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Girls’ Education in Pakistan

Girls' Education in Pakistan
Girls’ education has always been a point of concern in many developing nations. Pakistan is one among them. The Economic Survey of Pakistan (2015 – 2016) highlights a 2 percent decline in the nation’s literacy rates from 60 percent to 58 percent. Also, while the urban areas mark a literacy rate of 74 percent, it is as low as 49 percent in the rural areas. But, with the increase in awareness, undiluted efforts and the focus on ‘Pakistan Vision 2025’, the future for girls’ education in Pakistan looks bright.

In 2018, fresh hope has emerged for Pakistan as it experiences a host of welcoming changes, all focused on enhancing girls’ access to education:

  1. Korea’s monetary support to UNESCO with the mission of ameliorating girls’ education
  2. Malala Yousafzai’s recent visit to Pakistan for the first time after the Taliban attack in 2012
  3. The launch of the book Knowledge is Bulletproof with a bulletproof cover page on World Book Day.

Korea Extends Support to Girls’ Education in Pakistan

On March 23, 2017, The UNESCO Director-General Audrey Azoulay and the Korean Ambassador to UNESCO Lee Byong-hyun signed an agreement to support national capacity building to make girls’ right to education a reality in Bahawalpur and Muzaffargarh districts in South Punjab and Gilgit-Baltistan.

This $3.4 million project between UNESCO’s Girls’ Right to Education Programme in Pakistan and the Korean International Cooperation Agency aims to bring quality education in the remote regions of Pakistan.

Ambassador Lee expressed how foreign assistance and education hugely improved the post-war poverty-stricken condition of Korea. This clearly highlights the importance of foreign aid in abolishing poverty.

Malala Yousafzai’s Visit to Pakistan

The youngest Nobel laureate visited her hometown Swat Valley in Pakistan on March 31, 2018, not simply to relive the memories of growing up in her house but also to present her hometown with the gift of quality education.

She opened a state-of-the-art school using The Malala Fund and her Nobel Prize money. Malala writes in her blog, “Pakistan comes second after Nigeria in the ranking of out-of-school children, with 24 million girls and boys denied access to education today. My dream is to see all Pakistani children with access to 12 years of free, safe and quality education…In just a few years, Malala Fund has invested $6 million in our work for girls’ education in Pakistan, from opening the first secondary school for girls in Shangla to supporting Gulmakai Champions across the country.”

Malala’s recent visit births new promises for young girls and women who struggle for their rights on a daily basis. Though some parts of Pakistan still advocate the extremist mentality and hatred for Malala, change is slowly ushering in and Malala’s visit proves it. The visit is also a positive answer to all the doubts about government involvement in enhancing the lives of women in Pakistan.

Bulletproof Book for Girls’ Education in Pakistan

On this year’s World Book Day, resistance took a new form in Pakistan. Sanam Maher, a journalist based in Karachi, recently published a novella titled Knowledge is Bulletproof which tells the story of two girls who survived the Taliban attack along with Malala in 2012.

The world has not heard much about Shazia Ramzan and Kainat Riaz who endured the terrifying incident and continue their fight for girls’ education in Pakistan. This book which was inaugurated by the award-winning Pakistani filmmaker, Sharmeen Obaid-Chinoy, provides these young activists more scope to voice their strength. Obaid-Chinoy claims that the profits will be donated to charities that work towards improving girls’ education in Pakistan.

The book is designed by advertising agency BBDO and has a Kevlar binding which makes it strong enough to repel a nine-millimeter bullet from as close as five meters. The book is symbolic of the strength and willpower of Pakistani girls and women who continue to attain education despite all the hurdles that come their way. It is also a source of motivation for many girls who refrain from going to school due to many stereotyped social and cultural taboos. “To show that knowledge is indeed bulletproof, it was…ideal to design an actual bulletproof cover for the book,” Maher told The Arab News.

While she is excited at the possibility of reaching out to millions of girls through this new venture, she also hopes that the need for such campaigns lessen with time and more and more people realize the importance of girls’ education.

