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Top 5 Fastest Developing CountriesThe world economy is changing every day due to trade investments, inflation and rising economies making a greater impact than ever before. Improvements in these economies have been due to significant government reforms within these countries as well as the administration of international aid through financial and infrastructural efforts. These are the top five fastest developing countries in no particular order.

Top Five Fastest Developing Countries

  1. Argentina. Contrary to popular belief, Argentina is actually considered a developing country. Argentina’s economy was strong enough to ensure its citizens a good quality of life during the first part of the 20th century. However, in the 1990s, political upheaval caused substantial problems in its economy, resulting in an inflation rate that reached 2,000 percent. Fortunately, Argentina is gradually regaining its economic strength. Its GDP per capita just exceeds the $12,000 figure that most economists consider the minimum for developed countries. This makes Argentina one of the strongest countries in South America.
  2. Guyana. Experts have said that Guyana has one of the fastest-growing economies in the world. It had a GDP of $3.63 billion and a growth rate of 4.1 percent in 2018. If all goes according to plan, Guyana’s economy has the potential to grow up to 33.5 percent and 22.9 percent in 2020 and 2021. Its abundance in natural resources such as gold, sugar and rice are among the top leading exports worldwide. Experts also project that Guyana will become one of the world’s largest per-capita oil producers by 2025.
  3. India. As the second most populated country in the world, India has run into many problems involving poverty, overcrowding and a lack of access to appropriate medical care. Despite this, India has a large well-skilled workforce that has contributed to its fast-growing and largely diverse economy. India has a GDP rate of $2.7 trillion and a $7,859 GDP per capita rate.
  4. Brazil. Brazil is currently working its way out of one of the worst economic recessions in its history. As a result, its GDP growth has increased by 1 percent and its inflation rate has decreased to 2.9 percent. As Latin America’s largest economy, these GDP improvements have had a significant impact on pulling Latin America out of its economic difficulties. Additionally, investors have also become increasingly interested in investing in exchange-traded funds and large successful companies such as Petrobras, a large oil company in Brazil.
  5. China. Since China began reforming its economy in 1978, its GDP has had an average growth of almost 10 percent a year. Despite the fact that it is the world’s second-largest economy, China’s per capita income is relatively low compared to other high-income countries. About 373 million Chinese still live below the upper-middle-income poverty line. Overall, China is a growing influence on the world due to its successes in trade, investment and innovative business ventures.

This list of the five fastest developing countries sheds some light on the accomplishments of these nations as they build. As time progresses, many of these countries may change in status.

Lucia Elmi
Photo: Wikimedia

Supporting Entrepreneurs in Developing CountriesFrom 2002 to 2012, the World Bank invested around 9 billion dollars in skills training programs for aspiring entrepreneurs in developing countries. The hope was to counteract the shortage of schools worldwide. However, because these programs suffered from low participation and high dropout rates, they seldom lasted long enough to make any real impact. After doing a cost and benefits analysis of these programs, the World Bank found that they were not successful in increasing participant income. Consequently, the World Bank has started to withdraw its support from these programs, citing that there are several problems with the initiatives.

With the failure of such programs, aspiring entrepreneurs in developing countries need a more efficient system to support them. Currently, more than two billion workers in these countries are unable to meet the requirements of possible employers, including necessary literacy skills. There are now about 420 million incapable workers below the age of 25. As a country’s economy evolves, locals need to adapt to changing needs. However, an overwhelming amount of people do not have the skill sets to do so.

Possible Solutions

One solution to this problem has been introducing programs that cultivate entrepreneurship in Africa’s youth and women. There have been several programs already instituted to work towards this goal, including the Pan-African Youth Entrepreneur Development (paid), BeniBiz, Apoio e Geração e Incremento de Renda (AGIR), Impulsa Tu Empresa 2.0 (ITE 2.0) and Crece Tu Empresa (CRECE). 

These programs offer content and training in creating and maintaining businesses. They also offer lessons on accounting, management and finance. Some cater to individuals, while others cater to business owners. Graduation programs, which are now in the works, also intend to provide entrepreneurship learning services for lower prices. Overall, there are many options for aspiring entrepreneurs in developing countries. Two programs that especially stand out are the Start and Improve Your Business (SIYB) graduation program and Business Lab Africa (BLA).

Start and Improve Your Business (SIYB)

The International Labor Organization created Start and Improve Your Business (SIYB) in 1977. It offers vocational training that has shown concrete results. People can use the locally relevant knowledge they gain from this program to work jobs that are in-demand and make a living for themselves and their families. The program also offers business management training. It teaches skills in accounting, finance, creating and maintaining business and management practices. Thus far, this program has more than 15 million users and is still growing. 

