Why Kazakhstan is the Investment Destination to Watch in 2025

December 23, 2024

The investment climate in 2024 has looked cautiously optimistic, although prospects are clouded by the perennial uncertainty of economic conditions. While global foreign direct investment modestly recovered, major challenges remain, such as geopolitical tensions and inflation in developed markets. As a result, investors are seeking new emerging markets. Among them, Kazakhstan, the largest and most economically developed country in Central Asia, is one of the options on the table. Situated at the juncture of Europe and Asia, possessing significant natural resources, and pursuing an economic diversification policy, the country is worthy of closer attention.

Diversification Beyond Oil and Gas

Kazakhstan has historically been dependent on oil and gas, yet in recent years it has been diversifying its economy. According to preliminary estimates, Kazakhstan’s GDP growth for the first 11 months of 2024 reached 4.4%, primarily driven by the development of the non-oil sector. Over 70% of economic growth came from manufacturing, trade, agriculture, and construction. Overall, domestic goods production grew by 5%, while services rose by 4.5%.

Additionally, state support measures have boosted the share of micro, small, and medium-sized enterprises (SMEs) in Kazakhstan’s economy by 1.8%, reaching 38.2%. As of December 1, the number of active SMEs increased by 1.5%, surpassing 2 million enterprises.

The country’s economic diversification is also based on its privatization program, which aims to reduce state involvement in the economy and improve market efficiency. Around 675 public and quasi-public companies are planned to be privatized in 2021-2025.

One aspect of the privatization initiative is the “People’s IPO” program, which allows citizens to acquire shares in major state-owned enterprises. In 2024, the Samruk Kazyna Sovereign Wealth Fund commenced IPOs for several of its portfolio companies. Specifically, Air Astana, Kazakhstan’s flagship carrier, successfully completed its IPO in February 2024.

In May 2024, Kazakhstan’s President, Kassym-Jomart Tokayev, signed a decree on measures to liberalize the economy. The objective is to create a more competitive business environment, encourage private sector development, and reduce the involvement of the state in the economy.

Technology and ICT

Kazakhstan’s “Digital Kazakhstan” program is a particular selling point for the country. The focus of the program is on digitizing the economic sectors, developing safe communication networks, and promoting entrepreneurship in the tech field.

The creation of the Astana International Financial Centre (AIFC) in 2017 has fired up the digital economy. With a legal system based on English common law, tax holidays, and fintech-friendly policies, the volume of investments attracted through the AIFC has reached $14 billion, $6.7 billion of which are portfolio investments on the Astana International Exchange. More than 3,400 companies from 85 countries have been registered at the AIFC.

Moreover, Kazakhstan is actively involved in developing its artificial intelligence sector, which is now central to its digital initiatives. In July, the government adopted the Concept for Artificial Intelligence Development for 2024-2029, which aims to establish an AI ecosystem that would contribute to the development of all sectors of the economy. A key project in this regard is the creation of the Alem.AI International Center. It will include research and development labs, a programming school, and offices for international technology companies.

Critical Metals and A Global Trade Gateway

Kazakhstan is also becoming an important player in the global supply chain of rare earth metals and essential minerals, which are required for high-tech industries and the green energy transition. The country is expanding exploration and forging international partnerships. Kazakhstan has a vast resource base, with 124 identified deposits of rare and rare earth metals, though only 37 have been explored so far. According to the World Bank, more than 5,000 undiscovered deposits worth over $46 trillion may exist in the country. Recent exploration showed about 800,000 tons of valuable minerals. At the same time, the country has voiced its commitment to environmentally responsible mining.

Kazakhstan leverages its geographical advantage of being located between China and Europe, especially through the Trans-Caspian International Transport Route, which is also known as the Middle Corridor. It connects China and Europe through Central Asia and has become a particularly popular trade route in recent years.

Kazakhstan has essentially become a key logistics hub in 2024, handling record-breaking cargo volumes along the TITR, which rose by 63% in the first 11 months of 2024, reaching 4.1 million tons.

Through increased investment in rail infrastructure and digital logistics platforms, TITR has become an increasingly reliable alternative to existing routes. Specifically, in early 2024, the European Union and Central Asian investors committed €10 billion to support in the sustainable development of the TITR. The objective is to transform the corridor into a cutting-edge, multimodal, and efficient route connecting Europe and Central Asia within 15 days.

Investment Incentives

Since its independence from the Soviet Union in 1991, Kazakhstan has been working to improve its investment climate through reforms, streamlined procedures, and competitive tax policies. The reforms are based on the promise to establish a “Just Kazakhstan,” a country that benefits all citizens. Politically, the country reduced the powers of the President and enhanced the powers of the elected Parliament, thus ensuring political stability, which also benefits foreign investors. Specifically in the investment sphere, the National Digital Investment Platform, launched in 2024, simplified investment processes and reduced administrative burdens.

Additionally, the Kazakh government has introduced several incentives to attract foreign direct investment, such as tax holidays that offer corporate income tax exemptions for 10 years in priority sectors. Furthermore, companies that operate within Special Economic Zones (SEZs) benefit from tax-free operations on corporate income, land, and property for up to 25 years. Investors can also receive up to 30% capital reimbursements on their investments.

The Central Asian country has also introduced mechanisms for investment agreements that offer stability in tax legislation for 10 years upon conclusion. To facilitate long-term investment, investment agreements secure a 10-year freeze on major tax rates and customs duties, which aim to provide a stable and predictable business environment.

Kazakhstan also engages with foreign investors through government-backed platforms such as the President’s Foreign Investors Council, which provided an opportunity to voice suggestions and proposals on investment-related issues in the country.

In addition, the country hosts the Astana International Forum (AIF), which, in 2025, will take place on May 29-30. Building on the inaugural edition in 2023, the 2025 AIF will gather leaders from around the world to exchange perspectives on the most critical issues of the day. One of the pillars specifically focuses on the economy and finance, enabling participants to discuss global economic issues as well as those directly relevant to Kazakhstan. With more than 5,000 international attendees and over 80 heads of state, ministers, CEOs, and other senior leaders, it presents an opportunity to address issues that matter to foreign investors.

Outlook for 2025

Ultimately, Kazakhstan’s economic diversification is supported by sound policies, which indicate that the market has matured significantly over more than 30 years since its independence. Kazakhstan’s competitive tax regime, strategic infrastructure investments, and expanding technological ecosystem make it an interesting option for investors, an option that should be considered in 2025 in the context of growing competition among global players.

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What Are the Benefits of Using Employee Monitoring Software on Mac Devices for Remote Teams?

December 23, 2024

For businesses relying on Mac devices, it becomes crucial to ensure productivity, maintain transparency, and foster accountability. It is better to be done for effective workforce management. This is where employee monitoring software for mac is applicable and effective. This article highlights how employee monitoring software on Mac devices boosts remote team productivity, security, and alignment with company goals.

