A typical Ugandan woman gives birth to an average of seven children, far higher than for other countries, including neighboring Kenya and Tanzania. There are many factors that push Ugandan woman to give birth to many children. For instance, low levels of schooling of women in Uganda often result in early marriage and early pregnancy. Inadequate access to family planning services, as well as cultural pressures that reward women for having many children, also contribute to Uganda’s high fertility rates. However, another important reason for Uganda’s high prolificacy is that children are a way of ensuring parents are taken care of after when they retire from active employment and can no longer fend for their livelihood. This incentive is particularly acute due to the fact that the Uganda pension system does not reach the majority of the country’s population. Today, although the elderly are still few in numbers (i.e., less than 5 percent of the population), only 2 percent of them are receiving a pension. Children are therefore perceived as a form of pension to many Ugandans because the majority of the population is not covered by any other system of protection.
Labor and Social Protection
These are some of the views and reports relevant to our readers that caught our attention this week.
Why are indigenous people left out of the sustainable development goals?
The great danger in compiling a list of priorities for international development, which is what most of the development industry has been preoccupied with for the past couple of years, is the dreaded “shopping list” or “Christmas tree”. This is where everyone’s pet problem is included and we don’t have a list of priorities at all, but a list of almost everything wrong with the world. So I write this article with some caution. All told, I think the drafting committee for the sustainable development goals (SDGs), which will replace the millennium development goals (MDGs) after 2015, has done a decent job. The fact that there are still 17 goals (which is too many) is a consequence of the pressing problems that global co-operation can help to fix, rather than an inability to prioritise. Nevertheless, there is a gaping hole. Indigenous people are conspicuous only in the fleeting nature of references to them.
The normal rhythm of politics tends to lead most nations’ economies around in a circle, ashes to ashes. This life cycle starts with a crisis, which forces leaders to reform, which triggers an economic revival, which lulls leaders into complacency, which plunges the economy back into crisis again. Although the pattern repeats itself indefinitely, a few nations will summon the strength to reform even in good times, and others will wallow in complacency for years -- a tendency that helps explains why, of the world’s nearly 200 economies, only 35 have reached developed status and stayed there. The rest are still emerging, and many have been emerging forever.
India has long been criticized for strict labour laws and burdensome business regulatory environment. This can also be easily substantiated by the fact that India is ranked 134 out of 189 economies in terms of ease of doing business by World Bank in 2014 (1). Indian labour market is subject to more than 50 central government laws and regulations that deals with range of subjects such as employment condition, social security, wages, industrial relations to name a few. As labour is a “concurrent” subject in Indian constitution, both state and central government can pass laws pertaining to this subject within their jurisdiction. As a result, there are numerous other state specific labour laws as well which varies from one state to other.
Co-Authors: Aleksandra Iwulska, Javier Eduardo Báez and Alan Fuchs
In April this year the Dominican Republic borrowed 1.25 billion US dollars on international markets in 30-year bonds. The DR is the only country in the B investment rating group that successfully issued 30-year bonds in the last 6 years. The country has a total of 2.75 billion US dollars for three issuances in the past 15 months.
At the same time, debt levels have been growing in the country: non-financial sector public (NFPS) debt doubled from 18.3 percent of GDP in 2007 to 36.6 in the first quarter of 2014.When considering the DR Central Bank debt stock, levels would be already close to 47 percent of GDP. It is worth noticing that Jiménez and Ovalle (2011) estimated in 56.7% the debt to GDP the maximum debt to GDP threshold that investors would consider sustainable for the DR in 2013. Meanwhile, interest payments reached a peak of 2.4 percent of GDP in 2012-13 and external debt stood at 25 percent of GDP in 2013, levels not seen since the economic crisis of 2003. But the economic realities in the DR now are much different than they were in 2003. GDP grew by 4.1 percent last year and 5.5 percent in the first quarter of 2014. The Central Bank forecasts the annual economic growth at 4.5 percent this year. Meanwhile, central government fiscal deficit dwindled from 6.6 percent of GDP in 2012 to 2.9 percent in 2013.
These are some of the views and reports relevant to our readers that caught our attention this week.
