Archive for category: Global Poverty

Key articles and information on global poverty.

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Who Are the Bottom Billion?

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One billion of the poorest people on the planet embody an enormous obstacle for nations today. Countries suffering from extreme poverty, overlooked and undervalued, are examined thoroughly in Paul Collier’s book, The Bottom Billion. As a professor of economics at Oxford University, Mr. Collier is well versed in the financial implications of poverty on the world as whole. Everyone who has read a history book or seen the television show Game of Thrones knows that when societies lack a leader and structured laws, chaos ensues as the fight for ultimate power begins. This situation is mirrored in the corruption consuming countries all over the world, and they are highlighted in Collier’s book.

According to Paul Collier, the 8 industrialized nations, known as the G8, will have to make a priority out of developing laws to help these ‘bottom billion’ populations. This group consists of the United States, Germany, the United Kingdom, Italy, Japan, Canada, France, and Russia. Protecting endangered states against corruption, greed, power struggles, trade resources, and more will have to become a main focus for stabilized nations in order to help eradicate global poverty.

Claiming that there are four traps countries fall into that lead to a spot in the ‘bottom billion,’ Collier lists the culprits as natural resources, corrupt neighboring nations, negative governing, and violent conflicts. No country has the ability to generate more natural resources than it already has, so creating laws that govern trade policies is one of the only ways to help states in that situation.

One suggestion offered by the author to reverse the destitute situations of poor countries is military interference. He claims that foreign financial aid is not enough to help on its own. Military force and strict legislation on corrupt leaders and factions are required to pull countries out of expensive civil wars and violent day to day lives.

Main goals of the book include debunking popular myths about global poverty and explaining why the U.S. and other stable countries need to make aggressive changes to prevent unstable nations from ‘backsliding’, or getting deeper into a state of distress than they presently are. China and other societies are doing so well on reducing global poverty that more aid is offered because they seem like a more appealing investment that is likely to succeed. Less stable countries do not look like a good fit for aid and are shortchanged by potential donors.

Simultaneously educational and inspiring, Paul Collier’s book was first published in 2007. Collier has spoken at local and national forums about the importance of forming a solution to these ‘bottom billion’ people that is as complex as the problem. Spreading awareness and correcting misconceptions the general public may have about poverty is the first step in attempting to fix it. Outlining how these countries become part of the ‘bottom’ in the first place helps clarify the intricate situation that has been created and how the way to save these people must be equally intricate. The Bottom Billion can be purchased from Amazon.com, Barnes and Noble, or wherever books are sold.

– Kaitlin Sutherby

Sources: TED, Amazon, The Guardian, Oxford University Press, AusAID
Photo: Bahai Forums

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The Case Against Gift Aid

The Case Against Gift Aid
Initiated less than forty years ago, the UK Gift Aid incentive aggrandizes donations received through select charities by providing tax deductions to the donor.

By means of Gift Aid, charities are able to reclaim the basic tax rate (20%) of the donation at no cost to the donor. For example, if an individual donates £10 using Gift Aid, the charity itself receives £12.50. With non-monetary contributions, the original tax is added back in to the overall value of the item. Thus, if a table valued at £100 is supplied, the charity is able to retain the item at £125.

However, before one is eligible to provide a Gift Aid donation, a form documenting basic personal information such as name, home address and information about the designated charity is required. Furthermore, this form is rather versatile in that it can be applied to future donations as well. On the surface, Gift Aid appears ingenious and innovative, and in many ways, it is. Yet, like many other programs wrought by good intentions, this incentive should be wary of also being susceptible to corruption.

For one, Gift Aid is plagued by complexity and ambiguity in its guidelines and operations.

Revenue and Customs declare that the donated items are in fact the possessions of the donor and the charity in question acts as a mere representative. Therefore, it is the donor — not the organization — who has the authority to not only give all or a portion of the sale’s proceeds but also to retain all or a portion of the profits. Meaning, an individual may decide to utilize Gift Aid out of greed and a personal, profit agenda rather than benevolence and an honest desire to give back to others.

The mandatory Gift Aid forms are composed in such a manner that donors are not held accountable for whether proceeds are bequeathed to the charity or not. Thus, an individual could legally sell his or her belongings using the Gift Aid incentive and keep all of the proceeds — leaving the charity, which handles the actual selling of the item, bereft of any profit.

According to the Institute of Fundraising, “the goods are the property of the owner until they are sold, and after they are sold, [the owner] has the right to keep some or all of the proceeds.” Although individuals who are initially willing to sell their personal belongings under Gift Aid may not initially expect to monetarily gain from the transaction.  Because this gaping loophole still exists, the incentive may be vulnerable, or opens an opportunity with the advantage, to misuse.

