Archive for category: Global Poverty

Key articles and information on global poverty.

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UPS Supports International Aid Through Supply Chain Innovation


United Parcel Service (UPS) is the world’s largest package delivery company and a global leader in supply chain innovation. The company’s extensive worldwide network makes it a critical link in everyday commerce while providing the necessary infrastructure and expertise to continue operations during crises. Since its establishment, UPS has leveraged its sub-sectors, global partnerships and supply chain intelligence to provide relief for communities across the world in times of need.

The UPS Foundation, the philanthropic arm of UPS, leads the company’s response efforts. The organization donated over $6 million this year to United Nations agencies, humanitarian relief partners, non-profit and international non-governmental organizations.

UPS History of Crisis Prevention

In 2014, an outbreak of the Ebola Virus spread across West Africa, killing 11,325 people. As the second-largest outbreak in history, it highlighted the importance of assembling an efficient system for distributing medical equipment. Later that year, the UPS Foundation joined with Henry Schein, Johnson & Johnson, The World Trade Organization, World Food Program and World Economic Forum to start the Pandemic Supply Chain Network, with the goal of increasing supply chain efficiency. The partnership is a collaboration between public and private sectors that tracks global demand for medical supplies in order to coordinate the allocation and distribution of equipment during large scale public health emergencies.

In 2016, the UPS Foundation partnered with Gavi, the Vaccine Alliance, the Rwandan Ministry of Health and Zipline, a drone delivery service providing access to vital medical supplies, to establish the Rwanda Drone Delivery Network. The network is the world’s first drone delivery service whose mission is to provide medicine, vaccines and supplies to remote regions in Rwanda and Ghana. Making basic treatment more accessible is a crucial step toward achieving the UN Sustainable Development Goal of universal healthcare coverage, particularly in isolated and underdeveloped areas.

Previously, UPS also joined with the Partnership for Influenza Vaccine Introduction to provide tools and educational resources to healthcare workers about influenza vaccine administration. The organization works with low-income countries to build yearly influenza vaccination programs. These programs provide a strong existing infrastructure for vaccine distribution that can hold up during a pandemic. Through a $50,000 grant, The UPS Foundation funded the vaccination of more than 17,000 individuals in Armenia, Mongolia and Kyrgyzstan, as well as 130,000 health workers in Vietnam.

COVID-19 Response

Since the start of the COVID-19 pandemic, UPS has taken an active role in supporting international recovery efforts. Through various grants and funding, The UPS Foundation has contributed a total of nearly $21 million toward humanitarian causes in 2020. The company hopes to increase the involvement of private-sector companies in relief efforts through partnerships. These partnerships would provide medical equipment, treatment, food and other basic necessities to vulnerable regions.

UPS joined Project Airbridge, a partnership between the Federal Emergency Management Agency (FEMA) and private-sector companies in numerous countries, to expedite the delivery of medical supplies to remote or vulnerable areas. With the help of its existing global supply chain, UPS is operating additional flights between several countries in Asia, Europe and the U.S. to aid in the distribution of personal protective equipment such as masks and gloves, surgical materials, thermometers and test kits.

UPS is also currently working with three COVID-19 vaccine developers and preparing to facilitate an eventual distribution and rollout. Its subsidiaries Polar Speed and Marken are using their storage facilities, designed to handle fragile and temperature-sensitive materials, to assist with holding and logistics.

During the COVID-19 pandemic, innovation and adaptation are critical skills in developing solutions. UPS has been a leader in supply chain logistics and is now using its expertise to provide global relief. The company’s ability to modify its operations to meet the world’s needs has been tested in the past and continues to show as UPS creates innovative solutions to humanitarian issues, both alone and through partnerships.

– Sylvie Antal
Photo: Flickr

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Hunger in Albania: 3 Organizations Making a Difference


Hunger and starvation are a harsh reality for the Albanian people. The country, for many years, has had a significant portion of the population who are unable to feed themselves and their families. According to the Global Hunger Index, Albania is ranked 28th out of 117 countries struggling with hunger. The Global Hunger Index also gives Albania an overall score of seven. While a score of seven is not incredibly low, according to the Global Hunger Index, it could still be improved. In order to address the impacts of hunger in the country, multiple Albanian organizations are providing support to help their people. Here are three organizations working to positively impact hunger in Albania.

