Economy

Mohammad Anas Wahaj | 29 jun 2016

There are almost 50 million people living in poverty in the United States, almost 15 percent of the population. Although there are continuous efforts by governments, organizations and individuals to eradicate poverty, but the challenge is huge and at times results are not what are expected. Sometimes there is also lack of coordination between nonprofit agencies and difference in approaches to tackle poverty, even in same locations and dealing with same people. Kavitha Cardoza of WAMU shares her views on poverty with Morning Edition host Matt McCleskey. She says, 'As someone who grew up in India, where you interact with tons of poor people every day. But here (US), poverty is so hidden. Think of people who work minimum wage jobs - office cleaners come in overnight; if you have a maid at home, she comes in when you're at work. And if you think of say, a McDonald's, everyone is wearing a uniform and looks the same. We have sanitized poverty.' She explains, 'We tend to see poverty as fixed when it's really fluid. Of course it's about not having enough money, but we tend to forget all the challenges that go along with that. It becomes about food and housing and transportation and healthcare. And each of those problems leads to more problems.' Moreover, owning a cell phone, a TV or a kid having fancy sneakers, shouldn't be questionable in a poor situation, as they may serve a purpose contrary to typical perceptions. She quotes Greg Kaufmann, Editor of Talk Poverty, who says, 'Put yourself in a poor parent's place. People don't want their children to seem poor, they don't want to seem poor. Clearly, we have so much stigma attached to poverty. Kids get teased. Again as a parent, you can't get what middle class kids get - the sports camp or the music class, and so wouldn't you want to try to do something for your kid? And maybe actually that pair of sneakers is the cheapest thing you could do.' Speaking on lack of coordination and cooperation among charities that are helping poors, she says, 'There isn't a lot of incentive to collaborate...Part of it is each has different ideas about tackling the same problem, they want to do it their way and they all have different governance structures. And different ways of measuring success.' She quotes Bruce McNamer, President and CEO of the Community Foundation for the National Capital Region, which works with lots of human services organizations throughout the area, who says, 'The biggest challenge is charities compete with each other for funds. And that does sometimes create incentives for people not to work as closely or to be jockeying among themselves for the attention of funders...And the funding models that are in place to fund nonprofits in some sense encourage that inefficiency.' She quotes Katherine Boo, author of 'Behind the Beautiful Forevers', a book about poverty in Mumbai, who says, 'Journalists often cover poverty by going to a nonprofit and doing a story on someone who is doing well, they've had challenges, now they're fine. The story ends with everything tied up in a neat little bow. That's doing listeners a disservice because then they think that's how it is. There are no relapses, no challenges, no one who doesn't make it. And that's just not true.' Read on...

WAMU.org: How Traditional Nonprofits Run Into Problems Trying To Tackle Poverty
Author: Kavitha Cardoza

Mohammad Anas Wahaj | 23 jun 2016

According to the survey by U.S. Trust (a subsidiary of Bank of America), of 684 high net worth (HNW) individuals, all with investable assets of US$ 3 million or more, there is increasing interest and activity in social impact investing, particularly among women, Millennials and Gen Xers. The survey also found the 7 out of 10 HNW Americans have more confidence in the private sector to solve social and environmental problems than the public or nonprofit sector. Moreover, another 6 in 10 believe that private capital invested in social and public programs can produce superior outcomes, all while ownership and interest in impact investing climb. Jackie VanderBrug, Managing Director of U.S. Trust, says, 'Understanding how and why individuals make impact investments is an increasingly important component of nonprofit management. I think that nonprofit executives that look at impact investing as a trend to be welcomed and embraced are going to be the ones ahead of the curve. Impact investing is not going away. It's fundamentally changing how investments are being made by individuals and fund managers. Understanding that and what it means to your donor base, constituency and board members is an important part of a nonprofit executive's job.' The survey report also finds that, environmental protection and sustainability is the issue that matters most to HNW investors, followed by healthcare equality and access; disease prevention, treatment and cure; access to education; and assistance for veterans. Ms. VanderBrug further adds, 'This is not about confusing philanthropy. Our clients are extremely philanthropic and we don't think that that should stop. My experience is that most individuals who are interested in impact investing are also very philanthropic. They understand that all sectors of the economy need to work.' Read on...

