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Archive for category: Global Poverty

Key articles and information on global poverty.

Global Poverty

Why is Togo Poor?

Why is Togo PoorTogo is a relatively small sub-Saharan nation that is situated along the Gulf of Guinea with a population of approximately 7.6 million people. A 2008 UNICEF report found that 81.2 percent of Togo’s rural population lived below the poverty line, making it one of the “world’s poorest countries.”

Why is Togo poor? And what is being done to combat poverty in Togo?

Here are six factors that can help begin to answer the question “why is Togo poor?”

  1. The Central Intelligence Agency (CIA) World Factbook stated that the adult literacy rate in Togo is 63.7 percent, which makes it difficult for Togo to participate in the rapidly evolving global economy. Furthermore, young girls are often not able to attend schools because they are wedded off at a young age—and many families often have to sacrifice education in order to allocate money to food.
  2. The United Nations reported that over 100,000 people live with HIV/AIDS and nearly 68,000 children are left without families as a result—yet absent a robust healthcare system (and the appropriate resources), Togo has a difficult time responding to and controlling disease outbreaks. Life expectancy in Togo is only 65 years.
  3. There is widespread water insecurity. Only 63 percent of the Togolese people have access to sanitary water available for consumption often leading to the spread of waterborne diseases.
  4. Poor governmental infrastructure that pervades Togo often hinders foreign investment in agriculture, which accounts for a large proportion of exports. Government corruption is also prevalent which often hinders meaningful policy action and prevents democracy.
  5. Child labor and sexual exploitation prevent Togo from fostering a generation of youth that is equipped to participate in the global economy. Forty-seven percent of children between the ages of 5 and 14 are forced to work in agriculture which prevents them from getting an education.
  6. A UNICEF study found that the rate of severe malnutrition among children under the age of five exceeds 10 percent and is thus higher than the critical level determined by the World Health Organization. The same study also reported that 108 out of 1,000 children will die before their fifth birthday because of malnourishment. Inability to produce a healthy generation only serves to further answer the question “why is Togo poor?”

Despite the widespread structural poverty that pervades Togo, international organizations and non-governmental organizations have mounted an effort to alleviate poverty.

The World Bank has launched several projects in Togo focused on “macroeconomic recovery and stability, health, agriculture, education and more.”  Notably, the group has built 325 primary school classrooms and provided $26.1 million for infrastructural development in impoverished communities.

The International Monetary Fund (IMF) declared Togo a beneficiary of the Heavily Indebted Poor Countries Initiative which provides debt relief as a poverty reduction strategy. In addition, the World Food Programme has provided assistance to groups affected by natural disasters and high food prices in an effort to reverse the political and economic turmoil that Togo has been confronted with.

As demonstrated by the World Bank, IMF and WFP, meaningful foreign aid and reform must be structural if it is to produce sustainable and long-lasting results.

– Hannah Ritner

Photo: Flickr

September 25, 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 Project2017-09-25 04:30:072024-05-29 22:26:47Why is Togo Poor?
Global Poverty

Causes of Poverty in Antigua and Barbuda

Causes of Poverty in Antigua and BarbudaBoasting gorgeous beaches and pale blue water, Antigua and Barbuda is a popular hub for tourism, making it one of the most economically successful nations in the Caribbean. According to the World Travel and Tourism Council, tourism comprises 60.4 percent of Antigua and Barbuda’s GDP. Despite the influx of tourism-related wealth, 22 percent of the islands’ occupants live below the poverty line, raising the question: what are the causes of poverty in Antigua and Barbuda?

While tourism has undoubtedly boosted Antigua and Barbuda‘s economy, generating 54.3 percent of the nation’s total employment, the unique temporality of the tourism industry has left some citizens in the lurch. People working in the tourism industry have a reliable income during the tourist season. However, these individuals find themselves unemployed during the off-season and unable to afford basic necessities for parts of the year.

Demographics also play a role in the poverty status of people living in Antigua and Barbuda. Women in Antigua and Barbuda are employed in private sector and tourism jobs even more than men, and are less likely to be poverty-afflicted compared with women in other developing nations. However, single mothers shouldering the unshared financial burdens of parenthood are still exceptionally vulnerable to life below the poverty line. Poor households typically have 5.2 children, while more affluent households average only 2.8 children. Over a third of Antigua and Barbuda’s population living in food poverty is under the age of 14.

