Archive for category: Global Poverty

Key articles and information on global poverty.

Madagascar’s Millennium Village is Independent

Madagascar's Millennium Village is Independent
Madagascar’s Millennium Village, Sambaina, is functioning independently after five years of support and development from the UN Development Program and the Millennium Villages Project. With a donor investment of $400,000 per year, or just $50 per person per year, living conditions have improved dramatically.

The country of Madagascar has suffered in the last five years as a result of political upheaval. Following a coup in 2009, foreign aid to the country has remained frozen, and the government does not have sufficient funds for social programs or the salaries of civil servants. In the commune of Sambaina, where over 60 percent of the population was living in extreme poverty when the project began, residents say that their lives have improved.

Targeted investments in the areas of agriculture, education, sanitation, health care, infrastructure, technology, and local business have made a world of difference in Madagascar’s Millennium Village. Implementing the System of Rice Intensification (SRI) has helped farmers increase yields to the point of achieving food security for eleven months out of the year. Previously, their harvests only lasted three months. About 70 percent of Sambaina farmers now use the SRI method, and have seen sustainably increased rice production.

Pumps have ensured access to clean drinking water, while health education has encouraged people to maintain good hygiene and utilize the village’s health care facilities. Other investments include computers in classrooms, renovations in schools and infrastructure, and funding to start-up businesses.

Now that initial investments have been made in developing Sambaina’s basic necessities, the villagers will be responsible for maintaining them. To this end, committees have been established, which will collect contributions from residents to fund maintenance projects.

The success of Madagascar’s Millennium Village is undeniable. Even in a country with almost no economic growth and four years of political crisis, targeted investment and development assistance has nearly eliminated extreme poverty in Sambaina within just five years. The country of Madagascar has no hope of achieving the Millennium Development Goals by 2015. But Madagascar’s Millennium Village Project in Sambaina proves that foreign aid, when responsibly managed, is instrumental in improving the lives of the world’s poor.

– Kat Henrichs

Source: IRIN

A Gift from Madrid to Reduce Poverty

A Gift from Madrid to Reduce PovertyLast month, 400 International MBA students from the IE Business School in Madrid went to Pakistan to work on the “LettuceBee Kids” project, a “social enterprise aiming to provide a self-sufficient mechanism of survival to street children.” The IE Business program challenges its International MBA class by exposing students to extreme poverty-stricken areas and countries where they get to participate first-hand in poverty projects. Within the program, the Change in Action (CIA) module was formed in 2008 as a part of the International MBA agenda to fight global problems.

It was challenging to take a diverse group of 400 of the top students in the program from Madrid to reduce poverty in Pakistan, having them brainstorm sustainable solutions for street children in Islamabad in just five days while they did not know much about the country in the first place. Professor Todd Lombardo brought to the table the design thinking concept – which is composed of six stages: understand, observe, synthesize, ideate, prototype, and test – to help the students come up with innovative solutions.

The author of the article, Saad Khan, urges “elite institutions” to get their students to be involved in similar projects and programs. Exposure to extreme poverty not only creates awareness among those who are not directly affected by it, but it allows for an acknowledgment of the costs of capitalism, the lack of business models which are value-based, and extreme disparities in income between the haves and have-nots. Additionally, Khan believes that foreign policies should be tweaked to better address problems of poorer nations, which in turn would help prevent and tackle terrorism.

– Leen Abdallah

Source: The Tribune

Social Enterprise Helping India’s Salt Harvesters

Social Enterprise Helping India's Salt Harvesters
Sabras, a social enterprise organization based in India, is using micro-lending to help the country’s poverty-stricken salt workers gain freedom from predatory lenders and non-cooperative banks.

In the state of Gujarat, where nearly 70% of India’s salt is sourced from, self-employed salt pan workers are subject to harsh physical conditions as well as predatory loans leading to little profit. Temperatures reach harsh highs in summer and lows during winter, causing adverse health effects for workers. Since the workers are self-employed, a majority of them need to borrow money from lenders who fix the price of the salt much lower than it normally would be, cutting profits for the salt pan workers down to nearly nothing, most often just 1% of the market value. Most of the banks in the country are not willing to lend to poor people, leaving the workers without options.

Rajesh Shah, the founder of Sabras, recognized these hardships and created an organization that is not only for the poor but mostly owned and operated by the poor as well, with workers holding nearly 74% of shares in the company. Before there was an alternative lender like Sabras, workers were forced to take out loans with interest rates as high as 48%. Sabras’ interest rates are just 12.5% with the ability to purchase advanced solar pumps that allow workers to increase output over the long run.

Sabras has already made a large impact as nearly 70,000 people are employed in the salt industry in Gujarat. Shah contends that the company’s 400 shareholders have seen a profit increase of 400% within the last two years since they used Sabras loans to purchase the solar pumps.

