Angola has an estimated 13 billion barrels of oil. Photo: Kaysha (flickr)

Angola is consistantly ranked as one of the poorest and least developed countries in the world. But a recent Economist article suggests that thanks to Angola's extensive oil reserves, things are starting to improve. In fact, Angola's economy is expected to grow by 8 percent this year, which would make the country one of the top five economic performers worldwide.

But having an economy dependent on oil can have its downsides, the Economist points out. For example, after several years of ever-increasing oil prices, the price of oil rapidly declined in 2008 — dragging Angola's economy down with it.

Despite this volatility, Angola's economy has recently gotten back on track. And thanks to new government initiatives, the Economist reports that the people are starting to see the benefits.

The government plans to build one million homes for shack-dwellers by 2012. Teachers and doctors are being trained, children sent back to school, clinics opened, water-purification plants installed, electricity brought to villages and urban slums. José Eduardo dos Santos, Angola's autocratic yet popular leader for the past 30 years, has even pledged — for the first time — to reduce corruption.

Cotton farmers in western Africa have been badly affected by a global drop in prices. Photo: 10b travelling (flickr)

Falling cotton prices hurt African farmers far more than their American counterparts. And American subsidies may be to blame for the Africans' pain, according to a documentary on Dev.tv, a nonprofit media outlet.

American farmers profit by growing more cotton since the U.S. government has promised them a fixed price no matter how much they produce. But American subsidies cause the market to be flooded with cotton, according to an industry expert in Benin, Bernard Adikpeto. "Because the U.S. subsidizes its cotton production, its farmers put a surfeit of 1 million tonnes in the market in 2001, leading to a drop in cotton prices."

On the other hand, African farmers don't get any subsidies, so they are hit hard when cotton prices fall in the free market. Consequences are especially bad because this crop is a crucial source of income in countries of Central and West Africa. For example, the cotton industry in Burkina Faso employs more than 2 million people and generates 40 percent of the nation's export revenue. Nearly 40 percent of Chad's population is involved in producing cotton, and two-thirds of its total export comes from this crop. In all, more than 10 million African farmers have lost income since the price of cotton fell worldwide.

What's ironic is that African farmers are losing money while selling a product they produce more competitively than others. Central and West African countries produce cotton at half the cost of the U.S. and Europe. Yet, these African nations bear a loss of $1 billion in the cotton economy every year.

To learn more on this topic, you can watch the documentary below :

It will be necessary to rebuild textile factories like this one in Haiti, as well as build more of them. Photo: NewsHour (flickr)

For aid workers and development experts, simply restoring Haiti to its pre-quake conditions will not be enough. Even before the earthquake about half of the population did not have access to clean water and 90 percent of children suffered from water-born illnesses, reported PRI.

What will it take for conditions to improve? Many argue that a robust private sector will be a key part of the country's long-term recovery and ascent out of poverty. As New York Times columnist Nicholas Kristof opined, "Haiti desperately needs new schools and hospitals, but also new factories." The government services and infrastructure that NGOs and development agencies will help rebuild may provide the groundwork for a healthy economy, but their efforts cannot by themselves make it grow.

The country actually has several factors that amount to unusually good conditions for economic development, argued a report for the UN last year. Unlike many disaster zones, Hait's neighboring countries are stable, while its political leadership "is good by the standards of most post-conflict situations." Haiti's wealthy expatriate community in the U.S. and Canada funnel cash and investments there. (They contributed approximately $1.3 billion in 2008.) Some types of investment look particularly auspicious: Haiti's special trade agreements with the U.S. mean it can export goods there duty-free, making the country "the world’s safest production location for garments," while the labor it would provide manufacturers is the cheapest in the region. Significant barriers to economic growth remain, but Haiti has some often-overlooked advantages in the struggle to recover.

Cassandra Nelson helps to distribute high-energy biscuits to locals at a hospital in Port-au-Prince. Mercy Corps

Yesterday the banks reopened in Haiti for the first time since the earthquake rocked the small island on January 12th.

Mercy Corps' spokeswoman Cassandra Nelson, who is on the ground in Port-au-Prince, stressed the importance of the banks reopening in her latest post on the Mercy Corps blog. "This means a lot to the aid effort, because there are a lot of people in Port-au-Prince who have some money — maybe not a lot — but they were having to live on handouts simply because they couldn't access their money." Without cash on hand, even wealthier Haitians were forced to seek handouts while the banks were closed.

As cash became more readily available throughout the day, Nelson saw the street economy reinvigorate from the rubble of damaged store fronts. Hawkers selling bananas and mangoes are helping restart the flow of food and resources within the country, allowing aid agencies to focus on those who are most in need of help.

You can keep up with the latest news about Mercy Corps' relief efforts in Haiti by clicking here.

What do you get when you put together a small environmentally friendly Ethiopian business, a trendy-looking product, and a huge international retailer together? In the case of the company soleRebels, you get a hit!

