Archive for category: Global Poverty

Key articles and information on global poverty.

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Child Soldiers in Yemen Receive Humanitarian Aid

Child Soldiers in YemenHuman rights groups are addressing the issue of child soldiers in Yemen. Houthi groups reportedly recruited and trained children for war beginning in 2014. Since then, hundreds of child soldiers in Yemen have died or experienced injuries.

Houthi Modus Operandi

Houthi groups utilize school and other educational facilities to train and recruit children as soldiers. Lectures at these facilities emphasize violence and Houthi ideology. Their purpose is to compel the children to join their fight and adopt Houthi ideas as their own. Once recruited, authorities assign the children various tasks, ranging from guard duty to direct armed conflict. Those who do not perform well or attempt to defy the Houthi face various forms of punishment including beatings, food deprivation and even sexual assault.

Protests from Concerned Groups

Humanitarian groups such as the Euro-Mediterranean Human Rights Monitor and the SAM for Rights and Liberties denounced the Houthi child recruitment drive and called on the Houthi to cease it. The groups argue that the very act of conscripting child soldiers in Yemen violates the International Criminal Court’s Rome Statute that forbids this war crime. They urge the United Nations Security Council to refer the Houthi’s actions to the International Criminal Court. The humanitarian groups want a U.N. special representative to visit Yemen and further assess the situation.

The CRUCSY Program

In September 2018, the special United Nations agency known as the International Labor Organization (ILO) initiated a program known as Countering the Recruitment and Use of Child Soldiers in Yemen (CRUCSY). The ILO developed this program in conjunction with the United States Department of State.

The CRUCSY program has multiple aims. It strives to provide a solution to the immediate problem of child soldiers in Yemen by addressing its underlying root causes. Furthermore, it hopes to prevent this situation from reoccurring. The program helps reintegrate child victims back into Yemen’s various governorates so that children can lead more stable and peaceful lives. The ILO also set up training facilities and services for the children. Additionally, the ILO teaches the older, legal-aged children marketable vocational skills to help them find employment.

As of February 21, 2021, the ILO CRUCSY program created three youth-friendly reintegration spaces and four youth clubs. Moreover, the program coordinated with local communities to provide training guides for community leaders. Lastly, the program has been offering counseling, support and vocational skills training for child soldiers in Yemen.

UN Action

The United Nations has also made progress in helping child soldiers in Yemen and rehabilitating them. From 2014 to 2020, the Office of the Special Representative of the United Nations Secretary-General for Children and Armed Conflict (SRSG CAAC) communicated and coordinated with the Yemeni government. It also helped various humanitarian coalitions and the Houthis address the issue of child soldier recruitment.

In addition, the SRSG CAAC implemented action plans to establish child protection units, end violations against international laws protecting children and prevent violations altogether. The office’s efforts led to the signing of a handover protocol in April 2020, resulting in the release of 68 child soldiers in Yemen. As of March and May 2021, child protection workshops and training efforts have continued.

– Jared Faircloth
Photo: Flickr

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Expanding Internet Access in the DRC

Expanding Internet Access in the DRCIn today’s digital age, the internet is a norm in many people’s lives, as nearly 4.66 billion active internet users exist worldwide. People use the internet for communication, research, gaming and e-commerce. Yet, most citizens of the Democratic Republic of the Congo (DRC) have no access whatsoever to the internet. Only about 20 million people out of 100 million people living in the DRC have access to the internet. However, changes are occurring in the DRC. Nearly 9 million people in the last few years have gained access to the internet due to technology companies investing in the development of the internet in the DRC. Likewise, Liquid Intelligent Technologies (LIT) and Facebook are partnering to build a massive fiber network in the DRC. Here is some information about how they are expanding internet access in the DRC.

How LIT is Expanding Internet Access in the DRC

Liquid Intelligent Technologies plans on building a 2,000-kilometer-long fiber-optic cable network from the DRC to the Atlantic Ocean. From there, it will connect with the 2Africa submarine cable system, which Facebook has a major role in developing.

On completion, the undersea cable network will better connect the DRC to Europe and the Middle East. It will help complete LIT’s two-year-long project to build a vast digital pathway from the Atlantic Ocean connecting to East Africa and the Indian Ocean, where millions of people would gain access to the internet. In addition, it will bridge the democratic republic with its neighboring countries of Tanzania, Rwanda, Uganda and Zambia.

Facebook has invested in this operation and helped plan the fiber network, but LIT will be the company to build and own the fibre network. It also plans to provide internet service providers and services to network operators to take advantage of the fibre network. Thus, the company estimates that nearly 30 million people in the DRC will gain access to the internet.

