Archive for category: Global Poverty

Key articles and information on global poverty.

Poverty in Guinea-Bissau

guinea-bissau-povertyThe Republic of Guinea-Bissau is a tiny country in West Africa that borders Senegal, Guinea, and the Atlantic Ocean. Its population is estimated at 1,600,000 people.

Guinea-Bissau is regarded as one of the poorest countries in the world as it has one of the lowest GDP per capitas compared to other nations. In 1998 alone, the GDP per-capita of Guinea-Bissau was only $173 compared to the per-capita GDP of the US at $29,683.

Today, the GDP per-capita of Guinea-Bissau has risen to $625.55. However, this level is still amongst the lowest in the world. Consequently, the population of Guinea-Bissau is suffering with a life expectancy of only 48 years in 2012.

Furthermore, Guinea-Bissau has one of the lowest Human Development Index scores. The poor nation ranks 176th out of 185 countries in 2013.

The economy of Guinea-Bissau relies primarily on agriculture, fish, and groundnuts as exports. In particular, the cashew nut exports have been vital to Guinea-Bissau. Yet in recent days, the exports have been on the decline. Cashew nut farmers have been unable to sell their produce as India, the prime importer of the nuts, has slashed its import size. Farmers are left holding tons of unsold cashews.

Guinea-Bissau’s economic depression is largely the result of a long period of political instability. The nation was a Portuguese colony until its declaration of independence on September 24, 1973. Guinea-Bissau was officially recognized as a country the following year following a socialist-inspired military coup in Portugal. From then on the country would be embroiled in civil unrest and several uprisings. Even now, the coup-prone country is severely embattled. In November 2008, the President of Guinea-Bissau was assassinated, following the death of the head of Joint Chiefs of Staff. In 2012, President Raimundo Pereira was deposed in yet another coup d’état.

Guinea-Bissau has yet to recover complete stability and its political chaos has severely affected its economic situation. Due to this very recent coup d’état, the country’s GDP has contracted 1.5% according to the African Development Bank Group.

However, projections for the future of Guinea-Bissau are not as grim as real GDP growth is expected to recover to 4.2%. Inflation, which had previously been at 5%, is expected to ease to 2.1%. Food imports are expected to decline with a rise in production and export of cashews for 2013.

– Grace Zhao

Sources: IRIN, African Development Bank Group, Info Please, Encyclopedia of the Nations
Photo: Wiki Spaces

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Israel Has the Highest Poverty Rate in the Developed World

Israel Has the Highest Poverty Rate in the Developed WorldA study by the Organization for Economic Cooperation and Development (OECD) reported that out of 34 developed countries, Israel has the highest poverty rate. The newspaper disclosed that 20.9% of Israeli citizens are currently living in poverty. In addition to staggeringly high numbers of impoverished people, Israel also has one of the largest inequality gaps in the developed world.

The OECD speculates that these struggling economic times have greatly contributed an increase in poverty rates as well as a greater gap between the rich and poor. The organization notes that the inequality gap grew more in the past three years than in the twelve years before then.

As expressed in OECD’s report, “With higher unemployment and lower returns from capital, the crisis not only weighted heavily on incomes from work and capital but also made their distribution more unequal.” There are only a few other countries that are rated higher than Israel in income inequality: Chile, Mexico, Turkey, and the United States.

Israeli Prime Minister Benjamin Netanyahu has recently been under scrutiny over his prodigal spending habits with taxpayer money. Among his expenses have been an 80% pay raise for himself and a $127,000 cabin for a trip to London. The struggling Israeli population heavily criticized his actions. The Prime Minister also plans to cut funding for benefits and child allowance, which is likely to put even more families below the poverty line.

Israel is among those developed countries that are particularly struggling with a massive inequality gap. The Israeli government must step in and create policies that will bring these people out of poverty and shorten the gap between the rich and poor.

– Mary Penn

Source: Huffington Post
Photo: Christoin

African Perspective on Foreign Aid

aid-hurts-africaDoes aid hurt Africa? When considering foreign aid in developing countries, the perspective of those receiving the aid is very often overlooked. The focus tends to be on those developed countries that give aid: why they should give aid, how they should give aid, and where it is most needed. This focus entirely disregards the attitudes and concerns of those receiving aid, government leaders and citizens alike. Discovering more on this perspective could in fact be key to assisting these nations in the most effective way possible.

