Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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How Agroforestry Can Reduce Global Poverty

Agroforestry Can Reduce Global PovertyForests provide food, medicine, fodder and energy for 250 million of the world’s extreme poor. If utilized properly, the method of agroforestry can reduce global poverty. The resources and benefits that forests can provide are often inaccessible to those in poverty due to the private ownership of forests.

Ownership of Forests

Approximately 77% of the world’s forests are owned and administered by governments that do not recognize the claims of indigenous peoples and local communities to the land. Since government priorities do not always align with community needs, the locals who need the forests to survive do not receive the benefits that they should. For example, the timber and ecotourism industries in Africa are skyrocketing but the locals do not share in the profits.

Agroforestry

Agroforestry, the agricultural practice of growing trees and shrubs around crops or pastureland, can ameliorate this problem. Agroforestry builds on existing agricultural land already owned by communities to create new forests not owned by the government, thereby circumventing the ownership problem and guaranteeing that profits remain in the community. Agroforestry systems are smaller in scale than typical forests but they still deliver many of the same positive results: they diversify production, restore soil fertility and increase biodiversity.

The benefits of agroforestry extend beyond environmental issues. Agroforestry can reduce global poverty by increasing food resources and security, improving nutrition and increasing profits for farmers.

3 Countries Using Agroforestry

  1. Bolivia uses agroforestry to reduce food insecurity. Bolivia is one of the biggest producers of organic cacao, which despite being edible, is not a major food crop. Cacao is grown mostly wild or in monocultures, though there is a growing shift to agroforestry systems where cacao trees are intercropped with shade trees and other by-crops like bananas and avocados. Over 75% of Bolivian households lack regular access to basic foods. Thanks to agroforestry, 40% of the population who depend on agriculture for their livelihoods can both produce more food and earn more money to buy what they do not grow. The Research Institute of Organic Agriculture (FiBL) found that the return on labor was double for agroforestry systems compared to monocultures even though the cacao yields were 40% higher in the monocultures. The revenue difference came from the sale of the by-crops, which offset the lower cacao yield. The by-crops helped farmers earn a profit but also represented a food source for the communities.

  2. Burkina Faso uses agroforestry as a means of women’s empowerment. The U.N. Development Program estimates that an average of three million African women work directly or indirectly with shea butter. Women have historically played an important role in the extraction of shea butter but they have not always been compensated for their work, even as the industry and profits grew. Agroforestry allows for more community involvement in farming, which in turn opens up opportunities for women. NGOs like CECI and WUSC help to train women in shea harvesting as part of the Uniterra project, which aims to get women involved in entrepreneurial ventures such as developing their own shea butter businesses for international exports. As a result of agroforestry, more women are empowered to take themselves out of poverty.

  3. India is a global leader in agroforestry policy. India was the first country to create a national agroforestry policy in 2014 despite existing policies that were unfavorable to agriculture, weak markets and a lack of institutional finance. The country set the ambitious goal of increasing national tree cover to 33% as a way to make agriculture more sustainable while optimizing its productivity. Agroforestry is currently in use on 13.5 million hectares in India but the government hopes to expand it to increase benefits like reducing poverty and malnutrition by tripling crop yields. Already, agroforestry provides 65% of the country’s timber and almost half of its fuelwood. Timber production on tree farms generates 450 employment days per hectare per year, which can reduce rural unemployment, and in turn, rural poverty.

The Potential of Agroforestry in Poverty Reduction

Many other rural communities in Latin America, Sub-Saharan Africa and Southeast Asia have relied on agroforestry throughout history, with and without government backing. As a whole, agroforestry is underused in the fight against global poverty. Nations with large agricultural sectors need to adopt agroforestry policies and promote the training needed to help farmers implement agroforestry on a large scale. These agroforestry efforts have the potential to significantly contribute to global poverty reduction.

