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Namibian First Lady Launches ‘One Economy’ Foundation

Namibia_Economy
The First Lady of Namibia, Monica Geingos, established the One Economy Foundation in May of this year. The organization’s slogan, “one Namibia, one Economy,” describes its plans to bridge the gap between formal and informal entrepreneurship in the African nation.

Namibia’s economy has been improving recently, with Bloomberg calling it the top emerging economy in Africa in 2012. However, informal entrepreneurship (unregulated, untaxed commerce operating without contracts or laws) continues to inhibit the country’s growth potential.

According to the Namibian Statistics Agency, the country’s unemployment rate stood at 27.4 percent in 2012. Many of the unemployed opt to work informally, due to significant barriers to entry in Namibia’s formal economy. However, informal work offers little in terms of long-term growth at the individual and national level. This is the problem the One Economy foundation wishes to address.

The One Economy Foundation will focus on entrepreneurship, early childhood development and health. The most crucial components are professional economic coaching and collateral-free lending. These strategies will help young Namibians—particularly those without preexisting connections to the nation’s high-powered financial sector—get a foot in the door.

According to Geingos, “One Economy is about providing fair opportunity. It’s about providing people with talent with opportunity.” She went on to explain that the need for the One Economy Foundation exists at both ends of Namibian commerce, as many enterprising Namibian bankers need the means to tap into the population of informal workers.

Prior to her involvement in the state, Geingos was one of the key figures in Namibia’s growing economy, possessing major holdings in Namibian mining, banking and media corporations. Her most recent endeavors, as a member of the Economic Advisory Council and First Lady, have been part of a larger effort in Namibia’s war on poverty.

The First Lady’s husband, President Hage Giengob, has also made poverty his focus in recent years. Despite a report in the Journal of Economic Structures stating that Namibia has “one of the most unequal income distributions on the African continent,” the President and First Lady remain hopeful that the nation’s wealth can be redistributed to address the nation’s poor.

Late last year, the president declared an “all-out war on poverty,” after receiving an impressive 87 percent of votes in the Namibian general election.

One Economy has already raised over N$4.5 million for implementation later this year.

– John English

Photo: Flickr

Top 10 Reasons Why Female Education is Important

Top 10 Reasons Why Female Education is Important
From Cairo to Beijing, offering quality and universal education to young girls promotes progress for society as a whole. Carla Koppell of the United States Agency for International Development, better known as USAID, even called female education a “silver bullet” for empowerment and progress. To better understand the far-reaching effects of a few books and a classroom, here are the top 10 reasons why female education is important.

The Unmatched Importance of Female Education

  1. Increased Literacy: Of the 163 million illiterate youth across the globe, nearly 63 percent are female. Offering all children education will prop up literacy rates, pushing forward development in struggling regions.
  2. Human Trafficking: Women are most vulnerable to trafficking when they are undereducated and poor, according to the United Nations Inter-Agency Project on Human Trafficking. Through providing young girls with opportunities and fundamental skills, this billion-dollar industry can be significantly undermined.
  3. Political Representation: Across the globe, women are underrepresented as voters and restricted from political involvement. The United Nations Women’s programmes on leadership and participation suggests that civic education, training and all around empowerment will ease this gap.
  4. Thriving Babies: According to the United Nations Girls’ Education Initiative, children of educated mothers are twice as likely to survive past the age of five. Foreign aid for schoolhouses and curriculum development could greatly benefit the East African country of Burundi, where nearly 16,000 children die per year.
  5. Safe Sex: A girl who completes primary school is three times less likely to contract HIV. With these statistics in mind, The World Bank calls education a “window of hope” in preventing the spread of AIDS among today’s children.
  6. Later Marriage: As suggested by the United Nations Population Fund, in underdeveloped countries, one in every three girls is married before reaching the age of 18. In a region where a girl receives seven or more years of education, the wedding date is delayed by four years.
  7. Smaller Families: Increased participation in school reduces fertility rates over time. In Mali, women with secondary education or higher have an average of three children. Counterparts with no education have an average of seven children.
  8. Income Potential: Education also empowers a woman’s wallet by boosting her earning capabilities. According to the United Nations Educational, Scientific and Cultural Organization, also known as UNESCO, a single year of primary education has shown to increase a girl’s wages later in life by 20 percent.
  9. Thriving GDP: Gross domestic product also soars when both girls and boys are being offered educational opportunities. When 10 percent more women attend school, GDP increases by three percent on average.
  10. Poverty Reduction: When women are provided with equal rights and equal access to education, they go on to participate in business and economic activity. Increased earning power and income combat against current and future poverty through feeding, clothing and providing for entire families.

