It will be necessary to rebuild textile factories like this one in Haiti, as well as build more of them. Photo: NewsHour (flickr)

For aid workers and development experts, simply restoring Haiti to its pre-quake conditions will not be enough. Even before the earthquake about half of the population did not have access to clean water and 90 percent of children suffered from water-born illnesses, reported PRI.

What will it take for conditions to improve? Many argue that a robust private sector will be a key part of the country's long-term recovery and ascent out of poverty. As New York Times columnist Nicholas Kristof opined, "Haiti desperately needs new schools and hospitals, but also new factories." The government services and infrastructure that NGOs and development agencies will help rebuild may provide the groundwork for a healthy economy, but their efforts cannot by themselves make it grow.

The country actually has several factors that amount to unusually good conditions for economic development, argued a report for the UN last year. Unlike many disaster zones, Hait's neighboring countries are stable, while its political leadership "is good by the standards of most post-conflict situations." Haiti's wealthy expatriate community in the U.S. and Canada funnel cash and investments there. (They contributed approximately $1.3 billion in 2008.) Some types of investment look particularly auspicious: Haiti's special trade agreements with the U.S. mean it can export goods there duty-free, making the country "the world’s safest production location for garments," while the labor it would provide manufacturers is the cheapest in the region. Significant barriers to economic growth remain, but Haiti has some often-overlooked advantages in the struggle to recover.

What do you get when you put together a small environmentally friendly Ethiopian business, a trendy-looking product, and a huge international retailer together? In the case of the company soleRebels, you get a hit!

SoleRebels founder Bethlehem Tilahun Alemu came up with the idea for her company out of a desire to make a shoe based on the flip flops made of old tires that had been worn by Ethiopians for decades, she explains to the Guardian. But instead of focusing on the local market, Alemu had her sights on the international market.

She used the internet to contact retailers and eventually companies like Urban Outfitters and Amazon.com started selling soleRebels. Her company now employs 45 workers and they can produce up to 500 pairs of shoes in a day. Sales are growling steadily, and Alemu has plans to expand: Her sales goal for 2010 is £300,000 ($479,760).

The company's progress signifies more than just a desire to for commercial success; it's a way for Ethiopians to help each other. "In Ethiopia we have become used to taking money from the west, to always getting help," said Alemu. "That does not make for a sustainable economy. We need to solve our own problems."

SoleRebels footwear is based on the sandals made from used tires that Ethiopians have worn out of necessity. Photo: soleRebels

It's hard enough to keep a business afloat these days, much less develop a hit product for one of the largest department store chains in the U.S. But that's exactly what the women of Rwanda are doing with a basket weaving business whose end product is sold in Macy's, reports CBS news.

It certainly isn't your average African aid project. When Terry J. Lundgren, Chairman and CEO of Macy's, first heard about the project from American founder Willa Shalit, he expected to see a charity. What he got instead was a proposal.

"I was prepared to make a donation," he said. "And [Shalit] said, 'no no. We don't want a donation, we want a business.'"

It's precisely this business aspect that makes the project sustainable. Last year, the women sold 40,000 baskets in the U.S., and their income is double the Rwandan national average. (View a photo essay about the weaving process here).

You can learn more about these inspiring women in this video:

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What will the growth of the Mongolian mining industry mean for the country's nomadic herders? Photo: Thatcher Cook for Mercy Corps

Mongolia could soon be home to the largest copper mine in the world.

After years of negotiations, Western mining companies Rio Tinto and Ivanhoe are close to reaching an agreement with the Mongolian parliament to develop significantly the Oyu Tolgoi mine. Mineweb reports that the untapped deposit contains 78 billion pounds of copper and 45 million ounces of gold. If all goes to plan, the massive investment would double the size of Mongolia's economy and create thousands of jobs, according to NPR.

The economic crisis has hit Mongolia harder than most countries in East Asia. One in four people are out of work, NPR reports. The country’s nomadic herders – 40 percent of the population – are struggling after the price of cashmere dramatically declined earlier this year (see Manasi Sharma’s Downturn in the Gobi). Now, some are hailing Oyu Tolgoi as an immediate economic fix.

But there are several obvious challenges. First, Mongolia is highly corrupt. It is ranked 102 out of 180 countries in the latest Transparency International index, an annual rating of perceived levels of corruption (defined as the abuse of public office for private gain). Additionally, the editorial in Mineweb suggests that Russia and China may have inordinate influence over Mongolia’s mining industry. Given these two factors, how much will the average Mongolian gain?

