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Archive for category: Developing Countries

Information and stories about developing countries.

Children, Developing Countries, Development, Global Poverty

The Future of India’s Development

Future of India’s DevelopmentCelebrating India’s 75th anniversary of independence from British governance, Prime Minister Modi announced on August 15, 2022, that the country would be working toward becoming a developed nation within the next 25 years. In addition, he promised to lift millions of Indians out of poverty while cracking down on “corruption and nepotism” within the government. With more than 1.4 billion people in India, accomplishing these tasks is a monumental challenge, but one that Modi believes is achievable for the future of India’s development.

Striving for Development

Although there is no single metric that defines a country as developed, ways of assessing development include factors ranging from income per capita to electricity usage. Generally, developed countries will have lower rates of unemployment, higher levels of literacy and industrialization, a diverse economy and high gross national income (GNI). With a GNI of $2,170 in 2021, India holds the status of “lower middle income” according to the World Bank. However, that figure once stood at $440 in 2000, showing a clear upward progression of moving toward the GNI of more developed nations.

India also has a broad network of poverty relief and social welfare programs. One example is the Public Distribution System (PDS), which costs close to 1% of India’s GDP and distributes grain to low-income families, according to the World Bank in 2011. Introduced in 2005, the Mahatma Gandhi National Rural Employment Guarantee Scheme ( MGNREG) aims to provide up to 100 days of paid work per year for impoverished adults in rural areas. Lastly, through the Rashtriya Swasthya Bima Yojana (RSBY) program, India’s impoverished receive health insurance coverage. By 2011, RSBY served more than 70 million Indians, a huge success given the country has very few insurance programs for its labor force.

Program Shortcomings

Unfortunately, India’s development suffers from logistical issues and mismanagement. According to National Sample Survey data from 2004-2005, grain distributed under the PDS reached less than half of the intended recipients. The cause of this problem is “leakage and diversion of grains,” leading experts to suggest cash transfers that directly give families an equivalent value.

Other programs like the MGNREG also struggle with providing benefits, with fewer than 100 days of work being available, particularly in rural areas. Prime Minister Modi addressed these issues during the August 15 celebrations, promising to curb inefficiencies within the government and fight against corruption.

A Vision for India

Modi’s vision for India’s future development also includes achieving “excellence in science and technology” while attaining “food and energy security.” India’s minister of power, R.K. Singh, said on August 5, 2022, that India is ahead of many developed countries in progress toward achieving clean energy.

Furthermore, India’s strong relationship between itself and the United States is touted as a catalyst for growth, with U.S. President Joe Biden stating that the two countries would work together to bring “prosperity and security for our people.”

Transforming India into a developed nation is a massive undertaking, one which will require an incredible mobilization of human and economic resources. With 21.9% of the population living under the national poverty line in 2011, according to the latest available data from the World Bank, substantially reducing this statistic would be a major humanitarian victory. The country’s future 100th anniversary holds massive potential and the opportunity to showcase India’s development.

– Samuel Bowles
Photo: WikiCommons

September 14, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Naida Jahic https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Naida Jahic2022-09-14 07:30:092022-09-13 11:32:55The Future of India’s Development
Developing Countries, Global Poverty, Health

Strong Civil Societies to Tackle Poverty in Africa

Civil Societies
On August 8, 2022, the United States Secretary of State Antony Blinken started his tour of countries in Africa to strengthen U.S. ties with African countries. The main goal of the tour is to highlight the benefits of a relationship with the United States, which promotes strong civil societies to tackle poverty in Africa based on democratic values. This is in contrast to having China as the main ally, which, according to U.S. officials, lures countries into a debt trap that hinders economic progress. Furthermore, a relationship with a democratic country such as the U.S. allows African countries, which have a dark history of imperialism, to improve their economy and empower their own people without feeling controlled.

Poverty in Africa

In recent years, African countries have been experiencing turmoil in the form of corruption, coups and authoritarianism, all of which have prevented them from achieving social, economic and political progress that can reduce poverty. For example, according to the World Bank, Mali’s poverty rate in 2020 was 41.9%, the latest poverty estimation of the country. However, the citizens in African countries have demonstrated willingness to achieve ambitious goals of reducing poverty through empowered, but fragile civil societies.