3 Organizations Making a Difference

  1. Nehemiah Gateway is working to reduce hunger in Albania. Nehemiah Gateway originally started in Albania but has expanded to help people in other countries as well. The organization provides not only food parcels, but also medical supplies and social care to people in need in Albania. It is currently running a fundraiser guided toward providing the necessary supplies to starving people in Albania. As of July 29, 2020, the organization has received more than $7,800 in donations out of a $9,000 goal. Nehemia Gateway is still accepting fundraiser donations.
  2. The Children’s Human Rights Center of Albania is another organization pursuing an end to hunger in Albania, especially with respect to youth in the country. Along with addressing hunger, the organization also represents the rights of children in other ways. The organization seeks to make sure the youth of Albania is educated, protected and participates politically within the country. In April of this year, The Children’s Human Rights Center of Albania made news when it made a plea to the European Commission, asking for relief efforts to help 100,000 children who are at risk of starvation. While the request for help has not yet been answered, the human rights center is still committed to fighting for the well being of Albania’s youth.
  3. Food Bank Albania is another organization that has been making extremely focused efforts to help those at risk of hunger. The food bank is based in Albania and its primary concern is making sure the people of the country are fed no matter the circumstances. Food Bank Albania gave an update on its activities during the recent earthquakes as well as during the current COVID-19 pandemic. The organization said that, since November of 2019, it has been able to provide people in need in Albania with about 223,000 kg of food. This is equivalent to about 500,000 meals. The organization is also confident that it can provide about 30 to 40 tons of fresh produce to people in need throughout the summer.

Hunger in Albania continues to be a major concern. The country is ranked 28th out of 117 countries struggling with hunger. As a result, a large portion of the population is still in need of help and further support. However, these three Albanian organizations have been resourceful in fighting to make sure that their people remain fed and provided for.

– Jacob E. Lee
Photo: Flickr

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Lotus Face Masks in Cambodia: A Sustainable Solution to High Mask Demand

Lotus flowers are used to make lotus face masks in Cambodia to address PPE waste and a high face mask demand. Several activists and actors have raised alarm over the potentially devastating effects that personal protective equipment (PPE) can have in terms of increasing pollution around the world. There have been reports of PPE waste collecting on coasts around the world. Plastic pollution negatively impacts ocean health and, for maritime nations, this could translate to economic losses and the loss of livelihoods for those working within the ocean economy. One study by Plastics Hub found that if every person living in the UK utilized a single-use face mask for every day of 2020, it would contribute an additional 66,000 tons of plastic waste. It is unclear how much of this waste could end up in marine environments, but with 150 million tonnes already circulating the earth’s water, there is a pressing urgency to address the unsustainability of single-use face masks to fight the spread of COVID-19. As a result, an eco-friendly designer in Cambodia created lotus face masks to address this PPE waste.

Is There a Way to Combat PPE Pollution?

Cambodia is not exempt from the negative impacts that pollution can have on marine environments. The Food and Agriculture Organization of the United Nations (FAO) identifies Cambodia as being highly dependent on its aquatic resources for both food security and the livelihoods of the Cambodian people.  In 2013, Cambodia averaged 700,000 tons of fishing and aquaculture production.  At a conference on maritime issues in Cambodia in 2015, hosted by the National University of Management in Phnom Penh, speakers highlighted the risk pollution poses to the economic livelihoods of those who depend on the marine economy.  The FAO has also spoken about the degradation of the marine habitat in the country due to pollution. Photographer Niamh Peren described one scene of coastal pollution in Sihanouk, Cambodia as “mountains and mountains of plastic.”