Lastly, there are the social implications of this investment to consider. For many nomadic herders, shifting to industrial mining jobs is far from ideal, but there isn’t much else to turn to. People are desperate now that raw cashmere and other materials do not provide a reliable way to feed and clothe families. "They are losing their land, their animals, and even their culture," reported NPR’s Louisa Lim, "for a few specks of gold."

The G-20 is meeting this week in Pittsburgh, Pennsylvania. Chaired by President Barack Obama, the purpose of the summit is to, “review the progress made since the Washington and London Summits and discuss further actions to assure a sound and sustainable recovery from the global financial and economic crisis.” I’ve heard of the G-8, but the G-20? I began to wonder about this alphanumeric soup of organizations. Who are they and what are they concerned with? The following scorecard should help interested followers of this subject keep track of the major players.

The G-6: Organized in 1975 by the finance ministers of Germany and France who were frustrated with the formality and structure of larger international meetings, the G-6 and subsequent evolutions of this body are strictly informal bodies that meet to discuss economic issues of mutual interest. After the creation of the G-8, the term G-6 is now used to refer to the six most populous members of the European Union. The member countries are: the United States, United Kingdom, France, Germany, Italy, Japan

The G-7: Formed in 1976, this is an informal forum for the finance members of seven big industrial economies to discuss economic issues and seek agreement. Member countries include: Canada, France, Germany, Italy, Japan, United Kingdom, United States. Now also includes the European Union.

The G-8: An evolution of the G-7, membership grew to include Russia. The European Union is a limited member; it cannot host a meeting or hold the presidency of the body. Members are: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member)

The G-8 plus Five: Recognizing the growing influence of other countries, the original group sometimes broadens their meetings by including the Outreach Five. As with all meetings, other countries are sometimes invited to attend. Members: Canada, France, Germany, Italy, Japan, United Kingdom, United States, Russia. European Union (limited member) Plus: Brazil, China, India, Mexico, South Africa.

The G-20: According to their website, “[t]he G-20 was created as a response both to the financial crises of the late 1990s and a growing recognition that key emerging-market countries were not adequately included in the core of global economic discussion and governance.” Where the earlier groups (G-6 through G-8) were organized around the industrialized countries of the world, the G-20 begins to bring emerging economies into the dialog. Their first meeting was in Berlin, Germany. The Managing Director of the International Monetary Fund (IMF) and the President of the World Bank, plus the chairs of the International Monetary and Financial Committee and Development Committee of the IMF and World Bank, also participate in G-20 meetings on an ex-officio basis.

The G-20 is made up of the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, United States, European Central Bank

The G-33: The name for a group of developing countries that coordinates on trade and economic issues. It was created in order to help group countries which were all facing similar problems and give a unified voice to countries that were traditionally excluded from discussions among the industrialized countries. Members: Antigua & Barbuda, Barbados, Belize, Benin, Botswana, China, Côte d’Ivoire, Cuba, Democratic Republic of the Congo, Dominican Republic, El Salvador, Grenada, Guyana, Guatemala, Haiti, Honduras, India, Indonesia, Jamaica, Kenya, Laos, Mauritius, Madagascar, Mongolia, Mozambique, Nicaragua, Nigeria, Pakistan, Panama, Peru, Philippines, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, Senegal, South Korea, Sri Lanka, Suriname, Tanzania, Trinidad & Tobago, Turkey, Uganda, Zambia and Zimbabwe.

There are other groups variously labeled as G-8, G-20, G-33, and even N-11 (countries which Goldman Sachs considered in 2005 to have a high potential of becoming the world’s largest economies this century: Bangladesh, Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan, Philippines, South Korea, Turkey and Vietnam).

One of the best, reliable, sources of information about these groups and their members may be found on the websites of the World Trade Organization and the previously mentioned G-20.

You can Track the ongoing discussions of the Pittsburgh G-20 Summit here. But be prepared for slow page loading. It is a very busy website.

Iraq's most lucrative export after oil - dates - has seen declining production since the American-led invasion began in 2003. Photo: Ikhlasul Amal (flickr)

The U.S.-led invasion of Iraq in 2003 and the subsequent violence has left the country struggling to survive. Now, Iraq’s economy is suffering even more due to declining production in one of its most thriving exports after oil: dates.

