Home to millionaires, a renowned casino and a prestigious Formula One Grand Prix, Monaco claims another headlining reality: the Monaco poverty rate is zero.
In order for any country to have a zero percent poverty rate, there must be zero percent of the population living under the international poverty line of U.S. $1.25 a day. So, why is the Monaco poverty rate zero? This feat is not accomplished easily; it is a combination of ideal conditions that have propelled Monaco to achieve its flawless poverty rate.
The Principality of Monaco is situated in the west of Europe along the French Riviera and bordered by France and the Mediterranean Sea. Monaco is aptly named a principality because its monarch takes the title of prince or princess. The current Prince of Monaco is Prince Albert III, who continues the Grimaldi family reign of more than 700 years.
This country is known for its beautiful surroundings and coastline, which helps draw a wealthy population, but its size plays an important role in the economy as well. Monaco is the second-smallest country in the world, after the Vatican City. It is a tiny two-square kilometers in size and the most densely-populated country in the world.
The number of residents this country can support is limited and its picturesque landscape draws people from around the world. Monaco is home to 30,645 residents. Only 16 percent of the residents are Monegasque (natives of Monaco), the majority is French and the rest come from nearby countries and outside. While Monaco’s size tightens the population, its economic strength adds additional incentives for residents.
Monaco’s current economy was strengthened by the historic decisions of Prince Charles III, known as the founder of Monte Carlo. Charles III ensured Monaco’s economic strength by taking advantage of gambling laws to build the Socièté des Bains de Mer, a company of a few hotels, a theater and a casino in 1863. The Monte Carlo casino became the most famous of these assets.
When gambling was banned elsewhere, the casino became a vacation of choice for the worlds wealthy, drawing in thousands of tourists. Charles the III also forged an agreement with France to install the first railroad across the principality as infrastructure to support the growing tourism market. Charles III attracted additional foreign investments when he established a zero income tax.
Why is the Monaco poverty rate zero? Tax incentives, location and the international popularity of Monte Carlo secured Monaco’s popularity with the wealthy and ignited the country’s tourism industry. Today, one-third of Monaco’s population makes more than $1 million to the point that Monaco’s GNI per capita is $186,080, the highest in the world.
Interestingly much of the working class in Monaco does not actually live there. Daily, more than 30,000 French and 5,800 Italian nationals travel to Monaco to work. This lends to the enormity of the private sector industries, which account for 86 percent of the labor force in Monaco. Monaco has developed into a destination for research centers, and 22 percent of the labor force works in scientific and technical activities, including administration and support services. The tourism industry accounts for 11 percent of the country’s economy, and the gaming industry 4 percent. The prince also guarantees all of the residents life-long employment, so there is nearly zero unemployment.
Monaco has the ideal combination of geographic, economic and residential dynamics to allow and support a zero percent poverty rate. The size of the country limits the amount of habitable space the country can offer and the landscape and world-renowned events like the Grand Prix give rise to millionaire inhabitants. The fiscal qualifications for residents in Monaco are set by the real estate prices while tax incentives provide a desirable buffer. Monaco builds its wealth on the investment of the worlds wealthy and maintains it through value-added tax revenues from established businesses. These factors have propelled Monaco’s reputation as the land of the millionaires and give insight into the Monaco poverty rate being zero.
– Eliza Gresh
Photo: Pixabay
Why the Monaco Poverty Rate is Zero
In order for any country to have a zero percent poverty rate, there must be zero percent of the population living under the international poverty line of U.S. $1.25 a day. So, why is the Monaco poverty rate zero? This feat is not accomplished easily; it is a combination of ideal conditions that have propelled Monaco to achieve its flawless poverty rate.
The Principality of Monaco is situated in the west of Europe along the French Riviera and bordered by France and the Mediterranean Sea. Monaco is aptly named a principality because its monarch takes the title of prince or princess. The current Prince of Monaco is Prince Albert III, who continues the Grimaldi family reign of more than 700 years.
