Archive for category: Global Poverty

Key articles and information on global poverty.

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10 Facts About Poverty in Brazil

Facts About Poverty in Brazil
The biggest country in South America is dealing with one of the most drastic poverty issues on Earth. Despite billions of dollars invested in event tourism like the World Cup (2014) and the Olympics (2016), Brazil’s economy has begun to spiral downward as the country faces its biggest decline in over a decade. These crucial facts about poverty in Brazil offer insight on the issues that plague them.

Poverty in Brazil

  1. The homeless population is revolutionary
    One of the recent facts about poverty in Brazil is that squatters there have collectively chosen to occupy abandoned hotels and are now facing the threat of eviction. One example is the Mauá Occupation, which houses over 1,000 people that make up around 237 families. Mauá was a unique idea back in 2007 when the homeless population was barely surviving on the streets and began taking up land by way of force. Now, it has become a full-blown movement. Like many countries, Brazil suffers from gentrification and increased living costs. Brazil’s gentrification has created a revolution of homeless people occupying space both as a protest and out of necessity. This past November, over 20,000 homeless marched throughout the city in direct protest of the housing inequity.
  2. Slavery ended only 130 years ago; inequality still devastating
    In 1888, Brazil became the last country in the Western Hemisphere to abolish slavery, and the social, economic and moral ramifications of it still ripple throughout the nation. This is one of the more subtle and lesser spoken facts about poverty in Brazil because it reflects an ugly part of a recent history. Known as Afro-Brasileiros, black and brown Brazilians make up 51 percent of the nation’s population and suffer from discrimination and exclusion more than their lighter-skinned neighbors. Afro-Brasileiros also make up the majority of the homeless and poor population, and only seven percent of the city’s rich self-identify as such. Despite being known as a racial democracy, 80 percent of Brazil’s richest one percent are white, while only 13 percent of black and mixed-race Brazilians between 18 and 24 are currently enrolled in college. Afro-Brasileiro activism takes many forms; the Quilombos are descendants of slaves fighting for reparations. Another group focuses on the disproportions of blacks dying at the hands of Brazilian police. They have the slogan #VidasNegrasImportam, which translates to “Black Lives Matter.”
  3. New spending cap is making matters worse
    The new spending cap, known as PEC 55, will cut public spending for programs that help the poor. A U.N. official lauded it as the most socially regressive austerity package in the world. With 60 percent of Brazilians opposing it, the 20-year spending freeze inducted by President Temer has been protested and deemed a direct attack on the poor by many analysts.
  4. Unemployment was once slow growing; now it’s much faster
    Since the end of the World Cup in 2014, Brazil’s economy has been steadily declining to a new low. Unemployment grew from about six percent in December 2013 to nearly 12 percent in November 2016, despite almost 30 million Brazilians rising out of poverty between 2004 and 2014. Economic inequality is now expected to increase and around 2.5 million more Brazilians will be forced into poverty in the coming years.
  5. Water everywhere but not much to drink
    Roughly 20 percent of the world’s water supply is in Brazil yet much of the population suffers from a water shortage. The problem is that water is being used to power the economy, not the people. This is actually one of the older facts about poverty in Brazil, as the nation’s water misallocation has always been notoriously underserving. More than 60 percent of the nation’s energy is from hydropower plants while 72 percent of the water supply is consumed by agriculture via irrigation. In fact, Brazil is one of the most water-dependent nations in the world. More than eight percent of its GDP is agriculture and agroindustries, making it the world’s second-largest food exporter. Allocation of most of the nation’s water goes to the business sectors, and between 2004 and 2013, there was only a 10 percent increase in sanitation networks among the poorest 40 percent (i.e., households with toilets).
