Attracting encroachments to national sovereignty by rapacious Washington-connected multinational corporations and the meddling attentions of their powerful home country; stunting reform and economic development at every turn; breeding economic dependency; firmly controlled by foreign companies and giving little beneficiation to the country of production; upending and undermining political institutions; and not even sustainable.
These are ringing accusations which bring to mind one natural resource –oil. Certainly not the banana. This is somewhat understandable; oil more readily lends itself to the vilification touted in these bleak and cynical claims, and it has been the subject of visible conflict, with allegedly oil-motivated American interludes into Kuwait, Iraq and Libya being all too well known and well televised.
Nonetheless, it is one of the blights of modern political economic analysis, including those with a bent for “resource curse” theory, that in their discussion of the interaction of forces that have resulted in the paradoxical plights of some resource-rich countries, they tend to overlook one of the most important culprits, or perhaps better understood as a catalyst in a larger political process; the innocuous banana. And yet, perhaps just as much as oil, this energy source has been the fons et origo of many social, political and economic malaise in many underdeveloped countries who possess them.
This inevitable interaction with politics is only more obvious when we consider the economic significance of this product; bananas are the world’s fourth most consumed food crop, after rice, wheat and corn, with some 350 billion bananas consumed every year. Figures of this magnitude rarely rack up by market forces alone and nominally hint at a set of vested political and economic hands at work.
In this brief article, a slice of the long and storied history of the politically-derived banana’s impact on the economies of numerous states which were in possession of it, particularly regarding Latin America, the Caribbean and sub-Saharan Africa through the prism of the unholy alliances between big corporations and dictators, as well as the battle for market access.
Unholy Alliances: Dictators and Corporations
The South American country of Ecuador rarely finds itself on the top 3 list of any global rankings. Yet it occupies that very spot when it comes to world production of the banana. Some 18% of the bananas traded worldwide during the 1970s and 1980s originated from Ecuador, and this number expanded to 30% in the 1990s. Banana production and trade in Ecuador gives direct employment to an estimated 380 000 people. This tells something about the history and geography of this fruit on two particular points; why Ecuador and why now? The road to this present-day reality is an interesting and entangled one through which we gain insights into the nature of globalization as a performative process and its structures with implications far beyond Latin America.
In order to flourish, banana plants require rich soil, combined with 9 to 12 months of sunshine along with constant, heavy rains of to 80 to 200 inches a year. This is a demand level unmatchable by artificial irrigation if the given plantation is to compensate for the production costs and still have the ability to sell at the low price for which the banana is known. This gives us an important clue as to the Ecuadorian presence among the top producers in the world. But that is only a partial aspect on a bigger picture.
For one, how did the bananas get to Latin America, when they are said to be native to the tropics of South and Southeast Asia, and are likely to have been first domesticated in Papua New Guinea? And how did one particular variety of this fruit, the Cavendish, conquer the world market when there are thousands all across the world? The answer to these questions are political and are to be found in the early half of the nineteenth century.
The mass production of the banana such as we know today commenced specifically in the year 1834 and saw an explosion in the late 1880s and from the beginning reaped political consequences. Prior to the 1870s most of the land that bananas were grown on in the Caribbean had been previously used to grow sugar, and indeed before then bananas were virtually unknown in the United States. But this quickly changed and just 30 years later, Americans (then totaling at 70 million people) were consuming over 16 million bunches a year. Like all rapid expansions and enormous profits, this came at a high cost, and perhaps none bore it more than the producing populations.
