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Archive for category: Global Poverty

Key articles and information on global poverty.

Education, Global Poverty

ASEAN My World Survey Shows Shift in Global Governance

 Indonesia

September 23 marked the 50 year anniversary of the formation of ASEAN, the Association of Southeast Asian Nations. ASEAN was created in 1967 by the leaders of Indonesia, Thailand, Malaysia, Singapore and the Philippines in order to promote cooperation in economic, social, technical and educational growth. While ASEAN has expanded to include more than just these five Southeast Asian states, the coalition has been very successful in its efforts to reduce poverty.

According to Adam Steiner, the United Nations Development Programme administrator, the combined poverty rate of ASEAN countries dropped from 47% in 1970 to 14% in 2015. This was well beyond the ASEAN Millennium Development Goals for 2015, and the 2030 goal is now to completely eradicate poverty from ASEAN nations.

One thing that is noteworthy about the way ASEAN countries are working to reach the Sustainable Development Goals is the unprecedented participation from the citizens of these nations. The governments of these countries are working very hard to involve the people in the processes of poverty reduction, mainly with the launch of the ASEAN My World survey by the U.N. Member States. The My World Survey asked for the opinions of over 10 million individuals worldwide regarding their hopes for the future. There were a quarter of a million participants from the ASEAN region, and the survey results were used to shape the 2030 Sustainable Development Goals.

The My World survey asked subjects to choose which goals were most important to them, with the options ranging from “freedom from discrimination and persecution” to “a good education.” The data was also split up by demographics such as gender, age, level of education and HDI. The data is quite comprehensive and will allow for more impactful policymaking.

The development of ASEAN countries is already becoming much more inclusive of citizens, and this is a great step towards more sustainable governance and development in any nation. The survey was launched in 2015, and the results have already been used to create the ASEAN Community Vision 2025 and the Agenda for 2030, which shows the dedication of ASEAN nations to a more people-centered future. Additionally, the My World survey is the largest survey the United Nations has attempted in over 70 years, showing a potentially significant shift in the future of global governance.

While the eradication of poverty, among the other 2030 goals, is very ambitious to attempt in 15 years, ASEAN, as well as the U.N. Member States, has shown a commitment to achieving the goals that citizens consider important. The ASEAN My World survey has presented a new attitude towards access and participation in government and policy in the Southeast Asian region.

– Liyanga De Silva

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 07:30:532024-06-11 02:48:34ASEAN My World Survey Shows Shift in Global Governance
Global Poverty

Fighting Cholera in Bangladesh and Around the World

Fighting Cholera in Bangladesh and Around the Word

Vibrio cholerae, more commonly known as cholera, is a virulent bacteria that causes the body to flush all available liquids into the intestines. Those infected with cholera suffer from violent bouts of diarrhea and vomiting, and without treatment the sickness will likely be fatal. Symptoms can worsen quickly and organ failure can ensue within hours of the patient beginning to feel sick.

Cholera is treatable, and after years of research, there is now an oral cholera vaccine (OCV), which can be used to provide immediate, short-term protection from the disease. In the case of an outbreak, this vaccine can give aid groups enough time to improve access to clean water and sanitation before the disease has a chance to spread. Cholera is present in 70 countries worldwide, putting over one billion people at risk of contracting the disease.

In the 21st century, there has been a World Health Organization (WHO) initiative to stockpile OCVs in case of an outbreak. Creating the stockpile of vaccines has drastically improved the ability of aid groups to respond to crises quickly and effectively. For example, when Haiti was struck by an earthquake in 2010, there was a devastating impact on the nation’s infrastructure, greatly limiting the availability of clean drinking water. The WHO’s stockpile of vaccines was a blessing for the Haitian people, who were facing the threat of a full-scale cholera outbreak.