SIYB has been able to change the lives of many of its users. In 2011, the program conducted a SIYB Global Tracer Study that examined the effects of the program on users’ lives. About one-third of users who had no prior experience in business before receiving SIYB training were able to generate an average of three new jobs following its curriculum. SIYB is continuing to update its technology. In fact, a new version of its web-based monitoring platform (SIYB Gateway) is expected to launch in 2020.

Business Lab Africa (BLA)

The Business Lab Africa program (BLA) works to help African entrepreneurs succeed in business areas. The program itself is subscription-based and provides quality entrepreneurship training at inexpensive price points. This makes it easily accessible to entrepreneurs in developing countries. The program’s services can be accessed via mobile or web.

BLA “offers practical, qualitative and locally relevant” knowledge around marketing, sales, global expansion, business structure, processes and business models. Teachers in this program are distinguished business experts who teach relevant skills that entrepreneurs in developing countries can use to support themselves. Thus far, it has trained more than one million entrepreneurs both online and in person. By 2022, BLA estimates that its user base will increase to at least 100,000 people.

These programs are generally tailored to fit the needs of underprivileged individuals, offering both asset transfer and training. Additionally, they do not require repayment of initial grants, which would usually create an insurmountable barrier to student success and self-sustainability. With these programs, people living in underdeveloped countries will have the opportunity to access the educational tools needed to succeed despite staggering economic situations. 

Nyssa Jordan
Photo: Flickr

Studying Human Behavior Can Help Eradicate Malaria

Bed nets. Insecticide. Preventative medicine. These are the tools that are most known for fighting malaria—and for good reason. Tactics like these have saved millions of lives. However, when a country manages to eliminate most incidences of malaria, the traditional techniques lose their impact. One group of researchers, realizing the need for new strategies against malaria, decided to not focus on mosquitoes (the traditional tactic) but on humans themselves. Ultimately, studying human behavior can help eradicate malaria by targeting weak spots in preventative plans and providing a clearer implementation of resources. To better understand malaria, its far-reaching impacts and the importance of a new human-centered technique, it is helpful to start from the beginning.

What is Malaria and How Was it Treated in the Past?

Malaria has plagued humans for, quite literally, as long as humanity remembers. The earliest written records  — Mesopotamian cuneiform tablets — describe symptoms characteristic of the disease. Scientists found human remains dating back to 3200 BC with malaria antigens. Ancient scholars called the illness the “king of diseases.” It certainly lives up to the title. It is thousands of years old and it has killed hundreds of millions of people.

Anopheles mosquitoes, most active at dusk and night-time, are responsible for the malaria parasite’s spread. Carried in the insect’s stomach, the parasite enters the human bloodstream through the mosquitoes’ saliva (the same substance that makes bites itch and swell) as they feed.

Humans first exhibit symptoms a week or so after infection. If untreated, the disease quickly becomes serious. Sufferers feel flu-like symptoms, including body aches, fatigue, vomiting and diarrhea. Patients can die within 48 hours after they first exhibit symptoms.

In 1820, chemists developed quinine, the first modern pharmacological treatment for malaria. In the 1900s, the men who identified the malaria parasite, demonstrated that mosquitoes were responsible for transmission and developed the mosquito-repelling insecticide DDT all won Nobel Prizes for their respective discoveries. Understanding and preventing malaria were matters of great international importance.

What is Malaria’s Global Presence Today?

Fighting this disease remains a top global priority. Modern preventative measures now include insecticide-treated bed nets (to keeps the nocturnal malaria-carrying mosquitos away) and indoor sprays. Children in high-transmission areas are also eligible for seasonal malaria chemoprevention. Thanks to a surge in global humanitarian attention, the disease’s presence has fallen worldwide. Between 2010 and 2017, malaria incidence decreased by nearly 20 percent and fatalities decreased by nearly 30 percent.

However, the World Health Organization (WHO) estimates that 216 million clinical cases still occurred worldwide in 2016 alone, resulting in 445,000 deaths. The disease causes a massive drain on economies, due to healthcare costs and loss of workforce efficiency. In sub-Saharan Africa, where potent strains of the parasite thrive, those damaging effects are especially notable. Malaria and its effects cost Africa a stunning $12 billion every year and, because people living near unclean water sources and insecure housing are most at risk, malaria disproportionally affects the impoverished. By prohibiting individuals from attending work or school, let alone its potential to kill, malaria perpetuates the cycle of poverty. While reducing prevalence is a key factor, eradication continues to be the ultimate goal. That means the end to malaria’s ill-effects on communities, particularly impoverished ones.

