While the economic and social consequences of poverty are well-documented, policymakers often overlook the psychological impacts of poverty. It is vital to understand this, as those who experience poverty undergo changes in how they feel, think and act. Poverty acts as a self-reinforcing mechanism by increasing mental health problems, altering behaviors and worsening the cognitive functioning of those experiencing it. This makes it harder for individuals to escape poverty, perpetuating its cyclical and seemingly fatalistic nature.
Poverty, Mental Health and Substance Abuse
Poverty significantly impacts mental health, and should not be underestimated. Psychiatric conditions such as depression, anxiety, PTSD, mood disorders and schizophrenia are much more prevalent in areas with high unemployment rates and poverty, with the most drastic effect of poverty being increased rates of suicide.
There is also a strong association between poverty, social exclusion and problematic alcohol use. Individuals who are unemployed and living in poor or insecure housing have higher rates of substance abuse compared to those who are employed, educated and living securely. Substance abuse problems can consume someone suffering from poverty, entrenching them in lifestyles that often result in incarceration, health shock and homelessness.
The consequences of poverty also transcend nationality and ethnicity. Across 43 countries, low incomes uniformly predicted negative psychological states and behavior. These include apathy, decreased levels of trust in communities and governments, antisocial attitudes and mental disparity.
Economic Thinking
Poverty burdens the mind and induces high levels of stress. Stress can impact mental bandwidth, which refers to how much cognitive capacity and executive control one has available. Cognitive capacity allows for complex problem-solving, retaining information and logical reasoning, while executive control determines the ability to focus, shift attention, retain things in memory, multitask and self-monitor. Poverty reduces cognitive capacity and weakens executive control, specifically in abstract thinking, due to the mental burden of financial worries, which hinders problem-solving abilities.
Furthermore, individuals in poverty tend to rely more on automatic thinking versus deliberative thinking. This is less cognitively demanding but also makes individuals less likely to consider all possible outcomes due to restricted mental bandwidth. This means most people living in poverty are only able to deal with one problem at a time, sacrificing and prioritizing only what is immediate and necessary. This is known as the tunneling effect. Tunneling is a state of mind where one can only focus single-mindedly on managing the scarcity at hand, blocking out other sections of life. Tunneling also impacts time-discounting. Impoverished individuals are more likely to lose track of long-term goals or rewards, only paying attention to the most immediate reward. Middle-income and wealthy individuals are more likely to consider future rewards and plan accordingly to obtain those rewards.
Further effects include alteration of behaviorally revealed preferences, including a decreased willingness to take present risks and accept new technologies, policies and assistance that could lead to future benefits. Reluctance to accept new technologies contributes to a paradox where impoverished individuals may avoid the very resources that can aid them.
Cognitive Development
Growing up in poverty can severely undermine cognitive development. At around 3 years old, children in low-income households begin to exhibit cognitive and non-cognitive skill differences from their higher-income peers.
Poverty-induced stress can also lead to impaired cognitive functions, including negative effects on the hippocampal memory system. The consequences of increased cortisol levels due to poverty show up in diseases such as Cushing’s and Alzheimer’s. As the hippocampus is responsible for emotions, motivation and memory, persistent stress impairs decision-making abilities. It perpetuates behavioral patterns in people living in poverty. This creates generalized behavioral patterns: increased cortisol impairs hippocampal function, forcing people into mental tunnels and changing how they make and view decisions.
Stress also reduces people’s executive control over themselves. This can lead them to become more impulsive. Stress’s chemical effects on the brain, most notably a rise in cortisol, dictate that often the bad decisions made by those who are poor are not due to low levels of intelligence but a result of poverty itself.
Breaking the Cycle
Neither cognitive constraints created by poverty nor poverty itself must be final or condemning. Modern behavioral and social sciences can lead to the creation of new cost-effective interventions, especially through targeting economic behavior.
Targeting Economic Behavior
Understanding behavior and identifying effective interventions is a complex process. Interventions must come after careful diagnosis of what the defined behavioral default is. Examples of nudging interventions include social influence, coinventing products that are easy to use, feedback or reminders, micro-incentives and physical environment cues. Reminders have proven to be a simple and effective solution when employed in the correct circumstances. In Kenya, patients receiving HIV treatments have struggled with taking their medications when needed. After health workers began sending routine text messages reminding them when to take their HIV medication, the percentage of patients taking their drugs increased by 13%.
Breaking the cycle of poverty may require policies that go further than behavioral nudging, especially for those in extreme poverty. In cases of extreme poverty, multifaceted poverty reduction programs are an impactful way to create pro-poor growth.
Multifaceted Poverty Reduction Programs
Multifaceted poverty reduction programs combine several different interventions to create an integrated approach that leads to positive outcomes. Multidimensional issues such as poverty require multidimensional solutions. Multifaceted programs include cash transfers, skills training and food subsidies. These initiatives also provide access to savings, services for physical and mental health and scheduled check-ins with program managers to measure progress. With regards to helping the ultra-poor, these programs are effective. Frequently, these programs prove to be successful in improving food security, physical and mental health, financial inclusion and time use. Also, there are upsides such as increased income and revenues, productive and household assets, political involvement and women’s empowerment.