Education is the backbone of a nation’s economy. If a section of the population is deprived of it, it not only affects the nation’s GDP but also its standard of living. Though poverty continues to affect millions in developing countries, these recent developments offer hope for a brighter and better tomorrow. They prove that transformation is slow but in process. Promoting girls’ education in Pakistan and elsewhere and encouraging women’s participation in the labor force are among the major ways in which poverty can be abolished.

– Shruthi Nair

Photo: Flickr

Insurance in India

Insurance in India
India became independent more than 70 years ago. However, insurance in India has remained neglected. Until recently, 80 percent of the country’s population lived without insurance and largely unfamiliar with the banking system. They didn’t possess bank accounts, an identification card or a driver’s license. This is changing.

Since 2009, the government has undertaken steps to provide a unique identification to every citizen, popularly known as Aadhaar in Hindi. Now, leveraging the benefits of the Aadhaar and the willpower of a strong majority, the current government is taking quick and substantial action to bring Indians under insurance cover.

The Beginnings of Universal Insurance in India

The government has announced a slew of schemes to promote insurance in India. These schemes are offering easily accessible health, crop and business insurance to millions of people in the country. Announced in 2015 and 2016, the schemes are open to all citizens above the age of 18.

Even before people can be brought under the cover of insurance in India, there was an impending need to ensure financial inclusion of millions of people living in extreme poverty in the country. A program called Jan Dhan Yojna offered savings accounts free of cost. The scheme set in motion several other financial welfare schemes which offered subsidy cash transfers, pensions and insurance. A few have been listed below.

Life Insurance Cover

Announced in 2015, this scheme offers affordable life insurance in India to the masses. Each year, the policyholder pays a premium of 330 rupees (approximately $5). In case of the policyholder’s death, his nominee is paid 2 lakh rupees which is equivalent to $3,100.

In Indian economy, this amount is enough to start a small business or pay school fees of two children for around 10 years. More than 30 million people between the ages of 18 to 50 have already enrolled in the scheme.

Accident Insurance Cover

This is a scheme introduced to help people who have been injured due to an accident. The fact that in 2016, half a million people in India were injured in road accidents alone highlights the need for accident insurance in India. This scheme offers to pay 1 lakh rupees (approximately $1,500) in case of permanent disability and 2 lakh rupees (equivalent to $3,100) to the nominee in case of death caused by an accident.

The insurance cover can be renewed annually. Since its announcement in 2015, more than 9,000 people have been given accident insurance in India through this scheme.

Crop Insurance Cover

The majority of people in India are farmers and their livelihoods are highly vulnerable to the weather. Only the right amount of rainfall can result in a good harvest. Often various areas are affected by flood or drought.

This scheme offers to cover the loss suffered by a farmer in case of flood or drought. The government has set a low premium to make it all-encompassing. A crop farmer pays just 1.5 to 2 percent of the total sum assured, and the government pays the rest.

Experts believe that although these government schemes might seem ambitious, they are going to change the landscape of insurance in India in the next decade.

– Himja Sethi
Photo: Flickr

ATM Pharmacies in South Africa Cut Wait Times

ATM pharmacies in South Africa Cut Wait Times for Chronically Ill Patients
The suburb of Alexandra, South Africa, is now home to Africa’s first pharmacy dispensing unit. ATM pharmacies in South Africa are expected to have a profound effect on the wait time for patients and the efficiency of clinics.

Simple Solution to Improve Lives

The machine operates as seamlessly as an ATM that dispenses money and completes the transaction in as little as three minutes as opposed to hours. Also known as an “ATM pharmacy,” the unit comes as a convenience to citizens with chronic illnesses, while freeing up space in local clinics. Most importantly, people dependent on medication have another option in receiving repeat medication that does not compromise safety or effectiveness.

The new development comes from experts from nonprofit Right to Care, Right ePharmacy and the Gauteng Department of Health. Right to Care works to provide prevention, care and treatment for HIV and other sexually transmitted diseases as well as tuberculosis and cervical cancer.

Developers chose Alexandra as the first location because of its large population, burdened facilities, and level of need, Right ePharmacy managing director Fanie Hendriksz said.

