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National Governments Fight EU Youth Unemployment

EU Youth UnemploymentIn 2019, the EU youth unemployment rate was at its lowest point in the last 10 years. More than 3.3 million young people (aged 15-24 years) were unemployed that same year, but compared with the previous year (2018), the situation looks much better. In 2018, more than 5.5 million young people were neither employed nor enrolled at an educational institution or training program. This vital change is achieved thanks to multiple EU policies and tools. It provides proper training and education, prepares youngsters for the labor market and gives them the chance to be competitive and successful. However, it is important to notice that youth unemployment is 10 points higher than the average and there is a lot more space for improvement.

EU Youth Unemployment: Social and Economic Impacts

Eurostat reports show that EU youth unemployment rates are much higher than unemployment rates for all other age groups. In January 2019, jobless men and women above the age of 25 are 5.7%. As for the same period, rates among youths are 14% which is almost three times higher.

The unemployment rate is an essential indicator of both social and economic dimensions of youth poverty. Dangerously high unemployment rates show that young people can’t find their place in the labor market. Thus, they are not an active part of society. Jobless youngsters most often live with their parents, which destroys their learning motivation and civic engagement. Additionally, the lack of financial independence prevents them from going out and traveling. The combination of these factors kills their drive to find a job that creates even deeper despair on the emotional level.

A vicious circle starts forming around these young people who lose interest in social causes, politics and innovations. Once they lose their drive, long term unemployment is just the next step, according to studies in the EU. Unfortunately, many teenagers and twenty-something college graduates do not find jobs right after leaving the education system.

EU Institutions and National Governments Tackle Youth Unemployment

Young people’s labor market performance has indeed improved significantly over the past few years. According to the European Commission, there are 2.3 million fewer young unemployed now than five years ago. Around 1.8 million young people started apprenticeships, education or other kinds of training. Youth unemployment had decreased from 24% in 2013 to 14% in 2019.

The significant decrease of EU youth unemployment is possible through a combination of EU and national governments’ efforts to fight this phenomenon with various measures. This includes the promotion of a life-cycle approach to work, encouraging lifelong learning, improving support to those seeking a job and free training programs.

The latest research shows that apprenticeship and traineeship programs help prepare young people for the labor market and build relevant skills. Coordinating social policies like education or youth engagement and economic policies like employment rates is hard but a balanced governmental approach. With support from the local business in different countries, the number of youth employment increases in recent years. New partnerships have been set up with social partners, youth services and youth organizations as well.

These efforts should work to tackle EU youth unemployment by helping students and young professionals build attractive resumes for businesses operating on the global labor market. Nowadays, finding a job is more challenging than ever. Global competition requires all kinds of skill-sets from newcomers. In addition, these programs are designed to reinforce youngsters’ positions at this entry point. Besides, NGO initiatives and partner organizations create platforms for online education. The platforms are for people to take specialized courses without the need to enroll in an official university program. It’s easier, faster and very practical. Usually, such NGOs cannot provide certificates or diplomas, but the good news is businesses don’t need one. If the young person shows skills and a can-do attitude, he/she is hired.

The Changing of European Higher Education

The European conservative format of higher education is also changing slowly. More universities invite businesspeople to the campuses. This way the students can get the chance to meet entrepreneurs with hands-on experience and learn in a more informal environment. This type of education is most popular in the U.S., while formal education in Europe is still lagging in this regard. But times are changing, dynamics of life, work and study are different, and all involved parties are adjusting. There is no doubt that universities should work hand in hand with businesses to ensure a prospective future for young people.

– Olga Uzunova

Photo: Flickr

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10 Ways the EU Supports the Least Developed Countries

10 Ways the EU Supports the Least Developed CountriesThe European Union (EU), comprised of its 27 member states, is the biggest economy in the world. As such, the EU is the biggest exporter and importer of goods and services provided by third parties (non-union members). On the other end of the spectrum, the world’s Least Developed Countries (LDCs) account for only 2% of the global economy and only 1% of global trade in goods and services. The EU’s social policies have always been supportive of these LDCs. Yet, they acknowledge that economic policies and opportunities are most effective in supporting these countries. Even though the LDCs function in the global economy, they struggle with exports (while obtaining the full benefits). Because of this, the EU began allocating resources to help these countries. The EU also opens the European market to their products and services. Here are 10 ways the EU supports Least Developed Countries.

