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Archive for category: Developing Countries

Information and stories about developing countries.

Developing Countries, Global Poverty

Poverty Rate of Venezuela Increases

Poverty Rate of Venezuela
Venezuela, once expected to be one of the richest countries in South America, has been crippled by socialist dictators and now suffers from widespread poverty. In fact, 82% of the population lives in poverty. With the largest oil reserves in the world, Venezuela’s economy has become solely dependent on oil.

Venezuela has relied on high oil prices to bolster their exports and pay for importing basic goods, including food and medicine. However, with the price of oil dropping dramatically in the last few years, Venezuela’s economy has taken a major hit and caused drastic inflation. As inflation skyrocketed and political turmoil brewed, investors and businesses drained out of the country.

Currently, Venezuela leads the world with the highest inflation. In December of 2016, it reached a high of 800% inflation and has not significantly decreased since. According to the LA Times, it cost $150 to buy a dozen eggs in Venezuela in 2016. This hyperinflation has caused Venezuela’s currency, the Bolivar Fuerte, to depreciate. This has caused the poverty rate of Venezuela to jump to more than 80%.

 

Poverty in Venezuela

 

The face of poverty in Venezuela is also changing. With such a staggeringly high poverty rate, poverty now affects citizens with degrees who cannot find jobs and more urban people, in addition to the already rural poor.

Long lines at supermarkets have developed as people seek the most basic and necessary means of survival. According to CNBC, Venezuelans are eating two or fewer meals a day and around three-fourths of the population have watched their weight decrease throughout the years.

In 2016, President Nicolas Maduro increased the minimum wage by 40%. With inflation, this means that citizens who receive minimum wage earn just $67 a month. The explosive poverty rate and lack of proper government response have prompted protests, as this issue is now being seen as a clear violation of human rights.

However, opposition leaders Leopoldo Lopez, his wife, Lilian Tintori and Capriles Radonski acknowledge the situation and have been fighting for a better Venezuela. A Venezuela with democratic power, basic goods and luxuries everyone can afford, a Venezuela with jobs for everyone, lower crime rates and better health care.

The high poverty rate in Venezuela has reached the attention of the world. Raising awareness has been part of finding hope for Venezuela. The hashtag #SOSVenezuela has been used over the last few years to protest corruption and has acted as a rallying cry to bring global attention to the people affected by Venezuela’s dire political situation.

– Francis Hurtado

Photo: Google

August 4, 2017
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2017-08-04 01:30:522024-12-13 17:58:23Poverty Rate of Venezuela Increases
Children, Developing Countries, Global Poverty

Studies Show Long-Term Effects of Poverty in Children

Effects of Poverty in Children
Recent research and behavioral studies focusing on children that grow up in conditions of poverty have indicated that the stress associated with that environment can have lasting negative effects. It has been long accepted in the field that spending one’s formative years in the tough circumstances associated with poverty can lead to learning and behavioral problems. However, these recent studies indicate something different: the long-term effects of poverty in children are not only potentially psychologically detrimental but also physiologically damaging.

Researchers and experts in the field have coined the term “toxic stress” to describe the prolonged activation of the stress response system when a child experiences strong, frequent or prolonged adversity. Children brought up in the harsh conditions of poverty are highly likely to be continually exposed to this type of toxic stress. The absence of protective relationships, physical and emotional abuse, chronic neglect, exposure to substance abuse and violence and the accumulation of family economic hardships all lead to the prolonged activation of the stress response system. This toxic stress, especially in the early formative years of a child’s development, can have highly detrimental effects on the individual’s health which follows them for the rest of their lives.

The most recent research suggests that toxic stress can lead to some of the major causes of the deadliest diseases in adulthood, such as diabetes and heart attacks. As Dr. Tina Hahn, a pediatrician, recently claimed, “The damage that happens to kids from the infectious diseases of toxic stress is as severe as the damage from meningitis or polio.”

