Compared to the rest of the world, tobacco use in Africa is relatively low. A 2019 report from the World Health Organization (WHO) found that in 2000, the African region had a tobacco use prevalence rate of 18.5%, the lowest of any of the WHO regions.
However, as economic development in Africa continues to rise, with countries like Ethiopia and Rwanda seeing unprecedented expansion, tobacco consumption has also increased. The WHO now predicts that tobacco-related deaths are likely to double in the coming years within low and middle-income countries, many of which are in Africa.
Rising tobacco use is likely to have a detrimental effect on developing countries. The infrastructure to deal with the associated health issues is simply not in place. Facing this problem early will be crucial in giving African nations the best chance of reducing poverty and improving standards of living, along with overall health.
Targeting Emerging Economies
People commonly associate economic growth with positive changes, such as job opportunities and more money in our pockets. However, as consumers find they have more money to spend, companies are eager to market products to them. This includes the tobacco industry. In 2013, a committee of experts that the Network of African Science Academies convened found that “As the use of tobacco has declined in high-income countries, the tobacco industry has increasingly turned to low- and middle-income countries, particularly in Africa, Asia and Eastern Europe, to recruit new users.”
Tobacco manufacturers have used specific tactics to promote their products in African countries. According to a 2021 report published in the Bulletin of the World Health Organization, companies have encouraged local traders to sell individual cigarettes to attract young and low-income customers. Tobacco companies have also used promotional tactics, such as price reductions, coupons and giveaways, even though these practices are usually against the law.
Unfortunately for some African nations, as the economy has grown, the number of smokers has followed suit. For example, as the annual GDP consistently grew from 2009 to 2014 in the Democratic Republic of the Congo, tobacco use also increased.
The Burden on Health Care
Research has well documented that tobacco use causes health issues, such as cancer, stroke and lung disease. These are known as non-communicable diseases (NCDs) and case numbers are rising in Africa. This poses a problem for healthcare infrastructure. The World Economic Forum reported that most NCDs undergo treatment in large city hospitals, placing an additional burden on rural patients. Furthermore, many hospitals simply do not have the resources to treat so many cases.
Another factor to consider is the prevalence of infectious diseases, such as malaria, HIV and COVID-19. These afflictions have been a persistent burden on healthcare systems described as “fragile, fragmented, under-resourced and limited.” Increasing tobacco consumption will only exacerbate this problem.
The Effect on Poverty
Tobacco companies often cite job creation to justify their presence in developing countries. They go on to suggest that increasing taxes on tobacco products will cause people to lose their jobs.
Some developing countries indeed have tobacco-dependent economies. For example, a 2009 study found that Malawi relies on tobacco exports for 70% of its foreign earnings. However, placing more restrictions on tobacco could actually be beneficial for Malawi. It could “diversify [its] economy” and open it up to foreign aid for funding other industries.
Dr. Kenneth E. Warner made this same argument in his 1999 article, “The Economics of Tobacco: Myths and Realities,” published in Tobacco Control. Essentially, he stated that if a country is no longer dependent on the tobacco industry, this does not mean that it has no other industry to rely on. Resources can go toward developing other industries and consumers can spend their money elsewhere, generating new jobs.
The myth of economic development through tobacco is further debunked when one considers the financial burden of addiction. Studies found that rising tobacco use in Africa will exacerbate poverty. Money spent on tobacco products and the cost of treatment for associated diseases could cripple low-income families by affecting employment, not to mention the debilitating effects that these diseases cause.
Implementing Solutions
Thankfully, many African nations are taking measures to prevent their economies from becoming overly dependent on tobacco. Uganda is one of these nations. In 2015, the Ugandan government passed the National Tobacco Control Act, prohibiting tobacco sales to anyone under the age of 21. It also banned smoking in public buildings, such as schools and hospitals, and banned the advertising of tobacco products.
In recent years, media campaigns launched in Uganda, educating the public on the economic and health risks associated with tobacco use. They have also advocated for harsher taxation on tobacco products, which would generate funding for further tobacco control measures.
Another positive step is that 51 out of 54 countries in Africa have ratified the WHO Framework Convention on Tobacco Control, thereby committing to implementing policies to reduce tobacco consumption.
Tackling rising tobacco use in Africa is instrumental in reducing poverty and moving forward. Funding tobacco control measures is an important step in releasing pressure on African healthcare systems. It is time for the world to leave smoking in the past.
