Archive for category: Global Poverty

Key articles and information on global poverty.

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Education in Norway: Free Tuition Eradicates Poverty and Inequalities

Education in Norway
Public universities in Norway offer free tuition for all students, no matter their country of origin. These universities also offer high-quality education even though it has no cost. This has led students from around the world to seek an education in Norway.

Education in Norway involves the idea that all people should be able to receive a high-quality education, regardless of their socioeconomic status and background. This stems from Norway’s need for people with professional skills. Offering free education to all students provides them with the employees that they need.

Structure of Higher Education in Norway

There are four types of higher education in Norway. The first is a university college degree, which would allow those who receive one the ability to earn a bachelor’s degree. Its length is 120 ECTS, which are credits. The second is a bachelor’s degree, which is 180-240 ECTS. The third level is a master’s degree, which is 120-300 ECTS. Lastly, a Ph.D. is 180 ECTS and is the highest level of education. Many universities offer one-year programs, supplementary programs or short programs, which can be the basis for a branch of professional study. For example, some students choose to take part in these programs for a subject of professional studies, such as psychology.

Norway has also implemented a new system for degrees that follow the 3 + 2 + 3 pathway of a bachelor’s degree, master’s degree and Ph.D. This system has made it easier for international students to study in Norway and maintain their qualifications in other countries.

Results of Norway’s System

People in Norway who have a college education are more likely to get a job and earn a higher salary after graduation. Adults with a bachelor’s degree earn 13% more than upper secondary graduates. Findings determined that adults with a bachelor’s degree participated in cultural and sporting activities more often. There is a 36% difference in participation between those with secondary education and those with tertiary education. As a whole, this system sets an example for other countries as it has a positive impact on the economy and individual citizen’s lives. Pursuing higher education is an influential decision that can shape the course of a person’s future.

Effect on Poverty Rate

One of the most beneficial results of free tuition is the increase in the college graduation rate. Many students struggle with earning enough money for their entire tuition. Therefore, they often can only attend part-time so that they can accommodate a job, or they drop out because they cannot afford the fees. Free tuition completely eliminates this problem and allows students to focus entirely on their studies.

Free education in Norway attracts more people to colleges, especially public universities. Many people globally do not even apply for college because they know that they would not be able to afford it. However, free tuition would give people the chance to attend. It is also difficult for some people to secure loans for their education, especially if tuition is expensive. Private lenders may be hesitant to give that much money to a young student since they are unsure if they will be able to pay it back. Free education stops students from having this worry and eliminates the possibility of crushing loan debt after graduation.

Lastly, free college in Norway ensures that the country’s citizens have more education. As more people become qualified for high-skilled jobs, they may have access to higher-paying careers. As a result, the wealth gap could decrease and lift people out of poverty.

– Miranda Kargol
Photo: Flickr

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What Exactly Is Happening in the Northern Triangle? 

The Northern Triangle
Latin America is in a vicious circle of crime, poverty and corruption. High crime rates thwart economic opportunities and crime rates push people into poverty, all cumulating into corrupt leaders who use the pain for their power and self-interest. Nevertheless, nowhere is crime more prevalent than in the Northern Triangle.

The Northern Triangle is region in Central America that includes Guatemala, Honduras and El Salvador. It has experienced the worst problems such as poor economic growth, rampant gang violence and political corruption. This three-prong nightmare has fueled an estimated 265,000 people toward the Southern U.S. Border and will continue to grow into the foreseeable future. While some do attempt to find safety in Europe and elsewhere in South America, others take the risk and traverse their way to the U.S-Mexico border, where they risk entering the country illegally. Others surrender to U.S. border patrol and seek asylum. However, it is unlikely that they will receive asylum. On average, only 13% of individuals receive asylum and experience integration into the United States.

Gang Corruption

In 2017, a survey asked the people in El Salvador, “who runs the country?” About 42% of respondents said “Delincuencia/Maras.” For non-Spanish speakers, this translates to gangs, like MS-13.

These answers have visible ramifications that strike at the core of the government. Governments in the Northern Triangle are weak, and the people know this; the gangs know this. People understand the country’s power lies in gangs’ hands, not in the government’s.