Looking Ahead
In recognizing the psychological impacts of poverty, there is hope for breaking the cycle and improving the well-being of those affected. By understanding the cognitive and behavioral constraints imposed by poverty, targeted interventions can be developed to address specific challenges. Nudging interventions and multifaceted poverty reduction programs offer promising avenues for supporting individuals and communities, from providing reminders for medication adherence to comprehensive initiatives that address various dimensions of poverty. By combining these approaches, policymakers and practitioners can make meaningful strides in uplifting those experiencing poverty and promoting long-term positive change.
– Andrew Giganti
Photo: Unsplash
Disasters Emergency Committee’s Relief Efforts to Help Ukraine
Consequences of the War
The war in Ukraine has led to the destruction of infrastructure, the dissolution of essential services, the separation of families and severe injuries and deaths. Because of these incitements, more than 7 million people have fled Ukraine, according to the British Red Cross Society.
According to the Office of the United Nations High Commissioner for Human Rights, as of March 12, 2023, Ukraine has noted a total of 21,965 casualties, with 8,231 people killed and 13,734 people injured. Additionally, the country will require $411 billion to rebuild the country, according to the World Bank in March 2023.
A Collaborative Effort
The DEC Ukraine Humanitarian Appeal has raised more than £400 million worth of funding to assist in Ukraine, Poland Moldova, Romania and Hungary, including £25 million matched by the British government, “making it the biggest charity donor to the Ukraine humanitarian response in the world,” the DEC website says.
In the initial three months of the response, the majority of the finances went toward helping people within Ukraine itself. In the first six months of the response, almost 50% of the funding went toward cash assistance for more than 338,000 people to meet their basic needs of survival.
Additionally, 17% of funding went toward securing warm meals and food packages for people. Furthermore, 15% went toward health services for 71,000 people and mental health care for 37,000 people. The DEC’s work also includes safeguarding Ukrainians residing in bomb shelters and providing medical and mental health services.
The DEC’s local partners are helping across the borders of these countries, like Action Against Hunger, the British Red Cross and World Vision. The organization released a short video entitled “Never Alone,” created by a majority Ukrainian team and directed via remote camera. The video highlights the devastation and ruin brought about by Russia’s attack on Ukraine. “We cast Ukrainian people still living there – so that we could capture their resilience, their strength and their Ukrainian stoicism for all to see,” film director Rick Dodds said. The individuals in the short film are actors but they represent true stories of the victims of war assisted by DEC charities.
Helping Ukraine
According to Ukraine’s economy ministry projections, the country’s GDP will only grow by about 1% in 2023, illustrating the significant economic consequences of the war. The most tangible way to support the DEC in its relief efforts to help Ukraine is to donate. Individuals in the U.K. can do so physically by visiting any of the 11,500 Post Office branches in the U.K. There is also the option of donation via phone call or via the online website. Through the Disasters Emergency Committee and its relief efforts in Ukraine, Ukrainians in Ukraine and in neighboring countries can look to the possibility of a brighter future.
– Robin Kalellis
Photo: Flickr
A Closer Look at Foreign Aid and Development
A recent survey shows that 66% of Britons support foreign aid spending, but there is significant division regarding the specifics of aid, DEVEX notes. The British government is currently facing criticism as reports emerged that the government, in 2022, diverted £3.7 billion ($4.6 billion) from the foreign aid budget to domestic refugee programs. The act negatively impacted nearly all international humanitarian programs, according to Bond, a U.K. network of development organizations. Nonetheless, a British government representative highlights that Britain remains one of the largest foreign aid donors globally. A closer look at foreign aid and development illustrates the importance of aid to the world’s poorest.
Foreign Aid
Foreign aid remains elusive for many British citizens due to its complex network of donors and recipients. In essence, foreign aid involves the “transfer of capital, goods or services from one country or international organization to another for the benefit of the recipient country or population.” Its goal is to provide vital resources such as access to clean water, education, infrastructure and security.
Development
One should not mistake foreign aid as a mere wealth transfer or redistribution. Rather, it is an investment. A donor country in partnership with various private actors, provides financial resources or commodities: capital, credit, military and training, in return for preferential access to primary goods or capital returns on investments made in infrastructure or industry. Aid can be strategically deployed to ensure regional security, as investments in Libya, Somalia and Afghanistan exemplify.
As directed by the Marshall Plan of 1947, the U.S. sent complex aid packages made up of loans and goods to Europe to forestall the spread of communism and create a vast and dependable market for U.S. goods. This meant returns for both private and state investors and the recipient country.
Modern investments also have played a role in stabilizing regions. China, for example, has built 100 seaports in Africa to facilitate free trade and preferential access to goods. China built the Lekki Deep Sea Port in Nigeria. Costing the Chinese government $1 billion, it is one of the largest ports in West Africa.