Overcrowded living situations correlate with insufficient resources, such that poor families often cannot afford to send their children to school, making these children more vulnerable to poverty in adulthood. A primary school education reduces the probability of poverty by 91 percent.

While statistics reflecting the poverty status of young people in Antigua and Barbuda may seem disheartening, UNICEF is confident that the prevalence of poverty in the nation’s younger demographic may actually help effectively aim poverty prevention efforts. By targeting families with more children, UNICEF hopes to provide aid to those who need it most. Additionally, the organization has proposed school feeding programs to provide proper nutrition to children living in food poverty.

While the causes of poverty in Antigua and Barbuda function at personal levels like employment and family size, there are also larger factors such as flawed infrastructure, which makes public facilities and social services difficult for citizens to access. Infrastructural weaknesses are particularly threatening for nations like Antigua and Barbuda, which is vulnerable to environmental catastrophes such as hurricanes.

On September 5, Hurricane Irma devastated Antigua and Barbuda. Barbuda was left in shambles, and nearly all its inhabitants have lost their homes. Prime Minister Gaston Browne immediately implored the world for aid contributions, and the Red Cross has already provided over $120,000 to support disaster relief efforts throughout the Caribbean. However, much more aid is still needed to help those who have been affected regain and rebuild their lives. Many organizations have already rallied to assist the people in need.

– Mary Efird

Photo: Flickr

September 25, 2017
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Global Poverty

FIVE CAUSES OF POVERTY IN MAURITIUS

Mauritius is a little paradise island that flourishes in its diverse culture and tradition. A closer look reveals a complex history of this archipelago — once colonized by the Dutch, French and finally, the British. Mauritius gained independence in 1968 and has since transformed itself from a low-income economy mostly dependent on agriculture and fishing to an economy thriving on industrial, financial and tourism growth. 

It is commendable that the country has achieved this in spite of many roadblocks, like its remoteness from the world market, racial inequality and high population growth. Notably, between 1977 and 2008, the Mauritius economy averaged a 4.6% gross domestic product (GDP) growth rate, thanks to the government’s sound and pragmatic development strategies.

Furthermore, less than 1% of its population lives on $2.15 a day or less, meaning extreme poverty is almost non-existent. However, several factors contribute to the persistent pockets of poverty that do exist. Here are five causes of poverty in Mauritius:

  1. The island of Rodrigues, a part of the Republic, has 40% of its population living below the poverty level. This is because the island does not form part of the tourist attractions or produce any resources to add to exports.
  2. Agriculture is a major industry in Mauritius, with about 40% of its land used for crop cultivation. However, as the focus of economic development has shifted to exports, industries and tourism, rural households that depend on agriculture as their source of income have become more vulnerable to poverty. In addition, “below‑average precipitation amounts in January and February 2021” led to reduced soil moisture, ultimately affecting production. Environmental deterioration is one of the biggest causes of low yields of agriculture.
  3. Women in rural areas are especially prone to poverty as they often have low levels of education and have not acquired professional skills. Families dependent on these women for their financial needs are at a higher risk.
  4. Modernization and industrialization boosted the economy but also led to greater income inequality. This has resulted in high indebtedness in poor households. According to the United Nations Development Programme (UNDP), the rising income inequality in Mauritius can be partly attributed to “skills shortages, high levels of youth unemployment and widening gender gaps in earnings.”
  5. The most significant cause of poverty in Mauritius is the “triple trade shock” experienced in 2005. This shock stemmed from the loss of trade preferences for textiles and sugar, alongside rising energy prices. Specifically, the end of the Multi-Fiber Agreement for textiles, reductions in the European Union’s sugar protocol prices and a sharp increase in petroleum and food prices led to a cumulative trade shock of nearly 25%. Although the government has implemented numerous reforms to address this crisis, overcoming its effects remains an ongoing process.

Solutions

In 2016, the government of Mauritius launched an ambitious reform plan called the Marshall Plan Against Poverty to eradicate poverty and exclusion. The plan sought to achieve this by collaborating with underprivileged communities and other marginalized groups to improve access to essential services such as healthcare and education, implementing social protection measures and introducing empowerment programs for women and youth. In addition, the government has established several social protection programs, such as the National Solidarity Fund, which provides financial assistance to vulnerable individuals.

