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COVID-19, Global Poverty

The Impact of COVID-19 on Poverty in Iran

Impact of COVID-19 on Poverty in IranAs the virus rapidly spread across countries, COVID-19 turned the whole world upside down. This inevitably brought many changes to people’s lives, from social interactions and daily activities to health concerns and working habits. The pandemic also heavily affected Iran. According to the Middle East Institute, the unemployment rate rose from 20% to 35% just a few months after the outbreak, providing some insight into the impact of COVID-19 on poverty in Iran.

The Impact of COVID-19 on Poverty in Iran

The Iranian government has implemented several COVID-19 restrictions. According to Medical Press, the latest policies included the closure of non-essential shops, government buildings and banks. In addition, Iran implemented travel bans and the closure of some businesses to slow down the spread of the virus.

The pandemic has exacerbated Iran’s economic crisis and saturated its health system, with daily cases reaching a record of 39,600 as of August 8, 2021. With thousands of deaths and a declining economy due to government restrictions, many people experienced anxiety, stress, depression and other mental health issues. As the Mental Health Foundation states, “Poverty increases the risk of mental health problems and can be both a causal factor and a consequence of mental” illness.

Government restrictions, along with the other effects of the pandemic in the country, inevitably had an impact on people’s well-being. An International Journal of Mental Health Systems study showed that, during the COVID-19 outbreak, the Iranian population faced a significant mental health problem. In fact, about 15.1% and 20.1% of the general Iranian population, respectively males and females, experienced significant anxiety and depressive symptoms.

The numbers that emerged from the study show evident mental health impacts affecting a large portion of the population. However, the country might find some hope thanks to the Iranian government’s response.

Iran’s Response Plan

In this context, the Department for Mental Health and Substance Abuse of the Ministry of Health and Medical Education of the Islamic Republic of Iran established a plan to provide essential services for mental health, such as consultation support. The Ministry first implemented an assessment to determine the needs of Iran’s population regarding mental health and what the mental health system would need in the case of finances and infrastructure.

The identification of the population’s needs following the assessment resulted in the creation of training programs for mental care staff to best support the population. It also led to the implementation of several measures that prioritized the issues emerging from the collected data. Three weeks after the first outbreak of the pandemic, the Ministry of Health and Medical Education created a helpline across the national territory so that Iranians could have access to the essential services that mental health professionals provide. In the first nine months, the helpline received an average of 5,130 calls daily.

In addition, the government launched programs focusing on the well-being and mental state of COVID-19 survivors, such as psychological counseling sessions to support citizens facing mental repercussions after contracting the virus and people enduring significant losses due to the pandemic.

Mental Health Services in Iran and Digitalization

The pandemic inevitably led to great transformations, which include accelerating digitalization throughout the world. In Iran, mental health services reflected this change as these services adapted to meet social distancing policies. These services are, in fact, remote as well. In collaboration with the Ministry of Information and Communications Technology, the government developed a virtual platform that guarantees easier access to psychological support and mental health care. The government established the platform along with the helpline, in order to support those in need of deeper psychiatric mental care and people with significant anxiety and depression issues.

To recover from the COVID-19 crisis, mental health interventions are important. As a World Health Organization (WHO) report states, “Previous experiences from other crises have confirmed that timely mental health intervention is critical for medical staff caring for patients, in this case, those affected by COVID-19.” Mental health issues can, in fact, significantly affect the confidence and skills of medical staff. In addition to the physical impacts of COVID-19, the mental conditions fueled by poverty in Iran require addressing to ensure the well-being of Iranian citizens across the country.

The implementation of a series of policies focusing on mental health in Iran reflects a positive move toward an efficient and steady recovery from the pandemic’s social and economic crisis. Through continued work, measures could reduce the overall impact of COVID-19 on poverty in Iran.

– Arianna Pappone
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2021-09-09 11:57:072021-09-13 01:16:16The Impact of COVID-19 on Poverty in Iran
Global Poverty, Human Trafficking

The Road to Eliminate Human Trafficking in Morocco

Human Trafficking in MoroccoWhile human trafficking in Morocco persists, this small North African country is working to end it. The U.S. Department of State identifies Morocco as a Tier 2 country, meaning it has taken steps to eliminate human trafficking but it does not yet meet minimum standards. In 2016, Morocco enacted an anti-trafficking law, laying the groundwork to tackle this issue. Morocco addresses human trafficking in a variety of ways, including partnering with organizations that spread awareness, providing resources to victims and preventing future trafficking.

Types of Human Trafficking in Morocco

Human trafficking in Morocco includes unpaid domestic labor, forced begging and sexual exploitation. Children can become victims when their families, usually from low-income backgrounds, send them away to work. Boys often become agricultural laborers or work in trades such as carpentry or mechanics. Meanwhile, girls typically work as domestic servants or experience exploitation through sex trafficking. Despite Morocco’s child labor law and a 2018 law that specifically protects domestic workers, employers frequently pay these children far below minimum wage and abuse them. Traffickers also force migrants into sex work and other types of labor. Morocco’s major cities are destinations for “sex tourists” from Europe and the Middle East who take advantage of trafficked women and children.