According to Thompson Ayodele and other experts, Africans are for the most part skeptical about many of the initiatives put forward by western donors and international organizations. This skepticism is founded in the fact that many multibillion-dollar initiatives put in place by the United Nations have “fizzled” and left the African continent with small percentages of economic growth. In 2005, after $500 billion in foreign aid from 1960-1997 had been funneled into Africa, the budgets of some countries like Ghana and Uganda had been more than 50% aid-dependent.

It is interesting to note, however, that now in 2013, Ghana is among those countries that have met targets of the Millennium Development Goal before the 2015 deadline. The country as a whole has cut the number of hungry people by half as well as reduced to half the number of undernourished people between 1990-92 and 2010-2012. The GDP per capita has nearly doubled since 2005.

Still, there are other problems to consider other than the economic goals being achieved. David Karanja, a former Kenyan member of parliament, for example, has said that “Foreign aid has done more harm to Africa than we care to admit. It has led to a situation where Africa has failed to set its own pace and direction of development free of external interference.” The truth is that the majority of those giving aid or lobbying for aid have no experience with the reality of life in Africa or how this aid is really being put to use. Those who possess such experience should be brought to the forefront of the discussion.

A big problem that foreign assistance often encounters is corruption and the lack of transparency from governments, organizations, and corporations. This is why a commitment to transparency must be made in order to work around those who would funnel aid money away from where it is sorely needed. The important thing to take away from this differing perspective is the focus on making aid as effective as possible by creating strategies to circumvent corruption and commit to transparency in trade, taxation, and government processes. In order to assist in the most efficient way, it is imperative that we take into account the real needs and desires of those we are attempting to aid, rather than competing to see who can donate the most to the cause.

President Alpha Conde of Guinea weighs in on the topic commenting that they “do not want to live in dependence on the generosity of others when our resources can make us prosperous and strong.”

Impact of Foreign Aid on Africa and the World

  • In 1990, nearly half of the population in developing regions lived on less than $1.25 a day. This rate dropped to 14% in 2015.
  • The total number of people living in extreme poverty has declined by more than half from 1.9 billion to 836 million.
  • The number of underfed people has been almost cut in half from 23.3% to 12.9%
  • Primary school enrollment has risen to 91% from 83%.
  • Sub-Saharan Africa achieved a 20% increase in primary school enrollment from 2000 to 2015.
  • The number of primary school-aged children who were out of school dropped from 100 million to 57 million over the past 15 years.
  • The literacy rate of those between 15 and 24 years old has risen from 83% to 91%.
  • The proportion of girls in school in Southern Asia has risen from 74 girls for every 100 boys to 103 girls for every 100 boys
  • Women now make up 41% of paid non-agricultural employments, an increase from 35%
  • The under-five mortality rate dropped from 90 to 43 deaths per 1,000 live births and the number of under-five deaths dropped from 12.7 million to almost 6 million despite the boom in global population
  • The number of globally reported measles cases declined by 67% since 2000 and measles vaccinations helped prevent nearly 15.6 million deaths
  • Maternal mortality declined by almost half
  • New infections of HIV decreased by approximately 40% since 2000
  • The use of Antiretroviral therapy by AIDS patients increased from 800,000 in 2003 to 13.6 million which has averted 7.6 million deaths between 1995 and 2003
  • Over 6.2 million malaria deaths have been averted since 2000
  • The tuberculosis mortality rate fell by 45% saving an estimated 37 million lives
  • Official development assistance from developed countries increased by 66% in real terms since 2000 and 5 countries (Denmark, Luxembourg, Norway, Sweden, and the UK) exceeded the 0.7% Gross National Income UN assistance target
  • Internet usage is up from 6% in 2000 to 43% in 2015 connecting 3.2 billion people worldwide

– Sarah Rybak
Source: Ghana Business News, Nation of Kenya, CATO, United Nations
Photo: The Wall Street Journal

Poverty in Namibia

Poverty in Namibia

Located on the southernmost part of Africa’s western coast, Namibia is not recognized by most Americans.  Namibia invests heavily in its people’s education and health, possesses a free press, competitive business markets and one of the lowest rates of corruption in Africa.

However, it is marked by an extremely large economic divide among its citizenry.  Although it is technically a middle-income country, there is much poverty in Namibia as a result of income inequalities.  The UNDP rates the income disparity in Namibia as the highest in the world, at 70.7 on a scale of 0 to 100. The top 5 percent of Namibians control 70 percent of the country’s GDP, while the poorest half of the population controls only 3 percent of GDP.  Poverty is most prevalent in rural areas of the country and among women, as is often the case.  Women head around 40 percent of households in Namibia, and these households are the poorest in the country.  Half of the country’s population lives below the poverty line.

