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Economy, Education, Global Poverty

Three Influences of Poverty

Poverty has many causes. While some factors exacerbate poverty, there are five predominant causes of poverty: social inequality, conflict and political instabilities, education, debt and environmental conditions. Here is a closer examination of three of these causes.

Social Inequality

The United Nations Social Policy and Development Division reports that “inequalities in income distribution and access to productive resources, basic social services, opportunities, markets, and information have been on the rise worldwide, often causing and exacerbating poverty.” Countries where inequality is rampant display poor social indicators for human development, insecurity and anxiety. Inequality keeps the poor from moving out of their socioeconomic status.

Inequality limits access to opportunities that can provide the means to escape poverty. In a speech by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund, Kahn explains that Adam Smith, often considered the founder of modern economics, “recognized clearly that a poor distribution of wealth could undermine the free market system.” An example of this is the former apartheid government in South Africa.

Apartheid laws assign rights and space to individuals on the basis of race. In South Africa this meant that while one group was persecuted and forced into poverty, the other group was given access to opportunities that allowed them to advance economically. This increased the gap between economic classes and the amount of people in poverty.

Environmental Conditions

Environmental degradation is the decline in the quality of the natural environment through its atmosphere, land, oceans and lakes. Indigenous groups are among the worsetaffected by such degradation. These groups often depend on the environment to survive and easily fall into poverty when that environment is harmed. A major cause of environmental degradation is climate change.

One of the outcomes of climate change is hunger. The changing climate is responsible for the destruction of harvests and other resources critical to survival. Michael Oppenheimer, professor of geosciences and international affairs at Princeton University explains, “crop yields have detectably changed. As time goes on the poor countries that are in the warmer and drier parts of the planet will feel the crop yield decreases early.” In Oxfam’s report Suffering The Science: Climate Change, People, and Poverty, the organization warns that “Without immediate action 50 years of development gains in poor countries will be permanently lost.”

Recent U.N. reports on climate change noted that “for the first time” that climate change is a threat to human security. The UN notes that the increased migration and the decrease in food are conditions that lead to conflict. The reports warn also that unless the issue is addressed, “nobody would be immune to climate change.” The report reads, “Climate change can indirectly increase risks of violent conflicts in the form of civil war and inter-group violence.” Environmental degradation can not only result in poverty, but can also lead to war.

Lack of Education

Education has lifted people out of poverty and empowered communities to grow economically. A lack of education could maintain or create poverty. Senior Fellow of the Center on Budget and Policy Priorities Jared Bernstein explains, “economists may disagree a lot on policy, but we all agree on the ‘education premium’—the earnings boost associated with more education.”

According to the Network for international policies and cooperation in education and training, a main priority for poverty reduction is primary education. In developed countries almost all children have access to primary education, while in regions such as sub-Saharan Africa approximately 40 percent of children do not attend primary school due to poverty and a lack of access to education. Many people living in poverty in undeveloped countries must give up an education in order to make “a minimal living.” Furthermore, many families cannot afford school fees to send their children to school. This limits skill development and opportunities to escape poverty and create generational poverty.

There are many situations that lead to poverty. As we understand the causes of poverty, we can eradicate it more strategically. These are only three of many causes that must be understood to successfully meet the goal of eradicating extreme poverty by 2030. We created poverty, so we can eliminate it as well.

– Christopher Kolezynski

Sources: Poverty at Large, The Borgen Project, Oxfam, The American Prospect, The Guardian, NORRAG
Photo: The Daily Star

July 30, 2014
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Refugees and Displaced Persons

Sri Lankan Asylum Seekers in Australia

A group of 157 asylum seekers from Sri Lanka have been held at sea for over a month by Australian officials. After a long detention and questionable treatment, Australia’s immigration minister Scott Morrison has announced that the group will be brought to the mainland.

Nevertheless, the future of the asylum seekers in Australia remains unknown, as they will be brought to shore to be detained a second time until a decision is made regarding whether or not they will be sent back to Sri Lanka.

Officials have not released any information about where the group will be taken.

The group includes Tamils—a group that still faces repression and violent attacks in Sri Lanka even though the civil war ended five years ago. The civil war took place between the majority Sinhalese Sri Lankan military and the Tamil separatists.