The odyssey started in 1871 and, indicative of those twists of fate with which history is so littered, not with anything to do with agriculture but the construction of a railroad in Costa Rica overseen by an ambitious23 years-old Minor Keith, born in New York. The mega project sees hundreds lose their lives, including the lives of Keith’s two brothers. Bur Mr. Keith is undaunted. While building the railroad in Costa Rica he was also hatching a far grander plan. As construction made progress, he ordered the planting of bananas on the land easements to either side of the tracks. The bananas flourished and once the railroad was brought to completion it was possible to economically transport the bananas to Americans who were beginning to acquire a taste for the exotic fruit. By the next decade, Keith owned three banana companies. Keith then joined up with a Cape Cod sailor, Lorenzo Baker, and a Boston businessman, Andrew Preston. The three raised the necessary capital to establish the Boston Fruit Company. By 1899, the Boston Fruit Company and the United Fruit Company (UFCO) emerged – and in their wake formed the largest banana company in the world, with plantations all over Latin America and the Caribbean, including Colombia, Costa Rica, Cuba, Jamaica, Nicaragua, Panama and Santo Domingo. The company also owned 112 miles of railroad linking the plantations with ports. To complete their Charter company-like set up, and in order to protect their interests, they also owned some eleven steamships, known as the Great White Fleet and an additional 30 other ships under lease.
In 1901, Guatemalan dictator, Manuel Estrada Cabrera granted to UFCO the exclusive right to transport postal mail between Guatemala and the United States. Thus came UFCO’s first entry into Guatemala in whose wake the country would be held custody to a fruit company. Ruled by a conservative dictator who would be a puppet to the UFCO, Keith judged Guatemala to have “an ideal investment climate”. He formed the Guatemalan Railroad Company as a subsidiary of UFCO and capitalized it at $40-million. Other countries in Central and South America also fell prey to the UFCO, which they called or “El Pulpo” (the Octopus), but no other state felt the weight of the UFCO more than Guatemala.
Why was Guatemala such an ideal investment climate for the UFCO? “Guatemala was chosen as the site for the company’s earliest development activities,” a former United Fruit executive once explained, “because at the time we entered Central America, Guatemala’s government was the region’s weakest, most corrupt and most pliable.”In Guatemala, United Fruit gained control of virtually all means of transport and communications. United Fruit charged a tariff on every item of freight that moved in and out of the country via Puerto Barrios. As if that were not enough, the company also managed to exempt itself from virtually all taxes in Guatemala for 99 years.
In 1944, the people of Guatemala overthrew the right-wing dictator then in power, Jorge Ubico, and held their first ever true elections. The man they elected president was Dr. Juan Jose Arevalo, a socialist. A new constitution was drawn up, partly based on the American version. At this time, in the highly class-divided Guatemala, only 2.2% of the population owned over 70% of the country’s land. Only 10% of the land was available for 90% of the population, most of whom were native Indians.
Most of the land held by the large landowners was unused. Jacobo Arbenz who succeeded Arevalo in another free election continued the reform process. Arbenz proposed to redistribute some of the unused land and make it available for the 90% to farm. This greatly unsettled the UFCO; the United Fruit was one of the big holders of unused land in Guatemala. The pressure mounted heavily against the UFCO and finally the company made its pleas and called on officials in the US government, including President Eisenhower and Secretary of State John Foster Dulles (whose former New York law firm, Sullivan and Cromwell, was a representative of the company), saying that Guatemala had turned communist and was susceptible to Soviet Union influence.
Fortunately for the fruit conglomerate, almost every major American official involved had a family or business connection to the company itself(Allen Dulles, head of the Central Intelligence Agency, had served on UFCO’s board of trustees while Ed Whitman, the company’s top public relations officer, was married to Ann Whitman, President Eisenhower’s private secretary). Thus with great zeal, the U.S. State Department and United Fruit, enlisting the talents of the PR genius Edward Bernays (a nephew of the pioneering psychoanalyst Sigmund Freud), embarked on a major public relations campaign to convince the American people and the rest of the US government that Guatemala was a Soviet “satellite”.
Upon Bernays’ suggestion, the company also arranged and offered to pay for the expenses of journalists who traveled to Guatemala to learn United Fruit’s side of the story, and some of the biggest outlets (and particularly The New York Times and The New York Herald Tribune) published accounts favorable to the UFCO.
