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Yemen's humanitarian crisisCaught in a civil war rife with ongoing violence costing thousands of lives, Yemen is currently the most impoverished country in the Middle East and is experiencing a severe humanitarian crisis. Yemen’s humanitarian crisis is a matter of urgency as roughly 24 million Yemenis depend on foreign aid for survival.

Houthis Terrorist Designation

On January 10, 2021, U.S. Secretary of State Mike Pompeo announced that Yemen’s Houthis group would be designated as a foreign terrorist organization by the State Department. The designation went into effect on January 19, 2021, only a day before the new presidential administration would see Pompeo exit his position. This decision has drawn international concerns and criticisms as it is feared that the label would pose major challenges to U.S.-Yemen relations.

As foreign aid must go through the Houthis in order to be allocated to the people of Yemen, this act would further complicate the distribution of essential aid from the U.S. and exacerbate the humanitarian crisis in Yemen. Meanwhile, it has equally evoked a necessity to put the spotlight back on Yemen’s dire state of relentless and unforgiving civil war.

Conflict and Corruption in Yemen

Since North and South Yemen unified in 1990 to form the present state of Yemen, the country has struggled with internal unity due to the inherent religious and cultural divide among citizens. However, these differences became increasingly visible in 2014, when Yemen experienced a period of unrest throughout its population after Yemen’s president, Abdrabbuh Mansur Hadi, lifted fuel subsidies, threatening an aggravated state of poverty and food insecurity throughout the nation.

Frustrated with the pervasive corruption within the administration, widespread protests would encourage the Houthi rebels to consolidate power and take over Yemen’s Government the same year. In an effort to regain control over the region, Saudi Arabia utilized military intervention to overthrow the Houthis with the aid of foreign powers such as France, the United States and the United Kingdom. However, this conflict only set the stage for the calamity to come.

Since the Houthi takeover and the Saudi-led intervention, the humanitarian crisis in Yemen has seen more than 200,000 fatalities recorded as a result of direct and indirect effects of the country’s civil war.

Signs of Promise

While the designation of the Houthis as a terrorist organization throws a wrench into the already complex relationship dynamic between the United States and Yemen, there are three signs of promise:

  • Following Pompeo’s announcement, the United States exempted organizations such as the Red Cross and the United Nations to continue essential aid to Yemen and allowed for exports of agricultural commodities and medicine.
  • On January 25, 2021, the United States approved a month-long exemption that would allow transactions to take place between the U.S and the Houthis.
  • The new secretary of state, under the Biden Administration, Antony Blinken, has pledged to review the terrorist designation of the Houthis — a reassuring statement for the stability of aid to Yemen’s people.

Despite this setback, the designation has nevertheless raised an opportunity to bring our attention back to Yemen’s tumultuous state. Revitalized efforts of diplomacy may inspire more substantial action in order to address Yemen’s growing humanitarian crisis.

Alessandra Parker
Photo: Flickr

accessibility in IndiaAs of 2020, 50% of people in India had access to the internet, a figure growing most quickly in rural regions. In 2019, there were 264 million internet users in rural India compared to the 310 million internet users in urban India. The rapid growth of internet adoption outside of Indian cities can be accredited in part to the initiatives of the Digital India campaign, including efforts to integrate the country’s cloud infrastructure, promote open data platforms, fill connectivity gaps and offer affordable data plans. Overall, internet penetration rates across the country have more than doubled over the last five years. Through the use of technology and the internet, platforms have been created to increase resource, service and opportunity accessibility in India.

The Digital Revolution Increases Accessibility

In a country where 80% of the impoverished live in rural areas, widespread internet availability is vital. More than just a source of entertainment, the internet increases accessibility of products and services that otherwise might not be affordable or available. Recognizing the potential for digital technologies to cut across geographic and economic barriers, numerous private and public organizations have developed platforms designed to increase accessibility in India. Whether connecting buyers to faraway sellers or simply helping individuals locate public toilets, these innovative tech platforms champion access and promote inclusion in India.

