Causes of Poverty in TanzaniaTanzania is one of the poorest countries in the world, however, according to the World Bank, poverty from 2007 to 2018 was reduced by 8% overall. There are multiple reasons why the largest east African country is in such despair such as food scarcity, poor access to education and proper healthcare. This article will discuss five facts about the causes of poverty in Tanzania.

Causes of Poverty in Tanzania

  1. The population rate is continuously increasing faster than the poverty reduction rate in Tanzania. This is causing millions of people to live in poverty and survive off of $1.90 a day or less. According to the World Bank’s Poverty and Equity Brief, from 2011 to 2018, there was only a 1.8% decline in poverty. To combat this issue, according to the brief there should be more opportunities available for those living in rural areas. This is because rural areas are where the poverty rate is the highest.

  2. A lack of a proper education lowers the chances for sustainable employment. A primary issue related to education in Tanzania is the decline in enrollment of children in primary school. According to a report for out of school children in Tanzania by the United Nations Children Fund (UNICEF), out of the 1.3 million children aged 7 years old in Tanzania, 39.5% do not attend primary nor secondary school. However, as children get older, the more likely they are to attend school.

  3. Severe and life-threatening diseases such as HIV/AIDS, tuberculosis and malaria impact millions of the Tanzanian population. Many families have to pay out of pocket to receive continuous treatment. Recurring payments pressure already low-income households, adding to one of the causes of poverty in Tanzania. To mitigate the diseases affecting millions living predominately in rural areas, the United States Agency for International Development (USAID) has provided treatment to decrease the severe heath conditions’ growth and spread.

  4. Out of a population of 57.3 million people in Tanzania, access to clean water isn’t available for four million of them. Additionally, 30 million people don’t have access to proper hygiene. This causes women and young females primarily to carry massive amounts of water for a great distance in order to provide it for their families.

  5. The labor force is continuously declining in Tanzania. This can be partially attributed to a lack of government support in initiating sufficient employment opportunities, especially in rural areas. Due to poverty being the highest in rural areas because of poor living environment circumstances, many tend to move into urban areas. Unfortunately, unemployment persists due to people lacking skills for the jobs in their new urban environment. Access to proper education and an increase in attendance in primary and secondary schools will help expand opportunities and skills for more promising and long-lasting employment.

Progress Eradicating Poverty

The key to eradicating poverty in Tanzania is education. However, for more children to become educated, there needs to be an increase in access to education and school attendance. As of 2020, Tanzania’s literacy rate is 70.6%. However, the literacy rate has fluctuated over the last decade, not ensuring continuous growth.

Nevertheless, one organization, “Room to Read” has taken the necessary steps to ensure 14.3 million children are literate. The organization helps young children to be educated, literate and aware of personal health and proper forms of family planning. Their work primarily targets young girls. Room to Read distributes its resources not only to Tanzania but also to over 12 other countries around the world. Suppose Tanzania’s government recognizes the importance of education, a better healthcare system, and an increase in employment opportunities. In that case, the causes of poverty in Tanzania will end sooner than expected. This in turn could help set an example for other impoverished countries.

Montana Moore
Photo: Flickr

Colombia's National Development PlanWhile Colombia has magnificent landscapes and rich cultural history, the country is also rooted in deep political and economic inequality. In 2018, Colombia’s poverty rate stood at 27.8%; this measure defines poverty as those living on less than $5.50 a day. Unfortunately, Colombian households led by women are more likely to be impoverished. Thus, Colombia finds itself in need of reform. Hopefully, poverty will decrease with the implementation of Colombia’s National Development plan.

A Look Into Colombia’s Recent History

Colombia’s poverty rates and development plan cannot be explained without the inclusion of the country’s last five decades of civil unrest. Colombia’s civil war involves the Revolutionary Armed Forces of Colombia (FARQ), the National Liberation Army (ELN) and the Colombian government. The conflict largely revolves around the call for economic reform. The FARQ and the ELN were founded in the 1960s to “oppose the privatization of natural resources and claim to represent the rural poor against Colombia’s wealthy.”

Although the FARQ and the ELN cite good intentions, Colombia’s civil war “has left as many as 220,000 dead, 25,000 disappeared, and 5.7 million displaced over the last half-century.” The U.S. State Department calls these groups terrorist organizations. Unfortunately, the consequences of this civil war, like all other civil wars, had devastating effects on the countries’ social and political spheres. In 2016, the Colombian Government and the leaders of the FARQ signed a peace agreement, hoping to bring unity to the country.

The National Development Plan

However, three years later, the promises of reinsertion, protection programs and rural remain unfulfilled, and the violence continues. Thankfully, this could change with Colombia’s National Development Plan (PND). This proposal “combines the government’s financial resources with grassroots participation which the government calls ‘co-creating together,’ a form of engagement that will play a key role in building sustainable peace.”