Who are the Victims?

The U.S. Department of State reported that, in 2020, Morocco identified 441 trafficking victims and referred them to care. Of these reported victims, 245 were female, 196 were male, 398 were adults and 43 were children. The majority (426) were Moroccan citizens, although migrants from sub-Saharan Africa and South Asia were also vulnerable. Some migrant human trafficking victims may have gone unidentified.

Families who are struggling economically contribute to trafficking by taking children out of school and sending them to work, where they often experience exploitation. Traffickers also frequently target migrants, some of whom are undocumented and are passing through Morocco en route to Europe. The U.S. Department of State reported that traffickers who abuse migrants often come from the same countries as their victims. Traffickers may use physical and emotional abuse or withhold migrants’ passports to keep them in servitude.

How Morocco is Addressing Human Trafficking

In 2016, Morocco enacted Law No. 27.14. This law defines human trafficking victims as well as human trafficking crimes and their penalties. Under this law, the government provides victims with medical and psychological assistance as well as free legal aid. Morocco’s anti-trafficking law also created a national commission to stop human trafficking and prevent future cases from occurring.

In addition to policy changes, Morocco addresses human trafficking by working with organizations locally and abroad. SAVE, which stands for Soutien à l’identification et l’accompagnement des Victimes de Traite des êtres Humains, is a three-year project that aims to identify and support trafficking victims in Morocco. In 2019, the French nonprofit CCEM founded SAVE, which the European Union funds. SAVE partners with the Moroccan government and several Moroccan nonprofits. The goals of the project include receiving at least 500 trafficking reports and identifying a minimum of 100 victims by 2022. It also hopes to share best practices with other nations in the region.

Moving Forward

While Morocco has made progress in ending human trafficking, more work is necessary. According to the U.S. Department of State, Morocco’s efforts in prosecuting and convicting human trafficking cases have decreased. Additionally, migrant trafficking victims still receive unfair punishment for crimes, such as immigration violations and prostitution, that traffickers forced them to commit. The U.S. Department of State’s recommendations include establishing systemized procedures to identify victims, especially migrants, separating data on human trafficking and migrant smuggling crimes and providing training on Morocco’s anti-trafficking law.

In an interview with U.N. Women, Amina Oufroukhi, president of the International Judicial Cooperation Department, noted that victims are often afraid to seek help, making identifying human trafficking difficult. To address this problem, Oufroukhi has helped create a network of prosecutors who have training in victim identification and established a Moroccan public awareness campaign. She is also working on a guide that will help prosecutors better apply Morocco’s anti-trafficking law. Oufroukhi further hopes the government and organizations will continue to build trust with those affected and that more research on human trafficking and migration in Morocco will occur.

Human trafficking continues to plague Morocco. However, efforts by the government as well as organizations working on the ground have made great strides in protecting the rights of victims and preventing future exploitation and abuse. As Morocco addresses human trafficking with a diverse set of invested stakeholders, there is hope that its most vulnerable populations will eventually live in freedom.

– Annie Prafcke
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2021-09-09 09:39:212024-06-06 01:05:39The Road to Eliminate Human Trafficking in Morocco
COVID-19, Global Poverty

The Impact of COVID-19 on Poverty in Ukraine

Impact of COVID-19 on Poverty in UkraineThe COVID-19 pandemic has proven to be a global risk on many fronts other than health. As lockdowns extend and new variants claim dominance, countries are finding it challenging to fight poverty. In the east, the impact of COVID-19 on poverty in Ukraine could reverse multiple years of joint efforts for the country to gain economic stability. In response, the Ukrainian government is taking action to boost domestic economic value while the World Bank is offering loans to help eliminate the harsh effects of the pandemic on Ukraine’s impoverished.

Ukraine Before COVID-19

At the end of 2019, Ukraine was well on its way to creating stable economic infrastructure with its unemployment rate reaching a five-year low of 7.3%. Respectively, Ukraine’s employment rate topped 69% at the end of 2019, the highest it has reached in more than 25 years. Aside from employment security, Ukraine had seen constant growth in year-on-year comparisons of its GDP from 2016-2020, averaging 2.8% growth per quarter.

How COVID-19 Could Increase Poverty in Ukraine

Although the post-Soviet nation had 43.2% of its population living below the poverty line in 2018, UNICEF has projected that the rate of those in poverty in Ukraine will increase by 5% by the end of 2021. Additionally, Ukraine’s employment rate has dropped steadily throughout 2020, starting at 67.9% and reducing to 64.3% in the last quarter of 2020. Astonishingly, after the first quarter of 2021, employment rates in Ukraine dropped to 55%.

