Brazil

Payment for protection: an innovative program boosts incomes and saves trees

Mercy Corps made cutting down trees for cooking fuel more sustainable through a reforestation project in Alta Verapaz, Guatemala. Photo: JGrant for Mercy Corps.
Mercy Corps made cutting down trees for cooking fuel more sustainable through a reforestation project in Alta Verapaz, Guatemala. Photo: JGrant for Mercy Corps.

A new program in Brazil is turning tragedy on its head by paying the poor to preserve their natural surroundings.

Resource depletion and environmental degradation are common echoes of poverty. Desperate to get by, many rural poor turn to the only income source around: the natural environment.

That's why Brazilian president Dilma Rousseff outlined a new program called Bolsa Verde (green allowance) to promote environmental protection and decrease deforestation in the Brazilian Amazon, according to mongabay.com. The program will provide BR $300 (US $180 US) every three months to extremely impoverished families living in national forests and sustainable reserves. Recipient families must currently have monthly incomes of less than BR $70 (US $40) to qualify.

In exchange, residents pledge not to deforest illegally or to poach timber. It’s a huge jump in income for the poor, and in one of the world’s most rapidly growing economies, it's a small price for the public to pay.

“Incentive is important because we assign an economic value to nature. It's as if it were compensation for conservation," said Manuel Cunha, president of the National Council of Extractive Populations of Amazonia.

The program is modeled after Brazil’s existing and widely respected Bolsa Familia (family allowance) program, which has helped reduce poverty and inequality over the past several decades, according to The Economist.

Bolsa Verde seeks to expand these successes, reducing the strain of poverty on ecosystem services as well. And when the environment is protected, the poor lead better, healthier lives. So Brazil plans to increase people’s income so they take better care of their environment and themselves.

The government, however, isn’t trying to stop resource consumption that people depend on. "It is an incentive to have sustainable use of natural resources. [Residents] have the right to use biodiversity, but in a sustainable manner," Roberto Vizentin, Secretary of Sustainable Rural Development of the MMA, told Globo News.

If effective, this could mean both improved financial livelihoods and reduced vulnerability for Amazonian residents. And the environment and the rest of the world get something from the deal as well.

Steal this policy! Why the public sector should learn to share

Topics: Governance, Innovation, Trade
Countries: Brazil, Germany
Could an open source philosophy be the evolution of policy creation? Photo:<a href="http://www.flickr.com/photos/nanpalmero/4278466639/sizes/m/in/photostream/">Nan Palermo (Flickr)</a>
Could an open source philosophy be the evolution of policy creation? Photo:Nan Palermo (Flickr)

Hey Germany, let’s have coffee. The simple act of sharing best policy practices could help resuscitate the global economy. So why aren’t we doing it?

The private sector commonly exchanges best practices to create more effective and efficient business models. The public sector could stand to learn a thing or two. Leaders and policymakers need to extend their hand across borders to learn from the success of countries beyond their trade routes.

For instance, the German labor market has not suffered nearly as much as the U.S. during the recession. Brookings Institute Fellow Elisabeth Jacobs provides an underlying reason: they take a long-term approach to labor policy by building (and budgeting) a sort of “what-if” scenario directly into their policy.

By weighing the cost of employee retention against layoffs, they opt to keep workers but trim hours. Once the local economy improves, they ramp up accordingly. Combined with short-term compensation, German companies can mitigate both salary and job loss. How might a similar model work in the United States, England, or Greece?

While not all policies could work seamlessly across hemispheres, many could lay the foundation for localized discussion. Once customized, implementation can begin. Think of it as open-source policy creation. Developing countries could benefit from such collaboration, with the reciprocal also true. Take innovations in Curitiba, Brazil. They created a recycling system that also addressed poverty by exchanging transit tickets for waste, serving as an incentive for citizens to clean up. Could a similar policy-driven incentive also work in urban centers in Sub-Saharan Africa or India?

The ideas are out there. We just need to find them. Instead of traditional foreign policy ambassadors that focus on trade, resources or aid, why not have an official collaborator that seeks to learn, share, and then implement best policy practices?

After all, what good is knowledge if you don’t do anything with it?

As Portugal eyes Brazil's wealth, will the colonial winds reverse?

Young Portuguese congregate in a park in Lisbon. Photo: Erik Mandell for MercyCorps
Young Portuguese congregate in a park in Lisbon. Photo: Erik Mandell for MercyCorps

Amid its ongoing financial crisis, Portugal’s prime minister has a surprising message for his country’s struggling residents: leave.

It’s just one example of Portugal looking to emerging markets for relief as power dynamics of international economic relationships change.

