Archive for category: Development

Information and stories on development news.

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The Rise of the Middle Class in the Developing World


The expansion of a country’s middle class has often been regarded as a sign of development. In recent years, there has been a rise of the middle class in the developing world, resulting in economic prosperity, as well as a potential for more social security.

A report by Homi Kharas titled “The Unprecedented Expansion of the Global Middle Class” provides significant statistics on this topic. Worldwide, there are approximately 3.2 billion middle-class members, with this number expected to increase in the upcoming years.

Such is due in part to a decline in world poverty, with the rate of those living on less than $1.90 a day being about 10 percent. The largest reduction in poverty can be seen in Asia, particularly in the countries China, Indonesia, and India.

However, progress in poverty reduction and its related development of the middle class has been disproportionate. Regions of sub-Saharan Africa still see the greatest diffusion of poverty, with half of the world’s extreme poor being housed here.

Yet, despite this, there is cause for optimism. The GDP of developing countries, measured in terms of purchasing power parity, grew from approximately $35 trillion in 2005 to more than $40 trillion in 2011. Such an increase is reflective of an enlargement of the middle class.

While this clearly has economic consequences, it also has social ones. Predictions have been made regarding advancements in world democracy, as more middle-class citizens in developing nations recognize their potential to bring about governmental change. Strength comes in numbers.

As OECD director  Mario Pezzini comments: “Middle-class expectations in emerging and developing countries are rising and evolving as their countries’ economic situations improve… They are no longer satisfied with simply having access to public services; they are increasingly concerned with their quality.”

This, in turn, may have repercussions for world poverty, assuming governments are able to meet public demands. It has been universally recognized that causes of poverty include insufficient access to public resources such as education and healthcare, especially for rural inhabitants.

Assuming governments are able to meet public demands, if these public resources are not only expanded but improved, it is likely that global poverty will be further reduced. However, such is only speculative. Only time can reveal the future of poverty worldwide.

What appears to be certain, however, is that the rise of the middle class in the developing world has a number of positive consequences. Collective leaders should continue to ensure such growth in order to reduce poverty, bring about economic expansion and increase social opportunities worldwide.

– Gigi DeLorenzo

Photo: Flickr

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Combating Poverty in Lebanon

Poverty in Lebanon
Poverty in Lebanon is caused by various factors. Since the start of the Syrian crisis in 2011, Lebanon has seen an influx of refugees, resulting in an increase in poverty, something that has been an issue for quite some time. According to the Nations Encyclopedia, the income gap between social classes has increased over the last 10 years. Both the upper and middle class have seen an increase in their income since 1991, but the rest of the country is not earning much money at all as the income of many has dropped below the poverty line.

OXFAM International, a nonprofit that fights poverty, addresses how the issue of poverty is multidimensional. OXFAM International works to address both the cause and impact of poverty in Lebanon, as well as in over 90 other countries. According to its website, the number of people living under the poverty line in Lebanon has increased by 66 percent since 2011. The World Bank discusses goals for economic improvement in Lebanon, including the creation of new jobs and the installment of an improved education system in order to spark an interest in business related jobs in the country’s youth.

Despite Lebanon’s continued economic struggles and the governmental issues behind them, there is still hope for improving poverty in Lebanon. According to data from the World Bank,  between 1992 and 2014 Lebanon’s GDP grew by an average of 4.4 percent, varying from year to year. The data also addressed the creation of new jobs between 2004 and 2009, when varying amounts of growth was seen, particularly in the trade, service and construction industry. According to the World Bank, 15 percent of the population emigrated from Lebanon in 2010, which is a factor in the economic improvement that the country has seen. This emigration increased employment opportunities and therefore sparked economic growth in the country as a whole.

– Helen Barker

Photo: Flickr

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Poverty in Israel Economy

Poverty in Israel
Poverty in Israel is widespread despite the nation’s booming economy. Approximately 22 percent of the population, or one in five Israelis, live in poverty according to a report by the National Insurance Institute in 2015. Among developed nations, Israel has the highest poverty rate, according to the Organisation for Economic Co-operation and Development.

The statistics on poverty differ depending on family structure. As the report establishes, families with children are more likely to be in poverty, with the rate holding at about 23 percent. Such is especially true for single-parent families or families with only one working parent. The rates also differ based on population group, with ultra-Orthodox families seeing a poverty rate of about 49 percent and Arab families about 53 percent.

