Archive for category: Global Poverty

Key articles and information on global poverty.

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Poverty, Policy and Pandemic with Johan Swinnen

Poverty Policy and Pandemic
The Borgen Project has published this article and podcast episode, “Poverty, Policy and Pandemic with Johan Swinnen,” with permission from The World Food Program (WFP) USA. “Hacking Hunger” is the organization’s podcast that features stories of people around the world who are struggling with hunger and thought-provoking conversations with humanitarians who are working to solve it.

 

When it comes to ending global hunger, policy plays a powerful role. It shapes the operation and strategy of humanitarian organizations and influences their ability to make an impact. Smart policies enable WFP, for example, to reach even more people with the lifesaving support they need.

That’s why organizations like International Food Policy Research Institute – known as IFPRI – are critical to advancing the fight against hunger. IFPRI provides research-based policy solutions to sustainably reduce poverty and end hunger and malnutrition in developing countries. Its solutions have influenced government and NGO policies across the globe.

As COVID-19 threatens to increase rates of global hunger and poverty, IFPRI’s insights are more critical than ever as governments desperately seek to lessen the virus’ economic impact.

On today’s episode of Hacking Hunger, we caught up with Johan Swinnen, IFPRI’s director general, to get the inside scoop on his predictions of the virus’ impacts, challenges and potential effects, and solutions that might protect vulnerable people from it now and in the future.

Click the link below to listen to what Johan Swinnen’s predictions are regarding the pandemic.

 

 

Photo: Flickr

The Current State of Poverty in Togo

Poverty in Togo
Poverty in Togo is a widespread issue. The nation is one of the world’s top five producers of phosphates, which are widely used in making fertilizers. However, Togo remains poor. Although Togo’s overall economy and GDP have improved in recent years, many worry that the rate of poverty in Togo is not declining fast enough. The disparity is especially notable in Togo’s agricultural sector, in which the majority of Togo’s population has employment. These issues leave many wondering, “What can be done to aid the people of Togo?”

Poverty in Rural Areas

Togo is a presidential republic in West Africa. Formerly known as French Togoland, Togo achieved its independence from France in 1960. A few years later, in 1967, General Gnassingbe Eyadema installed a military rule. After President Gnassingbe’s nearly four-decade-long rule, the military placed Faure Gnassignbe, the son of the former president, into office. Since then, Togo has been moving toward gradual reform of its democratic system. However, the Togolese’s frustration with the slow pace of this reform sometimes results in violent outbursts of political demonstrations.

According to the CIA World Factbook, 55.1% of Togo’s population lived below the poverty line in 2015. Rural poverty is especially concerning as more than half of Togo’s population resides in rural areas. In the World Bank’s estimation, the 2015 rate of poverty was worse for Togo’s rural areas, where 69% of the households lived below the poverty line.

These rural residents, the majority of whom are farmers, make up 65% of the Togolese workforce. Recognizing the vital role that the agricultural sector plays in Togo’s economy, many organizations and experts are focusing on revitalizing Togo’s agricultural sector. According to the Global Agriculture and Food Security Program (GAFSP), a multi-donor trust fund that provides food security in the world’s poorest countries, Togo’s food yields from agriculture have been consistently low.

The Link Between Rural Poverty and Agriculture

The yields of Togo’s major export crops, such as cotton, coffee and cocoa, have been declining for some time. In order to make up for the food deficit, Togo still relies on foreign imports for some basic food items. Upon closer inspection, industry experts stated that some of the barriers to agriculture improvement in rural Togo include:

  • A lack of effective policies that assure provisions of inputs (seeds and fertilizers)
  • Underdeveloped markets for agricultural goods
  • The absence of farming and transportation infrastructure

To address Togo’s rural poverty, GAFSA and the World Bank implemented the Togo Agriculture Sector Support Project (PASA) in 2017. PASA, a $19 million project, aimed to improve Togo’s agricultural output and foster an institutional environment that can encourage agricultural investment. According to GAFSA’s report, PASA brought numerous changes to Togo’s agricultural sector. Under PASA, Togo’s rice yields increased by 30%, farm employment opportunities in rural areas for the youth rose and numerous coffee farms and cocoa farms underwent rehabilitation. PASA rehabilitated 17,174 hectares of coffee farms and 11,578 hectares of cocoa plantations by implementing improved planting materials and improving coffee and cocoa value chains. Reports determined that PASA has helped 877,191 Togolese citizens.