Conservative Prime Minister Pedro Passos Coelho suggested that moving to Portuguese-speaking countries and former colonies such as Brazil and Angola could be an alternative for young Portuguese hit hard by unemployment, according to IPS news. Coelho’s suggestion specifically focused on teachers, saying that other places could provide better job markets for educators. But the Prime Minister’s suggestion is being met with criticism, including from the governments of his imagined receiving countries for Portuguese emigrants.

Brazil and Angola both shot down this suggestion quickly, stating that they had no need for teachers from Portugal, IPS reports. Ana Maria Gomes, a leader of Portugal’s opposition Socialist Party, also criticized Coelho, saying "that is the last thing a prime minister should say... because no matter how complicated things are, we can and must pull out of this.”

Yet given recent economic trends, it makes sense that a struggling European country like Portugal might consider unorthodox solutions.

Brazil, the world’s largest Portuguese-speaking country, recently surpassed Great Britain to become the world’s sixth largest economy, reports The Guardian. Douglas McWilliams, chief executive of the Centre for Economics and Business Research (CEBR) described Brazil’s economic rise as part of a larger trend. He told The Guardian that "Brazil has beaten the European countries at soccer for a long time, but beating them at economics is a new phenomenon. Our world economic league table shows how the economic map is changing, with Asian countries and commodity-producing economies climbing up the league while we in Europe fall back."

This global shift of economic power, evident in Brazil’s rapid growth, is seen elsewhere as well. The emerging power of the so-called BRIC economies (Brazil, Russia, India and China) has been widely recognized for a while now, with trade in manufactured and resource-based commodities fueling the rapid growth. And the global financial and Euro-zone crises have accelerated the divide in growth between emerging economies and traditional economic powers.

Including the BRIC countries, 19 of the 30 predicted largest economies by 2050 are currently emerging markets, according to HSBC. And Project Syndicate reports that changing patterns of innovation and research and development will further fuel this shift, pointing out that in 2000 so-called developed countries only accounted for 76 percent of global R&D, down from 95 percent in 1990.

News of the rise of emerging economies isn’t new, but these figures pose a problem for struggling countries like Portugal. And the trend of turning to emerging countries for financial assistance signals a rebalancing of power likely to last.

Coehlo’s suggestion for emigration coincides with news that the Chinese state-owned Three Gorges Corporation bought 21 percent of Portugal’s largest power producer from the debt-burdened government, reports the Christian Science Monitor. The largest-ever Chinese investment in Europe further illustrates Portugal’s precarious situation. As another Chinese state-owned enterprise, China State Grid Corporation, bids on purchasing Lisbon’s national power grid operator, Portugal shows its willingness to sell assets to emerging economies to stay afloat.

“The European economy needs blood, but not in the form of a transfusion,” said Wang Yiming, a senior Chinese economic policymaker. “We need to create new blood by promoting investment.” In other words, China doesn't want to simply loan cash to the West. But it’s willing to invest in concrete assets.

Wang’s statement demonstrates China’s view of itself as an economic savior. If troubled countries have assets to sell, emerging economies are willing and able to buy.

So China is buying shares of Portugal’s utilities, and Brazil doesn’t want its unemployed emigrants. The Portuguese example shows that emerging economies now have more choices when it comes to global economic relationships.

Five hundred years after Portuguese landed in Brazil, have the colonial winds reversed? Maybe not entirely, but emerging economies now have a comparatively better hand to play. And for countries like Portugal, the game of economic power is no longer stacked so strongly in their favor.

Erik Mandell is a graduate of Middlebury College in Vermont. He is currently pursuing a master's degree in public administration and global leadership at Portland State. Read his other contributions to Global Envision.

Birth kits: An immediate solution to lowering maternal deaths

57 million women give birth each year without the help of a trained professional. Photo: <a href="http://www.flickr.com/photos/7203470@N03/2366525625/">hugrakka(Flicker)</a>
57 million women give birth each year without the help of a trained professional. Photo: hugrakka(Flicker)

Bringing one life into the world shouldn't mean sacrificing another. While the developing world scrambles to secure funding for midwifery services, there's a cheap, short-term solution: birth kits.

The risk of death due to pregnancy or childbirth is 1 in 8,000 in developed countries, as opposed to 1 in 17 in developing countries, according to the organization Unite For Sight. Yearly, approximately 57 million women give birth in their home without the help of a trained professional, increasing the risk of complications.

Midwives are an essential player in lowering maternal deaths. "Midwives can save women's and newborns' lives if they are properly trained and equipped, and if a support network is available," writes the World Health Organization. Worldwide, the WHO estimates, there is a shortage of 350,000 midwives. But training 350,000 new midwives won't happen overnight. In the meantime, birth kits could fill the gap.

