Archive for category: Development

Information and stories on development news.

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Developmental Aid Around the Aral Sea Alleviates Poverty in Kazakhstan

developmental aid around the Aral Sea
The Aral Sea was once a large saltwater lake located in Central Asia. With Kazakhstan in the north and Uzbekistan in the south, both countries bordered the body of water. Fishing communities in the countries prospered for years, yet a decisive change in the 1960s led to the demise of these towns. The two countries experienced drastically different outcomes, all due to developmental aid around the Aral Sea.

Causes of the Aral Sea’s Water Loss

In the 1960s, the Soviet Union decided to redirect the water in the Aral Sea for agriculture, predominately for cotton. Previously, the sea was replenished by the water that rivers returned, making it a reliable source of income for neighboring fisheries. Over the past four decades, the sea has retreated about 93 miles, losing a surface area the size of Maryland. With salinity levels continuing to rise to more than seven times the normal amount, a once plentiful resource has run dry.

As the sea dried up, so did jobs. A reported 60,000 jobs disappeared in direct relation to Aral fishery shutdowns. Dust storms that swelled within the barren seabed contained various chemicals from the agriculture in the surrounding areas and caused irrevocable harm to citizens. Diseases related to poor air quality were rampant. Even the food produced in the area contained hazards for consumers, which forced thousands from their homes. Those that chose not to leave, despite the water and air pollution, were left living in poverty.

Intervention in Kazakhstan Improves the Lives and Livelihoods of Residents

In 2005, the World Bank intervened with a plan for developmental aid around the Aral Sea and partnered with the Kazakh government to install a dam. The plan cost $86 million and was designed to improve irrigation along the rivers and restore the sea. The dam primarily prevented water in the northern regions from flowing south. Additional measures to improve irrigation along the Syr Darya River made sure enough water flowed back into the North Aral Sea. Previously, as much as 40 percent of water was lost due to poor irrigation.

In 2006, the Kok-Aral Dam was constructed and saw quick success. As the surface area of the sea expanded, fish stocks were reintroduced. The replenishment of local resources meant that the economy, once built on fishing, could flourish and grow to its previous grandeur. The water and air quality also improved, meaning that residents no longer needed to move away from the area.

In 2006, the ports handled around 2,000 tons of fish and houses in the area were no longer empty; about 17 homes were occupied as opposed to eight. As the local fish diet improved, so did the ability to grow vegetables. The changes to the ecosystem led to more rainfall and fewer sandstorms. Life was reintroduced to the region.

Uzbekistan’s Focus on Cotton Deprives the Fishing Industry

A very different story played out in neighboring Uzbekistan, where government leaders are still insistent that cotton production is their “white gold”. The country ranks 12th in highest value of cotton exported in 2017. The enterprise brings in around $850.4 million and accounts for 1.6 percent of total exported cotton.

However, similar health risks and impoverishment are seen in areas previously home to fisheries. Many people migrated to agricultural regions to make a living farming and picking cotton. Conditions around cotton production in Uzbekistan remain questionable, with allegations of forced labor becoming rampant.

The Effects of Developmental Aid Around the Aral Sea on Poverty

Although both countries experienced high levels of poverty at the height of the Aral Sea’s reduction, the current state of poverty in the two countries is quite different. In 2005, 31.6 percent of the country lived in poverty in Kazakhstan, while in 2016, only 2.6 percent of the population lived in poverty. This reduction is directly related to developmental aid around the Aral Sea.

In Uzbekistan, the decline is much slower. From 2012 to 2016, poverty decreased from 15 percent to 12.3 percent. This progress is promising, yet slow compared to its neighbors. When the World Bank asked the Uzbek government if it wished to participate in developmental aid around the Aral Sea, like that in Kazakhstan, it declined.