– Brooklyn Quallen
Photo: Flickr

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4 Partners Expanding El Salvador’s Markets

Expanding El Salvador's MarketsFor several years, El Salvador’s farmers have struggled to meet the increased demand of local supermarkets and restaurant chains. Food safety standards have been particularly difficult to meet, especially with a lack of local processing plants. However, these issues are being addressed by Accesso El Salvador’s partnerships with Feed the Future Partnering for Innovation, Super Selectos and Spring Genetics. Together, Accesso and these partner organizations are expanding El Salvador’s markets to improve the quality, quantity and profit of local Salvadoran products.

4 Partners Expanding El Salvador’s Markets

  1. Acceso El Salvador. Accesso originated in 2007 as the Clinton Giustra Enterprise Partnership (CGEP), which specialized in building social businesses and other development programs in Latin America and the Caribbean. In 2020, CGEP became Accesso, an independent entity that focuses more specifically on establishing local agribusinesses to build markets and ease poverty conditions. Acceso has established businesses in El Salvador, Columbia, Alimentos and Haiti. Accesso El Salvador specializes in introducing smallholders to market networks and increasing their profit margins. Three ways it does this is by providing suppliers with sourcing and traceability services, supplying better-quality fertilizers and seed and by offering programs that teach agricultural skills. By improving smallholders’ output and sourcing their products to local businesses, Accesso El Salvador strengthens local markets. Since its establishment in 2014, this agribusiness has assisted more than 1,000 farmers and fishers.
  2. Super Selectos. Super Selectos is an example of a supermarket chain working in alliance with Acceso to expand El Salvador’s markets. The Cultivating Opportunities program, which began in 2012, is a prime example of the economic boost that such a partnership creates. In 2019 alone, Super Selectos purchased $11 million worth of products from more than 2,500 local smallholders. This marks a 50% increase in the supermarket chain’s local sourcing. Another aspect of the program is technical training. This, combined with the increased demand, allows farmers to dramatically diversify their crops and implement profitable planting rotations.
  3. Feed the Future Partnering for Innovation. In 2019, Accesso El Salvador partnered with Feed the Future Partnering for Innovation to expand Accesso’s agricultural programs and processing services, with the goal of adding 150 new farmers to Accesso’s network. A notable breakthrough was their joint project to establish the first vegetable processing facility in El Salvador for smallholders to meet the quality standards of major local supermarkets and restaurants. This not only secured a reliable market for farmers as well as suppliers for food chains but also increased the variety of crops that farmers can produce and the profit that follows such diversity. The new jobs that the plant created especially benefited women, allowing many to involve themselves in the agricultural community for the first time. Despite COVID-19’s impact in 2020, the partnership between Feed the Future and Acceso remained prolific, selling more than a million pounds of produce even in a time of restricted supply lines.
  4. Spring Genetics. Growing demand for high-quality tilapia spurred a 2019 partnership between Acceso and Spring Genetics, a world-recognized tilapia breeder that specializes in introducing beneficial methods and technologies to small-scale fisheries. Previously, El Salvador’s smallholder fisheries lost more than 75% of their final product value due to inefficient operations. Spring Genetics’ advanced technology and the introduction of its genetically-superior tilapia strain, promises a dramatic increase in these smallholders’ fortunes. Accesso holds up its end of the bargain by providing sole distribution services and making plans for a new fish processing plant. As tilapia makes up the majority of El Salvador’s aquaculture products, this partnership should prove lucrative for all involved.

Partnerships Benefit All

Each of these partnerships demonstrates the immense impact that can be made through economic collaboration. Simply providing local smallholders with reliable market networks not only meets the demands of local businesses but also dramatically improves the opportunities for Salvadorans to pull themselves out of poverty. And the benefits are not one-sided. Supermarket chains like Super Selectos also profit from local sourcing. Even internationally-acclaimed companies like Spring Genetics, with its ties to the United States and Latin America, can benefit from expanding El Salvador’s markets.

