Archive for category: Global Poverty

Key articles and information on global poverty.

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6 Facts about Mental Health in North Korea

Mental Health in North KoreaAs one of the most secluded nations on earth, it is no surprise that many aspects of North Korean life remain a mystery to outsiders. However, the lack of psychiatric help for mental health in North Korea is well documented and corroborated by defectors. According to a 2014 South Korean study published in the National Library of Medicine, 76.3% of North Korean defectors suffered from mental illnesses that typically went untreated in their homeland. As opposed to the Western view of mental health as a health problem that should be treated by medical professionals, North Korean society sees mental health issues as a byproduct of the individual’s lack of support for the nation’s “revolutionary” ideology.

5 Facts About Mental Health in North Korea

  1. A medical problem misdiagnosed as political. Among both elites and those in poverty, mental health conditions in North Korea tend to go untreated and there are no counselors and psychotherapists. Instead of clinically treating mental health in North Korea with counseling, compatriots view those who have mental health issues as dissidents who are disloyal to North Korean ideology. As a result of this stigmatization, mental health is a very taboo topic in North Korean society.
  2. Number 49 Hospitals. Although North Korea does not utilize psychiatry or counseling to treat mental illness, those deemed mentally ill are placed in “Number 49 Hospitals” upon their family’s request. These facilities practice antiquated techniques such as insulin-coma therapy, where staff members inject “subjects” with high doses of insulin in order to create a coma-like state that lasts for days. The stigmas surrounding “49” inhabitants also cause North Korean society to brand these individuals as outcasts. As a result of this, families with relatives in “49” facilities often lose sociopolitical status due to stigmas.
  3. Defector’s Trauma. According to Dankook University professor Jin-Won Noh and National Medical Center psychiatrist So Hee Lee’s October 2020 study “Trauma History and Mental Health of North Korean Defectors,” only 5% of adult North Korean defectors did not have exposure to trauma when in North Korea. Out of the 95% who dealt with traumatic events in the North, the most common types of trauma stemmed from witnessing government executions, enduring starvation, starvation-related deaths of family and friends, witnessing extreme physical assaults and “escaping arrest following defection.” North Korean defectors also struggle with assimilating into South Korean society due to cultural and linguistic differences.
  4. Long-Term Effects of the Arduous March. North Korea’s famine in the 1990s caused catastrophic death tolls, with millions of citizens dying from hunger. The international aid given to North Koreans during the Arduous March also directly undermined the North Korean government’s claims of self-reliance and complete isolation. However, its effects on mental health are long-term, with these traumatic experiences linked to drug addiction and mental illness among North Koreans. For example, Lee Kwan-Hyung, a researcher from the Seoul-based Database Center for North Korean Human Rights, estimated that 30% of North Koreans used drugs as of 2016, with methamphetamine and opioids the most common. Due to its appetite-suppressing properties, methamphetamine usage spiked during North Korea’s 1990s famine.
  5. Malnourishment’s effect on the brain. Between 2018 and 2020, 42% of North Koreans experienced malnourishment. This extreme food insecurity also has extremely damaging effects on mental health and brain development. For example, malnourishment is linked to mental health issues such as depression, anxiety and concentration difficulties.
  6. Organizations that Aim to Help. Due to its isolationist nature, organizations outside of North Korea cannot provide mental health counseling to North Korean citizens living in North Korea. However, there are groups such as Crossing Borders that give assistance to North Korean defectors that cross into China. Although Crossing Borders is a faith-based group, they also perform secular duties such as providing medical support, shelter, counseling and safety for refugees at risk of trafficking or abuse.

Looking Ahead

North Korea’s failure to properly diagnose and treat mental illnesses with psychiatric care has caused the problem to fester over time. Historical traumas dating back to the nation’s strict rule and history of famine have made the problem endemic in North Korean society. However, other issues connected to mental health in North Korea, such as stigmatization of those in need of help, are not necessarily unique to North Korean society, with similar problems occurring in Western countries as well.

– Salvatore Brancato
Photo: Flickr

The Impact of Diamond Mining in DRC

the-impact-of-diamond-mining-in-the-democratic-republic-of-congoIn the Democratic Republic of Congo (DRC) many adults and children work in the diamond mines. Children as young as 6 are forced to give up their education and work for long hours in the mines. Diamond mining in the DRC has caused harsh living conditions and poverty for its citizens.

