With a shared currency, entrepreneurs like this Tanzanian vendor won't have to change money when selling their products in other countries. Photo: justCRONO (flickr).

Has the eurozone crisis made shared currencies passe? East African leaders don’t think so, and they’re looking to Europe for an example of what not to do.

Economic integration isn’t a new idea for the East African Community. Its five member states&mdashUganda, Kenya, Tanzania, Rwanda, and Burundi&mdashalready have free movement of goods and labor, thanks to a customs union and, since last year, a common market (a type of trade bloc). According to EAC Deputy Secretary General Dr. Enos Bukuku, a shared currency would build on this by controlling price instability and exchange rate volatility among the states, writes In2EastAfrica. He says this would encourage businesses to invest and spur development in the region.

An EAC monetary union could face many of the same problems Europe has already experienced. Critics point out that the five EAC states’ economies differ greatly in size and scope. Kenya’s GDP is $31,408,632,915, while Burundi, with a fifth of Kenya’s population, has a GDP of $1,610,544,922, according to the World Bank. This could mirror the dynamic between powerful European states like Germany and the EU’s smaller states like Greece, as Tanzanian IMF head John Wakeman-Linn told The Financial Times. But EAC Secretary-General Dr. Sezibera doesn’t think this will be an issue. “If you look at EAC trade statistics, all the partner states have gained. I do not think Kenya will swallow up the other countries; it will only enrich the economic base of the community,” he said in an interview with The East African.

To the citizens who will be affected by these changes, the European Union’s tribulations are probably either unknown or seemingly distant, but EAC leaders are paying attention and believe that they can avoid Europe’s mistakes. At a round of negotiations in Uganda earlier this month, Bukuku said "For the eurozone ... maybe there wasn't well coordinated fiscal policy management and enforcement. If there are benchmarks that are agreed upon, it would be expected that the community would also agree on sanctions and enforcement mechanisms," reports The Christian Science Monitor. He also cited the issue of fiscal discipline and said that many of Europe’s problems are a result of the eurozone countries not having “lived up to what was in the treaty.”

Economists like the World Bank’s Paul Collier warn that a currency union could hurt East African economies, according to allAfrica.com. Others feel it’s simply inappropriate in the current economic climate; The Financial Times cites shrinking regional growth and depreciating currencies as discouraging indicators. But Wakeman-Linn disagrees, telling the newspaper that even if a common currency isn’t feasible, putting the necessary components in place could help East Africa:

“All the things that they need to do to achieve a common currency – integrate financial markets, trade policy, labour markets, capital markets, statistics databases, develop easy mechanisms for exchanging each others’ currencies – all of these things would be extremely valuable and would help develop the regional economy, and so these are things they should do.”

By revealing the cracks in the world’s financial systems, the global financial crisis has provided developing nations with a handy "What not to do" guide. EAC leaders are strong in their belief that a shared currency is possible, even if there are challenges along the way. “The monetary union is a possibility, not a dream,” Dr. Sezibera told The Financial Times. They originally hoped to implement the currency union by next year, a deadline that has proven to be overly optimistic.

With the lessons they’re learned from the euro’s failures, they hope to avoid some of the bumps along the way.

Margo Conner is a senior at Lewis & Clark College in Portland, Oregon, majoring in international affairs. Read her other contributions to Global Envision.

Women farmers in Africa produce over 60 percent of all food crops. CIMMYT (flickr)

Women comprise 43 percent of the world’s farmers. In Africa, it’s 80 percent. Women plant, harvest, process and sell their crops, but men continue to dominate agricultural science and research. This may be about to change.

African Women in Agricultural Research and Development (AWARD) is trying to close the R&D gender gap. Their program fast-tracks female science careers in agriculture, empowering them to contribute more effectively to hunger and poverty alleviation in their own communities - a model that could be replicated internationally.

Although African women produce 60 to 80 percent of food crops, they receive significantly less (5% as of 2008) of the agricultural training and tools available to men, says the United Nations. A 2010-2011 research report by the United Nations Food and Agriculture Organization shows that women could produce 20-30 percent more if they had equal access. This creates a subsequent increase in household income, health, and community food supply. The East Africa Report emphasizes that research is also pivotal in fostering innovation. Without a seat at the table, women cannot influence practices. Who better to innovate than the farmers themselves?

Everybody poops. This fact has proved to be a large problem in terms of maintaining the world's sanitation. Recently, The Bill and Melinda Gates Foundation has turned it into something positive.

