Archive for category: Global Poverty

Key articles and information on global poverty.

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How Microfinance in India Transforms the Lives of Rural Women

<span style=India is a rich, diverse nation in Southern Asia, within what is known as the “Indian subcontinent.” It has long boasted extremes of all sorts, with Antilia – the residence of India’s richest family – located on Billionaire’s Row adjacent to the Dharavi Slum, which houses more than one million people. This extreme poverty is nothing short of ubiquitous.

Microfinance in India

Microfinance in India, which surfaced in 1974, refers to financial services aimed specifically at low-income individuals who do not meet traditional banking services requirements. The microfinance institutions offer small business loans at reduced interest rates to finance entrepreneurial initiatives for low-income individuals. In India, microfinance has proven instrumental to more than 160 million impoverished households as of 2023.

The Impact of Microfinance in India

Rajpoot was a homemaker in Narela, Madhya Pradesh, in rural India. She had fallen into loan shark schemes, borrowing twice to cover emergency medical expenses and her son’s college tuition. However, loan sharks are notorious for their high interest rates, which only prove troublesome for low-income borrowers. Rajpoot could not repay the 5% daily interest on her last loan in 2019, forcing her to give away a family heirloom as compensation.

However, in 2020, her life changed when she registered for a low-cost loan program with a group of women from her village. She used the funds to start a dairy herd business. Today, she proudly owns seven cows and one buffalo. She comfortably repays the $19 monthly installment to the microfinance company, Spandana Spoorthy Financial Ltd, while also affording her expenses, freeing her from crippling poverty.

The success story of Rajpoot highlights the impact of microfinance in India. Her story comes in addition to prominent microfinance banks, such as the National Bank for Agriculture and Rural Development (NABARD), which have empowered more than 160 million impoverished Indian households as of 2023.

The Importance of Microfinance in India

In India, where about 80% of women are financially illiterate, loan sharks often charge high daily interest rates. This practice drives more people into extreme poverty as they are forced to borrow from one lender to repay another. Microfinance provides an alternative to predatory lending, offering fair and manageable loan terms. By empowering women with access to financial resources and education, microfinance helps break the cycle of debt and fosters economic independence and stability.

Final Remark

Microfinance in India plays a critical role in bridging the nation’s economic extremes. Encouraging this practice involves supporting the banks directly engaged in microfinance. It increases marketing prospects in villages where microfinance would yield the greatest benefits in alleviating poverty. These measures would ensure that the initiative is maximized and that as much of the population as possible is aware of this initiative. Additionally, the initiative can help brighten the nation’s future by empowering illiterate women as legitimate income earners.

– Disheta Anand

Disheta is based in Dubai, United Arab Emirates and focuses on Business and Politics for The Borgen Project.

Photo: Pexels

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Seaweed Farming in Zanzibar: Lifting Farmers Out of Poverty

Seaweed Farming in ZanzibarZanzibar, an archipelago in the Indian Ocean, is an autonomous part of the United Republic of Tanzania. Tanzania is one of the most populous countries in Africa and one of the fastest-growing economies on the continent. Key to its economic growth is the local seaweed industry. Seaweed farming in Zanzibar is one of the region’s largest sources of income, is women-run and has immense environmental benefits.

Warming sea temperatures due to adverse weather have recently disowned the industry’s future and farmers’ livelihoods. However, a joint operation between The Nature Conservancy, The C-Weed Corporation, Cargill and the Zanzibar government stepped in to train the farmers on more sustainable practices.

The Seaweed Boom

Only trailing behind tourism and clove production, seaweed farming in Zanzibar is the archipelago’s third-largest industry. An overwhelming majority of the seaweed is used to produce carrageenan. This thickening agent appears worldwide in ice cream, toothpaste and cosmetic products. According to a United Nations (U.N.) report in 2018, farmers produced 15,000 metric tons of seaweed, accounting for 90% of Zanzibar’s marine exports and bringing in $8 million a year.

Additionally, seaweed farming requires no fresh water, feed or land and creates no carbon emissions. “It’s incredible from an ecological standpoint,” said Robert Jones, director of The Nature Conservancy. Seaweed also acts like a sponge, removing excess waste from the sea, improving water quality and providing new habitats for fish and other aquatic life. Around 25,000 people are employed and 80% of these farmers are women. Wading out into the ocean every morning, the women farmers of Zanzibar plant cultivate their yield in shallow waters along the coast. Doing so has brought them an essential source of income, as a quarter of the Zanzibari population lives in poverty.

