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Archive for category: Global Poverty

Key articles and information on global poverty.

Global Poverty

Peace Initiative in Samoa: The Peace Road Embraces Taufusi Market

Peace Initiative in SamoaFamily Federation founder Sun Myung Moon envisioned a “Peace Road,” an international highway that physically connects people across the world. Roads unite people in trade, culture and travel. Moon believed that uniting people in daily life would extinguish historical fears and misunderstandings that divide the world. Moon suggested the construction of a highway between Korea and Japan, two former enemy countries, in 1981. Beginning in 2005, he advocated for a “Peace Tunnel” across the Bering Strait.

Samoa did its part to carry out Moon’s vision by implementing the Peace Road initiative across the country in August 2015. Moon’s vision focused on the physical connection between cultures; this peace initiative in Samoa can bridge cultural gaps and promote peace throughout the region. Samoa’s 2015 and 2016 Peace Road initiatives focused on Savai’i churches and schools in Salelologa, Sapapali’i, Sili and Puleia.

The Peace Road’s 2015 implementation revolved around several themes:

  • Uniting mind and body
  • Connecting the youth with the elderly
  • Bridging the gap between traditions and new customs
  • Reviving old customs to educate the youth

Samoa’s 2017 Peace Road initiative centered on Taufusi Market. Universal Peace Federation Samoa adopted Taufusi Market’s road as their designated “Peace Road” in November 2017. Taufusi Market’s stalls were adorned with colorful banners, drapes and flags.

The Peace Road programs of 2017 included:

  • The launch of Youth and Students for Peace at the High Tech Youth Network locations in Vaivase and Avele
  • The re-launching of the Women’s Federation for World Peace with a sewing project

Although officially completed in November 2017, Samoa’s Peace Road initiative extended to the January 16 inauguration of the International Association of Parliamentarians for Peace. The addition of the Peace Road to infrastructure in Samoa actualizes the global peace initiative proposed by Moon.

Although it is a new peace initiative in Samoa, the Peace Road in Taufusi Market promotes cultural education and empathy. It continues the global peace initiative undertaken over 35 years ago. Samoa has joined 120 other countries in supporting the annual Peace Road; nearly 62 percent of the world actively supports and promotes world peace.

– Carolyn Gibson

Photo: Flickr

March 1, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-01 01:03:012024-05-29 22:39:33Peace Initiative in Samoa: The Peace Road Embraces Taufusi Market
Global Poverty

Sustainable Agriculture in Guinea-Bissau Increasing Production

Sustainable Agriculture in Guinea-Bissau
Guinea-Bissau, a former colony disputed by Portugal, France and Great Britain, is located on the west coast of Africa. The country is bordered by Senegal and The Gambia and is a mostly low-lying country. Its economy relies largely on agriculture, yet much of the land remains uncultivated due to unsustainable practices and unstable political conditions. Because of this, sustainable agriculture in Guinea-Bissau is more vital than ever.

Background and Past Issues

The economy of Guinea-Bissau is mostly agricultural but also includes forestry and fishing. Guinea-Bissau produces its own food, and farming is largely based on local subsistence. Some of the most common crops grown in the country are rice, vegetables, beans, cassava, peanuts, potatoes and palm oil. They also raise livestock and catch fish and shrimp, which are used locally as well as exported.

Due to the vast subsistence farming and importing, crop failure and rising prices can be devastating to the population. Guinea-Bissau was hit hard by the global food crisis in 2008 when they could not afford international prices and lacked the resources to keep up with food production. The country has also been affected by the practice of slash-and-burn agriculture, which causes soil fertility to decline. Lastly, a lack of resources has allowed much of the fertile land in Guinea-Bissau to go uncultivated.

Finding Solutions

Sustainable agriculture in Guinea-Bissau has become vital to solving these problems. In a direct response to the crisis in 2008, the revitalization of agriculture and specifically rice production became priorities. Several regions within the country have suitable land for rice production, yet these lands were uncultivated and caused citizens within these regions to fall into poverty, as they are isolated from other areas of food production.

With new sustainable practices, rice production has now doubled in these areas. The European Union has also created a financing program to rehabilitate 300 kilometers of road in the area, allowing for a more efficient transport of goods. More sustainable practices and projects like these are also vital to combating climate change, a problem the country has been facing the effects of for years.

