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Aid, Global Poverty, NGOs

Financial Assistance Schemes for Singapore’s Low-Income Families

Financial Assistance Schemes for Singapore's Low-Income Families Financial assistance schemes in Singapore aim to help low-income families equip their children for future success. Despite challenges in measuring poverty within Singapore, data reveals that the country ranks 26th out of 136 nations for income inequality, making it the second most unequal in Asia. A primary cause of global poverty is the inability of low-income families to provide education for their children, which often leads to high unemployment rates and significant poverty levels. This issue is a concern in Singapore, but the government has recently implemented measures to tackle it, reflecting a commitment to addressing income disparity and promoting educational opportunities.

Impact of Poverty on Educational Success

Studies indicate that poverty significantly impacts children’s ability to succeed in educational settings. Children born into poverty from birth to age 2 are 30% less likely to complete high school, severely limiting their future opportunities. Those who do not finish high school often struggle to find employment as adults. Research by the Center for Universal Education has revealed that millions of children reach adolescence without acquiring basic skills. In developing countries, individuals lacking skills contribute to higher poverty rates. UNESCO reports that 59 million children are out of school.

Government and Organizational Support for Education

The Singaporean government, along with organizations like the Ministry of Education Financial Assistance Schemes (MOE FAS), actively provides financial aid to low-income families to help cover school-related expenses. For primary and secondary school students, MOE FAS completely covers school fees, standard miscellaneous fees, school uniforms, meals, transportation subsidies and textbooks. For pre-university students, the organization provides all the aforementioned support plus a $1,200 cash bursary.

Extended Financial Aid

Ongoing financial assistance schemes extend beyond primary and secondary school students. The Singaporean government subsidizes a large portion of educational costs for citizens pursuing higher education at publicly-funded institutions. Additionally, the Ministry of Education provides financial relief to students in Special Education (SPED) programs. The SPED Financial Assistance Scheme (SPED FAS) offers waived school fees and supplies materials for low-income families with students who have disabilities.

The Role of Subsidized Education in Social Inclusion

The Ministry of Social and Family Development reports that a subsidized education is a key component of the Singaporean approach to social inclusion and social mobility. Subsidized education is reportedly instrumental in the creation of equal opportunity. Moreover, ensuring a quality education is a conduit for what the ministry calls “leveling up,” which involves ensuring that students who come from disadvantaged backgrounds can still become successful and stay on an educational track.  

Looking Ahead

Singapore’s financial assistance schemes aim to provide low-income families with greater access to educational resources. By expanding these initiatives, the government seeks to address income inequality and improve social mobility. As these programs continue to develop, they focus on enhancing educational opportunities for young Singaporeans and contributing to a more equitable society.

– Hailey Nurry

Hailey is based in Pennsylvania, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Flickr

June 18, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2024-06-18 07:30:392024-06-17 10:49:09Financial Assistance Schemes for Singapore’s Low-Income Families
Global Poverty, Housing Security

Safe and Sustainable Housing for Rural Communities in Cambodia

Safe and Sustainable HousingDespite the stunning natural landscapes and architecture, Cambodia struggles with poverty among its population. According to the Asian Development Bank (ADB), 17.8% of the population lived below the poverty line in 2019, while “the proportion of employed population below $2.15 purchasing power parity a day in 2023 was 20.5%.” Additionally, 24 per 1,000 children die before the age of 5 and the country struggles with a housing crisis, with many families not having access to safe and sustainable housing. 

Planète Enfants & Dèveloppment (PE&D)

Some of the areas that the housing crisis affects the most are rural villages outside of major cities. Two of the biggest factors include habitat and living conditions and a lack of safe and sustainable housing. Planète Enfants & Dèveloppment (PE&D) launched the Habitat and Living Conditions Improvement project in the hope of helping poor communities in Phnom Penh in 2018. 

This project builds on a previous partnership with local partner Samathepel Khnom Organisation (SKO) and aims to support residents living in informal settlements around the Phnom Penh area. Its primary goal is to improve the security of homes and develop community organization and action. Family support and training also added to the project and this includes domestic and gender-related violence. 

PE&D is a child protection organization that focuses on the safeguarding of vulnerable children. By providing support, education and resources, it focuses on responding to the urgent needs of children in danger to educate, grow and integrate them as the future of the world. For almost 40 years, PE&D’s goal has been to alleviate children from poverty and give them a chance to grow and develop into adults. 

