For years, India has struggled with high rates of extreme poverty, as well as mass amounts of corruption within its economy and government. This has created a cause and effect cycle of poverty: creating easy access for corruption while corruption in government preventing a significant change in poverty. As a result, there has been very little change in the socioeconomic standing of many Indians, and foreign aid may seem like a futile attempt to rectify an impossible situation. However, foreign aid is critical to fighting poverty and corruption in India. And investments from the United States will have a promising profound effect on both countries.
Corruption and Poverty in India
In 2019, one in two Indians reported taking or paying a bribe, which was a 10% decrease from previous years. These bribes took all forms and appeared in many aspects of everyday life for Indians, from property registration, the police force, a tax department to municipal corporations. Furthermore, corruption can be found within the highest levels of government, and in legislation in particular. More than half of India’s public officials have received bribes, or acted upon another form of corruption, creating significant inconsistencies and ineffectiveness from the bureaucracy. Most recently, in 2019, the Corruption Perception Index gave India a score of 41 out of 100, suggesting corruption still has a significant presence throughout the country.
While the corruption within the government and economy is an issue on its own, its repercussions go far beyond an internally broken system. India has one of the highest rates of extreme poverty in the world, with one-third of its population considered poor by standards that they live on approximately $3.20 per day. Despite decreasing rates, about 50 million people still live in extreme poverty in India. With so many people resorting to living on the streets or in slums, the poor living conditions lead to disease outbreaks, high infant mortality rates and, ultimately, corruption.
The Connection Between Corruption and Poverty
Corruption and poverty in India work off of each other. Poverty creates desperate situations, leaving people with very few economic alternatives to make ends meet, whether it be food or housing, among other essential needs. Consequently, these vulnerable groups become easily exposed to exploitation. However, corruption not only thrives off of poverty, but it also worsens the situation. Internal government officials, among other community members, tend to pass money around for ranks, rather than focusing on creating effective legislation to change the poverty crisis.
As a result, the government struggles to end the continual cycle of corruption and poverty in India, and cracking down on corruption can have massive repercussions for its citizens. For example, in 2016, in an effort to reduce corruption, Prime Minister Narendra Modi discontinued the 500 and 1,000 rupees. This action began to fix stockpiling, a technique that the upper-class used to avoid paying taxes. The discontinuation voided cash hoarded overnight. And, as a result, many low-income workers had their salaries cut in half, especially those in the transportation industry.
In order to access the new forms of money, many had to go to the ATM or banks to acquire it, despite many ATMs being broken or overcrowded. Without the rich carrying around cash to pay people, such as drivers, in addition to unequal access to ATMs, there was no pay for people working already low-paying jobs. During that year, 97% of Indians didn’t make enough annual salary to qualify to pay income tax, a price of around 250,000 rupees, or $3,650.
The Importance and Benefits of American Foreign Aid
For many Americans, corruption and poverty in India may seem like the exact reason why the United States should not be investing its money in foreign aid, especially to India. However, the solution is contrary to what many may believe. Multiple studies have shown that corruption with foreign aid is an insignificant problem, compared to the solutions it provides, such as access to clean water and vaccinations. Besides the humanitarian solutions, investment in India has significant returns for the United States. With a continually growing economy, India is set to become the third-largest consumer market by 2025. In turn, this will have a significant, positive impact on the United States’ economy. Continuing to invest in India means that more and more people will not only be in the market but will be able to afford American exports, therefore improving the corruption and poverty rates of India, as well as increasing American jobs and the economy as a whole.
—Alyssa Hogan
Photo: Flickr
Global LEAD: Next Generation World Changers
Key Subgroups of Global LEAD
Leaders of Tomorrow
The youth of today will be the leaders of tomorrow so it is vital that they are included in the process of bettering communities. USAID’s Global LEAD Initiative is taking steps to ensure that the world’s youth have access to the necessary resources to be able to innovate and lead further international development.
