Development Projects in Honduras
Poverty remains an issue in Honduras, but it is making progress in rural infrastructure development, education improvement and agriculture income growth. As reported in 2017, Honduras has a poverty rate of about 52 percent, partly due to slow economic development, extreme violence and political corruption. Those in poverty rely heavily on outside aid from the World Bank, the U.S. and various non-governmental organizations (NGOs). Thanks to the World Bank and its partners, major development projects in Honduras were successful, such as the Social Protection Project and the Rural Infrastructure Project. Progress is currently ongoing to reduce poverty, develop the Honduran economy and improve life for those in poor rural areas.

Social Protection Project

The Social Protection Project cost $77 million, began in 2010 and ended in 2018. Although poverty reduced from 65 percent in 2005 to 52 percent in 2017, poverty remains an issue and is one of the main reasons for Hondurans fleeing the country. One major effect of Honduras’ poverty is parents taking their children out of school and having them work to help the household earn a sufficient income. Since income is low, poor Hondurans often cannot afford quality health care.

Malnutrition in children under 5 was 43 percent for those in poverty and school enrollment for ages 12 to 14 was 65 percent. To combat this, the World Bank and Honduras worked together to improve education and health care. At the end of the project, school attendance increased by 5 percent for 6 to 17-year-olds and school enrollment increased by 5 percent. Child labor reduced by 2.6 percent and about 50 percent of the recipients from 0 to 23 months of age received vaccinations. More than 300,000 families benefited from the Social Protection Project. Conditional cash transfers helped reduce poverty for those who participated in the project, which granted monthly income to the extreme poor.

Rural Infrastructure Project

The Rural Infrastructure Project began in 2005 and ended in 2016. Most roads in Honduras are unpaved and about 16 percent of people in rural areas lack a clean drinking water source, which increases the risk of contracting diseases. Also, about 22 percent of sanitation facilities remain unimproved and 30 percent of those in rural areas lack electricity. The Government of Honduras worked with the World Bank to improve its lagging infrastructure because of this. The project benefited more than 300,000 households.

Among many other infrastructure improvements, the project resulted in installing 4,893 latrines and constructing 113 water and sanitation projects. The project improved more than 413 miles of roadways and financed more than 8,550 rural electrification projects, with most of the electricity powered from solar photovoltaic energy. The project also improved more than 500 miles of power lines, which made it easier to develop remote areas of Honduras such as the slums in the western part of the country.

U.S. Involvement

The U.S. is one of the main donors to Honduras. Through the Millennium Challenge Corporation (MCC), the U.S. grants aid to those in need of foreign assistance. The U.S. Congress created the MCC in 2004 with strong bipartisan support. The MCC spent more than $200 million in infrastructure and agriculture improvements through four major projects in Honduras from 2005 to 2010. Some of the results include more than 350 miles of rural roads improved and paved. The biggest result was increasing monthly agriculture income by $3.50. The increase in income might seem small, but not for those in poverty, especially Hondurans who live in extreme poverty, off of less than $2 a day. For reference, the middle-income country poverty rate is around $5.50.

Poverty is slow to decline in Honduras, yet successful development projects in Honduras show improvement in other areas. Infrastructure is improving through the help of the U.S. and the World Bank. Poverty declined gradually from about 65 percent in 2005 to 52 percent in 2017. Development projects in Honduras in rural areas, such as through electrification, education and health care improvements and road construction shows promise for improving livelihoods for Hondurans in poverty.

– Lucas Schmidt
Photo: Flickr

Investment in RwandaThe commonly held belief on Chinese investment in African countries is that China is only interested in exploiting the continent for its mineral resources and establishing a sycophantic relationship with some of the world’s most vulnerable developing nations. However, the investment in Rwanda makes little sense if short term profit and influence are the country’s only motives. Rwanda lacks the natural resources that its neighbors have. Furthermore, its population will only yield a small number of consumers of Chinese goods in the future. Motivations aside, China’s investment is helping to develop the country in ways that will positively impact the lives of the country’s poor.

Rwanda’s Rapidly Improving Infrastructure

The investment in Rwanda has had no bigger impact than in the area of infrastructure with projects that include the construction of hotels, schools, hospitals and multi-thousand capacity stadiums in the underdeveloped eastern province. China also constructed 80 percent of the country’s roads, beginning with a loan of 250 million yuan in 2009. This equals about $36,040,200 million.

