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3 Ways Livelihoods in Brunei are Improving

Livelihoods in Brunei are ImprovingBrunei is an independent Islamic sultanate on the northern coast of the island of Borneo in Southeast Asia. Some statistics about the country still remain unknown, such as the percentage of Bruneians living in poverty. This is due to the fact that Brunei still does not have a poverty line as of 2018. However, one can use other means to measure Brunei’s poverty. Additionally, other data can help ascertain whether or not livelihoods in Brunei are improving citizens’ unquantified impoverished situations.

Economic Freedom Index Score (EFIS)

One way to look at this is the Economic Freedom Index Score (EFIS). One can think of this as Bruneians’ freedom of choice as well as their ability to acquire and use goods. Brunei’s EFIS is 66.6 and the nation ranks 61 out of 180 countries. Singapore, the top country, comes in at 89.4, making it the world’s most free economy in the 2020 Index. Then, there is North Korea, the bottom country, which has a score of 4.2. Despite Brunei’s moderate EFIS score, the country is working to boost that number. There are several ways livelihoods in Brunei are improving.

3 Ways Livelihoods in Brunei are Improving

  1. Self-Empowerment Initiatives. His Majesty Sultan Haji Hassanal Bolkiah says Brunei has drafted “self-empowerment initiatives” to create more job and entrepreneurship freedoms. Oil and gas production supplies 90% of government revenue and 90% of exports. However, these industries have limited job opportunities. Now, the country strives for economic diversification to reduce reliance on oil and gas. To support these endeavors, the administration will simplify the processes to start a business and develop business regulations. The most significant changes include amending certain laws allowing businesses and investors to operate without a license and reducing the wait times for a business to open.
  2. Employment. Unemployment rates, regardless of education level, are high. Although Bruneians with a vocational background have the highest rates of unemployment, the youth are also at risk of higher rates of unemployment. According to the International Monetary Fund (IMF), the unemployment rate among young Brunei people increased from 25.3% to 28.9% in 2019 — the Association of Southeast Asian Nations (ASEAN) held the highest percentage. A suggestion from the IMF is to invest in technology and digitalization to capitalize on the tech-savvy generation. Also, the Manpower Planning Council is setting up a labor-management information system to lower unemployment among college graduates. This will be a cooperation between government agencies, the private sector and education institutions to ensure the turnout of employable graduates.
  3. Welfare. The Sultan also says that people’s welfare is of utmost importance. This assertion stems from taqwa, the basic Islamic principle of God-consciousness together with brotherhood, equality, fairness and justice. This concept is the basis of true Islamic societies. With this in mind, livelihoods in Brunei are improving by adjusting the financial aid requirements. This effort attempts to lift beneficiaries out of poverty and continue to provide assistance to citizens who need it. With these new rules, the government will be able to map welfare recipients and learn where there is a need to advance workforce skills and job opportunities. The implementation of this new system is more important than ever before due to COVID-19 and an expected increase in benefit recipients. Now, however, Brunei authorities can better prepare themselves to leave no one behind, per taqwa.

Looking Forward

Overall, livelihoods in Brunei are improving. The administration has focused itself on economic diversification to become less reliant on oil and gas. The unemployment rate has increased, but the country is undergoing steps to combat this with education and jobs. Also, Brunei is updating welfare programs to include further applicant information. This will assist in financial help as well as learning where education or job options are a factor in poverty.

These changes could create a cycle of prosperity and bring more Bruneians out of poverty. However, Brunei needs to establish a set poverty line. That way, the nation can more accurately assess its poverty situation and how much progress is still necessary.

– Heather Babka
Photo: Flickr

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Judiciary Asserts Independence in Election in Malawi

election in malawiThe people of Malawi went to the polls in May 2019 eager to make their voices heard.  Due to some electoral static, however, the world only recently received their message. Marred by allegations of impropriety and delayed by legal challenges, a resolution came in June 2020 when the country repeated the election. On June 27, 2020, 13 months following the initial vote, the election in Malawi resulted in Lazarus Chakwera becoming the nation’s next president. Thanks to courageous actions from Malawi’s top court, a nation imperiled by electoral dysfunction has achieved a peaceful transition of power.

