Archive for category: Global Poverty

Key articles and information on global poverty.

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Canada’s Childcare Facilities Receive Support

Canada’s Childcare FacilitiesOn April 19, 2021, the Canadian Government announced a new budget that includes increased support for Canada’s childcare facilities. The proposed financial support would reduce the average cost of childcare, granting the greatest benefit to Canada’s most economically vulnerable families. Though arranged by the federal government, the changes were advocated for by several non-governmental organizations (NGOs), including Child Care Now.

Government Promises

The government’s commitment to increasing childcare affordability is part of a newly proposed budget written to address the economic ravages of the COVID-19 pandemic. The new budget would allot $30 billion to childcare spending over the next five years.

The goal of the sizable expenditure is to nationally reduce the cost of childcare to an average of just $10 per day by 2025. If passed, federal money would be used in conjunction with provincial funding to subsidize Canada’s childcare facilities, thereby lowering the cost to parents. A portion of the $30 billion would also go toward improving the quality and accessibility of Canada’s childcare facilities.

Presently, costs for childcare vary widely across Canada. In Quebec’s cities, the monthly cost of childcare is less than $200 due to an initiative passed in 1997 that standardized childcare costs. Outside of Quebec, the average monthly cost can range anywhere from $451 in Winnipeg to more than $1,500 in Toronto. The high prices are burdensome for all Canadians, but particularly so for the nation’s impoverished communities.

Child Care, Poverty and the Pandemic

Though not the pandemic’s most obvious impact, a lack of affordable childcare has strained Canada’s economy over the past year. Some of the strain stems from Canada’s childcare facilities and schools being closed to prevent the spread of the virus. As a result, many working parents, particularly mothers, have had to take care of children instead of working.

The pressure that the COVID-19 pandemic has put on women and mothers is reflected in Canada’s 2020 labor statistics, which show that women have exited the workforce at higher rates than men. In fact, the number of men in Canada’s workforce has increased by more than 60,000, while the female workforce has shrunk by at least 20,000.

Impact on Mothers

A large proportion of the women impacted by job losses are low-income mothers. A review of labor statistics found that among mothers ages 25 to 54 who had children younger than 12 years old, the mothers making less than $1,200 per week accounted for most jobs lost within that maternal demographic. Mothers in that group who made more than $1,200 per week actually increased representation in the workforce by almost 12%.

The same report also shows that mothers left the workforce at higher rates than other Canadian women in 2020. For instance, among women ages 25 to 54 who make between $500 and $799 per week, there was an almost 34% decrease in employment among mothers compared to a 21% decrease among women without children. This trend holds true for other earning brackets below $1,200.

While not all job loss among Canadian women can be attributed to maternal responsibilities, motherhood has clearly been a contributing factor for many women who have lost jobs during the pandemic. The fact is particularly true for low-income mothers who are least likely to have a job that will allow them to work from home. Without access to affordable childcare, mothers will continue to remain stuck between joblessness and caring for their children. The new Canadian budget and its advocates aim to solve this bind.

Child Care Now

One of the NGOs that gave support to the new budgetary spending on childcare was Child Care Now. Child Care Now is a Canadian nonprofit organization founded in 1982. The organization advocates for increased government spending on public and nonprofit childcare facilities. The nonprofit’s membership is made up of parents, childcare professionals and all parties concerned with the availability of accessible, affordable and safe childcare. Among the most pressing goals is the expansion of public childcare options throughout Canada.

On February 19, 2021, Child Care Now submitted a budgetary consultation to the Federal Ministry of Finance. In this consultation, Child Care Now made a case for increased federal spending on Canadian childcare, both in response to the impacts of COVID-19 and as an investment in the future of Canada’s childcare system.

Among the recommendations made by Child Care Now is the allotment of $2 billion in emergency spending to bolster Canada’s childcare facilities as well as the allocation of an additional $10 billion over the next three years to increase the access and affordability of public and nonprofit childcare options. When the government announced $30 billion in new spending on childcare, the response from Child Care Now was enthusiastic.

The Road Ahead

While the new budget still needs to be passed by the Canadian House of Commons, Canada’s investment in affordable childcare shows that the government is committed to the well-being of Canadian families. Should the budget pass into law, it will undoubtedly benefit the low-income mothers who have suffered the brunt of the pandemics’ economic hardships.

