Managing Director of IMF Dominique Strauss-Kahn speaks at the World Bank/IMF spring meeting of 2009. Photo: World Bank Photo Collection (Flickr)

Earlier today the International Monetary Fund (IMF) announced plans to provide up to $17 billion in desperately-needed assistance to poor nations over the next five years. IMF managing director Dominique Strauss-Kahn was quoted in a press release that outlined the details of this historic response by the fund.

This is an unprecedented scaling up of IMF support for the poorest countries, in sub-Saharan Africa and all over the world... The G20 asked the Fund to help respond to the global economic crisis, which has hit the low-income nations so hard, and we are responding with a historic set of actions in terms of support for the world’s poor. The new resources and new means of delivering them should help prevent millions of people from falling into poverty.

By allowing Wal-Mart to sell only to wholesalers, the Indian government hopes to protect smaller merchants like the one shown here. Photo: (nz)dave (flickr)

Wal-Mart has long been a source of controversy, but the July opening of the chain's first store in India was greeted relatively warmly and drew huge crowds in its opening days, the Washington Post reports.

Wal-Mart India isn't the same as the American version. The store goes by the name Best Price Modern Wholesale, which reflects the fact that Wal-Mart India is a joint venture with Indian business conglomerate Bharti Enterprises. Another difference is that the store is open only to wholesale customers like hotel and restaurant owners, and their friends and family. Time reports that India's commercial laws prevent international retailers from directly competing with domestic businesses.

The flagship store is located in Amritsar, in the northwestern Indian state of Punjab. The arrival of Wal-Mart has created curiosity and interest, which the Washington Post highlights through one customer's reaction:

"In Punjabi, we have an expression: When there is a wedding, everyone flocks to see the new bride," said Kamal Gambhir, a wholesaler whose congested offices are located in this city's oldest bazaar. "I myself had returned from a trip and came back to hear little children asking, 'Where is the new Wal-Mart?' I told them it's on our most historic road."

As the largest retailer in the world, Wal-Mart has raised concerns in India about the store's consequences for smaller retailers and the vendors found in community markets. According to American Public Media's "Marketplace," some worry Wal-Mart's presence will raise business owners' profits while less-connected and poorer members of society are hurt by the new competition.

Wal-Mart says it will build 10 to 15 stores in India over the next three years.

A large oil refinery in Norway. Photo: Charles Masters (Flickr)

"Unlike almost every other country in the West," reports NPR "Norway remains relatively unscathed by the worst financial crisis in decades."

How did they do it?

NPR interviewed Amund Utne, the head of Norway's Finance Ministry, who chalks up Norway's current stability to a conservative saving policy. By only spending 4 percent of its oil income annually, Norway was able to save large amounts of money for the proverbial "rainy day fund." That rainy day arrived, and Norway is basking in the glow of its more conservative foresight.

We feel we're in an extremely strong situation because 80 percent of our activity is based in Norway," [Utne] says. "And the Norwegian economy is solid — in oil and gas, in seafood, in shipping."

NPR reports that many Norwegians haven't changed their spending habits. And because its banks didn't offer many of the newfangled financial products that ultimately got U.S. and some European banks in trouble, the government isn't contemplating any bailouts.

Of the country's staid banking system, Utne says, "In this situation, it may be good to be somewhat boring."

This has been reposted from the Mercy Corps blog.

I’ll get right down to it: I was disgusted, then furious when I read this morning that an energy trader might receive a $100 million bonus this year. The headline reads “Big Bonuses Are Back on Wall St.”

Dozens of financial services companies are now partially owned by the U.S. government (who has also covered huge percentages of their losses with federal bailout money) and are still posting quarterly losses in the billions of dollars. Yet they — and other Wall Street entities — continue to dole out bonuses that very few of us can even fathom.

Wall Street claims that such exorbitant bonuses are necessary to “retain top talent.” They’d have you believe that this is some kind of meritocracy, simply market forces at work. But when taxpayer money is involved, I believe it becomes something quite different: offering a $100 million bonus to one man is blatant kleptocracy.

I did some figuring. If I work until I’m 65 years old and average a salary of $60,000 per year, I will make $2.52 million over the course of my career. In other words, it would take me almost 40 lifetimes to earn as much as this man will be handed as a one-year bonus.

