Archive for category: Global Poverty

Key articles and information on global poverty.

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Top 10 Non-Profit Human Rights Organizations

Top 10 Non-Profit Human Rights Organizations
Human rights are universal moral values that should protect individuals and allow them to live free and safe lives. Certain human rights include the right to life, freedom from torture, right to education, etc. These rights, however, are not always protected by regulations and laws, which can lead to ethical concerns. Non-profit human rights organizations focus on getting individuals the rights they deserve. Here are 10 non-profit human rights organizations.

10 Non-Profit Human Rights Organization

  1. Human Rights Watch
    The Human Rights Watch was created in 1987 in order to shine a light on the human rights violations that were happening in the Soviet Union and Eastern Europe. The non-partisan, non-governmental organization has gained recognition from citizen movements and other humanitarian causes. It now has 400 staff members working around the globe. Human Rights Watch investigates abuse and effectively spreads this information, increasing public awareness and working with government officials and corporations to make a change.
  2. Human Rights First: Based in America, Human Rights First puts pressure on those in power, whether government or private companies, to combat social injustice. Like the Borgen Project, Human Rights First creates campaigns that not only inform the public on issues but also encourage them to email and call Congress in favor or against certain legislative laws. Examples of their campaigns include ending modern-day slavery, stopping Trump’s Refugee Ban, and closing Guantameno Bay.
  3. Human Rights Foundation: Unlike other non-profit organizations, the Human Rights Foundation focuses on closed societies. Closed societies are authoritative regimes and dictatorships that restrict individual freedom and expression. Established in 2005, the Human Rights Foundation promotes freedom and democracy by supporting activists and exposing political and social corruption in totalitarian governments.
  4. Ella Baker Center for Human Rights: Ella Baker was an activist and a leading figure during the Civil Rights Movement. The Ella Baker Center for Human Rights works with people of color to attack racial injustice in the U.S, specifically the prison system. People of color are disproportionately targeted by the police, so it isn’t surprising that they make up more than ½ of prisoners in correctional facilities. The Ella Baker Center for Human Rights breaks the cycle of incarceration by organizing campaigns around the country to protest in support of their freedom. Their recent victories include closing five out of the eight youth prisons in California, creating Books Not Bars, starting community safety plans and more.
  5. Refugees International: Refugee International was created in 1979 to protect Indochinese refugees. Since then, this independently funded, non-profit human rights organization has provided hands-on assistance to displaced refugee families. Advocates travel to areas in need to assess the situation and compile crucial resources for refugees.
  6. FINCA International: By giving small loans to the poor, entire communities can grow. FINCA International addresses poverty through microfinancing and social enterprise. There are 20 community-based microfinance banks placed across low-income neighborhoods throughout the world. These services help build small businesses that, in turn, improve economic development and sustainability.
  7. Mending Kids: Mending Kids is a life-saving, non-profit human rights organization that sends surgical teams to over 60 countries to mend children in need of surgical procedures. The surgical staff trains local doctors in developing countries to effectively provide more complex surgical procedures. For children who are facing serious, life-threatening problems, host-families are set up around the U.S. to care for them while they undergo medical procedures
  8. War Child: War Child is comprised of three major offices in the U.K, Holland and Canada. The organization protects children who have been and who are still being affected by armed conflict. War Child’s approach includes improving access to education, helping children understand their legal rights through training and programs and offering support to children who endured mental trauma during acts of armed conflict. In fact, many of the staff have also been survivors of armed conflict.
  9. Habitat for Humanity: Families around the world are struggling to find affordable, decent housing. Habitat for Humanity works in the U.S. and 70 other countries helping low-income families apply for homeownership. In the case of natural disasters, Habitat for Humanity works with local communities to supply resources for those whose homes were damaged.
  10. Polaris: Polaris is named after the North Star, which was used during slavery as a guide to freedom. Today, Polaris serves as an assistance hotline to victims and survivors of human trafficking. As one of many non-profit human rights organizations focused on human trafficking victims, Polaris builds public data sets to better understand human trafficking. With this information, Polaris designs strategies to target the system and engages law officials to enforce plans that will stop trafficking both nationwide and internationally.

