Archive for category: Global Poverty

Key articles and information on global poverty.

How the EU is Helping Alleviate the Division in Cyprus

Division in Cyprus
Cyprus has a history of continuous external attacks and invasions. The most recent, the Ottoman and British invasions, largely explain the country’s current situation. That is the division in Cyprus between the Greek part and the Turkish part. Despite the complicated situation of a divided Cyprus, the country became a member of the EU in May 2004. Partition is a reality in Cyprus for more than four decades already so it is important to see how the EU is helping with this situation, mainly explaining how it is dealing with the core challenges and if there are any chances of reunification.

Historical Background

Since the start of British rule and the defeat of Ottoman influence, the pressure for Greek independence was present. By 1955, the Greek government raised the issue of self-determination and in April 1955, the EOKA revolution began. The British had trouble repressing the Greek Cypriots (GC) by themselves so they recruited Turkish Cypriots (TC). The British Empire not only prevented the island from joining Greece but increased the enmity between the GC and the TC which provoked the division in Cyprus.

The division in Cyprus started after it gained independence in 1960, but differences soon proved that ordinary coexistence was impossible. Almost 15 years later, negotiations were still stagnant. Therefore, in 1974, a 220 km long frontier, known as the Green Line emerged, separating the TC and GC regions. This Berlin-style iron curtain suggested that the only way to achieve peace is by granting the two regions the capacity to self-govern. In 1983, the Turkish side of Cyprus declared its independence as the Turkish Republic of Northern Cyprus. However, it remains a state that only Turkey recognizes.

What are the Challenges?

According to a report that the Congressional Research Service published, the per capita GDP in Cyprus by 2019 was $30,000 while in the north, it was more than half that amount, approximately $14,000. The TC has an open, free market economy, however, it is largely dependent on Turkey as a trading partner. TC’s diplomatic and economic isolation has limited its business opportunities and capacity to grow. The lack of political stability and recognition by other countries increases the costs of foreign investment in the region and makes it less attractive. Therefore, it also has to rely on Turkey for financial assistance.

This dependency has led to an unbearable situation in Northern Cyprus due to the Turkish Economic crisis. Inflation has sky-rocketed in Turkey, especially over the past few years. The Turkish Lira is 18.6 against the U.S. dollar, as of November 2022. This means an unprecedented fall in the value of Turkish currency, and thus, everything imported becomes more expensive.

Meanwhile, this situation in Northern Cyprus led to worrying shortages of basic goods in the region, including fuel. During the first half of January 2022, electricity cuts in Northern Cyprus were an ongoing thing. Constant power cuts, sometimes even daily mean no heating which severely affects a person’s quality of life. Furthermore, students are having difficulty studying during long periods of power cuts, making education harder for many.

The Ways the EU is Helping

When Cyprus asked to join the EU the problem was whether to recognize Cyprus as part of the EU or recognize the division in Cyprus and the existence of the Turkish state on the island, thus being the first power to recognize it apart from Turkey. Cyprus became a member but the EU only recognizes the Greek part of the island. Northern Cyprus, which the TC populate, is outside EU legislation and remains an isolated region in international affairs.

However, ever since Cyprus joined, the EU has stated its commitment to help alleviate the isolation that the TC suffered. Therefore, it established an EU Aid Programme for the Turkish Cypriot community whose ultimate aim is to encourage reunification. The specific objectives in order to achieve this are:

  • Improving the economic situation in the TC.
  • Promoting communication and cooperation with the GC.
  • Establishing relations with other countries.
  • Preparing them for EU legislation.

From the start of the Programme until 2018, the EU dedicated almost €520 million to improve the situation for the TC region. Furthermore, even though EU legislation does not allow the TC to trade freely with EU members, since 2004, it has allowed all North Cyprus products to be sold to the GC and through them to other member states, according to a Congressional Research Service report. Due to this allowance, the EU became the largest trading partner after Turkey.

On the other hand, the relationship that has emerged between Turkey and the EU since the accession of Cyprus as a member is also important. In 2004, Turkey started negotiations to join the EU. Indirectly, the best way to help the situation in divided Cyprus is to change Turkey’s attitude towards the problem, according to International Council. Pushing for negotiations in Cyprus, rather than defending the separation would be good proof that Turkey is ready to make changes in favor of joining the EU.