10 Ways the EU Supports the Least Developed Countries

  1. No Customs Taxes, No Quotas: LDCs exporters are not taxed when accessing the EU market. There are no limits on how much LDCs can export to member states without this taxation. This applies to all products or services, as long as it complies with the EU’s quality standards. The only exception is the trade of arms and ammunition.
  2. EU Aid for Least Developed Countries: The EU encourages the LDCs to increase exports and production by investing in their local economies. The Aid for Trade is the EU’s stimulus for the LDCs to take on infrastructural projects such as roads, bridges and ports. It is believed this aid helps the countries develop further and become more competitive.
  3. Least Developed Countries Get Complimentary Access to the EU Market: The EU’s trade policy for LDCs differs from other developing countries. In some cases, it is even more accommodating than their partnerships with traditional allies. By giving LDCs uninhibited access, the EU is providing a competitive advantage over other third parties. This way, LDCs have more opportunities to trade with the EU than stronger economies. Hence, this gives them a better chance to grow.
  4. Full Access for Services: The EU makes it easy for companies in the LDCs to sell innovative services. For example, engineering, management advising and IT. There is dual reasoning behind this policy. First, it creates a more competitive market. Second, it helps LDCs enhance their local technology and engineering service sectors.
  5. Opt-out from World Trade Organization’s Patents: The EU created unique policies that apply only to LDCs to encourage innovation. The LDCs may request an opt-out from the World Trade Organization’s (WTO) rules on intellectual property. This could include things like expensive patents or designs. These things can block their developmental progress. Further, the EU gives LDCs access to otherwise patent-shielded drugs, to ensure that people have access to the medications they need.
  6. Governmental Support and Counseling: The EU supports the LDCs’ governments, so they can make trade a central part of their national agenda and plan to develop their economies. As part of this effort in 2015, the EU pledged €10m to a program designed and guided by top European economists.
  7. No More Unfair Competition Among Farmers: Subsidizing local farmers to export is a common practice around the world. As a result, farmers in weaker states struggle to compete; sometimes they even declare bankruptcies. In 2015, the EU and Brazil discussed a new deal with the WTO. This deal would scrap the unfair practices and export subsidies to farmers. The deal is still in process, but it hides an excellent premise for all the LDCs that would profit from it on the background.
  8. Backing the Fair Trade: EU trade deals with the LDCs that specially designed products to promote fair and ethical trade of products. This includes cocoa, coffee, fruits and other foods; these products are mainly supplied from these countries. Additionally, the EU supports the LDCs by partnering with the International Trade Centre. It invests in projects like 1 RUN that trains small-scale farmers in the LDCs to produce their crops more sustainably.
  9. The Trade Facilitation Agreement: The EU is the loudest supporter and promoter of the WTO’s Trade Facilitation Agreement. It will make it much more manageable and more affordable to clear goods through customhouses – giving crucial administrative relief to exporters from the world’s poorest countries.
  10. EU Supports the Least Developed Countries on the World Stage: The Union is a prominent member of the world’s international organizations, including the WTO, the UN, and the United Nations Conference on Trade and Development (UNCTAD). In each one, the EU prioritizes the needs of the Least Developed Countries and encourages other members to open up their markets and provide finance to help their advancement.

 – Olga Uzunova

Photo: Pexels

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An Update on the Europe 2020 Strategy on Poverty

Europe 2020 strategy on povertyEach decade the European Union (EU) establishes an agenda to achieve goals for growth and social well-being. For the previous decade, the EU strategy focused on “smart, sustainable and inclusive growth” led by advancements in five main areas: employment, R&D and innovation, climate change and energy, education, poverty and exclusion. These five factors were essential in strengthening the EU economy. It also prepared the EU’s economic structure for the challenges of the next decade.

The Europe 2020 strategy set the target of lifting “at least 20 million people out of the risk of poverty.” To achieve this, the EU’s agenda included actions in stimulating education programs and employment opportunities. These actions aim to help Europeans at risk of poverty develop new skillsets. They also help Europeans find jobs that position them better in society.

For the last 10 years, poverty reduction has been a key policy component of the EU. In 2008, Europe had 116.1 million people at risk of poverty. As a result, EU members sought to reduce the number of poor Europeans to less than 96.1 million by 2020. Yet, as of 2017, the number of people at risk of poverty had only decreased to 113 million. So, what were the challenges that kept the EU from achieving its goal?

Employment in Rural Areas

The main tools the Europe 2020 strategy relied on greater access to education. Eurostat research shows that employment is crucial for ensuring adequate living standards. Furthermore, it provides the necessary base for people to live a better life. Although the EU labor market has consistently shown positive dynamics, the rates didn’t meet the Europe 2020 strategy target employment rate of 75 percent, especially in the rural areas. Jobless young people in rural Europe make up more than 30 percent of people at risk of poverty. As a result, the lack of new job openings and career paths in rural areas hindered individuals from escaping poverty and social exclusion.

Local Governance and Application of EU Strategic Policies

According to reports from 2014, the EU’s anti-poverty strategy was interpreted differently in every country. There is no common definition of poverty across all 27 member states. Therefore, the number of people at risk and their demographics vary. Moreover, EU policies were not implemented in all countries equally. Regional administrations and rural mayors are responsible for implementing EU anti-poverty policies. This localized approach resulted in a lack of coordination that was needed to correctly and efficiently realize the EU’s tools and strategies.

