May 07

Putting an End to Gender Stereotypes

Gender stereotypes constantly limit the amount of progress and development that we see in our world today. Unfortunately, they are also engraved within society as an absolute norm. This video shines light on how gender stereotypes are driven into peoples’ minds from a very young age. It is meant to educate viewers on the effect that gender roles have on individuals, and why it is important to veer away from that norm. Further discussion on outdating gender roles can be found on notenoughgood.com. Check out the link to learn more and share your views.

Do you agree that gender stereotyping should come to an end? If so, how would you suggest we take down such a huge barrier? Join the discussion and let us know what you think by commenting on the video here, on Youtube and on Facebook.

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May 07

Hidden factor of food price volatility

In the context of our fragile economic recovery, the prices of food, oil and other commodities have risen again. In December of 2010, the FAO food price index reached its 2008 peak; sugar, oils and fats being among the agricultural products that most significantly increased. For instance, the price of rice rose by 127%: wheat by 136%; corn by 125%, soybean by 107% and milk by over 80%. These changes severely impact the poor, who have no resilience to such abrupt changes.

There are many possible causes that can explain the rising food prices. Many analysts point out to the occurrence of seasonal droughts in grain producing countries. Others point out to the oil price hikes that lead to an increase in fertilizers, pesticides and transportation (see post). Other factors attributed to price hikes are the use of crops for biofuels instead of for food, or the increasing demand of food from emerging economies such as China and India. Additionally, the factors associated with climate change or the continued policies of subsidies in the developed countries are not negligible causes either.

In this post however, I wish to focus on an additional factor that many do not take into account. This factor is the speculative trading of food commodities in futures trading markets. Futures trading markets are markets where commodities are contracted for sell or purchase at an agreed price, just as in any market. What makes these financial markets special is that the trading of the good takes time in the future, instead of at the moment of the agreement.  I can buy some corn today but I know I’ll receive it tomorrow. In other words, one can buy and sell commodities in a futures market regardless of whether or not one has, or owns, the particular commodity involved. For example, a farmer can sell all its wheat before he actually harvest the crops. These type of transactions allow the farmer to hedge his risks, because farmers have a buyer no matter what. He can make sure that he will have an income no matter what the amount of wheat he gets, which fluctuates a lot with season, weather, etc.

However, these markets only work when the people trading have a vested interest in the good itself. When futures markets are opened up to anyone who seeks profit, excessive speculation takes place. Indeed, when one deals in futures markets one does not need to be concerned about having to receive delivery or having to make delivery of the actual commodity, you can always exchange your good by others. For the most part they are cancelled out prior to the delivery month in the manner just described, which is why it is driven by speculation. If everyone thinks that price of wheat will be high in the future, everyone will start buying future wheat in the present. This will reduce the supply of future wheat and drive up prices. But if everyone is buying wheat today, the prices will go up today too. This is a very important market distortion. It happens when the value of commodity goods –such as food, oil, and water- is determined by financial markets (determined by expectations and speculation of agents and brokers) instead of by exchange markets (determined by supply and demand of goods). There may be enough wheat for everyone, but the price may be too high for poor people to afford it.

For example, speculators may make estimations of future scarcity and thus increase the price of a good (more people are buying the commodity that is expected to be scarce). However, their estimation is not necessarily related to the real quantity of the good. This was evident in a recent oil spike. Iran threatened to close oil supply of the Strait of Hormuz because US and EU threatened to place an embargo in their export of oil. Although Iran did not close the Strait of Hormuz, the price of oil spiked because of the speculation that it would. The threats were enough to change the oil of price even though the real supply did not change.

The change of price would be no problem if the suppliers could adjust their quantity as quickly as speculators’ demand. But the agricultural market can not adjust to the variations of the financial markets. Once corn seeds are in the soil, one can not change them to wheat, even if wheat is now more valuable. Similarly, oil and water supply depend on political decision that take time to process, thus not adjusting as quickly as it should.