Cholera was first discovered in 1817, when the British East India Company sent explorers into the isolated swamps of southern Bangladesh. It was this first emergence of cholera that led to the global spread of the bacteria, which is contracted through contact with feces, usually through contaminated drinking water.

Bangladesh has been the epicenter of the fight against cholera since the emergence of the disease, and in 1960 the United States government founded the Cholera Research Laboratory in Dhaka, Bangladesh. This facility has since been renamed the International Center for Diarrheal Disease Research (ICDDR, B) and has been credited by the WHO as having saved the lives of 50 million Bangladeshi citizens suffering from cholera or diarrhea-related illness.

The ICDDR, B treats 220,000 patients a year, most of whom recover within a few days (young children are at higher risk and tend to require longer treatment). Patients at this facility lie in “cholera cots,” which is a euphemistic way to describe a cot with a hole in the center and a bucket underneath.

The ICDDR, B is leading the fight against cholera in Bangladesh and around the world. The Gavi Vaccine Alliance, in cooperation with the WHO, recently shipped 900,000 doses of OCV to Bangladesh to prevent the spread of cholera in refugee camps and among the general population. The task of stopping cholera in Bangladesh is now in the hands of the international community. The possibility of eradicating cholera in Bangladesh is closer than ever, and soon this disease may cease to exist as a constantly looming threat to the most vulnerable people on the planet.

– Tyler Troped

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 07:30:362020-06-22 20:16:01Fighting Cholera in Bangladesh and Around the World
Global Poverty

Fighting Increases in the Saint Lucia Poverty Rate

Saint Lucia Poverty Rate

Globally, there are 103 countries that exist in the middle of the range between great prosperity and extreme poverty. Middle-income countries face the challenges of not being entrenched in extreme poverty but still dealing with issues surrounding poverty. Saint Lucia is an example of a country that has achieved middle-income status, yet has stagnated over the past few years.

Saint Lucia, which belonged to the British until 1979, sits in the waters of the Caribbean and is home to around 170,000 people. Saint Lucia’s GDP hovers at approximately $2 billion and its gross national product per capita is over $7,000. After the financial crisis of 2008, Saint Lucia‘s economy lagged during the latter half of the 2000s.

As a result, unemployment in the past few years has increased to 25%, with youth unemployment increasing to 15%. Saint Lucia has a mid-level Human Development Index, meaning that its quality of life has increased slightly, to a rank of 92 out of 188 countries. In accordance with the unemployment rate, the poverty rate was around 35% in 1995, but has declined since.

By looking at the Saint Lucian economy, it becomes easier to understand the Saint Lucia poverty rate. Saint Lucia has a primarily agricultural economy and it mainly exports bananas, mangos, coconuts and various vegetables. The banana industry was quite successful in the 1990s; however, the industry has weakened. Banana farmers have faced stiff competition from neighboring countries as well as foreign markets. The weakening of this sector has led to a slight increase in poverty.

Government Efforts at Poverty Reduction

The government has tried to tackle the Saint Lucia poverty rate by introducing policies to alleviate the burden of households in the country. The Saint Lucia Social Protection Policy was introduced in 2015 in order to strengthen social programs in Saint Lucia, as well as create a conditional cash transfer program that helps households obtain appropriate funds to survive.

With its friendly policies towards foreign investors, the government has also encouraged foreign investment and tourism throughout the country. The country hosts numerous “free zones” which allow private firms to operate outside of legislative boundaries. These areas can provide another source of employment for the population.

The island nation has a strong tourism industry; nearly 60% of jobs center around tourism and hospitality. This is similar to much of the Caribbean, and Saint Lucia is no exception. Natural disasters can decreases revenues from tourism, making Saint Lucia’s economy very weather-dependent.

While the Saint Lucia poverty rate serves as an important indicator, the growth of the tourism industry also plays a large role in understanding economic growth in Saint Lucia. Saint Lucia’s economic growth has helped increase its quality of life and the well-being of its citizens, but more government involvement could increase its numbers even more. Overall, developments in Saint Lucia have helped move along development globally.

