Whole Planet Foundation, the nonprofit organization founded by Whole Foods Market, seeks to alleviate poverty in communities around the world that supply Whole Foods stores. All of the Foundation’s overhead costs are covered by Whole Foods Market, meaning 100 percent of donations go straight to community micro-lending programs.
According to the Kiva organization, “microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.”
Microfinance encompasses a wide array of services, such as credit, savings and small loans services. Whole Planet Foundation focuses on the credit component of microfinance by supporting microfinance institutions that provide small business loans.
To ensure the efficacy and intentions of Microfinance Institutions (MFIs), Whole Planet Foundation conducts careful research. Field teams in each country first identify potential partners. After reviewing relevant information, the list of potential partners is shortened.
Each institution is visited in person by Regional Directors. The field visit allows the Foundation “to see first-hand the approach and practices of an MFI”. Once approved, MFIs are eligible to receive grants from the Whole Planet Foundation to service their clients.
The field visit allows the Foundation “to see first-hand the approach and practices of an MFI”. Once approved, MFIs are eligible to receive grants from the Whole Planet Foundation to service their clients.
The Whole Planet Foundation does not work with government-run MFIs which they have found to be “poorly run and corrupt”. The Foundation states that it has found “great success by working with MFIs with no government affiliation”.
At the same time, the Foundation acknowledges that microcredit is not a “silver bullet” that can address all the factors that contribute to global poverty. As the website notes, one loan doesn’t immediately lift a family out of poverty.
However, MFIs, when run correctly, can help people without jobs start and maintain their own businesses. MFIs give people the opportunity to invest in their own potential and create opportunities for themselves and their families.
Whole Planet Foundation currently supports over 1.3 million micro-entrepreneurs in 70 countries around the world. Of note, 87 percent of those reached globally are women. This investment has been met with success, boasting a repayment rate of 97 percent.
One entrepreneur who is benefitting from the program is a woman named Yajaris from Nicaragua. According to the Foundation, she heard about her local MFI, Pro Mujer Nicaragua, from a neighbor several years ago. She used micro credit loans as a way to expand her kiosk business. Yajaris added a variety of vegetables, drinks and cleaning supplies to her inventory.
Microloans also helped Yajaris to purchase a refrigerator and shelves on which to display the new items. Within just three years, according to Whole Planet Foundation, her kiosk doubled in size. Yajaris used her savings and an additional housing loan from Pro Mujer to build a two-room home. She rents out that property and is currently using the rental income to save up for another floor.
According to Kiva, the benefits of MFIs have been proven to go far beyond supporting small businesses. By providing people with opportunities to become self-sufficient, household economic welfare stabilizes, allowing families to better cope with the challenges they face. The success of female-run businesses, in particular, contributes to the increase in gender equality. As households succeed, communities can grow to become more empowered and educated.
– Taylor Resteghini
Photo: Flickr
Greater Access: Financial Services in Developing Countries
When talking about fighting global poverty, most people discuss solutions to problems of malnutrition, poor shelter, or dirty water. But how about greater access to financial services?
Most individuals in the developed world could never imagine living on wages of less than $10 a day. There are thousands of ways to secure an adequate daily income because of the countless economic opportunities that are supplied by developed markets.
Access to these financial services, a sparse resource in areas suffering from poverty, provides individuals with the chance to actively participate in securing a means of subsistence.
In March, the World Bank released a video interview with Douglas Pearce, the Global Lead for Financial Inclusion at the international organization. The conversation shed light on the lack of access to financial services in developing countries.
“My favorite number is two billion,” said Pearce, “Two billion is the number of adults who don’t have access to formal financial services.” This latest statistic has fueled the World Bank’s new Universal Financial Access Goal which targets 25 countries that account for 73 percent of the world’s “unbanked.”
Access to financial services in developing countries would offer more of the world’s poor the opportunity to feed themselves and increase their potential income. “Being able to tap into savings provides that level of protection, cushion, of falling back into poverty,” Pearce continued. This method of poverty relief plays an important role in sustaining an individual’s rise out of hardship.