In the short term, the Chinese have reduced the cost of construction and have created jobs for local people according to Qinghai Liu, A Chinese expert in the research on China’s investment in Africa. Evidence exists to support her claim as well. One example is the construction of the Administrative Office Complex located in the capital city of Kigali. The Chinese builders employ some 260 Rwandan employees and provide them training in construction skills.

China is also funding an agriculture technology center to help improve Rwanda’s farming. Construction has also extended into real estate. Chinese enterprises are building 4,500 villas and apartments in Vision City for an emerging middle class. Recently, the Chinese embassy donated building materials for housing for the most vulnerable families.

The Tradeoff

The Rwandan government has found a willing investment partner in China whose aid is not preconditioned on democratization, liberalization and privatization. Rwanda has even modeled its development on China, lacking an emphasis on personal and social freedoms. Should Rwanda be unable to pay its debts, it is unclear what China might do to make good on its investment. Sri Lanka is the only country to have defaulted on its loans with China in the past. China seized the economically vital port of Hambantota in a response that remains controversial to this day.

Though there are obvious political and social concerns that come with the investment in Rwanda, the poor are benefiting. There is evidence that China is playing a concrete role in helping to lift Rwandans out of poverty. In big and small ways, China is helping Rwanda in its development, and not just the rich are benefiting.

Caleb Carr
Photo: Google

10 Facts about Renewable Energy in Costa Rica
Located in the heart of Central America, Costa Rica is nestled between the Pacific Ocean and the Caribbean. Costa Rica is famous for its thriving wildlife, but what many may not realize is that Costa Rica prides itself as one of the greenest countries in the world. Here are 10 facts about renewable energy in Costa Rica.

10 Facts about Renewable Energy in Costa Rica

  1. Most of Costa Rica’s energy comes from renewable sources. More than 99 percent of the energy in Costa Rica was generated from renewable sources in 2019. According to the country’s National Center for Energy Control, Costa Rica has been running on more than 98 percent renewable energy since 2014. The majority of this energy, 67.5 percent, comes from hydropower. Additionally, wind power generates 17 percent, geothermal sources make up 13.5 percent and biomass and solar panels comprise 0.84 percent. The remaining 1.16 percent is from backup plants.
  2. Costa Rica has universal access to electricity. Costa Rica has an estimated population of 5.05 million people. In 2018, at least 79 percent of the population lived in urban areas, and 20 percent lived in rural areas. Both rural and urban populations benefit from renewable energy in Costa Rica, as 100 percent of the households have access to electricity generated from renewable sources.
  3. Costa Rica lasted 300 consecutive days on renewable energy alone. Costa Rica set the record in 2017 for most consecutive days with renewable energy. The previous record for this feat was in 2015 when Costa Rica lasted 299 consecutive days on pure, clean energy.
  4. Deforestation has successfully been reversed in Costa Rica. Deforestation is detrimental to both civilization and wildlife. It can make agricultural practices and maintaining food supply difficult as it can lead to climate change, desertification, soil erosion and increased greenhouse gases. Beginning in the 1980s, the government of Costa Rica implemented policies to protect its natural forests. By 2016, the amount of land covered by forest has doubled to more than 50 percent of the country’s total landmass.
  5. Payments for Environmental Services (PES) program. Costa Rica created the PES program in the 1990s as part of protective policies put in place to combat deforestation. The success of renewable energy in Costa Rica is partially due to the pioneering of this program. Through it, landowners receive direct payments for ecological services when they adopt techniques that do not negatively impact the environment and maintain quality of life. The ecological services that can be provided include clean water, irrigation, energy production, biodiversity and scenic beauty. This allows for landowners, especially farmers, to earn an extra income even during unprofitable seasons.
  6. Costa Rica is producing so much energy that it can be sold. The Costa Rican Electricity Institute (ICE) began selling its energy surplus to Central America’s Regional Electricity Market in 2015. The electricity helps power Guatemala, Nicaragua, Panama, Honduras and El Salvador. By 2019, Costa Rica has earned more than $180 million in sales of surplus energy.
  7. Costa Rica has committed to eliminating fossil fuels. In 2018, Costa Rica’s new president, Carlos Alvarado, announced at his inauguration that he plans to ban all fossil fuels and become the world’s first decarbonized country. The plan will begin in 2021 and features ideas that tackle problems in the transportation sector, such as implementing fully electric trains by 2050.
  8. There’s a roadblock in Costa Rica’s green vision. The transportation sector is one of Costa Rica’s weakest links. Much of the infrastructure, even in cities, is in poor condition. This leads to more people relying on cars than on public transportation. Costa Rica’s State of the Region reports that there are 287 cars per 1,000 people. Fewer than 2 percent of these cars are hybrids or electric cars. This generates a demand for fossil fuels (oil) with gas spending on the rise.
  9. Additionally, 82 percent of the population has access to clean drinking water. Nearly all households in Costa Rica have access to an improved water source. An improved water source includes piped water in a home or from another source, such as a public tap, wells or rainwater collection. However, this doesn’t mean that all households have water safe for drinking. Even though most of Costa Rica’s renewable energy comes from hydropower, the water supply is not very clean. About 18 percent of Costa Rica’s population lacks access to drinking water due to a shortage of infrastructure and government support. Unfortunately, minority groups make up this 18 percent, including people who are indigenous, impoverished, Afro-descendants and migrant workers.
  10. People in Costa Rica live healthier, longer lives. In a 2015 study by Bloomberg, Costa Rica was ranked as the healthiest country in Latin America and 24th in the world. Additionally, Costa Rica has one of the highest average life expectancy at 80 years. In fact, according to a study in 2016, Costa Rica’s poor live longer than the poor in the United States. Further, the lack of access to healthcare in the U.S. could be part of the reason why. This could also be due to psychosocial factors. Costa Rica’s unofficial slogan is Pura Vida, meaning “pure life.” Pura Vida is about slowing down and relaxing to enjoy what life has to offer.