SoleRebels founder Bethlehem Tilahun Alemu came up with the idea for her company out of a desire to make a shoe based on the flip flops made of old tires that had been worn by Ethiopians for decades, she explains to the Guardian. But instead of focusing on the local market, Alemu had her sights on the international market.

She used the internet to contact retailers and eventually companies like Urban Outfitters and Amazon.com started selling soleRebels. Her company now employs 45 workers and they can produce up to 500 pairs of shoes in a day. Sales are growling steadily, and Alemu has plans to expand: Her sales goal for 2010 is £300,000 ($479,760).

The company's progress signifies more than just a desire to for commercial success; it's a way for Ethiopians to help each other. "In Ethiopia we have become used to taking money from the west, to always getting help," said Alemu. "That does not make for a sustainable economy. We need to solve our own problems."

SoleRebels footwear is based on the sandals made from used tires that Ethiopians have worn out of necessity. Photo: soleRebels

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

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

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

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

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

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

Photo: blentely(flickr)

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

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

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

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

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

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

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

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

Chile's salmon industry is worth $2 billion and the fish are one of the country's top four exports. Chile is the biggest supplier of salmon to the U.S. and second to the world. But in the past year, a flue-like virus called Infectious Salmon Anemia (ISA) has spread through the country's salmon fisheries, sometimes infecting entire salmon stocks.

Hoping to curb the devastating effects of ISA, the Chilean government has stepped up controls and passed stricter regulations for antibiotic use and addressing overcrowding. But, compliance is costly and the industry complained of having trouble securing loans at a time when most banks aren't lending. To help fulfill the new requirements, the Chilean government announced a $120 million bailout for the salmon industry.

New Tang Dynasty Television, an independent, non-profit television broadcaster based in New York, reports on at the toll the virus has taken on the industry and what the future for the industry looks like in the following video.

Workers at a footwear factory in Dongguan, China. Photo: clayirving (flickr)

Made in China.

It's a label you might associate with cheap labor and mass production — but a recent study featured in BusinessWeek says that China's products may no longer be the best bargain for U.S. companies.

Outsourcing to mainland China has several "hidden costs" related to rising labor and currency rates, the report reveals. In the last three years, the yuan has gained ground on the weakened U.S. dollar and factory workers wages are going up. This translates to a drop in the average price gap between China and U.S.-manufactured products — from 22 percent to 5.5 percent.

And when you add in the costs that come with producing goods halfway around the world — storage fees, shipping delays and the price to repair or replace high-tech product parts — the ultimate savings are minimal. "A couple of years ago, outsourcing to China was a no-brainer," says Stephen T. Maurer, director of AlixPartners, the firm that led the study. Now, he tells BusinessWeek, manufacturers are thinking twice about where to send their business.

Some U.S. companies are turning to Mexico, where manufacturing rates are cheaper than China's and suppliers across the border are more accessible.

That doesn't necessarily mean that the label "Made in Mexico" will replace "Made in China." Low wages for factory workers still make China a top competitor when it comes to labor-intensive products like toys and clothes.

A Mongolian herder at work. The drop in demand for cashmere made from the soft fibers of Mongolian goats is putting many herders out of work. Photo: Smee (flickr)

The global economic downturn seems to be hitting every corner of the world — including the Gobi desert in Mongolia. A steep drop in demand for cashmere and wool made from the soft fibers of Mongolian goats are putting the country's nomadic herders out of work, according to a Wall Street Journal article.

The implications of the drop in demand for cashmere are very real in Mongolia. The Wall Street Journal reports that about a quarter of the population earns a living off of raising animals. Borrowing more than they could afford, many herders were living off credit from banks, who themselves put too much faith in the price for cashmere. Over-leveraged herders are now being forced to sell their tents or livestock to pay off their debts.

Purevdelger Budkhuu, a 38-year-old widow, sold all of her 128 goats to pay back her $1,270 loan to the bank. Budkhuu moved to the city with her two children in hopes of finding other work but has yet to find a job.

”I don’t know what to do. I can’t go back to the countryside because I have no animals...and I can’t stay here because I can’t find a job.”

For many local business owners in Syria, they hope that the economic transition will improve business and living standards. Photo: hazy jenius (flickr)

Syria’s economy is undergoing some real changes. Once known for its socialist policies, Syria is now attempting to spur economic growth through market-based reforms. While such growth is expected to boost Syria's income, experts differ on how, or if, they believe money will reach the poor.

The reforms include cutting back on government subsides, expanding the private sector, and attracting foreign investment. A World Bank report states that between 2006 and 2007, Syria's foreign direct investment nearly doubled — reaching $885 million by the end of 2007. What's more, foreign investment is expected to expand following the opening of the Damascus Securities Exchange — Syria's new stock exchange.

Robert F. Worth of the New York Times says Syria is being forced into a new economic model.

Socialist self-sufficiency is no longer an option for Syria. The oil reserves that once provided the mainstay of state revenues are running out. Exports have tumbled in recent months, as have remittances sent home by Syrian expatriate workers.