As of October 2020, the UNOCHA reported that 80% of Ukrainian households ended up with reduced income. Subsequently, unemployment rates in Ukraine have risen to 10.5% in the first quarter of 2021. Contextually, the highest it has reached since the annexation of Crimea in 2014.

Despite the impacts of COVID-19 on poverty in Ukraine, the country has increased its GDP by 5.4% in the second quarter of 2021, Ukraine’s largest GDP growth rate in 10 years and its first-period growth since the beginning of the pandemic in early 2020. National legislation and loans from the World Bank are major contributing factors to this growth.

Ukraine’s “Adaptive” Lockdown

While cases surge in Ukraine, the country is panning out to be one of the hardest-hit nations in Europe with more than two million confirmed cases. As of early August 2021, the government ordered a strict lockdown until October 1, 2021, in hopes of minimizing any future impact from COVID-19 on poverty in Ukraine. The adaptive lockdown measures allow regions to either ramp up or loosen lockdown restrictions depending on the number of cases in the area.

World Bank Loans

The World Bank loaned the Ukrainian government $150 million in April 2020, $300 million in December 2020 and $100 million in May 2021. The loans respond to the impact of COVID-19 on poverty in Ukraine in accordance with the Ukraine Access to Long Term Finance Project.

The funds will help strengthen social safety nets such as Ukraine’s Guaranteed Minimum Income Program (GMI) and provide loans to small and medium-sized businesses. This will help build programs and projects that assist in fighting poverty and prevent further COVID-19 impacts.

The Ukrainian Government’s Measures

The Ukrainian government temporarily amended trade laws to allow imported goods into the country at a cost-effective rate in order to combat COVID-19. The legislation is waiving the value-added tax (VAT) which ends up on every imported item entering the country. This will reduce costs for equipment and goods imported, including medical devices, services and vaccines.

Ukraine is also making progress in vaccinating its population. On August 16, 2021, more than 100,000 Ukrainians received vaccinations, bringing the nation’s total of vaccinated citizens to 4.75 million people.

The impact of COVID-19 on poverty in Ukraine has impacted its stability significantly. However, with assistance and domestic cooperation, the nation of Ukraine is fighting back.

– Ali Benzerara
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2021-09-09 08:20:052021-09-13 00:26:00The Impact of COVID-19 on Poverty in Ukraine
Global Poverty, Refugees

MADE51 Empowers Refugee Artisans Globally

Made51 artMADE51 is a global initiative created by the U.N. Refugee Agency (UNHCR) and the World Free Trade Organization to showcase the creative talents and skills of refugees while giving them an opportunity to earn an income by selling their art. MADE51, which stands for Market Access, Design and Empowerment for Refugee Artisans, connects artisans with markets in order to economically empower artisans and help them rise out of poverty. U.N. Deputy High Commissioner for Refugees Kelly Clements states that “Rather than viewing millions of refugees across the globe as a burden, MADE51 sees untapped talent and potential that, if unlocked, can directly benefit” refugees, host countries and local enterprises.

How MADE51 Works

MADE51 gives refugees the opportunity to build sustainable livelihoods by selling “artisanal home decor and accessories.” Sales from MADE51 products allow “refugees to contribute to their host country’s economy” and reinforces their ties with society. Instead of seeing refugees as a burden, MADE51 gives them a platform to showcase their talent.

The initiative connects artisans with local social enterprises in Africa, Asia and the Middle East. According to Herbert Smith Freehills, “International trade in artisan crafts is now valued at over $32 billion per year, with 65% of handicraft exports coming from developing countries.”

MADE51 promotes economic inclusion using an innovative marketing solution. It identifies refugee artisans and gives them a platform to showcase their traditions and skills by helping them form partnerships with local businesses. Then, the initiative brings in its partners’ technical expertise for branding, marketing, capacity building and more.

The UNHCR also conducts assessments to make sure partner businesses follow UNHCR principles and Fair Trade standards. Fair Trade principles ensure that workers receive adequate compensation while working in a safe environment. MADE51 embodies the spirit of the UNHCR’s Global Compact on Refugees.

A lot goes into the success of the MADE51 collection. MADE51 receives help from strategic partners in product design, integrated technology, branding and marketing.

MADE51’s Impact

Other than providing a way for refugees to make a living, the initiative presents an opportunity to show solidarity with refugees. MADE51 “demonstrates the talents that refugees possess and how if given the opportunity, they can become positive contributors to societies and economies.”

MADE51 gives refugees the chance to honor and preserve their heritage and culture through art. Often the only things refugees can take with them when displaced are intangible skills, craftsmanship, knowledge and traditions. The collection shares these skills with the world while allowing refugees to “regain economic independence.” MADE51 is also a way of telling the human story of refugees rebuilding their lives from scratch.