The Future of Development in Central Asia

In partnership with World Bank, the Kazakh government provides an example of successful developmental aid around the Aral Sea. Currently, the World Bank is working with the Uzbek government to implement projects around horticulture. As new enterprises are explored, such as oil drilling in the south Aral Sea by Uzbekistan, avenues to combat poverty will vary. For Kazakhstan, working to reinvigorate a previously plentiful resource was the key to poverty alleviation.

This triumph in poverty reduction provides a hopeful message to those wanting to see a drastic drop in poverty through developmental aid.

– Taylor Jennings
Photo: Google

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The Development of South Asia Through Integration

The Development of South Asia Through Integration
South Asia is considered one of the least integrated regions across the globe; yet in recent years, international organizations, such as the World Bank, are implementing strategies to unite the nations economically.

Understanding South Asia

South Asian countries consist of Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka. South Asia is considered one of the fasting growing regions within the world today, and the region is home to two very fast-growing economies.

According to the World Bank, the development of South Asia is projected to increase from 6.9 percent to 7.1 percent in the upcoming year.

Bhutan, alone, is currently the fastest growing economy — the nation reports that it will grow at a staggering annual rate of 11.1 percent. India is also one of the fastest growing economies as well, with a growth rate at about 7.73 percent from 2017-2019.

The World Bank emphasizes the importance of cooperation and trade among South Asia, and they believe that the growth rate is predicted to increase if these nations work together in harmony.

Path to Progress

Regional, economic entwinement is the way in which development of South Asia progresses — the World Bank recognizes such measures and has initiated plans in order to unify this region.

As one of the first steps, the World Bank brought approximately 100 students together at the Fourteenth South Asia Economics Students’ Meet (SAESM). Economic undergraduates discussed their academic and experimental research about regional integration and its advantages.

They also explained how to attain economic prosperity through cooperation and trade, and students developed long-lasting friendships that should unequivocally encourage future relations among South Asian countries.

‘One South Asia’

Not only has the World Bank encouraged millennials, but they also have a twofold program called “One South Asia,” which directly forms connections among South Asian countries. The first objective is technical assistance, which will offer economic opportunities to strengthen trade connections. The second goal is to increase conversation about regional integration and local investments.

They are also trying to work with both the public and private sectors. The development of South Asia begins at the engagement of all levels of the economy.

There has been many obstacles to achieve “One South Asia,” yet the World Bank is determined to merge these nations together so they are successful economically, politically and socially. The development of South Asia as a whole will be difficult, yet it is possible and can occur if the region continues on this trajectory.

The World Bank’s Influence and Steps to Development

The World Bank has many projects within South Asian nations — particularly Afghanistan, Bangladesh, Nepal, Sri Lanka and Pakistan — to improve their economies individually. Most of these initiatives create jobs and opportunities for their citizens.

Regional integration is also crucial to the development of South Asia. The only way to reach prosperity is for countries to form a union — if South Asia mirrored the European Union, the opportunities for growth within each nation are endless.

This is a challenge, yet if international organizations, governments and the citizens of South Asia work tirelessly, they will surely reach their Sustainable Development Goals.

– Diana Hallisey
Photo: Flickr

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The Role of African Multilateral Institutions

African Union
Intergovernmental cooperation provides a multi-faceted approach for tackling regional and global issues. African multilateral institutions allow governments to work together on developing, unifying and improving livelihoods throughout the continent.

There are a variety of roles that these institutions can play: from increasing trade, improving infrastructure, peacekeeping, promoting good governance, developing technology, providing health and education. Intergovernmental cooperation can also serve a cultural role.

The challenges that Africa is facing at the moment are unique to the culture and political history of the continent.  African multilateral institutions can provide more endogenous solutions – ones that arise from within Africa by Africans.

The African Union (AU) is perhaps the biggest and most ambitious multilateral institutions in Africa. Founded in 2002 out of the previous Organization for African Unity, the AU aims to politically and socio-economically integrate Africa. The AU also promotes peace and stability and norms of good governance. Within the AU, The pan-African Parliament functions as a forum that allows delegates from each country to present key issues and bring back advice for heads of state.

