Archive for category: Global Poverty

Key articles and information on global poverty.

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The World Bank’s Crisis Response to the COVID-19 Pandemic

The World Bank's Crisis Response
In early October 2020, the president of the World Bank Group (WBG) gave a speech to address the COVID-19 pandemic and the World Bank’s crisis response. In his speech, WBG president David Malpass discussed the enormous toll that the COVID-19 pandemic has had on developing countries. He also stated that the World Bank’s response would focus on alleviating poverty, inequality and debt burdens, and support educational and health opportunities.

Disparities

Dramatically uneven access to Personal Protective Equipment (PPE) across the globe is one indication of global disparities in economic well-being, which in turn have affected pandemic response capabilities. Lowering the transmission of COVID-19 requires the coordination of a globalized response. However, localized country-wide challenges in securing PPE, the most basic of pandemic safety necessities, prevent this possibility.

Illustrating this challenge is the fact that low-income countries have little economic agency to act during the global pandemic. Developed countries may face shortages in supplies of PPE. Those countries may even opt to reduce the supply of outgoing PPE sales in order to remediate domestic shortages. However, restrictive budgets, few local manufacturers and no way to import PPE exacerbate shortages in developing countries.

A 2020 National Institute of Health study estimated that if countries tightened up sales of PPEs, “export restrictions could initially increase prices of medical masks by 20.5%, Venturi masks by 9.1%, and protective equipment, such as aprons and gloves by 1% and 2% respectively” around the globe. Illustrating the problem, a recent survey of seven low-income developing countries across the world showed that on average, clinics and health centers were only able to supply two of four necessary PPE items to medical staff. The challenges presented by PPE distribution demonstrate the importance of the World Bank Group’s aid programs around the world.

Dual Challenges

Lockdown guidelines that have successfully “flattened the curve” in developed nations are not always a viable option for developing economies. For example, in India, nearly 90% of the workforce is in the informal employment sector. In sub-Saharan Africa, 86% of workers have informal employment. The nature of informal work requires workers to leave the house for work and as a consequence, choose between keeping their families fed or respecting lockdowns. Countries that struggle to lower transmission rates or offset the financial damage of lockdowns see dual challenges. Implementing measures that “flatten the curve” and lower transmission rates cause economic harm. On the other hand, failing to reduce hospitalizations inflicts strain on medical systems, leading to high infection rates and death tolls.

“A Fire That Must Be Put Out”

In the World Bank Group’s June 2020 COVID-19 Crisis Response Approach Paper, the ongoing COVID-19 crisis is described as “a fire that must be put out.” As a direct result of the pandemic, for the first time in 60 years, the World Bank projected that Emerging Markets and Developing Economies (EMDEs) will see economic contraction. The global economy will likely shrink by 5.2% in 2020, the deepest recession since World War II. For comparison, the global economy shrank less than 2% during the 2009 financial crisis. A number of traits cause EMDEs to be especially vulnerable to the pandemic’s negative economic impacts. Traits such as weaker health systems, dependence on global trade and tourism exacerbate financial instability. For the first time in decades, global poverty will rise.

The World Bank Group’s Response

Despite challenges, international financial institutions, including the WBG, are moving quickly to prevent the loss of hard-won development growth in EMDEs. The WBG has recognized the new paradigm of the pandemic and as an organization, has shifted its focus to a crisis response agenda. In April of 2020, the WBG announced the first projects directly related to COVID-19 and prepared to deploy up to $160 billion over a period of 15 months to address COVID-19.

Like other international organizations, the World Bank’s crisis response to COVID-19 aims to focus on issues directly related to the pandemic. However, the WBG ensures a continuation of its broader development objectives by placing its COVID-19 crisis response agenda within its own Twin Goals. Adopted in 2013, its Twin Goals are to bring extreme poverty down and to promote prosperity among the bottom sector of every country. The WBG’s massive $160 billion project rollout focuses on direct response to COVID-19, and on protecting past economic development gains. This includes maintaining steady progress towards the Twin Goals.

The World Bank’s current crisis response agenda can be divided into near, medium and long-term agendas. These agendas are termed relief, restructuring and resilient recovery. Relief relates to dealing with the most direct impacts of COVID-19. Its restructuring plans include strengthening health systems, restoring human capital and restructuring social and economic sectors. Resilient recovery is about building a future in recognition of a changed post-pandemic world. In pursuing these plans, the WBG ultimately aims to assist at least one billion people affected by the pandemic.