The government’s poor land redistribution contributes significantly to Namibian poverty.  During the era in which Namibia was ruled by the apartheid regime in South Africa, large white-owned commercial farms dominated agriculture with cattle production.  The Namibian government has now divided these farms up and given the portions to natives in Namibia, still committing them to cattle production.  Essentially, the government has reproduced the apartheid era farms, but in a weakened form, as they are smaller and no longer subsidized by the South African government.  Experts suggest that a shift towards tropical agriculture and crop cultivation rather than cattle production is the solution to these land distribution issues.

Namibia also faces a severe HIV/AIDS epidemic, in which 19.7 percent of the country is afflicted.  As a result, life expectancy in the country has declined from 61 to 49 years.  Promoting economic growth in the country is difficult due to an under-educated and low-skilled workforce.  The economy is subsisted largely on the export of primary resources for little profit.

USAID uses its “ABCDE’s of development” to combat poverty in Namibia:  AIDS and TB prevention, care, and treatment, basic education, community-based natural resource management, democracy and governance, employment creation/enterprise development.  Through PEPFAR, the US has given $42.8 million in funds for disease management and prevention.  USAID has also provided training to 4,000 teachers in Namibia in the hope of developing human capital to form a more skilled workforce.  USAID also promotes community-based democratic programs to help strengthen the country’s democracy and governance.

Namibia, rich in natural resources such as diamonds, uranium, lead, gold, copper, zinc, bountiful fisheries, natural gas, and some of the most spectacular and varied scenery and wildlife in the world, could greatly benefit the world’s economy. It also benefits from an extremely developed infrastructure and a politically stable government.  If the country can overcome its disease issues, poor land redistribution and income inequalities, it will be an asset to the global economy.

–  Martin Drake

Source: World Bank, USAID, IRIN News
Photo: Steps For Children

Poverty in Russia and the Wealth Gap

Poverty in Russia and the Wealth Gap
Russia is a massive country with a population of 143 million.  With 18 million people living in poverty in Russia, however, the issue of alleviating poverty has become a serious issue for the administration of President Vladimir Putin.  According to the Russian auditing company FBK, the minimum wage in Russia is grossly incompatible with the cost of living. The average monthly living cost is 210 US dollars/month in Moscow.  The average monthly salary for a minimum wage worker there is 155 US dollars.  Statistics from the government of Russia indicate that the wealthier classes have been hoarding wealth at an exponential rate while the abject poor remain stagnant.  There are currently 97 billionaires in Russia, and their wealth is only increasing.  The fall of the Soviet Union was the impetus for this growing income gap, as moguls were able to take advantage of an increasingly more free-market economy.

On a positive note, poverty levels have gone down in Russia since the late 1990s, when over 20% of the population was below the poverty line.  Russian sociologist Natalya Bondarenko notes that “15 to 20 % of Russians (in the late nineties) considered their income enough only to buy food as opposed to just 5 to 6 % of Russians who say the same thing now.”  President Putin has also alluded to a policy in which politicians as well as the heads of companies would be required to make their salaries public.  Hopefully, the government of Russia will take steps to confront the issue of extreme poverty within her borders.  In order for stability to be maintained in post-Soviet Russia, the Motherland must look after her children.

– Josh Forget

Sources: The Telegraph, Forbes
Photo: Guardian

Poverty in Madagascar

Poverty in Madagascar

Madagascar is the fourth largest island in the world and has a population of over 22 million. It has an incredible amount of biodiversity, a great potential for sustainable tourism, and boasts a deep, rich heritage. However, before the mid-1990s Madagascar was in a downward economic spiral. Poverty in Madagascar is rampant. Even though slow improvements have been made, a 2004 CIA Factbook estimate places 50% of the population below the poverty line — the World Bank’s estimate is that 70% of Malagasy live on less than $1 a day. Some of the biggest obstacles to poverty eradication in Madagascar are as follows.

1. Geography. Its placement in the Indian Ocean off the coast of Eastern Africa exposes it to a large amount of intense tropical cyclones. Floods caused by torrential rains are contributing to humanitarian crises the country faces relatively often. Furthermore, the area that Madagascar takes up is slightly less than twice the size of Arizona with a square kilometrage of approximately 587,000 km. Because of the island’s relatively prohibitive size, deforestation and erosion are grave environmental concerns.

