David Roodman strikes a balance in “Think Again: Microfinance,” a new article out this week in Foreign Policy. He gets to the bottom of five microcredit myths, which come from both supporters and detractors of microfinance.

Are there any you disagree with?

Earth to Big Oil: On a global scale, The Keystone XL pipeline would probably kill more jobs than it creates.

Proponents of the proposed pipeline from Canada’s Athabasca Tar Sands to the Gulf of Mexico claim that its construction would create jobs. But while the long-term employment prospects are debatable at best, the resulting long-term economic devastation is far more certain.

The recent decision by the Obama administration to deny a permit for the construction of the pipeline has received much press and been touted as a victory for environmentalists. But as climate activist Bill McKibben and his organization point out, stopping the extraction of the tar sands would be a victory for those far removed from the American environmental movement as well.

McKibben said in an interview with Green Prophet that “Any place that is already living close to the margins is in the greatest danger” when facing climate change.

This means the world’s poorest, already suffering from food shortages and decreased agricultural production, would be hardest hit by this carbon bomb. And scientific consensus backs up McKibben’s view.

David Wheeler, senior fellow emeritus of the Center for Global Development, compiled a recent study specifically tying the exploitation of the Canadian oil sands to increased agricultural losses.

Wheeler concluded that “full exploitation of Canada’s oil sands deposit would impose significant agricultural productivity losses on over 3 billion people in the developing world, and particularly in sub-Saharan Africa.” He calculates that “combustion of the Alberta deposit would increase the atmospheric concentration of CO2 by 99 ppm, or 21.3 percent of the increase already projected to occur by 2100.”

Or, as reputed climate scientist Jim Hansen of NASA put it, tapping the tar sands would be “essentially game over for the climate."

Wheeler's findings show a "game over" scenario in poor rural regions, in particular, predicting agricultural productivity losses of up to nearly 13 percent in Africa and 9 percent in Asia. Wheeler, who also created a ‘Climate Vulnerability Index’ by country, sums up his findings powerfully and succinctly, stating "Put simply, the potential destructive power in Canada’s oil sands exceeds anything modern civilization has witnessed to date."

“This new report puts into stark relief exactly what ‘game over’ looks like: Millions upon millions of starving people across the planet," says 350.org co-founder Jamie Henn.

On the ground, countries projected by Wheeler to see further damaging impacts are already struggling with agricultural losses. Another 350.org co-founder, Phil Aroneanu, told Global Envision that “we have a plethora of anecdotal and story-based thoughts from our organizers around the world” of agricultural devastation and food shortages linked to changing climate patterns.

Drought-stricken countries in the Horn of Africa, including Ethiopia and Sudan, among others, provide some of the most poignant images of climate-related suffering. An Oxfam International report points out that 85 percent of Ethiopians depend directly on agriculture. And as a local farmer told Oxfam, “The rain doesn’t come on time anymore. After we plant, the rain stops just as our crops start to grow. And it begins to rain after the crops have already been ruined.”

And with the projections from scientists like Hansen and Wheeler, Africa’s farmers and communities appear unlikely to recover soon.

While McKibben writes that “Blocking one pipeline was never going to stop global warming,” and Obama’s denial of the Keystone permit may well not kill the project in the long run, the scientific and anecdotal evidence is clear: Vulnerable populations are suffering at the hands of carbon kings already, and tapping the tar sands will exacerbate their problems.

So the Keystone proposal may or may not be dead. But the political discourse around potential job-killing has mostly left out an important aspect: the killing of crops and livelihoods elsewhere in the world.

McKibben has said that extracting Canada’s tar sands would mean lighting the “fuse to the biggest carbon bomb on the planet.” For now, at least, that fuse remains unlit.

How bad is the drought and famine in East Africa? Climate scientist Simon Mason elaborates in this video interview. Comparing East Africa’s situation to other drought situations, Mason highlights the dramatic impacts in a region receiving 5 to 25% of its usual expected rainfall.

With the world facing more and more severe climate-related disruptions, Mason explains some ways in which weather forecasting is being used to help humanitarian aid organizations prepare responses in the short and long term. Check out his interview here.