– Marshall Wu
Photo: Flickr

Poverty in the Fashion Industry is a Feminist Issue

Poverty in the Fashion IndustryFashion as a feminist movement is a powerful force to lift women out of poverty. Brands that provide their female garment workers a living wage empower them to lead a dignified life. Fashion consumers advocate for women’s rights based on the equality of the sexes through ethically produced clothing. Consumer brand choices have the power to uplift ethical brands that support labor sustainability and female garment workers experiencing oppression. Considering these facts, poverty in the fashion industry is a feminist issue.

The Feminist Movement

The feminist movement means supporting women all over the globe. The fashion industry is part of the feminist movement because it is a female-dominated industry. According to Labour Behind the Label, 80% of garment workers worldwide are women. They produce the t-shirts with feminist quotes found in stores all over the globe. However, in 2019, Oxfam reported that 1% of Vietnamese garment workers and 0% of Bangladeshi garment workers earned a living wage. In 2019, the Spice Girls’ #IWannaBeASpiceGirl t-shirts sold for Comic Relief’s “gender justice” campaign were made by underpaid female Bangladeshi garment workers. These workers earned 35p an hour during 54-hour workweeks amounting to 8,800 takas — well below the living wage estimate of 16,000 takas. Furthermore, the workers were exposed to harassment and abuse. The business practices of fast fashion brands highlight the imbalance between the feminist movement, consumer actions and the grim reality of garment workers.

The Feminist Movement and Fast Fashion

Fashion brands are a powerful force in ending cycles of poverty. But, fast fashion prioritizes the fast production of cheap clothing made by overworked and underpaid garment workers. According to the Clean Clothes Campaign, it is typical for a garment worker to work 96-hour workweeks for seven days a week, ranging from 10-18 hours a day. On average, the wages paid are two to five times less than what is needed for a worker and her family to live above the poverty line. The Juniper Research study predicts that online shopping fueled by COVID-19 will increase fashion sales to $4.4 trillion by 2025. Top fashion CEOs earn in four days what garment workers spend their whole life trying to make. The unfortunate truth is that fast fashion has made the richest men in the world at the expense of the most vulnerable women.

Poverty in the Fashion Industry

In 2017, the Deloitte Access Economics report for Oxfam Australia reported that paying garment workers a living wage would only increase the retail price of clothing by 1%. In other words, a living wage and fair working conditions are reasonable consumer expectations. Researchers from the University of New South Wales and the University of Queensland also reported that increasing the cost of clothing by 20 cents would allow Indian garment workers to earn a living wage. By investing more in clothing production, brands and consumers can support the global development of garment workers. This will allow workers and their families to invest in education, healthcare and their local community.

Ethical Fashion

Garment workers employed at ethical brands are paid a living wage, have safe working conditions and are treated fairly. On the other hand, fast fashion workers face gender discrimination through mandatory pregnancy tests, abuse and sexual harassment. Fashion as a feminist movement has the power to address the main human rights abuse in the industry — the non-payment of a living wage.

Female empowerment is a catalyst for prosperity. The United Nations reports that investing in the education of girls and women helps global transformation. It contributes to economic growth, reduces poverty through increased productivity and improves health outcomes. Studies have shown that providing basic education to girls until adulthood enables them to better manage their family size, provide better care to their family and send their children to school.

However, poverty is an important factor in whether girls and women obtain an education. Without a living wage, poverty-stricken workers cannot afford to send their children to school and the cycle of poverty continues. Education has the power to help improve the lives of women and reduce maternal and child mortality rates. Therefore, education for girls fosters the development and empowerment of women.

Moving Forward

Poverty in the fashion industry is a feminist issue. Brands that invest in the talented and skilled female workforce acknowledge that living wages empower women and their local communities. Garment workers need to be placed at the forefront of the industry to negotiate better pay and working conditions. Being in leadership roles ensures that fashion as a feminist movement represents the most vulnerable around the world. The fashion industry and consumers have the power to help end global poverty, improve access to education and empower women through conscious consumerism.

