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Tag Archive for: Economic Growth

Information and news about economic growth

Posts

Global Poverty

Sustainable Agriculture in Suriname Working to Improve Yields

Sustainable Agriculture in SurinameThe sector for sustainable agriculture in Suriname is uniquely poised to take advantage of a highly valuable market, eschewing new and higher value organic crops while intensifying the long-held tradition of rice farming. In 2012, agriculture constituted only 9 percent of Suriname’s GDP, decreasing from 15 percent in the 1990s.

The country’s most important crops, rice and bananas, have become nearly stagnant in terms of yield and are facing major overseas competition, causing high export and transportation costs. Rice, as the essential backbone of sustainable agriculture in Suriname, is a focus of the Anne van Dijk Rice Research Institute (ADRON). In addition to rice production, sustainable agriculture in Suriname can increase its value significantly by developing a framework for organic farms.

Rice Production

Through ADRON, the Ministry of Agriculture developed a system for intensifying rice production, increasing it from 4.1 to 4.7 tons per hectare at one point. However, ADRON’s research on seed breeding and crop productivity only got them so far. Small farmers lack proper education and knowledge of the most effective rice production practices, resulting in only 400 hectares of rice being planted in 2007, as opposed to the expected 1000 hectares.

ADRON has since supported the Seed Growers Association, an extension program for the support of small farmers and providing them with the technology they need to create sustainable agriculture in Suriname. According to the International Institute for Sustainability, world rice production must increase 50 percent by 2025 to accommodate average consumption per capita. Since 2009, rice production has shown an upward trend of above 200,000 tons per year, but ADRON is looking to push it even further with the following programs:

  • Plant breeding program: breeding a seed with higher yields and better quality when cooked that will flower at a specific time after it is planted.
  • Crop management program: researching the potential results of planting rice at higher elevations, as well as soil, weed and pest management.
  • Post-harvest processing program: optimizing waste management and researching the cooking quality of different rice varieties.
  • Technology transfer program: reaching out to farmers and farmer field schools through mass media.
  • Rice seed production program: transferring rice produced in Suriname to a separate agency for continued research.

These five ADRON programs will provide the education and technology necessary for the expansion of rice production, as well as an assurance of rice quality that will survive rising competition in the world market.

Organic Farming

Organic farming has become a worldwide trend and highly dynamic market, particularly in Europe, and Suriname is going along with the trend. The Suriname Business Development Center and the United Nations Development Programme (UNDP) have funded multiple projects for boosting organic farming and sustainable agriculture in Suriname. With funding from the Global Environment Facility (GEF), UNDP created the GEF Small Grants Programme, allowing Suriname to begin instituting projects involving biodiversity, sustainable land management and non-timber forest products.

Institutions like the Centre for Agricultural Research provide a gateway to the national market for organic food, creating initiatives to capture national interest. Safe farming, an environmentally friendly initiative for the small-holder farmers, is one of many that uses fewer chemicals in their crops.

Sustainable agriculture in Suriname has become a nationwide focus, with support from the government, research institutions and local farmers. They have the means to succeed and they are taking advantage of it.

– Kayla Rafkin

Photo: Flickr

February 19, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-19 01:30:462024-05-29 22:39:24Sustainable Agriculture in Suriname Working to Improve Yields
Global Poverty

Credit Access in El Salvador Growing Among Rural Population

Credit Access in El SalvadorThe country of El Salvador is known for being the smallest and most densely populated country in Latin America. It has the twelfth-highest GDP in the Americas. A large portion of its economic growth comes from remittances.

Meanwhile, agriculture, which had fallen off in the 1990s, continues to play an important role in the economy as it employs 25 percent of the country’s labor force. Coffee and sugar, El Salvador’s main exports, account for a significant portion of the agricultural sector. But despite its comfortably high GDP, 32.7 percent of its citizens live in poverty.

