Archive for category: Global Poverty

Key articles and information on global poverty.

Elderly Poverty in Ukraine Reaches Peak

Elderly Poverty in UkraineAmid the destruction that Russian troops have wreaked on Ukraine lies a forgotten demographic that has been forced to bear the brunt of Russian aggression: the elderly. As Russia continues to target healthcare facilities, apartment complexes and power plants, access to food, shelter and electricity is now elusive. Poverty among the elderly is more pernicious than it has ever been. Today, senior citizens represent one-third of all Ukrainians in need of dire assistance: 91% of elderly Ukrainians require aid to get food and are suffering from extreme cold while 75% need basic hygiene items and 34% need urgent medication for chronic illness.

A Legacy of Poverty

Elderly poverty in Ukraine is not a novel issue. Although Ukrainian citizens aged 65 and over represent 17% of the nation’s population, their plight has been largely overlooked. The collapse of the Soviet Union left in its wake a pension system that hinged on contributions from the steadily declining working class, which condemns 80% of pensioners to live below the poverty line as Ukraine’s population dropped every year.

The inaccessibility of essential services, pharmacies, hospitals and grocery stores as a direct result of the war has only exacerbated the struggle of the elders who have already been denied access to these basic necessities. Disabilities and chronic illness obstruct them from evacuating to safety, and for many the fear of burdening their families has compelled them to remain in a war zone with little to no companionship or support network as their loved ones flee the country.

Organizations Aiding Ukrainian Elders

Global initiatives are rising to the challenge. HelpAge International is a network of organizations that advocate for senior citizens around the world. The network has continued to support elderly Ukrainians in eastern Ukraine since the dawn of the war in Donbas in 2014, supplying almost 5,000 older community members with peer-to-peer support, assistive devices, hygiene kids and home-based care.

In partnership with People in Need, CARE is a global organization with a commitment to “fight global poverty and world hunger by working alongside women and girls”. The partnership resulted in the founding of the Ukraine Crisis Fund which aims to provide at least four million vulnerable civilians affected by the Russo-Ukrainian War with emergency assistance. This includes food, water and hygiene supplies, as well as cash support and psychosocial aid. The U.N. Refugee Agency (UNHCR) is helping elders recover shelter by helping to mend homes shelled by Russian airstrikes. Finally, the Armed Forces of Ukraine are working tirelessly to protect elderly citizens and all of Ukraine’s people. Their official fundraising account proves an effective way to improve Ukraine’s defense capability even from overseas.

Although war continues to rage, not all hope is lost. According to information services company Candid, which tracks funding data in real time, more than $1.3 billion has been donated to Ukraine through non-profits. Though it will take years for life to return to normal and even more years for elderly poverty in Ukraine to be remedied, the aid of the international community demonstrates that such change is indeed possible.

A Look Ahead

While recent airstrikes in Dnipro and Mykolaiv suggest that the humanitarian crisis in Ukraine is far from over, new defense systems supplied by Canada, the United States and the United Kingdom have already boosted Ukraine’s ability to disrupt Russian missiles. Thanks to the new developments, the elderly can be better taken care of as their homeland becomes better fortified. Though poverty among the elderly continues to plague Ukraine, recent improvements to Ukraine’s national security as well as the work of NGOs and nonprofits make a future where this issue is no longer a death sentence.

– Stefania Bielkina
Photo: Flickr

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3 Organizations Combating Poverty in Sub-Saharan Africa

Combating poverty in Sub-Saharan AfricaThe region of sub-Saharan Africa encompasses an aggregate of nations with diverse geographies, histories and cultures. Furthermore, the countries composing sub-Saharan Africa have diverse needs. From unaffordable health care to regional conflict, the issues besetting sub-Saharan Africa have left many of its inhabitants in poverty. Fortunately, philanthropic organizations have stepped up to the plate to remedy the many challenges affecting sub-Saharan Africa. Three organizations, in particular, have shown that there is not a universal methodology for combating poverty in sub-Saharan Africa.

Poverty in Sub-Saharan Africa

According to the World Bank, in 2017, two-thirds of the “global extreme poor population” lived in sub-Saharan Africa. While poverty is actually slowly declining in the region, a rapid rise in population growth is stalling a reduction in the number of impoverished people in sub-Saharan Africa.

However, there are differences among sub-Saharan Africa’s constituent countries. According to the World Bank’s 2018 data, in the Democratic Republic of Congo, 73% of people lived on less than $1.90 per day, the international poverty line. Additionally, the World Bank predicted that 27% of Ethiopians lived below the international poverty line in 2019. Finally, a 2020 U.N. report indicates that 18.9% of South Africans live on less than $1.90 a day.

