Information and stories about poverty reduction.

Poverty in Cyprus
Cyprus is an island country in the Mediterranean Sea, just south of Turkey, with a population of 1.2 million. The Republic of Cyprus, the country’s only internationally recognized government and part of the European Union, controls 60% of the southern region of the island. The Turkish Republic of Northern Cyprus controls 36% of land in the north region of the island. The division between the North and South republics of Cyprus has created a power struggle of high tension, leaving the island politically unstable. Despite this instability, Cyprus has seen an improvement in decreasing poverty rates, as well as an expanding economy. Here are seven facts about poverty in Cyprus.

7 Facts About Poverty in Cyprus

  1. Cyprus’s economy is growing and expanding. Its tourism sector saw a significant boost in 2018 when over four million travelers visited the island, a 7.8% increase from 2017. This increase in tourism correlates to its increase in GDP per capita, rising from 25,957.85 to 28,341.05 in 2018. Experts expect Cyprus’s GDP per capita to increase even more in 2020, with models estimating a 1.03% increase.
  2. When Cyprus gained independence in 1960, it began transitioning to a service economy. Cyprus’s economy started focusing more on its tourism and service sectors instead of agriculture. This allowed the GDP to rise. As of 2020, Cyprus’s GDP is $34.5 billion, a 3.9% growth since 2019.
  3. Cyprus’s unemployment rate has decreased. With the expansion of Cyprus’s economy came more jobs in the tourism and service sectors. As a result, unemployment rates have decreased.  Since 2015, the country has cut its unemployment rate almost in half, from 14.91% in 2015 to 7.92% in 2019.
  4. Education in Cyprus is growing. Today, Cyprus has five private universities and three public ones. Both are rapidly expanding and connecting with other institutions across the globe. These schools continuously put millions of dollars back into the local economy, thus, providing thousands of jobs for the community.
  5. Life-expectancy is increasing in Cyprus. As of 2020, the island’s life expectancy is 81.05 years, a 0.19% increase from 2019. Future projections from U.N. data predict a continuous upward trend.
  6. Cyprus does not have a standard minimum wage law for all workers. However, some occupations do have certain wage requirements set by the cabinet. These requirements are reviewed and revised annually in an effort to be fair to citizens. Since there is no countrywide minimum wage, however, this leaves room for many disparities in poverty and wealth.
  7. The Economic Interdependence Project is a partnership between the Republic of Cyprus and the Turkish Republic of Cyprus Chambers of Commerce. Created in 2009, the project’s goal is to intervene and encourage partnerships between businesses of both parties. The project hopes to reveal the benefits of the two communities working together to improve Cyprus’s economic stability and growth. They have been able to open the first island-wide business directory with over 200 businesses. Additionally, the project also gave Market Research Grants to some businesses. 

Despite Cyprus’s political tensions between the southern and northern regions, the country has expanded its economy, increased tourism and implemented programs that encourage business relationships. These factors have allowed for an overall decrease in poverty in Cyprus. Hopefully, this progress will continue in the coming years.

– George Hashemi 
Photo: Wikimedia Commons

poverty relief reduces disease
The universal rise in global living standards has helped combat diseases, spurred on by international poverty relief efforts. In fact, one study found that reducing poverty was just as effective as medicine in reducing tuberculosis. Poor health drains an individual’s ability to provide for themselves and others, trapping and perpetuating a cycle of poverty. Better public health increases workforce productivity, educational attainment and societal stability. Here are 5 ways poverty relief reduces disease.

