TOURISM â A FIGHT AGAINST POVERTY
Creating Jobs and Wealth
Poverty alleviation has become an essential condition for peace, environmental conservation and sustainable development, besides being an ethical obligation in an affluent world, where the divide between poor and rich nations seems to have increased in recent years. There is a stronger evidence that tourism if developed and managed in a sustainable manner, can make a significant contribution to alleviate poverty, especially in rural areas, where most of the poor live and where there are very few other development options.
Travel & Tourism is the worldâs largest industry and creator of jobs across national and regional economies. World Travel and Tourism Council research shows that in 2000, Travel & Tourism will generate, directly and indirectly, 11.7% of Gross Domestic Product and nearly 200 million jobs in the world-wide economy. International tourism arrivals in 2002 exceeded 700 million, generating $US 474.2 billion in worldwide receipts.  These figures are forecasted to have an upward trend in 2010.
Jobs generated by Travel & Tourism are spread across the economy – in retail, construction, manufacturing and telecommunications, as well as directly in Travel & Tourism companies. These jobs employ a large proportion of women, minorities and young people; are predominantly in small and medium sized companies; and offer good training and transferability. Tourism can also be one of the most effective drivers for the development of regional economies. These patterns apply to both developed and emerging economies.
The Secretary-General of the World Tourism Organization, Francesco Frangialli, rightly observed that âtourism is a major factor in the war on poverty. For most Developing Countries, LDCâs and Small Island Developing States it is their largest single export and major driver of jobs, investment and economic transformation. It is growing in these countries at significantly higher rates than in OECD states. Also in general these poor countries are most vulnerable to climate change and at the same time are the ones who create the least green house gas emissions. Tourism must be allowed to grow responsibly to these states and actions to curb emissions must take this into accountâ.
The geographical expansion and labour intensive nature of the Tourism sector provide ?a spread of employment which is particularly relevant in remote and rural areas where ?many of the poor live.
?UNWTO statistics show the growing strength of the tourism industry for developing ?countries:?
International tourism receipts for developing countries (low income, lower and ?upper middle income countries) will soon pass more than US$ 250 billion.?
Tourism is one of the major export sectors of poor countries and a leading ?source of foreign exchange in 46 of the 49 Least Developed Countries.?
Through its ST-EP programme (Sustainable Tourism â Eliminating Poverty), UNWTO ?has put in place a framework for poverty alleviation, linking its longstanding pursuit of ?sustainable tourism with the United Nations Millennium Development Goals and its own ?Global Code of Ethics.
Funding has been approved for 13 ST-EP projects so far, amounting to around US$1 ?million, benefiting 18 countries (Ethiopia, Gambia, Guinea, Honduras, Kenya, Lao, ?Madagascar, Mali, Mozambique, Tanzania, Vietnam and Zambia, and a regional ?project in West Africa). In parallel, 25 ST-EP projects are being implemented by ?UNWTO with funding from the Netherlands Development Organization (SNV) for a total ?of around ⬠1.2 million (Albania, Cambodia, Cameroon, Ethiopia, Montenegro, Nepal, ?Niger, Rwanda, SADC countries, Uganda). Italy, is funding 8 ST-EP projects ??(Colombia, Ghana, Guatemala, Nicaragua, Mali), and funding has been approved for ?additional projects during 2007.
 International tourist arrivals, 1990-2002
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International tourist arrivals
(millions)
Share
(percentage)
in 2002
1990
1995
2000
2001
2002
WORLD
455.9
550.4
687.3
684.1
702.6
100
Africa
15.0
20.0
27.4
28.3
29.1
4.1
Americas
93.0
108.8
128.0
120.2
114.9
16.3
Asia and the Pacific
57.7
85.6
115.3
121.1
131.3
18.7
     North-East Asia
28.0
44.1
62.5
65.6
73.6
10.5
     South-East Asia
21.5
29.2
37.0
40.2
42.2
6.0
     Oceania
5.2
8.1
9.6
9.5
9.6
1.4
     South Asia
3.2
4.2
6.1
5.8
5.9
0.8
Europe
280.6
322.3
392.7
390.8
399.8
56.9
Middle East
9.7
13.6
24.0
23.6
27.6
3.9
Source:Â World Tourism Organization.
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Tourism in Asia and the Pacific region
During the period 1990-2002, growth in tourism in Asia and the Pacific outperformed the rest of the world, with arrivals growing by 7.1 per cent annually (compared with 3.7 per cent for the world), increasing the global share from 12.7 per cent in 1990 to 18.7 per cent in 2002. Over the same period, tourism revenue in the region more than doubled, from $US 40.8 billion in 1990 to $US 94.7 billion in 2002.  Travel and tourism in the region has created 115 million jobs and made a significant contribution to GDP (North-East Asia, 9 per cent of GDP; South-East Asia, 7.56 per cent; South Asia, 4.87 per cent; Oceania, 13.55 per cent).
Given the broad income and employment figures as well as the impacts outlined above, tourism has considerable potential to contribute to poverty reduction in countries of the region. However, in most countries, tourism initiatives are still only at the pilot stage and the measurement of their impact on the poor is inconsistent. It is also well recognized that there can be leakages of foreign exchange from the tourism sectors and that the distribution of the benefits of tourism varies according t according to the market segment on which the country is focusing. Consequently, two of the challenges in the sector are to design tourism interventions that maximize net foreign exchange gains and focus on the potential of improving the living standards of the poor.
With the increased interest in using tourism as a tool for poverty alleviation, there is clearly a need to develop methodologies and indicators that will enable Governments and other stakeholders to understand the impact of various initiatives on the poor and shape future interventions more effectively. In this connection, preparations are under way to organize a meeting on measuring and assessing the impact of pro-poor tourism initiatives and policies at Bangkok in September 2004. The meeting will bring together a group of practitioners working in poverty and tourism to consider methodologies to measure and assess the impact of pro-poor tourism initiatives.
