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Archive for category: Economy

Information and stories about economy.

Economy, Global Poverty

Six Facts About Poverty in Serbia

Poverty in Serbia
In recent years, poverty in Serbia affected astounding rates of unemployment despite reasonably high levels of development. The country faces unique geographic and economic difficulties that make poverty reduction especially difficult.

Top Six Facts about Poverty in Serbia:

  1. One in four people in Serbia lives below the poverty line, making it the poorest country in Europe. However, poverty statistics alone do little to illustrate Serbia’s complex problems that make destitution so prevalent. Many external and internal factors, some of which are uncontrollable, heavily contribute to poverty in Serbia.
  2. In 2014, Serbia’s population and economy took a massive hit. In May of that year, flooding caused serious damage within Serbia — many towns were destroyed and thousands of people displaced. The Serbian government estimated the total damage at 1.5 billion euros. The GDP growth rate decreased 4.4% to an alarming negative 1.8%. While those numbers have since begun to increase, there’s no getting around that such a devastating event will take years to recover from.
  3. The areas hit hardest by the natural disaster — small southern towns and rural regions — had the highest incidence of poverty before the flood. These areas are dependent on smallholder farming and often have less access to education than major cities. In 2014, the southeastern region of Serbia had poverty rates close to four times higher than those in Belgrade, the nation’s capital city.
  4. Unemployment remains a huge problem in Serbia, with a reported 1 in 5 people unemployed and half of the country’s youths jobless. The United Nation’s report suggests that much of the potential workforce is unequipped to participate in the economy due to a lack of education.
  5. Despite persistently high rates of corruption in the entire Balkan Peninsula, Freedom House has rated Serbia a highly democratic and free nation, which gives hope for the future. As a result of the improvements made by the government to encourage democracy and freedom, Serbia has begun negotiations to join the European Union. Membership to the E.U. is a major developmental goal for the Serbian coalition government.
  6. Even though Serbia recently faced a massive economic setback, The World Bank has a positive outlook for the nation’s economy. Likewise, the United Nations Development Programme (UNDP) sees the current government as demonstrating a strong commitment to economic transformation to eliminate poverty in Serbia.

These six facts about poverty in Serbia are not exhaustive, nor are they a tell-all of the conditions within the Balkan country. Even with relatively little aid from international groups and extremely costly natural disasters, Serbia has shown some real progress in recent political and economic development. Joining the E.U. may give the Serbian government the resources it needs to adequately address issues of poverty and unemployment.

– John English

Photo: Flickr

September 16, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-09-16 01:30:312024-05-27 23:53:02Six Facts About Poverty in Serbia
Development, Economy, Global Poverty

10 Facts About Poverty in Uzbekistan

Poverty in Uzbekistan

Uzbekistan, formally known as the Republic of Uzbekistan, is a landlocked country in Central Asia. It is widely recognized for its beautiful mosques, stunning historical architecture and vibrant cultural heritage. The country has a rich history as a key stop along the ancient Silk Road, which has left a lasting legacy in its cities, such as Samarkand, Bukhara and Khiva.

Poverty in Uzbekistan is dropping. Though rarely making headlines, the country has seen sustained economic growth in the past several years. This progress is attributed to various reforms and investments aimed at modernizing the economy and improving living standards. If trends continue, Uzbekistan is expected to become a successful, developed country free from extreme poverty in the near future. Below are 10 facts about poverty in Uzbekistan and the progress made to alleviate it.

  1. In 2023, 11% of the population of approximately 36.5 million lived below the national poverty line, a drop from 14.1% in 2013.
  2. While Uzbekistan has experienced increased urbanization in recent years, 75% of those living in extreme poverty in Uzbekistan still live in rural areas. The International Fund for Agricultural Development (IFAD) has been working to reduce poverty in rural Uzbekistan. Its four projects in the country aim to increase rural prosperity sustainably and have impacted more than 98,000 households.
  3. Child health remains a hurdle to overcome, with 13 out of every 1,000 babies dying before their fifth birthday. In comparison, only six babies die in the first year of life on average in the United States (U.S.).
  4. Poverty in Uzbekistan is contradicted by the overall economic growth of about 5.9% in the last decade.
  5. In 2011, the World Bank reclassified Uzbekistan from a low-income country to a lower-middle-income country, which indicates that the country is making sustained progress toward development.
  6. Between 2001 and 2013, real wages doubled as job prospects improved.
  7. Literacy rate, often a prerequisite for growth and poverty reduction, has risen to 100% as of 2022.
  8. Foreign trade has quadrupled in the past 15 years, helping to improve household incomes across the country.
  9. Currently, Uzbekistan is the World Bank’s third-largest client in Europe and Central Asia. The World Bank has 27 projects in the country, all of which aim to improve Uzbekistan’s agricultural sector, energy, transport, health, education, water supply and sanitation. The projects also aim to improve both urban and rural infrastructure.
  10. To further reduce poverty and improve living conditions, Uzbekistan has set a goal of becoming an industrialized, upper-middle-income country by 2030. It aims to achieve this goal by modernizing its agricultural sector, reducing its ownership of state-owned assets and enterprises and addressing restraints in the financial markets.

