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3 Groups Creating Jobs in Underdeveloped Countries

3 Groups Creating Jobs in Underdeveloped CountriesPoor infrastructure and lack of job opportunities are among the top reasons that underdeveloped countries remain in poverty. Creating jobs in underdeveloped countries is key to achieving developmental goals and providing economic and political stability that can help many developing countries out of destitution. Furthermore, jobs provide income, independence and choice to individuals. It is for these reasons that creating jobs in underdeveloped countries can improve conditions and help in eliminating hunger and poverty. Creating new job opportunities can also help advance gender equality and many other pending societal issues.  In September 2015, many organizations came together to establish the U.N. 2030 Agenda for Sustainable Development, which recognized the importance and impact of jobs on these economies. Since then, corporations and organizations have been launching efforts to try and reduce global poverty by creating more jobs in developing countries.

3 Groups Creating Jobs in Underdeveloped Countries

  1. The Overseas Private Investment Corporation (OPIC): This U.S.-based finance development organization has long created jobs in underdeveloped countries that have boosted countries’ economies. OPIC has supported major infrastructure projects such as airports and hospitals, which have created many construction jobs. It also has provided and allocated financial resources to entrepreneurs in developing countries. These resources give entrepreneurs the means to start and grow their businesses, which will, in turn, produce more jobs. In 2019, OPIC merged with the Development Credit Authority, which was a part of the United States Agency for International Development (USAID), to form the Development Finance Corporation (DFC). The DFC partners with the private sector to invest in energy, healthcare and technology initiatives, as well as infrastructure and jobs.
  2. The World Bank: The international organization works to reach goals in the employment sector by launching efforts to improve financial access, provide financial training and build more robust infrastructures for lacking governments. Due to the World Bank’s international efforts, countries are recognizing the top challenges they face using job diagnostics. After evaluating data, governments can focus on more pressing socioeconomic issues. This will create jobs that benefit people in need and give them more economic stability. The World Bank counsels governments to invest in transportation, information and communications to connect more people to job markets. Finally, the World Bank is responsible for developing programs that promote entrepreneurship in small-and-medium-sized businesses.
  3. Mother’s Service Society (MSS): Founded in 1970, MSS is a social science research institute in Pondicherry, India, that leads research and conferences on subjects from global leadership to economic theory. MSS research projects and conferences develop action plans to increase employment and create jobs in developing nations. These plans detail multiple factors that, when combined, generate employment and boost the economies of these countries. According to MSS, the Newly Industrializing Economies (NIEs) in East Asia have demonstrated that more comprehensive strategies for job generation have yielded the most progress. More comprehensive strategies for job generation can include ideas such as having more of an emphasis on agriculture, promoting small businesses, improve marketing efforts, develop exports and employment planning.

More Strategies

Besides the great work of these groups, other comprehensive strategies for creating jobs in underdeveloped countries include extending basic education, improving higher education, raising productivity and upgrading the skill level of workers. By implementing these strategies, economies can close socioeconomic gaps, join the global market and create more job opportunities.

– Annamarie Perez
Photo: Flickr 

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Agricultural Sustainability in the DRC

Agricultural Sustainability in the DRCDespite the Democratic Republic of the Congo harboring the second-largest cultivable land in the world at 80 million hectares, food insecurity and malnutrition are pressing issues in a country that ranks among the poorest in the world. The Integrated Food Security Phase Classification (IPC) characterizes almost 22 million of the 89.5 million residents as severely food insecure, despite 70% of the employed population working in the agricultural industry. Lack of infrastructure combined with prolonged national armed conflict has led to only 10 million hectares currently under cultivation, leaving enormous potential for agricultural and economic growth. Agricultural sustainability in the DRC is crucial to address food insecurity and poverty.

The Joint WFP-FAO Resilience Program in DRC

A combined effort from the Food and Agriculture Organization (FAO) and the World Food Programme (WFP) focuses on the optimization of agriculture production as well as market revisions and improvements to reduce food insecurity and bolster a declining national economy. Improving agricultural sustainability in the DRC could prove effective in stabilizing a region with enormous agricultural potential.

