Archive for category: Global Poverty

Key articles and information on global poverty.

African Farmers Face Failed Seasons

In a new report released by the Alliance for a Green Revolution in Africa, African farmers, small-scale farmers in particular, are facing serious risks from climate change.

Accounting for approximately 80 percent of farmers in Africa, small-scale farmers are at risk especially due to their small plots of land and lack of resources, hampering their ability to develop effective and reliable irrigation systems. With insufficient labor and resources, these farmers have low input and low-yields, resulting in essentially subsistence level agriculture.

Released at the African Green Revolution Forum, which drew approximately 1,000 delegates including heads of state and government, scientists and business leaders, the report highlighted the consequences of the changing climate of the continent, both in the short and long term.

The report estimates that climate change could increase the number of malnourished from the current 223 million to 355 million by 2050, a 40 percent increase.

The variation in climate, such as prolonged droughts or torrential downpours, has introduced the concept of “failed seasons;” growing seasons that are particularly hampered by the effects of climate change. Increased temperatures have already plagued farmers and average temperatures are expected to continue to rise, with a 1.5 to 2.5°C increase expected by 2050.

Changing climate conditions also has the potential to lower mineral concentrations such as iron and zinc in crops, aggravating the existent problem of nutrient deficiency in Africa.

For some basic crops, the conditions have already become too extreme to tolerate. In East and Central Africa where beans are grown, the effects of climate change could reduce its current seven million hectares by 25 to 80 percent. Land in West Africa and the Sahel suitable for growing bananas could also see a drop of eight and 25 percent respectively.

With food production difficult even now, climate variations threaten to exacerbate the situation further with intense food shocks and cement a perpetual cycle of rural poverty.

Such extreme effects have already begun to take place. Parts of Angola can no longer be used for agriculture after a prolonged three year period of little rainfall and drought.

To adjust to the almost inevitable effects of climate change, the report recommends small-scale farmers adopt a number of ‘climate-smart’ techniques and policies.

Dr. Ameyaw, director of strategy monitoring and evaluation for AGRA, stressed the “efficient use of water—groundwater, surface water and rainwater” in a system that is 98 percent reliant on rainfall.

Included among these climate-smart investments are improved soil and water management, utilizing new crop varieties and improved efficiency through mechanization.

Furthermore, a shift in culture toward sustainability is encouraged. Developing stronger land rights, for women in particular; improving information systems; investing in research and encouraging the preservation of biodiversity are all potential areas of expansion that would help improve the situation.

The authors of the report also emphasize other trends to be concerned about such as rapid population growth and urbanization, which both can affect development and growth.

– William Ying

Sources: Africa Agriculture Status Report 2014, BBC, Phys.org, AllAfrica 1, AllAfrica 2
Sources: MSU

Nigerian Startups Number One

When startups in Africa are discussed, people often generalize the continent as a whole. But it seems that Nigerian startups in particular are making big strides toward being the future of business on the continent.  A slew of investments and ideas suggest the country will be the most prominent for some time.

In April 2014, the Nigerian economy added 89 percent to the GDP literally overnight. After adjusting its figures, the country is now worth $510 billion, easily surpassing the now number two South Africa at $370 billion.

The country did not have to squeeze the numbers, per se, but simply updated figures that were two decades old. The economy had been growing steadily at 7 percent per year but this year, the appropriate values to the banking industry and the burgeoning film scene were added, among other areas.

Despite all the other numerous problems the country faces—like ranking 153 out of 187 on the U.N. Human Development Index—its position as number one should prove to be a much needed boon.

And so far it has, at least for the startups that are quickly appearing in the country.

In the technology sector, incubation center Co-Creation Hub has made $500,000 available in order to fund ideas and experimentation. Startups will be given between $10,000 and $25,000 to clarify ideas and work out issues with business models.

Other companies are excited about the future of tech in Nigeria as well. Microsoft Corporation will sponsor the 2014 DEMO Africa Event, which is scheduled to take place in late September. The event will feature the top 40 startups from the country.

One company featuring at this convention will be Integrated Medics. In a country that needs to advance its healthcare as quickly as possible, it is certainly a highlight that a medical care startup will be featured. The startup plans and promises to deliver smooth and mostly automated healthcare features.

The outlook for the Nigerian economy overall is positive. As the country continues to grow (it’s expected to surpass the United States in total population by 2050), it must also continue to rely on both small and big business to keep its place as the number one African economy.