However, the effort that is necessary will not be easy. “This is one of the most difficult fibre builds ever undertaken, crossing more than 2,000 km of some of the most challenging terrain in the world,” said Nic Rudnick, CEO of Liquid Intelligent Technologies. To help build the network, LIT will hire nearly 5,000 locals from communities in the Congo, employing many people and families in the DRC.

Why Internet Access in the Congo is Nonexistent

Government policies on censorship and high Wi-Fi costs ensure that the Congolese have no access to the internet. The government passed a censorship policy in 2002, called law No. 013/2002, which has the power to control telecommunications in the DRC. It grants the government the power to control telecommunications to defend the public or in the interest of national security. If telecommunication companies don’t comply with this law, they risk getting their operating licenses terminated. This forces many ISPs to shut off the internet.

Due to manipulation of this law, the Democratic Republic of Congo has cut off the internet, text-messaging services and social media services multiple times such as Facebook, YouTube and WhatsApp to stifle civil and peaceful protests occurring in the country. In addition, the country is suffering economically as it is losing $2 million every day due to the termination of internet services.

Buying one gigabyte of mobile broadband data in the DRC costs a staggering 26% of monthly income. This makes the DRC the most expensive country to get access to the internet in the world because there are no rules regulating caps on internet prices. Additionally, customers bear the burden of high taxes on telecommunication companies. These reasons allow telecommunication companies to raise prices to an extreme.

Companies like Liquid Intelligent Technologies are expanding internet access in the DRC. However, the government will need to make changes in censorship policies on the internet, to ensure every Congolese can experience the joys of the internet.

– Matthew Port Louis
Photo: Flickr

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The Impact of COVID-19 on Poverty in Bulgaria

Impact of COVID-19 on Poverty in BulgariaThe impact of COVID-19 globally is undeniable. From Canada to Ukraine, every nation is fighting the virus. Bulgaria is facing a similar battle against the COVID-19 pandemic and poverty. Organizations are fighting to keep both under control while implementing solutions to address the impact of COVID-19 on poverty in Bulgaria and around the world.

The Fight Against COVID-19

Bulgaria’s first COVID-19 case occurred on May 8, 2020, which was later than many of its neighbors. The Bulgarian parliament quickly went into a state of emergency on May 13, 2020, due partially to the weak healthcare system. Discussions about how to balance the economy and COVID-19 precautions soon started. Despite the government’s best efforts, the impact of COVID-19 on poverty in Bulgaria was significant.

The Past Against the Present

Bulgaria’s past has contributed to its present state. Bulgaria became its own independent country in 1908, with the occurrence of World War I six years later. The defeat of Bulgaria in World War I saw the loss of 100,000 people. Twenty years afterward, World War II started, resulting in an eventual Soviet invasion. Communism ruled for the next five years.

These events led to economic unrest for several years. Bulgarians boycotted and protested the crisis several times throughout the years, most recently in 2013. The first protests led to Bulgaria joining the European Union but the transition was rough on living standards. Structural reforms in the late 1990s led to faster growth and better living for Bulgarians, with some economic issues in 2008, 2013 and 2014, despite overall improvement. The impact of COVID-19 on Bulgarian poverty has many experts concerned about a possible relapse into economic decline.

The Virus Against the Economy

The negative impact of COVID-19 on poverty in Bulgaria began when the country’s economy was doing well. COVID-19 dragged the economy into a recession throughout 2020 and 2021. As a result, poverty in Bulgaria in 2021 could increase before it declines. Job losses and poverty have hit young people especially hard. Bulgaria will take time to recover from the economic shock of COVID-19, according to many experts. Alongside high productivity, experts have emphasized several components that Bulgaria must prioritize for its economic recovery:

  • Optimal use of EU money
  • Reopening of businesses
  • Reducing crime rates
  • More job prospects
  • More educational opportunities

Solutions in the Present

Bulgaria’s long-term recovery will take years, but organizations are currently attempting to lessen the impact of COVID-19 on Bulgarian poverty. SOS Children’s Villages prioritizes the well-being of young people who have suffered the most from poverty in Bulgaria.

SOS Children’s Villages dedicates itself to helping lift children and teenagers out of poverty all over the world. The organization has two bases in Bulgaria — the cities of Sofia and Trjavna. Its focus is on strengthening families, improving care in families and providing support for young people. The organization also promotes advocacy and improves emergency programs for unaccompanied refugee children. Reducing the child poverty rate is the overall goal of SOS Children’s Villages in Bulgaria.

