Archive for category: Developing Countries

Information and stories about developing countries.

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4 Activists Fighting Global Poverty

Activists Fighting World Poverty
Hunger is a prevalent issue that impacts children, families and individuals in countries across the globe. Despite the major scale of this issue, determined individuals can play major roles in providing food security to thousands. Sharing their ideas and resources on how to reduce hunger around the world, here are four activists fighting global poverty.

Malala Yousafzai

Malala Yousafzai is a Pakistani education activist. The Taliban shot her in the head in 2012 for publicly advocating an end to gender discrimination in education. Since then, she has become a U.N. Messenger of Peace, a Nobel Peace Prize winner and the co-founder of the Malala Fund. Oftentimes, those in poverty cannot receive quality education which also limits social mobility. The Malala Fund is addressing world poverty by providing education to millions of girls. This organization created the Education Champion Network, which helps provide education to girls in Afghanistan, Brazil, India, Lebanon, Nigeria, Pakistan and Turkey. The Malala Fund has partnered with Apple Inc. and the Bill and Melinda Gates Foundation, as well as individuals such as Angelina Jolie, to help support the 130 million girls being denied an education around the world.

Ernesto Sirolli

Ernesto Sirolli is a leading activist on economic development for those in poverty. Born in Italy, Sirolli worked for an Italian NGO in Zambia. This NGO taught Zambian communities how to grow Italian vegetables. There was resistance to the NGO’s efforts and, as a result, the organization paid wages to the Zambian communities working with them. Before the communities could harvest the vegetables, Sirolli witnessed a group of hippos rise out of the river and devour their new agriculture. Only then did he understand the true threat of local resistance.

From this experience, Sirolli discovered the issues that arise from what he calls “dead aid” from many Western countries. He questioned whether the more than $2 trillion from Western countries dedicated to developing communities was being used in a non-patronizing way. He noticed that NGOs rarely worked with local entrepreneurs on an individual level.

Sirolli developed a philosophy of economic aid for those in poverty in which the primary principle is respect. He created the Sirolli Institute International Enterprise Facilitation Inc., a network that gives local entrepreneurs an opportunity to develop their own ideas and benefit their own communities. Sirolli offers local people privacy, confidentiality, dedicated service and other essential components of entrepreneurship.

Louise Fresco

Louise Fresco is a Dutch researcher and activist who advocates for smart agriculture as the key to fighting world hunger. In 2000, she became the assistant-director general of the United Nations Food and Agriculture Organization (FAO) in Rome and brought her ideas to an international scale. Fresco uses the evolution of bread as a metaphor to explain food’s role in the development of modern society.

Over time, bread has evolved from a staple to a cheap contributor to obesity. Additionally, Fresco discusses the large-scale production that has resulted in the mass destruction of landscapes. This negative association, combined with the negative environmental impacts of mass production, has created a counter-culture where people prefer to buy bread made from small-scale sellers. However, Fresco argues, buying from small-scale producers is a luxury solution for those who can afford it. People in poverty simply benefit from diverse, low-cost and safe bread.

Cheap bread symbolizes that food has become increasingly affordable. The human race currently has more available food than ever before, which allows people to focus on other activities. Humans have not had the luxury of ample food production until now when it has become so cheap compared to previous years. Fresco believes that to solve world hunger, countries must increase food production with subtle mechanization to avoid large-scale environmental destruction.

Melinda Gates

Along with her husband Bill, Melinda Gates is the co-founder of the world’s largest private charitable organization. The Bill and Melinda Gates Foundation has a $40 billion trust endowment that helps solve issues including global health, global development, global policy and global growth or opportunity.

Melinda Gates has used her position to focus on empowering women around the world. Specifically, Gates concentrates on family planning, maternal well-being and child health. She has spread awareness about “time poverty,” which is the idea that many women perform hours of unpaid work that can deprive them of their potential.

The Gates Foundation has donated to Mama Cash and Prospera, two prominent international women’s funds. Since 2012, the Bill and Melinda Gates Foundation has put upwards of $560 million toward women’s health.

Each of these activists fighting world poverty is taking a different approach to eradicating global hunger. However, the culmination of these efforts is making a major impact around the world, one person at a time.

