Information and news about economic growth

Posts

Startup Companies in India
With a booming population and competitive economy, India has made a mark in the global playing field. However, nearly 60 percent of India’s population lives on $3.10 per day and 21 percent (250 million people) live on $2 per day. The uneven spread of wealth leaves many people in poor living conditions. The top 1 percent of Indians own 58 percent of India’s wealth, meaning 16 people own the wealth of 600 million people. Unfortunately, over 70 percent of the population still lives in rural villages and work labor-intensive jobs with minimal profits.

The extremely high growth rate of the population leads to a strain on resources. This leads to growing illiteracy and a lack of health care facilities and services. Some expect the total Indian population to reach 1.5 billion by 2026 which means the country will require 20 million new jobs to sustain its people. There is now a desperate need for a better solution to pull people and their families out of poverty.

The Nature of Startup Companies in India

The economy in India continues to compete on a global scale as highly intellectual individuals are progressing with new businesses and startups. In fact, India is the home of 48 million new businesses, which is more than twice the number in the United States at 23 million. The startup companies in India have unlimited access to software and intelligence, making it a competitive playing field. Due to the startups, India has the fastest growing economy and market place in the entire world, taking over China and the United States.

The number of startup companies in India is continuing to grow from 3,100 companies in 2014 to an expected number of 11,500 companies by 2020. The current day and age make India an ideal place of startups as entrepreneurs have access to the internet, educational initiatives and experienced mentors. All of these factors improve the success of startup companies. India has the third-largest startup ecosystem in the world, which was worth over $32 billion in market valuation in 2017. The ever-growing field has drawn in numerous foreign investors leading to a 167 percent growth in 2016 alone.

How Startup Companies Create Jobs

The Indian government has recognized the growing startup companies and has created a plan for ‘New India.’ This involves encouraging employment among the youth. The millennials in India can take advantage of the possible employment ventures as startups create an open atmosphere for innovation. With new information trends every year, these creative companies are creating jobs for people and reducing poverty as people can better support themselves and their families. The startups alone create one billion jobs for millennials. Companies such as Flipkart, Ola and PayTM have an equity of $1 billion, inspiring young entrepreneurs to take risks and start companies. In 2016, India had the most job creation of all countries in the Asia and Pacific Region.

What Now?

Despite the high poverty rates in India, there are new opportunities emerging for people to improve their living conditions. The startup companies in India are extremely successful and allow for families to improve their financial standings. The nature of the startup ecosystem makes it easier for people to start new businesses and become successful. Startup companies in India are changing lives and the same could happen in other countries.

– Haarika Gurivireddygari
Photo: Flickr

Economic Growth in Nigeria
Nigeria, a country located on the western coast of Africa, makes up to 47 percent of the population of Africa. With the rising amount of people surrounding the area, there has been a vast amount of poverty overtaking the country. Recently, the economic growth of Nigeria has risen due to many factors such as its production of oil. However, no matter how much the economy grows, poverty continues to rise as well due to the inequality between the poor and rich.

Economic Growth

In 2018, the oil and gas sector allowed the economic growth in Nigeria to grow 1.9 percent higher than the previous year when it only grew to 0.8 percent. Although that is where more of the growth is, the oil sector does not have physical bodies working to ensure that the industry continues to grow. This leaves no growth in the stock of jobs, leaving the unemployment rate to rise to 2.7 percent since the end of 2017. Many hope that the new Economic Recovery and Growth Plan (ERGP) will promote economic resilience and strengthen growth.

ERGP

ERGP projects that there will a growth rate of 4.5 percent in 2019, but within the first quarter, there was only a growth of 2.01 percent. Charles Robertson, the global head of the research at Renaissance Captial, believes that ERGP’s 4.5 percent target was not unrealistic, especially since Nigeria was unable to meet those projections. Because most of the country’s economic growth comes from oil, there have not been many other non-oil jobs that have made a lot of profit.

The plan not only focuses on the rate of economic growth but also makes predictions that the unemployment rate will decrease to 12.9 percent. With the lack of available jobs, there has been little to no change in this rate as well. Many of the individuals that do have jobs, however, are earning up to $1.25 or less per day, which is not enough to pay for one household.