Working With Local Authorities

Another branch of PE&D’s project includes working with local NGOs and meeting with local authorities every six months to strengthen ties with these rural communities and build trust, according to the Urban Sustainability Exchange (USE). A better relationship with local authorities and supporting residence groups enables communities to improve their living conditions and also campaign for land rights to push the government to recognise the basic right for people to have housing. 

In Cambodia, land rights complications make enforcing and practising upgrading housing difficult. However, this project tries to give residents access to finances so that they can make home improvements themselves. This housing project is also addressing issues of gender-based violence inequalities, a theme which PE&D specializes in. 

Through its connections with local aid groups and NGOs, the PE&D project involves eight large informal settlements which are home to around 10,000 people. Vulnerable families are given priority to housing, especially those who are either currently living in unsafe homes and women at risk of or who are experiencing domestic violence, according to the World Habitat.

Sustainability Training

So far, the project has improved 88 homes and upgraded them to structurally safe, trained 297 people (190 women) to use sustainable construction methods and provided social support to 206 families in the area, the World Habitat reports.

PE&D’s work has also allowed 152 people, 124 of which are women to get Participatory Approach for Safe Shelter Awareness (PASSA) training, which refers to a specific method of disaster risk prevention of shelter safety. These people also get supplementary training relating to financial education and gender issues for 140 people, 100 of those being women. Other training topics include savings, credit groups and family support, according to the World Habitat.

Housing and Poverty

Housing is vital to alleviating poverty around the world. Every human should have a basic right to safe and sustainable housing and this project aims to bring just that to struggling communities in Cambodia. Without housing, it is difficult to find a stable income and provide essentials for families such as food and water. 

Unstable living arrangements also often mean an increased risk of domestic violence, health issues, depression, child abuse, neglect and food insecurity. Safer and sustainable living arrangements for people suffering from poverty give them a greater chance of getting out of their current situation.

Before PE&D started its project, in the around 300 informal settlements in and around Phnom Penh, poverty was everywhere and most homes consisted of precarious and makeshift housing. Other issues with these rural communities include poor sanitation and hygiene, makeshift housing, a lack of land for people to live on, high unemployment, and a lack of security and services, according to the World Habitat.

Projects like this are helping alleviate poverty around the world and are providing humans with their right to essentials such as food, water, hygiene and safe and sustainable housing.

– Lachlan Wellington

Lachlan is based in Fareham, Hampshire, UK and focuses on Technology and Global Health for The Borgen Project.

Photo: Unsplash

June 18, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2024-06-18 01:30:462024-06-17 10:38:43Safe and Sustainable Housing for Rural Communities in Cambodia
Child Poverty, Developing Countries, Global Poverty

The Socioeconomic Situation of Children in Syria

Children in SyriaFor a little more than a decade, the children of Syria have continued to bear the blows of the country’s socioeconomic and political crisis. In 2022, the United Nations Children’s Fund (UNICEF) revealed that around 2.4 million Syrian children no longer attend school, while an additional 1.6 million children were tethering with the idea of dropping out. The lack of adequate funding from the Syrian government has only worsened this epidemic since the national budget for education dropped from 7.1% in 2021 to 3.6% in 2022. Poverty within the family unit thus forces all members to become active contributors, children included.

Children Bear the Burden

Syria remains a country deeply devastated by the ravages of war, with more than 90% of its population living in poverty. A study conducted in 2022 by UNICEF concluded that an estimated 14.6 million Syrian civilians were in need of humanitarian aid. The most affected of this group of individuals was children, with more than 6.5 million in need of assistance.

Syrian children bear the burden of the conflict as many are forcibly pulled from school and thrust into the labor force in an attempt to salvage their family’s crumbling economic state. The Syrian Response Coordination Group detailed that child labor remains an ongoing issue in Syria, specifically among the displaced. The group reported that more than 37% of children between the ages of 14 and 17 are active participants in the labor force.