There are several subdivisions and committees the AU oversees that focus on reducing poverty and sustainable development. For example, the New Economic Partnerships for African Development (NEPAD) uses funding from Western nations to improve economic and government institutions.

The African Union is also instrumental in promoting democratic processes. They utilize a unique volunteer Peer Review Mechanism, in which states that choose to participate agree to have their political processes evaluated by experts. The AU also send observers to cover all elections in African countries.

With the creation of the Peace and Security Council in 2004, the AU plays an increasingly important role in African security. Contrary to its predecessor, the African Union is able to intervene during conflicts. This can occur through authorizing peacekeeping missions or in cases of genocide and crimes against humanity through deploying military forces.

The AU intervention after the civil war in Sudan broke out was one the most rapid and influential responses from the international community and helped create peace through a self-determination referendum after South Sudan seceded. In Kenya and Côte d’Ivoire, the AU successfully resolved post-election violence. In Somalia, the sizeable AU peacekeeping mission used a comprehensive strategy to decrease the effects of the terrorist group Al-Shabaab and stabilize the country.

As the largest economic organization on the continent, the African Economic Community is another influential African multilateral institution. It consists of all African countries that have formed eight smaller blocs based on geographical proximity: Economic Community of West African States, East African Community, Economic Community of Central African States, Southern African Development Community, Intergovernmental Authority on Development, Community of Sahel-Saharan States, Common Market for Eastern and Southern Africa, and Arab Maghreb Union.

These regional organizations help integrate Africa’s economy and facilitate trade. The East African Community, for example, is the most integrated of these trade blocs, with free trade and plans for a common currency. The Economic Community of West African States does not only serve as a trade bloc but also engages in peacekeeping activities and has a formal judicial arm that aims to prevent human rights violations.

Together, these African multilateral institutions tackle the difficult challenges in development that the continent faces, from various angles and with multiple approaches.

– Liesl Hostetter
Photo: Flickr

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Addressing the Importance of The BUILD Act for the Future

BUILD ActThe Better Utilization of Investments Leading to Development Act (BUILD) was created to allocate private-sector dollars to assist developing countries. The BUILD Act would create The United States International Development Finance Corporation (USIDFC). The budget would be set at $60 million, which is nearly double Overseas Private Investment Corporation’s (OPIC) current funds. There will be a focus on low income and lower-middle income countries and assistance to turn them into market economies.

The BUILD Act

The importance of the BUILD Act is that it allows the USIDFC the opportunity to: 1) make loans, 2) obtain equity or financial interest in entities, 3) provide reassurance to private sector entities and qualifying countries, 4) provide technical assistance, 5) conduct special projects, 6) crate enterprise funds, 7) issue obligations and 8) charge service fees.

The BUILD Act was passed by the House on 17 July 2018. The vote was spearheaded by Co-Chairs of the Congressional Caucus for Effective Foreign Assistance, Rep. Adam Smith and Rep. Ted Yoho. The importance of The BUILD Act is recognized by both parties because it recommits the United States to be supportive of developing countries.

According to Rep. Adam Smith, the United States must “take an all in approach to our foreign assistance.” Programs like The BUILD Act are essential because they promote “health, peace and stability that are vital to our national security.” Rep. Ted Yoho believes The BUILD Act is a huge step towards the United States becoming more effective with foreign aid. The end goal of the BUILD Act is to take countries that are struggling with extreme poverty from “aid to trade.”

The importance of the BUILD Act for developing countries can be seen in 5 major areas:

  1. Building infrastructure
  2. Increasing obtainability of electricity
  3. Starting businesses
  4. Job creation
  5. Reducing the need for foreign aid from The United States

Helping Economies Around the World

Developing countries have difficulty attracting the investors that are needed to begin creating economic growth. In order to assist these countries and gain the advantages of helping, The U.S should be encouraging the private sector to invest. That is where The BUILD Act comes into play. This act will allow developing countries the opportunity to get out of poverty and accomplish becoming self-sufficient.  