My father made just over $1 million, total, working 34 years for the same company. While I realize that inflation over a few decades must be factored in, the pay discrepancy between the average American worker and Wall Street executives is monstrous — but not as monstrous as the gap between those executives and hard-working folks in developing countries:

• The average worker in Bosnia and Herzegovina earns $7,700 each year (calculated by per capita income). Assuming that worker has a career spanning 40 years, it would take him or her 325 lifetimes to make $100 million.
• Nepal is one of Asia’s poorest countries — annual per capita income is only $1,040. It would take the average Nepali worker 2,404 lifetimes to bring home the amount of money that one financial services firm wants to give a single person as bonus pay.
• In Central African Republic, where per-capita income is only $740 per year and life expectancy 44 years for a typical male, it would take someone who worked for 30 years of that short life an astonishing 4,505 lifetimes to earn the $100 million casually paid out as an annual bonus to one man.

There are no easy answers to these glaring gaps. Obviously Wall Street has not learned its lesson from helping precipitate the global economic crisis — a crisis that is making millions of people around the world, including hundreds of thousands of Mercy Corps beneficiaries, suffer more than ever. Please take this as just a bit of perspective from one person who is pretty damned angry about it all.

People protest government bailouts and exorbitant executive pay on New York City's Wall Street. Photo: Walking Off the Big Apple (flickr)

Youth unemployment is high in Uganda: An estimated 80 percent of 15-24 year olds are unemployed. Photo: johnhayes5032(flickr)

A recent Christian Science Monitor article takes a look at one school's approach to helping young women address the challenges of poverty and unemployment in Uganda.

With a median age of 15, Uganda has the world's youngest population, according to a 2008 World Bank report. It also has the highest youth (ages 15-24) unemployment rate: 83 percent. It's common to find 20-somethings with law and business degrees stocking supermarket shelves.

The article points out an all girls school in Kagdai, Uganda, that is trying to break this cycle. Sponsored by the non-profit Uganda Rural Development Programme the school is choosing to fight poverty by unleashing the potential in 250 of Uganda's poorest girls. The URDT's mission statement says that they wish to give the girls the tools, and encouragement they need in order to become the "creators of their desired circumstances."

To do so the school uses a two-generational approach that helps both the future generation (students) as well as the current generation (parents). So, the daughters team up with their parents and figure out what part of their lives they want to change then with the help of their teachers, together they make that change happen. Whether this is learning to grow enough crops to feed their family, or building a cleaner latrine, the school reminds the girls that they are their own number one resource for change.

Thanks to URDT's encouragement these girls are creating both jobs and change for themselves. As the Christian Science Monitor says, the students are making "yes we can more than just a campaign slogan from a far away land."

Photo: blentely(flickr)

We may be in the midst of global recession, but if countries react by curbing their trade with each other, it will only hurt the poorest among them.

That's the gist of the message delivered by Pascal Lamy, director-general of the World Trade Organization, in a recent Wall Street Journal opinion piece.

History tells us that no poor country has ever become wealthy without trade, Moreover, many developing country success stories — Singapore, South Korea, Chile, China and Malaysia, to name only a few — have, in recent decades, seen their national incomes grow by a percentage point or more per year as a result of open trade policies than would [not] have been the case had they remained closed. The extra funds generated during this period have enabled them to respond to the crisis with stimulus packages that have prevented the crisis from turning into a protracted recession with its inevitable human costs.

In 2005, the WTO adopted an initiative called "Aid for Trade" to support and encourage trade. The initiative does two things: It funds infrastructure projects like roads and electrical grids, and trains exporters on how to comply with the safety and quality standards of other countries.

This week the WTO is convening in Geneva with select development banks and aid organizations for Aid for Trade's annual review. In his Wall Street Journal opinion piece Lamy tells us that, "we have to make sure [Aid for Trade] is more and more effective in helping developing countries overcome their economic difficulties. It's what people expect from us today."

The collapse of Iceland's three largest banks earlier this year sent ripples through the country's economy. In time the bank's collapse led to high inflation rates, protests, rising unemployment, and eventually, a resignations by many government officials. This Wall Street Journal video takes a closer look at Iceland's economic crisis, and how Icelanders are fairing under the country's new economic reality.

Changing the dates of the weekend in Algeria has been endorsed by the World Bank. Photo: Radio Nederland Wereldomroep (flickr)

The Algerian government hopes to boost the country's economy by shifting the weekend from Thursday and Friday to Friday and Saturday. The change comes after 33 years of Thursday-Friday weekends.

Because most other countries observe Friday and Saturday as the weekend, Algeria operates out of sync with its trading partners. The government expects the date change will add $800 million to Algeria's annual gross domestic product.

Rooftops of a Mumbai slum. Photo: Kaustav Bhattacharya (Flickr)

One in every five people living in Indian cities live in slums. And India wants to move all those people — 62 million to be exact — out of the slums in five years by promoting what they're calling "ultra-low-cost housing."

