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Female entrepreneurs in AfghanistanIt is no secret that women’s rights in Afghanistan have been suffering due to decades of war and Taliban rule in the country. Afghan women have been denied employment, education, healthcare and basic freedoms for years and were punished violently by the Taliban for attempting to find work or go to school. Years after Taliban rule, women are picking up the pieces of a broken society that drove them and many other Afghans into severe poverty. Organizations such as the Women’s Economic Empowerment Rural Development Project (WEERDP) and the Afghanistan Reconstruction Trust Fund (ARTF), both funded and backed by the World Bank, set up savings and loan associations in different communities to allow Afghan women to start their own business. Female entrepreneurs in Afghanistan have the potential to help the economy and poverty within the country.

Women’s Empowerment Projects of the World Bank

International Aid to Afghanistan is essential for empowering its women and bringing communities out of poverty. The World Bank has a variety of programs dedicated to poverty eradication. It implemented the Afghanistan Rural Enterprise Development Project to support Village Savings and Loan Associations (VSLA). VLSAs operate as a community bank that gives out micro-loans to women to create employment opportunities to sustain economic growth. Examples of businesses that have been started are hair salons, tailor shops and bakeries.

While the Afghanistan Rural Enterprise Development Program closed down in 2018, it was replaced by the WEERDP and continues to be backed by the World Bank and the International Development Association (IDA) to ensure steady funding.

VSLA’s are funded by the World Bank and the IDA to ensure sustainable financial institutions are available in Afghanistan, with the hope that they will partner with larger commercial banks in the future.

Benefits of Female Entrepreneurs in Afghanistan

There are roughly 275,684 Afghan women beneficiaries of the WEERDP.  Many of them have had access to financial services for the first time with the program. Many others have taken loans, learned how to repay them and have begun saving for the future. These are valuable life skills for women who were not able to enter the workforce or gain an education in the past.

With the increase of women-run businesses in Afghanistan’s rural communities, VSLA’s can begin to partner with larger banks to begin serving bigger loans to women after seeing the success of the businesses that started with micro-loans. The support of financial institutions is important to give women the confidence to become entrepreneurs, especially in a country where the percentage of women in the workforce has been statistically low. Skills like leadership, management and problem-solving are derived from starting a business and they can be spread throughout communities to strengthen the role of women in the economy.

Skills can even be passed down through generations. Building a structure with programs like the WEERDP is vital for long-term economic growth and success because it can open doors for creativity and innovation for an economy that would benefit.

The Future of Female Entrepreneurs in Afghanistan

Increasing the number of women entrepreneurs with savvy financial skills can benefit the communities of Afghanistan in many ways. Successful women can begin to venture out into local politics and healthcare fields to build on their skills while sharing their talents with the community. Women have important input on what types of businesses are needed for their community and can reduce poverty in specialized ways.

Afghan women make up roughly half of the nation’s population, so their representation is needed to drive economic and societal progress. Having women be visible in the business sector can allow for gender equality to improve in Afghanistan over time, improving the development of the nation as a whole.

– Julia Ditmar
Photo: Flickr

rice exportsPakistan and India are battling a rice war, as India is attempting to gain exclusive branding rights to export basmati rice to the EU. India’s trademark “geographic indication” for basmati rice has received approval from the EU and Pakistan has three months to respond to this claim or it will not be able to export basmati rice to the EU. Further implications of expanding geographic indication could compromise other markets for Pakistan, yet its response so far has been slow and inconsistent. The EU’s decision on basmati rice exports will influence each country’s economy, and with hundreds of millions of impoverished people between the two, there is much at stake.

The Value of Rice in Pakistan and India

The basmati rice industry is one that Pakistan heavily contributes to and relies on. Pakistan contributes to 35% of global basmati rice exports and its trade to the EU has grown from 120,000 tons in 2017 to 300,000 tons in 2019. A whole 40% of Pakistan’s workers work in agriculture, with rice accounting for 20% of agricultural land.

India exported 4.4 million tons of basmati rice between 2019 and 2020, which made up 65% of global basmati rice exports.

