Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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The Poverty Rate in Mexico Has Declined

The Poverty Rate in MexicoA study by Conveal showed a decline in the poverty rate in Mexico over the past four years. The reduction meant that in Mexico more than 5 million fewer people reported incomes below the market rate for needs like clothes and food.

The Past Few Years

Andrés Manuel López Obrador has been the president of Mexico since 2018 and has doubled the country’s minimum wage. In 2018, the minimum wage was equal to about $4.50 per day. It has since increased to $12 per day.

However, the amount of money sent back to Mexico by Mexicans working overseas, also known as remittances, has nearly doubled during the same time frame. In 2018, remittances amounted to approximately $33.5 billion; as of the first half of 2023, they are projected to reach an annual rate of around $60 billion.

Not All Good News

Extreme poverty, defined as not having enough money to buy adequate food, increased from 7% of the population in 2018 to 7.1% in 2022, according to the agency. The number of individuals living in extreme poverty increased from 8.7 million in 2018 to 9.1 million in 2022 due to population growth.

Additionally, López Obrador established youth apprenticeship and scholarship programs and supplemental pension payments for seniors. It is unclear, however, if these programs have specifically benefited the poorest Mexicans because they are not means-tested; instead, they are offered to everyone who qualifies, regardless of income level.

There was also a remarkable rise in the proportion of persons reporting financial difficulties related to medical treatment. The percentage increased from 16.2% of the population in 2018 to 39.1% in 2022. In a previous assessment of the rise in that number in 2020, the agency cited the sweeping reforms made to the health care system under López Obrador and the consequences of the coronavirus outbreak.

Casa Hogar de Cabo San Lucas

Founded in 2008, Casa Hogar de Cabo San Lucas is a Mexican enrolled nonprofit, charitable organization. It could be a Social Help Center. Casa Hogar may be a comfortable, secure and upbeat home for kids and teenagers set in an alluring, camp-like environment giving physical and enthusiastic care.

In addition to caring for the inhabitants, the organization gets them ready for selection or to be rejoined with their families. With a fluctuating populace of around 30 inhabitants, between 5 and 17 years old, the children and teenagers who make up this expansive family arrive beneath the security of Civil or State level Child Security Offices. Most have living guardians, but for reasons beyond their control, inhabitants cannot live with their guardians.

One of its projects, called “Blue Miracle,” is a movie featured on Netflix based on a Casa Hogar story from 2014. Blue Miracle has spread awareness and sensitivity to private social assistance centers in Mexico, which operate as charities without government funding.

This organization wants to help as many children as possible in Mexico by interacting with the problem to expand assistance to every vulnerable child. Its continuous efforts should only reduce the poverty rate in Mexico.

– Hailey Spencer
Photo: Unsplash

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How Fashionomics Africa Is Driving Development

Fashionomics AfricaFashionomics Africa is a platform enabling African creators and designers to connect with consumers, allowing them to sell their goods to a broader consumer base and receive investment and funding. The initiative can potentially become a major driver in economic development and industrialization in Africa by generating new jobs and creating global supply chains.

Fashionomics Africa aims to develop the African textile industry through several methods. For instance, it has attempted to increase access to finance by connecting TA&A (African Textile, Apparel and Accessories) entrepreneurs with commercial banks, thus facilitating investment and allowing further funding to reach entrepreneurs, enabling them to expand their business activities. Other contributions have included helping TA&A entrepreneurs access markets through e-commerce and creating jobs for both skilled and unskilled labor. Its ultimate goal is to increase access to markets and finance and develop workers’ skills through mentoring and other networking opportunities.

Job Creation

Fashionomics Africa is currently under the leadership of the Gender, Women and Civil Society (AHGC). AHGC aims to target gender-based disparities and women’s empowerment. Fashionomics Africa’s mission will contribute to improving human capital, specifically that of women and children, through its efforts to make jobs and training more easily accessible.

Allowing women and children to have increased access to wages encourages the empowerment of these groups, providing them with higher disposable incomes. This increased access allows them to alleviate themselves from poverty, increase their living standards and become established members of any household, potentially protecting them from power imbalances in which they would be otherwise trapped due to a lack of financial freedom. This change supports poverty reduction in groups where the issue is especially prevalent, allowing women and children to afford an improved standard of living for themselves.