Poverty in Togo has a close relationship with the performance of Togo’s agricultural sector. As the greatest source of employment for Togolese workers, the improvement of Togo’s agricultural sector is paramount to ensure a more stable economic future for Togo. While Togo’s economic potential is becoming a reality through steady improvement, there is still a long road ahead for Togo. The Togolese government and many other international experts recognize the importance of bolstering the country’s economy through the improvement of the agricultural sector. Organizations such as the World Bank and GAFSA are already implementing measures to alleviate poverty in Togo.

Although there are still many improvements that need to occur in agriculture and maintaining political stability, Togo has the ability to lift itself from poverty in the near future.

– YongJin Yi
Photo: Flickr

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The Fight for Quality Healthcare in Tanzania

Healthcare in Tanzania
The percentage of Tanzania’s population living on about $1.90 per day remains at 49.1% as of 2017, according to data from The World Bank. President Benjamin W Mkapa commented on the state of poverty in 2004 stating that ‘‘… the poor must be brought from the margins into the mainstream. The process must be inclusive. The weakest economies and communities need special and differentiated help.’’ President Mkapa shared his thoughts on including everyone in the process for universal aid and healthcare in Tanzania, which stretches from the cities to the rural agricultural communities. His words echoed the thousands of people living in extreme poverty where, like most other countries, their healthcare quality is dependent on wealth, status, location and transportation.

Effects of Poor Healthcare in the Poorest Communities

Masuma Mamdani and Maggie Bangser wrote a literary review in 2004 titled Poor People’s Experiences of Health Services in Tanzania, where they discussed the effects of poor quality of healthcare in Tanzania. Sexual and reproductive health was a major focus, especially with the implications it has for poor women in the region. ‘‘Many [poor women] cannot afford transport costs so they sell their food, borrow, use herbs or just wait to die,” a healthcare worker shared from Mpwapwa.

According to Mamdani and Bangser’s literary review, key barriers to the poor in this region include:

  • The availability of drugs and medicines
  • The shortage of qualified personnel
  • Distance and transport issues
  • Charges
  • Governance

The government has written out and implemented a number of policies, but the issue of inaccessible healthcare for the poorest of the population is still prominent. Today, the United States is working in conjunction with the Tanzanian government to address a multitude of healthcare issues with USAID. For example, the strengthening of Tanzania’s own health system is imperative through supplies, more healthcare workers and supporting finances; but these efforts mostly concentrate within major cities and areas of high population density.

History of Healthcare Legislation

Since the East African country of Tanzania gained independence from Britain in 1961, there have been many ups and downs in the fight for healthcare for all citizens. The Arusha Declaration of 1967 moved towards the nationalization of public services, including medical, but ultimately failed due to economic decline. As the population rose and poverty levels increased through the years, especially in rural communities, even the numerous improvements in health services could barely keep up with the demand.

Healthcare in Tanzania today still does not receive enough funding and is nearly inaccessible outside of major cities. The funds directed towards the health sector have declined from 9.6% in 2014 to 7% in 2018, and the investments do not meet the estimated minimum requirement to guarantee basic health services to the population. There are a number of privatized health care options along with four main insurance programs available to the public, but even so, a large number of the population does not have insurance due to the high costs.

To combat this disparity, Tanzania enacted a Health Sector Strategic Plan from 2015-2020 to gain quality improvement in healthcare, provide equitable access to all and to achieve active community partnership. The Tanzanian government had implemented its fourth strategic plan, building on previously stated actions meaning to expand coverage of health insurance and extend quality health services to the poorer regions. For example, one of the core strategic objectives target the improvement of quality health services through ensuring essential services, a quality rating system, providing adequate staffing, performance management systems and more.

Independent Initiatives in Tanzania

Besides the government legislation that is currently in place and making changes, other independent NGO initiatives are making a difference for healthcare in Tanzania as well. An American initiative, Roads To Life, has dedicated itself to building and improving medical facilities in the Nkololo village, along with constructing roads and funding education. This nonprofit serves a primarily agricultural area with a population of 22,000, addressing the need for quality medical services outside of major cities and transport improvements between towns and regions. Roads To Life has also expanded and renewed the Songambele Health Center, which emerged in 1994. It can now treat up to 560 patients and has a new surgical center. After the addition of new operating suites which opened in 2016, there have been 149 surgical procedures. These new technologies and resources are vital to the health of Nkolo community members, who often had to go to the District Hospital for emergency procedures which was an hour away.

The combination of service and community makes all of the difference in healthcare in Tanzania. Influence from these discussed governmental and independent initiatives is still spreading throughout the country and there is still more work for the country to accomplish in terms of sexual and reproductive health. The efforts that Tanzania has put forth towards universal healthcare and providing quality medical services in more locations is a great push in the right direction to fight the effects of poverty in the poorest regions of this country.