This list is only a fraction of the organizations in the world trying to make a difference. There are many groups fighting for important causes like ending world hunger and poverty, providing clean drinking water and providing medical aid. If you are looking to donate or volunteer, one of these top 10 non-profit human rights organizations would definitely be a good place to start.

– Lilly Hershey-Webb
Photo: Flickr

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How France’s Food Waste Law Helps Those In Need

How France's Food Waste Law Helps Those In Need
In July 2016, the French Parliament voted unanimously to fine supermarkets that throw away edible food (food that is almost expired or too ‘ugly’ or ‘misshapen’ to sell) or food that is usable as animal feed. France was the first country in the world to pass such a law during a time when food waste has become all too commonplace in first world countries. Supermarkets caught breaking those rules can be fined up to 75,000 euros or two years in prison. This unused food is donated to charities and distributed to those who are living in poverty. This is how France’s food waste law helps those in need.

Feeding Those In Poverty

Prior to this French law forbidding food waste, some supermarkets would deliberately spoil the food they could no longer sell in order to prevent “scavengers” from taking the food out of the trash. Some places would douse the edible or recently expired food in bleach to prevent people in need from going through their trash bins. This law forbids places from doing that.

A year after the law went into effect, over 10 million meals were shared with those lacking the necessary resources to purchase food, which is how France’s food waste law helps those in need. About 5,000 charitable associations work to distribute this food to those in poverty; food that would have, otherwise, been wasted. The St. Vincent de Paul charity in Paris relies heavily on donations from grocery stores. These food items go to churches where they are then distributed to families living in poverty.

Volunteers at the Paris Food Bank collect food from supermarkets and grocery stores every day. One of their locations in Paris handles thousands of tons of food to donate each year; all food that would have otherwise ended up in a landfill. These donations are growing. Charities are seeing an increase of 8 to 9 percent in food donations each year.

France’s Food Waste Law Inspires Other Countries

Now, two years after the law went into effect, less than 2 percent of food produced in France has been wasted. People in France waste less than half of the food the typical American wastes. France has become a leader in attempting to eliminate food waste.

Italy has also recently adopted legislation about food waste, and other countries around the world are interested in adopting similar food waste laws, such as Mexico and South Africa. The best part about the law is that it does not cost the state or a taxpayer any money.

There is no hard, scientific proof that this law is helping lift French citizens out of poverty, but it is important to note that poverty rates, which had been climbing in France since 2000, have now been stagnating since 2016 (around the same time the law was implemented). In 2015, 14.2 percent of French citizens were earning less than 60 percent of the median income. In 2016, this number decreased to 13.9 percent. Food that would have otherwise been thrown out is now being given to those who are impoverished, which is how France’s food waste law helps those in need.

Yet, this law isn’t the only solution to ending food waste and solving world hunger. Supermarkets and grocery stores only represent 14 percent of the total food waste, so this law needs to be spread out to other sectors such as schools and restaurants.

In France, supermarkets are no longer just a place for profit; they are now a place for charity and humanity.

– Ariane Komyati
Photo: Flickr

What Are the Requirements for Senate?

Requirements for Senate?
In anticipation for the upcoming midterm elections on Tuesday, November 6, 2018, 35 out of 100 seats will be sought by both incumbents and candidates running for the U.S. Senate. While elected positions, such as Congressional representatives in the House, are appointed positions, like that of Supreme Court justices, the requirements for Senators are more extensive. If so, then what are the requirements for Senate?

Election Requirements

According to Article I, section three, clause three of the U.S. Constitution, Senators must be at least 30 years old, surpassing the House’s age requirement of at least 25 years. Also, Senators must be naturalized U.S. citizens for a minimum of nine years and must be residents of the state for which they are elected (as written in Article Five, section three of the U.S. Constitution).

In contrast, the House only requires their representatives to have been naturalized for a minimum of seven years. So how and where did these requirements for Senate and House originate?

These criteria were established in the U.S. Constitution. According to the History, Art, and Archives of the House of Representatives, the criteria regarding a Senator’s state residency were founded in response to prior British laws, where “Under English Law, no person ‘born out of the kingdoms of England, Scotland, or Ireland’ could be a member of either house or Parliament.”

