The Top Three Causes of Poverty in Hungary

Causes of Poverty in HungaryThe latest official statistics that can be found regarding poverty in Hungary are from 2015 by the Hungarian Central Statistical Office (KSH). According to their definition of the poverty line, 35 percent of the Hungarian population were living below the poverty line in 2015. More recent statistics have not been released due to a controversy over the KSH’s definition of poverty. However, by the United Nations’ standards, 46.6 percent of Hungarians in 2014 were impoverished, living on less than $300 a month.

There are three leading causes of poverty in Hungary that persist today:

  1. The price of real estate in Hungary is high and still rising, considering the devaluation of Hungarian currency. After Sweden, Hungary has the second-fastest rising real estate prices. The average Hungarian family spends $465 a month on rent and utilities alone, leaving little remaining for other bills and necessary items. Also, rent is only affordable for the average family in cities where it is near impossible to find work. Due to the high price of real estate, the average family with two children can hardly save $30 a month.
  2. Unemployment in Hungary remains a problem, though the number of unemployed Hungarians is seemingly decreasing. The current unemployment rate in Hungary is 9.3 percent, which is an improvement compared to earlier years. However, this rate does not take into account the approximately 300,000 people who are employed but receive no employment benefits. This is due to the Hungarian Work Plan that was launched in 2011, which forces the unemployed into employment programs. These employment programs pay a maximum of $200 a month, preventing any forward mobility. Keeping in mind that Hungary ranks eighth internationally regarding work hours, the employed and unemployed alike are both on the verge of poverty.
  3. Private debt is also largely responsible for poverty in Hungary. The government of Hungary offers $39,000 in loans to families with children – which many families accept but cannot afford to pay back. There are many Hungarian families that end up in a circle of debt, in which they accumulate more and more debt they cannot afford to pay off. The rapid devaluation of Hungarian currency adds to this cycle as it has caused private debt to dramatically increase.

The Takeaway

Addressing these causes of poverty in Hungary is necessary in order to help impoverished Hungarians. Approaching these problems effectively will take reforms from the Hungarian government as well as outside assistance. The programs currently being enacted have had major effects on reducing the rates of poverty in Hungary.  Thus, these efforts should continued to be pursued by the Hungarian government and the NGOs enacting them.

– Haley Hurtt

Photo: Flickr

Poverty Rate in Nicaragua Declines but Rural Areas Suffer

Poverty Rate in NicaraguaWhile the poverty rate in Nicaragua has declined in recent years, approximately 30 percent of the population currently lives on less than $2 per day. Nicaragua’s poverty resides predominately in rural areas where resources and employment are limited.

One Step Forward, Two Steps Back

According to the National Survey of Measurement of Life, extreme poverty fell from 8.3 to 6.9 percent in Nicaragua, and the Gini Coefficient of Inequality improved from 0.38 to 0.33 percent.

Nicaragua’s rising economic growth, supported by agricultural and commercial activity, indicates that its policies are working to fight poverty and create jobs and incomes for families. However, Nicaragua still has the lowest level of GDP per capita in Central America.

BCN President Ovidio Reyes says: “We know that we face a great challenge and that there is still a long way to go. The country needs to improve its per capita income even more, which can be achieved through higher rates of economic growth that allow the creation of jobs and more Income for families.”

The Need for Focus on Rural Areas

To continue fighting extreme poverty, Nicaragua must focus on its rural areas, where 50 percent of households live in extreme poverty. Finding innovative methods for economic stimulation and helping the poorest families improve their livelihoods and incomes will spur increased economic growth.

In rural areas, limited access to good schools and job opportunities cause Nicaraguan families to farm for earning a living and food. Yet, the dry land is unsuitable for agriculture and worsens their struggle instead of alleviating it. The land supplies limited natural resources, including water. With 80 percent of the rural poor depending on agriculture, the environment suffers. Recent droughts also affect food security and sources of income, and the fragile ecosystem and isolated location make productivity an obstacle.

