Archive for category: Development

Information and stories on development news.

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China’s Rising Economy

China’s April-to-June quarter results have proved that the country is growing economically. China’s rising economy has expanded 7.5 percent in the past year, on target with the government’s goal, and retail sales and factory output has risen even just in the month of June.

This change is positive, but was somewhat expected, as China’s government has created a plan to boost economic growth. These quarterly results simply reaffirmed that they are on the right track.

Dariusz Kowalczyk, a senior economist in Hong Kong, said regarding the results, “The Result is very good and shows the economy has recovered very well in the second quarter.” He also confirmed that the improvements were the result of the “targeted stimulus measures undertaken by the Chinese authorities.”

This boost has come after a recent decline in China’s economy due to lowered demands of exports. The economic lull inspired the government to increase consumption domestically and rebalance their growth model.

One of the changes made to boost the economy was to lower the Reserve Requirement Ratio (RRR,) the cash amount required by banks to keep in reserve in order to have money to lend to agriculture related businesses and smaller companies. Smaller companies also received cuts on their taxes.

While the growth is something to celebrate, China still needs to practice caution. The growing economy may be completely dependent on the stimulus changes, and the momentum could easily fade. Chang Jian, an analysist with Barclays, stated that, “…the recovery is quite dependent on government support”.

There is also the question as to how genuine the rising economy is. The property sector, making up about 16 percent of China’s GDP, is going through a downturn. The government is working on taking out “shadow banking,” where alternative lending and finances are given outside of the government. House sales have fallen 9.2 percent. While these facts should be lending to a shrinking economy, the economy continues to grow, putting it under speculation by some.

Some believe that the numbers are inflated, and that the GDP has truly only expanded by 6 percent rather than 7.5 percent. Some economists worry that the growth will plateau, or that the government’s stimulus work will not be enough to sustain the momentum.

One thing to hope for is that the economy’s growth will continue because of these changes, even without the government continually tending to it.

Banks have been encouraged to lend more willingly to companies that export goods, which should increase exports over time.

China also plans to build railways, roads and airports along the Yangtze river, which would enable the country’s less developed areas to more easily reach Shanghai, giving economic opportunity to a larger variety of citizens.

Only time will tell if the rising economy of China is genuine and long lasting. This growth, or lack of growth, will surely affect the global economy as well.

– Courtney Prentice

Sources: BBC, Time, The Asashi Shimbun
Photo: Opinion-Maker

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Halving Global Poverty Remains Elusive


Although the world has made headway in alleviating global poverty, about one in five of the world’s poor live on less than $1.25 per day, according to the U.N. Millennium Development Goals report 2014.

The United Nations stated that even though the goal of halving global poverty before 2015 has been achieved, progress on poverty alleviation is lopsided across regions. “Some regions, such as Eastern Asia and South-Eastern Asia, have met the target of halving the extreme poverty rate, whereas other regions, such as sub-Saharan Africa and Southern Asia, still lag behind.”

In South Asia and Sub-Saharan Africa, 30 and 48 percent, respectively, of people live on less than $1.25 a day, respectively, compared to 51 and 56 percent in 1990. But while South Asia has made significant progress on the Millennium Development Goals (MDGs,) it will require more effort to achieve targets to help the world’s poor by the end of 2015.

Lise Grande, U.N. Development Program representative in India and United Nations resident coordinator, emphasized that the MDGs cannot be reached if poverty is not alleviated in India. “The new post-2015 framework cannot succeed if it does not reflect the aspirations, and does not have the commitment and support of India,” she said. One third of the world’s poor live in India alone. The people of India hope that their new Prime Minister, Narendra Modi, will rejuvenate the slow economy and alleviate poverty for millions.

Despite China making significant progress in decreasing the poverty rate (12 percent compared to 60 percent two decades ago,) China ranks second behind India in the largest share of the world’s poor. Besides these large populous countries which have high numbers of extreme poor, extraordinary poverty rates are found in areas that are fragile and tense, like the Democratic Republic of the Congo (5 percent,) Bangladesh (5 percent) and Nigeria (9 percent).

