COVID-19 has economically impacted countries worldwide, particularly low-to-middle-income nations. One such nation is Nigeria. The impact of COVID-19 on poverty in Nigeria has been especially disastrous. Nigeria is the most populous and has the largest economy in Africa. Because of this, the downturn in Nigeria’s economy, as a result of COVID-19, affected a significant number of people and worsened the poverty level in Nigeria.
Nigeria Before COVID-19
Although its economy was steadily improving before COVID-19, Nigeria already had high levels of poverty and inequality. In 2018, about half the population (87 million people) lived on less than $1.90 a day. Most of the nation’s poor live in rural areas and have markedly less access to clean water than those in urban environments.
Prior to the COVID-19 pandemic, the Nigerian economy showed consistent growth, with the per capita GDP doubling from $1,400 per person to $2,800 per person between 2000 and 2012. However, Nigeria’s high poverty rate did not reflect this economic growth because the growth fell behind population growth.
The status of women in Nigeria was also less than ideal in 2018. Nigeria has an extremely high maternal mortality rate: 512 women per 100,000 die in pregnancy or the year following from causes related to the pregnancy. By comparison, the maternal mortality rate in the United States in 2018 was 17.4 per 100,000.
What Makes Nigeria So Vulnerable?
Oil makes up about 90% of Nigeria’s exports and 50% of its government revenue. This lack of diversity makes Nigeria especially vulnerable. The drop in oil prices during the pandemic damaged Nigeria’s economy and harmed government revenue at a time when it was especially needed to fight COVID-19. The World Bank predicts that this could result in Nigeria’s worst recession in four decades. The Nigerian economy’s dependence on oil exports accounts for much of its loss during COVID-19, as does foreign investors’ aversion to what they perceive as risky investments in the Nigerian economy. Inequality and lack of employment opportunities also made Nigeria vulnerable to COVID-19’s negative influence on its economy. Its already susceptible position aggravated the impact of COVID-19 on poverty in Nigeria.
As recently as 2016, Nigeria had a recession. After 25 years of growth, Nigeria’s economy contracted due to lower oil prices. Prior to the 2016 recession, Nigeria’s economy was growing very quickly at 6.3%. Since then, it has fallen to around 2.2%. However, until 2020, economic growth remained positive. Nigeria was less prepared for COVID-19 than it was for the 2016 recession; the pre-COVID economy was less healthy than the pre-recession economy. Interest rates and the deficit were higher and the excess crude account was not sufficient to cover the needs of the people or allay the impact of COVID-19 on poverty in Nigeria.
How Did Nigeria Respond to COVID-19?
Although Nigeria has a large and growing population, it can only test around 1,500 people a day for COVID-19. The healthcare system cannot meet the needs of the people, with only 20 frontline healthcare workers per 100,000 people. Over a year into the COVID-19 pandemic, some still consider Nigeria’s testing capacity “inefficient and insufficient.”
On March 30, 2020, President Mahummadu Buhari declared a lockdown for Lagos and Ogun states. The government eased this lockdown in early May 2020 due to the economic toll it was taking on the country. In an attempt to mitigate the impact of COVID-19 on poverty in Nigeria, Buhari launched several fiscal and stimulus measures. These included money transfers for the poorest and vulnerable, employment programs and a credit facility for healthcare providers and manufacturers.
Money Transfers and Loans
The money transfer program focused primarily on the urban poor, giving 10 billion nairas directly to two billion households as a means to lift them from poverty and improve the local economy. Nigeria’s employment program focuses primarily on unemployment and getting Nigerians into any jobs available. This largely overlooked the underemployment plaguing young, educated Nigerians.
The credit facility extends loans at a limit of 20% of the company’s three-year average turnover with interest rates of 5% to 9% annually, with the intention of stimulating and supporting local production of medical supplies, reducing healthcare tourism by Nigerians and building healthcare infrastructure. The credit covers the production of drugs, medical equipment and technology. The Central Bank of Nigeria determines the expansion and establishment of healthcare service facilities, supplying healthcare services and necessities and other activities.
Unfortunately, Nigeria, like other African nations, went on to face a second wave of COVID-19 and has just introduced more protocols to prevent a third wave. This includes massive travel restrictions, increased testing and quarantine and isolation protocols.
