Archive for category: Global Poverty

Key articles and information on global poverty.

Causes of Poverty in Sweden Mitigated by Strong Policy

Causes of Poverty in SwedenSweden is a nation in northern Europe that is home to about 10 million people. One of Sweden’s defining characteristics is its neutrality. Formerly a military power, it has been more than 200 years since Sweden has gone to war. This is not the nation’s only impressive accomplishment. Sweden’s other notable claim to fame is its robust economy. Overall, the economy is very strong, and measures have been enacted to reduce and alleviate the causes of poverty in Sweden.

Some statistics about Sweden’s economy:
• In 2016, the nation’s GDP was $511 billion
• The nation’s unemployment rate is about 6 percent

One strength that enables Sweden’s economy to achieve as much as it does is how easy the nation makes doing business. In fact, Forbes rated Sweden as the best country in the world for business in 2017. By comparison, the U.S., an undeniable economic power, is ranked 23rd. Some of the factors that Forbes took into consideration were innovation, taxes, technology, levels of bureaucracy and stock market performance.

Another factor that allows for Sweden’s economic success is its interest in defending and promoting gender equality. In 2016, the World Economic Forum created its Global Gender Gap Index and showed the progress that Sweden has made in this area. According to the index, Sweden trails just three nations, Iceland, Finland and Norway, in terms of gender equality. While economic gain may not be the first thing you think of when you improved gender equality, it really is the case. The European Institute for Gender Equality (EIGE) believes in a very simple cause and effect relationship: “If the EU stepped up its efforts to improve gender equality, more jobs would be created, GDP per capita would increase and society would be able to adjust better to the challenges related to the ageing population.”

These and other actions have limited the causes of poverty in Sweden and ensure a good quality of life for its citizens.

– Adam Braunstein

Photo: Pixabay

Is it Possible to Reduce the Sint Maarten Poverty Rate?

Sint Maarten is a country located in the Caribbean that shares a portion of the island it is located on with the French part of the island, known as Saint Martin. Although the island is a beautiful and popular destination spot for tourists, poverty is a problem for the citizens of Sint Maarten.

Poverty has created very dangerous problems for the small country, including issues such as crime, illiteracy and teenage pregnancy. Poverty is defined as “the total absence of opportunities, accompanied by lack of education, physical and mental ailments, social instability and unhappiness”. The Sint Maarten poverty rate has not quite reached a state of crisis, but there have been definite warning signs for the country.

The Sint Maarten poverty rate is an issue that has been present for the past few years. The Board of United Sint Maarten Party has said that “The increased crime rate wherein people are scared to carry out their daily routine, and are in constant fear of becoming victims of crime even in their very home, is evidence enough that the poverty exists on St. Maarten. Another example is when you visit certain communities and you find up to 6 persons living in a one-bedroom apartment with just the bare essentials to get by, that is poverty.”

According to Trinidad & Tobago MCO, the unemployment rate in Sint Maarten is 11 percent, the illiteracy rate is 4.1 percent, residents without a secondary school education is at 42.9 percent and 22 percent of households have no income.

Fortunately, the Sint Maarten poverty rate can be reduced. The country has been recovering from the recession of 2008-2009, and a positive economic growth is envisaged in the coming years. The economy is very open in Sint Maarten, meaning that developments in the external environment—mainly the U.S. economy— will directly affect the small island country’s economy in return. According to the Economic Outlook of Sint Maarten, the economy has a relatively good starting position for further expansion, and is also said to be able to absorb financial as well as economic setbacks better than other Caribbean countries. These factors will contribute to improving the Sint Maarten poverty rate.

– Sara Venusti

Why is Guinea-Bissau Poor?

Why Is Guinea-Bissau PoorLocated on West Africa’s Atlantic coast, Guinea-Bissau is one of the world’s poorest and most unstable nations. Approximately 69 percent of the population lives below the poverty line, and 25 percent of the population suffers from chronic malnutrition.