Costa Rica is by no means perfect. As the government devotes much of its efforts to environmental sustainability, it takes away from maintaining infrastructure throughout the country. However, it is clear that Costa Rica is doing something right. The majority of the population has access to clean water and electricity, which is due to the enormous production of renewable energy. “Pura Vida” may just be a saying in Costa Rica, but it certainly connects to the country’s commitment to relying on what nature has to offer.

Emily Young 
Photo: Pixabay

Industrialization in Kenya
With a current growth rate hovering between 5 and 6 percent, Kenya is one of the fastest-growing economies in Sub-Saharan Africa. Industrialization in Kenya, as part of Vision 2030, is a priority that could help transform the agriculture-dependent country into a developed economy. According to Kenya’s Ministry of Industrialization and Enterprise Development, its three main goals include increasing foreign investment, improving the business environment and reducing corruption. Kenya has a massive goal of reaching a GDP of $211 billion. That would be approximately the same GDP as Romania in 2017. Kenya’s GDP increased from $18 billion in 2005 to $78 billion in 2017. The 2017 figure was $17 billion more than expected. China is one foreign investor that sees potential in developing Kenya’s economy.

Why Develop Kenya?

One side effect of developing an economy is a reduced poverty rate. Approximately 60 percent of Kenyans work in the agriculture industry, which is typical for developing economies. A developed economy such as the U.S. involves a mostly service dependent economy.

A drought-affected part of Kenya in 2017 slowed GDP growth, increased inflation to 8 percent and harmed the economy. President Uhuru Kenyatta acknowledged the need for industrialization in Kenya and the country’s dependence on agriculture. Vision 2030 includes increasing manufacturing from 11 percent of Kenya’s GDP to 20 percent of its GDP and focuses on developing its oil, minerals, tourism, infrastructure and geothermal sectors.

Businesses and countries investing in Kenya could add jobs for Kenyans, help diversify into a new market and improve trade between the two entities. Foreign direct investment was $1.6 billion in 2018. The United Kingdom, China, Belgium, the Netherlands and South Africa are the main investors. Banking, tourism, mining, infrastructure and information and communications technology are some of the investment sectors for these countries.

First Steps to Industrialization in Kenya

China is a major investor in Kenyan infrastructure. The Mombasa-Nairobi Standard Gauge Railway (SGR) costs $3.6 billion and connects the capital with the largest city in Kenya. The China Road and Bridge Corporation hired more than 25,000 Kenyans to work on the railway that opened in 2017. It extended the railway to Naivasha in October 2019. More than one million people rode the SGR in 2018.

China Road and Bridge Corporation also invested in the Nairobi Southern Bypass Highway that relieves congestion through the capital city Nairobi by redirecting traffic to and from the port city of Mombasa. Mombasa has a population of over three million and receives visitors from Uganda, Burundi, Rwanda and South Sudan. “There is no doubt the infrastructure projects financed and developed by China are making a huge impact in the country, especially when you look at the ease of travel and employment opportunities,” said Philip Mainga, managing director of Kenya Railway Corporation.

