner higher prices and greater market share while simultaneously improving value chains and decreasing transaction expenses. Additionally, Portugal has garnered attention as cooperative bylaws are enshrined in the constitution, making them integral to the national economy.

With 39,506 vineyards in the Douro wine-growing region alone, the long-term economic future of an essential component of Portuguese national character requires the implementation of structural reform. Cooperatives represent 46% of regional production in Douro and Port. With most farms under one hectare, individual producers must combine resources to vinify grapes. But, after several failed governmental attempts at modernization in response to globalism, agricultural cooperatives have been stymied by encroaching foreign markets.

Upon Portugal’s entry into the EU in 1986, a direct-to-consumer model that sustained wine cooperatives became untenable as cheap imports via larger wine-producing nations like France and Italy brought competition. Furthermore, environmental and geographic factors prevented Portuguese vineyards from countering increasing imports through higher production. Often inefficient bureaucracies, a slow transition, accompanied by foreign investment allowed Quintas — independent for-profit producers — to flourish. Many Portuguese wine agriculture cooperatives in impoverished communities did not survive the opening salvos of globalism.

Think Local, Act Global

The culling of slow-responding cooperatives has forced researchers and policymakers to develop a framework for adaptability. Several organizations, native and foreign, contribute to shaping and communicating the strategies for agriculture cooperatives in impoverished communities.

  • CASES: As previously noted, cooperatives must satisfy social obligations in addition to economic concerns. At Cooperativa Antonio Sergio para a Economia Social (CASES), an NGO focusing on the interrelatedness of finance and society, an alliance of Portuguese Creditors finances various cooperatives throughout the economy. A €12.5 million endeavor, Social Investe enabled several wine cooperatives to fund various projects and improvements.
  • PDR2020: The active involvement of governmental agencies is crucial to structural reform. Wine industry infrastructure is notoriously expensive and beyond the resources of independent producers. A federal initiative, Programa de Desenvolvimento Rural de Portugal (PDR 2020), funds agricultural purchases that are particularly crucial for Portuguese vineyards. These grants, amounting to €37.5 million in 2020 alone, also help farmers adapt to increasingly frequent climatic abnormalities that disrupt production.
  • Fenadegas: In order to affect the regulatory environment, wine cooperatives actively lobby for policy reform. Difficult at the individual level, Adegas Cooperativas de Portugal (ACP) is a coalition of 41 members and represents a unified agenda for addressing distinct exigencies of the industry. Additionally, the organization provides a global marketing platform, helping one cooperative survive the COVID-19 pandemic by increasing exports by 18% in 2020.
  • SALSA: The dual requirements of integrating with the local economy and tailoring production while simultaneously developing global strategies present major challenges. With the intergovernmental organization Small Farms, Small Food Businesses and Sustainable Food Security (SALSA), Alentejo regional farmers created the “Km0 Evora” label that certifies local provenance within 50km. Efficient value chains are a traditional strength of cooperatives, but pressures of globalism have disrupted local economies, making community initiatives and branding more relevant. Mimicking Km0’s success, several European agricultural cooperatives have introduced similar measures.
  • Adega de Borba: Maximization of member profit and temporary gain often leave cooperatives under-invested. Despite initial struggles, Adega Cooperativa de Borba (ACB), which began in 1955, successfully transitioned to the global marketplace and produces 15 million bottles annually. A €12 million-member investment to build a state-of-the-art production facility has allowed 300 small farmers to compete internationally by diversifying product offerings.

Restoring Profitability to Agriculture

As rural communities face increasing pressure from foreign influence, these already-disenfranchised populations will struggle to have others hear them amid the cacophony of global interests. Portuguese winemakers, that the rapidly-changing economy overwhelmed, suffered immense emigration as farming no longer provided sufficient income. Restoring profitability to agriculture is a powerful mechanism by which endemic poverty can disappear. Organizations at numerous levels will be instrumental in this effort, but progress must begin with collaboration in agrarian rural communities.

