Archive for category: Global Poverty

Key articles and information on global poverty.

Major League Baseball & Dominican Republic

On Oct. 25, 1971, a fifth child was born to Dominicans Paolino Martinez, a janitor, and Leopoldina Martinez, a laundress—a couple who had to raise their children in a dwelling that had a tin roof and dirt floors. Forty years and nearly $150 million in career earnings later, that child would return to his hometown Manoguayabo to build schools, roads, homes and churches through a charity he founded.

The story of Pedro Martinez, one of the greatest pitchers in baseball’s history, spurs innumerable poor Dominican youths to play the game. Poverty and poor economic prospects motivates them to put in the requisite hours of practice, and a large baseball infrastructure, which includes training academies developed by Major League teams, validates these youths’ dreams of wealth.

Or maybe the numbers alone are validation.

An article in the International Business Times reported the average salary of major leaguers to be $3.4 million. Compare that to the annual income of a Dominican worker: $5,130.

Of the 224 foreigners playing for Major League Baseball in 2014, 83 hail from the Dominican Republic. The DR beat historical baseball powerhouses Cuba (19), Puerto Rico (11) and Venezuela (59) for the title of top overseas producer of major leaguers.

It is unclear if this success will translate into significant poverty reduction back in the DR.

Certainly, the DR’s economy has been growing in the recent past. If one ignores the relatively minor economic crisis of 2003 – “minor” in terms of impact on GDP – GDP growth has been impressive in past years: “9.5 percent in 2005, 10.7 percent in 2006 and 8 percent in 2007,” according to one study.

However, that same study concluded the MLB’s impact on this economic growth was marginal compared to the effect of remittances and the development of a tourist economy, though the construction of baseball academies does always create jobs.

In any case, poverty has remained a persistent problem in the DR despite the country’s economic growth. 40.9 percent of the population is at or below the national poverty line. Half of all children are impoverished. The tourist economy has failed to create jobs for the masses of poor, with unemployment at 15 percent.

Thus, the MLB will continue to be a source of hope for many Dominicans. To Dominican players, a signing bonus of $5,000-$8,000 on its own is worth the time investment. Should their career end shortly after receiving such a bonus, at least they received enough money to support their families or to invest in a business enterprise.

And, of course, each player might just be the next Pedro Martinez.

Unfortunately, the hope that such possibilities inspire is intermixed with desperation. In their hunger to secure a better life for themselves and for their families, many Dominican players have turned to using steroids, which are relatively easy to procure in the DR. Drug usage is seen by many young Dominicans as a way to “cheat the system,” and wherever desperation exists, people are likely to try to cheat.

“Buscones” are another source of controversy in Dominican baseball. These player agents find talent, develop it and take a cut of any signing bonuses. The players that make it to the MLB mostly express their gratitude to these agents, but buscones also “have been accused of corruption, embezzlement and feeding steroid drugs to young prospects,” according to an article by Palash Ghosh at the International Business Times.

One cannot conclude from all of this that the MLB will have much to do with the eradication of poverty in the DR, but one also cannot deny the organization’s potential to do both good and bad in the country.

– Ryan Yanke

Sources: George Mason University, MLB, The World Bank, Forbes, International Business Times, Baseball Reference, Boston Globe, SABR, Huffington Post
Photo: Latin Trends

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Outlook of Latin American Markets

Save a few exceptions, outlook for the Latin American fiscal market is bleak. The region as a whole will grow only by two percent and is marked by countries like Peru, where growth has been exceptionally slow, and even more notably by the recent default in Argentina.

This was Argentina’s first default in 13 years, but the eighth default in its history. When the country defaulted in 2001, the government issued negotiable promissory notes that the country later decided not to honor. When Argentina renegotiated to pay back its debt at 30 cents on the dollar, over 90 percent of the bondholders agreed.

The remaining investors did not yield, and were led by Elliot Management to find a solution and be repaid. In a strange turn of events, the Wall Street firm, with only a few hundred employees, managed to attain control of an Argentine naval vessel. It should be noted that no physical force was used, and the original crew was allowed to remain aboard.