The World Bank also helped rural regions with its Kenya Informal Settlements Improvement Project. The project involved the construction of more than 60 miles of roads. Also, the project built 52 miles of footpaths, 66 miles of drainage canals, 39 miles of sewer pipelines, 68 miles of water pipelines and 134 security lights by its end date of November 2019.

Progress Ongoing in Kenya

Various organizations completed many other projects that have benefitted millions of Kenyans. Vision 2030 includes ambitious goals that will benefit its economy and people through job growth, key sectors growth and poverty reduction. One of Kenya’s key sectors, tourism, already saw a 5.6 percent growth in 2018, which is higher than the global average of 3.9 percent. The Information and Communication Technology sector saw an average growth of 10.8 percent since 2016, giving Kenya its “Silicon Savannah” name. Kenya’s poverty rate continues to decline as the country develops. Its poverty rate lowered from 46 percent in 2005 to 36 percent in 2016, demonstrating that progress is ongoing in poverty reduction and industrialization in Kenya.

Lucas Schmidt
Photo: Flickr

Transport Infrastructure in Myanmar
One way Myanmar is accelerating economic development, and therefore reducing poverty, is through investing in transport infrastructure. A major side effect of economic development is poverty reduction. Development often results in job growth, higher productivity and improved education. Myanmar, as well as other developing countries, noticed massive poverty reduction that followed economic growth. However, economic growth is not the only solution to reducing poverty. Despite the southeast Asian country reducing poverty from 48.2 percent in 2005 to 24.8 percent in 2017, poverty still affects one in four people. Myanmar is currently updating and adding roads in rural areas. Additionally, Myanmar is constructing bridges, highways and railways to increase transport between Thailand, an important trade partner.

Benefits of Investing in Transport Infrastructure

Based on the Asian Development Bank’s (ADB) 2016 Myanmar Transport Policy Note, the country needs about $60 billion in transport investments between 2016 and 2030 for transport infrastructure in Myanmar to be completely developed. Myanmar has approximately 20 million people who lack basic road access. Further, 60 percent of highways are in poor condition. The ADB also stated that Myanmar’s GDP could potentially increase to 13 percent or about $40 billion if transport infrastructure investments increased to 3 to 4 percent of the GDP. For reference, Myanmar spent about 1 to 1.5 percent of its GDP on transport infrastructure between 2005 and 2015.

Policy for Transport Infrastructure

As part of Myanmar’s Sustainable Development Policy 2018-30, transport infrastructure development is a prioritized area. The third goal in the report relates to creating jobs and boosting the economy with the help of the private sector. The National Strategy for Rural Roads and Access 2016, Myanmar National Transport Master Plan 2016 and National Export Strategy 2015-2019 are three plans focused on upgrading or constructing transport infrastructure in rural and urban areas. Investing in transport infrastructure in Myanmar could improve trade between Thailand and other countries, as upgraded ports, railways, roads and bridges will open up the country for trade.

Bridges and Roads

The second Thai-Myanmar Friendship Bridge is a bridge over the Moei River in east Myanmar that opened in 2019. The $126 million bridge connects the city of Myawaddy in Myanmar with Mae Sot in Thailand. Myanmar expects the bridge will significantly improve business between the two trade partners.

Two bridge projects in the capital Yangon are also underway. The Yangon-Thanlyin Bridge will connect the capital with Thanlyin, a major port city that handles most of the export and import shipments into and out of Myanmar. Estimates determine that construction on the $278 million bridge should end by 2021. Another bridge connecting Yangon with Dala in the southwest costs $188 million. Construction for this bridge should end by 2022. Dala is an underdeveloped and rural area that lacks bridges across the Yangon River; therefore, this forces inhabitants to take a ferry to cross the river. The bridge will not only help locals reduce travel time but also increase trade throughout Yangon.

Railways

Investments also include the construction of railways, after Myanmar noticed that the number of vehicles on roadways doubled from 2012 to 2016. Traffic within Yangon has become two to three times slower within the same time period. Yangon has a population of more than seven million, so reducing traffic congestion is an important issue. This also explains the push for bridge construction within the capital. The result of this observation led to the creation of the National Transport Master Plan in 2014. One part of the plan involves upgrading the $3 billion Yangon-Mandalay rail line. Work began in 2018, and it should be completed by 2023. Travel times between Yangon and Mandalay will likely reduce from 12 hours to eight hours.

