Archive for category: Developing Countries

Information and stories about developing countries.

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Drones Help Combat Illegal Fishing in Developing Countries

Fishing in Developing Countries
The marine fisheries of many developing countries, which stand as a critical source of food and income for coastal communities, are under threat from illegal foreign fishing vessels that take advantage of the rich ocean resources that lie far from prying eyes. Illegal fishing damages livelihoods, the economy and the marine biodiversity of affected countries. However, advances in technology are offering new solutions to countries struggling to protect their oceans as the world begins to look toward drones to help combat illegal fishing in developing countries to reduce poverty and boost economic growth.

Illegal Fishing in Developing Countries

Exclusive Economic Zones (EEZs) are the areas of the ocean belonging to coastal countries. These large swathes of the ocean hold a multitude of opportunities to facilitate economic development. However, many countries do not have the resources or the capacity to monitor their EEZs, let alone fully utilize them. The costs of obtaining and maintaining fleets of coast guard vessels are extremely high and many countries have only a handful of vessels to cover the entire extent of their EEZ.

Illegal, unreported and unregulated fishing costs developing counties billions of dollars. Companies involved in these practices originate from countries such as China, Colombia and Spain.

In the fight against illegal fishing, countries are looking to technological innovations to provide faster, cheaper and more accessible methods of monitoring EEZs. Advances in technology are providing ways for countries to monitor illegal vessel activities in their EEZs not from the sea but from the sky.

Drones Provide Eyes in the Sky

Drones or unmanned vehicles (UMV) provide “eyes in the sky” for coast guards and fisheries organizations attempting to detect and prosecute illegal fishing vessels. The most significant benefit of drones is that the device can collect photographic, video and radar evidence of illegal vessels fishing in EEZs without the major resource requirements of sending a vessel out to make an arrest. Authorities can then use this as evidence for prosecution later.

The FishGuard Project

The Republic of Seychelles is one of the first countries to embrace this new technology and hopes to use drones to fight illegal fishing in the new program FishGuard.

The island nation of Seychelles is responsible for an enormous EEZ of almost 1.4 million square kilometers. The rich ocean resources of its EEZ have attracted hordes of illegal fishing vessels, including European fishing fleets targeting tuna and fleets from Sri Lanka targeting sharks.

Over the past 30 years, “illegal, unregulated and unreported fishing led to an over 60[%] decline in the main fish stocks, resulting in loss of livelihood and revenue for the majority of Seychellois fisherfolk,” according to a 2020 research paper by Malshini Senaratne. About 17% of the Seychelles’ population depends on the fisheries sector to derive an income.

ATLAN Space developed FishGuard, a technology startup creating drones with artificial intelligence. It hopes to aid Small Island Developing States (SIDS) in the fight against illegal fishing by providing low-cost intelligent technological solutions. ATLAN Space has provided Seychelles with drones to monitor marine areas, particularly the fishing hotspots. Each drone can cover 10,000 square kilometers. ATLAN Space will train the Seychelles Air Force to operate the drones while the coast guard will provide the vessels from which to launch the drones.

As part of the FishGuard partnership, a Norwegian analytical organization called Trygg Mat Tracking will provide fisheries with intelligence and analysis services and Grid-Arendal will provide Earth observation data. ATLAS Space has received funding from National Geographic for this pilot program. It plans to use the technology to combat terrestrial environmental threats such as illegal mining and deforestation.

Looking Ahead

For now, the Republic of Seychelles hopes that the drones will aid in the endeavor to keep its oceans safe from poachers of the sea. Maintaining legal licensing processes will provide the island nation with a critical and reliable source of income and will allow more effective management and protection of its vulnerable marine ecosystems. By combating illegal fishing in developing countries, the world can safeguard the livelihoods of the vulnerable people who depend on fishing as a means of income.

– Amy McAlpine
Photo: Flickr

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How Corruption in Developing Countries Impacts Poverty

Corruption in Developing CountriesIn many developing countries, corruption poses a major impediment to social development, economic expansion and effective governance. Corruption in these nations can occur in several ways, including bribery, embezzlement, nepotism and fraud. Weak legal systems, bad governance, a lack of transparency and poverty stand as some of the key factors that contribute to corruption in developing nations. According to the United Nations, corruption costs the world more than $2.6 trillion annually, which further undermines efforts to reduce poverty.

One of the consequences of corruption is that it can divert resources away from important social initiatives, such as health care and education programs. Moreover, corruption can prevent foreign investment and restrict a nation’s access to international assistance and support.

Addressing Corruption

The United Nations Office on Drugs (UNODC) says addressing corruption in developing countries requires a comprehensive approach that includes strengthening legal and institutional frameworks, promoting transparency and accountability and encouraging citizen participation. Governments can accomplish this by taking steps to strengthen anti-corruption legislation and regulations, increasing accountability in the public sector and giving civil society organizations and the media more authority to observe government operations.

