On the surface, China has been a powerhouse in diminishing global poverty. Measured by individuals living with less than $6.85 a day, China’s poverty rate decreased from 63% in 2010 to 25% in 2019. Based on the country’s official poverty line, the World Bank states that, as of 2020, China’s national poverty rate is 0%. Martin Raiser, the World Bank’s representative in China, claims that China’s work accounts for roughly 70% of the world’s absolute poverty reduction. However, the People’s Republic of China maintains ingrained inequities due to how its hukou system restricts mobility.
What is the Hukou system?
The hukou system is the administrative tool used for population management and registration. The hukou system classifies individuals into urban and rural categories, assigning certain services to each classification, such as access to hospitals and schools. This policy dictates where individuals can live, work and own land in China. This restricts population movement by reserving government services like social security and public education only to citizens with proper hukou for the area in which they live. Changing one’s hukou is often expensive and almost impossible, depending on where the individual wants to live. Due to these policies, the PRC directly shapes available opportunities for urban and rural residents, contributing to stark disparities between its civilians.
China’s hukou system controls internal migration, manages social protection and preserves social stability. By restricting the legal right to live and work in cities without proper hukou, China achieved its goal of limiting the growth of megacities. This process helped mitigate the uncontrolled growth of urban slums, but many rural residents ignored hukou restrictions in search of better economic opportunities in cities.
Hukou Controls Mobility in China
Being born in a rural area causes those Chinese citizens to lose access to the job market in prosperous cities. Thus, they are often confined to living in the same region for most of their lives. Citizens need a temporary residence permit to spend more than three days outside their city or town, preventing free mobility like in other countries such as the U.S.
Some people born with rural hukou endure a complex and costly process to change their status, but many others lack the resources to go through this legal avenue. As a result, many rural residents migrate to cities without the allowed hukou, losing access to beneficial government services and often resorting to poor housing conditions.
Larger cities often limit new hukou to wealthy households, thus, leaving poorer urban residents with worse living conditions. Smaller cities usually accept rural migrants, making it easier for them to receive their desired hukou. While this process deters migrants from moving to larger cities like Shanghai and Beijing, it also puts millions of Chinese migrants in threatening conditions.
Ingrained Inequities in the Hukou System
The hukou system exists in tandem with growing income inequality. China’s Gini coefficient reveals high-income inequality: measuring inequality on a scale from 0 (low) to 1 (high), China’s is approximately 0.47 compared to 0.41 in the U.S.
While moving to urban areas increases access to higher-paying jobs, rural-to-urban migrants face significant penalties if they do not have an urban hukou. These workers lose access to health insurance, retirement allowances, unemployment insurance, maternity benefits, work insurance, employment and education. With more than half of China’s population living in cities, only 35% of urbanites have a city hukou. This disparity means more than 250 million migrant workers do not receive social security benefits.
The hukou system disadvantages rural residents more than city-designated dwellers by limiting their opportunities. On average, a farmer’s annual income equals about one-sixth of the average salary of an urban citizen. This steep income disparity is exacerbated by how farmers pay a tax rate three times the amount urban residents pay, presenting a great challenge for upward social mobility.
The Borgen Project spoke with Lauren He, a former resident of Shanghai, about the hukou system’s inequities. He stated, “Because of my urban hukou status, I have evaded many barriers migrants face when moving to cities like Shanghai.”
“My grandparents did not grow up with the hukou system, so they were able to move to Shanghai from the countryside with fewer complications than what migrants face today. This system deeply disadvantages those who cannot get the necessary hukou,” said He.
Consumption Poverty Rates Show Inequity
Despite persisting inequity due in part to the hukou system, studies have shown that rural-to-urban migration reduces poverty. Migrant workers move to increase their salaries, with many sending money back to their families in less prosperous rural areas, expanding economic growth and lowering the risk of poverty.
However, the hukou system has widened inequities in many ways. Many migrants work jobs more susceptible to market change, indicating a higher risk of impoverishment. In addition, while migrants may have lower income poverty, they still face the challenges of high consumption poverty rates. Migrant workers with urban hukous consume up to 30% more than their counterparts without the proper hukou status, revealing a disparity linked to the hukou system.
The Future of Poverty Reduction in China
While reforms continue in the hukou system, other programs in China are working to counter poverty through more direct action. In 1989, the China Foundation for Poverty Alleviation began its mission to combat poverty by organizing projects ranging from health care and education to economic development through infrastructure construction. Headquartered in Beijing, the CFPA targets domestic and global poverty, aiding the mission to end poverty for all.
With the work of organizations like CFPA and liberalizing restrictions on hukou, change may come to help eliminate disparities between urban and rural citizens in China.