Progress

Evidence of further progress in transport infrastructure in Myanmar is clear through the paved highway network, which increased by 35 percent. The country is developing at around 6 to 7 percent; however, according to the ADB, further investment in transport infrastructure is necessary to completely develop the transport sector. Job growth and improved trade are two major results of transport infrastructure investment. As the bridges and railways come to completion in the coming years, transportation within and outside Myanmar could greatly improve.

Lucas Schmidt
Photo: Wikipedia Commons

The Marshall Plan to Mobilize African Development
According to the Population Reference Bureau, Africa’s population will more than double by 2050, from 1.2 billion people to 2.5 billion. Africa already suffers from food, energy and job shortages, and its current population makes up about 17 percent of the world’s population. However, with this current growth, its population would balloon to an estimated 20 percent. As a result, Europe realizes that African development is going to have a large impact on the 21st century and that action is necessary. This action includes the Marshall Plan to mobilize African development.

The Solution

Although Africa struggles with the aforementioned shortages, it withholds 15 percent of global oil reserves. In addition, 40 percent of gold reserves and 80 percent of platinum reserves are located there. The largest expanse of agricultural land in the world is also in Africa. Based on this, Germany is spearheading the Marshall Plan initiative to mobilize African development and promote private investment on the continent. This is part of the G20 (EU in conjunction with 19 other countries). Africa currently relies on donors and other countries for support, but this new initiative will help Africa become more self-sufficient.

With the predicted population explosion, Africa must create more jobs and opportunities. To do so, the G20 needs private investment to make Africa appealing to potential investors. Other changes that will support this initiative include protecting human rights, strengthening the economy and implementing good governance. Through this, the G20 also needs to address and solve problems in Africa. These problematic elements consist of trade, arms sales to crisis areas and illicit financial flows. This will require strong international cooperation and partnerships between developed and developing countries.

The Marshall Plan includes ensuring food and water security, bolstering infrastructure, embracing digitalization, increasing access to energy, health care and education in Africa. To accomplish this, the G20 also plans to give Africa a seat on the U.N. Security Council. This will provide the country with heightened authority in international organizations and negotiations.

G20 Partnership Pillars

Partnership pillars that the Marshall Plan is prioritizing are promoting private investment, developing infrastructure and improving economic growth. Analyzing pre-existing initiatives will promote private investment. Promotion will also include tailoring country-specific measures to improve the framework, involving business and financing. Africa will develop infrastructure by expanding on pre-existing initiatives and sharing any knowledge on infrastructure investment and how to manage it and natural resources. Finally, the creation of an initiative to promote employment via skills development and training (Initiative for Rural Youth Employment) will improve economic growth.

Related Initiatives

Related initiatives include AU’s Agenda 2063, the Addis Tax Initiative, the Programme for Infrastructure Development in Africa (PIDA), the Sustainability, Security and Stability in Africa Initiative and the EU’s European External Investment Plan (EIP). For the Marshall Plan to succeed, it must fit in with the other initiatives and fill in gaps to promote change in Africa. Supporting organizations of the Marshall Plan include the African Union, the EU and the NEPAD Agency.

The Future

As of 2018, the cabinet has already passed the Marshall Plan to mobilize African development; however, it has not taken any further action yet. Experts worry that the plan could become obsolete if people have unrealistic expectations of what it will cover. A common misconception is that the plan will automatically secure peace and create jobs and growth for Africa. It is working towards that, but there is no guarantee. If action follows soon and private investment grows, Africa will be well on its way to self-sustainability.

– Nyssa Jordan
Photo: Flickr

Roads for Water Benefits Infrastructure
Infrastructure is the physical and organizational structures necessary for the operation of a society or enterprise. This includes buildings, bridges and roadways. Roadways are a significant factor in ending poverty. Without safe roads, children are unable to go to school, employees cannot get to work safely and supplies like food and water cannot reach remote areas where poverty is most prevalent. The lack of clear infrastructure creates a tremendous economic and social cost. In fact, over 1.1 billion people are without electricity across the globe, which is 16 percent of the world’s population. Additionally, almost 663 million people across the globe lack access to clean water and 2.4 billion people have no sanitation. Even more astounding is that one-third of the world’s population does not have access to all-weather roads. Roads for Water benefits infrastructure by improving road maintenance costs while providing water that people can use.

Roads for Water

Roads for Water is part of a larger association of organizations aiming to promote road water harvesting. The consortium mainly focuses efforts in areas with severe poverty including Africa, the Middle East and parts of South America. Road water harvesting involves using roads as major instruments of water management and sustainability. Further, the roads are integral to transferring water across long distances to reach rural areas and others with no access to safe drinking water. About 20 percent of land surface across the globe is within one kilometer of a road. These are generally the most populous areas with easy access to water sources. Often, roads can alter the ebb and flow of water through corrosion and sedimentation. Harvesting this water and relocating it is better for the environment and for those who require access to potable water sources.

