Archive for category: Global Poverty

Key articles and information on global poverty.

Personal Banking to End Poverty

personal-banking-to-end-world-poverty
2.5 billion people around the world, many of whom live in extreme poverty, are excluded from the formal financial system. Consequently, this exclusion results in the use of risky and expensive financial alternatives that slow individual and macro-level economic development. In the past, microcredit schemes have been used to solve the problem. Recently, a more holistic understanding of financial inclusion is emerging that focuses on savings, credit, financial literacy, and access to services. However, as these new systems take root, debate can be heard in regards to how the systems should be implemented, who the stakeholders will be, and how to ensure that this new financial ecosystem will function in the long-term.

These issues were addressed in early April at a Guardian conference where Banking on Change outlined the future of the financial ecosystem in developing countries. Banking on Change is a partnership between Plan UK, CARE International UK and Barclays that hopes to help around 400,000 people in 11 countries by developing access to basic financial services. The organization has used savings-led community finance groups in poor communities to help people save, build up assets, access loans from the community “pot”, develop financial literacy and eventually link into formal services. The scheme showed that due to erratic incomes, poor people have a high demand for savings accounts and products in contrast to credit lines and accounts.

Living conditions and finances aside, Ashok Vaswani, Barclays’ CEO for retail and business banking in the UK, Europe and Africa, believes that all people are the same. “People’s hopes and aspirations don’t vary too much,” he said. “We all have them, and people who live in much worse conditions than us have hopes and aspirations that are not very different to ours. They want to send their children to school. They want more for their children, just like we do. People with limited means still have the desire to move up, to put something away.” The difference is that people living in poverty do not have sufficient means to even start a savings account. Vaswani also believes that the money that potential customers save annually, about $58 multiplied by the 2.5 billion people living in financial exclusion, could be much more powerful if linked into the formal financial system rather than stashed under people’s beds.

Aside from defining the customer’s needs, financial literacy is important to the development of the financial ecosystem as well. Governments should do more in educating citizens, especially the youth, about their finances, commented Michaela Kelly, head of Plan’s Programme Delivery Unit.

As the demand for personal banking increases, the needs of potential customers will need to be assessed accordingly. While many view various forms of credit building important, savings accounts and related programs are just as important to the beginning of a financial ecosystem in developing countries. With the implementation of a financial system, both individual and macro-level, economic development will flourish and raise billions of people out of poverty.

– Kira Maixner

Source: The Guardian
Photo: Business Fights Poverty

Tracking Chinese Aid to Africa

Tracking Chinese Aid to Africa
Amidst a flurry of excitement and criticism, AidData released their latest project: a dataset tracking Chinese aid to Africa. This user-friendly free dataset has sparked debate among policy, practitioner, and academic circles.

The data compiles China’s official and unofficial projects between 2000-2011. During this time-period, China committed to 1,673 projects amounting to US$ 75.4 billion. For reference, the US committed US$ 90 billion over the same time-period.

In policy, critics point to the definitions of aid used by AidData in tracking Chinese aid to Africa. Under the OECD classification of aid, China has only invested US$ 1.1 billion over the decade. Academics and practitioners share concerns over the validity of the data and media analysis data collection method. Among the critics are Professor of international development at Johns Hopkins University, Deborah Brautigam, Duncan Green of Oxfam, and Andy Norton of Overseas Development Institute. Brautigam cites her research as having vastly different numbers resulting in reordering of the top recipients.

AidData responded to the critiques by stating that the dataset is a public good and practitioners should make their own conclusions about the policy implications. To the criticism that the data is incorrect and controversial method too risky, AidData responded that “media reports, though imperfect, are often the best means available to track Chinese development finance” citing Brautigam’s own critique as evidence. AidData stresses that the data is a work in progress relying on efforts from many organizations, individuals and experts to find and correct mistakes.

– Katherine Zobre

Sources: China AidData , Japan Times , Devex Impact , AidData Rejoinder to Rubbery Numbers,
Photo: The ChinAfrica Project

Your Old Clothes Could Be Hurting Africa

Old-Tshirts-Africa
How is it possible that your old clothes could be hurting Africa and its economy and you may not even know about it? The answer is not so simple.

Often times when Western countries have used, unwanted clothes they cannot get rid of, they end up a landfill. More recently though, charities that collect used clothes in North American and European nations can sell them to wholesalers who package and re-sell them to other countries, particularly those in Africa. Instead of decaying in a landfill, these clothes are desirable and affordable for people in lower-income countries.

“What’s the problem with that?” you may be asking yourself.