2. Political turmoil both past and present. Deep roots of unrest persisted after French colonial rule ended in 1960; in the early 1970s, the military seized the newly independent government and imposed strict socialist economic practices. By 1982 the country needed external aid through the International Monetary Fund. Improvements were made, especially with Madagascar’s inclusion in the Africa Growth and Opportunity Act (AGOA), which allowed Madagascar duty-free access and access to aid funding. However, in 2009 then-president Marc Ravolomanana was deposed in a coup. Andry Rajoelina replaced Ravolomanana; the coup marked Madagascar’s exclusion from the AGOA due to human rights concerns, and donors all but suspended aid to the country. Today the political turmoil and threat of conflict also have driven many tourists from considering Madagascar a destination, halting the already-stunted tourism sector.

3. Disintegrating infrastructure. According to Euromonitor International, the capital city of Antananarivo is the only city on the entire island to provide good road infrastructure. Most railway transport along the island is on the eastern side, where the principal cargo port city of Toamasina is situated to the northeast of the capital city. The country is therefore heavily isolated even between major cities; the lack of ability to move goods and workers is severely detrimental. Furthermore, even transport out of the country by air is tenuous due to air safety and security concerns, according to Euromonitor International.

4. Severe water safety, sanitation and hygiene concerns. According to WaterAid Madagascar, over 18 million people do not have access to adequate sanitation in the country; 89% of Malagasy do not have access to improved toilets. As a result, Index Mundi asserts that the degree of risk is very high for major infectious diseases; waterborne diseases are common, such as bacterial and protozoal diarrhea, hepatitis A, and typhoid fever. Ultimately, the biggest obstacle that Madagascar faces now is its political instability. President Rajoelina’s government — and the way he acquired his power — has caused international aid to come to a halt. Until then, the burden for domestic development, strengthening the economy, and addressing public safety issues falls squarely on the shoulders of the already-financially strained government of Madagascar.

– Naomi Doraisamy

Sources: BBC, CIA World Factbook, Euromonitor International, Index Mundi, Water Aid
Photo: Wild Madagascar

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Camel Milk: The Future of Nutrition in Ethiopia?

Camel_milk_USAID

USAID is partnering with Somalia groups to form the Camel Milk Value Chain Development project. This project is part of the U.S. President’s Feed the Future Initiative in Ethiopia. Feed the Future is a project started by the Obama Administration that focuses on helping countries become self-sustainable through agriculture reforms and improvements. The goal of the Camel Milk Development project is to improve the production of camel milk and to make it more marketable and competitive in Ethiopian communities.

The camel milk initiative is projected to benefit 50,000 “targeted households” in the country. Abdifatah Mohamud Hassan, Somali Regional State Vice President, said, “The Camel Milk Value Chain Development project is an innovative project that addresses cultural wealth of the pastoralists and contributes to the Ethiopia Agricultural Growth and Transformation Plan.”

Once the project is underway, local farmers will be educated on camel productivity, which includes breeding, better feed, and improvements to the camels’ health. The last aspect of this strategy to increase productivity will be a main focus as USAID trains more animal health care workers. Another goal of the organization is improved camel milk quality. This will happen through extensive trainings that teach workers about proper sanitation.

Finally, USAID hopes to create a better market for camel milk by connecting local milk markets with larger milk networks. This will generate a more stable market for farmers, negating some of the uncertainty and stress that goes along with the agriculture sector. Along with a stronger market, USAID will improve hygiene, food safety standards, and infrastructure.

Given Somalia’s unpredictable weather patterns that often include drought, camels could prove to be a vital source of nutrients for a majority of the country. The USAID Ethiopia Mission Director, Dennis Weller, has even called camels the “animal of the future.” As camel milk becomes more common, those living in Somalia will experience better food security as well as economic independence.

– Mary Penn

Source: USAID
Photo: Mercy Corps

EITI Improves Transparency and Payment

EITI Improves Transparency and Payment
The G8 Summit in Northern Ireland on June 17 focused heavily on transparency and trade and brought the EITI — the Extractive Industries Transparency Initiative — into the spotlight. Immediately after the G8 Summit, it was announced that Italy and Germany would be implementing and piloting EITI, respectively, a step forward towards increased transparency for extractive industries worldwide.

Transparency for extractive industries is particularly necessary for developing countries that suffer from what is known as the resource curse– the trend for countries with high amounts of natural resources to be low in development. The resource curse is often perpetuated by irresponsible extraction processes that disrupt life in the host country and negatively impact its economy.

