• Link to X
  • Link to Facebook
  • Link to Instagram
  • Link to TikTok
  • Link to Youtube
  • About
    • About Us
      • President
      • Board of Directors
      • Board of Advisors
      • Financials
      • Our Methodology
      • Success Tracker
      • Contact
  • Act Now
    • 30 Ways to Help
      • Email Congress
      • Call Congress
      • Volunteer
      • Courses & Certificates
      • Be a Donor
    • Internships
      • In-Office Internships
      • Remote Internships
    • Legislation
      • Politics 101
  • The Blog
  • The Podcast
  • Magazine
  • Donate
  • Click to open the search input field Click to open the search input field Search
  • Menu Menu

Archive for category: Poverty Reduction

Information and stories about poverty reduction.

Charity, Developing Countries, Development, Global Poverty, Poverty, Poverty Reduction

Fighting Poverty in South America

Fighting Poverty in South America
A long history of imperialism, turmoil and instability has manifested itself into modern issues of poverty in South America. Countless grassroots and nongovernmental movements are providing help to the poor in this region. Many funds often drown in the complexities of bureaucratic and organizational structures, unfortunately. One individual is repurposing the term “influencer culture.” This refers to the social leverage that internet users with clout have. Aaron Murphy is creating mini-docuseries for awareness and sharing his personal payment service usernames. He is raising funds at a global scale that he directly pumps into the community. He is fighting poverty in South America through social media and videos.

Aaron Murphy

Aaron Murphy traveled to South America on a backpacking trip to learn Spanish. He now wanders across states in the region — mainly Ecuador, Peru, Colombia and Venezuela — to empower families and communities. His entire journey is available for public access on his social media, specifically his YouTube and Tik Tok accounts. His posts and videos often include an effort to promote awareness along with a call to action. Notably, the content available on these platforms provides a candid view into the everyday life of people living in poverty in South America.

The intent is not to romanticize a serious issue. Instead, he aims to connect with his viewers, sharing the very human reality beyond the understanding of people who live with less. He includes mini-documentaries and conducts interviews with residents. Murphy willfully makes an effort to understand the communities he is in. Murphy has also vocalized part of his videos’ purpose is to remind viewers of the privileges and blessings they experience daily.

Vlogs and Awareness

Murphy’s posts calling people to action have gained large traction recently, especially on Tik Tok. The app’s algorithm works to boost trending videos and topics. His audience is growing along with efforts to support his organization. Murphy provides continuous updates on different projects, giving followers a transparent view of where their proceeds go. His videos also focus on documenting dialogue between individuals and families. He also translates what they say into English subtitles.

Murphy films his videos into vlogs. They cater to a younger audience and have a natural look. One series of videos prompted a wave of global action at the beginning of March 2021. Murphy was following a Venezuelan native community without quality access to housing and food. In the first video and caption, he showed the livelihood of the struggling community. He then urged followers to donate through Paypal and Venmo. Followers raised $12,000 after Murphy posted the video. This gave the Murphslife team the ability to provide the community beds for 112 huts.

The Murphslife Foundation

The Murphslife Foundation accepts funds through Patreon, Venmo, Paypal and Cash App to go towards its efforts fighting poverty in South America. It is a largely unique approach to tackling poverty in South America, though an effective one for convenient participation among younger activist communities. The organization has no connection to any tax-exempt status. Perhaps a testament to its efficacy, the organization is a young and rapidly growing one.

Oftentimes, there is little opportunity to provide direct help for international causes. Initiatives to eradicate poverty in South America have become saturated and commodified in ways similar to that of an enterprise. The nonprofit and not-for-profit organizations affect the people negatively. This takes place, though the organizations are important within the larger picture of a long-term solution to poverty.

It has an association with nationalities and governances, forced through sanctions and other diplomatic complications. Potential donors dull the impact of a donation when dissuaded from giving to charities for these political complications. Murphslife shows how short-term results are also incredibly effective solutions to help those in need. Going forward, hopefully, other organizations and influencers will follow Murphy’s model of fighting poverty in South America. This will help them anchor their support in the fight to end poverty as a whole.