5 Ways Poverty Relief Reduces Disease

  1. Better Sanitation: According to the WHO, approximately 827,000 people die each year due to “inadequate water, sanitation, and hygiene.” Poor sanitation is linked to the spread of crippling and lethal diseases such as cholera and polio, which hamper a nation’s development. By investing in the sanitation of developing nations, the rate of disease decreases and the food supply improves. Furthermore, an all around healthier society emerges that can contribute more to the global economy. In fact, a 2012 WHO study found that “for every U.S. $1.00 invested in sanitation, there was a return of U.S. $5.50 in lower health costs, more productivity, and fewer premature deaths.”
  2. Improved Health Care Industries: A hallmark of any developed nation is the quality of its health care industry. A key part of reducing poverty and improving health, is investing in health care initiatives in developing countries. When the health care industry is lacking (or even non-existent), the population experiences high levels of disease, poverty and death. Many American companies have already invested millions into the medical sectors of developing nations, however. In September 2015, General Electric Healthcare created the Sustainable Healthcare Solutions, a business unit that donates millions in money and medical equipment to developing nations.
  3. More Informative Education: Knowledge is power when it comes to fighting disease. Educational institutions provide a nation with one of the best tools to fight diseases of all kinds. According to a WHO report, “education emphasizing health prevention and informed self-help is among the most effective ways of empowering the poor to take charge of their own lives.” Schools must teach about proper sanitation, how to spot warning signs and form healthy behaviors. School health programs are also an invaluable resource in times of pandemics and disease outbreaks, as they coordinate with governments. This cooperation has helped tackle diseases, including HIV/AIDS in Sub-Saharan Africa. Eritrea, for example, has one of the lowest rates of infection in the region (less than 1%), partially due to an increase in HIV/AIDS education measures.
  4. Enhanced Nutrition: Malnutrition and food insecurity weaken the immune systems of the impoverished and significantly lower one’s quality of life. Millions of children each year die from famine or end up crippled due to dietary deficiencies. By investing in and supporting agricultural sectors of developing nations, aid programs help in not only decreasing poverty, but also in cutting down on illness of all kinds. Likewise, international aid during conflicts and natural disasters is crucial to ensuring the continued health and productivity of a country. One nation combating such an issue is Tanzania. With the help of aid organizations like UNICEF, Tanzania has decreased malnutrition for children under five.
  5. More Effective Government Services: Arguably encompassing all the previous categories, governments with more money and resources can effectively help stop diseases. A healthy general population leads to more productivity, which increases tax revenue. Central governments can then invest that money back into health care and sanitation, creating a positive feedback loop. Governments also provide a centralized authority that can cooperate with organizations like the WHO. In the 21st century, communication and cooperation between world governments is key to halting pandemics and working on cures.

Impact on COVID-19

The COVID-19 pandemic is a prime example of how improved government resources provide poverty relief, which helps combat the virus in the developing world. For example, Kenya has less than 2,000 cases due to effective government actions in curbing the spread of the virus. The systems and governmental services built up over past decades sprang into action and coordinated with organizations like the WHO. The government has also implemented various economic measures to help mitigate the negative economic side-effects. Moving forward, it is essential that governments and humanitarian organizations continue to take into account the importance of poverty relief for disease reduction.

– Malcolm Schulz 
Photo: Flickr

India vs Pakistan: Not Just Common Enemies
A man from India and a man from Pakistan stood proudly together representing their nations at a T-20 Cricket World Cup game in 2012. This is significant, as, in the year 1947, after India became independent from the British Empire, the Muslim minorities in the nation felt that they were experiencing underrepresentation and demanded partition. As a result of their religious divisions, India and Pakistan divided into two sovereign nations. About 70 years later, their harsh differences continue to exist. It is important to note that despite their religious and lingual difference, their poverty rates are both high. In India, about 21.9% of people lived below the poverty line as of 2011. Meanwhile, in Pakistan, about 24.3% of people lived below the poverty line as of 2015.

Religious Divisions

The main reason behind India’s partition was its religious divisions. Due to the Hindu majority within the government, the Muslim minorities felt that the government policies would only benefit the Hindus. Moreover, they also felt that the government would misrepresent them. Muhammed Ali Jinnah, a Pakistani politician, led Pakistan and developed a Muslim majority nation, while Jawaharlal Nehru, India’s first prime minister, developed a Hindu majority of India. Religion became the foundation of the partition movement. Many still view it as the basis of the conflict between the two nations.

Consequently, about 15 million people suffered displacement, as the Muslims in India migrated towards the newly established Pakistan. Along with this, about 1 million and more people died due to religious conflicts. The political conflicts between the two nations had led many other citizens to suffer the consequences. As a result, many families lost important members, and some became homeless.

Poverty in India

While the two nations have often been enemies, they have a common issue of high poverty rates, with India at 21.9% in 2011 and 29.5% in 2015. The causes of the high rates of poverty are similar in both nations as well.

A common cause of poverty in both nations is hunger, unemployment and lack of education. In India, about 200 million people do not have access to decent food. In addition, the lack of employment with proper wages is difficult to access, since many Indian people live in small rural villages. UNICEF revealed that about 25% of children in India do not have access to education in India. In fact, often girls in India have to learn household jobs. Due to this unequal treatment of women, it is difficult for them to find jobs with a good wage.

Poverty in Pakistan

Pakistan has seen a similar trend to India. Typically, women and children find it really difficult to find access to food. Due to inflation, many resources are simply unaffordable.

In terms of employment, many Pakistani citizens live in rural areas. Consequently, they do not have access to proper jobs. Many who have jobs do not have proper wages. Moreover, about 90 million people lived on less than $2 a day in 2011. This makes poverty harder to overcome.

