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The Rise of Philanthropy in China Will Continue to Better Lives

The Rise of Philanthropy in China
China has often been regarded as an “uncharitable” culture. Based on the numbers, there is a large gap between philanthropy in China and the U.S., with only .17 percent of China’s total GDP in 2014 contributed to philanthropy compared to that of the U.S.’s 12 percent of its total GDP. However, the rise of philanthropy in China cannot be ignored as the country is going through a “Philanthropy Evolution.”

Through traditions like Confucianism, philanthropy is not a nonexistent concept in China. Throughout the text of Confucianism’s “The Analects,” the concept of philanthropy prevails, often enforcing the idea that man should give to people who are less fortunate. During Communist China, philanthropy soon became a concept for only the wealthy.

Why China is Regarded as Uncharitable

Corruption often strays many people away from donating. Prior to 2011, many organizations and charities in China functioned in a quasi-legal environment. Enforcement was often categorized as “unpredictable and inconsistent.”

An important and well-known case is the Red Cross Society incident in 2011 in which a woman who held a senior position soon began flashing new and luxurious items. According to the New York Times, “[the scandal] struck a serious blow to China’s nascent notions of philanthropy, especially efforts guided by the government.”

The rate of development of a country may, in fact, have a correlation to the country’s overall philanthropic activities. Western countries such as the U.S. were able to create and maintain wealth for a much longer period of time as they developed. This was not the same for China.

If one looks at philanthropy in regard to wealthy entrepreneurs and their contributions, “[China has only] sustained real economic power for just over 10 years; therefore, Chinese enterprises are still in the stage of creating wealth.” Not only are Chinese enterprises still in this stage of creating wealth, but before the last decade, charity remained “a state-controlled process focused almost solely on Communist party priorities.”

Change in Philanthropy

The rise of philanthropy in China can be credited to the efforts of the country. For example, the National People’s Congress (NPC) of China passed a New Charity Law that took effect on September 1, 2016. Key areas of interest comprised in this new charity law include registration as a charitable organization, new rules for fundraising platforms, new rules for fundraising organizations, the establishment of charitable trusts and law enforcement. The New Charity Law, in fact, makes it easier to raise funds from the general public.

With legal modifications, the internet has made donating funds and supporting charitable organizations much easier for the public. Philanthropy leaders in China understood quickly that social media had a huge impact and began using it to promote a nonprofit sector that was able to link news-related social issues to social media users across China.

With a couple taps on sites such as Tencent Online Donation platform, Sina Micro-Philanthropy Platform and Alipay E-Philanthropy Platform, ordinary people are able to donate money to different charities with ease. According to the China Online Donations Report, “the total online donations through third-party social network donation platforms surpassed $83 million in 2013.” Similarly, in 2013, the Jet Li foundation raised over $49 million in donations through social media for the victims of the Lushan Earthquake.

Continuing the Rise of Philanthropy in China

Many organizations are working to keep propelling philanthropic efforts forward. For instance, The Asia Foundation reports that “Give2Asia hosted a forum in Beijing, which brought together over 60 leaders from different sectors of philanthropy, government and business to discuss the current state of charitable giving in China, and new directions and opportunities for philanthropists in the future.” The forum discussed that funds had risen by ¥97 million after the earthquake and that there was an increase of about 100 million volunteers through China.

Furthermore, in order to change the philanthropic sector, and to fill the gap between China’s philanthropic activities and other countries, the government, charities and people must work together. Yet, with China’s legal modifications, a rise of philanthropists and a change in the general public’s mindset, the future of philanthropy is looking bright in China.

– Emma Martin
Photo: Flickr

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Danida: The World-Leading Agency of Denmark’s Foreign Aid

Danida Denmark's Foreign Aid
Denmark is one of the world’s leading providers of foreign aid. Not necessarily by dollars, but by Gross National Income (GNI). The U.N. set a target for 0.7 percent of a well-developed nation’s GNI be set aside for foreign aid. Denmark’s foreign aid meets that goal and its funds are distributed by Danida.

Denmark passed its first law regarding foreign assistance in 1962. Nine years later, the name Danida appeared to distribute Denmark’s foreign aid. Since its inception, it has gained its own logo and place within the Danish Ministry of Foreign Affairs.

