Information and stories about poverty reduction.

Spices Alleviating Poverty in VietnamAs unexpected heroes, the spices alleviating poverty in Vietnam are everyday seasonings that are saving the Southeast Asian nation. Since 2013, the Vietnamese spice industry has been practicing more sustainable farming and sharing knowledge between agricultural communities, helping to lift more than 80,000 households out of poverty.

The Spice Industry in Vietnam

By improving the spice value chain, the nation’s farmers have seen a 14.5% increase in annual income, improving their standard of living and allowing them the financial freedom to thrive rather than just survive. This is possible due to the increase in global demands for spices including cinnamon, turmeric, star anise, black pepper and cardamom.

With the profitable market that Europe and the U.S. have brought to the Vietnamese spice industry, many expect new regulations for safe production and quality control for the industry. Some spice farmers had to pivot to organic farming to meet these requirements and have since seen a great increase in profits as these Western nations pay higher prices in comparison to China and India.

Regulated Spice Farming

To meet these requirements and appeal to Western markets, farmers follow the guidelines that the Regional BioTrade Project set. Vietnamese farmers now learn how to farm without chemicals like herbicides or preservatives, use special machinery for harvesting and label spices with their correct origins. These practices help to build a sustainability chain to keep the Vietnamese spice industry profitable for the future.

Several organizations have helped the Vietnamese spice industry reach this level of success. The Spice of Life Project, which the Swiss Agency for Development and Cooperation (SDC) and Cordaid funded, has helped thousands of spice farmers in Vietnam by creating the Spice Association to foster relationships between small community farmers and the state. These initiatives also improved irrigation, drying, slicing, processing and packing practices, yielding higher production and quality.

Providing these local farmers with this knowledge is essential to successfully use spices to alleviate poverty in Vietnam. The National Agriculture Extension Center (NAEC) and the Sustainable Trade Initiative (IDH) have introduced a National Sustainability Curriculum and Agrochemical Apps to properly train farmers to produce spices for the global market.

The 3 Essential Spices Alleviating Poverty in Vietnam

  • Pepper: Vietnam has exported pepper to more than 100 countries and territories, making up 60% of the world’s exports. In 2018, Vietnam’s booming pepper industry held the international pepper conference called Vietnam Pepper Outlook. This event intended to allow farmers to connect and share knowledge, expand business connections and suggest ideas for the sector’s sustainable development.
  • Cardamom: This spice grows in a shady, cool environment, making it an ideal source of income for villages located at high altitudes. Due to the income that the spice generates, many households in these higher regions, such as the H’Mong people, were able to raise household income above the government-defined poverty line. People can use cardamom for medicinal, aromatic or culinary purposes but the cardamom market had died off until the mid-1980s when demand rose again. Many small farmers have successfully taken advantage of this rise in cardamom demand, pulling low-income households out of poverty. Farmers are working toward sustainable practices to ensure the success of this spice for years to come.
  • Cinnamon: In 2016, the Nam Det commune’s annual income from cinnamon products was 32 billion Vietnam Dong ($1.4 million). In this Vietnamese commune, people have not only left poverty but they have produced enough income to send their children to school, buy refrigerators and other commodities they once thought of as an inaccessible luxury. Since the Vietnamese spice market has stretched to the West, farmers’ lives have improved immensely. The bark of one cinnamon tree brings in about 300,000 to 500,000 Vietnam Dong ($13-21), a far greater price than what cinnamon farmers received only years ago.

A Poverty Reduction Spice Success Story

Exemplifying cinnamon’s potential is Trieu Mui Pham, a 94-year-old cinnamon farmer that saved her poverty-ridden village, Lao Cai, by planting cinnamon seeds. In 1974, she visited Yen Bai, a village that farming cinnamon had successfully revived. Pham decided to plant cinnamon seeds and waited patiently for years until she could harvest. Today, her cinnamon forest has more than 50,000 trees and her community is prosperous, an inspiring example of spices alleviating poverty in Vietnam.

While the spices alleviating poverty in Vietnam are improving people’s standard of living, spice farming has also helped to restore and protect the environment. Vietnam now focuses on farming and crop exports as opposed to felling trees for profit. Spices are lifting people in Vietnam out of poverty while contributing to the global economy.

