Archive for category: Global Poverty

Key articles and information on global poverty.

,

New Policies Address Deficiencies in Girls’ Education in Cabo Verde

Girls’ Education in Cabo Verde
Cabo Verde is comprised of a group of 10 main islands off of Africa’s northwest coast, separated into the northern Barlavento group and the Sotavento group in the south. Compared with low to middle-income countries, Cabo Verde ranks in the 61st percentile in learning, despite ranking in the 85th percentile in providing access to education. These statistics, however, do not preclude girls’ education in Cabo Verde from further developing its policies to provide young girls with more opportunities than they are given now.    

Girls’ Education in Cabo Verde Plagued by a Gender Gap

Although Cabo Verde benefits from a relatively high rate of youth literacy at 98 percent, there is a gender divide in longer-term education opportunities that is apparent in more specific statistics. Even though the female youth literacy rate is at 98 percent, the female adult literacy rate drops to 86 percent. In 2015, the male population aged 15 years and older had a literacy rate of 91.69 percent, while the female population had a rate of only 82.04 percent.

The policies of the island nation widen the gender gap in education. The gross enrollment ratio for primary education for males in 2015 was at 101 percent while for females it was at 94 percent; of all females that qualify for primary education, only 94 percent enroll. Beyond the low minimum education requirements, many girls have been suspended for pregnancy and cannot resume schooling until after birth. 

As only primary education is free and compulsory for students aged 7 to 13, enrollment rates in secondary schools and higher education drop due to a lack of financial and emotional resources. It is not uncommon for young girls to take on menial jobs, as these are the only jobs they are qualified for since they have not completed their education. Moreover, the shameful stigma of teen pregnancy is often a large enough barrier to keep girls from staying in school or trying to continue.

Progress in Policies Helps Girls Finish School

“Tens of thousands of pregnant girls and adolescent mothers are banned or discouraged from attending school across Africa,” reported Human Rights Watch on June 16, 2018. Only recently has this policy been revised, giving hope for a change in these rates. The report “Leave No Girl Behind in Africa: Discrimination in Education Against Pregnant Students and Adolescent Mothers” has urged governments to ensure that pregnant girls have the ability to stay in school or at least be able to return to their studies after childbirth.

Twenty-six African countries have proceeded with the report’s advice in protecting these girls’ education. Cabo Verde has revoked all disciplinary actions against pregnant schoolgirls and replaced them with ones that support their re-entry. There are also special accommodations for teen mothers in school, such as permitting time for breastfeeding and health clinic appointments. These new policies do not guarantee that girls actually return to school, as they are not carefully overseen.

Since 2013, all countries associated with the African Union have adopted Agenda 2063, which focuses on the economic and social development of the continent. With a clear strategy, Africa aims to invest more in education, including “elimination of gender disparities at all levels of education,” according to the official Agenda 2063 document. Additionally, governments are working towards ending child marriage and increasing sexual and reproductive health education, which is the largest factor inhibiting the development of girls’ education in Cabo Verde.

Given Cabo Verde’s high statistics regarding some aspects of its educational system, there is reason to believe that it values progress in this sector and will continue to address the current issues, particularly the gender gap in education. “More than half the population of Cabo Verde is under 22 years of age. There is no way not to prioritize the youth,” Susan Delgado, head of the Cabo Verdean delegation and specialist in the Ministry of Education of Cabo Verde, told UNESCO. Recognizing that girls’ education in Cabo Verde deserves reconstruction, much of the island nation’s development will rely on providing equal opportunities for its youth.

– Alice Lieu
Photo: Flickr

,

Improving Conditions in India: Emerging Economies

Improving Conditions in India: Emerging Economies
Currently, India is a low middle-income country and is set to become an upper middle-income country within the next decade. The improving conditions in India have been shown in many different sectors throughout the country. It is abundantly clear in sectors like the travel sector, health sector, telecommunications, and the space program.