Future Projects

Guinea-Bissau has also turned to cashew nuts to enhance production. In 2013, cashew nuts accounted for 87.7 percent of the country’s total exports. The industry has been increasing since the late 1990s, and now 85 percent of people living in rural areas depend on these orchards in some way for their livelihoods. This has allowed for great economic improvement, yet the lack of biodiversity involved with this monocultural practice leaves citizens extremely vulnerable. If crops failed or were struck by disease, hundreds of thousands of citizens would be negatively affected.

The most important feature of sustainable agriculture in Guinea-Bissau is now education. Non-governmental organizations like Agrisud International are working with people within the country to promote and teach more sustainable practices. They have also been working with the country’s government to make these practices public policy. With the continued support of international organizations and the government, Guinea-Bissau’s agricultural practices will only continue to improve.

– Megan Burtis

Photo: Flickr

February 28, 2018
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Global Poverty

Treating HIV in Saint Petersburg Showing Positive Results

Treating HIV in Saint PetersburgIf Saint Petersburg were the same today as it was ten years ago, it would be known as one of the top five cities in the Russian Federation affected by the HIV virus. However, it is now the fourteenth most affected city. Treating HIV has been a top priority for the city, and as a result it has been able to get the epidemic under control. Saint Petersburg is the first city in the Russian Federation to achieve a steady decline in HIV infections, and fewer people are becoming infected with the virus throughout the city.

Last year, about 1,750 people were newly diagnosed with HIV in Saint Petersburg alone, a number that was even higher in the years before. In total, 42,000 people in the city were living with HIV. The city was able to get 80 percent of the people affected access to services at the Center for AIDS Prevention and Control.

The Center for AIDS Prevention and Control provides antiretroviral therapy (medicine that directly treats HIV), useful information and specialized medical care as well as prevention medicines for both pre-exposure and post-exposure.

Affected citizens in Saint Petersburg can also visit the city AIDS center, where they are able to get new syringes, sterile equipment and other preventative tools such as condoms. Saint Petersburg has also partnered with community organizations that have contributed to treating HIV by testing women for HIV, giving out free condoms and talking to consultants. Unfortunately, Saint Petersburg is one of the only cities in the Russian Federation that provides affected citizens with such a wide range of prevention and treatment.

An important factor in reducing the number of people affected by HIV was the availability of quick HIV testing. That way, someone who is affected can know immediately to begin taking antiretroviral therapy to both treat the disease and prevent any new infections.

The government has been supporting an outdoor advertising campaign teaching residents about HIV prevention services and public service announcements. The advertising has three main messages regarding HIV: the importance of testing, the availability of treatment and the elimination of stigma and discrimination against people with HIV.

Saint Petersburg is a good example of a city that was greatly affected by the HIV epidemic, but through a variety of preventative and treatment measures was able to take control of the epidemic and achieve a drastic shift in the number of people diagnosed.

– Chloe Turner

Photo: Flickr

February 28, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-28 01:30:302024-05-29 22:39:34Treating HIV in Saint Petersburg Showing Positive Results
Global Poverty, Nonprofit Organizations and NGOs, Women's Empowerment

5 Nonprofits Helping Women and Girls in Nigeria

5 Nonprofits Helping Women and Girls in Nigeria

Traditional religious and cultural beliefs have hindered the growth and development of women and girls in Nigeria. Often faced with opposition, this particular demographic does not have any support. As the economy of Nigeria continues to worsen, many programs that aid women and girls are likely to be cut. However, most remain strong and continue to provide assistance to Nigerian females through various institutions. These are five nonprofits helping women and girls in Nigeria.

Kudirat Initiative for Democracy

Based in Lagos, Nigeria, Kudirat Initiative for Democracy (KIND) works on projects focused on eliminating barriers for women’s public participation in social, economic and political development and ending violence against women.

KIND is just one of the many nonprofits helping women and girls in Nigeria by providing them with the information and skills needed to take part as service leaders at all levels of society.

One of KIND’s leadership programs, Kudra, is offered at higher institutions of learning in Nigeria. This program works with young women at universities, supplying them with leadership tools and life-building skills. These young women are encouraged to engage in changing their communities through community engagement, building businesses and mentoring others, thereby boosting the development of a generation of women leaders in Nigeria.