Unemployment, which averages 12 percent for the country, exceeds 20 percent among poor rural families and many migrate to urban areas or abroad for work. One in five Nicaraguan families rely on remittances as a source of income, accounting for 20 percent of GDP. The unemployment rate, along with the poverty rate in Nicaragua captures the unparalleled plight of the rural poor.

Without employment opportunities and adequate infrastructure, the poor do not improve their incomes and well being. Since the poor then face many limitations, including natural resources, isolation and low productivity of soils, they do not have the means to access markets and public services such as education, health and legal services. Ultimately, productivity is stalled.

Nicaragua’s poverty rate may be declining, but to achieve sustainable economic growth, the country must focus on rural areas where poverty is most extreme.

– Sarah Dunlap

Photo: Flickr

,

Open Air School in Pakistan Brightens Next Generation’s Future

Open Air School in PakistanIn Pakistan, about 58 percent of the population is illiterate and 11-12 million children are working instead of attending school. But thankfully, a firefighter in Islamabad is working to help change these major societal problems in Pakistan.

For the past 30 years, Mohammed Ayub, affectionately known as “Master Ayub,” has held classes in a park near Pakistan’s parliament to educate poor children who cannot afford an education.

At this “open air” school in Pakistan, the children are taught a 1st to 10th grade curriculum, and are even taught how to speak English.

Ayub felt compelled to start teaching poor children after he moved from the agricultural town of Mandi Bahauddin, to Islamabad, Pakistan’s capital. In the city of Islamabad he saw small children in the streets doing various types of work such as cleaning cars, selling trinkets or begging.

One day after work, he approached one of these working children and told him that he would give him an education completely for free. The child accepted his preposition, and as word spread of his open air school in Pakistan, many more children began to enroll. Now, as soon as his work finishes at 3 pm, he goes to the park to teach about 200 students with the help of former students and friends.

Ayub himself pays for all of the students’ books, pencils and food.

Ayub believes education is extremely important for poor children because these citizens are especially vulnerable to developing into criminals and terrorists. In an interview with VPRO Metropolis, Ayub said “poor people; they need help. They start thinking negatively. They become thieves or plot bombings. That’s why I want to help them, so that they have an aim in life. They are our future teachers and doctors.”

His students are very ambitious and dream of becoming doctors and scientists. Before exams, they all gather in the park at night to study; when it gets chilly, they bundle up and study harder.

Ayub’s former students have gone on to attend university and secure well-paying jobs, and in the future, Ayub dreams of building a school for his students, especially because he hopes to incorporate computers in his teaching. In an interview with Al Jazeera he says that he wants to leave a facility behind after his death “where these children continue to get the light of education.”

– Anna Gargiulo

Photo: Flickr

,

Investing in the Future: Decreasing the Uruguay Poverty Rate

Uruguay Poverty RateUruguay has made great progress in reducing poverty since the mid-1980s, mainly due to the country’s extensive social policy and macroeconomic stability in the 1990s. The country is also notable in Latin America for its equitable distribution of income. However, the Uruguay poverty rate remains a concern for some Uruguayan communities.

Uruguay’s impoverished residents typically have a critical combination of low skills, weak demand and high family dependency that makes them vulnerable to financial struggles. A dual strategy that improves Uruguay’s investment climate and enhances growth is one method that could help the country’s poor. Investing in human capital via education could assist impoverished residents as well.

Uruguay’s poor are also marginalized. Impoverished Uruguayans are increasingly concentrated in specific neighborhoods, challenging poverty reduction efforts and implying changes to social services. Uruguayan children have become a significant portion of the country’s poor, with 40 percent born into poor families — a fact that foreshadows an intergenerational poverty problem.

Teenage mothers, inactive youths and unemployed adult males (40 to 50 years old) with low skillsets are vulnerable to the Uruguay poverty rate as well. While this demographic is relatively small, it could increase given Uruguay’s past social problems. However, this problem is still manageable in scope and depth. Uruguay would require a change to conventional social programs in order to help this vulnerable demographic.

