Thatcher Cook for Mercy Corps

"Microloans" are all the rage these days, as more people embrace the theory that small loans to the poor can stamp out poverty everywhere.

But even one of the main proponents of microfinance — the founder of the Internet microloan site Kiva — told the Council on Foreign Relations that microfinance is "just one factor" in economic growth:

So my conclusion at this point is that microfinance is weakly associated with macroeconomic growth. It’s just one factor; it’s not necessarily going to cause a country’s GDP [gross domestic product] to increase. It has to be accompanied by things like good governance, infrastructure, transparency in economics, and all sorts of other things that microfinance cannot in and of itself to bring about.

Flannery also points out that loans of $50 or $100 cannot build roads or schools. Microfinance certainly has its place, but Flannery provides a nice reminder that it's not a cure-all.

Photo: C Mulvany (flickr)

In the global rush towards biofuels, some countries are being forced to choose between affordable food and renewable energy. Many poor nations cannot afford to use staple crops like corn or soybeans as fuel. But some scientists and policymakers believe that they may have found a solution: jatropha.

Jatropha is an inedible nut that can be grown on non-arable land with little water or maintenance, and it's increasingly being identified as a possible alternative source for biofuels. Because its production would not take up valuable farmland, and would have little (if any) impact on food prices, jatropha is particularly attractive to developing countries seeking a balance between increasing energy demand and poverty alleviation.

India is currently trying to launch what would be the world’s largest jatropha biofuels project to date. Its Ministry of Rural Development has proposed a five-year, $375-million project to plant over one million acres of jatropha and research its potential as a fuel source. India is far from alone in its efforts to promote jatropha. Last year, British Petroleum signed a $160-million deal with a British biofuels firm to develop a joint venture in jatropha. A number of countries are pursuing their own jatropha projects, including South Africa, Malaysia, Brazil, Mali and others.

Photo: Chris Hondros for Mercy Corps

Like it or not, Kosovo is independent. Yet its survival depends on whether or not it will be able to build a functioning and sustainable economy, a goal that remains far from certain. Post-independence Kosovo faces daunting economic challenges, including weak infrastructure, unemployment rates of nearly 50 percent, and economic corruption that has been ranked as fourth worst in the world by Transparency International.

Although some in Kosovo are confident about prospects for economic growth and development, many estimate that it will be another ten to fifteen years before Kosovo can support itself economically. Commentary from the World Politics Review argues that independence may actually exacerbate Kosovo's economic problems:

While Kosovo may be able to get loans now from the IMF and World Bank, the last nine years have shown that aid alone is not going to do it. Kosovo has already received 25 times per capita the amount of aid given to Afghanistan, and the economy is still in shambles. Furthermore, it is a safe bet that Serbia will obstruct investment in Kosovo, first by shutting down the commercial border between the countries, and then by challenging privatization plans in the World Court and other international bodies. Late last week, Serbia indicated that it will continue to pay Kosovo's debts to the international community, which will amount to $70 million this March alone. Serbia's only reason for doing this is to preserve its legal claim to the territory and its right to tax any development projects. The legal wrangling likely to result will tie up proposed projects for years, and chase away the few investors Kosovo might be able to attract.

Photo: Reuters/Finbarr O'Reilly

A controversial article in a recent Economist refers to further evidence of the advantages of genetically modified crops (GMOs).

"The Next Green Revolution" discusses long-standing opposition to GMOs in Europe — many on the continent "have yet to touch or taste them," the article reads — but points out that rising GMO production means it will become increasingly more expensive for Europe to avoid importing them.

I have long been concerned about the Europeans' stance on GMOs — not because Europeans are denying themselves more cost-effective food products, but because of the impact that their position has had on the poor, particularly in Africa. A number of African countries have followed Europe's lead by banning imports of GMOs. I find it to be very sad when the poor and sometimes starving are denied access to less-expensive food because of short-sighted logic in Europe.

The fact that GMOs can provide cheaper food has long been generally accepted. But critics have argued against GMOs on the basis that the crops might have long-term risks. But these risks are vague and unspecified, so to deny the advantages never seemed logical to me. Now that the possible disadvantage to GMOs has been put to rest in many parts of the world, I hope the poor and hungry in Africa and elsewhere can finally access this money-saving solution to an important problem.

This isn't an adult tricycle, it's an innovative way to reduce the number of people — estimated at 1.1 billion — who lack access to clean drinking water.

The Aquaduct is essentially a bicycle that can transport and filter up to 20 gallons of water at a time.

It's simple to use: Just ride to your local water source and pour water into the rear holding tank. As you ride home, the pedaling forces the water through a filtration system and into a smaller holding tank in the front. You can also filter the water by pedaling in place.

Watch the video to see how it all works.