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More than just internet: Harnessing the digital economy to rethink the future in Haiti

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The COVID-19 pandemic and economic crisis have highlighted the importance of internet connectivity and digital skills. The pandemic has exposed the lack of preparedness around the world to conduct business virtually, and has widened the divide between those with and without a broadband connection.

Connecting people to broadband offers more than just the chance to browse the internet and use social media– it can make a difference when it comes to disaster response, education, health, social safety nets, survival of enterprises and businesses, and overall economic development. Some studies show that for every 10% increase in broadband, developing countries could see 0.5 to 1.5% increase in GDP.

In Haiti, digital development has potential to help bridge the inequalities across the country. With better internet connectivity, school children in Nippes could have the same access to learning as those in Port au Prince. Fishermen in Port Salut could seek weather data before heading offshore, and farmers in the South could receive agriculture extension services, track crop cycles, and compare market prices. Entrepreneurs in the country could start a small business, advertise through social media, and find new markets. People across Haiti could receive earlier warnings about disasters and stay connected with loved ones.

However, the current lack of digital connectivity in Haiti, where only 35% of the population uses broadband internet, constrains the country’s growth and competitiveness, lagging far behind the regional average of 78%. Connectivity is also extremely unequal between rural and urban areas and between genders, as only about 7% of women and girls have internet access, the lowest in the region. Download speeds are significantly lower than in other Latin America and Caribbean countries. Moreover, internet in Haiti is not affordable. A 1GB mobile subscription could cost as much as 4% of per capita income, significantly higher for the average customer than in other countries in the region such as the Dominican Republic, Nicaragua, and Guatemala.

The Government of Haiti realized the potential of digital technology and prioritized investments in this sector. I am very pleased that the World Bank is partnering with the Government in increasing access to broadband services and establishing the foundations of digital resilience to shocks, through the Haiti Digital Acceleration Project, approved in October.  The project aims to connect 2.7 million more people to the internet in Haiti, and make digital infrastructure resilient, to avoid outages during disasters.

The Haiti Digital Acceleration Project will also connect nearly 1,300 public sector institutions. This aims to improve the way the government operates and interacts with citizens, opening the door to increased accountability, transparency, and more efficient service delivery. Reliable internet and IT equipment would facilitate data exchanges between government agencies, allow for publication of budgetary information, and improve mechanisms for citizen feedback. The ability to collect and analyze data can improve the design of government policies.

Similarly, increased accessibility and reliability of digital services would make it easier for Haitians abroad to send money home, or for people in Port au Prince to send funds to relatives in rural areas of the country. Enhanced connectivity would also contribute to strengthening the private sector, attracting more investment and providing room for growth of digital firms and for Haitian entrepreneurs and start-ups.

Investing in digital connectivity and services therefore offers abundant opportunities, and we are excited to be part of this initiative. Together, we can look forward to a future in which digital technology in Haiti can drive growth, create jobs, improve government services and transparency, and strengthen resilience.

First appeared in Le Nouvelliste via World Bank

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Economy

The first Africa-Caribbean Trade and Investment Forum Comes On 1-3 September at Barbados

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With the new dawn gradually unfolding, African financial institutions such as the African Export-Import Bank (Afreximbank) are making tremendous efforts and offering support for African leaders in consolidating Africa’s economy within the framework of the African Union Agenda 2063. They have consistently been pushing to transform agriculture as the safest approach to reduce imports and insure food security, improve industrialization and the raise the efficiency of human resource capital in Africa.

The Government of the Republic of Barbados will be hosting the first ever edition of the AfriCaribbean Trade and Investment Forum (ACTIF) which is being convened by African Export-Import Bank (Afreximbank) and Government of Barbados in collaboration with African Union Commission (AUC), African Continental Free Trade Area (AfCFTA) Secretariat, Africa Business Council, the Caribbean Community Secretariat, and Caribbean Export Development Agency. 

The African and Caribbean ties are deep rooted and based on shared history, culture, and sense of a common identity and destiny that was forged by the slave trade creating large centres of African Diaspora in the Caribbean and elsewhere. While Africa and the Caribbean have renewed their engagement, with a Heads of State and Government Summit of the Caribbean Community and Africa, held on 7 September 2021, the relationship needs to be institutionalized through deepening of trade and investment ties between the two regions.

The holding of the inaugural Africa-Caribbean Trade and Investment Forum is, therefore, a key strategic deliverable towards the institutionalisation of the reborn relationship between Africa and the Caribbean. This Forum will further consolidate the political agreement reached by Heads of State and Government of the Caribbean Community and which aims to strengthen collaboration, unity and to foster increased trade, investment and people-to-people engagement between the two regions.

It is in this context that the inaugural Africa Caribbean Trade and Investment Forum (ACTIF), has been organized to hold during 1-3 September at Bridgetown, Barbados. The Forum dubbed: AfriCaribbean Trade and Investment Forum 2022, will hold under the theme “One People, One Destiny. Uniting and Reimagining Our Future” vividly reflecting the common cultural aspirations. 