– Melanie McCrackin
Photo: Flickr
GiveDirectly’s Cash Transfer Project for Kenyans
Kenya Emergency Cash Fund
The Kenya Emergency Cash Fund, also known as the Kenya COVID-19 Fund, was formed in partnership with the Shikilia Initiative, which is a collaboration between the Kenyan private sector and nonprofit organizations. In coordination with GiveDirectly’s cash transfer project, Shikilia’s goal during the pandemic is to provide 200,000 people with monthly transfers of $30 for the next three months.
“We currently have enrolled 11,000 adults into the program and have disbursed around $300 to these recipients,” Director of Recipient Advocacy, Caroline Teti, told The Borgen Project. Teti joined GiveDirectly in 2016. She hopes to put an end to the devastating and disempowering nature of poverty across Africa through innovative projects such as GiveDirectly’s cash transfer project.
GiveDirectly has already launched settlements in Mathare, Kibera, Korogocho, Mukuru and Kawangware. This is crucial since resident families of these settlements live on $2 or less and are therefore expected to take the hardest economic hit as a result of the pandemic. For example, Teti reported that as a result of COVID-19, 95% of people in Mathare are eating less.
Recipients barely had savings before the pandemic. So, without GiveDirectly’s cash transfers made available to low-income communities by the Emergency Cash Fund, Teti believes that “families would have snuck back to the villages, increasing transmission risks to older people living in the countryside.”
Making Cash Transfers Efficient
In order to ensure that these cash transfers made to recipients are efficient, GiveDirectly is partnering with Shining Hope for Communities, a grassroots movement that catalyzes large-scale transformation in urban slums in Kenya.
Methods GiveDirectly and SHOFCO use to reach recipients more rapidly include using existing databases of low-income households, using rosters provided by local vetted NGO partners and using rosters of mobile money subscribers recruited through partner mobile network operators.
Project 100
Though GiveDirectly’s priority is getting cash to hard-hit families in extreme poverty in Kenya, it also organized Project 100 to raise funds for U.S. families impacted by COVID-19. For this project, GiveDirectly partnered with Propel, a company that helps recipients of the Supplemental Nutrition Assistance Program manage their benefits. The project aims to raise a total of $100 million for recipients.
The Road Ahead
According to the World Bank, poverty in Kenya may still remain above 20% by 2030 if it continues on a minimal growth path. More job opportunities for youth and infrastructure investments that improve transportation and service deliveries would be necessary to raise Kenya’s productivity.
Through GiveDirectly’s cash transfer project, an efficient and simple method of delivering cash, small-scale businesses will have the opportunity to grow, especially when food insecurity is no longer an obstacle. As Teti says, “We must rethink recipient empowerment and consider cash as a model for changing the lives of people living in poverty.”
– Joy Arkeh
Photo: Flickr
Alleviating Child Poverty in Rwanda
The Effects of Child Poverty in Rwanda
The rate of impoverished Rwandan children ages 0 to 17 is 39%. Children disproportionately undergo the struggles of poverty and it significantly impacts their well-being since they lack basic needs. Impoverished families in Rwanda, especially in rural areas, experience high rates of mortality among children under the age of 5. About 50 children out of 1,000 births in the country do not live past the age of 5 years old..
Impoverished children also struggle greatly with malnutrition. As a result, many children face low birth weight and infections. Malnutrition creates lasting effects on children, specifically in terms of cognitive development and physical growth. Furthermore, Rwandan children struggle with the impact of poor sanitation. A clean and safe source of water within 500 meters of a house is only accessible to 47% of Rwandan households. Additionally, 64% of households own a latrine. Lack of access to quality sanitation and water sources contributes to 38% of Rwandan children being stunted.
Child Poverty in Rural and Urban Areas
In terms of deprivation of sanitation, water, housing, education and health due to poverty, there is a gap between children living in rural areas and children residing in urban areas. Moreover, 83.5% of the rural population in Rwanda consists of children. In urban areas, 38% of children ages 0 to 23 months undergo multiple deprivations as opposed to 61% of children in rural areas. Additionally, in urban areas, 22% of children ages 15 to 17 are considered “multidimensionally poor” with a deprivation rate of 16% among children ages 5 to 14. On the other hand, in rural areas, the deprivation rate of children ages 5 to 14 is 32% and 50% of children ages 15 to 17 are “multidimensionally poor”.