The Need for ATM Pharmacies in South Africa

Innovations like ATM pharmacies in South Africa are a step toward higher-quality healthcare, making it easier for patients to be consistent with their medication schedules. One of the main target groups for this project was people with HIV in need of repeat antiretroviral medicine, as South Africa now has the world’s largest AIDS treatment program.

In addition to being overcrowded, some clinics are also understaffed. Nurses may be referred to other clinics to compensate for lack of staff. HIV/AIDS activist Bhekisisa Mazibuko broke into Kgabo clinic pharmacy to make a point about the outlandish wait times for chronic medications in Tshwane, a city not far from Johannesburg. Some patients start waiting in line as early as 3 a.m.

Mazibuko, who lives with HIV, used a brick to break the pharmacy door after it closed for the day at 4 p.m., not attending to patients who had been waiting for hours. He distributed medicine to hypertension, diabetes and HIV patients before being arrested.

A Way Forward

Patients whose conditions are stabilized are encouraged to use the pharmacy dispensing unit (PDU), although a referral from a doctor is necessary. The patient engages in a simple process of scanning their personal ID and entering a pin and speaking with a pharmacist via video correspondence.

Through this video chat, patients can be advised and directed on how to take the medication and its possible side effects. The patient then selects their medication which is robotically dispensed along with a receipt. The PDU has served more than 4,000 people and dispensed 18,000 prescription medications so far.

According to Right to Care chief executive Ian Sanne, the amount of time South Africans spend waiting in line at health facilities is quite extensive and is damaging to economic productivity. ATM pharmacies in South Africa is likely just the beginning of many healthcare innovations in Africa.

– Camille Wilson
Photo: Flickr

Understanding How the U.S. Benefits From Foreign Aid to Serbia

How the US Benefits from Foreign Aid to Serbia
Serbia is working to strengthen human rights protections and to promote economic growth within the country while facing external pressure from Russia. Russia has been expanding its influence and amplifying ethnic tensions in several countries that may join the European Union. In particular consideration of the close relations between Serbia and Russia, the U.S. benefits from foreign aid to Serbia because this aid works to prevent a new Cold War in the Balkans.

Social Benefits of Foreign Aid to Serbia

From 2001 to 2017, the U.S. gave about $800 million in aid to Serbia to help the country stimulate economic growth, promote good governance and strengthen its justice system. One example of a major issue Serbia is dealing with is human trafficking.

According to the U.S. Department of State’s 2017 Trafficking in Persons report, Serbia remains listed as a Tier Two country because it has yet to fully comply with the minimum standard for eliminating the issue. However, Serbia has shown significant efforts to address human trafficking by establishing a permanent human smuggling and trafficking law enforcement task force, identifying more victims as well as providing guidelines to judges and prosecutors.

Other U.S. aid to Serbia in the past has gone toward strengthening its export and border controls. This includes efforts to prevent the spread of weapons of mass destruction. More recently, U.S. military aid has helped Serbia take part in NATO’s Partnership for Peace programs as well as prepare for international peacekeeping missions.

Economic Benefits of Aid to Serbia

From an economic standpoint, the U.S. benefits from foreign aid to Serbia through U.S. investors in the country. These investors include KKR, Philip Morris, Ball Packaging, Coca-Cola, PepsiCo, Cooper Tire and Van Drunen Farms. In 2013, Fiat began shipping cars manufactured in Serbia to the U.S., increasing imports from the Balkan countries.

In addition, U.S. technology companies in Serbia are becoming more interested in opportunities in areas such as e-government, cloud computing, digitization, IT security and systems integration. In 2013, Microsoft even signed a $34 million contract to provide software to government offices in Serbia.

Political Benefits of Aid to Serbia

U.S. aid to Serbia is currently focused on helping the country integrate into the European Union, which will decrease Serbia’s vulnerability to Russian aggression as well as strengthen its democratic institutions. Out of the $5.39 million the U.S. plans to allot in foreign aid to Serbia in 2019, 46 percent will be allocated to strengthening the country’s rule of law and protection of human rights, 34 percent will be put toward increasing the capacity of civil society organizations and 20 percent will be for good governance.

The U.S. benefits from foreign aid to Serbia from a diplomatic perspective as well in the case of international terrorism. The Ministry of Interior Directorate of Police, the Security Information Agency and Serbia’s law enforcement and security agencies have continued to work with the U.S. to prevent this major security threat, which affects both nations as well as the rest of the world.

