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EU Candidate Status
On October 12, 2022, the European Commission recommended official European Union (EU) candidate status for Bosnia and Herzegovina. Considered a potential candidate since 2003, the country only formally applied for EU candidate status in 2016. The recommendation of the Commission does not mean that Bosnia and Herzegovina will be granted candidate status very soon. Nevertheless, it is sending a positive message to the country, signaling EU candidate status in the future if it implements more reforms.

The EU Candidate Status: A Tool for the Country’s Development

Obtaining EU candidate status to bolster development drives many countries to apply to the European Union. However, in order to obtain candidate status, countries must pass specific legal and political reforms.  For instance, the EU may ask countries to work on reducing corruption, poverty and social inequality.

Bosnia and Herzegovina’s Pathway

On December 2019, the Council of the European Union endorsed 14 key priorities for Bosnia and Herzegovina to obtain candidate status. These 14 priorities are a roadmap for the country in its path to implement strategic reforms to achieve candidate status. Political priorities include aligning its constitutional framework to European standards and improving its judiciary. Economic priorities include improvements in educational quality and energy infrastructure.

Furthermore, the EU has a special process for Western Balkans countries, called the “stabilization and association process.” This process has three aims:  political stability and a quick transition to a market economy, regional cooperation and eventual EU membership. The Western Balkans process provides Bosnia and Herzegovina with financial assistance, trade concessions and assistance for stabilization and reconstruction needed due to the war in the 1990s.

The Progress and Obstacles

The European Commission’s 2022 Report on Bosnia and Herzegovina outlined some progress on the 14 key priorities. The country made some progress in addressing environmental challenges and sustainable connectivity. It also made progress in its migration policies.

When it comes to the economic criteria, the country is slowly establishing a market economy. However, its economic performance is still below its potential. Its Economic Reform Programme does not include enough measures to tackle economic challenges on a national scale, such as the informal economy and unemployment, per the report.

The report also outlined little or no progress in the political sector. A key obstacle is that the country remains politically unstable. Indeed, the political entity representing the Bosnian Serbs, the Republika Srpska is trying to “unilaterally take over state competencies” and is threatening to secede from Bosnia and Herzegovina due to potential accession to the EU. The European Commission also noted that Bosnia and Herzegovina did not make a lot of progress when it comes to tackling corruption and organized crime.

The Path Forward

Bosnia and Herzegovina has been seeking to join the EU for almost two decades. To reach the EU candidate status that will foster its development, the country needs to build upon its improvements on the 14 key priorities. It also needs to step up efforts to overcome the obstacles blocking any progress. If Bosnia and Herzegovina uses the support it has gained through the special Western Balkan process, the next report on its progress should be more positive. Perhaps the European Commission’s recommendation is the encouragement that Bosnia and Herzegovina needs to improve its EU candidacy potential.

– Evan Da Costa Marques
Photo: Flickr

Migration to Italy from North Africa
The migration scenario in Italy has evolved considerably in recent years. The request for residence permits for family reasons or protection has drastically increased and the geography of origin is changed. Sea landings from the North African coasts today constitute the main migratory mass toward Italy, a phenomenon that has reached critical proportions over time. Here is some information about the migration to Italy from North Africa.

A Snapshot of the Migratory Flows of the Last Decade

In the last decade, the flow of Italian coast landings from Africa has often reached critical thresholds. The beginning of the Arab Spring and the revolution in Tunisia brought approximately 60,000 people and immigrants to Italy in 2010.

The conclusion of the revolution in Tunisia in January 2011 ended with the interim election of President Mohamed Ghannouchi. This led to a brief period of stagnation in landings in Italy. A new conflict outbreak from Libya brought a new peak in migratory flows two years later.

Since 2014, these landings have reached dramatic thresholds. Between January 2015 and January 2018, the Italian Institute for International Political Studies estimates that the threshold of 180,000 landings per year was reached. These numbers were unmanageable for coast guard rescue teams in the event of shipwrecks and for the capacity of the Italian reception centers.

The February 2017 critical situation led the Italian foreign ministry to sign an agreement with the Libyan government. The three-year agreement required the Italian government to provide economic aid and technical support to the Libyan authorities and the Coast Guard to reduce the smuggling of migrants across the Mediterranean Sea while Libya improves the conditions of its migrant reception centers. After two years, the number of landings on the Italian coasts dropped from 200,000 in 2017 to 15,000 in 2019.

The COVID-19 pandemic led to various consequences with heavy repercussions on international mobility. Contrary to tourism, the effects of the pandemic on landings in Italy and Spain, have been opposite. In 2021, there were 67,000 landings in Italy.

Political Response to the Crisis in Europe

Numerous key elements gravitate around the landing of migrants in Italy. Italy does not bear all of the migration crisis expenses ranging from the rescue missions to the logistics and reception of immigrants aimed at guaranteeing livelihood and health care.

