Archive for category: Economy

Information and stories about economy.

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Medical Advancements in Iran Prove to be a Success

Medical Advancements in IranIran is a developing country located in western Asia as part of the Middle East. In the past several decades, Iran has accomplished major strides in terms of its health care system and medicine. The following list details only a few of the successful medical advancements in Iran that have been developed within the last decade.

The Health Care System

Iran adopted the Primary Health System in the 1990s, which revolutionized its health care system. Since its initiation, the country’s life expectancy has increased by eight years. This has had positive effects on both their economy and poor communities. Also, Iran has done tremendous work in improving the accessibility of health care. Currently, more than 90% of rural populations have access to affordable health care. Previously, there was a major gap in providing health care to their less populated, rural areas where many vulnerable groups resided.

Local Production

Since the Iranian Revolution in 1979, the country has made initiating the production of locally produced medicines and drugs a priority. Prior to the revolution, Iran relied on imports from foreign countries for about 70-80% of its pharmaceutical ingredients. As of 2018, it is estimated that around 97% of their drugs were locally produced and manufactured.

Focusing on local production boosted Iran’s economy, making the country a major competitor in the world market. It also increased their GDP through the exportation of their locally produced pharmaceuticals. Furthermore, the country has strict regulations in place for importation. Iran both follows American guidelines and creates its own rules, which ensures high-quality, safe products.

Iran’s health minister stated that the country saves around 700 million euros simply by producing their own products. The country can now allocate this money to other necessities, which displays the importance of medical advancements in Iran.

Medical Biotechnology

Biotechnology is the production and development of products by manipulating living organisms. Medical biotechnology has the power to uplift health care systems for countries across the globe. Iran’s advanced health care system has allowed them to become a leader in medical biotechnology across the Middle East and North Africa.

Iran’s boost in local production stems from pharmaceuticals to biotechnology. As of 2012, the country had 12 approved products and 15 more products pending approval. These products placed Iran among the frontrunners of biotechnological production. Other countries now rely on Iran for medical trade. Biotechnology has the potential to produce a multitude of medical advancements in Iran. If the country earns the spot as the leading country of biomedical technology, the benefits for their economy and citizens would be numerous.

New Medical Treatments

Medical advancements in Iran have also led to new medical treatments. The country has developed new, upcoming medicines and treatments in hopes to cure certain diseases. Just this year, a group of scientists announced they developed an herbal treatment for epilepsy, Fenosha, that resulted in successful outcomes during their clinical trials.

Reza Mazloom Farsibaf, the founder of the medicine, stated there is no other medicine that competes with Fenosha. The treatment is non-toxic and has minimal side effects and symptoms. If approved, mass production is expected for Fenosha. The herbal medicine could potentially become a viable option for the 340 million people across the world that require treatment for epilepsy. The country is expected to continue generating products that will further mobilize its position in medicine.

– Bolorzul Dorjsuren
Photo: Flickr

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The Impact of Conflict on Poverty in Mali 

Impact of Conflict on Poverty
Conflict can be a catalyst for an array of poverty-related events. It can impact poverty by depleting resources, interrupting supply chains, destroying infrastructure, taking lives and much more. Unfortunately, this trend has held in the country of Mali, which currently shows the significant impact of conflict on poverty.

Conflict Background and Economic Impact

The Mali War is an ongoing conflict that began in January 2012. Since then, violence between the north and south of Mali has ebbed and flowed in severity but never subsided. Malian people, including the Tuareg, in the north of Mali, have expressed resentment and concern as they feel that governmental groups and political factions are neglecting their concerns and treating them unfairly. Ethnic divides, fundamentalist fighters and an unstable political system contribute to this conflict.

So far, Mali has noted thousands of deaths and thousands of more people fleeing the conflict. As mentioned previously, many connect the weak economic sector in Mali to the outbreak of unrest and violence. Almost cyclically, this violence is now negatively impacting the economic sector. Before the conflict broke out, tourism accounted for more than 40% of Mali’s GDP. Researchers estimate that 8,000 people lost their jobs due to the drastic decrease in tourism after the conflict began. The economic connection highlights the ranging impact of conflict on poverty.

Many of those living in the north of Mali, mostly Tuareg and Arab groups, depending on the agricultural sector for their income. The government has invested very little in this sector and focuses primarily on tourism and the export of gold and cotton from the south. This has led many agricultural producers in the south to grow jaded toward the government due to their increased likelihood of experiencing extreme poverty.

The Impact on Public Health

Roughly one in three children in Mali are facing chronic malnutrition. An annual average of nearly 4 million people in Mali do not have access to an adequate amount of food. More than half of Mali’s children and young adults are illiterate and displacement has forced many out of school. A significant number of children in Mali are at great risk of recruitment into militant groups, further threatening children’s safety, educational resources and ability to climb out of poverty.