Despite the significant impact of COVID-19 on poverty in Bulgaria, organizations like SOS Children’s Villages are providing substantial aid. With the continued commitment of organizations, poverty in Bulgaria will reduce and Bulgaria will find its way to economic recovery,

– Audrey Burran
Photo: Flickr

Gaming For a Cause: Poverty-Based Simulation Games Raise Awareness

Gaming For a Cause, Poverty-Based Simulation Games Raise AwarenessSimulation-based games have introduced a new realm of possibilities for video game creators, from surgeon simulators to first-person shooting programs. Some creators have decided to use this trend to garner empathy and attention for the important issue of global poverty. Despite 10% of the world living in extreme poverty, sympathy can be difficult for some to experience when they are not aware of the circumstances those living in extreme poverty face day-to-day. As such, simulation games are key to raising awareness and catalyzing change. Some creators have begun to take on the gut-wrenching task of creating poverty-based simulation games meant to simulate the experience of living in extreme poverty.

SPENT

“It’s just stuff. Until you don’t have it.” The ominous slogan on the beginning page of SPENT perfectly encapsulates the accidental ungratefulness that so many people who live comfortably feel. SPENT spotlights this luckiness for being able to go to a healthcare clinic or afford the rent by forcing players to experience extreme poverty. SPENT gives players $1,000 and 30 days to survive while making necessary purchases such as healthcare and rent. Although this sounds simple, it is anything but. Players must turn down concerts, miss bill deadlines and rely on friends for money. This sheds light on the physical and emotional toll that poverty has on people and how necessary donations are to their well-being.

This poverty-based game was a partnership project between McKinney Advertising Agencies and the Urban Ministries of Durham. SPENT has been played more than four million times in more than 218 countries. At the end of the game, a pop-up reminds players that the hardships they faced in the game are a reality for millions, prompting them to donate through the site. In its first 10 months, SPENT raised $45,000 from 25,000 new donors.

Survive125

Survive125 is a poverty-based game centered around an impoverished woman, Divya Patel, who lives in India with her four children and a daily salary of $1.25. Players control her life by making impossible decisions such as, “Should you send your teenage daughter to work at a factory (whose potential employer might be a sex trafficker) in order to earn more money?” or, “Should you pull your son out of school every three days in order to get the nearest clean water, which is four hours away?”

Millions of people living in extreme poverty face these questions every day. Each time players answer a question, they lose or gain money and points. The goal is to survive 30 days without running out of money or points. Live 58, a nonprofit organization working to end global poverty, developed this simulation. Live 58 is comprised of 10 charities that work to end global poverty by raising awareness through projects such as the game Survive125. While Survive125 doesn’t have a donation component or statistics, it is making an impact by raising awareness and giving people the opportunity to walk a mile in Divya Patel’s shoes.

This War of Mine

This War of Mine may be a war game, but it starkly differs from its counterparts in one main aspect: the perspective. While most war games such as Call of Duty focus on a heavily militant and violent storyline from the point of view of a soldier, This War of Mine revolves around impoverished civilians in war-torn countries fighting to survive. This poverty-based game simulates an all too common situation in which war impacts innocent children and citizens. Characters search for food, shelter, medical help and safety from bombs, introducing a new angle not seen in war games.

Another interesting take in this game is the idea of mood as a surviving factor; if a character becomes depressed, their work slows, and they suffer negative effects. This factor of depression is prominent in stressful environments such as in a country impacted by war but is often overlooked in mental health care.

Along with raising awareness, the creators of the game, 11 Bit Studios, partnered with War Child, a British organization that helps children in areas of conflict, to raise donations. Through this partnership, they created downloadable content by utilizing the art of graffiti artists who created war-themed artwork. All of the proceeds from the third of these poverty-based simulation games went directly to War Child, ultimately adding up to $500,000 as of 2018. The donation went toward war-torn countries, including Afghanistan, Iraq and Yemen. The proceeds support different projects, notably temporary learning centers, a child helpline and a division of War Child that works specifically with gamers.

Fighting to End Extreme Poverty

In a world where technology replaces human connection, games that remind people of empathy can bridge the gap created by a technological world. New methods, like poverty-based simulation games, appeal to large demographics and rekindle the spirit of generosity in a unique way.

– Mariam Abaza
Photo: Flickr

Improving Mongolia’s Childbirth Practices

Mongolia's Childbirth PracticesIn recent years, the nomadic population of Mongolia has seen negative impacts from environmental changes. Extreme winters have killed off much of their livestock, resulting in widespread food insecurity. As younger generations become less interested in agricultural jobs, fewer opportunities lie in the rural region of Mongolia. Due to these factors, healthcare accessibility has become limited. Healthcare has affected Mongolia’s childbirth practices significantly. However, improvements in healthcare are on the horizon for Mongolia’s people. In recent years, Rotary Club member Julie Dockrill has trained mothers and healthcare providers in Mongolia, improving education regarding childbirth. Dockrill’s work is critical for women living without access to hospitals. With progress such as Dockrill’s education initiative, maternal and infant mortality rates are beginning to decrease.