  6. From an emerging economy to a shrinking one
    Formerly an emerging economy growing at a rate of 7.5 percent in 2010, it shrunk at about the same rate over the last two years. Shrinkage is expected to increase due to President Temer’s privatization plan, and around 57 state assets are set to undergo a privatized makeover. From highways to airports and even the national mint, the privatization is in an effort to increase employment and improve quality of the service provided by the sectors. There is some proof that this could work; back in the 90s, the privatization lead to the considerable modernization of several crucial sectors. The best possible scenario still leaves the majority of the population, specifically the poorest, out of the financial loop.  Attracting international interests is great for the richest population looking to sell land to the highest bidder which happens to be China.
  7. Deforestation of the Amazon by China hurts locals directly
    China’s overwhelming demand for food meets Brazil’s immense agricultural production in a way that primarily benefits the wealthiest of Brazil. The Brazilian government has been selling off large parts of the Amazon to China directly, ironically in an effort to help China’s pollution while hurting Brazil’s sensitive ecology and economy. China’s deforestation of the Amazon temporarily increases employment in Brazilian cities near the forest, but then once first stages of production are over, massive layoffs result in a plummet of employment with the social climate (increased crime and violence) going with it. The massive deforestation even threatens Brazil’s ecological promises involved with the Paris Agreement.
  8. Infant mortality has dropped significantly but could be lower
    As of 2016, Brazil has significantly lowered it’s infant mortality rate from about 53 deaths per 1,000 (circa 1990) live births to about 14. While this is quite an achievement for such a developing country with so many social problems, UNICEF, the organization most responsible for helping the decline, remarked that the indigenous children of Brazil’s mortality rate is twice as high as those of city-born children. This shows that even for countries with relatively low levels of mortality, greater efforts to reduce disparities at the sub-national level are still needed. According to UNICEF, back in 2013 at least 32 municipalities still had an infant mortality rate of 80 deaths per 1,000 live births.
  9. Worker’s Unions are going extinct
    A recent law passed by President Temer allows employers to bypass nearly all hurdles set up by unions by eliminating a “union tax” that generates funding for worker’s unions. Designed to aid multinational corporations and not workers, the “reform” has been criticized by the International Labor Organization (ILO) as being in violation of international conventions. This permits inhumane working conditions and legalizes free labor. Legislation changes like this alter the future of the Brazilian workforce exponentially as multinational companies begin their migration into the Amazon.
  10. The right conditions for slavery
    Temer altered the definition of slavery so that it is defined by the victim’s freedom to leave. Meaning if a worker is kept in all the same living conditions as slavery, but not being physically forced to stay, it is to be considered legal labor. This is an emerging fact about poverty in Brazil because it has not happened yet, but legislatively, the absurd conditions do exist and the threat of slave labor is very real. This critical alteration of the definition has lead to the need for deeper investigations and, in alignment with the new changes, requires a police report with every case, creating more complications with each case. This drastically hurts the effectiveness of the ILOs ongoing fight against slavery which saw the liberation of more than 30,000 slaves in Brazil since 2003. The migration of businesses to the Amazon has made investigations much harder for the ILO and the conditions under which slaves work have gotten more brutal as well.