– Danielle Han
Photo: Flickr

April 15, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-04-15 20:18:552024-12-13 18:02:27Fighting Poverty in South America
Global Poverty, Poverty Reduction

Technological Advances in Agriculture in Egypt

Agriculture in EgyptImprovement in agriculture is essential to fighting poverty in developing countries. Agricultural growth leads to economic growth which results in employment opportunities and improves food security. Agriculture is a major component of the Egyptian economy. Agriculture in Egypt accounts for 11% of gross domestic product (GDP) and 23% of all jobs. In Upper Egypt, 55% of employment is related to agriculture. In addition, more than half of the population in Upper Egypt is living under the poverty line. Expansion of agriculture through technological innovations can help productivity and alleviate poverty in all areas of Egypt.

Water Conservation

The Nile River provides Egypt with 70% of its water supply. In a 2019 report, measurements determined that agriculture uses more than 85% of the country’s share of the Nile, according to the Egyptian Center for Strategic Studies. However, due to drought, Egypt is “water-poor” because it provides 570 cubic meters of water per person per year. A country is water-poor when people do not have access to a sufficient amount of water, which is less than 1,000 cubic meters a year.

In 2020, to combat the water shortages, a government project that the Ministry of Water Resources and Irrigation and Cairo’s MSA University developed, launched a mobile app that receives data from a sensor buried in the soil to detect moisture levels. This technology allows farmers to tell whether or not their crops need water, preventing excessive watering of crops. This modern irrigation method will lead to reduced water consumption, lower production costs and increased crop productivity, which will improve agriculture in Egypt.

Digital Agriculture

In 2019, the Food and Agriculture Organization (FAO) and the Egyptian government launched a program to enhance agricultural productivity through digital technology. Implementation of digital technology helps farmers access information to better manage crops and livestock and thus help them make better agricultural decisions. Digital technology also helps to enhance food security by reducing production costs and waste. It also increases crop productivity with the availability of accurate data to calculate production activities like estimating the daily needs of irrigation and fertilization.

Information Communication Technology (ICT) applications facilitate the flow of information to farmers, provides services to farmers and expands access to markets. With the help of several research institutions of the Agricultural Research Center, the program converted technical content into digital content that one can access via mobile application. With the adoption of mobile applications, agriculture in Egypt will expand as a result of increased access to resources.

Agricultural Innovation Project

The Ministry of Agriculture and Land Reclamation (MALR)lead the 2020 to 2023 Agricultural Innovation Project (AIP). The initiative aims to promote innovations in technologies to improve several issues in agriculture. These issues include inefficient farming techniques that lower farm output and food production and other inhibitors of processing crops like poor post-harvest facilities and marketing infrastructure. The focus on creating innovative solutions will increase income for small-scale farmers in Upper Egypt.

The project supports digital access as a technological innovation so that farmers can better understand and access information surrounding the market and input supply. In addition, the project works closely to support small-scale farmers by improving market access for smallholders and improving institutional support.

Overall, food insecurity and poverty can reduce over time with the expansion of agriculture in Egypt by means of technological innovations.

– Simone Riggins
Photo: Flickr

April 12, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-04-12 07:30:272021-04-09 08:31:48Technological Advances in Agriculture in Egypt
Global Poverty, Poverty Reduction

The SOPPEXCCA Coffee Cooperative in Nicaragua

SOPPEXCCA coffee cooperativeCoffee production in Nicaragua is a steadily maturing industry. The coffee industry in Nicaragua accounts for more than $500 million a year in exports and is responsible for more than 200,000 jobs. Roughly 40,000 coffee farmers and their families rely on the coffee industry as their primary income and support. But, despite contributing the lion’s share, small-scale producers are often left behind with paltry benefits. The Society of Small Producers for Coffee Exports (SOPPEXCCA) engages this issue by supporting farming families in Nicaragua. The SOPPEXCCA coffee cooperative was founded in Nicaragua in 1997 with the intention of improving the lives of its members and communities in the Nicaraguan coffee industry.

