Archive for category: Global Poverty

Key articles and information on global poverty.

Discussing Differences Between the TPP and the RCEP

ChinaThree days after President Trump’s inauguration, he executed one of his major campaign promises: withdrawing the U.S. from the Trans-Pacific Partnership (TPP). Whether or not the TPP will outlast the U.S. withdrawal, China and fifteen other regional partners have forged ahead with a free-trade agreement of their own, the Regional Comprehensive Economic Partnership (RCEP).

One of the differences between the Trans-Pacific Partnership and the Regional Comprehensive Economic Partnership is that the former was slated to account for almost 40 percent of the world’s GDP and 10 percent of its population, while the latter comprises nearly 40 percent of GDP and almost half of the global population.

Many analysts have framed the differences between the TPP and the RCEP in terms of the balance of power between the U.S. and China, but for many of the countries involved, free trade is first and foremost an economic issue. Like most free-trade agreements, TPP and the RCEP center on tariff reductions. By liberalizing the international exchange of goods, many economists believe increased competition will stimulate growth in each country’s comparative advantage.

While the TPP aimed to remove tariffs completely on over 90 percent of traded goods, the Regional Comprehensive Economic Partnership attempts to merely reduce tariffs on only 80 percent of goods. The TPP also went further in attempting to curtail government-subsidized industrialization and implement environmental and labor regulations.

Despite the projected benefits for all countries involved, free trade agreements have been criticized for their potential harm to workers. Not only President Trump, but presidential candidate Bernie Sanders advocated for leaving the TPP. Senator Sanders held valid concerns about the continued widening of the international labor pool for American companies.

Indeed, despite the TPP’s projected contribution of 0.6 percent to U.S. GDP, this growth would have occurred in only the country’s comparatively advantageous sectors such as agriculture and advanced technologies, at the expense of every other sector. In the process, workers in less efficient sectors would experience displacement and, without a safety net, suffer in the near-term. On the flipside, the TPP would have contributed more than 10 percent GDP growth to countries like Vietnam and Malaysia, each willing to capitalize on their low labor costs.

In India, though, one of the potential signatories of RCEP, concerns about the displacement of its agriculture industry have slowed negotiations. The Indian parliament is hesitant to liberalize trade and capital flows for fear of allowing large agribusinesses to displace millions of small farmers. Though the end result of structural change may very well be improved efficiency and cheaper food, the transition will inevitably feature dispossession.

Despite minor setbacks, one of the final differences between the TPP and the RCEP is that the latter has a greater chance of coming to fruition. If it does, and only time will tell, economic integration will certainly bring growth, and disruption, to its signatories.

– Nathaniel Sher

Photo: Flickr

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How to Help People in India

How to Help People in IndiaAs people in a wealthy, Western nation, we should feel the need to aid other countries that are less fortunate than us. India is a nation that can use all the help it can get, and there are a number of ways to help that do not require a financial contribution. More than 24.3 percent of India’s population lives below the poverty line, which is estimated to be around 267 million individuals. That is a massive number of people who have to survive on around a $1 a day. If you’re wondering how to help people in India, here are a few ways.

Fundraising
Fundraising is a great way to use social circles to raise money for a cause. Fundraising can be on a small scale, such as starting an online campaign to raise money for a nonprofit, or it can be more active, such as hosting a dinner party and charging guests $5 to attend. There are many different ways to fundraise, most of which do not require much initial financial investment. A bake sale, for example, would likely cost much less than it would raise in the long run. Similar ideas are a garage sale, plant sale, or offering to do yard work in exchange for a donation.

Volunteering
Many nonprofit organizations need all the help they can get, and they are doing great work to end poverty across the globe. These organizations often do not have much funding to hire staff members, so any volunteer work they can get is a big help. Examples of organizations that work in India but have offices in the United States are the Global Fund for Women and the American India Foundation. Both these organizations work to reduce poverty in India, either through aiding the economic advancement of women or just generally.