– Selasi Amoani

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 07:30:282024-05-29 22:27:37Fighting Increases in the Saint Lucia Poverty Rate
Disease, Global Poverty, Health

Preventing Tobacco Use in Impoverished Countries

Tobacco Use in Impoverished Countries

Tobacco is one of the world’s most preventable causes of disease. Preventing tobacco use in impoverished countries is important because tobacco use causes many diseases and about half of tobacco users end up dying from it. In recent years, the World Health Organization (WHO) discovered that about 80% of tobacco users live in low- and middle-income countries.

Before, the citizens in those countries would and could not spend their money on tobacco because it was not necessary. Tobacco is considered a luxury. But as they earn more money and incomes increase in their countries, they can afford to spend their money on tobacco.

As impoverished countries begin to get out of the lower classes of income, tobacco companies begin to target these countries. They sell and advertise tobacco without many restrictions, as the countries have often not yet put regulations in place. Because of that, the citizens of these countries end up buying tobacco and facing the consequences of its use. However, preventing tobacco use in impoverished countries through restrictions can have dramatic effects.

One of the best examples of this is Honduras. Between the years 2000 and 2015. The World Bank reported that smoking prevalence in adult males decreased by 30%. The World Bank also noted that Honduras is a low-middle income country, the target area for tobacco companies. So why has tobacco usage decreased in Honduras?

To put it simply, they have begun to put restrictions on tobacco. According to The Tobacco Atlas, Honduras has many rigorous regulations regarding tobacco. For example, many of Honduras’s public areas do not allow smoking. Universities, restaurants and all other indoor public spaces are smoke-free. They have also limited the number of television channels on which tobacco can be advertised. Additionally, Honduras has a 21% excise tax on cigarette prices. Because Honduras has these restrictions, their smoking rate has decreased by 30%.

The positive impacts of these restrictions on tobacco advertisement and use in Honduras are that fewer people are buying tobacco because of the added expense of taxes and fewer people are being exposed to tobacco in the first place. The laws that limit where people can smoke help to prevent people from smoking in indoor public spaces and prevent nonsmokers from being exposed to cigarette smoke.

Preventing tobacco use in impoverished countries requires many different strategies. Taxes, advertisement restrictions and other policies work together to lower tobacco usage. Low-middle income countries need to implement these policies to help protect their citizens. Implementing proper restrictions on tobacco is important to the health of these countries.

– Daniel Borjas

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 07:30:142020-06-22 20:41:03Preventing Tobacco Use in Impoverished Countries
Global Poverty

How to Help People in Nauru: Aid for Asylum Seekers

How to Help People in Nauru: Aid for Asylum Seekers

Nauru is the smallest republic in the world. The island located in the South Pacific has just 10,000 citizens. It has two main income sources: phosphate mines, which have been exploited over the years, and a detention camp that has become home to hundreds of refugees that tried to find asylum in Australia.

The process is simple: asylum seekers who attempt to reach Australia by boat are sent directly to Nauru‘s detention camp. Recently, several publications have denounced the violence and the lack of human rights protections that the refugees experience in the camp. How to help people in Nauru has turned into a two-pronged topic, one for the asylum seekers and one for the Nauruans.

The MV Tampa Policy

The refugee landscape in Nauru was shaped by Australia, one of the most developed countries in the world. In 2001, after a freighter with 400 Afghan Hazara refugees was refused entry into Australian territory, Nauru became an offshore detention center.

That event led the Australian government to create a public policy called MV Tampa. In brief, this policy states that no person who arrives in the country by boat seeking asylum should settle in Australia. Instead, they are sent to Nauru or to Papua New Guinea in exchange for monetary aid.

That problem was resolved in 2007, when most of the refugees found accommodation in other countries. But in 2012, the issue arose again, when a number of news articles published information about the terrible conditions that refugees experienced in the camp. Since then, more refugees have been sent to the island.