Launched by President Ivan Duque in 2018, Colombia’s National Development Plan has a budget of $325 billion. The plan hopes to address societal, social, economic and political issues within the country. But, its most ambitious goals rest on “education, employment, entrepreneurship and environmental sustainability.”

Eradicating Poverty

One major goal of the PND is to bridge the gap between the economic classes, eradicating extreme poverty. Today, 1.9 million Colombians are in extreme poverty; the government hopes to implement the Sisben IV program, which “will see State resources delivered to the most vulnerable members of society through subsidies.”

The PND aims to alleviate poverty by stimulating the economy in a multitude of ways; state subsidies are just one example. For instance, Colombia plans to develop creative industries, “such as visual arts, software development and cultural industries.” The national administration also plans to reduce unemployment by more than 1% through the creation of 1.6 million jobs. Additionally, “The plan is also targeting the development of international trade and the promotion of foreign investment in Colombia as a means of increasing the capacity of the economy.”

Education and the Environment

Increasing employment and subsidies will certainly help the economy directly. But, the PND also hopes to improve the economy in the long-run by developing education systems and improving the environment. For example, the PND hopes to increase participation in the public education system. Administrators aim to double “the number of students who are attending a single session school day from 900,000 to 1.8 million.” In terms of the environment, President Duque’s plan aims to invest $3 billion in sustainable development and to plant “180 million trees in order to stimulate a rejuvenation of the environment.”

For five decades Colombia has dealt with internal strife, leaving the country torn in the political, social and economic arenas. Colombia’s most vulnerable population, the poor, has seen little improvement in recent years. Colombia’s civil unrest and high poverty rates left little hope for the future. However, the 2018 National Development plan sparks the potential for change. The plan proposes both direct and long-term solutions for poverty through investments in education, employment, the environment and the economy. Hopefully, Colombia’s National Development plan will benefit its impoverished communities.

Ana Paola Asturias
Photo: Flickr

GR for GRowth initiative in GreeceUnemployment in Greece has remained a concern among Greeks since the financial crisis that devastated the economy. During the financial crisis, the Greek economy experienced a 25% decline. While the economy has attempted to recover, the economy continues to experience the impact of the financial crisis, and now the COVID-19 pandemic, which is expected to reduce the economy by another 8.2%. In July 2020, the unemployment rate in Greece reached 16.8%. While many Greeks fight to withstand the struggling economy, Microsoft is creating solutions through its GR for GRowth initiative in Greece. The Greek government anticipates that this initiative will rebalance the economy during the pandemic, shifting its heavy reliance from tourism to further developments in energy, tech and defense sectors.

GR for GRowth Initiative and the Economy

In October 2020, Microsoft announced an initiative in Greece that will create opportunities in technology. Microsoft’s ongoing investment is expected to reach approximately $1.17 billion. This will be the largest investment Microsoft has made over 28 years when it first began operations in Greece. The GR for GRowth initiative in Greece will build data centers in the country and develop resources in the economy that will promote growth opportunities that support the people of Greece, government and businesses. The leverage Greece will acquire through this initiative will attract other large corporations that will promote future investments in the Greek economy.

Currently, Microsoft operates data centers in 26 countries, including seven in the European Union. With this initiative, Microsoft will build new data centers that will create a Microsoft Cloud within the country that will provide Greece with a competitive edge as one of the world’s largest cloud infrastructures with access to effective and efficient cloud services. It is anticipated that by 2025, Microsoft will run all data centers on renewable energy sources.

Potential Impact of GR for GRowth

The GR for GRowth initiative in Greece will enhance cloud computing for local companies, startups and institutions. The services delivered through Microsoft Cloud will allow for more efficient networking, computing, intelligent business applications, cybersecurity, data residency and compliance standards. Microsoft has already implemented processes to increase user satisfaction and has collaborated with businesses in Greece for the development of cloud services. Alpha Bank, Eurobank, National Bank of Greece, OTE Group, Piraeus Bank and Public Power Corporation are anticipating the expansion of cloud services in Greece.

While the data center is Microsoft’s largest investment in Greece in 28 years, Microsoft has been paramount in building partnerships with over 3,000 businesses and customers throughout the years. The GR for GRowth initiative will stimulate innovation and growth within the Greek economy. Microsoft President, Brad Smith, believes this investment will positively influence the optimism about the future of Greece, government decisionmaking and economic recovery.