Improving Conditions in India: Travel

The prime minister of India passed the national civil aviation policy which has had a positive impact on the travel and economy in India. It was passed in an effort to make flying more affordable for India’s growing middle class. The national civil aviation policy states that domestic carriers no longer have to operate for five years before they can fly abroad. This change immediately affected Vistara and AirAsia India. The number of passengers on domestic flights increased by 21 percent to over 80 million passengers and this number is estimated to reach 300 million by 2022.

The government has also lowered prices of domestic travel, only on the less popular routes, to be capped at $37 each hour of air travel. This has increased travel within India and has helped airports and airlines welcome more business which has had a large effect on the improving conditions in India. The effect has been shown through increased jobs in the travel industry and stimulating the economy in other parts of the country with new travelers that will purchase things in new cities like hotel rooms, food or even souvenirs.    

Improving Health

The life expectancy in India has doubled in just approximately 70 years. It has gone from 35 years in 1950 to almost 70 years today. This has come from various changes throughout India. One of the biggest changes is the access to toilets in the country. As a result of the efforts of Swachh Bharat Abhiyan. Swachh Bharat Abhiyan is a movement in India that aims to clean up the city, infrastructure and rural areas of the country. From the efforts of this program, millions of more people have access to toilets in India which has greatly helped improve conditions.  

Improving Telecommunication

The government of India has recently wanted to improve telecommunication in the north-eastern states of the country. To do this the government has invested around $1.7 billion to fund projects that will help the telecommunication throughout the country. These improvements are set to be completed by December of this year. There has been a deal signed between Bharat Sanchar Nigam Limited (BSNL) and Universal Service Obligation Fund (USO) to set up almost 7,000 mobile towers in over 8,000 cities and along the highway in Northeast India. This deal hopes to help people in rural areas of India have the same access to ICT services at affordable prices as people in the bigger cities have. Phase one of this deal was completed in December 2017 which laid a great amount optical fiber cable covering 109,926 GPs (Gram Panchayats) and over 100,00 of them are ready for service. This means that more people throughout rural areas of India have access to high-speed internet at an affordable price which is only helping the country become an upper-middle income country even faster.  

The Space Program

Just over a year ago the Indian Space Research Organization launched multiple record-breaking satellites into space showing the world that India has a strong space program. It launched 104 nano-satellites and a larger satellite for Earth observation. Then even before that, in 2014, it launched the Mars Orbiter Mission. India was the only country to do that on the first attempt and with a budget of only $73 million. The Space Foundation estimates that these smaller inexpensive satellites that India has been building will be of great demand in the next few years. These innovative and cheap satellites and a boost in the Indian Space Research Organization has brought and will continue to bring money into the economy of India. It will create jobs and stimulate the economy.  

Each of these sectors has greatly improved in India in the past several years and will continue to help India to become a less impoverished country and move forward to become an upper-middle-class income country in the next few years.

– Ronni Winter

Photo: Flickr

Legalizing Coca Leaf Production: An Economic Boon to South America

Legalizing Coca Leaf Production
A recent study on the benefits of coca leaf legalization has spurred lobbying efforts in Colombia, with advocates encouraging the country to legalize its production rather than attempting to eradicate the crop. Using coca leaves has been a traditional practice among indigenous South Americans for thousands of years. Before the leaf was harvested and manufactured into cocaine, it was chewed or made into a tea. It provides medicinal and health benefits like treating nausea and can be used for an energy boost.

Before industrialization, when working long days of hard labor, workers—especially some of the underprivileged farmers—would chew coca leaves for the effect of the stimulant but also to satiate hunger pangs while working on an empty stomach. Coca leaves also provide essential minerals like calcium, magnesium, phosphorus and vitamins like A, B1, B6, C and E. Chewing and brewing coca leaves is a natural way of taking dietary supplements.

Peru and Bolivia See Benefits from Legalizing Coca Leaf Production

The government of Peru formed the National Coca Company of Peru (ENACO) in 1949, pushing for legalizing coca leaf production in order to make items and medicines derived from coca leaves. Farmers growing leaves for chewing to be sold to ENACO got their land certified for legal growth in 1978. ENACO does not only cultivate legal coca leaves for local traditional uses, but also sells its products around the world. One of the most common uses is as a natural anesthetic for eye surgery; ENACO is one of two companies that produce coca leaves for this medicinal purpose.