Pollution in the marine environment is a global problem. Due to the nature of the ocean’s currents, marine plastic pollution does not respect national boundaries and one country’s actions will not be enough to address the problem alone. However, Awen Delaval, an eco-friendly fashion designer, is implementing an innovative solution to tackling plastic pollution, while simultaneously diversifying the economy in Cambodia and alleviating poverty rates in the country.

Turning Unwanted Lotus Stems into Organic Fabric

Delaval’s lotus face masks are made utilizing ancestral techniques of producing lotus fiber from lotus stems, which are commonly regarded as waste within the country. The entire process of creating sustainable lotus face masks is entirely eco-friendly, as well as biodegradable.  The fabric produced using lotus fibers is remarkably efficient at filtration and, according to Delaval, is a superior fabric due to its light texture and breathability. The eco-textile company Samatoa, which Delaval manages, produces lotus masks that meet the standards of both the United States’ CDC and France’s Association Francaise de Normalization, making them an effective alternative to plastic single-use face masks.

Samatoa also values the tenets of fair trade and has made a positive impact on the livelihoods of poor Cambodians in the Battambang province. The company has provided employment that empowered thirty Cambodia women to be financially independent and provide for their families. According to Samatoa, the wages earned by company workers are twice what they would receive from other textile work in the country. Additionally, the company ensures that workers have access to a number of benefits, including trade union rights, paid leave and health insurance.

Impact of Lotus Face Masks

Delaval’s innovative solution to plastic pollution produced from single-use face masks gained international attention. The company he manages, Samatoa, is striving to increase production and capacity to improve the lives of an additional 500 women. Samatoa also provides educational opportunities to lotus farmers on sustainable farming practices, further improving the lives of the Cambodian people. Deval’s lotus face masks provide a sustainable solution to the problem of PPE waste while simultaneously providing economic development to rural communities in Cambodia.

– Leah Bordlee
Photo: Pixabay

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Nintendo Fights Poverty One Console at a Time

Nintendo Fights PovertyAs citizens around the world were encouraged to socially distance and stay at home amid the initial spread of COVID-19, two things soared in popularity: household supplies, such as cleaning wipes and toilet paper, and one of Nintendo’s newest console releases. The Nintendo Switch has kept millions of people occupied while transitioning into a completely new- and for many, less busy- lifestyle. What may be the most fascinating aspect of this spike in product demand is that the purchasers of the Nintendo Switch have not only found a new pastime, but also contributed to the fight against global poverty from their very own couches.

Nintendo Fights Global Poverty

Nintendo’s headquarters are located in Kyoto, Japan, but the company has bases in almost forty other countries. However, benefits are not exclusively reserved for countries that house Nintendo stores. The company’s popularity, success and reach are also advantageous for other countries that are exporters of some of the necessary raw materials needed to make Nintendo Switches, such as various metals, fossil fuels, chemicals and plastics. Being an exporter of materials in high demand means that a country can earn high profits. Not only do these exporting countries see such an increase in profits, but they can also use the opportunity to lower the unemployment rate, as they will require more workers to accommodate rising global demand.

As its popularity spreads, Nintendo is expanding and creating more jobs across the globe. Despite Nintendo’s classification as a gaming company, expansion means that diverse positions in management, computer science, janitorial services, marketing and more will need to be filled as new regions, branches and stores are opened. And put simply, when more people earn wages, poverty can be reduced.

Nintendo Empowers Women

As Nintendo fights poverty by creating jobs in everything from metal transportation to software engineering, it has also developed a corporate promise to empower women. In 2016, the company set a goal to increase the percentage of women recruited or promoted by 5% throughout the following five years. Female employees have praised Nintendo for its active support on issues ranging from parental leave to paying for courses in professional female empowerment. Women make up approximately 70% of the globally impoverished due to pay gaps, being held primarily responsible for child-rearing and a smaller likelihood of being educated, and Nintendo’s efforts are slowly but surely lowering their global poverty rate.