For example, in 2012, the Salvadorian government agreed to sign a truce with the criminal organizations to address skyrocketing homicide rates. The profoundly unpopular legislation did lower the homicide rate but the people still had to continue to pay gangs. Tactics like homicide and racketeering are not the only ways these organizations flex their might.

Throughout the Northern Triangle, gangs rely on drug and human trafficking, money laundering, kidnapping and theft to export their criminal enterprise well beyond the Northern Triangle. Issues in the Northern Triangle are not just an inter-state problem but also a problem for the entire Western Hemisphere.

Governance Problem

Northern Triangle nations have made some progress when it comes to corruption. But the total damage that such corruption caused is still in the billions: $13 billion to be precise.

In 2006, Guatemala successfully combated corruption when it appealed to the U.N., which established the International Commission Against Impunity in Guatemala (CICIG). This independent body investigates the infiltration of criminal groups within state institutions. Such an organization resulted in the conviction of hundreds of officials and reduced the homicide rate.

In El Salvador, in 2019, the country created its own independent body called Commission against Corruption and Impunity in El Salvador (CITIES), which could yield the same results as CICIG. Over in Honduras, the hopes of establishing such independent oversight do not seem to be gaining the same traction. After the resignation of President Lobo Sosa in 2013, an investigation into the Honduran Institute of Social Security revealed a scandal that cost the people over $200 million. It also implicated President Orlando Hernández, who admitted to unknowingly using some of the money to fund his presidential campaign.

Unlike Guatemala and El Salvador, the Honduras legislature rejected a proposal to create its own CICI. Instead, it created Support the Fight against Corruption and Impunity in Honduras (MACCIH). Although intended to fight corruption, it does not have the same autonomy as CICIG and CITIES. MACCIH is not autonomous and cannot investigate Honduran Public Ministry. Instead, it relies heavily on its relationship with the Attorney General and Congress, which could shield the people committing corruption. This inability to pass support for CICIH instead of settling for MACCIH might be signaling that the $200 million white-collar crime is the beginning of a giant iceberg.

A Path Forward

In Washington DC, support exists for CICIH and CITIES. Congresswoman Norma Torres and others released a statement in 2019 supporting these institutions. Reinstating the CICIG and implementing the same structure in CICIH and CITIES would stop corruption. This would allow the state to use its monopoly on violence to fight crime and allow positive economic growth. In April 2021, the State Department announced $740,740 in available funding for “competition for organizations interested in submitting applications for projects that empower civil society to combat corruption and protect human rights.”

– Diego Romero
Photo: Flickr

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The Success of the Global Polio Eradication Initiative

Global Polio Eradication InitiativeMost think of polio as a disease of the past, eliminated from the world through scientific advancement. However, the disease remains present in some countries and runs the risk of spreading again if it is not contained. In the words of Ban Ki-moon in 2012, former Secretary-General of the United Nations, “Wild viruses and wildfires have two things in common. If neglected, they can spread out of control. If handled properly, they can be stamped out for good. Today, the flame of polio is near extinction — but sparks in three countries threaten to ignite a global blaze.” The Global Polio Eradication Initiative (GPEI) seeks to finally eradicate polio throughout the world.

The Global Polio Eradication Initiative

It is a truly global project, led by a partnership between the World Health Organization (WHO), the U.S. Centers for Disease Control and Prevention, UNICEF, Rotary International, the Bill & Melinda Gates Foundation and Gavi, the Vaccine Alliance. Furthermore, the Initiative involves 200 countries around the world. The Initiative started “in 1988 after the World Health Assembly passed a resolution to eliminate polio.” Over 33 years, the Initiative has secured more than $17 million worth of contributions from donors and financing.

The Global Polio Eradication Initiative has a well-developed and comprehensive plan which has produced numerous successes and lays out a roadmap to completely eradicate polio. One goal is integration. The GPEI seeks to integrate national governments’ vaccination plans with the polio vaccine, allowing children to get the polio vaccine as part of national immunization schedules. Enhanced integration also includes joint delivery of the polio vaccine with other vaccines, integration of polio surveillance with surveillance of other diseases and harmonizing data systems.

Routine vaccination of children is the crucial part of the plan, along with supplementary vaccination when needed. Areas that are most susceptible to an outbreak often receive supplementary vaccinations in targeted campaigns or through National Immunization Days.