The people in these African countries are passionate about improving their countries and moving away from their colonial past. Secretary Blinken’s trip to African countries illustrated the desire of African countries to help their own people live better lives without a major power such as the U.S. or China dictating them. In other words, African countries believe that tackling poverty requires a vibrant civil society that democratic values powers.

Democratic Economic Assistance Improves Lives

Economic development is the most important goal for African countries considering the daily struggles of their own citizens. Thus, it comes as no surprise that African countries value economic aid from developed countries. However, the terms and conditions of the economic aid that developed countries hand down vary. According to the Council on Foreign Relationships (CFR), Chinese economic aid “sans the moral scrutiny and rigorous conditionalities associated with American assistance.” This opens the door to corrupt practices such as debt traps that hurt the average citizen in Africa.

The U.S. does not “direct state funds to roads and other projects” which could make countries vulnerable to debt, The Washington Post reported. U.S. economic assistance encourages strong civil societies to tackle poverty in Africa.

Security from a Democratic vs. Autocratic Ally

African countries such as Sudan and Mali have experienced violence that resulted in the deaths of innocent civilians. That is why African countries continuously seek security assistance from major countries such as the U.S. or Russia. However, countries define security differently from one another given how they implement it domestically.

For example, Russia provides security through the Wagner Group, a private group that deploys mercenaries that embolden repressive autocrats in return for “precious minerals like gold.” As a result, the Wagner Group committed “civilian killings” and launched “social media disinformation campaigns” which caused instability.

On the other hand, throughout Secretary Blinken’s tour in Africa, the White House emphasized “African contributions and leadership” in tackling security issues, paving the way for strong civil societies to tackle poverty in Africa.

Assistance with Governance

Some African countries have experienced turbulent coups that caused instability. Thus, countries such as Libya often request assistance with governance from other countries for stability. The issue of governance in Africa is delicate, however, with citizens in the region wanting to choose their own government without major powers dictating how they should rule. According to The New York Times, Russia, through the Wagner Group “props up autocrats,” such as General Mohamed Hamdan of Sudan in return for money and minerals that belong to the citizens.

According to The White House, the U.S. approach to helping African countries govern is by “backing civil society” and “centering the voices of women and youth” in determining the politics of their country. Thus, more democratic governance could make it easier for strong civil societies to tackle poverty in Africa.

The U.S. is far from perfect in terms of its foreign policy and aid to developing countries. However, Africans may finally get the chance to rebuild their countries and take control of their future after many decades of colonialism followed by turmoil after independence. U.S. policy favors civil societies which are the key to reducing poverty, empowering women and increasing the quality of life. Secretary Blinken’s tour reminded the world that “most Africans remain drawn to western values” and “the allure of the U.S. economic model,” The Washington Post reported.

– Abdullah Dowaihy
Photo: Flickr

September 13, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Naida Jahic https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Naida Jahic2022-09-13 01:30:492022-09-10 17:32:29Strong Civil Societies to Tackle Poverty in Africa
Developing Countries, Global Poverty, Health

Flooding in Uganda 

Flooding in Uganda Due to global warming over the past few years, the world has seen many countries be thrown into crisis due to natural disasters. Uganda has been one of those impacted countries.

What’s Happening?

24 people have died and over 5,600 people have been displaced due to the eruption of 2 riverbanks in Eastern Uganda causing flash flooding after heavy rain. The floods have also led to 400,000 people without clean water and destroying thousands of acres of farmable land. Flooding in Uganda has left many Ugandans without the capacity to sustain their basic needs. Rain is predicted for the coming month and the local government has a goal of evacuating 100,00 people out of the Eastern Ugandan area, only 2,500 have been evacuated thus far.

Impact On Poverty

Uganda has one of the youngest populations in the world. Half of the population is 15 years old or younger, so this massively impacts the work force. 76% of the country lives in rural areas and 73% of the work force works in agriculture. The floods have greatly impacted this massive industry of agriculture which affects the way the population is able to earn sustainable wages. 41% of the country already lives below the poverty line of less than $1.90/day. Fertile land and farming are seen as a way for people to make a living for themselves.

With the floods having no end in sight and likely only to get worse due to global warming, thousands of acres have been lost in this season alone and it is hard to say when the industry could make a full recovery.  The eastern and northern regions of Uganda have higher poverty populations than the rest of the country. This means flooding in Uganda is more likely to affect people who are in poverty.