Dates are highly nutritious and a staple food in Iraq. Before the war, a typical palm tree was yielding 130 – 175 pounds of dates per year, compared to only 30 pounds of fruit last year, reports the New York Times. The country used to produce about 75 percent of the world’s dates at one point, but today Iraq has fallen behind many other Arab countries leading in date production.

The lack of “sufficient electricity, machinery and a drought” has severely damaged the agricultural industry, says Iraqi economist Ghazi al-Kenan. Prior to the U.S.-led invasion, there were more than 150 date processing factories. Today there are six.

Another factor contributing to the decline in date production is that the country's trade ministry — which is responsible for buying agricultural products for export from farmers — isn't purchasing dates at a high enough price to cover production costs for farmers, reports the New York Times.

But the decline in date production is causing more than just agricultural and economic problems for Iraq. Public health and the environment are also feeling the effects. Baghdad has experienced more sand storms, increased asthma cases and respiratory illnesses due to the shrinking of depleted farms and orchards surrounding the capital.

With the global economic downturn affecting oil prices, prospects for the date industry are looking grim. The Trade Ministry tells the New York Times that "it cannot afford to raise payments to farmers.”

An Israeli checkpoint in Nablus, West Bank. Photo: David Ortmann (flickr)

Since Israel relaxed West Bank checkpoints in June, there's been a newfound sense of both security and economic freedom for the struggling Palestinian territory, according to the New York Times' Thomas Friedman.

Friedman says the economic improvement is largely a result of reformed police tactics and increased trade:

For Palestinians, long trapped between burgeoning Israeli settlements and an Israeli occupation army, subject to lawlessness in their own cities and the fecklessness of their own political leadership, life has clearly started to improve a bit, thanks to a new virtuous cycle: improved Palestinian policing that has led to more Palestinian investment and trade that has led to the Israeli Army dismantling more checkpoints in the West Bank that has led to more Palestinian travel and commerce.

Recent statistics for the West Bank support the claim that things are getting better. The International Monetary Fund is forecasting 7 percent growth, and construction is about to begin on the first new town in decades, according to a New York Times account.

Friedman is hopeful that economic improvements could lead to political gains:

Make no mistake: Palestinians still want the Israeli occupation to end, and their own state to emerge, tomorrow. That is not going to happen. But for the first time since [the collapse of the 2000 Oslo peace accords], there is an economic-security dynamic emerging on the ground in the West Bank that has the potential — the potential — to give the post-Yasir Arafat Palestinians another chance to build the sort of self-governing authority, army and economy that are prerequisites for securing their own independent state. A Palestinian peace partner for Israel may be taking shape again.

A man models the "Zambulance," a bike-drawn ambulance designed with expecting mothers in mind. Photo: bbc world service (flickr)

Families in poor countries can save up to 30 percent of their transportation costs by doing one simple thing: buying a bicycle. World Bicycle Relief, a U.S. organization whose mission is to provide third world countries with bikes, notes that sustainable transportation is absolutely essential to disaster and poverty relief. Bikes help people access health care, schools and get to work.

Recognizing this, two guys from California teamed up with two Zambians to start Zambikes in Lusaka, Zambia. The for-profit company is putting a twist on the bicycle as we know it. Zambikes look like regular bicycles but instead of using metal, Zambikes are made by locals out of Bamboo. Not only is Bamboo cheaper then metal, it's also very strong and light-weight, and its vibration-dampening properties work well for the rough roads of Zambia.

The company also makes a cargo bike, a bike trailer ("Zamcarts") and a bike-drawn ambulance ("Zambulance") which is used in 10 area clinics — out of bamboo (check out more photos here). So far 1,200 bicycles and 153 "Zamcarts" and "Zambulances" have been sold. The company has also started teaching bicycle mechanic classes.

Sugar is a popular commodity in India, where imports are expected to rise as droughts cause sugar prices to rise by 50 percent. Here vendors make sugar cane juice. Photo: Jim-C (flickr)

Sugar rushes tend to be followed by sugar crashes.

The western Indian state of Maharashtra has been called the "sugar bowl" of India, but that may be changing. A New York Times video sheds some light on the problems farmers in Maharashtra face as sugar production decreases, causing prices to rise.

India is the world's second-largest sugar producing country. But factors like insufficient rainfall, small plots of land and government regulation of the market are impacting sugar production in India and therefore driving up the price, making imported sugar a more affordable option in India.