The rising arrival figures do not necessarily mean that the poorer members of a society will also benefit. Nor are increasing numbers of tourists always welcome at a destination. It is therefore vital that destination managers find ways how the poor can obtain ânot crumbs off the table but a share of the cakeâ. In this context, Dr. SantaMaria introduced seven approaches for achieving benefits for the poor from tourism development:
⢠direct employment;
⢠supply of goods and services to enterprises;
⢠direct sales of goods and services to visitors;
⢠running of enterprises (SMEs, community-based);
⢠tax or levy on tourism income;
⢠voluntary giving / support by enterprises or tourists; and
⢠investment in infrastructure.
A study was conducted in order to discover how some of these approaches can be supported. To increase the number of poor people who are directly employed in the tourism industry, for example, three main activities can be suggested: the use of international partnerships and teaching support to âcatch upâ on education and training, the setting up of tourism developments even in isolated rural areas, as well as the support through microfinance initiatives.
The following principles have been adopted by UNWTO and recommended to the governments in connection with Tourism and Poverty Alleviation:
1. Mainstreaming: ensure that sustainable tourism development is included in general poverty elimination programmes. Include poverty elimination measures within overall strategies for the sustainable development of tourism;
2. Partnerships: develop partnerships between international, government, nongovernmental and private sector bodies, with a common aim of poverty alleviation through tourism;
3. Integration: adopt an integrated approach with other sectors and avoid overdependence
on tourism;
4. Equitable distribution: ensure that tourism development strategies focus on more equitable distribution of wealth and services – growth alone is not enough;
5. Acting locally: focus action at a local/destination level, within the context of supportive national policies;
6. Retention: reduce leakages from the local economy and build linkages within it, focusing on the supply chain;
7. Viability: maintain sound financial discipline and assess viability of all actions taken;
8. Empowerment: create conditions which empower and enable the poor to have access to information and to influence and take decisions;
9. Human rights: remove all forms of discrimination against people working or seeking to work in tourism and eliminate any exploitation, particularly against women and children;
10. Commitment: plan action and the application of resources for the long term; and
11. Monitoring: develop simple indicators and systems to measure the impact of tourism on poverty.
Based on these principles, UNWTOâs general programme of work includes a number of activities aimed at maximizing the impact of tourism for the benefit of developing countries in general and LDCs in particular.
RECENT DEVELOPMENTS
There has been an up market trend in the tourism over the last few decades, especially in Europe where international travel for short breaks is common. Tourists have higher levels of disposable income and greater leisure time and they are also better-educated and have more sophisticated tastes. There is now a demand for a better quality products, which has resulted in a fragmenting of the mass market for beach vacations; people want more specialized versions, such as ‘Club 18 -30′, quieter resorts, family-oriented holidays, or niche market-targeted destination hotels. As well, people are taking second short break holidays.
The developments in technology and transport infrastructure such as jumbo jets and low-budget airlines have made many types of tourism more affordable. There have also been changes in lifestyle, such as retiree-age people who living as a tourist all the year round. This is facilitated by internet purchasing of tourism products. Some sites have now started to offer dynamic packaging, in which an inclusive price is quoted for a tailor- made package requested by the customer upon impulse.
There have been a few setbacks in tourism, such as the September 11, 2001 attacks and terrorist threats to tourist destinations such as Bali and European cities. Some of the tourist destinations, including the beach resorts of Cancún have lost popularity due to shifting tastes. In this context, the excessive building and environmental destruction often associated with traditional “sun and beach” tourism may contribute to a destination’s saturation and subsequent decline. Spain’s Costa Brava, a popular 1960s and 1970s beach location is now facing a crisis in its tourist industry. On December 26, 2004 a tsunami, caused by the 2004 Indian Ocean earthquake hit Asian countries bordering the Indian Ocean, and also the Maldives. Tens of thousands of lives were lost, and many tourists died. This, together with the vast clean-up operation in place, has stopped or severely hampered tourism to the area.
Sustainable tourism is becoming more popular as people start to realize the devastating effects of poorly planned tourism on communities. Receptive tourism is now growing at a very rapid rate in many developing countries, where it is often the most important economic activity in local Gross Domestic Product.
In recent years, second holidays or vacations have become more popular as people’s discretionary income increases. Typical combinations are a package to the typical mass tourist resort, with a winter skiing holiday or weekend break to a city or national park.
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“The development of tourism means, above all, social progress, job ?creation and poverty alleviation”.Â
`Â Â Â Â Â Â Â Â Â Â Travel & Tourism has a number of advantages over other industry sectors:
it creates jobs and wealth whilst;
at the same time, it can contribute to sustainable development;
it tends to have low start-up costs;
is a viable option in a wide range of areas and regions;
is likely to continue to grow for the foreseeable future; and
the industry is, in a large part, aware of the need to protect the resource on which it is based – local culture and built and natural environment – and it is committed to these resourcesâ preservation and enhancement.
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Part 2 of a video collage of the Kamara family farming in The Gambia. … gambia africa farming farm peanuts
“For the second consecutive year Sierra Leone has come last in the UN Development Program ranking of human development indicators of 179 countries, which according to Engilbert Gudmundsson, World Bank Sierra Leone country director, âshould be a call to action for everyone who is interested in the well-being of ordinary people in Sierra Leoneâ. Â Sierra Leone’s maternal mortality indicators â the highest in the world â continue to drag the country down, according to UNDP-Sierra Leone deputy country director Samuel Harbor. Of every 100,000 live births, 1,800 women die according to the UNDP figures, while one in four children die before they reach age five.