Humanitarian Impact

On June 13, politicians in the area declared a need for humanitarian assistance in food security. The USAID and BHA are planning to deliver emergency funds to the world food program in order to help with the food crisis caused by the flooding in Uganda. The U.S. also announced a donation of $20 million in development assistance to the country. The funds are meant to ease the food insecurity by helping the agriculture industry and providing the country with improved techniques to increase productivity and to prevent losses.

 A Look Ahead

The situation for many in Uganda is currently not adequate, however, the people of the world see their struggle and have committed to helping. The U.S. and other organizations have seen this problem all over the world in terms of food insecurity caused by natural disasters. While the problem may not be gone today or tomorrow, there are countless people trying to make sure that the Ugandans in the coming years will not have the same worries.

– Alex Peterson
Photo: WikiCommons

September 9, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-09 01:30:322022-09-07 02:40:06Flooding in Uganda 
Developing Countries, Development, Global Poverty, Health

Mental Health in Pakistan

In developing countries like Pakistan, a nation that has faced violence, economic and political instability since its birth in 1947, mental health is a highly consequential yet invisible issue. Pakistan has one of the highest mental illness rates in the world — A 2016 article by DAWN says around 50 million Pakistanis suffer from mental issues. Pakistan also has a staggeringly low number of psychiatrists — a 2020 article published by The Lancet Psychiatry says Pakistan’s population stands at more than 200 million people yet the nation has fewer than 500 psychiatrists. A 2015 article by Inamullah Ansari says Pakistan has four psychiatric hospitals available to the whole country. This makes it especially hard for those who need help to find it, a problem only exacerbated in rural areas where there is only one psychiatrist per million people. For these reasons, improving mental health in Pakistan is imperative.

Mental Health Stigma in Pakistan

The topic of mental health in Pakistan carries a stigma, which deters people from seeking professional help. Many believe that mental health issues stem from “supernatural forces,” and as such, psychiatric patients seek help from religious healers. This is due to limited educational awareness of mental health conditions and minimal access to mental health professionals.

Mental Health Among Pakistani Women

Pakistani women face significant societal stigmas and gender biases, which marginalize women and serve as stressors exacerbating mental health issues among women. In Pakistan, violence against women is rife as society considers violence “one of the acceptable means whereby men exercise their culturally constructed right to control women.”

It is common for many Pakistani families to celebrate the birth of a boy but mourn the birth of a girl. Child brides, dowries and exchange marriages are common, especially in rural areas. And often, early marriage results in abuse, violence, and in extreme circumstances, some marriages lead to honor killings and acid burns. Marital violence is concerningly common in Pakistan. A United Nations study found that a staggering 90% of Pakistani women surveyed suffered mental and verbal abuse from their spouses and 50% of women endured physical abuse.

Societal Stigma

Divorce in Pakistan also carries a tremendous stigma. Many women are afraid to leave their husbands simply due to social stigma, fearing their friends and families will cut them off. This stigma often traps women in a cycle of abuse. Around 70% of abused women have never opened up to anyone about their abuse, says a 2004 study by Unaiza Niaz.

This constant abuse puts women at high risk for depression, post-traumatic stress disorder, substance abuse and even suicide. Marital abuse also puts children at a higher risk for depression, anxiety, substance abuse and poor school performance. Children younger than 12 with abusive parents are up to seven times more likely to endure emotional, behavioral and learning difficulties, says the same study.

Several studies and surveys have shown that women, especially married women who have faced violence, are exponentially more likely to seek psychiatric care than men. Due to the gender-specific issues Pakistani women endure, promoting mental health in Pakistan, especially for women, is imperative.

Fighting for Change

Although the situation seems grim, many organizations and individuals are fighting to bring awareness and increase psychiatric care for those who need it the most.

Dr. Alaptagin Khan is working to raise awareness of mental health in Pakistan and established the Childhood Trauma Research Center in Peshawar in 2018 at Lady Reading Hospital, with the support of the Neurocare Foundation. This center collects data, hosts workshops and seminars and works to bring awareness to childhood trauma. The center aimed to collect data from 2,500 participants by December 2020. The data “will allow health professionals to assess the true disease burden of mental health disorders associated with childhood trauma in Pakistan.”