The humanitarian group also reveals that of the 85% of Syrian children who no longer attend school, 318,000 sought work. Though the exact professions vary, some include physically compromising trades. Young boys occupy positions in these dangerous trades, while young girls tend to take up work in agricultural fields. Bassel Muhammad, a shopkeeper in Idlib City, tells Syria Direct, “No business is empty of children, to say nothing of street vendors.” Muhammad then shares that he has employed two children, one 13 and the other 15, both of whom have left school to provide for their families.

A Changed Generation

Though child poverty persists in Syria, various initiatives have been taken to combat it. In 2013, UNICEF and World Vision joined forces to create No Lost Generation, a program that campaigns for the rights of Syrian youth. With the financial support of various donors, nongovernmental organizations (NGOs) and United Nations (U.N.) agencies, the initiative focuses on education and child protection.

Another initiative advocating for the rights of Syrian children is Mart Team, a Damascus-based charity. Through its campaign “Aqlamouna Amalouna,” meaning “Hope in our pens,” the charity aims to provide aid to students in need. In an interview conducted by Arab News, Marwan Alrez, the General Manager of Mart Team, states, “Parents have told us that schools demand hefty fees, prompting many of them to remove their children from school and force them into the labor market in order to contribute to household earnings.”

Alrez reveals that the average cost of school supplies for a single student is around 200,000 Syrian pounds, an estimated equivalent of $16. This places a great strain on the average Syrian household since many employed individuals only earn 185,940 Syrian pounds (about $14.8) monthly. Alrez’s charity initiative has helped an estimated 300 primary students meet their needs, whether for school supplies or school fees.

World Vision has also focused on the cause of Syrian children and developed six educational-based projects. These projects provide children in need with lunches, hygiene packages and school supplies. Furthermore, the Syrian government has noted this growing issue and has asked that schools be more lenient with their demands, whether regarding uniform policies or certain school supplies.

Final Remark

Adele Khor, UNICEF Regional Director for the Middle East and North Africa, proclaims, “A generation of children in Syria have already paid an unbearable price for this conflict.” Despite all of the admirable efforts from various groups, the Syrian children’s plight remains an issue. 

– Yasmine Nowroozi

Yasmine is based in Laval, Quebec, Canada and focuses on Global Health and Politics for The Borgen Project.

Photo: Flickr

June 18, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2024-06-18 01:30:072024-06-17 10:43:55The Socioeconomic Situation of Children in Syria
Global Poverty, Women and Female Empowerment, Women's Rights

Addressing Gender Wage Inequality in Uganda

Addressing Gender Wage Inequality in UgandaDespite Uganda making significant strides in women’s participation in the labor force, wage disparities continue to reflect broader gender inequalities in the country’s workforce. Women in Uganda face substantial wage disparities compared to men, with women earning 32.3% less than men monthly. This stark reality highlights the ongoing issue of wage inequality in Uganda.

Household Dynamics and Marital Status

In Uganda, labor market participation varies significantly between men and women, influenced by household type and marital status. Men consistently have higher employment rates across all categories. The gender employment gap is smallest in single-person households, at 3.9 percentage points (p.p). This gap increases slightly to 4.1 p.p for households with one child and 4.6 p.p for those with two children. The largest disparity occurs in households with more than one adult and no children, where the gap widens to 10.8 p.p. Marital status further affects this gap, with married women facing more significant challenges in the labor market than their single counterparts, often due to childcare and family responsibilities. Additionally, the gender employment gap widens among individuals with secondary and tertiary education, particularly as the number of children in the household increases. This complexity is another facet of wage inequality in Uganda.

Working Hours and Education

Analysis reveals that women tend to work fewer hours than men across all education levels. While women aged 15 to 24 work more hours, the gap widens as they enter older age brackets, with women aged 25 to 64 working significantly fewer hours. Moreover, occupational segregation is particularly pronounced among individuals with secondary education, where more than half of women and men would need to swap jobs to achieve occupational parity. 

Occupational Segregation

Occupational segregation plays a significant role in perpetuating gender wage disparities. Women in Uganda often work in lower-paying sectors such as agriculture, informal trade and domestic work. Men, on the other hand, dominate higher-paying sectors like manufacturing, construction and technology. In the highest-skill occupational group, which includes legislators and managerial workers, women are also underrepresented across all categories. Interestingly, in this group, women earn 8.5% more than men on average. However, a glass ceiling is evident, as the gender pay gap is larger among the top 10% of wage earners.

