Archive for category: Global Poverty

Key articles and information on global poverty.

Chocolate De-Commoditization With Certified Sustainable Cocoa

Certified Sustainable Cocoa
When shopping for basic necessities such as milk, bread or snacks, it is common to look at the price tag. Some might buy the most expensive item, but most will probably buy the cheapest. Either way, both consumers have probably questioned why brands vary in pricing, even though it is basically the same item. When people are constantly buying the cheapest item, this is called commoditization. Commoditization can have negative consequences for the farmers in developing nations producing these commodities.

“When we pay less than $2 for a chocolate bar, we are paying for the systemic poverty of millions of families,” said Emily Stone during a presentation to the United Nations. Stone is the CEO of Uncommon Cacao. This company and 16 others spoke at the U.S. Institute of Peace to discuss ideas on meeting the Sustainable Development Goals of 2030; more specifically, the “Decent Work and Economic Growth” goal.

Uncommon Cacao is a company that specializes in cacao, which is the basis for chocolate. The company gives farmers in developing nations access to a steady market that provides fair wages and working conditions. Uncommon Cacao began its work in 2010, building Maya Mountain Cacao in Belize to create meaningful market access for smallholder cacao farmers.

The company’s argument is that cheap food equals cheap labor, which is why they are advocating for de-commoditization.

The Washington Times reports that the company is working to de-commoditize the cacao supply chain by training farmers in higher-quality production. They plan to buy cacao directly from thousands of farmers and pay them higher prices for better quality chocolate. This system produces what is known as Certified Sustainable Cocoa.

Thankfully, the demand for Certified Sustainable Cocoa is on the rise. Hershey’s says it’s committed to using only 100% sustainable cocoa by the year 2020, which means impoverished farmers working these cocoa plants will likely see a rise in pay very soon. Uncommon Cacao already has the ear of the United Nations; hopefully, they can influence the 16 other companies present at the U.S. Institute of Peace.

The hope is that Certified Sustainable Cocoa will become a norm for chocolate in the future. With pressure from activists and workers’ rights organizations coming down on companies like Hershey, sustainable cocoa will ensure that farmers begin to see a way out of poverty, finally being able to earn more than a chocolate bar’s worth of pay each day.

– Vicente Vera

Photo: Flickr

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Causes of Poverty in the Dominican Republic

Causes of Poverty in the Dominican Republic
According to the World Bank, the Dominican Republic has experienced one of the most remarkable growth seasons in the Caribbean in the last 25 years. Official estimates say that the number of Dominicans living in poverty dropped by almost six percent from 2014 to 2016. Although the country has made strides in the business front, they still have much to accomplish to stay competitive with other nations in the region.

A country is not just poor randomly, meaning factors contribute to the poverty rates in the country. Below are some of the causes of poverty in the Dominican Republic.

Increasing Population
The population of the country has been steadily increasing for decades.  It has risen by two million people since 2000 and is currently over 10.6 million inhabitants. A rising population also raises living standards, can make jobs harder to find, and, in some cases, can keep young women from finishing their education.

Improper Documentation
Dominicans of Haitian descent are the poorest in the country and usually live close to the Haiti-Dominican Republic border. Low incomes and poor living conditions keep them in a cycle of poverty, and social exclusion does not help the most vulnerable families. Dominicans of Haitian descent are usually undocumented or migrant sugar cane plantation workers, which means they do not receive aid from social assistance programs.

Ignored Agricultural Sector
In the past decade, the Dominican Republic government has focused on building the tourism and service industries, virtually ignoring the agriculture sector of the economy. Without government investment in the small farms so that they can provide for their families, many farmers have to look for jobs elsewhere. Farming technologies have begun to make their way to rural communities, which will potentially increase productivity.

Natural Disasters
Recent research has found that natural disasters (such as drought, extreme rainfall and flooding) are and will be the biggest factors in keeping people in poverty.

Because most developing governments invest money in responding to disasters as opposed to protecting citizens from the inevitable, the poorest citizens lose more when that disaster hits. Having policies that highlight disaster prevention can potentially save the country millions of dollars and give the poor more of a chance to survive.

