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Increasing Minimum Wage in Geneva

minimum wage in GenevaIn an effort to combat rising poverty rates caused by Switzerland’s COVID-19 economic recession, the canton of Geneva has voted to implement a minimum wage of $25 an hour, which is roughly equal to $4,100 a month according to the 41-hour Swiss workweek. Reportedly, the highest minimum wage in the world, the vote came after recent media footage showed thousands of people waiting for food aid, thus highlighting the city’s apparent struggle with poverty. Low-wage service workers and vulnerable groups, such as undocumented workers, who have been hit particularly hard by the pandemic stand to directly benefit from the initiative to increase the minimum wage in Geneva.

The Minimum Wage Argument

Minimum wage hikes are a longstanding, though controversial method to combat poverty. Pro arguments for minimum wages state that it increases the overall standard of living, boosts worker morale, and, if the wages are good enough, moves people out of poverty. On the contrary, economists have noted that the well-meaning increase can actually create job loss, increase inflation and labor market competition, thereby adding to poverty rates. Opponents in Geneva used this claim of job loss to sway the vote against the initiative but the attempt was responded to by Alexander Eniline of the Swiss Labour party as “baseless.” Though it is important to note the number of people in a household and how many of them work, studies show that minimum wages can reduce poverty when coupled with in-work benefits or other national policies aimed at supporting low-income households. With this in mind, Switzerland’s extensive social security coverage and welfare policies may be strong enough to offset the negative effects of a minimum wage increase.

Details of the Minimum Wage in Geneva Vote

This proposal to introduce a minimum wage to Geneva was not the first of its kind. In 2011, then again in 2014, the measure was widely rejected by the canton. Similarly, the most recent vote which was proposed through the country’s popular initiatives ballot on September 27, 2020, barely passed, with 42% of voters against the implementation. Media reports question whether Switzerland’s economic fallout following COVID-19 and the surprising response to free food distribution have pushed the vote over the edge.

On one side, Michael Grampp, a chief economist in Switzerland, stated, “It definitely helped push the vote towards almost 60%,” while Mauro Poggia, Geneva State Counselor, did not agree that COVID-19 had a large impact on the vote. Though the pandemic’s amount of influence remains unclear, the wage increase has been viewed as a collective act of solidarity with the city’s growing poor population.

The wage increase comes into effect on November 1 and will benefit 30,000 low-wage workers, which amounts to about 6% of the canton. According to Groupement Transfrontalier Européen, which is an organization supporting cross border workers, two-thirds of those benefitting will be women.

Increasing Minimum Wage: Is it Enough?

Standing as one of the most expensive cities to live in in the world, the minimum wage initiative is estimated to be barely enough to push Swiss workers above the poverty line. While $25 an hour may seem high when compared to the U.S. federal minimum wage of $7.25, Geneva’s average cost of rent for two people is roughly $3,250. This leaves less than $1000 left for food, utilities and other necessities.


Though Switzerland’s strong social security policies have kept the economic effects of COVID-19 from devastating Geneva, the city’s population is hopeful that the measure of increasing minimum wage in Geneva will give low-wage workers another boost. Campaigners have called it a “step towards equality” and a more “dignified” way of living.

– Anastasia Clausen
Photo: Flickr

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Poverty in Nagorno-Karabakh

Poverty in Nagorno-Karabakh
The news has spotlighted the region of Nagorno-Karabakh once again as conflict has erupted between Armenia and Azerbaijan. Nagorno Karabakh is a landlocked territory in the South Caucasus in Eurasia between Armenia and Azerbaijan. Some also know it as Artsakh, the (unrecognized) Republic of Artsakh or the Republic of Nagorno-Karabakh. Additionally, not everyone views it as a country. For example, Azerbaijan does not recognize Nagorno-Karabakh as an independent state and claims the region is Azeri territory. Here is some information about poverty in Nagorno-Karabakh and its challenges to date.

The Conflict

One can trace the roots of the current conflict between Armenia and Azerbaijan back to before the formation of the Soviet Union. However, tensions resurfaced in the late 1980s and early 1990s after the Soviet Union’s collapse. Prior to this, the Soviet Union had established the region of Nagorno-Karabakh as within Azerbaijan. Around 95% of Artsakh’s population is Armenian and has been resistant to Azeri rule and continues to receive support and backing from Armenia. In 1992, a full-scale war called the Nagorno-Karabakh war broke out, which killed around 30,000 people and displaced a million. Eventually, Russia brokered a cease-fire between the two countries, and by 1994, Armenia had established some amount of control in Artsakh, though it still had international recognition as a part of Azerbaijan. In 2016, skirmishes reemerged and several soldiers lost their lives in an exchange of artillery fire.

Shelling and combat broke out along the outskirts of Azerbaijan and Armenia in late September 2020. Disputes have occurred over who started the hostilities as both parties insist the other was responsible. The violence that ensued has already claimed the lives of more than 200 people, both civilians and soldiers.