The Election in Malawi

Shortly following the initial presidential election in Malawi on May 21, 2019, President Peter Mutharika won by a narrow margin. However, rumors of irregularities in the vote tallies began to cast doubt on the outcome. Of the 5.1 million votes cast, Mutharika won 38.6% of the vote, compared to 35.4% and 20.2% for his closest competitors. The opposition candidates, Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the United Transformation Movement, filed a lawsuit. This prompted an investigation of the Malawi Electoral Commission’s (MEC) handling of the election in Malawi. Additionally, the angst from the controversy spilled into the streets, where thousands of citizens engaged in peaceful protests.

Following a protracted investigation, the nation’s constitutional court invalidated the results of the election in Malawi, citing “widespread, systematic and grave” anomalies. In a voluminous report, the five-judge panel cataloged a panoply of suspicious behavior. This ranged from mathematical errors to the use of correction fluid on tallying forms. There were mixed reactions to the court’s surprising decision, as Mutharika retained power while the inquiry took place. In addition, Mutharika decried the decision as “a great miscarriage of justice.” However, others lauded the decision as a powerful demonstration of judicial independence and a hallmark of a functioning democracy.

A Second Chance

The constitutional court’s decision ordered that a new election take place within 150 days of their announcement, which came in February 2020. In June 2020, the Parliament set election day for June 23. Justice Chifundo Kachale oversaw the re-run. Kachale replaced Jane Ansah as chairperson of the MEC following Ansah’s role in the initial vote. Despite the court’s stern ruling, the extent of potential election malfeasance in the initial vote remains unclear.

Leaders of the opposition claimed that correction fluid inflated the vote totals of the incumbent. In their lawsuit, the leaders implicated the MEC. Conversely, the MEC argued the fluid had only been used to alter procedural information, not the vote totals. Luke Tyburski of the Atlantic Council’s Africa Center inspected the actual results sheets, which citizens can access online. Tyburski’s analysis suggests “human error instead of malicious tampering” likely caused the alterations. However, Tyburski suggests that this “does go a long way toward discrediting much of the sensational rhetoric surrounding the vote.” Whether malice or simply human error caused the error, Malawi’s top court felt compelled to clean the slate with a re-run.

Poverty and the Election in Malawi

The judiciary’s choice has broader implications than simply who serves as Malawi’s president. For one, it fortifies the people’s faith in the rule of law. Elections with contested outcomes are not new to Africa. Many leaders hold shambolic votes with impunity, while other electoral disputes cause a descent into chaos or even civil war. What makes the election in Malawi unique is the willingness of its high court to assert itself when warranted. It would have been easy to simply sanctify the initial elections in accordance with the wishes of the president. But the court chose otherwise. Although needing the courts to intervene in the democratic process is far from ideal, it may be necessary to restore the public’s confidence in free and fair elections.

As Malawi relies heavily on foreign assistance, this show of sound governance can only serve as reassurance for Malawi’s benefactors. These include the International Monetary Fund and the World Bank. Additionally, the court’s decision demonstrates to potential trading partners that the nation can be a stable ally. Despite a GDP growth rate of 4% in 2019, the nation’s extreme poverty rate is still around 20%. As such, the international community must see Malawi as deserving of investment and assistance to help lift its people out of poverty. The result of the re-run can do just this.

Looking Forward

When Malawians returned to the polls on June 23, 2020, the international community had a keen eye on the proceedings. This deterred potential bad actors from any hijinks and ensured that the MEC did its due diligence in properly tallying the votes. Chakwera won convincingly, garnering nearly 59% of the vote, and became president. As a result, the people of Malawi won, and democracy was victorious. This is a positive step toward garnering international aid for Malawi and reducing the poverty its citizens face.

– Brendan Wade
Photo: Flickr

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Innovations in Poverty Eradication in Côte d’Ivoire

Innovations in Poverty Eradication in Côte d'Ivoire
Côte d’Ivoire, otherwise known as the Ivory Coast, is a country nestled in the western panhandle of the African continent. Though the country has been war-torn since 2010, Côte d’Ivoire is becoming a vital part of the world economy. Poverty in Côte d’Ivoire affects more than 46% of the population; however, the country is working to provide more jobs, funding and resources for its citizens. Here are five innovations in poverty eradication in Côte d’Ivoire.

Working with World Organizations

The government of Côte d’Ivoire is working with world organizations to help Ivorian citizens. With aid from the World Bank and the International Monetary Fund (IMF), Côte d’Ivoire is supporting economic growth and the eradication of poverty through Results-Based Management (RBM) and the implementation of Poverty Reduction Strategies (PRS).

