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Inflation in Egypt 

Inflation in EgyptIn 2022, inflation has been sweeping across the world like wildfire, and it has impacted the world’s impoverished the most severely. Here is some information about inflation in Egypt.

Inflation on the Rise

Inflation in Egypt rose to 13% in June 2022 from 11% in April 2022, after only seeing an inflation rate of 4.8% at the end of 2021. The Ukrainian war caused an increase in costs of goods which also caused the interest rates in the country to rise. These interest rates were already some of the highest in the world before the increase. These increases in the costs of imported and exported goods have made it much more challenging for the working class of the country to make a living.

There has been an increase in the prices of simple goods like bread, rice and sugar, making it hard for families to sustain themselves, and even things like nuts have moved into the category of luxury for most families. Inflation has affected individual families and Egypt’s economy as a whole as Egypt’s purchasing index contracted for the 18th consecutive month in May which is what caused the country to raise the interest rates for the first time since 2017. This has put a strain on small business owners who sell goods to survive because they no longer can afford to buy the product that they sell.

Humanitarian Impact

The U.S. has donated $30 billion in economic aid to Egypt since 1978 in order to provide stability to the region. USAID’s current plan to help the economy is to reduce the rising cost of food in Egypt. U.S. aid to Egypt reduced by 85% from 1998-2020 from $833 million to $125 million in 2020, however, the Biden Administration has requested $1.43 billion in aid for Egypt in 2022 amid the pandemic and the Ukrainian war.

The world cannot control what goes on in terms of the Russian and Ukrainian war, so the Goal of USAID is to impact the country in as many ways as possible from within. As of April 2022, the Biden Administrations’ funds are to go toward creating more and better jobs and enhancing the role of government officials to help the institutions of Egypt meet the economic needs of their people. Inflation in Egypt has been the cause of many people losing their jobs and so plans created to foster the economy are very relevant and should prove useful. Hundreds of thousands of jobs have emerged since 1978 in Egypt due to U.S. involvement, and that growth could be beneficial to combating inflation in Egypt.

Looking Ahead

The inflation crisis in Egypt is far from over, but the world is taking the proper steps in order to attempt to turn the tides. It may take months or years for one to be able to see the impact of the funds that Egypt received, however, the people of Egypt know that their struggle is not going unnoticed and that can be the spark someone needs to keep pushing for a little bit longer.

– Alex Peterson
Photo: Flickr

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The Billion Dollar Programming Industry in Belarus

Programming Industry in BelarusThe growth of the programming industry in Belarus, dubbed as the IT sector, took the country’s economy by storm. It helped the country reduce its “brain drain,” a phenomenon defined by the emigration of professionals from their home country to a nation that provides better pay and opportunities. Belarus’ IT sector exports grew from $218 million in 2010 to over $700 million in 2015. This amazing turnaround raises some key questions. Namely, why did the programming industry in Belarus blossom, and how has it benefited the country?

Origin of the Programming Industry

The growth of the programming industry is built on the Soviet Union’s strong educational focus on science and technology. Under the Soviet Union in the late 20th century, schools often focused on teaching students science and technology because they lack ideological barriers. These fields needed no censoring to fit the ideas promoted by the Soviet Union. This prioritization remains, and students in Belarus tend to choose technical specializations over those in the social sciences. For example, nearly 4,000 young Belarusians graduate each year with IT-related degrees. The size of the local tech talent can be explained by state policies supporting the IT industry’s growth.

The combination of direct subsidies and tax cuts allows 1,000 tech companies to have their offices in Belarus. Of these, the 50 largest employ between 100 and 7,000 employees each. In 2005, the Belarus government sponsored the construction of the High Tech Park, a tax and legal regime designed to develop the IT sector. Since then, it’s become an incubator for various tech companies due to its preferential tax regime and the resulting lower operational costs that companies incur. The government’s investment in the sector and fiscal benefits helped it grow tremendously in the past decade.

Benefits of the IT sector

While the IT sector only represented a 1% share in the gross value added to the economy in 2014, its benefits span beyond the industry itself. With Belarus’ 2015 average salary stagnating at $350 per month, the IT sector’s average salary of $1,600 attracted many people to the industry. This incentivized many individuals to remain in Belarus rather than moving abroad. As a result, the IT sector reduces brain drain as educated professionals stay in the country and help grow its industry.