Excluded from fishing and tourism jobs because of their gender, Zanzibari women turned to seaweed farming, which required no need for a boat or knowledge of how to swim. “Seaweed farming gave us our independence. I want the same for the next generation,” said Mwanaishia, a seaweed farmer in Paje, a village in the southern Island of Unguja. “I can say that seaweed farming lifted us up as women in Paje.” She can earn up to $85 a month in a good year. From her income, Mwanaisha became a landowner and built a second house that she rented out.

A Helping Hand

In 2020, seaweed farming in Zanzibar took a heavy hit. Warming waters, coastal degradation and international competition threatened the livelihoods of the Zanzibari women. “When I would check the harvest, I found that a lot of it was rotten. That’s when I realized that the environment was no good,” said Sada Hemed Suleiman, a local seaweed farmer. In response, The Nature Conservancy, one of the largest environmental nonprofits in the world, along with Cargill, a global food giant and the largest privately held corporation in the United States (U.S.), partnered with the Zanzibari Government and a local seaweed corporation known as C-Weed to revitalize the industry.

They trained farmers in sustainable practices to protect the environment and boost productivity. Mondy Muhando, a seaweed farming trainer for The Nature Conservancy, explained that the training “taught farmers on better sight selections for their farms, as well as introduced a farming technique that increases production two to three times more.” Additionally, Cargill introduced red seaweed, a new and more resilient species to Zanzibar that performs better on the international market. In total, the initiative improved the management of 528 coastal areas. The Zanzibari government then started replicating the training in more villages.

A Bright Future

This year, the state-owned Zanzibar Seaweed Company (ZASCO), in cooperation with Tanzania’s NMB Bank, announced a $3 million project to build a new production facility. According to ZASCO director Dr. Masoud Rashid Mohomed, “this will become not only the largest seaweed processing plant in Tanzania but also across the entire African continent.” As a result, Zanzibar’s seaweed farmers will be better positioned to compete internationally, with the future of seaweed farming in Zanzibar poised for growth. The hard-working women farming in the shallow coastlines will earn more money, pull themselves out of poverty and increase their voices within their communities.

– Mason Borden

Mason is based in New York, NY, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Wikimedia Commons

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AFAWA and Ongoing AfDB Initiatives

AFAWAThe African Development Bank (AfDB), a multilateral institution, aims to foster sustainable economic development and social progress in its Regional Member Countries (RMCs). Member states signed the agreement establishing the AfDB on Aug. 4, 1963, in Khartoum, Sudan and it became effective on Sept. 10, 1964. The AfDB Group consists of three entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). Here are six ongoing AfDB project.

Technologies for African Agricultural Transformation

The Technologies for African Agricultural Transformation (TAAT) initiative has assisted more than 13 million farmers across Africa, notably achieving self-sufficiency in wheat production in Ethiopia, which has now become a key exporter. TAAT revolutionizes agriculture by providing farmers with modern technologies and practices, focusing on disseminating proven agricultural technologies, supporting the adoption of best practices and enhancing agricultural productivity and sustainability.

Youth Entrepreneurship Investment Banks

Africa’s youth overflow with innovative ideas and entrepreneurial spirit but often lack the funding to realize their dreams. The Youth Entrepreneurship Investment Banks (YEIB) program, designed by the AfDB, bridges this gap. This initiative provides financial support and resources to young entrepreneurs, empowering them to create thriving businesses that fuel economic growth and innovation across the continent. This program is a game-changer for Africa’s future leaders and job creators, offering essential support such as training, mentorship and access to capital. These resources are crucial for young entrepreneurs to succeed in various sectors including technology, agriculture and manufacturing.

Affirmative Finance Action for Women in Africa

Women in Africa face significant barriers to accessing finance, but the Affirmative Finance Action for Women in Africa (AFAWA) program is changing the narrative. With more than $1 billion mobilized to finance female-owned businesses, AFAWA serves as a beacon of hope and empowerment for women entrepreneurs. The AfDB provides these women with essential financial tools and support, enabling them to build successful businesses, contribute to their communities and drive economic growth. This initiative goes beyond finance; it fosters equality and opportunity. AFAWA collaborates with financial institutions to improve lending practices for women, offers capacity-building programs and advocates for policy changes that support women entrepreneurs.