The United States 1936 Commodity Exchange Act provides that the “excessive speculation in any commodity under contracts of sale of such commodity for future delivery causes sudden fluctuations or unwarranted changes in the price of such commodities”. That is, when there’s speculation of the future prices of commodities, the market is artificially distorted. Given that the market is neither regulated under current US legislation (under Commodity Futures Modernization Act, 2000) nor in the European Union, there has been undisclosed speculation of food prices in the financial markets of the developed world. Pension funds, banks, and institutional investors are the leading participators of the commodities market.

What can be done to reverse the trend of price volatility that is negatively impacting people across the world, particularly the poor? The access to information regarding commodities trading is essential, as in any financial market. Thus, to mitigate it it is essential to increase transparency levels and disclosure of the future commodity markets. Second, there has to be regulatory measures that limit and oversee the speculation, in the international as well as national level (especially in the US and EU). As the president of the Dominican Republic, Leonel Fernandez, stated in the recent high-level meeting on Price Volatility at the UN: the problem of food security is multidimensional. The causes explaining food price volatility are not mutually exclusive. There is a need to increase productivity and increase support for farmers, change subsidies, and create resilience to climate change. But financial speculation is a major cause of the observed volatility and should be treated in tandem.

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May 04

A Successful Strategy for Malaria Control

Last week, April 25th, was World Malaria Day.  This awareness day began in 2007 by the World Health Assembly. Malaria is an illness that does not seem to exist in the US or many other countries. However, the problem persists in many developing countries. This is where people are most vulnerable to malaria.

In 2010, more than 3 billion people were considered at-risk for malaria.  An estimated 216 million cases of malaria occur every year, and lead to an estimated 655,000 deaths. There are several countries within a few regions of the world where malaria is endemic.  Endemic means that it is regularly found in those areas.  These global regions include Sub-Saharan Africa, The Amazon rainforest in South America, Central America, the Caribbean, Southern and Eastern Asia, and the Middle East.

Malaria is a problem not only because of the devastating deaths it causes, but also for the economic impact. Some estimates find that malaria is responsible for a $12 billion dollar loss in the African continent alone. The illness also plays a major role in maternal and newborn health: 10,000 pregnant women and 200,000 babies die as a direct result of malaria during pregnancy.

Malaria is spread when a parasite called Plasmodium falciparum (and some other species of Plasmodium) are introduced into the blood stream. The parasite is normally hosted by a certain species of female mosquitos, known as Anopheles. The entrance into a person’s bloodstream occurs when a host mosquito bites them. Once introduced, the infectious material travels to a person’s liver and replicates rapidly for days, until finally, symptoms begin to show.

There are a wide range of preventative measures that can be taken. For example, people can be put on medication that treats the illness, the number of mosquitos can be controlled, spraying of anti-mosquito sprays, use of bed nets to prevent bites at night, when they are most common.

The use of bed nets has been shown to be extremely effective.  More specifically, when nets are treated with insecticide, they reduce the overall mortality of children under 5 by 20 percent.  The number of malaria infections Continue reading

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May 03

Mobile Banking as a Means to Development

According to a recent report by the World Bank, 75 percent of the world’s poor do not have a bank account.  Use of formal banking, the system of official bank accounts set up within financial institutions, is pretty rare within the developing world, even for those who actually have the bank accounts. Ten percent of adults in the developing world who have formal accounts have no activity in their banking account; that is, they typically do not deposit or withdraw money each month. Only two percent of counterparts in the developed world report no such activity. This is because most people in developed, high-income countries regularly have banking activity thanks to ATM cards, debit cards, checks, and other forms of electronic payment.

A major innovation that is contributing to a change in financial banking activity is mobile banking and so-called mobile money. In Sub-Saharan Africa, 16 percent of adults have used a mobile phone to Continue reading

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May 03

Improving Rural Education in the United States

One out of every five students in the United States is enrolled in a rural school, and that number has showed a trend of growth in the past. The word “rural” in reference to education is typically defined as a school district with less than 600 students in total. To put this into perspective, my high school graduating class alone had over 700 students, and I lived in a relatively small suburb in Texas.