Poverty in Nagorno-Karabakh

The National Review on Implementation of the SDGs (Sustainable Development Goals) in the Republic of Artsakh (Nagorno Karabakh Republic) reported the following statistics as of 2019:

  • About 21.6% of the population lives under the national poverty line of $2.40 USD a day out of which over 6.1% live under the national extreme poverty line of $1.60 USD a day.
  • Nagorno-Karabakh has a low preschool enrollment and a high school dropout rate.
  • There is a lack of access to sanitation and waste disposal in rural areas.
  • About 22% of the employed population is still poor.
  • There is a high rate of non-communicable diseases and cardiovascular diseases were the cause of 67.4% of deaths in 2018.
  • Poverty levels are higher in regions that refugees inhabit.

There are also positive statistics that have showcased Artsakh’s progress towards achieving the SDGs:

  •  All citizens of Artsakh have some level of education with around 30% having higher education.
  • More than 90% of households have access to safely managed drinking water services.
  • About 97.1% of the population has access to reliable energy.
  • The average economic growth rate in the last decade was 10.2% annually.
  • About 81.7% of the population lives in their own houses.

Internally Displaced People and the Economies of Azerbaijan and Armenia

The wars in the region have no doubt played a hand in the quality of life of the locals. The conflict has created thousands of refugees and internally displaced persons. As of 2017, more than a quarter of Artsakh’s population are refugees and IDPs. Displaced people are especially vulnerable as they lack protection from international organizations and, when living in conflict areas, may not have access to humanitarian aid and support. Many of these refugees and IDPs are Armenians who fled Azerbaijan in the 80s and 90s during the Nagorno-Karabakh War. Others have experienced displacement because of subsequent conflict in the region. The current flare-up is likely to increase their numbers.

The Nagorno-Karabakh war, which ended in 1994, also took a toll on the economies of Armenia and Azerbaijan. The United Nations assessed at least $53.5 billion in economic damage. Despite this, Azerbaijan was able to recover and achieve a high GDP growth due to its oil resources and trade. In Armenia, however, poverty increased to 55% in 1996, and its economy was vulnerable and unstable. The disparity between Armenia and Azerbaijan’s economies shifted power in the region and made Azerbaijan a more militarily powerful country.

The Future of the Region

Resolving the conflict between Armenia and Azerbaijan over Artsakh will go a long way to alleviating poverty in Nagorno-Karabakh and ensuring a safer and more secure livelihood for the locals. A potential war makes the future of civilians in Artsakh uncertain. However, mediation efforts seem more plausible and many local organizations are working to provide them with humanitarian relief and financial support. The Armenian General Benevolent Union (ABGU) and the Hayastan All Armenian Fund have launched a global emergency fundraising campaign for Artsakh. The Armenia Fund has also been providing ongoing assistance to the people of Nagorno-Karabakh through infrastructure development and humanitarian aid.

Most of the nonprofit work occurring in Artsakh has involved relief work and humanitarian aid due to the fact that it is a conflict-prone zone and home to many refugees. However, this is changing. In January 2020, World Vision Armenia and the My Step Foundation began working together with vulnerable families in the Republic of Artsakh living in poverty. This is an extension of work that World Vision Armenia had already been conducting in Armenia where it helped families improve their socio-economic condition through life-skills training and coaching from professionals, mentorship and monetary support in order to be more self-reliant.

Months of this social work proved to have positive effects as 48% of the families they worked with were able to overcome extreme poverty and there was a noticeable improvement in the quality of life for 82% of the families. The organizations are hopeful that their partnership will yield similar successful results in Artsakh where its priority is child well-being. The recent conflict has only made the implementation of this program more urgent and has the potential to give many families hope for the future and reducing poverty in Nagorno-Karabakh.

– Manika Ajmani
Photo: Flickr
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Innovations in Poverty Eradication in Hungary

Poverty Eradication in Hungary
Hungary, a country located in central Europe, has a population of roughly 10 million people.  According to Eurostat’s 2016 report, a quarter or exactly 26.3% of Hungarians were at risk of poverty. This translates to about 2.5 million people at risk of poverty in Hungary. In 2008, when the financial crisis created higher poverty and unemployment worldwide, poverty in Hungary was at 28.2%. Upon comparing 2016 figures to those of 2008, trends are improving. Here is some information about poverty eradication in Hungary.

Hungary’s Mandate to Eradicate Poverty

The European Union (E.U.) has created an agenda, the Europe 2020 strategy, marking poverty eradication within the E.U. as one of its key targets. Meanwhile, in September 2015, Hungary adopted the 2030 Agenda for Sustainable Development. The agenda, adopted by all United Nations (U.N.) member states, is committed to eradicating poverty and creating a path towards a sustainable future by 2013 globally.