Inequality amongst women and young girls also increases poverty levels. Like India, women have to learn household tasks so that they have experience when they marry. Additionally, people often look down on women who work outside the house. Efforts to educate women have made a significant impact on this. Other influences on poverty include violence, ongoing conflicts with terrorist groups, malnutrition, infant mortality rates and child labor.

Solutions to Poverty in India

In India, the government is working to combat poverty in a variety of different ways. An initiative the government has launched to help decrease poverty is Pradhan Mantri Awas Yojana or Housing For All. It focuses on providing the poor with affordable housing. Additionally, the program tries to empower the women by mandatorily making them the owner or co-owner of the house. Another program that the government launched is the Atal Mission For Urban Rejuvenation and Transformation. This program focuses on improving infrastructure and developing a proper sewage network, along with better water supplies for urbanization. In addition, the nation gets support from international organizations such as the U.N.

Solutions to Poverty in Pakistan

Pakistan’s government is also working effectively to decrease poverty levels. A program that the Pakistani government launched to help combat poverty is known as the Benazir Income Support Program. It focuses on assisting the poor financially. The program is essentially a cash transfer program that forces on reducing poverty and elevating the status of marginalized and underprivileged communities. Additionally, Pakistan receives plenty of support from international organizations such as USAID and the World Bank.

India and Pakistan continue to have political conflicts between each other. Similar to the relationship between the United States and Russia, the two nations have competitive views towards each other. Despite their differences, they have similar issues internally, such as poverty. However, although the new nations have significantly high levels of poverty, they have decreased the rates. Within a period of 10 years, 2006 to 2016, India lifted about 271 million people out of poverty. Pakistan significantly lowered its poverty rates as well and now has the second-lowest headcount poverty rate in South Asia. As urbanization continues in both countries, reductions in poverty are occurring, although at a slow rate.

Krishna Panchal
Photo: Flickr

Reduce Poverty in Romania
Romania, like much of the former Communist Bloc, experienced extreme poverty under communism. Although communist rule ended over 30 years ago, the country still experiences the lingering effects of communism on its economy and quality of life. In 2017, approximately 4.6 million Romanians lived at or below the Romanian national poverty line, a standard assessed by the cost of living and certain social policies. Poverty in Romania concentrates in rural areas, where about 46% of the population lives, according to recent estimates. Here are the ways in which the government seeks to reduce poverty in Romania.

The National Strategy on Social Inclusion and Poverty Reduction

In 2015, the European Union (E.U.) and the Romanian government devised the National Strategy on Social Inclusion and Poverty Reduction to help reduce poverty in Romania. The strategy aimed to lift 580,000 people from poverty by 2020 and increase employment for poor and other vulnerable groups. It also provided financial support for poor or at-risk citizens. Additionally, it promoted social inclusion of marginalized communities such as the Roma people, and improved social services like health care and education. In addition to this plan, Romania also passed a 47-point plan to combat poverty in 2015.

Many have regarded this plan as overly ambitious. Unfortunately, much of the National Strategy on Social Inclusion and Poverty Reduction remains only on paper. This is not to say, however, that it has not made an impact on reducing poverty in Romania. Since the creation of this plan, the percentage of Romania’s population at risk of living in poverty has dropped from 40.2 percent in 2015 to 35.7 percent in 2017. Since the implementation of the National Strategy on Social Inclusion and Poverty, the Romanian government has been able to allocate more funding for active labor market policies, including financial bonuses and job training. Additionally, Romania has received funding from the European Social Fund for projects to increase the effectiveness of the Romanian National Employment Agency. Despite these improvements, Romania still ranks as the second most impoverished nation in the E.U., after Bulgaria.

Looking Forward

In addition to continuing the work on current programs, the country is looking forward to more improvements in the coming years. By 2023, the Romanian government has set a goal of improving access to education. Increasing educational opportunities in Romania is especially important. The country has the highest child poverty rate in the E.U. at nearly 50%. Children living in poverty are more likely to have to leave school, further perpetuating the cycle of poverty in Romania. By making education more accessible, children at risk of poverty have more opportunities to break the cycle.

Despite drastic improvements in the levels of poverty and social inclusion in Romania, millions of Romanians are still at risk. The Romanian government and E.U. implemented the National Strategy on Social Inclusion and Poverty Reduction in 2015. Unfortunately, problems obtaining funding have made it difficult to implement this plan in its entirety. However, some changes have occurred, improving the situation for a small portion of the Romanian population. The government’s future plans to reduce poverty in Romania, including improving access to education for impoverished children, aim to continue to improve the country’s poverty crisis.