Many MDG goals focusing on achieving gender equality in schools, increasing access to better water sources, improving the lives of slum dwellers and reducing poverty have already been met, according to the Millennium Development Goals Report 2014. But there is still a ways to go.

– Colleen Moore

Sources: moneycontrol.com, Daily Times
Photo: DW

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Education in Tanzania: 10 Important Facts

Tanzania has seen tremendous growth and progress in the education sector over the last decade. However, despite rapid expansion in primary and secondary school enrollment, the country’s education system continues to struggle to deliver quality education and to keep its children in school. Below are some facts about education in Tanzania:

1. Growth in Education

According to a census report, 94 percent of children aged 7 to 13 were enrolled in primary school in 2011. Only 59 percent of children were enrolled in primary school in 2000.

2. No Fees

This incredible jump in enrollment is due in part to Tanzania’s abolition of primary school fees in 2001.

3. MDGs

Today, Tanzania is said to be on track for meeting the United Nation’s Millennium Development Goal for male and female enrollment in primary and secondary schools.

4. Class Size

Due to rapid enrollment numbers, Tanzania faces extreme overcrowding within its classrooms. The average government primary school classroom holds 66 pupils. In some areas of the country, there can be as many as 200 pupils in a single classroom.

5. Student:Teacher Ratio

While the number of enrolled students continues to grow, a corresponding increase in qualified teachers does not. The pupil to qualified teacher ratio remains 49:1 in Tanzania.

6. Student:Latrine Ratio

The pupil to latrine ratio is an even larger culprit when it comes to factors that hinder Tanzanian children’s education—for girls, especially. On average, there is 1 toilet for a collective 54 boys and 51 girls. This ratio — far below the normal pupil:latrine ration of 25:1 — affects not only attendance but also performance in Tanzanian schools.

7. Special Education

There is no system today in Tanzania for the identification of, assessment of, or support for children with mental or physical disabilities within government schools.

8. Drop Out Rates

In 2010, 68,000 children dropped out of primary school, and 66,000 children left secondary school early.

9. Pregnancy

Also in 2010, 7000 girls dropped out of primary and secondary schools due to pregnancy.

10. Exams

Only half (53.5 percent) of students passed the primary school’s leaving examination in 2010; the majority of children who passed the examination were boys.

Though the statistics that reflect the enrollment growth are impressive, the system supporting education in Tanzania is decrepit, if not dysfunctional. With one of the highest net enrollment ratios in Africa, there is much potential to empower Tanzanian children and adolescents, helping them to attain the education necessary to break the cycle of poverty. For the thousands of children who begin, but never finish, their schooling, education reform must remain at the forefront of the Tanzanian government’s agenda.

– Elizabeth Nutt

Sources: UNICEF, USAID
Photo: HNKC News

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Mexican Auto Industry Speeds Past Brazil

Brazil’s rule as Latin America’s auto king is coming to an end as Mexico positions itself for a dramatic increase in factory output over the next 10 years. Brazil has enjoyed its decade at the top of the auto industry in Latin America but is currently experiencing a slump in domestic consumer demand. A simultaneous boom in U.S. demand — the primary export market for the Mexican auto industry — has paved the way for Mexico to speed past Brazil in auto production.

Brazilian-made cars are typically not shipped abroad due to high labor costs and taxes, meaning that the South American giant’s auto market is driven mostly by domestic buyers. Output in Brazilian auto factories has fallen 17 percent this year already, and light-vehicle exports have fallen 52 percent since June 2013. Brazil‘s exports to its top trading partner Argentina plummeted nearly 30 percent in May, according to Anfavea, Brazil’s automaker association. Additionally, a weakened economy and tight credit are dissuading Brazilians from purchasing new vehicles.

