What if there was a way to invest money and change the world? The global green bond market may be the answer.
The potential of these bonds to facilitate global change is irrefutable. Green bonds are similar to other fixed-income instruments in their financial attractiveness but they are unique in their ability to provide a positive social and environmental impact.
The capital raised is dedicated to programs that benefit the environment and encourage more prosperity within nations, such as delivering clean water, promoting renewable energy sources and increasing efficiency.
Developed and developing countries alike face rising financial challenges from changing climate conditions and environmental hardships, but often it’s the poorest nations that suffer most. The green bond market finances many life-changing development strategies that support sustainable development, focusing on poverty reduction and inclusive growth. They are innovative financial tools to finance railways, roads, airports, buildings and energy and water infrastructures, while simultaneously achieving positive returns for the environment and society.
The green bond market has seen explosive growth and increased attention from investors in recent years. Launched by multilateral institutions less than a decade ago, green bonds have seen a 38 percent increase in the first half of 2017 compared to the year prior.
The Climate Bond Initiative, an international nonprofit focused on this niche, estimates that the total amount of green bonds issued in 2017 could reach upwards of $150 billion; this is a monumental increase from the $3 billion worth of green bonds that were issued in 2012.
This surge in interest can be explained by an increased desire by consumers to invest in an impact-driven market; this has caused a record number of public and private entities to join or issue green bonds.
The number, and nature, of the financial players involved in the green bond market have also contributed to the rapid growth. Development banks, such as the World Bank and the European Investment Bank, large corporations, including Apple and Intesa and sovereign states, like Poland and France, have all emerged in the green bond market.
Individual projects by each green bond issuer carry great reach. Just one project by the World Bank to improve sustainable water management in Brazil benefits 2.6 million people and provides 164,000 people with improved sanitation, enhancing the overall quality of life.
The interest that the green bond market has sparked is helping to change how investors think about their investments and how issuers think about the projects that they finance. So long as investors continue to ask questions about the expected social and environmental impacts of their investments, green bonds will continue to build a meaningful new capital market, providing financial support for environmental and sustainability initiatives around the world.
– Jamie Enright
Photo: Flickr
Philanthropic Powerhouse Warren Buffett on Poverty Reduction
Warren Buffett is known for being on the top of the world’s most wealthy list. Today, he sits at number two on Forbes 2017 Billionaires List and runs the multinational Berkshire Hathaway conglomerate. While he may be most recognizable for his wealth, Buffett is a proven philanthropic powerhouse as well. He utilizes his status around the globe as a platform to promote his philanthropic movements and build support for global aid.
In 2006, Warren Buffett made the “the biggest single gift anyone ever gave anybody for anything” when he donated $30 billion to the Bill and Melinda Gates Foundation. In 2010, Buffett coupled with Bill Gates to build The Giving Pledge, which asks wealthy individuals around the world to join them in “publicly dedicating the majority of their wealth to philanthropy.”
This year, Buffett made his largest summer donation yet of nearly $3.2 billion in one day. Buffett is one of the most philanthropic individuals in the United States and his reputation amongst the wealthy serves to boost the motivation of others to donate.
On October 3, 2017, Warren Buffett spoke about the national poverty epidemic at the Purpose Built Communities conference in Omaha. At the meeting, Buffett called on the “government and philanthropists (to) do more to ensure that poverty doesn’t remain a barrier success.”
Buffett’s call to action is not lost on the global poverty front. As part of the 1 percent of the world that owns more than the other 99 percent, Buffett’s words reverberate around the world. His recognition of the importance of government and philanthropist involvement is something that should spark action worldwide, leading to global changes in poverty reduction efforts.
Reducing poverty is a multi-faceted, multi-dimensional and cross-sectional goal that requires the support of all able members of societies. Buffett’s involvement with the Gates Foundation and The Giving Pledge exemplify his understanding of the collective power. Buffett has pledged to give more than 99 percent of his fortune to charity and has garnered similar pledges from over 170 donors in 21 countries.
