Archive for category: Development

Information and stories on development news.

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Human Capital: Ending Poverty in Trinidad and Tobago

Poverty in Trinidad and Tobago
Since 2014, Trinidad and Tobago has taken a special interest in improving human capital through the On-the-Job Training Global Initiative (OJT).

Human capital consists of the skills, knowledge, values and health of a population. An investment in human capital would, for example, come in the form of education benefits, medical care, job training or other ways that add value to a person. On a small scale, these intangible assets are everyday factors to singular individuals. On a large scale, the amount and quality of human capital can make dramatic changes to a country’s economic status for generations. This is especially seen in the increase of entrepreneurs.

The OJT Global Initiative, a partnership between the U.N. Development Programme (UNDP) and Trinidad and Tobago’s Ministry of Tertiary Education and Skills Training (MTEST), initially resulted in 21 individuals being selected to take part in the U.N.’s competitive internship. The program teaches a specially designed curriculum with the goal of creating global citizens.

Richard Blewitt, U.N. Resident Coordinator and UNDP Resident Representative for Trinidad and Tobago, described the importance of the program in an official statement released with its induction. He said, “As you are aware, today’s youth and adolescents are faced with many new and emerging challenges. To effectively respond to and address those challenges, the U.N. seeks to ensure our programming work encompasses; promotes and facilitates opportunities for employment, and entrepreneurship, political inclusion, citizenship, protection of rights, education and reproductive health, and advocacy, to name a few.”

The OJT Global Initiative was first announced in January of 2014 as a two-year initiative. However, since then, the MTEST has maintained the program by pairing up citizen trainees between the ages of 16-35 and employers in a variety of careers — including culinary, agriculture, environmental, finance, engineering and other industries. In addition to gaining valuable experience in their chosen fields, trainees also receive competitive stipends and opportunities to work with new technology and network with industry peers. The program benefits local businesses as well by offering them reimbursement of stipend rates, access to suitable candidates and the chance to practice corporate social responsibility.

The World Economic Forum publishes annual reports of the Human Capital Index (HCI) by country. From 2013 to 2016, Trinidad and Tobago went from ranking 76th in the world to 67th. Programs like the OJT Global Initiative and the MTEST’s strong focus on training, education and entrepreneurship could be a heavy contributor to this rise in HCI over just three years.

The most recent numbers, published by the UNDP in 2007, show that the rate of poverty in Trinidad and Tobago is 16.7% for a population of 1.3 million citizens. This published rate is above the 34% given in 1992. However, The Guardian attributes this reduction to the fact that squatters, students, taxi drivers and the homeless are not accounted for in the labor force. Another major contributing factor to this is expressed in the large wage gap between men and women — with women having an average income of TT$9,000 to a male’s average of TT$18,000. This is attributed to women holding a substantially higher portion of low-wage jobs. The hope of programs like the OJT Global Initiative is to facilitate opportunities for better employment and entrepreneurship, thus reducing problems like the gender wage gap.

Fighting poverty around the globe is a combination of factors. By developing and sustaining programs such as the OJT Global Initiative, countries strive to provide higher levels of education, training and experience for their citizens. Like this program, investments in human capital have the ability to provide a country with economic benefits for generations.

– Tammy Hineline

Photo: Flickr

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Five Youngest Democratic Nations

Democratic Nations

In nations such as the United States, the concept of democracy is sacred as something that has existed for centuries and must be protected. But for many nations around the globe, democracy is a relatively new development. Here are five of some of the youngest democratic nations in the world:

  1. Bhutan
    Once an absolute monarchy in the Himalayan mountains, Bhutan transitioned into a democratic nation in 2008 when its people voted for the first time on the members of its new parliament. Since then, the country has become a constitutional monarchy, with Tshering Tobgay as its current prime minister.
  2. Guinea
    Guinea endured decades of dictatorship before becoming a democratic nation. In 2010, Guinea followed in fellow West African nation Nigeria’s footsteps and had its first democratic election, won by Alpha Conde.
  3. Tunisia
    Democracy has had a tough time taking root in the Middle East, but Tunisia braved the transition in 2011 when the populace successfully rose up and unseated the dictatorship that was in place. Though off to a rocky start, Tunisians are poised to fight for democracy in their nation in the upcoming years.
  4. Myanmar
    After 50 years of military rule, the Burmese junta made way for a new civilian government in 2011, but it wasn’t until 2016 that citizens were able to vote for their first civilian president, Htin Kyaw.
  5. Burkina Faso
    The citizens of Burkina Faso didn’t have their first free and fair elections until November of 2015, making Burkina Faso among the youngest democratic nations in the world.