Despite the theatricality and the poverty held within Buenos Aires, the nations of Colombia and Peru offer interesting insight into the future of prosperous Latin American countries, even if they show what not to do.

In the short term, Colombia is succeeding. The first reason for its success has been called “winning the commodity lottery.” Colombia’s main exports, oil and coal, have held steady prices in recent years. However, that is hardly replicable. When copper and gold staggered, so did Peru, as the two materials account for 50 percent of exported goods.

Colombia has reformed as well. They have lowered mortgage rates through an agreement with banks and public subsidies. Unemployment decreased, and jobs in construction grew vastly. A law signed in 2012 cut payroll tax, while raising income rates on the better off. It was a true success story, as jobs grew at eight percent.

Peru, in contrast, saw its currency depreciate. Poor contracts in fishing and farming markets lowered public trust. Several corruption scandals did not help matters, either.

The government has tried to respond by including bonuses and increasing wages for state employees, while giving out extra loans for small businesses. Analysts predict that such reforms could have Peru overtake Colombia once more, especially if their lottery fortune increases even marginally.

– Andrew Rywak

Sources: Slate, MercoPress, The Economist
Photo: The Budget Traveler

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AIDF Food Security Summit

AIDF-food-security-summit

October 2014 will see the second annual Aid & International Development Forum (AIDF) Food Security Summit in Jakarta.

The summit will address the food security crisis that parts of Southeast Asia are facing. The event will primarily focus on food security with respect to the agricultural and nutrition sectors.

AIDF said that the Food Security Summit will provoke “robust debate and frank information sharing and will provide a platform for the formation of strategic partnerships and collaborations.”

According to AIDF, the event will feature attendees from more than 300 Asian governments, NGOs, U.N. and intergovernmental agencies, investors, research institutes and private sector companies.

Last year’s summit, held at the U.N. Conference Center in Bangkok, featured over 200 attendees from more than 20 countries. Some of the event’s speakers included the Director General of the Asian Development Bank, an advisor from Cambodia’s Ministry of Environment and a Regional Representative Assistant Director-General of FAO’s Asia-Pacific branch.

The organization’s press release noted that 700 million people in Asia and the Pacific live in a state of poverty where they subsist on less than $1.25 a day. Since the middle of the twentieth century, the world’s population has grown by more than 280 percent.

The significant increase in the world’s population in the preceding decades “has had profound implications for development, with effects on sustainability, urbanization, and access to youth services and empowerment.” AIDF’s press release said.

In fact, the Food and Agriculture Organization of the United Nations stated that the global demand for food is expected to increase by 60 percent by 2050. Between 2011 and 2013, 827 million people in developing regions were underfed. However, the number has fallen by 17 percent since 1990 through 1992.

AIDF maintains a number of strategic, media and international partners support the event. These include Kubota, the Agricultural Research Communication Center and SWITCH-Asia, respectively.

– Ethan Safran

Sources: Aid & International Development Forum 1, Aid & International Development Forum 2, YouTube, Food and Agriculture Organization
Photo: Aid & International Development Forum

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Goma and “Happy” Music Video

Goma
Goma is located on the eastern side of the Democratic Republic of the Congo in Africa. Like many places in the DRC, the town has a reputation for being poor and dangerous. This summer, however, one viral YouTube video presented a different image of Goma and its people.

Pharrell Williams’ song “Happy” has achieved chart-topping success all around the world. Because of its popularity, groups of people have recorded their own homemade music videos for the song. One of the most viewed renditions comes from a group of people in Goma.

Kivu Entertainment Youth put the video together for the group. Their music video showcases the talented locals’ energy and happiness. The colorful portrayal of Goma starkly contrasts the public’s typical view of these people and their region.

Why does Goma carry such negative connotations?

First, the area in which Goma is located is dangerous. The area is often called the “rape capital of the world,” according to Think Africa Press. Armed bandits and rebel groups are serious concerns for those who travel the streets around Goma.

In April 2014, the United States Passport and International Travel’s website issued a statement warning visitors of the DRC to travel around Goma when only absolutely necessary. This statement replaced a similar warning that came out in October 2013.