Birth kits provide the tools for a safer and sanitary delivery, including soap to wash hands, razors and ties for the umbilical cord, plastic sheets for a clean surface, and an instruction sheet.

The impact of birth kits can be life-saving but their success depends on acceptability within the community where it is introduced. At times, modifications might be needed such as redesigning the instruction sheet to use images instead of words, considering low literacy rates. PATH, an international organization which focuses on global health and well-being, has produced kits used in Bangladesh, Egypt and Nepal. Cutting the umbilical cord on a coin is considered good luck in Nepal. To adhere to traditional customs, PATH created a kit that includes a plastic rupee.

Another common problem: Cutting the umbilical cord with unsanitary, used razor blades. Disposable razor blades or an illustrated instruction sheet encouraging woman and midwives to sterilize reusable blades after every use could reduce this problem. The Janma clean delivery birthing kit by AYZH is making modifications to its current scalpel handle design to discourage reuse.

Though midwives are the ideal choice for safe births, families can't always afford their services. Government and non-profit programs that subsidize midwifery programs aren't economically sustainable in the long run. A model pursued by the Midwifery Association of Pakistan involves changing public perceptions of the midwife's role in health care, advocates for government-set standards for midwifery education, and lobbies for professional rights.

Until midwifery is economically viable and publicly understood, we need an affordable stop-gap solution to save lives. Maternal mortality will continue to rise if birth kits—and, eventually, midwifery services—aren’t accessible to the women who need them now.

China's rise, the hidden mom economy, and soda-bottle light bulbs: our top 5 stories of 2011

A foreign domestic worker looks after her elderly client. Photo: <a href="http://www.flickr.com/photos/wongjunhao/5427024831/">Jerry Wong (flickr)</a>
A foreign domestic worker looks after her elderly client. Photo: Jerry Wong (flickr)

From low-tech light bulbs in the Philippines to microfinance in Nicaragua, our team of young writers covered lots of ground this year.

Here's a rewind on the themes that struck the strongest chords with readers, and the money quote from each piece. As we head into 2012, odds are that these big ideas will keep resonating.

Lack of electricity is a huge barrier to overcoming poverty by
Megan Kelly, Feb. 10:

As long as those hundreds of millions remain in the dark, they will remain poor," and yet bringing electricity to areas that have none lacks global funding and attention. It's not even part of the Millennium Development Goals.

Megan made a sweeping case for attention to energy poverty, a theme we've continued to cover.

Microfinance isn't a magic bullet by Laura Mortara, Jan. 24:

And any situation involving loan and credit is dangerous, especially when people are allowed to borrow irresponsibly. The failure of microfinance in India is largely due in part to MFI's shifting their focus from non-profit to profit-making industries and the corruption that follows thereafter. In addition to this, microfinance in India expanded way too quickly without the experience or infrastructure to support it.

Laura rounded up the previous year's run of bad news about the microfinance sector with a wealth of links to the best coverage.

Used soda bottles light up the world, for free by Brynn Opsahl, Aug. 18:

A used plastic bottle filled with water and a touch of bleach is placed in a hole of a tin roof. For up to five years, 50 watts of light fill up the once-gloomy windowless shack any time the sun is out

Brynn's look at this shockingly simple, effective idea was one of several articles to land in the Christian Science Monitor as part of a partnership we forged with them this year.

Does China's rise mean U.S. decline? by Chris Sharp, Feb. 4:

According to a recent poll by the Pew Research Center, 44 percent of Americans believe China is already the world’s top economic power, compared to 27 percent who think it’s the U.S.

Chris's piece rebutted the popular cliche about China's looming global power, drawing on a post by Foreign Policy's Daniel Drezner to argue that the U.S.-China relationship is about interdependence, not domination.

The female remittance economy: A hidden global network of mothers and money by Eliza Slater, May 11:

Remittances are a significant part of an unofficial global aid network, worth $325 billion last year. That’s three times the size of official foreign development aid spending.

Eliza zoomed into the human scale of some staggering numbers, showing how shipping cash to one's relatives abroad has become, among other things, an important part of modern femininity around the world.

As we mentioned last week, Global Envision is planning some big new initiatives in 2012. Stay tuned—we're looking forward to talking with you about whatever comes next.

As international aid patterns shift, microfinance picks up the slack

Critics say developed countries have broken promises for international aid. Photo: <a href="http://www.flickr.com/photos/dfid/5491899695/">UK Department for International Development (flickr)</a>
Critics say developed countries have broken promises for international aid. Photo: UK Department for International Development (flickr)

With cause for concern about the future of international aid amid the financial crisis faced by rich countries, some developing nations find microfinance playing an increasing role in fueling local growth.

