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Increasing Financial Inclusion and Credit Access in Thailand

credit access in ThailandThailand, a country in Southeast Asia which borders the Andaman Sea and the Gulf of Thailand, is interestingly the only country in the region to not have been colonized by a European power. Generally speaking, during the last few decades, Thailand has been able to reduce poverty and bolster economic growth with low levels of unemployment and inflation and increased government spending. Credit access in Thailand has become relatively widespread.

A 2013 study conducted by FinScope revealed that 74 percent of the adult population had access to a bank account, with 23 percent using other formal financial services and only 1 percent using informal services. Thus, credit access in Thailand is considered to be quite inclusive and available. However, there are still improvements that can be made in regard to broadening financial access for the remaining 1 percent. Thus, financial inclusion and widespread accessibility do not necessarily account for the whole adult population spanning across all levels of incomes.

Thailand was highly affected by the Asian financial crisis in 1997 and this caused the Bank of Thailand and the Ministry of Finance to largely invest in stable, low-risk bank operations while tightening lending regulations, which evidently excluded the low-income populations working in the informal sector who were considered to be high-risk. Thus, the United Nations Capital Development Fund argues that the main area for improvement could be through widening access for insurance and credit products for various groups of individuals working within this informal sector.

There are several challenges to widening financial inclusion and credit access in Thailand, which include:

  • Limited access to credit for individuals living in rural communities due to proximity
  • The pervasiveness of informal credit services that are available
  • Individuals lacking the necessary documentation to comply with formal financial institutions, especially with an estimated 2.5 million undocumented migrants living in Thailand
  • Lack of literacy and financial knowledge

This has resulted in individuals and small businesses in Thailand having to resort to less credible and desirable forms of money lenders. Another major barrier seems to stem from the laws that surround commercial banks acquiring credit information. Currently, the law prohibits banks to inquire about a guarantor from the National Credit Bureau (NCB) even with consent, but instead, the guarantor must go to the NCB and then submit their credit information to the bank, which is inefficient and time-consuming for both parties.

The Asia-Pacific Financial Inclusion Summit held in October of 2015 outlined some policy recommendations to improve credit access in Thailand, which include:

  • Increasing options for distributing micro-insurance
  • Raising public awareness and support for the improvement of low-income households to interact with financial services through community-level financial education
  • Improving and shaping public policy in regards to financial inclusion.

Although credit access in Thailand has been steadily broadening, there is a portion of the population, albeit small, that is falling outside of this growing financial inclusive sphere. But with ongoing research by various institutions and an increasing awareness of this issue throughout the country, credit access will hopefully become available for everyone in Thailand.

– Miho Kitamura

Photo: Pixabay

Sustainable Agriculture in Romania and Economic Growth

sustainable agriculture in RomaniaRomania, a former communist country of 20 million people located in Eastern Europe, has one of the highest poverty rates in the European Union, according to the World Bank. Agriculture has historically been a pillar of the Romanian economy; going forward, an increasing prevalence of sustainable agriculture in Romania can help grow the economy and reduce poverty rates.

 

History of Agriculture in Romania

Throughout time, agriculture has been important in Romania, as more than 14.7 million hectares (one hectare is about 2.5 acres) of land serve agricultural purposes. Of that land, about two-thirds are suitable for farming. During the first half of the 20th century, farmlands were reallocated to peasant farmers from larger landowners. However, the rise of communism in the mid-20th century resulted in collective agriculture, followed by questions of ownership in the years since communism’s end. Despite accounting for more than 25 percent of the Romanian workforce, in the early 2000s, the agriculture industry (including forestry and fishing) was less than 10 percent of Romania’s GDP. Today, the majority of farms in Romania are run by small landowners and are less than five hectares.

 

The World Bank Waste Management Project

The World Bank has worked since the early 2000s to help promote economic growth and sustainable agriculture in Romania, leading to it becoming the fastest growing economy in the EU in 2017. Currently, the Integrated Nutrient Pollution Control Project (INPCP) is working to promote a cleaner and safer environment. Many of the small agricultural production sites in Romania lack proper equipment for waste management. Contamination from that waste can lead to groundwater pollution, causing health risks to people and damaging the environment. INPCP works to manage the waste by providing rural farmers with the tools necessary to safely dispose of the waste contaminants.