The Chinese Ambassador to Nigeria Cui Jianchun says the project will create at least 200,000 jobs and will bring prosperity and security to the region. Of course, China, or the China Harbor Engineering Company Ltd (CHEC) specifically, owns 75% of the port and receives a fee on all goods entering and exiting. China has also provided humanitarian aid for disaster relief and refugee support globally.
Humanitarian Aid
Through foreign aid, countries and organizations are able to establish humanitarian assistance projects to help the most vulnerable people meet their basic needs. However, foreign aid primarily consists of comprehensive packages that include both development and humanitarian aid. Official Development Assistance (ODA) is a crucial aspect of this aid, designed to promote development and combat poverty. U.K.-funded ODA programs have achieved significant humanitarian milestones.
U.K.-funded ODA programs have, for example:
Looking Ahead
During the U.K.-Africa Investment Summit in January 2020, the U.K. committed to investing an additional £1.6 billion in foreign aid and development projects to create jobs and foster growth. However, the U.K. falls short of the U.N. target of allocating 0.7% of GDP to ODA, currently spending 0.5%. The government suggests that financial constraints have affected meeting this target and it aims to return to it in the future. Global circumstances, such as the current focus on Ukraine, may redirect foreign aid budgets, raising concerns about neglecting other areas in equal need.
The direction of Great Britain’s foreign aid and development strategy appears uncertain amidst the influence of COVID-19 and Brexit. These events have compelled the U.K. government to reevaluate its global stance, leading to budget reductions and altered spending priorities. However, as economic conditions improve, there is optimism that the U.K. will establish well-defined and impactful foreign aid strategies and objectives.
– James Durbin
Photo: Flickr
Poverty and Culture Loss Among the Indigenous Peoples of Russia
Indigenous Peoples Face Headwinds
In general, living standards for the country’s small nationalities are lower than for ethnic Russians. As they often preserve traditional ways of life and occupy remote, isolated areas, some basic services, such as education, are lacking or of a lesser quality. Furthermore, Indigenous populations suffer from higher unemployment rates and lower incomes, with the former being almost two times higher than among the general population and the latter being two to three times lower. Unfortunately, the country’s Indigenous peoples also lack access to safe drinking water, food, medical care and other vital necessities, leading to higher disease and infection rates and shorter lifespans. For instance, Indigenous men and women in Russia have respective life expectancies of 50 years and 60 years, which are significantly lower than the life expectancies (64 years for men and 70 years for women) of the general Russian population.
While Russian legislation formally guarantees Indigenous populations’ rights to language protection, education and water and land use, Indigenous rights are rarely protected or enforced. Indigenous land is regularly exploited for industrial and other purposes, depriving Indigenous peoples of the land and natural resources that they rely upon for physical, financial and cultural sustenance.
Factors Contributing To Indigenous Poverty and Culture Loss in Russia
Racism has been a driving force behind poverty and culture loss among the Indigenous peoples of Russia. The country’s non-Russian populations often face harsh racial profiling, mistreatment by law enforcement, employment discrimination and hate crimes. The war in Ukraine has exacerbated the situation, with the proportion of Indigenous soldiers mobilized in the war reportedly far outweighing that of ethnic Russians.
In light of growing economic and societal challenges, Indigenous people are increasingly abandoning their languages and cultural heritage in hopes of assimilating with the majority population and increasing their chances of survival. Consequently, many of the country’s Indigenous peoples and languages are going extinct, along with their unique histories, knowledge and lifestyles. As of 2014, 148 Indigenous languages and at least 16 of the 41 legally recognized Indigenous groups in Russia were “considered to be endangered.”
Local Government and Native Councils May Hold the Key to a Better Future
There has, however, been progress toward rectifying the situation in recent decades. In 1996, the Khanty-Mansi Autonomous Okrug established a regional council of Indigenous peoples, and the local legislature designated three of its 21 seats for Indigenous representatives. Additionally, the Russian Association of Indigenous Peoples of the North (RAIPON), an umbrella organization founded in 1990, is working “to protect human rights and defend the interests of the indigenous small-numbered peoples of the North, Siberia and Far East of the Russian Federation.” Representing 40 Indigenous peoples, RAIPON is a member of the Arctic Council and collaborates with several U.N. partners to organize, advocate and raise funding for projects supporting Indigenous interests in Russia. Furthermore, the Arctic Council utilizes a “language revitalization” initiative aimed at studying, recording, digitizing and sustaining Indigenous languages that are at risk of extinction.
Looking Ahead
Despite the threats of poverty and cultural loss, Indigenous civil society groups and international efforts are making a difference in the struggle to maintain Indigenous populations in Russia. Nonetheless, future success in combating poverty and culture loss among the Indigenous peoples of Russia looks to hinge upon increased funding and support for Indigenous education, language, land and rights protections and cultural preservation work. Such levels of support could help ensure that the Indigenous peoples of Russia, and their values and heritage, continue to thrive.