The campaign was a resounding success and in 1954, with consent manufactured, the CIA engineered a coup, code-named “Operation PBSUCCESS”. The CIA set up a clandestine radio station to carry propaganda, jammed all Guatemalan stations, and hired skilled American pilots to bomb strategic points in Guatemala City. The U.S. replaced the democratically-elected government of Guatemala with another right-wing dictator that would again bend to UFCO’s will. The propaganda machine, meanwhile, portrayed the operation to the American audience as the removal of an unpopular leader and the ushering in of liberty and democracy; this has an eerily familiarity when looked at through the prism of America’s 2003 invasion of Iraq.
After his firm, Hubbard-Zemurray, experienced much success importing bananas from Latin and Central America and selling them in in New Orleans, Samuel Zemurray went to the Central American republic of Honduras to expand his company into banana production in the year 1910. Honduras was deemed well-suited for growing bananas due to its proximity to the equator. These were the seeds of what would eventuate into Cuyamel.
But Cuyamel did not enter unchartered territory and the turf was already spoken for. The main player seeking monopoly status in the Honduras banana market besides was Vaccaro Brothers and Company. But both the Vaccaro firm and Cuyamel were eclipsed by the much larger United Fruit Company. Before United Fruit entered Honduras as a direct producer in 1910, the firm participated in the Honduras market by proxy through investments in both Zemurray’s and Vaccaro Brothers’ companies. Before United developed plantations of its own in the cities of Trujillo and Tela, it owned 60% of Cuyamel and 50% of Vaccaro. Even though the three companies were competitive against each other, they maintained some respective distance, and even pursued joint efforts in advertising and increasing banana agricultural outputs in Honduras.
Nevertheless, competitiveness seeps through. Zemurray had played an active role in Honduran politics since he first arrived in the country. In 1910, the administration of President Miguel R. Dávila had given the Vaccaro Brothers’ Company land for railroad construction and prohibited any other companies from building a competing railroad within 12 miles of the Vaccaro line. This had long displeased Zemurray, and he detested the Dávila government, having provided encouragement and money to a failed coup in 1908 against Dávila.
These concessions by the Dávila regime to Vaccaro further enrage Zemurray. He makes a concerted effort now to remove the regime, and has an accomplice in the person of former President Manuel Bonilla. Zemurray supplied weapons and transportation for Bonilla to launch a coup against Dávila. President Dávila fled, and Bonilla once again assumed the presidency of the nation, owing in large part to the direct intervention of Zemurray.
Shortly before Bonilla ascended to the presidency, Zemurray in 1911 transformed his company from Hubbard-Zemurray into Cuyamel Fruit Company. He acquired 5,000 acres of land for agriculture along the Cuyamel River in the northwestern extremity of Honduras, near the Guatemalan border. The firm took its new name either from this river or from the town of Cuyamel nearby. As a repayment for his support, Bonilla also granted Zemurray a concession to build a railroad between the town of Cuyamel, by the coast, and Veracruz, in the interior.
There were no more coups in the country through the end of the decade, but Zemurray’s Cuyamel Fruit was in fierce competition with Vaccaro and United. Further, Cuyamel’s development of a previously empty strip of land along the Guatemala-Honduras border almost led to an outbreak of war between the two states, but this was halted by US mediation.This incident of near-war strained relations between pro-Honduras Cuyamel and pro-Guatemala United, and this tension would not fully cool off until the two companies became one in 1929, when following the October crash of international financial markets, Zemurray sold Cuyamel to United Fruit in exchange for stock and retired, making UFCO the giant discussed in prior sections.
The Banana Wars: The Battle for the Banana Market
Africa’s banana market is a paradoxical reality. In the lowland of the Congo basin, farmers grow a greater diversity of bananas than anywhere in the world.In countries such as Uganda, Burundi, and Rwanda per capita consumption has been estimated at 99 pounds per year, the highest in the world. Uganda itself is the second-largest producer of bananas in the world after India. It is, however, one of the smallest exporters, the crops being used mostly for domestic consumption.
