Archive for category: Global Poverty

Key articles and information on global poverty.

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A Boost in International Affairs Budget

International Affairs Budget
A new proposal emanating from the United States Congress titled “Investing in 21st Century Diplomacy” aims to increase the International Affairs Budget by $12 billion in 2022. The proposal, which Sens. Chris Van Hollen and Chris Murphy recently created along with Reps. Ami Bera and David Cicilline, primarily targets a trio of crucial issues that the congressional leaders have singled out for funding.

Pandemic Preparedness and Global Health

One of those issues stems from the global response to the COVID-19 pandemic. Near the onset of the pandemic in March 2020, a study found that over two-thirds of health centers and clinics in Nepal and Bangladesh did not have any face masks. Additionally, countries like the Democratic Republic of Congo (DRC) scored poorly on reviews of preparedness to protect healthcare workers with a noted lack of sustainable response plans cited among other factors in the results.

The effects of the COVID-19 pandemic hit the economies of developing countries particularly hard. In fact, a United Nations Development Programme study found that over a billion people may end up in extreme poverty by 2030 due to the effects of the pandemic. The United Nations did a study to determine the estimate, indicating that the economy lost $100 billion in investments in March and April 2020. This was due to a substantial flood of money pouring out of developing countries.

In light of the lessons learned from the ongoing fight against COVID-19 and its toll on developing nations, the aforementioned congressional leaders have crafted a portion of their proposal to address that lack of worldwide resources dedicated to fighting future pandemics. This takes the form of an over $6 billion increase in global health programs and an over $2 billion increase in funds reserved for global health security among other measures. Furthermore, the proposal lists $500 million of funding for the Coalition for Epidemic Preparedness Innovations, a partnership designed to develop vaccines to prevent future pandemics that the United States did not invest in during the 2019 fiscal year.

Competing with China’s Global Influence

While global assistance like this has undergone debate in the United States, China has become a world leader in foreign aid. China’s lending of $104 billion to developing countries rivals that of the World Bank that is lending $106 billion. The implementation of those funds has led to concerns that China is creating, “unsustainable debt burdens” for some low-income countries. Other countries are criticizing China’s growing influence as an attempt to strengthen the nation’s control over the ideologies within developing countries that have accepting significant aid. This has prompted concerns about the promotion of authoritarian governmental models and the censorship of opposing ideologies there.

The Investing in the 21st Century Diplomacy proposal will increase funding to the Global Engagement Center by $85 million. The Global Engagement Center addresses propaganda-related issues. Likewise, the proposed increase to the International Affairs Budget includes funding aimed at combating corruption in developing nations as well. Furthermore, the proposal of creating a boost in the International Affairs Budget includes a doubling of the investment cap set on the Development Finance Corporation, a government organization mainly dedicated to assisting low-and-middle-income countries with development projects. The proposal details this as a step to provide different sources for foreign nations to receive investments. This is in response to the significantly larger size of the Chinese equivalent to the DFC, the China Development Bank.

Green Investments

The proposal also includes funding earmarked for other organizations committed to helping developing countries, specifically in regard to green initiatives. One of the foremost components of that funding is a recommitment to the Green Climate Fund. This will be in the form of $3 billion. The fund will help find and implement green solutions in developing countries.

The United States Congress has not prioritized green solutions and recovery efforts related to COVID-19. In a report, the U.N. Environment Programme and Oxford’s Economic Recovery Project expressed that “only 18% of announced recovery spending can be considered green.”

The proposed increase in funds to the International Affairs Budget addresses a number of important, pressing issues facing the world today. Hopefully, through the International Affairs Budget, these issues will reduce.

– Brett Grega
Photo: Wikimedia Commons

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Examining USAID Programs in Kenya

USAID programs in Kenya
Former U.S. President John F. Kennedy created the United States Agency for International Development in 1961. Kennedy’s goal was to spearhead the United States’ international development and humanitarian initiatives. Additionally, the highest executive position is the Administrator of the USAID. This position’s responsibilities include executing foreign aid programs under the guidance of the President. Furthermore, the Administrator of the USAID selects members of the President’s cabinet and the State Department. USAID coordinates with different levels of the United States government. As a result, this agency often works closely with the State Department to achieve common goals. USAID programs in Kenya also contribute to the global economy and aid in alleviating global poverty.

USAID’s mission statement is to dedicate itself to the promotion of democratic values in its works and advance freedom and prosperity. As such, USAID is well-integrated into the United States’ foreign policy vectors and gives perspective in improving the lives of many in the developing world.