On the other hand, Mexico’s promising growth in the auto sector is due in large part to its proximity to the United States. New and prospective plants in Mexico are predicted to add 1.5 million units of vehicle capacity through 2019, increasing vehicle production from nearly 3 million units in 2013 to almost 4.5 million units by 2019. Much of this 50 percent increase will be oriented toward U.S. consumers.

Auto companies Nissan, Mazda, Toyota, Honda, Audi, Mercedes-Benz, Infiniti and BMW are all expanding into Mexico, drawn by cheap labor and available capacity for compact and subcompact car production. European companies are particularly lured by free trade agreements with Mexico that create favorable climates for export to Europe.

The real drive behind the Mexican boost in auto production, however, comes from across the northern border. Car makers in Mexico earn 20 cents for every dollar made by U.S. laborers.

Joe Langley, the chief analyst for North America vehicle production forecasting at IHS Automotive observes, “Because these new models are lower-priced vehicles, the factories need to be in a market where labor is inexpensive, which Mexico’s certainly is. But they still need to be very close to the main market, which is the United States.”

The surge in auto production in Mexico, fueled by U.S. demand for cheap labor and small cars, involves significant foreign investment and has the potential to boost Mexico’s economy tremendously. However, Mexican factories, known as maquiladoras, have a reputation for dropping the ball on worker’s rights. The debate continues on whether more jobs with meager pay, harsh hours and poor working conditions are better than no jobs.

– Kayla Strickland

Sources: BusinessWeek 1, BusinessWeek 2, Automotive News
Photo: The Detroit Bureau

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WASProject: 3D Printers

The company WASProject is pursuing an innovative idea: it will develop materials to build homes by using 3D printing technology.

WASProject – which stands for “World’s Advanced Saving Project” – is based in Italy and has already produced an impressive line of distinct and advanced 3D printers.

However, the team now has even bigger dreams focused on impacting lives. The money accumulated from selling the previous printers was used to finance a bigger printer – created with the noble goal of providing housing to those living in developing nations.

The company’s main objective is, “to produce a big Delta Robot, capable of printing huge objects and use this machine to produce housing structures or housing modules, using natural materials such as clay, soil, natural powders, mixed with resin, etc,” said WASProject team member Sebastiano.

The Big Delta 3D printer already made its debut in 2013 at the Rome Maker Faire, which considers itself the “World’s Largest Show Festival” and is sponsored by Intel, the reputable semiconductor chip maker.

The basic goal of the Big Delta is to produce building material for houses made of clay. The building material is created by inserting a mixture of soil, water and oil into the printer in order to print out the pieces of clay housing structure.

The Big Delta is incredibly versatile. It will not necessarily be confined to printing the same housing structures, and therefore, can prevent the creation of a monotonous and dull neighborhood of tract houses in these developing countries.

In developing areas, such as Latin America, Sub-Saharan Africa and Southeastern Asia, many families live in poor conditions, with little or no access to energy or sanitation. These areas are often also affected by floods and landslides.

With new technology and social inventions, devices like the Big Delta can be utilized to address these issues of sustainable housing that millions of people throughout the world face.

A properly established housing structure serves as a launching pad to address other pressing issues. For instance, after the problem of housing is dealt with, the issue of proper sanitary structure can be implemented, including access to latrines and clean water.

The Big Delta has the potential to improve the economy of a region by providing work to the citizens to boost the demand for labor. While the printer only prints structures, human hands are needed to piece them together to build the homes.

– Christina Cho

Sources: WASProject, 3DPrint
Photo: Wikipedia

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Six Successes of Plant With Purpose Around the World

Plant With Purpose is a San Diego-based Christian development organization. It assists the impoverished living in rural areas “where poverty and environmental degradation intersect” globally.

Through agricultural training, restoring the land and providing financial education, Plant With Purpose helps poor farming families become self-sufficient. To date, they have helped plant 11.9 million trees since their founding in 1984.

Plant With Purpose is currently present in more than 325 communities, providing aid and support to over 17,132 individuals within Burundi, the Dominican Republic, Haiti, Mexico, Tanzania and Thailand.