In the short-term it could be a win-win situation. People can donate their old clothes to charities, charities can sell them to earn revenue, third-party wholesalers can re-sell them to other countries, people in Africa have access to affordable, well-made clothing, and everyone’s happy. In the long-term, though, the African clothing manufacturers may not be so happy. If African countries continue to rely on Westerners giving away their old clothes, they may not be able to support their own clothing businesses within their borders. In fact, several Africa clothing industries have already gone out of business because of the cheap clothing coming in from other countries, which cuts jobs, decreases revenue, and increases reliance on Western nations.

So what can be done about this problem?

Some African countries are banning imported second-hand clothing to try to rebuild their own clothing businesses. But even with the ban on Western clothing, there is still access to hand-me-downs from other areas of the world – particularly China and the Far East, where clothing is even cheaper. Sylvia Owori, a clothing designer in Uganda, realizes the problem but is forced to accept reality. “As much as I don’t like second-hand clothes to be in the market, I don’t have an alternative,” she says. “I cannot make enough clothes to support a population of 33 million.”

– Katie Brockman

Source CNN

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The Open Borders Theory and Ending Global Poverty

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Immigration has always been a hot button issue, especially considering the comprehensive reform laws currently being debated by U.S. congressional leaders. However, what effect would the opening of the nation’s borders have on global poverty? According to several developmental thinkers, quite a bit, as adopting many of the mass migration policies called for in the open borders theory could hypothetically eliminate global poverty forever.

The researchers responsible for the open borders theory, drawn from such disparate fields as Mathematics, Economics, and Philosophy, argue that through the enforcement of a closed border policy, individuals are stripped of their basic human right of self-determination. Furthermore, by allowing migrants to move freely between nations, the net loss of labor productivity could theoretically double the world’s GDP through the mitigation of capital flow inefficiencies.

In regards to the open borders theory, developmental economist Michael Clemens noted that, “Immigration is very, very far from being a zero-sum game of their poverty or ours. Within ranges that even slightly resemble current migration levels, it is rather simply ‘their poverty or their prosperity,’ while we remain prosperous.”

Additionally, supporters of the open borders theory debunked the notion that a huge influx of migrants would depress the wages of developed countries based upon the net employment gains of the managerial sector. And by enabling efficient use of migrant skill sets underutilized by the inadequate facilities of the global south, developed economies would reap huge financial dividends.

Although the open borders theory is still in its infancy and years away from being considered as a realistic solution to global poverty, innovative ideas such as these help to encourage further debate involving current developmental policy. Michael Clemens remarked that, “Development is about people, not places.”

– Brian Turner

Source: The Atlantic
Photo: Women On The Border

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Israel’s Early Childhood Development Education Program

Israel's Early Childhood Development Education Program
Israel’s Agency for International Development Cooperation (MASHAV) recently completed training forty Ghanaian teachers in an early childhood development course. Thanks to the Embassy of Israel, Accra Metropolitan Assembly (AMA) and the Ghana Education Service (GES), over a hundred teachers have now been trained to teach preschool and kindergarten in Ghana.

The extensive program lasted for two weeks and focused on early childhood education. Teachers left the program with a higher knowledge of children’s learning principles, the needs of young children, what curriculum to teach, and appropriate games. By giving special attention to young students, Ghana hopes to build a better foundation for its future workforce and overall societal well being.

This partnership between Israel and Ghana will likely produce hundreds more early education teachers, something for which Ghana is desperate. Not only will more teachers be trained in Israel, but those who completed the program will go on to spread their new knowledge to other teachers in Ghana, thus creating a web of well-educated preschool and kindergarten teachers throughout the country.

The Early Childhood Development Education program is now in its fourth year in Kumasi and its second year in Accra. Both countries expect to have a long relationship as they continue to see positive results in Ghana’s early education system.

– Mary Penn

Source: GBN
Photo: Flickr

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Les Misérables

LesMiserables
The World Bank’s Director of Economic Policy and Poverty Reduction Programs for Africa, Marcelo Giugale, recently wrote about the current progress and development around the world in regards to extreme poverty. He explains that the 2013 World Development Indicators (WDI) have recently been released, evincing the status and evolution of people who live on $1.25 or less. Giugale’s detailed description of what it would be like to live on such a meager number really captures the essence of poverty and contrasts it with the expectations, advancement, and materialism of the 21st century. It allows the reader to visualize life in another light, one that is much different than what would be expected from the 21st century. Giugale writes, “If you had something that could be called a house — [it] would have no electricity, gas, running water or sewer.”