Process of Diamond Mining in the DRC

Miners work in artisanal mines and small-scale mines where the use of machinery is rare and in most cases nonexistent. Miners have to dig through layers of dirt, rock and gravel up to 50 feet deep to find the location of the diamonds. They then have to wash and sift through it to find any remnants of diamonds.

The miners’ bosses then take the diamonds and the Congolese people only receive a small portion back. In 2004, the DRC mined a total of $1 billion in worth, its treasury department only saw $40 million of it.

Impact on People

Because of the harsh conditions of diamond mining and the little pay it provides to the workers, much of the Democratic Republic of Congo is in poverty. According to UNICEF, the DRC contains over 50% of Africa’s water reserves, but 33 million people in rural areas do not have access to potable water.

In the village of Tshikapa, the cost of food is very high because people turn to diamond mining over agricultural farming, leaving the fields with no workers, according to the Time. The roads are unpaved and many can’t even visit a doctor because the price is too high. Hundreds of those miners each year die in drowning or tragic accidents because of the workplace environment that has no safety regulations.

On June 9, 2022, a collapse in one of the artisanal mining wells occurred killing six people in total. Because they often dig these wells by hand and have no safety precautions, people often die mining diamonds. Additionally, last year, a toxic spill from a diamond mine in Angola killed 12 people in the DRC, because of the pollution of the River Congo.

Environmental effects are very common as pollution of water sources and exploitation of water occur because of the mines’ locations and the materials needed to run the mines.

Helping the Miners

While diamond mining in the DRC negatively affects many Congolese people, there are organizations taking steps to stop these blood diamonds. In 2003, Global Witness, an NGO dedicated to ensuring the relationship between natural resources and the environment globally, launched the Kimberly Process, a government-pioneered safety certificate.

Since its launch 75 diamond-producing countries have taken part in this process and are required to establish safe and conflict-free export and import systems. This is one of the first actions taken to stop blood diamonds worldwide.

Diamond mining in the DRC has affected the Congolese people for many years. Many can’t access the resources they need to survive because the mines infect the water sources, environment, and infrastructure of cities in the DRC. Even though many of the miners are suffering in poverty, there are steps in place that are working toward a safer and more sustainable process of mining diamonds in the DRC.

– Janae O’Connell

Photo: Unsplash

Increase in Orphans in Peru Following COVID-19

increase-in-peruvian-orphans-following-covid-19Peru has the highest per capita death rate of COVID-19 compared to any other country in the world. As of August 2022, roughly 214,000 Peruvians have died from COVID-19 out of the country’s population of almost 34 million. As of November 2021, Peru has had nearly 6,000 citizens die from COVID-19 out of every million Peruvians. Peru’s high mortality rate has caused massive devastation to the country’s economy and health care. However, something that has gone under the radar to most people is the large spike of orphans in Peru. As of April 2021, it is estimated that around 93,000 children in Peru had lost a parent to COVID-19.

Influx of Orphanages

Reportedly one out of 100 of Peru’s children’s population lost at least one parent to COVID-19. This large statistic only added to the grand total of 550,000 children who grow up parentless. Many children have lost their grandparents to COVID-19, which leaves devastating results for children in a country where it is common for grandparents to be the primary caregiver of their grandchildren.

Child poverty increased as a result of the pandemic as well, with around 39% of Peruvian children living underneath the poverty line, according to UNICEF. There are even some parents who are choosing to move to orphanages so that their children will have access to food and water.

This rising influx of Peruvian orphans poses a determinant to the mental, physical and economical health of Peru’s future generation. In addition, at least 1,000 Peruvian children have died as a result of COVID-19, The Guardian reports.

Solutions

As a result of the massive uptake of orphans, the Peruvian government introduced the “orphan pension.” Introduced in March 2021, the orphan pension pays $55 monthly to children under 18 who lost a parent as a result of COVID 19. These cash transfer programs intend to address childhood poverty by fostering human capital investments in children. Evidence suggests that children who receive cash transfers receive positive benefits such as reduced poverty, increased food consumption, and increased access to mental health services, according to The World Bank report.

This increase in orphans in Peru is a serious matter. However, spreading awareness and bringing effective sources to the matter is a great stepping stone to fixing the problem at hand.

–Luke Sherrill
Photo: Flickr

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Argentina’s Economy Minister Resigns

Argentina’s Economy MinisterOn July 2, 2022, Martín Guzmán announced his resignation from his position as Argentina’s economy minister, which he held since December 2019, through a seven-page letter posted on his Twitter account. The decision arrived amid conflict in the government concerning the country’s current economic crisis and Argentinian Vice President Cristina Fernández de Kirchner pushing for Guzmán to leave his position. Guzmán alluded to recent disagreements “within the government coalition” as a reason for his departure. Many members of his team have also resigned.