Desert to Power Initiative

Africa boasts significant solar energy potential and the Desert to Power Initiative, spearheaded by the AfDB, aims to tap into this resource to electrify millions of homes. This ambitious project plans to develop 10 gigawatts of solar energy capacity in the Sahel region by 2025, providing clean, affordable and reliable energy to some of the continent’s most energy-deprived areas. The initiative encompasses more than energy provision; it aims to drive sustainable development and enhance the quality of life for millions. Key components of the project include building solar power plants, developing mini-grids and promoting off-grid solar solutions to ensure widespread energy access.

African Emergency Food Production Facility

In response to global food supply disruptions, the AfDB launched the African Emergency Food Production Facility (AEFPF), The aim of the facility is to boost local food production and reduce import dependency. This program supports farmers in growing staple crops such as wheat, rice and soybeans, aiming to enhance food security and stabilize food prices across the continent. This initiative is vital for enabling African nations to sustain their populations and build resilience against future crises. It provides farmers with seeds, fertilizers and technical assistance, all designed to increase productivity and improve the efficiency of food supply chains.

High 5s Initiative

The High 5s Initiative identifies five key priorities for the AfDB to support the continent’s development goals. These priorities include Lighting up and Powering Africa, Feeding Africa, Industrializing Africa, Integrating Africa and Improving the Quality of Life for the People of Africa. Each priority focuses on critical development aspects such as enhancing energy access, boosting agricultural productivity, promoting industrial growth and fostering regional integration. This strategic framework aims to tackle Africa’s pressing challenges and achieve sustainable development across the continent.

Looking Ahead

The AfDB continues to drive significant progress across Africa through targeted initiatives like AFAWA. From agricultural transformation to youth entrepreneurship and women’s empowerment, the AfDB’s projects address critical development needs. Efforts like the Desert to Power Initiative and the African Emergency Food Production Facility are enhancing energy access and food security. Through its comprehensive High 5s Initiative, the AfDB strategically focuses on improving the quality of life for Africans.

– Clara Tripodi

Clara is based in Salvador, Bahia, Brazil and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Affordable Housing and Poverty Reduction

Creating Affordable Housing in Developing Nations In the age of urbanization, access to affordable, sustainable housing has become increasingly diminished, burdening developing nations aiming to provide their growing populations with necessities for survival. It is estimated that 40-75% of individuals located within rapidly growing sittings are densely concentrated in squatter settlements, with higher legal standards in housing, zoning and public services restricting many of the rights to home ownership.

According to the United Nations (U.N.) Department of Economic and Social Affairs, there are more than 1.1 billion people currently living in slums or slum-like conditions, with an additional two billion expected within the next 30 years. Yet, creating affordable housing has proven itself to be a multifaceted operation, balancing the present needs of pre-existing low-income communities while opening new opportunities for citizens to purchase homes that they can preserve in the long term.

Defining Housing

Housing itself can be a difficult term to entirely define, as it is oftentimes relative to the overarching living conditions within a city, state or nation. The World Health Organization (WHO) defines housing as a residential environment that includes all necessary services…for the physical and mental health and social well-being of the family, indicating adequacy for human habitation. Housing can thus be classified as affordable if it does not surpass 30% of the household income of a family, allowing for financial allocation to other living requirements. Comparatively, slums, in the most fundamental sense, are shelters that do not conform to the degrees established by the WHO or legalized housing codes: they may not have proper sanitation measures, structural qualities or number of permitted occupants.

Constraints to Affordability

Creating affordable housing is not straightforward, especially given the financial resources governments need to expand low-income housing programs. Simply increasing the number of available houses does not automatically make them affordable. Public housing construction often requires additional measures such as rent control and subsidies to be truly accessible. Ira Peppercorn, former deputy federal housing commissioner, argues that subsidies can be inefficient and ineffective if they do not align with long-term sustainability goals and fail to tackle the root causes of illegal ownership.

The creation of modernized homes often involves demolishing existing slums, which disrupts long-established urban communities. Peppercorn points out that slums are not merely residential areas for low-income citizens but also hubs of cultural and economic growth, fostering commercial activity with fruit stands, barber stalls and other small businesses. Instead of demolishing these communities for noncompliance with housing codes, governments could provide access to resources that help residents meet legal standards. While this strategy may not enhance living standards in every aspect, it could prove more sustainable in the long term compared to enforcing home ownership and relocating families.