Coca production in Bolivia, however, is more recent. Bolivia has the third world’s largest crop of coca leaves (after Columbia and Peru) with about 67,000 acres used for farming. In 2011, the Bolivian Community Coca Company was founded by the government for the legal cultivation and purchase of coca leaves to be made into flour, ointments, and other products. In 2013, the Bolivian government sought to market coca-based toothpaste to the public with the intention of battling the illicit use of the drug. By using the drug for products like toothpaste or flour, there will be more use of coca leaves for legal industrialization and less for illegal drug trafficking.

How the Legal Coca Leaf Could Help Colombia

Legalizing coca leaf production in the long term could benefit Colombia economically, politically and socially. Allowing coca leaf farms could offset expensive anti-drug efforts like crop substitution, where the government buys out farmers of their current crop and looks to replace it with a different, legal product. However, crop substitution is costly and non-sustainable, especially if the demand for cocaine does not change. If the uses for coca leaves remain the same while their cultivation is restricted by the government, it will merely increase the price of the drug and make crime worse.

Bolivia and Peru are examples of the benefits of legalizing coca leaf production. These countries show that the medicinal benefits can be harnessed to create a market that effectively limits the illicit use of the leaves by taking away from the crops that would be used to make cocaine. Opening a legal market for coca leaves to be made into useful items like flour, ointments, toothpaste and other products would help lower the amount of drug trafficking and create new opportunities for coca leaf farmers to sell this indigenous plant.

– David Daniels
Photo: Flickr

HIV in Africa: Myth vs Fact

HIV in Africa: Myth vs Fact
The existence of HIV and AIDS may be widely known, but there are plenty of misconceptions lingering about the viruses. This epidemic is serious and scary for many people, sometimes causing excessive stigma. HIV is a global issue but remains most largely concentrated in underdeveloped regions, most notably, Africa.

Knowledge about HIV, early detection, diagnosis and treatment has improved markedly since it was first recorded. Below are some commonly accepted beliefs regarding AIDS and HIV in Africa and a breakdown of the myths and facts associated with each.

HIV-Positive Individuals Are Highly Contagious

Though HIV can be spread from person to person, it does not occur as easily as some may believe.

MYTHS — HIV cannot be transmitted through saliva, skin-to-skin contact, or sharing common facilities such as bathrooms, kitchens or living/working spaces. It is safe to casually touch an HIV positive individual, or even share a drink with them.

FACTS — HIV can be spread through only these specific bodily fluids: blood, semen and pre-seminal fluid, breast milk, and vaginal and/or anal fluids. Even when these types of contact have been made between an infected person and a non-infected person, transmission is not absolutely certain.

Spreading HIV is Reckless Behavior That is Easy to Prevent

MYTHS — People who have been diagnosed with HIV infect other people intentionally and should be more careful in stopping the spread of HIV.

FACTS — Many infected people do not know that they are HIV positive. In fact, nearly 70 percent of individuals living with the virus are unaware. Symptoms of HIV can be very subtle, so when a person becomes infected it can easily go undetected. Many people living in Africa do not have access to contraception, testing, or treatment due to poverty and thus, the spread of HIV is not due to reckless behavior.

Contracting HIV Can Be Easily Prevented by Living a Respectable Lifestyle

MYTHS — HIV and AIDS are the results of unprotected or gay sex, or from injecting drugs with infected needles. Women, straight men and people who do not use drugs cannot get HIV or AIDS.

FACTS — While the most common methods of transmission are through sharing infected needles and unprotected sex (for both women and men), other methods exist. Mothers in Africa have been known to spread the virus to their babies through pregnancy, birth, or breast milk. If a non-positive person has an open wound, they may contract HIV if in contact with an infected person’s bodily fluids.

HIV in Africa is Due to Irresponsible Africans and Therefore It Is Their Responsibility

MYTHS — HIV and AIDS only exist in Africa and other poor countries; western countries should not be concerned.