However, up until today, Turkey’s accession negotiations have frozen. For Turkey, the EU means an opportunity to improve the economic problems in the country and for the EU, the accession of Turkey ensures a way of transforming the country’s practices into respecting democracy, rule of law and human rights. Reaching an agreement with these unnegotiable conditions has been difficult for Turkey which is clearly in democratic backsliding.

What the EU could do to revive democracy is clearly limited and depends greatly on the country itself. Therefore, reunification in Cyprus is a matter that has to wait but the EU has been helpful in stabilizing the problem, supporting the TC community, and avoiding violent confrontation.

– Carla Tomas
Photo: Wikimedia Commons

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TikTokers Raise Awareness About the Ukraine Crisis

TikTokers Raise Awareness
The war in Ukraine continues months after the Russian invasion in February 2022. With no reconciliation in close sight, especially after recent Russian missile strikes on Ukrainian cities in early October 2022, humanitarian aid is urgent. The Office of the United Nations High Commissioner for Human Rights (OHCHR) estimated a civilian death toll of 6,430 by October 30, 2022. TikTokers within Ukraine are using the TikTok app to report on the events unfolding in Ukraine and document their experiences. Through this social media platform, TikTokers raise awareness about the Ukraine crisis and publicize calls for aid to Ukraine.

This type of news dissemination via short videos is gaining popularity among the younger generations not only because of the quick dissemination of news but because of the first-person accounts of the war and even the use of humor by Ukrainians on the ground.

First-person Accounts of War

Johnny Jen, a travel vlogger living in Ukraine during the Russian invasion, had some insight into using social media to show the effects of war. Jen told Insider that platforms like TikTok and YouTube have already begun to “replace traditional media and the news,” especially among the younger generation. A 2019 Reuters Institute study confirms this with a finding that individuals younger than 35 feel “traditional news media no longer seems as relevant or as dominant when it comes to news content” in comparison to social media.

University professor Damian Radcliffe also commented on this trend, telling Insider that the “informal feel” of these short videos tends to resonate as more “authentic and raw” to a younger audience.

Humor as a Coping Mechanism

The humor sprinkled into this type of content draws the attention of people using TikTok. Ukrainian Lisa Lysova has garnered a million views on a TikTok dance video she created after waking up to “sounds of explosions” when Russia invaded the nation. She says the use of humor is how she copes with the stress of the crisis.

Alina Volik, who is also a TikToker in Ukraine, says this humor helps Ukrainians “bond,” especially amid the war. She has 76,000 followers who watch her videos, which range from jokes that the Ukrainian president is the country’s “psychotherapist” and visiting empty stores in Ukraine as “entertainment.” This is a way for Ukrainians to relate to one another.

The Future of Social Media News Dissemination

With distrust in local media lurking over the past few years, these short videos are gaining attention. Survey results from Reach3 Insights show “three-quarters of Generation Z said TikTok has helped them to learn about social justice and politics, while the same number said the social video app helps them stay current on the news,” Marketing Dive reported.

While TikTokers raise awareness about the Ukraine crisis, countries are providing donations to support Ukrainians. On October 6, 2022, USAID Administrator Samantha Power announced that the U.S. will provide $55 million worth of financial aid to support heating infrastructure in Ukraine as winter approaches. The USAID website says that “This assistance will support repairs and maintenance of pipes and other equipment necessary to deliver heating to homes, hospitals, schools and businesses across Ukraine.” From February 2022 to October 2022, the U.S. supplied $1.5 billion worth of humanitarian aid to people in Ukraine and surrounding countries.

Through TikTok, Ukrainian influencers are bringing attention to the issues impacting Ukraine, which could garner more foreign aid and help from humanitarian organizations.

– Marynette Holmes
Photo: Flickr

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How Fiscal Policy can Reduce Poverty

Fiscal policy
In developing nations, as well as nations recovering from a crisis such as the COVID-19 pandemic, fiscal policy is an instrumental tool in revitalizing the economy and alleviating poverty levels. The policies are more than simply “good” or “bad” economics as they are key indicators of a nation’s true political priorities.

In low and middle-income nations, foreign aid and debt relief are invaluable in uplifting their economies. On the other hand, the contributions cannot be fully effective without an effective fiscal system. According to the United Nations, a good fiscal policy centered around poverty reduction, reconstruction and growth will focus on raising the growth rate and fostering lasting economic stability. 