– Camryn Anthony
Photo: Pixabay

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Saudi Women Empowerment: Gender Progression

Saudi women empowermentThe Kingdom of Saudi Arabia has struggled with issues regarding women’s rights for a long time. Saudi Arabia ranked 146 out of 153 in the 2020 Global Gender Gap Index. The country also did not allow women to drive until the government lifted the driving ban in 2018. In 2017, the country allowed women to apply for passports and allowed women above the age of 21 to travel independently without permission from male guardians. Saudi women even gained the right to vote and run for public office in 2015. Saudi Arabian women celebrate women’s empowerment due to the country’s recent progress toward gender equality.

Challenges Women Still Face

While Saudi Arabia is making progress, the country is not without its issues. The country still requires male guardians, usually fathers or brothers, to make decisions for Saudi women. To this day, the government also limits women when it comes to choosing whom to marry or initiating a divorce. This caused some Saudi women, such as Rahaf Alqunun, to flee because of the strict male guardianship system.

Additionally, several women’s rights activists, such as Loujain al-Hathloul, have been arrested by Saudi officials for encouraging Saudi women empowerment. Al-Hathloul posted videos of herself driving during the driving ban with her hair uncovered. She also ran for office but her name was never added to the official ballot.  Al-Hathloul was arrested in 2018 with 11 other activists on charges of promoting women’s rights and collaborating with foreign organizations and media. However, her trial was indefinitely postponed due to the COVID-19 pandemic.

Loosening Restrictions: Women Moving Forward

Saudi Arabia made the largest improvement globally in women’s rights at work, according to The World Bank. The strides are credited to greater freedom of movement for women and reforms for women at work. The country criminalized sexual harassment and established work protection to prohibit employers from firing pregnant women. Saudi Arabia also equalized the retirement age for both men and women at 60, which allows for more financial freedom. Finally, the country outlawed gender-based discrimination in financial services to increase female entrepreneurship.

These reforms were a part of the Saudi government’s Vision 2030 plan, which aims to diversify the economy by promoting the private sector. The plan also includes increasing women’s labor force participation from 22% to 30%.

Street Style and Women’s Empowerment

Marriam Mossali, a Saudi entrepreneur, launched her second edition of “Under the Abaya: Street Style from Saudi Arabia” celebrating Saudi women empowerment on June 24. The book, a partnership with LUX Arabia and Niche Arabia, exposes the kingdom’s unknown fashion scene. The first edition introduced progressive Saudi women while this second edition exposed the challenges these women face.

All of the book’s proceeds go toward scholarships for women to pursue higher education. To Mossali, the book is a celebration of Saudi women empowerment because it allows women to share their own stories. The book has a forward by Princess Reema bint Bandar Al-Saud, the country’s first female ambassador to the U.S. Al-Saud told Arab News that the book tells stories and embodies the principle of women supporting women.

“Our participation in the #WomenSupportingWomen movement is much more than just a hashtag,” the book’s website says. “We believe in giving voice to these talented women in Saudi and the opportunity to pursue their aspirations.”

The first edition of the book fundraised enough to award five aspiring photographers a yearlong scholarship to Future Academy in Jeddah. The second edition aims to award women aspiring to pursue a Bachelor’s in fashion design.

Despite strides made in women’s empowerment, women in the kingdom still face many challenges. However, Saudi women continue to fight for change and equality. From filming videos to photographing street fashion, Saudi women are taking a stand for gender equality and celebrating women’s empowerment.

– Grethel Aguila
Photo: Flickr

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The State of Poverty in Argentina

poverty in argentinaArgentina is a presidential republic that achieved its independence from Spain in 1816. Starting with the election of President Mauricio Macri in November of 2015, a promise of reform and international reintegration was on the minds of many Argentinians. The current president, Alberto Fernandez promised further reform and economic improvement in Argentina. However, poverty is an issue that the country must overcome in order to realize the dream of a better country. Here is some information about the current state of poverty in Argentina as well as the measures that some are taking to alleviate the issue.

Poverty Levels in Argentina

The poverty rate in Argentina is on the rise. In 2017, the CIA estimated that 25.7% of Argentina’s population lived below the poverty line. This poverty rate increased to 35.4% in 2019 and in the same year, it rose again to 40.8%. This is also reflected in Argentina’s GDP which declined from $643.6 billion in 2017 to $451.9 billion in 2019.

Many attribute the current state of poverty in Argentina to the unregulated spending of the Argentinian government. Additionally, many critics of the government’s economic policies claim that by spending more than what they have, the government created a public deficit. This increasing fiscal deficit led to inflation which is at the root of Argentina’s poverty.

