Archive for category: Global Poverty

Key articles and information on global poverty.

Poverty Reduction and Population Decline in Bulgaria

Population Decline in BulgariaBulgaria faces significant economic challenges, being one of Europe’s least affluent nations and currently the poorest in the EU as of 2023. A key hindrance to mitigating poverty is the nation’s remarkable population decline—the highest globally. Since 1990, Bulgaria has lost around 2 million people, roughly a quarter of its population. The U.N. predicts a further 23% decline by 2050. This demographic decline results in a diminished workforce, impeding the emergence of new businesses and industries that could offer economic opportunities and aid in poverty reduction.

Additionally, Bulgaria faces a distinctive challenge related to population decline, with emigration playing a significant role. Over the past decade, the country has experienced a noteworthy 11% reduction in population solely due to emigration. To gain insights into this phenomenon, The Borgen Project interviewed a young Bulgarian student currently residing in the U.K., to understand the perspectives of young Bulgarians, including himself, who choose to leave their homeland. Due to the current political landscape, the interviewee has asked to remain anonymous.

Why Bulgarians are Leaving

Following the transition from communism to democracy in 1990 in many ex-communist states, Bulgaria underwent a similar change. However, according to the interviewee, in his opinion, while the surface-level political structure shifted to democracy, the “underlying structure” of the communist system persisted. He notes, “It’s just a surface-level structure that’s gone.”

In Bulgaria, the democratic transition saw the election of the communist party, now renamed the Bulgarian Socialist Party. This continuity in governance style has contributed to widespread corruption. Individuals associated with the former communist party often receive substantial portions of the country’s resources, creating a significant wealth gap where ordinary citizens have limited access to capital. the young student describes a situation to illustrate this point:

“You would see your parents who have worked their whole lives as teachers getting €200 monthly pensions, right? And you’d be like, what’s happening? And then, you see this 18-year-old kid driving a Ferrari or a Lamborghini down the street.”

Hence, as he notes, it is not just that people are leaving because the country lacks resources, in fact, Bulgaria’s total GDP rose by 3.4% in 2022.  But, for more than 30 years, the wealth of the country stayed in the hands of a few corrupt individuals and families. Thus, the average young person believes they have no hope of achieving better prospects. As the interviewee noted, “They’ve had that hope crushed for 30 years.”

Overall, his sentiments about corruption reflect further data on this issue. For example, according to Transparency.org, a site that measures the prevalence of corruption based on the perceived level of corruption (CPI) among a country’s population, Bulgaria has the second highest level of corruption in the EU in 2022 and its CPI has remained roughly the same since 2012 when the metric was first recorded.

Impact of Population Loss on Poverty in Bulgaria

As mentioned earlier, Bulgaria faces challenges in reducing poverty due to a decline in population. Since 1990, there has been a significant decrease in the percentage of people aged 0-17 and 18-65, while the proportion of those 65 and over has risen. This demographic shift, with more people leaving, especially the working-age population, impacts economic output and hinders growth. Additionally, Bulgaria experiences a “brain drain” as highly skilled workers seek better opportunities and education abroad, contributing to economic development elsewhere. This trend limits Bulgaria’s potential for large-scale economic growth and industry expansion.

Potential for Change

Despite the ongoing population decline and the persistence of corruption in Bulgaria, one approach to address this challenge involves urging international action against corrupt individuals within the country. Earlier this year, both the U.K. and U.S. governments imposed significant sanctions and travel bans on several high-ranking Bulgarian officials, including the country’s wealthiest individual, accused of engaging in corrupt practices. While these sanctions alone may not entirely eradicate corruption, they signal a commitment from the international community to hold those involved accountable. This, in turn, could potentially contribute to stemming population loss by instilling hope among Bulgarians for a corruption-free future.

Another way to help boost economic growth and reverse the rapid population decline in Bulgaria could involve convincing successful Bulgarians abroad to come back to Bulgaria to contribute to its economy by opening up new businesses and industries there. In fact, multiple organizations have recently been established by former Bulgarian expats. One former Bulgarian expat, Hristo Bodazhiev, founded an organization called Tuk Tam in 2008, which aims to encourage Bulgarians living abroad to come back through the spread of positive news about Bulgaria’s economic progress as well as by helping them find vocational and educational opportunities back in Bulgaria through job fairs and scholarship offers. Moreover, another former expat, Petya Kertiova has created a show called “The Returnees,” which is dedicated to showcasing success stories of people who have returned to Bulgaria from abroad.

Looking Ahead

The declining population in Bulgaria poses a challenge to poverty reduction efforts, as it results in a loss of both highly and low-skilled workers from the economy. Understanding why many Bulgarians choose to leave their country could be crucial in enabling international organizations to address these trends. The interviewee’s insights shed light on the reasons behind the emigration of young Bulgarians, offering valuable information for the international community to work toward reversing this trend and, consequently, reducing poverty in Bulgaria.