– Phoebe Pradhan

Sources: HM Revenue and Customs, The Guardian
Photo: Vintage 3D

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Palmetto Medical Initiative to Build Hospitals

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Palmetto Medical Initiative (PMI) — a global health nonprofit — announced its $1.5 million Revolutionizing Global Health campaign, which aims to build five medical centers in East Africa and Central America by 2015. $1.2 million has already been pledged from lead donors Darla Moore, Seacoast Church and others. The group of donors are counting on individuals and corporations to raise the remainder before Dec. 31, 2013.

Founded in 2009 by Dr. Ed O’Bryan, a physician at MUSC, and Matt Alexander, an entrepreneur and nonprofit executive, PMI was created as a permanent health care solution for impoverished regions.  In 2011, PMI opened its first hospital in Masindi, Uganda. Within 13 months of opening, the hospital achieved self-sustainability and has served more than 50,000 patients. The typical doctor visit costs patients $2, making it possible for more than 98% of all patients to cover the entire cost of their care.

“I invite our community to join me and support PMI’s campaign,” said Darla Moore, financier, philanthropist and one of the lead contributors to the current campaign. “On a mission trip with PMI in 2009, I saw firsthand the desperate health care needs of so many people. PMI has proven its ability to provide the same quality health care we value in the U.S.”

The regions selected by PMI for the Revolutionizing Global Health campaign lack basic quality health care and, all in all, are some of the poorest corners of the world. These areas have exceptionally high mortality rates, widespread disease and low life expectancy rates. With the contribution of generous donors, the campaign will be up and running for the new year, and represent a prominent step forward for the growth of global health.

– Sonia Aviv

Sources: Post and Courier, Moultrie News, ABC News
Photo: Giphy.com

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Aid Uses: Well-being or Market Growth?

Aid Uses Well-being or Market Growth
It is an important question that continues to factor in how each relief agency uses its funding: whether aid should be used mainly to stimulate economic growth or to provide for the basic needs of struggling and vulnerable people.

The history of international aid seems to have been forged by colonizers like Germany, France and Britain providing support to foster economic development in the colonies.

This system has survived to this day, but is it the right system? In other words, does it provide the most good to the most people? If aid helps build economies, in many senses it goes from the top down, as money is distributed from the private sector to employees. However, much can happen to the money as it trickles down.

It would seem that the best thing would be to cut out the middleman and give the money directly to the institutions that know the impoverished intimately and have the ability to provide for the needs of the people. Following the Haitian earthquake in 2010, only 10% of the $6 billion in aid was given to the Haitian government.

National and local institutions are essential in providing basic amenities to the poor, such as healthcare and clean water.

Instead, funding is being channeled into dead investments, such as job training for jobs without living wages. Relief agencies need to partner with local institutions with the goal of eventually handing off the responsibility of distributing the funds if they hope to make a lasting and beneficial change in the lives of the poor.

The food, medicine and supplies that are given to the world’s poor from NGOs only do so much, whereas creating sustainable healthcare and clean water establishments have much greater potential for curbing poverty. It is a reflection of the proverbial phrase ‘Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime.’

However, there is much to be said for stimulating local businesses. The success of the Marshall Plan should offer us an example of what can happen when aid is invested into market growth the right way. The Marshall Plan provided loans for local businesses, which were paid back to the governments, who in turn used it to strengthen commercial infrastructure. Furthermore, ensuring local businesses could succeed was a prerequisite in qualifying for the plan. With this strategy the Marshall Plan helped rebuild the economies of Western Europe.

Although the problems faced by the world’s poor stay the same- lack of food, housing, healthcare, clean water, etc.- the potential resources that can help are different. This is why results-based programs are so important. Given proper information, relief agencies are better able to fulfill the needs of the poor. The best solutions seem to happen when donors partner with national and local institutions to attack the underlying barriers that exist in moving out of poverty.

– Jordan Schunk

Sources: Australian Broadcasting Company, Businessweek, Foreign Affairs
Photo: Giphy.com

11 Essential Steps for Raising Poverty Awareness

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1. Stop Fantasizing

Determined to start the greatest advocacy movement in your city? That’s great! But make sure your plans aren’t entirely in your head. Make sure to get them down on paper and keep a realistic idea of an outcome.

2. Start committing

Remember, fundraisers don’t run themselves.  They require a good deal of time and energy to carry out. If you don’t think you can do it on your own, get others involved.

3. Start talking

Be active. Talk to members of the community. People only give to causes they know about. Inform the local media of your plans.