Reasons for Poverty in Argentina

As mentioned, inflation resulted from the increasing fiscal deficit of the Argentinian government. However, this was also a consequence of the continuous printing of pesos to pay off debts. Consequently,  Argentina’s consumer prices rose 53.8% in 2019. The lack of affordability of food, for example, had drastic effects on Argentinian citizens’ lives. In addition, the Central Bank of Argentina rapidly sold its reserve of foreign currency in order to counterbalance the rapid depreciation of the peso. During the same time period, the Central Bank also increased interest rates to 45%. All of these factors further contributed to the additional inflation in the Argentinian economy.

The Alleviation of Poverty in Argentina

There are many people and organizations who are trying to alleviate poverty in Argentina. One aspect of poverty is homelessness. In 2019, there were an estimated 198,000 homeless in Buenos Aires alone. Tadeo Donegana, an 18-year-old Argentinian student, developed a map app called Ayumapp to help the homeless of Argentina. Ayumapp allows its users to add locations of the homeless in their respective cities. Users can also add comments about what kind of specific help the homeless need.

UNDP is also working with the Argentinian government to reduce poverty in the country. By furthering the Sustainable Development Goals (SDGs), UNDP has made progress in alleviating poverty. Some of UNDP’s outcomes include guaranteed food security for 198,000 people, providing health care to 15 million people without health insurance and training 7,500 youth to join the labor market.

Poverty in Argentina has its roots in the Argentinian government’s unrestrained spending. The huge fiscal deficit that resulted from this government spending and failed attempts to revitalize the Argentinian economy led to massive inflation. This inflation resulted in a lack of food affordability and homelessness in Argentina. However, there are those who are working tirelessly to better the current situation in Argentina. With this continuous support, many hope that a brighter future lies ahead for the country.

– YongJin Yi
Photo: Flickr

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Countries Have Outgrown the Terms ‘Developed’ and ‘Developing’

'Developed' and 'Developing'While the categories of ‘developed’ and ‘developing’ to describe countries may have been useful in the 1960s, Bill Gates and Hans Rosling—author of the book “Factfulness”—have begun using a new categorical system; four distinct income levels are now recognized as a more accurate way to describe countries and the range between them.

‘Developed’ and ‘Developing’ Countries

The terms ‘developed’ and ‘developing’ have become almost universal terms to describe the economy or wealth of countries. However, there is not one specific definition for these terms. Organizations such as the United Nations use the terms colloquially. However, they never introduced a specific, measurable definition for what actually classifies whether a country is developed or still developing.

In the 1960s, the terms were mostly based on infant mortality and birth rates. Developed countries had lower mortality and birth rates while developing countries had higher infant mortality and birth rates.

But ‘developed’ and “developing” have become outdated in this way, as just about every country in the world has improved infant mortality rates since the 1960s. In fact, some ‘developing’ countries of today have lower infant mortality rates than ‘developed’ countries in 1960.

Overall, the two terms are incapable of separating countries beyond ‘rich’ and ‘poor.’ This is a problem because the majority of people in most countries live somewhere in the middle. In fact, one can label 85% of countries as ‘developed.’ Meanwhile, 15% are in between and one can consider only 6% as “developing” in terms of fertility and mortality rates. That is why Hans Rosling uses four income levels to describe all countries instead.

The Four Income Levels

  • Level One: The majority of people live in extreme poverty on a daily income of $2 or less per day. Countries such as Lesotho and Madagascar are currently level one countries. For many people in level one, the main mode of transportation is walking. Some may not even have their own pair of shoes to travel in. In these countries, infant mortality, hunger and preventable disease prevalence are high. Approximately 1 billion people live at this level.
  • Level Two: People in countries such as China, Nigeria and Bangladesh generally live on $2 to $8 per day. They may ride a bicycle instead of walking, and they have their own pair of shoes. An estimated 2 billion people live at level two, which is more than any other level.
  • Level Three: In countries such as Egypt, Rwanda and the Philippines, about 2 billion people live on $8 to $32 per day. Transportation may include electric bikes, scooters, public transportation and cars. About 2 billion people live at level three.
  • Level Four: The wealthiest countries make up level four. The average person having an income of more than $32 per day. There is a large market for nice cars and houses. Simple necessities like clean water and nutritional food are widely available. The United States, Mexico, much of Europe and South Africa are some examples of countries at this income level.