– Andrew Rywak

Sources: The Economist, This Day Live, The Tribune 1, htxt.africa, The Tribune 2

Poverty and Crime Linked

“Poverty is the parent of crime,” wrote Aristotle. The philosopher’s words have echoed for thousands of years and it is hard to deny that the two are not intrinsically linked. But recent studies have ripped the statement into an open debate and the genealogy has been brought into question.

The most pertinent study was conducted in 2011, after the height of conflicts in Afghanistan and Congo, while violence was on the rise in countries like Côte D’Ivoire and Libya. But the World Bank’s flagship publication, World Development Report, argued that violence is in fact the primary cause of poverty.

The two African nations Burundi and Burkino Faso are used as anecdotal reference that supports the raw data. The two had similar growth rates prior to 1990, when Burundi erupted into civil war. Now, Burkino Faso is 250 percent wealthier.

The research indicates that poor African countries are not in a “poverty trap” so much as they are in a violence trap. A poverty trap suggests that workmen, like farmers, are hesitant to take care of their crops because the insufficient infrastructure means the roads are unable to support large cargo. In theory, wealthier countries can help by pumping aid to build such a road.

While such construction is noble and beneficial to all involved parties, it is only the first step in creating orderly society. Even with roads and a lack of faith in the government, rebel stop and seizures and organized crime will make the farmer all the more hesitant to take the road even when it is there.

Still, data also backs the notion that these countries are violent because they are poor, as well. The World Bank report asked why young people joined gangs and rebel movements. Around 40 percent said unemployment was the primary factor.

What this means, generally, is that in addition to aid that prevents the poverty trap, violence is an issue that needs to be addressed. The Millennium Development Goals, for example, have not been reached by any violent country. And the fact that the MDGs do not address justice and security demonstrates that further steps that are necessary.

One tested manner of reducing violence is restoring faith in government. Ghana’s peace deal in 2003 and Nigeria’s credible cabinet appointments of recent years launched periods of relative peace. It is not enough that the people believe elected officials are not corrupt: the officials must also deliver results. New jobs must be created quickly.

Reports such as these show that while reaching MDGs is important, aid must be refocused and have a human aspect if they want to be more successful.

– Andrew Rywak

Sources: The Economist, The Wall Street Journal, Fundamental Finance
 Photo: Ace Showbiz

The Union in a Modern Economy

Since the middle of the 19th century, when the industrial revolution first made significant impacts on social and economic life in the United States, labor unions have been respected and efficacious models of worker unification. That being said, the industrial revolution is old news. The digital revolution, also known as the third industrial revolution, has taken hold of modern lives. Jobs have become more specific and machines have replaced human workers in certain unskilled positions.

So what role does the union play in today’s economy? To understand, it is necessary to know how unions have always worked.

Unions have, since their inception, been organizations of workers dedicated to maintaining and, if need be, improving working conditions. They run a bit like mini-democracies: elected officials make decisions on behalf of the workers who elect them. Also like most democracies, workers pay for membership. They do this with tax-esque, regular payments, much of which go to those of the union’s staff members who aren’t volunteers.

The goals of unions are simple: to better working conditions. This mission can take many shapes, including pushing for increases in minimum wage and in worker productivity (often done by administering training programs), as well as trade restrictions, such as government-imposed tariffs and quotas. Tariffs are special taxes on imported or exported goods. Quotas are limits on the amount of a certain good that can be imported or exported.

Although there are basic goals common amongst most, if not all, unions, there are several varieties. These organizations represent, after all, different quantities and qualities of professional workers. As a small sampling, unions represent mechanics, teachers, factory workers, office workers, actors, musicians, police officers, construction workers, janitors, writers, doctors, engineers, plumbers and pharmacists, as well as countless others.

Local unions are comprised of local workers, usually bound by sector and region, not employer. They typically receive a charter from a national or international union before forming. There are over 60 national and international unions across the United States and Canada, representing millions of professionals.

Of these local and broad coalitions, there are slightly more specific trade and industrial unions. Trade unions represent workers who work a specific trade, such as those represented by The American Federation of Labor and Congress of Industrial Organizations. Industrial unions, alternatively, represent workers who work a specific industry, including those represented by The United Auto Workers.

During the first industrial revolution, unions began to form alongside companies operating within steel mills, textile factories, mines and other heavily regulated environments. Because of this, unions are often associated with the “old economy,” but the new economy is, of course, where unions must work today.