Denmark’s Foreign Aid Through Danida

Denmark is one of the few nations that consistently meets and exceeds the U.N.’s goal. In 2015, Denmark allocated 0.85 percent of its GNI toward international development. Only six other nations met or exceeded the goal that year. Since 1978, Denmark has allocated at least 0.7 percent of its GNI toward Danida. This year will be no different. 

Danida operates in countries from Belarus to South Africa and from China to Chile. In recent years, Danida has centered its focus on Africa through various programs. Danida also supports non-governmental organizations already working in these countries. Like other nations, Danida also provides research grants to organizations and individuals through its Danish Development Center. In 2018, Danida will focus Denmark’s foreign aid to four main areas:

  1. Streamlining development cooperation projects and humanitarian aid projects in countries with conflict
  2. Focusing on immigration and the proper readmission of migrants not legally able to stay in Denmark
  3. Increasing employment of migrants and people in countries where there are Danish businesses
  4. Educating young people and providing more funding to women’s health and rights 

The Goal: Eradicating Poverty

Danida’s goal is to eradicate poverty in order to stabilize societies and governments. To achieve its goal, Danida funds programs that encourage the following:

  • Social and economic development
  • Human rights
  • Democratization
  • Security and counterterrorism
  • Humanitarian assistance including disaster relief
  • Environmental protection
  • Eliminate HIV/AIDS

Spending Foreign Aid Domestically

In 2016, Denmark began to roll-out a new strategy. According to the CPH Post, 30 percent of the money from Denmark’s foreign aid allocated to combat the refugee crisis abroad will be used to help migrants who have already reached Denmark. This system received mixed reviews. It was praised due to the benefits it would provide migrants in Denmark, including food vouchers, housing and healthcare.

However, critics say that by using this funding at home there is less money to help stabilize the nations the refugees are fleeing. There would be no need to spend this money domestically if these nations were stabilized in the first place.

Denmark is following the lead of other Scandinavian countries such as Sweden and Norway, who also spend 20 to 30 percent of the same allocated funds domestically. Both Sweden and Norway also consistently spend 0.7 percent or more of their GNI on foreign aid.

The 2018 budget outlines foreign aid plans and funding for Danida through 2021, staying at 0.7 percent of its GNI. The plan also hints that Denmark wants to keep this going until 2030. Hopefully, Danida will continue to operate well into the future and well past 2030.

– Nick DeMarco
Photo: Flickr

Top 10 Facts About Poverty in Lima, Peru

Poverty in LimaThe World Bank defines Peru as a country having upper-middle income, yet its capital city, Lima, is not free from the woes of poverty. With a population of more than 10 million, Lima is affected by a large income discrepancy and is susceptible to many natural disasters. To fully understand the circumstances, here are 10 facts about poverty in Peru’s capital:

10 Facts About Poverty in Lima

  1. The rate of poverty in Lima is currently 13.3 percent, which is 2.3 percent higher than the rate in 2016. However, compared to other Peruvian urban regions, Lima’s spike in the poverty rate is the lowest.
  2. Peru has an extreme poverty rate of 3.8 percent, which is defined as the inability to purchase a basket of basic food and beverages. However, this rate is only 0.7 percent in Lima, a lower number than the 1.2 percent prevalent in other urban areas of Peru.
  3. Lima’s slowing economic activity can be attributed to political turmoil. President Pedro Pablo Kuczynski, who was elected in 2016, was succeeded by Martin Vizcarra in early 2018 amidst allegations of corruption. Big banks, such as JP Morgan, claim that this “political noise” has made it difficult for investors to trust businesses in the region.
  4. While malnutrition continues to be a problem in Peru, Lima combatting this occurrence through community kitchens. Such kitchens provide food to half a million people in Lima alone and is organized by the local effort of over 100,000 women. These kitchens are a big part of Peru’s efforts to reduce hunger and malnutrition.
  5. Another fact about poverty in Lima is that there is a large income disparity, which has led to problems with access to clean water. While the rich have cheap water pumped into their homes, the poor pay almost ten times more for water to be delivered by lorries.
  6. Lima has to cope with heavy rainfall and floods due to its coastal location. These are often responsible for destroying most of the infrastructure, which was the case with the most recent flood — dubbed “coastal El Nino” — that inflicted $3.1 billion worth of damage. Lima, like many other coastal cities, had to share the burden, which was approximately 0.5 percent of Peru’s GDP in 2017. These natural disasters make it harder for residents to break out of the poverty cycle by capitalizing on infrastructure.
  7. Lima’s geography also poses as a restriction for city expansion. The city is a desert strip bounded by the Pacific Ocean, the Andes and three valleys. There is hence limited space available to build infrastructure and increase efficiency.
  8. Lima had a high employment rate of 93.4 percent in 2017. Of the employed population, however, 34.3 percent were still underemployed, suggesting that many did not have a job matching their skill level. Interestingly, Lima has experienced a 0.5 percent decrease in unemployment.
  9. Another important fact about poverty in Lima is that the divide between the rich and the poor has led to the rise of several squatter settlements, called “pueblos jovenes” (young towns) or “barriadas” (shantytowns). Currently, over 35 percent of Lima’s population lives in such squatter settlements.
  10. Despite many challenges, Lima’s residents are well-educated. About ninety-eight percent of the population older than 15 years are educated, of which 43 percent have higher education from post-secondary institutions.