This four-tiered system does not completely account for the variations within countries, but it provides more information than the previous terms. For example, some people living in level one countries are significantly richer than the $2 per day average, and many people living in level four countries experience poverty.

However, organizing countries in this way allows for a more accurate measure of progress. Bill Gates has argued that “It’s hard to pick up on progress if you divide the world into rich countries and poor countries. When those are the only two options, you’re more likely to think anyone who doesn’t have a certain quality of life is ‘poor.’” It is important to properly track global progress and development. We can then use the information to understand where further action must be taken.

A New Official Classification

It is difficult to distinguish between various countries with only two terms. The World Economic Forum stopped using the terms ‘developed’ and ‘developing’ in official reports. Instead, it has used a similar four-tiered categorization since 2016. The World Economic Forum states that it will now collect data “for the whole world, for regions, and for income groups – but not for the ‘developing world’ (or the sum of low and middle income).” Similarly, in 2016, the World Bank released a working paper looking into classifying countries by income as well.

According to Bill Gates, “Any categorization that lumps together China and the Democratic Republic of Congo is too broad to be useful.” Using these levels in data analysis creates a better understanding of variations between countries and their incomes.

– Sydney Bazilian
Photo: Unsplash

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5 Facts about Child Poverty in Rwanda

Child Poverty in RwandaJust over 20 years ago, the country of Rwanda suffered a devastating civil war and genocide, with more than 800,000 dead in 100 days. The children that suffered and survived the horrors are now adults, but what implications does this dark history have on Rwandan children today? Rwanda’s economic, political and social climates have entirely shifted since these tragic events. Of note, from 2001-2015, the country’s overall extreme poverty rate decreased by almost 24%. But more work is needed to help address the prevalence of poverty among the country’s youngest inhabitants. To that end, the national government has implemented the National Strategy for Transformation, aiming to halve the child poverty rate by 2030 from 39% to 19.5% or less. Here are five facts about child poverty in Rwanda.

5 Facts About Child Poverty in Rwanda

  1. Urban/Rural Divide. The provinces located in the West and South of Rwanda’s geographic landscape are significantly more rural, making child poverty disparities extremely visible compared to their urban counterparts. There are many different forms of poverty, but significant aspects affecting Rwanda’s rural youth include lack of sanitation and lack of health services. Currently, 20% more children under the age of 2 in rural areas experience greater than one form of poverty relative to those living in urban areas.
  2. Health. There have been significant health improvements for children in Rwanda, including the 70% reduction in child deaths over the last decade. However, health and healthcare are still lacking for Rwandan youth, as nearly 40% of children who die before the age of 5 are infants less than one month old. Though the rate of child deaths is alarming, Rwanda has significantly decreased its HIV/AIDS transmission rate between mother and child to 2% during the last three years.
  3. Education. Around 27% of secondary school-aged children did not attend in 2014 and more than half of Rwandan youth did not complete primary education in the same year.
  4. Child Rights. The median age in Rwanda is very young, standing at about 18.8 years old, due to the country’s genocide decades earlier. The young demographic has caused an increased awareness of child rights in the country, which has led to the passage of a bill that created a National Commission of Children. Children’s rights are now openly advocated for in the country as a result of the commission’s efforts, which address children’s rights to education, health and non-discriminatory practices.
  5. COVID-19. Rwanda experienced a period of economic growth and improvement prior to the COVID-19 pandemic. Fortunately, the World Bank Group provided funding of $14.25 million to help the country improve its COVID-19 response. Children in Rwanda have suffered by losing financial security and job access. Still, young farmers in the region have successfully adapted to the pandemic by adjusting the market for crops to save their lands and maintain a profit.

– Josie Collier
Photo: Wikimedia

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Updates on SDG Goal 1 in China

updates on SDG Goal 1 in ChinaSDG is short for Sustainable Development Goals, or the blueprints set by the United Nations to achieve global sustainable development. This initiative motivates every country to fight against social issues including hunger, global poverty, gender inequality and more. The first objective of the SDG is to “End poverty in all its forms everywhere.” Here are some updates on SDG Goal 1 in China.