Poverty in the United States

United States chapters of Nintendo fight poverty by donating annually to charities. These charities include the Boys & Girls Club of Bellevue, for which Nintendo holds drives to collect school supplies for low-income families and support chapters in low-income areas, the YWCA Family Village, where it sponsors a Thanksgiving dinner drive, and the Nintendo Annual Golf Tournament, from which proceeds are donated to a different charity every year. It also supports employees’ interests through its dollar-for-dollar gift-matching program to any certified organization of the employee’s choice.

As medical professionals continue to encourage people to stay at home, boredom is bound to ensue, and it may lead to an increase in sales for Nintendo consoles and games. For every product sold, dozens of Nintendo employees benefit; the truck drivers transporting materials, the project manager in Thailand overseeing electrical equipment exports, the factory worker making the consoles, the cleaning crews coming in after dark, and countless more. The interconnectedness of global industry ensures that one purchase can have effects in places customers have never even seen; those who have done nothing over quarantine but play on their Nintendo Switches can rest assured, then, that their impact is much larger than they think.

– Becca Blanke
Photo: Needpix

Rotary Adds New Focus Area: The Environment

Environment
Esteemed service organization Rotary International describes itself as “a global network of 1.2 million neighbors, friends, leaders and problem solvers.” Running strong for upwards of 110 years, Rotary uses its expansive network to enact positive change for its focus areas: promoting peace, fighting disease, providing clean water, sanitation and hygiene, saving mothers and children, supporting education and growing local economies. These six areas act as pillars, each sustaining the vast organization by way of focused motivation. On June 25, 2020, Rotary International announced, with unanimous support from the Rotary Foundation Trustees and Rotary International Board of Directors, that it will be adding a seventh area of focus: supporting the environment.

The Decision to Add

This new area of focus did not come about randomly. Rotary has consistently shown support for environmental projects over the past five years, contributing over $18 million in funding from Foundation grants. Before the environment was an official area of focus, Rotary regularly made the environment a priority, recognizing how intertwined the issue is with the other six focus areas. The benefit of officially announcing the environment as an area of focus, then, is that it allows Rotary to directly channel global grants to this issue, creating new projects and innovations. Rotary International President Mark Maloney said of the decision, “I believe strongly that our Rotary Foundation programs now have a valuable added dimension to our efforts.”

Support for the Addition

In January 2020, when discussion of whether to add the new focus area occurred, the Environmental Sustainability Rotarian Action Group advocated for its addition, arguing that it would help to maximize the success of environmentally-focused projects. Their reasoning also touched on how other focus areas are impacted by the environment. For example, to effectively achieve the focus of providing clean water, Rotary must acknowledge how water shortages can occur in communities near areas of deforestation. In addition, trash and toxic waste dumped into water sources can undermine Rotary water projects while also spreading disease. On the flipside, Rotarians implementing projects to support the other focus areas must consider their effects on the environment and whether a project as a whole is sustainable.

Sustainability Projects

The Environmental Sustainability Rotarian Action Group oversees a number of sustainability projects running globally. The group’s environment-specific projects show their commitment to this new focus area. Some of the projects include Rotarians for Bees, started by the Rotary Club of Canterbury in Australia to conserve bee populations; Lunch Out of Landfills, created by the Southern Frederick Rotary Club in Maryland to reduce food waste, and Ocean CleanX, which uses technology to increase awareness of ocean pollution. There are many more projects that Rotary clubs have adopted to limit society’s negative effects on the planet. The announcement of the seventh focus area will bring about new environmental projects and increased funding to make this global issue a Rotary priority for years to come.

The Future

Adding the environment as a new area of focus provides Rotary International with the influence needed to continue sustaining humanitarian projects in the long term while also actively working to make the planet cleaner and safer for the communities it serves. This proactive approach to climate change ensures that Rotary International will be able to handle the inevitable changes arising from a warming planet amid increasing levels of pollution, deforestation and extinction. Rotary is not alone. The Bill and Melinda Gates Foundation, a partner of Rotary, has also added climate change to its top issues. Humanitarian organizations like Rotary have the network and resources necessary to help vulnerable communities adjust to environmental changes that are on the horizon.

