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Archive for category: Global Poverty

Key articles and information on global poverty.

Development, Global Poverty, Health, Women, Women and Female Empowerment, Women's Rights

Progress in the Fight for Women’s Rights in Costa Rica

Women’s Rights in Costa Rica
In Costa Rica, there is hard evidence to support the “feminization of poverty” in which more women and women-led households are experiencing higher rates of poverty. Between 2010 and 2016, gender inequality increased mainly through the increasing rates of income inequality. In addition, the inaccessibility of health rights for low-income women contributes to lower levels of education, delayed or restricted incorporation into the workforce and increased health risks resulting in economic repercussions that perpetuate a cycle of poverty. Therefore, reducing the gender inequality index and providing more resources to empower and fight for women’s rights in Costa Rica is paramount.

The Statistics

The gender divide continues to persist in Costa Rica and maintains a large influence in many areas, including the workforce. Only 50% of women participate in the workforce as opposed to 72% of men. Women also receive about 12% less in salary, increasing this gap more since 2013. Gender roles and stereotypes translate to career development with men making up 70% of science and engineering programs in Costa Rican universities and women entering more traditionally female positions with less economic and social standing. U.N. Women has reported that the unemployment rate for women in the nation is 15%, compared to 9.1% for men. This report also provides the nation’s overarching legal frameworks that “promote, enforce and monitor gender equality” with the level of achievement ratings, with public life and employment and economic benefits receiving low scores of 70 and 60 respectively.

Recent Progress

However, the government made significant progress in the past couple of weeks by passing legislation that will work to close the gender divide and protect women’s rights in Costa Rica. The Comprehensive reparation bill for survivors of femicide, which received approval on April 28, 2022, will provide support to the families of femicide victims. Since 2007, 400 women have died of femicide with 51 cases still pending investigation. This bill will provide a comprehensive reparation fund for the families of victims, supporting them through the psychological, social and economic effects of this crime.

In addition, the government enacted the Law to Prevent, Address, Punish and Eradicate Violence against Women in Politics on May 3, 2022. This law protects the political rights of women and considers such actions as the prevention of a woman exercising the responsibilities of their position, restriction of workplace reincorporation following pregnancy, undermining their public image and disclosing their private information. As the National Women’s Institute of Costa Rica (INAMU) stated, the law also “considers discriminatory actions that affect the right to life, personal integrity and property rights to prevent the free exercise of political rights, as well as harassment, physical, psychological or sexual violence.” Consequences for members of politics that engage in this behavior range from ethical reprimands to the withdrawal of credentials.

Organizations in Costa Rica

Both the National Women’s Institute of Costa Rica (INAMU) and the Vital Voices nonprofit organization make up a large presence fighting for women’s rights in Costa Rica. INAMU is a governing institution that supports the expansion of women’s rights in coordination with the Costa Rican government by reinforcing the national effort toward the cause and providing comprehensive information training and resource access.

Vital Voices advocates for women’s rights in Costa Rica through its investment in women leaders that support the fight for change. Through its multifaceted approach, it addresses multiple issues in the nation including climate justice and political and policy advocacy. One of its many tenets includes the economic empowerment of women leaders by financially supporting their businesses, social enterprises and nonprofit organizations which in turn can boost the progression of their platform. Vital Voices is also fighting against gender-based violence by investing in leaders that strengthen the legislation around this issue, providing life-saving services immediately following an incident of violence and increasing the capacity of survivor-focused organizations to deliver locally-based solutions.

Although Costa Rica has seen some progress, there are more steps that the country can take. Income inequality is the most prevalent obstacle that many women in the nation are facing. Resolving inequality in the workplace can expand opportunities and give women more agency which in turn could lead to the disruption of the poverty cycle. The new legislation that passed will also allow women more freedom to be active participants in society through femicide prevention efforts and the protection of their workplace rights.

– Kimberly Calugaru
Photo: Flickr

June 8, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-06-08 07:30:232024-05-30 22:24:07Progress in the Fight for Women’s Rights in Costa Rica
Global Poverty, Technology

M-PESA App in Kenya Alleviates Poverty

M-PESA App in Kenya
In 2007, Safaricom developed the M-PESA app in Kenya, Africa. The mobile money platform aims to increase financial inclusion by allowing the impoverished access to financial services without the need to visit a bank or have a bank account. The introduction of the M-PESA mobile money app has improved the economy in a nation with about 16% of the population surviving on less than $1.90 per day in 2021.

The M-PESA App

Accessibility is one of the benefits M-PESA offers. The app is accessible to both individuals and businesses and even those living in rural villages can easily access it as long as there is mobile connection coverage. Through the app, users can send and receive money, purchase airtime and pay bills, among other services. M-PESA also “facilitates the safe storage and transfer of money.”

A study conducted by an economics professor from Georgetown University and a colleague from MIT shows that 96% of the Kenyan population used the M-PESA app in Kenya in 2016. By 2021, the app had roughly 30 million users in Kenya alone. The M-PESA app expanded to six other African countries and served 50 million users across the African continent by September 2021, making it the largest fintech in Africa.