FACTS — Seventy percent of all HIV cases are in Africa, while 30 percent are not in Africa. Swaziland, Africa has an infection rate of more than one-fourth of the population, and continent-wide, roughly one million deaths occur on an annual basis.

Though HIV in Africa is much more prominent than in other parts of the world, it takes effort and support from those in power to end the epidemic and provide care for those suffering in all parts of the world.

There is No Hope for the Deadly HIV Epidemic in Africa

MYTHS — Once HIV is contracted, the immune system shuts down, the quality of life degrades and life expectancy significantly decreases.

FACTS — HIV only progresses to AIDS when left untreated. Treatment for HIV does exist, suppressing the infection and allowing for a long and healthy life for those infected. However, treatment for HIV in Africa is less available.

In the southern parts of Africa alone, about one million HIV/AIDS-related deaths are recorded annually, and the regional life expectancies range from 49-54 years old due to HIV/AIDS. To combat this, UNAIDS developed a plan to end the AIDS epidemic by the year 2030. The steps include early detection, immediate and affordable treatment, gender equality, family planning, and an emphasis on the most susceptible populations.

The PEPFAR (President’s Emergency Plan for AIDS Relief) has brought hope to ending the epidemic, and in 2017, decreased the number of newly reported HIV infections in young females by as much as 40 percent.

Moving forward with HIV in Africa, there is great hope in combatting the infection. As more medical knowledge is gained worldwide and acceptance of infected individuals is increasing, so is the quality of life for those living with HIV. The continued attention on the spread and prevention of HIV will be a substantial contributor to the successful end of this global health risk.

– Heather Benton

Photo: Flickr

,

U.S. Benefits From Foreign Aid to Samoa

Samoa aid
A common misconception suggests that the United States has nothing to gain from providing aid to other countries. Some people might support the international affairs budget out of a desire to help save humanity, but there is more to providing foreign aid than that. For example, the U.S. benefits from foreign aid to Samoa when it helps increase exports and prevents damage to the island caused by natural disasters. The funding that goes towards programs overseas is not a one-time donation. Samoa will be given the tools necessary to build a self-reliable community and in turn, Samoa’s improved contribution to the global market promotes economic growth in the United States, too.

Samoa has repeatedly been victim to natural disasters that have stunted its economic growth. Tsunamis can destroy crops and natural resources, negatively impacting Samoa’s involvement with foreign trade. Since it is part of the Asia Pacific region, which has experienced significant economic growth, the destruction of Samoa’s natural resources interferes with export shipments going to the United States.

An estimated $180 billion in damages and lost resources occurs every year due to natural disasters. Within the past 20 years, $93.2 billion was spent on relief while only $13.5 billion was put towards disaster prevention. The U.S. benefits from foreign aid to Samoa by minimizing damage to the environment and saving potential exports.

To combat tsunamis and the rising sea levels, USAID encourages communication among countries in the Asia Pacific region with the use of the Pacific Disaster Center’s warning system. It compiles information from weather radars to notify Samoa when storms are headed in its direction. The Secretariat of the Pacific Community helps protect agriculture, while USAID lets stakeholders know when there is a particularly strong harvest.

In recent years, the Strategy for the Development of Samoa (SDS) announced plans to help preserve natural resources and vulnerable species. This includes replanting trees that bear fruit and restoring marine ecosystems. So far, USAID has dedicated $96 million to the entire Asia Pacific region.

The U.S. benefits from foreign aid to Samoa because it depends on Samoa’s agricultural and fishing industries. These are also two of the largest sources of income within Samoa. When help focuses on protecting crops and fisheries, Samoa increases its ability to participate in the global market.

Foodstuffs make up 40 percent of what the U.S. imports from Samoa, and nearly a quarter comes from its fish. In total, $6.76 million worth of product is sent to the United States. In addition to helping Samoa’s environmental plans, the SDS seeks to grow the country’s economic involvement through boosting productivity in the business sector. This will have a positive impact on trading with the United States.

Many other goals outlined in the SDS are designed to help Samoa and the countries that do business with it. Farmers are receiving materials to improve their harvests and hopefully reach a 20 percent increase in crops grown within Samoa.