Polio Success Stories

The success of the Global Polio Eradication Initiative since its founding is undeniable. The GPEI estimates that the global incidence of polio has decreased 99.9% since its inception. Polio efforts saved more than 1.5 million lives and prevented 16 million people from polio-induced paralysis. In addition to this, the GPEI administered more than 2.5 billion polio vaccines to children across the world.

Africa is a shining example of the GPEI’s success in eradicating polio. Even after the development of the polio vaccine in 1954, the disease remained endemic for decades and the continent struggled to track cases and vaccinate children. Around 1996, wild polio paralyzed 75,000 African children a year. The GPEI helped to coordinate cooperation between African national leaders and multinational NGOs, leading to greater tracking and quick responses to outbreaks.

As part of the Kick Polio Out of Africa campaign, the GPEI and other contributors provided nine billion doses of the oral polio vaccine and vaccinated 220 million children every year. Thanks to this work, Nigeria became the only country where polio was still endemic by 2016. In 2020, after four years without a polio case, the GPEI declared Africa polio-free. The elimination of a highly contagious and dangerous disease is a remarkable success story.

Remaining Countries and At-Risk Countries

While it is near eradication, polio remains endemic in Afghanistan and Pakistan. While concerning, there were less than 30 reported cases of the disease in these countries in 2018. Children miss out on coverage for polio in Afghanistan and Pakistan for various reasons, including a lack of infrastructure and an unstable political situation. Still, the Global Polio Eradication Initiative continues to vaccinate children, provide surveillance of the disease and work to develop new vaccines, diagnostic tools and antiviral drugs.

The failure to eliminate or contain polio completely could lead to a resurgence. If not contained, this could lead to 200,000 or more global cases a year within 10 years. The GPEI, in support of the governments of Afghanistan and Pakistan, works extensively with leaders in the countries to vaccinate children and provide teams of volunteers.

Children need multiple doses of the vaccine for effective prevention and vaccinations must be widespread in order to prevent any community transmission. For this reason, the GPEI has identified five main at-risk countries that are vulnerable to outbreaks and require greater surveillance:

  1. China
  2. Indonesia
  3. Mozambique
  4. Myanmar
  5. Papua New Guinea

Approaching the Finish Line

The Global Polio Eradication Initiative has had major successes so far and is nearly at the finish line of eradicating polio from all nations of the world. Unprecedented global cooperation and collaboration have been the driving forces behind its achievements. Global collaboration is integral for addressing all aspects of global poverty.

– Clay Hallee
Photo: Flickr

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Leaders Tackle Plastic Waste in Indonesia

Plastic Waste in IndonesiaPlastic waste in Indonesia is a significant problem but the government and other actors are now taking action to address it. Indonesia’s plastic waste problem causes multiple environmental and economic issues, which exacerbates poverty. New measures and efforts could help get the country on the right track and improve the prospects of many.

The Plastic Waste Crisis

Indonesia is currently dealing with a waste crisis both on land and in the oceans surrounding the country’s islands. Indonesia is the second-largest contributor to the abundance of plastic waste in the ocean. This waste has harmful economic consequences for the country and its people.

Indonesia currently produces 6.8 million tons of plastic waste per year, with only about 10% of it ending up in recycling centers. About 625,000 tons of annual plastic waste ends up in the oceans. Landfills are typically in very close proximity to communities, leading to toxic wastewater seeping into nearby farmland and hindering the growth of crops.

This also flows into rivers, impacting the livelihoods of those who depend on the river’s water. The fishing industry also suffers from the impact of plastic pollution in the oceans as marine life is affected. Viral videos of trash-choked beaches in tourist destinations like Bali also alarm the tourist industry, a huge boon for Indonesia’s economy. There is concern about the potential impact of this excessive pollution on tourism. Fortunately, the issue has received acknowledgment and there are plans to address the problem of plastic waste in Indonesia.

Individual and Community Action

Individuals, groups and the government are stepping up to end and mitigate the plastic waste crisis in Indonesia. Awareness of the problem is the first step. Local Indonesians have played a significant role in starting movements and increasing awareness.