While the Australian government claims its policies are aimed at saving lives by preventing people from boarding dangerous boats and enduring a rough journey, the conditions of Australia’s detention camps have received harsh criticism both from human rights advocates and the United Nations.

UNHCR, a department from the U.N. who specializes in refugees, has spoken up, questioning whether or not on-water screening of asylum claims is at all fair.

The Australian government has been known to enforce tough policies aimed at ending the arrival of asylum seekers on boats. Just last month Australia detained a separate boat populated by Sri Lankan asylum seekers, and returned them to their country after “screening” their claims.

Reports have also come to light noting that Australian officials have been towing boats back to Indonesia, the most common area where refugees originate.

Activists have filed a legal challenge with the goal of preventing this current group of asylum seekers from being treated the same way. Under international law, Australia cannot return refugee seekers who may face maltreatment upon returning back to their homeland.

According to Graeme McGregor, the group’s refugee campaign coordinator, asylum seekers should be given the rights to undergo a “full, fair and rigorous assessment for refugee status” regardless.

Amnesty International has voiced their opinion, which aligns with McGregor’s concerns stating, “Stranding a boatload of people in the middle of the sea, in an effort to ‘stop the boats’ has achieved nothing.”

Indian officials from the Indian High Commission will be given full access to determine the identities of the asylum seekers to see if there is a potential for any of the refugees to be returned to India.

Morrison maintains that regardless of how the rest of the claims are addressed, no members of the group will be allowed to settle in Australia. Next month, the High Court will hear the asylum seekers case.

Until then, 157 men, women and children remain in limbo—awaiting their fate.

-Caroline Logan

Sources: BBC News, ABC News
Photo: News First

July 30, 2014
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Food & Hunger, Health

Fear of Famine in Somalia

In 2011, the United Nations declared a famine in numerous parts of Somalia. The 2011 famine in Somalia took the lives of 260,000 due to malnutrition, hunger and disease. Aid organizations are warning that signs of a drought are resurfacing in Somalia and cautioning that these signs cannot be ignored.

Thanks to improving conditions in Somalia, the people in need of aid has decreased from 4 million to 2.9 million. Yet, the improved situation is now at risk of relapsing because of high food prices, inadequate funding, lack of a rainy season, displacement and conflict.

Fighting between Shebab militants, international forces and the government have driven thousands to Mogadishu, where the displaced civilians live in makeshift housing.

There are still about 2.9 million people in need of live-saving assistance as well as over 300,000 malnourished children in Somalia. The number will probably increase as conditions worsen. Aid agencies are requesting immediate support in the next few months to avoid a relapse to the 2011 famine in Somalia.

Without immediate funding, aid programs could be shut down, even despite the rise of famished people in the conflict-ridden country. The 1.1 million internally displaced people would be hit the hardest.

In 2011, it took 16 warnings and a declaration of famine before sufficient funding was made available. This time, eight warnings of a probable famine in Somalia have been released since January 2014. Earlier in July, the United Nations warned that the food crisis was expected to escalate into the “emergency phase” in Mogadishu, one phase below famine.

It is essential that leaders continue to support humanitarian and developmental work in Somalia by providing sufficient funding.

Director of Somalia NGO Consortium, Tanja Schuemer, stated that the improvements made since 2011 cannot be lost due to the world losing interest in Somalia as a priority.

“Most affected people are still recovering from the massive losses of the 2011 drought and famine. This time, we must not fail the people of Somalia,” states Francois Batalingaya, World Vision’s Country Director for Somalia.

– Colleen Moore

Sources: Norwegian Refugee Council, Cross Map, Rappler
Photo: News

July 30, 2014
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Global Poverty

Fragile States Index

Every year, The Fund for Peace – which is supported by the United Nations Foundations – publishes the Fragile States Index, which ranks 178 countries according to their stability. Stability is quantified by taking the measurements of 12 main indicators, mainly regarding the areas of political, social and economic status quo. The Fund for Peace has created the Conflict Assessment System Tool, which couples social science methodology and an analytical software to deliver the results of the FSI.

The FSI not only gives rankings but also provides valuable insight into the general stability of the world, evaluating what regions are in highly pressured conflict and why they are in that state. Oftentimes, peace is the result of stability within that government.