Rice Yield Challenges

Despite rice production increasing due to new practices, rice yields in both Pakistan and India are lower than the global average. Growing challenges such as drastic climate change can negatively influence annual rice production. Experts conclude that improving irrigation facilities and increasing the use of new technology will allow the countries to effectively expand their rice yields.

Population Growth & Economic Contraction

Already the fifth most populous nation in the world, projections have determined that Pakistan will grow from 220 million to 345 million by 2045. As its population continues to grow, its economy must grow at least 7% to prevent unemployment. However, in 2019, the economy contracted from 5.5% to 1.9% and the COVID-19 crisis further exacerbated this shrinkage. Unemployment has increased each year since 2014 and currently sits between 4% and 5%. It is imperative that Pakistan jumpstarts its economy or unemployment and poverty will spread.

Poverty in South Asia

Pakistan made great strides in reducing poverty in the early 2000s but has since stalled under more recent governments. By 2015, roughly one in four people, or 50 million Pakistanis, lived under the poverty line. Furthermore, there remains little opportunity for economic improvement.

India also has few opportunities for the poor to improve their lives as it placed 76 out of 82 countries in terms of social mobility. The lack of social mobility means that most people who are born poor will die poor, with minimal chances to jump to a higher social class. India also suffers from severe social inequality and a lack of growth in rural areas. A whole 364 million out of 1.3 billion, or 28% of the world’s poor live in India. However, globalization has allowed India to bring 270 million people out of poverty between 2005 and 2015. Consequently, since 1990, the life expectancy has increased by 11 years, schooling years have increased by three years and India has increased its human development index to above the medium average.

Malnutrition Causes Infant Mortality

Pakistan has an alarmingly high infant mortality rate of 55 deaths per 1,000 live births, which is twice that of India’s. A multitude of factors causes this, most notably, the malnutrition of mothers and their infants. Although wheat and rice are produced in abundant quantities, 44% of children under 5 suffer from stunted growth due to malnutrition. The problem is not whether food is available but it is that food is not accessible for the poor.

Rice as a Key Export

In Pakistan, rice provides value both nutritionally and economically. Rice accounts for 1.4% of the GDP and the traditional basmati rice makes up 0.6% of the GDP. However, most rice is sold as an export and is not used to feed hungry mouths domestically. In 2019, Pakistan exported $2.17 billion worth of rice, of which $790 million was basmati, a 25% increase from 2018.

A whole 90% of the rice grown in India is consumed domestically. Boasting the second-largest population in the world of 1.3 billion people, India accounts for 22% of global rice production but has many more people to feed than Pakistan. India is projected to produce 120 million tons of rice between 2020 and 2021.

Basmati rice exports generate massive profit for each country, If one country were to gain an advantage over the market, it would create enormous value for the winner and dire consequences for the loser. The winner would stand to gain economically and competitively as a result of increased production and profits. Additionally, increased demand for agricultural workers and production in rural areas would create revenue in historically impoverished areas.

– Adrian Rufo
Photo: Flickr

Life Expectancy in JapanYear after year, Japan consistently ranks as one of the top countries for life expectancy. These top 10 facts about life expectancy in Japan is a reflection of economic developments that occurred since World War II.