– Michael Cardamone
Photo: Flickr
Lessons From Venezuela’s Plan Bolivar 2000
Venezuela is facing a grave humanitarian emergency, with the National Survey of Living Conditions finding that about three-quarters of the population live in extreme poverty in 2021. Unemployment is spreading, public services and basic supplies are scant and hyperinflation is lingering. Critics blame President Nicolás Maduro for driving Venezuela’s once-promising oil-led economy to a failed petro-state. On top of economic mismanagement, Maduro’s government oversees “brutal policing practices,” jailed political opponents and “poor prison conditions,” giving way to an escalating refugee crisis with around 5.5 million Venezuelans fleeing the country since 2014, according to data from October 2020. The circumstances today are a far cry from about 20 years ago when the government aimed to reduce poverty in Venezuela through a project called Plan Bolivar 2000. Though the project came to a premature end, the lessons from Plan Bolivar 2000 can guide future poverty reduction programs in Venezuela.
Plan Bolivar 2000
Launched in February 1999, newly-elected president Hugo Chavez developed Plan Bolivar as part of a mission to engage the national military in anti-poverty activities and pull the country out of the recession. Plan Bolivar included efforts from the Air Force to provide free travel to those urgently in need while the Navy helped to fix refrigerators and established fishing cooperatives. The National Guard engaged in policing and constructing homes for the impoverished and soldiers gave mass vaccinations and food distributions. Literacy programs also formed part of Plan Bolivar 2000.
Plan Bolivar 2000 saw success in its first year — the program’s efforts led to the reparation of “thousands of schools, hospitals, clinics, homes, churches and parks.” More than 2 million disadvantaged people “received medical treatment” and more than 2 million children received crucial vaccinations, among other successes, Venezuelanalysis.com said. The Venezuelan government also reported increases in literacy.
The Flaws in the Plan
The program placed a significant amount of money in the hands of the military. Chavez’s $114 million fund for Plan Bolivar 2000 gave officials a newfound sense of power — In 2018, Venezuelan officials arrested General Victor Cruz Weffer, the army commander overseeing the program, on charges of illicit enrichment through offshore accounts.
Chavez canceled Plan Bolivar in 2002, intending to divert money away from the military and toward “allies in mayoral and state offices.” This spurred a small group of high-ranking military officers to briefly arrest Chavez, who, upon release, “purged the [military’s] top ranks” and diluted the power of the Defense Ministry.
Chavez filled the Ministry with officials who supported his leftist ideals and gave them access to cabinet posts as well as control of banks. He also forced military officials to pledge allegiance to him, appointed numerous “military officials to helm agencies” across the country and named countless “new flag officers” – a practice that his successor Maduro continued after taking power in 2013. According to Venezuelan NGO Citizen Control, by 2017, “active and former military figures had held as many as half of Maduro’s 32 cabinet posts.”
Lasting Effects
These actions confused the military hierarchy and created a “jumbled and partisan chain of command,” according to a Reuters investigation. Top officials spend more time pleasing the Socialist Party and commanding troops through civic duties than they do organizing military affairs.
With intelligence agents embedded in the military, many officers fear speaking out against Maduro and the possibility of facing arrest. This, paired with the high pay and power positions that top officials receive, means that the military’s loyalty to Maduro is strong and unfading.
Armed forces make up a significant part of Maduro’s support, with many officers doubling as ministers or holding other influential positions in his government. Despite his economic mismanagement and human rights violations, which led to “more than 20 countries [recognizing] opposition leader Juan Guaidó as interim president” by January 2019, Maduro remains in power.
Humanitarian Efforts to Help Venezuela
World Vision is assisting Venezuelans who have fled to Colombia, Ecuador, Peru and Brazil, through its Hope Without Borders project. Refugees receive food, shelter, medicine and hygiene kits as well as psychological assistance through child-friendly spaces. As of June 2021, World Vision had provided assistance to more than 71,000 Venezuelan refugees.
Key Takeaways From the Plan
Due to years of corruption and military bloating, Plan Bolivar 2000 failed. However, its early years saw numerous successes across the country, with the military standing as a force for good in providing education, housing and health care to those in need. As Venezuela suffers now more than ever, it can consider Plan Bolivar’s success, as well as the reasons for its failure, as a lesson to inform future poverty alleviation programs.
– Imogen Scott
Photo: Wikimedia Commons
Why Most Families with Single Mothers in Japan are Living in Poverty
In Japan, 56% of families headed by single mothers are living below the poverty line. This is the highest of all the OECD nations, with the U.S. coming in a faraway second at 33.5%. Single mothers in Japan struggle enormously, despite living in one of the wealthiest countries in the world. This is the result of a toxic confluence of social expectations, corporate stigma and government negligence.
The Cause of Poverty Among Single Mothers in Japan
The original cause of this high level of poverty has roots in expectations about family environments. The social structure in Japan is very specific and well-established. There is an assumption, especially from the government, that every household consists of two people raising their children. In addition, it is widely expected and common for women to give up their careers and stay home to raise children. About 70% of Japanese women do just that.
However, as the divorce rate rises in Japan, this expectation is becoming a direct driver of poverty. There is no existence of the legal concept of joint custody in Japan and women are most commonly fully responsible for their children post-divorce. Less than half of the women receive any alimony or child support payments at all.