Benefits of Road Water Harvesting

In countries stricken with poverty, people typically forget to maintain infrastructures, such as failing bridges, dilapidated buildings and damaged roadways, or they are low on the list of priorities. In addition, the damage makes it difficult to access water sources. Roads for Water manages water with infrastructure which leads to three ways that Roads for Water benefits infrastructure:

  1. Reduced costs associated with maintaining roadways. Building resilient roadways that are long-lasting with minimal maintenance is beneficial because it is more cost-efficient. The program also invests time and effort into maintaining roads in order to make road water harvesting more sustainable.
  2. Less destruction to landscape and rural farmlands. People build roadways more efficiently and in more convenient locations without disrupting farmlands and vast landscapes. The roads coincide with access to towns and major landmarks in order to make water more accessible for larger groups of people. Harvesting does minimal damage to the landscape; whereas other methods, like natural erosion and sedimentation, are more damaging because they destroy larger areas of ground.
  3. Water that people harvest through the road is more productive and improves consumptive water usage. Road harvesting focuses efforts on gaining water through and under roadways. People build the roads in a manner that allows for easy accessibility for tools, which creates less road damage when strategies are already in place. People can use water for multiple purposes if they have more access to it. This expands from cleaning and drinking to hygiene and consumer products.

Countries that Roads for Water Has Impacted

In Malawi, there is a high potential for harvesting water from road networks. However, the country has not yet fully established these networks due to weather conditions and conflict. The government has fortunately acknowledged the need for this program and has initiated the Integrated Catchment Management as a way to address water resource management issues. With efforts from the government, Malawi has a much higher chance of accomplishing its water harvesting goals across the country.

In addition, Nepal has strict guidelines for who can participate in its road maintenance groups. The District Road Core Network (DRCN) is the group of main rural roads that provide access to Village Development Committees (VDCs), as well as being responsible for the sustainability and maintenance of the country’s District Development Committee (DDC). There is a vast amount of land available for road building and the Road Maintenance Groups (RMGs) are efficient teams that effectively carry out the process and routine maintenance of the DRCN, which includes making sure the roads are all-weather and stay open year-round. With the support of the Nepali government, RMGs can keep up with the roadway systems, making water more accessible to all areas of the country.

How to Help

Finally, agencies such as The Rockefeller Foundation, USAID, World Bank Group and others support Roads for Water. Contributions and fieldwork make up most of the models’ message. Find out more about how to become involved here.

Kaylee Seddio
Photo: Flickr

Rwandan Economy

Rwanda is located in the heart of Africa. Although the Rwandan economy is dependent on agriculture, Rwanda‘s infrastructure has made progress through its Urban Development Project. Kigali Innovation City is an effort to further develop the economy and invite businesses to invest in key areas such as commercial and retail real estate, biotechnology and education. Africa50 partnered with the Rwanda Development Board to improve basic infrastructure such as roads, drainage, solid waste management and sanitation. Thanks to these and other major projects, Rwanda has one of the fastest-growing economies in Africa. President Paul Kagame hopes to transition the economy from a subsistence farming economy to a service-oriented, middle-income economy by 2020.

Rwanda Urban Development Project

The Urban Development Project for Rwanda, approved in 2016, completed Phase 1 in October 2018. The project began in September 2017 and focused on infrastructure improvement and urban management in secondary cities such as Nyagatare, Rubavu, Rusizi, Muhanga, Musanze and Huye. Infrastructure is lacking in the country, yet the Urban Development Project is a solution to the following component: roads, solid waste management, sanitation and stand-alone drainages. The end date for the $100 million project is June 2021. About $80 million are directed towards component one – provision of basic infrastructure in secondary cities. The rest of the funds go towards three other components, such as technical assistance for sustainable urban management.

According to Minister of Infrastructure, Honorable Claver Gatete, “Phase 1 implemented under the World Bank funding in all six secondary cities is meeting the main objective to provide access to basic infrastructure and enhance urban management.” About 28.3 kilometers (17.6 miles) of urban roads and 13.8 kilometers (8.6 miles) stand-alone drainages were completed during phase 1. Another major component of the project is upgrading unplanned settlements in the capital city called Kigali. The last two components involve technical assistance for sustainable urban management and support for project management, as the scope of the project and funds involve substantial risks. The project’s progress was successful. Phase 2 began in July 2019.