Inequality

As the economic growth in Nigeria grows, so does the gap between the poor and the rich. With the poor as the bottom 23 percent, the gap between the two has widened to 16 percent. A lot of the high-paying jobs are looking for people that have received high-quality degrees. If one does not have the money to pay for a good education, then they automatically miss out on the job opportunities that are out there. This means, that the children that come from rich families are the only ones that will be able to get the best jobs in the market.

The current government has been running a cash transfer program that provides 5,000 nairas to each household per month, which is approximately $14. This amount is not enough to relieve any household expenses because “less than 1 percent of poor people are benefiting.” Without any increase in money for each household, one cannot do much to decrease poverty.

Although there is economic growth in Nigeria, poverty is still on the rise. Many countries have faced this problem with trying to break the balance between the two and found it has not helped to decrease poverty as much. Hopefully, as the ERGP continues, it will help make changes.

Emilia Rivera
Photo: Flickr

Coding in Ethiopia

Ethiopia is primarily an agricultural country, with more than 80 percent of its citizens living in rural areas. More than 108.4 million people call Ethiopia home, making it Africa’s second-largest nation in terms of population. However, other production areas have become major players in Ethiopia’s economy. As of 2017, Ethiopia had an estimated gross domestic product of $200.6 billion with the main product coming from other sources than agriculture.

Today, 1.2 million Ethiopians have access to fixed telephone lines, while 62.6 million own cell phones. The country broadcasts six public TV stations and 10 public radio shows nationally. 2016 data showed that over 15 million Ethiopians have internet access. While 15 percent of the population may not seem significant, it is a sharp increase in comparison to the mere one percent of the population with Internet access just two years prior.

Coding in Ethiopia: One Girl’s Success Story

Despite its technologically-limited environment, young tech-savvy Ethiopians are beginning to forge their own destiny and pave the way for further technological improvements. One such pioneer is teenager Betelhem Dessie. At only 19, Dessie has spent the last three years traveling Ethiopia and teaching more than 20,000 young people how to code and patenting a few new software programs along the way.

On her website, Dessie recounts some of the major milestones she’s achieved as it relates to coding in Ethiopia:

  • 2006 – she got her first computer
  • 2011- she presented her projects to government officials at age 11
  • 2013-she co-founded a company, EBAGD, whose goals were to modernize Ethiopia’s education sector by converting Ethiopian textbooks into audio and visual materials for the students.
  • 2014-Dessie started the “codeacademy” of Bahir Dar University and taught in the STEM center at the university.

United States Collaboration

Her impressive accomplishments continue today. More recently, Dessie has teamed up with the “Girls Can Code” initiative—a U.S. Embassy implemented a project that focuses on encouraging girls to study STEM. According to Dessie, “Girls Can Code” will “empower and inspire young girls to increase their performance and pursue STEM education.”

In 2016, Dessie helped train 40 girls from public and governmental schools in Addis Ababa, Ethiopia how to code over the course of nine months. During those nine months, Dessie helped her students develop a number of programs and projects. One major project was a website where students can, according to Dessie, “practice the previous National examinations like SAT prep sites would do.” This allows students to take practice tests “anywhere, anytime.” In 2018, UNESCO expanded a similar project by the same name to include all 10 regions in Ghana, helping to make technology accessible to more Africans than ever before.

With the continuation of programs like “Girls Can Code” and the ambition of young coders everywhere, access to technology will give girls opportunities to participate in STEM, thereby closing the technology gender gap in developing countries. Increased STEM participation will only serve to aid struggling nations in becoming globally competitive by boosting their education systems and helping them become more connected to the world in the 21st century.

– Haley Hiday
Photo: Flickr

Growth in the Dominican Republic

The Dominican Republic, a Caribbean nation of 10.77 million people, shares the island of Hispaniola with Haiti and is primarily known for its beautiful beaches and resorts. With a 13.5 percent youth unemployment rate in the country, these resorts provide necessary jobs, economic stimulation and growth in the Dominican Republic. Despite the recent negative media attention, the growth of resorts shows no sign of stopping. Four new resorts opening in late 2019 and 2020 will continue adding to the burgeoning tourist industry, increasing numbers of workers in the service sector and establish mutually beneficial U.S. and Dominican exchanges.

The Pillar of Tourism

According to the Canadian Trade Commissioner Service, the tourism industry is one of the “four pillars” of the Dominican economy. It forms 7.9 percent of the economy. Growth in the Dominican Republic focuses on projects encouraging tourists to spend more money. There are already 65 such projects approved by the Dominican Republic Ministry of Tourism for 2019.