As a growing proportion of Japanese women become the sole provider for their families, they are taking on more economic responsibility. However, their economic rights and opportunity have not increased in tandem. This is what leads directly to poverty for single mothers in Japan. Women usually are only able to secure low-paying and part-time work, if they can get a job at all. Only 43% of Japanese mothers that want to return to the workforce are able to. Even if the mothers manage to snag a job, women earn 30% less than men for the same work in Japan.
Government Response to Divorce-Related Public Benefits
The government’s response to the issue worsened this phenomenon. As divorce rates rose and more single women applied for public benefits, the government implemented reforms to cut back on these social safety nets. In 2003, the government reduced allowances and tacked income and time limits to benefits. Even when available to mothers, twin stigmas about being poor and being divorced disincentivize struggling mothers from even accepting public benefits. Activists maintain that this stigma has led to only 200,000 of the 3.5 million eligible children receiving the financial assistance they are entitled to.
Left with extremely limited employment options and meager government support, single mothers in Japan and their children are vulnerable to falling below the poverty line.
Little Ones
Luckily, a nonprofit operating in the Tokyo area known as Little Ones is directly assisting single mothers and children in the everyday struggles they face. Little Ones focuses on supporting impoverished children by providing employment, housing and networking services to single parents in the country. Kunihisa Koyama, a social activist in Japan, founded the organization in 2008. The organization has since been able to house upwards of 300 single mothers.
Little Ones has identified isolation as a key factor in mothers’ poverty and the organization hosts regular gatherings and barbecues to allow single mothers to connect and create a supportive community amongst themselves. Further, the organization supports employment by helping single mothers secure and prepare for interviews, even assisting with such small details as makeup techniques. To support mothers in housing, Little Ones assists with the housing search, ensuring that mothers can be in a place that meets their needs.
Looking Ahead
Finally, on top of all this meaningful work to reduce poverty among single mothers in Japan, Little Ones also works to raise awareness about this little-known issue. As there is not much coverage of the hardships that single mothers in Japan face, this organization is doing important work by getting the word out. It is inspiring to know that someone is working to support these mothers who face so many social and economic roadblocks. With continued work and progress on this issue, poverty in Japan will be sure to decline.
– Grace Ramsey
Photo: Flickr
The John P. McNulty Prize: Supporting Leaders to End Poverty
In 2019, the World Bank stated that approximately 700 million people lived in extreme poverty, surviving on $1.90 daily. The future is optimistic though as extreme poverty decreased from 35% in 1990 to 8.6% in 2022. Thanks to the persistent efforts of governments, foundations, international non-governmental organizations and many others, global poverty is diminishing. In 2008, Anne Welsh McNulty established the John P. McNulty Prize “in honor of her late husband” in partnership with the Aspen Institute with the aim of supporting leaders to end poverty. Each year, leaders who address significant world problems, like global poverty, receive funding and “support to amplify their efforts.” Here are five women leaders and McNulty Prize winners who focus on global poverty reduction.
Navyn Salem, Edesia
Navyn Salem’s philanthropy journey began with a trip. In 2007, during a visit to Tanzania, her father’s home country, she witnessed child malnutrition firsthand. “A mother was crying inconsolably over the loss of her child. The child had starved to death,” the Edesia website described. Since that day, Salem made it her mission to prevent global malnutrition. In 2009, she founded Edesia Nutrition, which is the reason why she stood as one of the winners of the John P. McNulty Prize in 2022. Edesia Nutrition is a U.S.-based nonprofit organization that produces ready-to-use therapeutic food, like Plumpy’Nut, to end malnutrition. This organization has addressed hunger and malnutrition among more than 16 million children in 60 nations through successful collaborations with UNICEF, USAID, the World Food Programme (WFP) and more.
Jacqueline Novogratz, Acumen Global Fellowship Program
Jacqueline Novogratz gave up her career on Wall Street in 1986 to assist with launching Rwanda’s first microfinance institution. According to the McNulty Foundation, she “continued her work of using creative methods of financing to encourage development by starting Acumen” in 2001, an impact investment organization that invests in companies and individuals, working on global poverty with its “Patient Capital” model.
For her, this is a bridge between philanthropy and markets. Also, the Acumen Academy provides courses, fellowships and accelerators to support next-generation role models, innovators and leaders who focus on social change in different ways. The Acumen Global Fellowship Program is a one-year program that helps individuals to master the required “skills, attributes and values of moral leadership values”necessary to ignite social change. Through this program, Novogratz won the 2018 McNulty Prize Catalyst Fund, which “builds on a decade of the impact of the John P. McNulty Prize, a $100,000 award given annually to honor the visionary work of individuals moving the needle on intractable global challenges.”
Alexandra Kissling & Maria Pacheco, Vital Voices Central America
Vital Voices Global Partnership is a nonprofit organization that has supported women leaders all around the world since 1997. The organization has supported more than 20,000 women in more than 180 countries and regions. It supports women leaders because it believes “women are the key to progress in their communities and nations cannot move forward without women in leadership positions,” the Vital Voices website said.