– Abbi Powell
Photo: Unsplash
How UNICEF Addresses Malaria
The World Health Organization (WHO) defines malaria as “a life-threatening disease caused by parasites that are transmitted to people through the bites of infected female Anopheles mosquitoes.” People are at most risk of malaria in countries with warmer temperatures as the disease spreads at a faster rate due to the weather conditions. In 2020, the WHO estimated the existence of a total of 241 million cases of malaria throughout the world, and at this stage, the number of deaths arising from the disease stood at 627,000. The WHO African region holds the highest number of malaria cases globally. In 2020, the region accounted for 95% of malaria incidents and 96% of malaria-related fatalities. Furthermore, children younger than 5 made up about 80% of all malaria-related fatalities in this region. Due to these statistics, UNICEF addresses malaria through several initiatives and programs.
How UNICEF Addresses Malaria
Long-lasting insecticidal nets (LLINs) are one of the most effective malaria prevention methods. These chemically- treated nets form a physical barrier to protect against malaria-infected mosquitos while an individual is sleeping. The net itself blocks the mosquito from getting to the individual and the insecticide kills the mosquito once it touches the net.
Data shows that LLINs have reduced malaria cases by about half in sub-Saharan Africa. For this reason, UNICEF uses LLINs as its first line of defense against malaria in affected regions. In 2021 alone, UNICEF utilized 40.9 million of these nets in its malaria prevention programs. UNICEF first began using LLINs in 2000 and has procured more than 275 million nets since 2012. These nets are affordable and last “up to three years or 20 washes.”
A Malaria Vaccine
In October 2021, the WHO recommended the use of the GlaxoSmithKline (GSK) RTS,S malaria vaccine among children in high-risk countries. According to GSK, long-term clinical studies show that it is “the first and only malaria vaccine” to remarkably decrease cases of malaria among children. The vaccine is the culmination of more than 35 years of research by GSK, PATH and partners.
In December 2021, Gavi, the Vaccine Alliance, announced that it would finance the rollout of this vaccine across child vaccination programs in eligible nations.
UNICEF addresses malaria through its announcement in August 2022 of an award of a contract of up to $170 million to GSK for the “first-ever supply of a malaria vaccine.” This contract will allow for the distribution of 18 million doses of the vaccine over the following three years. UNICEF highlights the importance of this vaccine by stating that in 2020, “nearly half a million children died from malaria in Africa alone, a rate of one child death per minute.”
UNICEF’s supply division director, Etleva Kadilli, commented on a UNICEF press release that “the vaccine rollout gives a clear message to malaria vaccine developers to continue their work” as these vaccines are both necessary and in demand. The vaccine is effective against the Plasmodium falciparum malaria parasite, which takes many lives across the world, to the greatest extent in Africa. As malaria is a global concern, demand for the vaccine is high and plans are already in motion to increase production of it with the hope of eventually immunizing every child against the disease.
Thanks to the work of researchers and organizations such as UNICEF, in endemic areas of the globe, vulnerable children under 5 will receive protection against malaria mortality.
– Claire Dickson
Photo: Flickr
Battling Rising Tobacco Use in Africa
Compared to the rest of the world, tobacco use in Africa is relatively low. A 2019 report from the World Health Organization (WHO) found that in 2000, the African region had a tobacco use prevalence rate of 18.5%, the lowest of any of the WHO regions.
However, as economic development in Africa continues to rise, with countries like Ethiopia and Rwanda seeing unprecedented expansion, tobacco consumption has also increased. The WHO now predicts that tobacco-related deaths are likely to double in the coming years within low and middle-income countries, many of which are in Africa.
Rising tobacco use is likely to have a detrimental effect on developing countries. The infrastructure to deal with the associated health issues is simply not in place. Facing this problem early will be crucial in giving African nations the best chance of reducing poverty and improving standards of living, along with overall health.
Targeting Emerging Economies
People commonly associate economic growth with positive changes, such as job opportunities and more money in our pockets. However, as consumers find they have more money to spend, companies are eager to market products to them. This includes the tobacco industry. In 2013, a committee of experts that the Network of African Science Academies convened found that “As the use of tobacco has declined in high-income countries, the tobacco industry has increasingly turned to low- and middle-income countries, particularly in Africa, Asia and Eastern Europe, to recruit new users.”
Tobacco manufacturers have used specific tactics to promote their products in African countries. According to a 2021 report published in the Bulletin of the World Health Organization, companies have encouraged local traders to sell individual cigarettes to attract young and low-income customers. Tobacco companies have also used promotional tactics, such as price reductions, coupons and giveaways, even though these practices are usually against the law.
Unfortunately for some African nations, as the economy has grown, the number of smokers has followed suit. For example, as the annual GDP consistently grew from 2009 to 2014 in the Democratic Republic of the Congo, tobacco use also increased.