The act will bring billions of dollars in private-sector investments to fight extreme poverty along with making it easier for American business to work in developing countries. If an American investor would like to have a business in a developing country, but the banks think that could be too risky of an investment, The USIDFC would be available to provide assistance; subsequently, helping Americans while creating more jobs and helping those dealing with extreme poverty.

The BUILD Act is an important piece of legislation that both parties feel will be a benefit to both our economy and that of developing countries in need. Countries facing extreme poverty will now have the capability to become self-sufficient.

– Olivia Hodges
Photo: U.S. Dept. of Defense

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Four Important Facts to Know About Infrastructure in the Philippines

Infrastructure in the Philippines
Amidst the 7,107 western Pacific islands known as the Philippines, poverty is uniquely endemic. A country of scattered landmass, the Philippines is ranked the third most disaster-prone country in the world, as its close proximity to the equator encourages destructive weather such as earthquakes and storms. Natural disasters disproportionately and recurrently hit the poorest regions of the country, coursing them into higher levels of poverty.

This, along with uncontrolled population growth, exacerbates the reality of poverty within this collection of islands. Fortunately, there are significant plans in the works that focus on kicking such insufficiency to the curb, solutions that include the advancement of infrastructure in the Philippines.

Historically, insufficient infrastructure development has stunted both economic growth and poverty reduction, but there is an active movement toward improvement. Within the past couple of years, proposals have been met with action to pave the way for a change. The following are four important facts regarding infrastructure in the Philippines.

Four Facts About Infrastructure in the Philippines

  1. $7.6 billion has recently been approved to establish new infrastructure in the Philippines. President Rodrigo Duterte has plans for robust projects such as bridges, roads and the Metro Manila Subway. Under the national “Build, Build, Build” initiative, the country is looking to spend $180 billion to renovate and build airports, railways, roads and ports over a six-year period.
  2. Additional financing for the Rural Development Project for the Philippines was approved January 11, 2018. Costing over $2 million, this project aims to promote job creation, especially within rural development. It seeks to boost rural incomes and enrich both farm and fishery productivity in specified regions, as well as to establish essential pieces of infrastructure, like a network of roads, that allow farmers to sell products at market and connect to the urban areas.
  3. The Mindanao Trust Fund-Reconstruction and Development Project Phase II (MTF-RDP2) was approved April 4, 2018. Costing over $3 million, this project focuses on post-conflict reconstruction, improving labor market policy and programs, promoting social inclusion for ethnic minorities and appeasing forced displacement. The objective of the MTF Facility is to advance development in conflict-affected areas in Mindanao by assisting in social and economic recovery within these communities.The MTF-RDP2’s objective focuses on improved access for conflict-affected communities to basic socioeconomic structure and alternative learning systems. According to Xubei Luo, Senior Economist at the World Bank’s Poverty and Equity Global Practice, “Making a difference in Mindanao makes a big difference to the Philippines. Increasing public investment in Mindanao to boost development there would expand opportunities for conflict-affected communities, broaden access to services and create more and better jobs.”
  4. From 2006 to 2015, poverty in the Philippines took a dive. A recent report by the World Bank states that economic growth is responsible for poverty levels dropping by five percent. From 26.6 percent in 2006 to 21.6 percent in 2015, such a decrease in numbers is also a result of the expansion of job opportunities outside the agriculture sector.The Filipino government has a goal to reduce poverty from 13 to 15 percent by 2022. According to the World Bank, plans include the Philippine Development Plan 2017–2022 and AmBisyon 2040, a long-term vision to reduce poverty and recover the lives and wellbeing of the most marginalized regions and communities of the nation.The World Bank’s Poverty Assessment report recommends the following policy directions to achieve the proposed targets: “Create more and better jobs; improve productivity in all sectors, especially agriculture; equip Filipinos with skills needed for the 21st century economy; invest in health and nutrition; focus poverty reduction efforts on Mindanao; and manage disaster risks and protect the vulnerable.”