A significant obstacle to alleviating poverty is limited credit access in El Salvador. In particular, while banking is common and easy to obtain in larger cities like San Salvador and Santa Ana, the poor, especially in rural areas, have the most difficulty. Of the 40 percent of the population with low income, only 6 percent have accounts at financial institutions. And while access has grown, most banks do not have branches outside of the major cities.

To combat this, in 2013 the World Bank funded and developed a program that, through technical assistance, supported the Salvadoran authorities in developing legal frameworks and financial services. The World Bank team provided a framework for financial correspondents (third parties such as grocery stores and pharmacies) that authorized them to provide basic financial services. As well, the World Bank provided feedback on models of regulation for mobile banking and electronic banking.

Through these efforts, the World Bank was able to legally enact a framework that allowed for those third-party groups to carry out basic financial services. And between December 2013 and May 2014, basic banking transactions through third parties totaled nearly US $45 million. By utilizing technical channels outside of banks themselves, the World Bank has been able to provide credit access in El Salvador for all its citizens.

And in 2010, the International Finance Corporation, which is a part of the World Bank, financed a $30 million project specifically for micro-financing. Based on remittance flow, which accounts for more than $2.8 billion of El Salvador’s GDP, this project will establish a new funding platform for Fedecredito, a cooperative of 55 El Salvador credit unions and banks. Through support from the World Bank, which will grow Fedecredito’s portfolio by up to 25 percent, Fedecredito hopes to use this new structure to give credit to over 30,000 micro-entrepreneurs.

Through these programs, credit access in El Salvador has improved, especially for the rural poor. As these projects continue and El Salvador gains more stability, hopefully, their citizens will have more economic freedom.

– Nick McGuire

Photo: Flickr

February 18, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-18 07:30:472019-11-07 03:39:09Credit Access in El Salvador Growing Among Rural Population
Global Poverty

Sustainable Agriculture in Uzbekistan Addressing Mistakes of the Past

sustainable agriculture in UzbekistanUzbekistan is the most populous nation in central Asia, with over 32 million citizens. It is a landlocked country with little precipitation (3.9 to 7.9 inches annually), but its landscape includes two rivers and the salty Aral Sea. Despite the dry area’s water sources, decades of misuse of the rivers and sea have led to degraded land and Uzbekistan’s high reliance on exported crops like cotton. A new generation of citizens now counters the mistakes of its predecessors as they strive toward sustainable agriculture in Uzbekistan.

Cotton – Profit Over Environment

Uzbeki leadership employed poor practices, originally implemented by Soviet leadership in the 1950s, to cultivate the cotton crop through large-scale chemical use, inefficient irrigation systems and poor drainage systems. Each variable contributed to soil degradation and high soil salinity (salt content of the soil).

The higher the soil’s salinity, the harder plants must work to absorb water. Even if the soil is at proper saturation, if the salt content is high enough, plants will wilt or even die from the high expense of energy. The process of diverting water from the Amu Darya and Syr Darya rivers that fed the Aral Sea led to the desertification of what was once the fourth largest saline lake in the world. The extremely high concentration of salt in the small body of water left behind affects the soil of its boundaries with a high level of salinity.

The sea is now less than 10 percent of its former size and the eastern basin, which dried up completely, is now known as the Aralkum Desert.

“Modern Slavery”

Further, Uzbekistan employed even poorer labor practices. The cotton industry saw state workers directed away from their occupations during harvest season and out to the fields picking cotton. The practice met the definition of “modern slavery” as outlined by the Global Slavery Index, as the workers received little to no compensation for their extra work and were under the alleged threat of expulsion from their state jobs if they did not participate in the harvest.

Labor and agricultural policies were enforced under the leadership of President Islam Karimov, elected in 1991 after Uzbekistan declared independence from the Soviet Union. Shavkat Mirziyoyev became the nation’s second president in 2016 following the death of Karimov. Mirziyoyev has since publicly denounced the traditional labor practice and initiated reforms across the labor and agriculture sectors.