– Toni Paz
Photo: Flickr

Infrastructure in Suriname

infrastructure in Suriname
Infrastructure in Suriname is on both ends of the spectrum when it comes to quality, with some facets being up to date and self-sufficient, while others have fallen into serious disrepair due to improper maintenance and oversight. Suriname is sparsely populated in most areas, with most of its people inhabiting the capital, Paramaribo, and the surrounding regions. Most of the country is heavily forested making habitation and transport impossible.

Paramaribo is the country’s main hub with a vast majority of infrastructure in Suriname focused in this one city. Roads, railways, bridges, imports, and exports are all centered in Paramaribo making it the main support for Suriname’s economy. This translated to economic instability with little to no possibility of growth. Unless infrastructure in Suriname is expanded to the outer regions of the country and thence to its neighbors, it will continue to deteriorate and threaten an economic collapse.

Water, railway, and flight are the main modes of travel and transporting goods across the forested areas of Suriname. Unfortunately, many of the roads and airport runways are unpaved, making the operational expenses a fiscal nightmare. According to the 2013 World Economic Forum Global Competitiveness Report, the quality of Suriname’s roads ranks 71st out of 148 countries, while the airports and railroads rank 104th and 108th, respectively.

Infrastructure in Suriname is constrained by several factors:

  • electricity tariffs
  • transportation costs, and
  • monopolization of telecommunications by Telesur, a state-owned company.

Despite this monopolization, however, service and access to telecommunication services are far more advanced than all other aspects of the country’s infrastructure, ranking 7th in the 2013 World Economic Forum Global Competitiveness Report. These last few years have seen a rise in government plans for developing infrastructure in Suriname, all focused on increasing the country’s status as an economic competitor. Telecommunication networks are being opened to the private sector, allowing for more competitors and lower rates.

The government’s main concern is developing the Paramaribo port (as the country’s largest) to increase its capacity to handle more exports. This port currently handles from five to six hundred vessels. Exports include 40 percent of the country’s oil (taken from the Tambaradjo oil field), gold, bauxite, rice and tropical wood from its forests.

Investment from the public and private sectors have enabled the development of the physical structure of the ports in Suriname, along with modernization of cargo holds and storage. This not only allows for easier transport but ensures greater protection of goods.

– Kayla Rafkin

Photo: Flickr

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Looking from All Angles: Fighting Poverty with Humanity Unified

Looking from All Angles: Fighting Poverty with Humanity UnifiedRwanda seems to be the focus of many humanitarian organizations, yet the job never seems to be done. After a conflicted history culminating in genocide, its citizens have been left impoverished and in desperate need of support from all walks of life. The country is home to around 11.6 million people and is landlocked by the Democratic Republic of Congo, Tanzania, Burundi and Uganda. Organizations like Humanity Unified are enhancing their approaches to fighting poverty to improve the lives of those that live here.

Flashback to How It Began

Rwanda has long been an ethnically divided country. The citizens were faced with a brutal civil war and genocide in 1994 that left more than 800,000 dead. This conflict also caused an extreme economic downturn that left survivors in ruin.

The Borgen Project had the opportunity to interview Maria Russo, founder and executive director of Humanity Unified. She was a travel writer and her husband a web developer and photographer; they combined their talents to create the organization. Russo says she “became interested in international development, particularly in the areas of women’s issues as pertaining to gender inequality, education for women and girls and global food security”. The organization they created uses a variety of approaches, with a focus on women, to combat poverty globally and specifically in Rwanda.

A Big Picture Approach

Russo states that the goal of Humanity Unified is “empowering communities to rise above poverty through education, food security programs and economic opportunities.” It does this through a varied program that includes partnering with local NGOs to accomplish tasks and employing a team directly in Rwanda because, as Russo says, “this creates a greater sense of trust between our team and the communities we work with”.

Humanity Unified invests in women in several ways, beginning with education. Its education programs include specific focuses on human rights, business, literacy and health. They specifically target women because they are ten times more likely to use this education to better their communities. The organization also collects donations to provide food security to rural communities that are commonly neglected by aid programs. Lastly, it provides economic opportunities through business, leadership and vocational training. Several communities of rural women farmers have benefited from this training as well through positive masculinity for their male partners.

Proven Success

So far, Humanity Unified’s methods have proven effective. Eighty-five percent of women said their lives had changed since becoming involved with these programs, 96 percent were able to purchase health insurance for their families, and 96 percent reported that violence against women had decreased within their communities. The organization also works to connect personally with these women in what they call a “humanist approach”. They make visits to Kigali, the country’s capital, where women tell them of their specific successes and the ways in which their individual lives have improved.

The hope is that the organization will only expand in 2018. Russo elaborates that “the goal for 2018 is to continue to support the women in their entrepreneurial endeavors and provide education on how to properly run a small business”. With the support of donors, volunteers, local NGOs and the people themselves, Humanity Unified will be able to accomplish these goals.