The sustainability and progress of all regions depend on the success of women across the globe. As President Obama said while addressing the United Nations General Assembly in 2012, “The future must not belong to those who bully women. It must be shaped by girls who go to school and those who stand for a world where our daughters can live their dreams just like our sons.”

– Lauren Stepp

Sources: PRB, U.N. Women, CFR, World Bank

Photo: Flickr

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Teaching Self-Reliance Worldwide

Self_Reliance_Worldwide
The ultimate goal of charitable aid for the poor should be to help recipients become self-reliant. Teaching self-reliance worldwide means that individuals will no longer need to depend on outside sources to live without the immediate threat of disease and starvation. Achieving self-reliance leads to stability and sustainability.

Many programs try to accomplish this vision by teaching families valuable skills such as efficient farming techniques and literacy. Evidence has shown that these methods are less costly and have a more permanent influence on the communities where they are implemented.

The Church of Jesus Christ of Latter Day Saints teaches self-reliance worldwide.  It attempts to help struggling families achieve this goal by teaching them effective ways to seek employment, manage their time and money, start small businesses and develop leadership qualities.

Volunteers travel to countries in Latin America, Africa, Asia, and Europe to teach free classes and help their students achieve personal goals. These volunteers range from college students to elderly couples, each of them donating up to two years of their lives to support these struggling communities.

The success stories of this program are as diverse as its students. One participant from Ghana, Irene, is a single mother of four children. She uses an old hand cranked sewing machine as her primary source of income. Carrying the sewing machine on her head, Irene goes from house to house and offers to sew traditional Ghanian dresses.

Irene says the classes help her learn how to network and communicate with customers. It has also helped her learn new business strategies, such as going to a busier public place to advertise her services. Most importantly, the classes have taught her how to manage her money and set aside amounts for future growth.

Although she has not even finished the program, Irene has said that her income has already grown noticeably. The economic benefits of teaching self-reliance worldwide could be staggering.

Another student, Susy, uses a small van to transport neighborhood children to and from school. Her business is still small, but LDS’ Self-Reliance has opened her eyes to many aspects of business management, such as record keeping and improving capital. Susy now has plans to work toward buying a larger van to transport more children. She also hopes to expand her business to include day care services.

The employment techniques offered in the Self Reliance classes have also proved incredibly useful. One student, Rafael, had been unemployed for seven months before setting foot in the Self Reliance Center. Volunteers taught him the importance of accruing multiple sources of information, making as many contacts as possible and setting up interviews.

Within six days, Rafael had found a job. “It was a miracle,” he says in an interview produced by the Self Reliance program. “My wife is very happy… I can now provide for our home and our children.”

– Emiliano Perez

Photo: Wikipedia

Reducing Poverty: Lessons Learned from Peru

reducing poverty

According to the World Bank, one in five people in Latin America are chronically poor.

Brazil, in particular, continues to face economic and political instability which has impacted the country’s ability to fight poverty. “We don’t have data for 2015, but we know there is an important economic crisis, with a recession and unemployment rise, and it is very likely that will negatively impact on poverty numbers,” said Alicia Barcena, head of the U.N.’s Economic Commission for Latin America and the Caribbean (ECLAC) in a Voice of America article.

Regionally, the poverty rate averages 21 percent with some countries recording poverty rates as low as 10 percent (Uraguay, Argentina and Chile) and others like Nicaragua, as high as 50 percent.

However, one of the greatest success stories is Peru, where the poverty rate declined from 54.7 percent in 2001 to 22.7 percent in 2014.

According to World Bank research, there are two key reasons that Peru has seen its poverty rates decrease — economic growth and sound fiscal policies. Much of this growth comes from an increase in exports, particularly of metals like gold and copper.

However, while Peru has been successful at reducing poverty, there are lessons that can also be taken away from its shortcomings. “Leaders must improve their ability to deliver services to the poor. Without improved capacity for quality delivery, even the best policies will mean little to their intended beneficiaries,” said World Bank President Jim Yong Kim.

Peru needs improvements to its infrastructure and social services, as the gap between rural and urban areas remains significant. The World Bank has helped to address these issues by “supporting the government in improving equity through social services, infrastructure and competitiveness, while continuing to preserve macroeconomic stability”.

It is hoped that other Latin American countries will take a cue from Peru when it comes to reducing poverty and securing sustainable futures for families and communities.

