Extended hyperinflation continues to cripple Venezuela’s economy with prices of basic groceries skyrocketing to five times the monthly minimum wage from 2015 to 2017. Estimates determined that extreme poverty in Venezuela in 2016 was 82 percent. Yet, there is a shimmer of light with potential economic growth through Venezuela’s rum industry.
Fall in Whiskey Sales
For a long time, people have seen Scotch as a status symbol in Venezuela and often only for the upper-class to enjoy at home or for middle-class friends to have on a night out. In 2007, Venezuelans consumed over three million boxes of whiskey, fifth in consumption worldwide and priced at nearly $151 million in imports. In 2009, imported Scotch whiskey outsold Venezuela’s rum sales nearly two to one.
However, with hyperinflation setting in, reaching over 60,000 percent in 2018 and almost 350,000 percent in 2019, imports experienced restriction and the tightening of currency controls, putting whiskey out of reach for many. At the black market rate, a bottle of Chivas Regal 18-Year-Old Whiskey costs $31, more than the country’s monthly minimum wage.
Rise in Rum Sales
The popularity of whiskey began declining in 2013, with a 29 percent drop in sales. At this point, the country had only recently crossed the hyperinflation threshold of 50 percent, while Venezuela’s rum sales increased by 22.6 percent. During that same time period, domestic rum production increased from 15.8 million to 21.8 million liters.
In addition to the rising cost of imports, the government’s recent introduction of relaxed regulations and loosening price controls has bolstered domestic rum production. This has led to Santa Teresa, one of Venezuela’s rum distilleries, to become the first in the country to release a public offering in 11 years, selling one million shares on January 24, 2020. With banks hesitant to lend, public offerings provide alternative forms of capital that can allow businesses to grow and become more competitive in the global market.
Project Alcatraz
Project Alcatraz, a recreational rugby initiative, launched as a means of rehabilitation and to serve as a deterrent for gang violence after gang members broke into the grounds of the Santa Teresa rum distillery. Now, Project Alcatraz includes vocational training, psychological counseling and formal education, reaching roughly 2,000 adolescents and a few hundred inmates.
Additionally, experts believe that the project has led to a drop in the murder rate of the local municipality. In 2003, the year the project originated, there were 114 murders per 100,000 people; as of 2016, that number had dropped to 13 per 100,000 people.
Cocuy
Venezuelan rum has not been the only liquor that has seen recent success in the country. Cocuy is a liquor similar to that of Mexican tequila because it comprises of fermented agave plants. Cocuy has a long history in the country, with indigenous groups originally making it 500 years ago. The country reportedly outlawed the drink prior to 2006 to boost Venezuela’s rum and beer production and sales. Cocuy production companies regained licensure, resulting in the drink gaining popularity throughout the years. This once stigmatized drink meant for the poor and less refined is now one of choice primarily because of its low price point.
While the rise in domestic liquor sales may be seemingly insignificant, the growth of any domestic industry can play a critical role in the reversal of the economic climate of an impoverished nation. Venezuela’s rum revolution in the past decade could turn the country’s economy around.
– Scott Boyce
Photo: Pixabay
Improving Water and Sanitation in Malaysia
Malaysia is one of many developing countries on the rise out of poverty and into wealth and prosperity. Like many developing countries, Malaysia had to make adjustments to its way of life. One of those changes was improving access to clean water and hygienic sanitation. Today, improvements to water and sanitation in Malaysia have made the country a model for other developing countries working to ensure stable and healthy livelihoods.
Improvements to Water and Sanitation in Malaysia
Malaysia’s efforts to provide access to clean water and pipe systems can be seen in data that has been collected. According to The World Health Organization/UNICEF Joint Monitoring Program, reports taken in 2015 show that approximately 92 percent of Malaysian people have access to properly managed water supplies and 82 percent have access to hygienic sanitation services. Compared to other developing countries, these numbers are better than expected.
To tackle issues in clean water and sanitation access, Malaysia joined Vision 2020 in 1991 under Prime Minister Mahathir Mohamad, setting out with a goal to reach developed country status by the year 2020. In addition to solving Malaysia’s water and sanitation issues, the agreement set out to address many other issues as well, including climate change, societal division, financial challenges and needed improvements in technological advancements.
World Water Vision
Under Vision 2020 is the World Water Vision process, which was established by the World Water Council. The World Water Council is an international water policy think-tank co-sponsored by the Food and Agriculture Organization, the World Health Organization, the World Meteorological Organization, the World Bank and several United Nations programs. The global project set out to implement extensive consultation and to incorporate innovative ideas in the creation of future technology to ensure water access for all.