With the promises of other wealthy individuals, Gates and Buffett have collected funds for humanitarian efforts around the world. His partnership with Bill Gates augments the publicity for their mutual missions to combat global issues such as poverty, hunger and human rights.
By funding and creating charity-focused endeavors, Buffett has proven his status as a powerhouse in the philanthropy sector. Buffett’s notoriety and wealth bring attention to his actions and put a global spotlight on his philanthropic efforts, to garner support for poverty reduction and encourage global humanitarian movements.
– Eliza Gresh
Photo: Flickr
The 10/90 Gap: How Can You Help?
As humanitarian issues like poverty and disease make their way into the international spotlight, there is real potential to change the responses to humanitarian crises.
Neglected Diseases
One disease which the World Health Organization claims has been overtly neglected is African trypanosomiasis, also known as sleeping sickness. The disease is present in 36 sub-Saharan African countries and is transmitted by the bite of a tsetse fly.
These flies are commonly present in rural areas where livestock, such as cattle, are kept in close proximity to humans. People in these rural areas are at the highest risk of contracting sleeping sickness, and these same people are more likely to face poverty and limited access to healthcare.
Outbreak and Epidemic
There have been multiple recorded epidemics of sleeping sickness, the most recent lasting from 1970 to 1990. After the end of this epidemic, efforts from the World Health Organization, national governments and nongovernmental organizations began to show promise that sleeping sickness could be controlled.
From 2000 to 2012, the number of new cases of sleeping sickness decreased by 73 percent, thanks in part to the contributions of the international aid community. In the World Health Organization’s Roadmap of neglected tropical diseases, the goal to eradicate sleeping sickness by the year 2020 was set. This goal is ambitious, but with the help of foreign aid and commitment of a more significant portion of the world’s health research potential, this neglected disease and others can be eradicated.
Make a Change
Sleeping sickness is only one of the many neglected tropical diseases which could be brought to an end with increased support from the international community. The simplest way to promote global health, and help to reduce the effects of the 10/90 Gap is to donate to an organization like the World Health Organization and the nonprofit affiliates they coordinate with on the ground.
The Global Disease Research group works to provide medical assistance in regions of the world where they are least accessible. One of the core ideas of the Global Disease Research group is that medicine should be universally available, and not be determined by politics, religion, race or beliefs. Donating time and resources to groups like this is the easiest way to reduce the discrepancy in global healthcare availability and research.
– Tyler Troped
Photo: Flickr
The Putting Children First Conference: Fighting Child Poverty
Africa currently faces extreme poverty. It is estimated that 233 million people in sub-Saharan Africa where undernourished in 2014 to 2016. Forty-seven percent of the population in Africa is living on less than $1.90 a day, which is the current global poverty line.
Organizations around the world recognize the issue of child poverty. As such, the Putting Children First Conference was held and attended by End Child Poverty, The Impact Initiative, U.K. Aid, the Comparative Research Programme on Poverty (CROP), the Economic and Social Research Council, the Ethiopian Research Development Institute, the United Nations and Ethiopia Ministry of Women and Children Affairs.
The objectives of the conference included:
The speakers at the event included Demitu Hambisa (Minister of the Ministry of Women and Children Affairs), Leila Pakkala (Regional Director for Eastern and Southern Africa-UNICEF), Agnes Akosua Aidoo (International Board of Trustees-ACPF), and Jane Kabubo-Mariara (Executive Director-PEP) among others.
The conference resulted in a call to action written collaboratively by the people in attendance. The call to action states six steps that should be taken to benefit children who are the most likely to be living in extreme poverty.
The Six Steps to Eradicate Extreme Child Poverty
This conference allowed people to network and take steps towards creating a better world for children living in poverty.
– Téa Franco
Photo: Google
Water Quality in Tanzania: An Ongoing Battle
In 1971, the Tanzanian government established a Rural Water Supply Program in response to a desperate need for water in the poorest areas of the country. However, it was largely unsuccessful. The program was followed by the implementation of the National Water Policy in 1991, which also proved to be ineffective.