Location: Davi, Haiti

The Need: In Haiti, only 2 percent of its original forestry remains. Eighty-four percent of the population lives in poverty, and the country imports 60 percent of its food needs. Half of Haitian children under 5 are undernourished. With the help of Plant With Purpose, smallholder farming families are planting trees, implementing soil conservation methods and preventing soil erosion. Locals are educated on sustainable agriculture methods that restore the land and increase their food production and incomes. Village Savings and Loan Associations are also implemented.

Instead of providing food aid, Plant With Purpose is educating for self-sufficiency.

The communities in Davi are facing particular hardships. Floods and landslides cause destruction every rainy season, washing away the fertile topsoil and preventing farmers from growing crops. Families are forced to migrate to cities to find work. Plant With Purpose is working to reverse deforestation through its various methodologies.

Progress: Assisted families showed a 46 percent decrease in cholera and a 50 percent decrease in typhoid, compared with others. They also now actively save cash four times more frequently. They cultivate about 20 percent more land, own 30 percent more land and protect 20 percent more land through reforestation or erosion control.

These families also plant about three times as many trees as non-assisted local families.

Location: Panasawan & Pang Dang Nok, Thailand

The Need: The government of Thailand refuses to recognize many hill tribe members as citizens. Thus, they have few legal rights. They also have limited access to healthy fields, leaving them to grow crops on devastated hillsides. Plant With Purpose has been working with these communities to help them learn sustainable farming techniques and advocate for legal status in Thailand.

The village of Panasawan suffers from extreme poverty and a destroyed environment. Soil erosion, poor water quality and sanitation, difficult access to land rights and lacking availability of credit has ensnared the community in the cycle of poverty and environmental degradation. Plant With Purpose is providing farmers with environmental and financial training and economic opportunities necessary to break the cycle.

Progress: Hill tribe farming families are gaining access to land and basic rights. Village Savings and Loan Associations are providing a means to save and gain credit. Plant With Purpose is also helping congregations better meet the needs of their communities by training leaders.

Families aided now have twice as many children enrolled in high school, are 31 percent more likely to actively save cash, are 41 percent more likely to own land that is protected, have planted 2.5 times more trees, have shown a 19 percent decrease in admitted gambling and are 20 percent more likely to eat meat, eggs or fish on a daily or weekly basis.

Location: Lyasongoro, Tanzania

The Need: In Tanzania, Plant With Purpose mainly works with women, many of whom are widows or single mothers, because women and children there represent the poorest segment of the communities. Roughly 98 percent of these women who work earn through agriculture, but because they don’t have access to the same training their male counterparts receive, their yields suffer.

Plant With Purpose  provides agricultural training, which doubles crop output, and plants over a million trees each year around Mt. Kilimanjaro. They are also establishing Village Savings and Loan Associations.

Progress: Assisted families showed a 65 percent decrease in diarrheal disease and a 70 percent decrease in typhoid incidence. It’s also true that 99 percent of these families actively save cash, compared with 48 percent previously, and 50 percent have enough savings to cover household expenses for six months, compared with 6 percent previously.

Of participant families, 80 percent own cattle, which is 42 percent higher than those not assisted, and 66 percent of participants earn some household income through microenterprise endeavors, a significant 43 percent higher than those who were not trained.

Location: El Café, Dominican Republic

The Need: While the Dominican Republic is gaining wealth, there is a growing gap between the rich and poor. The most impoverished, deforested regions exist near the border of the Dominican Republic and Haiti.

The Dominican government relies on Plant With Purpose to help with their reforestation programs.

El Café mainly profits off of its oregano crop, but recent deforestation threatens this trade. Plant With Purpose is helping to replenish the soil and diversify their economy. The organization has started a nursery, growing seedlings, fruit trees and other plants to replenish the forests and provide an additional source of income. Plant With Purpose has also provided a solar drier to villagers to convert their oregano into a marketable good. They are also offering workshops teaching sustainable farming and land conservation methods.