The EU commission has allocated the “2014-2020 Asylum, Migration and Integration Fund” for the integrated management of the phenomenon of migratory flows in asylum, integration and repatriation.

The situation in the reception centers is stable as the number of landings today is not so critical. It is natural to consider whether Italy will be able to withstand the pressure in the future if the 2017 figures are reached as the number of migrants housed in official Libya detention centers grew in 2021.

Europe has not developed a concrete plan on the redistribution of immigrants on European soil that will integrate and extend the Malta agreements on the subject, stipulated between Italy, France and Germany. For this reason, only 2% of the 53,000 people who disembarked from 2019 to mid-2021 moved to other European countries.

The Response to the Political Crisis in Italy

On the Italian side, one of the reasons for the rate of irregular immigration from Africa is the fact that Italy’s regular entry channels for non-EU citizens in the last decade have progressively reduced. The reasoning comes from the effect of the 2008 crisis and a political measure dictated more by the nationalist aversion to the increase in landings in recent years than by the objectivity of the figures.

This general closure also underwent replication in the acceptance of international asylum applications by Italy. The change in Italian legislation has meant that the number of permits granted for humanitarian and special protection in 2017 went from 28% to 1% in 2021. The closing trends, which many other European Union countries have followed, are somewhat unjustified, especially since the numbers of landings in recent years are growing.

The third crucial element to consider in this matter is the integration of those who land on the Italian coasts and its close correlation with employment. It is the integration that allows populations who leave their countries driven by wars, violence and poverty to be able to work while rebuilding a life and contributing to the economies of the host countries.

The Italian Institute for International Political Studies states that the difficulty of integrating refugees into the labor market of the country of destination is considerable. According to estimates, after more than a decade from the first entry into the country, the employment rate remains only slightly higher than 50%. This is due to the high general unemployment rate that has plagued Italy since the last global economic crisis and COVID-19 aggravated this further.

Looking Ahead

Over the past year, the number of migrants and refugees who lost their lives trying to reach Europe by sea was 896, a figure more than double the numbers in 2020. Italy’s inadequacies on this matter are still many and cannot be justified by the lack of a lasting and coherent political governance caused by the numerous changes of government. By its divisive character, immigration is often at the center of the media and political debate, becoming a salient point of electoral programs.

The current and past efforts represent a good starting point for improving the national emergency reception and integration plans for migrants to prepare Italy to face the possible future aggravation of these migratory flows. The country will require assistance to face refugees’ continued migration to Italy as many deaths occur at sea.

– Francesco Gozzo
Photo: Flickr

Sanctions on Belarus
Amid continuing United States (U.S.) and European Union (EU) sanctions on Belarus, border officials reported that four
 people have died on the Poland-Belarus border from hypothermia and exhaustion. Polish authorities have been severely restricting the arrival of immigrants. They have been sending people back from the border, leading many to camp out in the dense forests bordering Belarus.

Lukashenko: Reason for the Sanctions

The EU and the U.S. placed numerous economic sanctions on Belarus in response to Belarus President Lukashenko’s threatening political tactics. Lukashenko’s administration grounded a Ryanair flight containing a prominent activist from the opposition and detained numerous journalists critiquing Lukashenko. The Belarus government arrested 35,000 protesters and is holding 626 dissidents as political prisoners. These actions underline a long-term trend that Lukashenko’s actions violate key democratic ideals, as well as implications that he is unfit for leadership or that he won his 2020 election on fraudulent grounds.

Poland’s national government has also indicated that Lukashenko’s administration is responsible for flying in Middle Eastern refugees and pushing them to attempt illegally crossing the Poland-Belarus border. There have been 8,000 attempts during 2021, more than 3,500 attempts in August 2021 and more than 4,000 attempts in the first three weeks of September 2021. Polish authorities do not have enough resources to handle this influx and the over 1,400 in Polish detention centers. In response to these actions, Poland’s permanent representative at the EU, Andrzej Sados, has indicated Poland’s support for heightened sanctions. 

Sanctions’ Heavy Burden on Belarus

Sanctions on Belarus include rigid restrictions on military and surveillance technology, potassium-based fertilizer and petrol/petrol-based products. Bilateral trade between the EU and Belarus increased by 45% in the last 10 years, with 18.1% of Belarus’s goods trade stemming from the EU. Almost 25% of these exports were petroleum or potassium-based fertilizer so sanctions on these items put a heavy burden on the economy.

The U.S. and the EU also sanctioned Belarus’ cigarette industry that contributes significantly to European cigarette smuggling.  For example, over 90% of the cigarettes smuggled into Lithuania in 2020 came from Belarus.

Thirdly, the U.S. EU sanctions on Belarus include sanctions on politically active business leaders and sports entities. Canada joined the U.S. and the EU to sanction oligarch Nikolai Vorobei. The U.S. sanctioned the Belarus National Olympic Committee because Lukashenko’s son controls it.