It’s easy for citizens of the United States to take democracy for granted, especially since it has been a central tenet of American life since the nation’s birth in the late 18th century. But for young democratic nations such as Burkina Faso and Tunisia, democracy is not a birthright, and the fight for it is far from over.

– Mary Grace Costa

Photo: Flickr

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Development Plans Fight Rural and Transient Poverty in Jordan

Poverty in JordanRecent implementation of government programs and grants of foreign aid seek to address infrastructure inefficiency and improve conditions for those still living in poverty in Jordan.

Jordan is a chronically arid country, with less than five percent of land available for farming. For citizens in rural areas, prospects of self-sustainability through farming are limited by the little or no rainfall. Not only do poor farmers have fewer products to sell, they also have less to eat.

Approximately 20 percent of Jordanians live in rural areas where poverty is more prevalent than in urban areas. Approximately 19 percent of the rural population is considered “poor.”

These trends are also compounded by gender inequalities in Jordan. Families headed by women tend to have fewer economic assets than households headed by men. For example, 43 percent of male heads of households receive loans for agricultural development and 14 percent for income-generating activities, while 21 and nine percent of female heads of households receive loans.

According to the 2011-2020 National Employment Strategy, Jordan must overcome several barriers to youth and female employment, including transportation, in order to improve economic conditions for all. Inefficient transport creates disparities between economic city centers like Amman and more rural regions.

These issues reflect some of the obstacles the government’s development program, referred to as Jordan 2025, seeks to address. This initiative began in early 2016 with the Executive Development Plan dedicating nearly $2.5 billion to developmental programs, with almost $300 million devoted to road and transportation development. This focus on improving transportation infrastructure ultimately provides rural citizens with more employment options in major cities.

Beyond rural poverty, one-third of Jordan’s population lives in poverty during at least a quarter of the year. While a 2010 World Bank study found that 14.4 percent of the population lived in poverty, the same study indicated that 18.6 percent of the country’s population experienced transient poverty, including some typically lower-middle and middle-income households.

To help mitigate these issues and boost the slowing economy, the Jordanian government has accepted two loans from the World Bank within the past year. The first, introduced in September 2016, comprised a $300 million package to improve economic opportunities for Jordanians and Syrian refugees.

The second, approved in December 2016, consists of a $25 million contribution from the Global Concessional Financing Facility combined with a $225 million loan to improve energy and water spending as well as improve public service delivery.

“Improving the efficiency of the water and energy sectors, and the consequent savings, will provide the government with the fiscal space needed to invest more in economic development projects and improve the living conditions of citizens,” Jordan’s Minister of Planning and International Cooperation Imad Fakhoury said in an interview with the World Bank.

While these initiatives and international loans have yet to be fully implemented and their impact analyzed, these investments could potentially help diminish poverty in Jordan.

– Casie Wilson

Photo: Flickr

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How the NM Sadguru Foundation Relieves Poverty in Rural India

Poverty in Rural IndiaIn India, one of the world’s most culturally diverse and populous countries, one-fifth of the population lives below the poverty line. Many of India’s poor live in rural areas, where a lack of access to basic resources and social services, high rates of illiteracy and inadequate healthcare contribute to high poverty rates.

The NM Sadguru Water and Development Foundation works to empower those living in nearby rural communities and reduce poverty through sustainable development. The nonprofit works to provide education and training for farmers, implement environmentally-sound structures and build community through farmer organizations and cooperatives.

Before the organization began its work that now spans more than 500 villages throughout the states of Gujarat, Rajasthan and Madhya Pradesh, farming in the semi-arid, drought-prone region could only occur during the three-month monsoon period. The only crop farmers could grow was corn, and they had to migrate with their families to other areas in India to find work as laborers to supplement their income. Making only a few thousand rupees per year, they lived in extreme poverty.