GR for GRowth and the Workforce

While unemployment has plagued the Greek economy, through this initiative, Microsoft will offer training opportunities that will equip more than 100,0000 people with skills in digital technologies by 2025. Over the next five years, Microsoft plans to invest in enhancing digital competencies across the public sector, among business and IT professionals, educators and students. The program will consist of online and in-person courses and workshops. Microsoft’s program objectives will focus on upskilling customers and partners, collaborating with public sector government entities and the expansion of the ReGeneration program that provides services to youth, unemployed and underserved communities.

According to the prime minister of Greece, Kyriakos Mitsotakis, the GR for GRowth initiative in Greece gives hope to the people of Greece for rebuilding its workforce. While the economy in Greece continues to struggle, this initiative hopes to solve economic battles and create a sustainable and prosperous economy.

– Brandi Hale
Photo: Flickr

Indigenous People of Taiwan
Taiwan is an island nation off the coast of China that houses 560,000 indigenous peoples — around 2.7% of the entire population. In the 1940s, the Chinese Civil War forced the Republic of China (ROC) to relocate its base to Taiwan, causing 1.4 million people to migrate from the mainland. Prior to this incident, in 1895, Japan defeated the Qing empire for Taiwan in the First Sino-Japanese War. War has ravaged native families and brought thousands of colonists to the country. This decreased the number of aboriginal people and created a divide between the settlers and the indigenous people of Taiwan.

The Reasons Behind Poverty

Due to consistent colonization since the 1600s, the native people of Taiwan (originally Formosa) have faced persistent oppression. Under Dutch rule from 1624 to 1662, the indigenous people of Taiwan had to convert to Christianity. Colonists also recruited them for military services and placed them into strenuous jobs. Japanese soldiers in the early 1900s raped women, illegally took land and enslaved indigenous men. In 1914, the Japanese killed over 10,000 aboriginal inhabitants of the Taroko area, resulting in the major uprising the Wushe Rebellion of 1930.

Oppression and discrimination have quelled the process of native people integrating into modern society. Most of the indigenous people of Taiwan remain below the poverty line. Household incomes of aboriginal families are 40% lower than the national average. A study by an Academia Sinica sociologist surveyed Han people of Taiwan: only 40% of families would let their children marry an aboriginal person while 80% allowed their children to marry another Han person. This is shocking evidence of the prominence of societal discrimination. The Democratic Progressive Party leaders have been heard calling indigenous peoples racial slurs to suppress and insult aboriginal people. Many businesses still refuse to employ aborigines. The problem worsened when an influx of workers from southeast Asian countries came in and competed for traditionally aboriginal jobs.

Natural disasters that often rampage the island consistently annihilate sources of income for indigenous families. Typhoon Morakot, a fatal category 2 typhoon that hit Taiwan in August of 2009, killed 673 people, mostly from aboriginal villages. Landslides and heavy winds destroyed villages and small economies. An earthquake on September 21, 1999 killed over 2,400 people and sent 100,000 people into homelessness.

The Effects of Being in Poverty

Poverty in indigenous communities has hurt their access to education, insurance and healthcare and is exacerbating the inequality gap. In 2013, 10% of aboriginal students dropped out of college. Of those, 12% could not afford to continue their education. Although 90% of aboriginal college students receive a higher-level education at private universities, they tend to be more expensive causing many students to have financial burdens. Despite the 12-year compulsory education system, aboriginal students in rural areas receive a substandard education. Financial struggles prevent 3% of students from enrolling in school. Aboriginal parents often move to the city for work while their children provide for themselves. Sometimes, the oldest sibling drops out to take care of their younger siblings.

According to a survey that professors at the National Taiwan University conducted, 45% of indigenous participants believe that they are least likely to be hired and promoted compared to Han people. The study also found that the indigenous people of Taiwan lack access to social welfare services. This leads to the widening gap of inequality among the rich and poor, as well as between the Han and indigenous people. In 1985, the income gap between the indigenous people and the national average was $3,702 (USD), while in 2006 it increased to $20,006 (USD). Gradual increases in inequality build higher obstacles for indigenous people to conquer.

Combatting Poverty

The Council of Indigenous Peoples (CIP) is a group of ethnically indigenous government individuals, working to improve the life of indigenous people of Taiwan. Recently, CIP initiated the Four-Year Plan to develop a proper social welfare system to protect aboriginal individuals. The government hopes to increase employment by providing internship opportunities to the indigenous youth and creating websites like “Indigenous Job Agency.” The CIP also guides aboriginal businesses, teaching companies how to market, package and sell their products in the metropolitan area. They aim to develop a “sustainable self-sufficient industrial model” in indigenous villages. A self-sufficient model will help businesses survive with the modern market economy and traditional manufacturing skills. CIP also plans to increase healthcare services and protect indigenous rights to bridge the inequality gap.

