Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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Progress in Addressing Poverty in Myanmar

After a military takeover on February 1, 2021, Myanmar was thrown into a position that undid years of reforms and growth throughout the nation. The military in Myanmar overtook the democratically-elected governing body after its political party did poorly in an election held months earlier. The takeover exacerbated poverty and sparked a humanitarian crisis in Myanmar in 2022, with 40% of the country’s population living below the national poverty line. The conflicts are also expected to leave 2.7 million people in Myanmar displaced by the end of 2023.

In order to improve the struggling economy and humanitarian crisis, many global organizations and international partners have developed plans and initiatives to provide support for addressing poverty in Myanmar.

Difficulties in providing aid

In May 2023, Myanmar was hit by the powerful storm Cyclone Mocha, exacerbating the plight of the country’s most vulnerable populations. Unfortunately, restrictions imposed by the military have hindered the delivery of support to these affected groups. By June 2023, the U.N. had already sounded the alarm, suggesting that the military’s actions might be in violation of international human rights and humanitarian laws, as they seem to intentionally obstruct aid efforts.

As the country remains mired in conflict and devastation, recent estimates from the U.N. reveal that the military has been responsible for the destruction of around 60,000 civilian structures since the onset of the military takeover. Adding to the tragedy, the military’s actions have resulted in the deaths of at least 3,452 people and the imprisonment of over 20,000 individuals between the start of the takeover and April 2023.

Disturbingly, the U.N. issues a stern warning that if the impediments to humanitarian aid persist—blocking essentials like food, water and shelter—it could give rise to further war crimes, including instances of starvation and collective punishment.

The United Nations Refugee Agency (UNHCR)

Despite the challenges, the United Nations Refugee Agency increased its presence throughout Myanmar in 2022. During the year, the UNHCR helped 325,200 internally displaced persons (IDPs) to return back to their place of origin in the Rakhine region of the country.

Additionally, the UNHCR provided in-kind support to 500,000 IDPs, shelter support to 100,000 and cash assistance to 51,500. The organization worked to bring this much-needed assistance with the help of partnerships with NGOs, civil societies and faith-based organizations.

The UNHCR also collaborated with other nearby nations such as Indonesia, to provide a safe place for refugees leaving Myanmar to find aid. In 2022, Indonesia accepted more than 700 refugees into the Aceh province.

In 2022, Bangladesh collaborated extensively with the UNHCR to modify refugee education programs to suit refugees from Myanmar. These educational initiatives have benefited more than 40,000 children who relocated to Bangladesh following the military takeover in Myanmar. Given that education is a well-established route out of poverty, ensuring the continuity of education for displaced individuals becomes paramount.

In 2023, UNHCR continued to work closely alongside Bangladesh to continue supporting more than 900,000 Myanmar refugees living in the country. UNHCR will provide production kits to support livelihood creation and skills building for 72,000 households and will continue increasing Myanmar education to an additional 12,280 pre-primary children.

Looking Ahead

Myanmar’s humanitarian crisis continues to persist. Thousands in the country remain displaced and live below the poverty line. However, organizations like the UN Refugee Agency have paired with partners to continue addressing poverty in Myanmar.

– Tristan Weisenbach

Photo: Flickr

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How Renewable Energy Can Help Rural Colombian Communities 

Rural Columbian CommunitiesA geographically and economically diverse country, Colombia experiences a high poverty rate, with around 39.3% of its 50 million inhabitants living in poverty as of 2021. Although the national poverty rate has declined from the 42.5% peak that it reached at the height of the COVID-19 pandemic in 2020, the country’s progress in reducing poverty has been limited to urban areas: according to the World Bank, poverty in rural Colombia in fact increased from 42.9% to 44.6% between 2020 and 2021. Difficulty in expanding the grid to reach the country’s remote rural communities has limited their access to electricity, among other resources, and exacerbated the rural-urban divide. However, renewable energy holds the potential to improve life and livelihoods in rural Colombian communities, foster equitable economic growth and reduce the country’s poverty rate as a whole.

Colombia’s Renewable Energy Potential

Colombia already embraces renewable energy, long relying on hydroelectric power for up to 77% of its energy needs, according to the United States Agency for International Development (USAID). Yet, changing weather patterns and climate shocks like droughts have increasingly compromised the reliability of hydroelectric power. Furthermore, the maintenance of such systems has posed a challenge.

For instance, in 2011, a school in the small rural village of San Antonio installed a micro-hydroelectric power plant in hopes of ensuring access to reliable and affordable power for students and teachers. Yet, due to insufficient servicing and installation, the plant’s efficiency fell short, providing only five hours of electricity per day. This highlights the need for proper implementation and ongoing maintenance for the sustained reliability of renewable energy sources. Moreover, diversifying energy profiles in rural Colombian communities could enhance reliability and establish long-term solutions for addressing poverty.