– Kit Krajeski
Photo: Flickr

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Landslides in Bangladesh – Recurring Social Issues

Tropical Cyclones in Bangladesh Monsoon season in the Bay of Bengal usually lasts from June to September and can be characterized by sudden, violent downpours of torrential rain. These heavy rains are integral to the climate and culture of this part of the world, but can also pose a threat to lives and infrastructure when storms become severe. In the Chittagong Hill Tracts region of Bangladesh, monsoon rains and cyclones can trigger landslides on the steep, uneven ground. These landslides have become increasingly deadly in recent years. Substantial landslides in the second half of the 20th century typically recorded few to no deaths. This changed by the turn of the century: in the 2007 and 2017 landslides, 136 and 170 people died, respectively. Landslides in Bangladesh are becoming deadlier and the government must take measures to prevent further loss of life.

Rapid and Unplanned Urbanization

With an urbanization rate of 3.17 percent, Bangladesh has experienced a large amount of internal migration. People who seek better job and educational opportunities are moving to urban areas. Urbanization itself is not a bad thing, but problems can arise when local governments do not utilize appropriate city planning measures. For example, 21.3 percent of Bangladesh’s urban population lived below the poverty line in 2010, and 62 percent of the urban population lived in slums in 2009. These statistics reflect an inability to accommodate a quick, large influx of people.

In the Chittagong Hill Tracts region, unplanned urbanization can be deadly. People seeking land in the area often end up settling on the hills just outside of urban centers. Building is supposed to be prohibited on these landslide-prone areas, but zoning is typically not enforced and people ignore the warnings. The Department of Energy found that there are about 2,000 families in the area currently at high risk.

Indigenous Displacement and Land Conflict

Land in the Chittagong Hill Tracts has a contentious history. Groups of indigenous people in Bangladesh have long fought for rights and protections that the federal government is reluctant to give. In the 1970s, an indigenous guerilla group launched an insurgency on settlers who were encroaching on their territory. The 1980s saw no more protection for indigenous lands, but a large influx of Bengali settlers moved to the area as part of a government-supported migration effort. Violence has since persisted between landless Bengali settlers building in the hills and indigenous communities who once called the area home.

Indigenous communities in Bangladesh suffer disproportionately from land conflicts and lack of governmental support. It is estimated that about 90,000 indigenous people were displaced as a result of the conflict, with many families setting up temporary structures on the steep and unstable slopes. Amnesty International has called on the Bangladeshi government to be more proactive in recognizing indigenous rights, but concrete progress on the issue remains evasive.

Increased Cost of Building Materials

Because many indigenous communities have lived in the Chittagong Hill Tracks for generations, they have the knowledge necessary to allow them to build homes that are less vulnerable to landslides in Bangladesh. Ideally, homes on these slopes would be stilted so that mud and water can pass underneath without causing damage. The increased cost of lightweight building material like bamboo, however, has recently made this practice much more expensive. When families cannot afford materials to stilt their homes, they are forced to build on the ground and in the path of landslides. These ground-level homes can also make the hills more unstable, as digging increases the amount of loose earth on the slopes.

Increased Storm and Monsoon Intensity

Monsoons have been changing in recent years. Increasingly, rain comes in powerful torrential downpours that may only last a few days but can dump as much water as would previously be recorded over the span of a month. This pattern is likely to increase the frequency of dangerous landslides as water has less time to seep into groundwater deposits.

Cyclones, known in North America as hurricanes, are single storm systems that form over the ocean and carry rain and wind to land along the coast. Only about 5 percent of the world’s tropical cyclones form over the Bay of Bengal. However, out of 10 cyclones that recorded very high loss of life, five were in Bangladesh. This statistic reflects the vulnerability of people living on the exposed hill tracts.