While Sierra Leone emerged from conflict almost a decade ago, progress in rehabilitating the economy and building up basic health and education services has been slow, says West Africa regional World Bank country director, Ishac Diwan. Just half of Sierra Leone’s primary schools are functioning, many of them in inadequate conditions, and secondary school attendance is still only at 44 percent, according to the UN. But the government is cash-strapped. “Sierra Leone is very poor, so simply put, the ability of the government to put in place development measures is very limited,” said Richard Moncrieff, West Africa regional director of think-tank the International Crisis Group (Thomson Reuters Foundation, 2008). Â
For ordinary Sierra Leoneans, the true anguish of the slow development pace is taking its toll on them. If government intervention remains sloppy and erratic, the consequences will be grim both ethically and politically.
Politicians and policymakers do in fact have it in their power to change the trend of the human development index for Sierra Leone if only they are genuinely interested in fighting corruption vis-à -vis development, peace and human security. But so far, President Ernest Koromaâs All Peopleâs Congress (A.P.C.) administration does not seem to have all the answers to the numerous problems facing the poor and exploited masses nor does his political program seem to differ with that of the Sierra Leone Peopleâs Party (S.L.P.P.) it replaced. The people of Sierra Leone remain isolated from their own resources deprived of even the basic social services (energy, tap water and housing) required for growth and development. This has had the immaculately dysfunctional consequence of further worsening the living conditions in the country with still a low life expectancy, high infant mortality rates, a declining economy and a vastly hungry population which were the hallmarks of Tejan Kabbahâs policies and eleven years in office. Instead, the new political elite have, unsurprisingly, turned their rise to power into an opportunity. Â
[Absurdly,] law makers in Sierra Leone are not only asking for four thousand dollars (US$ 4,000 or Le 12 million) per month but are also requesting a soft loan of USD$ 45,000 as car loan. They are asking for a 30 percent (%) payment of the cost over a three year period. These MPs want 70 percent (%) of the car loans absorbed by the budget, paid for by the tax payers. We are even told the initial recommendation was in a threshold of six thousand dollars (US$ 6,000) monthly, advocated for by the president, referring to it as reasonable payment. Granted the MPs current take home pay of US$ 768 (Le 2,288,745) per month is one of the smallest in the sub-region, but conservatively the said amount is the envy of many civil servants, who sadly do not even make US$ 20 per month.
Where were the MPs when they got bulldozed in the passage of some US$ 300,000 for a mere presidential inauguration or other travel expenses to the Gambia and other places, or the setting up of a commission of inquiry when there is an already established Anti-corruption Commission unit? Had the MPs being truthful in taken up tough issues, there is no way the so-called WANZA pay out running into billions can even be accommodated, or the Income electric electrification deal currently costing the nation unprecedented bill to service. The MPs can justify their request by holding an investigation into the process to make some savings in this bizarre operations condemned by the ACC but fell short to offer punitive measures (Concord Times, 2008).
Interestingly, Abdul Serry-Kamal, the countryâs Attorney General and Minister of Justice, took it as a chance to engage in acts which did not properly serve the interest of the people of Sierra Leone when wrapped up in that deal that gave the Lebanese merchant Mohamed Wanza $25,000,000.00 for spurious claims against the people of Sierra Leone. The local tabloid has portrayed the Wanza deal as demonstrating the failure of responsible governance (with âpeople with ancillary interests (rumored to include the Attorney General himself in receiving various unspecified shares of the settlement) would have received their cutsâ to make the deal work for Wanza) (The New People Newspaper, 2008).
The real challenge is not the technical difficulty of nation building but the political difficulty of confronting the lobbying interests and illusions on which current policies rest. Ending corruption in Sierra Leone will involve three politically challenging steps. First, contrary to the romantics, the country needs severe punishment for corruption crimes, not less. The Singaporean model of crime and punishment, for instance, has some good lessons Sierra Leoneans can learn from. Â
“Singaporeâs legal system might seem unusually severe. Although Singapore does not hand out the death penalty randomly, Amnesty International states that Singapore has one of the worldâs highest rates of execution relative to its population for drug trafficking and crimes of corruption. Even minor civic violations such as spitting, littering, or dropping cigarette butts on the street are dealt with heavy fines. [Singaporeâs severe legal system thus seems to be working because Singapore is considered] one of the cleanest, greenest cities in the world, and a popular tourist destination, receiving over eight million visitors a year. At just 700 square kilometers, Singapore has an annual GDP that competes with leading nations of Europe. This gives it the worldâs fourth most competitive economy, placing it ahead of the United States. The city-state also boasts a high standard of living, low unemployment, and a literacy rate of 98 percent. Singapore has 12 times the population of Vancouver but just half the crime rate” (Pacific Rim Magazine, 2008).
Multi-Sectoral Strategy against Corruption
Typically, in contemplating on a solution to a problem, people look to its causesâor, yet more absurdly, to its “root” cause. But there need be no rational correlation between the cause of a problem and fitting or even just realistic solutions to it. Such is the case with the development crisis in Sierra Leone. The root cause of the development problems Sierra Leone faces is the illusion and greed that sustains its systemic corruption. Corruption in government accounts for the failure of successive leaderships in addressing the countryâs sluggish economic development and improving its human development index score.
Despite its potential, Sierra Leone remains among the poorest nations in the world with dependency on a ward of foreign donors because it does not have the economic resources to develop its economy. The country will still need a large base of sustained foreign support to significantly lift the standard of living of its people. Most of the foreign investment however will be in the mining sector, even though the sector creates relatively few jobs, though generates significant profits. The countryâs basic infrastructure meanwhile remains inadequate, particularly faced with issues of insufficient electric supply, a marked lack of health infrastructure and the inadequate delivery of basic services. There is also a dearth of skilled manpower available to meet the demands of a constructive national development strategy and the countryâs unreasonable transport structure also needs upgraded. Clearly, Sierra Leone still has a lot of ground to make up from many years of political instability and the horrors and devastation caused by the Civil War of the 1990s.