As small and medium sized businesses outside of manufacturing become more prevalent, unions become increasingly general and must represent a much wider range of employees. This makes collective bargaining, a technique unions employ to facilitate negotiations between employers and employees, a more difficult task than it used to be. Naturally, since there are more managers with whom to negotiate and more potential hangups to avoid, the process may be elongated. Settlements may become compromised as unions juggle an array of workers.

These effects, however, are mostly speculative. In general, the union has been and continues to be, at least for today, an effective and empowering tool workers use and need.

– Adam Kaminski

Sources: Investopedia, Union Plus
Photo: The Century Foundation

New Standards for Poverty Line in India

India’s Economic Advisory Council enacted its highest standard for poverty this summer. The new standards will place 30 percent of the nation’s population below the poverty line. This adds an extra eight percent to the estimate under previous standards.

By the new benchmarks, a rural family of five living on 4,860 rupees (or about $80) a month or an urban family on 7,035 rupees (at 2011-12 prices) is considered poor.

Despite encompassing more citizens under the poverty line in India, these new standards reflect progress. This year, after recent elections and a new government, marks the first time the nation has taken on major economic reform in two decades.

Over the past 20 years, the Indian economy has witnessed rapid changes. The United Nations reported that the Indian economy is expected to grow at a rate of 5.6 percent this year. It is on track to surpass these expectations, already having expanded its economy by 5.7 percent by August. The manufacturing and mining industries have accounted for this growth, according to the Central Statistics Office.

These changes will better acknowledge and help address the actual needs of the Indian population, argue many economists.

This new definition puts India’s standards above the average in the developing world. The most popular definition of poverty is the World Bank’s $1.25 a day standard. Some economists argue that this low standard of poverty undermines the struggles of many legitimately poor families. A low bar for poverty often minimizes legitimate needs for poor families that are above the bar.

This perpetuates many myths about poverty. For example, many believe food is the biggest need for India’s poor. However, health care, drinking water and proper sanitation make up 40 percent of the poor’s biggest needs, according to the Director of McKinsey Global Institute Richard Dobbs.

“The kinds of contrasts we possess, no other country has,” said Himanshu, an economist at Jawaharlal Nehru University in Delhi, in an interview with the Washington Post. “And in a democracy, these things need to be questioned. That’s what the poverty lines do.”

— Ellie Sennett

Sources: Business Standard, The New York Times, The World Bank, The Wall Street Journal, Economic Times (India), Huffington Post

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Top Charities to Donate to for Hunger

donate to for hunger
The United Nations Food and Agriculture Organization has estimated that around 870 million people of the 7.1 billion people in the world –  that is, one in eight – were suffering from undernourishment between 2010 and 2012. Almost all the hungry people, 852 million to be exact, live in developing countries.

There are 16 million people undernourished in developed countries. Thankfully the number of undernourished people has decreased almost 30 percent in Asia and the Pacific, from 739 million to 563 million.

The decline in hungry people could be accredited to charities that make it their mission to end world hunger. One charity helping alleviate hunger for example treated 42,000 severely malnourished children in Democratic Republic of Congo in 2012. This charity is called Action Against Hunger.

Action Against Hunger has 30 years of expertise in specific areas like conflict, natural disaster and chronic food insecurity. It runs life-saving programs in over 40 countries benefiting seven million people each year.

In America, the number one charity to donate to for hunger is Feeding America. Formerly known as America’s Second Harvest, it provides food assistance to more than 25 million low-income people facing hunger in the United States, including more than nine million children and almost three million seniors. Feeding America services all 50 states with more than 200 food banks.

While considering which charity to donate to, a third charity to consider is the Bread for the World Institute. The Institute is a lot like The Borgen Project in that it aims to educate its advocacy network, opinion leaders, policy makers and the public about hunger in the United States and abroad. One of the primary goals of the Institute is to end hunger in the United States by 2030.

Thanks to donations and hardworking volunteers, world hunger has been cut in half; however, hunger still kills more people every year than AIDS, malaria and tuberculosis combined. For example, Asia currently has the most people on its continent that are hungry, making up about two thirds of the area. In order to stay on track and end hunger by 2030, donations are imperative and any of the charities listed above are rapidly working to make sure the money donated is used in the most efficient way.

– Brooke Smith

Sources: about.com, Bread for the World Institute, Action Against the World, WFP
Photo: flickr

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Good360: a Supporter of Charities

good360
Founded in 1983, Good360 has been the nonprofit leader in product philanthropy since its start. Good360, formally known as Gifts In Kind until changing its name in 2011, quickly escalated and became the fastest growing and most efficient charity in the country according to The Nonprofit Times.