Sanctions Threaten Belarus’ Success Combatting Poverty

With an economy so dependent on state-owned agricultural or industrial companies and their exports to the rest of Europe, the remarkable progress Belarus has made in lowering its poverty rate is at risk. Between 2000 and 2013, the poverty rate in Belarus fell by 60%. Economists have warned for the last decade that Belarus’ economy depends far too much on the exportation of a few goods. Further, the drop in poverty has not correlated with a rise in living standards. Lastly, the Belarusian rouble has also fallen by more than 30% against the euro since the beginning of 2021. 

The sanctions threaten Belarus’ economic gains, along with Belarus’ dependence on Russia, its largest trading partner. The loss of Russia’s oil and gas subsidies could devastate Belarus.

New Government, New Tech Sector, New Hope

The U.S. and EU sanctions, Lukashenko’s suppression of dissent, the border deaths and Russia’s stranglehold each jeopardize Belarus’ future. A change of leadership is the first step toward positive change. As Klaus-Jürgen Gern from the Kiel Institute for the World Economy said, “But without change, the economy will probably stagnate and decline in relative terms over the next decade because the incentives — like modernization and new investment — won’t be in place.”

Also, a new technology sector is emerging in Minsk. There are more than 450 new tech startups that are not beholden to Moscow. This is a glimmer of hope for Belarus to modernize and relieve itself from harsh leadership and crippling sanctions.

– Shruti Patankar
Photo: Flickr

Romania Battles Recent Diseases
Romania is a beautiful country with rich culture and colorful nature. Romania maintains its traditional folklife with a clash of modernism. If one visited Romania, saw pictures or even watched a documentary, one would see the old and new structural buildings with sheep and cows plaguing the streets. Although thriving, many still consider the country an economically developing nation, with many aspects needing assistance. Currently, Romania is concerned with these recent diseases: the Coronavirus and measles. Diseases in Romania may not always be treatable, but vaccines can make them preventable. 

Coronavirus Disease (COVID-19)

Across the globe, the COVID-19 pandemic has negatively impacted every country. However, it has disproportionately affected those in developing countries like Romania. On February 26, 2020, the first case of COVID-19 received confirmation. Soon after, the coronavirus disease became one of the many diseases in Romania. Romania did not have a stable healthcare system. It did not have the proper resources such as medical equipment, supplies, personnel and let alone enough medical establishments to aid those in more rural areas.

According to The Institute for Health Metrics and Evaluation (IHME) data graph, Romania appears to face continuously increased spikes of daily infections. The projection estimated for hospital resource use, both beds needed and intensive care units would increase and be in high demand by October 18, 2021. Currently, 27% of Romania’s population has received two vaccinations, compared to 54% in the U.S. Many expect that Romania will stay at 27% while the U.S.’ vaccination percentage continues to grow. Due to the severity of the situation, Romanian authorities took action to spread a national campaign through media channels such as social media and television news to more spaced-out areas in Romania.

Measles

Measles is an infectious disease that affects the respiratory system yet may come across as simple flu. The contagious disease can spread through sneezing and coughing and it is not easy to detect. Many of the diseases in Romania are not curable or treatable but people can prevent them through vaccines and proper methods of prevention. Based on the article, “Measles Epidemics in Romania: Lessons for Public Health and Future Policy” by Stefan Dascalu, measles is the main leading cause of child deaths in Romania. This preventable disease led to the deaths of children, younger than 5 years of age. Although the cases of measles decreased from 1982, it is still endemic.

There are actually two doses of the measles vaccine, which are MCV1 and MCV2. Records and expectations stated that the vaccine coverage would be greater than 95% during the 2000s era. However, in the year 2010, a decreased trend of coverage appeared. By 2014, the trend declined to 89% of coverage only with those receiving the first dose. Unfortunately, the trend will likely continue to decline. In 2016, the most recent outbreak occurred where there were cases that exceed the number of 15,500. Additionally,  the death rates reached 59 individuals who died as a result of measles by the year 2018. The high rates of deaths could be due to many components: the lack of vaccination coverage distributed to areas of the countryside, lack of adequate supplies and the lack of parents’ understanding/ education to vaccinate their children.

Improvements that Leads to Solutions

According to the article, “Romania: Thriving cities, rural poverty, and a trust deficit” by Donato De Rosa and Yeon Soo Kim, Romania has both an urban side and a rural side. Bucharest is an example of Romania’s part that is thriving as a city with a contemporary and profitable system. However, some smaller villages are in the past. As many consider Romania to be an underdeveloped country, it does not have certain advantages like the United States. For instance, Romania faces poverty that has resulted in the lack of a proper health care system and resources for residents in rural areas. Providing foreign aid is a key component to allow these countries to gain stability. Becoming stable will likely help these countries alleviate poverty. This in turn will help economically and strengthen bonds with the other nations.

