Showing posts with label World Bank. Show all posts
Showing posts with label World Bank. Show all posts

Monday, May 23, 2011

The Veiled Afghani Woman and Economics



Afghanistan economy has improved significantly since the fall of the Taliban government in 2001 due largely to billions of dollars in international assistance and investments as well as remittances from Afghans in the diaspora.  However, the country remains one of the the poorest and least developed in the world and one that is highly dependent on foreign aid. Afghanistan GDP per capita, as of 2010, was $1000 and about 35% of its population live below the poverty line.

As in any country facing various hardships, the hardest hit population is the women and children. Afghani women have had to bear the severest and hardest burden of the 23 years of relentless war and gender apartheid designed to erase them from public view. Although the political and cultural position of women has improved since the fall of the Taliban, repression of women is still prevalent particularly in rural areas where women are restricted from public participation. One in every three Afghan women experiences physical, psychological or sexual violence and every 30 minutes a woman dies during childbirth. 70% - 80% of women are forced into marriages and 87% of women are illiterate because they are denied basic education. Only 30% of girls have access to education.


Afghani women are slowly building their ability to explore and achieve improved economic potential generating hope for a brighter future for them and their families. It is becoming clear that the only way to improve Afghanistan's living conditions is by empowering women.  Women are the backbones of all economies around the world. In Afghanistan women play a significant role in agriculture. Of the 80% Afghans employed in the agriculture field or similar occupations, 30% are women. However, the women earn three times less than the men even though they spend as much time working on the land as men.


"The economic empowerment of women is not a women's issue, it is a development issue. Under-investing in women's economic opportunity limits economic growth and slows down progress in poverty reduction".  This was an express observation by the World Bank's (PREM) Vice President, Danny Leipzig, in 2007 at the Berlin-based dialogue on Women's Economic Empowerment as Smart Economics: A Dialogue on Policy Options. 

Canada has stepped up and is presenting new opportunities to the vulnerable Afghani women in the form of micro-finance credit projects. The Micro-Finance Investment Support Facility (MISFA) is known as one of the world's largest micro finance programs. It is providing small loans and savings services to more that 445,000 Afghanis across 24 provinces, of which two-thirds are women. Most clients use the loans to invest in small retail businesses, in agriculture or livestock. To date more than one million loans have been given totaling US$384 million. In many cases, these opportunities have helped Afghan women acquire more self-esteem, more respect within their families and has served to mitigate domestic violence. More importantly it lifts women out of the poverty cycle.

So as the opportunities for empowerment and access to financial backing and infrastructure support continue to be realized, the debate on Afghan women and their plight, their representation, and their fight for inclusion goes on. Kabul may have been liberated from tyrannical Taliban rule, but most women in Afghanistan remain veiled. They continue to watch wearily as the war unfolds, still observers and not participants in their own destiny.


Other Sources:

Thursday, May 19, 2011

Out With Strauss-Kahn, In With Who?

Strauss-Kahn in his heydays
So now Strauss-Kahn has resigned from the IMF a few months before his scheduled departure and as of this morning granted bail.

The resignation has accelerated the race for the IMF top position with Europe scrambling to hold on to this high-profile position. The Bretton Woods institions (IMF and World Bank) are notoriously very Euro-centric and it is a well known agreement (albeit unspoken) that the IMF boss is European and the World Bank boss is American - a concession by the Europeans since both headquarters are in the USA.

Traditionally, the selection of a new Managing Director is decided by IMF's executive board which is made up of 24 representatives of IMF's 187 member countries. The US, China, Japan and the UK have their own seats on the board as they are regarded as the big economies. The other countries are grouped in constituencies. Votes cast are weighted by the country's subscription to the IMF, known as its quota, which is related to the nation's share of the world economy. Clearly, unless small economies in the same constituency unite and push one representative, the position would always be occupied by the largest economy.  China and other emerging economies are underrepresented considering the new economic power blocks recently created. China's share of the global economy (PPP-GDP) is 13.6% but its IMF vote share is only 3.82%. Yet countries like the UK and France account for 2.9% of PPP GDP, but each has 2.9% of the vote.


The European Union (EU) share of the vote is about a third so if they unify behind a single candidate that would give them a greater advantage to hold on to this position. However, the EU has been known in the past not to back the same candidate. This may change considering the ranging factors beginning with the economic troubles within the Euro-zone and the louder voices of countries like China, Brazil and South Africa regarding this top position. The Wall Street on Wednesday reported that the European officials are uniting to back French Minister Christine Lagarde for this top post. The sovereign-debt problems and other European financial challenges are likely to remain at the top of IMF's agenda for the next few years and this is being seen as enough ammunition to argue that Europe should hold on to the top job for the immediate future.

China, recognizing its IMF member position as the third most powerful member urged "fairness, transparency and merit" in the selection process. Brazil and South Africa are adding their voices urging that the next MD not be chosen on the basis of nationality. The Germans acknowledge that developing countries can make a case for the top posts at the Bretton Woods institutions but argue that under the current situation surrounding the Euro it is best placed for a European candidate.

In the meantime, other potential candidates for the position besides Christine Lagarde include Gordon Brown who has been quietly lobbying for the position; Trevor Manuel, a former South African finance minister whose name has come up in other years as a possible candidate; former Turkish finance minister Kemal Dervis; Israeli central bank chief and form IMF first deputy MD Stanley Fisher; and former German Bundesbank chief Axel Weber who earlier this year bowed out of the race to succeed Jean-Claude Trichet as president of the European Central Bank.

I wonder what kind of power shake up there would be if all the developing countries including the emerging economies decided to field their own candidate who was non-European. When Africa and South America were going through their financial difficulties, the IMF executive positions were held by Europeans (and Americans) who made fiscal decisions for regions/continents they hardly knew. Now that the Euro-zone is in trouble Europe feels it is best suited for the position because of the decisions that need to be made and negotiated. Is this euro-centric arrogance or what?




















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