International organizations have created anti-corruption conventions and agreements that encourage countries to combat corruption. For example, the Extractive Industries Transparency Initiative (EITI) seeks to address the key governance issues and provide transparency in the extractive sectors such as oil, gas and mineral resources.

Continued Struggles With Corruption

According to Transparency International’s 2022 Corruption Perceptions Index (CPI), which measures perceptions of corruption in the public sector of 180 countries and territories, many developing nations continue to struggle with corruption. The CPI uses a scale of zero (extremely corrupt) to 100 (extremely clean) to measure this.

“The global average remains unchanged for over a decade at just 43 out of 100” on the CPI scale. Furthermore, 26 nations now have the lowest scores ever noted and more than 66% of nations have received ratings below 50. Across the world, 155 nations have barely progressed in reducing corruption or have seen a deterioration since 2012 despite sustained efforts. The 2022 CPI, therefore, shows that most countries are failing to reduce corruption.

Efforts to Fight Corruption

Civil society organizations and the media play an important role in exposing corruption and holding government officials accountable. Many countries have worked to strengthen civil society and media engagement in anti-corruption efforts.

International aid and support can help countries build the capacity to address corruption by providing technical assistance, training and financial support.

There are many non-governmental organizations (NGOs) that are actively working to combat corruption in developing nations:

  • Transparency International: Transparency International is a non-governmental organization that focuses on combating corruption and promoting transparency in government and business internationally. It began its journey in 1993 with a Secretariat in Berlin, Germany. The organization works to raise awareness about the negative effects of corruption on society, promote accountability and integrity and advocate for reform and policies that will promote transparency and good governance.
  • The Accountability Lab: The Accountability Lab focuses on building networks of change-makers who work to promote accountability and good governance in their communities. The organization provides training, mentoring and resources to these individuals to help them develop their skills and implement such projects effectively.
  • The International Center for Not-for-Profit Law (ICNL): The ICNL supports governments and civil society organizations to promote good governance, enhance transparency and establish legal frameworks. It provides legal advice and technical support. The ICNL supports the development and implementation of laws and policies that would enable civil society to thrive.

Prioritizing Anti-Corruption Efforts

Corruption remains a significant challenge in many developing countries and is a major obstacle to economic growth, social development and good governance. It continues to undermine public trust in government institutions while perpetuating poverty and inequality. Considering the links between poverty and corruption, anti-corruption initiatives designed to address issues of economic growth, income inequality, governance capacity, government services in health care and education and public trust in government are likely to reduce corruption along with poverty.

– Lauryn Defreitas
Photo: Flickr

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The Benefits of Investing in Developing Countries

Investing in Developing Countries
Investing in developing countries holds the power to enhance the lives of its citizens significantly. The right investments can improve infrastructure, provide access to essential services, increase amenities and boost overall human development. These investments positively impact health, education and economic opportunities.

Sustainable Energy Fund for Africa (SEFA)

The Sustainable Energy Fund for Africa (SEFA), which the African Development Bank (ADB) manages, serves as a prime example of the benefits of investing in developing countries. Established in partnership with the government of Denmark in 2011, SEFA provides catalytic finance to unlock private sector investments in renewable energy and energy efficiency, striving to increase access to affordable, reliable, sustainable and modern energy services in Africa.

High-income governments and organizations have made contributions to SEFA. Through its efforts to develop green mini-grids, finance green energy programs and establish blended-finance initiatives for small-scale renewables, SEFA actively contributes to the growth of renewable energy in Africa.

This investment in renewable energy projects not only enhances access to energy and stimulates economic growth, but also generates job opportunities in developing countries. This helps raise living standards and reduce poverty, while also advancing the achievement of the Sustainable Development Goals of “No Poverty” and “Affordable and Clean Energy.”

Increasing Efforts

High-income countries should increase efforts towards promoting economic growth, reducing poverty and inequality and closing the gap in achieving the Sustainable Development Goals (SDGs) by investing in developing countries. Despite the growth of sustainable finance, most of it remains in high-income countries, leaving lower-income countries in need of funding. To bridge this gap, high-income countries should remove barriers to financing access in developing countries and allocate more financing towards SDG investments.

The U.N. Conference on Trade and Development and the International Monetary Fund (IMF) predict that the “SDG financing gap could reach $4.3 trillion per year from 2020 to 2025,” a significant increase from previous estimates, according to OECD.

OECD expects the government revenue of developing countries to decrease in 2022 and 2023, especially for middle-income countries, resulting in a yearly decline of $95 billion and its recovery will likely be slow, potentially not reaching pre-pandemic levels before 2030.

Companies could reap numerous benefits from foreign investment in developing countries, such as increased competitiveness, favorable productivity spillovers, access to new technology, market expansion and improved workforce training and qualifications leading to higher wages and employment.