With steady growth and economic improvements, Uzbekistan has positioned itself to become a successful, developed nation in the near future. As these improvements continue, poverty in Uzbekistan is anticipated to decline and living standards will significantly improve across the country.

– Sara Christensen

Photo: Flickr
Updated: June 06, 2024

September 10, 2016
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Economy, Global Poverty

Five Ways Poverty Hinders Economic Growth

Poverty hinders economic growth
Efforts to reduce global poverty have been largely successful over the past few years. However one of the highest costs is that poverty hinders economic growth. It is a preventable burden that has solutions.

Here are five facts from around the world on how poverty hinders economic growth and what you can do to help reduce global poverty:

1. The effects of poverty cost U.K. citizens about 1,200 pounds per person every year.

According to the Guardian, 25 percent of health care spending is associated with treating conditions related to poverty; 20 percent of the U.K.’s education budget is spent on initiatives, like free school meals, to reduce the impact of poverty.

2. Child poverty reduces U.S. productivity and economic output by 1.3 percent of GDP each year, which costs the U.S. about $500 billion per year.

Economic hardship disproportionately affects children more than any other age group. The Center for American Progress believes impoverished children are more likely to have low earnings as adults and are somewhat more likely to engage in crime.

This “reduced productive activity” generates a direct loss of goods and services to the U.S. economy.

3. Children living in poverty have higher dropout rates and absenteeism, which limits their employability.

The Council of State Governments Knowledge Center found that nearly 30 percent of poor children do not complete high school, which limits future economic success.

A more educated individual is more likely to participate in the job market, to have a job, to work more hours, to be paid more and less likely to be unemployed according to an Economic Policy Institute report from August 2013.

Countries may see a rise in economic productivity by ensuring that children from low-income backgrounds have equitable access and are motivated to stay in school.

4. Poverty increases the risk of poor health; it is a $7.6 billion burden on the Canadian health care system.

The link between poor health and poverty is undeniable; the World Health Organization (WHO) declares poverty as the single largest determinant of health.

Poverty increases the likelihood of developing conditions that are expensive to treat such as diabetes and cardiovascular disease. Therefore, reducing poverty not only cultivates a healthy economy but it can also create a physically healthier society.

5. Billions of people — especially women — remain offline.

Developing countries are paying the cost of poverty while missing out on the economic benefits of increased internet access.

Women and the Web, a study sponsored by Intel, reveals that bringing an additional 600 million women online would contribute at least $13-18 billion to annual GDP across the developing world.

Increasing internet access in developing countries would also increase participation in e-commerce and increase access to educational resources and health services.

Want to help in the global fight to end poverty?

Mobilizing your congressional leaders to endorse poverty-reducing legislation has a widespread impact on reducing the high cost of poverty. For example, the Digital GAP Act aims to bring affordable, first-time internet access for at least 1.5 billion people in developing countries by 2020 and would help to bridge the digital divide. This will greatly facilitate change and decrease the way that poverty hinders economic growth.

Please visit The Borgen Project’s action center for more information on how you can contact your congressional leaders and voice your support for innovative, poverty-reducing legislation.

– Daniela Sarabia

Photo: Pixabay

September 9, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-09-09 01:30:222024-05-27 23:53:07Five Ways Poverty Hinders Economic Growth
Economy, Global Poverty

UN Report Shows Malnutrition Hurts Ghana’s Economy

Ghana's EconomyA new report by the United Nations concluded that widespread child under-nutrition has taken a toll on Ghana’s economy. The report, The Cost of Hunger in Africa: Social and Economic Impact of Child Undernutrition in Ghana, found that the effects of hunger and stunting cost Ghana $2.6 billion dollars per year.

The report argues that Ghana’s government must make nutrition more of a priority in national development planning in order to improve food security.

