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September 18, 2018
18 Sep 2018

Understanding SMEs and Credit Access in Tanzania

Credit Access in Tanzania

Tanzania is a highly populous East African country with a rapidly growing economy. The country’s average GDP growth of an estimated six percent has indicated significant economic growth and opportunity in the past decade, but credit access in Tanzania remains a challenge for many of the nation’s 56 million people.

Credit Access in Tanzania

In fact, Tanzania scored 13th out of 15 countries in Sub Saharan Africa for credit accessibility. Credit access in Tanzania is vital for the financial success of the country, which has both an annually growing population in the workforce and a high rate of poverty.

As an emerging market, many enterprises in Tanzania have struggled with restricted credit access, and 70 percent of all Tanzanian Small and Medium Enterprises, or SMEs, have no formal credit access at all. In fact, only 15 percent of the population has formal access to credit through banks. This lack of credit does not mean that Tanzanians are not borrowing money, as over half of those in the labor market have taken loans at some point.

Small and Medium Enterprises Loans

Rather than access credit formally, however, approximately 63 percent of Tanzanians use friends and family to access loans. Conversely, formal bank loans only accounted for three percent of all bank deposits in Tanzania.

Credit access in Tanzania is particularly important for Small and Medium Enterprises. According to a 2017 study conducted by the University of Dodoma in the Tanzanian capital, banks and microfinance corporations have enough liquidity to offer Small and Medium Enterprises loans.

Owners of SMEs, however, perceive these formal loans to be high risk due to the high-interest rates, strict loan conditions and numerous collaterals placed on these loans. This study determined that the Tanzanian government should intervene in the nation’s market “to regulate the conditions and requirements for loans” financing SMEs. This could be done by establishing credit bureaus in large cities to increase credit access in Tanzania for SMEs.

Tanzania’s New Credit Plan

Due to the difficulty for many Tanzanians to formally obtain a loan, as well as the mistrust of the population in formal bank loans, the federal government has proposed a new solution for credit access in Tanzania. As of April 2018, the Tanzanian government has enacted a new credit plan to improve private lending and reduce the frequency of bad loans.

This regulation of interest rates in banks, however, is not intended to be a direct rate cap, and should not hinder banking sector growth. This plan had been presented before in 2011, but was rejected by the government for fears of restricting the free market. While this move may be beneficial for SMEs in Tanzania, some banks with capital ratio issues may be hurt by the policy, further negatively affecting the economy.

High-Interest, Low Loans

Limited credit access in Tanzania, much like other developing countries, constricts the country’s economy and scope of financial operations. While Tanzanians often seek loans from sources other than banks, SMEs and other aspects of the country’s private sector have suffered the negative consequences of high-interest rates and low loan offers from banks.

Although capital ratio issue in some banks complicates the possible credit solution, the government of Tanzania seeks to resolve these problems through its new credit plan in order to continue to augment the nation’s economic growth.

– Matthew Cline

Photo: Flickr

in Tanzania /by /#permalink
September 8, 2018
08 Sep 2018

Girls’ Education in The Gambia

Girls' Education in The GambiaIn addition to its status as the smallest country in mainland Africa, The Gambia boasts impressive improvements in educational gender parity over the past twenty years. While structural barriers to education that affect girls disproportionately still exist, significant strides have been made to make education accessible to the girls across the country.

Primary schools have achieved gender parity

The Gambian school system consists of a basic education of nine years, broken into six years of primary school and three years of upper basic education.

Hopes for girls’ education in The Gambia are high, especially for the youngest ones. Since 2007, there has been an equal number of Gambian boys and girls enrolled in primary school. A significant portion of this success can be attributed to the Education for All initiative, led by UNESCO and implemented in 2004. The initiative aimed to achieve gender parity in primary school enrollment, and it obviously succeeded.

While the primary school enrollment gap has disappeared, primary school completion is a different picture. For every 100 boys that complete their basic education, only 74 girls do the same. Additionally, out of the girls that do complete basic education, only few will go to the secondary school. The secondary school enrollment rate for girls is very low, as girls constitute less than half of all secondary school students. From the social expectations placed on girls to the financial burdens of education, the structural barriers that prevent girls from continuing with their education are complex and numerous.

