African Development Bank Group’s Global Strategies

A large part of poverty strategies is implementing some kind of spur in economic growth. This kick-start can be a gateway to social and economic reform in some of the poorest countries in the world, eventually leading to self-sustainability. The African Development Bank Group has made it their mission to place poverty reduction back into the hands of Africans and to create a stimulus that can enable the extremely poor in reducing their poverty scores.

The African Development Bank Group was born out of three different economic groups in Africa. It has set a plan that began in 2013, targeted to reach major benchmarks by 2022. The group has recognized that Africa has begun a transformative journey and progressed greatly over the last decade, yet this progress remains markedly uneven in some areas of the continent. This particular organization relies on a few major objectives to help lift regional member countries out of poverty, while staying congruent with ideals and values. The group first aids by mobilizing and allocating a country’s resources, then provides advice and guidance on technical aspects for development efforts. The African Development Bank Group has also laid out 17 sustainable development goals in order to achieve its mission. These goals include food security measures, sanitation, healthcare, sustainable energy use and procurement, social equality across gender and age gaps, economic growth and stability and ecological preservation plans.

The holistic approach to poverty reduction through economic growth and sustainability is what sets apart the African Development Bank Group. While taking advantage of models such as the World Bank and Multilateral Development Banks, The African Development Bank Group is able to remain primarily domestically-reliant and position itself in such a way as to gain more traction as the 2022 goal nears. Balance sheet optimizations have been a key focus in doing so, as projects continue to be carried out in both the private and public sectors through multilateral funds involving developed countries. The group’s procurement procedures – unlike other bank methods – involve strict standards. These include investments in member countries whose approval processes ensure that procurements are in line with the values and mission of The African Development Bank Group.

– Casey Hess

Photo: Flickr

How to Help People in Brunei

Brunei is a small nation located in the northern coastal area of the island of Borneo, which also encompasses parts of Malaysia and Indonesia. Brunei’s territory extends itself through an area of 5,765 kilometers of land, where about 423,000 citizens live.

How to help people in Brunei is not an easy question to answer at first glance. The fact is that despite its size, Brunei’s economy is considered to be one of the best performing in the world.

The country mainly exports liquefied gas and crude oil across the globe; natural gas and petroleum represent 60 percent of the country’s economy. Brunei’s extended forest territory allows it to produce abundant amounts of non-renewable resources and energy.

In spite of Brunei’s level of productivity, the issue of how to help people in Brunei remains because, despite the country’s great wealth, the social and political system causes difficulty for Brunei’s citizens.

As an absolute monarchy led by Sultan Hassanal Bolkiah, freedom of speech has been limited within the media, including radio, television, and print, as well as for citizens.

In 2014, Brunei adopted sharia law, a list of laws based on the religion of Islam. Consisting of three phases, two of which have to be yet implemented, sharia law is currently enforced among Brunei’s citizens.

The only approved phase for the moment includes prison sentences for what most developed first world countries would consider minor. Pregnancy outside marriage, failing to attend Friday prayers, propagating religion other than Islam, among other offenses, are severely punished with prison sentences or fines.

Organizations such as the United Nations have spoken out regarding Bolkiah’s intentions, but despite commenting on the sultan’s ideas for the future of Brunei, the country remains part of the United Nations due to providing free medical care, education and more to its citizens.

Boycotts of the Beverly Hills Hotel and other properties that Bolkiah owns have been enacted by numerous international companies to put pressure on the sultan to repeal sharia law. Celebrities such as Ellen DeGeneres and Elton John have taken up the issue to bring awareness to the inequality and discrimination that is currently taking place in Brunei.

How to help people in Brunei is a social issue rather than an economic one. Brunei is a country that violates human rights every day and no organizations are actively fighting against it. The imposition of sharia law in Brunei is continuous and awareness is key in order to eradicate such human rights violations.

– Paula Gibson

Photo: Flickr

How to Help People in Dominica

The Commonwealth of Dominica, a small island nation, is one of the poorest countries in the Caribbean. While other Caribbean nations have moderately successful tourist industries, Dominica’s tourism has decreased in recent years along with its economic growth. Dependence on a failing banana industry has further exacerbated the country’s poverty; therefore, it is necessary to help people in Dominica reinvent their economy.

As recently as the 1990s, Dominica supported itself through banana farming, which was well suited to the country’s tropical environment. While banana-centric agriculture was reliable and productive, economic specialization proved to be a kiss of death for Dominica’s economy in a changing trade landscape. When global tariffs on American-grown bananas were lifted in 2008, Dominican farmers simply could not compete with the low prices offered by American companies.

While the revenue generated by banana exports once supported nearly 2,000 Dominican farmers, only about 700 struggling banana farmers remain. Dominica’s unemployment rate sits at a staggering 23 percent, having decreased only 2 percent over the last decade.

Dominica’s economic hard times have impacted the lives of its citizens. 40 percent of Dominica’s population lives in poverty. Since the fall of the banana industry, Dominicans have left the country in droves, seeking employment. The exodus has been so significant that remittance payments from emigrant family members account for 16 percent of Dominica’s GDP.

The Dominican government has promoted economic diversification in the attempt to resurrect the economy and provide more jobs for Dominican citizens. Another Caribbean nation, Antigua and Barbuda, set the example for a diversified economy after the decline of its sugar cane industry. By embracing tourism and online gaming, as well as construction, Antigua and Barbuda saw significant financial benefits. Unfortunately, Dominica has not yet successfully diversified. The tourism industry in Dominica is still meager compared to that of other Caribbean nations, and other agricultural exports, like coffee, fruit and flowers, have not replaced the lucrative banana.