Uruguayan children are the country’s most vulnerable demographic to impoverished conditions. However, Uruguay’s elderly population are at the least risk due to the country’s pension benefits and increasing job salaries. Uruguay’s constitutional change in 1989 permitted the indexation of pensions to wages, helping the country’s elderly to have higher income deciles and lower poverty rates as well.

Income inequality is another reason for the Uruguay poverty rate. Inequality in workers’ wages was on an upward trend from the 1990s to 2007. Since 2008, increases in labor income have helped lower Uruguay’s income inequality problems. However, Uruguay’s income inequality rate is still relatively high by OECD (Organization for Economic Co-operation and Development) standards.

Thankfully, Uruguay’s poverty rate is continuing to decrease. The country’s poverty rate was 11.5 percent in 2013 and dropped to 9.7 percent in 2014. Uruguay’s homelessness rate of 0.5 percent dropped to 0.3 percent within the same years. The country’s Central Bank stated that Uruguay’s economy grew by 3.5 percent and slightly above market expectations.

While the Uruguay poverty rate continues to decrease, the country’s impoverished communities will require opportunities for income equality. Uruguay has a literacy rate of 96 percent (the highest rate among Latin American countries) and a social contract that stresses the importance of accessing education.

Uruguayans with low skillsets may be able to escape poverty by taking advantage of the country’s educational opportunities, and therefore creating a brighter Uruguayan future for all.

– Rhondjé Singh Tanwar

Photo: Flickr

A Look at the Poverty Rate in South Korea

Poverty Rate in South KoreaThe poverty rate in South Korea not only decreased in the past few decades, but it now also continues to decline. When examining the poverty rate in the country, however, there seems to be one apparent issue: the poverty rate among people who are 34 years old or younger and people who are 65 years old and older have both increased.

Comparing the two, the poverty rate among people aged over 65 is significantly higher than people below the age of 34 — 64 percent compared to 12 — and therefore a greater cause for concern for the country.

These numbers directly contrast the overall movement of the poverty rate in South Korea. Among people aged from 35 to 50 years old, the poverty rate hovers around six percent and the rate among 50 to 65 years old stays at approximately 12 percent. Seeing as the poverty rate in South Korea tends to dramatically vary based on age range, it begs the question as to what is causing such wealth disparity between the different age groups in South Korea.

The answer to such a question can primarily be attributed to two main factors: increased competition in the work force and age discrimination among employers.

As the population of South Korea continues to grow, so too does the competition for jobs. Many young South Koreans seek employment opportunities in a competitive marketplace that only becomes more competitive over time.

In combination with the slowing of the world economy, this can have devastating effects on the young as the rate of competition for jobs slowly continues to increase while the number of jobs available paradoxically decreases. This explains the youth unemployment rate in South Korea, which rose to approximately eight percent at the end of 2016.

Another major issue is the inability for people aged 65 and older to generate income. This occurs because many elderly citizens are forced out of the workplace and then do not receive enough government subsidies to survive. It is typical for companies to force employees who are in their mid-fifties into retirement with the interest of bringing in younger, “fresher” workers.

To further exacerbate this issue, the public pension system in South Korea was only established in 1988 and leaves many people who retired in the mid-2000s with little to no retirement. It is the combination of these two issues that has been significantly contributing to the increasing poverty rate in South Korea.

In order to lower the poverty rate, it may become essential that South Korea prioritizes making its public pension system more efficient so as to provide more people with funds after retirement. Without such correction, it may become impossible for elderly people in South Korea to sustain a healthy lifestyle once consistent sources of income cease.

– Garrett Keyes

Photo: Flickr

,

Gender Inequality and Causes of Poverty in Swaziland

Causes of Poverty in SwazilandAs 63 percent of Swazis continue to live below the national poverty line, it is clear that there is an urgent call for change. While the causes of poverty in Swaziland are many, gender inequality serves as one of the primary factors — an issue that needs to be addressed in order to aid in poverty reduction efforts throughout the nation.

Among the many causes of poverty in Swaziland, a lack of effective health care is one of the largest concerns. The nation holds the highest rate of HIV prevalence in the world, with 28.8 percent of the adult population living with this life-threatening disease.