Benefits of the M-PESA App

M-PESA is able to improve a country’s financial outlook by reducing poverty. The app allows users to take control of their finances and increase consumption levels of goods and services. A research article, “The Long-Run Poverty and Gender Impacts of Mobile Money,” published in Science magazine in December 2016, indicates that over six years M-PESA “increased consumption levels,” which allowed about 186,000 Kenyan families (2% of Kenyan households) to rise out of poverty.

The researchers conducted a study from 2008 to 2014 to compare households with easy access to M-PESA agents to “those without such easy access to mobile money.” The result showed that households with easy access to M-PESA agents “fared better and received more remittances from a larger network of people.” Highlighting this, when Kenyan households endured a financial shock, “there was a 12[%] difference in per capita consumption between the two groups, with consumption rising for those households near to an M-PESA agent.”

In Kenya, about 25% of the $44 billion economy goes through M-PESA, according to a 2014 article by Mobile Transaction. Furthermore, by the end of 2013, more than 79,000 people received opportunities to work as M-PESA agents. By 2018, the World Bank noted more than 110,000 M-PESA agents in Kenya.

Mr. Mungai, who operates two M-PESA shops in Kenya, told the Mobile Transaction that the app had made his life much easier and provided him with a stable job. “M-PESA has changed my life; it helps me make savings. I don’t need to travel to and from the bank every now and then because I can now deposit and withdraw from my bank account using the M-PESA platform,” Mungai added.

Evolution of the M-PESA App

The functions of M-PESA have been evolving. In 2021, M-PESA Africa launched the M-PESA Super App, which allows users access to “services they need in a typical day including shopping, restaurants and food delivery, transport services, government services” and more, without the need to install several apps. By March 2022, more than 9 million individuals and 320,000 businesses had downloaded the M-PESA Super App.

In addition, M-PESA has grown from peer-to-peer money transfers to international payments. M-PESA has partnered with MoneyGram on International Money Transfer, allowing users in more than 90 countries to transfer money across borders. Now people are able to enjoy the services and updates of the app without a SIM card. M-PESA is also collaborating with PayPal, and soon, the mobile money app intends to expand further through partnerships with other global brands.

Looking Ahead

With the M-PESA app in Kenya, Kenyans can look to a brighter future and an improved economy through easy access to financial services and increased job opportunities. Overall, M-PESA increases financial inclusion, ensuring that the impoverished in developing countries in Africa have access to the resources and services to break the cycle of poverty. M-PESA will continue to bring innovations and enable individuals to make transactions more efficiently and securely.

– Jiaying Guo
Photo: Wikimedia Commons

June 8, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-08 07:30:072022-06-01 06:21:56M-PESA App in Kenya Alleviates Poverty
Economy, Global Poverty, Health

The Effects of Sandstorms in Iraq

Sandstorms in Iraq
Over the past few years, Iraq has been through many sandstorms constantly increasing in intensity and frequency. In April 2022, the country recorded its ninth sandstorm in two months. An extreme weather situation that makes life even harder in a country that has experienced war and poverty. The government has not been taking proper measures for years to prevent his country and the Iraqi people from suffering from such conditions. The most recent sandstorms in Iraq touched six of 18 provinces, including the capital Baghdad. Living under a thick layer of dust has many consequences on people’s health, agriculture as well as the economic situation of the country.

Effects on Health

Health complications are among the most problematic effects of sandstorms in Iraq. While exposed to constant dust in their environment, the Iraqi people see their respiratory health seriously affected. The last sandstorm led to one death and 5,000 people hospitalized following respiratory complications. The high risk of suffering from breathing difficulties led the government to close schools and official institutions. The most affected groups are children and the elderly.

According to the WMO, exposure to dust particles during sandstorms can lead to diseases such as asthma or pneumonia but can also lead to cardiac issues. Moving in the air dust facilitates the transportation and thus the transmission of viruses and other bacteria. Hence, besides the effects the sandstorms have already on Iraq, some health consequences can develop and become problematic with time in a country with financial difficulties.

Effects on the Economy

Sandstorms in Iraq have also a terrible impact on the country’s economy. Among the most affected sectors is the agriculture sector. Previously one of the most prolific sectors of the country, living from agriculture became very difficult for farmers today. In fact, the extreme heat, lack of water and dust brought by repetitive sandstorms have ruined many of the crops strongly affecting the revenues of the farmers who are already struggling to make the ends meet.

This exceptional weather is also affecting merchants. However, for them to survive, they have to open their shops amidst the sandstorm, despite the government suspending working hours for everyone besides the medical field. Some of the merchants saw their sales decreasing given that the thick layer of dust wrapping the city discouraged people to go shopping outside. On another note, three of the Iraqi airports closed for several days due to the lack of visibility the sandstorm caused.

Facing Environmental Challenges

It is worth mentioning that despite the limited means and capacities of the Iraqi state and despite the COVID-19 outbreak and all the difficulties it brought to the health sector, the victims of respiratory diseases always had access to oxygen and proper medication. The government ensured that hospitals have abundant oxygen reserves in most affected regions. Ambulances were also positioned on all the streets to respond to any emergency.

