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The Impacts of the USAID Complete Project in Palestine

The USAID Complete Project in PalestinePalestine is a region in the Eastern Mediterranean that encompasses parts of modern-day Israel, the West Bank and the Gaza Strip. It holds deep cultural, religious and historical significance for Jews, Christians and Muslims alike. Palestine, unfortunately, is in an economic tanking, with an estimated 45% increase in its poverty rate if things continue the way they have been. In 2000, the agricultural sector was the largest for the Palestinian economy, making up 22%. Today, it rests at 5-6% and slowly decreases as time goes on. However, with help from The United States Agency for International Development (USAID) and the Competitive Economy Program for Trade Enhancement (Compete) Project, Palestine has hope to turn things around.

Agriculture in Palestine

The agricultural sector in Palestine is facing significant challenges, with Israeli restrictions on land and water access exacerbating the situation. The agricultural sector in Palestine has been experiencing a decline in its contribution to the country’s GDP and a reduction in the number of people employed within the industry.

One of the main reasons for this trend is the absence of a clear government vision for the sector. Additionally, local farmers find it difficult to compete with Israeli products that are flooding the market. This competition often results in a lengthy inspection process, which can cause spoilage of produce and further losses for Palestinian farmers.

Additionally, fertile lands are being converted into industrial zones, displacing farmers and contributing to environmental degradation. As agriculture provides economic opportunities such as job and food security, income generation, land preservation and export potential, conserving its remaining effects on the country’s overall well-being and economic success is increasingly crucial.

The Complete Project

The USAID Complete project in Palestine aimed to strengthen the competitiveness of Palestinian enterprises and facilitate their access to domestic and international markets. It focused on various sectors, including agriculture, manufacturing and services, to promote economic growth and job creation in the Palestinian territories.

The project provided technical assistance to companies to enhance their product value. It facilitated connections between smaller businesses and larger producers/exporters for more efficient market access. By improving information flow, product quality and technology adoption, Compete empowered firms to seize opportunities. Ultimately, the project aided 1,797 firms, resulting in a $383 million sales increase and $254 million in exports, creating more than 6,900 jobs and leveraging $105 million in private investment.

The Strawberry King

Osama Abu-Al Rub is one of the 20 strawberry farmers left in the West Bank. He began receiving aid from USAID in 2013 and has grown his business exponentially since then by gaining the opportunity to invest in technological advances such as computerized irrigation and by experimenting with covered, hanging growth techniques.

Osama’s success in his strawberry farming has allowed him to send his daughter Hanin to university, where she studies agricultural engineering. Occasionally, her friends visit their farm to learn new tactics from her father, which they will carry into the future of Palestine to generate success for decades to come.

The Future of Palestine

USAID has targeted a main core issue for the Palestinian economy and has significantly invested in eradicating the problem at hand. Even with restriction and pushback from some of the American people and government, USAID has found ways to implement knowledge and a foundational base that can potentially send Palestine’s economy skyrocketing if built in the right ways. By implementing these strategies, the Compete Project can help transform the agricultural sector in Palestine into a vibrant and dynamic contributor to the economy, generating employment, increasing incomes and fostering sustainable economic development for years to come.

– Tristen Jerkins
Photo: Flickr

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Human Trafficking: 5 Companies Fighting It

Human TraffickingThe fight against human trafficking stands as one of the most important causes in the modern world. Every year, it is estimated that some form of international slave trade traffics 600,000 to 800,000 people. Therefore, the fight is essential because it champions providing basic human rights to everyone and aids impoverished countries in improving. 

While not every single person has the capacity to stop slave labor physically, everyone can contribute in many ways, even by simply purchasing useful or pretty products. Here, we list five interesting products and companies that help stop human trafficking.

Purpose Jewelry

Purpose Jewelry is a company that sells handmade jewelry made by survivors of human trafficking. The company rescues the girls from brothels and sends them to live in its trademarked “Sanctuaries,” where it trains them to make jewelry. It also provides them with health care, mental care and education. The girls also earn full salaries for their work. The company invests 100% of its profit back into helping the victims. Currently, the company assists victims from Mumbai, Cebu, Kampala and Tijuana. 