The Burden on Health Care
Research has well documented that tobacco use causes health issues, such as cancer, stroke and lung disease. These are known as non-communicable diseases (NCDs) and case numbers are rising in Africa. This poses a problem for healthcare infrastructure. The World Economic Forum reported that most NCDs undergo treatment in large city hospitals, placing an additional burden on rural patients. Furthermore, many hospitals simply do not have the resources to treat so many cases.
Another factor to consider is the prevalence of infectious diseases, such as malaria, HIV and COVID-19. These afflictions have been a persistent burden on healthcare systems described as “fragile, fragmented, under-resourced and limited.” Increasing tobacco consumption will only exacerbate this problem.
The Effect on Poverty
Tobacco companies often cite job creation to justify their presence in developing countries. They go on to suggest that increasing taxes on tobacco products will cause people to lose their jobs.
Some developing countries indeed have tobacco-dependent economies. For example, a 2009 study found that Malawi relies on tobacco exports for 70% of its foreign earnings. However, placing more restrictions on tobacco could actually be beneficial for Malawi. It could “diversify [its] economy” and open it up to foreign aid for funding other industries.
Dr. Kenneth E. Warner made this same argument in his 1999 article, “The Economics of Tobacco: Myths and Realities,” published in Tobacco Control. Essentially, he stated that if a country is no longer dependent on the tobacco industry, this does not mean that it has no other industry to rely on. Resources can go toward developing other industries and consumers can spend their money elsewhere, generating new jobs.
The myth of economic development through tobacco is further debunked when one considers the financial burden of addiction. Studies found that rising tobacco use in Africa will exacerbate poverty. Money spent on tobacco products and the cost of treatment for associated diseases could cripple low-income families by affecting employment, not to mention the debilitating effects that these diseases cause.
Implementing Solutions
Thankfully, many African nations are taking measures to prevent their economies from becoming overly dependent on tobacco. Uganda is one of these nations. In 2015, the Ugandan government passed the National Tobacco Control Act, prohibiting tobacco sales to anyone under the age of 21. It also banned smoking in public buildings, such as schools and hospitals, and banned the advertising of tobacco products.
In recent years, media campaigns launched in Uganda, educating the public on the economic and health risks associated with tobacco use. They have also advocated for harsher taxation on tobacco products, which would generate funding for further tobacco control measures.
Another positive step is that 51 out of 54 countries in Africa have ratified the WHO Framework Convention on Tobacco Control, thereby committing to implementing policies to reduce tobacco consumption.
Tackling rising tobacco use in Africa is instrumental in reducing poverty and moving forward. Funding tobacco control measures is an important step in releasing pressure on African healthcare systems. It is time for the world to leave smoking in the past.
– Abbi Powell
Photo: Unsplash
President Arce and his Plan for Bolivia’s Development
On September 21, 2022, the President of Bolivia, Arce Catacora, gave a lecture at Yale University before participating in the United Nations General Assembly meeting in New York. Speaking to a small room of students and faculty, President Arce presented macroeconomic data from Bolivia’s last 20 years, noting successes during the 15-year reign of his political party, Movimento al Socialismo (MAS). Throughout his lecture, he emphasized a focus on resource extraction as the primary engine behind the country’s short and long-term growth.
About President Arce
President Arce began in a celebratory tone, comparing the successes of MAS’ socialist model compared to the “neoliberalist model” which existed before it. He noted that between 2006 and 2019, the years in which his party held power, GDP per capita grew by 4.7% compared to 3% from 1985 to 2005. He also spoke about Bolivia’s success in distributing those gains fairly, raising the income of the bottom 40% by 12.5% and adopting what he labeled a “democratization of the economy.”
Additionally, he stressed Bolivia’s financial stability, pointing out the country’s low levels of external debt. Drawing from data collected by the central bank, President Arce drew the crowd’s attention to the external public debt prior to the presidency of MAS’ Evo Morales, which reached a historic high of 63% of GDP in 2003. He then noted that after 2006, Bolivia’s external debt never rose above 33%, sitting at 28.9% of GDP under his administration.
Responding to critics of his “economic social communitarian productive model” he highlighted the continual growth of businesses in Bolivia as a sign of sustainable development. Beginning in 2005, Bolivia saw more than 250,000 companies originate over the course of 14 years, with smaller growth during the pandemic years. Going out of his way to address concerns over private investment under the socialist model, he claimed Bolivia had found a viable way to mix state involvement in the economy with entrepreneurship.
Bolivia’s Challenges
Although Arce’s presentation portrayed the last 20 years in an overwhelmingly positive tone, it omitted many of the challenges that Bolivia faces. Although his model is based upon natural resource extraction, with Bolivia’s primary resource being natural gas, this cannot keep up with the rate of growth of the Bolivian economy. In fact, Bolivia has already become a net importer of hydrocarbons, at a time when energy prices are at historic highs.