As the key driving factors of Swaziland’s HIV epidemic include low and inconsistent condom use, transactional sex, gender inequalities and gender based violence, it is clear that the cycle of poverty supported by this disease disproportionately affects women.

With 120,000 of the 220,000 people living with HIV in Swaziland being women, studies reveal that 31 percent of all women within the country live with HIV, while only 20 percent of men are affected.

Many driving factors contribute to women’s increased risk of contracting HIV, including a lack of access to proper reproductive education and health care. While 14 percent of women between the ages of 15 and 24 have been involved in intergenerational sex with older men, their adolescent age and lack of reproductive education cause them to be at more of a risk to the spread of the disease, often without their knowledge.

According to AVERT, one in three women in Swaziland also report experiencing some form of sexual abuse by the time they were 18. These and other significant gender disparities have ranked Swaziland 137 out of 159 countries in the Gender Inequality Index.

The inequalities women face in Swaziland not only leave them in a more vulnerable position to disease but also serve as the major causes of poverty in Swaziland. As women are the primary caretakers and providers for children worldwide, those disadvantages that women face create a ripple effect of a detriment for the next generation as well.

For every 100,000 live births in Swaziland, 389 women die from pregnancy-related causes, leaving 24 percent of children aged zero to 17 as orphans and 45 percent as either orphans or vulnerable.

These high maternal mortality rates reveal the reality that women’s disproportionate access to health care in Swaziland serves as one of the direct causes of poverty in Swaziland, as it not only affects the mother but also leaves almost half of Swaziland’s adolescent population at an increased risk for poverty.

Through analyzing the direct effects of gender inequality on the next generation’s vulnerability to the cycle of poverty, it is clear that a greater focus needs to be placed on addressing gender disparities within the nation — especially those of female’s access to education and reproductive health care — so as to encourage a significant drop in the poverty rates in Swaziland.

– Kendra Richardson

Photo: Flickr

A Global Example: The Ever-Decreasing Poverty Rate In Belgium

The Poverty Rate In BelgiumBelgium is a country located in western Europe between France and the Netherlands. It became an independent nation from the Netherlands in 1830 and was then controlled by Germany during World War I and II. The foundation of the EU and NATO allowed the country’s capital, Brussels, to become the home for numerous international organizations. The influence of the organizations and membership in the EU and NATO has allowed the poverty rate in Belgium to remain low.

Currently, the poverty rate in Belgium rests at 15 percent. Like many other European nations, Belgium has a high standard of living and per capita income. Belgium consistently ranks among the top nations in the Human Development Index (an index that measures the quality of life in countries). In 2007, Belgium ranked number seven, which was ahead of the country it once was a part of — the Netherlands.

When measured in 1992, 3.7 percent of the population was in the lowest 10 percent of the income bracket. About 9.5 percent were in the lowest 20 percent, 14.6 percent were in the second 20 percent, 18.4 percent were in the third 20 percent and 23 percent were in the fourth 20 percent of income.

The highest 20 percent made up 34.5 percent and the highest 10 percent made up 20.2 percent of income. These statistics indicate the low poverty rate in Belgium and the little income inequality.

Although there is little income inequality in Belgium, 16.7 percent of people under the age of 18 lived in families that fell below the poverty line. Since 2012, the risk of being under the poverty line for people under the age of 18 has decreased considerably. Thanks to numerous social welfare programs, the risk of a person under 18 being under the poverty line in Belgium has fallen from 27 to 15 percent.

The social welfare system is a primary reason for why the poverty rate in Belgium remains low. The country has programs for family allowance, retirement, medical benefits, unemployment insurance and even a program that provides a salary in the event of an illness.

Belgium is a country that has managed to tackle the issues of income inequality and poverty while remaining a small nation. The social welfare system in Belgium in conjunction with its cooperation with the EU and NATO are one of the primary reasons for the success of the country. Thus, countries interested in lowering their poverty rates should follow Belgium’s example.