Furthermore, the increased salaries not only enabled workers in the IT sector to better support their own families but also increased investment in research and development and Belarus’ education system. Of the 460 organizations orchestrating research and development activities, 74 resulted in university laboratories. Tech companies began providing direct investment in the Belarusian education system, accounting for 10.4% of total research and development staff in the country. Their contribution ensures that there is an ample supply of computer science graduates.

An Exciting Future

The growth of the Belarusian programming industry in the last decade brought about significant economic growth. This dramatically increased the population’s opportunities for pursuing computer science and unlocked the possibility of a larger salary. Now, IT workers better support their families and make a greater contribution to the economy by staying in Belarus. With the education system’s continued investment in turning out graduates with science and technology degrees, the booming programming industry in Belarus promises amazing results.

– Max Sidorovitch
Photo: Flickr

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Tech Revolution in Pakistan Transforms A Province

Tech Revolution in Pakistan
With around 53 million Pakistanis being under the age of 30 (60 percent of the population) this large conglomeration of youth presents a ripe opportunity for fostering future growth and development in this country’s technology sector.

The northern province, Khyber Pakhtunkhwa, seems like an unlikely place for a tech revolution to occur due to current challenges in security, governance and limited opportunities, which have created instability through few economic and employment opportunities, ultimately crippling a young person’s emergence into adulthood.

However, this tech sector offers a creative space for young minds to generate new ideas, increasing possibilities for “common business, social, civic and political challenges.”

An article in the World Bank describes this potential for a tech revolution in Pakistan in more depth, explaining how technology is able to transcend geography through its access to the online world.

“Global connectivity and a growing digital economy mean that KP’s youth can connect to jobs available online. And a greater number of free courses and online training means budding entrepreneurs can be found just about anywhere. In 2013, the Government of KP, in partnership with the World Bank, devised a strategy to focus on linking its youth with global employment opportunities and to promote the empowerment of tech entrepreneurs. Two years later, Peshawar is emerging as one of Pakistan’s tech hubs and its image and the image of local youth is changing.”

The real change began when the focus shifted to concentrating on the people who were behind the coding and building apps, says the World Bank.

By creating the Digital Youth Summit (DYS), “a co-organized tech conference between local partner Peshawar 2.0, the KP IT Board and the World Bank,” opportunities were created for “networks, community building and vibrant discussions on themes of innovation, entrepreneurship and freelancing.”

Due to the exciting hands-on training, workshops and world-renowned speakers from the business startup and tech communities, the tech conference has gained popularity. It has brought together 500 people and reached a potential 1.2 million through global social media channels, says the World Bank.

It is only through these conferences and events that a broader strategy for generating employment opportunities can be created, which ultimately reaches its goal of instilling pride in the local youth. Only through support from the community can innovation, entrepreneurship and financing fund the future for the tech revolution in Pakistan.

– Nikki Schaffer

Sources: World Bank, Digital Youth Summit
Photo: World Bank

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Hospital and Rehabilitation for Disabled Children

disabled children
The Hospital and Rehabilitation Center for Disabled Children, the only children’s orthopedic hospital in Nepal, is working toward treating Nepalese children and performing affordable surgeries that would otherwise go undone.

In Nepal, about 83 percent of the population lives below the $2 a day poverty line. Once a child gets sick, it is unlikely that its family can make it to a treatment center or hospital, and less likely that the family could pay for for the treatment without crippling its savings. The HCDR was created to change that.

The HCDR was erected in 1997, but the team has been working with children’s surgeries since 1985 in remote villages and smaller buildings. The organization’s founder and current leader is Dr. Ashok Kumar Banskota, a Nepalese doctor who was educated in India and the United States.

Once he returned to Nepal after his studies, Dr. Banskota wanted to make healthcare accessible to all who need it in his home country rather than to just the rich or those in the most accessible regions.

The HCDR is a tertiary level pediatric hospital that performs about 1,500 surgeries each year, and provides physical therapy and prosthetics when needed. In order to reach as many patients as possible for aftercare, HCDR has community-based rehabilitation services that follow up with patients in their villages and show families how to properly care for their children after surgery.

The team has worked hard to make its care accessible to all, with the average cost of surgery at only $151. It has also incorporated home visits to make post-surgery adjustments easier on the patients as well.