By 2003, the World Bank intervened in Tanzania’s national water crisis, threatening to take away funding and aid if the country did not privatize its water sources. Unfortunately, this only worsened the country’s water crisis. Since then, the water quality in Tanzania remains poor despite the government claiming that access to adequate water is a basic human right.
Currently, 23 million people in Tanzania do not have access to clean water. Due to limited access locally, women and children typically spend several hours a day collecting water. Often, women face violence in their attempt to travel long distances to find water.
Several other issues are faced by the local population in relation to water. The low quality of water means that citizens continue to be plagued with waterborne illnesses. Only 15 percent of the population has access to toilets, contributing to health complications and diseases as well.
In spite of this, some policy implementations by the World Bank have proven to be somewhat successful in the last decade. The Water Sector Development Program has connected customers in urban areas to water supplies, built 539 new water points and provided 2.7 million urban residents with clean and safe drinking water by June 2014. Despite this, the most disenfranchised places in the country continue to struggle.
Organizations such as Water Aid are trying to combat the low water quality in Tanzania. Means of doing so include the use of moderately priced technologies that can have sustainable and long-term benefits.
For example, pumps often solve the issue of emptying latrines in slums. Similarly, mapping technology has the ability to record the location and condition of water areas throughout the country.
Water Aid continues to seek improvements to water quality in Tanzania. Currently, the organization is inviting drilling contractors to submit bids for a geophysical survey and drilling works for a Community Supply Scheme in Arusha, Tanzania.
– Melanie Snyder
Photo: Flickr
Water Quality in Namibia: Misled by Bottled ‘Mineral Water’
In some cities, tap water is contaminated; in others, it may be safe to drink. In cities such as Keetmanshoop and Tsumeb, it is said that all water is considered contaminated and that it is recommended to bring all tap water to a rolling boil if you wish to drink, brush your teeth or make ice cubes with it. Otherwise, it is recommended to buy capped bottled water from reputable sellers.
In cities like Swakopmund, Walvis Bay and Windhoek, the water is considered as ‘may be safe to drink’ because the water is chlorinated. This means that locals can drink water from the tap without issue. Despite this, many still choose to avoid the water due to instances of some small strains of local E. coli being present in the water. This bacteria can cause diarrhea to new visitors.
As a result of water contamination, retail chains in Namibia, such as Pick ‘n Pay, Spar and Fruit and Veg, to make significant profits selling bottled water to consumers hesitant to drink the tap water.
However, in some shops, like the Pick n’ Play in Windhoek, tap water is labeled as ‘mineral water’ and sold to the consumers unknowingly. There are very little safety measures in place to protect the consumers from being misled by the retail shops that sell bottled water in Namibia.
While explaining the water quality in Namibia and how tap water is treated in cities, Maximilian Herzog of Omaruru Beverages, a leading bottled water company in the local market, said, “nobody controls water quality at the point of use – the tap at home.” This means that from the treatment point, water can flow kilometers through unclean and old pipelines. Water remains one of the most difficult products to bottle and transport through pipelines due to accidental contamination issues. Furthermore, high chlorine levels and unbalanced mineral contents in tap water lead to unpleasant tastes.
Herzog maintains that it is important that the consumer is clearly informed with appropriate labeling and packaging on what they intend to buy, whether it be mineral water or purified water.
In order for this issue to be addressed, it is imperative for the National Standards Institute (NSI) to create regulations for bottled water sales. This will ensure that consumers are no longer misled or in danger of drinking contaminated tap water. Until then, be aware of the water quality in Namibia.
– Drew Fox
Photo: Flickr
US Helps Fight Food Insecurity in the Central African Republic
It was reported that the 500,000 people being assisted by the World Food Programme will include displaced people, refugees and students. These groups are considered to be the most disadvantaged groups in the country.
