What will the growth of the Mongolian mining industry mean for the country's nomadic herders? Photo: Thatcher Cook for Mercy Corps

Mongolia could soon be home to the largest copper mine in the world.

After years of negotiations, Western mining companies Rio Tinto and Ivanhoe are close to reaching an agreement with the Mongolian parliament to develop significantly the Oyu Tolgoi mine. Mineweb reports that the untapped deposit contains 78 billion pounds of copper and 45 million ounces of gold. If all goes to plan, the massive investment would double the size of Mongolia's economy and create thousands of jobs, according to NPR.

The economic crisis has hit Mongolia harder than most countries in East Asia. One in four people are out of work, NPR reports. The country’s nomadic herders – 40 percent of the population – are struggling after the price of cashmere dramatically declined earlier this year (see Manasi Sharma’s Downturn in the Gobi). Now, some are hailing Oyu Tolgoi as an immediate economic fix.

But there are several obvious challenges. First, Mongolia is highly corrupt. It is ranked 102 out of 180 countries in the latest Transparency International index, an annual rating of perceived levels of corruption (defined as the abuse of public office for private gain). Additionally, the editorial in Mineweb suggests that Russia and China may have inordinate influence over Mongolia’s mining industry. Given these two factors, how much will the average Mongolian gain?

Lastly, there are the social implications of this investment to consider. For many nomadic herders, shifting to industrial mining jobs is far from ideal, but there isn’t much else to turn to. People are desperate now that raw cashmere and other materials do not provide a reliable way to feed and clothe families. "They are losing their land, their animals, and even their culture," reported NPR’s Louisa Lim, "for a few specks of gold."

The G-20 is meeting this week in Pittsburgh, Pennsylvania. Chaired by President Barack Obama, the purpose of the summit is to, “review the progress made since the Washington and London Summits and discuss further actions to assure a sound and sustainable recovery from the global financial and economic crisis.” I’ve heard of the G-8, but the G-20? I began to wonder about this alphanumeric soup of organizations. Who are they and what are they concerned with? The following scorecard should help interested followers of this subject keep track of the major players.

The G-6: Organized in 1975 by the finance ministers of Germany and France who were frustrated with the formality and structure of larger international meetings, the G-6 and subsequent evolutions of this body are strictly informal bodies that meet to discuss economic issues of mutual interest. After the creation of the G-8, the term G-6 is now used to refer to the six most populous members of the European Union. The member countries are: the United States, United Kingdom, France, Germany, Italy, Japan

The G-7: Formed in 1976, this is an informal forum for the finance members of seven big industrial economies to discuss economic issues and seek agreement. Member countries include: Canada, France, Germany, Italy, Japan, United Kingdom, United States. Now also includes the European Union.

The G-8: An evolution of the G-7, membership grew to include Russia. The European Union is a limited member; it cannot host a meeting or hold the presidency of the body. Members are: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member)

The G-8 plus Five: Recognizing the growing influence of other countries, the original group sometimes broadens their meetings by including the Outreach Five. As with all meetings, other countries are sometimes invited to attend. Members: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member) Plus: Brazil, China, India, Mexico, South Africa.

The G-20: According to their website, “[t]he G-20 was created as a response both to the financial crises of the late 1990s and a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance.” Where the earlier groups (G-6 through G-8) were organized around the industrialized countries of the world, the G-20 begins to bring emerging economies into the dialog. Their first meeting was in Berlin, Germany. The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.

The G-20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, European Central Bank

The G-33: The name for a group of developing countries that coordinates on trade and economic issues. It was created in order to help group countries which were all facing similar problems and give a unified voice to countries that were traditionally excluded from discussions among the industrialized countries. Members: Antigua & Barbuda, Barbados, Belize, Benin, Botswana, China, Côte d’Ivoire, Cuba, Democratic Republic of the Congo, Dominican Republic, El Salvador, Grenada, Guyana, Guatemala, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Laos, Mauritius, Madagascar, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Senegal, South Korea, Sri Lanka, Suriname, Tanzania, Trinidad & Tobago, Turkey, Uganda, Zambia and Zimbabwe.

There are other groups variously labeled as G-8, G-20, G-33, and even N-11 (countries which Goldman Sachs considered in 2005 to have a high potential of becoming the world’s largest economies this century: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam).