Social expectations of girls

In deciding whether or not to send their female children to school, families consider the opportunity cost. Girls in school cannot perform the domestic labor traditionally expected of them, which means they cannot provide immediate income for their families. Other direct costs, such as textbooks and uniforms, often present way to big of a burden on poor families.

This economic burden has long kept girls out of schools. As of September 2013, however, the Global Partnership for Education partnered with the World Bank and the Gambian Government to eliminate school fees for primary school. For families who could previously not afford to send their daughters to school, the primary school became accessible. As of September 2014, this was extended to upper basic and secondary schools as well. Before school fees were abolished, there were also scholarships specifically for girls available to encourage poor families to send their daughters to school.

Improvement of hygiene in schools

When feminine hygiene is inaccessible, girls are unable to attend school consistently. Historically, women period has forced girls to take time off school, making it difficult to keep up with coursework. To address this, the Education for All initiative began providing free sanitary pads at schools. A study done by The Gambia’s Ministry of Basic and Secondary Education (MoBSE) showed that this initiative significantly increased girls’ self-confidence and school attendance rates. After sanitary pads were supplied, girls’ attendance increased from 68 percent up to nearly 90 percent.

Community supports girls education

Dedicated Gambian mothers are standing up for their girls. Across The Gambia, numerous Mothers Clubs are raising money and awareness for girls’ education. UNICEF has provided them with labor-saving machines, such as milling machines, which lessen the female labor burden. Less time working means more time for school. UNICEF also provides some seed money for the women to embark on income-generating projects, which support their local schools and alleviate the indirect and direct costs of girls’ education.

An engaged community, driven by mothers and mobilized by foreign aid, is challenging the status quo to shape a brighter future for Gambian girls. Girls’ education in The Gambia has become a national priority. While social expectations for girls still impose barriers to education, the Gambian government, aided by UNICEF and UNESCO, has made education significantly more accessible to girls in this little country.

– Ivana Bozic

Photo: Google

in Education, The Gambia /by /#permalink
September 2, 2018
02 Sep 2018

Top 10 Facts about Poverty in France

FranceFrance may be known as a fabulous tourist destination that attracts around 89 million tourists per year, but many people who vacation there turn a blind eye to the 14.1 percent of the population (nearly 9 million people) that live below the poverty line. Here are the top 10 facts about poverty in France:

10 Facts About Poverty in France

  1. The definition of poverty in France follows that of the European Union. The poverty line in Europe is “60 percent of the populations median income” and is based on living conditions and employment levels. This means that more than 8 million people in France live on less than 954 euros a month.
  2. There is a considerable gap between the rich and the poor in France. The bottom 20 percent of the population earn almost five times less than the top 20 percent. This inequality is more obvious in the French city of Paris. Even though the overall poverty rate in the city of Paris is 14 percent, which is close to the national average, when you look at the underprivileged neighborhoods, the rate jumps to nearly 40 percent.
  3. In 2004, the poverty rate in France was at its lowest at 12.6 percent. However, that number has gone up. In 2015, 14.2 percent of the French population was living below the poverty line.
  4. France’s most vulnerable groups are among the most impoverished. According to a report published by the charity Secours Catholique, single women, children and foreigners are at the greatest risk of being impoverished. In 2016, Secours Catholique passed a comprehensive nine-year National Plan to address the issue of poverty in France with a focus on the higher risk population.
  5. There are several misconceptions about poverty in France. Seven out of 10 people in France believe it is easy to receive welfare. In actuality, of those who apply for unemployment, around 68 percent of those eligible for benefits will not receive them. Furthermore, up to 100 documents can be required in the application process.
  6. France is known to work to protect the rights of its citizens. It puts aside over one-third of its GDP to providing welfare protection. This is more than any other country in Europe.
  7. A new French law will require retailers to donate their unsold clothes to charity. Last February, a photo posted to Facebook showing a French clothing store destroying many unsold clothing items. This caused a great backlash from the public with many people commenting on how wasteful this was and that these clothes could benefit those in France who cannot afford to clothe themselves or their families. A French organization, Emmaus, which focuses on ending homelessness and poverty, worked with French officials to find a solution. French Prime Minister, Edouard Philippe, has introduced a law to take effect in 2019 that would ban retailers from throwing away unsold clothing and require the retailers to donate them to charity instead.
  8. France is home to many poverty-fighting organizations. The Restos du Coeur is one of the largest French organizations that helps with poverty alleviation. Their volunteers distribute thousands of hot meals every day. In fact, in 2015, 128.5 million meals were given out throughout France. Another organization, SOS Children’s Villages, is an international organization that has been very active in France. Parents who cannot take care of their children can seek the help of SOS Children’s Villages to offer support systems within the community to help provide a stable environment for the children in an effort to keep families together.  There are two SOS Social Centres in France, one in the north of France and one near Paris.
  9. French supermarkets must give away their unsold, expired food. Food waste is a global problem. After a unanimous vote by French Members of Parliament in 2015, supermarkets must now give away unsold food that has reached its sell-by date and are banned from destroying older food products. These unsold food products go to associations that collect and distribute the food to those in need. About 5,000 charities receive the unsold food throughout France. This law helps save up to 66 pounds of food per person every year.
  10. The 2018 World Cup brought hope to impoverished, immigrant, suburban French youth. Nineteen-year-old Kylian Mbappe is one of the newest stars on the French Soccer Team. Mbappe, and many other French teammates, are from mainly non-white suburbs that surround major cities in France. Mbappe is from Bondy, which is less than ten miles away from Paris, yet seems almost like a different world. The mayor of Bondy says that Mbappe’s success is “marvelous because so often people talk about suburbs in negative terms.” Other French soccer players are from suburban areas as well, like midfielder Paul Pogba, from the Lagny-Sur-Marne in the eastern suburbs of Paris.

These 10 facts about poverty in France shed light on the growing poverty problem in a place that seems as perfect as a postcard. Even first-world countries, including France, The United States, and Japan, can have poverty issues that the media does not focus on. However, with the work of the governments, charity organizations and the community, there is hope to alleviate poverty.

– Ariane Komyati

Photo: Flickr

in France, Hunger /by /#permalink
August 27, 2018
27 Aug 2018

Thought-Provoking Facts about Poverty in the UK

Although the United Kingdom (U.K.) is one of the largest economies in the world, the persistent battle with poverty is one that has plagued the nation for decades. Both the need for work and the average income level are nearly stagnant with little room for growth.

Persistent poverty is defined as experiencing low income continually for three or more years. For solutions to become clearer, the general public must become acquainted with the top 10 facts about poverty in the U.K.

Top 10 Facts About Poverty in the U.K.

  1. Britain has a lower proportion of its population living in relative poverty than most other European countries. Relative poverty is defined as a household with a disposable income rate of less than 60 percent, often referred to as “at risk” poverty.
  2. This means that most impoverished people living the in U.K. fall under the term “persistent poverty,” pointing to more households having an even smaller disposable income as well as experiencing poverty for an extended period of time.
  3. There are 13.3 million people in poverty in the U.K., and about 4.1 million of that population are children under the age of 18. Couples with children are five times more likely to raise them in an impoverished household than childless couples.
  4. Children in large families are at a far greater risk of poverty – 42 percent of children living in families with three or more children live in poverty. When accounted for childcare costs, an extra 130,000 children and their parents fall below the poverty line.
  5. Last year, around two-thirds of U.K. citizens took on jobs that paid less than a living wage, which resulted in more part-time work and more citizens needing to take multiple jobs. In recent years, there has been an economic push to increase the rate of pay for low-income workers, but progress is slow. In addition, once a family member is in a low-income job, it can be very difficult to move out.
  6. At least half of the U.K.’s impoverished population is working full-time and another 30 percent take part-time work. In Scotland alone, ten percent of working adults live in severe poverty.
  7. Many of the households on or near the poverty line (making less than £15,000 per year) spend more than a quarter of their income on housing. In fact, the poorest private renters and homeowners spend more than half of their income on housing. Around 5.8 million in the U.K. rent private housing — double since the last decade.
  8. Of the nine million people aged 14-24 living in the U.K., 2.7 million (30 percent) live in poverty — an amount higher than any other collective age group. Part of the reason that the rate among young people is higher is that they are more likely to live in privately-rented housing and spend a greater share of their income on housing costs.
  9. A higher proportion of women were persistently poor when compared to that of men — 8.2 percent compared to 6.3 percent, respectively.
  10. Women are 14 percent more likely to live in households with income levels that fall below the poverty line. As a result, single-parent homes lead by women are less likely to receive better healthcare, education and options to private housing.