– Joseph Cavanagh
Photo: Flickr

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Education in Ghana: the North and South Divide

Education in GhanaThere is a stark difference in education in Ghana between the northern and southern regions. 18-year-old Kelvin Odartei lives in Southern Ghana and recently became the first car-owner in his community. However, Odartei’s kinfolk in the northern regions of Ghana had no such chances. Despite a renowned ranking in Africa due to its natural wealth, Ghana struggles with educational infrastructure in the northern regions. Politics in northern regions have restricted learning possibilities. But today, things have changed.

History of the North and South Divide

Ghana was the first African country to gain its independence from British colonial rule. Kwame Nkrumah led the country to independence on March 6, 1957, while he formed Pan-African organizations across the continent. Nkrumah led successful efforts to expand literacy in Ghana. His administration built and funded multiple schools across the southern regions. As a result, many southern regions have an educated population of young adults.

However, that was not the case in Northern Ghana. Sources indicate that the Nkrumah administrations neglected the northern regions’ educational system in the 1960s due to tribal-nationalist conflicts that emerged alongside the post-colonial governing efforts. As quoted by President Nkrumah’s critics, “We were hoping that when Ghana was independent the newly all-African Government would provide the North with all that was required to free the North from ignorance… [I]nstead this the Government dominated by Southerners, are doing all they can to keep the Northerners down so that they can use them as servants.” Since then, not many governments have made efforts to increase the quality of education in the northern regions.

For instance, the Sanguli schools in the northern region, founded in 1961, had 500 students with only four teachers. The school’s quality and infrastructure were reported to include “inadequate infrastructure, insufficient teaching staff and lack of information, communication technology, ICT laboratories, as well as libraries.” As a result, the poverty rate has remained alarmingly high, according to concerned residents.

Lack of resources and budgets has also resulted in poor educational settings — students were forced to sit on the floor, potholes inside the classroom had issued health and safety concerns and parents reported students experiencing forced labor in teachers’ farms in exchange for school fees.

2017 and Beyond

Things took a turn in 2017 as Ghana’s current president Akufo-Addo ensured that all regions will have newly constructed schools and supplies. “There will be no admission fees, no library fees … no examination fees…. There will be free textbooks, free boarding and free meals.” You can learn more about recent reforms for education in Ghana here.

U.S.-founded Millenium Change Corporation (MCC) has funded over $9 million for Ghana’s educational sector. This includes money for the construction of 221 schools in Northern and Southern Ghana. Furthermore, since 2007, MCC has made groundbreaking “investments in education infrastructure [which] would lead to improved school access. Improved school outcomes would lead to poverty reduction through economic growth.”

Today, Ghana has one of the highest investments in education with “30% of the government budget on the educational sector” and 11% of the country’s GDP invested in public schools. Because of the increased educational infrastructure, young students like Odartei can feel confident that Ghana can carry their future dreams.

– Ayesha Swaray 
Photo: Flickr

COVID-19 and Homelessness in Prague

Homeless PragueThe goal of ending homelessness in Prague has seemed more reachable since the COVID-19 pandemic began. Prague, the capital of the Czech Republic, is one of its most crowded cities and a huge tourist destination. In Prague there is a huge gap between the rich and the poor and a system which allows homelessness.

Prague currently has a population of about 1,321,000 people. Of those 1,321,000, 5,000 adults and children are homeless and living under terrible conditions. Common factors contributing to Prague’s homelessness are alcoholism, debt and unemployment.

COVID-19

During the ongoing COVID-19 pandemic, hotels were fighting homelessness in Prague to further prevent the spread of the coronavirus. As cases of coronavirus continue to drop, city officials will continue to extend the program in order to help homeless people. Prague’s city council is continuing to fund the hotels so they can shelter any homeless people through the pandemic and after. The City Council will also be responsible for any damages.

Hotels and Prague’s city council originally intended this program to help reduce the spread of the coronavirus. But, according to Adam Zabransky, Councilor for Housing and Transparency, many now see the program as an opportunity for long-term solutions to homelessness. Because of the program, many of the homeless have utilized the social services available to them. While there are many hotels that have continued to provide the homeless with resources and housing due to the program, some hotels may not want to continue during the pandemic for a variety of reasons. Nevertheless, there are some who are claiming benefits and government aid to help cover their expenses.

Prague’s government has also utilized an additional resource for the homeless who have contracted the coronavirus. This resource is a rented luxury hotel for those with COVID-19 to be able to self-isolate and recover. The program offers those in the hotel three meals a day, medical care and other resources to assist them.