Undergoing toxic stress can also lead to higher risks of internal inflammation; a 2015 study at Brown University found that the saliva of children who had experienced abuse or other hardships had elevated levels of inflammation markers. The effects of poverty in children can also potentially be deadly: one of the direst findings, from a 2009 study, found that adults with six or more adverse childhood experiences died 20 years earlier than those with none.

The findings of the adverse long-term effects of poverty in children have begun to lead to a change in approach on behalf of psychologists, pediatricians and educators. The American Academy of Pediatricians in 2016, for example, passed a policy urging pediatricians to routinely screen families for poverty and help them find food, homeless shelters and other necessary resources. Some schools have also begun to screen children for signs of toxic stress, in order to curb these harmful effects before they manifest themselves. This practice, unfortunately, is far from universal. However, as awareness about these findings grow and more studies reach similar conclusions, the professional — and public — attitude toward the issue of poverty is beginning to change, it is beginning to no longer be seen only as a socio-economic issue but as a fundamental humanitarian and health one.

– Alan Garcia-Ramos
Photo: Flickr

August 3, 2017
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Developing Countries, Global Poverty

Why is Bhutan Poor?

Why Is Bhutan Poor
Why is Bhutan poor? The landlocked country, located in the eastern region of the Himalayan Mountains, is one of rich culture and strong national pride. Despite the lack of infrastructure and small economy, Bhutan is considered to be the happiest country in Asia. It is also one of the poorest, with a striking poverty rate of 12%. Factors such as rugged landscape, lack of education and intangible government goals all contribute to answering this question: Why is Bhutan poor?

Difficult Landscape

Due to its location in the Himalayas, Bhutan’s terrain is extremely hilly and rugged. It also has no contact with any body of water. This makes movement throughout and beyond the country extremely difficult. The lack of mobility further impacts the ability of the Bhutanese government to make health care and education readily available throughout the country.

Lack of Education

Most children have to walk two to three hours to find a primary school. Consequently, 47% of the population above the age of six is uneducated. Without an education, finding a job becomes extremely difficult. Most jobs require specialized skills, so the impoverished Bhutanese population is often limited to either subsistence farming, trading or laboring.

Farmers, especially in rural regions, are severely limited in capital and resources and often work for the bare necessities. Given that 96% of the poor live in rural areas, most of them get stuck in a vicious cycle of poverty. Even if they were to get enough capital to produce more, due to inadequate access to markets, they would not be able to take part in much trade. Consequently, education certainly plays a big factor in answering the question, why is Bhutan poor?

Natural Disasters

Bhutan is often struck by natural calamities due to its mountainous landscape. Floods and landslides make it impossible for any major infrastructural development to take place. This also increases the cost of goods and services. These natural disasters also affect residents’ health by causing an increase in diseases such as malaria and tuberculosis. This can prevent already poor families from going to work and increase medical costs.

Despite these sub-par living conditions, the government continues to focus on Gross National Happiness instead of improving the economy. With such a large proportion of the population living under the poverty line, Bhutan must rise up and focus on tangible objectives.

Recently, the government has implemented legislation, such as the National Rehabilitation Programs and the Rural Economic Advancement Program, that aim to help needy individuals by giving them land and better socioeconomic opportunities. Bhutan may have a long way to go, but these programs have certainly propelled them in the right direction and away from the question: why is Bhutan poor?

– Tanvi Wattal

Photo: Flickr

August 3, 2017
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Developing Countries, Global Poverty

Causes of Poverty in Mali

Causes of Poverty in Mali
As growth programs in Africa transition from aid to investment, the quality of life for its inhabitants improves. The effects of poverty vary from place to place. For example, let’s examine the causes of poverty in Mali.

The World Bank Group (WBG) strives to promote risk management in its development policy operations and its understanding of the adverse factors that could affect its operations in Africa. As a result, its strategies could help alleviate some of the causes of poverty in Mali.