Top 10 Facts About Life Expectancy in Japan

  1. Japan ranks second in the world for life expectancy, with the average Japanese citizen living to 85.0 years. The life expectancy for the average female in Japan is 88.1 years and 81.9 years for males. There has been a fairly consistent difference in the life expectancy between women and men in Japan. Currently, women are expected to live around 6.2 years longer than men. Prior to 1990, the country had not even made the list of the top 100 countries with the highest life expectancies.
  2. The fertility rate in 1955 for Japan was 3.0 live births per women, which has decreased to 1.4 in 2020. A decrease may appear worrisome but there is a clear correlation between fertility rates and wealth. Poorer nations tend to have high fertility rates which continues a cycle of poverty but intermediate levels of fertility tend to represent an economically stable, wealthy country.
  3. Infant mortality and overall child mortality rates have greatly decreased since the 1950s. In 1950, the infant mortality rate was roughly 47 deaths per 1,000 births and the number of deaths for children under 5 was 72 per 1,000 births. As of 2020, the infant mortality rate and deaths for children under the age 5 is 1.6 and 2.2 per 1,000 births, respectively. These statistics display growth that has contributed to a higher life expectancy in Japan.
  4. Diet and lifestyle are major contributors as well. Japanese people tend to enjoy well-balanced, nutritious meals that consist of vegetables, fruits, fish and high-grain based foods. This diet is low in saturated fats and includes mainly natural, unprocessed foods. In addition, the country has succeeded in promoting a healthy and active lifestyle. Even in their old age, many Japanese seniors continue to exercise regularly.
  5. Rapid economic growth was seen in the country in the 1960s and the Japanese Government made great efforts to invest in the country’s healthcare system. In 1961 the country adopted universal health insurance for their citizens which included vaccination programs and medical treatments that greatly decreased both adult and child mortality rates.
  6. Increased economic prosperity is a contributing factor. After World War II, Japan experienced an extremely rapid growth in its economy. Increased economic prosperity led to medical technology advancements, universal healthcare access, improved diets and lifestyles, decrease in disease and deaths, improvements in education and lower mortality rates. Economic prosperity and life expectancy rates are related, as seen in Japan.
  7. A smaller poverty gap can also account for life expectancy in Japan. In the 1970s, Japan had a smaller income and wealth gap in the population compared to many other developed countries and it has been proven that a higher inequality in wealth correlates to higher mortality rates.
  8. Successful health education and a well-established health culture is what Japan is known for. Majority of citizens engage in regular physician check-ups and receive vaccinations and immunizations. Furthermore, Japanese people are encouraged to reduce their salt intake and red meat consumption, advice the people take seriously.
  9. Practice of good hygiene is another factor in explaining the high life expectancy in Japan. Common practices such as handwashing and cleanliness is normal in Japan but the country also has sufficient access to clean, safe water and sewage systems as well.
  10. Decreased cerebrovascular diseases. Historically, Japan has always had low rates of ischemic heart disease and cancer compared to other developed, high GDP countries. However, Japan had one of the highest rates for cerebrovascular disease from the 1970s-1980s. Thanks to health developments, Japan has greatly decreased their rates of cerebrovascular diseases within the past 20 years.

– Bolorzul Dorjsuren
Photo: Flickr

Greek startups are helpingEntrepreneurs in Greece are finding ways to battle the financial crisis that has crippled its economy. While entrepreneurship in Greece has predictably prospered in the tourism sector, many new startups are finding success in technology, science and engineering. In 2018, Greece was named the European Capital of Innovation by the European Union and ranked 11 in the world by the Global Innovation Index for science and engineering graduates. Via innovative ideas, Greek startups are helping the economy by creating jobs and stimulating economic development.

Augmenta

Founded in 2016, Augmenta has been helping farmers decrease their costs while increasing production. The video device uses machine learning to analyze tractor movements, increasing yields by 15%, reducing chemical field inputs by 20% and improving field end production by 15%. Another advantage of this innovative technology is that the more the farmer uses the device, the more data will become available to the other farmers. Augmenta’s benefits are promising for farmers and the agricultural industry as a whole.

Neos Beyond Payments

With the increasing demand for contactless payment due to COVID-19, Greek startup Neos Beyond Payments is finding its place in the economic market. The wearable device has now taken off in the European market and continues to expand into Scandanavian markets as well. In partnership with a Swedish technology firm, Fidesmo, Neos makes it possible for you to tap and pay on any contactless terminal, the same way you do with your payment card, by using the Neos wearable bracelet. With more demands for contactless payment options, the Neos wearable device will be useful in all markets.

Inagros

Inagros is another one of the Greek startups helping the economy by creating innovative technologies for farmers and agronomists. Inagros’ innovative web platform delivers data through satellites and sensors to enhance crop production and reduce the consumption of water, fertilizer and energy. This new technology is expected to be a pillar in the development of the smart farming revolution, with innovations expected to significantly impact automatization and sustainable management in particular.

Rebuilding the Greek Economy

The bailout in 2010 was just the beginning of the collapse of Greece’s’ financial economy. By 2015, the country had borrowed more than €289 billion, the largest bailout a country has ever received. As a result of which, entrepreneurs, scientists and professionals fled due to the dying economy. Entrepreneurs in Greece that persisted during these years created momentum and paved a path for future entrepreneurs to continue to contribute to rebuilding the fallen economy. While Greece continues to fight through financial barriers, a booming economy may be on the horizon, with Greek startups helping the economy by creating innovative market opportunities that steadily bring life back into a fragile economy.