– Andria Pressel
Photo: Flickr

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3 Ways Kenya Works to Drop its Poverty Rates

drop its poverty ratesMany countries in sub-Saharan Africa have found the majority of their populations living below the poverty line. With many efforts to eliminate poverty in these countries, there are visible and dramatic changes in the lifestyle and the overall economies of many African nations. The most notable changes have come from Kenya, showing some great economic advances between the years 2005 and 2015. Taking a look at the numbers, in 2005, 43.6% of Kenya’s population was living below the poverty line, earning less than $1.09 per day. Then, 10 years later, in the year 2015, Kenyans saw a dramatic change in their economy, with Kenya dropping its poverty rate to 35.6% and seeing a continuous downward trend. Kenya’s significant socioeconomic improvement prompts many to look closely at how Kenya works to drop its poverty rates. Here are three ways in which Kenya is able to drop its poverty rates.

3 Ways Kenya Works to Drop its Poverty Rates

  1. Education. By improving the education system and focusing on its younger population, Kenya is creating opportunities for the youth and the country to prosper. Through the use of newer classroom technology and better resources, it has become evident that Kenyan youth are coming into the world more prepared to work and increase economic growth. By giving younger people the opportunity to build their knowledge, Kenya is dropping its poverty rate. Because the economy grows from the increase in educated people, poverty decreases as a result.
  2. Reducing Poverty in Rural Areas. Rural regions in Kenya face the highest poverty rates. As such, in order to address the issue at hand, Kenya offered more economic opportunities in rural areas. As written on the World Bank Blog by Utz Pape and Carolina Mejia-mantilla, “this was possible because of the increasing importance of non-agricultural income (particularly commerce) to supplement agricultural income for rural households, which has been aided by the expansion of mobile money and the telecommunication revolution.” This explains one of the ways economic growth ignited in Kenya’s rural areas.
  3. Construction and Infrastructure. Building up communities has become one of Kenya’s main methods of alleviating poverty. Partaking in construction and building infrastructure has become one of the most booming businesses in the country, overall helping the economy and allowing for newer and safer residential areas to arise all around the country. According to the Privacy Shield, the construction industry has helped Kenya tremendously in creating jobs and a safer living environment. Along with that, Kenya has been able to strike up deals with outside countries, including the United States, thanks to the progress made within the construction industry. As a result of the attention on its booming industry, Kenya is able to drop its poverty rates.

Looking Forward

Although Kenya is making great advancements in alleviating poverty, there is still room for progress. To completely eradicate poverty in Kenya and support the country’s efforts to drop its poverty rates, the international community and humanitarian organizations must continue to donate and support Kenya’s poverty alleviation efforts. One of the ways the international community can help is by volunteering. Through the Go Overseas program, one can volunteer and take a trip to Kenya to help push forward more advancements toward a less impoverished future for the country.

– Sophia Cloonan 
Photo: Flickr

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The Big Lift: Explaining the Massive Global Reduction in Poverty Since 1990

Explaining the Massive Global Reduction in Poverty Since 1990From massive technological improvements to the ever-growing global communications network, world progress has proved exponential in the past 30 years. One such area of improvement is the global poverty crisis. While we advocate for further intervention within affected communities, it’s appropriate to step back occasionally and admire some victories made to this point. Since 1990, the statistics for poverty have plummeted. The extreme poverty rate globally fell from 35% to 11%. This means that 1.1 billion people are now living off of more per day than in the past. No individual body or organization can earn full credit for this global reduction in poverty; the effort is a result of dedication and persistence among a plethora of governments, groups and interested parties.

What Caused the “Lift?”

While the causes for the widespread poverty alleviation are varied, there are some programs that are generally implemented by governments (both locally and internationally) or even non-governmental organizations that work effectively to reduce poverty. These programs include microfinance, employment guaranteed schemes and property rights, among others.

NGOs are myriad and diverse. Some work directly in communities while others advocate for government assistance with these humanitarian issues. Two different but equally important contributors to this cause are Global Citizen and Oxfam International.

What these Groups Do

Oxfam International is an organization dedicated to creating change within local communities. Initially a combination of multiple independent NGOs, Oxfam has had enormous success globally since its inception, assisting local communities suffering from famine, disease and even sanitation struggles. Currently, its attention is focused on the refugee crisis in Bangladesh.

