• Link to X
  • Link to Facebook
  • Link to Instagram
  • Link to TikTok
  • Link to Youtube
  • About
    • About Us
      • President
      • Board of Directors
      • Board of Advisors
      • Financials
      • Our Methodology
      • Success Tracker
      • Contact
  • Act Now
    • 30 Ways to Help
      • Email Congress
      • Call Congress
      • Volunteer
      • Courses & Certificates
      • Be a Donor
    • Internships
      • In-Office Internships
      • Remote Internships
    • Legislation
      • Politics 101
  • The Blog
  • The Podcast
  • Magazine
  • Donate
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu
Global Poverty, Poverty Reduction

Top 10 Facts About Poverty in Hong Kong


Hong Kong is one of the most densely populated and financially significant regions on Earth, but it also has a massive issue with income inequality. Roughly one-fifth of Hong Kong’s residents are living in poverty as of November 2018, with monthly income for those people falling below the poverty line equaling $700 a month. The average cost of living for a 900 square foot apartment plus utilities in a normal area for two equals $3,885 a month. In the text below, the top 10 facts about poverty in Hong Kong are presented.

Top 10 Facts About Poverty in Hong Kong

  1. The population is aging. With 7.4 million residents, Hong Kong is home to many people of older generations. The combination of changing technologies and markets has impacted those who served in more blue-collar jobs in years past. This has a dramatic effect on how they are able to pay for housing, food and basic necessities when white collar jobs are taking over the city. The government has provided handouts that have helped many in poverty, but what truly needs to be done is proper job reeducation and reassignment.
  2. Cohabitating with elderly parents is becoming necessary. As many young adults seek to explore their career paths and the vast megalopolis of the Pearl River Delta, they realize they don’t have the means to expand. In order to keep parents from falling below the poverty line and to give their future children exceptional opportunities, many young couples are forced to stay with their parents. However, this is only a temporary solution to the long-term issue of how to deal with economic struggles. Thankfully, the local and national governments are considering how to reengage the elderly through the use of their accumulated knowledge.
  3. Monthly rent is 70 percent of the median household income for half of Hong Kong. With the average monthly income of those below the poverty line not reaching the 70 percent statistic to pay for livable housing, a dark housing market has appeared. Illegal housing has entered roughly one in four structures in Hong Kong. In order to combat the rise of illegal housing and unlivable structures, the government of China must provide affordable and government subsidized housing rather than solely catering to the wealthy.
  4. Wages have not risen to meet the rise in housing cost. The average unskilled worker has to work 12-hours per day to afford a 100 square foot coffin home. In order to meet the needs of its citizens, Hong Kong must increase welfare payments in the form of Comprehensive Social Security Assistance (CSSA). CSSA must become more than just a safety net for basic needs and should fully encompass the needs of those in poverty in Hong Kong through food assistance and other means.
  5. Women are disproportionately affected by poverty. China has historically undervalued women. The one-child policy preferred boys and illegal sex-selective abortions were utilized. Hong Kong’s 2017 census stated that roughly 451,700 women fell below the poverty line, where only 80,800 men did. In order to fully engage society and bring skilled workers into the workforce, education and protections must be put in place for women and young girls.
  6. The poor are unfairly stigmatized. Those in poverty in Hong Kong are seen as being lazy for the position they’ve fallen into. This attitude speaks to a larger ambivalent attitude towards meaning and wealth in Hong Kong, as status and titles have unfortunately taken over humility and humanity. In order to combat this harsh attitude, people of Hong Kong must embrace the people in their society that make them uncomfortable.
  7. Cyber cafes have become havens for the poor. Hong Kongers who fall below the poverty line and cannot afford to house have taken to spending their days and nights at cyber cafes. For a low cost of entry, cyber cafes provide shelter and internet access between jobs for the poor.
  8. Hong Kong’s bureaucracy is one of the causes of the problem. The issues the homeless face could be solved, but government division has slowed progress. Separate departments cover similar issues but have no central governing body. Experts suggest that examples from New York’s consolidated Department of Homeless Services should be followed.
  9. Nongovernmental organizations could help Hong Kong. Government leasing of properties occurs in Hong Kong but leasing from nongovernmental organizations could greatly assist those in need. Government support of organizations who control these properties would allow for the poor and homeless to be taken care of effectively by trained professionals.
  10. The wealth distribution is uneven. The top 10 percent in Hong Kong earn roughly 44 times more than the lowest 10 percent who fall far below the top monthly earnings. This income divide is further pushed by wealthy business interests who influence politicians. This directly damages the ability of the poor and homeless to receive any assistance.

While poverty is a massive issue in Hong Kong, individuals and governing bodies can no longer turn a blind eye. For the sake of those in need, the country and its politicians must take notice of the damaged parts of their society, as it is shown in these top 10 facts about poverty in Hong Kong.

