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Archive for category: Global Poverty

Key articles and information on global poverty.

Economy, Food & Hunger, Global Poverty

Improving Nutrition Improves the Economy

The long-term benefits of improving nutrition around the world are more than just a humanitarian accomplishment. Improving the human condition is undoubtedly vital; economists, investors, governments and researchers all over the world are taking a look at nutrition from another angle with a focus on how minimizing poor nutrition works to maximize the growth potential of the global economy.

Research supports the fact that improving nutrition is a fundamental stepping stone for the world to reach global health and development goals.

Adrianna Localbo, Campaign Director of the 1,000 days campaign, explained the urgency of looking at nutrition with a comprehensive perspective. The 1,000 days campaign outlines the need for proper nutrition during the first 1,000 days of a child’s life.

In an interview with Devex Impact, Localbo emphasized that the proper nourishment in that critical time period is necessary for achieving substantial rises in the way of education and economic productivity in developing countries.

Localbo stated that when a child is well-nourished in those critical early stages, they are more likely to go farther in school, have a higher IQ, and possess a greater earning potential.

Good nutrition is critical to boost a child’s immune systems to prevent the devastating effects of diseases like malaria and tuberculosis. A well-nursed child is 13 percent more likely to be in the correct grade of school. On a larger scale, proper nutrition can help a country’s GEP improve by up to 11 percent.

Recently the private sector has become increasingly involved in supporting the fight for improved nutrition. Localbo stated that ninety businesses worldwide have made financial pledges to help reduce poor nutrition.

She noted that the private sector recognizes that the support is an investment to push for the creation of a sustainable, resilient population. The population is, after all, what makes not only the workforce but also the base of consumers.

At the hunger summit in 1996, countries pledged to work to halve hunger by 2015. Heads of states came to an agreement that the cost of hunger greatly hurts the economic growth of countries.

Investing in nutrition is an investment in human and social capital. According to researchers, it is the future of economies.

– Caroline Logan

Sources: FAO, Devex
Photo: Quest Garden

August 15, 2014
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Global Poverty

JADEtribe: Fashion With a Conscience

In the fall of 2008, Kimberly Hartman decided to temporarily leave behind a 16-year-long career in fashion in pursuit of an opportunity to pause, reflect and gain some perspective: an extended solo trip to India and South East Asia. What she discovered on her journey inspired JADEtribe, the iconic handbag collection that has altered not only Hartman’s career path, but also her global impact.

The fashion and design guru landed in Laos, a far cry from the cosmopolitan cities she’d been theretofore residing in. Laos, one of the poorest countries in East Asia—and one of the few countries that remains communist—has made significant gains with poverty alleviation within the past two decades, bringing the poverty rates from 39 percent down to 26 percent with the help of foreign aid. The country is heavily mountainous and landlocked, and though less than 5 percent of the land is suitable for agricultural production, the economy remains agrarian.

While exploring a weaving market in a remote village in Laos, Hartman found what she was looking for: inspiration. She became at once enamored by the colors created with natural, organic dyes, and by the awe-inspiring textiles that were woven from them. Fabrics and prints that were unlike any others she had seen before caught Hartman’s well-trained eye. Here, in Laos, where women work more than men—taking on an average of 70 percent of the farming and household duties—and receive less education were beautiful creations that essentially went unnoticed. Hartman was inspired.

She has since employed the weaving village to create exclusive colors and patterns that laid the groundwork for her entirely unique collection of JADEtribe handbags.

And it was more than just a brave career move for Hartman, who had established a name for herself in New York City managing some of the industry’s top brands. It was the perfect marriage of two things about which Hartman has always been deeply passionate: fashion and humanitarianism.

Through the creation of JADEtribe, Hartman has discovered a way to launch a brand that directly gives back to the people of a country in which 41 percent of the population is malnourished. By commissioning villagers, leather artisans and female sewers to create her handbags—and paying a fair price—Hartman has created immense opportunity for growth in jobs and an increased quality of life for a population of a least-developed country.