Facebook’s Gateway Drug
The New York Times
SILICON VALLEY was once content to dominate the tech world. But recently, its leading companies have ventured deep into areas well outside its traditional bailiwick, most notably international development — promising to transform a field once dominated by national governments and international institutions into a permanent playground of hackathons and app-fueled disruption. To observe this venture humanitarianism in action, look no further than Internet.org, a coalition of Facebook, Samsung and several other large tech companies that promises to bring low-cost Internet access to people in underserviced parts of the world, via smartphones.
New World Order, Labor, Capital, and Ideas in the Power Law Economy
Recent advances in technology have created an increasingly unified global marketplace for labor and capital. The ability of both to flow to their highest-value uses, regardless of their location, is equalizing their prices across the globe. In recent years, this broad factor-price equalization has benefited nations with abundant low-cost labor and those with access to cheap capital. Some have argued that the current era of rapid technological progress serves labor, and some have argued that it serves capital. What both camps have slighted is the fact that technology is not only integrating existing sources of labor and capital but also creating new ones.
As International Youth Day approaches next week, I've found myself wondering what are the primary issues affecting young people throughout the world. One topic that seems to be a common thread across regions and income groups is youth unemployment, which remains more than double the rate of unemployment for the general population.
It's well known that youth populations are on the rise in the developing world, particularly. What does this mean for the millions of young people who enter the workforce every year?
Youth unemployment is defined as individuals aged 15-24 who are without work, but are currently available for work and have sought it in the recent past. Below, I analyze data from World Development Indicators. These data come originally from the International Labour Organization (ILO), which produces its own estimates that are harmonized to account for inconsistences in the data source, definition, and methodologies. ILO estimates may differ from official unemployment statistics produced by national statistical offices.
Asia maintains lowest levels of youth unemployment
Regional levels of youth unemployment have barely changed in the past two decades. South Asia and East Asia and Pacific have maintained the lowest rates, hovering at about 10% for the last 20 years. Meanwhile, the Middle East and North Africa region has had the highest rate of youth unemployment since the 1990s, and clocked in a figure of about 27% in 2012. The biggest increase in the youth unemployment rate has been in the Europe and Central Asia region, where after years of steady decline rates have risen to over 20% since the financial crisis in 2008.
Do cash transfer programs - social protection programs that provide income to poor households often on the condition that children in these households attend school - lower child labor? Answering this question is important for a variety of reasons. Child labor is widely prevalent. According to the latest estimates of the International Labour Organization, about 10% of the children aged 5 to 14 worldwide are engaged in economic activities, often despite national child labor regulation prohibiting their involvement in work. Participation in child labor is often feared to affect children's ability to learn in school, to affect their health both in the short and long-run, and to result in negative externalities. And, while cash transfer programs are currently operated by many countries around the world and many of them target populations with high child labor prevalence rates, in theory their effect on child labor is ambiguous.
Duty- and quota-free access for exports to global markets is something developing country trade negotiators have demanded for years. Few other “stroke-of-the-pen” measures could boost employment and reduce poverty in low income countries in such large numbers. For instance if the US removed tariffs on Bangladeshi garments – which average around 13%, but for some items are as high as 33% – then exports to the US could rise by $1.5 billion from the FY13 level of $5 billion, in turn generating employment for at least an additional half a million, primarily female, workers. Examples of other countries facing US tariffs include Cambodia (12.8% average tariff rate on its exports to the US), India (4.01%), Indonesia (5.73%), and Vietnam (7.41%). Progress in trade facilitation would likely have even greater pay-offs to growth and employment, but these require structural reforms and investments, while the decision to remove tariffs is a simpler, “stroke-of-the-pen” measure.
When one part of the local economy fails, it spills over into other parts of the economy. Maybe this isn't so surprising. However, recent research in Zambia highlights a less obvious link: farmers who can't get access to credit during the hungry season (January to March) increase their off-farm labor supply, drive down wages, and maybe even undermine their own agricultural yields.Fortunately, there is new evidence that providing consumption loans can help farmers invest in their own fields, and — we hope — boost their productivity.
When economists think about price shocks, they consider how a change in price will affect the supply and demand of a product. But when that product is human – i.e., a worker – interpreting the impact of a price – or wage – shock is no longer cut and dried.
Just consider: If your wage was suddenly cut, would you remain in your current job despite the loss in earnings? Would you quit immediately, or look for a new job while continuing to work? How long could you survive on your lower earnings? Would you be forced to sell your house or other assets? How much money and effort would you invest in finding a better job? Would your personal circumstances allow you to take a better job in a distant location? Would you uproot your family for this job?