Government Solutions
The Rwandan Government has worked toward further developing its Vision Umurenge Social Protection (VUP) program by including child-sensitive social protection. In 2011, the government passed Law N.54 to protect children’s rights but there is inequality in the law’s implementation, which prevents children from receiving its full benefits.
While Rwanda has witnessed a recent decrease in child poverty, through a Multiple Overlapping Deprivation Analysis (MODA), UNICEF provides recommendations to further efforts to eradicate poverty among children. UNICEF suggests increasing the support provided by the Rwandan Government’s social protection program, VUP, to give children greater access to social services and to decrease the number of deprivations due to poverty. Furthermore, UNICEF recommends that the social protection program considers overlapping deprivations when providing services. UNICEF also emphasizes the importance of prioritizing the most vulnerable groups of children, especially those living in rural areas and children ages 0 to 23 months.
– Zoë Nichols
Photo: Flickr
How the Caste System Affects People in India
The caste system is a significant social system in India. One’s caste affects their options regarding marriage, employment, education, economies, mobility, housing and politics, among others.
How the Caste System Affects Citizens
It is just as Dr. Bhimrao Ambedkar said, “Caste will stand in your way for political and economical reforms within India.” According to him, eradicating such a strong foundation is extremely difficult yet doable. However, the path to reform has many roadblocks in it.
How Can the Government Solve this Caste Issue?
The government has come to the conclusion that segregating people across castes and aligning them to a particular caste by offering special quotas will solve the caste problem. In fact, the Indian government provides incentives to people of lower caste to make them feel better about their poor inheritance. However, the caste system still lurks in the minds of Indian citizens.
According to Ambedkar, the annihilation of the caste system can be done by supporting these actions:
Prime Minister Narendra Modi’s political agenda includes caste elimination from the country. India has improved to some extent in this 21st century on several fronts. However, there is still lots of room to grow. The Indian government has an effective plan of bringing people together from all walks of life. Yet, certain inherent ideological contradictions will stand in the way while solving this issue. Regardless, that should not deter our hope in escaping the shackles of casteism.
– Narasinga Moorthy
Photo: Flickr
Decreasing Maternal Mortality Rate in Sierra Leone
Data Behind the Mortality Rate in Sierra Leone
For the government of Sierra Leone, keeping a consistent record of deaths was nearly nonexistent during the Ebola outbreak. According to an article by Financial Times, Dr. Sesay, who is “the government’s director of reproductive and child health,” conducts the government’s response to the maternal deaths. According to Dr. Sesay, procedures are set out to lower the maternal mortality rate in Sierra Leone. “We’ve put in place a maternal death surveillance and response team, and developed a technical guideline. When a death is reported, they go and confirm.”
Part of the surveillance is ensuring that reporting the deaths is imperative. This requires health workers within communities to report the deaths to major health facilities. Furthermore, this is vital to decreasing the maternal mortality rate in Sierra Leone as it ensures that all families are accounted for and not misrepresented in the sample population. However, the same health workers reporting the data are the same ones attempting to save these expectant mothers’ lives, which stretches on the ground workers.
Looking at the Numbers
Maternal mortality in Sierra Leone had reached 1,070 deaths between January to June of 2020. According to a report by the ministry of health and sanitation in Sierra Leone, from January to March of 2020, there was a total of 581 maternal deaths. And from April to June of 2020, the total was 489 maternal deaths.
Equally as important, the predominant reference of data for maternal deaths is CRVS (Civil Registration and Vital Statistics). The issue is that Sierra Leone doesn’t recognize this system of data reporting. When this occurs, other data systems are created, such as surveys and various studies, which leaves more room for inaccurate information. The organizations the World Health Organization, the United Nations International Children’s Emergency Fund, the United Nations Population Fund and the World Bank Group have collectively concluded that not all deaths can be recorded due to “systematic error.” Meaning the data presented won’t be accurate due to the actual number being lower or higher and this will impact how the maternal mortality rate is decreasing in Sierra Leone.