At last week's 4th High Level Forum on Aid Effectiveness in Busan, South Korea, powerful advocates including U.S. Secretary of State Hillary Clinton and U.N. Secretary-General Ban Ki-moon pressed for continued financial assistance from rich countries and better transparency for aid programs, according to the Washington Post.

But is "continued assistance" enough? Is it the kind of assistance that will lead to actual change? The European head of Oxfam International says the EU failed to take a leadership role at the summit, despite previous promises of aid allocation. Natalia Alonso says “donors are not on track to meet the Millennium Development Goals. In 2000, all rich countries recommitted to spend 0.7 percent of their national income as overseas aid by 2015, but a number of EU governments, such as Italy and Germany, are pretty far from this.” Oxfam found that amid the economic crisis, EU overall aid last year was just 0.43 percent of income, leaving a $65 billion shortfall to 56 poor countries.

It may signal more trouble for traditional international aid, the flow of cash or food aid transfers from richer to poorer countries. The economic crisis and criticisms of the summit leave the trajectory of aid in question.

As the world's wealth shifts to developing nations, some Western leaders want to be sure their aid is paying off. Former British Prime Minister Tony Blair wrote in a Washington Post opinion piece that “leaders of emerging economies must ensure that they are able to attract high-quality, sustainable investment.”

World Bank president Robert B. Zoellick also points to this shifting paradigm, stating that “the time has come to envision a world “beyond aid” – a world where the shift is from the paradigm of charity to one of mutual economic benefit.”

One way in which some developing countries are expanding local markets in the era of questionable international aid is through successful microfinance programs. While the long-term solvency of some forms of microfinance are in question, other examples point to successes engineered by both developing countries’ governments and private local banks.

Government funded cash-transfer programs in Mexico and Brazil have been recognized as quite effective at reducing poverty and spurring local market growth, The New York Times reports. These programs provide small infusions of capital to low-income residents for both entrepreneurial and cost-of-living expenses, feeding local economies. Indonesia’s state-owned Bank Rakyat has successfully demonstrated similar results in recent years through a mixed savings-credit model, according to Elisabeth Rhyne in her article, “Five countries where microfinance works,” for China Daily.

Rhyne also highlights Bolivia’s BancoSol, a for-profit bank dedicated to serving the poor that operates within a strict regulatory framework. Competition among similarly modeled microfinance banks has spurred growth with low interest rates in Bolivia. Cambodia and Mongolia are two countries where replication of the Bolivia model has allowed microfinance banks to be “market leaders and innovators,” according to Rhyne.

In Columbia, where 96 percent of businesses are small, demand for microfinance has grown fast in the years of the global financial crisis, according to IPS news. Microfinance in Columbia “grew at a steady rate of 15 percent between 2007 and 2010," states a Visión Económica study. Small companies fuel demand for microfinance because "they generally do not meet the requirements set by commercial banks,” Jorge Varón, the manager of the development credit fund of the Colombians Supporting Colombians (CAC) programme, told IPS. And in a country with so many small businesses fueling market growth, this is a divergent route from typical aid pathways.

The financial crisis hasn't killed international aid. But it has people talking about what's next. Microfinance looks like a big part of the answer.

Erik Mandell is a graduate of Middlebury College in Vermont. He is currently pursuing a master's degree in public administration and global leadership at Portland State. Read his other contributions to Global Envision.

‘Economy of resourcefulness’ breeds prosperity worldwide: informal economy goes global

An informal worker sells mobile phones from a street stand. Photo: <a href="http://www.flickr.com/photos/blyth/152662056/sizes/m/in/photostream/">MikeBlyth (Flickr)</a>
An informal worker sells mobile phones from a street stand. Photo: MikeBlyth (Flickr)

A man selling toys on Sao Paulo’s streets, a woman grilling fish in crowded markets of Lagos and a handbag maker in Guangzhou might not seem to have much in common. But they are all part of the global informal economy, now estimated to be worth about $10 trillion a year.

Economic exchanges that are not taxed, monitored, or included in GDP measurements make up the informal sector. According to the Organization for Economic Cooperation and Development, more than half the workers in the world make their living this way.

Journalist Robert Neuwirth details the lives and challenges of informal workers in his new book, Stealth of Nations. Speaking of the $10 trillion estimate, Neuwirth says "That's an astounding figure because what it means, basically, is that if the informal economy was combined in one country, it would be the second-largest economy on Earth, rivaling the United States economy."

With innovative relationships and global supply chains, many entrepreneurs are thriving and prefer to stay ‘off the books.’ In Lagos, Nigeria, where 80 percent of the workforce is employed informally, locals call it the ‘economy of resourcefulness’. Street vendors grill fish caught in Europe and sell mobile phones smuggled from China.