– Paul Phelan
Photo: Flickr
More Services Needed to Address Mental Health in Zambia
Considering that 60% of Zambians are impoverished, obtaining adequate mental health care has often been challenging. For this reason, individuals diagnosed with mental health disorders are more likely to miss out on education and employment.
The current studies on mental health in Zambia have mainly focused on the following barriers that further prevent individuals from accessing care: policy, lack of professionals and funding. Moreover, the stigmatization of mental health at the community level has also prohibited many from seeking the necessary resources and increased the likelihood of violence and threats.
Mental Health Gaps in Zambia
In Zambia, mental health care funding accounts for less than 1% of the overall budget each year. Because of inadequate funding, it becomes more difficult to treat patients and provide proper psychiatric therapies. Additionally, budget constraints have made it hard to train skilled workers and provide more mental health care institutions within the country.
Only one hospital in the entire country is designated to treat individuals struggling with mental disorders and it is located in the capital city of Lusaka. Unfortunately, there are only three local psychiatrists for a population of 12 million. Another reason for having limited mental health care professionals is because of brain drain, where individuals leave their country of origin for better salaries and opportunities in other countries.
Until recently, the Zambian government relied on The 1951 Mental Disorders Act, which is seemingly outdated and dehumanizes patients with mental problems by referring to them under derogatory names. On the other hand, due to stigmatization, mental health treatment is not offered at primary health care institutions, but rather at classified psychiatric hospitals. As of 2022, a “National Health Strategic Plan” has been in the works to strengthen and integrate affordable health practices in primary health care, advance facility development and promote better resources and training for mental health care professionals.
Advocating for Better Mental Health for Zambians
Along with the legislation, a few NGOs have been working towards improving mental health services through different practices and helping individuals cope with mental struggles without stigma. The Zambia Therapeutic Art (ZTA) organization has worked closely towards developing the best psychosocial approaches that are aligned with the legislation of the Ministry of Health in Zambia. The ZTA offers a short-term course for new professionals working in mental health enabling them to work with a variety of patients.
Initially, the ZTA solely focuses on therapeutic art, where vulnerable patients can use artistic expression as a healthy outlet. This way of mental practice allows for no judgment and helps to communicate and understand one’s emotions better. So far, over 500 mental health professionals have gained practical skills through this course with feedback on how this form of therapy has impacted their patients in different ways.
During COVID-19, the form of teletherapy was increasingly liked because people were able to speak to a counselor on the phone without confrontation. More than 1,000 women were being helped through teletherapy during the pandemic, creating a safe space for vulnerability. With more licensed professionals in the field, advanced methods of treatment can help allocate individuals who are suffering from mental issues in Zambia.
Future Outlooks
While there is still a stigmatization of mental health in Zambia, small steps have been taken to minimize this barrier and help individuals that need mental health care. Organizations like the ZTA have dedicated their work to educating and developing creative practices to limit these gaps in mental health access. With greater support from the government to recreate legislation and for the country to educate more mental health providers, Zambians can foresee a better future for their well-being and state of mind.
– Alessandra Amati
Photo: Flickr
The Links Between Poverty and Air Quality in Pakistan
Causes of Poor Air Quality in Pakistan
Many different factors contribute to a deadly mix leading to poor air quality in Pakistan. The two most significant contributors to poor air quality are vehicle emissions and industrial emissions.
In 2019, “43% of the total ambient air pollution” in Pakistan stemmed from vehicle emissions. According to Pakistan’s Environmental Protection Agency (EPA) Director General Farzana Altaf Shah, during times of break such as Ramazan and summer break, air pollution is not an issue. However, when schools reopen, pollution levels skyrocket once again.
This is the result of the poor maintenance of the vehicular fleets of these institutions. Shah stated that many of the buses use “non-compliant diesel fuel,” which contains high amounts of sulfur dioxide, a chemical that negatively impacts health. She also expressed to the media her frustration with government agencies like the Capital Development Authority (CDA) and the Islamabad Metropolitan Corporation (IMC) who also contribute to air pollution with the use of pollution-emitting fleets.
The industrial sector also significantly contributes to poor air quality in Pakistan. Pakistani industries produce many different products, including leather, fertilizer, petrochemicals, paper, cement and automobiles. All of these produce hazardous gases and dangerous smoke. Brick kilns use tires (a “dirty” source of fuel) as fuel.
Health Impact of Poor Air Quality
Air quality in Pakistan comes with many risks to the health of the people. According to the University of Chicago‘s Energy Policy Institute, Lahore residents lose about five years of life as a result of the toxic air they breathe regularly.
In every country, poorer people are most affected by air pollution as they are “priced out” of the better neighborhoods with plush greenery, fewer roads and overall better air quality. As of 2023, the World Bank expects poverty in Pakistan to reach 37.2% based on the poverty line of $3.65 per person per day.