Member of the European Union

As the World Bank stated in the “Golden Growth: Restoring the Lustre of the European Economic Model,” the European Union (EU) has a goal to converge developing countries for improvement and also for economic benefits. In 2001, the EU integrated Romania as part of its “Golden Growth” model. The EU developed The Golden Growth model for economic convergence, in sections such as trade, finance, enterprise, innovation, labor and government.

There were significant reforms that took place in Romania as a result of the growth model. Reforms included a transition from labor-based and low technology methods to more advanced use of machinery and electronic tools. Between 2014 and 2020, Romania received 17.6 billion euros in investments to improve the nation’s poor infrastructure. The EU’s aid positively impacted Romania’s degree of efficiency and way of life. In turn, this led to Romania’s population decreasing “from 22.8 to 19.6 million since 2000, and is expected to keep falling.” This is a great indication of Romania’s improvement since more children are surviving and thus parents are having fewer children. Still, it is essential to implement better public health programs. Foreign aid to provide supplies to the population and improved education on the importance of immunization for low-income communities can also significantly boost Romania from extreme poverty.

Foreign Aid

Although the diseases in Romania appeared to be dire, the county is not alone in facing these challenges. As a member of the EU since 2007, Romania has received assistance from fellow nations for resources. Romanian authorities’ response to the coronavirus disease (COVID-19) was moderately swift, but it did not live up to its full potential due to the lack of medical supplies, equipment, and knowledge about the disease.

When the next outbreak struck, the country was better able to respond with the proper procedures and knowledge in place. In regards to measles, Romanian medical practitioners are developing strategies to spread the information on vaccines to poorer communities. These strategies range from advertisements to campaigns carried out on flyers. Romania has certainly come a long way from the original state of poverty. Overall, providing more foreign aid is a key component in forming stability in these countries. The U.S. does currently assist Romania but needs to do more with the assets it has.

– Jenny Liang
Photo: Unsplash

gender wage gap in germanyData from May 2019 indicates that German women receive an average of 21% less wages than German men. Germany holds one of the largest gender pay gaps in the European Union, a gap that has since widened due to COVID-19.  As a consequence of the gender wage gap in Germany, German women endure poverty at a higher rate than German men. However, recent policies, lawmaking proposals and continued strong stimulus provide hope and solutions for a future of gender equality within Germany’s workforce.

The Gender Wage Gap in Germany

Despite the presence of Germany’s long-standing female chancellor, Angela Merkel, and the country’s overall reputation of upholding socially progressive policies, Germany holds the third-largest pay gap in the European Union as of 2017, ranking just behind Estonia and the Czech Republic. As of March 15, 2019, for every two lawmakers in Germany’s parliament, there exists only one female.

These pay gap inequalities force German women into poverty at a rate disproportional to men in Germany, much like the rest of the world. According to the European Union’s statistics office, 7.1 million German women faced poverty in 2017 compared to 6.1 million men. Furthermore, German women face a 16.6% risk of falling into poverty compared to a 15.2% risk for men, according to a 2021 report.

The correlation of a gender pay gap and poverty exists on an international scale as well. On September 14, 2020, the U.N. reported a global gender pay gap of 16%, meaning that female employees earn 84% of the amount their male equivalents earn globally. The global gender wage gap is especially divisive for women of color, immigrant women and mothers.

COVID-19 and Pay Inequality

According to a U.N. estimate on September 2, 2020, the U.N. expects the poverty rate for women to increase by  9.1% due to COVID-19. Germany is no exception to this global prediction. According to a Reuters report from May 14, 2020, 27% of women in Germany have had to reduce their working hours for child care purposes. In contrast, this percentage is more than the reported 16% of men (in households with at least one child younger than 14) who had to cut their working hours.

In addition, Reuters reports that this disparity is more likely in households with low or medium incomes rather than higher incomes. According to a BBC poll, German women reported facing higher financial impacts of COVID-19 than men. Roughly 32% of German women reported experiencing financial impacts of the novel coronavirus compared with 24% of men.

Closing the Gap

As the gender wage gap increases with the effects of COVID-19 both across the world and throughout Germany, hope comes in the form of advocacy, legislation and awareness. On March 4, 2021, the European Union proposed a law to compel companies to close gender pay gaps. The law also allows candidates access to salary information during interviews.

The law goes as far as imposing possible sanctions on companies that fail to comply. Under this proposed law, women employees can challenge employers when not equally compensated. The challenges then go through independent monitors with the goal to seek proper payment or treatment of all female employees.