Investments in job creation and training could provide an economic boost to communities by creating jobs, driving demand for goods and services and enhancing the skills of the workforce. Furthermore, foreign investments could lead to improved infrastructure, access to basic services and amenities and overall human development.

Boosting the Integration

Investing in developing countries opens the possibility of boosting their integration into the global economy through the enhancement of foreign trade flows. The growth of international networks of affiliated enterprises and the growing significance of foreign subsidiaries in multinational companies’ strategies provide greater access to import and export activities. Thus, developing countries that embrace international trade are more likely to reap the benefits of foreign direct investment (FDI).

In today’s interconnected and globalized world, it is crucial for countries to take advantage of the potential of foreign investments in developing countries. By investing in these countries, companies can reap the benefits of economic growth and development while promoting sustainability for all. These investments provide access to new markets, resources, technologies and capabilities that drive economic growth, create jobs and build local infrastructure. Additionally, foreign investments are a key source of financing for sustainable development initiatives such as renewable energy projects or environmental protection programs.

By investing in developing countries, companies not only benefit from increased economic growth but also play a crucial role in global sustainability efforts.

– Nkechi First
Photo: Flickr

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The Medicalization of Poverty Induced Mental Health Illnesses

Mental Health Illnesses
As the number of people with mental health illnesses increased in recent years, mental health has become the center of much discussion, with the highest rate among lower-income countries. A World Health Organization (WHO) report found that more than 80% of depressive disorders occurred in low to middle-income countries. Poverty, unemployment and other factors that people commonly associate with poverty, such as alcoholism, make the risk of depression higher. Many who develop mental health struggles go on to seek appropriate treatment for their symptoms from doctors and medical professionals, where available. On the other hand, treating the cause of their distress would arguably be more effective.

Living in Poverty: The Biological Stress Response and the Effects on Mental Health 

The neurological effects of poverty are already visible in infancy, with diminished brain development seen among children from low-income households. Meanwhile, the Anxiety and Depression Association of America (ADAA) reported that poverty can lead to ample detrimental physiological responses, including increased blood pressure and cortisol levels. Over time, a build-up of these responses can disrupt brain function, prompting long-term physical and mental health ramifications.

A 2015 report by the Joseph Rowntree Foundation (JRF) found that schizophrenia and depression have a higher prevalence amongst those with lower socioeconomic status. Alcoholism and other substance abuse had a stronger association with those who lived in poverty for a long time.  

Mental Health in Low-income Countries 

What many may consider a disease that plagues the wealthy, the largest proportion of global mental health sufferers resides in the countries with the lowest incomes. Those living in poverty, with less educational access, and who struggle to acquire basic needs are at a greater risk of developing mental disorders. This means that the relationship between poverty and mental disorders resembles a vicious cycle in low to middle-income countries.

The lack of available mental health resources only further exacerbates this problem, with less than 1% of these countries’ budgets invested in mental health. Moreover, in the communities, there is a higher level of taboo surrounding mental health illness, leading to a lack of clarity and understanding.

Treatment: The Symptom, Not the Cause 

Low-income communities have a higher proportion of antidepressant users in comparison with those of higher income. A U.K. study that the DeStress Project conducted revealed that individuals living on Universal Credits and struggling with the distress from poverty reported resorting to medication as a means to legitimize their suffering, as well as being made to feel as though the cause of their grief was pathological, not systemic. Despite prescribing antidepressants, one doctor reported knowing in their “heart of hearts that it’s not a medical problem.” 

CBM UK: The Mental Health Charity Helping the World’s Poorest 

CBM U.K. has been working to help the lives of those suffering from mental health illnesses in the world’s poorest countries for more than 15 years. In 2017, CBM merged with the mental health charity BasicNeeds which only increased its technical capacity and reach. The charity aims to improve access to mental health resources such as therapy and medication, eradicate stigma and taboo surrounding mental health as well as train local communities to support those with mental health illnesses in rural and non-developed areas. In 2022, CBM U.K. gave 27,000 people support for mental health conditions, and the pandemic has enabled 2,500 medical professionals to provide support.

Looking Ahead

Nonetheless, treating mental health illness in poorer communities only addresses the symptoms rather than the cause. Solving poverty would reduce the number of cases of mental disorders and consequently eradicate the need for the unnecessary cost of prescriptions.

– Genevieve Lewis
Photo: Flickr

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Transnational Companies: The Good and The Bad

Transnational CompaniesA transnational company is a global company that has factories and offices in different countries around the world. The headquarters are usually in advanced countries and its factories and manufacturing facilities are in less developed countries. Most of the transnational companies have home headquarters in Western Europe, Japan or the United States. Suppliers can be anywhere in the world depending on the necessary goods. However, companies usually set up their manufacturing centers in places where labor is cheap to keep operating costs low.

The operation of transnational companies in less developed countries where rates of poverty are high can be helpful in aiding people to break out of the cycle of poverty, but the risks of exploitation and low wages are still present.