The United Nations addressed the crisis in Nauru in 2016. “We are extremely concerned about the serious allegations of violence, sexual assault, degrading treatment and self-harm contained in more than 1,000 incident reports from offshore processing centres on Nauru, many of which reportedly involved children,” said Ravina Shamdasani, spokesperson for the Office of the U.N. High Commissioner for Human Rights.

Good News for Refugees

This September, good news traveled to Nauru: about 50 refugees were accepted for resettlement in the United States. In addition, diverse organizations also support the island refugees’ cause. How to help people in Nauru has become a question that has found some answers.

After several reports detailing the human rights violations against refugees in Nauru, Amnesty International and Human Rights Watch pushed to provide aid to asylum seekers. One important action they took last year was to force international Health and Medical Services to provide healthcare to the children and women in the camp. In addition, they fought to end the violence and sexual harassment taking place there. The United Nations High Commissioner for Refugees also demanded the closure of the offshore processing facility and called for the immediate transfer of refugees out of the detention camp.

Local organizations like Refugee Council of Australia and Asylum Seeker Resource Centre are working to bring refugees better living conditions. In addition to assisting with health, legal, and education aid for the asylum seekers, these foundations have also developed a job training program for the refugees, a project that has empowered people in the detention camp. If you have wondered how to help people in Nauru, you can donate money to these organizations.

However, on the island, Nauruans face an elevated unemployment rate. According to the U.N., 23% of people are unemployed, a number directly related to the imminent extinction of the phosphate mines. It is expected that extraction of the mineral will be able to continue for only 30 more years.

How to help people in Nauru, or how to help refugees on the island and the people of the island, is a complex question involving various nations, but organizations efforts are getting significant results. The next months will be crucial in the resolution of the refugee crisis.

– Dario Ledesma

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 07:30:042024-06-11 02:48:33How to Help People in Nauru: Aid for Asylum Seekers
Global Poverty

What are the Causes of Poverty in Kiribati?

Kiribati Tourism

Kiribati is an island country scattered over the vast Pacific Ocean. The people believe in a very simple way of life, peace and harmony. Their traditional dances are a visual delight and a unique expression of their culture. The economy of Kiribati depends mostly on fishing, cutting copra (dried coconut kernels) and agriculture. In the more urban South Tarawa, land and fishing resources are almost completely depleted and there is a serious lack of job opportunities.

According to the World Bank, approximately 22% of the population lived below the basic needs poverty line between 2019 and 2020 and the number is higher in South Tarawa. Female-headed households are more vulnerable to poverty and one-third of children in Kiribati are from households living in poverty. The unemployment rate in Kiribati was estimated at 11% in 2020. Factors contributing to poverty in Kiribati include a lack of skilled workers, weak infrastructure and its remote location away from international markets.

Causes of Poverty

These eight issues sum up the causes of poverty in Kiribati:

  1. Employment opportunities in Kiribati are scarce. Only 48.1% of the 72,300 working-age population are participating in the labor force and nearly half of its youth population is not in employment, training or education.
  2. Loss of traditional skills among the youth, who are not as ready as their predecessors to live in the hardships that plague rural life.
  3. Internal migration to South Tarawa is increasing, which has caused overcrowding, poor health and sanitation problems. According to the country’s 2005 Census, only 49% of people living in South Tarawa were born there.
  4. Degradation of natural resources due to overutilization. This results in changes in climatic conditions that are bound to destroy the fragile ecosystem on which people depend for their subsistence.
  5. Gender inequality: women have a lower status and lack any decision-making powers. There is also a stigma against people with disabilities.
  6. High debts incurred from informal loan providers give rise to social abuse.
  7. Population growth is one of the most important causes of poverty in Kiribati, as family planning is shunned by the Catholic Church as well as Kiribati society in general.
  8. Kiribati depends on imports for most of its food supplies, making the country vulnerable to price changes. Even a household that does not identify itself as living in poverty struggles with poor diet and inadequate nutrition.