West African countries produce nearly all of Africa’s banana exports. Production in this region has grown rapidly over the past 15 years, now accounting for around 4% of the world banana trade. The vast majority of these bananas are sold in Europe, mainly in France and the UK, where an estimated 2.5 billion tonnes of bananas are peeled annually. But the African access raises questions and a myriad of issues about the nature of the international political economy than meets the eye.
Since 1975, African and Caribbean countries had had a quota of bananas to import into the EU market, enabling them to sell to Europe as many as they wanted to support. The official reasoning for this was that the European Union (then known as the European Community) hoped, that this would enable the economies of such developing countries to grow independently, without depending on overseas aid. Some economists, however, question the logic behind this.
To begin with, if the EU is concerned with the development of these countries and to free markets, it makes no economic sense to continue to subsidize their agricultural lobby with up to 50-billion euros per year. Secondly, the EU would remove barriers to a vast array of agricultural products from Africa – as it stands only bananas can be sold into the EU market without barriers to entry, and indeed disincentives are provided as seen in the imposition of 30% tariffs to unprocessed coffee but 60% to processed (that is job-creating) coffee from Africa.
Secondly, banana and pineapple production in Africa are dominated by two American multinational companies Compagnie Fruitière/Dole (a descendent of the Cuyamel company dealt with above) and Del Monte.In any case, US multinationals which control the Latin American banana crop hold 67% of the EU market and the US itself does not export bananas to Europe. This perhaps displays the extent to which the removal of barriers to access are motivated by US-EU alliance and not developmental concerns regarding Africa. The Caribbean is a different story, however.
Despite this, however, the US filed a complaint against the EU for further with the World Trade Organization (WTO) and, in 1997, won. The EU was instructed to alter its rules as a result. The chief outcome of this deal had been to protect banana farmers in the Caribbean from competition from Latin America, whose bananas are cheaper because they are grown on largescale, mechanised plantations run by giant USbased corporations.
After the WTO ruling, the US government continued to argue that free trade in bananas had not been restored, while the EU argue it has changed its rules. The US has then imposed a retaliatory range of 100% import duties on European products, “encompassing everything from Scottish cashmere to French cheese” as the Guardian then put it.
The US government was allegedly pressurized by powerful US multinational companies which dominate the Latin American banana industry. “The Bill Clinton administration took the “banana wars” to the WTO within 24 hours of Chiquita Brands, a powerful, previously Republican supporting banana multinational, making a $500,000 donation to the Democratic Party” according to journalist Patrick Barkham.
The banana wars came to a conclusion only in 2009 with an agreement between the EU and Latin American countries. The December 2009 agreement involved the EU reducing its tariffs on imported bananas from 176 euros ($224; £140) per tonne to 114 euros per tonne within eight years.
The Future and Sustainability of the Banana: A Challenge of Globalization
Like oil, the banana is not only problematic in its production and sale, but it may also not have much of a future; at least not as we know it. Researchers have declared the Cavendish to be potentially unsustainable and at risk of “imminent death.” This threat stems from the Panama disease; a deadly root fungus from the island of Taiwan. And since all Cavendishes are clones, if the fungus can kill one banana shrub, it can kill them all.
Of course the Panama disease is nothing new. It was identified at least as early as the 1950s, when it wiped out the Cavendish’s predecessor, known as the ‘Gros Michel’, or Big Mike. When the Gros Michel banana succumbed to the fungus, the Cavendish was found to be immune, at least until the fungus mutated and started its attack all over again. Starting in the 1990s, the Panama fungus began to work its way across Asia and Africa once again. The oceans have proven effective barriers for now, “but when someone with the fungus on their shoe can cross an ocean in a few hours,” National Geographic magazine warns“oceans provide little protection.”
The history of the banana has been one of deep politicisation, therefore; implicating it in the unfavourable destinies of multitudes. But the banana, and for that matter oil itself, is merely one among many problematic resources to reap these economic histories and contemporary consequences. Indeed its trysts with dictators, lobbyists and tariffs at the behest of seemingly malevolent multinationals says more about the politicised nature of international trade than the resource in question. Indeed very few resources, if at all, could undergo similar examinations and emerge unscathed to some degree or another.
