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Archive for category: Global Poverty

Key articles and information on global poverty.

Education, Global Poverty

New Online Business School Launched in Nigeria

New Online Business School
In July 2019, business coach and trainer Tricia Ikponmwonba launched a new online business school called Business Lab Africa (BLA), which provides qualitative and relevant knowledge for growth in the business field to entrepreneurs from around the world. Ikponmwonba, who has trained over 20,000 entrepreneurs across 10 different countries and has worked with multinational corporations such as Nokia, Coca Cola and Wrigley’s, is not offering the course content for free. The monthly subscription for either of its categories (for growing businesses and for established businesses) is very cheap, however.

Course Topics and Accessibility

Business experts from all over the globe teach the BLA’s courses, which people can access via mobile applications as well as the school’s website. Classes range from marketing and management to finance and business structure, and each month, the courses offered focus on one particular area of study for each type of business. In-depth explanatory videos that instructors recorded and live classes with field experts supplement these focus areas. They also include worksheets and templates geared towards helping students retain the material that they are learning.

The new online business school also uses peer-to-peer learning techniques in its online community where students can collaborate with each other. This is a major cornerstone of the program, as it stresses the importance of students being able to share ideas and techniques with each other, which can help students learn quicker and more efficiently. BLA also places a special emphasis on updating the quality and content of its program regularly to fit the current work environment. This is an important aspect of the program because the business world is always changing and many individuals and businesses must continue to learn new skills in order to succeed.

Positive Testimony

The fact that there are already numerous success stories from individuals who have taken classes from the BLA is a testament to the quality of the courses. Boyede Adebanjo, who is the Director of Administration at an elementary school in Nigeria, claims that the classes she took—Business Structure and Customer Service—gave her, along with her colleagues, insightful knowledge as to how to work on and improve the school’s five-year business strategy and overall business structure. Since these enhancements, Adebanjo has seen major improvements in worker productivity, which has helped improve the quality of education that the school can offer young children.

Looking Ahead

By 2022, the BLA hopes to have reached 100,000 entrepreneurs, giving each the knowledge and tools that they will need to succeed in the business world. While the company is not yet certified, it likely will be in the near future as it continues to produce results for its clients. All said it seems clear that this new online business school will continue to progress in a positive direction in the coming years.

– Jillian Rose
Photo: Flickr

 

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-23 10:09:472019-11-21 13:13:46New Online Business School Launched in Nigeria
Foreign Aid, Global Poverty, United Nations, USAID

The Effects of the US Foreign Aid Freeze

The U.S. Foreign Aid Freeze
On August 3, 2019, the White House Office of Management and Budget (OMB) ordered two federal agencies to temporarily freeze billions of foreign aid funding. This decision ordered the State Department and the United States Agency for International Development (USAID) to provide accounts for all unobligated resources of foreign aid. Rachel Semmel, a spokeswoman for the Budget Office, said the order aims to ensure accountability. According to the Associated Press (AP), the letter lists 10 areas that the U.S. foreign aid freeze targets, including development assistance, global health programs and United Nations peacekeeping. In total, the freeze puts $2 billion to $4 billion of congressionally-approved funding on hold.

Subsequent Response

The U.S. foreign aid freeze has met with bipartisan criticism. Chairman of the House Foreign Affairs Committee, Rep. Eliot Engel said that the Trump administration has amounted to contempt and emphasized that congressionally-approved foreign aid is law and backed by the Constitution. Sen. Lindsey Graham’s criticism was harsher, labeling the freeze insane. In a letter to the OMB, lawmakers from both parties agreed that cutting foreign aid and development spending would not be in the interest of national security.

Critics of the OMB’s decision point to the fact that foreign aid spending makes up less than one-tenth of 1 percent of the federal budget. Before the freeze, the U.S. spent $30 billion annually on programs to reduce global poverty. Liz Schrayer, the chief executive of the U.S. Global Leadership Coalition, claims the OMB is cutting one of the smallest portions of the federal budget, but one that could have catastrophic impacts on U.S. economic and national security interests.