The main goal of the AfriCaribbean Trade and Investment Forum is to provide a platform for the development of strategic partnerships between the business communities in Africa and the CARICOM Region with the objective of fostering bilateral cooperation and engagement in trade, investment, technology transfer, innovation, tourism, culture and other services. The Forum will also be used as a vehicle to actively promote trade and investment opportunities among people of Africa and the Caribbean, as well as the wider diaspora which will contribute to the implementation of the African Continental Free Trade Agreement (AfCFTA) and to the Caribbean trade development agenda.

Africa leaders and its people highly appreciate the readiness of external countries, who in practical terms, engage in infrastructure development, agriculture and industry especially at the dawn of the rapid geopolitical changes possibly leading to creating a new global economic order. Noting the significance, a number of countries are simultaneously trying to understand barriers in the region and are steadily exploring ways to leverage unto the newly created AfCFTA which provides a unique and valuable platform for businesses to access an integrated African market of over 1.3 billion people in Africa.

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China’s economy showing resilience and potentials amid headwinds

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Since the beginning of this year, the increasingly complicated international environment and weakened global economic recovery, as well as sporadic but multiple local outbreak of COVID-19 pandemic caused harsh impacts on China’s economic development.

Affected by both domestic and external unfavorable factors, China’s economic performance in the second quarter was less ideal than expected, which has resulted in some negative rhetoric against China’s economy on some media. In this case, I would like to share some views on China’s economy and its prospects:

First, China’s economy managed to grow in the second quarter despite downward pressure. In the second quarter of this year, the impacts from a new round of COVID flare-ups and other unexpected factors steeply increased the downward pressure on China’s economy, and major economic indicators tumbled in April.

However, the Chinese government responded with resolute and swift actions. We put stable growth higher on the agenda, held ground against a massive stimulus, worked to front-load the policies set, and introduced and implemented a policy package for stabilizing the economy. The effects emerged immediately. In May, the decline in major economic indicators slowed.

In June, the economy stabilized and rebounded. Major indicators picked up fairly fast and returned to the positive territory. As a result, the economy registered a positive growth in the second quarter. The gross domestic product (GDP) of China in the first half year was 56,264.2 billion yuan, up by 2.5% year on year at constant prices. In terms of specific economic indicators, industrial production was steadily recovered and the total value added of industrial enterprises above designated size grew by 3.9% year on year in June which is 3.2% higher than in May. The service industry production index also increased from -5.1% to 1.3%. The total retail sales of consumer goods bounced back from -6.7% to 3.1% in June demonstrating market sales improvement and fast growth in retail sales of goods for basic living.

Exports went up by 22% which is 6.7% higher than the previous month. By ensuring supply and price stability in the market, focusing on grain and energy production, and overcoming the impacts of imported inflation, the consumer price is also generally stable and the employment improved. 

Second, China’s economy is expected to recover gradually and maintain steady growth. The risk of stagflation in the global economy is on the rise these days, thus raising the concerns of instability and uncertainty in China’s economic growth. However, China’s economy has strong resilience and great potentials and the fundamentals sustaining China’s long-term economic growth remain unchanged. With the implementation of a series of policies and measures to stabilize growth, China’s economic performance is expected to gradually improve. First, a major economy like China always has enormous resilience.

We should be aware of the considerably large scale of China’s economy and its advantages for having a solid material foundation and a huge domestic market. Second, the potentials of demand recovery are significant. Chinese government is determined to stabilize investment, accelerate the issuance and use of special-purpose bonds, speed up major projects construction, and encourage infrastructure investment. We expect to see further consumption recovery as the offline consumer services are reviving and the government policies to boost consumption are coming into effect.

Moreover, China’s foreign trade sustained great resilience. In May, China’s total import and export volume increased by 9.5% year-on-year, 9.4% higher than the previous month; and 14.3% in June, 4.8% higher than that in May. Third, there is a concrete foundation for production to rebound. Following the steady recovery of production, the industrial and supply chains have been gradually smoothed, and the promoting effects of key industries such as automobiles and electronics will further strengthen. And the service industry turned from a decline to an increase in June as the pandemic situation improved.

In addition, the promising recovery of transportation industry will also be of great help for the further production boost. Fourth, innovation will provide new momentum for economic growth. Under the pandemic, traditional industries have accelerated their transition and expansion towards digitization and intelligentization, meanwhile new industries continue to develop steadily and rapidly. Fifth, China’s macroeconomic policies are consistent and precise. The positive effects of policies such as large-scale tax refunds, issuance and use of special-purpose bonds, and increased financial support for the production will emerge, which will contribute to the steady recovery and growth of the economy.

Third, China’s economy has been deeply integrated into the global economy, and opening-up is one of China’s fundamental national policies. China cannot develop in isolation from the world, and the world also needs China for its development. Affected by factors such as the COVID-19 pandemic and the Ukraine crisis, the global industrial chain, and supply chain are disturbed. As a result, many countries are stuck in multiple crises in terms of food and energy. Rising prices have forced major economies to tighten their economic policies, and pushed the world economy into a substantial risk of stagflation. China, as the largest developing country in the world, has profound developmental potentials and can certainly provide a strong impetus for the global economic recovery.