On a more national level is the Malaysian Water Visioning process. Supported by the Malaysian Water Partnership and the Malaysian National Committee for Irrigation and Drainage, it carried out consultations to determine the proper distribution of water for food and rural development at the national and regional levels. It also implemented extensive water sector mapping and studies on gender disparities pertaining to water access and control.
Case Study: Orang Asli Communities
Although water and sanitation access has improved tenfold, some important groups are still in need of aid. These groups include the poor, immigrant families and people living in secluded rural areas.
To better understand the problem, a case study was done on the Orang Asli communities of indigenous people. Compared to other parts of Malaysia, their health issues are worse than average, infant mortality was double the national figure and parasitic infections were as high as up to 90 percent in certain communities. Most of these issues, if not all, were largely due to poor access to clean water and sanitation.
The Orang Asli and the Global Peace Foundation worked together to create the Communities Unite for Purewater (CUP). This came after carrying out extensive interviews, workshops and other interventions. CUP combats poor water and sanitation access through the installation of water filters and pumps.
As a result, Orang Asli people no longer have to travel miles to get clean water. The new water pumps draw water from wells and transport it into filtered water storage tanks. These are then distributed to each household through a pipe system. The Orang Asli people have stated that this significant change has made their lives much easier. There are also now less prone to diarrhea and fevers.
Moving Forward
Malaysia has come a long way to improve its water and sanitation systems, making it one of the most promising developing countries in the world today. Malaysia has used many innovative ideas and tactics to overcome its water and sanitation issues, including creating initiatives through partnerships, promoting education and doing extensive research. One thing Malaysia will have to work on while on its road to success is to pay better attention to poorer groups to ensure that they get access to clean water and sanitation as well. In order to strive for peace, there must be equal and fair treatment for everyone, regardless of social class.
– Lucia Elmi
Photo: Pixabay
An Impoverished Kingdom: Poverty in North Korea
Few places in the world have aroused as much curiosity and suspicion as North Korea. Known as the “hermit kingdom,” the multiple facets of daily life are secret from the rest of the world, but what is little known about the country paints a very poor economic picture. North Korea’s enigmatic persona on the world stage makes any attempt to uncover its true economic standing rather difficult. This could be due to the fact that the nation has not released any statistics to the global community since the 1960s. Also, while the exact numbers regarding North Korea’s economy and poverty in North Korea are a mystery, there is still quite a bit the world knows about its economic progress (or lack thereof) and how it is affecting the quality of life of its citizens.
Poverty in North Korea
Firstly, many know that along with North Korea’s cult of personality style of governance with Kim Jong-un as its poster boy, it keeps a tight grip on all of the business affairs of the country, resulting in a command economy. As a result, the free market is essentially non-existent with the state determining not only which goods people should produce, but also how and at what price to fix them at. According to the Korea Institute for National Unification (KINU), “the standard of living has deteriorated to extreme levels….” Even citizens, not fortunate enough to be part of the political or social elite, do not receive the basic necessities of health care and food security.
The KINU has even estimated that poverty in North Korea extends to about half of North Korea’s population of 24 million.
North Korea’s ironclad grip on its economic and political structures, coupled with its military-centric ideology, makes for a chaotic mix resulting in a struggling population. Even with modest attempts to modernize—including special economic zones, price liberalization and limited transactions with its South Korean neighbor—North Korea still finds itself focused on military and foreign policy. By doing so, it is absorbing much-needed market capital. Also, while North Korea fears that economic liberalization will lead to political and social liberalization, it is unprepared to take the economic risks that its neighbor and ally China has taken to marry its communist politics with a partially free-market economic approach.
Global Scrutiny and Aid
North Korea has faced increased global scrutiny due to its nuclear weapons ambitions, and this has resulted in not only immense political pressure but also crippling economic sanctions. Even with the post-Soviet push for rapid industrialization, North Korea has shown little economic resilience in the face of global disconnection. This has only exacerbated the ripple effect which inevitably leads to its suffering citizens.
Additionally, while the internal systems of the hermit kingdom were not enough to overcome, North Korea finds itself repeatedly on the receiving end of climate change and natural disasters. With alternating and equally devastating periods of both droughts and floods, paired with a government unable to respond, this only aggregates North Korea’s agricultural problems.
It is even suffering its worst drought in four decades, according to its state-run media. With a majority of North Koreans relying on crops and livestock for survival, and with the intensity of irregular weather on the horizon, the country could soon find itself in dire straits that it will be unable to shield from the global community.