The IMF Country Staff Report No. 08/249, a Second Review under the Three-Year Arrangement under the Poverty Reduction and Growth Facility has shown performance to be mixed under the Fund-Supported Program with an output growth of 6.8 percent and broad-based, but missed key fiscal revenue and spending objectives clouded by slow progress on the structural reform front. Also, the output growth has been matched with significant revenue shortfalls in the second half of 2006 (0.7 percent of GDP) and 2007 (2.4 percent of GDP) derailed the PRGF arrangement. These shortfalls have only become more common with the leadership volatility that accompanies governing Sierra Leone. Accordingly, against a backdrop of relentlessly corrupt players in government, stable development has fluctuated more sharply as well.
The unambiguous losers when it comes to the relentless corruption in government are the poor people of Sierra Leone. The majority of the population of Sierra Leone barely makes ends meet day by day. Being poor, they are inevitably squeezed by bad management of the natural resources of the country, and by cruel implications of the illusions and greed that define the Sierra Leone society, the poor people of Sierra Leone does not seem to have any chance. The hungry youth that constitute a huge percentage of the marginalized poor are the unlikely victims who have not accepted their fate quietly. For decades, hunger among the youth has provoked the same response: riots â the classic political base for populist politics.
Also, at the end of the corruption chain, comes the real crunch: as poverty deepens among the rural-urban poor, those most likely to go hungry are children. Growth stunting is common among malnourished young children who remain in these poor rural-urban environments. Stunted growth is not merely a physical condition; it affects the complete physical, mental and social well-being of these young children. It is an irreversible condition that lasts a lifetime, and indeed, some studies find that it is passed down through generations. And so although the persistence of poverty in Sierra Leone is today’s news, if it is not decisively dealt with all seriousness at this time, its consequences will seal the fate of Sierra Leone which is already at the precipice of self-annihilation because of the political stakeholdersâ inability to change their behaviors.
In short, national corruption must be dealt with, and it must be dealt with seriously, because the adverse consequences of corruption are so persistent and are the conditions responsible for the poor human development index rating for Sierra Leone. The question is how. The flaw is not in the people. The solution must come from the political leadership. That kind of leadership that could address the endemic corruption in the society has been talked about for decades, but it now must be taken more seriously.
Fortunately, policymakers have the power to do all of this: by changing anti-corruption regulation they can make laws more draconian and effective; by encouraging organizational changes within the Anti Corruption Commission (A.C.C.), they can make the A.C.C. more relevant and a force for good; and by encouraging innovations in technology and its integration in all government departments, they can regulate better the workings of government. When corruption is effectively contained the key parameters in advancing development, which are to (i) mobilize more domestic revenue; (ii) reorient public spending to infrastructure projects and poverty-reducing programs; (iii) prevent rapid accumulation of public debt; and (iv) accelerate implementation of structural reforms, can be better coordinated. Such structural reform agenda has to be revitalized to sustain growth in order to progress toward the Millennium Development Goals (M.D.G.s).
Program Objectives and Policies of the Poverty Reduction and Growth Facility (PRGF)
The key medium-term objectives of the PRGF-supported program which have been revised by the current administration in Sierra Leone projected a real GDP growth to be slightly lower but still strong at 6 percent, and double-digit inflation is expected to linger beyond 2010, assuming lagged spillovers from higher food and energy prices. With the policy objectives for 2008 to consolidate macroeconomic stabilization and prepare for sustained high growth over the medium term, the macroeconomic framework for 2008 at a real GDP growth of 6 percent has acquired a strange allure. Macroeconomics based on further expansion of agricultural, manufacturing, construction and service activities is prized as constructive in both its literal and its metaphoric sense. (The Breton Woods institutions are its leading apostles). In its literal sense, macroeconomic development is now a premium strategy, a development brand through which improvements in education and infrastructure and lower inflation levels would lead to both growth and progressive distributional change. In its metaphoric sense, it represents the antithesis of large government, hierarchical, pressured institutions in which government is made to work leading to faster growth. The Breton Woods institutions have suggested a model framework necessary to preserve institutions in Sierra Leone as efficiently functioning intuitions.
But distressingly, Sierra Leone institutions show little inclination to preserve themselves as functioning institutions. Given the chance, politicians come to these institutions and all they do is to embezzle and misappropriate government resources rendering institutions unproductive. This is because Sierra Leoneans believe the sure way of becoming fiscally adequate is by having access to government resources. The political life forces many educated Sierra Leoneans into the role of political activism, a role for which most take on with the ulterior motive of enriching themselves at the expense of national development programs. In successful market economies, political activism is a minority pursuit; most people opt for entrepreneurship so that others can have the worry and grind of running a government.
In modern political practice, selfless patriotism is helpful. In modern governance, corruption is an abomination, technology is essentially relevant to effective governance, and rigid regulatory standards are the holy grail of anti corruption measures. Far from being the answer to national lack of development, the political rhetoric about anti corruption measures does not have the force of law in a country that has not made any real effort to develop itself after independence.
Successful societies are better suited to cope with less draconian anti corruption laws and regulation. Yet since it got her independence from Britain, Sierra Leone has not been serious about making development work, basing political strategies instead on rhetoric and lies. This neglect is all the more striking given the persistence of corruption and poverty driven by the illusion and greed of the political elite.
The critical challenges for Sierra Leone remain to enhance recovery; sustain democratic governance, peace, justice and security; protect the human rights of vulnerable groups; create employment, particularly for youth; increase capacities for managing development and tackling income poverty; broaden political participation, especially amongst marginalized groups such as women and youth; accelerate the pace of social advancement; and reduce the heavy dependence on Official Development Assistance (O.D.A.). These key priorities are articulated in the conclusions of the Consultative Group Meeting in December 2006, the Peace Consolidation Strategy agreed with the Peacebuilding Commission and other economic development planning documents.