Poor air quality takes a significant toll on the lungs and creates various breathing issues. In Pakistan, common lung conditions are asthma, chronic obstructive pulmonary disease and lung cancer. A survey conducted in 2013 found that 6.9 million Pakistanis live with symptoms of chronic obstructive pulmonary disease. In Pakistan, one in 10 under-5 child deaths stems from air pollution. A study in 2019 by the Global Alliance on Health and Pollution estimated that around 128,000 Pakistanis die every year from illnesses related to air pollution.
Pakistan’s Plan for Tackling Air Pollution
The Government of Punjab is the provincial government of the Pakistani province of Punjab, based in Lahore, the provincial capital. In May 2018, the World Bank granted Pakistan a $200 million soft loan over five years for the Punjab Green Development Program dedicated to green investments that would ultimately improve air quality.
“This project will strengthen the province’s environmental management [by] empowering its environmental protection agencies to provide better services. It will help modernize laws and regulations and promote investments in cleaner technologies to reduce air and water pollution,” the World Bank website says.
Looking Ahead
Efforts are underway to address the severe air pollution challenges in Lahore, Pakistan. For instance, the Punjab Green Development Program, supported by a $200 million soft loan from the World Bank, aims to empower environmental protection agencies and promote investments in cleaner technologies. By modernizing laws and regulations and implementing greener practices, Pakistan is taking important steps towards a healthier and more sustainable future for its citizens.
– David Keenan
Photo: Flickr
Fragility and Rule of Law in Yemen
Yemen’s ongoing civil war has brought about significant changes to its traditional justice systems, both formal and informal. The conflict has led to the fragmentation of the justice system along the lines of different authorities in control of various areas of the country, resulting in a complex network of parallel legal structures. It has also exacerbated pre-existing challenges to the rule of law and the delivery of justice, with citizens bearing the brunt of the problem. The conflict has contributed to an increase in disputes, further complicating the already complex legal landscape and impacting the fragility and rule of law in Yemen.
According to the United Nations (U.N.), “Poverty often stems from disempowerment, exclusion and discrimination. The rule of law fosters development through strengthening the voices of individuals and communities, by providing access to justice, ensuring due process and establishing remedies for the violation of rights.”
History of Yemen
Yemen’s history has been shaped by the interplay between religion and politics since Islam’s adoption in the 7th century AD. The country was ruled by successive dynasties of Imams from the Zaydi sect until parts of North Yemen came under Ottoman rule in the 19th century. The Yemen Arab Republic (YAR) was established after a revolution led by Colonel Abdallah al-Sallal in 1962, leading to a civil war between traditional royalists and new republicans. The Marxist National Liberation Front took control of South Yemen in 1967, leading to conflict with the YAR until the two unified in 1990, forming the Republic of Yemen. Yemen’s complicated history has resulted in ongoing conflict and instability.
Rule of Law
Tribal affiliation is a significant aspect of social identity in Yemen, with three major tribal confederations historically dominating the north and east regions. Non-tribal areas are prevalent in the west and south. About one-quarter to one-half of Yemenis identify with a tribe. Tribalism has a substantial influence on politics and social organization, and customary laws significantly impact legislation implementation and dispute resolution.
Yemen merged two former states in 1990 to form a multiparty representative democracy. The conflict between Northern and Southern political leaders followed the first legislative elections, leading to the defeat of Southern forces in 1994. Opposition parties, media and non-governmental organizations faced curtailment of freedom. In 2011, mass uprisings, along with external pressure, forced President Saleh to step down and a new president came into power in 2012.
Weak public administration has long plagued Yemen, with a complex history that has resulted in state fragility, ineffective institutions and corruption of the rule of law in Yemen. The country has struggled to develop effective civil service reforms, which often have links to the broader political and administrative context.
Unfortunately, implementing public sector management reforms in developing countries is notoriously difficult. The country has struggled to establish a stable government, with civil war, political turmoil and foreign interventions hindering progress. As a result, Yemen’s public sector is severely lacking, with weak institutional capacity, corruption and political interference.
Public institutions, including the rule of law-related institutions, are dysfunctional. The country’s administration is unable to effectively deliver basic services to the population, including health care, education and infrastructure, a situation that most harshly affects the country’s poorest. According to the World Bank, about 78% of Yemeni people live in poverty due to several compounding issues.
Impact on the People
The conflict in Yemen, between the Saudi-led coalition and Iranian-backed Houthi rebels, is causing harm to civilians, restricting access to aid and leading to displacement. The Houthi rebels have targeted Marib and launched missile strikes in Saudi Arabia, worsening the situation. The U.S. ended support for offensive operations but continues to send weapons to the coalition. The economic crisis has led to food and medicine shortages, a lack of clean water and protests in southern Yemen. The security forces’ response has led to further unrest. Urgent international action is necessary to address the humanitarian crisis and promote peace.
The situation in Yemen stands as one of the worst humanitarian crises globally, with 24.1 million people facing the risks of hunger and disease and 14 million people requiring acute humanitarian aid due to the ongoing conflict since 2015. The economy has suffered, causing widespread poverty and severe food insecurity. More than 40% of households struggle to secure their minimum food needs due to the historic depreciation of the Yemeni riyal, infrastructure disruption and financial service disruptions.