Capital Progress

Although Peru itself faces several issues related to poverty, Lima has found ways to ameliorate the conditions and overcome difficulties. In the changing political and economic landscape of Lima, residents prove that there is both hope and a means to achieve such statuses. These 10 facts about poverty in Lima are but a testament to this city-wide occurrence.

– Sanjana Subramanian
Photo: Flickr

Revamping Favelas: Top 10 Facts About Poverty in Sao Paulo

Facts About Poverty in Sao Paulo
Sao Paulo is, by far, Brazil and Latin America’s largest city. The urban population is about 12 million, not including the metropolitan region right outside of Sao Paulo that accounts for about 20 million people. Despite the fact that the city’s commerce accounts for more than 12 percent of Brazil’s total GDP, close to a third of Sao Paulo’s 12 million people live in slum-like conditions.

The combinations of favelas and irregular land subdivisions are glaring symbols of Sao Paulo’s lingering poverty and tremendous inequality; however, while the conditions of Sao Paulo have worsened over the years, there have been some signs of structural improvement. Here are the top 10 facts about poverty in Sao Paulo.

Top 10 Facts About Poverty in Sao Paulo

  1. Sao Paulo is known as the largest city in the Western Hemisphere and has a poverty rate of 19 percent.
  2. Sao Paulo has a significant income gap between the rich and the poor. In 2000, a study conducted by Sao Paulo University found that half of the state’s population earned only 15 percent of the total income of the state.
  3. Sao Paulo has a gap between skilled workers needed in an industrialized and rapidly growing economy and limited skills available in the workforce. Brazilian employers and companies face increasing competition for skilled workers that limit the opportunities for growth.
  4. Sao Paulo struggles with the housing shortage in which about 1.2 million people live in urban favelas or corticos. Favelas are private or public lands that began as temporary squatter settlements. Corticos are abandoned buildings that are illegally occupied and are typically in precarious states of repair.
  5. Residents in Sao Paulo’s second biggest slum, Paraisopolis (which literally translates to Paradise City), have expressed a strong desire to stay rather than be relocated. This resistance has inspired official Brazilian policy to shift towards slum upgrading rather than slum eradication. Slum upgrading proves to be easier, cheaper, and not to mention, more humane.
  6. One of Sao Paulo’s major goals was to bring electricity, effective sanitation and clean water services to as many urban areas as it could afford; now, almost all favelas have access to clean water services and electricity.
  7. While Paulistanos generally have adequate access to water resources, the water supply system loses about 30 percent of water in distribution.
  8. In 2006, the Sao Paulo Municipal Housing Secretariat created an information database system with the ability to track the developmental statuses of favelas and other precarious settlements. This system allows for the effective targeting of slum upgrade efforts and environmental cleanups.
  9. Transportation issues are amongst the most noticeable signs of Sao Paulo’s difficult infrastructure. The average Paulistano spends about 2 hours per day in traffic jams which costs the city about $23 billion a year. On the other hand, public transportation is notoriously overpriced, overcrowded and uncomfortable.
  10. Government corruption is also known to be a major contributor to the slum-like conditions in Sao Paulo. Frustration with the government’s unmet urban needs have even resulted in protests; however, rather than a source of concern, these protests may be a sign of progress. Local and national governments have responded with efforts to promote transparency of government spending as a a result of these demonstrations.