Guzmán’s Career

On December 6, 2019, Argentine President (then-president-elect) Alberto Fernández designated Guzmán as Argentina’s economy minister. At the start of this career, the newly appointed Brown graduate had his first bill approved by the Senate just 11 days after his first day in office. The bill imposed tax increases in specific areas of the middle and upper class while providing tax benefits to the impoverished.

In early August 2020, the Argentine economy minister struck a deal to restructure $65 billion in foreign bonds. Most notably, the former minister engineered a $45 billion debt deal with the International Monetary Fund (IMF). The agreement aims to “promote growth and protect social programs” to tackle Argentina’s economic crisis.

Before resigning, Guzmán planned to head to France to discuss a $2 billion debt deal with the Paris Club of sovereign lenders.

Argentina’s Economic Crisis

Argentina’s economy has been suffering for decades. In July 2022, many Argentine sovereign bonds were worth as low as 20 cents on the dollar — a stark difference from higher rates in October 2020. Inflation in Argentina is staggeringly high, moving toward 70% by the end of 2022. As of July 2022, one United States dollar is worth about 126 Argentine pesos and this exchange rate is still increasing.

An economic disruptor includes truck drivers’ strikes, which have halted delivery of grain, “one of Argentina’s main imports,” to ports. In addition to the COVID-19 pandemic, the devaluation of the peso and a sizeable foreign debt of more than $323 billion by 2020 have sent Argentina into further economic turmoil.

Alongside these struggles, Argentina’s poverty levels are sharply increasing. Due to the severe inflation, the poverty rate in urban centers stood at 37% in the latter half of 2021 and is expected to increase to 39% after the first six months of 2022. This would equate to 500,000 more impoverished people.

The Economy’s Future

Guzmán’s resignation has raised concerns over the economy’s trajectory, most fearing it will head in an even worse direction. Other concerns regard Guzmán’s IMF deal and whether Argentina can meet these needs without the architect of the deal.

On July 3, 2022, one day after Guzmán’s resignation, President Fernández named Silvina Batakis Argentina’s new economy minister. Batakis previously served as the Secretary of Provinces in the Ministry of the Interior and as economy minister of the Buenos Aires province from 2011 to 2015. This week, she stated her belief in “fiscal balance” and her intention to follow President Fernández’s economic program.

In June 2022, the deal with the IMF that former minister Guzmán crafted underwent its first review. This is a sign that the deal may indeed make progress and ultimately come to fruition. A press release regarding this step stated that the program’s policies “will be critical to support Argentina’s economic recovery.”

There are other solutions and aids to Argentina’s economic crisis besides the appointment of a new economy minister — foreign aid. Amid this instability, at least 48 NGO projects in Argentina aim to improve the lives of the country’s poor. A notable organization is Fundación Integrar (Integrate Foundation). The foundation helps young Buenos Aires and La Pampa citizens living in poverty complete their higher education by providing financial aid and guidance to students. With the help of donations, the foundation has given higher education scholarships to 140 students to date.

In office, Argentina’s new economy minister Batakis will need to address the nation’s high inflation rate and foreign debt along with an increasing poverty rate. Yet, she is not alone in this fight — a deal with the IMF is underway and tens of organizations are serving the country’s poor.

– Sophie Buibas
Photo: Flickr

Migrant Workers in Qatar and the 2022 World Cup

the-migrant-workers-in-qatar-making-the-2022-world-cup-possibleSpontaneous celebration swept Qatar in 2010 after the FIFA governing body awarded the country the right to host the 2022 World Cup. The small gulf country is now set to host the world’s most expensive World Cup with more than $200 billion in infrastructure spending. Qatar has undertaken the building of a new airport, seven new stadiums, the expansion of metro lines and the laying of new roads to accommodate more than a million tourists expected to attend the games. With more than a decade of labor going into preparations and more than $17 billion in projected economic benefits to the Qatar economy, the 2022 World Cup is a massive undertaking with a big payout. Few recognize the extent to which the migrant workers in Qatar are responsible for making this all happen.

Migrant Labor in Qatar

About 30,000 migrant workers have undertaken the task of erecting these state-of-the-art stadiums, most of whom traveled from Asia and Africa in search of greater economic opportunity. Even after the stadiums are complete, migrant workers will be responsible for the day-to-day service operations and hospitality provided to guests of the World Cup. The long-awaited thrill of the soccer games themselves and the economic output that the events will provide for Qatar would not be possible without the hard work and sacrifice of these impoverished migrant workers in Qatar.