 

Organic Farming

Organic farming could be a key tenet of sustainable agriculture in Romania in future years. As of 2016, organic farming practices saw large growth: over a five-year span the land area increased by 40 percent and the number of certified organic farmers increased fourfold. Organic farming strives for sustainability in all aspects, from the soil to the crop to the consumer. Organic farming practices are increasing globally, and Romania has much room for future growth in this sector — only 2 percent of the total agricultural land area is used for organic growing.

 

Urban Agriculture

Currently, the majority of the Romanian population lives in rural areas. However, as countries experience economic growth (such as the growth occurring in Romania), people often begin to move toward cities. Within cities, the green space for gardening is often minimal and creative gardens are necessary. Kaufland Romania, a food retailer, is investing over $350,000 to create community urban gardens on its rooftops, in its parking lots and in Bucharest schools. These gardens not only provide local food in a big city but also create environmental benefits through pollution reduction. According to a survey by Kaufland, in Romania, seven out of 10 respondents already practice urban agriculture by growing food in their own homes. The new larger urban gardens will allow for the sharing of techniques, social gathering and community education.

As the economy continues to grow, projects in sustainable agriculture in Romania will further bolster the economy and reduce poverty. Not only do these projects benefit the economy, but they also improve the environment and can create a sense of community.

– Hayley Herzog

Photo: Adam Jones

Tech Solutions for Sustainable Agriculture in Serbia

sustainable agriculture in SerbiaA Serbian institution called BioSense is at the forefront of innovative agricultural solutions research to practice more sustainable agriculture in Serbia. Global food security is one of the main issues of concern in European Union policymaking. Research has concluded that global food production must increase by 50 percent in the next 20 years. That increase will have to come from the intensification of current agricultural practices, so farmers must adapt to make their farms more productive.

The BioSense Centre at the University of Novi Sad in Serbia has partnered with the Foundation for Agricultural Research (DLO) at the University of Wageningen in the Netherlands, the leading research institute for applied research in agriculture and food security in Europe. BioSense, the regional leader in sustainable agriculture and advanced IT solutions research, is working with the DLO to increase food security in Serbia through the integration of advanced IT solutions into agricultural practices.

BioSense has pioneered a new trend in sustainable agriculture in Serbia called precision agriculture, which utilizes Wireless Sensor Networks (WSN) and Remote Sensing to acquire detailed crop data for analysis. The WSN is made up of tens or hundreds of sensors distributed appropriately throughout crop fields. The sensors communicate through wireless signals and acquire data on a variety of factors, including:

  • Humidity
  • Soil temperature
  • Illumination
  • Plant diameter
  • Growth rate

WSN make crop monitoring much more efficient and accurate. This advanced technological solution to precision agriculture can help farmers pinpoint and address problems or weaknesses within their fields. This will enable farmers to produce more food with fewer resources and inputs.

The integration of agriculture and advanced IT solutions is an important potential source of economic growth. Agriculture is one of the biggest industries in Serbia, making up almost 10 percent of its total GDP. Serbia has ideal conditions for agricultural production, with fertile soil, good climatic conditions, experienced farmers, good infrastructure and a rich farming tradition.

Serbia’s current farm structure is dominated by small farms. The country’s potential accession to the European Union may threaten the livelihood of small farmers and “farming heritage” as larger foreign competitors move into the market. Farmers must be willing and able to utilize the kind of advanced IT agricultural solutions developed by institutions like BioSense in order to increase their productivity to keep up with new competitors.

Sustainable agriculture in Serbia will be driven by research-based innovations in advanced IT solutions. BioSense’s strategies like precision agriculture and WSN would not only benefit Serbian farmers striving to drive up productivity in a more competitive agricultural market, but would contribute to the global struggle for food security.

– Sydney Lacey

Photo: Wikimedia Commons

Reducing Poverty Through Agriculture

reducing poverty through agricultureA growing population and the increased demand for food are burning problems in the present day. Many scientists, organizations, individuals and political bodies are coming forward to find solutions to this problem. Feeding so many mouths is not a simple task, but research and hard work are making the impossible at least feasible.

These are some methodical and sustainable ways of reducing poverty through agriculture and farming, especially in places with unfavorable climates, degraded soil and poor socioeconomic conditions.