Just like urban areas in the US, rural areas suffer from concentrated poverty as well. Besides poverty, though, rural schools face a number of difficulties that keep them from progressing at the same rate as the rest of the nation’s schools. A major fallback that rural schools see is that they generally have trouble bringing in and keeping high level teachers. There are fewer resources and fewer opportunities for growth in rural areas, which does not typically draw in new talent. Another problem that persists is that rural school districts do not have the capacity or resources to create or maintain upper level, honors, or AP classes for their students. Due to this, many students leave rural schools and have a difficult time competing against urban students for college enrollment and jobs.

When the federal government attempts to make changes to schools and education across the country,it tends to overlook the specific needs of rural communities. In fact, funding that was created to assist schools with high levels of low income students often ends up going toward facilities with larger enrollment. Obviously, meeting the needs of as many students as possible should be a priority, but not at the cost of overlooking those in rural areas. In addition, competitive grants tend to be awarded to schools that can show how the funds will be used in large scale ways. On top of that, grant proposals are often sent in by principals in rural schools, whereas larger districts have the resources and funding necessary to employ a separate staff member who allots more time specifically to grant competitions. Again, I have to say that I understand why needs tend to be met at larger levels, but I also know that no student should be disadvantaged because of their location. How many brilliant minds might we be holding back due to the allocation of funds?

To ensure that every student in the United States has an equal opportunity to succeed, our government should reconsider the actions that they are currently taking to address these problems. Obviously funding needs to be re-analyzed. While there are laws in existence that are supposed to make sure that fund allocation is not an issue, the problem still persists. Some districts are receiving far less than their fair share of support. Rural schools should receive no less attention in this area than urban or suburban schools.

AmericanProgress.org suggested that the minimum state allocation of funds should be tied to the fixed costs of operating public schools. This would create fair and equal distribution of funds to urban, suburban, and rural schools. Additionally, “wraparound services,” which make nonacademic problems connected to school, should be offered in rural areas. For example, “full-service community schools” would provide health, dental, and extra curriculars, among others, to low income students who might otherwise not have access to any of these in a rural area.

By just taking these two steps, urban schools could benefit greatly. Obviously there is much more that needs to be done, but I know that taking on too much at once can potentially backfire.

If you have any ideas on bettering the future of rural schools, please share them in the comments section. Remember, students in rural areas have no less potential than those in urban areas, they just don’t have the benefit of receiving as much support.

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May 03

Craft Beer and the Global Economy

I consider myself a bit of a beer snob, shunning the classic college staple of Natty Light for the much more expensive—but much better—craft beers like Dogfish Head, Bell’s, and Devil’s Backbone, so when I

came across an article about how craft brewing companies were improving Colorado’s economy it got me thinking.   See, this article pointed out that Colorado’s 139 brewers made over $100 million last year and provided a $446 million economic impact on the state’s economy. The craft brewing industry generated 6,600 jobs that often paid higher-than-average wages, and more job growth is expected in the future.  I did a little more research and found that though overall beer sales in the U.S. have declined in recent years, craft beer and imported beer sales have increased. It’s estimated that craft breweries provide 103,585 jobs and made $8.7 billion last year—not an insignificant amount!

So why did this get me thinking (besides the fact that I like craft beer)?  Well, after reading about what a huge impact the craft brewing industry was having on Colorado, and on the US as a whole, I started to wonder about what the effect might be internationally.  Are craft breweries on the rise elsewhere?  Could they be a potential source of economic growth?  A quick search revealed that yes, craft breweries do seem to be on the rise internationally, but not at the same rate as US craft breweries.  Shanghai, for example, now boasts four big craft breweries, Beijing two, and Nanjing one, and Chinese citizens are becoming increasingly enthusiastic about these local beers.   In Mexico craft breweries have historically struggled—right now there are only 16—but the growing US interest in specialty beers has small brewers excited about the possibility of improving their industry. Exports of US craft beers seem to have increased at a much higher rate than have small breweries abroad; in the last year exports of US specialty beers increased by 127% in Canada, 128% in Japan, 174% in Brazil, and an impressive 213% in the Asia Pacific region.