Germany’s Successes

Additionally, Germany’s consistent social stimulus throughout 2020 and into 2021 provided great economic protections for the country as a whole. Germany excels in stimulus protections and aid when compared to the majority of the world. According to The New York Times, when the primary jobholder in a family of two parents and two children loses a job in the United States, the family retains 28% of their previous income. Contrastingly, the same family would maintain 75% of their income in Germany. The New York Times describes this as a “reflection of the country’s far more generous social safety net,” listing this outcome as one of the many benefits of strong, continued economic stimulus.

Overall, while Germany continues to combat the gender pay gap as an increasing number of women and girls enter poverty due to COVID-19, recent policies surrounding transparency, accountability and fiscal stimulus in the workforce provide much hope for the future.

Lillian Ellis
Photo: Flickr

theater accessibilityThe theater is an art form that cultures all across the world partake in. In addition to being enjoyable for many people, exposure to the theater is beneficial. A study conducted by the University of Pennsylvania on impoverished residents of New York City found that residents had better long-term outcomes in areas such as “education, security and health” with greater accessibility to cultural resources. Additionally, theater helps people develop emotionally by cultivating empathy, a humanitarian characteristic essential for molding a generation willing to help others living in poverty. A common aspect of poverty is the lack of opportunities available to people. Improving theater accessibility for impoverished people is one way to provide people in poverty with more opportunities.

3 Organizations Improving Theater Accessibility

  1. The Freedom Theatre. This organization is based in the Jenin refugee camp, a camp in the West Bank with a high poverty rate. The Freedom Theater provides Jenin residents with opportunities to engage in theater and workshops through programs in schools. The theater works with children of varying ages. For example, the daycare program allows children younger than 5 to learn and develop creatively. Modeled off Care and Learning, a project that helped children in the Jenin camp work through trauma by participating in the arts, The Freedom Theatre continues this mission by working with young people to help them develop coping skills. The Freedom Theatre’s work greatly improved theater accessibility in an area that previously had few theatrical opportunities for its residents. Thanks to the European Union funding the project, The Freedom Theatre can continue its work.
  2. Khmer Community Development (KCD). The KCD organization is in the Prek Chrey Commune, a community in Cambodia near the Cambodian-Vietnamese border. KCD commits itself to improving peace and understanding in Prek Chrey. Ethnic tension between different groups in the community is an issue that Prek Chrey continues to struggle with, but KCD is addressing it with theater. Using Forum Theater, an art form developed by Augusto Boal in the 1960s, KCD encourages discussion and exploration of social issues by having actors perform a short play that addresses a social issue. Thereafter, the performance is restarted to allow the audience to intervene with ideas to shape the play and develop “a peaceful solution to the issue.” Since it started, KCD’s Forum Theater is particularly popular among youth in the Prek Chrey Commune.
  3. New Africa Theater Association (NATA). Based in Cape Town, South Africa, NATA works to provide opportunities to underserved young people in the Cape Town area. In South Africa, many people between the ages of 18-24 are unemployed. These young people are also often not receiving an education. With this age group having access to theater, the youth develop valuable skills to secure employment. More than 87% of NATA alumni are employed, in school or are continuing to work with NATA. After acquiring its own building, NATA moved to a location where it is more easily accessible to people in Cape Town and surrounding rural areas.

Thanks to the efforts of these three organizations, theater accessibility is improving for disadvantaged people. Importantly, the arts contribute to social well-being while providing valuable opportunities to help vulnerable people rise out of poverty.

– Caroline Kuntzman
Photo: Flickr

Impact of COVID-19 on Poverty in BulgariaThe impact of COVID-19 globally is undeniable. From Canada to Ukraine, every nation is fighting the virus. Bulgaria is facing a similar battle against the COVID-19 pandemic and poverty. Organizations are fighting to keep both under control while implementing solutions to address the impact of COVID-19 on poverty in Bulgaria and around the world.

The Fight Against COVID-19

Bulgaria’s first COVID-19 case occurred on May 8, 2020, which was later than many of its neighbors. The Bulgarian parliament quickly went into a state of emergency on May 13, 2020, due partially to the weak healthcare system. Discussions about how to balance the economy and COVID-19 precautions soon started. Despite the government’s best efforts, the impact of COVID-19 on poverty in Bulgaria was significant.

The Past Against the Present

Bulgaria’s past has contributed to its present state. Bulgaria became its own independent country in 1908, with the occurrence of World War I six years later. The defeat of Bulgaria in World War I saw the loss of 100,000 people. Twenty years afterward, World War II started, resulting in an eventual Soviet invasion. Communism ruled for the next five years.

These events led to economic unrest for several years. Bulgarians boycotted and protested the crisis several times throughout the years, most recently in 2013. The first protests led to Bulgaria joining the European Union but the transition was rough on living standards. Structural reforms in the late 1990s led to faster growth and better living for Bulgarians, with some economic issues in 2008, 2013 and 2014, despite overall improvement. The impact of COVID-19 on Bulgarian poverty has many experts concerned about a possible relapse into economic decline.