Although being prepared to face medical emergencies is essential during these extreme conditions, thinking of how to prevent Iraq from facing sandstorms again in the future is essential. The ministry of agriculture announced a project supported by the European Union to improve agriculture and create new jobs. More than just opening new jobs, this project is a good start to preventing future sandstorms in Iraq, given that the increase of green areas decreases the frequency and intensity of sandstorms.

Sandstorms in Iraq are becoming a major problem the country must deal with, in addition to all the challenges it must face in terms of the poverty of its population. However, the Iraqi people are resilient and do everything to keep life going despite this extreme weather situation. Even the government is taking small steps to protect its people and their future.

– Youssef Yazbek
Photo: Flickr

June 8, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-06-08 01:30:462024-05-30 22:26:03The Effects of Sandstorms in Iraq
Global Poverty

Severe Heat Wave in Pakistan

Heat wave in Pakistan
Since late April 2022, Pakistan has been suffering from an unprecedented heat wave with temperatures touching 50 C (122 F). Although heat waves in Pakistan have been a common occurrence since 2015, these climatic conditions are touching the country earlier each year and their intensity and duration are increasing due to extreme weather patterns. This meteorological phenomenon severely affects the Pakistani people in several ways, from health issues to food, water and infrastructural crises. With temperatures standing at 6-9 C higher than usual for this time of year, the heat wave in Pakistan is affecting cities and rural areas and has lethal effects on children and the elderly.

Consequences on Health

The heat wave in Pakistan is threatening the health of the Pakistani people, especially the most vulnerable groups. With the unusual increase in temperatures, on May 14, 2022, the country already declared three deaths among children due to the severe heat.

The country observed cases of children collapsing under the sun. The poverty in which many regions and families live in Pakistan forces children to often walk to school amid this unbearable heat. Also, many schools do not have proper climatization to allow the students to attend their classes in a cool environment.

To address the effects of the heat wave on people’s health, an NGO opened a heatstroke clinic in Jacobabad and noted rising cases of heatstroke patients. Heatstroke occurs when the body overheats and cannot cool itself anymore, leading to several symptoms ranging from headaches and nausea to more serious effects such as organ swelling and unconsciousness. Despite this, students continue to go to school with the hope of escaping poverty and moving toward a better quality of life. Besides children, the extreme weather affects laborers who spend their days under the sun, but unfortunately, have no alternative if they want to earn enough money to survive.

Food and Water Crisis

Other consequences of the heat wave in Pakistan are food and water scarcity. With very high temperatures and insufficient water, the crop and food supply are in danger. The heat wave in Pakistan also affects livestock that are essential to the food supply of the country —  many sheep have died from heatstroke in Punjab, a province that stands as the breadbasket of Pakistan.

The water crisis is a critical aspect of the heat wave in Pakistan. As government-installed taps are mostly dried out, people find it very difficult to find drinking water. Unfortunately, mafias are benefiting from this situation by exploiting government water reserves and reselling them to those in impoverished and underserved regions.

The lack of access to sufficient water supplies is thus a primary cause of the health issues people endure and makes the heat wave even more unbearable. Furthermore, with a power shortage that only allows for six hours of daily electricity in the county’s rural areas, citizens struggle to cope with the heat.

Ironically, excess water can also harm many people. Pakistan is “home to more than 7,000 glaciers,” the melting of which can lead to the overflowing of lakes and rivers and cause “torrents of ice, rock and water” to destroy the infrastructure of a city. This already happened once this year, in early May, causing the destruction of a bridge.

Taking Action

Given the urgency of the situation, two NGOs are playing an essential role in helping people to survive the heat wave in Pakistan. Both are mainly located in the Sindh province, one of the areas that the extreme weather situation most affected. The first NGO is the Community Development Foundation, which opened a new health center dedicated to victims of heatstroke.

The Pakistan Red Crescent, in collaboration with the Provincial Disaster Management Authority, launched a 10-day training for officials and civil society representatives to learn how to adequately respond to “heat-related emergencies,” such as heatstroke, unconsciousness and dehydration as well as the transportation of patients suffering from any of these issues. The Pakistan Red Crescent also promised to continue with similar training in the future, especially with the younger generation.

The case of Pakistan shows that despite all the crises and challenges a population living under extreme weather patterns must face, support from organizations can make all the difference. By training people to respond to health emergencies, the Pakistan Red Crescent diminishes the pressure on health care professionals and increases the chances of people surviving heat-related health conditions. Despite these severe conditions, children continue to go to school with the hope of receiving an education that will enable them to rise out of poverty.

– Youssef Yazbek
Photo: Unsplash

June 8, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-08 01:30:302024-05-30 22:26:03Severe Heat Wave in Pakistan
Global Poverty

Gender Wage Gap in Australia

Gender Wage Gap in Australia
Australia has the world’s 13th-largest economy by gross domestic product (GDP) in 2022. Nonetheless, there is a significant gender wage gap in Australia. According to the Australian Workplace Gender Equality Agency (WGEA), the gender wage gap is the difference in average earnings between females and males. A variety of factors contribute to reduced wages for women in comparison to men, causing the former to lag behind economically. In this sense, Australia is setting forward further acts to close the gap, given its previous shortcomings.