Yet, Hungary has a plan of its own. Presenting its Voluntary National Review (VNR) at the U.N. High Level Political Forum on Sustainable Development in 2018, Hungary showed its stake in the process of moving forward to achieve sustainable development. The country places a large emphasis on its most vulnerable population—those in poverty.  The basis of poverty eradication in Hungary follows that all should have equal access to natural resources, knowledge, information, market and affordable loans, for instance.

Access to Clean Water and Sanitation

Hungary holds a specific emphasis on the human rights aspects as well as a holistic approach to sustainable development. The country looks to create universal access to clean water and sanitation. In effect, Hungary has proposed the issue of water and sanitation as a standalone goal within its VNR. In fact, Hungary’s tap water is of the highest quality according to European standards, in which water quality parameters reach above adequacy in excess of 95%. This means that Hungary’s tap water is safe to drink.

According to Hungary’s policies, the nation plans to put the correct price on water, allocating water and water-related funding more efficiently. This will occur all the while maintaining water-efficient technologies and practices, implementing Europe’s water-saving culture and improving knowledge and data collection regarding water scarcity and drought risk management.

Public Participation

In order to achieve success within Hungary’s implementation of the Sustainable Development Goals (SDGs), the country is targeting public participation. It intends to establish this through stakeholders and local action.

Measures include planning within the national and local-level scale, investing in and implementing social inclusion campaigns and implementing what works after understanding what does not. Additionally, the intention is to not only identify communities’ needs but address them as well.

According to the 2014-2020 financial framework of European Structural and Investment Funds (ESIF), Hungary looks at three dimensions of social inclusion. The first is measuring inclusive growth for enhanced development impact, which looks at methods that monitor development outcomes and better target social investments. The second looks at enabling inclusive growth in the nation, discussing the ample support local planning and implementation will provide on the national level. The third dimension examines the people behind the numbers, which is a handbook implementing local equal opportunity programs, offering practical guidance and tools that empower local stakeholders, a part of local Equal Opportunity Programs, to effectively mold the local social inclusion landscape.

Child Poverty in Hungary and the Family Housing Allowance Program (CSOK)

Hungary’s child poverty rate has risen from 7% to 17% between 2007 and 2012. Children born into poverty in Hungary are often the most disadvantaged. In 2015, Hungary’s government announced a new major policy, the Family Housing Allowance Program (CSOK), which would effectively give families generous subsidies to buy or build new homes. Subsidies increase based on marital status and the number of children families have. However, the country’s tax benefit favors married families with children. Since the policy’s start, Hungary has increased its fertility rate, partly due to tax preferences, cash grants, loan subsidies, constitutional protections and expensive political signaling.

 Poverty eradication in Hungary can occur through the country’s plan of working together through the cooperation of science, economy, government and civil society. Because of Hungary’s focus on eradicating poverty, the country’s poverty level is below the E.U. average.

– Danielle Lindenbaum
Photo: Flickr

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Certified B Corporation Fights Global Poverty in 2020

Certified B Corporation
Business Fights Poverty, a Certified B Corporation, began in 2005 to provide a network for businesses, organizations and other professionals. This organization believes in the principle of purposeful collaboration. It aims to unite influential businesses to add social change to the list of successes of groups across the world. Business Fights Poverty recognizes the underlying potential of uniting worldwide businesses to battle social issues such as poverty. Business Fights Poverty has implemented several influential actions during 2020. Here are four impressive examples of actions that Business Fights Poverty has taken to combat global poverty:

4 Initiatives of Business Fights Poverty During 2020

  1. Business Fights Poverty created a network of more than 28,000 businesses and organizations fighting poverty. The staff and content creators of this Certified B Corporation span across the globe. Moreover, this organization has a long list of partners with global influence. Among these partners are Walmart, Nestlé, the Mastercard Center for Inclusive Growth and Visa. Business Fights Poverty also partnered with content creating organizations to expand the reach of its content. Also, this is to increase collaboration among organizations fighting for social change. This extensive network of partners allows Business Fights Poverty to collaborate with organizations that hold different business goals and different content creators, to increase awareness surrounding global poverty.
  2. Business Fights Poverty holds free online conferences with influential business leaders to educate people on collaborative impact. Easily accessible from its website, Business Fights Poverty releases a weekly calendar of live-streamed conferences and webinars. Additionally, a major perk here is that if people cannot watch these conferences in real-time, they can watch them on the website. Previous conferences include discussions with business professors from Harvard University and the University of Oxford about the relation between social inequality and poverty. The future ones include discussions with members of the U.N. General Assembly in New York City. These free conferences provide an accessible way for people across the globe to educate themselves and learn from influential leaders in business, education and other Certified B Corporations.
  3. Business Fights Poverty offers opportunities for individuals to contribute to its website via content creation or discussion forums. The idea of collaboration spans further than collaboration among worldwide businesses. Business Fights Poverty offers numerous ways for any individual to collaborate. For instance, the ability to apply for freelance work and online forums of open discussion with experts in different fields. This again serves as a way for individuals to educate themselves through discussion with professionals. Additionally, it allows them to delve deeper into becoming involved with the organization. Business Fights Poverty makes its purposeful collaboration accessible through a few clicks on its website. This has contributed to its growth in global partners.
  4. Business Fights Poverty motivates contributors and partners to move towards the Sustainable Development Goals (SDGs). The Sustainable Development Goals are 17 goals developed by the U.N. to foster a more sustainable, global future. Two of these goals include no poverty and zero hunger. Business Fights Poverty considers one of its organization challenges as advancing toward a world that reaches these goals. By advocating for this change, the organization contributes to a global plan to combat poverty and hunger. The SDGs remain a focus in the conversation and content present on Business Fights Poverty’s website.