The Economist reports that ultra-low-cost housing are multi-story flat developments built outside of cities where land is cheaper. Companies like Tata Housing are building units that are teeny and no more than three stories tall so they don't require steel framing or skilled labor to build.

Initial challenges surfaced when low-income citizens failed to meet traditional loan requirements. But recently, two government-backed banks have agreed to provide more capital to finance companies. This allows those companies to provide loans to low-income people that would have previously been rejected.

However, the government banks require the purchasers to validate their income and pay 25 percent of the cost up-front. Some of the cheapest flats are $4,500, and a down payment would be close to $1,200. Slum dwellers usually earn about $1,900 per year. These obligations coupled with transportation costs to and from the developments make ultra low-cost housing much less affordable.

Although India's goal of a slum-free nation is admirable, it is ambitious and quite unrealistic. With India's population ballooning, it will take more than ultra low-cost housing to transition millions on the verge of poverty to the middle class.

Palestinian students building technology skills. Photo: Cassandra Nelson/Mercy Corps

Eight years ago Microsoft hosted the first Imagine Cup, a year long contest that challenges students to use technology to come up with solutions to the world's toughest problems. This year's Imagine Cup challenged teams to come up with ways to help developing countries achieve the UN's Millennium Development Goals (MDGs). The MDGs consist of eight goals aimed at reducing global poverty by 2015. Teams from over 100 countries submitted their concepts and the finalists earned a trip to Cairo for a shot at one of the $25,000 prizes.

The winner for software category was a Romanian team that designed a program to help people connect with government agencies that the team hope to implement back in their hometown. An Indian team won a special award for developing a computer game that educates children about malaria. One of the more imaginative offerings came from a South Korean team that developed a means to help farmers more successfully breed insects for food.

Greenland is melting, but newly discovered energy resources might help its economy. Photo: ...Tim (flickr)

Life is difficult in a country that is 80 percent ice.

That's why 58,000-person Greenland has a different stake in climate change than the rest of us: warming could lead to economic growth.

The ice cap covering most of the country has begun to melt, uncovering oil and gas deposits in the Arctic Ocean. The Economist reports that the Arctic could hold 90 billion barrels of oil and 47 trillion cubic meters of natural gas, most near Greenland.

The government's interest in thawing areas has increased since June, when Greenland was promised gradual autonomy from Denmark, its colonial overseer since 1721. Greenland's government now controls the destiny of its resources, a situation recently profiled in The Economist.

Greenland's lack of economic opportunities fuels social problems. Unemployment is high and educational levels are low. Most export revenues come from fishing, but the government relies on aid from Denmark amounting to about $11,000 per Greenlander per year. Widespread depression, alcoholism, suicide and domestic violence help place Greenland's life expectancy below that of many other developing countries.

"Greed is ok when you let others profit from it, but greed for oneself is bad, it makes you ill," the Dalai Lama said in an interview with Welt Online. Photo: Giandomenico Ricci (flickr)

At the beginning of July, two influential religious and spiritual leaders made statements within days of each other about the financial crisis and the responsibility of the wealthy to help the poor: Pope Benedict XVI and the Dalai Lama.

In the past month we have watched the world's wealthiest and most powerful meet to discuss the economic crisis and the future for the international community's poorest members. The WTO warned of the dangers of protectionism while meeting in Geneva. The UN announced that the number of hungry people now exceeds one billion worldwide. And the G-8 announced a $20-billion commitment to fight hunger when they convened in Italy for their annual summit. The comments by the Pope and the Dalai Lama seem particularly relevant considering these recent events.

On July 7, a letter written by Pope Benedict XVI was sent to all Bishops of the Roman Catholic Church, entitled "Charity in Truth." In the letter the Pope questioned the value of today's corporations.

Today's international economic scene, marked by grave deviations and failures, requires a profoundly new way of understanding human enterprise. Without doubt, one of the greatest risks for business is that they are almost exclusively answerable to their investors, thereby limited in their social value.

Earlier in that same week, the Dalai Lama was interviewed by the German news site, Welt Online. In the interview the Dalai Lama talked about the role he sees for corporations and the wealthy to make a positive difference for the world's poor. When questioned about globalization, the Dalai Lama responded:

I am essentially a supporter of globalization. In the past societies and countries could seal themselves off from the rest of the world, but today this has become impossible. When we search for organizations that have the capacity and ability to improve our world, global companies are at the top of the list. In particular integrated global corporations are in an ideal position to support developing countries to close the gap to leading national economies.

He also talked about greed as a root cause of the financial crisis, but was careful to note that wealth on its own "is not necessarily a bad thing."