The foundation explains that 40 percent of the world's population has no contact with flush toilets. They are left to defecate in the open, bringing severe problems. For example, nearly 1.5 billion children die each year from diarrheal diseases.

On July 19, in Kigali, Rwanda, the foundation launched its new initiative to bring safe sanitation services to the world. Their plan begins with the toilet and $42 million to jump start the project. Sylvia Mathews Burwell, president of the foundation’s Global Development Program, explains that the toilet has been the best invention for the world's sanitation. The only problem is that it's not accessible enough for everyone. "We need to reinvent the toilet," she says.

Partnering with the U.S. Agency for International Development, the initiative will support the United Nations’ 2015 Millennium Development Goals with the Sanitation For All project, aiming to reduce the amount of people living without basic sanitation by 50 percent. Together, they will find ways to build hygienic, water conserving, and human waste recycling toilets that can be built and sustained at a low cost. One such initiative is the Reinventing the Toilet Challenge, where Universities around the world race to develop a toilet without pipes, sewer connection or electricity for less than 5 cents a day.

With a reinvented toilet, the possibilities are endless. It will reduce exposure to disease and keep kids in school — ultimately boosting local economies with healthier workers and much lower health care costs. The human waste can become fertilizer and fuel for local communities, and even fresh drinking water. The Reinventing the Toilet Challenge is showing us that human waste really isn’t waste at all.

New organization Solar Sister is empowering women in rural Africa to star their own solar lamp businesses. Photo: IvanClow (flickr)

A new organization seeks to light up the night in rural Africa by putting a twist on an all-American idea: the Avon lady.

Night in rural Africa is a night much darker than that to which the developed world is accustomed, as many communities lack electricity. In rural Uganda, the number is as high as 95 percent, as Katherine Lucey told Dowser.org. Without electric light, people must rely upon kerosene lamps, which are expensive and belch toxic fumes.

These create a bevy of problems, especially for women. Girls are often expected to help with chores when they return home from school and don’t have time to do homework until after dark. Either they sit inhaling fumes and burning up cash with the family’s kerosene lamp, or in many cases, they simply don’t study at all. Solar lamps solve this problem by extending the work day.

For years, Africans have had a big problem with solar power: it breaks. In an interview with Dowser.org, Solar Sister founder, Katherine Lucey, said that in her previous work with a nonprofit, the solar systems they installed in rural areas had a 50 percent rate of failure after just one year. Traditional solar power can be a hard sell for poor communities — it saves money in the long run, but it's pricey at first, and many solar panels often fall apart over time due to improper maintenance. The new lamps that Solar Sister uses are small, portable, and don’t require technological know-how to use — you simply place the lamp outside during the day, it absorbs the sun’s rays, and when night falls you turn it on.

Solar Sister uses a microconsignment model, meaning that its entrepreneurs don’t pay for their lamps until they actually sell them. If they can’t sell the lamps or decide they don’t want to, they can return them to the organization without loosing any money. It’s a low-risk endeavor that has so far empowered 107 women in Uganda, Ghana, and Sudan. Normally, these women wouldn’t have had enough money to create a business.

The lamps range from $15 to $50 at first, a large investment for most families. But, an average family spends about $2 a week on kerosene, so a family could save up to $85 a year just by buying a lamp, says TriplePundit. Solar Sister estimates that its entrepreneurs can actually double their households’ incomes while decreasing their household expenses by 30 percent. Some of the lamps can even act as cell-phone chargers. Not only can women with these lamps charge their own family’s phones; they often bring in extra money by charging neighbors’ phones. Otherwise, they’re left to travel to nearby cities whenever a phone goes dead.

The women who participate in Solar Sister can seem pretty ecstatic about their new businesses, as you can see in this clip below of Viola, one of the women selling solar lamps in eastern Uganda.

Solar Sister currently operates in Uganda, Rwanda, and South Sudan, and hopes to shine a light on other parts of Africa soon.

African leaders discuss the state of the African economy at the 2010 IMF/World Bank Spring Meetings. Photo: International Monetary Fund (flickr)

The Economist

The Economist

Since 2001, the budding economies of the BRICS (Brazil, Russia, India, China and South Africa) have dominated global financial headlines. But looking back, it turns out some of the so-called “African lion” economies (Angola, Nigeria, Ethiopia, Chad, Mozambique and Rwanda) were just as fierce.

Six of the 10 fastest-growing economies in the world hail from the “forgotten continent” of Africa — putting up annual average GDP growth rates of around 8 percent or more from 2001-2010. The monumental rates have even earned these sprinters a spot next to “Asia's tigers” of the 1980 and 1990s — Making Africa one of the fastest growing regions in the world, according to The Economist.