Rising Growth Rate

The International Monetary Fund (IMF) emphasizes that “economic growth is the single most important factor influencing poverty, citing a recent study of 80 countries that revealed that the income of the bottom one-fifth of the population increased in exact proportion with the overall growth of the economy as measured by per capita GDP. In countries recovering from crises, a rising growth rate is one of the most effective ways for an economy to bounce back.

Key Fiscal Policies that Can Promote Economic Growth

  • Shifting Government Spending Away from Subsidies: The World Bank categorizes subsidies as a short-term solution and has indicated that they are typically politically popular because the benefits distribute widely. On the other hand, the World Bank reported that “about half of spending on energy subsidies go to the richest 20%,” as they tend to consume more energy and receive more benefits, leaving the lower-income households with little to show.
  • Investment in Cash Transfers as an Alternative to Subsidies: There is increasing data showing that direct cash transfers are a better solution to important long-run investments within households, such as education. These transfers are more beneficial to the bottom 40% and can stimulate economic activity within communities, and indirectly increase government revenue in both the short and long-term through higher tax revenue. 
  • Implementing a Progressive Tax Structure: A progressive tax structure enables governments to increase welfare benefits, such as unemployment, food stamps and housing benefits to the poor. Tax revenue sources do not change rapidly and improved progressivity in personal income tax, corporate, property, health and carbon taxes offer feasible ways to raise revenue without worsening conditions for the poor. Furthermore, nations may consider indirect taxation, as some of the above methods may not be as effective due to the informality of work in certain economies. Progressive tax structures are most effective in upper-middle-income countries. 
  • Having a National Minimum Wage: National Minimum Wages directly benefit the lowest-paid workers in an economy and reduce wage inequality. A universal basic income (UBI), wherein all citizens receive a weekly benefit to ensure a minimum income guarantee may also be effective.

Economic Stability

Prioritizing spending with long-term impacts is vital in creating a self-sustaining economy that alleviates poverty. Good policies will vary in different country contexts while acting with the future in mind even in crises, despite the fact that the benefits will come to fruition later. Below are some fiscal concepts to stabilize a nation after a crisis and to better prepare for any future challenges. 

  • Debt management is essential to maintain the “fiscal space” for crisis recovery and stabilization. Regulatory reform for financial markets, debt transparency and the implementation of a common blueprint for debt relief and restructuring are useful tools for properly managing national debt. 
  • There are many elements that can equip countries with a strategic plan for an unknown future crisis. First, expanding the reach of automatic stabilizers, such as employment guarantee schemes in nations with a large informal sector, in case of crisis. Setting up adaptive cash transfer programs that can be scaled up when necessary is also a good preparatory measure. 
  • Research and improved data, particularly on the costs and ramifications of certain policy implementations, are essential to maximizing the effectiveness of these policies. Long-term evaluations and research can provide decent indications of long-term outcomes, which is important in deciding which policies are best for unique country circumstances. 
  • In developing economies, a focus on education and diversification of the economy from agriculture to manufacturing fosters a more independent and stable economy. Increased government spending on education cultivates a higher-skilled workforce, and a push towards manufacturing pushes economic development, though proper skills and infrastructure are necessary to accomplish this.

Looking Ahead

Fiscal policy shaped around economic growth and the reduction of inequality has the potential to make great strides toward minimizing poverty. There are limits to the types and degrees of these policies in each country. Therefore, other national policy reforms implemented in tandem with economic policies lead to the best outcome in stimulating growth. Regardless of fiscal policy, foreign aid and international cooperation are invaluable in reducing poverty levels in low-income nations and around the globe.

– Carly Ryan Brister
Photo: Flickr

5 Facts About Syria’s Fight Against Cholera

Fight Against Cholera
Syria is in the midst of a cholera outbreak that has resulted in more than 75 deaths as of October 2022. Infecting more than 20,000 people, the current outbreak is spreading throughout Syria’s 14 governorates and bordering countries. Fortunately, the World Health Organization (WHO) and other U.N. agencies are currently mitigating the issue by creating treatment centers, providing chlorine dosages, and raising awareness about sanitation practices. To better understand the crisis, here are five facts about Syria’s fight against cholera.