Poverty in Mongolia

Mongolia has made significant economic and social improvements over the past few decades. Since 1991, its GDP tripled and the maternal death rate decreased by 87%. Poverty reduction rates vary widely across the country, with rural areas seeing the greatest change. From 2016 to 2018, poverty declined by 5%, whereas urban areas remained unchanged. This is due to increased prices for livestock and no wage growth in urban areas. Cities have also faced heavy air pollution and tripled rates of respiratory illnesses over the last 10 years.

Additionally, COVID-19 has posed a major risk for Mongolian citizens. Overall, the pandemic caused the economy to shrink by 7%. Other factors that worsen poverty are extreme weather conditions, lack of sanitation and food insecurity. With a small population of 3 million, those living as nomads face great difficulty accessing healthcare and other services.

The History of Mongolian Nomads

Nomadic herders make up 25% of the Mongolian population. Nomads live in traditional Mongolian housing districts called gers — portable round tents. These gers exist all over the plains and mountains of Mongolia. However, environmental challenges have hit these gers harshly. The average temperature since 1940 has risen 2.2 degrees Celsius, which is significantly greater than the world average temperature change of 0.85 degrees Celsius. There is also less rain, making ponds and rivers dry up. Herds of livestock and horses have a difficult time finding water and cooling off in the warmer months, because of their thick fur that keeps them warm in -40 degree Celsius winters. Consequently, cities draw young adults away from nomadic life, with easier access to healthcare and education.

Mongolia’s Childbirth Practices

In rural areas, limited access to hospitals and doctors makes childbirth risky. In 1995, the U.S. State Department sponsored a medical team from Tripler Army Medical Center to a hospital in Mongolia for training. They observed dim lighting, physicians reusing gloves and aprons between patients, limited supplies of IV fluids and use of anesthesia without proper safety checks. There was also almost no equipment for natal care and mothers after giving birth.

As a result, many women in the 1990s gave birth at home, which had the potential to be traumatizing if they had a difficult labor. Since then, there have been significant improvements in Mongolia’s childbirth practices. The Mongolian government began reform movements that opened maternity waiting homes across the country. Expecting mothers from nomadic areas can visit these facilities if their pregnancy is high-risk. This way, women can be closer to hospitals in case of an emergency. It is now standard for healthcare providers to encourage women to visit one of the prenatal clinics two weeks before their due date. Online information and telehealth also provide access to reproductive health information. Success is evident. From 1990 to 2019, infant mortality rates have decreased from 77 per 1,000 births to 13.4 deaths.

The Rotary Club’s Work

Julie Dockrill is a midwife and childbirth educator from New Zealand. In 2013, the Rotary Club of Waimate asked if she could join them in a project training medical workers to improve childbirth practices in Mongolia. A major thing she noticed was that mothers only received basic care information. Thus, Dockrill held training classes for pregnant women using baby dolls and anatomical models, expanding on the knowledge displayed in traditional pamphlets.

In Mongolia, people often treat labor as a quick process, which can lead to complications. Dockrill explained to her training class that medical professionals should not rush labor and that they should treat the procedure with care. The class led to immense success, influencing the Rotary team and Dockrill to continue through 2015 and 2016. Additional phases of the project included a Mongolian midwife shadowing Dockrill in New Zealand, training over 300 healthcare workers in Mongolia and bringing medical supplies.

In 2018, the team returned to Mongolia to provide healthcare and education to rural communities. Dockrill also wrote an updated training manual that covered immunizations, pain relief, diet and doctoral instructions. As a result, the Mongolian Ministry of Health endorsed and adopted the manual. In 2019, Nepal adopted the text as well. Mothers must now take childbirth education classes and receive more advanced resources for childbirth services.

The Future for Mongolia

Mongolia’s reduction of maternal and infant mortality rates over the last 30 years has led to decreased poverty rates in the country. One of the major steps to reducing poverty currently in place is focusing on the rural communities of Mongolia. Access to healthcare is one of the main ways to improve Mongolia’s childbirth practices. With progress like Dockrill’s work and the Tripler Army Medical Center, further progress in eliminating poverty is clearly in motion.