The WBG uses Standardized Operations Risk-Rating Tools to evaluate the success of its Country Partnership Framework. These tools are significant in the coordination and execution of development programs. They set the tone for what is achievable in the WBG’s operations. As a technique for risk management, the WBG employs different factors to determine the key impediments to development plans and the success of poverty reduction programs in Africa. Consequently, in the WBG’s assessment of its multilateral investment framework in 2016, the bank outlines certain risk factors that impede growth and are the causes of poverty in Mali.

The process for improvements in Africa must consider political stability as a condition for allowing investment plans to flourish. For the development intentions such as providing education, electricity, infrastructure, food security and regional integration in Africa, there must be peace and an environment where violence does not frighten investors. In Mali, high poverty in densely populated areas, increasing youth unemployment, unfavorable climate and environmental disasters worsen living conditions. More causes include:

  1. Conflict Risk: Conflicts in the west of Mali have had a ripple effect on other parts of the country. For example, there has been an increase in violence in the country’s southern region. The longer the instability in the north persists, the longer impact it will have on stability in the rest of the country.
  2. Lack of Progress on Key Governance Reforms: The Systemic Country Diagnostic for Mali indicates that poor infrastructure has worsened the government’s ability to tackle physical security issues and create an environment for economic growth.
  3. Economic risks: As increased violence raises concern for foreign investments, development partners are expected to reevaluate supporting development plans.
  4. Lack of Key Sector Reforms: As reforms in key sectors such as agriculture and energy should contribute to the reduction of poverty, these growths are unlikely if the terms of peace agreements are not met.
  5. Security Challenges for WBG-Funded Activities: A solution is to simplify the implementation arrangements and close cooperation with partners on the ground, as there is a low institutional capacity to implement these programs.

As an important contributor to development in Africa, the World Bank Group is committed to programs that have the potential of achieving the poverty reduction goals for 2030. These causes of poverty in Mali are similar to the causes of poverty in other parts of the globe. Thus, success and peace are mutually inclusive as they are significant factors for growth in Mali and other parts of Africa. As a result, stability in Mali is necessary for growth to continue.

– Ebuka Okoye

Photo: Flickr

August 2, 2017
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2017-08-02 01:30:202020-07-07 09:20:55Causes of Poverty in Mali
Developing Countries, Global Poverty

The Long Haul: Decreasing the Rate of Poverty in Pakistan

Poverty in Pakistan
In 2016, Pakistan produced its first report on multidimensional poverty from its Ministry of Planning, Development and Reform. According to this report, almost 39% of Pakistan’s population lives in poverty. This figure is Pakistan’s official Multidimensional Poverty Index (MPI), which was compiled by UNDP Pakistan and the University of Oxford.

Initially, this figure shows a sign of progress, as the rate of poverty in Pakistan has decreased from 55% in 2004 to 39% in 2016. However, this progress has not occurred evenly throughout the country. In urban areas, the poverty rate can be as low as 9.3% while in rural areas the poverty rate rises to 54.6%.

The MPI does not define poverty merely as an extreme lack of wealth. It also takes health, education and standard of living into consideration, hence a multidimensional definition of poverty. The idea is that with a multifaceted approach, poverty in Pakistan can be more understandable and easier to alleviate.

As of 2015, 29.5% of Pakistan’s population was below the national poverty line. In this way of thinking, poverty simply means that one’s income is not enough to purchase a certain standard of goods, mainly food. It is true that poverty in Pakistan is decreasing in that more people have moved out of a situation where they cannot afford food, and this is definitely a sign of progress. However, inequality remains.

Inequality between the upper and middle and lower classes continues to grow, both in income and region, though the gender pay gap has decreased. Dawn, Pakistan’s oldest English writing newspaper, writes, “With the rich getting richer, and the middle class expanding, with political control in the hands of both under the despotism of capital in the neoliberal present, inequality is only going to grow in Pakistan.”