For example, Melati and Isabel Wijsen established the environmental nonprofit Bye Bye Plastic Bags when they were just 12 and 10 years old. Bye Bye Plastic Bags has become one of the largest environmental nonprofits in Bali and is helping to educate children on the environmental harm of plastics.

Another individual, Mohamad Bijaksana Junerosano, founded the social enterprise Waste4Change. It educates the populace on sorting and sustainably managing waste.

Community cleanup initiatives have also become popular recently. Beach cleanups are simple and effective ways to get people involved. In August 2018, more than 20,000 people mobilized in 76 locations across Indonesia for a one-day beach cleanup that also raised awareness of the waste crisis.

Government Action

Both local and national levels of government have taken the most important steps to end the crisis of plastic waste in Indonesia. The island of Bali banned all single-use plastics at the end of 2018. The capital of Jakarta also banned single-use plastic bags in its shopping centers and street markets in 2020.

Indonesia’s national government has rolled out a very ambitious plan to end the plastic waste problem. It aims to minimize marine plastic waste by 70% by 2025 and be entirely rid of plastic pollution by 2040. Indonesia created five action points to make it easier to meet these overall goals:

  • Reduce or replace plastic use by avoiding single-use plastic packaging
  • Rethink the designs of plastic products and packaging to allow for multiple-use and recycling
  • Double the current plastic waste collection of 39% to 80% by 2025
  • Double current recycling capacity by investing in infrastructure capable of processing an additional 975,000 tons of plastic annually
  • Develop or expand on proper waste disposal infrastructure that can process an additional 3.3 million tons of plastic waste annually

Though reducing plastic waste in Indonesia and its oceans is a challenge, ordinary people and the government of Indonesia are taking proactive steps. These efforts will have a positive impact on livelihoods, the economy and the health of people. The future looks bright for a cleaner Indonesia.

– Clay Hallee
Photo: Flickr

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Mali and the TNA Project: Addressing Poverty

Mali and the TNA Project
Mali is a West African country with a population of 20 million people. The country’s high poverty levels have long-term impacts on the physical health of citizens. With a poverty rate of 42.7% in 2019, many citizens suffer from malnutrition. In response, the Technology Needs Assessment (TNA) project’s overall focus on environmental health helps mitigate the long-term effects of poverty within the country. Mali and the TNA project have helped the country utilize agricultural technology to develop programs and projects centered on these impacts of poverty.

What is TNA?

The U.N. Environment Programme and the UNEP DTU partnership (U.N. Environment and the Technical University of Denmark) created the Technology Needs Assistance project in 2001. The Global Environment Facility helps finance this multi-phased project.

TNA has helped people in more than 80 countries, with a primary focus on environmental health. It uses a country-led approach in order to develop accountability. TNA generally helps countries make improvements to many of the programs and projects already in place.

The work of TNA aligns with the U.N.’s Sustainable Development Goals (SDGs). The SDGs emerged to end poverty and other deprivations through global partnership. TNA recognizes the role technology can have in achieving these goals, especially in the area of environmental health.

Mali and TNA

Mali faces a serious risk of droughts. Droughts can have disastrous economic and environmental effects by damaging agriculture, water supplies and more. In response to this risk, Mali and the TNA project helped develop field contouring. Field contouring prevents soil erosion and water run-off. In one rural part of the country, Koutiala, the water run-off has reduced by at least 20% and the crop yields have increased by 30%. Additionally, Mali and TNA developed micro-hydroelectric stations that benefit the rural and urban areas of the country by providing clean energy.

Although Mali completed its TNA in 2012, the Institute of Rural Economy measures the progress and impacts of the technology that this project introduced. This research agency mainly focuses on agricultural, livestock and food technology. TNA focused on the agriculture, water resources and energy sector of the country to improve overall environmental health. Despite the country’s completion of TNA almost a decade ago, there are still clear benefits from the project. For example, the Institute of Rural Economy continues to hold training sessions and collect data to ensure the country is advancing in technology. Overall, TNA in Mali aligns with five SDGs: clean water and sanitation, affordable and clean energy, responsible consumption and production, climate action and life on land.

CORAF in Mali

Since the TNA project in Mali officially ended, the country has taken steps to continue improving its practices for environmental health. The Conference of the Agricultural Research Leaders in West and Central Africa (CORAF) is an international nonprofit organization that focuses on agricultural production. Currently, Mali has implemented 23 CORAF projects. This organization works with different agricultural programs in Mali to improve and strengthen its agricultural technology. Its main goal is to reduce poverty and malnutrition in the country.