Some entrepreneurs earn enough to travel out of Nigeria to purchase products to sell back home. "When you journey to the train station [in Guangzhou, China], you feel like you're in Africa because there's so many Africans located there,” Neuwirth says. “Africans have embedded themselves in society there in very direct ways, and there's a huge [informal] back channel of trade in China and Africa.”

The global scope of the informal economy is staggering. Governments and corporations are noticing traditionally ignored channels for revenue production. A market court in Lagos allows for the settlement of disputes between informal sellers and buyers. And, writes Marc Levinson in his review of Neuwirth's book in The Wall Street Journal, "In Morocco, the consumer-goods giant Procter & Gamble has built an entire network of wholesalers and agents and subagents to sell diapers and soap through merchants in villages so remote that they have no retail stores." Such relationships could indicate a trend in bridging the divide between formal and informal economies.

As informal workers integrate their business globally, many are torn between a desire for added security of infrastructure and support, and the solutions they’ve established. Certainly not all aspire to move into the formal sector with its complications of taxation and regulation.

With such a large magnitude, it’s impossible to ignore the importance of informal exchanges to society's economic survival. Workers continue to forge paths to prosperity through entrepreneurial solutions. For many, that means operating outside the law.

Erik Mandell is a graduate of Middlebury College in Vermont. He is currently pursuing a master's degree in public administration and global leadership at Portland State. Read his other contributions to Global Envision.

The politics of hunger: Good governance effective at fighting malnutrition

Much needed food aid being distributed in Sukkur, Pakistan. Photo: <a href= "http://www.flickr.com/photos/14214150@N02/4973650367/"> Rob Holden, UK Department for International Development (Flickr)</a>
Much needed food aid being distributed in Sukkur, Pakistan. Photo: Rob Holden, UK Department for International Development (Flickr)

Malnutrition, which prevents children from reaching their physical and intellectual potential, is falling. The most significant cause? It's becoming a politically important issue in its own right.

Today, 925 million people do not have enough to eat. About 98 percent of those people live in developing countries and 60 percent are women. In sub-Saharan Africa, one third of all child deaths are caused by hunger.

But these rates are lower than they have been in the past. In Brazil and Peru, malnourishment in some regions has been nearly eradicated. A likely cause for these improvements is economic development: as economies grow, people should have more money for food.

But a recent study found no such correlation in many parts of the world. In Peru, a mining boom occurred that boosted the incomes of certain regions. But these regions were not those that saw the most dramatic drop in malnutrition rates. In Southeast Asia, where economies have been growing rapidly, hunger rates have not seen a corresponding drop. As the World Bank’s chief economist for South Asia describes it, "For a region that's clocked something like 6 percent growth on average over the past decade, the statistics on malnutrition are just truly astonishing and unacceptable.”

Growth hasn’t exactly led to glut for much of the developing world. But many regions have seen a sharp decline in hunger rates.

Children in Haiti waiting for food and school supplies to be distributed. Photo: <a href= "http://www.flickr.com/photos/un_photo/5686946857/in/photostream/">UN Photo/Marco Dormino (flickr)</a>
Children in Haiti waiting for food and school supplies to be distributed. Photo: UN Photo/Marco Dormino (flickr)

What caused the plummet? Proactive politicians. Increasingly, politicians are seeing tackling malnutrition as a means of getting elected. The humanitarian news and analysis service IRIN reports that malnutrition has been a neglected issue in the politics of many developing countries. One researcher from the Institute for Development Studies recalls being told by Indian journalists that hunger was a difficult issue to get past editors “because it’s not an election issue.” Looking at the figures for global poverty, it is easy to note that the world’s poorest tend to be the most politically neglected. This may be changing.

The study attributes this attitude shift to civil society networks that are getting better at lobbying governments, and to governments that are themselves becoming more responsive amid democratization of the developing world. According to the World Health Organization, “disparities in health outcomes between the poor and the rich are increasingly attracting attention from researchers and policy-makers, thereby fostering a substantial growth in the literature on health equity.” More attention has led to more action in many parts of the world.

Former Peruvian president Alan Garcia was elected on his “5x5x5” campaign, which pledged to reduce malnutrition for children under age 5 by 5 percent in 5 years. After his election proved it to be a popular issue, he raised the figure to 9 percent.

Some leaders learn the hard way that hunger is something to be taken seriously. In Niger, former president Mamadou Tandja all but banned the subject of hunger from the press. A growing hunger crisis led to his ouster in a military coup. Knowing that its power rested on a promise to provide food, the interim government acted quickly to coordinate relief efforts.