Mark Green is the most recent non-acting Administrator for USAID since 2017. USAID’s agenda underwent reorientation and Administrator Mark Green’s tenure resulted in the reframing of its definition of foreign assistance. Journey to Self-reliance is a new policy that emerged to reforge all existing USAID policies and strategies.

USAID’s Program Cycle’s policies and decisions reinforced its initiatives. In addition, an evaluative set of processes regarding a structured cycle of self-examination, planning, implementation and re-examination of outcomes helps countries become more self-reliant.

USAID Today in Kenya

USAID programs in Kenya have been making a difference for more than 60 years. Kenya received $540 million in aid from USAID in the 2019 fiscal year. Thus, this ranks Kenya as the fourth most-funded African country. As a result, USAID programs in Kenya provide more than the average $144 million funding that these regions typically receive. The HIV/AIDS sector receives the greatest amount of aid from USAID. It contributes a total of $260 million.

Kenya’s performance scores of self-reliance lag behind the average low and middle-income countries. However, Kenya surges ahead in having an open and accountable government. Yet, Kenya’s safety and security rates at 33 points out of 100. This is significantly lower than the statistical average. Thus, the nation’s lowest-performing index is the poverty rate. Kenya’s poverty rate is a mere 14 out of 100, whereas the statistical average rests at 44.

USAID Programs’ Focuses

USAID programs in Kenya have three primary focuses. First, it aims to effectively implement governmental devolution. This requires devolving the powers of the central government to regional bodies. Second, it aims to strengthen the health and human capacities of Kenyans. Lastly, it has the goal of driving environmentally sustainable economic growth.

Kenya’s economy is the largest and most diverse economy in all of East Africa. It serves as an important trading hub for the African continent. However, agriculture makes up the backbone of Kenya’s economy today. Agriculture provides an obvious pathway for economic development and poverty reduction. Furthermore, agribusiness accounts for roughly 40% of Kenya’s overall workforce and roughly a quarter of its annual GDP.

As an example of the United States government’s integrated approach to foreign aid, USAID’s Feed the Future initiative is currently improving social, business and human health in Kenya by increasing productivity and income. Moreover, its greater agenda is to develop a more effective and sustainable agricultural future.

– Marshall Wu
Photo: Flickr

Digital Green Empowers Poor Farmers

Digital Green Empowers Poor Farmers
World hunger is one of the biggest challenges to overcome in the journey to eradicate poverty. It is impossible for communities to advance into other sectors without access to food. Roughly 690 million people do not have adequate access to food today. However, if information can be readily available and accessible for rural farmers, they could help reduce this number. Digital Green is a company that began in 2006 and aims to reduce world hunger.

What is Digital Green?

Digital Green is an Indian-based company that aids smallholder farmers in implementing better farming practices. It uses a unique software that more conventional organizations do not utilize. However, company co-founder Rikin Gandhi did not always see himself in Digital Green. He graduated from college with knowledge in science and engineering in hopes of becoming an astronaut. Moreover, the way astronauts melded intelligence and courage inspired him.

Gandhi said that he ended up focusing on another group of people who meld intelligence and courage after experiencing rejection from astronaut programs. He focused on the smallholder farmer. Immediately, he knew he wanted to approach things differently. Thus, he teamed up with Microsoft to create Digital Green.

Community Videos

Gandhi believed that the best way for smallholder farmers to improve their practices was by learning tricks from other farmers in the area. However, there was a problem. Many smallholder farmers in India live far apart. As a result, he created a database called community videos. This database is a collection of videos from several farming communities to share their wealth and knowledge.

Community videos are different from YouTube because they specifically target smallholder farmers. Farmers can easily select their desired language and region, and ensure that they are watching content that someone they can identify with produced.

Digital Green has produced more than 6,000 videos relating to farming practices to date. Additionally, the company oversees every video’s production from start to finish, ensuring that the sequence makes sense and that communities find the information relevant. Certain crop yields have soared by as much as 74% after farmers began using community videos.

FarmStack

Digital Green also implemented FarmStack to empower farmers. FarmStack is a platform designed to connect government and non-governmental organizations to smallholder farmers. It allows both groups to upload and download relevant data such as soil conditions and food prices at local markets.

The platform allows for immediate communication and makes sure that farmers receive customized solutions for unusual predicaments. In addition, it ensures that farmers receive relevant data that will help them better manage productivity as well as finances. As a result of the program, farmers’ income has increased and crop failure has decreased.