A Bright Future

The United Kingdom continues to struggle in the terms of its poverty, but understanding these top 10 facts about poverty in the U.K. creates stepping-stones to a brighter future and helps alleviate people out of poverty.

– Tresa Rentler
Photo: Flickr

in United Kingdom /by /#permalink
August 27, 2018
27 Aug 2018

Time for Celebration: Paraguay Successfully Eliminates Malaria

Paraguay Successfully Eliminates MalariaParaguay has successfully eliminated malaria, making it the first country in the Americas to accomplish such a feat in nearly 50 years.

Victories Against Malaria

The country’s success has been attributed to its ability to detect malaria cases in a timely manner and discern whether or not the cases had been spread inter or intranationally. Between 1950 and 2011, Paraguay developed and implemented programs and policies meant to both control and eliminate the disease; the country registered its last case of P. Vivax Malaria, the most frequent cause of recurring malaria, in 2011.

After 2011, a five-year program focusing on case management, community engagement and public health education was launched in order to prevent transmission and prepare for official “elimination certification.”

Since the program’s completion in 2016, the Ministry of Health has launched a three-year initiative meant to further train Paraguay’s healthcare workers in regards to malaria. This prioritization will inevitably strengthen the country’s ability to promptly detect, diagnose and treat new malaria cases, as well as address the ongoing threat of “malaria importation.” The country has also prioritized controlling and minimizing mosquito populations within its borders.

New Directions and Prioritizations

The elimination of malaria provides economic leverage for Paraguay’s impoverished population. The significant financial burden of approximately $5 a day per malaria case, according to a study published by the U.S. National Library of Medicine, will no longer plague Paraguayan families. Such relief will help enable them to direct their money towards other essentials, such as food and education.

Poverty affects almost 40 percent of Paraguay’s rural population, as opposed to only 22 percent of its urban population. Peak malaria infection often coincides with harvesting season, severely impacting the amount of food rural families are able to produce.

Malaria cases are typically concentrated in said rural areas, where many lack the resources and public health education to adequately detect or treat the virus. The immediate situation of these rural communities is only impacted by instances of extreme flooding, which act as a breeding ground for mosquitos (potential carriers of the virus).

Points of Impact

Malaria primarily occurs in poor, tropical and sub-tropical regions of the world, most of which don’t have adequate access to primary care facilities – in many of the countries it’s present, malaria is the primary cause of death.

The virus is the result of a parasite carried by mosquitos. The most common symptoms of malaria include chills, fever and other flu-like symptoms. Left untreated, the disease can be fatal.

The groups most vulnerable to high levels of malaria transmission include young children and pregnant women. Malaria caused approximately 216 million clinical cases and over 440,000 deaths in 2016 alone.

Future Goals to Successfully Eliminate Malaria

The success of these programs provides a blueprint for other countries to successfully eliminate malaria themselves. Paraguay’s situation contrasts with those of other countries within the Americas, where the increase in malaria cases is greater than in any other region of the world. In fact, nine different countries reported malaria case increases of at least 20 percent between 2015 and 2016.