The Outcomes

The major outcomes of Business Fights Poverty have been reflected in the businesses and corporations it collaborates with. For example, since its involvement with Business Fights Poverty, Walmart paid its full-time workers $3 above the living wage of an adult in the U.S. in 2019. Also, it has the goal of training millions of employees in career growth strategies by 2025. Since 2015, Visa has assisted over 160,000 lower-income individuals in creating accounts and becoming involved in the financial system. Moreover, Business Fights Poverty has created a network of awareness. The actions of these major corporations set a positive example for customers and smaller businesses. This example urges people to stay aware and improve their strategies to assist those battling poverty, among other personal financial struggles.

Business Fights Poverty recognizes the impact that a Certified B Corporation, large-scale businesses and general corporations can have on battling the poverty crisis. Through education, collaboration and progress towards a common goal — this organization has dedicated itself to making a social change. As the network grows from its already substantial start, businesses can find success in assisting in the fight to combat world hunger and poverty. Finally, as for individuals, the organization’s website offers many ways to get involved that are worth exploring.

– Evan Coleman
Photo: Flickr

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Energy Access for Poverty Eradication in Burundi

Poverty Eradication in Burundi
Ranked 185th out of 189 countries on the 2019 United Nations Development Program’s human development index, Burundi is amongst the world’s poorest countries with 65% of the population living below the poverty line. Meanwhile, Burundi has the second lowest GDP in the world and the highest hunger score across the globe according to the 2018 World Food Security Report. However, poverty eradication in Burundi is possible through the granting of energy access.

Burundians live a very agrarian lifestyle with 80% of the population having employment in the agricultural sector and more than 87% of the population living in rural areas. Of the population of 11.7 million people, only 3% have access to electricity. Meanwhile, 90% of energy access in Burundi is dependent on biogas via the burning of firewood. This is not sustainable as 50% of the population remains food insecure, and the country’s total annual food production only covers 55 days per person each year.

The Challenges of Burning Firewood in Burundi

Burundian families spend on average four hours each day sourcing firewood for basic tasks like food preparation. However, this practice comes at the expense of:

  1. Education: Many children opt out of school to contribute to the sourcing of firewood. Only 32% of Burundi’s children complete a lower secondary education.
  2. The Environment: Sourcing firewood contributes to deforestation, and thus increases carbon dioxide levels. Resulting smoke contributes to poor air quality.
  3. Family Health & Nutrition: Burundi has the highest level of malnutrition in the world. In fact, 56% of Burundian children are stunted and the median age of the population is 17.3 years. The cost of malnutrition in Burundi is recorded at USD$102 million per year.

The Safe Access to Fuel and Energy (SAFE) Initiative

For a more sustainable program, the government joined with the World Food Program (WFP) in 2017 as a part of the Safe Access to Fuel and Energy (SAFE) initiative that introduced fuel-efficient stoves to over 18 countries in the region, promoting energy access for poverty reduction in Burundi.

So far, this development has sparked great progress in Burundi in the following areas:

  1. About 485,000 persons and counting have already benefitted from the fuel-efficient stoves.
  2. The SAFE program has implemented institutional stoves that have already reached 100,000 children and 147 primary schools in Burundi.
  3. The stoves now allow for each batch of firewood to have up to five times the utility it had before, with each Burundian family having an 11.5 kg daily reduction in the need for firewood.

Still, the country remains primarily dependent on biogas from firewood and this initiative has only lessened its costs to society rather than eliminating firewood dependence. As a result, the Burundian government has now turned towards alternative innovations to promote energy access for poverty eradication in Burundi.

Fortunately, the location and climate of Burundi lend well to renewable energy generation mainly through hydroelectric and solar energy. The government of Burundi is actively partnering with energy investors to build its private sector and grow its other industries, commerce, health, education, tourism, fisheries and transport sectors. Expanding beyond a primarily agrarian society promises substantial growth for the economy of Burundi, providing a framework to lift Burundians out of the poverty cycle.