– Brandi Hale
Photo: Flickr

mexican avocadosMexico is the second-largest nation in Latin America with over 130 million residents. Mexico exports an abundance of fruits and vegetables but its number one export crop is avocados. Not too long ago, avocados were not the number one crop being exported from Mexico. Today, the economic impact of Mexican avocados has helped many people escape poverty.

Poverty in Mexico

According to the World Bank, in 2018 almost 42% of Mexicans lived in poverty, with the rural population being the most impacted. Moreover, around 62% of Mexican children make it to high school and only 45% graduate. To reduce poverty, Mexico has increased its social spending to help those in need. The Mexican government has implemented programs such as cash transfers, farmland subsidies, scholarships and subsidized medicine. These programs are put into place in the hope of reducing poverty in Mexico.

The Mexican state of Michoacan is one of the poorest in the country. A whole 46% of people in the state lived in poverty in 2018.  However, Michoacan is rich in agriculture. In fact, around 20% of the land is used for agriculture and the industry employs 34% of the population. Moreover, Michoacan’s most popular crop is the avocado.

The Avocado Industry Boom

Michoacan is the top producer of avocados not only for Mexico but for the entire world. Increased demand for avocados has created an economic boom in the country. Mexican avocados make up 82% of all U.S. avocado sales. Furthermore, Mexican avocados have created more than 30,000 U.S. jobs and have an economic output of $6.5 billion. Even during the COVID-19 pandemic, avocado sales were flourishing.

The United States had banned the import of Mexican avocados in 1914 due to fears of insect infestation. In 1994, The North American Free Trade Agreement (NAFTA)  implemented between Mexico, Canada and the United States resulted in the ban being lifted. The agreement led to the free flow of Mexican avocados into the U.S. The company Avocados From Mexico (AFM) has sold 2.1 pounds of avocados in 2020 and expects 2.3 pounds to be sold in 2021. Mexican avocados have had such a great economic impact that they are called “green gold” by the locals.

Impact of Mexican Avocados

The increased demand for Mexican avocados has led to less migration of Mexicans into the United States. The competitive wages avocado farming has produced has meant many more Mexicans are willing to stay in their home country. The popularity of avocados has led to the creation of thousands of jobs in Mexico. Due to this fact, families do not feel the need to migrate to the United States for employment.

The demand for Mexican avocados has led to employment opportunities, less migration and closer economic ties to the United States. The Mexican avocado industry is playing a part in reducing global poverty.

– Andy Calderon Lanza
Photo: Flickr

Women’s rights in TunisiaFor neighboring countries, Tunisia is a model of women’s rights. Although women’s rights in Tunisia are lacking in some areas, activists and lawyers have consistently worked to dismantle patriarchal social structures.

Poverty in Tunisia

The national poverty rate consistently fell between 2005 and 2015. In 2005, the poverty rate in Tunisia was 23.1%, and in 2015, the poverty rate was 15.2%. Poverty tends to disproportionately affect inland regions in Tunisia.

Inland regions register higher rates of poverty than coastal regions. This difference is often stark. In Centre West, a landlocked region, the rate of poverty was 30.8%, whereas, in Centre Est, a coastal region, the poverty rate was 11.4%. The national poverty rate for men and women, however, was nearly identical.

Role of Women in the Economy

By 2005 the number of female entrepreneurs in Tunisia was nearly 5000 and had impressively doubled to 10,000 by 2008. Despite the expansion of women’s rights in Tunisia, which has played out through a legal process, deferral to traditional gender roles continues to hold women back from pursuing entrepreneurial roles in society. A 2010 study found that this may be explained by an “inadequate support system” for women in Tunisia who aspire to develop careers in the business world.

Mowgli Mentoring

The development of a strong support system for women entrepreneurs in Tunisia is the goal of Mowgli’s partnership with the European Bank for Reconstruction and Development (EBRD). The initiative partnered 12 Tunisian businesswomen with Mowgli mentors for a year. Its goal was to create a new culture of support and sustainability that will foster “economic and societal development throughout Tunisia.”