Coffee in Nicaragua

The rise of specialty coffee is promising for Nicaragua. Nicaraguan beans are distinctly known for their mild and citrus-like taste and are consequently gaining traction in the global market. Roughly 60% of the nation’s coffee output comes from northern regions like Jinotega where SOPPEXCCA was founded.

Most coffee growers face economic challenges beyond living a humble farming life. The crops require a decent amount of maintenance and are prone to environmental risks. A leaf disease called “la roya” puts 30-40% of coffee plants at risk of destruction and hurricanes destroyed 10-15% of the coffee harvest in 2020. Additionally, many children often have to dedicate school time to the farms due to the sheer amount of work involved in producing coffee.

The SOPPEXCCA Coffee Cooperative

SOPPEXCCA empowers farming communities with long-term solutions that stimulate financial literacy, strategy and growth. By building educational institutions, promoting gender equality, utilizing sustainable solutions and communicating with farmers, the cooperative helps give farmers life skills to improve their economic standing. The cooperative works in accordance with the U.N. Millennium Development Goals, which include eradicating extreme poverty and hunger. Farmers and communities who join SOPPEXCCA are also protected by a number of international securities. This includes Fair Trade certification and Food4Farmers benefits. These efforts are part of SOPPEXCCA’s anti-poverty agenda.

Muchachitos del Cafe

SOPPEXCCA’s youth movement, Children of Coffee, reaches out to younger generations through education. By providing classes, scholarships and building schools, SOPPEXCCA looks to fund programs that help kids who come from farming backgrounds.

Women’s Empowerment

The SOPPEXCCA coffee cooperative is led by Fatima Ismael and boasts a female membership rate of 40%. Ismael took over leadership in 1997 and pointed the cooperative toward a robust plan on a women-centric approach. Participating coffee businesses and entrepreneurs have supported initiatives for improving public health by investing in cervical cancer prevention programs.

The cooperative has also launched a number of movements to support women in the field of coffee agronomics. The coffee-growing industry is generally typified as masculine. But, cooperatives such as La Fondacion entre Mujeres and Las Diosas, within SOPPEXCCA, seek to empower women in roles typically reserved for males. SOPPEXCCA also supports female coffee producers by giving them the tools and knowledge needed to succeed in the industry, such as marketing and management skills.

Empowering Farmers

SOPPEXCCA also equips farmers with the entrepreneurial skills required to participate in the fast-paced global coffee market. In response to la roya, it partnered with a number of crop diversification outlets to help farmers grow safer and more resilient plants such as cacao. The cooperative has started a chocolate factory to help create jobs and support farmers. SOPPEXCCA also connects small-scale coffee producers with large corporations such as Starbucks, allowing them to apply for loans that can jumpstart their business careers.

The Rise of Craft Coffee

Caffeinated beverages are on the rise within the global market and Nicaraguan coffee will likely be one contender among many pioneering trends. Since its establishment, SOPPEXCCA has significantly grown. It started with fewer than 70 men and women coffee producers and since expanded to 650 men and women producers, organized in 15 cooperatives in SOPPEXCCA. By supporting Nicaraguan coffee farmers, SOPPEXCCA supports poverty reduction in the country.

– Danielle Han
Photo: Flickr

April 5, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-04-05 06:31:122021-05-11 06:34:14The SOPPEXCCA Coffee Cooperative in Nicaragua
Global Poverty, Nonprofit Organizations and NGOs, Poverty Reduction

How the Roger Federer Foundation Alleviates Poverty

Roger Federer FoundationRoger Federer is one of the most successful tennis players in the world and a humanitarian with a desire to help the less fortunate. In 2003, the Roger Federer Foundation was created with the aim of shaping a brighter future for underprivileged children in southern Africa and Switzerland. Federer believes that education is the most powerful weapon one can have to escape situations of poverty as it has the power to transform lives and propel people into successful and prosperous environments.