Agrarian Communities “Grow Together” with Nanmo

Nanmo is an Arabic word meaning “growing together.” This word is the spirit of the partnership between the Bill & Melinda Gates Foundation and the Qatar Fund for Development’s $200 million investment in sub-Saharan Africa.

Nanmo’s goal is to provide adaptive ways for rural farmers, especially women, to respond to climate-related difficulties. Mark Suzman, CEO of the Gates Foundation, told the Gulf Times that a “Majority of the poorest living in sub-Saharan Africa are the rural folk. They depend on agriculture…in parts of the world that are seeing much greater temperature fluctuation with frequent floods or frequent droughts.” The collaborative organization gives agrarian communities innovative technologies that can bolster their pathway to food security.

Suzman said that Nanmo was not confined to one country. However, a pilot program in Nigeria and Ethiopia showed an auspicious sign for the future of Nanmo in combating poverty in sub-Saharan Africa.

Efficiency for Access: Ameliorating Poverty through Clean Energy Solutions

In sub-Saharan Africa, more than 600 million people lack a connection to their country’s energy grid. Efficiency for Access, a coalition coordinated by CLASP and Energy Saving Trust, is working to bring life-changing, clean-energy appliances to vulnerable communities.

Bridging the gap between those on and off the energy grid could lead to improved agricultural productivity and thus poverty alleviation. Mike Maina from CLASP told FairPlanet that “In sub-Saharan Africa, 60% to 70% of the population is involved in agricultural livelihoods with the least mechanization in the world. This is a region where using renewable energy can have a big impact, especially on low-income populations.”

In addition to agricultural appliances like solar water pumps, Efficiency for Access also supplies products such as solar-powered refrigerators, electric pressure cookers and fans. As CLASP conveyed to FairPlanet, its theory is to provide people with a livelihood and not just a light bulb.

Zoetis Provides Veterinary Care to Farmers’ Livestock

Despite sub-Saharan Africa’s sizable livestock population, it has the “lowest productivity per animal” of any region. According to Poultry World, Zoetis, an animal health company, is improving the health of livestock through its A.L.P.H.A. initiative. Inaugurated in 2017, this program provides accessible veterinary services to farmers across the region.

Throughout its five years in operation, Zoetis has worked with 128 million animals and educated 26,000 individuals, according to Poultry World. By supplying inoculations and medical training to communities in sub-Saharan Africa, the African Livestock Health and Productivity Advancement program has been a boon for food security in sub-Saharan Africa.

Zoetis’s activity in the region has enabled African communities to produce safer food while reducing the economic burden of raising livestock. Thus, the A.L.P.H.A. initiative has been successfully combating poverty in sub-Saharan Africa.

A Glimpse into the Region’s Future

These three organizations are just some of the numerous charitable entities working on combating poverty in sub-Saharan Africa. While these organizations exemplify a propitious future for the region, it still requires more work.

Governments and NGOs alike need to work in harmony to ensure that the region’s sundry needs are met. However, these three organizations demonstrate that there is no “one size fits all” approach to combating poverty in sub-Saharan Africa. Despite the need for more concerted and adaptable action on behalf of the world’s poor, these three organizations provide a bright glimpse into the future for sub-Saharan Africa.

– Alexander Portner
Photo: Flickr

Upholding Education in Ukraine

education-in-ukraineOn February 24, 2022, Vladimir Putin ordered his troops to invade Ukraine, resulting in the death of thousands of Ukrainian citizens. This decision has led to many fleeing the country, the separation of families, and the most significant refugee crisis in Europe since World War II. Putin’s crimes have brought forward a dreadful reality for those living in Ukraine, as they have witnessed the destruction of their homes, towns and cities. The Russo-Ukrainian War has affected countless facets of daily life including education in Ukraine.

Physical Damages

Education in Ukraine evidently stalled in the wake of Russia’s invasion. Commuting to schools and universities is certainly out of the question for the time being and remote learning began in mid-March 2020. In many regions, Russian attacks have destroyed the physical infrastructure of school buildings, leaving many children without a place to learn. A March 22 Voice of America YouTube video reported that “About 400 buildings have been damaged, about 60 have been fully destroyed.”

If Ukraine is unable to repair school buildings, many children will encounter educational burdens. COVID-19 forced students all over the world into the state of online learning, which disengaged many from their material. Combining the lack of a proper learning environment with the traumatizing events that Ukraine has seen in 2022, could produce a generation of disenfranchised individuals.