What is Next for Digital Green?

Digital Green is currently working on projects primarily in India and Ethiopia. COVID-19 has posed new challenges for the organization, but it shows no signs of slowing down. Furthermore, Digital Green hopes to one day reach every smallholder farmer in need. Luckily, the organization has partnered with powerful organizations around the globe to accelerate the process. Some organizations currently partnered with Digital Green include Walmart, The Bill & Melinda Gates Foundation, UKAid and Precision Agriculture for Development (PAD).

Although smallholder farmers only support a small aspect of their community, Digital Green acknowledges that they hold the key to ending world hunger. If all of these small communities connected, knowledge would spread like a wildfire. Eventually, every smallholder farmer across the globe may see an uptick of even 5% in crop yield. This impact would be tremendous.

– Jake Hill
Photo: Flickr

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Japan’s Emergency Grant Aid to Armenia-Azerbaijan

Japan’s Emergency Grant Aid
Armenia primarily controls Nagorno-Karabakh, a portion of land in Azerbaijan. This area experienced a major war conflict. The war has plagued Armenia and Azerbaijan for the past three decades. Additionally, Armenia and Azerbaijan have struggled with humanitarian crises including food insecurity, repairs for local shelters and medical support since 1988. However, the U.S. granted $10 million to humanitarian crises to provide food, shelter and medical supplies to those the conflict heavily affected. Additionally, the European Union provided €3 million in aid for food, clothing for winter and medical supplies. In addition, Japan’s emergency grant aid has helped aid people in Azerbaijan.

According to BBC, Azerbaijan sought to suppress the separatist movement, while Armenia backed it. This led to ethnic clashes and after Armenia and Azerbaijan declared independence from Moscow, a full-scale war ensued. Nagorno-Karabakh remains part of Azerbaijan while still under Armenian control. However, a ceasefire occurred in September 2020 and Armenia and Azerbaijan received additional aid.

Aid to Armenia and Azerbaijan

A study that the country’s Statistical Committee conducted revealed that 23.5% of Armenia’s population was living below the poverty line as of 2018. While much of the population lives below the poverty line, only 1% of the population lives in extreme poverty. However, access to education, security, neglect and freedom of speech factor into what contributes to the impoverished cities in Armenia.

Aid to Armenia’s population can benefit from hospital supplies, winter clothing and food could begin the process of rebuilding Armenia and its people. As a result of the destruction caused by the conflict, many had to flee their homes. Countries provide emergency support to give Armenia humanitarian needs and basic supplies. Furthermore, it can spread awareness to help those in need in Armenia and Azerbaijan. The need for food, shelter and medical supplies is evident.

Japan’s Emergency Grant Aid

Japan implemented a $4.8 million emergency grant aid to help those in Armenia and Azerbaijan in February 2021. Armenia is receiving $3.6 million of Japan’s grant aid whereas the remaining $1.2 million is going towards Azerbaijan. This aid goes toward medical training in six hospitals and supplies medical equipment. Furthermore, there are new hand-washing stations in three elementary schools to ensure safe water access, hygiene kits, renovation repairs to evacuation centers, relief supplies for winter and educational supplies for 15 schools.

The Asian Development Bank states that 5% of Azerbaijan’s population lived under the poverty line in 2018. This country is a developing country facing many issues. Azerbaijan’s healthcare is among the top two priorities in efforts to maintain a well-rounded economy. Budgeting for healthcare has increased by 44.5% since 2019.

Japan’s emergency grant aid of $1.2 million to Azerbaijan goes toward medical equipment for one hospital, access to safe water, relief items for during their winter and food assistance for about 800 people.

– Vanessa Morales
Photo: Flickr

The Rwandan Genocide: Consequences and Yearly Remarks

The Rwandan Genocide
Rwanda. 1994. 100 days. This was all it took for a band of Hutu extremists to commit the Rwandan Genocide, killing just under a million civilians. The 1994 genocide against the Tutsi in Rwanda has prompted yearly remarks around the world. The United Nations sponsors these, discussing the horrific implications of the event. Survivors have come forth to tell their stories as they work to make impacts to prevent genocides in the future.

What Was The Rwandan Genocide?