The Renewal Foundation, a nongovernmental organization devoted to children’s education, is helping bring people out of poverty. The Bunun Tribe’s official website, run by the Bunun Cultural and Educational Foundation and the Bunun Tribal Leisure Farm, aims to develop educational and financial sectors of their own communities.

Taiwanese indigenous communities are gradually rising out of poverty. Recent statistics have shown increasing education rates and income equality. With assistance from the government and other institutions, aboriginal people will preserve their cultural heritage and reintegrate back into society.

Zoe Chao
Photo: Flickr

Innovalab Fights Poverty
Guinea-Bissau is a country made up of 1.8 million people comprising diverse ethnic groups, different religions and languages. About half of the country’s populace lives in urban cities such as Bissau (the capital), and the other half of the population lives in rural areas and depends mostly on subsistence farming. The country, which was once a Portuguese colony, is currently one of the poorest countries in the world, struggles with a large foreign debt and has become a centerpiece for the trade of Latin American drugs. InnovaLab, a social enterprise based in Guinea-Bissau, is working to improve conditions in the country.

The Situation in Guinea-Bissau

According to an interview with a past missionary from BMS World Mission who served in Guinea (Guinea-Bissau’s neighboring country), the general West African populace faces many challenges to development. These challenges include the lack of access to sanitary water, lack of access to healthcare and the lack of social mobility. While there are some houses that had solar panels installed to conserve energy, this was not a norm. Most of the populace had to deal with power outages as and when they came.

Despite the country having an abundance of natural resources, Guinea-Bissau faces a chicken and egg problem with regard to its efforts to fight persistent poverty. The country faces constant political and economic stagnation due to the deep-rooted problems within the country. As a result, the population is largely dissatisfied. For instance, one of the recurring problems is that schools do not operate on a daily basis. Additionally, workers do not always receive their wages. Lack of access to a sustainable income and public services limits the long term growth and development of the country’s human capital. This in turn stalls solutions to these underlying problems.

Furthermore, the country heavily relies on receiving international aid due to the ongoing domestic instability. International donors do not always release the funds on time, which leads to frequent protests.

InnovaLab Fights Poverty by Promoting Entrepreneurism

InnovaLab fights poverty by setting up an entrepreneurial ecosystem amidst all the country’s uncertainties. It does this by supporting and mentoring people through online courses, boot camps and technology-driven initiatives. The founder of InnovaLab is Adulai Bary. InnovaLab was born in 2015 out of the movement of the increasing presence of startups in the markets. Bary’s idea for InnovaLab focuses on helping to generate employment, reducing incidences of crime and helping to promote small businesses.

InnovaLab fights poverty in Guinea-Bissau by playing a key role in the backbone of the country’s economy. It connects public and private sector organizations to work on innovative projects around new technologies and increased job opportunities. The organization emphasizes the importance of mentoring and incubation resources that it provides to its members. It offers personal business coaching and exclusive invitations to educational and networking events. It also provides consulting on revenue growth and sales to these budding entrepreneurs.

InnovaLab is also opening up a co-working space for people to brainstorm and collaborate in a safe environment. It hopes to attract small businesses, freelancers and startups. These organizations would benefit from 24-hour access to working facilities, free WiFi and housing for a maximum of 15 people. InnovaLab also has an acceleration and expertise center that provides professional services such as finance, legal and accounting services to entrepreneurs. InnovaLab fights poverty by providing opportunities for business owners to get a more in-depth understanding of the problems and opportunities for improvement.

Progress Thus Far

InnovaLab has succeeded in helping various local projects and online businesses come to fruition. Examples of InnovaLab’s success stories include Bandim Online (an e-commerce site for domestic products), a community ICT school, Big Technology (a service supplier company) and UBUNTU (a solar energy project). InnovaLab has a variety of other promising entrepreneurial ideas that have yet to meet the funding requirements. Notably, a total of 5,000 people benefitted from InnovaLab’s educational courses, and 20 new enterprises were incubated by InnovaLab’s efforts. More recently the organization has responded to the impact of COVID-19 on the business environment and economy of Guinea-Bissau. InnovaLab held a virtual forum on the 17th to 19th of July 2020 to initiate and spearhead the brainstorming and collective efforts of private and public sector workers in the fight towards dealing with the pandemic.

In the midst of domestic challenges and uncertainties, InnovaLab is a breakthrough in the entrepreneurial space of Guinea-Bissau. It provides sustainability for small businesses to flourish with the right mentoring and resources. InnovaLab fights poverty by creating a counter-culture to poverty in periods of instability by supporting the growth and cultivation of businesses and startups.