The Importance of Employee Monitoring for Remote Teams

The shift to remote work has changed the way businesses operate, ensuring greater flexibility and access to faster-developing talent. However, it becomes challenging to manage teams effectively. Without the traditional office environment, it can be rather difficult to support visibility into employees’ activities, monitor progress, and guarantee coherent productivity. This is where employee monitoring software plays a crucial role, especially for remote teams.

Lack of communication is a critical aspect in business advancement. Remote work can result in misunderstandings or delays due to a lack of immediate interaction. Monitoring software can track project updates and deliverables, helping team leaders spot bottlenecks and address them proactively. This level of oversight fosters a smoother workflow and ensures all team members are aligned with project goals.

Along with monitoring the workflow of remote teams, businesses strive to safeguard the company’s confidential data. Remote work often involves accessing corporate systems from various locations, which increases the risk of data breaches or misuse. Employee monitoring for mac users prevents the data leakage and misuse due to improved security-grade.

In short, employee monitoring is not about micromanagement but about empowering remote teams to perform at their best. By offering visibility, fostering accountability, and ensuring security, it becomes a cornerstone of successful remote workforce management. For businesses relying on Mac devices, choosing software optimized for macOS ensures an even smoother integration into daily operations.

Key Benefits of Using Employee Monitoring Software on Mac Devices

Remote employee monitoring brings many benefits. There are distinctive features among them like enhanced productivity, data security, improved accountability, custom features for macOs, and better time management.

Monitoring software provides detailed records into how employees spend their time. Features like activity tracking and application usage reports help identify areas where time is wasted and encourage more focused work. For Mac users, these tools often come with intuitive interfaces that agree on the macOS ecosystem, making them easy to use.

By installing employee monitoring software, employee monitoring software on Mac devices offers robust security features such as file access tracking and screen monitoring. These capabilities act proactively and prevent data breaches and ensure that company information remains secure, even when accessed from remote locations.

Remote work can sometimes lead to a lack of transparency in task completion. Monitoring software addresses this by providing real-time updates on project progress and individual contributions. Managers can use this data to encourage top performers, define areas for improvement, and ensure that all team members remain accountable.

By offering detailed records with insights into employee performance, these tools enable managers to make informed decisions about resource allocation and workload distribution. For remote teams using Macs, this ensures that work is evenly distributed and that employees feel neither burned out nor underestimated.

By leveraging employee monitoring for remote teams, business leaders can not only streamline their operations but also create a more secure and productive environment for their remote teams. Mac users, in particular, can enjoy the advantages of tools that are specifically designed to complement their devices, ensuring smooth and efficient workforce management.

Summing Up

Employee monitoring software for Mac devices offers many benefits. It boosts productivity, enhances security, and improves accountability. Seamless integration with macOS ensures a smooth user experience. Features tailored for Mac users make managing remote teams easier and more effective. By adopting the right software, businesses can streamline operations and support their teams.

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Trump’s Game, China’s Move

December 23, 2024

By Dan Steinbock

The Trump White House is likely to ignite another round of inflation in new trade and tech wars. And that could drive US-China ties to the edge.

Who do I call when I want to talk to Europe? Kissinger once quipped highlighting the internal divides of the old continent. Today, he’d have a similar problem calling America.

In recent weeks, President Biden has yielded spotlight to Trump who has talked with foreign leaders like President Macron and Ukraine’s Zelensky, while commenting on Syrian turmoil before Biden. After Trump’s meetings with Canadian PM Justin Trudeau and Mexico’s president, Claudia Sheinbaum, trade and immigration policy are already out of Biden’s hands.

Since 2021 Biden has missed the opportunity to reset Trump’s policies. Now he could have used the transition period to warn Americans of the impending Trump’s revolution, whick risks disrupting domestic politics and US-China ties.

Trump’s triple inflation risks

If the 2021-23 inflation surge in America killed Biden’s second term by instigating widespread voter frustration, Trump’s economic agenda is likely to pose a triple threat to U.S. price stability.

The expected broad tax cuts will compound the already-huge federal deficits and debt, thereby exacerbating inflation. The possible effort to reduce the independence of the Federal Reserve would further foster inflation.

The second likely source of inflation would be the Trump’s pledge to initiate the “massive” deportation process, alongside other restrictive immigration policies. Not only would that effort divide Americans, reinforce xenophobia and white nationalism, it would likely disrupt U.S. labor markets, which rely on foreign-born workers, particularly in construction, agriculture and hospitality.

Additionally, such policies would encourage another ugly wave of anti-Asian sentiment that America witnessed in the Trump era and Biden’s protectionism has continued to inflame. It would undermine Chinese immigrant talent in science, technology, engineering, and mathematics (STEM). Darkly reminiscent of the Chinese Exclusion Act of 1882, America First translates to deporting the Chinese first. The Trump White House needs to scapegoat an “enemy” for its policy failures.

Third, Trump seeks to integrate the barely-regulated cryptocurrencies into America’s financial and fiscal systems thus opening the henhouse to crypto-foxes. It is a self-interested policy of the Trump oligarchs. The unregulated crypto-sphere, if fully executed, could cause high volatility in the financial markets. By potentially facilitating illicit activities such as money laundering, dark financing and diminishing the Fed’s influence over the economy, it could disrupt the dollar hegemony in the world economy.

Hence, too, the president-elect’s recent threat of 100% tariff on BRICS countries if they pursue creating new currency. In reality, the 34-country bloc is more interested in trading with their own local currencies than a bloc-wide currency. But Trump’s economic coercion is a taste of things to come.

Trade and technology wars

Since American hegemony can no longer rely on US dominance in the increasingly multipolar world economy, Washington relies increasingly on trade wars, sanctions and geopolitics to retain that supremacy.

If the triple inflation threat associated with the Trump White House will materialize, the Fed will slow its rate cuts or return to tightening. That will push up the dollar, which could destabilize international currencies, including the Chinese yuan. When trade tensions take off, economic uncertainty and market volatility will increase worldwide, including Chinese stock market. As investors’ risk appetite decreases, markets face downward pressures.

The Trump administration will exploit sanctions to decouple bilateral high-tech ties with China, especially by targeting semiconductors, artificial intelligence, quantum technology, possibly advanced manufacturing and biotech. Such measures increase costs in high-tech over time but won’t immediately affect daily living costs in the US.

Hence the attractiveness of such measures to Trump’s trade authorities, including the new trade representative Jamieson Greer, a protégé of ex-trade czar Robert Lighthizer. Greer used to represent US Steel in a lawsuit against China. Rewarded for his loyalty in the Capitol attack four years ago, the Sinophobic Peter Navarro will be Trump’s new senior counselor for trade and manufacturing.

Although the tough-and-rough Lighthizer managed to sell tariffs to Wall Street during the Trump’s first administration, he has now been played out. Treasury Secretary pick Scott Bessent, Commerce Secretary selection Howard Lutnick and Kevin Hassett, the new head of the National Economic Council, are all seen as business-friendly establishment figures. But each supports tariff and tech wars as well.