Time for Crop Diversification

A 2013 study on the possible outcomes of developing land for crops besides cotton found a high potential for more efficient water use, as well as farm income for the area’s dryland citizens. The multiyear study indicated that crop diversification would also assist farmers in wetland areas that will be affected by the climate-driven decline water availability. The article concluded that crop diversification was key to sustainable agriculture in Uzbekistan.

That same year, the World Bank financed the Sustainable Agriculture and Climate Change Mitigation project. The project objectives are to introduce renewable energy and technology for energy efficiency to the agriculture (agribusiness and farms) sector, and to improve the degraded irrigated land and water conservation practices.

The project looks to secure the objectives by implementing three components:

  • Promotion of renewable energy technologies, especially by supporting the circulation of knowledge and information through training and goods
  • Promotion of best practices and technology to mitigate the irrigated land degradation
  • Advisory services and project management

Horticulture Development

In 2014, the Horticulture Development Project initiated the shift in focus from heavily relied-upon exports like cotton to sustainable agriculture in Uzbekistan. By growing its own fruits and vegetables, the nation will realize growth in sector-crossing agribusiness and through its more diverse economy.

The project’s three main components include agricultural support services, access to credit and project management. The World Bank partners with the International Finance Corporation for the project to develop solutions to implementing food safety practices, improving competitiveness, agricultural lending and understanding the supply chain.

Uzbekistan must overcome the inheritance of neglectful policies, rising above the mandates of 1950s Soviet Russia and the heavy-handed culture of the Kamirov-led 1990s and 2000s. Through aid and the drive to emerge victorious, Uzbeki will citizens create sustainable agriculture on their way to creating a fully sustainable nation.

– Jaymie Greenway

Photo: Flickr

February 18, 2018
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Global Poverty

Infrastructure in Malawi

infrastructure in MalawiMalawians have faced many obstacles to the growth and development of their country. Malawi has struggled with successful infrastructure development due to economic and natural disasters and currently has plans in effect to reduce poverty and increase urbanization for its people. Because of its rapid population growth, urbanization and infrastructure in Malawi are crucial for the nation’s survival and success.

Scandal

Malawi’s poverty rate has barely changed from 2010 to 2016, falling from 70.9 percent to 69.6 percent. In 2014, Malawi faced an economic scandal known as “cashgate” in which government officials were laundering millions from government reserves. The cashgate scandal caused many donors to withdraw their funding, which resulted in more detriment to the nation because 40 percent of Malawi’s wealth comes from independent donors. While it was very publicized, it was not the first time donors withdrew from the Malawian government due to the corruption within it. This kind of scandal has affected Malawians, as well as infrastructure in Malawi.

Flood Crisis

Infrastructure in Malawi faced a large-scale flood in January 2016 which severely impacted the country’s development. The widespread flood wiped out several villages and much of the country’s agriculture. This has left Malawi in the largest food crisis in a decade. With a significant amount of damage to the country’s people and agriculture (part of country’s economic gains), the economy in Malawi has struggled to prioritize infrastructure development. Many solutions included providing short-term shelter for Malawians who had suffered from the disaster.

 

Non-Agricultural Development

While efforts to reboot the economy and its agricultural efforts continue, Malawi cannot keep up with its steady population growth. Due to the increasing population, farms are shrinking and limiting economic productivity. As agricultural jobs decrease, infrastructure in Malawi leans toward the creation of non-agricultural jobs in education, finance, and energy. Malawi currently uses hydro-power, and due to climate change and sporadic rain, the country often experiences water shortages and blackouts. Creating more infrastructure, especially providing additional resources for electricity, will benefit Malawi and increase the economy. The plans to develop in the non-agricultural sector will speed up the urbanization process for Malawians.

 

MGDS

The creation of jobs encourages the creation of infrastructure and vice versa. To combat the nation’s poverty, The Malawi Growth and Development Strategy (MGDS) was created in 2006. The goal of the MGDS is to encourage continued economic growth and infrastructure in Malawi. The MGDS is meant to create long-term jobs for Malawians in mining, trade, and tourism and culture. Another goal is to encourage the use of the environment and natural resources. Utilization of Malawi’s culture and wildlife will increase tourism to create more economic growth. Creating jobs within Malawi’s government, such as in the health and safety sectors, will also provide more growth for the nation’s economy and help the people of Malawi to overcome poverty. In addition to practical job creation and tourism growth, the MGDS will consist of urban improvements such as in airports, more media/telecommunications sources, and housing developments.