– Jessica Cohen
Photo: Flickr

Poverty in Indonesia
Since the devastating impact of the 1997 Asian Financial Crisis (AFC), Indonesia has shown profound economic growth. Since 1998, it has boasted a greater than 5% compound annual GDP growth rate, ahead of the global average of below 3%. Indonesia now ranks as the 16th largest economy in the world, up from 36th in 1998. Concomitant with this economic improvement has been a noticeable reduction in poverty in the country. Most recently, poverty in the country is below 5% of the population versus 67% 30 years ago. By comparison, approximately 10% of the global population lives below the international poverty line. Yet despite this promising data, poverty in Indonesia remains a major issue. Here are six facts about poverty in Indonesia.

6 Facts About Poverty in Indonesia

  1. The rate of poverty reduction is slowing, but poverty is low. Indonesia’s efforts to grow its economy showed great results in the years immediately following the AFC. Rapid industrialization, increased global integration and a focus on domestic infrastructure all helped in this regard. This resulted in relatively dramatic improvements in poverty. After an eight-year period of decline, however, the rate of reduction has slowed to 9% in recent years. Despite a slowing in the rate of reduction, the percentage of the Indonesian population living in poverty is at the lowest level since 1984 (4.6%).
  2. CARE, an international humanitarian agency, has been working to assist Indonesia’s poor particularly during emergencies. Indonesia is prone to natural disasters like earthquakes and floods, so CARE has worked to provide Indonesians with food, shelter, water and medical supplies. After the 2004 Indian Ocean tsunami, CARE aided 350,000 Indonesians and helped them rebuild their communities. Non-governmental organizations like CARE are key to assisting the government in protecting Indonesia’s poor after frequent disasters and emergencies.
  3. Income disparity is growing. Indonesia’s economic growth has flowed disproportionately to the wealthy. The country’s Gini coefficient, a measure of a country’s income disparity, has increased from 28.5 in 2000 to 38.1 in 2017 (lower is better). Oxfam reported that in 2014, the richest 1% of Indonesians owned 50% of the nation’s wealth. Not surprisingly, Indonesia’s rural inhabitants are worse off than their urban counterparts, with about 1.5 times more incidences of poverty on an absolute basis. One can also see this in the geographic distribution of poverty. Eastern Indonesia, the more rural part of the country, fares worse. President Joko Widodo has noted that improving income inequality is one of his top priorities. He has taken some steps to decrease income disparity, including providing direct cash transfers through its Program Keluarga Harapan, creating more social assistance programs, investing in infrastructure and creating health and education protections.
  4. The near-poor are a significant group in Indonesia. While Indonesia’s reduction in poverty is impressive when including those who are near-poor, the results are not as positive. Many in Indonesia live precariously close to the poverty line and are at risk of falling back into poverty. The Asian Development Bank highlights that over half of the poor in Indonesia were not poor the year before. Furthermore, a quarter of Indonesians will suffer from poverty at least once every three years. Even though only 5% of Indonesians live below the poverty line today, as many as 25% live just above it.
  5. Indonesia must watch inflation. Since 2016, inflation in Indonesia has been below 4%. The government and the Bank of Indonesia established the range of 3% to 4%. However, with so many living at or close to poverty, changes in prices can have deleterious impacts, disproportionately so on the poor. Statistics Indonesia notes that food represents a 43% weight in Indonesia’s CPI basket, putting a degree of focus on food prices, especially given their historical volatility. The Indonesian government has focused in this area, recognizing that stable rice prices are essential for steady economic prosperity. Nevertheless, food prices remain exposed to exogenous shocks.
  6. COVID-19 is having a huge impact. The Indonesian government did not impose restrictions relating to the COVID-19 pandemic until April 10, 2020, almost six weeks after the identification of the first case in West Java. Unfortunately, the economic fallout from COVID-19 will have material effects on Indonesia’s poor and near-poor, underlining the fragility of the last 30 years of Indonesia’s efforts. In mid-April, 2020, Indonesia’s finance minister predicted that Q2 GDP growth could fall to about 1%, after the weakest rate of growth in nearly 20 years in Q1. COVID-19 cases surged rapidly after President Widodo hesitated to implement a nationwide lockdown. In response, he declared a national health emergency and worked to increase the number of test kits, personal protective equipment and ventilators available in the country. Additionally, he passed a stimulus package worth $8 billion to stimulate the economy, with $324 million going towards helping low-income households.

These six facts about poverty in Indonesia have shown that Indonesia’s government has put much effort into improving the conditions for its poor. Against a backdrop of economic growth, President Widodo increased spending on social assistance, health, education and infrastructure. Additionally, CARE’s continual aid has substantially reduced poverty in Indonesia since the AFC.  However, with so many near the poverty line, those results are fragile. With the unprecedented impact of COVID-19, much of that work could become obsolete.