So it doesn’t seem like craft breweries are going to be a panacea for the struggling world economy, though they’re certainly helping the US economy.  It’s possible that the growing popularity of US craft beer abroad could encourage small brewers elsewhere, as it shows an increasing interest in unique flavors and higher alcohol content beer that could encourage locals to create their own specialty beers, but that doesn’t really seem to have happened yet.  Emerging markets like India and Brazil are becoming major importers of US craft beers, as these emerging economies have a growing middle class and generally suffered less from the global recession than did the larger economies of the Western world, so maybe within the next few years we’ll see the growth of a craft beer movement within those countries.

Though craft breweries didn’t turn out to be as influential in the global economy as I had expected, it were still an

interesting case study.  Who knew that small breweries were actually growing despite the global downturn, especially when the beer market as a whole has been suffering?  This is an excellent example of how one small niche industry can provide jobs and generate a fair amount of revenue, which is something I have written about in several other posts.  So next time you’re going to the store or out to a bar, look for specialty beers and help support this growing industry.  Also be on the lookout for American Craft Beer Week (May 14th-20th) events in your area: learn more about the craft, support local businesses, and try some excellent beers!  Now I’ll leave you with an interesting video about the worldwide craft beer movement; watch it and let me know what you think in the comment box!  Did you know that beer, particularly US specialty beers, were having an influence–albeit not a large influence–on the world stage?  Are you going to switch to craft brews and support this industry, or are you going to stick with the big beer companies?  Do you think this industry will continue to grow, potentially even internationally?

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Apr 30

Ending Human Trafficking in the Mekong Delta

I recently read a story on CNN about a community in the Mekong Delta region of Vietnam that resides in and around a waste dump. Parents and their children spend hours a day, from when they wake to when they finally go to sleep, picking through trash for items that will keep them alive- food, clothing, and other goods. The saying goes that “one man’s trash is another man’s treasure,” but in this case that trash is another’s means for survival.

An issue outside of poverty exists in this area as well, though- human trafficking. It was reported that girls from this area were being sold into the sex trafficking arena by their own parents. The problem was that the parents had no idea what they were doing to their children. Nonthreatening looking people, often women, would come to the dump and offer around $100 for a child to “have a better life.” This person would convince the mothers and fathers that they would be providing their children with jobs and a better future by “selling” them. The parents would willingly oblige due to their desire for their children to have a future better than their own.

Obviously a number of problems are present in this situation. Not only is there sex trafficking, poverty, malnutrition, illiteracy, and so on; there is also a lack of understanding about the actual problems that persist. Parents were even trying to persuade any foreign looking individual into taking their child away from the dump, not because they didn’t want them, but because they knew that they did not have a future there.

The Catalyst Foundation spent some time in the area and decided to push toward development. They saw the kinds of problems that were running rampant in the area and realized that change was vital. While countless organizations might approach this situation by bringing in food, clothes, or books, Catalyst did something different.

“Educate a child to end the cycle of poverty” is something that you will read if you visit the foundation’s website; their goal is to end modern day slavery. The programs that they offer vary from educating the community, providing microcredit and savings, vocational training, to sending kids to school.

The first step in their plan was to “arm” the kids living in the community with cell phones; there was a distinct effort to give the girls cell phones first. This tactic was meant to provide these kids and girls with a way to contact the organization should they be taken by a trafficker. Second, the children were taught to read. The purpose? Continue reading

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Apr 27

Midwives Matter for Maternal Health and More

May 5 is International Day of the Midwife, a globally recognized day to acknowledge the work of midwives around the world.

Midwives are an undervalued asset in many countries. But the truth is, midwives could be key to achieving Millennium Development Goals (MDGs) 4, 5, and 6, to reduce child mortality, improve maternal health, and combat HIV/AIDS, malaria, and other disease. Many people, including those involved in governments and policy-making, tend to overlook the fact that midwifery grew out of a public need and social welfare.