HRDC works on continually training new doctors to keep its hospital well staffed. They get trained in Primary Rehabilitation Therapy in order to continue recovery for patients. There are also periodic courses offered to keep everyone up to date.

A study done to test the impact of HRDC on the patients it has treated previously showed positive results. The study showed over 90 percent of the children reported positive impact from HRDC treatment on further growth and development, both physically and socially.

– Courtney Prentice

Sources: Global Giving, Himalayan Foundation, Google, HRDC Nepal
Photo: Talk Vietnam

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5 Steps to Increased Economic Development in Africa

5 Steps to Increased Economic Development in Africa
Recently, Nigeria’s Finance Minister Ngozi Okonjo-Iweala gave a speech at the International Institute for Strategic Studies outlining the steps that need to be taken to improve economic development in Africa by creating jobs and reducing unemployment. Here are the five steps Okonjo-Iweala outlined for creating economic growth in Africa and developing jobs for young people across the continent.

    1. Develop a critical infrastructure. The lack of modern infrastructure in Africa costs the continent “at least 2% in GDP growth annually.” Among the systems that Africa needs to develop are an expansive electrical grid, roads, railways, and communications. These systems allow for more efficient production and transportation of goods, allowing for increased economic output. Additionally, the continent needs to work on establishing clean water and sanitation systems, which will result in improved public health.
    2. Develop human capital. Africa must invest in the skills of its people in order to advance their standard of living. Currently, “33 million primary school-aged children in Sub Saharan Africa do not go to school,” and “40% of Africans over the age of 15 and 50% of women above the age of 25 are illiterate.” Africans need improved access to education in order to work in skilled trades and earn higher wages.
    3. Build safety nets. Throughout Africa, there are few systems that are established to help citizens who are living in poverty or have been negatively impacted by natural disasters. Okonio-Iweala states that Africa must work to establish tax systems to collect revenue for providing assistance to those in need throughout the continent.
    4. Address a growing population. In 2010, Africa was home to more than 1 billion people. The population of Africa is expected to double to 2 billion people by the year 2050. In order to help alleviate poverty in the continent, a focus should be placed on family planning. By reducing the number of births per woman in Africa, the overall GDP per capita will increase, resulting in a higher standard of living for Africans.
    5. Embrace Africa’s youthful population. Africa’s youth represents the future of the continent. By establishing programs that focus on the intellectual development and health improvement of young Africans, the continent will make an investment in its future. Africa has true potential for future economic growth if the continent’s nations invest in its young population, providing them with the tools they need to be successful in a global economy.

– Jordan Kline

Sources: Visualizing, The Guardian, Achieve in Africa
Photo: UN

DHL in Africa

DHL in Africa
Ken Allen, CEO of DHL, has a lot to celebrate:  business in Africa is booming. DHL is in business to make a profit. Luckily for Africa, their business is working out the logistics of connecting frontiers of business to demanding consumers. The numbers for Africa make it an extremely appealing continent in terms of frontiers: there is a 2:1 inbound ratio. As export/import experts, DHL fits right in. They have an office in most countries and offices in all major cities. They partner with retail and other outlets to take advantage of expanding networks.

It is not all smooth sailing for DHL in Africa. There are still the issues of navigating through many countries without clearly marked street signs and the prevalent corruption. Allen responds that DHL has been in Africa for 25-30 years. The logistics of getting around in a place without street signs has been worked out: DHL flies their planes into Legos, for example, then uses smaller DHL carriers to get to regional destinations. As for the corruption, DHL is not a government watch-dog. They are in business to do business. Allen states that most officials see DHL as a positive force and corruption is stronger in perception than in reality. Their role is not to question or change the strict customs regulations, but to interface on behalf of their customers and the regulations to make the transactions as smooth as possible. The goal of DHL is to build the best architecture to make it easy to do business.

– Katherine Zobre

Source: CNN
Photo: Mwebantu

Emerging Markets Invest in Africa

Investment
The growth story in Africa is remarkable and continuing to catch the attention of the global economy. Emerging markets are investing in Africa at rates that are quickly outpacing developed markets.  A sign that business prospects are good and the emerging markets that were just recently at the beginning of growth are making big enough strides to begin investing in other markets.  Africa is working hard to reduce poverty and a growing middle class is catching the attention of markets and companies ready to expand their potential for growth.