– Madeleine Proffer
Photo: Flickr

The Big Ten’s Initiatives Against Global Poverty

Big Ten’s initiatives against global povertyThe Big Ten Conference is joining the war against global poverty. The Big Ten’s member institutions are prominent universities known for Division 1 collegiate athletics and competitive academics. Now, the students and staff of these institutions are joining and creating projects to combat international inequality. The Big Ten’s initiatives against global poverty simultaneously educate young participants and help impoverished communities.

10 of the Big Ten’s Initiatives Against Poverty

  1. University of Illinois: Poverty Simulation — The Missouri Community Action Network Poverty Simulation is designed to educate students on the lives of low-income individuals and populations. During the simulation, volunteers receive roles where they must manage day-to-day family and community operations within strict resource constraints. The simulation is meant “to be a tool to re-frame issues of poverty and to inspire participants to take action.”
  2. University of Indiana: Trockman Microfinance Initiative — The Trockman Microfinance Initiative (TMI), which the Kelley School of Business sponsored, uses microfinance to benefit international impoverished communities. TMI encourages students to use their business and networking skills to help those who experience exclusion from the mainstream financial system through research and hands-on fieldwork. Recently, TMI partnered with the international nonprofit Flying Squirrel Outfitters to empower at-risk women in rural Thailand. The two organizations are working together to create jobs and implement sources of sustainable financing.
  3. University of Minnesota: U.N. Sustainable Development Goals (SDGs) — In support of the United Nations Sustainable Development Goals (SDGs), the UMN SDG Initiative utilizes research and university assets across 17 categories to advance sustainability initiatives, especially in the education sector. For example, in 2021, the university signed a $4 million contract to improve higher education health sciences programs in Afghanistan. The program also offers grants to support student and staff research that aligns with SDG projects. Among the Big Ten’s initiatives against global poverty, the University of Minnesota is the only school partnering with the U.N.
  4. University of Nebraska: Robert B. Daugherty Water for Food Global Institute — Nebraska’s success in agriculture has made it a fitting home for the Robert B. Daugherty Water for Food Global Institute (DWFI). Working with more than 170 partners, the institute promotes global food security through research, development and communication. In 2021, DWFI will host a conference where participants will discuss the future of global water and food security goals.
  5. University of Michigan: Michigan Foreign Policy Council — Teaching empirical social science writing processes, the Michigan Foreign Policy Council is a project-based, student-run organization that publishes non-partisan research. Five main categories allow for a broad range of topics and student individuality. Furthermore, finished articles are open to public viewing at a semesterly symposium and through online formats.
  6. Michigan State University: The Spartan Global Development Fund — MSU’s Spartan Global Development Fund (SGDF) teaches the benefits of microfinance to impoverished global communities, specifically in Guatemala and Nicaragua. Uniting students, alumni and professors, SGDF has donated more than $114,000 in the last 12 years directly to humanitarian nonprofits. Fieldwork and a student-run blog also enhance the versatility of the fund and its ability to aid communities abroad. Detailed profiles of the fund’s beneficiaries are available on its website.
  7. Northwestern University: Global Poverty Research Lab — The Kellogg School of Management sponsors Northwestern’s Global Poverty Research Lab. This initiative has hands-on projects in countries across the globe to understand the causes and consequences of global poverty. The lab addresses research in four key geographical and sector-based clusters: China, the Philippines, Ghana and research methods. Overall, the lab works to create a pipeline between development economics and effective policy action. Participants connect with policymakers and multilateral agencies to ensure engagement and accuracy in the research process. Opportunities to participate are available to both students and faculty interested in providing research support and participating in fieldwork.
  8. Ohio State University: Global Outreach at OSU — Once GlobeMed at OSU, Global Outreach at OSU has adapted to focus on health, education and equity-based projects in one community per semester. This past semester, the club focused on education inequities and donated to the Meherun Nessa Development Foundation, a fundraising platform dedicated to educating children in Bangladesh. The club also runs a blog for its members to contribute to, with its most recent publication centering around COVID-19’s impact on global food insecurity.
  9. Pennsylvania State University: International Food Safety Initiative — The International Food Safety Initiative at Penn State College of Agriculture Sciences manages projects that educate communities on properly handling, storing and preparing food. Partnering primarily with the USDA, the initiative works with 12 communities across four continents. Most of its projects are study abroad options open to undergraduate students at the university. The projects teach students to evaluate the impact of training on participants’ food safety knowledge and skills.
  10. Purdue University: Engineers Without Borders — Engineers Without Borders (EWB) at Purdue is a student chapter of the nonprofit organization Engineers Without Borders-U.S.A. EWB aims to improve livelihoods in the global communities it focuses on and develop project management skills in its members. The program offers five different focuses in order to draw interested participants from all spheres. EWB began its Bolivia Project in 2018, providing clean water and meeting other daily needs by creating a water distribution system in Colquechata, Bolivia. Data collection, analysis and fieldwork also contributed to the success of EWB assignments in Nakyeni, Uganda.