Government Efforts to Address Gender Wage Inequality

Although the government has made significant strides in fostering gender equality through its policies, gender inequality persists. Uganda has formulated gender-responsive policies and strategies to enhance gender equality and empower women and girls, in line with the constitution, which prohibits discrimination and promotes women’s rights.

Key initiatives include:

  • National Development Plan (NDP II) (2015–2020). Emphasizes affirmative action and gender equality in national planning.
  • National Gender Policy (2007) and National Action Plan on Women (2007). Guide gender mainstreaming across sectors.
  • Integration of Global Agenda 2030 Sustainable Development Goals (SDGs). Particularly focusing on SDG 5, which aims to achieve gender equality and empower all women and girls.

High-level policymakers have developed and endorsed a comprehensive set of priority gender indicators, known as the National Priority Gender Equality Indicators (NPGEIs). These indicators, aligned with global commitments, integrate into the national standard indicator framework to systematically track progress on gender equality.

Recommendations by the World Bank

The World Bank proposed that to close gender gaps in economic empowerment, policy actions need to be taken in three key areas:

  • Provision of Support to Growth-Oriented Enterprises. This involves supporting women entrepreneurs to help them transition from micro-enterprises to larger, more profitable businesses.
  • Addressing Women’s Time Poverty. Expanding access to early childhood education programs and implementing appropriate childcare models are essential to alleviate the care burden on women, allowing them to complete their education, acquire marketable skills and work outside the household.
  • Re-orienting Employment Programs. A dedicated government agency should focus on transitioning women from subsistence-level work to more growth-oriented sectors. This requires national strategies that recognize women’s diverse skills, set clear participation targets and include a high-level champion to guide these efforts.

Looking Forward

Uganda’s commitment to bridging the gender wage gap holds promise for more equitable economic development. Targeted policies and ongoing initiatives aimed at supporting women in the workforce could foster significant progress in combating wage inequality in Uganda. With continued governmental and community support, Ugandan women can potentially achieve greater economic empowerment and contribute more fully to the nation’s prosperity.

– Teniola Yusuf

Teniola is based in the United Kingdom and focuses on Good News for The Borgen Project.

Photo: Flickr

June 17, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2024-06-17 07:30:442024-06-17 01:53:40Addressing Gender Wage Inequality in Uganda
Global Health, Global Poverty, Technology

How Paper Technology is Supporting Postural Care in Kenya

How Paper Technology is Supporting Postural Care in KenyaIn Kenya, the joint partnership between APT for Social Development (APT4SD) and The Potters House has been instrumental in providing bespoke postural support devices for people with disabilities. APT4SD secured a grant of £14,232.00 from the Wales and Africa Grant Scheme in 2022-23 to carry out this work. In addition to its activities in Kenya, the charity also conducts workshops in Wales to teach Appropriate Paper Technology (APT) skills for mental health and emotional wellbeing. The training in Kenya focuses on enabling nurses to identify children needing postural care and training artisans to create customized furniture, which also helps fund the project by selling household items.

Understanding Appropriate Paper Technology (APT)

Appropriate Paper Technology (APT) offers an affordable solution by recycling materials like cardboard, paper and nylon tights into sturdy, lightweight support devices. At the Potters House CBO workshop, the construction process involves layering thick cardboard with a flour and water mixture and reinforcing it with used nylon tights. These support devices are then covered with old newspapers or paper bags and decorated. This method not only provides essential support to children in need but also facilitates financial support for their families through employment in device production.

Impact and Outreach of the Project

The project’s impact is significant, with 145 support devices created and 721 children and adults benefiting from the services. The project has established new APT workshops and trained 17 Kenyan therapists in postural care. These ongoing initiatives demonstrate the project’s commitment to providing immediate aid and promoting sustainable development through education and skill-building.

NHS Education for Scotland highlights the importance of postural care in preventing complications in various body parts such as hips, knees, spine and pelvis. Without appropriate care, individuals can suffer from severe physical deformities and health issues, impacting their ability to perform daily functions and reducing their quality of life.

Poverty Alleviation

The importance of postural care in Kenya extends beyond individual health to address broader socioeconomic challenges. According to UNICEF’s 2022 report, more than half of Kenyans face multidimensional poverty, with even higher rates among children with cerebral palsy. The efforts of APT4SD and The Potters House play a vital role in supporting impoverished families, illustrating the critical link between health care interventions and poverty alleviation.