The area transformed when the NM Sadguru Foundation constructed check dams and lift irrigation systems to slow water from nearby rivers, conserve rainwater and distribute the water to various sites through gravitational force. This new system eliminated farmers’ need to walk long distances to find water, which made it possible to farm year-round and enabled farmers to plant a more diverse set of crops.

Farmers who once were only able to grow corn now grow eggplant, spinach, tomatoes, beets, pointed gourd, onions, papaya, mangoes, potatoes, wheat, chickpeas, rice, cilantro and garlic. While the new crops greatly increase their incomes, farmers and their families are now also much healthier. Many farmers have even turned to floriculture, earning six times more harvesting chrysanthemums, marigolds and roses than their income from farming corn.

With an increased profit, farmers and their families are able to do things they never dreamed possible before Sadguru, such as build better homes, buy and raise healthier livestock and even send their children to school.

Aside from improving access to water, the NM Sadguru Foundation also provides sustainable farming education to farmers and even trains them to become community leaders. Farmers can then supervise their villages and surrounding areas, providing training and support to all those in the community.

While this spreads knowledge of the best farming practices quickly, it also empowers rural people who may have been on the bottom of the socioeconomic ladder previously. For example, some women have transformed their entire villages through introducing and developing fruit orchards in their communities.

The NM Sadguru Foundation’s work shows that it doesn’t take much to lift many people out of poverty. Improving access to basic needs creates a ripple effect that expands to impact health, security, income, education and so many other factors. With the right solutions and the proper support to maintain growth, eliminating poverty is something that can be achieved.

– Cassie Lipp

Photo: Flickr

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Economic Development: Reducing Poverty in Mauritius

Poverty in MauritiusOff the coast of Madagascar lies the island nation of Mauritius, teeming with pristine beaches, lush forests and ethnic diversity. Poverty in Mauritius has been reduced to just eight percent of the population since the country has flourished economically after winning independence from the United Kingdom in 1968.

Mauritius is an upper middle-income country with sugar, tourism, textiles and financial services mainly driving the economy. Many international entities, especially those interested in doing business with India, South Africa and China, are attracted to Mauritius.

While most Mauritians were employed in the agriculture or fishing industries at the time of independence, these industries now make up less than 10 percent of the labor force. The majority of Mauritians are now employed in construction and industry or restaurants and hotels. Other services also make up a large part of the labor force.

Mauritius has benefited greatly from the African Growth and Opportunity Act (AGOA) passed by U.S. Congress in 2000. The AGOA allows duty-free exports to the U.S. market. Mauritius has increased exports to the U.S. by 40 percent from 2000-2014.

Like other developing nations, income inequality increased in Mauritius during the rapid industrialization. However, the government has established social welfare programs to eradicate poverty in Mauritius. This includes food stamps, social services, micro-financing to small businesses, female empowerment in the labor market and the ZEP program that seeks to raise primary school exam scores in underperforming schools. The government of Mauritius also provides Social Security for those over 60, free primary and secondary education and free healthcare.

Creoles of African descent are especially vulnerable to poverty in Mauritius. Mauritian creoles are descendants of slaves brought from Africa to Mauritius in the 18th and 19th centuries. Creoles have the weakest sense of identity out of all the Mauritian ethnic groups, as plantation owners intentionally mixed slaves from various ethnic groups together to eliminate any family ties, shared languages or any other forms of social organization.

Studies show that poverty occurs more often in households with a large number of dependent children, female-headed households, single-parent households and single person households.

In 2015 the government began developing the Marshall Plan to eradicate poverty in Mauritius. The plan will focus on:

  • Social protection
  • Housing
  • Social inclusion and community development
  • Access to education
  • Employment for sustainable livelihood, especially for vulnerable groups
  • Youth economic empowerment
  • Access to electricity, sanitation, water, transportation, and ICT (information, communications and technology) services
  • Environmental protection

– Cassie Lipp

Photo: Flickr

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How Global Internet Access Can Alleviate Poverty

How Global Internet Access Can Alleviate Poverty
In 2015, Mark Zuckerberg proposed that global internet access could be the answer to eradicating extreme poverty. From there he pledged to work with the U.N. in acquiring internet access for refugee camps and has continued to launch campaigns and work alongside organizations such as ONE in gaining further global support.