Under this partnership, Maria Pacheco developed the Vital Voices Chapter in Guatemala in 2008. With her invitation, several other leaders attended the first Vital Voices conference in Central America. This led to the development of six chapters in the region and the founding of the Vital Voices Central America coalition by Pacheco and Alexandra Kissling.
Kissling is also the co-founder of Vital Voices Costa Rica. Overall, “the Vital Voices Central America network has touched the lives of [more than] 100,000 women and their families” through different programs. Women are now able to gain important skills in communication, entrepreneurship and leadership, career-building and community work. This is a crucial contribution considering that in this region, women are more likely to live in extreme poverty than men. Kissling and Pacheco won the 2019 McNulty Prize thanks to their dedicated efforts to fight against poverty in Central America.
Réjane Woodroffe, Bulungula Incubator
Réjane Woodroffe witnessed the utmost opposite conditions during commutes between Cape Town, South Africa, and a secluded community of villages on the southeast coast of the country. In one place, there were luxurious cars, fancy buildings and many job opportunities, whereas, on the other side, she saw extreme poverty and underdevelopment. The villages lacked roads, proper health care access, schools, electricity and sanitation.
After this eye-opening experience, she started to work on trying to end rural generational poverty. In 2007, Woodroffe founded Bulungula Incubator, which is the reason why she won the 2014 prize. Bulungula Incubator is a nonprofit organization that has goals to end poverty while improving community life through several programs. For instance, early childhood education, health and nutrition, sport, art, culture and economic programs through collaborations with government, non-governmental organizations and other associations. This is another example of supporting leaders to end poverty.
All in all, awards like the John P. McNulty Prize play a significant role in supporting leaders to end poverty. These types of awards not only provide monetary support to further leaders’ humanitarian work but also stand as motivation for future leaders who would like to play a role in poverty reduction. Announcing these types of awards to recognize winners is crucial for motivating the next generation of leaders.
– Irem Aksoy
Photo: Flickr
GPE’s Efforts to Strengthen Education in Niger
Barriers to Education in Niger
Despite substantial educational investments in Niger since 2012, enrollment remains low, according to UNICEF. While primary school enrollment (71%) has kept up with population growth, only 7% of children are enrolled in preschool.
The quality of education is also a significant issue in Niger as the country lacks qualified teaching professionals. In 2017, only one-third of educators had a sufficient level of teaching competency, according to UNICEF. Notably, only 20% of high school students successfully obtained their high school diplomas.
The lack of sufficient education facilities and staff impacts the most vulnerable groups the hardest, namely girls in rural areas. To facilitate universal education, teachers have to reach even the most remote areas to strengthen education in Niger. In 2017, the gross secondary school enrollment rate for girls in Niger stood at 21%, and for boys, this rate stood at 28%. Girls’ education is important because it leads to fewer child marriages and economic independence.
Through an informal education program, the most vulnerable children who have never received an education of any kind or have dropped out will be able to receive literacy training to develop their fundamental reading, writing and mathematics skills.
The Education and Training Sector Plan
Niger’s 2014-2024 education sector plan shows the Niger government’s commitment to improving education in the country. However, in 2018, the GPE provided Niger with a grant worth $482,007 to revise and strengthen this plan.
The education and training sector plan for 2014-2024 has several aims, which include:
Other GPE Support
The GPE has partnered with Niger since 2002 and has provided more than $214 million worth of grants to support education in the country. As part of the GPE COVID-19 response, the GPE provided Niger with $11 million through the support of UNICEF and the French Development Agency (AFD). This grant went toward implementing distance learning, especially in rural areas, and fostering the safe reopening of schools by establishing water, hygiene and sanitation facilities.
GPE partnership’s strategic plan brings together the organization’s assets, know-how and resources to work toward ambitious education goals in countries as vulnerable as Niger. Running from 2021 to 2025, the GPE 2025 strategy directly addresses Sustainable Development Goal 4 – “to ensure inclusive and equitable quality education and promote lifelong learning opportunities for all.”
In 2021 alone, GPE contributed $740 million in education grants, alleviating some of the additional pressure the COVID-19 pandemic has placed on education systems in developing countries. With the technical, financial and administrative help of organizations such as GPE, Niger is expected to improve the learning experiences of millions of children while catalyzing gender equality.
– Pauline Luetzenkirchen
Photo: Flickr
Lending a Helping Hand: Ukrainian Refugees in Moldova
However, since early 2020, Moldova has experienced a series of intense economic shocks beginning with the COVID-19 pandemic that led to an estimated loss of nearly 8% of jobs across the nation, disproportionately affecting young workers. In 2020, Moldova also experienced one of the worst droughts in recent decades, which reduced agricultural production by 34%. In late 2021, the European gas crisis adversely affected the nation for several months, which increased gas prices by 400%, until Moldova’s government signed a new contract with a Russian-controlled gas company. By February 2022, Moldova was beginning to recover from these shocks, but the sudden outbreak of war when Russian forces invaded Ukraine threatened Moldova’s immediate economic recovery and future trajectory.