How to Help

As a global collaborative initiative, MADE51 relies on the help of strategic partnerships. It is currently seeking partners in several areas such as retail branding, design and logistics. Individuals can also play a role in uplifting and empowering refugees by supporting the collection. For example, individuals can promote the collection on social media platforms, utilize word-of-mouth marketing and purchase items from the collection. The collection is diverse, containing protective face masks, towels, aprons, laptop sleeves, key chains, travel bags and more.

According to the UNHCR, at the close of 2020, “there were 82.4 million forcibly displaced people in the world.” More than 25% of this population was made up of refugees. MADE51 presents an inspiring tale of the most vulnerable and disadvantaged people using their creative skills to rebuild their lives while simultaneously sharing and preserving their culture.

– Ariel Dowdy
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2021-09-09 07:30:042024-05-30 22:24:57MADE51 Empowers Refugee Artisans Globally
Global Poverty

Digital Access and the Digital Divide

Digital accessDigital access for all is becoming more and more necessary with the growing digital economy. Ecuadorian businesswoman Pierangela Sierra recently became the United Nation’s eTrade for All initiative representative for Latin America and the Caribbean. The program seeks to “expand and promote” the digital economy across middle to low-income countries. Sierra is the founder of Tipti, which is an e-commerce online grocery shopping platform in Ecuador. The platform makes strides for women entrepreneurs around the world as Sierra advocates for their place in the digital workforce. Unfortunately, the growing global digital divide creates barriers to access. People in lower-income countries, especially women, have less access to the online world. Sierra’s advocacy for internet access equality provides much hope for the global digital accessibility movement.

The Digital Divide: A Global Crisis

On February 15, 2021, the United Nations Commission for Social Development discussed the presence of the global digital divide as it applies to the COVID-19 pandemic and global poverty. Members of the Commission noted that while technology has made it possible for numerous countries to overcome educational and economic crises throughout the pandemic, the digital divide has expanded globally.

The U.N. Secretary-General Amina Mohammed states that half the world’s population currently lacks internet access, “the majority of whom are women and mostly in developing countries.” The World Bank reports that only 35% of people in developing countries have access to the internet, indicating that the greatest digital access disparities are seen within rural areas as “these disparities impede shared prosperity and constrain access to pathways out of poverty.”

These disparities can sometimes even impact the speed, and therefore, the accessibility of the internet in different areas. As of 2019, it would take an average of 30 hours, one minute and 40 seconds to download a 5GB movie in Yemen in comparison to the average eight minutes it would take in Taiwan.

Pierangela Sierra and Founding Tipti

The global digital divide has grown throughout the COVID-19 pandemic as those in rural or impoverished areas lack access to the resources the digital world provides. As impoverished communities and women continue to bear the brunt of internet inaccessibility, communities need advocates now more than ever. Sierra and her company Tipti work to debunk myths surrounding digital access and generate change by advocating for greater e-commerce and digital access among low-income populations and women.

After working for a variety of international corporations across Latin America, Sierra founded Tipti in 2016. Tipti is an abbreviation of “Tiempo para ti” or “time for you.” Tipti is an e-commerce grocery shopping and delivery platform designed to save clients time otherwise spent buying groceries in person.

Tipti’s Impact on Women

While 346 million people in Latin America have internet access, only 20% of the population “made online purchases in 2019.” The U.N. reports that there is an overall “lack of trust in postal services” and barriers to online bank account access. Sierra attributes the low level of e-commerce in Latin America to inadequate technology access and a lack of internet education. Sierra emphasizes that “there is a great need for access to education” in low-income areas, especially for women.

As part of the United Nation’s eTrade for All initiative, Sierra will teach a Masterclass “geared toward women who are ready to craft their own business plan for the tech sector.” Furthermore, Sierra aims to mobilize communities in order to create lasting change and significantly reduce the digital divide. As Sierra states in talks with the United Nations, “the moment you lend a woman a helping hand, you are helping up to 20 other people, too.”

The Future for Women in the Digital Workplace

As the digital divide increases worldwide, advocates like Sierra are extremely important. Fortunately, Sierra is not alone in her fight to increase e-commerce access and internet equality. Among various other organizations, the World Bank recently called for global broadband internet access for everyone. Currently, the World Bank is embarking on initiatives surrounding sector policy, loans and grants for broadband access. Individuals like Sierra along with organizations such as the U.N. and the World Bank further the movement to close the global digital divide through their advocacy and educational efforts.

– Lillian Ellis
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-09-09 07:30:032021-09-09 01:00:33Digital Access and the Digital Divide
Global Poverty, USAID

A Closer Look at USAID Assistance to Sudan

USAID Assistance to SudanUnited States Agency for International Development (USAID) assistance to Sudan offers hope to alleviate poverty in the struggling country. Sudan has a population of more than 44 million people, but as of August 2021, approximately 13.4 million Sudanese people require humanitarian aid. Citizens are grappling with conflict, food insecurity, economic crisis and the impact of drought and flooding. The onset of COVID-19 has only exacerbated issues of poverty in the country. Even though there were developmental gains in the past decade, the African country of Sudan is still dealing with widespread poverty, conflict and violence. However, with USAID assistance to Sudan, the country has the potential to make significant strides in reducing poverty.

