Southeast Asia has been reducing its poverty level as a whole for the past decade. However, the rise of automation has now put the population back at risk. One of the largest industries in terms of employment in Southeast Asia is the production and manufacturing industry. The most common type of work found in this region is in small factories. These jobs are some of the most vulnerable to the effects of automation in Southeast Asia.

Affected Industries

Automation is the process by which labor or a job that is performed by a human switches to being done by a machine. In many cases, a robot is able to work faster and more efficiently than a person with the added bonus of not having a salary and never needing time off. Thus, the prospect of a workforce full of machines is very appealing to those looking to lower their labor costs.

Automation in Southeast Asia stands to put a large number of laborers out of work. The International Labor Organization reported that 73% of Thailand’s manufacturing workforce are at high risk of having their jobs automated. On a whole, the ASEAN-5 (Cambodia, Indonesia, the Philippines, Thailand and Vietnam) faces a 56% risk for employment being automated in the next two decades. The majority of workers affected will be those with both lower wages and lower levels of education. These are the types of jobs easiest to automate, which renders these workers as the most severely impacted demographic.

Further, the types of jobs created through automation, like machine operation and maintenance, require skills the lesser educated workers replaced by automation lack. In Vietnam, those with only a primary school education are three times more likely to have their job automated than someone with a secondary degree.

The Transition

These countries face an interesting problem. Through automation, they stand to gain much in the way of foreign investments and business. Southeast Asia has become a hub of global production, which provides many economic benefits. On the other hand, automation puts the lives of the working-class people in these countries in serious danger. Several countries in Southeast Asia have proposed new ideas to try and navigate through this transition.

The Indonesian Minister of Finance has proposed the implementation of a universal basic income. This has the possibility of alleviating the stress caused by job loss. The Government of Thailand has approved a tax incentive to boost automation within the country. The proposition aims to bring in foreign investors that would train Thai workers and create employment opportunities.

Conclusion

A smooth transition to automation will be crucial in keeping much of the population of Southeast Asia above the poverty line. It is fundamental to support workers in the age of automation in Southeast Asia. Most importantly, they need access to higher levels of education. Hopefully this issue will encourage these governments to provide more opportunities and training to their citizens. People can continue to work in meaningful ways in the age of automation through adequate aid.

Jackson Bramhall
Photo: Flickr

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

Livelihoods in Brunei are ImprovingBrunei is an independent Islamic sultanate on the northern coast of the island of Borneo in Southeast Asia. Some statistics about the country still remain unknown like the percentage of Bruneians that live in poverty. This is due to the fact that Brunei still does not have a poverty line as of 2018. However, one can use other means to measure Brunei’s poverty. Additionally, other data can help ascertain whether or not livelihoods in Brunei are improving their unquantified impoverished situations.

One way to look at this is the Economic Freedom Index Score (EFIS). One can think of this as Bruneians’ freedom of choice as well as their ability to acquire and use goods. Brunei’s EFIS is 66.6, and it ranks 61 out of 180 countries. Singapore, the top country, comes in at 89.4, making it the world’s most free economy in the 2020 Index. Then there is North Korea, the bottom country, which has a score of 4.2. Despite Brunei’s moderate EFIS score, the country is working to boost that number. Here are three ways livelihoods in Brunei are improving.

1. Self-Empowerment Initiatives

His Majesty Sultan Haji Hassanal Bolkiah says Brunei has drafted “self-empowerment initiatives” to create more job and entrepreneurship freedoms. Oil and gas production supply 90% of government revenue and 90% of exports. However, these industries have limited job opportunities.

Now, the country strives for economic diversification to reduce reliance on oil and gas. To support these endeavors, the administration will simplify the processes to start a business and develop business regulations. The most significant changes were amending certain laws allowing businesses and investors to operate without a license and reducing the wait times for a business to open.