Speedy development will continue the trend of success in the tourism sector. The Dominican Republic Association for Hotels and Tourism statistics for 2018 displayed a 6.2 percent increase in the sector, which now makes up 20 percent of Caribbean trips. There was also a six percent increase in hotel rooms, and people filled 77 percent of total rooms. Overall, the industry reaped immense revenues of $7.2 billion in 2017. Tourism’s success contributes to GDP growth. The University of Denver predicts $89.54 billion in 2019, and GDP rising to $161.4 billion by 2030.

More Rooms, More Jobs

New resorts will extend the tourism industry’s prosperity by increasing the amount of occupied rooms and the jobs required to service visitors. The World Bank reported that the Dominican labor force was 4,952,136 workers in 2018, up from 3,911,218 only eight years before. Service sector workers made up 61.4 percent in 2017, illustrating the prominent role tourism and related industries play for the growth of the Dominican Republic. Here are four vacation spots heating up employment progress in late 2019 and 2020:

Grand Fiesta Americana Punta Cana Los Corales: This resort, owned by the Mexican Company Posadas, will have 558 rooms and various amenities necessitating more staff. The Director-General of Posadas, José Carlos Azcárraga, expressed hopes that the new resort will aid one of the fastest-growing Caribbean economies. The Dominican president visited the cornerstone to show his support. The resort opens in late 2019.

Hyatt Ziva Cap Cana: This American-owned Playa Hotels and Resorts brand also had a groundbreaking ceremony attended by the Dominican president. There will be 750 rooms requiring staff attention, alongside the various dining and fitness services provided. It opens in November 2019.

Club Med Michès Playa Esmeralda: This newest edition to Club Med’s resort collection will be an eco-friendly environment with four separate “villages” for new employees to manage. In an email to The Borgen Project, Club Med stated it will hire more than 440 Dominicans and help lead vocational training for approximately 1,000 locals to extend the resort’s positive impact. It opens in November 2019.

Dreams Resorts and Spas in El Macao: AMResorts, a subsidiary of the American-owned Apple Leisure Group, will have 500 rooms for the staff to manage. Bars, pools and a litany of eateries will require service sector employees as well. It opens in 2020.

A Vacation for Two

The development of new resorts is mutually beneficial for both the U.S. and the Dominican Republic. The island nation’s tourism is highly dependent on American visitors, who formed 33.85 percent of guests in 2013. The Dominican Embassy reported that individual tourists spent $1,055 on average in the same year. Americans received a pleasant vacation in exchange for growth in the Dominican Republic.

Two of the above resorts are branded by American companies as well. Their earnings not only benefit the Dominican economy but also benefit the American economy. Resort companies are part of a larger exchange where 53 percent of 2017 Dominican trade was with the U.S.. The Canadian Trade Commissioner Service found that the Dominican Republic imported 42 percent of its goods from the U.S. in the same year.

Unfortunately, the four new resorts will not solve all of the Dominican Republic’s problems. Poverty remains high at 30.5 percent, although it has dropped from 41.2 percent in 2013. However, new resorts contribute to this decrease by providing employment opportunities in one of the nation’s most lucrative sectors.

– Sean Galli
Photo: Flickr

What You Need to Know about Fair Trade
Imagine being in the local supermarket, perhaps in the coffee aisle. There is an abundance of options, from decaf to french vanilla and everything in between. Some of the choices have a special seal marked “Fairtrade.” But what does that mean? Here are the facts to know about Fair Trade.

What is Fair Trade?

One fact to know about Fair Trade is the difference between Fair Trade and Fairtrade. Fair Trade is a set of social, economic and environmental standards for companies and the farmers and workers who grow the food millions enjoy each day. Fairtrade, on the other hand, is a trademarked labeling initiative that certifies a product has met the agreed Fair Trade criteria.

For farmers and workers, standards include the protection of workers’ rights and the environment. For companies, they include the payment of the Fairtrade Minimum Price and an additional Fairtrade Premium. This premium can be used to invest in business or community projects of the community’s choice.

How does Fair Trade combat poverty?

The Fair Trade argument is that the poor are being paid less than fair prices for their products in the free market trading system. The Fairtrade foundation states that its goal is to “empower marginalized producers to become economically stable and self-sufficient and to promote sustainable development, gender equality, and environmental protection.”