EITI, an initiative first introduced in 2002 by UK Prime Minister Tony Blair, focuses on transparency in the extraction industries — mining and logging being the largest ones worldwide — so as to address at least one element in the “resource curse”: the countries from which the extraction companies originate. While the initial implementation of EITI standards between 2002 and 2005 was aimed at voluntarily committing companies, by 2005 EITI standards took the form of “a disclosure standard implemented by countries.”

Stakeholders in EITI include over 70 of the world’s largest oil, gas, and mining companies, including Britain’s BP, America’s Chevron, Britain and Australia’s Rio Tinto, and Brazil’s Vale. The transparency standards include improved payment and revenue reporting on the parts of both company and host country. It aims to answer the questions, “How much are governments receiving?” and “Where does this money go?”

The G8’s commitment to and support for the EITI shows a continued dedication to improving transparency worldwide and addressing the resource curse. While EITI still faces obstacles such as ensuring members procure timely reports and that these reports are not so delayed as to prove entirely unhelpful. At present, 23 countries are considered EITI Compliant, and 16 have status as EITI Candidates including the recent additions of the Philippines and Honduras.

– Naomi Doraisamy
Source: Christian Science Monitor, EITI, Thomas Reuters Foundation
Photo: Christian Science Monitor

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Transparency International USA Inspires

Transparency International USA InspiresTransparency International USA, or TI-USA, aims to live up to its name by promoting much-needed accountability in governments and businesses, both at home and abroad.

The task of successfully eliminating global poverty is often precluded by entrenched corruption practices in governments and businesses in both the developing and developed world. TI-USA was founded in 1993 as a chapter of the greater Transparency International movement in an attempt to address this corruption and to “promote transparency and integrity in government, business, and development assistance.”

TI-USA reports that each year, bribery, fraud, collusion, and other various forms of corruption taint over $1.5 trillion in public purchasing. Billions of dollars in illicit assets currently flow out of developing countries that need the money to survive.

TI-USA not only views this behavior as unacceptable and immoral but sees the consequential economic, social and health effects that such corruption may spur. In corrupted governments, most of a country’s assets remain in the top levels of society, placing a greater financial burden on the country’s poor who are often deprived of education, nutrition, clean water and health care.

As a branch of an already well-established nonprofit organization, TI-USA’s chief goal is to make the United States a forefront actor in establishing anti-corruption laws across the globe turning first to addressing transparency issues within the U.S. government itself. By doing this, the U.S. can show its commitment to the anti-corruption goal by reforming its own shortcomings as a model for developing countries to follow.

TI-USA shows that in order to become a leader in global activism a country must live up to the standards it promotes abroad within its own national boundaries.

– Alexandra Bruschi

Sources: Transparency International USA, Business Wire
Photo: Flickr

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A Look at Lutheran World Relief

A Look at Lutheran World Relief
Lutheran World Relief has been offering emergency aid to people around the world for more than 60 years. The group formed in the aftermath of World War II, which rendered an estimated 20% of Lutherans homeless. In response to this need, 20 Lutheran churches in the US organized themselves to send aid to their fellow church members.

Most of the aid in that initial period went to Germans and Scandinavians, but LWR founders soon came to believe that they should distribute aid to people regardless of their religious affiliation. In the decades immediately following World War II, the organization sent emergency aid to the Middle East, Hong Kong, Korea, and Bangladesh. Currently, they reach out to people needing emergency help on nearly every continent.

Since then the mission of LWR has evolved even further from providing aid for emergency food, shelter, and medicine, to implementing a comprehensive sustainable development program. The organization now works to address needs in a number of areas, including health, agriculture, and the environment. In pursuing that mission, LWR regularly:

  • Helps farmers learn about new techniques and gain access to microcredit loans.
  • Partners with local communities to dig wells to provide clean water.
  • Educates people about malaria and other infectious diseases.
  • Encourages civic participation by fostering grassroots community organizations to help marginalized groups communicate effectively with their governments.

In addition, the groups on the ground emergency programs are designed to continue recovery efforts long after disasters strike.  LWR is committed to helping afflicted communities build resiliency and recover for the long-term.

Over the years, Lutheran World Relief has earned respect around the world for their efforts.  The group has one of the highest ratings from the site CharityNavigator.org, which rates organizations for their transparency and efficient use of donations. To learn more about Lutheran World Relief, or to donate to the organization, visit www.lwr.org.

 – Délice Williams

Sources: LWR, Charity Navigator
Photo: Lutheran World Relief