– Harry Yeung
Photo: Flickr

poverty in MadagascarMadagascar is the fifth-largest island in the world and boasts an array of natural resources. Despite this, poverty in Madagascar ranks among the highest in the world. Due to an upturn in the economy, things may be looking up, but there is still much work to be done before conditions truly improve. Here are 10 facts about poverty in Madagascar.

10 Facts About Poverty in Madagascar

  1. The majority of people in Madagascar live in extreme poverty. Currently, 75% of the population of Madagascar lives on less than $1.90 per day. This means that three-fourths of the 25.6 million inhabitants of Madagascar live beneath the international poverty line as defined by the World Bank.
  2. Children are among the hardest hit by poverty in Madagascar. More than 80% of those under 18 in Madagascar live in extreme poverty. Additionally, UNICEF declares that chronic malnutrition affects almost half of children under five, with stunted growth being a major concern.
  3. Extreme poverty pushes children in Madagascar into child labor. Approximately 5.7 million children, about half of the population under 18, participate in labor of some kind. Many of these children work instead of attending school. One in four child laborers perform work that is potentially damaging to their health.
  4. The island nation’s unique and isolated geography is also a contributing factor to poverty. For the country’s rural poor, who largely subsist on farming and fishing, climate change has been particularly detrimental. Water levels continue to rise, and Madagascar’s location makes it very susceptible to cyclones. These factors lead to drought and food insecurity in the already poor nation.
  5. Though 80% of Madagascar’s residents live in rural areas, the country is not currently able to sustain itself. Madagascar has to import 15% of essentials like rice and milk. Slash and burn farming techniques and over-farming has led to deforestation on a large scale. Only 10% of Madagascar’s original rainforest is still intact.
  6. Madagascar’s poor infrastructure also negatively affects its economy. Of the more than 30,000 miles of roads in the country, only about 11% are paved. Many of these roads become impossible to pass during the nation’s rainy season. Furthermore, railroads are not in much better shape; there are two unconnected lines in poor condition.
  7. Despite the aforementioned woes, Madagascar has seen rapid economic growth in the past few years. 2018 saw a growth of 5.1%, bringing with it a two percent increase in per capita income. Sectors such as exports, transportation and finance drive this economic growth. However, poverty continues to decrease at a slow rate: only about three percent since 2012. This slow rate most likely results from the majority of population working in agriculture, an industry that has not quite caught up with modern trends.
  8. Water scarcity and sanitation is a significant problem in Madagascar. Only about half of Madagascar’s population has access to clean water. In places with limited access to water, women and girls often bear the brunt of the work of having to collect it. This time-consuming and physically difficult work hinders their ability to attend school and earn income. In Southern Madagascar, 90% of houses lack basic sanitation needs. Open defecation is common, leading to the prevalence of waterborne diseases such as diarrhea.
  9. WaterAid is an organization that seeks to give everyone across the globe access to clean water, toilets and proper hygiene, including those in Madagascar. The organization launched its water, sanitation and hygiene plan (WASH) in Madagascar, and coordinated with local authorities to improve conditions across the nation. The National Action Plan, launched in 2017, hopes to reduce growth stunting in children under five by nearly 10%, and also aims to increase access to drinking water and proper sanitation, to 65% and 30% of households, respectively.
  10. SEED Madagascar is a non-governmental organization (NGO) that works specifically in the Anosy region of Southeast Madagascar. The organization creates projects related to education, community health, environmental conservation and sustainable livelihoods. All of SEED’s programs are suggested by the people of Madagascar themselves. Ideally one day, they will independently create and implement projects. In one such project, a 20,000 liter rainwater harvesting system placed on the roof of a primary school in Ambandrika provided clean water for 144 school children and 750 members of the wider community. Additional benefits of SEED’s work include allowing more time to create marketable goods as well as more time to care for children.

Poverty in Madagascar is widespread, and the situation will not improve if it is ignored. Economic growth and organizations like SEED Madagascar and WaterAid are taking important steps, but the issue must continue to be addressed.

– Joshua Roberts
Photo: Flickr

poverty in Bangladesh
About one in four Bangladeshis live in poverty, making poverty in Bangladesh an ongoing fight for the nation. However, there has been significant economic growth and improved education and infrastructure. With international development assistance, poverty in Bangladesh is on a downward trajectory, especially in rural areas. These seven facts about poverty in Bangladesh show the country’s improvements.