However, when using CRVS, “records will be systematically lower than the true number because there will always be deaths that go unreported. This is referred to as a systematic error.” Along with systematic error, there is the possibility of “random error,” meaning when a health worker records inaccurate information. This increases the inaccuracy of maternal deaths in Sierra Leone. Considering health workers are underpaid and overworked, random error is present when recording maternal deaths.
How to Improve Maternal Mortality Rate Efforts
There are multiple ways of decreasing the maternal mortality rate in Sierra Leone. However, today’s most beneficial way is by increasing and encouraging education for traditional birth attendants (TBAs). Undergoing childbirth for many women in Sierra Leone in the past meant being at home and having a TBA present. Usually, a TBA is an elderly woman from within the community and is often referred to as “auntie” or “mother.” Although this may sound beneficial and comfortable, such as having a midwife or doula, according to the government, TBAs were the primary reason for the country’s maternal deaths.
If patients were to have any complications during delivery, the TBA would inform the patient that emergency transportation would take too long to arrive and going to the nearest clinic would take too much time. In most cases, patients would bleed out as healthcare officials would arrive too late. The government attempted to resolve this issue by ratifying a law in 2010 forbidding TBAs to assist in deliveries outside of a clinical environment. If a TBA and anyone else taking part in the process, including the expectant mother, were caught defying this law they would face extreme retribution.
Established in 2001, the non-governmental organization IsraAID is working towards providing “emergency and long-term development settings in 50 plus countries.” The organization also has a medical care program that targets “reproductive health,” along with expanding educational opportunities. For the maternal mortality rate to decrease, the government of Sierra Leone has to establish effective maternal mortality reporting data and education for TBAs.
—Montana Moore
Photo: Flickr
Teaching Children in Sub-Saharan Africa Via TV Amid COVID-19
Teaching Children in Sub-Saharan Africa During COVID-19
Bringing access to education to every child is a task that many African nations are working on, but have not yet achieved. Recent statistics from the United Nations Educational, Scientific and Cultural Organization (UNESCO) show that one-third of the children in sub-Saharan Africa are not in school. This issue is also a gendered one, with UNESCO reporting that only 8% of girls finish secondary school.
The COVID-19 pandemic has made it all the more difficult for children in this region to access educational resources. UNESCO monitoring shows that COVID-19 has affected 1.2 billion children’s education around the world. In addition, many organizations believe that developing nations will continue to struggle to fund education in the upcoming years due to the urgent redirecting of funds in response to coronavirus.
Governments in sub-Saharan Africa are not left with many choices but to shut down schools to best protect the health of civilians. Online schooling is not an option for many children in this region. UNICEF reports that at least one in two children in sub-Saharan Africa do not have access to the internet, with many more lacking stable and uninterrupted connections. In turn, governments have turned to television programs during COVID-19 as a creative alternative that may be more accessible than online programs.
Ubongo
Ubongo, which means ‘brain’ in Swahili, is one of Africa’s most popular producers of children’s entertainment. Founded in 2013, its programs now reach more than 17 million homes across Africa. The organization produces free, entertaining educational content on television, radio and mobile phones to ensure the most access possible.
Ubongo has programs for different age groups, ranging from ages 3 to 14. One challenge that Ubongo faces is the difference in language across the continent. However, CEO and co-founder Nisha Ligon explains that the organization is actively working to adapt its content to the needs of children across Africa as its capacity grows.
For many children who are unable to attend school due to government regulations, Ubongo is the only way to continue learning. One Tanzanian mother told Reuters that Ubongo has helped her child “differentiate a lot of shapes and colors, both in English and Swahili.”
According to Ubongo’s head of communications, Iman Lipumba, the COVID-19 pandemic has given the organization the opportunity and responsibility to expand its operations. Between March and August 2020, Ubongo expanded from nine countries to 20.