The NonProfit Times: Big Donors Losing Faith In Charity To Solve Problems
Author: Andy Segedin

Mohammad Anas Wahaj | 06 jun 2016

According to the new research by Prof. Eliza Forsythe of University of Illinois at Urbana-Champaign, when hiring slows during recessions, the brunt of job losses is borne by job-seekers in their twenties and early thirties. Prof. Forsythe is an expert in labor economics. She says, 'Younger workers are less likely to be hired during recessions and, when they are hired, they tend to find lower-quality jobs and earn lower wages. More-experienced workers see neither of these effects. In fact, the evidence indicates that these more-experienced workers actually crowd young workers out of the labor market during recessions.' Prof. Forsythe explains that this disproportionate affect on young workers during recession make it difficult for them to acquire skills and experience, and establish their careers. Moreover, it also has negative effects on overall economy. It can become difficult for firms to get trained workers when older workforce retires. Explaining the plight of students who graduate during recession, Prof. Forsythe gives an example of Great Recession when the market for new lawyers collapsed. She says, 'In more recent years, hiring has recovered, but firms prefer to hire new graduates rather than those who happened to graduate during the recession and couldn't find jobs.' Prof. Forsythe suggests that clear understanding of hiring patterns and labor market mechanism during recession, is crucial for the design of effective labor market policies. She says, 'Since there are these long-term consequences, it means we might need to do more active interventions for young workers during recessions to make sure that they're not left behind.' Read on...

Illinois News Bureau: Research - Young workers hit hardest by slow hiring during recessions
Author: Phil Ciciora

Mohammad Anas Wahaj | 22 may 2016

According to the latest report by PwC, 'Connecting the World: Ten Mechanisms for Global Inclusion', providing internet connectivity to the remaining 4.1 billion people and bringing them online would increase global economic output by US$ 6.7 trillion. It will lift 500 million people out of poverty over five years. The report says that affordability, rather than infrastructure and availability, is the main barrier to internet adoption in most areas. Therefore, the report suggests that improvement of existing technology or even simply installing existing technology in developing nations, will be sufficient to achieve the essential cost reduction. The report was prepared for Facebook, that itself advocates cost reduction through Internet.org project. Facebook's approach of limiting the low-cost access to a subsection of the web, giving access to select sites like Wikipedia and Facebook, termed as 'zero rating', has critics in 'net neutrality' advocates like Tim Berners-Lee, who says, 'I tend to say 'Just say no.' In the particular case of somebody who's offering...something which is branded internet, it's not internet, then you just say no.' On the other hand, Jonathan Tate of PwC argues, 'Facebook's approach is worth it in the long term. While zero rating provides access to a slimmer version of the internet than the full web, it's a crucial stepping stone to full access. The important thing here is to get things moving.' Efforts like Google's Project Loon and Facebook's Aquila, are geared to achieve total connectivity by creating 'disruptive technologies'. Read on...

the guardian: Connecting everyone to internet 'would add $6.7tn to global economy'
Author: Alex Hern

Mohammad Anas Wahaj | 03 may 2016

Sir Tim Berners-Lee, inventor of the World Wide Web and founder of the Web Foundation, is concerned about governments not providing open access to their data online. He says, 'The lack of free access to government data - or 'data poverty' - is contributing to widening inequality around the world...Inequality and poverty are about more than income. They are also about information.' Openly published data can help fight corruption and improve services for citizens. It can also be of value in understanding and fighting global warming and related issues like deforestation, floods, fall in crop yields etc. The study by the Web Foundation found that that more than half of the 92 countries it studies now have open data initiatives in place. Moreover, fewer than 10% of the datasets surveyed were open, and most of these are in the rich world, and almost non in African countries. Anne Jellema, CEO of the Web Foundation, says, 'Trying to use traditional data sources to tackle complex development challenges like climate change and hunger is like tunnelling through rock in the dark with a teaspoon. It takes ages and you may come out in the wrong place. Making development data open is vital for fast and accurate collaboration on the SDGs (United Nations Sustainable Development Goals), and the urgency now is to move from promises to implementation.' Read on...

Information Age: Sir Tim Berners-Lee - Data poverty is the next frontier of inequality
Author: Ben Rossi

Mohammad Anas Wahaj | 25 apr 2016

According to a recent study by Prof. Leanne Cutcher of the University of Sydney Business School, a leading expert on intergenerational employment, ageism in the workforce is built on a faulty premise and the most innovative companies are the ones where the age of employees does not matter. Prof. Cutcher says, 'When we say baby boomers are not good with technology and Generation Y don't have enough experience, it becomes a self-fulfilling prophecy. Because people who have good ideas then don't share them because they have been told they are too old. But you are just going to replicate the same ideas where you start labelling people as either too old or too young for a role. Where that is happening, it is stifling knowledge exchange.' Michael Shaw, Executive Vice President Healthcare at Siemens Australia, comments, 'Siemens takes the best people for the job. Personally, for me it's not important if the person is in their 20s or in their 60s, I am simply looking for the best minds with the best attitude.' Another study by Australian Seniors Insurance Agency (ASIA), based on survey of 1200 people across Australia, found that age discrimination at workplace is rife. According to the study, close to half the Baby Boomer respondents claimed they have been turned down for a job since they turned 40, and 3 out of 5 people over 50 said that they faced substantial obstacles in attempts to find a job. The research also found that more than 3/4 of Baby Boomers adapt well to technological innovations, and 73% are actively seeking training opportunities. According to Simon Hovell, spokesman for ASIA, 'The findings point to what many organisations, academics and economists have known all along - Baby Boomers are a real asset to the workplace.' Read on...