The World Bank plans to meet the goal of more financial inclusion by ensuring that each individual helped has a bank account regardless of gender. Pearce hopes that these accounts will be “gateways to a range of credit, insurance, payment, and savings services.” These services then allow people living in poverty to afford education, a home or vehicle and equipment to start a business.
Pearce hopes that these accounts will be “gateways to a range of credit, insurance, payment, and savings services.” These services then allow people living in poverty to afford education, a home or vehicle and equipment to start a business.
There are multiple kinds of financial services that are being integrated into poverty-ridden areas:
These financial services are being integrated into many developing countries across the goal. The emergence of these economic opportunities has the power to inspire entrepreneurship and income security in areas with the most poverty. As Pearce says, “financial inclusion has the potential to unlock opportunity for people.”
– Jacob Hess
Photo: Flickr
Social Inclusion Project: Investing in Bulgaria’s Youth
The Bulgarian government has been working to ensure increased educational opportunities for its youth with programs such as the Social Inclusion Project which was completed at the end of 2015.
The Project was designed to increase school readiness in children under the age of seven to ensure equal life choices, targeting low-income and marginalized families. The initiative has reached over 20,000 youth and the country’s kindergarten enrollment rate currently stands at 83 percent.
“Giving people the same life chances requires investments in early childhood development, providing kids, as one says here in Bulgaria, with their proper initial seven years,” said Markus Repnik, World Bank country manager for Bulgaria, in his address to the Minister and the government.
Repnik went on to say that “the project will provide these proper initial seven years for the most vulnerable children through pre-school training and services – so that these kids enter school at an equal footing, allowing them to successfully progress in their later education and life.”
Educational achievements correlate significantly with future employment opportunities. Productivity is declining in many Eastern European countries because many working-age people lack sufficient education to participate in the labor market.
Investing in ECD programs equips a generation to be conscientious, responsible and resilient especially during difficult economic conditions.
The Social Inclusion Project invested in infrastructure, building kindergartens and children centers and in services such as medical screenings, speech therapists, physiotherapists, pediatrician checkups and parental training.
This initiative was possible because stakeholders, policy makers and international partners decided to make a commitment to ECD.
By partnering with the World Bank, the Bulgarian Red Cross, UNICEF, the Bulgarian Pediatric Association and many other supporters, Bulgaria has equipped young people to pursue better jobs and ultimately have the ability to provide for future generations.
– Emily Ednoff
Photo: Flickr
Farm Africa: Expanding Exports for East African Farmers
Farm Africa is the top agency under the Food Trade project, a U.K. government-funded food crop trade enhancement program that assists farmers in Uganda and Tanzania to increase their household incomes and boost their living standards.
The undertaking is supported by a £3 million ($4.2 million) grant from the U.K.’s Department for International Development (DFID). The Guardian reports that the project will benefit 70,000 Ugandan and Tanzanian farmers, in part by expanding their export markets.
According to Farm Africa, 60 percent of the world’s uncultivated land suitable for crop production is in Africa. There is an enormous possibility for development in the continent that would allow for self-sustaining food production.
In the last year, Farm Africa has impacted 1.4 million people in eastern Africa. The organization has incorporated contemporary systems and methods to help farmers “grow more, sell more and sell for more.”
The Farm Africa project will assist Ugandan and Tanzanian farmers manage and supply exceptional quality grain and market it for maximum profit.
The project will help 12,000 farmers in the Teso sub-region, including 2,000 members of the Katine Joint Farmers’ Co-operative Society (Kajofaco). This will allow more isolated farmers to connect with high paying buyers, particularly in Kenya.
The Kenyan market has a large population and booming economy which is key for the success of Ugandan and Tanzanian farmers. Additionally, Kenya, for the most part, is a food importer due to its mediocre crop growing capabilities.