The Pakistan Psychiatric Society, founded in 1972, is the largest professional psychiatric membership organization in Pakistan. It represents more than 400 psychiatrists and continually advocates for a better system to combat mental health in Pakistan. It publishes scientific journals and magazines on mental health awareness and provides training for psychiatrists.

BasicNeeds Pakistan, started in 2011, is a nonprofit organization that “works to improve the lives of people living with mental illness and/or epilepsy in Pakistan.” It provides mental health training for community volunteers, brings awareness to mental illnesses and common symptoms and debunks myths or stigma. In addition, in 2016, it started the Centre for Women’s Enterprise and Development, which aims to create job opportunities for women suffering from mental illnesses. As of 2016, BasicNeeds Pakistan has provided support to 16,703 people who faced mental health issues or knew someone who did.

Looking Ahead

Mental health in Pakistan is a dire issue, one that political turmoil and instability continue to perpetuate. It is also one that women are at the forefront of, contributing to the oppressive standards of women’s living. It is an epidemic that continues to grow, affecting the entire population’s well-being and must be addressed for Pakistan to improve as a country.

– Padma Balaji
Photo: WikiCommons

September 9, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-09 01:30:252022-09-06 14:01:54Mental Health in Pakistan
Developing Countries, Development, Education, Global Poverty

UN Working with the Zakat Foundation to End Poverty

It is no secret that the issues associated with global poverty were only made worse during the COVID-19 Pandemic. Factors such as the cost of living, food security, healthcare and education are all points of concern for many nations with a struggling poor population. Luckily, there are many organizations working to address these issues. The Zakat Foundation has recently begun working with the United Nations to address worldwide hunger and global poverty.

The Zakat Foundation

The National Zakat Foundation Worldwide is an Islamic charity organization that is dedicated to helping the world’s poor. Zakat is one of the pillars of Islam which dictates that all Muslims should be kept financially viable, and one way to ensure this is for all Muslims to donate 2.5% of their earnings to charity organizations that aid the poor. The NZF Worldwide is the perfect channeling organization for all of this funding. It is estimated that the total amount of Zakat donations reach $300 billion to nearly $1 trillion dollars annually. The NZF Worldwide wants to use this incredible amount of money to help eradicate poverty.

Success so Far

The National Zakat Foundation currently has five member countries, Austria, Netherlands, Canada, Switzerland and the UK, which all provide a pathway for Muslims to send their Zakat donations to help eradicate global hunger and poverty. Through the Zakat Foundation, the member countries have raised more than $30 million since 2016 that has been used to provide aid for people living in poverty in other countries.

The UN and NZF Worldwide

The United Nations Development Programme announced in early August 2022 that it will once again be working with the National Zakat Foundation to use Zakat donation funding to help achieve the sustainable development goals for the world’s poorest countries. The first major project of this partnership is the goal of achieving the eradication of hunger and poverty in Somalia. The NZF with the help of the U.N. will work with local government officials, Islamic officials and the Central Bank of Somalia to help direct the Zakat funds in a productive manner that helps alleviate food insecurity and improve quality of life conditions for people living in poverty in Somalia.

Other NZF Programs

The National Zakat Foundation has had some recent success in the summer of 2022 before this partnership with the U.N. was announced. In the closing weeks of July, the NZF was able to provide the state of Osun in Nigeria with much needed power equipment that improved the quality of life in every sector, from nutrition to education. With the help of Zakat donations made by the member countries, the NZF was able to provide the state of Osun with cash grants, fridges, sewing machines, laptops, printers and more. Small items similar to those listed can have a profound impact on the lives of those who receive them, such as fridges keeping food from spoiling and laptops aiding educational growth.

The Future of Zakat

Despite the looming effects of an increased cost of living for those living in poverty, it appears that good news in the form of charitable religious donations may be what is keeping those people from continued suffering. The partnership with the United Nations and the already proven success are just a few reasons why the outlook for the world’s poor is bright, thanks to hard working organizations like the National Zakat Foundation.

– Declan Harkness
Photo: Flickr

September 6, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-06 07:30:312022-09-07 05:19:05UN Working with the Zakat Foundation to End Poverty
Children, Developing Countries, Development, Education, Global Poverty, Health

Benefits of Increasing Economic Development Aid to Turkey

Economic Development Aid to TurkeyThe relationship between the United States and Turkey began in 1831 when the country was still the Ottoman Empire. Turkey is a member of the North Atlantic Treaty Organization (NATO) and one can best describe the U.S.-Turkey relationship as diplomatic. While the United States only had $220 million in obligations to the Western Asian country in 2020, more economic development aid to Turkey could help alleviate poverty and an ongoing economic crisis.