Sustainability

As well as promoting job creation and sustainable development, Fashionomics Africa contributes to many fair trade organizations, including promoting sustainability through discouraging fast fashion. Their repurposing and recycling of garments is a net positive towards reducing emissions, which have detrimental impacts on changing weather patterns. While fast fashion does not directly contribute to poverty levels, warmer climates have severe implications for underdeveloped nations, often causing droughts and famine, further exacerbating the levels of absolute poverty already present.

Poverty Reduction

While the mission of Fashionomics Africa is not directly a poverty reduction one, there will be many by-products of the organization that contribute to poverty reduction. Job creation and climate change counteraction will significantly alleviate poverty and allow many to live above the threshold of $2.15 a day. On a wider scale, this initiative is likely to drive development and industrialization throughout Africa, strengthening supply chains and alleviating African economies. This improvement will allow many to overcome poverty as domestic economies begin to thrive, enabling more state provision and welfare for those trapped in poverty.

– Hannah Bugeja
Photo: Flickr

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How the World Bank Leverages AI To Help Low-Income Families

World Bank Leverages AI
Technology has been a lifesaver in developing countries during COVID-19, helping to maintain essential services and keep companies in business as the world went completely online. It has also offered a glimpse of a brighter future, one in which income gains and employment are driven by technologies such as artificial intelligence (AI).

The economic challenges brought on by COVID-19 and more recently, the war in Ukraine, have resulted in a marked slowdown across the globe. It is estimated that almost 7% of the world’s population will still be living on less than $2.15 a day in 2030, with most in Africa. The need to embrace innovative technologies such as AI could not have arrived at a better time.

Artificial intelligence combines large volumes of data with computing power to simulate human cognitive abilities such as reasoning, language, perception, vision and spatial processing.

The World Bank finances public projects and programs, providing technical advice and analysis, managing financial risk,and financing private sector investments to help countries share and apply innovative knowledge and solutions to the challenges they face. The World Bank leverages AI through multiple avenues, empowering private sectors and governments, to uplift the lives of people in developing nations.

Reducing Poverty and Boosting Shared Prosperity in FinTech

The World Bank leverages AI to address the financial needs of the unserved and the underserved, by empowering companies generating products and services such as credit scoring and targeted advertisements. Companies in Africa such as M-Shwari and M-Kajy are early examples of AI delivering financial services to the poorest.

Predicting and Fighting Poverty with Data

With more than 3.5 billion mobile subscribers in developing countries and thousands of satellites in Earth’s orbit, collecting data to predict poverty and vulnerability is within the reach of scientists, researchers and policymakers. The socio-economic status of an individual can be inferred using past history of mobile phone usage. In resource-constrained environments where censuses and household surveys are rare, this approach creates an option for gathering localized and timely information cost-effectively, with machine learning (ML) opening the possibility of using new data sources to measure poverty and vulnerability.

AI in Agriculture

AI-as-a-service solutions have been gaining popularity in recent years. A machine learning app, Nuru, has been used on farms in Kenya, Mozambique and Tanzania to identify leaf damage in photos and send information to help monitor the presence of an invasive pest that threatens farm revenue and food security across East Africa.

AI in the Energy Sector

In Africa, 600 million people (53% of the total population) live without electricity, with conditions exacerbated in the sub-Saharan region. However, the continent has abundant solar, wind and bioenergy resources. Azuri Technologies has developed a solar-powered, innovative, pay-as-you-go model for 12 countries across Africa. The service utilizes AI to optimize power consumption — it learns home energy needs and adjusts power output accordingly by automatically dimming lights, slowing fans or managing how quickly devices are charged.

Barriers to Economic Growth

The lack of AI expertise and insufficient data often increase the cost of implementing AI solutions in low-income countries. The International Finance Corporation (IFC), a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector in developing countries.

Through venture capital investments and investments in online educational platforms, local communities are empowered to take advantage of this technology to improve skills and gain access to AI-related solutions. However, private sectors cannot operate alone in emerging markets. Government support in establishing data and infrastructure, open access and regulatory governance to protect privacy and security are needed to aid the private sector specializing in AI solutions.

The World Bank Leverages AI Through Policy Mandates, Global Research and Training

Measuring AI Development is aided by Development Economics Analytics & Tools (DECAT), a prime research arm at the World Bank. The role of DECAT is to promote a global understanding of development policies and programs through analytical insights and recommendations.