– Tripti Sinha

Photo: Flickr
Updated: May 27, 2024

September 25, 2017
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Global Poverty

Czechia Poverty Rate Remains Low

Czechia Poverty RateThe Czechia poverty rate continues to rank among the lowest in the EU. At 5.9 percent, the eastern European nation, which shed its English moniker of “Czech Republic” early in 2017, beat out such neighbors as Poland, Portugal, Hungary, Italy and Spain, all of whom have rates exceeding 10 percent.

In the OECD, Czechia ranks behind only Denmark in terms of poverty rate, which measures the amount of families living below a country’s poverty line. In Czechia, that number is 10,220 crowns (about $431 USD) per individual and 21,461 crowns (about $906 USD) for families with children.

Based on population-weighted estimates drawn from household surveys, the poverty rate is not necessarily a perfect benchmark for comparison between nations. Indicators are specific to each country’s economic and social circumstances, and a variety of factors influence perception of poverty.

However, other metrics tell the same story of a robust quality of life within Czechia. Not only is the Czechia poverty rate one of the lowest, the nation’s wealth inequality outperforms other high-performing countries. Only 22 percent of Czech income is held by the wealthiest 10 percent, lower than the U.S., China, Indonesia and Chile, who have rates of 30.2, 31.4, 31.9 and 41.5 percent respectively. The Gini coefficient, which measures income inequality, is a relatively low .26 for Czechia, and unemployment lingers at an impressive 3 percent as of 2017.

Explanations for the country’s favorable economic indicators are many. Czechia has an excellent education track record, with enrollment standing at 99.75 percent. Government funds have been redirected to education over the past decade, while decreasing in other sectors such as infrastructure. Public reform following the 2008 global economic crisis saw a VAT hike and reduction of social welfare benefits, but included significant tax discounts in other sectors of the economy and pensions that nearly doubled.

Though these factors have aided in suppressing the Czechia poverty rate, conditions for the majority of employees are not necessarily as complimentary. As average Czech wages increase, they still remain substantially lower than the EU median. An average wage across industry of $23,003 USD reflects Czechia’s tough minimum wage, which remains one of the lowest among OECD nations. The country’s main source of income comes from engineering and machine-building industries, which accounts for 37.5 percent of the economy. With a popular tourist destination for a capital, services bring in around 60 percent of Czechia’s wealth.

Forecasts predict a sustained pace of economic growth but slowing rates of employment. Inflation, which jumped from 2016 to 2017, is expected to decline as debt continues to diminish post-recession. It remains to be seen whether or not the trend in Czechia’s low poverty rate will continue.

– Mikaela Krim

Photo: Google

September 25, 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 Project2017-09-25 01:30:282024-05-29 22:26:46Czechia Poverty Rate Remains Low
Global Poverty

Causes of Poverty in Malaysia

Causes of Poverty in Malaysia
Malaysia is a nation in southeast Asia with a rich history and a population of over 30 million. The nation has been one historically plagued with deep poverty; however, in recent decades, the conditions for a large swathe of its people have greatly improved. The government has undertaken a monumental effort to attempt to eradicate the causes of poverty in Malaysia and has been largely successful. Nevertheless, the country still suffers from the ills of impoverishment and plenty of work still needs to be done.

Since the Millennium Development Goals were introduced in 1990, the Malaysian government has done a lot to reduce poverty in the nation. The percentage of households living on less than $8.50 per day (the national poverty line) fell from over 50 percent in the 1960s to 1 percent currently. The Asian Development Bank claimed this to be the largest reduction among all Asian countries. Another government goal was to halve the number of people living on $1 a day by 2015, which they also successfully achieved.

The task of solving the root causes of poverty in Malaysia, however, is still far from over. Over 60 percent of the country still lives on less than $1,600 a month, and in rural areas, that number can climb up to 85 percent. Furthermore, although only about 1 percent of people currently live under the extreme poverty line, that still accounts for 300,000 people, a significant number.

The government recognizes that it still has not fully addressed the causes of poverty in Malaysia, and has laid out a road map of its future plan of action. This plan of action revolves around four main focal points.

 

Addressing the Causes of Poverty in Malaysia

 

  1. Increase the level of education among the poor. Through education, children in poor communities will have a better chance to get a high-paying job or start a business.
  2. Strengthen social safety nets, enhance collaboration with NGOs and corporations and provide empowerment programs.
  3. Ensure income is redistributed to uplift those in poverty for the bottom 40 percent.
  4. Institutionalize appropriate policies which promote economic development.