Efforts by the Government of Kiribati

The informal, traditional care system characteristic of the Kiribati way of life is disintegrating and remittances from seamen are falling. However, the government has shown its commitment to fighting against the causes of poverty in Kiribati through specific programs aimed at promoting equity:

  1. Primary and junior secondary education are free.
  2. Most health services are provided for free through health clinics.
  3. The Elderly Fund is a non-contributory pension scheme that pays monthly payments to people aged more than 65.
  4. The Copra Fund Subsidy helps maintain the production level, discourages migration and guarantees a minimum purchase price from the government.
  5. The Kiribati Provident Fund (KPF) for formal sector employees. The initiative has a member’s loan scheme that allows members to borrow part of the KPF fund and return it with interest.
  6. The Import Levy Fund subsidizes the cost of transportation to maintain prices at the same level.
  7. A price control ordinance caps prices on basic commodities.
  8. Water and electricity are subsidized for households in South Tarawa.

To combat poverty in Kiribati, all efforts have to be focused on creating direct employment and making the population more employable. The government needs to make major investments in its infrastructure. Also, the growth of private sector industries is very important for Kiribati to become self-sufficient. According to the Department of Foreign Affairs and Trade, these efforts, along with a progressive social policy, are Kiribati’s best chance to fight poverty.

– Tripti Sinha

Photo: eTurboNews
Updated: May 27, 2024

October 19, 2017
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 Thelwell2017-10-19 01:30:412024-05-27 13:02:28What are the Causes of Poverty in Kiribati?
Global Poverty

How to Help People in Mongolia

How to Help People in Mongolia

How to help people in Mongolia? Over 27 years after the revolution that would lead Mongolia to a democratic form of government, the country faces social and economic issues that have yet to be resolved. Mongolia’s current poverty issues are mostly connected to its climate and natural disasters such as severe snow storms over the winter and droughts during the summer. The characteristic nomadic way of living is slowly fading because of how animals, as well as their owners, are gravely affected by such climate conditions.

As a country whose economy relies on agriculture and cattle raising, such natural impacts destroy Mongolia’s economy from the root. Thus, Mongolia’s poverty is higher in rural areas than in major cities.

The Red Cross has been successfully helping Mongolia’s population during the “dzud,” a natural disaster seen only in Mongolia that is distinguished by its severe low temperatures. 2010 was the culminating point, when eight million animals were killed by the natural phenomenon.

By working hand in hand with families within the affected communities, the Red Cross has provided supplies, shelter, physical and emotional support throughout 17 different provinces across Mongolia.

Ways to Help People in Mongolia

But the different ways of how to help people in Mongolia encompass more than the effects of extreme weather, and therefore have to be tackled with a variety of concepts and strategies.

The United Nations has been working with Mongolia and its citizens to develop an integrated national system as well as macroeconomic plans, which were previously lacking. These strategies have decreased unemployment and reduced poverty due to their economic impact in the country.

The organization People in Need have been working with the country of Mongolia for decades. The NGO ensures access to healthcare for habitants in remote locations, distributes food around the country and helps rebuild rural areas after harsh weather events, among other forms of aid.

How to help people in Mongolia is a question with a simple answer. Creating and spreading awareness is key, and the companies mentioned above and many more are successfully doing this every day. There is hope for Mongolia.

– Paula Gibson

Photo: Flickr

October 19, 2017
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 Thelwell2017-10-19 01:30:402024-06-05 23:48:47How to Help People in Mongolia
Global Poverty

What are the Causes of Poverty in Suriname?

Causes of Poverty in Suriname

The smallest country in South America, Suriname is one of the world’s poorest countries, with more than 20% of its population living below the poverty line. While the country has seen some economic growth in recent years, its tumultuous political history explains many of the current causes of poverty in Suriname.