While the recent history of Malawi has not been hopeful, the country’s prospects predict a brighter tomorrow for Malawians.

– Courtney Hambrecht

Photo: Flickr

February 17, 2018
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Global Poverty

Sustainable Agriculture in Turkey

Sustainable Agriculture in TurkeyBetween Europe and the Asian continent is the Republic of Turkey, therefore, it is considered an intercontinental country. Two seas surround the territory: the Black Sea in the north and the Mediterranean Sea in the south. Climate varies depending on the part of the territory. Cities near the coast have a Mediterranean climate that is warm, humid and ideal for agricultural purposes. Turkey’s economy grew based on agricultural sector activity. Now, such a sector is not the primary economic source for the country anymore and the need for sustainable agriculture in Turkey arises.

 

Barriers to Sustainable Agriculture in Turkey

Up to 20 percent of the Turkish population still works cultivating the land. Nowadays, up to 50 percent of the land is used for agricultural purposes. Regardless, the government has yet to take a step forward towards sustainable agriculture in Turkey.

Pesticides, fertilizers and soil erosion of the arable land, are the three main issues within the agricultural sector. Extreme drought is a fourth, but lesser issue in the Eurasian country. “Anatolian plateau” is the name given to the central part of the Turkish region that suffers most droughts due to its geographical positioning.

The interior part of the territory suffers from a dryer climate. Such conditions can have a significantly prejudicial impact on the arable land and rural economy in its entirety. This is taking a toll by making it a challenge to keep sustainable agriculture as an ongoing achievable goal.

The following affect sustainable agriculture in Turkey:

  • a rapid population growth
  • a loss of arable land due to extreme droughts
  • and the recurrent use of degraded land.

These augment the pollution levels in the water, the emission of greenhouse gases, and the loss of organic matter within the soil.

 

Recent Increase in Sustainable Agriculture

Even though multiple issues have emerged, sustainable agriculture in Turkey has increased over the past two years. The use of mineral fertilizers and pesticides has gone up, thus helping sustainability within the rural economic sector.

The agricultural sector is now undergoing a series of initiatives that will hopefully further increase sustainable agriculture in Turkey during the next few years. The Turkish government has provided training in order to create awareness on sustainable agriculture as well as spread new rural techniques that can help farmers with productivity. Sustainable agriculture in Turkey has already been improved, and during the next decades will have an even better and bigger impact that will benefit productivity, the soil, and the Turkish population.

– Paula Gibson

Photo: Flickr

February 17, 2018
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Global Poverty

Credit Access in Sri Lanka

Credit Access in Sri LankaSri Lanka and its citizens can benefit greatly from credit access. As an island country in South Asia of many languages and ethnicities, it has, of course, been a product of dispute for many years. A democratic republic, political unrest and ethnic divide have been a main source of disarray as noted by its thirty-year civil war which ended in 2009. But besides political issues, Sri Lanka is an economically stable country in South Asia, with a high Human Development Index rating and a per capita income that ranks highest among South Asian countries. Its main economic sectors are tourism, textiles, rice products, and tea, of which it is the second-largest exporter in the world. Similar to most countries, however, while there is certainly stability, Sri Lanka does have its issues.

Sri Lanka still has a large number of citizens who live in poverty. While only 1.8 percent of Sri Lankans live in abject poverty, nearly 45 percent live on $5 or less a day. It is difficult to maintain a stable income, especially in rural areas. It is even more difficult to achieve personal growth when income covers expenses and there is little left over.

Credit Access in Sri Lanka

That’s why credit access in Sri Lanka, especially in rural communities, is an important stage in its continued development. In a report from 2005, the World Bank Group discusses the best methods of increased access for the rural poor. For example, enhanced remittances and payment services, and long-term saving instruments are highly useful for the poor and can be implemented in small and rural enterprises.

