“Scientists have discovered an enormous energy source for the world…located in the poorest countries in the world,” announced Center for Strategic and International Studies (CSIS) President John Hamre recently. “If we tap it, this energy source will double or triple GDP growth in those countries.”
The resource Hamre was discussing is not a fossil fuel like coal or oil and is not a new form of renewable energy. His remarks were a reference to the 1.8 billion young people in the world between the ages of 10 and 24. This youth population is the largest the world has ever seen and their contributions to society have drastic implications for the development of emerging markets and fragile states. If youth become productive civic and economic participants in their communities, the benefits are immense. However, when young people are forced to the fringes of society and do not have sufficient opportunities to participate in society the consequences can be devastating.
In order to help policy, society, and business leaders better understand how to ensure that young people are best positioned to be drivers of growth and development, CSIS recently developed the Global Youth Wellbeing Index in partnership with the International Youth Foundation and Hilton Worldwide.
New “malls” in downtown Nairobi offer opportunities for small business. But are their property rights being respected?
By David Owiro
Over the past few years, residents of Nairobi’s central business district (CDB) have noticed an interesting phenomenon. The previously large commercial premises on the main streets and avenues have been subdivided, converting them to mall-type premises that allow for subletting to many micro, small, and medium businesses. This phenomenon is, however, not unique to the CBD. This model, I’m made to understand, was borrowed from India, where mostly fabric traders sell their wares under one roof. The concept has spread to Eastleigh estate in Nairobi and can also be observed in some of the major towns in Kenya.
The Institute of Economic Affairs (IEA) carried out a qualitative survey of small businesses who operate in such mall-type commercial premises in Nairobi’s CBD to determine the impact of the property rights regime on their businesses, and the findings point to a deeper policy problem. In spite of the recent property rights reforms brought about by the new constitution, the study found poor enforcement of property rights, agency coordination problems, and low awareness levels among small businesses, leading to exploitation, abuse of tenant rights, and a hostile business environment.
This Saturday, April 5, marked the two-year anniversary of the signing of the Jumpstart Our Business Startup Act (JOBS Act), which paved the way for “equity crowdfunding” in the United States.
This year, the crowdfunding community celebrated that anniversary as Global Crowdfunding Day. While rules are still being drafted to make equity crowdfunding a reality in U.S., the broader crowdfunding world has already grown by leaps and bounds since that act was signed into law.
Simply put, crowdfunding allows anyone to invest in making an idea a reality — whether it’s a new product, a business, a book, movie, album, or video game, or a charitable project. By harnessing the power of the Internet and social media, crowdfunding platforms let people with innovative ideas harness donations as small as $1 from thousands or tens of thousands of people around the world who share their enthusiasm.
Someday, equity crowdfunding will allow these contributors to earn a return on their investment when they invest in a project like Oculus Rift, which was recently bought by Facebook for $2 billion. In the meantime, however, there is no shortage of creative ideas and potential in the crowdfunding community.
Facebook made headlines on Tuesday when it announced it would acquire Oculus Rift, a maker of virtual reality headsets, for $2 billion. Such acquisitions are not unusual in Silicon Valley — just last month, Facebook bought chat service WhatsApp for $19 billion. What’s unique about Oculus Rift is that it started as a project on the crowdfunding site Kickstarter.
Under the Kickstarter model, backers contribute to projects because they want to see them made. The most they can expect to receive is a copy of the finished product and a token of appreciation. The more than 2,000 backers who gave less than $275 to the Oculus project received only items like T-shirts and posters, along with the hope of one day being able to buy the VR headset in stores.
Some backers were outraged at the sale. If those who received a headset had instead received a share of the company, a $300 investment would result in a $20,000 payout (after accounting for subsequent venture capital funding.)
By Dan Erwin Bagaporo, 2013 CIPE Blog Competition Winner. Read the other winning blogs here.