Donate
While volunteering and fundraising are extremely important and helpful ways to assist a cause, what it all comes down to is funding, and most of these causes are very underfunded. With 267 million people in poverty in India, it would be impossible to achieve goals of poverty reduction without donations from individuals. Many organizations give a clear picture of what your donation will be used for, and certain children’s organizations will allow you to sponsor a child through your donation as well. Children International works in India to improve sanitation conditions to improve the health of children and you can sponsor a child through them. Many other organizations, such as World Vision and Save the Children India, have similar programs.

Regardless of how you decide to contribute, it is important that you do. These organizations lack funding and are sometimes understaffed, and can always use the help. It is easy to feel like we cannot make an impact from so far away, but these are some ideas for how to help people in India. Whatever you do, you are making a difference.

– Liyanga De Silva

Photo: Flickr

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How to Help People in The Gambia

Help People in The GambiaAt the westernmost tip of Africa exists one of the smallest and poorest countries on the entire continent. The Gambia is a nation of just over two million people and roughly 75 percent of the population live in poverty. The 2011 U.N. Human Development Index (HDI) assessed The Gambia as ranking 168th out of 187 countries. The HDI ranks countries based on their level of human development as a society, averaging things like life expectancy, per capita income and birth rate to make projections.

The Gambia scored so poorly on the HDI for a variety of reasons, but one predominant contributor is poor conditions leading to lack of food and agriculture production. About 60 percent of The Gambia’s population depends on some sort of farming for survival. Despite the fact that The Gambia River runs clear across the middle of the country, only 16.7 percent of the country’s available land is arable. This, in conjunction with frequent and erratic rainfall make the life of a Gambian subsistence farmer an especially tough one. The peak rainy season runs through the duration of the summer, hence food production during this time is negligible. Families who depend on subsistence farming – that is, growing enough food to feed themselves – attempt desperately every year to stock their food supplies in anticipation of the rainy season.

The harsh reality of the situation is that the circumstances are not getting any better, weather patterns become more unpredictable by the year and the price of food in the Gambian economy continues to rise steadily. The combination of all of these factors has led to the emergence of a global need to help people in The Gambia. One particular charity organization, which makes strides to improve life for those in The Gambia, is Aid for Africa. Since its inception in 2004, Aid for Africa has worked to combine the efforts of nonprofit organizations working in Sub-Saharan Africa to help those in need. They have made an impact on the lives of impoverished Gambians by establishing “community based self-help programs,” which aim to provide people with the skills and resources they need to escape the cycle of poverty.

The quickest and most effective way to help people in The Gambia is to donate to a charity such as Aid for Africa or even other similar charities. As members of the international community, we have an obligation to help those in need, and now, more than ever, the people of The Gambia need our help to escape poverty.

– Tyler Troped

Photo: Flickr

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Tibetan School for Blind, Braille Without Borders, May Close

Braille Without Borders Is in DangerBraille Without Borders, the renowned school for the blind, is in danger of being shut down. The institution was co-founded in May 1998 by German born Sabriye Tenberken and Dutch born Paul Kronenberg in Tibet to empower students who are blind or visually impaired. A Tibetan agency wishes to discontinue integration training that helps blind people assimilate into society. No explanation has been given as to why.

Braille Without Borders is so named because its founders are determined to defy the odds. They hope to inspire blind and visually impaired children to overcome negative perceptions in society that prevent them from playing an active and inclusive role. To bring this to fruition, students are given a holistic education that encompasses academic and life skills.

The preparatory school that is in danger of closing teaches students how to read and write the Tibetan, Chinese and English Braille scripts. Students are also trained in different vocations such as animal husbandry, agriculture, market gardening, composting and working in the cheese industry. Through educating children holistically, the program ensures students can take control over their lives upon exiting.