Education: The Winning Strategy Against Poverty

Despite these challenges, the EU showed that poverty can be addressed through education. Seen as key drivers for prosperity and welfare, education and training lie at the heart of the Europe 2020 strategy. Since higher educational attainment improves employability, which in turn reduces poverty, the EU interlinked educational targets with all other Europe 2020 goals. The Europe 2020 strategy did in fact achieve its goal of reducing the rates of people leaving education early to less than 10 percent in several EU countries. It also increased the number of workers having completed tertiary education to at least 40 percent. Both of these goals provide reasonable evidence of downsizing the risk of poverty by providing access to education.

Today, upper secondary education is the minimum desired educational attainment level for EU citizens. A lack of secondary education presents a severe obstacle to economic growth and employment in an era of rapid technological progress, intense global competition and specialized labor markets. Europeans at risk of poverty profit the most when given access to secondary education because it provides a path to staying active in society and learning marketable skills. The longer young people from rural areas pursue academic goals, the higher the chances of employment.

Moving Forward

As the Europe 2020 strategy showed, universal access to education has the potential to impact poverty across the European Union. Gaining new skillsets is one of the best ways to provide Europeans at risk of poverty and social exclusion with more opportunities for development and prospects for a better life.

– Olga Uzunova 
Photo: Flickr

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Uzbekistan’s Economic Transformation

Uzbekistan’s Economic TransformationAlthough the poverty rate in Uzbekistan is only 14 percent, the standard of living and GDP per capita are low. The government of Uzbekistan has partnered with the World Bank to undertake a massive economic transformation. It hopes to develop its economy, spur investment and improve livelihoods. The government is improving infrastructure efficiency and social services to achieve high-middle-income status for its residents by 2030. This is a part of the development strategy called Uzbekistan Vision 2030. The World Bank, International Finance Corporation, Asian Development Bank and the European Union have worked cooperatively to facilitate Uzbekistan’s economic transformation.

Massive World Bank Loan

The World Bank has worked with Uzbekistan since 1992 and funded more than 20 projects, totaling $3.6 billion. The bank recently approved a $500 million loan to stimulate private sector growth and job creation. Uzbekistan’s transformation into a successful market economy will ultimately result in a higher quality of life for its citizens. Currently, Uzbekistan’s GDP per capita stands at $6,900, almost one order of magnitude lower than the United States’ GDP per capita of $54,541. Uzbekistan believes that poverty levels will shrink as a direct result of developing its private sector economy and boosting GDP per capita.

Cyril Muller, World Bank Vice President for Europe and Central Asia, said that the loan will “boost growth, promote transparency and accountability and improve services for citizens.” In 2018 and 2019, Uzbekistan reduced trade and investment barriers, decreased strict business regulations, loosened its currency and opened markets to spur investment and boost imports and exports. These recent changes to its economic policy show Uzbekistan’s commitment to loosening its controls on prices, production and foreign investment.

Livestock Sector Receives Support

The European Union and the World Bank jointly funded a five-year project in 2019 aimed at developing Uzbekistan’s livestock sector. More than $150 million will go towards addressing supply chain problems such as low productivity, substandard animal health services, financial constraints on research institutions and poor access to markets for smallholder farmers. The Minister of Agriculture of the Republic of Uzbekistan, Jamshid Khodjayev, said that this project aims to increase the efficiency of the livestock sector by increasing the number of small farmers participating in commercial value chains, improving productivity and ensuring the sustainability of incomes.

The project will also support credit lines for farmers and other workers in the livestock industry. The agriculture industry employs about a quarter of the population. Livestock is an important agricultural product in Uzbekistan. About 90 percent of “livestock production relies on small farm holdings” and about 4.7 million smallholders depend on livestock for a living.

Energy Sector Boosts Agribusiness

“More than 126,000 MWh of electricity and 50 million cubic meters in natural gas” are available for use every year thanks to $50 million of project financing to improve energy sector performance and competitiveness. Since 2012, more than 560 farms and agribusinesses received credit lines made available through six financial institutions. Investment portfolio assets include agricultural machinery, greenhouses, livestock, orchards, vineyards and vegetable farming.

The poverty rate in Uzbekistan declined from 27.5 percent in 2001 to 14 percent in 2016 as a result of strong economic growth. GDP growth was a robust 8 percent for 2015 and 2016. The business environment has improved significantly due to a more open economic policy. Uzbekistan’s economy will continue to see improvement from internal changes to business-related statutes, like reducing the number of days to register businesses and property. Support from multilateral banks like the World Bank will further promote Uzbekistan’s economic transformation.

