Archive for category: Global Poverty

Key articles and information on global poverty.

The Future of Infrastructure in Honduras Looks Bright

infrastructure in HondurasHonduras is the only country in its region to be self-sufficient in energy. Infrastructure in Honduras has shifted from oil import dependency to self-created hydroelectric power.

The El Cajón Dam and Rio Lindo/Yojoa system established Honduras’ hydroelectric potential with a total energy output of 577 megawatts (MW). One MW hour can power about 650 residential homes. El Cajón produces 292 MW, enough energy to power 189,000 residential homes.

The El Cajón hydroelectric dam, also referred to as a hydroelectric plant, is located on the Humuya River in central Honduras. The dam’s primary function is electric energy production, but it further controls flood waters and ensures regular irrigation throughout the year.

El Cajón embodies physical infrastructure in Honduras, but the country has also taken action to improve laws related to renewable energy and power supply. Honduras approved its new Law of Electrical Industry in 2014. This law replaces the previous Electricity Subsector Framework Law and outlines the legal framework for the electricity sector.

The Law of Electrical Industry establishes:

  • Conditions for contracting new energy capacity
  • Minimum quotas for renewable energy set by the government
  • Technology-specific auctions for renewable energy
  • Purchase Power Agreements (PPAs) for hydropower facilities that last up to 30 years

A PPA is an agreement between a renewable energy provider and a consumer in order to reduce the total energy bill. The provider arranges the design, permitting, financing and installation of a system on the consumer’s property at little cost. Although the consumer does not own the system, PPAs make renewable energy affordable.

The percentage of Hondurans with access to electricity has significantly increased over the past 24 years, jumping from 55 percent to 88 percent of its nine million residents. Although electricity has become more accessible, nearly 60 percent of the population remains below the poverty threshold.

Infrastructure in Honduras has taken a step forward in its self-sufficient energy production, but the demand for electricity has surpassed initial projections. PPAs may further the country’s progress by offering affordable energy to the 5.57 million Hondurans living in poverty.

– Carolyn Gibson

Photo: Flickr

Ongoing Reform with Five Development Projects in Chad

development projects in Chad

Development projects in Chad range from economics to livestock, but all focus on the country’s stabilization in a war-torn region. Chad borders the Central African Republic, which has undergone a series of military coups and remains a volatile region with escalating attacks on civilians. Chad has worked to bolster itself against the effects of its neighbor’s instability. The following five development projects in Chad emphasize the country’s consistent objective of reform.

Chad and Cameroon Development Project
Exxon Mobil’s project includes oilfields in southern Chad and a pipeline to transport oil to a marine terminal in Cameroon. This project’s contributions include:

  • Construction of schools and water wells
  • Employment training and jobs
  • Malaria prevention and treatment programs
  • Purchase of local goods and services

The Chad and Cameroon Development project is ongoing.

Education Sector Reform Project Phase-2 Additional Financing
The Education Sector Reform Project aims to improve teaching and learning conditions in designated primary and upper secondary schools, while also facilitating evidence-based decision-making. Additional financing will fund:

  • Subsidy payments and training for community teachers (CTs)
  • A mobile-based platform for payment of CTs
  • A school-based deworming program for children under 12

The project’s revised closing date is scheduled for October 31, 2020.

Emergency Fiscal Stabilization Development Policy Operation Project
The Chadian government must address financial crises regarding the 2017 budget in the aftermath of terrorist threats, oil price collapse, security costs and humanitarian conflicts. This reform program emphasizes:

  • Immediate fiscal stabilization
  • Expenditure rationalization
  • Support of the government’s response to the fiscal dilemma
  • Resolution of negative social impacts

The project will conclude on December 31, 2017.

Emergency Food and Livestock Crisis Response Project
The Emergency Food and Livestock Crisis Project focuses on increasing food availability and livestock production for those affected by the conflict in the Central African Republic. This project provides:

  • Food security
  • Livestock protection

The project’s closing date has been extended from December 31, 2017 to September 30, 2019.