On the bright side, Colombia holds great potential for energy diversification, with many rural Colombian communities presenting ideal conditions for wind and solar energy generation. Since these communities are off-grid, renewable energy plants and infrastructure can be tailored to their specific strengths and needs, enabling rural Colombian communities to implement locally suitable and sustainable energy production methods, as is being done on Colombia’s Providencia Island.

Impact on Education

Implementing reliable renewable energy infrastructure could significantly help improve education in rural Colombian communities. For example, even the five-hour daily supply of electricity that the San Antonio school generated with its hydropower plant was unreliable due to ongoing work on dams in the area. Power outages frequently reduced planning time for teachers and study hours for students. Additionally, the school’s health center, a vital community resource, lacked sufficient power to refrigerate vaccines and anti-venom serum, putting the many students who boarded at the school and inhabitants of this geographically-isolated community at great risk. 

Across rural Colombian communities, a lack of reliable electricity has hindered students’ learning, teachers’ teaching capabilities and schools’ ability to provide essential medical care, safe drinking water and basic sanitation services. Consequently, USAID and organizations like Tierra Grata have prioritized the implementation of reliable renewable energy resources in Colombia’s off-grid, rural regions. Already, the combined efforts from these organizations are making a significant impact on students, teachers and entire communities.

For instance, as part of a larger initiative “to develop renewable energy projects” in rural Colombian communities, USAID stepped in to help repair San Antonio’s hydropower plant, install supplementary renewable energy infrastructure and provide solar lamps for teachers’ home use. As one teacher noted, access to a solar lamp allowed him to prepare for classes at night, leading to more interactive classroom time. He also noted that, as a result of USAID’s interventions, children did not need to spend as much time gathering wood for energy, allowing them to devote more time to their studies. Overall, USAID’s interventions aim to reach more than 13,000 inhabitants across rural Colombia.  

Impact on Local Economies 

Implementing renewable energy production methods in rural Colombian communities could also contribute to poverty reduction by improving local economies. In addition to reducing energy consumption and costs, renewable energy can help create sustainable income opportunities, ensure environmental preservation, enhance efficiency and improve the quality of life in rural, off-grid communities. 

For example, a common rice-drying practice involves laying rice out in the open, and this exposes the grains to animals who might consume it before it dries completely and is ready for sale. To address this issue, USAID is working to implement solar-powered grain dryers in communities that rely upon rice for income and sustenance. The initiative will allow for more efficient grain processing, minimizing product losses and allowing local economies to grow with increased production and sales of rice. As the rural development specialist of the USAID project summarized, this approach represents “rural development from the starting point of clean energy.”

Looking to the Future

Despite the inordinate poverty that Colombia’s rural communities face, such initiatives demonstrate how reliable access to renewable energy resources can help mitigate poverty and its many effects. Across these communities, the effective implementation and maintenance of renewable energy infrastructure could reduce energy and education-related inequality, foster growth in local economies through increased productivity and alleviate the disparities caused by geographic isolation.

– Ada Rose Wagar
Photo: Flickr

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Poverty Reduction in Morocco

Poverty Reduction in MoroccoMorocco has made impressive strides in poverty reduction since the beginning of the century. Organizations such as the High Atlas Foundation are at the forefront of tackling poverty in rural areas, pushing the country closer to achieving its goals.  

High Atlas Foundation

“During my time as a Peace Corps volunteer, I gained a great overview of the potential of agriculture in Morocco, how it could multiply the incomes of rural farming families.”

In 1995, Yossef Ben-Meir envisioned a promising future for development in Morocco. In the first decade of the 21st century, 1.7 million Moroccans lifted themselves out of poverty. The poverty rate substantially dropped from 16.3% in 1998 to 8.9% in 2007. However, the impressive poverty reduction rate of more than 40% did not erase the drastic inequality between the urban and rural populations. By 2014, 40% of the population lived in rural areas, yet accounted for 79.4% of the poor and 62.1% of the vulnerable.

Ben-Meir also witnessed first-hand the lack of access to clean water and the consequent high infant mortality in rural Morocco. Moved by the dire need and the vast potential in the same region, he returned to Morocco a handful of times, taking on roles as a project builder, researcher and Peace Corps director. Eventually, he founded the High Atlas Foundation (HAF) as a nonprofit organization in 2000.

For 22 years, HAF has dedicated itself to developing agriculture and reducing poverty in Morocco. HAF has established organic fruit tree nurseries across seven provinces in Morocco, helping farmers gain agricultural skills. Additionally, HAF offers women literacy courses and professional training, while also linking marginalized communities to governmental and international agencies.

Combating Poverty with Tree Nurseries

In an interview with The Borgen Project, Ben-Meir affirms that the whole agricultural process begins with tree nurseries. Ecosia, a German eco-driven enterprise, primarily funds HAF’s nurseries, which have a total capacity of 2.44 million seeds through 2021. The nurseries grow a rich variety of fruits and nuts, as well as aromatic and medicinal plants. Traditionally, farmers have grown staples like barley and corn, covering 70% of the agricultural land but only yielding 15% of income. Transitioning to these lucrative products effectively improves farmers’ livelihoods and the environment, creating a sustainable outlook for poverty reduction in Morocco.