Ending the 1996 Adjustment Program

Having been a Dutch colony for several centuries, Suriname’s relationship with the Netherlands is complicated. For a long time after its independence, it relied on Dutch aid to propel its economy; however, relations deteriorated in the late ’90s and in 2014, Suriname was dropped as a recipient of Dutch development aid.

The government of Jules Wijdenbosch ended Suriname’s structural adjustment program in 1996 in an attempt to make taxation more equitable for the country’s large, poor population. As a result, tax revenues fell and the government was unable to implement an alternative. Mining, construction and service sectors declined and, combined with increased government spending, a bloated civil service and reduced foreign aid, the country faced a massive fiscal deficit, estimated at around 11% of the gross domestic product (GDP).

Eventually, this led to a long period of inflation, where consumer prices skyrocketed and it took the average Surinamese citizen more than two years to register a business. The causes of poverty in Suriname began with Dutch colonization and continue to suffer from structural shortcomings and poor governance, as is common with many postcolonial nations in the global South.

Strained Relations

Suriname and the Netherlands maintained a strained relationship after Desi Bouterse’s military government rose to power. In 1999, Bouterse was convicted on a number of drug and corruption charges in the Netherlands but was re-elected as the president of Suriname in 2010. Under his regime, the nation’s political climate became saturated with ethnic polarization and corruption.

Economic Diversification

Once Dutch aid stopped, Suriname’s economy became more diversified and independent. Bauxite is the primary source of revenue, as are agricultural exports and oil and gold extraction. These improvements are a double-edged sword since the environmental fallout of such extraction is incredible. They have also led to a spike in forced child labor, with more children being recruited into the mining industry.

According to the United States (U.S.) Department of Labor, “Children in Suriname are subjected to the worst forms of child labor.” Consequently, health problems and malnutrition have increased and high poverty rates continue to run rampant.

Moving Ahead

Almost 80% of Suriname’s landmass is untouched rainforest and protected reserves, which have attracted many tourists over the years. With a rise in ecotourism and diversification of exports, the potential for Suriname’s economy to improve is high.

Additionally, many local and international organizations, such as Humanium, are working to provide educational services and health facilities, particularly to children in need. A number of groups focus on empowerment and legal advocacy to bring about grassroots change.

Finally, with an increase in foreign investment and local change to tackle corruption, some of the problems faced by the Surinamese can be addressed.

– Paroma Soni

Photo: Flickr
Updated: May 29, 2024

October 19, 2017
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 Thelwell2017-10-19 01:30:322024-05-29 03:55:19What are the Causes of Poverty in Suriname?
Economy, Global Poverty

Causes of Poverty in Sao Tome and Principe

Causes of Poverty in Sao Tome and Principe

The most recent survey on the causes of poverty in Sao Tome and Principe, an island nation off the western coast of Africa, dates back to 1995. It showed that over 40% of the population was living below the poverty line, and 33% were living in extreme poverty.

Unfortunately, there is little household information about Sao Tome and Principe, but a decline in the nation’s per capita income through 1997 and difficult social conditions led to the increase in poverty since then. Specifically, fluctuations in the world’s cocoa prices triggered such conditions and have caused an influx of migration to urban areas.

In spite of this, its rank of 142 out of 188 in the United Nations’ Development Programme Human Development Index is relatively good compared to other Western African countries. This mostly stems from foreign investment in health and education between 1975 and 1985, but this aid slowed with economic instability in the 1990s.

This country struggles to develop largely due to its low income, which stems from a lack of assets and means of production. Without the ability to export, Sao Tome and Principe struggles to resolve its economic instability. Without tools or proper infrastructure, agriculture as an industry is unable to generate income.

