Issue 1: The question of promoting reliable microfinancing practices in LEDCsExpert Chair: Leo Kim

Recent Issues (Failure)• 2010, Indian state of Andhra Pradesh restricted

microfinancing practices after repeated suicide reports from borrowers:– Accused companies for exploitations, harsh collection

tactics, andexorbitant interest rates

– Spread to nearby states likeBangladesh and Pakistan• Bangladesh removed

Muhammad Yunus as thedirector of Grameen Bank,and exerts more control as of now

• Lebanon’s microfinance struggles due to MFIs collapsing, when many burrowers indebted

Recent Issues (success)

• State of the Microfinance Campaign Reports 2006 reports “microcredit is one of the most powerful tools to address global poverty”

• Some MFIs that learned from previous mistakes fixed systems; better results

• Tunisia managed to grow flower-business practicing microfinance

On-going Problems• Report by Youssef Fawaz:– microfinance institutions are struggling as “clients drown

themselves in debt by borrowing money from multiple institutions”• Increased institutions• Absence of regulation & credit

bureaus

– Other issues than multipleborrowings:• Political Instability like Arab Spring:

people became delinquents as theirbusiness suffered

• Economic Instabilities: When stateswith strong trade-ties falters, it alsoinfluences microfinancing practices

On-going Problems (cont.)

• Political reasons:– Some governments discouraged borrowers from repaying

loans due to high interest rates– Some locals strived for political favor and subsidized loans at

below-market rates or gave credit without checking

• Lack of education – some clients do not know how much credit can they manage without indebtingthemselves, and even with finance, they cannot produce competitive products asthey are not so skillful

• Lack of “proper” MFIs: Mostare incapable

General Stance• India: India has the negative view on this issue as its

government does put complaints on MFIs, and there’s the Andhra Pradesh region, which should be paid attention to. Indiaadvocates for changes fromthe current system.

• Bangladesh: Bangladesh isthe origin of microfinance,and recent trends showthat it follows India’sactions, which thegovernment discouragespeople from using MFIs.

General Stance (cont.)

• Neighboring states follow same stance as India and Bangladesh, and discourage microfinance.

• LEDCs: Are in more direneed of microfinancingpractices, as it can workas a key to povertyalleviation.

• MEDCs: Some MEDCs alsopractice microfinance inmeans to help their ownimpoverished citizens

• MFIs: They are crucial to microfinance, yet they are not so regulated, and most MFIs are for-profit, meaning their ultimate goal is not poverty eradication.

Issue 2: The question of preventing religious and racial discrimination in the

workplace

Expert Chair: Samuel Hsia

Recent Issues• Right now, the United States has a workplace

discrimination issue going on: discrimination based on gender and sexuality– Republicans in the House of Representatives are

blocking the Employment Non-Discrimination Act (ENDA)

Recent Issues (cont.)– White House spokesman Jay Carney claims

executive order to end such discriminations is redundant• Causes backlash• Various complaints from LGBT activist groups across the

United States• Human Rights Campaign VP of communications Fred

Sainz disagrees strongly, says that executive order is needed.

General Stance• Currently, the main ongoing issue with

workplace discrimination is happening in the United States right now

• Democrats: They are pushing for the Employment Non-Discrimination Act (ENDA) through Congressional voting procedures

• Republicans: They are voting against the the ENDA• Executive Branch: Taking a more conservative approach

and not involving in manners directly

General Implications• For companies: In general, for companies this means

spending more resources on making and enforcing laws that prevent workplace discrimination – something that the companies may be unwilling to do.

• For the United States government: One main controversy is that once the law is passed, carrying out the law may be much more complicated than expected – the degree of intervention that the USG could have in corporations is still undecided.

• For the discriminated: If passed, this law could could greatly benefit their working experiences.