Advantages

  • Creating jobs for the local population – Undoubtedly, transnational companies create jobs for the local population; they account for at least one-fifth of total paid employment in manufacturing in a number of developing countries. The creation of more and more jobs not only boosts the economy of the country but also provides local workers with a stable income, albeit that pay is low. Furthermore, these jobs help in improving the skills of its employees, which can then be transferred to future jobs and taught to others in their communities.
  • Economic growth for the country – Transnational companies bring much-needed money into a developing nation. Although most of the profits do return to the company’s country’s headquarters of origin, the local economy does benefit. By boosting business activities in the country, transnational companies contribute to economic growth and development. They could also act as growth poles for other similar companies by encouraging them to locate to that country, thus bringing in even more economic support.
  • Developing infrastructure and technology – Developing countries do not have sufficient resources needed to boost research and development, leaving them technologically behind. Transnational companies however bring in technology and knowledge that the host country does not possess, consequently furthering their development. They are a source of inventions and innovations. Also, infrastructure in the ways of transport links, airports and services are also developed as a result of transnational companies.

Disadvantages

  • The exploitation of workers – Even though transnational companies do provide employment opportunities, they also can exploit the employees. The minimum wage rate for the workers is very low when compared to the work that they complete and the long hours spent, commonly with little or no breaks. The income that workers receive may be stable, but it is not enough to survive on, let alone enough to live a decent quality of life. In a desire for cheap labor, working conditions may also be poor and sick leave that workers are entitled to may be refused.
  • Environmental damage – Transnational companies often receive critics for their harm to the environment. The use of cheaper, non-renewable resources limits sustainability and the burning of materials such as plastic and rubber pollutes the environment. Developing countries need environmental sustainability since for many their health and livelihoods greatly rely on the natural environment and the risks of air and water pollution further diminish their development.

H&M in Ethiopia

One example of transnational companies operating in a less developed country are the textiles and fashion companies such as H&M, Guess and others in Ethiopia. They create job opportunities for local people and particularly for women. However, as mentioned above, the risks of exploitation are prevalent. Garment workers in Ethiopia are among the lowest paid, with a 2019 study from the Center for Business and Human Rights reporting that they have an extremely low pay of just $26 a month. This does not cover basic needs thus not enabling the workers to live a decent quality of life.

There are several NGOs who work towards tackling exploitation in the garment industry; one such example is CARE International, one of the biggest defenders of workers’ rights in all areas, including the fashion industry. It currently has work going on in 95 countries around the world, reaching 56 million people directly via approximately 1,000 projects and indirectly working towards 340 million lives globally.

The Overall Impact on Poverty

So, transnational companies do provide jobs and boost a country’s overall development, but at what cost? There are other ways to help local workers in improvising their livelihoods without the risk of exploitation and capitalist benefits. One such example of this is Farm Africa, a more sustainable and locally oriented initiative. Farm Africa is a charity that helps to reduce poverty by helping local people in eastern Africa to earn more from their produce. Working in DR Congo, Ethiopia, Kenya, Tanzania and Uganda, Farm Africa works to boost the economic welfare of the people, whilst also ensuring environmental sustainability, thus protecting their environment for generations to come.

For a transnational company to be effective, it would need to involve the local people, not just use them for cheap labor to boost its own profits. It is imperative for an initiative to tackle poverty to be sustainable not only environmentally, but also socially and economically.

– Ruby Wallace
Photo: Flickr

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Minecraft: Building a New Reality Via the Digital World

MinecraftWhen thinking of Minecraft most people will associate it with kids playing something akin to digital Legos, building worlds and if everything goes according to plan, defeating the Ender Dragon. At its core, this view effectively captures the game at the surface level. Partnering with U.N.-Habitat, Minecraft developer Mojang has harnessed the game concept and applied it to sustainable solutions for developing public space and addressing global Sustainable Development Goals (SDGs).

Since 2012, the aim has been to integrate Minecraft into urban planning on a local level, prioritizing the involvement of community members, particularly those that lack a voice in public development initiatives such as women, children, refugees and the elderly. The space they are working with is for the people and designed by the people. Behind the success of the Block by Block methodology lies the simplicity of Minecraft, providing an exceptionally effective lens for visualizing a three-dimensional environment that an untrained eye can make sense of, and propter hoc contribute to.

Block By Block

Pilot ventures in Nairobi and Mumbai in 2013 evolved the methodology into what it is today, built on the central tenet of collaboration. Block by Block provides community residents with the training, tools and platforms to develop and share their ideas on how best to transform public space. The exchange of ideas broadens the considerations of all those involved in the collaborative planning process.

Co-created public spaces come into existence, designed by different people and as such take into consideration the needs and concerns of all those involved in the process, resulting in a ubiquitously accommodating locality. Furthermore, what develops as a by-product is a shared sense of ownership and responsibility for the area, increasing the likelihood of maintenance and endurance, whilst simultaneously strengthening the bonds of the community.