Ukrainian Efforts

The educational leaders of Ukraine had little time to prepare and adjust to these unprecedented circumstances. Given how swiftly the Russian army moved, these attacks caught much of the country off guard. One audible that rose in the wake of these devastating attacks came when Google teamed up with Serhily Shkaret, the Ukrainian Minister of Education. “Together with our colleagues from Google, we created an all-Ukraine online curriculum that is based on an average school curriculum. Even if there are no teachers, even if there is no possibility of being in a classroom in a group, children still have the ability to be a part of the education process.”

Google Meet and Zoom assisted Ukraine in its ever-changing educational approach. Even a stable internet connection became possible. This partly became possible “thanks in large part to technicians and telecom engineers who’ve risked their lives to keep the country online.”

Creating a Distraction

Children often get sidetracked from their work, especially in the classroom. For those that have a poor family dynamic at home, learning something new can serve as a distraction and focus their energy on something positive. Additionally, for the children growing up in Ukraine right now, there could not be more of a need for positive distractions. Ksenia Kalyniuk, the Head of Educational Platform in Ukraine illustrates her initiative’s motives: “There are a lot of students and I understand that our primary goal is to distract children and give them new information so they can use their time productively.” If not for these efforts, Ukrainian children would inherit a greater exposure to the ongoing troubles of their country.

Potential Poverty

Education in Ukraine should most definitely be at the forefront of United Nation and EU agendas. As with any war or violent conflict, the economy usually suffers in the weeks, months and years that follow. These economically demoralizing after-effects prove the value of education and display the urgency that families may sense as their children go through school. DNAIndiaNews provides a concerning statistic on the state of Ukraine that came from UNDP, stating that nine out of 10 Ukrainians may face poverty and economic vulnerability in the coming years. Concerns like these are especially devastating when accounting for the 20-year span of economic gain in Ukraine’s history.

It is evident that one country cannot tackle this crisis alone. Google’s efforts have been empowering because they have enabled Ukrainian educational leaders to continue their instruction amid a war with far-reaching humanitarian consequences. The impact of foreign aid on education in Ukraine could be significant. Ukraine’s children need to learn, grow and develop just as children do across the globe. Without an educational background, they may face an even more daunting challenge than the Putin-enforced reality has brought forth.

– Jason Montecalvo
Photo: Flickr

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Poverty Reduction in Chile

Poverty Reduction in ChileWith the highest GDP per capita in South America in 2020, Chile’s growth in the last few decades has been viewed as a model for Latin American development. Adopting a laissez-faire approach, the government shied away from significant spending on welfare, with the few existing programs geared toward middle and upper-class Chileans. However, recent administrations have made combating poverty a central theme of their campaigns, with presidents like Sebastián Piñera and Gabriel Boric both committing to the elimination of extreme poverty. Poverty reduction in Chile and the challenges the country faces serve as an inspiration and a warning for other developing nations.

Chile’s Approach to Poverty Reduction

Chile’s approach to poverty reduction is based upon a series of programs that focus on short-term income support and long-term economic security. During the 1990s, the Aylwin administration invested in hospitals and schools while also increasing the minimum wage. These reforms halved the number of Chileans living in poverty while contributing to the country’s steady growth throughout the decade. However, the highly centralized and inefficient public services system, coupled with strikes from teachers and health workers, meant Chile required a new solution for the new millennium.

Chile Solidario

With a new presidential administration and the need for change amid stagnating results, the government introduced ‘Chile Solidario’ as the country’s newest front in reducing poverty. Conceived in 2002, the program aimed to help low-income Chileans on an individual level while simplifying the arcane bureaucracy behind the country’s welfare system. Chile Solidario provided those in extreme poverty with cash stimuli and “psycho-social support” from social workers, assisting with immediate needs and future plans. In addition, the program synthesized many smaller financial assistance programs into a cohesive system, aiming to make aid more accessible to low-income citizens.

The program showed some successes with poverty reduction in Chile, albeit with limitations. The clearest evidence supporting Chile Solidario is the rapid decline of the percentage of people living in poverty in the years after the program’s introduction in 2002, from 29% to 8.6% by 2017.

Furthermore, attendance in schools and hospitals rose significantly, suggesting health and educational benefits in the future. A significant drawback of Chile Solidario is that while many in the program leave poverty, the rates of exit from the program are not as high. A study during Chile Solidario’s early years also found that household income per capita among recipients did not significantly increase.

The administration of Piñera further modified Chile Solidario. In 2012, President Piñera replaced Chile Solidario with the Ingreso Ético Familiar (Ethical Family Income). As part of his broader promise to end extreme poverty in Chile, IEF focuses primarily on conditional cash transfers to eligible Chileans, requiring school attendance and regular health checkups.