How Moldova is Helping Ukrainian Refugees
Despite the nation’s challenges, Moldova’s government and citizens have made remarkable efforts to help Ukrainian refugees. Since the start of the war, more than 460,000 Ukrainian refugees fleeing the invasion have traveled through Moldova, with nearly 100,000 refugees choosing to remain in the nation. The Moldovan government immediately set up facilities for refugees, offering medical and psychological assistance at the war’s onset. Officials also extended the right to live and work in Moldova to Ukrainian refugees, along with access to health care services and education. Notably, 95% of the refugees are staying with Moldovan families.
Humanitarian Organizations Supporting Moldova’s Efforts
UNHCR, the U.N.’s Refugee Agency, has assisted the Moldovan government through a series of measures, expanding its staff by nearly 100 members in the nation since the crisis began. The agency is helping Ukrainian refugees and supporting the work of local authorities in Moldova by offering access to information, health and legal services, child protection services, initiatives to prevent human trafficking and gender-based violence as well as offering transportation to European Union countries. A core component of the UNHCR’s response effort is a cash assistance program that allows Ukrainian refugees to receive around 2,200 Moldovan Lei (equivalent to $120) each month. The process is facilitated through enrollment centers and mobile teams that help refugees enroll, and the program has already helped more than 50,000 refugees in Moldova receive cash.
The World Bank has also implemented initiatives to help Moldova build economic resilience and mitigate the impacts of the war in Ukraine. In June 2022, the World Bank allocated $159.24 million to Moldova as part of an Emergency Response, Resilience and Competitiveness Development Policy Operation (DPO). Moldova’s government remains committed to its social and economic developmental reform agenda, and this relief funding will allow the government to support the country’s immediate needs while also providing momentum for long-term recovery efforts.
– Oliver De Jonghe
Photo: Flickr
How SDG 7 Fosters Hope for India’s Energy Sector
India’s alignment with the Sustainable Development Goal 7 (SDG 7) is something to be applauded. It has facilitated affordable, reliable and modern energy for all through investing in green hydrogen, sustainable energy transitions and a bio-economy. As a pioneer of sustainable economic models for developing economies, India has been taking steps to fight against climate change. With ambitions to achieve net zero emissions by 2070 while meeting 50% of its electricity needs through renewable energy sources by 2030, SDG 7 fosters hope for India’s energy sector.
SDG 7 provides a reliable framework for sustainability, encouraging the expansion of infrastructure and technology improvements. By incorporating renewable energy sources that mitigate global climate change, policymakers have showcased how SDG 7 fosters hope for India’s energy sector.
India’s Current Situation
As the third largest electricity producer, India’s energy sector has always faced scrutiny, with high carbon emissions demanding attention. Its reliance on coal as a primary source and imported oil as a secondary source of electricity create formidable sustainability hurdles. Additionally, with the impact of the pandemic weighing heavily on India, interventions and government policies to align with the SDG 7 have been necessary.
In response, the Indian government has initiated programs facilitating sustainable energy transitions. Economic opportunities incentivizing projects have helped India make transitions to clean energy. In August 2022, the Indian cabinet approved a national plan to increase its commitment to reducing the emissions intensity of its GDP by 45%. Numerous stakeholders have applauded this move, especially given its adoption of industry-standard recommendations to achieve net zero emissions. Also, the Indian government has mandated a better and more efficient transport system with plans to support its operations with renewable energy.
According to recommendations from General Electric, “The government should ensure that power producers comply with new emission standards by 2022 for India to meet its emission targets.” Such sentiments stem from the opportunities and challenges identified in the Indian energy sector, particularly with the scale of investments in renewable energy. Additionally, national policies within the energy sector are shifting to accommodate the development of an efficient electricity market, creating extensive progress in achieving clean energy.
Focus on the Bio-economy
Indian Prime Minister Narendra Modi asserted that India is achieving significant growth in its bio-economy, as it has grown eight times what it was eight years ago. Because of this, achieving net zero emissions by 2070 is a real possibility. Notably, the government’s continued support of its biotech sector has ushered in a new culture of doing business. Modi stated that “the number of biotech incubators has increased from six in 2014 to 75 now.” Identifying the contributions of diverse sectors in these achievements, he underlined Indian professionals’ growing momentum and reputation in the global market as it tracks sustainability principles.
The focus on the bio-economy has also spurred growth in the transport sector as modernizing this public resource demands strategic alignment. Mobility remains a crucial factor in India’s economy, and responses to sustainable and cheap transport have sought long-term energy solutions. According to Economic Times, “Market forces are acting upon balancing the energy mix in the short run and shifting fossil fuel load to clean energy in the long run.” Thus, such energy transitions forecast a sustainable future for India’s energy sector.