Block by Block selects projects based on financial sustainability, accessibility and potential impact. They tend to target youth empowerment, refugee rights, climate change, accessibility, cultural heritage, social inclusion and human rights involving health and safety.

Kosovo

Following the success of a 2015 project in Pristina, Kosovo, that saw the transformation of an abandoned marketplace into a vibrant public space with a range of facilities including children’s playgrounds and Kosovo’s first skatepark, the Block by Block methodology was implemented once more in Mitrovica, some 40 km north of Pristina.

Located on the banks of the Iber river and divided by The New Bridge, the administrative center of the district is burdened by the ethnic divisions between the Serbian and Albanian communities on either side of the river. A symbol of division, the bridge separates the 80,000 Kosovo Albanians living in the north and the community of 20,000 Serbians in the south. In 2016, Block by Block hosted a workshop bringing together residents of both communities to explore ways how to transform the area and collaboratively design their ideas using Minecraft. The approach aimed to negate the divisions between the communities, changing social attitudes towards the city’s unity through democratizing urban planning’s development process. Construction began in 2017, focused on community interaction and urban redevelopment and has had knock-on effects on intercity cooperation to bring about enduring changes across Kosovo’s socio economic landscape.

Nepal

Dey Pukhu, literally translated to “state pond,” as found in the Kirtipur settlement of the Kathmandu Valley in Nepal, is as one would expect, a pond, typically used for daily gathering and steeped in tradition, having been designed for socio-religious functions. Rapid urbanization across the area threatened the water systems and affected the use of Dey Pukhu for social and traditional gatherings, with other public spaces similarly experiencing some form of deterioration as well. In 2013 Block by Block selected it for restoration with the aim to sustainably revitalize the area and for the methodology to gain traction and lead to further development initiatives across Nepal.

Gathering local stakeholders to propose ideas for restoration and development, the initiative noted the rise in youth engagement with the project and the notion of public space. As Pontus Westberg of U.N.-Habitat outlined, the young people’s confidence, effort and pride in their work was perhaps the most rewarding outcome from the project. The positive response led to further development programs put in place across the Kathmandu metropolitan area.

Noteworthy is the 2015 Kirtipur project that proposed the development of a site with a school, temple and a water system amidst large open areas of green and vegetation. Following designs and finalized models of the site, the earthquake hit Nepal in April 2015, delaying implementation. U.N.-Habitat allocated $50,000 in emergency response, repairing a damaged local school and providing essentials for survival including water tanks and emergency shelter. By June 2016 the project was running again, with a trash-covered hillside converted into an open park with recreational space and access to clean water as well as a Public Space Revitalisation Plan put in place for the entire municipality of Kirtipur.

Successful Stories

The Block by Block applied its methodology to other cities across the Kathmandu Valley and is active in over 35 countries. The examples above have set off a chain reaction in the areas of implementation. More recent projects include the likes of public gardens as safe spaces for women and children in Beit Lahia. The successes are a momentous use of technology for the public good and make one wonder what other global concerns can have a solution in something as simple and commonplace as video games.

– Bojan Ivancic
Photo: Unsplash

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How AI Technology is Helping Developing Nations

AI technology
AI technology is all around and many use it without even knowing it. However, many people in developing countries cannot access this technology without help. WorldData has reported that there are 152 developing countries worldwide, with a population of 6.69 billion. The entirety of Central and South America and Africa are developing nations, along with the majority of Asia and other island states. About 9% of the global population is living in extreme poverty, earning less than $1.90 per day, and living below the higher poverty line. More than 20% earn less than $3.20 per day and more than 40% earn less than $5.50.

What is Artificial Intelligence?

Artificial intelligence (AI) is basically coding and software that help people in daily life. While people know it best for its role in science and medicine, it also has a role in the productive robots in factories, the voice recognition in smartphones, the software that detects online viruses and the drones that deliver packages and help farmers. While there is no official definition for AI, it is typically a man-made machine that does things humans cannot do in a timely manner or at all. The term “artificial intelligence” or “AI” was created in 1956 at a conference in New Hampshire, the United States, but AI machines existed before that.

How is AI Technology Helping Developing Nations?

Agriculture. AI technology supports many different aspects of agriculture, particularly in Africa. It helps farmers take care of their crops by detecting when is the best time to plant and harvest. It can also help detect when crops are sick. For example, mCrops is a form of AI that helps diagnose crop diseases in Uganda. Additionally, another AI that is helpful in agriculture is drones that spray pesticides on sick plants. However, they can also spray water and help plant new crops in the healthiest parts of the ground. An example of this is Aerobotics, which works in Malawi, Zimbabwe and Mozambique.