At its base level, the conflict in Mali threatens public health by the sheer loss of life it has caused. In 2018, armed groups killed hundreds of civilians. The byproducts of this violence caused even more people to experience extreme poverty, malnutrition and death. Additionally, more than 200,000 people have fled Mali altogether to avoid the violence. This stunts Mali’s economic growth, which reaffirms the dangerous impact of conflict on poverty.

Current Aid and Support Efforts

A military coup ousted the former president of Mali, Ibrahim Boubacar Keïta, on August 19, 2020. President Bah Ndaw became the interim leader of Mali and will hold the position until Mali can hold an election. Some are hopeful that if the nation can hold a legitimate election, much of the conflict in Mali will subside. In the meantime, many local and international nonprofit organizations are mobilizing to aid in poverty reduction efforts throughout Mali.

  1. World Vision began providing aid in Mali in 1975, even before the conflict. In 2012, during the height of the conflict, World Vision provided aid in the form of food, clean water and shelter to more than 150,000 people throughout Mali. Additionally, more than 60,000 children in Mali are currently benefiting from World Vision’s child sponsorship program. The program allows donors to provide monetary assistance to and communicate with an impoverished child. Many of these sponsored children in Mali reside within conflict-ridden areas.
  2. Peace Direct, another nonprofit organization, focuses on peacebuilding efforts in Mali. The organization supports communities in their implementation of peacebuilding; in 2019 alone, Peace Direct supported more than 20 projects throughout Mali. Peace Direct realizes the importance of community growth, both physically and emotionally, to peacebuilding. A lack of communal trust can be detrimental to poverty reduction as teamwork makes progress more effective and efficient. Additionally, the building of trust and understanding among conflict groups is essential to support continued growth and stability throughout Mali. This trust will prevent future conflicts and allow Mali to focus on economic growth and poverty reduction tactics throughout the country.
  3. The Peacebuilding Stabilization and Reconciliation Project, run through USAID, began in April 2018 and should reach completion in March 2023. This project focuses on rebuilding many of the conflict-ridden areas throughout Mali, providing rehabilitation resources to those impacted by the violence, increasing civic engagement and helping Mali’s government introduce measures to prevent violent outbreaks in the future. USAID believes that providing community members with an active role in their governance will decrease dissent, enhance democratic values, reduce the likelihood of future conflict and decrease the poverty level throughout Mali. Success will also ideally increase GDP and overall well-being while mitigating the impact of conflict on poverty in Mali.

The Future of the Region

The domino effect that violence can have on the prosperity of a nation comes as no surprise. Violence decreases an individual’s ability to focus on economic growth or public health. It overtakes governmental initiatives and grabs attention from the media, forcing poverty-related issues to take a backseat. The importance of the international community supporting peacebuilding efforts in Mali remains essential. The path toward peace will trickle-down benefits for many subsets of Mali’s society and will decrease the occurrence of extreme poverty throughout the nation.

– Danielle Forrey
Photo: Flickr

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Elderly Poverty in Armenia: The Hidden Issue

Elderly Poverty in ArmeniaArmenia is not a country at peace. For the past three decades, tensions between Armenia and Azerbaijan have increased. As the border dispute turned deadly in September 2020, rumors emerged of potential involvement from outsider countries, such as Turkey and Russia. However, the country struggles with a concurrent problem. Elderly poverty in Armenia is a stifling issue in the country, which needs just as much attention.

The Current Crisis

In addition to a looming war, Armenians have suffered a vast diaspora. More Armenians live outside Armenia than inside the country. Armenians who live outside the country total anywhere from double to quadruple the number of those living within Armenia. The older generation is the main group still residing within the border. One reason is that older groups have fewer professional opportunities outside of Armenia, so they often stay put. This affects a large portion of society. More than a quarter of Armenia’s population is older than 54 and one-half of this demographic is older than 65 years old.

The global recession of 2008 led to increased poverty rates across all demographics in Armenia. At that time, the rate of extreme poverty among Armenians older than the age of 65 was 2% and the rate of non-extreme poverty for this group was 29.5%. By 2017, the rate of extreme and non-extreme poverty had fallen for Armenians older than 65, but either increased or remained the same for Armenians between the ages of 50 and 59.

All of these crises leave the elderly in Armenia underserved. However, there are organizations fighting on behalf of this group.

Armenian Caritas

Armenian Caritas, a community-based NGO, operates in Shirak, Lori, Gegharkunik, Ararat and Yerevan. More than a third of its staff are volunteers and the organization’s goal is to provide “social inclusion and care of the elderly.”

Armenian Caritas uses a comprehensive method to address elderly poverty in Armenia. Since 1995, the NGO has taken a long-term approach to anticipating the needs of its clientele. Thus, it recognizes that by 2050, a quarter of Armenia’s total population may be between the ages of 60 and 64.