On November 19, Zuckerberg proposed policy recommendations at the Asia-Pacific Economic Cooperation Summit in Peru where he addressed numerous world leaders and politicians. The summit concluded with unanimous support in implementing “accessible, open, interoperable, reliable and secure” global internet access.

Statistics have shown the dire need for internet access in developing countries and have compared accessibility to those in wealthier countries of which 81% of the population have internet access compared to a mere 15 percent in poorer countries. As much as 75% of Africa is disconnected and as a result, the issue has devolved to sexism in which women and adolescent girls are being further discriminated against with internet access. In fact, women in developing countries are “a third less likely” to receive internet access than males and the difference continues to increase.

ONE has recognized the separation in internet access that has been deepened by sexism and has created the Connectivity Declaration,which will gather support for equal, global internet access. Thus far, 76% of ONE’s goal for backer support has been reached— that’s 75,839 names pledged out of 100,000.

By creating a way for global internet access, lives can be enriched and the effects of poverty lessened. At stake for individuals in poor countries with no internet access is a lack of education, limited health information and weakened job opportunities. In wealthy countries such as the U.S., the benefits that come alongside internet usage are taken for granted. In Africa, for example, a pregnant woman could benefit from having internet access in order to receive pregnancy advice and farmers could utilize the internet to predict weather forecasts in order to optimally maintain their crops and income.

Zuckerberg has been a long-standing advocate for widening internet access and has joined the U.N. initiative in eradicating poverty by 2030. The Facebook CEO supports the need for global internet access by claiming that the Internet gives “a voice to the voiceless and power to the powerless.”

– Amy Williams

Photo: Flickr

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New World Bank Funding: Implications for U.S. Influence

New World Bank Funding Structure Has Implications for U.S. Influence
One proposal in a recent Center for Global Development (CGD) report focuses on restructuring multilateral institutions to better suit developmental needs. A new World Bank funding structure presented at the organization’s most recent replenishment conference aligns with CGD directives.

As more nations climb out of extreme poverty, the capacity in which foreign aid is needed evolves.

Experts stated in the Multilateral Development Banking for This Century’s Development Challenges report that “almost all developing countries now rely primarily on domestic resources to manage public investment.” This evolution renders the foundation of World Bank funding, which has historically relied on capital market failure, incongruous with the reality of global development.

Another issue is that major donor countries have most heavily funded health and education initiatives in the recent past. CGD scholars suggest that countries such as the U.S. redirect foreign aid funds to the development of strategic partnerships with recipient nations.

Such redirection is predicated on a donor country’s willingness to overhaul foreign aid policy.

Perhaps more complicated is the fact that the U.S., once a World Bank powerhouse, is now waning in its contributions to the International Development Association (IDA). This indicates that heavy foreign aid revision in the World Bank’s favor is unlikely. Still, the nation continues to play a monumental role in deciding where IDA funds are spent.

According to Scott Morris and Madeleine Gleave of the CGD, the U.S. is often defensive in its appropriation of aid funds. This strategy has global implications. Policymakers in the U.S. have a history of swaying World Bank investment, avoiding nations like Zimbabwe and Iran for its own interests.

As Morris said in his recent report, “Historically, the United States (and often the U.S. Congress) has exerted its will on issues like these by using the threat of withholding its IDA contributions in any given year.” Three years ago, IDA pledges from donor nations accounted for two-thirds of all World Bank resources. Today, it is estimated that they make up less than half. Threats to withhold become obsolete as such pledges hold less weight.

For that reason, a new World Bank funding structure that deemphasizes public-sector donation in favor of affordable lending and private-sector investment is significant. This new methodology took center stage at the World Bank’s most recent replenishment conference.

Reinvigorated partnerships with the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA) and Multilateral Development Banks (MDBs) are key. Such partnerships would allow the World Bank to leverage IDA funds more holistically. The goal is to lend money to more worthwhile causes in a way that’s free from donor country allegiances.