Google Toilet Locator

In 2012, more Indian households had a cellphone than a toilet. A lack of access to toilets leads to rampant open defecation with consequences ranging from water pollution to the spread of infectious diseases such as cholera. In a country where technology has grown faster than public services, the government turned to tech for assistance in its campaign to eradicate open defecation and improve waste management. In December 2016, India’s Ministry of Urban Development (MoUD) partnered with Google to introduce a Google Maps toilet finder tool as part of the Swachh Bharat (Clean India) Mission. As the government works to construct millions of toilets around the country, the Google Toilet Locator helps Indians to more easily find them. The app even allows users to leave ratings and reviews for public restrooms.

Tractors-as-a-Service

In September 2018, Aeris Communications partnered with Hello Tractor to launch “Tractors-as-a-Service” in India, The service provides on-demand tractor rentals to Indian farmers. In India, agriculture is an essential source of export earnings, employment and food. Tractors play a crucial role in increasing agricultural productivity but less than 30% of farmers utilize such expensive, high-capacity equipment. Hello Tractor’s software, which can be accessed through mobile and web applications, offers a “pay-as-you-use” model based on time in the field and area covered. The app enables small farmers to reap the benefits of commercial model tractors at lower costs while increasing the profits of tractor owners by allowing them to rent out their machines during idle times.

IndiaMART

IndiaMART is India’s largest online business-to-business marketplace, connecting buyers with suppliers of products and services ranging from pharmaceuticals to industrial machinery to wholesale foods. IndiaMART offers more than 67 million products and services to more than 100 million buyers. Importantly, the platform gives small and medium-sized enterprises in India a place to promote their business. There are about 60 million small and medium-sized businesses in India but only around 10 million of them have any web presence, according to the most recent data. IndiaMART allows these companies to expand their market reach and sell through the platform for a subscription fee.

A thriving e-commerce economy allows for goods and services to reach a consumer base that is less affluent and lives outside of traditional urban markets, thereby increasing market accessibility and enhancing the welfare of rural and lower-income populations.

Unified Payments Interface

In the financial sector, the National Payments Corporation of India developed the Unified Payments Interface (UPI), an instant real-time payment system regulated by the Reserve Bank of India. The platform allows users to access multiple bank accounts from even the most remote locations, routing funds and making payments under one seamless application. Digital finance platforms such as UPI are crucial in promoting financial inclusion and empowering individuals with tools such as loans and savings accounts.

Both private and public digital platforms have been deployed to increase accessibility in India and reach those who may otherwise be excluded from resources, services and opportunities.

Margot Seidel
Photo: Flickr

the AfCFTATrading within the African Continental Free Trade Area (AfCFTA) finally took effect on January 1, 2021. The AfCFTA is the world’s largest trading area since the establishment of the World Trade Organization with 54 of the 55 countries of the African Union (AU). The AfCFTA was established by the African Continental Free Trade Agreement signed in March 2018 by 44 AU countries. Over time, other AU countries signed on as the official start of trading under the provisions of the agreement approached. The AfCTFA is projected to create opportunities and boost the African economy. By facilitating this intra-African trade area, the international community expects sustainable growth and increased economic development.