Nationally, nearly 11 percent of households in Guinea-Bissau are food insecure. In certain regions, though, the percentage of food insecure households can reach up to 51 percent. Despite the widespread poverty, real GDP growth is projected to reach an average of five percent during the 2016-2018 period if agricultural output remains robust and political stability is maintained. So, if it is projected to continue its trend of economic expansion, why is Guinea-Bissau poor?

In order to answer the question “why is Guinea-Bissau poor?”, the country’s history of severe political instability must be taken into account. Since gaining independence from Portugal in 1974, there have been four successful coups in Guinea-Bissau, and 16 coups that were plotted, attempted or alleged. There have also been frequent changes in government. Led by Umaro Sissoco Embaló, the current government is the fifth Guinea-Bissau has had since elections in 2014. This political instability has put a strain on the country’s fiscal situation and has hindered growth and poverty reduction. Inefficiencies in public spending further inhibit the flow of resources to regions that require improved service delivery in order to access basic services.

Political instability has particularly stalled the reduction of rural poverty. During the civil war that took place from 1998 to 1999, 300,000 urban dwellers fled to rural areas to escape the conflict. Increased competition for land and subsequent poor harvests have diminished both food supplies and rural livelihoods. The economy has also suffered, as agriculture represents 90 percent of all exports.

Approximately 85 percent of Bissau-Guineans rely on agriculture as their primary source of income. Irregular amounts of rainfall and volatile prices of imported rice and exported cashew nuts have made chronic food insecurity a reality for 11 percent of the population. Food insecurity, inadequate health services and poor water and sanitation have contributed to widespread malnutrition.

The reliance on cashew nuts for economic livelihood leaves nearly two-thirds of the population vulnerable to trade shocks. According to the World Bank, the diversification of Guinea-Bissau’s economy is of the utmost importance, as it will bolster the country’s resilience against potential economic shocks. Moving forward, maintaining political stability and addressing rising inequality will also be key in sustaining and accelerating the rate of poverty reduction.

The International Monetary Fund (IMF) also asserts that in order to maintain the current positive economic trajectory, efforts should focus on strengthening fiscal discipline and advancing structural reforms.

“Growth has been supported by high cashew prices, increased construction activity, and continued improvements in the supply of electricity and water,” stated Tobias Rasmussen of the IMF. Rasmussen led the IMF team that visited Guinea-Bissau in May 2017 to conduct discussions on the third review of the country’s IMF-supported program. In an end-of-mission press release, Rasmussen added that the improvement of revenue mobilization and the strengthening of expenditure controls would also be integral to the continuation of Guinea-Bissau’s economic expansion.

With a focus on addressing inequality through such means as the enhancement of resource delivery as well as advancements in technology and market support systems, it is the belief of organizations like the IMF and the World Bank that Guinea-Bissau can continue to reduce its poverty rate over the coming years.

– Amanda Quinn

Photo: Flickr

, ,

Gates Foundation Report: Optimism in the Fight Against Poverty

Gates Foundation ReportThe recently published Bill and Melinda Gates Foundation report entitled ‘Goalkeepers: The Story Behind the Data’ seeks to highlight the progress made by public health workers and governments around the world in the fight against poverty and infectious diseases. The Foundation plans on publishing a Goalkeepers report every year until 2030. Their main objective is to demonstrate that investments in the fight against global poverty truly do have an impact, thus fighting skepticism of foreign aid. This year’s report puts the progress in this area in perspective; contrary to what seems to be a prevailing pessimism about the state of the world, the 2017 Goalkeepers report clearly demonstrates that the “world is better now than 25 years ago”.

The report uses 18 data points from the U.N.’s Sustainable Development Goals, signed in 2015 by world leaders, that are particularly relevant to health and well-being, such as infant mortality and vaccination. Although improvement is stagnating, a majority of the indices show great improvement in the last two decades. Since 1990, more than 100 million lives of children five years or younger have been saved. The rate of infant mortality per 1,000 has dropped from 85 to 38. Maternal deaths have fallen from 275 per 100,000 live births to 179 in 2016.

The report shows that the world is better now than 25 years ago for a large portion of its most vulnerable members. Under the World Bank definition of poverty (living under $1.90 a day), the global poverty rate has decreased from 35 percent in 1990 to 9 percent in 2016.