The new statement addressed current information about the ongoing conflict between the North and South Kivu regions of the DRC. The violent disagreements between the people of these two regions have resulted in civilian casualties and displacement of families. Goma, the provincial capital of North Kivu, is in a constant state of unease due to these fights.

Political unrest also gives Goma its image of danger. Tourists in Goma are warned to refrain from taking pictures of government buildings as doing so may cause the police to place them under arrest.

A failing economy does not help Goma’s image either. Homelessness and extreme measures for survival are common. People are discouraged from driving at night because so many car robberies take place after dark.

Public transportation is hard to find because the town cannot afford to fund it. Much like the rest of the DCR, the roads are unsafe for cars, as well.

Finally, disease gives outsiders reason to fear Goma. An outbreak of measles was recently reported in Goma and has had severe effects on the local community. Other air-borne illnesses cause diarrhea and cholera in those that are not vaccinated.

With all of this information, Goma seems like a horrific place. Kivu Entertainment Youth’s video, however, promotes a different side of the Colognese people. Kelvin Batumike led the project. He told interviewers at Think Africa Press that his goal in creating the video was to bring a new image of Goma to the world.

Batumike wanted to present an area of Goma that holds the Amani Music Festival, a three-day music festival that brings all people of the area together to appreciate and enjoy music. This is a unique phenomenon considering that Goma typically cannot foster group functions without a violent protest erupting.

The attitude of the video is celebratory and makes the viewer appreciate life. Even though the people in Goma usually live in poor and dangerous conditions, they still find ways to be “happy.”

-Emily Walthouse

Sources: , U.S. Passports and International Travel

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Building Financial Security in Malawi

Banks and similar “formal financial services” are common means of protecting and investing money in the developed world, but they are scarce in developing nations. Financial security in Malawi, however, is becoming a more prevalent phenomenon.

Having access to formal financial services is important, especially in impoverished communities; it gives people a reliable means of saving that protects them from economic fluctuation. The ability to amass funds over time is crucial to establishing a stable financial future, and gives farmers and entrepreneurs alike a source of funding for new ventures.

Interventions orchestrated by the American nonprofit, Innovations for Poverty Action, show that when farmers in Malawi were given access to savings services, not only did their yields increase in the fields, but also their families had the capital to spend on necessary healthcare and adequate food provisions. Savings accounts accessible to even just one person managed to positively affect entire families.

Farmers are especially in need of formal financial services, as they often earn large sums of money in semiannual increments based on the harvest season, and have no place to store money during the lean periods between harvests. Formally storing money allows farmers to prioritize long-term investments rather than short-term spending and family borrowing, which are common in poor communities.

Banking is highly correlated with education in countries worldwide, suggesting that, like education, it could be a means to escaping poverty. It makes sense, considering that banks provide an easy way to manage income. Humanitarian organizations in the poverty-elimination business would be wise to turn to banking as a means of sustainable development. Savings accounts have already been successful in Malawi, and are sure to be as successful elsewhere in the developing world.

– Elise L. Riley

Sources: Innovations for Poverty Action, The Gates Foundation, The Economist
Photo: World Agroforestry

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Forms of Modern Day Child Labor

After child labor was legalized in Bolivia this past month, discussion of its causes and impact is on the rise.

The International Labour Organization’s (ILO) website reported that between the years 2000 and 2014, the number of child laborers has decreased one- third, from 246 million to 168 million children.

Though these numbers show promising signs, there are still many hurdles to overcome in ending child labor. Child labor does not merely consist of working in factories and on the streets, but so much more.

1. Slavery

Slavery can come in various forms but all amount to the same thing: a child is owned by someone and has zero say in what they have to do, where they go and what conditions they are forced to live in.

The Anti-Slavery International’s website reported a Sudanese woman named Mende who was taken as a teenager after being separated from her family. Mende ended up in a house in Khartoum as a domestic slave for six to seven years.

“[Once] my master… called me her slave. From that time on I understood who I am. From the beginning she treated me badly and beat me; even then I couldn’t understand why. It was only when she said that she was my owner and called me Abda [servant] that I understood.”

Slavery with children often occurs because the child’s family is in debt and cannot pay that debt off, so to become free from the burden of debt, they sell their child. The child will work for years to pay off their family’s debt.