In the past, Serbia has hosted a regional counterterrorism conference on foreign terrorist fighting. The country has also sent representatives to conferences in Albania, Italy and Slovenia to discuss how to counter violent extremism.

There are many economic and political reasons the U.S. and Serbia would benefit from the U.S. providing aid to Serbia. Together, the two countries have great potential to make technological advancements as well as work for a more peaceful world.

– Connie Loo
Photo: Flickr

Exploring How the Media Misrepresents India

Media Misrepresents India
India is a vast South Asian country, not only with diverse terrain stretching from the Himalayas to the Indian Ocean Coastline but also with significant socio-economic contrasts. It is understandable how the media misrepresents India because it tends to shed light only on the rural and urban poor and the struggling.

With a population of more than 1.3 billion, there are stories of unfortunate and inhuman events that occur in the country but those events don’t represent India, as a whole. India needs to be looked at through fresh lenses to dispel the following ideas.

How the Media Misrepresents India

  1. Poor India: India is a developing country with 22 percent of its population living in poverty, but only about 5 percent of the Indian population lives in slums. The International Monetary Fund confirmed that India will be the fastest-growing major economy with a growth rate of 7.4 to 7.8 percent in 2019. In terms of GDP, India is now the world’s sixth-largest economy. 
  2. Uneducated Nation: This is another example of how the media misrepresents India, as an uneducated country. India has more than 1.5 million schools with more than 260 million students. Currently, India produces about 9 million graduates and 26.5 million students enrolled in Indian higher education per year. The country is set to produce the world’s largest number of engineers. The first ever Global Report commissioned by the Queen Elizabeth Prize has revealed that 80 percent of Indians aged 16 and 17 have shown interest in engineering, compared to 30 percent in the U.S. and 20 percent in the U.K.India is also the only country after the U.S. and Japan to build a supercomputer independently. Indian Space Research Organization (ISRO) also became the first country to orbit around Mars on its first attempt at a cost of just $74 million, which is just a fraction of what other nations have spent.  
  3. Dirty and chaotic: The media overlooks the fact that the country has luxury malls and hotels too. The number of malls has increased drastically in the past few years. With no malls in 2002 to 308 malls in 2017, India has improved a lot. The Government is also taking various actions like Swachh Bharat to bring out a better and clean India.
  4. Bollywood is a Zumba class: The Indian film industry is actually the largest film industry in the world, releasing more than 1,000 films each year. In 2015, there were two thousand multiplex theaters and the following year, 2.2 billion movie tickets were sold, which makes the country the leading film market in the entire world. Indian movies are not Hindi movies alone, but a variety made in different states and in different regional languages.

These are just a few examples of how the media misrepresents India. Hopefully, in the coming years, the media will shed more light on the brighter side of the country.

– Shweta Roy
Photo: Flickr

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Girls’ Education in Russia and the Wage Gap

Girls' Education in Russia
At a glance, girls’ education in Russia seems to be fairly equal to boys’. For example, 37 percent of women have a higher education, while only 29 percent of Russian men do. However, gender biases and discrimination still exist within Russia. While more women have a higher education than men, their salaries are still 73 percent of men’s average salary.

What Hinders Girls’ Education in Russia

Girls’ education in Russia tends to be a competition. The payment for higher education is often too much for families, and while scholarships exist and can help the child through school, it is usually not enough.

The challenge of even attending school can come as early as kindergarten. The government’s policy tends to lead to a significant shortage of kindergarten classes. This leads to a difficult decision for families on whether to send their child to kindergarten and may even persuade them not to have children at all.

Room for Improvements

Women are more motivated to save money to attend higher education than men, with 20.7 percent of women saving money for school compared to only 14.6 percent of men. The men who save usually do so in order to escape military service.

Even though receiving education can be a hassle and can lead to a lower income job compared to men, girls’ education in Russia has improved slightly. Before 1764, girls’ education in Russia wasn’t even considered. It was not until Catherine II’s reforms that education rights were applied to both men and women.