NGOs Working in Nigeria During COVID-19
The Consultative Group for International Agricultural Research (CGIAR), a global partnership uniting organizations dedicated to researching food insecurity, has been actively involved in aiding Nigeria during the COVID-19 pandemic. Specifically, in cooperation with the Nigerian government, it has begun distributing seeds to farmers across Nigeria. CGIAR conducted surveys to ascertain the effect of COVID-19 on supply chains, compiling the data in an interactive database. CGIAR scientists also created a crowdsourcing tool to collect real-time Nigerian local price data, revealing threats to food security.
The Good News
Nigeria implemented lockdowns relatively early compared to other African nations and targeted its lockdowns, completely exempting some essential services, such as farming, power and water supply systems and manufacturing. This lessened the impact on food systems and may have lessened the impact of COVID-19 on poverty in Nigeria.
Post-pandemic, Nigeria may take the opportunity to diversify its economy, discourage inequality and improve its healthcare systems. Having learned from COVID-19 about the vulnerability of oil, costs of inequality and poorly prepared healthcare systems, they may become better and stronger as a country.
– Hilary Brown
Photo: Flickr
The Johannesburg Zero-Waste Grocery Bus
From Idea to Bus
The idea of a mobile grocery store was imagined by founder Ilka Stein and her team at the social enterprise ForReal. Starting in 2020, Stein and the 12 young volunteers of the ForReal team transformed an old bus into a mobile grocery store in just three months. Inside the “skhaftin bus,” metal containers are filled with dry foods, such as lentils, black beans, oats, samp, spices and brown sugar. The concept of the skhaftin bus is to bring your own “skhaftin,” a South African slang word for “lunchbox,” and fill it with the items you need. In addition to dry foods, the Johannesburg zero-waste grocery bus has paired up with Bertrams Inner City Farm to provide fresh local produce, bread, juices and sauces. Stein believes that this bus will provide many locals with access to nutritious food in an affordable and eco-friendly way.
Fill Up with Food
The Johannesburg zero-waste grocery bus plans on operating three days a week. During these three days, customers can come to the bus to pick up needed food. Procedurally, the inner-city residents bring their skhaftin and enter the front of the bus, spoon out dry goods from metal containers, pick up desired produce and finally head to the register. At the register, the customer pays according to the weight of the skhaftin and leaves through the back of the bus. Not only is it a quick food store, but it is also an environmentally conscious store.
Customers bring their own containers, which promote a plastic-free shopping experience. Additionally, the products are placed in metal tins to avoid the unnecessary use of plastic. The concept of fill-it-yourself versus pre-packaged amounts saves people from overbuying and eliminates food waste. These features aid in helping the planet as well as the poor. By eliminating excess packaging, Stein doesn’t have to pay the extra costs incurred from packaging and can lower the overall price of the skhaftin. Further, the take-what-you-need model saves the customers from paying for food that will just go to waste.
Money Matters
The affordable prices definitely draw people to the Johannesburg zero-waste grocery bus. Shoppers find they can typically get more food for less money when buying from the bus versus the local grocery store. This has been a major source of relief for those unable to find a job, especially during COVID-19 and its consequential high unemployment rates.
The Johannesburg zero-waste grocery bus provides job opportunities in addition to providing affordable food to combat poverty. Currently, Stein employs three young people from the local area to work on the bus. Stein also ensures that the bus is mindful of the surrounding businesses. The team continues to test out new parking locations so as not to interfere with local shops. The bus aims to aid the local community fight against poverty in a contentious way.
Rolling Into the Future
The Johannesburg zero-waste grocery bus plans to keep its valuable service going even when COVID-19 is no longer part of the picture. Overall, this mobile grocery store is proving to be extremely beneficial to people of inner-city Johannesburg. The food is inexpensive, nutritious, unprocessed and free from single-use plastics. Ilka Stein and her team are actively helping alleviate poverty in South Africa, one lunchbox at a time.
– Lucy Gentry
Photo: Flickr
5 Organizations Helping India During COVID-19
The COVID-19 crisis in India has increased tremendously over the past few months, with few signs of decline. With more than 21 million people infected, hospitals are being overrun and are forced to turn the infected away. In addition, mass supplies of oxygen are running short. However, some organizations are helping people through to the other end of this crisis. Here are five organizations helping India during COVID-19. These organizations provide food, oxygen, medical supplies and personal protection equipment (PPE) to those in need.