Armenian Caritas focuses on providing “rehabilitative items,” like crutches and moving toilets, to elderly patients. Similarly, it offers psychological and physical health care to patients with chronic diseases. These methods are part of a larger strategy of social inclusion.

Elderly Armenians represent a large and growing percentage of Armenia’s domestic population. As such, Armenian Caritas works to ensure that elderly Armenians never experience marginalization. The organization shares its methodology of elderly care with Armenian medical colleges and institutions. In this way, elderly care is part of Armenian practice — the tradition of caring for its vulnerable and aging populations.

An End to Elderly Poverty

A solution to the border skirmish between Armenia and Azerbaijan will hopefully reach a resolution through international mediation and earnest peace talks between the belligerents. Since the economy is still recovering and has continued to focus on growth, the government must address the diaspora by providing opportunities to draw the younger generations back to the country. Amid all of that, the country must not forget about older Armenians. There is hope for an end to elderly poverty in Armenia. However, concerted, sustained efforts are necessary to address it.

– Taylor Pangman
Photo: Flickr

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Poverty in the UK Fought Through Film

The United Kingdom is known for being a popular city for tourists with sites, such as Big Ben, the London Eye and Buckingham Palace. However, what may not be as well-known is the fact that the UK struggles with a significant class difference. It has an ever-widening gap between the poor and the affluent, which leads to high rates of poverty in the UK, specifically for children.

Child Poverty

Child poverty is one of the most notable effects of overall poverty in the UK. This poverty crisis struck Britain hard in 1999. Its child poverty proportion became the highest out of all of the western European countries.

In 2016-17, poverty impacted nearly 30% of children — 4.1 million — in the UK. In the following year — 2018-19, the number of children in poverty in the UK increased by 100,000. The trend is on an upward spike rather than its 2003 downward rate when child poverty was made a priority. Poverty in the UK needs to be addressed, especially among the youth. It leads to increased hardships in life from education to mental and physical health to employment and so much more.

Use of the Film Industry

Films produce major results in ending poverty. The film industry has positively impacted poverty in the UK in many ways. For one, the film industry creates many job opportunities. In 2009, the core UK film industry created or impacted nearly 100,000 jobs relating to film production, sales and tourism. Furthermore, portrayals of the UK in films contribute heavily to tourism and yearly account for about £1.9 billion. That brings the total UK film industry contribution in 2009 to raising the GDP by more than £4.5 billion.

The improved economy can be a promising solution for aiding the UK’s children out of poverty. The country can use the funds to help out the struggling citizens, focusing specifically on the poor. In this way, films pose as a promising solution for poverty aid in other countries as well.

“Poor Kids”

The amount of money and the impact the film industry has on the UK is astounding and a promising solution for poverty. However, the impact one film made for children in poverty is even more remarkable.

The film, “Poor Kids,” has made great strides toward improving the lives of impoverished UK children. The film illustrates the living situations of three families in poverty through the lens of the children. Courtney (age 8), Paige (age 10) and Sam (age 11) give detailed and heart-wrenching accounts of their experiences growing up in poverty. The film received much acclaim. It was a Broadcast Best Documentary Nominee, a Learning on Screen Nominee, a Televisual Bulldog Best Documentary Nominee and received the Chicago Film Festival Gold Plaque for Social and Political Documentary in 2012.

Films awards aside, “Poor Kids” sparked change in the community. Make Lunch is a program that began after Poor Kids debuted as a direct result of the film. The program contributes free meals to children during the times when school is not in session and when children could potentially go for a long period without food. In the summer of 2012, as many as 13 lunch kitchens were providing the free lunches.

And That’s A Wrap

The effects of poverty in the UK are prevalent, notably in the large number of impoverished children. The worsening situation provides a sense of sorrow to the country, but a solution presents itself. Films not only contribute to the wealth of a country, but they provide jobs as well. Both of these aspects could be potential resources to utilize when fighting poverty.

Additionally, films bring about emotion, and that creates change. The inspiration that “Poor Kids” ignited contributed to a charity that helps the children in poverty. With results, such as the Make Lunch program, films can yield great benefits for poverty in the UK and the world.

– Hailee Shores
Photo: Flickr

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Poverty in Croatia: The Basic Facts

Poverty in Croatia
Croatia is a country in Eastern Europe, part of the former Yugoslavia. It gained independence in 1991 after the Homeland War. As a result, the country struggles with poverty. It joined NATO in 2009 and the European Union (EU) in 2013, helping it advance as a country. In 2008, Croatia faced an abrupt economic slowdown that lasted into 2014, which plunged many into poverty. Now, poverty in Croatia is one of the nation’s most significant issues.