Other types of slavery include forced labor, which in the private economy generates over $150 billion illegally per year. In addition, War Child U.K. has reported that there are an estimated 250,000 child soldiers in the world because of forced labor.

2. Sexual Exploitation

Sexual exploitation is taking advantage of, abusing and mistreating someone sexually for profit and gain. Many children- girls and boys alike- are exploited every day, whether it be through pornographic material, sexual acts, child marriage or prostitution.

According to the Half The Sky Movement, “trafficking for sexual exploitation is one of the fastest–growing organized crimes, generating $28.7 billion each year.”

What does this mean for children? More and more children will be bought and sold, kidnapped and trafficked across even international boarders, abused countless times over and forced to perform sexual acts.

3. Illicit Activities

Illicit activities are crimes such as producing and/or trafficking drugs, shoplifting, stealing automobiles, theft and begging for money.

Children are forced or willing to get involved with drugs. For those who willingly get involved, it is for the belief that they will become wealthy and gain status. It is these children who are involved in the selling of narcotics that develop drug addictions.

Oftentimes, children are made to become beggars and earn money from passersby. If they do not earn enough throughout the day, they are typically beaten.

4. Work Harmful to Mind, Body and Spirit

Forced into child labor, children suffer mentally, emotionally and physically. ILO reported that child labor which involves domestic work, manufacturing, agriculture and construction are sectors of child labor that raise tremendous concern.

Around 60 percent of child laborers are in agriculture worldwide. Child labor streams mainly from poverty and many times in family farming. Though child labor is thought of only to be in foreign countries, it can be seen on farms in America.

Mining is becoming increasingly popular as a form of child labor. The United Nations Global Initiative to Fight Human Trafficking reported that, “[Children are] forced to spend 10 or more hours a day in dark, cramped mines filled with poisonous chemicals… Children working in the gold mines face mercury poisoning; in coal mines, children inadvertently consume toxic coal dust…”

UN.GIFT also reported that over 32,000 children die per year as a result of working in unsafe conditions.

While many children are playing on playgrounds and catching fireflies on a warm summer night, there are those all around the world who are in bondage, in despair, in crisis, begging for help and a way out.

Juan Somavia, ILO Director- General, said, “A world without child labour is possible with the right priorities and policies…Driven by conscience, let’s muster the courage and conviction to act in solidarity and ensure every child’s right to his or her childhood. It brings rewards to all.”

– Kori Withers 

Sources: International Labor Organization 1, International Labor Organization 2, UN, Anti- Slavery International, Half The Sky Movement, War Child UK, United Nations Global Initiative to Fight Human Trafficking
Photo: The Guardian

Peace Talks in South Sudan

On August 11, John Kerry released a statement expressing his disappointment regarding the lack of progress the peace talks in South Sudan are making. Even though the Sudan People’s Liberation Movement and the Government of South Sudan promised to take 60 days to form a transitional government. The Inter-Governmental Authority on Development was the mediator of the agreement; however, neither side has approached the peace talks with the level of seriousness they deserve.

The Peace Talks in June were stalled between president Salva Kiir and rebel leader Riek Machar. BBC reports that 1.5 million people have been displaced since the fighting began and more than seven million people are currently at risk for both disease and hunger. Moreover, the country is very close to forcing people to live in a debilitating famine because the constant fighting between the two parties prevents farmers from taking care of their crops and animals so that they can make a living and provide food for their communities.

Kerry explained that stalling the peace talks only increases the number of deaths and in his statement, explained that “these killings further undermine the enormous humanitarian response needed to support the 3.9 million South Sudanese who are in desperate need of life-saving food assistance and who continue to live in fear of violence.”

The Head of Special Envoys for South Sudan, Peace Mediation, Seymour Mesfin told the Standard Digital News that he believed that the current talks were making progress and stated that “there is reduced intensity of hostility and release of detainees by the government.”

Even when the talks resumed, however, the violence in the area was still proving to be very unstable and seems to suggest otherwise. In the town of Bunj, in Maban County, Upper Nile State, a humanitarian worker was killed in the midst of a confrontation between deserting soldiers and soldiers from a local militia.