Making Governance Work
The five reforms â judicial reform, civil society and media, reform in the health services system, reform in tax, customs, and police administration, reform in the center for combating economic crime and corruption â fit together economically and politically. Measures have to be constructive measures to support reforms to reduce corruption and improve transparency and accountability. Good governance fundamentally underpins effective poverty reduction and sustained economic growth through government that is competent, transparent, non-corrupt, and responsive to the needs of its people. Reliable players in legislating laws and ensuring an equal playing field are essential in promoting lasting development, as is a reliable judicial system that adjudicates fairly. Only a practice of genuine democracy in Sierra Leone can harness the talents of all its citizens and allow them opportunities to realize that potential in the open marketplace of goods and ideasâa brand of development strategy echoed in the 2002 Monterrey Consensus, which states that: “Good governance is essential for sustainable development. Sound economic policies, solid democratic institutions responsive to the needs of the people and improved infrastructure are the basis for sustained economic growth, poverty eradication and employment creation” (U.S. Department of State, 2007).
It is time for Sierra Leoneâs political elite to make conscious, determined efforts to pursue democracy and to rule justly, sometimes in challenging contexts. Politicians should now be seen to take substantive steps that increase transparency and good governance, both to expand freedom and democracy and because those policies have the greatest chance of reducing poverty and benefiting the lives of ordinary citizens. Such policies have the potential to attract growth-oriented foreign development assistance and investment (such as meeting the qualifying criteria for the Threshold Program of millions of dollars of assistance from the Millennium Challenge Account (M.C.A.) managed by the Millennium Challenged Corporation (M.C.C.), a US-based corporation) that can have powerful multiplier effects, both economically and in terms of democratic governance.
The defining principle of a Koroma administration National Development Strategy is reform that needs to be supported by messages of equal potency. The Koroma administration cannot expect to eliminate national development risks by being lenient with corruption in government. Government in Sierra Leone should understand how to set priorities and consider inescapable tradeoffs and opportunity costs. A responsible strategy should strive for reform to control corruption and providing material and technical assistance in five distinct component areas:
Component One: Judicial reform, with commitment to:
o   Reduce opportunities for corruption in the judiciary through increased transparency and accountability.
o   Automate the organizational management and functioning of the courts.
o   Improve Court procedures.
o   Clarify the roles of court personnel.
o   Providing training, court infrastructure improvements, and better management and IT systems.
o   Refocus priorities which recognize the priority to provide âprimary justiceâ â in other words justice at the community level with a formal legal system.
o   Making sure that alternative systems for delivering justice (including through chiefdoms) are functioning properly and fairly.
o   Dealing with the backlogs and delays that continue to beset the formal justice system â civil, criminal and juvenile.
o   Putting in place new institutional arrangements to enhance cooperation, coordination and communication between the many actors involved in the justice sector.Â
Component Two: Civil society and mass-media reform, with commitment to:
o   Support NGO monitoring of all components and initiatives.
o   Build the capacity of Sierra Leonean NGOs and mass media.
o   Implement reforms and new Government policies that can enable civil society and mass media organizations to effectively play their roles as monitors of government policy and performance.
o   Educate the public.
o   Build effective models of NGO/government partnership.
Component Three: Reform in the health services system, with commitment to:
o   Complement its ongoing efforts to make quality health care more accessible and transparent to all patients.
o   Reduce opportunities for corruption in the health care delivery system by limiting the discretionary powers of health care providers, budget managers, and procurement agents.
o   Establishment of norms and standards and by increasing accountability through increased oversight.
Component Four: Reform in tax, customs, and police administration, with commitment to:
o   Improve capacities and transparency in tax collection and customs administration
o   Improve institutional and human resource capacities in police administration
o   Improve Ethics Code implementation systems.
Component Five: Reform in the Anti Corruption Commission (A.C.C.), with commitment to:
o   Provide technical assistance to help the A.C.C. implement institutional reforms to decentralize the agency
o   Improve institutional and human resource capacities in police administration.
o   Help create an independent Civilian Board to monitor the activity of the A.C.C. and to advise the A.C.C. Commissioner.
o   Improve institutional and human resource capacities.
o   Enhance whistleblower protection mechanisms.
o   Improve delivery of social services in terms of quality, quantity and process.
Setting a Few Examples
Sierra Leonean political heavy weights will definitely need to do some genuine rethinking. The people most attracted to containing corruption through assertive leadership are potentially the constituency that could save Sierra Leone from its ruinous governance policies. The players in power in Sierra Leone indeed need to be serious about eliminating their dependence on corruption and recognizing a comprehensive approach to the process of reform with a national development strategy becoming an integral part of the overall process rather than a stand alone instrument for combating corruption. Sierra Leonean politicians are quite simply too profligate when it comes to their use of government resources as they do sustain a high-income lifestyle. The Sierra Leone Anti Corruption system needs to be shifted from burdening work to discouraging crimes of corruption with all entities constituting the pillars of integrity demonstrating zero-tolerance to corruption in all its forms and the supremacy of the law prevailing.
The mark of a good politician is the ability to guide citizens away from corrupt practices. Unless countered, corruption will continue to block the policies needed to address the human development index crisis in Sierra Leone. Properly informed, many citizens will rethink their priorities, but politicians will need to deliver these messages and forge new alliances. If corruption and poverty conditions are not dealt with decisively, the youth and rural-urban children will remain hungry and disoriented, and there is no hope for Sierra Leone. Setting a few examples by experimenting with the Singaporean legal system of justice against crimes of corruption is a small price to pay.
MANAGING GLOBAL ECONOMIC CHALLENGES
INTRODUCTION:
The modern day global economy is a highly interconnected one. With the increased connectivity the challenges before the global economy has achieved an altogether new dimension. On one hand is the positive impact of instant access to the global information network. On the other hand, market volatility is using the economic inter linkage channels to spread like wildfire.