Egypt today sounds a lot like Egypt before the revolution: high unemployment, corruption, poverty. And a whopping 35 percent unemployment rate for people under the age of 30.

National Public Radio's Marketplace correspondent Stephen Beard reports from Cairo.

David Roodman is creating a stir in the world of microfinance with his new book, Due Diligence, which concludes that microfinance’s average impact on the poverty level of clients is zero.

He shared the writing process for the book on his “Microfinance Open Book Blog,” where he continues to post updates. Check it out.

This article was republished by The Christian Science Monitor.

In Haiti, cash is escaping from wallets and savings accounts are breaking free from brick-and-mortar banks.

Two years after 2010’s devastating earthquake, mobile money has taken off in the island nation. While the country has seen setbacks in many areas and continues to struggle, one bright spot is the transformation of the country’s traditional banking sector. Physical banks were wiped away by the quake and subsequent hurricane, and a mobile banking network that uses cell phones has grown up in their place.

Toting your money around on a cell phone might sound scary, but for many Haitians it’s more secure than carrying around a wallet, which isn’t protected by a PIN. The handy infographic to the right shows how a mobile money transaction works.

In the months following the quake, both Mercy Corps (our parent organization) and The Gates Foundation sponsored separate Haitian cell phone companies, Voilà and Digicel, to help mobile money take off, with the Gates Foundation offering monetary incentives for the first company to get a program off the ground and for continued improvements in order to get entrepreneurial engines revving.

For many Haitians, mobile money can open a door to personal choice. Mercy Corps has used mobile money to distribute food aid to families across Haiti and deliver payments from its cash-for-work programs. Instead of spending hours waiting in line for a cash payment or a food ration, Haitians receive a wireless money transfer on their phones once a month.

The technology holds promises for the future, too. Long-term, mobile money could be expanded so that it’s accessible to everyone for all of their personal purchases. Haitians could use mobile money to send remittances to family members in other parts of the country, according to AudienceScapes. And after visiting with Mercy Corps staff in Haiti in 2010, New York Times columnist Nicholas Kristof wrote about the way that mobile money is creating a way for the poor to save money like never before. Most banks won’t accept very small deposits, but now a mobile phone could double as a savings account. It could blow the microsavings sector wide open.

Mobile money could also help make Haitians healthier. Even before the earthquake hit, Haiti’s public health indicators were the worst in the Western hemisphere, according to the U.S. Department of State, and those problems were only compounded by the disaster. In Kenya, one of the first countries to adopt mobile money, customers can use it to pay - and save up for - health services. Expectant mothers use it to save for health care, and in rural communities Kenyans have used the service to pay for access to clean water, reports USAID. Looking forward, a mash-up of mobile health and mobile money technologies in Haiti could lead to new insurance plans and health voucher programs, according to Health Unbound.

With mobile money quickly gaining widespread use, the developing world is leaps ahead of the developed. Mobile money launched in Kenya in 2003, according to The National Archives, but Google Wallet’s similar service in the U.S. wasn’t released until September of last year and has yet to truly take off. Maybe it’s time for American company executives to start taking a few pointers from Haiti.

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.

Developing countries face overcrowded classrooms and empty libraries. Students have started addressing this issue by filling shelves with their own stories.

Many children in developing countries do not have books to take home or read in class. If they do, they’re usually not translated into local dialects. This means limited use by parents at home, many of whom are also illiterate. UNESCO reported in 2010 that one in five adults is illiterate. Not only learning to read but having easy access to books and other printed material is imperative to improve this staggering statistic.

While some rural communities have access to e-readers, they're few and far between. This is where innovation and imagination come in. A primary school in Chingoe, Mozambique, is filling its library with homemade books, shaping young readers by allowing them to share their own stories. The Literacy Boost program by Save the Children applies this hands-on method and has seen results. Teachers write their own short stories, children draw illustrations that serve as writing exercises, or parents tell stories to their children for transcription. Add a little string for binding and you’re set. It's an innovative way to promote and combine oral traditions with basic education.