Over the past decade, sub-Saharan Africa’s real GDP growth rate jumped to an annual average of 5.7%, up from only 2.4% over the previous two decades. That beat Latin America’s 3.3%, but not emerging Asia’s 7.9%. Asia’s stunning performance largely reflects the vast weight of China and India; most economies saw much slower growth, such as 4% in South Korea and Taiwan. The simple unweighted average of countries’ growth rates was virtually identical in Africa and Asia.

That said, in the next five years Africa is set to take the top spot from Asia as the fastest-growing region in the world, writes The Economist. "Standard Chartered forecasts that Africa’s economy will grow at an average annual rate of 7 percent over the next 20 years, slightly faster than China’s."

Ironically, much of Africa's growth can be attributed to China's investment and demand for raw materials in the region. And more recently, another of the BRICS, Brazil, has been competing for assets in Africa, writes Fast Company.

The Economist also notes growing success in Africa's manufacturing sector, which Standard Chartered predicts will become "significant."

Even with challenges such as political instability, corruption and weak rule of law, the African lions have been able to compete with the economic prowess of the Asian tigers.

But before Africa's growling economies can dream of surpassing Asia's roaring ones, those structural problems will have to be fixed.

"Without reforms," The Economist says, "Africa will not be able to sustain faster growth."

Most Rwandans now have access to basic health insurance. Photo: Paul Evans (Flickr)

Rwandan Sunny Ntayomba marveled when he met a U.S. student and learned that many Americans lack heath insurance. Rwanda, one of the world’s poorest countries, insures 92 percent of its population thanks to a new government program described by the New York Times.

Health insurance has bettered Rwandans’ prospects for economic development by providing a safety net against unexpected medical bills. This fallback is a small but important guarantee while Rwanda's poor climb up the economic ladder out of poverty.

This guarantee is more important than you might imagine, according to several World Bank surveys, which indicate that improving health could be a key catalyst for reducing poverty. In one study, Dying for Change, interviewees identified illness as the most common cause of poverty — even more important than losing their job. In another, interviewees reported that poor health and an inability to access medical care perpetuated their poverty.

The program makes insurance available for a mere $2 a year, reports the New York Times. While this price is still steep for the truly indigent, for most it’s a steal. The annual premium is less than it would cost to seek treatment for diarrhea, pneumonia, malaria, malnutrition, or an infected cut.

The insurance plan covers these ailments but little else because the government has purposefully prioritized affordability. This strategy has worked well. Life expectancy has risen from 48 to 52 despite the country’s ongoing AIDS epidemic writes the Times. If only rich Rwandans could afford to join, it's likely this leap wouldn't have been possible.

This pioneering program is impressive as it serves the poor while improving their prospects of shaking off poverty. But the program’s success is far from certain as it relies on a sustained government commitment and inflows of foreign aid.

Still, in spite of the program's shaky prospects, this African nation deserves a nod for an accomplishment that has eluded much richer states.

OLPC instructors teach students how to use their laptops in Kigali, Rwanda. Photo: cellanr (flckr)

Rwanda's President Paul Kagame wants to secure a piece of the growing technology market that has already brought so much change to sub-Saharan Africa, and he’s starting young.

Kagame recently announced that he would provide a laptop for every child in his country between the ages of six and 18, reports The Economist. The magazine suggests the move is based on both economic as well as educational motives: The President has made it clear that he intends to have 50,000 computer programmers by 2020 as a result of the laptop program.

To reach that goal, he is working with the American non-profit One Laptop per Child (OLPC), an organization that is the first of its kind to provide durable and affordable laptops to many in the developing world. According to their website they believe (as I do) that a laptop can be a key for children to engage in their own education more fully than traditional rote learning. OLPC claims their laptops offer a way for the user to connect with both their local and greater communities in order to expose them to a world that is often not available.

The more practical economic benefits of such a program are also apparent. The president has already purchased 100,000 laptops from OLPC, according to the Economist, and plans to buy 1.2 million more as early as 2012. Over the long term, the initiative will create more jobs for computer teachers and repairmen.
And Government agencies and businesspeople have already started programs to help educate a computer-savvy population reports The New Times of Kigali.

Understandably, the plan has been criticized by many who think the money would be better spent on more visible and perhaps more necessary projects for the impoverished nation, including food distribution, health care subsidies and infrastructure development. Although the country must never lose focus on these persistent problems, there must also be room for the Rwandan Government to take risks on other fronts. The overall benefits of education are difficult to quantify but are nevertheless unquestionably valuable. Technology markets are on the rise throughout Africa, and President Kagame doesn't seem to want to let this opportunity pass.