In terms of health and the fight against infectious disease, the report also emphatically demonstrates how the world is better now than 25 years ago. HIV, for example, has had a remarkable decline in the past two decades, from 0.6 deaths per 1,000 people to 0.25 in 2016. Smoking rates have also significantly improved around the world. In 1990, 22 percent of people 10 years or older smoked; today, that number has dropped to 16 percent. The most impressive improvement is in widespread vaccination, which the report claims is “one of the most impressive public health stories in global health”. 89 percent of target populations have been covered by the eight major vaccines, compared to 73 percent in 1990.

The Sustainable Development Goals have a 2030 deadline, which is why the Gates Foundation report will be released every year until then. Although the numbers demonstrate that the world is better now than 25 years ago, Bill Gates has expressed some concern over a decline and stagnation in funds directed towards foreign aid and global health, especially in the fight against HIV. The remarkable feat of progress achieved so far by the international community at large should serve as an impetus for continued and increased funding, something the Gates Foundation intends to push for.

– Alan Garcia-Ramos

Photo: Flickr

, ,

Taking Action on Poverty in Africa: Key to the Future Success

Poverty in Africa Is Key to the Future of the ContinentA recent report published by the ONE Campaign entitled ‘The African Century’ shows the urgent necessity of the international community to pay attention to development on the African continent. With Africa’s population set to double by 2050, the authors of the report have stated that taking action on poverty in Africa is key to future of the continent and of the globe.

Although population growth is rapid and expansive on the continent, the flow of international aid into Africa has been stagnating and decreasing in recent years. Since 2012, the three most significant forms of financing for African countries—official development assistance, domestic revenue and direct foreign investment—have been steadily decreasing; they are now at their lowest aggregate level since 2009. Since 2012, although its population has increased by 15 percent, the combined resources available for development in Africa have nominally decreased by 22 percent.

The authors of the report emphatically underline that the international community must start taking action on poverty in Africa as soon as possible. Alleviating poverty in Africa is key to the future of the continent, one which is uncertain right now and might present very serious challenges. With the population increasing to an estimated 2.5b billion by 2050, and 50 percent of them being 25 years or younger, there is a great risk of further destabilization of the region and massive waves of migration. According to estimates, by 2020 Africa’s unemployed population will equal that of Germany’s entire population, and 50 years from now that number might increase to 310 million, or half the employed population of continental Europe.

Donors who used to largely finance aid and development on the continent have been largely using aid budgets in the pursuit of short-term foreign policy interests rather than in fighting poverty. This shortsightedness might prove catastrophic. As a young population grows up in conditions of extreme poverty, conflict that resonates around the globe might be unavoidable. This is why the authors of the ONE report so emphatically claim that taking action on poverty in Africa is key to the future of the continent and the world. In its conclusion, the report calls for a renewed partnership with African countries, which include the doubling of investments in education, employment and empowerment “to support a programme of economic and policy reform across the continent”. Hopefully, the international community will heed this call and think in the long term in order to avoid catastrophe before it manifests.

– Alan Garcia-Ramos

Photo: Flickr

Causes of Poverty in Israel

Causes of Poverty in IsraelOf the 34 member countries of the Organization for Economic Co-operation and Development (OECD), Israel ranks twenty-sixth poorest when discussing gross income, or before government intervention. However, when poverty is discussed in net terms or income after government intervention, it is ranked second-poorest. According to a report by the Taub Center for Social Policy Studies in Israel, 31 percent of the country is living below the poverty line. Why is there such a discrepancy and what are the causes of poverty in Israel? There are a number of reasons.