Measures Being Taken

Local governments have recently been more proactive about implementing storm warning and evacuation systems in vulnerable areas. Only 11 people died from landslides last year, which is significantly less than the 170 landslide fatalities in 2017. However, in the Chittagong Hill Tracts district, there are no official storm shelters. This means that during periods of evacuation, government-run buildings such as radio and TV stations must accommodate people fleeing their homes. These buildings sheltered about 4,000 people last year. Official storm shelters would be better equipped to handle the increasing number of people fleeing storm damage.

The Asian Disaster Preparedness Center (ADPC) is recommending that until more concrete preventative measures can be taken, schools and faith-based organizations should work to prepare and educate communities about the dangers of landslides in Bangladesh. If people living on the slopes of the Chittagong Hill Tracts cannot avoid landslides, they may have to learn how to adapt to them.

– Morgan Johnson
Photo: Flickr

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Top 5 Benefits of the Internet in Developing Countries

Top 5 Benefits of the Internet in Developing Countries
As of 2019, 56.1 percent of the global population, or about 2.3 billion people, has access to the internet. In recent years the fastest growing market segment has been developing countries, and with the expansion of its popularity, overwhelmingly positive changes have occurred. These top five benefits of the internet in developing countries show how internet access makes a huge dent in global poverty.

Top 5 Benefits of the Internet in Developing Countries

  1. Lifting Individuals out of Poverty: Through internet access, individuals in developing countries are able to gain access to more of the modern economy. With internet connectivity, those living in remote areas can now easily take out microloans, participate in e-banking and more. Today, there are more than 3,098 microfinance organizations that have reached out to more than 211 million clients in developing countries globally. Via such economic tools, those living in extreme poverty are able to improve the quality of their lives. For example, in a case study in India, businesses that received microloans were twice as profitable as those that didn’t. This is because with credit, those without a lot of initial capital now have a discretionary income and no longer have to choose between investing in a business or buying everyday necessities such as medications.
  2. Growing Access to Education: With internet connectivity and new technologies, third-world countries become more able to bridge the education gap between urban and rural populations. In sparsely populated areas, mobile electronic devices such as tablets are being utilized to deliver invaluable classroom instruction to children that otherwise wouldn’t likely receive it. For example, a giant literacy campaign with a budget of $173.5 million is currently being initiated by the Kenyan education ministry. The project utilizes BRCKs: durable, personalized tablets that contain educational content aiming to deliver learning opportunities to those living in even the most remote locations.
  3. Increasing the Ease of Communication: The internet is arguably the most inexpensive and effective connectivity tool. By accessing it, individuals in developing countries can participate in e-conversations through applications such as WhatsApp and WeChat. In a survey conducted in 2017, it was found that about 85 percent of internet users in sub-Saharan Africa used it to stay in touch with family and friends, and around 60 percent utilized it to access social media sites.
  4. Improving Crop Efficiency: Through IoT (internet of things) systems, farmers in developing countries can easily access information about important variables such as humidity, temperature and terrain topography through a variety of sensors. Precision agriculture in third-world countries has also led to the development of unique insurance systems. For example, with Kilimo Salama, farmers in Eastern Africa can now purchase insurance that automatically makes mobile payments to them if their local weather stations record extreme weather occurrences such as drought or flooding. Today, over 150,000 farmers are enrolled in this program.
  5. Greater Global Participation: As of 2017, 53 percent of adult internet users used the internet to stay informed on the news. Because many developing countries also harbor internal conflicts, being up to date on the status quo of things becomes especially crucial for their citizens. In addition, individuals in developing countries can become a part of global conversations via online communication platforms. Social media campaigns have proven themselves to be especially effective at raising awareness for many issues and increasing participation in protests. For instance, many Iranians used Twitter to protest the injustice of the disputed Iranian election of 2009. Through this social media app, the movement was able to go viral with tags such as #IranElection.