Out of the world’s human population of 7 billion, 1.2 billion live in extreme poverty. However, Giugale expresses his optimism in commenting on how it has been proven through one region’s shift away from poverty that rapid economic growth can tackle poverty. For example, in the past 20 years through 2010, China’s fast economic growth played the main and most prominent role in lifting approximately 700 million people out of poverty. Giugale also sheds light on the fallacy that the 2008-2009 global financial crisis raised extreme poverty; that is not true, according to Giugale. The financial crisis “if anything…only slowed [down] temporarily the downward trend that extreme poverty had been on.”

The Director also shares that although almost half of all Africans still live in extreme poverty, the rate of poverty declined from 60% in 1993 to 48% in 2010. Taking into account economic growth while noting that Africa is home for a third of the world’s extreme poor emphasizes that growth is not enough; that much more can be done. Finally, he comments that, according to the World Development Indicators’ predictions, 250 million people will be lifted from poverty by 2015 (mainly people in South and East Asia).

It is intriguing to note the title of Marcelo Giugale’s article, Les Misérables, because it denotes a certain theme. In Victor Hugo’s novel Les Misérables, the story’s structure is described as a “progress from evil to good, from injustice to justice, from falsehood to truth, from night to day, from appetite to consciousness, from corruption to life.” Those deep words parallel Giugale’s point that more can be done, and that it is not costly for governments of countries with plenty of natural resources to alleviate their people’s misery. It is time to progress from injustice to justice, from hell into heaven.

– Leen Abdallah

Source: Huffington Post, Liturgy
Photo: Google

Why Don’t People Give More?

Why Don't People Give More?
Sometimes it seems that every single non-profit and charity organization is after our money. Whether through sales calls, emails, social media campaigns, most people cannot go a single a day without a request for money or mobilization. Out of frustration and plain confusion many people may just call it quits and drop any efforts of giving to avoid creating a domino effect. However, there are six simple ways of easing the overwhelming feeling and encouraging people to give more. Peter Singer’s The Life You Can Save book and campaign discusses this very topic in hopes of creating excitement around donating time and money.

1- Identifiable Victim

With numbers of those living in poverty falling between one to three billion people, it’s hard to focus in on one victim that a donor’s money would benefit. Many organizations work in different areas and reach out to hundreds and thousands of people. To create a narrow scope, it is more effective to use case studies and personal stories of individuals that have benefited from the donations or will in the future. For example, the microloan organization kiva lists individuals, their stories, and the exact monetary aid they require.

2- Sense of Fairness

It’s the mob mentality at its finest… or worst in this case. In terms of money, people don’t want to be the only ones whose bank accounts diminish (quite dramatic of a worry, especially in the case of your average donor who stays below the 3-digit limit). Regardless, they’ll be more willing to give if they know others are as well. And when referring to others, it doesn’t mean reading headlines or watching videos of celebrities and other millionaires donating. Donors need to see people from their socio-economic levels, or below, opening up their wallets despite the economy, and giving.

3- Parochialism

“It hits close to home” is a common explanation many use as to why they donate to one cause and not another. A valid explanation but this should not limit the geographical scope of where a donor’s money goes to. Using tools such as videos or even bringing donors and donees together, if feasible, is something that will create a stronger human-to-human connection, regardless of where each of them are from.

4- Money

People love it. They want it. Songs have been written about it by Jay-Z and ABBA alike. But when it comes to actually using the word to ask for donations, it’s definitely not a fan favorite. Instead, try asking for time or support that can be given in other ways before asking for money. The key is to show that a difference can be made and that the organization isn’t just looking for financial help (although at some point it will need it).

5- Diffusion of Responsibility

Same with the idea of fairness and the ‘mob mentality,’  its important to illustrate that everyone can and should do their part in whatever way fits their lifestyle. Be careful to not guilt trip a person if a certain method or route is not their choice but be sure to touch on the more positive notion that humans have a responsibility and the privilege of helping those less fortunate.

6- Futility

Certain organizations or programs may not reach a lot of individuals but perhaps solve the problems of a group in a higher percentage. For example, while it only helps 50 people, an organization may help 48 out of those 50, a higher proportion than an organization that can only help 150 out of 12,000. Zoom in on these percentages and use them as a selling point to show how effective an organization can be. Who knows, they may give more time and money this way.