Poverty in Turkey

In 2019, the World Bank reported that 0.4% of Turkish citizens lived in poverty. In a country of 84 million people, that equates to 336,000 impoverished people.

One of the most significant factors contributing to poverty in Turkey is the lack of education. In 2019, only 66% of the population 25 and older had finished lower secondary education. Low education attainment gives rise to unemployment. In 2021, unemployment in Turkey stood at 13.4%. While the COVID-19 pandemic does stand as a contributing factor to the unemployment rate, the unemployment rate increased only about 3% since 2018.

With the unemployment rate also comes low wages, which factors into poverty. In 2018, the average wage stood at about 4,000 Turkish lira (about $220). But, the cost of living in Turkey jumped nearly 70% in April 2022, according to the BBC. To try and counteract that, the Turkish government has raised the minimum wage to 5,500 lira a month, but citizens say rent alone equates to “3,000-4,000 Turkish liras.”

Foreign Aid to Turkey

The majority of foreign aid to Turkey from the United States comes from the U.S. Department of State, largely going toward humanitarian aid. The Department of Defense gave Turkey $28.43 million in 2020 for “conflict, peace and security” programs. However, Turkey only received about $2.8 million through the Trade and Development Agency for economic development.

Trade and the Economic Crisis

Money for economic development from the Trade and Development Agency involves creating economic opportunities by exporting goods from the United States for development projects. This is beneficial to the United States as the money is invested in the Turkish economy through products produced domestically. In turn, that investment is returned through the continued trade partnership of U.S. goods.

The trade relationship between the United States and Turkey has increased significantly since 2009. According to the Office of the United States Trade Representative, from 2009 to 2019, U.S. exports to Turkey increased by about 41% to $10 billion.

Despite a GDP increase of 0.9% in 2019, Turkey is facing an economic spiral. The value of its currency, the Turkish lira, has endured instability since 2018. Outstanding circumstances like the pandemic and economic sanctions have created a perfect storm of financial woes for the country, along with rampant inflation.

In November 2021, the value of the lira dropped sharply by 30%, triggering another wave of panic in the country. In 2022, the war between Russia and Ukraine exacerbated these financial circumstances, with Turkey seeing inflation rise more than 70% this year.

The United States can help alleviate poverty and the ongoing economic crisis via increased foreign aid to Turkey, especially through economic development. Expanding programs through the Trade and Development Agency would be one instrumental way to facilitate change in Turkey. Additionally, increasing economic development aid to Turkey could greatly aid the stability of the country until the lira crisis resolves.

– Emma Rushworth
Photo: WikiCommons

September 6, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-09-06 07:30:012022-09-05 13:29:32Benefits of Increasing Economic Development Aid to Turkey
Children, Developing Countries, Development, Global Poverty, Health

Agriculture in Malawi Uses Solar Power to Water Crops

Agriculture in MalawiIn high-rise corporate buildings and individual cubicles, a barrier unfolds in the lives of many people who work in air-conditioned offices toward the difficulties of a career in agriculture. Small changes in the weather or environmental conditions impact entire communities. The emergence of the collaboration between new, innovative technological solutions and the farms of Malawi shed light on the future of farming.

Agriculture in Malawi

Malawi is a landlocked country in the southeast Africa. About 80 percent of Malawi holds connections to the agricultural sector as a means of their livelihood, representing the importance of efficient and innovative farming policies. Political leaders implemented the “National Nutrition Policy and Strategic Plan” to complement the pre-existing “Comprehensive Africa Agriculture Development Program”. Together, the policies coordinate government spending and growth in the agricultural sector. Malawi also works with other organizations and governments for additional agricultural support. For example, the United States Agency for International Development (USAID) invests in dairy and legume cultivation, provides training to assist in financial and economic improvements and works with local communities to develop lasting solutions.

Concern Worldwide in Malawi

Another organization that provides agricultural assistance is Concern Worldwide. Created in 1968 by a couple named John and Kay O’Loughlin-Kennedy, this group is based in Ireland. It initially started as a response to the independence movement in Biafra from Nigeria that resulted in widespread famine. The organization eventually expanded to countries in need around the world, providing aid and sending volunteers.