5 Organizations Helping India During COVID-19
Moving Forward
These five organizations helping India during COVID-19 are ensuring millions find relief during this ongoing crisis. Without continued support, COVID-19 cases in the country will likely continue to rise. Moving forward, it is imperative that more organizations step up and provide aid to those in need.
– Simran Pasricha
Photo: Flickr
How a Memoir Shows Kenya’s Richness and Poverty
Ngũgĩ wa Thiong’o is a writer and academic from Kenya. His story shows the poverty and richness of the world in his childhood memoir “Dreams in a Time of War.” He begins the book about the escape that the act of reading provided him, how it metaphorically satiated his appetite when food was scarce. From his humble beginnings to his role as a human rights activist, scholar and writer, Thiong’o’s life charts a remarkable story that one must dissect to believe. Thiong’o’s story and work illuminate Kenya’s richness and poverty.
About Kenya
Colonizers named the country after Mount Kenya, Africa’s second-largest mountain. Colonized by Europe (like many African states), it is home to over 40 million people. Tanzania, Uganda, Somalia, Ethiopia and South Sudan border it and it boasts the third-largest economy in sub-Saharan Africa.
Although it has experienced poverty reduction over the past many years, around 38% of Kenya still lives in poverty, according to 2019 statistics. “The urban poverty rate remained statistically unchanged, and in fact, the absolute number of urban poor increased from 2.3 million to 3.8 million due to high population growth.” The Kenya of Thiong’o’s youth included war, political fodder and burgeoning national independence. The country first experienced WWII, and then the Mau Mau uprising, a war between the British and the Kenya Land and Freedom Army. The story of his education turned out to be emblematic of Kenya’s richness and poverty.
About Thiong’o
He was one of 24 children of his father and four wives. His childhood is an eye-opening blend of scarcity and wonder. Books and literature fed him but he lacked further knowledge. This, he found in his dreams and travels. In England, he studied at the University of Leeds and published his first two novels, “Weep Not, Child” and “The River Between.”
Soon after, Thiong’o had a transformative experience deconstructing the effects of colonization in his country. He began criticizing government interference in university settings and the English department’s lack of cultural relativism. His sustained denunciation of cultural and political matters in Kenya became the reason for his imprisonment under the Public Security Act. This was “for his involvement with a communal theater in his home village.”
Upon his release, he and his family went into exile. They spent the next two decades raising awareness of both indigenous African literature and the political situation in Africa. He went on to teach at Bayreuth, Yale, NYU and UC Irvine. He highlighted Kenya’s richness and poverty on a scholarly and literary level.
His Memoir
After more than 40 years of writing novels and plays, Thiong’o released what he termed a childhood memoir. “Dreams in a Time of War” chronicles both his youth and that of Kenya’s struggle for independence, legitimacy and homeostasis. In his book, he muses about his academic journey, which took him from Kamiriithu to London and the United States and back again.
It details his first train journey, first doting mentor and future dreams. Throughout the 250-page work, one comes to understand a mechanism of Kenya’s richness and poverty; there exists an intuitive work ethic melded with colonial history both of which fight against indigenous culture. Colonization left as a legacy, without proper dismantling of systems of oppression, leaves the hope for serious autonomy of people and culture difficult to maintain.
“Dreams” narrates the devastation of war and the tediousness of colonial bureaucracy. It follows a child on the outskirts of Nairobi enduring poverty. The child finds inspiration to travel to school, educate himself and dream of a life constructed from literature. The transformative effects of the stories he lived and read are similar to the story that his life tells, a circuitous and tireless hero’s journey that is as tragic in parts as it is magnificent in its whole.
Sharing His Story
The book represents a snapshot of a very difficult reality masked by childish wonder. If one wants to understand how a child might react to an environment of colonialism, Ngũgĩ wa Thiong’o’s memoir is the place to begin. The George Padmore Institute has archived The Committee for the Release of Political Prisoners in Kenya, of which Thiong’o was an active participant for many years and whose goal was to highlight injustices against citizens, including Thiong’o.