Outlook Going Forward

Although the Czech Republic was economically healthy before the pandemic, there were still hundreds of homeless people in Prague. But the support from the government during the pandemic has made it easier for the homeless to recover.

While the City Council of Prague put in their part to house the homeless during the pandemic, they can continue to assist the homeless with the same resources after COVID-19. While progress has been made to combat homelessness in Prague, there is still a long way to go.

– Jose Ahumada
Photo: Flickr

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Phone Apps Fighting World Hunger

Apps Fighting World Hunger: Fighting World Hunger with a PhoneHunger is a problem for more than 600 million people around the world. The number of people that are food-insecure, meaning that they lack “consistent access to enough food to have an active and healthy life,” has risen as a result of the COVID-19 pandemic. Feeding America projects that the 2018 food insecurity rate will increase by nearly 5% among the general population due to the pandemic. One can see similar trends worldwide. The World Food Programme (WFP) estimates that approximately 111 million more people will experience acute food insecurity in 2021 than in 2020. In response to data like this, a number of companies have developed apps fighting world hunger or have included new forums within pre-existing apps to help reduce hunger’s impact internationally.

Rakuten Viber

Rakuten Viber, a communication app, announced it would initiate a campaign to raise funds to combat world hunger. The campaign includes a “Fighting World Hunger” community group, which resembles a large chatroom that members can add themselves to. The group aims to promote the improvement of members’ consumption habits by focusing on ways to consciously shop, cook and eat to reduce food waste, as well as posting data regularly about world hunger for members to read.

In addition to creating its community, Viber also launched a downloadable food-themed sticker package, of which proceeds will be donated to the cause. This is an addition to committing to donate $10,000 to charities fighting world hunger like the Food and Agriculture Organization of the United Nations (FAO), International Federation of Red Cross and Red Crescent Societies (IFRC), World Wide Fund (for Nature) (WWF), UNICEF, U-report and U.N. Migration once the community group reaches one million users.

ShareTheMeal

ShareTheMeal, an app developed by the U.N.’s World Food Programme, allows users to donate to help feed children worldwide. With a quick tap, the program accepts a $0.80 donation — the amount the organization has deemed necessary to pay for a meal abroad for most children. Since launching, ShareTheMeal has shared more than 100 million meals with those in need.

Chowberry

Chowberry, a Nigerian-based app, is also fighting global hunger. Chowberry is focused on ending food waste in Africa by connecting families in need to local supermarkets with nearly expired — but still safe for consumption — foods. Stores use the Chowberry app to scan the barcodes of food products. Once uploaded, the app informs retailers when the products have reached the “best before” date and automatically offers those products at a reduced price through the app and the accompanying retail website. The closer the products are to the latest possible selling date, the lower the price is. For more economically unstable families, the app helps provide more affordable and consistent food options without causing retailers to lose profit.

OLIO

Another app fighting world hunger is OLIO, an app that encourages community sharing. OLIO members upload photos and descriptions to the app of food or other household items they no longer want or cannot use. Other members can then browse for items through the app, directly message the person who posted about the items and arrange pickup for the items they would like to claim. The app currently hosts more than three million users and has shared more than 21 million portions of food across 51 countries. The app’s navigation is only available for English and Spanish speakers, but people can use local languages in messaging and posting. OLIO hopes to add more languages soon to become more user-friendly.

Apps Fighting World Hunger

Hunger is a significant issue affecting countries across the world. Since the COVID-19 pandemic, global hunger rates have grown along with the number of families suffering from acute food insecurity. While several international programs offer hunger relief on a larger scale, millions of people can also help lessen the impact of COVID-19 and other global crises by downloading apps fighting world hunger.

– Grace Parker
Photo: Flickr

Female Genital Mutilation in Yemen

Female Genital Mutilation in YemenFemale genital mutilation (FGM) is a procedure that is still being performed in parts of Yemen and is rooted in social concepts of femininity. Female genital mutilation is a practice that is inhumane and has many adverse side effects. In Yemen, 15% of women have been mutilated. However, humanitarian organizations are proactive in alleviating the tradition of female genital mutilation in Yemen by raising awareness.

Cultural Pressures for Women

The justification for female genital mutilation stems from a long-held social belief backed by gender inequality practices. The procedure intends to help maintain a woman’s clean, feminine and virtuous ways. The World Health Organization claims FGM is “associated with cultural ideals of femininity and modesty, which include the notion that girls are clean and beautiful after removal of body parts that are considered unclean, unfeminine and male.”