Taking Action
In April 2022, President Hadi transferred authority to a “Presidential Leadership Council,” prompting an economic aid package of $3 billion from Saudi Arabia and $300 million in humanitarian aid from the UAE. However, long-term structural reforms are still necessary.
Promoting Inclusive Access to Justice in Yemen (PIAJ) is a United Nations Development Programme (UNDP) initiative that aims to strengthen the rule of law in Yemen and ensure access to justice, among other endeavors. The project will focus on the areas of Sana’a and Aden Governorates, the initial pilot program locations and then Hodeidah (and possibly Hadramout). It will also prioritize the most marginalized and impoverished groups. The project began in 2021 and will end in 2024.
With the support of organizations like the U.N., there is potential for Yemen to strengthen the rule of law, enhance access to justice and progress towards greater stability.
– Noura Matalqa
Photo: Flickr
The Psychology of Poverty
Poverty, Mental Health and Substance Abuse
Poverty significantly impacts mental health, and should not be underestimated. Psychiatric conditions such as depression, anxiety, PTSD, mood disorders and schizophrenia are much more prevalent in areas with high unemployment rates and poverty, with the most drastic effect of poverty being increased rates of suicide.
There is also a strong association between poverty, social exclusion and problematic alcohol use. Individuals who are unemployed and living in poor or insecure housing have higher rates of substance abuse compared to those who are employed, educated and living securely. Substance abuse problems can consume someone suffering from poverty, entrenching them in lifestyles that often result in incarceration, health shock and homelessness.
The consequences of poverty also transcend nationality and ethnicity. Across 43 countries, low incomes uniformly predicted negative psychological states and behavior. These include apathy, decreased levels of trust in communities and governments, antisocial attitudes and mental disparity.
Economic Thinking
Poverty burdens the mind and induces high levels of stress. Stress can impact mental bandwidth, which refers to how much cognitive capacity and executive control one has available. Cognitive capacity allows for complex problem-solving, retaining information and logical reasoning, while executive control determines the ability to focus, shift attention, retain things in memory, multitask and self-monitor. Poverty reduces cognitive capacity and weakens executive control, specifically in abstract thinking, due to the mental burden of financial worries, which hinders problem-solving abilities.
Furthermore, individuals in poverty tend to rely more on automatic thinking versus deliberative thinking. This is less cognitively demanding but also makes individuals less likely to consider all possible outcomes due to restricted mental bandwidth. This means most people living in poverty are only able to deal with one problem at a time, sacrificing and prioritizing only what is immediate and necessary. This is known as the tunneling effect. Tunneling is a state of mind where one can only focus single-mindedly on managing the scarcity at hand, blocking out other sections of life. Tunneling also impacts time-discounting. Impoverished individuals are more likely to lose track of long-term goals or rewards, only paying attention to the most immediate reward. Middle-income and wealthy individuals are more likely to consider future rewards and plan accordingly to obtain those rewards.
Further effects include alteration of behaviorally revealed preferences, including a decreased willingness to take present risks and accept new technologies, policies and assistance that could lead to future benefits. Reluctance to accept new technologies contributes to a paradox where impoverished individuals may avoid the very resources that can aid them.
Cognitive Development
Growing up in poverty can severely undermine cognitive development. At around 3 years old, children in low-income households begin to exhibit cognitive and non-cognitive skill differences from their higher-income peers.
Poverty-induced stress can also lead to impaired cognitive functions, including negative effects on the hippocampal memory system. The consequences of increased cortisol levels due to poverty show up in diseases such as Cushing’s and Alzheimer’s. As the hippocampus is responsible for emotions, motivation and memory, persistent stress impairs decision-making abilities. It perpetuates behavioral patterns in people living in poverty. This creates generalized behavioral patterns: increased cortisol impairs hippocampal function, forcing people into mental tunnels and changing how they make and view decisions.
Stress also reduces people’s executive control over themselves. This can lead them to become more impulsive. Stress’s chemical effects on the brain, most notably a rise in cortisol, dictate that often the bad decisions made by those who are poor are not due to low levels of intelligence but a result of poverty itself.
Breaking the Cycle
Neither cognitive constraints created by poverty nor poverty itself must be final or condemning. Modern behavioral and social sciences can lead to the creation of new cost-effective interventions, especially through targeting economic behavior.
Targeting Economic Behavior
Understanding behavior and identifying effective interventions is a complex process. Interventions must come after careful diagnosis of what the defined behavioral default is. Examples of nudging interventions include social influence, coinventing products that are easy to use, feedback or reminders, micro-incentives and physical environment cues. Reminders have proven to be a simple and effective solution when employed in the correct circumstances. In Kenya, patients receiving HIV treatments have struggled with taking their medications when needed. After health workers began sending routine text messages reminding them when to take their HIV medication, the percentage of patients taking their drugs increased by 13%.