If the Malaysian government continues on the path they have been on so far and successfully addresses these goals in their plan of action, poverty and the ills it brings could be effectively eradicated in the nation once and for all.

– Alan Garcia-Ramos

Photo: Flickr

September 25, 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 Project2017-09-25 01:30:152024-05-27 23:59:41Causes of Poverty in Malaysia
Global Poverty

Tanzania to Use Zipline Drones to Deliver Medicine

Zipline Drones

The California-based company Zipline, which designs and operates drone delivery networks, will start delivering medical tools and vaccines via drones to Tanzanian clinics in 2018.

The East African country has 0.03 doctors per 1,000 people and 5,640 public health facilities for a population of over 56 million. Blood transfusions and treatments for deadly diseases like HIV are hard to come by. In 2014, the CEO of Zipline drones, Keller Rinaudo, noticed this harsh reality as he browsed a database of health emergencies. The database would collect real-time data about patients who were suffering in different regions of the country, but people would not receive aid based on this information. Rinaudo, as he states in an interview with NPR, imagined “the other half of that system — where you know a patient is having a medical emergency and can immediately send the product needed to save that person’s life.”

The ‘other half of this system’ will start in January 2018, as per a statement from the Tanzanian government. Drones will be used for on-demand delivery of vaccines, blood transfusion materials and other medication or medical tools.

A drone medical delivery system is already up and running in Rwanda, with overwhelmingly positive results and stories. Tanzania hopes for an even larger system, where 120 drones will make 2,000 deliveries a day from four distribution centers spread across the country.

Zipline has hired locals to operate both the drones and distribution centers. When a hospital or clinic requests an item, a worker will stock the products into a shoebox-like container and pack the drone, which would zip to the hospital and deliver the products by parachute. This process takes what could be an eight-hour process and cuts it down to under a half hour.

The medical future is bright for rural and impoverished communities like those in Tanzania with the help of drones. Studies have found that blood samples and lab results were safely transported between medical facilities without any change in result, except for the time they took to be transported.

Rinaudo sees the system as a win not only for his Zipline drones company, Rwanda, or Tanzania, but for medical communities across the globe. In the same interview with NPR, he says that operation teams are “phenomenally smart, ambitious and driven. They work 12 hours a day, seven days a week. They will do anything to save human lives…Rwanda showed what’s possible when you make a national commitment to expand healthcare access with drones.”

– Gabriella Paez

Photo: Flickr

September 24, 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 Project2017-09-24 01:30:522020-07-11 18:34:02Tanzania to Use Zipline Drones to Deliver Medicine
Global Poverty

Alleviation of Global Poverty a Benefit of Tourism

Alleviation of Global Poverty
After the United Nations declared 2017 the International Year of Sustainable Tourism for Development, governments worldwide have been growing their tourism industries to facilitate the alleviation of global poverty.

Year after year, the United Nations has seen an increase in money circulating in various countries’ tourism industries. However, these countries are some of the wealthiest in the world, among them the United Kingdom, United States and Germany.

The United Nations is working to increase the benefits of tourism in countries struggling with immense poverty, but it will not be easy. To accommodate tourists, a large amount of money—money that these countries do not have—will need to be spent on building and maintaining hotels, airports and other tourist amenities.

If these countries are able to build successful tourism industries, an abundance of jobs will be created and a large percentage of the profits can go directly to local communities living in poverty.

Samoa is an example of this progress. From 2005 to 2015, Samoa’s tourism industry grew from $73 million to $141 million. Samoa’s tourism industry had an impact on the alleviation of global poverty, as it ensured that visitor dollars resulted in local benefits.

Similar to Samoa, Ecuador, South Africa and Fiji are among other countries that have seen poverty relief as a benefit of expanding their tourism industries. The United Nations has played a role in the alleviation of global poverty by helping poor countries finance transport connectivity and facilitate infrastructure investment.

African countries have benefited greatly from the United Nations’ assistance with their tourism industries. Today, Africa’s tourism industries support more than 21 million jobs and have aided the alleviation of global poverty through sustainable development in struggling countries. The sustainable development seen in Africa relies on tourists making ethical travel choices. Tourists are encouraged to “go local” with food, craft purchases and tour companies when traveling in developing countries.

Tourism alone cannot end global poverty. However, if travelers, local companies and large organizations such as the United Nations continue to show their support for developing countries, the world will be one step closer to total alleviation of global poverty.

