Archive for category: Global Poverty

Key articles and information on global poverty.

,

Poverty in Cape Verde

Cape_Verde_poverty

Cape Verde is a small archipelago island nation in the Atlantic Ocean off the northwest coast of Africa. The country is mired in absolute poverty, with 30% of its citizens below the poverty line. The World Bank estimates that 14% of the population is living in extreme poverty. With a crisis of this magnitude, the government of Cape Verde is dependent on the receipt of international aid to maintain relative stability.

Poverty in Cape Verde is precipitated by a number of factors, but the main inhibitors of economic growth are a gross lack of a natural resources and a limited economic base. Due to repeated droughts, Cape Verde is beleaguered by water shortages and poor soil. Due to a lack of domestic agriculture, over 82% of the country’s food supply is imported. The nation’s narrow economic base stems from over dependence on tourism as the sole source of economic revenue.

The World Bank has agreed to provide significant amounts of funding to Cape Verde and has developed an economic strategy to alleviate the poor conditions there. The World Bank’s plan is four-fold, involving an improvement in the quality of education and healthcare, a diversification of the economic base (exploiting tuna fishing as an additional source of income), an improvement of the already existing infrastructure, and the institution of welfare programs for the disadvantaged.

These changes will have to be implemented from the top down in order for them to be successful. The World Bank is working with the government of Cape Verde to implement these much needed changes. This combination of economic diversification, aid, and development will most assuredly provide a way for Cape Verde to rise out of extreme poverty.

– Josh Forgét 

Sources: The World Bank, The CIA World Factbook
Photo: Cape Verde Against Poverty,

Rice Farming Must Adapt to Climate Change

rice_farms_climate_change

Climate change is having a profound effect on coastal rice farming. The resulting increase in pests, diseases, water scarcity, and salinity has been devastating to farmers.

Research conducted over the past decade demonstrates a strong relationship between climate change and the prevalence of disease and pests in rice paddies. Crop stressors like irregular rainfall often increase the virulence of rice blights such as brown spot and blast. Extreme weather, like flooding or drought, forces farmers into asynchronous, or unseasonal, cropping. Such practices, along with the weather events themselves, often lead to pest population explosions.

Water scarcity is another factor affecting rice production. As rice requires a certain amount of water to grow, even less-severe droughts can take a toll on production yields. Climate change continues to cause more frequent and more severe droughts, and rice farmers are starting to feel the pressure of drying rice paddies.

As higher temperatures and lower rainfall cause a decrease in ground water, sea levels continue to rise and intrude into fresh water areas. These factors cause a noted increase in salinity. Rice, particularly higher-yielding hybrids, is only moderately tolerant of salt. Thus, increases in the salinity usually see a decrease in yields for the affected paddies.

Drastic decreases in production are causing some farmers to abandon their fields. Several governments and NGOs, like Practical Action, a UK-based development organization, are launching initiatives to help these rice farmers cope with the growing challenges of climate change.

Practical Action partnered with farmers in southern Sri Lanka, a country that has seen significant effects of climate change over the past 20 years. The organization participated in farmer-led trials of traditional varieties of rice to assess each type’s resistance to temperature, pests, and salinity. The varieties were held against standards of crop duration, plant height, grain quality, and overall yield.

Sri Lanka has over 2,000 traditional varieties of rice. Most of these varieties had been abandoned for modern rice types and hybrids, but new climate challenges are turning many farmers back to indigenous varieties. The traditional rice is nutritional, some even having medicinal properties, and according to tests are more resilient in the face of climate change.

In fact, of the ten varieties tested by farmers in the Practical Action program, four scored high enough to now be officially promoted through farmer organizations as hardy and saline tolerant. The traditional rice cannot, generally, produce the high yields of hybrids, but its resilience and popularity in the consumer market still enable a farmer to generate profit.

It seems that for an agricultural community faced with emerging climate challenges, revisiting traditional methods could be the best solution.

– Lauren Brown

Sources: Practical Action
Photo: International Land Coalition

Rising Debt Means Falling Aid

falling_aid_usa
While some economies may be taking the first steps towards recovery, the repercussions of the global economic crisis are still being felt in the majority of countries. And one of the biggest casualties of the continued recession could be progress on the Millennium Development Goals (MDGs). Increased spending over the last few years led to rapid progress on many of the MDGs, however, a recent report entitled “Putting Progress at Risk” by Oxfam International shows that the majority of developing countries are now spending well below the amount required to continue with progress on the various social issues promoted by the MDGs.