The Environment
In addition, Bolivia grapples with numerous environmental issues, including poor management of its portion of the Amazon rainforest. President Arce announced in July 2022 that he would be investing in palm oil to increase the country’s energy output, something that is both inefficient and environmentally harmful. Furthermore, Arce’s administration did little to quell the massive fires in Bolivia’s Chiquitania region, and his political predecessor Evo Morales actually signed a decree in 2019 making it easier for agribusiness to exploit the land. This is a far cry from his speech at Yale, in which he promised to “respect mother earth” after a question from a faculty member.
Human Rights Issues
The Justice System
Even within Bolivia, others have accused Arce and his party of tampering with the justice system for political gain. In June 2022 former interim president Jeanine Anez received a 10-year sentence in prison for plotting a coup, despite her rise to Bolivia’s supreme court upholding the president. Prosecutors claim she was part of a plan to remove President Evo Morales from office in 2019, despite the fact that she did not participate in the largely peaceful protests which led to his resignation. Anez claims her imprisonment is a purely political affair, designed to legitimize MAS after its fall from power after allegedly committing fraud to win the 2019 presidential election.
Looking Ahead
President Arce’s economic model has proven that it can succeed, and his presentation is a testament to the fact that Bolivia’s growth under nearly 20 years of MAS rule has been truly unprecedented. However, it does not take away from Bolivia’s murky future, and dubious record with human rights. The country has the economic potential to develop strongly, but strong political and environmental protections still remain uncertain.
– Samuel Bowles
Photo: Flickr
Panama Protesting Against Living Costs
In July and August 2022, Panamanians protested the rise in the cost of living in Panama, including food and gas costs. What started as teachers unionizing to oppose the cost increases, quickly turned into the largest protest since dictator, Manuel Antonio Noriega, was removed from power in 1989. Various Indigenous groups, unions and industry associations joined the teachers in this historic Panama protesting against living costs.
About What Has Been Happening in Panama
Due to the Russian-Ukrainian war, COVID-19 and the high inflation rates in Panama, the cost of living has been increasing significantly over the past few years spawning the Panamanian protest against living costs, specifically the rise in transportation, food and gasoline costs. In December 2021, the inflation rates were only 2.6%, but by May 2022, the inflation rates were 5.2%, a 100% increase.
Inflation has led to a jump in the cost of basic necessities such as food and gas. Transport prices have risen 16.1% since the start of the year.
Gas prices have been reaching an all-time high time in Panama. Since the start of the year, the prices have risen by approximately 50%, reaching a high in June. The average cost of a single food basket also significantly rose this year. Since last year, the price of a food basket has increased by approximately $18.
In 2019, an estimated 500,000 Panamanians were living under $5.50 per day, and more severely, 52,000 Panamanians were living under $1.92 per day. In 2020, an estimated 575,000 were living in poverty. Poverty is widespread in Panama but it hits the rural areas the most, affecting the Indigenous populations. According to the World Bank, in 2020, inequality in Panama was a high 49.2 on the Gini index, an index that measures the severity of class inequality. The high poverty rates among the indigenous people and lower class have been a factor in the establishment of Panama protesting against living costs.
The Impact of the Protests
Since the protests started there has been an estimated $500 million in economic losses. Food producers by themselves have lost approximately $131 million at the time of the protests.
Because of the duration and magnitude of Panama’s protests against living costs, negotiations between the protesters and the government have occurred, some resulting in a win. The government agreed in July to lower the price of gas to $3.95, a 24% decrease since the end of June.
However, the demonstrations continued and the government froze the cost of fuel at $3.25 in August. The government has also agreed to regulate the prices of 72 food items, a 30% saving on the price of a basket of food, which would in turn be more than $80 in savings.
The government has been dialoguing with the protesters and has made significant decreases in fuel and food prices. While some protests have turned violent involving the police, the government and the protesters are making their mark in history.
– Janae O’Connell
Photo: Flickr
International Volunteering and Poverty Reduction
International volunteering is the process of completing unpaid work in a foreign, and often developing country in great need. It is an extremely diverse practice and includes teaching, environmental conservation, and supporting communities. This is an excellent practice to have a positive impact on the people and environment of the country.
One can view international volunteering and poverty reduction as two interrelated aspects. The practice has received great commemoration for its impact and success in addressing poverty. For example, the U.N. recognizes international volunteering with International Volunteer Day, celebrated every year on December 5. Despite this, it is not without its criticisms.