The Need for Agricultural Sustainability

Providing direct financial relief to the DRC has proven both necessary and effective, especially in the wake of nationwide flooding in 2019 and 2020 on top of widespread armed conflict and displacement. Since 2018, USAID reports that the DRC has received roughly $570 million worth of direct food relief. However, direct relief does not equal sustainability and is a relatively short-term solution. The joint program from the WFP and FAO implements successful strategies to provide much-needed agricultural sustainability in the DRC and creates an important foundation for further improvements.

The Benefits of Cooperation

Promoting organizational cooperation and improving managerial structure has allowed for combined agricultural improvements nationwide. Since 2017, this project has reached 30,000 small farm households and stimulated cooperation that has improved organizational structure and operational capacities. This cooperation has allowed for the distribution of newer agricultural technologies and concepts such as improved seeds and more advanced tools to optimize production.

Increased cooperation has also helped eliminate local conflicts between farmers and has increased the total area of land being cultivated. The program has also provided 7,000 local women with functional literacy education, allowing for more female community engagement as well as involvement in managerial duties in farming communities.

Addressing Nutrition in the DRC

At a local level, the joint program has implemented enhanced nutritional programs to utilize the increasing resources. Increased cooperation and education have allowed for the growth of crops with enhanced nutritional value. To promote long-term sustainability, in 2020, the project utilized direct aid to establish 300 vegetable gardens, reaching 13,510 residents. The program also held 150 culinary demonstrations regarding optimal cooking techniques that are both affordable and nutritious.

Developing the DRC’s Infrastructure

Large agricultural areas such as the DRC rely heavily on infrastructure for transportation and storage of goods. The joint program has fixed 193 kilometers of agricultural roads since implementation in 2017, with 65% of the road rehabilitators being women.

Not only has the program enhanced transportation capabilities but it has also constructed 20 different storage buildings as well as 75 community granaries, allowing for the long-term storage of agricultural products. This enhanced storage capacity reduces waste from spoilage and allows product to be sold during favorable selling seasons, allowing for advanced agricultural sustainability in the DRC.

The Joint WFP-FAO resilience program in the DRC has made significant accomplishments in the country. With further efforts, agricultural sustainability in the DRC can be further developed to improve poverty in the region.

– Jackson Thennis
Photo: Flickr

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5 Innovative Ukrainian Inventions

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

5 High-Tech Ukrainian Inventions

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

Ukrainian Inventions: Potential for the Economy

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

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

How Supportive Infrastructure Will Improve the Economy

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

Transforming Ukraine: Inventions and Infrastructure

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

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

– Julia Ditmar
Photo: Flickr

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Initiative Underway to Aid Poverty in Mozambique

Aid Poverty in MozambiqueThe country of Mozambique, located in southern Africa, has 46.1% of its population living below the poverty line. Children living in rural areas are among the most impacted as poverty in Mozambique hits rural areas the hardest. Economic growth has occurred in the country over the last decade but rural poverty persists due to meager transport infrastructure ultimately segregating rural regions. However, a new initiative is underway to help aid poverty in Mozambique.

The Integrated Feeder Roads Project

Funded by the World Bank, the Integrated Feeder Roads Project is an ongoing initiative that is enhancing road access in selected rural regions of Mozambique to support the well-being of local communities. For Mozambique and its segregated rural regions, added transport infrastructure that the Integrated Feeder Roads Project provides will connect these poverty-stricken rural regions to greater Mozambique. As a result, poverty in Mozambique is set to improve through imports, exports and overall improved levels of accessibility to and from rural regions.

Cyclones Strike

In 2019, the powerful Cyclone Idai and Cyclone Kenneth ravaged their way through the Southern Hemisphere and Mozambique was one of many countries deeply affected. Cyclone Idai was deemed to be one of the worst natural disasters to ever hit southern Africa over the last 20 years. Only six weeks later, Cyclone Kenneth hit Mozambique, marking the first time that two strong tropical cyclones struck the country in the same season. The aftermath of both cyclones was devastating, and in the destruction, the already minimal roads connecting rural regions were further damaged and relief efforts from humanitarians became nearly impossible. Poverty in Mozambique worsened after these cyclones and so did the transportive means of aiding it.