Overview

Over the last two decades, the gender wage gap in Australia has varied from 13% to 19%. According to the latest data from November 2021, the gender pay gap stands at 13.8%, which WGEA measured with information from the Australian Bureau of Statistics (ABS). As of November 2021, “women’s average weekly total full-time earnings are $316.80 less” than men. For women who work part-time, “women’s average weekly total earnings are $483.30 less per week than men.” The World Economic Forum’s 2021 Global Gender Gap Report ranked Australia 50th out of 156 nations, much lower than Australia’s 15th ranking in 2006.

Contributing Factors to the Gender Wage Gap in Australia

The WGEA 2021 report lists four major culprits behind the gender wage gap in Australia:

  1. Discrimination in workplace recruitment and wage/salary decisions.
  2. Gender-dominant industries, “with female-dominated industries and jobs attracting lower wages.”
  3. Women bear the burden of unpaid childcare with inadequate job flexibility “to accommodate these responsibilities,” especially in higher-level job roles.
  4. Women require more time outside of the labor force, which detrimentally affects their career advancement and opportunities for progression.

Disrupted Past Actions

Australia stood as a pioneer in implementing laws to uphold the principle “equal pay for equal work” in 1969 as well as 1972, later bringing gender equality reporting in 1986. In 2012, the Workplace Gender Equality Act came into operation, asking employers to file an annual report with WGEA containing “data by gender on remuneration, workforce composition and the recruitment, promotions and resignations of their employees.”

Furthermore, in 2017, the government introduced “Towards 2025: An Australian Government strategy to boost women’s workforce participation,” with the aim to close the gender gap in workforce participation by 25% by the year 2025. This would equate to adding 200,000 Australian females to the nation’s workforce.

Indeed, the early results were promising, with the national gender pay gap decreasing from 18.6% (2014) to 14.1% (2018). That said, the outbreak of the COVID-19 pandemic stifled progress, resulting in a minor increase to 14.2% (2021), indicating that full-time working Australian women would have had to work an additional 61 days in a period of 12 months to earn the equivalent of a male in the same position.

COVID-19 aside, Australia lacked transparency and accountability in terms of action to create change, despite “a world-leading dataset on workplace gender equality.” The incentives or penalties introduced by the nation were not effective enough to alter behavior on an organizational level. Specifically, the country only insisted on large-scale, private corporations reporting on gender equality, meaning many other entities did not have equal gender equality responsibilities.

Looking Ahead

As Australia’s economy recovers from the pandemic, Danielle Wood, CEO of Melbourne’s Grattan Institute, recommended in a report that “the Federal Government supports women’s jobs by making a longer-term investment in childcare to encourage women’s workforce participation.”

The Australian government gives the main caretaker of a newborn or adopted child 18 weeks of paid parental leave. Australian women utilize about 98% of Australia’s government-financed paid parental leave.

On May 9, 2022, the Australian Greens political party released a policy to raise wages in female-dominated industries, namely nursing, childcare and education, with the first and foremost purpose to force the gender wage gap in Australia to narrow.

Regarding transparency and accountability, the WGEA is taking action to ensure gender equality and close the gender pay gap. Established in 1986, the WGEA uses data-driven strategies to create change. The agency utilizes four main strategies to address the gender wage gap and gender inequality as a whole.

These consist of helping employers fulfill reporting requirements under the Workplace Gender Equality Act 2012 and publishing lists of non-compliant organizations to push for change. In addition, the organization runs a Pay Equity Ambassador program so that leaders within businesses can influence and promote pay equity within the workplace. Furthermore, standout organizations receive an Employer of Choice for Gender Equality (EOCGE) citation award to recognize efforts to advance equality and encourage commitments to transformative change.

The ongoing efforts to bridge the gender wage gap in Australia, particularly those efforts learned from past experiences, promise a bright future in which women and men receive equal payment and treatment.

– Lan Nguyen
Photo: Unsplash

June 7, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-07 07:30:562024-05-30 22:26:02Gender Wage Gap in Australia
Developing Countries, Development, Global Poverty, Health

How the Floods in South Africa have Exacerbated the Housing Crisis

Exacerbated the Housing Crisis
Severe flooding has recently devastated the eastern coast of South Africa, namely the province of KwaZulu-Natal after heavy rains pounded the province starting on April 11, 2022, and lasting several days. More than 400 people died from the initial flooding in April alone. Heavy rains prompted more flooding over the weekend of May 22 and 23 pounding the region even more. Floods destroyed thousands of homes which has only exacerbated the housing crisis that had already existed in South Africa for decades. KwaZulu-Natal did not even have a chance to begin rebuilding before these most recent floods worsened the devastation. Relief efforts have begun again as hundreds of people are missing or possibly dead and tens of thousands have experienced displacement.