– Lucas Schmidt
Photo: Flickr

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8 Facts About Education in Spain

Education in SpainThe Spanish education system does not match up to the standards of the rest of Europe or other developed nations. However, the government is doing its best to put measures in place aimed at improving these standards. Below are eight facts about education in Spain:

8 Facts About Education in Spain

  1. The current system of education in Spain, also known as the Ley Orgánica de Educación (LOE), or the Fundamental Law of Education, means that education is free and compulsory between the ages of 6 and 16. This system also typically requires parents to pay for books and other materials such as uniforms.
  2. It is estimated that as of 2016, 98.3 percent of the population in Spain is literate. This is largely attributable to the 10 years of compulsory education.
  3. The Ministry of Education, Culture and Sport generally oversees education in Spain. However, each of the 17 autonomous regions in the country can make most of the decisions regarding their systems.
  4. Schools are categorized in three ways, there are state schools that are fully funded by the state, privately-run schools which are funded partly by the state and partly by private investors and purely private schools. A majority of Spanish students, 68 percent to be exact, attend state schools. This compares to only 6 percent of students who attend purely private schools.
  5. There are four levels of education in Spain. The first is a nursery or preschool, which is optional. Next comes six years of primary, which is the first stage of compulsory education, followed by compulsory secondary education for four years. Finally, there is an optional level of upper secondary education. At the primary level, the average number of students per class is around 25. While in secondary, the average number of students per class is around 30.
  6. A 2019 study by the Organisation for Economic Co-operation and Development (OECD) shows that Spain experiences more class time than both the European Union and OECD averages. The difference is more pronounced in high school, where Spain’s class time per year is 1,045 hours. This compares to the EU average of 893 hours, while the OECD average consists of 910 hours. This doesn’t seem to have any positive outcome, considering Spanish students perform worse on average than other students regarding the Program for International Student Assessment (PISA) test. PISA experts believe the problem lies in the teaching methods, as Spanish students tend to memorize information instead of trying to find their own solution to problems.
  7. From pre-primary to secondary education, the enrollment rate was above 90 percent at each level in 2017. However, for tertiary education, the enrollment rate falls to 88.85 percent during the same period. Again, this is attributable to the fact that tertiary education is neither compulsory nor free. Interestingly, more girls than boys enrolled at each stage of education. This includes a marked difference at the tertiary level where the enrolment rate for females is 97 percent compared to 81 percent for males.  However, Spain also faces the greatest number of school dropouts in the EU.
  8. The government expenditure on education has steadily declined since 2009, including spending of 4.87 percent of the GDP on education, compared to 4.21 percent in 2016. This puts makes Spain on the tail-end of European countries when it comes to governmental education spending

While there are positives surrounding education in Spain, the situation requires additional efforts. With increased investment by the government and improved policies, schools will be able to afford more resources, hire more teachers and reduce the ratio of students to teachers. In doing so, students can receive more personalized attention and a better academic experience. Further, this will improve the quality of education and possibly reduce the time spent by students in the class. Finally, these enhancements will likely decrease the unemployment rate and greatly improve the quality of life in Spain.

– Sophia Wanyonyi
Photo: Wikimedia Commons

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Increasing Data Privacy in Africa

Data Privacy in Africa

In the developed regions of the world, data privacy has been a topic of public discourse for some time. From the European Union’s adoption of the General Data Protection Regulation (GDPR) to smaller laws that have passed in many U.S. states, the developed world has recognized that data privacy laws are important to modern digital society. Now, as the burgeoning tech industries in many developing countries push them into fast-paced versions of the West’s digital revolution, many developing countries are also beginning to put similar laws into effect. In particular, data privacy in Africa has become a major concern as the region steps into the digital age.

Data Privacy in Africa

In June of 2019, leaders from across Africa gathered in Ghana for the groundbreaking Africa International Data Protection and Privacy Conference. At this conference, African leaders such as Ghanaian Vice President Dr. Mahamudu Bawumia, U.N. Special Rapporteur on Right to Privacy Joe Cannataci, and Chairperson of the Information Regulator of South Africa Pansy Tlakula spoke about ways to advance data privacy in Africa. Topics ranged from convincing African nations to fall in step with international laws about data privacy to integrating data privacy laws with religious groups in Africa.

This conference came at a crucial time in the development of data privacy in Africa. Sub-Saharan Africa alone is expected to add more than 250 million internet users by 2025, and the Sub-Saharan mobile industry is expected to add $185 billion to GDP by 2023. Despite this growth in internet use, the continent is currently behind on data privacy laws. Only 17 out of 54 countries in Africa have passed data privacy laws, and 15 African countries have yet to ratify the African Union’s Convention on Cybersecurity and Data Protection. The leaders assembled at the conference hoped to change this. “Data protection in Africa is a prerequisite” to joining the Fourth Industrial Revolution, said Hon. Vincent Sowah Odotei, Ghana’s deputy minister of communications, in his final remarks of the conference.

Improved data privacy in Africa has several benefits. According to the Global System for Mobile Communications Association, improving data privacy, “allows countries to trust each other and enforcement bodies to cooperate. In turn, this can boost the economy by allowing data to flow within the region and it is more attractive for external investors who prefer not to be confined to keeping data in one place.”