4. Visualize the process, not the outcome

Fundraisers take a lot of planning and it’s easy to become overwhelmed. Take it step by step. As you get closer to the end, let the overall goal give you the motivation to push through.

5. Avoid the slip-up effect

Everyone makes mistakes or slip ups. When something doesn’t go as planned, don’t give up. Take a break, reevaluate the situation and return to it when you’re ready.

6. Avoid procrastination

Be proactive. Don’t quit before you even begin. Make sure to set self-deadlines to avoid becoming tired and overwhelmed.

7. Shift your focus when needed

If the big picture causes feelings of dread and panic, calm down. Focus on the small steps and take it one task at a time. If you are trying to raise funds, shift the focus from the amount of money needed from donors. Instead, highlight the items and services that will be provided through donations.

8. Be yourself

Don’t become so wrapped up in your cause that you forget yourself and run on auto-pilot, constantly spitting out facts and numbers. Let others see your passion.

9. Keep the end goal in mind

You plan to raise $3,000 for an orphan in South America, but you’re becoming stressed on the minor points, like reserving a booth, finding tablecloths, baking cupcakes, etc. Take a breath and remember your reason for all the madness – to make a little girl happy.

10. Know when to stop

Have a solid plan to get people involved, but it falls short once you’re in public? Know when to take a break. Return to the drawing board. Trying to persuade a certain individual to give, but they have an argument for every fact? Take some time and come back later to discuss your cause from another viewpoint.

11. Have contingency plans

It is important to know the different possible outcomes of your fundraiser/awareness campaign. You could raise way more than you ever hoped to or you can raise $10. Be prepared. Have backup plans set in place and remember to practice responses for a variety of situations to avoid surprises.

– Jasmine D. Smith

Sources: Psy Blog, Poverty Living

Hidden Cost of Energy: Fuel Subsidies

Hidden Cost of Energy Fuel Subsidies
Nobody wants to pay more for gas.

Fossil fuels account for the vast majority of energy production, and, as non-renewable resources, the price has steadily increased for energy as supply dwindles and demand has surged.  Throughout most of the world, especially the richest nations, the true cost of energy is not seen due to a wide array of fuel subsidies and energy “support.”

There is not much agreement on what exactly constitutes a fuel subsidy but, all seem to agree that a lot of money is being spent on supporting various energy industries by artificially reducing the direct cost of production and consumption. So, while many tactics are employed in reducing energy costs, very few countries accurately report what they spend. Further, assessing the fiscal damage to the environment as well as the lack of funds generated by not imposing taxes (such as those on carbon emissions) become even trickier to estimate.

The International Monetary Fund estimates global fuel subsidies at 1.9 trillion USD, or 8 percent of all governments’ revenue. These estimates are extremely conservative, though, considering the dollar amount they use for the social cost of carbon, $25 per ton, is less than a third of what the UK and independent analysts have found. Also, the estimate does not include the vast majority of energy producer subsidies, only looking at consumer subsidies for oil and coal.

The impact of fuel subsidies is far-ranging. Pre-tax subsidies, or those that are direct cost reductions from the government to consumers, come at a global cost of 480 billion USD according to IMF’s report on 2011’s data. These are funds that are being deprived from social programs for urgencies such as roads, water distribution and poverty alleviation.

Subsidies are often unequally distributed. In developing countries, the IMF found the top fifth of societies in household income reap six times the subsidies of anyone else. The cost of these subsidies is offset by increased prices of other goods and services –resulting in a 6 percent decrease in income for every $0.25 cost decrease per liter.

Artificially increasing demand and consumption for fossil fuels reduces investment and growth in alternative fuel sources as much as the growth of many other markets — especially, exports.

Though developing countries appear to receive the most negative impact, developed nations such as the US and Russia spend the most through post-tax subsidies. Estimates on US subsidies range from $10 billion to $52 billion and do not include any of the associated health or environmental costs.

So, what can be done?

Various countries have successfully phased out tax reduction programs in the coal industry such as Poland, Germany and most developed nations do not offer pre-tax subsidies.  Unfortunately, little progress has been made on oil subsidies, which account for over 2/3 of the total. Developed countries will have to continue to lead the charge in reforming these harmful economic policies.  Transparency to the accurate amounts of what is actually being spent and to whom the money is going to may very well be the first step toward achieving more effective means of viable economic stability and sustainable progress in the use of depleting resources.

– Tyson Watkins

Sources: IMF, IEA, Oil Change International, Grist, BBC News, Climate Progress
Photo: Giphy.com

Global Poverty Threat to U.S. National Security

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The volatile national security climate resonating throughout the United States is fickle, and at times hostile. Political partisanship clamors and clashes against the tide of uncertainty – an uncertainty that resides deep within the veins of the American people.