The Virus Against the Economy

The negative impact of COVID-19 on poverty in Bulgaria began when the country’s economy was doing well. COVID-19 dragged the economy into a recession throughout 2020 and 2021. As a result, poverty in Bulgaria in 2021 could increase before it declines. Job losses and poverty have hit young people especially hard. Bulgaria will take time to recover from the economic shock of COVID-19, according to many experts. Alongside high productivity, experts have emphasized several components that Bulgaria must prioritize for its economic recovery:

  • Optimal use of EU money
  • Reopening of businesses
  • Reducing crime rates
  • More job prospects
  • More educational opportunities

Solutions in the Present

Bulgaria’s long-term recovery will take years, but organizations are currently attempting to lessen the impact of COVID-19 on Bulgarian poverty. SOS Children’s Villages prioritizes the well-being of young people who have suffered the most from poverty in Bulgaria.

SOS Children’s Villages dedicates itself to helping lift children and teenagers out of poverty all over the world. The organization has two bases in Bulgaria — the cities of Sofia and Trjavna. Its focus is on strengthening families, improving care in families and providing support for young people. The organization also promotes advocacy and improves emergency programs for unaccompanied refugee children. Reducing the child poverty rate is the overall goal of SOS Children’s Villages in Bulgaria.

Despite the significant impact of COVID-19 on poverty in Bulgaria, organizations like SOS Children’s Villages are providing substantial aid. With the continued commitment of organizations, poverty in Bulgaria will reduce and Bulgaria will find its way to economic recovery,

– Audrey Burran
Photo: Flickr

Globalism Reduces PovertySeveral factions surround globalism, some cite statistical reduction in poverty, while others decry effects on local communities. As in all reductive thinking, oversimplification misstates the complexity, succumbing to the facility of a universal perspective. What is absolutely clear, however, is the initial decades of global trade created categorical winners and losers — the most impoverished 5% gained $.07 in daily income, while the top 1% averaged $70. The theory that globalism reduces poverty is multifaceted, and such, globalism is best described as a “two-way street.”

Global Inequality

As the global pool of wealth undeniably grows, financial resources are increasingly concentrated among a powerful economic cadre, actually increasing global inequality. Subsequently, inter-national economies are seeing more parity, but intra-national wealth distribution is increasingly unequal.

Absent the economic investment from global trade, however, developing nations struggle to modernize. Lacking foreign capital investment to create sustainable industries, an estimated 95% of Indian youth are forced into informal child labor. In the nation-state equivalent of “Sophie’s Choice,” governments are forced to participate while the premise that globalism reduces poverty remains dubious.

Relative and Absolute Poverty

Early returns from globalism showed a reduction in extreme poverty from 36% to 19% between 1990-2008 and capitalists trumpeted imminent eradication of poverty by the benevolent “invisible hand” of market forces. Undoubtedly a monumental achievement, millions have benefited from access to foreign markets.

As always, the devil is in the details. Poverty is an indiscriminate measure, a theoretical categorization defines the powers that be. For the World Bank, poverty is a function of daily income. But, between 1990-2018, the threshold indicating extreme poverty has preposterously risen a mere $0.90 while global GDP grew by $60 trillion during the same period. Given such disproportionality, it is difficult to see how globalism reduces poverty.

Global Poverty or Global Inequality

Ambiguous poverty metrics belie a true consequence of globalism, that the top percentile claimed more than 60% of growth. To retain these substantial gains, it is the providence of influential international corporations and institutions to promote globalism. Exceedingly fungible, poverty metrics become a prism through which various interests and policymakers justify exploitative agendas, often accompanied by stifling conditionalities.

As the International Monetary Fund and European Union counsel draconian measures to fledgling economies, local “governments often find it politically easier to cut the public expenditures for the voiceless” impoverished as connected wealthy classes are “disinclined to share in the necessary fiscal austerity.”

Equally as true in developing nations, entrenched hegemonies have little incentive to shoulder the burden of globalism and frequently siphon economic growth for personal enrichment. Irresponsible stewardship of finances and resources, as always, disproportionately affects voiceless and impoverished communities.

Generations after the ouster of foreign monopoly United Fruit Company from Latin America, indigenous farmers’ share of profit is essentially stagnant as corrupt domestic entities pocket revenue. Globalism reduces poverty only when sufficient protection is guaranteed to populations most at risk of exploitation and achieved only when international, federal, corporate and municipal institutions communicate with disenfranchised communities.

Paternalism in South Africa

Under the best of circumstances, sudden inundation of investment and foreign influence is devastating. For countries without robust legislative institutions, it is cataclysmic. The hyper-racialized-apartheid bureaucracy of South Africa was particularly ill-prepared for the rapid modernization required by globalism.