One hundred percent natural and ethical, JADEtribe bags truly represent fashion with a conscience. Seen on celebrities and in boutiques and trade shows across the globe, JADEtribe is a shining example of how one person’s passion and desire to make a difference truly can transform lives. Hartman’s JADEtribe bags are available on her website, www.jadetribe.com.

– Elizabeth Nutt

Sources: UNDP, JADEtribe, World Vision, UN, The Borgen Project
Photo: BoutiqueBlu

August 15, 2014
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Global Poverty, Health, Human Trafficking

HumanTrafficking in Thailand Raise Suspicion

In a strange case, nine surrogate babies were found in “suspicious circumstances” in a Bangkok condo, raising suspicion over possible human trafficking in Thailand. While there were no birth certificates for the children, they were all under good health and had a personal nanny when they were found. Nevertheless, the suspicious story has only gained traction as the ministry continues to investigate the case.

The father, an alleged “Japanese businessman” who wishes to remain nameless, is under primary investigation for possible plans to traffick the babies, as well as to determine if the surrogacy of the babies — who, lawyers claim, all have the same mother — was illegal. Nevertheless, the man’s lawyer remains adamant that he loves his children and even bought properties, bonds and insurance under their names.

This most recent report comes just days after allegations were made that an Australian couple abandoned their Down syndrome surrogate baby while taking home his perfectly healthy twin sister. Thailand, which has been under recent attack as the “go-to” place for commercial (illegal) surrogacy due to strict laws being enacted in neighboring countries, may now hold a new law prohibiting the act in lieu of recent events.

Prohibiting commercial surrogacy, the law would provide punishment for violators, including up to 10 years in prison and fines for up to 200,000 baht (roughly $6,200.) While many countries have already tightened their laws regarding surrogacy, most often with an implanted embryo from unbiological parents, other countries such as Thailand, Ukraine and India have become almost tourist destinations for parents looking for low-cost surrogate mothers.

While Thailand is a growing country, more than 13 percent of its population is still living below the poverty line. Due to lack of strict legislation, human trafficking is a growing problem in the country. And while the unemployment rate is still less than 2 percent of the population, the percentage of those living in poverty — and being forced into human trafficking — is only continuing to increase.

The nannies and surrogate mother found with the nine babies have all been questioned, and the babies have been taken to a state-run nursing home in Nonthaburi’s Pak Kret district. Under the Child Protection Act, the babies will be taken care of by the ministry until their families or guardians have been found. As the investigation continues, possibilities of human trafficking and commercial surrogacy could result in legal action toward any guilty parties.

– Nick Magnanti

Sources: World Vision, World Bank, The Star, UCA News, Japan Times
Photo: Radionz

August 15, 2014
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Global Poverty, Human Rights

Ukraine Rocketing from Both Sides

While the Ukrainian government has denied any use of Grad rockets — a high explosive rocket that can reach up to a range of 20,000 meters — a recent Human Rights Watch investigation proved both government and separatist forces have used the rockets in recent attacks.

According to Human Rights Watch, the Ukrainian government has killed more than 15 civilians and wounded numerous others in at least four separate attacks between July 12 and July 21. Separatist forces aren’t so innocent either. According to a statement made by the Pentagon last week, Russian forces were planning to transfer “heavy-caliber multiple-launch rocket systems” to Ukraine separatist forces. The rockets, which are in the 200mm+ range, pose as a looming threat for a country already proliferated with terror.

The use of unguided rockets in populated areas is a breach of international and humanitarian law and could result in war crimes. According to HRW, these crimes could be faced by both government and separatist forces. While the report certainly condemns government and separatist use of these rockets, it further criticizes separatists for not taking proper measures to avoid encamping in densely populated areas.

Senior Emergencies Researcher for Human Rights Watch, Ole Solvang, condemned commanding officers on both fighting sides for using the rockets, claiming that “[G]rad rockets are notoriously imprecise weapons that shouldn’t be used in populated areas.”