Writing can also help children cope after disasters or hardships. Drawing or writing out their experiences is a constructive way to process emotions. Sharing these stories with their peers helps in the recovery effort while simultaneously improving important written and verbal communication skills.

While some may not ascribe a homemade library the same prestige of traditional textbooks or literature, it provides an important foundation where needed most. Children are able to read at home, engage their family and community, and boost their learning skills. No matter who wrote it, taking a book home to read is the first step in realizing the magic of education.

Last month, I called TOMS's "One for One" model a great marketing tool, but bad aid. Oliberté, a new footwear company being labeled the anti-TOMS, is proving that what Africa needs is fair jobs—not endless dependence on handouts.

Oliberté is creating buzz for its commitment to fair labor practices and for the quality of its product. Tal Dehtiar, the Canadian founder of Oliberté, had experience in aid work before starting the company. He’s committed to creating jobs in Africa at a time when other manufacturers continue to be discouraged by the negative stereotypes of the region. So far, Oliberté operates in Ethiopia, Kenya and Liberia; there are plans to expand to Camaroon, Congo, Uganda and Zambia.

In a GOOD magazine feature, Dehtiar explains the difference between Oliberté and TOMS—he believes that with TOMS' handouts to Africa, there is no incentive for dependencies to end. "He’s skeptical of the company's one-for-one model because he believes the donations can pressure local shoemakers and vendors, in addition to reinforcing stereotypes about the developing world," writes Tate Wakins in GOOD.

The Oliberté model is fundamentally different than TOMS's. It’s selling pride, not pity.

The world's poorest have long struggled to borrow. Now, an alternative microfinance model is also making it easier for poor people to save.

Microfinance institutions have provided lending services to millions of the world’s poor people for several decades. But loans must be paid back, and even traditional microlenders are hesitant to lend money to the poorest of the poor—including those living in some of the most remote and unpopulated communities. That’s where the model of village savings and loans associations (VSLAs) comes in, according to a recent Economist article.

The idea is simple: savings, rather than just borrowed money, is key to helping poor people become more stable and less vulnerable. Differing from the better-known Grameen Bank model of microfinance, which provides individual or group loans and operates on credit, a village savings and loan scheme allows a group of community members to pool their savings, lend within the group, and save the interest earned from the loans to disperse to members individually or use for community projects.

This model enables both borrowing capabilities and longer-term savings accumulation for both the group and its members.

CARE International, a humanitarian aid organization focused on fighting poverty, engineered the VSLA model in Niger in 1991. Today, CARE oversees village savings and loan associations in Ghana, Malawi and Uganda. Numerous other non-governmental organizations have promoted village savings groups that serve more than 4.6 million members in 54 countries.

While nonprofits promote the model, the groups themselves are internally managed. Unlike solely credit-based models, group members do not owe repayment to an external bank, but rather to their own pool. Group constitutions are established by members, outlining rules, interest rates, and how savings and interest will be shared. Sometimes transactions, debts and credits are written in basic ledgers, but some groups with no literate members rely on memorization, familiar to those with a culture of oral history, according to Hugh Allen, founder of VSL Associates.

Amid criticism of the effectiveness of traditional microfinance models, as we reported a few months ago, VSLA schemes offer a different path to poverty alleviation.

And for some of the world’s poorest, savings—not a loan— is the golden ticket needed for a better life.

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.

When educated professionals depart a developing nation, does greater wealth arrive? Some scholars in the international development community are saying farewell to the notion that the ‘brain drain’ hinders impoverished countries from expanding human capital and increasing the growth rate.

Exit brain drain. Enter brain gain.

The brain drain has long been perceived as a constraint on the progress of developing nations—much-needed doctors, professors, and scientists often abandon their homelands in exchange for better salaries and more comfortable lives in the developed world. However, research indicates that if countries can hit a sweet spot of sending around 20 percent of their talent to other countries, the residual impact of those individual losses will actually spur economic and educational growth at home.