The Minister for Planning, Development and Reform has a plan. The MPI is a tool that will be used for inclusive and balanced growth in an attempt to produce an equal and harmonious society. It “provides useful analysis and information for targeting poverty, and reducing regional inequalities.” Within the next years, it is hoped that poverty in Pakistan will continue to decrease.

– Ellen Ray
Photo: Flickr

August 1, 2017
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Developing Countries, Global Poverty

The Current Level and Causes of the Poverty Rate in Russia

Russia Poverty Rate
According to The Guardian, the poverty rate in Russia in 2016 was 13.4%, the highest it’s been since 2006. In spite of this, the poverty rate in Russia has decreased significantly since Vladimir Putin took office in 2000.

 

Factors Contributing to the Poverty Rate in Russia

 

One of the largest contributors to Russian poverty is the sanctions put on the country in 2014 by Western countries, as discussed in Radio Free Europe/Radio Library. These sanctions were condemnations for some of Russia’s recent actions, including the annexation of Crimea.

Another factor in the increase in the poverty rate in Russia is the shrinking economy. Much of this deals with the diminished prices of oil, on which the Russian economy heavily depends.

Debt is another contributor to the poverty rate. According to MarketWatch, many of Russia’s 85 regions are in debt due to the local governments relying heavily on commercial loans from Russian banks: “[M]ore than 25 Russian regions had debt-to-revenue ratios of over 85%.”

Local governments also have to pay high taxes to the national government, which many struggle to do. Several of the regions have even defaulted on national loans, causing both frustration and government instability on both sides.

These factors coincide with the rising cost of Russian goods and the decrease of Russian wages. Because of this, Russians are less inclined or able to spend much money, which is reflected by the 5.9% decrease in retail.

Regardless, by the first quarter of 2017, Russia has decreased its poverty rate by nearly 7%. According to Tatiana Golikova, chief of Russia’s Audit Chamber, “[There are] 1.4 million people less [living in poverty] than in the first quarter of last year.”

Moreover, according to MarketWatch, Russia is expected to end its regression in 2017. Reasons for this include a stricter budget and more realistic market expectations.

– Cortney Rowe

 

Photo: Flickr

July 31, 2017
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2017-07-31 01:30:082020-07-02 09:18:18The Current Level and Causes of the Poverty Rate in Russia
Developing Countries, Education, Global Poverty

Inarguable Link: Child Mortality and Maternal Education

Child Mortality and Maternal Education
The link between child mortality and maternal education is clear: educating mothers directly impacts the health of their babies. Even small improvements in maternal education help to fight child mortality that causes 16,000 deaths each day, primarily in developing countries. This stresses the global need for equality in education- particularly in accounting for the needs of women and mothers who are disproportionately denied educational opportunities around the world.

In 2011, 6.1 million children under the age of five died of preventable causes in low- and middle-income countries. An estimated 49% of those deaths were preventable had the mothers of the children received a secondary school education. Even when mothers only acquire a primary school education, they reduce the chances of their children dying from diarrhea by eight percent and malaria by 22%. UNESCO explains that when a baby is born to a literate mother, he or she is 50% more likely to live past five years old.

Many similar figures are available, all with the same key findings: as maternal education increases, child mortality decreases. Malnutrition, lack of immunization, preventable illnesses and birth complications–responsible for millions of premature child deaths around the world every year–are significantly reduced by redirecting the relationship between child mortality and maternal education.

Literacy and education provide mothers with knowledge of sanitation, nutrition, health and safety to better care for their children. For example, literate mothers are more likely to purify water and seek out healthcare if they notice their child getting sick. Mothers who can read and write are 23% more likely than illiterate mothers to acquire the help of a birth attendant, avoiding birthing complications that perpetuate heightened rates of child mortality.