Focus on Green Hydrogen
In February 2022, India established a framework for producing and exporting green hydrogen. In its ventures, India has even sought help from global funders to facilitate low-rate loans for green hydrogen projects. The focus on green hydrogen reflects the country’s efforts in diversifying energy sources. According to the Minister for Power and New and Renewable Energy, R K Singh, “We achieved universal access to electricity by electrifying more than 18,000 villages in under 1,000 days and more than 28 million households in just 18 months in what was the largest expansion of access in such a short time anywhere in the world.”
Overall, these decisions affect billions of Indians reliant on electricity and forge a better framework to reduce their reliance on coal and oil. In this context, the contribution of the public and private sectors sustains the growing prominence of India’s clean energy. They contribute to its vision to facilitate 50% of its electricity needs through renewable energy sources by 2030, indicating that SDG 7 fosters hope for India’s energy sector.
– Hanying Wang
Photo: Unsplash
China’s Hukou System Restricts Mobility
What is the Hukou system?
The hukou system is the administrative tool used for population management and registration. The hukou system classifies individuals into urban and rural categories, assigning certain services to each classification, such as access to hospitals and schools. This policy dictates where individuals can live, work and own land in China. This restricts population movement by reserving government services like social security and public education only to citizens with proper hukou for the area in which they live. Changing one’s hukou is often expensive and almost impossible, depending on where the individual wants to live. Due to these policies, the PRC directly shapes available opportunities for urban and rural residents, contributing to stark disparities between its civilians.
China’s hukou system controls internal migration, manages social protection and preserves social stability. By restricting the legal right to live and work in cities without proper hukou, China achieved its goal of limiting the growth of megacities. This process helped mitigate the uncontrolled growth of urban slums, but many rural residents ignored hukou restrictions in search of better economic opportunities in cities.
Hukou Controls Mobility in China
Being born in a rural area causes those Chinese citizens to lose access to the job market in prosperous cities. Thus, they are often confined to living in the same region for most of their lives. Citizens need a temporary residence permit to spend more than three days outside their city or town, preventing free mobility like in other countries such as the U.S.
Some people born with rural hukou endure a complex and costly process to change their status, but many others lack the resources to go through this legal avenue. As a result, many rural residents migrate to cities without the allowed hukou, losing access to beneficial government services and often resorting to poor housing conditions.
Larger cities often limit new hukou to wealthy households, thus, leaving poorer urban residents with worse living conditions. Smaller cities usually accept rural migrants, making it easier for them to receive their desired hukou. While this process deters migrants from moving to larger cities like Shanghai and Beijing, it also puts millions of Chinese migrants in threatening conditions.
Ingrained Inequities in the Hukou System
The hukou system exists in tandem with growing income inequality. China’s Gini coefficient reveals high-income inequality: measuring inequality on a scale from 0 (low) to 1 (high), China’s is approximately 0.47 compared to 0.41 in the U.S.
While moving to urban areas increases access to higher-paying jobs, rural-to-urban migrants face significant penalties if they do not have an urban hukou. These workers lose access to health insurance, retirement allowances, unemployment insurance, maternity benefits, work insurance, employment and education. With more than half of China’s population living in cities, only 35% of urbanites have a city hukou. This disparity means more than 250 million migrant workers do not receive social security benefits.
The hukou system disadvantages rural residents more than city-designated dwellers by limiting their opportunities. On average, a farmer’s annual income equals about one-sixth of the average salary of an urban citizen. This steep income disparity is exacerbated by how farmers pay a tax rate three times the amount urban residents pay, presenting a great challenge for upward social mobility.
The Borgen Project spoke with Lauren He, a former resident of Shanghai, about the hukou system’s inequities. He stated, “Because of my urban hukou status, I have evaded many barriers migrants face when moving to cities like Shanghai.”
“My grandparents did not grow up with the hukou system, so they were able to move to Shanghai from the countryside with fewer complications than what migrants face today. This system deeply disadvantages those who cannot get the necessary hukou,” said He.
Consumption Poverty Rates Show Inequity
Despite persisting inequity due in part to the hukou system, studies have shown that rural-to-urban migration reduces poverty. Migrant workers move to increase their salaries, with many sending money back to their families in less prosperous rural areas, expanding economic growth and lowering the risk of poverty.
However, the hukou system has widened inequities in many ways. Many migrants work jobs more susceptible to market change, indicating a higher risk of impoverishment. In addition, while migrants may have lower income poverty, they still face the challenges of high consumption poverty rates. Migrant workers with urban hukous consume up to 30% more than their counterparts without the proper hukou status, revealing a disparity linked to the hukou system.
The Future of Poverty Reduction in China
While reforms continue in the hukou system, other programs in China are working to counter poverty through more direct action. In 1989, the China Foundation for Poverty Alleviation began its mission to combat poverty by organizing projects ranging from health care and education to economic development through infrastructure construction. Headquartered in Beijing, the CFPA targets domestic and global poverty, aiding the mission to end poverty for all.
With the work of organizations like CFPA and liberalizing restrictions on hukou, change may come to help eliminate disparities between urban and rural citizens in China.