  1. System of allowances
    The first of the causes of poverty in Israel is its system of allowances. While Israel, compared to other countries, collects a significant amount of income from the wealthy in the form of taxes, it lacks in its system of allowances. The government’s influence in curtailing poverty is at around 30 percent. Other countries’ participation is at around 60. Of the allowance payments made by the government, most are handled efficiently. Part of the solution lies in more system of allowances by the government.
  2. Low participation in labor market
    Another one of the causes of poverty in Israel comes from low participation in the labor market, specifically with two minority groups: ultra-Orthodox Jews and Arab Israelis. As of 2011, only 48 percent of ultra-Orthodox Jewish men and 28 percent of Arab-Israeli women were employed.According to a report by the Bank of Israel in 2015, “the dilemma [of poverty] becomes greater because about half of the poor in Israel belong to the ultra-Orthodox (Haredi) community – a population sector that attributes great value to devoting time to studying the Holy Scriptures – and the traditional Muslim community, in which there are cultural restrictions on the employment of women.”For these cultural reasons, some of the ultra-religious in Israel choose not to search for jobs and therefore fall into poverty. This is also one of the reasons why the government’s influence on curtailing poverty is so low; it believes it will encourage living on allowances instead of looking for other means of income.

These main contributors work in conjunction to create a difficult environment for the government to control poverty. Between the low participation in the labor market and therefore lower system of allowances by the Israeli government, the population has suffered from impoverished conditions.

To combat these issues, the OECD has offered some recommendations that will hopefully decrease the poverty rate, the first of which includes increasing competition and efficiency in the domestic economy. An OECD survey noted that the banking industry is inefficient and concentrated.  Therefore, should allow the entry of new competitors into the market, particularly in non-banking credit entities.

Another way to improve the apparent disparity in the labor market is to boost “investment in infrastructure and promoting skills, particularly among disadvantaged groups [which] can both enhance social cohesion and raise long-term growth.” One of the last recommendations given was improving education for those disadvantaged groups like Arab women and the Haredi population so that they may increase their income levels and contribute to the economy.

– Sydney Roeder

Photo: Flickr

Diversification to Reduce the Suriname Poverty Rate

Suriname Poverty RateThe Suriname poverty rate is 47 percent. It is estimated that more than 6 percent of the population suffers from multidimensional poverty, lacking good health, education and standard of living.

Malnutrition is a rampant problem. Many children are hospitalized for malnutrition and suffer lasting effects that extend into adulthood. In recent years, AIDS has also become one of the primary causes of child mortality.

The education system in Suriname is also wanting. At the same time, as many teachers are poorly trained, many students, mostly boys, leave primary school at an early age. The children that leave school are often forced to work. It is estimated that 8 percent of children between 5 and 14 engage in child labor under difficult working conditions.

As for the girls that are either discouraged from attending school or leave early, many are subjected to sexual exploitation and trafficking. Both inside and outside of prostitution, violent abuse toward children is a rampant problem.

Though the Suriname poverty rate is high, the country’s per capita income is also relatively high, standing at almost $10,000. Inequality between different geographic regions and ethnic groups accounts for the coexistence of the high national income and the high poverty rate.

The Surinamese economy relies on the extraction and exportation of minerals such as alumina, bauxite, gold and oil. While the production of such commodities employs hundreds of thousands of Surinamese and has at times accounted for almost 40 percent of government revenues, the production of these goods is limited to extraction and refinement. As a result, much of the population misses out on economies opportunities.

To lower the Suriname poverty rate, the government should utilize its mineral revenues to subsidize education, health and welfare for the disenfranchised parts of the population. Such measures will serve to increase the value of Suriname’s human capital and work toward diversifying the economy away from commodity exportation.

In addition to actions the Surinamese government can take to reduce poverty in the country, a number of international organizations are already working to improve the Surinamese economy.

The Inter-American Development Bank (IDB), for one, has dedicated millions of dollars in loans and grants under its Low Income Shelter Program (LISP) to provide housing for underprivileged Surinamese. The program has successfully housed more than 3,000 families.

Suriname’s longtime benefactor and ex-colonizer, the Netherlands has also allocated billions of dollars over the past two decades for microcredit lending and infrastructural repair. These efforts have helped facilitate entrepreneurship and stimulate Suriname’s economy from the bottom up.

If these international developmental commitments persist, there may be hope that Suriname can achieve its Multi-Year Development goals, growing small and medium enterprises by 10 percent over the next five years and lifting thousands out of poverty.

