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5 Areas Developing Countries Lead the WorldUpon initial inspection, developing countries face many obvious challenges, some of which obscure the progress being made. The realities of poverty can sometimes force this progress; after all, from the bottom, there’s only one way to go: up. Developing countries lead the world now in ways unforeseen perhaps a decade ago, and in some ways have even distinguished themselves on the global stage. Five areas serve to highlight where these countries are outperforming the developed world.

5 Areas in Which Developing Countries Lead the World

  1. Renewable and Sustainable Energy
    On the rocky fringes of a global landscape, developing countries lead the world down some of the most implausible of paths. One such pathway grows greener than others. According to World Bank, an international financial institution that finances capital projects in countries throughout the world, Mexico, China, India and Brazil are among the leaders in sustainable energy policies.In Scoring 111 countries on policies that support energy access, World Bank analytics called Regulatory Indicators for Sustainable Energy (RISE) took into account each country’s energy access, efficiency, and policies. Vietnam, South Africa, Kenya, Uganda and Tanzania also received praise for their efforts.Perhaps one reason for this trend could be the falling costs of solar energy, allowing for developing countries to reach their most isolated residents. Whatever the reason, developing economies invested in renewable energy to the tune of $177 billion in 2017. That’s a 20 percent leap in one year.
  2. Election Technology
    In places like Nigeria, electronic voter identification takes precedence over traditional work, while elsewhere, in developed countries like the U.K., the digital jump still hasn’t been made.While the electronic “fixing” of an election may be possible, the likelihood of it working in a persuasive manner depends largely on the closeness of an election. And while elections in places like Kenya meet opposition and challenge, Africa still finds itself ahead in the popular vote, so to speak, when it comes to digital voting technology.
  1. Mobile Money
    Developing countries lead the way in the implementation and use of mobile money technologies as well. Remarkably, Kenya has hit the decade mark with its M-Pesa mobile money service, but it is not alone in this growing trend among developing nations.In a 2017 report by Groupe Spéciale Mobile Association (GSMA), an organization that represents the interests of mobile operators the world over, 277 million registered mobile money accounts dotted sub-Saharan Africa at the end of 2016. These services generated $110 billion of economic value and helped to support more than three million jobs.
  2. e-Commerce and Trade
    Commercial transactions conducted electronically online, referred to as e-commerce, might often be associated with advanced economies. However, developing countries also lead the way in this area, in nations like Columbia, Argentina and Nigeria.In fact, in Latin America alone, e-commerce is expected to see growth of nearly 20 percent over the next five years. What does this mean for a developing economy? It means growth opportunities and greater integration within the world’s markets.In terms of countries opening themselves up to trade, Singapore, Indonesia and the Philippines take center stage. According to the World Economic Forum, an organization that engages world leaders to shape agendas, these countries have now displaced the traditional powerhouses.
  3. Positivity
    A recent poll by Gallup International, a leader in economic and market research, shows that the external powers of money may not necessarily translate to intrinsic happiness. The poll found that optimism came from places like Nigeria, Vietnam, Indonesia, Bangladesh and the Philippines.When asked questions about prospects for the future or personal happiness, confidence abounded in places like Mexico, despite grim financial outlooks for the country. Maybe money can’t buy happiness.

Despite lingering stereotypes and growing pessimism in our world, developing countries lead the world in several different areas, and while the change in perception may be gradual, reality dictates a much quicker realization: developing countries make strides every day, and in some cases, set the standard.

– Daniel Staesser
Photo: Flickr

Economist End of Poverty

The June 1st issue of The Economist has the compelling title “Towards the End of Poverty”. The feature article on the topic considers the landscape of future poverty reduction. Poverty has been reduced by 50% in the last twenty years but much work remains. There are still 1.1 billion people that live on less than $1.25 a day. What can the last 20 years of success be attributed to? The Economist argues that capitalism and free trade have been integral to poverty reduction.

In the 1990s economic growth soared in developing countries from an average of 4.3% annually to 6% annually. China has been one of the most notable successes, reducing extreme poverty from 84% to 10% while economic growth has continued to accelerate rapidly. As China’s growth slows, it may be difficult for poverty to decline at the same rate as in previous decades. It is also a continuing challenge to raise people above the $1.25 a day line as policies reach for increasingly poverty-stricken communities that are further from the line.

The Economist is very optimistic that the goal of halving poverty again can be achieved. Despite challenges in keeping up the same pace the article argues that the world already knows what to do – it just remains to keep up the good work. They advocate continued trust in marketization and liberalization as the best processes to aid poverty reduction. It is also important to implement policies that reduce inequality and discontinue policies that emphasize inequality. Nothing reduces poverty like free trade.

– Zoë Meroney

Source: The Economist
Photo: The Economist