The International Monetary Fund revised down the estimated world growth rate for 2008. This was a fall out of the US sub prime crisis. At present economies through out the world are facing stock market volatility and rising unemployment figures as an after effect of the US crisis.
As per estimates, around one billion people worldwide survive on less than a dollar per day. Over one billion do not have access to clean water. Basic sanitation facilities are absent for around 2.4 billion people. Around 5 million children worldwide die from starvation.
CHALLENGES BEFORE THE GLOBAL ECONOMY:
To sum up, the challenges before the global economy are by no means simple. Timely intervention in the form of appropriate policies and fiscal help from the world bodies are needed to tide over the crisis. No less important is the political will needed for the seamless implementation of the policies.
1.Poverty
Sub-Saharan Africa has been witness to the most severe form of poverty. Nearly 50% of the population survives on less than $1-a-day. Malnutrition, internal conflicts, dreadful diseases like AIDS and improper governmental measures are the main reasons behind this extreme poverty.
As far as poverty goes, it is the Southeast Asia that comes next to sub-Saharan Africa. Around 85% of the total population of the Southeast Asia survives on below $2-a-day.
Despite 50% of population living under $2-a-day, the number of poor people in Eastern Asia and Pacific has declined significantly in recent past. It is mainly due to the social and economic progress achieved by China over the passage of time.
When it comes to Latin America, inequality in income distribution resulting from poverty is a matter of great concern.
Some 300 million of India’s people still live in abject poverty, and another 300 million hover precariously above the poverty line. One challenge is to reach the poor with programs and policies that work
2. Inflation
Considering the failure of US sub prime market and the subsequent recession in US economy, controlling the increasing rate of inflation is the greatest challenge that the world is confronting for some time now. The Indian and Chinese governments are taking care of the inflationary situations very seriously. In Europe, interest rates have been maintained at higher side to keep inflation under control. Fiscal policy measures like reducing government expenditure and increasing rate of taxation can also be used to check inflation. Attempts are on to bring about regulatory changes to face the challenge of inflation.
3. Inequality
Globalization is considered by many to be the main cause behind the perpetration of an increased income inequality in wide areas of the globe. However, an increased trade globalization has only worked towards the eradication of this inequality. The need of the hour is policies, which will ensure that the proceeds from technological innovation and globalization are distributed among the cross section of a country’s population. Developing countries are primarily agriculture based and they can promote agricultural exports for reaping the benefits of trade liberalization.
4. Climate change
Environmentalists all over the world are trying their best to protect the planet from the adverse effects of climate change. The European Union has played a crucial role in these movements. The primary objective of the Convention has been to urge the developed nations to check the emission of greenhouse gas. The target regarding greenhouse gas emission that has been set in Kyoto Protocol needs to be achieved within the period of 2008-2012.
The European Climate Change Program or ECCP in another major initiative towards environment protection. However, to control the emission of greenhouse gas it is necessary to create general awareness among the common people. Substantial change in energy system, use of environment-friendly technologies in production, alternative energy efficient fuels, minimum use of fossil fuels and change in the pattern of living are the key factors that can bring about positive changes in environment.
5. Rising food prices
The urban poor will be affected the most due to this rising food prices. In most of the sub Saharan country, the common trend is that the farmers leave their land and head to other lines of production in the urban areas.
According to the World Food Program, the countries that are most affected are Eritrea, Gambia, Togo, Cameroon, Niger, Senegal, Zimbabwe, Haiti, Myanmar, Yemen, Cuba etc.
6.Trade”- key to lower food prices
Opening up of economy or trade liberalization can help to reduce food prices. Different countries have adopted different measures of trade in order to deal with the escalating food prices. Saudi Arabia has resorted to import tax cuts on wheat from 25% to zero. Tariff is also decreased for dairy products, vegetable oil and poultry. India slashed its tariffs on maize and edible oils. Export of rice was also stopped leaving out the high value basmati. For the last 2-3years India has to fill the demand supply mismatch in food through imports. There are high exporting countries like Ukraine, which are also imposing export restrictions on its food products.
7. Agflation in the global economy:
Structural changes within an economy are an important reason behind Agflation. There is a rise in per capita income in the populated countries like India and China. Consumption of food grains as feedstock has also increased. According to the International Grain Council, the world grain production would reach 1660m tones in 2008, which exceeds the previous year by 90m tones. Even then demand is likely to outdo supply. Inflation in the agricultural sector can be attributed mostly to crops like coffee, corn, wheat, and soybeans, sugar, cocoa and meat and poultry products.
8. Trend in demand for and supply of food grains:
It is estimated that the world population will rise by 800 million per decade till 2025. The production of food grains is expected to rise to 2.67 billion by 2025 so as match the demand level. It is also estimated that there will be a regional mismatch in the demand of food grains across different regions.
9. Role of internaitional organisations:
The objective of international organization is to study, collect and propagate information, setting up of laws that are internationally accepted. The international organizations also help in cooperation between different countries by setting up negotiation deals between them. The international Organizations also help in technical assistance.
The International Organizations play an important role in collecting statistical information, analyzing the trends in the variables, making a comparative study and disseminate the information to all other countries.
There are some international organizations that perform certain supervisory functions. The function of the international organizations is setting up multilateral or bilateral agreements between countries.
Another function, that has assumed importance in the recent times, is lending out technical cooperation to the member countries. Amongst all the roles and activities of the international organizations, the most important is negotiating and setting up multilateral agreements. Minimizing the transaction costs can strengthen the cooperation between different countries.