Within the PRS document established in 2009, government officials outlined multiple poverty eradication goals. Among these goals are greater accessibility to food and healthcare as well as increased job opportunities for men and women.

Another notable organization working alongside the government to eradicate poverty in Côte d’Ivoire is the Sustainable Development Goals Fund (SDGF). This organization seeks to help vulnerable populations, such as women and children, achieve financial stability through training, counseling and education. Specifically, SDGF provides education for women who have dropped out of school or who are looking to generate their own income.

New Strategies for Ending Hunger

Among the innovations in poverty eradication in Côte d’Ivoire is adopting new strategies for ending hunger. In 2016, the Côte d’Ivoire government, with help from the World Food Programme (WFP), created a National Development Plan (NDP) to facilitate the country’s transition to becoming a middle-income economy by 2020. With help from WFP, the Ivorian government aims to increase access to food banks and work more closely with other organizations to end malnutrition.

Previously, in 2009, the Ivorian government worked with the IMF and World Bank to establish strategies for ending hunger throughout the country. To achieve this goal, Côte d’Ivoire vowed to modernize storage techniques of fresh produce, make food more widely accessible, increase the production of rice and update health standards for food supply.

Other Avenues for Helping Citizens

In Côte d’Ivoire, the mining sector is undervalued. While the mining industry previously focused on gold, there is an increased interest in nickel, iron and manganese. By expanding geographical data of the land, the mining industry could see vast profit and job increases.

Further, enhancing transportation — public and private — could help citizens escape poverty in Côte d’Ivoire, as well as better integrate the country into the international economy. Allocating more funds to road infrastructure, road maintenance and other modes of transport can facilitate domestic trading. Additionally, it could help individual citizens have better access to basic services and economic opportunities.

Becoming an Active Partner in the Global Market

The 2018-2022 Country Strategy Paper (CSP) suggests that to maintain favorable economic growth, Côte d’Ivoire should attract global investments, employ economic reforms and create more agriculture-industrial chains of supply. With support from the CSP and the World Bank, Côte d’Ivoire will receive loans to reach their economic development goals.

Côte d’Ivoire is further strengthening their economy through investments in the mining and electricity sectors, and by simplifying the start-up process and tax-paying procedure for small businesses.

Mending Gender Disparities Associated with Poverty

While gender inequalities still exist in Côte d’Ivoire, the government is working to make employment and educational opportunities more equal. More than 50% of women in Côte d’Ivoire are uneducated, and 73.7% of women are illiterate. In comparison, only 36% of men receive no education, and 46.7% of men are illiterate. To combat these disparities, funding is set aside for activities that specifically empower women. Further, more women are chosen to participate in important projects, thanks to the Affirmative Finance Action for Women in Africa (AFAWA).

With more concentrated funding in education and the job market, impoverished women can establish themselves in society and regain economic stability. According to the World Bank, it is in the country’s best interest financially to incorporate more women in the job market.

Conclusion

These innovations in poverty eradication in Côte d’Ivoire show the government’s focus on addressing this issue. It is imperative that the country continue to receive funding to incorporate itself into the international economy. By sticking to these strategies and working with world organizations, the government will hopefully be able to eradicate poverty in Côte d’Ivoire.

– Danielle Kuzel
Photo: Flickr

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Homelessness in Vietnam

homelessness in vietnamWhile the nation of Vietnam has long struggled with poverty, homelessness in Vietnam has been successfully reduced by the government during a period of five years ranging from 2003 to 2008. These efforts have reduced the number of street children by 62%. This accomplishment is partly due to the fact that Vietnam has been aggressively fighting poverty for years. Every year since 2012, the percentage of people who live in poverty has lowered by a range of 4.6% to 6.9%. This effectively cut the percentage of people living in extreme poverty since 2012 in half. This is due largely to the fact that Vietnam has been experiencing massive economic growth in the last decade. In addition, it has been shifting to a market-based economy with a socialistic orientation.

Millions Have Been Lifted Out of Poverty

The country has experienced significant improvement with regards to government openness and transparency, as well as education and human development. Inward investments and focusing on increasing exports have been one of the drivers of this prosperity as well as a focus on reducing poverty in the country. Overall, 30 million people have been lifted out of poverty since 1992. According to a report by the IMF, the government has been investing in housing, education and infrastructure for its vulnerable population, especially ethnic minorities and those who live in remote areas. All of this has contributed to the small percentages of homelessness in Vietnam.