– Megan Burtis

Photo: Flickr

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How the US Benefits from Foreign Aid to Ghana

How the U.S. Benefits from Foreign Aid to GhanaAccording to Tamela Noboa of the Baltimore Sun, foreign aid makes up less than 1 percent of the U.S. budget. As with many countries around the world, the U.S. benefits from foreign aid to Ghana, and these benefits could be multiplied if the U.S. contributes more to its foreign aid budget.

The U.S. always had an unofficial relationship with Ghana in supporting refinements of its power sector, strengthening healthcare and expanding access to education. Ghana possesses a level of dependency upon assistance given to it by the U.S., a dependence by which a cut in foreign aid could further hinder the country’s development. Since foreign assistance makes up such a minimal amount of the U.S. budget, increasing the amount of foreign aid would advance both countries.

The U.S. benefits from foreign aid to Ghana in these ways:

  1. Epidemics such as Ebola can be minimized and contained away from U.S. borders. According to David Ofori-Adjedi and Kwadwo Koram in an article for the Ghana Medical Journal, the possibility of the Ebola virus appearing in Ghana was high, due to the continuous presence of the virus in Guinea, Sierra Leone and Liberia in 2014. The likelihood of Ebola spreading in Ghana stems from its ability to manage an outbreak if it arises. As Bill Gates pointed out in an op-ed for Time, using foreign aid to ensure that countries such as Ghana are prepared to address an outbreak can keep it from spreading globally.
  2. The U.S. Embassy in Ghana believes that foreign aid contributes to strengthening cultural relationships for stable networking. For instance, foreign aid reinforces markets for U.S. products, opening up possibilities for future partnerships.
  3. Continuing foreign aid distribution to countries like Ghana contributes to sustainable change that aims to improve countries on a systemic level, allowing the country to further develop and eventually lessen its need for foreign aid.
  4. Investing in foreign countries creates the opportunity for nations like Ghana to invest back in the U.S., creating jobs across the country.

According to the U.S. Department of State, Ghana is currently facing a $1.5 billion shortfall in its funding for infrastructure projects. Continued support of these needs through foreign aid can ensure that the U.S. benefits from foreign aid to Ghana by helping the country reach its potential and become a bigger participant in the global economy.

– Christopher Shipman

Photo: Flickr

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New Laws Address Women’s Rights in Timor-Leste

Women's Rights in Timor-Leste

The Democratic Republic of Timor-Leste, a country located in Southeast Asia, gained its independence from Indonesia on May 20, 2002. This came after a popular vote in favor of becoming independent on August 30, 1999. As one of the world’s youngest and poorest nations, it is facing numerous social, political and economic issues. The country is not ignoring its issues but is instead working to improve them daily. One subject that is currently being brought to public attention is women’s rights in Timor-Leste, or the lack thereof.

Women in Timor-Leste face daily challenges that their male counterparts do not face to the same degree. One of these challenges is of an economic nature. Many women in Timor-Leste do not have the same training opportunities as men, which limits their job options. This limited access to jobs became a large issue after the conflict that Timor-Leste faced following the vote for independence in 1999 and before it was declared a sovereign state in 2002. During this time, nearly half of Timorese women were widowed due to widespread violence. These women became the sole provider in many households, and with economic options greatly limited for women in the country, many were left in poverty.

The government of Timor-Leste has recognized the economic challenges faced by women in the country. It is for this reason that Timor-Leste’s 2014 Country Gender Assessment includes an area dedicated to laying out a framework for advancing the economic opportunities of women. This framework includes increasing women’s participation in the labor market by improving training opportunities and implementing the Secretariat of State for Professional Training and Employment Policy’s gender mainstreaming strategy. These efforts will help to increase the number of financially independent women in Timor-Leste. In this area, women’s rights in Timor-Leste are advancing tremendously.

Another area of women’s rights in Timor-Leste that the country has struggled with is domestic and gender-based violence. Domestic violence is the most reported crime to the Vulnerable Persons Unit of the National Police by Timorese women, showing that this is a serious issue that is being faced by numerous women in the country. The government of Timor-Leste is determined to end this cycle of domestic violence. In addition to including women’s rights in the new constitution, the nation has also passed violence-specific legislation. This includes the Law Against Domestic Violence, which was passed in 2010 and defines domestic violence as a public crime. Timor-Leste also adopted the National Action Plan on Gender-Based Violence, which provides a strategy of prevention for domestic violence, as well as a number of services for survivors of gender-based violence and domestic violence.