Impacted Countries

The U.S. foreign aid freeze will directly affect Malawi, one of the world’s least developed countries. The nation consistently ranks very low in various health indicators, such as life expectancy, infant mortality rate and maternal mortality rate. In addition, an estimated one million people or 9.2 percent of adults in Malawi live with HIV/AIDS with an estimated 13,000 deaths annually. In Malawi, USAID works to improve the quality of life by supporting development, education and health programs, especially those that prevent and treat malaria, tuberculosis and HIV. Due to the Trump administration’s order, Malawi may not have aid for the remainder of this financial year. According to documents that Foreign Policy obtained, the freeze could also affect foreign aid to countries in Africa, Asia and the Middle East.

Funding for UNICEF projects to protect children account for a large portion of the U.S. foreign aid freeze. One of these programs involves early childhood education and development in Uzbekistan. According to UNICEF, only 30 percent of Uzbek children attend preschool while 70 percent are unable to achieve their full potential due to a lack of early education. UNICEF is rolling its program out across six regions in Uzbekistan and it has designed it to increase access to quality education for children. Regional instructors have trained 2,159 preschool teachers in child-centered learning and model schools, which have increased enrollment by 2,841 children. The U.S. foreign aid freeze will have a direct impact on similar programs across the globe.

Bipartisan Solution

On August 15, 2019, the OMB sent an official rescission request to the State Department to cut foreign aid funding by more than $4 billion, yet canceled the request a few days later. Since taking office in 2017, the Trump administration has made numerous attempts to cut foreign aid funding, and in some cases by as much as 30 percent. Members of both parties in Congress firmly rejected all attempts. Daniel Runde, former director of the Global Development Alliance (GDA) in the Bush administration, says development, diplomacy and defense experts are in full agreement that the Trump administration should work collaboratively with Congress to create a more robust and sustainable approach to foreign aid and development.

– Adam Bentz
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-23 09:32:302024-05-29 23:12:22The Effects of the US Foreign Aid Freeze
Global Poverty, Malaria

Efforts to Fight Disease in the DRC

Fight Disease in the DRC
With 80 million hectares of arable land and over 1,100 precious metals and minerals, the Democratic Republic of the Congo has quickly established itself as a large exporter in the lucrative diamond industry. Despite this, the DRC ranks 176th out of 189 nations on the UN’s Human Development Index and over 60 percent of the 77 million DRC residents live on less than $2 a day. Internal and external war, coupled with political inefficacy and economic exploitation, has hindered the country’s ability to combat poverty and improve health outcomes. Listed below are some of the most deadly diseases that are currently affecting individuals in the DRC and the different strategies that governments and NGOs have taken to fight disease in the DRC.

3 Deadly Diseases Currently Affecting Individuals in the DRC

  1. Malaria

The DRC has the second-highest number of malaria cases in the world, reporting 15.3 million of the WHO-estimated 219 million malaria cases in 2017. Of the more than 400 Congolese children that die every day, almost half of them die due to malaria, with 19 percent of fatalities under 5 years attributed to the disease. However, some are making to reduce malaria’s negative impact.  For example, the distribution of nearly 40 million insecticide-treated mosquito nets, or ITNs, has helped lower the incidence rate by 40 percent since 2010, with a 34 percent decrease in the mortality rate for children under 5. The DRC government procured and distributed the nets with international partners such as the Department for International Development, Global Fund and World Bank. In addition, the President’s Malaria Initiative, a program implemented in 2005 by President Bush and carried out by USAID, has distributed more than 17 million nets. UNICEF has also been a major contributor in the efforts to fight malaria and recently distributed 3 million ITNs in the DRC’s Kasaï Province. However, the country requires more work, as malaria remains its most frequent cause of death.

  1. HIV/AIDS

Among its efforts to fight disease in the DRC, the country has made significant progress recently in its fight against HIV/AIDS. As a cause of death, it has decreased significantly since 2007, and since 2010, there are 39 percent fewer total HIV infections.

This particular case illuminates the potential positive impact of American foreign aid. The DRC Ministry of Health started a partnership with the CDC in 2002, combining efforts to fight HIV/AIDS. PEPFAR, signed into U.S. law in 2003 to combat AIDS worldwide, has invested over $512 million since 2004, which has helped to fund antiretroviral treatment for 159,776 people. In 2017, it funded the provision of HIV testing services for 1.2 million people.