– Veronica Booth
Photo: Pixabay

accessibility in IndiaAs of 2020, 50% of people in India had access to the internet, a figure growing most quickly in rural regions. In 2019, there were 264 million internet users in rural India compared to the 310 million internet users in urban India. The rapid growth of internet adoption outside of Indian cities can be accredited in part to the initiatives of the Digital India campaign, including efforts to integrate the country’s cloud infrastructure, promote open data platforms, fill connectivity gaps and offer affordable data plans. Overall, internet penetration rates across the country have more than doubled over the last five years. Through the use of technology and the internet, platforms have been created to increase resource, service and opportunity accessibility in India.

The Digital Revolution Increases Accessibility

In a country where 80% of the impoverished live in rural areas, widespread internet availability is vital. More than just a source of entertainment, the internet increases accessibility of products and services that otherwise might not be affordable or available. Recognizing the potential for digital technologies to cut across geographic and economic barriers, numerous private and public organizations have developed platforms designed to increase accessibility in India. Whether connecting buyers to faraway sellers or simply helping individuals locate public toilets, these innovative tech platforms champion access and promote inclusion in India.

Google Toilet Locator

In 2012, more Indian households had a cellphone than a toilet. A lack of access to toilets leads to rampant open defecation with consequences ranging from water pollution to the spread of infectious diseases such as cholera. In a country where technology has grown faster than public services, the government turned to tech for assistance in its campaign to eradicate open defecation and improve waste management. In December 2016, India’s Ministry of Urban Development (MoUD) partnered with Google to introduce a Google Maps toilet finder tool as part of the Swachh Bharat (Clean India) Mission. As the government works to construct millions of toilets around the country, the Google Toilet Locator helps Indians to more easily find them. The app even allows users to leave ratings and reviews for public restrooms.

Tractors-as-a-Service

In September 2018, Aeris Communications partnered with Hello Tractor to launch “Tractors-as-a-Service” in India, The service provides on-demand tractor rentals to Indian farmers. In India, agriculture is an essential source of export earnings, employment and food. Tractors play a crucial role in increasing agricultural productivity but less than 30% of farmers utilize such expensive, high-capacity equipment. Hello Tractor’s software, which can be accessed through mobile and web applications, offers a “pay-as-you-use” model based on time in the field and area covered. The app enables small farmers to reap the benefits of commercial model tractors at lower costs while increasing the profits of tractor owners by allowing them to rent out their machines during idle times.

IndiaMART

IndiaMART is India’s largest online business-to-business marketplace, connecting buyers with suppliers of products and services ranging from pharmaceuticals to industrial machinery to wholesale foods. IndiaMART offers more than 67 million products and services to more than 100 million buyers. Importantly, the platform gives small and medium-sized enterprises in India a place to promote their business. There are about 60 million small and medium-sized businesses in India but only around 10 million of them have any web presence, according to the most recent data. IndiaMART allows these companies to expand their market reach and sell through the platform for a subscription fee.

A thriving e-commerce economy allows for goods and services to reach a consumer base that is less affluent and lives outside of traditional urban markets, thereby increasing market accessibility and enhancing the welfare of rural and lower-income populations.

Unified Payments Interface

In the financial sector, the National Payments Corporation of India developed the Unified Payments Interface (UPI), an instant real-time payment system regulated by the Reserve Bank of India. The platform allows users to access multiple bank accounts from even the most remote locations, routing funds and making payments under one seamless application. Digital finance platforms such as UPI are crucial in promoting financial inclusion and empowering individuals with tools such as loans and savings accounts.

Both private and public digital platforms have been deployed to increase accessibility in India and reach those who may otherwise be excluded from resources, services and opportunities.

Margot Seidel
Photo: Flickr

Improve Education in BangladeshIn a speech given at a Boston high school in 1990, Nelson Mandela said, “Education is the most powerful weapon which you can use to change the world.” For many of the world’s impoverished, education is not an option. Today, more than 72 million children of primary education age are not in school and nearly 759 million adults are illiterate. While many maintain the capacity to survive without an education, the knowledge and awareness garnered through school allows the impoverished to improve their living conditions and rise out of poverty. USAID and the World Bank are working to improve education in Bangladesh as a means of addressing poverty.