Even with the multitude of economic, social and political problems North Korea has in front of it, there are still signs that the global community is willing to help eliminate poverty in North Korea. With China and South Korea right along its borders, North Korea has seen help in the form of aid. South Korea has pledged $8 million for aid. China has been even more generous. In 2012, China gave 240,074 tons of rice, more than 80 times what Europe gave North Korea that same year. These pledges signal that some are offering help to lessen the burden of poverty and struggle for the citizens of North Korea, but there is still more than others can and should do.
– Connor Dobson
Photo: Flickr
A Humanitarian Crisis After the 2010 Haiti Earthquake
The catastrophic earthquake that struck Haiti a decade ago has birthed a very different humanitarian crisis. On January 12, 2010, the 7.0 magnitude earthquake killed over 250,000 people with 300,000 more injured. The 2010 Haiti earthquake was the most destructive natural disaster the region had suffered, displacing over 5 million people and destroying nearly 4,000 schools. The earthquake’s epicenter was at the heart of the metropolitan area in the capital city Port-au-Prince. Ten years later, 4 million people are experiencing severe hunger with 6 million living below the poverty line.
The Root Problem
These consequences led to many social and political setbacks. Before the 2010 earthquake, 70 percent of people lived below the poverty line. Now, a nationwide study indicates that one in three Haitians needs food aid and 55,000 children will face malnutrition in 2020. Despite others allocating $16 billion in aid to the island, the nation has lapsed in food security due to a lack of international investments and funding.
Humanitarian Response
Recurring climate events such as prolonged droughts and Hurricane Matthew, which struck Haiti on October 4, 2016, have resulted in the destruction of agricultural sectors and infrastructure. The hurricane took the lives of an estimated 1,000 people. The island also suffered a cholera epidemic in 2010 that resulted in over 8,000 deaths. Since then, thousands reside in makeshift internal camps—once regarded as temporary housing—without electricity or running water.
World Vision’s relief fund aims to provide essential care to residents through agricultural support, emergency food supplies and medicinal materials. Donations and sponsorship of children alleviate many of the poverty-stricken burdens. After the 2010 earthquake in Haiti, the organization’s unified efforts brought food to over 2 million people. Other international humanitarian organizations have received critical reception over discrepancies in rebuilding efforts and the disbursement of funds.
Political Unrest
Various ambassadors and nations followed with many humanitarian responses and appeals for public donations such as the European Council providing millions of dollars in rehabilitation and reconstruction aid. Frequent political turmoil has curbed humanitarian progress in Haiti. In September 2019, thousands demanded the resignation of President Jovenel Moise over his mismanagement of the economy, which impacted poorer populations the most. For more than 50 years, the World Food Program has attempted to build resilience in the political and economic framework of Haiti through school meals and nutrition, and disaster preparedness. By preparing food before the hurricane season, the program can meet over 300,000 people’s needs. It delivers daily meals to 365,000 children in approximately 1,400 schools across the nation. Other organizations that provide sustainable development projects and emergency relief include CARE, Food for the Poor, Midwest Food Bank and Action Against Hunger, among others.
The humanitarian crisis a decade after the 2010 earthquake in Haiti requires a level of urgency. Millions in Haiti are facing unprecedented levels of severe hunger due to a lack of funding and economic and political stability. International organizations are vital to providing aid and care to these populations, and the world’s growing awareness of this issue is just as important.
– Brittany Adames
Photo: Flickr
3 Solar Energy Developments in Malawi
Solar energy developments in Malawi are helping its local communities maintain sustainable energy. Bwengu Projects Malawi provides teachers in high-needs schools with solar-powered LED projectors in Bwengu, the northern countryside of Malawi. This solar energy initiative partners with local providers and financial institutions to connect new solar farms to the power grid. Additionally, USAID is collaborating with solar power companies to provide solar home systems for homes in Malawi.
3 Solar Energy Developments in Malawi
These three solar power developments in Malawi come at a time when the population is expanding and demand for energy is growing. Cooperating charities, policymakers, national banks and energy providers have successfully powered the developments with support from the government and international community in line with sustainability goals. From these examples, one sees that the educational field has especially benefited from these innovative technologies in spite of historically poor conditions.
– Caleb Cummings
Photo: Flickr
The Rise of Venezuela’s Rum Revolution
Extended hyperinflation continues to cripple Venezuela’s economy with prices of basic groceries skyrocketing to five times the monthly minimum wage from 2015 to 2017. Estimates determined that extreme poverty in Venezuela in 2016 was 82 percent. Yet, there is a shimmer of light with potential economic growth through Venezuela’s rum industry.