The country is also addressing mother-to-child transmissions. In the DRC, approximately 15 to 20 percent of mothers with HIV pass the virus onto their child. The strategy to end mother-to-child transmissions involves expanding coverage for HIV-positive pregnant women, diagnosing infants with HIV earlier and preventing new infections via antiretroviral drug treatment. UNAID, The Global Fund and the DRC Ministry of Health have undertaken significant work to accomplish these objectives and their efforts have resulted in the coverage of 70 percent of HIV-positive pregnant women.  However, much work remains to cover the remaining 30 percent of pregnant HIV-positive women.

Overall, there is still a lot of necessary work to undergo in the fight against HIV/AIDS in the DRC and around the world.  In total, UNAIDS estimated that HIV/AIDS was the cause of 17,000 deaths in the DRC in 2018.  While this is a decrease from previous years, it shows that the DRC still has a long way to go in order to fully control the spread of the disease.  Additionally, there must be more global funding. The U.N. announced on July 2019 that annual global funding for fighting HIV/AIDS decreased in 2018 by almost $1 billion.

  1. Ebola

Since 2018, the DRC has undergone one of the world’s largest Ebola outbreaks. On July 17, 2019, WHO declared the outbreak an international health emergency. Since August 2018, more than 2,500 cases have occurred, with over 1,800 deaths.

However, the country is making efforts to prevent the transmission and spread of Ebola in the DRC.  Recently, more than 110,000 Congolese received an experimental Ebola vaccine from Merck & Co. The vaccine is called rVSV-ZEBOV, and studies have shown the vaccine to have a 97.5 percent efficacy rate.  This vaccine provides hope that people will be able to control Ebola breakouts in the near future.

While there have been attempts to fight disease in the DRC in recent years, such as malaria, HIV/AIDS and Ebola, each disease remains a major issue. In the coming years, the country must continue its efforts.

– Drew Mekhail
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-23 07:44:072024-05-29 23:11:02Efforts to Fight Disease in the DRC
Developing Countries, Development, Global Poverty

4 Microlending Organizations that Empower the Poor

Microlending Organizations
In the fight against global poverty, one hot-button issue is how to provide aid without the implication of paternalism, the idea that one person or group knows the interests of another group better than that group knows its own interests. Tariq Fancy, the founder of the nonprofit The Rumie Initiative, recalls hearing a Kenyan relative’s view on problems with international aid, saying “don’t walk in assuming that from your perch in North America you figured out all the answers for Africa.” Putting resources and power in the hands of communities both provides aid and acknowledges that they can make decisions about local interests. Microlending organizations have the power to do just that

Microloans are small loans at low-interest rates. Individuals living in poverty often have difficulty securing loans from traditional financial institutions due to a lack of borrowing history and assets to use as collateral. Even when people can get loans, interest rates are often high. People often use microloans to finance small businesses in their early stages, enabling people to overcome barriers and progress toward lifting themselves and their families out of poverty.

Microlending organizations can also issue loans for community projects, like building wells or funding schools. Microlending organizations typically, but not always, issue loans funded by individuals rather than by banks or other financial institutions. Here are four companies and organizations that use microlending in different forms to empower people living in poverty.

Four Microlending Organizations that Empower the Poor

  1. Kiva: Kiva crowdfunds loans from people around the world and uses partners to issue them. The nonprofit has enabled the funding of more than $1.33 billion in loans. Kiva emerged in 2005 and has partnerships with financial institutions throughout the world, where it transfers the crowdfunded money. The local field partners then loan money to Kiva’s lenders. Kiva has a 96.8 percent repayment rate and operates in 78 countries. On Kiva’s website, lenders can sort loans by region or category, such as agriculture, women and eco-friendly.
  2. Zidisha: Zidisha is the first direct person-to-person microlending service that focuses on entrepreneurs and job creation. Its name” comes from the Swahili word meaning “grow.” Unlike Kiva, Zidisha does not loan through financial institutions but facilitates direct lending between people. Zidisha’s loans total more than $16 million and have financed more than 240,000 projects.
  3. Building Resources Across Communities: Building Resources Across Communities (BRAC) is the largest non-governmental development organization in the world in terms of number of employees. Hasan founded BRAC in 1972 and it employs more than 120,000 people in 11 countries. BRAC has a microfinance program, primarily in Bangladesh, which has loaned to 5.6 million borrowers, 87 percent of whom are women. Unlike Kiva and Zidisha, which operate person-to-person lending services, BRAC distributes loans to lenders on its own using donations and other funds. BRAC also does work unrelated to microfinance, investing in schools and in water, hygiene and sanitation services.
  4. Women’s Microfinance Initiative (WMI): Women’s Microfinance Initiative (WMI) began issuing loans in 2008 and trains local women in managing loan hubs. WMI has loaned more than $4.5 million to rural women in amounts of $100 to $250 at an interest rate of 10 percent. According to WMI, 99 percent of its borrowers report doubling their income within six months of being involved in the program. WMI reports a 98 percent repayment rate.