Varying Job Paths

Education for girls, however, mostly happened in the home. They were taught about their duties as wives and mothers rather than learning about math and science. Russian Deputy Prime Minister Olga Golodets explained there might be a natural reason for this. “Women usually have to combine professional duties with household responsibilities and raising children,” Golodets said.

This mindset affects the kind of jobs women are expected to have. It is thought that education positions are for females because they are, or will become, mothers and teaching does not require much physical effort. Along with this, women are often found in lower positions, with men being in charge and holding manager positions.

While more women attend higher education than men in Russia, women’s salaries are still lower than a majority of men’s. Along with this, women are often pushed into only one area of employment and not into managerial positions. While girls’ education in Russia seems better than most countries, women still face issues and discrimination.

– Marissa Wandzel
Photo: Google

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Economic Development in Brazil Key to Keeping Poverty Rate Low

Economic Development in Brazil Key to Keeping Poverty Rate Low
According to a report issued by the World Bank, economic development in Brazil has lifted some 29 million people out of poverty between 2003 and 2014. The level of inequality declined significantly, with the Gini coefficient (the statistical measure of distribution often used to chart wealth inequality) falling by 6.6 percentage points in the same period, from 58.1 down to 51.5.

Moreover, the poorest 40 percent of the population experienced a massive rise (an average of 7.1 percent between 2003 and 2014) in income while the whole population enjoyed a 4.4 percent income growth.

A Variety of Programs Focus on Economic Development in Brazil

Most of the credit for such economic development in Brazil goes to a massive initiative, namely a global center for poverty reduction called Mundo Sem Pobreza (World Without Poverty), which has effectively become a place where ideas and anti-poverty programs are translated into reality for the benefit of the most disadvantaged citizens.

One of the most prominent of such programs is called Bolsa Familia. In its decade of implementation, this program, which consists of a conditional cash transfer program through which parents receive a fixed monthly stipend of about $30 in exchange for sending their children to school and complying with different health checkups, has managed to reduce poverty by half in Brazil (from 9.7 percent to 4.3 percent), aiding some 50 million low-income Brazilians.

According to a study led by Paul Glewwe of the University of Minnesota and Ana Lucia Kassouf of the University of Sao Paulo in 2012, Bolsa Familia did in fact improve children’s school enrollment rates.

This program has been paired with others, such as Brasil Sem Miseria, which was designed to help millions of Brazilians escape extreme poverty, while the Brazilian government has taken very seriously cogent issues such as expanded access to education and reducing income inequality.

Brazilian Government Both a Help and a Hindrance

However, what has really lent a helping hand to the overall betterment of Brazil’s social and economic conditions was a combination of public policy (expansion of access to education and government transfers to the poor) and favorable market factors (rising wages for low-skilled workers), both of which have led to substantial declines in inequality in Brazil.

Despite the laudable results achieved through social programs and economic development in Brazil, the rate of reduction of poverty and inequality appears to have stagnated since 2015. Political instability and a problematic recession have kept Brazil in an economic stalemate.

Moreover, while President Dilma Rousseff’s successor Michel Temer promise a rigid fiscal policy, major adjustments are undermined by budget rigidities and a difficult political environment.

Indeed, less than 15 percent of expenditures in Brazil are at the discretion of the political realm. Most public spending is rigidly determined by constitutional regulations and cannot legally be reduced.

Statistics Show Recent Progress

The overall situation is not beyond repair. In fact, 2017 saw a rise in household spending by 1 percent compared to a 4.3 percent decrease in 2016. Exports rose 5.2 percent compared to 1.9 percent in 2016. Imports grew by 5 percent (they dropped by 10.2 percent in 2016), marking the first increase in four years.

Thus, constant attention to keeping the markets open and efficient alongside a careful administration of public finances are key to getting Brazil back on track towards economic development and poverty reduction.

– Luca Di Fabio
Photo: Flickr

Progress Towards Universal Vaccinations in Egypt

Vaccinations in Egypt
Vaccinations have been proven to be the most powerful and most cost-effective health intervention that can be provided to a population. Vaccinations have been proven to reduce disease, disabilities and deaths, especially in children under the age of five. The majority of unvaccinated children reside in low to middle-income countries where health systems are compromised, such as Egypt. Vaccinations in Egypt have proven incredibly successful, but the country still has a ways to go.