– Savannah Gardner
Photo: Flickr

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Hunger in Israel: NGO and Government Response

Hunger in Israel
Despite being a high-income country, Israel has one of the highest rates of hunger and poverty in the developed world. Many citizens experience hunger and have relied on NGOs to provide food. They are also asking for the government to take further action, especially during the COVID-19 pandemic.

Israel is a small country located in the Middle East with an estimated population of 8.7 million people. Lebanon, Syria, Jordan and Egypt border it. Established as an independent country in 1948, its gross domestic product (GDP) has grown significantly over time. This has made Israel a high-income country.

Food Insecurity in Israel

Despite Israel having the categorization of a high-income country, about 25% of individuals living in Israel experience food insecurity, and up to 40% are living with extreme hunger. According to the Poverty and Social Gaps Annual Report by the National Insurance Institute of Israel, Israel has one of the highest rates of hunger in the developed world. In particular, food insecurity and poverty tend to disproportionately affect:

  1. Orthodox Jewish communities
  2. Arab communities
  3. Single mothers
  4. Elderly individuals
  5. Families
  6. Children

There is adequate food available in the country as a whole. However, there is a notable discrepancy between income levels and nutritious food available. The risk of hunger in Arab and Orthodox Jewish families attributes to potentially larger families and lower employment levels. For ultra-Orthodox Jews, 50% of men and 73% of women do not have employment. Additionally, more than 800,000 children were living in poverty as of 2016. This has resulted in almost one-third of Israeli children experiencing hunger on a regular basis.

The Response of the Israeli Government

In response to hunger in Israel, nonprofit organizations have taken the large responsibility to provide for people in the country. On the other hand, the response of the Israeli government in regard to this issue has left many dissatisfied.

In an interview with Channel 12 in Israel, Minister Tzachi Hanegbi made controversial remarks. He said people in Israel who claim to struggle with food insecurity are talking “nonsense” and are not actually starving. He has since apologized, stating that he intended to convey that “[his interviewers’] extreme and gross criticism of the government creates fear amongst the public, instead of hope,” and that “the government that I am part of works day and night to put Israel back on the track of a healthy and flourishing economy.” Hanegbi’s initial comments have caused public disbelief and outrage in Israel and around the world.

Response of NGOs

Recently, the COVID-19 pandemic has introduced new economic hardships that further complicate efforts to reduce inequality and provide adequate food. Many expect that a major food crisis will occur as a result of the pandemic. GDP in the country has fallen 1.7% in the first quarter of 2020, while it had previously been rising.

As a result, there has been an increasing reliance on NGOs. Leket Israel, the largest food rescue program in the country, fed over 175,000 people in need before the COVID-19 pandemic. In response to the pandemic and resulting economic situation, it began a new program that delivers food directly to homes. With this program, it sent over 700,000 meals to people, many of whom never needed food assistance before the pandemic.

Other NGOs like Latet and Mazon made significant impacts regarding combating hunger in Israel and providing food to lower-income citizens. Latet is a large NGO that fights food insecurity in Israel and is partnered with 180 other local organizations in the country. It provides monthly assistance to 60,000 families, according to its website.

Policies and Government Efforts

The amount of policies toward the reduction of poverty has increased by 3.4% in 2016 in comparison to the previous year. This demonstrates the importance of continued governmental support.

The Israeli Forum for Sustainable Nutrition has been campaigning for changes toward better nutrition, improved health and environmental sustainability. Some of its projects include creating a data center for public use about nutrition and the environment, counseling municipalities, advancing research and holding the government accountable for advertising misinformation about food and the environment. It holds annual conferences and has had over 60 professional seminars with government officials, policymakers, academic experts and others.

In 2017, there was an increase in the minimum wage. It went from NIS 5,000 per month at the beginning of the year to NIS 5,300 by the end. In addition, in 2016, 80% of households had employment. This has resulted in a reduction in poverty and hunger for elderly individuals, Arab communities and immigrants in Israel. However, since COVID-19, unemployment has again increased within a month from under 4% to nearly 25% in April 2020 and leaving more than 1 million people without jobs. While there is continual progress, the government still relies mostly on NGOs and third-party organizations. Overall, more change must occur to improve the issue of hunger in Israel and support a more balanced world.

