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Global Poverty

The Future for South Sudan

The Future for South Sudan
A year ago, Sudan and South Sudan were on the brink of war, but this month a deal between the two countries was finally implemented, allowing production in South Sudan’s main oil field to resume. This region, the Palouge oil field, accounts for 80% of the country’s oil production and has not been operational for 16 months due to disputes regarding the export of the oil.

This resumption of operations marks a significant moment in South Sudan’s brief history. Since its independence two years ago, the nation has suffered dramatic setbacks to its economy. The fledgling nation’s GDP contracted by 52% last year alone, while government revenues from oil-backed loans were cut by 98%. Now, however, with a pipeline deal in place with the north, South Sudan will be able to ramp up production to pre-independence levels.

After the drastic cuts in expenditure necessitated by the cessation of oil production during the last two years, this influx of revenue should significantly boost the country’s economy. South Sudan will have to diversify away from oil as the primary revenue generator over the next few years as reserves disappear, however, for now, the hope remains that oil profits will allow this nascent economy to establish itself. A stable economic platform marks the first steps in allowing the country and its people to grow.

– David Wilson

Sources: The Economist
Photo: Royal African Society

June 21, 2013
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Women and Female Empowerment

Fashion Fights for Rights

Fashion Fights for Rights
Fashion fights for rights. In April, a factory in Bangladesh collapsed, killing over one thousand female seamstresses. The event brought women’s rights to the surface of many discussions. To raise awareness, the women’s empowerment initiative Chime for Change organized an event sponsored by Gucci called Sound of Change Live, focusing on fashion, music, women, and how they can intertwine. The concert featured many women’s rights advocates including Jennifer Lopez, Madonna and Beyonce, to promote women’s rights to education, health, and justice.

About 50,000 fans attended the concert in person, and an estimated one billion more watched online to see how fashion fights for rights. The concert featured an interactive Twitter feed asking viewers’ opinions throughout the performance, which helped the event go viral. Sound of Change Live raised awareness of important women’s issues like domestic violence and education and was also able to raise $4 million for Chime for Change.

Sometimes the support of celebrities is necessary for action in places like Pakistan, where the voices and opinions of pop icons can grab the attention of the nation’s youth. Ultimately, more good is done once celebrity advocates for change because more people become aware of and get involved in the world’s most pressing issues.

– Katie Brockman

Source New York Times

June 21, 2013
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Aid Effectiveness & Reform, Food & Hunger, Food Aid, Food Security

Food Aid Reform Act Faces Fight in Congress

Food Aid Reform Act Faces Fight in Congress

Initial support for reforms to food aid came from both parties. It turns out everyone believes money for food aid in emergency situations should go to feed people. The problem comes when determining how that aid should work and where it should be spent. President Obama has introduced reforms to policy dating back to the Eisenhower era, but the food aid reforms have hit trouble in Congress.

The discussion is focused on whom the US should buy food in emergency situations.  Currently, the US purchases food from US farmers and ships it overseas. Reforms to food aid include using money allocated to purchase food from overseas farmers. The US is currently one of the only major food-producing nations that still ships its food overseas rather than purchasing food directly from poorer farmers.

The money involved is around $2 billion; US agriculture is expected to bring in $128 billion of profits this year, making this a small amount in comparison. For poor farmers around the world, it is life-changing. It allows farmers in developing nations to improve their crops and continue to produce and sell their goods. This amount also would help prevent food insecurity, a source of unrest in many nations. Food insecurity is often accompanied by other insecurities as well.

Nigeria’s Minister of Agricultural and Rural Development, Akinwnumi Adesina, is a major supporter of the reforms. The money would help Nigeria continue to promote national security and help farmers grow economically. The Obama plan would shift the $2 billion spent on food aid to the USAID and allow them to use it to purchase food overseas.  Farmers would get a subsidy for at least the first year to replace some of the lost profit. In addition, 55% of food aid dollars will still go to American farmers.

Food aid reforms are long overdue and a key to promoting global development worldwide. They are also a key step in helping the US keep nations secure and conflict at a minimum. The reforms will help countries like Nigeria shift away from food dependence to food independence and become growing, thriving economies.

Call your Congressional leaders today and request they support the Food Aid Reform Act (H.R. 1983).