The Roger Federer Foundation

Since its creation, the Foundation invested $52 million on education initiatives in 7,000 kindergartens and elementary schools in order to achieve its mission. Its projects both help get more kids into schools but also help improve the quality of education that children get once they attend school. The Foundation aims to give children control of their destinies, where being born into poverty does not restrict one’s life chances.

Achievements in 2020

Despite an unprecedented global pandemic that sent much of the world into lockdown, the Foundation has had huge successes as documented in the 2020 Roger Federer Foundation Annual Report. As many schools across the world closed, many of the Roger Federer Foundation’s poverty alleviation aims also had to be put on hold as they are closely linked with education. However, the Foundation still managed to create an impact by donating $1 million to support 64,000 children in Africa and their families.

In terms of an impact, the Foundation has seen significant results in 2020. In line with its school readiness strategy, almost 10,000 teachers can now support young students in a manner ideal for their age group. Additionally, almost 90% of preschools and feeder schools have a teacher mentoring program in place to ensure teacher development and improve the quality of education. Furthermore, about 80% of these schools prioritize nutritious meals for the students. A particularly impressive result is that 75% of preprimary school level children have successfully developed in all aspects required for their age group.

Such interventions ensure children in situations of poverty have access to quality education, ensuring that they are ready and equipped to attend school and reap the benefits of education from the very beginning. These are just some of the examples of a very long list of successes of the Roger Federer Foundation in alleviating poverty for children and putting them on track for success. The Foundation has set a goal to introduce the school readiness strategy in six countries in southern Africa and up to 3,000 institutions in each country.

The Future

The Foundation works in line with Sustainable Development Goal 4.2, “Equal access to quality preprimary education.” The organization wants to improve not only children’s school readiness but the readiness of schools as well. The overall goal is to grant more than 1.5 million learners a proper start to their education, early on. Federer shows his commitment even further by using his fame to raise funds for the Foundation. In April 2021, Federer announced that he would be auctioning his personal memorabilia to raise funds for the Foundation to continue its educational efforts. Federer is is an inspiring example of a humanitarian sports star.

– Lizzie Alexander
Photo: Flickr

March 30, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-30 03:43:242021-05-29 03:44:07How the Roger Federer Foundation Alleviates Poverty
Developing Countries, Global Poverty, Poverty Reduction

How Mobile Money Accounts Can Transform Africa

Mobile Money accountsMobile Money refers to digital payments that require no bank account to complete the transaction. A telecom provider, Verizon in the United States, for example, performs the function that a bank account would traditionally carry out. Mobile money accounts are particularly prevalent in emerging markets such as sub-Saharan Africa because individuals and small businesses in these places lack access to formal savings accounts and credit.

Mobile Money in Sub-Saharan Africa

There are more than one billion registered mobile money accounts worldwide and sub-Saharan Africa makes up nearly half of those accounts. The implementation of digital finance has the capability to boost an emerging nation’s GDP by 6% ($3.7 trillion) by 2025. Boosting sub-Saharan Africa’s economy by this amount would be the same as adding an economy the size of Germany to the global market.

COVID-19 Accelerates Mobile Money Usage

African governments have worked to increase the use of mobile money accounts to stimulate the national economy by reducing barriers to sign up. Rwanda implemented lockdown restrictions in response to the COVID-19 pandemic and mobile money transfers doubled within a week after the placement of these restrictions. Other African nations followed Rwanda’s lead and also eased restrictions on mobile money accounts, hoping to accelerate economic growth amid the global crisis.

The Success of Mobile Money in Africa

Roughly one in 10 African adults utilize mobile money accounts, which equates to about 100 million active accounts. This is more than double the number of accounts in the second-biggest region for mobile money, South Asia. MTN, the largest mobile telco in Africa, has 171 million customers, far outweighing leading African banks such as Ecobank and Barclays Africa, which have between 11 million and 15 million customers.