In the midst of this madness, where should efforts of national security be focused? Global poverty remains rampant and begs the question: does the cure for our own security begin with aiding in the security of others? According to the Pentagon’s “3Ds” highlighted by the Borgen Project – Defense, Development and Diplomacy – it is in the best interests of U.S. national security to focus energy on combating global poverty.

Vincent Ferraro, professor of international politics at Mount Holyoke College, spoke candidly on this issue in his publication, “Globalizing Weakness: Is Global Poverty a Threat to the Interests of States?”

“While there is no necessary trade-off between economic growth and environmental protection in the long run, a poor state needs significant outside resources to realize both objectives simultaneously,” Ferraro stated. “This situation will only worsen over time, as poorer and more populated states become more integrated into the global economy and adopt the industrial techniques of the richer states.”

The United States is an essential part to a whole interconnected entity. This is referred to simply as the international economic system. The dichotomy between poor and rich nations is linked to, but not directly responsible for, national security issues such as global terrorism.

Combating poverty may be the first step to begin building a more unified global network of national security, beginning with a more powerful nation such as the United States.

The Global Poverty Project quotes the National Security Strategy to describe the cost of this dichotomy: “America is now threatened less by conquering states than failing ones.”

Military personnel and international intelligence cooperation agrees that although combating global poverty may not be the outright solution to violent conflict, it can be a method by which to better utilize global diplomatic unity.

According to the Borgen Project, “84% of military officers said that strengthening non-military tools, such as diplomacy and development efforts, should be at least equal to strengthening military efforts.”

Global poverty is the antithesis to worldwide security and peace, specifically when rich and poorer nation-states are unfairly divided economically without a reasonable process of growth.

The Global Poverty Project encapsulated this idea in stating, “Violent conflict is development in reverse. It destroys societies and is a shortcut to extreme poverty.”

The ongoing concern of national security is not only a diplomatic issue but also a vulnerable look into the realm of the human condition. Perhaps it is in the providing basic necessities to those less fortunate where feeling safe can once again become a social truth.

– Lance Moore

Sources: ECSP, Borgen Project, State Department, Global Poverty Project
Photo: The Daily Mail

Women and Photojournalism: Lynsey Addario


With cameras and bravery as their primary tools, photojournalists risk their lives to raise awareness about global suffering, far removed from the headquarters of organizations that award them for their efforts.

Lynsey Addario, a Pulitzer Prize-winning American photojournalist, has dedicated her life to covering conflict, war, and poverty around the world.

Featured in The National Geographic Society’s “Women of Vision” exhibition, Addario is one of 11 female photographers that have been selected to showcase the female version of “National Geographic storytelling.”

Addario has been kidnapped on two separate occasions whilst covering war-torn places – the first of which was in Iraq in 2004, and the second in Libya in 2011.

According to an article co-written by Addario, she and three male journalists were kidnapped in 2011. Addario’s first comment to her colleagues during the ambush that initiated their six-day long ordeal was, “God, I just don’t want to be raped.”

Gender did not stop the soldiers from beating Addario.

These experiences and acknowledgement of gender vulnerability are evident in the photographic collections available on Addario’s website. They range from documenting breast cancer in Uganda, to rape in the Democratic Republic of Congo, and the refugees of Syria.

Each photograph is captioned with the names and stories of each subject, highlighting humanity amongst chaos in poverty and conflict-ravaged locations.

Within the patriarchal societies in which she has worked, Addario believes her gender has allowed her access to places and people that her male counterparts would be denied.

The motivation that drives Addario’s work is the importance of telling these stories of suffering to the American public, as well as the daily life that continues against the backdrop of conflict.

With a similar objective, Hazel Thompson, an award-winning British photojournalist, immersed herself in the red-light district of Mumbai for 11 years to produce “Taken.”

“Taken” is an e-book and photo documentary that Thompson hopes will address what she describes as an “emergency” on the streets of India, Nepal, and Bangladesh.

By capturing the daily impact of sex-trafficking on young women and children, Thompson has created “a body of evidence” that cannot be denied or ignored by policy makers who, according to Thompson, have historically taken an apathetic approach to the problem.

“Taken” is also an educational opportunity and a prevention tool that Thompson is working to share with children living in poor villages, who are often targeted by sex-traffickers.

The profits from the project are donated to the Taken Campaign for Bombay Teen Challenge, an organization dedicated to the rescue and rehabilitation of the victims of Mumbai’s sex industry.

“Women of Vision” can be seen at The National Geographic Museum in Washington, D.C. October 10, 2013 – March 9, 2014.