– Emily Milakovic

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How Extreme Poverty Decreased 80 Percent Since 1980

Poverty_foodIn a recent TED talk, Arthur Brooks, president of the conservative think tank, the American Enterprise Institute, discussed the need for ideology to be put aside when assisting those in destitution.

Originally from Seattle, Brooks dropped out of college early in his life to become a professional French horn player. His curiosity about a 1970’s National Geographic cover led him to research the fight against poverty.

He found that “there’s been an 80 percent decline in the world’s worst poverty,” which can be defined as those living on less than a $1.25 a day. Brooks attributes the improvement of 2 billion lives to the economic power provided by the capitalist system, a “policy” that both conservatives and liberals can get behind.

In his presentation, he highlighted five main reasons why capitalism provides the best environment for growth and prosperity: globalization, free trade, property rights, rule of law and entrepreneurship. All of these aspects of a free market emphasize economic freedom in the lives of the people who live under it.

“Capitalism is not just about accumulation,” he said during his talk. “At its best, it’s about aspiration.” Most important of all, economic freedom is something that both parties can get behind and support. It was, after all, President Obama who uttered the conservative’s favorite quote: “Free markets have created more wealth than any system in history. They have lifted billions out of poverty.”

While studies have shown that liberals and conservatives focus on different political topics, their affinity for free markets should still unite them against poverty and for freedom. Psychologists have identified a phenomenon called “political motive asymmetry” where individuals think their ideology is motivated by love and the opposite is motivated by hate.

Evidence provided by a U.N. study and a Fraser Institute study indicates that poverty decreases when economic freedom increases. More specifically, the U.N. report highlighted a 25 percent decrease in the number of people in extreme poverty between 1981 and 2005. At the same time, the Fraser Institute reported a 29 percent increase in economic freedom from 1980 to 2013.

Brooks continued his speech by challenging both liberals and conservatives to embrace arguments that they might typically be opposed to hearing. “I’m asking you and I’m asking me to be the person specifically who blurs the lines, who is ambiguous, who is hard to classify,” he says. Ending the divisiveness of the party system is only possible with divergent ideological thinking.

The current political environment in the U.S. can often limit the government’s ability to fight global poverty. Bipartisanship means compromise. In order to assist millions of those in extreme poverty, the mobilization of relief must come from both sides with productive dialogue and a collaborative attitude.

– Jacob Hess

Photo: Flickr

Empowering Women Through Technology

Empowering Women

Information and communications technology is a thriving industry with several opportunities for women. Yet according to Judith Owigar, a founding member of Akirachix, a training and mentorship program aiming to increase the number of girls in the technology sector, women in the developing world don’t seek this industry due to reasons like cultural barriers.

“ICT is a growing industry and it’s hiring a lot of people,” she told Africa Renewal’s Jocelyne Sambira in an interview. “Many girls have not taken advantage of this opportunity due to various reasons such as cultural barriers. Others do not have the minimum education required or they just don’t think ICT is their thing. We need more women to seize these opportunities because it can improve their lives.”

Akirachix prepares many women to start their own businesses. The organization states, “technology empowers the people who use it to create solutions for themselves.”

Not only is it important for gender-equality purposes to encourage women’s participation in ICT, but also for working women to invest their incomes in areas that have fundamental implications for development.

For instance, ONE is an organization advocating for poverty eradication and claims that women invest 90 percent of their earned income on their families. The organization also writes that a survey of women in the developing world showcases that 75 percent of women use the Internet to further their education.

Helena Contes of One policy claims that providing training in technology skills for women is vital to diminishing the digital divide. She states that empowering women begins with a holistic approach to the problem, and by introducing women to technology at a younger age.

Addressing the digital divide can help when dealing with social and economic inequalities and accelerating development. Technology provides a channel for learning and creativity, and is an essential tool for ensuring women’s progress in all spheres of daily life.

– Mayra Vega

Sources: U.N., Pew Global, Akirachix
Photo: Flickr

Five New Cosponsors of the Global Food Security Act of 2016

Global Food Security Act

In February 2016, there were five new co-sponsors of the Global Food Security Act of 2016. Currently, this legislation has 120 cosponsors in the House of Representatives made up of 80 Democrats and 40 Republicans. In the Senate, there are 10 cosponsors, five Republicans and five Democrats.

The new cosponsors of the Global Food Security Act of 2016 are Representatives Curtis “Curt” Clawson, Norma Torres, Frank LoBiondo, Charles “Charlie” Rangel and John Kline.

Rep. Curtis “Curt” Clawson, (R-F.L.) and Rep. Norma Torres (D-C.A.), cosponsored this legislation on Feb. 1, 2016.