– Giselle Magana
Photo: Flickr

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4 Sustainable Fashion Brands Fighting Poverty

sustainable brands fighting povertyThere are many sustainable fashion brands fighting poverty. In many countries, jewelry making is not only a tradition but also a way to make a living. Many poverty-stricken countries rely on fashion production to keep their economy going. Because of this, brands that provide their garment workers a fair living wage and safe working conditions help alleviate poverty in low-income areas. Sustainability lifts workers out of cycles of poverty by making long-lasting products from sustainable materials. The following brands produce fair trade products and are finding alternative ways to continue fighting global poverty.

ARMEDANGELS

ARMEDANGELS is a fair fashion brand that prioritizes producing contemporary and modern collections with fairly produced, eco-friendly and high-quality products. The company ensures high standards and fair working conditions by working with PETA, the Fair Wear Foundation and the Fairtrade Organization. Since 2011, the brand has been Global Organic Textile Certified (GOTS) and only works with regenerative and sustainable materials, which include organic linen, organic wool, recycled cotton, organic cotton and more.

In April 2018, the company founded ARMEDANGELS Organic Farmers Association to help small farmers transition from conventional cotton to organic cotton. The brand also strives in pushing for social change by engaging in political and environmental activism. Within its Greener Deal, donations were provided to organizations actively involved in climate protection in Europe and Germany. ARMEDANGELS also achieved climate neutrality and its CO2 emissions are two-thirds lower in intensity than classic fashion companies.

SOKO

SOKO is a certified women-led B-corp ethical jewelry brand that employs Kenyan artisans who produce collections for conscious consumers. This company believes that economic sovereignty and financial inclusion provide lasting impacts and actively works to reduce poverty and inequality. The brand works toward this goal with its virtual manufacturing platform. The platform connects 2,300 independent artisans with a global marketplace through mobile technology. The SOKO platform allows artists to receive orders and payments to hand-make products from upcycled and ethically sourced materials. Because of this network, workers can improve and preserve their cultural techniques at scale. They can also earn five times more than those employed in an average artisan workplace.

SOKO employees only work 50% or less of their total capacity. This helps them to avoid sole reliance on this particular sustainable fashion brand, to guarantee their freedom and to encourage sustainable, long-term economic sovereignty. Because of policies like this, the United Nations, USAID and the World Bank have endorsed SOKO for its social impact.

Nudie Jeans

Nudie Jeans is a Swedish denim brand founded in 2001 that produces 100% organic cotton denim collections for more than 50 countries. The company prioritizes environmental and social sustainability through its free repair services, resale of secondhand trade-in jeans and by paying its garment workers a living wage. Since 2016, Nudie Jeans’ stakeholders have verified that 3,400 workers have been provided additional payments to ensure a living wage. These payments expanded in 2019 to include workers employed in the spinning mills, knitting and processing units. This has the effect of creating a fair trade system throughout its supply chain.

Akola

Akola is a jewelry brand that uplifts Ugandan women by providing empowering job opportunities in Jinja, Uganda. Akola employs nearly 200 Ugandan women. By handcrafting each piece, female workers break free from poverty through fair-paying jobs that help them achieve economic independence. Because of this policy, positive economic impacts reverberate through families and communities.

The women are also provided with a holistic curriculum of programs. The brand offers training programs on leadership, financial literacy and skills to become self-reliant. This brand uses cultural techniques and local and sustainable materials such as upcycled palm leaves, cow horns and agave plants. The impact of Akola is shown by the fact that 66% of Akola-employed women own land or a home, almost 80% of Akola children are enrolled in school and almost 30% of Akola women are in community leadership positions.

These sustainable fashion brands fighting poverty help create solutions in the fashion industry. Supporting fair fashion can help garment workers escape the cycle of poverty.

– Giselle Magana
Photo: Flickr

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COVID-19 in Mexico

COVID-19 in MexicoThe COVID-19 pandemic has led to a historic level of downfall in Mexico’s economy, causing thousands of individuals to lose their jobs. As of 2018, approximately 42% of the Mexican population lived below the poverty line; the pandemic has unfortunately strongly contributed more and more individuals to the impoverished communities in Mexico. The Mexican government did not impose a general lockdown because many citizens could not afford it. Even so, the economy was paralyzed due to most consumers locking themselves down voluntarily. Furthermore, public hospitals collapsed, resulting in people unable to receive medical attention or the private visit that could ultimately save their lives. COVID-19 in Mexico has brought to light the wealth disparity among citizens in Mexican society.