Offering decent prices for products can help support jobs and improve living conditions for producers, their families and the local businesses they buy from. It can also divert young men from involvement in militias. The intention is that this will ultimately decrease conflict levels in impoverished nations.

While not all poor states are volatile, data indicates that violent conflict contributes to poverty in a number of ways. It can cause damage to infrastructure, break up communities and contribute to increased unemployment and forced displacement of peoples.

Additionally, free trade boosts economic sectors, thereby creating more jobs and a source of stable increased wages. As developed countries move their operations into developing countries, new opportunities open for local workers. An increase in the general standard of living reduces hunger and increases food production. Overall, a higher income makes education more accessible, increases literacy, increases life expectancy and reduces infant mortality rates.

Fair Trade focuses on the exchange between individuals and companies. Fair Trade supply chains utilize direct partnerships that take into account the needs of individual communities. Often times, cross border supply chains strengthen ties between two or more nations. By bringing people together in mutually beneficial trade pacts and policies, Free Trade can contribute to a sense of peace in war-torn areas. Through cultural exchange, there is a rare absence of marginalization in this type of commerce.

What are the disadvantages to know about Fair Trade practices?

Although the Fair Trade movement has good intentions, it also has a few disadvantages.

Fairtrade targets farmers and producers who are financially secure enough to pay certification, inspection and marketing fees, which are necessary to ensure compliance with government regulations. Thus, the poorest farmers who would benefit most from Fairtrade certification are often excluded.

Fairtrade minimum prices and wages ensure fair payment of farmers. However, farmers for non-certified products are left at a considerable disadvantage. When prices fall in the world market, it is the non-Fairtrade certified farmers who suffer. That being said, prices in stores are not monitored by the Fairtrade Foundation. Thus, the producers receive only a small piece of the revenue from retail mark-ups.

Conversely, research conducted by various groups such as CODER, the Natural Resource Institute and Brazilian based BSD Consulting has shown positive impacts of Fair Trade practices around the globe. In Colombia for instance, a 2014 study by CODER assessed the impact of Fairtrade for banana farmers in small producer organizations and workers on plantations. The study concluded that Fairtrade, with the support of other organizations, contributed to a revival of the banana sector in Colombia and increased respect for human and labor rights. Other studies have demonstrated the effectiveness of Fairtrade on worker empowerment in Ecuadorian flower plantations and the benefits of Fairtrade orange juice for Brazilian smallholder farmers.

Here are the facts to know about Fair Trade that can help consumers make informed decisions in their daily lives. Many everyday food items like coffee, chocolate, fruit and nuts offer Fairtrade certified options in local grocery stores. Change is already happening in the Congo where Fairtrade certified gourmet coffee is sourced from war-torn regions. Companies such as Tropical Wholefoods have begun to sell Fairtrade certified dried apricots from northern Pakistan. Just an extra minute in the grocery aisle and a few extra cents to choose Fairtrade can make a big difference.

-GiGi Hogan
Photo: Flickr

East African FederationA proposed federation between Burundi, Kenya, Rwanda, South Sudan, Tanzania, and Uganda seeks to establish a single currency, political unity, modern infrastructure, improved trade relations and ensured peace. In the 1960s, when many of the above countries won their independence, a political federation was first proposed. Today, all six countries are members of the East African Community (EAC), which started in 1999 as a less ambitious form of unity. The East African Federation remains mostly an idea; however, leaders in all six countries are now working together to see the idea come to fruition.

Where it Stands

The countries began drafting a unified constitution in 2018, which would render each member’s individual constitution subordinate to that of the East African Federation. They have set the deadline for its completion to 2021. The EAC has already neared completion of a monetary union, likely being something akin to the European Union’s euro. The euro has allowed for the free movement of capital, stimulating trade activity between member states. Additionally, all six countries are planning to hold a referendum with their own citizens in order to gauge support.

Ambitions

The countries’ leaders say that a federation will lead to economic development and greater African sovereignty. The advantages of the East African Federation include linkages of infrastructure, which will allow four of the landlocked members to have access to the trading ports of Kenya and Tanzania. Further, the East African Federation, due to its enormity, will have more influence in international diplomacy, and its governmental institutions will become more robust through information sharing.

Limitations

When integration efforts were attempted in the past, they became derailed by individual national interests and existing tensions. While the East African Federation attempts to overcome these tensions, some doubt its ability to do so. Critics point to trade disputes between Rwanda and Uganda and military rivalries between Tanzania and Rwanda as prominent examples for why unity will remain unaccomplished.