Furthermore, a discrepancy exists due to age, with approximately 30 percent of children and 22 percent of the elderly living in poverty. Leket Israel food bank CEO Gidi Kroch said, “Israel is the poorest of the Western countries, with the widest gaps between the rich and the poor — a situation where the weakest populations, the elderly and children are suffering the most.”

Although the causes of such poverty are mixed, it can be attributed in part to low wages and employment rates, which may stem from poor education. In response to this impoverishment, the Israeli government has introduced a number of measures. Child benefits and the minimum wage have both been increased, leading to an advance in familial income. As for the elderly, welfare and disability allowances have also increased.

However, Israel’s welfare minister Haim Katz contends that welfare and tax benefit increases are not drastic enough. Average salary, as Katz points out, does not determine welfare benefits. He plans on changing this, declaring: “If we linked income support to average salaries we would immediately remove 187,000 from poverty.”

In addition to adapting the welfare system, the Israeli government should pursue a better standard of education. Regardless of which measures the government pursues, it is evident that poverty in Israel must be addressed immediately. “If things continue as they are,” Israeli economist Dan Ben-David reports, “we are heading to a third-world economy.”

– Gigi DeLorenzo

Photo: Flickr

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Mata Traders: Empowering Women in Fair Trade Fashion


Chicago-based fair trade fashion company Mata Traders, all began when three women went on a trip to India. Mata Traders now provides a steady income for many women who find themselves in poor conditions in India and Nepal. The name is a nod to the universal power within us all, the power of the female, as Mata means mother in the Hindi language.

The company’s selection is entirely for women by women, spanning all types of clothing and accessories. All the patterns seen on Mata Traders goods are its own design creations. In production, the designs utilize the processes of block printing and screen-printing, which have been widely practiced art forms in India for centuries. Everything Mata Traders sells is handmade, whether it is a pair of earrings or a dress.

The company partners with cooperatives in the region, which are practically operating as a type of social service. This means that women members are provided with a variety of health, social and educational resources. Mata Traders founder Maureen Dunn says it also provides “healthcare, daycare and scholarships for the women’s children, paid maternity leave, retirement pensions, vision testing: all part of the membership package. Social workers on staff assist the women in addressing their personal needs, from opening a bank account to situations of domestic violence and dealing with HIV/AIDS.”

Women are paid by each individual piece they create and play a role in deciding the prices for which items sell. The Huffington Post recently named Mata Traders one of the top five brands that are empowering women. Mata Traders products are now sold in every U.S. state, online and in many countries around the world.

– Shannon Elder

Photo: Flickr

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Effective Reform of Education in Turkmenistan

A Need for Reform and Research of Education in Turkmenistan
With 40 percent of Turkmenistan’s population under the age of 15, educational training and youth services are an absolute must for the country. According to experts, there needs to be more research and improvement for education in Turkmenistan if the country wishes to continue gaining economic success. UNICEF believes, however, that the new government in Turkmenistan is beginning to make headway in education reform, which shows a promising future for Turkmenistan.

There is currently a primary net enrollment rate of 97 percent and secondary net enrollment rate of 85 percent in Turkmenistan. These numbers sit above average for the Central Asian and Central Eastern European regions. However, there is very little access to pre-primary education, especially for isolated populations. School quality is also questionable, but impossible to analyze due to the lack of research into education in Turkmenistan.

Additionally, current research shows that many of the school buildings are deteriorating due to the lack of financial investment in education over the past few decades. UNICEF states that “as school buildings crumble, classrooms become more crowded, intake rates drop and enrollments decline.” Overall, it is evident that the people of Turkmenistan are still impoverished, and there is room for educational improvement.

After President Berdimuhamedov was elected in 2007, the change in government has brought hope for education in Turkmenistan, because the new president is making the education system a priority. President Berdimuhamedov was formerly the minister of health and later became deputy prime minister, a role in which he was responsible for education, science and health. His experience and passion show his potential for positive impact on education in Turkmenistan.

President Berdimuhamedov has invited the U.N. to partner with Turkmenistan, where the government and nonprofits will focus on Turkmenistan’s social and education agenda. Additionally, the Ministry of Education has partnered with UNICEF in order to create curriculum guides for education in Turkmenistan. These guides bring new and innovative approaches to teaching, testing and administering.

In cooperation with UNICEF, Turkmenistan’s government is also undertaking a comprehensive education sector review. This is absolutely crucial since there are huge gaps in data and research for education in Turkmenistan. Once research is compiled, the government will be able to create effective reforms that will address issues within Turkmenistan’s education system.