Vaccine Inequality

Vaccine inequality is prominent among those living in poverty. Vaccines are not currently reaching the rural areas of Mexico where there are thousands of people who are now geographically isolated from vaccine centers. Additionally, those who live in rural areas would require technology to stay informed about these vaccine centers, but poverty inhibits people from accessing technology and therefore the necessary education and information about vaccination.

Many citizens in Mexico did not originally believe in the severity of the novel coronavirus; face masks did not start being worn as soon as recommended. Health authorities reported not only that many people were not using face masks but also a large number of people were unable to afford one. As a result, patients who were living in extreme poverty are less likely to survive COVID-19 in Mexico. This is largely due to the fact that the impoverished are more exposed to the virus compared to those who are able to afford to quarantine and avoid exposure.

Demographics

The Mexican government is struggling to give the necessary attention to many who need it most. According to the National Council for the Evaluation of Social Development Policy, or CONEVAL, COVID-19 in Mexico caused a 63% drop in household income. The pandemic has proven that staying home is a privilege that many impoverished citizens do not have. Statistically speaking, 27% of people living in poverty contracted the novel coronavirus, while only 5% of the upper-class contracted COVID-19. This demonstrates the clear relationship between high rates of infection and socioeconomic status in Mexico.

Looking Forward

COVID-19 in Mexico has caused thousands of deaths, and the lack of infrastructure and government initiatives has caused delays in the vaccination process. However, Mexico has received more than 2.7 million COVID-19 vaccines on behalf of the United States. The White House has made what is considered a positive diplomatic step forward in providing Mexico with these doses of the vaccine, and the hope is that even more vaccines will be sent by the U.S.

The NGO Direct Relief has donated 330,000 masks to help relieve the crisis. As well, Direct Relief assisted in importing the 100,000 KN95 masks donated by Academy Award-winning film director Alfonso Cuarón. Many people are benefiting from the action, and the vaccination process is slowly improving in Mexico.

COVID-19 in Mexico has demonstrated how socioeconomic status affects access to healthcare and the ability to protect oneself from the pandemic. However, vaccination has begun and donations of personal protective equipment, or PPE, are steps in the right direction for Mexico’s handling of the novel coronavirus.

– Ainara Ruano Cervantes
Photo: Flickr

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Evidence-based Policymaking Meets Foreign Aid

A group using USAID prepares a work crew for disaster reliefWith respect to the long history of governance, the increase in support for evidence-based policymaking is a relatively recent development. While the call to utilize evidence in policymaking can be traced to the 14th century, advocacy for evidence-based policymaking is recent. Advocates argue for the improved collection, consideration, dissemination and use of evidence at every level of government.

Evidence-based Policymaking in Congress

There is no single body today which defines or guides evidence-based policymaking. Implementations of evidence can be unique but tend to share similar goals and core principles.

Its proponents are numerous. Many organizations have recently launched their own initiatives to begin major pushes for evidence-based policymaking. In Washington alone, the Bipartisan Policy Center, Pew Charitable Trusts, Urban Institute and Brookings Institute are key examples.

When the Urban Institute introduced its Evidence-Based Policymaking Collaborative, it heralded the increasing momentum behind the use of evidence in policymaking — even suggesting the potential for a “golden era” of evidence-based policymaking. In its own words, evidence-based policymaking is about “[using] what we already know from program evaluation to make policy decisions and to build more knowledge to better inform future decisions.”

Evidence Proponents

A number of recent factors have made this change possible today. For instance, in order for policymaking backed by evidence to be possible in the first place, institutions must begin by using high-quality data which enables further analysis. Some contributing changes are computerization and digitalization, which have improved the availability of evidence. Increased investments in rigorous research have made analyzing evidence more fruitful to ultimately enable the evidence process.

The Bipartisan Policy Center launched its own Evidence-Based Policymaking Initiative in 2017 to continue providing policymakers with recommendations. It bases its definition of evidence-based policymaking on three principles: data collection, data analysis and evidence use.

In its suggestions to policymakers, the Evidence-Based Policymaking Initiative recommended that “for the evidence-based policymaking process to become more routine, policymakers must recognize that evidence is an essential and necessary input into the policymaking process.”