Wellbeing Foundation Africa

The Wellbeing Foundation Africa is a maternal, newborn and child health group in Africa, noted for being one of the first established nonprofits in Nigeria and the backbone of the larger Wellbeing Group.

Through strategic collaboration with preeminent global providers of maternal and child health products, with the hopes of sealing the cracks in health infrastructure, Wellbeing Universal Health organizes the expedition and accessibility of life-saving supplies to expectant and new mothers in Africa.

Working to Advance Science and Technology Education for African Women (WAAW Foundation)

Founded in 2007, WAAW Foundation is an international organization that works to enhance the pipeline of African women entering the science and technology workforce.

WAAW Foundation’s STEM strategy underlines how the use of computer science, technology and programming can be used to solve the energy and clean water crisis occurring in Africa through the use of an integrated inquiry-based learning experience.

They are able to give girls an opportunity to seek STEM training while also introducing them to technologies that use available resources to solve massive issues in their own local communities.

Women in Management, Business and Public Service (WIMBIZ)

WIMBIZ is a Nigerian nonprofit created by individuals who recognized a major issue of few women in leadership roles in workplaces and businesses.

This organization helps women manage the many conflicts they face in the workplace by motivating them to achieve their potential and be meaningful contributors to economic development. Its goal is to increase the success rate of women entrepreneurs and progressing the number of women in senior levels at corporations and empowering women to secure leadership positions in management, businesses and public service positions.

Stand to End Rape Initiative

Stand to End Rape Initiative is a youth-led nonprofit organization advocating against sexual assault by offering prevention methods and psychological services for survivors. They advocate for rape survivors who find it difficult to speak out because of social stigma and also utilize varying platforms to teach the communities sexual violence and abuse.

With these five nonprofits helping women and girls in Nigeria, the opportunity for other organizations to contribute their resources toward addressing social problems will hopefully alleviate societal issues within this specific demographic.  

– Zainab Adebayo

Photo: Flickr

February 28, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-28 01:30:252024-05-29 22:39:325 Nonprofits Helping Women and Girls in Nigeria
Education, Global Poverty, Health

The Worst Consequences of Poverty

worst consequences of poverty

The causes and effects of poverty are often deeply interrelated. However, some consequences of poverty are so troubling that they stand out and need to be studied individually. Focusing on some of the worst consequences of poverty can unravel the causes of poverty and provide insight into how to eradicate poverty.

Some of the worst consequences of poverty include:

Increased Crime

At first glance, it might be easy to conclude that crime is a cause of poverty and not the other way around. However, poverty can render people hopeless and desperate enough to engage in criminal activities. For instance, a study done by the Edinburgh Study of Youth Transitions and Crime found that, even after controlling for the effects of a range of other factors such as substance misuse and poor family functioning that can influence violent behavior, “poverty had a significant and direct effect on young people’s likelihood to engage in violence at age 15.” Individuals growing up in communities with high levels of deprivation were significantly more likely to engage in violent activities.

Notably, this study found that those from low socioeconomic backgrounds had a greater likelihood of engaging in violence even if they also belonged to a “low risk” background.

Limited Access to Education

Poor children typically attend schools with inadequate facilities and receive the kind of education that hardly provides them with the tools to further their studies or seek employment, thereby restricting them and their children to poverty, which becomes a vicious cycle of poverty across generations. Additionally, geography can dictate if they even get to attend school. For instance, while a poor child in the U.S. can still attend school, a poor child in a rural area of Bangladesh might not have that opportunity. Distance, lack of transportation and financial resources often make it very difficult for poor children in developing nations to get an education.

There are stark differences between children from poor and wealthy backgrounds even in first world countries. For instance, a study done in the U.K. found that by the age of three, poorer children are estimated to be, on average, nine months behind children from wealthy households.

Health Issues

Health is perhaps the one area where poor people suffer the most. For instance, a disproportionately large percentage of diseases in low-income countries are caused by the consequences of poverty such as poor nutrition, indoor air pollution and lack of access to proper sanitation and health education. According to World Health Organization estimates, poverty-related diseases account for 45 percent of the disease burden in the poorest countries. Nearly all of these deaths are either preventable or treatable with existing medicines. For example, tuberculosis, malaria and HIV/AIDS make up nearly 18 percent of the disease burden in the poorest nations. Tuberculosis and malaria can both be prevented and treated, and education is crucial for the prevention of HIV/AIDS.