Favela Reduction

While there have been tremendous efforts towards upgrading the favelas in Sao Paulo, these areas still have a long ways to go.  It is extremely necessary for a collective promotion for the inclusion of both local community leaders and government agencies so as to effectively reduce the number of favelas in Sao Paulo.

– Lolontika Hoque
Photo: Flickr

Philippines Acts to Combat Violence Against Children

Philippines Acts to Combat Violence Against ChildrenA 2016 survey conducted by UNICEF and the Philippine government found that eight out of 10 children suffer some form of physical or psychological abuse. More than 60 percent of the cases of physical violence happen at home, with slightly more victims among boys than girls. Also during this time, UNICEF and the Philippine Council for the Welfare of Children found in their first nationwide survey of children and youth aged 13-24 that one in five respondents had been sexually violated. Less than one percent of victims of child abuse report these cases to authorities.

The Philippine Plan of Action to End Violence against Children

Since these findings, the Philippines have acted to combat violence against children and have made great strides. The Philippine Plan of Action to End Violence against Children (PPAEVAC) of the Republic of the Philippines (2017-2022), formulated by the government’s Council for the Welfare of Children and UNICEF, seeks to “break the cycle” of violence by guaranteeing access to services, building the capacity of children to protect themselves, improving legislation, and serving as a guide for policymakers and donors.

The PPAEVAC responds to Filipino children’s need for protection, care and development. The act is a multi-sectoral road map designed for the progressive reduction of violence against children and a part of the government’s general commitment to building an enabling environment that respects, protects and fulfills the rights of all children.

Furthermore, the effort also reflects the government’s recognition of children’s rights to survival, development, protection and participation, and their right to attain their full potential, as enshrined in the United Nations Convention on the Rights of the Child. It serves as an effective blueprint addressing the proliferation of various types of violence against children, including sexual abuse and exploitation.

Eight Key Strategies

As the Philippines acts to combat violence against children, eight key strategies in the PPAEVAC aim to address areas necessary to break the cycle of violence and achieve the vision of its complete termination. These strategies include:

  1. Promotion of evidence-based parenting program and life skills and personal safety lessons
  2. Capability building
  3. Comprehensive Communication for Behavior Change (C4BC) strategy
  4. Children and adolescent participation/mobilization
  5. Direct service delivery
  6. Monitoring, evaluation and research
  7. Policy advocacy
  8. Institution building

It’s already difficult to track abuses by relatives and acquaintances against children, but one of the biggest challenges ahead for the plan is the Duterte government itself. Its murderous “war on drugs” has brought untold misery to the families of mostly poor urban dwellers.

According to government data, the campaign against alleged drug dealers and users started in 2016, and has since contributed to the deaths of more than 12,000 people. Children have been among those killed by police and police-backed vigilantes. Many have been targeted, while others are what some government officials call “collateral damage,” or bystanders in police shootings.

Violence by state officials should not be a part of the large numbers on child violence. As the Philippines acts to combat violence against children, the PPAEVAC provides significant hope that violence against Filipino children has an end.

– Ashley Quigley
Photo: Flickr

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Five Important Facts to Know about Girls’ Education in Nigeria

Girls’ Education in Nigeria
Like in many developing nations, the fight for girls’ education in Nigeria has been an ongoing battle against poverty, the costs of schooling and long-held notions of the unimportance of educating girls. To understand the progress that has been made and the struggles that persist in Nigeria, here’s what you need to know:

Five Facts About Girls’ Education in Nigeria

  1. Enrollment and Completion of Primary School Improving. Although Nigeria continues to face struggles getting its young females to enter and remain in school, the nation has made considerable progress in recent years. According to the World Bank’s Education Data, the number of girls enrolled in primary school increased from 79 percent to 92.3 percent between 2008 and 2013. Enrollment of boys likewise rose, from 89 to 95.2 percent, continuing to remain slightly higher than that of girls. In addition, rates of primary school completion are also on the rise. In 2008, 64.1 percent of girls (while, by comparison, 75.3 percent of boys) completed primary school; in 2010, those numbers had risen to 68.9 and 78.4 percent, respectively. Despite progress, there is still considerable room for improving girls’ education in Nigeria — especially regarding school retention. In fact, a significant portion of girls enrolled in primary school are not completing it.
  2. Financing Education. Officially, education is free and mandatory for all children in Nigeria, both boys and girls, between the ages of six and 15. That being said, Adamu Hussaini, Nigeria’s Secretary of Education, said in 2017 that an estimated 10.5 million kids were either not enrolled in or not regularly attending school. Many schools, especially rural ones, continue to charge unofficial school fees. The reasons for not attending school for girls range from ideological beliefs about the unimportance of education for females to being unable to afford the unofficial school fees. Beliefs persist that girls’ education in Nigeria is unimportant. Many who are willing to pay school fees for their sons would rather keep their daughters at home and working. However, eliminating these unofficial fees can be one of the easiest ways to increase female enrollment and attendance. Groups like the Global Partnership for Education and the Peace Corps offer scholarships, paying the school fees for a girl whose parents promise to let her complete her mandated 10 years of education.
  3. The Role of Mentorship. The importance of mentorship and having female role models should not be underestimated. As more women pursue higher education and enter careers, younger girls will have role models to show them that higher education is attainable for females. Also, these role models will demonstrate that pursuing education opens doors to opportunities otherwise forever unavailable to girls. Many schools in Nigeria hoping to increase female attendance have begun peer mentorship programs in which older girls connect with younger ones, giving the former an immediate sense of meaning for their education (helping younger kids) and the latter both academic and social role models to hopefully encourage them to keep coming to school.
  4. Women at Nigeria’s Universities. Increased participation of women in the education sector is also visible at the university level — when Nigeria gained independence in 1960, only 7.7 percent of Nigeria’s college students were female. By 2001, that number had skyrocketed to 41.7 percent and it continues to rise. In 2009, 45 percent of all university students in Nigeria were female.
  5. Societal Benefits of Educating Women. Levels of female education correlate directly with improved health and an overall increased quality of life. Educated women are more likely to seek proper medical care both for themselves — especially maternal care — and their children. Likewise, higher rates of female education correspond with lower HIV and STD rates. Women also are less likely to get married or give birth as teenagers if pursuing an education. The benefits of extending education to women reach not only those specific women, but society as a whole. Many experts agree that focusing on women’s education is one of the best investments a developing nation can make, for female education rates are directly correlated with national economic growth. Educated women are more likely to hold stable jobs, less likely to be in poverty, and more likely to contribute to the overall economy.

Strides Since Independence

Girls’ education in Nigeria has made tremendous strides during the 60 years since Nigeria gained independence. More girls than ever are attending and completing primary school as well as pursuing higher education. But the fight for education equity in Nigeria is not over.

By continuing to advocate for the importance of girls’ education, encourage older educated women to act as role models for younger generations and help finance girls’ education, Nigeria can and will reap the benefits associated with girls’ education.

– Abigail Dunn
Photo: Flickr

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10 Facts About Third World Countries or Developing Nations

Facts About Third World Countries
Third world countries all over the world are struggling to have their voices heard due to widespread negative perceptions and stereotypes. Many areas of the globe lack all the facts about third world countries, both knowing where such nations are located as well as efforts from within to push forward. Here are 10 facts about third world countries that will help give a better look at these developing nations.