Looking Ahead

Unfortunately, the emergence of the COVID-19 pandemic and Chile’s strict lockdown has challenged the nearly continual progress of poverty reduction in Chile, with the poverty rate increasing from the 2017 low of 8.6% to 10.8% in 2020. Chile’s new president Boric promised $3.7 billion in aid in April 2022, undertaking to create new jobs while raising the minimum wage.

The ongoing debate over Chile’s draft constitution offers hope in the fight against poverty, promising to end job insecurity and institute a universal basic income. However, it also risks undermining the gradual, albeit successful progress of the last four decades in its radical rejection of the blueprint of the 1980 constitution.

Poverty reduction in Chile stands at a crossroads, able to embrace more direct government involvement in reducing the poverty rate or continue to let economic growth naturally spread to its poorest citizens. President Boric’s government seems to firmly favor the former, but in September, it is up to Chileans to decide whether they agree with his vision for the country.

– Samuel Bowles
Photo: Pixabay

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Human Trafficking in Malawi’s Dzaleka Refugee Camp

Human Trafficking in Malawi's Dzaleka Refugee Camp“The [human trafficking] situation was much worse than we first envisaged,” says Maxwell Matewere from the United Nations Office of Drugs and Crime (UNODC) in Malawi. “I even witnessed a kind of Sunday market, where people come to buy children who were then exploited in situations of forced labor and prostitution,” he says to the U.N. The place in question is Malawi’s Dzaleka Refugee Camp. Created in 1994, the U.N. Refugee Agency (UNHCR)  built the camp to accommodate 10,000 refugees escaping war and violence from neighboring countries. It now houses more than 50,000 refugees with even more refugees forced to return to the camp because of the government’s decree. The UNODC and Malawian Police Service have uncovered instances of human trafficking in Malawi’s Dzaleka Refugee Camp.

Human Trafficking in the Refugee Camp

Human trafficking in Malawi’s Dzaleka Refugee Camp takes many forms. Traffickers force men into hard labor while women and girls face sexual exploitation inside the camp or traffickers move them to the city or other countries in southern Africa. Traffickers even recruit children for farm labor and domestic work. Oftentimes, traffickers require refugees to pay off a debt accumulated from “being smuggled into Malawi.” Traffickers then force the victims into labor or prostitution to pay off the debt. The UNODC suspects that the camp may even be a transitory point for larger international human trafficking networks.

Why Human Trafficking Persists

Since the discovery of human trafficking in Dzaleka, the UNODC has taken measures to dismantle the organizations, identify and rescue victims as well as prosecute the perpetrators. However, several factors make dismantling human trafficking networks exceptionally difficult.

  • Victims are Afraid of Testifying. According to the Malawian Police Service, prosecution is difficult because many victims are afraid to testify in court. According to the U.N., the primary reason is that victims fear that traffickers may target them or their families. In some cases, victims related to the trafficker will object to testifying out of a remaining “sense of love or loyalty.” Furthermore, victims are sometimes reluctant to cooperate because they do not trust the officials.
  • Distrust of Law Enforcement. Many victims have difficulty trusting law enforcement. Not only does this make victims reluctant to testify but this also makes it more difficult to identify and rescue victims. According to Deutsche Welle, the basis of distrust comes from a history of corruption among Malawian officials. As Caleb Ng’ombo from People Serving Girls at Risk (PSGR) said, “We still have high levels of corruption, and so most of the trafficking cases are thriving… The people entrusted to do their job cannot do it because someone is paying them under the table.” With an underlying sense of distrust, victims from Malawi’s refugee camps may doubt the intentions of undercover police officers attempting a rescue, complicating the process.
  • Untrained Staff. Upon the discovery of human trafficking in Malawi’s refugee camp, the UNODC held an initial training at Dzaleka to train the staff on identifying and preventing human trafficking. According to Matewere, “There’s very little knowledge of human trafficking among the camp staff.” In fact, after initial training, some members experienced feelings of guilt when they realized the prevalence of trafficking within the camp. Now, the camp has implemented the Protocol on Trafficking in Persons in order to effectively prevent and respond to incidences of human trafficking.

Anti-Trafficking Measures

Despite the difficulty of dismantling human trafficking in Malawi’s Dzaleka Refugee Camp, the UNODC and UNHCR are determined in their goals. Not only have they implemented new training and anti-trafficking procedures, but they have also coached 28 camp officials who will train their colleagues in turn. Furthermore, with U.N. intervention, victims now reside in safe houses instead of being placed in jail alongside perpetrators. With these steps in place, the UNODC has rescued more than 90 victims from the Dzaleka Refugee Camp as of June 2022.