Croatia’s Economy

Croatia has high poverty rates. In 2015, an estimated 19.5% of the population fell below the poverty line. Further, 15% of people could not afford basic necessities, such as food, shelter and water. Poverty in Croatia increased when the nation separated from Yugoslavia during the Homeland War, changing from a communist to a free-market country.

Unemployment rates in Croatia are also high. The average unemployment rate is 12.4% (2017 estimate), which ranks Croatia 164th in the world for unemployment rates. For youth, the unemployment rate is 23.7%. This is largely due to a lack of qualifications for jobs. Skilled professionals have moved to work elsewhere in the EU and those remaining do not have the qualifications for the jobs that need filling.

Living in Poverty

Poverty is influenced by geography due to uneven developments throughout different regions. Small towns and other rural areas in the east and southeast, primarily near the border with Bosnia and Herzegovina and Serbia, are the most impoverished areas in Croatia. There is a 5.9% poverty rate in cities while small towns and rural areas note poverty rates of up to 34.3%.

Similar to the discrepancy between urban and rural areas is the disparity between the wealthy and the impoverished. The previous government did not allow such imbalances to occur. However, those in government positions received favored treatment. As Croatia recovered from the war in its new free-market system, the status of those previously disadvantaged worsened.

After Croatia became independent, the wealthy received advantages while the impoverished endured disadvantages. This created a large gap between the impoverished and the wealthy. Estimates from 2015 indicate that the most impoverished 10% of households in Croatia earn only 2.7% of all income while the wealthiest 10% earned 23%.

Some groups are more likely to live in poverty than others. Older people, single-person households and single-parent households, large families of four or more people, children lacking parental care, people with lower education, war veterans, victims of war and their families, displaced people and ethnic minorities are most likely to live in poverty in Croatia.

Additionally, retired people are also more likely to live in poverty. Retired people account for one-fifth of Croatia’s population. As a result, pension systems are becoming overburdened and people on pensions do not receive enough money to live. Those on pension receive less than 50% of the average Croatian salary.

Working Toward a Better Future

Croatia is working on alleviating poverty. Croatia is participating in the EU’s Europe 2020 strategy. The strategy aims to create sustainable and inclusive growth in the economy and employment while also reducing poverty and improving education. Because of regional disparities, Croatia is implementing a regional-based version of this strategy.

As a result, Croatia’s employment rate has improved from 60.6% of the population to 66.7% in the last five years. This figure even includes those who choose not to work. Also, the number of people at risk of poverty or social exclusion has reduced from 29.1% of the population to 23.3%.

After its economic slowdown in 2008, Croatia struggled with an increase in poverty. While it has the highest poverty rate in its region, Croatia is working to address this issue. The country strives to decrease the gap between rural and urban areas as well as the divide between different social groups.

– Seona Maskara
Photo: Flickr

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Ecovillages: The New GENeration of Poverty Reduction 

EcovillagesGreen growth refers to economic growth through the use of sustainable and eco-focused alternatives. These “green” alternatives benefit both the economy and the environment all while contributing to poverty reduction. Ecovillages are a prime example of an environmentally conscious effort to address global poverty. They are communities, rural or urban, built on sustainability. Members of these locally owned ecovillages are granted autonomy as they navigate a solution that addresses the four dimensions of sustainability: economy, ecology, social and culture.

The Global Ecovillage Network

The Global Ecovillage Network (GEN) recognizes that all four facets of sustainability must be addressed for maximum poverty reduction. Solely focusing on the economic or environmental impact will not yield optimal results. Embracing, not eliminating, the social and cultural aspects of sustainability should the aim of all communities in order to move toward a better future.

The development of sustainable communities around the globe is a commitment of the GEN. The organization’s outreach programs intend to fuel greater global cooperation, empower the citizens of the world’s nations and develop a sustainable future for all.

Working with over 30 international partners, GEN focuses on five defined regions. GEN Africa was created in 2012 and has overseen developments in more than 20 communities across the continent.

A Focus on Zambia

Zambia is one the countries garnering attention. Over half of Zambia’s population — 58% — falls below the $1.90 per day international poverty line. The majority of the nation’s impoverished communities live in rural regions.

Zambia’s government addresses these concerns by integrating the U.N.’s sustainable development goals into its development framework. With a focus on economic and ecological growth, Zambia could lay the groundwork for the success of its’ ecovillages.

Planting the Seed

The Regional Schools and Colleges Permaculture (ReSCOPE) Programme recognizes youth as the future keepers of the planet. As well as Zambia, the program has chapters in Kenya, Malawi, Uganda and Zimbabwe. The focus is on establishing regional networks to strengthen sustainable efforts. The Zambia chapter along with its 17 newly joined organizations work toward the goal of educating and encouraging communities to find sustainable methods of food production.