Heavy Rains

The eastern coast of South Africa is no stranger to floods and heavy rains during the Autumn and Spring seasons. A cut-off low-pressure system, which is not uncommon in South Africa this time of year, triggered these most recent floods. However, this intense low-pressure system produced an abnormally extensive level of rainfall in the region in April. There is a chance that the heaviest downpours took place between April 11 and 12 as some areas of KwaZulu-Natal witnessed more than 30 cm of rainfall. Scientists point to changing weather as a likely reason behind the increased severity of this low-pressure system, namely due to the rising temperature of the Indian Ocean leading to more moisture in the atmosphere over southeastern Africa. 

South Africa’s Housing Crisis

KwaZulu-Natal is among the poorer provinces in South Africa with the second-highest amount of people living in poverty behind only the Eastern Cape province. Equal access to safe housing in South Africa has long been an issue for the poor. The South African government claims it has attempted to address the nationwide problem that has plagued the country for decades, yet the recent floods have only further exacerbated the housing crisis. This crisis left a big impact on KwaZulu-Natal as it is home to Durban, one of the largest urban areas in the country.

Dating back to Apartheid the majority of the black population in South Africa did not have equal access to safe housing. As a result, many people had to build their own homes, often in less inhabitable areas outside of cities. These hand-built homes often resemble shacks or sheds as the owners built them out of whatever they could get their hands on. As the number of these homes grows in a certain area and begins to resemble a neighborhood, it becomes recognized as an informal settlement.

Unfortunately, the high death tolls and much of the devastation from these floods can relate to the high proportion of these informal settlements that house the country’s poorest. Estimates determined that 11.8% of South Africa’s population lives in informal settlements across the country. In KwaZulu-Natal, many of the informal settlements are located in valleys and thus are more prone to flooding which the hand-built homes don’t stand a chance against. Notably, April floods destroyed more than 4,000 homes alone with the majority being informal settlements which have only exacerbated the housing crisis. Include the fact that there are more than 40,000 who lost their home and an even more worrying picture appears. These people will need access to clean water, food and shelter.

Local authorities in KwaZulu-Natal, in response to the April floods, were already planning to set up 4,396 temporary accommodation sites for the displaced people, according to Reliefweb. After the more recent floods in May, the demand for temporary accommodations has continued to increase as there are even more displaced South Africans.

The Government’s Role

Not only did floods destroy local homes, but they also impacted the local infrastructure. Floods damaged a local water treatment facility in the town of Umdloti thus limiting the area’s access to clean water. Floods swept away many roadways and destroyed bridges making it difficult for transportation in the area among victims trying to escape as well as rescuers attempting to reach those in need. According to provincial Transportation and Community Safety MEC Peggy Nkonyeni, it will cost the government over R12.4 billion to restore the province’s road infrastructure alone. As the government focuses its rebuilding efforts on infrastructure, it would also be an opportune time to attend to the longstanding housing crisis that recent floods only exacerbated.

The government claims to have built approximately 2.7 million low-cost homes over the past 15 years, yet there are still an estimated 2 million South Africans on a list waiting for the home they were promised. Its temporary accommodation sites are necessary for the short term to help the displaced ones, but it is imperative that the government addresses the longstanding lack of affordable and safe housing. Although the past two months have been very difficult, South Africans can now look forward to the typically drier months of June and July as an opportunity to recover and rebuild.

– Devin Welsh
Photo: Flickr

June 7, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Jennifer Philipp https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Jennifer Philipp2022-06-07 07:30:132024-05-30 22:26:03How the Floods in South Africa have Exacerbated the Housing Crisis
Global Poverty

Sanctions on Russia Increase the Poverty Rate

Sanctions on Russia
Since Russia’s invasion of Ukraine in February 2022, many countries and entities have placed sanctions on Russia in support of Ukraine. Beginning on February 22, 2022, the United States began placing sanctions on Russia in order to increase pressure on the country to end the war in Ukraine.

Since the fall of the Soviet Union in 1991, U.S. businesses opened up firms in Russia. The economy improved, especially in recent years. In 2018, Russia’s poverty rate according to the national poverty line stood at 12.6%, and it reduced slightly to 12.1% in 2020. The World Bank projects “that the poverty rate under the US$5.5 poverty line will decrease to 3.5[%] in 2021.”

But, with the sanctions in place, Vladimir Putin’s former chief of economics, Andrei Illarionov, predicts that the poverty level in Russia will increase. In April 2022, Illarionov  said to the BBC, “We’ll probably see doubling on the number of those people, maybe even tripling.”

Companies Halting Business in Russia

In March 2022, U.S. companies like Coca-Cola and McDonald’s made decisions to temporarily stop business in Russia in response to increasing pressure on global companies to take a firm stance against Russia’s invasion of Ukraine.

Business activities in Russia equated to about 2% of Coca-Cola’s “operating income and revenue.” Similarly, Coca-Cola’s rival, Pepsi, which has a bigger presence in Russia, announced it will “stop production and sale of Pepsi,” but it will continue to produce and sell essential products like milk and baby food.

Along with Coca-Cola and Pepsi, Starbucks announced a decision to halt business activities in Russia and stop shipments of Starbucks products to Russia, but it will continue to pay its employees.