Extremism

A recent study done by the United Nations Development Programme found that deprivation and marginalization along with weak governance contribute to violent extremism in young Africans. The study was based on interviews with 495 voluntary recruits to extremist organizations such as Boko Haram and Al-Shabaab and suggests that few economic prospects and little trust in the state to provide services and uphold human rights can lead an individual to partake in violent extremism. The conclusion was derived from the fact that most of the recruits reportedly came from marginalized communities, expressed frustration regarding their economic conditions, and felt an “acute sense of grievance towards the government.”

These are some of the worst consequences of poverty. These effects of poverty prove that, in order to achieve peace and safety in the world, poverty alleviation must be a focus.

– Mehruba Chowdhury

Photo: Pixabay

February 28, 2018
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Global Poverty

Top 5 Facts about Living Conditions in Swaziland

Top 10 Facts about Living Conditions in Swaziland

Swaziland has endeavored to increase employment and economic growth. Among these efforts, still more work needs to further these goals and priorities. One area that the country has made progress in is improving living conditions in Swaziland by reducing the number of people living below the poverty line. With continued effort, Swaziland can make positive steps in strengthening its healthcare system, increasing employment rates and economic growth and increasing the retention rate of girls in school. These top 5 facts about living conditions in Swaziland will show where they are succeeding and where they need more work.

Top 5 Facts about Living Conditions in Swaziland

  1. In Swaziland, unemployment rates, in general, have not changed much in the past few years, hovering around 26 percent. There are further discrepancies between unemployment rates for women. For example, in 2007 and 2010, the rates stayed level around 30 percent. For men, however, the rates between 2007 and 2010 were 24.0 percent and 22.7 percent. There is still more work to be done in increasing youth employment. In fact, Swaziland has one of the highest youth unemployment rates in Africa. The unemployment rate has remained higher than 50 percent since 2007. Specifically, working to reduce youth unemployment is a major part in helping reducing unemployment as a whole. Solutions to decrease youth unemployment are tertiary reforms and increasing vocational and on-the-job training. In addition, adding more growth to the private sector is key to helping to create high paying and productive jobs. Companies like Orange and OpenClassrooms are working to provide digital education to Africa’s youth to help young people find jobs in the tech markets.
  2. There has been some progress made in the living conditions in Swaziland by reducing the number of people living below the poverty line. According to the Swaziland Household Income and Expenditure Survey, the percentage of people living below the poverty line was 69 percent in 2001. However, the percentage had dropped by more than half to 30 percent in 2015. These numbers represent, on average, 20 percent for those living in urban areas, but for those living in rural areas, it was as high as 37 percent. Reasons for such high poverty rates were the decrease in incomes, the stagnation of private consumption and the decrease in the GDP.
  3. As a whole, economic growth has declined in Swaziland. Real GDP growth decreased from 1.3 percent in 2016 to 1 percent in 2017. Economic growth was projected to be at 1.5 percent in 2018. Factors that have contributed to the decline in economic growth are low demand from pivotal export market destinations, especially from South Africa and Eurozone. In addition, the sector also experienced a decline in economic growth and a loss of eligibility in status to trade under the African Growth and Opportunity Act Arrangement. Swaziland’s average GDP annual growth rate had been its highest in 1990 at 21 percent, but it dropped significantly down to .7 percent in 2016. Fortunately, the GDP annual growth rate had risen up to 2.3 percent in 2017.
  4. The healthcare system consists of formal and informal sectors. Health practitioners and general service providers make up the informal sector while industry, private and public health services as well as nongovernmental organizations make up the formal sector. Swaziland puts around 3.8 percent of its GDP towards healthcare, the government providing 65 percent of the money, which is about 2 percent of its GDP. The federal budget was increased from 7 percent in 1998 to 9 percent in 2009.
  5. There still is more work to be done in closing the gender gap in education. Swaziland’s educational levels are primary education, secondary education, vocational education and tertiary education. Although there is not a great disparity between boy and girls attending primary, dropout rates do tend to rise by year 5 of secondary school. More work needs to be done in increasing the retention rates for both girls and boys in school, although more work is needed for female retention. While there are not as many obstacles for girls starting school, there are numerous obstacles that hinder girls from staying in school. Between the ages of 15 and 19, 50 percent of girls will not have completed secondary school, compared to 39 percent of boys. Some of the obstacles are poverty, the HIV/AIDS pandemic and gender insensitivity. Furthermore, more than two-thirds of families live in poverty, and many find difficulties in paying for school fees and other costs.