Looking Ahead

The innovative approach of Appropriate Paper Technology (APT) promises to expand its impact, offering sustainable postural support and livelihood opportunities across Kenya. Continued collaboration between local and international partners could be crucial to enhance the scope and reach of these empowering projects. Moreover, by addressing the intertwined challenges of health and poverty, APT4SD and The Potters House are paving the way for a more inclusive and supportive future for individuals with disabilities.

– Rachael Denton-Snape

Rachael is based in High Wycombe, UK and focuses on Technology and Global Health for The Borgen Project.

Photo: Pixabay

June 17, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2024-06-17 07:30:182024-06-17 01:58:38How Paper Technology is Supporting Postural Care in Kenya
Disease, Global Poverty, Health

Efforts and Successes in Combating Disease in Sri Lanka

Disease in Sri LankaSri Lanka, the neighboring island nation to India in South Asia, is a developing country making many efforts to increase its standard of living. One of these central efforts is the fight against disease and illness, which Sri Lanka has reduced with great success. Malaria, Leprosy and noncommunicable diseases (NCDs) have been reduced or eliminated from the country.

The Efforts

Disease in Sri Lanka comes in two forms: communicable diseases and NCDs. Considering the side of communicable diseases, Sri Lanka has taken great strides to reduce two of the most prevalent diseases within the nation: Malaria and Leprosy.

The Anti-Malaria Campaign (AMC) has taken on malaria and its prevalence within the region in full force. This initiative, supported by country collaborations, technical leadership and financial investments from the World Health Organization (WHO) and the Global Health Fund, has supplemented a national budget dedicated to the fight against malaria.

Leprosy shares a similar story. Successful campaigns and efforts against the disease caused Sri Lanka to experience a considerable decline in the prevalence of leprosy in the years following 1983, with the introduction of multidrug therapy (MDT) by the WHO.

However, communicable diseases in Sri Lanka were only responsible for 14,265 deaths in the year 2019. In contrast, NCDs such as heart disease and diabetes were responsible for the deaths of 96,072 people in the same year.

Public Health in Sri Lanka

Public health in Sri Lanka relies not only on funding from the WHO and the Global Health Fund but also on grassroots efforts to educate the public about the dangers of a sedentary lifestyle. Managing NCDs requires a preventive care approach, leading to a reorganization of the country’s health care system through the globally funded Primary Health care System Strengthening Project (PSSP). This project aims to support the government in enhancing the utilization and quality of health care, with a primary focus on the detection and prevention of NCDs.

The Successes

Since the turn of the century, Sri Lanka has made excellent progress in reducing the prevalence of malaria—the total number of cases in Sri Lanka was reduced by 78%, from 22.9 million to 5 million. The budget from the Global Health Fund and the WHO supplemented the efforts to successfully eradicate malaria as a common disease in Sri Lanka.

Leprosy has also wavered greatly in recent years. Assisted by the creation of MDT by the WHO, the country achieved a WHO elimination goal of leprosy cases, yielding less than one for every 10,000 people in the population by the turn of the 21st Century. The formative research provided by outside organizations, along with the campaign’s efforts to increase social awareness about the disease and its communicability, successfully reduced the rate of Leprosy.

NCDs are also being addressed, however, in a drastically different manner than that of communicable diseases. The people in Sri Lanka have been informed of the dangers of communicable diseases yet are ill-informed of the dangers of a sedentary lifestyle and how being proactive is healthy for the body. This is being curbed through efforts established by the PSSP and its association with Primary Medical Care Institutions (PMCI).

Primary Medical Care Institutions

According to the World Bank, curative primary health care services in Sri Lanka are delivered mainly through PMCI. This includes district-level hospitals and Primary Medical Care Units situated around the nation. In March 2022, about 350 of the 1,030 PMCI in Sri Lanka were strengthened under the PSSP initiative. However, by the end of the project in 2023, this number reached a minimum of 550.

The lack of information regarding the dangers of a sedentary lifestyle is slowly being overturned through an increasingly active information campaign. Alongside this are initiatives to raise awareness of the importance of daily exercise and how a proper diet is beneficial to overall health. These efforts by the PSSP are effectively paving a path toward a healthier nation.