Despite this, since 1990, Sao Tome and Principe’s Human Development Index rating has gone up from .454 to .574, which is an increase of about 26.4%. Progress in different areas has been seen, as the life expectancy has gone up by 4.8 years, as well as mean years of schooling increased by 2.4 years and expected years of schooling increased by 3.8 years. Sao Tome and Principe’s GNI per capita also increased by 55.6% since 1990.

Sao Tome and Principe is still below the average level of HDI rating of .631, but above the average of .523 of sub-Saharan African countries. One area it must work on is its gender inequality rating, as only 30.8% of adult women have received a secondary level of education. Further improvement in some of these areas will help limit some of the causes of poverty in Sao Tome and Principe.

– Tucker Hallowell

Photo: Flickr

October 19, 2017
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 Project2017-10-19 01:30:252020-06-23 14:41:17Causes of Poverty in Sao Tome and Principe
Global Poverty

B Lab Uses Businesses as Forces for Good

B Lab Uses Businesses as Forces for Good

The Sept. 1, 2017 passage of HB3488 adds Texas to the list of 33 states with official benefit corporation legislation. B Lab, a nonprofit that certifies for-profit corporations as B (beneficial) Corporations, lobbies states to change regulations surrounding company profits. Successful passage of this newest legislation signifies the growing strength of the B Corporation movement.

B Lab aims to create beneficial social change through for-profit businesses. The nonprofit provides B Corporation certifications to businesses that pass a rigorous assessment that asks about everything from environmental impact to employee benefits. Companies that score high enough on the assessment then must amend their articles of incorporation to consider the interests of employees, the community and the environment.

As of 2014, over 1,000 companies spanning over 30 countries and 60 industries are B Certified. Some of the larger companies to become B Corporations are Etsy, Ben & Jerry’s and Patagonia.

The certification allows businesses to market themselves as socially responsible to customers and investors. B Lab still works to drive profits at B Corporations — the aim of the initiative is to show that beneficial corporations can be just as profitable as their competitors. B Certificates separate companies that actually do good from companies that simply market themselves as socially conscious.

B Lab has created the Global Impact Investment Rating System (GIIRS) to assess the relative social impact of corporations worldwide. The rating system is overseen by an independent board of experts and regulators to maintain neutrality.

In the U.S., B Lab has encountered some difficulty expanding B Certifications to all states. Laws pertaining to corporate profits vary from state to state. Some states rule that corporations are obligated to prioritize profits over all else in order to maximize revenue earned by shareholders. This rule means B Corporations cannot operate in these states, since B Lab requires companies to change their articles of incorporation to equally prioritize social responsibility and profit. Therefore, B Lab campaigns for changes to corporate laws on the state level. Currently, 33 states allow B Corporations and an additional six have pending legislation.

B Lab’s influence extends past U.S. borders. Roshan, a cellphone service provider in Afghanistan with 6.5 million subscribers, is an example of a B Corporation that benefits a developing country. The company challenges Afghanistan’s gender norms — 20% of the corporation’s labor force and 17% of its senior management team are women.

Additionally, Roshan has invested $700 million in infrastructure and additional millions in community development projects like well-building and the formation of computer learning centers. Through these investments, Roshan has created 30,000 jobs in Afghanistan.

Roshan’s focus on community development is not purely altruistic. The company’s investments add to its customer base by creating revenue sources for more citizens. For example, Roshan initiated a program to teach women how to fix mobile phones. Today, the proliferation of secondhand mobile phones has expanded Roshan’s customer base.

B Lab’s mobilization of businesses as forces for good has the potential to positively impact impoverished communities. By utilizing the private sector as a vehicle for social change, B Lab proves that corporate profits and community wealth are not mutually exclusive.

– Katherine Parks

Photo: Flickr

October 18, 2017
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 Project2017-10-18 07:30:512024-05-29 22:27:34B Lab Uses Businesses as Forces for Good
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  • Innovative Solutions to Poverty
  • Global Poverty & Aid FAQ’s

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  • 30 Ways to Help
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