These are just some of the causes of poverty in the Dominican Republic. Understanding the poverty of a country is an ongoing process, so staying updated is a way to ensure you know how to help a country when it needs it. The causes of poverty in the Dominican Republic can change with the economy, and hopefully, this beautiful country will continue moving toward stability.

– Emily Arnold

Photo: Flickr

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Six Things to Know About Poverty in Pakistan

Poverty in Pakistan
Poverty is a global affliction affecting numerous countries in the developing world. Pakistan, a country in South Asia, is home to millions of people who live in extreme poverty. Poverty in Pakistan is on track to decrease, but there is still work to be done.

With approximately 185 million citizens, Pakistan ranks 147th out of 188 countries in the Human Development Index (HDI). Reports on poverty in Pakistan show that as much as 40% of the population–roughly the size of the population of Florida, California and New York combined–live beneath the poverty line.

The Multidimensional Poverty Index (MPI) report by the Pakistan Ministry of Planning, Development and Reform in June 2016 shows that 39% of Pakistanis live in multidimensional poverty. The MPI methodology, developed by UNDP and the Oxford Poverty and Human Development Initiative in 2010, uses a broader concept of poverty by reflecting people’s deprivations related to health, education and standard of living in addition to income and wealth.

 

1.  Regional and Provincial Disparities in Poverty in Pakistan

The report states that national poverty rates in Pakistan fell from 55% to 39% from 2004 to 2015. This is a strong decline; however, development across different regions of the country is uneven. Poverty in urban areas is at 9.3% as compared to 54.6% in rural areas. Similarly, great disparities exist across provinces, with the highest rates of poverty in the Federally Administered Tribal Areas (FATA) and Balochistan. The MPI report states that “over two-thirds of people in FATA (73%) and Balochistan (71%) live in multidimensional poverty. Poverty in Khyber Pakhtunkhwa stands at 49%, Gilgit-Baltistan and Sindh at 43%, Punjab at 31% and Azad Jammu and Kashmir at 25%.”

Some districts such as Qilla Abdullah, Harnai and Barkhan in Balochistan have more than 90% poverty compared to Islamabad, Karachi and Lahore, in which less than 10% of residents live in multidimensional poverty. The report also found that the decrease in multidimensional poverty in Balochistan was the slowest while poverty levels had actually increased there and in Sindh province in the past decade.

 

2. Corruption in Pakistan

Despite being the second-largest economy in South Asia, development is limited by entrenched poverty in Pakistan, social inequality, lack of access to social services and extreme corruption. The 2016 Corruption Perceptions Index by Transparency International ranks Pakistan 116th globally. Corruption in Pakistan is not a new phenomenon. Recent Panama leaks involving the Pakistani Prime Minister Nawaz Sharif’s three children are just one example: they owned offshore companies and assets not shown on his family’s wealth statement. This and other cases of corruption by political and military elites have made it impossible to alleviate widespread poverty.

 

3. Population Boom

Burgeoning population growth is another major issue that weighs down Pakistan’s socio-economic development. According to some reports, in the past 10 to15 years, the population of Pakistan has grown by more than 40 million, making it the sixth most populous country in the world. Another report found that Pakistan’s population increases by 1.8% per year. By that rate, it is feared that, if the nightmarish growth goes unchecked, the country’s population will be 245 million by 2030.

 

4. Development and Conflict

Pakistan is caught between the United States’ War on Terrorism in Afghanistan and an increasingly unstable relationship with India. Tackling poverty is important because economic instability and a lack of development can only lead to conflict and violence, domestically and regionally. In the past two decades, Pakistan has seen increasing violence at the hands of militant jihadists and Baloch insurgents. Rather than bettering the lives of common people by introducing broad-based socio-economic reforms, the Pakistani state uses excessive military force to “resolve” issues in the country’s northern and southwestern regions. Unending conflicts are another reason why it is difficult for development to take place.

 

5. Disproportionate Defense Spending

Most importantly, instead of allocating sufficient funds to address both acute and long-standing poverty, the country spends the largest amount of national expenditures on defense. A May 2017 report showed that “Pakistan’s defense expenditure in the next financial year (2017-18) will be around seven percent higher than it was in the outgoing year to Rs920.2 billion (USD$8.65 billion).” It was Rs841 billion (USD$7.9 billion) for the year 2016-2017. In contrast, Pakistan spends only 2.6% of its GDP on education, which is the lowest in South Asia.