Through the increased availability of internet access and clever innovations in third-world countries, the lives of many people have been greatly impacted in overwhelmingly positive ways. With the rise of the popularity of internet kiosks and cafes in rural areas, the hope of universal internet access is no longer far-fetched, and one can only imagine the total impact that internet in developing countries will have on alleviating global poverty.

– Linda Yan
Photo: Flickr

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How Global Entrepreneurship Supports World Peace

global entrepreneurship
As historically less developed countries begin industrializing, their citizens are taking the opportunity to start exciting new businesses, and global investors are taking notice. U.S. investors are looking into African, Asian and South American start-up companies to invest in. While the motivation behind this investment may be profit-oriented, it also creates an interconnected world that is economically dependant on each other.

Why Countries are Investing in Global Start-Ups

  1. Support from Global Governments: One big reason why global entrepreneurship has taken off is governments worldwide are supporting it. In 2017, the U.S. and India jointly hosted the Global Entrepreneurship Summit, which brings together entrepreneurs from around the world to connect with prospective investors. On top of that, governments worldwide are putting resources into building up their entrepreneurial communities. The six-month program, Start-Up Chile, offers its students $35,000 and a one-year visa to move to Chile and grow their business.  
  2. Great Locations: As the entrepreneurial spirit spreads in a country, like-minded people flock at epicenters of design. For example, Santiago, Chile has been dubbed “Chillecon Valley” due to its high number of tech start-ups. Similarly, Buenos Aires has an electric entrepreneurial community that creates competition and cooperation between different companies. This spirit (and the great weather) attracts entrepreneurs to relocate from around the world.
  3. Highly Skilled at Low Costs: As an investment opportunity, global entrepreneurs offer considerable value for their cost. Due to the relatively low cost of living in less developed countries, entrepreneurial cities are an attractive place for skilled people to move to. Some experts estimate that highly skilled tech workers in Argentina can be hired for 25-35 percent of the cost of their U.S. counterparts.

How Investing Supports Peace Worldwide

  1. An Interconnected World: By creating business ties between countries, peace becomes an economic necessity. Some economists believe the best way to achieve global peace is to create a world that is so economically dependent on one another that conflict would be mutually destructive. While total economic dependence may not come anytime soon, on a smaller scale the theory works the same way.
  2. Global Entrepreneurship Helps People Globally: Global Entrepreneurship greatly improves the quality of life for participants. Not only do successful small business owners help themselves, but they also contribute to the local economy by employing local workers. Therefore, by helping people start businesses worldwide, developed countries can help eliminate global poverty one start-up at a time.
  3. Increased Stability: Evidence suggests that one of the main causes of political unrest is not religion or culture, but rather the economy. As people are unable to find well-paying jobs, they search for alternative vehicles to express their unrest. In this way, global entrepreneurship is an asset to national security. Providing people with resources and support to help themselves is cost-effective and works to eliminate causes of civil unrest rather than covering up symptoms.

The U.S. government is supporting global entrepreneurship by co-hosting the Global Entrepreneurship Summit with India. Meanwhile, people are investing in start-ups worldwide to get a jump-start on the next big company. Through both of these actions, global entrepreneurship is getting the push it needs to improve economic conditions and create world peace.  

– Jonathon Ayers
Photo: Flickr

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AT&T Philanthropy Circles the Globe

AT&T philanthropy
In 1876, AT&T founder Alexander Graham Bell developed one of the most significant devices ever invented, the telephone. In 1947, AT&T created the concept of cellular telephony, and in 1948 they built the first network service that allowed television broadcasters to connect between cities. In 1971, AT&T produced Unix, the underlying language of the internet.

In addition to its technical advancements, for AT&T philanthropy has become one of its core missions, beginning in the early days with the goal to provide telephone access to every household in the United States. Eventually, that core focus evolved as AT&T transitioned from a telephone company to a wireless technology company firmly committed to the potential for technological advances that connected the world.