Therefore, measuring how vulnerable a state is essentially involves measuring the strength of the institutions established by a government. As a humanitarian crisis unfolds, whether it is due to a natural disaster or violent conflicts, the response to that calamitous event oftentimes reflects the strength of the government.

For a more technical understanding of how the FSI gives the rankings, each country is given a score out of 120 points. The points are gathered from scores in each of the 12 overarching categories, which include: demographic pressures, refugees and internally displaced persons, uneven economic development, group grievance, human flight and brain drain, poverty and economic decline, state legitimacy, public services, human rights and rule of law, security apparatus, factionalized elites and external intervention.

These 12 indicators are further broken down into sub-indicators, including factors such as food scarcity, displacement, discrimination, migration per capita, and so on – and there are more than 100 sub-indicators. After the data on the sub-indicators is gathered, the data is fed into CAST which the Fund for Peace created to fit their own search parameters and algorithms.

It is important to note that a strong government does not mean that there is stability. Many times, the government can be strong, but this can mean that they are also repressive.

Top 5 Most Vulnerable Countries in the World:

1. South Sudan, score: 112.9

2. Somalia, score: 112.6

3. Central African Republic, score:110.6

4. Democratic Republic of the Congo, score: 110.2

5. Sudan, score 110.1

As the FSI has been publishing their data annually, the greatest advantage of having such a large data set has been the ability to see the long-term trends and even predict the direction that certain countries are going as a result of their current events. There is no answer for establishing solid and transparent governments, but identifying the indicators is one imperative step in trying to build governments.

– Christina Cho 

Sources: The Fund for Peace 1, The Fund for Peace 2, The Fund for Peace 3
Photo: ViktorPersson

July 30, 2014
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Global Poverty

Cash Grants: Benefiting the World’s Poor

New research suggests that recipients of cash grants use money strategically to start businesses and provide themselves with sustainable incomes.

“We’ve been doing ‘trickle down’ for a long time before starting cash transfers and we’ve never seen the kind of impact we have with cash transfers,” says Carolyn Heinrich, professor of public affairs and economics at Texas University.

Recent studies to support Heinrich’s observation include the Transfer Project, which focused on the impacts of grants to individuals in Zambia, Ghana and Malawi. The results were positive: cash grants improve not only quality of life and overall happiness levels, but also eating habits.

The Ugandan government experimented with the idea of cash grants in 2008. Thousands of poor 16 to 35-year-olds in Uganda were grateful recipients of $382 dollars if they could provide a plan for how the money would help them start a trade. The results were analyzed by Columbia University’s Chris Blattman.

Blattman, along with his co-authors, looked at the status of the recipients in 2012 and found that they were earning 40 percent more money than before, and were 40 percent more likely to be paying taxes. So, not only were they personally benefiting from the cash grants, but the money also enabled them to contribute to society by paying taxes and providing services with their new trade.

The Ugandan case introduces the power of conditional grants within cash grants. By placing conditions on the money, cash grants can be used to enforce positive behavior.

For example, Berk Ozler of the World Bank explains that grants conditional on a child being enrolled in school resulted in 41 percent more children attending school. Programs without that condition still resulted in improved school attendance, but by only 23 percent.

Even without the conditions, cash grants can have a range of positive benefits in areas including crimes rates, children’s health, child mortality, early marriage and teenage pregnancy.

The idea of providing the poor with money is not a new one. In the 1960s, economist Milton Friedman advocated for a “basic income guarantee,” where the U.S. government would ensure all Americans make a minimum income. This would replace other aid programs the U.S. employs, such as food stamps.

Friedman’s idea is similar to cash grants – instead of giving food or supplies to those in need, give them the one tool they need to provide for themselves: money.

It was not until the 1990s, that cash grants were first distributed in Latin America. The long-term effects were enough to prompt the spread of cash grants to Africa, and then Asia.

Now, Michelle Adato, a researcher on the impact of cash transfers, says, “Cash grants are now being seen as part of a comprehensive development strategy as opposed to just a safety net.”

– Julianne O’Connor

Sources: The New Yorker, Business Week, IRIN
Photo: Business Week

July 30, 2014
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Global Poverty

Isolated Amazon Tribe Contracts Flu

Last month, a previously uncontacted Amazon tribe approached scientists from the Brazilian government. Their largest concern was the potential for disease transmission.