One of the best, reliable, sources of information about these groups and their members may be found on the websites of the World Trade Organization and the previously mentioned G-20.

You can Track the ongoing discussions of the Pittsburgh G-20 Summit here. But be prepared for slow page loading. It is a very busy website.

A new fundraising source for poverty reduction? Photo: freedryk (flickr)

How do you make up a yawning gap in funding for HIV/AIDS, tuberculosis and malaria? By asking airline passengers to pay an extra two bucks when they book their ticket. Time reports that UNITAID, a nongovernmental organization dedicated to combating those diseases, believes new funding approaches are needed as traditional aid funding can't keep up with the demand.

Thanks to a partnership with ticket reservation services, UNITAID will ask nearly everyone who buys an airplane ticket in the U.S. to donate two dollars to fight the diseases. UNITAID will then pass on the money to UNICEF, the Clinton Foundation and other organizations which will use the money to address the spread of disease, as well as to improve women's health and reduce child mortality.

Of course the program isn't likely to raise all the money needed to prevent the spread of disease, but McKinsey & Co estimates it could eventually raise $1 billion a year.

Point-of-sale donations are gaining momentum, with companies like Safeway and Hollywood video asking customers to donate the few cents necessary to round up to the next dollar or to donate a dollar. It isn't surprising that technology leaders like Expedia and Travelocity are the latest adopters.

Not a lot is known about North Korea. Westerners are rarely granted permission to enter the country. And we almost never get to see images other than those from state-coordinated photo ops.

But in May, Foreign Policy magazine published seven photos of North Korea taken by documentary photographer Tomas van Houtryve. Pretending to be a businessman looking to open a chocolate factory, van Houtryve toured Pyongyang under the watchful eye of his state-assigned guides. Despite his escorts, van Houtryve covertly snapped photos of life in and around Pyongyang.

The resulting photo essay, "The Land of No Smiles," shows empty streets, somber faces and dimly lit subways. They also offer a glimpse of what van Houtryve calls “emergency capitalism” — factories set up in special economic zones along the North-South border that allow South Korean companies to hire cheap North Korean labor.

Click here to see the photos — and don't forget to read the captions, which are nearly as fascinating as the images they describe.

Afghanistan is facing a dangerous new threat, but it does not involve suicide bombers or roadside explosives.

As the Washington Post reports, government corruption is threatening to topple Afghanistan’s fledgling democracy in the wake of a presidential election plagued by delayed vote tallies and reports of voter intimidation. The Wall Street Journal explains that corruption in Afghanistan is so pervasive that the United States and its allies are reconsidering their strategy in dealing with President Hamid Karzai. Allegations of misconduct are so prevalent that the U.S. has begun to view Karzai not as an ally, but as a liability in their effort to reconstruct the war-torn nation.

USAID recently released a report that said roughly two-thirds of Afghans had been victimized by a corrupt government official — the highest level ever recorded. In a country where the average person makes $700 a year, it takes a $400 bribe to be connected to the electrical grid.

If it's allowed to continue unchecked, the report says, corruption will make it impossible for Afghanistan to develop an economy capable of attracting foreign investment and aid.

Despite the obstacles to eliminating corruption, one organization has begun to make headway. The Christian Science Monitor reports how a multinational relief effort called the Aga Khan Development Network has begun to train Afghan villagers in basic accounting techniques. The villagers — who are now able to audit their community’s financial records — are better able to prevent embezzlement and theft. While the organization's efforts have so far met with success, they're only one soldier in the fight against a serious problem.

Credit problems in the Indian city of Ramanagaram hint of a broader microfinance credit bubble, says a recent Wall Street Journal article. According to the article, part of the problem is that lenders are less concerned about alleviating poverty and more concerned about turning a profit.

Traditionally, microlenders were nonprofits focused on community service. In recent years, however, many of the larger microlending firms have registered with the Indian central bank as a type of for-profit finance company. That places them under greater regulatory scrutiny, but also gives them wider access to funding. This change opened the door to more private-equity money. Of the 54 private-equity deals (totaling $1.19 billion) in India's banking and finance sector in the past 18 months, microfinance accounted for 16 deals worth at least $245 million...