The basis of Good360 is it helps companies donate new, nonperishables like apparel, books, toys, personal care products, office and school supplies, and computers along with many other items. Only three years in, product donations valued at almost $44 million that had been distributed to qualified nonprofit organizations.

Because of some of the great work Good360 has done, it has been recognized by both the Committee Encouraging Corporate Philanthropy and Forbes for its success in helping companies drive their bottom lines while doing a social good at the same time.

Over time Good360 created something called Retail Donation Partner Program. This program is what allows local charities to partner with retail stores in their communities. This benefits not only the charities but the local retail stores as well in donating their surplus.

For example, the Washington Nationals baseball franchise  partnered with Good360 and collected donated toothbrushes for people impacted by the 2010 earthquake in Haiti.

With all these things that the company does and oversees there needed to be a set way of doing things. There are three ways to distribute product donations to the needy: warehoused donations, local retail donations and one-time local donations.

To understand fully how great the company is, it’s important to know how these processes work. The warehouse donations process created an efficient means of maintaining large quantities of product that are then broken up into smaller portions that are easier for charities to distribute.

The local retail donations  allow retailers to directly donate to charities in their community. This is beneficial because it helps smaller charities get products straight from local businesses on a continuing basis. This is also good because it creates strong connections between the retailers and charities.

The last way that Good360 distributes product donations is through one-time local donations. This basically entails finding homes quickly that need donations within the local community. This is beneficial because it helps reduce waste and companies don’t need to set up a certain amount that they will always donate each month. It can be an item that they have excess of and, rather than throwing it out, that product can go to a good home. When this happens, local charities are notified of the opportunities for donations in their community and then orders can be filled on a first-come, first-serve basis.

Good360 made it on the Forbes list of the 50 largest charities in the United States. Ranking at number 36, Forbes also gave it 100 percent in the fundraising efficiency category. Only seven of the 50 charities received a 100 percent in the same category.

– Brooke Smith

Sources: Good360, Forbes
Photo: flickr

Innovation and Affordability: d.light Solar

The company d.light manufactures and distributes solar lights and other products to people around the world. Currently, 300 people work to complete the goals of d.light: give reliable energy to 100 million people by 2020. Aside from providing power, d.light notes that reliable power also contributes to better performance in school and better overall safety and health.

Nearly one and a half billion people around the world live without access to electricity. For a fifth of the population, the light switch that most people use every night does not exist. Most people without access to power live in regions with the highest rate of poverty: Southern Asia and Sub-Saharan Africa.

Many without access to power use kerosene lamps. But these are polluting and harmful to the people who use them. Burning one for four hours a day for one year results in 100 kg of carbon dioxide emissions, which contributes to climate change.

For individuals, using kerosene lamps can cause severe respiratory problems. If these health problems do not cause death, they severely limit access to jobs, which limits income and continues the cycle of poverty. As a demonstration of the importance of consistent electricity, it has been shown that household businesses with better lighting have a 30 percent increase in income, simply because it allows people to work at night.

The kerosene lamps are also extremely cost inefficient. LED lights produce almost 100 times more wattage than kerosene lamps. But without other options available, a significant portion of individual or family income goes toward kerosene lamps. Merely limiting access to modern technology results in dangerous, and possibly fatal consequences to people in poverty.

In 2004, Sam Goldman witnessed the effect of kerosene lamps when one burned his neighbor in Benin. This personal contact with the effects of limited access to electricity inspired Goldman to educate himself on sustainable and affordable innovation. During this time, he met Ned Tozun. Together, they created d.light, “an international social enterprise serving households without access to reliable electricity.”

d.light provides products such as study lamps, family lanterns and light systems with a phone charging capability. The products are powered through solar energy and can provide light for up to 15 hours. Indicating that the company knows its consumers, the products are versatile and can withstand the effects of weather or other uncontrollable factors.

As of July 31, d.light has empowered over 37 million lives, given solar lighting to almost 10 million children and saved over $1 billion in energy expenses. For each consumer, buying a d.light product can save approximately $150 over 5 years. Moreover, d.light positively impacted the environment by reducing carbon emissions by nearly 3 million tons.

Witnessing the dangerous affects of limited access to energy, two individuals created innovative yet accessible methods to address a problem associated with poverty. The innovation of d.light helps to alleviate both a cause and a consequence of an enormous issue. The benefits of d.light Solar evidences the significant potential impact of ensuring that people in poverty have access to innovative products.