These most recent accusations come just a few weeks after the July 17 downing of the Malaysian Airlines Jet, MH17, in Ukraine. The crash, which was caused by a “massive explosive decompression” from a rocket, resulted in 298 deaths. The downing, which is still under investigation, was immediately addressed by the United Nations’ High Commissioner for Human Rights, Navi Pillay, who hinted her suspicion that the attack may have been a war crime by the separatists.

More than 1,129 people have been killed and at least 3,442 others have been wounded as a result of the Ukrainian conflict since mid-April. The anti-government protests, which came as a result of former President Yanukovych’s failure to partner with Europe over a trade deal, have resulted in increased division among the country.

Fighting in Ukraine has only further exacerbated the country’s economic problems. With many families forced to vacate cities in major turmoil, displacement has caused an inevitable increase in unemployment and, predictably, poverty. One such city is Lugansk, which — at once a city of 420,000 — now occupies less than half of its original population.

Those left in the city are faced with an incredible lack of medical supplies, lighting and electricity. Those still living there, including retirees or families with small children with hardly any money, are basically trapped. Lugansk — and other Ukrainian cities — citizens are forced to endure inhumane conditions of fighting, violence and medical neglect. While a cease-fire from both ends is the country’s primary solution, Ukrainian citizens will continue to suffer until the violence is halted.

– Nick Magnanti

Sources: Huffington Post, SOS Childrens Villages, RT
Photo: WN

August 15, 2014
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Children, Food & Hunger, Food Security, Global Poverty, Health

Malnutrition Plagues Children of Rural China

China became an economic superpower in only a matter of decades. Forbes Magazine’s annual rich list reported that China has had 152 billionaires this past year. The once struggling nation has shown promising improvement. According to the World Bank, the number of impoverished people living in China dropped from 683 million in 1990 to 157 million in 2009. This improvement is a result of the rapid urbanization in China in recent years. Greater economic opportunity and government assistance is now available in cities. However, children in rural villages are stuck in a seemingly unbreakable cycle of poverty.

The children of rural China face a variety of challenges that are virtually nonexistent in the cities. Among one of the most glaring is the struggle against malnutrition. UNICEF estimates that there are 12.7 million stunted children in China; this life-long condition that results from severe malnutrition plagues children most during early childhood.

In addition to malnutrition, anemia takes a tremendous toll on rural Chinese children. Stanford University conducted a test on 1824 babies in China’s Shaanxi Province. Forty nine percent of the babies tested were anemic and 28 percent were near anemic. Furthermore, of all the babies tested, 40 percent displayed cognitive or motor problems.

Why are rates of anemia so high? Stanford reports that while the parents were generally willing to spend additional money on food for their children, they were uninformed on what type of nutritional value the food should have. Many micronutrients, such as iron, were missing, indicating that fresh fruits and vegetables were consumed infrequently. Additionally, further investigation revealed that mothers stopped breastfeeding after six months. From that point on, the child would typically eat rice porridge or soups.

Misinformed parents are often responsible for their children’s poor health. Parents often do not introduce solid food into children’s diets until they are 12 to 18 months old, though it is recommended that solid food make up half of a one-year-old’s diet. Many parents believe myths that babies cannot digest hard foods or that particular foods, like rice, are better for cognitive development.

Treating anemia and replenishing nutrients is actually quite easy. Stanford researchers state that simply taking iron supplements can counter anemia. To address the rampant malnutrition in China’s poor, rural provinces, UNICEF has begun to distribute a nutrition supplement called Ying Yang Bao. Ying Yang Bao is a small packet of powdered vitamins, minerals and proteins that can be mixed into solid foods like porridge.

Many rural Chinese families cannot afford to buy fresh fruits, vegetables and proteins like beef. Dairy products are also expensive and difficult to access. Often, noodles, porridge, rice and starches like potatoes constitute meals. Fortunately, the micronutrients in Ying Yang Bao are easily dissolved in porridges and soups.