In addition to the legislative actions being taken to reduce domestic violence in Timor-Leste and promote the economic advancement of women, government officials are also speaking out on the subject of women’s rights in Timor-Leste. The Prime Minister of Timor-Leste, Rui Maria de Araújo, made a statement at the Global Leader’s Meeting on Gender Equality and Women’s Empowerment in 2015. He stated that Timor-Leste is fully committing to “achieving gender equality and empowering all women and girls.” There is hope in this statement, and the lives of the citizens of Timor-Leste can only continue to improve as the rights of women continue to increase.

– Nicole Stout

Photo: Flickr

US Cracks Down on Venezuela’s Oil-Backed Cryptocurrency

Venezuela's Oil-Backed CryptocurrencyVenezuela is a region rich in oil and minerals, yet it suffers from poverty and political turmoil. Venezuelan president Nicolas Maduro is launching a new blockchain currency called Petro, an oil-backed cryptocurrency. The U.S. believes this to be an attempt to circumvent sanctions against the Venezuelan government and is cracking down on Venezuela’s oil-backed cryptocurrency.

Venezuela suffers from the “resource curse,” a phenomenon whereby its large reserves of oil negatively impact its economic growth and stability. Rather than a blessing, these energy reserves lead to fraud, corruption, wasteful spending, military adventurism and the authoritarianism of the Maduro regime. This curse exacerbates global poverty through the destabilization of the oil industry, dulling the effect of foreign assistance and creating a breeding ground for terrorism and instability.

Although the country has a vast supply of oil money, instead of going to Venezuela’s poor, the money ends up in the pockets of the rich. U.S. Senator Marco Rubio tweeted on February 9, 2018, regarding the Maduro regime, “Soldiers eat out of garbage cans & their families go hungry in #Venezuela while Maduro & friends live like kings & block humanitarian aid.”

Venezuelans are deprived of human rights guarantees and press freedoms, facing political persecution and public corruption by the Maduro regime. The U.S. regards the Maduro regime as a dictatorship, whose power has overridden the democratic will of Venezuelans. The nation’s population is greatly subjected to sex trafficking and forced labor, sexual exploitation and domestic servitude. People from other nations are trafficked for sex and labor in Venezuela. Cuba trafficks thousands of Cuban citizens and doctors into forced labor in Venezuelan social programs, in exchange for the provision of resources to the Cuban government.

The most recent U.S. sanctions were imposed in August 2017 against Venezuela’s dictatorship, blocking U.S. citizens from buying new debt, bonds, dividends or other distributions or profits from Venezuelan government-controlled entities and its state oil company, Petroleos de Venezuela (PDVSA). This followed December 2014 sanctions imposed by the U.S., aimed at preventing U.S. entry by persons involved in the erosion of human rights guarantees, political persecution and public corruption. These sanctions do not target the people or the economy of Venezuela; they are aimed at protecting the will of Venezuelans and preventing U.S. involvement with the corruption of the Maduro regime.

Maduro responded to these sanctions by implementing strategies to free the oil-centered economy from the U.S. dollar, despite its universality in global trade. In September 2017, Maduro ceased publishing Venezuelan crude oil market prices in U.S. dollars, instead publishing prices in Chinese yuan. His December 2017 announcement to implement the oil-backed cryptocurrency was in direct response to the August 2017 sanctions, stating that Petro could “help defeat the financial blockade.”

Cryptocurrency is decentralized, uncontrolled by banks or governments. It can benefit those living in politically unstable regions, because the government can neither control its value nor transfer it from state to state. In Venezuela’s case, the cryptocurrency will be backed by oil, an industry largely controlled by dictators. Because Petro is a cryptocurrency, it is difficult for the U.S. government to regulate, threatening the U.S. sanctions that prohibit investing in PDVSA.