These 5 facts about living conditions in Swaziland show that, while there is more work to be done in areas of employment, economic, growth and education, there has been notable progress in helping to improve the living conditions of the people. One area that has seen progress is the reduction of the number of those living below the poverty line. With more effort, Swaziland can see positive developments in helping the lives of all people.

– Daniel McAndrew-Greiner

Photo: Flickr

February 28, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2018-02-28 01:30:212024-05-29 22:58:05Top 5 Facts about Living Conditions in Swaziland
Food & Hunger, Food Security, Global Poverty, Hunger

Fighting World Hunger Through the Hunger Project

Fighting World Hunger Through the Hunger Project

Hunger affects more than 700 million people in the world. About one in nine people on this planet do not have the proper amount of food to sustain a healthy lifestyle. The majority of people suffering from starvation live in developing countries in Africa and parts of Asia.

Hunger also has a significant adverse impact on children. Poor nutrition causes about 45 percent of deaths in children under five. This amounts to approximately 3.1 million children each year. Sixty-six million young children attend school hungry, and 22 million of those children are from Africa. In developing countries, one out of three children are stunted, and at least 100 million of these children are underweight.

Malnutrition and world hunger are significant factors in poverty, but organizations such as the Hunger Project work to combat these factors.

 

What is the Hunger Project?

The Hunger Project was established in 1977, and its primary goal is to help everyone live a fulfilling and healthy life by ending world hunger.

The organization’s focus is world hunger, and it has pinpointed other variables that contribute to achieving its ultimate goal. Simultaneously, it works to enhance human dignity, gender equality, empowerment, interconnectedness, sustainability, social transformation and transformative leadership.

The Hunger Project faces each challenge with three approaches. Firstly, it works to empower women, because they are essential to decreasing world hunger. It then focuses on making dependent communities self-reliant through mobilization. Finally, it works to improve local governments through partnerships.

 

The Hunger Project Improving Ghana and Burkina Faso

Recently, the Hunger Project partnered with the Economic Community of West African States to work on projects in Ghana and Burkina Faso. Together, they will finance these projects to improve leadership in communities. With better guidance, the organizations hope that it will lead to people being able to obtain their basic daily needs.

Another goal of these projects is to teach communities how to create boreholes during harvest. Boreholes are holes that are drilled into a surface to extract vital material. Boreholes are useful for drilling for water, as well as oil and mineral extraction.

Finally, as part of the series of projects, the organizations will work to equip Ghana and Burkina Faso with more modern tools and skills.

 

The Hunger Project’s Maternal Care

Ghana’s maternal healthcare system is in dire need of improvement. As of 2010, 164 out of 100,000 births resulted in death. The Hunger Project is working to make a difference by partnering with the Ghana Health Service to teach women how to become midwives.

Ghana is suffering from a shortage of midwives, which can lead to complications during childbirth, especially when a trained attendant is not present. The organization strives to place trained midwives across 15 districts in Ghana. These midwives will offer 24-hour maternal care, especially in the regions that have a shortage.

Hunger is crippling a significant number of people in the world, but with organizations such as the Hunger Project working to address the causes, improvements are sure to come shortly.

– Cassidy Dyce

Photo: Flickr

February 28, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-28 01:30:052024-05-29 22:39:36Fighting World Hunger Through the Hunger Project
Global Poverty

Successful Efforts to Improve Credit Access for SMEs in Mongolia

credit access in Mongolia

In 2016, 43 percent of Mongolia’s herders owned less than 200 animals, limiting their ability to access credit from lenders. Without credit access, these herders face challenges to produce hay for the winter, build animal shelters and move their herds long distances to reach sufficient pastures. However, efforts are being made to improve credit access in Mongolia.

 

USAID’s Reach Project

In June of 2016, the U.S. Agency for International Development (USAID) and Development Solutions NGO launched the Reach Project to support Mongolia’s small and medium-sized enterprises (SMEs). The Reach Project’s main goal is to improve and scale access to credit for Mongolia’s SMEs by helping them find appropriate financial products for their needs and to qualify for loans. The U.S. government expects the two-year project to improve Mongolia’s economy.