Kenya is a country firmly entrenched in the African economy, thus experiencing triumphs and struggles. Thiong’o’s memoir can teach the world about Kenya’s richness and poverty. It tells the story of a person living in extreme poverty who refuses to concede the human right to dream. It is in this paradox that the book proves transcendent.
– Spencer Daniels
Photo: Flickr
Vietnam Rice Farming App To Protect Against Poverty
Rice and Salt Water
Vietnam is one of the world’s biggest rice producers. These rice farmers depend on certain environmental conditions to take place in order to produce their influential yield. If natural variables are out of alignment, an entire season’s crop can go to waste. Without a successful crop, the livelihood of farmers is put at risk and they can easily slip into poverty. Thankfully, a Vietnam rice farming app was designed to keep rice farmers aware of precisely how their paddies are doing.
The smartphone app is helpful for farmers all across Vietnam, including in the Mekong Delta. The Mekong Delta is a vast expanse in the southern part of Vietnam where the majority of the country’s farming and fishing occurs. The pronounced wet and dry seasons affect the delta greatly since it’s a very low-lying area. During the wet season, there is plenty of fresh rainwater that fills the rivers. In the dry season, rivers are not filled with rainwater, so seawater laden with salt flows into them. A high saltwater content in rice fields can make the roots of the rice inefficient at absorbing water and can kill the plant. Regulating the salt content is a crucial aspect of being a rice paddy farmer. The Vietnam rice farming app aims to help local farmers monitor salt levels among its various other features to protect farms.
Impact of the App
Technology is offering a simple solution to the problem. The Vietnamese government, in conjunction with the International Fund for Agricultural Development (IFAD), launched a mobile app that provides farmers with information about the state of water in their rice paddies. This Vietnam rice farming app reports data collected by various sensors placed on farms across the Mekong Delta to each app user.
This Vietnam rice farming app gets information to the farmers quickly, which helps the farmers to make the necessary changes before it’s too late. Farmers can easily check the app for updates on the water quality in their rice paddies, such as the water’s salinity, pH, alkalinity and tidal water levels. This information helps farmers to prevent their crops from going to waste. For example, when the app reports salinity being too high, farmers know they must pump fresh water into the fields.
Before this mobile app, farmers were only getting one out of the usual three harvests annually. During a salinity wave, 300,000 hectares of rice fields were lost. But due to the implementation of the sensors and tracking abilities, the next salinity wave brought only 21,000 hectares of damage. This Vietnam rice farming app is protecting farmers from the costly reality of a ruined crop.
Of Poverty and Rice
The Vietnam rice farming app has a broad impact. About half of Vietnam’s 47 million labor force workers engage in agriculture and a poor harvest could prove detrimental to many Vietnamese people. Many in Vietnam don’t have savings and live a subsistence lifestyle, which can make any financial blow very serious. This is particularly true for the nearly 70% of the country lives in rural areas where poverty is especially concerning. The rate of rural poverty is around three times the urban poverty rate. By reducing the variables and uncertainty in the farming process with an app, Vietnamese farmers can feel empowered and less threatened about falling into extreme poverty. Utilizing this technology in agricultural practices can help save the rice paddies and protect against poverty in Vietnam.
– Lucy Gentry
Photo: Flickr
Improving Healthcare in Cambodia
Healthcare in Cambodia has undergone numerous changes in the past century. Cambodia was possessed by France, which provided minimal and basic healthcare for Cambodian citizens. However, Cambodia received its independence from France in 1953. Soon after, the country became heavily involved in the Vietnam War until 1991 and then faced political turmoil. In 1997, the Cambodian People’s Party staged a coup and gained control of the government. This party still holds power in Cambodia and maintains political stability. These numerous government changes have impacted healthcare management and policies.
High Infant and Child Mortality
Cambodia has incredibly high rates of infant and child mortality in comparison to other countries. Mortality rates in Cambodia are among the highest worldwide, with 12% mortality for children under the age of one and 20% mortality for children aged one to five. Consequently, families are more inclined to have multiple children, as seen in other countries with high infant mortality. This decreases the overall quality of healthcare, among other issues. Between 40% and 50% of Cambodia’s population is below the age of 15. While these numbers are decreasing, they are still not at the level required to maximize the current healthcare system’s impact.