– Athan Yanos
Photo: Flickr

War in Ukraine Worsens Poverty in Moldova

Ukraine Worsens Poverty in Moldova
Moldova is a small, landlocked country in the Balkan region of Europe. Because the nation borders Ukraine, Russia’s invasion of Ukraine in 2022 has worsened poverty in Moldova. The nation gained independence from Russia over two decades ago but still relies heavily on trade with Russians. Thus, trade sanctions and inflation brought about by the conflict make it difficult for many Moldovans to make ends meet, especially in rural communities. 

Trade

As one of Europe’s poorest countries, Moldova is arguably the most affected nation by the nearby war. If Moscow gains Moldova’s capital of Chisinau, it would provide them with another front against Ukraine. Russia is thus trying to regain control of Moldova, but Ukraine’s defense has so far prevented further military seizure. Still, Russia has placed immense economic pressure on Moldova by cutting imports and exports, which makes it difficult for the nation to sustain itself. 

Russia’s government, the Kremlin, has banned imports of farm produce from Moldova. As 10% of Moldovan exports go to Russia, that leaves a large dent in the nation’s GDP. About a fifth of Moldova’s agricultural products typically go to Russia, but due to the recent sanctions, those products are staying at home, resulting in a loss of income. Products like apples, of which 100,000 tons are currently in storage, must be sold within the next couple of months before the harvest begins. 

Rural Communities 

The lack of international sales for agricultural products directly impacts poverty in Moldova, specifically within the farming community. Farmers who rely on shipments to Russia suffer from a severe loss of profits. 

Halts on fuel and fertilizer exports heavily impact rural communities. Moldova used to import more than 90% of its seeds, fuel and fertilizer from Russia and Ukraine. However, some 33,000 farmers do not have access to those products due to the war. Without the fertilizer needed to grow their crops, rural farmers are essentially left jobless. That also means consumers who rely on their crops lose access to that food source. The National Ministry of Agriculture and Food Industry (MAFI) estimated that the production of staple foods like wheat, corn and barley will drop by 30%.

Inflation

Along with cuts on fertilizer exports, Russia’s state-owned gas supplier cut natural gas shipments to Moldova by 60%. Because of that decrease in supply, Moldova’s natural gas prices increased sevenfold, and electricity prices quadrupled. 

Energy bills account for more than 70% of household incomes, making it difficult for families to leave enough room in their budgets for other necessities. Not to mention, dependence on energy imports is driving inflation in other aspects of the economy. Many grocery store prices have doubled, which also means that sales are declining. Store owners and consumers are both suffering: Opinion polls show that more than 40% of Moldovans are struggling with basic costs of living, and an additional 21% cannot afford the bare minimum. 

Help From Abroad 

Moldova needs help, and the struggles of Moldova’s people are receiving recognition internationally. The European Union, for example, committed to sending Moldova €1.2 billion euros in aid in 2021. The union announced that €600 million could be made available to help Moldovans in the coming years. The United States has also sent $267 million in emergency help for Moldova’s energy crisis from the war in Ukraine. 

It is essential that the nation of Moldova is not forgotten amid the war in neighboring Ukraine. Organizations like Action Against Hunger and People In Need work to improve food and energy crises in hopes of reducing poverty in Moldova. 

– Lindsey Osit
Photo: Wikipedia Commons

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The Plan To Fight Hunger in Sudan

Hunger in SudanOn September 9, 2023, the Food and Agriculture Organization (FAO) launched a new plan to tackle hunger in Sudan. The Emergency Livelihood Response Plan (ELRP) for Sudan will support Sudanese individuals affected by the ongoing civil war.

To fight hunger in Sudan, the FAO will boost agricultural prosperity in the distribution of supplies, including seeds and treatment equipment for livestock. The plan aims to support 10.1 million people in Sudan and claims it will require $123 million in funding to implement over the next 12 months. 

Food Security in Sudan

The food situation in Sudan has worsened since the outbreak of war on April 15, 2023, when the Sudanese Armed Forces clashed with the Rapid Support Forces in Khartoum. Violence and resulting displacement have significantly impacted the country’s food supply system, which has led to hunger and malnutrition within Sudanese communities. 

With a population of 48.6 million, more than 20 million (42% of Sudanese) are thought to be food insecure. Record high levels of food insecurity have been seen each year since 2020. As a result, the World Food Programme (WFP) has placed Sudan in the highest emergency response category. The Overarching goals of the WFP in Sudan in the wake of the crisis reflect some of the country’s most pressing issues: treatment for malnutrition, the provision of school meals and the wider employment of common services — namely, logistics and telecommunication. 