Breaking the cycle of poverty may require policies that go further than behavioral nudging, especially for those in extreme poverty. In cases of extreme poverty, multifaceted poverty reduction programs are an impactful way to create pro-poor growth.
Multifaceted Poverty Reduction Programs
Multifaceted poverty reduction programs combine several different interventions to create an integrated approach that leads to positive outcomes. Multidimensional issues such as poverty require multidimensional solutions. Multifaceted programs include cash transfers, skills training and food subsidies. These initiatives also provide access to savings, services for physical and mental health and scheduled check-ins with program managers to measure progress. With regards to helping the ultra-poor, these programs are effective. Frequently, these programs prove to be successful in improving food security, physical and mental health, financial inclusion and time use. Also, there are upsides such as increased income and revenues, productive and household assets, political involvement and women’s empowerment.
Looking Ahead
In recognizing the psychological impacts of poverty, there is hope for breaking the cycle and improving the well-being of those affected. By understanding the cognitive and behavioral constraints imposed by poverty, targeted interventions can be developed to address specific challenges. Nudging interventions and multifaceted poverty reduction programs offer promising avenues for supporting individuals and communities, from providing reminders for medication adherence to comprehensive initiatives that address various dimensions of poverty. By combining these approaches, policymakers and practitioners can make meaningful strides in uplifting those experiencing poverty and promoting long-term positive change.
– Andrew Giganti
Photo: Unsplash
How Renewable Energy Can Help Revitalize Bosnia and Herzegovina
A Step Toward Greener Energy
Currently, Bosnia and Herzegovina is the only country in the Western Balkans that is a net exporter of power. Electricity, which accounts for about 20% of the national GDP, is its most profitable export. In 2021, hydropower accounted for 37% of the electricity produced in the country, which has also begun to introduce solar and wind power plants in recent years.
According to the International Trade Administration, Bosnia and Herzegovina has the potential to further grow and benefit from renewable energy production. Given the country’s extensive river networks, sunny summers and windy mountain ranges, government officials are not ignoring that potential. In March 2022, BiH’s government announced plans to allocate 3.6 billion marka (about $2 billion) to enhance the country’s output of clean, renewable energy in the upcoming five years.
Significantly, such funding could have a substantial economic impact while helping to improve the well-being of the country’s most vulnerable. For instance, a 2015 UNICEF report highlighted that 73.8% of children in BiH between 5 and 15 years of age are deprived of material resources in at least one way, and 71.8% of children between 0 and 4 years of age are nutrition-deprived. A 2017 Sustainable Development Goals Fund Case Study showed that investment in increasing renewable energy production could help create jobs, lower household energy costs, improve health and sanitation and provide new opportunities to break the cycle of poverty and deprivation.
Wind Power Potential Blowing Investors Away
There are already three operational wind farms in BiH. As of 2019, one farm in Podveležje was producing 126 gigawatt hours (GWh) of electrical power yearly — enough to power about 40,000 homes. This sector expects to see further growth. For example, the German company wpd GmbH has invested $1.5 billion in a two-part project to build four wind farms in the towns of Glamoc, Bosansko Grahovo and Livno.
A Brighter Future in Solar Power
Additionally, the southern regions of BiH benefit from strong Mediterranean sunshine, which some overseas investors are eager to help harness. The Norwegian renewable energy company Greenstat, for one, is beginning construction of the first large-scale solar farm in the town of Grude. The plant will have the capacity to capture some 65 GWh of power per year.
At the local level, the government is also encouraging citizens to install solar panels through a state-funded initiative. The scheme is expected to alleviate some of the consequences of the current energy crisis in Europe, thus leaving people with more income and resources to enrich their quality of life.
Harnessing Hydropower
Although hydropower already accounts for a substantial portion of Bosnia and Herzegovina’s renewable energy, the country’s rivers hold much untapped potential. Recent data indicate that BiH is only deriving about 41% of its domestic energy from hydropower. This indicates that this lucrative sector has room to expand while paving the way toward a greener and brighter future within the country itself.
Using Renewable Energy in Bosnia and Herzegovina for Good
Although Bosnia and Herzegovina’s developing renewable energy industry has met with some controversy, there is a clear route to increasing the country’s renewable energy production, instituting appropriate regulations and helping to alleviate poverty. Channeling and storing BiH’s abundant wind, solar and hydro-power resources would go a long way in heightening its energy export potential while ensuring positive impacts on both poverty reduction and the environment.
– Annabel Kartal-Allen
Photo: Pixabay
Amnesty International Calls For Universal Social Protection
In addition to its efforts to spread awareness of human rights violations happening globally, on May 10, Amnesty International issued a briefing addressing overlapping crises that have left many facing poverty and hunger titled “Rising Prices, Growing Protests: The Case for Universal Social Protection.” In the briefing, the charity calls for universal social protection, or an “integrated set of policies and programs that provide equitable access to all people and protect them throughout their lives against poverty and risks to their livelihoods and well-being.”