However, Amnesty International reports that these workers endure exploitation despite their vulnerability and necessity to the project. Individuals are subjected to high debt procured while trying to cover illegal recruitment fees. For example, about one-third of the Qatari foreign labor force consists of Nepali and Bangladeshi migrants whose typical recruitment fees amount to around $4,000 each — a debt that takes a minimum of 12 months to pay off.

Another practice that has received increased scrutiny as World Cup preparations are underway is the protracted non-payment of wages. This is a particularly distressing issue considering that workers must make payments on the loans they took out to cover recruitment fees. Many workers are also responsible for family members back home, who rely on them financially. Amnesty International found that thousands of workers have endured underpayment or no payment at all for months and sometimes years.

In 2019, hundreds of migrant workers in Qatar took part in protests over these practices and the generally poor working conditions.

The Kafala Labor System

Key to this exploitation is the “kafala” legal system of labor, in which private companies and employers can sponsor migrant workers, providing housing in dormitories and covering foreign relocation expenses. These migrant laborers are bound to their sponsoring employers and cannot quit, change employers or leave the host country without their employer’s permission. Workers cannot join trade unions either.

The good news is that in 2017, Qatar signed a treaty with the United Nation’s International Labour Organization, promising reform. Qatar lived up to that promise through the passing of several pieces of legislation. In 2018, the country ended the requirement that migrant workers obtain permission from their employers to leave the nation, and in 2020, Qatar undertook further reform to allow all migrant workers to change jobs without their sponsors’ permission and introduced a minimum wage.

In March 2018, Qatar also established Committees for the Settlement of Labour Disputes to stand in place of the country’s “ineffective [labor] courts.” These Committees guaranteed that workers would receive their judgments from the court within six weeks. Qatar also established a “workers’ support and insurance fund” for exploited workers who do not receive payment from their employers.

The Story of Bijoy

However, the promise of these reforms has not quite panned out as desired as courts are overwhelmed with cases and processing times are backed up. Amnesty International’s reporting on Bijoy’s story captures the human toll of this bureaucratic backlog.

Bijoy is a migrant worker from India who worked for three years at a Qatari construction company. Bijoy had more than $3,500 of unpaid wages owed to him by the company. He waited three months to have his claim processed by the labor committee, living in conditions of squalor with no money. Finally, after seven months of non-payment, Bijoy accepted just $275 and ticket fare for a flight to India as compensation as he had a sick father to return to in India. Stories like Bijoy’s are unfortunately all too common.

Looking Forward

As the November 21 World Cup 2022 kick-off date approaches, excitement is building around the world as audiences prepare to experience the culmination of years of planning and effort. However, Amnesty International is advocating that FIFA and the Qatari government refund recruitment fees and compensate individuals for abuses before the footballing celebrations move forward. Amnesty International recommends that FIFA set aside $400 million out of the $6 billion in expected revenue, almost equivalent to the total prize fund for the World Cup, for these purposes. Amnesty International continues to push for a commitment to compensation from Qatar and FIFA, hopeful that Qatar will, as it has done in the past, implement the reforms and restorative justice necessary to uphold the rights of migrant workers in Qatar.

– Grace Ramsey
Photo: Flickr

Bukavu’s Elderly Produce Sustainable Energy in Congo

how-the-rainforests-waste-is-used-to-produce-sustainable-energy-in-congoIn Congo’s easterly city of Bukavu, Bavon Mubake, a 62-year-old recent retiree, is helping to provide cheap, sustainable energy to the community while conserving Congo’s forests. By creating fuel pellets through reused waste, Mubake has set an example of how to produce sustainable energy in Congo.

Producing Sustainable Fuel Pellets

With plenty of energy and enthusiasm to spare, Mubake provided the spark to change his community for the better. The process begins with collecting waste such as leaves, maize stalks and cardboard. This mixture is soaked, dried and ground into a powder, which is then combined with sawdust to mold into energy-giving briquettes that communities can rely on for fuel.

“This work helps me to educate my children, to have food on the table and also to have enough to buy clothes and other things,” Mubake explains in an interview with Reuters.

Mubake’s work presents a lifeline for those in communities that have limited or no access to energy. According to Our World in Data, as of 2020, access to electricity sat at 19.1% across Congo. A lack of access to energy contributes to poverty in the nation. According to the International Monetary Fund (IMF), in 2018, 73% of the population in Congo experienced extreme poverty.