Tenberken created Braille Without Borders out of frustration. She lost her sight at the age of 12 and decided at a young age, with support from her family, not to let society tell her what she is capable of. In a 2010 interview with Deutsche Welle, she stated that it angers her that impaired people are not taken seriously because others focus too much on the disability the person has.

Furthermore, prior to the program beginning, Tibetan blind children were social outcasts. People thought they were stupid or possessed by demons, and parents didn’t want to touch their own children. Tibetan citizens believed blindness was a curse from God because of an evil committed.

The success of the program has changed how the blind are perceived. Tenberken stated in the same interview that people stand up for the visually impaired now, as Braille Without Borders has been very successful in reducing the stigma against blind people and providing them with an education. No longer is it okay to call them blind fools. They are confident young people who contribute to society.

So far, the program has impacted the lives of 300 children ages six to 15. However, there is far more work to be accomplished. Statistics state 30,000 of the 2.5 million inhabitants of the Tibet Autonomous Region are blind or highly visually impaired. Compared to most areas in the world, this is above average. Climate and hygienic factors such as dust, wind, high ultra-violet light radiation, soot in houses caused by heating with coal and/or yak dung, and lack of vitamin A and D at an early age, contribute to the unusually high number of blind and visually impaired people in this region. A rehabilitation program for the blind and visually impaired is necessary to improve quality of life.

Braille Without Borders is in danger of closing if supporters do not act now. It has endured over the past 19 years due to donations and encouragement from people outside of Tibet. If the school is closed, Tenberken is gravely worried students will be sent to schools where they won’t receive training to become self-sufficient. Supporters can continue to aid the program’s efforts through donations. Learn more ways to help on the official website of Braille Without Borders.

– Jeanine Thomas

Photo: Flickr

Why Is Gabon Poor? The Results of Unchecked Inequality

Why Is Gabon PoorWhy is Gabon poor? This is a question that is, unfortunately, stereotypically asked about any African country. This is particularly the case with Gabon, due to the fact it is not historically one of Africa’s most developed nations.

What is even more unfortunate is that Gabon fits this stereotype very well, as it is one of the poorer countries in the world. According to the World Bank, the country’s poverty headcount was 32.7 percent as of 2005.

This is interesting because, on a larger international scale, Gabon’s economy is doing relatively well. According to the CIA World Factbook, Gabon’s GDP growth has been significant over the last few years, with 4.4 percent growth in 2014, 3.9 percent in 2015 and 2.3 percent in 2016. While there has been a decreasing trend in these figures, they are still substantial. Gabon’s GDP per capita is worth noting, too. Listed at $19,100 as of 2016, the country is ranked 88th in the world.

So, if Gabon’s economy is doing reasonably well on the international stage, why is Gabon poor? The answer, it turns out, is centered around income inequality.

While Gabon’s national income has greatly benefitted from oil exports, its workforce has not seen these returns. As recently as 2015, Gabon’s unemployment rate was 28 percent, one of the highest in the world.

This means that, simultaneously, Gabon’s national income has been rising quickly while almost a third of its workforce remains unemployed and therefore unable to reap those benefits. The result is rising inequality that has devastated the country. As of 2005, the lowest 10 percent of Gabon’s population held only 2.5 percent of household income, while the highest 10 percent held 15 times that amount at 32.7 percent of household income.

Gabon has thus been left in an awful situation. With a third of its population unemployed and a third of its national income going to the top 10 percent of its population, very little funds are left over to bring the country’s poor out of poverty and into the workforce. As these figures worsen, the hole Gabon has dug continues to get deeper.

If Gabon wants its economic growth to be sustainable, the country must improve its fiscal management. By allocating more of its national income to the poor and by prioritizing job growth to lower its unemployment rate, Gabon could see real gains that last beyond the short term and set the country up as one of the region’s major economies.

So, why is Gabon poor? Systematic inequality has ravaged the country, but there is opportunity for change. As the country industrializes and continues to see economic gains, the international community must continue to observe the country’s financial management.