– Nicholas Beauchamp
Photo: Flickr

, ,

How to Help People in Mexico: Four Influential Organizations

Help People in MexicoIn 2014, the Mexican government reported that poverty within the country rose to 46.2 percent —  nearly half the population living below the poverty line. For the country with a population of just over 123 million, the startling percentage is equivalent to over 55 million people living in poverty. These people are defined as living on less than 2,542 pesos or $157.70 per month.

Despite nearly 80 percent of the population living in urban areas, mainly in or around the capital Mexico City, four percent of the population has unimproved drinking water and 15 percent has unimproved sanitation facilities.

Here are four nonprofits advocating, fundraising and working on the ground to help people in Mexico.

1. Children International

Working in ten countries around the world including Mexico, Children International is a nonprofit focused on helping kids living in poverty. With over 70 community centers and over 9,000 volunteers worldwide, Children International provides children living in poverty with assistance in health, education and employment through empowering programs and resources.

The long-term impacts aim to help break the cycle of poverty. Their website offers a number of ways to get involved including sponsoring a child by donating $32 a month, making a single donation or volunteering at one of their community centers.

2. Feed the Hungry

Relying on almost entirely private donations, Feed the Hungry delivers meals and nutrition education to children throughout San Miguel, Mexico. Through school meals, family education programs and community events, the nonprofit aims to alleviate poverty in the poorest communities. Feed the Hungry operates kitchens partnered with schools in 33 communities.

Most recently in 2017, they opened new kitchens in Moral de Puerto de Nieto, Los González, Puerto de Sosa and Nuevo Pantoja, feeding more than 400 additional children every day. You can help people in Mexico with Feed the Children by sponsoring a school kitchen, advocating throughout your community or volunteering on the ground.

3. PEACE

PEACE (Protection and Education: Animals, Culture, and Environment) is a nonprofit working in the Bay of Banderas, Mexico, to increase educational and economic opportunities in developing areas. To support improved quality of life, the nonprofit runs programs consisting of topics ranging from community education to Mexican culture preservation to environmental protection.

You can get involved by donating to the organization or volunteering for the company remotely or on the ground.

4. PVAngels

Focused on uplifting the communities in Puerto Vallarta, PVAngels combines activity-driven events with fundraising to create community awareness. The money raised goes to charities focusing on a variety of issues including environmental issues, health care, education, family assistance and recreation services.

You can help people in Mexico by donating to any one of PVAngels’ charities or volunteering as a “partner for change” assisting directly the communities in Puerto Vallarta.

By utilizing nonprofits as well as individual volunteers to help people in Mexico, Mexico’s future will hopefully be a flourishing one.

– Riley Bunch

Photo: Flickr

,

Preventing the Spread of Common Diseases in Liberia

Common Diseases in LiberiaAs one of the poorest countries in the world, Liberia has struggled to develop adequate healthcare infrastructure to combat the spread of disease. Many diseases in Liberia can be traced to poor hygiene, sanitation and water quality, allowing diseases such as tuberculosis, malaria and cholera to affect the population.

Despite economic barriers, Liberia has made progress in certain areas, such as combatting the spread of HIV/AIDS through government programs and improved conditions.

Some of the most common diseases in Liberia include pneumonia, acute respiratory diseases and diarrheal diseases, all of which have high mortality rates. Many respiratory diseases can be linked to poor indoor air quality in rural areas where coal is often burned with poor ventilation.

Another health concern due to poor living conditions is the prevalence of cholera and parasitic disease outbreaks, which are connected to contaminated water and lack of proper sanitation. Over half of Liberian households do not use any toilet facility, and only 10 percent of households use an improved, unshared toilet facility.

Malaria is one of the most common illnesses throughout West Africa, and Liberia is no exception. Malaria accounts for 38 percent of all outpatient visits — the most out of any disease. After peaking in 2011, confirmed Malaria cases per 1000 have declined drastically to 220 cases per 1000 all thanks to preventative efforts and increased awareness.

In the spring of 2017, Liberia experienced a “mystery outbreak” along with several other West African countries. After extensive testing on autopsies, the outbreak was classified as meningitis, which caught scientists off guard due to the introduction of a meningitis vaccine throughout West Africa in 2010.