 

Reforestation Through Cash Crops in Guatemala

Although Guatemala’s name means “a land of endless trees,” 80 percent of them were destroyed within a decade due to cattle breeding, corn farming, illegal settlements and destructive logging practices.

In order to restore the land to its previous condition, an organization named Livelihoods Funds, along with the government of Guatemala, took the initiative in reforestation by planting four million trees of various species over an area of 4,000 hectares.

The trees are mostly cash crops like rubber, coffee, patchouli, cocoa, mahogany, laurel, cedar and citrus plants. This helps the local community with reducing poverty through agriculture, boosting economic development and prevents climate change by reducing carbon dioxide emissions.

 

Reducing Hunger in Sub-Saharan Africa

Hunger, malnutrition and stunting prove detrimental to the economic advancement of any country. The Food, Agriculture, Natural Resources Policy Analysis Network (FANRPAN) came up with the initiative of helping individual farm families of Africa through nutrition-sensitive agricultural development.

Their aim is to provide technical assistance and a knowledge base for increasing food security with improved nutrition. Currently, their work is concentrated in sub-Saharan African countries, including Ethiopia, Nigeria and Tanzania.

 

Alternative Food Production in Kenya

Kenya suffers from inadequate rainfall, which affects the production of maize, the primary staple crop of most smallholder farmers. The result is that a vast population suffers from hunger and starvation.

One Acre Fund is helping the Kenyan government with reducing poverty through agriculture by planting drought-resistant crops like millet and sorghum, which act as a source of food and income during times of inadequate rainfall. The organization also trains farmers in sustainable planting techniques and fertilizer usage.

 

Integrated Pest Management Techniques in Honduras

CropLife International, along with the United States Agency for International Development, is helping the people of Honduras with integrated pest management techniques. With the help of field officials, they train the farmers in good agricultural practices.

The pest management helps protect the crops and increases their quality and productivity, fetching better incomes for the farmers while improving their livelihoods. It is a powerful example of fighting extreme poverty.

 

Bio-fortification in Rwanda

In Rwanda, an organization named HarvestPlus has introduced a nutritious variety of beans through bio-fortification, a process of increasing vitamins and minerals in plants through biotechnology. The beans are rich in iron and also have the capacity to resist viruses. They are suitable for extreme climates, producing a higher yield and thus increasing the incomes of farmers.

 

Fish Farming in Cambodia

The Feed the Future project in Cambodia is helping hatcheries raise good quality young fish known as fingerlings. The project provides cost-effective and simple technology to manage the clarity, nutrients and water quality of ponds. As a result of this technology, the growth rate and average weight of fingerlings have increased. helping individual hatcheries thrive.

The above methodologies are mainly applied in sub-Saharan and Latin American countries where there are extreme temperatures, drought and unsuitable soil. But these models can also be implemented in other parts of the world to increase the productivity of crops and meet the growing demand for food and simultaneously reducing the poverty of farmers.

– Mahua Mitra

Photo: Pixabay

Sustainable Agriculture in Guyana

Sustainable Agriculture in GuyanaGuyana is one of the smallest countries in South America and a large portion of its population lives in poverty. One study found that nearly four in 10 people in Guyana live in poverty while almost two in 10 live in extreme poverty. Agriculture is the most important productive sector in the country, as it accounts for nearly one-third of Guyana’s Gross Domestic Product (GDP) and 30 percent of the country’s employment. Programs to aid sustainable agriculture in Guyana are crucial for its economic growth.

The volatility of international price rates and extreme weather changes challenge the Guyanese agricultural sector. However, this sector also has great growth potential in the country, and the Guyanese government and other foreign nations are investing in sustainable agriculture in Guyana.

The Food and Agriculture Organization

The Food and Agriculture Organization of the United Nations (FAO) has been working closely with the Guyanese government to promote sustainable agricultural systems and alleviate hunger and poverty.

Guyana’s 2012-2015 National Medium-Term Priority Framework, which is now known as the Country Programming Framework (CPF), is guiding the FAO’s assistance in the country. The CPF centers on four priority areas:

  • Food security and nutrition
  • Agricultural and rural development
  • Renewable natural resources and climate change
  • Agricultural health and food safety

Among its projects, FAO’s most successful initiative in Guyana’s agriculture sector aims to train people on how to respond to extreme climate change and natural disasters. Droughts and floods severely affect farmers and the agriculture sector in Guyana. The FAO assisted the Guyanese government in the formation of a Disaster Risk Management (DRM) Plan.