ReSCOPE seeks to connect schools and their local environments through the Greening Schools for Sustainable Communities Programme. The program is a partnership between GEN and ReSCOPE and has received funding from the Scottish government. Through education and encouraging sustainable practices, Zambia’s youth have an active role in ensuring future growth.

Greening Schools

Greening Schools strengthens the communities of four schools — the centers of resilience and a source of community inspiration. Beginning with nutrition and food security, students are able to play a part in developmental change. Their hard work includes planting of hundreds of fruit trees. The schools became grounds for hands-on agricultural experience and exposure to the tending of life.

However, the impact was not restrained within the schools. The greening schools inspired local communities to make seed security and crop diversification a commitment. In 2019, these communities “brought back lost traditional crops and adopted intercropping and other agroecological practices.”

As part of their sustainable development goals, the U.N. recognizes the value of investing in ecovillages. Goals 11 and 12 stress the importance of sustainable communities and responsible consumption and production respectively. Educating and advocating for youth to take part in ecovillages addresses this matter.

Coming generations will determine the future, and the youth wield the power to address global concerns like sustainability and poverty. Ecovillages are a great new way to break the cycle of poverty.

– Kelli Hughes
Photo: Unsplash

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The Fight to End Period Poverty in Ghana

period poverty in Ghana
Ghana, formally known as the Gold Coast, was the first African country to achieve independence from British colonial rule. Ghana is a leading country in Africa but continues to struggle with poverty. Period poverty in Ghana is a prevailing issue, especially in rural areas. One study in the Zabzugu and North Dayi districts found that 95% of girls in the region missed school due to menstruation.

The causes of period poverty vary. However, the key factors are affordability, lack of education on periods and a dearth of access to menstrual materials. Grassroots and international organizations have stepped in to help solve these issues. An end to period poverty in Ghana is achievable through various strategies.

Eliminating the Tax on Menstruation Materials

 In Ghana, there is currently a 20% import tax on menstruation materials because the country considers them a “luxury” item. This creates a price increase that makes it difficult for families in low-income households to afford these items. An income report on rural Ghanaian cocoa farmers, for example, estimated a monthly income of GHS 1,464 equating to about $329.

The estimated cost of one pad in Ghana averages about GHS 5. Organizations that support healthy menstruation management, like J-Initiative, believe the Ghanaian government should remove the tax on these materials. #FREEMYPERIOD and #DONTTAXMYPERIOD are just a few of the grassroots campaigns that advocacy groups created to urge Ghana’s government to consider menstruation materials as essential.

Recently, Ghanaian youth activists were successful in a six-month-long NOPADTAX campaign. Organizers garnered 2,000 signatures for a petition advocating for the removal of the tax. They presented the petition to the Ghanaian government on Menstrual Hygiene day, May 28, 2020.

The Ghanaian government heard the call for change and responded with a promising answer. At a political event held on August 22, 2020, Ghana’s vice president Dr. Mahamudu Bawumia said that “We will eliminate import duties on sanitary pads to improve health conditions, particularly for girls. It is very important. What we intend [on] doing is to make sure we produce sanitary pads in Ghana [and] until that happens in their numbers, we are going to eliminate import duties to bring down their cost.” Organizers view this as a prominent step toward ending period poverty in Ghana.

Manufacturing at Home

Ghanaian advocacy groups have proposed manufacturing menstrual materials like sanitary pads and reusable sanitary cloths. Organizations like Days For Girls have been working to create alternative solutions to combat period poverty across the globe. This organization employs local women and girls to produce reusable sanitary pads utilizing local materials.

The Ghanaian chapter of the Days for Girls organization has provided 10,000 girls across all 10 regions of Ghana with free menstruation kits through its initiative. Many Ghanaian advocacy groups have proposed grassroots manufacturing initiatives for menstruation materials as an economically and environmentally sustainable solution. Organizers believe that manufacturing menstruation materials on the ground would reduce costs and increase accessibility for these vital products.

Providing Menstrual Supplies

Providing menstruation supplies is another proposal to combat period poverty in Ghana. The Global Partnership for Education and DFID have offered to fund possible scholarship programs that seek to supply sanitary pads and school supplies for girls living in rural Ghana.

The Muslimah Mentorship Network, a Ghanaian-based organization, created a campaign entitled #1Girl12Pad. This campaign aimed to provide menstruation materials and education on menstruation hygiene for Ghanaian girls. The group visited a school located in the northern region of Ghana and provided almost 300 girls with 12 packs of sanitary pads each, which is enough to last a whole year. The organization’s goal is to implement the campaign in three schools in each region of rural Ghana. These kinds of initiatives also hope to encourage girls to continue to attend school while menstruating.

Education on Menstruation

Ghana has a variety of misconceptions and stigmas about menstruation. A popular belief is that menstruation is unclean, leading to mismanagement of menstrual hygiene. Organizations are taking the steps to educate both young women and men about menstruation. With proper education, Ghanaian girls will be better equipped to manage their periods and feel more confident with the idea of menstruating.