Mobile phone penetration in Africa is on average 80%, whereas banking penetrates approximately 40% of Africa. Telcos have found ways to create client experiences that are attractive to African consumers, with minimal restrictions and time investment necessary to set up mobile money accounts. There are often no transaction fees on bill payments and merchant acceptance is widespread, making mobile money an attractive way for African citizens to build wealth and manage their finances.

How Mobile Money Reduces Poverty in Africa

Studies predict that by 2025, 84% of Africans will have access to a mobile SIM card connection. Furthermore, mobile money payments will be crucial to the success of individuals, businesses and the overall African economy. Mobile payment technology allows people to manage their money securely, regardless of credit history. It also removes the barriers that people typically experience with bank account access. Mobile money essentially allows for financial inclusion. Mobile money transactions have the potential to reduce poverty in Africa and financially include millions of previously excluded people.

A study by the Gates Foundation found that mobile money directly impacts an African household’s ability to deal with shocks and extreme poverty. For example, in Uganda, mobile money increased food security by 45% for households far from a bank. In Kenya, mobile money account holders who experienced a shock had no decrease in consumption level, compared to a 7% decrease in consumption for households without a mobile money account.

The Future of Mobile Money

Mobile money fosters financial resilience and thus reduces poverty levels. Households with mobile money accounts are able to respond to unforeseen events. For example, if there is a flood, a household with access to mobile money can rely on the easy transfer of money from friends and family to support them even if they live far away. Since mobile money account usage increases per capita consumption and savings, it thus reduces the rate of poverty.

Mobile money has long-term impacts on poverty, especially in female-headed households. It has the power to empower millions of women. Digital payment platforms can give women in male-headed households more financial independence and can help them increase their savings.

According to research, increased consumption rates due to mobile money account utilization drove 196,000 households out of extreme poverty in Kenya. The ability of mobile money to lift African households out of poverty is impressive and shows promise for the continent’s future economic development.

– Tatiana Nelson
Photo: Flickr

March 21, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Yuki https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Yuki2021-03-21 07:30:362021-03-21 05:57:15How Mobile Money Accounts Can Transform Africa
Global Poverty, Poverty Reduction

IDB Lab: Including the Traditionally Excluded

traditionally excludedOne of the gravest mistakes made when discussing development initiatives is presuming to know what communities’ most relevant problems are without involving those experiencing them. The members of traditionally excluded communities have the necessary knowledge to not only identify the best solutions to the challenges they face but to articulate and call attention to these challenges in the first place. Including traditionally excluded communities in the innovation process is a key ingredient in tackling some of the biggest development challenges of today. IDB Lab is an innovation lab born out of the Inter-American Development Bank Group that aims to do just this, promoting solutions that have been developed with and for excluded communities.

Incubating Innovation

IDB Lab mobilizes financing, knowledge and connections to support creators of inclusive solutions geared to improve lives in Latin America and the Caribbean. These innovative projects target people who are usually excluded from traditional markets. The projects also target populations made vulnerable by economic, social or environmental factors. Such people often do not get to participate in the decision-making process that influences public and private services designed in their favor. IDB Lab prioritizes the involvement of beneficiaries to ensure that relevant solutions are proposed and implemented.

Since 1993, IDB Lab has deployed more than 2,300 operations across 26 Latin American and Caribbean countries, amounting to more than $2 billion put toward development projects. These have included 161 loans, 144 equity investments and more than 2,000 technical cooperation projects. The creative thinkers who champion these ideas come from universities, non-governmental organizations, private firms, and importantly, excluded populations.

The Process

IDB Lab relies on crowdsourcing so that excluded individuals can voice their challenges as well as their preference and knowledge of solutions. Crowdsourcing is essentially gathering and applying the wisdom of a group, a practice that has become increasingly popular and feasible with the emergence of smartphones and social media.

Crowdsourcing fills knowledge gaps and the people in need of the solutions are engaged in it. IDB Lab follows a seven-step process when crowdsourcing data.