 

Remittances

Remittances, particularly, have grown rapidly in Sri Lanka. As the report states, Sri Lanka should move from an informal, unsafe network to a formal financial institution with better services, such as savings and insurance. This improvement in credit access in Sri Lanka will allow citizens to manage their financials with lower risks.

 

Loan Access

A 2011 assessment by the World Bank concluded that only 35 of Sri Lankan small firms can access a loan or a line of credit. Then, in 2013, Sri Lanka’s Credit Information Bureau (CRIB) and the World Bank agreed to boost credit access by making it easier to use movable assets as collateral. The World Bank will help CRIB to develop a legal framework that allows small businesses to mortgage inventory and equipment to bypass the traditional loan agreements.

 

Loans to Boost Credit Access

And in 2016, the Asian Development Bank (ADB) and LOMC (the nation’s leading microfinance institution) inked a $25 million loan agreement to boost credit access in Sri Lanka, specifically for small businesses and individuals. Under the agreement, LOMC will use the loan as funds for lending to micro-businesses and will improve financial products and outreach to remote farmers. LOMC hopes to improve access to banking, as 70 percent of citizens do not have any access, and, because the deal lasts five years, have the sources for long-term loans.

Sri Lanka continues to grow, and with these credit-based programs and findings, it will do so in a stable and financially viable direction. Hopefully, within the next decade, a majority of the population will have access to banking, and credit will allow for the rural poor to lead more economically independent lives.

– Nick McGuire

Photo: Flickr

February 17, 2018
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Global Poverty

The Promotion and Increase of Sustainable Agriculture in Kyrgyzstan

Sustainable Agriculture in Kyrgyzstan
Kyrgyzstan lies in central Asia with much of its land consisting of rugged and mountainous terrain. The country faces harsh winters and hot, arid summers because of its height above sea level that ranges anywhere from 1,000 meters to 3,000 meters. Kyrgyzstan’s land and climate mean there are very few arable locations suitable for growing and sustaining seasonal crops.

With much of their communities being rural, Kyrgyzstan is reliant on their agricultural products as a source of sustenance and income with around 40 percent of laborers focused in agriculture.

Crops

A variety of crops grown in Kyrgyzstan are best-suited for the land and climate, including wheat, barley, maize, potatoes, vegetables and fruits, while sugar beets, cotton and tobacco are grown for export.

Kyrgyz focus more on keeping pastures and maintaining herds of livestock for food because of the small amount of land for farming. Livestock mainly consists of sheep, goats and yak, but some regions can support cattle, pigs and chickens.

Agricultural Practices

Both the agricultural practices of the Kyrgyz and the increasing amount of agricultural production needed for the population make sustainable agriculture in Kyrgyzstan a growing and serious issue.

Due to how rural much of the country is, farmers tend to only have access to the most basic of tools, and often lack the knowledge of proper farming methods, meaning what little land there is to be farmed is being dramatically degraded. The herding of livestock has had a similar effect on the land in the form of desertification in overused pastures.

Nutritional Deficiencies

The lack of farmable and healthy pasture land is not the only issue regarding sustainable agriculture in Kyrgyzstan. Kyrgyz can only grow hearty, starchy crops to survive the harsh conditions of the country, and as a result, many are affected by nutritional deficiencies; children can have stunted growth because of a lack of essential vitamins and minerals found in fairer weather crops.

Nutritional deficiencies can also be contributed to rural Kyrgyz simply not being able to afford food — many have low salaries compared to the cost of food from Kyrgyzstan and imports to the country.

Foreign Aid

Kyrgyzstan often depends on foreign aid to provide what it cannot due to poverty and the agricultural issues the nation faces. Although this aid does fund some food relief programs to provide for Kyrgyz who need it the most, much of the projects and programs focus on the agriculture itself.