 

6. Consequences of Poverty in Pakistan

Grinding poverty and lack of development fuel child labor, illiteracy, religious extremism and endless conflicts on massive scales. The Gross National Income per capita is only $5,031. Life expectancy in Pakistanis at 66.4 years and the expected years of schooling is miserably low at 8.1 years. These figures are among the lowest in the world.

The good news is that poverty in Pakistan decreased by 15 percent in the past decade, but, given the grim lows overall, this figure is less than encouraging. In order to alleviate poverty, policymakers need to focus on achieving the U.N. Sustainable Development Goals (SDGs) by 2030. Although it is a big challenge for an underdeveloped country like Pakistan, meeting the SDGs is important since they provide the best possible integrated way for inclusive growth, peace and development.

Finally, policymakers should also focus on addressing the poverty of opportunity. The poverty of income is a result of the poverty of opportunity. Poverty in Pakistan is a multidimensional problem requiring multidimensional solutions.

– Aslam Kakar

Photo: Google

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Fair Trade and its Impacts in Developing Communities

Fair Trade
Fair Trade is a global movement committed to paying fair prices in trade, impacting producers in developing countries. The concept came as a response to global poverty levels and focuses on the marketing of products and development trade. It also raises awareness of trade injustice in trade structures and advocates changes to favor equitable trade. Overall, the movement organizes producers and production and provides services to the producers.

From the 1970s to the 1980s, Fair Trade products were only sold to consumers in specified shops. In 1997, Fairtrade Labelling International was created, which expanded the movement into other countries including North America.

Fairtrade Labelling International set international standards for products in certifying production trade. When a product meets these standards, the company identifies the product with a label. Purchasing products with the Fair Trade label can improve a community. The funds from Fair Trade impact communities with social, economic and environmental development projects.

Fair Trade impacts the building of sustainable businesses by demanding fair wages and treatment. Workers can socialize with buyers while gaining a living wage. Both the employed and farmers may work efficiently with this system. More companies are investing in this movement, while it also ensures safe working conditions and prevents forced child labor.

Investing companies include Ben & Jerry’s ice cream and Rishi Tea in China. Ben & Jerry’s was the first ice cream company to join the movement. With its popularity, it set an example for many other businesses to follow. Rishi Tea is based in China and makes organic teas out of some of the oldest gardens in the world. The company supports education, provides scholarship programs and builds hospitals and roads in secluded areas.

Fair Trade uses the money that may have been put toward high-priced goods to build schools instead. Since fair trade helps stabilize incomes, many families can keep their children in school. It provides supplies, scholarship programs and healthy meals. Fair Trade enables education for even the most outlying communities.

Fair Trade impacts workers, farmers and families. Farmers can receive market-based tools to prevent them from falling into poverty and may learn environmentally sustainable practices. Workers and families gain access to doctors, treatments and nutrition. These benefits enable people to help themselves as well as others in their communities.

Fair Trade is a model for alleviating global poverty. Many companies and markets are investing, impacting developing communities. From building sustainable businesses to providing education, the movement is life-changing for those living in poor communities around the world.

– Brandi Gomez

Photo: Flickr

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Turkey’s Tourism Industry Slowly Gains Back Visitors

Turkey's Tourism Industry
Turkey’s tourism industry is vital to the country’s economy. After declines in the past two years, Turkey now reports an increased number of foreign visitors again.

Domestic and international political tensions dramatically intensified the downward trend. Numerous terrorist attacks in late 2015 and throughout 2016, which were partly attributed to Kurdish militants and partly to ISIS, claimed hundreds of lives, including many foreigners.

In July 2016, a bloody military coup against the government of Turkish President Tayyip Erdogan was quelled but led to the declaration of a state of emergency by the government that persists until this day. The situation has been used to justify an extensive crackdown on civil servants and civil society, including the closure of media outlets and non-governmental organizations and the detention of journalists, members of the parliament and human rights activists. The violence and political instability left tourists worried about their safety in Turkey.