Elegantees

Elegantees creates casual but stylish clothes that any woman can wear. Its priority is sustainability, using cotton and deadstock materials. Most importantly, the employees are primarily girls who are survivors or at risk for human trafficking from Nepal or India. “The Nepal-India border is one of the busiest human trafficking gateways in the world,” with a report showcasing that around 50 women are illegally transported from Nepal to India daily.

The company explains very simply that poor girls often get tricked into brothels because they are looking for jobs. If companies quickly provide safe jobs, human trafficking intermediaries are cut out. All workers are adults, earn a livable wage and receive overtime, vacation and any other benefits you would expect from normal working conditions.

Dignity Coconuts

Dignity Coconuts is a company tackling a unique poverty-related problem in the Philippines. Coconuts are the country’s largest crops grown, with both large plantations and small-scale farmers involved in their production. However, this has resulted in a serious issue known as “copra slavery.” Many companies and countries prefer to purchase products from large-scale farmers, which often drives smaller farmers into poverty. This leaves them vulnerable to human trafficking and at the mercy of larger farms. 

As a result, they are usually forced to beg for loans that they will never be able to repay. Dignity Coconuts changes this dynamic by enabling customers to purchase coconut oil directly from the farmers in the Philippines. The organization has more than 150 farmers on board, which means 150 farms providing jobs for people, protecting them from poverty and desperation that might lead them to trafficking jobs, including running the slave trade.

The Starfish Project

The Starfish Project is an organization that rescues girls from brothels and provides them with training in making jewelry and crafts. Additionally, the girls can continue their education while working there. They can move up in the company hierarchy from crafting to having full careers in fields such as accounting and photography. It is worth noting that the Starfish Project focuses on rescuing rather than prevention. More than 180 women have been able to escape human trafficking situations and turn their lives around thanks to the Starfish Project’s efforts.

Good Paper

Good Paper is a company that creates handcrafted cards for various occasions. The cards are produced in two locations: one in the Philippines, which supports victims of sex trafficking and the other in Rwanda, which helps victims of genocide. 

The Philippines is one of the highest-risk countries for trafficking, with 60,000 to 100,000 children being the victims of sex trafficking. You can make a difference in someone’s life by purchasing a card from Good Paper. Each card is signed by the person whose life you have helped change by supporting this company.

The above products are available for purchase by the average consumer. By buying them, you can help support victims of human trafficking and prevent more people from falling into this terrible crime. Furthermore, improving the economic situation of the victims can help reduce poverty overall.

– Varsha Pai
Photo: Pixabay

Agriculture and Poverty in Mozambique

Poverty in MozambiqueMozambique is currently one of the poorest countries in the world, ranking 181 out of 189 on the Human Development Index. Like many African countries, Mozambique’s political unrest and internal conflict stopped it from reaching long-term economic stability, contributing to the pervasive challenges of poverty. Additionally, repeated cyclones in the region destroyed infrastructure and efforts to rebuild. However, due to its coastal location, rich natural resources and biological and cultural diversity, Mozambique has had an important role in the maritime economy of the Indian Ocean. It has made progress economically since its independence, “with an annual GDP growth rate above 7% in the last five years.”

Political Context of Mozambique

A former Portuguese colony to whom it provided many agricultural products, Mozambique gained its independence in 1975 but quickly plunged into civil war afterward. The new government, under President Samora Machel, established a one-state party based on Marxist principles, receiving some military and diplomatic support from Cuba and the Soviet Union. Internal conflicts tore Mozambique as it “battled anticommunist forces funded by South Africa and the former Rhodesia, now Zimbabwe, for control of the country,” according to Britannica. This resulted in the displacement and death of many, and in turn, hindered economic development and discouraged foreign aid. “Despite having one of the fastest-growing economies in sub-Saharan Africa from 2000 to 2015, job creation, poverty reduction and human capital accumulation are still issues in the country,” according to the World Bank.

Poverty, Natural Disasters and Disabilities Mozambique

Of the 27 million people living in Mozambique, 60% live in poverty and more than 70% live in rural areas where access to basic resources is scarce, according to the International Fund for Agricultural Development (IFAD). Farmers and fishers generally make enough to sustain their households, but incomes are limited. The agricultural sector represents 85% of people’s incomes and there is little opportunity outside of it, with the remaining 15% working in industry and services. Poverty is highly concentrated in these rural areas, creating a large divide between the rich and poor.