The State of Education in Bangladesh

In the last 10 years, there has been progress when it comes to improving education in Bangladesh. According to USAID, nearly 98% of children of primary school age are enrolled in school. In 2016, 50.9% of all enrolled students were girls, meaning total gender parity. Both of these statistics are major accomplishments but there is much more to be done to improve education in Bangladesh.

While enrollment is high, the quality of education that the children are receiving remains quite low. Reading fluency is the barometer that is used to measure a school system’s quality, and in Bangladesh, most students are unable to pass basic fluency assessments. To put exact numbers to this, USAID conducted an assessment and determined that “44% of students finish first-grade unable to read their first word and 27 % of third-grade students cannot read with comprehension.”

This lack of literacy not only puts these students at a great disadvantage but stunts prospects of economic growth for Bangladesh. Education plays a significant role in sustaining and developing countries and economies which is why USAID and the World Bank have invested in improving Bangladesh’s education system.

The World Bank’s Education Efforts

On January 18, 2021, Bangladesh signed an agreement with the World Bank, financing $6.5 million to help more than 39,000 kids receive primary school education. The package also allocates funds to vocational training schools for approximately 8,500 dropouts. Mercy Tembon, the World Bank country director for Bangladesh and Bhutan, says that the pandemic has disproportionately impacted the education of children from lower-income households. The additional financing will help slum children and vulnerable youth to build the foundations necessary to improve their lives and increase their opportunities. The World Bank has given Bangladesh the means necessary to improve the quality of their education system and thus support the greater economy.

USAID’s Educational Assistance

USAID has taken a more hands-on approach in improving the quality of education. It works directly with Bangladesh’s Ministry of Primary and Mass Education to improve early grade reading for children to ensure that all children learn to read in their first years of schooling. USAID’s education programs in Bangladesh have:

  • Expanded access to schooling to almost 30,000 out-of-school children
  • Increased the reading fluency of third graders by 18%
  • Increased the first-word reading fluency of first graders by 36%
  • Trained nearly 17,000 new teachers on how to teach early grade reading
  • Issued more than two million reading materials to primary schools

Education as a Key to Poverty Reduction

Every young mind deserves the opportunity for education and with the help of the World Bank and USAID, Bangladesh has the means to offer that. Efforts to improve education in Bangladesh will uplift an entire nation. The state of education in the world is progressing and thus bringing about poverty reduction success.

Matthew Hayden
Photo: Flickr

Hemp production in PakistanIn September 2020, the Pakistani Government approved industrial hemp production, legalizing hemp and allowing hemp farming in agricultural sectors. Hemp is a type of cannabis plant, used commonly for medicinal purposes due to its cannabidiol (CBD) concentration. Considering the many benefits of hemp production, this landmark decision brings exciting possibilities for many areas in Pakistan. Since the economy of Pakistan has been long in need of a boost, the new approved hemp production and legalization is said to bring economic benefits to the country.

The Economic Benefits of Hemp Production

Officials in Pakistan’s government encouraged hemp legalization and production in efforts to relieve fiscal deficits and Pakistan’s struggling economy. Considering the industrial hemp market is worth about $25 billion globally, Pakistan’s science and technology minister, Fawad Chaudhry, says Pakistan is aiming for a profit of $1 billion over the next three years by joining the global hemp market. Exports in hemp can target CBD oils and cannabis-based products and can be a sustainable cotton replacement during slowdowns within the cotton industry.

A Sustainable Replacement for Cotton

Hemp production in Pakistan is most exciting to the workforce, especially for farmers participating in hemp markets and those working within the cotton industry. Cultivating hemp will create more jobs for the small-scale farmers responsible, but more importantly, become a sustainable replacement for cotton in Pakistan’s markets. As the fourth biggest cotton producer in the world, Pakistan’s cotton production has been declining due to climate change, water scarcity, locust attacks and industrial imbalances such as declining prices and low-grade seeds. The hemp plant’s stalk has strong properties of cellulose-rich fiber which is an effective ingredient in the making of paper, rope, construction and reinforcement materials, due to its strong fiber components. Hemp, therefore, makes for a worthy sustainable replacement to cotton.