– John Mirandette

Photo: Flickr

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What Causes Poverty in San Marino?

What Causes Poverty in San Marino?

San Marino, said to be the world’s oldest republic, is a small country landlocked by Italy. At only 23.6 square miles, it is the fifth smallest country in the world, only larger than Vatican City, Monaco, Nauru and Tuvalu. It is also one of the richest countries in the world, with an estimated 2021 gross domestic product (GDP) per capita of $54,982.45. Despite its wealthy status, the 2008 recession, from which the country is still recovering, has significantly increased poverty in San Marino.

The 2008 Recession

San Marino‘s main economic activities are tourism, banking and the manufacture and export of different goods such as clothing, ceramics, fabric, wine and spirits. As Italy surrounds it, most of San Marino’s economic sectors are highly supported by this nation; in fact, 90% of San Marino’s export market is supported by Italy. Italy also suffered from the 2008 recession, so its demand for imports from San Marino has lessened, which has, in turn, weakened San Marino’s economy.

After the recession, San Marino’s strong economy took a downward turn. Unemployment – which had been at its lowest in 2007 at 3% – jumped to 4.5% by 2009 and reached its peak of 7.9% in 2017. However, after significant efforts and initiatives, San Marino’s unemployment rate declined to approximately 5% in 2022. While poverty is not a major issue in San Marino compared to many other countries, the recession certainly caused a notable increase.

Unemployment

Although San Marino’s poverty rate is low enough that it is not necessarily significant enough to be recorded, such a rapid increase in unemployment likely led to hardship for a significant portion of San Marino’s population. Increases in unemployment cause greater stress for the individual and strain the government, as it puts more pressure on the government to support those who are unemployed. Additionally, it weakens the economy further, as those who are unemployed lose purchasing power.

Final Remark

Although the recession increased poverty, the government of San Marino has been working to curb its effects by eliminating its status as a tax haven. Notably, the country’s nonfinancial sector recovery, which started in 2014, has placed its economy in a strong position to face shocks.

Furthermore, as other countries have bounced back from the recession, demand for goods from San Marino has increased as well. Hopefully, as more countries start recovering, this will also help San Marino’s economy recover so that progress can be made regarding its poverty rate.

– Mary Kate Luft

Photo: Flickr
Updated: May 29, 2024

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USAID Helping People in Qatar

How to Help People in Qatar

Qatar is a nation of extreme economic stratification between rich and poor. An oil rich gulf state, Qatar’s economy is booming, with its GDP reaching a soaring $329.2 billion in 2016 – making Qatar the wealthiest Arab state. Despite this title, there are still unfortunately a large number of people living in poverty here. In this climate of extreme inequality, the question of how to help people in Qatar remains of vital importance.

This economic growth is coupled with a massive population spike, due to the influx of migrant workers needed to sustain the economic growth of the country. Migrant workers are estimated to comprise about 90 percent of the Qatari population, with nearly 60 percent living in what the Qatari monarchy officially calls “labour camps.”

This influx of migrant workers has been further exacerbated by the construction for the upcoming 2022 FIFA World Cup. Human rights groups have long condemned the working conditions of migrant workers in Qatar. Under the kafala labor sponsorship system, workers are dependent on their employers for their visas, living accommodation and even permission to enter or exit the country. Amnesty International has deemed labor conditions as “squalid and cramped,” while the International Labor Organization is launching investigations into the labor camps and systems surrounding the construction of World Cup infrastructure.

Qatar is an absolute monarchy, ruled by Emir Sheikh Tamim bin Hamad bin Khalifa Al-Thani. As an official ally of the U.S., diplomats from the U.S. have unique access to the small faction of the Qatari population that maintains control over the political and economic realities that the poor face. It is crucial that the U.S. uses its influence to advocate for the outrageous treatment of migrant workers, on whose backs the immense wealth and economic growth of Qatar is built.