While cuts necessitated by the global economic crisis have been made by developing countries – in such areas as agricultural spending, maintenance of water facilities, and wages for teachers and nurse – the problem is exacerbated by the effect the economic crisis has had on developed nations.

The report tracks the spending of 52 developing nations by using data from the Government Spending Watch database. The data shows that these countries have lost a combined $140 billion in revenues during the economic crisis. Unfortunately, at the same time as revenue generation in these countries is declining, international aid is also falling. As a result, countries are being forced to choose between increased borrowing and rising debt, and cutting funding to their own development programs. According to the Government Spending Watch database, only 20% of these countries are meeting targets for agricultural spending, and 40% are reaching the level the World Health Organization recommends for spending on health.

This combination of rising internal debt, and falling external aid, has many developing countries trapped and unable to generate enough revenue to support development, and yet needing that development to happen in order to promote future growth. Developed nations must hold to their initial pledges for aid, otherwise all the progress so far seen could slip away.

– David Wilson

Source: Caledonian Mercury, Oxfam

Boosting African Economies

_africa_aid_growth
In their joint op-ed for the Washington Times, former Congressional representatives Howard Berman and Connie Morella refer to US development efforts, saying, “We’re not just talking altruism. We’re talking sound, smart business.”

Berman, a Democrat, and Morella, a Republican, collaborated the op-ed entitled “A Smart Investment in Africa”, which was published Monday, July 1 in the Washington Times. Their overall message: help the developing world.

The article pointed out how in this globalized age, our security and economy have never been more closely tied with that of the African continent. Over half of US exports go to the developing world. This fact, combined with the vast population of the developing world, makes these countries the biggest potential for growth of American businesses and innovations. Investments in the continent of Africa advance economic and governmental reforms, which give American businesses a better foundation with which to expand into the continent.

The former Congressmen also pointed out that, while Americans are often given an image of Africa as a continent fraught with conflict and despair, African economies are growing at an astounding rate, like much of the developing world. Seven of the most rapidly expanding economies in the world are in Africa. As these economies expand and Africans are lifted out of poverty, American businesses will be able to market their products to the vast amounts of new wealthier consumers.

The article also highlighted how important US investment in Africa is for America’s security interests. Extremist groups, such as Al-Qaeda and its affiliates, are looking for ways to take root in Africa, and countries without the economic capacity to build strong infrastructure or security forces are the most vulnerable to these forces. Investing in African economies gives countries the resources and stability to resist extremist influence.

The security benefits of bolstering African economies are exemplified clearly in The World Bank report entitled “Breaking the Conflict Trap” which argues that an unequal distribution of wealth exacerbates societal tensions and “increases the perception of relative deprivation.” Therefore, reduction of poverty in African countries will reduce conflict in these areas which are critical to US security interests.

The former Representatives pointed out in their op-ed on Monday just how important US aid to Africa is, not just for humanitarian reasons, but for the future of US economic and security interests.

– Martin Drake
Source: Washington Times, World Bank

Zimbabwe Election 2013: A Repeat of 2008?

zimbabweelections_opt
In recent years, aid to Zimbabwe from the United States has made important strides towards improving life for the people. USAID has supported anti-retroviral treatment, improved access to healthcare, and has even reduced the spread of HIV/AIDs to under 15%. Most recently we have been attempting to transform the country into a democratic nation in order to support growth and success. The people are trying to assist with this change, but the government may be getting in their way.

On June 18th, the Senate Foreign Affairs Committee gathered for a hearing regarding the upcoming elections in Zimbabwe. The 2008 elections were a disaster, flanked with repression and violence across the African country. As a result of that and of U.S intervention and aid, Zimbabwe’s president, Mugabe, signed a new constitution into law that divides the power between him and Prime Minister Tsvangirai and brings about a 2 term, of 5 years each, maximum for each elected president.

The good news is that this means the Zimbabwean people will finally have the chance to shape the government according to their needs, gaining health care and education reforms. The bad news is that the current government may not be so ready to hand over the reigns to the people.

Part of the agreement the U.S reached with Zimbabwe was that the elections had to be held by the end of July. And, while the elections could seriously improve the relationship between our country and theirs, rushing into things could damage any chances Zimbabwe has of actually making progress. Therefore SADC has requested that we give them more time to make sure everything is ready and the elections will be fair.