5 Facts About Syria’s Fight Against Cholera

  1. Syria’s water crisis initiated the outbreak. Many researchers have linked the outbreak to the Euphrates and a lack of effective water infrastructure. According to UNICEF, Syria’s decades of war have resulted in the destruction of effective water and sanitation systems, causing 47% of Syrians to depend on alternative water sources. Seeing as how 70% of Syria’s “discharged sewage is untreated,” millions of people are at risk for catching diseases such as cholera. In addition to a lack of water and sanitation infrastructure, Syria faces undeveloped power supplies and annual droughts, further exacerbating the water crisis. As more households draw unsafe water from the Euphrates and resort to untreated, alternative water sources, Syria’s fight against cholera is going to become more difficult to control.
  2. Turkish troops control the water flow. In addition to the natural and historical causes of Syria’s water crisis, the politics behind the crisis has hindered water from flowing to certain towns, perpetuating sanitation issues and diseases across regions. Numerous Turkish troops occupy strips of land in northeast Syria and Turkish officials have “practically turned off the spigots.” As a result, Syrians must fight for limited water from wells, exacerbating sanitation issues and directly contributing to the spread of cholera.
  3. Contaminated food is exacerbating the crisis. Untreated water carrying cholera has made vegetables more prone to contamination. Because food is already scarce in Syria, households are often willing to buy contaminated vegetables just to satisfy their hunger. Thus, millions of people are consuming contaminated vegetables, spreading cholera to their families and communities.
  4. The cholera outbreak has spread to neighboring countries. Because of its proximity to Syria, Lebanon is facing the consequences of Syria’s cholera outbreak. As of late October, Lebanon’s Ministry of Public Health recorded 803 cholera cases and 11 deaths, with children under 14 making up the majority of the cases. Similarly, Iraq has seen a rise in cholera cases, and authorities also fear that Jordan will face a similar outbreak.
  5. The Syrian health ministry is currently mitigating the issue. Fortunately, the Syrian health ministry, with support from the World Health Organization (WHO) and UNICEF, is working to alleviate the crisis. Public health officials have created camps in high-risk areas, delivered 4,000 diagnostic tests and increased response capacity to protect Syrian communities. Furthermore, organizations are actively strengthening border inspection measures to prevent the cholera outbreak from spreading to more neighboring countries.

Looking Ahead

Although Syria and Lebanon continue to experience thousands of new cases daily, health ministries, WHO and non-governmental agencies are facilitating Syria’s fight against cholera. As more organizations partner to combat cholera, there is hope that the outbreak will begin to slow down.

– Emma He
Photo: Unsplash

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Political Instability in Burkina Faso Jeopardizes Aid

Instability in Burkina Faso
After the Burkina Faso September military coup, United States President Joe Biden cut Burkina Faso from The African Growth and Opportunity Act (AGOA). The political instability in Burkina Faso that prompted the AGOA removal designates Burkina Faso as a blacklisted, non-democratic nation. The recent political instability in Burkina Faso led to the loss of U.S. trade, economic aid and military support.

AGOA is U.S. legislation approved in May 2000, to support sub-Saharan African economies and improve economic relations between those countries and the U.S. The AGOA provides sub-Saharan African nations with U.S. duty-free access to more than 1,800 products. That allowance is beyond the more than 5,000 duty-free products under the Generalized System of Preferences program.

Background of Political Instability

Political instability and limitations in both trade and humanitarian aid are not new issues in Burkina Faso. In fact, the September coup was the second one in 2021. Army captain Ibrahim Traore seized power from military leader President Paul-Henri  Damiba in September, citing “his inability to deal with an armed uprising in the country that has worsened in the past nine months.” However, Burkina Faso was already experiencing effects from the first coup, in which Damiba orchestrated an uprising against President Roch Marc Christian Kabore in January. At that time, the U.S. paused a $450 million aid effort.

The political instability in Burkina Faso could exacerbate already desperate conditions. During seven years of radicalized military terror with connections to ISIL and al-Qaeda, the hunger crisis intensified. In fact, the United Nations has even reported that “the humanitarian situation in Burkina Faso has become so dire that some women and children have eaten only leaves and salt for weeks.” U.N. Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, Martha Griffiths claimed that “Growing insecurity and blockades in many areas have left communities cut off from the rest of the country and facing growing hunger. Aid workers are struggling to reach these people who need assistance.”