Mubake and other retirees like him create the sustainable fuel pellets at Bukavu’s Rehabilitation Center for the Elderly. Three months into operation, the center produces an average number of 2,000 briquettes on a weekly basis. The sale of the briquettes produced by Mubake and the other retirees provides a source of income for the group.

Protecting Congo’s At-Risk Environment

The briquettes look to provide a sustainable alternative to the more traditional means of energy usage in Bukavu — locals cut down trees in the national park to use as charcoal. With the considerably low price of the sustainable briquettes made from waste standing at just $0.05, there is hope that efforts such as these, spearheaded by locals within the community, will help to reduce the dependency on Congo’s natural abundance of forest.

Dependence and depreciation of Congo’s natural forests are also fuelled by the abundance of high-value resources. According to World Wildlife Fund, “The Congo Basin is abundant in natural resources such as timber, diamonds and petroleum, but current methods and rates of extracting these resources are unsustainable and threaten the future of this vast wilderness area.”

Mubake’s innovation presents a solution to a much more significant problem that Congo faces, as the preservation and security of the Congo Basin are constantly under threat. On top of the ever-growing demand for natural resources across the Congo Basin, mass agricultural projects particularly in the region of South Kivu, home to Bukavu, present a genuine threat to wildlife due to deforestation.

According to data provided by Global Forest Watch, in a 20-year-period from 2001 to 2021, Congo lost “34% of its total tree cover loss.” Tree cover across the Congo Basin not only helps to deal with the absorption of harmful emissions but provides a home to countless unique and endangered animals such as the eastern lowland gorilla.

Ensuring protection for endangered species such as the eastern lowland gorilla is vital to annual tourism as thousands of tourists every year travel to Congo to experience one of the nation’s greatest spectacles. Not only do attractions such as the eastern lowland gorilla help to further Congo’s economy but they also help to provide employment for impoverished people within the community.

Through the efforts of Bukavu’s elderly, access to energy in Bukavu, while not universal as yet, is heading toward a promising goal. Hope remains that such actions will set a precedent for how communities can produce sustainable energy in Congo through initiative.

– James Garwood
Photo: Flickr

Nuclear Energy In Developing Countries

Nuclear Energy In Developing CountriesIn early 2020, the COVID-19 pandemic caused a rapid drop in energy demand, laying the foundation for an energy crisis. This foundation was strengthened by the 2020 Russia-Saudi Arabia Oil Price War and cemented by the 2022 Russian invasion of Ukraine, culminating in the collapse of the global oil trade, starting the energy crisis. The energy crisis has hit developing countries the hardest, as developing countries are more reliant on non-renewable sources of energy. As a result, renewable sources of energy, such as nuclear power, are gaining popularity in developing countries as a way to provide energy beyond the methods hurt by the energy crisis. However, nuclear energy in developing countries is still in its infancy. Here are some facts regarding the future of nuclear energy in developing countries.

4 Facts About Nuclear Energy in Developing Countries

  1. Countries Can Form New Partnerships. The most commonly used source of nuclear energy in developing countries, uranium, is not found in every country. By creating nuclear power plants based on uranium, many developing countries give off the impression to nations unaligned with them that they are looking to enter into new trade deals. This was the case in Pakistan in March 2021, when it completed a nuclear power plant with the help of China. This cooperation led to a new trade agreement between Pakistan and China that allowed for a greater exchange of minerals such as those necessary to help build the power plant.
  2. Protection Against Natural Disasters. Out of the 10 deadliest natural disasters in 2021, most of them occurred in developing countries. The threat of a natural disaster is a leading cause of anti-nuclear sentiments, as damage to a power plant could cause tens of thousands to have to evacuate and potentially kill thousands of people. However, through new thorium-based reactors, it is almost impossible to cause a meltdown in a modern nuclear power plant. This is because new reactors make use of a liquid form of thorium that relies on a plutonium battery to produce energy. If a natural disaster were to occur, the thorium could be drained away from the plutonium battery, preventing a meltdown and saving the lives of thousands of people in developing countries.
  3. Defense Against Terrorism. In many developing countries, terrorists pose a major threat to the energy industry. This is evident how in 2019, the Houthi destroyed an oil facility in Saudi Arabia, impacting the production of 5 million barrels per day, according to The Guardian. However, because of new isolation-based reactors, nuclear power plants do not face the same threat. This is because thorium is not a weaponizable material, since its fission doesn’t produce plutonium, which is one of the elements that nuclear weapons use.
  4. Removing the Reliance on Fossil Fuels. Due to an already established reliance on coal, oil, or other fossil fuels, it might be difficult for a developing country with a fossil fuel-based energy system to transition to nuclear-based energy. Despite this, investing in nuclear power has benefits in the long run, even if a developing country has a reliance on fossil fuels. International Atomic Energy Agency (IAEA) projects that by 2050, nuclear energy “could contribute about 12% of global electricity.”