In its drive for global interconnectivity, AT&T has donated $139.3 million to philanthropic efforts around the globe. Their programs are divided into several focus areas, including art and culture, civic and community, health and welfare, as well as education.

In Malaysia, AT&T partnered with the Malaysian Communications and Multimedia Commission to host an annual developers’ day in Kuala Lumpur. The event opened opportunities for young entrepreneurs in Asia to compete by producing mobile applications.

AT&T philanthropy efforts provided the networking infrastructure and educational resources that made the event a success. The winners of the competition received $10,000. Additionally, AT&T provided five scholarships to Udacity for an online degree in the technology field.

In Mexico, AT&T funds a project called “Laboratoria”. This organization discovers talented women and helps them learn the skills they need to be successful in the business world, including teaching them web development and programming. The curriculum is comprehensive and connects graduates with companies that will likely hire them, including AT&T.

Other charities that AT&T is involved with include TECHO, a youth-led nonprofit focused on poverty-stricken areas in Latin America and the Carribean. AT&T’s funding of TECHO supports the building of pre-manufactured modular homes, made in two days with the participation of youth volunteers and families in the community. The collaborative aspects of TECHO’s approach help to further build trust amongst the volunteers and the communities they serve.

In 2016, AT&T philanthropy efforts granted $1.35 million to Télécoms Sans Frontières. Headquartered in Europe with sister stations in Bangkok and Nicaragua, they provide emergency telco service and support to first responders, victims and volunteers who are affected by natural disasters.

AT&T also supports Junior Achievement worldwide in Europe and Latin America, which awards students access to work experience program,s granting scholars the ability to join entrepreneurial programs that empower them to learn how to create their enterprise.

Uniquely, AT&T’s philanthropy efforts do not merely fund free giveaways. They have curated their philanthropy to focus on significant long-term solutions offering education and job readiness courses.

AT&T’s mission statement says, “Today, our mission is to connect people with their world, everywhere they live and work, and do it better than anyone else.” The firm belief of connecting everyone everywhere has enabled AT&T to support causes that cover every continent on the globe.

– Hector Cruz

Photo: Flickr

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The Global Economy Is on the Rise

global economy is on the risePeople around the globe experienced the mania of the Dow Jones’ historic low in February 2018. Some traders even questioned if this was a sign of a global stock market crash. But as the U.S. stock market recovers from its volatile hijinks, global trade as a whole is rising, and rapidly. This rapid rise has many economists optimistic that the global economy is on the rise as well.

The global economy is driven by trade. As international trade rises, so do technological developments as nations tear down trade barriers. According to a report by the CPB Netherlands Bureau for Economics Policy Analysis, the volume of imports and exports grew by 4.5 percent in 2017. To gain perspective, this is a significant spike from a stagnant 1.5 percent rate of growth the previous year, which was the lowest since the global financial crisis in 2007-2008.

Globalization a Reason Why the Global Economy Is on the Rise

The world is changing. Globalization moves the market, just as we move through our interconnected culture of technology, digital communications and transportation. As markets evolve, global poverty is decreasing, while the global economy is on the rise.

Old business practices are being phased out, technology is replacing hard labor and workers are rising to higher levels of efficiency. Automation is shifting the way goods and services are distributed, easing mass production.

Nations have outsourced businesses to developing nations, partly to reduce wage costs. Yet, business process outsourcing provides an oasis of income for people in developing countries such as India, the Philippines and Malaysia. In many places, this opportunity to earn a living would not be possible without outsourcing.

As technology advances, the market shifts and standards of living rise across the globe. Developing countries who have broken trade barriers have developed competitive advantages in the production of certain products. Ukraine, for example, is known as the breadbasket for its richness in wheat and farmland. Venezuela is known for its vast oil supply and China’s factories are known for producing more than half of the world’s clothing.