There Are Still Some Challenges

While the numbers are improving for Vietnamese-born homeless children, the population of migrant children is on the rise. It is estimated, in 2006, that the number of these children was around 23,000. Migrant children, according to some reports, are coming from rural areas in Vietnam. They represent a new social phenomenon in Vietnamese society. Many of these children are homeless and their parents use them to generate income. Many of them don’t have identification or any personal papers and are very vulnerable to labor exploitation by those who employ them. Those children cannot attend university or go to the hospital. Sadly, homelessness in Vietnam often exposes them to other risks such as sexual abuse and even certain diseases.

Thankfully, there are those who are working on solutions to tackle homelessness in Vietnam. They are specifically tackling the problem of street children. Do Duy Vi, the Chief Outreach Officer of Blue Dragon Children Foundation, himself used to be a child of the streets. Today he works as a social worker trying to get children off the streets by guiding them to walk the same path he did. He offers them a similar opportunity that he was offered. He helps street children become outreach workers for the Australian funded foundation. During the period of July 1, 2017 to June 30, 2018, the foundation rescued 116 children off the streets and connected 62 of them with their families. It also represented 52 children in child protection cases and provided 107 human trafficking survivors with emergency accommodations. Part of the organization’s job also includes working with government authorities. As such, they helped the 694 government officials become more skilled in countering violations of child rights and trafficking. These are just some of the signs of hope for the destitute in this country.

More Needs To Be Done

It has been reported that 400 organizations and NGOs are helping 15,000 children living in extremely difficult situations. More needs to be done in terms of spreading awareness about the problem and explaining child protection laws that protect youngsters in Vietnam from being exploited for profit.

– Mustafa Ali
Photo: Flickr

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A Look at Humanitarian Progress in Benin

Progress in Benin
Despite a low unemployment rate of one percent and a GDP growth rate that increased from two percent to over five percent from 2015 to 2017, progress in Benin has been slow and it is still a poor country in West Africa. With more than a third of the over 11 million population living below the poverty line, it is difficult for Beninese to live without a feeling of unease. Three major reasons Benin has a rising poverty rate is because of over-reliance in Niger’s economy, the largest exporter, reluctance for Benin to modernize its own economy and climatic shocks, particularly massive floods.

Agricultural Productivity and Diversification Project

The agriculture sector employs over 70 percent of Beninese. In an effort to boost the economy, the Republic of Benin is investing in improvements in the agriculture sector. The Agricultural Productivity and Diversification Project began on March 22, 2011, with a budget of $61 million and ends on February 28, 2021. Its purpose is to repair major damage caused during Benin’s 2010 flood and improve productivity in certain export-oriented value chains, such as aquaculture, maize, rice, cashew and pineapple.

One component of this project is improving technology and restoration of productivity. The devastating flood in 2010 destroyed over 316,000 acres of cropland and 50,000 homes. The project began after the major flood and takes into account the need for drainage systems to stifle rising waters during floods. Small-scale irrigation infrastructure repair and improvement are issues that the project faces and hopes to correct in the timeframe. Climate-smart production systems are another investment that the country is developing to prevent widespread destruction to cropland when a natural disaster threatens to destroy homes and crops. The project is also set to create new jobs by investing in small and medium enterprises (SMEs), especially for youth and women.

Improving the Business Environment

Although flooding caused several Beninese people to lose their homes and cropland, there is one impediment that halts economic development: corruption. President Talon became the President of Benin in 2016 and stated in his inaugural address that he would “make the fight against corruption an ongoing and everyday struggle.” A 29 percent electricity access is another issue that prevents developmental progress in Benin, but since 2016 blackouts have reduced and electricity generation has improved significantly.

Economic Diversification

The last major impasse that prevents development in Benin is over-reliance in Nigeria, Benin’s major exporter. Current IMF Managing Director, Christine Lagarde, announced a call for economic diversification in Benin. Lagarde believes diversifying is one way to reduce the high poverty level of 36 percent. Due to the country’s economic reliance on the agricultural sector and economic conditions in Nigeria, it is difficult to grow if a recession, such as the 2017 recession in Nigeria, occurs. In her speech at the Chamber of Commerce in Cotonou, Benin, Lagarde discussed how Benin could strengthen land tenure, increase food security in rural areas and invest more in education and health, and improve transparency in the government so that outside investors would find investing in Benin appealing.