The minimum age requirement for Senators was deemed necessary in “The Federalist, No.62,” where Madison wrote that “senatorial trust” required a “greater extent of information and stability of character,” than that of representatives in the House. As Senators are seemingly granted more confidence than House Representatives, this raises the question — what are the requirements for Senate reelections?       

How Senate Reelection Works

From 1990 to 2012, incumbent Senators won reelection on an average of 87.6 percent, according to the Washington Post. From the year 2013, both incumbent and non-incumbent Senate winners spent an average of $8,650,000.

In this 2018 election, “10 Democratic incumbents are running for re-election in states won by President Trump, including deep red ones like North Dakota and West Virginia.”

Why these Requirements Matter in the 2018 Midterm Elections

The Trump administration is nearing its halfway mark, signaling an opportunity for Democrats to take control of the Senate in 2018, upsetting the current Republican majority in Congress.

However, FiveThirtyEight explained that this feat would be quite difficult. In order for Democrats to gain the Senate majority, the Democrats “must flip two of those nine [seats held by Republicans] — without losing any seats of their own.”

Senate Powers in Addressing Global Poverty

First, it is important to distinguish between the roles of the House of Representatives and the Senate. Although the majority party in the House is primarily responsible for scheduling, this is not the case in Senate. In Senate, scheduling is “generally mutually agreed by majority and minority leaders.”

Furthermore, Senate, unlike the House, focuses more on U.S. foreign policy. Given the Senate’s lessened degree of partisan scheduling relative to that of the House, the Senate holds the ability to influence the foreign policy matters, such as the international affairs budget.

Increased attention by Senate to this budget is vital to advancing poverty reduction efforts. Therefore, by understanding the requirements for Senate, we should vote for representation focused on alleviating global poverty in the Senate.

– Christine Leung
Photo: Flickr

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The Role of African Multilateral Institutions

African Union
Intergovernmental cooperation provides a multi-faceted approach for tackling regional and global issues. African multilateral institutions allow governments to work together on developing, unifying and improving livelihoods throughout the continent.

There are a variety of roles that these institutions can play: from increasing trade, improving infrastructure, peacekeeping, promoting good governance, developing technology, providing health and education. Intergovernmental cooperation can also serve a cultural role.

The challenges that Africa is facing at the moment are unique to the culture and political history of the continent.  African multilateral institutions can provide more endogenous solutions – ones that arise from within Africa by Africans.

The African Union (AU) is perhaps the biggest and most ambitious multilateral institutions in Africa. Founded in 2002 out of the previous Organization for African Unity, the AU aims to politically and socio-economically integrate Africa. The AU also promotes peace and stability and norms of good governance. Within the AU, The pan-African Parliament functions as a forum that allows delegates from each country to present key issues and bring back advice for heads of state.

There are several subdivisions and committees the AU oversees that focus on reducing poverty and sustainable development. For example, the New Economic Partnerships for African Development (NEPAD) uses funding from Western nations to improve economic and government institutions.

The African Union is also instrumental in promoting democratic processes. They utilize a unique volunteer Peer Review Mechanism, in which states that choose to participate agree to have their political processes evaluated by experts. The AU also send observers to cover all elections in African countries.

With the creation of the Peace and Security Council in 2004, the AU plays an increasingly important role in African security. Contrary to its predecessor, the African Union is able to intervene during conflicts. This can occur through authorizing peacekeeping missions or in cases of genocide and crimes against humanity through deploying military forces.

The AU intervention after the civil war in Sudan broke out was one the most rapid and influential responses from the international community and helped create peace through a self-determination referendum after South Sudan seceded. In Kenya and Côte d’Ivoire, the AU successfully resolved post-election violence. In Somalia, the sizeable AU peacekeeping mission used a comprehensive strategy to decrease the effects of the terrorist group Al-Shabaab and stabilize the country.