Many African countries, like Madagascar pictured here, are increasingly leasing land to foreign firms, but critics argue the deals are exploitative. Photo: goukley (flickr)

A million hectares in Uganda. Some 690,000 hectares in Sudan. And 500,000 hectares in Tanzania. These are just a few of the numbers that have appeared on the bargaining table in the past year as foreign firms scramble for land leases in Africa.

The Independent takes a look at the phenomenon known as "land grabbing," or the recent trend of foreign governments and corporations leasing or purchasing large swaths of land in poorer countries to grow food or other crops for export back to their home country. The phenomenon is most prevalent in Africa, but leases have been sought elsewhere, including the Philippines and Pakistan.

[The sudden increase in "land grabbing"] has its roots in the food crisis of 2007/8, when prices of rice, wheat and other cereals skyrocketed across the world, triggering riots from Haiti to Senegal. The price spike also led food-growing countries to slap export tariffs on staple crops to minimize the amounts that left their countries. That tightened the supply still further, meaning food prices were driven up more by a situation of policy-created scarcity than by supply and demand.

This situation also made many rich countries that are reliant on massive food imports question one of the fundamentals of the global economy: the idea that every country should concentrate on its best products and then trade. Suddenly having unimaginable quantities of cash from oil was not enough to guarantee you all the food you needed. The oil sheikhs of the Gulf states found that food imports had doubled in cost over less than five years. In the future it might get even worse. You could no longer rely on regional and global markets, they concluded. The rush to grab land began.

Investors say they will bring needed infrastructure, technology and employment, but in some cases, these investments have been met with resistance. Riots erupted earlier this year in Madagascar, where almost half the children under age five don't get enough to eat. The riots were driven in part by the news that the government had given South Korean firm Daewoo a 99 year lease over 1.3 million hectares of land. On an area amounting to half the island's arable land, Daewoo planned to grow maize and palm oil solely for export to South Korea. The deal fell through when the riots forced the president, Marc Ravalomanana, out of office, BBC News reports.

Nevertheless, land grabbing is poised to continue at a rapid pace, according to The Independent:

The government of President Ravalomanana became the first in the world to be toppled because of what the United Nations' Food and Agriculture Organization recently described as "land grabbing." The Daewoo deal is only one of more than 100 land deals which have, over the past 12 months, seen massive tracts of cultivable farmland across the globe bought up by wealthy countries and international corporations. The phenomenon is accelerating at an alarming rate, with an area half the size of Europe's farmland targeted in just the past six months.

Critics question the truthfulness of the investors' promises. The head of the UN Food and Agriculture Organization, Jacques Diouf, warned that land grabbing is simply neo-colonialism, and Africa will again be exploited for its resources while seeing little direct revenue.

The Independent offers an analogy from international development policy consultant Mark Weston for understanding the current nature of the leases and what makes them magnets for controversy:

Imagine if China, following a brief negotiation with a British government desperate for foreign cash after the collapse of the economy, bought up the whole of Wales, replaced most of its inhabitants with Chinese workers, turned the entire country into an enormous rice field, and sent all the rice produced there for the next 99 years back to China.

Imagine that neither the evicted Welsh nor the rest of the British public knew what they were getting in return for this, having to content themselves with vague promises that the new landlords would upgrade a few ports and roads and create jobs for local people.

Land grabbing is just one aspect of the current discussion about agricultural development in Africa. When U.S. Secretary of State Hillary Clinton visited Kenya earlier this month she voiced interest in Africa's agricultural potential: "More and more, the world will look to Africa to be its breadbasket, and I hope that when the world looks ... it is Africans and African farmers who will profit from becoming the world's breadbasket."

Photo: blentely(flickr)

We may be in the midst of global recession, but if countries react by curbing their trade with each other, it will only hurt the poorest among them.

That's the gist of the message delivered by Pascal Lamy, director-general of the World Trade Organization, in a recent Wall Street Journal opinion piece.

History tells us that no poor country has ever become wealthy without trade, Moreover, many developing country success stories — Singapore, South Korea, Chile, China and Malaysia, to name only a few — have, in recent decades, seen their national incomes grow by a percentage point or more per year as a result of open trade policies than would [not] have been the case had they remained closed. The extra funds generated during this period have enabled them to respond to the crisis with stimulus packages that have prevented the crisis from turning into a protracted recession with its inevitable human costs.

In 2005, the WTO adopted an initiative called "Aid for Trade" to support and encourage trade. The initiative does two things: It funds infrastructure projects like roads and electrical grids, and trains exporters on how to comply with the safety and quality standards of other countries.