Protected by high interest rates, lenders are handing out loans without ensuring that the borrowers can repay. The excess of available funds and large number of lenders provide a opportunity for debtors to pay their interest by taking on yet more debt.

Many debtors in Ramanagaram have borrowed themselves into a trap. They take out new loans to pay the interest on existing loans — rather than investing the money or paying off the principal — and then find themselves unable to continue paying when the debt load grows too large. Lending procedures should prevent this from happening, but they haven't in Ramanagaram.

Take the example of the woman in this Wall Street Journal video. After borrowing $150 to invest in her husband's business, she took on four more loans, each to pay for the interest on the prior loan. She is now caught in a debt trap, her current debt is nearly equal to her annual income.

Lenders are responsible for checking if a borrower has excessive debt. But at least one admits to the Wall Street Journal that they only check with the largest of loans.

In Ramanagaram, over-borrowing is creating an anti-microfinance backlash. Civic leaders are questioning the value of microfinance and Islamic clerics are telling local Muslims to stop taking on microfinance loans.

Microfinance is still one of the only ways for the world's poor to access credit, a piece in the Economist reminds us. The vast majority of borrowers repay their loans. More stringent supervision of lenders should prevent a worsening of the crisis.

Day laborers waiting for work in Northern Virginia. Photo: rev bri (flikr)

Working for less than the legal minimum wage. Pressured to not file workers' comp claims. Not receiving mandatory breaks.

These are just some of the egregious workplace violations that American workers put up with on a weekly basis, according to a new survey.

Researchers from the Center for Urban Economic Development, UCLA and the National Employment Law Project surveyed low-wage workers in New York, Los Angeles and Chicago. As the New York Times details, the researchers found that more than two-thirds of respondents experienced at least one form of pay violation — such as illegal deductions or loss of overtime pay— in the previous week. And one in four workers was making less than the minimum wage required by their state.

One of the survey's most disturbing findings was that only 8 percent of those seriously injured on the job filed workers' compensation claims. Employer intimidation was largely to blame. Half of injured respondents said that upon reporting their injury, employers either threatened firing, or calling the INS, and/or instructed workers not to file for workers' compensation benefits — all moves that are prohibited by national labor laws.

The report included recommendations that fell into three areas: improving enforcement of existing labor laws, revamping OSHA and other labor standards, and making sure all workers — even "unauthorized" immigrants — are treated equally.

Not everyone will agree with these reforms. But the survey sheds light on a serious problem. And although these days we're more concerned about the benefits we give those who are not employed, we should care equally about the rights we grant to those who are.

Popular vacation destinations are ready to give tourists what they're looking for, all that's missing now are the tourists themselves. Photo: Marvin (PA) (flickr)

Ah, summer. A time of rest, relaxation, meticulously planned vacations ... and this year, less travel.

One June report by a UN body predicted tourism would decline by 4 to 6 percent this year — and that's before the H1N1 virus further dampened travel.

Tourism is down even in the U.S., where tourists spent more money than anywhere else in 2008. But the downturn is worse across the Atlantic, according to an August Reuters story.

On Spain's popular Costa del Sol, tourist traffic is "the worst I have ever seen it," drink seller Pedro Hervas tells The Telegraph. "There is no one on the beach. If you came here last year at this time you would not be able to get around, there would be so many cars and people."

Analysts cited in a Wall Street Journal story on the battered Mediterranean tourism industry conclude that nations have yet to see the real effects of the tourism slump on economic growth.

"We are seeing a multifaceted impact from the crisis on the tourism sector and there will be a variety of consequences," Marko Mrsnik told the Journal. "These include employment consequences, consequences on the creditworthiness of households and companies in the sector and their ability to pay their debts, and it will certainly have an impact on government revenues."

In Greece about 19,000 jobs have been lost, people in the industry told The Wall Street Journal, and economists predict the lack of tourism could cut more than a percentage point off economic growth this year. According to the same Journal article, in Italy private-sector estimates of tourism-related job losses are as high as 150,000.

Some sunlight, however, has seeped through the dreary forecasts. After Iceland's economic meltdown made their currency more affordable, tourism spiked, and has continued to grow through the summer. North African countries such as Morocco and Algeria have also welcomed more visitors. Some of them are undoubtedly vacationing on the other side of the Mediterranean Sea for a change — or rather, to save some change.