Statistical Development Project
The Statistical Development Project increases the national statistics institute’s ability to collect and process data with improved quality and efficiency. This project is comprised of three components:

  • Strengthening institutional capacity and developing human resources
  • Improving data collection, processing, analysis and dissemination
  • Refining information technology and project management

The project closes on March 31, 2022.

Multiple development projects in Chad have had their closing dates extended, exemplifying Chad’s commitment to ongoing reform. These and other projects can ensure long-term stability and improvements in quality of life for all Chadians.

– Carolyn Gibson

Photo: Flickr

Improving Credit Access in Mexico

credit access in MexicoAccess to credit and other financial services can lead to profound positive effects on the overall health and welfare of a country, but these services can often be hard to come by in developing nations. This makes it harder for people to start a business or borrow money when an unforeseen circumstance leads to a loss of income.

Mexico is an example of a country that has a lot to gain by increasing credit access among its citizens. Credit access in Mexico has a lot of ground to make up compared to its Latin American neighbors, but it has launched a comprehensive plan to increase credit access to its citizens.

Mexico has been working to improve its economy by increasing credit access to its citizens. A 2016 report by the National Banking and Securities Commission found that Mexico is trailing behind much of Latin America when it comes to credit access, especially among small- and medium-sized enterprises.

The World Bank reported that Mexico’s domestic private-sector credit as a percentage of GDP was 31.1 percent as of July 2016. By comparison, that figure is 109.4 percent in Chile and 69.1 percent in Brazil. Mexico’s banking industry understands the importance of increasing credit access in Mexico and has set the goal of increasing the country’s private-sector credit percentage to 40 percent by 2018.

In order to achieve the goal of increased credit access, Mexico has launched a National Financial Inclusion Strategy (NFIS). The World Bank estimates that this strategy can lead to an additional 29 million Mexican citizens gaining access to a bank account and other financial services. This has the potential to stimulate Mexico’s economy and increase its quality of life.

Mexico’s NFIS seeks to engage private banking, social welfare, public education, telecommunications and other industries in order to provide financial services to the 56 percent of citizens that currently do not have a bank account.

One of the important pillars of this plan is to increase education about financial services and how to use them. This will start with making sure that the subject is taught to children and youth as a part of Mexico’s public school curriculum.

The NFIS also seeks to use new technologies in order to make financial services more readily available. This will include increasing the ways that people can use mobile phones to access financial services and make digital payments.

While credit access in Mexico lags behind much of Latin America, the Mexican government understands that it needs to make improvements in this area. Through the country’s National Financial Inclusion Strategy, Mexico shows that it understands the importance of credit access in helping its citizens, as well as its national economy, thrive.

– Aaron Childree

Photo: Flickr

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Education Flourishes as Infrastructure in Bolivia Improves

infrastructure in BoliviaBolivia is a is one of the most isolated countries in South America and is landlocked, bordering Brazil, Paraguay, Argentina, Chile and Peru. Infrastructure in Bolivia has changed rapidly in recent years as communication has adapted to new technology. This is exemplified by the continued rapid growth of cellular phone use in the country.

Although it is often taken for granted, solid infrastructure makes a large difference, particularly for education. When the needs of the students are met, it can make a world of difference in terms of the quality of education.

Miriam Chipana, a student at Jaime Escalante School located in La Paz, was quoted as saying “it is the best school in the area since we have our own field, a computer room, better bathrooms; everything is bigger and with more light.” Another citizen, Odón Willy Barriento, a father and former student of the Luis Espinal School, agreed with this sentiment, saying “It is a momentous change; 30 years ago, we sat in abode chairs and brought wooden planks to use as writing desks. The new infrastructure encourages students to move forward.”

The improvements to infrastructure in Bolivia have come a long way in improving the quality of education in the country. There have been seven schools with more than 6,000 students in urban areas of La Paz benefiting from infrastructural improvements. Freddy Mamani, the principal at Luis Espinal School, reaffirmed this by saying “enrollment has risen, as has attendance in each class, so we are operating at full capacity.”