10. Public health care and primary education:
The other challenge is to make public service providers, and the entire state apparatus, much more responsive and accountable to all citizens, especially the poor. Today, basic public services are deteriorating. These include such frontline services as public health care and primary education. And, the poor are the most affected
Response to the Challenges of the 21st Century:
poverty reduction – providing opportunities for a better life for the poor. This challenge is particularly acute in Asia which is home to two-thirds of the world’s poor Ongoing globalization – Globalization opens up opportunities for developing countries, facilitating wider and faster access to capital, technologies, know-how and markets. On the other hand, globalization also comes with associated risks. Globalization may bring in financial volatility, and even economic and social disruptions. Asian countries should not, however, turn their backs to globalization. Instead, they should try to prepare themselves to ease the integration into the global market. Promotion of regional cooperation – Regional cooperation beyond national boundaries contributes to realizing economies of scale, enhancing complementarity among neighboring countries, and ensuring regional peace and stability.
Conclusion:
India’s GDP growth has soared from 5-6% a few years ago to 9% today. If this growth is sustained, as the 11th Plan hopes to do, average living standards will rise and poverty will be reduced. India will become a middle-income country in three years time instead of six, crossing the Bank’s current threshold of $875 per capita income to do so. Its per capita income will double in the next seven years, instead of ten. In fact, by 2025, India’s average per capita income could well surpass Thailand’s and reach where Malaysia is today. This will amount to creating fifty East Asian “miracles” within two decades. For a young Indian entering the work force today, this will be about the time she takes to reach her peak productive years.
Submitted By,
Ms. G.P.Divya
&
Ms. S.Padmavathi
Lecturers (M.B.A)
SSM Academy of Textile Management, Erode.
World Currencies (not all countries are listed)
If every country had the same currency, the upper class would get bored, and so countries have different currencies (with some exceptions).
Listed alphabetically (by country/kingdom);
All countries using the ‘Euro’ are part of the EU, however, not all members of the EU use the Euro!
Afghanistan – Afhani
Albania – Lek
Algeria – Algerian dinar
Andorra – Euro
Angola – Kwanza
Antarctica – Norwegian krona
Argentina – Neuvo peso
Armenia – Dram
Australia – Australian dollar
Austria – Euro
Bangladesh – Taka
Barbados – Barbados dollar
Belgium – Euro
Botswana – Pula
Bouvet Island – Norwegian krona
Brazil – Cruzeiro Real
Bulgaria – Lev
Cambodia – Riel
Canda – Canadian dollar
Chile – Chilean peso
China – Yuan Renminbi
Colombia – Colombian peso
Costa Rica - Costa Rican colón
Croatia – Kuna and Croation dinar
Cuba – Cuban peso
Cyprus – Euro
Czech Republic – Czech korona
Denmark – Danish krone
Dominica – East Caribbean dollar
Ecuador – US dollar
Egypt – Egyptian pound
El Salvador – US dollar
Estonia – Kroon
Ethiopia – Birr
European community – Euro
Falkland Islands – Falkland pound
Faroe Islands – Danish krone
Fiji Islands – Fiji dollar
Finland – Euro
France – Euro
Gambia – Dalasi
Georgia – Lari
Germany – Euro
Ghana – Cedi
Greece – Euro
Greenland – Danish krone
Guadeloupe – Euro
Guam – US dollar
Haiti – Gourde
Honduras – Lempira
Hong Kong – Hong Kong dollar
Hungary – Forint
Iceland – Icelandik kroná
India – Indian Rupee
Indonesia – Rupiah
Iraq – Iraqi dinar
Ireland – Euro
Israel – Shekel
Italy – Euro
Jamaica – Jamaican dollar
Japan – Yen
Jordan – Jordian dollar
Kenya – Kenyan shilling
Kiribati – Australian dollar
Kuwait – Kuwaiti dinar
Latvia – Lats
Lebanon – Lebanese pound
Liberia – Liberian dollar
Liechtenstein – Swiss Franc
Lithuania – Litas
Luxembourg – Euro
Macao – Pataca
Malaysia – Ringgit
Maldives – Rufiyaa
Mali – Malian Franc
Malta – Euro
Marshall Islands – US dollar
Mayotte – Euro
Mexico – Mexican new peso
Monaco – Euro
Mongolia – Tugrik
Morocco – Morrocan Dirham
Mozambique – Metical
Nauru – Australian dollar
Netherlands – Euro
New Zealand – New Zealand dollar
Nigeria – Naira
Niue - New Zealand dollar
Norfolk Island – Australian dollar
Norway – Norwegian krone
Oman – Rial Omani
Pakistan – Pakistani Rupee
Palau – US dollar
Paraguay – Guarani
Peru – Philippines peso
Poland – New zloty
Portugal – Euro
Puerto Rico – US dollar
Réunion – Euro
Romania – Romanian Leu
Rwanda – Rwandan franc
Samoa – Tala
Saudi Arabia – Saudi Riyal
Sierra Leone – Leone
Singapore – Singapore dollar
Slovenia – Euro
Somalia – Somali shilling
South Africa – Rand
Spain – Euro
Sudan – Sudanese pound
Sweden – Swedish krona
Switzerland – Swiss franc
Thailand – Baht
Tonga – Pa’anga
Tunisia – Tunisian dinar
Turkey – New Turkish lira
Tuvalu – Australian dollar
Uganda – Ugandan shilling
Ukraine – Hryvna and Karbovanets
United Arab Emirates – UAE dirham
United Kingdom – Great British Pound
United States of America – US dollar
Uruguay – Uruguayan peso
Vanautu – Vatu
West Africa – West African Franc
Zimbabwe – Zimbabwe dollar
If you are planning to buy some consumer electronic devices, you must be sure to know beforehand if this electrical appliances or electronic devices that you want to buy will be compatible with the voltage and plug shapes in your own country.
If your devices accept your country’s voltage, but have a different shape of plug, you will need a plug adapter.
If your devices do not use the same voltage in your own country, you will need a voltage converter.