Hemp Research Possibilities

For researchers, hemp production in Pakistan is exciting for many reasons. With the new hemp legalization, hemp research is no longer taboo, according to Muhammed A. Qayyum, an advisor in the Pakistani government and the director of Medics Laboratories. With this new allowance, researchers can delve into more potential applications of hemp in medicine and more.

Medicinal Properties of Hemp

Advocates have listed numerous medicinal properties to hemp, more specifically, the chemical cannabidiol (CBD) within the plant. Cannabis is seen as medically beneficial as the cannabinoid compound is said to relieve pain and regulate appetite, mood, memory inflammation, insulin sensitivity and metabolism. Hemp is also a valuable food supplement, incorporated in gluten-free products to increase nutritional value from hemp’s high levels of fiber and proteins.

The Potential of the Hemp Industry in Pakistan

With this new federal approval, Pakistan can enter global markets as a new exporter of CBD with the ability to generate millions of revenue similar to China, the United States and India. Hemp production in Pakistan opens up a wide range of possibilities but also brings thousands of jobs across multiple fields such as farm work, production, marketing, transportation, research and medicine. As a flexible crop, the hemp market can address several demands, from textiles, clothing, home furnishing and industrial oils to cosmetics, food and medicine.  Holding an overall market value of more than $340 billion and 263 million cannabis consumers worldwide, Pakistan’s economy can shift dramatically with the newly approved hemp production.

Linda Chong
Photo: Flickr

Coca Farmers Poverty traps Colombian coca farmers in an unsustainable, unethical and sometimes dangerous occupation. During the country’s half-century-long civil war, rural communities were built up around the cultivation of coca to be used in the production of cocaine.

The Peace Deal

Militant guerrilla groups such as Revolutionary Armed Forces of Colombia (FARC) were reliable buyers of coca crops as they used the cocaine trade to finance the war with the Colombian government. However, in 2016, a peace deal was agreed upon between the Colombian government and FARC that officially put an end to the civil war in Colombia. The peace agreement included a plan to wean rural communities off of the cultivation of coca by asking them to uproot their own coca plants and then providing them a monthly stipend as well as technical assistance in order to assist them in transitioning from coca to other crops. Due to organizational and financial oversights, however, many coca farmers have not received their full stipends nor have they received the technical assistance to change crops. Despite this, the Colombian government continues to carry out forced coca crop eradication efforts that leave these communities with no viable source of income.

Impoverished Farmers in Colombia

Even though the Colombian civil war is officially over, armed groups still vie for control of the cocaine trade, often employing violent, coercive methods to secure a steady supply of coca from impoverished farmers, putting coca farmers’ families and communities at risk due to the production of coca.

Often struggling to make ends meet, farmers rely on the steady income that coca cultivation provides them, despite their concerns about ethics and danger. With the implementation of the government’s coca replacement program falling flat, coca farmers were given little choice but to continue to cultivate coca crops or watch their families go hungry. Colombian law enforcement officials say 40% of forcefully eradicated coca crops are replanted. Voluntary replacement of coca crops with other crops is much more promising, with replanting rates near zero.

The Voluntary Replacement of Coca Crops

The voluntary replacement of coca crops with cacao allows farmers to provide themselves with a reliable income without having to endanger themselves or contribute to the narcotics industry. The National Federation of Cacao Farmers (Fedecacao) has been helping farmers to make this transition. With yields of up to 800kg per hectare, a cacao farmer can earn up to double the minimum wage of Colombia, making coca cultivation a less attractive alternative due to its illegality and the violence that the coca industry brings about. On top of this, the cacao industry in Colombia is growing with 177,000 hectares devoted to cacao­­, 25,000 of which were transitioned from coca cultivation. The increased production of cacao has resulted in Colombia becoming a cacao exporting country.

Joel Palacios Advocates for Cacao Transition

One particular example of a successful transition from coca cultivation to cacao is taking place in the department of Chocó in western Colombia where 60% of people live below the poverty line. Joel Palacios, a native of Chocó, has been devoted to advocating for the replacement of coca by cacao since 2011. For years, Palacios ran a chocolate training center for coca farmers who desire to grow cacao and turn it into chocolate. Palacios then launched Late Chocó, his own artisanal chocolate company based in Bogotá.