Farm Africa, through the Food Trade project, will train farmers in Katine which is one of the poorest areas is in Uganda. The agency will provide guidance for improving methods of harvesting, drying, sorting and grading grain in three staple crops: maize, rice and beans.
Steve Ball, Farm Africa’s county director in Tanzania said to The Guardian: “By incentivizing farmers to grow bigger surpluses and making regional trade easy and affordable, this project will help lift tens of thousands of grain farmers in Tanzania and Uganda out of poverty as well as taking eastern Africa a step closer to agricultural self-sufficiency.”
– Heidi Grossman
Photo: Flickr
“Africa Code Week” Seeks to Make a Sustainable Impact
In October 2015 nearly 89,000 African youth in 17 countries took part in “Africa Code Week” where they had the opportunity to attend free online sessions and coding workshops. The event was created to empower African youth to become fluent in the language of the digital age and stimulate the continent’s economic development.
For some of the youth who took part in the week-long celebration of digital literacy, Africa Code Week marked the first time they had ever written a single line of code. For others, it was their first time using a computer.
“Africa Code Week gives us an opportunity to marvel at what the future holds,” said Bill McDermott, CEO of SAP, in an article for Forbes. “It’s true that today less than one percent of African children leave school with basic coding skills. I’m confident that figure is about to rise dramatically, just as Africa prepares to claim its rightful place as a soaring economic power in this new digital economy.”
Throughout the world, coding is becoming an increasingly critical skill for those entering the workforce. Over the next 10 years, it is estimated that there will be 1.4 million jobs in computer sciences but only around 400,000 graduates qualified to do them, according to International Business Times.
As we wind our way deeper into the 21st century, individuals with coding skills will become more and more valuable in the workplace. Digital literacy could become a key strategy for strengthening economic infrastructure in developing countries.
“Digital literacy has the power to put millions of young Africans on the path to successful careers,” Moroccan Minister of Education and Vocational Training, Rachid Belmokhtar, said to IT News Africa. “Trained, tech savvy graduates are needed to improve Africa’s position in the globally competitive knowledge economy. Everyone from governments and educational institutions all the way to NGOs and corporations has a role to play to spread digital literacy across Africa.”
It was foundations like Ampion, SAP, Simplon.co and more that saw the need and came to help. They founded Africa Code Week to bestow young Africans with a set of useful skills through hands-on teaching.
Despite the fact that the event is the largest digital literacy initiative ever held on the African continent, SAP and its partners are not satisfied. Next year, the Africa Code Week team hopes to reach 150,000 youth in at least 30 countries.
“The digital economy is here and the opportunities it presents are manifold,” said Pfungwa Serima, Executive Chairman, SAP Africa. “If we equip young Africans with the best technology, give them skills that make them relevant to the job market and empower them to be bold and innovative, we’ll see them do amazing things.”
– Jen Diamond
Photo: Flickr
Making the Link: Technology & Education in Sub-Saharan Africa
In Sub-Saharan Africa over 56 million people between the ages of 15 and 24 have not completed primary school education, according to a UNESCO report.
In addition, 30 million children are not attending primary school and 22 million teenagers are not enrolled in secondary school.
At the same time, however, the mobile phone penetration rate stands at 73 percent. “More households in developing countries own a mobile phone than have access to electricity or improved sanitation,” states a World Bank report.
Due to the easy access to technology in developing regions, connecting technology with education is a logical solution. The only challenge is how to adopt this strategy. In the past, large “umbrella” initiatives have proven ineffective, because of the very varied contexts in which they are implemented.
However, regionally-tailored, context appropriate technologies to narrow the education gap are being developed and utilized across sub-Saharan Africa.
The Kio Kit is one potential solution. The Kio Kit, which runs on BRCK, a mobile Wi-Fi and storage device, consists of 40 Kio tablets and headphones. “If it works in Africa, it’ll work anywhere,” is one of BRCK’s creator, Erik Hersman’s, catchphrases.