Despite a drop in the number of new foreign direct investment projects globally, Africa was able to see growth to 5.6 percent in 2012 in their share of direct investment.  Ernst and Young’s 2013 Africa Attractiveness survey notes an increase in investments from China and the United Arab Emirates. The UAE has also recently announced key partnerships with governments on the continent to continue the relationship between African development and UAE investment.  While the United States, Britain, and France have typically been the biggest investors in Africa, only the UK showed increased project numbers in 2012. Investment projects from China grew 28 percent over the same time period.

From 2007 to 2012, investment from emerging markets into Africa grew at a rate of over 20.7 percent while investment from developed markets grew at only 8.4 percent.  The numbers tell the story of a shift in investment and interest in the continent of Africa.  The story of African growth and development is real and backed by Ernst and Young’s Managing Partner for Africa. The potential for growth in the next 10 to 20 years is bigger and what was once considered a desolate, poverty-stricken continent is fast emerging as a story of hope, poverty reduction, and growth in purchasing power.

There is still much work to be done in Africa and those concerned with development must still keep an eye on those living on less than $2 a day. But in terms of initial success, Africa is one continent to cheer for.

– Amanda Kloeppel
Source: The Economic Times

5 African Nations Poised For Economic Growth

africa nation economic growth

Africa promises a bright new future. Population projections show that in the next 25 years Africa will more than recover its population losses from the ’80s and ’90s. At the same time, investment companies see Africa as having some of the world’s most promising opportunities for sharp economic growth.

1. South Africa is the leading economy in the continent. South Africa plays the role of the continent’s economic powerhouse, by providing the continent’s other countries with goods and services, as well as investments. South Africa has a stake in seeing the standard of living rise in its potential trading partners and that this will continue to stimulate economic growth in the continent.

2. Nigeria has a large population base and a thriving petroleum export business. Nigeria is consolidating political reform, as exemplified by two peaceful transfers of power within the past decade. Nigeria also has demonstrated its prowess in mobile telecommunications technology.

3. Angola is growing rapidly due to oil exports. Angola’s economy is vulnerable because it lacks diversity but for the time being it is rapidly expanding its infrastructure as part of a controversial “infrastructure for oil” trade agreement with China, which critics believe benefits the Chinese more than the Angolans.

4.  Ghana is “one of the fastest growing economies in the world.” Ghana’s economic growth is based primarily on its oil production, but  political and economic reforms that were in place nearly two decades before oil was discovered in 2007, play a major role in the country’s long-term economic prospects and sustainability, even though Ghana’s rate of growth will not remain at its current astronomical levels.

5. Ethiopia represents a huge market that can drive economic growth and integration in the Horn of Africa region. Ethiopia’s economic growth has been fueled by hydroelectric power, which enables it to export electricity to neighboring countries. Ethiopia has also benefited from large-scale government investment in agriculture, industrialization, and infrastructure.

-Essee Oruma

Source: Christian Science Monitor

USAID Partners with DFID to Fund Development

USAID Partners with DFID to Fund DevelopmentThe United States Agency for International Development (USAID) announced a partnership today with the Department for International Development (DFID) of the United Kingdom “to invest in cost-effective innovations to humanitarian challenges.”

The USAID/DFID Humanitarian Innovation Initiative seeks to further rewards for those involved in the USAID Development Innovation Ventures (DIV) program, a results-based project for new, groundbreaking development ideas. Seeking to solve problems like malnutrition, high mortality rates, and a lack of infrastructure, the DIV competition gains additional support from this new joint venture.

Projects submitted to DIV are eligible for up to $1 million in grants; if the concept has already been proven and is not an untested idea, grants can reach up to $15 million. Successful ideas have harnessed technology like SMS and GPS to empower individuals in developing countries with access to the kind of information developed nations to take for granted.

USAID Administrator Dr. Rajiv Shah supports the DIV program because it serves to “help strengthen the resilience of communities to disasters and care for the least vulnerable among us.” All parties with potential ideas are encouraged to submit their applications to the DIV website. With initiatives like DIV, there are strong incentives for budding social entrepreneurs to develop and implement unique programs for reducing poverty around the world.

– Jake Simon

Source: USAID/DFID