Unlike Lighthizer who saw tariffs as across-the-board duties to resolve America’s chronic trade deficits, the Wall Streeters are more likely to use tariffs “strategically” on certain products and as a cudgel to coerce other nations to accede to Trump’s demands.

China’s counter-measures

As demonstrated by the just concluded Central Economic Work Conference, China has been preparing for Trump’s trade wars. Among priorities for economic policy in 2025, policymakers emphasize the need to maintain stable growth, employment and commodity prices, through steps like higher deficit-to-GDP ratios, rate cuts and the issuance of ultra-long-term special treasury bonds.

During the first Trump administration, China was the primary tariff target. Now Trump says he will enact a 25% tariff on all imports from Canada and Mexico on his first day in office, and raise tariffs on goods from China by 10%. He has advocated 60-100% tariffs on imports from China and 10-20% tariffs on imports from all other countries, including allies. The “spread effect” could dilute some of the adverse impact on China. Moreover, like seven years ago, US importers have been busy trying to frontload their China purchases to reduce the impact of the impending tariffs. The proposed tariff effect is thus more likely to materialize in 2025-26.

Second, Chinese economy has changed. In 2017, it was more reliant on US as an export destination. For two decades, China was the top exporter of goods into the US and even in 2022 bilateral trade was still at a record high. Now Mexico has overtaken China’s role. Today, the US attracts less than 15% of Chinese exports, whereas ASEAN and the EU account over 16% and less than 15%, respectively. The EU will seek to emulate the US tariffs, but prefers targeted rather than across-the-board tariffs.

Third, China was more dependent on exports in 2017. Today, China is world-class science leader and benefits from more diversified innovation. I am currently touring in Guangdong’s Greater Bay Area. In the “Chinese Silicon Valley,” research and development (R&D) as of GDP is over 2.4%; higher than in France. In Shenzhen, it is over 6.5%; more than in any country.

True, China is still developing manufacturing processes for advanced semiconductors; a key target of US export controls. But now it is leading in electric vehicles, automotive software and lithium battery technology. Moreover, China’s LNG shipbuilding and high-speed rail industries are on track to hit targets. It produces the world’s most efficient and lowest-cost solar panels, along with innovative drugs.

Hardball or dialogue

Recently, the Politburo, China’s top decision-making body, opted to respond more actively to economic downturns, boost demand and stabilize the housing market. Fiscal easing is augmented by “moderately loose” monetary policy next year. The decision to foster “unconventional” counter-cyclical adjustments is the greatest policy shift since 2008.

However, China too can play the tit-for-tat trade games, even if reluctantly. On Dec. 2, Washington added more than 100 Chinese companies to a restricted trade list and banned the sale to China of some of the fastest semiconductors and the equipment to make them. China responded by banning US exports of rare minerals – gallium, germanium, and antimony – and other items.

It was the first time China included a broad ban on so-called transshipment in a government regulation on exports. US sources estimate the likely total cost from disruptions to supplies of gallium and germanium alone at over $3 billion. Moreover, Beijing has begun an antimonopoly investigation into Nvidia, the US giant dominating the world market for the advanced chips needed for AI.

Does this mean China has opted for those geopolitical divides in the global economy that Trump and Biden have supported in the past seven years? No. It is a signal to the incoming Trump administration that unilateralism has no future in a multipolar global economy. It is still a move to begin dialogue – unless the Trump White House chooses otherwise.

The original version was released by China-US Focus on December 20, 2024

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About the Author

Dr. Dan Steinbock is the founder of Difference Group and has served at the India, China and America Institute (US), Shanghai Institute for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net/

Why the Finance Team is Crucial When Scaling a Business

December 22, 2024

By Ian Miell

The cultural shift associated with scaling from a bespoke model to a product-based approach requires strong alignment between all departments, and the finance team often acts as the linchpin.

Many companies struggle with scaling because growth is not merely about doing more of what already works. Fundamental changes in how the business operates are required. Scaling exposes weaknesses in systems, processes, and organisational structures that may have been adequate at smaller sizes but cannot handle the complexities of expansion. Companies often underestimate these challenges.

Financial teams are important

Transitioning from a bespoke service model to a product-based approach presents numerous challenges for companies, as it involves a fundamental shift in their business operations and mindset. One of the primary difficulties lies in redefining the company’s offering. Bespoke services are inherently tailored to individual client needs, often relying on close relationships and customisation. In contrast, a product-based approach requires standardisation, which can alienate existing customers who value the personalised aspect of the bespoke model. Striking the right balance between standardisation and flexibility is a complex process, as companies must ensure their product remains broadly appealing while preserving key elements of value that clients expect.

The key aspect of transitioning from a bespoke service model to a product-based approach is the fundament modifications necessary to the business’s financial dynamics, requiring robust planning, strategic decision-making, and precise execution. The finance department effectively becomes the heart of the transformation, enabling the transition by ensuring financial stability, providing strategic insights, and aligning resources with the company’s growth ambitions.

To successfully transform to a product solution model, a complete shift of the financial flow is required. The challenge is to bring about this shift without undermining revenue, sales, and existing customer relationships.

Scale-up transformation strategies

When a company decides to scale, it often faces a critical strategic choice: transform what it already has or grow something entirely new. These two approaches, while distinct, share a common goal of achieving sustainable growth but require vastly different mindsets, resources, and execution strategies; each has its own financial implications.

Grow Something New

Growing something new involves creating and scaling a new product line, business unit, or revenue stream that complements or extends the existing business. This strategy is often pursued when the company’s current offerings have limited scalability or when new opportunities arise that promise higher growth potential. Proceeding with this approach requires a focus on innovation and experimentation. The company typically starts by identifying gaps in the market, emerging customer needs, or areas where it has a competitive advantage. From there, resources are allocated to research, development, and prototyping to bring the new idea to life.

The key to success when growing something new lies in balancing the exploratory nature of the venture with disciplined execution. Companies often establish dedicated teams or business units to drive the initiative, freeing them from the constraints of existing operations. This allows for agility and focus while minimising disruption to the core business. As the new offering gains traction, the company invests in scaling it further, whether through increased production, expanded marketing efforts, or building new distribution channels.

Financially, this strategy requires a significant shift in thinking.

Transform What You Have

Transforming what you have involves scaling up the existing business model, processes, and offerings to handle greater demand or market penetration. Companies taking this path focus on optimising their current operations and leveraging existing strengths. The process often begins with a thorough analysis of what is working well and what is not. This evaluation identifies bottlenecks, inefficiencies, and limitations in current systems, such as outdated technology, inadequate workflows, or underprepared teams. Once these weaknesses are addressed, the company invests in upgrading its infrastructure, automating processes, and refining its value proposition to ensure it can meet increased demand without sacrificing quality or efficiency.