The efficacy of microlending in pulling people out of poverty is up for debate, but some cases have shown promising results. A microfinance program in Uzbekistan resulted in 71 percent of participants reporting an increase in food intake quality. One study showed that when a microfinance program was put in place, there was an 18 percent decline in extreme poverty. While different studies report differing results, microlending organizations like Kiva, Zidisha, BRAC and WMI have certainly been a success.

– Meredith Charney
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-23 07:30:172024-05-29 23:10:384 Microlending Organizations that Empower the Poor
Activism, Children, Development, Global Poverty, Health

5 Ways Convoy of Hope is Making an Impact

Convoy of Hope is Making an ImpactFounded in 1994, Convoy of Hope is a faith-based, nonprofit organization that works domestically in the U.S. as well as internationally in more than 120 countries around the world. Convoy of Hope as a rating of 96.46 from Charity Navigator and has also made its way to Forbes’ list of the 100 largest charities. The organization has reached millions of people through its focus on disaster relief, children’s feeding programs, women’s empowerment and more. Here are five ways Convoy of Hope is making an impact.

5 Ways Convoy of Hope is Making an Impact

  1. Convoy of Hope provides meals to more than 200,000 children in 14 countries while monitoring the health and growth of these children each day. The organization partners with various food companies and also has its own campaign, feedONE. The goal of providing these meals is to create a starting point to build strong communities, healthy living environments, education and eventual career opportunities. Convoy of Hope is also committed to providing clean water and filtration systems so that these communities are able to access safe drinking and cleaning water.
  2. Through an agricultural program, piloted in Haiti in and now used in eight countries, the organization trains and educates farmers to grow their own crops and has helped schools, churches and orphanages around the world to start their own urban gardens. For instance, since 2012, the on-the-ground team has trained more than 5,000 farmers in “best management practices for culturally relevant agriculture.” Convoy of Hope proudly notes that in 2018, the team provided some 1.2 million meals through its school feeding program — locally grown by the farmers the organization trained.
  3. The organization is also focused on empowering women through Convoy:Women by providing training and education programs covering topics like finance, nutrition, literacy, cooking and health. Since 2011, almost 17,000 women across four countries have been trained through these programs, receiving the help and empowerment needed to make independent life choices. Importantly, the organization also provides start-up capital as a way to promote entrepreneurship and economic empowerment. In addition, there is also a spin-off program called Empowered Girls that focuses on young girls in various schools and communities. More than 4,000 participants are enrolled in this program which covers topics like self-esteem, gendered violence and gendered cultural beliefs.
  4. Convoy of Hope prides itself on being one of the first relief programs to respond to natural disasters around the world. The organization offers on-the-ground response teams as well as shipment of relief supplies from their distribution center in order to bring both immediate and long-term relief and recovery to affected areas. Convoy of Hope has also responded to 379 disasters so far, helping more than one million people in 2018 alone. The organization has also offered help to refugees in the Middle East and Europe since 2014, providing meals, supplies and finances.
  5. Convoy of Hope has partnered with Dr. Kerri Miller, CEO of Make People Better, LLC, in order to provide “reiimmune” to thousands of children. Re:iimune is an “oral hydrobiotic therapy” full of probiotics used to treat dehydration and provide intestinal support to help children absorb important nutrients and medications effectively. To date, Convoy of Hope has distributed 80,000 doses of reiimmune.

It goes without saying that Convoy of Hope has made strides helping those dealing with poverty around the world, with more than 115 million people receiving various forms of assistance since 1994.