– Deena Dulgerian

Source: visual.ly
Photo: Pixabay

Plants Moderate Global Warming

Forest Air_opt
As any camping enthusiast will tell you, nothing quite describes the scent of that first refreshing breath of air they inhale upon waking in the middle of the forest. According to a recent study showing evidence that plants moderate global warming, there might in fact be a scientific explanation for the unusual characteristics of the atmospheric air experienced by campers.

Researchers from the University of Helsinki and the IIADA recently uncovered an ingenious feedback loop that exists between plants and higher atmospheric temperatures. How does it work? Plants moderate global warming through biological aerosols that originate from plants and – via atmospheric oxidation – stick to atmospheric aerosols, forming larger droplets that reflect sunlight and form storm clouds, thus decreasing temperatures.

In regards to evidence showing that plants moderate global warming, IIASA researcher Pauli Paasonen noted that, “Plants, by reacting to changes in temperature, also moderate these changes… Everyone knows the scent of the forest, that scent is made up of these gases.”

Although this amazing mechanism is presentlyonly able to mitigate only 1% of climate warming, the implications that plants moderate global warming is huge since future research can now focus exclusively the effects that such natural aerosols have on climate change, although many of their effects are currently scientifically uncertain.

Research highlighting how plants moderate global warming helps climatologists forge ahead into previously undiscovered frontiers of global warming and climate change. By having greater insight into the specific mechanisms involved in global warming, ongoing research can be aimed at both the construction and deployment of effective countermeasures.

– Brian Turner

Source: Science Daily
Photo: Classic Road Trip

Liter of Light

Liter-of-Light

Fiat lux! Let there be light! A timeless phrase that has been used since biblical times, in classrooms and even in movies has a more humanitarian and sustainable meaning since 2011. MyShelter Foundation, a ‘green-energy for all’ organization, began the Liter of Light project out of a simple idea to light up the homes of those who could not afford to do so themselves. With the help of MIT students, the technology of empty water bottles, water, bleach, and a slab of cement has taken the place of electricity and changed the lives of hundreds of thousands of people around the world.

The first installments began in Manila, Philippines. Since electricity rates are so high, families are forced to keep the lights off during the day. Due to the infrastructure of the homes in many of the poorer areas, however, light does not enter the homes during the day and families are left in darkness.

Building the makeshift light bulbs is easy and requires little to no maintenance. 1 liter plastic bottles are taken, filled with a small amount of bleach to keep the water and bottle clean and free of germs, then filled with water. When sunlight enters the bottle, enough light is produced that equals that of a 55-watt light bulb! The benefits of the water bottle bulbs are endless. Not only do they eliminate the need for electricity during the day, but they also reduce monthly electricity costs, are sustainable, help keep slums free of plastic waste, are easy to install, and add a greater sense of well being to the home environment.

Since 2011, Isang Litrong Liwanag (the translation of Liter of Light in Filipino) has spread to other countries such as Cambodia, India, Vietnam, Spain, Egypt, Peru, Kenya, the Middle East, and even Switzerland. MyShelter hopes to reach its goal of installing 1 million water bottle light bulbs by 2015.

– Deena Dulgerian

Source: A Liter of Light

UAE’s New Ministry of Development and International Cooperation

UAE Creates Ministry of Development and International Cooperation
ABU DHABI, United Arab Emirates – In March, the United Arab Emirates announced the creation of their Ministry of Development and International Cooperation. This new sector of government was established to coordinate all of the development and humanitarian efforts undertaken by the UAE. Since the country was established in 1971, the UAE has made efforts to assist in the development of poorer nations based on the belief that part of their wealth from oil and gas should be devoted to assisting those that are less fortunate. The Arab nation was the sixteenth largest humanitarian donor in 2012, based on the ratio of aid to the size of the economy of each country.

In the past three decades, the UAE has contributed more than $69 billion in loans, grants and developmental assistance in nearly 100 countries around the world. Most recently, the UAE contributed funds to help build hospitals and townships in Iraq, Palestinian territories and Lebanon.

One of the major projects undertaken by the ministry at this time is building refugee camps in Syria to house those displaced by the ongoing conflict. They have already spent over $81 million on Mrajeeb Al Fhood, a refugee camp in Jordan that houses over 25,000 people. The UAE has pledged more than $300 million to continue aiding refugees.

The new Ministry of Development and International Cooperation expanded the already existing Office for the Coordination of Foreign Aid. The purpose of the new ministry is to promote the UAE as a major donor and player in global human development. The majority of the aid that will be provided by the Ministry will be handed out by the government directly, although they are seeking to expand their work with international organizations.

-Allana Welch

Sources: WAM, Gulf Times, UAE Business Council
Photo: Tribune