International Volunteering and Poverty Reduction
According to World Vision, about 9.2% of the world’s population (689 million people) live in extreme poverty and survive on less than $1.90 a day. Poverty has extensive repercussions including hunger and food insecurity, increased crime and child mortality rates, political instability and corruption. Many households that suffer from poverty are exposed to precarious situations. For example, they deal with exploitation due to their limited access to employment. Poor labor laws, insufficient political and trade-union representation and general economic issues are making this issue worse.
Oftentimes, in these low-income and developing countries, there is a lack of key public infrastructure including schools, hospitals, security services and social protection schemes for people to access. Even in areas where they do exist, there is no way for the poor and marginalized to engage with them.
Others have regarded international volunteers as an under-recognized yet essential source to support poverty reduction and service delivery in low-income countries. In a 2015 report, Voluntary Service Overseas (VSO) discovered how they play a significant role in “bridging the gap.” Not only do they add to the number of those working, but they also bring their own experiences to the workforce, helping to ensure that the services are relevant to those using them.
In Mozambique between 2004 and 2008, the number of those providing home-based care for AIDS patients increased from 17,170 to 99,122 because of international volunteers.
In Lesotho in 2015, international volunteers had the task to design and implement training programs for more than 400 youth leaders in an initiative that was volunteer-run. Using social media, the volunteers were able to teach the youth leaders how to establish their own platforms and engage with other young people, thus, creating a sustainable method of poverty alleviation.
In Burkina Faso, a partnership between the Ministry of Youth and Employment, the United Nations Development Programme (UNDP), United Nations Volunteers and France Volontaires had tremendous results. They established programs designed to target the employability of young people in the early 2010s. They mobilized more than 13,000 youth volunteers which gained many new competencies such as how to access information on gender issues and learn about labor market competitiveness. Overall, the program resulted in 66% of the youth gaining ‘decently paid jobs’ after.
Disadvantages of International Volunteering
Despite international volunteering having a fruitful impact on poverty reduction in low-income and developing countries, it has been receiving extensive criticism as well. Perhaps the most condemned aspect of going abroad to volunteer is the idea of ‘stealing’ local job prospects. Rather than prioritizing local needs, organizations place money, effort and energy into international volunteer programs where the volunteer’s experiences and activities are often more important to some. Furthermore, volunteers tend to be young and inexperienced, and thus, can hinder poverty reduction. Shannon O’Donnell, the author of the Volunteer Traveller’s Handbook, stated that ‘”there is no doubt that volunteer programmes shift jobs from locals to potentially less skilled labour.”
Another key disadvantage is the duration of volunteer projects. Although many organizations offer and promote long-term projects, most of them are short-term. This is mostly based on the volunteer’s ability and time available to commit to a project. Like the criticism above, these projects become ‘volunteer centric,’ creating an array of short-term placements which enable a constant flow of new volunteers. This means that the organizations put more effort into training them rather than actually supporting poverty reduction initiatives.
An interrelated criticism focuses on international volunteering projects which focus on poverty reduction for children. During their time, volunteers build deep connections and relationships with children. They might do this by supporting their education in schools through lessons or extracurricular activities, community events or even helping in orphanages, all of which prove how the existence of volunteers is beneficial on multiple levels. As a result, the departure of these volunteers at the end of their projects may lead to psychological and emotional consequences for the children. Stephanie Halksworth from ReSet stated how these consequences include a “sense of abandonment, invalidation and stagnation.”
Ethical Volunteering: The Future of Poverty Reduction
The disadvantages stated above of international volunteering question its ethics and how these may be skewed in favor of the volunteer. A new form of volunteering branded as ethical volunteering emerged in 2016 to address these concerns. Ethical volunteering ensures that volunteers are not only doing so for themselves but also providing aid in a responsible and sustainable way. With support from the U.N., such activities are relevant to poverty reduction and staying aligned with this cause.
Here are five ideals associated with ethical volunteering:
International volunteering can be a positive force for supporting communities and poverty reduction. Regardless, its core elements have received critics, something which hints at the need for a change within the practice. Ethical volunteering overcomes these considerations and represents the future of international volunteering for poverty reduction.
– Harkiran Bharij
Photo: Flickr
Chile to Enter the CPTPP
In October 2022, Chile’s Congress passed a vote allowing Chile to enter the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), previously known as the Trans-Pacific Partnership (TPP), an international trade agreement. Chile, a nation that relies heavily on international trade, is joining the CPATPP to boost its economy and the global economy.
What is the Trans-Pacific Partnership?
In 2005, the CPATPP began as a five-nation agreement. The nations were Brunei, Chile, New Zealand and Singapore. In 2008, President George W. Bush agreed to begin talks for the United States to join this trade agreement. President Obama continued the trade agreement, with a finalized agreement by 2016. Unfortunately, President Trump pulled the U.S. out of the agreement, crumbling the TPP and forcing all 12 countries involved to re-plot the deal. The TPP then turned into the CPTPP.