Despite democratic revolution, political bodies could not address the dual responsibilities of erasing paternalistic and racist policies while simultaneously reentering international trade. After centuries of protectionism and isolation, South African society was a manicured house of cards temperamentally opposed to foreign influence.

The draconian society, which enslaved the Black majority, created a delicate homeostasis and the post-apartheid government was manifestly incapable of protecting the citizenry as globalism began in earnest. A systematically underprivileged class was ripe for exploitation.

Skills-Based Bias

During apartheid, underpaid, low-skill labor provided the engine for economic growth in South Africa. Known as “lumpenproletariat,” these peri-urban shantytown workers relied on the largesse of landed aristocracy for survival.

As a matter of course, economic opportunities through education represented an existential threat to White hegemonies. Because “it is surely the lack of opportunities of the less advantaged that is the real concern” in reducing poverty, undereducated South Africans were dispositionally unable to profit from economic growth.

Compounded by exclusion from land ownership, Black South Africans possessed neither the capital nor the skills for socio-economic gain. Various policy initiatives for Black Economic Empowerment (BEE) have targeted inequality, but generations of subjugation cannot be erased during the short lifespan of South African democracy.

Case Study: South African Winemakers

Overregulation and heavy subsidies throughout the 20th century created an extremely inefficient South African wine industry. Traditional focus on bulk production for domestic markets encouraged widespread plantation of high-yield, low-quality cultivars that were antithetical to international demand for higher quality. With a contorted supply chain entirely unfit for global competition, South African winemakers responded by replanting 50% of vineyards between 1990 and 2005.

To finance these changes, producers required foreign investment. At the behest of multinational distributors, conglomeration through a spate of mergers destabilized traditional market structures — the consolidation of Distillers and Stellenbosch Farmers Winery eliminated 2,000 jobs alone.

Moreover, a weak currency forced producers to rely on foreign capital for infrastructure improvements to replace apartheid-era slave labor. As South African winemakers became increasingly dependent on external financing, mechanization reduced permanent employment by 60%.

The Unequal Distribution of Benefits

Nonetheless, foreign investment allowed the wine industry to grow. Exports increased tenfold during the 90s, and by 2002, South Africa was the fastest-growing sector in the all-important British market. Representing 45% of domestic exports, the fortunes of South African winemakers were existentially linked to unpredictable foreign markets.

But, native producers have seen little benefit. As of 2018, the average return on investment for those costly infrastructure upgrades is an abysmal 2%. And after three decades of democratic rule and countless land reforms, Black ownership in the wine industry is 3%. However, a goal of 20% by 2025 was established in 2007.

A Two-Way Street

In the hyper-competitive wine trade, “survival is not made any easier by the fact that globalization is a two-way street.” The South African wine industry is just one example of countless local communities at the mercy of free markets.

Nonetheless, increased trade and economic growth from globalism affect poverty. The 21st century will be judged by how well the fruits of international wealth are distributed to the most vulnerable populations. As early growing pains subside, poverty eradication is within grasp if the world so chooses.

Kit Krajeski
Photo: Flickr

Trade Partnership Between The EU And India
The European Union and India have recently agreed to resume trade negotiations since 2013. The European Union has acknowledged that trade leads to the reduction of national poverty, a huge benefit. The trade partnership between the E.U. and India is strategic to the E.U. in terms of India’s geographical location and natural resources.

National Poverty in India

In India, 30% of the population lives under extreme poverty, meaning that individuals earn less than $1.25 per day. India is one of the subcontinents with the highest toll of poverty in the world. The lack of resources creates a chain reaction, leading to unemployment, child labor and lack of education. Similarly, the poverty rate in India is concerning, alarming other nations to develop impactful relations with India. The economy in India bases on exporting spices, coffee, tea, tobacco, iron and steel. The current COVID-19 pandemic struck India with the lowest economic growth in years. It affected rural areas in India the most. People are reducing spending due to the crisis and financial situation. The European Union has agreed to trade with India to pursue common interests.

Trade Agreements Between the EU and India

The European Union agreed on trading with India for better development and strategic commerce. Europe and India froze their relationship in 2013. This decision strongly affected India’s financial situation. Trade partnership between both nations creates impactful relationships and empowers women. Strengthening the relationship between both countries strengthens human rights and reduces the poverty index, helping civil society. The trade deal between nations is 8.5 billion euros. The European Union and India agreed to build infrastructure projects to increase cooperation.

Both nations have compromised to reduce carbon emissions and increase renewable energy. The pledge between both will improve citizens living conditions and minimize national poverty. According to the European Commission, India is amongst one of the fastest-growing economies in the world. The trade partnership with the European Union could potentially grow India’s GDP up to 6%. The European Union will exhaust available channels to work with India to ensure a transparent market and respect multilateral obligations.