Education. AI technology can help developing nations, especially in rural areas, with education because it is effective for illiteracy, coursework and general school subjects, and can alleviate the short supply of teachers and supplies using tutoring technology. Sites like Dapito, Eneza Education and Tutorful help people connect around the world. For example, they teach English to non-English speakers, customizing content and lessons for a specific student. Students in developing nations are intelligent, but they lack qualified teachers and are sometimes unable to travel to school. For example, travel might not be available when there are floods and when they are sick, especially when many schools are far away.

Recognition. This method of AI includes location and supports many fields, such as health care, natural disasters, deliveries and shipments, and more, generally by the use of drones. An earthquake hit Nepal in 2015 where the United Nations Office for the Coordination of Humanitarian Affairs (UNOCHA) used AI in relief to locate damage from social media posts, mobile devices, satellites and multiple other devices. Currently, the World Wildlife Fund uses drones in Kenya to arrest wildlife poachers, and UNICEF is building a machine to detect malnutrition using facial recognition.

AI Technology and Health Care

AI technology is helping globally, especially in rural countries in Africa. It is constantly undergoing development for health care but relies on the government, NGOs and medical professionals to authorize machines for medical use and support. AI can diagnose patients, recommend treatments and discover global viruses. For those living in rural and developing nations, AI is lifesaving as it can locate injured people which a normal navigation or GPS system cannot do, and send medicine and medical supplies via drones. It also provides qualified doctors to countries with a lack of medical professionals and to those who need a second opinion on diagnoses, treatment and surgery. This reduces costs, manual labor and mortality rates and develops education in health care and literacy.

In 2022, the University of West Scotland developed new AI technology that enables lung diseases to be identified faster with an accuracy of 98%, meaning diseases are less likely to spread and more people will be correctly diagnosed before a disease progresses and can receive treatment. Further research has found that it can detect COVID-19 cases. This technology is especially useful in developing nations during winter periods especially and globally in general. This will not replace human labor but will support hospitals. This AI technology cuts short the long wait and use of CT scans, blood tests, x-rays and ultrasounds, cutting down further costs and time taken to identify disease and illness.

– Deanna Barratt
Photo: Wikimedia Commons

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How Fiscal Policy can Reduce Poverty

Fiscal policy
In developing nations, as well as nations recovering from a crisis such as the COVID-19 pandemic, fiscal policy is an instrumental tool in revitalizing the economy and alleviating poverty levels. The policies are more than simply “good” or “bad” economics as they are key indicators of a nation’s true political priorities.

In low and middle-income nations, foreign aid and debt relief are invaluable in uplifting their economies. On the other hand, the contributions cannot be fully effective without an effective fiscal system. According to the United Nations, a good fiscal policy centered around poverty reduction, reconstruction and growth will focus on raising the growth rate and fostering lasting economic stability. 

Rising Growth Rate

The International Monetary Fund (IMF) emphasizes that “economic growth is the single most important factor influencing poverty, citing a recent study of 80 countries that revealed that the income of the bottom one-fifth of the population increased in exact proportion with the overall growth of the economy as measured by per capita GDP. In countries recovering from crises, a rising growth rate is one of the most effective ways for an economy to bounce back.

Key Fiscal Policies that Can Promote Economic Growth

  • Shifting Government Spending Away from Subsidies: The World Bank categorizes subsidies as a short-term solution and has indicated that they are typically politically popular because the benefits distribute widely. On the other hand, the World Bank reported that “about half of spending on energy subsidies go to the richest 20%,” as they tend to consume more energy and receive more benefits, leaving the lower-income households with little to show.
  • Investment in Cash Transfers as an Alternative to Subsidies: There is increasing data showing that direct cash transfers are a better solution to important long-run investments within households, such as education. These transfers are more beneficial to the bottom 40% and can stimulate economic activity within communities, and indirectly increase government revenue in both the short and long-term through higher tax revenue. 
  • Implementing a Progressive Tax Structure: A progressive tax structure enables governments to increase welfare benefits, such as unemployment, food stamps and housing benefits to the poor. Tax revenue sources do not change rapidly and improved progressivity in personal income tax, corporate, property, health and carbon taxes offer feasible ways to raise revenue without worsening conditions for the poor. Furthermore, nations may consider indirect taxation, as some of the above methods may not be as effective due to the informality of work in certain economies. Progressive tax structures are most effective in upper-middle-income countries. 
  • Having a National Minimum Wage: National Minimum Wages directly benefit the lowest-paid workers in an economy and reduce wage inequality. A universal basic income (UBI), wherein all citizens receive a weekly benefit to ensure a minimum income guarantee may also be effective.

Economic Stability

Prioritizing spending with long-term impacts is vital in creating a self-sustaining economy that alleviates poverty. Good policies will vary in different country contexts while acting with the future in mind even in crises, despite the fact that the benefits will come to fruition later. Below are some fiscal concepts to stabilize a nation after a crisis and to better prepare for any future challenges. 