As the largest economic organization on the continent, the African Economic Community is another influential African multilateral institution. It consists of all African countries that have formed eight smaller blocs based on geographical proximity: Economic Community of West African States, East African Community, Economic Community of Central African States, Southern African Development Community, Intergovernmental Authority on Development, Community of Sahel-Saharan States, Common Market for Eastern and Southern Africa, and Arab Maghreb Union.

These regional organizations help integrate Africa’s economy and facilitate trade. The East African Community, for example, is the most integrated of these trade blocs, with free trade and plans for a common currency. The Economic Community of West African States does not only serve as a trade bloc but also engages in peacekeeping activities and has a formal judicial arm that aims to prevent human rights violations.

Together, these African multilateral institutions tackle the difficult challenges in development that the continent faces, from various angles and with multiple approaches.

– Liesl Hostetter
Photo: Flickr

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Mandela’s 100: 6 Ways to Alleviate Poverty in Africa

Mandela
Nelson Mandela is known internationally for his great activism for equal rights for all. Mandela was a South African political leader, beginning his career as a lawyer determined to free his fellow black Africans.

July of 2018 marked his centennial, and though he may no longer be alive, his legacy continues on. His anti-apartheid revolution improved levels of poverty in Africa, and his words of inspiration will forever impact others: “Like slavery and apartheid, poverty is not natural. It is man-made and it can be overcome and eradicated by the actions of human beings.”

The Nelson Mandela Foundation

Today, many people still celebrate Nelson Mandela’s work through the Nelson Mandela Foundation. Barack Obama recently gave a speech in celebration of Mandela, encouraging philanthropists everywhere to honor his work. Celebrities like Oprah, Jay-Z, Usher, Ed Sheeran and others are coming together to put on a concert for the Mandela 100 Fest in South Africa.

For those interested in celebrating Mandela, there are several ways to get involved. Action occurs at three levels:

  • Having the humanitarian mindset to care for supporting poverty in Africa
  • Being willing to communicate that concern and the need for aid
  • Finally jumping into action to provide the hands-on work.

Here are the most impactful ways to follow in Nelson Mandela’s legacy and help alleviate poverty in Africa.

6 Ways to Alleviate Poverty in Africa

  1. Believe in Humanity. Before one can bring about change and support for equality and basic human rights for all, the mindset has to exist. It is crucial to truly believe that all humans are deserving of the same dignity and respect. No cultural group is less human than another. Find commonality in humanity and advocate for justice in all corners of the Earth.
  2. Support Democracy. Democracy is the form of government that is ruled by elected officials in which members of the political boundary or state have been given the power to elect. Democracy means that everyone has a voice; thus, less oppression is allowed to take place. Though Africa as a continent is moving toward democracy, some countries remain oppressed, especially those in extreme poverty in rural areas. By supporting democracy in Africa, corruption and widespread violence can be eliminated.
  3. Empowerment. Being oppressed means that your voice isn’t being heard and that you are part of a marginalized, automatically disadvantaged group. The situation often seems hopeless when you are treated as insignificant. Any support for poverty in Africa is helpful, but when individuals feel empowered, minds expand and spirits rise. Be a part of lifting people up to feel empowered to seek out basic human rights — health, education, equality and social justice.
  4. Educate Yourself. With so many ways to access current events, it is fairly simple to stay current on global news. In developed nations, internet access is readily available to almost all persons. Take it upon yourself to seek out the facts and stay informed. Read the newspapers, subscribe to newsletters through your email or on your smartphone, or even search the internet for international happenings. It is important to be aware of credible sources versus not, so that you don’t fall victim to unnecessary hysteria. Another part of being informed about foreign affairs is to know who your public officials are as well as what policies exist for poverty in Africa — both pending in status and already in place.
  5. Dialogue. Don’t underestimate the power of communication. Poverty is a gruesome reality in Africa and many other underdeveloped nations. In a busy day-to-day life, there are many social interactions with people in social and professional circles. Many of these people will be aware of what is going on, and many will not. If people are having the conversations about poverty in Africa, its ramifications and how the U.S. as a leading global country can help, then the more likely it is for social action to ensue.
  6. Volunteer Your Time. Individuals in America and other developed nations can help alleviate poverty in foreign lands without having to travel or donate money. You can make a difference by taking action. Simple acts like calling your representative or sending an email can help bring attention to foreign aid. If time allows, meet with that representative to discuss the importance of supporting poverty in Africa. Contribute to an organization by organizing or volunteering for a fundraiser.