This approach is fundamental to shift the business culture in Tunisia. Institutional support for women entrepreneurs is tantamount to their success. Women entrepreneurs generally receive less institutional support than their male counterparts receive upon starting a new business. This includes a lack of financial support from financial institutions. Women entrepreneurs are also less likely to be offered opportunities to participate in business training, courses or schooling.

Women Entrepreneurs in Tunisia

Despite these obstacles, women entrepreneurs in Tunisia have developed innovative ways to improve support for women in business. Raja Hamdi is the director of the Sidi Bouzid Business Center. The center supports startups by providing mentors to evaluate business and market trends.

The Sidi Bouzid Business Center works closely with the Mashrou3i program, which is a partner of Go Market, a research and marketing firm located in the Kairouan region of Tunisia. Go Market was founded by female entrepreneur, Hayfa Ben Fraj. It works strategically in market analysis to support a “wide range of sectors and diverse fields such as technology, crafts and agriculture.”

Working Toward an Inclusive Economy

Although patriarchal structures of repression endure in Tunisia, the overall attitude is one of progress, equality and inclusion. Constituting one half of the population in Tunisia, women represent a latent workforce with the potential to reshape Tunisia’s economy through a series of innovative programs based on a culture of mutual support. Women’s rights in Tunisia will continue to increase as entrepreneurial opportunities for women flourish.

– Taylor Pangman
Photo: Flickr

Innovations in the PhilippinesOver the past decade, there have been drastic innovations in the Philippines. The country has experienced dramatic economic growth and development. In 2019, the Global Innovation Index (GII) found that the country improved on all metrics used to calculate advancement.

Economic Growth

In 2019, the Philippines appeared for the first time in the “innovation achievers group.” The country outperformed many other countries in the area.  Some of the metrics used to calculate these scores included increased levels of creative exports, trademarks, high-tech imports and employed, highly educated women.

As a country, the Philippines has risen 19 spots in the ranking since 2018, to 54th out of 129 participating countries. This indicates a significant increase in the standard of living for many Filipinos. This is apparent in the significant decrease in the poverty rate over the past few years. From 2015 to 2018, the national poverty rate dropped a total of 6.7%, or by 5.9 million people.

Prosperity is largely due to the success of local business owners and entrepreneurs. They have used their influence and prosperity to help those in need in their communities and countries, especially in the health sector. Coincidingly, there was a significant increase in global trade. Both factors have propelled the Philippines into the global economy as an important emerging market to keep an eye on.

Global Benefits

In 2018, the Philippines and the United States trade relationship developed significantly. The total goods trade was $21.4 billion collectively, in the petroleum and coal, aerospace and computer software, motor vehicles and travel/hospitality sectors. This is beneficial to the U.S. because international trade employs over 39.8 million Americans. As the Philippines becomes more prosperous, more Filipinos are able to pour money and resources into helping marginalized communities across the country. As such, there has been an increase in innovations in the Philippines, notably in the health and medical sectors.

RxBox

A distinct industry on the frontlines of innovations in the Philippines is the health sector. Increased health for a population is directly related to better access to opportunity and a higher standard of living overall. One company doing this important work in the Philippines is RxBox.

RxBox was developed by the country’s Department of Science and Technology. It is a biomedical telehealth system that provides health care and diagnoses to people in communities that are remote, difficult to access. The service is additionally available for people who do not have access or the ability to travel for health care.

It is a game-changer for disadvantaged people who would otherwise not be able to get fast, effective medical care. RxBox reduces costly hospital and medical visits, which facilitates better health for people. Communities are then better able to care for themselves and for their families, providing greater opportunities for everybody.

Biotek M

There is another player in the innovations in the Philippines: Biotek M. It is a revolutionary diagnostic kit for Dengue. A local team at the University of the Philippines-Diliman were the creators of this new technology.

Traditionally, the Polymerase Chain Reaction (PCR) test is used to confirm the disease but can cost up to $8,000 and takes 24 hours to get results. That is inaccessible to lower-income people who are oftentimes the demographic most commonly afflicted by the dengue infection. The kit helps reduce resource usage for both medical centers and patients by making the diagnosis process significantly more streamlined.