  • Debt management is essential to maintain the “fiscal space” for crisis recovery and stabilization. Regulatory reform for financial markets, debt transparency and the implementation of a common blueprint for debt relief and restructuring are useful tools for properly managing national debt. 
  • There are many elements that can equip countries with a strategic plan for an unknown future crisis. First, expanding the reach of automatic stabilizers, such as employment guarantee schemes in nations with a large informal sector, in case of crisis. Setting up adaptive cash transfer programs that can be scaled up when necessary is also a good preparatory measure. 
  • Research and improved data, particularly on the costs and ramifications of certain policy implementations, are essential to maximizing the effectiveness of these policies. Long-term evaluations and research can provide decent indications of long-term outcomes, which is important in deciding which policies are best for unique country circumstances. 
  • In developing economies, a focus on education and diversification of the economy from agriculture to manufacturing fosters a more independent and stable economy. Increased government spending on education cultivates a higher-skilled workforce, and a push towards manufacturing pushes economic development, though proper skills and infrastructure are necessary to accomplish this.

Looking Ahead

Fiscal policy shaped around economic growth and the reduction of inequality has the potential to make great strides toward minimizing poverty. There are limits to the types and degrees of these policies in each country. Therefore, other national policy reforms implemented in tandem with economic policies lead to the best outcome in stimulating growth. Regardless of fiscal policy, foreign aid and international cooperation are invaluable in reducing poverty levels in low-income nations and around the globe.

– Carly Ryan Brister
Photo: Flickr

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New technologies in South Sudan

new technologies in South SudanTechnology increasingly offers more and more solutions to help reduce poverty across the globe. Considering South Sudan’s unpredictable climate and scarce resources, new technologies in South Sudan can provide a gateway of opportunities and security to the locals. This can be through new farming methods and equipment, schooling, banking and monetary management.

The Problems in South Sudan

South Sudan’s current climate is posing many challenges to its poverty-stricken population. The World Bank describes poverty as ‘ubiquitous’ across South Sudan, with it estimating that two-thirds of the population requires humanitarian assistance.

Estimates stated that floods are affecting up to 1 million people every year because the floods have forced many to evacuate their homes. This has had an impact on education with floods affecting 100 schools. As a result, more than 60,000 students have reduced access to education.

In the short term, people in South Sudan have had limited access to nutrition and health care. This has contributed to the fact that 60% of the population is facing malnutrition.

It is not just flooding that impacts South Sudan. Excessive drought, temperature changes and unpredictable rainfall have all damaged day-to-day life in South Sudan. Droughts have resulted in food insecurities leading to a loss of livestock and crops.

This is severely impacting the economy in South Sudan considering that 95% of the population work in sectors that rely on the climate. This includes agriculture, fishing and forestry resources.

In the 2020-2021 period the South Sudanese economy reduced by 5.4% due to lower exports of oil and agricultural output. This is having a large impact on the living conditions of individuals in South Sudan.

The Conflict in South Sudan

As a result of the unpredictable climate in South Sudan, many have had to migrate. In fact, up to 4 million people as of 2022 remain displaced due to climate-induced dangers – 1.6 million internally and 2.3 million in neighboring countries.

Migration has led to enhanced homelessness across South Sudan. This has reduced living standards and increased disease. A lack of infrastructure has led to more exposure to malnutrition, mosquitos and climate-induced diseases such as malaria and cholera.

Serious conflicts over resources in South Sudan between groups, especially in areas of extreme drought, has led to livestock raiding and exacerbated the displacement of people into concentrated areas making resource scarcity even more serious.

Furthermore, the large weaponry market that has spread throughout the territory to the failure of the South Sudanese government, fuelling the problem and resulting in wider political instability in South Sudan. Resource conflicts have increasingly become a method to gain political support and power.

UNHCR’s Efforts

To solve the issues of conflict and lack of institutional and infrastructural support in South Sudan, the resource and climate problems require mitigation and resolution. Technology could be a solution, but South Sudan has limited new technologies presently.

First, and foremost, technology can make farming more efficient and sustainable. For example, the United Nations High Commissioner for Refugees (UNHCR) is trying to develop sustainable and resilient infrastructure such as dikes and drainage systems to try and appease the problems in South Sudan. Moreover, UNHCR has provided flood-tolerant seeds and training for locals. To help with droughts, it has introduced new irrigation systems and set up tree nurseries to regrow forests. In Maban, five tree nurseries underwent establishment in four refugee camps. These activities are introducing new skills and opportunities for the locals, that are more resistant and malleable to the changing climatic conditions. Other technologies include high-efficiency cooking stoves, reusing agricultural waste and using solar energy to extract water from boreholes.

How the US is Helping

Next, greater investment into education and human capital development is vital for presenting more opportunities for the locals to be able to use new tech. The U.S. has provided more than $117 million to South Sudan on top of humanitarian aid. This is helping the government to invest more money into their infrastructure, allowing more to access education.