– Maria Marabito
Photo: Flickr

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3 Ways to Invest in the Children of Palestine

children in palestine
Palestine is a country located in the Middle East, off the coast of the Mediterranean Sea. Its boundaries are disputed but include the major territories of the West Bank and the Gaza Strip. Palestine has a population of over five million people, with almost two million living in the over-populated Gaza Strip and three million in the West Bank.

The ongoing Israeli-Palestinian conflict has played a detrimental part in the livelihoods of 2.4 million Palestinians, denying them access to necessities such as health care, stable housing and education. The 13-year blockade on Gaza has restricted freedom of movement for inhabitants in Gaza, limiting one million children of Palestine access to basic commodities found in Israel. Children are subject to shocking levels of violence on the way to and from school, during school and even in their own homes. Every year, the Israeli military detains and prosecutes around 700 Palestinian children, many of whom commit mild crimes, such as throwing rocks during demonstrations.

Much of Palestine consists of young people, about 53% of its population is made up of children under the age of 18. In every society, including Palestine’s, the children are the most valued members; dreams are built with the hopes of manifesting a better future for the youth who have a potential that is yet to be realized. Here are three ways to invest in the children of Palestine to help them attain the right to a safe and just future.

3 Ways to Invest in the Children of Palestine

  1. Sponsor a child – There are a number of nonprofits that give people the opportunity to sponsor one of many Palestinian children and invest in their futures. Organizations such as Humanium and SOS Children’s Villages look to provide children with a safe living environment, education, emotional and mental support, as well as access to healthcare services. These organizations also fight injustices aimed specifically at Palestinian children, such as child labor and marriage.
  2. Support legislation – Much good work comes from initiatives such as the Promoting Human Rights for Palestinian Children Living Under Israeli Military Occupation Act (H.R.2407). This bill, proposed by Minnesota Democrat Rep. Betty McCollum, prohibits the use of U.S. foreign assistance funds to support the military detainment, interrogation, and ill-treatment of children in violation of international law. It also prohibits funds from being used to support certain practices against children, including sensory deprivation, solitary confinement and torture. It is important for U.S. citizens to speak up on behalf of Palestinian children, to let their voices be heard by urging Congress to take action against these injustices via phone calls, emails, and lobbying meetings.
  3. Stay informed –  Several initiatives aim to improve conditions for the children of Palestine. UNICEF, for example, plans to work closely with partners to provide children with safe drinking water, solar power, improved latrines, sanitation services and access to school WASH facilities. The nonprofit will continue to prioritize strengthening child protection systems, addressing negative coping mechanisms and supporting neonatal and postnatal care. The organization will also ensure that children benefit from improved access to quality learning in safe and inclusive environments, and are empowered to contribute to their society’s development.

Youths are not only the future, but they are also the present. The children of Palestine have a right to a safe and just life, where persisting conflict and a lack of human rights do not define their potential. It is important that citizens of the developed world play an active role in investing in these young people and helping empower them so that they can graduate from a life riddled with conflict and violence, to a fulfilling, more sustainable one.

– Sarah Uddin
Photo: Flickr

 

 

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Homelessness in Jordan

Homelessness in JordanHomelessness is a major issue that almost all countries face around the world. There are many explanations for high rates of homelessness, such as mental health, addiction, unemployment, previous imprisonment and more. However, Jordan presents some of the lowest rates of homelessness across the entire world. In fact, homelessness in Jordan ceases to exist.

In 2017, the Ministry of Social Development in Jordan only reported sixteen cases of homelessness from 2000-2017. The vast majority of these cases (15/16) were accredited to mental health problems, and the sixteenth case consisted of a man who was unemployed and had recently lost his family.

Additionally, all sixteen of these individuals were taken care of and are no longer homeless. The Ministry of Social Development worked to place these citizens in mental health facilities or reconnect them with family members who can help them.

Reasons Why Jordan Has Low Rate of Homelessness

One of the main explanations for a low rate of homelessness in Jordan is its collectivist, tribal culture. A study conducted by Joshua Ahearn reveals that the Jordanian government is not responsible for solving issues of homelessness and instead, homelessness is remedied by family and community members.