Mariyah Lia
Photo: Flickr

Increased Information TransparencyThe ready-made garment (RMG) industry is a significant source of growth for Bangladesh’s rapidly developing economy. Bangladesh is the world’s second-largest exporter of garments, and the garment industry in Bangladesh employs 4.4 million workers in more than 4600 factories. However, the size and complexity of the industry leads to poor working conditions and exploitative labor practices. These practices often do not garner attention until a tragic disaster happens, like the Rana Plaza collapse. As such, there is an urgent need for increased information transparency in the garment industry in Bangladesh to improve labor rights and workplace safety for these millions of workers. The digital initiative Mapped in Bangladesh is stepping up to the challenge.

Rana Plaza: Leaving a Legacy of Responsibility

The Rana Plaza building, located in Dhaka, Bangladesh, housed five garment factories that supplied American brands. Its 2013 collapse is one of the world’s worst industrial disasters, killing at least 1,1232 people and injuring 2,500 more. In the wake of the tragedy, activists and consumers worldwide demanded the codification of workplace safety standards. However, the lack of transparency surrounding which brands used the building to produce their garments concealed the companies involved. In fact, people had to dig through rubble for loose clothing labels to confirm which companies worked at Rana Plaza.

As such, the Rana Plaza collapse was an eye-opening example of how a lack of transparency costs lives. It indicated that the first step toward reforming the garment industry in Bangladesh requires greater visibility of workers and their working conditions. Although companies saw a lack of transparency in their supply chain as a competitive advantage, disclosing of supplier factory information actually drives profits. Indeed, 85% of executives from the apparel and footwear industries say that “transparency is either extremely or very important to the industries’ success.”

Consumers’ focus on ethical manufacturing has also driven this call for reform. A survey from Accenture found that when consumers’ values do not align with a company’s position on social, ethical, and environmental issues, 42% of consumers will step away from the brand. Further, 21% will never buy from that company again. In this way, transparency serves as a tool for accountability. It provides consumers with the information they need to make more informed shopping choices and demand more ethical practices. That said, the push for information transparency requires more than shifting consumer preferences.

Mapped in Bangladesh

A promising milestone for information transparency in the garment industry in Bangladesh comes from Mapped in Bangladesh (MiB). Implemented by the Centre for Entrepreneurship Development at Brac University, this initiative has collected and published a comprehensive database of RMG export-oriented factories. It formats this information as an interactive, digital map reminiscent of Google Maps. The initiative came about as a pilot project in response to the Rana Plaza Collapse. As a stakeholder of the RMG industry explained, “If we had such a map during the Rana Plaza tragedy, we could have reacted more quickly.”

Syed Hasibuddin Hussain, the project manager for MiB, outlined their methodology to The Borgen Project. Despite not knowing the exact number of factories, the team determined the general industrial areas where they exist. Because single factories interact with the larger RMG system, they rarely exist in remote villages.

From there, they decided the most effective method would be a door-to-door census on the streets of the industry’s four major districts. Hussain described the process as using “the snowball effect to identify additional factories,” no matter how dispersed individual factories are within a cluster. As of August 2020, the MiB site displays complete data sets from the Dhaka, Gazipur, and Narayanganj districts. The researchers expect to add the last major district’s data in 2021.

Mapping Transparency for Consumers

The project aims to fill the absence of an authenticated and continuously updated method of tracing RMG producers. Additionally, it serves as an alternative to sources with unverified secondary information. Hussain added that MiB can authenticate some data points directly. These include factory name, address, certifications, products made, export countries and worker’s participation committees. However, it is impossible to completely validate information like the number of workers and their demographic breakdown.

MiB’s formal data validation process also involves cross-checking for consistency with both brands and other outside sources. Specifically, it verifies memberships with certain associations and again with the factory at a later date. When MiB finds contradictory information during the verification process, it flags the data. This lets the consumer make the final call for their purchases.

Some factories lie about which brands’ products they manufacture for marketing purposes, but brands themselves also challenge the data. Hussain shared, “Initially, we thought this transparency would be attacked by the local associations, but it was unexpected for us that brands would come in and falsify their reporting,” even when the factories show proof that they do manufacture said brands. These inconsistencies highlight exactly why transparency in the garment industry in Bangladesh is so important.

The Impact of COVID-19 Moving Forward

COVID-19 has hit Bangladesh’s RMG industry especially hard. At the end of April 2020, 1,149 factories reported that brands canceled orders for more than $3.16 billion worth of garments. In the wake of these economic impacts, activists are concerned that progress on worker protections and safety regulations after the Rana Plaza collapse will disappear.

In May and July of 2020, MiB surveyed export-oriented RMG factories to create a COVID-19 specific map. It found that a large part of the garment industry in Bangladesh is back in action. “It seems like things are getting normal, but one of the questions we asked is about how optimistic they are about the immediate future, and we found out that people were extremely pessimistic,” said Hussain. There is a possibility that factories are using their current capacity for orders that were initially canceled and recently reinstated.

