Africa leads the world in annual population growth, but unfortunately produces the least amount of electricity of any continent. To mitigate this issue while being mindful of the continent’s vulnerability to climate change, African leaders are working to exploit natural energy sources. Recent efforts have begun to focus on establishing plants for geothermal energy in Africa. This involves harnessing energy from the Earth’s heat by digging underground. The east coast of Africa, home of the East African Rift System (EARS), presents a viable location for achieving this endeavor due to its geographical properties: this 6,500-kilometer stretch of progressive breakage in the Earth has constantly shifting plate tectonics that generate a large, renewable source of energy. Nations worldwide are coming together to help develop strong geothermal energy systems in Africa, with Iceland leading the way.

The Need for Electricity Access in Africa

Electricity access plays a significant role in lowering poverty in Africa. A study conducted by The World Bank found that affordable electrification can raise average household income by increasing farming and manufacturing production during off-seasons, as well as helping businesses create efficient services for production and expansion. Expanding electrification encourages economic investment, increases GDP per capita and creates jobs. For instance, when South Africa enacted an electric grid roll-out to poorer communities, the country experienced a 40%-53% boost in business activities due to heightened electricity access. Overall, generating electricity in impoverished areas will enhance economic capabilities and increase sustainability.

Potential for Geothermal Energy in Africa

The EARS is located in northern Syria and runs south to Mozambique. Countries along this rift include Ethiopia, Tanzania, Kenya, Rwanda, Eritrea and Uganda. These countries would benefit immensely from the rift’s geothermal energy since, depending on the country, only 35%-75% of the population had reliable electricity in 2018. In fact, initiatives like the African Rift Geothermal Development Facility project were designed to address this exact disparity using geothermal energy. The project’s goal is to gain access to untapped geothermal energy for these countries along the rift. The United Nations Environment Programme pledged $4.75 million for this official start-up in 2015. The project has had success so far in networking with other countries and attracting investors for financial support.

Geothermal energy in Africa is necessary to supplement the general lack of electricity. It is also essential to shift away from the other, less sustainable power sources currently in use. Coal is one of the most environmentally detrimental types of fuel, for example. Despite this fact, South Africa relies on coal-burning as its primary energy source; only 8.8% of the country’s electric needs are fulfilled by renewable energy. Coal-burning and other non-renewable techniques endanger Africa’s people and climate by polluting the air with various heavy metals.

Iceland Empowering Africa

Iceland, however, is a pioneer in geothermal energy: the country’s electricity obtains its power almost entirely by renewable resources. The country is currently advocating the creation of geothermal energy in Africa through several projects.

1. Geothermal Training Programme (GTP): In collaboration with the United Nations, this six-month annual postgraduate training program teaches individuals from developing countries about geothermal construction and exploration. Between 1976 and 2016, about 39% of graduates originated from African countries. This demonstrates the impact of the GTP in fostering geothermal potential through the next generation of innovators.
2. African Women Energy Entrepreneurs Framework: With a focus on addressing the barriers that hinder women as entrepreneurs in business, this project was launched in 2017 to support innovative environmental solutions in Africa and promote gender equality within the energy sector. Women are trained in sustainable energy technologies and management in order to create renewable energy policies and partnerships.
3. Africa Geothermal Centre of Excellence (AGCE): Currently in the preliminary stages with help from Iceland and other partner countries, the AGCE aims to expand geothermal research and training. Its goal is to produce geothermal scientists, engineers and technicians to ensure geothermal expansion in Africa for years to come. Governments of multiple African countries are committed to creating this center in order to achieve their climate change and sustainability goals.

Iceland is also a member of the United Nations Environment Programme (UNEP). The country is commended for its work in Africa. The UNEP Energy Programme Manager Meseret Teklemariam Zemedkun stated, “Iceland has been a steadfast and important partner to UNEP in bringing geothermal expertise to East Africa.” Beyond fostering geothermal energy in Africa, Iceland’s financial contributions help support the UNEP’s other projects and overall mission. Iceland continues to be a world leader in demonstrating the significance of renewable energy. The country accomplishes this goal by addressing Africa’s present and building for its future.

– Radley Tan
Photo: Flickr

Commercial banks often find themselves unable to provide financial services in rural areas. Poor credit histories, limited manpower, customers illiteracy and accommodation problems of the staff limit commercial bank operation. Microfinance is a simplistic tool to remedy this issue. It is the provision of small loans to the impoverished to help those who otherwise do not have access to traditional banking services to engage in or establish an income-generating activity. Microfinance has been a renowned initiative for poverty reduction as well as economic and social development for over 30 years.

Microfinance Models

The concept for microfinance was propounded by Mohammad Yunus, who subsequently founded the Grameen Bank in Bangladesh to provide credit facilities to the poor and boost their entrepreneurial potential. Since then, microfinance has taken a range of forms.

These forms include non-governmental organizations, credit unions, cooperatives, associations, community banking, Self Help Groups, ROSCAs, small businesses and village banking models.

