Known for its tropical vistas and banana plantations, Costa Rica has also developed a well-deserved reputation for stability. Indeed, since abolishing its military in 1949, the small Central American nation has celebrated seven decades of uninterrupted democracy. While this stability has allowed Costa Rica to make great strides in alleviating poverty, however, nearly 21 percent of the country still remains impoverished. To this end, many in Costa Rica are increasingly turning to microfinance as a potential remedy.
Why Microfinance?
Microfinance is a banking service that focuses on delivering small loans to communities underserved by traditional banks. These ‘microloans’ can be as low as $100 and are specifically designed to help meet the needs of low-income families.
Because the principal of a microloan is much smaller than that of a traditional loan, lenders can afford to take on risks they otherwise could not. This means less stringent requirements on things like documentation and property, which are traditionally the largest obstacles to acquiring credit for those living in poverty. As a result, microfinance has become a favorite tool of activists in the developing world.
Costa Rica is no exception in that regard. With more than half of Costa Ricans unable to raise needed funds in an emergency, microfinanciers provide the country a crucial service.
Keeping Small Farmers and Rural Communities Afloat
One reason microfinance has been able to take off so quickly in Costa Rica lies in the country’s history. In the 1980s, a prolonged economic crisis prompted traditional banks to retreat en masse from Costa Rica’s rural areas. This left many small farmers suddenly lacking access to badly needed credit.
To help combat this issue, organizations like FINCA began seeking ways to encourage sustainability in rural financial markets. One such solution was microfinance.
Beginning in 1984, FINCA Costa Rica set about building a series of ‘village banks’ in the areas hit hardest by the loss of financial services. These were largely community-run, shared-liability ventures whose purpose would be to offer microloans to farmers. It did not take long for the model to become a success. Village banks quickly began to attract Costa Rican farmers, many of whom would have had difficulty acquiring a standard loan. In fact, the village banks would prove so popular that within a decade they had already become self-sustaining.
Others in Costa Rica soon took note of FINCA’s success. Though not all would copy the village bank model, many other microfinancing operations began to sprout up around the country.
Empowering Costa Rican Women
While FINCA’s village banks primarily served a demographic consisting of rural, male farmers, modern microfinanciers pursue a more diverse client base. Women in particular are a focus for many.
Research demonstrates a sharp gap in financial access along gender lines in Costa Rica. Thirty-nine percent of Costa Rican women lack a bank account, for instance, compared to 25 percent of men. This is a pattern that largely holds consistent across the developing world. Although in many cases women provide necessary income for their families, they often lack the means to build upon those earnings. This leaves them more vulnerable to the sudden economic shocks that can devastate a household, like personal medical emergencies and unexpected changes in consumer trends.
Microfinance institutions empower these women, however, by offering them the credit needed to start a business of their own, and by providing them with a newfound resiliency.
Thanks to the efforts of organizations like Fundación Mujer, women now own more than 22 percent of Costa Rican businesses. And, as the number of women gaining access to loans and other financial services increases, that percentage is only expected to grow. This means greater social mobility for Costa Rican women and a stronger ability to weather the storm in times of crisis.
The Future of Microfinance in Costa Rica
Microfinance in Costa Rica has come a long way from its first experiments with village banks in the 1980s. As it stands, Costa Rica is now one of the world’s largest microfinance markets. And, with the industry expected to grow by a further 5-10 percent in Latin America over the next decade, it is unlikely that will change any time soon.
While experts caution that microfinance cannot be seen as a ‘miracle cure’ for poverty, it is undeniable that it can provide real benefits to those in need. To see that, one only has to consider the success of microfinance in Costa Rica.
– James Roark
Photo: Pixabay.com
The Benefits of Microfinance in Costa Rica
Known for its tropical vistas and banana plantations, Costa Rica has also developed a well-deserved reputation for stability. Indeed, since abolishing its military in 1949, the small Central American nation has celebrated seven decades of uninterrupted democracy. While this stability has allowed Costa Rica to make great strides in alleviating poverty, however, nearly 21 percent of the country still remains impoverished. To this end, many in Costa Rica are increasingly turning to microfinance as a potential remedy.