2. Employment

Unemployment rates — regardless of education level — are high. Although, Bruneians with a vocational background have the highest rates of unemployment. The youth are also at risk of higher rates of unemployment. According to the International Monetary Fund (IMF), the unemployment rate among young Brunei increased from 25.3% to 28.9% in 2019 — the Association of Southeast Asian Nations (ASEAN) was the highest percentage.

A suggestion from the IMF is to invest in technology and digitalization to capitalize on the tech-savvy generation. Also, the Manpower Planning Council is setting up a labor-management information system to lower unemployment among college graduates. This will be a cooperation between government agencies, the private sector and education institutions to ensure the turnout of employable graduates.

3. Welfare

The Sultan also says that people’s welfare is of utmost importance. This assertion stems from taqwa, the basic Islamic principle of God-consciousness together with brotherhood, equality, fairness and justice. This concept is the basis of true Islamic societies.

With this in mind, livelihoods in Brunei are improving by adjusting the financial aid requirements. This effort attempts to lift benefit recipients out of poverty and continue to provide assistance to citizens who need it. With these new rules, the government will be able to map welfare recipients and learn where there is a need to advance workforce skills and job opportunities. The implementation of this new system is more important than ever before due to COVID-19 and an expected increase of benefit recipients. Now, however, Brunei authorities can better prepare themselves to leave no one behind, per taqwa.

Overall, livelihoods in Brunei are improving. The administration has focused itself on economic diversification to be less reliant on oil and gas. The unemployment rate has increased, but the country is undergoing steps to combat that with education and jobs. Also, Brunei is updating welfare programs to include further applicant information. This will assist in financial help as well as learning where education or job options are a factor in poverty.

These changes could create a cycle of prosperity and bring more Bruneians out of poverty. However, Brunei needs to create a poverty line. That way, it can more accurately assess its poverty situation and how much progress it still needs.

Heather Babka
Photo: Flickr

DouglaPrieta Works
In many cases of migration, dangers from gangs and community violence force people to leave their homes. Migrants also tend to flee because of economic challenges and persecution. A few women in Mexico who were part of these forced removals did not want to move to a new country. It was important for these women to stay where their families, cultures and traditions existed despite difficulties like finding sustainable jobs in Mexico. As a result, they decided to move to Agua Prieta, Mexico and become a part of the family at DouglaPrieta Works.

The Beginning

DouglaPrieta Work is a self-help organization that women founded to help the poor. Specifically, the founders had the dream of procuring the means to stay in their home country through the creation of a self-sufficiency co-op. To fund this, the women sell handmade goods such as reusable bags, earrings, winter accessories, dolls and more. They sell these beautiful crafts throughout Agua Prieta, neighboring cities and even in the United States. Their efforts all center back to the main goal of promoting “a mutual-aid ethic among community members, with the goal of economic self-sufficiency.”

How it Works

The first step in economic security is education. The women at DouglaPrieta Works understand this and all self-teach. They work together to learn how to sew, knit, craft, cook and read. The women utilize these skills to then sustain themselves, their families and the co-op. To further support themselves, the group incorporated a farm next to their co-op. They use the fruits and vegetables they grow for cooking. The women encourage sustainable food security through culturally-appropriate foods based on the needs of the people in their community. The group also built a woodshop to craft furniture for the community to maximize the benefits of their surrounding resources. The co-op does not exclude the children in all of this work either. Oftentimes, their children learn the skills along with them and work with each other in school.

Actions

In 2019, they led an initiative where people in their town could donate canned goods and receive a handmade reusable bag in return. This program allowed the women of DouglaPrieta Works able to donate hundreds of canned goods to those in need. Additionally, they were able to provide reusable bags to the community in order to encourage limited plastic bag use to better the environment.

DouglaPrieta Works often provides migrants working at its co-op with funds to help them and their families survive the journey of migration. There is a nearby migrant shelter in Agua Prieta, C.A.M.E, to house the travelers. While at the co-op, many migrants work in the woodshop at AguaPrieta Works in exchange for meals, funds and friendship.

Students and groups interested in learning about the U.S./Mexico border are welcome to join the women at DouglaPrieta Works for a meal, as the women provide stories and information about the border. The power of education and inclusivity is a core value at DouglaPrieta Works.