Ahearn discusses how Jordanian tribal culture prioritizes taking care of family and members of a neighborhood regardless of an individual’s situation. For example, community members place shame on families who struggle with addiction. As a result, families take it upon themselves to help their own who may be struggling and bring them out of homelessness. Communities, or “tribal members” as Ahearn calls them are rather large so there are always people with resources that are willing to help.

How Jordanians View Homeless Individuals

Additionally, Ahearn created a survey in order to observe how citizens treat homeless people in their neighborhood, another part of Jordan, or even a non-Jordanian homeless citizen. This study showed that the vast majority of people take action rather than just passing by a struggling individual.

For instance, the findings explained that when approaching a homeless person in their neighborhood, citizens are “extremely likely to give money or engage in other actions such as informing the public or inviting them into their home.” Furthermore, for citizens outside of their community or non-Jordanian citizens, people are more likely to call a social service organization to get help or assistance. The Ministry of Social Development is the main organization that directly helps these individuals escape homelessness rather quickly, largely by contacting family members or a mental health facility.

Impact of Collectivist Culture on Homelessness Rates

Overall, homelessness in Jordan does not exist consistently. The main reason for the lack of homelessness can be traced to the strong tribal and community ties that are present throughout Jordan. Citizens work together to eradicate all causes of homelessness and as a result, the government does not need to combat homelessness with structural programs; in fact, government interference and other organizations have “no impact” on homelessness rates.

This approach would be rather difficult to implement in other countries since Jordan’s lack of homelessness is rooted in cultural values and community which could clash with existing values and priorities of other countries. In particular, a study conducted in the United States and South Korea compared the impact of a collectivist (South Korea) and individualist (United States) culture on homelessness. This study revealed that South Korea’s collectivist culture instilled a reliance on peers and family members for overcoming homelessness and strategies for helping themselves. Contrarily, United States citizens utilized social services and other organizations more than friends and family.

As a result, collectivist cultures, such as Africa and Asia, can learn from Jordan and South Korea when working to reduce their homeless populations. While all collectivist cultures may not be identical to Jordan in their lack of homelessness, investing in and encouraging neighborhoods and communities to help their own can yield positive results and less homelessness.

How Adopting a Jordanian Approach to Homelessness Can Help

Furthermore, many governments still have a Ministry of Social Development or an organization like it that can provide more services to those who require additional resources. Therefore, if governments and NGOs want and need to become involved in reducing homelessness, increasing support to these organizations can be beneficial. Then, governments can encourage reaching out to service groups like the Ministry of Social Development when they see a neighbor or friend in need if they do not have the ability to care for the homeless on their own.

This strategy can also be utilized by more individual, “Western cultures” like the United States. It is unlikely that the approach to homelessness in Jordan would carry over into these cultures. Instead, individualist countries can pump money and resources into their version of the Ministry and Social Development and teach citizens to request aid when they come across a homeless citizen. However, this approach would require breaking the stigma associated with homelessness and the “laziness” that many individualist cultures attribute to this way of life. But the Jordanian method can be altered to fit the needs of each culture in order to see a decrease in homelessness.

– Sophia McWilliams
Photo: Pixabay

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Nonprofit Aids Ugandan Women in Poverty

Ugandan Women in PovertyPoverty affects millions of people around the world. What is often overlooked, however, is that women are deeply impacted by the struggle of poverty and are threatened by it in ways that men may not always be. One nonprofit, The Greater Contribution, has been tackling these issues in their battle against Ugandan poverty in the wake of the coronavirus.

Background

Ugandan women, not to mention women across Africa, have been uniquely affected by not just the pandemic but also poverty. Over 70% of African women who don’t work in agriculture work in the informal sector—work such as market and street vending. Many of the women working in these jobs in Uganda don’t simply have to worry about law enforcement confiscating their goods being sold in undesignated markets. They now must also worry about how they will survive in a severely slowed economy. Furthermore, the work that is most threatened by the crisis—such as accommodation, food service, real estate and business services among others—employs 41% of the female workforce worldwide.