Rate of Progress in Benin

There is room for growth, though the poverty-stricken nation has had success in certain areas, such as the average life expectancy that rose from 50 years in 2000 to 62 in 2018. With the creation of the Agricultural Productivity and Diversification Project, improvements in agriculture and infrastructure are already underway. The estimated rate of urbanization is fairly high at 3.89 percent from 2015 to 2020. At this rate of progress in Benin and under the leadership of President Talon, the country will continue its headway in development so that the percentage of Beninese in poverty will gradually drop in the coming years.

– Lucas Schmidt
Photo: Flickr

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Credit Access in Grenada

Credit Access in Grenada
Grenada is a small, densely populated island located in the southern Caribbean. The country is often nicknamed “Spice Isle” for its legacy of exceptional spice production. In recent years, Grenada has had stable economic growth averaging more than 5 percent annually, making it one of the fastest growing economies in the region. However, its location within the hurricane belt and its heavy reliance on commodity exports make the country vulnerable to economic shocks caused by natural disasters and market fluctuations.

Financial Infrastructure

Grenada has two main bodies regulating its financial operations. The Eastern Caribbean Central Bank (ECCB) is a regional body established in 1983 in order to maintain the stability of the eastern Caribbean currency and the integrity of the banking system. The ECCB serves as Grenada’s central bank, setting the country’s monetary supplies, lending rates and enforcing regulations upon the banking sector. A second body, the Grenada Authority for the Regulation of Financial Institutions (GARFIN), was introduced in 2007 by an act of parliament for the regulation of the non-bank financial sector that includes insurance agencies, credit unions, pension schemes and other financial services.

Credit Access Constraints

In addition to having a firm regulatory system, Grenada currently has five commercial banks and 10 credit unions operating in the country that offer a range of credit options for individuals and businesses. However, with around 65 percent of the country’s population living outside of urban settings, along with unattractive interest rates and a risk-averse corporate climate, credit access in Grenada remains an obstacle to equal and sustainable development. In fact, a recent report by the World Bank ranked Grenada 130th out of 189 countries in terms of access to credit. Similarly, a 2013 report by the Caribbean Development Bank cites lack of access to credit as one of three widely recognized constraints to the development of the private sector.

Grenada Development Bank

Being aware of the lingering issues, the government established the Grenada Development Bank (GDB) in a concentrated effort to improve credit access in Grenada. Overseen by GARFIN, the development bank was created to serve five core purposes:

  • Expand the development enterprises.
  • Assist with high education costs.
  • Foster the development of capital markets.
  • Mobilize and coordinate resources for financing industrial and agricultural projects.
  • Provide loans for home construction and renovation.

The bank operates under close government oversight to ensure it is guided primarily by Grenada’s development needs. Although in existence since 1976, GDB has undergone a series of structural revisions and has recently seen significant improvements to both its profits and its lending contributions. In an interview with the OECS Business Focus magazine, GDB Managing Director, Mervyn Lord, said the role of the bank is to finance the gap in the economy, thereby providing the only financing option for a whole range of Grenadians who do not qualify for commercial or credit union loans.

For instance, GDB offers mortgages to homebuyers who can demonstrate their ability to make monthly repayments even though they do not have the available funds to pay a deposit. Lord also added that GDB tries to accommodate borrowers by reducing red tape requirements and accepting any source of capital (rather than just cash) to secure business loans.

Future of Credit Access in Grenada

While many development indicators are pointing in the right direction for Grenada, there are still steps that need to be taken to safeguard its recent growth. A 2018 IMF report commends the Grenadine authorities for strengthening the financial system but advises that GARFIN improves its data monitoring and stress-testing system. Although a sign of improved credit access in Grenada, the rapid uptick seen in credit union lending could lead to high default rates if not closely monitored and regulated.

– Jamie Wiggan

Photo: Flickr

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Zero Extreme Poverty in India by 2030?

Extreme Poverty in India
India recently fell from the top of the list in the ranking of countries living with extreme poverty. Defined as living under an income of $1.90 a day, India had remained at the top spot for many years. In 2016, India had an estimated 124 million people living in extreme poverty.