Helping Out

Overall, incredible work is occurring in the town of Agua Prieta, Mexico. These women are sustaining themselves to stay in the country they call home and they are providing food, resources and work for migrants. Their children are able to learn and grow together, as well as eat healthy, organic meals from the garden. To learn more about the co-op, visit its website.

Naomi Schmeck
Photo: Flickr

Disability and Poverty in Argentina. Little girl with long brown hair and wearing an orange sweater.
Argentina has taken steps to address employment discrimination, access to transportation and access to quality education for people with disabilities, factors that have historically contributed to a correlation between disability and poverty in Argentina.

According to estimates based on census data from 2010, around 5 million Argentines have a disability and the unemployment rate for people with disabilities in Argentina stood at 91% in 2004. Additionally, the United Nations has reported that youth with disabilities are far more likely to fall at or below the poverty line in comparison to those who do not have disabilities. However, recent action from the government is beginning to address the link between disability and poverty in Argentina.

Addressing Employment Discrimination 

In Argentina, people have often seen those with disabilities as “objects of charity” rather than productive members of society entitled to the same opportunities and responsibilities as anyone else. These views have inhibited disabled people’s ability to acquire employment and earn living wages for their work. A shift away from this perception of people with disabilities began during the 1970s and in 1981, the Argentine government agreed to approve an employment quota requiring that disabled people hold 4% of federal government jobs. Additionally, in 1988, the legislature passed an anti-discrimination law to help protect disabled Argentines from discriminatory practices. However, due to a lack of enforcement and regulation of such laws, the correlation between disability and poverty in Argentina has persisted for decades.

A significant step toward helping disabled Argentines obtain equal employment has come with Argentina’s ratification of the Convention on the Rights of Persons with Disabilities (CRPD) in 2008. The convention has since received constitutional status in the country.

This treaty makes Argentina accountable for upholding its commitment to fully including people with disabilities in all areas of society. As such, in 2011, a National Disability Observatory emerged to supervise the implementation of the convention. It involves various working groups consisting of people with disabilities and public officials to monitor different areas of public policy including access to employment.

Since the adoption of the CRPD, Argentina has allocated over 724 million Argentine pesos toward helping promote the employment of people with disabilities. These programs have ranged from vocational training to the implementation of supported employment programs across government agencies to help reach the 4% job quota in public employment in 2017.

Addressing Access to Transportation

Although access to public transportation remains a significant barrier to employment for many disabled Argentines, some have taken measures to make public transportation physically and economically accessible to those with disabilities. Reports have determined that almost all buses in the capital city of Buenos Aires have a manual ramp at the rear door.

The subway station that people know as the subte has automated ramps and street elevators that often lead directly to the boarding platform. Additionally, plans have emerged to increase the number of stations with braille signage and tactile markers. These features have enabled many Argentines to travel freely and independently from their homes to workplaces.

As disability and poverty in Argentina so often interweave, the government has allowed disabled Argentines to ride all public transportation free of charge with the use of disability certificates. In some cases travel may even be free for a traveling companion depending on the disability. These certificates are available following a certification process that is voluntary and of no cost to the disabled person or their family.

Addressing Access to Education 

The United Nations has stated that as countries work to reduce poverty, they must ensure that all youth receive the same opportunities to contribute to society, and that increasing access to inclusive education is instrumental in bridging this gap as inequities in education negatively impact employment options for individuals with disabilities. While Argentina guarantees access to education for children with disabilities, these children often meet with discriminatory practices in schools and are subject to a lower quality of education, further compounding the effects of disability and poverty in the country.

As of 2016, the Ministry of Education in Argentina organized 35 events and workshops focused on drafting inclusive education guidelines and providing training to teachers. These programs have reached an estimated 45,250 people consisting of teaching staff and the general public. The Ministry has also prepared materials to increase awareness of inclusive education practices, including guidelines for providing accommodations and support to students.