The Implementation and Benefits of the AfCFTA

  1. Creating a Single Market. The main objective is to create a single market for goods and services to increase trading among African nations. The AfCFTA is tasked to implement protocols to eliminate trade barriers and cooperate with member states on investment and competition policies, intellectual property rights, settlement of disputes and other trade-liberating strategies.
  1. Expected Economic Boost and Trade Diversity. UNECA estimates that AfCFTA will boost intra-African trade by 52.3% once import duties and non-tariff barriers are eliminated. The AfCFTA will cover a GDP of $2.5 trillion of the market. The trade initiative will also diversify intra-African trade as it would encourage more industrial goods as opposed to extractive goods and natural resources. Historically, more than 75% of African exports outside of the continent consisted of extractive commodities whereas only 40% of intra-African trade were extractive.
  1. Collaborative Structure and Enforcement. All decisions of the AfCFTA institutions are reached by a simple majority vote. There are several key AfCFTA institutions. The AU Assembly provides oversight, guidance and interpretations of the Agreement. The Council of Ministers is designated by state parties and report to the Assembly. The Council makes the decisions that pertain to the Agreement. The Committee of Senior Trade Officials implements the decisions of the Council and monitors the development of the provisions of the AfCFTA. The Secretariat is established as an autonomous institution whose roles and responsibilities are determined by the Council.
  1. Eliminating Tariffs. State parties will progressively eliminate import duties and apply preferential tariffs to imports from other state parties. If state parties are a part of regional trade arrangements that have preferential tariffs already in place, state parties must maintain and improve on them.
  1. Settling Trade Disputes. Multilateral trading systems can bring about disputes when a state party implements a trade policy that another state party considers a breach of the Agreement. The AfCFTA has the Dispute Settlement Mechanism in place for such occasions which offers mediated consultations between disputing parties. The mechanism is only available to state parties, not private enterprises.
  1. Protecting Women Traders. According to UNECA and the African Trade Policy Centre, women are estimated to account for around 70% of informal cross-border traders. Informal trading can make women vulnerable to harassment and violence. With the reduced tariffs, it will be more affordable for women to trade through formal channels where women traders will not have to put themselves in dangerous situations.
  1. Growing Small and Medium-Sized Businesses. The elimination of import duties also opens up trading activities to small businesses in the regional markets. Small and medium-sized businesses make up 80% of the region’s businesses. Increased trading also facilitates small business products to be traded as inputs for larger enterprises in the region.
  1. Encouraging Industrialization. The AfCFTA fosters competitive manufacturing. With a successful implementation of this new trade initiative, there is potential for Africa’s manufacturing sector to double in size from $500 billion in 2015 to $1 trillion in 2025, creating 14 million stable jobs.
  1. Contributing to Sustainable Growth. The United Nations 2030 Agenda for Sustainable Development includes goals that the AfCFTA contributes to. For example, Goal 8 of the Agenda is decent work and economic growth and Goal 9 is the promotion of industry. The AfCFTA initiative also contributes to Goal 17 of the Agenda as it reduces the continent’s reliance on external resources, encouraging independent financing and development.

AfCFTA: A Trade Milestone for Reducing Poverty in Africa

The establishment of the AfCFTA marks a key milestone for Africa’s continental trade system. The size of the trade area presents promising economic development and sustainable growth that reaches all market sectors and participants. Additionally, the timing of the initiative launch is expected to contribute to the alleviation of the pandemic’s economic damages.

Malala Raharisoa Lin
Photo: Flickr

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

Improve Education in BangladeshIn a speech given at a Boston high school in 1990, Nelson Mandela said, “Education is the most powerful weapon which you can use to change the world.” For many of the world’s impoverished, education is not an option. Today, more than 72 million children of primary education age are not in school and nearly 759 million adults are illiterate. While many maintain the capacity to survive without an education, the knowledge and awareness garnered through school allows the impoverished to improve their living conditions and rise out of poverty. USAID and the World Bank are working to improve education in Bangladesh as a means of addressing poverty.

The State of Education in Bangladesh

In the last 10 years, there has been progress when it comes to improving education in Bangladesh. According to USAID, nearly 98% of children of primary school age are enrolled in school. In 2016, 50.9% of all enrolled students were girls, meaning total gender parity. Both of these statistics are major accomplishments but there is much more to be done to improve education in Bangladesh.

While enrollment is high, the quality of education that the children are receiving remains quite low. Reading fluency is the barometer that is used to measure a school system’s quality, and in Bangladesh, most students are unable to pass basic fluency assessments. To put exact numbers to this, USAID conducted an assessment and determined that “44% of students finish first-grade unable to read their first word and 27 % of third-grade students cannot read with comprehension.”

This lack of literacy not only puts these students at a great disadvantage but stunts prospects of economic growth for Bangladesh. Education plays a significant role in sustaining and developing countries and economies which is why USAID and the World Bank have invested in improving Bangladesh’s education system.

The World Bank’s Education Efforts

On January 18, 2021, Bangladesh signed an agreement with the World Bank, financing $6.5 million to help more than 39,000 kids receive primary school education. The package also allocates funds to vocational training schools for approximately 8,500 dropouts. Mercy Tembon, the World Bank country director for Bangladesh and Bhutan, says that the pandemic has disproportionately impacted the education of children from lower-income households. The additional financing will help slum children and vulnerable youth to build the foundations necessary to improve their lives and increase their opportunities. The World Bank has given Bangladesh the means necessary to improve the quality of their education system and thus support the greater economy.