In 2021, Concern Worldwide provided emergency assistance to 17.8 million people and health services to 11.4 million people. In 24 countries, Concern Worldwide emphasizes the livelihoods and education of impoverished communities and fights for adequate health and gender equality.

Harnessing the Power of the Sun

One of Concern Worldwide’s latest initiatives is the implementation of a program to improve agriculture in Malawi. Because a large portion of the country relies on the success of agriculture to survive, it is vital that the productivity and efficiency of new technological innovation transfer to the communities to establish a sustainable livelihood. Concern helps install solar-powered irrigation systems with funding partnerships with organizations such as the European Union and Irish Aid.

The new irrigation system allows farmers to avoid problems associated with droughts and other environmental inconsistencies and plant multiple times per year. The collaboration in these local communities ensures that the program will be long-lasting and sustainable. Groups in specific areas assemble into co-operatives, jointly operate the system and make decisions about entering the agricultural market to ensure a profit. The profits provide repayment for the irrigation system, allowing the organization to move on to the next co-operative group. Thus, the system that Concern Worldwide supports encourages productive farming techniques and resourceful business strategies to ensure long-term success for agriculture in Malawi.

Success Builds From Previous Projects

The development of solar-powered irrigation systems builds on prior projects in the region from similar humanitarian groups. Concern Worldwide previously worked with the Promoting Sustainable Partnerships for Empowered Resilience (PROSPER) program to provide treadle pumps in partnership with UK Aid.

It functioned as a means to increase food accessibility and availability. After budget cuts, the organizations that were supporting the project were unable to continue. Thus, there is hope that the new solar-powered system yields more success among renewed efforts in the field of agriculture in Malawi. The solar-powered irrigation system also builds on a prior UNICEF project for a solar-powered water pump in Malawi. UNICEF installed this pump and also trained citizens to operate and fix the pump when needed while creating a way to fund the pump through a community garden. The program assisted in a wide variety of poverty-reducing actions in the areas of sanitation, agriculture, trust in local institutions and time for children to attend school.

A Look Ahead

As more projects such as the prior project that UNICEF implemented as well as the more recent project by Concern Worldwide make a difference in Malawi’s local agricultural communities, individuals remain closer to maintaining healthier and stable lifestyles.

–Kaylee Messick
Photo: Flickr

September 5, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-05 07:30:282022-09-03 16:15:41Agriculture in Malawi Uses Solar Power to Water Crops
Children, Developing Countries, Development, Education, Global Poverty

Cryptocurrency in the Philippines

 cryptocurrency in the PhilippinesThe fallout from a new cryptocurrency game in the Philippines, Axie Infinity, has prompted involved parties to question the nature of the role that cryptocurrency plays in the economy of developing countries. The game’s adverse effects halted players’ hopes of financial gain, which cost many, including those on low incomes, their savings. Axie Infinity originally saw Filipinos earning sums as large as $487 in just over two weeks, and thousands of people entered the crypto game, as it soared in popularity. However, the game’s economy crashed, leaving many of its players in debt and a poor reputation for cryptocurrency in the Philippines.

The Appeal of the Game

The Philippine Statistics Authority saw an increase in the percentage of the population living in poverty, from 21.1% in 2018 to 23.7% in 2021. One can attribute this increase in poverty to the COVID-19 pandemic, which negatively impacted many people’s work and income stability. Many Axie Infinity players had an attraction to the play-to-earn element of the game so that they could improve their incomes. The game involved buying monsters (Axies,) that are NFTs (non-fungible tokens.) Players could trade or breed these and also obtain an exchangeable currency called SLP (smooth love potion).

How the Game Collapsed

The low income of many players (minimum wage in the Philippines currently being around 570 PHP/$10.3 USD) meant that as SLP began to increase in price, it became more difficult to afford the starter monsters and therefore, Axie Infinity became less financially accessible. This led to an employment scheme where “managers” from high-income countries, such as Australia, would buy monsters, and those who could not afford to would take the position of “scholars,” leveling the monsters up, while the managers raked in the profit. As the game’s popularity increased, the value of the currency dropped, and a bad situation turned into a catastrophe for cryptocurrency in the Philippines, with a hack costing the network and its players $600 million. Despite the players getting their stolen money back, the game lost its credibility as a multi-faceted lack of security emerged, and many players were worse off than where they started.