The FAO’s Latest Plan

Four main priorities front the FAO’s new strategy to improve the food security situation in Sudan: high-quality seed, livestock and veterinary support, fisheries support and cash+ modality. A shared action between these branches of support is the plan to target specific households, using data to determine the most vulnerable farmers or fishers. For example, they seek to know who will benefit significantly from the program. 

Cash+ modality is an extensive method of support. For the Sudan ELRP, using cash+ involves a combination of ‘unconditional cash assistance and in-kind support coupled with training during the dry season’ (FAO). It is a two-fold mechanism that will provide varied aid to vulnerable agricultural households. The FAO’s outline for its plan addresses the need for specially designed, time-sensitive assistance to ensure the food security situation in Sudan can improve all year round. 

As it tackles the issue of hunger, the ELRP for Sudan primarily comes under the progress of Sustainable Development Goal 2 (SDG 2), which aims to eradicate global hunger by 2030. The FAO also incorporates other SDGs into its plan for Sudan. For example, it will make progress towards SDG 5 (Gender Equality) in directing priority support towards female-headed agricultural households in the country since these households are statistically more food insecure than those headed by men. 

Conclusion

The FAO has a vast history of achievement, from its conception in 1945 to the present day. Amongst these successes, the FAO helped halve hunger statistics for individuals in Latin America and the Caribbean, currently maintains the largest global statistical database on food and agriculture and eradicated rinderpest. This disease proved fatal to livestock. 

Such a list of past achievements makes the FAO one of the key organizations in the fight to end extreme poverty. The planned improvement of food security and agricultural provisions in Sudan is a step towards advancing humanitarian aims and achieving global equality.

– Alice Weatherley
Photo: Unsplash

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5 NGOs Working in Mali

NGOs in Mali
In under a decade — in 2012, 2020 and 2021 — the West African country of Mali experienced three violent coups d’état that have left the country in a state of crisis. As the United States Institute of Peace states, the country is located in “a volatile part of West Africa,” in which transnational, Islamic terrorist groups such as Islamic State and al-Qaeda operate. Between December 2019 and August 2020, Human Rights Watch found that Malian security forces were implicated in more than 250 unlawful killings of civilians. In 2019, USAID estimated that 49% of Malians lived in extreme poverty, and with the high levels of political instability that continue to wrack the country, Mali’s most vulnerable often rely on the support of the work of non-governmental organizations (NGOs). Below are five of the most important NGOs in Mali working to alleviate poverty and protect and support Mali’s most vulnerable.

1. British Red Cross

As one of the most long-standing NGOs in Mali and the Sahel Region, with its work in the country dating back to 1963, the British Red Cross is “a global network of volunteers, responding to natural disasters, conflicts and individual emergencies.” One of the main ways the British Red Cross supports poverty-stricken Malians is through cash grants. By giving people cash instead of goods, the British Red Cross argues that those families in poverty have the choice to spend their money on what best meets their needs, thus protecting their dignity and their right to make their own decisions that affect their lives.

2. WaterAid

Out of a population of 20.2 million, around 3.5 million Malians lack access to clean water. WaterAid also estimates that around 4,000 children under 5 die each year from diarrhea, a direct consequence of dirty water and poor sanitation resources — around 11 million Malians do not have access to a decent toilet. While the Malian Government has in theory committed to providing everyone in the country with clean water, decent toilets and good hygiene by 2030, the fragile political environment has left a lot of the necessary work to NGOs in Mali.

WaterAid is one of the most important of these NGOs, working directly within Mali to resolve conflicts around water use, promoting good hygiene through art and storytelling, and sharing innovative, low-cost technologies with nomadic groups to promote greater access to clean water.

3. Action Against Hunger

Action Against Hunger is a U.K.-based NGO operating in 55 countries. In 2022, its life-saving programs reached 28 million people around the world. It delivers life-saving care to those impacted by life-threatening hunger worldwide and leads research into how to predict, prevent and treat life-threatening hunger among the world’s poorest. 

Action Against Hunger has been operating in Mali since 1995. In 2022, the NGO had 156 employees working to combat life-threatening hunger in Mali, reaching more than 210,000 of Mali’s most vulnerable. The NGO supports Mali’s communities by helping to build resilience to periods of food shortages, training health workers in Mali to screen and treat children under the age of 5 for malnutrition, improving access to clean water and sanitation, and running mental health support groups.

4. Penny Appeal

Another one of the key NGOs in Mali working to provide poverty relief is Penny Appeal. The NGO works across Asia, the Middle East and Africa, with key programs dedicated to helping the world’s poor, such as building wells, caring for orphans, providing nutritious food to combat malnutrition and delivering emergency aid in response to national crises.