This country is known for its beautiful surroundings and coastline, which helps draw a wealthy population, but its size plays an important role in the economy as well. Monaco is the second-smallest country in the world, after the Vatican City. It is a tiny two-square kilometers in size and the most densely-populated country in the world.
The number of residents this country can support is limited and its picturesque landscape draws people from around the world. Monaco is home to 30,645 residents. Only 16 percent of the residents are Monegasque (natives of Monaco), the majority is French and the rest come from nearby countries and outside. While Monaco’s size tightens the population, its economic strength adds additional incentives for residents.
Monaco’s current economy was strengthened by the historic decisions of Prince Charles III, known as the founder of Monte Carlo. Charles III ensured Monaco’s economic strength by taking advantage of gambling laws to build the Socièté des Bains de Mer, a company of a few hotels, a theater and a casino in 1863. The Monte Carlo casino became the most famous of these assets.
When gambling was banned elsewhere, the casino became a vacation of choice for the worlds wealthy, drawing in thousands of tourists. Charles the III also forged an agreement with France to install the first railroad across the principality as infrastructure to support the growing tourism market. Charles III attracted additional foreign investments when he established a zero income tax.
Why is the Monaco poverty rate zero? Tax incentives, location and the international popularity of Monte Carlo secured Monaco’s popularity with the wealthy and ignited the country’s tourism industry. Today, one-third of Monaco’s population makes more than $1 million to the point that Monaco’s GNI per capita is $186,080, the highest in the world.
Interestingly much of the working class in Monaco does not actually live there. Daily, more than 30,000 French and 5,800 Italian nationals travel to Monaco to work. This lends to the enormity of the private sector industries, which account for 86 percent of the labor force in Monaco. Monaco has developed into a destination for research centers, and 22 percent of the labor force works in scientific and technical activities, including administration and support services. The tourism industry accounts for 11 percent of the country’s economy, and the gaming industry 4 percent. The prince also guarantees all of the residents life-long employment, so there is nearly zero unemployment.
Monaco has the ideal combination of geographic, economic and residential dynamics to allow and support a zero percent poverty rate. The size of the country limits the amount of habitable space the country can offer and the landscape and world-renowned events like the Grand Prix give rise to millionaire inhabitants. The fiscal qualifications for residents in Monaco are set by the real estate prices while tax incentives provide a desirable buffer. Monaco builds its wealth on the investment of the worlds wealthy and maintains it through value-added tax revenues from established businesses. These factors have propelled Monaco’s reputation as the land of the millionaires and give insight into the Monaco poverty rate being zero.
– Eliza Gresh
Photo: Pixabay
Reproductive Health App for Youth in Rwanda
Tantine is an app that has been developed for youth in Rwanda. It was created by Sylvie and Sylvain Muzungu Uhirwa to tackle the issue of lack of reproductive and sexual health information. A barrier to sexual and reproductive health information has teens in Rwanda vulnerable to unintended pregnancies and diseases, which can hinder their ability to complete their education as well as find stable employment in the future.
Sylvie and Sylvain Uhirwa are twin medical students at the University of Rwanda who originally won the Youth Spark Innovation Grant in 2015. This grant is an initiative from the Resilient Africa Network in Partnership with USAID and the Makerere University School. It has helped them to build a website containing reproductive health information as well as youth mentorship opportunities.
As one of four initiatives chosen at the iAccelerator challenge 2017, the pair received $10,000 to further develop Tantine. Half of the funds went to developing the Android app and website content, as well as to continue to advance and develop the platform.
The app was recently shared in the Mahama camp of 50,000 Burundian refugees. The app for youth in Rwanda, specifically in the camp, gives reproductive health information via the web. Tantine works with a medical professional and psychological team to deliver this education, mentorship and counseling services.