Evidence in Federal Agencies

USAID is a strong example of a United States government institution that has made significant strides in implementing evidence into its policies. The agency has implemented evaluative processes to assess and cement the use of evidence.

In October of 2019, Results for America released a press statement highlighting USAID, among nine other federal agencies, for its progress in its use of evidence.

USAID’s 10-year-old Development Investment Ventures (DIV) is a strong example of successful inclusions of evidence in policymaking. The Center for Global Development (CGD), a think tank and research institution, described DIV as comparable to venture capital funds. Both of them aggressively try new and untested approaches. DIV scales up the impacts of programs that are proven to work. However, DIV is unlike venture capital funds in that it seeks social returns rather than monetary gain.

DIV has managed to make remarkable impacts through its programs. Five of its innovations have yielded at least $17 in social impact per dollar invested.

CGD pointed out that the DIV programs that showed the strongest scalability were ones that “had a low cost per person reached; were based on established evidence; included an academic researcher in the design process to help test, iterate, and improve the innovation over time…” While organizations such as CGD continue to see room for improvement in evidence implementations, current evidence-based implementations at USAID are examples of the positive impact.

– Marshall Wu
Photo: Flickr

China and AfCFTA: Mutual Aid Realized

6 members of The African Continental Free Trade Area have a panel discussionThe New Year has brought a host of new possibilities, and in particular, for Africa. The African Continental Free Trade Area (AfCFTA) agreement went into effect on January 1, 2021. The expectations are high for the continent.

AfCFTA is the largest free trade conglomerate in the world; 55 countries signed on to AfCFTA, consisting of 1.3 billion people and a gross domestic product of $3.4 trillion. Moreover, expectations have determined that 30 million Africans will be able to improve their income, leaving poverty behind. The move could remake Africa as a new power for trade, both internally and externally. However, the agreement is contingent on some key workings to reach the full potential of AfCFTA’s reach.

China and AfCFTA

The contingencies are large and focus on infrastructure, policy and eliminating tariff and non-tariff obstacles to improve and enhance continental trade. Some of these contingencies require funding beyond continental borders.

China, the burgeoning world power, is making its presence known in Africa, folding the continent into its monolithic project, The Belt and Road Initiative (BRI). The initiative would give incentives for Chinese investors to support infrastructure, trade and industrialization in Africa.

The BRI pivots on the ancient “Silk Road,” which were the trade routes that flowed in and out of China to the West and beyond. The Han Dynasty established the road in the year 220 B.C.E. It was over 4,000 miles long, connecting the Middle East to Central Asia and eventually, Europe.

The updated Silk Road Economic Belt and the Maritime Silk Road combine to make the BRI. The initiative invests in railways, highways, energy pipelines and benefits from streamlined border crossings. Folding in over a billion African workers and consumers is tantamount to its success. Through the initiative, China and AfCFTA have a great interest in working with each other.

Infrastructure

Africa is receiving funding for infrastructure already. In fact, China is the top investor in the African infrastructure of any foreign country. This is a much-needed economic boost for the continent.

The United Nations Economic Commission for Africa’s chief for energy and infrastructure, Dr. Robert Lising, placed a price estimate on what would allow AfCFTA work. He pointed to estimates the African Development Bank put forth amounting to $130-$170 billion per year.

He stated that “This is a huge amount of money so China’s involvement is definitely welcome… In addition, we all know that there is available capital and equipment linked to China’s involvement in Africa’s infrastructural development.” He also pointed out that China’s competitive involvement would lower prices, benefitting Africa. Additionally, he mentioned that while Western involvement is welcome as well, Western forces often come with conditions, whereas China does not.

He said that “If you want to reap the full benefits of the AfCFTA, you need regional infrastructure development… If you want to close the gap in infrastructure development in Africa, you need to bring in all the partners including China through the BRI.” He reminded others that Chinese involvement in African infrastructure is not a new thing, happening for the last five decades. Citing the completion of Nairobi to Mombasa rail lines and the Addis Ababa to Djibouti line to support his claim.

A Partnership of Need

A round table discussion that the Center for China & Globalization organized and held in December 2019 further supports Dr. Lising’s thoughts. Isabel Domingos, ambassador from Sao Tome and Principe at the conference lays out a plan for mutual benefit. She stated that “China has needs and Africa also has needs; China has potentialities and Africa also has potentialities. We have the African Continental Free Trade Area that can be one place to promote both sides, and find a place to deepen the cooperation between China and Africa.”