– Zach Margolis

Photo: Flickr

March 13, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-13 19:30:552024-05-29 22:58:32Top 10 Facts About Poverty in Hong Kong
Global Poverty

Top 10 Facts About Living Conditions in Cyprus

Top 10 Facts About Living Conditions in Cyprus
Cyprus, a Mediterranean island with a population of 1.2 million, has endured several different occupations by major powers since the birth of the civilization. Beginning with the Assyrian, Egyptian, Persian and Roman Empires, Cyprus was then taken by the French Venetians and then the Ottoman Empire (from 1571 to 1878). The United Kingdom was the last imperial body to control Cyprus, from which Cyprus gained independence in 1960. In the article below, the top 10 facts about living conditions will be presented and will try to show how the people in this country live and what impacts their lives.

Top 10 Facts About Living Conditions in Cyprus

  1. Since 1974, Cyprus has been politically and ethnically divided into two territories- Northern and Southern Cyprus. Northern Cyprus is a de facto state of Turkey and populated primarily by Turkish Cypriots, while Southern Cyprus governs itself and is populated primarily by Grecian Cypriots. While Turkey recognizes Northern Cyprus as a Turkish territory, the rest of the world considers Northern Cyprus a part of the Republic of Cyprus, along with Southern Cyprus. Both Greek and Turkey are official languages in Cyprus. This division mostly impacts people in the country and reunification talks have been held in order to improve the situation.
  2. Cyprus joined the European Union (EU) in 2004 and has benefited politically and economically since its admission. Living conditions in Cyprus improved as the nation gained access to European treaties and European Union law to resolve internal unrest, and also the increased security that comes with EU membership. Today, more than half of Cyprus’ trade happens within the EU, expanding its markets farther and with more ease than that would be possible without the membership status.
  3. Cyprus has one of the fastest growing economies in the European Union despite the economic crisis of 2013. The nation’s economy grew 3.9 percent in 2017 and is predicted to continue growing in 2019 in the wake of expanding employment and a flourishing tourism industry.
  4. Poverty in Cyprus is notoriously hard to track, but it is presumed that the number of people at risk of poverty has been steadily decreasing over the last few years, starting from 28.9 percent in 2015, 27.6 percent in 2016 and to 25.2 percent in 2017. Improvement in poverty rates is largely due to continued economic growth, coupled with a rise in income in the nation.
  5. Along with a reduction in poverty, unemployment rates continue to fall in Cyprus. From about 15 percent in 2015, the unemployment rate fell to 13 percent in 2016 and further to 11 percent in 2017. In 2018, the unemployment rate fell to 8.2 percent, among the lowest in the EU.
  6. Global Finance Magazine ranked Cyprus 32nd in its 2019 list of the world’s safest countries. This ranks the country higher than the United Kingdom (38th), Japan (43rd) and the United States (65th).
  7. Education completion rates in Cyprus have been maintained at high rates. School completion rates hover between 97 and 98 percent, except for the year Cyprus divided in 1974 when the education completion rate was 64 percent. The political and social unease of this time is to blame for this dip in education completion rates, as the number went right back up the following year.
  8. Matching its high education completion rates, Cyprus’ literacy rate sits at around 99 percent, ranking the country among the best in the world regarding this issue.
  9. The life expectancy in Cyprus is around 80.5 years, which is comparable to neighboring countries Malta (81.8 years) and Greece (81.04 years). This rate is higher than the one in the United States (78.69 years).
  10. Health care in Cyprus is comparable to health systems in other developed nations. Split into public and private sectors, health care in Cyprus is generally free or very inexpensive for citizens and persons from EU nations. Emergency treatment is free for citizens, and EU nationals are eligible for free health insurance at public hospitals, which are located in all major cities.

While living conditions in Cyprus are already good, life in the nation could be improved by the reunification of the North and South. By some estimates, reunification could improve Cyprus’ GDP by as much as $5.7 billion in only five years, as Southern Cyprus would be less vulnerable to the economic problems of Greece and also gain access to Turkish markets. If the two territories gain free access to each other, the economy will benefit as a whole, improving further the Cypriotic economy and living conditions in Cyprus as a whole.

– Jillian Baxter
Photo: Flickr
March 13, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-13 13:30:332024-12-13 18:01:45Top 10 Facts About Living Conditions in Cyprus
Global Poverty

Importance of Microfinance & Social Entrepreneurship in Guyana

Guyana microfinance, social entrepreneurship
Guyana is a small South American nation with a population just over 700,000. The country is sparsely populated, with the majority of the population identifying as East-Indian or Afro-Guyanese. According to the World Bank, Guyana is an upper/middle-income country, with a GDP of around $3.6 billion. Guyana’s economy is primarily agricultural, with over 60 percent being comprised of six main exports: sugar, shrimp, gold, bauxite, rice and timber. One way to improve the economy, though, could be through increased levels of entrepreneurship in Guyana.

Guyanese Economic Growth Status

Recently, the fractured Guyanese government fell in a no-confidence vote, endangering already fragile race relations. Economic growth has slowed in the past five years, one-third of the population lives below the poverty line and youth unemployment stands at a staggering 21.6 percent. Many Guyanese agricultural enterprises lack credit history and find it difficult to use livestock as collateral on secured loans, making for higher credit risk.