The donation will partly help fund meals in schools in order to help students achieve their educational goals more efficiently and effectively. The relationship between academic success and hunger has been widely studied, and it is often reported that students tend to perform worse in school when they are hungry.
For instance, according to the Global Citizen, it is important that students eat healthy meals in order to succeed, because the brain needs energy to understand information and solve problems. Thus, the World Food Programme’s donation to the Central African Republic will help students focus better on their studies in order to learn the skills that are necessary to thrive as adults.
Furthermore, the Central African Republic has experienced a lot of political instability throughout its history. According to the World Food Programme, “the Central African Republic has the second-to-lowest level of human development in the world.” Many of the people that have been displaced throughout the country have been affected by the violence that has been incited by various rebel groups. Furthermore, there are heightened religious tensions between such groups, which has caused approximately 600,000 people to be displaced.
However, the government of the United States is making an important effort to assist the most disadvantaged groups through the World Food Programme so that food insecurity in the Central African Republic will be addressed and solved. Then, perhaps, other issues can be solved, too.
– Emily Santora
Photo: Flickr
Counteracting Hunger in Paraguay
Paraguay is one of the poorest countries in Latin America. The poverty rate is around forty percent. U.N. Special Rapporteur, Hilal Elver, visited the country in 2016. She said, “Paraguay has struggled to address inequalities -higher than in most neighboring countries- and important segments of society are still excluded from the country’s economic development and suffer from food insecurity.”
Overall, ten percent of the population live in extreme poverty, while the number grows for people living in rural areas. Over fifty percent of indigenous peoples live in extreme poverty. The people in the rural areas suffering from poverty rely heavily on agriculture for their livelihood.
The inequalities between elite landholders and the rural poor only exacerbate the consequences of poverty. After conducting her report, the U.N. Special Rapporteur reported that 10 percent of people in Paraguay face hunger and malnutrition. This is despite the impressive economic growth and the fact that Paraguay produces food for almost nine times its population.
While other issues are to blame for the underlying causes of poverty and hunger, the outlook is a hopeful one. A lot is being done to counteract hunger in Paraguay. The country is on track to reach its goal of ending undernourishment by 2020.
Organizations such as the World Food Programme are instituting plans and projects to help fight hunger in Paraguay. Their current programs partner with other organizations, specifically those operating locally in Paraguay, to ensure food security.
Working with these vulnerable communities who not only suffer from economic inequality, but also hunger, will help the current situation in Paraguay. It is imperative that a country with vast food resources feed its people. Hunger in Paraguay should not be a problem, especially with its growing economy.
– Emilia Beuger
Photo: Flickr
Building Economic Capacity With Savings Clubs
An estimated 10 million people are involved in savings groups worldwide. By saving as a group, small sums of individual contributions add up which gives the the group significant lending power. These groups keep interest rates lower than formal banks and can help a member who is struggling to contribute rather than punish them. Many groups use funds to construct a school, clinic or well. This model allows locals to take charge of their own community’s development.
Judy, a mother of seven in Kenya, applied to Care International to become a promoter of their Group Savings & Loans programs. She understood the value of owning a business from opening a bookshop more than 20 years prior. Judy was selected to be trained as a franchisee in western Kenya. The franchise model offers benefits for both Care International and franchisees, and the model has rapidly expanded into rural communities. In 18 months, Judy has mobilized 7,552 people to join over 200 savings clubs. These groups manage a total of $193,705.
These clubs have become popular in many places including Vietnam, South Africa, Kenya, Nigeria, Ghana, Eritrea and Ethiopia. A major motivator for this type of money management is to save up for expensive cultural events. In South Africa, a funeral can cost a year’s worth of income, so four out of five people are members of savings groups focused on funding funerals. When a woman gets married in Bangladesh, a lavish celebration and dowry is expected, which requires the bride’s family to save a significant amount of money.