Advocacy groups hope that Ghana will place more importance on the value of proper menstrual hygiene and menstrual supplies through this increased knowledge. Education on menstruation is a vital tool in helping to reduce misinformation and stigma surrounding menstruation.

Normalizing Healthy Menstrual Hygiene Management

A healthy understanding of how to manage menstruation is vital. Menstrual hygiene management offers coping mechanisms to girls who suffer from cramps, headaches and other side effects of menstruation. Reports state that these coping skills help encourage girls to continue attending school while on their period.

One study on menstrual health management reports that pain was the leading cause of girls missing school. Healthy menstrual management combats this while also providing girls with crucial information on proper hygiene practices, like changing sanitary pads. Menstruation management can counteract the likelihood of hazardous practices that can lead to infection.

Period poverty is a prevailing issue in Ghana. However, there are many efforts to provide sustained solutions. Education on menstruation, healthy menstrual hygiene management and supply distribution and the elimination of the import tax on menstruation materials provide a feasible way to end period poverty in Ghana. 

– Imani Smikle
Photo: Flickr

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Understanding Poverty in Belarus

Poverty in Belarus
The Eastern European post-Soviet state of Belarus has had a tumultuous, bumpy ride in the last 30 years. A long-treasured satellite of the Soviet Union for almost the entirety of the 20th century forced the country to adopt massive changes when it broke off from the Soviet Union when it collapsed in 1991. Since then, one man has ruled this small country with an iron grip.

Alexander Lukashenko has been a dictator-like figure masquerading in a phony democratic society. He has been drawing social, economic and political policies in Belarus for the last three decades since the fall of the Soviet Union. Though he did reduce poverty according to official government statistics, there has been a high fluctuation in actual figures related to the poverty rate in Belarus since he took office in the early 1990s. Understanding the underlying causes and remedies of this poverty in Belarus is a complex affair, however, it is clear that certain political, economic and social actions have impacted the country in many ways.

Poverty in Belarus

Being one of the poorest countries in the geographical limits of Europe, the inability to properly take care of its citizens hampered Belarus. Showing its signs of instability, the Belarusian system creaked heavily during a brief two-year recession during 2015-2016. Within a matter of months, the share of the population living below the poverty line increased by three percentage points while in rural areas that number doubled. This fluctuation shows an economy and political system that is not yet resilient to normal market pressures. Additionally, according to a UNDP report, Belarus ranked in the bottom third in countries on the metric “socioeconomic sustainability” which predicts the longer-term impact of economic growth factors and the sustainability of economic output.

Compounding this dilemma, a comprehensive study concluded that much of Belarus’ economic growth in the past 20 years is quite vulnerable, citing both demographic concerns about aging and continuous reforms in the utility sector, which employs much of the workforce of the country. The myriad of challenges facing Belarus is not just abstract downstream economic impacts. President Alexander Lukashenko hampers the prosperity of his own citizenry in many ways through his brash leading style and the specific intricate political decisions that impact his citizens.

Mitchell Orenstein’s Views

According to the University of Pennsylvania professor of Eastern European Studies, Mitchell Orenstein, the Lukashenko regime “is certainly repressive. His regime regularly beats peaceful protesters and threatens and imprisons and tortures opposition presidential candidates.” This type of social order is not conducive to finding the best public policy that helps the most people, but rather a closed-off system that is resistant to change–which is important when advancing important economic interests that lift people out of poverty in Belarus.

Orenstein also noted that many Belurrusians tolerate much of this behavior, as President Lukashenko argues, “Belarus must have a powerful dictator to prevent invasion from outside forces, noting Belarus’s World War II history, and Russia’s desire to undermine Belarusian sovereignty. He also blames NATO for seeking to subdue Belarus.” This provides an underpinning of legitimacy that was successful at holding off dissatisfaction among his people, but as poverty trends stagnate, that dissatisfaction may inevitably boil over.

Improvements in Belarus

Upon examining the raw data, one might come to the conclusion that Belarus has been dealing with its poverty problem quite well since Lukashenko took office. In the year 2000, 41.9% of the population was below the national poverty line while in 2013 that number astoundingly fell 36.2 percentage points to 5.7% below the poverty line in the country. This was due to mass mobilization of the public sector for manufacturing–mainly to fuel the growing Russian economy at the time. Moreover, massive investments from multilateral organizations, such as the World Bank, spurred the production of critical infrastructure all around the country and international investment.

The World Bank’s Efforts

With the 90 million Euro investment from the World Bank in 2019, coupled with numerous other investments like the UNDP project, Belarus is making extraordinary strides in not only fighting poverty but also developing and cultivating the systems that attract foreign investment. Moreover, innovative NGOs are tackling every angle of the poverty cycle in the country. Organizations like Ponimanie are fighting to protect children’s rights and ensure positive outcomes for vulnerable groups of children.