“SMEs make up 20 percent of Mongolia’s GDP, but they don’t have efficient financial resources,” said Mongolia’s U.S. Ambassador Jennifer Galt. Additionally, 75 percent of Mongolia’s SMEs would need more collateral assets in order to take out loans. “We will provide real support to small business through the Reach Project to meet their demand,” Ambassador Galt said.

The Reach Project takes place in Mongolia’s Dundgovi, Selenge, Bayan-Ulgii and Dornod provinces. The Reach Project also partnered with the government of Mongolia’s Credit Guarantee Fund. The fund can provide credit guarantees of up to 60 percent of individual loan amounts to Mongolia’s SMEs.

 

Positive Effects of Mongolia’s Rising Credit Access

On June 28, 2016, an executive summary from Mongolia’s retail sector revealed that the country’s improved credit access facilitated a further rise in disposable income. Mongolia’s banking sector has expanded rapidly in the past few years and there is now a multitude of non-bank financial institutions and credit cooperatives. Improved credit access in Mongolia has dramatically boosted the average Mongolian’s spending power as well.

Mongolia’s central bank also implemented a successful price control program that brought inflation to 2.6 percent in 2013, 6 percent in 2014 and 5.8 percent in 2015. Mongolia’s price stability could have a positive effect on consumer spending and should similarly affect demand for high-quality retail space. Rising credit access in Mongolia has led to increased sales for the country’s retailers and has motivated international brands to open stores in Ulaanbaatar.

 

Web-Based Collateral Registry

In February 2017, the International Finance Corporation (IFC), in conjunction with the Ministry of Justice and Internal Affairs, launched a web-based collateral registry for Mongolia. The registry was part of a joint initiative to reform Mongolia’s secured transactions and improve the country’s financial access for SMEs. This reform would take place by facilitating lending against Mongolia’s movable assets as collateral.

Improving Mongolians’ credit access will also be a key factor in the collateral registry. The registry will enable creditors to search for Mongolia’s existing interests on movable assets and file security interest on the collaterals they approve. “Mobilizing movable collateral to boost access to finance, especially for MSMEs, can play a significant role in Mongolia’s sustainable economic recovery and job creation,” said Tuyen Nguyen, IFC’s representative in Mongolia.

 

Looking Forward

USAID’s programs will continue to focus on increased credit access for Mongolia’s SMEs. USAID is also collaborating with Mongolia’s government to strengthen the capacity of SMEs by helping them adopt accounting practices, gain financial access and develop business plans. In December 2017, USAID also announced plans to strengthen the financial literacy of Mongolia’s SMEs and help them access loans worth $25 million.

While more Mongolians have gained credit access, there is still much work to be done. On Feb. 5, 2018, the Heritage Foundation revealed that Mongolia’s economic freedom ranked 125th worldwide. Improving credit access in Mongolia will continue to be a priority for many entities and possibly attract more efforts to decrease the country’s financial dilemmas.

– Rhondjé Singh Tanwar

Photo: Flickr

February 27, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-27 19:30:542024-12-13 17:58:37Successful Efforts to Improve Credit Access for SMEs in Mongolia
Global Poverty

Consumer Credit Access in Panama Continues to Expand

Consumer Credit Access in Panama Continues to Expand

Reports from 2014 highlighted good news in the Panamanian economy. Continued years of growth particularly helped the credit sector, and lending was increasing at rates of more than 10 percent per year. This was a healthy rate in comparison with similar rates of overall economic growth in the country. Consumer lending was not left behind during this boom, and household credit access in Panama increased at rates nearly on par with general growth.

This increase in credit access in Panama was great news for its developing domestic economy. Panama’s strategic location and the canal linking some of the world’s most-traveled shipping lanes have made it a center of commerce since the early 20th century. However, despite countless international commercial links, many of Panama’s people did not see the benefits of strong development until a century after the opening of the canal. A new government measure of poverty released in 2017 showed that nearly a fifth of the population was living in significant poverty.

The strong growth reported in 2014 was followed by further increases in small household lending in Panama as microfinance products began to increase their offerings in Panama. In 2017, the government of Panama revised a large number of regulations to assist microfinance and its effects in reducing poverty in the country. This was joined by the creation of REDPAMIF, a nongovernmental microfinance network, to assist lenders in creating a fertile environment for the success of expanding credit operations.