Due to longstanding economic efforts, the rate of poverty in India has fallen dramatically. Today it is estimated to be around 70 million. The numbers are still high, but the rate of reduction is nothing but optimistic. Every minute, about 44 Indians come out of poverty, which is one of the fastest rates of poverty reduction in the world. Studies indicate a staggering projection of zero percent extreme poverty by 2030.

Economic Growth in India

These projections rest solidly on The World Poverty Clock, which tracks poverty rates in real time. Its information is collected from domestic surveys and The International Monetary Fund’s data mapper, World Economic Outlook (IMF WEO). The clock’s projections suggest the gap between India and Nigeria (which now holds the most citizens living in extreme poverty) is widening. The World Poverty Clock has reported that by 2021, the forecast shows that the number of Indians living in extreme poverty will fall below 3 percent of the population.

India’s decline in poverty is correlated with its years-long economic growth. Over recent decades, the nation has implemented many economic efforts to counter economic instability. Ranil Salgado, the head of the IMF team for India has stated that a recent policy called the goods and services tax, which “created a unified national market for the first time by lowering internal barriers to trade – effectively establishing a free trade agreement for a market of 1.3 billion people.” The tax increases economic activity, creating jobs and customers. GDP has steadily grown in recent years at a rate of about 5-6 percent, but Salgado expects a rate of 7.3 percent for 2018-2019.

Necessary Steps to Reducing Poverty

In order to maintain this amount of growth and keep it healthy, India will have to monitor its growth and implement necessary policies. Nobel Peace laureate Muhammad Yunus believes India should encourage microfinance institutions “to fill up the gaps left by the conventional banks, that only cater to the rich.”

Access to finance is like economic breathing. In order to be independent and sustainable economically, individuals coming out of extreme poverty in India need the agency and independence microfinance legislation would create. If done right, Yunus is strong in his belief the U.N.’s projection of zero percent extreme poverty in India will be reached by 2030.

India is showing that this is not an impossible feat, but a very plausible one. The outlook shows that further growth is still needed, but this necessary first step is an encouraging one for the future of India.

– Yumi Wilson
Photo: Flickr

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Exploring How the Media Misrepresents India

Media Misrepresents India
India is a vast South Asian country, not only with diverse terrain stretching from the Himalayas to the Indian Ocean Coastline but also with significant socio-economic contrasts. It is understandable how the media misrepresents India because it tends to shed light only on the rural and urban poor and the struggling.

With a population of more than 1.3 billion, there are stories of unfortunate and inhuman events that occur in the country but those events don’t represent India, as a whole. India needs to be looked at through fresh lenses to dispel the following ideas.

How the Media Misrepresents India

  1. Poor India: India is a developing country with 22 percent of its population living in poverty, but only about 5 percent of the Indian population lives in slums. The International Monetary Fund confirmed that India will be the fastest-growing major economy with a growth rate of 7.4 to 7.8 percent in 2019. In terms of GDP, India is now the world’s sixth-largest economy. 
  2. Uneducated Nation: This is another example of how the media misrepresents India, as an uneducated country. India has more than 1.5 million schools with more than 260 million students. Currently, India produces about 9 million graduates and 26.5 million students enrolled in Indian higher education per year. The country is set to produce the world’s largest number of engineers. The first ever Global Report commissioned by the Queen Elizabeth Prize has revealed that 80 percent of Indians aged 16 and 17 have shown interest in engineering, compared to 30 percent in the U.S. and 20 percent in the U.K.India is also the only country after the U.S. and Japan to build a supercomputer independently. Indian Space Research Organization (ISRO) also became the first country to orbit around Mars on its first attempt at a cost of just $74 million, which is just a fraction of what other nations have spent.  
  3. Dirty and chaotic: The media overlooks the fact that the country has luxury malls and hotels too. The number of malls has increased drastically in the past few years. With no malls in 2002 to 308 malls in 2017, India has improved a lot. The Government is also taking various actions like Swachh Bharat to bring out a better and clean India.
  4. Bollywood is a Zumba class: The Indian film industry is actually the largest film industry in the world, releasing more than 1,000 films each year. In 2015, there were two thousand multiplex theaters and the following year, 2.2 billion movie tickets were sold, which makes the country the leading film market in the entire world. Indian movies are not Hindi movies alone, but a variety made in different states and in different regional languages.

These are just a few examples of how the media misrepresents India. Hopefully, in the coming years, the media will shed more light on the brighter side of the country.