For most countries that have reduced malnutrition, success came after national governments began coordinating and implementing broad anti-poverty campaigns. In Malawi, the federal government began coordinating its own programs with those of non-profits operating in the country to increase efficiency and monitor what worked and what didn’t. Cash transfer programs that were established to incentivize behavior in the community best pulled people out of poverty. While international groups have been doing good work in Malawi for quite some time, it was the government’s engagement of the issue that proved crucial to increasing efficiency and providing real results. “The government’s remarkable engagement and leadership on fighting hunger and undernutrition cannot be overstated,” according to reports from Tripode Proyectos, the research group that conducted the study.

So malnutrition is being elevated in importance around the world. But it is still a huge problem. In Asia, Latin America, and Africa, despite recent improvements, malnutrition remains a leading cause of death for children. As many developing countries head for economic growth, this study should remind us that bigger GDP does not always mean healthier people. But prosperity should mean more money and resources to fight hunger, and politicians are learning that healthy voters are more likely to be happy voters.

According to one Peruvian governor, “In the past, politicians didn’t care about issues like nutrition, because children don’t vote. But now they have realized that their mothers do.”

Ben Osborn is a 2011 graduate of Lewis & Clark College in Portland, Oregon. Read his other contributions to Global Envision.

Space: The economic development frontier

Developing countries are determined to foster stronger domestic science communities. Photo:<a href="http://www.flickr.com/photos/nasacommons/4857944215/">NASA (flickr)</a>
Developing countries are determined to foster stronger domestic science communities. Photo:NASA (flickr)

Developing countries are shooting for the moon.

No longer willing to follow in the technological footsteps of developed nations, Fast Company reports, developing countries are launching significant space programs to subsidize and promote in-country technological innovation.

From Tanzania to Brazil, governments of developing countries are investing billions into building domestic science institutions, as well as funding science and technology scholarships. The aim is to form cohesive space programs of their own without relying on the previous accomplishments of Western nations. On they way, they'll foster a stronger homegrown science community while strengthening education and promoting industry.

But most importantly, says José Goldemberg, a professor at the University of Saõ Paulo, this fledgling investment is an effort to “adapt and develop technologies appropriate to our local circumstances." Some developing countries are pioneering their own paths, exploring technologies relevant to their countries' unique needs.

The programs focus on everything from energy and bio-engineering to environmental science and water resource management. Some, such as the Nelson Mandela African Institute of Science and Technology (which has institutions located in various locations across Sub-Saharan Africa), will begin to offer master's and Ph.D. degrees.

In April 2010, one of the more ambitious developing-world projects was established. Mexico’s Agencia Espacial Mexicana, working with 45 partner countries from around the world, launched the development of a space program with an agreement by all parties to share financial, scientific, and technological resources in their space exploration efforts.

Though the goal of space exploration may seem far-fetched for countries that often struggle with domestic and economic stability, the growth of national ideas and talent are essential to any nation's progress. Even if space exploration is not in the cards for these countries for many years to come, technology developed in the process could prove to be vital. NASA’s space research led not only to man's first steps on the moon, but provided the technology behind everyday-use inventions like ear thermometers and smoke detectors, long distance telecommunications and cordless devices.

Small steps in the development of domestic science and technology programs could lead to a giant leap for the future of a country. From advanced education and job creation to new technologies that simplify complex problems, these programs promise much for millions across the globe.

The history of the modern world, told with moving dots

If you are interested in the health of the world economy, it helps to know a bit about its history. But conceptualizing the global economy over long periods of time can be daunting. Until now.

Check out the above video, in which Hans Rosling plots the "wealth and health of nations" over the last 200 years. Then see his interactive website, gapminder.org, which lets you dig into his data yourself.

Used Soda Bottles Light Up the World, For Free

Water, a little bleach and a plastic bottle are all Filipino entrepreneur Illac Diaz needs to light up the world. He's out to make lighting free and safe, one slum at a time.

Until now, nearly three million people in the Philippines have gone without electricity, according to philstar.com. Those with access often use unsafe or illegal technology, creating disastrous effects. For example, 2,520 electricity-related fires were reported in 2009. In the Philippines, through the My Shelter Foundation, Diaz is implementing Solar Bottle Bulbs to diminish these problems. A used plastic bottle filled with water and a touch of bleach is placed in a hole of a tin roof. For up to five years, 50 watts of light fill up the once-gloomy windowless shack any time the sun is out, Diaz told Reuters in the video above.