 7 Facts About Poverty in Bangladesh

  1. International Assistance. The International Development Association (IDA) has been a large part of Bangladesh’s success in education, health and infrastructure. Funded by member countries, IDA coordinates donor assistance. Additionally, IDA also works to provide development assistance to countries around the world. Bangladesh is one of the largest recipients of IDA funding, with its program totaling $11.3 billion. Multilateral organizations, like the Asian World Bank and the United Nations, have worked with the IDA to lower poverty in Bangladesh.
  2. Economic Growth. Through sustained economic growth in recent years, Bangladesh has made strides in alleviating poverty. Steady growth in its GDP allowed Bangladesh to reach lower-middle-income status in 2015. Bangladesh remains one of the fastest-growing economies among developing nations, and its GDP in 2018 was $274.02 billion, a 9.73% increase from 2017. With these steady increases, the GDP should grow another 8% in 2020.
  3. Education. Bangladesh has seen an increase in education enrollment and more girls are going to school. Enrollment rate at the primary school level increased from 80% in 2000 to above 90% in 2015, and from 45% to 62% at the secondary school level. Bangladesh has also achieved gender equality in education enrollment; it sent almost 6.5 million girls to secondary school in 2015. This makes the nation a frontrunner among developing countries to achieve gender parity in education.
  4. Health. Bangladesh has made important progress in its health indicators over the past few decades. This includes improvements in maternal and child health. There was a 40% reduction in maternal mortality, from 320 deaths per 100,000 live births in 2000 to 194 deaths in 2010. USAID has worked with local groups to provide high-quality reproductive services and bring integrated health care to Bangladeshis as well.
  5. Agricultural Growth. The agriculture sector is essential to Bangladesh, and its growth has been among the highest in the world for the past 25 years. Through IDA, more than 1 million households have modernized food practices and 500,000 households have increased grain reserve. Natural disasters are a primary threat to Bangladesh’s success in agricultural production. IDA is also financing almost $1.5 billion in aid to Bangladesh’s resistance against natural disasters. This leads to further increases in agricultural production and promoting food security.
  6. Sustainable Development Goals. According to the United Nations Development Programme, Bangladesh is making strides in attaining the 17 Sustainable Development Goals (SDGs) to end poverty and improve quality of life. For example, Bangladesh is well on its way towards reaching the access of 100% of households to electricity by 2025, which is SDG 7. Bangladesh has also seen improvements in sanitation and access to clean water, which the SDGs also include. In 2019, 87% of the population had access to clean water and access to sanitation increased by 26%.
  7. Rural Infrastructure: Efforts to alleviate poverty in Bangladesh have occurred in rural areas, and IDA has provided support to build roads and increase access to water in these areas. According to the World Bank, 1.1 million people in rural areas now have access to clean water, and support measures have led to the paving of 800 kilometers of new roads in these areas. This infrastructure allows for easier transportation to school and the creation of jobs for men and women, improving the quality of life in several rural areas.

These seven facts about poverty in Bangladesh show that efforts to alleviate poverty in the country have been remarkably successful in the past few decades. Still, much work remains essential in order to alleviate poverty in urban areas and bring about continued growth in Bangladesh’s economy, infrastructure and access to food security. However, with continued international assistance and Bangladesh’s commitment to reducing poverty, there is hope that Bangladesh will continue to be a global model for poverty reduction.

– Anita Durairaj
Photo: Wikimedia

Poverty in the Maldives
People might know the Maldives for its clean blue waters, luxurious resorts and the millions of tourists that visit the archipelago but may not know that the small island nation continues to tussle for its economy and against poverty. Poverty in the Maldives dates back to the early 1980s when it became part of a list of the 20 poorest countries in the world. The 2004 tsunami further weakened the economy of the island nation, which consists of 1,192 tropical islands. A global financial crisis emerged in 2008, putting the country in a vulnerable position.

Current Scenario

Statistics from the Asian Development Bank state that the GDP in the Maldives rose to $4.51 billion in 2018 from a mere $42.46 million in 1979. Wealth inequality does not persist in the Maldives and poverty rates vary across geographic locations. As the World Bank expected, the GDP growth slowed down from 6.7 percent in 2018 to 5.2 percent in 2019. Poverty in the Maldives is no longer a crisis, but the risks remain high.

Sustainable Development Goals

The country has been victorious in achieving a few of its Sustainable Development Goals (SDGs). Observations have determined that the annual rise in GDP is around 5 percent. The tourism industry, fisheries and other sources have played a significant role in strengthening the economy and employment rate. Half of the economy of the island nation comes from tourism and another 12 percent comes from the fisheries across the islands.

There might be people with very low incomes but there are no urban beggars or slum dwellers, even with an increase in the rural-urban migration rates. Recently, literacy rates in the Maldives have reached around 100 percent. There are no major causes of diseases and infections in the Maldives. The starvation rate is zero as well.

Unemployment

In 2018, the unemployment rate was 6.1 percent, with youth unemployment making up 15.3 percent. More than half of the working strata of people are employees in the tourism sector or fisheries, which often makes them fall sick. About 8.2 percent of the total population falls below the national poverty line.