The sizeable collection of Filipino islands has an undying potential to continue reducing poverty through its infrastructure advancement efforts. Although an extremely complex process, both the booming Filipino economy and government project initiatives are projected to gradually alleviate cyclical Filipino poverty. The future of infrastructure in the Philippines is looking bright.

– Mary Grace Miller
Photo: Flickr

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Benevolent Finance: How Development Impact Bonds Work

Development Impact Bonds
Development impact bonds are an emerging financial model that is outcome-based — donors and governments only pay if the proposed interventions achieve set goals for improving the lives of people in poor countries. Original funding for development programs comes from the private sector.

In such a model, impact bond initiatives looking for profit mobilize private capital to invest in service activities, and an outcome founder — donors or governments — pays the original investor if the service activities produce results that meet agreed-upon targets.

The First Development Impact Bonds in Education

UBS Optimus Foundation launched The Educate Girls Development Impact Bond (DIB) in June 2015, the world’s first development impact bond in education. UBS Optimus Foundation serves as the investor who recruited Educate Girls, a non-governmental organization (NGO) based in a remote rural district of Rajasthan, as the service provider. UBS Optimus Foundation directly funds Educate Girls’ programs, which works to help enroll girls into primary education and improve the learning of boys and girls in English, Hindi and mathematics.

ID Insights, a non-profit evaluation firm, serves as the third party that confirms and evaluates service progress. The outcome funder is the Children’s Investment Fund Foundation, who pays UBS Optimus Foundation a fixed amount for each unit of improvement in the quality and enrollment of girls’ education.

Satisfactory Results

The DIB functions on a $270,000 budget, and Educate Girls’ services reach 166 schools in 140 villages in Bhilwara. The goal for the program is to help as many as 15,000 children, 9,000 of whom are girls.

By the end of the second year of the three-year program, Educate Girls has achieved 87.7 percent of the proposed total enrollment increase, and 50.3 percent of the proposed total learning progress improvement.

A Focus on Outcome

Precisely because of the program’s outcome-oriented nature, service providers on the ground receive more feedback to help the organization work more efficiently. Safeena Husain from Educate Girls told Brookings that DIB and traditional grant programs are very different: while traditional grant programs only send results to donors, DIB has designed a mechanism over mobile dashboards that allows performance data to circle back to the front line. Thus, more effective strategies could be adopted as early as possible.

As this example shows, development impact bonds best serve those programs that depend on productive human behavior for the delivery of results. In contrast to immunization programs where intended results are almost guaranteed given the availability of vaccines, education programs that require attentive human effort may benefit from the development impact bond model instead.

USAID’s Initiative in India

U.S. Agency for International Development (USAID) has also tapped into the benefits offered by this innovative financial model. USAID administrator Mark Green announced the Utkrisht Bond in 2017, which is a development impact bond for health based in rural India. The investor is again UBS Optimus Foundation, with USAID and Merck for Mothers as the outcome funders.

“What’s most exciting to me is that, if this initiative is successful, which we expect it will be, the Government of Rajasthan will scale the approach throughout the State, which will leave a lasting and sustainable legacy for the people of India,” Green wrote.

These kind of positive, impactful and long-lasting benefits demonstrate the life-changing and, indeed, benevolent outcomes that development impact bonds can bring.

– Feng Ye
Photo: Flickr

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Main Reasons Why Development in Saudi Arabia Matters

development in Saudi Arabia
Saudi Arabia is steadily growing to be a formidable player in the 21st century on the world stage, especially with its massive oil industry, staunch relationship with the United States, and the crucial role it plays in middle eastern geopolitics and international affairs. Yet, at the same time, development in Saudi Arabia has been hindered over the decades due to its conservatism and hidebound ideals.