While there remain anxieties over the confluence of Chinese involvement in AfCFTA, the consensus is clear; the involvement of foreign capital in AfCFTA is crucial. China stands to gain from its involvement and has the capital available that the African continent needs.

China and AfCFTA are a strong match. As Africa continues on its current trends of globalization, China can heed the call. The entire world will watch the results as a blueprint for international involvement.

– Christopher Millard
Photo: Flickr

Expanding Financial Access in Mexico

Expanding Financial Access in MexicoA good indicator of a country’s overall inequality is the percentage of the population that has access to financial services. Countries lacking financial inclusion suffer from decreased growth and increased income inequality. One of the countries with the poorest financial inclusion for income classification is Mexico. Few Mexican citizens have financial resources at their disposal. This disparity perpetuates rampant economic inequalities in the country’s most impoverished regions. The government has implemented several programs in the past five years aimed at expanding financial access in Mexico.

The Problem

Mexico is a nation burdened by inequalities. With a Gini coefficient hovering around 0.5, Mexico is one of the most unequal upper-middle-income countries in the world. Contributing to the high income and wealth inequality are the massive gaps in access to financial services.

There is an undeniable correlation between financial access and inequality. For example, countries with extensive access to financial services broaden the economic opportunities for both individuals and firms. The World Bank’s Systematic Country Diagnostic for Mexico in 2019 found that expanding financial inclusion can significantly increase income for low-income individuals and populations.

The report also found that low financial inclusion negatively impacts economic inequality, productivity, growth and employment of micro, small and medium enterprises (MSMEs). Mexico is a stark example of a country with low financial inclusion. Only 37% of Mexican adults have bank accounts, which is a much lower number than the average percentage for upper-middle-income countries.

The poor level of financial access in Mexico sinks even lower for rural citizens. Although more than 20% of Mexico’s population live in rural areas, only 7% of rural residents borrowed from a financial institution in 2016. Another demographic hindered by financial access inequality is MSMEs, which provide about 70% of the employment in Mexico. Just 11% of these enterprises use bank credit due to the cost and access issues.

The Programs

To address the troubling lack of financial access in Mexico, the nation’s authorities have introduced several reform programs in the past five years. The Expanding Rural Finance Project received supplemental support from the World Bank. This allowed for greater oversight and more available resources. The Expanding Rural Finance Project authorized 192 participating financial intermediaries to supply 174,000 credits to 140,000 rural producers and MSMEs between 2016 and 2020. The average loans of $1,850 have helped ease rural poverty by providing funds for workers and employers in the area. Furthermore, more than 80% of these credit recipients were women, exceeding the set target of 60%.

In addition, the Financial Inclusion DPF, supports a comprehensive legal and regulatory framework for Fintech in Mexico. Financial institutions that adopt Fintech use technology to enhance financial services and make banking more accessible and effortless. Automated transfers, mobile payments and flexible loan management are some of the many benefits offered by Fintech-associated institutions. The newly implemented framework in Mexico is groundbreaking in the global picture and will increase financial inclusion by expanding convenient financial services.

The Results

Mexico’s programs addressing inequality in financial access have shown several signs of progress. Between 2016 and 2020, the Expanding Rural Finance Project widened financial access in Mexico for impoverished citizens, rural populations, MSMEs, women and youth. It provided hundreds of thousands of credits extending to participating producers. The project particularly helped Mexican workers on the disadvantaged end of income inequality. Of people who received credits, 17% live in communities classified as marginalized by the National Council for Population. The program distributed approximately 76% of all sub-loans in the Mexican states with the highest levels of poverty. About 12% of credit recipients had never borrowed from formal financial institutions. As gender inequality permeates income inequality, 81% of credit recipients from the project were women.

The Mexico Financial Inclusion DPF program also contributed to the expansion of financial access in Mexico. Only slightly more than a year after the program’s initiation, 93 businesses have already requested authorization to operate as Fintech institutions. About 59 of the businesses are electronic payment fund institutions and 34 are crowdfunding institutions. The quick adjustment to Fintech suggests an overarching trend for Mexican enterprises. Many want to benefit from the ease of access and innovation promoted by the Fintech model. The transition will benefit non-financial enterprises and average citizens as well. This is because the Fintech framework provides for faster payment transfers, easier loan processes and more convenient services available for remote residents.