In the mid 1990's Syria's oil output hovered around 600,000 barrels per day. Today, output has shrank to 350,000 barrels a day — a decline of nearly 60 percent.

But, as Syria transitions, critics question whether these changes will actually reduce poverty.

“In Syria the growth rate is a strong 6 percent, but the question is: who gets this growth?" says Safi Shujaa, director of the Syrian Economic Center. "According to some economists, 70 percent of gross domestic product goes to only 30 percent of Syrians.” Shujaa thinks that cut backs on government subsidies — which range from agricultural products to fuel, water, and electricity — have pushed many economically vulnerable Syrians directly into poverty. On the other hand, the subsides have simply gotten too expensive for Syria to bear along with its mounting debt. In 2008, subsidy costs for the government reached $7 billion.

Syria's economic transition comes at an interesting time. With talk of a new and improved relationship between Syria and the United States — and possibly Israel — Syria's economic strategy may be aided by improving political relationships with the west.

"If relations will improve," says Mohammed Salem, a Damascus perfume-shop owner, "the economy will improve too."

A young girl walking on the outskirts of Kibera, the largest slum in Africa. Photo: subcomandanta (flickr)

More than $50 billion of foreign aid is given to African countries every year to address poverty on the continent. Although this may seem generous, and to some a solid strategy to treat Africa’s ailments, Dambisa Moyo — a Zambian economist with a background that includes Harvard, Oxford and Goldman Sachs — says just the opposite.

In her new book, Dead Aid: Why Aid is Not Working and How There is Another Way for Africa, Moyo claims that foreign aid has been "an unmitigated political, economic and humanitarian disaster.”

In a recent op-ed piece in the Wall Street Journal, Moyo writes that although she isn’t completely against humanitarian aid, she doesn’t believe "charity-based aid" can provide long-term sustainable development for Africa. Her biggest issue is with “government-to-government aid,” and funds from large monetary institutions like the World Bank. Moyo says the $60 trillion of this aid that's been given in the past 60 years is not working, evident from the fact that the number of Africans who live on less than $1 day has doubled in the last 20 years. And most foreign government aid, she argues, has been pocketed by corrupt politicians.

Trade, foreign investments and microfinance opportunities can provide a better future for Africans, Moyo said in an interview with the New York Times.

As expected, Dambisa Moyo’s claims have come under fire. In an interview with Newsweek, ONE Campaign co-founder Jamie Drummond says “Dead Aid” is “a poor polemic, with nothing new of substance, filled with anecdotal micro examples which ignore mountains of evidence." Madeleine Bunting from the Guardian calls Moyo’s claims “poorly argued” with “frequent pre-emptory glib conclusions.”

I wanted to get another perspective on Dambisa Moyo's assertions regarding the effects of foreign aid on Africa. So I asked Laura Miller — Program Officer for Central Africa at Mercy Corps — to respond to some of Moyo's claims based on her experience in the international-aid business, including stints in the Central African Republic and the Democratic Republic of the Congo.

Leaders at yesterday's G20 summit in London affirmed a commitment to bailing out developing countries. Just how is this plan spelled out? Change.org blogger Michael Kleinman was at the meeting and conveniently excerpted the sections of the G20 Communique that speak to the needs of the world's poorest nations.

Included in the Communique's promises:

$50 billion to support social protection, boost trade and safeguard development in low income countries, as part of the significant increase in crisis support for these and other developing countries and emerging markets;

Social protection for the poorest countries, including through investing in long-term food security and through voluntary bilateral contributions to the World Bank’s Vulnerability Framework, including the Infrastructure Crisis Facility, and the Rapid Social Response Fund;

The use of additional resources from agreed sales of IMF gold, together with surplus income, to provide $6 billion additional concessional and flexible finance for the poorest countries over the next 2 to 3 years.

For a candid, on-the-ground synopsis of the summit, check out G20Voice, a group of bloggers from 22 countries who had all-access passes to the summit. G20 voicers feverishly posted photos, video and audio clips that highlight discussions most relevant to poor countries.

The Nano. Photo: Rajesh Babu (flickr)

If you have $1,979 dollars and live in India, Tata Motors has a car for you.

After a lot of hype, Tata Motors finally released their revolutionary Nano, a tiny, light-bodied vehicle designed and produced in India.

Tata is expecting millions of orders, so they're planning to raffle off the first 100,000 vehicles.

Many are concerned about the safety and environmental implications of a surge in car ownership in India, and whether the country's road system can handle increased traffic.

Speaking about the impact on air pollution, Vivek Chattopadhyaya of the Centre for Science and Environment in Delhi says,“Even if they claim it will be fuel efficient, the sheer numbers will undermine this." (Tata retorts that the typical Indian scooter has higher emissions.)

But of course there are throngs of Indians, such as chauffeur Gopal Pandurag, looking forward to the arrival of a car they can afford.

"My wife is getting old, and she can't do the things she used to when she was younger like sit on a bike or a crowded bus. I just want to be able to take her out for a drive in a car. My own car."