It is hopeful that with the execution of education research and the implementation of improved education reforms, current issues regarding education in Turkmenistan will be addressed.

– Morgan Leahy

Photo: Flickr

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Oliberte: Building Trade in Sub-Saharan Africa


Based in Ethiopia, Oliberte is the world’s first Fair Trade-certified shoe factory, making a variety of shoes for both men and women. From sneakers and boots to sandals and moccasins, Oliberte also makes bags and other accessories. It’s probably not often that you hear of a piece of fashion that is made in Africa. Canadian entrepreneur and the force behind Oliberte, Tal Dehtiar, is trying to change this perception.

In 2009, Oliberte started building trade in sub-Saharan Africa as a footwear company partnering with different factories around sub-Saharan Africa. Three years later, in 2012, it would open its own dedicated factory in Addis Ababa, Ethiopia, and the next year it was announced as the world’s first Fair Trade shoe manufacturer.

The whole premise of the brand is to support the rights of workers. The company prides itself on “empowerment, transparency, and doing right by all.” Oliberte recognized that Africa is usually met with a high amount of negative generalizations.

Believing in “trade not aid”, Oliberte’s website walks the consumer through the benefits of building trade in sub-Saharan Africa over providing aid. With many in the area experiencing poverty, providing a place of work is a huge plus instead of just providing aid.

By providing a workplace, profits made can be placed back into the company and community, creating more job growth. Eventually, more factories can open, providing jobs for more people, and allowing adults to work while children gain an education. While aid can have many positive effects, it is not sustainable and leaves people dependent.

Dehtiar says the company makes sure the employees are paid minimum wage, but also, “that as we grow as a company, they’re committed to improving their conditions, whether it’s through (initiatives such as) health insurance programs … now all the factories provide maternity leave programs to all the women.”

Gaining supplies locally from partners around Africa and creating products in their factory in Ethiopia, the brand is sure that everyone along the way has fair jobs and rights. They even attempt to buy their machinery on the continent whenever possible.

In the end, the products they sell come with a lifetime warranty. Oliberte is a brand that respects consumers, the environment and its employees.

– Shannon Elder

Photo: Flickr

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5 Ways Poverty Affects the Developing Brain

Poverty_ Brain
Living in poverty can coincide with numerous social problems — childhood neglect, violence and malnutrition, to name a few. However, there are studies being conducted that show how poverty may potentially affect the developing brain and the cognitive abilities of children. Here are five ways that research is currently showing how poverty affects the brain.

5 Ways Poverty Affects the Developing Brain

  1. Brain scans of children who grow up in poverty reveal that, overall, their brains develop less gray matter in the frontal and parietal lobe. Serving as the control center for the brain, the frontal lobe manages accessory cognitive functions like planning, focusing, problem-solving, organizing and controlling impulses. The parietal lobe is responsible for processing sensory information. The Institute for Research on Poverty at the University of Wisconsin-Madison reports that less gray matter in these areas, as seen on Magnetic Resonance Imaging (MRI) scans, can impede children’s abilities to learn even before they enter kindergarten. The research demonstrated that throughout brain growth in the first three years of life, children in a lower socioeconomic status (SES) had significantly lower brain volumes than their higher SES counterparts.
  2. Brains influenced by poverty show a significant decline in cognitive abilities related to memory, reading and language. This is evident through children’s performances on neurocognitive tests as well as brain activity on electroencephalograms (EEG). Research performed by Natalie H. Brito, a postdoctoral research fellow at Columbia University, combined this information along with studies of families to link cognitive abilities to circumstances like neglect, household stress and economic status.
  3. Similar studies conducted by Elizabeth Sowell from The Children’s Hospital in Los Angeles and Kimberly Noble from Columbia University demonstrate that brains of children in the lowest income brackets (families who make less than $25,000 annually) have six percent less surface area than children from higher income bracket families.
  4. Developing brains exposed to severe poverty also show smaller hippocampi (the portion of the brain that is central to stress response, memory and learning). Existing research supports the fact that parental caregiving is an important factor in the hippocampal development and childhood wellbeing. Combined with poverty, stressful life experiences result in a lower volume of hippocampi.
  5. A smaller amygdala is also characteristic of growing brains that have been exposed to poverty. Responsible for emotional processing and social information, a smaller amygdala can result in childhood depression and mood and behavioral problems.