There will likely be significant investment in employee training, technology upgrades, and customer support to ensure the business can handle larger volumes without alienating existing customers or compromising service levels – this can present financial challenges. The company may experience a temporary decrease in revenue or even lose some old clients.

During the transition, the company may need to operate in two modes simultaneously – minimum servicing of existing bespoke contracts while developing the standardised product. This can strain resources and requires careful financial management.

Preparing for transformation

Scaling your company requires an appropriate shift in mindset and this starts with finance.

It is important to engage your finance team early, making them part of the transformation process from the start. They need to understand the long-term benefits of the new approach.

You will need to rethink your financial metrics to reflect the (fingers crossed) success of the product-based approach. You might look at Customer Lifetime Value (CLV), churn rate, or ratio of customisation revenue to product revenue.

It is also advisable to revisit your commission structures; you want to be rewarding sales of a standardised product rather than customisations.

Training is another crucial aspect. You may need to offer help to sales teams, teaching them how to sell a product rather than a service, or your developers may need some assistance shifting their thinking from custom solutions to scalable feature.

By aligning your financial structure with your new product-based mindset, you create an organisational structure, culture and environment where transformation can take root and flourish. The finance department is more than just a support function during a company’s transition from a bespoke model to a product-based model. It is the strategic driver that enables the company to navigate financial complexities, allocate resources effectively, and achieve sustainable growth.

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About the Author

Ian Miell is a partner at Container Solutions, and has been helping companies, across industries, move to cloud native ways of working for over ten years. Container Solutions develops a strategy, a clear plan and step by step implementation helping companies achieve a smooth digital transformation.

Redefining What We Think We Know About Providing and Receiving Feedback

December 22, 2024

By Becky Westwood

We are all used to the concept of individual feedback in the work environment. It is intended to be a positive process which adds value to each member of staff and to the organisation overall. However, the reality can be very different. In my new book, ‘Can I Offer You Something?’, I examine a number of myths, those ideas about feedback at work that are simply accepted as ‘the way thing are done around here’ and consider alternatives in order that our relationship with feedback can become more purposeful and positive.

Is there a one size fits all approach?

In many organisations a model for feedback has been introduced and there is no appetite for changing them. In some cases people will rely on their own experiences with feedback and follow a pattern of what they see as always having worked for them. The belief that there is a universal formula can result in staff members having too little or too much feedback. It may be presented in a way that’s hard to process, or exchanged in a way that isn’t authentic.

Of course, if there was a universal formula to giving and receiving feedback, all businesses would encourage their employees to use feedback in the same way. However, the reality is that individual experience feedback very differently. The more you can understand about your own feedback preferences and explain them to your colleagues, the more benefits you will gain from engaging in feedback.

Is feedback being ‘done to you’

Have you experienced a moment when you felt that feedback was being ‘done to you’? When it feels like a one-way street recipients are very likely to disengage from what is being said. They may even disengage from the person voicing the feedback. If, as the provider of feedback, you are feeling any anxiety about the process, you may find yourself ‘getting it over with’ as quickly as you can. Your poor recipient may experience this as having feedback dumped on them. As a result they’ll be less inclined to ask you to share your feedback and miss out on the value of your perspective.

Feedback should be a conversation, Information/ideas/emotions should go back and forth between provider and recipient. People are much more willing to stay present and engaged with the conversation if the feedback is offered empathically and shared in ways that suit both parties. This puts the human connection in the centre of the exchange. My research showed that 82% of people would like feedback to be more relational.

Are clarifying questions seen as outside the process?

For feedback to work well both parties need to understand one another. However, often people feel that asking clarifying questions will be seen as defensive, or an attempt to justify their actions. If these necessary questions aren’t asked then people will fill in the gaps themselves, decide that they know what is meant and use their time and energy in a futile way to action the ‘wrong thing’.

Many people, when they are providing feedback and feeling anxious, unintentionally omit space for asking questions. This will likely lead to having to repeat the whole conversation again to clear up any uncertainty that the recipient feels or misunderstandings that have arisen.

Asking questions is important! They demonstrate curiosity, help to clarify information and also help you to build your self-awareness and also your awareness of others. And they limit recipients making up what they think you mean.

Is feedback all about creating action?

I once worked with someone who was told to both stop and start the same thing by two different people. Unsurprisingly this led to ‘analysis paralysis’. When feedback isn’t clear, recipients can get into a frenzy trying to action everything or focus on things that really aren’t a priority. This can result in missed deadlines, missed opportunities a lot of frustration.

Good feedback is really about inspiring choice. What you offer is your perspectives on something. The recipient can choose what to do with it. They may take it on board as a moment of recognition; learn, act or do nothing at all, without being penalised.

If what you’re offering will lead to an unhelpful consequence if they don’t act, then communicate this clearly. What you’re actually doing here is not feedback. What you are doing is providing a direction. Everyone needs to understand this and be clear on the next steps.

Is feedback mainly criticism?

If you see criticism as a key part of feedback this can lead to increased feelings of anxiety as people start to perceive feedback as a threat. People will be wary and on their guard. This may cause them to feel judged personally, rather than being a reflection of what they have or haven’t done.

In truth negative and positive feedback can be equally uncomfortable, motivating, and challenging to both receive and to give.

But regardless of the label attached to feedback it is important that it works for the person on the receiving end. To get over the idea that feedback must be critical what’s important is to the consider why you want to offer or receive feedback. What is the purpose or desired outcome? Then use this to focus your efforts. From whom do you wish to seek feedback? Or, what will be the best way to offer it to the human being sitting with you?

Conclusion

If you want to have a beneficial relationship with feedback it is time to take a step back and ask yourself, how do you really know what you know about the feedback process? By doing this you can get curious about the influence of the unhelpful embed beliefs we have about feedback. You’ll able to access their impact on your behaviour and change them for a more nuanced understanding that will make feedback more purposeful, relational and valuable.

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About the Author

Becky Westwood is an Organisational Psychologist, and Chief Experience Officer of Monkey Puzzle Training and Consultancy. Becky is author of ‘Can I Offer You Something? Expert Ways to Unpack the Horrors of Organisational Feedback’.

How International Aid Fails and Succeeds — Why Some Programmes Work and Others Don’t

December 22, 2024

By Zhenglin (Alex) Li

International aid refers to assistance provided by one or multiple countries or organisations to another country, often with no expectation of direct repayment. It can be broadly categorised into short-term relief aid, aimed at addressing emergencies, and long-term development aid, focused on building infrastructure and capabilities. In some cases, donors impose conditions that require recipients to spend the aid money on products or services from the donor country, a practice known as tied aid. Generally, relief aid tends to have a more positive impact than development aid, while tied aid often diminishes the benefits of the assistance.

The Case for Relief Aid

Relief aid has proven to be essential in times of crises. Its effectiveness lies in its clear purpose: addressing immediate needs during emergencies. For example, relief aid is often directed towards providing equipment and resources to mitigate the impact of natural disasters, making it harder for governments to misuse funds. Since the primary goal is saving lives, governments are less likely to squander the money, as any mismanagement could result in devastating consequences for their citizens.