– Jessica Winarski
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2019-09-23 07:08:582024-05-29 23:12:565 Ways Convoy of Hope is Making an Impact
Activism, Global Poverty

10 Martin Luther King Jr. Quotes on Courage

10 Martin Luther King Jr. Quotes on CourageFew leaders of change have so successfully exemplified the concept of courage the way Martin Luther King Jr. was able to in his legacy as one of the United States’ most prominent civil rights activists. Keep reading to learn the top 10 Martin Luther King Jr. quotes on courage.

10 Martin Luther King Jr. Quotes on Courage

  1. “An individual has not started living until he can rise above the narrow confines of his individualistic concerns to the broader concerns of all humanity.” – From an interview with Dr. King
  2. “We must develop and maintain the capacity to forgive. He who is devoid of the power to forgive is devoid of the power to love … The degree to which we are able to forgive determines the degree to which we are able to love our enemies.” – From A Gift of Love, a collection of 16 select sermons delivered by Martin Luther King Jr.
  3. “If you can’t fly, then run. If you can’t run, then walk. If you can’t walk, then crawl; but whatever you do, you have to keep moving forward.” – In a speech at a college rally
  4. “Our lives begin to end the day we become silent about things that matter.” – From King’s famous, I Have A Dream speech
  5. “Injustice anywhere is a threat to justice everywhere.” – From a letter written in a Birmingham Jail, April 1963
  6. “Courage is an inner resolution to go forward despite obstacles. Cowardice is submissive surrender to circumstances. Courage breeds creativity; Cowardice represses fear and is mastered by it. Cowardice asks the question, is it safe? Expediency asks the question, is it politic? Vanity asks the question, is it popular? But conscience asks the question, is it right? And there comes a time when we must take a position that is neither safe, nor politic, nor popular, but one must take it because it is right.” – From Martin Luther King Jr.’s autobiography
  7. “A genuine leader is not a searcher for consensus but a molder of consensus.” – From “The Domestic Impact of War”, 1967
  8. “We must accept finite disappointment but never lose infinite hope.” – From a speech in February 1968
  9. “People fail to get along because they fear each other; they fear each other because they don’t know each other; they don’t know each other because they have not communicated with each other.” – From a speech given in October 1962
  10. “There comes a time when one must take a position that is neither safe, nor politic, nor popular, but he must take it because conscience tells him it is right.” From A Testament to Hope: The Essential Writings and Speeches

Courage is the first step to growth, especially when the growth occurs in spite of unjust circumstances. Remembering these top 10 Martin Luther King Jr. quotes on Courage quotes may be the perfect catalyst to push one forward on whichever path they choose.

– Fatemeh Zahra Yarali
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2019-09-23 01:30:542024-05-29 23:12:3710 Martin Luther King Jr. Quotes on Courage
Economy, Global Poverty

Inflation in Venezuela

inflation in Venezuela

Venezuela has been in a decades-long economic crisis. Its economic decline is historically marked by el Viernes Negro or Black Friday. Black Friday took place on February 18, 1983, when the nation’s bolivar began depreciating in value. Inflation in Venezuela has been rising ever since. Recent hyperinflation in Venezuela has caused mass poverty across the nation. The result have been shortages of food and medical supplies and an unemployment rate of 35 percent as of December 2018.

Origins of Depreciation

In order to understand potential ways to alleviate Venezuela’s rising inflation rates, it is essential to understand how the economy reached this point. Back in the 1970s and early 1980s, Venezuela was a flourishing oil tycoon in possession of some of the world’s largest oil deposits. A worldwide shortage of oil raised the prices of barrels and created a golden period of economic growth for oil giants like Venezuela. Once the 1980s rolled in, oil prices stabilized. People started looking for more affordable, alternative energy methods.

This was detrimental to Venezuela’s economy since there was less demand for oil. Heightened production due to the previously increased oil prices left Venezuela with an abundance of oil produced and less demand. Venezuela’s reliance on exporting oil became its undoing. The price of oil continued to drop as the years progressed. Venezuelan oil production continued to exceed the actual demand. Inflation in Venezuela began here as the nation struggled to adapt in the face of failing exports.

Worsening Factors

Several factors contributed to the inflation of the Venezuelan bolivar. One factor was increased spending on social welfare programs and the importation of basic goods during Hugo Chávez’s presidency. While these actions helped to alleviate social unrest, this type of spending couldn’t be sustained as the oil-based economy tanked. In 2008, the global price of oil dropped to around $34 dollars per barrel, a record low that severely cut Venezuela’s core income. In 2014, another record low sealed Venezuela’s economic down spiral as the nation could no longer rely on its chief export for a means of financial stability.