The remaining 11 countries in the TPP moved forward to create their international deal, with the recent vote for Chile to enter the new international trade deal.
Eleven, soon to be 12, countries have ratified the deal to enter the CPTPP, a free-trade agreement aiming to boost domestic and global economies. For its members, the CPTPP removes 95% of the tariffs used commonly for international trade. The CPTPP eliminates all tariffs on sheep’s meat, wool and cotton. There are partial tariff eliminations for industrial/manufactured products, plants (medicinal or otherwise), wine, dairy products and beef (specifically Japan’s beef products). The CPTPP is the first international agreement providing a free market for e-commerce and no policies forcing ownership of one nation over an e-commerce enterprise. It protects foreign investments and keeps all parties safe from potential discrimination, thus creating fair and free trade that benefits all involved.
The CPTPP accounts for 40% of the global economy and in the case of the global trade value, about 25%. The CPTPP can create lasting positive effects on the global economy because of its impact on raising global GDPs. It can increase productivity and national income worldwide, bringing money into local economies, increasing wages, creating jobs and effectively lowering poverty rates worldwide. The potential benefits of the CPTPP convinced Chile to enter the trade deal.
Chile’s Global Trade
Chile is trusted internationally for its strong trade presence, but like the rest of the global market, Chile experienced some economic downturns during the COVID-19 pandemic, though it appears to be recovering. With the U.S., Chile has an established free-trade agreement. Chile already limits tariffs on its exports, welcomes foreign investments, and its open market operations. An open market, such as Chile’s, has no barriers to trade, i.e., no tariffs. Its economy is in solid shape with only around a 4% poverty rate. As many can benefit from Chile’s lack of tariffs, it is logical for Chile to seek similar financial gain elsewhere.
Chile’s main exports are copper, which accounts for 48% of all Chile’s exports, but it also relies on its exported manufactured and industrialized goods for income (38% of exports and export income). Chile earned $50.7 billion from copper alone in 2021, an incredible increase from $33.17 billion in 2020. Chile’s international presence and trade are substantial factors in the government’s decision for Chile to enter the CPTPP. The Chilean government hopes to promote additional changes regarding certain “state-to-state” trade operations in the CPTPP but remains hopeful for future economic prosperity.
The Benefits of the CPTPP
The CPTPP still has room for advancement as more countries enter it. Despite its newness, there has already been significant progress relating to the world of e-commerce. The CPTPP inspired e-commerce trade regulations and other free-trade agreements between Chile and Argentina. China, an important trading partner for most of the world, has applied to receive recognition as a full member of the CPTPP. China’s presence could entice other nations to follow suit, given its placement on the world stage.
The CPTPP protects small and medium enterprises (SMEs), a fact that Canada heavily promotes. About 47% of Chile’s businesses are SMEs. The presence of SMEs allows for local economic development and can attract foreign investments. As the world faces economic troubles and continued recovery from the COVID-19 pandemic, Canada reported stable and trusted trade and attributed this success to the CPTPP.
Many nations have already found the CPTPP beneficial in one way or another, be it regarding e-commerce trade, decreased tariffs or protection of SMEs. As a free market, Chile exemplifies the benefits and economic prosperity that the CPTPP can provide on a larger scale. Chile is an example of the kind of nation and partnership the trade deal seeks to create. When Chile enters the CPTPP, it can share its economic prosperity worldwide with strengthened trade partners.
– Clara Mulvihill
Photo: Wikimedia Commons
Foundation Fighting Child Poverty in Iraq
Although the statistics regarding child poverty in Iraq are exceedingly high, specific foundations aimed at finding solutions for this ever-growing issue (particularly, in a post-2020 world) are fairly difficult to come by. The COVID-19 pandemic created even more barriers to education, success and safety for children in Iraq, but the groups that do exist are working to shrink these numbers.
COVID-19’s Effect on Child Poverty in Iraq
The COVID-19 pandemic dramatically complicated the lives of Iraq’s youngest population in poverty, subjecting parents to make difficult decisions about the education and safety of their children.
About 4.5 million Iraqi citizens fell into poverty after the start of the COVID-19 pandemic. This extreme increase in numbers has led to “[l]osses to jobs and rising prices[,]” and the national poverty rate is now sitting at 31.7%. Because of this increase, the amount of children that live below the poverty line has almost doubled.