Progress: Families who work with the organization own twice as much land and protect 75 percent more land than non-participant families. These households are 60 percent more likely to own cattle as well.

Cacao, a valuable cash crop, is harvested 30 percent more often by Plant With Purpose farmers than other locals. Assisted families have planted almost three times as many trees than before.

Location: Kiremba, Burundi

The Need: In the world’s hungriest country, 80 percent of Burundi’s 8.5 million people live below the poverty line. At least 90 percent of Burundians depend on agriculture, but their farmland has been devastated by deforestation, drought, war and over-farming. Plant With Purpose is helping these farmers access land and maximize their productivity. They are also working with agriculture research institutions to provide disease-resistant crops. Through the introduced Village Savings and Loan Associations, villagers are saving their money and providing loans to others.

Progress: Plant With Purpose reports that 95 percent of farmers in associations have shared their knowledge with other farmers; each farmer shares with an average of 23.5 people. Participants are 24 percent more likely to save cash than non-participants, have planted three times as many trees as non-participants and have harvested 31 different crops, compared with 20 crops harvested by non-participant farmers.

Location: Tamazola, Mexico

The Need: In Oaxaca and Chiapas, two of the poorest states in Mexico, more than 75 percent of indigenous people live in extreme poverty. As men migrate to find work elsewhere, women are frequently left to care for their children and households.

Plant With Purpose is teaching families in rural communities to plant vegetable gardens that will increase their food production and incomes. Village Savings and Loan Associations have also been established to provide financial security and opportunity.

Progress: Plant With Purpose reports that participant households actively save cash 68 percent of the time, while non-participants save cash only 45 percent of the time, with participants being 43 percent more likely to have enough savings to cover six months of needs. Seventy-seven percent of participants own cattle, compared with 51 percent of non-participants, with the number of cattle owned by participants being twice that of the number owned by non-participants. Only seven percent of participant households have dirt floors in their homes compared with 29 percent of non-participant households. Participant farmers harvested 22 different crops, compared with eight by non-participants.

Plant With Purpose has seen measurable success from its efforts, objectively putting donations to good use. If seeking an effective, Christian-based charity that assists the poor on the ground, look no further. Personal contributions can be guaranteed to yield maximal benefit in the hands of this organization.

– Elias Goodman

Sources: Charity Navigator, Plan with Purpose, Scribd
Photo: New Identity Magazine

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Hunger in Botswana

Botswana is undoubtedly one of Africa’s greatest success stories. After the country gained independence in 1966, it experienced robust economic growth and now boasts consistently high gross domestic product growth rates. Indeed, Botswana’s gross national income per capita for 2013 was $7,730, ranking it above South Africa and well above the average for Africa.

Although Botswana’s economic performance is relatively high, it is not without social problems. According to the World Bank, just under a third of the country’s population lives in extreme poverty, and much of the country’s wealth lies disproportionately with the richest 20 percent of the population.

Part of Botswana’s economic success since independence lies in the government’s pro-poor policy making.

“Each and every Batswana [citizen] has a right to land for residential and agricultural purposes,” said the Southern African Regional Poverty Network. “Within customary tenure areas,which comprise 79 percent of all land and which are controlled through a decentralized system of locally elected Land Boards, land is allocated for free.”

Botswana does not face extreme hunger problems due to its equitable land policies and extensive social safety programs.

According to the Food and Agriculture Organization of the United Nations, undernourishment, the measure of the shortfall of nutrition in the average adult’s diet, is measured from the number of kilocalories missing from the diets of undernourished people in a given country. In Botswana, the depth of hunger, measured by the average dietary energy deficit of undernourished people, is 240 kilocalories.

In other words, the average undernourished individual in Botswana needs an additional 240 kilocalories to maintain a healthy diet. Although Botswana does not suffer the severest form of undernourishment in the world, it ranks below average.