Natural disasters such as droughts, floods and cyclones have affected the country, especially in recent years. In 2019, tropical cyclone Idai caused catastrophic damage and created a humanitarian crisis in Mozambique, Malawi and Zimbabwe. The cyclone killed more than 1,000 people and destroyed around 100,000 homes. Since then, tropical cyclone Eloise and tropical storm Chalane have hit the same areas causing further damage to rebuilding progress since 2019.

According to a 2017 census, 2.6% of the population in Mozambique lives with a disability. According to UNICEF, 14% of children between the ages of 2 and 9 live with a disability and often experience discrimination at school and their everyday lives, such as their own families hiding them.

Solutions to Poverty in Mozambique

The agricultural sector remains the key to moving people out of poverty. International Food Policy Research Institute (IFPRI) study found that “a 1% growth in the agriculture GDP results in a 2.6% reduction in poverty, compared to 1% overall GDP growth resulting in only 0.25% reduction in poverty.”

While farming is the main source of income for the majority of those living in Mozambique, there is low productivity due to farmers still relying on traditional farming techniques, according to IFAD.

In Mozambique, IFAD “to integrate small-scale producers into profitable and accessible markets,” according to its website. Its result-based strategic networks focus on “improving access of smallholder farmers and artisanal fishers to technologies and services that increase productivity; increasing participation in markets for an equitable share of profits; and increasing access to sustainable financial services in rural areas.”

Similarly, USAID’s Feed the Future Mozambique Promoting Innovative and Resilient Agriculture Market Systems activity focuses on increasing agricultural-based income and market competitiveness to promote economic growth along the Nacala corridor of Northern Mozambique, according to its website.

Action on Poverty trained more than 600 farmers, 60% of whom are women, on how to grow sweet potatoes to increase nutrition. Additionally, it connects smaller farmers with local markets to earn more income, according to its website.

Looking Ahead

Mozambique’s rich resources and economic structure are inextricably linked. The 2023 IGM Annual Conference hosted in Maputo, Mozambique, brings hope to the future of inclusive growth and development and bridging the gap between the needy and the fortunate. Innovations in agriculture and market accessibility are key to promoting economic growth and stability, in turn lowering poverty.

– Elisenne Stoller
Photo: Flickr

Zambia’s Creative Cures to Combat Its Housing Crisis

Housing CrisisGlobally recognized as having one of the highest levels of poverty and inequality, Zambia has a long journey ahead to overcome this poverty, which was further exacerbated following the COVID-19 pandemic. However, arguably the greatest factor prolonging the struggle against poverty is its housing crisis. A shortage of quality and available housing leads to social unrest, the spread of diseases, medical challenges, water insecurity and limited employment opportunities. Therefore, the Zambian government has identified improved housing as one of its top priorities. It is developing creative cures to combat its housing crisis.

Why the Housing Crisis Arose

  1. Social factors: Zambia is not only experiencing a rapidly growing population, approximately 19.6 million as of 2021, but it is also projected to double in the next 25 years. It stands out as “one of the world’s youngest countries in terms of median age.” A population largely of working-age people results in an increased demand for jobs, support and housing at a rate that the current development cannot match.

  2. Rapid economic development: Zambia has become rapidly urbanized over the last few decades, perpetuating rising incomes and employment opportunities. Although this is a hugely positive step forward in the fight against poverty and insufficient economic and industrial operations, the rate with which these changes have come about has surpassed developments in infrastructure. This has exacerbated the housing deficit, at 1.5 million homes in 2023, but is projected to increase to three million by 2030. As a result, 70% of Zambia’s urbanites live in slums, necessitating creative cures to combat the housing crisis.

  3. Existing poverty: Although recent urbanization and industrial development have elevated the economic status of many Zambians, such progression has yet to penetrate rural populations. The main reasons for this are “while the agricultural sector is projected to grow, it hardly accounts for population growth and the sector is subject to high volatility.”

    The economic situation remains unstable and unpredictable. “More than 61% (2015) of Zambia’s 19.6 million people earn less than the international poverty line of $2.15 per day.” This means that although there are not enough houses to be purchased by those who have benefitted from the recent economic prosperity, a significant portion of the population still faces financial constraints preventing them from affording any available developed housing.
  1. Legislation: Apart from an insufficient number of houses, there are also issues with legislation around property ownership. The process of registering land takes an average of one year, leaving people without homes yet already engaged in the economic process of purchasing land. Current legislation fails to guarantee access to land, housing finance and security of tenure, as well as materials and skilled labor workforces. Challenges extend beyond legally securing the right to build or own a property, encompassing hurdles in the physical processes of construction and maintenance.