Rep. Frank LoBiondo, (R-N.J.) and Rep. Charles “Charlie” Rangel (D-N.Y.), co-sponsored the Global Food Security Act of 2015 on Feb. 23, 2016. Rep. Rangel was mentioned as one of the original cosponsors of an earlier version of this bill, Global Food and Security Act of 2013 (H.R. 2822), in a press release from Rep. Betty McCollum (D-M.N). The earlier version of this legislation died in a previous Congress.

Rep. John Kline (R-M.N.), who signed on as a cosponsor at the end of the month, wrote an op-ed for the Kenyon Leader stating he will continue to work with colleagues on both sides of the aisle until his retirement at the end of the year.

The Global Food Security Act of 2015 (H.R. 1567 / S. 1252) is a bipartisan bill designed to help developing countries reduce global poverty and hunger, especially for women and children. According to the legislation’s text, it’s purpose is to achieve sustainable agricultural-led economic growth and to build resilience among vulnerable populations.

These goals would be accomplished by requiring the President to create a global food security strategy to fight global hunger, improve coordination with all relevant federal departments and agencies and establish meaningful monitoring and evaluation systems to track performance.

In addition, the bill also aims to improve coordination with outside organizations, such as U.S. universities, faith-based organizations, the private sector and host countries.

This legislation builds on the success of the Feed the Future initiative by continuing crucial investments in poor, rural farmers. Since its inception in 2009, Feed the Future has worked to increase agricultural productivity and generate opportunities for economic growth in developing countries.

The initiative also helps to boost harvests and incomes of small rural farmers, improve agricultural research and development and increase resilience to prevent recurrent crises so that communities can rebound as quickly as possible.

– Summer Jackson

Sources: Bread for the World, Congress, Feed the Future, Govtrack, Govtrack, Congresswoman McCollum, The Kenyon Leader, Representative Torres
Photo: Wikipedia

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Where is Mogadishu?

MogadishuLocated in a country right in the Horn of Africa, Mogadishu or Xamar, the capital of Somalia, is the largest city and seaport in the country. The city lies north of the equator on Somalia’s coast on the Indian Ocean.

Considering its location, it is not surprising that Mogadishu was Somalia’s major port for centuries and has since served as the commercial and financial center of the country. Previously known as the “White Pearl of the Indian Ocean,” the city has undergone much turmoil, given its conflicts between competing warlords and various militias until 2006.

Mogadishu started to expand steadily in 2010 with the election of a new technocratic government and the start of federal control of the city. In 2013, Mogadishu’s population was estimated to be around two million people.

At present, the people of Mogadishu can look back at the past and see how far their city has come — from the days of war, when women were forced to wear niqabs and children were not allowed to play football on the streets, to present times, when women can wear modern clothes under their abayas.

2016 is a very important year for the city of Mogadishu and Somalia as a whole because of its upcoming presidential election. This is not just an ordinary presidential election because this could be the first time a woman holds the top job in the country.

Somalia’s first female presidential candidate is Fadumo Dayib, the daughter of Somali parents who was born in Kenya but grew up in Somalia and Finland. Though Fadumo did not learn to read and write until the age of 14, she managed to earn a master’s degree in health care and public health.

During the time she worked with the United Nations, she realized her passion was to do more to help Somalians.

From the perspectives of Somalians like Fadumo from the diaspora, returning to their country, Mogadishu is growing very quickly. As described by Laila Ali in the Guardian, Mogadishu is becoming like “Manhattan or Central London…new buildings and businesses are emerging from the carnage and lawlessness that pervaded the East African country for more than two decades.”

Mogadishu is rising from the dust after 23 years of conflict and is growing at a rate of 6.9 percent as the world’s second fastest growing city. Despite its horrid past, this “White Pearl of the Indian Ocean” is surely making steps in the right direction due to an improvement in its security situation and economic pursuits.

– Vanessa Awanyo

Sources: Nations Online, The Guardian 1, BBC, Fortune of Africa, The Guardian 2
Photo: Flickr

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Millennium Challenge Corporation Seeks Expansion

Millennium Challenge Corporation
The Millennium Challenge Corporation (MCC) is seeking approval from Congress to expand its operations over the coming years via the Millennium Compacts for Regional Economic Integration (M-CORE) Act.

In a recent testimony before the Senate Foreign Relations Committee, MCC CEO Dana Hyde argued that the organization would be more effective if given the authority to make regional investments, in addition to the single-country investments it is currently authorized to make.