The World Bank Helps Aid Poverty in Mozambique

The Integrated Feeder Roads Project was initially approved by the World Bank in 2018 as Mozambique’s transport infrastructure has long been insufficient to sustain steady economies in rural areas and support local communities. Following the cyclones and the damage they left behind, the World Bank approved an IDA grant of $110 million to further aid reconstruction efforts given the severe aftermath of Idai and Kenneth. Overall, the World Bank is financing the Integrated Feeder Roads Project with an estimated total of $185 million.

COVID-19 in Mozambique

As if Mozambique had not endured enough, COVID-19 has been yet another unfortunate obstacle thrown at the country in its rebuilding process after the cyclones. Negatively impacting poverty, Mozambique’s economy has further declined as a result of COVID-19 due to travel restrictions and precautions affecting the flow of goods and services. Transport infrastructure built from the Integrated Feeder Roads Project will aid relief efforts and boost the economy even though COVID-19 is impacting poverty relief efforts.

The Future of Mozambique

In the face of much adversity, the Integrated Feeder Roads Project offers plenty of hope for poverty relief success in Mozambique. Added transport infrastructure will connect rural regions to greater Mozambique, and in a time of heavy need, these opened connections will help rural communities and affected individuals who desperately need it. Overall, foreign aid will help aid poverty in Mozambique.

– Dylan James
Photo: Flickr

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Sweden’s Foreign Aid

Sweden's Foreign AidMany countries allocate a portion of their gross national income (GNI) to foreign aid. However, few countries rival Sweden’s foreign aid. Sweden has a reputation as a generous country in the international community; it gives generous donations to struggling countries for a variety of reasons. The three nations that Sweden provides the most aid to are Tanzania, Afghanistan and Mozambique. Additionally, Sweden distributes its aid to many areas within these three countries. This article highlights Sweden’s efforts to help these impoverished countries.

Tanzania

Tanzania and Sweden have been partners for over half a century. The relationship between the two nations started back in 1963. Since then, Sweden has achieved multiple substantial successes in Tanzania. For example, Sweden has helped deliver electricity to about 20% of the newly powered areas since 2006. Sweden also provided financial assistance to one million small businesses. In this case, over 50% of those beneficiaries were women or young people. Additionally, in 2013, Sweden provided Tanzania with $123 million in official development assistance (ODA). It also provided $103 million in 2015.

According to the website Sweden Abroad, Sweden’s foreign aid in Tanzania is intended to help the country achieve sustainable growth and to give impoverished people opportunities to care for themselves, either by providing them with employment or by starting small businesses. Looking to the future, Sweden will decrease their aid as poverty decreases in Tanzania.

Afghanistan

Afghanistan has also received a tremendous amount of support from Sweden’s foreign aid. One of the core focuses of Swedish aid in Afghanistan is in promoting gender equality for women. Unfortunately, literacy among women in Afghanistan is around 18%. Sweden has worked hard to reduce that statistic. Thankfully, Sweden has increased the number of women attending school. In 2001, one million women attended school in Afghanistan. By 2016, there were 8.2 million children in school, 40% of whom were girls. Sweden has increased the number of girls in school, in part, through the implementation of schools run by the Swedish Committee for Afghanistan. Currently, these schools teach about 70,000 Afghan children. Of that number, 62% are girls.

Sweden has also made strides in protecting women from violence. The Swedish International Development Cooperation Agency, U.N. Women and Women for Afghanistan Women have teamed up to ensure the protection of Afghan women. These agencies have established refuges within 20 provinces of Afghanistan. These refuges offer services including legal assistance and guidance following gender-based violence.

Mozambique

Similar to Tanzania, Mozambique has received Sweden’s foreign aid for many years; Swedish aid to Tanzania started during the 1970s. Sweden has aided Mozambique in many ways, including by preventing child marriages, promoting gender equality and renovating hydroelectric plants. The Pungwe Programme is one specific example of Sweden’s aid in Mozambique. This program takes care of the Pungwe River. Over one million people use the Pungwe River, including Mozambicans in addition to some Zimbabweans.

Hopefully, other countries will follow Sweden’s example and increase their investments in the global community. Sweden’s work in Tanzania, Afghanistan and Mozambique is commendable; however, it will take more aid to bring developing countries into the modern era.

– Jacob E. Lee
Photo: Flickr

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Ongoing Flooding in Libya Requires Aid

Flooding in LibyaLibya has been a regular victim of severe flooding for many decades and the problem is only becoming more severe. Heavy rains have caused significant problems, with flooding and landslides in urban and rural areas making day-to-day life infeasible for thousands.