‘America First’ vs. Global Financial Stability
The recently concluded annual meeting of the IMF and World Bank group, held in Indonesia last weekend, has highlighted a series of concerning trends with regard to the global economy. It has subsequently left many considering the impacts of a possible global recession that may be looming ahead in the next of couple of years to come. These fears were evident in the worldwide sell-off in global equities last Thursday that has been widely attributed to the IMF revising down its global growth forecast in its World Economic Outlook (WEO) report. The report highlighted growth in a number of developed economies as having plateaued, with rising trade tensions and policy uncertainty greatly contributing to the slow-down. This includes the ongoing trade war between the US and China, as well as the numerous uncertainties pervading within the Euro-Zone.
All of this has had a significant knock-on effect on emerging markets, including Pakistan which has already been struggling with massive fiscal and current account deficits amid rampant inflationary pressures. With tensions between the United States and China still on the rise, Pakistan presents a notable example of how deteriorating global macro-economic conditions have been exacerbated by rising geo-political tensions between these two global powers.
For instance, it took Imran Khan’s fledgling government months to accept the reality of another IMF bailout (Pakistan’s 13th in the last 30 years) despite its $68 billion investment commitment with China. This is because the US, being the largest contributor of funds to the IMF has increasingly politicized this bailout in light of its own deteriorating relations with China. In fact, the US has directly blamed China for Pakistan’s recent debt woes referring to what has been come to known as China’s ‘Debt Trap Diplomacy’. The argument being that the massive loans being doled out by China to developing countries under its Belt & Road Initiative are leading to unsustainable debt levels, eroding their sovereignty while expanding China’s hold over them. Pakistan’s loan obligations to China as part of the China Pakistan Economic Corridor are presented as a case in point.
Despite both Pakistan’s and China’s protests to the contrary, it is widely expected that some of the IMF’s conditions attached to Pakistan’s requested bailout are thus likely to include greater scrutiny and revisions regarding the CPEC initiative. This is likely to form part of the US’s overall objective of limiting and constraining China’s influence over Pakistan and the wider region. The impact this would have on Pakistan however is likely to prove critical considering its precarious economic as well as geo-political position. Not only would the IMF’s conditions limit the new government’s ability to maneuver its economy around an increasingly unstable world financial system; it would also delay the much needed infrastructure projects being planned and implemented under CPEC with Chinese assistance. Therefore, the very purpose of the IMF bailout which is to provide some semblance of stability to Pakistan’s ailing economy, would embroil it deeper in uncertainty as a direct result of the US’s unilateral push against China.
It is worth noting here that during its annual meeting, the IMF clearly voiced its concerns regarding escalating trade tensions between the US and China. While calling for increased dialogue and a careful examination of debt induced risks across the world, the IMF seems to be warning both sides over the fragility of prevailing global economic conditions. At the same meeting, China too echoed these concerns and called for increased dialogue with the US to promote open trade and growth. As a country that has for the last few decades championed globalization, China’s vision of shared global growth and win-win partnerships in emerging markets such as Pakistan, have however been directly challenged by the US. A US, that is in contrast aggressively willing to defend the prevailing status quo, as part of President Trump’s mantra of ‘America First’. Hence it was no surprise that US representatives, in response to these concerns brought up by the IMF and China, have continued to downplay the risks of their policies on global economic stability.
With respect to China and numerous emerging markets such as Pakistan, the fact still remains that the world financial system is currently replete with risks and uncertainty as a direct result of US policy. All of this is occurring while the US President continues to boast about surging US equities and record employment figures as a direct outcome of these policies. While the US economy has experienced sustained growth since the 2008 financial crisis, markets and business cycles have a way of correcting themselves, especially when world leaders themselves point to overbought and overextended conditions.