Petro is one of many foreign exchange (FX) mechanisms introduced by Venezuela. Most of the FX failed to meet market demand for dollars, resulting in Venezuela’s robust black market. Although FX is prohibited on the black market, it is the driving force of hyperinflation. Continuously on the rise, one U.S. dollar is now equivalent to 9.9875 Venezuelan bolívar.

The U.S. addressed Venezuela’s oil-backed cryptocurrency in a letter by senators Marco Rubio and Bob Menendez to the U.S. Department of the Treasury, stating “we are concerned that a cryptocurrency could provide Maduro a mechanism by which to make payments to foreign lenders and bondholders in the United States, actions that would clearly thwart the intent of U.S.-imposed sanctions.”

In early February 2018, U.S. Secretary of State Rex Tillerson toured Latin America and the Caribbean. Afterward, Tillerson alluded to U.S. considerations of restricting oil sales from Venezuela due to its worsening political situation. Developments in trade sanctions are imminent as the U.S. cracks down on Venezuela’s oil-backed cryptocurrency.

In opposition to the Maduro regime, the Venezuelan Parliament stated that Petro’s creation only serves to “evade financial sanctions, [and is] openly violating the Constitution and legitimizing illicit transactions.”

As the U.S. cracks down on Venezuela’s oil-backed cryptocurrency, the government aims to combat the use of Petro to circumvent U.S. sanctions, prohibiting investors on U.S. soil from profiting or investing in the PDVSA, the driving source of Venezuela’s poverty and humanity crisis. These policies and sanctions will be heavily enforced in the face of Petro’s introduction to the market and will serve to reject the political corruption and economic failure to its people of the Maduro regime.

– Alex Galante

Photo: Flickr

Financial Reforms Aim to Expand Credit Access in Montenegro

Credit Access in Montenegro

As with many countries in the region, the real estate bubble that burst in 2008 exposed longstanding weaknesses in the Montenegrin financial sector and left a laundry list of obstacles for the country to overcome in its wake. These obstacles have become major inhibitors of credit access in Montenegro.

As is often the case, small and medium-sized enterprises have been hit particularly hard by this credit squeeze. Fortunately, the international community has stepped in to improve short-term credit access in Montenegro in the short term while the Montenegrin financial sector modernizes for the long term.

Prior to 2008, the Montenegrin financial sector was plagued by poor governance, little oversight and inadequate and outdated financial infrastructure. In the wake of the crisis, key stakeholders have been working to rectify these problems against a backdrop of ongoing deleveraging. While these changes were needed, this restructuring has left Montenegrin banks incapable of meeting the demand for credit.

Business owners who can secure loans from Montenegrin banks complain of high interest rates, extensive collateral requirements and overall a very risk-averse lending policy. For many business owners, securing a loan from a Montenegrin bank is simply not an option. This gap between supply and demand is being filled in two different ways: by the informal economy and by international actors.

Many would-be business owners (and individuals) have turned to the informal economy to meet their financing needs. This often entails borrowing under the table from loan sharks. Not only does this open borrowers up to unnecessary risk, but it also presents an obstacle to modernizing the financial sector.

The other option is to secure financing from international actors. Many organizations are working to provide improved credit access in Montenegro while the country’s financial sector gets back on its feet. These include the EBRD, the Investment-Development Fund of Montenegro, internationally-backed microfinancing institutions and other international organizations that have stepped in in a microfinance capacity.

There are signs that positive change is coming. In late 2017, the government passed a law aimed at comprehensively reforming the financial sector and improving credit access in Montenegro. The law creates new financial instruments available to business owners and opens up new opportunities for those struggling to secure a loan to avail themselves of financing and guarantees from the government.