This week the WTO is convening in Geneva with select development banks and aid organizations for Aid for Trade's annual review. In his Wall Street Journal opinion piece Lamy tells us that, "we have to make sure [Aid for Trade] is more and more effective in helping developing countries overcome their economic difficulties. It's what people expect from us today."

Changing the dates of the weekend in Algeria has been endorsed by the World Bank. Photo: Radio Nederland Wereldomroep (flickr)

The Algerian government hopes to boost the country's economy by shifting the weekend from Thursday and Friday to Friday and Saturday. The change comes after 33 years of Thursday-Friday weekends.

Because most other countries observe Friday and Saturday as the weekend, Algeria operates out of sync with its trading partners. The government expects the date change will add $800 million to Algeria's annual gross domestic product.

The interior of a number 2 subway train in NYC. Photo: Kevin H. (flickr)

Jeton Qallaku, a Bronx resident, sends about three percent of his $60,000 salary back to his parents and sister in Kosovo each year. Qallaku's family mostly uses these remittance payments to keep up with their water, sewage, and electricity bills.

Jeton immigrated to New York from Kosovo in 1996, and has been sending money home ever since. Kosovo is one of the most remittance-dependent countries in the world. In 2008, remittances from Kosovar Albanian migrants accounted for 13 percent of the country's economy, according to World Bank figures. In that same year, global remittances totaled $308 million, a record high. But in the past year and a half, remittances have taken a hit as the world reels from the economic crisis.

Jounalism students at Columbia University teamed up with GlobalPost.com to profile New York area migrants to learn how the economic crisis is affecting their capacity to send money home. The students captured stories from migrants while traveling along New York's #2 subway line, which connects Brooklyn to the Bronx. Jeton's story is one of many included in this project, entitled "Payback: Remittances in New York City," but the project also features stories of migrants from Ghana, Haiti, Kosovo Albania, Mexico, Yemen, Pakistan and China. These very personal stories are told through video content and interactive maps.

China's Three Gorges Dam, the world's largest hydro-electric power station. Photo: PVCG (flickr)

Can China go green without disrupting their economic growth?

Fossil fuels provide most of the energy powering the world’s post populated country, but last month China committed to producing more energy from cleaner sources.

Liu Zhenya — the president of China's largest electric provider — said that China aims to produce 35 percent of its energy from "low-emissions" sources by 2020 at a press conference in Beijing, tells Bloomberg.com.

China is currently the world's leader in renewable energy production. However, a study by Wharton University shows that low emissions sources like hydro-electricity, wind power, and solar power make up only 8 percent of the nation's total energy capacity.

China’s demand for energy is expected to double over the next decade as well — increasing consumption rates, massive amounts of industrial exports, and construction growth could potentially push electricity consumption to nearly 8 trillion kilowatt-hours a year. At that rate China would consume twice as much the United States, which is the next biggest energy consumer after China.

Considering that China’s growth in energy consumption has more than tripled the world’s average in past years and nearly 90 percent of China's energy still comes from coal and oil, the Wharton University report estimates that the nation will need $3.7 trillion to maintain its projected energy growth.

For China, the numbers don’t add up. Their demand for energy is going to double over the next eleven years and the majority of their energy capacity is highly dependent on coal. The climb to 35 percent is either going to be relatively steep or they are going to spend a lot of money converting fossil fuels.

Idle mining cars on a train track in La Oroya, Peru. Photo: Max Opp (exoppholdsvaer) (flickr)

La Oroya, Peru, is one of the ten most polluted places in the world, according to the Blacksmith Institute, a New York-based global health agency.

The pollution is caused by a smelter owned by Doe Run Peru, which melts and purifies metals from the mountains surrounding La Oroya. The process is highly toxic: It's estimated that the smelting process emits 890 tons of sulfur dioxide every day.

Today, the area is plagued by acid rain and pollution, among other health and environmental problems. A recent article by the New York Times cited a 2005 study by Saint Louis University that estimated that 97 percent of children under six in La Oroya have lead poisoning, which can cause seizures, anemia as well as problems with the brain and kidneys.

Financially, however, the community needs Doe Run Peru since the majority of residents rely in some way on the smelting plant to earn a living, says the New York Times. About 3,000 people work in the actual plant, and other thousands make a living from selling food to workers and cleaning uniforms.

Community members say they want environmental conditions to improve, but cannot afford to see the jobs go elsewhere. They share their opinions in this video from the U.S. environmental law firm Earthjustice.