Perhaps the pessimism also results from in the market uncertainty facing workers during the upcoming winter season. With the current quarantines in many Western markets, the RMG industry is not working on a natural order pipeline. Though factories traditionally produce knits and coats in the winter season, demand is sure to change with people staying home. With this added unpredictability for workers who already live under extreme financial uncertainty, the garment industry in Bangladesh requires increased information transparency now more than ever.

Christine Mui
Photo: Wikimedia

Glamour BoutiqueThere are a number of advancements in legal gender rights across the world. However, social norms still play a large role in preventing women from attaining economic independence. Globally, women are almost three times more likely than men to work in the unpaid sector—namely domestic work and caring for children. When the women who are confined to this lifestyle are able to find paid work, it is often part-time and low-wage. This sets them at a significant financial disadvantage. They must depend on their husbands and families to provide for their basic needs.

The Fix

The Inclusive and Equitable Local Development (IELD) sector of the United Nations Capital Development Fund fights to right these wrongs. They invest in small businesses in developing countries that are largely run by women. Through their investments, these businesses expand, hire more people, increase their consumer market and earn more money. When women achieve financial independence, the reward is multiplied. Economically secure women are likely to invest in education, health and their community.

The Entrepreneur

One of these businesses that the IELD benefits is Glamour Boutique—a fashion business in Jessore, a small town in southwestern Bangladesh.

Glamour Boutique was officially founded in 2007 by Parveen Akhter. Akhter had been kidnapped and forced into child marriage when she was in the ninth grade. Her husband—her kidnapper and a drug addict—made it a habit of abusing her throughout their seventeen-year marriage. Encouragement from her oldest son, 16-years-old at the time, led her to file for divorce and set up the Glamour Boutique House and Training Centre. It was based in her home and capitalized on the embroidery and tailoring skills Akhter had taught herself over the years. Once business picked up, she moved into a rented space.

This is when the IELD stepped in. Akhter had little money, a small market and limited machines. They loaned her nearly 30,000 USD to expand. Since then, Glamour Boutique has employed over 50 women and consistently trains around 20 in tailoring and embroidery.

More than anything, the company is female-friendly. It helps to lift women out of poverty and give them a purpose and community. Additionally, she is sensitive to her employees having outside commitments. She offers short four-hour shifts for women who are enrolled in school, have children or have other situations warranting a flexible schedule.

Mussamad Nafiza, an employee at Glamour Boutique, testifies to the beauty of working there. She describes her own and others’ financial gain and independence as well as her dreams of opening a business similar to Akhter’s. Dipa Monjundar, a friend of Akhter’s and fellow small business owner, commends Akhter’s work and celebrates the economic empowerment of women across Bangladesh.

Next Steps

Although important, investing in women’s businesses is not the only way to help women achieve economic prosperity. Commitments from men and the government are essential. They need to respect, uphold and uplift women’s rights to sustainably change the way communities approach gender disparity.

Jessore’s mayor participated in several gender equality training sessions before starting any major projects. If other community leaders encourage participation in similar training courses, economic gender parity may no longer be a far-fetched dream.

Rebecca Blanke
Photo: Flickr

cash grants in Kenya
If you have ever wondered what good remittances do for poverty reduction, a study done by the researching nonprofit Innovations for Poverty Action (IPA) could help put things in perspective. Researchers at IPA evaluated the economic progress of Kenyan villages from 2014 to 2017 after families were given unconditional cash transfers or UCTs. The cash grants in Kenya were provided by a charity organization called GiveDirectly.

The results of the study highlight the potential UCTs have to financially elevate communities around the world. However, when dispersed without careful consideration, some aspects of cash transfers can be detrimental. Let’s discuss GiveDirectly’s trial and why it was successful in initiating great economic stimulation in Kenya.

The Logistics of the Study

The study took place in villages surrounding Lake Victoria in Siaya County, Kenya. To avoid a concentration of funds, researchers categorized villages by two groups: villages with high saturation and low saturation status. Random assignment appointed two-thirds of high saturation villages and one-third of low saturation villages to the trial. As an extra measure to confirm financial need, GiveDirectly only chose families residing in homes with a thatched roof; about one-third of households qualified.

GiveDirectly provided money transfers in intervals to a family member, totaling 87,000 KES, or 1,000 USD. Data was recorded through baseline and closing surveys taken by the participating families and local business owners. The surveys covered topics such as “household financial, physical, and mental well-being, business performance, changes in market prices, and the provision of local public goods.”

Cash Grants in Kenya: The Results

The increase of income stimulated a surge in spending from recipient families. For the most part, these expenditures occurred in the region. Business disclosed that 86% of their clientele were from local or neighboring villages.

