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Government-Approved Hemp Production in Pakistan

Hemp production in PakistanIn September 2020, the Pakistani Government approved industrial hemp production, legalizing hemp and allowing hemp farming in agricultural sectors. Hemp is a type of cannabis plant, used commonly for medicinal purposes due to its cannabidiol (CBD) concentration. Considering the many benefits of hemp production, this landmark decision brings exciting possibilities for many areas in Pakistan. Since the economy of Pakistan has been long in need of a boost, the new approved hemp production and legalization is said to bring economic benefits to the country.

The Economic Benefits of Hemp Production

Officials in Pakistan’s government encouraged hemp legalization and production in efforts to relieve fiscal deficits and Pakistan’s struggling economy. Considering the industrial hemp market is worth about $25 billion globally, Pakistan’s science and technology minister, Fawad Chaudhry, says Pakistan is aiming for a profit of $1 billion over the next three years by joining the global hemp market. Exports in hemp can target CBD oils and cannabis-based products and can be a sustainable cotton replacement during slowdowns within the cotton industry.

A Sustainable Replacement for Cotton

Hemp production in Pakistan is most exciting to the workforce, especially for farmers participating in hemp markets and those working within the cotton industry. Cultivating hemp will create more jobs for the small-scale farmers responsible, but more importantly, become a sustainable replacement for cotton in Pakistan’s markets. As the fourth biggest cotton producer in the world, Pakistan’s cotton production has been declining due to climate change, water scarcity, locust attacks and industrial imbalances such as declining prices and low-grade seeds. The hemp plant’s stalk has strong properties of cellulose-rich fiber which is an effective ingredient in the making of paper, rope, construction and reinforcement materials, due to its strong fiber components. Hemp, therefore, makes for a worthy sustainable replacement to cotton.

Hemp Research Possibilities

For researchers, hemp production in Pakistan is exciting for many reasons. With the new hemp legalization, hemp research is no longer taboo, according to Muhammed A. Qayyum, an advisor in the Pakistani government and the director of Medics Laboratories. With this new allowance, researchers can delve into more potential applications of hemp in medicine and more.

Medicinal Properties of Hemp

Advocates have listed numerous medicinal properties to hemp, more specifically, the chemical cannabidiol (CBD) within the plant. Cannabis is seen as medically beneficial as the cannabinoid compound is said to relieve pain and regulate appetite, mood, memory inflammation, insulin sensitivity and metabolism. Hemp is also a valuable food supplement, incorporated in gluten-free products to increase nutritional value from hemp’s high levels of fiber and proteins.

The Potential of the Hemp Industry in Pakistan

With this new federal approval, Pakistan can enter global markets as a new exporter of CBD with the ability to generate millions of revenue similar to China, the United States and India. Hemp production in Pakistan opens up a wide range of possibilities but also brings thousands of jobs across multiple fields such as farm work, production, marketing, transportation, research and medicine. As a flexible crop, the hemp market can address several demands, from textiles, clothing, home furnishing and industrial oils to cosmetics, food and medicine.  Holding an overall market value of more than $340 billion and 263 million cannabis consumers worldwide, Pakistan’s economy can shift dramatically with the newly approved hemp production.

– Linda Chong
Photo: Flickr

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Why Countries Should Be Investing in Brazil

investing in BrazilThere are numerous reasons to invest in foreign aid in general. That can include partaking in growing the global economy, promoting international human rights and opening donor countries to potential investment returns. What makes Brazil a particularly good market to invest in is its promising role in the global economy. There are several reasons why investing in Brazil is beneficial.

COVID-19 Response

As of January 2021, Brazil has the third-most COVID-19 cases worldwide. The Brazilian economy was not in its best shape at the start of the pandemic because it has not fully recovered from the 2014-2015 recession. This made the economy vulnerable to precarious economic shocks that resulted in increased poverty, unemployment and small business fragility.

The COVID-19 pandemic has left countries like Brazil with possible lasting economic damages. Many emerging and developing countries rely heavily on foreign aid for financial and humanitarian support. Offering foreign aid to Brazil will not only help pave the way for a domestic post-COVID recovery but also alleviate some of the negative impacts of the pandemic through humanitarian benefits.

Diversified Opportunities in Emerging Markets

The Brazilian economy is classified as an emerging market. Emerging markets are economies that are transitioning into a developed economy. Since the launch of the MSCI Emerging Market (EM) Index in 1988, which measures portfolio performances of emerging markets, investing in emerging countries proved to create new and diversified opportunities outside of common markets.

Market Expansion and Economic Growth

Since 2016, Brazil has shown an increase in GDP growth with approximately a 1.3% increase. In 2020, Brazil fell back into recession because of COVID-19. However, Brazil’s economy displayed growth and has played an important role in the growth of the Latin American economy as it makes up 35% of the Latin American GDP. It is approximated that the Brazilian market reaches 900 million consumers in just the Americas.

On how quickly the Brazilian economy rebounded, Bloomberg reports boosted domestic demand and exports with a 9.47% rise in economic activity index from July to September of 2020 in comparison to the previous months.