There are three main organizations that supply vaccinations to low-income countries. These are UNICEF, the Pan American Health Organization and the Gavi, the Vaccine Alliance. These organizations understand the impact vaccinations have on the eradication of disease.

Vaccinations in Egypt Have a Track Record of Success

Vaccinations have had a large impact on the health of children in Egypt. The vaccinations in Egypt that have been the most successful are poliomyelitis and neonatal tetanus. These vaccinations are responsible for nearly eradicating these diseases. The last case of polio was recorded in 2004, and by 2005, only 25 cases of neonatal tetanus were recorded.

Egypt established the National Immunization Program in the 1950s, and the first vaccinations introduced to the population were tuberculosis and diphtheria. Pertussis and tetanus vaccinations in Egypt became available in the 1960s. In 1977, the measles vaccination was introduced, followed by the measles, mumps, and rubella (MMR) combination in 1999.

However, better access to vaccinations in Egypt is critical. Measles and rubella were the most common diseases prior to vaccination programs in 1977, and even though it has been estimated that as of 1999, 95 percent of children were vaccinated with MMR, there were still major outbreaks of measles and rubella in Egypt between 2005 and 2007. Measles was considered endemic until 2008, when measles cases were estimated at less than one per every 100,000 people.

International Efforts to Increase Access to Vaccines in Egypt

Egypt has developed a strategy to increase access to vaccinations for the general population. The main organizations that coordinated and funded this plan are the Ministry of Health and Population, UNICEF and the World Health Organization. The plan is to increase access to vaccinations in Egypt in these ways:

  • Target 36 million children between the ages of two and 19
  • Maintain coverage of the vaccinations already supplied
  • Strengthen and increase school immunization programs
  • Obtain stronger disease surveillance
  • Improve social mobilization
  • Establish the Interagency Coordinating Committee

Egypt has put forth great effort to provide vaccinations to all of its children. However, there is still a substantial need for more vaccinations in Egypt.

There are nonprofit organizations that are working to improve this situation for Egypt and other countries in need. The Access to Medicine Foundation is motivating the pharmaceutical industry to aid low to middle-income countries such as Egypt. In 2008, the Access to Medicine Foundation published the first Access to Vaccines Index. This index acknowledges the pharmaceutical companies that are responding to the need for vaccination in low-income countries and highlights each company’s progress. There are many positive actions that are improving access to vaccinations in Egypt and other low-income countries. However, the need is still present and crucial.

– Kristen Hibbett
Photo: Flickr

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Health and Recovery of a Nation: Girls’ Education in Haiti

girls' education in Haiti
On Jan. 12, 2010, a 7.0-magnitude earthquake shook the island nation of Haiti. In the aftermath, 200,000 people were left dead and 1.5 million homeless. Homes, hospitals and government buildings crumbled, leaving communities scrambling for essential resources and shelter.

Volunteers and relief organizations across the globe swarmed with aid. Most aid groups from the earthquake have since left and the rebuilding process now lies in the hands of Haitian community members and scholars. Eight years later, many still live without basic services (clean water, plumbing) or health resources.

Citizens agree that girls’ education in Haiti and community development need to improve before the country can truly recover. A recent study using World Bank data has listed Haiti as a nation significantly below global enrollment rates for girls in schools.

World Bank data from 2014 states 15 percent of girls 12 to 18 are no longer in school, compared to 11 percent for boys. Only 45 percent of Haitian women over 15 are literate, compared to 53 percent for men over 15 years old. For effective redevelopment, the trends for girls’ education in Haiti are something both locals and researchers agree need to change.

In response to lower female community involvement and enrollment in schools, many research and educational programs focused on girls’ education in Haiti have started gaining popularity throughout the island nation.

