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Poorest Countries Being Harmed by Euro Currency Crisis

By David South, Development Challenges, South-South Solutions

New UNOSSC banner Dev Cha 2013

SOUTH-SOUTH CASE STUDY 

The ongoing economic crisis in Europe is forecast to harm the economies of the world’s poorest countries if it continues, according to a study by the United Kingdom’s Overseas Development Institute (ODI) (odi.org.uk).

As an example, Kenya’s shilling currency has weakened and increased the cost of imports, leading to a surge in inflation, while the number of European tourists has declined, according to Business Daily.

Raging since 2009 (http://www.bbc.co.uk/news/business-13856580), the eurozone crisis has seen several European countries struggling to pay debts built up during the boom years, and this has threatened the currency compact among countries that use the euro single currency (http://www.ecb.europa.eu/euro/html/index.en.html). Several countries have introduced harsh austerity measures to try and rein in the debts and stabilize economies while keeping countries within the eurozone.

This has had the consequence of dramatically raising unemployment levels, reducing consumption of goods and services and increasing poverty rates in many European countries. Some governments have responded by reducing the amount of legal labour migration allowed into their countries.

The study estimates that the euro crisis could amount to a loss of US $238 billion for poorer countries from 2012 to 2013 as aid, trade, investment and remittance payments sent home to relatives and friends are damaged by the crisis.

This would particularly harm export-dependent, emerging-market countries. The study found demand was weakening for products from low and low-to-middle income countries. This would in turn harm growth in these countries. Growth in the past decade has helped many countries lift millions of people out of poverty and enabled the growth of new middle classes, who in turn use their rising incomes to purchase consumer goods and invest.

The crisis will cause developing countries’ currencies to drop in value if they are pegged to the euro, and for countries to be economically harmed because of austerity policies in European countries, said the study’s author, Dr. Isabella Massa.

“The EU remains the largest single export market for poorer countries, although it is the emerging BRIC economies which are their main source of imports.”

The European Union (EU) (http://europa.eu/index_en.htm) is the biggest market in the world and the largest importer of goods from developing countries. The ODI report found a 1 per cent drop in global export demand has the knock-on affect of reducing growth in poor countries by 0.5 per cent. The countries most at risk from the crisis are Mozambique, Kenya, Niger, Cameroon, Cape Verde and Paraguay.

For example, 17 per cent of Ivory Coast’s exports go to the EU. Mozambique sends 14 per cent of its exports to the EU and Nigeria sends 10 per cent.

Tajikistan in Central Asia was the most highly dependent economy on remittance payments from its workers living outside the country to prop up its GDP (gross domestic product). Remittance payments from Tajik citizens outside the country made up 40 per cent of GDP.

Liberia and the Democratic Republic of Congo were both heavily dependent on foreign direct investment (FDI) from Europe in 2010.

Many countries have also grown used to strong demand for their resources in recent years as China has rapidly developed and urbanized, sucking in more and more resources from around the world, including sub-Saharan Africa.

“Poor countries are vulnerable to the euro crisis not only because of their exposure (due to dependence on trade flows, remittances, private capital flows and aid) but also because of their weaker resilience compared to 2007, before the onset of the global financial crisis,” said Massa.

“The ability of developing countries to respond to the shock waves emanating from the euro area crisis is likely to be constrained if international finance dries up and global conditions deteriorate sharply.

“The escalation of the euro crisis and the fact that growth rates in emerging BRIC economies, which have been the engine of the global recovery after the 2008-9 financial crisis, are now slowing down make the current situation really worrying for developing countries.”

Despite the gloom, there are many positive and powerful antidotes to this economic crisis, including rising South-South trade and innovation, which shows it is possible to reduce dependency on wealthy-developed countries alone for economic prosperity.

Published: September 2013

Resources

1) UNRISD: United Nations Research Institute for Social Development: The United Nations Research Institute for Social Development (UNRISD) is an autonomous research institute within the UN system that undertakes multidisciplinary research and policy analysis on the social dimensions of contemporary development issues. Website: unrisd.org/

2) The Global Urbanist: News and analysis of cities around the world: planning, governance, economy, communities, environment, international. Website: globalurbanist.com

3) OECD: The global economic crisis is entering a new phase amid signs of a return to positive growth in many countries. But unemployment is likely to remain high and much still needs to be done to underpin a durable recovery. This website will track the recovery. Website: http://www.oecd.org/general/tacklingthecrisisastrategicresponse.htm

4) African Union: This vision of a new,  forward looking, dynamic and integrated Africa will be fully realized through relentless struggle on several fronts and as a long-term endeavor. The African Union has shifted focus from supporting liberation movements in the erstwhile African territories under colonialism and apartheid, as envisaged by the OAU since 1963 and the Constitutive Act, to an organization spear-heading Africa’s development and integration. Website: http://www.au.int/en/