– Sydney Bazilian
Photo: Unsplash

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Organizations Improving Healthcare in Somalia

Many challenges come with being one of the poorest countries in the world. In Somalia, a country located on the Horn of Africa, garnering a quality healthcare system for everyone is a major struggle. With a population of over 12 million, the people of Somalia have one of the lowest life expectancies in the world. Grappling through years of civil war and natural disasters, it has been difficult to overcome widespread disease, malnutrition and an overall lack of healthcare resources. Thankfully, organizations have noticed the absence of a healthcare system and many efforts are going towards improving healthcare in Somalia.

United Nations Development Program

According to the United Nations Development Program (UNDP), 58% of Somalis are without healthcare. Recognizing this issue, the UNDP set the goal to have complete universal healthcare in Somalia by 2030. Since the COVID-19 global pandemic, the UNDP has realized how destructive a pandemic can be in all facets of life in a developing nation. In addition to the goals for universal healthcare, it aims to set up structures to strengthen resilience to any future disasters. The UNDP created a blueprint proposing a multi-step initiative to improve healthcare and ensure that it does not leave anyone behind. The program would provide basic healthcare consisting of two tiers of costs and services to choose from. However, the core service will involve the implementation of telemedicine. This will be an immense advancement, considering that most Somalis have to walk miles to get to their nearest healthcare facility.

The UNDP has also been addressing HIV/AIDS issues in the country since 2004. It has implemented investment programs totaling $5.4 million between 2005 and 2009. Its work includes creating knowledge and awareness programs, increasing testing for Somalis and lobbying for HIV/AIDS legislation. The impact of the program’s efforts is notable. As of 2019, there were approximately 11,000 children and adults living with HIV in Somalia in comparison to the approximate 22,810 in 2008.

For immediate attention to the fight against COVID-19, the UNDP is supporting an emergency call center that the Somali government runs. The UNDP contributed by offering transport to volunteers, office equipment and staff. Anyone needing advice on COVID-19 or feeling ill can simply call the center and find assistance from volunteers comprising of medical students, doctors and other health professionals. Additionally, if a patient has severe symptoms or is sick with underlying health conditions, an ambulance can transport them to their local hospital. The center helps roughly 8,000 people a day.

The World Health Organization (WHO)

The World Health Organization (WHO) pledged to assist health authorities in Somalia in increasing the number of healthcare workers and stabilizing primary healthcare services in the country. In September 2019, the organization assisted in launching the plans for universal health coverage (UHC) for the time period of 2019-2023. The WHO understands the importance of improving health systems in the country and hopes to develop powerful health systems to prevent future epidemics. Thus, the UHC initiative aims to give all Somali people improved protection from healthcare emergencies.

The WHO has declared maternal health one of its priorities and advocates for maternal health as a human right. About one in 20 women die during labor due to an overall lack of health resources, which gives Somalia one of the highest maternal mortality rates in the world. The WHO is bolstering investments in the issue, mobilizing health resources and strengthing healthcare systems to decrease maternal mortality rates.

UNICEF

UNICEF is also fighting to improve healthcare in Somalia. One focus has been to develop safe motherhood and child healthcare programs. The organization worked with Somali health authorities to provide the Essential Package of Health Services (EPHS). Predictions determine that these packages will aid 4.2 million Somalis. The EPHS structure is an extensive range of free health services that will help establish a medical standard for the country. The goal is to provide essential medicines, supplies and equipment as well as train and expand human resources. The program includes aid for neonatal and reproductive health, child immunizations and treatment of widespread diseases like HIV.

Somalia has one of the highest child mortality rates in the world. Due to the lack of sanitation, medical resources and vaccinations, one in seven children will not make it past age 5. Since 1990, deaths among children under 5 have reduced by half. Deaths have decreased thanks to the vaccine initiative that UNICEF and WHO launched in 2013. The program consisted of 1.3 million doses of an innovative “five-in-one” vaccine for the prevention of the top fatal childhood illnesses along with a parental awareness campaign.

The Integrated Community Case Management (ICCM) that UNICEF and WHO organized has also improved healthcare systems. This community-based approach brings experienced and supervised health professionals to the area to help decrease the common childhood illnesses contributing to the high child mortality rate. The system plans to continue developing a solid staff of health leaders and administrators to manage future health disasters.

Moving Forward

Some organizations are making great progress in improving healthcare in Somalia. Since the efforts to create an overall healthcare infrastructure, the country has seen improvements in how it controls widespread diseases. In 2004, the average life expectancy was 50, but as of 2018, it was 55. Life expectancy should increase as chronic malnutrition, infant mortality rates and the spread of preventable diseases decrease with improved healthcare systems. Thanks to these resolutions, overall health and wellbeing in Somalia should be on the horizon.