Relief aid also tends to produce benefits that outweigh its drawbacks, as it prioritises human lives. A notable example is the aid India provided to Nepal following the devastating 2015 earthquake, which registered a magnitude of 7.8. The disaster claimed approximately 9,000 lives and caused massive financial losses. While Nepal’s government was eager to send rescue teams, financial constraints limited its ability to respond effectively. India’s aid played a crucial role by funding temporary shelters, distributing food and other necessities, and financing rescue equipment like helicopters. Thousands of lives were saved, and the aid also facilitated rebuilding efforts in the aftermath of the destruction.

The Challenges of Development Aid

In contrast, the effectiveness of development aid is often limited. The goal of development aid is to improve infrastructure, such as transportation networks, or to enhance human capital through education and training. Ideally, these improvements would attract foreign direct investment (FDI) and foster entrepreneurship, leading to economic growth and poverty reduction. However, for development aid to succeed, certain conditions must be met, such as a stable government and a lawful market system.

Without stability and rule of law, investment is discouraged, as the future becomes uncertain, and trained workers may be unable to utilise their skills due to war or political persecution. For instance, during the era of the Republic of Zaire (now the Democratic Republic of Congo), the country was plagued by political corruption and economic instability. Dictatorship led to widespread violence, with citizens frequently murdered and companies forcibly transferred to the dictator’s family. Despite receiving significant aid from the United States and other high-income countries, much of the money was diverted to military spending or lost to corruption. Training programmes provided by the United Nations were also ineffective, as skilled workers were often subjected to forced labour, enriching the dictator’s wealth through diamond mining. By the end of this period, Congo was one of the least developed countries in the world, with fewer than 100 doctors, despite the substantial development aid it had received. Even after the dictatorship ended, the nation experienced two civil wars and ongoing conflict, leaving it with one of the poorest economies, worst infrastructures, and least skilled workforces globally. To this day, Congo relies heavily on exporting primary products, with limited foreign investment or entrepreneurial growth.

The Limitations of Development Aid in Stable Economies

Even in countries with stable and lawful systems, development aid does not always yield the best results. While it can assist with economic growth and infrastructure improvement, it often lacks the advantages of promoting international trade. One reason is that aid can foster complacency, as individuals may view it as a benefit that does not require effort, and firms may become less competitive, knowing losses or inefficiencies can be offset by external funding. This reliance on aid can make domestic industries dependent, leaving them vulnerable in international markets once the aid is withdrawn.

A clear example is the long-term development aid provided by the United States to Egypt. Due to the country’s weak domestic industry, Egypt had to either cooperate extensively with the donor, reducing its economic independence, or implement protectionist policies. In contrast, promoting international trade encourages firms to compete, innovate, and reduce costs. This is one reason why the Asian Tigers and China achieved significant growth—by attracting FDI, they enhanced domestic competition and efficiency.

The Harmful Effects of Tied Aid

A specific form of aid—tied aid—can be particularly harmful to recipient countries, as it often imposes economic or political pressures. Tied aid typically requires recipients to import goods or services from the donor, increasing economic dependency, or to align politically with the donor. A notable example is the Pergau Dam scandal in the 1990s. The United Kingdom provided aid to Malaysia to fund the construction of the Pergau Dam, but it required Malaysia to purchase equipment from British companies. Moreover, Malaysia agreed to buy British arms under political pressure, strengthening bilateral relations and aligning with the political agendas of British Prime Ministers Margaret Thatcher and John Major. While the dam provided short-term benefits, the arrangement was widely criticised for increasing Malaysia’s economic and political dependence on the UK.

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About the Author

Zhenglin (Alex) Li is an independent researcher based in Yinghua Academy of Tianjin. His research area focuses on the financial market, pension reforms, the Chinese economy and trade liberalisation. He was one of the delegates of China in the United Nations Youth Training Program in 2023.

Domesticating the International: Reflections on a Hypothetical Philippine Indigenization of IR for the World

December 22, 2024

By John Louis B. Benito, LPT, MA

The modern Filipino, through his or her utilization of advance technology, are more aware of what is happening beyond the Philippine border compared to generations before. Events such as their country’s conflict with China in the West Philippine Sea1 as well as every armed conflict across the world that caught OFWs in the middle made them pay attention to the international. Whether the Filipino we are referring to is working for the state or just an ordinary citizen, such awareness would mean that s/he renders opinions or ideas about the international phenomenon in which his or her collective is involved. The Philippines, in which they are a part of, then becomes an active member of the international community partially through such actions. This would also be the case even for those events that no Filipino would be involve so long as they have garnered an information about it. With all of these, the country essentially participates in the complexities of international relations.

Scholars of International Relations (IR) may notice this prevailing trend or social reality and render a high regard for it or not. The reason may depend on their academic niche, theoretical leanings, or a research puzzle they may discover in relation. If there is indeed a regard, then an adherence towards critical posturing can also happen, perhaps an indigenization attempt. Such move is logical given that the Philippines is not that much highlighted in IR. Various questions will then follow. How can something and arguably as western as IR make sense to a Filipino and the Philippines? Shall we see Filipino ideas and actions in terms of the international through the lenses of existing theories of IR and other related school of thoughts or would a new paradigm help? Given these circumstances, for what and how then?

A lot of questions to digest I suppose. But the practice of IR’s indigenization and its foci is nothing new in the practical world and the academe. Indigenization can be related to decolonization. Approaches related to decolonization have already existed in different parts of the world, particularly those states that have experienced colonialism and imperialism. They have tried to emphasize their own language and ways to advance their own brand of intellect and philosophies in understanding the international since they were sidelined for the longest time by their former colonial masters. Therefore, points about emancipation and justice are familiar tones to hear for this one.

The Philippines can be a great subject for decolonization given its history. For the Filipinos essentially, considering that they are fond of owning something from the foreign like Roman Catholicism2, the indigenization of international relations discussions and events seems to already exist in their own means and ways. But in the academic institutions that are concerned to them as a national collective, the status quo is hanging in the balance. The phrase “hanging in the balance” is generous, as my observation renders me the conclusion that the concern for IR’s indigenization in the Philippines is almost non-existent. This role from the academe is crucial, as there would be no formally recognizable Philippine “brand” of IR without their analyses and rationalizations.

Nevertheless, for the sake of intellectual pursuit, we can still infer that an indigenization of IR in the Philippines is still worthy to be pondered upon. Considering myself as a continuing student of the Social Sciences, the arduous attempts of indigenization in general of various Filipino scholars is a topic well-covered in our undergraduate classes. Although I am not a specialist or expert in the likes of Pantayong Pananaw3 and Sikolohiyang Pilipino4, I can still remember the passion of my former professors in honing our thinking with their frameworks or at least make us generally knowledgeable about them. These of course have their vocal supporters and critics also within the academe except for International Studies. Assuming that one from IR would take interest in making this as their niche or to rattle the discipline, there are three general questions to possibly reflect on: (1) What would the novel aspects of a possible theory be? (2) Who would want to pursue such endeavor? and (3) Will it provide new explanations and approaches for Philippine foreign policy?