The Economy of Sudan

The secession of South Sudan in 2011 is a leading cause of many of Sudan’s modern economic struggles. When South Sudan seceded, the most significant economic loss to Sudan was oil revenue. Oil contributed to more than 50% of the Sudanese government’s income and “95% of its exports.” Without oil revenue, the country experienced a lack of economic growth and “consumer price inflation” as well as soaring fuel prices. However, Sudan came to an agreement with South Sudan “to lower oil transit fees” in 2016 in order to address some of these issues.

While oil is still Sudan’s main economic sector, about 78% of the population work in the agricultural sector. However, the agricultural industry in Sudan is highly rain-dependent and very sensitive to “changing weather patterns” that lead to drought and flooding. This volatility can hurt the incomes of the many people whose livelihoods depend on agriculture.

The State of Poverty in Sudan

Sudan faces significant challenges regarding poverty. Sudan has “one of the highest rates of stunting in the region,” with global acute malnutrition impacting about one million children in the country. In addition, roughly 83% of the citizens live in rural areas and 80% of the population survives on less than $1 a day. Furthermore, more than a third of the country experiences food insecurity. The culmination of these factors means, on the Human Development Index, Sudan ranks 170th out of 189 countries. This ranking puts Sudan in the “low human development category,” according to the 2019 Human Development Index.

USAID Assistance to Sudan

“The United States has been the largest donor of humanitarian assistance to the people of Sudan for more than a quarter-century.” USAID assistance to Sudan aims to reduce poverty and provide immediate humanitarian relief. In June 2020, USAID gave Sudan roughly $356 million “to support the democratic transition in the Republic of Sudan following a peaceful revolution in 2019.” Of this funding, $20 million went toward the Sudan Family-Support Program, “a safety net administered by the World Food Programme” to assist Sudanese people “through a difficult period of economic reform needed to end unsustainable state subsidies on wheat and oil.” In addition, some of the funding went toward strengthening the COVID-19 response in Sudan.

More recently, on August 3, 2021, USAID Administrator Samantha Power proclaimed that the agency will provide more than $56 million worth of humanitarian aid to Sudan. The aid looks to increase healthcare resiliency by assisting with “emergency health care,” medical resources and the training of healthcare personnel. Furthermore, the funding will support victims “of gender-based violence by improving case management and training personnel on survivor-centered approaches.” The funding will also increase resources with regard to water and sanitation. Through this assistance, USAID strives to help approximately 13.4 million Sudanese who need humanitarian aid.

Looking Ahead

With the addition of this recent aid, the U.S. asserts its position as the most significant donor to Sudan, providing nearly $377 million worth of aid since the beginning of 2021. U.S aid to Sudan provides support for millions of Sudanese people who deal with food insecurity, lack of clean water and conflict, among other issues. With U.S. aid, Sudan can make strides in the fight against poverty.

– Kyle Har
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey Alexander https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey Alexander2021-09-09 01:30:502024-12-13 17:51:28A Closer Look at USAID Assistance to Sudan
Developing Countries, Global Poverty, Poverty Reduction

How Crowdfunding is Reducing Poverty

crowdfunding is reducing povertyIn 1997, modern-day crowdfunding gained global traction as British rock band Marillion funded their U.S. tour entirely through fan donations. Since then, crowdfunding has transformed into a global market. It is capable of financing aid projects, resource distribution and business ventures. Thus, crowdfunding is reducing poverty in developing countries, as proven around the world.

What is Crowdfunding?

Crowdfunding is a fundraising method performed on the internet. Investors contribute small amounts of capital to finance an idea or aid individuals. Using social media networks, crowdfunding works to draw people’s attention to situations of need. Moreover, it creates an opportunity within which anyone with money can invest.

Crowdfunding is typically performed through loans and donations. The loan system helps businesses that are developing a product or resolving a conflict. In this regard, crowdfunding is reducing poverty by giving investors an incentive to have a stake in a business’s success. Additionally, donations are a way for individuals to raise money after being impacted by natural disasters or medical expenses. In both ways, crowdfunding improves fundraising accessibility on a global scale.

Crowdfunding’s Growing Popularity

Crowdfunding became a popular option for entrepreneurs at the turn of the 21st century. Sites such as Kickstarter and GoFundMe have expanded globally. Revenue increased “from $530 million in 2009 to $1.5 billion in 2011,” contributing to economic growth. Not only does crowdfunding allow individuals to invest in campaigns directly but it also brings attention to causes around the world as a catalyst for poverty reduction.