In a recent announcement, FUNAI, Brazil‘s Indian protection agency, revealed that several members of the tribe had contracted the flu.

Five men and two women between the ages of 13 and 21 had caught the flu. Carlos Travassos, FUNAI’s general coordinator for the operation, worked with a team including doctors and two translators to ensure the tribal members received medical care.

Once contact was made, the Indians were wary of the team’s intentions, but after long deliberation, the Indians opted for treatment.

The seven members of the tribe were taken to a FUNAI base for treatment. They remained there for five days for treatment and observation.

FUNAI researchers worry that the treated Indians may bring the flu to the other members of the tribe. Tribes that have no previous encounters with the rest of world are at a much greater risk of fatal consequences from common illnesses.

An overwhelming number of Indians in the Americas died from a series of plagues after the Europeans–bringing unfamiliar pathogens with them–arrived from the Old World. Thousands of Amazonian Indians faced death during the 19th and 20th century as a result of the rubber trade, which produced violence, enslavement and disease.

This specific tribe reached out due to increasing violence and conflict in the Amazon. Their region, near the Peruvian border, has had an increased activity of drug trafficking and illegal logging.

The Indians told FUNAI that white men have shot at the tribe.

The violence that coerced the tribe to seek contact is demonstrative of the larger critical situation. The threats that isolated tribes face are becoming more urgent and prevalent.

According to Survival International, despite reassurances from both Peru and Brazil to prevent illegal logging and drug trafficking that have displaced Indians, threats continue. Worse, the traffickers have taken over the government installation intended to monitor their behavior.

In addition to this tribe, there are at least four uncontacted tribes in the Brazilian state of Acre and two across the border in Peru. The Amazon is estimated to contain the world’s largest concentration of uncontacted tribes, with approximately 70 in the Brazilian Amazon alone.

Although this immediate problem for the tribe has been handled, long-term issues remain. The fate of the tribe largely depends upon FUNAI’s efforts to ensure long-term assistance and exclusive land for the tribe.

– William Ying 

Sources: Forbes, Business Insider, Science Magazine, FUNAI, The Washington Post, USA Today
Photo: Business Insider

July 30, 2014
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Education, Food & Hunger, Global Poverty

The 5 W’s of Rural Morocco

Who?

Over 30 million people live in Morocco. The population is disproportionately young, and 4 million of the people are impoverished. Almost half, or 43 percent, of the population lives in rural areas. The rural population is made up of “people engaged in artisanal fishing, landless people, rural wage earners, unemployed young people and women in all categories.”

What?

Morocco has an income disparity between the richest 20 percent and the poorest 20 percent. The income disparity between rural and urban areas is also very significant. The poverty rate is almost 15 percent in rural areas, but in urban areas, the poverty rate is a third of that. Furthermore, illiteracy rates are nearly twice as high in rural areas as in urban areas.

Between 2003 and 2004, 12 percent of the rural population was underweight; this is double that of the urban population.

Maternal mortality rate is 130 per 100,000 live births, and the maternal mortality rate is almost twice as high in rural areas. A very small number of rural children receive an education. Compared to the 44 percent of urban children who attend secondary school, 16 percent of girls and 22 percent of boys attend secondary school. Amongst this percentage, over 300,000 children drop out every year, and almost half of the children must repeat a year.

However, the status of Morocco is rapidly improving. From 2000 to 2010, the poor population decreased by nearly half. A slowed population growth, improved economic growth, infrastructure development, microcredit and contributions from non-government organizations have reduced poverty rates.

When?

From the 1990s until the early 2000s, the Moroccan government engaged in economic reform and deregulation of the economy. Over 100 companies were privatized by 1998, resulting in a significant growth in the country’s gross domestic product. However, the population in rural areas still experiences high rates of poverty, which results in high levels of migration to urban areas.

Where?

The high poverty rates, as evidenced, are seen mostly in rural areas. Coastal regions tend to have lower poverty rates, while Morocco’s mountain and south regions have the highest poverty rates.

Why?

As detailed by the gaps in education and maternal mortality rate statistics, the cycle of poverty rages on in rural Morocco. According to the Carnegie Papers, Morocco faces high illiteracy, and its economic growth is inconsistent. If the economy continues to improve and extend development programs to the rural population, the rates of poverty will decline. Should access to education or economic opportunity decrease, rates of poverty, particularly in rural areas, will increase.