Glasses are one key to improving the economic productivity of poor people in developing countries. Photo: deepchi1 (flickr)

Poor vision may not seem like an economic problem at first glance. But according to the World Health Organization, workers with poor and uncorrected vision cost the global economy hundreds of billions of dollars in lost productivity each year.

Many of these workers struggle to put food on the table, much less purchase an expensive pair of glasses, so their vision problems go untreated. This situation may change thanks to an innovative new series of affordable glasses designs that the New York Times recently highlighted. Their genius lies in two factors: their low cost and how easy it is to adjust them. Production is cheaper when a single model can be made to fit almost anyone, which also cuts out the need for expensive doctors to write vision prescriptions.

How can glasses be one-size-fits-all? One type highlighted by The Times has lenses whose refraction can be adjusted by injecting a clear liquid into them, while another has overlapping lenses that can be adjusted by the user. These models are already improving the lives of wearers in countries like Rwanda, Afghanistan, Ghana, and Tanzania and cost $19 and $4, respectively.

Despite their potential, low-cost eyeglasses still face problems. As The New York Times explains, the glasses could cost only $1-2 per pair if produced in great enough volumes, but supply chains don't yet exist to distribute such quantities of glasses to those who need them.

The field of low-cost eyeglass production and distribution is in its infancy, but keep your eyes open for great things to come.

It's hard enough to keep a business afloat these days, much less develop a hit product for one of the largest department store chains in the U.S. But that's exactly what the women of Rwanda are doing with a basket weaving business whose end product is sold in Macy's, reports CBS news.

It certainly isn't your average African aid project. When Terry J. Lundgren, Chairman and CEO of Macy's, first heard about the project from American founder Willa Shalit, he expected to see a charity. What he got instead was a proposal.

"I was prepared to make a donation," he said. "And [Shalit] said, 'no no. We don't want a donation, we want a business.'"

It's precisely this business aspect that makes the project sustainable. Last year, the women sold 40,000 baskets in the U.S., and their income is double the Rwandan national average. (View a photo essay about the weaving process here).

You can learn more about these inspiring women in this video:

Watch CBS News Videos Online

Adolescent girls in developing countries miss up to 50 days of school each year because their families can't afford to buy them sanitary pads.

Fortunately, a start-up called Sustainable Health Enterprises (or the cleverly abbreviated SHE) is working to reverse this trend by helping Rwandan women start their own low-cost sanitary pad businesses. SHE is helping girls stay in school and increasing their potential earning power in the process. One additional year of primary school for a girl means a 10-20 percent increase in her future wages, according to a Council on Foreign Relations study.

This short, eye-catching video explains why SHE is doing the work that it does... The music's great, too.

Plumpy’nut is frequently used by humanitarian agencies in emergency malnutrition situations. Photo: Thatcher Cook for Mercy Corps

Humanitarian agencies have long been using protein and energy bars filled with nutrients and vitamins when responding to food emergencies. Though these "ready-to-use foods" are seen everywhere on grocery shelves in the West, they're often viewed as lifesavers when food crises strike the developing world.

BBC News recently highlighted the efforts of two British doctors, Steve Collins and Alistair Hallam, who saw the great results these easily accessible foods can have on malnourished populations. The doctors have taken the idea of ready-to-use foods even further with their company, Valid Nutrition, which manufactures foods supplemented with important nutrients found in meat and vegetables — foods most Africans can’t afford. While majority of emergency food packets contain high sugar concentrations and supplements that help in emergency relief areas, Valid Nutrition's products contain nutrients that are important in a person's daily diet and are sold at an affordable price. The company has opened manufacturing factories in various African countries, creating jobs for locals and helping the economy by using local crops.

Instead of only using these foods during emergency relief situations, the doctors want to help treat severe acute malnutrition, where a person's weight for height measurement is 70 percent below the median range due to food shortage and/or illness, according to the World Health Organization.

"The idea is to target people suffering from a less acute, but more widespread form of malnutrition that affects a staggering two billion people worldwide," reports BBC News.

Fortification of food for the developing world is not a new idea. Other companies such as Global Alliance for Improved Nutrition, a Swiss nonprofit, has programs in various developing countries providing food for the poor. In fact, Gain is trying to put more market pressure on firms to “develop new, affordable nutritious foods by convincing business it is missing a vast untapped market.”