The symptoms of poverty include many factors that can contribute to the modifications of a developing child’s DNA – malnutrition, exposure to violence, lack of cognitive stimulation or less time bonding with parents. Rather than present the solution as “eliminate all poverty,” remedies should focus on policies and programs that seek to mitigate the influence of poverty’s external factors. Research in this area is still developing, as scientists and doctors continue to monitor the neuroscience of poverty as children grow into adults.

Brito agrees when she says, “When I talk to a lot of our participants – always worrying about where their next paycheck comes from, always worrying about if they have enough resources – it takes away time and energy from having meaningful interaction with your child. So in developing countries, making sure that those policies are in place so that parents are available to just interact with their child, just play with their child without worry, really does make a big difference.”

– Tammy Hineline

Photo: Flickr

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Global Benefits of the Trade Facilitation Agreement

Global Benefits of the Trade Facilitation Agreement
The Trade Facilitation Agreement (TFA) came into effect on Feb. 22, 2017, after ratification by the World Trade Organization (WTO). According to the WTO, the TFA contains provisions allowing for “expediting the movement, release and clearance of goods, including goods in transit.” The agreement was created to benefit both wealthy, developing and underdeveloped countries that wish to engage in trade and commerce.

According to an article in The Economist, the TFA is designed to cut trading costs in developing countries by implementing more efficient processes and eliminating unnecessary obstacles prior to export clearance.

For example, individuals in sub-Saharan Africa must go through an excessive amount of barriers to get an item exported, including going through up to 200 hours of regulations and inspections. In comparison, wealthier countries may face up to only 15 hours of regulations and inspections.

According to the WTO, full implementation of the TFA “could reduce trade costs by an average of 14.3 percent and boost global trade by up to $1 trillion per year, with the biggest gains in the poorest countries.”

The TFA is divided into different sections and categories, each made up of substantive provisions. For example, section one of the agreement contains provisions necessary for expediting the movement and clearance of goods. Section two, however, consists of special provisions that would allow for developing and underdeveloped countries to benefit from trade facilitation upon receiving special assistance from member organizations that are involved in its implementation.

The member organizations that are involved in assisting developing and underdeveloped countries include the WTO, World Customs Organization and the United Nations Conference on Trade and Development.

The TFA will result in a heightened level of exports taking place out of developing and underdeveloped countries. Furthermore, a rise in trading expenditures will have a positive global effect on countries such as the U.S.

– Lael Pierce

Photo: Flickr

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Top 5 Anti-Poverty Tech Solutions


The latest technological innovations have the ability to make a powerful impact on reducing poverty across the globe. However, finding a way to support and develop the most promising ideas remains a challenge. To that end, The Tech Museum of Innovation in San Jose, California holds an annual awards program to spread the word about the best ideas in anti-poverty tech solutions. Here are five of last year’s Tech Awards Laureates:

Top 5 Anti-Poverty Tech Solutions

    1.  Equal Access International: This organization founded and run by CEO Ronni Goldfarb uses the power of the media to tell human stories about those in poverty, raising awareness and shining a light on those who would otherwise be ignored. Last year, this organization partnered with Nepal’s United Nations International Children’s Emergency Fund (UNICEF) to produce the radio show “Chatting with My Best Friend.” This show combines entertainment with education, teaching young people how to prevent becoming infected with HIV/AIDS. “Our programs help people believe in themselves and gain the confidence and skills they need to improve their lives no matter what their circumstances,” Goldfarb said.
    2.  International Development Enterprises-India (IDEI): IDEI designed a brilliant solution to tackle India’s lack of access to underground water. By creating an easy-to-use and cheap man-powered water pump resembling a tiered treadmill, farmers in India are able to extend their annual growing season with their own two feet. “We take what we call the logjam approach,” Shveta Bakshki, IDEI Vice President stated. “We identify that one, critical obstruction to remove so that good things start happening.”
    3.  Design Revolution (D-Rev): Krista Donaldson’s organization is saving the lives of infants using the power of light. Her groundbreaking blueprint for an enduring yet inexpensive lamp, called Brilliance, cures jaundice in babies by bathing them in a strong blue light. One of the most accomplished anti-poverty tech solutions to date, D-Rev’s phototherapy breakthrough has saved more than 175,000 infant lives across 41 countries. “We believe that regardless of your income, you deserve access to high-quality medical devices,” Donaldson stated.
    4.  Souktel: Hundreds of smartphone apps have been designed to serve smartphone users, but Souktel found a way to make older flip phones just as smart. Jacob Korenblum’s startup uses basic text messaging to link employers with candidates in regions where traditional communication is difficult, leading to job growth and greater economic gains. Derived from the Arabic words for market and telephone, Souktel turns text messages into miniature online job boards. “People might be from different backgrounds, but they are united in a common purpose for things like creating better healthcare and education,” Korenblum said.
    5.  Angaza: Lesley Marincola’s idea to bring solar energy to those who cannot afford electricity was revolutionary for its outside-the-box thinking. Instead of forcing people to pay up front for solar lamps, Angaza accepts micro-payments over time for energy while offering immediate access, similar to purchasing minutes on a cell phone. Once the purchase price of the device is reached, the lamp becomes the property of the user. Angaza’s tech not only improves individual lives, it bolsters the local economy as well. As Marincola told The Tech Awards, “It gets super exciting when you think about putting all of these low-income consumers on the map. We have big plans.”