Economic and Military Impact of Political Instability in Burkina Faso

The removal of Burkina Faso from the AGOA is particularly relevant for those concerned with U.S. legislative foreign aid decisions because legally if the U.S. State Department determines a democratically-elected government experienced an unconstitutional removal, the U.S. must suspend all non-humanitarian aid. Importantly, the U.S. is Burkina Faso’s largest international donor.

Burkina Faso also lost access to the markets of Economic Community of West African States (ECOWAS) markets. ECOWAS is the trade union of West African states and it strongly condemned the coup and pushed for elections as quickly as possible.  It claimed that Burkina Faso was close to restoring constitutional order so the coup was incredibly “inopportune.” Journalist Sam Mednick  claimed, “If Traore is not going to be able to show tangible progress quickly, people say he’s going to be ousted just like his predecessor.”

Militarily, the U.S. also provides surveillance, intelligence, air support to the French who intervened against militants in the Sahel. The U.S. also provides intermittent training to Burkina Faso’s security forces. Elizabeth Shackelford, a senior foreign policy fellow at the Chicago Council on Global Affairs suggested that because military support has not proved productive, the U.S. and its partners should put funding and effort into supporting democracy-fostering institutions.

Positives

Luckily, the European Union (EU) is still earmarking funds for aid in Burkina Faso. Specifically, the EU has set aside 52.4 million euros to address food insecurity, malnutrition, water, sanitation, hygiene, education and disaster preparedness. International non-governmental organizations will also still be able to provide aid. For example, Save the Children focus on Burkina Faso education, public health and protection. Specifically, for public health, Save the Children advocates for “universal access to health care and an increase in the health budget.” In regard to nutrition, it supports food assistance programs. For malnutrition, it provides screening and long-term care for affected children and families.

Outlook for the Future

Political instability in Burkina Faso is jeopardizing specialized aid to fight jihadism. Burkina Faso’s recent unconstitutional coups resulted in the cessation of all non-humanitarian aid in compliance with U.S. law.  Fortunately, the EU and international non-governmental organizations continue their support for Burkina Faso’s citizens plagued by political instability and its effects. Hunger, education and public health are often the primary focuses of many of these organizations, and if these programs remain operational, perhaps Burkina Faso can persevere until the political instability subsides.

– Braden Hampton
Photo: Flickr

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How Countries are Helping Ukraine

Helping Ukraine
In February 2022, Russian President Vladimir Putin announced the beginning of a full-scale land, sea and air invasion of Ukraine. As of August 2022, the fighting has caused the internal migration of more than 6.6 million Ukrainians. Military losses are extreme on both sides, with an estimated 9,000 Ukrainians dead and 45,200 Russians either wounded or killed, NPR reported in August 2022.

A Restricted Response

Due to Russia’s economic, social and military power, it is extremely difficult for other nations to assist Ukraine. Slovakia, Lithuania, Poland, Finland, Hungary, Romania, Estonia, Germany, Czech Republic, Greece, Belgium, Netherlands and Latvia all heavily depend on Russian oil. These countries are virtually unable to assist Ukraine, as this factor has caused inflation and threatens economic collapse.

Larger, less dependent countries, such as the United States, Japan and the United Kingdom, are also restricted due to the veto power of the United Nations. Because of Russia’s veto power — determined by the outcome of World War II — the United Nations as a whole has no capability of placing any restrictions or punishments on Russia for the country’s actions. However, despite these challenges, countries worldwide are still attempting to use their power to assist Ukraine.

Aid That is Helping Ukraine

In the United States, Ukrainians have risen to the top of the immigration list. As of June 2022, the U.S. has accepted more than 20,000 Ukrainian refugees and has provided them with food, clothing, technology, housing and education upon their arrival. The U.S. also placed several sanctions on Russia and has invested $19.3 billion in security defense for Ukraine since January 2021. This includes $18.3 billion since “Russia’s launched its premeditated, unprovoked, and brutal war against Ukraine on February 24, [2022].” Along with the U.S., Belgium, Canada, Czech Republic, France, Germany, Greece, Portugal, Romania, Spain, Sweden, Netherlands and the United Kingdom have also sent military aid to Ukraine.