Teaching children in sub-Saharan Africa via educational television programs during COVID-19 has given many children the opportunity to broaden their knowledge, but TV programs are certainly not a permanent nor comparable replacement to in-class learning. However, in the near future, during which COVID-19 will surely continue to affect access to education, Ubongo plans to develop more content about health and the prevention of COVID-19.
– Leina Gabra
Photo: Flickr
The Digital Moonshot: Bringing Universal Internet Access in Africa
In April 2019, international organizations gathered to discuss the African Union’s Digital Transformation agenda and the Digital Moonshot initiative, which aims to “digitally enable” all of Africa by the year 2030, in line with the United Nations’ target date to meet the Sustainable Development Goals.
The Importance of the Internet
The disparity in internet access in Africa has hindered economic growth in both the private and public sectors across the continent. In emerging economies like Brazil and India, the internet has accounted for over 10% of GDP growth over the last five years. Although African countries have made considerable progress in economic development in the last few years, it continues to lag in this regard.
It is not just African businesses and governments who would benefit from greater internet connectivity but individuals, too. In a poll by the Pew Research Center, a majority of people in sub-Saharan Africa believe that increased access to the internet has had a positive influence on the economy, education and interpersonal relationships.
Internet access in Africa has certainly increased in the 21st century. Between 2014 and 2017, the percentage of people in sub-Saharan Africa who use the internet increased from 29% to 41%. However, there is still important work to be done to ensure universal internet access in Africa and importantly, stable connectivity.
The African Union’s Digital Transformation Agenda
The African Union released its Digital Transformation Agenda to digitally empower all businesses and individuals to freely access the internet by 2030. This plan will also spur intra-African trade and investment, therefore requiring a high level of cooperation between all nations in the African Union.
Currently, the African Union considers weak coordination and collaboration as a key threat to this agenda. Another central issue is a lack of cooperation between “continental institutions” in the digital sector; the African Union report states that “this deficiency must be addressed immediately otherwise the project is already destined to fail even before being implemented.”
However, the African Union also sees this plan as an opportunity for increased harmonization between regional and continental actors. It also hopes that it can improve relationships between governments within the continent. This is why collaboration with a variety of international organizations who are supporting this initiative.
The Digital Moonshot Initiative
The Digital Moonshot initiative is the World Bank’s project to support the African Union’s Digital Transformation Agenda. This initiative recognizes the need for a holistic approach that will go beyond simply increasing internet access in Africa.
World Bank Vice-President for Infrastructure Makhtar Diop stressed that the Digital Moonshot will include many fields, such as “e-government transformation, fintech, investment in human capital and digital literacy,” and support for entrepreneurship in digital advancement.
Going further, both the African Union and the World Bank emphasized the importance of inclusivity in this initiative. The African Union recognizes that the cost of internet access will inherently inhibit Africa’s poorest from being a part of the digitization initiative. Thus, the Digital Moonshot initiative will make a point to emphasize job creation and poverty reduction in the digitization process.
It also notes that a gender gap exists in access and usage of mobile phones and the internet that must be addressed as part of this plan. The World Bank’s Digital Moonshot will place a special focus on women, ensuring that the policies implemented do not exacerbate the existing gender gap in digital access.
The support of many international organizations, including the World Bank, will be crucial to the achievement of the African Union’s Digital Transformation Agenda and ultimately the pursuit of universal internet access in Africa. If these plans move forward as expected, they will have a significant impact on Africa’s economic growth and its path towards poverty reduction, in addition to connecting more African individuals and sharing their voices to the world.
– Leina Gabra
Photo: Flickr
Ending Poverty: Updates on the SDGs in Bolivia
Background
In the 1970s, economists from the University of Chicago drove Bolivia’s economy into the ground with a series of free-market reforms that generated widespread poverty. More recently, the United States was accused of participating in a coup that led to the removal of President Evo Morales. Compared with less affluent nations, America’s disproportionate influence with the United Nations, the World Bank and the International Monetary Fund is worrisome to less influential nations, like Bolivia.
