Economy

According to the OECD’s latest Global Outlook on Financing for Sustainable Development, developing countries are facing a shortfall of USD 1.7 trillion in the financing they would need this year to keep them on track for the 2030 Sustainable Development Goals (SDGs), as governments and investors grapple with the health, economic and social impacts of the COVID-19 crisis.

A series of impact studies showed that microfinance had mixed results. Charging affordable interest rates and offering training as well as loans simply wasn’t profitable – and profitable microfinance did not have the full effect of economic gains that was intended. A course correction was needed.  

COVID-19 has constrained many of the ongoing SDG-readying support provided to the Government of Afghanistan and may have major implications for judicious and long-term development policymaking and programming that are needed to achieve the priority SDG targets in Afghanistan.

By Deanna Morris Microlending programs have been around for 25+ years and as new players have entered the market creating even more competition, interest rates still remain high, which begs the question: is increased competition spurring greed and encouraging investment in microfinance for the wrong reasons?

By Harris Zargar

Despite various efforts, child labour in India is still a common practice. Poverty forces children to seek jobs in undisclosed service sector and many are forced into prostitution, while many other become victims of human trafficking.

Sanja Ivandić After suffering some of the most degrading and cruel aspects of the war, twenty years ago, women of all nationalities in Bosnia and Herzegovina have managed to stay equally interested in the country's development, to invest in their education, to develop the most creative ways of self-employment through rural agriculture, crafts, arts, as well as to become change-makers through civil society initiatives.

By Winston Mwale Leaders from 26 East and Southern African countries are meeting in Malawi's capital, Lilongwe to make final touches to an agreement that may see the formation of what could prove to be Africa's largest free trade area.The proposed Tripartite Free Trade Area (TFTA) is touted to improve the economic and social welfare of the citizens of the COMESA-EAC-SADC region.

If the government takes serious actions to promote local and community entrepreneurship, this will not only diversify and uplift Nepal’s overall economy, but also provide enormous employment opportunities to Nepal’s jobless youths who have very few options for employment at the moment–apart from lying up in manpower agencies and heading for ill-paid foreign employment in the Gulf countries.

By Lykke Andersen A lousy little loan, which seemed like a good idea at the time, doomed Micky to a life in extreme poverty and heavy indebtedness, while Savvy, who couldn’t get a loan, did very well. So, if you thought micro credit will help solve the problem of poverty, you might want to do a bit of math to understand the astonishing power of compound interest.

Janakpur Handicraft Centre supports economically backward women in Nepal by giving them training, employment and other opportunities to get empowered.