USAID has already begun to answer the question of how to help people in Qatar, and are still working to implement a Memorandum of Understanding (MOU) regarding Cooperation to Enhance Global Food Security, signed in 2011. Dr. Rajiv Shah, then the administrator of USAID, signed the MOU, saying, “Both the United States and Qatar see food security as a development issue that must be addressed comprehensively and creatively.”

It is critical to the health and well-being of the impoverished Qatari workers that these goals be pursued. Moreover, resources must continue to flow to organizations such as USAID, which work to pressure the Qatari monarchy to provide a social safety net and adequate human rights for its subjects.

– Jeffery Harrell
Photo: Flickr

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Causes of Poverty in Kuwait Often Overlooked

Causes of Poverty in Kuwait

Despite being one of the wealthiest countries in the region, many of the citizens of Kuwait live in squalor and poverty, while their countrymen revel in the wealth of the nation. While Kuwaiti government officials deny the existence of extreme poverty in their country, and accurate data on the extent of its poverty is hard to come by, accounts coming from within the country help indicate what the causes of poverty in Kuwait are.

Kuwait has a GDP per capita of over $70,000, indicating that the roughly four million inhabitants should have plenty of wealth to support themselves, even in countries with costs of living much higher than Kuwait’s. Kuwait is also one of the most charitable countries in the Middle East and the world as a whole, according to the Charities Aid Foundation World Giving Index, with millions of dollars committed to charitable causes every year. Given these two factors, it would not be unreasonable to presume that the standard of living in Kuwait must be quite good.

However, most of this wealth appears to be consolidated in the top several percent of Kuwaiti citizens. Kuwait is a nation whose wealth is built on the back of its natural oil reserves, which comprises nearly the entirety of Kuwait’s industry. The large dips in oil prices over the past decade have begun to pressure the Kuwaiti economy, as 2015 marked its first budget deficit in decades.

There is undeniable wealth present in the country, which manifests itself in areas such as Kuwait’s excellent public infrastructure; nearly the entire country lives in an urban area and has easy access to clean water, sanitation and medicine. Yet the nation only employs just over 75 percent of its citizens, which leaves nearly one in four workers without an income to support their families. Though unemployment is just one of the causes of poverty in Kuwait, other causes are pointed to by Kuwaiti citizens themselves.

Writing in a column for the Kuwaiti Times, Thaar Al-Rasheedi talks about the divide between the wealthy and the poor, which he believes to include some 90 percent of Kuwaiti citizens. He points to the over a half million Kuwaiti who live in rented houses, and another 100,000 people who have applied for a house from the government but have yet to receive their housing. The reason for this, Al-Rasheedi points out, are the exorbitant prices on everything in Kuwait. “Salaries are high but, on the other hand, there is hardly a citizen who still has a single dinar by the 15th of each month,” Al-Rasheedi writes.

He goes on to note that many Kuwaiti are forced into “intentional poverty” for half of every month to be able to afford enough food to survive until their next paycheck. Meanwhile, the oil tycoons live comfortably off their millions and tell the rest of the world that there are no poor people in Kuwait.

Though the poor of Kuwait seem to be largely glossed over, at least by the Kuwaiti government, citizens of the nation feel it is a very real issue, and the causes of poverty in Kuwait stem largely from the extreme top-heaviness of wealth distribution in the nation.

– Erik Halberg

Photo: Flickr

How to Combat Poverty in Tanzania

poverty in TanzaniaAfrican countries tend to be surrounded by the stigma of poverty and underdevelopment. However, most people are oblivious to the fact that the region is, in fact, rich in natural resources. Tanzania falls into this category. The East African nation has no dearth of wildlife, land or minerals. Despite being endowed with such advantageous conditions, the question of poverty in Tanzania arises time and time again.

About 12 million people, or 28.2 percent of the population, are living in basic needs poverty, 80 percent of which reside in rural areas. The workforce is concentrated in the agriculture industry, which employs 75 percent of Tanzanian workers. The land can only sustain a certain number of commercial farmers, leaving the majority to make ends meet via subsistence farming.