The Promise

East Africa’s economy is the fastest-growing on the continent; GDP increased by 5.7 percent in 2018 and is forecasted to hit 5.9 percent in 2019. According to the World Bank’s most recent data, the average poverty rate for the 6 countries is 49.6 percent. Kenya has the lowest rate with 36.8 percent, and Burundi has the highest with 71.8 percent. The East African Federation promises to improve cooperation methods and increase economic potential, yielding greater growth, quicker development and lasting stability for the region.

– Kyle Linder
Photo: Flickr

Living Conditions in MauritiusMauritius is a beautiful island nation located in the Indian Ocean, just off the coast of Southern Africa. Long-renowned for its beautiful beaches, Mauritius celebrates a vibrant history and complex mix of cultures. Vestiges of Portuguese, French and British control and long periods of labor migration left clear marks on the current society. Recent decades have been transformative for the country, starting with its independence in 1968. To grasp a better idea about how life evolved on the island, keep reading to learn 10 facts about living conditions in Mauritius.

Top 10 Facts About Living Conditions in Mauritius

  1. Mauritius was once a country with high fertility rates, averaging about 6.2 children per woman in 1963. A drastic decline in fertility rates took place, dropping to only 3.2 children per woman in 1972. This shift comes as a result of higher education levels, later marriages and the use of effective family planning methods for women. This is especially important for the island nation, as space and resources are limited.
  2. Mauritius has no indigenous populations, as years of labor migration and European colonialism created a unique ethnic mix. Two-thirds of the current population is Indo-Mauritian due to a great influx of indentured Indians in the 1800s, who eventually settled permanently on the island. Creole, Sino-Mauritian and Franco-Mauritian make up the remaining one-third of the population. However, it is important to note that Mauritius did not include a question on its national census about ethnicity since 1972.
  3.  The population density in Mauritius is one of the highest in the world, with 40.8 percent of the population living in urban environments. The greatest density is in and around Port Louis, the nation’s capital, with a population of 149,000 people living in the city proper alone.
  4. Close to the entire population of Mauritius has access to an improved drinking water source. In urban populations, 99.9 percent of the population has clean water access. There is a negligible difference in rural populations, with 99.8 percent of people accessing clean water. This is essential for the health and protection of populations from common waterborne diseases, like cholera and dysentery.
  5. In 2012, the government allocated 4.8 percent of its gross domestic product (GDP) to health care. For this reason, an effective public health care system is in place, boasting high medical care standards. The government committed to prevent a user cost at the point of delivery, meaning that quality health care and services are distributed equally throughout the country regardless of socioeconomic status or geographical location.
  6. Non-communicable diseases accounted for 86 percent of the mortality rate in 2012, the most prevalent being cardiovascular diseases. This contrasts with communicable diseases, like measles and hepatitis, which accounted for 8 percent of all mortality in that same year.
  7. Since gaining its independence in 1968, the island’s economy underwent a drastic transformation. The once low-income and agriculture-based economy is now diversified and growing, relying heavily on sugar, tourism and textiles, among other sectors. The GDP is now $13.33 billion. Agriculture accounts for 4 percent, industry 21.8 percent and services 74.1 percent. Government policies focused strongly on stimulating the economy, mainly by modernizing infrastructure and serving as the gateway for investment into the African continent.
  8. Currently, 8 percent of the 1.36 million Mauritian total population is living below the poverty line. Less than 1 percent of the population is living on $1 a day or less, meaning that extreme poverty is close to non-existent. In the hopes to fully eradicate poverty, the government has implemented the Mauritius Marshall Plan Against Poverty which works with poor communities to give greater access to education, health, and social protection measures.
  9. Many environmental issues threaten the island nation, including but not limited to water pollution, soil erosion and endangerment of wildlife. Main sources of water pollution include sewage and agricultural chemicals, while soil erosion is mainly due to deforestation. In the hopes to combat negative outcomes, the government created and published the Mauritius Environment Outlook Report. It recognizes the importance of environmental issues and acknowledges its integral link to the pursuit of sustainable development in the country.
  10. In 2017, the education sector received 5 percent of GDP. Approximately 93.2 percent of the population over the age of 15 can read and write. Gender disparities do exist, as 95.4 percent of males and 91 percent of females are considered literate. Unfortunately, this disparity persists in the job market as well: female unemployment is high and women are commonly overlooked for positions in upper-tier jobs.