Success of the National Housing Authority in Thailand

The National Housing Authority (NHA) in Thailand is one program that has been notably successful in creating affordable housing and linking community development measures with access to secure housing. Thailand has one of the highest rates of home ownership throughout the world, previously estimated at 81% in 2010, primarily due to the successes of its NHA programming. The NHA, first established in 1973, combines the interests of private investors—looking for the opportunity to develop highly subsidized land—with the manufacturing of affordable homes. NHA housing hosts a low-selling point, enhancing access for low and middle-income families, while offering subsidies up to $2,000. In 2020, amid the COVID-19 pandemic, the NHA instated more than 141 programs to sell residences at prices less than $31,000, granting thousands the ability to remain in Bangkok in this period of economic turmoil.

Affordable Housing as a Poverty-Reduction Strategy

Creating affordable housing is undoubtedly a prospective strategy for poverty reduction, grounding families in a central, stagnant and safe domestic environment. While owning a home can be beneficial on the individual level, it additionally stimulates economic growth on the national level. Samuel Munzele Maimbo, Director of the IDA Resource Mobilization and IBRD Corporate Finance for the World Bank Group, has stated that “making affordable housing…is key for long-term, sustainable development outcomes,” displaying the power of governmental investment into the housing sector.

Looking Ahead

Addressing the housing crisis in rapidly urbanizing regions requires multifaceted solutions that balance affordability and sustainability. Programs like Thailand’s National Housing Authority demonstrate the potential for success by combining community development with secure housing initiatives. Ensuring access to affordable housing not only benefits individual families but also stimulates broader economic growth, highlighting its importance as a key strategy for poverty reduction and sustainable development.

– Eileen Lincoln

Eileen is based in Oakton, VA, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr

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Female Empowerment through Fish Farming in Uganda

Fish Farming in UgandaFish farming has remarkably paved the way for female empowerment within Uganda. Supported by the United Nations (U.N.) Women, the women in the Bugiri District of Uganda are using fish farming to break down gender barriers that prevent them from escaping poverty.

The Situation for Women in Uganda

Uganda is located in Sub-Saharan Africa and has a population of 44.3 million, of which 41% live in poverty, living on less than $1.90 per day. As a developing country, women in Uganda face daily struggles. Approximately 85% of women work in the informal sector, which most often has poor working conditions, unpredictable earnings and job insecurity. Selling and trading at markets is a vital source of income for many women.

However, these women have no rights at work. Women typically struggle to platform their needs and concerns, suffering from frequent rights violations. Additionally, men dominate markets and thus, women are consequently excluded from leadership positions. In the long term, this has led to consequential restrictions on women’s economic participation across Uganda.

Fish Farming

Revolutionarily, women in Bugiri District in Eastern Uganda have broken into the male-dominated fish farming industry. Traditionally, fish farming was reserved for men, meaning women had to find other income sources. However, the women of Uganda have not only mastered the art of fishing but have simultaneously broken down the patriarchal taboo that prevents women from earning a decent livelihood.

Uganda’s Female Fish Farming Program

U.N. Women launched the Women Economic Empowerment Program to support Ugandan women defying gender stereotypes in fish farming. Initiated in 2019, the fish farming program aims to promote greater income security and decent work for Ugandan women, empowering them with economic autonomy by 2050.

U.N. Women and the Bugiri District Local Government specifically support rural women in fish farming activities in Lake Victoria. Before the program, many women with small businesses selling fish struggled. The fish farming program has trained 1,400 women in the district. As a result, there are 28 cages full of Tilapia fish, standing as a testament to the strength and empowerment of Ugandan women.

Female Empowerment through Fish Farming

The fish farming project has largely contributed to Uganda’s gross domestic product (GDP). The women have generated approximately $1.15 million in sales, producing 508.5 tons of fish. Additionally, U.N. Women have provided essential supportive services in the region, such as day care services for children, supplying necessary resources and housing fisherwomen in accommodation.

On an individual level, women across the Bugiri District have significantly benefited from the fish farming project. A resident and fisherwoman in Bugiri, Rose Nakimuli, commended the project, celebrating that she has developed aquaculture skills and learned how to swim and fish. Additionally, female empowerment through the fish farming program has several economic benefits. Women learned essential business management skills, learning how to run a business from start to finish successfully.

The project also strengthened women’s involvement in government and the whole fish value chain. Subsequently, the women established this project as a private company named “Women Economic Empowerment Bugiri” (WEEB). The CEO of WEEB, Ms. Immaculate Were, stated that women are now “specialized in feeding, harvesting, preservation, marketing and trading.” In turn, gender equality across Uganda has improved within homes, as women can earn a decent income to contribute to the family. Furthermore, the fish farming project has reduced gender-based violence because women are empowered within themselves, both socially and financially, instead of relying upon men. One fisherwoman added that “men now view them as heroes.”