Kigali Innovation City

Kigali Innovation City is a giant project garnering investors from across the globe. The main goal is to create an innovative business hub in the heart of Africa that’ll include four first-rate universities, innovative agriculture, healthcare, technology, financial services, biotech firms and both commercial and residential space. The targets include creating 50,000 jobs, generating $150 million in ICT (information and communications technology) exports annually and attracting more than $300 million in foreign direct investment. Africa50, the pan-African infrastructure investment program, partnered with the Rwanda Development Board to invest $400 million in the tech hub. The Africa50 investment shows interest in diversifying the Rwandan economy and promise in private investors developing the country through infrastructure and innovation.

Clare Akamanzi, CEO of Rwanda Development Board, stated the deal between the board and Africa50 is a key milestone in transforming Rwanda from an agriculture-dependent economy into a knowledge-based economy. About 75 percent of the labor force is agriculture-related, yet the service sector is gaining higher importance due to the fast-growing economy. The GDP growth rate rose from 4.6 percent in 2013 to 8.6 percent in 2018. It has steadily averaged about eight percent growth since 1999, which was after the country rebounded from the 1994 genocide that produced a devastating recession. The plans for university development in Kigali Innovation City shows promise in not only infrastructure development but also progress in improving education, a long-term solution to reduce poverty in Rwanda.

Future Outlook

The Rwandan economy is strong, and the progress made in the Rwanda Urban Development Project shows promise that the country can transition into a middle-income, service-oriented economy by 2020. A South American technology firm, Positivo BGH, saw growth in Rhanda’s emerging market and decided to open up a business in Kigali. Positivo BGH creates laptops made in Rwanda and employs more than 100 locals. With Africa50 investing a massive $400 million into Kigali Innovation City and firms such as Positivo BGH expanding to Kigali, external investors are seeing potential in the fast-growing Rwandan infrastructure sector.

– Lucas Schmidt
Photo: Flickr

Infrastructure Development in Micronesia

The Federated States of Micronesia relies heavily on foreign aid, yet under its Infrastructure Development Plan 2016-2025, it plans to gain self-reliance and growth in six main areas. In addition, the Sustainable Energy Development and Access Project and the Maritime Investment Project, funded by the World Bank, are two major projects that are already underway. The developments are in key areas, such as fishing and island connectivity, which many Micronesians rely on for their livelihood.

Federal States of Micronesia Infrastructure Development Plan 2016-2025

As part of Micronesia’s Infrastructure Development Plan, economic growth and self-reliance are two areas of improvement. Micronesia is a remote region containing more than 600 islands northeast of Papua New Guinea, 74 of which are inhabited. Due to its remoteness, tourism and investment in the main regions of Micronesia are sparse. The Infrastructure Development Plan is focused on six main areas: macroeconomic stability, good governance, developing a private sector-led economy, health and education services, infrastructure improvement and long-term environmental sustainability.

Under this umbrella, Micronesia already has a number of accomplishments under its belt. Specifically, the School Facility Repair and Construction Master Plan came to fruition in 2013. Likewise, the Airport Master Plan was completed in 2012 and involves safety and security in air transportation. There are four international airports, and development in air transportation is another step to attracting tourism to Micronesia, and therefore, income to those employed in the tourism industry. Although infrastructure development in Micronesia covers many areas, positive economic growth and progress in becoming self-reliant are two important goals for developing its economy.

Sustainable Energy Development and Access Project

The World Bank donated $30 million to Micronesia’s Sustainable Energy Development and Access Project in December 2018. The project aims to increase electricity access and quality and to reduce the reliance on fossil fuels. The four main states of Micronesia, Pohnpei, Kosrae, Chuuk and Yap rely on fossil fuels like diesel. About 96 percent of electricity use in Micronesia comes from fossil fuels, and about 75 percent of the total population has access to electricity.

The project’s goals are the following: increase electricity status in the state of Chuuk, increase renewable energy generation in the states of Chuuk, Kosrae and Yap, improve performance of the Pohnpei Utility Cooperation and provide technical assistance relating to governance, accountability and financial performance of the energy sector. Electricity access varies on the islands. Only 27 percent of the population in Chuuk has access to electricity, yet Pohnpei has a 95 percent electrification rate. The project aims to provide access to renewable energy to the islands for long-term use.