Higher employment rates in the businesses that produce exports are predicted to help the agricultural and fishing industries. Also, financial services are looking to improve the performance of small business owners. Samoa can maximize the number of resources saved from natural disasters when all companies follow the correct protocol in the event of an emergency.

Foreign aid is an investment. The United States’ efforts to promote a thriving economy in Samoa will be returned in the form of better trade opportunities. Natural disasters and low production rates affect more than just Samoa. Thus, it is in the interest of other countries, such as the United States, to provide foreign aid to Samoa.

– Sabrina Dubbert

Photo: Flickr

Three Organizations Helping Girls’ Education In Uganda

Girls' Education in Uganda
Girls’ education in Uganda is not a priority for the leaders of this East African country. Because of the huge gender gap and the perpetuated stereotypes of women and girls working in the home, their education does not take precedence. Instead, boys’ education is what is at the top of schools’ minds. In Uganda alone, more than 700,000 children between the ages of 6 and 12 have never attended school. Despite these facts, a handful of organizations are helping girls in Uganda get the education they need.

Organizations Improving Girls’ Education in Uganda

  1. Global Partnership for Education
    This organization granted Uganda $100 million to improve its education system and so far, the results are exceptional. Since this money was granted, more than 18,000 teachers have been trained in early grade reading in English and in local languages, teachers and committees have been trained in more than 900 schools, and as of January 2018, there are more than 550,000 direct project beneficiaries. These results will directly impact girls in Uganda because a more proficient school system will be able to support more children and give them the education they need. The education sector of Uganda has the goal of increasing the participation, performance and progress of women and girls in the education system. Hopefully, with the help of the Global Partnership for Education, this goal will be achieved in abundance.
  2. United Nations Girls’ Education Initiative
    UNGEI has implemented several strategies in order to improve girls’ education in Uganda. Since UNGEI partnerships have begun working in Uganda, the process for developing messages for the national gender parity campaign has begun, female role models for empowering girls have been promoted and support for young people is being led by this initiative in its program for community outreach to find out-of-school children. This organization will encourage girls to take a greater interest in completing their education. Through this work, girls’ education will hopefully become more of a priority for everyone in Uganda.
  3. Girl Up Initiative Uganda
    This organization has a number of programs to empower young girls to participate more in their communities, one of them being the Adolescent Girls Training Program. This program is conducted inside the local Uganda schools and it focuses on building young girls’ aptitudes for individual empowerment and social survival. Girl Up confronts gender inequality to help young girls to advocate for themselves and to build their self-esteem. This organization allows girls to feel empowered and not as if the world is run solely by boys and men. This program provides girls with critical thinking skills and gives them the tools to deal with unfair realities in their daily lives. By doing so, this initiative is forging the next generation of confident women who will someday become leaders in their country. Girl Up addresses areas of education that are missing from young girls’ everyday lives and schooling. A couple of the areas that this organization covers are self-esteem and body image, violence against women and children, children’s rights and leadership skills. This program provides girls with the tools to be a leader within their school and their community as a whole.

If the Protecting Girls’ Access to Education in Vulnerable Settings Act is passed through the Senate and is signed by the president, these organizations will benefit immensely. This act will prioritize efforts to support access to primary and secondary education for displaced children, mainly focusing on including women and girls in foreign assistance programs. This is the main purpose for all three of these organizations and this act will allow this goal to cover more ground as well as being achieved much faster. This act will give girls’ education in Uganda a huge boost, as well as all impoverished countries in which girls’ education is not a priority.

– Megan Maxwell
Photo: Flickr

To find out more about the past successes of our advocacy work and our current legislative priorities in Congress, head over to our Legislation page.

10 Facts About Human Rights in Iran That Show Its People’s Struggles

10 Facts About Human Rights in Iran
In March 2018, the U.N. Human Rights Council and the U.S. Mission in Geneva restated their concerns about the state of human rights in Iran, such as the rigorously restricted rights of both expression and freedom that are enforced by Iranian authorities. People are arrested and imprisoned for expressing different beliefs and the punishments for crimes include floggings and amputations. Iranian authorities have refused to allow U.N. specialists to get involved. These facts about human rights in Iran explore some of the recent and ongoing issues in the country.