Looking Ahead

Overall, female empowerment through fish farming across Uganda has been significant. The continued U.N. support for female empowerment is a hopeful solution to eradicating poverty across Uganda and combating gender inequality. “Once a woman gets wealthy, that’s wealth for the whole nation,” stated Were.

– Sian Ameer-Beg

Sian is based in Durham, UK and focuses on Business and Good News for The Borgen Project.

Photo: Wikimedia Commons

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Sudan’s Child Soldiers: Rehabilitation Efforts by World Vision

Sudan’s Child SoldiersSudan has experienced the largest displacement since the civil war outbreak in April 2023, affecting approximately 12 million civilians. The conflict between the paramilitary Rapid Support Forces (RSF), led by Janjaweed leader Hemedti and the Sudanese Armed Forces (SAF), under Abdel Fattah al-Burhan, has displaced more than 1 million children, primarily across South Sudan, Ethiopia and Egypt. This sudden instability has resulted in numerous deaths and disabilities and has brought the country to the brink of famine.

Child Soldiers

Child soldiers often come from poor backgrounds and are forcefully recruited and, in some cases, decide to join, having witnessed violent streaks in their villages under the influence of the warring parties. In 2000, the United Nations (U.N.) General Assembly warned militias. It recognized that the use and recruitment of children as child soldiers is a crime act. An optional protocol was initiated to protect children from recruitment.

Despite extra measures, the United Nations Children’s Fund (UNICEF) has accounted for 7,622 child soldiers in global conflicts as of 2022. The militia abducts and indoctrinates children to be porters, guards, cooks and combatants; the minors are also used as shields and for sexual exploitation, according to the U.N.

World Vision

World Vision is a Christian faith-based organization that seeks to create safe and harmonious environments for vulnerable children, irrespective of their backgrounds. It is dedicated to ending child exploitation in developing countries by tackling the root cause of poverty. World Vision’s main aim is to end all forms of child exploitation with a holistic approach, providing hope to Sudan’s former child soldiers.

Measures Set in Rehabilitating Child Soldiers

  1. Prevention: The primary focus of World Vision is to prevent child recruitment and ensure child safety by educating the affected communities on how family/community violence can lead to malleable decision-making. It believes that reinforcing protective measures can prevent recruitment. Furthermore, integrating tools and skills for young boys and girls in decision-making can lead to a more harmonious community.

    Elders and caregivers are encouraged to participate in social networks to eradicate harmful beliefs and help protect their youth. In partnership with civic organizations, community-based organizations and other nongovernmental organizations (NGOs), World Vision provides economic opportunities, social assistance, universal birth registration and family support funds.
  1. Reintegration: Despite the atrocities Sudan’s child soldiers have faced, many find hope in World Vision’s rehabilitation centers. So far, 2,000 children have recovered with the aid of UNICEF and the education sector in the two centers currently operating in South Sudan. Former war children receive counseling tailored to their traumas. Additionally, opportunities for a new life are created through access to formal education, various apprenticeships like tailoring and other vocational training.

    Additionally, World Vision has funded space in the Blue Nile region with a volleyball court, basketball court, board games and art equipment. Children-friendly spaces are important for the psychological development of former child soldiers, allowing them to feel like children again. One former child soldier, Grace, who was abducted at 17, shared her gratitude for the rehabilitation center and how she found hope again through tailoring.

Final Remark

World Vision’s efforts have transformed the lives of children who once knew only violence. By promoting social cohesion and providing access to education, the NGO aims to prevent further child exploitation. The long term goals is ensuring a better quality of life for the children and their communities.

– Lydie Udofia

Lydie is based in London, UK and focuses on Global Health and World News for The Borgen Project.

Photo: Flickr

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The Beirut Blast Calls for a Different Distribution of Aid in Lebanon

aid in lebanonLebanon will solemnly remember the explosion in its capital which shook the city’s foundations, halted a revolution in its steps and showed the importance of a different aid distribution in Lebanon. On August 4th, 2020, at 6:07 pm, 2,750 tons of ammonium nitrate were ignited, causing “the largest non-nuclear explosion in modern times.”