In addition, over 80 percent of Guyanese citizens with tertiary education reside abroad. The emigration of highly educated citizens may pose another threat, as economic growth is often predicated on national education levels. These underlying issues have contributed to distressingly high youth poverty levels. How can the English-speaking South American country alleviate poverty and unemployment? The answer may lie in microfinance and social entrepreneurship.

Microfinance and Social Entrepreneurship in Guyana

In Guyana, there are several privatized financial institutions focused on micro-loans and credit access for the nation’s underbanked. These institutions are characterized as microfinance institutions, and help to provide banking and financial literacy instruction to people and small businesses who would otherwise not receive such support. The main source of income for these institutions comes from interest payments on loans. This financial support is critical for diminishing poverty and improving social mobility.

Microfinance can be significantly expanded among the young people of Guyana. The Institute of Private Enterprise Development (IPED) and the Small Business Development Finance Trust (SBDFT) are two main microfinance organizations and the primary contributors to Guyana’s microfinance sector. As of 2016, the IPED dispersed micro-loans to over 4,500 small businesses — of which only 12 percent of these borrowers were young adults.

This low proportion of youth borrowing could be significantly expanded, as roughly 46 percent of the population in Guyana is under 24 years old. Microfinance efforts have been largely successful in other parts of the world. India’s Range De has successfully reached over 18 Indian states with a 93 percent repayment rate, collateral-free.

Potential for Social Entrepreneurship

Another key element to alleviating poverty in Guyana is expanding social entrepreneurship. According to a Duke University newsletter, social entrepreneurs are defined as business innovators that “play the role of change agents in the social sector.” Focusing loan and microfinance efforts on young entrepreneurs with a social focus will help to decrease youth unemployment rates while simultaneously lowering overall poverty.

Not only would educated citizens choose to remain in Guyana, but lucrative business prospects may attract non-natives to the country. Incubators and credit advisory services are two financial inclusion tactics that have taken root in Africa and South Asia. Tiwale, a Malawi-based startup focused on empowering female education, serves as an excellent role-model for similar enterprises in Guyana. These market-based solutions would help to alleviate poverty and simultaneously stimulate the economy.

Spurring Progress

Credit access and social enterprise efforts have already begun to transpire within the nation. IPED’s recent expansion will help to spur financial access for Guyana’s underbanked. Technological growth and introduction in Guyana will also augment social enterprises and allow for increased scalability. If the microfinance and social entrepreneurship sectors are able to flourish in Guyana, there is a bright future for the nation’s youth.

– Alexander Aguilera
Photo: Flickr

March 13, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-13 07:30:592024-05-29 22:58:15Importance of Microfinance & Social Entrepreneurship in Guyana
Global Poverty

Credit Access in Mauritius

Credit Access in Mauritius
Mauritius, the island nation in the Indian Ocean, has undergone a financial transformation since the early 2000s, promoted by the government in order to catalyze the economy of the country. This has impacted credit access in Mauritius in a big way. Since 2000, the country has experienced losses connected to its truncated access to EU sugar and textile markets and is facing steeper competition from China and other East Asian exports.

Mauritius Economy Compared to Other Countries

This loss of preferential treatment and high budget deficit spells a slight struggle for Mauritius to retain its middle-income standing. Currently, the country ranks 65th in the world on the Human Development Index, and in 2014, it was the second highest country in Africa on the development list. Mauritius’ Gross National Income (GNI) per capita is at $9,770 and the Organization for Economic Cooperation and Development (OECD) reports that the country performs better than the average compared with other sub-Saharan African and middle-income countries as far as information ability, involvement of the trade community, advance rulings, appeal procedures and internal border agency cooperation.

By continuing to focus on the area of governance and impartiality, Mauritius can increase its trade volumes and lower trade costs. A strengthened customs system and transparent ethics policy could be the final stretch to reach the Prime Minister’s dream of a high-income country.

Government Initiatives

The Prime Minister of Mauritius, Pravind Jugnauth, has predicted a revamping of the economy and expresses hope for Mauritius moving into the future. Key reforms introduced in the 2018/2019 budget helped bring Mauritius its present position. The Minister also touched on the government’s dedication to raising the country to high-income level country, thereby funneling benefits to every citizen. Already this commitment can be seen in the growth of Gross Domestic Product (GDP) and financial services, estimated to continue at 4.1 percent in 2019.

The government introduced changes to the legislative system in order to prevent money laundering and corrupt business. In his speech, the Prime Minister assured that the country is conducting a national risk assessment of terrorism financing.

Credit Access in Mauritius

A report from the Global Findex as of 2017 records 68.5 percent of Mauritians making or receiving digital payments, as well as 48.3 percent using credit or debit cards. The percentage of adults above the age of 15 who borrowed from a financial institution in Mauritius was at 22.9 percent, much higher than the sub-Saharan average of 8.4 percent, in comparison. Outstanding housing loans are increasing in availability as well, and almost 90 percent of adults were able to obtain access to financial institution accounts, banks or otherwise.