If the US economy truly is on the cusp of a potential downturn, then present geo-political tensions are more than likely to exacerbate the impacts of an impending global recession. For Pakistan, with its precariously low foreign currency reserves and an unsustainable debt to GDP ratio, such a recession is likely to bring on even bigger problems than any of the potential cuts the IMF may propose on CPEC. Thus, while the US may limit China’s rise as an economic power in the short-term, it does so at the expense of emerging markets and global economic stability in the long-run. This lack of foresight is likely to hurt the US more as it realizes how economies cannot exist within a vacuum in an increasingly interdependent world.
How to finance Asia’s infrastructure gap
Asia’s countries famously need to invest trillions of dollars a year to provide infrastructure required to keep traffic flowing, ports trading, and factories humming. Yet most countries in the region consistently fall short.
The 2017 Asian Development Bank (ADB) report “Meeting Asia’s Infrastructure Needs” puts the infrastructure tab for 45 developing Asian countries at more than US$1.7 trillion per year. Developing Asia now invests only about $881 billion a year, or slightly more than 50 percent of that. This is the infrastructure gap.
Less well known, however, is that the investment shortfall is frequently not for a lack of funds or technology. The money may be available, particularly in the private sector, but not enough of it is going where Asia needs it. And this is because many developing countries lack the knowledge and capacity to design and implement bankable infrastructure projects that integrate new technologies.
To encourage private sector investment in infrastructure, high-quality bankable projects must adopt current levels of proven technology as well as be “future-proofed” to further advances in technology.
Delegates from across the development spectrum — from government through the private sector — will gather on Oct.13 in Bali for the Global Infrastructure Forum 2018 to discuss several trillion-dollar questions. How can governments and the private sector help fill the infrastructure gap? How can authorities’ better pair the world’s big investors with the many inclusive, resilient, sustainable, and technology-driven infrastructure projects this region needs to advance economic progress? And how can multilateral development banks best help?
To be sure, strong infrastructure projects are going up all over Asia. Take Indonesia, the Forum host; the country has made enormous strides under its ongoing and ambitious infrastructure program.
The country has seen progress: from the trans-Papua road project in one of the country’s most remote and underdeveloped regions to better information and communications technology under the Palapa Ring (satellite) Project. Indonesia has also launched innovative and clean energy projects such as the 72-megawatt Tolo wind-farm in South Sulawesi and massive urban infrastructure to boost Jakarta’s livability and competitiveness. This latter project includes a new modern airport terminal, rail link, and the first phase of the mass rapid transit expected to open in 2019.
Knowledge is crucial to get such projects off the ground, and this is where the multilateral development banks, including ADB, can assist.
The development banks are providing governments financial and technical support to enhance knowledge in numerous areas.
ADB is also helping strengthen government and private sector project development and governance capacity, for instance, for preparing high-quality projects able to support private finance. It also established the Asia Pacific Project Preparation Facility, a $73 million multi-donor trust fund to support project preparation, monitoring, and project restructuring, as well as capacity building and policy-reform initiatives linked to specific projects.
In addition, the organization is promoting public-private partnerships, catalyzing regulatory reforms to make infrastructure more attractive to private investors, and encourage more bankable projects. Potential is vast, in that pension funds alone, which hold $7.8 trillion in assets, are estimated to invest only about 1 percent of funds under management in infrastructure.
A recent ADB report, “Closing the Financing Gap in Asian Infrastructure,” notes that the richer Asian economies, such as Japan — where savings rates top 30 percent — can clearly play a stronger role if it only could. Yet, the country still invests almost $4 trillion in portfolio assets outside Asia.
Likewise, ADB is developing alternative financing structures and is backing green finance to encourage a bankable green finance project pipeline that can access funds from commercial and institutional investors. Many major investors are now strictly subject to environmental, social, and governance requirements in their investment decisions.
Finally, as technology rapidly evolves, particularly digital, it is creating substantial opportunity. Land acquisition, for example, significantly delays infrastructure projects across the region. Digital technologies are therefore being tested in several countries and watched closely for an ability to improve land titling. Likewise, ADB is involved in Spatial Data Analysis Explorer to help in decision-making relevant to climate hazards and resilience across urban systems.