Overview of the Briefing
The briefing begins by naming a few of the overlapping crises resulting in global poverty, starting with economic shock. In addition to around 60% of the world’s poorest countries being in debt distress, it cites that almost all middle-income and lower-income countries have experienced a high rate of inflation in the past year. Some notable examples include Zimbabwe at 321%, Lebanon at 203% and Venezuela at 158%. This means prices of basic necessities like food and housing have quadrupled, tripled and doubled in these countries. Amnesty International reports that people live in hunger due to three main reasons: economic shocks, armed conflict and the climate crisis.
The climate crisis impacts conditions that make food production possible by heightening severe weather like storms, extreme heat and wildfires. The loss of crops and livestock has been particularly devastating for farmers around the world living in poverty. The United Nations Food and Agriculture Association (FAO) found that drought was the single greatest contributor to agricultural production loss, followed by floods, storms, pests and diseases and wildfires. The climate crisis threatens food security. For example, when extreme flooding occurred in Pakistan in October 2022, the FAO reported that out of the 33 million people affected, 1.9 million needed food and agricultural assistance. Also, 510,000 people were “one step away from catastrophic levels of food insecurity.” Now more than ever, universal social protection is necessary to aid food security when relieving disasters.
Necessary Steps
Amnesty International’s brief calling for universal social protection recommends global creditors reschedule or cancel their debts so countries can have an opportunity to fund universal social protection. The cost of offering basic universal social protection would be around $440.8 billion a year, which is less than the $500 billion that lower-income and middle-income countries lose to foreign investors around the world.
Amnesty International stresses the importance of investing in universal social protection as well as making it shock-responsive, meaning its coverage would increase in large-scale crises. It also recommends other countries create a global fund for low-income or middle-income countries that cannot support universal social protection at the start, especially when they need to meet urgent humanitarian needs and suffer from food insecurity. This way, a universal basic income, guaranteed minimum income and a “social protection floor” – health care, income security, etc.– can be achieved globally.
Photo: Flickr
How Artificial Intelligence Impacts the Workforce
As immense as a tsunami, the wave of artificial intelligence has already started creeping toward the shores of innovation, promising to change the way society lives, works and interacts with each other. AI is no longer a futuristic concept; it is a reality that is already transforming industries and societies around the world. Despite the potential benefits, AI also poses a considerable threat to the workforce. With estimates suggesting that nearly 15% of jobs worldwide could be vulnerable to displacement due to automation, the implications of AI for the future of work are profound and far-reaching.
The Rise of AI
All over the globe, artificial intelligence and AI have begun to permeate the everyday life of people. This technology has already transformed the way people engage with the world around them, from personal gadgets like smartphones and virtual assistants to large-scale systems like transportation networks and financial institutions. And as this demand grows, the technology itself also continues to evolve. One study by NVIDIA found that over the past 18 months, the performance gains of their A100 GPUs have increased by a factor of almost five. This unprecedented speed and scale provide a glimpse into the potential applications of these technologies in the future.
Impact on Jobs
As AI technology advance and becomes more prevalent, it brings with it a slew of potential issues, the most common of which is job displacement. According to a Zippia report, countries such as Greece and Slovakia in Europe face a risk of losing more than 50% of their jobs due to computerization. Occupations in data entry, manufacturing, machining, customer service, labor and inventory management are particularly at risk, as these are areas where AI and automation are most likely to have a significant impact.
Low-income Families
These changes are likely to have the most consequential influence on low-income households and regions. Many low-income families rely on low-skill jobs as their only source of income. Unfortunately, the AI industry could displace 50% of these jobs over the next 5 years. As machines become more prevalent in the workplace, the demand for low-skilled workers may continue to decrease, leading to a potential reduction in wages and benefits.
Possible Intervention Efforts
Fortunately, there are a number of steps that can help protect or transition the workforce in the age of AI. Some of these steps could involve investing in skilled-training programs and implementing protection periods for workers who face exposure to job loss due to AI. For instance, the fund-based “SkillsFuture” program that Singapore introduced in 2015 has already achieved measurable success.
The program’s more than 660,000 beneficiaries, including those who received the $500 credit and benefited from the training and professional assistance programs were able to easily transition into and out of the workforce as new technologies underwent development. In Canada, a similar program, “Future Skills Centre,” has also emerged. Through this program, more than 36,000 participants from more than 20 different economic sectors were able to receive practical professional training to help them get ready for and adjust to the changing workplace.
Looking Ahead
In the face of AI’s potential impact on jobs, there are promising interventions that can help mitigate its effects. Investments in skilled-training programs and the implementation of protection periods for at-risk workers can provide crucial support during the transition. Successful initiatives like Singapore’s “SkillsFuture” and Canada’s “Future Skills Centre” demonstrate the effectiveness of such measures in equipping individuals with the necessary skills to navigate the changing landscape of work. With proactive efforts and inclusive policies, societies can embrace the opportunities presented by AI while safeguarding the well-being of their workforce.
– Sanjith Sambath
Photo: Flickr