Leave a Mark

Nelson Mandela advocated for citizens of Africa to have the right to education, health, hunger, gender equality, literacy, peace and poverty while also supporting many charities. He has left his mark by not only his influence on political change but also his passionate and relentless motivation of people around the globe.

– Heather Benton

Photo: Flickr

How the Media Misrepresents Morocco

how the media misrepresents Morocco
Morocco lies in the west of North Africa and is slightly smaller than the U.S. state of California. The country is both scenic and fertile with the Atlantic Ocean to its west and the Mediterranean Sea to its north. It’s in how the media misrepresents Morocco, a country with a great history, that much of its beauty is lost.

As of 2015, Morocco is the fifth richest country in Africa. Since it is one of the most visited countries, it generates two-thirds of its GDP through tourism and telecommunications.

Media Misrepresents Morocco

How the media misrepresents Morocco, however, is through the depiction of its people’s faith, geographic location and traditionalism. An astonishing 98 percent of the country’s population are Muslims. They follow Islam—a religion that has a history of conflict and controversy with the Western world. Since September 11, 2001, the Western media has continuously exposed the wrongdoings of the Muslim faith causing further tension.

Moreover, Morocco is also an African nation, which, given the continent’s history of mass poverty, has only added to the media’s bias.

Finally, about 24 percent of the population is the Arabized Imazighen and about 21 percent are Imazighen—a community of people who are descendants of an Afro-Asiatic family which directly descends from the ancient Egyptians. The Imazighen are strictly traditional and often live in Morocco’s mountainous regions to preserve their language and culture.

An example of how the media misrepresents Morocco is how it has depicted the country as an ‘unjust’ and ‘unfair’ nation. One such report came from Freedom House’s 2015 report on journalism, which ranked Morocco lower than other nations which have a history of violence with reporters although it does not have a history of violence.

It is true, that in essence, the Qur’an is the source of law, however, Morocco does have a French-inspired legal code. After the legal system was met with pressures from Moroccan women for a more balanced system, in 2004 the parliament issued a more liberal and balanced legal code.

Constitutional Monarchy in Morocco

The country is headed by a constitutional monarchy, which shares its power with the parliament. The monarch does have power over religious affairs, the country’s armed forces and the national security policy. The monarch also has the power to choose the prime minister.

The monarch’s political affiliation and power have been a subject of much controversy and debate—particularly in the last 30 years. Nevertheless, the Moroccans have voted in favor of this system, though they did vote to expand the parliament’s power in 2011.

Modernization in Morocco

Another aspect of how the media misrepresents Morocco is that it seems to ignore how the country is rapidly modernizing. It instead capitalizes on how Morocco has kept much of its ancient architecture and customs. The Western media reports the country to be “stuck in its ways” and “archaic” but ignores how it has tried to promote women’s equality, human rights, religious tolerance and social liberalization while upholding its Islamic heritage.

Morocco has seen much migration and urbanization of its communities. Its standard of living is also rapidly increasing. In fact, it is the most visited African nation with 10.3 million tourists in 2016 alone.

Battling Malnutrition in Morocco

While one-third of Morocco experiences malnutrition, the government is actively trying to better the living conditions of those affected. For instance, in 1999 the Moroccan government set up a loan fund to help small businesses grow. In 2017, the government provided its impoverished communities with electricity and piped water.

Morocco, in fact, is one of the few Arab nations which could be self-sufficient in food production. It can produce two-thirds of the grains necessary for domestic consumption in a year. Morocco is trying to capitalize on this by attempting to use its great potential in hydroelectric power.

– Isabella Agostini
Photo: Flickr

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How to Tackle Poverty Reduction in Poor Countries

poverty reduction
Almost half of the world’s population lives in poverty, defined as having under $2.50 per day. Even more striking, more than 1.3 billion people live in extreme poverty, which means having under $1.25 per day on disposal. Most concerning, there are over 1 billion children exposed to substandard living conditions.