Steps Taken To Overcome the Housing Crisis

Although the housing crisis in Zambia constitutes a serious challenge, many methods are being researched and introduced. Zambia’s creative cures to combat the housing crisis strive to balance the housing deficit and address those areas of the population for whom property ownership remains economically inviable.

  1. Innovative construction methods: The Zambian government seeks to develop more economically and environmentally friendly construction materials as one of its creative cures to combat the housing crisis. Through public-private partnerships and with financial support from the Ministry of Infrastructure, Housing and Urban Development (MIHUD), a skilled labor force is being trained to “develop stabilized soil bricks,” offering a “low-cost and sturdy material for constructing quality houses.”

  2. Technology: The Land Survey Amendment Act of 2021 has promoted the “digitization of records to speed the process of title deeds,” so far addressing “approximately 300,000 records.”

  3. Financial support: For those with a monthly income of more than ZMW6,600 ($398), “Zambia Home Loans” offers supplementary financing for construction and land purchases. There are also more affordable schemes for those with less economic security. “Rent-to-own programs” provide more short-term housing opportunities, allowing renters to gain employment and economic security from a stable home. Alongside financial aid to potential renters and buyers, the Zambian government is providing funding for the construction of properties, signing agreements with “unions and banks to construct more than 40,000 units within the next decade,” constituting a “$1.4 billion investment for programs across the country.”

  4. Nonprofit support: The MIHUD works alongside private players to deliver “low-cost units for households residing in informal settlements.” Private partners include The Horizon Properties and Habitat for Humanity Zambia. Habitat for Humanity targets the nation’s most vulnerable groups. As a humanitarian organization, it has a plethora of programs in place to target areas such as water and sanitation needs as well. By actively participating in property construction and facilitating interest-free mortgages (micro-loans), the organization aims to promote housing security at all stages of the home-owning process.

Conclusion

Although it is undeniable that the housing crisis in Zambia is a serious challenge in the battle against poverty, the Zambian government and many other internal and external organizations have made it their mission to devise creative cures to combat the issue.

– Chloe Thomas
Photo: Flickr

Poverty Levels and Remittances in South Korea

Remittances in South KoreaEconomic growth and globalization have transformed South Korea, symbolized by its thriving urban centers and technological advancements. While the country continues to make impressive strides in economic progress, a new concern has emerged – the intricate relationship between remittances in South Korea and poverty levels. As the nation undergoes unprecedented development, the dynamics of remittance flows have become a focal point for researchers and economists seeking to unravel their far-reaching implications on the well-being of the South Korean population.

Poverty as a Result of Remittance Fund Disparity

Despite the transaction value of $4.9 billion projected in South Korea’s Digital Remittances market in 2024 — typically coming from developed countries — the distribution of these funds raises concerns about economic disparities and potential implications for poverty. Though the market is anticipated to expand, the average transaction value per user is estimated at $320,440, suggesting a concentration of larger remittances among a certain segment of the population. With a total of 176,400 users expected by 2027, there is a risk that a significant portion of South Korea’s population might not benefit from these remittance transactions.

According to the Organization for Economic Cooperation and Development (OECD), South Korea has the fourth-highest wealth disparity out of 38 developing global economies measured. OECD reports that in 2018-2019, the relative poverty rate in South Korea reached 16.7%, meaning one in six South Koreans lives on less than half the median income for the country. A large portion of those living in poverty are over the age of 65 and thus unable to find adequate employment. Many have little to no savings and reside in rural areas.

Unequal Distribution Among Population Centers

Disparities in accessibility and distribution of remittances means that certain regions benefit more readily than others, amplifying existing inequalities. Urban centers often become primary recipients, leaving rural and less affluent areas with fewer resources to combat poverty. This geographical imbalance underscores the importance of investigating not only the overall impact of remittances but also their specific regional implications.

The symbiotic relationship between economic progress, remittances and poverty levels requires a comprehensive and empathetic approach. As the economic landscape evolves, policymakers, economists and communities must collaboratively address the multifaceted nature of poverty. By acknowledging the interplay between urban prosperity and rural challenges, South Korea can craft targeted strategies that uplift the entire nation, ensuring that the benefits of economic success are shared equitably among all citizens.