The relationship between child mortality and maternal education represents a global health inequity. Women make up an estimated two-thirds of the world’s illiterate adult population, and 60% of countries do not provide equal access to education for males and females. Child mortality is most common in low income and developing nations.

The World Health Organization explains that there are eleven times more child deaths under the age of five in low-income countries than in high-income countries as of 2015.

This means that equality for all people in access to education is viable as a way to fight poverty and combat child mortality. UNESCO emphasizes that “there are few more dramatic illustrations of the power of education” than its ability to save lives when gender equality is enhanced. The United Nations summarizes that gender equality in education “raises economic productivity, reduces poverty, lowers infant and maternal mortality and helps improve nutritional status and health” emphasizing equality as a necessity for sustainable development.

Improving maternal education remains both a key obstacle and a prospect for fighting these global inequities. The 53% global drop in deaths under the age of five from 1990 to 2015 reiterates that recent advancements successfully decreased child mortality and related issues.

This reaffirms that redirecting the link between child mortality and maternal education to a poverty reduction force is possible. Education is key to such a necessary development for mothers and their children.

– Cleo Krejci

Photo: Flickr

July 30, 2017
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2017-07-30 01:30:022024-05-28 00:03:28Inarguable Link: Child Mortality and Maternal Education
Developing Countries, Global Poverty

Three Causes of Poverty in Pakistan

Causes of Poverty in Pakistan
Pakistan’s economy fluctuates daily, and the nation’s progress is slow. The causes of poverty in Pakistan are innumerable, inhibiting economic growth and development, as well as preventing the poor from escaping poverty. The following are the three main causes of poverty in Pakistan.

Population growth
At 1.86%, Pakistan has the highest population growth rate in the world. By 2050, the country will surpass 350 million people. According to Commissioner Multan, division, the main reason for such high growth is the lack of family planning. Consequently, a large population has caused unemployment, poverty and lawlessness.

The annual abortion rate in Pakistan is 50 per 100 women, and nearly half of all pregnancies are unintended and more than half end in abortion. Pakistan’s maternal mortality rate (178 per hundred thousand live births) and infant mortality rate (66 per 1000 live births) are the highest in the world. These numbers show that Pakistani women would greatly benefit from improved health services, as well as greater educational and employment opportunities.

Largely uneducated populace
About half of Pakistan’s population is illiterate, and 7.26 million children are out of school due to poverty. According to an Institute of Social and Policy Sciences report, “Pakistan has the second-highest number of out-of-school children in the world after Nigeria because Pakistan spends the lowest GDP on education in South Asian countries.” The report claims this lack of spending is detrimentally affecting the nation’s school system.

Since many children are not in school and are impoverished, child labor is a major issue in Pakistan. The Human Rights Commission of Pakistan estimated in 2005 that there would be 10 to 12 million child workers in Pakistan by 2010-11. In reality, according to an All-Pakistan Labor Force Survey, this number almost doubled to about 21 million child workers.

Without education and job skills training, young people cannot adopt the skills needed for employment. Existing systems fail to address the skills demanded by employers, and this hinders economic growth and societal development. Without adequate education, people remain unemployed and do not have the opportunity to rise out of poverty.

Imbalanced Taxes
Pakistan’s tax system shows unfortunate proof of the government’s corruption. The system does not differentiate between varying levels of income, but instead focuses significantly on the poor. In fact, 80% of the tax revenue comes from the poor for services including utilities, petrol and mobile communication. Meanwhile, the taxes collected from the rich do not exceed five percent.

Obed Pasha, lecturer in public policy at the University of Massachusetts Amherst, told the Asia Times, “What we have is a completely broken system [in Pakistan], where the entire burden is on the poor and large businesses do not pay taxes at all.” Without income and employment opportunities, the poor cannot afford to pay high taxes, hindering their hope to rise out of poverty in Pakistan.