10 Facts About Third World Countries

  1. The term “third world countries” was first used during the Cold War. This term was used to specify the countries that didn’t side with NATO/capitalism or at the time the Soviet Union/communism. Since the Soviet Union no longer exists, the term “third world countries” has become more open to interpretation in today’s society. The new generic meaning for third world countries are poor and underdeveloped nations. Such descriptors can refer to poor education, infrastructure, improper sanitation and/or poor access to healthcare.
  2. Third world countries can be categorized in different sections. Third world countries can be measured up in five different sections — political rights and civil liberties, gross national income, human development, poverty and press freedom. It is likely to see the same countries in each of these sections. For example, Somalia is listed under political and civil liberties, gross national income, poverty and press freedom.
  3. The term “third world” is becoming more and more out of date. Since the dissolution of the Soviet Union, the interpretation of “third world countries” has become more open. With this phrase being so open it is easier to see the holes within. In an article by NPR, Marc Silver asked, “Who is to say which part of the world is “first?” And how can an affluent country like Saudi Arabia, neither Western nor communist, be part of the Third World?” To replace the term, “third world countries,” others are using phrases such as “developing world,” “developing countries” or “majority world.” There still isn’t a global consensus on which term to use.
  4. There are 166 developing countries. According to the International Congress of Qualitative Inquiry, there were approximately 166 developing countries; of these 166 developing countries, 52 are African countries; currently, Africa has a total of 54 countries.
  5. Water pollution is a growing concern in developing countries. More people die every year from unsafe water than from any form of violence. On January 10, 2018, the head of United Nations Environment and the Director General of the World Health Organization signed an agreement to improve joint actions to tackle pollution concerns around the world. Along with this agreement, the organizations also seek to improve coordination of waste and chemicals management, water quality, and food and nutrition issues.
  6. Health and nutrition resources are minimal. When determining whether a country is “developing,” there are three criteria to take into account. These three criteria are low-income, human resources and economic vulnerability. At least half of the world’s population lacks access to essential health services. Along with poor access to health services WHO reported that two billion people lack key micronutrients in their diet and 88 percent of countries suffer from either two to three forms of malnutrition.
  7. Eighty percent of the world lives on $10 or less a day. Nearly two-thirds of the global workforce is listed under an ‘informal’ economy. Informal work means that these employees don’t have proper social protection, rights at work and adequate working conditions. In fact, the United Nations reports that “93 percent of the world’s informal employment is in emerging and developing countries.” Of this number, men, covering 63 percent, are most likely to obtain informal employment. The United Nations concluded that those living in rural areas are twice as likely to be informally employed than those in urban areas.
  8. There exists a higher percentage of violence against women. One in three women will globally experience physical or sexual violence by a partner or non-partner. This is true in any country, but the World Health Organization reported that those in developing countries are still more likely to experience this violence. It is reported that 36.6 percent of women in the Africa region and 37.7 percent of women in the South/East Asia region are most likely to undergo physical or sexual violence.
  9. Three hundred eighty-seven million children worldwide live in poverty. Of all the children in the world, 19.5 percent live in extreme poverty while the child mortality rate has improved in recent years. In 1990, there were 93 deaths per every 1,000 live births. In 2016, this amount dropped to 41 deaths per every 1,000 live births. According to UNICEF’s most recent report, about 15,000 children under five still die every day.
  10. Seventy-nine percent of people in third world countries live without electricity. It is seen that there is more harm than good for most who are living without electricity. Those who live without electricity are producing indoor air pollution through burning fires. This causes up to 3.5 million deaths per year.

Whether it is called “third world” or “developing,” countries all over the world are pushing to grow and move forward. Without proper funding and education, it becomes increasingly difficult to improve as stated in these 10 facts about third world countries. Visit Act Now on The Borgen Project website to find 30 ways to help those trying to overcome obstacles succeed.

– Victoria Fowler
Photo: Flickr

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How Improving Governance Helps Growth in Developing Countries

How Improving Governance Helps Growth in Developing Countries
It’s all too true that in most developing or vulnerable countries, local or national governments are tyrannical and corrupt. These governments have a propensity to abuse power, favor the rich and ignore the oppressed. However, by improving governance in the developing world, there is hope that unethical practices will be removed and replaced with unprejudiced laws that will fairly benefit everyone.

Problems Surrounding Corrupt Government

Numerous problems surrounding nefarious practices in underdeveloped countries stem from a lack of morality, discriminatory systems and misuse of power. The World Bank reports that in vulnerable countries, a disparate sharing of authority is a common problem that causes countries to stay in a state of impoverishment rather than move toward more progressive procedures that would allow for quicker growth and sustainability.

Unfortunately, it’s easier for the already-powerful leaders to resist change rather than consider the development of new policies for improving governance to benefit the whole society, regardless of economic class.

Additionally, there are many other factors that contribute to shady practices in the governments of developing countries. One of these practices is patrimonialism, which is defined in the Encyclopedia Britannica as a “political organization in which authority is based primarily on the personal power exercised by a ruler, either directly or indirectly.” This means that too much power can easily be granted to one person or group of persons (oligarchy), rather than having different governmental branches to limit what can and cannot be done.

What Steps Can be Taken Towards Improving Governance?

In a patrimonialistic society, the land or state is “owned” by a leader, granting that person the freedom to do as he, she, or they please. This power structure contributes to the cycle of poverty — wealthy land is distributed to the other wealthy people, allowing those choice few to access the best schools, homes and healthcare; on the other hand, the slums are given to the lower class, eliminating chances to thrive in a fair economy. Ultimately, this system halts economic growth for all the citizens.