The law also updates the regulations that govern the Montenegrin financial industry and help to bring Montenegro into line with international best practices. It is hoped that these laws will help to prevent another disaster like 2008 and ensure that credit access in Montenegro will not be affected by the next economic downturn. This legislation serves to prove that developing economies often need just a little bit of international support while they work to modernize their financial infrastructure, and that this support enables them to create improved frameworks that provide greater confidence moving forward.

– Michaela Downey

Photo: Flickr

How Credit Access in Dominica Ensures Growth

How Credit Access in Dominica Ensures Growth

It is particularly important for people to have credit access in Dominica. Borrowed money is the main reason why Dominica has been able to rebound following Hurricane Maria individually and on a national level.

Two Category 5 hurricanes devastated Dominica in September and October of last year and caused heavy damage to the country’s infrastructure and the livelihoods of its citizens. Half a year later, the situation in Dominica has improved. A majority of water systems have been repaired, most schools have reopened and diverse foodstuffs have reappeared on market shelves.

There is still a need for reconstruction. Forty-four percent of the buildings on the island were destroyed, and another 55.5 percent had some degree of roof damage. As of early February, electricity was unavailable in 80 percent of Dominica. Credit access in Dominica functions as an important crutch to help people rebound during this time of reconstruction. A large portion of the population had their livelihoods threatened, especially those in agriculture and tourism.

Dominica’s national bank requires that individuals be employed for a continuous one-year period with their current employer in order to qualify for a personal loan. For people who depended on tourism and agriculture to survive, meeting this requirement is a high bar. The hurricane ripped plant life out of the ground, damaging crops. The tourism industry experienced hard times as well, with all tourism halted for months.

Corporations have recognized the high level of need for credit access in Dominica and have done their part to allow borrowed goods and services. Flow, a subsidiary of Cable & Wireless Communications, began operations to restore mobile services to Dominica in good faith, even extending free credit to help mobile customers communicate with friends and family.

Ensuring credit access in Dominica is beneficial to the companies that provide it. Dominica’s economy as a whole was on the rise in early 2017, with a decrease in government debt and an increase in tourism. Negative growth in Dominica was estimated at 6.4 percent due to Maria, but the island’s economy is expected to rebound, with an estimated 6.9 percent growth in 2018 as it rebuilds.

Credit access in Dominica comes in the form of both individual and national needs. Over 400 higher-ups from governments, civil society organizations and the private sector mobilized to support reconstruction efforts following Maria. Support for Dominica totaled over $1.3 billion in pledges and over $1 billion in loans and debt relief.

Despite the setback from the hurricanes, Dominica’s economy is still expected to trend upward, which bodes well for those supplying lines of credit. The Eastern Caribbean Currency Union (ECCU) is one such company supplying financial aid to the people of Dominica.

The ECCU recorded slow growth in the country’s economy, and Dominica’s Prime Minister Roosevelt Skerrit noted that the potential capital of banks in the ECCU has improved since non-performing loans are trending upward as a consequence of recent hurricanes.

Dominica has a long history of bouncing back from natural disasters. Credit access in Dominica ensures that the nation becomes stronger and more resilient, as well as offering an immense opportunity for those providing capital.

– Sam Bramlett

Photo: Flickr

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Togo Charity Works to Help Rural Villages Out of Poverty

Togo Charity Works to Help Rural Villages Out of PovertyTogo has struggled to lift its citizens, especially those in rural areas, out of poverty and to ensure adequate access to necessities such as sanitation and drinking water.

A report by the International Monetary Fund found that in 2011, the percent of the rural population that lived below the poverty line was 73.4 percent. In urban areas, the rate was 44.7 percent.

Water Sanitation and Access to Clean Water

Specifically in regards to water sanitation and drinking water, work has been done by various organizations to improve access to these necessities, and as a result, help rural villages out of poverty.

The Water Governance Facility (WGF), backed by the United Nations Development Programme (UNDP), stated on its website that in 2015, 63 percent of Togo’s urban population had access to drinkable water, while in rural areas only 44 percent had access. The same report found that only 11 percent of Togo’s population benefited from water sanitation facilities.