However, female genitalia mutilation has costly effects for women in both the short term and long term. It is excruciatingly painful in the short term, causing excessive bleeding and urinary problems. In the long term, women experience an increased risk of vaginal cysts, wound infections, menstrual issues, childbirth complications and reoccurring pain.

Although Yemen has outlawed female genital mutilation in medical facilities, it is a practice within homes. The woman of the family usually performs the act using a razor blade or scissors. This usually occurs a few days after a female is born, but records show that girls have undergone the procedure as old as 15. Unfortunately, since FGM is illegal in medical facilities, families cannot provide further care to the girls if it is necessary.

Finding Solutions for Female Genital Mutilation in Yemen

UNICEF estimates that 19% of females in Yemen have experienced female genital mutilation. However, the Yemen Demographic Mother and Child Health Survey of 1997 shows that 48% of Yemen’s population believes it should be against the law.

The resistance to outlaw this practice traces back to a lack of education for young girls. DVV International studies show that 60% of Yemen women are illiterate, while 70% of men know how to read and write.

It will take time and education to criminalize female genitalia mutilation in Yemen to enlighten the practice’s truths. Without a full grasp of the pain of female genitalia mutilation, women cannot understand why the procedure is criminal. By utilizing the community and educational tools, knowledge about female genitalia mutilation will increase and awareness spread.

Raising Awareness for Female Genital Mutilation in Yemen

As said by Moroccan human rights activist Khadija Ryadi on the opposition to outlaw FGM, “This is because these laws require that society prepares for them. Society cannot prepare automatically, as these are the responsibilities of governments and civil organizations. Governments must work harder to change the attitudes, customs, and the inequality of women.”

However, there is a growing awareness of the practice in Yemen. Many women are advocating for laws and regulations to end female genital mutilation. However, there are no other bills within Yemen’s republic that protect women from gender-based violence or child marriage. A 2020 report by 28 Too Many found that since the onset of civil war in 2015, Yemen has seen a 63% rise in violence against women. However, because of the lack of government protection, the women of Yemen are vulnerable.

Looking Ahead

The World Health Organization has made February 6 Zero Tolerance Day for those affected by female genitalia mutilation. This showcases that more than 200 million women worldwide have seen the direct effects of female genital mutilation, thus bringing more attention to the issue. With growing knowledge and awareness around this act of abuse, there will be reform and change.

– Rachel Wolf
Photo: Flickr

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SKHM: Efforts in the Red-Light Districts of Kolkata

SKHMOperating in the red-light districts of Kolkata in India is the organization South Kolkata Hamari Muskan (SKHM). SKHM works to secure safe shelter, basic needs and education for women involved in prostitution and the children of these women. Since 2009, it has supported women and children living in red-light districts. The organization provides women and children with the resources and skills needed to become self-sufficient without having to resort to red-light district activities.

The Dangers of Impoverished Red-Light Districts

The impoverished red-light districts of Sonagachi and Bowbazar are notorious for dangerous and often illegal tertiary trades. These include prostitution, gambling halls, marijuana bars, brothels and liquor stores. Unique to red-light districts is the fact that where civilians conduct their services is most often also where they live. Women working as prostitutes will almost always work out of their homes. This exposes children and other family members to the dangers of these jobs, which include violence and abuse.

Prostitution is the main occupation for women in red-light districts and is traditionally a trade passed down through generations.  Many women involved in prostitution come from impoverished backgrounds. The trade has become a hallmark of life in these areas, making it harder for women and young girls to escape the vicious cycle. Children growing up in this environment often witness or endure violence, abuse and neglect. The resulting trauma impacts a child’s mental, emotional and social abilities, which in turn, impacts their development and progress in life. These children are often not in school, leaving them illiterate, uneducated and forced to participate in red-light district activities.

According to India’s Central Bureau of Investigation (CBI), India has more than three million prostitutes. Roughly 1.2 million prostitutes are estimated to be children. Red-light districts are at the epicenter of these trades and impoverished communities are often targeted for prostitution rings because of their vulnerabilities.

SKHM’s Work

SKHM strives to break the cycle of prostitution and poverty by protecting women and children through educational programs, safe centers, vocational training and psychosocial therapy. SKHM works directly in red-light districts with the belief that change can only come from within when it is demanded by the community itself. During the last 12 years, SKHM has helped hundreds of women and children in Kolkata acquire a better life.