Although Mali has phased out of the TNA project, the nation is still working to improve its agricultural technology. Utilizing technology is one step toward mitigating the impacts of poverty within Mali.

– Mia Banuelos
Photo: Flickr

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Fires in Bangladesh Leave Refugees Homeless

Fires in Bangladesh
Rohingya refugees have been seeking a safe place to dwell for years. The Rohingya people are originally from Myanmar. However, the government has persecuted them for their Muslim beliefs since 1960. Their battle for independence and peace has seen little success. Recently, attacks on this ethnic group have worsened and more and more Rohingya are fleeing to Bangladesh. Unfortunately, some of their struggles continue in Bangladesh. A raging fire in southern Bangladesh left 15 people dead and hundreds missing. Aid workers are providing relief to those the fires displaced in Bangladesh. Meanwhile, government officials are working to end the Rohingya crisis.

Nowhere to Run

Many Rohingya refugees stay in Bangladesh after fleeing Myanmar. Myanmar is located in southeast Asia and is notorious for Muslim persecution. Buddhism is the primary religion in the country, and, as a result, the Muslim Rohingya have experienced persecution. The country recognizes a total of 135 ethnic groups; however, it does not recognize the Rohingya people.

In August 2017, Myanmar used extreme tactics to remove the Rohingya people. Myanmar’s military began attacking Rohingya civilians using deadly force. As a result, the Rohingya people suffered starvation, torture and senseless violence.

The U.N. describes these tactics as a “textbook example of ethnic cleansing.” During the initial attack, a total of 6,700 Rohingya people died, while many others were forced to flee from Myanmar. In refugee camps in Bangladesh, people set up bamboo huts as homes, hoping that they would be safe from further violence. Now, fires in Bangladesh leave these refugees homeless once again. To address this crisis, aid workers are now helping to rebuild communities and government officials are looking into the cause of the fires.

Coming Together

The Red Cross and the Bangladesh Red Crescent are assisting in relief efforts. Aid workers worked quickly to provide necessary supplies to refugees. Through their work, victims of the fire received food, blankets, water and clothing. In addition, rescue efforts are underway, as more than 400 people are missing. There is a dire need for help to search for these missing people.

The work of the humanitarian organizations is paying off for many of the refugees, some of whom have been reunited with their lost family members. One refugee, Ayesha Bibi, was relieved to be reunited with her husband after assuming he was dead.

There has been some speculation that arson is what caused the fires in Bangladesh. At this point in the investigation, government officials have no solid leads and are unable to confirm or refute these suspicions. As the fires have left the refugees homeless, the highest priority is ensuring their safety. Refugees have been using equipment and emergency tents provided by The Red Cross and the Bangladesh Red Crescent Society to survive.

A Brighter Hope

These past few years have brought devastation to the Rohingya people. Fortunately, funding and outreach programs have helped to ease the strains of their hardships. The U.N. has recently allocated about $14 million for the Rohingya people. This money will contribute to rebuilding shelters and providing emergency relief. Although the fires in Bangladesh have left refugees homeless, hope exists for a more secure future.

– Nancy Taguiam
Photo: Flickr

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Diamantes Na Cozinha: Lifting Teenagers Out of Poverty

Diamantes Na Cozinha
Joao Diamante, a Brazilian chef who trained in Paris under world-renowned chef Alain Duccard, decided to go back home to Rio de Janeiro, a large city in Brazil. In 2016, he began his social project Diamantes Na Cozinha (Diamonds in the Kitchen) in Rio de Janeiro. This project has received a lot of attention from national and international press due to its unique and philanthropic vision.

Who is Joao Diamante?

Diamante himself benefited from social programs in Bahia, Brazil when he was a teenager. His experiences eventually helped him become a chef overseas. Because of his belief in these youth programs, he decided to fund his own. Diamantes Na Cozinha creates cooking, nutrition and hospitality workshops for young people in vulnerable situations living in favelas in Rio de Janeiro. Favelas are low-income neighborhoods in Brazil.