USAID’s Educational Assistance

USAID has taken a more hands-on approach in improving the quality of education. It works directly with Bangladesh’s Ministry of Primary and Mass Education to improve early grade reading for children to ensure that all children learn to read in their first years of schooling. USAID’s education programs in Bangladesh have:

  • Expanded access to schooling to almost 30,000 out-of-school children
  • Increased the reading fluency of third graders by 18%
  • Increased the first-word reading fluency of first graders by 36%
  • Trained nearly 17,000 new teachers on how to teach early grade reading
  • Issued more than two million reading materials to primary schools

Education as a Key to Poverty Reduction

Every young mind deserves the opportunity for education and with the help of the World Bank and USAID, Bangladesh has the means to offer that. Efforts to improve education in Bangladesh will uplift an entire nation. The state of education in the world is progressing and thus bringing about poverty reduction success.

Matthew Hayden
Photo: Flickr

the BSCFABelize’s sugar cane production has been a major staple to its economy since the 1800s. Today, it supports the livelihood of around 15% of Belizeans, contributes to 6% of Belize’s foreign exchange income and adds 30% gross value to the country’s agriculture. Due to its overall importance, organizations have taken great steps to help protect sugar farmers and improve their working conditions. A major step toward this goal was when the Belize Sugar Cane Farmers Association (BSCFA) became Fairtrade certified in 2008. Since then, the value of sugar from Belize has grown and better working conditions and human rights have been established.

Sugar Cane Farmers in Belize

Sugar cane farmers and plantation workers often struggle because sugar prices in international markets are low and processing sugar cane is long and expensive. Smaller farms also have trouble getting access to lucrative markets that would buy more sugar. The compensation smallholder farmers receive for cane often fails to cover the costs they incur to produce it, leaving them in a debt trap and with little capital to reinvest in farms. They also cannot pay for newer equipment that would help make the process easier, faster and cheaper. The significant amount of time invested in farming to provide an income often leaves little time to engage in other opportunities that can pull them out of poverty, such as education. Fairtrade aims to alleviate these problems by helping people and organizations get better representation in the market and better prices for their crops.

The Impact of Fairtrade Certification

Since 2008, Belize’s sugar cane exports have increased greatly, particularly in the European market. In the first five years of the BSCFA becoming Fairtrade certified, Belize’s sugar cane gross profit grew significantly. Belize has also been able to increase the amount of sugar cane produced every year due to farmers getting resources to control pests in the early stages of the growing process and access to better farming and processing tools. From 2018 to 2019 alone, Belize went from producing 150,000 tons to more than one million tons of sugar cane.

Impact on Communities in Belize

A huge benefit of being Fairtrade certified is that organizations will receive premiums — extra money that farmers and workers can invest in their businesses or the community. The BSCFA gets around $3.5 million in premiums a year and has used that as grants for education, building and repairs, community spaces such as churches and libraries, funerals for impoverished families, water tank systems and more.

The BSCFA has continued advocacy and empowerment efforts to improve the working conditions of sugar cane farmers. In 2015, the BSCFA took a strong stance against child labor, lobbying the government to make laws against child labor and personally suspending support of farms that violated fairtrade practices.

Due to advocacy efforts such as these, the government of Belize has taken steps to stop child labor, such as working on bills that help others identify child labor situations and updating its Child Labor Policy to add additional protection for children. It also established a Child Labor Secretariat that works on identifying and reporting child labor cases.

Fairtrade and the BSCFA have made significant strides in protecting the rights of sugar cane farmers while expanding the economy. These efforts are lifting people out of poverty and ensuring that fairness prevails.

– Mikayla Burton
Photo: Flickr

investing in BrazilThere are numerous reasons to invest in foreign aid in general. That can include partaking in growing the global economy, promoting international human rights and opening donor countries to potential investment returns. What makes Brazil a particularly good market to invest in is its promising role in the global economy. There are several reasons why investing in Brazil is beneficial.