  • The organization has placed nearly 200 children in formal schooling. Giving children access to education introduces them to what SKHM calls “the mainstream world.” Education shows children that there is a life outside of the red-light district and teaches them to aspire toward a better life. Proper education gives children the knowledge and skills to rise out of poverty. It also helps break the cycle that holds them to a life of poverty and violence.
  • SKHM is the first NGO in Kolkata to use play and art-based therapy with children. The innovative therapy allows specialists to determine the trauma and psychosocial needs of women and children living in red-light districts in a relaxed and non-confrontational way. This is important when dealing with children who have been severely abused. Since 2009, SKHM has opened four safe centers. With two centers in Sonagachi and two in Bowbazar, the safe centers act as shelters and education centers for women and children. The centers help rehabilitate women who wish to escape prostitution and children seeking education and safety.
  • SKHM has implemented successful programs such as Project Dignity. Project Dignity is a rehabilitation program exclusively for women in prostitution. The goal of the program is to encourage women to leave the dangerous job of prostitution and work to become successful heads of households. Through Project Dignity, women can seek mental health counseling, learn about finances, enjoy new hobbies, take literacy classes and learn various occupational skills. They can do so through driving classes, computer classes, jewelry making classes and cooking classes. The program gives women the skills and confidence to qualify for work outside of traditional red-light district occupations. The mother’s group also strictly enforces keeping children in school, which decreases the rate of second-generation prostitution.

Making a Difference

SKHM’s work in Kolkata’s red-light districts has exponentially improved the lives of hundreds of women and children. Society deemed areas like Sonagachi and Bowbazar impoverished, unsafe and beyond help. This left the communities within them helpless and victimized in a vicious environment of prostitution and violence. South Kolkata Hamari Muskan started a mission with the belief that vulnerable people in these red-light districts could be supported by the strength of the community itself. Today, women and children in Kolkata’s red-light districts are dreaming of a better life and they have the skills and education to help them get there.

– Kendall Couture
Photo: Flickr

The Effects of COVID-19 in South Ossetia

The Effects of COVID-19 in South OssetiaSouth Ossetia, an independent state of Georgia, closed its border with Russia in early April to prevent the spread of COVID-19. However, once residents began returning home for the lockdown, cases started to increase despite mandatory quarantine for those crossing the border. South Ossetia confirmed its first case of COVID-19 on May 6. The effects of COVID-19 in South Ossetia have been devastating and continue to worsen as time goes on.

South Ossetia Divided

In mid-April, South Ossetia created a new set of regulations for all retail businesses. It required all employees to wear masks, use hand sanitizer and encouraged anyone experiencing symptoms of COVID-19 to stay home. Despite the regulations, South Ossetia’s public was divided on how serious to handle the virus. Many citizens were frustrated with the government for taking such extreme measures and restrictions. When the first case of COVID-19 in South Ossetia appeared, the government instituted a fine of $200 to $500 to restore order and control the spread of the virus.

Cases increased to the hundreds when South Ossetia re-opened its border with Russia on September 15. South Ossetia’s healthcare system was not strong enough to handle the sudden rise in cases. Soon the president, along with many public officials, began testing positive. The Republic reported a lack of PPE and medicine. With drug and PPE prices increasing, it had to turn to North Ossetia for help. President Bibilov called on Russia to help. A field hospital was then set up in Tskhinvali with 150 beds, 150 medics and medical equipment needed to treat COVID-19.

A Failed Response

As of October 2020, COVID-19 in South Ossetia has increased to more than 650 cases. More than two-thirds of the cases were reported after the Republic reopened its border with Russia. The Republic believes that the number of cases is much higher due to many people self-isolating in their homes. Only high-risk patients were hospitalized as a result of COVID-19 in South Ossetia.

The International Crisis Group included South Ossetia on a list of regions vulnerable to COVID-19 in early May. The report included South Ossetia due to a lack of resources, support and preparedness. For example, the group reported that few doctors were able to treat patients and refused to do so because of a lack of PPE. The group also concluded that the medical staff did not have enough training to handle a pandemic. Most did not even know how to work a ventilator.

The International Crisis Group believes that South Ossetia would have benefitted from working with the World Health Organization earlier. But, unfortunately, South Ossetia refused to report vital information to the World Health Organization, such as requesting medical supplies.