Enjoying past growth of upwards of 6 percent in the 1990s and continued economic performance, Mauritius is still dealing with the changes in the EU Sugar Protocol and falling sugar prices. As of 2006, the government incentivized seafood production in order to shift toward exporting fish instead of sugar, as well as a list of Integrated Resort Schemes offering luxury villas to foreigners. Diversifying the market and leveling the competition will surely launch Mauritius ahead in the economic playing field. The GDP by sector reveals the sugar sector operates at a modest 4.3 percent in 2007, led by government services at 15 percent, wholesale at 11, finance and real estate at 14.2 and many other diverse trade sectors.

Unfortunately, drastic adjustments meant one-third of employees for the sugar sector were redundant. The lost sugar income has still not been completely replaced, but the government is focused on diversification and increasing exports in the coming years.

In addition to experiencing an incredible 195 percent wealth growth from 2007 to 2017, credit access in Mauritius continues to increase due to strong ownership rights, a resilient economy, and ease of investment. Hopefully, the country’s example spearheads a movement throughout Asia for easier credit access and stable banks and economy.

– Hannah Peterson
Photo: Flickr

March 13, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-13 01:30:422024-05-29 22:58:24Credit Access in Mauritius
Global Poverty

John Coonrod Empowers Poor People to Lift Themselves Out of Poverty

John Coonrod Empowers Poor People
John Coonrod is the Executive Vice President of The Hunger Project — a non-profit organization that helps give poor people the means to lift themselves out of poverty. As part of this organization’s leadership, John Coonrod empowers poor people to lift themselves out of poverty by placing special emphasis on female farmers, who are among the poorest people in the world.

Origins

Coonrod has been advocating for social justice for a very long time. While he was training as a physicist at Stanford and the University of California-Berkeley, he was an active member of local civil rights and anti-war movements. When The Hunger Project was first founded in March of 1977, John Coonrod was its first volunteer and he continued to volunteer while he worked at Princeton University from 1978 to 1984.

In 1985, he became an official member of The Hunger Project’s staff. In addition to meeting his future wife while working at The Hunger Project, Coonrod used — and still uses — his expertise to help poor people in developing countries. To this day, John Coonrod empowers poor people to lift themselves out of poverty.

The Hunger Project

The Hunger Project is a non-profit organization that seeks to end poverty and world hunger by pioneering grassroots movements. While it believes that everyone should be free of poverty and hunger, they place a special focus on women and gender equality. The reason for this is that women are typically in charge of meeting a family’s needs, but are often denied the means and resources to do so by their society.

The Hunger Project currently works with organizations in 11 countries: Benin, Burkina Faso, Ethiopia, Ghana, Malawi, Mozambique, Senegal, Uganda, Bangladesh, India and Mexico. Between these countries, they have helped more than 85 organizations start 2,900 projects. In addition, they have chapters and investors in Australia, the U.S., Canada, Japan, Germany, the Netherlands, Sweden, Peru, Switzerland and the U.K.

In all of the countries where they work, The Hunger Project seeks to empower women, mobilize communities and engage local governments. In India, for example, their main focus is on helping women get elected into local governments. The organization has done this in nearly 2,000 panchayants (clusters of villages) across 6 states, and the women they have helped now lead 9 million people.

In Africa, The Hunger Project helps turn clusters of villages into epicenters where up to 15,000 people can band together to help their communities thrive. These epicenters, in turn, create their own development programs, which reach more than 1.6 million people across the continent. In Bangladesh, local volunteers, especially women and children, are mobilized to reach 185 sustainable development goals in their communities, reaching 5 million people. Finally, in Mexico, community development focuses on indigenous women and children, helping to improve childhood and maternal nutrition; this admirable work reaches 21,000 people.

Partners A-Plenty

The Hunger Project has numerous partners in the countries where they work. One of these partners is Rotary International, a global organization in which 1.2 million people work in sustainable projects to improve life in general across the globe. This includes fighting diseases, providing water, supporting educations, saving mothers and children, growing local economies and promoting peace. The Hunger Project mainly works with Rotary International in Ethiopia, where Rotary International uses vocational training to teach doctors how to resuscitate newborns.

In India, SKL International is a major partner of The Hunger Project. SKL International is a Swedish organization that uses the model of Sweden’s extensive local governments as a baseline to help developing countries achieve democracy. Like The Hunger Project, SKL International’s main goal in India is getting local women elected.

In Mexico, The Hunger Project works with Water For Humans — a non-profit organization that uses sustainable technology to bring clean water to those who need it, especially in Mexico. The organization is currently working on helping indigenous people build eco-cookstoves which require less wood than traditional stoves, need only one fire to work in multiple burners at once, and keeps coffee warm every day — as is culturally preferred.