The Argentine government has begun overseeing the implementation of inclusive education policies in all the nation’s provinces with a toll-free national hotline to record and track instances of discrimination in educational settings. Furthermore, with the support of the World Bank, planning and development are underway for inclusive education projects for schools in rural areas of the country where a lack of basic resources and services exacerbates disability and poverty in Argentina.

– Emely Recinos
Photo: Flickr

Cotopaxi Foundation
The Cotopaxi llama, featured on backpacks, jackets and beanies, has come to stand for more than just a brand; it is also an ideal. Cotopaxi, named after an Ecuadorian volcano, is a Utah based company that produces gear, whether that is hiking gear or clothing. Cotopaxi equips customers to face their environment. However, Cotopaxi’s impact extends far past gear. Its company regards ethical production, sustainability and humanitarian efforts as pillars of its business model. Cotopaxi sends a message with its products for people to “Do Good” through its products and the Cotopaxi Foundation.

What Sustainability Means to Cotopaxi

Angie Agle is Cotopaxi’s Director of Impact and Community Marketing. In an interview with The Borgen Project, she defined sustainability as “operating in a way that will allow future generations the resources they need to secure happy and complete futures.”

Cotopaxi pushes a conscientious business model that limits its environmental impact. It exclusively uses materials with a design to limit waste, such as its signature llama fleece or recycled fabrics. These recycled fabrics mesh together to make each product unique. The results are backpacks or coats with bright colors that stand out in any crowd.

A rip or tear in a Cotopaxi product does not mark the end of its use. Instead of encouraging customers to replace older products with new purchases, Cotopaxi implements a repairs program. The damaged item is fixed and then either resold or donated. Any profits go to the Cotopaxi Foundation. The repairs program allows materials to stay useful and significantly reduces company carbon emissions.

Sustainability, per Cotopaxi’s definition, is consideration for the future. It is not limited to environmental issues but encompasses any and all efforts to help upcoming generations. Cotopaxi’s humanitarian efforts, for example, demonstrate a second way to be “sustainable.”

The Cotopaxi Foundation

Davis Smith, CEO and co-founder of Cotopaxi, cites his childhood as the inspiration behind his company’s philanthropic purpose. Before moving to Utah, he grew up in South America witnessing firsthand how poverty can affect a community. He told Deseret News, “The people I saw every day were just as smart as me, just as hardworking and just as ambitious, but had no opportunity.” He set out to address global poverty in his own unique way; through gear. Five years after Smith founded Cotopaxi, he created an adjacent foundation called the Cotopaxi Foundation to combine giving with hiking.

Cotopaxi allocates 1% of its funds to the Cotopaxi Foundation, which then distributes those funds among carefully selected grantees, meaning that a portion of every consumer purchase goes toward doing good. Cotopaxi’s grantees cover a wide array of well-deserving causes. These include:

  1. International Rescue Committee: Cotopaxi partners with the IRC to help refugees displaced from their home countries. Due to Cotopaxi’s location, its work with IRC generally focuses on the Salt Lake area, holding educational events and contributing to the Cotopaxi Refugee Scholarship Program. To go even further, Cotopaxi connects with refugees through the IRC to offer them employment. This idea originated with Cotopaxi’s long-held tradition of writing thank you cards to customers. As the company grew, thank you cards became an unmanageable task for the existing employees. Smith turned to refugees in need of employment to fulfill the card writing task and has not looked back. The card-writing program through the IRC now includes resume help, interview training and coding instructions to facilitate further employment opportunities.
  2. Fundación Escuela Nueva: FEN is working to address educational inequities around the world. It firmly believes in the power of education to give confidence and hope to an individual and community, fighting to make sure everyone has access to those benefits. With Cotopaxi’s help, it has successfully provided education to over 45,400 children around the world.
  3. UN Foundation-Nothing but Nets: Nothing but Nets is making a big impact with a simple solution. Bed nets protect people from mosquitos while they sleep and have saved millions of lives from malaria. Cotopaxi works with Nothing but Nets to expand its organization to include more Latin American countries and save more lives.
  4. Mercy Corps: Mercy Corps’ impact extends all over the world. However, Cotopaxi’s work with the Mercy Corp centers in Columbia and Venezuela, again paying homage to Cotopaxi’s Latin American roots and namesake. Its partnerships provide Columbian and Venezuelan refugees with assistance ranging from money to medicine.
  5. Utah Refugee Services: Cotopaxi works with Utah Refugees Services to help acclimate refugees to their new environment. Cotopaxi also takes crucial steps to make refugees feel at home and find work. It regularly employs refugees through its repairs program in order to welcome refugees to the community.