– Amanda Kloeppel
Source: Bloomberg

June 21, 2013
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Advocacy, Food & Hunger, Poverty Reduction

Hunger in Rwanda: The Good and the Bad

Hunger in Rwanda: The Good and the Bad
In Rwanda, poverty and hunger continue to pose a major challenge for the rapidly developing country. Based on the UNDP Human Development Index for 2011, the country ranks 166 out of 187 while maintaining one of the highest population densities in Africa. The large population puts a strain on proper healthcare as well as the already limited natural resources of the country. Although the government of Rwanda, together with the World Food Program, has found that nutrition levels and food security have been improving over the last seven years, the situation is still far from optimal.

Some of the major challenges Rwanda faces with regard to poverty and hunger could be solved by foreign aid investments or direct cash donors from developed nations and foreign aid organizations. 83.7% of the population survives on $2 a day or less, and without proper disposable income, it is impossible to support families with proper food, water, and nutrition.

Up to 90% of the population engages in subsistence agriculture. This, combined with the extreme crowding and limited access to land, makes subsistence farming inefficient.

WFP’s country director for Rwanda, Jan Delbaere, weighs in on the topic, explaining that “during 2012, WFP bought 23,000 metric tons of food in Rwanda, mostly for operations in neighboring countries. This is a clear sign that Rwanda is more than self-sufficient for its staple crops. However, households with only a small area of land for cultivation simply cannot afford to access enough nutritious food to live healthy, active lives or to provide for their basic needs from their land alone.”

The WFP remains committed to supporting the government in Rwanda to increase food security and food production programs, and the country itself has chosen to sign the “Comprehensive Africa Agriculture Development Program (CAADP) compact and to secure funding, thus confirming malnutrition and food insecurity as one of the government’s key priorities.” In spite of its food insecurity, Rwanda’s GDP has been growing by 7.2% annually since 2010. With proper investment and aid, these issues can be solved, and the country set further on the right track to stability.

– Sarah Rybak

Source: WFP,Hope in Action
Photo: ESB Blog

June 20, 2013
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Global Poverty, Poverty Reduction

Poverty in Senegal

Poverty in Senegal
Senegal is a geographically and culturally diverse country with 5 languages, a desert in the north and a tropical climate in the south. This all exists within a country about the size of South Dakota. Praised as one of the most successful democracies in Africa, Senegal is making progress on many of the World Bank indicators of decreasing poverty. Yet, poverty in Senegal persists.

Challenges
Senegal still faces many of the challenges that are commonplace on the continent. Extreme weather causes crop failures, impacting the strategic economic sector of groundnuts. A ban on street beggars has taken the only source of income from many families, essentially hurting those the ban was supposed to help. Former dictator Chad Hissène Habré awaits trial, accused of ordering thousands of political killings in the 1980s.  Additionally, a “long-running, low-level separatist war in the southern Casamance region” impacts the residents and detracts from the political cohesion needed to tackle a wide range of health and education problems. These are just a few of the high-level political and economic challenges facing this country.

Improvements
Despite the difficult political, economic, social and geographic terrain facing this country, there has been steady progress over the last few years. According to World Bank data, primary school enrollment has been steadily increasing to 86%. CO2 emissions are slowly but steadily decreasing. Also, the percentage of the national population living below the national poverty line is at a 10 year low.

Poverty facts and figures
A segment of the Senegalese population suffers from chronic poverty. Chronic poverty is defined by the Chronic Poverty Research Center as poverty lasting many years and possibly over multiple generations. The chronically poor are “often multi-dimensionally deprived and may experience preventable deaths early (and so are not even counted).” In Senegal, chronic poverty has marred the last 80 years of progress. There are more chronically poor than transitional poor (people who move in and out of poverty) or the non-poor. A report by the Chronic Poverty Research Center found that not only are 60% of households “poor or vulnerable” but that there is a possibility that the poverty will be passed on to the next generation.

Events such as “loss of harvest, conflict, theft, flooding, divorce, loss of spouse, and/or loss of capital” drastically increase vulnerability. While there is little mobility between life-stages, the youth are more likely to escape poverty. Additionally, “older women [are] less likely to live in chronic poverty than their male counterparts.”

There are several other strongly correlated factors. First is an ethnic correlation. The minority ethnic groups Pulaar and Sereer are at an 83% risk of poverty, with the Dolar face an 80% risk of becoming chronically impoverished. The results on the geographic correlation to poverty yield that rural households are more likely to suffer from chronic impoverishment. Lack of education and child-labor is also strongly linked to poverty, particularly chronic poverty in Senegal.