Chinese Government’s Endeavor to Eliminate Domestic Poverty

Among important updates on SDG Goal 1 in China is the fact that some researchers believe that China is on its way to eliminating poverty. According to China’s National Bureau of Statistics, the population of rural citizens in poverty has declined from 100 million in 2012 to 16.6 million in 2019. The poverty line set by the government is an annual income of 2,300 yuan, or about 6 yuan a day. This reduction in poverty in China is due to political support: the Chinese government aims to end poverty by 2020 and complete the establishment of a “moderately prosperous society.”

Another key part of updates on SDG Goal 1 in China is the government’s new actions to reduce poverty. Since 2012, China has employed targeted poverty alleviation methods focusing on relatively impoverished areas. As a result, the average annual income for citizens in rural areas increased to nearly 10,000 yuan in 2018. The Chinese government has also employed “Internet Plus” strategies by encouraging the development of e-commerce centers in rural areas. Accordingly, many cities have become “miracles” for poverty alleviation: statistics show that 2.54 million people have escaped from poverty in China in 2019.

Challenges During COVID-19

COVID-19 is a special challenge that the world, and especially developing countries, must confront. It is not only a health crisis but also a social and economic crisis. As such, it affects updates on SDG Goal 1 in China. For China, COVID-19 presents a barrier to achieving the goal of eliminating poverty. COVID-19 restricts agricultural development because farmers cannot return to their lands. Meanwhile, due to interruptions in transportation, migrant workers are also unable to work. The combination of these challenges has caused an economic decline in China. In addition, healthcare issues and economic distress have resulted in poverty in China.

Some of China’s poverty alleviation strategies are also no longer appropriate during the pandemic. In 2013, China encouraged “wildlife breeding and domestication” in specific areas and created a market value of 521 billion yuan. Many impoverished areas depend on raising wild animals for economic growth; however, the Chinese government banned the industry due to its link to the spread of COVID-19 and the suspicion that wild animals can infect people. Thus, perpetuating this industry in the midst of COVID-19 presents a severe challenge for undeveloped areas.

Looking Forward

China’s endeavors in poverty alleviation are significant for both the nation and the world. Other countries can learn from China’s successes in fighting against poverty, which helped 602.7 million people escape poverty. If China can achieve SDG Goal 1 in 2020, it will be 10 years ahead of the United Nations’ commitment to eradicating global poverty.

– Yilin Che
Photo: Flickr

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Women in Developing Countries: The Impacts of International Trade

women in developing countriesInternational trade is arguably the most significant economic development of the last century. Its growth has been roughly exponential due to technological advancements and specialization, and exports today are more than 40 times the amount they were in 1913. Although this growth contributes to higher wealth and more stable economic systems for many countries, it simultaneously can exasperate already-existing inequalities, particularly those concerning women. International trade has contributed to the creation of new workforces containing more women. However, the employment opportunities in developing countries are typically low-paying positions with little prospects for skill development. Women in developing countries are limited to such positions due to social and cultural dynamics, policies and other country-specific contexts.

Employment of Women in Developing Countries

Women in developing countries oftent act as a cheap source of labor for firms. In manufacturing, women are mainly employed in jobs involving the production of goods, rather than higher-paying jobs involving management positions. If an economy is predominantly agricultural, women are often subsistence farmers or members of family businesses. In these situations, many women in developing countries do not get paid for their work. In service-based economies, women occupy low-skill positions such as street vendors. However, increasing the pay women receive for these jobs and successfully closing the gender gap could add about $28 trillion to global GDP.

The tendency of women to work in low-skilled jobs results from ingrained social norms designed to limit women’s economic mobility. Societies that expect women to assume the full responsibility of childcare often give them few opportunities to receive education or reduce the burden of their domestic labor. Consequently, these women are less likely to have the same access men do to land, credit and labor markets.

Little Access to Opportunities

Women in developing countries often also experience disproportionate rates of unemployment or remain in low-paying positions because they are unable to learn more about job opportunities in other locations. Robert Jensen, a former professor from the University of Texas at Austin, examined this phenomenon. He concluded that women living in rural areas in India who were contacted by recruitment campaigns providing information about job opportunities in urban areas ultimately participated more in the labor force. As a result, they experienced increased mobility.

Current Trade and Employment Policies

In 2016, the U.N. Conference on Trade and Development released a report stating that gender-blind trading policies exacerbate the inequalities women experience in developing countries. These gender-blind trading policies do not create equal opportunities. Instead, they allow men in the workforce to further benefit from existing economic advantages they enjoy.