In 2017, 131,827 cases of Dengue were recorded with 732 deaths, mostly affecting young children aged 5 to 9-years-old. Being able to quickly diagnose and treat people who contract this illness makes a huge impact on people living in poverty.

When people spend less time, energy and money on being healthy, they are able to use their resources more efficiently. In this way, medical innovations in Philippines and a growing economy directly increased the standard of living for people living in poverty within the country.

Noelle Nelson
Photo: Flickr

Extreme Poverty in MoldovaFrom 1999 to 2015, Moldova went from a 36% extreme poverty rate to zero, effectively ending extreme poverty in Moldova. By analyzing Moldova’s poverty reduction strategies, organizations such as the International Monetary Fund (IMF) and the World Bank can form a blueprint to fight extreme poverty globally.

IMF Focus on Poverty Reduction

In 2000, the IMF instituted a three-pronged approach for ending extreme poverty in Moldova, which involved major reforms in governance and the public sector. Economic development, healthcare changes, educational developments and social safety nets were the primary focus to kickstart growth in the country.

  • The IMF’s focus on economic development revolved around public spending and lack of private business. Aside from ensuring fiscal responsibility from the government, government retirement plans and debt were swallowing the countries budgetary resources. The IMF advised Moldova to revise its tax system to be more equitable while strengthening its private sector by easing regulations and tax burdens on small and medium businesses.
  • Education was a foundational part of the reform process. The IMF ensured Moldova improved its education system through guidance from the World Bank. The primary focus was on improving education standards and increase the availability of secondary education to needy students.
  • The health sector developed more substantial healthcare access to reduce long-term expenses and to involve the private sector.
  • Developing better social safety nets was a key pillar for the IMF in Moldova. Most importantly, the goal of the program is to keep children out of poverty. This included food security and funding to access human development services. Also on the agenda was reforming the nation’s pension system to protect aging populations.

Impact of Changes in Moldova

These changes were to be implemented by no later than 2003 and most changes are ongoing. How well did the changes work? In 2000, Moldova’s GDP per capita was at $1,439 and by 2019 the GDP per capita rose to $3,715, doubling the nation’s economic growth. The secondary education enrollment rate was 48% in 1999 and grew to an 86% enrollment rate by 2019. Though absolute poverty remains high, these strategies were instrumental in ending extreme poverty in Moldova. Even by 2006, the extreme poverty rate was down to 4.5%.

The World Bank’s Evaluation

The World Bank processed an analysis from 2007 to 2014 using data to determine how ending extreme poverty in Moldova was effective. Compared to most of Europe, Moldova is still impoverished, but extreme poverty no longer plagued the country by 2014. There were four primary factors that the World Bank determined to be the cause of this success. Economic expansion, advanced opportunities for workers, better retirement fiscal responsibility for aging populations and international work being funneled back into Moldova’s economy, were the most effective tools for alleviating extreme poverty.

  • Despite a setback during the financial crisis in 2009, Moldova has seen steady GDP growth up until the COVID-19 pandemic. Of significant note is that Moldova showed continued growth rather than ups and downs experienced in most impoverished nations. Moldova’s commitment to attaining the United Nation’s Millennium Development Goals and effectively using guidance from the World Bank and IMF are reasons for this growth. Responsible governance and low corruption were instrumental in ending extreme poverty in Moldova.
  • Moldova’s workforce lowered from 2007 to 2014, primarily due to migration; however, wage growth was significant in jobs outside of the agricultural sector. Growth in food processing, manufacturing and ICT industry jobs increased wages exponentially, while the agricultural sector still struggled. These higher-skill jobs are attributable to the country’s focus on improving secondary education access, as outlined by the IMF, providing upward mobility.
  • Responsible pension disbursement was a chief agent for ending extreme poverty in Moldova. The significant increase in distributions to aging rural citizens living in extreme poverty was an essential investment by Moldova’s government.
  • The World Bank also found that after the economic crisis, remittances from Moldovan migrant workers sent back disposable income. Most of these migrants were from low-income rural areas of Moldova. From 2007 to 2014, rural households’ disposable income from migrant transfers rose from 16% to 23%. In Moldova, remittances played a considerable role in poverty reduction.