The Dark Side of Microfinance

In terms of poverty reduction, two key questions have emerged: first, to what extent has microfinance contributed to creating a long-lasting and permanent difference to help households escape poverty? Second, to what extent do microfinance programs reach the worst off, “chronic poor” and not just the “transient poor.”

The total number of microcredit borrowers has magnified exponentially from less than 20 million in the 1970s to over 211 million in 2013. There are undeniable success stories regarding the transformative effect of microfinance on individuals and households. But until recently, there has been very little research that shows the impact of microfinance in a way that demonstrates causality.

In their book “Finance Against Poverty” (1996), David Hulme and Paul Mosley were first to criticize microfinance. They suggested that microfinance helps those above the poverty line more than those below the poverty line. In some instances, they found that microcredit makes life for those at the base of the pyramid even worse. Some argue microfinance contributes to creating debt traps for the poor whereby they sink into the vicious cycle of repayment of loans, and due to increasing interest rates, they are never able to escape.

An unprecedented consequence of microfinancing is the increase in organ trafficking, especially in Bangladesh. When borrowers are unable to repay their debt, traffickers pressure them into selling their organs. In most cases, these borrowers are uneducated about the implications of their actions. In other cases, debtors go as far as to take their own lives.

The Silver Lining

However, despite its shortcomings, microfinance has hardly been a failure in the case of poverty reduction. Rather than seeing it as a poverty panacea, microfinancing is more aptly a means of expanding opportunities for the disadvantaged.

Perhaps one of the most significant advantages of microfinancing is empowerment. Empowerment is at the center of human progress. Microfinance is helping the world reach the first Millennium Development Goal: eradicating poverty and hunger. It is also helping reach the MGD 3 to promote gender equality and empower women.

For example, Self Help Groups are a popular microfinance model in India, particularly among rural women. These groups provide a platform to act on a variety of social issues such as health, nutrition, domestic violence, etc. During the pandemic, the SHGs were incredibly useful in distributing masks and sanitizer to meet shortages and running community kitchens.

Financial Diaries of people living on $2 or less per day have shown that microcredit helps many families make critical purchases that they could not otherwise afford during times of scarcity.

No single aspect of development, be it microfinance, health or education, can work towards poverty reduction. The amalgamation of all different facets, when targeted to the poor at the grassroots level, is a powerful tool in the fight against poverty and puts the world on the path to an egalitarian society.

– Riddhi Bhattacharya
Photo: Wikimedia Commons

One can find palm oil in most U.S. packaged products. Indonesia was the top palm oil exporter in 2019 with a record output of 36.18 million tons, making this resource a significant contributor to economic prosperity. However, meeting the high demand for palm oil has taken a toll on the country’s social and natural environment. Here is some information about palm oil production in Indonesia.

The Need for Palm Oil

The market for palm oil quickly became robust following a rise in boycotts of trans fats in packaged food items. Many companies previously utilized trans fats to extend products’ shelf lives, but discoveries of their associated health risks in comparison to other vegetable oils led to a worldwide shift toward safer alternatives like palm oil. Palm oil is cheaper to produce and buy than other oils, costing roughly $2 per 2.2 pounds. Although its low price is certainly beneficial, the heavy demand for palm oil has harmed plantations workers and forest regions.

Deforestation and Reduction of Biodiversity

Indonesia is the largest exporter of palm oil, producing approximately half of the global product. Palm trees are highly efficient, so growers can produce palm oil quickly and in large volumes. Still, the deforestation that is necessary to expanding palm oil plantations is devastating to forest areas and wildlife. Global Forest Watch stated that between 2001 and 2018, Indonesia lost “26 million hectares (Mha) of the forest,” leading to a 25% deforestation rate — the highest in the world. This land clearing releases carbon into the atmosphere, causing wildfires that reduce biodiversity to a mere 15%.

Societal Impacts

To accommodate the growing palm oil industry, many indigenous people had to leave their homes. In addition to losing their shelters, these individuals have lost rights to their land, culture and resources. The Human Rights Watch carefully inspects the devastation that many native families experience.

Local workers within the palm oil industry have experienced a burden from long hours and little pay, sometimes working overtime without proper compensation. For females, the gender divide makes conditions even worse: these workers usually do not receive paid contracts, meaning their labor is abused. Despite a minimum wage requirement set in 2017, women receive 66,000 rupees ($5) a day. Their male counterparts obtain nearly 100,000 rupees ($7.50) a day. Additionally, women often work in maintenance management where they work with harmful pesticides and chemicals, predisposing them to more health problems than men. The accumulation of these negative conditions perpetuates the cycle of poverty for many Indonesian palm oil workers.