UNICEF reports that, between 2008 and 2011, more than 30,000 rural children received Ying Yang Bao. After consumption, anemia levels were cut in half. A long-term solution to malnutrition is still in the works. While aid from UNICEF and other organizations is improving the health of rural children, education is a key issue to be addressed. Parents are misguided by myths and superstitions, which has led to the silent suffering on many children. A public education program has not been officially instituted, but would be another component of China’s long-term solution for malnutrition.

– Bridget Tobin

Sources: UNICEF, Stanford, World Bank, CNBC, The Guardian
Photo: China.org

August 15, 2014
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Charity, Children, Global Poverty, Nonprofit Organizations and NGOs

ChildFund International

ChildFund International works to help more than 400 million children all over the world who live in poverty. ChildFund was founded by Dr. J. Calvitt Clarke who started the “child scholarship” and who introduced and used seven innovative methods in order to reduce child poverty.

The first innovation, the aforementioned “child scholarship,” depends on a sponsor providing donations for one child.

The second innovative idea is “working with families,” where ChildFund helps run orphanages in addition to working with families to help them create better conditions for their children.

The third innovative idea involves encouraging “local communities to run local programs” in order to show the community how to foster the emotional and social needs of young children.

The fourth innovative idea impacts ChildFund itself. ChildFund promised to operate on a “Code of Fundraising Ethics;” it therefore follows this pledge by operating with honesty and integrity.

The fifth innovative idea was the creation of the “emergency action fund,” where an emergency response team will be available to provide immediate relief in situations of violence and in the face of natural disasters.

The sixth innovative idea was the creation of “child-centered spaces,” which are areas children can go in order to recover and escape.  The goal is to provide children a safe place to be and to learn in the midst of war and other types of violence.

The seventh innovative idea was establishing “a new approach to program development” that involves listening to children explain how poverty impacts them and then specifically responding to their comments in order to remedy the situation.

One of ChildFund International’s most recent projects is dedicated to helping families who have members afflicted with HIV to “build a future beyond HIV.”  The program tries to ensure that families have a safety net so that they may continue living a relatively normal life.  This “safety net” includes the following: health care services, protection if a family member dies, psychosocial support, food and nutrition, education, and economic empowerment.”

– Jordyn Horowitz

Sources: ChildFund International 1, ChildFund International 2, ChildFund International 3, BBB Wise Giving Alliance
Photo: ChildFund International

August 15, 2014
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Global Poverty

Internet Could Solve Poverty in Colombia


The range of wealth in Colombia is vast. The richest people are six socioeconomic brackets higher than the poorest, and a fraction of the size. 88 percent of the population belong to the lower half of the pyramid.

The Colombian government wants to erase the gap between the wealthy and the poor and they want to use the Internet to do so. The plan is to connect 63 percent of the population to the Internet by 2018.

When the initiative began in 2010, 2.2 million people were connected to the Internet. Today, Colombia’s Ministry of Information and Communication Technology’s Live Digital Plan (Vive Digital) has increased that number to 8.8 million.

Diego Molano is Colombia’s minister for information and communications technology. He attributes the 2.5 million people lifted out of poverty in Colombia in the past three years to the program.

“When we connect, for example…a small school in the middle of the jungle to the Internet, those kids…have effectively the same opportunity to access the whole of information society—just like any kid in New York, London, or Paris,” Molano explains.

Molano recognizes, however, that connecting people to the Internet is not all that is needed. The Internet, he explains, is designed for the wealthy. It does not have applications for the rural shop-owner. “If you tried to sell Internet to them today…they say, ‘Why?’…no applications that impact their daily cash flow.”

The challenge becomes finding a way to provide Internet to Colombia’s poor rural populations as well as make it useful for them. To help with the challenge, Colombia has reached out to U.S. tech companies such as SAP, Google, Oracle and Facebook.

“Colombia is the perfect lab for them because poor people are already connected in this country,” Molano says.

One major issue, Molano has not addressed is that of electricity. In order to have Internet there needs to be access to electricity, and many parts of the country do not have that. An anonymous employee of Vive Digital told Colombia Reports that while he has delivered many computers to schools, a substantial portion have not been used because there was no access to electricity.