Acting Assistant Secretary of the Foreign Affairs Committee, Donald Yamamoto, brought forth his arguments before the other panel members. He cited the recent illegal arrests, detentions, and instances of harassment as evidence that efforts are already underway to intimidate voters and sway the election. “Zimbabwe must decide whether it will support a credible electoral process or continue to repress its people and isolate itself from the international community”. This decision does not just decide whether the people stay repressed in poverty, but also whether Zimbabwe becomes involved in trading and business with the rest of the world, including the U.S.

There has also been concern that without enough time, it will be less likely that all the new voters will be registered, inspection of voters’ rolls will take place, and that other needed electoral and democratic reforms will be adhered to. This would make the credibility of the election outcome very questionable and set back the governmental improvements another 5 years.

However, important changes are already underway. For the first time ever, the youth of Zimbabwe are getting together to debate politics and learn about the issues that affect them. If given the chance they could make a noticeable difference in the way things are done and how their country works with the rest of the world.

– Chelsea Evans

Source: Donald Yamamoto, Earl Gast, Dr. Todd J Moss, Reuters
Photo: Zimbabwe Election Watch

The Thai Government’s Costly Rice Subsidy

Rice Subsidy
For five decades, Thailand was the world’s leading rice exporter. In past two years, however, since the implementation of a costly rice subsidy program, the country has incurred a 4.4 billion loss in rice exports, thereby opening a gap that Vietnamese and Indian exporters have been able to exploit.

At the end of 2011, as elections approached, Thai President Yingluck Shinawatra decided to implement a rice subsidy benefitting four million farmers. By buying their rice at a price 50% higher than the world market price and thus increasing the farmers’ revenue, he ensured himself heightened popularity with the people.

The original idea, according to the Wall Street Journal, was for the plan to “…first function as a welfare handout by replacing private rice dealers with inflated government payments to farmers. Then, in phase two, the world’s top rice exporter would drive up global rice prices by withholding its crops from the market. Once prices rose high enough, Bangkok could recoup the investment by selling off its stockpiles.”

Unsurprisingly, this attempt to manipulate market prices failed as exporters from India and Vietnam rushed in to increase their share of rice exports and boost their own productivity.

In 2012, market prices remained low and Thailand lost its position as leading rice exporter to India, as its exports dropped by 37%.

Mid-June, the government announced a reduction of the rice subsidy from $485 per ton to $388 per ton, though the price still remained higher than the world market price. This 20% price reduction angered peasants, who constitute a majority of the governing party’s traditional electorate.

Monday July 1st, the government decided to reestablish the price of the subsidy to its initial level and reexamine the question in order to placate peasants who withdrew their demonstration threats.

The loss in Thai rice exports due to the subsidy can be evaluated at 35 percent between 2011 and 2013. In 2012 alone, Thai arrived in third position, exporting 6.9 million tons of rice versus 9.5 million for India and 7.8 million for Vietnam. The ill-planned subsidy program has been disastrous for Thailand so far, and promises to deepen government debt if the Thai government does not take action.

In the meantime, the government must quickly find a way to deal with the 17 million tons of Thai rice amassed in stockpiles. With little time left before the excess rice goes bad in one to two years, the government might already have to bring down prices in order to sell its surpluses, virtually guaranteeing that its investments will never be returned.

– Lauren Yeh

Sources: WSJ, Le Monde, Global Voices Online
Photo: Rice Wisdom

, , ,

“Nutrition for Growth” and Hunger Alleviation

Nutrition for Growth
With last month’s G8 Summit, and the ‘Nutrition for Growth’ summit hosted in London before that, a lot of the focus has been on large amounts of international aid earmarked to combat global hunger and malnutrition.

Small-scale, localized projects play just as large a role as international aid efforts, and possibly more beneficial. The original Green Revolution increased crop yields dramatically, but at no small environmental cost. If this large-scale intervention played its role, multiple small-scale projects could produce the same results.

One such project fighting food insecurity is the Soil, Food, and Healthy Communities (SFHC) program in Malawi. This program began ten years ago with efforts to educate local farmers and diversify their crops. The original aim of the project was to improve the health, food security, and soil fertility of poor households in Northern Malawi. This goal was additionally tied into participatory research, testing legume systems and looking at more sustainable approaches to achieving greater food security.

By introducing a variety of different legume options, as well as agricultural techniques, the quality and quantity of food can both be increased, as well as improving soil quality through organic input. This Ecohealth approach, focusing on the health of the entire system and humans’ interaction with it, can be simultaneously beneficial to the communities’ short-term needs, as well as allowing for longer-term sustainability.