Two neighboring castes lead Rwanda; the Tutsis and the Hutus. The 1994 Rwandan Genocide against the Tutsi was a power struggle between these dividing castes. Although the Hutus largely outnumbered the Tutsis, with “about 85% of Rwandans,” the Tutsi had been in power for a long time. In 1959, the Hutus overthrew the Tutsi monarchy and civilians fled to neighboring countries. Rwanda remained under the Hutu dictatorship for many years following.

Long thereafter, a group of Tutsi exiles formed a rebel group known as the Rwandan Patriotic Front (RPF). They stormed Rwanda in 1990 and fought until 1993 when both parties agreed upon a peace deal.

However, the peace agreement broke on April 6, 1994, when a plane carrying President Juvenal Habyarimana, a known Hutu, was shot down. Hutu extremists blamed the RPF for the killing. Soon thereafter started the mass genocide that resulted in the killing of over 800,000 people. Government troops backed up the Hutus, many of whom forced civilians and youths to fight and to exercise the slaughters. The RPF stormed the capital, Kigali, on July 4, 1994, to gain back power.

Help from The World Food Programme

The Rwandan genocide forced many civilians into starvation, often unable to provide for themselves or their families. The World Food Programme provided emergency food assistance to those in need, targeting the “fundamental role food plays for vulnerable communities fleeing from conflict.” One Rwandan that the WFP helped is Liberee Kayumba. A survivor of the genocide, she was only 12 when she lost both of her parents and brother, experiencing starvation following the conflict. Now working as a monitoring officer for the Mahama Refugee Camp organization, she helps others suffering from food insecurity.

On the WFP’s Website, Liberee tells her story. She says that the memories from the genocide helped motivate her to want to help people in need. Liberee remembers how food availability was the main problem after the genocide for her and other survivors. Therefore, she has exact memories of the meals the WFP distributed, which she thinks saved her life.

The United Nations Conducts The International Day of Reflection

The U.N. has mandated an information and educational outreach programme to help survivors and others cope with the ramifications of the Rwandan Genocide and their resulting losses. This program emerged in 2005 with the main themes of preventing genocide and supporting survivors. Around the world, events such as “roundtable discussions, film screenings, exhibits and debates” occur yearly.

The slogan of 2020’s event was International Day of Reflection. It marked the 26th anniversary of the genocide, with a virtual observance for all to join in on. Multiple officials and survivors made sure to show up, including Jacqueline Murekatete. She is a lawyer, human rights activist and founder of the nonprofit organization Genocide Survivors Foundation. Murekatete lost her entire family in the 1994 Rwandan Genocide when she was only 9 years old.

The U.N.’s yearly observance reminds us to reflect on past events and recount what we can do to promote resilience and growth among countries facing hardships. Those this horrific event impacted have the chance to mourn and reflect, looking toward the greater good as individuals strive to create a better future for all.

– Natalie Whitmeyer
Photo: Flickr

The Process of Improving Bank Access in Afghanistan

Bank Access in Afghanistan
Bank access in Afghanistan is a step toward financial inclusion for the rural poor. According to Jan Chipchase and Panthea Lee’s research on the nascent mobile-phone-based financial services that were available in Afghanistan in 2010, theft and bribery plagued the banking system. Person-to-person transfers were not widely available until the creation of the M-Paisa mobile money transfer service. Roshan launched the M-Paisa mobile money transfer banking in Kabul in 2010 when 83 bank accounts existed per 1,000. Through this service and other programs, improvements in the availability and quality of bank access in Afghanistan have been a major contributor towards reducing income inequality and poverty.

Gradually Improving Access

With limited credit available, Afghans were hiding money at home under the mattress, and forms of money ranged anywhere from banknotes to gold jewelry to livestock. The rural poor did not trust the banking system, and the use of the word “Paisa” helped to make the service seem more trustworthy, although it posed access challenges for the rural poor. By 2014, banking access improved for 40% of Afghanistan’s population, with a 7% increase in the availability of financial services. However, access to credit was still out of reach to the rural poor as most of the banks were located in Kabul province, an urban area. This made it more difficult for rural people to get loans to start businesses.

In 2015, a project to bolster bank access in Afghanistan made a step toward financial inclusion for the rural poor with the start of the Afghan Rural Enterprise Development. The project sought to integrate rural agricultural communities into the economy. Employment opportunities emerged in poor rural villages by the creation of savings and enterprise groups along with loan associations. According to The World Bank, the rural poor received assistance in building their own businesses, which increased the value of trade, ensuring new opportunities. This created access to credit through internal lending, which focused on small and medium-sized enterprises, or SMEs. This program was so important because it targeted people who traditionally could not access the banking system.