In addition to monetary problems, water sanitation issues and resulting diseases plague Dominica’s inhabitants. 37 percent of Dominicans do not have access to clean water. Unsanitary water increases the incidence of diseases such as typhoid fever, which has increased in Dominica by nearly 40 percent since 1990.Though Dominica’s government created a water and sewage management company in 1989 (The Dominica Water and Sewage Company), Dominica still relies on foreign grants for infrastructural maintenance.

Changes in trade policy would greatly help people in Dominica. The reimplementation of tariffs on U.S. produce would make it easier for Dominican farmers to sell their bananas on the global market. Fair trade organizations, such as the Windward Islands Farmers Association, have helped banana farmers access profitable trading opportunities, so buying fair trade Dominican bananas supports the livelihood of Dominican farmers. However, further assistance is needed.

The EU is Dominica’s most significant donor, though China also contributes aid. If Dominica is going to be successful, more wealthy countries such as the U.S. should provide aid programs or create legislation to strengthen infrastructure, reenergize and diversify the economy, and help people in Dominica live free from poverty.

– Mary Efird
Photo: Flickr

Why is Cabo Verde Poor?

Cabo Verde, or Cape Verde, is a former Portuguese colony made up of ten islands and five islets located just over 300 miles off Africa’s west coast. Why is Cabo Verde poor? Severe droughts during the 1900s killed 200,000 people and caused many to leave the islands.

Cabo Verde does not have many natural resources, and only ten percent of the land can sustain crops. This makes the nation vulnerable to poor economic growth. Although the poverty rate has been reduced significantly, one quarter of the population is still poor.

The national poverty rate in Cabo Verde fell from 37 percent to 27 percent between 2003 and 2008, according to the World Bank, and the extreme poverty rate went from 21 percent to 12 percent.

Tourism is a major source of economic growth in Cabo Verde and is credited as the main reason for the drop in poverty rates. Still, one is compelled to ask: why is Cabo Verde poor?

The Congressional Research Service reported that slow economic growth in Europe has fostered slow growth in Cabo Verde. This is because Europe is a major trading partner and source of foreign investment, and Cabo Verde is also a major tourist destination for many Europeans.

Despite all this, growth has recovered due to a resurgence in tourism and foreign investment. Gross domestic product grew from .93 percent to 3.63 percent between 2012 and 2016. Unemployment is now estimated to be at nine percent, which is a significant drop from 16.8 percent in 2012. Yet, one must still ask: why is Cabo Verde poor?

Public debt in Cabo Verde was 130 percent of the GDP at the end of 2016, according to the World Bank. It is also estimated that growth was above four percent which is 1.5 percent more than in 2015 but still not enough to bring down debt levels. The World Bank predicts that debt will continue to increase in 2017 because of a state-owned airline (TACV) and social housing.

Modest growth is predicted for Cabo Verde’s major trading partners which may slow foreign investment in the small nation as well.

– Fernando Vazquez
Photo: Flickr

Why is Papua New Guinea Poor?

Papua New Guinea, the name given to a group of islands situated in the southwest Pacific ocean, has experienced tremendous economic growth since its days of being an Australian colony, and has gone on to hold elections involving the indigenous population. Despite this, however, many people on the island still experience extremes of poverty. 80 percent of Papua New Guinea’s people live in rural communities with little to no modern conveniences, and 39.9 percent of the population lives below the poverty line. So, why is Papua New Guinea poor, despite economic growth? Here’s a brief look at some of the reasons behind this.

Why is Papua New Guinea Poor? 3 Simple Reasons

Income inequality
In 1996, the Gini index rated Papua New Guinea’s income inequality as 55.43 on its scale from 0-1, with 0 being perfectly equal (for comparison, the U.S. was rated around 45 on the scale in 2007). The evidence would seem to suggest that this inequality is due to the failure of economic growth to keep up with population growth, but could also have been caused by structural adjustment policies that came about along with rapid economic growth. Whatever the reason, it is clear that income equality has led to much greater poverty within Papua New Guinea. The good news is that this inequality has gone down significantly since the 1990s: In 2009, Papua New Guinea scored a 43.88 on the Gini scale.

Lack of long-term planning
Many citizens are critical of the fact that the government of Papua New Guinea has had little to no plan in place to modernize the country, which would include steps like building permanent houses, supplying water and sanitation and building infrastructure. The government, instead, acts reactively, creating short-term solutions only when it is absolutely necessary. For example, in 2002, Papua New Guinea faced an incredibly violent and chaotic election, but it was not until 2004 that police were deployed to fight this rampant violence. This lack of planning makes it difficult for real progress to be made in terms of poverty.

Corruption
Why is Papua New Guinea poor? Perhaps the biggest contributor to Papua New Guinea’s continuing poverty problem is the fact that so many government officials, in charge of funds that could help, have historically chosen to pocket the money instead. Michael Somare, prime minister of Papua New Guinea from 1975 to 2011, faced charges of political misconduct and misappropriation of funds spanning over 20 years, while in 2014, Paul Tiensten, former senior minister and later MP, was sentenced to nine years imprisonment for misappropriating over $1 million. Somare’s replacement as prime minister, Peter O’Neill, has also been accused of political misconduct involving a loan of $1.3 billion.

So, why is Papua New Guinea poor? In short, because of income inequality, aggravated by years of poor planning and corruption by the government. To correct this problem, new measures will need to be taken to outline and enforce government oversight and the proper use of government funds. Thankfully, awareness has risen about these issues over the past few years. During the last election, many people in Papua New Guinea protested and called for Peter O’Neill to resign after more corruption allegations were brought to light. And while O’Neill still won re-election, the fact that these protests exist shows that the citizens of Papua New Guinea are beginning to demand more from their politicians, hopefully a first step in strengthening the government and using it to enact real change.

– Audrey Palzkill

Photo: Flickr