You can check the Voltage, Frequency and Plugs types as follows OR in attached world voltage & plug specifications.pdf
Asia Pacific
Country Voltage Frequency (Hz) Plug Category Description
Australia 240V 50 C & D 3 flat blades (Australia AS3112): YP-35, YP-36
China 220V 50 D & J China plugs: YP-02, YP-02L, YP-03, YP-03L
Hong-Kong 220V 50 I 3 flat blades (UK BS1363):YP-60
Indonesia 220V 50 E & G European plugs (CEE7): YP-21, YP-22, YP-23
India 230V 50 I & L 3 flat / round blades UK standards: YP-60, YP-80
Japan 100V 50, 60 A & B Japan JIS 8301 plugs
Korea 220V 50, 60 E & G Korea KCS 8305: YP-21K, YP-22K, YP-24K
Macau 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Malaysia 230V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
New-Zealand 220V 50Hz C & D 3 flat blades (Australia AS3112): YP-35, YP-36
Philippines 220V 50Hz E European plug (CEE7/7): YP-21
Singapore 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Thailand 220V 50Hz A & B vertical flat blades without/with round ground pin
Vietnam 120/220V 50Hz A, B, E & G vertical flat blades without/with round ground pin
European plugs (CEE7): YP-21, YP-22, YP-23
North America
Country Voltage Frequency (Hz) Plug Category Description
Canada 110V 60 A & B vertical flat blades without/with round ground pin
United States 120V 60 A & B vertical flat blades without/with round ground pin
Central & South America
Country Voltage Frequency (Hz) Plug Category Description
Mexico 127V 60 A & B vertical flat blades without/with round ground pin
Nicaragua 110V 60 A & B vertical flat blades without/with round ground pin
El Salvador 110V 60 A & B vertical flat blades without/with round ground pin
Honduras 110V 60 A & B vertical flat blades without/with round ground pin
Nicaragua 110V 60 A & B vertical flat blades without/with round ground pin
Costa Rica 110-120V 60 A & B vertical flat blades without/with round ground pin
Panama 120V 60 A & B vertical flat blades without/with round ground pin
Dominican Rep. 110V 60 A & B vertical flat blades without/with round ground pin
Columbia 115V 60 A & B vertical flat blades without/with round ground pin
Venezuela 110V 60 A & B vertical flat blades without/with round ground pin
Ecuador 110V 60 A & B vertical flat blades without/with round ground pin
Brazil 110V / 220V 60Hz / 50Hz E & G Brazilian standard NBR 14136: round pins
Peru 110V / 220V 60Hz / 50Hz A, B & E vertical flat blades without/with round ground pin
Bolivia 110V / 220V 60Hz / 50Hz A, B & E vertical flat blades without/with round ground pin
Paraguay 220V 50Hz E 2 round pins (CEE7):YP-21
Uruguay 220V 50Hz E 2 round pins (CEE7):YP-21
Argentina 220V 50Hz C & D 3 flat blades (IRAM): YP-37, YP-57
Chile 220V 50Hz E & N European plugs / Italy plug: YP-45
Europe
Country Voltage Frequency (Hz) Plug Category Description
Austria 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Belgium 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Czech Rep. 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Denmark 220V 50Hz O, E, F & G European plugs / Denmark plug: YP-26
Estonia 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Finland 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
France 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Germany 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Greece 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Hungary 220V 50Hz F & G European plugs:YP-22, YP-23, YP-24
Ireland 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Italy 220-230V 50Hz E & N European plugs / Italy plug: YP-45
Latvia 220-240V 50Hz E & G European plugs: YP-21, YP-22,YP-23
Luxembourg 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Netherlands 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Norway 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Poland 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Portugal 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Slovak Rep. 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Spain 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Sweden 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Switzerland 220-224V 50Hz M & E European plugs / Swiss plug:YP-46
Turkey 220V 50Hz E & F European plugs:YP-21, YP-24
Russia 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
United Kingdom 220-240V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Ukraine 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Middle East
Country Voltage Frequency (Hz) Plug Category Description
Bahrain 220V 50Hz I & K 3 round pins UK standard: YP-81 & YP-80
Dubai 220V 50Hz G European plugs: YP-24
Iran 220V 50Hz E European plugs: YP-21
Israel 220-240V 50Hz P & E Israel plugs: YP-47, YP-48
Jordan 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Kuwait 220-240V 50Hz E & I European plugs (CEE7) / UK plug (BS1363)
Lebanon 220V 50Hz E European plugs (CEE7/7):YP-21
Syria 220V 50Hz E, F & N European plugs / Italy plug: YP-45
Saudi Arabia 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Turkey 220V 50Hz E & F European plugs:YP-21, YP-24
Africa
Country Voltage Frequency (Hz) Plug Category Description
Algeria 220V 50Hz E & G European plugs:YP-21, YP-22, YP-23
Burkina Faso 220V 50Hz E & F European plugs:YP-21, YP-24
Cameroon 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Chad 220-250V 50Hz F, G & L European plugs (CEE7) / UK plug (BS546)
Equatorial Guinea 220V 50Hz E & F European plugs:YP-21,YP-24
Gabon 220V 50Hz G European plugs:YP-24
Gambia 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Ghana 220V 50Hz E, I & K European plugs (CEE7/7) / UK plug (BS546)
Malawi 240V 50Hz I 3 flat blades (UK BS1363):YP-60
Mauritius 240V 50Hz E & I European plugs (CEE7) / UK plug (BS1363)
Morocco 220V 50Hz E & G European plugs:YP-21, YP-22, YP-23
Nigeria 230V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61
Rep. South Africa 220V 50Hz K & L 3 round pins SABS standard: YP-81 & YP-80
Senegal 220V 50Hz E, F & G European plugs:YP-21, YP-22, YP-23, YP-24
Swaziland 220V 50Hz I 3 flat blades (UK BS1363):YP-60, YP-61