The next step is to incentivize private investors to contribute to infrastructure ventures, which focus on areas like climate and energy. CGD scholars suggest using MDB resources to decrease risk by bridging gaps between sovereigns and investors. Bridging those gaps could get subsidies and grants to developing nations in a system that does not force borrowers to bear full costs.

Many of these recommendations played into the replenishment, which resulted in some of the most dramatic financial reforms in World Bank history. By combining existing resources with donor funds and the capital debt market, the World Bank hopes to respond to developmental needs with greater agility.

One side effect of this new World Bank funding structure is, as Morris points out, a decrease in influence from countries like the U.S. and U.K. that have dictated spending in the past.

While greater multilateral investment from the world’s wealthiest countries would be ideal, this plan addresses the new reality of global development. The unprecedented move could be just what the developing world needs in a time of transition.

– Madeline Distasio

Photo: Flickr

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A History of Australia’s Foreign Aid Program

Australia's Foreign Aid Program
Australia’s foreign aid program has seen many changes since it first became a single government agency in the 1970s. Besides the name, changes have taken place within the program’s administration, its focus, the countries that receive aid and the type of aid provided.

Australia provided aid to other countries well before there was an official government program. In the 1950s, Australia granted aid to Papua New Guinea in the form of grants and to South and Southeast Asia by way of educational scholarships and assistance with employment.

In 1974, under Prime Minister Whitlam, Australia established the Australian Development Assistance Agency (ADAA) as a single government entity that would administer the country’s aid. Since that time, the name of the program has changed several times, first to the Australian Development Assistance Bureau (ADAB), then to the Australian International Development Assistance Bureau (AIDAB), then to the Australian Agency for International Development (AusAID) and finally to its current name, Australian Aid.

In 2010, Australia established AusAID as an executive agency within the Department of Foreign Affairs and Trade. In Australia, an executive agency is separate from its department for staffing, accountability and reporting purposes. However, the 2013 change to the country’s current program, Australian Aid, integrated the executive agency into the Department of Foreign Affairs and Trade so that it was no longer a stand-alone agency.

In a 2014 press release, the Australian Minister for Foreign Affairs, Julie Bishop, introduced Australian Aid: “The Australian Government’s new approach to overseas development assistance will focus on ways to drive economic growth in developing nations and create pathways out of poverty. Strict performance benchmarks will ensure aid spending is accountable to taxpayers and achieve results.”

The program incorporated a new development policy that focused on promoting prosperity, reducing poverty and enhancing stability. A new performance framework, Making Performance Count, enhanced the accountability and effectiveness of Australian aid by establishing performance benchmarks and impact assessments in targeted aid areas.

Australia’s foreign aid program will also have a new focus on the Indian Ocean and Asia-Pacific regions. In 2014, Minister Bishop gave a speech in which she further explained the reason for the change in focus. “In the past, [our aid program] has been spread far too thinly across the globe…We must direct our aid to where we can make the biggest difference and align it with our national interest.”

According to preliminary data from the Organization for Economic Cooperation and Development (OECD), Australia’s official development assistance (ODA) was $3.22 billion in 2015, which was 0.27 percent of their gross national income (GNI). The United Nations adopted a resolution in 1970 stating that ODA spending in developed countries should be at least 0.7 percent of GNI. Preliminary data from the OECD shows that only Sweden, Norway, Luxembourg, Denmark and the United Kingdom met that target in 2015.

– Kristin Westad

Photo: Flickr

Rising Middle Class in Emerging Countries Promotes Global Air Traffic

Rising Middle Class in Emerging Countries
One sign of the rising middle class in emerging countries is the optimistic projection for the global airline industry. An industry study conducted by analyst DKMA indicates that airline passenger traffic should double by 2035. More than half of the eight billion additional passengers will come from the Asia-Pacific, and 70 percent of future traffic growth will come from the new middle class in emerging countries as more people leave poverty.