Looking Forward

While nuclear energy may have a slow start in many developing countries, it certainly has a promising future. For instance, in March 2022, Nigeria committed itself to construct a power plant, which could provide energy to millions of impoverished Nigerians.

Along with that, in 2021, Bangladesh began construction of the Rooppur Nuclear Power Plant with the primary purpose of solving Bangladesh’s longstanding energy problem.

There are certainly hurdles to developing nuclear energy in developing countries. However, as seen in Nigeria and Bangladesh, it is definitely possible to establish nuclear energy within developing countries. As these countries transition away from fossil fuels and into renewables such as nuclear energy, they could be providing a stable source of energy to tens of millions of impoverished people that could live a life with energy without the threat of global disruptions.

– Humzah Ahmad
Photo: Flickr

Orbán Might Increase Poverty in Hungary

Poverty In HungaryAfter joining the European Union in 2004, Hungary seemed to be on the path toward a more prosperous future. However, once Hungary’s Prime Minister Viktor Orbán touted the idea of Hungary becoming an illiberal state, tensions between Brussels and Budapest reached new highs, threatening to destabilize the European Union with an autocratic member and potentially increase poverty in Hungary.

Orbán Erodes Democracy in Hungary

After first holding office from 1998 to 2002, Prime Minister Orbán returned as head of government in 2010, wanting to redesign governmental institutions. Orbán, a member of the Fidesz political party, subverted democratic norms and cemented one-party rule to ensure his assignment as prime minister and the supermajority of his party Fidesz.

In more than a decade since Orbán returned to the premiership, the Prime Minister and Fidesz have completely undermined Hungary’s democracy, erasing governmental integrity through the following methods:

  • Rewriting Hungary’s Constitution
  • Undermining the independence of the judiciary
  • Controlling media, including the Internet, television channels and even school textbooks
  • Gerrymandering to guarantee a Fidesz majority
  • Suspending civil society organizations

As a result of Orbán’s reforms, the think tank Freedom House demoted Hungary to the status of partly free, indicating that Hungary’s democracy is at the cusp of autocracy, according to E-International Relations.

Poverty in Hungary

Despite Hungary’s descent from a protected democracy, poverty under Orbán’s leadership is reaching new lows.

From 2015 to 2019, there was a 2.2% drop in poverty rates, leaving only 12.3% of Hungarians below the national poverty line. The COVID-19 pandemic interrupted this trend of alleviating poverty rates, but official numbers are not yet available, as per the World Bank.

Hungary Depends on EU Funds

As Brussels and Budapest continue to clash, Hungary may become subject to financial repercussions. As one of the largest recipients of EU funds, the landlocked nation may find itself in tough times if cut off from much-needed aid.

From the 2014-2020 budget, Hungary received €40 billion ($40.8 billion). In just 2018, Hungary received €6.3 billion ($6.43 billion) from the EU, almost 5% of the country’s GDP.  Without EU funding, the nation’s economic growth and ability to counter domestic poverty may stagnate or suffer.

Confrontations Between the EU and Hungary

Hungary’s turn against democratic norms puts it at odds with the European Union, prompting concerns about whether the EU should continue funding the nation as it refutes the multinational organization’s liberal democratic values.

Hungary’s violations of rule-of-law principles by undermining the country’s judiciary, education system and electoral integrity have prompted the EU to assess the best path forward to divert Hungary from autocracy, according to E-International Relations. In addition, the EU has accused Hungary of mishandling its funds, citing a lack of transparency and corruption (including 52 probes into misuse of funds) in how the nation utilizes EU funds.

In the past, the European Union has explored two main tools to handle Hungary’s disobedience: Article 7 of the Treaty of Lisbon and infringement procedures.

Under Article 7 of the Treaty of Lisbon, the EU can suspend certain rights of member states if a nation violates liberal democratic values, according to E-International Relations. However, this procedure requires a unanimous vote by all EU member states, rendering this feat impossible due to Orbán’s staunch ally in Poland.