– Tara Wilson 

Sources: Rural Poverty Portal, UNICEF, Third World Centre for Water Management, Carnegie Endowment for International Peace
Photo: AdventureCompany

July 30, 2014
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Global Poverty

Weaving a Solution to Rural Poverty in Guatemala

In the rural areas of Guatemala, poverty is both widespread and deeply entrenched. A recent study by The World Bank found that 58 percent of the Guatemalan population live on incomes below the extreme poverty line, which is defined as the amount needed to purchase a basic basket of food.

A new solution to address poverty in Guatemala has emerged in the form of bracelets and necklaces. Entrepreneur Maria Pacheco is providing a sustained source of income to over 2,000 Guatemalans with these simple fashion accessories.

Growing up in Guatemala City, Pacheco was exposed to the poverty, devastation and desperation in her native country. Pacheco yearned to improve the quality of life in her homeland through organic and native farming, which “protects and gives life and is a sustainable way to produce food.” In Guatemala, agriculture accounts for a fifth of GDP and employs about 40 percent of the country’s total labor force.

But when Pacheco set out with her biological agriculture degree to help her native people, she found that the farmers’ parched and sloping hillsides were inarable and, more importantly, not profitable. This lack of income is not uncommon in rural areas of the country, as Guatemala’s income distribution is the most unequal in the world. While the wealthiest 10 percent of the population owns nearly 50 percent of the national wealth, the poorest 10 percent owns less than 1 percent.

“Poverty is a cycle that starts with an unequal distribution of income generated between the rural and urban areas of underdeveloped countries,” said Pacheco. In these weak rural economies, education is unattainable and people cannot provide even the basic necessities for their families.

Pacheco realized that the only way to break this poverty cycle was to bring commerce to the remote Guatemalans. With this in mind, Pacheco pioneered a commerce-driven program that primarily focuses on economically empowering the women residing in rural areas of Guatemala.

“Women are a very powerful force of change, if given the opportunities,” Pacheco said, adding that “most women will typically invest 80 to 90 percent of their income in improving their children’s nutrition, health and education.” Guatemala has one of the biggest gender gaps in the world and women have limited access to jobs and schooling.

The road to prosperity begins with training through Pacheco’s sister organization, Communities of the Earth, a business incubator that targets women throughout Guatemala and teaches them how to make bracelets and necklaces. These women collaborate in small groups called “value chains” which are comprised of more than 300 individuals to craft products. The products are then sent to Kiej de Los Bosques, Pacheco’s social company which bridges the gap between local weavers and artisans in rural communities and urban markets. The women receive a monthly stipend based upon the amount they produce per order, which provides a sustained income.

“With Queta Rodriquez, my business partner, we realized it was hard to sell products to just Guatemalan communities. So we decided to start an umbrella brand that would sell an assortment of handicraft products in international markets,” said Pacheco.

This “lifestyle” brand is known as Wakami and it is currently exporting to 20 countries, being produced in 17 villages, and generating income for 450 people. According to Pacheco, the fashion accessories of the Wakami brand are meant to inspire people to “be their dream,” enjoy life and share positivity with those around them.

Wakami also partners with other social businesses or NGOs that allow women to invest in services and products that will improve the lives of themselves and their families. These include water filters, improved stoves, latrines and organic gardens.

Pacheco has observed positive changes in the rural villages thus far. “Women are now valued in their families and contribute more to decisions and investments. Also, the average weight of children has improved from eight to 30 percent and high school attendance is more than double the national rate at 92 percent,” said Pacheco.

While much progress has been made, Pacheco feels as though “this is just the beginning.” She plans to begin selling other products through the Wakami brand such as bags and scarves, and also wants to include people in rural villages from other areas of the world in the value chains.

When asked what she would ultimately like to achieve through her efforts to generate economic change, Pacheco simply said “transformation.” And, in many rural villages of Guatemala, the first steps toward transformation have already been taken.