Helping Farmers Transition to Cacao

Stories like that of Palacios show the benefits of working with coca farmers to replace dangerous and illegal crops with more legal, profit-earning alternatives such as cacao. Whereas forcible, nonconsensual uprooting of coca produces inefficient results, the prospect of a steady, legal source of income incentivizes coca farmers to make the transition to cacao on their own.

Willy Carlsen
Photo: Flickr

Mobile Data TrafficMany poverty-stricken individuals do not have access to the internet, creating a digital divide. The COVID-19 pandemic has revolutionized mobile data traffic around the globe, particularly in sub-Saharan Africa. Mobile broadband supports access to education, work, healthcare, goods and services. It plays an imperative role in reducing poverty. With nearly 800 million people in the region still without access to the mobile internet, it has never been more urgent to close the digital divide.

The Need for Mobile Broadband

According to Fadi Pharaon, president of Ericsson Middle East and Africa, the increasing demand for mobile broadband provides an unprecedented chance to improve economic conditions for Africa. Currently, Africa is one of the quickest growing technology markets.

In addition to younger populations requiring technology to develop practical computer skills, during the COVID-19 pandemic, access to the internet is also crucial for remote learning and remote work to continue development and economic progression.

In response to the pandemic, sub-Saharan African countries that were able to implement telework adaptations had considerably greater access to the internet, as much as 28 % of the population, as opposed to countries that were not implementing telework, at 17 %.

Due to the increase of digitalization during the pandemic, these developments are expected to positively contribute to the region’s economic recovery post-pandemic. Research suggests that expanding internet access to cover an additional 10% of the region’s population has the ability to increase gross domestic product (GDP) growth by one to four percentage points.

The Mobile Broadband Demand

Fixed Wireless Access (FWA) delivered over 4G or 5G is a more affordable alternative to providing broadband in areas with limited access. By 2025, FWA connections are expected to reach 160 million, accounting for 25% of global mobile data traffic.

The estimated total growth of mobile data traffic is from 0.87EB per month in 2020 to 5.6EB by 2026, an increase of 6.5 times the current figures.

To keep up with the demand, service providers are predicted to continue upgrading their networks to meet their customers’ evolving needs.

Additionally, networks expect to see an increase in customers purchasing mobile data subscriptions. Long-term evolution (LTE) was predicted to amount to 15% of subscriptions at the conclusion of 2020.

Novissi Digital Cash Transfers

The Novissi cash transfer program in Togo is an example of why mobile broadband access is important in developing countries. To support struggling people in Togo during COVID-19, instant mobile cash payments were made to their mobile phones to address urgent needs. The program provided more than half a million people with financial assistance during a crisis.

Closing the Digital Divide Reduces Poverty

Experts suggest that funding infrastructure, increasing electricity access and developing approaches to support digital businesses will aid in economic recovery and continue to close the digital divide. While sub-Saharan Africa has seen an acceleration of mobile data traffic during COVID-19, more action still needs to be taken to support its citizens post-pandemic. Providing affordable access to mobile phones, mobile broadband subscriptions and internet access will help support the recovering economy and alleviate poverty in the region.

Diana Dopheide
Photo:Flickr

Improving Energy in AfricaOne in 10 people in the world (800 million) have no access to electricity and the access of an additional 2.8 billion people is considered insufficient and unreliable. In regions with insufficient access to electricity, the standard of living is poor, particularly with regard to adequate healthcare and education. Africa is such a region. Half of the population of sub-Saharan Africa lives without electricity. Improving energy in Africa is essential for economic growth and prosperity across the continent.

The Consequences of Inadequate Energy Access

Energy is vital to reduce the cost of business activities and for creating economic opportunities and jobs. More than 640 million Africans lack access to electricity. When the sun sets for these individuals, workable hours in the day end. Insufficient access to energy can also restrict the economy more indirectly, by way of increased risk of deaths related to wood-burning stoves, restricted hospital and emergency services and compromised access to education.