– Shweta Roy
Photo: Flickr

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11 Facts About the International Monetary Fund

International Monetary Fund Facts
The International Monetary Fund (IMF), in combination with the World Bank, is the world’s largest public lender today.

Key Facts About the International Monetary Fund

 

  1. In the 1930’s the world was overtaken with financial turmoil from the Great Depression. Markets all over the world collapsed and countries closed their doors to foreign imports. The IMF was conceived in July 1944 at the United Nations Bretton Woods Conference in New Hampshire, to protect the world from a similar blow and hasten financial recovery in war-torn nations.
  2. The Fund was created to act as a credit union and watch over the values of the world’s currency, while facilitating International Trade, promote employment and sustainable growth and help to reduce global poverty. Its main aim is to maintain economic stability and help countries complete financial transactions.
  3. The three main responsibilities of the IMF are: Surveillance — specifically to monitor the economic and financial policies of its members; financial assistance through loans to its members experiencing balance of payments issues; and technical assistance to help members design and implement economic policies that foster stability and growth.
  4. Primary aims of the IMF: Promote international monetary cooperation, facilitate the expansion and balanced growth of international trade, promote exchange stability, assist in the establishment of a multilateral system of payments and make resources available to members experiencing balance of payment difficulties.
  5. The IMF is accountable to 189 member countries. Its Headquarters is located in Washington D.C.
  6. A country’s voting power is based on the size of its economy and the amount of the quota it pays when it joins the IMF. The U.S. has the largest share of votes (approximately 17 percent). Decisions require a supermajority– 85 percent of votes.
  7. The IMF advocates currency devaluation for governments of poor nations with struggling economies.
  8.  The largest borrowers of the IMF are Portugal, Greece, Ukraine, and Pakistan. The largest number of IMF loans have gone to the African Continent.
  9. The U.S. contributes about 20 percent of the total annual IMF Budget. The largest member of the IMF is the U.S. while the smallest member is Tuvalu.
  10. The fiscal year for the IMF begins on May 1 and ends on April 30.
  11. The head of the IMF staff is the Managing Director. The Managing Director also acts as Chairman of the Executive Board and serves a five-year term. The present Managing Director is Christine Lagarde of France. The Executive Board Members monitor the day to day work with the guidance of the International Monetary and Financial Committee.

Studies show that contrary to the criticism of the IMF, it fulfills its functions of promoting exchange rate stability and helping its members correct macroeconomic imbalances.

– Aishwarya Bansal

Photo: Flickr

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IMF Eases Effects of Egypt’s Economic Reforms


Egypt’s poorest and most vulnerable people are receiving special care. This is the result of the country’s fundamental economic reforms, made possible with the help of a $12 billion loan from the International Monetary Fund (IMF). Egypt’s economic reforms are creating some short-term difficulties, including high inflation, but ultimately should lead to greater growth and more jobs for the nation.

The reforms are intended to solve long-term economic challenges in Egypt. The challenges include an overvalued exchange rate, large deficits in the Egyptian budget, high unemployment, and slow growth. To address these challenges, Egypt’s government is pursuing economic reforms including a floating exchange rate, a value added tax (VAT) and a reduction of fuel subsidies.

Egypt’s economic reforms should produce long-term benefits for the country, in particular, increasing economic growth and job creation. They should also help limit inflation to single digits.

As anticipated by the government, the reforms are creating immediate challenges for Egypt’s businesses and consumers. Businesses are feeling the effects of the Egyptian pound’s devaluation as production costs have risen sharply. Consumers are being hit with a spike in short-term inflation, along with the new VAT.

Helped by the IMF loan, the government is taking steps to mitigate these short-term effects on Egypt’s poor and vulnerable populations, especially women and children. The Egyptian government has committed to spending an additional percentage point of its GDP — about 33 billion Egyptian pounds — on programs for the poor and vulnerable.

These funds will be used to increase food subsidies, provide for cash transfers to low-income families and the elderly and other targeted social programs. These additional social programs include free school meals, vocational training for youth, and support for children’s medicines and infant milk. Additionally, the government will provide gas connections in poor districts.

As the IMF points out, the government intends for Egypt’s economic reforms to benefit all the people of Egypt. The reforms will cause some short-term disruption and difficulties to them, especially the poor and vulnerable. However, the government is addressing those difficulties by strengthening the country’s social safety net so all Egyptian citizens can make the transition to a better life.

– Robert Cornet

Photo: Flickr