Lack of Access and Space
Another severe issue that affects Cambodian healthcare is disease and illness. Diseases arise from a lack of clean, running water as well as poor sanitation. Furthermore, much of Cambodia’s population lives in decentralized villages away from larger hospital systems and medical equipment. Lack of transportation and proximity hinder an individual’s ability to afford and access healthcare.
Moreover, the current healthcare system is not adequate to treat the numerous patients in Cambodia. Many hospitals turn away patients, citing a shortage of resources and beds. In fact, during the Stung Treng dengue fever outbreak, the Cambodian Red Cross had to assemble a makeshift hospital. The organization set up beds for patients, as the present hospitals and clinics simply could not accommodate more patients. This deficit is especially threatening in a country where access to clean water and sanitation services is not guaranteed.
Cambodia also has had many cases of malaria, as is typical of countries located in Southeast Asia. There is always a chance for spikes in malaria cases. Operating at full capacity on a normal basis makes it nearly impossible to handle spikes when they occur.
Improving Health
Emphasis on illness prevention, rather than just treatment, will help improve healthcare in Cambodia. The Cambodian government must identify resources that have been successful in improving healthcare systems and lowering mortality rates in other countries.
Additionally, the amount that the Cambodian government has been spending on healthcare has decreased from 7.2% in 2013 to 6.6% in 2019. Healthcare funding should increase, specifically in preventive medicine and care. Rather than viewing these funds as a permanent spending increase, the government should see that the investment into healthcare will eventually lead to lowered costs as overall health in Cambodia improves. The country has already made large strides over the past few decades. As more individuals gain better healthcare treatment necessary for a healthy lifestyle, the overall state of living in Cambodia will also improve.
Coordinating NGOs
An NGO that is making significant improvements in healthcare in Cambodia is the Health Action Coordinating Committee (HACC). This organization focuses on addressing healthcare issues primarily by coordinating NGO activity in Cambodia in order to create the best system of resources, information and services available.
HACC has worked on enhancing healthcare since 1995, after noticing the lack of NGO coordination in the healthcare field. Now, the nonprofit is able to connect with other organizations to focus on community empowerment, advocacy and networking to improve healthcare systems. So far, HACC Cambodia has brought together 78 nonprofit organizations and has succeeded in providing a platform for these organizations to unite and advocate for common goals through different training, symposiums and other conferences.
Healthcare in Cambodia has gone through many changes over the past few decades and it is moving in the right direction; however, there is still a long way to go. The country suffers from illnesses and diseases that result in high infant and child mortality, and the healthcare system is still not able to take care of an aging population. In order to address this, the government must make healthcare a priority and collaborate with NGOs, such as HACC, to provide better healthcare in Cambodia.
– Manasi Singh
Photo: Flickr
China’s Economic Status in 2021
China is part of Southeast Asia and the third-largest country in the world. In 2020, China’s economic status declined due to the COVID-19 pandemic as businesses shut down and a halt on exports resulted in a loss of $2.1 trillion. However, as of 2021, the country is gradually recovering from the impact of COVID-19.
Why China is Growing so Fast
The Central Economic Work Conference (CEWC) had initially estimated a 6% growth for China in 2021. However, in 2021 so far, China has jumped to an astonishing 9% GDP growth. This increase is due to COVID-19 vaccine distribution throughout the country, which has encouraged China’s president and government to reopen businesses. China’s leaders are also working to provide more goods and services, control carbon emissions and advertise the positives of reform. Retail sales have increased 34% due to the country lifting its restrictions.
Climate and Pollution Control
China took inspiration from California on how to reduce carbon emissions. California had a six-year plan to reduce carbon in the atmosphere. Ever since the U.S. withdrew from the Paris climate accord, China has taken the lead in guiding itself and the rest of the world in reducing climate change. In 2018, China’s Five Year Plan brought attention to the carbon market. Essentially, reducing carbon also reduces pollution and health conditions.
In China alone, pollution kills 1.6 million a year. Yet as of February 1, 2021, China’s carbon market policy officially emerged in an effort to reduce carbon in the country. Moving away from industrialization and providing a more significant focus on energy consumption could potentially provide future generations with a higher expectancy. Although it will take time to reduce carbon dioxide emissions due to China’s many coal-dependent companies, the country is already setting plans in motion to replace coal with solar power and windmills. The country hopes to achieve these goals by 2030.