The Cotopaxi Foundation allows Cotopaxi to have a two-part function: gear and good or “gear for good” as it puts it. Its donating process, being revenue-based, is special because it creates customer involvement. In fact, the buying of a hiking backpack initiates the purchaser into the giving process. This involvement does not simply make the customer temporarily satisfied with themselves, but it also sets the example of giving back and inspires further change.

Ismael: A Life Touched by Good

Ismael arrived in Utah after fleeing his home country of Uganda and spending two years in a Kenyan refugee camp. His new home offered a new set of challenges as he adjusted to the newness of everything. However, Cotopaxi met him with support, offering him a position as a thank you card writer while he looked for a more long-term occupation.

Ismeal now works as a supervisor over multiple Paradies Lagardère–owned stores. In regards to the help he received from Cotopaxi and its IRC partners, Ismael said that “They showed love for refugees … I was so amazed. Without them, it would be very hard because you know nothing.”

His story is one of many. Cotopaxi continues in its mission to leave the world better than it found it. It sustainably produces gear that hikers trust and give back to their community through the Cotopaxi Foundation. Every backpack or tent with the Cotopaxi llama emblem is inspiring change and doing good.

Abigail Gray
Photo: Flickr

COVID-19 and Global Poverty
Since early 2020, the entire globe has been battling the COVID-19 pandemic and attempting to address the outbreak properly. Most of the world’s population is currently under some form of social distancing as a part of a response to the outbreak. From scientific research to increased travel restrictions, almost every country is working on ways to boost the economy while managing the spread of the virus. However, COVID-19 has affected much more than the economy. Here are four ways COVID-19 and global poverty connect:

4 Ways COVID-19 and Global Poverty Connect

  1. The Consumption of Goods and Services: For most developing countries struggling with poverty, much of their economies depend on commodities, such as exports. Food consumption represents the largest portion of household spending, and the increase in food prices and shortages of products affect low-income households. Countries that depend on imported food experience shortages. The increase in food prices could also affect the households’ inability to access other services such as healthcare, a major necessity during this time. These are two significant connections between COVID-19 and global poverty.
  2. Employment and Income: The self-employed or those working for small businesses represent a large portion of the employed in developing countries. Some of these workers depend on imported materials, farming lands or agriculture. This requires harvest workers and access to local farmers’ markets to sell produce. Others work in the fields of tourism and retail. These fields require travelers, tourists and consumers — all of which lessen as COVID-19 restrictions increase. Without this labor income, many of these families (now unemployed) must rely on savings or government payments.
  3. Weak Healthcare Systems: This pandemic poses a major threat to lower-middle-income developing countries. There is a strong correlation between healthcare and economic growth. The better and bigger the economy, the better the healthcare. Healthcare systems in developing countries tend to be weaker due to minimal resources including beds, ventilators, medicine and a below-average economy. Insurance is not always available for low-income families. All of this affects the quality of healthcare that those living within the poverty line receive. This is especially true during the COVID-19 pandemic.
  4. Public Services: Low-income families and poor populations in developing countries depend on public services, such as school and public transportation. Some privatized urban schools, comprised of mainly higher-income families, are switching to online learning. However, many of the public rural schools receiving government funding do not have adequate resources to follow suit. This could increase the rate of drop out. Moreover, it will disproportionately affect poorer families since many consider education an essential incentive for escaping poverty. Aside from school, COVID-19 restrictions could prevent poorer families from accessing public transportation. For developing countries, public transportation could affect the ability of poorer families to access healthcare.