The Benefits

Upon seeing the damage that the Axie Infinity crash caused, it is easy to doubt the benefits of cryptocurrency, specifically to those living in poverty. Despite the magnitude of the fallout, cryptocurrency still plays a crucial role in the socio-economic system of the Philippines. At least 70% of people in the Philippines do not have a bank account, and sources show that cryptocurrency and distributed ledger technology (blockchains) are helping to decrease this percentage. Having access to banking is a vital tool for bringing people out of poverty, enabling them to have more financial stability and security in receiving pay, paying bills and opening doors for aspiring entrepreneurs. More than half of Filipinos would consider investing in cryptocurrency, and the trust issues caused by Axie Infinity may be somewhat repairable by building knowledge.

Barriers to Overcome

In order to tackle financial exclusion, and therefore poverty, using cryptocurrency must become the accessible tool it has the potential to be. This is only enabled by further research to ensure regulation will not lead to a market collapse, and for users to be educated and informed. Despite players having some trust issues with the prospect of regulation, many believe that regulating could make the market bring possibilities for rapid economic development. Working on these trust issues by studying and teaching cryptocurrency in the Philippines would mean that people could reap the benefits with minimal risk.

– Lydia Tyler
Photo: Flickr

September 5, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-05 01:30:022024-06-11 23:17:21Cryptocurrency in the Philippines
Children, Developing Countries, Development, Education, Global Poverty, Health

The UK Government’s Asylum Partnership Agreement with Rwanda

Asylum Partnership AgreementOn April 14, 2022, the U.K. government and Rwanda entered into an agreement, that later became a five-year asylum partnership agreement. The agreement, officially titled “U.K.-Rwanda Migration and Economic Development Partnership,” will aim to provide asylum for immigrants traveling to the U.K. illegally, through relocation to Rwanda. As part of the agreement with Rwanda, officials will process refugees on entry into Rwanda, where they will receive a decision regarding their refugee status.

What Does the Agreement Entail?

U.K. Home Secretary Priti Patel and Rwanda’s Minister of Foreign Affairs, Vincent Biruta signed the asylum partnership agreement, which falls under the Memorandum of Understanding. The decision to strike an agreement with Rwanda came about as a result of the U.K.’s new immigration policy, which intends to counteract illegal immigration. “The consultation showed public support for the need to disrupt the criminal activity that underpins illegal migration.”

Rwanda will receive financial support from the U.K. government to accommodate and process refugees. According to the House of Commons Library “…the U.K. is providing £120 million funding to Rwanda. It will also pay for the processing and integration costs for each relocated person.”

Is the Agreement Necessary?

The two states signed the agreement in response to the migrant crisis affecting much of Europe in recent times. They intend to provide a safer, more manageable system to combat illegal immigration into the U.K.

It is anticipated that approximately 60,000 people are set to travel across the English Channel by the end of 2022. This figure is more than double in comparison with last year’s 28,526 people crossing the Channel in small boats. There was hope that schemes such as the partnership agreement would present a more viable option to combat future illegal immigration. However, “14,728 people have arrived since the government launched the Rwanda policy,” according to BBC.

Questions Over Suitability of the Deal and Its Potential Impact on Poverty

Many raised notable questions over the suitability and practicality of Rwanda serving as the representative country to accommodate refugees. Significant concern from U.K. officials regarding the asylum partnership agreement with Rwanda has manifested from numerous documents submitted to a high court hearing earlier this year.

A key point raised questions over Rwanda’s human rights status. Rwanda is one of the 14 countries presenting substantial issues in relation to asylum systems and human rights.

Concerns regarding the impact the agreement may have upon refugees traveling to Rwanda and the communities that they could settle in have been a prevalent talking point. Treatment of refugees arriving in Rwanda remains an issue from a human rights perspective, as suppression of freedom of speech, detention and even torture are common practices.

Economically, Rwanda has seen steady progress in recent times, with the country aiming to become a middle-income nation by 2035. However, according to The World Bank, with its poverty percentage standing at 55% in 2017, it may represent a difficult beginning for many refugees. The refugees that could face relocation to Rwanda will indeed discover this and with the right to leave Rwanda available to thousands of them, it has the potential to cause chaos and increase the strain on aid agencies working to combat poverty within Rwanda and across Africa.