What would the novel aspects of the possible theory be?

An introduction of a paradigm shift or even just a simple new angle in a discipline or field generally requires its ability to analyze, explain, and even recommend. If the process of IR’s indigenization in the Philippines will be successful, it must have a theoretical foundation. But what would be its novel aspects and the variables that it will consider? There is no answer for this one yet. However, the journal article of Dreisbach and Angeles back in 20195 emphasized a working framework to create a theoretical basis. They illustrated an indigenization from within and without to spearhead the process. This would also be the only attempt of Filipino IR scholars in indigenization that I know, and it only attempted to build the track and not to start the race.

Despite no further effort existing so far, the working framework can be a good commencement to at least hypothesize what are the variables considered for a future theory. The process of indigenization requires an emphasis on the culture, behavior, philosophies, and language of the Filipino people. With appropriate methodologies, anyone who would make this an academic endeavor may find something novel or unique from the Philippines and their connection to IR. That is, if an IR scholar would want to.

Who would want to pursue such endeavor?

Every academic in IR, just like in any discipline of the Social Sciences, have their own biases tamed by facts and methods of objectivity. They have their own preferences defended by their own justifications and empirical evidence. In the case of the possible indigenization of IR in the Philippines, there is no significant number of scholars showing interest. I can only personally speculate as to why. Maybe they already find the existing theories sufficient to explain the Philippines in the international system. Maybe they just don’t find it interesting at all.

Even so, we can still create an ideal candidate with qualifications and pinpoint the will to accomplish indigenization. The nationality and citizenship of the scholar matter. It only makes sense since no one can arguably provide better understanding about the Philippines and what they think about the foreign more than a Filipino. Regarding the will to accomplish on the other hand, we may consider the extremes to locate interest. The academe can be shaken by the material world it analyzes. So, we can say that the initiative may start from the unique constructs of a social collective about international relations within the country that scholars might notice. Emphasis on the word “unique” for this one is important, as it should be a definite outlier.

Still the question remains. What is the reason behind as to why no IR scholar initiates this? If we are to observe the nuances of their focus, they are more bound to consider what is happening externally or on the systemic level. Not that they disregard domestic phenomena, but these mostly falls on the realm of anthropology, sociology, as well as psychology and history. For IR scholars, the use of the domestic lies on its relations with foreign affairs. Probably it would take an IR academic heavily devoted to other disciplines and fields of the Social Sciences to deeply theorize and build the foundations of the supposed indigenization. Someone who can also see the practical benefits of such move, like in policy making.

Will it provide new explanations and approaches for Philippine foreign policy?

International Relations has its own practical benefits as its foci can be dissected to International Security, International Political Economy, International Organizations, International Law, and International Development. Various international and state actors sought an IR specialist to create and recommend policies for their own strategic functions. For the Philippines, IR is an essential for its foreign policy. Therefore, in relation to the indigenization we are thinking about, the question of its ability to later provide recommendations and explanations to current affairs related to the Philippines would be vital.

Of course, a theory must first be settled. This is the reason why I think it will be difficult if this endeavor would have any policy value. But one thing is for sure. For it to be a worthy one, it must be something beneficial for how this country plan its foreign relations.

The Bigger Question and Picture

Aside from the three questions we just pondered, an encompassing question takes precedence over them: is indigenization something that we should pursue? It is for academics, particularly Filipino ones, to decide if the answer would be yes or no to this normative question. Moreover, this is a question not only for the Philippines but for various states as well, particularly those that do not yield enough power nor influence. Zooming out then from our focus, it is important to ask whether it is valuable to have an indigenized theories about international affairs coming from scholars across the world. I understand the call for recognition for those that are not recognized. The lack of recognition for the perspectives of the minority is exactly why IR is branded as something that is only relevant to the western hemisphere, especially by those who adhere to postcolonial approaches. There could be a noble and intellectual purpose on learning other existing nuanced variables for the most pressing questions and problems in the contemporary world like poverty, climate change, migration, security, etc.

On the other hand, maybe indigenized theories or attempts for such are no longer needed, for the experiences of the state and non-state actors they pertain to are already considered, categorized, or discarded in certain typologies and assumptions of other existing theories. An example of this would be the neorealist’s point of view about war or security. As it focuses on the systemic level, whatever domestic occurrences within states are to be reserved no emphasis. This may sound as a snubbing point, but that is just an expected consequence of necessary discriminations.

Another aspect to think about would be the citizens themselves and the state. Is there really a unique understanding from the ground or a need for one? Is there a distorted perspective to the point that they need an enlightening way of understanding international relations imbued with emancipation and justice? Or are they fine with the existing languages of IR and there is no need to rock the boat?

For the sake of openness, I render an agnostic stance for this one. This article’s purpose is just to be an invitation for other academics to consider thinking about the idea anyway. The Philippines here is only a case, so the invitation is reserved for scholars of all nationalities and citizenships. In the end, whether this may result to a debate or a floundering, I have this belief that every single person in this world should be at least introduced to IR. This is an agenda worthy to be pursue not only in the Philippines, but also on other states that do not play a major role in the system. A small residence is still a residence that should matter and count in the global village. The people within should be familiar with the storylines despite the possibility that they are not the main characters. Whether the academe in the Philippines and other states pursue indigenization or not, what I think can generally be agreed upon is the importance that international affairs should be studied by everyone, and at least allow an individual to create a guided analysis about it. Only IR can provide that guided analysis.

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About the Author

John Louis B. Benito, LPT, MA is a lecturer at the Department of International Studies of De La Salle University in Manila, Philippines. He earned his MA degree in International Studies, major in European Studies from the same university. His research interests and publications include International Migration, Critical Security, and Sustainable Development. He aims to contribute knowledge and directions in the academe and policy making circles about international relations well into the future.

References

Cornelio, Jayeel S. “Popular Religion and the Turn to Everyday Authenticity: Reflections on the Contemporary Study of Philippine Catholicism.” Philippine Studies: Historical and Ethnographic Viewpoints 62, no. 3-4 (2014): 471–500. https://doi.org/10.1353/phs.2014.0024.
Dreisbach, Jeconiah Louis, and Roche Christine C Angeles. “‘HOME-GROWNING’ INTERNATIONAL RELATIONS in the PHILIPPINES: A PRE-THEORISATION.” Journal of Southeast Asian Studies 24, no. 2 (December 31, 2019): 91–108. https://doi.org/10.22452/jati.vol24no2.6.
Morales, Rhisan Mae E. “Into China’s Rough Seas: Troubled Maritime Institutions in the West Philippine Sea – Implications for Philippine National Security.” Contemporary Chinese Political Economy and Strategic Relations: An International Journal 5, no. 1 (2019): 33–76.
Pe-Pua, Rogelia, and Elizabeth A. Protacio-Marcelino. “Sikolohiyang Pilipino (Filipino Psychology): A Legacy of Virgilio G. Enriquez.” Asian Journal of Social Psychology 3, no. 1 (April 2000): 49–71. https://doi.org/10.1111/1467-839x.00054.
Reyes, Portia L. “Fighting over a Nation: Theorizing a Filipino Historiography.” Postcolonial Studies 11, no. 3 (September 2008): 241–58. https://doi.org/10.1080/13688790802226645.