In Conclusion

Overall, South Ossetia was not able to handle the severity of COVID-19, which it proved with its ill-preparedness. Most of its cases came from reopening its border with Russia, and the casualties from COVID-19 would have been much higher if Russia did not come to help. South Ossetia needs to re-evaluate its healthcare system in order to better protect its people from the COVID-19 virus.

– Lauren Peacock
Photo: Flickr

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4 Key Facts About Hunger in Uganda

Hunger in Uganda
The landlocked country of Uganda is located in East Africa. Poised to be a significant oil-producing country, Uganda has an estimated 6.5 billion barrels worth of oil reserves in its territory. Nevertheless, Uganda remains a lower-income country. The people of the country have struggled to combat hunger in Uganda even though poverty decreased from 56% in 1993 to 21.4% in 2016. Because of poverty, Uganda faces widespread malnutrition, which has led to more than 110,000 deaths of children between 2004 and 2009. Organizations have committed efforts to address the issue of hunger in Uganda.

4 Key Facts About Hunger in Uganda

  1. Uganda has a fast-growing population due to refugee intake. The refugee population in Uganda has increased from 200,000 in 2012 to more than 1.2 million. As a whole, these refugees are coming from Uganda’s neighbors, South Sudan and the Democratic Republic of the Congo. This is partly because of Uganda’s willingness to accept and aid refugees. The United Nations High Commissioner for Refugees has praised the country’s refugee policies. Rather than placing refugees in designated camps, Uganda gives refugees a plot of land and access to services such as healthcare and education. As benevolent as these policies are, the rise in Uganda’s refugee population strains already limited resources and funds.
  2. Dependence on agriculture increases hunger in Uganda. In order to reduce malnutrition, there has been a focus on increased agricultural output globally. The rate of global agricultural production has increased, but the level of undernourishment in developing countries remains at 13.5%. In Uganda, for example, agriculture makes up 25% of the GDP and it provides the main source of income for all rural households. But, despite this agricultural output, Uganda still suffers from a 30% malnutrition rate. A study conducted in Eastern Uganda finds that some rice cultivators starve as they sell all the food. While the effects vary, agricultural reliance in Uganda has increased supply, but access to food has not necessarily increased. This leads to high levels of food insecurity.
  3. Hunger in Uganda has significant economic impacts. The effects of malnutrition extend far past the immediate deaths it causes, having substantial and negative consequences for the economy at large. Specifically, malnutrition negatively impacts “human capital, economic productivity and national development.” High rates of malnutrition require healthcare intervention, which puts strain on the healthcare sector and economy. Moreover, malnutrition makes individuals more prone to diseases, incurring costs to families and the health system. Undernourished children are more susceptible to diseases like malaria and anemia, which can burden the country with a cost of $254 million annually. Overall, the national income is reduced by 5.6% as a result of the undernourishment of young children stemming from hunger in Uganda.
  4. International aid organizations address hunger in Uganda. Aid organizations are committing to creating significant progress in the fight against hunger in Uganda. The World Food Programme (WFP) has dedicated efforts to prevent and treat malnutrition in Uganda. Among other activities, the WFP initiatives provide nutrition-sensitive money transfer as well as nutrition counseling in the areas of Uganda most affected by malnutrition. Action Against Hunger provides nutritious food vouchers to refugees and implements digital, data-driven technology to optimize agricultural production. To date, Action Against Hunger’s nutrition and health programs have reached more than 110,000 people. Moreover, the government has joined multiple international commitments to reduce hunger in Uganda. As a signatory of the Malabo Declaration, by 2035, Uganda seeks to reduce the impacts of childhood malnutrition to 10% for stunting in children younger than 5 and 5% for wasting.

Overall, the efforts of organizations and the commitment of the Ugandan Government show a strong dedication to combating hunger in Uganda and improve the lives of people in the country.

– Kendall Carll
Photo: Flickr

Lebanon’s economic crisis

Lebanon’s economic crisisAn unprecedented economic crisis has gripped the nation of Lebanon for the last 18 months. Years of political instability propelled Lebanon’s economic crisis, however, 2020 worsened its struggling economy through two events: first, the COVID-19 Pandemic that asphyxiated economies worldwide and, second, the massive explosion in the Port of Beirut that detonated in early August. These two disastrous, high fatality events transformed a dire situation into Lebanon’s economic crisis.