COVID-19 Response

As of January 2021, Brazil has the third-most COVID-19 cases worldwide. The Brazilian economy was not in its best shape at the start of the pandemic because it has not fully recovered from the 2014-2015 recession. This made the economy vulnerable to precarious economic shocks that resulted in increased poverty, unemployment and small business fragility.

The COVID-19 pandemic has left countries like Brazil with possible lasting economic damages. Many emerging and developing countries rely heavily on foreign aid for financial and humanitarian support. Offering foreign aid to Brazil will not only help pave the way for a domestic post-COVID recovery but also alleviate some of the negative impacts of the pandemic through humanitarian benefits.

Diversified Opportunities in Emerging Markets

The Brazilian economy is classified as an emerging market. Emerging markets are economies that are transitioning into a developed economy. Since the launch of the MSCI Emerging Market (EM) Index in 1988, which measures portfolio performances of emerging markets, investing in emerging countries proved to create new and diversified opportunities outside of common markets.

Market Expansion and Economic Growth

Since 2016, Brazil has shown an increase in GDP growth with approximately a 1.3% increase. In 2020, Brazil fell back into recession because of COVID-19. However, Brazil’s economy displayed growth and has played an important role in the growth of the Latin American economy as it makes up 35% of the Latin American GDP. It is approximated that the Brazilian market reaches 900 million consumers in just the Americas.

On how quickly the Brazilian economy rebounded, Bloomberg reports boosted domestic demand and exports with a 9.47% rise in economic activity index from July to September of 2020 in comparison to the previous months.

As Brazil recovers from COVID-19’s economic impact, it leaves opportunity for foreign investors to take advantage of Brazil’s growing market, especially with its low interests. Some of Brazil’s profitable sectors include real estate and agricultural goods like coffee, sugar cane, corn and soybean. Participating in these sectors expands Brazil’s domestic market and hence the world market size.

Geographical Location

Especially for the United States, Brazil’s proximity allows easier trade. For other advantages, Brazil’s geographical properties for the agriculture sector also make its commodities attractive. Approximately 28.7% of land is used for agricultural production which makes up more than 4% of the annual Brazilian GDP. Following China, the United States and Australia, Brazil has the fourth-most amount of agricultural land.

Foreign Investment Returns

Encouraging enterprises to invest in foreign aid can ultimately result in great returns. A common type of foreign aid for these corporations is Foreign Direct Investment (FDI). Through FDIs, corporations can potentially gain lasting interests, multinational consumers and flexible production costs. This type of foreign aid also brings developing countries like Brazil innovative technology, investment strategies, jobs and infrastructure from investing corporations of developed nations.

Foreign investment is critical to developing and emerging markets. Investing in Brazil promotes development and sustainability and also benefits foreign investors greatly. Furthermore, foreign investment assists economic recovery following unforeseen economic shocks like that of the COVID-19 pandemic.

Malala Raharisoa Lin
Photo: Flickr

Coca Farmers Poverty traps Colombian coca farmers in an unsustainable, unethical and sometimes dangerous occupation. During the country’s half-century-long civil war, rural communities were built up around the cultivation of coca to be used in the production of cocaine.

The Peace Deal

Militant guerrilla groups such as Revolutionary Armed Forces of Colombia (FARC) were reliable buyers of coca crops as they used the cocaine trade to finance the war with the Colombian government. However, in 2016, a peace deal was agreed upon between the Colombian government and FARC that officially put an end to the civil war in Colombia. The peace agreement included a plan to wean rural communities off of the cultivation of coca by asking them to uproot their own coca plants and then providing them a monthly stipend as well as technical assistance in order to assist them in transitioning from coca to other crops. Due to organizational and financial oversights, however, many coca farmers have not received their full stipends nor have they received the technical assistance to change crops. Despite this, the Colombian government continues to carry out forced coca crop eradication efforts that leave these communities with no viable source of income.

Impoverished Farmers in Colombia

Even though the Colombian civil war is officially over, armed groups still vie for control of the cocaine trade, often employing violent, coercive methods to secure a steady supply of coca from impoverished farmers, putting coca farmers’ families and communities at risk due to the production of coca.