Looking Ahead

Mexico’s glaring discrepancies in financial inclusion have supported ongoing economic inequalities for decades. However, programs administered by the government in the past several years have made strides in the right direction as financial access is widening for disenfranchised groups all over the country. If Mexico continues to expand financial access through credit programs and Fintech innovation, the country will likely see a decrease in economic inequality and reap the benefits of a more egalitarian society.

– Calvin Melloh
Photo: Flickr

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USAID Builds Schools in Pakistani Flood Relief Effort

Pakistani Flood ReliefWhen the Indus River flooded Pakistan in 2010, the effects were widespread and devastating. Among those that were hit hard were Pakistani children whose schools were severely affected by the flooding. It is estimated that the floods destroyed or damaged more than 10,000 schools. Fast forward 11 years later, however, USAID has announced a major milestone in the now eight-year-long Pakistani flood relief project called the USAID-Sindh Basic Education Programme. USAID reports the completion of 106 schools in Sindh, a province stricken by flood damages.

The 2010 Indus River Floods

The Indus River floods in July and August 2010 were a result of massive monsoon rains causing severe flash flooding in Pakistan. The floods were estimated to have damaged or destroyed more than one million homes and affected more than 20 million people in the region. The impact was felt in just about every area of life in Pakistan.

Industries like farming and healthcare were severely hurt by the floods. Farmers were estimated to have lost millions of acres of usable land and more than a million livestock. Additionally, more than 500 hospitals or clinics in the region were reportedly damaged or destroyed.

On top of this, data from UNICEF in 2010 indicated that more than 1.6 million children either saw their schools damaged by floodwaters or converted into shelters. The massive displacement of children even resulted in fears of a rise in militia kidnappings at the time.

In total, the economic impact of all of that damage done by the floods was estimated as a loss of $43 billion.

USAID’s Pakistani Flood Relief

USAID has given more than $159 million toward education relief following the flood, with $81 million of the funding put directly toward the construction of new schools in northern Sindh. The money helped facilitate the completion of 106 schools, with 14 additional schools targeted to be finished by 2023. The schools will help serve more than 50,000 students in Sindh whose schools were affected by the flood.

These new schools have been built with the inclusion of elements like laboratories and computers in order to turn them into templates for the kind of high-quality educational standard that can hopefully be provided to other areas in the country in the future.

The State of Pakistan’s Education System

Despite efforts, Pakistan’s education system still faces challenges. According to UNICEF, just 56% of Pakistani children between the ages of 5 and 16 are currently in school. This means the country has more than 22 million children in this age range out of school, making Pakistan the country with the second-most out-of-school children in the world.

Additionally, significantly fewer children are enrolled in secondary school compared to primary school and significant gaps exist in overall schooling services. Socioeconomic gaps, for example, are prevalent in areas like Sindh where only 48% of the most impoverished children in the region are in school.

In other regions like Balochistan, significant gender gaps have emerged. Only 22% of girls are in school in the region. This reflects an overarching gender problem which can be seen in the disproportionate number of boys compared to girls in the education system as a whole.

Nevertheless, USAID’s newly completed schools as part of the Pakistani flood relief efforts represent the start of positive progress being made in the country’s education system. With each and every effort, Pakistani children are given an opportunity to rise out of poverty.

– Brett Grega
Photo: Flickr

Strides in Renewable Energy in India

Renewable Energy in IndiaThe development of sustainable energy has many benefits for citizens in India. In addition to economic growth, it also creates new job opportunities which can lower poverty rates. In 2017, 10.3 million renewable energy jobs were available globally. Renewable energy in India has the potential to significantly boost the country’s economic standing and lift many out of poverty.

Renewable Energy in India

With the implementation of 160 gigawatts (GW) of solar and wind energy, India projects to create more than 330,000 new jobs by 2022. In 2017, the solar and wind energy sectors of renewable energy have already employed 151,000 people. People living in poverty in rural areas will benefit from job creation and increased energy will provide children with more time to work on their education after dark, increased productivity for families and increased health benefits.