5. Peace One Day Mali (POD-Mali)

Founded in 2011, POD-Mali works to help Mali’s poorest and most vulnerable such as education, peacebuilding, child protection, gender-based violence, women and youth support, health care, nutrition, food security and human rights. POD-Mali is a particularly important NGO in the wake of the 2020 and 2021 coups d’état, as they work to provide humanitarian assistance to children affected by war and conflicts, with an emphasis on psychosocial support, food, clothes, health care, nutrition and education.

The work of these NGOs in Mali has improved the lives of thousands of the country’s poorest. With little governmental stability or public trust in the state, the work of these NGOs is crucial to the continued fight against extreme poverty in the country. 

– Eleanor Lomas
Photo: Flickr

Karya: The Indian Start-up Converting Digital Data to Real Change

Digital Data
In a post-pandemic world, poverty is an increasingly urgent issue. In India, the number of individuals who lie below the national minimum wage threshold increased by 230 million during the pandemic. This is an unprecedented decline in India’s progress in tackling poverty. However, start-ups such as Karya, which advertises itself as “the world’s first ethical data company,” are working hard to get India back on track. Through connecting rural Indians to versatile and accessible digital employment, Karya is converting digital data to real change in tackling poverty, in India and beyond. 

What is Karya?

Taking its name from the Sanskrit “Karya,” or “कार्य,” meaning “work that gives one dignity,” Karya makes its mission abundantly clear: to create impactful solutions for economically disadvantaged communities that are sustainable, innovative and dignified. 

Karya provides Indians living in low-income communities with employment opportunities in the AI and data-creation sector, connecting rural areas to a booming global industry at an hourly wage of approximately $5, more than double the Indian daily minimum wage, all with simply a smartphone. 

Tapping into the increasing innovation and popularity of artificial intelligence (AI), Karya helps meet and connect the needs of cutting-edge companies and some of the world’s poorest individuals in an ethical and transformative fashion. 

Companies creating AIs such as ChatGPT are in need of datasets — collections of textual or vocal data — in languages without a strong digital presence. Additionally, with India boasting 25 writing systems and at least 50 native languages which make up a substantial amount of writing and publishing, it seems there is no better community primed and ready to meet the needs of tech companies across the globe. 

Text prompts are sent to Karya workers through an app. Workers then record themselves speaking in their native language and upload this to the app, for which they are immediately paid. After recordings have been quality-checked over the course of a few days, workers then receive a 50% bonus. These recordings are used to create ethical data sets which Karya sells to clients working on AI models. 

The Karya Promise

The “Karya Promise” lays out the four key principles that guide the organization in ensuring sustainable and ethical practice. Its aim to prioritize and improve the situations of those in poverty for good is made abundantly clear. 

Through maximizing worker wages and creating datasets that are owned in-principal by employees – allowing them to receive data royalties whenever datasets are resold – Karya not only provides a sustainable source of income for an output that requires little to no skill or training but also equips data collectors with the agency over this output. 

This, combined with a pay-as-you-go system, which means workers are paid immediately, not at the end of each month, provides financial stability on short- and long-term scales. 

Karya is also committed to improving the well-being of its workers. Any profit earned by the company is redirected to the Karya Foundation, which aims to provide stable and long-standing foundations to lift rural Indian communities out of poverty.

This is done through introducing measures including interactive skilling initiatives, hyper-local employment coaching and liaising with organizations across India to carve out apprenticeships and career opportunities. 

For Karya, the key to long-standing and transformative solutions to solving global poverty is collaboration. It forges systems of connection that act as far more than temporary stop-gaps and quick fixes.

The Future

This desire for permanent change speaks to the company’s mission to “create pathways out of poverty.” As Vivek Seshadri, Karya’s chief technology officer and co-founder makes clear, the end goal is not simply to employ rural communities in data work.

Instead, this initial data collection is a stepping-stone to other programs — Karya Learn and Karya Grow — initiatives designed to facilitate the professional development of workers. The programs facilitate introducing wealth to rural and low-income communities by providing the skills to set their workers on a pathway to higher productivity and higher-paid employment. 

Through a strongly principled approach rooted in minimizing poverty rather than maximizing profit, Karya is converting digital data to real change, in India and beyond. 

– Izzy Grout
Photo: Flickr

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Foreign Aid to Lebanon

Foreign Aid to Lebanon
Lebanon is a culturally rich and diverse country in West Asia, with a population of more than 5 million. Following the outbreak of civil war in Syria in 2011, and the deadly explosion in the port of Beirut in 2020, a destabilized political landscape has increased the need for foreign aid to Lebanon.

The European Commission cites the political crisis in Lebanon as a reason for increased poverty statistics in the country: 36% of Lebanese live in extreme poverty, while 90% of Syrian refugees living in Lebanon are said to be dependent on aid to cover basic human needs. 

As a result, various governments and intergovernmental organizations have organized aid to Lebanon. A look at different aid plans from the U.S., the EU and the U.K. showcases the different forms foreign aid can take and how it tackles extreme poverty.