As Brazil recovers from COVID-19’s economic impact, it leaves opportunity for foreign investors to take advantage of Brazil’s growing market, especially with its low interests. Some of Brazil’s profitable sectors include real estate and agricultural goods like coffee, sugar cane, corn and soybean. Participating in these sectors expands Brazil’s domestic market and hence the world market size.

Geographical Location

Especially for the United States, Brazil’s proximity allows easier trade. For other advantages, Brazil’s geographical properties for the agriculture sector also make its commodities attractive. Approximately 28.7% of land is used for agricultural production which makes up more than 4% of the annual Brazilian GDP. Following China, the United States and Australia, Brazil has the fourth-most amount of agricultural land.

Foreign Investment Returns

Encouraging enterprises to invest in foreign aid can ultimately result in great returns. A common type of foreign aid for these corporations is Foreign Direct Investment (FDI). Through FDIs, corporations can potentially gain lasting interests, multinational consumers and flexible production costs. This type of foreign aid also brings developing countries like Brazil innovative technology, investment strategies, jobs and infrastructure from investing corporations of developed nations.

Foreign investment is critical to developing and emerging markets. Investing in Brazil promotes development and sustainability and also benefits foreign investors greatly. Furthermore, foreign investment assists economic recovery following unforeseen economic shocks like that of the COVID-19 pandemic.

– Malala Raharisoa Lin
Photo: Flickr

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5 Innovative Ukrainian Inventions

Ukrainian InventionsUkraine is the second poorest country in Europe, with a per capita GDP of less than $3000. Ukraine had a difficult time rebuilding its economy after the collapse of the USSR in 1991 and was left with a crumbling economy due to corruption, poor infrastructure and many other factors. Despite the shortcomings of Ukraine’s economy, it has shown incredible potential for innovation and ingenuity because of the high-tech inventions that have come out of the Ukrainian workforce. Increased investment in Ukrainian inventions would drive it to success and improve the economy by creating stable work conditions. Improving infrastructure and creating sustainable job opportunities would help the economy grow and help Ukraine continue making world-renowned inventions.

5 High-Tech Ukrainian Inventions

  1. Grammarly: Grammarly was founded in Ukraine by Alex Shevchenko and Max Lytvyn in 2009. Grammarly uses AI software to proofread text on sites like Google, LinkedIn, various social media sites and more, while offering grammatical corrections. It is now a U.S.-based company and a widely popular tool for producing academic papers, professional documents and other bodies of text.
  2. Snapchat Filters: Snapchat filters and lenses first came about when Snapchat acquired Ukrainian startup, Looksery. Looksery is a facial recognition software that allows users to put filters on themselves while video chatting. Looksery was bought in 2015, started by a Ukrainian team with Victor Shaburov as the CEO. Snapchat uses the technology to create its filters, one of the many successful and important updates to the social media app. Instagram, another social media app, followed in the footsteps of Snapchat and introduced a version of Instagram photo filters in 2018.
  3. Apps for Deaf People: BeWarned, a Ukrainian-based startup co-founded by Vitaliy Potapchuck, is an application that people who are deaf can download on their phones to help them communicate with others. Potapchuck is also deaf and designed the app to pick up possible dangerous sounds and call for emergency help. BeWarned also makes other software for those who are deaf and hard of hearing.
  4. Virtual Reality Gloves: In 2016, a Ukrainian team of engineers created a prototype virtual reality glove that allows users to “feel” virtual reality items as if they were real. The glove mimics real-life hand motions and is used for a variety of things besides virtual reality gaming. Healthcare professionals can use the glove to study mobility and disease treatments. Co-founder, Denis Pankrushev, wanted the technology to “open new horizons for mankind.” This opened doors for virtual reality innovation and put Ukrainian technology startups in the spotlight.
  5. Uber for Yachts: The company CharterClick was started by three Ukrainian immigrants in Dubai to provide an easy way to rent a boat or luxury yacht for events. The team created CharterClick to show that complicated tasks like renting an expensive cruise with a full crew, can be completed in a short amount of time with just a few clicks. The service operates in more than 40 countries and is dubbed “the world’s most convenient vessel booking service.”

Ukrainian Inventions: Potential for the Economy

Ukraine ranked second place in the Top Three Innovation Economies by lower-middle-income group according to the Global Innovation Index. It is also ranked 45th in the world by the Global Innovation Index. There is massive potential for Ukrainian technology to continue its path of innovation and unlock itself to the European market. International investment can help improve the poor infrastructure that drives creative minds and job opportunities out of the country.

Google Ukraine’s CEO recognizes the brilliant minds of the country, but notes that many of them choose to work in the U.S. because of more “favorable conditions.” Favorable conditions include better infrastructure, better pay and a market that attracts investors. Ukraine is closed off to the international market because of its poor societal conditions, which is detrimental to its working-class and the overall economy.

How Supportive Infrastructure Will Improve the Economy

Ukrainian infrastructure is one of the main reasons that working in the country is difficult. The majority of the roads in Ukraine are too poor to carry cargo and passengers, limiting trades in the country and making it difficult to get to work. Ukraine has set an infrastructure plan for 2030 that includes improvement of all transportation systems with a high price tag. Over the next 10 years, Ukraine requires up to $25 billion of investment to complete the plan as it can only fund $.1.5 billion per year on its own.