Although WattWatt.com reports that the idea originally started with mechanic Alfredo Moser of Brazil, who used the creation locally, Diaz attempts to spread it worldwide. With an MIT student design, Diaz has brought the appropriate technology farther, with his two-hour seminar about the simple product. The invention is something that is so simple, cheap and sustainable that anyone can create it and maintain it themselves. As Diaz says, the three rules of appropriate technology are that people can find it, they can replicate it, and most importantly, they can make a business of it. Not only does the Solar Bottle Bulb bring free, sustainable lighting to places that haven't had it before, they also create a new market for people to install the bulb at small costs.

The only downfall of the Solar Bottle Bulb is that the idea only works during the day. But that hasn't stopped nearly 300 households, small businesses and schools in San Pedro, Philippines, from installing the Solar Bottle Bulbs.

Hangzhou, China Pedals to Number One in Bike Sharing

Washington, D.C.’s bike sharing program has 1,100 bikes. London’s system has 6,000. And Paris has more than 20,000.

But on the other side of the globe, Hangzhou, China has them beat with more than 60,000, according to a recent report by National Geographic.

To see how it all works, check out this short from Streetfilms:



Bike shares -- where a user can pick up a bicycle at one service point, ride it, and then drop it off at another and walk away -- are growing in popularity. China, along with many other developing nations, has a long-held cultural tie to bicycling. Demand for automobiles skyrocketed in recent decades, but in a city of 6.7 million like Hangzhou, it would be impossible to build enough roads to support this, not to mention environmental concerns.

Bike shares are cheap (nearly free for many in Hangzhou), highly accessible, and part of a sustainable urban growth model. Hangzhou hopes to expand its system to 120,000 bikes by 2020 and other cities are taking notice of its success. Companies in Beijing, Rio de Janeiro, and Mexico City are making a go of it and hope to remove the training wheels soon.

Africa May Become First BRIC Continent

Markets like these in Egypt bring in local as well as tourist business, helping to increase Egypt's overall economic strength. Photo: <a href="http://www.flickr.com/photos/9435171@N03/3424964240/sizes/m/in/photostream/">effeietsanders (Flickr)</a>
Markets like these in Egypt bring in local as well as tourist business, helping to increase Egypt's overall economic strength. Photo: effeietsanders (Flickr)

Though they are currently considered to be developing economies, the four BRIC countries — Brazil, Russia, India, and China — are expected to become economically dominant by the year 2050. Now, Jim O'Neill, the economist who coined the BRIC acronym, sees a new emerging power— but it's not a single nation. According to O'Neill, Africa, when taken as a whole, could become the next BRIC.

According to his article in Financial Times, when O'Neill began looking at Africa as a whole rather than as individual nations, he found an economy comparable in growth and potential with the BRICs. Today, Africa has a combined GDP larger than India's and on par with that of Brazil and Russia. If current estimates hold, the total GDP of the 11 largest African economies in 2050 looks as though it would "reach more than $13,000bn, making them bigger than either Brazil or Russia, although not China or India."

O'Neill believes that in particular Egypt and Nigeria are the two countries that have the individual strength to help Africa become a leading world economy. Both are included in O'Neill's group of' the 11 most up-and-coming economies and collectively, they provide almost half of the total African GDP. There is special potential for growth in Nigeria to contribute because almost 20 percent of Africa's population lives there.

While not populous enough to significantly influence continental GDP, South Africa also has a critical role to play. As one of the more developed countries in Africa, South Africa could serve as a connecting force between southern Africa and the strong economies of Egypt and Nigeria.

But in order for Africa to truly emerge as a BRIC, O'Neill acknowledges that reform is necessary. Egypt and Nigeria, as key players in the overall strength of Africa's economy, must take action to encourage business. Rather than promoting censorship, increasing transparency and education is a crucial first step to encouraging economic growth. Focusing on eradicating corruption, lowering national debt and stabilizing inflation are all key moves that must be made, particularly in these leading nations but across the continent, in order for Africa to truly achieve its potential.

Brazil Ramps Up Humanitarian Aid

Topics: Humanitarian Aid
Countries: Brazil
A representative from Brazil (right) signs an agreement with the World Bank detailing Brazil's contribution to reconstruction efforts in Haiti. Photo: <a href="http://www.flickr.com/photos/worldbank/4599782922/">World Bank Photo Collection (flickr)</a>
A representative from Brazil (right) signs an agreement with the World Bank detailing Brazil's contribution to reconstruction efforts in Haiti. Photo: World Bank Photo Collection (flickr)

Fiscal austerity may be forcing some countries to cut spending on foreign aid, but this isn’t the case everywhere. In fact, Brazil has actually tripled its official aid budget over the last two years, and according to the Guardian, the South American country is quickly becoming a leader in aid to the developing world.