The Impact on the Russian Economy

In 2018, Putin put in place a goal to reduce the national poverty rate by 50% over the following six years. However, due to the detrimental consequences of the COVID-19 pandemic, in July 2020, Putin adjusted this target date to 2030.

However, recent events in Ukraine and the sanctions on Russia are expected to erase about 15 years of economic growth in Russia. The Institute for International Finance predicts that the Russian economy will plummet by about 15% in 2022.

Because of the sanctions on Russia, inflation in Russia could increase by 20% or more by the end of 2022. Meanwhile, inflation will increase between 5% and 8% in the West.

Impact on the Russian People

According to the World Bank, more than 17,000 Russian people live in poverty as of 2020. Due to the sanctions on Russia, the rate will only increase as more people lose their jobs. Illarionov explained to the BBC that it would be nearly impossible for Russia to look toward a positive future if the current situation continues.

Professor of economics and dean at the School of Business Administration at Cedarville University, Dr. Jeffrey Haymond, told The Borgen Project that “The sanctions in Russia will proportionally hurt Russia more than other countries, especially since Russia is a very unbalanced economy, producing very little outside of its expansive natural resources.”

Humanitarian Efforts

Chief Executive and Officer of Pepsi Ramon Laguarta told the BBC, “As a food and beverage company, now more than ever, we must stay true to the humanitarian aspect of our business. That means we have a responsibility to continue to offer our other products in Russia, including daily essentials such as milk and other dairy offerings, baby formula and baby food.”

Meanwhile, McDonald’s rival, Burger King, announced in March 2022 that it will keep its restaurants open in Russia. However, it allocated $3 million for the support of Ukrainian refugees, further stating that Ukrainian refugees in European nations can receive Whopper meal vouchers at no cost. Restaurant Brands International, the company that owns the Burger King brand, told the BBC that it would “redirect its profits from more than 800 franchised operations in Russia to humanitarian efforts.”

Despite the sanctions on Russia, brands like Pepsi and Burger King continue their humanitarian efforts to ensure that the Russian people do not suffer due to an invasion in which they play no part.

– Chris Karenbauer
Photo: Unsplash

June 7, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-07 01:30:472022-06-01 06:20:41Sanctions on Russia Increase the Poverty Rate
Global Poverty

Ghana’s Gold Purchasing To Counteract Devastating Inflation

Ghana's Gold Purchasing
On May 17, 2022, Ghana announced its new plan to counteract continuously increasing inflation rates by bulking up its gold reserves. Ghana’s government decided to begin purchasing gold domestically to maintain economic growth and flow by strengthening the currency’s backbone and slowing inflation rates.

Inflation and Currency Issues

Ghana’s overall inflation rate is at its highest since August 2009 and is likely to get worse before it gets better. The inflation rate has been increasing monthly for a year and peaked at 23.6% in April 2022. Food prices rose 26.6%, with other non-food-related prices inflating 21.3%, up an additional 4% from April 2022.

Ghana’s national currency, the cedi, exacerbates Ghana’s inflation issues. As Ghana is so heavily reliant on international operations, such as trade and imported goods, the country requires an excess of foreign currency in its reserves. During the COVID-19 pandemic, Ghana’s currency exchange rate remained steady, making the cedi stable. However, there has been a growing demand for international services and exchanged goods worldwide. Ghana has not been able to keep pace with the demand or generate enough foreign currency to not deplete most of the country’s reserves. Thus, Ghana’s currency is depreciating rapidly while the inflation rate continues to impact all its citizens. Therefore, Ghana’s government must find solutions before the poverty rate rises with other economic problems.

Ghana’s Gold Purchasing is a Necessity

Ghana is one of the leading countries in gold mining and exportation. It is the seventh-largest gold producer globally and has been nicknamed “Africa’s Gold Coast” for decades. With all the gold that Ghana produces, it is impressive that its reserves have gotten so low. Still, it is also detrimental to the health of the economy. The lack of gold reserves means Ghana’s gold purchasing program is necessary to build the economy back up and give the cedi strength. Any gold-producing country has its economy at its healthiest when gold prices are higher because the value of gold exports is higher.

In 2021, Ghana’s Vice President, Dr. Mahamudu Bawumia, stated, “But gold has become the cornerstone of central banks’ modern reserve management. Central banks have become the third force behind jewelry and technology and investment sectors in the global gold demand in the past decade.” Plans for Ghana’s gold purchasing began in 2021 but started in earnest in 2022 to back the cedi and bring life back to the economy as gold solidified its place in the Ghana economy.

No central bank can fake or split gold as quickly as other flat values or currencies, and its value cannot inflate unless the gold markets and prices do. As Ghana produces an immense amount of gold, buying the gold locally saves the government millions of dollars that they do not have in foreign or local currencies.

What Makes Ghana’s Gold Purchasing So Important?