Countries located closer to Ukraine – Poland, Moldova, Romania, Slovakia and Hungary – are helping Ukraine by accepting and providing for millions of displaced Ukrainians. Over the past year, several nonprofit organizations have also joined in helping Ukraine, such as United24, Razom for Ukraine, UNICEF, Doctors Without Borders, Save the Children, International Medical Corps, Voices of the Children and more.

The current aid that various organizations are offering Ukraine varies from health care to psychological support. Voices of the Children, for example, is a charitable foundation in Ukraine, that aims to provide psychological and psychosocial support for children who experience war, while Save the Children helps deliver lifesaving aid to vulnerable children in Ukraine. UNICEF, similar to other major organizations, supports the sanitation and protection of the Ukrainian people by providing a variety of aid and an immense amount of assistance from volunteers.

Looking Ahead

As the Ukrainian War trudges on, these efforts are becoming vital to the country’s survival and its people. Through these efforts, the Ukrainian people may be able to focus more on themselves and their families, rather than the stress of survival.

– Sania Patel
Photo: Flickr

How EU candidate status can help Bosnia and Herzegovina

EU Candidate Status
On October 12, 2022, the European Commission recommended official European Union (EU) candidate status for Bosnia and Herzegovina. Considered a potential candidate since 2003, the country only formally applied for EU candidate status in 2016. The recommendation of the Commission does not mean that Bosnia and Herzegovina will be granted candidate status very soon. Nevertheless, it is sending a positive message to the country, signaling EU candidate status in the future if it implements more reforms.

The EU Candidate Status: A Tool for the Country’s Development

Obtaining EU candidate status to bolster development drives many countries to apply to the European Union. However, in order to obtain candidate status, countries must pass specific legal and political reforms.  For instance, the EU may ask countries to work on reducing corruption, poverty and social inequality.

Bosnia and Herzegovina’s Pathway

On December 2019, the Council of the European Union endorsed 14 key priorities for Bosnia and Herzegovina to obtain candidate status. These 14 priorities are a roadmap for the country in its path to implement strategic reforms to achieve candidate status. Political priorities include aligning its constitutional framework to European standards and improving its judiciary. Economic priorities include improvements in educational quality and energy infrastructure.

Furthermore, the EU has a special process for Western Balkans countries, called the “stabilization and association process.” This process has three aims:  political stability and a quick transition to a market economy, regional cooperation and eventual EU membership. The Western Balkans process provides Bosnia and Herzegovina with financial assistance, trade concessions and assistance for stabilization and reconstruction needed due to the war in the 1990s.

The Progress and Obstacles

The European Commission’s 2022 Report on Bosnia and Herzegovina outlined some progress on the 14 key priorities. The country made some progress in addressing environmental challenges and sustainable connectivity. It also made progress in its migration policies.

When it comes to the economic criteria, the country is slowly establishing a market economy. However, its economic performance is still below its potential. Its Economic Reform Programme does not include enough measures to tackle economic challenges on a national scale, such as the informal economy and unemployment, per the report.

The report also outlined little or no progress in the political sector. A key obstacle is that the country remains politically unstable. Indeed, the political entity representing the Bosnian Serbs, the Republika Srpska is trying to “unilaterally take over state competencies” and is threatening to secede from Bosnia and Herzegovina due to potential accession to the EU. The European Commission also noted that Bosnia and Herzegovina did not make a lot of progress when it comes to tackling corruption and organized crime.

The Path Forward

Bosnia and Herzegovina has been seeking to join the EU for almost two decades. To reach the EU candidate status that will foster its development, the country needs to build upon its improvements on the 14 key priorities. It also needs to step up efforts to overcome the obstacles blocking any progress. If Bosnia and Herzegovina uses the support it has gained through the special Western Balkan process, the next report on its progress should be more positive. Perhaps the European Commission’s recommendation is the encouragement that Bosnia and Herzegovina needs to improve its EU candidacy potential.

– Evan Da Costa Marques
Photo: Flickr

EU Action to Address Energy Poverty in Europe

Energy Poverty in Europe
On October 4, 2022, the European Economic and Social Committee (EESC) issued a report entitled “Tackling energy poverty and the EU’s resilience: challenges from an economic and social perspective.” Indeed, within the European Union, there is a need to tackle the issue of energy poverty as winter approaches. With energy inflation reaching 40% due to the ongoing Russia-Ukraine war, many EU households may not be able to heat their residences this winter due to increasing rates of energy poverty in Europe. The European Commission estimated in September 2022 that roughly 34 million individuals in the EU are enduring “energy poverty to varying degrees.”