Strategies
Social networks are an important social safety net in Senegal. Households often include multiple families who share resources and risks. The Chronic Poverty report suggests that the social network must play a key role in “developing human capital, agricultural investments, and improving food security, particularly in rural areas.” Entrepreneurship needs to be enabled via “endogenous development” in order to link development from villages to the national level. A multi-sector inclusive approach is necessary because of the currently limited economic base.

Despite the uphill battle Senegal faces in reducing poverty, progress is being made and the momentum is being put to good use. Strategies for reducing poverty are being implemented by the World Bank and the United States Peace Corps with measurable results.

– Katherine Zobre

Sources: CIA World Factbook , BBC, Huffington Post, World Bank, NPR, Human Rights Watch, Chronic Poverty Research Center, Chronic Poverty Research Center
Photo: Chronic Poverty in Senegal

June 20, 2013
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Poverty Reduction

$24 Million Invested in Flexenclosure to Reduce Poverty

$24 Million Invested in Flexenclosure to Reduce Poverty
Flexenclosure received $24 million from investors such as the International Finance Corporation (IFC) to help in their efforts to reduce poverty. Based in Sweden, the company manufactures modular data centers and corresponding power infrastructure for rural communities where construction is often difficult.  The data centers give telecommunication companies the ability to expand into emerging markets previously unavailable to them.  The expansion provides individuals in rural areas of Asia and Africa access to communication via cell phone.

The unit Flexenclosure produces houses all the telecom data and equipment is a low cost and is energy efficient. The on-site power system that runs the unity supports wireless towers with the wind, solar, and battery power. When those sources are unavailable, the unit can also run on diesel power. The power site also provides power for mobile phones, water pumps, and schools. The software manages the power for various uses and applications.

Currently, the majority of cellular base stations in emerging markets run on diesel generators for power supply which raises costs associated with the stations. Flexenclosure’s innovation power sources will help to reduce the costs and spread mobile technology further. IFC is the private equity arm of the World Bank and is supportive of Flexenclosure’s growth strategy and production methods.

A recent report on sustainable energy further supported Flexenclosure’s product. The report, Sustainable Energy for All, monitors universal access to modern energy as well as energy efficiency and renewable energy. The report finds only modest progress is being made since the report first started in 1990. Demand continues to outpace the supply of electricity and new supplies need to be affordable, sustainable, and efficient. Flexenclosure is working to create energy that follows those three standards and reduces the information gap between the rich and the poor.

– Amanda Kloeppel
Source: Sustainable Business News

June 20, 2013
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Advocacy, Aid Effectiveness & Reform

7,000 Miles Saved with Food Aid Reform

7,000 Miles Saved with Food Aid Reform
Food Aid Reform is a big topic as lawmakers are working hard to get the bill passed through Congress. The reform will modernize policy that is outdated in the current global marketplace.  The food aid reform will enable USAID to purchase more locally grown food in emergency situations rather than shipping food from US suppliers. This change will save time, money, and improve local economies and the livelihoods of local farmers.

The Food Aid Reform Act would eliminate requirements that food must be purchased from the US and sent on US ships. It would enable food to be delivered quicker and reach an estimated 2 to 4 million more people. The increased flexibility would allow on the ground organizations more freedom to make decisions and meet needs quicker. In addition to increased efficiency, the reform would lower shipping costs significantly.

Right now, USAID spends 50% of it’s food aid budget on shipping. If food is purchased in the mid-west of US, it is transported to a US port, put on a ship, and sailed 7,000 miles around the world where it is unload and transported by land to the emergency area. This does not seem like the most profitable use of government funds when food is available in many of these economies for purchase. This will allow USAID to save the 7,000 mile trek it must send food on currently. The food aid reform would also help to stimulate local economies.

Now is an excellent time to call your Congressional Representative and ask them to support the Food Aid Reform Act. Find their information here.

– Amanda Kloeppel
Source: Independent Daily European Express
Photo: House Committee on Foreign Affairs

June 20, 2013
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Extreme Poverty, Politics and Political Attention

Agit8 Concert Promotes Anti-Poverty Campaign

Agit8 Concert Promotes Anti-Poverty Campaign
Musicians from around the world performed in London this past Wednesday to support Agit8, a music-based campaign focused on raising awareness for extreme poverty. The group was launched by the One Campaign, a group co-founded by Bono and Bob Geldof. The idea was to get modern groups to record newer versions of famous protest songs.