Numerous NGOs are also working on the ground in Malawi. People Serving Girls at Risk (PSGR), for example, cares for women and girls who have faced trafficking or exploitation and handles more than 200 cases a year.

An undercover policeman trained by the UNODC identified and rescued a 16-year-old Congolese girl from forced prostitution. Trafficked at just 10 years old, she came to the camp in 2009 after leaving the DRC due to conflict and violence. At first, she did not trust the officer, but, eventually, he gained her trust. “That evening, I had been beaten by one of my clients for refusing to have sex due to a cut that was bleeding. I was in pain and it was visible. The officer was friendly and he took me to a safe house,” she said to the U.N. Now, she is taking computer literacy lessons and hopes to reunite with her family.

Looking Ahead

Although the path to eradicating human trafficking in Malawi’s Dzaleka Refugee Camp is complex, progress is visible. Hopefully, with the combined efforts of the U.N. and the government, Malawi can eradicate human trafficking in the refugee camp.

– Emilie Zhang
Photo: Flickr

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Fighting Plastic Pollution in the Maldives

Plastic Pollution in the MaldivesThe island nation of the Maldives is famous for crystalline waters and vibrant coral reefs. However, rampant plastic pollution threatens these core features of the Maldives. One women’s group, however, is working to alter that trajectory by reducing plastic pollution in the Maldives.

An Island Nation

The Maldives, a nation comprising 185 islands, is intimately connected with the ocean that surrounds it. Beaches and oceans form the backbone of the Maldives’ tourism sector. With tourism being the main driver of economic growth and business profits in the Maldives, the well-being of the Maldivian tourism industry is directly linked to the well-being of the Maldivian economy.

In addition to being vital to the popularity of Maldivian tourism, the ocean fuels the fishing industry in the Maldives. Of poor households in the Maldives, 26% make their livings by fishing and nationally, 11% of Maldivians find their employment at fisheries.

Plastic Pollution in the Maldives

Growing plastic pollution in the Maldives, however, threatens both the tourism and fishing industries. The World Bank estimates that the Maldives produces 365,000 tons of solid waste a year, with the bulk of that waste that resort islands generate. As a result of plastic pollution, plastic has been washing up on beaches in the Maldives and destroying coral reefs. These beaches and coral reefs are fundamental to both the tourism and fishing industries in the Maldives. As plastic pollution threatens to damage the Maldives’ beaches and reefs, it threatens to cripple two of the industries most vital to the Maldivian economy.

Plastic waste also endangers the health of those living in or visiting the Maldives. The Maldives lacks sufficient resources to address with the volume of waste there, with people burning much of the plastic waste or dumping it in the sea. When plastic is burning, it releases toxic and carcinogenic gasses, posing a health threat to Maldivians who breathe the polluted air.

The Maldives Authentic Crafts Cooperative Society

Maldivians have been all but complacent when it comes to the problem of plastic pollution. One group tackling the issue is the Maldives Authentic Crafts Cooperative Society (MACCS). MACCS started its journey in 2011 with the original intention of preserving traditional artistic practices. After witnessing the declining practice of traditional artforms as imported counterfeit versions gained popularity among tourists, a group of 10 women created MACCS with the goal of reviving traditional art forms.

One of its first projects was to revitalize marshlands where reed grass grows, grass that is used for traditional mat weaving. Seeing the close connection between traditional Maldivian artforms and the island nation’s environment, MACCS decided to broaden its focus to encompass protecting the Maldives’ natural assets, as well as its cultural artforms.

In 2021, MACCS worked in partnership with the World Bank and other Maldivian organizations to educate households about how to improve waste sorting and reduce waste production. As part of the project, MACCS worked with residents on 20 islands to improve their waste management approaches and divert plastic pollution from the ocean.

To address the root of the Maldives’ plastic pollution, MACCS has been working to reduce the use of plastic grocery bags. With support from the UNDP, MACCS completed a pilot project in June 2022. For the pilot project, participants could scan a chip on their reusable bag each time they used the bag. When participants scanned the chip, they would earn points that they could save up to receive rewards to incentivize the use of reusable bags. The pilot project started with 500 bags, but MACCS is hopeful to expand in the future and further its efforts to reduce plastic pollution in the Maldives.

– Anna Inghram
Photo: Flickr

Fragility and the Rule of Law in Bolivia

Rule of Law in Bolivia
Protests in Santa Cruz de la Sierra, Bolivia, threaten to hamper an already struggling economy. A city-wide shutdown occurred on August 8, 2022, over the government’s decision to postpone the 2022 decennial census until 2024. On one hand, Santa Cruz’s legislators believe that delaying the census is an attempt to deny the municipality more political representation as its population has ballooned in the previous three decades. Santa Cruz’s leadership in the battle for the census reinforces the city’s trend of opposition toward the ruling government (Movimiento al Socialismo), but also its power as the economic center of Bolivia.