“By making coordinated regional investments across multiple eligible countries, MCC can help countries work together to build and grow regional markets…and help generate new business and market opportunities for U.S. and other companies,” Hyde said.

The MCC has a singular mandate: reduce poverty through economic growth. The organization does this by initiating joint public-private investment projects in countries working toward democratic governance, open markets and human development.

Since its creation in 2004 by President Bush, the Millennium Challenge Corporation has committed $10 billion in over 58 projects in 25 countries. Around 70 percent of this investment has gone into infrastructure projects like highways and ports and an increasing percentage is being invested in energy.

The organization is currently only allowed to initiate projects within single countries, which, according to Hyde and other experts, is an impractical development strategy.

According to Hyde, countries cannot develop economically if they are unable to trade with their neighbors. Regional projects like cross-border highways and railways could make a bigger impact – especially among groups of small states.

“It’s easy to think about how regional engagement might be beneficial in the context of electricity,” said Center for Global Development President Dr. Nancy Birdsall. “The logic of a shared grid across borders is clear. To work, countries involved need to commit to a strong regulatory and financial structure outside the auspices of a single government for power trading and pricing.

However, initiating projects across multiple countries also poses a number of challenges. One such challenge occurs because neighboring countries are often not at the same level of development. For example, if the MCC wanted to begin a project across two countries, one may meet the required indicators for open governance and human development while the other might not.

The organization currently bridges this gap by undertaking threshold programs designed to assist near-eligible countries to become ready for investment.

Now, it wants the additional authority to conduct threshold programs at the same time it begins investment projects – meaning countries can begin projects before they are fully eligible to do so.

It may seem counter to MCC’s mandate, but Hyde argued that it is a necessary.

In her testimony, Hyde said the Millennium Challenge Corporation has a proven record of implementing successful country projects and is well equipped to take on the challenges of regional investments without straying from its mandate.

– Ron Minard

Sources: American Progress, Senate.gov 1, Senate.gov 2, MCC
Photo: Wikipedia

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Creative Industries Offer Economic Opportunity

Economic_Opportunity_in_AfricaWhen it comes to creating jobs and economic opportunity in Africa, industries such as agriculture, mining and oil typically receive the most attention and investment from governments.

However, the cultural and creative industries are consistently overlooked as viable avenues for economic growth. These industries include food, film, fashion, textiles, literature, music, performing/visual arts, museums and more.

Africa is no exception to the massive potential benefits that these industries could yield. The recent worldwide growth of tourism serves to further generate increased exposure and outside interest as well.

Further, the labor-intensive aspect of the creative industries offers an opportunity to generate more skilled and unskilled jobs. Additionally, this is a sector where modern technology can be adopted at a relatively low cost of investment.

Though there is no shortage of creative talent in Africa, there are logistical and infrastructural obstacles.

These barriers include a lack of skilled managers and industry professionals, lack of avenues for training artists’ technical competence, poor packaging and lack of standardization of cultural products, and poor distribution systems.

In order to move forward, governments will need to increase investments and implement relevant policies for the cultural and creative industries. An increase in economic opportunity in Africa through the arts requires government support.

Global and regional supply chains across the continent should also be built that will, in turn, create new trade patterns for African economies. For this to happen, there needs to be increased collaboration between global and Africans brands, designers/manufacturers, and development partners and governments.

Though there is a lot of work to be done, recent developments point to the strong possibility of incoming progress in the future.

Efforts to direct focus to the arts and address obstacles have recently emerged. For example, at Economic Community of West African States (ECOWAS) stakeholder meetings in May 2015, the fifteen member states were urged to shift their focus from timber, cocoa and mineral exports to the introduction of relevant policies and funding for arts and cultural industries that will generate new economic opportunity in Africa.

In addition, ECOWAS members were called upon to support artists with training and offer them opportunities to collaborate with international partner organizations to help quality, standardization and packaging.

Further, the African Development Bank’s Office of the Special Envoy on Gender (AfDB) launched several initiatives in 2015. Such initiatives included Fashioeconomics, an event which brought together fashion designers and development partners to talk about the challenges of securing financing to build up the sector.

Additional forums and events regarding the fashion industry have also taken place, with participants highlighting the needs for innovative financing mechanisms to provide incentives to grow the industry.

Participants also highlight the need for fresh approaches to scale up African design firms through entrepreneurship, training and skills development, and boosting access to finance and global markets.

– Anton Li

Sources: The Africa Report, XinhuaNet, Daily Nation, African Development Bank Group (AFDB)
Photo: Flickr