Looking ahead, Sabras hopes to begin including women in the salt industry’s processes in order to increase profits and improve the quality of life for them as well.

– Christina Kindlon

Source: The Guardian

Euvin Naidoo TED Talk on Investing in Africa

Euvin Naidoo TED Talk on Investing in Africa
As president of the South African Chamber of Commerce – America, Euvin Naidoo works with leading corporations and governments to strengthen trans-Atlantic economic ties. In his Ted Talk, Euvin Naidoo focused on “Africa: the next chapter”. To separate the rhetoric from the reality and the fact from the fiction; to go to the actual data and statistics that exist about the actual things happening in Africa that make this continent a realistic investment opportunity and an option for all around the world.

He stated that investing in Africa is a broad term. Africa is not a country; it is made up of 53 different countries. And every country in Africa has a unique value proposition. You can win money here, and you can also lose money here.

Starting the talk about an investment opportunity, as a banker, Euvin Naidoo mentioned some macro-factors. The first sign is that Inflation is coming down across Africa while reaching double-digit figures in many other countries; he called it “Z.E.N. cluster”.

Zambia from 2004 to 2006 has moved from 18 percent in inflation to 9 percent; Egypt from 16 percent to about 8.4 percent; Nigeria from 16 percent to 8 percent – all in single digits. More fascinating, you have other countries, like South Africa, Mauritius, Namibia, which are also in single digits. And this is just part of the story.

Then he gave specific examples from some countries to illustrate his research.

Instead of focusing on South Africa’s gold, minerals, and its first infrastructure, Euvin Naidoo mentioned other important aspects. South Africa was recently voted as the top destination for the top 1000 UK companies for offshore call-centers. They have the same language, timeline, et cetera. Other big names that had reached Africa were Bain Capital and KKR, the big companies of private equity. Bain Capital’s acquisition of Edcon, a large retailer, is testimony to the confidence these famous names are beginning to place in the economy in what is going to be a long-term play.

Nigeria is clearly a hot spot. The new report, issued by Goldman Sachs, highlighted that, by 2020, Nigeria is going to be among the top 10 economies in the world. And also, without any sovereign backing, Nigerian companies are raising capital offshore.

In the oil industry, Africa provides 18 percent of the U.S.’s oil supply, while the Middle East offers just 16 percent. So, Africa can be an important strategic partner to America.

Finally, Naidoo concluded with Africa’s important position in the world economy because of its investment potential.

– Caiqing Jin (Kelly)

source: Ted Talk
Photo: WhiteAfrica

The 100 Richest People In the World Could End Global Poverty

The 100 Richest People In the World Could End Global Poverty
It would cost $30 billion annually to end global poverty. This would mean that billions of people would no longer suffer from malnutrition, food insecurity, unsanitary conditions, preventable disease, and lack of education. A new study by Oxfam shows that the world’s 100 richest people earned $240 billion in 2012, enough to end global poverty four times.

While a majority of businesses and individuals were financially hurt by the economic crisis, the wealthiest have benefited from it. Oxfam reported that “The richest 1 percent has increased its income by 60 percent in the last 20 years with the financial crisis accelerating rather than slowing the process,” thus contributing to the growing gap between the rich and poor of the world.

It can be difficult to fathom how the richest 100 people can earn hundreds of billions of dollars in a year while billions of people can live on less than $1.25 a day. Oxfam’s report, “The Cost of Inequality: How Wealth and Income Extremes Hurt us All,” suggests that having so few people controlling such a large amount of the world’s wealth makes it more difficult to end global poverty. The philanthropic organization urges world leaders to address this alarming financial inequality by ending extreme wealth by 2025.

In order to return to 1990’s inequality levels, Oxfam suggests that world leaders get rid of tax havens and regressive taxes, implement a “global minimum corporation tax rate,” increase wages in proportion to corporate earnings, and “increase investment in free public services.” These extreme inequality gaps are spreading to countries like China, the United Kingdom, South Africa, and the United States. Oxfam states that inequality levels in South Africa are worst now than during the end of apartheid.

Jeremy Hobbs, Executive Director of Oxfam International, is adamant that the study shows the idiocy behind trickle down economics. He says, “We can no longer pretend that the creation of wealth for a few will inevitably benefit the many – too often the reverse is true.” He also stresses how when the wealthy control politics, they will often employ policies that only benefit the rich. World financial leaders are meeting April 3rd to discuss these issues and how to overall improve the global economy.

– Mary Penn

Source: SCMP
Photo: Global Giving

NIU Engineers Without Borders Tackle Mexico and Tanzania

NIU-Engineers-Without-Borders                            

For almost a decade, universities from across the United States have participated in thousands of trips to locations around the world to help improve low-income communities, whether it be through development, medical and health, or social advocacy.