The Agit8 concert hoped to put pressure on leaders attending the G8 summit in Northern Ireland next week. Musicians that participated included Angelique Kidjo, Paloma Faith, U2, Will. i. am, Elvis Costello, and Green Day among others. Artists appeared to live and online to participate in the event.

One of the artists at the event remarked that Agit8 is a movement to push leaders to fulfill their promises and to be held accountable.  Ending poverty will grow economies around the world and result in a healthier and more educated global workforce.  The artists involved in the campaign want to motivate a new generation to fight against extreme poverty and hunger.

The One Campaign gathered the extraordinary group of musicians together to show the world that protest often leads to progress. History has shown that and British filmmaker Richard Curtis produced a film showing this that will also be shown in conjunction with the event.

– Amanda Kloeppel
Sources:The Irish Sun, NTD Television
Photo: Yahoo Finance

June 20, 2013
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Aid Effectiveness & Reform, Developing Countries, Extreme Poverty

Economic Freedom Essential to Reduce Poverty

Economic_Freedom_Poverty
Poverty is a global issue affecting every nation on earth. Over the past hundred years, life expectancy ranged from 30 to 40 years for many people. And if they made it that far, often they did so without adequate food, clothing, and shelter. The past decade has seen massive reductions in the numbers of the global poor, but there is still much work to be done. Today, the number of people in the world living on less than $1 a day is down to around 20% and dropping.

Essential to reducing poverty is economic freedom. China and India have become leaders in economic enterprise and in improving the economic freedoms within their nations. As a result, they have seen millions of people lifted out of poverty. To back up the numbers, the Cato Institute and Canada’s Frazier Institute put out a report called the Economic Freedom of the World report. The study annually looks at five major indicators of economic freedom. Those indicators are size of government, legal system and property rights, sound money, freedom to trade internationally, and regulation. From the indicators, the report lists 141 countries in terms of economic freedom.

The report has found that countries with higher levels of economic freedom grow more rapidly, have higher per capita incomes, and greater longevity than countries with lower levels of economic freedom. The top fifth of countries had per capita incomes seven times higher than the the bottom fifth and the results among the poor are significant. The poor in the bottom tenth in terms of economic freedom had incomes of $1,061 versus poor in the top tenth who had incomes around $8,735.

The report also pointed out that income inequality does not seem to be a factor in economic freedom. As a country becomes more free, the rich do not grow richer at the expense of the poor. Rather the poor also gain an advantage.  Economic freedom improves wealth which also improves health and mortality rates especially among women and children.

People are the solution to poverty and equal distribution of economic freedom will have a greater impact on reducing poverty than redistribution of wealth.

– Amanda Kloeppel
Source: The York Daily Record
Photo: The Guardian

June 20, 2013
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Women and Female Empowerment

Arab International Women’s Forum Holds Conference

arab_international_women's_forum_conference_birzeit_global_poverty_developmnet_opt
On May 22nd, a conference for the Arab International Women’s Forum titled “Young Arab Women Leaders — The Voice of the Future” was held at Birzeit University, the first university to be established in Palestine. The Forum was a particularly momentous occasion because it marked the first time the annual forum had taken place in Palestine in the organization’s 11-year history.

In an opening address, the Forum’s founder Haifa Al Kaylani, discussed the opportunity that this year’s forum had to empower women and youth in Palestine to ensure sustainable development in the region.

The Forum, which began as an idea in London, has flourished throughout the world. Its Board of Directors is composed of names representing companies such as PepsiCo, PriceWaterhouseCooper, and the Arab British Chamber of Commerce.

Addressing these influential people, Al Kaylani noted the wealth of Palestinian expertise and talent at the conference, citing again that the education and training of the youth is a necessary investment. She also commented that such important leaderships ethics would help women “take roles as leaders and job creators working towards the social and economic recovery in their communities and the region.”

Recently, AIWF made strides to expand digitally with the launch of its online forum, co-sponsored by PepsiCo. The topic of the most recent online forum was: “What impact has the rapid growth of technology in the last decade made on gender boundaries – societally, in the home and in the workplace?” Interested parties were allowed to enter the debate from the convenience of their laptops.

– Samantha Mauney

Sources: Wafa, Birzeit
Photo: AIWF

June 19, 2013
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