Sylvie has stated that members in the camp do not have consistent access to wi-fi and do not own smartphones, so “…that’s why we thought of bringing those tablets and establishing a centre where they come and then access the internet in the camp. So we are going to equip them with those tablets and then a router with wi-fi.”
Therese Karugwiza, a gender and human rights program specialist at UNFPA, has stressed the importance of Tantine also targeting youth who may not be in school, as it is crucial that they also have access to this information. By taking Karugwiza’s account into consideration, the Uhirwa twins are putting Rwandan youth on a multimodal track to better reproductive health.
– Gabriella Paez
Photo: Flickr
Harvard Program Teaches the Importance of Global Education
The program is called the International Education Policy (IEP) and its aim is to teach students a wide variety of understanding so that graduates can help multiple groups of students around the world. Students learn things from how to improve girls’ education to ways to deliver HIV/AIDS education. Students also learn to design their own innovative programs for schools and how to effectively use those programs to improve the quality of education. Other things that the students learn is how to promote peace, teach about relevant issues and empower students.
Some IEP graduates work with nonprofit organizations such as UNICEF, Save the Children and the World Bank. As education specialists within these organizations, they are policy makers for education worldwide. Some graduates also act as social entrepreneurs and create their own organizations to help with global education.
One graduate of the program, Sara Ahmed, co-founded the Elm International School in Alexandria, Egypt. Ahmed started the school with three goals that she wanted the school to meet. She wanted it to be a student centered environment, use technology as a tool and be internationally minded while still being locally rooted. Ahmed said in an interview, conducted by the Harvard Graduate School of Education, “I wanted a school that I would dream of for my own children.”
Another graduate, Jeff Decelles, started a program called Ragball International, which is based in South Africa. This program takes soccer balls that are created with thrown away plastic by local youths and sells them internationally. The youths making the ragballs also participate in a program that teaches them how to save and set financial goals. The program also teaches students the importance of recycling and re-enforcing the positive impact that reusing has on the environment.
There are many more positive steps that graduates of the IEP program are making towards global education. The most important outcome of this program is that it promotes the importance of global education. With more teachers equipped with knowledge and initiative to make a difference in global education, they can help improve education for students worldwide.
– Deanna Wetmore
Photo: Google
The History of Hurricanes in Puerto Rico
Irma has dethroned Hurricane San Felipe II as the worst hurricane in the island’s history. San Felipe II, also a category 5, made landfall on southeast Puerto Rico on September 14, 1928 with sustained winds of 160 mph—a full 25 mph less than Irma. It sustained its category 5 status as it swept across the island over an 18-hour period. In regions the eye of the storm passed through, whole towns were literally blown off the map, and almost every building on the entire island sustained some sort of damage. Sugar cane factories were swept away along with acres upon acres of coffee crops, decimating Puerto Rico’s already struggling economy. It took nearly a decade for the island to recuperate from the effects of San Felipe II.
Hurricanes are a cross Puerto Rico has always had to bear, experienced approximately every three years and making up nearly 25 percent of the island’s annual rainfall. Locals are of course familiar with the history of hurricanes in Puerto Rico, but rebuilding after these horrific forces of nature is still a daunting task. Of the 70 percent of people experiencing power outages in the aftermath of Irma, some are expected to be without electricity for four to six months.
This news does not bode well for the U.S. territory, which is already contending with a suffocating debt crisis. With intense power outages threatening Puerto Rico’s already disintegrating infrastructure, the aftermath of Hurricane Irma threatens to exacerbate the fragile economy even further. Thankfully, the National Guard and the Federal Emergency Management Agency were quick to spring into action to deliver immediate assistance to Puerto Rico and surrounding regions. With time and continued aid, Puerto Rico can begin to recover and build anew.