Final Remark

Sri Lanka has yet to eradicate diseases completely. Even with the successful efforts to combat malaria and leprosy, there is still a great risk of their return. Diseases are always on the cusp of coming back. However, with the continued dedication of organizations around the world and commitment from the leadership of Sri Lanka, it will always be at the forefront.

– Luke Scroggins

Luke is based in Dallas, TX, USA and focuses on Technology and Global Health for The Borgen Project.

Photo: Flickr

June 17, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2024-06-17 01:30:252024-06-17 01:48:35Efforts and Successes in Combating Disease in Sri Lanka
Charity, Global Poverty, NGOs

Charities in England You May Not Know About

Charities in EnglandNongovernmental organizations (NGOs) or charities play important roles in the fight against poverty worldwide. NGOs work directly with local communities, providing targeted support to the most vulnerable populations.

In the United Kingdom (U.K.), where 22% of the population experienced poverty in 2021/2022, charities are essential partners in the fight against poverty, complementing government efforts and driving sustainable changes. Here are five charities in England and the wider U.K. that you may not know about:

Greggs Foundation

The Greggs Foundation focuses on setting up breakfast clubs across England, Wales, Scotland and Northern Ireland. Supported by local businesses, these clubs provide fun and food to children before their school day. The foundation has set up 900, helping to feed more than 62,000 children daily. The work it does enables children to face a day of learning with a nutritious breakfast, allowing them to focus on expanding their knowledge.

British Gas Energy Trust

Best known for fueling the nation, quite literally, British Gas also has an energy trust that aims to alleviate fuel poverty. With the cost-of-living crisis, energy bills have soared for many families, meaning people increasingly have to choose between heating their homes and putting food on the table. The energy trust, however, aims to offer support and provide grants for those who are facing this issue. So far, the trust has helped 700,000 people through its grants and schemes.

Refugee Action

Focusing on refugees and migrants, Refugee Action is a U.K.-based organization that aims to fight for better living conditions for those seeking asylum. Centered around a collaborative and inclusive approach, the charity aims to support and advise those entering the U.K. With an ambitious approach, the organization seeks to improve the prospects for all refugees. In 2023, the charity helped 3,000 people and resettled 1,700 refugees, making the work it does vital.

Together Women

Together Women is another of the charities in England but is mainly concentrated in the northern part of the country. Its key target is women who may be vulnerable to entering the criminal justice system. Additionally, the charity aims to support those who are at risk of homelessness. The goals that its centers achieve through support groups and courses are crucial. By supporting at-risk women, the life prospects for those most in need are heightened.

Turn2us

Turn2us has been operating for more than 125 years and provides support for those facing financial insecurity. Its key aim is to support older adults who may be facing poverty through its nine care homes situated across the U.K. The charity also provides key grants to those who are at risk of greater financial insecurity.

– Sarah Littleton

Sarah is based in London, UK and focuses on Good News and Politics for The Borgen Project.

Photo: Pexels

June 17, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2024-06-17 01:30:062024-06-15 13:18:08Charities in England You May Not Know About
Economy, Financial Instruments, Global Poverty

The Declining Yen and Its Impact on Japan

Declining YenDespite its small size, Japan has consistently ranked as the world’s third-largest economy, following the United States (U.S.) and China. However, in 2024, the country fell to fourth place, overtaken by Germany. Japan has experienced a declining yen, its weakest in history, leading to a rapid economic decline. Businesses relying on imported goods are facing even greater economic challenges. Several factors contribute to Japan’s economic difficulties and this stagnation poses significant concerns for the country’s future.

Reluctance to the Digital Shift

Japan remains one of the few analog societies, still relying on fax machines and cash while retaining traditional methods. This digital gap stems from Japanese companies’ reluctance to adopt information and communications technology (ICT) and a fixed mindset. Renowned tech companies like Sony, successful in the past, resist adapting to new technologies. Additionally, the COVID-19 pandemic exacerbated this issue. While much of the world shifted to remote work, many in Japan continued working on-site, missing opportunities to embrace digitalization.