Moving Forward

There are many challenges that families across the globe face as a result of COVID-19. Notably, some organizations have stepped forward to help alleviate circumstances. The World Bank, Care International and the U.N. are among the organizations implementing programs and policies to directly target the four effects of COVID-19 mentioned above.

For example, the World Bank is continuously launching emergency support around the world to address the needs of various countries in response to COVID-19. By offering these financial packages, countries like Ethiopia, which should receive more than $82 million, can obtain essential medical equipment and support for establishing proper healthcare and treatment facilities. These financial packages constitute a total of $160 million over the next 15 months as a part of projects implemented in various countries, such as Mongolia, Kyrgyz Republic, Haiti, Yemen, Afghanistan and India.

Nada Abuasi
Photo: Flickr

Poverty Eradication in Rwanda
Rwanda is a low-income country in East Africa with a population of 12.6 million as of 2019. The World Bank and the IMF have supported Rwanda’s economic development, which has been remarkable throughout the past decade. Following years of conflict that destabilized national progress, particularly the 1990-1994 genocide that claimed almost 1 million lives, there have been exemplary innovations in poverty eradication in Rwanda.

In 2013, the Government of Rwanda drew its second Economic Development and Poverty Reduction Strategy (EDPRS II) as part of its Vision 2020 for socio-economic transformation, which included targets of a GDP growth of 11.5% and a 20% reduction in poverty levels. The Vision 2020 also aimed for an annual creation of 200,000 new jobs, 50% of them in non-agricultural sectors. The Government also founded the Rwanda Development Board (RDB) to further drive economic development. In 2019, RDB recorded $2.46 billion USD in investment commitments to Rwanda, with the U.S. being the top investor. Energy, water, manufacturing and the service industry attracted the highest investment. Notably, 46.5% of people in Rwanda were employed as of November 2019 with 61% of the total workforce in the agricultural sector. Here are some of the effective innovations in poverty eradication in Rwanda.

4 Innovations in Poverty Eradication in Rwanda

  1. e-Soko: e-Soko is an Agricultural Market Pricing Information System that the World Bank has funded. It seeks to empower farmers to make more informed decisions on farming by allowing them to access pricing information through ICT. The program also connects the Ministry of Agriculture with the farmers in sharing key information and continues to provide weekly market prices of farm produce available online. In 2019, the World Bank scored Rwanda a trading food indicator of 69.19 out of 100, which is a measure of domestic farmers’ use of regulatory processes for agricultural production. In 2020, RDB and FAO partnered in a three-year project dubbed “Support local suppliers’ capacity development and promote e-commerce in Rwanda” for smart solutions in horticulture, livestock and agribusiness.
  2. Girinka: Loosely translated as “may you have a cow,” Girinka is an initiative to alleviate poverty in rural communities that the Rwandan Government spearheaded in 2006 in collaboration with several NGOs. Based on the Rwandan traditional practice of giving cows as gifts, the Rwandan Government granted heifers which provided milk to combat malnutrition in children, commodity through sale of dairy products and improved agricultural output through their organic manure. By 2017, 85% of the projected households had received a heifer each with a total of 298,859 heifers distributed. A survey from 2012 showed that 79% of the households were food secure. The initiative, also known as One Cow per Poor Family, has been a success story among the innovations in poverty eradication in Rwanda.
  3. The One Laptop per Child Initiative: The Ministry of Education in Rwanda is committed to providing equitable, quality education for a skilled workforce in order to drive socio-economic development. To achieve this, the Government introduced changes in basic education such as a new Competence Based Curriculum that emphasizes social skills and application skills; the curriculum aims to reach a developing a workforce that is more productive. In line with this, in 2008, the Government launched an ICT program for primary schools labeled as the One Laptop per Child Program to increase understanding in mathematics, sciences and technology. As of 2019, 58% of primary schools, 85.4% of secondary schools and 51% of tertiary institutions in Rwanda were using ICT in teaching and learning. For the primary schools, 79.9% had science kits and 25.5% had a science laboratory. As of 2020, RDB put Rwanda’s literacy rate at 73.2%.
  4. Mobile Employment Services: In 2019, RDB introduced the Kora Portal, an online employment site that is one of the innovations in poverty eradication in Rwanda. RDB further provided buses and ICT experts to take the services to remote parts of Rwanda. By 2020, the portal had registered 965 jobs, 62 employers and 4,800 job seekers. The portal also has a skills database that recorded 95,000 graduates. This was in line with the Government’s aim to create 1.5 million jobs by 2024. As of November 2019, Rwanda’s unemployment rate was at 15.4% in comparison to 14.3% in February 2018.