However, the U.N. proposed two new global development frameworks to promote gender equality and women’s empowerment through trade. The 2030 Agenda for Sustainable Development focuses on combating gender issues. It links economic, social and environmental factors to address power structures and social dynamics that contribute to gender inequality. The Addis Ababa Agenda on Financing for Development requests equal gender inclusion into the formulation and implementation of financial, economic, environmental and social policies. It also aims to ensure women’s equal rights through access to economic activities that would combat gender-based violence and discrimination.

Together, these development plans are a holistic, firm course of action in the fight against women’s economic inequality. The U.S. Council on Foreign Relations recently reported on the progress nations have made in adopting plans, allocating funds and formulating policies. It found higher numbers of trade agreements with gender-related provisions in the last three decades. Although the global economic impact of COVID-19 may disrupt this progress, comprehensive plans and agendas will ensure that the pursuit of gender equality in trade continues.

– Isabel Serrano
Photo: Unsplash

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Paani Project Improves Water Access in Pakistan

Water Access in PakistanJust a few months after assuming office in 2018, Pakistan’s Prime Minister Imran Khan issued a dire declaration to his nation, pronouncing the water crisis to be the most pressing problem facing Pakistan today. Soon after, one team of Pakistani-American college students decided to launch the Paani Project to address the issue. Since then, the group has made astounding strides toward improving water access in Pakistan.

The Water Crisis in Pakistan

The Paani Project is addressing one of the most acute water crises in the world today. With a population of 212 million, poor water management, climate change and intensive agriculture, access to clean water can be scarce. An estimated 40% of deaths in the country are linked to unclean water.

Pakistan also has a shocking disparity in water access between its urban and rural areas. With up to 70% of rural regions having no access to clean water, millions in Pakistan’s more remote areas face a severe risk to their health and livelihoods.

Origins of the Paani Project

In order to combat this critical issue, four University of Michigan students decided to launch the Paani Project. The mission began on a local scale. For three months, on their way to class and around campus, the students would sell doughnuts, slowly collecting enough funds to build their first well in a rural region of Pakistan’s southeastern province of Sindh.

Since funding their first well, the team has put hours of effort, collaboration and organization into the project, creating a fully functioning nonprofit that has seen widespread success.

The Paani Project Impact

With over 850 wells built across rural areas as of 2020 and more than $300,000 donated, the Paani group has made an undeniable impact in improving water access in Pakistan. Their work has spread from Sindh to Khyber Pakhtunkhwa and Balochistan, serving rural needs across the country.

In addition to building wells, the project has also diversified its mission by leading a number of different humanitarian efforts around the country. In Azad Kashmir, Paani led a winter coat drive and in Karachi, the group operated a dental clinic to provide care for those that would not have access otherwise.

The organization has also provided relief from the COVID-19 pandemic by providing food to thousands of workers in Khyber Pakhtunkhwa and Sindh who rely on daily wages to support their families.

Other Initiatives

Paani also believes that education is an important step in combatting poverty and increasing water access in Pakistan. With every well that has been built, Paani has held “hygiene education seminars” to teach community members about proper sanitation practices and how to maintain the well. The group has also helped develop education curriculums in Sindh, through which they hope to increase knowledge about the water crisis and proper hygiene practices.

Although Pakistan’s water crisis is one that continues to make headlines and threatens the lifestyles of millions of people across the country, work by organizations such as Paani has helped to turn the tide. With tens of thousands of people directly reaping the benefits of Paani’s wells, the group’s contributions are sure to be much more than just a drop in the bucket in the fight for universal water access in Pakistan.

– Shayaan Subzwari
Photo: Flickr

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How Microfinance Empowers Women

microfinance empowers womenGender inequality has a significant impact on poverty and income inequity. Income inequality based on gender is lower in countries with policies that support women and facilitate the employment of women. These policies include maternity leave, paid sick leave and unemployment benefits. In countries where women receive larger incomes, poverty rates tend to be lower overall. Microfinance or micro-lending combats poverty by helping individuals in low-income areas kickstart small businesses. Microfinance institutions provide micro-credits to people who are struggling financially with the goal of helping them reach financial security. Most of these institutions work in developing countries. As a result, microfinance empowers women to succeed and escape income inequality. 

How Do Loans Help Women?