The island continues to prioritize health, education and boosting its economy, all of which are essential for the improvement of living conditions in Mauritius. With positive momentum building since its independence in the 1960s, the country propelled itself into a stable and productive future.

Natalie Abdou
Photo: Pixabay

Worker Remittances and Poverty in the Arab World
The Arab world has one of the highest proportions of migrant to local workers in the world, with over 32 million migrant workers in the Arab states in 2015 alone. In addition, the region has one of the largest diasporas in the world. This means that many skilled workers are emigrating to wealthier countries and sending money home via remittances. But what do remittances in the Arab World mean for the region and its inhabitants?

Brain Drain vs. Gain

In Lebanon and Jordan, unskilled labor is provided by growing numbers of refugees and foreign workers, totaling over five million in 2015. However, as more foreign workers enter the country, growing numbers of high-skilled Lebanese and Jordanian nationals are emigrating. This often occurs when opportunities are limited, when unemployment is high and economic growth slows. The phenomenon is dubbed ‘brain drain’ as opposed to ‘brain gain’, whereby an increasing stock of human capital boosts economies. A drain occurs while poor countries lose their most high-skilled workers and wealthier countries in turn gain these educated professionals.

Remittances in the Arab World

These expatriates commonly work to improve their own living situations while also helping to support their friends and families. This is where remittances come into play. As defined by the Migration Data Portal, remittances are financial or in-kind transfers made by migrants to friends and relatives in their communities of origin. Remittances often exceed official development aid.  They are also frequently more effective in alleviating poverty. In 2014 alone, the Arab states remitted more than $109 billion, largely from the United States followed by Saudi Arabia and the United Arab Emirates.

There is no denying that remittances can be a strong driving force for the socioeconomic stability of many Arab countries. But not all the influences are positive. Some experts argue that remittances can actually hurt the development of recipient countries. Their arguments cite potential negative effects of labor mobility and over-reliance on remittances. They emphasize that this can create dependency which undermines recipients’ incentive to find work. All this means an overall slowing of economic growth and a perpetuation of current socioeconomic status.

The Force of the Diaspora

The link between remittances in the Arab world and poverty is clear. Brain drain perpetuates and high amounts of remittance inflow and outflow persist if living conditions remain unchanged. Policymakers are therefore focusing efforts on enticing emigrants to return to their countries of origin. By strengthening ties with migrant networks, and implementing strategies like entrepreneurial start-up incentives and talent plans, the initial negative effects of brain drain could be curbed.

Overall, though brain drain and remittances can seem to hurt development in the short-term, if policies can draw high-skilled workers back, contributions to long-term economic development can erase these negative aspects altogether. Young populations that have emigrated to more developed countries acquire education and valuable experience that is essential to promote entrepreneurship in their home countries. Moreover, their experiences in advanced democracies can bolster their contribution to improved governance in their countries of origin. The Arab world’s greatest untapped potential is its diaspora, and it could be the key to a more prosperous future, if only it can be harnessed.

Natalie Marie Abdou
Photo: Flickr

New Industries UgandaThe Ugandan government recently announced the decision to draft a new national policy that will aid the country’s economic growth and assist in the creation of new industries in Uganda. Such development could draw more investment into the country and bolster the nation as a whole, and the silk industry might be the best way to achieve economic prosperity.

A New National Industrial Policy

In 2008, Uganda’s parliament passed the National Industrial Policy to combat the country’s slow economic growth. The policy was highly anticipated as it aimed to transform the structure of the country as a whole rather than just one specific industry. The National Industrial Policy was not only meant to lead to the creation of new industries in Uganda but it also to lead to the cooperation of the state by providing a plan of action.

Fast forward 10 years and many Ugandan citizens are disappointed with the policy’s impact. By 2018, only 30 percent of the policy has been realized. The main reason for this underachievement is the fact that the policy was not properly implemented. The plan and prediction were that GDP in Uganda would grow to 30 percent, but between 2008 and 2017, it only grew by 18.5 percent. The new policy seeks to rectify this situation by making investment easier, increasing funding to the industrial sector and strengthening existing laws that help industrial development.