Moving forward, hunger in Botswana may deepen if not properly addressed, as several problems exist. For starters, rapid urbanization in Botswana means domestic food production is likely to decrease, as rural farmers move to urban areas for employment. Fewer domestic farmers mean the country will need to import more food to meet its nutrition demands, increasing the cost of food (the country already imports 90 percent of its food, a disastrous reality susceptible to global food price fluctuations.)

Furthermore, rising energy prices exacerbate the cost of food production, and infrastructure, including roads and power lines, could certainly be improved.

If current trends continue, Botswana’s hunger issues will worsen based on food prices and agricultural developments. However, like many other countries in Africa, Botswana will need to look inward to creative development solutions to propel its population forward out of food insecurity.

– Joseph McAdams

Sources: Aljazeera, BBC, World Bank 1, World Bank 2, UNDP, SARPN, UN, FAO
Photo: Aljazeera

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SDGs: Future of Development

2015 will mark the target year for the United Nations Millennium Development Goals (MDGs,) a set of eight development objectives set by world leaders as a commitment to reduce extreme poverty worldwide. The current goals seek to:

The U.N. recently released the 2014 MDG Annual Report, in which it applauds progress toward the Millennium Development Goals, encourages continued effort for the initiative’s remaining year and lays the groundwork for a post-2015 development agenda. The new set of goals, referred to as the Sustainable Development Goals, ambitiously aims to “end poverty everywhere” by 2030. A zero draft was released on June 2, in which the Open Working Group laid out 17 post-2015 goals. Concerns have been raised over the length of the draft and the abstract nature of the objectives, which are listed as follows:

  • End poverty everywhere
  • End hunger, improve nutrition and promote sustainable agriculture
  • Attain healthy lives for all
  • Provide quality education and life-long learning opportunities for all
  • Attain gender equality, empower women and girls everywhere
  • Ensure availability and sustainable use of water and sanitation for all
  • Ensure sustainable energy for all
  • Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all
  • Promote sustainable infrastructure and industrialization and foster innovation
  • Reduce inequality within and between countries
  • Make cities and human settlements inclusive, safe and sustainable
  • Promote sustainable consumption and production patterns
  • Tackle climate change and its impacts
  • Conserve and promote sustainable use of oceans, seas and marine resources
  • Protect and promote sustainable use of terrestrial ecosystems, halt desertification, land degradation and biodiversity loss
  • Achieve peaceful and inclusive societies, access to justice for all and effective and capable institutions
  • Strengthen the means of implementation and the global partnership for sustainable development

One notable characteristic of the proposed list of SDGs is its emphasis on science and technology. The draft touches on issues of climate change, water sanitation, energy supply, biodiversity preservation and ocean conservation. Where the document falls short, according to voices in the scientific community, is in its implementation section, which fails to explicitly define the strengthening of science and technology in developing countries as a key focus. Yet, besides the arguments between scientific and political pundits, the trajectory of the SDG project is clear. As published in the SDG zero draft, “we recognize that poverty eradication, changing unsustainable and promoting sustainable patterns of consumption and production and protecting and managing the natural resource base of economic and social development are the overarching objectives of and essential requirements for sustainable development.” – Kayla Strickland Sources: United Nations 1, United Nations 2, SciDev.net 1, SciDev.net 2 Photo: Reegle

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“The Drinkable Book”

When Theresa Dankovich began researching the sanitizing potential of silver nanoparticles in 2008, little did she know that her work would contribute to “The Drinkable Book.” The book is actually a filtration kit equipped with a filter box and a book with pages that offer sanitation advice and function as filter sheets.

Designed by researchers at the University of Virginia, Carnegie Mellon University and WATERisLIFE (a nonprofit dedicated to providing clean water, sanitation and hygiene services worldwide,) “The Drinkable Book” operates as a cheap purification kit that eliminates 99.9 percent of bacteria found in water — comparable to the quality of tap water in the U.S. Each page from the book can filter up to 100 liters of water, and each book has 20 sheets of paper. That’s enough clean water to last one person’s needs for four years, WATERisLIFE claims.