7-Step Crowdsourcing Process

  1. Excluded individuals voice their challenges
  2. The group of excluded individuals ranks these challenges
  3. Creative thinkers supply innovative ideas as solutions
  4. These ideas compete with one another and become solutions
  5. IDB Lab and partners fund the winning solutions
  6. Impactful innovations are generated
  7. The innovations developed ideally solve the problems

Informed Decisions, Effective Solutions

IDB Lab favors interdisciplinary collaboration as opposed to a single-sector approach, recognizing the complexities and varying perspectives present among the challenges faced by traditionally excluded communities. Technology facilitates inclusive communication, thus, the group has a strong tech basis. These technologies also ensure democratic and demand-driven development. Technology also offers efficient tools to tackle international development in inventive ways.

Successful social innovation requires sourcing and employing the knowledge of traditionally excluded populations. The more accurate the understanding of a community’s hardships, the more effective the proposed solutions are going to be. IDB Lab recognizes this. IDB Lab finds those who are experiencing hardship and offers them a voice. Crowdsourcing techniques enable IDB Lab to identify and support the development initiatives that are most relevant, inclusive and impactful.

– Margot Seidel
Photo: Flickr

March 16, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-16 01:30:062024-05-30 07:56:49IDB Lab: Including the Traditionally Excluded
Developing Countries, Global Poverty, Poverty Reduction

4 Inventions to Help People in Poverty

Help People in PovertyMore than 700 million people globally are living in extreme poverty. Through the use of creativity and innovation, individuals and organizations have come up with inventions to help people in poverty improve their living conditions.

The SOCCKET Ball

In 2019, 770 million people globally did not have access to electricity and most of these people reside in Africa. In 2010, four Harvard undergraduates developed the SOCCKET ball so that impoverished people could have an alternative light source in their homes. The kinetic energy stored in the durable soccer ball is generated through kicking. The ball can then be used to power an LED lamp. During the day, children can kick the soccer ball around for fun. At night, it can then be used as a power source. With 30 minutes of movement, the ball can power an LED lamp for three hours.

The SOCCKET ball requires further revision and development because people have reported durability issues. However, the concept can inspire other innovative energy inventions.

The Wonderbag

Open fire cooking contributes to respiratory diseases and greatly impacts the health of people. Unfortunately, more than three billion people around the world do not have another means of cooking. Open fire cooking also means that girls and women lose a significant amount of time and labor that could be better used for educational and developmental endeavors.

The Wonderbag is a non-electric slow cooker created to help eliminate the need to cook over fires. After bringing a pot of food to the boil and placing it in the insulated Wonderbag, the food will continue cooking for up to 12 hours without additional heat. The Wonderbag has a range of positive benefits. It reduces indoor air pollution by 60% and saves 1,000 hours that would otherwise be lost in unpaid labor.

Evaptainers

Since many impoverished people do not have access to electricity, they usually also do not have refrigerators to store food optimally.

The Evaptainer is a portable refrigerator that can prolong the life of food in warmer climates. The eco-friendly container does not need electricity due to its innovative cooling technology. The Evaptainer can also store medicines like insulin.

Liter of Light

Liter of Light is a global, grassroots movement that uses inexpensive materials to provide solar lighting to impoverished people without access to electricity. It began in 2011 with the aim of providing low-income communities in the Philippines a source of light. Recycled plastic bottles filled with water and bleach are secured into the roof to provide lighting daytime. The bottle lights can be upgraded with micro-solar panels and LED bulbs for low-cost night lighting. Liter of Light has installed more than 350,000 bottle lights in more than 15 countries.

Although poverty continues to be a global issue, people around the world are creating new inventions to help people living in conditions of poverty. These small innovations are working to change the lives of millions, one invention at a time.

– Camryn Anthony
Photo: Flickr

March 11, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-11 23:33:192021-03-11 23:33:194 Inventions to Help People in Poverty
Global Poverty, Poverty Reduction, Women

How Financial Inclusion Can Fight Poverty

Financial inclusion can fight povertyRoughly 1.7 billion adults around the world are unbanked and most unbanked adults live in developing countries. Unbanked people have limited political, economic and social power and influence. For roughly half of the world’s unbanked who come from the most impoverished 40% of households in their economies, inaccessible financial services compound problems of poverty. Financial inclusion can fight poverty as it opens doors for people to improve their lives. The pace of technological advancement around the world is bringing universal access to financial services closer to fruition.