Flooding in Al-Bayda, Libya

On November 6 2020, Al-Bayda, Libya, experienced torrential rains and extreme flooding, resulting in the displacement of thousands. High water levels on public roads have made daily commutes impossible for many. Additionally, the floods have left thousands without electricity and have greatly damaged properties.

The flooding of 2020 is reminiscent of the flooding in the Ghat district in 2019, which affected 20,000 people and displaced 4,500. In June of 2019, flooding devastated areas in south Libya and damaged roads and farmland.  Central infrastructure suffered unrecoverable damages, setting the region back. Areas prone to disaster are significantly limited in their progression and development when devastation is so frequent.

Flooding and Poverty

The pattern of flooding in Libya has consistently contributed to problems of economic decline, poor infrastructure and poverty. As one of the most common natural disasters, flooding impacts impoverished areas more severely because their infrastructure is not built to withstand floods or landslides.

Poor countries take a long time to recover from the impact of flooding because they do not have the resources and money to repair property damage and help people to bounce back from the effects. War-affected countries are even more vulnerable and Libya is such a country affected by war and conflict.

Within the country, a two-day holiday was declared on November 9 and 10 of 2020 due to the extreme flooding and $7 million has been allocated to address damages in Al-Bayda municipality.  Since the flooding, there has been little recognition and support from the international community.

Humanitarian Aid

A humanitarian aid team from the European Civil Protection and Humanitarian Aid Operation (ECHO) assembled to provide aid to support the city of Al-Bayda and other cities vulnerable to flooding in Libya. The team worked to gather information and identify what resources are most needed to help families get back on their feet and be better prepared for future severe flooding and weather. Cleanup efforts are ongoing and teams started using satellite imaging and other data-collecting resources to help assess and plan for resource distribution.

The Need for Foreign Aid in Libya

In response to Libya’s chronic vulnerability to severe flooding, in 2019, the U.S. Government provided nearly $31.3 million to address the humanitarian needs of conflict-affected populations throughout Libya. Since the floods are ongoing, ongoing assistance is needed. Proactive and preventative measures need to be implemented in response to the devastating pattern of flooding in Libya. These are expensive investments, however, and Libya cannot implement these preventative measures alone. Help from the international community is crucial in order to create a more resilient country.

– Allyson Reeder
Photo: Flickr

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Successful Strategies Addressing Poverty in Bhutan

Poverty in BhutanBhutan is a small country tucked away in the mountainous terrain of the Himalayas. Known as the Kingdom of Happiness, Bhutan is notable for creating its Gross National Happiness Index. This index serves as a tool for the Government of Bhutan to outline what must be done in order to foster and maintain a holistically sustainable environment. To uphold this index, Bhutan has made it a priority to reduce poverty in Bhutan and better the quality of life for the population.

Poverty in Bhutan

Poverty in Bhutan stems largely from issues with the country’s terrain. The Himalayas, while beautiful, are also difficult to cultivate, traverse and control. Farmers struggle to grow enough crops to maintain a stable income due to the limited access to farmable land. What workable land there is, often rests at the whims of various natural disasters. The lack of education and diverse job opportunities also have made it difficult for many to rise out of their economic situation without help and intervention.

Over the last 10 years, the government has made impressive strides to address poverty in Bhutan. Between 2007 and 2012, poverty dropped from 23% down to 12%. In 2017, Bhutan announced that it had once again cut its poverty rate by half over five years, dropping the number down to 5.8%.

Strategies and Improvements

The value of land productivity has been rising and thus, farming has become a more profitable and sustainable industry. Bhutan cultivates less than 3% of its land but the country has shifted to producing high-value commercial crops. These crops sell for a high price with countries such as India and Bangladesh, making up for the lack of farmable land. Trade agreements have stimulated the value of agricultural exports, increasing the international cash flow into Bhutan’s own economy.

Infrastructure and road production have become vital players in the reduction of poverty in Bhutan. The Government of Bhutan set out to update existing paths, develop new highways and ensure that no town is more than a half-day walk from the closest road. High-quality roads allow for traffic both through and out of rural areas. This increased traffic to urban areas provides easier access to jobs, education and other opportunities for those who previously struggled with inaccessibility.