Technology
Competition between the U.S. and China involving developing technologies has existed for decades. In highlighting potential on educational and technological advances, China has a chance of becoming one of the world’s most advanced countries. China has chosen to focus on basic research to lead to a higher percentage of research and development. Between 2021 and 2025, China hopes to create laboratories that focus on various categories such as biomedicine and energy efficiency.
Looking Ahead
By implementing these plans, China is on the road to recovery from the COVID-19 pandemic as vaccines make way for much-needed economic improvement. Moreover, funding for education, technology and businesses will keep China out of dept as it continues to rise as a world power. As trade opens back up, China will guide other countries in keeping their economies relatively successful, hopefully leading to a reduction in health issues and global poverty.
– Selena Soto
Photo: Flickr
Fighting Gender Inequality in Taiwan With Digital Media
Gender Inequality in Taiwan
Historically, women in Taiwan were taught that they must obey their fathers, husbands and sons and depend on men. This traditional view incited women to form organizations that promoted gender equality. After World War II, the “Civil Code of the Republic of China” was applied to Taiwan. This code gave women the right to work, participate in politics and vote. Unfortunately, the gender pay gap remains an issue. In 2016, female workers in Taiwan made 14.6% less than their male co-workers.
The country has made progress, however. Today, Taiwan’s government has taken pride in increasing gender equality with a female head of state, President Tsai Ing-wen. Additionally, in the 2016 election, women made up 38% of the lawmakers voted into government positions. Voting in a significant percentage of female lawmakers opens opportunities for the Taiwanese government to fight against gender-based violence and discrimination. Some other ways to decrease gender inequality in Taiwan include supporting working mothers, establishing equal worker rights and offering fair access to education, business training and loans.
How Media Empowers Women
“Digital Media: Empowerment and Equality” is a study on how digital platforms empower female users and reduce gender inequality in Taiwan. The research discovered that digital technology gives women the power to spread awareness, as well as market and network. While the platforms offer opportunities, women would benefit even more if they have access to education to help them be successful on social media. For example, the Taiwan Women Up program has helped middle-aged and older women learn information and communication technology to support their organizations and empower themselves.
Furthermore, social media has the power to increase female empowerment through political involvement. Hashtag activism gives women the ability to make a public issue a global issue and pressure lawmakers. Social media also offers a platform for gendered violence stories and holds communities in multiple countries accountable for gender equality. Unfortunately, women sometimes have barriers to using this powerful tool, including limited access to technology, language barriers and censorship.
Need For Digital Education
Accenture found that digital fluency helps countries grow closer to equality in the workplace. The Digital Fluency Model reveals that countries with better digital fluency rates among women have higher rates of gender equality in the workplace. Women with better digital fluency also have more employment opportunities and flexibility. They can work from home and use technology to access more job opportunities.
Achieving gender equality is a challenge around the world, but Taiwan’s efforts to close the gap between men and women push the country in the right direction while adapting to the digital world.
– Nyelah Mitchell
Photo: Flickr
US to Distribute 25 Million Surplus Vaccines Abroad
The Fight Toward Ending Vaccine Inequity
A large majority (about 75%) of the initial 25 million vaccines distributed abroad will be administered through the international vaccine initiative referred to as COVAX. The initiative’s priority is addressing vaccine equity by helping lower-income countries secure vaccines despite limited monetary capacity. Remarkably, as of early June 2021, only 31 million Africans “have received at least one dose” on a continent that measures a population of about 1.3 billion people. Resources have proven extremely scarce, with countries like Ghana and Rwanda already running through their first shipments of vaccines delivered through COVAX.
A mere 1,386 Kenyans out of a 50 million person population have received two doses of a vaccine — a glaring testament to the vaccine inequity found throughout the global south. Apart from a lack of material resources, many countries have seen vaccine hesitancy negatively impact their vaccination rates. Concerns over blood clots and doubts surrounding inoculation capacity have greatly diminished the efficiency of vaccine distribution in countries like Malawi and the Democratic Republic of Congo. Distributing 25 million vaccines abroad will partially cushion already weak healthcare systems with limited beds, ventilators and oxygen.