Focus on Industrialization

Many economists and politicians believe that industrialization is a key component in lifting countries out of poverty and into a modern, industrial economy. The far-reaching goal of industrialization is to change the system, and such widespread aims can help lead to nationwide development.

One aim of the new industrial policy is the silk industry. Due to the high demand for silk, Uganda is looking to farm silkworms in a process called sericulture to produce more silk. Many hope to expand the silk industry through this new policy. China and India are the ultimate silk producers at this moment, but both are currently experiencing declines. Estimates state that Uganda could make almost $94 million and create up to 50,000 jobs every year in the silk industry; time will tell if such potential can be realized.

The Ugandan government is set to put in about $102 million into this endeavor over the course of five years with the hopes of making about $340 million. While the new national policy seeks the creation of new industries in Uganda, the silk industry has existed in the country before and had been implemented in the 2008 National Industrial Policy. Uganda has grown and produced silk since the 1920s and had had silkworm farms up until the late 1990s. Now, the nation seeks to revitalize the product and its process.

What’s Next?

While this new national policy has yet to be implemented in the Ugandan government, there is still the hope that this policy will create more domestic growth within the nation. It is necessary to wait and see the effects of the policy since the same problems that the 2008 policy faced could still exist. The effects are unknown, but now there is hope that the creation of new industries in Uganda is the start that the country needs.

Isabella Niemeyer
Photo: Flickr

sustainable agriculture in ghana
Ghana is a small country located in West Africa along the Guinea Bay. The country is rich in natural resources, especially oil and gold, but nearly 45 percent of the country’s population is employed in the agricultural sector and agriculture makes up 18 percent of Ghana’s gross domestic product (GDP).

Coca, rice, cassava, peanuts, and bananas are some of the top agricultural products grown in Ghana. Coca is one of the country’s popular exports, alongside oil, gold and timber. Despite being resource-rich, Ghana’s economy has been contracting. Its current growth is around negative 6 percent. Countries and organizations around the world, alongside Ghana’s government and people, have recognized this problem and are currently promoting sustainable agriculture in Ghana so that they can carve a brighter future for this recovering African nation.

Feed the Future Program

The United States Agency for International Development (USAID) has chosen Ghana, specifically Northern Ghana, as one of its focus nations for its Feed the Future Program. USAID reports that the majority of farmers in this part of the country own small farms that are often less than five acres. Much of this land is covered in pour soil. Due to climate change and the inherent climate of the region, rain is unpredictable.

These challenges mean that malnutrition is high amongst the population. USAID’s Feed the Future Program aims to increase the productivity of these farms that mainly produce corn, rice and soybeans and promote sustainable agriculture in Ghana. Since 2012, Feed the Future has helped supply 156 thousand producers with better farming equipment and educate them on sustainable farming techniques. These techniques have led to the alleviation of some of the malnutrition and poverty issues. They also earned the farmers a total of $40 million and $16 million in private investment.

Governments Role in Sustainable Agriculture in Ghana

This private investment is important to the government’s idea for the future of sustainable agriculture in Ghana. The Ghanaian Times reports that the government of Ghana recognizes the United Nation’s latest report about the future of food security. The government wants to do its part on the world stage and at home by promoting sustainable agriculture in Ghana.

Ghana’s Shared Growth and Development Agenda mention a few ways in which the country plans to do this. The government works with organizations such as the USAID and many programs based in Africa, such as the Comprehensive Africa Agriculture Development Program. Sustainable agriculture in Ghana is seen as a way to strengthen food security, alleviate poverty in the country and promote private sector growth.

Trax Ghana

Trax Ghana is a small nongovernmental organization that promotes sustainable agriculture in Ghana for all of the reasons mentioned above. Like the USAID Feed the Future Program, Trax Ghana operates mainly in Northern Ghana. It promotes the nitty-gritty of sustainable agriculture. It teaches farmers about the importance of soil management and how to construct proper animal pens. The organization also promote gender equality, teach business skills and farming skills to both women and men for over 25 years, since the organization was founded.

Attacking the issue of poverty from multiple fronts and with multiple allies, the future of sustainable agriculture in Ghana looks bright. Ghana’s government is in collaboration with USAID to set up the Ghana Comprehensive Agriculture Project to increase private sector investment into the agriculture sector. It will take time and there will probably be some setbacks, but with so many people dedicated the practicing and promoting the practice of sustainable agriculture, the country has a good chance of succeeding.

– Nicholas DeMarco

Photo: Flickr