Fall in Whiskey Sales
For a long time, people have seen Scotch as a status symbol in Venezuela and often only for the upper-class to enjoy at home or for middle-class friends to have on a night out. In 2007, Venezuelans consumed over three million boxes of whiskey, fifth in consumption worldwide and priced at nearly $151 million in imports. In 2009, imported Scotch whiskey outsold Venezuela’s rum sales nearly two to one.
However, with hyperinflation setting in, reaching over 60,000 percent in 2018 and almost 350,000 percent in 2019, imports experienced restriction and the tightening of currency controls, putting whiskey out of reach for many. At the black market rate, a bottle of Chivas Regal 18-Year-Old Whiskey costs $31, more than the country’s monthly minimum wage.
Rise in Rum Sales
The popularity of whiskey began declining in 2013, with a 29 percent drop in sales. At this point, the country had only recently crossed the hyperinflation threshold of 50 percent, while Venezuela’s rum sales increased by 22.6 percent. During that same time period, domestic rum production increased from 15.8 million to 21.8 million liters.
In addition to the rising cost of imports, the government’s recent introduction of relaxed regulations and loosening price controls has bolstered domestic rum production. This has led to Santa Teresa, one of Venezuela’s rum distilleries, to become the first in the country to release a public offering in 11 years, selling one million shares on January 24, 2020. With banks hesitant to lend, public offerings provide alternative forms of capital that can allow businesses to grow and become more competitive in the global market.
Project Alcatraz
Project Alcatraz, a recreational rugby initiative, launched as a means of rehabilitation and to serve as a deterrent for gang violence after gang members broke into the grounds of the Santa Teresa rum distillery. Now, Project Alcatraz includes vocational training, psychological counseling and formal education, reaching roughly 2,000 adolescents and a few hundred inmates.
Additionally, experts believe that the project has led to a drop in the murder rate of the local municipality. In 2003, the year the project originated, there were 114 murders per 100,000 people; as of 2016, that number had dropped to 13 per 100,000 people.
Cocuy
Venezuelan rum has not been the only liquor that has seen recent success in the country. Cocuy is a liquor similar to that of Mexican tequila because it comprises of fermented agave plants. Cocuy has a long history in the country, with indigenous groups originally making it 500 years ago. The country reportedly outlawed the drink prior to 2006 to boost Venezuela’s rum and beer production and sales. Cocuy production companies regained licensure, resulting in the drink gaining popularity throughout the years. This once stigmatized drink meant for the poor and less refined is now one of choice primarily because of its low price point.
While the rise in domestic liquor sales may be seemingly insignificant, the growth of any domestic industry can play a critical role in the reversal of the economic climate of an impoverished nation. Venezuela’s rum revolution in the past decade could turn the country’s economy around.
– Scott Boyce
Photo: Pixabay
How Music Helps Impoverished Youth
For many cultures, music is a primary form of expression. It serves as an outlet for struggles with identity, relationships, politics and even poverty. Since music encapsulates various elements of a culture, it is essential for heritage preservation and for spreading awareness about the adversity that the respective cultures face. Music is a universal language, capable of reaching out and touching the hearts of any listener. This includes children, who are extremely receptive to music and are capable of learning of its benefits and values. Here are five examples that show how music helps impoverished youth cope with their experiences and spread awareness of the world’s poor.
5 Examples of Music Helping Impoverished Youth
Music has the power to preserve generations of cultural value. It can also spark interest and motivation in the minds of impoverished youth. These stories demonstrate the potential music has to raise awareness for issues such as sex slavery and poverty. Since music is directly tied to heritage and tradition, it can bring about major social change without eliminating the cultural identity of a society. These five examples of how music helps impoverished youth serve as proof that something as simple as the beat of a drum can contribute to the fight against global poverty, one tap at a time.
– Harley Goebel
Photo: Flickr
Addressing Homelessness in South Korea
It is easy to dismiss homelessness in South Korea, as the nation ranks as one of the top 20 economies in the world. High-tech society can overshadow the unfortunate reality that many of the homeless face in South Korea. In 2017, the South Korean government estimated that there were more than 11,000 homeless people in South Korea. This is not a surprise to many South Korean. When walking in Seoul for an extended amount of time, it is common to come across the homeless.