    As Tech Awards Laureates, each of the above designers of anti-poverty tech solutions has been awarded $50,000 from PATH, a nonprofit for global health, to further develop their life-changing innovative ideas.

    – Dan Krajewski

    Photo: Flickr

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5 Books that Will Change Your Perspective on Poverty


For many, learning the truth about poverty can be hard. Unfortunately, for many, poverty is a sad reality. However, people should want to learn more about poverty so that it can be alleviated. The following is a list of books that will change your perspective on poverty.

5 Books that Will Change Your Perspective on Poverty

  1. Behind the Beautiful Forevers: Life, Death, and Hope in a Mumbai Undercity: Katherine Boo, Pulitzer-winner, published this novel in 2012. This book is a narrative nonfiction that tells the story of a family working towards a better life in the city of Annawadi, where inequality is very high. Over the course of three years, Boo got to know the people who live in Annawadi. The book focuses on the daily stresses and problems of the inhabitants, who are suffering from poverty, hunger, diseases, violence and ethnic strife. Boo focuses on people such as a young orphan named Sunsil, a garbage picker, and Fatima, a young, emotionally troubled woman who only has one leg and dreams of a better life. The book focuses on many people who are suffering from poverty and wish to escape the situation. This heartbreaking and dramatic true story will change your perspective about poverty.
  2. How Change Happens: This novel, “seeks to understand how power and systems shape change, and how you can influence them.” How Change Happens was published in 2016 and is written by Duncan Green. This book is for those interested in activism, lobbying, or joining organizations that are dedicated to inspiring change. Green focuses on major themes that can help make change occur in the world.
  3. Half the Sky: Turning Oppression into Opportunity for Women Worldwide: Written by Pulitzer-winners Nicholas Kristof and Sheryl WuDunn, this nonfiction story takes place in Asia and Africa. Here, Kristof and WuDunn meet extraordinary women who are struggling with inequality, sex slavery, violence and abuse. Kristof and WuDunn paint the world with many emotions; sadness, anger, clarity, and hope. “Deeply felt, pragmatic, and inspirational, Half the Sky is essential reading for every global citizen,” reviewers commented. This book will definitely change your perspective about poverty.
  4. Development as Freedom: Development as Freedom was published in 1999 and written by economist Amartya Sen. The book argues that economic development entails a set of linked freedoms: the freedom of opportunity including access to credit, political freedoms and transparency in relations between people, and economic protection from abject poverty, including through income supplements and unemployment relief. The book states that real change will not happen simply by increasing basic income or rising average GDP per capita. Instead, a package of overlapping mechanisms that will enable the exercise of a growing range of freedoms is required. Sen’s views lie in free markets as an essential method of acquiring freedom.
  5. Little Bee: Chris Cleave’s fiction novel, Little Bee, follows the story of two women — one a recent widow from suburban London, and the other is an illegal Nigerian refugee. These women form a tenuous friendship, and as the story develops, Little Bee’s harsh life is recounted. The novel examines the treatment of refugees by the asylum system, as well as issues of British colonialism, globalization, political violence, and personal accountability.

These books will all change your perspective about poverty. They even offer ways in which people can help alleviate poverty, and suggestions for how people should treat each other in order to thrive in this world. Each book tells heartbreaking, but true stories that are many people’s reality, living in poverty and enduring harsh conditions. The books and their dynamic characters will surely affect your perspective on poverty.

– Solansh Moya

Photo: Flickr