Northern Illinois University’s Engineers Without Borders chapter has been in partnership with two organizations in both Mexico and Nyegina, Tanzania building sustainable and easy-to-manage appliances.

NIU’s EWB is entering its last year in a 5 year contract with Nyegina Secondary School, located in a village about an hour from the Kenya Tanzania border. Here, their first project was to install a solar lighting system to help supply cheap electricity to 6 classrooms and the library.

Their next project is focused on the kitchen. It includes designing a ‘lion stove’ which will use wood more efficiently to lower costs for the school as well as a solar water heater. These three additions to the school are important not only because they utilize a renewable energy source but because they allow the school to keep their expenses down. The less money they have to spend on basic lighting and cooking, the less children will have to pay to attend.

In Mexico, with support and guidance from iCatis (International Centers for Appropriate Technology and Indigenous Sustainability), students have been working to improve the water filtration system in remote villages.

Throughout their experimentation, these young engineers must keep in mind who they are designing these systems for. What works in the developed world cannot be sustained with the limited resources in developing countries. The villagers must be well trained and educated before students leave so that they understand how to repair appliances if they break and make improvements themselves if necessary.

– Deena Dulgerian

Source:NIU Today

Drought: The World’s Costliest Natural Disaster

Drought: The World's Costliest Natural Disaster
Drought is the world’s most expensive natural disaster. It causes an estimated loss of between $6 and $8 billion each year. As temperatures increase and erratic weather becomes normal in much of the world, droughts are increasing in frequency and severity in both developed and developing nations. Drought costs cannot be measured with certainty in poor nations, where their impact on those without insurance and who practice subsistence farming is often life-threatening.

The first-ever global conference on drought and drought policy took place this March in Geneva. The meeting exposed the disparity between national drought policies and the implementation of such policies on the ground. Despite recognition that a country cannot be forced to develop or implement disaster relief policies, conference participants issued a declaration urging all nations to do just that. The declaration was accompanied by a 10-step program for recommended policy action. The program, which is based on US drought preparation policies, combines crisis prevention and response, drought resilience, and scientific recommendations.

It includes steps such as:

  • appointing a national task force on drought
  • consulting with all stakeholders, from rural communities to top policymakers
  • resolving water-related conflicts and fostering cooperation
  • collect data on drought vulnerability
  • build public awareness of drought policy through education and science
  • evaluate and address drought research needs

Natural resource management plays an important role in drought management. Drought-resistant seeds, soil conservation techniques, and food storage facilities can minimize the effects of drought on vulnerable farming communities. But the policies of many countries often do not amount to much relief for their inhabitants. Recent droughts have had a massive impact on people all over the world. Droughts in the Horn of Africa and Sahel have had devastating consequences for food production, food security, and malnutrition in those regions, while droughts in the US have caused global food prices to rise, contributing to social and political unrest.

Since 2011, natural disasters have cost over $100 billion each year. That figure accounts primarily for insured losses in rich countries, and does not cover losses in poor countries, where such measurements are unavailable. Millions of the world’s poor continue to experience hunger on a daily basis as a result of drought and other natural disasters.

According to the International Organization for Migration, drought is the second biggest instigator of migration.

– Kat Henrichs

Sources: IRIN, IRIN
Photo: Follow the Piper

One World Futbol Spreading the Love of Soccer

One World Futbol Spreading the Love of Soccer
Growing up, many of our toy boxes were full of tennis balls, NERF balls, and soccer balls. As no surprise, even these simple toys are expensive and hard to come by in developing countries such as Darfur and Malawi. But with soccer being the most popular sport in the world, it has come to symbolize a strong sense of community. It is an obsession and passion with children who can barely afford a meal but will scavenge through trash to find anything that could remotely serve as a makeshift soccer ball.

In 2006, Tim Jahnigen was moved by a report on children in Darfur using pieces of trash and rocks as toys. A musical producer and multi-patent holding inventor, he decided to put his connections and passion for soccer to use. With a starting grant of $30,000 from friend and fellow musician Sting, Jahnigen created a prototype for an indestructible soccer ball. Made out of a material called ‘PopFoam’ (think the flexible but tough plastic used for Crocs), these balls can be left outdoors in rough conditions, played on dirt fields, and basically be beaten up and still have a natural bounce to them. These characteristics make them perfect for the environments children play in developing countries.

Within the past two years, One World Futbol has delivered over 200,000 balls. Despite these efforts, Jahnigen is determined to reach millions, if not all 1.3 billion children under the age of 12, through his organization. With financial support from Chevrolet, manufacturing is still continuing but the organization needs much more funding.