Diamante himself lost a dear friend due to the violence taking place in the favelas, and he believes that teenagers must receive protection from organized crime and drug addiction. Unfortunately, addiction and crime are all too common in these impoverished populations.

About the Workshops

Kids as young as 16 enroll in the courses through Diamantes Na Cozinha, resulting in them learning skills that can land them a job later on. But, the program is also to help kids find their purpose in life. It distracts them from the harsh realities of living in a favela. Through this, Diamante is not only helping individuals emerge from impoverished situations, but also propelling the Brazilian economy.

Diamante currently teaches various courses. Each course contains up to 25 students who can sign up free of charge. There is a wide variety of courses such as hospitality, high cuisine, food anthropology and cocktail-making. During training, students have the opportunity to serve at catering events. This serves not only as an opportunity for students to receive an evaluation but also as a means for them to start making an income. When training is over, Diamante selects his best students to work a the Na Minha Casa restaurant permanently.

Currently, the Diamantes Na Cozinha headquarters includes an archive with more than 200 volumes, a fully equipped kitchen and a media library. The project has gathered international attention, most notoriously in its feature in the Netflix food show “Feed Phil,” where the host visited Diamantes Na Cozinha and presented the foundation’s story. Through this and many other features, the project has gained momentum and donations from businesses and individuals alike.

“We use Gastronomy as a tool for social and professional transformation,” said Diamante. “We don’t just want good professionals, we want our students to evolve as human beings.”

– Araí Yegros
Photo: Flickr

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Novissi GiveDirectly Alleviates Poverty in Togo

Novissi GiveDirectly Togo, a West African country home to 8 million people, wants to put money into the pockets of its most vulnerable citizens in order to alleviate some of the economic burdens of COVID-19. The most impoverished Togolese people, however, are often the most difficult to locate as they tend to live in remote areas and have little or no record of income. To address this issue, the government of Togo partnered with researchers at the University of California and the U.S. charity called GiveDirectly. The team is using artificial intelligence to identify pockets of extreme poverty within its borders. The program called Novissi GiveDirectly intends to stabilize the economy by uplifting those most in need.

The Initial Novissi Program

“Novissi” translates to “solidarity” in one of the local languages of Ewe. The initial Novissi program already distributed $22 million via mobile money payments to 600,000 citizens who live in urban areas. Voting registration provided the state with information about a citizen’s financial status and the state used this information to determine eligibility. Then, payment was sent via mobile devices. However, this same methodology could not be applied to the many Togolese who live outside the cities and identify as informal workers. The government wanted to target people in rural areas living on less than $1.25 per day without the means to put themselves on the government’s radar. Presented with this challenge, a second phase of the program emerged: Novissi GiveDirectly.

Novissi GiveDirectly

In Togo, Novissi GiveDirectly utilizes satellite imagery, mobile data and artificial intelligence as a poverty solution. Satellites capture photos from every square kilometer of the country, giving insight into villages’ local infrastructure, the housing materials used and even the size of land plots.

Mobile data also provides researchers with a major clue in the search for those carrying the biggest financial burdens. In general, impoverished people use cellphones less often, receive more calls than they make and have lower mobile money balances. Artificial intelligence then analyzes the mountains of data to identify who is eligible to receive aid from the program by estimating an individual’s wealth. Registration is as simple as a Togolese citizen dialing #855 to register for the program.

The Impact on Locals

Eric Dossekpli is a 49-year-old farmer whose livelihood has experienced a direct impact from COVID-19. His market goods were not selling because people were not buying due to the financial distress of the pandemic. This left him without an income and unable to afford fertilizer to continue growing crops.

When Dossekpli heard about Novissi GiveDirectly, he immediately registered. Once Novissi GiveDirectly confirmed his eligibility, he received an instant mobile payment of $13. Novissi GiveDirectly gives $13 to men and $15 to women every month for five months. Women receive more money due to their roles as caregivers. The money received meant he could pay for his children’s tuition and afford food. “I can’t imagine how I was going to live if not for this money. All I can say is thanks,” said Dossekpli.

The Road Ahead

What makes the program unique is that it operates using data that is already available. This makes it quick and comprehensive, two characteristics that are critical during a crisis. The program aims to distribute $10 million to 114,000 Togolese people over a period of a few months. The Novissi GiveDirectly model is currently being considered for Nigeria and Bangladesh.