As unemployment rises, it’s predicted that women will take the brunt of the damage and that the number of Ugandan women in poverty will increase. While illustrating the extent of the issue, humanitarian group CARE pointed to Guatemala, where 96% of the women benefiting from their entrepreneur programs are no longer able to afford basic food items, as an example of the issue. In many of these cases, Ugandan women are not wealthy business owners but are simply seeking to make a living day-to-day and hand-to-mouth. This is as true regarding poverty in Uganda as it is anywhere else.

The Greater Contribution

The Greater Contribution is working to amend these issues. The NGO, which has been in operation since 2006, primarily focuses on providing microloans to and organizing literacy programs for Ugandan women in poverty or on the cusp. However, due to the COVID-19 pandemic, they’ve been adopting new strategies in order to best aid impoverished women. As of late, they have started a virtual event running through the month of July called Lift&RaiseHER. The program is designed to raise funds for struggling female-owned businesses that have been hit hard by the pandemic. Supporters will make a donation and take a picture of themselves lifting a household object, meant to reflect how they are working to lift up Ugandan women in poverty. They’re then asked to share the photo on social media in order to get the word out and encourage others to contribute. The financial goal of the event is to raise $20,000 between July 4th and July 31st.

This hasn’t been the only action that The Greater Contribution has taken. After an emergency appeal, they raised $5,000 in order to deliver basic foodstuffs and emergency supplies to over 800 of their borrowers. Furthermore, their staff has manufactured and delivered their own hand sanitizer after price gouging made it all but unavailable to the impoverished. These steps, while not always massive, are nonetheless important to effectively combat poverty in Uganda.

Conclusion

The impact that the global epidemic has had on the impoverished is undeniable. But thanks to the work done by nonprofits like The Greater Contribution, some semblance of recovery is being offered to the women who are on the precipice of poverty, particularly Ugandan women in poverty. They provide a model others should seek to emulate worldwide.

– Aidan O’Halloran
Photo: Flickr

How Rafode is Changing Lives and Economies

Rafode
For many years, microfinance was viewed as one of the most successful means of raising individuals and communities out of poverty. In Myanmar, small and medium enterprises made up 99% of the country’s businesses. Most of those were, to no surprise, micro-businesses. In particular, the tool of microfinance was viewed as especially helpful to women. Yet, it turns out that studies found that microloans were not actually as impactful as many wanted them to be. The problem is that, because microloans are often given to those considered high-risk borrowers, high-interest rates are charged, making it difficult for those receiving the loans in the long run. The way to make microloans sustainable is by diverting the focus away from scalability and immediate returns. Rafode, a startup in Kenya, has done just that.

Headquartered in Kisumu, Kenya, Rafode is a “non-deposit taking Microfinance Institution.” With its main focus on women in rural communities, Rafode has successfully distributed over 40,000 loans, all with a value of around 700 million Kenya Shillings or $6.5 million. Relying on technology to deliver its products and services, Rafode has succeeded in reaching rural communities and uplifting both men and women through microloans.

Products and Services

Rafode has eight different products, all in the form of loans for different purposes.

  1. Inuka Business Loan: As a group loan, this is intended to encourage clients to create, upgrade or expand a business. This loan is the first step to receiving an individual loan and can range from 10,000 to 480,000 Kenya shillings.
  2. Masomo Loan: Dedicated to education, this loan is aimed to support a client’s family in receiving an education.
  3. Green Energy Loan: Working with other companies that provide green products, including Burn, Marathoner and Sunking, this group loan provides support for rural clients seeking access to affordable green energy products.
  4. Agribusiness Loan: As the name would suggest, this loan exists to specifically help small scale farmers in the agribusiness industry.
  5. Pamoja Loan: As another group loan, this works to support a group hoping to support its local economy.
  6. Emergency Loan: As an individual loan, the Emergency Loan serves to cater to the client’s emergencies, typically related to their business.
  7. Individual Business Loan: A more selective loan to receive, this loan exists exclusively for clients who already have businesses, and who already have businesses that are stable and have a reliable source of profits.
  8. Asset Loan: This final loan is self-securing. Providing real flexibility to clients, they gain the ability to finance movable assets and free up cash they might not have had before. Like the Individual Business Loan, this exists for clients who already are seeing their business profit, and hope to expand or grow it even more.

