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Investing in women key to sustainable peace in DR Congo and Nigeria

MD Staff

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Investing in women and girls must be central to global efforts towards sustainable peace and development in both Nigeria and the Democratic Republic of the Congo (DRC), the United Nations deputy chief said today.

“Both have dismayingly low levels of women’s political participation and are experiencing conflicts marked by extremely high levels of sexual- and gender-based violence,” said Deputy Secretary-General Amina J. Mohammed as she updated the Security Council on her recent trip to the two African countries. The trip, from 19 to 27 July, was “the first of its kind” because it focused entirely on the role of women in peace, security and development, she said.

The joint AU-UN high-level mission was undertaken by four African women, namely Ms. Mohammed, the UN Women Executive Director Phumzile Mlambo-Ngcuka, the UN Special Representative on Sexual Violence in Conflict, Pramila Patten, and the African Union (AU) Special Envoy on Women, Peace and Security, Bineta Diop.

The mission’s goal was to advance peace by advancing the equality, empowerment and well-being of women, which is in line with the Secretary-General’s vision and the relevant Security Council resolutions.

In both countries, Ms. Mohammed noted, the mission met with Heads of State, ministers, donors, diplomats, faith leaders, parliamentarian and the respective UN mission and country teams, spending the lion’s share of time with the women and girls most affected by conflicts, including through visits to camps for internally displaced persons.

 While each country is unique, the situations share some commonalities, she said, noting that sexual violence is widespread in the DRC, and abductions, forced marriage and the use of women as suicide bombers have taken a terrible toll in northern Nigeria, where in the camps sexual exploitation, including in the form of “sex for food” is a new and alarming trend.

“The international community needs to better understand the role of women in development and peace building alongside the gender dimensions of conflict if our responses are to be effective,” she said.

Turning to country-specific matters, the UN deputy chief said that the mission was touched by the meeting with the schoolgirls, who were abducted in Nigeria’s Chibok and then released, after years in captivity, by the Boko Haram group.

“Their remarkable strength as survivors rather than victims is inspiring. Many are receiving education and psychosocial support to prepare them for reintegration,” Ms. Mohammed said, noting that thousands of other young women who have been subjected to sexual violence and affected by conflict in other ways are still to receive adequate support.

Beyond theoretical debate, humanitarian-development nexus requires tangible resources

In the DRC, the mission emphasized the need to respect and implement the 31 December agreement, which provided a clear path towards democratic elections, she noted.

At the time of her visit, Ms. Mohammed said the electoral commission had registered more than 80 per cent of voters. That number now stands at more than 90 per cent. Of those registered, 48 per cent are women, placing the country in the same bracket as more established democracies such as Solomon Islands and Paraguay.

The mission also met with women who have no choice but to cook with coal in their tents, at great risk to their health and that of their children.

“While we may debate the humanitarian-development nexus philosophically here in New York, without resources flowing to both sectors simultaneously and a real investment in early recovery, we can neither sustain peace nor prevent future gender based violence,” she said, encouraging donors to respond to the DRC’s reintegration challenges based on need alone.

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Africa

South Africa: Better Education & Spatial Integration Crucial for Reduced Inequality, Job Creation

MD Staff

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In an environment of accelerating but still modest growth, government policies that stimulate competition and create the fiscal space needed to build a skilled labor force from the poor population of South Africa, would create jobs and help reduce inequality, according to the South Africa Economic Update released by the World Bank today.

The World Bank expects real growth in gross domestic product (GD) to accelerate from 1.3 percent in 2017 to 1.4 percent in 2018, supported by a rise in confidence, global growth and benign inflation. For 2019, the forecast is 1.8 percent and 1.9 percent in 2020. But despite this modest rebound, growth in South Africa remains constrained and continues to lag behind its peers. Overall, South Africa is projected to remain largely below the average growth rate of 4.5 percent in 2018 and 4.7 percent in 2019 in emerging markets and developing economies.

“This outlook calls for fundamental policy action to turn the economy around through policies that can foster inclusive growth and reduce inequality,” said Paul Noumba Um, World Bank Country Director for South Africa.  “Creating labor demand and fiscal space to finance improved education as well as reinforcing spatial integration will enhance the ability of the poor people of South Africa to participate meaningfully in the economy”.

The special focus section of this 11th edition of the South Africa Economic reviews the evolution and nature of South Africa’s inequality – among the highest in the world– arguing that it has increasingly been driven by labor market developments that demand skills the country’s poor currently lack. It suggests that significantly raising South Africa’s economic potential will require breaking away from the equilibrium of low growth and high inequality in which the country has been trapped for decades, discouraging the investment needed to create jobs.

Simulations assessing the potential impact of a combination of various policy interventions on jobs, poverty, and inequality suggest a scenario in which the number of poor people could be brought down to 4.1 million by 2030, down from 10.5 million in 2017. This would be driven by increasing the skilled labor supply among poor households through improved education and spatial integration as well as increasing labor demand through strengthened competition.