According to the International Confederation of Midwives (ICM), more than 340,000 women die of preventable maternal deaths each year, and according to the World Health Organization, in 2008 this number was 358,000 deaths. Many more must deal with preventable infections and disabilities.

Around the world, midwives play a valuable role in promoting maternal health and preventing needless maternal and newborn deaths. According to a UNFPA report titled “Towards MDG 5: Scaling up the Capacity of Midwives to Reduce Maternal Mortality and Morbidity,”professional midwives present a “low-technology, high-quality solution” to the problem of maternal mortality, common in many developing countries.

In the same report, UNFPA outlines the many skills a professional midwife can offer in reducing maternal mortality and morbidity.  For example, before and during pregnancy, midwives can be a source of substantiated Continue reading

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Apr 27

Del Macro al Micro: Conferencia en Harvard

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El sábado pasado fui a Harvard para la Conferencia de Desarrollo Internacional (CID), como representante del Grupo SISGI.

Los estudiantes de universidades de diversos países y muchas partes del mundo (América Latina, Asia) estaban ansiosos de tener la oportunidad de aprender de la experiencia de profesionales y académicos. Fue una conferencia muy interactiva, donde interacción constante entre los ponentes y asistentes era necesaria y facilitada por los almuerzos en grupo, concursos y eventos sociales. Profesionales del sector público, sector privado, organizaciones sin fines de lucro o organizaciones internacionales compartieron sus experiencias y expresaron sus opiniones e inquietudes sobre los retos actuales del desarrollo internacional. Cada año, se centran en una serie de temas con respecto a temáticas de desarrollo internacional y este año los cuatro paneles de discusión eran “gobernabilidad”,  “recursos para el desarrollo”, “desarrollo humano y social”, y “desarrollo sistemático”. Las principales preguntas para resolver incluyeron cosas como: cual es la mejor forma de abordar los problemas ambientales? Cómo conseguir que la comunidad de desarrollo internacional sea más eficiente? ¿Cómo asegurarse de que las estrategias para dirigir un adecuado desarrollo humano y social funcionen?

Una idea clave, presente a lo largo de la conferencia fue la importancia de centrar los esfuerzos de desarrollo en problemas locales y pequeños para  poder crear un cambio sostenible. En todos los paneles a los que asistí, la idea que parecía prevalecer era que las soluciones “macro” a los problemas de las personas no habían sido tan eficaces porque no se centraban en el problema local. Muchos de los conferencistas hablaron de soluciones dirigidas y orientadas. Abhijit V. Banerjee, último orador y autor de Economía de pobres, resumió esta idea con la frase “micro evidencia, macro aprendizaje”. Esta frase describe el fenómeno que, aunque en sí sabemos “casi nada” de como generar crecimiento, podemos conocer un poco más acerca de cómo cambiar y mejorar la vida de los niños. Las circunstancias de crecimiento económico dependen de muchos factores diferentes y la mejor manera de hacer el cambio más efectiva es mediante el uso del “conocimiento local” de la gente.

Profesor Banerjee desafió la supuesta relación entre el crecimiento económico y la reducción de la pobreza. Se trata de un problema de la causalidad: el crecimiento económico ayuda a reducir la pobreza o la reducción de la pobreza conduce al crecimiento? Afirmó que no hay evidencia clara de un fuerza entre el crecimiento y la reducción de la pobreza. Y aún si la hubiera, los intentos para reducir la pobreza mediante la promoción del crecimiento económico no han sido tan significativos. Señaló además que los esfuerzos deben concentrarse en donde son más eficaces, y eso siempre sucede en el nivel “micro”.