The neglect of human rights and democratic values has also chipped away from the image of the country’s leader in Europe – an unfavorable image only further deteriorated by the “war of words” he has been waging with EU leaders. Recently, Erdogan has repeatedly made negative headlines throughout Europe, not only with his domestic policies but also with his hostility toward several members of the European Union, whom he accused of Nazism and fascism, for instance.

Visitor numbers from Russia also saw a steep decline in 2016. A diplomatic crisis had emerged between the countries, after Turkey shot down a Russian military jet close to the Syrian border in November 2015. The Russian government reacted by banning charter flights to Turkey and barring tour companies from selling deals to Turkey. Prior to the crisis, Russians had made up the second-largest group of visitors to the country, generating $34 billion in revenue in 2014 by themselves.

According to the Istanbul Culture and Tourism Directorate, the numerous crises amounted to a total drop of 25.9% of visitors in 2016 compared to the previous year, amounting to losses of billions of dollars in the industry, which is vital to the country’s economy: a report from the World Travel & Tourism Council stated that the travel and tourism sectors had generated 12% of Turkey’s 2014 GDP, based on its direct, indirect and induced GDP impact.

However, last year, many beds, beaches and restaurants stayed empty during the summer months, which in turn forced many businesses to drastically lower their prices. This tourism crisis threatens the livelihood of the eight percent of the workforce employed in Turkey’s tourism industry, as well as other businesses dependent on foreign consumers.

After the Russian government’s crackdown on travel to Turkey has ended, Russian tourists now flock back into the country. In April 2017, visitor numbers finally increased again compared to April 2016, but they still remained lower than pre-crisis levels.

Additionally, Turkish hoteliers hope to make up for some of their losses with domestic tourism, but visitors from within Turkey tend to spend less than tourists from Europe or the U.S. The German Tagesschau quotes a hotel operator in saying: “It is not only about increasing the number of visitors and filling up hotels. If the room rates remain low, our problems remain, too.” Despite recently increasing revenues, a challenging time still lies ahead for Turkey’s tourism industry.

– Lena Riebl

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The Most Common Diseases in Indonesia

Common Diseases in Indonesia
Indonesia is considered a hotspot for various diseases, due to factors such as tropical climate, biodiversity and frequent interaction between humans and animals. The CIA World Factbook states that some of the most common diseases in Indonesia, with a “very high” degree of risk, are as follows:

Dengue fever
Dengue is a vector-borne disease transmitted through the bite of infected female mosquitoes, which can spread more quickly in an environment that lacks reliable sanitation or produces garbage regularly. A recent study reported in PLOS Neglected Tropical Diseases found that more than half of all children in Indonesia’s urban areas were infected with dengue by the age of five, and over 80% of them have been infected with the dengue virus at least once by age 10. Typically, the outbreak of the disease surges every three to four years, with the most recent surge having occurred at the beginning of 2016.

The Indonesian Ministry of Health reported that 71,668 cases of dengue fever were recorded in 2014, with 641 of these cases ending in death. Although the number of cases on the national level seems to be on the decline, the number has been increasing in several areas, including North Sumatra, Riau, West Kalimantan, North Kalimantan, North Sulawesi, Bali and Jakarta.

Malaria
Another one of the most common diseases in Indonesia is malaria. While Jakarta, Surabaya, Bali and other large cities are relatively free from the risk of malaria, other areas in the country are still vulnerable to the disease. According to the data from the Ministry of Health, malaria is still rampant in the provinces of Papua, East Nusa Tenggara, Maluku, North Maluku and West Papua. An Indonesian health official from the Maluku province, whose local health department has been carrying out efforts to eradicate the disease, stated that eliminating the disease would require maintaining a healthy environment, killing mosquito larva through fogging, regular blood tests and the use of mosquito nets.

Bacterial diarrhea
Diarrhea was once a leading cause of death for children under the age of five in Indonesia, accounting for almost 25% of child mortality. Although efforts to combat mortality from the disease have decreased the death rates to approximately 2.5 per 1,000, the incidence of bacteria has remained constant at 25 to 30 million per year in children under the age of five. The fact that the number of outbreaks has not changed much implies the need for more innovative solutions to deal with the disease.