Moving Forward

The Big Ten’s initiatives against global poverty raise awareness of conditions in impoverished communities through research and regional policy mobilization. Prospective students, current affiliates and interested locals alike can donate and participate in each school’s studies.

– Julia Fadanelli
Photo: Flickr

Tackling Elderly Poverty in Belarus through Pensions

Elderly Poverty in Belarus
As it spends around $5 billion yearly on pensions, Belarus, a landlocked country in Eastern Europe, has seen a significant reduction in elderly poverty in the past two decades. Experts estimate at least a 25% reduction in elderly poverty in Belarus since 2002. Pension programs in Belarus contribute to lower rates of elderly poverty in the country.

Pension Programs in Belarus

Belarus has various social pension programs, including veteran and survivor pensions. However, the program with the most recipients is the old-age pension. The direct transfer of wealth through the old-age pension began in 1990, with men 60 and older and women 55 and older becoming eligible for pensions. The average pension is $150 per month. If the elder served in a war, has a disability, has more than five children or earned an above-average income, the elder must meet fewer qualifying conditions, but will still receive no more than around $300 a month.

In 2019, 5% of the Belarusian population lived under the poverty line. Elders, or people 50 and older, represent 20% of Belarusians and are roughly 3% less likely to fall into poverty than the general population. Elders remain vulnerable to falling into poverty, and many continue working past retirement age. Nonetheless, Belarus has achieved overall success in combating elderly poverty in recent decades.

Economic Growth Despite the Financial Crisis of 2009

During the years leading up to the 2009 financial crisis, Belarus began outperforming the Europe and Central Asia (ECA) region in terms of the $5/day poverty metric. In 2001, Belarus’s $5/day poverty rate was roughly the same as the ECA average. However, by 2009, Belarus had a significantly lower $5/day poverty rate than the ECA average.

Furthermore, between 2006 and 2011, Belarus’s rate of growth of expenditures in the bottom 40% of the population was 9% per year, the highest rate in Europe. Most European countries registered negative expenditure for the bottom 40% of incomes as they were recovering from the financial crisis. Belarus’ superior economic growth resulted largely from favorable energy pricing from its neighbor Russia and the resulting strong trade relations between the two countries.

Strong, reliable economic growth led to the expansion of sectors such as manufacturing and agriculture and enabled high levels of employment. Manufacturing and agriculture exports increased by 85% and 90% respectively from 2001 to 2008, with average wages increasing 10%. Therefore, the state budget grew and the funds set aside for pensions grew as well. Growing sectors offered increased employment opportunities for capable elders. As pensions and employment rose, elderly poverty dropped.

Growth in Both Urban and Rural Areas

From 2003 to 2008, the majority of elderly poverty reduction in Belarus occurred in urban areas such as the capital city, Minsk. However, from 2008 to 2015, the greatest change occurred in rural areas, which saw a 75% reduction in poverty between 2003 and 2014 while poverty decreased by 54% in cities.

Rising Demand for Pensions

With the country’s economy on a positive trajectory for more than two decades and the poverty rate falling, the average elder in Belarus receives a $150 monthly pension. In addition, increased exports spurred growth in agriculture and manufacturing, which provided job opportunities for elders seeking to increase their income during retirement. While the country is currently recovering from the 2014 recession, strong growth must persist in order to maintain low rates of elderly poverty as Belarus’ population is aging and the demand for pensions will continue to rise.

– Max Sidorovitch
Photo: Unsplash

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Experimenting With Impact Bonds Continues

Experimenting With Impact Bonds CMore than 10 years into the impact bond experiment, pandemic conditions have tested the financial tool’s effectiveness and sustainability. In the course of these trials, the market managed to expand and produce new case studies. It is no longer just the developed world experimenting with impact bonds.

“Ambiguous” Impact Bonds

Impact bonds, also known as social impact bonds, development impact bonds or pay-for-success projects, are a relatively recent financing tool for implementing public works, introduced in 2010 in the U.K. The basic premise is that private investors (for-profit or philanthropic) front the costs for public programs, receiving returns on investments from their government partners if programs meet performance targets.

These bonds are at times lauded as a “win-win” solution for policymakers and investors; a government protects itself from the cost of failed programs while private entities have the opportunity to profit from investments. Supporters also hold that impact bonds foster innovation and cooperation in tackling pervasive social issues. There can be a great deal of experimenting with impact bonds.