Ten years on from the initiation of the project there have been many encouraging signs of success. The introduction of semi-perennial rotation systems, and the diversification of crops, led in some cases to annual return yields double that of the previous system. In addition to these straightforward agricultural benefits, a further goal of SFHC was to educate the local populace regarding nutrition.

The introduction of diverse legumes into the crop rotation system improves soil quality and yield, and also diversifies the local diet. This additional food production can then directly influence the health of the children of the community. As a result of this project, child malnutrition has been reduced by two-thirds over the past ten years in a hospital catchment area serving about 70,000 people and covering 600-square kilometers. This is largely due to farmers now producing soybeans, groundnuts, and other legumes, and incorporating them into the local diet.

– David Wilson

Sources: The Guardian, Winnipeg Free Press

Corporate Philanthropy at the Highest Level with Good360

Corporate Philanthropy at the Highest Level with Good360
For most people, shopping at a giant retail chain now comes with a high level of expectation. People want their favorite products on the shelves now, in adequate quantities. Rarely does one ever stop to ponder just how the most successful retail and grocery chains move such a large amount of varied product so quickly. The logistical processes involved are so fine-tuned and fast that the systems themselves bear admiration. What if those logistical success strategies worked elsewhere?

Nonprofit organizations the world over sometimes struggle getting provisions to those who need it most for a myriad of reasons; not enough donations, not enough people, slow legal channels. The list could presumably stretch on with no end. One nonprofit group has already solved the problem by employing much the same techniques retailers use to rocket products from the warehouses to the store shelves, and they’re doing it with the help and cooperation of private enterprise.

Good360, formerly Gifts In Kind, began in 1983 by accepting a donation of office supplies worth over $11 million from the company 3M and has never looked back. The nonprofit accepts corporate donations like this from a multitude of businesses who need to clean up their balance sheets by unloading unsold assets and backed up inventory. Transferring such donations to Good360, those companies also build a reputation for corporate philanthropy. Good360 then distributes these goods to a network of charities and other nonprofit groups from their own warehouses. Donations get to where they are most needed even faster. The added bonus is also a boon to the environment because the practice doesn’t involve landfills whatsoever.

Continually highly ranked by Forbes as an efficient charity, Good360 works with many top corporations. Most recently, as of October 2012, they were ranked 29 out of 100 charities by the publication. Good360 depends on $306 million in private support, while generating $311 million in total revenue, giving 99 percent of that to charity. They’re totally dependent on their donors and are 100 percent effective in fundraising.

According to Good360’s website, the firm works only on 1.8 percent of the total value of products donated, which is astounding considering that they’re able to expedite it to charities almost as fast as new products are delivered to stores. The process is so environmentally conscious and efficient that employees from larger, for-profit firms are allowed to learn from Good360.

In the last 14 years they’ve grown exponentially, forging corporate working relationships with well over 40 percent of Fortune 500 companies. They’ve gone to great lengths to increase corporate philanthropy and facilitate international seminars on it. Since 2009, Good360 has taken another technological step forward by joining forces with the American Trucking Association so that trucking organizations can donate transportation to aid shipping in the name of charity. Strategically, the move is brilliant because it strengthens an already strong, logistical network and has forged new working relationships.

In July 2013, Good360 named Chris Blake their new Executive Vice President (EVP). He was the former President of K.I.D.S., Kids in Distressed Situations, another nonprofit. He brings a career of expertise of successful fundraising in the nonprofit sector that meshes perfectly with Good360. Blake was elemental in fostering working relationships between community groups and major companies for K.I.D.S. This new hire increases not only business and operational knowledge but leadership capacity as well.

Good360 has done nothing but grow and improve since its inception. The innovative strides it has made are undeniable. Nothing less than success can be expected of their organization when faced with high demand for products globally. Good360 is a great example of what can be achieved using strong logistics for giving rather than buying and supports economic prosperity for all involved.

– David Smith

Sources: Good360, Forbes Top 100 Charities, Chris Blake Joins Good360
Photo: Photopin

, , ,

Zambia: Poverty and Promising Signs

poverty-in-zambia-borgen-project-poverty-and-promising-signs_opt
Known for its stunning natural beauty and variety of wildlife, the country of Zambia draws thousands of global travelers seeking adventure and awe-inspiring views in its world-renowned state parks, along the mighty Zambezi River, and at the famous Victoria Falls, a UNESCO world heritage site.  More than half of the country’s 752,000 square kilometers is arable land, and the country is rich in natural resources, especially copper, one of its major exports. Compared to many of its neighboring countries, Zambia has also been somewhat stable politically. Zambia made relatively peaceful transition from British colonial rule in 1964, and the country has been spared the kind of serious civil war that countries like the Democratic Republic of Congo have faced in recent years.