Life Span

The life spans of citizens have increased considerably thanks to the rapid and drastic expansion in economy and infrastructure. According to the World Bank, the Maldives’ life expectancy in 2018 reached 77.2 years. Meanwhile, life expectancy was only 69.2 years in the year 2000. The increase in life expectancy has been considerable. However, there is a certain limitation to that as well since the island nation has limited infrastructure and resources.

Although the GDP increases every year, this pattern in economic growth is quite irregular. New establishments in the tourism industry and infrastructure should bring the GDP to 5.5 percent in 2020.

There is no denying that the country has made drastic improvements to help the situation of poverty in the Maldives. However, the situation continues to be fragile and vulnerable. If the Maldives continues to grow its tourism industry and infrastructure, it should be able to continue to reduce poverty in the future.

Astha Mamtani
Photo: Flickr

Poverty in EgyptNearly one-third of Egyptians fall below the poverty line, with the unemployment rate trending higher than extremely impoverished countries such as Ghana, Lebanon and Zimbabwe. In 2011, lasting poverty rates and poor living conditions caused Egyptian retaliation against the government. Political instability has complicated Egypt’s foreign partnerships since that time, subsequently affecting all areas of the economy; as a result, foreign investment in the country’s resources has had notable fluctuations. The inconsistency in Egypt’s economy leaves few employment opportunities, especially among younger generations, inevitably affecting rates of poverty in Egypt.

Travel in Egypt

Typically, travelers visiting Egypt receive encouragement to exercise increased caution, per the U.S. Global Health Advisory. The country ranks two out of four on the U.S. Department of State’s safety scale; this rating indicates that the U.S. Department of State has approved travel there although tourists should recognize the possible risks. This system is not solely unique to the United States – many countries have similar regulations. However, due to the global impact of COVID-19, regular travel ratings are momentarily on hold.

Factors responsible for Egypt’s pre-pandemic, level-two status include levels of terrorism and lingering tensions with the U.S. Embassy. This score is an improvement from a travel rating of four in 2011. Egypt received this high rating during a violent national rebellion that broke out against police brutality, the poor economy and religious divides. When a country has a level-four rating, the U.S. Department of State tells Americans not to travel there.

Tourism’s Impact on Egypt’s Economy

In February 2019, research expert Amna Puri-Mirza provided a statistical analysis that demonstrated that a decline in tourism impacted the Egyptian economy. From 2010 to 2011, national profits from the tourist industry dropped 32 percent in reaction to the Egyptian rebellion. In 2015, news of a Russian airline crash that was traveling to Cairo decreased tourism from 14.7 million to 5.4 million people in 2016.

The connection between tourism and poverty in Egypt correlates with the market value of different services and goods that the country produces; profits from tourism hold a large percentage of the country’s overall income. In 2018, tourism supported 2.5 million jobs, indicating heavy reliance on the industry. When situations adversely impact tourism around the globe, this substantially impacts the economy, and in turn, poverty in Egypt.

Efforts to Reduce Poverty in Egypt

Working to ease economic stress, the Egyptian government succeeded in obtaining a loan from the International Monetary Fund in 2016. While there might be uncertainties for the future of the loan, it is certainly aiding the nation in the return of tourists. Research on Egypt’s travel and tourism show promising signs of continued recovery, according to the World Travel & Tourism Council. In 2019, Egypt’s tourism level improved by 16.5 percent from the previous year, which is higher than the global average. Such an incredible growth rate is a promising sign for the rates of poverty in Egypt.

Foreign Relations with the U.S.

Despite past tensions, the partnership between the U.S. and Egypt has greatly improved. The established relationship could substantially impact the state of poverty in Egypt. The Trump Administration announced a priority of aid for Egypt; specifically, it intends to provide economic reforms and military funds to combat radical terrorism in Egypt. “Our relationship has never been stronger. And we’re working with Egypt on many different fronts,” said President Trump. Upon continuing a solid relationship with the U.S., the Egyptian government could utilize the support in developing a sustainable economy post-loan.

Other Initiatives

Egyptian President El-Sisiis and his officials are also working on economic reform needed to reduce poverty in Egypt. Like many nations, the sudden 2020 Coronavirus outbreak presents additional obstacles in accomplishing this goal. Experts expect that Egypt’s tourism industry will lose more than 40,000 workers to unemployment as a result.