Why Microfinance?
Microfinance is a banking service that focuses on delivering small loans to communities underserved by traditional banks. These ‘microloans’ can be as low as $100 and are specifically designed to help meet the needs of low-income families.
Because the principal of a microloan is much smaller than that of a traditional loan, lenders can afford to take on risks they otherwise could not. This means less stringent requirements on things like documentation and property, which are traditionally the largest obstacles to acquiring credit for those living in poverty. As a result, microfinance has become a favorite tool of activists in the developing world.
Costa Rica is no exception in that regard. With more than half of Costa Ricans unable to raise needed funds in an emergency, microfinanciers provide the country a crucial service.
Keeping Small Farmers and Rural Communities Afloat
One reason microfinance has been able to take off so quickly in Costa Rica lies in the country’s history. In the 1980s, a prolonged economic crisis prompted traditional banks to retreat en masse from Costa Rica’s rural areas. This left many small farmers suddenly lacking access to badly needed credit.
To help combat this issue, organizations like FINCA began seeking ways to encourage sustainability in rural financial markets. One such solution was microfinance.
Beginning in 1984, FINCA Costa Rica set about building a series of ‘village banks’ in the areas hit hardest by the loss of financial services. These were largely community-run, shared-liability ventures whose purpose would be to offer microloans to farmers. It did not take long for the model to become a success. Village banks quickly began to attract Costa Rican farmers, many of whom would have had difficulty acquiring a standard loan. In fact, the village banks would prove so popular that within a decade they had already become self-sustaining.
Others in Costa Rica soon took note of FINCA’s success. Though not all would copy the village bank model, many other microfinancing operations began to sprout up around the country.
Empowering Costa Rican Women
While FINCA’s village banks primarily served a demographic consisting of rural, male farmers, modern microfinanciers pursue a more diverse client base. Women in particular are a focus for many.
Research demonstrates a sharp gap in financial access along gender lines in Costa Rica. Thirty-nine percent of Costa Rican women lack a bank account, for instance, compared to 25 percent of men. This is a pattern that largely holds consistent across the developing world. Although in many cases women provide necessary income for their families, they often lack the means to build upon those earnings. This leaves them more vulnerable to the sudden economic shocks that can devastate a household, like personal medical emergencies and unexpected changes in consumer trends.
Microfinance institutions empower these women, however, by offering them the credit needed to start a business of their own, and by providing them with a newfound resiliency.
Thanks to the efforts of organizations like Fundación Mujer, women now own more than 22 percent of Costa Rican businesses. And, as the number of women gaining access to loans and other financial services increases, that percentage is only expected to grow. This means greater social mobility for Costa Rican women and a stronger ability to weather the storm in times of crisis.
The Future of Microfinance in Costa Rica
Microfinance in Costa Rica has come a long way from its first experiments with village banks in the 1980s. As it stands, Costa Rica is now one of the world’s largest microfinance markets. And, with the industry expected to grow by a further 5-10 percent in Latin America over the next decade, it is unlikely that will change any time soon.
While experts caution that microfinance cannot be seen as a ‘miracle cure’ for poverty, it is undeniable that it can provide real benefits to those in need. To see that, one only has to consider the success of microfinance in Costa Rica.
– James Roark
Photo: Pixabay.com
Combating Homelessness in El Salvador
In 2001, a major earthquake struck El Salvador leaving many helpless and on the streets. El Salvador is the smallest country in Central America despite having a dense population of 6 million people. Now, homelessness in El Salvador is at an all-time high. Currently, over 40% of the population live in run-down homes with dirt for floors. This roughly translates to upwards of 2 million people living in disheveled and decrepit homes. Luckily, there are organizations working towards rebuilding El Salvador.