– Micaela Fischer
Photo: Flickr
Examining the Causes of Poverty in Mauritania
The causes of poverty in Mauritania are linked to both geographical inevitabilities and the immense corruption taking place at the government level. The country has experienced a dramatic 20-year drought, which has caused widespread desertification. Approximately 90 percent of the nation is now considered desert land, which has inevitably caused major problems for the small rural population that is scattered across it.
Nomadic communities have declined in population as they struggle to adjust to the new environment they find themselves in. New shantytowns have arisen as a result, which offer poor sanitation and a lack of basic water needs. Donkeys carrying containers are the main method of water transportation and failed sewage systems frequently contaminate the ground supply.
Corruption is another one of the major causes of poverty in Mauritania, which has prevented the country from exploiting its resources – these include fish, minerals and livestock. Economic policy is unstable and inconsistent, preventing any major investment from Europe or the Arab world. Educated Mauritanians mostly leave the country to work in the Gulf States, where opportunities abound by comparison.
Despite 170,000 hectares of agricultural land, Mauritania is food insecure as a result of this corruption. Public officials almost never face recrimination for usurping public money; as a result, the country starves. About 26 percent of Mauritanians in the lean season – where rainfall is scattered – do not get the basic foodstuffs they need to survive.
Nongovernmental organizations (NGOs) are working to improve the situation. The World Food Programme has implemented a distribution system where they provide two meals a day in rural areas, focusing on areas where malnutrition is high and children are unable to attend school. The changing climate is also being addressed. Supplementary feeding is being provided for pregnant women and young mothers in areas enduring the shock of a climate shift.
The causes of poverty in Mauritania are both manmade and natural. The nation’s shifting geography and desertification have devastated rural communities and worsened hunger and child mortality. Corruption acts in tandem with this to worsen the situation and has left Mauritania unable to fully exploit is significant natural resources to dig itself out of its poverty trap. The work of NGOs like the World Food Programme offer a glimmer of hope for the nation to begin to raise itself out of poverty.
– Jonathan Riddick
Photo: Flickr
Why Is Trinidad and Tobago Poor?
A lack of economic diversification and overdependence on petroleum and natural gas are some of the most important factors holding back Trinidad and Tobago‘s economy. With oil and gas constituting 80 percent of exports and about 40 percent of the gross domestic product (GDP), the island nation has clearly devoted much of its economy to the sale and manufacturing of these natural resources. This leads to several problems.
Oil and gas prices have been in an overall decline over the past several years, so Trinidad and Tobago’s economy has suffered from job loss, reduced tax revenue and reduced development in human capital. These natural resources are also nonrenewable, meaning that they will eventually run out. Trinidad and Tobago’s government has done little to ensure that the country is ready to expand its economy beyond oil and gas once the underground reserves run dry. The overall lack of a business environment to stimulate entrepreneurs is one of the main answers to the question of why Trinidad and Tobago is poor.
Furthermore, the non-energy areas of the economy remain severely underdeveloped and continue to heavily depend on government subsidies. This lack of economic success in non-energy areas discourages potential foreign investors from investing in Trinidad and Tobago, despite the oil and gas sector’s success. Direct foreign investment is undeniably crucial for a country seeking economic diversification, as the inflow of money can help build a strong foundation for new sectors in the economy.
According to a review conducted by the Commonwealth Foundation, a nonpartisan think tank focused on public policy, over 20 percent of Trinidad and Tobago’s citizens currently live below the poverty line. The report also states that 11 percent of the population is undernourished. These unexpectedly high rates of poverty and malnutrition may be partly due to the considerable gender-wage gap present in Trinidad and Tobago.
A study conducted by the Central Bank of Trinidad and Tobago shows that women, on average, earn a staggering 35.3 percent less than men. While this may be partially due to a large portion of women taking low-income jobs, there is certainly a serious amount of gender-based discrimination in wages. It is easy to fall into complacency after the increase in the average woman’s wage – from $9,000 in 2012 to $12,000 in 2014. Despite this rise in pay, however, the wage gap has only been increasing. The average male wage was $18,000 in 2012, but has disproportionately increased to $30,000 in 2014.