Colombia’s Internet initiative sees the equalizing power of the Internet, but is also finding challenges in its application.
“When you connect a potato grower in the Andean mountains, and he doubles his income thanks to Internet, you are reducing inequality,” Morano says, describing the ideal situation.

– Julianne O’Connor

Sources: Colombia Reports, Washington Post
Photo: Elespectador

August 15, 2014
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Global Poverty, Humanitarian Aid

Global Poverty & the Economy

Humanitarian work is intuitively selfless; it is an opportunity to positively impact a stranger’s life without any expectations that he will return the favor. Although this makes a certain amount of sense, the sentiment is not entirely true.

In fact, when federal government agencies such as the United States Agency for International Development invest to eliminate global poverty, they see huge economic returns. Global markets expand and jobs are created. Financial gain should not necessary be the sole motivation for aid, but humaneness and generosity are not always the federal government’s prime movers. Boosting the economy makes for a good supplement.

The process, from foreign aid to market expansion, works like an investment. The investor, the one providing the aid, is essentially buying consumers who will then in turn spend money on foreign goods.

“From an economic perspective, what happens in one country has ripple effects throughout the world,” says Christopher Policinski, the CEO of Land O’Lakes.

The ripple effects starts like this: a small investment is made in a poor overseas community. Maybe this money provides clean and accessible water, maybe it champions education, or maybe it funds electricity and energy projects. In every possibility, it begins to raise the community out of poverty, making consumerism more viable.

The working poor, for example, may have money for apples, soaps, toothpastes and wheat. Middle to upper classes may now have money for plane tickets, clothing, technologies and cars. These goods are purchased from the United States and from other industrialized countries, boosting their economies.

Current data backs this theory. Here are some statistics you will find on the Borgen Project website:

1.

One out of five U.S. jobs is export-based. This means that one out of five U.S. jobs relies on global markets to succeed. Investments in foreign, impoverished communities expand these markets by creating new buyers of U.S. products, bolstering U.S. export-based business.

2.

Developing nations receive 45 percent of our country’s exports. This is important because it shows how much the U.S. really does rely on foreign communities that are still “developing.” Aiding those people in those markets will likely produce strong economic benefits in the U.S.

3.

The list of the countries with the fastest growing gross domestic products (GDP,) according to their annual average GDP increase percentage, may be surprising. The list goes: Angola (11.1,) China (10.5,) Myanmar (10.3,) Nigeria (8.9,) Ethiopia (8.4,) Kazakhstan (8.2,) Chad (7.9,) Mozambique (7.9,) Cambodia (7.7) and Rwanda (7.6.) In comparison, the U.S. GDP growth rate in 2013 was 1.9 percent. Investing in countries like Angola is smart business.

History backs this theory as well.

“From Germany to South Korea, nearly all of the United States’ top trading partners were once recipients of U.S. foreign aid,” reads the Borgen Project’s “Global Poverty & U.S. Jobs” page.

There is a lot of reason to promote foreign aid for its economic benefits, but it is important not to forget that at its core it is a humanitarian act. People are not only consumers. If Congress needs to think otherwise to secure bipartisan support and increase generosity in development projects, which it could stand to do, then so be it. It could be for the best.

– Adam Kaminski 

Sources: The Borgen Project, Bloomberg Businessweek
Photo: Bloomberg Businessweek

August 14, 2014
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Global Poverty

10 Worst Tsunamis


Tsunamis have occurred frequently throughout human history. Although they
are seen in every ocean on Earth, 80 percent of the worst tsunamis occur in the Pacific “Ring of Fire.”

As a tsunami wave approaches shallow water over land, the wave slows, causing the much quicker traveling water to pull up, extending the wave vertically. Reaching the shore, these waves can then be over 100 feet with multiple waves occurring in succession. Discussed below are the 10 worst tsunamis in history based on fatalities since the year 1700.