Poverty isn’t always ugly. But it is always real. I recently visited the small village of Beru in the southwest corner of Haiti. For this slightly out-of-shape professor, it’s a hard day-and-a-half hike into the mountains northwest of Les Anglais. I went up there seeking to learn more about the satellite churches that had been planted by our sister church in Les Anglais. In 20 years of sponsoring our sister church in Les Anglais, no one from our congregation had ever gone up there. I am told that I’m the third “blanc” ever to visit.

Beru perches on the ridge of a mountain peak. Its nearly 2,000 inhabitants live in a few dozen roughly 200 square foot thatched-roof or tin-roof huts that neatly line the one red clay path that is the only “road” in and out of the village. Homes here are a kind of wattle (woven wood) and daub made by combining cow dung and mud that is painted white. Some of the homes have designs drawn on the walls. All of them have little white rock borders filled with gravel around the outside. Most have some kind of flowering plants to decorate the outside. The floors are packed earth, neatly swept. As many as ten people occupy each home. No electricity. No plumbing. The nearest running water is a polluted spring that's a two hour’s walk down the mountain. Food is cooked in a community kitchen, a thatched hut with a charcoal fire constantly tended by two women.

My guide for the trip was Etienne Francois, a young Haitian man that our church had funded over a decade ago to attend school to learn agronomy and veterinarian science. Beru is part of the district that Etienne serves. As we approach the village, it is clear that Etienne is well known and well liked. By the time we enter Beru proper, Etienne is holding half a dozen softball-sized avocados — gifts from those too poor to offer anything else.

Etienne shows me the town’s two churches. The Catholic Church is an open pavilion with one crumbling wall. The rusted tin roof is held up by wooden poles. Part of the roof has collapsed. The church also serves as a community center. Kids and adults have a running game of dominoes going all day. In the evening it hosts our meeting with the town’s elders and farmer’s group. The Christian church, a satellite church planted by our sister church, is in relatively better shape. Its concrete block walls and rusted roof are intact. Inside, it is furnished with a couple of wooden benches and a rough wooden lectern that serves as a pulpit. We’re told that the preacher lives back in Les Anglais and walks ten hours every Sunday to preach a service.

Camera in hand, I was wandering around the village of Beru when I heard singing coming from around the corner. When I poked my camera around the corner of a house, the children spotted me and came running to put on an impromptu show. As the children sang, I wondered how many of them would be here on my next visit; how many would die from typhoid or dysentery caused by polluted water; how many would die of starvation; how many would be drawn to Port au Prince or Cap Hatien looking for work only to end up victims of the sex trafficking trade or lured into drug-related gang activity.

A little further down the road is the government-built school. I’m aghast at what is not there. It’s a scene right out of Greg Mortensen’s book, Three Cups of Tea. The tin roof pavilion is supported by concrete pillars and a partial wall. The floor is dirt. When I ask, I’m told that there are no materials, no books and no teachers for first through sixth graders. They simply sit by grade and talk to one another. The older children look after the younger.

That night I’m offered the master bedroom in the village leader’s house as my own. It’s roughly 12 feet square and Etienne tells me that it would be rude to refuse the honor. I feel guilty knowing that the rest of the family is doubled up somewhere else in town. A tarantula the size of my hand watches over me from a corner. I make sure that my mosquito netting is tucked in tight.

In the morning the village leader’s wife gives us a “walking farewell.” She walks us to the edge of the village, chattering all the way, giving Etienne messages to pass on to other people. Just before she turns back, she hands Etienne another of the huge avocados as a going-away gift. She takes my hand in the almost intimate way that Haitians do when friends chat, kisses me on the cheek European style — another Haitian custom — and through Etienne tells me, “we live in abject poverty. We know that. But when you have no choice, then you must choose to be happy.” As we head back down the mountain, I feel like I’ve just been blessed.

Iraq's most lucrative export after oil - dates - has seen declining production since the American-led invasion began in 2003. Photo: Ikhlasul Amal (flickr)

The U.S.-led invasion of Iraq in 2003 and the subsequent violence has left the country struggling to survive. Now, Iraq’s economy is suffering even more due to declining production in one of its most thriving exports after oil: dates.