Facts About Human Rights in Iran

  1. In the presidential elections of May 2017, President Hassan Rouhani was elected for a second term. However, he was elected due to a discriminatory election process that included the disqualification of candidates based on their gender, religion or political opinions.
  2. The first large-scale anti-establishment protest since 2009 happened at the end of December 2017. Many Iranians protested against the ongoing poverty, corruption and political restrictions in their country.
  3. In 2016, 203 people were executed by law enforcement by October. Different human rights groups also say that the number may be higher, stating that more than 437 people were killed because the majority of executions occurred during the second part of the year.
  4. The U.S. imposed its first injunction on Iran for violations of human rights in 2010. As a result, 10 different Iranian administrators were given financial constraints and were banned from traveling to the U.S.
  5. The United Nations Children’s Rights Committee stated in March 2016 that flogging continued to be used as a lawful punishment for boys and girls who had been sentenced for crimes. Despite amendments to Iran’s penal code, children were still being executed in 2016.
  6. Another fact about human rights in Iran is that there have been continuing restrictions on media and obstructions of foreign television stations. In addition, Iranian authorities have banned 152 journalists from making any financial transactions.
  7. Iranian authorities continue to restrict medical care for prisoners. These prisoners are forced to live in horrible conditions, including overcrowding, little to no hot water, insect infestations and poor food quality.
  8. Different intelligence organizations in Iran continuously monitor citizens’ activity on social media websites like Twitter and Facebook. Multiple civilians active on social media have been arrested for comments made on the platforms.
  9. Women in Iran face heavy discrimination in personal matters like child custody, marriage and divorce. A law that is still in place today is that women need a male guardian’s permission to get married, even if the woman is an adult.
  10. Trials in Iran continue to be unfair, including prejudices against Iranians with dual citizenship. These citizens and foreigners endure lengthy prison sentences, unfair trials and capricious arrests.

These facts about human rights in Iran shed light on the maltreatment Iranian people have to endure. President Rouhani has been in office for three years, and though he based his campaign on improving human rights conditions, the situation remains the same in Iran.

– Alyssa Hannam
Photo: Flickr

,

Rates of Girls Finishing Primary School Increasing Around the World

Girls Finishing Primary School
The importance of education in lifting a country out of extreme poverty has been well established. Specifically, girls’ education promotes gender equality, raises wages and results in smaller, healthier families. There is an unprecedented increase in girls finishing primary school, allowing them to get educated alongside their male peers.

Income Levels and How they Affect Girls Finishing Primary School

The percentage of girls who can afford to attend (and finish) primary school is directly tied to their country’s income level. Level 1 is extreme poverty; the family can barely afford to eat and must get water from wells. Level 2 is lower-middle income; the family can afford decent food and shoes. Level 3 is upper-middle income; the family can afford running water and basic appliances. Level 4 is high income; the family can afford a nice house and cars.

Level 4: Oman

One hundred percent of girls in Oman finish primary school. Primary school starts at age 6 and continues until age 18, and girls can go to one of 1,045 schools as of 2011. However, back in 1973, when Oman was a Level 1 country, there were only three primary schools with no girls attending them at all. Oman has experienced phenomenal advances in both poverty reduction and girls’ education.

Sultan Qaboos bin Said ascended the throne in 1970 and did not like what he saw. He vowed to improve life for the Omani people. This included, among many other things, opening more schools and allowing girls to attend them. Additionally, he made public school free, allowed private schools to exist and created a comprehensive kindergarten curriculum. With the availability of free education for girls, 100 percent of girls attend and complete primary school.

Level 3: Iraq

In Iraq, 58.8 percent of the nation’s girls finish primary school. This is down from 68 percent in 2004, but it is higher than the 0.722 percent that it was in 1974. At present, girls make up 44.8 percent of students in primary schools.