USAID programs in the country tend to focus on both making agricultural practices more sustainable, such as how the land is managed and how produce is stored, and on making the agricultural economy of Kyrgyzstan more viable by aiding in the production of in-demand crops for export.

This, in turn, provides farmers with the money needed to purchase better tools and infrastructure for more sustainable practices.

Sustainable Agriculture in Kyrgyzstan

For the time, sustainable agriculture in Kyrgyzstan is a struggle both economically and environmentally, and lack of proper nutrition has a negative impact on the population.

There is hope on the horizon, though, from a variety of programs funded by foreign aid in an attempt to not only provide Kyrgyz with proper nutrition but also make their agricultural practices so sustainable that they will be able to advance themselves in the future.

– Keegan Struble

Photo: Flickr

February 17, 2018
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Global Poverty

Female Farmers Improve Sustainable Agriculture in Montenegro

sustainable agriculture in Montenegro

Montenegro, like many of the Western Balkan countries, relies heavily on agriculture as a source of economic productivity and is eagerly searching for ways to make its agricultural sector more competitive while preparing to contend with the realities of climate change. The U.N. and the World Bank have worked extensively to promote sustainable agriculture in Montenegro. One important component of this work has been a realization of the need to make these efforts explicitly inclusive of female farmers, who are often overlooked.

The U.N. Food and Agriculture Organization, in particular, has a long history of working to promote competitive, sustainable agriculture in Montenegro that actually improves the circumstances of Montenegrin farmers. In addition to the focus on agriculture, the FAO has also put in place rural development initiatives and helped the Montenegrin government to ensure the sustainable management of the country’s natural resources.

There are some areas where the FAO has been particularly successful. Together with the Montenegrin government, it was able to improve the sustainability and management of the country’s forests, which is important as wood is still a key source of fuel, especially in rural areas. Montenegro has also made strides in recent years in managing its fisheries on the Adriatic coast. The focus now is on bringing Montenegrin agriculture in line with E.U. regulatory standards and ensuring that small farmers can compete on the international market in anticipation of Montenegro eventually entering the European Union.

Rarely, however, do these kinds of initiatives make a point of being inclusive of female farmers. In the Western Balkans, strict gender roles persist and farming is not seen as something that concerns women. But female farmers in Montenegro account for 13 percent of landholders and 65 percent of the agricultural workforce, indicating that perhaps these gender roles are becoming out of date. Female farmers have recently had success securing grants from the World Bank’s MIDAS program, but too often farmers, especially women, are not made aware that these programs exist to help them.

Now, finally, these women are being addressed and reached out to as a real constituency. The Ministry for Agriculture and Rural Development hosted a workshop exclusively for female farmers that allowed them to network and learn about options for assistance that many of the women did not know they had.

Sustainable agriculture in Montenegro, and in the Balkans more broadly, is ultimately going to be about more than eliminating ecologically harmful practices and increasing crop yields in an ecofriendly way. It will also consist of leveling the playing field and improving equity in the industry across all demographics and of producing more and wasting less.

– Michaela Downey

Photo: Flickr

February 16, 2018
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Global Poverty

Sustainable Agriculture in the Solomon Islands

sustainable agriculture in the Solomon Islands

Sustainable agriculture in the Solomon Islands is not as big a concern as it is in regions where domestic agriculture is the main source of food and income. The Solomon Islands does have a small agricultural sector, but for the most part, the nation is very dependent on imported food. Some projects in the country have focused on creating more sustainable agricultural practices, but most focus on disaster preparedness.

Help from Multinational Organizations

Since the Solomon Islands is a Pacific Island country, it is very susceptible to natural disasters, particularly with the increased volatility of climate change. These disasters typically threaten food security and make it very difficult to consistently import food into the country. Organizations like the Food and Agriculture Organization of the United Nations (FAO) have worked with the government of the Solomon Islands to improve disaster preparedness and response. Additionally, the FAO has worked with the Ministry of Health to improve standards of sanitization for imported foods and other food control systems.