Despite the positive outlook for education, infrastructure in Bolivia can still be improved. There have been several steps taken to further improve infrastructure, such as the investment of $3.5 billion in infrastructure in Santa Cruz, Bolivia in 2016. This move was part of President Evo Morales’ drive to make the country’s exports more competitive. With this investment, improvements are planned for highways, airports, railways, housing and telecommunications.

Then there is the Bolivia Urban Infrastructure Project, whose development objective is to improve access to basic services to the urban poor in Bolivia. The project aims to do this through targeted infrastructure investments and the provision of technical assistance to municipalities in the planning, expansion and sustainability of urban service delivery. With these improvements planned for infrastructure in Bolivia, the future is brighter than ever.

– Drew Fox

Photo: Flickr

Improving Infrastructure in Croatia


In 2003 Croatia received help from the World Bank to fix damage due to the war from 1991 to 1995. The Bank has rehabilitated roads, improved health care and implemented a national environmental action plan. Since joining the European Union in 2013, Croatia has followed strict guidelines keeping their country up to standards. Infrastructure in Croatia has been a focus and continues to evolve as the nation expands for locals and visitors alike.

The year 2016 generated many projects for improving infrastructure in Croatia. Reported by N1, almost ten billion kuna for investments in transportation that will be used for construction and reconstruction that will assist the transportation of people and goods. According to the Flanders investment report in April 2016, “Construction and Infrastructure Market in Croatia” better “links” were needed to connect inland parts of the country to coastland. August brought in a shift. Not only was emphasis placed on road safety, but also, “improving accessibility to inhabited islands and connecting the islands with the mainland.”

Durbrovnik – Neretva County and the city of Durbrovnik is an area of importance benefiting from the growing connections. With construction of the Peljesac Bridge and expansion of the Durbrovnik airport this city will be more connected to the rest of the country.

Infrastructure in Croatia is showing great results. From 2015-2016 transportation infrastructure gained high marks according to the World’s Economic Forum survey. At the time air-transport and railroads infrastructure brought in low marks for the country. In 2017 however, finance from the EU Cohesion Fund have been constructing ongoing railway and road construction, improving future scores from the forum.

From help of the EU Cohesion Fund as well as the European Investment Bank Infrastructure in Croatia is building at a steady rate. Known as Croatia’s biggest finance provider, in 2014 and 2015 approximately 1.6 billion euro was given to Croatia to finance various projects. With hopes high and a key player in funding Croatia’s infrastructure is on a great track to bridging natives as well as neighboring Europeans.

– Tara Jackson

Photo: Flickr

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The Success of Humanitarian Aid to Vietnam

humanitarian aid to vietnamA developing country struggles substantially more when hit by natural disasters because of a lack of funding and resources. Vietnam, since 1986, is transitioning from an agrarian economy into a more industrial and market-based society. Because Vietnam is prone to natural disasters the ability for development becomes easily stunted.

The GDP in Vietnam has shown an increase, but in 2016 due to natural disasters, such as Typhoon Damrey, the targeted growth was not met. According to the government of Vietnam, Typhoon Damrey killed 89 people, injured 170 and damaged or destroyed 121,500 houses and homes. This disaster is one of several that disrupted crops, electric grids, and roads while affecting clean water access and sanitation. Humanitarian aid to Vietnam becomes a need to facilitate the recovery and development of the affected areas.

The Government of Vietnam cannot handle the scale of such disasters and aid must come from foreign countries or non-governmental entities. The USAID Office of U.S. Foreign Disaster Assistance (USAID/OFDA) provides aid for such incidents. For Typhoon Damrey this agency initially provided 250,000 dollars to the Vietnam Red Cross in order to establish clean water, sanitation and hygiene services.

The European Commission also supplies funding for relief and humanitarian aid to Vietnam. 2016 marked the deliverance of €2 million to provide communities affected by drought and saltwater intrusion with safe water, cash and safe hygiene practices. Other efforts relate to the devastation caused in 2013 by cyclones Wutip and Nari. Through the Disaster Preparedness Programme (DIPECHO) the Commission focuses to promote risk management and increase community resilience to natural disasters. The government of Vietnam, supported by the European Commission has made progress in disaster risk reduction. The high susceptibility of floods and typhoons that affect Vietnam calls for more aid though.