Local Empowerment

All in all, John Coonrod empowers poor people to lift themselves out of poverty by helping to create and promote local movements, especially women-centric movements, that promote community welfare and engage with local governments. By working with several partners in various countries around the world, John Coonrod and The Hunger Project make lives better for women and other people across the globe.

– Cassie Parvaz
Photo: Flickr

March 13, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-13 01:30:342024-05-29 22:58:17John Coonrod Empowers Poor People to Lift Themselves Out of Poverty
Food Security, Global Poverty

Sustainable Agriculture in Senegal

agriculture in Senegal
The story of sustainable agriculture in Senegal is one of success that should be used as a guide for other countries. Between 1960 and the early 1980s, Senegal used monocropping, a dangerous practice where only one crop is grown year after year, leaching more and more nutrients from the ground. This eventually left the soil void of essential nutrients. When the area was hit by drought in the early 1980s, the land was unable to cope, and the country suffered from food shortages. However, over the last 20 years, Senegal has been using sustainable agriculture to bring back fertility to the soil.

In 1989, the United States government began working with Rodale International to come up with a plan to restore the soil. The plan was to use crop rotation. Every three years, one of four different plants would be sown in the soil. Each plant would only take certain nutrients from the ground and replace others. One of these plants was peanuts, the plant that caused the problem in the first place, and the second was millet. Both are now the main agricultural exports of Senegal. The other two crops in rotation are cowpeas and cassava.

The International Production and Pest Management Program

The United States and international companies are not the only organizations helping improve sustainable agriculture in Senegal. Senegal has been part of the Food and Agriculture Organization of the United Nations (FAO) IPPM program since 2001. The IPPM (Integrated Production and Pest Management Program) is dedicated to responsible pest control practices. The program touches on many points to control pests; however, its most important lesson is the responsible use of pesticides.

Pesticides remain a continuous problem in Senegal and most of the world due to their overuse. Pesticides stay in the water table, contaminating drinking water. They also hurt the soil since the chemicals build up over time and stay on the crops. When consumed pesticides are harmful to humans and animals. This is not to say that they are not sometimes necessary, but the IPPM suggests a less-is-more approach.

Syngenta

Private foundations are also doing their part. Syngenta, a Swiss-based based agricultural firm, has a foundation called the Syngenta Foundation for Sustainable Agriculture. The foundation works with public and private sector partners in order to finance innovations in sustainable agriculture. They also work with the World Bank, USAID and both the Swiss and Australian governments.

Since 2014, Syngenta has been promoting sustainable agriculture in Senegal’s rice production. In 2015, the organization began helping farmers gain access to better-mechanized equipment to facilitate rice cultivation in the Senegal River Valley. The overall approach of the Syngenta Foundation for Sustainable Agriculture is to work with the entire system. The work with NGO’s and governments to help small farmers become more productive has helped to increase the economic benefit of sustainable farming practices. It also helps the farmers better feed themselves and their families.

Improving the Economy Through Sustainable Agriculture

The soil is becoming productive again, and farmers are gaining access to better techniques and equipment. However, the fight is not over. Senegal suffers from an unemployment rate of 47 percent. In 2017, the agricultural industry employed 77 percent of the population in Senegal, an estimated 6.9 million people. However, the agriculture industry only makes up only about 17 percent of the of the country’s GDP. The next step to better economic stability will be to tackle these issues. Hopefully, like its soil, the Senegalese economy will now rejuvenate and grow for all.

– Nicholas Anthony DeMarco
Photo: Flickr

March 12, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-12 01:30:432024-05-24 23:55:23Sustainable Agriculture in Senegal
Global Poverty

Purchasing Power Parity: The Russian Ruble vs. The American Dollar

The Russian Ruble vs. The American Dollar
There is a commonly understood equation that all world travelers parse out during their adventures to foreign countries: “How much will (x) of my currency buy (y) of their currency?” If an American travels to any of the 27 European nations, they will need to exchange a large portion of U.S. dollars into the EU’s respective currency, the Euro (€). Similarly, if Russians travel to the United States, they will need to buy American dollars ($) with their Russian Rubles (₽).

Purchasing Power Parity

The relative worth of one holder’s currency pegged to another’s in consideration of the purchase of the same basket of goods and services is referred to among economists as the purchasing power parity (PPP). The parity is a theory that suggests “exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries” (University of British Colombia School of Business).

The basis of PPP is the law of one price across nations; however, in the world of global economies and integrated wealth and trade, $10 spent in Russia gets one more goods and services than $10 spent in the United States. This is the economic disparity that leaves Russian consumers worse off in both their own country and the U.S.A.

Experimental Practicality

In order to better understand the purchasing power parity and how it adversely affects the Russian middle class, the following example will better illustrate its practicality:

Consider the two experimental countries, Russia and the U.S. A tall-sized latte from Starbucks costs approximately 255 ₽ or an American equivalent of $4.50; however, in the U.S., an identical product costs $2.95. The PPP between Russian and the U.S.A. for a tall-sized latte from Starbucks is the price paid in Russia in U.S. dollars ($4.50) divided by the price paid in the United States in U.S. dollars ($2.95).