US Aid

On June 14, 2023, the U.S. Agency for International Development (USAID) outlined its latest plans for foreign aid to Lebanon in a press release. USAID announced an additional $17.4 million in funding to help combat what it deems “deteriorating human conditions” in Lebanon, which it claims currently affect around 2.26 million people.

The press release also detailed how this particular boost in funding will be split between three different organizations fighting Lebanon’s current humanitarian crisis. It announced that $11.1 million will go toward the UN World Food Programme (WFP), while the remaining $6.3 million will go to two USAID partners: Relief International and International Medical Corps.

Since October 2022, the U.S. has provided close to $92 million in foreign aid to Lebanese citizens, and refugees from all countries currently in Lebanon. 

As the largest contributor in USD to the Official Development Assistance (ODA) budget, providing $55.28 billion in 2022, the U.S. has continued to assist Lebanon through other international programs. According to the World Bank, 2021 saw the biggest spike since the end of Lebanon’s civil war in 1990 in its recipients of ODA, receiving 6.9% of its GNI to help its impoverished populations. 

EU Aid

On a visit to Lebanon on March 30, 2023, European Commissioner for Crisis Management Janez Lenarčič announced €60 million in humanitarian aid from the EU to help those in the country most in need. According to the EU, money from this package will go towards funding food, education, health, cash support and disaster preparation, providing aid to the Lebanese population and Syrian refugees. While admitting that the lives of those in Lebanon could not be drastically improved until political unrest is resolved, Lenarčič claimed that “humanitarian aid is essential for the victims of Lebanon’s multiple crises.” 

Since 2011, the EU has provided more than €3 billion towards improving the situation in Lebanon, including almost €860 million in humanitarian aid alone.

As well as this, several EU member states make up some of the highest contributors to ODA by percentage of GNI. In 2022, Luxembourg, Sweden and Germany all surpassed the contribution target of 0.7% of GNI. 

UK Aid

The recent U.K.-Lebanon development partnership summary (published July 17, 2023) outlines how the country’s foreign aid to Lebanon is targeting the most vulnerable populations facing the effects of the humanitarian crisis. 

Like the U.S., the U.K. is a supporter of UN programs helping those on the ground in Lebanon, including the WFP’s Syrian refugee response in Lebanon, which provides ‘multi-purpose cash assistance’ to support refugees’ basic needs. In the financial year 2022-23, the U.K. claims its individual monetary aid to the program reached 27,180 households per month for 3 months. 

The government summary also emphasizes the positive effect of U.K. contributions to ODA reaching Lebanon. Between 2016 and 2023, the U.K.’s £78 million in ODA support to Lebanese-launched Reaching All Children with Education (RACE) was partially credited for the maintenance of schooling in 2022 for around 500,000 Lebanese and refugee children. 

Conclusion

Foreign aid to Lebanon has been widespread in 2023 and demonstrates a continued international effort to fight the extreme poverty that the current humanitarian crisis caused.

While the political situation within Lebanon’s borders and in neighboring Syria remains unresolved, positive action is being taken throughout the nation as a result of foreign aid to alleviate the impact on hundreds of thousands of vulnerable populations.

– Alice Weatherley
Photo: Unsplash

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How the World Bank Leverages AI To Help Low-Income Families

World Bank Leverages AI
Technology has been a lifesaver in developing countries during COVID-19, helping to maintain essential services and keep companies in business as the world went completely online. It has also offered a glimpse of a brighter future, one in which income gains and employment are driven by technologies such as artificial intelligence (AI).

The economic challenges brought on by COVID-19 and more recently, the war in Ukraine, have resulted in a marked slowdown across the globe. It is estimated that almost 7% of the world’s population will still be living on less than $2.15 a day in 2030, with most in Africa. The need to embrace innovative technologies such as AI could not have arrived at a better time.

Artificial intelligence combines large volumes of data with computing power to simulate human cognitive abilities such as reasoning, language, perception, vision and spatial processing.

The World Bank finances public projects and programs, providing technical advice and analysis, managing financial risk,and financing private sector investments to help countries share and apply innovative knowledge and solutions to the challenges they face. The World Bank leverages AI through multiple avenues, empowering private sectors and governments, to uplift the lives of people in developing nations.

Reducing Poverty and Boosting Shared Prosperity in FinTech

The World Bank leverages AI to address the financial needs of the unserved and the underserved, by empowering companies generating products and services such as credit scoring and targeted advertisements. Companies in Africa such as M-Shwari and M-Kajy are early examples of AI delivering financial services to the poorest.