The Center for Effective Global Action (CEGA) at UC Berkeley and DECAT partner and hold annual conferences on key topics, including the role of mobile data in global development research, emerging data and methods in global health research as data, infrastructure and governance hold the keys to enabling poor countries to embrace AI for economic growth in the coming years.

The World Bank has launched the AI for Development initiative and an Artificial Intelligence Lab. Through skills-building workshops and training programs on big data, AI and decision science, these programs work to enhance the skill sets of decision-makers with tools that rely on these technologies.

The UN’s AI for Good Global Summit 2023, a conglomeration of subject matter experts from tech giants, international universities and organizations, calls for innovative ways to make AI useful in addressing global issues.

Artificial Intelligence is Here to Stay

While the gaps in governance, data and infrastructure are key factors that need to be addressed on the global stage, the World Bank leverages AI in innovative ways to demonstrate the good the technology could bring to low-income communities.

– Sudha Krishnaswami
Photo: Flickr

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The Economic Potential of the IWOSS Sector in Nigeria

IWOSS sector in Nigeria
High levels of joblessness have emerged as a critical policy issue in Nigeria. From 2010 to 2018, the unemployment rate surged from 5% to 23%. Compounded by the impact of the COVID-19 pandemic, the economy is failing to create an adequate number of employment opportunities, especially for women and young people. As the shortcomings of traditional sectors like manufacturing in driving economic growth and employment have become apparent, attention has pivoted toward investigating alternative sectors that can stimulate both economic development and job opportunities.

Industries Without Smokestacks and Their Impact

Industries without smokestacks (IWOSS) encompass industries with superior labor productivity compared to traditional agriculture. These sectors encompass agro-processing, financial and corporate services, information and communication technology (ICT), tourism, formal trade and transportation.

The growing significance of the IWOSS sector in Nigeria is particularly important, given that data suggests the employment crisis has escalated into a significant issue. For instance, the financial and business services sector led to an increase in employment rates, accounting for 23.5% of the growth share between 2010 and 2018. In contrast, sectors like mining demonstrated minimal improvement, registering a mere 0.1% increase, underscoring the transition from traditional sectors to newer, service-oriented ones.

IWOSS sectors provide diverse job opportunities that cater to individuals with a range of skills and expertise levels. This opportunity means that people with lower levels of education or skills can still find employment in these sectors, helping reduce unemployment and alleviate poverty.

Job Opportunities for Women and Youth

A notable feature of the IWOSS sector in Nigeria is their propensity to hire women, young individuals and those with low education and skills. These sectors have consistently attracted a greater proportion of workers from these specific demographics in comparison to sectors outside the IWOSS realm. In 2018, for example, 34% of the IWOSS sector in Nigeria consisted of females, while the non-IWOSS workforce exhibited a lower representation of women at 32%. Predictions indicate that the IWOSS sectors will experience a continued rise in female employment by 2025. These figures demonstrate the advancement of gender equality in the labor force. This sector offers favorable prospects for women to overcome the obstacles that have historically hindered their participation and progress in conventional industries.

Advantages of IWOSS

An important benefit of IWOSS is its adaptability, which allows women to manage both their professional and family obligations effectively. Introducing remote work choices, freelance positions and flexible scheduling has transformed the job market, especially for women.

Given that IWOSS sectors in Nigeria prioritize skills over physical strength, they offer an equitable platform for women to excel and prosper. By offering flexible work arrangements and prioritizing skills over physical strength, IWOSS sectors create a more inclusive environment for women to participate in the workforce. Empowering women with employment opportunities can lead to economic independence and, in turn, reduce poverty among female-headed households.

Just like the manufacturing sector, these industries share the characteristic of being export-oriented, meaning they engage in trade and benefit from global markets. Additionally, they harness the advantages of technological innovations, leveraging cutting-edge tools and processes to enhance productivity and competitiveness.

Furthermore, their substantial reliance on a workforce encompassing individuals with lower to intermediate skills and expertise sets them apart. This reliance means that these sectors offer employment opportunities for a wide spectrum of workers, ranging from those with basic skills to those with more specialized training, making them accessible to a broader segment of the population.