The Crisis Reaches New Heights

Last year, Lebanon saw a surge in inflation rates accompanied by sharp spikes in poverty. As the crisis reached new heights, central banks stopped lending money to medium and small businesses. This decision increased an already harsh situation for working-class people in Lebanon. The World Bank estimates that over half of the nation’s population possibly lives below the poverty line. Access to food, water and other staples have become dangerously restricted for those most affected by this economic crisis.

The consequences of the Beirut blast reached national proportions for Lebanon. The level of urban reconstruction needed to repair the damaged portions of Beirut has added a significant strain on the other infrastructural demands. Services that have been affected include access to a consistent electrical grid and waste management system. On a local level, the blast devastated the immediate surroundings and the cost of reconstruction has mounted to several billion dollars.

International Aid for Lebanon

International groups launched a fundraiser for an aid initiative in December of 2020. These groups created an outline for recovery and a restructuring Lebanon’s financial sector to combat constricting debt and financial insecurity. However, The World Bank emphasizes the need to bolster Lebanon’s internal financial sectors to achieve economic stability. With this in mind, Lebanon will require international assistance to reach these goals.

Civil and Political Unrest

Before the Pandemic, Lebanon’s economic woes were entangled within a collapsing central banking system. Overloaded with debt and inflated liquidity, the central bank shut down, effectively denying the majority of Lebanon’s working-class access to bank loans and financial services. The collapse of the financial sector plunged swaths of Lebanon’s population below the poverty line. Demonstrations and other forms of civil unrest stretched security forces thin and established a new norm of chaos. In the midst of the social upheaval, the government fell apart, dashing hopes for a centralized internal reconstruction of the nation’s economy and infrastructure.

Political analysts blame both the country’s central bank and the Hezbollah party for the roots of the economic crisis. Furthermore, analysts insist that a solution cannot be implemented until both of these problems are addressed. Despite the current political instability of Lebanon and its failed efforts to reform its government, analysts fear that the nation may descend deeper into political division. If the structure of Lebanon’s government deteriorates to the point that a power vacuum becomes available, extremist groups will take advantage, which demonstrates a grave risk to global security.

Lebanon’s Future

As the political vacuum occupying Lebanon’s center persists, the nation looks ahead towards elections in 2022. The future of Lebanon relies on the consensus of multiple political factions. This could prove a tedious situation. Such mediation would weigh the fragile balance of international intrusion, whether from the International Monetary Fund (IMF) or political incentives from the United States or Iran. The likeliest path for Lebanon will include a series of shortterm stabilization efforts that will impede the rate of economic collapse and look towards shoring up Lebanon’s financial sector. However, the longterm vision of Lebanon is still a matter of deep contention.

– Jack Thayer
Photo: Flickr

Agriculture Cooperatives in Impoverished Communities

Agriculture Cooperatives in Impoverished CommunitiesFor the estimated three-quarters of the global impoverished residing in rural environments, agriculture is the primary source of income. Any aspirations of poverty eradication are existentially dependent on the development of these communities. Cooperatives are associations of people who come together to achieve common economic, social and cultural goals. The long-standing tradition of agriculture cooperatives in impoverished communities, where small farms pool resources, is a potential component of an efficient policy to offset the ravages of endemic poverty in agrarian economies.

A Moment in the Sun

Designated by three branches of the United Nations, 2012 was the International Year of Cooperatives. One of its primary ambitions was to highlight the financial disadvantages of small farms and the potential for inter-community economic unions to fight poverty. Agricultural cooperatives, having an impact that “cannot be overstated,” figured heavily into U.N. recommendations and initiatives. Creating 20% more employment opportunities than multinational ventures, agriculture cooperatives in impoverished communities provide a long-term potential for sustainable job creation, which is paramount to poverty eradication.

Harvesting Prosperity, a 2020 World Bank report, concluded that funding agricultural productivity is twice as effective at reducing extreme poverty as alternative methods. Crucially, the exhaustive report details the belief that industrial farms are the gold standard of high-yield agriculture. Contrarily, current research on “the inverse relationship hypothesis” questions the correlation between scale and productivity. Because impoverished rural communities are overwhelmingly populated with small-scale subsistence farms, one cannot overstate the essentiality of agriculture cooperatives in impoverished communities.