Challenges of Unequal Access to Remittance Funds

The challenge of unequal distribution of remittances in South Korea is not solely geographic but also demographic. Certain demographic groups, such as migrant workers and marginalized communities, may face barriers to accessing the benefits of remittances in South Korea. 

Discrimination, lack of financial infrastructure and limited awareness of available support mechanisms can impede the equitable distribution of remittance funds, perpetuating social and economic disparities. While the research around reducing remittances disparity has yet to produce a solution, several non-government organizations (NGOs) are dedicated to addressing the issue in South Korea.

ChildFund Korea started in 1948 as a prominent international NGO. It has been instrumental in addressing the challenges of poverty in South Korea, particularly those stemming from the uneven distribution of remittances. Through its multiple regional headquarters, community welfare centers, foster care centers, child protection agencies and Hansarang Welfare Institutes for the Disabled, ChildFund Korea provides sustainable financial, physical and emotional support to help vulnerable children and families. The organization’s commitment to child protection and rights is widely recognized both within the Republic of Korea and internationally.

The Korea Trust Fund (KTF), in partnership with the World Bank Group (WBG), committed $15 million over three years to address fragility, conflict and violence (FCV), particularly in Asia and the Pacific. Established in 2009 with a primary emphasis on investment lending, the KTF facilitates project preparation and implementation support in key development sectors through catalytic grant projects. Additionally, the fund promotes innovative engagements for development in FCV by strengthening knowledge exchanges, cutting-edge analytics and capacity building, including partnerships with non-traditional actors like tech companies, in an effort to increase the distribution of remittances in South Korea.

Conclusion

As South Korea continues its journey toward economic prosperity, the impact of remittances on poverty levels is imperative to track. By acknowledging the challenges posed by unequal access and incorporating remittance considerations into planning, the nation can strive for a more equitable distribution of resources and a reduction in poverty levels for the well-being of its citizens.

Collaboration between government entities, financial institutions and non-profit organizations is paramount in creating a comprehensive strategy that not only recognizes the pivotal role of remittances in alleviating poverty but actively works toward fostering inclusive economic development.

– Mahima Bhat
Photo: Unsplash

Gender Wage Gap in Kuwait 

Gender Wage Gap in KuwaitAccording to the World Economic Forum, worldwide, nations are approaching gender parity. Their 2023 report found that gender inequality is lessening in the 146 countries examined. Currently, these countries’ gender inequality gap is 68.4% closed, a 0.3 percent increase from the year prior.

The State of Kuwait showed significant progress towards closing the gender wage gap in Kuwait. It increased its ranking by ten places, one of the highest achievements in the past year. That said, the country’s movement still placed it 120 out of 146 countries overall.

Women in the Workplace

A leading cause of gender inequality in Kuwait is due to economic activity. Women are paid significantly less than men in the workforce. In 2021, All-Shall Consulting Company found that in the government sector, male employees received an average salary of KD 1,874, whereas female employees received KD 1,312. This represents a 42.9% higher income for men in comparison to women or a $2,000 disparity.

In the private sector, the situation was even more pronounced. Men earned an average of KD 1,529, while women earned KD 974. This marked a substantial 56.9% increase in income for men compared to women in the private sector. Thus, men consistently earn more than women in both the government and private sectors.

Societal Factors

Cultural practices also plays a key role in this gap. The United Nations Women classifies Kuwait to be a high-income country with educational attainment for women at 100%. Health care access is at 97%. However, the divergence appears in issue areas. Kuwait also has an abysmal score of 2% for political empowerment and 54% for economic activity and opportunity.

The only legitimate way for women to engage in public activity is through women’s groups. Unfortunately, like all voluntary associations in Kuwait, women’s groups are controlled and funded by the state. Thus, they largely conform to official state policies that emphasize women’s traditional roles, rather than promulgating social change.

Looking Ahead

As of 2023, the Kuwaiti government has been taking steps to increase women’s economic opportunities. The most recent was approved in August 2021, the World Bank Kuwait Country Engagement Framework (CEF). The CEF includes a mandate that all advisory services provided by the World Bank in Kuwait will be viewed through a gender lens in order to promote women’s employment and leadership.

Kuwait has a national development strategy called ‘Vision 2035’ or ‘New Kuwait’ with the goal of transforming the country from oil-dependent to a diverse economy and becoming an institutional leader in the region. An essential part of this strategy is to boost women’s participation in the labor market.