These three are among the most common diseases in Indonesia. Recently, the Indonesian government has been carrying out various policies to achieve the goal of attaining universal water and sanitation access by 2019, which, if successful, could help the country make significant progress in fighting these diseases.

 – Minh Joo Yi

Photo: Flickr

The High Cost of Living in Hong Kong

Cost of Living in Hong Kong
Just like its skyscrapers, the cost of living in Hong Kong is among the highest anywhere in the world. In a Mercer survey published in June 2017, Hong Kong was named the second most expensive city globally for expatriates to live and first among developed nations.

Hong Kong is a destination city for businesses and professionals alike, boasting over 4,000 individuals worth over $30 million each. Many businesses have found Hong Kong to be one of the most agreeable cities to reside in due to the low 16.5% corporate tax rate.

For the less fortunate, however, the cost of living in Hong Kong is confining– literally.

With a monthly wage of $2,652, the average Hong Kong citizen spends most of their earnings on rent alone. The smallest apartments in Hong Kong cost around $1,000 per month, with more spacious units ranging from $2,000-2,500 before utilities. Many Hong Kong residents work longer hours and split small flats into sleeping cubicles in order to save on rent.

With so much disposable income being eaten up by housing costs, many residents face the very real problem of food insecurity. Going out to restaurants has become a luxury, as many people must now rely on charitable donations and government assistance to eat.

For Hong Kong’s poorest, those living on less than $328 a month, the cost of rent in Hong Kong makes living in the city unsustainable. Over 30% of the city’s elderly population lives in poverty, while the wealthiest families make over 44 times what the average citizen makes.

Economists have urged the government of Hong Kong to institute universal incomes and pensions to prevent the wealth gap from widening. Efforts to address the growing wealth inequality in the country must be made with urgency for the sake of Hong Kong’s struggling citizens.

– Thomas James Anania

Photo: Pixabay

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New UN Report on Environmentally Sustainable Development

Environmentally-Sustainable Development
On July 14, 2017, the United Nations Environment Programme (UNEP) published a new report addressing global initiatives towards environmentally sustainable development. The Green Finance Progress Report assesses the progress made by the G20 and other countries in creating policies and financial reforms that are sustainable. Despite many countries falling short in the amounts of capital they invest in sustainable development, the UNEP highlighted many promising institutional changes that have taken place in recent years.

In 2015, the U.N. Conference on Trade and Development found that developing countries lacked investments by approximately $2.5 trillion in implementing environmentally sustainable development initiatives. While this financial goal is still largely unmet, the report noted that the majority of G20 countries have undertaken significant projects and proposals that suggest positive steps towards green finance. Thus, financial shortcomings aside, environmentally sustainable development is becoming a profitable and high-priority investment for many countries.

According to the report, both public and private sectors have shown great improvements in laying the groundwork for green finance plans. With global initiatives in place such as the Paris Agreement and the 2030 Agenda for Sustainable Development, climate change has become of major importance in terms of global cooperation. This has greatly accelerated recently, with more developments in green finance taking place in the last year than any one-year period in history. Most notably, the number of green bonds, or money issued towards environmental projects, increased by 100 percent in 2016.

The plans underway are primarily large-scale, ambitious overhauls that will require careful and swift mobilization in upcoming years. According to the UNEP report, the majority of changes in the financial market have included developments to “reallocate capital, improve risk management, enhance transparency and clarify responsibilities of financial institutions.” The challenge is now to set these plans in motion and continue incentivizing projects towards environmentally sustainable development.

Achieving these goals requires global leaders to continue diverting funds toward sustainable development. This presents a huge opportunity for private market innovation, as the report emphasizes the need for businesses that, “support our sustainable development objectives and create commercially viable green businesses for decades to come.”

According to the UNEP, there are many ways businesses can meet investors’ increasing preference for sustainable projects. Primarily, the report suggests that providing investors with clear, accessible data on environmental impact is extremely important. Negative environmental impact is no longer a risk that can be overlooked, and a shift towards green finance is imperative in addressing climate change.