– Tara Hudson
Photo: Pixabay

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Poverty in Tanzania: Problems and Progress

Poverty in Tanzania
Tanzania is an East African nation, recognized for its national parks and attractions, and home to some of Africa’s highest mountains. Although Tanzania gains from its tourist attractions, the nation is considered one of the world’s poorest economies. Poverty in Tanzania is severe — 36% of the population lives below the poverty level. However, in recent years, Tanzania has improved its economy. According to the World Bank’s poverty analysis, Tanzania has maintained economic growth and a decline in its poverty rate. Additionally, new opportunities could potentially be positive for changes and reforms.

Education

The Tanzanian government works to improve access to water, education and health services. To combat poverty in Tanzania, the government and several organizations have chosen education to emphasize. Since 2016, Tanzania has implemented a fee-free basic education policy which has increased enrollment and decreased the number of out of school children. Two parts of the policy include:

  1. A commitment to providing 12 years of free and mandatory basic education to the whole population.
  2. A mandate to expand technical and vocational education and training. Thus, increasing the number of skilled human resources and becoming a semi-industrialized middle-income country by 2025.

Additionally, the World Bank established the Secondary Education Quality Improvement Project (SEQUIP). SEQUIP aims to provide children in Tanzania safer and more accessible secondary education, thus improving the country’s human capital. The project also strives to increase opportunities for girls and reduce teen pregnancy and marriage.

The Tanzanian government and World Bank understand that by improving education and creating opportunities for girls, they contribute to economic growth.

Health Care

Aside from major economic growth in the past decade, not everyone in Tanzania has benefited. Poverty in Tanzania persists, with nearly much of the population living below the income poverty line of $1.90 per day. The Abbott Fund has contributed to developing sustainable improvements in the quality of testing, treatment and health care across Tanzania. The Abbott Fund is responsible for improving infrastructure and technology at healthcare facilities. The organization also seeks to address critical issues surrounding HIV/AIDS, such as providing aid to orphans and vulnerable children. Additionally, the Abbott Fund has contributed to the following areas of need:

  • Provided nutrition and income to the residents of Mkinga by donating 300 dairy cows, and started farming and poultry co-ops throughout Tanzania.
  • Trained more than 5,000 paralegal volunteers to resolve more than 80,000 paralegal cases surrounding the protection of women and children’s rights.
  • Enrolled more than 1,000 families in community health insurance.
  • Built schools for vulnerable children and allocated millions in grant funding to execute community-development activities.

Poverty in Tanzania perseveres, and economic growth has not been evenly distributed. Real transformation needs to occur on a government level to ensure everyone gains from the continued growth. According to Nadia Belhaj Hassine Belghith, Senior Economist and co-author of the 2019 Tanzania Mainland Poverty Assessment, “along with the reduction in poverty, the country is showing signs of a structural transformation.” Lastly, Tanzania should invest in human capital and skills development while increasing job opportunities for key sectors that promote advancement. By investing in people, Tanzania can reach economic growth that provides for everyone, and not just the ones in power.

– Mia Mendez
Photo: Flickr

Poverty in the US Virgin Islands

U.S. Virgin IslandsThe U.S. Virgin Islands’ (USVI) tourism industry was just beginning to recover from back-to-back hurricanes Irma and Maria, which swept through the island in 2017. Its economy—including schools, hospitals and hotels—was just starting to rebuild and reopen. The aftermath of these hurricanes coupled with the coronavirus leaves the USVI ill-prepared for the financial woes of a lagging travel season. However, additional aid and outside support are alleviating the USVI economy.

Home to roughly 105,000 people, the USVI’s population faces an unknown level of poverty; the most recent data fails to account for the hurricane destruction. It was last reported in the 2010 U.S. Census Bureau that 22% of the USVI population lived below the poverty line. However, it is likely that the estimate has risen since the hurricanes and will continue to rise due to global economic impacts from the pandemic.

A High Price for Paradise

Located off the east coast of Puerto Rico and Miami, Florida, the USVI is dependent on the outside world. The island welcomes cruises and flights filled with tourists to its resorts and imports most of its food and supplies. Only 2% of the USVI’s gross domestic product (GDP) comes from agriculture, compared to 20% of its GDP generating from industries that include tourism.

But for islanders, the imbalance between these two markets further contributes to a high cost of living and financial insecurity in the U.S. Virgin Islands. Importing food is costly for USVI citizens. In order to make repairs from the hurricane destruction to buildings and homes, supplies must also be imported. Despite the high cost of living, incomes in the USVI are lower than in the U.S.—about 25% lower than the U.S.’s median income; workers in tourism industries are paid low wages.