Market Potential

According to the World Bank, crowdfunding’s popularity is spreading from developed to developing countries. In order to boost profitability, global poverty reduction legislation has created an opportunity for crowdfunding to thrive. Due to advancements in income equality and job growth, there are up to 344 million households that can contribute small investments to crowdfunding platforms. This means that by 2025, nearly $96 billion can be raised just through crowdfunding alone.

Thus, crowdfunding is reducing poverty through its ability to connect people around the world. When observing diaspora remittances, education and housing funding, crowdfunding has the potential to increase capital by 25% more in developing countries. As such, in emerging economies that struggle to provide adequate healthcare, crowdfunding can alleviate some of that pressure.

Crowdfunding and Health

A 2018 study by the British Medical Journal studied poverty in India. The Journal found that 38 million people went into poverty as a result of self-financing healthcare bills. The second wave of COVID-19 hit India hard, and as such, many citizens relied on crowdfunding instead of insurance coverage. Through crowdfunding, nearly $1.6 billion was raised from more than 2.7 million donors. Thus, while developed countries have adopted crowdfunding as a method to support innovative business ideas, the developing world is seeing money channeled into small projects or helping others afford medical bills.

Leading by Example

As crowdfunding has gained popularity, several platforms are working to help those in need. Kiva is a loan-based platform that started in 2005. This website allows people to crowdfund loans that support more than 1.7 billion people who are unable to access essential financial services. Kiva’s work spans 77 countries, funding female-led businesses, youth education and medical expenses. In total, Kiva has supported $1.63 billion worth of loans.

A forerunner for crowdfunding sites in India, Milaap, offers investors the opportunity to contribute donations for causes they are passionate about without incurring any fees. Started in 2010, Milaap’s team has been a pioneer in providing funding to rural areas and small businesses. Now, crowdfunding is reducing poverty in healthcare, making Milaap the go-to platform to raise money for treatments and operations.

Similarly, Transparent Hands is the largest crowdfunding platform in Pakistan, which also assists the health sector. Those who are in extreme poverty can rely on donations made by people around the world to help cover the costs of surgery.

Overall, crowdfunding is an emerging resource that is positively affecting the scope of global poverty. Its potential to provide funding to low-income groups is an important step toward solving inequality.

– Nicole Yaroslavsky
Photo: Flickr

September 9, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Lynsey Alexander https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Lynsey Alexander2021-09-09 01:30:162024-06-07 05:08:15How Crowdfunding is Reducing Poverty
Global Poverty

6 Facts About Higher Education in Brazil

Higher Education in BrazilBrazil has a population of more than 211 million, but only 18% of adults between 25 and 64 years old have acquired an academic degree. Brazil has both private and public (federal, state and municipal) higher education institutions (HEIs) classified into four main categories: universities, colleges, university centers and federal institutes. Universities are the most complex institutions as they incorporate not only regular learning activities but also scientific research and extension programs. As these six facts about higher education in Brazil illustrate, Brazil’s higher education system faces some challenges, but it also demonstrates a great history of success and potential for improvement.