Out of every 10 Pakistanis, four are without the basic needs of life, which include food, shelter, education and healthcare. In order for Pakistan’s poor to rise out of poverty, they must have adequate resources. Only improved health and education services for the poor and just taxes can increase Pakistan’s economic mobility and development.

– Sarah Dunlap

Photo: Flickr

July 29, 2017
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Developing Countries, Global Poverty

Causes of Poverty in the Dominican Republic

Causes of Poverty in the Dominican Republic
According to the World Bank, the Dominican Republic has experienced one of the most remarkable growth seasons in the Caribbean in the last 25 years. Official estimates say that the number of Dominicans living in poverty dropped by almost six percent from 2014 to 2016. Although the country has made strides in the business front, they still have much to accomplish to stay competitive with other nations in the region.

A country is not just poor randomly, meaning factors contribute to the poverty rates in the country. Below are some of the causes of poverty in the Dominican Republic.

Increasing Population
The population of the country has been steadily increasing for decades.  It has risen by two million people since 2000 and is currently over 10.6 million inhabitants. A rising population also raises living standards, can make jobs harder to find, and, in some cases, can keep young women from finishing their education.

Improper Documentation
Dominicans of Haitian descent are the poorest in the country and usually live close to the Haiti-Dominican Republic border. Low incomes and poor living conditions keep them in a cycle of poverty, and social exclusion does not help the most vulnerable families. Dominicans of Haitian descent are usually undocumented or migrant sugar cane plantation workers, which means they do not receive aid from social assistance programs.

Ignored Agricultural Sector
In the past decade, the Dominican Republic government has focused on building the tourism and service industries, virtually ignoring the agriculture sector of the economy. Without government investment in the small farms so that they can provide for their families, many farmers have to look for jobs elsewhere. Farming technologies have begun to make their way to rural communities, which will potentially increase productivity.

Natural Disasters
Recent research has found that natural disasters (such as drought, extreme rainfall and flooding) are and will be the biggest factors in keeping people in poverty.

Because most developing governments invest money in responding to disasters as opposed to protecting citizens from the inevitable, the poorest citizens lose more when that disaster hits. Having policies that highlight disaster prevention can potentially save the country millions of dollars and give the poor more of a chance to survive.

These are just some of the causes of poverty in the Dominican Republic. Understanding the poverty of a country is an ongoing process, so staying updated is a way to ensure you know how to help a country when it needs it. The causes of poverty in the Dominican Republic can change with the economy, and hopefully, this beautiful country will continue moving toward stability.

– Emily Arnold

Photo: Flickr

July 28, 2017
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2017-07-28 01:30:532020-06-25 07:07:00Causes of Poverty in the Dominican Republic
Developing Countries, Global Poverty

Six Things to Know About Poverty in Pakistan

Poverty in Pakistan
Poverty is a global affliction affecting numerous countries in the developing world. Pakistan, a country in South Asia, is home to millions of people who live in extreme poverty. Poverty in Pakistan is on track to decrease, but there is still work to be done.

With approximately 185 million citizens, Pakistan ranks 147th out of 188 countries in the Human Development Index (HDI). Reports on poverty in Pakistan show that as much as 40% of the population–roughly the size of the population of Florida, California and New York combined–live beneath the poverty line.

The Multidimensional Poverty Index (MPI) report by the Pakistan Ministry of Planning, Development and Reform in June 2016 shows that 39% of Pakistanis live in multidimensional poverty. The MPI methodology, developed by UNDP and the Oxford Poverty and Human Development Initiative in 2010, uses a broader concept of poverty by reflecting people’s deprivations related to health, education and standard of living in addition to income and wealth.