The Road Ahead
Though U.S. efforts to donate vaccines abroad are significantly helpful, to properly address vaccine inequity, larger-scale efforts are necessary. Researchers from Duke University estimate 11 billion doses will be required to vaccinate 70% of the world’s population. However, this is just the beginning of the long and calculated global response to COVID-19. Jeffrey Zients, the COVID-19 response coordinator for the Biden administration, has said to “expect a regular cadence of shipments around the world across the next several weeks.”
The U.S. will hopefully continue to embrace its responsibility as a world leader and facilitate even greater donations of vaccines abroad. In the end, quelling the pandemic will require “working with allies and partners to expand the production of vaccines and raw materials, including here at home,” said Jake Sullivan, President Biden’s national security adviser. As the world takes on the next chapter in the fight against COVID-19, the leaders of the world must stand together to form a strong, collaborative response.
– Conor Green
Photo: Flickr
The Benefits of Cryptocurrency in Nigeria
Boosting Supplemental Income
The 2016 recession caused a significant strain on Nigeria’s economy and the country is still struggling to recover. In the second quarter of 2020, the country reported a 27.1% growth in unemployment. Average incomes have been declining for six years straight and experts predict there will be less than a 2% rise in income during 2021. The value of the country’s national currency, the naira, fell by 24% in 2020. This economic downturn caused some Nigerians to seek supplemental income.
A 2020 survey indicates that 32% of Nigerians participate in buying and trading cryptocurrency. In 2020, Nigeria accounted for $400 million worth of cryptocurrency transactions, ranking it third globally in trading volume. Cryptocurrency in Nigeria has so far positively enriched the lives of impoverished citizens. For example, a Nigerian cryptocurrency investor, Tola Fadugbagbe, credits cryptocurrency for lifting him out of poverty. Initially struggling to survive on minimum wage odd jobs, Fadugbagbe now earns enough money from cryptocurrency trading to build his own house and purchase a farm.
Ease of Banking
Approximately 60 million Nigerians do not possess a bank account. People who do have bank accounts can only withdraw less than the equivalent of $100 due to local bank restrictions. The hurdles have led to a shift toward mobile banking and cryptocurrency investments. In 2017, reports showed that 71% of Nigerians use mobile phones for communication and internet access. Mobile platforms, including Xend Finance, allow Nigerians to transform their funds into cryptocurrencies. One cryptocurrency that has become popular is stablecoin, which has minimal transaction fees. Stablecoins provide the added benefit of protecting funds from devaluation.
Providing Educational Opportunities
Cryptocurrency in Nigeria is also bringing about educational opportunities. In September 2020, the #BuiltWithBitcoin campaign, led by the bitcoin marketplace Paxful, began construction of a new school in the Nigerian area of Sanga. Paxful is a cryptocurrency exchange platform that operates on a peer-to-peer basis. Nigerians use the platform to make nearly 1.1 million monthly blockchain transactions.
The new school expects to serve 100 to 120 children from ages 3-6. During the evenings, it will function as an adult education facility. Additionally, features of the school will include a water well and solar power. The water from the well can also be sold to the community at a low cost. Paxful will cover all costs needed to run the school such as school uniforms, educational resources and salaries.
The upsurge in cryptocurrency transactions has had a profound effect on many Nigerians seeking a way out of poverty. Nigerians are capitalizing on the educational opportunities and supplemental income cryptocurrency brings. The unexpected benefits of cryptocurrency in Nigeria bring hope to citizens living in poverty.
– Tiara Tyson
Photo: Flickr
The Impact of COVID-19 On Poverty In Nigeria
Nigeria Before COVID-19
Although its economy was steadily improving before COVID-19, Nigeria already had high levels of poverty and inequality. In 2018, about half the population (87 million people) lived on less than $1.90 a day. Most of the nation’s poor live in rural areas and have markedly less access to clean water than those in urban environments.
Prior to the COVID-19 pandemic, the Nigerian economy showed consistent growth, with the per capita GDP doubling from $1,400 per person to $2,800 per person between 2000 and 2012. However, Nigeria’s high poverty rate did not reflect this economic growth because the growth fell behind population growth.
The status of women in Nigeria was also less than ideal in 2018. Nigeria has an extremely high maternal mortality rate: 512 women per 100,000 die in pregnancy or the year following from causes related to the pregnancy. By comparison, the maternal mortality rate in the United States in 2018 was 17.4 per 100,000.