Using Moldova as a Blueprint Worldwide

Evaluating the success in ending extreme poverty in Moldova helps pave the way to implement similar strategies globally. So, what is the blueprint for ending extreme poverty?

  • The most crucial aspect is government accountability and a strong commitment to attain Millennium Development Goals. Strong oversight to prevent corruption and ensure fiscal responsibility to follow through with plans laid out by organizations like the United Nations, the World Bank and the IMF.
  • A commitment to make secondary education more accessible, especially in rural areas, advances what a nation’s workforce is capable of and helps create job and wage growth.
  • Protecting vulnerable populations by distributing funds where they are most needed reduces extreme poverty.
  • The success of remittances in Moldova is a necessary imperative. An analysis across countries worldwide shows the significant poverty reduction effects of remittances

Ending Extreme Poverty by 2030

The U.N. aims to end extreme poverty by 2030, and when looking at Moldova’s success, it is not an outrageously unrealistic goal. With fiscal oversight, dedication to protecting the impoverished and the world’s willingness to engage, extreme poverty can be eradicated.

– Zachary Kunze
Photo: pxfuel

reducing Rural Poverty In ChinaChina has made significant strides in poverty reduction in the previous three decades due to a combination of economic reforms and national poverty reduction programs. Experiencing a significant growth in the nation’s GDP that resulted in the rise from a low-income country to an upper-middle-income country, the percentage of individuals living below the poverty line has decreased from 88% in 1981 to 1.7% in 2018. However, in 2016, 43% of the rural population lived below the national poverty line, many of them smallholder farmers. Recognizing the importance of agricultural development opportunities among rural populations, the Chinese government approved IPRAD-SN, (Innovative Poverty Reduction Programme: Specialised Agribusiness Development) in Sichuan and Ningxia in 2018, as part of its initiative to eliminate rural poverty. The action plan delineates development strategies for increasing agricultural capacity, thus reducing rural poverty in China.

Constraints for Rural Chinese Farmers

Living in the Sichuan or Ningxia province provides pristine mountain views and unparalleled landscapes but it also presents constraints. Approximately 6.5 million individuals in Sichuan and 840,000 in Ningxia live below the national poverty line. Infrastructure problems concerning irrigation, drainage, cattle sheds and roads, inhibit farmers from increasing their production capacity and quality. For instance, in the Ningxia village of Naihe, livestock buildings or cattle sheds offer limited space for farmers to raise their animals. This prohibits any increase in livestock quantity, which in turn constrains profit growth and renders farmers unable to generate sufficient funds to build improved infrastructure. Lack of access to market, value chain and financial resources also threaten ambitions for economic expansion in these rural, remote regions. Each of these variables contributes to the difficulties in reducing rural poverty in China.

Innovative Poverty Reduction Programme: (IPRAD-SN)

China’s Ministry of Agriculture and Rural Affairs joined with the United Nations’ International Fund for Agricultural Development in order to formulate the six-year IPRAD-SN program that strives to directly improve the lives of 198,847 individuals in Sichuan and Ningxia. The program prioritizes local empowerment with the following two focuses that assist in reducing rural poverty in China: infrastructure and sustainability and value chain inclusion.

  • Infrastructure and Sustainability: Adequate supply systems are an essential component of spurring economic growth in these communities. Providing electricity, potable water, irrigation for crops and durable roads are important aspects of the plan’s infrastructure component. In addition, the program incorporates land restoration and climate-conscious agricultural techniques in order to ensure sustainability.
  • Value Chain Inclusion: By increasing market capacity, asset availability and access to financial services, the plan strives to incorporate smallholder farmers, cooperatives and agro-enterprises into “pro-poor” value chains. Strategies include enhancing the technological and organizational skills of cooperatives, funding business plans that target poverty reduction and helping local financial institutions cater their services to the needs of the community.

Tracking Success

IPRAD-SN aspires to lift 50% of the provinces’ impoverished out of poverty upon its completion. In order to ascertain progress, the plan delineates key factors to account for during monitoring intervals. These factors include gross per capita income levels, beneficiary totals, women-led cooperatives, breadth and quality of road networks, production levels, sustainable farming practitioners and individuals with access to post-production amenities.