By strongly opposing itself to the rule of Movimiento al Socialismo, Santa Cruz’s situation shows the fragility of the rule of law in Bolivia. The United Nations highlights that rule of law plays an integral role in the development of countries and the reduction of poverty as poverty often arises from “disempowerment, exclusion and discrimination.” The rule of law upholds the voices of the people, safeguards democracy and ensures the protection of human rights.

A History of Protests

Santa Cruz’s governor Luis Camacho announced that the capital of the municipality could freeze for 48 hours starting August 8 until President Luis Arce agreed to discuss an earlier census date. As the largest city in Bolivia and its economic center, estimates indicate that each day of the shutdown will equate to an economic loss of $33 million, leading to accusations of crippling the economy for political gain. Alongside the economic problems caused by the protest, there have been reports of violence from those in favor and against the shutdown, with mayor Jhonny Fernández’s home coming under attack.

This is not a temporary issue either. Santa Cruz has undergone numerous shutdowns in previous years, dating all the way back to the nationwide shutdown in 2019 over ex-President Evo Morales’ alleged fraudulent election victory. As recently as July 2022, protestors spoke out against Movimiento al Socialismo’s imprisonment of many opposition members. Among the imprisoned is former President Jeanine Añez whose interim presidency was upheld by the Bolivian Constitutional Court prior to her condemnation.

Hope for Resolution

Although these incidents point to the fragility of the rule of law in Bolivia, there is strong hope for a resolution to the conflict. President Arce agreed to revisit the 2023 census’ date with delegates from Santa Cruz, an important step toward reconciliation between Movimiento al Socialismo and Santa Cruz’s opposition government. Another promising feature of the shutdown is that despite sporadic violence, both the central government and Santa Cruz’s mayor have called for a peaceful resolution with dialogue from all sides.

Additionally, foreign nonprofits, governments and organizations form an active part of the efforts to strengthen Bolivia’s fragile political situation. In 2019, the Organization of American States and the European Union reviewed Bolivia’s election results, reporting possible instances of electoral fraud. In 2020, with oversight once again, Bolivia held an election with a fair democratic process in place.

To safeguard democracy and the rule of law, the International Republican Institute works to strengthen “democracy and freedom” and “guide politicians to be responsive to citizens” while “[motivating] people to engage in the political process.” In Bolivia specifically, the IRI aims to “support free and fair elections, democratic institutions and local government, civil society capacity building, and efforts to promote peacebuilding and reconciliation.”

Looking Ahead

In the Declaration of the High-level Meeting on the Rule of Law, states stressed that “the rule of law at the national and international levels is essential for sustained and inclusive economic growth, sustainable development, the eradication of poverty and hunger and the full realization of all human rights and fundamental freedoms, including the right to development, all of which in turn reinforce the rule of law.”

Ultimately, fragility remains a key issue for the rule of law in Bolivia, but both local and federal governments are showing a desire to prevent violence and enforce institutional authority. The rejections of violence by Governor Camacho and President Arce indicate that although there are differences between the states and the Bolivian government, there is also a willingness to bring issues like the census to an amicable resolution to strengthen the rule of law in Bolivia.

– Samuel Bowles
Photo: Flickr

Resource Curse Exacerbates Poverty in Nigeria

paradox-of-wealth-how-the-resource-curse-exacerbates-poverty-in-nigeriaNigeria is the sixth largest exporter of oil and possesses the largest oil reserves in Africa. Given such a wealth of natural resources, on the surface, it can be difficult to comprehend how Nigeria’s resource curse exacerbates poverty an also has the largest population of extreme poor in Africa, with 70 million people living on less than $1.90 a day. Nigeria is a prime example of a natural resource-dependent economy having what is known as the “resource curse,” where orienting economies around plentiful natural resources can lead to more poverty, unemployment and corruption over time. The effects of the resource curse are apparent in Nigeria. However, the country can implement policies to end the resource curse and broaden opportunities to reduce poverty and encourage socioeconomic development.

The Resource Curse is a Gravely Inefficient System

A major impact is the lack of economic returns relative to the financial resources invested into the oil sector. In 2020, oil accounted for 90% of Nigeria’s export earnings and consisted of 1/3 of the country’s annual revenue, however, it only contributed to 9% of GDP growth.