Ben-Meir told The Borgen Project, “Our tree planting program has 25 formal partnerships. Planting trees is the present and future of HAF’s financial sustainability.”

Women’s Empowerment

HAF is known for its participatory development strategies. The organization fully dedicates its revenue and donations to community projects. With a special focus on women’s rights, HAF mobilizes university students and rural women to run regular “Imagine” workshops, empowering women to find their voice, understand their needs and take action.

Another workshop, “Moudawana” family code, informs rural women of their legal rights according to the national landmark reform in 2004 that equalizes men and women in regard to marriage and children.

Ben-Meir articulated, “The participatory approach is embedded in government programs, constitutions, municipal charters and even the family code, enabling incredible fulfillment in community planning, as well as the ability to decide their own future and development. Yet, Morocco’s problem is the lack of that fulfillment.” Upon being asked why the participatory approach is so important to poverty reduction in Morocco.

He added, “We need to train people to be facilitators of community planning, finance the projects, train empowerment trainers and ensure that women are voicing with confidence what they seek in their lives and know what it is.”

Implementing Domestic Policies

As Ben-Meir mentioned, the Moroccan government has provided ample frameworks and strategies in recent years to target regional poverty and promote decentralization. HAF is among the local councils and NGOs striving to implement these policies and fulfill the government’s intent.

Ben-Meir emphasized, “A participatory development organization has only one assurance and that rests upon the people: the projects are what they decided and in their interests.”

So far, HAF has conducted “Imagine” workshops in more than 25 provinces with more than 2,500 women, engaged more than 3,000 university students and impacted more than 50,000 people through its tree program projects, as well as thousands of farmers through capacity-building programs.

Multicultural and Interreligious Development

In 2021, HAF undertook the operation of the USAID Dakira Program, which strengthens multicultural preservation. The objective of the program is to capture the stories of communities’ intercultural past—Jewish, Moroccan and Christian—to take ownership of the revitalization of their own histories.

In a world of increasing migration, intolerance and conflicts, enhancing interreligious and inter-ethnic solidarity in Morocco’s diverse social landscape could prove vital. Since 2012, HAF’s project “House of Light” has united local religious communities through the relationship between land and farming.

With the help of partnerships, HAF identified saints’ burial sites and cemeteries as free-loaned land for the benefit of neighboring farming communities. In the process of clearing, planting and restoring the land, HAF facilitates conversations between local Muslims, Jews and Christians, raising awareness of their history of unity and diversity.

Speaking proudly of their impact, Ben-Meir said, “When trees live 200 years bearing fruit and women’s empowerment has generational impact, only so much of it is quantifiable.”

Due to its unique location and diverse history, Morocco serves as a meeting point for various cultures and identities. As the High Atlas Foundation grows into one of the leading development organizations in the area, its achievements in agricultural work, women’s empowerment and interreligious efforts can serve as an inspirational story for other human development projects on the African continent and among Islamic countries.

– Shixin Zhao
Photo: Unsplash

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What The News Does Not Tell You – 3 Poverty Reduction Stories

Poverty Reduction StoriesAlthough the news tends to highlight negative stories surrounding global poverty, The World Bank states that extreme poverty has “rapidly declined.” The following is an overview of stories that demonstrate successes in poverty reduction in the world.

Poverty Reduction in Japan

Established in the year 2000 after the Asian financial crisis, The Japan Fund for Poverty Reduction (JFPR) provides “direct grant assistance to the poorest and most vulnerable groups in developing member countries (DMCs) of the Asian Development Bank (ADB).” Furthermore, the JFPR works to encourage socioeconomic development for the long-term future. 

Targeting poverty reduction initiatives, the ADB’s mission is to turn Asia and the Pacific region into a poverty-free place. It strives to “help its developing member countries reduce poverty and improve the quality of life of their people.” Home to 66% of the world’s poorest population, 1.7 billion people in this area live on less than $2 a day. The main objectives the ADB occupies for supporting its developing member countries, including Japan, are “policy dialogue, loans, equity investments, guarantees, grants, and technical assistance.” As of March 2013, The JFPR received $615.4 million in contributions from Japan — sustaining project grants and technical assistance. Also, the JFPR encourages the participation of non-government organizations and other stakeholders — assisting the most vulnerable groups in Asia.

Poverty Reduction in Kenya

Good News Network revealed that the use of a mobile money system in Kenya “has lifted 200,000 Kenyan Families Out of Poverty” — especially households with a female-dominant demographic. M-PESA is a text message-based payment system used in Kenya. Good News Network reports that a study published in Science shows that this production raised “2% of households in the country” above the poverty line. 

Research highlights that, in 2007, this invention reached 96% of houses in Kenya. Using an SMS messaging service, sending money or withdrawing or depositing cash does not require complicated bank infrastructures — reaching remote rural areas, too. When discussing the project, Annie Duflo, the Executive Director of Innovations for Poverty Action, said that she hopes “these results will inform and encourage the targeted scaling of mobile money services in other countries. While many other countries have a system, too few have the kind of nationwide infrastructure that now exists in Kenya.”