These statistics were reported as part of a larger program called Governance, Advocacy and Leadership in Water, Sanitation and Hygiene that was implemented by the WGF in conjunction with the UNDP from 2014 to 2017.

The Power of Local Aid Groups

However, assistance has also come from organizations closer to home, which strive to help rural villages out of poverty and address its accompanying effects.

Recently, the Togo charity Christian Charity for People in Distress (CCPD) was awarded the Kyoto World Water Grand Prize for the work it has done to help a village of 290 people improve its water sanitation.

CCPD is based in Kpalimé, Togo and was created in April 2004 as a nonprofit Christian charity. The organization’s mission statement declares that its goal is to help rural villages out of poverty by further developing water access, sanitation and hygiene, as well as improving agricultural development, the environment and education.

On its website, CCPD lists four main objectives it seeks to accomplish through its charity work:

  • Protecting the rights of women and children.
  • Assisting the rural population of Togo in obtaining decent education and healthcare, and providing access to drinking water and sanitation.
  • Helping to economically develop rural areas by working alongside farmers to generate more income.
  • Facilitating food self-sufficiency in rural areas of Togo.

Making a Difference

Since 2006, CCPD’s water, sanitation and hygiene programs have aided more than 6,000 people. These programs usually involve the construction of wells, latrines and ECOSAN toilets, which is a waterless toilet designed to save water in countries that do not have water security. In addition, CCPD has worked to help rural villages out of poverty by providing school supplies to primary and secondary school students, aided in the construction of new schools and improved computer skills in adults and children.

The charity is the second African organization to win the Kyoto World Water Grand Prize, which will not only improve sanitation and water conditions, but will also decrease deaths related to illnesses such as cholera that are caused by poor sanitation.

CCPD has been aiding impoverished, rural areas of Togo since its creation, and does far more than just water and sanitation work. The charity’s efforts in regards to education, agricultural development, business development and environmental protection have all impacted communities in Togo and given them the help they need to transition out of poverty.

– Jennifer Jones

Increasing Microfinance Improving Credit Access in Serbia

Credit Access in SerbiaThe Balkan nation of Serbia suffers from many of the same problems with credit access as its neighbors. And as with its neighbors, these problems pose a significant obstacle to small-scale, grassroots economic development. That being said, there are several initiatives underway to help to improve credit access in Serbia until the Serbian financial industry is able to offer expanded opportunities to secure credit.

In the wake of the 2008 financial crisis, Serbian banks have set very rigid requirements in order to secure a line of credit. Interest rates tend to be prohibitively high for small business owners, and there are many regulations in place that discourage lending to small businesses and startups because they are perceived to be too risky. The government has introduced subsidies and risk-sharing programs to try to mitigate this problem at great cost to the state, but this has not been sufficient to really improve credit access in Serbia. It is estimated that small and medium-sized enterprises in Serbia are collectively in need of €267 million worth of financing that Serbian banks are not willing to lend.

This is not to say that the Serbian financial industry is underdeveloped or ill-equipped. The World Bank is quite satisfied with the state of credit access in Serbia at a broad level. However, it does acknowledge that small and medium-sized enterprises experience more difficulty than they should when trying to access credit.

There have been several positive developments over the past several years that bode well for the future of credit access in Serbia. Recently, banks have begun to change the risk assessment procedures that they use when dealing with small and medium-sized enterprises. Where previously these entities were assessed in the same manner as a large corporation would be, many banks now use a procedure that takes into account the comparatively small size of these enterprises and does not allow size or inexperience to negatively impact the applicant.

Additionally, many international entities have stepped in to extend additional microfinancing money to be used to improve credit access in Serbia. The European Investment Bank recently provided €30 million to ProCredit Holdings in Serbia. This is intended to promote long-term, stable credit access in Serbia that will encourage economic growth and development for years to come.

While credit access in Serbia remains less than ideal, these recent developments represent major improvements over the previous situation. If similar improvements continue to follow, it can be expected that improved credit access will precipitate much greater economic development in Serbia in the coming years.

– Michaela Downey

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