But how does it work exactly? The book is printed like any other, except the pages are lined with silver nanoparticles, which costs only a few extra cents. As needed, one can rip out a half-sheet of paper from the book, place it in the filter box, which also serves as the book’s cover, and allow the silver ions to attach to and kill harmful bacteria. The water seeps through the paper, leaving it safe to drink. Tips for clean drinking are also printed on every sheet with food-grade ink.

Dankovich, the chemist who conceived the idea, says the product is one of the cheapest ways to make water safe to drink. “It doesn’t require power and it’s very intuitive,” she said.

Last year, Dankovich field-tested the product in South Africa, and she now plans to take it to Ghana for more tests. “Our main goal is to reduce the spread of diarrheal diseases, which result from drinking water that’s been contaminated with things like E. coli and cholera and typhoid,” Dankovich said.

For the 3.4 million people who die each year from water-related diseases, the innovative product offers renewed hope. It’s cheap to produce, inventive and one of the niftiest products WATERisLIFE has seen in recent years.

“The Drinkable Book” has the potential to enhance the lives of an untold number of individuals worldwide. But the implications don’t stop there. Women spend a collective 200 million hours a day to find and collect water that is safe to drink. If those same women had access to “The Drinkable Book,” millions of hours would be saved — hours that could be used for work, education and social activities to enrich and extend the lives of family members.

– Joseph McAdams

Sources: Wired, NPR, Adweek, Water.org
Photo: Wired

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The Power of 12 Dollars

12 dollars
Before the 1990s, many people disapproved of giving unregulated cash to the poor. People feared that handing out checks would lead to corruption, waste and an increase in drug and alcohol abuse among the impoverished.

However, the increasingly popular cash grant programs that have appeared in countries such as Brazil and Mexico are disproving these stigmas. Those in extreme poverty receive invaluable benefits from cash grants of as little as 12 dollars per month. When desperately needy individuals get small monthly cash transfers, research shows that better health, education and smarter overall life decisions will follow.

Michelle Adato has studied the impact of cash transfers for many years. She reveals, “Cash grants are now being seen as a part of a comprehensive development strategy as opposed to just a safety net.” What was previously thought of as a short-term solution is proving to have longer, more sustainable results.

When individuals and families receive grants, such as South African child support grants and those from The Transfer Project led by UNICEF, they can buy things they really need such as food, clothes and an education for their children. Extended grants to adolescents have proven to decrease risky sexual behavior, thereby reducing the chances of teen pregnancy and HIV, by 63 percent.

John Hoddinott, a deputy director at the Washington-based International Food Policy Research Unit, argues that cash grants not only give the poor a means to buy necessary survival items, but they “give beneficiaries a base from which to make longer term investments.”

“The research shows that in the vast majority of cases, poor people use their money well — the evidence is unambiguous.”

The Transfer Project, which runs programs across Sub-Saharan Africa, operates on the premise that income poverty has highly damaging impacts on human development, and that cash empowers people living in poverty to make their own decisions on how to improve their lives.

Those receiving grants from The Transfer Project in Zambia, Ghana and Malawi “all reported being happier with their lives, and research showed that recipients in these countries were eating better too.”

The child support grant in South Africa has expanded to include 17-year-olds, and now reaches 11 million children. The U.N. reports that a total of 20 African countries have social protection programs like these and both the number of countries and size of the programs are growing, with Kenya, Zambia, Lesotho, Mauritania, Mali, Niger and Zimbabwe all expanding their programs.

In many ways, the initial skepticism of cash grant programs have only served to increase scrutiny and research, in turn strengthening them. Handing out cash rather than food and supplies empowers the impoverished to make their own choices and invest the stipends wisely. The widespread success of programs like The Transfer Project and the South African child support grants is a testament to the power of a small amount of money on lifting the poorest of the poor out of dire living conditions and into a brighter future.

– Grace Flaherty

Sources: CPC, IRIN News
Photo: Poke