Poverty Reduction in Tanzania

Ecologi, a climate action community, has a mission to “inspire and empower businesses to accelerate global climate action.” During a project in Tanzania, it installed 500,000 fuel-efficient cookstoves. Unsustainable deforestation is increasing due to many countries worldwide using non-renewable biomass as a source of cooking. Ecologi reports that, in Tanzania, “the primary fuel source for over 90% of the population of around 48 million people is biomass.” 

As well as avoiding the production of 18.8 million tons of greenhouse gas emissions during the course of 10 years, it reduces the time and energy spent gathering this fuel — which is a task children and women are most likely to complete. Also, Ecologi mentions that this project in Tanzania “brings several benefits for local people, including freeing up of time and money for other income-generating activities, health benefits due to reducing exposure to air pollution in the home and increased food security due to nutrient retention with decreased cook time.” It coincides with multiple United Nations Sustainable Development Goals, including to “end poverty in all its forms everywhere.”

Poverty Throughout the World

These stories suggest that poverty is on the decline. However, with 719 million people living in extreme poverty around the world (9.2% of the entire population), there is still a need for more efforts in the fight against global poverty. The U.N. has 17 Sustainable Development Goals, the first being to “End poverty in all its forms everywhere.” One of the ways it plans to achieve this is to “eradicate extreme poverty for all people everywhere” by 2030. This includes ensuring “significant mobilization of resources from a variety of sources” and building “the resilience of the poor and those in vulnerable situations.”

– Katerina Petrou
Photo: Pixabay

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How Poverty Reduction Strengthens Social and Political Stability

Social and Political Stability
Poverty plays a primary role in many of the social and political issues visible around the world. Considering this, global poverty reduction stands as the solution to strengthening social and political stability worldwide.

The Connection between Poverty and Instability in Nepal

Nepal, a country in South Asia, stands as a strong example of how poverty connects to social and political instability. For much of its modern existence, Nepal has seen a steady stream of political instability and violence, visible in tragic events such as the Nepalese Civil War that lasted from 1996 to 2006 and many other political uprisings. While some of this instability links to Nepal’s historically weak governance, studies show a strong correlation between the nation’s poverty and political violence.

According to a research article by Lauren C. Griffin published in 2015, about 25% of people in Nepal survived on less than $2 per day. The history of extreme poverty in the nation opened the door for instability and violence in many ways. For instance, the Maoist insurgency beginning in 1996 led to Maoists taking over the education system to perpetuate their terror and recruiting impoverished people with grievances against the government to join the cause.

Because many of the Nepalese are trapped in this cycle of poverty with their basic needs going unmet, it is easier for political instability and radical terrorism to take hold. By helping to raise the quality of life and access to decent wages and education in Nepal, not only would residents be able to rise out of poverty but the country’s ever-present political and social chaos would be curtailed as well, says Griffin.

There is a broader consensus that helping to promote political stability and to solve social and political issues like those found in Nepal is one important way to fight poverty. “Regions that are afflicted with problems of poverty are more likely to experience crises and instability, and the reverse is also true,” said Dr. Ritu Lauter, a professor of International Studies and Political Science at Peninsula College in an interview with The Borgen Project. “When poverty rates are low, you are likely to experience more political stability… People in free and open societies are likely to fare better in life on all sorts of indicators of human security and well-being. Consequently, there is less likelihood of social and political upheaval and unrest.”

Women’s Rights and Access to Education

The prevalence of poverty typically impacts issues such as women’s rights and opportunities and access to education. Without regard for women’s rights and educational opportunities, cycles of generational poverty only continue. Dr. Lauer understands the importance of ending global poverty in order to find solutions to these issues. “Global poverty is associated with negative outcomes in all areas of life, be they social, economic or political,” she said in her interview with The Borgen Project.

“With more access to wealth come more opportunities to have a higher standard of living and a more comfortable lifestyle. When survival is not the only goal and societies have more resources available, investments in human development are more likely, thus supporting higher literacy rates and gender equality.”

According to the United Nations Educational, Scientific and Cultural Organization (UNESCO), “If all students in low-income countries had just basic reading skills (nothing else), an estimated 171 million people could escape extreme poverty. If all adults completed secondary education, we could cut the global poverty rate by more than half. ” Recognizing the importance of education in reducing poverty, the U.N. declared high-quality education one of its 17 Sustainable Development Goals for 2030, with the overall objective of reaching zero poverty.

The Potential Impact of Support

According to Oxfam, a significant majority of the global adult population living in poverty are women. These women face numerous obstacles in their efforts to escape poverty, including low wages and precarious working conditions. Providing these women with access to resources that can uplift them out of poverty not only benefits them individually but also contributes to the overall development of their impoverished nations.