Predicting and Fighting Poverty with Data

With more than 3.5 billion mobile subscribers in developing countries and thousands of satellites in Earth’s orbit, collecting data to predict poverty and vulnerability is within the reach of scientists, researchers and policymakers. The socio-economic status of an individual can be inferred using past history of mobile phone usage. In resource-constrained environments where censuses and household surveys are rare, this approach creates an option for gathering localized and timely information cost-effectively, with machine learning (ML) opening the possibility of using new data sources to measure poverty and vulnerability.

AI in Agriculture

AI-as-a-service solutions have been gaining popularity in recent years. A machine learning app, Nuru, has been used on farms in Kenya, Mozambique and Tanzania to identify leaf damage in photos and send information to help monitor the presence of an invasive pest that threatens farm revenue and food security across East Africa.

AI in the Energy Sector

In Africa, 600 million people (53% of the total population) live without electricity, with conditions exacerbated in the sub-Saharan region. However, the continent has abundant solar, wind and bioenergy resources. Azuri Technologies has developed a solar-powered, innovative, pay-as-you-go model for 12 countries across Africa. The service utilizes AI to optimize power consumption — it learns home energy needs and adjusts power output accordingly by automatically dimming lights, slowing fans or managing how quickly devices are charged.

Barriers to Economic Growth

The lack of AI expertise and insufficient data often increase the cost of implementing AI solutions in low-income countries. The International Finance Corporation (IFC), a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Through venture capital investments and investments in online educational platforms, local communities are empowered to take advantage of this technology to improve skills and gain access to AI-related solutions. However, private sectors cannot operate alone in emerging markets. Government support in establishing data and infrastructure, open access and regulatory governance to protect privacy and security are needed to aid the private sector specializing in AI solutions.

The World Bank Leverages AI Through Policy Mandates, Global Research and Training

Measuring AI Development is aided by Development Economics Analytics & Tools (DECAT), a prime research arm at the World Bank. The role of DECAT is to promote a global understanding of development policies and programs through analytical insights and recommendations.

The Center for Effective Global Action (CEGA) at UC Berkeley and DECAT partner and hold annual conferences on key topics, including the role of mobile data in global development research, emerging data and methods in global health research as data, infrastructure and governance hold the keys to enabling poor countries to embrace AI for economic growth in the coming years.

The World Bank has launched the AI for Development initiative and an Artificial Intelligence Lab. Through skills-building workshops and training programs on big data, AI and decision science, these programs work to enhance the skill sets of decision-makers with tools that rely on these technologies.

The UN’s AI for Good Global Summit 2023, a conglomeration of subject matter experts from tech giants, international universities and organizations, calls for innovative ways to make AI useful in addressing global issues.

Artificial Intelligence is Here to Stay

While the gaps in governance, data and infrastructure are key factors that need to be addressed on the global stage, the World Bank leverages AI in innovative ways to demonstrate the good the technology could bring to low-income communities.

– Sudha Krishnaswami
Photo: Flickr

Higher Education in the Dominican Republic

Higher Education in the Dominican Republic
The Dominican Republic is home to the oldest university in Latin America, the Autonomous University of Santo Domingo (Universidad Autónoma de Santo Domingo—UASD). While UASD offers free education through government funding, there are numerous other universities and institutes across the country. Enrollment in higher education programs in the Dominican Republic continues to increase steadily.

The Autonomous University of Santo Domingo

Higher education in the Dominican Republic has a rich history that spans more than 400 years. Dishearteningly, the UASD, although established for more than four centuries, obtained its first patent in 2020.

However, the UASD was the Dominican Republic’s only university until the late 1980s when there were a recorded 26 institutions and 120,000 students enrolled in higher education programs. In 1998, these numbers only went up, as a new record revealed a total of “29 universities…and 7 institutes with a combined total enrollment of 213,200.”

In the 21st century, the Dominican Republic is experiencing the effects of higher education. According to the American Association of Collegiate Registrars and Admission Officers (AACRAO), “literacy among the 8,715,000 citizens is nearly 85% (up from 70% in [the] 1980s).” Additionally, there was a notable increase in tertiary school enrollment, with a recorded 61% enrollment rate in 2019.

The Ups and Downs

While higher education enrollment in the Dominican Republic has increased, there are concerns. The country’s economy relies heavily on tourism and hospitality, industries that often do not require advanced education or technical skills. As a result, higher education has not been a top priority.

Dominican Today addressed another alarming statistic. In this article, Dominican Today gives insight into “Report Zero National System of Scholarships and Educational Support Credit,” a report published by the Dominican Republic’s Ministry of the Presidency. This report reveals significant information on the employment trends of professionals with various educational levels. According to this report, individuals with higher educational degrees “take an average of 4.07 years to secure their first job after graduating.”

The Solution

Although the statistics for securing a job after more than four years can be startling, there is hope in the higher education of the Dominican Republic. It all begins with the National Council of Higher Education (Consejo Nacional de Educación Superior—CONES), an entity legislated in 1983 to formulate and coordinate plans and initiatives for the growth of higher education.