OWF is not a non-profit. It functions more or less like TOMS Shoes does (buy-one-donate-one) so about 25% of its soccer balls have been bought through their website and delivered with this business model. However, Jahnigen is much keener on having partner organizations and donors to help with the production costs since online purchases actually cause the price of the balls to go-up.

Ever so optimistically, Jahnigen has already been in talks with creating PopFoam cricket balls, focusing specifically on the South Asian market, where cricket is widely played. With the support of five major cricket organizations for this project, it boosted Jahnigen’s confidence in not only expanding the indestructible balls to cricket but to other sports such as football, volleyball, rugby, and basketball.

With so many intensive organizations around the world, it is always important to remind ourselves how a child’s life can be so easily changed. Soccer brings together the rich and the poor, the hungry and the full, and has the power to break across political boundaries. Supporting ventures such as One World Futbol can have an immediate impact on those worried about donating their money to other causes. Humanitarian aid can take many shapes and forms but the most basic ones, whose goals are simply to bring joy to children, also have the strongest impact.

– Deena Dulgerian

Source: Co.Exist

Fog Catchers Project at U of W

Fog Catchers Project at U of WWhile morning dew may settle and dry within a couple of hours, the persistence of fog especially in coastal areas creates a valuable resource for irrigation. Students at the University of Washington have been producing mist and testing various materials to create a long-lasting and efficient fog catching system over the past year.

Fog catching is in no way a brainchild of the 21st century. Inhabitants of the Canary Islands 2,000 years ago used trees to capture water droplets. These days, however, with much of the forests having been cut down in countries such as Peru, man-made fog catchers are being used to irrigate land and provide water to villagers.

How fog catchers work is actually quite simple. A mesh plastic net is held up by poles and while the layers of fog move through the nets, water droplets settle and eventually drip down into a bucket. More complex systems such as one in the highlands of Guatemala use piping and divert the water that’s collected, about 2,000 gallons a day, to supply a village of 200 people with a reliable flow of water.

Under the supervision of Susan Bolton, an ecologist and civil engineer at UW, graduate students use their $15,000 in prize grant money from the EPA’s People, Prosperity, and the Planet program to find what materials will catch more droplets while lowering the cost and maintenance of the nets. Robert Schemenauer, an atmospheric physicist from British Columbia who founded the nonprofit FogQuest and has been a part of the creation of most of the fog catching systems around the world, has also been active in the research program. He maintains a strict reminder to the students and professors that they need to think of their audience on the smallest scale. Fog collectors cannot provide enough water for large towns or cities so they should not be looked as replacements for municipal water facilities. The material must be cheap enough but durable to last in conditions where they will be used.

Currently, the UW team is experimenting with a fibrous plastic mat, much like the ones that are used to cover turf. They are also changing up the shapes of the nets themselves; instead of using rectangles, making it more of a triangular shape to allow the water droplets to trickle down better.

The students make it clear that the natural fog will not be diverted from an original source. It’s a fog that usually goes unharnessed but can help turn around the agriculture in the community they hope to work within Lomas de Zapallal near Lima, Peru.

Next month, the UW team will present their results along with the other winners of the EPA’s $15,000 grant at the National Sustainable Design Expo in Washington, D.C. They then have a chance to win a $90,000 grant to help continue to initiate sustainable programs that will help solve environmental problems, big or small. The grant money will also help them actually execute their program in Lomas de Zapallal.

– Deena Dulgerian

Source:Seattle Times

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International Women Development Champion Award

International Women Development Champion AwardThe International Women Development Champion Award honors exemplary women who have dedicated their lives and have committed their efforts to the economic development of Africa and African women. On 24th March, the President of UN Women National Committee Canada, Almas Jiwani, was awarded the International Women Development Champion Award in Paris. She is the first Canadian and the first UN Woman representative to receive this award. The initiatives she took in trying to connect the gaps between the corporate world and the humanitarian world made her a new face for humanitarianism. She has put tremendous efforts into establishing change through excellence and dedication to philanthropy.

Almas Jiwani expressed how this award promotes equality, “We must continue investing in African women and increase their involvement in the political structures in place and in everyday life.” Furo Giami, the Executive Director of the Center for Economic and Leadership Development said that it’s an honor to present Almas Jiwani with this award to recognize her efforts and achievements at contributing to the end of global poverty and “all forms of vices militating the development of African women.”

Some of the women who have received this award in the past include President Joyce Banda of Malawi, Vice President Joice Mujuru of Zimbabwe, Business Leader Wendy Luhabe of South Africa, Ida Odinga (wife of the Prime Minister of Kenya), Rt. Hon. Anne Makinda (the Speaker of Parliament in Tanzania) and others.

– Leen Abdallah

Source: Market Wire