How Studying Human Behavior Can Help Eradicate Malaria

When regions successfully employ traditional tactics, as many have, they find themselves with a new problem. “Lingering cases” is a term used to describe when a region no longer experiences outbreaks, but that the disease still exists locally. In general, eliminating any illness gets harder the fewer instances of it that occur. Tracking the carrier mosquitoes is infeasible, if not impossible. However, researchers in Zanzibar took a new approach – they decided to track humans instead.

In July 2019, the Johns Hopkins Center for Communication Programs published an article in Malaria Journal that details the reasoning behind the new technique. While indoor measures work, people are not necessarily confined to the home at nighttime. One Zanzibari woman remarked in an interview, “When you are outside, you can’t really wear the bed nets, can you?” Existing steps against malaria are not effective outdoors, which makes it nearly impossible to eliminate the last few cases.

Researchers conducted over 60 in-depth interviews and studied routine human movements: between homes, stores, public spaces, religious services and even special events, like weddings. They found many insights. For example, men were at the highest risk for infection because they most often work or socialize outside after dark. There is also a notable population of seasonal workers that come to Zanzibar from Tanzania’s mainland. These individuals rarely own mosquito nets nor insecticides to spray their residences. Better understanding the movements of people vulnerable to malaria, as well as those that find themselves periodically unprotected, is important. That information allows scientists to create better-targeted interventions, including community support programs, outdoor areas with preventative measures, and basic indoor resources for those without.

Small scale use of these techniques has proven effective, and the researchers behind this investigation believe they could be scaled up successfully. Best of all, 26 other countries have similarly low rates of malaria incidence. If Zanzibar, a high-transmission area for the parasite, could push back against this disease so successfully, other countries could benefit greatly from the same changes.

Conclusion

Malaria, a disease that has lasted for around 5000 years, has never been closer to eradication. The last century has seen a great surge in momentum for fighting this illness. The results are stunning; millions of lives saved, several countries eliminated the disease entirely, and dozens more are nearing that goal. In turn, people have prospered. For every dollar invested in African malaria control, the continent sees 40 dollars in economic growth. Much of that prosperity goes back to impoverished people, who can thrive with less illness and more economic efficiency. Now, researchers are pursuing the “last mile” strategies. Studying human behavior can help eradicate malaria by preventing remote cases. Total eradication and the end of malaria’s drain on the impoverished has never been closer.

– Molly Power
Photo: Wikimedia

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

Credit Access in Bulgaria
Bulgaria is an Eastern European country with a population of approximately 7 million people. In 2016, the country’s poverty rate stood at 23.4 percent, which means that around 1.6 million Bulgarians lived below the national poverty line. In addition, Bulgaria has the lowest GDP per capita in the European Union and the highest levels of income inequality among E.U. countries. Increasing credit access in Bulgaria could be one way to recharge the economy and help reduce poverty.

Background

Poverty in the country has been steadily rising. Since 2000, the poverty rate has increased by 9.4 percent. Contradictorily, the unemployment rate has never been lower and wages have never been higher than they are now. To explain this contradiction, it is important to know that Bulgaria has experienced a rapid population decline. Between 1988 and 2018, the population of Bulgaria declined by nearly 2 million people. By 2050, economists predict that the Bulgarian population will fall to 5.5 million if the country does nothing to reverse the trend. This has precarious implications for the nation’s economy, and increasing access to credit is a viable solution to stymie population loss.

Particularly concerning is the fact that young and educated Bulgarians constitute the bulk of those leaving the country. In most cases, they leave to find employment elsewhere in the E.U. Some dubbed this phenomenon a “brain drain,” and studies confirm that it hinders economic growth and development. Experts at the Institute for Market Economics in Bulgaria argue that political stability and economic growth are the surest ways to dissuade young people from leaving the country; in other words, the overall outlook for the country must be bright.

Credit Access in Bulgaria

One possible way to address Bulgaria’s population problem is to increase access to credit. With increased credit access, impoverished Bulgarians can secure the funding they need to start a business, purchase a home or own a car. Expanding credit for small businesses could be due to economic growth. Furthermore, a 2006 study found that increased credit access in Bulgaria had a strong correlation with total factor productivity. Credit access has also led to growth in both the manufacturing and service sectors. A Georgia State University study found that access has led to a 0.34 percent annual increase in value for both sectors. These sectors account for 83 percent of Bulgaria’s GDP.

By further developing access to credit, Bulgaria has a brighter economic outlook. Despite its population decline, the GDP has increased by $52 billion since 2000. In order to reverse the brain drain and address national poverty, financial institutions and the Bulgarian government should continue to invest in credit access. Credit access will allow young entrepreneurs to remain in the country, helping the economy grow and encouraging Bulgarians. Economic growth, according to the Institute for Market Economics, remains Bulgaria’s best chance at recovering its lost population.

– Kyle Linder
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