The Sydney Morning Herald: Companies that use older workers are the most innovative - New research
Author: Anna Patty

Mohammad Anas Wahaj | 07 apr 2016

This year's World Health Day, that falls today (07 April 2016), has the theme 'Beat Diabetes!'. The World Health Organization has singled out tackling diabetes as one of the most critical healthcare challenge but at the same time tried to give a strong message that it is not too hard to manage if people can put their thoughts and actions in the right direction. Alex Jones, health economist at the social enterprise Oxford Policy Management and researcher at University of the West Indies, provides historial perspective on how international health organizations and governments over time have developed and implemented different types of policies in tackling global health issues. Sometimes they have utilized a single disease approach and at others they have been more holistic and tried to improve health systems around the world. He further explores two approaches and provides opinion on their long-term benefits. According to him, 'A quick look back through history reveals a disturbingly cyclical pattern: As an international community we've been flip-flopping between the two approaches - vertical and horizontal - for at least the last century.' He explains, 'As far back as the 1920s, the sector saw the growth of what was known as the 'Social Medicine Movement' - based on the consideration that ill health could actually be a consequence of poor social conditions...Throughout the first half of the 20th century the Rockefeller Foundation became one of the most influential organisations in global health, implementing programmes in over 80 countries...it always kept the aim of combating specific diseases through targeted campaigns. Post-war politics saw the creation of a number of international agencies that pursued similar vertical programmes...The failure of the GMEP (WHO's Global Malaria Eradication Project) and the relative success of Mao Zedong's community-led 'Barefoot Doctors' programme in China both helped to swing the global health pendulum towards a more horizontal 'systems' approach. In 1975, the WHO launched its Primary Health Care strategy and in 1978 (after sustained advocacy from the Soviet Union) the famous Alma-Ata conference was held...this was a pledge to build up basic health systems around the world...and heralded the birth of the 'Health for All'...The beginning of the 80's, however, saw the pendulum swing firmly back towards vertical interventions...the last ten years have seen a swing back to the ideals of Alma-Ata and the mantra of putting people - rather than pathogens - front and centre of health initiatives...In 2012, the United Nations General Assembly formally recognised and unanimously endorsed the idea of Universal Health Coverage (UHC).' While explaining the current state of health policy focus and interventions, he comments, 'Given the benefit of hindsight, there's a strong risk that today's current focus on UHC might not survive the constant push towards seemingly more feasible, targeted interventions. This apparently inevitable swing to the vertical, however, misses the point on two key fronts: First, history shows us that morbidities are integrated, both with each other and with our ways of life. Second, when something new comes along, a health sector built around a few target pathogens simply cannot deal with it.' Finally, he suggests, 'Let's continue to focus resources where significant advances in disease eradication are possible, partnering with those who can make this happen - but let's take care not to do this at the expense of overall systems strengthening.' Read on...

The Financial Times: Healthcare for all: A zero-sum game?
Author: Alex Jones

Mohammad Anas Wahaj | 04 jan 2016

Economic predictions are hard to make and it is even harder to guarantee their correctness. Falling of oil prices since summer of 2014 and sharp decline in China's economic growth that started recently, were events that analysts hardly predicted and took the world by surprise. And just now the escalating tensions between Saudi Arabia, largest producer of oil, and Iran, may see another swing in the oil prices. But there are signs and signals that can be observed to make a studied judgement regarding the direction of the global economy and how to be prepared in the best possible way to cushion against the shocks. Here are the top five new economic trends for 2016 - (1) The Global Economy Will Continue to Be Powered by America: With other developed economies growing even more slowly and collapse of economic growth in China, US seems to be a ray of hope. As US has largest trade deficit in the world, the other big economies depend on it. (2) China Will Stay Stuck in Second Gear: China's capital investment, both government and private, was enabled by growing debt, rather than profits. The wealth in China must shift to Chinese households, and away from powerful government officials and managers of public enterprises. Which is politically hard to happen soon. (3) Commodities Will Be Cheap: Bloomberg commodities index fell 26% in 2015. Collapse in Chinese growth is the main reason. (4) Europe will edge closer to crisis: European debt crisis continues. Unemployment rate for euro area remains at 10.7%. Imbalances that caused the crisis still are there. Euro binds together diverse set of economies, giving unfair advantage to some. (5) India will become the new growth king: IMF expects Indian economy to grow at 7.3% in 2016. It has advantage of demographics with large workforce and in next 10 years it will grow larger than the Chinese workforce. Read on...