 

1.  Regional and Provincial Disparities in Poverty in Pakistan

The report states that national poverty rates in Pakistan fell from 55% to 39% from 2004 to 2015. This is a strong decline; however, development across different regions of the country is uneven. Poverty in urban areas is at 9.3% as compared to 54.6% in rural areas. Similarly, great disparities exist across provinces, with the highest rates of poverty in the Federally Administered Tribal Areas (FATA) and Balochistan. The MPI report states that “over two-thirds of people in FATA (73%) and Balochistan (71%) live in multidimensional poverty. Poverty in Khyber Pakhtunkhwa stands at 49%, Gilgit-Baltistan and Sindh at 43%, Punjab at 31% and Azad Jammu and Kashmir at 25%.”

Some districts such as Qilla Abdullah, Harnai and Barkhan in Balochistan have more than 90% poverty compared to Islamabad, Karachi and Lahore, in which less than 10% of residents live in multidimensional poverty. The report also found that the decrease in multidimensional poverty in Balochistan was the slowest while poverty levels had actually increased there and in Sindh province in the past decade.

 

2. Corruption in Pakistan

Despite being the second-largest economy in South Asia, development is limited by entrenched poverty in Pakistan, social inequality, lack of access to social services and extreme corruption. The 2016 Corruption Perceptions Index by Transparency International ranks Pakistan 116th globally. Corruption in Pakistan is not a new phenomenon. Recent Panama leaks involving the Pakistani Prime Minister Nawaz Sharif’s three children are just one example: they owned offshore companies and assets not shown on his family’s wealth statement. This and other cases of corruption by political and military elites have made it impossible to alleviate widespread poverty.

 

3. Population Boom

Burgeoning population growth is another major issue that weighs down Pakistan’s socio-economic development. According to some reports, in the past 10 to15 years, the population of Pakistan has grown by more than 40 million, making it the sixth most populous country in the world. Another report found that Pakistan’s population increases by 1.8% per year. By that rate, it is feared that, if the nightmarish growth goes unchecked, the country’s population will be 245 million by 2030.

 

4. Development and Conflict

Pakistan is caught between the United States’ War on Terrorism in Afghanistan and an increasingly unstable relationship with India. Tackling poverty is important because economic instability and a lack of development can only lead to conflict and violence, domestically and regionally. In the past two decades, Pakistan has seen increasing violence at the hands of militant jihadists and Baloch insurgents. Rather than bettering the lives of common people by introducing broad-based socio-economic reforms, the Pakistani state uses excessive military force to “resolve” issues in the country’s northern and southwestern regions. Unending conflicts are another reason why it is difficult for development to take place.

 

5. Disproportionate Defense Spending

Most importantly, instead of allocating sufficient funds to address both acute and long-standing poverty, the country spends the largest amount of national expenditures on defense. A May 2017 report showed that “Pakistan’s defense expenditure in the next financial year (2017-18) will be around seven percent higher than it was in the outgoing year to Rs920.2 billion (USD$8.65 billion).” It was Rs841 billion (USD$7.9 billion) for the year 2016-2017. In contrast, Pakistan spends only 2.6% of its GDP on education, which is the lowest in South Asia.

 

6. Consequences of Poverty in Pakistan

Grinding poverty and lack of development fuel child labor, illiteracy, religious extremism and endless conflicts on massive scales. The Gross National Income per capita is only $5,031. Life expectancy in Pakistanis at 66.4 years and the expected years of schooling is miserably low at 8.1 years. These figures are among the lowest in the world.

The good news is that poverty in Pakistan decreased by 15 percent in the past decade, but, given the grim lows overall, this figure is less than encouraging. In order to alleviate poverty, policymakers need to focus on achieving the U.N. Sustainable Development Goals (SDGs) by 2030. Although it is a big challenge for an underdeveloped country like Pakistan, meeting the SDGs is important since they provide the best possible integrated way for inclusive growth, peace and development.

Finally, policymakers should also focus on addressing the poverty of opportunity. The poverty of income is a result of the poverty of opportunity. Poverty in Pakistan is a multidimensional problem requiring multidimensional solutions.

– Aslam Kakar

Photo: Google

July 28, 2017
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