Hydroelectric Power Energy Access in Burundi

Located in the heart of Africa’s Great Lakes Region, surrounded by far-stretching rivers such as Malagarasi (475 km) and the Ruzizi (117 km), Burundi has only utilized only 32 MW of its 1,700 MW hydroelectric energy potential. With only 29 of 159 potential hydropower sites already explored, Burundi is still relying on outdated hydroelectric power technologies that can only serve 9% of the population. Moving forward, Burundi has begun to make strides in energy access for poverty eradication in Burundi through the following hydroelectric power development projects:

  1. Rusumo Falls Hydropower Project: This Run-of-the-River (RoR) system has an 80MW capacity and three generating units. The Rusumo Power Company (RPCL) developed it with financial support from multi-national development leaders along with the governments of Burundi, Congo and Tanzania. The plant is located on the border of Rwanda and Tanzania with transmission lines interconnecting them with Burundi. Its production began in January 2017.
  2. Ruzizi III: With a capacity of 147 MW and intended 675GWh of average energy production, the Ruzizi III greenfield hydropower project is a part of an existing hydropower cascade that the Kivu Lake feeds. One of the largest infrastructure development projects in the region, Burundi, DRC and Rwanda each have 10% ownership of this partnership with a private investor.
  3. Ruzizi IV: A partnership among Burundi, the DRC and Rwanda, the Ruzizi Hydropower Plant Project IV has been commissioned to be a 287-MW capacity hydropower project. The African Development Bank Group has already approved a USD$8.9 million grant to support the development.

Solar Power Energy Access in Burundi

Being located on the equator, with temperatures ranging from 17 to 23˚C, altitudes varying from 772 meters to 2,670 meters, and an average 2,000 kWh/m2.year of sunshine, Burundi holds unique potential for solar power energy development. The Burundian authorities look forward to exploring this option soon.

Granted success, millions of households and industries in the region will have energy access for poverty eradication in Burundi. Reliable and widespread access to electricity should improve the quality of basic social services like health, education and security services in the region. Additionally, there will be a reduction in carbon emissions, lessening of deforestation from lower dependence on firewood and thereby an increase in the living conditions of the regional population, breaking the poverty cycle in Burundi.

– Rebecca Harris
Photo: Flickr

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Innovations in Poverty Eradication in Ethiopia

innovations in poverty eradication in ethiopiaEthiopia, officially known as the Federal Democratic Republic of Ethiopia, is located in East Africa. It has historically struggled to keep a majority of its population out of extreme poverty. In 1995, 71.1% of Ethiopia’s population lived on less than $1.90 a day. However, thanks to innovations in poverty eradication in Ethiopia, this figure has decreased to 30.8% as of 2015. The top innovations in poverty eradication in Ethiopia include economic development plans and the expansion of social services. Foreign aid from allied nations, like the U.S., has helped make these innovations in poverty eradication in Ethiopia possible.

Economic Development Plans

The main mechanism for successfully reducing poverty in Ethiopia is its chain of innovative economic development plans. Beginning with the Plan for Accelerated and Sustained Development to End Poverty (PASDEP) in 2005, Ethiopia has implemented a series of these plans. Each last five years in order to adapt to the new market. In 2010, the First Growth and Transformation Plan (GTP I) replaced the PASDEP. The Second Growth and Transformation Plan (GTP II) succeeded this plan in 2015.

The GTP II remains in place but is nearing the end of its five-year installment. The plan doubled down on the previous strategies’ prioritization of human resource and infrastructure development. As such, it has sustained economic growth in Ethiopia. This was most evident in Ethiopia’s huge spending increase in the education sector. Roughly one quarter of the nation’s total expenditures go toward education and training. Importantly, this far surpasses the allocated budget in every other nation in the region. Access to “universal primary education” also rose exponentially—an important milestone for the country. In addition, the plan called for large investments in roads, railways, power and agriculture.

The plan also focused on industrial development, strengthening the manufacturing industry to increase economic growth. Analyst for the Development Initiatives, Peace Nganwa, writes that “interventions that increase economic growth also contribute directly to poverty reduction.” Since the GTP II’s implementation, Ethiopia’s GDP has grown substantially. The total GDP grew from $64.6 billion in 2015 to $96.1 billion as of 2019, a whopping 48.8% increase.

Expansion of Social Services

Ethiopia’s focus on improved social services has dramatically increased the welfare of its citizens. Besides education, health, transportation, energy infrastructure and water and sanitation have expanded greatly. Health coverage in particular has been a priority for Ethiopia in the past few years. Substantial increases to healthcare funding brought Ethiopia’s access to health coverage to 98% in 2018. This was an important mark to hit, especially before the coronavirus pandemic reached the country.

Furthermore, water scarcity has historically been problematic for Ethiopia. The nation accounts for 7.5% of the global water crisis, affecting more than 62 million citizens. However, Ethiopia’s focus on the issue has helped reduce it significantly. This work has brought the country’s access to potable water to 66%. All of these social service expansions contributed to increasing the overall life expectancy of Ethiopians. Specifically, it now rests at 64.6 years.