How Anti-GMO Disinformation Fuels Anti-Western Narratives and Threatens Food Security in Africa

December 22, 2024

By Gbemisola Adebowale

“There is hunger in the land.” This refrain has become alarmingly common as Africa’s food security crisis worsens. According to the UN, one in five Africans suffers from chronic hunger and has little or no access to food. Nigeria’s food security is at an overwhelmingly low rate, with over 30 million people projected to be food insecure in the coming year.

These depressing statistics reflect challenges such as climate change, conflict, economic stagnation, and antiquated agricultural practices. Despite these challenges, a promising solution—genetically modified organisms (GMOs)—is caught in a web of disinformation and mistrust.

While GMOs have the potential to transform agriculture by increasing crop resilience to pests and climate extremes, the spread of anti-GMO narratives has slowed their adoption. These narratives, often intertwined with anti-Western sentiment, portray GMOs as tools of neo-colonial exploitation. This disinformation erodes trust in biotechnology and jeopardises food security.

The Roots and Impact of Anti-GMO Disinformation

Disinformation about GMOs is not new. Narratives presenting genetically modified crops as poisonous and unnatural have persisted since the early days of maize and cowpea, as well as more recent breakthroughs like TELA maize. In Nigeria, social media platforms are saturated with allegations connecting GMOs to diseases like cancer—claims that lack scientific support. For example, during the 2024 rollout of TELA maize, a prominent politician openly criticised the technology as dangerous, increasing public distrust despite evidence to the contrary.

Beyond health issues, disinformation frequently portrays GMOs as an instrument for economic dominance. A popular argument is that GMO seeds are “terminator seeds,” incapable of reproduction, thereby indefinitely binding African farmers to the West. Although clearly incorrect, such narratives resonate on a continent with a history of exploitation and distrust of foreign interventions.

Past controversies, such as the Pfizer meningitis drug trials in Nigeria in the 1990s, have only reinforced this suspicion. The controversy involved allegations of informed consent violations and impacted public perceptions of foreign-led scientific interventions. Anti-GMO organisations capitalise on these historical frustrations, fuelling concerns that biotechnology represents a new frontier of neocolonial domination.

Anti-GMO Narratives as Anti-Western Messaging

The correlation between anti-GMO misinformation and anti-Western stance is undeniable. GMOs are often portrayed in Africa as a Western imposition designed to undermine local farming practices and agricultural autonomy. These storylines have taken centre stage on social media sites. Pro-Russian influencers, for example, frequently mix anti-GMO rhetoric with broader anti-Western themes, depicting GMOs as part of a Western plot to economically and culturally control Africa. Take, for example, a Kenyan pro-Russian account that claimed GMOs could be weaponised to alter gender and sexual identity—a claim without scientific backing. Similarly, notable Nigerian voices, including political and religious leaders, have utilised their platforms to spread fear about GMOs, using their influence to create echo chambers of disinformation.

These narratives are more than just digital tale-telling; they have real-world consequences. Public opposition to GMOs contributes to government hesitance in approving new biotechnologies. In Nigeria, the approval of genetically modified potatoes was delayed in 2024 following a public outcry fuelled by disinformation.

Missed Opportunities for Food Security

The cost of rejecting GMOs is significant, particularly for a continent already dealing with food insecurity. Genetically modified crops have shown major benefits in various parts of the world. In China, for example, Bt cotton has reduced pesticide use by up to 80% while raising farmers’ profit by 36%. Similarly, in Hawaii, genetically modified papaya saved the industry from devastation by the ringspot virus in the 1990s.

Nigeria has seen success with genetically modified cowpeas, known locally as beans. Developed to resist the destructive pod borer pest, the crop has increased yields while reducing dependency on chemical pesticides. Yet, despite these successes, disinformation continues to cast doubt on the safety and efficacy of GMOs, limiting their widespread adoption.

The implications for Africa’s food security are dire. With climate change intensifying droughts and limiting arable land, the need for resilient crop varieties is more urgent than ever. GMOs provide a pathway to address these challenges, but only if public trust in the technology is restored. This rebuilding of confidence is not just a goal but a necessity for the survival of African agriculture.

Turning the Tide: Solutions to Disinformation

Combating anti-GMO disinformation demands a multifaceted approach. First, governments and research institutions must invest in public awareness initiatives that debunk GMOs and dispel prevalent myths. This involves encouraging balanced reporting in the media to combat sensationalism and ensure the public receives factual information on GMOs. In addition, media literacy programs can assist people in distinguishing between credible and false information, allowing them to make more informed decisions.

Second, collaboration with trusted local influencers—religious leaders, traditional rulers, and community organisers—can bridge the communication gap between scientists and the public. By leveraging their credibility, these figures can counter anti-GMO narratives in a way that appeals to local audiences.

Third, increased transparency in the regulatory process for GMOs can build public trust. This includes clear communication about the rigorous safety assessments that GMOs go through before being approved, which can help dispel fears of health and environmental risks. Additionally, emphasising success stories from other countries can demonstrate the practical benefits of biotechnology.

Finally, collaborative partnerships between science-focused fact-checking organisations and social media platforms can be pivotal in addressing anti-GMO disinformation. By ensuring that debunked falsehoods receive as much visibility as the initial disinformation, these partnerships can help neutralise the impact of harmful narratives. This can be done by integrating real-time fact-checking mechanisms into platforms and creating algorithms that prioritise the dissemination of verified, science-based content to counteract misleading information effectively.

Nigeria’s food security concerns necessitate prompt and inventive answers, but disinformation about GMOs threatens to hamper the progress. Anti-GMO narratives weaken trust in biotechnology while also fuelling larger anti-Western sentiment by presenting GMOs as neocolonial control instruments.

Policymakers, scientists, and community leaders must take aggressive action to reverse this trend. Public education, innovative alliances, and transparent communication can combat disinformation and unlock GMOs’ promise to improve agriculture. The risks are significant, but so is the chance to ensure Nigeria’s food security in the future.

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About the Author

Gbemisola Adebowale

Gbemisola Adebowale is a legal practitioner and fact-checker specialising in combating disinformation and influencing public policy. She focusses on addressing information disorder within Nigeria’s intricate political environment. 