Chronic malnutrition and stunting afflicts 19 percent of Ghana’s population and is responsible for 24 percent of all child mortality cases. Some areas face more hunger than others as 30 percent of children under five in Ghana’s northern region are stunted. Stunting occurs when adolescents are severely deprived of critical nutrients, such as proteins and minerals, while in the womb or during the first two years of life. According to the report, 37 percent of Ghana’s adult population suffered from stunting as children.

Malnutrition and stunting have significant long-term consequences on individual development and Ghana’s economy. Chronic health and food insecurity have resulted in higher health care expenses, additional burdens on the national education system and lower productivity by Ghana’s workforce.

The effects of stunting are also felt in Ghana’s educational system. Children who are underfed are more likely to miss, repeat classes and drop out of school. The report estimates that of the current working population aged 20 to 64, 72 percent of people who were stunted as a child completed primary school compared to 80 percent of those who were not stunted.

The report further says that repeating grades “increases the demand that the education system must meet, with the resulting costs in infrastructure, equipment, human resources and educational input.” In 2012, the 19,720 students who repeated a grade cost Ghana’s education system approximately $12.85 million.

Malnutrition also limits adults’ ability to work and contribute to Ghana’s economy. In manual work, such as agriculture, people affected by stunting lack the strength necessary to match the production and efficiency of individuals who are healthier. Non-manual workers who are stunted also produce less output because they received fewer years of schooling than people who were adequately nourished as children.

The U.N. recommends that the government invest more in nutrition policies and interventions to boost the overall health of Ghanaians. Better coordination among national agencies is necessary to create a more concerted approach to providing citizens with better nourishment.

The report notes that forging partnerships with private organizations and non-state actors will help the government “accelerate the development and implementation of malnutrition prevention strategies.”

Health officials can also raise more awareness about ways that people can improve their nutrition and health.

– Sam Turken

Photo: Flickr

September 5, 2016
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Economy, Global Poverty

Local Groups Develop Solutions to Combat Poverty in Italy

Poverty In Italy

Causes of Poverty in Italy

Poverty in Italy is on the rise as millions of Italians are unable to heat their homes and afford basic necessities. A recession, soaring unemployment and an increasing migrant population are the biggest contributors so far. In light of these conditions, Italians are working together to reduce poverty rates.

A post-war recession caused the number of people living in absolute and relative poverty to jump in 2012; southern regions were hit especially hard. Italy’s unemployment rate, like its economy, is slow to recover. Despite living in the third-largest economy in the eurozone, youths between 15-24 years of age are hit the hardest as approximately 40% are unemployed.

The Group of the Party of European Socialists (PES Group) in the Committee of the Regions (CoR) hopes to address this issue through the Giovanisi project in Tuscany. This project, which draws support from the European Union’s Structural Fund, includes initiatives to promote a right to study, vocational skills, entrepreneurship, support for housing and independent living as well as services related to well-being in the community.

Food Security

Food security is also an issue for many citizens. Of the 8.6 million impoverished people in Italy, about 16.6% of families live in poverty and cannot afford healthy meals. As a result, a family may go without meat once every two days. According to the Associated Press, Italy’s highest court ruled that stealing small amounts of food is no longer illegal for the country’s destitute and starving in May 2016.

Pope Francis recently visited the United Nations World Food Program (WFP) to address the need to end hunger. The pope called on U.N. member states to strengthen their commitment to serving and cooperating with WFP. “In this way, the World Food Program will not only be able to respond to emergencies but also implement sound and consistent projects and promote long-term development programs, as requested by each of the governments and in keeping with the needs of their peoples,” said the pope. Despite the lack of food security in Italy, the European nation was one of the top 25 donors to the WFP in 2015.

Migration into Italy

Italy has also seen a spike in the number of migrants. According to the Telegraph, “There are more than 130,000 migrants living in reception centers in Italy, waiting to hear if they will be granted asylum or expelled.” However, migrants have played a role in aiding police officers in the town of Caltanissetta, Sicily. According to The Local, officers struggled with providing support to the thousands of foreign visitors and migrants that pass through each year. Police Chief Diego Peruga approached the city’s mayor, Giovanni Ruvolo, about getting lessons for his officers. Ruvolo thought it would be beneficial if some of the city’s asylum seekers could teach a 30-hour basic English course for the police force; the asylum seekers were happy to volunteer as teachers. “It also provides them with the opportunity to give something back to the town which has welcomed them with open arms,” said Ruvolo.

There is still much work to be done to alleviate poverty in Italy — changes in the economy and unemployment cannot happen overnight. Thanks to these initiatives the country is getting on the right track.