Transforming Ukraine: Inventions and Infrastructure

Putting technological growth in the spotlight will attract more investors that want to see the Ukrainian technology sector thrive. Much-needed funding can come from international attention to the infrastructure problem. Improvement will create construction job opportunities and motivate the government to tend to the sectors that are struggling.

Ukrainian inventors should be able to work in their own country without having to migrate to another. Not to mention that infrastructure improvement will help many other citizens easily find work and improve the economy. Ukrainian inventions have the potential to kickstart the country’s economy and help with its development.

– Julia Ditmar
Photo: Flickr

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Harnessing the Economic Potential of Young People

Economic PotentialThe U.N. and the International Labor Organization (ILO) have announced that they are spearheading a new program to jump-start employment opportunities and economic potential for young people across developing countries over the coming years.

The U.N. Global Initiative for Decent Jobs for Youth is a joint undertaking by 19 international organizations to increase access to decent work in agriculture and the rural economy for young adults under 24.

According to a recent report from ILO, this cohort accounted for 37 percent of the 200 million globally unemployed population in 2014. U.N. officials say filling this productivity gap will be critical to achieving the goals of the 2030 Agenda.

“This is a historic step forward to recognizing the role and potential of young people in the world today,” said U.N. Deputy Secretary-General Jan Eliasson. “Employment, decent work, particularly for young people, is the backbone of development and stable societies.”

Through the initiative, the ILO will work with experts to come up with innovative solutions to youth unemployment. It will bring together world and industry leaders to turn these ideas into improved national and regional policies. It will mobilize new and existing financial resources to turn these policies into action across developing regions.

Across sub-Saharan Africa, the agricultural sector employs nearly 60 percent of the total labor force but contributes only 25 percent of the region’s GDP. Experts say this shortfall in productivity is actually an area of great economic potential for young people.

“Although farming is now often done by the elderly, the profession’s requirements for energy, innovation, and physical strength make it ideally suited for those in the 15 to 34-year-old age range,” the World Bank said in its report: “Agriculture as a Sector of Opportunity for Young People in Africa.” With proper investment in training and technology, the rice industry alone could have the capacity to employ 17 million young people each year.

The World Bank estimates that if the employment initiatives are successful, the agricultural sector in sub-Saharan Africa could be worth $1 trillion by 2030. If similar improvements to economic potential can be made in other developing regions, the 2030 Agenda may well be achieved.

– Ron Minard

Sources: ILO, FAO, UN 1, UN 2, UN 3
Photo: Flickr

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What is Adeso?

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One of the more promising pieces of information being realized in the developing world deals with the immense economic potential of Africa. Already, the United States is beginning to see the nations there as equal partners in world economic affairs, and this isn’t by accident. Briefly, continued attention from nongovernmental aid organizations including the United Nations in conjunction with individual developments in Africa has, over years, vastly increased the capacity of Africans. People all over the continent are slowly winning the war against poverty. In a recent trip to the continent, President Obama made known the intention of the United States to become a global economic partner to help Africa realize its potential and rise up out of its poverty-stricken circumstances. Specifically, Mr. Obama touted the “Power Africa” initiative which would support the proliferation of electricity in the sub-Saharan region.

While the President did not visit Somalia during his trip, the progress made there captured his attention. Somalia is going through many of the same difficulties that plague other African countries such as drought, civil unrest, and economic conflict. With a lack of education and training, the people of Somalia struggle to overcome these situations.

Thankfully, with the help of the organization Adeso: African Development Solutions, many were able to escape their circumstances and become models of the immense potential Somalians hold.

Adeso has more than 20 years of history in Africa, being registered as a nonprofit group in Kenya, the United States, and England and Wales. They focus on garnering results by using the resources and processes that are familiar and accessible to those they are helping; drawing a solution from within a community. This is done with humanitarian aid, skill building, policy change, fostering communication, and working to bolster local economies.

A three year project undertaken in Somalia aimed at building entrepreneurship recently yielded very positive results. Adeso, using it’s Bakool Entrepreneurship Skills Support Action (BESSA), was able to help people diversify their skill sets and thereby increase income. Adeso helped to link national markets and gave farmers and small businesspeople more options in their work. Community-based groups taught new skills and literacy to people, increasing their capacity and understanding of the changes. The outcomes included households that were ready for economic shock, more steady incomes, and more mobility for women who now have more options and buying power.

Increased business is guaranteed to help the Somalian economy, especially in the wake of civil unrest. Despite lack of national cohesion and infrastructure, entrepreneurship can be a tool for uniting people. Mohamed Ali, a Somali refugee who has since returned to his homeland, has started the Iftiin Foundation to promote business values much like Adeso has. Citing that many Somalis are young and unemployed, building those skills and capacities early will promote peace and prosperity. Somalia has much to look forward to with partners like Adeso and the Iftiin Foundation.

– David Smith

Sources: Obama in Africa Adeso All Africa
Photo: Facebook