Tariff Reduction Has a History of Success in Developing Countries

History reveals that nations who open their economies to trade with the global economy experience faster growth and poverty reduction. During the past 30 years, global poverty has been cut in half. Studies show that developing countries that lowered tariffs in the 1980s experienced quicker economic growth in the 1990s compared to those that did not. Tariffs, or taxes on imports and exports between sovereign states, are often viewed as barriers affecting the global economy.

Developing nations have tariffs that are three to four times higher than industrial countries, and they are even higher on agriculture. Average tariff protection in agriculture is about nine times higher than in manufacturing. This can undermine a developing country’s agricultural sector and exports by depressing world prices.

The outlook for the global economy depends on these countries tearing down trade barriers. Yet, political decisions in developed countries are affected by trade barriers as well. In Venezuela’s case, the U.S. has imposed investor-related sanctions on Venezuelan oil to pressure its government to address its humanitarian crisis of inflation and starvation. According to Reuters, U.S. officials are not ruling out a complete ban on Venezuelan oil in order to send a strong message to its dictator, Nicolás Maduro.

Trade Wars Are Common and May Not Affect Global Trend

China’s trade practices have also affected U.S. trade on a political level. Elon Musk, the CEO of Tesla, recently called on U.S. President Trump for equal and fair rules for cars, citing China’s pressure on foreign businesses to partner with Chinese carmakers before manufacturing in China. Musk noted China’s 25 percent import duty on cars compared to America’s 2.5 percent duty. President Trump proposed a sweeping tariff on steel and aluminum on March 8, 2018, which characterizes the trade wars.

Skeptics believe this political decision could take the global economy down the rabbit hole. Others are bracing for a global crash for different reasons. “I still believe that we’ll face a financial crisis within the next two years if we don’t solve the debt problems,” said Bjorn Ritschewald, a civil engineer with the government Road and Traffic office in Bremen, Germany, a city popular for its maritime trade. “Almost every country spends more than its income. Actually, I don’t know any country that spends less than what it takes in.”

“Waves in trade flow are common, but it depends on the goods,” Ritschewald told The Borgen Project. “You can’t just look at the financial numbers. You also have to look at the real amount of goods and which kind of goods are being sold.” World markets experienced the rippling effects of the Dow Jones’ plunge. The plunge is characterized as market correction, a phenomenon where unusual market success sparks panicked selling, driving market drops across the globe.

On the other hand, many economists believe that the global economy is on the rise. Their confidence stems from positive trade initiatives such as the Trans-Pacific Partnership, a free trade agreement set to be signed by 11 countries in March. The trade wars and other trade barriers are pitfalls that affect the global economy. However, with trade growth booming, there is much optimism in the air about a healthy global economy in the future.

– Alex Galante

Photo: Google

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The Effects of Overcrowding and the Behavioral Sink Theory


A high population density may, in some instances, lead to inconveniences. Some of these inconveniences, like traffic and crowded sidewalks, are frustrating while others, such as a lack of resources, may be dangerous. Ethologist John B. Calhoun studied the effects of increased population density on the behavior of mice and concluded his studies with the theory of the behavioral sink. The theory is still largely contested and influences studies of human behavior, and this article will seek to answer the questions: what is a behavioral sink and how valid is the theory?

The Experiment

At the start of the study, Calhoun crafted a utopia where the mice could thrive in a secluded space and reproduce without a fear of predators or a lack of resources.

The mice utopia quickly spiraled into chaos once overcrowding commenced. In the worst instances of overpopulation, pregnant female mice experienced a higher number of miscarriages and mothers were losing track of their children. Other mice resorted to fighting when in direct contact with other mice for prolonged periods.

The strange actions of the group of mice are assumedly correlated with the heightened population; this relationship is then referred to as “behavioral sinks.” Calhoun reported the results of his mice experiment in the 1962 issue of Scientific American, and the concept of the behavioral sink soon garnered the attention of the public.