How a Lack of Data Privacy Harms Poor Communities

Beyond large-scale economic benefits, improved access to data privacy will have specific benefits for low-income Africans. A 2017 study from Washington University in St. Louis found that poor people are more vulnerabilities when it comes to data privacy, facing vulnerabilities such as a greater likelihood of having their personal data used against them and more devastating consequences from identity theft. Poorer people are also much less likely to have basic digital literacy skills, thus increasing their vulnerability to digital threats, with 64 percent of poor Americans reporting that they do not have a good understanding of how the privacy policies of websites they visit apply to them.

Michele Gilman, one of the authors of the study, said in an interview with The Borgen Project that data privacy is tantamount to improving the lives of those in poverty. Gilman said, “Technology can be a tremendous resource for people living in poverty to access services and opportunities as a ladder out of poverty—but without controls or regulation, it can also further entrench poverty.”

Gilman pointed out that identity theft can wreak particular havoc for people living in poverty. When people living in poverty are victims of identity theft, according to Gilman, their lack of a social safety net coupled with the sudden loss of most of their financial assets can lead to dire consequences. Because poor people tend to lack the resources to undo the consequences of identity theft, the American Bar Association reports that they are more likely to be wrongfully arrested and hounded by collection agencies for crimes they didn’t commit and loans they didn’t take out. This is all in addition to the usual consequences of identity theft, which can take months to resolve. The Bureau of Justice Statistics found that in the U.S., 43 percent of households that were victims of identity theft made less than $75,000 per year. In South Africa almost half the consumer population either has been, or knows someone who has been, the victim of identity theft.

Gilman also illuminated the broader threat that a lack of data privacy can pose for those in poverty. Big data coupled with societal discrimination can lead to low-income people systematically being denied access to resources and they are more often targeted by government surveillance. For instance, 40 percent of colleges and universities use applicants’ social media profiles to make decisions through a process known as social analytics, where algorithms go over applicants’ social media behavior as well as who they are friends with in order to determine their qualifications to enter.

Up to 27 percent of poor social media users don’t use any settings at all to make social media profiles private, and because poorer students tend to rely more on financial aid, there is a concern that social media analysis will allow universities to selectively avoid recruiting low-income students. In a similar vein, police departments have begun to use a process known as threat scoring, where they analyze crime statistics to determine how likely a given individual is to commit a crime using data from social media and other sources, essentially creating guilt by association.

Effectiveness of Data Privacy Laws

In places where data privacy laws have already taken effect, the results have been significant. Since the passing of the GDPR, record numbers of data breaches that otherwise would have gone unreported, have been reported to the relevant authorities, with 36,000 breaches reported in 2018 compared to between 18,000 and 20,000 in 2017. Countries around the world, from Brazil to Hong Kong, have passed GDPR-like bills, and many other countries are looking to follow suit. The implementation of these laws has not been without hiccups—many businesses in the EU have struggled with the implementation of new regulations, and the EU has been slow to actually enact fines for companies that break GDPR rules—but in the end, these laws will help to dismantle the structures that keep people in poverty.

Data privacy laws protect low-income people from negative consequences such as identity theft and algorithmic discrimination. The creation of laws to increase data privacy in Africa, therefore, will increase protection for Africans who are being kept in poverty by lenient data privacy regulations. As the region’s tech develops, its laws are also developing to ensure that increased access to technology also means increased possibility to alleviate poverty.

– Kelton Holsen
Photo: Flickr

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3 Examples of Countries Recovering from War Today

Countries Recovering from War

Civil war often erupts in countries that suffer from perpetual poverty. At the same time, war only serves to intensify poor living conditions in regions that are already vulnerable. In countries ravaged by war, people are displaced, infrastructure is destroyed and often entire industries are disrupted, destroying the resources that a country needs to keep its people alive. This devastation often persists even after a war is over. However, several formerly war-torn countries are making significant strides when it comes to post-war reconstruction and sustainable development. Here are three examples of countries recovering from war today.