The OECD Observer gives two good examples of a patrimonialistic society; the first being Morocco, where admittance to bureaucracy protects access to economic benefits, and the next being in the Philippines, where political sovereignty can be bought and sold.

Citizen-Based Elections

A great way to combat corruption, poverty and improve economic growth is by initializing citizen-based elections. According to USAID, more than half of the world’s populace live under only partly free governments, which limits their civil liberties, causing the inability to freely engage in politics. In democratic elections, the people are granted a voice in choosing who they wish to run their government.

USAID easily lays out the course for democratic elections. The steps include freedom of speech, association and assembly; elections as an essential tool to bolster political openings and cooperation; assembling advocates and describing different political platforms to the public and encouraging political debate.

Education

Another step toward improving governance is creating equal educational opportunities for all people. A large problem in the political sphere of third-world countries is the lack of education that causes many citizens who live in poverty to not fully understand politics; in turn they lack the skills to actively participate in events such as elections or assemblies.

Not only will education improve political understandings, but it will create jobs and give students the skills needed to be seen as valuable by future employers, improving economic growth and sustainability. With higher education comes higher knowledge and realization, skills that permit citizens to see and understand what areas in their countries need change.

Public Policy and Building Democracy

One of the best ways to promote better government is through improving public policy and actively working on building a democracy. In the developing world, the people and citizens are often ignored, and their opinions are thought to be arbitrary and unimportant to those high on the political spectrum.

However, in a democratic society, the people get to vote in elections for issues such as industrial projects and new laws. To help aid in understanding public policy and democracy, The World Bank created the Governance Global Practice, which aims to initiate trust between the government and the people.

Despite all of the concerns facing governments in third-world countries, these nation-states are not hopeless. Many countries work towards improving governance and government practices. In fact, organizations such as The World Bank, USAID and the United Nations provide hope for those searching for a better quality of life, and thereby foster countries to work towards a brighter future.  

– Rebecca Lee
Photo: Flickr

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How Infrastructure Investments Alleviate Poverty

Infrastructure Investments Alleviate PovertyOn Friday, Sept. 25, 2015 the U.N. General Assembly embarked on a milestone in development history. Its new Sustainable Development Goals (SDGs) set an ambitious agenda to work toward ending extreme poverty and boosting prosperity by 2030. The SDGs’ platform consists of a collection of 17 global goals each aimed at addressing economic and social issues in developing countries. One such goal was infrastructure, as it has been proven in many different countries that infrastructure investments alleviate poverty.

How Infrastructure Investments Alleviate Poverty

The Industry, Innovation and Infrastructure goal aims to “build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.” Infrastructure is the backbone of any country as it generates jobs, boost economic growth and improves the quality of life for the poor.

Take, for example, a hospital in the Democratic Republic of Congo that needs electricity to ensure the safe and healthy delivery of a newborn. A young, rural Cambodian girl needs to have a safe road to walk to school and Bangladesh needs clean water for the essential livelihoods of its citizens. These are just a few of the myriad of ways that infrastructure investments alleviate poverty.

The Costs of Infrastructure Resistance

However, when governments push back on certain infrastructure plans, it comes at an enormous social and economic cost. Roughly 663 million people lack access to clean water, 2.4 billion people do not have adequate sanitation, one-third of the world’s population is not served by an all-weather road and over 1.1 billion people, or almost 16 percent of the world’s population, still have no access to electricity.

The Industry, Innovation and Infrastructure goal has seen a tremendous impact in diminishing these issues and others in emerging countries. Mobile services have spread rapidly and have allowed people to join the global information age. In 2016, 85 percent of people in the least developed countries were covered by a cellular signal. Transportation services also drive economic development and generate wealth and employment. In 2015, the global economic impact of air transport was an estimated $2.7 trillion, or about 3.5 percent of the global gross domestic product.

Infrastructure to Overcome Debt Cycles

One recessive point in global infrastructure came in the wake of the 2008 Great Recession. The West began exporting debt to emerging markets while also purchasing debt from emerging markets. Western fund managers sold forms of credit to developing markets and the total debt rose to $49 trillion in 2014.