This outbreak, however, is presumed to be a meningitis C strain, which required different antibiotics to treat. In all, Liberia’s quick response and containment of the outbreak has demonstrated the country’s health improvements since the first cases of Ebola in 2014.

In the last decade, Liberia has made a concentrated effort at curbing the spread of diseases such as HIV. Recently, the Ministry of Health and Social Welfare and its partners have increased the number of HIV counseling and testing centers, and helped increase the number of sites providing prevention of mother-to-child transmission services from 29 in 2008 to 230 in 2011.

While the prevalence of the disease remains relatively high at 1.9 percent for adults ages 15-49, the Liberian government has put infrastructure in place to bring this number down in the near future.

While poverty and poor living conditions continue to facilitate the spread of diseases in Liberia, recent efforts have reduced the threat of Malaria and HIV. Continued improvements to water quality, living conditions and health care access are necessary for Liberia to solve future questions regarding disease.

– Nicholas Dugan

,

Nine of the Most Important Facts About Tongan Emigrants

Tongan EmigrantsTonga is an archipelago in the South Pacific and the last surviving Polynesian kingdom. While isolation, limited markets, frequent earthquakes and cyclones pose a threat to native Tongans, emigration has had a positive economic impact both on Tongan emigrants and native Tongans. Here are nine facts about Tongan emigrants you should know:

  1. Tonga has retained much of its heritage despite 70 years of British colonial rule. The country gained independence and became a member of the British Commonwealth in 1970. Immigration patterns have helped maintain Tongan culture overseas: Emigrants have brought their families abroad, resulting in high concentrations of Tongans in cities like Auckland, New Zealand or Oahu, Hawaii where Tongan language and customs are preserved.
  2. One of the first motivations for Tongans to emigrate was population growth. In 1976, Tonga’s population tripled what it had been in the 1930s. The country’s relatively little land combined with a potential food shortage and greater educational opportunity abroad drove most Tongan emigrants to New Zealand, Australia and the U.S.
  3. Many early Tongan emigrants converted to Mormonism. The Church of Latter Day Saints conducted extensive missionary efforts in Tonga, and converts were offered free plane tickets to the U.S. This led to the creation of one of the first Tongan-American communities in Salt Lake City, Utah.
  4. Today, half of roughly 216,000 Tongans live abroad.
  5. Thirty percent of Tonga’s GDP comes from remittances, or sums of money sent from Tongans abroad to their families at home. Remittances come in the form of cash as well as material goods such as appliances and clothing. They are essential to the Tongan economy as Tonga has few exports, there are few salaried jobs available to young adults and unemployment is common in rural areas.
  6. However, remittances do have their drawbacks—money flowing into the country has caused a spike in material consumption, which has in turn caused inflation.
  7. Even Tonga’s tourism industry is bolstered by Tongan emigrants. Large families who have moved away visit Tonga frequently and support the country’s economy by spending money at local businesses.
  8. The longevity of remittances as the basis of Tonga’s economy currently lies in doubt. As more Tongans are born abroad, some fear that young Tongans’ connections to their home country could be weaker and that remittances could diminish.
  9. Another factor that contributes to economic instability in Tonga is the common occurrence of natural disasters. Tonga is part of the “Ring of Fire,” an area prone to earthquakes and volcanic eruptions near the basin of the Pacific Ocean. In addition, Tonga’s tropical cyclone season takes place November through April, though cyclones can occur at any point during the year. The variety and frequency of natural disasters in Tonga could threaten Tonga’s agricultural export infrastructure.

While Tonga’s economy faces some challenges, the Tongan population has been steadily increasing for decades. Notably, the rate of population increase spiked from 0.35 percent in 2013 to 0.82 percent in 2017. Tongans born abroad will have complex and varied relationships to their native country as time goes on, but the fact their numbers are increasing suggests that Tonga will be able to count on its emigrants for remittances for years to come.

– Caroline Meyers
Photo: Flickr