Detractors raise concerns about technical complexities posing a barrier to implementing these bonds and the associated programs. It can be difficult to find trustworthy investors with aligned interests. There also are more general concerns about ethics, accountability and transparency in these programs. These concerns apply both to government institutions and investors. Inviting private enterprises into public works might mean giving investors more control of public policy.

Impact bonds remain “ambiguous” with neither side being proved right or wrong. It is difficult to disprove either side and, because of a lack of control studies, it remains undetermined whether impact bonds themselves contribute to a program’s success. Impact bonds and research around them are relatively young, with only a small market to examine.

The Developing Market

The existing market still offers valuable insight. The Brookings Institution reported that there were 214 active impact bonds in 35 countries as of June 2021. These bonds became concentrated in developed countries like the U.S. and U.K. However, developing countries such as India and South Africa began experimenting with impact bonds as well.

Of 49 completed bonds globally as of July 2020, Brookings found that only two failed to meet performance targets and did not lead to repayment to investors. Of those that yielded returns in addition to repayment, the average return was $2.5 million. On the surface, this indicates that impact bonds are successful, but further study is still necessary.

In addition to the Brookings report, a study identified the number of impact bonds launched in different areas of intervention as of August 2020. Fifty-one bonds, the greatest number in any area, were launched in the employment and training sector. There were comparatively fewer bonds launched in the family welfare, health and homelessness sectors — around 30 to 33 each.

Twenty-seven bonds were due to be launched in the education and early childhood development sectors in 2020. These new programs all deferred start dates due to the pandemic. However, pre-existing bonds in both these areas were active throughout the pandemic.

Impact in the Developing World

The Quality Education India Development Impact Bond fared well in 2020, meeting targets and improving literacy and numeracy outcomes for more than 200,000 primary school students halfway through its contracted duration. The program was initiated in 2018 to meet the needs of marginalized students. As of 2018, only 74.4% of Indians were literate and most of them were men from urban areas. Girls in rural areas were the most disadvantaged in accessing education.

Two South African bonds ended in 2020. Bonds4Jobs was initiated in 2018 with the aim of helping unemployed youth find positions via training and more effective “job-matching” services. The unemployment rate in South Africa is staggeringly high, sitting at more than 30% at the end of 2020. Though the program ended early due to the pandemic’s negative economic impact, it successfully met its targets in its first year and nearly met its 2020 targets before shutdowns began. The bond delivered 7-11% returns to investors in addition to full repayment.

The other South African investment, the Impact Bond Innovation Fund, ended its program in November 2020 as planned. The program “provided home-based early learning services to preschool-aged children in two impoverished communities in the Cape Metro area: Delft and Atlantis.” Only one in three South African children attend preschool or Early Childhood Development (ECD) centers. In three years, the program recruited and retained more than 2,000 children in its early education programs. It struggled to reach its other targets, but experimenting with impact bonds provided South Africa with a useful test model for home-based early education, among other strategies.

Post-Pandemic Growth

Experimenting with impact bonds holds advantages. Studies posit that impact bonds would be a particularly useful tool in the education sector of a post-COVID-19 world. Within this sector, targets are more readily set and evaluated and there is strong appeal for potential investors. Furthermore, partnerships around impact bonds could help foster growth and development in student skills.

This hypothesis will be tested as the market continues to develop alongside new bonds and associated programs. With further experimentation, especially in terms of evaluating program success, impact bonds will continue to shift and change until there is an accurate picture of their titular impact.

– Mckenzie Howell
Photo: Flickr

Protests in Eswatini, Africa’s Last Absolute Monarchy

Protests in EswatiniEswatini, formerly known as Swaziland, is a country in sub-Saharan Africa that has been dealing with protests for weeks. The pro-democracy protests in Eswatini are against the rule of King Mswati III, who has been criticized for his lavish lifestyle.

Poverty in Eswatini

In 2018, Swaziland changed its name to Eswatini. It borders South Africa and Mozambique. According to NPR, the country is Africa’s last absolute monarchy, and political parties are banned there. The ruler of the country is King Mswati III, who has reigned since his coronation in 1986.

King Mswati III has received heavy criticism for living in luxury while nearly two-thirds of Eswatini’s population of 1.2 million live in poverty. This gaping inequality is one of the reasons for the current pro-democracy protests in Eswatini.

Additionally, more than 330,000 people in Eswatini struggle with food insecurity. The country is still reeling from COVID-19 and a 2016 drought that ravaged the country’s food supply. Most of its people face poverty while their king lives in splendor.