Some organizations exist to supply direct aid to the people of Vietnam in order to relieve the stress of natural disasters. Children of Vietnam started in 1998 by Ben Wilson, works in providing educational, nutritional and housing aid, focusing on the needs of Vietnamese children and families. This organization goes as far as bicycle and school scholarships, training families to raise livestock and to farm rice fields and fruit trees for higher productivity.

East Meets West Foundation is another non-profit humanitarian organization providing aid to Vietnam and working to downsize poverty. The people of this foundation look to increase self-sufficiency by improving health, education and economic conditions within Vietnam.  East Meets West brings education to low-income children, supports children with disabilities and developed Clean Water Program to supply potable water to over a hundred thousand people. Foundations such as these provide relief and help to a country that is faced with recurring natural disasters. Humanitarian aid to Vietnam is pertinent to the success of development within the country.

– Bronti DeRoche

Photo: Flickr

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The Success of Humanitarian Aid to Yemen

YemenThe State of Yemen has been embroiled in a civil conflict since the early days of its U.S. and Saudi-backed establishment in 1990. Throughout the following two decades, various political and religious groups vied for power against the rule of Ali Abdullah Saleh. This power was mainly secured through a state of military patronage – meaning that his rule was “legitimized” by military prowess and a persistent framing of political and economic issues as the domain of military families.

As a result of local and international criticism of the ruler’s human rights violations, Arab Spring protests brought about a transition of power to his Vice-President, Abed Rabbo Mansour al-Hadi. It was during this time of instability that the modern crises began to unfold.

The main actors in the modern conflict, as of 2014, are Hadi’s government (backed by Saudi and the U.S.), Houthi Shi’a rebels (backed by Iran), and Al-Qaida (supported by some disillusioned supporters of Saleh). The ensuing conflict has been marked by Saudi and Iranian proxy-interference and a seemingly hopeless humanitarian situation.

Prior to the establishment of the Yemeni Arab Republic in 1990, the country was already the regions most impoverished. Water was scarce, reliance on foreign imports high and the governance constantly challenged. Now, after four years of conflict, the hope of a speedy reconstruction process has been lost and the civilian casualties are catastrophic. The U.N. humanitarian aid official in Yemen has confirmed that the number of civilian casualties has risen to over 10,000.

Currently, four out of five Yemenis – a population of 25 million – are in need of humanitarian assistance. These people face starvation, water pollution and rapid spread of disease, to say nothing of the daily toll of war on their psyche and community affiliations. Yet, the most horrific reality of this situation is the lack of humanitarian aid to Yemen that has been provided, mainly due to the unyielding air raids and mortar attacks which specifically target civilians.

Humanitarian Aid to Yemen

In a more forgiving context, the goal would be to provide food, medicine and various structural support upon the brokerage of a ceasefire. Unfortunately, to date, the success of such a deal in Yemen has been unattainable.

In 2017, the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) estimated Yemen’s needed aid at $2.3 billion. In the same year, the largest financial contributor to the crisis, the U.S. government, provided around 23 percent of the needed aid. The U.S. contribution was followed by aid from Saudi Arabi and the United Arab Emirates. In total, the amount of aid pledged by the international community covers 56 percent of the need.

Of the aid provided, 33.7 percent has been allocated to cover food security programs and 15.3 percent has been put towards health assistance. The main recipients of this funding are the World Food Programme, the United Nations Children’s Fund, the World Health Organization, and the Red Crescent Society of the United Arab Emirates.

The Discrepancy in Humanitarian aid to Yemen

With nearly half of all humanitarian aid to Yemen going to food and health programs, the amount remaining for other necessities – which affect the long-term viability of the country’s survival – are severely underfunded.