International Assistance

Foreign development assistance made these innovations in poverty eradication in Ethiopia possible. In 2010, for instance, the $3.5 billion Ethiopia received in total foreign donations covered more than half of its spending. The largest contributor to this was the United States, giving $875 million.

As the nation plans another five years of poverty eradication measures, it faces one of the hardest challenges the world has come by: COVID-19. Ethiopia has proven that it can strategize to eradicate poverty within its borders. However, it needs assistance from foreign nations to make it truly achievable, now more than ever in the face of a pandemic.

– Asa Scott
Photo: Wikimedia

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Innovations in Poverty Eradication in Uganda

innovations in poverty eradication in ugandaWhen it comes to the fight against poverty, innovation is just as important as in any other field. Coming up with creative, sustainable solutions for such a massive problem is critical in any nation. However, it is more important in developing countries, where funds allocated for poverty reduction are often limited. By thinking outside the box, governments, private sector organizations and NGOs can effectively accomplish poverty reduction efforts across many sectors. Here are just a few innovations in poverty eradication in Uganda.

The Private Sector

In fact, the private sector is often where innovation originates and forward-thinking people thrive. Normally, many people think of poverty reduction as a job for governments and NGOs. However, by involving private corporations, the fight against poverty can work outside the bureaucracy that often impedes the work of governmental agencies.

Additionally, there is a large incentive for private businesses to get involved with poverty reduction. The world’s poor represents a largely untapped market of consumers. By lifting them out of poverty, businesses will create a larger client base and ultimately more profit. Today, 4 billion people are living on less than $8 a day. This segment of the population provides opportunities for expanded market development and human capital. Indeed, there is no shortage of entrepreneurs looking to work with this demographic.

Innovations in Poverty Eradication in Uganda

The private sector is where many innovations in poverty eradication in Uganda emerge. One particular business-focused innovation that has taken hold in Uganda is microfinancing. Microfinancing practices give small loans to fledgling entrepreneurs. Recipients use the loans to grow their businesses, create jobs and positively impact their communities. This opportunity for those traditionally excluded from the banking system to obtain credit has done lots of good, particularly in Uganda.

For example, The Hunger Project is taking its microfinancing efforts one step further. Not only is it promoting economic self-reliance, but it is ensuring the inclusion of women. Women even lead its microfinancing program, giving them an influential voice in their communities. Thus, microfinancing is one among many innovations in poverty eradication in Uganda.

Empowering Women

Another success story is the Women’s Microfinance Initiative (WMI). WMI’s mission is “to establish village-level loan hubs. Local women administrate the loan hubs to provide capital, training and support services for women in East Africa. This is to help them engage in income-producing activities.” Since 2008, WMI has issued over $7.2 million in loans to more than 17,500 women in East Africa. The organization estimates that each loan provides a positive economic outcome for at least 20 people. Overall, this means that this program has reached over 350,000 individuals in the past 12 years.

The anecdotal evidence above as well as the available data show that microfinancing initiatives are effective innovations in poverty eradication in Uganda. According to the World Bank, the percentage of those living below the poverty line in Uganda decreased by 11.4% from 2006 to 2013. The organization credits much of this progress to agricultural innovations, many of which use microfinancing. This goes to show that often, innovation and progress happen from the bottom up.

Moving Forward

However, if this progress is to continue, innovators looking to further innovations in poverty eradication in Uganda need to focus on malnutrition, education, sanitation and electricity. Without access to these services, innovation efforts will fall short. Therefore, a potential approach to poverty reduction in Uganda would be a blend of governmental, NGO and private sector efforts. Long-term, inclusive and sustainable solutions can go a long way toward reducing poverty in Uganda and elsewhere.

– Addison Collins
 Photo: Flickr

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Innovations in Poverty Eradication in Bulgaria

Innovations in Poverty Eradication in Bulgaria
The past three decades have resulted in a fluctuating economy within Bulgaria. Specifically, the global financial crisis of 2008 has left the country with insolvency. Despite this hardship, Bulgaria continues to rise on the Global Competitiveness Report, coming in at 49 out of 144 countries. Advancements in the information communications technology (ICT) sector has played a large part in their resiliency and may be the key to innovations in poverty eradication in Bulgaria.

The Global Competitiveness Report

The Global Competitiveness Report measures a number of pillars. Since the implementation of its national strategy for poverty eradication in Bulgaria in 2015, Bulgaria has significantly improved its Global Competitiveness Report ranking in the 12th pillar: innovation capability. In 2015, it ranked 94 out of 140 countries. In 2019, its ranking jumped to 48 out of 141 countries.

