Issue 1: The question of promoting
reliable microfinancing practices in LEDCs
Expert 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, and
exorbitant interest rates
– Spread to nearby states like
Bangladesh and Pakistan
• Bangladesh removed
Muhammad Yunus as the
director 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 multiple
borrowings:
• Political Instability like Arab Spring:
people became delinquents as their
business suffered
• Economic Instabilities: When states
with strong trade-ties falters, it also
influences 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 indebting
themselves, and even with finance, they cannot
produce competitive products as
they are not so skillful
• Lack of “proper” MFIs: Most
are 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. India
advocates for changes from
the current system.
• Bangladesh: Bangladesh is
the origin of microfinance,
and recent trends show
that it follows India’s
actions, which the
government discourages
people from using MFIs.
General Stance (cont.)
• Neighboring states follow same stance as India and
Bangladesh, and discourage microfinance.
• LEDCs: Are in more dire
need of microfinancing
practices, as it can work
as a key to poverty
alleviation.
• MEDCs: Some MEDCs also
practice microfinance in
means to help their own
impoverished 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 NonDiscrimination 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/ hungerpains-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-muchabout-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-africadrought-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-faminehorn-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-aboutgeopolitics-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-disasterreport>.
"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>.