Zambia’s natural beauty and great agricultural capacity are a stark contrast to the economic problems facing the country today, however. According to World Bank figures, an estimated 60% of the country’s 13.8 million people live below the poverty line, with most of those in Zambia’s many rural areas. Life expectancy for the average Zambian is 49 years, in part because of the HIV/AIDS pandemic, which has ravaged the population. Just over 12% of Zambians ages 15-49 are infected with the virus, and UN figures show that about 1 million people were living with the disease in 2011.  One-third of the population is without access to clean water, and more than 25% of the country’s schools do not have access to clean water and proper sanitation.  The country is reportedly on track to meet Millennium Development Goal #2, but enrollment in primary schools is just under 72%.

Efforts to combat widespread poverty and its attendant health and social effects in Zambia have been comprehensive, involving a coalition of private and public, national and international organizations. Through USAID, the United States recently launched two new health programs aimed at addressing poverty and HIV/AIDS by empowering small farmers with new tools to make their farms viable and profitable. The programs have drawn praise from the Zambian government. Zambia is also making progress toward its Millennium Development Goals, reducing child mortality from 191 per 1,000 births in 1992, to 119 per 1,000 in 2007.  Extreme poverty in the country declined from 58% to 51% over the same period, and in 2002 the country eliminated school fees for basic education, taking an important step toward universal primary education. These indicators are promising signs that progress is indeed being made toward relieving the misery of poverty and disease in Zambia. They also suggest, however, that there is much more work to be done. 

– Délice Williams

Source: Lonely Planet, UNAIDs, UNICEF, World Bank
Photo: Presentation Primary Terenure

Oil, Inequality, and Youth: Poverty in Gabon

Gabon Inequality
Gabon, the oil rich Central African country, continues to struggle with widespread poverty. Dependent largely on oil and natural resources including timber and manganese, Gabon’s economy struggles to attain sustainable methods of growth.

With 50% of the GDP reliant on oil sales, the necessity for economic diversity stems from the post-peak levels of oil drilling and the sharp depletion of oil production within the country.

Despite an above average GDP/capita of $17,300 and a status as an upper middle income economy, Gabon continues to face large income inequality. According to the African Development Bank (AFDB), one third of the population lives below the poverty line, with 13.2% living in severe poverty. This conflicts greatly with the label of upper middle income status.

To pinpoint poverty in Gabon, the Multidimensional Poverty Index (MPI) allows us to understand and compare a country’s poverty levels with 3 dimensions: education, health, and standard of living. Conducted by the Oxford Poverty and Human Development Initiative (OPHI), the MPI shows us that 35.4% of the population live in poverty with limited education, nutrition, and a low standard of living.

The universally understood poverty measurements of US $1.25/day, US $2/day, and the National Poverty Line provide a more in depth view of the varying levels of poverty. OPHI found that 4.8% live on less than $1.25/day, 19.6% live on less than $2/day, and 32.7% live below the National Poverty Line.

To further understand the large percent of impoverished Gabonese we must look into the wealth disparity and unemployment. The biggest drawback of an undiversified economy dependent on commodities is limited jobs within the sector. With such a high percent of GDP due to oil drilling, few Gabonese benefit from the sector. This lack of employment in an undiversified economy manifests itself in an unemployment rate of 21%.

Along with unemployment, two other issues factor into Gabon’s development: the large proportion of youth in the country and high urbanization. The AFDB found that 35.6% of the population is under 15, with 60% of that demographic unemployed. They also learned that nearly 86% of the population resides in urban areas, meaning that more than one third of the population lives in the capital city of Libreville.

In spite of these shortcomings, President Bongo Ondimba has begun work on increasing transparency and Gabon’s attractiveness to investors. In April 2010, the country began its attempts to improve the diversity of the economy. To accomplish this the government started to develop the “energy, mining, forest, tourism and agro-industrial potential.” Not forgetting the financial plight of its poorest citizens, the government has also raised the minimum monthly wage and created “solidarity allowance” to benefit very low-income workers.

– Michael Carney

Sources: African Development Bank, CIA World Factbook
Photo: Africa Review