6 Facts About Higher Education in Brazil

  1. Government spending in public higher education in Brazil is low. The spending in public higher education institutions increased by 19% between 2010 and 2016, but spending per student was still below the OECD member countries’ average in 2016. In 2021, a substantial budget cut is threatening federal universities’ operations. The new budget is almost the same as it was 17 years ago when the number of students was half of the current number. The low budget affects the payment of utility expenses and forces the universities to cut financial aid to low-income students and research funding.
  2. Most bachelor’s students attend private higher education institutions. Although federal and state universities in Brazil are tuition-free, more than 75% of students enrolled in bachelor’s degree programs attend private institutions. According to the 2019 census, there were more than 16.4 million admission spots that year, 94.9% at private and only 5.1% at public HEIs. Since 1999, programs, such as FIES (Student Financing Fund), finance tuition fees and allow students to start paying their loans after graduation, facilitating the access of students to private institutions. However, a study on student loan schemes in Brazil found out through simulations that there is an unsustainable repayment burden for many graduates. The study also suggested some possible solutions to the problem, such as “imposing a zero-interest rate whilst students are at higher education and whilst debtors are below the first tax threshold.”
  3. Social quotas facilitate impoverished people’s access to federal universities. In the last 15 years, 28 million people in Brazil transitioned out of poverty, but the system still favors the wealthy: the richest 10% of the population accounted for 61% of economic growth between 2001 and 2015. Business Insider suggests that federal universities’ admission systems favor this small portion of Brazilians who can afford private high schools where they have better opportunities of learning and, consequently, are more likely to succeed in the competitive public universities’ entrance exams. In 2012, President Dilma Rousseff signed a law that requires federal universities to reserve half of their admission spots for public high school graduates. Besides, half of the spots for public high school graduates go to people with a family income of less than or equal to one and a half of the minimum monthly wage per capita. ANDIFES’ surveys show that these people represented 70.2% of the undergraduates in 2018 compared to 44.3% in 1996 when the first survey first occurred.
  4. Racial quotas help to reduce the racial achievement and wealth gap. The law that emerged in 2012 to help public high school graduates and low-income students also guarantees that a percentage of federal universities’ admission spots go to those of African descent and indigenous people. This percentage varies according to their number in each state. Racial quota supporters see this law as an attempt to pay a historical debt with these groups and reduce inequality. Slavery was legal in Brazil until 1888 and left a legacy of profound racial inequality. About 125 years later, individuals of African descent earned “little over half of what white Brazilians did” and represented less than 30% of the country’s job market. In 2019, they represented more than half of higher education students in public institutions for the first time.
  5. Brazil’s public universities play a significant role in science production. Between 2013 and 2018, Brazil ranked 13th in the world in terms of its output of research papers with 280,912 papers added to the Web of Science. Fifteen public universities were responsible to produce more than 60% of this research output. Academic research benefits the world as a reliable source of information and insights that contribute to social improvements, such as the development of new technologies. The importance of university research is even more evident in the context of a pandemic. One example is the case of the Brazilian scientist Jaqueline Goes de Jesus who works at one of Universidade de São Paulo’s institutes and led the sequencing of the genome of a COVID-19 variant. Jaqueline’s accomplishment was all over the news and she even had a Barbie doll modeled after her as a recognition of her work.
  6. Brazil’s higher education institutions have international recognition. Seven of Brazil’s higher education institutions are among the top 10 Latin American universities in the 2021 Times Higher Education (THE) rankings. Universidade de São Paulo, Universidade Federal de Minas Gerais and PUC-Rio are examples of a state, a federal and a private university in the top 10, respectively. Universidade de São Paulo is the oldest university in Brazil, being “responsible for around 20% of all Brazilian academic output.” THE evaluates universities in the Latin American and Caribbean regions within five areas including teaching, research, research citations, international vision and industry investment.

Looking Ahead

Higher education institutions are like gardens in which good ideas flourish when they receive the right amount of nutrition. It is worth noticing that both private and public Brazilian HEIs excel among Latin American institutions. While budget cuts threaten the future of public universities in Brazil, they do not erase their history of research contributions to the global scientific community. Besides, affirmative actions play an important role in the democratization of access to Brazil’s public institutions and impact society as a whole. These six facts about higher education in Brazil give an idea of how much there is to learn about this country’s higher education system, which is both a matter of concern and a valuable source of national pride.

– Iasmine Oliveira
Photo: Flickr

September 8, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2021-09-08 13:44:552024-05-30 22:25:036 Facts About Higher Education in Brazil
Global Health, Global Poverty, Technology, World Hunger

3 Ways the U.S. Could End Global Poverty by 2030

End Global Poverty by 2030In 2015, the United Nations (UN) created the Sustainable Development Goals, a group of 17 goals that aimed to create an equal and prosperous society. Many of the goals are centered around ending discrimination, providing quality education to all, and other measures to improve equality. However, the most important goal out of the 17 developed is to end global poverty by 2030, which would significantly impact the lives of billions around the world. With America having the strongest economy in the world, even during the pandemic, the U.S. has many ways to reach this goal and finally end global poverty.

Provide Natural Resources

Currently, the U.S. holds the greatest amount of natural resources in the world, especially oil and natural gas. These resources are extremely important to help those in other countries. For instance, in countries without access to electricity, life expectancies are 20 years shorter. Electricity is necessary to provide better education, improve food supplies, upgrade healthcare and so much more. Thus, by improving electricity, America can provide the resources necessary for families to survive and potentially end global poverty by 2030.

Similarly, while electricity is essential to uplift people in developing countries, it also provides profits to America itself. The most important of these benefits is that when the U.S. exports more energy, allied countries have to rely less on authoritarian countries such as Russia and China. This helps reduce prices for these countries to purchase energy and improves confidence in the energy supply. For America, it means that trade will boost the economy and will invest in American citizens.

Improve COVID Aid

In countries across the globe, COVID has been surging due to a lack of vaccines. In fact, in Africa, the number of cases rose by 39% in June 2021. Similarly, at least 20 countries in Africa have experienced a third wave of infections. Nevertheless, wealthier nations have only promised to deliver vaccines to Africa by 2023, prolonging the spread of COVID throughout the continent.

While the U.S. has tried to stop the spread of COVID-19 in Africa, they failed in 2020 to meet the requirements for a sustainable recovery. For example, out of the $9.5 billion that the U.S. was required to contribute as part of a 2020 COVID global response, they only contributed $3.8 billion. In fact, in countries like Bangladesh and the Philippines, the U.S. only contributed 27.2% of the necessary funds.