– Jordyn Horowitz

Sources: BBC News, Standard Digital, U.S. Department of State
Photo: BBC News

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Five Current Global Issues

current global issues
In the 21 century, the world has made great strides in reducing poverty, eliminating diseases and improving the quality of life for all. However, this progress rests on shaky foundations. Current global issues threaten to undermine humanity’s attempts to better the world and damage all of society.

According to the Nautilus Institute for Security and Sustainability, global issues are those that potentially affect everyone on earth, not just large groups of people. Similarly, solutions to global issues require all people to cooperate in order to meaningfully change the status quo. Since they pose a fundamental risk to society as a whole, global issues require much attention.

Here are just five examples of current global issues. Many of them are interconnected, but any one of them could have serious consequences for everyone if left unchecked.

1. Terrorism

International terrorist organizations can cause conflict anywhere, thus terrorism is a global issue. The expansion of attacks by terrorists hurts many people in developing countries; according to the U.S. State Department, terrorist attacks killed over 11,000 and wounded 21,000 in 2012.

Terrorism also had wide-ranging economic impacts. Former U.S. Ambassador Francis Taylor found that global airline industries lost             $15 billion and global insurance industries lost $50 billion in the wake of the 9/11 attacks. World governments will need to strengthen their relations and promote democratic principles to reduce terrorist threats.

2. Lack of International Labor Laws

Weak international labor laws are a global issue because they hurt workers in the developing world and the economies of developed nations. Laws must exist to protect workers’ rights while allowing multinational firms to do business. The World Bank urges countries to cooperate and strengthen labor laws to prevent abuses and ensure fair wages; at the same time, the laws must facilitate wealth creation. Without optimal rules, the world economy weakens and workers face terrible conditions.

3. Climate Change

Climate change affects all of earth’s environments and is thus a global issue. A report from the Organization for Economic Cooperation and Development (OECD) found that droughts and extreme weather would intensify globally, leading to poor crop yield, water shortages and even desertification. The worst-affected areas, Sub-Saharan Africa and South Asia, will have trouble adapting because per capita GDP is low; millions will be unable to grow or afford food and will starve.

As entire regions face food crises, global economic production becomes much lower, and nations have to care for hungry refugees that flee inhospitable conditions. To prevent the situation from becoming worse, the world must adopt more sustainable energy policies and waste management practices.

4. Antibiotic Resistance

Antibiotic resistance is another global issue that threatens the health of millions and the progress of modern medicine. In 2014, the World Health Organization (WHO) announced the discovery of drug-resistant E. coli, staph and pneumonia-causing viruses all over the world; it also found that 20 percent of previously treated tuberculosis cases were drug-resistant.

The emergence of antibiotic-resistant disease is extremely dangerous. Antibiotics that people use to treat serious infections will stop working and disease fatalities will increase. The global community will need to implement stronger restrictions on antibiotic use to curb drug resistance in deadly diseases.

5. Poverty

While many of the above problems exacerbate poverty in many world regions, poverty itself is a global issue because it leads to social problems that affect even the richest people. According to the research site Poverties.org, poverty leads to higher crime rates, more instances of substance abuse and greater susceptibility to infectious disease. This hurts economic productivity and can lead to instability. Poverty also is linked to terrorism. Consequently, the world must fight poverty to address other global issues.

The world’s current global issues are complex, interconnected problems that require concentrated action for systemic change. Any single global issue could become a crisis with huge economic and human costs. Only with strong international cooperation can the world solve global issues.

-Ted Rappleye

Sources: U.S. State Department 1, U.S. State Department 2, World Bank, OECD, WHO, Poverties, Nautilus Institute
Photo: Flickr

Hunger in The Gambia

The smallest country in continental Africa,The Gambia, is among the continent’s least developed and poorest nations. Over half of Gambians live on less than two dollars a day, which makes it very difficult to acquire adequate food provisions for themselves and for their families.

Making that quest even more difficult is the fact that The Gambia’s economy relies on agriculture, yet food production only accounts for 60 percent of the population’s estimated need. The government imports large amounts of food to meet the remaining need of its people, but an agricultural economy vulnerable to the effects of subpar harvests and unpredictable weather means that the government often cannot import enough food to meet 100 percent of the need.