– Kassidy Tarala

Photo: Flickr

September 24, 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 Project2017-09-24 01:30:392020-07-09 18:00:09Alleviation of Global Poverty a Benefit of Tourism
Global Poverty, War and Violence

How Military Conflict and Climate Change Intersect in Mali

Climate Change

A military coup has worsened Mali’s national security, amplifying the impact climate change has had on the country and its people. Conflict erupted in northern Mali in 2012. The violence of the proceeding five years has since destroyed the nation’s land, diminishing the abilities local farmers have to grow vegetation.

Since 2012, Mali has witnessed a wave of poor harvests, pushing a food crisis upon the country. Hostile physical and environmental circumstances have forced about 475,000 people from their homes to neighboring countries, and those who remain in Mali face food shortages and security threats. With 25 percent of families moderately to severely food insecure, the United Nations Food and Agriculture Organisation (UNFAO) estimates that 270,000 people face starvation.

Two thirds of Mali is a desert or semi-desert that experiences long yearly periods of drought. Furthermore, the Sahara Desert is expanding southward at a rate of 48 km per year. Climate change has significantly decreased the amount of rainfall, dropping by 30 percent since 1998. Consequently, Mali is also suffering from water scarcity. Only three-fifths of Malians have access to safe drinking water and only about one-third have proper sanitation.

The water shortage has weakened Mali’s agricultural activities, taking an immense toll on its citizens. Agriculture employs 90 percent of the country’s rural population and 70 per cent of Mali’s entire labor force. Cotton, gold and livestock make up 80 to 90 percent of total export earnings.

The World Food Programme (WFP) has been working on generating food security, particularly between harvests. The organization built a total of 3,966 environmental assets such as ponds, dams, and canals to help alleviate Mali’s lack of water. Technical and economic assistance have been provided for local farmers, broadening Mali’s market and strengthening the agricultural sector.  WFP has also begun providing nutrition support for pregnant women, nursing mothers, underweight children and children under five suffering from chronic and moderate-to-acute malnutrition. Further assistance from organizations like WFP is necessary to lift Mali‘s people from the harsh grips of military conflict and climate change.

– Tiffany Santos

Photo: Google

September 24, 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 Project2017-09-24 01:30:322024-05-28 00:16:02How Military Conflict and Climate Change Intersect in Mali
Global Poverty

Banning TBAs: A Double-Edged Sword

In parts of the world where midwives and doctors are few and far between, traditional birth attendants (TBAs) play a critical though often controversial role in maternal healthcare. Though untrained, they function as medical leaders in their communities, sometimes delivering more babies than midwives. But as health experts reassess the functionality of untrained workers in the modern healthcare model, TBAs are at risk of being banned from assisting with births completely. Some African countries, such as Zambia and Sierra Leone, have already banned TBAs, although not without backlash. These bans have raised a very important and highly disputed question: are TBAs important or detrimental to the reduction of maternal mortality rates throughout the developing world?

TBAs, also known as traditional or community midwives, help pregnant mothers through delivery and the pre- and post-birth periods in areas where viable healthcare facilities are scarce or unreachable. They are typically older women who hold respect in their communities and often have children of their own. Unlike midwives and obstetricians, TBAs lack formal medical training and instead learn about the birthing process through oral tradition and delivery experience.

TBAs today work with mothers and their infants all over the world and are deeply rooted in the birthing cultures of many communities. TBAs are especially in demand in poor rural areas, where as few as 20 percent of births may be serviced by a skilled health worker. Much of their appeal comes from their accessibility, since TBAs offer their services at relatively low costs. TBAs are usually easier to reach than formal health professionals since they work within their communities, whereas bad roads, long distances and lack of transportation can deter women from seeking hospitalization. Women are especially unlikely to attempt the journey to a hospital if the care offered there is inadequate.

Some countries have attempted to make it easier for women to reach hospitals and receive inexpensive or free care, yet many women still seek out TBAs. This can most likely be attributed to the fear that is associated with clinics and hospitals, since many women are wary of facilities outside their communities, especially when surgery is involved. While there can be much trepidation and distrust surrounding doctors and hospitals, TBAs are well established and liked within their communities.

Mbarikit Eno of Nigeria was among the scores of pregnant women who feared hospitals when she was deciding where to deliver. “Two of my friends died in hospital during childbirth and I don’t want to die too,” Eno told the Global Health Next Generation Network in 2016. “Besides, those midwives in the hospital are very harsh; they shout at you and scold you as if you don’t know anything. They never use kind words on the woman despite the pain she experiences during labour. I know the traditional birth attendant that will deliver me. She is from within my community, she has delivered several women and they are all alive.”