Ghana’s lackluster currency and high inflation rates could bring devastation to all its citizens, making the lives of those in poverty that much more challenging. Ghana, which has a poverty rate of 11.3%, will likely see this rate worsen if the government cannot halt the inflation rate or stabilize the currency. Ghana’s gold purchasing program must take effect quickly enough to counteract the damages done to families at risk of losing their homes and livelihoods.

Inflation of prices hits poorer households harder and faster than it does the more well-off households and families. Lower-income households in developing countries, such as Ghana, spend almost 50% of their income on food alone. As the prices inflate, households with higher incomes can switch to lower-quality goods that the lower-income families are already purchasing. Lower-income households cannot spend their money on lower-quality goods.

Furthermore, a weakened currency makes exports and incoming goods more expensive, causing the prices to increase and driving those in poverty to spend more than they have. Ghana’s gold purchasing will give the economy a chance to revitalize by stopping rising prices and allowing households in poverty to not spend as much. Without the help of Ghana’s gold purchasing program, the poverty rates could soar again. Thankfully, the sooner Ghana implements the program, the sooner economic flow can continue at a healthy pace without inflation causing mayhem on families’ wallets and income.

– Clara Mulvihill
Photo: Flickr

June 7, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-07 01:30:252024-05-30 22:26:02Ghana’s Gold Purchasing To Counteract Devastating Inflation
Global Poverty, Human Trafficking

Human Trafficking in Guinea-Bissau

Human Trafficking in Guinea-Bissau
On a global scale, human trafficking impacts approximately 40.3 million people, as per a 2016 report from the International Labor Organization. It is a lucrative enterprise that has found a foothold, among other places in West Africa, in Guinea-Bissau. A staggering figure, more than 40% of the people living in Guinea-Bissau, are younger than the age of 15, according to statistics from 2019. Human trafficking in Guinea-Bissau exists in several ways including the transportation and indoctrination of male minors and the sexual exploitation of female minors. Regularly struck with political tumults and social unrest, the country’s populace faces a slew of safety concerns, many of them with roots in criminal activity, such as human trafficking, addictive substances and weapons.

Guinea-Bissau’s Government

The current government, headed by President Umaro Sissoco Embaló, has its hands full with various uprisings and insurrections. The most recent of these to make headlines occurred at the beginning of February 2022 when attackers made an assassination attempt on Embaló’s life. The coup takes place just shy of two years following his controversial inauguration.

Embaló himself is not exempt from accomodating criminals. Drug lord and rabble-rouser Antonio Indjai, for instance, made an appearance at Embaló’s inauguration. This came many years after Indjai’s illegal activity became the subject of international concern.

The persistence of narcoterrorism grew in recent decades, particularly concerning cocaine, as Latin American drug lords saw Guinea-Bissau as a quiet and lax stopover locale in their transport of goods to Europe. Though the drug trade is nothing to scoff at, it is an industry that is subject to trans-continental issues. Meanwhile, another kind of trafficking occurs in Guinea-Bissau on a regular basis and the perpetrators are in the country’s own backyard.

As in many other underdeveloped nations in the region, daily nutrition, general health and unsteady employment are ever-present concerns. Under such conditions, human trafficking in Guinea-Bissau has sprouted up. Boys, for example, often get roped into organized trafficking where they spend their time engaged in begging or other forms of forced labor.

The Different Kinds of Human Trafficking

Religion, which (along with ethnic varieties) affects national politics, also has a bearing on human trafficking in Guinea-Bissau. While approximately a fifth of the country’s population adheres to Christianity, about two-fifths of the country follow Islam. Traffickers often move some Muslim children stealthily and under the cover of night to the neighboring country of Senegal.

Subsequently, traffickers push children into money-making strategies under the guise of religious, Koranic-based education. In these situations, the children are called talibés and the schools are referred to as daaras. According to marabouts, begging is part of the daara curriculum.

The world of trafficking looks different for girls, who often face exposure to sexual exploitation. Otherwise, like many boys, they too must endure forced labor. A number of Guinea-Bissau’s government officials are accused of remaining complicit in human trafficking crimes, such as sex tourism programs operated in the Bijagós islands, just as some officials have been accused of comradery with those involved in the drug trade.

Taking Action Against Human Trafficking

Guinea-Bissau successfully passed an anti-trafficking law in 2011. However, since then, the country has done little to effectively enforce its ramifications. According to the 2020 Trafficking in Persons Report from the U.S. Department of State, the government should seek to multiply and bolster further resources for the Judicial Police and expand much-needed enforcement to places like the Bijagós.

And, according to the 2021 TIP report, Guinea-Bissau, which had maintained a Tier 2 status for several years,  backslid into Tier 3, designated for countries that do not meet the bare “minimum standards for the elimination of trafficking.”

The citizens of Guinea-Bissau could benefit from better law enforcement. Guinea-Bissau is taking some measures for improvement. The establishment of the West African Police Information System (WAPIS) in 2015 and its ongoing endeavors to integrate police data systems affiliated with INTERPOL have the potential to aid criminal investigations. WAPIS, implemented by INTERPOL, receives funding from the European Union and “political and strategic support” from the Economic Community of West African States (ECOWAS). One of the countries benefiting from the program is Guinea-Bissau. Added national police measures could help crack down on human trafficking.