The Value of Microfinance

While conventional microloans have not been so effective, researchers have found that by providing microloans with little to no collateral, there are usually better results. Specifically, when given to women, these results are even more effective. This is because, especially in developing countries, microloans are among the only things that increase women’s decision-making power. In other words, microloans undeniably empower women.

So, Rafode’s efforts to give 85% of their microloans to women, focusing on rural communities and offering a plethora of different types of loans, all with very little collateral, have enabled this startup to do extremely impactful work that provides mutual benefits to the clients and back to the company. The most successful microfinance products allow flexible payment periods, individual liability contracts and one of Rafode’s main tools, the use of technology.

By believing in microfinance and adjusting to what will work by trusting in their clients, Rafode has raised individuals and families out of poverty, as well as revitalized economies in the process.

– Olivia Fish
Photo: Flickr

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The IT Sector in Palestine Can Save Palestinians

Hisham Hijjawi Collage of Technology, representing young people who may enter the IT sector in Palestine
The COVID-19 pandemic has put thousands of livelihoods and careers in Palestine in jeopardy. Experts predict that the Palestinian economy will reduce by a minimum of 7.6% in 2020. Facing these economic hardships, many Palestinian business owners had to close down because they lacked the supplies or training necessary to continue their businesses digitally. Digital technology, as a whole, has been one of Palestine’s main economic shortcomings. A new initiative can help to address Palestine’s current digital ailments as well as provide job opportunities for the Palestinian youth through the IT sector in Palestine.

TechStart Project Making Waves

The Technology for Youth and Jobs (TechStart) Project will receive funding from a $15 million USD grant from the World Bank. Its mission is to improve Palestine’s IT sector and create more economic opportunities for the youth in Palestine. The project’s end goal is to help the Palestinian IT sector increase the number of high-quality jobs and establish a sustainable economic market for IT-related positions in Palestine. This project directs itself toward the thousands of yearly IT graduates from Palestinian universities who struggle to find jobs after college.

IT Sector Creating Jobs for Youth

According to Kanthan Shankar, the World Bank Country Director for the West Bank and Gaza, IT development aimed at creating job opportunities for young people in Palestine is crucial. This is especially true considering that the youth in Palestine “constitute 30% of the population and suffer from acute unemployment.”

Moreover, IT jobs offer remote positions. During the COVID-19 pandemic, working remotely from home has been necessary for many to remain employed. Another aspect of the project is to draw in investments from foreign companies. By spreading information about the IT sector’s potential and market opportunities, the project hopes that global tech companies will then invest in Palestinian IT firms (equipment, training, etc.) and foster new business relations with these smaller firms.

Despite the fact that these developments for the IT sector in Palestine received authorization last month, Palestine has been continuing to improve its digital economy every year. This project, however, might be the boost necessary to make IT a priority not only for the Palestinian economy but also for young college graduates looking for IT jobs in Palestine.

IT Sector Becoming More Prominent

More familiar career paths such as agriculture or trade have overshadowed the IT sector in Palestine. However, IT is slowly becoming more prominent throughout the Palestinian territories. Between 2008 and 2010, the IT industry in Palestine increased to 5% from 0.8% of GDP. Palestine’s digital growth does not stop there. By 2017, there were 241 tech startup companies in Palestine that were responsible for the creation of 1,247 jobs.

The IT sector in Palestine is still in its infancy, and it will take some time to realize its full potential as a sustainable economic outlet. However, the future of Palestine’s youth and IT sector are promising. Within at least five years, college-educated Palestinian men and women will have more IT employment opportunities than ever before if the project’s goals come to fruition.

– Maxwell Karibian
Photo: Flickr