Often struggling to make ends meet, farmers rely on the steady income that coca cultivation provides them, despite their concerns about ethics and danger. With the implementation of the government’s coca replacement program falling flat, coca farmers were given little choice but to continue to cultivate coca crops or watch their families go hungry. Colombian law enforcement officials say 40% of forcefully eradicated coca crops are replanted. Voluntary replacement of coca crops with other crops is much more promising, with replanting rates near zero.

The Voluntary Replacement of Coca Crops

The voluntary replacement of coca crops with cacao allows farmers to provide themselves with a reliable income without having to endanger themselves or contribute to the narcotics industry. The National Federation of Cacao Farmers (Fedecacao) has been helping farmers to make this transition. With yields of up to 800kg per hectare, a cacao farmer can earn up to double the minimum wage of Colombia, making coca cultivation a less attractive alternative due to its illegality and the violence that the coca industry brings about. On top of this, the cacao industry in Colombia is growing with 177,000 hectares devoted to cacao­­, 25,000 of which were transitioned from coca cultivation. The increased production of cacao has resulted in Colombia becoming a cacao exporting country.

Joel Palacios Advocates for Cacao Transition

One particular example of a successful transition from coca cultivation to cacao is taking place in the department of Chocó in western Colombia where 60% of people live below the poverty line. Joel Palacios, a native of Chocó, has been devoted to advocating for the replacement of coca by cacao since 2011. For years, Palacios ran a chocolate training center for coca farmers who desire to grow cacao and turn it into chocolate. Palacios then launched Late Chocó, his own artisanal chocolate company based in Bogotá.

Helping Farmers Transition to Cacao

Stories like that of Palacios show the benefits of working with coca farmers to replace dangerous and illegal crops with more legal, profit-earning alternatives such as cacao. Whereas forcible, nonconsensual uprooting of coca produces inefficient results, the prospect of a steady, legal source of income incentivizes coca farmers to make the transition to cacao on their own.

Willy Carlsen
Photo: Flickr

Mobile Data TrafficMany poverty-stricken individuals do not have access to the internet, creating a digital divide. The COVID-19 pandemic has revolutionized mobile data traffic around the globe, particularly in sub-Saharan Africa. Mobile broadband supports access to education, work, healthcare, goods and services. It plays an imperative role in reducing poverty. With nearly 800 million people in the region still without access to the mobile internet, it has never been more urgent to close the digital divide.

The Need for Mobile Broadband

According to Fadi Pharaon, president of Ericsson Middle East and Africa, the increasing demand for mobile broadband provides an unprecedented chance to improve economic conditions for Africa. Currently, Africa is one of the quickest growing technology markets.

In addition to younger populations requiring technology to develop practical computer skills, during the COVID-19 pandemic, access to the internet is also crucial for remote learning and remote work to continue development and economic progression.

In response to the pandemic, sub-Saharan African countries that were able to implement telework adaptations had considerably greater access to the internet, as much as 28 % of the population, as opposed to countries that were not implementing telework, at 17 %.

Due to the increase of digitalization during the pandemic, these developments are expected to positively contribute to the region’s economic recovery post-pandemic. Research suggests that expanding internet access to cover an additional 10% of the region’s population has the ability to increase gross domestic product (GDP) growth by one to four percentage points.

The Mobile Broadband Demand

Fixed Wireless Access (FWA) delivered over 4G or 5G is a more affordable alternative to providing broadband in areas with limited access. By 2025, FWA connections are expected to reach 160 million, accounting for 25% of global mobile data traffic.

The estimated total growth of mobile data traffic is from 0.87EB per month in 2020 to 5.6EB by 2026, an increase of 6.5 times the current figures.

To keep up with the demand, service providers are predicted to continue upgrading their networks to meet their customers’ evolving needs.

Additionally, networks expect to see an increase in customers purchasing mobile data subscriptions. Long-term evolution (LTE) was predicted to amount to 15% of subscriptions at the conclusion of 2020.

Novissi Digital Cash Transfers

The Novissi cash transfer program in Togo is an example of why mobile broadband access is important in developing countries. To support struggling people in Togo during COVID-19, instant mobile cash payments were made to their mobile phones to address urgent needs. The program provided more than half a million people with financial assistance during a crisis.