The Global Unbanked

Unbanked people are not connected to any type of financial institution. The most commonly cited reasons for being unbanked are not having enough money, account expenses, the distance of financial services and insufficient documentation. Nearly half of the unbanked population falls into just seven economies. The highest numbers of unbanked people are in China and India. It can be clearly noted that banking and poverty are closely related.

“Financial tools for savings, insurance, payments and credit are a vital need for poor people, especially women, and can help families and whole communities lift themselves out of poverty,” says Melinda Gates. Without a bank account, people cannot sufficiently save and the cash is not well protected. The digital economy also has the benefit of keeping a clear record of financial activities, which banks can use when underwriting loans. Loans are among the financial tools that are essential to financial growth and stability.

The Gender Gap

Women make up the majority of the unbanked population in most developing countries. Women may face deepened or additional gender-based barriers to account ownership, rooted in financial institutions, governments or society.

Financial institutions often lack products and policies that are gender-inclusive. For instance, women may find it difficult to obtain the identification or the assets needed to open and maintain an account, sometimes due to government-enforced barriers. Additionally, banking-related expenses are also a burden for women looking to enter the formal economy. Finally, the responsibility of unpaid household labor, along with barriers to education, keep many women from earning enough money to access financial services.

The Societal Roles of Women

Women may earn sufficient money but could be part of society that does not allow for them to connect to a financial institution.

For instance, the tradition of men being the head of household and in control of the finances leaves some women with little to no influence in matters of money. Approximately one in 10 women in developing countries are not involved in spending decisions involving their own earnings.

Women’s Empowerment for Poverty Reduction

Women must be part of financial inclusion efforts as they are integral to fighting poverty. Bill Gates explains that women are most likely to be behind the decisions that benefit the family. More women-led businesses and reduced inequalities are ways that an emphasis on financial inclusion for women can further a nation’s development.

Financial Inclusion Using Fintech

An emerging industry is making strides in financial inclusion. Financial technology (fintech) can be described as technological innovations in the processes and products of financial services. Fintech offers solutions to many of the problems at the root of financial exclusion. A fundamental problem is the lack of time or money to travel to distant financial institutions. Fintech has given users the convenience of accessing their accounts and financial services on a mobile device.

Fintech development has been gaining momentum since the COVID-19 pandemic began. Touchless transactions and banking reduce the risk of transmitting COVID-19 and have led many to embrace digital payment, in business and in personal practice. Fintech leaders are proving that underserved communities can be reached through financial technologies. Significantly, this helps foster financial stability for the formerly excluded.

Female-led fintech, Oraan, is working toward financial equality in Pakistan because women make up 48% of the population but only 6.3% of the formal economy. Oraan developed a platform that allows for digital savings groups. Savings groups can help empower women and ensure financial equity as they are well-established financial tools.

The Road to Universal Access

Because financial inclusion can fight poverty, digitized financial services are an effective way to improve access and inclusion. Online banking communities are empowering individuals and opening up opportunities for economic growth. By facilitating conversations about finances, informing underserved groups on the best financial practices and ensuring digital finance infrastructure is accessible, the world can make greater strides toward financial inclusion.

– Payton Unger
Photo: Flickr

March 10, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-10 08:34:042024-05-30 07:56:45How Financial Inclusion Can Fight Poverty
Developing Countries, Poverty Reduction, Technology

4 Ways Digital Farming Increases Productivity

Digital FarmingThe expansion of the digital age catapults the world into new methods of productivity. Utilized in the sectors of farming and agriculture, technology increases capabilities. Primarily, the introduction of mobile phones for digital farming heightens this change. Expanding internet and digital connection in the developing world has the potential to bring about positive outcomes that will help reduce poverty.