The airline industry will be the latest to catch the rising wave of the global middle class. Other “connection” industries that are riding this wave include the cell phone industry, with seven billion devices in use around the world, and the internet, with 3.2 billion people connected to it and each other, according to the Wall Street Daily. In fact, internet users in developing nations outnumber those in developed nations two to one.

Middle class growth drives economic change as people leave poverty. Just 25 years ago, one-quarter of the population of emerging countries lived in extreme poverty, getting by on less than $1.25 per day. Today, that number has been more than halved. Just 10 percent live in extreme poverty. In the last two years alone, 100 million households in emerging countries moved from poverty to the middle class, according to a report by Credit Suisse.

The global middle class now numbers more than 1.8 billion. If current trends of falling poverty continue, the middle class will reach 3.2 billion by 2020 and 4.9 billion by 2030, according to the OECD Observer.

Consistent with the airline study projections, most of this growth is projected to take place in Asia. Asia is anticipated to be responsible for 66 percent of the global middle class population by the end of the next decade, up from 28 percent at the end of the last decade, and the continent will account for 59 percent of all consumption by the middle class, up from 23 percent.

The OECD reports that over the next 20 years, the Asia-Pacific market is projected to grow at a 5.3 percent rate; the Middle East, at a 5.2 percent rate, and Latin America and the Caribbean at a 4.7 percent rate. Further, there will eventually be more passengers on planes from emerging countries such as India and Indonesia than from long-time market leaders Japan, Germany and the United Kingdom, according to DKMA.

The booming air traffic economy in emerging countries could have positive economic effects on the ground. Airports will need to invest in new construction or renovations and increase staff and services to keep up with the greater demand. This economic trend has the potential to further influence global poverty rates in the future, demonstrating the way positive progress toward ending global poverty continues to impact the world.

– Robert Cornet

Photo: Flickr

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Virtual Reality Can Affect Global Poverty

Virtual Reality Can Affect Global Poverty
Although the technology of virtual reality (VR) is still in its infancy, it is steadily growing more advanced and more easily available to the public. VR is opening up all kinds of new opportunities and experiences, and they’re not just limited to video games – people around the world are finding that virtual reality can affect global poverty.

VR has made a strong impact in such fields as healthcare, manufacturing and even insurance. Many around the world see no reason why these advances shouldn’t also address humanitarian needs.

Researchers have found that virtual reality is incredibly powerful at building the feeling of empathy in users, which gives it obvious appeal to those in the non-profit world. With its ability to connect users to other people, the technology can make unprecedented strides in shining a light on the plight of millions.

According to Jeremy Bailenson of Stanford University, “Virtual reality transforms relationships that tend to be abstract to become visceral. Our research has shown that making this cause and effect relationship perceptual, as opposed to theoretical, changes consumer and other behaviors more than other interventions.”

Some non-profit organizations are now taking advantage of the fact that virtual reality can affect global poverty. HOPE International has found success by reaching out to potential donors with the technology by showing them exactly what problems their donations will be addressing. Boosted levels of empathy generate more contributions, helping to make a significant dent in global need.

Another organization, Trickle Up, combats poverty in some of the world’s poorest countries also by using virtual reality. By introducing VR experiences to donors at a fundraising gala, the organization was able to connect supporters to a local shop owner in Guatemala whose business would benefit from their donations. Trickle Up’s Communications Officer, Tyler McClelland, noted that having VR at the event increased interest and made guests more excited about the cause.

Some have taken the involvement of virtual reality in the humanitarian world to an even more interesting level. Chris Milk of UNICEF partnered with Samsung in 2015 to create Clouds Over Sidra, a virtual reality film that follows a 12-year old girl, Sidra, through her day-to-day life in the Syrian refugee camp of Za’atari in Jordan. Winner of the 2015 Doc/Fest Award, the film breaks barriers in the documentary world, making the VR viewer an interactive participant.

While there is much time and research yet to spend on the technology, early success strongly indicates that virtual reality can affect global poverty. It has the power to break down walls and, as the creator of Clouds Over Sidra said, it “connects humans to other humans in a profound way I’ve never before seen in any other form of media, and it can change people’s perception of each other. That is why I think virtual reality has the potential to actually change the world.”

– Emily Marshall

Photo: Flickr