What Makes Nigeria So Vulnerable?
Oil makes up about 90% of Nigeria’s exports and 50% of its government revenue. This lack of diversity makes Nigeria especially vulnerable. The drop in oil prices during the pandemic damaged Nigeria’s economy and harmed government revenue at a time when it was especially needed to fight COVID-19. The World Bank predicts that this could result in Nigeria’s worst recession in four decades. The Nigerian economy’s dependence on oil exports accounts for much of its loss during COVID-19, as does foreign investors’ aversion to what they perceive as risky investments in the Nigerian economy. Inequality and lack of employment opportunities also made Nigeria vulnerable to COVID-19’s negative influence on its economy. Its already susceptible position aggravated the impact of COVID-19 on poverty in Nigeria.
As recently as 2016, Nigeria had a recession. After 25 years of growth, Nigeria’s economy contracted due to lower oil prices. Prior to the 2016 recession, Nigeria’s economy was growing very quickly at 6.3%. Since then, it has fallen to around 2.2%. However, until 2020, economic growth remained positive. Nigeria was less prepared for COVID-19 than it was for the 2016 recession; the pre-COVID economy was less healthy than the pre-recession economy. Interest rates and the deficit were higher and the excess crude account was not sufficient to cover the needs of the people or allay the impact of COVID-19 on poverty in Nigeria.
How Did Nigeria Respond to COVID-19?
Although Nigeria has a large and growing population, it can only test around 1,500 people a day for COVID-19. The healthcare system cannot meet the needs of the people, with only 20 frontline healthcare workers per 100,000 people. Over a year into the COVID-19 pandemic, some still consider Nigeria’s testing capacity “inefficient and insufficient.”
On March 30, 2020, President Mahummadu Buhari declared a lockdown for Lagos and Ogun states. The government eased this lockdown in early May 2020 due to the economic toll it was taking on the country. In an attempt to mitigate the impact of COVID-19 on poverty in Nigeria, Buhari launched several fiscal and stimulus measures. These included money transfers for the poorest and vulnerable, employment programs and a credit facility for healthcare providers and manufacturers.
Money Transfers and Loans
The money transfer program focused primarily on the urban poor, giving 10 billion nairas directly to two billion households as a means to lift them from poverty and improve the local economy. Nigeria’s employment program focuses primarily on unemployment and getting Nigerians into any jobs available. This largely overlooked the underemployment plaguing young, educated Nigerians.
The credit facility extends loans at a limit of 20% of the company’s three-year average turnover with interest rates of 5% to 9% annually, with the intention of stimulating and supporting local production of medical supplies, reducing healthcare tourism by Nigerians and building healthcare infrastructure. The credit covers the production of drugs, medical equipment and technology. The Central Bank of Nigeria determines the expansion and establishment of healthcare service facilities, supplying healthcare services and necessities and other activities.
Unfortunately, Nigeria, like other African nations, went on to face a second wave of COVID-19 and has just introduced more protocols to prevent a third wave. This includes massive travel restrictions, increased testing and quarantine and isolation protocols.
NGOs Working in Nigeria During COVID-19
The Consultative Group for International Agricultural Research (CGIAR), a global partnership uniting organizations dedicated to researching food insecurity, has been actively involved in aiding Nigeria during the COVID-19 pandemic. Specifically, in cooperation with the Nigerian government, it has begun distributing seeds to farmers across Nigeria. CGIAR conducted surveys to ascertain the effect of COVID-19 on supply chains, compiling the data in an interactive database. CGIAR scientists also created a crowdsourcing tool to collect real-time Nigerian local price data, revealing threats to food security.
The Good News
Nigeria implemented lockdowns relatively early compared to other African nations and targeted its lockdowns, completely exempting some essential services, such as farming, power and water supply systems and manufacturing. This lessened the impact on food systems and may have lessened the impact of COVID-19 on poverty in Nigeria.
Post-pandemic, Nigeria may take the opportunity to diversify its economy, discourage inequality and improve its healthcare systems. Having learned from COVID-19 about the vulnerability of oil, costs of inequality and poorly prepared healthcare systems, they may become better and stronger as a country.
– Hilary Brown
Photo: Flickr