The Kio Kit was first launched in Kenya. The tablets have enough battery to manage the typically intermittent power in rural areas. Each one can run for 8 hours on a single charge.
A mix of the Kenyan educational curriculum and some international content is already pre-set on each Kio tablet. To stop students from roaming the Internet while in class, the tablets do not offer network connectivity. However, when connected to BRCK (thought as of the “brains” of the Kio Kit), tablets can be updated with new information and software. The BRCK has a sim card and options to have an ethernet connection.
As stated on the BRCK website, the Kio Kit sells for $5,000 and a Kio Tablet for $100. They are also available for purchase online, making them easily accessible.
“We knew if we were going to look at education seriously, we need to look at this with a solutions-based approach,” said Hersman. “The fact that most [existing] tablets have power cables you have to plug in and out – it doesn’t work for teachers. Little things make a big difference when you get to a classroom.” BRCK and Kio Kit have the potential to improve the education and futures of many children in different parts of the developing world.
– Michelle Simon
Photo: Flickr
SolarAid: Addressing the Energy Crisis in Malawi
In Malawi, only nine percent of the population is connected to the electricity grid. In rural areas, this number drops to one percent. In a country with a population of 16.7 million, growing at three percent a year; this is not sustainable.
The country’s economic and social development will slow drastically, if the energy crisis in Malawi persists.
According to a report by the BBC, the Malawian government is attempting to connect more people to the grid by opening the energy market to independent producers. Although this will make a significant difference, it comes at a price.
Malawi’s Energy Minister, Bright Msaka, said that Malawi could produce an extra 200 Mega Watts of solar energy by 2019, adding to the current capacity of 300 Mega Watts.
In the meantime, SolarAid is providing a cheaper and cleaner solution to the energy crisis in Malawi through its solar-powered lamps which can also charge mobile phones.
According to the charity’s website, many households in countries across Africa use homemade kerosene lamps. These are dangerous, emitting toxic black smoke; they are a weak light source and on average use up a significant portion of a family’s household, budget.
“A solar lamp is a compact, portable device that uses a photovoltaic panel to produce up to 10 watts of power,” according to a statement on SolarAid’s website. They typically take eight hours to charge, but can emit light for several hours.
The charity has introduced a pay-as-you-go ownership system at a cost of $12. In order to make the lamps more accessible, the organization offers a payment plan over the course of 3 or 4 months.
SolarAid’s social enterprise, SunnyMoney, is the largest distributor of solar lights in Africa. SunnyMoney has worked with Powered World Initiative USA to provide more students with solar lights that can make studying at home much easier.
“The amount of light that you get is linked to the amount of money you pay,” said Brave Mhonie, the national sales co-ordinator for SolarAid, in an interview with the BBC. While this is not a sustainable long-term solution, it is a strategy that can provide many with electricity, when they otherwise would be unable to access it.
The lamps help to address the energy crisis in Malawi, by providing a much safer alternative to kerosene, candles, or battery-powered torches. So far, SolarAid has sold 1,844,592 solar lamps and counting.
– Michelle Simon
Photo: Flickr
World’s First Vaccine for Dengue Fever
Over the past several decades, the global health community has taken on the challenge of eradicating diseases such as polio, tuberculosis and malaria.
Dengue fever (pronounced den’gee), a mosquito-borne viral infection, is another agenda item, which the World Health Organization (WHO) notes “has rapidly spread in all regions” putting about half of the world’s population at risk.
Similarly, the Center for Disease Control and Prevention (CDC) calls dengue fever a “leading cause of illness and death in the tropics and subtropics.”
The WHO estimates that nearly 400 million people are infected with dengue fever each year. Close to 500,000 individuals who have developed severe dengue fever or dengue hemorrhagic fever will require hospitalization and about “2.5 percent of those affected die.”
Symptoms of severe dengue fever include sharp abdominal pain, persistent vomiting, rapid breathing, bleeding gums, fatigue, restlessness and blood in vomit. The WHO highlights that the first 24-48 hours after initial symptoms begin can be lethal without proper medical attention and care.