The Reason it Matter

As of November 2019, more data exists to support the successes of bank access in Afghanistan that The United Nations Economic and Social Commission for Asia and the Pacific published. The goal of the report was to assess the status of financial inclusion for all adults in Afghanistan age 15 to 64 including women. Financial inclusion in a “broad range of quality and affordable financial services including but not limited to account, payment, saving, and credit provided by formal financial institutions in a fair, transparent, and sustainable manner.” According to this presentation, 15,000 bank accounts exist per 100,000 adults, and in 2021, projections determined them to be 20,000. Expectations have determined that mobile money accounts and accounts that women hold will also grow during the same period. Although the success of banking the unbanked in Afghanistan has been slow, steady progress has occurred toward financial inclusion of the rural poor and women.

It is clear that bank access in Afghanistan and credit is allowing the rural poor in Afghanistan to do better financially. However, according to the World Bank Afghanistan, “the COVID-19 crisis will have a serious and sustained impact on Afghanistan’s economy. Recovery is expected to take several years, with new investment constrained by political uncertainties, continued insecurity, and questions around ongoing international support.” It is important to maintain international support for improving banking access to preserve opportunities for Afghanistan’s rural population.

– Kathleen Shepherd-Segura
Photo: Flickr

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India’s Foreign Aid Explained

India's Foreign Aid
The Republic of India receives millions of dollars each year in foreign aid. This money goes toward ending poverty and improving living standards. However, as India develops and modernizes, the government has started to lend a helping hand to poorer nations across the world. Many see India’s foreign aid as both a tool for diplomacy and an act of good faith. As in the words of India’s Development Partnership, its approach to foreign aid is, “shaped by India’s struggle for independence and solidarity with other colonized and developing countries and the inspiring leadership of Mahatma Gandhi…” The nation is transitioning from a recipient to a donor, as the nation often gives more in foreign aid than it receives.

By The Numbers

The Indian Government allocated $1.32 billion for foreign aid in its 2019-2020 budget year (around 0.3% of the budget). This amount follows a trend of India drastically stepping up its foreign aid over the past decade. The budget went from around $500 million in 2010 to a peak of $1.5 billion in 2015. Despite a three-year slump in funding, the central government is now stepping back up to the plate. The main focus of India’s foreign aid centers around the development and modernization of its recipients.

Most of India’s foreign aid goes to countries in Asia and Africa, as it seeks to improve relations with its neighbors and assert its global presence. The nations India is providing aid to include Myanmar ($56 million), Bangladesh ($24.5 million) and Bhutan ($392.7 million). Aid that these nations receive has the goal of promoting regional stability and creating higher living standards. The Indian Government has also taken more interest in Indian Ocean countries such as Mauritius ($161 million), Sri Lanka ($35 million) and The Maldives (~$81 million) to increase Indian presence in the Indian Ocean.

How India’s Foreign Aid Helps

India’s foreign aid goes to a variety of projects such as infrastructure, agriculture and energy. The nation has invested billions in infrastructure projects in nations like Nepal and Afghanistan, such as hydroelectric plants, dams and schools. Famously, India and Afghanistan finished the Salma Dam, renamed the Afghan-India Friendship Dam. The Dam cost India around $300 million and provides hydroelectric power and irrigated farmland to the surrounding area. Additionally, India gave millions in foreign aid to Caribbean nations to improve their renewable/clean energy sectors that combat pollution and environmental challenges.

India is also heavily active in humanitarian efforts and disaster relief, frequently giving out loans, medical supplies and other types of assistance. The Brookings Institute has even called the nation “The Neighborhood First Responder,” helping with disaster relief in Sri Lanka, Afghanistan and Myanmar. Humanitarian aid has gone to nations like Fiji after Cyclone Winston hit the nation in 2016. Recently, India has helped combat the COVID-19 pandemic through monetary aid, donating food and distributing vaccines. Brazil, which faces a vaccine shortage, received 2 million doses from the Indian government.

Indian-US Relations

India is a prime example of how U.S. Foreign Aid benefits all sides. Nations like the United States have invested heavily in India and continue to help the government combat problems that plague the nation. As a result, India and the U.S. are now close allies and often cooperate on shared goals such as combating environmental challenges and ending extreme poverty. The two nations also cooperate with each other in international organizations like the U.N. and IMF. Both nation’s economies benefit from a strong India, with bilateral trade totaling around $149 billion. A diverse array of U.S. businesses operate in India, from energy and infrastructure business to ones involving technology and entertainment.