Bolivian officials brought their criticisms of the language used to write the introduction and preamble of the U.N.’s sustainable development goals to the U.N.’s attention, and revisions were made. Their chief complaint was, “That the preamble and the introductory section of the proposed document are setting out a western and anthropocentric mindset of the world, reinforcing a mindset which has originated the current problems of the world for not achieving sustainable development.”
This called into question the U.N.’s ability, functioning as it currently does, to address the global poverty and environmental crises.
National SDG Progress in 2021
Every few years, a group of U.N. member nations volunteer to present their progress on SDG goals. In July 2021, Bolivia will be among four other nations to present for the first time during the U.N. High-level Political Forum on Sustainable Development (HLPF). This demonstrates Bolivia’s eagerness to cooperate with the U.N., despite stated differences in perspective and approach.
The first SDG goal will be emphasized by the forum, as well as goals 10, 12 and 13. These last three goals deal with issues related to ethnic diversity and environmental sustainability, which are at the forefront of Bolivia’s national development policy. Significantly, as a first-time presenter, Bolivia will have half an hour to present to the forum.
Rosa Vera Fund
As part of its updates on the first SDG goal in Bolivia to the United Nations, perhaps Bolivia will summarize the work done by the Rosa Vera Fund, which provides physical therapy to Bolivian children with cerebral palsy, epilepsy and physical disabilities. Through physical therapy, the Rosa Vera Fund ultimately helps children with physical disabilities lead lives with greater economic independence. In the short term, the Rosa Vera Fund works with children during hours when their mothers are at work, thus freeing many Bolivian women from the obligation to take care of their children during the day. This program leads to immediate and long term benefits for Bolivian workers.
In partnership with the Consejo de Salud Rural Andino Montero, the Rosa Vera Fund was established in 2005. It provides essential care to approximately 60,000 patients in Montero. While its impact cannot be measured in rough trends, the Rosa Vera Fund has impacted thousands of Bolivians’ lives. Its work seeks to reduce poverty rates for Bolivians with physical disabilities, as well as poverty rates for the mothers of Bolivian children with physical disabilities.
Recently, the Rosa Vera Fund acknowledged that it faced obstacles when it delivered service to its clients because of widespread unrest in Montero after the removal of President Evo Morales. The updates about the SDGs in Bolivia indicate some of the historical precedents for political unrest in Bolivia.
Regardless of political strife, the Rosa Vera Fund is confident in the ongoing viability of its mission: “As future political changes unfold, we are confident that the Rosa Vera Fund will be able to weather the storm and just keep plugging along, doing what we do best: Provide medical care and social interventions for children with special health care needs, who have no other options.”
– Taylor Pangman
Photo: Flickr
5 Rheumatic Diseases and Disorders Diagnosed in South Africa
5 Rheumatic Diseases and Disorders in South Africa
Poverty and Accessing Treatment
Accessing medical care is difficult, especially for those who are suffering from extreme poverty. In 2015, 18.8% of South Africans were living in poverty. The poverty rate between 2011 and 2015 increased by 2%. Efficient healthcare prominently available in private hospitals in South Africa; however, there are also public hospitals that treat patients. Yet, public hospitals are reported to suffer from long waiting lines and a shortage of staff.
More than 57 million people live in South Africa. Still, the region reports having only 85 adult and pediatric rheumatologists that treat rheumatic diseases and disorders. According to disease specialists, there should be a rheumatologist specialist for every 180,000 people, making the lack of medical care for rheumatology in South Africa clear. The shortage of rheumatologists is addressed by organizations such as the South African Rheumatism and Arthritis Association.
Organizations Helping Aid South Africa’s Rheumatic Diseases and Disorders
The South African Rheumatism and Arthritis Association (SARAA) is an organization that consists of medical professionals who are knowledgeable in the rheumatology department. The nonprofit organization of medical professionals represents South Africa’s rheumatology and brings awareness to the rheumatology field. They encourage other medical professionals to become members and believe in promoting their IDEAL vision: inclusiveness, dynamic, excellence, advancement and action and leaders.