For instance, women represent 45% of the agricultural workforce in developing countries. When women are given more opportunities, such as improved access to education and other resources to support their careers, it leads to better community nutrition outcomes and more efficient management and preservation of local natural resources, as stated by Global Citizen. Additionally, safeguarding women from violence and political oppression plays a crucial role in reducing poverty rates in any given region, fostering social stability, and promoting community growth.

Action to Address Social Issues

Work is already underway to end global poverty by addressing social issues like these. For example, a U.K.-based charity called the Nepal Education Foundation (NEF) is focusing on improving primary education in Northern Nepal. Not only does the NEF work to provide educators and schools with the resources and support needed but it also works with local communities in Nepal to “construct classrooms, toilets and playgrounds.” The NEF also helps with curriculum development.

Dress for Success, established in 1997, is a large nonprofit that works in more than 20 countries to empower women with resources and skills to attain economic self-sufficiency, enabling them to rise out of poverty. Dress for Success provides this support for impoverished women in several ways, including helping poorer women find outfits for job interviews and hosting programs that teach women leadership skills that will help them thrive in their employment endeavors and in life.

So far, the organization has helped more than 1.3 million women move toward self-sufficiency and independence. The efforts of Dress for Success not only help individual women prosper economically but trickles out into broader prosperity for whole communities and countries as a whole.

As the fight against global poverty continues, it is important to remember how improving political stability and social issues benefits not only individuals and their countries but the peace and prosperity of the world as a whole. Be it by promoting political peace, or by providing educational access to children and protecting women’s rights, the whole world benefits from global poverty reduction.

– Elijah Beglyakov
Photo: Flickr

How to Help Sri Lanka

Support for Sri LankaAccording to The World Bank, poverty rates in Sri Lanka have doubled between 2021 and 2022, rising from 13.1% to 25.0%. Within a year, 2.5 million people have fallen into poverty, leading to reduced spending in crucial areas like health care and education. This increase in multidimensional poverty necessitates immediate attention, as inflation stands at approximately 46%. While the country’s economic outlook may be dim, global organizations such as the United Nations International Children’s Emergency Fund (UNICEF) and the United Nations (U.N.), alongside local initiatives like Prithipura Communities, offer avenues for support and assistance through various fundraisers and campaigns.

Prithipura Communities

Established in 1964, Prithipura Communities is an NGO in Sri Lanka originally focused on aiding disabled children. Over the years, its scope has expanded to support children and families affected by the country’s social, political and economic challenges. Presently, Prithipura is actively involved in the “Cost of Living Crisis Appeal” project, accepting donations to provide food, education and health care services to those in need. The organization also offers opportunities for volunteering, providing assistance with visas for those willing to contribute on-site. Additionally, corporations such as The Emirates Airline and Maze have formed partnerships with Prithipura Communities, contributing to efforts.

UNDP Sri Lanka

The development program of the U.N. (UNDP) Sri Lanka has launched a crowdfunding platform called “Rebuild Sri Lanka” with the aim of reconstructing the country’s infrastructure. Through this initiative, individuals can donate and support the health care and food sectors. Furthermore, the UNDP provides farmers with seeds and farming equipment to enhance the agricultural supply chain. The campaign has garnered support from various corporate institutions such as Hema Holdings PLC, Dilmah Ceylon Tea Company, Brandix Apparel Limited, Citi Foundation and Amana Bank. UNDP Sri Lanka also offers career opportunities and regular updates for those interested in contributing to the cause. 

UNICEF Sri Lanka

With nearly half of Sri Lanka’s children requiring humanitarian assistance, UNICEF plays a vital role in child care and positive impact. Through its Sri Lanka branch, it provides opportunities for individuals worldwide to support the country. Donations made through the organization’s website directly contribute to helping children in Sri Lanka thrive and reach their full potential. Additionally, people can sign petitions, volunteer and spread awareness through social media. UNICEF’s current mission aims to raise $25 million to assist 1.7 million children in the country.

Looking Ahead

Sri Lanka’s multidimensional poverty crisis demands urgent attention and international support. Organizations like UNICEF, the U.N. and Prithipura Communities are exemplary leaders in driving positive change. Other avenues for support include Give2Asia, WFP and Red Cross Sri Lanka, which offer accessible projects and initiatives online. By offering guidance and opportunities to help Sri Lanka, these organizations foster unity, compassion and progress on a global scale.

– Sebastián Garcés
Photo: Flickr

How Fair Trade Fashion Reduces Poverty

Fair Trade Fashion and PovertyThe concept of sustainability and living sustainably has gained momentum in recent times, especially in terms of conscious living to eradicate human rights violations in the workplace. Alleviating global poverty is linked to making ethical and sustainable life choices, such as purchasing fair trade fashion and tackling the problems of overconsumption and inequality within the system of capitalism.

Fast Fashion and Poverty Perpetuation

From 2000 and 2010, global clothing consumption doubled from 100 billion to 200 billion pieces per year, leading many fashion outlets to shift their focus from producing high-quality, long-lasting items to cheaply made, disposable ones that can be sold at lower costs, thereby boosting competitiveness and profits. However, this overconsumption of goods such as fast fashion clothing has led to worker exploitation, as brands must produce items at faster rates.