Types of Renewable Energy in India

  • Solar Energy: The Jawaharlal Nehru National Solar Mission (NSM) was created by the Government of India’s Ministry of New and Renewable Energy to develop 100 gigawatts of solar power from grid-connected and off-grid solar energy by 2022. NSM’s implementation of photovoltaic (PV) cells has created more jobs per unit of energy than any other energy source, making it an important factor in lowering unemployment rates in India. Solar energy is most commonly sourced from PV cells that can be installed on rooftops of houses or commercial buildings and absorb sunlight throughout the day.
  • Wind Energy: One of the largest sectors of renewable energy in India is wind energy. India is the fifth-largest wind energy producer and has the potential to grow even larger with a target of 60 gigawatts by 2022. Further expansion in the wind energy industry can be a major source of jobs for both unskilled and skilled workers in India. Wind energy is created in India through the development of wind farms, created through the installation of wind energy generators in rural areas that have ample amount of land. The installation of wind farms in rural areas creates job opportunities for rural citizens living in poverty.
  • Biomass Energy: Biomass has the potential to become a large source of renewable energy in India. Biomass is sourced from municipal waste, solid material and liquid material. India is rich in biomass resources. One of the most successful sources of biomass comes from sugar cane in agriculture and manure from livestock. Farms stand to benefit largely from the implementation of biomass energy development, in turn, benefiting rural people living in poverty.

Continued Development

Though large strides have been made in renewable energy in India, further development could bring significant benefits. India plans to quintuple current wind and solar energy capacity and could potentially become the world’s third-largest economy by 2030.

Renewable energy has improved the lives of many citizens living in India, however, more than 600 million people still use firewood for cooking and many have unreliable energy sources. Expanding renewable energy across India will further improve the quality of lives of citizens and bring many out of poverty through the creation of jobs in renewable energy sectors and increased opportunities for education and training in the sector.

– Simone Riggins
Photo: Flickr

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Inadequate Sanitation In Indonesia

Inadequate Sanitation In IndonesiaCommunities throughout Indonesia are receiving help with sustainable and clean water access. Sanitation poses a significant threat to the health and safety of people in Indonesia. USAID reports that 2.4 billion people worldwide have inconsistent access to sanitation. The organization predicts that nearly 40% of the world does not use safe toilets. This can significantly increase the spread of infection and disease.

Proper sanitation is crucial in preventing the spread of infectious diseases, which are more severe to those living in poverty without access to adequate healthcare. The primary cause of child mortality in Indonesia is diarrhea. Typhoid is also a leading threat to the health of Indonesians. Both diarrhea and typhoid are amplified by inadequate sanitation, poor hygiene and limited water supply.

Water Contamination Spreads Disease

According to USAID, “In Indonesia, one in three people does not have access to a flush toilet, latrine or septic system.” Instead, many Indonesians defecate in the streets, which further compromises the health and safety of people living in those communities. Rivers, streams and runoff are often the only water source for residents of rural areas. Without proper resources for treatment, water can carry diseases that are harmful and even deadly to those who consume it.

Only about 7% of wastewater in Indonesia is treated. As a result, many communal water access areas have contaminated water. In impoverished areas, it is not sustainable for communities to continually purchase bottled water. In the capital city, Jakarta, pollution can be found in 96% of the water. There is also a widespread disconnect from infrastructure in residential areas, leaving hundreds of families without consistent access to sanitation.

With the new challenge of the pandemic, Indonesia is facing the highest fatality rate in Asia as a result of inadequate access to sanitation, which is necessary to fight the spread of the disease. When families are struggling to meet their basic needs for consumption and hygiene, regular hand washing and adequate sanitization practices are not a priority.

Educational and Financial Support

Organizations like UNICEF are supporting the government of Indonesia. They help provide more frequent and safe access to sanitation and drinking water. In emphasizing education and health literacy during primary school, UNICEF aims to get ahead of the problem. “Over the past 25 years, the rate of access to sanitation facilities has nearly doubled across the country, increasing from 35% in 1990 to 61% in 2015,” reported USAID. USAID has also greatly contributed to this cause. In 2015, the organization helped more than 2.2 million Indonesians improve their water supply and provided better sanitation to 250,000 people.

The IKEA Foundation is also fighting the issue by providing microfinance loans to Jakarta for the introduction of pipelines and water access to rural residential areas. Families living in low-income areas are spending a lot of money to purchase water. With the installation of pipelines and clean well systems, sanitary water is becoming more accessible and affordable to those who need it most.

– Ally Reeder
Photo: Flickr