– Michael Cardamone
Photo: Flickr
Human Trafficking in Tajikistan
The U.N. Trafficking Protocol defines human trafficking as “the recruitment, transportation, transfer, harboring or receipt of persons, by means of threat or use of force or other forms of coercion, of abduction, of fraud, of deception, of the abuse of power or of a position of vulnerability or of the giving or receiving of payments or benefits to achieve the consent of a person having control over another person, for the purpose of exploitation.” Human trafficking in Tajikistan is a pertinent issue — The U.S. State Department’s Trafficking in Persons (TIP) report of 2021 lists Tajikistan as a Tier 2 country, joining the ranks of Saudi Arabia, Sierra Leone and Panama.
Tajikistan’s TIP Ranking
A Tier 2 ranking means “Tajikistan does not fully meet the minimum standards for the elimination of trafficking, but it is making significant efforts to do so.”
The TIP 2021 report highlights that instances of human trafficking in Tajikistan itself are less common. Rather, traffickers exploit Tajikastini people who have migrated to other countries for financial reasons. In particular, “Labor traffickers exploit Tajikistani men and women in agriculture and construction primarily in Russia, UAE, Kazakhstan and Saudi Arabia, as well as in other neighboring Central Asian countries, Turkey and Afghanistan,” the report said.
Additionally, women who lost their husbands to armed conflict and are struggling for money are more vulnerable to “coercive local marriages” containing elements of forced labor or sex trafficking. The onset of the COVID-19 pandemic led to widespread job losses and income cuts, exacerbating the financial stability of Tajikistani families and making them more vulnerable to the lure of traffickers.
In the 2021 report, Tajikistani “authorities identified 24 trafficking victims during the reporting period, compared with 53 in 2019.” However, authorities did not supply “information on victims’ nationalities, genders, ages, locations or types of exploitation.”
In terms of prevention efforts, while the government ran a 24-hour trafficking hotline for victims, the government did not note the number of phone calls that led to trafficking victim identifications.
In previous years, the police force has used a registry of names of sexual minorities to blackmail these individuals into “sex trafficking and forced informant roles.” While same-sex relationships are legal in Tajikistan, sexual minorities face discrimination and stigma from both the authorities and the public. Tajikistan created an “official list” of LGBTQI+ citizens in 2017.
The TIP report says that the government of Tajikistan has achieved “a significant increase in trafficking convictions” as well as provided “shelter to more victims than the previous year.” However, the report also highlights “allegations of possible official complicity in some localities” but Tajikistan did not report any investigations or arrests regarding the matter.
Creating Change
The report recommends creating “standard operating procedures for identifying trafficking victims and referring them to care.” It also encourages the government of Tajikistan to focus on vulnerable groups at risk of trafficking such as “LGBTQI+ individuals [and]foreign and returned Tajikistani migrant workers,” among others.
U.N. human rights expert Siobhán Mullally recommended that the Tajikistan government increase protections for refugees from Afghanistan, Iraq and Syria. Mullally also says the nation must address the stigma and discrimination that female sex trafficking victims face when seeking help.
The government should also provide financial support to female-headed households and female informal workers as these groups are more susceptible to trafficking due to their generally impoverished economic circumstances.
The International Organization for Migration (IOM) plays an important role in combating human trafficking in Tajikistan. In 2019, one day before World Anti-Trafficking Day (July 30), the IOM held a national youth debate tournament centering around human trafficking. This aims to raise awareness of human trafficking in Tajikistan. In 2019, the IOM also gave “direct assistance” to 17 human trafficking victims in Tajikistan and “prevented eight other cases of potential trafficking.”
While Tajikistan is progressing in the right direction in terms of efforts to reduce human trafficking, the government must make more concerted efforts to provide greater support to the most vulnerable groups.
– Priya Maiti
Photo: Flickr
5 of Queen Elizabeth’s Charitable Efforts
Queen Elizabeth was the patron of more than 600 charities during her lifetime. She inherited most of these charities from her father, however, the Queen paid service to additional charities that held a special place in her heart. Here is a list of five of Queen Elizabeth’s charitable efforts that she serviced during her reign.
The British Red Cross Society
When her father, George VI, passed away in 1952, Queen Elizabeth inherited the role of Patron. Her Majesty donated funds for disaster relief efforts. The Queen made many visits to visit Red Cross staff and show British support for many appeals both worldwide and domestic.
The Queen donated to the Red Cross more than 40 times throughout her reign. One of her latest acts as Patron was visiting the survivors of the Manchester arena bombing where Red Cross staff came to help people injured in the crowd.
The Queen’s Commonwealth Trust
This trust helps fund commonwealth leaders and their organizations so that they can provide aid to their communities. The trust originated in 2018 in recognition of the Queen’s love for service and her great global impact. The trust is a global program that focuses on aiding young people to help transform their communities across multiple areas. Recently, The Queen’s Commonwealth Trust helped an organization provide health care to rural areas in Uganda.