– Tara Wilson

Sources: CNN, Acumen, d.light Solar
Photo: Discovery

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Fast Facts on Hunger in Africa

hunger_in_africa
The first of the U.N. Millennium Development Goals is that of eradicating extreme poverty and hunger. But according to the recently released 2014 Human Development Report, there are still 1.2 billion people living on $1.25 a day or less with little access to adequate food — and a vast majority of Africans fall into this group.

Here are six facts to know about hunger in Africa:

1. Although Africa is the second largest continent and covers close to one fifth of the Earth’s land area, the 54 countries that comprise the continent cannot feed their people. This is not due to a lack of food but instead a lack of agricultural infrastructure, raised food prices, drought and conflict.

2. In the most recent estimate (2010), approximately 239 million people in sub-Saharan Africa were hungry. Out of those, 30 percent were undernourished.

3. There are many mouths to feed. African population growth expanded from 221 million in 1950 to 1 billion in 2009 and is expected to be 4 billion in the year 2100. With such a high population, it is nearly impossible to produce enough food for everyone.

4. Poverty is a cause of hunger, hunger is a cause of poverty. Living under the poverty line makes it extremely difficult to buy food. Without food and with hunger, a person has lack of energy and can develop health problems which mean lost days at work and more medical needs.

5. According to the International Food Policy Research Institute, 160 million African children are malnourished, and one in five children will never reach 5 years of age.

6. Vitamin and mineral deficiencies are a major cause of death in women and children. These deficiencies are often referred to as “hidden hunger.” To combat this problem, UNICEF reported that “The WHO, the New Economic Partnership for African Development, the Development Bank of Southern Africa, the Micronutrient Initiative  and the Global Alliance for Improved Nutrition” have ensured that two-thirds of the sub-Saharan population now have access to iodized salt and children have been give vitamin A supplements.

While these facts are startling and seem unconquerable, they do not need to be. By moving to action, Africa can put an end to its hunger crisis. Moves to action may include donation to a charity or NGOs, such as The Borgen Project and contacting your state senator and asking them to support increase aid in U.S. foreign policy to end hunger in Africa.

– Kori Withers

Sources: UNICEF, NPR, United Nations, World Issues 360, Hunger Notes, United Nations Development Program
Photo: Flickr

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Hunger in Comoros with Hope on the Rise

With high rates of hunger, infant mortality and population increase, it’s easy to see why the World Hunger Index ranked Comoros third on the list of the world’s hungriest nations. It is just one of nineteen nations still labeled as “alarming” or “extremely alarming” on the Global Hunger Index, leaving 870 million without food.

The Poverty Reduction and Growth Strategy Paper produced by the officials of Comoros stated that, “information on the economic environment supports the assumption that the socio-economic situation is deteriorating and that poverty is on the rise.”

Much of this social upheaval has been attributed to what can only be described as an unstable government. Comoros has been the site of 20 coups and attempted coups since its independence in 1975. The newest elected leader, Ikililou Dhoinine, a native born to the islands, took office in May 2011. He looks to spearhead the reduction of poverty by pledging “to stop at nothing in the fight against corruption.” Despite this hopeful claim, the people of Comoros are among the poorest in Africa and heavily dependent on foreign aid.

But others have joined the goals of Dhoinine. Dominic MacSorley, Chief Executive of Concern stated that, “firefighting with emergency aid is not enough.” Comoros conducted its own comprehensive household survey and found that many locals agreed that the way to bolster the economy was to show “importance of recovery in the private sector, particularly in the agro-foods area, to ensure a robust economic growth and achieve a significant reduction in poverty.”

Engagement Communautaire pour le Développement Durable, or the ECDD, has been working toward just that by creating a model of community landscape management integrating improved livelihoods with natural resource management.

Agroecology and Market Gardening were two of the techniques implemented. Agroecology refers to the process of conserving the land while simultaneously respecting ecological principles and learning from nature. For example, learning how the rainforest continually recycles nutrients back into the soil. Market Gardening is the process of growing vegetables to take to market for a profit.

ECDD’s project slogan, ‘Komori ya lao na meso,’ means ‘The Comoros of today and tomorrow.’ It is plain to see that this slogan was embodied at the very hearts of the ECDD efforts. These practices have set a new precedence in the hopeful fight against hunger in Comoros and the world.

– Frederick Wood II

Sources: International Food Policy Research Institute, ECDD Comoros 1, ECDD Comoros 2, BBC, trust.org, International Monetary Fund
Photo: Flickr