Closing the Digital Divide Reduces Poverty

Experts suggest that funding infrastructure, increasing electricity access and developing approaches to support digital businesses will aid in economic recovery and continue to close the digital divide. While sub-Saharan Africa has seen an acceleration of mobile data traffic during COVID-19, more action still needs to be taken to support its citizens post-pandemic. Providing affordable access to mobile phones, mobile broadband subscriptions and internet access will help support the recovering economy and alleviate poverty in the region.

Diana Dopheide
Photo:Flickr

RCEP will benefit Asia's impoverishedOn November 15, 2020, 15 Asia-Pacific countries signed The Regional Comprehensive Economic Partnership (RCEP). The RCEP is a free trade agreement (FTA) establishing new relationships in the global economy. The 15 countries that signed the trade deal account for 30% of all global gross domestic product and impact more than two billion people. The new economic opportunities that will emerge from the RCEP will benefit Asia’s impoverished.

The Introduction of the RCEP

In 2011, the Association of Southeast Asian Nations (ASEAN) Summit introduced the RCEP. Simultaneously, another free trade agreement, the Trans-Pacific Partnership (TPP), was undergoing development. The TPP’s existence failed to come to fruition when former U.S. president, Donald Trump, removed the U.S. from negotiations in 2017. Consequently, this led many Asia-Pacific nations to negotiate with each other to make the RCEP become a reality. The ASEAN Secretariat has declared the RCEP as an accelerator for employment and market opportunities. The RCEP has been seen as a response to the absence of U.S. economic involvement and a form of stimulating the economy due to the COVID-19 pandemic.

RCEP Regulations

The RCEP has a set of new regulations that made it enticing for many nations to join. As much as 90% of tariffs will be eliminated between participating countries. Moreover, the RCEP will institute common rules for e-commerce and intellectual property. The trade deal will also include high-income, middle-income and low-income nations.

RCEP Benefits for the Philippines

Allan Gepty, a lead negotiator from the Philippines, assures that the RCEP will benefit the low-income country in many ways. The RCEP will mean more investments in sectors such as e-commerce, manufacturing, research and development, financial services and information technology. Moreover, the trade secretary, Ramon Lopez, also believes the Philippines will benefit because the RCEP will bring job opportunities. In a country where the poverty rate stood at 23.3% in 2015, the RCEP will benefit Asia’s impoverished.

Supporting Myanmar’s Economic Growth

According to the World Bank, a way to promote the reduction of poverty in Myanmar is supporting the private sector to create job opportunities. Furthermore, vice president of the Asian Investment Bank (AIIB), Joachim von Amsberg, also believes the RCEP will benefit Asia’s impoverished. He sees the RCEP as a way to grant small and medium-sized enterprises (SMEs) more access to markets, thus creating more job growth and promoting infrastructure development.

Industries Impacted by the RCEP

Many other nations will benefit from the RCEP as well. Textile and apparel (T&A) is a key sector under the RCEP. While countries such as Australia and Japan have high labor and production costs, many others do not. The RCEP will increase investment to lower-cost and less skilled countries such as Myanmar, Cambodia and Laos. The trade deal will also impact the country of Vietnam. Vietnam will benefit from its exports which include footwear, automobiles and telecommunications. Furthermore, Vietnam is could also benefit from the exporting of agriculture and fisheries products. Malaysia anticipates greater opportunities in travel, tourism and the aviation industry. Malaysia is expected to increase its GDP between 0.8% and 1.7% through the RCEP.

The Potential for Poverty Reduction

The RCEP is the biggest trade deal in Asia-Pacific’s history. The trade deal is predicted to add US$186 billion to the global economy and 0.2% to the gross domestic product of each participating nation. Also, free trade agreements allow emerging economies to become more sustainable. According to the World Bank, poverty is reduced by boosting international trade. Global trade expands the number of quality jobs and encourages economic growth. The RCEP came at a time when there are future uncertainties due to the COVID-19 pandemic and its economic impacts. Many anticipate that the RCEP will benefit Asia’s impoverished.

Andy Calderon
Photo: Flickr