Along with appropriate infrastructure, household health and productivity are essential for boosting economies. The persistent use of wood-burning stoves is evidence of lacking infrastructure that presents a burden to health and productivity. This dated method has drawbacks that include indoor pollution, deforestation and unpaid time spent collecting biomass fuel. In 2017, an estimated 600,000 Africans died due to indoor pollution.

Fulfilling household responsibilities requires more time and must be done within restricted hours when electricity is unavailable. These responsibilities often fall on women and children and prevent their participation in the formal economy or pursuit of education that could encourage later participation. African economies suffer because of these barriers to participation. Industrialization is key to economic growth in Africa. To industrialize the continent, energy in Africa needs to be sustainable and easily accessible to all.

Improving Energy in Africa

Africa already has significant capacity for improvements in energy. Much of this potential lies in renewable energy sources. For example, one-fifth of Africa’s current energy is produced using hydropower. Hydropower, however, is only being utilized to one-tenth of its potential. Along with hydropower energy, solar, biomass, wind and geothermal energy all show promise for further development.

There are several existing avenues for further development of energy in Africa. As a shift toward renewable energy is gaining momentum across the globe, largely due to its environmental advantages, the resulting new and affordable technologies may provide the needed boost to further industrialization in Africa. Ensuring that renewable energy innovations reach Africa and are suited to build on current capabilities is essential for economic growth throughout the continent.

The 2020 African Economic Conference (AEC)

The African Development Bank (AfDB), the Economic Commission for Africa and the United Nations Development Programme jointly hosted the 2020 African Economic Conference (AEC) from Dec. 8 to 10. The conference facilitated presentations and discussions among leading academics, early-career researchers, policymakers and decision-makers. The central theme of the conference was how to ensure continued sustainable development in Africa amid the challenges posed by the COVID-19 pandemic. Specific topics included the role of governments and private institutions in regulating and developing African economies, adjusting goals and methods to conditions brought on by COVID-19 and preparing Africa for future resilience in crisis. The conference has been held since 2006 and helps to maximally inform efforts toward development in Africa, consider the challenges unique to local economies and emphasizes the importance of sustainable and renewable energy.

The New Deal on Energy in Africa

The AfDB Group is leading the New Deal on Energy in Africa to help develop energy in Africa and achieve universal electricity access for Africans by 2025. Its strategy is to build awareness of barriers to economic development, secure innovative funding for energy developments and strengthen energy policy and regulation. According to the AfDB, without stable energy in Africa, the U.N. Sustainable Development Goals will not be achieved. The emphasized ideal for energy in Africa is renewable; nevertheless, efficient and less expensive methods of energy production can quickly work to stimulate the economy. Gas will be an important transition fuel as efforts are made to establish cleaner, maintainable methods.

Electricity Access for Economic Growth

Improving energy in Africa means that the continent needs reliable power grids and universal access to electricity to further economic stability. The path to sustainable energy in Africa is evolving thanks to new momentum derived from the global and continental potential for renewable energy development. Keeping energy progress in mind throughout pandemic response efforts is a goal of international organizations as they work together with Africa toward economic growth across the continent.

Payton Unger
Photo: Flickr

Tourism in Latin America ReducesLatin America is a vast region with diverse weather, geography, culture and foods. Each year, millions of tourists flock to Latin America to enjoy its natural beauty. A vacation haven, tourism in Latin America is a driving force for economic development in the region. Furthermore, tourism in Latin America reduces poverty.

Tourism in Latin America

From the beaches of Cuba to the Andes mountains in Peru, any traveler can find a destination of their preference. The most visited countries in Latin America are Mexico, Brazil and Argentina. According to the World Bank, more than 113 million tourists traveled to Latin America in 2018, bringing $103 billion worth of revenue. Tourism in Latin America has created more than 15 million jobs, which accounts for 7.6% of all employment. Furthermore, international tourism contributes roughly $348 billion to the GDP of the countries in the region.