Hydroelectric projects also play a sizeable role in Bhutan’s efforts to fight poverty. These projects have not only stimulated job growth within rural communities but have also brought in many foreign workers. The presence of these workers increases local spending, benefitting rural communities with income.

Looking Forward

Over the last decade, the rate of poverty in Bhutan has fallen to new lows. While there are still many in the country that struggle with poor living conditions, the government is working to ensure that they too will benefit from the economic changes that Bhutan is trying to normalize. The Gross National Happiness Index accounts for all the people of the country and thus, Bhutan will continue to work at helping its people until all are holistically happy.

– Nicolette Schneiderman
Photo: Flickr

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The Tony Elumelu Foundation: Fostering Entrepreneurship in Africa

Entrepreneurship in Africa
Africa stands as a continent of nearly 1.3 billion people, with 27 nations having a poverty rate of over 30%. As COVID-19 spreads through the region, falling demand and break down of supply chains threaten to further slow already-sluggish growth rates. Ever the land of great resilience and innovation, hundreds of enterprising individuals have excelled in Africa, enriching themselves and their countries. Increasingly more Africans are seeking out entrepreneurial and small business opportunities to combat poverty. One such businessman helping in this effort, multimillionaire Tony Elumelu, is using his wealth to fuel entrepreneurship in Africa and transform the continent into a booming commercial hub and providing hope for the future.

Roadblocks to Economic Growth in Africa

Africa’s economy has long suffered stubborn development setbacks. Government inaction, fragile infrastructure and widespread instability have hindered the region’s industrialization and economic growth. Many countries grapple with deficient infrastructure, including inadequate means of transportation, limited access to electricity and water and poor telecommunications systems. The World Bank estimates that the resolution of these structural shortcomings would increase the region’s productivity by as much as 40%.

Politicians have been reluctant to bolster manufacturing despite an international consensus on Africa’s need for industrialization. Such apprehension can be partially attributed to Africa’s unique position in the world economy: a pre-industrial continent already aspiring to post-industrialism. This misguided ambition has discouraged lawmakers from implementing protectionist policies. Without tariffs that benefit domestic manufacturing industries, larger international corporations choke out Africa’s budding factories and discourage entrepreneurship in Africa.

Ongoing fiscal and political instability serves to magnify these already difficult issues. Mounting debt levels divert money from investment to reimbursement and waste significant capital on unproductive endeavors. For example, sub-Saharan Africa’s aggregate debt-to-GDP ratio doubled from 2008 to 2017. Additionally, frequent leadership turnover has deterred international companies from entering African countries.

Working to mitigate these hurdles is Tony Elumelu, the founder of Heirs Holdings Ltd, a private investment corporation that operates in the energy sector. Beyond oil and gas, Elumelu is investing in a far more valuable asset: Africa’s future innovators. His nonprofit organization, the Tony Elumelu Foundation (TEF), empowers young entrepreneurs with the resources they need to build meaningful businesses.

How The Tony Elumelu Foundation Advances Entrepreneurship in Africa

The Tony Elumelu Foundation fosters entrepreneurship in Africa to alleviate poverty and spark economic gains. The TEF Entrepreneurship Programme offers grants and mentorship to innovative African businesspeople, allowing them to transform their ideas into profitable corporations. Endowed with a generous $100 million, the program has already assisted 9,000 individuals in creating businesses that invigorate their entire communities.

The broad scope of TEF’s investments cultivates economic diversification, a key tenet of development and stability. Some of the organization’s recent beneficiaries include:

  • Stars From All Nations (SFAN): Headed by Tom-Chris Emewulu, SFAN nourishes young minds through informative programs and workshops. Aimed at augmenting and supplementing children’s schooling, the company is helping to resolve Africa’s undereducation crisis.
  • Doctoora: Jubril Odulana, a Nigerian doctor, created Doctoora as a solution to Africa’s limited healthcare access. The platform collaborates with medical professionals to open private practices and ensures patients receive the care they need. In the face of COVID-19, Doctoora plays an essential role in promoting public health across the region.
  • Ufinix.com: The brainchild of Nnodim Uchenna, Ufinix.com offers aspiring developers comprehensive coding courses and guidance, preparing them for future careers in computer science. By equipping students with technological knowledge, the website is propelling Africa into the digital age.
  • Light Salone: Light Salone founder Mohammed Akamara aims to redress Sierra Leone’s severe energy shortage. In pursuit of this goal, Akamara engineered affordable hybrid solar-wind power sources to electrify rural areas and boost development. Manufactured using recycled supplies, these Sowind Technologies provide a mindful solution to Sierra Leone’s electrical desert.