 

The 10 Worst Tsunamis in History



1. Indian Ocean Tsunami – The earthquake that caused the infamous Indian Ocean tsunami of 2004 registered a 9.1 in magnitude and was said to have the energy of 23,000 atomic bombs. This extreme rupture caused massive tectonic plate movement, which caused other secondary faults to occur and expose an entirely new oceanic trench. These secondary faults elevated the height and speed of the generated waves.

According to some scientists, the amount of energy released was so great, the Earth’s rotation was slightly altered and wobbling of its axis occurred by 2.3 cm. The Indian Ocean tsunami of 2004 killed more than 283,000 people. It produced waves 50 m tall and reached 14 countries. 

2. Messina, Italy Earthquake and Tsunami – On December 28, 1908, an earthquake, lasting for less than a minute, shook the cities of Messina and Reggio. The earthquake registered a 7.1 and caused severe damage to the cities. Only a few moments after the shaking, 12 meter tsunamis inundated nearby coastal areas, destroying almost all of the structures and killing 70,000 people. It was proposed that the tsunami was not caused by the earthquake itself, but rather by an undersea landslide which was caused by the earthquake. In total, 100,000 to 200,000 people lost their lives.

3. Portugal-Morocco Tsunami – The morning of All Saints Day in 1755, Lisbon, Portugal and its surrounding areas were ransacked by a nearly 9.0 earthquake which lasted for several minutes. The earthquake was felt in Africa, Greenland, all the way through Finland and in the Caribbean.

In the center of Lisbon, it opened fissures 15 feet wide. Survivors of the quake rushed to open spaces only to see the waters recede and reveal the sea floor. After 40 minutes, three large tsunami waves inundated the area, forcing people to flee for their lives. In other areas, fires engulfed buildings and raged for five days. The waves then spread out to many surrounding areas in the Atlantic Ocean, including Morocco, where an estimated 10,000 people lost their lives. The total life claim of the earthquake and tsunami was as much as 60,000 to 100,000 people.

4. Tsunami in South Chinese Sea, 1782 – The destructive force of this tsunami lands it on this list. It traveled 120 km into the Chinese mainland, killing over 40,000 people in the process. The tsunami itself was caused by a tectonic earthquake on the ocean floor and it destroyed many crops and farming areas. Other outside information concerning the damage done is unknown.

5. Krakatoa, Indonesia Tsunami – In a series of massive explosions accumulating over August 26-27 in 1883, the eruption of Krakatoa occurred. The sounds produced by this volcanic eruption are considered to be the loudest sounds ever heard in modern history, spreading 3,000 miles from the island chain. Three volcanic peaks erupted over that two day period, unleashing energy four times the strength of a Tsar Bomba (one of which is more than 13 times the force of the Hiroshima, Japan explosion). Devastating tsunamis then spread over the islands, killing an estimated almost 40,000 people.

6. Tokaido-Nankaido, Japan Tsunami – A earthquake of 8.4 magnitude which caused 25 meter waves to engulf the coastal regions of Kyushyu, Shikoku, Honshin and Osaka in 1707. The waves of the tsunami extended several kilometers inland and as many as a dozen occurred over a one hour period. A total of 30,000 people died as a result of the tsunami.

7. Sanriku, Japan Tsunami – The Sanriku earthquake of 1896 was one of the most destructive earthquakes to ever hit Japan. It registered an 8.5 in magnitude and caused two large tsunami waves which caused 27,000 deaths. The waves of the Sanriku event reached 25 meters and swept away everything they came into contact with. Different seismologists have declared that the resulting tsunami waves were much more devastating than they should have been, given the estimated seismic magnitude.

8. Southern Chile Earthquake and Tsunami – Possibly the largest earthquake in recorded history occurred on May 22, 1960 off the coast of Chile. The earthquake registered 9.5 on the Richter scale and sent 80 foot waves pounding into the shore of Chile only 15 minutes after the earthquake occurred. The waves stretched towards Hilo, Hawaii 15 hours after the earthquake and then towards Japan 22 hours later. The tsunami also affected the Philippines, eastern New Zealand, Southeast Asia and the Aleutian Islands. The amount of damage ranged from US $400- 800 million and caused up to 6,000 deaths.