3 Examples of Countries Recovering from War Today

  1. Yadizi Farmers are Recultivating Former ISIS Territory
    When the Islamic State in Syria and the Levant (ISIS) swept through the Sinjar region of northern Iraq in 2014, they displaced millions of farmers who relied on that land to make their living. ISIS persecuted the local Yadizi people for their religious beliefs and tried to destroy their farms in order to prevent them from ever being able to live in Sinjar again. In 2015, the allied Kurdish forces retook Sinjar, but the devastation of the land and the constant threat of land mines has since caused many Yadizi farmers to fear returning to their homeland.However, the Iraqi government has begun funding post-war recovery efforts in order to allow the Yadizi people to take back their land. A Yadizi woman named Nadia Murad, winner of the 2016 Nobel Peace Prize, has started a project called Nadia’s Initiative. A group called the Mines Advisory Group (MAG) has also begun to clear landmines from the land of the displaced farmers. Although progress has been slow, partly due to limited governmental support in recent years and heavy regulations on the transportation of fertilizer, the region is slowly but surely recovering.
  2. The Central African Republic is Working on Protecting its Forests
    After years of political instability and a series of coups, as of 2016, the Central African Republic has a democratically-elected president for the first time in its history. Although the election of President Touadera signaled a step in the right direction toward peacebuilding, there are many areas that still need to be addressed.One particular problem for the Central African Republic is the widespread practice of illegal logging. The country’s forests are one of its biggest resources and wood is its top export, but corrupt public officials have allowed a massive trade in illegal lumber to arise, threatening the sustainability of the forests and undermining recovery efforts. Forest managers attempt to stop the problem but are often threatened by public officials who profit from the illegal lumber trade. However, many in the Central African Republic are working on changing the status quo. In 2016, the country renewed an accord with the European Union that incentivizes the country to reform forestry laws and crack down on illegal logging in exchange for favorable trade agreements. This renewal of the country’s greatest natural resource will help post-war recovery by strengthening its income from trade, building relationships overseas and giving resources for the reconstruction of damaged buildings.
  3. South Sudan is Using Mobile Money to Reignite the Economy
    The country of South Sudan is in the middle of recovering from a civil war that lasted five years and killed about 400,000 people. Part of the devastation wreaked by this war was the collapse of the South Sudanese economy, as cell towers were destroyed, trust in financial institutions was eroded and corruption began to overtake the country’s banks. According to AP News, “Around 80 percent of money in South Sudan is not kept in banks” primarly because most residents are rural and live too far from the major cities where the banks are located. Of course, there are other barriers as well, including the fact that only 16 percent of the population has a government ID (which means more expensive withdrawals and no money transfers) and concerns about the stability of the country’s banking system.As a part of the country’s post-war recovery, the South Sudanese government is working with mobile carriers to create a system called mobile money, in which people can bank from their phones instead of relying on the country’s physical banks and ATMs. This system allows people to easily participate in the Sudanese economy and since studies have shown that having access to services such as banks helps economic growth, the mobile money boom will be invaluable to South Sudan’s post-war recovery. The government is also working on setting up biometric identification for all citizens to use in banking, and on restoring damaged mobile infrastructure in order to make services like mobile money available anywhere.

– Kelton Holsen
Photo: Flickr

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The Case for Georgia’s Integration into the EU

Georgia's integration into the E.U.Since the end of the Russo-Georgian War in 2008, poverty reduction and higher employment have accompanied an expanding Georgian economy. However, fears of renewed conflict with Russia, Georgia’s northern-neighbor, jeopardize the progress the nation has made in curtailing poverty and handling the refugee crisis. Georgia’s integration into the E.U. will not only reap economic benefits and accelerate a decline in poverty levels, but also provide Georgia security from Russian aggression.

Georgia’s Relationship to the EU

Despite being a member of the Organization for Security and Cooperation in Europe and the Council of Europe, Georgia is not a member-state of the European Union. Since Georgia’s Rose Revolution in 2003, politicians of diverse ideologies have prioritized E.U. membership as an ultimate goal. In fact, a 2009 survey of over 2,400 Georgians found that 50 percent of the population believed that Georgia would join the E.U. within 10 years. While Georgia has yet to join the E.U. in 2019, the Georgian government continues to introduce various reforms to align the country with the tenets of E.U. institutional structures. E.U. membership would help Georgia tackle poverty and inequality.

Free Trade with Europe Increasing National Welfare

Poverty in Georgia remains at 16.3 percent and unemployment at 12.7 percent. Currently, Georgia is allowed to trade in certain industries with the E.U. as a part of the Deep and Comprehensive Free Trade Area (DCFTA). Once the E.U. admits Georgia and Georgia is able to trade freely with E.U. member-states in all industries, poverty and unemployment will likely decline.

Free trade makes a country more productive by selecting a country’s most productive industries for exporting. Import competition will replace less productive industries, but Georgians will specialize in their more productive exporting sectors and reap the benefits of specialization. Enhanced specialization from trade will raise Georgia’s gross domestic product and increase consumer welfare because Georgians will be able to purchase foreign-produced goods at cheaper prices while specializing in exporting sectors, such as copper ores and wine. Coupled with appropriate distributional policies, free trade will have a positive impact on reducing poverty and unemployment.

EU Membership Shielding Georgia from Russian Aggression

During the 2008 war, 130,000 Georgians became displaced; Action Against Hunger reports that the number of refugees has increased over time. If Russia were to invade again, there would be serious economic consequences. Furthermore, the refugee crisis would deteriorate substantially. Georgia’s integration into the E.U. provides a security agreement under the auspices of the European Defence Union; if Russia interferes with one E.U. member-country, it faces the backlash of Europe. George could reverse its progress in reducing poverty over the past decade. E.U. membership will serve as a security buffer from Russian aggression and a defender of the nation’s recent economic progress.