3 Organizations Combatting Homelessness in El Salvador
Though El Salvador faced great destruction in the past, it is working towards rebuilding. Through organizations like Habitat for Humanity, New Story Charity and La Carpa, homelessness in El Salvador is reducing and many of the displaced are moving off the streets and into homes.
– Erin Henderson
Photo: Flickr
5 Facts About Hepatitis B in China
5 Facts about Hepatitis B in China:
There is a constant struggle in the medical community regarding the availability of resources to curb an outbreak. The World Health Organization (WHO) calls for hospitals and organizations to provide more information about possible treatments to those that lack education on the topic. WHO also urges hospitals to sign up for projects providing immunizations to newborns and pregnant women with hepatitis B in China. With these efforts, WHO maintains the goal of eliminating hepatitis B in China by 2030. As the epidemic continues, China has made innovative strides to combat the spread.
– Ashleigh Litcofsky
Photo: Flickr
Combating Intensified Hunger in Zimbabwe
Since the beginning of the COVID-19 crisis, Zimbabwe has faced crippling issues of hunger, starvation and high malnutrition rates. The World Food Programme (WFP) recorded in December 2019 that 7.7 million people living within Zimbabwe were food insecure. Moreover, Global Citizen reported that approximately 90% of children between the ages of 6 months and 2-years-old may die without food aid. Here is some information about intensified hunger in Zimbabwe.
COVID-19 is Intensifying Hunger
The population of people lacking sustenance in Zimbabwe–half of its total population–has only grown since the conception of COVID-19. There has been an increase of nearly 10 million people surviving on less than one meal a day since COVID-19.
Reginald Moyo, a resident of Cowdray Park, Bulawayo, Zimbabwe told The Borgen Project that the “majority of the people don’t have permanent jobs and they [live] by hand to mouth, so [with] a month without working[,]…they are now facing starvation.” Many people are working to address this growing crisis. The people of Zimbabwe, international organizations and the Chinese government have provided aid to Zimbabweans in need.
Efforts from International Organizations
On May 4, 2020, the U.N. entities of Zimbabwe, working with the Food and Agriculture Organization of the United Nations (FAO), released an official food analysis report in response to the growing hunger in Zimbabwe. The report stated that “The total funding required to assist the 3.7 million people by the international humanitarian community for July 2019 to April 2020 amounts to USD 331.5 million.” The effects of COVID-19 have intensified hunger in Zimbabwe and increased the need for assistance. The Global Humanitarian Response Plan (GHRP) requested an additional 6.7 billion USD to combat hunger in order to protect lives.
However, aid is not only monetarily based. In 2002, the nonprofit group Action Against Hunger set a goal to provide food aid, healthcare, sanitation/hygiene needs and water to countless Zimbabweans in need. It estimated in 2018 that its efforts aided 25 Zimbabweans through nutrition and health programs; gave 52 people water, food and healthcare; and dispensed 3,187 people with food. Action Against Hunger not only gave the required resources for survival but also provided education on how local Zimbabwe efforts could improve hunger in their country.
Response from Zimbabwe’s Government
On March 30, 2020, President Mnangagwa reopened the markets to aid small-scale farmers and traders in the difficulties they faced since the beginning of the COVID-19 pandemic. While this may seem to not directly address hunger in Zimbabwe, the decision has determined their survival in the upcoming months. Prior to this change, farmers and traders could not go outside or attend to their crop which limited their income as well as their food supply.
The Borgen Project interviewed Nkocy Thando, a farmer living in rural areas within the Bulawayo area of Zimbabwe. Thando stated that since the markets have opened up again, locals have been able to “work when they open in the morning to three [in] the afternoon.” He expressed his immense gratitude for this change and stated that he felt that “all would be okay soon.”
Aid from China
The Chinese Embassy and the private sector are also combating hunger in Zimbabwe by addressing COVID-19 needs. RFI, a worldwide French news and current affairs broadcast reported that China’s efforts have included:
Diverse Responses
There are many organizations working to address the existing and intensifying issues of hunger, starvation and high malnutrition rates in Zimbabwe. However, their solutions range from governmental mandates reopening markets to increased funding for poverty-reduction organizations in the United Nations (UN). While the current responses to hunger in Zimbabwe seem mainly focused on COVID-19 efforts, they still are making a difference in combating intensified hunger in Zimbabwe.