Simple arithmetic leads to the conclusion that for this item, the PPP between Russia and the U.S. is approximately 1.52, which means the consumers pay $1.52 to make a purchase in Russia that would cost $1.00 in the United States. Alternatively, Russian consumers are using their weaker national currency to pay a 50 percent premium on a tall-sized latte from Starbucks. Apply this to the purchase of a flat, college education or vehicle, and the numbers and basic economic principle alone illustrates how worse-off the Russian middle class is than that of its western counterpart.

Poverty in Russia

The PPP between Russia and the U.S. and any other first-world country is relevant to the overarching issue of poverty in Russia because of relative wealth distribution and purchasing power. Russia’s geography necessitates a strong import business relationship with the world’s leading trading partners, including and especially the United States where embargoes do not apply. For Russian consumers, this means higher prices for finished goods and services that are not justifiably priced in the Russian Ruble (₽).

When Russian consumers want to spend on big-ticket items, they have to work harder and longer, save more and manage their money better than consumers in the U.S. Economics and the PPP explain why Russians often work abroad and repatriate foreign currencies with higher PPP than the Ruble so to afford goods and services in Russia. This consumption strategy tightens the labor market for Russians; however, in the long run, this is not an economically viable alternative to internal market corrections.

Creating Middle-Class Improvement

How can the rest of the world equal the playing field for Russia? The answer is difficult. First, the law of incentives must be prioritized in Russia’s labor environment to keep skilled and unskilled labor in Russia and reduce currency repatriation. Secondly, Russia needs to begin to play by the rules set by developing countries if the country wants to reduce its PPP relative to trade nations. Last but not least, these prior measures will work to benefit Russian importers, businesses, and most importantly, Russian consumers. It is time to bring more power back to the Russian Ruble for the middle class of Russia.

– Nicholas Maldarelli
Photo: Flickr

March 11, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-11 07:30:122019-12-18 08:40:49Purchasing Power Parity: The Russian Ruble vs. The American Dollar
Global Poverty

President Macron’s Fight Against Poverty in France

Poverty in France
France, the world’s seventh-largest economy, gained national media attention as the “Yellow Vest” protest hit its 10th consecutive weekend. The protesters — originally citizens of the country’s rural areas — came to Paris to protest higher taxes on fuel. Now, three months into the protest, the movement has changed its message to target many economic problems that those living in poverty in France struggle with.

Poverty in France

This unrest has pressured French President Emmanuel Macron to do more to help the nation’s poor. He has now announced an anti-poverty plan worth 8 billion euros ($9.3 billion) aimed at appeasing the protestors and increasing the fight against poverty in France. He hopes it will get people into work and help the young. Specifically, this plan includes increasing: schooling until the age of 18, nurseries to get mothers into work, emergency accommodation with a priority for women and children, and breakfast for students in the poorest areas.

Additionally, the package includes wage increases and tax relief for low earners and retirees. Macron also launched a “national debate” to talk to the public about their economic situation. This period is to last two months, and end with a “new contract for the nation.”

Steps to Improvement

Poverty in France affects 9 million of the country’s 67 million people with a third of them being children. Macron has stated that the previous welfare system “does not do enough to prevent people from falling into poverty, does not do enough to eradicate poverty.” He has expressed frustration at previous plans, saying they “plow a wad of cash” into benefits, but produce very few results. Macron also plans to make these earlier systems more simple, as one in three people eligible for core benefits do not apply.

People know these low application rates well, in addition to the very real struggles of applying. A story on Expatica, a website that helps immigrants in Europe settle into their new countries, has a very telling story on a citizen’s attempt to apply for aid. The author describes the process of applying for three state programs providing assistance. Describing the welfare system as “tricky,” they share that one of their claims had boomeranged back to them four times and that this experience is something everyone applying should expect.

Complex Issues, Concrete Solutions

According to the author, the administration is well aware of the complexity of the process, which is exactly why it requests documents multiple times. This repetitive behavior requires applicants to deal with huge stacks of paperwork and multiple trips to state offices. Stories such as these may explain the low application numbers and also act as some of the issues Macron hopes to address in his new programs.

Although many of the protesters expressed concern over Macron’s national debate, it is extremely clear many people in the country need help, and many of the programs need reforming. With the debates and planning still in the works, it can be hard to tell exactly what is going to occur. However, the people are talking, and it appears the government is listening. The fight against French poverty is clearly still ongoing, but progress is steadily happening.

– Zachary Sparks
Photo: Flickr

March 11, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-11 01:30:452024-05-29 22:58:18President Macron’s Fight Against Poverty in France
Poverty Reduction, USAID

Living Problems in West Bank and Gaza

The West Bank and Gaza
The West Bank and Gaza are considered Palestinian territories that have struggled with political power since the Six-Day War in 1967. This dispute has been between Israel and Palestine and the end result of the war has left the country in political turmoil. This devastated economic opportunities, local livelihood, sanitation conditions and household food consumption. In 2017, the 50th anniversary of Israeli occupation and the 10th anniversary of the Gaza blockade were marked. This has been affecting all job opportunities and proper food aid from entering the region. All of these factors have only made it more difficult to live in already precarious conditions and more risk for the already struggling population.