China will deepen high-level opening-up, stay committed to free trade and fair trade, and help keep the two wheels of multilateral and regional trade cooperation running in parallel. Continued efforts will be made to foster a market-oriented, world-class business environment governed by a sound legal framework, and ensure foreign enterprises’ equal access to unlimited sectors in accordance with law in order to realize mutual benefit amid fair competition. China is ready to strengthen international cooperation against COVID-19 and willing to make its COVID control measures more targeted and well-calibrated under the premise of ensuring safety against the pandemic. We will steadily optimize the visa issuance and COVID testing policies and keep resuming and increasing international passenger flights in an orderly manner, and prudently advance overseas commerce and cross-border travel for labor services, so as to better promote personnel exchanges and China’s cooperation with the world.

In the first half of this year, the bilateral trade between China and Iran increased dramatically, consolidating China’s position as the top trading partner of Iran. We are sure that the steady recovery and growth of China’s economy will provide more opportunities for countries around the world including Iran. In the second half of this year, China will hold a number of exhibitions like the 7th China-Eurasia Expo, the 22nd China International Fair of Investment and Trade, the 132nd Canton Fair, and the 5th China International Import Expo which are great chances for Iranian merchants to learn more about China’s market and conduct cooperation with China. China will actively implement the Global Development Initiative and all countries around the world, including Iran, are welcome to benefit from China’s economic development, promote high-quality Belt and Road cooperation through greater openness and cooperation in trade, investment and other fields. In this way, we will be able to collectively build a community with a shared future for mankind.

From our partner Tehran Times

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Seventh Package of Sanctions against Russia Presents Unaccounted-for Risks

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The seventh package of the European Union sanctions against Russia in connection with the events in Ukraine will be remembered for its ban on the import of Russian gold, the expansion of export controls, as well as its list of blocked individuals and organisations. However, an important new feature hasn’t been thoroughly discussed. In Art. 9 Council Regulation EU No. 269/2014, a rule was introduced that sanctioned individuals are required to report to the competent authorities of an EU country about their assets in the jurisdiction of the European Union. The deadlines are stringent. Reports must be submitted before September 1 of this year. Those who are slapped with sanctions in the future must report within six weeks. In addition, blocked persons are obliged to cooperate with the competent authority in the verification of this information.

Let’s recall that the essence of blocking sanctions is that the assets of individuals and organisations that fall under them in the EU are frozen. In other words, they formally remain the property of such persons, but their use is forbidden. These assets may include bank accounts, real estate, capital goods, vehicles, etc. In addition, blocked persons are prohibited from providing “economic resources”. This essentially means a ban on most economic relations with them.

What is the meaning of this new feature? Most likely, the EU authorities want to facilitate the search for the assets of blocked persons. They specify that the sanctioned individuals themselves should do this “legwork.” If they refuse to comply by reporting their assets, then according to Art. 9 of the said Regulations, their actions will be regarded as circumvention of the sanctions regime. In turn, violation of the Regulations may lead to criminal liability and the confiscation of property obtained as a result of the circumvention of the sanctions. Article 15 of the Regulation obliges Member States to develop criminal prosecution measures for violation of the EU sanctions regime, as well as to take all necessary measures to confiscate the proceeds of such a violation. In other words, by failing to report their assets in the EU, blocked persons risk being sued, facing criminal charges, or losing their property.

The West has actively discussed the confiscation of the assets of blocked Russians since February 2022. Work on legal mechanisms is underway in the United States. In Canada, the forfeiture framework has been approved by the Senate.

Now that the seventh package of sanctions has been adopted, a similar mechanism is now being seen in the EU, albeit in the context of circumventing sanctions due to failure to provide information.

It is not yet clear how these rules will be applied. However, the existing legal mechanism may well be interpreted by the member countries in a way that is detrimental to the sanctioned individuals. To date, 110 legal entities and 1,229 individuals have been targeted by EU blocking sanctions over the Ukrainian issue. While not everyone has property in the EU, for others, the value of the assets may be huge, and attempts to confiscate or prosecute will inevitably cause new political tensions. For example, within the framework of the seventh package, Rossotrudnichestvo, which has a network of Russian centres of science and culture in the EU countries, was blocked. The same applies to the Russkiy Mir Foundation and its Russian Centres in the EU countries. It can be assumed that Sberbank and a number of other blocked Russian banks, enterprises and individual entrepreneurs have assets in the EU. Access to their property should be blocked by EU authorities anyway. The new rules of the seventh package also add the risks of confiscation in the event of a lack of reporting within the specified timeframe or a refusal to cooperate with the competent authorities.

The experience of the crisis concerning transit to the Kaliningrad region has shown that the authorities of individual member states can interpret EU sanctions very broadly. It cannot be ruled out that the new features of the seventh package will receive similarly broad interpretations. It is necessary to be ready for a scenario where the property of individuals and structures in the EU is confiscated, as well as their criminal prosecution in certain EU countries for violating sanctions legislation.

From our partner RIAC

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