Dates are highly nutritious and a staple food in Iraq. Before the war, a typical palm tree was yielding 130 – 175 pounds of dates per year, compared to only 30 pounds of fruit last year, reports the New York Times. The country used to produce about 75 percent of the world’s dates at one point, but today Iraq has fallen behind many other Arab countries leading in date production.

The lack of “sufficient electricity, machinery and a drought” has severely damaged the agricultural industry, says Iraqi economist Ghazi al-Kenan. Prior to the U.S.-led invasion, there were more than 150 date processing factories. Today there are six.

Another factor contributing to the decline in date production is that the country's trade ministry — which is responsible for buying agricultural products for export from farmers — isn't purchasing dates at a high enough price to cover production costs for farmers, reports the New York Times.

But the decline in date production is causing more than just agricultural and economic problems for Iraq. Public health and the environment are also feeling the effects. Baghdad has experienced more sand storms, increased asthma cases and respiratory illnesses due to the shrinking of depleted farms and orchards surrounding the capital.

With the global economic downturn affecting oil prices, prospects for the date industry are looking grim. The Trade Ministry tells the New York Times that "it cannot afford to raise payments to farmers.”

Women in SHGs spoke about bright futures for their daughters and want to work towards increasing the educational opportunities that are available to them in their village of Karauli. Photo: Carmina Rinker

I recently returned from a study and service-leaning trip in India. While was there I traveled with a small group of Portland State University students and faculty, visiting several grassroots NGOs working with women's microfinance groups in Maharashtra. In this part of the world, Self Help Groups (SHGs) go beyond lending, they also are tackling issues like domestic violence, health care and politics.

Sitting in matching blue Saris with gold trim, about ten women are seated inside a small room passing chai and biscuits to their foreign guests. They discuss their business ventures, their children, and ask our small group of American students questions about our lives in the United States. One mother is beaming with pride as she coaches her small daughter to recite a poem, "Airplane, Airplane" in perfect English.

With the growing popularity of Kiva.org and the heightened awareness of the Grameen bank, many of us Westerners are just now discovering the impact of microfinance programs as a tool of poverty alleviation and women's empowerment. But for hundreds of women in the village of Karauli in Maharashtra, India, this is old news. Women here have been active in Self Help Groups (SHGs) for close to a decade or more, and in this time their participation has extended far beyond the collective savings, loans, that are the most basic elements of microfinance schemes. Self Help Groups are groups of women who come together to save money collectively, and from their collective savings they can take individual loans in order to make repairs on their house, buy goods for their microenterprises, send their children to school, or for whatever purpose they need it for. In addition the SHGs act as a social support network through which the women can come together to address individual and broader social issues such as domestic violence, women's health, and sanitation issues in their communities. SHGs differ from Joint Liability Groups (as used by the Grameen Bank), in that they usually have about 10-20 members whose loans come directly from the group's own savings instead of from a bank or Microfinance Institution. In order to mobilize more credit for larger loans, groups of SHGs often come together to form a Federation.

While visiting two of thirty or so SHGs that are active in Karauli, a village with a population of around 7,000, women spoke about taking out loans to send their children to the university in the nearby city of Pune, large entrepreneurial ventures such as opening a hotel, and accumulating a collective group savings of Rs 8.5 lakhs (equivalent to about 17,000 US dollars). Yet beyond the financial benefit that these women enjoy through their participation in the SHGs (as well as the pride and confidence that goes along with it), the women also spoke about other changes that extend beyond their individual and family levels, and to their greater communities. This ranges from launching village clean-ups to rid their communities of litter, participating in village politics (panchayats). The women who have adopted the blue sari uniform to wear to their monthly meetings organized a 100 Woman March to the Office of the Minister of Irrigation of Maharastra to raise their concerns over water availability and sanitation. This group has been together for over eight years, and during that time every women in the room — about half of their 20 members — has served a term as SHG leader. They explain that before joining the SHG they had little to no interaction and involvement in public spaces, yet with the leadership skills they have now developed as well as the mutual trust and social capital that has been built through the group, they now feel less inhibited to be active in the public domain.

These SHGs have been organized and facilitated by the NGO Chaitanya, based in the nearby town of Rajgurunagar. Chaitanya came into existence in 1993, and began by incorporating microfinance programs using SHGs in rural areas. Today they have expanded to include many other programs that address issues of livelihood and agriculture, legal needs, education, and health of the rural poor.