"Peace from Rwanda." Photo: courtesy of Adam Bacher

Rwanda, 1994: Hundreds of thousands of people, mostly members of the Tutsi minority, are slaughtered by their ethnic Hutu neighbors in one of the worst genocides of the 20th century.

Today, the words "Hutu" and "Tutsi," once ripe with divisiveness and hatred, are no longer spoken on the streets of Rwanda. Reconciliation efforts have led perpetrators and survivors to work together to rebuild their common livelihoods.

Photographer Adam Bacher is documenting the efforts of this New Rwanda, giving readers of his blog a reason to be hopeful about the country's future. He provides a sweeping visual tour of reconciliation efforts, from a progressive rehabilitation center for former child soldiers, to a community-service program for former prisoners who rebuild the homes of survivors. He also documents programs meant to empower victims and rebuild the Rwandan economy. He visits a community-driven hospital construction project for infectious disease patients, and follows a non-profit that teaches vocational micro-business skills to children orphaned by the genocide.

The inspiration behind Bacher's work lies in the resilience of the Rwandan people:

Today Rwanda is an example of peace. The people have chosen not to allow themselves to become captive to decades of retributional killings. Distinctions between ethnic groups, political extremism, wide spread corruption, media manipulation, and other factors that led to the genocide have all but disappeared. Rwandans are working hard to reconcile their differences, and grow themselves out of poverty - toward peace and prosperity. They are an example to the world of what is possible.

Photo: hdod (flickr)

Chicken giant Tyson Foods is helping Rwandan women raise their own chickens as part of the ambitious UN-sponsored Millennium Project to combat world hunger, disease and poverty.

Rwanda is a place that needs help: Nearly half of children there suffer from chronic malnutrition, and two-thirds of its population lives below the poverty line, according to Food for the Hungry.

But you might ask what Tyson, an Arkansas-based company, is doing in the small African nation. Especially since it insists in a press release announcing the project that it has no plans for commercial chicken production in the country.

Tyson's philanthropic efforts, not surprisingly, focus on hunger relief — efforts accomplished mostly by giving away their own products. But on this project they've teamed up with the Millennium Project, led by prominent development economist Jeffrey Sachs.

Sachs visited Tyson headquarters earlier this week, where he told employees that hunger breeds instability — and how ending hunger is in our national-security interest.

"You cannot stabilize a hungry place," he said, "Troops can never do it. We need you, we need the ability to grow food, we need modern technology to be able to solve these problems."

Watch a few minutes of Sachs' speech here.

Malaria nets. Photo: Tomas de la Maza (flickr)

Is malaria's reign of terror coming to an end?

Every year, 500 million people fall seriously ill with malaria — a disease that induces fever, chills, nausea, flu-like illness and, without treatment, coma and death. More than 1 million people die each year from malaria — almost all in the developing world. The near-universal poverty of its victims is one reason it has not received the attention, and therefore the money, necessary to secure its demise.

Even in the face of these scary statistics, malaria may be about to meet it's match. The Economist reports a renewed sense of interest in its eradication, mainly because it jeopardizes the UN's Millennium Development Goals, a set of benchmarks in health, education and human welfare that world leaders committed to attain by 2015.

There's a cost-benefit rationale, too. Malaria costs Africa upwards of $12 billion a year in health expenses and lost productivity. Yet a five-year eradication plan might cost as little as $2.2 billion a year, according to a report by Malaria No More and McKinsey & Company.

With these numbers in mind, last week the UN unveiled a new campaign to fight malaria at its most critical spots. The Roll Back Malaria (RBM) Partnership — created to "enable sustained delivery and use of the most effective prevention and treatment for those affected most by malaria — staged the first World Malaria Day last week. It coincided with a UN plan to spray inside houses and distribute insecticide-treated bed nets to "all people at risk" of the disease by the end of 2010.

Any effort to stamp out malaria must deal with an added layer of complexity. When diminished but not destroyed, malaria can come back with a vengeance. Any letup in the eradication campaign may end up actually increasing the numbers of those at risk.

But considering how much malaria undermines the war on poverty, a risk taken to ensure its eradication may be a risk worth taking.

Finally, there is an upbeat news piece about Africa. The BBC released a brief story on Jan. 31st about the opening of a stock market in Rwanda. For a country that has known its share of sorrow, this is one more element that can direct Rwanda toward a more hopeful future.

Upon opening the Rwanda Capital Market, President Paul Kagame described it as a milestone for the nation. The hope is that the exchange will aid the economy, which has yet to bounce back after the 1994 genocide.