Several international organizations, such as the IMF, World Bank, and UN, work with governments and other organizations in the world’s poorest countries on daily basis. Their common mission is poverty reduction in poor countries and, ultimately, to end all forms of poverty once and for all.

However, what are the actions currently being implemented? Where can further attention and action be allocated to effectively alleviate poverty?

International Organizations and Governments

The weakest links are evidently countries that lack abundant natural resources, such as sub-Saharan African countries. These countries, such as Cameroon, Benin, and Angola, are home to the poorest people and their governments are unable to raise tax revenues or foster financial resource mobilization. Development of these countries could be achieved through a set of resources such as private investments and development financing.

Coordination with governments to address issues directly linked to the poorest of their population is vital. The Bolsa Familia program in Brazil exemplifies this notion, as the program has established a direct cash transfer to the poorest families. Over 48 million families are enrolled and this has led to extreme poverty dropping from 20.4 million in 2003 to 11.9 million in 2009. That is a staggering 8.5 million people who have been lifted from the severe poverty.

Facets of Poverty – Basic Needs

Typically, poverty is associated with one’s financial situation. Nonetheless, there are several other facets to poverty that must be addressed if extreme poverty, and eventually poverty altogether, is to be eradicated. Of these basic needs, five stand out in poverty reduction in poor countries:

  1. Quality education
  2. Access to healthcare
  3. Water and sanitation
  4. Economic/financial security
  5. Child participation

Improving the well-being of the world’s poor enables them to break the cycle of poverty. Providing a greater home environment and adequate nutrition fosters the success of children in school and of adults in training, which boosts their economic position. One example is Colombia, where education can be the gate key to breaking the cycle of violence and poverty and promoting economic growth on all cylinders.

On Data

In an increasingly data-driven world, developing countries can greatly improve their data on poverty, and by doing so, clearly identify where the poorest citizens live and what their exact needs are. In this way, they can allocate their resources effectively. Crucial improvements include the monitoring of different facets of poverty other than income, while encompassing more dimensions to the problem (social, economic, etc.).

There is much work to be done to resolve the unfortunate effects of poverty. However, solving the persistent problem requires striking straight to the roots.

Collaboration between international organizations, governments and other groups, updating and improving data as well as providing basic needs are all must-do’s in the fight against poverty reduction in poor countries.

– Roberto Carlos Ventura

Photo: Google

Top 10 Facts of Resiliency about Poverty in Ghana

Top 10 Facts about Poverty in Ghana
In the last two decades, poverty in Ghana has drastically reduced due to an increase in economic factors, despite poverty still dominating more rural areas where there is not enough access to food and other basic necessities. 

Top 10 Facts about Poverty in Ghana

  1. Between the years 1991 and 2012, the poverty rate in Ghana has been cut by more than half, from 52 percent to 21 percent.
  2. In 2011, the country was considered to have a middle-class economy. Ghana accomplished such status by obtaining a more skilled labor force and geographical mobility.
  3. Despite the booming economic growth, poverty in Ghana is still prevalent. Poverty has shifted from urban areas to now more rural areas of the country; in fact, rural poverty is almost four times higher than urban poverty.
  4. According to UNICEF, the poverty reduction rate has declined in recent years. There is only a 1.1 percent reduction rate per year since 2006.
  5. The northern region of the country makes up the largest number of citizens in poverty in Ghana. Since the 1990s, the poverty rate in the northern region has dropped from 55 percent to 50 percent.
  6. In Ghana, children are 40 percent more likely to live in poverty than adults. UNICEF states that 1.2 million households are unable to supply an adequate amount of food for their children.
  7. Overcrowding and homelessness are some of the many reasons for poverty in Ghana. According to Habitat for Humanity, many houses in the country lack ventilation and basic amenities.
  8. In more rural areas, outbreaks of cholera are common from lack of inside toilets in homes. Using the bathroom outside or in public pits contributes to the passing of hazardous diseases.
  9. The World Food Program reports that twenty-seven percent of households are at risk of hunger in Ghana. About a third of the population is living on less than $1.25 a day, which means obtaining food is extremely difficult.
  10. In 2006, infant mortality rates were cut by half, although healthcare is still poor in the country. The northern regions only have nine percent of hospitals even though it holds a majority of the population. Citizens in the northern region of Ghana have to travel far distances to reach hospitals and travel costs can be high.