The project included training Ministry of Agriculture extension officers and other stakeholders in accordance with the FAO Livelihood Assessment Toolkit and a “full assessment of existing mechanisms for prevention, mitigation and preparedness, as well as response and recovery.” As a result, an informative report emerged to help the development of sustainable agriculture in Guyana. This project had success at the community level, and the Guyanese government has called on the FAO to help implement the DRM Plan in response to extreme climatic changes.

Other Projects for Sustainable Agriculture

Several other projects funded by foreign organizations are working to develop sustainable agriculture in Guyana. For instance, the International Fund for Agricultural Development (IFAD) funded Rural Enterprise and Development Project (READ) seeks to strengthen “intermediary service providers, institutions whose services add value to production and marketing systems and improve rural welfare.” In addition, the program works with rural communities to improve their capacity to capitalize on market opportunities.

Similarly, the Inter-American Development Bank (IDB) funded Agricultural Export Diversification Program (ADP) aims to establish institutions and services for a sustainable increase in the incomes from “the export of non-traditional agricultural exports in aquaculture, fruits and vegetables and livestock subsectors.” This project focuses on developing commodity chains on the nontraditional agricultural products in order to address Guyana’s export growth rate volatility.

Investment in sustainable agriculture in Guyana is crucial in order to boost productivity and sustainable use of resources in the country. Hopefully, with similar continued efforts, the country will be able to reduce poverty and promote food accessibility for everyone.

– Mehruba Chowdhury

Photo: Flickr

Enabling Sustainable Agriculture in Tonga

sustainable agriculture in TongaMore than 70 percent of Tonga’s population lives in rural areas with agriculture and fisheries as its main source of livelihood. The country’s predominant economic activity is agriculture, so establishing sustainable agriculture in Tonga is essential to its economy.

Of all the Pacific Island countries, Tonga has one of the highest rates of subsistence food production. The method is self-sufficient and farmers produce enough food for local consumption with a little surplus for trade. More than 95 percent of Tonga’s agriculturally active households engage in subsistence and semi-subsistence agriculture activity, and only five percent engage in commercial activities.

Small landholdings, typically eight acres or 3.24 hectares, enable sustainable agriculture in Tonga. Multi-crop systems based on root crops provide food security, employment and income.

Root crops constitute 50 percent of Tonga’s total exports, with half being taro. Approximately 60 percent of Tonga’s exports are destined for New Zealand.

Watermelon exports increased from 86 tons in 2010 to 271 tons in 2013. Tonga’s goal is to export 1,000 watermelons per year to New Zealand over the next three years; New Zealand imports 2,500 tons of watermelons annually. Other export destinations include Samoa and American Samoa.

Tonga’s Ministry of Agriculture, Food and Forests (MAFF) plans to improve sustainable agriculture in Tonga by implementing the Tonga Agriculture Sector Plan’s four programs:

  1. Climate Resilient Environment: Ensures that Tonga’s natural resources are preserved
  2. Enabling Environment: Focuses on improving Tonga’s environment for the agriculture sector’s operation
  3. Sustainable Livelihoods and Healthy Foods: Improves farmers, knowledge, marketing techniques and technologies for sustainable and diverse agriculture
  4. Sustainable Growth and Foreign Exchange Earnings: Increases exports and enhances import replacements

MAFF’s main purposes are to:

  • Provide policy advice to the Tongan government on maintaining a sustainable and competitive agricultural sector
  • Provide policy advice on achieving social, economic and environmental benefits from limited natural resources
  • Administer government programs and legislation to support these objectives
  • Regulate imports to ensure Tonga is safeguarded against exotic threats
  • Regulate exports to satisfy importing country requirements

The Tongan government is focused on establishing a secure agricultural sector plan that promotes sustainable agriculture in Tonga. With the majority of Tongans reliant on agriculture, successful implementation of the Sector Plan is vital to the population.

– Carolyn Gibson
Photo: Flickr

Sustainable Agriculture in Nepal Reducing Food Insecurity

Sustainable Agriculture in Nepal

Nepalese society faces challenges regarding agricultural disparity, a cultural problem rooted in the caste system. Sustainable agriculture in Nepal is essential to the growth and development of the Nepalese.