As a whole, however, Latin America witnessed over a 60 percent decrease in malaria cases between 2000 and 2015. As treatment and surveillance progress, many other countries will follow Paraguay in eliminating the virus. Argentina is expected to be certified later this year, and other malaria-free Latin American countries include Ecuador, El Salvador and Belize.

– Katie Anastas
Photo: Flickr

in Global Poverty, Malaria, Paraguay /by /#permalink
August 12, 2018
12 Aug 2018

Girls’ Education in Bulgaria Requires Much Improvement

Girls’ Education in BulgariaGirls’ education in Bulgaria is severely lacking in Roma communities, in part due to poor socioeconomic conditions and also as a result of the communities’ social norms. Many Roma children live below the poverty line which creates barriers to achievements in education, even barring some children from finishing primary school.

The Current Situation in Bulgaria

Often families cannot keep up with the costs of schooling. Boys will leave school for work to support the family and girls will stay home to care for children and chores. Women also abandon education because of early marriage or pregnancy.

The majority of the annual 45,000 student dropouts in Bulgaria are of Roma ethnicity. An estimated 130,000 children do not attend school in Bulgaria—most of them are Roma—and 22 percent of the Roma population in the Bulgarian area are illiterate, with only nine percent having reached a secondary education.

Why Roma Women Get Left Behind

In the past, the Roma marriage age was lower (15-16 for girls and 17-18 for boys). However, a small but increasing trend in higher-aged marriages among the young Roma community members has begun to take hold. Now the average marriable age is 17 years for women and 18.9 for men.

The older women get married, the longer they can stay in the education system and finish primary school. Continuing school after marriage for women is almost unheard of as the traditional role of being a committed wife and mother would make further education strenuous.

Certain actions, like dropping out of school and marrying young, are seen by officials in Bulgaria as typical Roma behavior. There has been a reoccurring pattern of Roma girls ending their education around fifth grade and the municipalities do not exercise the statutes that prevent early dropouts.

According to article 36, paragraph 1 of the of the Bulgarian National Education Act, the Municipal Councils are expected to “ensure compulsory school education of children up to the age of 16,” however there is little done to enforce this. Thus, Roma girls in Bulgaria are still leaving school at an early age. There is very little action from social workers, as they see school dropout and young marriages as the cultural Roma norm.

Improving Girls’ Education in Bulgaria

A report from UNICEF suggests strategies that could help alleviate some of the socioeconomic problems surrounding girls’ education in Bulgaria, recommending ways of mitigating the costs of education through financial assistance that will provide free programs and food at schools. Other ways of alleviating high dropout rates are reaching out to communities in isolated areas and either building a school in those places or providing free transport to other campuses.

While financial issues are prominent, social discrimination is another main contribution to dropout rates. UNICEF’s report also provides strategies that may ease the discrimination against and segregation of Roma citizens: providing national and local monitoring to ensure each child is included and progressing through the educational system. Investing in early education could also provide an opportunity for education to people who otherwise would not have had the chance.

The trending increase in marrying age is a good sign, but unless Bulgarian officials come forward to enforce primary education for all, the drop out rate will continue to disproportionately affect young Roma women. With further effort, opportunities to better girls’ education in Bulgaria, especially among Roma communities, will continue to arise.

-David Daniels
Photo: Flickr

in Bulgaria /by /#permalink
August 8, 2018
08 Aug 2018

Top 10 Facts about Poverty in Greece

top 10 facts about poverty in GreeceAlthough Greece may be known for its crystal clear blue waters, luxurious islands and fascinating ancient architecture, it is currently going through one of its greatest economic crises in Greek history. Here are the top 10 facts about poverty in Greece:

Top 10 Facts about Poverty in Greece

  1. Europe measures poverty using a metric called “relative poverty”: According to diaNEOsis Research and Policy Institute, people who live in relative poverty “have income that is lower than a set percentage of the economy’s median income. In Europe, the relative poverty threshold is currently set at 60 percent of median income”.
  2. Between 2011 and 2015, the relative poverty population increased by more than 1 percent.
  3. The percentage of the total population living in extreme poverty has rapidly increased in the past decade. Extreme poverty in Greece can range from 182 euros per month for a single member suburban or rural household, to 905 euros per month for parents with two children living in Athens and paying rent. In 2009, the percentage of the population in Greece living in extreme poverty was about 2.2 percent. In 2011, the percentage was 8.9. In 2015, extreme poverty levels stood at about 15 percent.
  4. Jobs are especially difficult to find for young people living in Greece. Half of the people between the ages of 15 and 25 are out of work. In some areas of Western Greece, youth unemployment is over 60 percent.
  5. Between 2008 and 2016, nearly half a million Greeks left the country. A year before Greece’s debt crisis arose, an exodus began. The main motive of the emigres was to find work.
  6. The Prime Minister of Greece, Alexis Tsipras, wants to raise the minimum wage in Greece. According to a New York Times article, Tsipras “has vowed to reverse some of the harshest austerity after August. He wants to raise the minimum wage and possibly restore unions’ collective bargaining power, which was cut under the terms of the bailouts”.
  7. Greece’s Red Cross provides various services to those in need all over Greece. The Hellenic Red Cross has 75 offices and 42 committees. Their work includes centers for social support and integration of refugees, free vaccinations for infants and children, health services and education programs, housing assistance for the homeless and much more.
  8. One of the nonprofits in Greece called Boroume (which translates to “we can” in Greek) serves over 20,000 meals a day to those in need and helps to reduce food waste while increasing the food supply in over 80 locations in Greece. Boroume has provided those in need over 20 million meals since 2011 and has a team of over 700 volunteers. The organization has also saved and distributed over 100 tons of fresh vegetables and fruits.
  9. By April 2018, there were over 51,000 migrants and refugees in Greece. Many of the Syrian refugees paid smugglers to help them cross the Aegean sea to get to Greece. They arrived on the island of Lesbos in Greece where they were not permitted to leave until their requests for asylum were processed. If granted asylum, the refugees were allowed to go to mainland Greece and live in either subsidized housing or a refugee camp.
  10. The Hellenic Red Cross provides cash assistance to refugees stranded in Greece. They help asylum seekers to buy necessities such as food, clothing and medicine. By December 2017, the Hellenic Red Cross had helped 2,750 people.

These top 10 facts about poverty in Greece are important to know in order to understand the impact economic crises has on its citizens. Although Greece is starting to recover from its crisis, they still have a long way to go.

Photo: Flickr

– Ariane Komyati

in Global Poverty /by /#permalink
August 8, 2018
08 Aug 2018

10 Facts About Poverty in Laos That Everyone Should Know

Facts About Poverty in Laos
Laos, officially known as the Lao People’s Democratic, is the only landlocked country in Southeast Asia. Ranked as one of the most corrupt countries in the world by Transparency International, Laos also suffers from major poverty. To get a better understanding of the daily struggle in Laos, below are 10 facts about poverty in Laos.