The Beirut blast had initially caused an estimated $3.8 billion to $4.6 billion in material damage. That number was only to increase as casualties became more evident: the explosion killed 218 people from more than 14 different nationalities, wounded 7,000 people and caused a physical disability to 150 of them. And because of Beirut’s incredibly high population density, some 300,000 people faced displacement, according to Human Rights Watch (HRW).

Aid in Lebanon

Aid came quickly from multiple organizations and concerned nations:

  • Britain: $6.6 million in aid for search and rescue.
  • Germany: 47 strong rescue teams and €1 million through the German Red Cross to establish local aid centers.
  • Russia: Five planes worth of medical equipment, including field hospitals and well-equipped medical personel.
  • Iran: Field hospital, medical equipment and nine tonnes of food.
  • Lebanese Red Cross: Providing essentials to 80,000 people, and distributing almost $800,000 in cash grants for people to rebuild their destroyed homes.

The humanitarian response right after the explosion was adequate, excluding, however, many of those who had perished under the rubble because of a delay in rescue missions. Such was the story of Chady, who had died under a fallen building after waiting to be rescued for an astounding 24 hours. The aid his mother Hayat received following the tragedy was subpar, allowing her only to buy a casket for her dead son.

This tells that the long-term distribution of aid in Lebanon has been incredibly lacking. Two years after the Beirut blast, 1 million people in Lebanon, half of them children, were living under the poverty line and could not afford necessities

International Assistance

Before the Beirut blast the country had been going through an economic crisis and the International Monetary Fund (IMF) withheld monetary assistance from the Lebanese state because of a lack of political reform.

The America Near East Refugee Aid (ANERA) has been working even two years after the explosion to renovate damaged houses and buildings. In 2023, the two engineering companies Artelia and Egis came up with a plan to help reinvigorate the Beirut Port, but they need between $60 to $80 million to begin with the project.

International assistance of this sort can mean the difference between collapse and survival, so lobbying for inventive and effective distribution of aid in Lebanon is a must for both organizations and the international community as a whole.

– Carl Massad

Carl is based in Chandler, AZ, USA and focuses on Politics for The Borgen Project.

Photo: Pexels

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The Path to Poverty Reduction in South Korea

Poverty Reduction in South KoreaSouth Korea has adopted a long-term, comprehensive, multifaceted approach to reducing poverty, integrating government initiatives, technological innovations and international cooperation. These strategies have resulted in significant improvements in the country’s economy, education and infrastructure, making South Korea “the 12th largest economy in the world.” Here is information about poverty reduction in South Korea.

Economic Growth and Poverty

Since the end of the Korean War, South Korea’s economy has expanded, turning it from a low-income nation into a major player in the world economy. According to the World Bank, South Korea’s real gross domestic product (GDP) increased by an average of 5.7% each year between 1980 and 2023. Moreover, its gross national income (GNI) per capita swiftly advanced from $67 in the early 1950s to $33,745 in 2023.

South Korea faces challenges in addressing relative poverty, especially among senior citizens. The Human Rights Measurement Initiative (HRMI) ranks the country among the bottom three OECD countries in terms of relative poverty rates. For people aged 65 and older, South Korea has the highest relative poverty rate in the OECD.

Human Rights and Social Outcomes

On the other hand, the HRMI gives South Korea a positive score in ensuring basic rights such as food and health for its people. The right to food is 97.3% of what should be possible with South Korea’s GDP per capita, indicating that the majority of the population has adequate access to food, according to the HRMI.

However, the organization also notes that the right to work is less adequately addressed, with South Korea scoring only 74.4% of its potential in ensuring employment. This disparity is due to the high rate of relative poverty and the significant gap between regular and non-regular workers.

Government Policies and Welfare Programs

In recent decades, poverty reduction in South Korea has become more prevalent largely due to various government policies on enhancing social welfare and labor reforms. Social spending has increased significantly, quadrupling as a percentage of GDP from 1990 to 2015. The current administration has continued this trend by raising the minimum wage and expanding welfare budgets, according to the HRMI.

However, South Korea’s social spending still remains relatively low compared to other countries in the OECD. According to the HRMI, social spending in 2020 was only 10.4% of GDP, far below the OECD average of 21.6%.

According to the Ministry of Economy and Finance, the South Korean government has implemented various initiatives to stabilize the economy through fiscal policies, regulatory reforms and measures to manage inflation and stabilize prices. These policies create an environment that is conducive to business growth and job creation.