– Malcolm Schulz
Photo: Flickr

The Use of Soccer to Combat Poverty in Belize

Soccer to Combat Poverty
A 5-year-old boy named Alex* stood on the dirt patch in San Pedro, Belize, and punched a fellow soccer player. He had caused a lot of fights in the previous weeks. Katherine Lord, a volunteer with More Than Fútbol, pulled him aside. Lord had just begun running a soccer extracurricular program for The Holy Cross School, the poorest school in Ambergris Caye. She explained to him that the school would not tolerate violence at practice. She told him that he was a natural leader, so if he chose not to fight anymore, he could be team captain. In just a few weeks, Alex began helping her run drills, organize his teammates and even break up fights. For Alex, this after-school soccer program offered a safe space to play and have fun. For years, More than Fútbol has been effectively using soccer to combat poverty in Belize.

More Than Fútbol

Founded by Ali Andrzejewski in 2008, More Than Fútbol is using soccer to combat poverty in Belize. Every year, the organization sends volunteers to San Pedro, Belize for a few weeks. After these few weeks, everyone but one volunteer returns home. This volunteer runs the soccer program and teaches empowerment classes at The Holy Cross School. More Than Fútbol also works in Nicaragua.

In spring 2018, Lord volunteered to stay in San Pedro for five months. She volunteered with More Than Fútbol for four years prior to living in Belize. While there, she taught empowerment, English and math classes and ran the after-school soccer program.

Child Poverty in Belize

In Belize, 58% of children live in poverty. UNICEF estimates that 60% of children do not have access to at least one of proper drinking water, sanitation, housing, nutrition or education. One study from UNICEF found that 19% of children in Belize experience growth stunting due to poverty and 27% of schools do not have clean water.

Poverty in San Pedro, a town in Ambergris Caye, is a serious problem. Many students, like Alex, who attend The Holy Cross School do not have access to electricity or running water at home. Sewage and trash line the streets so acutely that wood boards must cover the roads so that no one steps in the waste. Despite the fact that Ambergris Caye generates about 18% of the country’s GDP from tourism, the island does not receive most of this money. This makes the residents unable to escape poverty.

The Link Between Poverty, Stress and Violence

Poverty, stress and violence all correlate. Children in poverty are seven times more likely to self-harm and become involved in violence. According to the American Psychological Association, “poorer children and teens are… at greater risk for several negative outcomes such as poor academic achievement, school dropout, abuse and neglect, behavioral and socioemotional problems, physical health problems, and developmental delays.” Children in poverty are more likely to have emotional or behavioral concerns such as anxiety, depression, aggression, conduct disorder, difficulty getting along with others and self-esteem issues. Children in poverty are also more likely to experience violence from a young age, which predisposes them to violent behaviors in the future. Parents living in poverty may also experience chronic stress or depression, which can cause them to parent in more severe ways, leading to worse socioemotional outcomes for children.

In Belize, estimates determined that 65% of children (ages 1-14) experience physical and psychological abuse or aggression at home. The Holy Cross School estimates that 90% of the children attending experience abuse from caregivers either physically, psychologically or sexually. Lord explained to The Borgen Project that “there’s a lot of fighting, especially among lower-income people. And it’s just because that’s how kids are treated by their parents. And it’s… I don’t want to say cultural– maybe systematic…. And so the kids would always be… fist fighting with each other and throwing rocks at each other.”

How Sports Can Reduce Stress and Fight Against Poverty

Despite the fact that the children often fought, Lord realized that soccer helped lower their aggression, improve their behaviors and their levels of happiness. Her first-hand experience influenced her to believe in the power of using soccer to combat poverty in Belize. The World Bank has found that empirically speaking, sports can help increase educational outcomes, empower players and encourage leadership. Playing sports can also alleviate anger and frustration and promote happiness.

Furthermore, sports can positively impact children’s development and goal-making. According to the University of Edinburgh, sports “matter because they are proven to boost educational capability, confidence, mental health and other learning skills that help not just education levels but working and social lives.” Sports can also benefit international development.