Trade Drives International Development

Open trade policies enable economic development in countries. The cooperation of international trade will benefit the importer and exporter in numerous ways. For instance, trade is critical when it comes to ending global poverty. Multilateral relationships create a win-win scenario, improving productivity and innovation. Poverty means the concentration of individuals deprived of basic needs, often disconnected from global or even regional markets. Consequently, increasing trade creates jobs and grows the exporting sector.

Improving Living Standards in India

In conclusion, emphasizing trade partnership is a national growth strategy. With the collaboration and agreement, India could increase up to 6% of its annual GDP. According to the World Bank, trade-open markets help create an inclusive and integrated environment. The European Union will help India significantly reduce national poverty levels. All sectors in India benefit from bilateral and multilateral negotiations. Above all, it is essential to have an equitable economy to ensure growth in society. The United Nations has prioritized poverty as a millennium development goal emphasizing MDG 8, which corresponds to international trade as a growth strategy to reduce poverty. Thus, the trade partnership between the E.U. and India is conducive to India’s future economic success.

Ainara Ruano Cervan
Photo: Flickr

Refugee camps in Bosnia and Herzegovina
Bosnia and Herzegovina is a southeastern European country situated in the western Balkan Peninsula of Europe. The state has borders with Croatia, Montenegro and Serbia. The migration process that peaked in 2015 had an impact on many European states. A mix of civil wars, violence and bad governance in North Africa and the Middle East pushed people outside of their motherlands. According to the statistical data of the United Nations High Commissioner for Refugees (UNHCR), more than 1,015,078 people irregularly crossed the Mediterranean Sea in 2015 and 3,771 people died or disappeared at sea during their journeys to reach Europe. These migrations have resulted in a need for refugee camps in Bosnia and Herzegovina, which has land borders with the E.U.

Refugees in Bosnia and Herzegovina

The number of asylum seekers and migrants arriving in Bosnia and Herzegovina drastically increased at the end of 2017. An average of 32 new arrivals registered per month between January-November, but in December, the number of newcomers reached 198. The tendency continued into 2018 and the number of asylum seekers and migrants increased from 237 in January to 666 in March. Since the beginning of 2018, approximately 70,000 asylum seekers and migrants arrived in Bosnia and Herzegovina via the Western Balkans migration route. Based on the United Nations (U.N.) statistics, around 8,000 asylum seekers and migrants are currently present in Bosnia and Herzegovina. In most cases, new arrivals were from Syria, Libya, Palestine, Afghanistan, Iran, Algeria and Iraq.

Due to economic and social reasons, new arrivals mostly do not have the willingness to stay in Bosnia and Herzegovina. Their main priority is to reach E.U. countries. However, strict border controls by the Croatian authorities and the slow readmission process by the E.U. have made the situation more complicated. In the last years, non-governmental organizations (NGOs) and human rights groups have documented violence against asylum seekers and migrants by Croatian border police. According to the International Organization for Migration (IOM), there are five fully operational Temporary Reception Centers in Bosnia and Herzegovina. At the same time, 5,616 asylum seekers and migrants are present at Temporary Reception Centers and 8,116 asylum seekers and migrants in Bosnia and Herzegovina.

Current Struggles in the Refugee Camps

The poverty level of the residents in refugee camps in Bosnia and Herzegovina remains very high despite the humanitarian aid of the E.U., U.N. agencies, humanitarian organizations and Bosnian and Herzegovinian authorities. Especially during the winter, all camps lack the most basic conditions for hosting people. Since the fire of the main camp in Lipa, residents of camps live in tents built by the Bosnian and Herzegovinian military. The refugee camps in Bosnia and Herzegovina provide minimum comfort from the harsh weather conditions and 13 people live in one tent on average.

Food security remains a significant problem in camps for asylum seekers and migrants. According to U.N. data, 67% of residents of camps eat one meal per day. Asylum seekers and migrants purchase second and third meals with their own money. Personal funds of people are running out and they do not have income sources. Some residents of camps beg for money or sell tissues in the streets. Also, food security can change by location. Camps in the Sarajevo area receive food on a regular basis. However, residents of camps on the east and west of the country suffer from a lack of food distribution.

At the same time, people do not have any access to education while they live in refugee camps in Bosnia and Herzegovina. By international law, asylum seekers have the right to primary and secondary education.

European Initiatives

Since early 2018, the E.U. provided €40,5 million directly to Bosnia and Herzegovina and project implementing partners. These funds help address the problems asylum seekers and migrants face in the refugee camps. Despite all of the humanitarian aid from the E.U., humanitarian organizations, non-governmental organizations and local authorities, problems remain. After visiting the notorious Lipa camp in the early months of February 2021, the European Commissioner for Home Affairs Ylva Johansson recommended a new European program for migrants and asylum seekers. However, to start a new program, consent is necessary from all E.U. members.

– Tofig Ismayilzada
Photo: Flickr