By supporting young visionaries, the Tony Elumelu Foundation is generating hope, ambition and entrepreneurship in Africa. Its passionate beneficiaries are launching innovative and impactful companies that not only empower their creators but also their communities. The foundation has employed the continent’s most creative, altruistic minds, initiating a cycle of philanthropy that portends Africa’s future prosperity.

– Rosalind Coats
Photo: Flickr

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Understanding How the U.S. Benefits from Foreign Aid to Djibouti

U.S. benefits from foreign aid to DjiboutiA tiny, desert-like East African nation, Djibouti is more synonymous with counter-terrorism and the piracy concerns of its southern neighbor than economic ties to the U.S. However, substantial U.S. foreign aid is indirectly creating opportunities for U.S. exporters. Additionally, the U.S. benefits from foreign aid to Djibouti by securing efficient and reliable trade routes to other nearby African countries such as Ethiopia, in which the U.S. has key commercial interests.

Home to roughly 875,000 people, as well as a significant U.S., German, Japanese, French and most recently Chinese military presence, Djibouti has a decidedly disproportionate amount of foreign military within its borders. The U.S. pays $60 million each year to Djibouti for the rights to maintain its only permanent sub-Saharan military base.

But, U.S. foreign aid coming into the country is equally important in Djibouti for the majority of citizens looking for work. Although U.S. investment in the country pales in contrast to that of new entrants into the region such as China, the actual workforce of Djibouti is benefiting from the more nuanced and domestically-oriented U.S. foreign aid.

New ventures in the construction of ports, pipelines, international airports and railways have somewhat failed to raise the standard of living and stimulate employment. Accounting for 70 percent of GDP, the new port projects have only added a few thousand jobs. According to the U.N., despite recent Chinese soft loans toward these various infrastructure projects, the unemployment rate in Djibouti still stands at 60 percent.

This high level of unemployment is partly due to a lack of qualified candidates in many sectors of the economy. Workers looking for jobs simply do not have the necessary skills required to fill many of the possible vacancies.

Through the Workforce Development Project (WDP), the United States Agency for International Development and Djibouti are working together to reduce unemployment and create a more modern labor force. Investments of nearly $25 million over five years (2016-2021) are aimed at increasing competitiveness by tailoring the workforce to the needs of a modern economy.

The WDP emphasizes creating stronger connections between worker training programs and employers. Specifically, through more meaningful ties between vocational education centers and businesses, the future workforce will be better suited for the demands of firms and will likely have greater hiring potential.

Although not as flashy as the new Doraleh Port or the new electrified railroad connecting Djibouti City and Ethiopia’s capital, Addis Ababa, the WDP will create thousands of new consumers to U.S. exports. This is especially promising since the soaring unemployment rate allows for ample economic improvements should this transformation of the workforce take place. USAID, centered on workforce assimilation, is therefore fostering job growth that will be more sustainable than temporary employment based on glitzy infrastructure projects.

Another way in which the U.S. benefits from foreign aid to Djibouti is by promoting ongoing access to the substantial trade flows emanating from regional neighbors. A prime example of this is Ethiopia. Much of Ethiopia’s exports—including coffee, vegetables and cosmetics—are routed through Djibouti on their way to the U.S. Meanwhile, as of 2016, 90 percent of all Ethiopian imports were brought via ports in Djibouti.

U.S. foreign aid indirectly contributes to these regional trade routes of East Africa by creating a more prosperous and modernized workforce in Djibouti. A thriving, educated and healthy Djibouti society will undoubtedly increase the opportunities for cross-border trade.

One byproduct of this increasingly interconnected region around Djibouti would be more timely and reliable shipment of goods and lower associated transportation costs. As in Ethiopia, the U.S. benefits from foreign aid to Djibouti are amplified when stability across the wider East African region is maintained.