The IWOSS sector in Nigeria is swiftly gaining prominence and playing a progressively larger role in employment. IWOSS can create many job prospects for Nigerians, particularly for the younger generation. The adaptability, inclusiveness and resilience that IWOSS has exhibited over the last two decades, even amid the challenges that the COVID-19 pandemic posed, underscore its capacity to foster job growth.

– Susanna Andryan
Photo: Unsplash

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Slovakia: The World’s Highest Rate of Income Equality

Income Equality
In today’s stark reality, the richest 10% of individuals hold more than half of global income, while the poorest half of the world’s total population shares 8.5% of it; a disparity that has doubled over the last 20 years. However, Slovakia is one of the few success stories of inclusive growth, maintaining the third-lowest risk of poverty in the EU in addition to achieving the world’s highest rate of income equality.

Defying Poverty and Disparity

Europe constitutes no exception from the global trajectory of wealth distribution. Among the EU’s most equitable nations, Denmark and Sweden have witnessed income inequality increase by approximately 14% since 2006. In contrast, Slovakia experienced a reduction of the same amount during this period. While income levels in Slovakia remain relatively low, they are nevertheless the most evenly distributed.

In fact, the Slovak Republic attained a Gini coefficient of 23.2 in 2023 — a statistical measure quantifying income inequality and economic concentration — which constitutes the lowest figure achieved by any nation today. Meanwhile, Slovakia is also recognized as having the world’s fourth-best Palma ratio, a gauge of wealth disparity between the top 10% and bottom 40% of the population.

Additionally, Europe’s income growth has generally remained stagnant over the past quarter-century, while Slovakia exhibits one of the most rapid income growth rates among OECD states. A 2019 OECD report found that in 2022, 21.6% of EU citizens were at risk of poverty or social exclusion, while the individual figure for Slovakia averaged around 12%. Finally, as poverty can be understood as an extreme expression of inequality, Slovakia’s progress towards equality attained commendable triumphs on the UN Sustainable Development Goal (SDG) 1, which is towards the eradication of poverty.

A Closer Look at Slovak Policies

Since the split of Czechoslovakia into Slovakia and the Czech Republic, the two republics have introduced a number of social policies along with the phased introduction of market-based democracy. Slovak efforts encompassed state-directed reforms aimed at improving the national level of education, labor force participation and occupational class structure in addition to a number of social safety nets. Notably, since the 1990s, Slovakia saw a significant increase in the share of university graduates, as well as an expansion of routine non-manual jobs that currently employ one-fourth of the Slovak population.

Slovakia exhibits a unique tax mix with extensive pre- and post-income distributive functions. Much of Slovakia’s tax revenue stems from the social security contribution tax, which accounts for 13.3% of Slovak GDP, while corporate income tax constitutes the state’s second-largest source of tax revenue. Slovakia’s progressive tax is attributed to a 42% reduction in the inequality rate within the country, where a 17% to 20% tax rate is enforced on the highest earners, while a 0% to 5% is taxed from the lowest incomes. On a national level, this results in the top 10% of earners in the workforce accounting for 30% of all social contributions, while the collective taxed amount from the lowest-earning half of the population contributes a quarter of the total funds. In fact, the majority of retirees’ income, about 80-90%, is derived from progressive tax, deeming it primarily funded by those with the highest incomes.

From the earliest days of independence, pension schemes introduced in Slovakia aimed to better employment rates without having to suppress wages. To reduce labor supply, Slovakia increased personal income tax for workers above retirement age along with marked increases in pension benefits. Despite earnings in OECD states averaging more than three times those in Slovakia, public spending on pensions comprises 7% of Slovakia’s GDP. In fact, 2013 studies on OECD and G20 countries revealed that poverty rates for the elderly were among the lowest in Slovakia, averaging 4.3% in 2010, while the overall OECD average stood at 12.8%.

Another notable dimension of Slovak welfare schemes includes parental leave. Early reforms in the Slovak Republic established a three-year paternal allowance, that continues to rank Slovakian parental leave policies amongst the top 10 in the world, with Slovakia being the first on the list with equal days of fully paid leave for male and female parents.