In this scenario, the Gini index of inequality would be reduced from 63 today to 56 in 2030. An additional 800,000 jobs would be created with higher wages for workers from poor households, and cheaper goods and services contributing to these outcomes, according to the report.

In the short term, these policy interventions would include, getting the implementation of the recently granted free higher education right, continuing to address corruption, improving the competitiveness of strategic state-owned enterprises, restoring policy certainty in mining, further exposing South Africa’s large conglomerates to foreign competition and facilitating skilled immigration,” said Sebastien Dessus, World Bank Program Leader.

In the longer term, the report suggests that improving the quality of basic education delivered to students from poor backgrounds and reinforcing the spatial integration between economic hubs, where jobs are located, and underserviced informal settlements, would reduce poverty and inequality and support job creation.

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Can Insurance Help Low-Income Ethiopians Cope With Risk?

MD Staff

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Photo: Binyam Teshome / World Bank

The loss of crop or livestock as well as concerns about illness and accidents are key financial expenses on the minds of low-income Ethiopians.

Unexpected expenses associated with these issues are relatively common. A third of low-income Ethiopian households experienced at least one major health issue in the previous year, often paying for it out-of-pocket.

In rural areas, almost 50% of households experienced some agricultural loss in the previous year. For three-quarters of these households, these financial losses accounted for more than half of their income in a typical year.

Yet even though these crises affect a large number of the population, Ethiopians don’t have adequate mechanisms in place to cope with the financial hardship they bring.

“People don’t put money aside to deal with risk. Instead, they rely on cash and savings, if they have them, borrow money from family, if possible, or as a last resort, sell livestock to cope with these unexpected shocks,” said Craig Thorburn, a Lead Financial Sector Specialist with the Finance, Competitiveness and Innovation Global Practice of the World Bank Group, and the technical lead for a FIRST Initiative funded project that produced the new report What People Want: Investigating Inclusive Insurance Demand in Ethiopia.

Informally borrowing money is a common coping strategy as loans from formal financial institutions are expensive and hard to get. However, when a crisis, such as drought, affects an entire community, informally borrowing money from relatives isn’t a viable option. And selling livestock may inject rural households with quick access to cash, but this approach ultimately leaves families poorer and less resilient.

Last year, the World Bank Group conducted a demand-research study in Ethiopia to examine risks low-income households face and see whether insurance could be a tool that Ethiopians could tap into to reduce and better manage these financial burdens.

This country-wide survey reached close to 3000 households, totaling 13,000 people, from both rural and urban areas.

“Understanding the needs of underserved populations, including low-income households, is key to developing quality insurance products and expanding insurance markets,” Thorburn said. “Without this knowledge, potential insurers wouldn’t understand the real and perceived risk of this unserved market segment.”

The survey found that people had little knowledge or experience with insurance, and that 50% of surveyed households never heard of insurance. However, people expressed interest in it if insurance products were devised as accessible and inexpensive.

Ethiopians have unserved needs that could be met with affordable products they actually want.

For example, 97% of focus group participants indicated they would buy a proposed prototype crop insurance product if it were available to them, as it would allow them to replace lost income and buy inputs for the next crop cycle.

And for health-related issues, the survey found that while many people fear a high-cost illness, they could manage many basic expenses with their existing resources, with 75% reporting that they were able to fully recover from financial hardship. This indicated that a well-designed insurance product could leverage existing strategies such as savings, and provide peace of mind. Interest in a hospital cash prototype was high, with close to half of participants willing to pay an actuarially sound premium.

This openness to insurance could provide a great opportunity for insurers, particularly if they can customize and tailor their products to suit customers’ needs.

While this initial research indicates that low-income households are interested in insurance, it would require insurers, the government and other stakeholders to work together to develop insurance products that are accessible, affordable and appropriately designed for people’s needs. Other aspects related to extending the insurance market would need to be considered as well. These include adapting the regulatory framework to motivate insurers to enter this market and devise financial education programs to educate people on insurance.

“Ethiopia provides a significant opportunity for insurers to expand their businesses, the government to improve the overall stability of the low-income population, and low-income people to stabilize their economic status,” said Thorburn.

Focus group participants indicated they would be most likely to purchase insurance from formal financial institutions, such as banks or microfinance institutions, which would bring stability and financial capacity. They indicated that they would be less likely to purchase insurance through informal formal groups, such as savings and credit cooperatives or Edirs, which are well-ingrained local community-based organizations created to help cover funeral expenses.

The World Bank is working in Ethiopia to create an enabling environment for inclusive insurance.

These survey findings are part of a broader World Bank study that that looked at supporting more inclusive insurance markets in Ethiopia.