The combination of “low computer ownership, limited access to internet and poor connectivity” had left millions of children without education during the earliest wave of the COVID-19 pandemic. Those who could access their classwork, however, were also not receiving adequate education because their educators struggled with similar issues and failed to connect with their students. Following the economic impact of the pandemic, many families in Iraq are sending their children to work or, in more extreme cases, marrying them off in order to gain any form of protection or currency for themselves or their children.
Child Poverty in Iraq and its Connection with Sex Trafficking
Hardships, whether stemming from lack of resources, money, or education, left many children circulating in the ring of sex trafficked victims.
Due to Iraq’s large population, its staggering number of children (47%) are consistently at a greater risk of sexual exploitation. Some children resort to “survival sex” in an attempt to break free from the cycle of abuse that they experience. Examples of “survival sex” include superiors forcing young boys to grant them sexual favors to earn their work wages. Families that find themselves below the poverty line can, in an attempt to “protect” their daughters, marry them off in order to receive a “bride price,” or “an amount of money, property or other form of wealth ‘paid’ to the parents of a woman for the right to marry their daughter.”
The Iraqi Children Foundation
The Iraqi Children Foundation (ICF) is an organization that aims to eradicate these issues. Its mission “to intervene with love and hope in the lives of children who are vulnerable to abuse, neglect, and exploitation by [criminals], traffickers, and extremists,” is possible by providing accessible resources to struggling families. The ICF aims to give every Iraqi child a voice and to restore their sense of worth.
A pair of Americans who worked to provide basic necessities for disadvantaged Iraqi children founded the Iraqi Children Foundation in 2007. Since its creation, the ICF continues to hold an abundance of annual events in order to raise funds and awareness towards the issues facing the population of children in Iraq. In 2022, the Foundation celebrated 10 years of its In Their Shoes 5K, where hundreds of participants walked in Washington, DC to support the benefit project. The ICF’s Annual Report relays that 2021 was its most successful year thus far, nourishing more than 500 children and protecting thousands from abuse and child labor.
– Aspen Oblewski
Photo: Flickr
Reduce Poverty With Microfinance: UNRWA Helps Palestinian Refugees
In order to implement its programs to help Palestine refugees in the Middle East, the United Nations created the United Nations Refugee and Works Agency for Palestine Refugees (UNRWA) in 1949. UNRWA is working to help and protect all registered Palestine refugees in the area. The major part of the budget of UNRWA is coming from the U.N. Member States through voluntary contributions. UNRWA is a very unique agency as it is the first time that an organization has dedicated itself to helping a specific group of refugees for such a long time.
UNRWA is especially in charge to fight against poverty among the Palestine refugees. According to the numbers of the World Bank, more than 20% of the population of Palestinian territories are living below the poverty line of $5.50 a day.
For instance, in Lebanon, 70% of the active population of Palestine refugees living in the country did not have employment in 2019. Furthermore, the Palestine workers in Lebanon were the first victims of the crisis in Lebanon that occurred in 2019, as the Palestine workers were the first ones who experienced expulsion or a reduction of 50% of their wages.
Among the various tools that UNRWA uses to counter poverty among Palestine refugees and within the Palestinian territories, it utilizes its own Department focused on microfinance.
Microfinance, a Tool to Counter Poverty
According to the Cambridge Dictionary, Microfinance can be defined as “the activity or business of providing financial service to poor people or new businesses in poor countries.” As a matter of fact, microfinance services help organizations to support on a financial level poor people. Microfinance includes several financial tools such as loans and subsidies. With such financial resources, those poor people can improve their income as well as their livelihood. Indeed, they are using them for instance to create their own companies and cover their debts and so to have a new start in their life. This would only but allowing them to emerge from poverty to a more stable economic situation and ensure their financial sustainability.
When it comes to UNRWA, it established its own Microfinance Programme in 1991 in the city of Gaza to provide financial assistance to Palestine refugees but also to the poor and marginalized people among the locals. Then, the UNRWA Microfinance Programme was extended to the West Bank in 1994 and to Syria and Jordan in 2003 to help even more Palestine refugees and to reduce poverty with microfinance.
Microfinance is another tool that UNRWA uses to reach its goal entitled “A Decent Standard of Living.” This goal’s objective is to eliminate extreme poverty among Palestine refugees and marginalized groups in the Middle East and also to grant them new opportunities to develop their economic resources.
Microfinance, a Modern Financing Tool to Help Palestinian Refugees
The UNRWA Microfinance Programme developed many loans for Palestinian refugees and marginalized groups in the Middle East throughout the years. The goal was to reduce poverty with microfinance. Currently, the Programme has gathered nine different loans to help those in poverty implement small businesses and micro-enterprises or help families cover the education fees of their children.