The Controversies

The work eventually proved controversial for a few reasons: first, the behavior of mice cannot be used independently to understand the behavior of humans; second, when scientists tried to study the behavioral sink theory in humans, they had to decide which human behaviors they would consider similar to the unusual behavior of the mice. For instance, some mice exhibited different sexual behaviors ranging from asexuality to bisexuality; and third, in order to detect this behavior in human beings, some researchers used STDs and illegitimacy as equivalents, an obviously offensive comparison.

The other controversy involved further experiments that proved the theory of behavioral sink did not hold up in human populations. Psychologist Jonathan Freedman conducted a similar, but significantly more humane, experiment with students to observe their behavior in situations of overcrowding in which he found no negative effects of overcrowding, but instead of over-socialization.

The Results

“Rats may suffer from crowding; human beings can cope,” stated Freedman in regards to Calhoun’s findings.

The theory played on the anxieties of those who disliked crowded areas, which were often people of low-income. Many felt that there was not only a higher rate of general crime  in the low-income areas, but that there was also a higher chance that a crime would be committed against them. These classist conclusions led some to ask: what are the positive contributions of the behavioral sink theory?

Calhoun began to explore the importance of “spiritual space” as well as physical space, a concept that aligned pretty directly with Freedman’s theory of coping strategies. Calhoun cited creativity and art as giving people the ability to create distance between others in order to cope with overcrowding. This concept of stress related to over-socialization was a part of Calhoun’s experiments that positively influenced thought and research well after the 1970s.

– Danielle Poindexter

Photo: Flickr

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The AGOA and MCA Modernization Act Passes in the House

AGOA and MCA Modernization ActOn Jan. 17, 2018, the House of Representatives passed H.R. 3445, the AGOA and MCA Modernization Act. The legislation adds on to the original African Growth and Opportunity Act, or AGOA, which was passed into law on May 18, 2000, by the 106th Congress.

As an extension of AGOA, the AGOA and MCA Modernization Act encourages plans to promote trade and cooperation while also providing aid to countries that are AGOA eligible. The region of focus of the legislation is sub-Saharan Africa, with the goal being to build private sector growth. Under the bill, the President will be directed to create a website with information about AGOA along with encouraging embassies in chosen countries to promote export opportunities to the United States.

In addition, the​ ​bill​ ​would​ ​give​ ​the​ ​Millennial Challenge Corporation (MCC)​ ​the​ ​authority​ ​to​ ​develop​ ​a​ ​second​ ​concurrent​ ​compact​ ​with countries,​ ​provided​ ​the​ ​compact​ ​focuses​ ​on​ ​regional​ ​economic​ ​development.​ The​ ​ability​ ​to​ ​enter​ ​into​ ​a​ ​second​ ​compact​ ​will​ ​be​ ​limited​ ​to​ ​countries​ ​that​ ​demonstrate​ ​progress toward​ ​meeting​ ​the​ ​objectives​ ​of​ ​the​ ​first​ ​compact​ ​and​ ​capacity​ ​to​ ​handle​ ​an​ ​additional​ ​compact.

The MCC was created in 2004 by the Bush administration, with the aim to reduce poverty through economic growth. The MCC has committed more than $10 billion in 58 projects in 25 countries. Around 70 percent of this investment has gone into infrastructure projects like highways and ports and an increasing percentage is being invested in energy.

On the House floor prior to the vote, House Foreign Affairs Committee Chairman Rep. Ed Royce (R-CA-39) said that the AGOA and MCA Modernization Act “seeks to facilitate trade and private sector-led growth in poor but relatively well-governed countries, particularly in Africa, so they can grow their own way out of poverty.”

“Through AGOA, goods produced in eligible African countries enter the U.S. on a duty-free basis. To be eligible, countries must be committed to the rule of law, eliminating barriers to U.S. trade and investment, combating corruption and supporting counterterrorism activities. So AGOA advances U.S. interests on many levels.”