Due to travel restrictions from the coronavirus, the global tourism industry is predicted to lose between 850 million and 1.1 billion tourists this year, placing over a hundred million jobs at risk. The unemployment rate already sits at nearly 11% in the USVI; this event is likely to place greater pressure on an already stretched-thin economy.

In the aftermath of the hurricanes, the USVI’s health care system has also developed a dependency on the mainland. Due to the lack of patient beds, facilities and a dwindling nursing staff, some patients have to fly to the U.S. for surgical procedures. This becomes another factor that increases the cost of living for some residents. Fortunately, USVI hospitals have not had high coronavirus cases. The Virgin Islands Department of Health has reported only 156 active coronavirus cases and six deaths.

Child Development in the U.S. Virgin Islands

According to the U.S. Virgin Island’s 2016 Kids Count Data Book, 37% of children live in families below the poverty level. Examining single-parent households, single mothers are more at risk of falling into poverty, representing 76% of all families in poverty.

Impoverished conditions significantly impact the education of children. Although many children come from poor families, school is no longer an escape from their everyday reality. NPR reported in 2019 that education facilities damaged by the 2017 hurricanes were still unrepaired, inhibiting students from moving forward in their education.

Students are either learning in hazardous building conditions or attending half-day sessions. As a result, teachers have reported that their students have fallen behind academically despite how the USVI education system was already struggling before the hurricanes hit.

According to a 2014 academic assessment test for USVI public schools, upon completing a literacy assessment, 59.4% of USVI students performed below the test standard. As for the Mathematics assessment results, 74.1% of students were below the test standard. Now, the coronavirus is likely to further prolong the pause on its children’s education.

The Good News

Progress in recovery and rebuilding has continued in the USVI, but full economic recovery is still years away. The USVI government estimates it will need $7.5 billion, almost twice the territory’s GDP, to rebuild the U.S. territory.

All Hands and Hearts, a non-government organization that dispatches volunteers to areas ravaged by natural disasters, sent nearly 2,000 volunteers to the USVI to restore homes and schools damaged by Hurricanes Irma and Maria. On the USVI island St. John, the volunteers’ work positively impacted 24% of the island. In July 2019, the U.S. Virgin Islands disaster relief program marked its completion by leaving behind structures built to outlast upcoming storms.

In addition, the Federal Emergency Management Agency (FEMA), which has been providing aid to the U.S. Virgin Islands since the 2017 hurricanes, is continuing to support the USVI. Just this past January, FEMA approved over $2 billion in Public Assistance funds for the USVI. It will be used to restore homes and hospitals damaged by the hurricanes in 2017.

 

– Grace Mayer
Photo: Wikimedia

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The Impact of the Afghanistan Relief Organization

The Afghanistan Relief Organization is a nonprofit based in the United States that provides aid and education to underprivileged people in Afghanistan. Afghans Abdul Satar and Aboul Fazil Khalili founded the organization in California in 1998. It is operated primarily by volunteers, including both Afghans and Americans, and is non-political and non-religious. In addition to providing direct aid, the organization promotes self-sufficiency in Afghanistan with its educational programs. The Afghanistan Relief Organization has impacted the lives of thousands of impoverished Afghans.

Direct Aid

Afghanistan is one of the most impoverished countries in the world. Over 40% of the population lives below the poverty line. Many more live just above the poverty line and are extremely vulnerable. In order to diminish the effects of poverty, the Afghanistan Relief Organization provides direct aid to thousands of Afghans. This aid includes food, school supplies, hygiene supplies, medicine and winter clothing. Many Afghans do not have stable access to these resources without the aid of an NGO like this one. By giving these supplies directly to people in need, the organization is able to improve the lives of countless impoverished Afghans.

Changing Lives With Education

Another service provided by the Afghanistan Relief Organization is education, which is available at its Technology Education Center in Kabul. This school provides free classes for children and adults, and has had thousands of students since its creation in 2003. The classes teach things like English, computer skills, physical education and job training. The instructors and staff at the school are willing to work for small salaries. As a result, the Afghanistan Relief Organization is able to use the majority of its funding to provide educational resources for the students.

The Afghanistan Relief Organization has also created a series of women’s literacy classes. In Afghanistan, there is a large gender disparity in education, and many women lack basic literacy. These classes give women an opportunity to develop the crucial literacy skills they need to support their families. There are multiple levels of classes available, and the organization also provides $50 per month for its students as support.