However, this did not deter spending on welfare programs and imports, which led the nation into deficit spending. Deficit spending continues to be a major factor in increasing inflation in Venezuela. The further the nation falls into debt, the more the value of the bolivar depreciates. Currently, the full value of Venezuela’s debt is exceeds “the value of its exports” by 738 percent. Because of its massive debt, the U.S. implimented trade restrictions in early 2019. This has further decreased the sales from exports and the nation’s gross revenue.

Currency printing has been another cause of inflation in Venezuela. In order to pay for the importation of basic goods, more money has and is being printed by banks and the government. The value of the bolivar depreciates the more that is printed. It should be kept in mind, however, that these aren’t the only factors in inflation. The situation is deeply complex, spanning over decades of domestic mismanagement and failing international relations.

Qualifications for Hyperinflation

According to Forbes, a nation’s economy reaches hyperinflation once its monthly inflation rate surpasses 50 percent for a full thirty days. Once that inflation rate drops below 50 percent for another full thirty days, it is no longer in hyperinflation. Venezuela has been in a continued episode of inflation with some peaks of hyperinflation since November 2016.

Because of the longevity of Venezuela’s financial crisis, the nation’s economy is considered to be in hyperinflation. According to the International Monetary Fund, Venezuela’s GDP will drop another 25 percent by the end of 2019. The projected inflation rate by the end of 2019 will surpass 10 million percent.

Alleviating Inflation

Despite the economic down spiral in Venezuela, there is a potential solution that is common across business analysts. Forbes and Bloomberg Business both suggest that Venezuela adopts “dollarization.” This means abandoning the domestic currency in favor of foreign currency. Dollarization allows the economy to stabilize as Venezuela could leave behind the bolivar and adapt to an already stable foreign currency.

The reasons for inflation in Venezuela are numerous. There are some solutions out there, but they have yet to be implemented. In this case, adopting the American dollar may be the best approach to curb the rising inflation in Venezuela and reduce the poverty caused by inflation.

– Suzette Shultz
Photo: Flickr

September 23, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-23 01:30:232024-05-29 23:12:48Inflation in Venezuela
Global Poverty, Government

How Erasing Tax Havens Can End Global Poverty

erasing tax havens
Currently, about 50 percent of countries have poverty rates that are lower than 3 percent. Despite the declining rate of global poverty, poverty rates in poor countries remain high. The existing global system allows for both wealthy companies and individuals to benefit within the global economy through tax avoidance with the use of tax havens, but erasing tax havens and having corporations pay more legitimate and realistic taxes could eliminate global poverty and inequality.

What are Tax Havens?

Tax havens are countries or territories where corporate houses register and operate. According to tax laws, these corporate houses do not have to pay taxes on the profits they make in the area where they operate. The corporate houses do not pay taxes based on the overall group economic performance of the companies but rather based on individual entity. The multinational companies also have an element of secrecy in that tax havens share limited to no information regarding finances with foreign tax authorities.

Effects of Tax Havens

The use of tax havens is not just unique to multinational companies; some wealthy individuals utilize the system as well. The mass amounts of unpaid taxes are denying the world’s poorest governments billions of dollars. In February 2015, a few rich individuals with ties to Kenya were storing more than $560 million in bank accounts in Switzerland. The hidden wealth in tax havens could salvage the lives of four million children and 200,000 mothers in African countries. The gap between the wealthy and the poor in the world grows wider every year, and tax havens primarily fuel it. This is considering that $7.6 trillion of personal wealth hides in offshore accounts that tax havens run. This negatively impacts the fight to eliminate global poverty.

In the 1990s, 5 to 10 percent of global profits from multinational companies shifted, meaning that the jurisdictions where the economic activity took place proclaimed the profits for tax purposes. By the early 2010s, 25 to 30 percent of multinational companies’ global profits shifted. According to the International Monetary Fund, the active practice of corporate tax avoidance around the world has put the global revenue losses between $200 billion and $600 billion and lower-income countries make up around $200 billion of the global revenue loss. There are approximately 650 million poor people globally who live beneath the international poverty line of $1.90 per day. If a new country emerged with a Gross Domestic Product of the $200 billion revenue from low-income countries due to tax havens, the country could eliminate global poverty just by giving $2 every day to those 650 million people.