10 Facts About Poverty in Laos

  1. According to Vision Launch Discover, 90 percent of Lao people lived off of $1 a day in the 1990s; now, this number is about $1.25. The other 10 percent live in Vientiane, the capital and largest city of Laos. Vientiane draws in the most wealth as the economic center of Laos.
  2. Laos is the most bombed country in history because of World War II. From 1964 to 1973, the U.S. dropped more than 2 million tons of ordnance over Laos during 580,000 bomb missions. Fifty people a year are killed from unexploded bombs left over from the war. These bombs scattered around the country are usually mistaken for toys and get tossed around before exploding; thus 40 percent of bomb deaths are children. Since 80 percent of people depend on their land to eat and live, people in Laos have no choice but to risk their lives working in fields covered in unexploded bombs.
  3. Forty-four percent, or 363,000, of Lao children under 5 years old are affected by stunting, a highly common condition in Laos. Stunting is usually caused by maternal undernutrition before and during pregnancy.
  4. More than 60 percent of children are malnourished and anemic. These conditions become potentially fatal due to the inadequate nutrition and lack of access to healthcare providers.
  5. Although improving, 23.2 percent or about 1.4 million Laos people are still living at or below the poverty line. Still, this is a major improvement from the 33.5 percent of the past.
  6. Agriculture is a key pillar in life in Laos, accounting for 80 percent of employment. The most important and produced crops are rice, vegetables, beans, sugarcane, starchy roots and tobacco.
  7. Education is scarce; therefore, people are forced to work in agriculture since there is little to no access to established schools and workplaces. According to United Nations Lao PDR, 70 percent of employed people work in agriculture and over a third of them don’t make enough to live sufficiently.
  8. Women receive less schooling but work longer hours than men; however, 70 percent of the illiterate population are women. According to UNESCO, more than 4,000 villages lack access to education.
  9. Two-thirds of people have a short supply of food and living essentials. During May and October of 2010, Laos faced what community leaders called the worst drought in living memory after Typhoon Ketsana in late 2009. This drought left 85,000 people affected with no seeds to harvest and no place to live. While poor climate is not unusual in Laos, this puts more burden onto the people that depend on their land to survive.
  10. For more than 20 years, the United States has donated more than $100 million to support UXO programs. This money is intended to clean up unexploded ordinances and give victims access to rehabilitation centers. Also, in February 2016, the United States and Laos signed to a Trade and Investment Framework Agreement, which will allow more opportunities and investments between the two nations.

Hardship and Progress

These top 10 facts about poverty in Laos illustrate the struggles and hardships that Laos people face daily. However, despite being one of the poorest countries in Southeast Asia and the entire world, about half a million of Laos people have been lifted out of poverty thus far.

Fortunately, the United States and Laos continue to rebuild a relationship with each other with a goal of saving lives and rebuilding a better country for the Laos people.

– Kristen Uedoi
Photo: Flickr

in Global Poverty, Laos /by /#permalink
August 5, 2018
05 Aug 2018

How Credit Access in Zambia Can Boost Employment Rates


Credit access in Zambia is limited with only 38 percent of adults having some level of formal financial inclusion. While this number represents progress — as that percentage used to be a mere 23 percent — it also indicates that there is still room for development in the private and financial sector of Zambia.

The Financial Sector Deepening Zambia (FSDZ) is making a substantial effort to increase the availability of financial services and credit access to individuals in Zambia. By working with financial service providers, policymakers and civil society, FSDZ is creating an environment of greater financial inclusion in Zambia.

The Root of the Lack of Credit Access

One of the largest economic drivers in Zambia and several other developing countries are Small and Medium Enterprises (SMEs). SMEs are pivotal to increasing the economy, as they often provide opportunities for low-income people and contribute to Zambia’s GDP by creating growth opportunities. In Zambia, the SME sector comprises approximately 97 percent of all businesses.

However, a majority of SMEs in Zambia face obstacles when attempting to gain support from Financial Service Providers like banks and microfinance institutions to grow their portfolios. According to a business survey conducted in Zambia, a majority of SMEs do not belong to a formal business association or network. Due to this, business owners and farm owners often can only rely on their limited network of friends and family for business, which is not a sustainable growth model.

Conversely, financial institutions emphasize that SME owners often do not have the capacity to prepare bankable business proposals, which was a large constraint to accessing finance. Better relationships between Financial Service Providers and owners of SMEs may create a path of greater understanding and thereby greater financial inclusion.

Long-Term Effects of Enhancing Zambia SMEs Access to Finance

Improving credit access in Zambia and addressing its financial inclusion strategy is key to not only increasing formal financial inclusion but also to growing and developing Zambia’s ever-changing economy. Increasing financial literacy among small and medium enterprise business owners will allow them advocate for themselves among financial institutions. Organizations like International Trade Centre (ITC) work to do just that, facilitating access to financial supply for SMEs with high growth potential.

So far, ITC has provided 105 growth-oriented small or medium enterprises with business development training and individual counseling that improves business management. All of the SMEs that underwent training developed growth strategies that helped them increase sales, invest in new technologies and hire more staff. Through the timeframe of the project, 50 percent of the SMEs that received support and training were able to access formal finance.