The Iraqi school system is far from ideal. Uneducated girls, when asked why they do not attend school, cite abusive teachers, poverty, the presence of boys and concerns about domestic and national safety. Those who do go to school endure dirty bathrooms, a lack of clean drinking water and the aforementioned abusive teachers. Despite this, there are enough girls finishing primary school in Iraq to keep the country out of extreme poverty in the next generation.

Level 2: Morocco

In Morocco, 94.7 percent of girls finish primary school. This is a stark increase from 22.9 percent in 1972. After King Mohammed the Sixth ascended the throne on July 30, 1999, he began placing more focus on the education of his people. His efforts have impacted girls more than boys, as shown by the fact that only 9 percent of girls have to repeat any grades in primary school, which is less than the 13 percent of boys who have to do so. Although this has done little to improve women’s reputations as workers thus far, it is still a victory for the country.

Level 1: Myanmar

In Myanmar, 89.3 percent of girls finish primary school. This number was only 30.8 percent in 1971 for a simple reason: extreme poverty. While schooling itself is technically free, parents still need to pay for uniforms and supplies, and boys are favored over girls in terms of whom parents will spend money on. Sometimes, girls as young as 4 years old are sent to schools in Buddhist monasteries, which means being separated from their families.

However, help is being provided by the international community. Educational Empowerment is an American organization dedicated to promoting educational equality in Southeast Asia. It develops and supports schools in Myanmar, publishes books, and gives microloans to mothers to help get their daughters into school. This has helped girls catch up to their male peers and finish primary school.

For girls, getting an education has historically not been an easy task. Between the cost of school attendance, the existence of extreme poverty and general gender inequality, girls often fall behind their male peers when it comes to receiving an education. However, thanks to new government rulings and help from nonprofit organizations, there are now more girls finishing primary school than ever before, and the number is set to rise even higher. In the near future, girls’ education will be on par with that of their male counterparts. This is important because educating girls leads to educated women, and educated women can help lift a country out of extreme poverty.

– Cassie Parvaz
Photo: Flickr

Efforts to Improve Credit Access in Malawi

Efforts to Improve Credit Access in Malawi
Although the Southern African country of Malawi is small, its arable topography and high population have contributed to its economic growth. With a population of more than 19 million, Malawi has a GDP of about $6.3 billion and has had a steady growth of at least 2 percent annually. Despite this economic growth, poverty and hunger remain serious issues in the country. These issues have indirect links to credit access in Malawi, and through improved credit in the country, Malawians could experience a decrease in overall poverty.

Credit Limitations In Malawi

Credit access in Malawi, like in other sub-Saharan countries, is particularly limited in rural areas. These rural areas are typically those most in need of access to formal loans for business and agricultural endeavors. Only 11.7 percent of rural Malawians took out loans in the last year, and only 40.3 percent of those were acquired formally through banks. Credit supply in Malawi also requires collateral and comes with high-interest rates and specific conditions for borrowers. These conditions make it extremely difficult for Malawians to qualify for credit. In fact, The World Bank ranks Malawi a low 109 out of 129 countries because accessing credit for small business is so difficult.

Lack of credit access in Malawi has an indirect correlation to nutrition and economic development in rural areas. According to studies conducted by the International Food Policy Research Institute, households with more livestock and land have fewer opportunities to access formal credit. Credit access is also affected by the crops grown by Malawians. Tobacco is often grown by farmers to offset credit costs and make more money than maize farmers, but they are more nutritionally deficient than their counterparts. Some farmers can gain access to small amounts of credit depending on their crop’s nutritional or agricultural profit.

Improving Access To Credit in Malawi

Several organizations are currently attempting to better credit access in Malawi in order to decrease poverty and hunger issues throughout the country. The World Food Programme (WFP) buys food directly from small, rural farmers in Malawi through a system called The Warehouse Receipt System. This market facilitation is managed by WFP and offers farmers receipts for crops that have been cleaned and graded to use as collateral for formal bank loans. These economic opportunities for small farmers have led to increased loan access and have also promoted a structured market demand in the country. For women in particular, who constitute 42 percent farmers in the program, the gender gap in the agricultural industry is slowly being closed.