The Gambia is surrounded on three sides by Senegal, thus the limited coastline lends to a lacking fishing industry. Because of a lack of fish processing and a selling of infrastructure, fish are typically sold to companies who have the capacity to keep them fresh and the facilities to sell them, rather than using the fish to feed the Gambian population.

However, the tourism and nut industries are growing in The Gambia, giving the country a bit more wealth with which to take care of its people. Unfortunately, rates of hunger remain high. In at least one of The Gambia’s five geographical regions, three-quarters of the population face the effects of severe malnutrition due to long-standing hunger.

International humanitarian efforts, such as those orchestrated by the United Nations’ World Food Programme, have been somewhat successful in working with the Gambian government to implement sustainable feeding programs.

By assessing what methods have been successful in other countries and modifying them to fit The Gambia’s unique needs, those who have established food aid in this country have created programs that have not only provided food to the hungry, but have also completely prevented hunger within some families.

What’s most important about food aid in The Gambia, though, is that humanitarian organizations have been careful to transfer their knowledge and to teach necessary skills to the Gambians themselves. If aid continues to be this sustainable and effective, hunger in The Gambia has potential to decline measurably.

– Elise L. Riley

Sources: World Food Programme, World Bank, All Africa
Photo: Action Aid

Erdogan Wins Election in Turkey

Erdogan Wins Election
Turkey’s Prime Minister, Recep Tayyip Erdogan, won the presidential election on Aug. 10 — defeating rival Ekmeleddin Ihsangoglu with 52 percent of the votes and a difference of 13 points. Despite a December corruption investigation and massive protests last year, the leader has won his ninth consecutive election since coming to power in the early 2000’s. His time in office has been marked with considerable economic growth and questionable regard for freedom of speech and transparency.

“Today is the day we open the doors to a new beginning, the day we establish a new Turkey,” Erdogan vowed in a victory speech that referred often to new cooperation opportunities among old political foes.

But one concern the opposition has already voiced is that the Turkish presidency has traditionally been a ceremonial office with limited power, and Erdogan has already promised to be an active president. Should the Justice and Development Part, to which Erdogan belongs, regain control of Parliament, a new constitution could emerge with increased presidential powers.

Critics, who often compare Erdogan to Russian President Vladimir Putin, see this proposed expansion of power as another example of Erdogan’s authoritarianism. His opposition would suggest his politically active presidency would conflict with Turkish law mandating the president act impartially without partisanship.

In May 2013, 3.5 million Turks partook in demonstrations throughout the country, protesting the governments limits on civil rights and environmental issues stemming from construction projects. Police reacted with tear gas and water guns in the Gezi Park protests, for example.

Yet, as evidenced by his election, Erdogan remains popular among a significant portion of the Turkish people. This popularity is largely due to the economic growth Turkey has experienced with Erdogan’s leadership. The Turkish middle class grew twenty percent from 2002 to 2011 and the Gross Domestic Product per capita rose to almost US$11,000 – freeing millions of Turks from the clutches of poverty.

The Turkish economy grew steadily since Erdogan’s first term with only a slight setback in the wake of the Global Financial Crisis. Erdogan, with sharia law’s ban on usury in mind, enacted policies centered on lowering interest rates.

The lower rates have fostered consumer spending that led to immense growth, but have also, according to certain economists, risked an economic bubble as this spending requires the Turkish population to increase its debt. The growth also depends on a steady influx of foreign capital, which has faltered recently as investors have begun to doubt whether Turkey can sustain its economic growth.

Analysts consider Erdogan’s future popularity at risk as younger generations, accustomed to a steadily improving national economy, question his leadership in a slowing economy. While Erdogan promises to grow the Turkish economy from the 18th to the tenth largest in the world within the decade, observers contend his power will peak with economic growth.

Still, Erdogan remains the most powerful man in Turkey, with the a positive economic track-record and widespread popular support. To balance power and democracy while addressing faults in the economy, will be the new President’s challenge for the world to watch.

– Erica Lignell

Sources: Le Monde, New York Times, TIME, Forbes, Foreign Policy
Photo: En.Qantara