The internal production of agricultural goods is not being supported. Cereals and other grains are often imported from international markets instead of being purchased from domestic producers. Shifting production back to the country will not only employ many people, but will also stimulate the GDP.

The underlying reason for poverty in Tanzania can be attributed to a lack of education. Focusing on education for all will reduce family sizes and expand career options, especially for women. Women in Tanzania have approximately five children, according to the World Bank. 42 percent of children face malnutrition because their parents have to allot their resources according to larger family sizes. Without enough money to feed their kids, sending them school is not an option. Education programs and family planning services have both been helping to curb the population growth in Tanzania; they also give women the opportunity to provide a supplemental income with the extra time they have.

Concentrating on education from a young age is vital for alleviating poverty in Tanzania. Multiple doors of opportunity will open up for them, and they will not be trapped into subsistence farming. Training and education will make Tanzanians adept and allow them to be competitive in the international economy. When fewer people are dependent on agriculture for their livelihood, farmers will have more available arable land and more opportunities to pursue commercial farming.

Unlike most African nations, Tanzania did not suffer through internal strife. This gives them a leg up and increases the expectations for improvement. Tackling education should be the top priority of the government in their domestic policy.

– Tanvi Wattal

Photo: Flickr

Two Major Causes of Poverty in Georgia

Causes of Poverty in Georgia
Georgia is a unique country in that it is at a crossroads where Europe and Asia meet. Though rich in history and culture, the country has an unemployment rate of 12 percent, a registered poverty rate of about 11 percent and a relative poverty rate of about 20 percent.

Georgia won its independence from the Soviet Union in 1991, but with that independence came social and economic challenges that continue today. A poverty analysis done by the Asian Development Bank outlines 17 trends in poverty, but there are two in particular that are clear causes of poverty in Georgia.

The first is agricultural stagnation. Georgia is a country with vast natural diversity and conditions that lead to agriculture employing almost 50 percent of the population, yet they only account for 10 percent of the GDP. This discrepancy can be attributed to fragmentation of land, poor connectivity to markets, weak support services and degraded rural infrastructure.

The economic growth that Georgia has recorded is largely unrelated to agricultural development; rather, it is due to foreign investment focus on real estate and banking, and as Rural Poverty Portal states, “…the downward trend in agrarian production has been accompanied by a growing incidence of rural poverty.”

The second cause stems from the first, which is limited access to and low quality of social services. The nearly 50 percent of the population that is employed by an unsuccessful agricultural industry and those unemployed altogether do not have access to quality social services. Education to gain skills for other developing industries in Georgia’s economy is incredibly basic and underfunded. In fact, the poverty analysis cites a high dropout rate. Healthcare is also rendered almost completely unaffordable, with nearly 65 percent of expenses being paid for out of pocket. These two social services alone can really limit socioeconomic mobility for the poor of the nation, thus ineffective social services are one of the causes of poverty in Georgia.

 

Poverty in Georgia

 

The two causes discussed are not isolated; rather, they are intertwined with other major causes. However, they are among the most discussed and relevant of the causes of poverty in an otherwise rich and diverse nation.

For the issue of agricultural stagnation, a shift in both domestic and foreign investment could make a critical impact. The Georgian National Investment Agency highlights different ways that groups can invest, like aquaculture, greenhouses and food processing.

As for limited social services, the government of the country has recently invested in and developed better healthcare opportunities through the new Primary Health Care Development Strategy 2016–2023, which was developed within the context of the 2014–2020 State Concept of Healthcare System of Georgia for Universal Health Care and Quality Control for the Protection of Patients’ Rights. These developments are happening because of raised awareness that brought the United Nations, International Monetary Fund, World Health Organization and others into the mix. Therefore, by raising awareness and starting discussions, the public services of Georgia can continue to improve and reduce these and other causes of poverty in Georgia further.

Photo: Flickr