Though Novissi GiveDirectly has emerged in response to a crisis, one cannot help but consider the potential benefits of such targeted investments long-term. If $13 can pay for the education of four Togolese children during a global pandemic, a sustained investment of this nature could boost an entire economy, allowing everybody to reap the rewards.

– Greg Fortier
Photo: Flickr

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COVID-19 Response: Africa’s Road to Recovery

COVID-19 response
While the COVID-19 pandemic has yet to come under control, many countries around the world have taken steps to economic recovery. African nations in particular, although prone to severe economic impacts, have shown significant progress in their COVID-19 response. According to the World Bank’s October 2020 Africa’s Pulse issue, GDP growth projections in all regions of Africa are positive for 2021 and 2022 following GDP growth decrease in 2020. This article highlights three countries that are demonstrating optimistic economic growth after COVID-19.

Rwanda

COVID-19 Response Measures: Rwanda has received recognition for its efforts to contain initial outbreaks. This is likely due to the country’s aggressive measures combining public health mandates and innovative utilization of technologies. What separates Rwanda’s response is its reliance on scientific guidance and a high-tech approach to health and social service policies. For example, treatment centers are using human-sized robots for temperature checks and supply deliveries. National enforcement also deployed drones to monitor and ensure compliance with lockdown measures.

Fiscal Policy: The December 2020 update on fiscal policy in Rwanda includes $314 million in economic stimulus, corporate tax exemptions and subsidies, cash transfers to citizens (unemployment benefits) and food assistance. Rwanda’s financial capacity proved beyond national resources but international support was able to expand it. UNDP Rwanda and the World Bank are currently working closely with the Rwanda Ministry of Finance to discern how much the COVID-19 response plan will need for operation.

Monetary Policy: The National Bank of Rwanda reduced the policy interest rate to 4.5%. It has further plans to establish liquidity and digital payment support measures. In Africa’s Pulse, the World Bank classifies Rwanda as the only country established in the Growth Taxonomy in sub-Saharan Africa. The taxonomy compares pre-pandemic performance to mid-pandemic growth. Expectations have determined that Rwanda will achieve the highest post-pandemic recovery with a GDP growth of 7%. With economic drivers like vaccine campaigns and investment and trade boosts, countries like Rwanda and Tanzania expect GDP increases. East Africa in general is expected to reach 5.1% GDP growth as opposed to the continental average at 3.2%.

Kenya

COVID-19 Response Measures: Kenya adopted many of the common direct response measures, such as a widespread lockdown. Additionally, the U.N. praised Kenya’s maintenance of well-equipped emergency treatment hospitals to best accommodate not only Kenyan patients but also U.N. personnel and partners. Kenya’s hospitals can also potentially play an important role in regional humanitarian development.

Fiscal Policy: Kenya announced a $534 million economic stimulus, a $377 million COVID-19 health expenditure, corporate tax exemptions and subsidies, cash transfers to citizens and food assistance. Like other African countries, Kenya is receiving financial assistance from major international entities such as the World Bank and the E.U. With 86 different donors, Kenya received Ksh 194,663,072,350 ($177,3769,915.25) for COVID-19 response plans.

Monetary Policy: The Central Bank of Kenya reduced the policy interest rate to 7% and planned liquidity support measures. Additionally, the government launched the National Hygiene Program (Kazi Mtaani) to reduce pandemic-induced unemployment. It offers employment with daily wages to the hardest-hit communities. Jobs include street cleaning, garbage collection and disinfection. Kenya’s trade activities also indicate promising economic recovery. According to the World Bank’s Africa’s Pulse, Kenyan exports have already recovered rapidly and have surpassed pre-pandemic highs.

Senegal

COVID-19 Response Measures: The World Bank highlighted Senegal as demonstrating a successful health response to COVID-19. Swift responses were key, particularly in regards to test capacity, quarantine facilities and ventilators. Preventative measures also included temperature checks and hand sanitizer distribution. By September 2020, 80% of confirmed cases had recovered.