Saudi Arabia On the Global Stage

Although statistics and figures on the country’s poverty rate remain elusive, it is predicted that a quarter of the population may live under the threat of poverty, which is considered to be about $17 a day, or $530 a month. Income disparities also continue to be on the rise and the unemployment rate currently stands at about 12.7 percent.

Moreover, even though government-run welfare programs and spending systems like Zakat have helped aid development in Saudi Arabia in the past, the country still prioritizes the strength of its oil industry and its own self-image above all else.

Fortunately, Saudi Arabia now experiences a new wave of revolutionary change via the new crown-prince Salman’s reign. The prince’s new policies usher in a new period gradually shifting away from the traditional pivotal ideologies of Wahhabism, pan Arabism and conservatism that Saudi Arabia once stood for. The Saudi economy has great potential and capacity due to the country’s relatively young, and working-age population.

Vision 2030

In its new era of social and economic changes, the Kingdom hopes to achieve its Vision 2030 reform plan and focus on promoting greater social and political stability, sustainability and transparency. Vision 2030 also concentrates on important factors like improving standard of living and education reform so as to make future workers more skilled and competitive for the labor market.

Moreover, Prince Salman’s policies will hopefully lead to greater social progress and development in Saudi Arabia, owing to its focus on anti-corruption measures, gender equality and the empowerment of women.

Anti-Corruption and Empowerment Efforts

There has been a widespread crackdown on problems like the income gap and corruption as the country’s new anti-graft campaign to ‘clean up the economy’ goes into full swing. The anti-corruption campaigns have already yielded more than an estimated $106 billion in financial settlements from many corporates, executives, businesses, and high profile figures from both the government and the royal family.

Furthermore, with the country’s focus on socially and economically empowering women, notable social transformations will take place in Saudi society as women are given more places in the workforce and granted permits and licenses for investment and commercial activities. Consequently, the National Transformation Program 2020 also aims to boost employment opportunities among women and the youth population.

Saudi Arabia’s Continued Progress

The ban on female drivers is steadily being lifted and women will also be given more places in the municipalities in the future. In 2017, Saudi Arabia was given a place at the U.N. Women’s Rights Commission for a four- year term.

Due to recently falling oil prices, it is vital for the country to reduce its over-reliance and dependence on the oil industry. Development in Saudi Arabia can be stimulated by future growth in the country’s non-oil sectors and further economic and industrial diversification.

Fortunately, the country’s competitiveness is improving as is its growing independence and decline in the level of imports. The government also hopes to further open up the economy and interact with global markets.

Although social and economic changes in Saudi society will take time to materialize, the liberalization of the country is imperative for building a foundation for long-term sustainable growth in a fast-paced and dynamically changing world.

– Shivani Ekkanath

Photo: Flickr

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Economic Development In Iraq Contributes To Fight Poverty

Economic Development In Iraq Contributes To Fight Poverty
According to the World Bank, after the complete eradication of ISIS in all of its territory, economic development in Iraq will most likely be deployed and bear fruitful results.

ISIS and Iraq

More specifically, the increase of oil prices and the promising rise of investments towards reconstruction are presumably fueled by a set of government actions. These decisions are set to facilitate and accelerate the process of economic and social recovery in the wake of ISIS which, as of December 2017, is no longer a major threat for Iraq.

Since 2014, the ISIS war and prolonged decrease of oil prices heavily contributed to the contraction of a non-oil economy by 21.6 percent. Therefore, a safer economic and social environment will bring nothing but economic and social relief.

Indeed, the most treasured tool for economic development in Iraq is certainly oil extraction, which accounts for 55 percent of the GDP. The remaining part of this number is divided between the services sector (33 percent), manufacturing, construction, water and electricity production (8 percent) and agriculture (4 percent).

Iraq’s Economic Growth

Oil prices and restored security, then, have been the main factors for Iraq’s solid economic growth in 2016, which amounted to 10 percent. However, fiscal responsibility and curbing corruption should go hand-in-hand with such economic development in Iraq.