This study and the report were done jointly with MicroInsurance Centre at Milliman and EA Consultants. The study and the report were funded by the FIRST Initiative.

World Bank

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Catholic Church under attack in the DRC

Samantha Maloof

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In a country increasingly wracked by armed conflict, nothing is sacred anymore. The kidnapping of a Catholic priest in the Democratic Republic of Congo, and the subsequent demand for a ludicrous Sh50 million ($500,000) ransom, is just the latest instance of turbulence in this violence-ridden nation.

The abduction is concerning not only as the latest instance of the encroaching lawlessness that plagues the land, but also because it represents an openly hostile attack on the Catholic Church of Congo itself. With a corrupt president clinging onto power, the Church has become one of the DRC’s main sources of moral authority and resistance to tyranny. As a result, such a brazen assault on this influential institution only further undermines the country’s chances for a stable future.

Anarchy in the DRC

Despite its incredible natural wealth (it has vast resources of cobalt and copper, among other precious minerals), entrenched corruption in the DRC has kept the vast majority of the populace locked in entrenched poverty. With over 13 million people in need of humanitarian aid and 7.7 million of those facing “severe food insecurity”, the situation is comparable to the crisis in Syria. To add to the humanitarian emergency, armed rebel groups have been engaging in increasingly frequent attacks, especially in the DRC’s eastern provinces, prompting the UN to deploy over 16,000 peacekeepers in the country. That’s the largest peacekeeping operation anywhere on the planet.

15 of those peacekeepers were targeted by rebels in December last year in what has been described as one of the worst attacks on UN personnel in living memory, and the violence has recently spilled over into the religious community as well. The abduction of Father Celestin Ngango on Easter Sunday is just the latest attempt to extort money from the Church, as there have been several others in recent years. In October 2012, three priests were abducted from the Betumbo-Beni diocese, while two more were kidnapped in July 2016. None of the abductees have been seen since. Although a prominent bishop has admitted that kidnappings are virtually a daily occurrence in the DRC, the extortionate ransom demanded for Father Ngango represents a serious escalation vis-à-vis previous sums.

Church as a figurehead of freedom

The stakes have not only been heightened in monetary terms. By targeting clergymen, the rebels are destabilising the DRC further by victimising the very body which is fighting most to save it. The Church has long been an outspoken proponent of democracy and freedom, stretching back to the days of dictator Mobutu Sese Seko. After Mobutu attempted to quash the Church in the 1970s – seeing it as an obstacle to his attempts to consolidate absolute power – the institution enjoyed renewed popularity among the common people, aided by its role as provider of educational and welfare services.

Indeed, in a country where the authorities often fail to supply even the most basic public services to their citizens, the Church has filled a critical vacuum, resulting in enduring popularity even among non-believers. 35 million of 84 million Congolese call themselves Catholics, but many of those who do not identify with the Church still appreciate their support for democracy and social justice. The de-facto leader, Cardinal Laurent Monsengwo, enjoys wide popularity; perhaps more tellingly, he has also been a constant thorn in the side of the country’s dictators. Indeed, current leader Joseph Kabila himself once confided to a European diplomat that he viewed Monsengwo as his “main opponent”.

Striving for justice

It’s easy to see why Kabila is so wary of Monsengwo and his order. The Church fielded 30,000 observers in the 2011 elections and were the first party to cry foul play. When Kabila promised to step down at the end of his mandate in 2016, the Church acquiesced, only to step in as mediators and broker the Saint Sylvester agreement (which called for elections by December 2017) after he refused to keep up his end of the bargain. However, the failure of those elections to materialise has now shifted their position from mediators to mobilisers. Since the end of 2017, the Church has organized 149 peaceful protests, only 16 of which have been allowed to take place unchallenged. With the political opposition typically fractious in nature, the Church has provided a rare and crucial voice of unity against Kabila.

That fractiousness, however, may now be coming to an end with the rise of presidential candidate Moïse Katumbi. Championed by the Church and by dozens of opposition leaders, Katumbi announced his candidacy with the launch of a new “Together for Change” party earlier this year. Katumbi has the financial credentials and the widespread popularity to topple Kabila, prompting the latter to hinder the former’s campaign in any way he can. Kabila has levelled charges of real estate fraud and mercenary recruitment at Katumbi’s door and charged him with three years in prison, though Katumbi (and the Church) maintain his innocence. Additionally, Congolese authorities have blocked his passport application and raised his former Italian citizenship as problematic in blatant attempts to discredit his candidacy. Nonetheless, Katumbi has promised to return to the DRC by June at the latest and lead the charge against his old foe.

Situation critical

If elections are allowed to proceed as planned on December 23rd and Katumbi given the opportunity to stake his claim to the presidency, there is a real hope that the DRC can dig itself out of the corruption, conflict and poverty that has taken hold of the country. The support of the Church will be instrumental in giving that hope credibility.

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