Expansion of Social Safety Nets

South Korea’s efforts to expand its welfare programs since the late 20th century have continued to this day. These enhanced safety nets aim to provide comprehensive economic support and safeguards to vulnerable populations. In particular, many of these programs focus on providing tailored health care, pension benefits and direct financial aid to senior citizens and rural residents, promoting equitable growth and development.

However, despite the expansion of these safety nets, relative poverty among vulnerable populations in South Korea remains an issue to this day. For example, the 2022 OECD Economic Survey of Korea reports that the average pension paid by the National Pension Service was only the equivalent of a third of the country’s minimum wage. Such factors have contributed to the ongoing high rate of relative poverty found by the HRMI in South Koreans aged 65 and older.

The international dimension of South Korea’s poverty reduction strategy applies active participation in global economic forums and hosting significant events like the World Bank’s 21st International Development Association (IDA) replenishment meeting. In only six decades, with the help of the IDA and World Bank, South Korea has transformed from an IDA recipient to a contributor that is now positioned to support the development of other countries.

The Future

South Korea’s journey from a war-torn nation to an economic giant is a testament to its resilience and effective policy-making. The government’s integrative approach to reducing poverty within the country through innovative policy-making, technological advancements and international cooperation has demonstrated rapid success.

However, there is still room for further improvement. The ongoing refinement and expansion of South Korea’s social spending, labor reforms and targeted poverty alleviation programs are still essential to ensuring sustainable poverty reduction in South Korea and improving the social outcomes for all its people.

– Sophia Lee

Sophia is based in Media, PA, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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5 Charities Tackling Extreme Poverty in the DRC

Extreme Poverty in the DRCThe Democratic Republic of Congo (DRC) faces one of the highest extreme poverty rates globally. In 2023, the World Bank estimated that 74.6% of its population lives on less than $2.15 per day, ranking it second only to India in terms of the number of people living in extreme poverty. Much of this dire situation stems from ongoing regional violence between government forces and rebel militias, which has displaced more than five million people in recent years. Despite immense challenges, numerous charities actively combat extreme poverty in the DRC, focusing on malnutrition and disease. Key organizations are making significant differences in the lives of millions of Congolese, revealing the profound impact of international aid in one of the world’s most impoverished regions. Here are five charities tackling extreme poverty in the DRC.

Oxfam

Oxfam has been active in the DRC since 1961, a year after the country’s independence, with current operations spanning six provinces. The organization’s efforts are primarily directed toward providing emergency relief to those affected by crises. This includes supplying clean drinking water, sanitation and food to approximately 700,000 internally displaced people. Oxfam is also dedicated to ensuring longer-term access to clean water for communities and schools throughout the country. Additionally, Oxfam has been instrumental in fighting the country’s recent Ebola outbreak, the second most severe in history. Its public health initiatives aimed at curbing the virus’s spread have reached more than 750,000 people since the outbreak began, representing about 1% of the national population.

Concern Worldwide

Concern Worldwide’s efforts in the DRC closely align with tackling issues similar to those addressed by Oxfam, having provided immediate life-saving support to more than 400,000 individuals in 2023, including nutrition assistance. Additionally, the charity places a significant focus on the gender-based aspects of extreme poverty in a country where more than half of all women experience violence from a partner at some point. Concern’s Graduation program not only aids families in escaping extreme poverty through training and financial assistance but also incorporates gender equality sessions for male community members. This initiative has led to more than 63% of families reporting increased female consultation on household decisions, effectively mitigating the severe impacts of extreme poverty on women.

War Child

War Child has focused on addressing the vulnerability of children to sexual violence in the DRC amid ongoing intrastate violence. Since beginning its work in the country in 2004, the charity has noted that more than 74,000 cases of sexual violence were reported between Jan. and Sept. 2021, with many more likely unreported. Currently, War Child concentrates on child protection and psychosocial support for victims of sexual violence, supporting 67,532 children and their families in 2023.

The International Rescue Committee

The International Rescue Committee (IRC) tackles extreme poverty in Congo by focusing on four key provinces. The charity provides emergency care to vulnerable populations, offering access to health care, water, shelter and sanitation. It also empowers local communities to engage in peace-building initiatives, promoting economic recovery in areas affected by conflict. Additionally, the IRC emphasizes support for women and girls by providing reproductive health services and offering counseling and legal assistance to victims of sexual assault.