– Julia Morrison

Photo: Flickr

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Why is Kosovo Poor, and How Are the Poor Being Helped?

Why Is Kosovo Poor
With approximately 30 percent of the population living in poverty, it is no surprise that Kosovo was ranked as the third poorest European country. Nearly 10 percent of the population lives in extreme poverty, and there is a 57.7 percent unemployment rate among people ages 15 to 24. With all of this shocking information, one might be compelled to ask: why is Kosovo poor?

One significant reason is the distribution of the government budget. While the government spent a whopping 210.2 million euros on roads in 2016, only 180.5 million euros went toward health and welfare. By prioritizing road development, Kosovars were left to pay for most of their medical needs. With the weight of their medical problems resting on them, many Kosovars remain in poverty.

The Kosovo government also spends an insufficient amount on education and science: only about 16 percent of the 2016 budget went toward these. This being noted, Kosovo’s youth received some of the lowest scores on the PISA test in 2015. The purpose of the exam is to determine the knowledge of 15-year-old students in the broad subjects of reading, science and math.

Having a strong educational system is crucial, especially in reducing poverty. Receiving an education gives one the opportunity to acquire a better-paying job. According to the Global Partnership for Education, if every single child could at least learn basic reading skills in school, then there would be a 12 percent drop in extreme poverty worldwide. This may not seem like much, but that is equivalent to 171 million individuals, who all possess different dreams and aspirations, and the potential to fulfill them.

With all of this information, instead of asking “why is Kosovo poor?”, it is now important to ask: what is being done to help Kosovo’s poor?

With more than two-thirds of the population living in rural areas, agriculture remains an important part of Kosovo’s economy. The World Bank is offering Kosovo a loan of 20.8 million euros to assist with agricultural purposes. The World Bank also supports the Agriculture and Rural Development Project, which helps finance investments in technologies that improve agricultural production.

Although Kosovo remains highly impoverished, there has been progress made. Over a span of a decade, the country’s GDP rose from $4.83 billion to $6.65 billion. With the help of different projects, Kosovo’s high poverty rates will continue to decrease.

– Raven Rentas

Photo: Flickr

Truth About Poverty in Chile

Poverty in Chile
Chile is currently struggling with its finances and education system. A public charity called Hogar De Cristo conducted a survey concluding that 58 percent of Chileans found that a lack of opportunities and education were the leading causes of poverty in Chile.

This recognition has shown that poverty in Chile, as well as poverty in general, is multidimensional rather than solely related to a lack of money. In addition to those mentioned above, Chileans accredit their poverty to laziness, addictions, lack of state support, abandonment and disease.

 

Poverty in Chile: Facts and Figures

 

Poverty in Chile has a fairly low percentage of 14.4 percent, which is lower than the United States. However, Chile’s problem lies in the country’s high rates of income inequality: and this alone has driven around 10 percent of people into poverty.

The inequality also reverts back to the poor education systems. There are approximately 75,000 Chilean children who do not attend school. The number of uneducated closely correlates with those living in the deepest poverty.

At first glance, Chile’s economy appears stable. In fact, in 2011, Chile was even voted as the 44th country for highest human development rates by the United Nations. These rankings were achieved by collecting the national averages, meaning that this can hide the truth about the country’s inequality.

In truth, 75 percent of growth out of 8.4 percent went to the rich, and only 10 percent went to the poor. This information is not clear in reports about the nation. The world acknowledges Chile as a developed country, but only 20 percent have incomes matching those of a developed country. The rest, what is hidden, exposes the true extent of poverty in Chile.

The Chilean economy is reliant on copper prices. Chile’s GDP rises when prices go up, but this alone does not create jobs that lead to prosperity. The truth about poverty in Chile shows that the GDP growth does not always benefit the majority of people.

In order to reduce poverty in Chile, national and international education reform advocates suggest significantly increasing expenditures in education. The goal would be to produce quality institutions and in turn, reduce poverty. Some economists even suggest a change in tax rates, because the low tax rates are one main reason why inequality has not been reduced. By fixing the tax problems, Chile could solve issues like the poor education and poverty significantly.

– Katelynn Kenworthy

Photo: Pixabay