Other Organizations

Lord’s experience volunteering with More Than Fútbol is unique. However, there are many other organizations working to combat poverty in Belize and other parts of the world through soccer. For example, Street Football World works to empower communities and build soccer programs and stadiums. Love Futbol finances stadiums and supports the surrounding community. The work of these organizations is invaluable because sports can help empower children emotionally and socially. Like Katherine expressed to The Borgen Project, no matter the environment the kids come from, allowing them a space to grow and feel safe and supported can positively impact their moods, behaviors and self-confidence. Overall, it is clear that using sports to combat poverty in Belize is crucial because they can change children’s lives for the better and act as a source of international development.

* Name of Alex changed for privacy

– Sophie Shippe
Photo: Flickr

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Fighting Poverty in the Cocoa Industry

Poverty in the Cocoa Industry
Tony’s Chocolonely, a chocolate company in the Netherlands, emerged in 2005. When police arrested a journalist by the name of Teun van de Keuken, he asked to go to prison. He hired a lawyer to help send him to prison and asked a judge to convict him of driving child slavery. However, the judge would not convict him, stating that his crime was simply eating a bar of chocolate. Keuken was not satisfied with this decision and ventured to create a chocolate company that would both combat child labor and poverty in the cocoa industry.

A Better Idea

Instead, Keuken decided to try to stop child slavery from the inside. He wanted to do this by setting up a chocolate company with the mission of ending child slavery in general by fighting poverty in the cocoa industry. Since 2005, the company has grown, and with it, so have its missions. The brand is now the Netherlands’ favorite chocolate company and it has an international reach as many supermarkets in Europe sell its products. Additionally, it is inspiring cooperatives and chocolate companies across the world. Here are Tony’s Chocolonely’s five guiding principles.

Tony’s 5 Guiding Principles

  1. Traceable Cocoa Beans: The company does not buy large quantities of anonymous beans, but rather trades directly with farmers and cooperatives so that it knows the environmental and social conditions in which the beans grew. The company has implemented Tony’s Beantracker so that it knows exactly where the cocoa for its chocolate comes from. This is part of its transparency to ensure conscious consumption.
  2. A Higher Price: The company pays a higher price for its cocoa to ensure that cocoa farmers earn a living wage, which is enough to feed their families and run their farms. This has involved paying a premium; as the cocoa market can be so volatile, Tony’s pays farmers the same amount, even when prices drop. This helps ensure that farmers have enough funds to maintain their livelihoods. In 2019, cocoa prices fell and Tony’s increased its premium from $375 to $600 per tonne to ensure the security of farmers’ income.
  3. Strengthening Farmers: Tony’s Chocolonely is working to professionalize farming cooperatives. If farmers work together, they will be more empowered to structurally challenge the inequality in the value chain. When working together, farmers can stand up to middlemen in the production chain, negotiate better prices when buying production resources as a collection and raise concerns. Tony’s facilitates meetings where farmers can engage and raise concerns, empowering farmers to speak up.
  4. The Long Term: Normally in the cocoa industry, a buyer seeks out the cheapest price. However, Tony’s has committed itself to sign five-year contracts to tie it into longer deals. The longevity of these deals allows the company to build relationships with the farmers. It also ensures farmers a stable income for five years so that they have a steady source of income and can feed their children and pay the bills.
  5. Improved Quality and Productivity: Tony’s invests in agricultural knowledge and skills related to growing cocoa and other crops. The company wants to help farmers increase their crop productivity to give them more stability in sales, but also in subsistence agriculture so they have the crops they need to survive nutritionally. To help here, Tony’s works with Soil & More to help farmers develop and source compost and organic fertilizer.

Walk the Walk, Talk the Talk

Tony’s Chocolonely leads by example in how it is fighting poverty in the cocoa industry. However, it has extended its mission to raise awareness and inspire others to act in the same way. It is spreading its message to more people every day in an effort to acknowledge the problems of slavery and poverty in the cocoa industry so that citizens can be more conscious consumers. Such awareness promotion is having an effect; in the Netherlands, where the company is based, 75% of people now know about the problems of child slavery and poverty in the cocoa industry and say they will try to be more ethical consumers.

Advocacy

Tony’s Chocolonely’s advocacy aims to inspire others. This is evident in its partnership with the Netherlands’ largest supermarket Albert Heijn, which has worked to make the chocolate it sells slave-free. In 2019, Tony’s Chocolonely also broke into the markets of the U.K. and Germany.

The company is aiming to pressure big chocolate producers like Nestle and Cadburys to eliminate child slavery from their practices. Tony’s Chocolonely wants to get to that tipping point where ethical practice becomes necessary for business and would like this to occur either through law or by requirement. In fact, it would like it to be necessary for businesses to have a license to operate in the cocoa industry.