The increased consumption had a spillover effect, as non-participant households also saw an influx of income. According to their report, GiveDirectly claims that having higher local enterprise revenues, “in turn, appears to increase the income of local untreated households, leading to higher spending on their part.” The grants created a pattern of earning and consuming that resulted in overall higher cash flow in the area.

Furthermore, participant households across the board showed “higher levels of psychological well-being, food security, education, and security.” Increasing their financial security had an overall positive impact on many other aspects of their lives.

Why it Worked

Before the 2014 study, UCTs previously given by GiveDirectly were also proven to generate economic stimulation in Kenya due to rising consumption and investments. To fully understand the results of this study, it is important to note a few specific factors.

First, GiveDirectly provided UCTs rather than conditional cash transfers, or CTTs. The World Bank defines CCTs as being “contingent on behaviors like school attendance and visits to health clinics.” These requirements do not come as easily to some families as others, especially those living remotely. In contrast, UCTs provide financial support to families without burdening them with specific requirements that they may be unable to meet.

The location also played a big role in the success of this trial. GiveDirectly chose families from an area containing a major national road that IPA determines may be one of the reasons for economic overspill. The IPA report also depicts Kenya’s traditional “harambees,” gatherings meant for community fundraising, as another cause for the balanced wealth distribution.

Moving Forward

The economic stimulation in Kenya proves the efficiency of tactful cash grants. GiveDirectly’s accomplishments in poverty alleviation are just a fraction of what is possible. Moving forward, if more funds are devoted to foreign poverty aid, it is possible for such results to be seen on a global scale.

Lizt Garcia
Photo: Flickr

Entrepreneurship in Africa
Africa stands as a continent of nearly 1.3 billion people, with 27 nations having a poverty rate of over 30%. As COVID-19 spreads through the region, falling demand and break down of supply chains threaten to further slow already-sluggish growth rates. Ever the land of great resilience and innovation, hundreds of enterprising individuals have excelled in Africa, enriching themselves and their countries. Increasingly more Africans are seeking out entrepreneurial and small business opportunities to combat poverty. One such businessman helping in this effort, multimillionaire Tony Elumelu, is using his wealth to fuel entrepreneurship in Africa and transform the continent into a booming commercial hub and providing hope for the future.

Roadblocks to Economic Growth in Africa

Africa’s economy has long suffered stubborn development setbacks. Government inaction, fragile infrastructure and widespread instability have hindered the region’s industrialization and economic growth. Many countries grapple with deficient infrastructure, including inadequate means of transportation, limited access to electricity and water and poor telecommunications systems. The World Bank estimates that the resolution of these structural shortcomings would increase the region’s productivity by as much as 40%.

Politicians have been reluctant to bolster manufacturing despite an international consensus on Africa’s need for industrialization. Such apprehension can be partially attributed to Africa’s unique position in the world economy: a pre-industrial continent already aspiring to post-industrialism. This misguided ambition has discouraged lawmakers from implementing protectionist policies. Without tariffs that benefit domestic manufacturing industries, larger international corporations choke out Africa’s budding factories and discourage entrepreneurship in Africa.

Ongoing fiscal and political instability serves to magnify these already difficult issues. Mounting debt levels divert money from investment to reimbursement and waste significant capital on unproductive endeavors. For example, sub-Saharan Africa’s aggregate debt-to-GDP ratio doubled from 2008 to 2017. Additionally, frequent leadership turnover has deterred international companies from entering African countries.

Working to mitigate these hurdles is Tony Elumelu, the founder of Heirs Holdings Ltd, a private investment corporation that operates in the energy sector. Beyond oil and gas, Elumelu is investing in a far more valuable asset: Africa’s future innovators. His nonprofit organization, the Tony Elumelu Foundation (TEF), empowers young entrepreneurs with the resources they need to build meaningful businesses.

How The Tony Elumelu Foundation Advances Entrepreneurship in Africa

The Tony Elumelu Foundation fosters entrepreneurship in Africa to alleviate poverty and spark economic gains. The TEF Entrepreneurship Programme offers grants and mentorship to innovative African businesspeople, allowing them to transform their ideas into profitable corporations. Endowed with a generous $100 million, the program has already assisted 9,000 individuals in creating businesses that invigorate their entire communities.