Ecotourism in Costa Rica

According to the World Tourism Organization (UNWTO), Central America saw a 7.3% growth in its tourism sector, the biggest subregional growth in Latin America. Moreover, the country of Costa Rica has attracted millions of international visitors thanks to its ecotourism. Costa Rica is a leader in preserving its environment while attracting millions to come and enjoy its natural beauty. Beaches, rainforests, volcanoes and wildlife attract tourists which contributes to the economic development of the nation. A study conducted by the National Academy of Sciences correlates ecotourism with improving the lives of Costa Ricans. The study found those living near protected areas and parks saw a 16% reduction in poverty. Furthermore, tourism in the country accounts for 5% of the GDP.

Poverty Reduction in the Dominican Republic

Punta Cana is the dream destination for many, with captivating views of the ocean and exciting nightlife, the beach town welcomes 60% of all Dominican Republic’s tourists. Moreover, the country has benefited more from international tourism than any other Latin American nation. The tourism industry contributes to 9.5% of the island nation’s GDP. Even though poverty is still an issue for the country, extreme poverty decreased to 1.6% of the population in 2018. Furthermore, malnourishment has also decreased and life expectancy has increased. Tourism has steadily contributed to the well-being of Dominicans.

COVID-19 and Mexico

Mexico’s tourism is very important for its economy. Mexico is dependent on its tourism sector since it accounts for 16.1% of its GDP and employs nearly nine million people. Destinations such as Cancun, Puerto Vallarta and Cabo are very popular for tourists to visit. Furthermore, Mexico’s tourism was thriving until the COVID-19 pandemic brought challenges to the country. The pandemic brought a halt to tourism and hurt the economy of Mexico. Nonetheless, Mexico still manages to keep the industry alive. Mexico began to limit hotel and restaurant capacity to curtail the virus. Mexico is also working with the CDC to ensure U.S. travelers going back to the United States are returning uninfected. Even though tourism has decreased because of the pandemic, flights to the state of Quintana Roo, where Cancun and Tulum are located, were averaging 460 air arrivals compared to an average of 500 pre-pandemic.

Tourism and the Future

Tourism in Latin America has positively impacted many lives across the region. The U.N. acknowledges that tourism is a way for a developing country to economically sustain itself. Moreover, tourism in Latin America reduces poverty. Challenges such as the COVID-19 pandemic put a setback to the growing tourism sector. Regardless, Latin America has an abundance of beauty and adventure, thus ensuring tourism will be kept alive once the pandemic is over.

– Andy Calderon Lanza
Photo: Flickr

Impact Investing in RwandaImpact investing is a growing industry with huge potential for combatting poverty around the world. The practice consists of firms and individuals directing capital to businesses and enterprises that have the capacity to generate social or environmental benefits. Traditional businesses tend to avoid such investments due to the high level of risk, low liquidity and general difficulty to exit if returns are not satisfactory. Most impact investing is done by particularly adventurous capitalists as well as nongovernmental organizations (NGOs) that aim to create social change. Impact investing in Rwanda, in particular, has yielded positive results.

AgDevCo

AgDevCo is an example of a social impact investing firm that aims to invest with the intention of reducing poverty and increasing opportunity in developing regions. Based in the United Kingdom, AgDevCo was incorporated in 2009 and has engaged in numerous projects since.

The firm’s specific area of investment is in African agriculture, where it believes that impactful investments have the potential to be a significant force in reducing poverty. The firm is currently investing in eight different African countries. Its portfolio includes $135 million worth of funds in 50 different companies. These investments have engaged more than 526,000 customers and have created or sustained more than 15,000 different jobs.

Uzima Chicken Limited

One of its investment projects is a partnership with the East African poultry company, Uzima Chicken Limited. Uzima Chicken produces and distributes the Sasso breed of chickens. Sasso chickens are resistant to disease and can feed through scavenging. These beneficial traits make Sasso chickens particularly useful in the struggle to reduce poverty in East Africa.

In 2017, AgDevCo invested $3 million to support Uzima’s establishment in Rwanda. As a result of the investment, Uzima gained funds necessary for rapid operational growth as a domestic producer of poultry. This is in line with the government of Rwanda’s strategy to achieve poultry self-sufficiency in two to three years. Uzima has also been able to expand into Uganda, where its business is rapidly scaling upwards.

The Uzima Business Model

The Uzima model of business involves the employment of company agents who raise the chicks for six to eight weeks before selling them to low-income households in rural areas. Such a model provides benefits to farmers, who can increase income through the sale of the more valuable Sasso chickens, as well as the agents.