Fiscal Policy: Senegal has an $801 million economic stimulus, a $130 million COVID-19 health expenditure, corporate tax exemptions and subsidies, cash transfers to citizens and food assistance. Some participating entities for Senegal’s financing include the African Development Bank Group (AfDB), the International Monetary Fund (IMF) and the World Bank. For instance, AfDB contributed €88 million to support Senegal’s measures to provide relief to vulnerable households, businesses and job security initiatives.

Monetary Policy: Senegal’s monetary policy is in collaboration with other West African countries, including Benin, Guinea-Bissau, Mali, Niger and Togo. These countries work with the Central Bank of West African States (BCEAO), which has made FCFA 4.750 billion ($8,383,750) available to banks and has reduced policy interest rates to 4%. In Africa’s Pulse Growth Taxonomy, Senegal is one of five countries in the top tercile of growth performers. It has a classification of “improved.” Improved GDP growth can indicate the first signs of economic recovery.

The Road to Recovery

As a result of early preventative policy measures, fiscal and monetary policies, international financing and trade initiatives, many African countries have paved a road to post-pandemic recovery. Rwanda, Kenya and Senegal are merely three of the African countries benefiting from smart policy measures and quick COVID-19 responses. In many cases, these countries are experiencing even higher levels of growth than they did before the pandemic. The steps that these countries and others took can serve as a model for how to navigate the economic hurdles of a global pandemic.

– Malala Raharisoa Lin
Photo: Flickr

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Addressing Poverty Conditions In The Gambia

poverty conditions in The GambiaGeographically engulfed within the western African country of Senegal lies The Gambia, a predominantly rural country with a 2023 population of 2.6 million people. 

Poverty Conditions in The Gambia

Gambia’s 2020 poverty rate was 53.4%, with poverty particularly prevalent in rural areas (76% of the rural population). The country is largely dependent on agriculture, an industry that employs 80% of the rural population and accounts for approximately a quarter of its GDP. Nevertheless, the World Food Programme reports that the country produces only 50% of the food it needs, leaving it dependent on imports. Food insecurity rose to 27% of the population in 2022, from 8% in 2016, and food inflation was 24% in July 2023. 

In March 2024, the United Nations Development Programme Human Development Index ranked The Gambia the 174th poorest country out of 193 countries ranked. 

Rural poverty particularly affects unskilled workers and subsistence farmers and is higher among the young (under 14) and the old (over 65). It is driven by environmental hazards such as droughts, floods and deforestation, limited productive employment opportunities and low-paying informal employment, along with a lack of entrepreneurship development. This impacts income, food insecurity and malnutrition, with health issues exacerbated by access difficulties and medical insurance that is restricted to formal sector employees. Households in the lowest wealth quintile experience the lowest access to basic infrastructure and services, including electricity, sanitation and water. 

The Gambia also relies on remittance inflows and tourism. As in other countries, the economy overall has suffered from the COVID-19 pandemic and the war in Ukraine, in addition to a major flooding in July 2022. Inflation reached a record-high level 13.2% in October 2022. 

Two broad-scope efforts that will facilitate poverty reduction in Gambia are its social protection policy and its long-term agreements with the International Monetary Fund.

Gambia’s Social Protection and Poverty Alleviation

The Gambia’s first National Social Protection Policy 2015-2025, developed with the participation of national, subnational and local governments and leaders, public and private, was designed to address the country’s poverty and vulnerability. Goals include pro-poor and inclusive economic growth, development of human capital, social cohesion and human rights attainment. Reforms include better use of resources, improved management and administrative systems and more inclusive social protection, with basic income and social services widely available but beginning with the poorest and most vulnerable.

The World Bank has projected strong growth in agriculture, along with the expansion of cash transfers, both of which should have a positive effect on poverty reduction. However, continued high food prices may dampen this effect. 

IMF Agreements

In March 2020, the International Monetary Fund approved an Extended Credit Facility (ECF) agreement with Gambia to provide financial assistance to implement structural reforms. The final review was completed in June 2023, with total disbursements of approximately $94 million. A new, three-year agreement, with requested access to $100 million, was reached in November 2023. Objectives of this assistance have included mitigating the impact of inflation and foreign exchange pressures on the vulnerable population, creating “space for social spending and investment,” fostering economic diversification, increasing economic participation of women, improving climate risk management and investment in infrastructure that is climate resilient.

– Staff Reports
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Updated: April 2, 2024