On this last issue, there is little doubt that the military presence plays a prominent role. However, U.S. programs aiming to reduce unemployment such as the WDP, by indirectly promoting a more sustainable domestic environment in Djibouti, also contribute to regional stability. Garnering less attention than the massive infrastructure spending, transforming the country one worker at a time will lead to continued U.S. benefits from foreign aid to Djibouti

– Nathan Ghelli

Photo: Flickr

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Poverty in Tibet is Currently a Geopolitical Conundrum

poverty in Tibet

Despite political tensions, Tibet has seen marked improvements in everyday life for its average citizens. The central government in Beijing and other nations may have ulterior motives behind their funding, but the result is the same: a more prosperous Tibet. Aid is flowing in from the Chinese government, the United Nations Development Project (UNDP) and Nepal, to name a few.

According to the regional authority, over the course of the past five years, over 530,000 people have escaped poverty in Tibet. It comes as no surprise that with a falling poverty rate, there is a rise in registered capital. Currently, the number stands at over $162 billion, a 39.4 percent increase from the previous year.

Tibetan Politics: A Delicate Situation

Tibet and China have been in a tense struggle over Tibet’s autonomy since the 1950s. Many Tibetans wish for independence, and in the past, the Chinese government has acted forcefully.

The most notable example of this is the situation with the current Dalai Lama who has been living in exile in India since the Tibetan Rebellion. Despite the Dalai Lama’s tension with Beijing, it seems even he believes that remaining with China is in Tibet’s best interest. Couple that with the many development projects China has enacted in Tibet, and it appears that their relationship is looking up.

China Tries to Tackle Poverty in Tibet

The government in Beijing gives the impression that its best path to quieting Tibetan independence talks is to tackle the region’s poverty problem. One such project that China has funded is in Amdo County, where once-nomadic herders who lived in adobe huts are now receiving homes paid for by the government with a market rate of approximately $47,000.

The Shopko family, one of the recipients of these homes, have gone on the record to express their heartfelt thanks for their new home. Their old hut sat at 16,000 feet with no heating or roads to connect them to the nearby villages.

To help with the move, the Chinese government is giving migrants jobs at local tourism centers, hotels and car washes. It follows up on this guarantee with monthly bonuses for locals who manage and protect the essential grasslands, as well as 5,000 yuan a year to residents who enroll in university.

While the Shopkos serve as an ideal for how the government attempts to tackle poverty in Tibet, the program has only reached 121 families so far, but in the previous five years, the government has spent more than $9 billion to try to alleviate poverty in Tibet. Seemingly, Beijing is looking for answers to its political issues.

Foreign Aid to Tibet

Foreign countries are investing in Tibet as well. The Nepalese government has been distancing itself from its neighbor, India, in favor of China. This political posturing could be for a host of reasons; however, the projects Nepal is planning in Tibet are apolitical for the Tibetan people.

Gobinda Karkee is a Nepalese diplomat who oversees development projects with China. The most famous of these is the Friendship Bridge, which was renovated in 2016. The plans are not all symbolic, though. By 2020, Nepal plans on finishing a rail network that will connect with Tibet and lessen its reliance on using Indian ports. The $226 million project is jointly funded by Nepal and China. Along this rail line will be multiple trading points and border checks. The two nations hope the plan will boost the local economy and help rebuild much of the infrastructure that was destroyed in the 2015 earthquake.

Poverty in Tibet has often gone unnoticed in the media because when the region is in the news, it is being celebrated for its rich culture and history. The UNDP sought to take advantage of this by building tourism infrastructure in rural areas, which in turn provides higher paying jobs for the impoverished people in the Tibetan Steppe.

Much like the Chinese government’s program, UNDP has put a heavy focus on preserving the local ecology and economy. The bulk of the project focuses on Old Lhasa City. The city is famous for its courtyards, which UNDP is mapping, landscaping and organizing the foundation of to make Lhasa a tourist destination. Old Lhasa has become an exemplary case of the economic and cultural benefits of the UNDP program.

Tibet rests in a political hotbed in South Asia, and the effects of the decisions made by its neighbors can have unintended consequences on the proud region. Throughout the religious and diplomatic dilemmas, poverty in Tibet has long been a debilitating issue. Thanks to organizations like the UNDP, this problem is now being dealt with and has already improved the lives of half a million people.

– David Jaques

Photo: Flickr

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