– Nathaniel Sher

Photo: Flickr

, , ,

Pediatric Heart Disease in Developing Countries

Pediatric Heart Disease in Developing CountriesPediatric heart disease is seen throughout the world and causes grave sickness in children. It is often complicated and hard to treat. With poverty and lacking resources, pediatric heart disease in developing countries becomes nearly impossible to manage.

It is difficult to determine how many children have heart disease because of lacking global data. Figures are generally surmised from industrialized nations. Since better diagnostics were implemented, experts estimate that 8-12 per 1,000 live births have heart disease. Children can also develop heart disease from heart rhythm disorders and infections (among other things).

Children with heart disease have very complicated health situations. Those born with a heart defect may have other birth defects. And as treatment improves and children live longer, they develop secondary diseases such as kidney failure.

Their situation is worsened by a lack of knowledge in developing countries. There is a common misconception that children do not develop heart disease. Parents may not recognize the serious symptoms, and as a result, children are often diagnosed later in life when treatment is harder and more expensive. Medical professionals do not always recognize heart disease in children, leading to misdiagnosis.

Worldwide, heart disease is expensive to treat. In the U.S. in 2009 the hospital cost of treating heart failure in children was thought to be $1 billion. This figure does not include outpatient visits, medications, treating secondary conditions, transportation and parents’ lost work.

Funding treatment of pediatric heart disease in developing countries is challenging. There is a lack of data to guide medical policy and infrastructure and the disease is likely under-reported. When poor countries decide how to best spend small healthcare budgets, it seems plausible to focus on more prevalent conditions that are cheaper to prevent, such as infection.

Providing adequate cardiac care requires significant resources. For simple heart surgeries, sterile consumables (such as drapes) are needed, as well as sophisticated equipment and trained personnel. More complex heart conditions may require more advanced equipment and highly educated providers.

Many children with heart disease in developing countries have surgically curable defects. Yet, because of costs, these children receive simpler “quick fix” surgeries. Another issue that developing countries have with providing acceptable heart surgeries is they often struggle with clean water and electricity, which are crucial in running any hospital.

Fortunately, many organizations see the struggle of treating pediatric heart disease in developing countries. In 2015, there was a survey of NGOs that provide care for this population. The survey lists more than 80 NGOs.

Some of these organizations perform mission trips to developing countries, where they perform heart surgeries in the local hospitals. Others bring children into industrialized nations for surgery and take them back after recovery. In some instances, organizations have worked with the country and local healthcare providers to build lasting cardiology programs that can serve the country more permanently.

Pediatric heart disease is a complicated condition. While seen throughout the world, it has a greater impact in developing nations because of higher birth rates. This does not mean it is not treatable. With great investment from NGOs and governments, children in developing countries can have the same outcomes as those in industrialized nations.

– Mary Katherine Crowley

Photo: Flickr

,

Causes of Poverty in Lithuania

Causes of Poverty in LithuaniaThough Lithuania has experienced marked progress since joining the European Union in the early 2000s, it still faces a number of challenges. In the aftermath of the financial crisis of 2008, many European countries experienced a spike in poverty. The rise in poverty in Lithuania was among the most significant, and, compared to other European nations, it has not necessarily recovered to its full capacity. Arguably the most significant causes of poverty in Lithuania are those factors that relate to inequality.

The vast inequality present throughout Lithuanian society is the result of a persistent lack of adequate social programs and fair incomes. In addition, many areas of Lithuania maintain a low standard of living, with poor access to social programs and services, quality education and non-agricultural employment opportunities. This is particularly true of rural areas that are largely disconnected from the state’s urban centers and therefore do not benefit from the prosperity of the Lithuanian government or local businesses. Improving infrastructure to connect rural areas to urban centers would supply additional opportunities to those residing outside the city rather than forcing them to pursue only opportunities in their immediate vicinity. To do so would eliminate one of the main causes of inequality and therefore chip away at the causes of poverty in Lithuania as well.