Fast fashion companies have increasingly relied on unethical modes of production, such as sweatshops that subject workers to poor conditions and unfair wages, since the rise of cheaper fashion at the end of the 20th century. Even in the poorest countries of the world, where child protection laws and regulations are lacking, fast fashion brands continue to rely on child labor to maximize profits, depriving children of the opportunity to gain the education that can help them escape poverty in the future.

Reducing Poverty

Over the past decade, a growing body of research has demonstrated the perils of the fast fashion industry, sparking increased discussion around fair trade fashion. Brands that prioritize fair trade practices typically provide greater transparency regarding their supply chains than their fast fashion counterparts, thereby assuring consumers of no participation in worker exploitation of people who live in poverty. While fair trade fashion items may carry a higher price tag, they generally boast higher quality and a longer lifespan. More significantly, they guarantee better working conditions for those involved in the supply chain, as the money spent flows down to the bottom. The Fair Trade movement promotes equitable wages and opportunities in impoverished countries like Tanzania, India and Sri Lanka, helping to uplift people and alleviate poverty.

Fair Trade Fashion in Action

People Tree, a U.K.-based company with a Fair Trade certificate, is an excellent example of an ethical company that empowers Bangladeshi workers to rise above poverty. Founded in 1991, the company aims to ensure its products meet the highest possible ethical standards throughout the supply chain. They also strive to serve as a model of a Fair Trade business with moral values that prioritize both people and the environment, setting an example for the fashion industry and governments alike.

Power in the Hands of Consumers

Choosing to purchase fair trade fashion from companies like People Tree enables consumers to impact lives positively and prevent support for the cycle of extreme poverty in less developed countries. More people opting for fair trade fashion could discourage businesses from exploiting workers and producing cheap garments on a mass scale while facilitating the advancement of fair trade fashion.

– Hannah Naylor
Photo: Flickr

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Poverty Reduction in Zimbabwe

Poverty Reduction in Zimbabwe
Extreme poverty in Zimbabwe has gotten worse over the last decade due to agricultural industry failures and changing weather patterns. Still, the government’s strategy of Pfumvudza, introduced in 2020, is helping poverty reduction in Zimbabwe. When set against a background of progress in non-income poverty metrics, indicators show Zimbabwe should progress in the battle against extreme poverty over the next decade.

Agricultural Industry Failures

Due to heavy investment in agriculture during the Mugabe administration, up to two-thirds of Zimbabweans worked in agriculture and many Zimbabweans relied directly on the domestic agriculture industry for food security. Incomes from the agriculture industry are the lowest in the country due to low productivity and changing weather patterns causing long droughts, which have increased in frequency and intensity over the last 20 years. For example, “maize production in 2019 was only 36% of its 2017 level.” These two key factors have resulted in plummeting agricultural output and, therefore, losses in income for two-thirds of Zimbabwe’s workers.

The failing agricultural industry has pushed more Zimbabweans into extreme poverty. The U.N. defines extreme poverty as living on less than $1.90 per day, a rate that has increased in Zimbabwe from 21.4% in 2011 to 39.5% in 2021. This is deeply concerning as the extreme poverty rate for the whole of sub-Saharan Africa stood at 45.8% in 2011 and 39.7% in 2021, according to the World Bank.

Battling Extreme Poverty

The Zimbabwean government has attempted to battle the rise in extreme poverty linked to the agricultural sector by boosting agricultural productivity and reducing climate challenges in farming. To do this, it introduced a program called Pfumvudza, a name derived from the Zimbabwean phrase meaning “the blooming of new leaves during the farming season.”

Pfumvudza is a form of conservation agriculture focused on crop rotation, mulching and minimum tillage, which increased crop yields in areas where it was tried. Before the implementation of Pfumvudza in specific areas, about 92% of households relied on food aid from NGOs and the U.N. In the same areas, after the implementation, this rate fell to 43%.

By improving agricultural output, Pfumvudza helps poverty reduction in Zimbabwe, improving work conditions and pay for workers in the agricultural industry and food security for the whole country. The government has expanded the Pfumvudza scheme to 4.6 million plots in the 2022/23 season. This indicates that Zimbabwe’s extreme poverty rate could fall as the agricultural sector develops under the Pfumvudza strategy.

Progress in Non-Income Dimensions of Poverty

Unlike monetary measurements of poverty, Zimbabwe has performed well on the non-income dimensions of poverty. Infant mortality, maternal mortality and life expectancy rates have all improved significantly over the last decade and at a higher rate than the average for sub-Saharan African countries. Infant mortality decreased from 57 deaths per 1,000 live births in 2007 to 36 in 2021. Zimbabwe saw 579 maternal deaths per 100,000 live births in 2000, which reduced to 458 in 2017. Furthermore, life expectancy rose from 45 in 2000 to 61 in 2020.