How Social Welfare Has Improved Income Equality in Slovakia

Furthermore, Slovakia’s dynamic of proactively seeking social welfare has demonstrated a remarkable capacity to endure in the face of international economic shocks. According to the projections of the European Commission, Slovakia was among the EU economies tackling the 2008 global economic crisis most effectively. Slovakia was quick to establish the Institute for Subsistence Law, which defined vulnerable portions of the populace based on fixed amounts of minimum monthly incomes below which they would become entitled to social assistance benefits. Consequently, between 2008 and 2015, the risk of poverty in Slovakia dropped by 2.5%, with an 8% decrease in the overall poverty level within the 10 years leading up to 2015.

Moreover, studies by the Slovak Institute for Financial Policy found that intergenerational elasticity in Slovakia — the extent to which an individual’s income is determined by their parents’ economic status — was at 18.4%, a figure significantly lower than that of any Western European nation. Therefore, Slovakia also stands out in the fact that parents’ income levels serve as a poor indicator of their offspring’s earning prospects, indicating a limited effect on a child’s opportunities.

In the words of the Center for Eastern Studies’ Tomasz Dąborowski, the Slovak experience is “a model of successful economic transformation,” demonstrating that a focus on economic justice and social welfare can yield transformative results amidst the current landscape of challenges to income equality.

– Nadia Asaad 
Photo: Flickr

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Burning African Trash — Generating Electricity To Fight Poverty

Burning African TrashIn Africa, where many communities struggle with poverty and have little access to essential amenities, landfills are providing an unconventional answer to this widespread issue. These landfills, which are typically seen as environmental eyesores and health risks, have unrealized potential that may drastically improve the lives of the continent’s poorest citizens.

This article analyzes the groundbreaking possibility of burning African trash to generate electricity and how this practice can help alleviate global poverty.

Landfills

Africa’s landfills represent the difficulties experienced by emerging countries. They frequently overflow with trash, causing environmental degradation, risks to public health and an overall sense of neglect.

Close proximity to landfills in poor neighborhoods causes health issues. This is caused by a lack of hygiene, direct contact with toxic substances and the presence of pests. Families are forced to spend more of their already strained resources on health care, which reduces the amount that otherwise would be allocated to economic growth or education.

Landfills also discourage prospective investors, limit tourism and restrict the expansion of local small companies. The negative perception of these areas as “icky” feeds a vicious cycle of poverty.

Energy Poverty

Another problem is that many Africans suffer from energy poverty, a lack of reliable access to energy sources for absolute necessities. These can include lighting, heating, cooking and running necessary appliances. Addressing energy poverty is essential for fighting against global poverty.

New Possibilities in Energy Production

Landfills and energy poverty are two significant nuisances to Africa’s progress. However, a new technology may promise the continent a solution to both of these poverty-related issues. Africa may be able to supply many of its electricity demands by burning landfill garbage with controlled, environmentally friendly methods.

Burning landfill waste results in an enormous decrease in the volume of solid waste, making landfills easier to manage and improving the general sanitation and hygiene in the area while also lowering the danger of infectious diseases. Keeping landfills clean and well-maintained makes the local environment healthier. Although one may think too much particulate matter (PM) is released from this burning, the EPA argues that more than 99% of PM can be removed through filters.

Developing landfill-to-energy projects offers residents of underdeveloped areas employment opportunities. These programs, ranging from waste collection and sorting to operating energy-producing machinery, can give people and families who are dealing with poverty a source of income.

Landfills in Africa have the potential to represent hope for underprivileged populations. Africa may produce up to 20% of its own electricity by unlocking the energy trapped in these trash piles. In addition to addressing energy poverty, burning African trash also provides more hygienic conditions, employment prospects and environmental advantages. Africa can turn trash into treasure and make a huge step toward a brighter, more sustainable future for all of its citizens with the correct investments, policies and community involvement. The continent can fight poverty by turning its waste into valuable energy sources.

– Advait K. Mishra
Photo: Flickr

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Poverty and Mental Health in Nicaragua

Mental Health in NicaraguaNicaragua ranks among the countries in Latin America with low-income levels. Its population of 6.5 million faces challenges, with approximately 3.2% living on less than $1.90 per day and around 24.5% below the national poverty line. Widespread poverty in Nicaragua exacerbates mental health issues.