The African League Against Rheumatism (AFLAR) is an international organization that promotes rheumatology in Africa, rheumatology education and its practice in Africa. It was established in 1989 and continues to work on educating medical employees and African citizens about rheumatic diseases and disorders in Africa.
Rheumatic diseases, such as lupus, Sjogren’s syndrome, rheumatoid arthritis, gout and scleroderma, are diseases. or disorders that affect people worldwide, including South Africa. Suppose rheumatologists in South Africa are given support in bringing awareness to the different health conditions and given more medical resources. In that case, South Africa’s rheumatology department can progress, meaning earlier detection and more knowledge on diseases and disorders.
—Amanda Cruz
Photo: Flickr
Why the United States Should Help Fight Corruption in India
Corruption and Poverty in India
In 2019, one in two Indians reported taking or paying a bribe, which was a 10% decrease from previous years. These bribes took all forms and appeared in many aspects of everyday life for Indians, from property registration, the police force, a tax department to municipal corporations. Furthermore, corruption can be found within the highest levels of government, and in legislation in particular. More than half of India’s public officials have received bribes, or acted upon another form of corruption, creating significant inconsistencies and ineffectiveness from the bureaucracy. Most recently, in 2019, the Corruption Perception Index gave India a score of 41 out of 100, suggesting corruption still has a significant presence throughout the country.
While the corruption within the government and economy is an issue on its own, its repercussions go far beyond an internally broken system. India has one of the highest rates of extreme poverty in the world, with one-third of its population considered poor by standards that they live on approximately $3.20 per day. Despite decreasing rates, about 50 million people still live in extreme poverty in India. With so many people resorting to living on the streets or in slums, the poor living conditions lead to disease outbreaks, high infant mortality rates and, ultimately, corruption.
The Connection Between Corruption and Poverty
Corruption and poverty in India work off of each other. Poverty creates desperate situations, leaving people with very few economic alternatives to make ends meet, whether it be food or housing, among other essential needs. Consequently, these vulnerable groups become easily exposed to exploitation. However, corruption not only thrives off of poverty, but it also worsens the situation. Internal government officials, among other community members, tend to pass money around for ranks, rather than focusing on creating effective legislation to change the poverty crisis.
As a result, the government struggles to end the continual cycle of corruption and poverty in India, and cracking down on corruption can have massive repercussions for its citizens. For example, in 2016, in an effort to reduce corruption, Prime Minister Narendra Modi discontinued the 500 and 1,000 rupees. This action began to fix stockpiling, a technique that the upper-class used to avoid paying taxes. The discontinuation voided cash hoarded overnight. And, as a result, many low-income workers had their salaries cut in half, especially those in the transportation industry.
In order to access the new forms of money, many had to go to the ATM or banks to acquire it, despite many ATMs being broken or overcrowded. Without the rich carrying around cash to pay people, such as drivers, in addition to unequal access to ATMs, there was no pay for people working already low-paying jobs. During that year, 97% of Indians didn’t make enough annual salary to qualify to pay income tax, a price of around 250,000 rupees, or $3,650.
The Importance and Benefits of American Foreign Aid
For many Americans, corruption and poverty in India may seem like the exact reason why the United States should not be investing its money in foreign aid, especially to India. However, the solution is contrary to what many may believe. Multiple studies have shown that corruption with foreign aid is an insignificant problem, compared to the solutions it provides, such as access to clean water and vaccinations. Besides the humanitarian solutions, investment in India has significant returns for the United States. With a continually growing economy, India is set to become the third-largest consumer market by 2025. In turn, this will have a significant, positive impact on the United States’ economy. Continuing to invest in India means that more and more people will not only be in the market but will be able to afford American exports, therefore improving the corruption and poverty rates of India, as well as increasing American jobs and the economy as a whole.
—Alyssa Hogan
Photo: Flickr