Because there are both benefits and drawbacks to TBA-based care, health experts are divided on TBAs’ place in the modern healthcare model. TBA advocates claim that banning TBAs hurts mothers in disadvantaged communities, since TBAs are sometimes the only health workers available in these areas. This negative effect was demonstrated by a 2007 TBA ban in Malawi, which actually caused Malawi’s maternal mortality rate to rise. The country has since reversed the ban.

Experts also propose training and monitoring TBAs to ensure safe birthing practices. Organizations like the World Health Organization (WHO) and United Nations Children’s Fund (UNICEF) have taken steps in this direction by increasing regulations on TBAs in recent years to integrate them into the modern healthcare model. These groups have implemented programs to improve TBA education and forge stronger links between health professionals and TBAs, among other measures.

On the other hand, many researchers argue that TBAs should be eliminated from today’s health system completely. Proponents of the TBA ban claim that TBAs are “untrainable” and too set in their ways to adapt to new healthcare methods. They also warn that TBAs cannot address the main causes of maternal death, such as eclampsia and hemorrhage, and that their often-characteristic illiteracy makes it difficult to keep records.

“It stands to reason that decisions must be made with an eye to the future and not just with a mind for the present,” said former Finnish obstetrician and gynecologist Kelsey A. Harrison in an article for the British Medical Journal. “Traditional birth attendants have no place in this future.”

As modern medicine progresses and new medical technologies enter the mainstream, health experts will need to further re-evaluate the role of more traditional workers in today’s healthcare model. While the best course of action currently remains unclear, banning TBAs and other unskilled workers is only a temporary fix for the low utilization of hospitals and clinics in developing areas. Until the underlying causes that send women to TBAs in the first place are addressed, women around the world will continue to turn to TBAs instead of trained health professionals.

– Sabine Poux

Photo: Flickr

September 24, 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 Thelwell2017-09-24 01:30:272024-05-29 22:26:45Banning TBAs: A Double-Edged Sword
Global Poverty

Why Is Mongolia Poor?

Why Is Mongolia Poor
Between one third and one half of Mongolia’s population currently lives in poverty. Since the nation ended their Soviet-style communist regime in 1990, many impoverished Mongolians have been wondering why the advantages of capitalism have not yet reached them. After nearly three decades of reform, why is Mongolia poor?

Since the turn of the 21st century, Mongolia has fostered great development. Income and school enrollment have risen, while sanitary concerns and maternal and child mortality have declined. However, the nation’s success has not been equal in all areas and has not had the desired impact on alleviating poverty.

 

Why is Mongolia Poor? Investments and Inequality

 

While economic growth is necessary for human development, human development is not necessary for economic growth. Between 2009 and 2013, Mongolia’s GDP rapidly increased by $8 billion – primarily a result of foreign investment in the country’s natural resources. Despite this flow of capital, there has not been a satisfactory increase in more and better job opportunities; thus, impoverished families are not able to lift themselves out of poverty and share in the new wealth.

Not only are not enough jobs being created, but most lower-class Mongolians are unqualified or under-educated for the advantageous jobs that are present. Furthermore, adequate job opportunities are not present where poor Mongolians live, so they must resort to low-productivity work that only provides enough income to sustain their livelihoods rather than improve them. In turn, the nation’s wealthy get richer while the impoverished remain poor.

Since 2013, Mongolia’s economic growth has slowed, with its GDP dropping over $1 billion in three years. The economic slowdown, while not drastic, raises concern for the country’s most vulnerable and how the downturn will affect them, considering the previous upturn was not doing much to help them.

To answer and address the question of why Mongolia is poor, the nation must focus on equal and quality access to jobs and education. Fortunately, Mongolia has the tools to succeed and is currently implementing strategies such as the National Plan of Action for Decent Work and the National Employment Promotion Programme. Investing in education will also be crucial for increasing the population’s employability and potential for the generations to come.

Mongolia’s rapid development is worth celebrating, but to ensure the nation’s long term success the country must work toward closing the gap between the rich and the poor and evenly dispersing their development. Only when the entire population has the capability to succeed will Mongolia reach its full economic potential.

– Catherine Fredette

Photo: Flickr

September 24, 2017
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