Small consumer lenders in Panama are following the pattern of successful development and small lending projects worldwide in diversifying their offerings. From the same 2017 report, 40 percent of the microlending portfolio in Panama is in loans to women. Similarly, in a highly urban country (nearly three out of four Panamanians live in the metropolitan area of Panama City), 13 percent of their loans are disbursed to rural borrowers.

Panama’s economy has continued to improve rapidly. An investment to expand the canal, which opened to new and larger shipping vessels in June 2016, has paid off in rates of growth that are outpacing most of the rest of the world. With good management and continued success in innovative development trends, credit access in Panama and the country’s poverty rate should continue to improve in the coming years as well.

– Paul Robertson

Photo: Flickr

February 27, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-02-27 07:30:432024-06-04 01:03:15Consumer Credit Access in Panama Continues to Expand
Aid, Global Poverty, Humanitarian Aid

The Success Story of Humanitarian Aid to Cabo Verde

humanitarian aid to Cabo Verde

Around 500 kilometers off the west coast of Africa lies the former Portuguese colony of Cabo Verde, a volcanic archipelago republic made up of ten islands and five islets in the central Atlantic Ocean. The country not only lacks in natural resources but also possesses a tiny portion of arable land and is prone to drought.

Despite these prevalent difficulties, Cabo Verde won an international reputation for maintaining economic and political stability, due largely in part to the humanitarian aid sent to the country.

 

Cabo Verde

Cabo Verde is a stable multi-party parliamentary democracy with a high trade deficit, most of which is offset by foreign aid and economic remittances sent by emigrants back to the country. The U.S. State Department praises the country as a “model of democratic governance,” noting the country’s high literacy rates and high per capita income among “the best development indicators of any country in the region.”

Cabo Verde received the notable distinction of becoming the first African state to complete its first Millennium Challenge Corporation (MCC) Compact in late 2010. The MCC is an independent foreign aid agency established by Congress that works with partner countries around the world to alleviate global poverty.

 

Compact Stipulations

Following this successful $110 million MCC initiative that strengthened the country’s infrastructure and boosted agricultural production, the Cabo Verde government signed a five-year compact in 2012 to institute further water, sanitation and land management reforms. This second compact builds upon the first to establish transparency and accountability to achieve actionable results.

Last year, the government celebrated the end of its second compact and became the first one in the world to benefit from such a remarkable success of humanitarian aid to Cabo Verde.

“We are proud of the partnership between MCC and Cabo Verde that has built a solid foundation aimed at reducing poverty and improving the lives of individuals, families, and communities across the country,” MCC Vice President Robert Blau said at a closeout ceremony held on November 30, 2017. “We are also heartened by the Government of Cabo Verde’s commitment to continuing these programs and reforms in order to guarantee sustainability of the investments.”

Essentiality of Humanitarian Aid

The success of humanitarian aid to Cabo Verde is possible thanks to the united efforts of numerous countries and international aid organizations across the globe. The Cabo Verde government has also managed and administered the aid funds responsibly, entrusting state-owned companies and religious institutions with the implementation of developmental projects.

 

The United Nations

The United Nations (U.N.) has actively worked within the country through many conventions and projects. For instance, in early December, the U.N. held a seminar on social security, economic growth and development in the country. A month earlier, the United Nations Population Fund (UNFPA) worked with the National Directorate of Health and National Sexual Health Program to develop a national strategic plan for improving sexual and reproductive health in the country.

Specialized programs and agencies of the United Nations, such as the United Nations Educational, Scientific and Cultural Organization (UNESCO), the World Health Organization and the United Nations Children’s Fund (UNICEF), have also advised the government on the best ways to make efficient use of humanitarian aid to Cabo Verde.

 

The Success Story

The African Development Bank has highlighted the success story of humanitarian aid to Cabo Verde in a detailed research project report, affirming that the very small island economy has “managed to defy the odds and transform itself from an extremely poor country into one of the better performing economies in Africa in just over two decades,” and thus managed to overcome “severe geographic, economic, and social challenges to become an African success story.”

– Mohammed Khalid

Photo: Flickr

February 27, 2018
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