Currently, there is no cure for dengue fever. However, the WHO has now approved a vaccination called Dengvaxia, which took 20 years to be developed at a cost of $1.8 billion.
Dengvaxia, developed by Sanofi Pasteur is being released in the Philippines this month in the first ever public immunization program for the virus. The Philippines has had the highest rates of dengue fever in the pacific region with over 200,000 cases reported in 2013.
A report in the Seattle Post-Intelligencer notes that the vaccination “prevents dengue hospitalizations by 80 percent and severe dengue cases by 93 percent.” The program was launched in Manila’s Marikina city to hundreds of public school children and is being administered in three courses, separated by six months.
The Philippines Health Secretary Janette Garin called the program a “historic milestone”. Garin continued, “We are the first country to introduce, adopt and implement the first-ever dengue vaccine through (the) public health system and under a public school setting.”
– Michael A. Clark
Photo: Flickr
Technology: Linking Advanced & Developing Economies
Social impact technology company, United Needs, works under the belief that the world is at its healthiest when interconnected. In order to disrupt cycles of poverty for rural farmers while simultaneously strengthening Earth’s food system, the organization is introducing new mobile technology to bring together advanced and developing economies.
In the next 34 years, the world will see an increase of 2.4 billion citizens. To feed this population the global food supply must increase by 69%, which means that finite agricultural resources must be used in the most effective way possible.
At the same time, the increase in population presents an exciting opportunity for smallholder farmers to play a large role in the expanding food economy. The United Needs website calls this “convergence of market forces” a chance for impoverished farmers to “grow their way out of poverty.”
In the current climate, small farmers in developing countries struggle with a variety of challenges. While small farms can be extremely productive, too few selling opportunities exist and farmers often lack access to traditional credit facilities. When market options are available, several levels of middlemen often consume most of the profit.
Research by the National Commission for Enterprises in the Unorganised Sector showed that improving the financial state of the rural poor is one of the most effective ways of reducing poverty at the bottom rung of the financial ladder.
United Needs works on projects that seek to empower rural farmers as a means of alleviating poverty and building a sustainable food economy. Their methods involve breaking down barriers to profit by connecting developing economies directly with advanced ones.
With the motto “high tech with a high purpose,” United Needs keeps technology at the heart of its strategy. In order to “cut out the middleman” preventing smallholders from accessing credit and capital, the company created a mobile app that allows farmers to directly contact microfinance institutions and buyers. Customers interested in buying in bulk can bundle crops from multiple small farmers together to build large orders.
This high tech process is creating a more connected global economy by offering opportunities for advanced and developing economies to support one another through food production and consumption.
– Jen Diamond
Photo: Flickr
Whole Planet Foundation: Benefits of Microfinance Institutions
Whole Planet Foundation, the nonprofit organization founded by Whole Foods Market, seeks to alleviate poverty in communities around the world that supply Whole Foods stores. All of the Foundation’s overhead costs are covered by Whole Foods Market, meaning 100 percent of donations go straight to community micro-lending programs.
According to the Kiva organization, “microfinance is a general term to describe financial services to low-income individuals or to those who do not have access to typical banking services.”
Microfinance encompasses a wide array of services, such as credit, savings and small loans services. Whole Planet Foundation focuses on the credit component of microfinance by supporting microfinance institutions that provide small business loans.
To ensure the efficacy and intentions of Microfinance Institutions (MFIs), Whole Planet Foundation conducts careful research. Field teams in each country first identify potential partners. After reviewing relevant information, the list of potential partners is shortened.
Each institution is visited in person by Regional Directors. The field visit allows the Foundation “to see first-hand the approach and practices of an MFI”. Once approved, MFIs are eligible to receive grants from the Whole Planet Foundation to service their clients.
The field visit allows the Foundation “to see first-hand the approach and practices of an MFI”. Once approved, MFIs are eligible to receive grants from the Whole Planet Foundation to service their clients.