Wealth is not necessarily a bad thing when it has been earned in an honest manner and neither other individuals nor the environment suffered for it. As Buddhists we recognize that wealth is a basic prerequisite for a happy life. But a billionaire also only has ten fingers. He can fit three or four rings on each finger, but that would look weird. The satisfaction many millionaires who don’t share their wealth have in their heads is fictitious and not real. Rich people should help reduce poverty.

Amid the flurry of black suits, interpreters and diplomatic cordiality we might usually associate with discussions of trade and economic policy, the sentiments expressed by Pope Benedict XVI and the Dalai Lama offer additional views about wealth and responsibility that are worthy of reflection.

Will Allen loves worms! And showing visitors his Tilapia tanks at the Growing Power Farm in Milwaukee. Photo: grifray (Flickr)

In the past year, there's been a substantial rise in the number of Americans starting backyard gardens and growing their own food. But few are growing food for 10,000 people.

Earlier this month, the New York Times featured the work of Will Allen and his urban farm in Milwaukee, Wisc., called Growing Power. Allen's small but intensely efficient 14-greenhouse farm harnesses the slightly repulsive power of animal excrement and worm castings to enhance his soil without resorting to harmful pesticides and polluting fertilizers. He grows many varieties of fruits and vegetables, raises tilapia and gets fresh eggs from his hens.

But a big part of what makes Will Allen's farm unique is it's location, a formerly abandoned nursery located near Milwaukee's large housing projects. Many of the folks that consume the bounty of Growing Power are low-income residents from neighboring projects. These residents would otherwise have to travel a few miles to find produce of similar quality if it weren't for Allen's urban farm.

Allen sees great potential for urban farms like his own. He tells the New York Times that factors like high unemployment, food scares and rising food prices will prompt 10 million new urban farmers to enter the world of small-scale agriculture by his estimates. Of those, he thinks about 2 million will soon quit, but “the experience will introduce those folks to what a tomato really tastes like, so next time they’ll buy one at their greenmarket.” He contrasts his approach to that of industrial agriculture, which "is depleting soil, poisoning water, gobbling fossil fuels and stuffing us with bad calories."

Allen knows his project isn't for everyone; his success relies largely on volunteers, grant money, and his own extraordinary abilities.

“Not everyone can grow food,” Allen acknowledged. But he offers other ways of engaging with the soil: “You bring 30 people out here, bring the kids and give them good food,” he said, “and picking up those rocks is a community event.”

Displaced Swat Valley citizens await food and water in a refugee camp. Photo: bbcworldservice (Flickr)

As the Pakistani Army continues to defend the Swat Valley against Taliban insurgents, some of the millions of displaced residents are beginning to return home.

NPR's Julie McCarthy and Junaid Kahn report mixed feelings from those interviewed at the sweltering Jalozai camp. Some are excited to leave, looking forward to returning home with family and friends. The sister of Shaukat Ali, to modest to give her real name, is among those elated to settle back in Swat. She has "not spent a single contented day... Life here is nothing but helplessness."

But the majority of refugees aren't quite as elated to leave the relative security of the camp for the chaotic welcome they could to receive upon returning to their villages, reports the BBC. Earlier today I spoke with Holden Basch, Mercy Corps' Emergency Response leader in Pakistan, who reported that that in Buner, a district in the Northwest Frontier Province of Pakistan, police officers and government officials aren't back to work yet.

Others aren't leaving until they receive their $300 check, a government stipend promised to all camp residents. Akhtar Muhammad is among those waiting for the money. He told NPR reporters that "If the government hasn't given us the resources here where the situation is normal, how can I expect them to give it to us in the middle of that confusion back home?"

The future of these refugees is still unknown — the Taliban that are reportedly still in hiding in the Swat are unhappy with the families who fled the area. According to the BBC, security outside of the central city of Mingora is uncertain, with potential for guerrilla attacks by the Taliban. But for some, home is preferable to cramped quarters, extreme heat, and limited food at the refugee camp, and so those who are ready board buses for an uncertain home in Swat Valley.

The U.S. farming industry has taken quite a hit recently.

Just a year ago, prices were reaching record-breaking highs. But the food-price boom has been followed by a bust, and for many farmers it's costing them more to run their farms than they are actually making by selling their crops, reports CNN.

Jimmy Wayne Kinder, a fourth-generation farmer in Oklahoma, lamented about crop prices to the New York Times. “The market says, ‘Here’s the price. You want to make any money, get below it.'" Jimmy's story is part of a New York Times series called "The Food Chain," which allows you to examine the shifting changes in global demand and actual food production through articles, video and slideshows.