Economic Impacts

Palm oil production in Indonesia generates nearly $18 billion annually in foreign exchange, a significant benefit to the country’s economy. In comparison to other vegetable oils, palm oil is the most sustainable, efficient and versatile option. Despite the deforestation that has destroyed much of Indonesia’s forest area, palm oil production remains more environmentally friendly than any of its alternatives. Even with a substantial gender pay divide, the industry lifts locals out of poverty by providing over 4.5 million jobs.

Here to Help

The Asian Agri’s One to One Commitment has helped local palm oil farmers develop smallholder partnerships since 1987, with the ultimate goal of improving land productivity. Independent smallholders often lack access to the newest technology or industry standards. Asian Agri creates partnership opportunities to assist these local farmers keeping their protocols as effective as possible. The One to One Commitment has boosted the efficiency of palm oil farms, improving incomes and living standards for thousands. Given the palm oil industry’s overwhelming success, Asian Agri’s investment in local stakeholders provides hope for the future of palm oil production in Indonesia.

– Allison Lloyd
Photo: Flickr

The Inuit are a group of Aboriginal peoples who have occupied the Arctic lowlands for the past 5,000 years. They have a robust history and culture but suffer from one of the highest levels of poverty in the world. In Northern Canada, Inuit live in four regions that comprise the Inuit Nunangat: Nunavut, the Northwest Territories, northern Quebec and northern Labrador. The Inuit Nunangat, where most of the 65,000 Canadian Inuit live, is a territory that includes the land, water and ice — all integral elements of Inuit culture. This region spans 53 communities and ultimately makes up 35% of Canada’s landmass. Given the significant presence of Inuit throughout the country, some are giving much attention to the poverty that this group has faced. Here are five contributions to Inuit poverty in Northern Canada.

5 Contributions to Inuit Poverty

1. Colonization. Inuit poverty in Northern Canada stems from European colonization. In the 1700s, European whalers and fur traders entered the Arctic region to hunt and barter with the Inuit. While trade brought new technologies into Inuit communities, this era left the land depleted of seals, whales and fish. Later, missionaries and the Canadian government entered Inuit society as well. Following that, Inuit Tapiriit Kanatami wrote that: “many but certainly not all of the traditions, values, skills and knowledge that bound us together as Inuit gave way in response to the demands placed on us from the outside.” This culminated in pressure for Inuit societies to adopt Western culture and begin engaging in the world economy.
2. Economy. The “Inuit Great Depression” occurred due to contentions over the commercial seal trade, a primary source of income for many Inuit communities. The International Fund for Animal Welfare (IFAW) successfully mobilized public opinion against Inuit seal hunting and in 1983 the European Economic Community placed a ban on the importation of fur and seal skins. Despite the written exemption for indigenous Inuit hunters, markets across the Arctic crashed and the Inuit economy suffered immensely. During this ban, the average income of an Inuit hunter fell from $54,000 CAD to $1,000 CAD. An estimated 18 out of 20 Inuit villages lost at least 60% of their income. Today, Inuit regions have some of the highest unemployment rates in Canada along with the highest suicide rates globally. The second ban by the E.U. in 2010 further exacerbated Inuit poverty. The need to work also takes time away from hunting, as well as limits Inuit access to traditional natural resources like food.
3. Food. Due to geographic location, Inuit sustenance relies on hunting. The Inuit have less access to goods readily available throughout the rest of Canada since grocery stores struggle to supply food to remote Arctic regions. Depending on the season, planes cannot deliver fresh produce. Environmental changes diminish access and availability of traditional food, and store-bought alternatives are extremely expensive. A healthy diet for a four-person Inuit family costs an estimated $18,200-$23,400 per year, while the median yearly income is less than $17,000. The increased reliance on processed food leads to poor nutrition and health problems.
4. Health. Health is another major challenge to Inuit people. According to UNICEF, “[Inuit] experience higher infant mortality rates, lower child immunization rates, poorer nutritional status and endemic rates of obesity, diabetes and other chronic diseases.” More than this, they “suffer higher rates of suicide, depression, substance abuse and fetal alcohol spectrum disorder and their representation in the welfare and justice systems is generally higher than in the non-Aboriginal population.” Housing exacerbates these health conditions.
5. Shelter. Inuit communities suffer some of the worst living conditions in Canada. The close living quarters allow communicable diseases like viruses and pneumonia to spread quickly, making Inuit children less likely than non-Aboriginal children to receive medical treatment. In fact, 31% of Inuit live in crowded homes due to housing shortages throughout their communities. UNICEF reports that approximately 28% of Inuit live in homes needing major repairs. Deteriorating housing poses a great risk to Inuit health and safety.

To combat some of the economic burdens that the Inuit bear and to mend relations with indigenous peoples, the Government of Canada initiated an act in 2019 to provide Inuit with economic opportunity and lifelong prosperity. The Indigenous Skills and Employment Training (ISET) Program, in partnership with the Kakivak Association, offers community needs-based skills training and development programs. While Canada needs to do much work to right the wrongs toward Indigenous peoples, it is making progress to help end Inuit poverty in Northern Canada.