Multilateral development banks can play multiple roles, from assisting and advising on the creation of appropriate legal and regulatory frameworks, developing bankable projects, direct financing or providing credit enhancement tools to finance projects, to structuring innovative “blended finance” solutions in circumstances where the underlying project is incapable of supporting a financing structure priced at commercial funding rates. In all of this, multilateral development banks and other development partners can assist developing countries gain the knowledge to better develop sustainable, accessible, resilient, and quality infrastructure.
Prema Gopalan Honoured as India Social Entrepreneur of the Year 2018
The Schwab Foundation for Social Entrepreneurship, in partnership with the Jubilant Bhartia Foundation, announced Prema Gopalan of Swayam Shikshan Prayog (SSP) as India Social Entrepreneur of the Year (SEOY) 2018. The award honours her exceptional contribution in revitalizing rural economies by empowering women to succeed in remote and ailing markets. The SSP model comprises four ventures: a federated network of 5,000 self-help groups; a resilience fund for women-led businesses; a rural school of entrepreneurship and leadership for women; and a market aggregator that provides warehousing, branding, marketing and distribution services to last-mile business women. In addition, it has catalysed the government, investors, financial institutions and Indian and global corporations to partner directly with grassroots women business leaders.
Over two decades, this has had a domino effect in 2,000 climate-threatened villages across six states of India. Over 97,000 women in drought and flood-affected villages have set up enterprises in clean energy, sanitation, basic health services, nutrition and safe agriculture. They have transitioned from self-employment to diversify their ventures, aggregate into value chains and mentor thousands of others to get on the path of entrepreneurship – 900 women are recognized locally as climate resilience leaders and 500 are playing a role in local governance. SSP’s grassroots women entrepreneurs are taking their communities forward as part of their business success. As SSP partners with the government to scale its model, it is demonstrating that investing in rural women entrepreneurs can be a solid strategy for transforming India.
Smita Ram and Ramakrishna NK of Rang De were also selected as finalists for their work on unlocking unusual channels of capital for India’s poorest, building bridges between India’s credit-starved communities and ordinary citizens who contribute to meet the education, health and enterprise needs of resource-poor populations. Working on the premise of “micro-investment for micro-loans”, this peer-to-peer lending platform has to date disbursed INR 70 crore from 14,000 social investors and philanthropists to benefit 60,000 families.
“The World Economic Forum has long championed gender equality on the global agenda,” said Hilde Schwab, Chairperson and Co-Founder of the Schwab Foundation for Social Entrepreneurship. “The 2018 winner, Prema Gopalan of Swayam Shikshan Prayog, has demonstrated that investing in rural women is a good investment. Female entrepreneurs are critical actors to help bring about the transformation that India seeks!”
Congratulating the winner, Shyam S. Bhartia, Founder and Chairman, Jubilant Bhartia Group, and Founder Director of Jubilant Bhartia Foundation, said: “We are entering the tenth year of partnership with the Schwab Foundation. In the last nine years, we received more than 1,400 applications for this award. The response is indeed overwhelming and the quality of the applications very competitive. We are glad to see how the SEOY India Award is able to identify and bring to the forefront the enterprises who are achieving social impact at a larger scale. We hope that this year’s SEOY India Award winner will serve as an inspiration to future generations of social innovators.”
The SEOY India Award brings some of the country’s most remarkable change-makers on to a common platform. These social entrepreneurs are promising self-starters, with a strong inclination towards addressing the most pertinent needs of marginalized communities in scalable and sustainable ways. Their endeavours encapsulate alleviating poverty, hunger, gender inequality, promoting women empowerment and education. These social entrepreneurs are torch-bearers who have taken the onus of working towards managing micro-finance needs and finding solutions to daunting challenges like climate change. The tenets of this year’s finalists are aligned with the United Nation’s Sustainable Development Goals.
The winner will be invited to join the Schwab Foundation’s global community of over 350 social innovators. Social Entrepreneurs are driven by their mission to create substantial social change and promote inclusive growth, developing new products and service models that benefit underserved communities.
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