According to GlobalGiving, malnutrition and food insecurity are common obstacles that Nepalese society endures. Subsistence farming, a system in which farmers grow enough food to feed their own families, does not always provide adequate nutrients and is hindered by severe weather.

Educate the Children (ETC) aims to teach, provide resources such as agricultural tools and high-quality seeds and improve food security. Agriculture in Nepal is not providing enough security for families. Educate the Children’s Agricultural Development Program offers assistance to Nepalese women with practical farming skills to produce greater quantities of nutritious food. The ADP will provide sustainable agriculture in Nepal through organic cultivation that can decrease the use of chemicals.

ETC provides their women’s groups with seeds, tools and access to credit via group funds to rent land for enough produce to sell. Sustainable agriculture in Nepal is also being taught to young children, training them on planning, cultivating and harvesting gardens. The knowledge they learn is passed onto their families to demonstrate the importance of sustainable agriculture.

The International Food Policy Research Institute (IFPRI) believes in the power of sustainable agriculture, noting that agriculture makes up one-third of Nepal’s GDP and is the main source of income for two-thirds of the population. Food security and adequate nutrition are important objectives for Nepal. Their solutions for establishing sustainable agriculture in Nepal include education and training for people of all ages, particularly women, who have an opportunity to improve nutrition and health.

The Sustainable Agriculture Development Program in Nepal (SADP) aims to improve the resources of Nepalese farmers and communities via an understanding of agricultural development and promoting sustainable farming techniques. Actions taken by SADP to promote sustainable agriculture include demonstrating various farming methods, teaching communities the necessary skills needed for food production and establishing resources for Nepalese communities that can be sustained.

Sustainable agriculture in Nepal is a work in progress with development and changes underway. This work will not only help create an environmentally friendly society, but also improve the lives of many throughout Nepal.

– Jennifer Serrato

Photo: Flickr

Powering Development with Infrastructure in Togo

Infrastructure in TogoTogo, a West African nation on the Gulf of Guinea, shares a border with Ghana and has an estimated population of 7.6 million as of 2016. Togo is working towards improving its economy and relations by improving the country’s infrastructure.

Infrastructure is a crucial platform that supports countries, whether it be via economic or social means. Oftentimes, basic infrastructure such as power and water are lacking or in need of upgrades to sustain communities and development.

Power infrastructure in Togo is being improved with support from investors and consultation from the International Finance Corporation (IFC). ContourGlobal, a power company, is helping Togo meet the growing demand for power. The IFC is investing 20 percent equity in ContourGlobal for the development and operation of a 100-megawatt power plant located in Togo’s capital, Lomé. It now produces enough electricity for the city and will soon be enough to sustain regional power supplies. Electricity infrastructure in Togo has proven reliable and efficient in assisting communities as well as encouraging investment in infrastructure that will prove successful for Togo in the long run.

The World Bank has also assisted Togo with infrastructure development. The Emergency Infrastructure and Electricity Rehabilitation Project (PURISE) will support the Togolese government in restoring and expanding infrastructure in Togo. This project will improve urban mobility and access to remote locations as well as provide temporary work for workers in Togo.

PURISE is split into four categories, each one focused on areas needing improvement. One of the categories will focus on the drainage of unclean drinking water and replace outdated gutters with sustainable drainage networks. The water infrastructure in Togo is also seeing improvement via projects. One of the categories in PURISE is set to increase water access and improve the quality of drinking water. This will be achieved with networks of water systems between communities and installing pipes and water kiosks.

UNICEF states that 39 percent of Togolese do not have access to clean water and a quarter of the Togolese population does not have access to water within walking distance. The government of Togo has made commitments to improving water and sanitation, including eliminating open defecation and establishing sanitation and hygiene resource departments.

Infrastructure in Togo is slowly growing throughout the country. With investments being made in basic resources, Togo is sure to see beneficial modernization.

– Jennifer Serrato

Photo: Flickr

The Growth of Infrastructure in the Central African Republic

infrastructure in the Central African Republic
With a GDP per capita of only $639, the Central African Republic is ranked as the poorest country in the world. In a study undertaken by the Africa Infrastructure Country Diagnostic project, infrastructure in the Central African Republic was found to have contributed much to the country’s economic growth.