The broad scope of TEF’s investments cultivates economic diversification, a key tenet of development and stability. Some of the organization’s recent beneficiaries include:

  • Stars From All Nations (SFAN): Headed by Tom-Chris Emewulu, SFAN nourishes young minds through informative programs and workshops. Aimed at augmenting and supplementing children’s schooling, the company is helping to resolve Africa’s undereducation crisis.
  • Doctoora: Jubril Odulana, a Nigerian doctor, created Doctoora as a solution to Africa’s limited healthcare access. The platform collaborates with medical professionals to open private practices and ensures patients receive the care they need. In the face of COVID-19, Doctoora plays an essential role in promoting public health across the region.
  • Ufinix.com: The brainchild of Nnodim Uchenna, Ufinix.com offers aspiring developers comprehensive coding courses and guidance, preparing them for future careers in computer science. By equipping students with technological knowledge, the website is propelling Africa into the digital age.
  • Light Salone: Light Salone founder Mohammed Akamara aims to redress Sierra Leone’s severe energy shortage. In pursuit of this goal, Akamara engineered affordable hybrid solar-wind power sources to electrify rural areas and boost development. Manufactured using recycled supplies, these Sowind Technologies provide a mindful solution to Sierra Leone’s electrical desert.

By supporting young visionaries, the Tony Elumelu Foundation is generating hope, ambition and entrepreneurship in Africa. Its passionate beneficiaries are launching innovative and impactful companies that not only empower their creators but also their communities. The foundation has employed the continent’s most creative, altruistic minds, initiating a cycle of philanthropy that portends Africa’s future prosperity.

Rosalind Coats
Photo: Flickr

Multinational Corporations in Developing Countries
Multinational corporations (MNCs) have a global presence, even in developing countries. There are over 80,000 companies that drive the 21st-century economy. For example, Coca-Cola sells its product in nearly every country and has established over 900 bottling facilities worldwide. MNCs have propelled the GDP of their parent countries, most notably the United States, Japan, China and Western Europe, but how do their international operations affect developing countries?

It is difficult to say whether multinational corporations in developing countries are decidedly ‘good’ or ‘bad.’ One must consider many perspectives before making that judgment. However, researchers have identified a variety of positive and negative impacts applicable to most MNCs.

Individual Wellbeing

Multinational corporations in developing countries employ millions of people, but the quality of these jobs is often low. When Coca-Cola instituted a bottling facility in El Salvador, its supply chain hired sugar cane harvesters. El Salvador needed this hiring surge, as its poverty rate is 25.70%. However, an Oxfam study discovered that many workers receive less than the minimum wage. Additionally, harvesters face physical risks (burns, lacerations, exhaustion). This is because their work entails cutting cane stalks with a machete in chemically treated agricultural fields.

Perhaps the most notorious examples of worker exploitation in developing countries are sweatshops. These facilities in MNC supply chains provide employment with long hours, low wages and unsafe working conditions. An estimated 250 million children work in sweatshops worldwide, working over 16 hours a day to provide products for the clothing and toy consumer base.

Some experts argue that sweatshops are helpful to local populations because they provide job opportunities that would otherwise not be there. This defense, the “Non Worseness claim,” essentially states that sweatshops are better than nothing and that even if there were regulations on improved wages and working conditions, the jobs would be outsourced to a place where those restrictions do not exist. Defenders of MNC sweatshops often cite this controversial idea.

Economics

At first glance, it may be easy to claim that MNCs are unequivocally good for developing countries’ economies. After all, they provide jobs that were not present before, even if they are dangerous and pay low wages. Additionally, MNCs bring in capital flow to developing countries by building factories, which require construction workers and surrounding infrastructure, thereby stimulating economic development in host countries.

However, beyond the short-term benefits, the economic value of multinational corporations in developing countries becomes rather hazy. Most of the profit produced by an MNC subsidiary in a developing country goes to the company’s parent country. In the case of El Salvador, most profits generated by cane harvesters return to Coca-Cola’s executives in the U.S.

When multinational countries flood the economic landscape of developing countries, small businesses and local entrepreneurs find it difficult to compete. Thus, host countries develop a kind of dependency where they cannot break off from the MNCs’ influence in fear of rising unemployment. They also cannot compete with MNCs because of their established production methods.

Solutions

The Human Rights Watch and other humanitarian nonprofits have called for supply chain transparency in MNCs, particularly clothing and footwear industries, to publicize and improve working conditions in sweatshops across the globe. These corporations would have to provide specifics about factories manufacturing their products beyond the general tag: “Made in China.”

Additionally, the social inequities surrounding MNCs appear to be a result of their intentions. Paying low wages, building factories with unsafe working conditions, and outsourcing production relate to a key goal of MNCs: the corporate mantra, “maximize shareholder value.”

But MNCs do not need to operate according to this objective. At the very least, maximizing profits is not the only objective that they can strive for. Many MNCs, such as Ben and Jerry’s and Patagonia, have altered their practices to become benefit corporations. This role includes adding the goal of benefiting the public good to their company mission. Through this method, MNCs have a chance to reverse social injustices by redirecting their profits into improving the social, environmental and economic processes in developing countries.

Christopher Orion Bresnahan
Photo: Flickr