Because of the protection and economic boost E.U. membership would bring, many political scientists and economists agree with the 67 percent of Georgians who advocate for Georgia’s integration into the E.U.

– Grayson Cox
Photo: Flickr

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Top 10 Facts About Living Conditions in Liechtenstein

Top 10 Facts About Living Conditions in Lichtenstein

Liechtenstein is a little-known principality located between Austria and Switzerland. Despite its small size (roughly 38, 000 inhabitants) it has a growing economy, which allows for residents to have a high standard of living. Here are the top 10 facts about living conditions in Liechtenstein.

Top 10 Facts About Living Conditions in Liechtenstein

  1. Liechtenstein provides its workers with some of the highest wages in Europe – Because of the growing economy, citizens of Liechtenstein benefit from one of the highest wage levels across Europe. On average, citizens make about $92,000 annually. When compared to the average gross salary of Germany’s citizens, Liechtenstein’s citizens have a higher income by about $15,000.
  2. Living costs are high – While the country has high wage levels, it also has high living expenses. The average citizen spends about half their monthly income on their fixed costs, which usually include housing, utilities, transportation and health insurance. Despite the high living costs, Liechtenstein has a zero percent poverty rate with poverty being defined as those living at or below $5.50/day.
  3. The country offers universal health care – Health insurance is required and guaranteed to all people living or working in Liechtenstein. Individuals’ insurance is financed by their insurance holder and their employer as well as by state subsidies. Although there is no current data with regards to the increase in healthcare costs over time in Liechtenstein, in 2016, the government spent $188 million on social welfare programs such as healthcare.
  4. The government provides its residents with a high-quality education – Liechtenstein relies on its excellent education system to provide the economy with highly qualified workers. After completing the mandatory schooling period of 11 years (from primary school to high school), individuals are left with a range of options to pursue further education. These options include vocational training, higher education (college or university), and apprenticeships.
  5. A high percentage of Liechtenstein labor force commutes into work – The Feldkirch-Buchs railway connects Switzerland to Austria, passing through Liechtenstein on the way. This railway allows workers to commute into Liechtenstein. Since a majority of the country’s workers, (55 percent) are from neighboring countries, this system is crucial in maintaining Liechtenstein’s labor force. The reason behind the high number of commuters is because Liechtenstein’s economy has grown so quickly over the past years that its domestic labor force has not been able to keep up.
  6. Liechtenstein has a strong economy – Liechtenstein has one of the highest measures of GDP per capita in the world ($168,146.02) and a low inflation rate of 0.5 percent. Although not officially recognized by the European Union, it does receive some of the monetary and economic benefits of the organization because of its deal with Switzerland, which stipulates that they import a large percentage of their energy requirements from the Swiss and use the Swiss Franc as their national currency.
  7. Residents have religious freedom – Although an overwhelming majority of the population is Roman Catholic (the official state religion), there remain many individuals in the country who practice other religions or other forms of Christianity. The state is currently in the process of separating itself from the church, however, this is largely considered a symbolic move, as the current union does not appear to affect adherents of other religions. The government is pursuing this initiative by creating a provisional constitutional amendment to establish new regulations between the state and the religious communities. Additionally, there has been mention of providing more equitable funding for all the different religious organizations, rather than solely giving the Catholic church more funding.
  8. The country provides immigrants with good living conditions – Immigrants make up about 65 percent of the total population in Liechtenstein.  Many of these immigrants come from nearby countries such as Switzerland, Austria and Germany. Although the requirements for the naturalization process are quite lengthy, (an individual has to live in Liechtenstein for 30 years before beginning the process) immigrants receive all the same benefits that natural-born citizens receive.
  9. Liechtenstein has low unemployment – Liechtenstein has an unemployment rate of 1.9 percent. Most of its labor force is employed in the services and goods sectors, with only 0.6 percent being employed in the agriculture sector. About 40 percent of the workforce is employed in the industrial sector, which, combined with the manufacturing sector, make up about 40 percent of the country’s gross value added. Its economy is focused primarily on high-quality exports, services and goods such as machine and plant construction, as well as precision tools and dental instruments, among other items.
  10. Liechtenstein has had issues with spreadable diseases in the past – Some of the most common diseases include influenza, hepatitis B and tick-borne encephalitis. The country has since introduced several initiatives to address these issues, signing treaties with Switzerland and Austria in order to provide its citizens with better healthcare options.

These top 10 facts about living conditions in Liechtenstein demonstrate the quality of life with which residents of Liechtenstein experience on a daily basis. While the country certainly has some very positive trends going for it (namely, unemployment, wages, GDP, and its education system) it also has some things to improve upon, such as reducing living costs, which make it hard for many individuals to live in the country. Nevertheless, Liechtenstein appears to be in a good state presently, as it provides many services and freedoms that make it a desirable place to live.