Agents typically make a 25% profit from selling chickens. A survey of Uzima agents found that, on average, 27% of household income came from selling Sasso chickens. By providing a reliable source of extra income for employed agents, Uzima helps to alleviate the burdens of poverty for these people. As of 2017, the efforts had created 150 new jobs, 40% of which are held by women. Rwandan women have benefitted significantly from Uzima’s employment with 64% of women agents reporting that the income they earned from selling Sasso chickens led to a positive change in the decision-making power they had in their households.

Impact Investments for Poverty Reduction

Uzima’s Sasso chickens grow faster, live longer, produce more eggs and have higher market prices. They are disease-resistant and thrive in local, rural conditions. Out of all the customers buying these chickens, 54% live below the $2.50 poverty line. AgDevCo investment gave Uzima the capital necessary for operational expansion, and as a result, a greater quantity of impoverished people in East Africa could buy superior chickens and increase income. Uzima’s business also has clear potential for women’s empowerment, making it a great tool in the effort to reduce poverty and inequality in the region.

The impact investments made by firms like AgDevCo have clearly measurable impacts in impoverished regions, particularly noting the success of impact investing in Rwanda. This makes impact investment firms an important part of the global effort to reduce all poverty.

Haroun Siddiqui
Photo: Flickr

Improving Education in KashmirThe conflict in Kashmir has disproportionately affected education due to a variety of national as well as domestic threats. Children, in particular, are being significantly affected, Education in Kashmir was halted far before COVID-19 affected the rest of the world. Improving education in Kashmir is essential for poverty reduction.

Political Unrest and COVID-19

In August 2019, Article 370 of the Indian constitution that applied to Jammu and Kashmir was abrogated. Repealing this article revoked Kashmir’s semi-autonomous ‘special status’ as a state. As a way to curb anticipated unrest in the state, the Indian government blocked internet and phone lines. This crisis along with the COVID-19 pandemic in 2020 has put the future of education in Kashmir on shaky ground, reflective of its political landscape. Between 2019 and 2020, schools in Kashmir officially functioned for as little as 100 days.

Internet Connectivity in Kashmir

According to the latest census, 68.74% of Jammu and Kashmir’s population are literate and males are 20% more literate than females. Roughly 27.21 % of the state of Kashmir live in rural areas where access to education is a key issue, especially during COVID-19. Over time, the Indian government has facilitated low-speed internet to select areas up to the speed of 2G. The issue is that a higher speed of internet is required for classes to be facilitated via Zoom, Skype or to be watched on YouTube. Other than the children, educators, college and graduate students are faced with a continuing lag that has affected education in Kashmir. The government has whitelisted some websites and restored higher speed connectivity in some districts of the state.

Aawo Padhain

The Directorate of School Education Kashmir has set up “Aawo Padhain” (Come Lets Study). It is a portal that is filled with E-content and video-based classes for children to continue studying during the lockdown. The center is also equipped with a free Child-Line for children in need of aid and assistance. Additionally, Whatsapp has become a portal for teachers to send educational videos to students. While this initiative addresses the issue of continuing education during COVID-19, more needs to be done to address the other issues that affect education in Kashmir. Improving education in Kashmir will have benefits that are far-reaching.

Education Reform

The National Educational Policy 2020 (NEP 2020), approved by the government on July 29, 2020, was introduced to implement changes to education, with special focus on Jammu and Kashmir. The policy is based on the pillars of “access, equity, quality, affordability, accountability” and will transform India into a “vibrant knowledge hub,” tweeted Prime Minister Narendra Modi. However, the success of such a policy depends on its implementation. Its effectiveness, or lack thereof, will be seen in due time. For successful educational transformation, Kashmir also needs well-qualified teachers, access to electricity, the internet, computers, technology and libraries. Furthermore, country-wide internet bans should not be allowed.

Kashmiri students have lived in a life of lockdown longer than the rest of the world has, with their education impacted long before COVID-19 came about. To bridge the overall gap in education in Kashmir, it is essential for the country to receive assistance to implement educational reform for improving education in Kashmir.

–  Anuja Mukherjee
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