5) Youth-Inclusive Financial Services (YFS-Link) Program website: The first space for financial services providers (FSPs) and youth-service organizations (YSOs) to gather, learn and share about youth-inclusive financial services. Website: http://www.makingcents.com/ourWork/yfsLink.php

6) Triple Crisis Blog: Global Perspectives on Finance, Development and Environment: Website: http://triplecrisis.com/

7) African Economic Outlook: A unique online tool that puts rigorous economic data, information and research on Africa at your fingertips. A few clicks gives access to comprehensive analyses of African economies, placed in their social and political contexts. This is the only place where African countries are examined through a common analytical framework, allowing you to compare economic prospects at the regional, sub-regional and country levels. Website: africaneconomicoutlook.org/en

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The South has a Good Story to Tell

By David SouthDevelopment Challenges, South-South Solutions

SOUTH-SOUTH CASE STUDY

The fast-changing modern world is raising the living standards of billions in the South – China alone has lifted 400 million people out of poverty since the 1980s – but it is also risking the loss of many rich cultural traditions. One of them is storytelling.

Oral storytelling is a critical tool for passing on history, while teaching morals and ethics, especially in societies with low rates of literacy and little formal education. But with the rise of modern media and advertising, few traditional storytellers – many of whom are old – stand a chance. Populations are on the move like never before. As more and more people end up in sprawling cities, many are becoming disconnected from their roots.

Yet across the South, people are finding ways to re-invent story telling — and also to make money, preserve cultural pride and feed the appetite for novelty in hungry, modern media and business.

In 1997, storytelling was acknowledged by UNESCO, which pledged to back humanity’s oral and immaterial heritage, and to protect a vast number of oral and musical traditions, crafts and knowledge – plus the “living human treasures” who possess them. It backed this up in 2003 with the Convention for the Safeguarding of Intangible Cultural Heritage. It supports storytelling through its International Programme for the Development of Communication.

But what about the young – the most important generation for storytelling to have a future? In Bogota, Colombia, students have started a movement of urban storytellers. Aged between 17 and 35, they draw on the things they have learned in university. They eschew linear narration and instead adopt the popular language of films and advertising. Inspired by one television commercial, a story revolves around a drop of tomato sauce falling from a high-rise building, sparking a gun battle. The staccato narrative takes inspiration from post-modern authors like Italo Calvino. It is also the perfect narrative to capture modern, urban audiences who live in a world saturated with media.

By blending together ancestral and post-modern tales, these student storytellers are luring Latin Americans back to listening to stories. Live storytelling, when done well, has an ability to connect with other people like no other medium. This new generation also is helping make Colombia a gathering place for storytellers in Latin America, expressed in events like the Hay Festival Cartegena, a literary event that draws authors from around the world.

But is there any money in storytelling? Tale-spinners like Argentinian Juan Moreno say yes. Moreno quit teaching 17 years ago to tell stories for money in theatres, bars, universities and libraries, tapping into a contemporary marketplace for storytelling.

In fact, it is better paid than acting in the theatre, he claims, and if you are good, it comes with lots of travel. There is a global round of congresses, festivals and seminars to keep storytellers connected, inspired – and paid.

Moreno now makes money teaching many professions how to use stories to be more powerful communicators. He told the UNESCO Courier, “the value of the spoken word, words that heal and restore, that can give life but also take it away,” are key to many fields, like law and social work.

The world centres of storytelling are very much focused on the South. The International Congress of Oral Storytelling, part of the Buenos Aires Book Fair, has been running every year since 1995. At the Congress, tips are exchanged over the subtle tricks of timing and voice, gestures and facial expressions. Other Southern cities with storytelling events, include Bucaramanga, Colombia, Monterrey, Mexico and Agüimes, in the Canary Islands.

While young people are breathing new life into storytelling, Morocco’s legendary storytellers have been facing a common dilemma seen across the developing and developed world: how can they compete with flashier and more distracting pastimes like computer games and TV?

Illiteracy in Morocco affects 40 per cent of the population, so telling stories is an excellent way to reach this non-reading group. Stories and parables have long been seen as a great way to convey ideas, values and philosophies.

But Morocco’s storytelling sages, or halakis, are using their heads and turning to computers to get their stories told, and prevent their thousand-year tradition from dying out. With the help of UNESCO, the halakis have created a digital archive of their stories in audio and video.