Closing the gender wage gap in Kuwait offers a powerful solution to poverty alleviation and inequality. Providing working women with wages on par with their male counterparts would increase individual earnings and family incomes, leading to a substantial reduction in poverty. Indeed, the government is making it imperative to enforce state and national equal pay and employment opportunities.

Raising minimum wages, promoting stronger collective bargaining, and implementing family-friendly policies, such as paid family leave and subsidized child care, would play a significant role in ensuring that working women receive fair compensation and are better equipped to support their families. Thus, Kuwait is indeed on its way to succeeding as a leader in the region. 

– Naima Shahzad
Photo: Flickr

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Benefits of Increasing Economic Development Aid to Turkey

Economic Development Aid to TurkeyThe relationship between the United States and Turkey began in 1831 when the country was still the Ottoman Empire. Turkey is a member of the North Atlantic Treaty Organization (NATO) and one can best describe the U.S.-Turkey relationship as diplomatic. While the United States only had $220 million in obligations to the Western Asian country in 2020, more economic development aid to Turkey could help alleviate poverty and an ongoing economic crisis.

Poverty in Turkey

In 2019, the World Bank reported that 0.4% of Turkish citizens lived in poverty. In a country of 84 million people, that equates to 336,000 impoverished people.

One of the most significant factors contributing to poverty in Turkey is the lack of education. In 2019, only 66% of the population 25 and older had finished lower secondary education. Low education attainment gives rise to unemployment. In 2021, unemployment in Turkey stood at 13.4%. While the COVID-19 pandemic does stand as a contributing factor to the unemployment rate, the unemployment rate increased only about 3% since 2018.

With the unemployment rate also comes low wages, which factors into poverty. In 2018, the average wage stood at about 4,000 Turkish lira (about $220). But, the cost of living in Turkey jumped nearly 70% in April 2022, according to the BBC. To try and counteract that, the Turkish government has raised the minimum wage to 5,500 lira a month, but citizens say rent alone equates to “3,000-4,000 Turkish liras.”

Foreign Aid to Turkey

The majority of foreign aid to Turkey from the United States comes from the U.S. Department of State, largely going toward humanitarian aid. The Department of Defense gave Turkey $28.43 million in 2020 for “conflict, peace and security” programs. However, Turkey only received about $2.8 million through the Trade and Development Agency for economic development.

Trade and the Economic Crisis

Money for economic development from the Trade and Development Agency involves creating economic opportunities by exporting goods from the United States for development projects. This is beneficial to the United States as the money is invested in the Turkish economy through products produced domestically. In turn, that investment is returned through the continued trade partnership of U.S. goods.

The trade relationship between the United States and Turkey has increased significantly since 2009. According to the Office of the United States Trade Representative, from 2009 to 2019, U.S. exports to Turkey increased by about 41% to $10 billion.

Despite a GDP increase of 0.9% in 2019, Turkey is facing an economic spiral. The value of its currency, the Turkish lira, has endured instability since 2018. Outstanding circumstances like the pandemic and economic sanctions have created a perfect storm of financial woes for the country, along with rampant inflation.

In November 2021, the value of the lira dropped sharply by 30%, triggering another wave of panic in the country. In 2022, the war between Russia and Ukraine exacerbated these financial circumstances, with Turkey seeing inflation rise more than 70% this year.

The United States can help alleviate poverty and the ongoing economic crisis via increased foreign aid to Turkey, especially through economic development. Expanding programs through the Trade and Development Agency would be one instrumental way to facilitate change in Turkey. Additionally, increasing economic development aid to Turkey could greatly aid the stability of the country until the lira crisis resolves.

– Emma Rushworth
Photo: WikiCommons

Togo Opens First Data Center in Lomé

Data Center in LoméIn July 2021, the African country of Togo took another step in its efforts of digital transformation and economic progress as it opened Togo’s first data center in the capital city of Lomé. The construction of the data center in Lomé began three years ago and was funded by a loan from the World Bank and the West Africa Regional Communications Infrastructure Project. The facility is part of the government’s plan for economic development and digital advancement. As Togo attempts to cement itself as a West African hub, Togo has risen about 50 spots in the World Bank’s “Doing Business” report in the last couple of years.