– Veronica Ung-Kono

August 31, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-08-31 01:30:532024-06-11 02:48:19Local Groups Develop Solutions to Combat Poverty in Italy
Economy, Global Poverty

The Benefits of Conditional Cash Transfers in Latin America

Conditional Cash TransfersIn development assistance, there is always a hand that gives and a hand that takes away. Policymakers now face the fact that up to 20% of foreign aid administered by NGOs and government agencies can end up in the hands of corrupt local leaders. However, conditional cash transfers may be the solution.

A recent report by the Inter-American Development Bank suggests that conditional cash transfers offer a way out of this dilemma. This form of foreign aid offers cash grants to citizens in exchange for compliance. This could mean enrolling their children in school, completing regular medical exams, or attending job skills training.

In Latin America, where youth unemployment hovers around 14%, this means lower risks of radicalization. Roughly 60% of the young adults in this region work in the informal sector, where there are markedly low wages, no benefits and job insecurity.

When this occurs, many of those who might have been productive citizens turn to more lucrative (and illegal) activities. And so the conditions for terrorism flourish.

Conditional cash transfers (CCTs) for the poor in Latin America have posted consistent gains over the past 15 years. They provide money for nearly 129 million individuals of working and post-working age. In addition, some of the countries suffering from the harshest degrees of poverty are taking advantage.

UNICEF reports from 2008 found that in Paraguay, CCTs increased household per capita income by 31% while reducing food expenditure by four percent.

Child school attendance also rose, as beneficiary families were able to save 20% more than without assistance. UNICEF also reports that families enjoyed seven percent greater access to credit. Finally, they invested 45% more in agricultural production.

These are significant results for a country tackling one of the most corrupt and poverty-stricken parts of the continent. Home to radical groups such as Hezbollah and al-Qaeda, the tri-border area—between Paraguay, Brazil and Argentina—is a perfect case for why the United States should ramp up its aid to Latin America.

The endemic poverty in this area allows one to bribe a local security agent for $35 ($15 for Paraguayan officers), buy an AK-47 for $375, or solicit women under 23 years of age for as little as $15.

In this sort of environment, traditional aid projects for nutrition or housing are less effective.

Researchers from Transparency International reveal that in areas like the tri-border, local leaders inflate the amount of requested aid, inviting speculation by gangs and smugglers.

Much of the aid is then misused: corrupt leaders sell food surpluses for personal profit, award housing contracts under threat. In addition, other goods (such as prescription drugs) enter the tri-border $1.5 billion black markets.

Conditional Cash Transfers offer immunity from these abuses by requiring greater accountability from both local leaders and the community. Because they are cash benefits, municipal officials are unable to divert goods as “losses” or favor particular groups.

Instead, they ensure that valuable U.S. aid reaches the hands of those who need it most—citizens doing their part to break the cycle of poverty.

– Alfredo Cumerma

Photo: Flickr

August 25, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-08-25 01:30:372024-12-13 17:54:41The Benefits of Conditional Cash Transfers in Latin America
Economy, Global Poverty

Poverty in Russia: Unemployment is Low, but Poverty Remains High

Poverty in Russia
The Russian economy has taken more than its fair share of hits in recent years, with poverty in Russia affecting nearly 20 million Russian citizens.

The stagnation of Russia’s economy has its roots in the low oil prices in recent years, as well as sanctions imposed by the West. Russia produces the most crude oil in the world, and energy is by far Russia’s largest market. However, oil prices have dropped heavily since 2014, from around $100 per barrel to $50.

The effect on the Russian economy has been severe: the economy shrank 3.7 percent in 2015. The economic tightening has increased the inflation rate to 12.9 percent, reducing the purchasing power of Russian companies. This makes it significantly more difficult for other markets to fill the gap the declining oil industry has left.

The inflation rate also adds to the burdens of the working class, with rubles buying less nowadays than just a few years ago.

According to one Russian woman, “When you get home and unpack your shopping bag, you realize you have barely bought anything.”

Poverty in Russia is not located in large cities like Moscow and Saint Petersburg. The majority of Russia’s poor live in small, single-industry towns with declining populations.

The Kremlin itself, not exempt from the economic downturn, is currently operating at a severe budget deficit. This deficit makes it difficult for the Russian government to offer anything but lip service to the populace in regards to the decline.

Nonetheless, President Vladimir Putin’s approval ratings remain at an incredibly high 83 percent. Many Russians are faithful to Putin; when he took office in 2000, poverty was at a dangerously low 29 percent.