Now, more families will be at risk of falling into poverty, causing a heightened risk of exposure to COVID-19. On March 20, 2020, The World Bank Group donated $7.9 million to fund Egypt’s emergency response. The nonprofit is working with Egypt to create financial, technological and health strategies to protect citizens. Ideally, the country should be able to avoid the anticipated increase in poverty in Egypt through this aid. Assisting the Egyptian economy has become an international effort. Not only is does The World Bank intend for the aid to provide the government with resources, but it also intends to disperse it among Egypt’s citizens, especially those experiencing poverty in Egypt.

Tourism is a key source of income for the country but has recently halted. Additionally, tense international relations and a poor global image have further damaged the already struggling economy. Fortunately, new global partnerships with Egypt have aided in encouraging tourism in Egypt. While the 2020 pandemic puts this travel on hold, the response of increasing aid will support the economy and prevent further poverty in Egypt. If aid continues, Egypt will receive a great opportunity to sustain its economy and people.

GraceElise Van Valkenburg
Photo: Pixabay

Poverty in Turkey
With an increased Human Development Index (HDI) of 0.806 from 0.655 in the last decade, Turkey’s overall development has significantly increased, namely with a hike in life expectancy and education. While the execution of specific long-term policies (Development Programme for Women and Conditional Education Assistance) constantly address issues such as gender inequality and education, the refugee crisis and the disruption that COVID-19 has caused remain more pressing matters. Nevertheless, as all of these existing and new issues pile up, the initiative to alleviate poverty in Turkey has currently slowed down.

The Long-term Causes of Poverty in Turkey

  • Education: The proportion of poor people with limited or no education at all is significant. In fact, a study from 2007 indicated that 26.9 percent were illiterate, 22.6 percent had basic reading and writing skills and 42.4 percent were primary school graduates. These facts might suggest that a lack of education contributes to poverty due to the inability to work at higher-paying jobs. In order to encourage education, Turkey circulated free textbooks and transportation. Additionally, the FAITH project, which the Turkish government implemented, made education compulsory for all citizens for the initial 12 years. Along with the increase in the number of universities from 93 to 107 by 2013, the total gross enrollment increased to 81.6 percent. While the Turkish education system is still not able to compete with the European Union’s standards, it is definitely becoming more efficient.
  • Household Make-up: The mean household size tends to increase in poorer households, as nearly six out of 10 households have more than four members. Meanwhile, 45.6 percent of the poorest women in Turkey are housewives. As the number of people in households increases, the burden often falls to men to fulfill the basic needs of the entire family.
  • External Immigration and Refugees: Around 4.1 million immigrants from Iran, Iraq, Bosnia and Syria have strained Turkey’s resources. Legal immigrants receive access to education, health care and social security under Turkish legislation, namely the Law on Foreigners and International Protection and Temporary Protection Regulation. Furthermore, the demand for housing has driven up its price, pushing more and more people into poverty. Turkey has pledged nearly $35 billion to manage the flow of immigrants, which is inadequate because of the number of illegal immigrants also occupying Turkish territory. The rise in population, due to how drastic it is, has left more people confined to the poverty trap prevalent in the nation.

Turkey’s Measures to Reduce Poverty

The severity of poverty in Turkey has instigated the introduction and implementation of various policies such as the following:

  • The Country Partnership Framework (CPF): CPF is an agreement between Turkey and the World Bank with hopes of achieving growth, inclusion and sustainability under the 11th National Development Program. The General Assembly of Parliament of Turkey has implemented this as part of the 10th Development Plan.
  • The World Bank Group (WBG): The World Bank is partnering with the Facility for Refugees in Turkey (FRiT) to help reduce economic disruption due to the influx of refugees in Turkey by implementing programs with regards to education, employment and social support. For example, FriT, along with UNHCR, has pledged € 23.929.195 to allow access to protection and services for refugees and asylum seekers in Turkey.

Trust Funds in Addition to FRiT

  • The Clean Technology Fund (CTF): CTF  has granted $390 million to support wind power and encourage the private sector to invest in renewable and efficient energy.
  • E.U. Instrument for Pre-Accession Assistance (IPA): IPA funds are providing € 3533 million to Turkey. The most important goal of IPA is to improve public administration and financial governance.
  • Global Environmental Facility (GEF): GEF funds are financing $387,138,238 to focus on climate change and the maintaintence of biodiversity.

How COVID-19 Could Affect Turkey’s Ability to Address Poverty

The unexpected spread of COVID-19 has recently strained the world economy, including Turkey’s ability to implement and administer the necessary schemes to alleviate poverty. In fact, the bilateral trade between China and Turkey is as low as 1.1  percent. Coupled with the loss of tax collection from affected industries (including textiles and garments) and restricted travel abroad, this has led to an increase in national debt and left the private sector enduring heavy losses. Therefore, the government’s ability to address poverty has diminished.

Mridula Divakar
Photo: Flickr