Poverty and Economic Development in Togo

Togo has made strides in growth leading up to 2020, but even pre-pandemic, past poverty levels were still high. More than half of the population has been living under the poverty line for years prior to the pandemic, according to the World Bank. The World Bank and the International Finance Corporation have lent the government a hand in improving conditions for its people by putting resources into the financial, energy, transportation and manufacturing sectors, which played a major role in Togo’s jump from 137th to 97th place in the Doing Business 2020 report.

Digital Transformation of Togo’s Economy

With investments into Togo’s digital economy and infrastructure, the country plans to grow in its wholesale broadband market and cheapen service costs for its people. The government aims for a complete structural reformation of the Togolese economy. In the hopes of job creation and modernization of key institutions, Togo’s data center was constructed as a part of the long-term investment into digital technology.

Hawa Cissé Wagué, the World Bank resident representative for Togo, tells the World Bank that the pandemic has displayed the necessity of increasing Togo’s digital infrastructure in order to improve services and economic productivity. So far, Togo’s data center and its development have mildly restored its reputation and its future looks bright as foreign investment ramps up with a number of prominent banks in the region choosing to operate and do business within Togo.

Impact of the Data Center in Lomé

The secure, quality and reliable nature of the advanced technology makes the investment into the data center significant in the long run for the Togolese economy. The locally stationed data center will directly impact the surrounding community by providing employment opportunities within the facility itself but it will also have a ripple effect and extend throughout the country, according to government plans. Distributed data centers offer lower transaction costs as well as convenience when it comes to digital regulations. The centers also come with lower geopolitical risks and are safer for data storage.

– Gene Kang
Photo: Flickr

3 Groups Creating Jobs in Underdeveloped Countries

3 Groups Creating Jobs in Underdeveloped CountriesPoor infrastructure and lack of job opportunities are among the top reasons that underdeveloped countries remain in poverty. Creating jobs in underdeveloped countries is key to achieving developmental goals and providing economic and political stability that can help many developing countries out of destitution. Furthermore, jobs provide income, independence and choice to individuals. It is for these reasons that creating jobs in underdeveloped countries can improve conditions and help in eliminating hunger and poverty. Creating new job opportunities can also help advance gender equality and many other pending societal issues.  In September 2015, many organizations came together to establish the U.N. 2030 Agenda for Sustainable Development, which recognized the importance and impact of jobs on these economies. Since then, corporations and organizations have been launching efforts to try and reduce global poverty by creating more jobs in developing countries.

3 Groups Creating Jobs in Underdeveloped Countries

  1. The Overseas Private Investment Corporation (OPIC): This U.S.-based finance development organization has long created jobs in underdeveloped countries that have boosted countries’ economies. OPIC has supported major infrastructure projects such as airports and hospitals, which have created many construction jobs. It also has provided and allocated financial resources to entrepreneurs in developing countries. These resources give entrepreneurs the means to start and grow their businesses, which will, in turn, produce more jobs. In 2019, OPIC merged with the Development Credit Authority, which was a part of the United States Agency for International Development (USAID), to form the Development Finance Corporation (DFC). The DFC partners with the private sector to invest in energy, healthcare and technology initiatives, as well as infrastructure and jobs.
  2. The World Bank: The international organization works to reach goals in the employment sector by launching efforts to improve financial access, provide financial training and build more robust infrastructures for lacking governments. Due to the World Bank’s international efforts, countries are recognizing the top challenges they face using job diagnostics. After evaluating data, governments can focus on more pressing socioeconomic issues. This will create jobs that benefit people in need and give them more economic stability. The World Bank counsels governments to invest in transportation, information and communications to connect more people to job markets. Finally, the World Bank is responsible for developing programs that promote entrepreneurship in small-and-medium-sized businesses.
  3. Mother’s Service Society (MSS): Founded in 1970, MSS is a social science research institute in Pondicherry, India, that leads research and conferences on subjects from global leadership to economic theory. MSS research projects and conferences develop action plans to increase employment and create jobs in developing nations. These plans detail multiple factors that, when combined, generate employment and boost the economies of these countries. According to MSS, the Newly Industrializing Economies (NIEs) in East Asia have demonstrated that more comprehensive strategies for job generation have yielded the most progress. More comprehensive strategies for job generation can include ideas such as having more of an emphasis on agriculture, promoting small businesses, improve marketing efforts, develop exports and employment planning.