Combating Challenges

Ghana is continuing to grow despite its problems with poverty. In fact, the nation is considered to have one of the world’s fastest growing economies in the world. At the end of 2017, the economy increased for the fifth successive quarter.

The economy has increasingly focused on agricultural growth, which has created more jobs. Ghana’s government has also been spending money on educating workers that in return will create more money for the country. One of Ghana’s greatest challenges for the future is spreading development evenly throughout the country, and one can only wish Ghana success in combating such an issue.

– McKenzie Hamby
Photo: Unsplash

Comparing Urban Poverty and Rural Poverty

Urban and Rural Poverty
Great urbanization over the past several decades has led to the phenomenon coined as “the urbanization of poverty.”  The name generally refers to the migration of poor communities from rural areas into urban centers in the hopes of greater opportunity and increased quality of life.

Urbanization of Poverty

Numerous analyses view this urbanization as a positive for poor populations; urban areas tend to have less poverty and better access to quality jobs, schools, water and sanitation sources, hospitals, etc. Yet, several measures of urban poverty and rural poverty fail to take into account the inflated cost of living and the minutia behind general statistics.

On the whole, the poor are urbanizing at a faster rate than the general population; the share of poverty located in urban areas in developing nations rose 11 percent from 2002-2012. This has compelled some to believe that poverty is now mainly an urban problem.

So, the million-dollar question: what is the difference between urban poverty and rural poverty, and is poverty indeed an urban issue?

Issues in the City

Not only are cities more expensive for basic expenses such as housing, but poor city-dwellers have additional costs in the form of food and water.  Many rural communities grow their own food and collect their own water, which comes with its own costs — predominantly kids dropping out of schools to aid their families.

Urban settlements add these items to their monetary costs, which often leads to increased instances of malnutrition and hunger. This also means that urban families are more vulnerable to pricing shifts. While it seems logical that individuals would be closer to certain resources in urban settings, quality access remains an issue for poor, urban households.  Many city slums have a latrine shared by as many as 50 households.

Such facilities are overused to the point of water source contamination. Less than 10 percent of the population in most African cities have adequate provision for sanitation. As many as 100 million city dwellers in low-income nations have no toilet facilities that they can use or afford, including no access to free public toilets.

Urban Overcrowding

Overcrowding compounds many issues of poverty in urban settings.  A water tap in a rural community may be used by only a hundred persons.  In contrast, an urban tap in a poor area is often drained by over 5,000.

The rapid nature of urbanization has led to squatter towns, slums and project areas that are typically not safe, sanitary or adequate. This overcrowding also makes urban poverty populations more susceptible to decimation due to poor weather or a natural disaster, which will wipe out more people in an urban setting.

In addition to often being shanty, urban housing is also more difficult to sustain. Evictions leave hundreds of thousands desolate and on the streets.  In rural areas, generally, the communities are more tradition based and losing family housing is uncommon.

Urban Poverty and Rural Poverty

Urban poverty and rural poverty share many of the same core issues: convenient access to water and sanitation, housing, food, education and health services. Yet, aid to urban poverty takes on an entirely different form from aid to rural poverty.

The focus of rural aid ought to be on improvements such as education and water access. Urban aid, on the other hand, must take into account growth and sustainability — building quality, affordable housing, creating large-scale water and sanitation systems, ensuring safety from street violence and more.

Tough Calls

While urban poverty has steeply risen, a vast majority of the world’s poor still live in rural areas, with most analyses reporting 75 percent of the poor and others reaching over 80 percent. Thus, while urban poverty perhaps presents a slightly more complex picture, rural poverty remains pervasive.

Additionally, urban poverty is often easier to aid largely due to the crowded areas in comparison to sprawling rural locations. This presents a strange dichotomy for aid organizations: help urban poverty and thus more people per dollar, or help the area with the largest portion of the world’s poor.