The Ripple Effect

Increasing financial inclusion in Zambia will have a ripple effect: if Financial Service Providers provide access to services to owners of SMEs, then SMEs will have more room for growth. If SMEs grow their businesses, then there will be more opportunities for employment, especially for the country’s poor, thereby decreasing poverty rates.

There is still much that needs to be done for Zambia to become more stable as an economy. However, if business owners receive more access to formal financial institutions, then credit access in Zambia will produce many opportunities for its citizens, lead to a more robust economy and alleviate poverty rates.

– Shefali Kumar
Photo: Flickr

in Credit Access, Zambia /by /#permalink
August 5, 2018
05 Aug 2018

10 Eye-Opening Facts about Human Rights in Haiti

Top 10 facts about human rights in Haiti
Located on the island of Hispaniola, Haiti is home to a population of around 11 million people and has been victim to environmental disasters and political corruption. These issues are still prevalent today and continue to affect Haitians around the country; here are 10 facts about humans rights in Haiti that everyone should know.

10 Facts About Human Rights in Haiti

  1. Throughout history, Haiti has suffered many natural disasters that have ruined entire regions and left families homeless and in dire need of government support. The last category-5 hurricane – Hurricane Matthew – killed around 336 people, and displaced more than 60,000 others. The Haitian government worked with UNICEF and other humanitarian programs since to assist families and children and provide clean drinking water.
  2. The prison system is one of the greatest human rights issues in Haiti. Haitian prisons have the highest overcrowding rate in the entire world, and around 80 percent of the inmates are still awaiting trial and have never been convicted of a crime.
  3. Haiti’s illiteracy rate is the highest in the western hemisphere. Despite efforts to reform the education system, the country still faces shortages in school supplies and qualified teachers. Enrollment rates, however, have been steadily increasing, allowing Haitian children the fundamental right to receive an education.
  4. The displacement of Haitian children after the 2010 Hurricane led to a striking increase in human trafficking. Today, around 30,000 children live in orphanages. Many of these so-called “orphanages” are actually trafficking businesses exploiting children and forcing them to work in dirty, inhumane environments. J.K. Rowling, the writer of the best-selling Harry Potter novels, has created a non-profit organization called Lumos that strives to end corrupt human traffickers from preying on vulnerable children.
  5. In 2015, allegations were made about fraudulent behavior related to the presidential election in the nation. After the allegations were confirmed in 2016, another election was held and declared Jovenel Moise as the new Haitian president in 2017. Recently, Moise has been in political turmoil over the new fuel price hike and Haitians are violently demanding that he step down from office.
  6. The LGBTQ community continues to suffer substantial discrimination from the Haitian government. In 2017, the Haitian Senate introduced a bill that grouped homosexuality as a reason to deny a citizen a certificate, and included child pornography and incest; the Senate has since approved the bill.
  7. The Haiti labor code does not set a minimum age for work in domestic services. Restaveks, also known as child domestic workers, are often impoverished girls sent to work for wealthy families in hopes of a better lifestyle. These children end up receiving no schooling, work long hours and are often victims of sexual abuse.
  8. Haiti has the highest rate of infant, toddler and maternal mortality in the western hemisphere. Haitians are deprived of basic human rights such as healthcare — 60 percent lack healthcare access.
  9. Refugee rights are the same thing as human rights. Haitians were given a temporary status (TPS) given to eligible nationals of certain countries who reside in the United States. The U.S. Department of Homeland Security announced a decision to terminate protection for around 60,000 people, making Haitians at risk of deportation in the U.S.A.
  10. Food insecurity has also been exacerbated by natural disasters. Thirty-eight percent of Haitians are food insecure and do not have basic access to food. Subsequently, food prices are on the rise and destruction of agricultural fields have only worsened the food deficit within the country.

Proactive and Concentrated Efforts

These 10 facts about human rights in Haiti raise many concerns. Nevertheless, nationwide and international programs are dedicated to finding solutions to provide a better lifestyle for people in Haiti.

– Lilly Hershey-Webb
Photo: Flickr

in Global Poverty /by /#permalink