Japan’s Economic Golden Age

In the 1960s, Japan’s economy flourished, opening to world trade and focusing on exporting goods. The Income Doubling Plan of 1960, which aimed to boost Japanese income through enhanced government support for social welfare and education, played a significant role. During this period, Japan emerged as a leading manufacturer of electronics, automobiles, metals and chemicals. Companies such as Sony, Nikon, Canon, Toyota, Honda, Mazda, Mitsubishi and Suzuki dominated the international market by emphasizing high-quality and high-technology products.

The Economic Bubble Burst

In the 1980s, Japan’s economy grew rapidly, with soaring stock prices, real estate values and the Yen’s strength. This period of economic excess is known as the bubble economy. However, the bubble burst in 1992 when the Bank of Japan raised its interest rate. This led to a stock market crash and a steep decline in asset prices. Since then, Japan has faced economic stagnation, a period often referred to as the lost decades.

The Dilemma of Low Interest Rates

The Bank of Japan has maintained a low-interest rate for decades, contributing to the continuous decline in the value of the Yen. Higher interest rates can boost a currency’s value by attracting foreign investment, which is why countries often raise rates to curb inflation. For instance, the U.S. increased its interest rate during the COVID-19 pandemic to stabilize the dollar. Conversely, lower interest rates can reduce a currency’s value but are used to stimulate economic activities such as borrowing, spending and investing. In Japan, the strategy to drop interest rates to near zero was intended to encourage consumer spending. However, this approach backfired by making the economy less attractive for foreign investment and further decreasing the Yen’s value.

Path Forward for Economic Recovery

Over the years, Japan has resisted raising its interest rates despite economic stagnation. With low demand for the Yen, Japan feared that higher rates would exacerbate its ability to pay off debts. However, in March 2024, for the first time in 17 years, Japan increased its interest rate from 0% to 0.1%, ending its negative interest rate policy.

By 2026, Japan will face a shortage of 2.3 million digital workers due to a fundamental lack of digital skills. Embracing a digital shift to enhance technology promises to spur economic growth. Additionally, gradually raising the interest rate at a steady pace could eventually strengthen the value of the Yen.

Focusing more on tourism offers another avenue to alleviate economic stagnation. Currently thriving due to the declining Yen, Japan’s tourism industry benefits from government efforts to attract more foreign visitors. In 2024, visitor numbers from the U.S. and Germany, where currency strength outpaces the Yen, surged by 64.3%. The weakened Yen draws tourists looking for cost-effective travel options, presenting an opportunity for Japan. By actively attracting international visitors, Japan could leverage its economic challenges to bolster the tourism industry, potentially significantly contributing to the gross domestic product.

Looking Forward

Japan’s decision to increase interest rates and its openness to digital transformation offers hope for economic revitalization. As Japan adapts to global digital trends and continues to enhance its tourism sector, it sets a path toward overcoming decades of economic stagnation and the declining yen. These ongoing strategic shifts promise to gradually restore the strength of the Yen and reinvigorate Japan’s global economic standing.

– Eunsung Koh

Eunsung is based in Seoul, South Korea and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

June 16, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Precious Sheidu https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Precious Sheidu2024-06-16 07:30:502024-06-15 08:58:36The Declining Yen and Its Impact on Japan
Electricity and Power, Global Poverty

Renewable Energy in Papua New Guinea Forges a Brighter Future

Renewable Energy in Papua New GuineaWhen it comes to expanding the use of renewable energy to produce electricity in Papua New Guinea (PNG), its government has industrious plans. It aims to supply power to 70% of the country’s population by 2030 and reach 100% by 2050. In a nation where, at this time, only 20% of people have access to reliable electricity, this scheme would change lives. Solar energy plays a big part in that transition and aids in bridging PNG’s healthcare inequality gap and fighting gender-based poverty.

Keeping the Lights on To Save Lives

According to the World Bank, about 85% of PNG’s citizens live in rural communities. For that populace, receiving medical treatment can often be a toil due to a lack of transport infrastructure or struggling health care facilities. This has led to plights such as low children vaccination rates and insufficient care for expecting mothers and as a consequence, PNG has one of the highest documented mortality rates for both groups in the Western Pacific region.

One solution to these problems is to supply clinics with their own energy sources, which is exactly what one hospital in the Nipa-Kutubu district located in the Southern Highlands province did. The Pimaga Rural Hospital frequently had to refer patients to the Mendi General Hospital, which was two hours away.