The Whole Planet Foundation does not work with government-run MFIs which they have found to be “poorly run and corrupt”. The Foundation states that it has found “great success by working with MFIs with no government affiliation”.
At the same time, the Foundation acknowledges that microcredit is not a “silver bullet” that can address all the factors that contribute to global poverty. As the website notes, one loan doesn’t immediately lift a family out of poverty.
However, MFIs, when run correctly, can help people without jobs start and maintain their own businesses. MFIs give people the opportunity to invest in their own potential and create opportunities for themselves and their families.
Whole Planet Foundation currently supports over 1.3 million micro-entrepreneurs in 70 countries around the world. Of note, 87 percent of those reached globally are women. This investment has been met with success, boasting a repayment rate of 97 percent.
One entrepreneur who is benefitting from the program is a woman named Yajaris from Nicaragua. According to the Foundation, she heard about her local MFI, Pro Mujer Nicaragua, from a neighbor several years ago. She used micro credit loans as a way to expand her kiosk business. Yajaris added a variety of vegetables, drinks and cleaning supplies to her inventory.
Microloans also helped Yajaris to purchase a refrigerator and shelves on which to display the new items. Within just three years, according to Whole Planet Foundation, her kiosk doubled in size. Yajaris used her savings and an additional housing loan from Pro Mujer to build a two-room home. She rents out that property and is currently using the rental income to save up for another floor.
According to Kiva, the benefits of MFIs have been proven to go far beyond supporting small businesses. By providing people with opportunities to become self-sufficient, household economic welfare stabilizes, allowing families to better cope with the challenges they face. The success of female-run businesses, in particular, contributes to the increase in gender equality. As households succeed, communities can grow to become more empowered and educated.
– Taylor Resteghini
Photo: Flickr
How Extreme Poverty Decreased 80 Percent Since 1980
Originally from Seattle, Brooks dropped out of college early in his life to become a professional French horn player. His curiosity about a 1970’s National Geographic cover led him to research the fight against poverty.
He found that “there’s been an 80 percent decline in the world’s worst poverty,” which can be defined as those living on less than a $1.25 a day. Brooks attributes the improvement of 2 billion lives to the economic power provided by the capitalist system, a “policy” that both conservatives and liberals can get behind.
In his presentation, he highlighted five main reasons why capitalism provides the best environment for growth and prosperity: globalization, free trade, property rights, rule of law and entrepreneurship. All of these aspects of a free market emphasize economic freedom in the lives of the people who live under it.
“Capitalism is not just about accumulation,” he said during his talk. “At its best, it’s about aspiration.” Most important of all, economic freedom is something that both parties can get behind and support. It was, after all, President Obama who uttered the conservative’s favorite quote: “Free markets have created more wealth than any system in history. They have lifted billions out of poverty.”
While studies have shown that liberals and conservatives focus on different political topics, their affinity for free markets should still unite them against poverty and for freedom. Psychologists have identified a phenomenon called “political motive asymmetry” where individuals think their ideology is motivated by love and the opposite is motivated by hate.
Evidence provided by a U.N. study and a Fraser Institute study indicates that poverty decreases when economic freedom increases. More specifically, the U.N. report highlighted a 25 percent decrease in the number of people in extreme poverty between 1981 and 2005. At the same time, the Fraser Institute reported a 29 percent increase in economic freedom from 1980 to 2013.
Brooks continued his speech by challenging both liberals and conservatives to embrace arguments that they might typically be opposed to hearing. “I’m asking you and I’m asking me to be the person specifically who blurs the lines, who is ambiguous, who is hard to classify,” he says. Ending the divisiveness of the party system is only possible with divergent ideological thinking.
The current political environment in the U.S. can often limit the government’s ability to fight global poverty. Bipartisanship means compromise. In order to assist millions of those in extreme poverty, the mobilization of relief must come from both sides with productive dialogue and a collaborative attitude.
– Jacob Hess
Photo: Flickr