Less than 0.1% of international aid goes to these young Commonwealth leaders and organizations and the Queen’s Commonwealth Trust plans to provide its assistance to these smaller organizations. By the end of March 2022, the organization had earned £532,499 in donations. The trust is continuously growing.
Friends of the Elderly
One of Queen Elizabeth’s charitable efforts was Friends of the Elderly, which is an organization that began in 1905. The mission of the organization is to support older people to live life well. The organization provides grants for the elderly who live on a low income. The Queen served as Patron for more than 60 years. The Queen hosted receptions at Buckingham Palace to meet with some of the people who benefitted from the charity’s work.
The pandemic was especially hard for Friends of the Elderly as it had to close down many of its retirement homes to the public. However, as of 2020-2021, the organization raised £195,848 in grants that helped support 587 older people.
The Disaster Emergency Committee
The Disaster Emergency Committee is a combination of 15 U.K. aid charities collectively pooling resources to provide relief to overseas countries facing crises. These charities work to bring awareness to the U.K. population. The Committee has been working to provide assistance to different organizations since 1963. It has raised nearly £2 billion and used that money to save lives and rebuild communities.
In 2005, she donated to support efforts after the Kashmir earthquake. More recently, the Queen made a generous donation to the Disasters Emergency Committee’s Ukraine Humanitarian Appeal. The Queen made the donation using her private funds. The Committee plans to distribute these funds to five charities working in Eastern Europe.
The Aberdeen Association of Social Services
Among other things, the Aberdeen Association of Social Services serves to reduce the number of men, women and children of all ages living in poverty. The Association for Improving the Condition of the Poor came into being as an organized response to supporting the people of Aberdeen. The main focus of the organization is on enabling the impoverished to be able to help themselves.
In March 1870, when the organization was the Association for Improving the Condition of the Poor, Queen Victoria accepted the position of Patron. Ever since Queen Victoria, the reigning monarch has been the Patron of the Aberdeen Association of Social Services.
Queen Elizabeth’s charitable efforts have had a significant impact on people living in poverty and experiencing disasters. Many will remember the generous service of Queen Elizabeth II.
– Kiara Finch
Photo: Flickr
USAID Addresses Poverty in Northern Kenya
Despite pastoralism having an approximate value of $800 million, poverty in Northern Kenya is rampant. Five out of the 10 frontier counties are among the poorest in the country with six out of every 10 people living below the poverty line. Due to the harsh climatic conditions, settlements are temporary and dependent on the availability of water and pasture. Pastoralism in northern Kenya is a fragile industry as farmers frequently lose livestock to drought and disease which leads to food insecurity. It is for these reasons that the government has launched several poverty alleviation and development initiatives in conjunction with the international community.
The Frontier Counties Development Council (FCDC)
Kenya’s Frontier Counties Development Council originated in 2016, bringing together the 10 northern counties as one economic bloc. These counties are Turkana, Marsabit, Wajir, Mandera, Garissa, Lamu, Tana River, Isiolo, Samburu and West Pokot. The Kakuma Refugee Camp is located in Turkana whose northern border is shared with South Sudan and the Dadaab Refugee Complex is found in Garissa with Somaliland to the east.
The purpose of the council is to promote security and socioeconomic development through inter-county partnerships. It intends to strengthen unity and streamline policy implementation between the frontier counties and the rest of the country. Through collective action, the FCDC aims to resolve short-term regional issues, promote resilience, achieve efficient growth through innovation, foster social entrepreneurship and lay the groundwork for medium to long-term sustainable development.
To achieve these objectives the FCDC has also partnered with numerous external partners including the Alliance for a Green Revolution in Africa (AGRA), UKaid, UNDP, the EU, Mercy Corps and most recently USAID. The USAID Kuza program began in 2019 with the aim of addressing poverty in Northern Kenya by developing its local economy through financial and technical investment.
USAID KUZA
The intention of the Kuza program is to reduce dependence on humanitarian assistance and to reduce poverty in Northern Kenya by building economic resilience in the region. This achievement is possible by accelerating public and private investment and strengthening the county’s capacity for development. The program received the $14 million Impact for Northern Kenya Fund from USAID Kenya to undergo distribution to local small-to-medium businesses.
Notably, USAID enlisted AV Ventures to facilitate the implementation of the program. AV Ventures is the subsidiary body of the nonprofit organization ACDI/VOCA based in Washington D.C. and specializes in financing small-to-medium enterprises. It serves as the lending intermediary between the USAID Kuza program and more than 20 local financial establishments. These include banks, fintech, microfinance institutions and Savings & Credit Co-operatives that want to expand their reach into the region.
Conclusion
Ending poverty takes more than providing assistance. It is also about helping others help themselves. The USAID Kuza program and other USAID programs in the country are following this principle by injecting efforts into initiatives that can create long-term and sustainable change. Poverty in Northern Kenya is not a problem that occurred in only a few years but one that has almost become entrenched due to decades of underdevelopment and neglect. It will take the efforts of the Kenyan government, the Kuza program and the consistent support of others to undo the damage and finally turn things around.
– Kena Irungu
Photo: Flickr