Global Citizen is a unique non-profit focused on educating people about global issues regarding education, sanitation, food availability and social awareness. The website has short quizzes, “actions” and other available resources for people to interact with. All of these resources serve a purpose, whether it be education, advocacy or simply direct fundraising. In turn, the person earns “points,” and these points can go toward raffles and gift opportunities. The website rewards initiative on the part of the reader, making poverty education interesting.

Together, these two groups have advocated and assisted vulnerable groups in impoverished countries. The success of these groups adds to the general trend in lower poverty rates worldwide, and many different organizations spanning every continent deserve praise for the improved global living conditions we’ve seen since 1990. The global reduction in poverty requires unification, and with plenty of different groups focused on different tasks, the success is apparent.

Room for Progress

Despite the success to date, the opportunities to improve globally still exist. Regarding the aforementioned decrease in extreme poverty, 11% of the globe is still around 800 million impoverished people, and with modern resources, experts think the battle could be more efficient. As such, it’s important to look at the global reduction in poverty through these lenses: if foreign governments and organizations become content with the work done to this point, public interest in the fight would surely cease. The fight against poverty only persists as long as the world cares about it and the global community continues to contribute.

– Joe Clark
Photo: Flickr

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Why Women are More Likely to Live in Poverty

Women Are More LikelyGlobally, women are faced with the invisible burdens of gender inequality which are entrenched deeply within institutional structures and communities as a whole. These prejudices may limit a woman’s access to higher employment and assistance programs, ultimately leading to higher rates of poverty, especially among women of color. As of 2018, the poverty rate for women was 12.9% compared to the 10.6% rate among men. There are several reasons why women are more likely to live in poverty.

Educational Inequalities

In many developing countries, women are more likely to be denied an education, as nearly 25% of all girls have not completed primary school education and two-thirds of women make up the world’s illiteracy rate. In Somalia, for example, only 7% of girls are enrolled in primary school. The lack of education among women may result in higher pregnancy and poverty rates. According to the United Nations Girls’ Education Initiative, a girl’s education is a driving force in their economic well-being. Somalia suffers from one of the world’s worst educational systems and is one of the poorest countries as well, having a poverty rate of 73%. With education, females can increase their access to higher-paying jobs, and thus, benefit the family’s income., which results in a positive cycle for generations, bettering the economy overall.

Women Are Paid Less

Despite having the same qualifications and working the same hours, women are more likely to get paid less than men. Worldwide, women earn nearly 20% less than men. These variances within wages affect women in low-paying jobs and poorer countries dramatically. Closing the gender wage gap can result in overall equal income distribution. In the United States alone, closing the wage gap would mean that half the poverty rate of working women and their families would be cut.

Period Poverty

Around the world, many females may suffer from period poverty: inadequate access to hygienic menstrual products and menstrual education. The lack of education is related to the stigma periods carry. Periods have been associated with immense shame for a long time and this stigma is carried throughout communities, deeply limiting girls’ opportunities. Globally, periods are the reason why girls are absent from school at a disproportionate rate, as two out of three girls in developing countries are skipping school during their period. In India, 23 million menstruating girls drop out of school annually because of a shortage in hygienic wash facilities and products. Without an education, females are less likely to obtain a high-paying job and escape poverty.

Domestic Violence and Sexual Exploitation

One in three females globally fall victim to some form of domestic or sexual violence in their lifetime. Girls and women who grow up in poverty are also at an increased risk of experiencing such crimes. Victims of domestic or sexual violence can be impacted through the degradation of their physical or mental health, loss of employment or are ultimately driven into homelessness. Globally, females lose out on nearly eight million days of employment every year as a direct result of violent acts committed against them. According to a survey by the U.S. Conference of Mayors, domestic violence was the root cause of women becoming homeless in half of all the cities surveyed.

Pregnancy

Economically, females are potentially burdened with the costs of pregnancy, including the additional fees of caring for a child, more significantly than men. Custodial mothers are twice as likely to be poor compared to custodial fathers. Further, unplanned pregnancies can be detrimental to a woman’s income as being unable to work immediately after giving birth means no pay, especially in the informal working sector. In the developing world, nearly 12 million girls aged 15-19 give birth each year, which often results in the end of the girls’ education and the beginning of child marriage. Children who are born from early pregnancies or marriages more often than not enter the same cycle of poverty and no education.