The Ethical and Legal Challenges of the Agreement

At this current time, the agreement appears to be shrouded in controversy and indifference due to human rights concerns. The inaugural flight carrying asylum seekers destined for Rwanda should have departed on June 14, 2022. However, the European Court of Human Rights'(ECHR) late intervention successfully halted the first wave of deportations. Prime minister Boris Johnson condemned the ECHR’s decision and threatened to revoke the U.K.’s participation in the convention.

The asylum partnership agreement with Rwanda was met with a considerable outcry in the lead-up to June 14 and efforts to disrupt and put an end to the agreement were voiced in the form of organized protests. The UNHCR commented on the agreement, stating “They should not be traded like commodities and transferred abroad for processing.”

With the considerable legal battles looming over the asylum partnership agreement, any effort to relocate migrants to Rwanda as part of the agreement will not take place before late autumn at the earliest. The next landmark step in the ongoing developments of the agreement will take place on September 5, when a judicial review will take place at London’s High Court to determine the legality of the agreement.

– Jamie Garwood
Photo: Flickr

September 4, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-09-04 07:30:162022-09-02 14:34:36The UK Government’s Asylum Partnership Agreement with Rwanda
Children, Developing Countries, Development, Global Poverty, Health

The State of Poverty in Jamaica

Poverty in JamaicaMany view Jamaica as the heart of the Caribbean, with beautiful beaches and crystal clear waters. However, Jamaica has long faced an uphill economic climb that continues to plague the nation. While Jamaica’s GDP saw growth from 2013 onward, the onset of the COVID-19 pandemic significantly impacted the economy. The state of poverty in Jamaica indicates regression since the onset of the COVID-19 pandemic. The poverty rate in Jamaica rose 4% in two years, sitting at 23% in 2020.

Tourism Industry in Jamaica

Due to the nation’s heavy reliance on the tourism industry, the COVID-19 pandemic affected Jamaica significantly. The tourism industry alone accounts for $60 billion in gross domestic product while generating 2.8 million jobs for the citizens of Jamaica, according to Prime Minister Andrew Holness. In 2019 alone, a staggering 4.2 million tourists flocked to the beaches and resorts on the island.

However, once the pandemic hit Jamaica, the tourism industry came to a halt as did tourism-based income. The gross domestic product decreased by 9.9% in the year 2020, accounting for the steepest decline in the island’s history. During the peak of the pandemic, in July 2020, the unemployment rate reached 12.6%.

The CARE Programme

To combat this harsh reality, the Jamaican government stepped up to the plate to assist citizens. One of the most significant moves the government receives applause for is its implementation of a social and economic support program called the CARE Programme.

In order to improve the state of poverty in Jamaica, the program provided “compassionate grants to those who were unemployed or informally employed” before the onset of the pandemic. Those facing unemployment as a result of the pandemic received “temporary unemployment benefits” and the program supplied grants to small businesses and self-employed individuals whose income decreased due to the pandemic. The CARE Programme also provides aid to ill, elderly and disabled Jamaicans as well as other economically disadvantaged groups by boosting aid through existing initiatives. The program also gave incentives to companies in specific sectors to retain employees who fall in the lower-income bracket.

Due to the government’s generous and swift reaction to the pandemic, the state of poverty in Jamaica has continuously improved post-pandemic. In the year 2022, the percentage of people active in Jamaica’s labor force has risen. According to Carol Coy of the Statistical Institute of Jamaica (STATIN) as of April 2022, “The overall number of persons in the labor force rose by 24,900 or 1.9% to 1,350,300.” In addition to its renewed workforce, Jamaica anticipates that tourism in the nation for the year 2022 may bring in approximately USD $2.9 billion while drawing up to 2.5 million tourists to the island.

Looking Ahead

The perseverance of the Jamaican citizens and the government has led to a historic turnaround for the nation’s economy post-pandemic. While poverty has long ridden the island, the resiliency of the Jamaican people has brought the nation back from the brink of complete economic collapse. The current state of poverty in Jamaica makes it apparent that the future is more prosperous than ever.

– Austin Hughes
Photo: Flickr

September 3, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-09-03 07:30:322024-12-13 18:02:44The State of Poverty in Jamaica
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