9. Tohoku Earthquake and Tsunami – The 2011 earthquake of Tohoku was the most powerful earthquake to have ever hit Japan, and the fifth most powerful earthquake in recorded history.

It registered a 9.0 in magnitude and was preceded by large fore-shocks and hundreds of aftershocks. The main quake lasted several minutes, producing seismic energy that could provide a busy city like Los Angeles power for an entire year.

The resulting tsunami produced record high waves of over 30 meters and inundated several hundred kilometers of land. 15,884 people lost their lives in the resulting tsunami and also in the nuclear disaster of Fukushima. The Tokoku tsunami was the most expensive natural disaster ever recorded, costing the US equivalent of $300 billion.

10. Ryukyu Islands Tsunami – The earthquake that occurred in Ryukyu Islands, Japan in 1771 registered a 7.4 in magnitude. The tsunami that resulted claimed a third of the population (over 12,000 lives), with reports that the waves it produced were 40 to 80 meters high (although there may have been confusion in the original measurements). There was also a claim that an entire islet disappeared as a result of the event, but this has never been verified.

– Ashley Riley

Sources: Potiori, Australian Geographic, Random History, CNN, Some Interesting Facts, World History Project, Berkeley
Photo: Meljay

August 14, 2014
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Global Poverty

What Plagues Poverty in Palestine?

For years, the conversation on Palestine and its territories has almost exclusively focused on the relationship between Palestine, Israel and Egypt. For the 1.1 million Palestinians that live in poverty as a result of high unemployment, lagging wages and harmful inflation rates, Israel’s recent military actions in the Gaza strip have hardly encapsulated the extent of Israel’s effect on Palestinians.

Official statistics from the Palestinian Central Bureau of Statistics reveal the poverty rates to be 25.8 percent in the Palestinian
Territory, 17.8 percent in the West Bank and a staggering 38.8 percent in the Gaza Strip for 2011, the last year for which statistics are available.

While these rates sound high, there’s more to the story than the statistics suggest.

In a sobering July 2013 report by the United Nations Conference on Trade and Development, it was reported that “the Palestinian Authority suffered its most serious fiscal crisis since 2006” because of less foreign aid and “Israel’s withholding of Palestinian revenue.” In 2012, Palestine’s growth was halved from the previous two years to just six percent due to structural barriers imposed by Israel and the international market.

Israeli restrictions on the movement of Palestinian goods, for example, meant less money returned to the pockets of Palestinians, severely reducing growth and worsening already high rates of poverty. Furthermore, the illegal expansion of Israeli settlements in the West Bank left Palestinians with fewer options to physically export their goods, and many were simply incapable of accessing the same productive resources because of aggressive Israeli settlement expansion.

In the Jordan Valley, Palestinian workers are forced to take longer roads and go through checkpoints. These actions imposed by Israeli officials increase costs and decrease Palestinian competitiveness in the international market, ultimately reducing employment opportunities and deepening levels of extreme poverty.

Of course, not all of Palestine’s economic woes can be ameliorated with less aggressive Israeli policies. Low labor productivity contributes to poor Palestinian economic performance and leaves less money in the coffers of government officials, who spend large portions of the government’s budget on social spending. Illegal smuggling of economic goods is also a major drain to the taxable actions of Palestinian officials.

Overall, those living in poverty in Palestine make up a significant portion of the population, which consists of about nine million citizens.

While no World Bank data exists to detail the number of individuals living on two dollars a day or less in Palestinian-controlled territories, the research conducted by the United Nations and the statistics compiled by the Palestinian government provide a distressing picture of the state of the poor in Palestine. These poor are large in number, and if international donors do not pledge aid to assist Palestinians or if Israel adopts less-aggressive economic policies in the West Bank, the number of impoverished living in Palestine will surely increase.

– Joseph McAdams

Sources: UNCTAD, PCBS, Reuters
Photo: GIJN

August 14, 2014
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