EU Measures to Tackle Energy Poverty

The European Union has already adopted a few policies to fight energy poverty in Europe in the last few years. With the 2019 “clean energy for all Europeans package,” the EU is establishing key measures to counter energy poverty in Europe. The package aims to increase energy security by protecting vulnerable consumers from steep energy prices and a lack of energy resources. To achieve this, the EU aims to rely less on external energy supplies by diversifying its sources of energy supplies and increasing its investment in renewable energy sources within the EU.

When it comes to monitoring energy poverty, the EU receives reports from EU Member States on the number of people suffering from energy poverty. These reports are mandatory since the implementation of the “directive on common rules for the internal market for electricity” in 2019 and enable the EU to allocate more or less support according to the numbers.

The Energy Efficiency Directive (implemented in 2012 but amended in 2018) directs Member States to implement “a share of energy efficiency measures… as a priority in households affected by energy poverty or in social housing.” With such measures, those households would consume less energy and would pay lower energy bills.

The Regulation on the Governance of the Energy Union stresses the obligation of EU Member States to each establish their own “national indicative objective” to reduce the number of households suffering from energy poverty. Then, each country must update the EU regarding progress toward this goal. In addition, Member States have to provide information on the measures and policies already implemented and future measures to address energy poverty.

Other Actions

Other than the directives and policies, the EU has other tools to help Member States fight energy poverty. The Energy Poverty Advisory Hub (EPAH) is the main EU initiative addressing energy poverty through a “collaborative network of stakeholders,” the EU website says. The EPAH builds on the energy poverty reduction work conducted by the Energy Poverty Observatory. The EPAH distributes resources to stakeholders to guide them in taking action to reduce energy poverty. This includes online courses, reports, guidebooks and technical assistance. The EPAH will run from 2021 to 2024.

Energy inflation due to the Russia-Ukraine war has increased the number of households living in energy poverty across Europe. Considering this situation, it is essential for the EU to prioritize fighting energy poverty, with a special focus on disadvantaged households. The EU is committed to energy sustainability and is taking action to achieve this.

– Evan Da Costa Marques
Photo: Flickr

Agricultural Investments in Vietnam

Agriculture Investments in Vietnam
Agriculture, forestry and fishery have been at the root of the Vietnamese economy for thousands of years. Recently, a trend of borrowing from banks like LienVietPostBank, AgriBank and BIDV by struggling farmers has allowed them to escape the poverty caused by the scars of war and colonial oppression.

These loans enable farmers to purchase reliable equipment and materials to grow their crops and yield a wider profit margin, hire more workers and cycle more capital to create stable income and community. The World Bank reported a drop in poverty from 16.8% to just 5% from 2010 to 2020.

Now the force of this agriculture boom is proving to be a vital element in the propulsion of the economy after the COVID-19 pandemic. In 2021, a whopping 1,640 new agriculture businesses emerged. This is largely due to the agricultural investments in Vietnam.

Why the Buzz? 

As a country with a long history of food shortage due to war, Vietnam is especially wary of movements in the food supply. As the COVID-19 pandemic hurt business and now the threat of the Russian-Ukraine war shocks economies globally, agriculture is emerging as the key economic pillar of society. In 2020, the country ranked among the top five exporters of aquatic products, rice, coffee, tea, cashews and cassava.

When the pandemic started to affect other sectors such as service, construction and industry, many in the southern provinces returned to work in agriculture and that industry flourished. The pandemic stunted poverty reduction but did not set it back. Most of the growth has come from the establishment of small-scale farms that maintain themselves by becoming food secure and self-sufficient. Most of the new farms are less than 1 hectare and provide ample sustenance for the families who work them.

According to the International Fund for Agriculture Development, economic growth in small-scale agriculture is two to three times more effective at reducing poverty than in other sectors. Agro-focused banks keep close contact with their loan recipients, monitoring income and circumstances that might affect the crop, as well as consumer trends. This has created a community atmosphere where people are working alongside agricultural investors in Vietnam, effectively lifting many out of poverty.