Furthermore, despite Russia’s current economic troubles, the country has seen significant economic improvement in the past 15 years.

Prior to 2014, Russia’s poverty rate had been dropping several percentage points every year since 2004. In addition, its GDP growth rate was on par with India until 2009.

Perhaps most encouraging is that despite the recession, Russia’s unemployment rate remains at a mere 6 percent. The low unemployment rate suggests that if oil prices stabilize, poverty in Russia will see a rapid decline.

– John English

Photo: Flickr

August 13, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-08-13 01:30:202024-12-13 17:54:40Poverty in Russia: Unemployment is Low, but Poverty Remains High
Development, Economy

Kenya: Model for African Nations in UN’s Blue Economy

Kenya_Economy“The New Frontier of African Renaissance” is the “blue economy,” according to the African Union. The United Nation’s Economic Commission for Africa (ECA) recently released a handbook on how Africa can make the most of its vast coastal and freshwater resources.

Out of 54 total countries in Africa, 38 are coastal, including the fastest growing economy on the continent, Kenya. Last year, Bloomberg ranked Kenya the third fastest growing economy in the world. The key to its success has been a strong blue exporting economy.

The backbone of Kenya’s private sector is its horticulture and tea industries, which are both export markets. Kenya not only produces the most black tea in the world, but it also exports the most. However, while neighboring nations like Tanzania produce more horticulture than Kenya, Kenya’s well-designed shipping infrastructure makes it a vastly superior exporter.

The economic trend visible in Kenya is that even when production is comparatively low, a streamlined exportation system can cause a big economic boom. The new handbook by the ECA explains how African nations can use their coastal status to promote long-term growth.

As in Kenya, the handbook emphasizes the blue economy involving shipping and other markets. The ECA calls for an update of maritime transportation to make Africa a center for global trade.

An overarching theme of the handbook is sustainability, particularly the use of hydroelectric power over petroleum or coal. As expected, Kenya mirrors the ECA’s suggestion, with 71 percent of national electricity coming from hydroelectric sources.

It will take a lot of work to make the handbook’s blue economy a reality. Countries with big shares of coastline like Eritrea and Somalia nonetheless trail far behind economically due to political instabilities in its region. Furthermore, the other African nation seeing major GDP growth, Nigeria, is heavily reliant on oil exports–the opposite of what the ECA suggests.

While the ECA cannot expect changes overnight, Executive Secretary Carlos Lopes is hopeful that Africa will benefit massively from a well run blue economy. According to Lopes, “If fully exploited and well managed, Africa’s Blue Economy can constitute a major source of wealth and catapult the continent’s fortunes.”

– John English

Photo: Flickr

August 12, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-08-12 01:30:072024-12-13 17:54:44Kenya: Model for African Nations in UN’s Blue Economy
Economy, Global Poverty

5 Things to Know About Poverty in Tajikistan

Poverty in Tajikistan

Poverty in Tajikistan remains a problem. Tajikistan is frequently cited as the poorest former Soviet republic, with one of the world’s lowest GDPs per capita (ranked 192). While it is a place that Americans do not hear about often, USAID has been busy in the country of just over eight million inhabitants for more than 20 years, almost as long as Tajikistan has been a sovereign nation.

 

Poverty in Tajikistan: Key Facts

 

1. Proportional to GDP, Tajikistan has one of the largest remittance economies in the world.

Due to a scarcity of secure employment opportunities, which contributes greatly to poverty in Tajikistan, more than one million Tajik citizens leave the country searching for work. The money that these Tajiks send home equals more than half of the entire country’s GDP. The vast majority of these migrants—90 percent—travel to Russia.

2. Poor infrastructure stagnates the Tajik economy.

Tajikistan is landlocked and sits in the northwestern Himalayas, one of the most mountainous regions on the planet, making transportation a challenge. Trade with other nations, which is important to the country’s economy, relies on a dilapidated railway system. The diminutive electricity market means energy infrastructure is also lacking. Power shortages and outages are rampant, especially during the winter.

The future for Tajikistan’s infrastructure may, however, be looking up due to foreign investment, which may alleviate some of the poverty in Tajikistan. Recently, Chinese investors funded new road construction in Dushanbe, the capital. Russia and Iran have also invested in hydroelectric plants, including a dam on the Vakhsh River that may become the world’s largest.

3. Tuberculosis is a growing public health problem.

Multi-drug resistant tuberculosis (MDR-TB) is disproportionately high in many central Asian countries, including Tajikistan. The country’s healthcare system is ill equipped to respond to this issue, lacking adequate information systems and human resources. Most funds for fighting TB come from international assistance.