Local organizations like the Association of the Friends of Children (Associação dos Amigos da Criança or AMIC) and SOS Talibé Children (SOS Crianças Talibés) serve as beacons of hope. These organizations support children displaced and harmed by human trafficking in Guinea-Bissau and also advocate for policy decisions geared toward combating the destructive trade. With financial aid from the European Union, the AMIC has rescued more than 1,600 children since 2005.

With help from charity organizations and stronger law enforcement, Guinea-Bissau can better address its human trafficking epidemic.

– John Tuttle
Photo: Flickr

June 6, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-06 07:30:502024-05-30 22:26:02Human Trafficking in Guinea-Bissau
Children, Development, Global Poverty, Human Trafficking, Humanitarian Aid

Reducing Human Trafficking in Ireland

Human Trafficking in Ireland
Human trafficking in Ireland is higher than the official statistics report. In fact, Ireland stands as a Tier 2 Watch List country for a second year in relation to efforts to eliminate human trafficking, according to the U.S. Department of State. The U.S. Department of State compiles annual Trafficking in Persons Reports that rank governments in their efforts to end human trafficking.

The Tier 2 Watchlist country ranking means the government is not meeting the minimum standards of the Trafficking Victims Protection Act of 2000 (TVPA) but is actively working to meet those standards. The TVPA establishes “methods of prosecuting traffickers, preventing human trafficking and protecting victims and survivors of trafficking.”

Why is Ireland a Tier 2 Watch List Country?

The Ireland government has made many efforts to align with the TVPA, such as “designating an independent human trafficking national rapporteur and establishing a formal national anti-trafficking forum” and starting a “national anti-trafficking public awareness campaign.” The Irish government has also extended monetary support for victim assistance, awareness efforts and anti-trafficking training.

Despite these efforts, Ireland did not demonstrate an overall increase in growth from the previous 2020 Trafficking in Persons Report (TIP). The government continued to struggle with victim identification and assistance and lacked support services for victims. The 2021 TIP Report specifies that the Irish government “investigated and prosecuted fewer suspected traffickers, did not prosecute any labor traffickers and victim identification decreased for the fourth year in a row.”

Ireland’s Response to the 2021 TIP Report

“While there have been some positive efforts, including the appointment of the Commission as rapporteur, and in recent weeks, the first trafficking conviction since 2013, the reality today is that Ireland continues to fall below minimum standards compared to other developed nations,” Chief Commissioner of the Irish Human Rights and Equality Commission Sinéad Gibney said in July 2021.

“It was very disappointing that the U.S. State Department did not acknowledge the significant progress made by Ireland over the past 12 months as sufficient to upgrade our ranking in the latest Trafficking in Persons Report, I am confident that the work we are doing should be reflected in the next TIP Report and that Ireland’s ranking should be upgraded accordingly,” Minister of State at the Department of Justice Hildegarde Naughton said in a September 2021 parliamentary discussion.

Is Human Trafficking in Ireland Improving?

From 2017 to 2019, Ireland detected 181 trafficking victims, while from 2019 to 2021, Ireland detected 124 victims, which equals about a 30% decrease. This decrease may link to the global COVID-19 travel restrictions.

The 2021 TIP Report said that authorities identified 38 victims in 2020, the lowest number of identified victims since 2013.

Overall, human trafficking in Ireland is reducing according to the numbers, but the 2021 TIP Report says that there are even more victims than official statistics say and does not provide conclusive insight as to why. The 2021 TIP Report stated that an “independent and comprehensive 2021 study found that from 2014-2019, the true number of trafficking victims was approximately 38[%] higher than the official national statistics.”

The 2021 TIP Report does indicate that traffickers traffic victims from other regions such as Africa, Asia, Eastern Europe and South America, and recently, countries including Brazil, Indonesia, Nigeria, Pakistan and Romania.

Organizations Working to End Human Trafficking in Ireland

Ruhama is an Irish non-governmental organization that emerged in 1989 to provide “support to women impacted by prostitution, sex trafficking and other forms of commercial sexual exploitation.” Ruhama offers free services that differ depending on each woman’s circumstances and experiences, including a care plan, counseling and therapy, education and development programs, legal support, housing support, health and wellness support and more. In 2021, Ruhama helped 369 women, with 136 women victims of sex trafficking.

Doras is an anti-trafficking organization that has been helping those affected by human trafficking in Mid-West Ireland since 2011. Its priorities in anti-trafficking advocacy include rehabilitation programs for victims, improved identification and assisting of victims, “increased penalties and custodial sentences” for those benefiting from prostitution, “safe and appropriate gender-specific accommodation” for survivors and more.

As of now, the total victim count for human trafficking in Ireland is decreasing and the government and other organizations are continuing to accelerate efforts to reduce the prevalence of human trafficking in Ireland, prevent it and educate on it, while helping survivors, and identifying victims and accurately reporting information.

– Dylan Olive
Photo: Flickr

June 6, 2022
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2022-06-06 07:30:442024-05-30 22:26:02Reducing Human Trafficking in Ireland
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