The Philippines has one of the fastest growing economies in the world, recently registering 6.6 percent GDP growth (second highest in Asia). However, few Filipinos experience its benefits, as 76 percent of this growth went to the richest 40 families in the country. While the government is doing its best to promote “inclusive growth,” 26 percent of Filipinos still live on less than $1 a day. As large companies swallow up wealth, many Filipinos are left out, especially the indigent, young, and elderly, who find securing employment difficult. A few years ago, I witnessed this tragic reality firsthand.
My friends and I went to visit an old retirement home for abandoned senior citizens. We were set to conduct interviews with residents for my friends’ thesis about geriatric loneliness. It turned out, loneliness was the least of their problems. Going around the compound, we saw that it was very ill-maintained. Corridors and rooms were dirty, and pungent. The retirement home was clearly understaffed and lacked necessary funding to maintain an acceptable standard of living for its residents.
After we left, I did some research and discovered that the retirement home has constantly been the recipient of numerous social programs, from food distribution to privately-sponsored Christmas parties. I also found that many other public retirement homes experienced the same situation. My question was: despite all of the largesse, why was the quality of life of residents in these retirement homes still poor? I must admit; it took me a while to answer this question.
Both candidates in Chile’s Dec. 2013 presidential runoff were women.
In the past quarter century, the level of women’s economic participation has steadily grown in Latin America. During the first decade of this century, women’s participation grew by 15 percent, contributing to an overall decline in income inequality and extreme poverty. The World Bank estimates that currently 14.6 percent of Latin Americans live in extreme poverty – but contrast that with the hypothetical 17.7 percent had fewer women entered the workforce. Given Latin America’s steady growth in the face of worldwide recession in the 2000s, there’s no reason not to expect more advances for women’s opportunities.
Women’s increased political participation has also helped increase economic opportunities for Latin American women. As more and more female presidents take and hold office, more women consider professional lives outside the home to be viable options. Powerful players such as Brazil’s Dilma Rousseff, Argentina’s Christina Fernandez, Costa Rica’s Laura Chinchilla, and others provide focal points for hopeful young Latinas. Perhaps surprisingly to some Americans, many Latin American countries are passing the U.S. in women’s participation in legislatures. Women make up at least 30 percent of the legislature in Cuba, Nicaragua, Costa Rica, Argentina, Ecuador, and Guyana. At last count, women make up just 18.5 percent of the U.S. Congress.
Latin America continually ranks highly in female entrepreneurship. The region has great educational and business training opportunities for women, and women make up 50 percent of higher education graduates. In a new index recently released, Chile, Peru, Colombia, Mexico and Uruguay were ranked highest in providing the best environments for female entrepreneurs. However, women still lag in access to financial services.
However, despite these great advances, there is still inequality, room for improvement, and significant challenges facing women in Latin America. According to the World Bank, women face a variety of threats at different stages in their life. The prevalence of violence between intimate partners is estimated to be between 20 and 50 percent of women. Violence against women is widespread – more than half of the countries ranked as “high” or “very high” in levels of femicide are in Latin America – with El Salvador ranked as the worst in the world.
Jordan ranks among the lowest countries in the world on the World Economic Forum’s measurement of women’s economic empowerment. This lack of economic empowerment tends to correspond to decreased political empowerment, with reduced levels of activities such as voting.
Although women represent over half of university graduates in Jordan, they constitute a paltry 16 percent of the workforce. More than 26 percent of Jordanian women with bachelor’s degrees remain unemployed, compared to just 9.1 percent of male graduates. However, women are finding ways to overcome barriers to their economic participation by starting their own businesses. The Jordan Times reported in February that 38% of all Jordanian entrepreneurs are women, exceeding the international average of women’s participation in the field.
Lina Hundaileh epitomizes this entrepreneurial spirit. After the German company where she worked closed down their Jordan office, Lina decided to create her own job by opening a chocolate factory. She was not deterred by her lack of experience in running a business or making chocolate. It did not faze her when others laughed at her plan. She was determined to succeed and did not view failure as an option. And she loved chocolate.