Other issues such as financial gaps can stunt a student’s progress in their educational career. Various scholarship programs have been designed and designated for individuals wanting to further their educational careers abroad. The Dominican Republic’s rural and low-income students have benefited from the economic opportunities provided by a program called Scholarships for Education and Economic Development (SEED) program, funded by the United States Agency for International Development (USAID). 

Other programs such as the Organization of American States (OAS) and the Fulbright Program offer scholarships, grants and financial assistance for those who may struggle economically to fulfill higher education goals. There is even the Margaret McNamara Memorial Fund (MMMF), which specifically awards female students $12,000 a year in order for them to “return to their homeland for two years of service in work that will enhance and foster their country.” 

Leaders in the Dominican Republic can benefit from higher education enrollment, and these programs provide increasingly valuable skills that support economic development. In an upper-middle-income developing nation like the Dominican Republic, an increase in higher education provides reason for hope, as it is essential to development and promotes economic growth for both individuals and the nation as a whole.

– Caleb Picone
Photo: Flickr

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Niger’s Coup and its Repercussions on Foreign Aid

Niger’s coup
While Africa’s so-called Coup Belt may have been enveloped in a period of relative dormancy over the past decade, recent coups and rebellions in the Sahel have reignited concerns over political stability and governance in the region. The 2023 military takeover in Niger serves as one such prominent reminder of the underlying challenges facing the Sahel, highlighting the devastation insurgency can bear on critical aid and developmental support reaching its nations while forcing consideration of alternative routes to attaining regional sustenance and growth.

The Resurgence of West and Central Africa’s Coup Belt

The geographical stretch of West and Central Africa’s Sahel, what is referred to as its Coup Belt, has witnessed a resurgence of its historical tendency towards significant political unrest, characterized by rebellion and conflict, including Niger’s recent 2023 coup.

Turmoil in the Backdrop of One of the Poorest Nations

Within Niger’s harsh landscape, poverty looms large, leading to its Human Development Index ranking as the world’s third lowest in 2023. A staggering 41% of Niger’s population grapples with extreme poverty, while 40% of the state budget hinges on foreign aid.

Pressure on resources essential for sustenance has also been on the rise, with spillover from inflated food prices in Nigeria, the influx of refugees from conflict in neighboring states, as well as the lingering effects of Niger’s 2021 drought.

Additionally, early 2023 reports indicate that Niger struggles with severe food insecurity, affecting more than 3.3 million individuals, with approximately 7.3 million more faced with moderate food insecurity while perched on the edge of worsening conditions. Hence, agitation from the recent coup and its aftermath threatens to plunge a further 28% of the population into an even more dire state of hunger.

The International Reaction to Niger’s Coup

On July 26, Niger experienced momentous political upheaval as the military revolted, detaining President Mohamed Bazoum, suspending the constitution and installing General Abdourahmane Tchiani as the new head of state. The military further established the National Council for the Safeguard of the Homeland, a governing body that took hold of both legislative and executive powers.

Niger’s coup was immediately and vigorously met with international condemnation. Nations and international and regional organizations were quick to respond with varying means of pressure on the governing military to restore constitutional order, primarily through sanctions and rollback on foreign aid and assistance.

Following Niger’s coup, the EU promptly announced a suspension of all budgetary support and the cessation of security collaborations with Niger, a sentiment that reverberated in the individual responses of European governments to the coup.

International and Regional Organizations Respond to the Coup

Prior to the 2023 Coup, Niger had already been heavily dependent on international assistance. With external budget support and loans accounting for almost half its annual budget, foreign aid to Niger constitutes a crucial lifeline for its fiscal operations. Niger receives infusions of nearly $2 billion in development aid annually, making it West Africa’s second-largest beneficiary of international assistance.

Niger also possesses one of the most substantial portfolios within the World Bank in the African region, valued at $4.5 billion. Between 2022 to 2023 alone, Niger received a noteworthy $600 million in direct budgetary support extended by the World Bank.

However, in tandem with the global community after the coup, the World Bank suspended disbursements for most operations in Niger, except specific partnerships. While such measures are aimed at quelling political insurgency, they also bear direct repercussions on the livelihood of Nigeriens. For example, the termination of an ongoing joint cash program established between the Bank and Niger intended to provide support to vulnerable populations, is anticipated to impact an estimated 66,000 Nigerien households.

Regional Sanctions Highlight the Extent of Nigerien Dependency on Foreign Aid

The Economic Community of West African States (ECOWAS) had committed to ending the recent surge of coups within the Sahel region of West Africa. Following the coup in Niger, ECOWAS enforced a series of sanctions, encompassing border closures, cessation of commercial activities, asset freezes and the suspension of financial aid to Niger. The Central Bank of West African States (BCEAO) also took a resolute stance, freezing Niger’s assets and shuttering its local branches due to operational risks.