Another issue presented by the gender-wage gap affects families with single parents. In Trinidad and Tobago, the children of single parents are six times more likely to live under the poverty line. With about 75 percent of single families headed by the mother, the issue of the gender-wage gap becomes truly alarming. It is illogical to expect single mothers to not only care for her children but also provide for them if she is working for significantly reduced wages and has no supplemental income.
This economic disparity between men and women has led to efforts in increasing the resources dedicated to educating and training women. With the number of women in the workforce steadily increasing over the past few years, women in Trinidad and Tobago have definitely seen improvements in their social and economic standing. Nevertheless, there is still much progress to be made. Passing legislation to eliminate the wage gap would be a substantial step toward promoting economic success in Trinidad and Tobago, in addition to the inherent benefits of working toward gender equality.
Answering the question “Why is Trinidad and Tobago poor?” requires a more convoluted response than expected. The nation of Trinidad and Tobago is undoubtedly one of the wealthiest countries in the Caribbean despite its deeply embedded economic flaws. While the country has made impressive progress by developing social programs to help the vulnerable, nurturing new businesses to encourage private sector growth and eradicating the gender-wage gap must be near the top of Trinidad and Tobago’s priorities for there to be long-term economic improvement.
– Akhil Reddy
Photo: Flickr
Is the Slovakia Poverty Rate Reduction Sustainable?
The story behind the Slovakia poverty rate, however, is worth discussing. With the 2015 figures coming in at 12.3 percent, according to the CIA World Factbook, this number should be scrutinized.
Since its separation from the Czech Republic in 1993, Slovakia has had an odd growth experience. In the last 13 years, for example, Slovakia’s poverty rate has cycled between 13.3 percent and 10.6 percent, according to the World Bank. The CIA World Factbook’s 2015 figure of 12.3 percent shows a slow decrease following the 2011 peak of 13.2 percent, which was the second of two peaks over the last 13 years.
To be clear, the fact that the Slovakia poverty rate is decreasing is a good thing. The country’s low-cost labor force has made it an attractive hub for foreign investment in central Europe in recent years. According to OECD, Slovakia’s GDP growth rate is projected to be 4.1 percent, which is a respectable number for any country and outpaces many economic powers like the United States.
The question that remains, though, is whether or not this advancement, and particularly the decrease in the Slovakia poverty rate, is sustainable. The upward trend in the Slovakia poverty rate from 10.6 percent in 2006 to 13.2 percent in 2011 could be an anomaly due to the 2008 financial crisis. With an economy highly based on labor that focuses itself on volatile industries such as energy, Slovakia must diversify its economy if it wishes to continue its recent economic growth.
It will be interesting to see how Slovakia develops as the country pulls itself out of poverty, unemployment and the like. Whether or not this recent growth is truly sustainable remains to be seen, but there are high hopes for the young country.
– John Mirandette
How to Help People in Trinidad and Tobago
While it is always important to help countries in need, helping people in Trinidad and Tobago has a particular significance right now, as more and more young men are being recruited into ISIS. In fact, the country has become a breeding ground for extremism in the Caribbean. This is, in part, due to poverty and the fact that many young people see very few opportunities for their future (especially with the country’s economy on a steady decline), making them easy targets for extremist recruitment. While this is a problem with no one simple solution, the government of Trinidad and Tobago has been slowly trying to prevent the influence of ISIS by introducing new amendments which would criminalize membership in the Islamic State or any extremist organization.
Still, it is clear that the root of this problem is poverty and helplessness, both of which can be alleviated by providing food, housing, education and generally letting people in Trinidad and Tobago know that people care about them. While it may not fix everything, it will be a small way to help people in Trinidad and Tobago and, hopefully, begin to lift them out of poverty.