– Laura Rogers
Photo: Flickr

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10 Facts about Life Expectancy in Romania

10 Facts about Life Expectancy in Romania
Among European Union members, Romania ranks as one of the lowest in terms of life expectancy. Life expectancy can be a complicated issue. It is impacted by many other factors, such as poverty, housing and health care. These 10 facts about life expectancy in Romania will reveal which issues have shaped the current problems in Romania, as well as what can be done to solve them.

10 Facts About Life Expectancy in Romania

  1. Life expectancy for young people in Romania is the lowest in the European Union. In countries such as Spain, Italy, France, Switzerland and the U.K., the life expectancy of a young person today is around 85 years. According to the CIA, Romania has a life expectancy of just 75.6 years, giving Romania one of the lowest overall life expectancies in the European Union.
  2. Life expectancy in Romania has had its ups and downs since 1990. Prior to the 1990s, very little research was done on life expectancy in Romania. In the period from 1990-1996, Romania actually experienced a decline in life expectancy of 1.71 years for men and 0.54 years for women. Romania’s life expectancy recovered when this trend reversed in the period from 1996-1998, with an increase in life expectancy of 1.12 years for men and 0.89 years for women. Life expectancy in Romania has been gradually trending upwards since.
  3. Romania is one of the poorest countries in Europe. As of 2018, Romania is among the 10 poorest countries in Europe. The EU has an average GDP per capita of more than $38,000. Meanwhile, Romania’s per capita GDP is only $9,520. Poverty, for obvious reasons, is often inversely correlated with life expectancy.
  4. Heart disease is the leading cause of death in Romania. By 2004, the leading cause of death in Romania was cardiovascular diseases which were responsible for 62 percent of all deaths. Romania’s past increases in life expectancy are due partially to a reduction in the rates of heart disease in the late 1990s. This reduction is likely due to a change in diet and reduced obesity rates.
  5. Living conditions in Romania have been steadily improving since the fall of communism. In the past 20 years, the average household income in Romania has increased by more than $2,500, and the unemployment rate has been cut in half. The number of Romanian citizens reported to be living in bad health is now lower than the average for Europe. By 2017, Romanian households had improved access to modern tools and appliances which play a role in increasing living standards. By 2017, 33.7 percent of households owned a personal car, and more than half own computers. Almost every household had a cooking stove, and 56 percent owned a modern refrigerator.
  6. Rural areas have substandard living conditions. In Romania, life expectancy varies significantly between different regions. As is often the case, there is a rural-urban divide. Life expectancies are higher in cities than in the countryside. Urban areas often have access to higher quality medical care, whereas rural regions often have sub-par medicine. Rural areas also have a lower standard of workplace safety. A survey published in 2009 reveals that 64 percent of all workplace accidents take place in rural zones of the country.
  7. Urban regions have higher life expectancies. Bucharest has the highest life expectancy in Romania. The average life expectancy in Romania’s capital is 77.8 years, 2.4 years above the national average. The counties with the next three highest life expectancies are Valcea (77.5 years), Cluj (76.7 years) and Brasov (76.6 years). Each of these counties represents populations that live in urban metropolitan areas.
  8. The Romanian health care system is ranked the worst in Europe. For two consecutive years, Romania’s health care system has been rated the lowest in the European Union in the European Health Consumer Index (EHCI) at 34th. Countries are ranked by quality of care, accessibility and wait times. The study also concluded that Romania’s system was discriminatory towards minority groups such as the Roma, who experience poorer health outcomes on average.
  9. Life expectancy is much worse for minority groups. One of Romania’s largest minority groups is the Romani, or Roma, who represent 3.08 percent of Romania’s population. The Romani people face deep-seated oppression and discrimination which contributes to them being disproportionately impoverished. Among Romani women, maternal mortality rates are 15 times greater than among the rest of the population. An estimated 30 percent of the Romani live in slum-like conditions. The overall life expectancy for the Roma is estimated to be anywhere from five years to 20 years shorter than that of the general population. If life expectancies in Romania are to be improved, then discrimination must cease. The government must make a serious effort to lift disadvantaged minority groups out of dilapidated living conditions.
  10. NGOs have and will continue to play a crucial role in improving life expectancy in Romania. Nonprofits have been very important in improving the lives of Romanians. Groups like CARE and Hearts Across Romania have focused on aiding children, many of whom are abandoned due to poverty. Love Light Romania seeks to combat poverty by promoting access to educational opportunities. Habitat for Humanity has sought to build housing in Romania, to supplement the nation’s insufficient public housing program.

From these 10 facts about life expectancy in Romania, it can be determined that the situation is a mixed bag for Romania. On one hand, life expectancy has shown significant improvement since the fall of communism. On the other, it is clear that Romania still has quite a few social issues that must be corrected if it is to rise to the level of the rest of Europe. Issues such as insufficient health care and discrimination against Roma people still persist, however through government initiatives and continual efforts by nonprofits, these issues can be solved.

– Karl Haider
Photo: Unsplash

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