4 Ways Digital Farming Increases Productivity

  1. Network Building: Digital technology increases productivity by integrating mobile phones and internet services into the daily practices of farmers. Mobile technology builds networks through which farmers share information about improved practices and ecological data. In Africa, the price of mobile internet dropped by 30% since 2015, allowing more of the general public to utilize these new methods. This increase also required government involvement to establish national strategies and manage communications.
  2. Job Opportunities for Women: In regard to farm production, giving women more access to mobile technology allows productivity to grow by 4%, leveling the playing field between men and women. This provides women with access to knowledge and information regarding the detailed aspects of farming that at one point remained out of reach.
  3. Data Sharing: Implementing new farming technologies requires a commitment to the progression of change. Nations must look long-term to prepare for these changes in production to yield viable results. The costs necessary for production and distribution will decrease through the utilization of networking, where farmers gain the ability to make decisions that are well informed. Higher levels of data available fuel these improvements and streamline investments toward international food production.
  4. Increased Efficiency: Mobile technology will support the growth of efficiency and accuracy through a connected network of farmers. Data indicates that when a developing nation’s internet access increases by 10%, the GDP of this nation may increase by 1.35%, improving the economy. Rwanda has been praised for its work to improve the digital penetration of the economy. Rwanda helped 93% of its population gain access to a 3G network and is one of the fastest-growing African economies.

The Future of Digital Farming

Mobile technologies offer lasting improvements in the agricultural sector but risks still exist. The World Bank acknowledges these risks, such as a lack of cybersecurity, a concentration of service providers and potential job loss because positions will shift. However, the benefits of digital farming in developing countries seem to outweigh the risks. As a result, farmers are able to expand their knowledge and improve their farms. This in turn improves their yields, addresses food security, and most importantly, alleviates poverty. The World Bank states that digital technology should not be seen as the answer to all problems, however. Investments for road improvements, uninterrupted electricity and post-harvest storage facilities are also crucial and should not be overlooked.

– Kate Lucht
Photo: Flickr

March 10, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-10 00:08:162021-03-10 00:08:164 Ways Digital Farming Increases Productivity
Global Poverty, Poverty Reduction

The Spices Alleviating Poverty in Vietnam

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

The Spice Industry in Vietnam

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

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

Regulated Spice Farming

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

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

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

The 3 Essential Spices Alleviating Poverty in Vietnam

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

A Poverty Reduction Spice Success Story

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

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

– Veronica Booth
Photo: Pixabay

March 5, 2021
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Kim Thelwell https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Kim Thelwell2021-03-05 01:30:332021-03-04 06:42:35The Spices Alleviating Poverty in Vietnam
Page 21 of 63«‹1920212223›»

Get Smarter

  • Global Poverty 101
  • Global Poverty… The Good News
  • Global Poverty & U.S. Jobs
  • Global Poverty and National Security
  • Innovative Solutions to Poverty
  • Global Poverty & Aid FAQ’s
Search Search

Take Action

  • Call Congress
  • Email Congress
  • Donate
  • 30 Ways to Help
  • Volunteer Ops
  • Internships
  • Courses & Certificates
  • The Podcast
Borgen Project

“The Borgen Project is an incredible nonprofit organization that is addressing poverty and hunger and working towards ending them.”

-The Huffington Post

Inside The Borgen Project

  • Contact
  • About
  • Financials
  • President
  • Board of Directors
  • Board of Advisors

International Links

  • UK Email Parliament
  • UK Donate
  • Canada Email Parliament

Get Smarter

  • Global Poverty 101
  • Global Poverty… The Good News
  • Global Poverty & U.S. Jobs
  • Global Poverty and National Security
  • Innovative Solutions to Poverty
  • Global Poverty & Aid FAQ’s

Ways to Help

  • Call Congress
  • Email Congress
  • Donate
  • 30 Ways to Help
  • Volunteer Ops
  • Internships
  • Courses & Certificates
  • The Podcast
Scroll to top Scroll to top Scroll to top