Celebrity Support

A wide range of celebrities have publicly supported the Afghanistan Relief Organization, including Jake Gyllenhaal, Benicio del Toro, Halle Berry and Richard Gere. In addition to providing financial support, these celebrities use their fame to give publicity to the organization. This helps mobilize more volunteers and donors. In 2007, the organization held an auction of traditional Afghan kites to raise funds. Celebrities such as Angelina Jolie, Will Ferrell and Natalie Portman signed some of these kites to increase their values. Support from celebrities like these has greatly helped the Afghanistan Relief Organization’s ability to fundraise and have a greater impact.

Afghanistan faces many problems due to its extreme poverty, and many Afghans do not have access to the resources they need. However, the Afghanistan Relief Organization has improved the living conditions of countless Afghans. The education that the organization provides, through its Technology Education Center, helps thousands of students. The Afghanistan Relief Organization is able to function due to the devotion of its instructors and staff who work for small salaries, as well as celebrities who continue to support the organization’s efforts.

– Gabriel Guerin
Photo: Needpix.com

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Poverty in Kazakhstan is Like a Small Business

Poverty in KazakhstanPoverty in Kazakhstan compares to what small businesses around the world face now that COVID-19 has changed the game. Kazakhstan is not a developing country. It is not a top player in the international market either. It is somewhere in between. And with the new and confusing world that we live in now, Kazakhstan is going to have a difficult time maintaining its good trade relations.

Kazakhstan is Like a Small Business

COVID-19 has thrown the plight of small businesses around the world into the spotlight. Now more than ever people are realizing the struggle of small businesses to stay afloat during a pandemic among other larger businesses. Poverty in Kazakhstan is like a small business. It has been making headway in the global market, but now that the pandemic has hit, its economy will struggle to stay afloat among the other major players in the world economy, an economy that goes under spells with poverty in Kazakhstan for many of its citizens. With the GDP per capita increased by a factor of six, poverty in Kazakhstan has decreased. But, this upward trend may not hold if the pandemic continues to restrict the country’s international trade. According to the Asian Development Bank, Kazakhstan’s poverty rate is 4.3%.

The US–Kazakhstan Relations

Trade relationships and federal direct investments are a key part of success for small countries like Kazakhstan. The U.S.–Kazakhstan relations have been thriving in past years, having signed the U.S.–Kazakhstan Bilateral Investment Treaty and the Treaty on the Avoidance of Dual Taxation. And this has improved Kazakhstan’s economy tremendously; in 2006, Kazakhstan became a part of the upper-middle-income bracket instead of the lower-middle-income bracket. Trade makes up 60.6% of Kazakhstan’s GDP. Federal direct investments allow for the country to focus on its largest economic contributors: mining and manufacturing.

A major country recognizing a state’s independence is a colossal benefit to a rising state, and that is exactly what the U.S. did for Kazakhstan when it was the first country to recognize its independence. The U.S. set up an Embassy and a Consulate General in Kazakhstan. Now that Kazakhstan has excellent relations with countries of the east and the west, perhaps it will be able to maintain its footing in the global economy. Kazakhstan has excellent relations with Russia, the Middle East and Asia and is completing its term on the Security Council of the U.N. These are great strides, but the progress that Kazakhstan’s economy has made may backslide because of the restriction that the pandemic has imposed on so many countries.

The Impact of COVID-19

 The World Bank has stated that “If the pandemic continues to spread and the external economic environment deteriorates further, GDP could contract by as much as 3 percent in 2020, which would significantly increase the poverty rate.” Two of its major cities – Almaty and Nur-Sultan – are already inaccessible outsiders. Large corporations have been unable to get loans because the banks are too afraid that they will not pay them back. The deficit has already grown to 3.3% of the GDP as of 2019.

Here is a look at Kazakhstan’s predicted future in 2020:

  • There could be a 0.8% drop in GDP because of decreasing demand from foreign consumers and “COVID-19 mitigation measures sap[ping] consumer demand and investment.”
  • Predictions have determined that 6% of the GDP will increase the deficit because of the aforementioned trade decline and the fact that the price of oil will be lower.

In conclusion, Kazakhstan has become a thriving market over the years. It has excellent trade relations in almost every part of the world and its poverty rate has reduced due to a bolstering in the economy. COVID-19 is affecting every country, though, and Kazakhstan is particularly vulnerable because its economy was still growing, and now may see regressions.

The situation in Kazakhstan is not all bad, though. The U.S., along with USAID, is contributing to a relief fund that will give Kazakhstan $800,000. This money will go towards fighting the virus by preparing labs, tracking down cases, etc. Though the world is certainly not perfect, it is heartening to see the quick and unencumbered responses of countries to help each other.