The ECOWAS sanctions induced far-reaching effects, leading to the cancellation of Niger’s planned $51 million bond issuance in the West African regional debt market, invoking uncertainties over Niger’s ability to meet debt repayments. Additionally, the gravity of ECOWAS sanctions on Niger was exemplified by Nigeria’s cessation of power supply through the Birnin-Kebbi line, causing prolonged power outages in the Capital Niamey, among other cities.

Furthermore, Niger’s landlocked status amplified the impact as neighboring countries strictly enforced border restrictions. Nigeria, which supplies 70% of Niger’s electricity, severed the power link, raising concerns over economic repercussions across all sectors. As Niger’s primary supplier of food imports, the cessation of trade with Nigeria also resulted in a 17% increase in the price of rice within the first week of sanctions.

Nevertheless, a glimmer of hope remains. While ECOWAS had similarly imposed sanctions on Guinea, Mali and Burkina Faso, it eventually lifted them, despite their remaining under military rule.

Hope for Niger

The military government of Niger has announced the reopening of borders with Algeria, Burkina Faso, Libya, Mali and Chad. From among its neighbors, Mali and Burkina Faso have already signaled solidarity by planning a joint official delegation to support Niger. Algeria also emerged as an ally to Niger’s positive trajectory, advocating for a peaceful diplomatic resolution that would enable it to honor its long-standing commitment to building deeper political, security and economic relations with Niger.

Finally, in a broader context, while Western powers exert significant pressure on Niger for the restoration of the deposed president, indications of support for ECOWAS military interference remain scant, as concerns regarding potential immigration flows towards Europe in the aftermath likely deter from the idea.

– Nadia Asaad
Photo: Flickr

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How Transitional Justice Can Eliminate Poverty

Transitional Justice
Transitional justice is a multilevel approach to addressing human rights violations in periods of political transition or post-conflict recovery. The approach’s relevance in poverty reduction efforts stems from an understanding that socioeconomic inequalities are frequently both a cause and a result of conflict. Poverty and inequality may exacerbate grievances that lead to social unrest and violence, while war itself can result in infrastructure loss, displacement and economic disruption for targeted groups. Transitional justice programs can foster stable government and inclusive development by addressing the issues and injustices that underpin conflict and authoritarian leadership.

Accountability

Transitional justice mechanisms, such as prosecutions for human rights violations and truth commissions, not only hold criminals responsible but also act as a deterrence to future breaches. This promotes a culture of openness and good governance, which may prevent corruption, a significant cause of poverty, and create an environment in which public resources are distributed equitably to benefit all citizens.

Additionally, Truth and Reconciliation Commissions (TRC) offer a broader conception of justice enabling truth-telling and reconciliation. For instance, the South African TRC’s work exposed the systemic corruption and human rights abuses of the previous regime. This helped establish a foundation of accountability and transparency, which contributed to addressing the socio-economic disparities inherited from apartheid.

Reparations and Redistributions 

Reparations programs, which include financial compensation, education, health care and land restitution, address the socioeconomic consequences of violence and repression directly. Transitional justice projects can contribute to breaking the cycle of poverty and exclusion by giving survivors and marginalized groups the resources to rebuild their lives, encouraging economic empowerment and social reintegration. Reparation programs are among transitional justice’s most effective tools as they have the potential to offer survivors individualized assistance while simultaneously transforming society’s socioeconomic conditions.

Institutional Reform and Inclusive Development 

Transitional justice is frequently associated with wider institutional reforms such as legal and judicial system overhauls, power decentralization and social reforms. These societal improvements have the potential to strengthen the rule of law, promote good governance and provide a favorable atmosphere for long-term growth. The inclusive and participatory decision-making procedures that frequently follow these changes ensure that marginalized people’s needs and views are taken into consideration, contributing to more equitable development. Indeed, transitional justice can involve the change of institutions and laws that have used violence and prejudice to keep people out of society.

Reconciliation and Social Cohesion 

Transitional justice methods promote open communication, truth-telling and the recognition of past wrongs by investigating patterns of human rights abuse and providing a narrative. 

This can assist in the healing of wounds caused by violence and division, generating a feeling of solidarity among previously polarized populations. Social cohesiveness is critical for stability and development in that it facilitates collaboration, minimizes the likelihood of recurrent violence and provides a platform for collaborative efforts to overcome poverty and inequality.

By fostering accountability, reparations, institutional reform and reconciliation, Transitional justice forges pathways toward equitable development through political and peace transitions. Although the implementation of said mechanisms is still limited, transitional justice has the potential to have a transformative impact on reducing poverty during political and peace transitions.

– Hannah Klifa
Photo: Flickr