In 2018, the Global Competitiveness Report added an additional pillar for ICT adoption. Bulgaria currently ranks 30 out of 141 countries on this pillar. From 2016 to 2018, there was a 300% growth in the Bulgarian ICT workforce. To paint a more detailed picture, the industry went from 5,000 to 20,000 workers.

What is ICT?

People may best know Bulgaria for its software industry, namely educational software, financial services software, analytical software and Manufacturing Execution System (MES) management software. Of the E.U. members, many regard Bulgaria as having the best performing ICT sector. In addition, Bulgaria houses approximately 10,000 ICT companies. This may be due to the low corporate tax rates of 10%.

ICT Organizations for Marginalized Citizens

A subsequent factor of poverty is social exclusion. Gaps in employment and educational opportunities create social barriers for poverty-ridden areas. Despite 71% of Bulgarian homes having access to high-speed internet, only 41% of citizens have basic computer skills. The following organizations have devoted themselves to mending this gap:

  • Telerik Academy: Telerik Academy is a free educational program for Bulgarian citizens that teaches computer literacy and key digital competencies for careers in the ICT software sector. Its founders, Svetozar Georgiev, Boyko Iaramov, Vassil Terziev and Hristo Kosev, created Telerik Academy in 2009 as a way to train people for their company’s ICT needs. Shortly after, Telerik expanded its services to reach anyone wanting to develop skills for future ICT careers. Telerik Academy has serviced over 115,000 Bulgarian children and professionals in its first 10 years.
  •  The Bulgarian Centre for Women in Technology (BCWT): The Bulgarian Centre for Women in Technology (BCWT) is another important organization in the ICT sector. Since its start in 2012, the BCWT has devoted its efforts to diminishing gender stereotypes in the ICT realm by motivating females to pursue careers in science and technology. In 2015, Bulgaria had the highest percentage of EU female ICT workers with 27.7%. The BCWT has a number of past and ongoing initiatives that have contributed to this ranking. Enterpregirl, for example, is a competition that invites young Bulgarian women to present their innovative ICT-related projects. The goal is to develop confidence in young women’s entrepreneurship skills in a field that has been historically reserved for men.

Bulgaria’s ICT sector has remained on a steady incline for the past five years, with no intention of slowing down. Bulgaria’s growing software industry proves to aid with innovations in poverty eradication. Organizations like Telerik Academy and BCWT are crucial in closing the employment and educational gaps that ultimately fortify poverty. Despite the country’s insolvency, Bulgaria remains dedicated to poverty eradication in Bulgaria through ICT education and opportunities.

– Sage Ahrens-Nichols
Photo: Flickr

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Poverty Eradication in Rwanda: Four Crucial Programs

Four Crucial Programs on Poverty Eradication in Rwanda
Rwanda has one of the fastest developing economies in Africa. This economic development depends greatly on poverty eradication in all parts of the country. Over the past 20 years, the Rwandan government has partnered with a number of organizations to start initiatives geared towards poverty eradication in Rwanda. These programs would help the poor by reaching the needs of local communities. Here are four initiatives meant to help end poverty in Rwanda.

Four Programs That Will Solve Poverty Eradication in Rwanda

  1. Economic Development and Poverty Reduction Strategies (EDPRS): From 2008 to 2018, the government of Rwanda began Economic Development and Poverty Reduction Strategies one and two. These five-year campaigns focused on growing the country’s GDP, reducing the country’s poverty rates and reducing the income inequality between households. These campaigns followed the closing of the first Poverty Reduction Strategy which focused on emergency recovery from the effects of the 1994 Genocide against the Tutsi. Moreover, the International Monetary Fund (IMF) reports that during the first five years of EDPRS I, GDP grew at an annual average rate of 8%. In addition, poverty in Rwanda dropped from 57% in 2006 to 45% in 2011. During strategy two of EDPRS, the government reinforced the district-based performance contract for better implementation and evaluation of the set poverty-reduction goals.
  2. One-Cow-Per-Family (Girinka Program): The Girinka Program was started in 2006 by the president of Rwanda, Paul Kagame. This program started after the realization that there were high numbers of malnourished children in poor families. The goal of the program is to tackle malnutrition in rural areas of Rwanda by giving one cow to each family. The benefits of the initiative would expand as cows reproduced calves and these calves were given to other families in need. The cows produced milk and the excess was sold to local dairy facilities. This helps the families greatly as they gain income from the cows while also being able to feed themselves.
  3. Umuganda: Umuganda means community work. It is common knowledge in Rwanda that on the last Saturday of the month, people will gather in their local communities to do community work. This work involves building houses for the homeless, cutting weeds in the neighborhood, helping in the construction of roads, bridges, schools, hospitals and other necessary buildings in the local community. Additionally, Umuganda involves cleaning up the streets in urban areas. This extra activity helps to prevent pollution-related disease transmissions while discouraging littering. These community works are the norm in the country. In addition, every adult in a healthy condition is expected to show up at these events. Umuganda has been a channel for helping the poor in local communities. This activity encourages support and gives back to the community. After Umuganda, local leaders hold a community gathering. At the gathering, there are discussions of problems in the community and solutions reached accordingly.
  4. Savings and Credits Cooperatives (SACCOs): SACCOs are widely known as Umurenge SACCOs. The government of Rwanda started this initiative in 2008. The initiative aims to encourage financial inclusion. Umurenge SACCOs became more popular in rural areas where big commercial banks are often inaccessible. The Rwandan Cooperative Agency reports that these SACCOs focus on boosting rural savings and providing Rwandans with loans to help enhance their livelihoods in the long term. By 2012, SACCOs doubled the number of Rwandans who used a formal financial institution for banking and significantly improved financial literacy in rural areas of the country.