Trade being a driver of economic development and increased civilian participation in politics is one of the main arguments for passing the AGOA and MCA Modernization Act. Economists and experts agree that the legislation does not just benefit sub-Saharan Africa, but also the United States, as it helps create jobs and benefits consumers and companies through free-market principles.

Rep. Karen Bass (D-CA-37) was enthusiastic about the passage of the AGOA and MCA Modernization Act by a unanimous vote. Bass is a ranking member of the House Africa Subcommittee. She is an avid supporter of the legislation and said the policy would foster economic development, as well as strengthen the United States as an international leader and boost the domestic job market and economy.

The bill was introduced to the House by Rep. Royce. At the time the bill was initially introduced, Rep. Royce along with fellow representatives Bass, Eliot Engel (D-NY) and Chris Smith (R-NJ), stated that steering developing countries toward trade and away from aid helps African countries and women. Africa’s consumer spending nearing $1 trillion was what prompted the four to push for the passing of the AGOA and MCA Modernization Act.

The AGOA and MCA Modernization Act still needs to be approved by the Senate. The bill has been introduced by Sens. Ben Cardin (D-MD), Johnny Isakson (R-GA) and Chris Coons (D-DE) as S.832. Sen. Coons stated that it is vital that Congress does all it can do to promote economic growth in developing countries and expand American business access to foreign markets. He is excited that the act will encourage trade with sub-Saharan Africa.

The recent passing of the AGOA and MCA Modernization Act in the House may give the legislation the momentum it needs to soon be accepted in the Senate. Visit The Borgen Project Action Center to contact your representative about this critical legislation.

– Blake Chambers

Photo: Wikimedia Commons

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Imported Food Affecting Malnutrition in French Polynesia

Imported Food Results in Malnutrition in French PolynesiaFrench Polynesia consists of five archipelagoes. It is located in the South Pacific Ocean about halfway between South America and Australia and has an estimated population of 287,881 based on 2017 data. The scenic islands are a prime getaway destination resulting in the tourism sector accounting for 85% of the overall economy in 2012. Despite the success in tourism, French Polynesia is facing a domestic issue related to the importing of food. Consequently, many are living with noncommunicable diseases and malnutrition in French Polynesia.

Pearl fishing remains the second largest industry among the islands. However, as a result of tourism and globalization, the islands have shifted from an agricultural economy to one that depends on food imports.The health issues are not as a result of a lack of food or hunger in French Polynesia but rather the type of food being imported and consumed.

Before French Polynesia became a tourist destination, the food consumed came from local farms and fisheries and was shared among the community. Since then, globalization has had a negative effect on French Polynesian imports and diets.

Once people started vacationing on the island, they wanted foods that were closer to their westernized diets and not naturally found on the island. This paved the way for food imports and grocery stores.

Data collected by the Food Secure Pacific organization shows that chicken is the largest food imported to the islands and a large contributor to the “rapid change in the daily diets” of the Polynesian Islanders over the years. The amount of milk and meat, including chicken, has increased, though the amount of most fruits and vegetables “has remained relatively constant” on the islands.

Overall the addition of processed, imported foods and unhealthy, unbalanced eating habits that have resulted in major dietary issues and malnutrition in French Polynesia.

In 2010 the World Health Organization and United Nations partnered up with the Pacific Food Summit “to make a better future for the Pacific Islanders as a whole”. The intent was to draw attention to the different types of diseases, including malnourishment to obesity, that have been affecting the Pacific islands.

At the Summit, the organizations stated their hope to come to a “resolution on the prevention and control of non-communicable diseases,” malnutrition and food-borne illness in French Polynesia. Their mission includes achieving food security in the Pacific, ensuring all people have access to safe, affordable and nutritious food that enables active and healthy lifestyles.

The World Health Organization’s strategic plan to help malnutrition in French Polynesia also aims to secure a positive future for the children of the islands.

– Jennifer Lightle

Photo: Flickr