The Effects of Agricultural Investments in Vietnam

Vietnam News reported that Vietnam’s agriculture industry comprises more than 14,000 businesses, 78 unions, 19,100 cooperatives, more than 30,000 production groups and 19,600 farms. The success of poverty reduction and business growth in agriculture is due to many factors such as increased governance capacity, capital investment, socio-economic planning policies and other public services. The recent investment and the government’s sustained efforts to keep the agriculture business in good standing have played great roles in this reduction. Moreover, the multi-industrial approach has provided basic health care and early education through new government policies. There has been a remarkable decline in those living on less than $1.25 per day from 63.7% in 1993 to 16.9% in 2008.

This massive shrinking of the poor is a great stride. While there is still a rocky road ahead for the growing country, the uptick in food security due to agricultural investments in Vietnam is a promising guidepost for increasing the quality of life in the country.

– Shane Chase
Photo: Flickr

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Rwanda’s Capital is On the Path to Green Urban Growth

Green Urban Growth
Kigali, the capital of Rwanda, is on the cutting edge of African development. In May 2022, the Rwandan government launched the second phase of the environmentally friendly, $175 million Rwandan Urban Development Project. The project consists of reinforcing nature-based infrastructure and protecting the city against extreme weather conditions. A hub of architects and entrepreneurs is working out of the newly built MASS Design Group’s largest office in Kigali. The recent increase in investment in the once war-stricken city aims to set Rwanda on the path to green urban growth.

A Critical Eye

President Paul Kagame received many criticisms for taking the position of an authoritarian strongman. While Rwanda appears to be a safe space for foreigners, Lewis Mudge, the Central Africa Director at Human Rights Watch recently told CNN,  “Rwanda is a safe country for Rwandans if you keep your head down and don’t ask any questions or challenge anything. The moment you step up and start to question something or have an independent opinion and express it, Rwanda becomes a very difficult country to live in.” It is impossible to ignore the claims of citizens and spokespeople in the region. For Western and Asian allies, however, Kagame remains a “liberator” with intentions of expanding economic prosperity in the region.

Sustainability and Reframing

The Rwanda Urban Development Project focuses on developing the natural infrastructure of Kigali and surrounding cities. A green micro-mobility company called Guraride, which began a bike share scheme in Kigali in 2021 is just one of many firms setting up in the city. Guararide CEO, Tony Adesina, explained, “We’re looking at a situation where Kigali becomes the Silicon Valley of Africa.” President Kagame has made aspirational claims of making Rwanda a middle-income country by 2035.

In the decades since the atrocious 1994 genocide, the government has brought the country out of the ruins by taking several measures. For one, Rwanda now has close financial ties to China; in 2008, the country outlawed the use of non-biodegradable plastics a notable step towards its desire to be a green country. Moreover, it has closed gender gaps with 61% of its parliamentary seats, which women hold. The World Bank continues to report “strong economic growth” in the region, and a poverty decline from 77% in 2001 to 55% by 2017. With the decline in poverty and awareness of the need for renewable energy, Rwanda is a beacon of hope for the naysays of energy reform and a model country on the path to green urban growth.

Eco-Development

A coalition of architects, engineers, city planners, researchers, designers, construction and film industry has come to the MASS Design Group’s central hub. Entrepreneurs like Tony Adesina are attracted to the area because of the government’s inclination towards allowing tech-based and eco-friendly development. As increasingly severe weather conditions erupt around the world, Rwanda is taking the initiative to develop green solutions to the unique problems weather causes. Launched in 2017, The Green City Project in Kigali is an example of this initiative. It aims to be a green community in the Kinyinya Hill area of Kigali; allowing developers to use innovative climate-responsive building techniques and collect rainwater, as well as increase vegetation, tree cover and renewable energy sources. This facility is a harbinger for more green projects to come around the world, as the move to green urban growth becomes evermore important.

The region of Kigali represents hope for war-stricken countries. Often through struggle and war, many creative solutions emerge out of necessity. Western counterparts regularly overlook developing communities in Africa and view them as “reporters” of what is happening, rather than true artists and creators themselves. Though others should not ignore the iron fist of the Rwandan government, an encouraging move toward sustainability that the nation has taken is the bottom-line approach necessary to tackle environmental and economic issues.

– Shane Chase
Photo: Flickr