Living in poor conditions creates a challenging and unpredictable environment for families and communities in the area. It is widely known that poverty and socioeconomic disadvantages increase the chances of experiencing life events. In countries with development like Nicaragua, factors such as limited social connections, inadequate public services and insufficient public security contribute to these stress-inducing situations within these communities. Due to a struggling economy, access to health services is scarce for individuals, particularly the poorest. Consequently, they live in unsupportive environments, making it difficult for them to cultivate resilience or develop self-esteem.

The Impact of Poverty on Mental Health

Research indicates that individuals enduring poverty and social hardships often encounter a frequency and greater severity of life events (SLEs) compared to the general population from childhood and adolescence to adulthood. These SLEs have been linked to a range of mental health issues, ultimately diminishing the quality of life for those affected. In interviews conducted in León and Chinandega (Nicaragua), homeless women shared how their financial circumstances were influenced by the SLEs they experienced before reaching 18 years old and their age while experiencing them.

When asked about the life events that had an impact on their experience of homelessness, the women mentioned other factors. These included:

  • Having difficulties with their family.
  • Experiencing the loss of their mother and/or father.
  • Facing unemployment.
  • Enduring intimate partner violence.
  • Struggling with poverty and economic challenges.

Moreover, some interviewed women believed that certain significant life events contributed significantly to their situation. These events included:

  • The death of a partner.
  • Separation or abandonment by a partner.
  • Being abandoned by their children.
  • Substance abuse issues.
  • Lack of education opportunities.
  • Dealing with illness or health problems.

Additionally, one woman in each case indicated that becoming homeless was due to an accident, debt, or mismanagement of assets, time spent in prison, being a victim of rape, engaging in sex work, experiencing the death of a child, lacking family support, struggling with self-esteem issues or having experienced violence.

Health Care and Support Initiatives in Nicaragua

Médecins sans Frontier (MSF, Doctors Without Borders) is an initiative that offers medical assistance. Each day, the dedicated teams of Doctors Without Borders provide health care to individuals facing crises undertaking endeavors across over 70 nations. Since its establishment in 1971, MSF has positively impacted millions of lives, expanding from a group of 13 doctors and journalists to a movement comprising more than 45,000 individuals.

In Nicaragua, they provide psychological and psychiatric assistance to individuals affected by political and social violence. MSF’s initial mission in 1972 took place in Managua, the capital and largest city of Nicaragua. During that time, an earthquake devastated most of the city, claiming the lives of 10,000 to 30,000 people. In 2018, MSF returned to Nicaragua to support those experiencing anxiety, adjustment disorder and post-traumatic stress due to their exposure or personal experiences with events linked to civil unrest and political turmoil. Additionally, MSF conducted training sessions on health care, psychological first aid and self-help for community leaders, groups and educators. This training empowered them to provide support during crises.

Conclusion

Nicaragua’s intersection of poverty and mental health poses difficulties for individuals and communities. The combination of resources and inadequate access to necessary services and support worsens mental health problems. Organizations such as Doctors Without Borders play a part in offering psychiatric aid along with training to tackle these challenges. They assist individuals affected by social violence find ways to recover and build resilience amid adversity.

– Aysu Usubova
Photo: Flickr

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Achieving the SDGs in Guinea Bissau

SDGs in Guinea BissauGuinea Bissau is a country located on the west coast of the African continent. Despite having a rich culture and strong natural resources, it is one of the most impoverished nations in the world, the World Bank says. Guinea Bissau had a GDP of just $1.63 billion in 2022 and, in 2018, almost 22% of the population lived in extreme poverty, surviving on less than $2.15 per day. Progress toward the U.N. Sustainable Development Goals (SDGs) is essential for global poverty reduction. And likewise, achieving the SDGs in Guinea Bissau is essential for the country’s overall growth, development and poverty reduction progress.

According to the Sustainable Development Report on Guinea Bissau, major challenges remain in 13 out of 17 SDGs. Also, significant challenges remain in SDG 10 (Reducing Inequalities) but the country has achieved SDG 13 (Climate Action). For the remaining two SDGs, there is no data to assess.

UN Investment and Aid

In April 2022, the U.N. and the government of Guinea Bissau met to discuss the government’s implementation of the Cooperation Framework strategy, which runs from 2022 until 2026 and aligns with the country’s National Development Plan and the U.N. 2030 Agenda for Sustainable Development. The framework focuses on three outcomes: “Governance, economic transformation and human development.” Poverty reduction and wealth inequality fall into the first two focuses. The overall aim of this plan is for the U.N. to assist Guinea Bissau in meeting the 17 SDGs.