– Moriah Thomas
Photo: Pixabay

Combating Hyperinflation in Zimbabwe

Hyperinflation In ZimbabweThe southern African country of Zimbabwe has one of the most horrendous track records regarding hyperinflation. Hyperinflation, which is when the prices of goods and services rise uncontrollably, usually occurs when a government prints more money into the money supply than what can be supported by the country’s economic activity. Hyperinflation in Zimbabwe has had the effect of lowering GDP per capita by 38% and increasing the unemployment rate to more than 70%, which in turn has increased poverty. Zimbabwe has tried many different solutions to stabilize its inflation rate, but it still struggles with high inflation rate volatility. In May 2020, the inflation rate was at 785.55%, well over the defined amount of 50% to be considered hyperinflation. This article explains Zimbabwe’s political and economic situation that led to its hyperinflation, and possible tactics to combat it.

Rampant Corruption and Mugabe’s Regime

Robert Mugabe governed Zimbabwe in 1980 to 2017 after the country had gained independence from Great Britain. Mugabe had been a Socialist revolutionary icon who was elected as president after the revolution but later regressed into an oppressive dictator. Mugabe’s tight grip on power, rampant corruption and monetary policies of his regime are some of the principal causes of Zimbabwe’s economic problems. After almost four decades in power, Mugabe was usurped from power. He was replaced by his longtime vice president, Emmerson Mnangagwa in 2017. Mnangagawa’s presidency has maintained power for the country’s ruling party: the Zimbabwe African National Union-Patriotic Front (ZANU-PF). Throughout both administrations, corruption has been embedded throughout all levels of society, including much of Zimbabwe’s political institutions. Bribes and facilitation payments are commonplace among the police, private companies, local councils and public officials. These kinds of payments are responsible for the $1 billion dollars of public money that Zimbabwe loses every year.

The 2009 Hyperinflation Crisis

During the worldwide recession of 2008, Zimbabwe’s own financial crisis made the country’s inflation rate skyrocket astronomically. Mugabe’s policies regarding land redistribution from white commercial farmers to the majority black population had the undesired effect of widespread food shortages and economic sanctions from the U.S. and E.U. Hyperinflation then reached incomprehensible rates of 79.6 billion percent. While these events are claimed by the ZANU-PF to be the initial causes of Zimbabwe’s hyperinflation, every effort Zimbabwe has taken to control hyperinflation is held back by the status-quo of corruption that the ZANU-PF upholds.

The root economic causes of Zimbabwe’s hyperinflation lies within monetary policies that make the Reserve Bank of Zimbabwe (RBZ) print too much money. Some ways the government has tried to curb inflation have included demonetizing the Zimbabwean dollar in 2009 and adopting many different currencies, including the US dollar, South African Rand, Euro, Chinese Yuan and more. This allowed for higher transparency, which led to deflation. Over the next decade, the U.S. dollar became more scarce. This led to the reintroduction of the Zimbabwean dollar in 2019, bringing back high levels of hyperinflation. Some experts say that a radical change in the financial system as a whole is needed to properly address this trend. In particular, changing the system from having a dissatisfactory central bank to a currency board or free banking system could allow for better monetary policy.

Non-Governmental Institutions Helping the Situation

Certain NGO’s are working to combat Zimbabwe’s corruption and financial issues. Two are Transparency International Zimbabwe and Zambuko Trust.

Transparency International was established in 1993 and currently works in more than 100 countries. They research and advocate for policies and laws to end systemic corruption. They provide statistical data such as the corruption perceptions index and the global corruption barometer and also provide information on the state of corruption and their activities through their own blog, magazine and academic publications. Transparency International and other civil society groups across the continent have become serious actors in the fight against corruption and the loss of public money from it.

Zambuko Trust is a microfinance institution that has given financial opportunities to many, especially those who work in the informal sector. It was established in 1990 by Christian businessmen who set out to provide financial services for the poor. They provide small business loans, horticulture funding and agricultural jobs, business management training, advisory services and loan insurance. Zambuko Trust provided services to 16,000 people before the hyperinflation crisis of 2009. After the country demonetized the Zimbabwean dollar and introduced multiple currencies, the institution was able to revive itself. These services have allowed businesses to sustain themselves and people to buy a house or afford schooling during such periods of economic strife.

While Zimbabwe’s financial institutions are scrambling to bring this recent wave of hyperinflation under control, NGO’s are able to combat the effects economic turmoil has on small businesses and the poor and advocate for a society free of corruption.

– Tirza Morales
Photo: Flickr