Factors that Contribute to Homelessness
Government Efforts to Reduce Homelessness
The South Korean government is making positive steps toward reducing homelessness in South Korea. In Seoul, the homelessness problem is still easy to spot; however, the homeless population is in a steady decline. A 2017 assessment by the Seoul government found that there had been a 30 percent decrease in the homeless population in Seoul since 2010.
South Korea’s commitment to supporting the homeless is also very public. With the election of President Moon Jae In, the Ministry of Welfare announced an expansion to assisting the homeless. The South Korean government pledged to increase the supply of housing for the homeless, creating jobs and providing job training programs for the homeless.
Currently, the city of Seoul is running an outreach program. Simin Chatdongi or “People Visiting Their Neighbors” is a program that encourages citizens to alert the authorities about their neighbors who might be on the verge of becoming homeless. Citizens who want to participate can sign up for the outreach program online or visiting a program booth at a residents’ assembly or neighborhood festival. As of Dec. 2019, the program gathered 8,563 reports.
Homelessness in South Korea is caused by many factors, including the housing index, financial bankruptcy and alcoholism. However, the South Korean government’s commitment to helping its less-fortunate populace leaves a silver lining to this otherwise bleak reality. Many in South Korea look forward to the positive changes that are to come for the homeless.
– YongJin Yi
Photo: Flickr
10 facts about Sanitation in The Bahamas
The Bahamas is still recovering from the aftermath of Hurricane Dorian, which greatly injured two of the countries’ islands in late 2019. However, the residents are facing a bigger challenge involving access to clean water and toilets, which is putting them at great risk of a major public health emergency. Here are 10 facts about sanitation in The Bahamas.
10 Facts About Sanitation in The Bahamas
While Dorian impacted sanitation in The Bahamas in late 2019, the challenges for clean, accessible water continues to affect Bahamians today. With continued investment in tourism and the involvement of relief organizations, The Bahamas should hopefully recover soon.
– Merlina San Nicolás
Photo: Pixabay
Bolivia’s Poverty Reduction and Economic Growth
Bolivia is a South American country that continues to reduce its high poverty rate. Poverty lowered substantially from 66 percent in 2000 to 35 percent in 2018. The government of Bolivia took direct action to develop its economy, reduce its poverty and income inequality and increase foreign investment. The Latin American country still has a high poverty rate, yet its progress in the past 20 years shows promise that Bolivia’s poverty reduction and economic development will continue.
Government’s Direct Involvement in Poverty Reduction
The Bolivian government approved the National Economic and Social Development Plan 2016-2020 to bring about change in its country. Former President Evo Morales fought for income equality and higher wages as Bolivia’s president, and the country is still fighting for his goals. The country intends to help its people live a prosperous life without worrying about the effects of poverty, such as hunger and an inability to afford health care. The main objectives of the plan include eliminating extreme poverty, granting basic services to the entire population and diversifying its economy. The plan set forth a continuation of Bolivia’s poverty reduction progress since 2000 while also lowering income inequality.
Poverty Reduction Through Economic Growth
Economic growth is another factor that helped with Bolivia’s poverty reduction efforts. Bolivia’s GDP growth hovered around 4 percent since the early 2000s. From 2000 to 2012, Bolivia increased its exports that consisted mainly of minerals and hydrocarbons. Although hydrocarbons grew controversial in Bolivia, hydrocarbons and minerals accounted for 81 percent of all exports in 2014. In 2000, its exports accounted for only 18 percent of GDP, yet exports grew to 47 percent in 2012. Bolivia’s decision to focus on exports helped grow its economy, add jobs and reduce income inequality. In time, Bolivia may transition to cleaner sources of energy for its future.
Economic growth led to wage increases for many Bolivians, which expressed the idea of poverty reduction through economic growth. Bolivia’s GDP grew by a massive 80 percent from 2000 to 2014, and there were various positive side effects of this growth. Salaries increased after the government took direct involvement in income inequality. The real minimum wage increased by 122 percent in the years 2000-2015. The average labor income also increased by 36 percent during 2000-2013.
Bolivia’s Progress in Income Inequality and Economic Development
– Lucas Schmidt
Photo: Flickr
5 New Technologies in Latin America
5 New Technologies in Latin America
These five new technologies in Latin America are but a few examples of the region’s ongoing tech boom. Latin America’s rapidly growing middle class offers entrepreneurs a consumer base for their products. Digital transformation is well underway. Internet penetration rests at 57 percent, but 70 percent of citizens subscribe to mobile plans. On average, Latin Americans log on to the internet for longer lengths of time than anyone else in the world. The next Silicon Valley may well rest south of the border.
– Dan Zamarelli
Photo: Newsroom