Work of USAID

The U.S. government works closely with the authorities in Palestine to address the economic and humanitarian needs of the country. To improve economic growth, USAID has donated roughly $400 billion to improve in-house situations for companies and impoverished families in West Bank and Gaza. Providing basic needs like clean sanitation systems and safe work environments is essential to maximize productivity within the company and keep the workers healthy. Many companies suffer from a lack of resources and expertise for their products, so the project Compete will help business owners learn more about their product, how to maximize value for those products and increase employment within the surrounding areas. The goal is to increase competitiveness and revitalize the private sector, bringing to the table full-time jobs, part-time jobs, seasonal jobs and paid internships.

Food Sovereignty of West Bank and Gaza

Food insecurity is a huge issue in the West Bank and Gaza territory as over 70 percent of people in this area suffer from lack of food and proper nourishment. Some of the causes for this are also a global phenomenon, environmental degradation, rising food prices and Palestinian food sovereignty. With food sovereignty, a state can control its own food resources, though that state has to have a self-sufficient food source with the help of government-controlled policies.

Since the occupation in 1967, Israel has confiscated thousands of acres of farming land and then separated it with the West Bank wall. With the separation of land, farmers are struggling to keep up the health with crops due to vandalism and destruction from settlers and the military. In Gaza, 25 percent of fertile land has been destroyed by the buffer zone, a zone that borders Israel. Patrol boats in the area only allow fishermen 15 percent of their territorial waters, further reducing the areas self-sufficient food sources. With the limitations on trade, environmental issues, confiscation of land and destruction of land, food sovereignty is unachievable. This has hindered economic growth and social conditions to reduce the levels of food insecurity.

Clean Water Access

Access to clean, potable water is limited by the wall between the West Bank and Gaza. Beaches, rivers and lakes are polluted and overcrowded refugee camps create health hazards for the sanitation systems. About 26 percent of diseases in West Bank and Gaza are related to filthy water. During the winter months, household septic tanks overflow and mix with rainwater, flooding homes and streets in the area. During the summer, the heat dries the streets from the flood and the smell coming off the streets is so bad that families keep their windows shut. Mothers refuse to let their children out to play because of the rancid smell and infected water.

Diseases continue to spread as garbage continues to pile up in refugee camps. The Anera organization is working on building proper waste management systems across Palestine, improving sanitation systems in the process. In 2014, Anera reconstructed sewage lines damaged by bombs. In refugee camps, they are taking an approach where the youth take the lead. Through campaigns designed to clean and recycle, they have developed a staff to train on proper waste management and a new sorting facility. They are creating a cleaner environment for 13,000 members of their community so far and will continue to reach out and help their people.

Health System in West Bank and Gaza

The health system in West Bank and Gaza has been shaped by years of occupation, political stalemate, violence and human rights violations. The barrier placed between the two territories limits access to East Jerusalem, the closest area that has specialized hospitals. The placement of these hospitals is scattered due to the many health care providers in the country. With the blockade in place, Gaza’s health care locations are experiencing unstable power supply and recurring power cuts.

The medical equipment has been deteriorating because of inadequate maintenance and spare parts cannot reach them. The barrier has also made it difficult to transport proper medicines to treat patients. All of these factors are crushing the health care system in West Bank and Gaza, making people seek treatment elsewhere though traveling in and out of Gaza is heavily restricted. Even with these limitations, health care in these areas still thrives. With the help of the World Health Organization, technical support will be provided to health technicians and fund projects created for diseases affecting the population.

Even with all of these issues, West Bank and Gaza still work out solutions to everyday and past problems. If these areas can continue to receive the funding from developed countries and nongovernmental organizations, they can grow back into the self-sufficient economy they once had.
– Kayla Cammarota
Photo: Flickr

March 10, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-10 19:30:582024-05-29 22:58:06Living Problems in West Bank and Gaza
Global Poverty

Top 10 Facts About Hunger in Bahrain

Top 10 Facts About Hunger in BahrainThe Kingdom of Bahrain is an archipelago in the Persian Gulf composed of over 80 islands. Acclaimed for its socioeconomic growth and development, it ranks within the top 50 food-secure countries worldwide. Today, the state and the private sector hope to improve the resilience of the food import economy further by implementing new animal and agricultural initiatives designed to provide citizens with long-term access to foods and overcome persistent challenges. 

Illustrating the dynamic between existing struggles and state reform are the top 10 facts about hunger in Bahrain.