In the Ningxia province, the implementation of this plan has already modernized irrigation systems and improved water access for livestock. Additionally, silos have been constructed in order to ensure weather-resistant protection for crops and animal feed and livestock provisions such as cattle sheds have been refurbished. In improving the care of livestock, farmers are better equipped to breed and sell their animals. Each of these developments places farmers in a position to improve agricultural quality and quantity and thus increase profit generation.

Agriculture is a vital component of China’s economy, accounting for 9% of the nation’s GDP and 33% of employment. Providing tools at the local level enables farmers to cater the plan’s strategies to their needs and create effective projects. By investing in these individuals, IPRAD-SN is making advancements in reducing rural poverty in China.

– Suzi Quigg
Photo: Flickr

Garment Industry in Nepal
Nepal is one of many developing South Asian countries that plays a substantial role in the global ready-made garment industry. These mass-produced textiles have become a staple export from Nepal, but they have also normalized the unethical practices of fast-fashion chains within the country. Over the last two decades, Nepal has struggled to regulate both economic and ethical issues within the garment industry, but the last few years have produced a shift towards a brighter future for garment workers. Here are six facts about the history of the garment industry in Nepal and the efforts to address both the problems of fast-fashion chains and the country’s economic reliance on them.

6 Facts About the Garment Industry in Nepal

  1. In the 1980s, the garment industry in Nepal boomed because of interest and funding from Indian exporters. Due to the product quota limits in India, exporters looked to Nepal to increase their production. This expanded production served to boost not only Nepal’s economy but also its reach on the global production scale. Thus, Nepal became a viable option for countries to produce and export various textiles.
  2. In 2004, intense competition in the global garment market broke out after the World Trade Organization’s Agreement on Textiles and Clothing expired. Nepal struggled to outproduce their competition and subsequently saw a fall in revenue from garment exports. The Multi-Fiber Agreement, an international trade agreement that allowed duty-free access to the U.S. for Nepal, also fell through in 2005 and further exacerbated the country’s declining international revenue.
  3. The international economic aftermath of 9/11 also negatively affected the U.S.’s reliance on the garment industry in Nepal. The U.S. was the recipient of 87% of Nepal’s readymade garments until 2002. In subsequent years, Europe, Canada, Australia, and India have become the largest markets for Nepali garments, making up 90% of the country’s exports.
  4. In the 2018 fiscal year, the garment industry in Nepal hit a new high. The industry made approximately RS 6.34 billion (approximately  $84.9 million), up 6.52% from the previous year. Despite this rise in revenue, Nepal had exported fewer garments than it had the year before.
  5. Chandi Prasal Aryal, president of the Garment Association of Nepal, claimed that the financial growth was due to a shift from quantity to quality. By focusing on producing better garments instead of more garments, other countries were willing to pay extra for better products. Because of the fine quality of the exports, those same countries are now willing to buy even more of the pricier garments.
  6. The focus on quality over quantity changes the focus of the garment industry in Nepal. Instead of relying on fast fashion practices that prioritize creating as many items as possible within a set amount of time, the industry can now shift to more ethical work forms. Thus, the quality of the garments will continue to improve and raise the value of each item, bringing more money back into the Nepali economy.

The exact reach and impact that the garment industry has had on Nepalese poverty remains unclear, but the future looks bright. The Nepalese government reports that employment data within the garment industry is “not readily available” but at the peak of its power, the garment industry employed 12% of the overall labor pool of the Nepalese manufacturing sector. As of 2019, the World Bank calculates the poverty line in Nepal to be $1.90 per person per day. Nepal lacked substantial policy in terms of a minimum wage, but the Library of Congress reports that since 2016, Nepalese workers across industries now make a minimum wage of approximately $3.74 per person per day. The modern garment industry, regulated with a minimum wage, can help lift Nepalese workers above the poverty line of the country, even if the garment industry of the past once presented a potential hurdle.

There still exists substantial work to transform the garment industry in Nepal into both a thriving industry and an equally ethical one; the country is making the first successful steps towards achieving both. This change will provide garment industry employees a better quality of life, as well as ensure that they and their families receive fair treatment.

Nicolette Schneiderman
Photo: UN Multimedia