In the year 2022, the U.N. committed almost $87 million to help Guinea Bissau move closer to reaching the SDGs.  In 2023, so far, the U.N. has provided $75.3 million, mostly used in the areas of health and well-being (49.3% of the total value), peace, justice and effective institutions (11.6% of the total) and zero hunger and sustainable agriculture (17.1% of the total).

UNDP Aids Development in Guinea Bissau

Among Guinea Bissau’s development cooperation partners and organizations, UNDP is the main partner, and it already has an office in the country and projects aimed at specific local needs since the country’s independence in 1975.

The UNDP acts in the country and, consequently, for international development, supporting good governance in order to achieve equality and opportunity for all. The UNDP focuses on good governance to ignite progress in the development of other key areas. These other areas are democratic governance, efforts toward national social cohesion and peace, gender equality, poverty reduction, environmental sustainability and health.

With regard to methodologies and work strategies for development, the UNDP identifies and states that current development challenges are interconnected and interdependent. This means that an integrated approach is necessary rather than isolated efforts in order to bring about lasting change in development and poverty reduction in Guinea Bissau.

UNDP Projects in Guinea Bissau

To help Guinea Bissau move closer to achieving the SDGs, the UNDP has implemented several projects:

  • Building Forward Better in Guinea Bissau: This project began in January 2022 and will end in December 2024 with the aim of advancing progress on the SDGs overall.
  • Political stabilization and reform: Building trust and inclusive dialogue within the national political regime in order to make it more democratic and in line with U.N. principles.
  • Blue economy as a catalyst for green recovery: The project focused on leveraging the country’s blue economy through open and interactive dialogue involving the private sector and civil society, thus obtaining investment from multiple parties. The project began in January 2021 and ended in December 2022.
  • Stabilization of the justice sector: A proposal that seeks to achieve political stability, considering that the main cause of the difficulty of development is due to the existing political crises in the country, in order to support the justice sector in accordance with the principles of the system international human rights, resulting in the consolidation of internal peace.

Overall, the efforts of the U.N. and its agencies prove vital in helping Guinea Bissau meet the 17 SDGs with just seven years remaining.

– Letícia Lacerda
Photo: Unsplash

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How Collaborative Efforts Can Address Global Poverty

Collaborative EffortsGlobal poverty remains one of the most pressing challenges humanity is facing. Despite significant advancements in technology, economics and social systems, a considerable portion of the world’s population still lives in extreme poverty. Addressing this complex issue requires a multifaceted approach that goes beyond traditional methods. One promising approach is the power of collaborative efforts. By bringing together governments, NGOs, businesses and individuals, there is a good chance of working out a comprehensive fabric of solutions to resolve global poverty.

The Interwoven Nature of Global Poverty

Global poverty is a multi-dimensional challenge that transcends geographical and cultural boundaries. It encompasses economic hardship and social, political and environmental factors. The intricate interplay of these elements calls for a coordinated response and collaborative efforts that can address the root causes rather than just the symptoms.

The Role of Collaborative Efforts

Collaboration offers a unique advantage in tackling global poverty. It leverages the diverse strengths of different stakeholders and encourages holistic solutions. Governments can provide policy frameworks, resources and infrastructure. Non-governmental organizations (NGOs) can bring grassroots knowledge, community engagement and targeted interventions. Businesses can contribute by investing in sustainable development, job creation and responsible practices. Lastly, individuals can also play a vital role through activism, philanthropy and consumer choices.

Case Studies in Collaborative Success

The United Nations Sustainable Development Goals (SDGs): A prime example of global collaboration, the SDGs outline 17 goals aimed at addressing various aspects of poverty, including education, health, gender equality and clean water. Governments, NGOs, businesses and individuals worldwide are working collectively to achieve these goals by 2030.