Brazilian generosity is helping to offset falling donations from other countries, says The Economist. A study by Oxfam that appeared in Newsweek found that between 2008 and 2009, foreign aid from wealthy nations decreased by $3.5 billion. But a table in The Economist shows that through a combination of programs and loans to developing countries, Brazil’s 2010 contributions could total around $4 billion, though this figure includes involvement by private contractors.

And Brazil's status as a country that can empathize with developing nations gives it an advantage when designing aid programs. For example, The Economist points out that Brazil can help other countries design successful tropical agricultural programs because they've already done it themselves. The same goes for providing low-cost HIV/AIDS treatment or setting up cash transfer schemes that work.

Brazil tends to finance social programs or agriculture projects around the world, but Africa seems to be a particular focus. The Economist mentions Haiti as an example, where the Brazilian government runs a program that gives families free meals if they take their kids to school. In Angola, Brazilian contractors are building the water supply. And in Mali, Brazilian researchers run an experimental cotton farm. These efforts are even more remarkable when you consider that Brazil is still a recipient of international aid.

But if that's the case, should Brazil really be donating all this money? According to both The Economist and The Guardian, Brazil has actually benefited from increasing its foreign aid. The Guardian states that the economic ties Brazil has built with developing countries helped it escape the worst of the financial crisis, while The Economist suggests that foreign aid could boost Brazil's credibility with other nations.

But no matter what, Brazil's commitment to helping poor countries in the global south might pay big dividends in the future.

Industry and the Indigenous Pair Up for Profits

A man extracting latex from a rubber tree. Photo: <a href="http://www.flickr.com/photos/transworld/394662094/">Tran's World Productions (Flickr)</a>
A man extracting latex from a rubber tree. Photo: Tran's World Productions (Flickr)

The Rikbaktsa are an indigenous group who live in the Brazilian state of Mato Grosso. For seven decades they extracted latex from the jungle where they live. About 20 years ago the price of latex dropped, making latex extraction unprofitable. Without this industry, the Rikbaktsa were in trouble.

Since then, an unusual partnership with the tire company, Michelin has helped the Rikbaktsa revitalize latex extraction in their community. An article on the United Nations Development Program's website (UNDP) explains how this agreement has benefited both Michelin and the Rikbaksa. Carlos Castro, the head of the UNDP’s Brazilian environmental unit, writes about the partnership's benefits:

It’s a win-win situation. According to Michelin, the quality of these native trees’ latex is higher than the one extracted from the planted trees — even if in the same area. And this is all done in a way that promotes economic development, conserves natural genetic resources and protects the indigenous peoples’ cultural and social diversity.

This partnership promotes development by strengthening the local economy in Mato Grosso says the UNDP. Michelin buys latex from the Rikbaktsa at 30 percent above market value, which has helped families to increase their incomes from $460 to $860 per month. To ensure they're getting high-quality latex, Michelin provides materials, training, and storage facilities to the community. This training has helped locals become more proficient at extracting latex in addition to bringing more cash into the region.

This partnership has been favorable to the Rikbaktsa for social and cultural reasons as well. In addition to providing jobs, it allows them to manage their land while helping stem the exodus of youth leaving Mato Grosso in search of work.

Another positive aspect of this agreement is its environmental benefits. Deforestation from slash-and-burn farming and cattle ranching has devastated Brazil. The region of Mato Grosso has been especially hard hit. As the process of harvesting latex is similar to harvesting maple syrup it can done without without cutting down trees.

By successfully improving the economy, culture, and environment in Mato Grosso, this project shows that both industry and the indigenous can profit by working cooperatively.


Stories We're Watching

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India’s central bank and economic analysts predict that growth will fall sharply to 7 percent this fiscal year and remain sluggish.

Social responsibility and a new world order

Washington Post - Innovations - Tue, 02/07/2012 - 07:56
Just before the New Year, the London-based Center for Economics and Business Research announced that Brazil had overtaken the United Kingdom as the world’s sixth largest economy. Furthermore, it predicted that by 2020, India and Russia will also have overtaken all the European economic powers.

Aid for trade policy rears its ugly head

The Guardian's Poverty Matters - Mon, 02/06/2012 - 01:41
The UK government's dismay at not being granted the contract for Typhoon fighter jets in India is an indication that its controversial aid for trade policy is still very much alive.

Liberia's battle to put the lights back on

The Guardian's Poverty Matters - Sun, 02/05/2012 - 23:00
Ellen Johnson Sirleaf has set ambitious targets to restore the country's electricity supply. But will it meet them by 2015?

As Africa's consumers rise, so does inequality

Yale Global Online - Fri, 02/03/2012 - 10:17
Kenya struggles to spread the wealth from rapid growth.

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