– Alexis LeBaron
Photo: Flickr
USAID’s Work In Uganda
Uganda has been noted as an African country that is on the rise out of poverty. This is partly due to foreign assistance coming from countries like the United States. The United States Agency for International Development (USAID) has carried out work in Uganda excelling improvements in economy, health care, education, and the state of democracy.
Economic Growth
USAID has been engaged in Uganda’s efforts to reduce poverty and hunger. Among many other goals, Uganda and USAID are working with public and private sectors to promote investment, agriculture production, food security and efficient energy usage. US based programs like Development Credit Authority, Feed the Future Youth Leadership for Agriculture and Global Development Alliances, have assisted in Uganda’s success of lowering the poverty rate. By connecting Ugandans with businesses to market their products, USAID is helping to improve household incomes as well as stabilize the country’s gross domestic product. Investments in the future are also being made by training youths for the job market and connecting farmers, refugees, and workers with agricultural resources and trade opportunities.
State of Democracy
USAID works with the Ugandan government to bring up issues regarding transparency, human rights, and justice for citizens. USAID’s democracy program in Uganda particularly focuses on women and youths as a voice to be heard. The USAID’s overall objective of promoting civil society encompasses the opportunity for citizens to part-take in the governing process while leaders are working for the people. Improving the democracy of Uganda will help build a strong and independent country, which in turn will partake in flourishing the entire region.
Education and Training
With a high number of vulnerable children, USAID is working with the Ugandan government to implement plans providing education for young children, while focusing on teaching languages and educating on health, HIV/AIDS and violence. USAID is also striving to develop the future workforce with the Better Outcomes for Children and Youth activities, which helps youths cultivate the skills needed for success, both in work and in life. There is also new training available for teachers, with improved computer technology.
Health and HIV
USAID’s effort in addressing health care issues in Uganda includes eliminating HIV/AIDS through the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR), reducing tuberculosis infection rates, and eradicating malaria under the U.S. President’s Malaria Initiative (PMI). Other health care programs include child and maternal health, family health, and disease prevention, as well as educating young women on sexual violence and HIV/AID protection. Since many diseases are spread through poor sanitation, USAID’s work in Uganda also focuses on improving water sanitation and hygiene practices.
Humanitarian Transitions
Through USAID, the U.S. is helping Uganda with emergency food supplies, health care assistance, and conflict resolution in democracy to improve the country’s status and enhance people’s quality of life. The continuing basis of humanitarian aid effort has made the U.S. the “largest single honor of humanitarian assistance in Uganda,” according to Anne Ackermann, a photojournalist with USAID.
USAID’s continuing work in Uganda, along with the positive outcomes seen by the country so far, underscores the effectiveness of overseas involvement and the power of foreign aid in general. Foreign aid will always have an important role in country development and growth.
– Hung Le
Photo: Flickr
10 Facts about Sanitation in Zambia
10 Facts About Sanitation in Zambia
Zambia has made substantial progress in sanitation since the early 2000s. It has developed plans to decontaminate drinking water and replace poor sanitation facilities. However, as Global Waters has indicated, there is still a considerable need for improved sanitation guidelines across the country to ensure every citizen has access to clean water. These 10 facts about the sanitation in Zambia shed light on these issues.
– Kacie Frederick
Photo: Flickr
Hunger, War and an American Dream
The Borgen Project has published this article and podcast episode, “Hunger, War and an American Dream,” with permission from The World Food Program (WFP) USA. “Hacking Hunger” is the organization’s podcast that features stories of people around the world who are struggling with hunger and thought-provoking conversations with humanitarians who are working to solve it.