To maintain a steady trend in economic growth and the road of improvement, the Iraqi government should take a serious look at how tax revenue as a percentage of GDP is barely detectable because of quite high levels of evasion and poor enforcement. Moreover, in terms of public spending, the government has been spending an amount close to to 42.7 percent of the (GDP) over the past three years, and budget deficits have averaged 8.6 percent of GDP. Public debt, as a consequence, is equivalent to 63.7 percent of GDP.

Poverty Eradication

Actions, however, have been taken towards the greater goal of poverty eradication in Iraq. In terms of analysis and planning, the government has, in fact, determined an official poverty line based on the 2006/07 IHSES (Household socio-economic survey), which also formed the basis for Iraq’s National Strategy for Poverty Reduction 2009.

Assessment reports measuring causes of poverty paired with high frequency, advanced impute expenditure surveys are top methods used to estimate poverty.

Road to Improvement

The Iraqian economy is largely state-run and oil extraction represents some 90 percent of government revenues. Meanwhile, 3.9 percent of people in Iraq are living in extreme poverty (2012). In fact, 18.9 percent live below the national poverty line (2012), with greater rural poverty than urban poverty; 11.6 percent of people in Iraq are multidimensionally poor (2011).

In recent years, economic improvement has been proven effective due to major social internal accomplishments — liberating ISIS territory is certainly on top of the list. Government and state presence can certainly encourage investments and economic development in Iraq, as they have done sporadically in previous occasions. However, it would be quite beneficial towards goals of poverty reduction if a larger portion of the economy could be left to the private sector.

– Luca Di Fabio
Photo: Flickr

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The Life-Changing Impact of Solar-Powered Appliances

solar-powered appliances
Electricity is difficult to come by in sub-Saharan Africa, India and other places in the world. In 2016, an estimated 588 million people in sub-Saharan Africa and 239 million people in India were without electricity. Slowly, more people are gaining access to electricity, specifically through solar-powered appliances and lighting.

Current Issues with Electricity

A lot of the rural cities or areas do not have electricity because they are not nearby to an electricity grid. People in Tanzania, like Lusela Murandika, power TV sets with diesel generators and other parts of their homes with charcoal, wood and other biomass.

Using resources like coal, charcoal, dung or wood as a source of electricity pollutes the breathable air that is needed to survive. According to the World Health Organization, 3.8 million people a year die from illnesses that are tied to air pollution.

Kerosene used in lamps is also a dangerous product to use. It produces soot and toxic smoke that “damages lungs and causes other serious health problems,” according to National Geographic. The use of kerosene lamps, especially ones that are homemade, are dangerous because thousands of children and adults die or are burned from them.

How Solar-Powered Appliances Are Changing Things

Technological advancements have made it easy for solar-powered appliances to become more readily available to purchase. Something as simple as a solar bottle light bulb runs around $2-3.

The solar bottle light bulb is “made out of a plastic bottle of purified water and bleach, [that] is sealed into the roof,” according to National Geographic. The water allows for light to be spread out in the room and the chlorine keeps mold from growing. The solar bottle light bulb not only works with the sunlight but it also works when the moonlight is strong as well. It allows for the people in the home to be able to do more within the household, like study, read or work inside.

Connecting people that live in rural areas to an electrical grid sometimes is not possible or it becomes too expensive to be able to afford. Electricity then becomes a luxury that people cannot afford. Sometimes, people wait years for a grid to be built near them, but having solar-powered appliances allows for them to have access to that technology much sooner.

Organizations Assisting the Distribution of Solar Power

In 2016, four U.S. foundations announced an initiative “to support efforts to bring reliable ‘off-grid’ or ‘mini-grid’ power—fueled by solar energy—to people in India who now are without it,” according to Think Progress. The foundations include Hewlett, the David and Lucille Packard Foundation, the Jeremy & Hannelore Grantham Environmental Trust and the John D. and Catherine T. MacArthur Foundation. All four foundations have initiated a $30,000,000 initiative to fund the program and the Indian government is set to match this.