The exhibition will go on to be featured at various venues across the U.S. until 2017.

“Taken” by Hazel Thompson is available on ibooks.

– Zoë Dean

Sources: PBS, New York Times, Lynsey Addario, Women News Network, Hazel Thompson
Photo: MacArthur Foundation

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Google’s Project Link to Connect in Uganda


Google is joining the quest to bring parts of the developing world that are not yet online up to speed, and the parts that are, to a much faster speed. Google’s Project Link initiative will build fiber-optic networks to assist in connecting the last few billion people around the world to the internet.

Three million residents in and around Kampala, the capital of Uganda, will be the first to experience Project Link.

The country’s president, Yoweri Museveni, has publically shown disinterest toward developing technology. However, in the case of Uganda, the initiative is predicted to enhance the services of pre-existing providers, rather than create new ones.

According to Google, the city currently has what is described as “pre-broadband” speed, and “unreliable connections.”

Kai Wulff, Google’s Access Field Director, took to the company’s blog to explain how Project Link will strengthen the supply chain between undersea cables that deliver data to Africa and internet service providers.

Testimonials from Kampala residents, featured in a Project Link promotional video, cite the initiative as the way to encourage development, trade possibilities, and improve education. They describe it as being more than just a tool with which to grow business, but also as a vision of prosperity for Uganda.

Project Link is being compared to Facebook CEO, Mark Zuckerberg’s Internet.org initiative – another attempt to bring the developing world online.

Both Facebook and Google run the risk of appearing exploitative of new markets and ultimately pursuing profits under the guise of philanthropy. A possibility that does not seem far-fetched, considering only 16% of Africa’s population currently has Internet access.

However, the general consensus at the recent Transform Africa Summit, suggests that corporate motivations are not the primary concern for those invested in Africa’s development.

Government officials discussed the importance of public and private sectors working together – something that is evident in Rwanda, where the summit was held.

A successful example of this, is Korea Telecom’s heavy investment in Rwanda. The collaboration between corporation and country has even enabled a 4G broadband rollout to 95% of the population.

It seems Google is following suit. Project Link is not the only endeavor the multinational corporation has undertaken in Africa lately. Its navigation system has been slowly extended to multiple developing countries on the continent.

As of December, owners of Android phones in Somalia, Burundi, and Djibouti could access the voice-guided Google navigation system on their phones.

– Zoë Dean

Sources: Wired, Google blog
Photo: Occupy Corporatism

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Obesity Growing in the Developing World

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The number of overweight and obese people has grown drastically in the past 30 years, going from 23% of the world’s population in 1980 to over a third today.  Surprisingly to some, the majority of overweight and obese people live in developing countries.  As globalization spreads and countries go from low-income to middle-income, people have more money to buy food.  At the same time the access to cheap junk food full of fat, carbohydrates, sugar and salt is becoming readily available.  As food gets tastier and cheaper, families in the developing world are consuming these products and steadily gaining weight.

Sharada Keats and Steven Wiggins from the Overseas Development Institute in London released a report on January 3rd called, “Future Diets.”  This report summarizes research that shows that diets are changing.  As incomes rise in the developing world people are moving from a diet that consists of cereals and tubers to diets that include meat, fat and sugar.

The portion sizes that people are eating are also going up.

These changes mean that the price of animal products will go up all over the world while prices for grains will go down.  The agricultural crisis of not having enough grains to feed the poor may be replaced by a public health crisis as more people move to eating unhealthy diets.

Obesity is increasing throughout the developing world.  Further, reports have noted that obesity has tripled in the developing world in the past 30 years.

Mexico is a good example of how globalization and higher incomes are impacting diets and waistlines of middle-income countries. In 1980, fewer than 40% of Mexicans were overweight or obese. Today that figure is more than 70%.  In 1980 there were 250 million overweight and obese adults in the developing world. In 2008 those numbers have grown to 904 million.

This is a global health concern as unhealthy diets and weight gain put people at a large risk for a wide range of health conditions including cancer, cardiovascular disease, and diabetes. This is going to place an increased burden on low and middle-income countries with already struggling health care systems.  It will also cause economic difficulties and increased health care costs.

At the moment there seems to be little interest among the public and leaders to take action against the growing obesity problem.  Keats and Wiggins suggest that as countries begin to face the serious health implications and economic problems associated with obesity they may consider investing in public education and policy changes as well.  Conclusively, Keats and Wiggins suggest for a resolution that is a moderate combination of education, prices and regulation measures.

– Elizabeth Brown

Sources: NPR, Overseas Development Institute (ODI), BBC