In the early 1990s, Abdi Nor Iftin was a child. Just like other children across the globe, he loved playing outdoors, bickered with his brother and dreamed of being a Hollywood star. Unlike most other children, however, Abdi was starving – simply because he was living in Somalia during a time of drought and civil war.
Abdi lived through the unthinkable, but he was one of the fortunate ones; he survived. Rescued from the brink by perseverance, luck and humanitarian aid, he’s now a successful author living in the U.S. with a story he’s eager to tell.
“I want the world to know both what I went through and how I was helped,” Abdi says. “Maybe then, we can prevent these tragedies from happening again.”
Click on the link below to learn more about Abdi’s inspiring journey.
Photo: Flickr
8 Facts About Tuberculosis in Russia
8 Facts About Tuberculosis in Russia
Tuberculosis and COVID-19 pandemics present unique challenges both individually and as they co-occur. However, existing community based treatment models for tuberculosis in Russia may contain useful lessons as we learn to treat COVID-19.
– Isabelle Breier
Photo: Flickr
Tackling Energy Poverty in Italy
Energy Poverty in Italy
Energy poverty has become a serious concern for government officials in Italy, especially since the war between Russia and Ukraine began. The Russia-Ukraine war pushed Italy to work relentlessly towards providing itself with other power sources to become independent of Russian gas. This included record highs of solar panel and heat pump installments to adapt to the crisis.
The elderly, immigrants, low-income and single families have been greatly affected by these circumstances. Especially in places like Naples that have some of the highest poverty rates in the country. According to PresnaLatina.com, “nearly 1.4 million children” live in absolute poverty.
The effects of energy poverty include declining health, inability to pay bills, loss of electricity in the home due to poor energy efficiency, little to no knowledge about renewable energy and inflated prices. This has led to an increase in people having very little access to green living.
Combatting Energy Related Poverty
Italy has introduced the National Resilience and Recovery Plan (NRRP) to increase the usage of renewable energy. The aim is to eliminate coal by 2025 and increase electricity production from renewables by up to 72%. Trade.gov states that “Italy has devoted €59 billion to incentivize renewables between 2021–2026”.
Organizations such as Enco, Fondazione Famiglia di Maria and Legambiente Campania have been working with families to educate them on how to utilize green energy. For example, Fondazione Famiglia di Maria has provided workshops for the children of low-income families to learn about recycling, the difference between fossil fuels and renewable energy, and assisted the children with making plans for creating a greener friendly environment. Meanwhile, Legambiente Campania showed families how to monitor their energy consumption, how to read bills and gave them tips on when to use electric appliances. Also, Enco functions as a start-up that supports renewable energy communities in the making.
The works of Fondazione Famiglia di Maria and Legambiente Campania have allowed neighborhoods like San Giovanni the opportunity to transition into using clean energy for little to no cost. In addition, Fondazione con il Sud, a nonprofit organization, donated over 100,000 dollars to Fondazione Famiglia di Maria and Legambiente to install solar panels in San Giovanni in 2020 which generated about 65,000 kWh for the year which was enough to power 20 homes.
Looking to the Future
Acts of service from organizations like these will help uplift low-income families out of poverty. Increased usage of green energy means more jobs. Plus, the workshops children have been attending will give them the skills needed to be designers, installers, engineers and planners to continue to build green-friendly neighborhoods like those they are creating for themselves.
In addition, it gives families a chance to generate income. With the excess energy produced from their solar panels, they can sell them to local utility companies. This is just the beginning for San Giovanni and similar neighborhoods. The move towards increasing households’ connection to solar power will allow more families to improve their quality of life.
– Zyairah White
Photo: Flickr
4 Facts About Maternal Health in Nepal
4 Facts About Maternal Health in Nepal
As maternal health in Nepal becomes more of a focus in the healthcare system, there are certain policies and programs that must be expanded upon. Midwifery education and access to services are the most important programs for successful maternal health in Nepal. Many experts in the field continue to push for individual programs that focus primarily on methods for successful midwifery education and overall increased care for maternal health in Nepal.
– Ashleigh Litcofsky
Photo: Flickr