The Unitary Tax Approach

One way multinational companies are trying to curb tax avoidance is through the apportionment reform programs or the unitary tax approach. Through the unitary tax approach, global governments would assess tax havens’ profits as a group rather than as individual entities. This method would apportion the profits that the tax havens make as a group to each of the countries where the companies operate based on how much economic activity took place in the respective countries.

In using the unitary tax approach, multinational companies would receive taxes where employees do the actual work rather than where the ledgers hide. Due to the fact that the economic activity that the tax havens are carrying out in countries would be more authentic, a greater deal of the global shares of the corporation’s profits would distribute to the countries, and then each country would have more reign to exercise their taxing rights and tax its shares of global profits at a more reasonable rate. A global shift to the unitary tax shift approach overall would benefit not just the U.S., but also low-income countries in the fight to eliminate global poverty.

Erasing tax havens is necessary as they are detrimental to the global system in that they rob governments of the opportunity to eliminate global poverty and socioeconomic inequality by depriving governments of needed public service resources such as health and education. Erasing tax havens is vital to eliminating global poverty, and global tax laws need to modify to benefit many, not just a few.

– Cydni Payton
Photo: Flickr

September 22, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2019-09-22 18:24:242019-10-18 15:06:44How Erasing Tax Havens Can End Global Poverty
Advocacy, Charity, Global Poverty

5 Celebrities Helping HIV/AIDS Crisis

Celebrities HelpingCelebrities are regularly known for their top hits, exquisite gala ensembles and daily routines. However, there are many celebrities supporting charities and organizations through advocacy, fundraising and donations. Below are five celebrities helping the current HIV/AIDS crisis.

Elton John

British singer, songwriter, pianist and composer Elton John established the nonprofit organization Elton John AIDS Foundation (EJAF) in 1992. The Foundation was created to support various HIV/AIDS prevention programs, increase public awareness about the HIV/AIDS epidemic, and ultimately end the disease. EJAF prioritizes grant-making and donations and has raised more than $350 million across the world over the past 25 years.

The Elton John AIDS Foundation held their first-ever Midsummer Party on July 24, 2019 to support HIV/AIDS prevention and treatment services and raised six million dollars with the help of celebrity donors from all over the world.

Bill Gates

The Bill & Melinda Gates Foundation was launched in 2000 and is reported to be the largest private foundation in the world. Along with many other causes, the foundation has promised to donate $100 million towards HIV/AIDS awareness and support in India.

At the announcement in New Delhi, Gates said the foundation is dedicated to supporting India’s efforts to contain its HIV/AIDS population at a low level. India currently has only a small population living with HIV/AIDS, and therefore the foundation wants to help terminate the epidemic at the earliest stage possible. Gates has faith that India could be a global leader in developing new and improved HIV prevention technologies.

Victoria Beckham

The fashion designer and former Spice Girl was appointed UNAIDS International Goodwill Ambassador in 2014 and continues to support HIV/AIDS prevention and treatment through spreading awareness about the virus. The designer has designed t-shirts for World AIDS Day over the past years and 100 percent of t-shirt sales are donated to the charity Born Free Africa, which works on Prevention of Mother to Child Transmission (PMTCT).

Beckham has also joined the mothers2mothers (m2m) organization in hopes to eliminate pediatric AIDS in sub-Saharan Africa. She has sold more than 600 pieces of her wardrobe and all proceeds have been donated to m2m and its efforts to help HIV-positive mothers and their babies. Beckham has visited m2m sites in Cape Town, Africa and is determined that a cure to HIV can be found with continuous support.

Rihanna

Singer/songwriter Rihanna was named Harvard’s Humanitarian of the Year in 2017 and has helped MAC Cosmetics’ MAC AIDS fundraise over $500 million to help fight the current HIV/AIDS epidemic. Rihanna is a brand ambassador for Mac Cosmetics’ Viva Glam lipstick, in which 100 percent of proceeds are donated towards HIV/AIDS awareness.

Rihanna also took a series of HIV tests with Prince Harry of Wales on World Aids Day in efforts to raise awareness about the virus and to encourage more people to get tested.