Jayne Engle, a doctor of participatory community development in post-earthquake Haiti, conducted a post-earthquake study focused on effective and sustainable community development in Bellevue-La-Montagne, a small community near Port-au-Prince. She prioritized the rebuilding process by the following “levers of transformation:”

  1. Education (for all)
  2. Place identity, networks and research
  3. Social entrepreneurship and social innovation
  4. State-society trust and accountability

Engle worked extensively with community leaders to develop educational programs concerning social entrepreneurship, healthcare, environmental stewardship, community agriculture, planning and construction. As a result, the community has made significant progress in its infrastructural recovery and social equity. Engle believes her framework could be effective on a nationwide scale.

The Days for Girls (DfG) International program teaches Haitian seamstresses to produce DfG hygiene kits for distribution to women across Haiti. Each kit contains valuable information concerning female hygiene as well as safe, clean female hygiene products. During the two-month trial program, 90 percent of participants agreed the kits were easy to use and clean.

The Haitian Health Foundation’s (HHF) GenNext program combines a youth soccer league with “female sexual reproduction health” classes taught by nurse educators. The league is for girls only, as well as the classes. A three-year study of league participants compared to peers not in the soccer league showed significantly fewer pregnancies for league participants.

These programs and others continue to educate a generation of Haitian women eager to propel their
nation from poverty and hardship. As these efforts and more continue, girls’ education in Haiti is sure to only improve over the coming years.

– Charles Metz
Photo: Flickr

Rang De Facilitates Peer-to-Peer Microloans in India

Rang De Facilitates Peer-to-Peer Microloans in India
According to the World Bank, approximately 20 percent of India’s population is poor. This totals 270 million people. These low-income individuals often lack credit or banking history and are considered too risky to finance by traditional lenders, like banks.

Rang De is a peer-to-peer microlending platform that works to increase low-income Indians’ access to capital. So far, Rang De has disbursed 57,096 microloans in India.

How Rang De Facilitates Peer-to-Peer Microloans in India

Low-income individuals are often unable to access capital from major lenders. Often, this underserved population turns to independent lenders who charge extremely high-interest rates for small loan amounts. Microloans from qualifying lending institutions are an alternative to predatory lenders. Rang De keeps interest rates low, between six and 10 percent.

Loans are financed by social investors, who choose a borrower through the platform and contribute in multiples of Rs.100. So far, 12,443 social investors have helped finance microloans in India.

Interest is used to pay back investors and to fund Rang De’s internal expenses; two percent of interest payments go to each. The rest of the interest payment funds rural partners who conduct literacy training sessions and collect borrower statistics.

Rang De’s Success So Far

Social investors can choose to finance a wide range of borrowers, from entrepreneurs to students to farmers. One example is Pooja Devi, a tailor who secured a loan of RS.10000.

Devi’s husband works at a factory and earns only Rs.7000 per month, too little to pay for their housing. Devi holds a Master of Arts degree but lives in a village with few work opportunities. As a new mother, finding suitable work while looking after her infant has proven impossible.

Devi accessed a Rang De loan to purchase a sewing machine for her at-home tailoring business. Her business is about four months old and she currently earns only Rs.1000 per month but plans to grow her client base. Tailoring at home gives Devi the flexibility needed to look after her infant while providing an additional stream of income for her family.

Ensuring Continued Success for Rang De

Rang De’s cofounder, Smita Ramakrishna, says that Rang De purposely keeps initiatives small so individual lenders receive more assistance. In addition to facilitating microloans in India, Rang De also focuses on increasing the financial literacy of borrowers. “For every sector we work with, we actually design the loan product to make sure that it works for them,” said Ramakrishna.

The majority of Rang De’s microloans in India, 93.25 percent, go to women. To further support this group, Rang De launched a new initiative targeted at women called Swabhimaan. Swabhimaan provides online loan applications and credit scoring. Self-serve kiosks set up around villages serve as portals to the online services. Women will be able to access same-day loans from Rang De with more ease and autonomy thanks to the kiosks.

To tackle skepticism in target borrower communities, Rang De publishes interest rates publicly on its website. The nonprofit also regularly updates social investors and hosts in-person meetings with both investors and borrowers.

Rang De’s hands-on approach and transparent business practices have led to a consistently high loan repayment rate of 93 percent. Ultimately, Rang De’s cofounders believe the innovative initiatives implemented through Rang De will “go a long way in making poverty history in India.”

– Katherine Parks
Photo: Flickr