– Jessie Serody
Photo: Unsplash

Solving Key Issues of Credit Access in Paraguay

Paraguay
The global indicator “Doing Business” ranks credit access in Paraguay at a not-too-shabby 122 out of 189 countries. The Western Hemisphere Credit and Loan Reporting Initiative stated that Paraguay‘s economy was ‘improving;’ still, the government’s 2014-2018 initiative, National Financial Inclusion Strategy (ENIF), identified two major issues it wishes to mitigate. Namely, it indicated that micro, small and medium enterprises (MSMEs) needed better access to approved loans and that 17 percent of the population had no access to a bank.

What is the ENIF?

The Paraguayan government — working alongside the World Bank and the FIRST Trust Fund Initiative — created the National Financial Inclusion Strategy (ENIF) as part of Paraguay’s National Development Plan. The main goal of this initiative is reducing poverty and promoting economic growth.

The strategy intends to achieve this goal by creating better credit access in Paraguay, as well as access to other financial services for the entire population. The project’s vision explains it best: “Quality and affordable financial services for all people in Paraguay who want them through a diverse and competitive marketplace.”

In order to achieve this vision, the initiative analyzes the issues with Paraguay‘s current state of financial inclusiveness by comparing the objectives to the gap of the “current financial profile versus the financial needs of the five primary income groups.”

It then creates a strategy for closing this gap by identifying the end goals — the ‘key performance indicators (KPI)’ — and a list of tasks to help achieve this goal. Working groups under each KPI then focus on completing these tasks.

Bank Access

About 69 of the 224 districts in Paraguay with more than 2000 inhabitants (17 percent of the population) have no access to banks, bank agents or ATMs because financial services simply cannot survive in an area with such a tiny client base.

This makes access to financial services for the population living in these rural areas very difficult, if not impossible, to obtain. For the two-thirds of this population that live in extreme poverty, this can also prove quite dangerous. Without access to credit, savings, or even government subsidies they can run out of money to buy food and are ill-equipped to handle an economic shock such as an illness or a death.

The ENIF proposes increasing the use of mobile phones and the coverage of mobile networks in the 69 “financially excluded” districts (with an emphasis on the 17 vulnerable districts) to provide those in need with access to money through mobile financial services.

By coordinating with the working groups in other KPIs, ENIF also wishes to provide such populations with access to financial services such as credit, insurance and savings. Along with this, the working group plans to create financial literacy courses and to design products and initiatives that encourage these vulnerable populations to save their money.

Loan Access for MSMEs

While 64 percent of 1.1 million MSMEs wish to have access to a loan, only 35 percent of MSMEs have had the ability to borrow in order to fund their operations. One-fifth of these firms reported not even applying for loans because they anticipated outright rejection.

To the ENIF, this indicates issues with business credit access in Paraguay and a need to improve the loan system. Improving such access will not only help businesses gain more capital for the country, but it will also improve job growth and increase access to opportunity for those in need.

The ENIF believes that credit risk systems of Paraguay’s main bank, Banco Central de Paraguay (BCP), and the collective savings and credit cooperative institution Instituto Nacional de Cooperativismo (INCOOP) should communicate with each other in order to create a collective credit information system. This partnership would allow for better monitoring of indebtedness and to ensure responsible credit is given.

ENIF’s Efforts

Along with this, the ENIF will also help in the creation of other regulatory measures such as:

  • Speeding up the provisioning of micro-credit loans
  • Establishing accuracy, timeliness, disclosure and recourse standards for all institutions
  • Exploring the possibility of implementing factoring and leasing products on the market
  • Monitoring, coordinating and implementing the progress of these KPIs through the Executive Secretary and Financial Inclusion Team. Each working group will send annual reports to the Executive Secretary and a measurement and evaluation system will track their progress
  • Issuing a survey every two years to compare the rates at the individual level to those in 2013

Room to Improve

Hopefully, with a great coordinated effort, the ENIF will see the data of financial inclusion improve and with it, will also see a greater reduction in the number of citizens in poverty. Even with the economy resting at a decent place, a good government knows that its country always has room to improve.

– Elizabeth Frerking
Photo: Flickr