Women account for 74% of the clients of microfinance institutions, which provide credit to almost 20 million people around the world. These loans help women in developing countries gain autonomy while also positively impacting their children and the opportunities available to them. When women gain financial security, they are more likely to invest money in their children’s education or medical expenses. Microfinance for women can also have positive impacts on entire communities. For instance, through the prioritization of education and reduction of gender inequalities. 

Women’s Empowerment Benefits the Economy

Microfinance enables women around the world to start businesses and act on ideas that they would not be able to achieve without a loan. FINCA, a Microfinance institution, has stated that 72% of its female clients were able to provide for their families and send their children to school. Gender inequality has significant economic implications. According to Kiva, another Microfinance institution, there are 1 billion women around the world without access to a savings account and necessary credit. Women earn 63% less than men on average and over twice as many men are involved in the early stages of business planning. Kiva loans have helped 2.7 million women in 94 countries, and 83% of the institution’s loan recipients are women. Additionally, these loans impact communities by building confidence in young girls. Estimates have determined that by 2025 the global GDP would grow by $12 trillion if women equally contributed to the economy. 

Women’s Empowerment and Healthcare

Microfinance programs often require women to meet on a weekly or monthly basis to repay loans and deposit money. This allows women to come together and simultaneously provides financial security while building support systems. These meetings also create an opportunity to provide health education to women who lack insurance and access to health care. Specifically, HIV/AIDS prevention programs can increase the reproductive and sexual health of marginalized women. 

Therefore, in many different ways microfinance empowers women. It not only allows women to gain independence financially but it increases opportunities for children and positively affects entire communities. Enabling women to gain financial security and empowering young girls can help decrease gender inequality around the world and combat poverty. From this, it is clear that microfinance has a far greater impact on poverty and female empowerment than simply providing a loan.

– Maia Cullen
Photo: Flickr

Tackling Health and Heat in Developing Countries

Heat in developing countries
Earth is getting warmer every day and the heat in developing countries can be fatal. There are ways to take the edge off – air-conditioned rooms, pools and shade – and make even the hottest days bearable. This is not to say that Americans are completely safe from heat-related deaths – it kills 800 people per year, disproportionately affecting people of color and migrant workers. Although this number may seem small compared to the toll of cancer and strokes, any deaths from overheating are unacceptable. They are easily preventable with proper education and access to the right information and technologies.

The Dangers of Overheating

However, in countries like India and in the deserts of Africa, where temperatures can reach up to 120 degrees Fahrenheit, the dangers of overheating are everyday realities. The effects of overheating on a population are difficult to measure because overheating exacerbates other diseases. Symptoms affect the heart (causing irregular rhythm), immune system (decreasing white blood cell count) and cause dehydration, which has innumerable other effects. Statisticians estimate that between 1998-2017, over 160,000 people died as a direct result of overheating and heatwaves worldwide. Technologies such as air conditioners would reduce deaths due to heat in developing countries and improve the livelihoods of people. Unfortunately, barriers such as high cost and the unavailability of electricity remain in developing countries. Luckily, several organizations are working to find ways to mitigate these barriers.

Reducing Heat-Induced Deaths

  • The World Health Organization (WHO): WHO already does much to help reduce poverty. It also takes on the challenge of reducing heat in developing countries. WHO looks at how to compactly design buildings with fewer levels to lower cooling costs. It investigates investment into insulation and the positive economic impacts of finding new markets for air conditioning companies. The Maghreb, a region of North Africa, could particularly benefit from an overhaul of cooling systems because of its rich natural resources. This would incentivize more workers to move there, bringing profit to all.
  • Rocky Mountain Institute: RMI aims to reduce the effect of air conditioners on the environment. These environmental effects often impact poorer communities in particular. Typical AC units run on electricity provided by fossil fuels. These fossil fuels warm the planet, creating a positive feedback loop. Providing everyone with access to air conditioners, therefore, as many organizations are doing, may not be enough. People also need to stop organizations from warming the earth and increasing demand even further. The institute concluded that the world needs units that are at least five times as powerful as they are now while using the same amount of energy, and electricity that comes from either solar panels or wind turbines.

Keeping people safe from the real danger of heat in developing countries is a necessary step to increasing productivity and saving lives. Fortunately, heat-related deaths are preventable if well-equipped countries assist third world economies to start producing the technologies that people need, such as air conditioners.

– Michael Straus
Photo: Flickr