Fortune: These 5 Trends Will Shape the Global Economy in 2016
Author: Chris Matthews

Mohammad Anas Wahaj | 18 dec 2015

Although government of UK states that the creative industries in the country now equal £76.9 billion per year, and the design sector seeing the biggest growth. But there is another debate brewing in UK regarding the condition of design and creative education. According to John Sorrell, founder of London Design Festival and Creative Industries Federation, 'Schools in UK saw a 50% decrease in students taking design and technology GSEC (General Certificate of Secondary Education) subjects in the 10 years leading upto 2013, and 25% drop in other craft-related GCSEs between 2007 and 2013.' He says that the government is reducing investments in creative education that would eventually lead to inadequate development of the next generation of creative talent. He explains, 'It is the government's calling card everywhere in the world...it's this amazing work we're part of which makes Britain so loved by the rest of the world - our creativity.' He further adds, 'If we can get our act together and work together we can take advantage of the opportunities in international development that certainly China is going to be doing in the next 20 years.' Similar sentiments were recently voiced by this year's London Design Medal winners, Edward Barber and Jay Osgerby, who said 'UK government doesn't value the role of creativity.' Another angle to this debate was provided by inventor James Dyson, who criticized the UK government's steps regarding the foreign students to return home after completing their education. This immigration plan will threaten UK's status as a global design and architecture center. Read on...

dezeen: Design education in the UK is being "marginalised" says John Sorrell
Author: Dan Howarth

Mohammad Anas Wahaj | 13 dec 2015

It has been observed in many cases that science fiction writers have talked about products that became reality later on. For example earbud headphones were first mentioned by Ray Bradbury in his classic novel 'Fahrenheit 451'. Emphasis on technological development and advancement is also part of economic agendas of many nations. Japan is one country that gives siginificant importance to merging technology with social and economic development. Japanese Prime Minister Shinzo Abe and his economic roadmap, often termed as 'Abenomics', puts technologies like Internet of Things (IoT), big data, robotics and artificial intelligence (AI) at the core of his revitilization strategy. Japan leads the world with its strength in robotics by bringing out the first personal robot 'Pepper'. But the robot lacks the expected intelligence as it couldn't pass the Turing Test which is a benchmark in AI to determine how close the machine thinks like humans. Although Japan's strength in industrial robotics is visible but it lags the advancements in IoT, big data and AI. According to Prof. Mitsuru Ishizuka of Waseda University and University of Tokyo, 'Japan is considerably behind the United States in 'deep learning', a central technology in AI, although the country is working hard to catch up...These companies (Google, Facebook, IBM etc) can invest big money in AI and add the resulting new values to their services. In Japan, there are much smaller companies with specific AI technologies.' IBM developed Watson, an AI computer, and over the years it has evolved into multiple applications. The computer's core framework reflects human decision-making (observe, interpret, evaluate, decide) but its data crunching abilities are incomparable. William Saito, Japanese entrepreneur and professional cook, utilized Watson to prepare some unique recipes. Citing Watson's strengths in IoT, big data and AI, Mr. Saito comments, 'Combine Watson with a refrigerator, for instance. You go to your refrigerator and it gives you a recipe based on the food in the fridge prioritized by expiration date.' Japan's focus on creating cyborgs (humans with mechanical parts) is also understandable considering its ageing population and growing need for assisted living. Toyota is collaborating with Stanford and MIT on technologies with emphasis on creating automobiles that assist the driver for safer travel, contrary to the approaches of Google and Tesla Motors that are working on driverless cars. Mr. Saito believes that Japan has to come out of its 'Galápagos Syndrome' and strike a balance between logic and creative thinking and move from electro-mechanical robotics to thinking and self-learning machines. Prof. Masakazu Hirokawa, AI researcher at University of Tsukuba, expresses similar views on Japanese model that focuses more on technology that addresses social issues and is less about creating global solutions. He comments, 'We have the hardware to be able to do it, but the important thing is developing the software...I'm trying to create algorithms that help robots learn and predictively determine what and how humans want them to act through experience-based inferences.' Read on...

JapanToday: Artificial Intelligence - Can Japan lead the way?
Author: Richard Jolley

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