Pledging vs. Selling Shares: Making the Right Choice in Your Trading Journey

December 21, 2024

Navigating the dynamic world of stock trading often requires strategic financial decisions. Two common approaches for managing assets are pledging shares and selling them. Each method has advantages and drawbacks, and understanding their implications can help investors make informed decisions to optimise their trading strategies.

What Does Pledging Shares Mean?

Pledging shares involves using your shares as collateral to secure a loan. This practice allows individuals, companies, or promoters to retain ownership of their shares while accessing funds for purposes such as margin trading, meeting working capital requirements, or clearing existing debts. Unlike selling, pledging enables investors to leverage their holdings without liquidating assets.

How Does Pledging Work?

Shares are evaluated for their market value, and a percentage called a “haircut” is applied. After approval, the lender provides a loan based on the adjusted value of the pledged shares. For instance, if you pledge shares worth ₹10 lakhs, and the lender applies a 20% haircut, the collateral value is ₹8 lakhs. This safeguard protects lenders against market volatility.

Advantages of Pledging Shares

The following are some of the key advantages of pledging shares:

Access to Secured Loans: Borrowers can obtain lower interest rates than unsecured options.
Liquidity Without Selling: Investors can retain ownership of their shares and benefit from potential price appreciation and dividend payouts.
No Tax Implications: Pledging does not trigger tax liabilities as the shares are not sold.
Increased Trading Margins: Traders can enhance their trading capacity by unlocking funds in their holdings.

Disadvantages of Pledging Shares

The following are some of the key disadvantages of pledging shares:

Market Risks: A decline in share prices can reduce the collateral value, leading to additional margin requirements.
Default Consequences: If the borrower fails to repay, the lender may sell the pledged shares, impacting both the borrower and the market.
Reputation Risks for Promoters: Defaulting on pledged shares can negatively affect the company’s image and share prices.

Selling Shares: A Comparison

Selling shares involves liquidating assets to generate immediate funds. While this method avoids the risks of pledging, it results in losing ownership and potential future gains. Additionally, selling shares may attract capital gains tax and limit investors’ ability to capitalise on market upswings.

Key Considerations for Investors

Trading Goals: Pledging suits those seeking funds for trading without losing ownership, while selling is ideal for immediate liquidity.
Market Conditions: In bullish markets, pledging may offer better outcomes. However, in bearish conditions, selling might minimise risks.
Risk Tolerance: Understanding the risks of pledged shares, especially during market volatility, is crucial.

Conclusion

Both pledging and selling shares serve distinct financial purposes. While pledging offers the advantage of liquidity without forfeiting ownership, selling provides immediate cash flow. Investors can determine the most suitable approach by assessing individual goals, risk appetite, and market conditions. Leveraging a reliable trading app can enhance decision-making and trading success for seamless trading and efficient pledge management.

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How to Choose the Right Charity for Your Christmas Donations

December 21, 2024

The holiday season is a time for giving, reflection, and spreading joy. Many people celebrate this spirit by donating to charities, but with countless organisations vying for support, it can be overwhelming to decide where to give.

Choosing the right charity not only ensures your donation makes a meaningful impact but also aligns your values with a cause you deeply care about.

Why Your Choice of Charity Matters

Every dollar donated has the potential to create significant change. However, not all charities operate with the same level of transparency, efficiency, or focus. By carefully selecting a charity, you can ensure your contribution supports meaningful programs and reaches the people or causes that need it most.

Aligning your donation with causes like education, healthcare, or social justice allows you to contribute to a larger movement for equality and empowerment. Your choice reflects your values and the legacy of giving you want to leave.

Understanding Your Priorities

Before researching specific charities, take a moment to reflect on the issues that matter most to you.

Identifying Your Passion

Do you feel strongly about helping children in need, addressing climate change, or supporting social justice initiatives? Identifying your passion will narrow down your options and make your decision more personal and impactful.

Setting Donation Goals

Decide whether you want to make a one-time donation or establish a recurring contribution. You should also consider whether you prefer to support a local charity or an international organisation.

Researching Charities

Once you’ve identified your priorities, it’s time to research charities that align with your goals. This step ensures your donation goes to a trustworthy and effective organisation.

Check for Transparency and Accountability

Look for charities that openly share their financial records, annual reports, and impact assessments. Websites like GuideStar and Charity Navigator provide detailed ratings and reviews of non-profit organisations.

Focus on Impact

Examine how much of the charity’s revenue goes directly to programs versus administrative costs. High-impact charities often dedicate the majority of their funds to initiatives that deliver measurable results.

Read Testimonials and Stories

Hearing from beneficiaries or donors can provide insight into how a charity operates and the difference it’s making. Personal stories often reveal the human side of an organisation’s work.

Choosing a Cause

The holiday season is an opportunity to support causes that resonate with the spirit of giving. Here are some popular areas of focus to consider:

Supporting Social Justice

Social justice organisations work to address systemic inequalities in areas such as education, healthcare, housing, and civil rights. By donating to these groups, you can help promote equality and fairness in society.

Helping the Homeless

Shelters and organisations that provide housing and support for homeless individuals often experience increased demand during the holidays. Your donation can help provide warm meals, clothing, and shelter to those in need.

Promoting Environmental Sustainability

Many charities work tirelessly to combat climate change and protect natural resources. Supporting environmental causes is a way to invest in the future of the planet for generations to come.

Contributing to Global Health

Charities that focus on global health issues address problems such as malnutrition, access to clean water, and disease prevention. These efforts save lives and improve quality of life for vulnerable populations.

Making Your Donation Count

Once you’ve selected a charity, consider ways to maximise the impact of your donation.

Match Your Donation

Check if your employer offers a donation-matching program. This can double the impact of your contribution at no extra cost to you.

Donate Thoughtfully

If you’re giving a tangible gift, such as clothing or food, ensure it meets the specific needs of the charity. Financial donations are often the most versatile and impactful.

Share Your Experience

Encourage others to contribute by sharing your reasons for choosing a particular charity. Social media and personal conversations can inspire your network to get involved.

Giving Beyond the Holidays

While Christmas is a popular time for charitable giving, consider supporting your chosen cause throughout the year. Many charities rely on consistent contributions to fund their programs and operations.

Volunteer Your Time

In addition to financial donations, volunteering can be a rewarding way to give back. Many charities welcome extra hands during the busy holiday season and beyond.

Spread Awareness

Advocacy is another powerful way to support your chosen cause. Educating others about the importance of social justice, environmental conservation, or global health can amplify the impact of your efforts.

Creating a Personal Legacy of Giving

Donating to charity is more than a financial transaction; it’s a way to make a difference and embody the true meaning of the season. By carefully selecting a cause and organisation that aligns with your values, you can ensure your contribution creates lasting change.

This Christmas, take the time to research, reflect, and give with intention. Your thoughtful donation can uplift communities, inspire hope, and contribute to a better world for all. Whether supporting social justice, aiding the homeless, or protecting the environment, your act of kindness is a powerful testament to the spirit of giving.

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