Escuchando similares declaraciones de diferentes oradores me hizo comprender que un cambio importante está teniendo lugar en el discurso del desarrollo. Ya no hay una creencia de una solución fácil a la pobreza. La idea de que existe una única solución a la pobreza ha sido abandonada, o al menos parece estar desvaneciendo. En el pasado, lo que podemos medir ha definido lo que hacemos y eso ha limitado mucho nuestra capacidad de actuar. Pero nos hemos dado cuenta de que medir los agregados no es lo mejor, y que muchas veces “el diablo está en los detalles”, es decir, en las repercusiones locales de las acciones. La solución siempre va a depender del ambiente, la gente, los recursos, y las circunstancias. En el futuro, tenemos que centrarnos en lo que sabemos funciona y mantenernos alejados de lo que sabemos que no funciona, y esto sólo puede lograrse observando el impacto que tenemos a nivel micro.

Al final de la conferencia, creo que muchos estudiantes se sentían satisfechos, pero también un poco perplejos. De hecho, las conversaciones cambiado el marco en el que muchos de nosotros percibía el desarrollo. Lo que es seguro es que los retos que tenemos por delante son más complejos que lo que nos gustaría que fueran, ya que no hay solución clara. Pero eso lo convierte en el un estudio y profesión mas interesante ya que las oportunidades de tener un impacto sostenible son mayores. Por el momento, creo que el reto primer importante es el de encontrar la mejor manera de empezar a compartir todas las experiencias “micro” en el ámbito del desarrollo a fin de facilitar una mayor comprensión de las complejidades a las que nos enfrentamos.

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Apr 26

Tourism in the Korean DMZ

I find North Korea to be a fascinating case study; I’ve read books about peoples experiences there (for class and outside of class), watched documentaries, and followed news coverage on the country for years.  So when I saw an article about tourism in the DMZ I knew I had to write about it!

Kim Il-Sung, the “Great Leader” of North Korea, was born on April 15th, and so the North has been in a celebratory mood lately—barring, of course, the shocking announcement on Monday the 23rd that the government would conduct “special actions” that would destroy South Korea within minutes—and has decided to re-open the Mount Kumgang area for tourism and pledged special privileges to tour firms willing to go there.  Tours have been banned at Mount Kumgang since July 2008, when a South Korean tourist was shot and killed by a soldier, but now the North Korean government is working hard to show foreign visitors a good time.  Gift shops sell “See you in Pyongyang” T-shirts and souvenir blueberry-flavored North Korean liquor, and everyone is smiling, including the two North Korean soldiers that accompany tour groups on their tour of the front line.  There are even coin-operated binoculars for tourists to view the other side.

A tour of the North side of the DMZ is pretty cheap, too, at only $20; easily affordable for tourists, but a huge sum in a country where the per capita income is under $2,000 a year.  That low income is one of the main reasons the North is pulling out the stops to encourage tourists to visit.  Tourism at Mount Kumgang once earned the North tens of millions a year from South Koreans eager to see across the border, but after the shooting relations between the two countries deteriorated and tourism came to a grinding halt, as a South Korean country, Hyundai Asan, owned the resort at Mount Kumgang.  So last year the North Korean government, desperate for an infusion of cash, stripped Hyundai Asan of its exclusive right to run tours to the area and began encouraging tourism once more.  South Korea has not been pleased with this decision, particularly after the North’s recent threat to reduce the South to ashes, and has been lobbying for a ban on all foreign tourists going there.

I have to admit, I’m not quite sure how I feel about North Korea turning the DMZ into a tourist trap, complete with gift shops and amusement park rides.  The DMZ is an incredibly tense area, with hundreds of thousands of soldiers and fields of land mines, and there’s always a threat that any minor incident could spark major conflict.  All the smiles can’t mask that danger—tourists have to sign a document acknowledging that they are entering a hostile area and there is the possibility of injury or death.  Also, there is no chance that tourism in the DMZ can be considered “responsible” or “sustainable,” and I have to wonder how much of the money tourists bring in actually reaches the North Korean people.  Then again, any money is better than no money, so even if only a small fraction of the foreign cash reaches the general population of North Korea it will go a long way in a deeply impoverished, starving country.  Plus I am really, really curious and would like to see at least some small part of North Korea.

What about you?  How do you feel about tourism in the DMZ?  What are your concerns, or your suggestions?

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