The U.N. has also been providing increased support across Africa. It is important that this continues as, alone, South Sudan does not have the fiscal capacity to create a stable socioeconomic climate.

A further key area for South Sudan is taking full advantage of technology to provide education to rural areas that otherwise do not have access. This seems to have had little traction so far but could prove to be a very advantageous development.

Lastly, introducing these new technologies and skills in South Sudan will help to address the migration problem, reducing the levels of migration and allowing the population to become more dispersed again. This will hopefully help to reduce conflict in South Sudan as well.

Looking Ahead

Behind this shift to new technologies in South Sudan in the long run, support through charity and initiatives will help to smooth the transition. For example, to help with conflicts UNHCR has started several peace initiatives in Eastern Equatoria to reduce further conflict between herders and farmers, and to incentivize the use of new technology in pastoralists’ original locations, rather than internally migrating.

As a result, it becomes clear that South Sudan can reduce conflict across the country if it introduces more sustainable technology to help with the unpredictable climate. This requires the support of other countries and the cooperation of the South Sudanese government if this is to successfully reduce poverty.

– Reuben Cochrane
Photo: Flickr

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New Markets Boom in Dharavi

DharaviMumbai’s Dharavi is one of the world’s largest slums and is home to roughly 1 million people since it was established in 1884. Dharavi was initially inhabited by fishermen and later extended to migrant workers from south Mumbai. The slum’s conditions are dire and inhabitants have suffered from the spread of numerous epidemics and diseases due to the lack of sanitation, drinking water, roads and basic healthcare services.

Hidden Markets

Despite its harsh economic and social conditions, Dharavi is close to Mumbai’s two main suburban rail lines, which has made commuting to work easier for workers. Over the years, Dharavi has also developed a large number of thriving small-scale industries that produce embroidered garments, quality leather goods, pottery and plastic. Furthermore, there are estimated to be 5,000 businesses and 15,000 single-room factories located within Dharavi, making it a prime entrepreneurial realm with potential revenue that can total anywhere from $700 million to $1 billion USD a year.

Many of these initiatives are undertaken by women living in the slums, many of whom have taken the lead and become the main breadwinners of their families. In fact, out of the 65,000 rural markets in India, almost 75% are run by women.

Renuka Shinde’s Story

One such example is Renuka Shinde, who was forced to take up the role of the breadwinner after her husband left her and their three sons. Renuka traveled to Kolkata from her home in Dharavi to buy handloom saris to start her small business. At the end of a month’s hard work, Renuka brings home Rs 3,000 or roughly $48 by selling saris and other garments around Mumbai. Renuka makes a profit of Rs12,000 ($200) a month and this tends to increase during Indian festivals such as Diwali and also during wedding seasons.

Pushpalata Chittikindi’s Story

Another example is Pushpalata Chittikindi, who is left to fend for her two sons in the absence of her alcoholic husband. Pushpalata started making metal buckles and sold them piece by piece to nearby factories in the neighborhood. The businesswoman also worked as a cook and cleaner in her spare time. Following the advice of her friends, Pushpalata took a loan to set up her machine but lacked financial knowledge and experience with banks. Pushpalata took the help of a local NGO that gave out small loans to support local women.

With help from the NGO, Pushpalata started making Rs 250, about $4, per day. The businesswoman later pivoted to buying biscuits and snacks from wholesale stores and selling them from her home to nearby school kids. With the money she earned, Pushalata was able to pay off her loans in a year and rented a small store nearby, which she later named after her son, Sagar.

Women in Poverty

The biggest challenge to women looking to follow in the footsteps of Renuka and Pushpalata is access to credit – a first step to overcoming their financial struggles. In India, the poverty rate for women ages 25 to 34 was roughly 12% in 2020 and is said to increase to 14% following the dire effects of the COVID-19 pandemic. On the other hand, Indian men in poverty are roughly 100 men to every 120 women in poverty. The statistics highlight that there is disparity even within the parameters of poverty and that Indian women need support and guidance in their economic endeavors.

Addressing Credit Challenges

Thanks to the Vandana Foundation, an organization that provides low-interest micro-loans to female entrepreneurs in Dharavi, this challenge has become easier to overcome. In addition to the Vandana Foundation, many other NGOs such as the Light of Life Trust, Human Capital For Third Sector and Catalyst For Social Action, also play a big role to support India’s entrepreneurs and inhabitants.

A Take-away from Dharavi

The story of these women stands to show that although we tend to underestimate the power of small-scale local entrepreneurs, they are capable of making a considerable impact. If given the opportunity and starting resources, people have the power to change their financial circumstances and thus their lives, even in slums like Dharavi. There are hidden markets similar to the ones in Dharavi all over the world. By understanding where the opportunities lie and how to best support them, we can help people to help themselves and their communities.

– Samyudha Rajesh
Photo: Flickr