This type of organization is crucial for breaking the cycle of poverty and providing opportunities to succeed in disadvantaged communities in the country. In addition, poverty in Belarus has received aid from the fact that Belarus’ main trading partners–like Russia–have experienced an economic boom as well. This reaction sets a favorable sequence into motion that spurs production in its energy and agricultural sectors lifting people out of poverty.

Looking Ahead

Importantly, while Belarus has made great strides in its ability to fight poverty (as shown by the successful years of positive economic policy and results), many of the trends have leveled off during recent times. Life expectancy, education and GNI per capita all increased dramatically over the course of the first years of the 21st century while then plateauing into the 2010s. This certainly shows progress but also highlights the inability of the Belarussian system to maintain and replicate the growth and prosperity that the country experienced 15 years ago.

While poverty in Belarus is most certainly an ongoing threat, understanding some of the more intricate causes of instability and continued poverty are important for determining the outcome of millions in this Eastern European country in the future.

– Zak Schneider
Photo: Flickr

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Combating Child Poverty in Iceland

Child Poverty in Iceland
Popular for its beautiful landmarks and picturesque views, Iceland is now facing an issue that highlights a much darker reality taking place on the nordic island. Iceland has been able to keep poverty at a relatively low percentage for much of its history. However, in the past decade, the country has experienced a drastic rise in poverty and child poverty in Iceland in particular. One can largely attribute this to the economic collapse that the country experienced a little over a decade ago.

The Situation

In 2008, Iceland’s banks defaulted as a result of loans that the country had taken out with many foreign banks. At the time, Icelandic banks were some of the most lucrative banks globally. The country accumulated a massive amount of debt following large loans and grand foreign investments. The intention was to further boost the economy and to take advantage of the financial prosperity taking place in the country at the time. The value of the Icelandic currency, the Krona, was at an all-time high with a 900% increase in value.

The country experienced an economic boom, and citizens received encouragement to take part in the flourishing economy. As a result, many purchased expensive homes, took on multiple mortgages and invested in foreign companies. The country was, unfortunately, unable to pay these large sums back. The result was catastrophic. Banks defaulted on foreign loans leading to a massive national financial crisis. Iceland’s credit was tarnished and almost every business in the country had gone bankrupt. Citizens ended up with large bills with little or no way to pay them. What followed was an extreme rise in poverty.

The Consequences of the Crash

Health care expenses experienced a peak, and with mortgages nearly doubling in cost, the price of living increased exponentially. Many households were unable to afford the basic and vital services required for daily living. According to a report discussing the consequences of the crisis, unemployment rates rose to 7.6%. This was 5% higher than the annual unemployment rates prior to the economic downturn. Inflation was another result of the crash. Mortgage prices increased nearly doubling.

With the national currency, the krona, experiencing a decrease in value, the price of many goods and services suffered an impact as well. Iceland saw a substantial rise in housing insecurity and homelessness. Citizens took to the streets to protest many of the issues taking place at the time, and to express their frustrations with the government’s reactions to the crisis. This resulted in a new left-leaning government that promised to offer support for its struggling citizens.

Child Poverty in Iceland and Government Aid

Child poverty saw a drastic rise during this time of economic downturn. In fact, child poverty increased from 11.2% to 31.6% between 2008 and 2012. Unemployment was on the rise, and families faced immense financial strife that greatly affected the home. Iceland’s government was able to provide its residents with support for regular access to vital resources such as food, housing and health care. Health care programs that Iceland put in place prior to the crash offered much-needed support to Icelandic citizens with health care services during the crash.

The Icelandic government also provided support in many areas. This included welfare services for low-income households, along with a tax decrease for low-income earners and a tax increase for high-income earners. This ensured financial support for the most vulnerable during the crash. Low and mid-income-earning citizens received social benefits and debt relief. Wealth redistribution played a large role in the economic support provided for citizens during this time.

The Case of Child Poverty

The ways in which poverty can present itself differs from nation to nation. One can find many of the challenges most common amongst Icelandic children living in poverty in many nations across the globe. According to a report by Humanium.org, some of the key issues that impoverished Icelandic children face are varying health issues, emotional strife, sexual exploitation and labor exploitation.

Confronting Child Poverty

Throughout Iceland’s history, the country has managed poverty rates well in comparison to other less developed islands. Prior to the financial crisis, Iceland held a relatively low poverty rate. According to a Statistics Iceland report, a total of 9% of the population was at risk of living in poverty in comparison to 16% in other nordic islands and the estimated 23% in the United Kingdom. While poverty existed in the country, it was certainly not as high as during or after the crisis.