John Legend

The singer has taken part in Belvedere Vodka’s #MAKEADIFFERENCE campaign to end the HIV/AIDS epidemic in Africa. The campaign has created a unique Belvedere Vodka bottle that donates 50 percent of each purchase towards the HIV/AIDS fight.

John Legend has joined 80-year-old South African artist Esther Malanghu in the campaign to help Africa fight HIV/AIDS. Legend has written the song “Love Me Now” that will be used for the campaign and hopes that HIV/AIDS will be completely terminated during his daughter Luna’s lifetime, who was born in 2016.

Celebrities helping, like those mentioned above, know the power of their influence, and they’re using it to positively impact the world by fighting HIV and AIDS.

– Paige Regan
Photo: Flickr

September 22, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-22 08:21:382024-05-29 23:10:545 Celebrities Helping HIV/AIDS Crisis
Advocacy, Global Poverty, Nonprofit Organizations and NGOs

Four NGO Advocacy Groups Fighting Global Poverty

fourngoadvocacygroups
When it comes to encouraging global change, advocacy groups are an essential piece of the puzzle. Advocacy groups and non-governmental organizations (NGO) are organizations that support a cause politically, legally, or through other means of facilitation. In the fight against global poverty, and many other worldwide maladies, here are four NGO advocacy groups.

Advocates for International Development

Advocates for International Development, otherwise known as Lawyers Eradicating Poverty, is an advocacy group and charity that supports global change through a legal lens. This organization recognizes that developing nations may not have proper access to legal expertise and that in order to secure sustainable development, legal services need to be available everywhere.

Advocates for International Development provides pro bono legal advice, access to lawyers and law firms, law and development training programs and many more legal services. This organization’s reach has spread to over 100 legal jurisdictions worldwide, with a network of over 53,000 lawyers at the NGO’s disposal.

With its goals based on recent U.N. initiatives, Advocates for International Development aims to see the world ridden of extreme poverty by 2030.

MADRE

MADRE advocates for female involvement in policy-making and legislative decisions worldwide. MADRE also provides grants and donations to smaller women’s advocacy groups, having donated over $52 million to those groups since MADRE’s founding in 1983. This organization recognizes unequal representation in legal processes across the globe and fights to ensure that society hears all voices.

MADRE also works alongside the City University of New York (CUNY) School of Law to provide quality legal services to women in need. Together, these entities use law-based advocacy to ensure the international security of human rights and to correct any human rights violations.

As of 2019, MADRE and CUNY School of Law have drafted a successful treaty, demanding the redefinition of gender in the eyes of the United Nations General Assembly’s Sixth Committee. This redefinition will pose to protect the rights of all genders in future international human rights disputes.

The Global Health Council

The Global Health Council advocates for global health awareness and legislation to pass through the U.S. Congress. On top of securing strong global health policies, this organization focuses on preventing premature death in children and adolescents worldwide. The Global Health Council also facilitates smaller organizations, working with them to achieve goals beyond the scope of U.S. Congress.

The Global Health Council is one of the world’s largest membership-based global health advocacy groups. This organization has over 100,000 members, with branches in over 150 countries. With the help of the Global Health Council and all its members, infant mortality has reduced by 50 percent worldwide and maternal mortality has reduced by 43 percent.

Amnesty International

Amnesty International is an NGO that advocates for the international security of basic human rights. Amnesty International gathers its information through direct research, sending crisis response teams across regions worldwide to record and report human rights violations. From this organization’s research, activists gain the necessary fuel to push for the protection of human rights everywhere.

One of the world’s largest grassroots human rights organization, Amnesty International has more than seven million members and offices in more than seventy nations. For upwards of fifty years, this organization has been an essential consultant to the United Nations for international human rights policies.

Amnesty International has made major humanitarian strides, such as helping free 153 falsely imprisoned people worldwide in 2018 alone, and influence international laws surrounding refugees, the death penalty and many other human rights issues.

There are countless more organizations worldwide fighting to make the world a better place. These four NGO advocacy groups are just a few examples of what public support and mobilization can achieve.

– Suzette Shultz
Photo: Wikimedia Commons

September 22, 2019
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2019-09-22 07:30:512024-05-29 23:10:37Four NGO Advocacy Groups Fighting Global Poverty
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