However, with help from the United States Agency for International Development (USAID) and Santos, an international energy corporation, the Pimaga Rural Hospital installed 207 solar panels on its roof. With an uninterrupted flow of electricity, the hospital can now provide consistent treatments and care.

Solar Power for Equality

High maternal mortality rates are just one of the health issues that women living in provincial PNG face. Because women are often responsible for most household chores, they are at a higher risk of lung illnesses caused by air pollution from wood cooking stoves. Arduous domestic duties also mean that women don’t have as much time to partake in economic opportunities.

For women in PNG, the cycle of poverty can begin at a young age since daughters are usually their mothers’ helpers. Consequently, girls are excluded from education and have more limited prospects. Solar energy would provide a means to not only create safer and healthier living environments, but it could also cut labor for women and girls, leaving them to pursue educational or economic endeavors.

The organization Solar Buddy is part of the effort to electrify PNG and saw that solar panels could also help women who run small businesses from their homes, which mainly consist of selling homemade goods. According to Solar Buddy, “solar lighting access can allow women to draw in more customers and extend their working hours.” Having an income can give women financial freedom and lift them and their families out of poverty.

Conclusion

Harnessing the sun’s power isn’t the only renewable energy option in Papua New Guinea: hydropower, geothermal resources and wind turbines could also be utilized to reach PNG’s clean energy goals. During the development time of larger projects, mini-solar grids can provide easier access for impoverished regions to improve the quality of life of the people who inhabit them.

– Melissa Harper-France

Melissa is based in Saint Paul, MN, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

June 16, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2024-06-16 07:30:372024-06-15 09:03:54Renewable Energy in Papua New Guinea Forges a Brighter Future
Economy, Global Poverty, Government, Inequality

Balancing Prosperity and Income Inequality in Luxembourg

Income Inequality in LuxembourgEconomically, Luxembourg is rated one of the most affluent and prosperous countries in Europe. Acclaimed for high standards of living, a strong economy and a strategic geographical position to become a doorway for international business, the Grand Duchy has made its own identity in the international arena. Nevertheless, one of the greatest challenges of the country comes in the form of income inequality and societal differences.

Economic Prosperity

Luxembourg has a very high economic potential, with a strong financial services industry, high-quality steel and a strategic position in geography. Its financial sector acts as the backbone of its economy. It attracts world corporations, investment funds and financial institutions who are looking for stability and fine regulatory frameworks.

Financial services are one industry that heavily contributes to Luxembourg’s gross domestic product (GDP). Luxembourg for Finance reports that “the financial sector accounts for approximately 26% of the GDP of the country, making it one of the greatest contributors to the economy.”

Although not quite as prosperous as in its heyday, Luxembourg’s steel industry remains another important sector of the country’s economy. Its location in the center of Europe makes it easy to trade and carry out commerce, making it a good place for international businesses to have their headquarters or regional offices.

Income Inequality in Luxembourg

Despite its prospering economy, Luxembourg is faced with sharp income inequality, a challenge pervading many aspects of society. According to a report by Sustainable Development Goal (SDG) Watch Europe, the top 20% of earners in Luxembourg take home about five times what the bottom 20% earn.

Differences between the well-off and the underprivileged are reflected in the accessibility of basic services: education, health and housing. While the country is generally characterized by a high living standard, spots of poverty and social exclusion do remain, particularly among certain groups.

Government Response

The government of Luxembourg has implemented social welfare policies that try to alleviate poverty and enhance social mobility. At the very core of these lies a comprehensive social safety net. They include salient welfare programs in the form of unemployment allowances, housing subsidies and even health support schemes. These range from better education and training opportunities to job prospects that economically empower marginalized communities.

Conclusion

Of course, Luxembourg’s impressive economic success is praiseworthy. The government continues with new social welfare policies and programs intended to level the playing field in society.  They aim to foster mobility and bring the nation closer to achieving its vision of an equitable society.

– Honorine Lanka Perera

Honorine is based in Highland, NY, USA and focuses on Business and Good News for The Borgen Project.

Photo: Unsplash

June 16, 2024
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Hemant Gupta https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Hemant Gupta2024-06-16 01:30:392024-06-15 08:50:26Balancing Prosperity and Income Inequality in Luxembourg
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