An assumption that many people make is that the poor cannot afford to save money. Actually, smart management of money is crucial when there is no room for error. In addition to the lack of money, the poor must provide for themselves with an unpredictable, inconsistent income. Savings clubs have proven to be an effective strategy for utilizing the power of community and money management to improve the financial situation of the poor.
– Kristen Nixon
Photo: Flickr
Social Impact and the Green Bond Market
The potential of these bonds to facilitate global change is irrefutable. Green bonds are similar to other fixed-income instruments in their financial attractiveness but they are unique in their ability to provide a positive social and environmental impact.
The capital raised is dedicated to programs that benefit the environment and encourage more prosperity within nations, such as delivering clean water, promoting renewable energy sources and increasing efficiency.
Developed and developing countries alike face rising financial challenges from changing climate conditions and environmental hardships, but often it’s the poorest nations that suffer most. The green bond market finances many life-changing development strategies that support sustainable development, focusing on poverty reduction and inclusive growth. They are innovative financial tools to finance railways, roads, airports, buildings and energy and water infrastructures, while simultaneously achieving positive returns for the environment and society.
The green bond market has seen explosive growth and increased attention from investors in recent years. Launched by multilateral institutions less than a decade ago, green bonds have seen a 38 percent increase in the first half of 2017 compared to the year prior.
The Climate Bond Initiative, an international nonprofit focused on this niche, estimates that the total amount of green bonds issued in 2017 could reach upwards of $150 billion; this is a monumental increase from the $3 billion worth of green bonds that were issued in 2012.
This surge in interest can be explained by an increased desire by consumers to invest in an impact-driven market; this has caused a record number of public and private entities to join or issue green bonds.
The number, and nature, of the financial players involved in the green bond market have also contributed to the rapid growth. Development banks, such as the World Bank and the European Investment Bank, large corporations, including Apple and Intesa and sovereign states, like Poland and France, have all emerged in the green bond market.
Individual projects by each green bond issuer carry great reach. Just one project by the World Bank to improve sustainable water management in Brazil benefits 2.6 million people and provides 164,000 people with improved sanitation, enhancing the overall quality of life.
The interest that the green bond market has sparked is helping to change how investors think about their investments and how issuers think about the projects that they finance. So long as investors continue to ask questions about the expected social and environmental impacts of their investments, green bonds will continue to build a meaningful new capital market, providing financial support for environmental and sustainability initiatives around the world.
– Jamie Enright
Photo: Flickr
Child Labour Impedes Education in Cyprus
It is difficult for the Cyprus government to recognize the necessity of basic education in Cyprus when their Gross National Income (GNI) has decreased significantly from $32,560 in 2009 to $23,680 in 2016.
Cyprus is divided into two communities with separated laws and ideals. The Republic of Cyprus provides free basic education to children over age 3 or 4, whereas the Turkish Republic only allows children between ages 6 and 15 to access free education. Considering both communities make basic education accessible to the poor is a positive step forward.
However, one thing both communities agree upon is that child labour should not be completely eradicated, only monitored, so that children are working in acceptable conditions with an agreeable salary. Their laws state that only children 15 years and older are permitted to work any job, rather than attend school. It is also stated that a child must be at least 11 older in order to work after-school hours.
Although children in Cyprus are not being treated unfairly, allowing them to work is only encouraging them to drop out of school and feel as if education in Cyprus is not necessary or of any value.
UNICEF enforces that child labor worsens, or at least continues, the endless cycle of poverty by preventing children from receiving opportunities with higher pay and status. Although their education may be affordable for families, it is socially conditioned that the children must aid their family financially. Despite the opportunities that may be extended to them upon completing their education, many disregard the importance of education.
The denial of education is a threat to children’s basic human rights and puts Cyprus’s economy at risk with long-term consequences. Therefore, organizations like UNICEF are devoted to ending societally conditioned attitudes that permit child labour. They make the effort to bring awareness to the effects of disregarding basic education to countries like Cyprus.
– Brianna White
Photo: Flickr