Top 10 Facts About Hunger in Bahrain

  1. Obesity rates increased drastically in recent years, now posing one of the most serious threats to public health in the country. Approximately 40% of adults are considered to be obese. A shift toward more sedentary lifestyles and changing dietary patterns are to blame for this trend. The growing prevalence of obesity is especially alarming as it can result in an increase in chronic non-communicable diseases, like diabetes and cancer.
  2. Women are more susceptible to obesity than men. The prevalence of obesity among the Bahraini population is highest in women, with 42.5% classified as obese, with a BMI of 30 or higher.
  3. Nearly 12% of the Bahraini population was born with a low birth weight. A low birth weight is considered by WHO to be 5.5 pounds or less. The proportion of infants born with a low birth rate can be an indicator of many major public health problems, including long-term maternal malnutrition and poor health care during pregnancy. Little progress has been made in Bahrain to alleviate this rate within the past decade.
  4. In old and new cities alike, green spaces are extremely limited. Coupled with an intensification of sandstorms resulting in desertification, local crops are threatened and many have even become extinct. An estimated 3.6 billion hectares have been lost to the consistent degradation of drylands. To combat this, a new agricultural strategy issued by the government has encouraged farmers to preserve their land and increase the use of greenhouses in agricultural production to ensure food security.
  5. An estimated 216,161 tonnes of annual household food is wasted. This number triples during the months of Ramadan, which severely impacts the level of greenhouse gas emissions. Wasted food costs Bahrain approximately $250 million per year and continues to increase exponentially, contributing to municipal issues such as rodent infestation.  
  6. Bahrain is listed among the top ten countries that are likely to suffer from a water crisis in the next 25 years. The Middle East is the least water-secure region in the world as it depends on a rapidly dwindling supply of groundwater and desalinated seawater. Bahrain’s response to this crisis has been the construction of desalination plants, which, despite meeting water demands, release large amounts of carbon dioxide, creating adverse environmental impacts that are correlated to lower precipitation and an increase in the average temperature. 
  7. Bahrain provides a system of subsidies for basic goods and services. By creating a low, fixed price for goods, the government aids citizens who would otherwise be unable to afford necessities like meat, flour or water – for instance, compensation subsidies on meat are dispersed every three months to all registered citizens. In doing so, the government successfully increases gross consumption by poorer households.
  8. Many low-income Bahraini families benefit from migrant worker remittances. These remittances fund essentials, such as food or utilities, for citizens who otherwise cannot provide for themselves. Remittances are especially important as they go directly to those in need. According to the World Bank, $2.71 billion in personal remittances was paid to Bahrain in 2022. 
  9. The state provides free health care to all Bahraini citizens. Health care is free for Bahraini citizens at government hospitals and medical centers, and available for a nominal fee for non-citizens. Bahrainis and domestic workers receive free health coverage from the government. Currently, Bahrain is shifting from offering free health care to all nationals and residents to a system of mandatory insurance that provides full government-subsidized insurance to nationals and partially subsidized insurance to expatriates.
  10. Bahrain is working to gain self-sufficiency in 10 key food commodities. These key food commodities include wheat, rice, poultry, eggs, and dairy products. Investing in agricultural production, food processing, and packaging industries allows businesses to partner with the state in national food security efforts while increasing economic productivity. Companies such as the Bahrain Sugar Refinery are expected to start operating soon with a production capacity of about 600,000 tonnes per year for sugar, 7,600 tonnes per year for molasses, and 10,000 tonnes per year for yeast – ensuring enough food to sustain the Bahraini population without reliance on imports. 

Though hunger itself is not a prevalent issue, issues stemming from poor nutrition practices continue to affect the country today. Obesity is currently the greatest threat to public health, affecting young and adult populations alike. Government resources used to help fight hunger and malnutrition may further benefit citizens by being apportioned to accessible education on better nutrition and health practices.

– Natalie Marie Abdou
Photo: Flickr

Updated: July 12, 2024

March 10, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-03-10 01:30:542024-08-27 11:11:54Top 10 Facts About Hunger in Bahrain
Page 1360 of 2447«‹13581359136013611362›»

Get Smarter

  • Global Poverty 101
  • Global Poverty… The Good News
  • Global Poverty & U.S. Jobs
  • Global Poverty and National Security
  • Innovative Solutions to Poverty
  • Global Poverty & Aid FAQ’s
Search Search

Take Action

  • Call Congress
  • Email Congress
  • Donate
  • 30 Ways to Help
  • Volunteer Ops
  • Internships
  • Courses & Certificates
  • The Podcast
Borgen Project

“The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them.”

-The Huffington Post

Inside The Borgen Project

  • Contact
  • About
  • Financials
  • President
  • Board of Directors
  • Board of Advisors

International Links

  • UK Email Parliament
  • UK Donate
  • Canada Email Parliament

Get Smarter

  • Global Poverty 101
  • Global Poverty… The Good News
  • Global Poverty & U.S. Jobs
  • Global Poverty and National Security
  • Innovative Solutions to Poverty
  • Global Poverty & Aid FAQ’s

Ways to Help

  • Call Congress
  • Email Congress
  • Donate
  • 30 Ways to Help
  • Volunteer Ops
  • Internships
  • Courses & Certificates
  • The Podcast
Scroll to top Scroll to top Scroll to top