Such economic inefficiency, along with the appeal of fast money, underscores how Nigeria’s resource curse leads the government to neglect other economic sectors such as infrastructure, industry, science/technology, services and agriculture. Such neglect of these sectors depresses opportunity and exacerbates poverty, seen in Nigeria’s unemployment rate of 9.8% and per capita income at $2,085 as of 2021.

Nigeria also ranks 150 out of 157 countries in the World Bank’s 2020 Human Capital index, indicating a lack of adequate living standards from poor opportunities in education and healthcare to ensure a productive labor force. These indicators of poverty relate to the neglect of other industries that come from the resource curse and the lack of economic diversification to provide adequate socioeconomic opportunities for Nigerians to escape poverty.

Nigeria’s resource curse has also made it acutely vulnerable to global price fluctuations in the oil market, as seen during the COVID-19 pandemic. Oil prices for Nigerian exports collapsed by 60% between February and May 2020 alone, threatening half of the government’s revenue source during this period.

The vulnerability to global price fluctuations underscores how reliance on the oil sector alone can make economic growth from it particularly fragile. Also, how relatively small returns in economic growth from huge investments seen in export percentages can create an inefficient economic system.

The Atmosphere of Corruption Encouraged By Resource Curse

Nigeria’s resource curse also encourages rampant government corruption where oil revenues and ownership of reserves are used as a vehicle for patronage to win elections. This denies Nigerians access to oil revenues to develop the economy and create better socioeconomic opportunities, because revenue is not invested back into national development.

Nigeria’s tax revenue to GDP ratio is significantly less at 6% than the average African country at 17%. This lack of financial return from oil revenues is largely due to corruption. Oil revenues become used to entrench patronage and cronyism rather than investing in the development of other economic sectors to reduce poverty for Nigerians.

Other Important Economic Sectors Become Neglected Stifling Development

Another major impact is the lack of economic diversification essential for creating opportunity and reducing poverty. Nigeria ranks 45 out of 76 in the Observatory of Economic Complexity ranking in service exports, a trade data research firm measuring indicators of trade development for services such as financial, business and computer and technology services.

This ranking indicates that in measures of more advanced industries, Nigeria has fallen behind due to dependence on the oil industry. The agricultural industry is another field that Nigeria’s resource curse neglected.

Agriculture

Although 36% of Nigeria’s workforce is employed in agriculture, it accounted for less than 2% of exports in 2019. The neglect of the agricultural sector has had a major impact on poverty in Nigeria. The country, despite such high levels of employment in the industry, imported $689.7 billion more in food than it exported in 2019. This attributes to lack of modern agricultural techniques, poor infrastructure and recent violence from terror groups such as Boko Haram disrupting agricultural production.

The neglect of the agricultural industry and subsequent dependence on imports, place Nigerians at heightened risk of slipping deeper into poverty. This is because skyrocketing demand for food imports in Nigeria has contributed to a rise in food inflation, standing at 18.4% as of May 2022 as domestic agriculture has struggled to satisfy demand.

Infrastructure

The neglect of infrastructure is another example of exacerbating poverty. Poor roads obstructing the transportation of crops from farm to market and dependence on imports have led to 21.4% of Nigerians experiencing food insecurity, while 45% of Nigerians lack access to electricity.

This lack of access to critical infrastructure is due to the vast majority of government resources going to the oil industry, placing Nigeria at a large infrastructure deficit as it accounts for 30% of GDP, well short of the 70% average goal set by the World Bank. This results in serious impediments to commercial activity within the country, stifling economic growth and depressing socioeconomic opportunities for Nigerians.

Such statistics show how Nigeria’s dependency on oil exports have led to overall less economic development in other important economic sectors, contributing to the extent of its poverty.

Nigeria’s resource curse as in other natural resource-dependent economies stems from the lack of economic diversification it causes. Focusing on developing the agricultural and infrastructure sectors could reduce dependence on oil and create more socioeconomic opportunities for Nigerians that could reduce poverty.

Investments in human capital could also go a long way to improving Nigeria’s Human Capital Index ranking and cultivating a workforce equipped with the tools to achieve higher living standards and more socioeconomic prosperity for the benefit of Nigerians and the country as a whole.

– John Zak
Photo: Unsplash
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Rising Income in Japan During Hyperinflation

Rising Income in JapanWith inflation leading to soaring prices, effective government intervention is crucial to solving people’s hardships. Recent reports suggest that Japan may be able to teach the world a lesson in this regard. Japan’s economy has maintained a mild deflationary state for decades and overall prices have been relatively stable. However, this year, the island nation has rarely ushered in 2% inflation against the backdrop of rising prices around the world. While Japan’s price hikes are nothing compared to many other countries, unchanged wages are making life more stressful for consumers caught off guard by inflation. Fortunately, the Japanese government has introduced some effective measures against the wage issue, which have improved the lives of ordinary Japanese people. This article will briefly explore the topic of rising income in Japan recently.