Based in Marrakesh’s famous main square, Jemaa al-Fna, they compete in a hury burly of street entertainers and aromatic foods; it is a place where men with monkeys vie with snake charmers for your attention. Morocco’s storytellers would set up in the public squares of the cities of Fes, Meknes and Marrakesh to entertain crowds and educate about morality. These would include the ethical values of kindness, honour and chivalry. But Marrakesh is now the only place where a half dozen old men (there used to be 20 in Marrakesh) still practice this ancient art form.

UNESCO declared the square in 2001 part of the world’s “Oral and Intangible Heritage of Humanity.” Video recorders have been documenting the storytellers and chronicling them on the internet.

Spanish writer Juan Goytisolo, who spends part of his year in Marrakesh, has championed the halakis in his book, Marrakesh Tales, and in bringing UNESCO in to help them. He has defended their corner against the plans of city planners and developers.

Seventy-one-year-old Moulay Mohammed is blunt about the current state of storytelling: “Young Moroccans would rather watch TV soap operas than listen to a storyteller, much less become one themselves,” he told the BBC. Mohammed’s stock-in-trade is the Old Testament and all of A Thousand and One Nights: both tales of sultans, thieves, wise men and fools, mystics, genies, viziers and belly dancers. And he has been telling these tales for 45 years.

In South Africa, digital technology is also breathing new life into storytelling – and infusing the stories with urgent, contemporary issues like HIV, and domestic and sexual violence. South African women are using digital technology to preserve traditional storytelling: A collection of 15 digital stories – called “I Have Listened, I Have Heard” – made in 2006 are being distributed along with books. They assembled the stories using audio recorders and made movies of the readings with digital cameras. It was funded by the Foundation for Human Rights and made at the Women’s Net Computer Training Centre in Johannesburg.

The storytellers worked together on each script, taking a day. They would tell the group a story focusing on particular experiences or meaningful moments in their lives. The group would comment and draw out the best bits of the story. The whole process helps the story teller to flesh out the story with metaphors, narrative techniques and milestones.

Resources

  • The basics of story telling are answered in this webpage: www.timsheppard.co.uk
  • Singapore International Story Telling Festival 2008: This year’s festival also includes a new addition: Asian Digital Storytelling Festival
  • International Congress of Oral Storytelling: Held from 2-4 May 2008 in Buenos Aires, Argentina. Website: www.el-libro.org.ar
  • Folk Tales: Online project where Pakistani students and their teachers share folklore and fables with students around the world. Website: www.edutopia.org
  • Thirsty-Fish: Story and Strategy: A consultancy that helps businesses build their brands based on age-old practices of storytelling. Website: www.thirsty-fish.com

“I think you [David South] and the designer [Solveig Rolfsdottir] do great work and I enjoy Southern Innovator very much!” Ines Tofalo, Programme Specialist, United Nations Office for South-South Cooperation

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MOST READ! Southern Innovator Issue 1: Mobile Phones and Information Technology: http://www.scribd.com/doc/57980406/Southern-Innovator-Magazine-Issue-1

Southern Innovator Issue 2: Youth and Entrepreneurship: http://www.scribd.com/doc/86451057/Southern-Innovator-Magazine-Issue-2

Southern Innovator Issue 3: Agribusiness and Food Security: http://www.scribd.com/doc/105746025/Southern-Innovator-Magazine-Issue-3

Southern Innovator Issue 4: Cities and Urbanization:  http://www.scribd.com/doc/128283953/Southern-Innovator-Magazine-Issue-4

NEW! Southern Innovator Issue 5: Waste and Recycling: http://www.scribd.com/doc/207579744/Southern-Innovator-Magazine-Issue-5-Waste-and-Recycling

AWARD-WINNING! GOSH e-Health Project Launch Brochure and Screen Grabs: http://www.scribd.com/doc/20857167/GOSH-e-Health-Project-Launch-Brochure-and-Screen-Grabs

Environmental Public Awareness Handbook: Case Studies and Lessons Learned in Mongolia: http://www.scribd.com/doc/28633063/Environmental-Public-Awareness-Handbook-Case-Studies-and-Lessons-Learned-in-Mongolia-Part-One

In their own words: Selected writings by journalists on Mongolia, 1997-1999: http://www.scribd.com/doc/24832935/In-their-own-words-Selected-writings-by-journalists-on-Mongolia-1997-1999

Mongolian Rock and Pop Book: http://www.scribd.com/doc/23917535/Mongolian-Rock-and-Pop-Book

Mongolian Green Book: http://www.scribd.com/doc/20889227/Mongolian-Green-Book

Mongolia Update 1998 Book: http://www.scribd.com/doc/20864541/Mongolia-Update-1998-Book

Human Development Report Mongolia 1997: http://www.scribd.com/doc/20793173/Human-Development-Report-Mongolia-1997

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