– Audrey Palzkill
Photo: Flickr
Four Ways to Help People in Zambia
Five million people in Zambia do not have access to safe water, and eight million of their people do not have access to sufficient sanitation. These cause diarrheal diseases and often death for children under five. Aside from physical health deterioration, many kids do not get the proper schooling, which in turn makes it more difficult to get jobs in the future to financially stabilize themselves and their families. This is a major concern for Zambia, with more then half of the nation living below the poverty line. Luckily, there are many easy ways to help people in Zambia.
Donate
One way to help the people in Zambia is to donate. There are multiple organizations that accept donations which go directly to Zambia. An organization called Children’s International uses donations to pay for school uniforms, supplies, scholarships, tutoring and medications that are inaccessible to people in Zambia. Children’s International also works with setting kids up for employment by holding mock interviews, resumé building workshops as well building both workplace and technical skills.
Sponsor
Another way to help those suffering in Zambia is to sponsor a child. An organization called Children International works to create a better environment for kids to grow up in by running a sponsorship. Sponsoring a child in Zambia would allow Children International to continue to provide education and healthcare to children in need.
Hands-On Volunteering
For those looking to get first-hand experience acting on the poverty crisis in Zambia, you can join one of the many organizations that work hands-on in the country. One of the best ways to help people in Zambia is to volunteer your time on the ground. One organization that works in Zambia to create sanitation facilities throughout the country is called Water Aid. In 2016, Water Aid was able to provide 61,000 people with safe water and 62,000 people with better sanitation.
Support the Bill
Another way to help people in Zambia is to be a voice by supporting the AGOA & MCA Modernization Act. If passed, the bill will authorize the Millenium Challenge Corporation to operate concurrent economic compacts in other countries, including Zambia. Contacting members of congress by phone or email to let them know you support the bill is an easy way to help out those in Zambia. The people in Zambia are not able to provide a voice for themselves, but others have the ability to stand up for them.
Donating, sponsoring a child, volunteering and supporting the AGOA & MCA Modernization Act are all fantastic ways to get involved and help the people of Zambia. The more people willing to help, the sooner Zambia can start to see its citizens being lifted out of poverty.
– Chloe Turner
Photo: Flickr
How to Help People in Moldova
Finding out how to help people in Moldova does not necessarily require a singular approach. But whatever the method, it must be efficient, as a press release from The World Bank highlighted it as “one of the poorest countries in Europe.” Over 5 percent of the country’s people endure extreme impoverishment, and its administration “pledges to take out of poverty over 150,000 men and women” by the year 2020.
The United States AID explorer page marks the country as lower-middle income. For 2015, U.S. disbursements to the nation reached over $136 million, with its top sector focusing on agriculture. Furthermore, 11 percent of these U.S. funds took the form of military aid, while the rest fell under the economic umbrella.
The United Nations Development Programme (UNDP) released an analysis with potential growth changes needed to help Moldovans have a better quality of life. It broke down the needs into categories with the percentage of growth for each:
UNDP mentioned that with U.N. support, the National Bureau of Statistics would consult with those “from vulnerable groups” in the spring of this year to allow better evaluations of “the complexity of poverty phenomenon and its dimensions, given that economic indicators…are not always in line with those experiences and perceptions of people…”.
The World Bank named some of the highlights from the Moldova Poverty Assessment 2016:
Pensions
Pros: Increased income
Cons: There are better methods that benefit disadvantaged groups
Labor markets
Pros: “Contributed to the progress”
Cons: This progress occurred “mostly through productivity increases rather than job creation”
Because a significant part of confronting Moldova’s poverty revolves around the workforce, it is paramount to support legislation that addresses this. This may seem like a daunting task for ordinary people outside of the country to fulfill. But for those questioning how to help people in Moldova, supporting important legislation like the Economic Growth and Development Act—which strives for “market-based economic growth in developing countries”—can be one of the most effective methods in making headway.
– Maleeha Syed
Photo: Flickr