Furthermore, a company by the name of Easy Solar is helping provide electricity to the residents of Sierra Leone. This company is lead by Nthabiseng Mosia, Alexandre Toure and Eric Silverman. Easy Solar began in 2015 as a response to energy accessibility in Sierra Leone. In an interview from Business Report with Nthabiseng Mosia, she stated, “It’s often widely publicized that two-thirds of sub-Saharan Africans lack access to electricity. But in Sierra Leone, 90 percent of people (and 99 percent in rural areas) don’t have any electricity.”

With Easy Solar, appliances are set up so that consumers are on a rent-to-own basis, providing weekly payments. Some of the devices that the business offers are lights and mobile chargers as well as solar lanterns that have the capability of charging phones and offer more than 24 hours of light. The company’s appliances are not just limited to households but are also for businesses as well.

There are many organizations on the ground that are helping individuals obtain the necessary materials to be able to survive that will not cost them their lives. Solar-powered appliances are one solution that is helping eradicate poverty.

– Valeria Flores
Photo: Flickr

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How Infrastructure Investments Alleviate Poverty

Infrastructure Investments Alleviate PovertyOn Friday, Sept. 25, 2015 the U.N. General Assembly embarked on a milestone in development history. Its new Sustainable Development Goals (SDGs) set an ambitious agenda to work toward ending extreme poverty and boosting prosperity by 2030. The SDGs’ platform consists of a collection of 17 global goals each aimed at addressing economic and social issues in developing countries. One such goal was infrastructure, as it has been proven in many different countries that infrastructure investments alleviate poverty.

How Infrastructure Investments Alleviate Poverty

The Industry, Innovation and Infrastructure goal aims to “build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation.” Infrastructure is the backbone of any country as it generates jobs, boost economic growth and improves the quality of life for the poor.

Take, for example, a hospital in the Democratic Republic of Congo that needs electricity to ensure the safe and healthy delivery of a newborn. A young, rural Cambodian girl needs to have a safe road to walk to school and Bangladesh needs clean water for the essential livelihoods of its citizens. These are just a few of the myriad of ways that infrastructure investments alleviate poverty.

The Costs of Infrastructure Resistance

However, when governments push back on certain infrastructure plans, it comes at an enormous social and economic cost. Roughly 663 million people lack access to clean water, 2.4 billion people do not have adequate sanitation, one-third of the world’s population is not served by an all-weather road and over 1.1 billion people, or almost 16 percent of the world’s population, still have no access to electricity.

The Industry, Innovation and Infrastructure goal has seen a tremendous impact in diminishing these issues and others in emerging countries. Mobile services have spread rapidly and have allowed people to join the global information age. In 2016, 85 percent of people in the least developed countries were covered by a cellular signal. Transportation services also drive economic development and generate wealth and employment. In 2015, the global economic impact of air transport was an estimated $2.7 trillion, or about 3.5 percent of the global gross domestic product.

Infrastructure to Overcome Debt Cycles

One recessive point in global infrastructure came in the wake of the 2008 Great Recession. The West began exporting debt to emerging markets while also purchasing debt from emerging markets. Western fund managers sold forms of credit to developing markets and the total debt rose to $49 trillion in 2014.

Unfortunately, many fail to realize that selling endless cycles of debt will make it incredibly difficult for emerging countries to service their own dollar-dominated debt at home. They will be unable to pay back these loans and growth ultimately stagnates. Fortunately, multilateral development banks are uniquely placed to assist countries in closing these long-term financing gaps. They can help identify failing market areas and create incentives in for the private sector.

Infrastructure investments alleviate poverty in developing countries through the application of projects such as bridges, roads, communication, sewage and electricity. These projects enable both public and private investors to gain on capital appreciation. While servicing the vital infrastructure needs of billions of people, these countries will, along with their booming populations, generate significant prospects for long-term growth and profit for generations to come.

– Aaron Stein
Photo: Flickr