Currently, only one percent of aid is being given to Save the Children, an international humanitarian organization that works to ensure the protection of Children’s Human Rights. Furthermore, only .2 percent has been allotted to the United Nations Population Fund (UNFPA), which typically works on issues of reproductive rights and safety and ending female genital mutilation.

At the moment, the provision of food and health aid is most urgent, however, it is vital to ensure further funding for programs that will help Yemen rebuild after the crisis.

 – Katarina Schrag

Photo: Flickr

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Women’s Empowerment in Serbia

Women's Empowerment in Serbia In Serbia, gender inequality is prevalent in the workforce. Disproportionate responsibilities for household tasks, the lack of flexible work arrangements, the continued practice of traditional gender roles and low demand for female employees lend to inequalities among business and governmental roles.

According to research by the World Bank, the employment rate of women is 26 percent lower than it is for men, resulting in higher unemployment and inactivity rates for women. When addressing self-employment and company owners, men constitute 72 percent of those who are self-employed and 71 percent of business owners. Men also make up 80 percent of ministerial positions in government, leaving a disproportionally small percentage of women in positions of authority. The largest discrepancies in employment are evident when discussing uneducated women and girls.

Women in Serbia are disadvantaged due to an educational system that does not promote a balance between work, school and domestic duties. Many lose opportunities to pursue education or attain work experience because of the expected duties of women, such as unpaid household work. Women who are in need of work, due to their economic situation or cost of living, are often forced into lower-paying jobs.

Employment rates rose 4.7 percent for women between 2012 and 2014, but many of these jobs proved to be temporary positions, leaving many uneducated women and girls living in rural locations at a disadvantage. However, various entities are looking at education and work-related gender equality reforms to enhance women’s empowerment in Serbia.

Multiple NGOs and gender advocates are working to influence the government for women’s empowerment in Serbia. The areas of concern relating to gender inequality include the electoral quota, violence against women, women’s entrepreneurship and gender-responsive budgeting. Several laws have been passed to address these issues, some being the Gender Equality Law of 2009, National Strategy for the Improvement of the Status of Women and Promotions of Gender Equality and the Action Plan for 2010-2015. These laws center on the elimination of all forms of discrimination and violence against women.

The United Nations Development Programme (UNDP) also promotes its goal of equal participation in economic activities and decision making. UNDP’s initiative focuses on building lives free of violence against women, in order to enhance women’s empowerment in Serbia. UNDP’s focus on violence against women addresses the fact that 54 percent of women are exposed to some sort of violence. This program supports state institutions and actors that aid in gender equality and benefitting women and girls against discrimination and violence.

U.N. Women and U.N. Global Impact also worked with twelve companies to sign the Women’s Empowerment Principles. These twelve companies committed to transforming current business methods to promote gender equality and women’s empowerment as core business objectives. The principles addressed flexible working arrangements, such as maternal leave, promotion of enterprise development, marketing empowering women and advocacy on behalf of women. These principles, laws and organizations are actively working to improve the lives of women in Serbia.

– Bronti DeRoche

Photo: Flickr

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Women’s Empowerment in Romania

Women's Empowerment in RomaniaWomen’s empowerment remains a crucial international issue, with each nation facing its own set of challenges. Significant progress has been made in improving gender equality over the last fifty years, but setbacks still remain regarding women’s empowerment in Romania.

After the collapse of communism, Romania began the slow process of democratization, which triggered many economic, political and social transformations, all with varying outcomes regarding gender equality.

In 2009, a financial crisis occurred throughout the country, resulting in financial assistance packages from the International Monetary Fund (IMF), the World Bank, the European Commission and the European Bank for Reconstruction and Development (EBRD).

During this time, continuous changes were made in legislative provisions involving employment and the work-life balance of Romanians. This posed an issue, especially with the dissolution National Agency for Equal Opportunities between Women and Men in July of 2010. Between 2008 and 2010 the unemployment rate increased by 1.2 percent for men and by 1.8 percent for women, exposing the labor market as favorable to men.