These poverty eradication programs have shown great results over the years. They reached many remote communities that are often forgotten. With the spread of technology in the country, the coming years promise better numbers on this journey of poverty eradication in Rwanda.

– Renova Uwingabire
Photo: Flickr

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Becoming an Advocate for Global Poverty Legislation

ADVOCATE FOR GLOBAL POVERTY LEGISLATIONThe mission of The Borgen Project differs from many other foreign aid organizations in that it focuses on combatting through ongoing legislation rather than one-time donations to countries in need. In order to make the most significant impact on the world’s poor, it is necessary to call, email and lobby members of Congress to support beneficial foreign policy. With this more complex mission comes the task of becoming an informed advocate for global poverty legislation. Not unlike many vital humanitarian causes, self-education is not only increasingly crucial but increasingly accessible. There are simple ways to become more well-versed in global poverty and foreign policy.

1. Read About Fighting Global Poverty

There is no better time than now to invest in reading informative books about worthwhile topics. Popular books surrounding the topic of global poverty legislation and advocacy include “How Change Happens” by Duncan Green and “Freedom From Want: The Remarkable Success Story of BRAC, the Global Grassroots Organization That’s Winning the Fight Against Poverty” by Ian Smillie. These books offer analyses on the history of grassroots organizations fighting poverty, as well as actionable steps to contribute to these efforts.

It is also vital to read about the intersection of global poverty and social identities, such as gender and race. One such book is Pulizer-Prize winner “Half the Sky: Turning Oppression into Opportunity for Women Worldwide” By Nicholas Kristof and Sheryl WuDunn. Reading memoirs is also particularly useful for this. Two notable titles in this category include “Persepolis” by Marjane Satrapi and “They Poured Fire on Us From the Sky: The True Story of Three Lost Boys from Sudan” by Benson Deng, Alephonsion Deng, Benjamin Ajak and Judy A. Bernstein.

2. Subscribe to Online Newsletters

For a brief daily dose of education, anyone can subscribe to a foreign policy newsletter from a reputable source. On Foreign Policy’s website, one can subscribe to a variety of free newsletters containing global updates. Some newsletters arrive daily while others arrive weekly. Such newsletters are Editors’ Picks, Flash Points, and Morning Brief. There are also frequent newsletters available from the Center for International Policy, the World Bank, and the Council on Foreign Relations.

3. Follow Global Poverty and Advocacy Instagram Accounts

A picture says a thousand words and many Instagram accounts use vivid photos to convey global poverty and advocacy updates. Many of these photos feature eye-catching graphics containing statistics about global poverty and brief but comprehensive captions always offer context for the images. While social media often contains vapid or fleeting content, these accounts demonstrate how social media can educate anyone willing to follow along. Examples of such accounts are UNICEF, the International Rescue Committee, the United Nations, U.N. Human Rights, and the U.N. World Food Programme.

4. Keep Up with Senators and Representatives

The most direct way to advocate for global poverty legislation is to contact members of Congress on an ongoing basis. Each person has one representative and two senators, which can be easily located using the “Find Your Elected Officials” tool on The Borgen Project website. In addition to subscribing to representatives’ and senators’ newsletters and social media accounts, it is enlightening to do more research on their previous actions for poverty-reducing legislation.

More often than not, there will be a tool on a congressperson’s website to view the bills they have recently sponsored or co-sponsored as well as pages that specify which committees the congressperson resides on. On the U.S. Congress website, there are pages detailing several Foreign Policy Committees, including who the committees consist of. By conducting research, it is easier to determine what any given congressperson’s stance is on global poverty legislation and foreign aid. With this information, one can go beyond the typical call or email and additionally bird-dog or lobby congress with an informed perspective of the congressperson’s past efforts and priorities.

Becoming an informed advocate for global poverty legislation may seem like a massive undertaking but the amount of dedication to the challenge distinguishes true solidarity from fleeting, temperamental advocacy. Using these accessible resources, anyone can learn about the importance of poverty-reducing legislation and aid and play a part in reducing global poverty.

– Stella Grimaldi
Photo: Flickr