FAMINE IN HORN OF AFRICA

KEY THINGS TO KNOW

• Drought occurred at the end of 2010• This problem is affecting more than 13 million people in

the region (which includes Djibouti, Ethiopia, Eritrea, Kenya, Somalia, Sudan and Uganda – the poorest region in the continent)

• The main causes for this problem are:– Shortage of food– Climate change– Agricultural policy– Military conflicts– Effects of global markets on local economies

KEY THINGS TO KNOW

• More than 40% of the population of the Horn of Africa are living in areas where there are severe food shortages

• Many farmers are dis-incentivized from growing food because of cheaper imports – this hurts their local markets and the governments don’t do much to stop this

ORGANIZATIONS

• World Food Programme• UNICEF– From 2011 to now, number of people in need of

assistance has decreased from 13M to 8M• There are many organizations that are

donating food and necessities to these people in the region, but the ones listed are the biggest ones

SOURCES THAT MAY BE HELPFUL TO YOU AND YOUR RESEARCH

Rice, Xan. "Hunger Pains: Famine in the Horn of Africa." The Guardian: n. pag. The Guardian. Web. 1 Apr. 2014. <http://www.theguardian.com/global-development/2011/aug/08/ hunger-pains-famine-horn-africa>.

Stastna, Kazi. "Horn of Africa Famine as Much about Geopolitics as Drought." CBC News: n. pag. CBC News. Web. 1 Apr. 2014. <http://www.cbc.ca/news/world/ horn-of-africa-famine-as-much-about-geopolitics-as-drought-1.1027406>.

Tisdall, Simon. "East Africa's Drought: The Avoidable Disaster." The Guardian: n. pag. The Guardian. Web. 1 Apr. 2014. <http://www.theguardian.com/world/2012/jan/18/ east-africa-drought-disaster-report>.

"Help Children in the Horn of Africa." UNICEF. UNICEF, n.d. Web. 1 Apr. 2014. <http://www.unicefusa.org/work/emergencies/horn-of-africa/>.

FAMINE IN HORN OF AFRICA

KEY THINGS TO KNOW

• Drought occurred at the end of 2010• This problem is affecting more than 13 million people in

the region (which includes Djibouti, Ethiopia, Eritrea, Kenya, Somalia, Sudan and Uganda – the poorest region in the continent)

• The main causes for this problem are:– Shortage of food– Climate change– Agricultural policy– Military conflicts– Effects of global markets on local economies

KEY THINGS TO KNOW

• More than 40% of the population of the Horn of Africa are living in areas where there are severe food shortages

• Many farmers are dis-incentivized from growing food because of cheaper imports – this hurts their local markets and the governments don’t do much to stop this

ORGANIZATIONS

• United Nations World Food Programme– WFP has provided food to stable and unstable areas

in the region– WFP has programmes that helps the region try to

get back to farming by teaching them new ways of irrigation and agriculture

• UNICEF– From 2011 to now, number of people in need of

assistance has decreased from 13M to 8M because of UNICEF’s aid

U.S. and the EU• U.S.

– Possible that U.S.’s counter-terrorism policies have actually worsened the situation

• EU– Provided €791M– European Commission Humanitarian Aid and Civil Protection (ECHO)

provided:• Shelter• Food• Nutritional services• Clean drinking water• Sanitation• Healthcare• Recovery

SOURCES THAT MAY BE HELPFUL TO YOU AND YOUR RESEARCH

Rice, Xan. "Hunger Pains: Famine in the Horn of Africa." The Guardian: n. pag. The Guardian. Web. 1 Apr. 2014. <http://www.theguardian.com/global-development/2011/aug/08/ hunger-pains-famine-horn-africa>.

Stastna, Kazi. "Horn of Africa Famine as Much about Geopolitics as Drought." CBC News: n. pag. CBC News. Web. 1 Apr. 2014. <http://www.cbc.ca/news/world/ horn-of-africa-famine-as-much-about-geopolitics-as-drought-1.1027406>.

Tisdall, Simon. "East Africa's Drought: The Avoidable Disaster." The Guardian: n. pag. The Guardian. Web. 1 Apr. 2014. <http://www.theguardian.com/world/2012/jan/18/ east-africa-drought-disaster-report>.

"Help Children in the Horn of Africa." UNICEF. UNICEF, n.d. Web. 1 Apr. 2014. <http://www.unicefusa.org/work/emergencies/horn-of-africa/>.

"Horn of Africa Crisis: Somalia's Famine." Al Jazeera: n. pag. Al Jazeera. Web. 1 Apr. 2014. <http://www.aljazeera.com/programmes/faultlines/2011/11/201111271473753430.html>.

"Horn of Africa - SHARE." Humanitarian and Civil Protection. European Commission, n.d. Web. 1 Apr. 2014. <http://ec.europa.eu/echo/policies/resilience/share_en.htm>.