Prospects

Rwanda aims to become a middle-income country by 2035 and a high-income country by 2050. In its Vision 2050, the RDB’s National Skills Development and Employment Promotion Strategy seeks to boost investment in the country, advance skills in the workforce and build on emerging technologies all to transform Rwanda’s socioeconomic status. The World Bank Group projected Rwanda’s annual GDP growth rate to be at 6.9% in 2021 in comparison to a low of 2% in 2020 from a high of 9.4% in 2019. Through the innovations in poverty eradication in Rwanda, the country’s socio-economic status should keep growing.

Beth Warūgūrū Hinga
Photo: Pixabay

SDG 8 in India 
The Sustainable Development Goal 8 aims for the promotion of “sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all.” In India, the government has launched various schemes to ensure that people, especially the youth, receive sustainable work opportunities through programs like Make in India, Startup India, Skill India and Digital India. Here are some updates on SDG 8 in India, and in particular, what its performance has been regarding each indicator pertaining to the goal.

Indicators Regarding SDG 8 in India  

  1. Gross Domestic Product (GDP) Per Capita: One of the major indicators of the goal is the growth in Gross Domestic Product (GDP) per capita, and in the least developed countries, it should be 7% per annum. In 2019, India’s GDP growth per capita was at 4%. The major share in the growth of GDP in India is from the service sector, which is more than half. This model is useful in countries with less population. With a population of over 1.3 billion, there is a need to create opportunities in the manufacturing sector. 
  2. GDP Per Capita Growth Rate Per Employed Person: GDP per capita growth rate per employed person is the second indicator to achieve economic productivity by making technological advances, diversifying and innovating, through a focus on adding a high-value labor force. This indicator gauges the annual change in the real GDP per employed person and captures the change in the productivity of a country’s labor force and the use of resources. India experienced a 5.8% increase in the GDP per capita growth rate per employed person in 2018.
  3. Informal Employment: The third extremely important indicator captures informal employment which is defined as the “proportion of informal employment in non-agriculture employment, by sex.” This is an extremely important goal as according to the International Labour Organisation (ILO), 81% of the population has employment in the informal sector. This goal interconnects with the fifth Sustainable Development Goal of gender equality. Rural poor women are participating in Self Help Groups (SHGs) and obtaining support to participate in economic activities through services such as savings, credit and livelihoods support. According to reports from the World Bank, 67 million women are mobilized into 6 million women’s Self-Help Groups in this flagship program to reduce poverty and empower women. To promote women’s entrepreneurship, under the startup India scheme, some have undertaken policies and initiatives to create networks and empower women.   
  4. Ease of Doing Business: The performance of India in ease of doing business is mediocre with a rank of 49 out of 190 countries based on data benchmarked to May 2019. A higher rank indicates a more conducive regulatory environment that allows ease in initiating and operating a local firm. The rank is based on aggregate scores on several topics like working to start a business, obtaining electricity and several others. It is imperative to work towards providing a better space for doing business to allow foreign direct investment (FDI), which would further create work opportunities and generate employment.   

Looking Ahead

The COVID-19 pandemic brings to focus the need to invest in the skills of people to ensure stability in work. India faced a major challenge during the March-April 2020 lockdown where millions of laborers migrated from cities to their villages due to work instability and lack of opportunities. Generating employment opportunities, robust infrastructure, empowerment of the informal workers and bridging the gender gap in earnings are areas that require immediate attention to achieve SDG 8 in India.    