However, in 2021, America has made many improvements to its foreign policy to aid countries in fighting COVID. The most significant of these is the $11 billion of foreign aid issued as part of the American Rescue Plan in March 2021. Furthermore, the U.S. has provided over $2 billion to COVAX, an organization that provides COVID vaccines to 92 low-income countries. With the vaccines helping potentially millions of people, the U.S. is aiding these countries to exit the current pandemic-induced recession. Although this effort likely won’t be able to end global poverty, America is providing a strong foundation for families in low-income countries.

Help Children in Poverty

Even though billions of adults live in poverty, children are twice as likely to live in poverty. Over 1 billion children worldwide are multidimensionally poor, meaning that they have no access to education, nutrition, housing, water, and more. Children who experience multidimensional poverty die at twice the rate of their peers from wealthier families.

To address this, the United States needs to recognize the flaws currently in place with regards to aiding children. For instance, only 2.6% of humanitarian funds go to education, stifling 128 million children from going to school and having the necessary abilities to succeed in the future. Financial contributions by the U.S. could help millions achieve a quality education. With better education, these students will have the resources to economically support themselves and ultimately lift themselves out of poverty.

While economic problems continue to persist, especially during the pandemic, the U.S. can help millions of families. If the U.S. uses its economic might, it could finally remove burdens for families and end global poverty.

– Calvin Franke
Photo: Pixabay

September 8, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-09-08 08:12:532021-09-20 00:53:473 Ways the U.S. Could End Global Poverty by 2030
Global Poverty, Poverty Reduction

5 Ways Bees Reduce Poverty

Bees Reduce PovertyBees are an essential part of global agricultural systems. Additionally, bees reduce poverty around the world as they are responsible for pollinating 80% of the world’s plant species, including 90 different types of crops.

Study by the FAO

The Food and Agriculture Organization of the United Nations (FAO) studied 344 plots of land in parts of Africa, Latin America and Asia. The plots revealed a positive correlation between the number of bees that visited a particular plot of land and its agricultural productivity. For small farms with a landmass of fewer than two hectares, the study concluded that farmers could increase their crop production by an average of 24% by increasing pollinator traffic.

The results of the FAO study could affect approximately two billion farmers worldwide. Because of their importance to agricultural production, increasing the number of bees on agrarian lands could improve global food security. Bees also provide a valuable way to reduce rates of poverty. Bees can be especially valuable to people living in rural poverty, a very important issue to address as approximately 63% of people in poverty worldwide live in rural areas.

5 Ways Bees Reduce Poverty

  1. Beekeeping helps households increase their income. Rural families living in regions with poor agricultural yields may struggle to make ends meet. However, raising bees can help these families earn more money. In addition to potentially increasing their annual crop production, bees produce honey and beeswax which families can sell. For example, Bees Abroad and the Poverty Abroad for the Poor Initiative taught farmers living in extreme poverty how to run bee farms. As a result of this training, 30 of those farmers went on to run their own bee farms afterward, which helped increase their incomes.
  2. Beekeeping creates opportunities for entrepreneurship. Entrepreneurs use bee by-products to make commodities such as shoe polish, candles and ointments. More importantly, beekeeping presents opportunities for entrepreneurship, which helps people escape poverty and support themselves and their families. Entrepreneurs are finding ways they can use bees to reduce poverty and improve living conditions.
  3. Food insecurity and poverty are linked. Poverty is the main driving factor behind food insecurity worldwide. Across the world, roughly 80% of chronically undernourished people live in rural areas of developing countries, making food insecurity a particularly important aspect of ending rural poverty. Increasing bee populations can enhance food security by increasing crop yields. By improving food security, bees reduce poverty in a way that is especially beneficial to rural communities.
  4. Beekeeping is an effective form of occupational therapy. Occupational therapy helps people with disabilities accomplish goals such as working and attending school. People with disabilities are disproportionately affected by poverty, which makes addressing their needs critical to reducing poverty. Additionally, inaccessible work and education opportunities are major contributing factors to this problem, which occupational therapy can help address. Fortunately, beekeeping requires little capital and helps occupational therapy participants become financially independent, making it an effective form of occupational therapy.
  5. Protecting the global environment keeps people out of poverty. Environmental degradation can increase levels of poverty. For example, the loss of natural resources to environmental degradation leaves communities with fewer means to support themselves. However, bees are critical pollinators that support ecosystems and natural resources across the globe. Additionally, bees can even improve habitat restoration efforts. So, by preserving and restoring vital resources, bees reduce poverty.

Overall, bees provide unique benefits that have the potential to reduce global poverty. By garnering the help of pollinators, impoverished communities can rise out of poverty.

– Caroline Kuntzman
Photo: Flickr

September 8, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Yuki https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Yuki2021-09-08 07:30:572024-05-30 22:25:015 Ways Bees Reduce Poverty
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