But how? One way is through remittances, cash transfers from an individual in one country to another elsewhere. Take Ghana, for example. Some figures place remittance levels at $400 million per year, on par with the country's two biggest exports, cocoa and gold, which account for 25 percent of the foreign exchange earnings of the nation. To put this figure in perspective, in previous years Ghana has received around $650 million in foreign aid. Compared to other developing nations, that's low—in some, “remittances are more than double the amount of foreign aid,” as reported by Foreign Policy.

Furthermore, remittances can withstand the tests of natural disasters, and political and economic crises. Chances are an economic and political collapse in Egypt would deter foreign investment but encourage a migrant to increase his or her monetary givings to Egyptian relatives. Now those are derivatives Fannie and Freddie should have bet on.

Much of the new economic activity happening in African countries like Ghana are catalyzed by residents who have traveled or lived in developed countries. New York University professor William Easterly refers to this as “brain circulation,” that is, the movement of ideas and investments from educated professionals between their homes and the West.

Often, brain drainers will eventually return to their country of origin or maintain residency both abroad and at home. Not only do these individuals in turn support the economic development of their hometowns, but they also inspire members of the community to invest in education. According to Easterly, most students are motivated by the idea of living abroad, noting that “if this prospect is closed tightly, this may have an effect on the effort levels of students in the system, and therefore the quality of the graduates of the school system.”

Additionally, travel expands capital horizons. Robert Guest notes in Foreign Policy that “countries trade more with countries from which they have received immigrants.” A migrant living in the UK might inform his sister in Somalia that there is demand in his city for a specific talent she may have the skill sets to provide. Diaspora thus encourages a fluidity of ideas, innovations, and supplies and demands between often disconnected parts of the world.

Investing money abroad can be the best way to bring more of it home. Brainpower may work that way, too.

In the developing world, many children’s lives end before they have a chance to begin. The developers of Embrace—a portable and cost-effective incubator—believe they have hatched a solution to infant mortality.

With a design similar to a doll-sized sleeping bag, Embrace uses a removable wax insert that requires only hot water for heating. When the warm wax is inserted, the sleeping bag can maintain a consistent temperature of 98 degrees for 4 to 6 hours, allowing low-weight infants to maintain a warm body temperature as they would in an electronic incubator. However, unlike a traditional incubator, which on average costs a hefty $20,000, the Embrace weighs in a much lighter $100. Extensive research was done in both India and in U.S. hospitals on over 170 babies to verify Embrace’s efficacy and safety.

Today, nearly 450 infants die every hour and more than 20 million children are born premature or with a low birth weight each year . If this new product is embraced by the developing world, more will have a chance of living a meaningful life.

You need two DNA sets to tackle big development challenges. You need a development DNA—an understanding of the particular needs and characteristics of your customers, the poor people that you're trying to reach. And you need business DNA—how do we structure solutions that are fit for purpose, scale and sustainability?

- Christ West, Director, Shell Foundation

Stanford Social Innovation Review, V9N4

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?

Last week, two products were unveiled that may drastically change youth interaction with computing—One Laptop Per Child’s tablet computer and Raspberry Pi’s $35 Linux Computer.

One Laptop Per Child is already well-known for its campaign to provide any child who needs one with a rugged, low-cost, low-power, Internet-connected laptop. The new tablet, called the XO 3.0, will cost $100 in bulk and comes with an optional hand-crank or solar panel case for charging. Educators are already excited about its potential use in the classroom.

Surprisingly, quite a few iPad users are jealous of the XO 3.0’s innovative display—it features the usual glossy tablet display but also has an e-ink display that can be used in harsh sunlight or to conserve power.

Raspberry Pi‘s mission is also to produce low-cost computers, but its credit-card-sized product, intended to plug into a television, is designed to help kids learn computer programming in addition to providing a platform for easy Internet access. While the tablet and ipad discourage users from tinkering with the hardware, the Rasperry Pi promotes this kind of hacking.

The Raspberry Pi may not be as pretty as the XO 3.0, but—priced at $35—it is considerably more affordable. It will also be available directly from its website, whereas the tablet can only be purchased in bulk.

Between these two options, more children around the world will have a better chance at self-empowering, computer-based learning.