Unfortunately, many fail to realize that selling endless cycles of debt will make it incredibly difficult for emerging countries to service their own dollar-dominated debt at home. They will be unable to pay back these loans and growth ultimately stagnates. Fortunately, multilateral development banks are uniquely placed to assist countries in closing these long-term financing gaps. They can help identify failing market areas and create incentives in for the private sector.

Infrastructure investments alleviate poverty in developing countries through the application of projects such as bridges, roads, communication, sewage and electricity. These projects enable both public and private investors to gain on capital appreciation. While servicing the vital infrastructure needs of billions of people, these countries will, along with their booming populations, generate significant prospects for long-term growth and profit for generations to come.

– Aaron Stein
Photo: Flickr

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The Health Impacts of Cooking Fuel in Developing Countries

Cooking FuelFinding a reliable and clean source of cooking fuel in developing countries is a persistent obstacle for poor households. From using animal dung in East Asia to wood and charcoal in Africa, the simple process of cooking varies greatly in both safety and reliability across the world. Adverse health effects from household smoke have encouraged governments to provide affordable and cleaner options for cooking fuel.

Cooking Fuel in Developing Countries

The youngest and most vulnerable in the developing world are most likely to benefit from cleaner cooking fuels. Since indoor air pollution is most prevalent with the extremely poor — those living on less than $1 a day — providing cleaner options for cooking has disproportionately positive health effects for them.

Traditionally, coal and biomass have been the primary sources of cooking fuel in developing countries and have been particularly damaging in countries that lack access to other viable options. Unhealthy levels of air pollution in homes lead to premature deaths every year. The prime culprit is smoke from coal and wood in poorly ventilated kitchens.

Convenience Over Safety

Until recently, however, convenience has trumped health and environmental concerns. Despite recent efforts to modernize energy use in the developing world, the number of people reliant on solid fuels, such as wood, is expected to grow to 2.7 billion by 2030. Although the adverse health effects of indoor air pollution contribute to 2.6 million deaths per year, there has been major resistance from people accustomed to their traditional way of cooking.

Established types of cooking fuel in developing countries, if not healthy or environmentally friendly, are hard to usurp as the primary source for energy use.  Both India and Brazil have approached the problem through promoting liquefied petroleum gas (LPG) usage but from distinctly different angles.

LPG in India

For decades India has subsidized cleaner energy sources such as LPG as an incentive to transition homes from less healthy options, such as wood, charcoal and animal dung.

Although subsidies have been historically inefficient, India has made progress in providing affordable and clean fuel to households through a biometric identification system. Since 2016, India has provided 34 million households with stoves and a free cylinder of LPG.

India has focused on targeted, subsidized fuel for those needing the greatest assistance. In 2012, in response to increasing graft and black market activity, India initiated a Direct Benefit Transfer Scheme of LPG.  The subsidization program has only been possible due to access to individual bank accounts and biometric identifiers; which allows the government access to household’s income levels in order to better target various need requirements.

LPG in Brazil

Brazil, on the other hand, has focused on the market development of the LPG gas industry and promoting education to consumers. Specifically, the government’s approach to promoting efficient and healthy means of cooking has evolved into selling the public on the beneficial qualities of LPG. Rather than subsidized fuel or free LPG cylinders, Brazil has relied on educating Brazilian’s on the use of new stoves, as well as providing a free trial period.

To get accustomed to the new fuel, LPG cylinders and accompanying stoves were offered on a short-term, three-day trial. Once completed, households involved were allowed to either purchase the new cooking equipment or return it. The majority of consumers felt comfortable enough with the more modern cookware to transition to LPG usage. Direct experience with the product, instead of handouts, has been the impetus in Brazil for creating a market for cleaner cooking fuels and stoves.

Allowing poor households to see the benefits firsthand has directly created a demand for LPG. This approach of consumer development, rather than India’s direct cash transfer, could be replicated to provide cleaner cooking fuel in developing countries still reliant on wood, dung and charcoal.

The number of households who opt for cleaner and safer cooking fuel in developing countries will vary in approach. It depends on the level of poverty in the country and the policies the government, and the taxpayers, are willing to commit to.

Reducing deaths from indoor air pollution and providing a reliable source for cooking should be the ultimate policy goal of modernizing indoor fuel consumption. After all, making dinner in the developing world should not come at the price of smoke filled kitchens and declining health.

– Nathan Ghelli
Photo: Flickr