More Strategies

Besides the great work of these groups, other comprehensive strategies for creating jobs in underdeveloped countries include extending basic education, improving higher education, raising productivity and upgrading the skill level of workers. By implementing these strategies, economies can close socioeconomic gaps, join the global market and create more job opportunities.

– Annamarie Perez
Photo: Flickr 

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Electricity Access: Improving Energy in Africa

Improving Energy in AfricaOne in 10 people in the world (800 million) have no access to electricity and the access of an additional 2.8 billion people is considered insufficient and unreliable. In regions with insufficient access to electricity, the standard of living is poor, particularly with regard to adequate healthcare and education. Africa is such a region. Half of the population of sub-Saharan Africa lives without electricity. Improving energy in Africa is essential for economic growth and prosperity across the continent.

The Consequences of Inadequate Energy Access

Energy is vital to reduce the cost of business activities and for creating economic opportunities and jobs. More than 640 million Africans lack access to electricity. When the sun sets for these individuals, workable hours in the day end. Insufficient access to energy can also restrict the economy more indirectly, by way of increased risk of deaths related to wood-burning stoves, restricted hospital and emergency services and compromised access to education.

Along with appropriate infrastructure, household health and productivity are essential for boosting economies. The persistent use of wood-burning stoves is evidence of lacking infrastructure that presents a burden to health and productivity. This dated method has drawbacks that include indoor pollution, deforestation and unpaid time spent collecting biomass fuel. In 2017, an estimated 600,000 Africans died due to indoor pollution.

Fulfilling household responsibilities requires more time and must be done within restricted hours when electricity is unavailable. These responsibilities often fall on women and children and prevent their participation in the formal economy or pursuit of education that could encourage later participation. African economies suffer because of these barriers to participation. Industrialization is key to economic growth in Africa. To industrialize the continent, energy in Africa needs to be sustainable and easily accessible to all.

Improving Energy in Africa

Africa already has significant capacity for improvements in energy. Much of this potential lies in renewable energy sources. For example, one-fifth of Africa’s current energy is produced using hydropower. Hydropower, however, is only being utilized to one-tenth of its potential. Along with hydropower energy, solar, biomass, wind and geothermal energy all show promise for further development.

There are several existing avenues for further development of energy in Africa. As a shift toward renewable energy is gaining momentum across the globe, largely due to its environmental advantages, the resulting new and affordable technologies may provide the needed boost to further industrialization in Africa. Ensuring that renewable energy innovations reach Africa and are suited to build on current capabilities is essential for economic growth throughout the continent.

The 2020 African Economic Conference (AEC)

The African Development Bank (AfDB), the Economic Commission for Africa and the United Nations Development Programme jointly hosted the 2020 African Economic Conference (AEC) from Dec. 8 to 10. The conference facilitated presentations and discussions among leading academics, early-career researchers, policymakers and decision-makers. The central theme of the conference was how to ensure continued sustainable development in Africa amid the challenges posed by the COVID-19 pandemic. Specific topics included the role of governments and private institutions in regulating and developing African economies, adjusting goals and methods to conditions brought on by COVID-19 and preparing Africa for future resilience in crisis. The conference has been held since 2006 and helps to maximally inform efforts toward development in Africa, consider the challenges unique to local economies and emphasizes the importance of sustainable and renewable energy.

The New Deal on Energy in Africa

The AfDB Group is leading the New Deal on Energy in Africa to help develop energy in Africa and achieve universal electricity access for Africans by 2025. Its strategy is to build awareness of barriers to economic development, secure innovative funding for energy developments and strengthen energy policy and regulation. According to the AfDB, without stable energy in Africa, the U.N. Sustainable Development Goals will not be achieved. The emphasized ideal for energy in Africa is renewable; nevertheless, efficient and less expensive methods of energy production can quickly work to stimulate the economy. Gas will be an important transition fuel as efforts are made to establish cleaner, maintainable methods.

Electricity Access for Economic Growth

Improving energy in Africa means that the continent needs reliable power grids and universal access to electricity to further economic stability. The path to sustainable energy in Africa is evolving thanks to new momentum derived from the global and continental potential for renewable energy development. Keeping energy progress in mind throughout pandemic response efforts is a goal of international organizations as they work together with Africa toward economic growth across the continent.

– Payton Unger
Photo: Flickr