  • Microfinance and Social Enterprises – Collaborative efforts between financial institutions, NGOs and local communities have led to the development of microfinance initiatives and social enterprises. These empower individuals in poverty by providing access to credit, training and resources to start small businesses and improve their livelihoods.
  • Public-Private Partnerships – Collaborations between governments and businesses have been successful in developing essential infrastructure in underserved regions. This includes initiatives for clean energy, health care and education, which directly impact poverty reduction.
  • Challenges and Considerations – Collaborative efforts are not without challenges. Differences in priorities, communication barriers and unequal power dynamics can hinder progress. It is crucial to establish transparent communication channels, clear objectives and equitable distribution of resources to ensure that collaborative initiatives yield meaningful results.

Looking Ahead

Global poverty is a serious challenge, but it is not insurmountable. Collaborative efforts hold the potential to work out the required solutions. By harnessing the collective strength of governments, NGOs, businesses and individuals, there is hope for mending the gaps in the social fabric, uplifting disadvantaged communities and creating a world where every individual has the opportunity to thrive.

– Sudipta Barua Munmun
Photo: Pexels

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The Benefits of Impact Investing in Education for Poverty Alleviation

Investing in EducationImpact investing is an investment strategy employed by individuals, companies or organizations seeking both financial returns and a positive social or environmental impact. This approach, when applied to education, could yield substantial benefits for individuals and developing countries alike. Education has the potential to enhance various facets of an economy, including health, empowerment and employment, as highlighted by EHL Insights. For instance, research suggests that achieving universal education, where every child acquires basic literacy skills, could reduce the number of individuals living in poverty by an estimated 170 million.

Reducing the Funding Gap

The private sector can significantly assist governments in developing countries in closing the funding gap and providing access to quality education for all children in these nations. This support is crucial as many developing countries face challenges in securing the financial resources required for universal basic education of high quality.

According to LEK Consulting, developing countries will need an expenditure of $3 trillion on education to provide “universal access to education” by 2030, which aligns with the sustainable development goals (SDG). This is more than double the 2020 expenditure of $1.2 trillion. The benefits of impact investing in education from the private sector can potentially fill in the gaps where government funding is absent or limited – improving issues of low access to education and low learning outcomes, both of which have implications for poverty alleviation in developing countries.

Impact Investing Improves Access to Education

Hewlett-Packard (HP) launched HP School Cloud, an open learning platform, in 2018 to help improve access to education via a $20 million investment. HP school clouds allow access to educational materials such as e-textbooks and thousands of lessons in STEM subjects like science and math without the need for the internet, allowing equitable access to education worldwide, particularly helping the most marginalized in society. The resources are aligned with an international curriculum standard set by UNESCO and OECD to name a few, with the aim of improving education for 100 million people by 2025. HP School Cloud is an important tool for accessing education. Ron Coughlin, President of Personal Systems Business at HP, states, “HP School Cloud ensures today’s aspiring students develop the skills for the jobs of tomorrow.”

Education is still the primary way for people to escape cyclical poverty in developing countries. Therefore, impact investing can help to improve access to education and help promote a better future by increasing employment status, generational wealth and income and wealth creation. The World Bank states that globally for every year of schooling, there is a “9% increase in hourly earnings.” This increase in earnings in turn contributes to the economic growth of a country. No country with adult literacy rates below 40% achieves rapid growth, demonstrating the importance of access to education for poverty alleviation.

Impact Investing Improves Learning Outcomes

The Union Bank of Switzerland (UBS) Optimus Foundation created the first Development Impact Bond (DIB) in education, Educate Girls DIB, in 2015 to increase the enrolment of marginalized girls and progress and improve literacy and numeracy among children who attended school, in the Indian State of Rajasthan. The DIB lasted three years until 2018. At the end of the program, the learning outcomes of enrollees “grew 79% more than their peers in other schools,” according to the Educate Girls Foundation. That is equivalent to an additional year of education.

Children need foundational knowledge that they learn in school to help them develop as individuals and thrive when they join the workforce. Improving low learning outcomes, particularly for women, can help build prosperous and healthy families. The benefits of impact investing in education in developing countries are likely to reduce children’s malnutrition by 50%, reduce the chances of children dying before the age of 5 and reduce their chances of turning to prostitution as a source of income, consequently reducing levels of HIV infection within a country.

Impact investing in education can help reduce poverty within developing countries by providing large amounts of funding in places where government resources are spread thin. Education is important for reducing poverty. Education increases economic growth and individual earnings, which benefit families and wider society. Furthermore, investing in education, particularly for women, leads to better health outcomes creating a healthier society.

– Kishan Patel
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