Financial organizations, like the Malawi Union of Saving and Credit Cooperatives (MUSCCO), also operate in the country to improve credit access. MUSCCO’s goal is to organize and develop Saving and Credit Cooperative Organizations (SACCOs) in Malawi in order to mobilize capital and meet the developmental needs of Malawians. These SACCOs, in turn, work with stakeholders and banks in order to further economic development in the country and create diversified financial opportunities.

Limited credit access in Malawi, much like other developing countries, constricts the country’s economy and range of financial operations. Malawian farmers are particularly limited in their access to formal loans that would instigate economic growth. With the assistance of organizations like The World Food Program and SACCOs, not only would credit access in Malawi improve for farmers but it would also help to decrease poverty and improve economic development.

– Matthew Cline
Photo: Flickr

Credit Access In Samoa

Credit Access In Samoa
In the past few years, Samoa has seen the emergence of a new banking system with a focus on credit access. This comes after years of financial hardship and a shrinking economy. According to a 2016 report, no new loans had been issued in Samoa in roughly five years. Major financial cornerstones like the Bank of Hawaii had backed out of the country.  In desperation, and on the margins of the mainstream economy, Samoa adopted a public banking system.

The Landscape of Samoa’s Credit Sector

The financial services sector in Samoa encompasses a wide range but is mostly limited to urban areas. The industry has four major commercial banks: two foreign banks and two regional banks. However, the domestic credit market is controlled by Public Financial Institutions. Samoa National Provident Fund holds 22.6 percent of the market; another key player, The Development Bank of Samoa, holds a 10.3 percent share. Much of the success of credit access in Samoa can be attributed to the Central Bank of Samoa. It acts as a regulator and has enforced progressive strategies that have expanded financial services and inclusion.

However, 49 percent of Samoans are outside of the formal financial market. Public constraint has often been attributed to a cash-heavy informal economic sector and inadequate access to distribution points throughout Samoa. The World Bank and The International Finance Corporation have identified Samoa as a struggling credit environment, but policy improvements seek to target these issues.

Somoa’s First Credit Bureau

In 2015, Samoa launched its first Credit Bureau financed by The International Finance Corporation. Its intention was to bring efficiency and transparency to the money-lending market. This was a milestone for Samoa’s financial system, which was historically reliant on cash. It helped many different parties by providing confidence to lenders as borrowers built up their credit profiles. The Credit Bureau was fundamental in establishing a credit infrastructure in Samoa. Backed by the Data Bureau and the largest financial firms in Samoa, technological advancements such as cloud storage and information sharing among banks allowed credit footings to grow. The new technologies meant that lenders could deliver financial services at significantly lower costs to expand credit access to broader segments of the economy.

Expanded Credit Access

Domestic credit to businesses has grown by roughly 60 percent since the mid-1980s. The Strategy For The Development of Samoa, intended for the years 2016 to 2019, outlined plans to increase inclusivity to vulnerable groups and help end all poverty in the region.

Supported by the public domestic credit market, economic resilience accompanies private sector investment and development initiatives to expand credit access. Agriculture and fisheries are especially important to Samoa’s rural economic growth and development. The Development Bank of Samoa finances agriculture through the Agricultural Competitiveness Enhancement Program and Agribusiness Development Program. The Agribusiness Programs, Development Bank and Business Enterprise Center provide increased technical and financial support services for small business development.

Positive Results

Samoa has already left the list of the most undeveloped countries and is on its way to sustainable economic growth. With the continued implementation of credit and financial services aimed at the most vulnerable populations, Samoa has seen growth in per capita GDP of roughly $6,000 USD in 2017, up nearly $500 USD since 2015. 

While extreme poverty does not afflict the region, 20 percent of the Somoa’s population lives under the poverty line and struggles to obtain secure employment. The majority of this population lives in rural areas, lacking access to the resources available in urban areas. With the addition of these financial services aimed at reaching underserved communities and the larger rural economy, many industries are growing and the country is opening new doors for its people. As credit access in Samoa continues to spread, the economy and individual prosperity will also blossom.

– Joseph Ventura
Photo: Flickr