Education provision quality and quantity have boomed over the 2010s, with spending on primary and secondary education quadrupling between 2009 and 2014. More than 90% of adults are literate and more than 90% of boys and girls finish primary school, according to a World Bank report. Education provision is key to poverty reduction in Zimbabwe because it allows individuals to improve their economic circumstances, so this increase in education provision could lead to poverty reduction in Zimbabwe in the long run.

With continued efforts to reduce conditions of poverty, Zimbabwe will see further progress and improvements on quality of life indicators.

– John Cordner
Photo: Flickr

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Analyzing Global Poverty Reduction in 2022

global poverty reduction in 2022
As the year 2022 drew to a close recent data from the World Bank reveals that this is “the second-worst year” for global “poverty reduction in the past two decades.” The reasons for the “steep slowdown of the global economy” are many – the lingering effects of COVID-19, Russia’s invasion of Ukraine, debt crises and many other sub-factors that exacerbate the situation. New projections show that 7% will still be living in extreme poverty by 2030 – considerably higher than the 3% goal. Global organizations such as Oxfam America, World Bank and its partners, have acknowledged the situation and launched various initiatives to support the poorest and most vulnerable.

The Global Pandemic

The COVID-19 pandemic had the biggest impact on the poorest people around the world. In comparison to pre-pandemic forecasts, the average income of those in the poorest 40% of the worldwide income distribution is 6.7% lower in 2021, while that of those in the top 40% is down almost 3%. The world’s poorest have not yet begun to make up for their revenue losses, worse yet the average income of the bottom 40% decreased by 2.2% between 2019 and 2021.

Due to the pandemic, an additional 163 million people live on less than $5.50 per day, bringing the world poverty rate from 7.8% to 9.1%. Moreover, an additional 97 million people live on less than $1.90 per day. The World Bank believes that three to four years’ worth of progress toward eradicating extreme poverty has been lost globally.

War in Ukraine

The ongoing war in Ukraine has also largely contributed to the rising cost of living and the slowdown of global poverty reduction in 2022. The repercussions of the war, the sanctions imposed on Russia, such as export bans, rose energy prices and caused huge supply-chain issues pushing 51 million people to fall into poverty according to UNDP.

The war has also led to 20 million people’s daily incomes in lower-middle-income countries falling below the poverty level of $3.20, increasing the percentage of the world’s poor to 9%.

Further data from UNICEF reveals that children carry the “heaviest burden of the economic crisis.” Children make up 25% of the world’s population and 40% of the further 10.4 million suffering from poverty in 2022. Estimates show that one in three children that grow up in poverty will continue to live in poverty for the rest of their adult life. According to UNICEF, children can benefit greatly from the introduction of poverty reduction methods, job initiatives and plans for economic growth.

Global Emergency Markets

Several causes, particularly the incredibly quick economic recovery following the epidemic, caused the energy markets to tighten up in 2021. But, once Russia invaded Ukraine in February 2022, the situation quickly worsened and turned into a full-fledged global energy crisis. Natural gas prices hit record highs, which had an impact on electricity prices in several markets. The price of oil reached its highest point since 2008.

In addition to making families poorer, forcing some factories to reduce output or even close their doors and slowing economic growth to the point that some nations are in the midst of a severe recession, higher energy prices have also led to uncomfortably high inflation.

Spate of Debt Crises

During the past year, developing countries increased debt loans in order to keep up with the rising cost of living and aggravated the debt crisis. The World Bank calculations show that 60% of the world’s poorest countries are “either in debt distress or at risk of it.”

Debt-ridden countries are incapable of making high-return investments in education, research and development, and infrastructure projects, significantly slowing down their economic growth and exacerbating global poverty reduction efforts.

Future Outlook

In the face of all the crises and uncertainties that the past few years have brought to the world arena, organizations like the World Bank’s International Development Association (IDA) are stepping up to “ensure the poorest aren’t left behind.” Its new $93 billion IDA20 package, which will run from 2022 to 2025, aims to help developing countries get to grips with the global crisis the world can’t ignore, the World Bank reports.

IDA wishes to prioritize investment in education and health, reinforce food security, take action on the undeniable threat that is climate change, help countries struggling with conflict and development and improve debt sustainability.

Similarly, The United Nations Secretary-General has set up a Global Crisis Response Group on Food, Energy and Finance in the U.N. Secretariat. Its goal is to help the world’s poorest by “making reserves available to countries at risk of hunger and famine, accelerating the deployment of renewable energy and urging international financial institutions to increase liquidity and fiscal space.”

The year 2022 saw an insecure and uneven economic recovery where global development faced a crisis and poverty reduction efforts took a hard hit. However, many international organizations have united in the common goal to create an ecological, more resilient and sustainable future.

– Ralitsa Pashkuleva
Photo: Flickr

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Why Addressing Global Poverty is Good for American Business

Addressing Global Poverty
Poverty is a complex global issue that affects millions of people around the world. Despite ongoing efforts towards addressing global poverty, a large portion of the population could still be living in extreme poverty by 2030. The fact that inequality within countries has either increased or remained unchanged, leading to more global inequality, has compounded this situation.