According to a recent report, many laws still make it difficult for women to get a job, start a business or fully participate in the economic life of Romania. Discriminatory rules remain utilized in the country which ban women from certain jobs, limit their ability to make legal decisions and even restrict access to capital from women-owned firms.

Despite these changes, there are many crucial efforts being made to increase women’s empowerment in Romania. The International Finance Cooperation (IFC) through its Banking-on-Women Program has established a loan agreement with Garanti Bank to help Romanian women run their own businesses. Since launching in Europe, the Middle-East and North Africa in 2011, the Banking-on-Women Program has provided over $130 million to six banks for lending to women entrepreneurs.

The labor market segregation is also closely linked to the educational system. Unfortunately, many women in Romania have been greatly deprived of receiving an education. Traditional female domestic roles are still upheld by society and even taught in the school system. Textbooks promote a male-dominated world, leaving girls feeling inferior. Many women do not see the connection between education and getting a job, therefore girls are often taken out of school in order to marry or help with household chores.

Location also impacts the connection between women and education. Around 68 percent of women in urban areas are gaining a secondary education, while only about 42 percent of women in rural areas are receiving a secondary education.

Furthermore, evening attaining a university degree does not help women outright. Despite large numbers of women graduates and high qualifications, women are not equally represented in decision making or professional levels.

To combat this, the Educational Priority Areas (EPA), in partnership with UNICEF and the Institute for Education Sciences, targets disadvantaged communities to increase women’s access to education. With an emphasis on quality communication between schools and parents, and schools and authorities, this project trains teachers with inter-cultural approaches to education while creating a curriculum that will keep students interested and informed.

In addition, UNICEF has helped set up a number of education centers with girl-friendly educational programs. By changing the curriculum and textbooks to accurately represent a balanced gender perspective, this project seeks to decrease the school dropout rate and promote education for everyone, especially women. Since knowledge is power and education drastically alters the economy, this is a positive step towards women’s empowerment in Romania.

With these work and education efforts being made, women in Romania stand a chance to gain their own independence and positively improve the Romanian economy.

– Kailey Brennan

Photo: Flickr

Credit Access in Jamaica

Credit Access in JamaicaEarly in September 2017, the Executive Vice President of the Inter-American Development Bank, Julie Katzman (IDB), and the Minister of Finance and the Public Service, Audley Shaw, signed a pact for a loan of $20 million that will allow for greater credit access in Jamaica for micro, small and medium enterprises.

This initiative seeks to implement limited credit pledges to compensate approved financial institutions to upturn their lending to micro, small and medium enterprises in Jamaica. It will benefit the credit enhancement facility that was formed in 2009 and managed by the Development Bank of Jamaica.

The loan will permit the credit enhancement facility to assure a higher percentage of loans, with up to a maximum of $385,000.

These partial credit guarantees provided by the credit enhancement facility are anticipated to reimburse micro, small and medium enterprises that are incapable of meeting insurance requirements. As a result, the credit enhancement facility is acknowledging one of the major issues that limit an enterprise’s access to finance. Katzman pointed out that this will be the blueprint for an improved inclination and capability to loan to the micro, small and medium enterprises in the long run.

Such loans will enable relationship-building efforts among financial institutions and the enterprises, along with supporting the growth of the skill-set to measure credit earnestness. Credit access in Jamaica has become widely acknowledged, with enterprise owners becoming aware of the opportunity to obtain loans.

Since creditors have established greater credit access in Jamaica, the island’s central bank updated its reports noting that there was a collapse in new non-performing loans (NPLs). The collapse accounted for more than $1 billion from 2014 to the end of last December.

Securities institutions have, as a result, provided better credit underwriting and supervision for all commercial banks, building societies and merchant banks. These advances validate the banks’ commitment to managing the credit risks inherent in their portfolios, especially in a context where borrowers have demonstrated an increased appetite for debt.

Over the last two years, the Bank of Jamaica has stated that it has approved longer-tenured loans that back the facilitation of credit terms to revamp borrowers’ servicing of loans.

– Jalil Perry

Photo: Flickr