Iceland has done tremendous work to repair its economy. The programs that Iceland’s government implemented provided support for many low-income families while also helping to boost its then damaged economy. Unfortunately, citizens who plummeted into poverty as a result of the economic downturn have struggled to find a way out. To combat this, the Icelandic government has implemented many methods of support for citizens facing these challenges. This includes lower-cost health care services, debt relief for mortgage holders and social services for low-income earning citizens. These policies have proven to provide much promise for a reduction in poverty overall in the country. The goal is that with a decrease in general poverty, the child poverty rates will also reduce in Iceland.

– Imani A. Smikle
Photo: Flickr

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Into the Unknown: US-Chinese Relations in the Era of COVID-19

U.S. and ChinaCOVID-19 has brought nearly all facets of normal life and governance to a screeching halt. On all fronts, from the economy to the military, the coronavirus has changed the way this planet runs. One area that has been heavily affected by the pandemic but does not get as much attention is international relations.

Diplomatic relations between countries is one of the toughest areas of government. It has become even more difficult to fully engage in with the onset of COVID-19. With more states turning to domestic engagement, the status quo of international relations has been shaken. In no foreign relationship is this more clear than that between the United States of America and the People’s Republic of China.

U.S.-China Diplomatic Relations

Current diplomatic relations between the U.S. and China were established under President Richard Nixon in 1972. Since then, the relationship between the two countries has experienced highs and lows. In 2020, it is nearly at an all-time low. The hostile status of this relationship now mainly stems from the ascension of President Xi Jinping of China to power in 2013, and the election of the U.S. President Donald Trump in 2016.

Under these two leaders, U.S.-Chinese relations have greatly diminished over the last four years. A rise in nationalism and “America First” policies under President Trump’s administration has alienated the Chinese amidst constant public attacks on the ‘authoritarianism’ of Jinping’s government. For example, China’s encroachment on Hong Kong’s autonomy over the last two years has been the subject of extensive international condemnation, particularly from President Trump and the United States. In addition, the two countries have been engaged in a high-profile trade war since the beginning of 2018.

More recently, a dramatic escalation in the deteriorating relationship between the two countries was taken in July 2020, when the U.S. ordered the closing of the Chinese consulate in Houston, Texas, on the basis of technological-espionage on China’s part. In retaliation, China ordered the American consulate in the city of Chengdu to close as well. Another significant strain on the diplomatic relations between the U.S. and China is COVID-19.

The Outbreak of the Coronavirus

Since the outbreak of coronavirus began in Wuhan, China, in December 2019, more than 4,600 people have died in China, over a period of nearly nine months. In the same amount of time, almost 180,000 people have died in the U.S. The U.S. government has consistently blamed the Chinese for failing to contain the virus. China has firmly denied these accusations. COVID-19 has seriously damaged the economic and healthcare systems of both the U.S. and China. Both systems have lost nearly all economic gains they’ve made since the 2008-2010 recession. While state economies around the globe also suffer, the decline of the economies of these two specific countries has far-reaching implications. Not only is the global economy in danger, but military alliances and foreign aid are as well.

Global Economy

Nearly every nation on earth has some kind of economic partnership with either the U.S., China or both. For example, the United Arab Emirates has been an ally of the U.S. since 1974, but in recent years has engaged in a pivotal economic partnership with China. Continued threats of tariffs and pulling out of trade agreements threaten the balance of these partnerships. These threats could force smaller nations to choose sides between the U.S. and China, should this confrontation escalate.

Military Alliances

While the U.S. enjoys a military advantage over China, China has allied itself with many of America’s adversaries, such as Russia, Iran and North Korea. These alliances have been solidified in recent years, for example, just before the coronavirus broke out in China in December 2019, China, Russia and Iran conducted nearly a week-long military exercise in the Gulf of Oman, a strategic waterway for oil tankers. An American confrontation with any one of these countries could draw China into the conflict, which could spell disaster for the world order.

International Aid

As part of China’s “charm offensive” in the early 2000s, the country began to heavily invest in the reconstruction of the economies and infrastructure in impoverished African states. In exchange, China received rights to natural resources such as oil in these countries. The U.S. also maintains a high level of foreign assistance in Africa. COVID-19 forces the U.S. and China to put more of their respective resources toward rebuilding their own economies. However, the aid they both provide to developing states worldwide diminishes at a time when those states need it most.

It is clear that even before the coronavirus spread to all corners of the globe, the turbulent relationship between the U.S. and China was advancing toward a breaking point. The pandemic has, to some extent, halted the diminishing state of relations between the two countries. However, any further provocations similar to the closing of the consulates in Houston and Chengdu could result in a catastrophe. The impacts of this relationship extend beyond the U.S. and China; they affect nations that heavily depend on the aid they receive from both powers.

– Alexander Poran
Photo: Pixabay