– Lizzie Alexander
Photo: Flickr

IMF’s Role in Preventing a Post-Pandemic Debt Crisis

Post-pandemic debt crisis
With the 2020 onset of the COVID-19 pandemic came a drastic slow in economic activity and collapse in government revenue, prompting a widespread increase in both government and private debt levels. Currently, at the beginning of 2021, with no concrete prediction for the end of the COVID-19 pandemic, businesses and the private sector continue to accumulate great foreign currency debt. There is a steady increase in government loans for funding and there has been at least a 20% reduction in 2020 remittances from global citizens and diasporas. Developing nations report skyrocketing borrowing needs that are usually that advanced economies can usually only manage. Additionally, central bank purchases of corporate bonds to boost the money supply of local firms have stifled the debt ratings of local firms in emerging markets and developing economies. As a result, our world is facing rising budget pressures, which a wave of sovereign debt downgrades that are likely to lead to a post-pandemic debt crisis are accompanying.

Context and the Role of the IMF

In comparison to the end of 2019, in addition to already unusually elevated figures and debt distress, expectations have determined that 2021 debt ratios will increase by 20% GDP in advanced economies, 10% in emerging market economies and 7% in low-income economies. Unfortunately, the emerging and developing world have much smaller borrowing capacities, and so for some, a post-pandemic debt crisis appears imminent.

In the past, debt crises have set the global economy into long-lasting instability. In order to prevent such an economic downfall on top of a global health crisis, many of the leading international organizations such as the International Monetary Fund (IMF) have prepared to help keep nations afloat. While the IMF has provided over $30 billion in emergency funding to its member countries in a response to the pandemic, it has also given direct attention to implementing measures that contribute to debt-service relief. Here are some of these measures.

4 Measures to Contribute to Debt-Service Relief

  1. Catastrophe Containment and Relief Trust (CCRT): Undergoing establishment in 2015 as a response to the Ebola outbreak and receiving modification in March 2020 for the COVID-19 pandemic, CCRT allows the IMF to provide grant funding for debt relief to the poorest and most vulnerable nations that a natural disaster or public health crises have hit. The purpose of the CCRT is to aid eligible low-income member countries to meet the balance of payment needs that disasters create. This stops the reassigning of resources to debt service, preventing a post-pandemic debt crisis.
  2. Debt Service Suspension Initiative (DSSI): In a collaboration between the IMF Managing Director and the President of the World Bank, a call emerged for the bilateral creditors to suspend debt service payments from the poorest member countries until the end of 2020, extended to June 2021. Accepted in April 2020, this debt suspension allows 73 low and lower-middle-income countries to temporarily receive relief from their debt service payments. In addition to releasing the countries’ resources to COVID-19 relief, this initiative prompted the International Institute of Finance (IIF) to also call for private-sector creditors to grant debt payments forbearance to their debtors in a similar way. Many private firms have volunteered to aid in debt relief as a result.
  3. Short Term Liquidity Line (SLL): With the increase in global uncertainty, the IMF has established a short-term liquidity line (SLL) with the unique design of being a liquidity backstop for its member countries who have superior policy and fundamentals, but are in need of increased immediate liquidity needs as a result of the external shocks that came with this global pandemic. This liquidity line has a lower cost structure than other typical IMF lines of liquidity such as the Flexible Credit Line (FCL). This allows for a country to retain cost savings relative to reserves, and benefits related to lower yields on public debt.
  4. Capacity Development: In addition to its financial support, the IMF is also offering real-time policy guidance and capacity development to more than 160 of its 190 member countries. This advice is for specifically navigating debt management strategies, cash management, financial supervision, cybersecurity and economic governance through the pandemic. The IMF has collaborated with tax administrations and budget officers to restore and support halted or slowed business operations. It has also launched online learning platforms available to government officials, members and the general public for the widespread reach of solutions to aid in economic recovery during and post-pandemic.

Cause for Optimism

With the measures above, as well as the collaborative effort of the entire globe, according to the IMF Managing Director Kristalina Georgieva, “the global economy is beginning to climb back from the depths of the crisis, but this calamity is far from over.”

Thankfully, the IMF continues to show its commitment to providing financial support, capacity development and debt relief, especially for its poorest, most affected and vulnerable member countries in this unprecedented time, as the world works to stave off an impending debt crisis.

– Rebecca Harris
Photo: Flickr