The Khaled bin Sultan Living Oceans Foundation also operates in the Solomon Islands. A major project conducted by the organization was the Sustainable Seaweed Farming project. Seaweed farming is a common practice on the islands, and with increased pollution, it is important that practices for sustainable agriculture in the Solomon Islands are in use. This project helped manage overharvesting and helped reduce damage to the coral reef ecosystems.

Government Policy Focused on Agriculture

The Solomon Islands does have its own ministries and departments that manage agricultural issues on the islands. The Ministry of Agriculture and Livestock creates and disseminates policy regarding plans for sustainable rural development, food security and improved livelihoods. These policies are very transparent and easily accessible.

Additionally, these policies are comprehensively broken down into four categories:

  • Farmers/Private Sector/Industry
  • Government and Policymakers
  • Women, Youth and NGOs
  • Development Partners

These categories show a good understanding by the government of who has a stake in the agriculture industry. It shows participation by the government in rural communities, in which almost 80 percent of the population lives. Most of these people additionally rely on agriculture for a portion of their income.

Ultimately, sustainable agriculture in the Solomon Islands is doing quite well, despite it not being a major focus for the island. Through the diligence of the government and projects run by independent organizations the Solomon Islands has implemented green farming and development practices and hopefully will continue to do so in the future.

– Liyanga de Silva
Photo: Flickr

February 15, 2018
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Global Poverty

Port Infrastructure in Sao Tome and Principe Key to Nation’s Growth

Infrastructure in Sao Tome and Principe

Sao Tome and Principe, Africa’s smallest country in terms of geographical size, relies heavily on the production of cocoa, which has been steadily declining due to droughts and mismanagement. Despite the decrease in production, the economy has been growing at a rate of around 4 percent, but it is not enough to alleviate the country’s widespread poverty. An estimated 62 percent of the population lives in poverty.

About 100,000 people, almost half of the island nation’s population, live without electricity and one-third of the available roadways remain unpaved, which makes road travel difficult.

Investing in projects like paved roads and other areas encompassed by infrastructure in Sao Tome and Principe has the potential to jumpstart the alleviation of poverty across the country. Improving the country’s infrastructure opens up other doors for Sao Tome and Principe’s economy to grow and flourish. The World Bank and the government of Sao Tome and Principe are working together to introduce a multitude of reforms promoting growth in the financial sector and infrastructure.

The Urban/Rural Divide

The urban/rural divide is often a driving force for inequality. As countries urbanize, many people move towards the cities and leave rural areas behind. The people left in rural areas often have trouble keeping up with the shift and fall into a pattern of poverty. This is the case for Sao Tome and Principe.

Infrastructure in Sao Tome and Principe is worst in rural areas, but many initiatives have been implemented to improve the infrastructure so that it is equal to urban areas. The African Development Bank Group, a development finance institution, has a goal to diversify rural infrastructure to keep up with Sao Tome and Principe’s growing agriculture strategy.

Sao Tome and Principe’s Location

Oftentimes, poor developing countries fall into a poverty trap based on their geographical location. Many of the most impoverished countries in the world are landlocked. Sao Tome and Principe, being an island nation, is in a much better position to escape poverty than many other countries with a less fortunate geographic location. The islands are situated in a strategic location for international trade via waterways.

Sao Tome and Principe’s government is seeking international investors for the creation of a deepwater port. The government hopes that with the emergence of the deepwater port, Sao Tome and Principe will become an international shipping point connecting central Africa with the United States, Asia and Europe.

The International Development Association

The International Development Association (IDA) is the World Bank’s sector dedicated to helping the world’s poorest countries. Nearly 50 percent of the IDA’s funds go towards programs in Africa. Currently, in Sao Tome and Principe, the IDA is funding projects that total $22 million. The projects are currently focused on the country’s social support sector, advocating for equality for all citizens of Sao Tome and Principe.

Despite its size, infrastructure in Sao Tome and Principe has the potential to make the country a major player on the world’s stage. Continued development in this area can help the country improve living conditions for its most vulnerable citizens.

– Sonja Flancher

Photo: Flickr

February 15, 2018
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