Federated States of Micronesia Maritime Investment Project

The Maritime Investment Project is another source of infrastructure development in Micronesia that was approved on May 9. At a cost of over $38 million, its focus is to increase efficiency, safety, security and climate resilience of maritime infrastructure and operations in Micronesia, including upgrades or repairs to terminal structures at Kosrae, Pohnpei, Chuuk and Yap ports. The project will also improve the connection between the islands with regards to access to food, water and emergency response services.

More than 90 percent of exports are fish. The project benefits not only for infrastructure development in the major ports but also for Micronesians that work in the strong fishing industry. The project ends on August 1, 2024. Sihna Lawrence, Microneisa’s Secretary of the Ministry of Finance, said, “Guided by our Infrastructure Development Plan, we look forward to working with the World Bank to improve our maritime transport and develop stronger connectivity across the archipelago.”

Ongoing Infrastructure Developments

Micronesia’s goal of self-reliance is given through the development plan and projects. Infrastructure development in Micronesia is a major move toward reducing the 41 percent poverty rate and improving health, education and the overall wellbeing of Micronesians.

– Lucas Schmidt
Photo: Flickr

Industrialization of the Ivory CoastAlthough the Ivory Coast has a high poverty rate of 46 percent, its gross domestic product growth rate ranked number 10 out of 224 countries. High GDP growth implies increased productivity, which also leads to industrialization. The Industrial Revolution caused productivity to skyrocket along with mass industrialization and thus brought the poverty rate down. The industrialization of the Ivory Coast might be the key to eliminating the high poverty rate.

The Current Economy of the Ivory Coast

Rising prices of cocoa in 2018 and increased crop production marked a positive turn for the Ivory Coast since at least two-thirds of its population works in the agricultural industry. The Ivory Coast is the world’s biggest producer of cocoa. Although the amount of cocoa in the market surprised even analysts, the Ivory Coast must still transition from agriculture into manufacturing and service industries. This follows the same pattern of evolution that the U.S. and Japan took as they were industrialized. The transitional period will be long and gradual as industrialization is a major change to an economy.

To sustain one of Africa’s fastest-growing economies, the government is investing more than $7 billion in infrastructure between 2018 and 2023. Most of the investment was directed to the capital and major port city Abidjan. “We want to be an emerging country but to achieve that, we will need high-quality infrastructure to support the economy,” states Amede Koffi Kouakou, Minister of Economic Infrastructure. Kouakou explains work must be done to fix the roads damaged by floods. A train network and bridges to Abidjan are other investments currently underway. The roads are in poor condition. However, an infrastructure boom is a sign that the country is prepared to become an emerging economy.

The Benefits of Industrialization

Japan presents an industrialization success story. From the 1880s to 1970, Japan grew rapidly and became a powerful economic leader by the 1980s. Japan is now highly developed and is the third-largest economy in terms of nominal GDP, just behind the European Union and the United States. The process of becoming one of the most powerful economies took enormous effort and focused on infrastructures, such as building roads, schools and hospitals. Japan decreased its poverty rate from an unusually high number, the exact figure is unknown, to 16 percent as of 2013. In comparison, the U.S. has a poverty rate of about 15 percent. Ultimately, the progress Japan made originated with industrialization.

Job creation would be a major benefit of the industrialization of the Ivory Coast. Poor farmers flock to jobs and receive training. In turn, they become a valuable asset to companies and the particular industry. Another benefit is the advancement in farming equipment and machinery. These advancements will increase productivity and improve the quality of crops. This results in a more automated agricultural industry where machines do the arduous work and leave extra income to buy products and services.

“In developed countries, economic growth is driven by industrialization underpinned by strong manufacturing. We need to engage African leaders and policymakers to promote industrialization on the continent if we are to accelerate Africa’s transition into a middle-income continent,” states Joseph Mungarulire, director-general of the National Industrial Research and Development Agency in Rwanda. Mungarulire explains that Africa is mostly supported by agriculture, not industry, which leads to slow industrialization and high poverty.

A Pre-Requisite for Industrialization

Industrialization of the Ivory Coast must begin with a strong, stable government that welcomes private investment whether abroad or within its borders. Thankfully, China sees opportunity in investing in Africa. By 2018, China had invested more than $60 billion in Africa. Part of this investment is for building railroads, a simple but life-changing idea that brings jobs and people, just as it did in the U.S. from the 1830s to 1860s. The industrialization of the Ivory Coast, along with investments by the public and private sector, might be the solution to reduce poverty in the country.

Lucas Schmidt
Photo: Flickr