About four of the nine loans focus on helping companies to grow and to create jobs. One of them is the microenterprise credit in order to help small businesses, less than five workers, which do not have access to credit. Another loan is the microenterprise credit plus, which aims to help small business to grow and develop. For small-scale companies with more than five workers, it is possible to ask for small-scale enterprise lending. The last loan within this category is targeting the owners of small-business by offering them some tips on how to develop their companies through small and medium enterprise business training, with donor grants paying for all costs.
Then, two of the nine loans are supporting the entrepreneurs by helping them with the creation and development of their startups. The Mubdarati – Youth Startup Loan is helping men and women between 18 and 30 to create their own businesses. The Start-Your-Business Loan Product provides funds to start-ups that people aged more than 30 years established.
The three remaining loans aim to help low-income families in covering costs for items like health care and education. The women’s household credit is supporting women in their daily life, helping them to establish activities that would generate income for them, which would help them increase household assets. As housing is an important right, UNRWA created the housing loan product to help poor families access property in 2006.
The last of the nine loans is the consumer loan product, which aims to help families pay for their children’s education or for health expenses.
The UNRWA’s Microfinance Programme’s Accomplishments
Since its creation in 1991, the UNRWA’s Microfinance Programme has granted more than 475,000 loans with a combined value of $531.41 million. Women have received 41% of this money and 28% has gone to youth since 1991.
Through those loans, the UNRWA is deeply involved in building a better economic situation for Palestine refugees in the Middle East and helping reduce poverty and unemployment with microfinance.
– Evan Da Costa Marques
Photo: Flickr
Indonesia’s Economy Prospers Despite Being Dubbed ‘Fragile’
Indonesia’s economy was a part of the “fragile five” emerging economies according to U.S. investment bank Morgan Stanley in 2013. Experts considered it to be the most vulnerable to any jumps in U.S. interest rates. However, Indonesia has remained surprisingly stable a decade later as U.S. interest rates have risen rapidly and a global energy, food and climate crisis are happening. With a booming economy and a stable political arena, Indonesia’s currency is currently performing the best in Asia. In addition, the country’s stock market is hitting record highs. As other countries in the region struggle to keep afloat, Indonesia prospers due to unique circumstances.
Indonesia’s Economy in 2022
The southeast Asian country, with a population of around 276 million, is extremely resource-rich. It has undergone impressive economic growth ever since the 1990s Asian financial crisis. According to the World Bank, Indonesia is not just the largest economy in the South-East Asian region but is also the 10th largest economy globally in terms of purchasing power parity. Since 1999, Indonesia has cut poverty rates by more than half to about 10% prior to COVID-19.
The COVID-19 pandemic caused a slight halt in the progress of Indonesia’s economy. For example, poverty rates rose from 9.2% in September 2019 to 9.7% in September 2021. Estimates indicated that the GDP growth of the country was 5.1% in 2022 as Indonesia recovers from COVID-19’s impact. One of the most significant impacts the pandemic had was on children’s learning capabilities. The pandemic resulted in the closing down of schools and could result in the stunting rate of the country increasing.
However, as of September 2022, Indonesia sees unprecedented growth and stability. The country has one of the lowest inflation rates in the world at 4.7% in August 2022, and the country’s GDP has expanded to 5.4%, much more than the amount that was estimated. With exports also increasing to 30.2%, the highest they have been on record, Indonesia’s economy stands in stark contrast to other countries in the region that have struggled with COVID-19’s impact.
Reasons for Indonesia’s Prosperity
One can credit the success of Indonesia’s economy to multiple factors:
Concerns for the Future
While Indonesia’s economy has remained stable, there are some concerns for the coming years. While the economy’s stability is not causing concern, the political factors are. Widodo’s lack of a clear candidate combined with the recent drop in his popularity due to cuts in fuel subsidies has raised concerns. Moreover, the country’s main commodity exports like coal are still a huge driving force behind the economy. Additionally, future commodity prices should drop. Many also predict an increase in inflation by October.
Despite such concerns, Indonesia has shown to be invulnerable to shocks like the COVID-19 pandemic and continues to outperform other countries in the region.
– Umaima Munir
Photo: Unsplash
5 Artists Who Use Their Platform To Speak Out Against Poverty
Today’s celebrities have a massive influence on a vast range of people. They are able to sway many people to support specific causes. Major artists around the world are using their platforms to speak out against poverty. Here are five celebrities aiming to alleviate global poverty.
5 Celebrities Aiming to Alleviate Global Poverty
Looking Ahead
The celebrities above are just a few voices in the sea of many that can speak out against global poverty. It is important to emphasize that one does not have to be a celebrity to influence people to take action against poverty; every voice matters.
– Madison Stivala
Photo: Flickr