Increasing Minimum Wages

Japan’s Central Minimum Wage Council recently issued a new policy, which is to raise the minimum wage standard across Japan by ¥30 per hour. This is the largest minimum wage increase ever issued by the Japanese government. Rising domestic prices stimulated this policy in Japan due to the sluggish yen and the Russian-Ukrainian war. The policy ensures the rights and purchasing power of ordinary Japanese workers.

Senior officials of the Japanese government have also attached great importance to basic wages and livelihood issues. In an interview with reporters, Deputy chief cabinet secretary Seiji Kihara said that raising the minimum wage is an investment in the people and he hopes that the rising trend of basic wages can keep up with the development of new capitalism.

Rising Total Income in Japan

In addition to setting requirements for basic wages, the Japanese government not long ago encouraged Japan’s major companies to raise workers’ wages on the premise of rising prices. In fact, the government wants companies to raise wages to the same extent as prices rise. This major move came with the support of Japanese Prime Minister Fumio Kishida’s economic policy. In fact, it was he who promised to bring New Capitalism to voters, which requires “a virtuous cycle of growth and redistribution driven by investment into people,” according to Japan Times.

Many Japanese companies have followed suit, including major car companies such as Toyota and Hitachi. They heeded the government’s call, even though their business was hurt by soaring oil and wheat prices as a result of the Russia-Ukraine war. In February 2022, Labor unions of major electronics and car manufacturing industries planned to raise workers’ wages by around ¥3,000.

The rising income in Japan during hyperinflation is the result of the government’s efforts to ensure a virtuous circle of the economy, as well as maintain the normal living standards and purchasing power of the people. Although the world economy in 2022 could cause difficulties for many countries, the Japanese government’s practical actions tell us that every government may have a role in caring for the needs of the people.

– Ella Li
Photo: Flickr

TPO Cambodia: Leading Mental Health Awareness in Cambodia

tpo-cambodia-leading-mental-health-awareness-in-cambodiaOrganizations like TPO Cambodia are combatting mental health issues in Cambodia in order to create a stronger and well-off nation by raising awareness of the situation and developing community-building solutions.

Poverty in Cambodia

There are several substantial poverty issues in Cambodia needing addressing. According to Asian Development Bank (ADB), 17.8% of Cambodians are living below the poverty line. Additionally, 9.2% of the nation is living on $1.90 or less a day.

This could relate to mental health issues since Cambodia is a country with one of the highest risks of mental health-related issues. It is estimated that 40% of Cambodians suffer from mental health issues. Post Traumatic Stress Disorder (PTSD) and suicide rates are also higher than the worldwide average.

Poverty and Mental Health

Studies have shown that mental health issues among individuals lead to higher rates of impoverishment from struggling to remain employed or find employment. Furthermore, economic conditions are one of the foundations of mental wellness. This means that when one is living in a more deprived area you are more likely to suffer from mental health issues.

According to the BJPsych Bulletin study, 23% of men and 26% of women had mental distress potentially related to a psychological disorder in the most impoverished areas in Scotland, compared with 12% and 16% of men and women on the opposite side of the economic spectrum.

Mental Health in Children

Psychological problems often start at a young age and can have serious consequences as individuals progress through life. This starts people at a social disadvantage lacking stability to keep long-lasting relationships. Additionally, child psychological problems also lead to economic issues. Researchers found family income for those aged 50 who suffered childhood traumas decreased by 25%.

TPO Cambodia

This is an organization directly confronting the issues mental health brings by trying to identify problems Cambodians are experiencing to help them better function in their jobs, families and societies as a whole.

TPO Cambodia works to provide local community-building mental health programs that offer more effective and cost-friendly care than mental hospitals which can lead to dehumanizing patients.

The ultimate goals of their programs are to educate Cambodians on mental health issues and become more aware of previously unseen issues in their own lives. Healing scars and social conflict are also important so that Cambodian citizens feel more invigorated and active to be able to actively participate in society.

Since its establishment in 1995, more than 200,000 Cambodians received mental health care and support.

Mental health is a serious issue in the world today. Traumas often start at young ages and can have serious consequences on the economic and societal well beings of citizens. However, with organizations such as TPO Cambodia tackling this issue, more and more are becoming aware of mental health and its effects and are receiving treatment.

–Alex Havardansky
Photo: Flickr