Global Poverty Crisis

As of 2015, 736 million people still face poverty, with 10% of the world’s population living in extreme poverty and 1.3 billion people experiencing multidimensional poverty. The impact of poverty has been devastating on the health and education of the poorest individuals. It is essential to keep working towards reducing poverty and promoting equality globally to improve the lives of those affected.

The global poverty crisis is a daunting challenge that requires the collective effort of individuals, businesses and governments to solve. American businesses have a unique opportunity to make a real difference in the lives of millions of people around the world by taking practical steps to address global poverty. From providing job opportunities to donating resources and funds, there are many ways businesses can help fight poverty. American businesses can invest in companies and projects that promote sustainable economic growth and poverty reduction. This can include investing in startups and small businesses that are working to create jobs and lift people out of poverty.

Responsible Investments

Responsible investment is one-way businesses can contribute to addressing global poverty, such as through the impact investment fund Root Capital. Root Capital has invested more than $1 billion in more than 700 businesses, helping more than 1.5 million people. Its work has enabled agricultural businesses to create jobs, incomes and choices for more than 2.4 million rural families.

Another example of responsible investment is Coca-Cola’s 5by20 initiative, which aims to empower 5 million women entrepreneurs by 2020. The initiative has provided resources, financing and training to more than 6 million women around the world.

Poverty Reduction Efforts Through Philanthropy

Several American businesses have made significant contributions to poverty reduction efforts through philanthropy. One notable example is Microsoft, which has donated hundreds of millions of dollars to organizations such as The Global Fund to Fight AIDS, Tuberculosis and Malaria. The Global Fund is a partnership between governments, civil society and the private sector. It aims to accelerate the end of the three diseases by investing in prevention, treatment and care.

The Bill and Melinda Gates Foundation has partnered with the United Nations Foundation’s Shot@Life program, which provides access to life-saving vaccines for children in developing countries. The program has helped to vaccinate millions of children against preventable diseases such as measles, pneumonia and polio.

The foundation has also donated billions of dollars toward health, education and development initiatives. Its Global Health Division has helped reduce the burden of diseases such as malaria, tuberculosis and HIV/AIDS, saving millions of lives in the process.

Takeda Pharmaceutical is another company that partnered with the Shot@Life program to “expand children’s access to life-saving measles vaccines in approximately 40 countries across Africa, Asia and Latin America.” Through this support, Takeda Pharmaceutical aims to help vaccinate millions of children by 2026, making a major contribution to reducing the prevalence of preventable diseases.

The Walmart Foundation is taking significant steps to address global poverty through philanthropy, committing to strengthening farmer-producer organizations in Madhya Pradesh and West Bengal, India. This two-year project will provide farmers with training and capacity-building activities with a focus on improving their proficiency in sales, marketing and production techniques. This will help the farmers improve the quality and quantity of their output and ultimately increase their income.

Using Advocacy to Address Global Poverty

Advocacy is another important way that American businesses could contribute to addressing global poverty. By using their influence, businesses can call for systemic changes that address economic injustice and inequality, support initiatives that provide access to education and health care and lobby for government support for poverty-reduction initiatives.

One example of a business using advocacy to address poverty is Microsoft. The company has called on governments to invest in initiatives that provide access to technology to all citizens, regardless of socio-economic status.

Microsoft has also advocated for increased access to financial services for disadvantaged communities, recognizing that access to credit and financial resources are critical to economic growth and development. Through its advocacy efforts, Microsoft is promoting more equitable access to technology and finance, which can help to reduce poverty and promote economic development.

It has also promoted digital inclusion and access to technology through its Airband Initiative, which aims to expand internet access in underserved communities worldwide.

Bluetown, a company specializing in deploying last-mile technologies to expand rural access to high-speed internet and promote economic opportunities, has partnered with Microsoft’s Airband Initiative to accelerate connectivity projects in Ghana. The current internet penetration rate stands at only 32.5% in Ghana. To bridge this digital divide and promote economic development in these underserved communities, Bluetown and Microsoft are aiming to bring internet access to nearly 2 million people. This partnership demonstrates how innovative technology solutions and collaborative partnerships can make a meaningful and substantial difference.

Enhancing Customer Relations

Investing in addressing global poverty, not only promotes corporate social responsibility but also enhances customer relations. Companies that take steps towards reducing poverty can earn the support and loyalty of customers who appreciate their efforts. Furthermore, businesses can benefit from reduced costs and increased profits by investing in poverty reduction initiatives, leading to improved public opinion and financial gains.

Addressing global poverty also improves the quality of life for people in developing countries, including access to education, health care and other essential services, leading to better health and increased opportunities. This creates a more favorable business environment and attracts foreign investment.

In conclusion, addressing global poverty is a win-win situation for American businesses. By actively participating in poverty reduction efforts through responsible investment, philanthropy and advocacy, American businesses can create new markets, increase economic stability and improve the quality of life for people in developing countries. This leads to long-term sustainable economic growth for American businesses and a brighter future for all.

– Nkechi First
Photo: Flickr