– Anandita Bardia
Photo: Flickr

IMF in JordanJordan, bordered by Saudi Arabia, Iraq, Syria and Israel, is an Arab country in the Middle East. The country is on the East Bank of the Jordan River yet relatively landlocked. It has accordingly received a massive influx of Palestinian and Syrian refugees. Recently, the International Monetary Fund (IMF) in Jordan provided two different forms of economic relief to people in light of the ratio of debt to its gross domestic product (GDP) and the current pandemic. Read more about the IMF in Jordan below.

The Effects of the Pandemic on Jordan

Jordan’s economy will experience contraction in 2020 due to the effects of COVID-19. The pandemic-induced lockdown significantly impacted 250,000 daily-wage workers and businesses facing a liquidity crisis. It also delayed foreign investment, trade and tourism. The latter industry generates $5 billion annually for Jordan.

Only 11.3% of respondents in a UNDP survey claimed that their income was unaffected by the pandemic, which has significantly impacted young adults. In the survey, 38.3% of respondents experienced challenges getting clean drinking water, and 69.3% struggled with accessing basic healthcare.

Countries in the Middle East and Central Asia, including Jordan, will experience a 4.7% drop in its constant-price GDP, adjusted for the effects of inflation, in 2020. Additionally, the average size of economic relief programs in the Middle East was smaller than in other regions in the world. The Middle East and North Africa (MENA) oil-importing countries’ ratio of debt to income will reach 95% in 2020. Thankfully, the IMF provided $17 billion in aid to the area since the beginning of 2020. It also helped catalyze $5 billion from creditors.

The IMF in Jordan

Jordan’s four-year Extended Fund Facility (EFF) is a partnership between the Jordanian government and IMF staff, which focuses its $1.3 billion on growth, jobs and social safety nets. The loan program, approved on March 25, 2020, will create more jobs for women and young people. EFF funds finance the general budget, including health, education and social support, while also providing support to Jordan’s Syrian refugees.

Although the IMF in Jordan created the EFF funds before the pandemic, it changed the program to support spending on emergency outlays and medical equipment. The IMF in Jordan also helped secure congressional grants to ease annual debt, as public debt increased in the past decade to an amount equivalent to 97% of its GDP.

In addition, the IMF in Jordan approved $400 million in emergency assistance under the Rapid Financing Instrument (RFI) to fight the COVID-19 pandemic in May 2020. Due to the fall of domestic consumption during the outbreak, these funds answer companies’ and consumers’ borrowing needs. The government will spend the RFI funds through the national treasury account, where specific budget lines track and report crisis-related expenditures.

The emergency economic assistance allows for higher healthcare budgets, containment and support to vulnerable households and businesses. Moreover, it will ease external financing constraints and avoid loss in official reserves. The $1.5 billion balance of payment gaps, however, will emerge with increased public debt and a widened fiscal deficit.

Moving Forward

Despite the challenges presented by the pandemic, Jordan’s tech start-ups, global supply chains and exporting masks have helped its economy. Tech literacy, in particular, has been especially vital for Jordanian youth to find remote jobs. Moreover, the EFF program can ensure support for the people in Jordan by easing access to basic needs. The program will also help reduce the impacts of poverty by increasing social protection coverage on poor families.

Monetary and fiscal authorities in Jordan have reduced interest rates and delayed bank loan installments and tax payments due to the outbreak, injecting over $700 million in liquidity. Additionally, the country implemented a cash-flow relief program for companies. It also activated the National Aid Fund cash transfer program for daily wage workers.

Jordan has prioritized human safety for its citizens and refugees in the fight against COVID-19. So far, it has only had low to moderate numbers of per capita COVID-19 cases. Thanks to the help of the IMF in Jordan, the country seems to be on track to recover from pandemic.

Isabella Thorpe
Photo: Flickr