– Abby Bauer

Sources: Wakami, Kiej de Los Bosques, Encyclopedia of the Nations, Rural Poverty Portal, World Bank
Photo: ComeTogetherTrading

 

July 30, 2014
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Activism, Health, Nonprofit Organizations and NGOs

Soccer Star Creates Kanu Heart Foundation

Nwankwo Kanu is not only the former captain of the Nigerian national soccer team, but he also goes to a great length in doing charity work. Born in Nigeria, he started to show his soccer talent on the Dutch Ajax team by scoring 25 goals in 54 performances in his first year in Ajax. He also led the Nigerian team win the Olympic Gold Medal in 1996. He was named African Footballer of the Year in the same year. In his charity path, he launched Kanu Heart Foundation, which he claimed as his proudest achievement. At the same time, he is a UNICEF ambassador.

Just after winning the Olympics, he was diagnosed with a heart valve defect, underwent surgery and did not return to his career for almost a year. Because of his experience, he started his Kanu Heart Foundation to make sure children with heart problems are able to obtain heart surgeries, especially underprivileged children in Africa. Through this organization, hospitals provide surgical heart transplants, laser surgeries and more.

“These kids remind me of when I was growing up as a little boy,” Kanu said to BBC Sport. “There’s no amount of success on the football pitch that can give me more smiles than the numbers of lives I’ve touched.” He wants to put smiles on the face of every child who deserves the chance to pursue their dreams.

According to its official website, the Kanu Heart Foundation has undertaken 452 open heart surgeries since the foundation was first established in 2000. All sponsored surgeries are done in countries such as England, Israel, India and Sudan. The Cardiac Specialist Hospital will offer free surgeries for children from 1 to 12 years old and those for adults will be subsidized.

– Jing Xu

Sources: BBC News, Wikipedia, Kanu Heart Foundation 1, Kanu Heart Foundation 2
Photo: Connect Nigeria

July 30, 2014
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Global Poverty

Modern Education in Pakistan

Education in Nicaragua
When it comes to education in Pakistan, there’s no beating around the bush: the country is home to one of the worst education systems in the world. Over 5 million children in Pakistan are out of school. This is the second highest number of out-of-school children in the world, amounting to one in 12 of the world’s out-of-school children.

All told, nearly 50 million adults in Pakistan are illiterate. That represents the third largest illiterate population globally.

And worst of all, Pakistan’s meager spending on education is declining. Education spending in Pakistan dropped from 2.6 percent of the nation’s GDP in 1999 to 2.3 percent in 2010.

The ramifications this has on the people of Pakistan are devastating. Twelve-year-old Fatma goes to school in an abandoned brickyard, one of about 20,000 “shelterless” schools in Pakistan.

“I study at the Government Primary School in Lahore,” Fatma said. “I study English language, and I like it. There are no chairs. We have to sit on the ground. It’s a problem in the winter. When it rains there is nowhere to sit.”

Those schools that are bonafide buildings are not much better off. Sixty percent of these buildings have no electricity, while 40 percent lack access to drinking water.

According to some, the abysmal state of education in Pakistan is the result of a war between the powerful elite and the impoverished masses. Some claim that the rich in Pakistan are purposefully keeping the poor illiterate to stay in power.

Frustrated, one of Fatma’s school council members has said, “Government officials send their own kids to air-conditioned classrooms. Let’s see them make their kids sit here and see what it is like!”

Indeed, disparities in income mean that the most privileged group will receive a far better education in Pakistan. Ninety-one percent of the richest members of society complete their primary education, while only 26 percent of the poorest can say the same.

Still, education in Pakistan for the rich and the poor alike remains dismal. The poor hold classes outdoors, while the main luxury for “rich” schools is air-conditioning.

Yet there is hope for education in Pakistan. USAID has established a set of lofty goals that would significantly improve the quality of education in the country. The organization plans to “bring 3.2 million children to read at or above their grade level by 2018.” Furthermore, USAID has pledged that 120,000 children will get access to new schools. For many of them, it will be their first time in a school with a roof.

There is reason to hope that USAID can accomplish these goals. In the past three years, the organization has built or renovated over 600 schools while also supplying those schools with new computers and books. Similarly, USAID has trained 15,000 teachers and administrators since 2009.

In the end, only time will tell if Pakistan can overcome its pervasive inequality and government spending issues to turn its failing education system around.

– Sam Hillestad

Sources: UNESCO, USAID, PBS, WIDE
Photo: Pakistan Today

July 30, 2014
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