MDR-TB is a complicated public health challenge, however, the World Health Organization (WHO) has partnered with the government and aid groups to improve and monitor Tajikistan’s ability to treat TB and stave off MDR-TB.

4. Most of the population does not have access to clean water.

Nearly 60 percent of Tajik citizens rely on unsanitary water supplies. Many depend on irrigation ditches for drinking water, meaning waterborne diseases are common. Diarrhea is the sixth leading cause of death in children under five.

While these statistics may seem bleak, water quality is a relatively straightforward issue to tackle. USAID has made notable strides in providing better access to clean water, one of its main focuses in Tajikistan. According to its website, USAID has “established 56 community-level water users’ associations,” helping the Tajik weather and water forecasting agency better manage the country’s vast supply of fresh water.

5. The civil war destroyed one out of five schools in the country.

Funding for education decreased drastically after Tajikistan became independent from the Soviet Union in 1992. The following five years of fighting destroyed or damaged a significant portion of the country’s schools. Naturally, such collateral destruction has contributed to the precarious state of the education system.

Since the fighting, the country has either struggled to or failed to revive school systems. According to the latest reports from UNICEF, schools are overcrowded, underfunded and understaffed, with many teachers working triple shifts. Furthermore, dropout rates are high, especially for girls.

The state of Tajikistan’s education system leaves much to be desired. However, organizations like USAID and UNICEF have partnered with the Tajik government. They are determined to nurture this fragile system to a point where it can sustain itself, mainly by focusing on preventing dropouts and improving equity and access.

In many ways, Tajikistan seems to lag behind its neighbors in the Central Asian region. With a strong memory of war and political upheaval, coupled with uncompromising geography, the country has struggled to develop.

But international aid organizations have shown great ambition and, partnered with the Tajik government, achieved tangible successes in reducing poverty in Tajikistan and its burdens. Likewise, international investment from the private sector suggests promise and hope for a society that has much to gain.

– Charlie Tomb

Photo: Pixabay

August 11, 2016
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2016-08-11 01:30:262024-12-13 17:54:555 Things to Know About Poverty in Tajikistan
Economy, Food & Hunger, Global Poverty

8 Facts About Poverty in Jamaica

Poverty in Jamaica Poverty rate
Jamaica has struggled with poverty, unemployment and crime for the past half century, but the nation has recently seen ambitious government economic policies bear fruit. Discussed below are the leading facts about poverty in Jamaica and their implications.

8 Facts about Poverty in Jamaica

  1. Jamaica is not in extreme poverty and is regarded as a middle income country. For comparison, Jamaica has about 1/20th the GDP per capita of the United States, but a four-times-higher GDP per capita than the nearby country Haiti.
  2. Since the 1970s and 80s, Jamaica has experienced serious problems with poverty and unemployment. Through the 90s, unemployment remained around 15 percent, with poverty above 25 percent. The unemployment rate is currently 14 percent and poverty is 16 percent.
  3. A serious hindrance to Jamaica’s development has been slow rates of economic growth. In the past 30 years, Jamaica has had an average annual GDP growth rate of less than one percent. The slow growth rate is a major cause of persistent poverty in Jamaica.
  4. Relationships between Jamaican officials and crime groups cause widespread corruption, which results in many of Jamaica’s problems. The corruption not only hurts law abiding Jamaican citizens, but makes foreign investors far more hesitant to get involved in Jamaican industry.
  5. Public education in Jamaica is not entirely free. There is a registration fee and other school expenses that are not covered by the government. As a result, many of the nation’s most poor children are not able to attend school.
  6. Jamaica jumped 27 places in the 2015 Doing Business ranking, as the Jamaican government has improved its credit rating and decreased the national debt. It is hoped that the improved ranking will increase investment and alleviate poverty in Jamaica.
  7. The World Bank has a positive outlook for Jamaica’s economy, with forecasts of the country’s GDP growth rate climbing to over two percent in 2017.
  8. The Jamaican Government is currently working with the UNDP and the European Union to alleviate poverty on both a macro and micro level. Poverty alleviation and achievement of Millennium Development Goals remains a top priority for the Jamaican government.

Despite Jamaica’s history of poverty and some ongoing problems, economic forecasts for the country remain optimistic. It is possible that Jamaica will experience an economic resurgence and alleviate problems of unemployment and poverty in coming years.

– John English

Photo: Pixabay

August 6, 2016
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