Within Europe, more equal societies typically have the lowest rates of poverty. These are the states that prioritize social protections and mandate an adequate income in order to support a decent living, whereas others neglect disadvantaged populations in favor of other kinds of spending. Thus, one of the main causes of poverty in Lithuania is also one of the main causes of inequality: lack of adequate government assistance and social protections. For example, Lithuanian pensioners often do not receive enough to live on and thus become dependent on their families, placing an additional burden on household incomes that are already low. A more equitable allocation of government spending and redistribution of government services would serve to provide poorer and more vulnerable populations the resources they need to rise out of poverty.

By national standards, nearly 30 percent of Lithuania’s population faces poverty and social exclusion, one of the highest rates among members of the European Union. A comparable portion of the population is considered at risk of poverty. These facts and the lack of opportunities and government assistance available to Lithuanians have driven Lithuanians out of the country in search of better employment, despite the growth of the Lithuanian economy. In 2016, 50,333 Lithuanians left the country, 5,800 more than in 2015 and 13,172 more than in 2014. Should this pattern persist, economic growth in Lithuania will eventually slow, resulting in higher rates of poverty and inequality. In addition, those leaving are likely to be skilled workers, which means that Lithuania could also soon face a brain-drain, deepening the economic downturn that could occur.

While the causes of poverty in Lithuania are relatively simple to identify, their implications for the future are complicated as the country moves forward. In order to stop the emigration that would inevitably worsen Lithuania’s poverty rate, there must be a shift toward more equitable social programs and an effort to improve the access of rural communities to urban centers, therefore exposing them to education and employment opportunities necessary to their success. Should these issues be addressed, it is likely that Lithuania’s recent prosperity will continue.

– Alena Zafonte

Photo: Flickr

, ,

Quality of Life Uncertain for Refugees in Kenya

Refugees in KenyaKalobeyei is a town located in the northwestern part of Kenya that was built by the U.N. refugee agency (UNHCR) along with the local government of Turkana county. The town was designed as a location where refugees could become integrated with the local community and where this integration would benefit shared services and markets, thereby reducing the cost for Western aid donors. Unfortunately, this has not exactly worked out as planned for refugees in Kenya.

There have been quite a few issues that have risen since the town’s creation. The most prominent of these issues is that Kalobeyei was established just as South Sudan’s civil war greatly intensified, causing many refugees in Kenya to arrive with hardly anything more than the clothes on their backs, as well as without the proper resources that would help them make an attempt at a new life.

The World Food Programme provides $14 per month as a cash allowance to each refugee, which is supposed to cover up to 80 percent of an individual’s needs in the town. This may not be enough to live off of due to the current conditions these refugees are left in after the civil war, especially since Kalobeyei is hosting nearly 40,000 refugees, including individuals from places such as South Sudan, Ethiopia, Uganda, the Democratic Republic of Congo and Burundi.

There have also been many complaints from the refugees in Kenya who are currently residing in Kalobeyei. Refugees say that little to nothing that they were promised has been offered in the town. They have found themselves in an isolated camp where both food and water are in short supply and that residents are at the mercy of thievery that goes on within Kalobeyei. One resident of the town—an Ethiopian refugee—said, “When they brought us here, we were told that the place would be like a community village with many development projects, a school, clinic, market and almost everything close by,” but there is close to nothing within the settlement that is within walking distance.

When the UNHCR’s office in Kenya heard of this story, communications director Yvonne Ndege had a drastically different description of what life was like residents of Kalobeyei saying that the town was in fact not built in a remote area and had markets, water tanks and primary schools on-site, as well as stating that “there is no heightened security situation or security threat at Kalobeyei or Kakuma.” She went on to explain that refugees had the option to visit the camp before relocating and that perhaps they “may have had different expectations,” despite having viewed Kalobeyei in advance.

Whatever the case may be, it is wise to be empathetic and understanding toward refugees in Kenya when it comes to these situations—having to relocate yourself and your family is never easy, and struggling in a new environment does not make anything less difficult. Hopefully, the UNHCR will empathize and refugees in Kenya will be able to resolve and overcome the issues with Kalobeyei, for the town is meant to only do good.

– Sara Venusti

Photo: Flickr