The other main tactic the EU has tried is infringements procedures, which, simply put, is a legal action against an EU country that does not uphold EU law. In the past, infringement procedures in Hungary totaled €100,000 a day, according to E-International Relations. However, taking Hungary to court is time-consuming and potentially too ineffective to curb the nation from authoritarianism.

Brussels has resorted to withholding funds from Hungary within the past two years. The EU prevented Hungary from accessing more than €7.2 billion ($7.34 billion) from the bloc’s coronavirus response fund, citing ongoing breaches of EU law.

Now, as tensions rise, Brussels can leverage its conditionality regulation. This tool, which came into effect in January 2021, allows the EU to withhold money from its general fund from member nations for rule-of-law breaches. The European Union can prevent Hungary from accessing €40 billion ($40.8 billion) from its 2021-2027 budget if Orbán does not abide by the EU’s rules. This robust measure, which could push Orbán farther away from autocracy, may ultimately be detrimental to poverty in Hungary.

A Path Forward

As Brussels and Budapest continue clashing over democratic principles and funding, the future of poor Hungarians is in limbo. Financial penalties could prevent infrastructural development, welfare assistance and other critical programs that combat poverty, impeding the progress made under Orbán’s regime.

However, chances for a compromise remain hopeful. In June, Orbán stated, “Everything is ready for an agreement to be struck between the union and Hungary, which I think both sides need.”

With the two sides approaching an agreement and potentially unlocking withheld funds, Hungary could hopefully be on a path away from both autocracy and poverty.

In the meantime, non-government organizations are working to combat poverty in Hungary, with Habitat for Humanity Hungary being a notable example. Habitat for Humanity began its work in Hungary in 1996 and it helps supply homes for the impoverished. In 2019, Habitat for Humanity has helped more than 230 Hungarians, trying to minimize the number of people in poor living conditions.

Although the political situation remains precarious, there is still hope for the poorest Hungarians. Brussels and Budapest are inching closer toward an agreement, hopefully bringing more assistance to the poorest Hungarians shortly.

– Michael Cardamone
Photo: Flickr

Young Innovators in Accra

young-innovatorsThe Meltwater Entrepreneurial School of Technology (MEST) is launching its 2022 Express accelerator program for entry startup companies in Accra, Ghana. Many young innovators are participating in this program. MEST’s mission is to “focus on empowering startups in Ghana that are providing solutions that use technology to drive transformational change to create a more sustainable future for all.” Sustainable social impact is a pillar of the incubator’s goals. Furthermore, the professional development of women entrepreneurs will receive priority for the upcoming cohort.

Accra is rapidly becoming one of the leading tech hubs in the world. As a center for innovation, talent from around West Africa are starting companies in Ghana. Rising regional innovators will soon arrive at MEST’s offices to fine-tune their projects into successful enterprises.

The Impact

The 20-week accelerator program began on July 28, 2022. Each startup receives $5,000 at the start of the program to develop its projects. Then, top-performing participants obtain $20,000 in equity-free funding for further business growth. Young innovators in Accra are getting the capital they need to build their emerging companies.

Along with funding, MEST supports entrepreneurs through mentorship and networking. The incubator’s team of experienced consultants gives a new perspective to growth stage projects. Sector experts help participants develop marketing strategies and identify target audiences. Furthermore, the MEST Express accelerator program connects young innovators in Accra with a transnational entrepreneurial community and investors.

Finally, the MEST curriculum develops business soft skills. The model prepares entrepreneurs for the professional world through leadership, communication, critical thinking and team-building development. Each startup must present its project at the end of the program. Program alumni gain valuable experience for future opportunities in the field. MEST is producing the next generation of young innovators in Accra.

Bottom-up investment is impactful on a local level and benefits macro-economic health. Startup entrepreneurs tend to be more in touch with community issues. Innovators’ products often reflect the environments they grow up in. It is essential to finance local entrepreneurs with the lived experience to properly address societal issues. MEST’s focus on social impact is funding community-driven transformation.

Through the MEST Express accelerator program, participants are empowered to become change-makers. The funding provides opportunities and creates new wealth for young innovators in Accra. MESTS’s bottom-up investment strategy encourages a thriving middle-class in Ghana and supports domestic, as well as global economic expansion.

Startup Highlight

Codetrain is one of MEST’s many successful alumni companies. The group provides training, guidance and professional opportunities to young coders in Ghana. The company develops students with little experience into world-class software programmers and sets them up to succeed with local and international tech companies.