Being unique entities based on democratic principles, each cooperative has distinct requirements that defy a universal approach. The economic complexities of members serving as both suppliers and owners create multifaceted organizations with financial and social obligations, as opposed to a corporate performance that is based solely on finance and profitability. The dualistic nature of cooperatives as inherently business and community actors gives these organizations a great deal of leverage to impact the well-being of their communities.

Portuguese Traditions in the Age of Globalism

Over the long history of wine-making cooperatives in Portugal, these unions have consistently allowed members to garner higher prices and greater market share while simultaneously improving value chains and decreasing transaction expenses. Additionally, Portugal has garnered attention as cooperative bylaws are enshrined in the constitution, making them integral to the national economy.

With 39,506 vineyards in the Douro wine-growing region alone, the long-term economic future of an essential component of Portuguese national character requires the implementation of structural reform. Cooperatives represent 46% of regional production in Douro and Port. With most farms under one hectare, individual producers must combine resources to vinify grapes. But, after several failed governmental attempts at modernization in response to globalism, agricultural cooperatives have been stymied by encroaching foreign markets.

Upon Portugal’s entry into the EU in 1986, a direct-to-consumer model that sustained wine cooperatives became untenable as cheap imports via larger wine-producing nations like France and Italy brought competition. Furthermore, environmental and geographic factors prevented Portuguese vineyards from countering increasing imports through higher production. Often inefficient bureaucracies, a slow transition, accompanied by foreign investment allowed Quintas — independent for-profit producers — to flourish. Many Portuguese wine agriculture cooperatives in impoverished communities did not survive the opening salvos of globalism.

Think Local, Act Global

The culling of slow-responding cooperatives has forced researchers and policymakers to develop a framework for adaptability. Several organizations, native and foreign, contribute to shaping and communicating the strategies for agriculture cooperatives in impoverished communities.

  • CASES: As previously noted, cooperatives must satisfy social obligations in addition to economic concerns. At Cooperativa Antonio Sergio para a Economia Social (CASES), an NGO focusing on the interrelatedness of finance and society, an alliance of Portuguese Creditors finances various cooperatives throughout the economy. A €12.5 million endeavor, Social Investe enabled several wine cooperatives to fund various projects and improvements.
  • PDR2020: The active involvement of governmental agencies is crucial to structural reform. Wine industry infrastructure is notoriously expensive and beyond the resources of independent producers. A federal initiative, Programa de Desenvolvimento Rural de Portugal (PDR 2020), funds agricultural purchases that are particularly crucial for Portuguese vineyards. These grants, amounting to €37.5 million in 2020 alone, also help farmers adapt to increasingly frequent climatic abnormalities that disrupt production.
  • Fenadegas: In order to affect the regulatory environment, wine cooperatives actively lobby for policy reform. Difficult at the individual level, Adegas Cooperativas de Portugal (ACP) is a coalition of 41 members and represents a unified agenda for addressing distinct exigencies of the industry. Additionally, the organization provides a global marketing platform, helping one cooperative survive the COVID-19 pandemic by increasing exports by 18% in 2020.
  • SALSA: The dual requirements of integrating with the local economy and tailoring production while simultaneously developing global strategies present major challenges. With the intergovernmental organization Small Farms, Small Food Businesses and Sustainable Food Security (SALSA), Alentejo regional farmers created the “Km0 Evora” label that certifies local provenance within 50km. Efficient value chains are a traditional strength of cooperatives, but pressures of globalism have disrupted local economies, making community initiatives and branding more relevant. Mimicking Km0’s success, several European agricultural cooperatives have introduced similar measures.
  • Adega de Borba: Maximization of member profit and temporary gain often leave cooperatives under-invested. Despite initial struggles, Adega Cooperativa de Borba (ACB), which began in 1955, successfully transitioned to the global marketplace and produces 15 million bottles annually. A €12 million-member investment to build a state-of-the-art production facility has allowed 300 small farmers to compete internationally by diversifying product offerings.

Restoring Profitability to Agriculture

As rural communities face increasing pressure from foreign influence, these already-disenfranchised populations will struggle to have others hear them amid the cacophony of global interests. Portuguese winemakers, that the rapidly-changing economy overwhelmed, suffered immense emigration as farming no longer provided sufficient income. Restoring profitability to agriculture is a powerful mechanism by which endemic poverty can disappear. Organizations at numerous levels will be instrumental in this effort, but progress must begin with collaboration in agrarian rural communities.

– Kit Krajeski
Photo: Flickr