Between 2005 and 2009, despite the decades of conflict that have riddled the Central African Republic, the total contribution to the country’s per capita growth by telecommunications, electricity and road infrastructure was 0.9 percentage points. Though this was significantly lower than other central African countries, the study made it clear that infrastructure development in the sub-Saharan context led to faster growth per capita in several countries.

This strong potential is also beset by a dire reality: the central African region has the worst infrastructure on the African continent. According to a report by the African Development Bank (AfDB), the “region stands out on the continent as one with the least infrastructure network, particularly transport and energy, which impacts negatively on production capacities and regional trade as well as social conditions and welfare.”

Infrastructure in the Central African Republic, in particular, is in a very poor state. For instance, only 10 percent of the population — mainly in the capital of Bangui — has access to electricity, which is not available to the rural population.

Other services like telecommunication and banking are either lacking or nonexistent beyond Bangui. Corruption within the government not only fuels instability but also hinders developmental and growth efforts in the country as natural resources like diamond and gold are exploited within the inertia of instability.

Despite the many challenges, transport, water, power, and information and communications technology infrastructure in the Central African Republic have seen significant progress with $134 million in annual spending, $37 million of which is lost to inefficiencies.

The World Bank has estimated that a sustained expenditure of $346 million per year over the next decade can address the challenges that remain. Just by improving efficiency in infrastructure operations, around $34 million of additional resources can be unlocked.

Alternatives to the government’s poor budgetary situation have also been proposed, including extending the time horizon for meeting the infrastructure targets, prioritizing infrastructure spending and exploring additional resources from outside the budget. These are all ways infrastructure in the Central African Republic can be improved.

2017 saw some economic recovery in the Central African Republic, with GDP growth estimated to be around 4.5 percent, which fell short of the projected 5.3 percent. In 2018-19, the AfDB foresees a rise in average annual growth to 5 percent or higher. This growth “will hinge on improved domestic security, which is crucial to agricultural recovery and implementation of investment plans and economic reforms supported by international partners.”

– Mohammed Khalid

Photo: Flickr

Sustainable Agriculture in Namibia Needs Improvement

sustainable agriculture in Namibia

Agriculture is an important part of a country’s economy. If a country does not have sustainable agriculture, it puts the economy in danger of failing and puts the nation’s citizens at an economic disadvantage. This has been the case for the country of Namibia.

Throughout the past few years, Namibia has suffered through three significant droughts that have had a severe negative effect on its agriculture. The lack of rain has led to soil erosion across the country as well as crop failure and high livestock mortality rates. Considering the country of Namibia relies heavily on farming its own food instead of having products imported, this has caused a numerous amount of problems throughout the country. In the aftermath of the drought’s impact, sustainable agriculture in Namibia has been placed in question.

The lack of food security caused by the impact of the drought has put the country in a very troubling place in regards to both its agriculture and economy. The lack of sustainability has also led to a significant decrease in income for farmers who live off their land and make money from their crops. This has left many citizens, as well as the country as a whole, at an economic disadvantage.

The disastrous effects of the drought have led to the Food and Agricultural Organization (FAO) stepping in to make a presentation about the country. The presentation highlights ways that sustainable agriculture in Namibia can be reached, and provides a platform for people to create ideas to help the country get back on its feet. The country has been in an unstable state because of the nature of its land as a result of the droughts, and the FAO is trying to come up with ideas to rectify the situation for Namibian citizens.

Despite the negative situation, the country has been able to sustain itself through the help of the First National Bank of Namibia. The Bank has contributed thousands of dollars to the farmers of Namibia to help support them through the effects of the drought and has continued to show support to the citizens of the country as they recover from the trying years. The need for sustainable agriculture in Namibia is still high, but farmers are doing their best to meet these needs and help create economic equilibrium in the country.

The cattle farmers in Namibia are experiencing a surprisingly good year compared to the past few they have had, and have been able to increase sales despite having to reduce their herds during the drought. This is a good sign for Namibia because it is now able to bring money into the country to help stabilize the economy, which can lead to a more sustainable agriculture.

Namibia is looking forward to a very rainy and prosperous year for its crops. This will hopefully allow the nation to create and maintain sustainable agriculture and an improved economy as a result.

– Simone Williams

Photo: AllAfrica