Tearfund

Tearfund’s work in the Republic of Congo focuses on water, sanitation and hygiene (WASH) projects, addressing the needs of eight million people without proper sanitation or clean water. The charity provides access to safe water and educates communities on effective hygiene practices. Additionally, Tearfund promotes sustainable farming to combat hunger-related poverty. Like many other charities, Tearfund supports victims of physical or sexual violence. Its “Transforming Masculinities” approach aims to reduce stigma for survivors and decrease the incidence of intimate partner violence.

Looking Ahead

Addressing the housing crisis in rapidly urbanizing regions requires multifaceted solutions that balance affordability and sustainability. As regional conflict continues in the country, leaving more than 7.2 million internally displaced people, the need for emergency aid in the country continues. Programs like Thailand’s National Housing Authority demonstrate potential for success by combining community development with secure housing initiatives. Ensuring access to affordable housing benefits individual families and stimulates broader economic growth. This approach highlights its importance as a key strategy for poverty reduction and sustainable development.

– Ben Evans

Ben is based in Abbots Langley, Hertfordshire, UK and focuses on Good News for The Borgen Project.

Photo: Flickr

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3 Agricultural Organizations in Ethiopia

agricultural organizations in EthiopiaAgriculture plays a crucial role in community health and wellness in the developing world. This is particularly evident in Ethiopia, where 20.1 million people require food assistance and 7.4 million women and children suffer from malnutrition. This figure includes internally displaced persons (IDPs) who have sought refuge in safer areas to escape conflict and droughts. The significant food productivity and security challenges in the country highlight the critical role of agricultural organizations in Ethiopia to address these issues.

Nuru Ethiopia

One innovative agricultural organization in Ethiopia is Nuru Ethiopia. This organization was founded in 2012 and follows a community-based model entirely led and designed by local people. It aims to create lasting, positive change. The work of Nuru Ethiopia moves local populations from subsistence farming toward “thriving farmer-owned and farmer-led agribusinesses.” This work creates stronger communities that become resilient to issues that Ethiopians face such as adverse weather conditions, conflict and poverty. 

Nuru Ethiopia is distinctive in its approach, which incorporates unions into its model, enabling farmers to access international markets and achieve higher profit margins. This strategy supports the upliftment of communities from extreme poverty and food insecurity. It also establishes Nuru Ethiopia as a notable player among the significant agricultural organizations in the country.

Agri Service Ethiopia

Another organization that works to improve agriculture in Ethiopia is Agri Service Ethiopia (ASE), founded in 1969. This organization was the first national nongovernmental organization (NGO) established in Ethiopia. It has worked with remote populations and smallholder farms since its inception. ASE works in three regions across Ethiopia with projects in various Woredas or districts.

ASE aims to educate rural populations on modern farming techniques to make small household farms more productive. ASE’s programs focus on training farmers to use household items to increase food productivity and their homes. Education and training are essential to overcoming unproductivity, so ASE is one of many important agricultural organizations in Ethiopia.

Farm Africa

Farm Africa is a larger organization operating in five African countries, including Ethiopia. The organization finds that most Ethiopians live on less than $1 a day and that 35% of the country suffers from food insecurity despite 67% of the population being involved in agriculture. Farm Africa began its work in Ethiopia in 1988 and it remains the largest project due to the unique challenges that the country faces. Ethiopia is landlocked, drought-prone and experiences extreme effects of changing climatic conditions. For this reason, Farm Africa has tailored its programs in Ethiopia to fit the country’s specific needs.

Farm Africa recognized the need to address unsustainable farming practices, so it focuses on holistic approaches to forest conservation and climate resilience. Given Ethiopia’s significant role in coffee production, Farm Africa has also worked to enhance the sustainability and profitability of these farms for local communities.

The organization has completed 11 projects nationwide and is working on eight more. These initiatives tackle challenges such as sustainable forestry, livestock livelihoods, spice production and marketing, ecosystem preservation in Bale and supporting female farmers in combating adverse weather. The wide array and success of each program of Farm Africa Ethiopia adds to the importance of agricultural organizations in Ethiopia.

Agricultural Organizations in Ethiopia

Despite ongoing food insecurity and malnutrition throughout Ethiopia, organizations like Farm Africa, Nuru Ethiopia and ASE improve the situation daily. Major improvements have drastically decreased the numbers of those affected by extreme poverty. Agricultural organizations in Ethiopia create positive and lasting change locally and nationally and their importance cannot be overstated.

– Carlie Duggan

Carlie is based in Newtown, PA, USA and focuses on Global Health for The Borgen Project.

Photo: Pixabay