The program trained more than 500 students in Accra and Kumasi since it opened in 2017. Roughly 90% of these coders found employment after graduating from Codetrain. Business accelerators expand the impact and economic growth exponentially.

Future of Innovation in Ghana

While Ghana is developing into a regional tech startup powerhouse, there are still challenges facing entrepreneurs in West Africa. It is crucial that opportunities for entrepreneurial development are extended to young innovators outside of urban centers. Greater investment in Ghanian incubator infrastructure is necessary to reach talent throughout the country.

Accelerators such as MEST generate global innovation, address social issues with sustainable solutions and maintain economic health. Identifying productive business incubators and funding the expansion of these initiatives should be foundational to the United States’ foreign strategy.

Furthermore, the COVID-19 pandemic is stunting the growth of start-ups in West Africa. Combating global vaccine inequality must be a policy priority to save lives and encourage economic growth.

MEST is gathering the top young innovators in Accra for the 2022 Express accelerator program. Social impact and gender equity in the tech sector are priorities for the initiative. Startups will receive funding to advance projects. Furthermore, participants will gain valuable soft skills, professional insight and networking opportunities.

While Ghana is becoming a rising hub for entrepreneurial activity, there are still roadblocks facing young innovators. Talent in rural areas is lost due to the limited reach of opportunity. Funding is needed to expand the business incubator infrastructure throughout Ghana. The COVID-19 pandemic continues to disturb economic growth in West Africa. Global health care equity and investment in bottom-up strategies should be central to Washington’s foreign policy.

Despite these barriers, the future of Ghana’s tech sector is exciting. Many successful companies rose through MEST’s accelerator initiative. This year’s Express program in Accra is developing the next generation of entrepreneurs.

– Samson Heyer
Photo: Wikimedia Commons

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Digitization in India

digitization-in-indiaWith the highest 10% of the population holding 57% of India’s national income as of 2021, India stands as one of the poorest and most unequal countries in the world. Governments and businesses remain in search of the most effective methods to lift Indians out of poverty. Recent research has explored the benefits of demonetization and digitization in India at the individual and government level.

India has come full swing in embracing the digital age, with Aadhaar – the national biometric digital identity program – covering 99.7% of the nation’s adult population as of December 2021. The COVID-19 pandemic has further strengthened the drive to go online, with an increase in sellers on almost all e-commerce platforms. Digitization in India will help the nation make strides in poverty reduction.

Digitization and Improving the Economy

According to McKinsey, “60 million to 65 million [jobs] could be created through the direct impact of productivity-boosting digital applications” by 2025. Furthermore, with more than 10 million businesses brought to a common digital platform through the 2013 Goods and Services Tax Network, digitization is incentivizing businesses to go online, thus, enhancing cooperation and streamlining India’s fragmented and informal marketplace. Outside the commercial world, digitizing sectors such as agriculture, education and health care can create up to $150 billion of incremental economic value by 2025 as it can raise output and save on costs and time.

Digitization and Improving Government Services

Not only can digitization help boost the economy and provide jobs to millions but it can also improve the government services essential to the positive well-being of citizens. To improve urban service deliveries in Andhra Pradesh, the government and World Bank designed AI platforms to monitor municipal services. By using drones and Geographic Information System mapping, the World Bank updated town plans and geo-tagged citizens’ issues with “online visibility” to enhance transparency and hold municipal engineers accountable for resolving issues within a certain time period.

By linking applications for piped water supply to AI, the project also provided new water connections to more than 200,000 homes in 110 municipalities between 2015 and 2019. In this same time period, “revenue from property taxes and water charges more than doubled,” enabling the government to collect sufficient resources for civil projects.

The Downside of Digitization

Despite its promise for socio-economic transformation, digitization has a long way to go in lifting all classes of Indians out of poverty. As access to digital services is still largely reserved for the upper class, those living in poverty remain excluded from the advantages of e-commerce. Therefore, in some ways, digitization may be entrenching poverty instead of reducing it. This problem proves even more serious for Indian women, only about a third of whom have internet access and rely on education as their primary form of social security in 2022.

Hope for the Future

While many Indians are yet to experience the benefits of digitization, Prime Minister Narendra Modi’s Digital India program, launched in 2015, centers around the internet as a utility for all citizens. The program’s goals include “universal digital literacy” and “easy access to a Common Service Centre” for all.

With more efficient government services and more Indians gaining access to the formal marketplace, digitization in India promises a future of reduced poverty.

– Imogen Scott
Photo: Flickr