Pro-Democracy Protests in Eswatini

Over the past few weeks, protests have broken out in Eswatini. People have rallied in opposition to the monarchy, and specifically the king. They are also expressing displeasure about restrictions on political expression and the poor state of the economy.

The protests have also caused immense damage both to the country and its people. At least 40 people have died, and more than 150 protestors have been taken to hospital with injuries. Additionally, violence and looting have caused a lack of basic necessities for many citizens. Protestors are calling for greater political participation, a limit on the monarchy’s power and a popular election for a Prime Minister instead of an appointment by the king.

Light in the Darkness

However bleak the forecast may seem for the protests in Eswatini, there is a ray of hope. Following the social unrest in Eswatini and South Africa, female religious leaders organized a Day of Prayer for their countries to heal.

The Leadership Conference of Consecrated Life in Southern Africa (LCCLSA) organized an online Day of Prayer. The event encouraged participants to pray for peace, healing and an end to the violence. Some people also shared testimonies of how the violence has affected them and their families, allowing for collective healing.

“Though painful and sad to listen to, the testimonies proved to be inspiring and gave a glimmer of hope in the midst of the hopelessness that people are feeling,” Sr Nkhensani Shibambu, President of LCCLSA, told Vatican News. “Many people were moved and touched by the initiative and felt inspired to begin the rebuilding of the country from the ashes that had surrounded them in the past weeks.”

While protests ravage Eswatini, highlighting the inequity between the lavish lifestyle of King Mswati III and the two-thirds of citizens living in poverty, there is hope in people coming together to pray for healing and a better future for the country.

– Laya Neelakandan
Photo: Flickr

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How Migration in India can Mitigate Poverty

Migration in India
The migrant population is a large driver of India’s economy. India has one of the largest migrant economies in the world. Many Indian workers travel hundreds of miles to work in certain areas of the country to support their families back home. GDP growth rose by over 8% between 2005-2012. In addition, over 137 million people escaped poverty as a result of large-scale migration. There is tremendous potential in using migration in India as a poverty alleviation tool based on past numbers. The Mahatma Gandhi Employment Guarantee Act of 2005 (MGNREGA) is the primary national legislation of the nation geared towards solving its poverty crisis. However, it stagnated as of late due to COVID-19. Migration is a tool towards recovery from the consequences of COVID-19 and it offers a long-lasting solution to poverty in India.

About MGNREGA

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a poverty alleviation legislation. It went into effect in August 2005. The act guarantees a hundred days of wage employment in any given financial year to rural households who have adults willing to volunteer for unskilled manual labor. The MGNREGA focuses on empowering women both socially and economically. The act also focuses on providing green and decent work by conserving natural resources. Although the MGNREGA is successful to some extent, greater poverty alleviation demands the use of migration as well.

Many Indian policymakers fail to recognize the potential benefits of migration. They often view it as a response to tragedy instead of those seeking greater economic freedom and opportunity. The MGNREGA originally intended to provide 100 days of work, now only providing  50 days of work in the majority of Indian states. Migrants can find higher-paying and more stable work within large urban areas and cities. MGNREGA reform is necessary along with the implementation of new migration legislation in order to further mitigate poverty in India.

The Benefits of Large Scale Indian Migration

Based on the same rate of migrant increase in the 2010s, over 56 million individual migrants would have traveled in 2020. Those benefiting back home in rural villages would have totaled 224 million, had COVID-19 not occurred and MGNREGA not reduced Indian migration. In comparison, 37 million families will benefit from MGNREGA during the fiscal year 2020-2021 according to the rural development ministry. Migration benefits a much higher percentage of the Indian population in poverty than MGNREGA does.

Migrants additionally have an easier time assimilating to their destination once their financial situation improves with higher quality work and wages. Women working in agriculture in the Eastern Indian state of Bihar can more than double their daily wages by moving to Patna, the capital of Bihar. Men from Bihar can increase their earnings even more at an increase of approximately 66% by relocating to Punjab and can have an even higher earning potential if they decide to move to major cities such as Ahmedabad, Surat, Delhi or Mumbai.

The Impact of COVID-19 on Migration in India

India’s lockdown period due to the COVID-19 virus lasted over a year, beginning on March 25, 2020. As a result, migration throughout the country came to a standstill as trains and planes stopped operating leaving many Indians trapped. Many migrants lost their jobs due to the toll the virus took on major Indian industries and were far from their homes without any options to get back.

Reducing poverty in India is no small task as it possesses the second largest population in the world. Passing anti-poverty legislation that provides migrants in India more options to travel within Indian borders for work could create millions of new jobs and greatly benefit both the Indian economy and people.

– Curtis McGonigle
Photo: Flickr