Organizations for Female Empowerment

Malala Yousafzai started the Malala Fund after members of the Pakistani Taliban shot her for advocating the right for girls to be educated. Since then, Malala has built her project into a global initiative that furthers the goal of providing free quality education to young girls in developing countries.

The Orchid Project is a global initiative to end female genital mutilation (FGM). The Orchid Project functions as a platform that raises awareness of the areas where FGM is most prevalent and advocates against the practice. The Orchid Project has brought together more than 193 countries with the collective goal of abolishing FGC by 2030.

Women for Women is an NGO that works to aid those who are in hostile conflict zones and are the victims of collateral damage. Women for Women helps to uplift these victims of violence by providing them with tools, support and education so that they may earn a living and remain stable through the direst of circumstances. Women for Women has helped more than half a million women in countries that have been directly impacted by war and conflicts.

Empowering Women Means Reducing Global Poverty

Females in developing countries experience complexities that restrict their development and progression. Organizations are helping to raise awareness of these complexities and aid women in need. Since women are more likely to experience inequalities that push them into poverty, empowering women ultimately means alleviating global poverty.

– Maya Falach
Photo: Flickr

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Aceli Africa: Strengthening African Agribusinesses

African AgribusinessesOn November 30, 2020, USAID announced a joint operation with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute $30 million to Aceli Africa to help bridge the financing gap experienced by many African agribusinesses. The grant is estimated to have a tremendous impact and will unlock $700 million in financing for up to 750 African agribusinesses in Tanzania, Kenya, Rwanda and Uganda.

Agri-SMEs Lack Financing

Much of Aceli Africa’s work focuses on a data-driven approach to incentivizing financial institutions to provide loans for small and medium-sized African agribusinesses or “agri-SMEs”, as Aceli Africa calls them.

According to Aceli Africa’s research, agri-SMEs represent a golden opportunity to solve hunger and poverty throughout Africa and help fulfill key U.N. Sustainable Development Goals (SDGs), such as gender equality and climate action.

This is because smallholder farmers consist of both men and women and provide direct access to food sources that are responsibly raised in accordance with the needs of the local environment. Furthermore, the expansion of the agricultural sector in Africa is two to three times more effective in eliminating poverty than growth in any other sector.

Despite the great potential of African smallholder farms, banks are largely unwilling to loan them much-needed financing to power additional growth. Banks do not have the risk appetite for small farms in Africa due to price volatility, the seasonality of farming, pest invasions and a weak regulatory environment.

The result of this is an investment shortfall of $65 billion per year for agri-SMEs in Africa. Initiatives focused on microfinancing do not provide enough financial injection for agri-SMEs, which are larger than the microenterprises that are the usual recipients of microloans. Agri-SMEs are thus left out of financing. However, the work of Aceli Africa aims to change these circumstances.

Aceli Africa Incentivizes Banks to Loan to Agri-SMEs

To bridge this gap in financing, Aceli Africa partners with numerous organizations such as USAID, the IKEA Foundation, Feed the Future and the International Growth Center to incentivize banks to loan and provide technical assistance to agri-SMEs.

This is where the aforementioned $30 million contribution has the potential to positively impact agriculture and African agribusinesses. One of the incentive programs that Aceli Africa employs is to cover the losses of the first loan that a financial institution gives to an African agri-SME.

This works by depositing 2-8% of the loan’s value in a reserve account that the lender can access when losses are experienced. This boosts risk appetite among lenders and makes banks and other institutions more willing to invest in agri-SMEs in Africa.

Aceli Africa also provides technical assistance for financial management for African agri-SMEs through online tools and other in-person approaches to help smallholder farmers optimize growth using the loans they receive. These approaches have the potential to put U.S. taxpayer dollars to effective use by addressing poverty and hunger abroad.

United States Outreach is Key in Combatting Poverty

USAID’s decision to partner with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute to the work of Aceli Africa symbolizes the value and power of international partnership in the fight against global poverty. When the United States decides to lead on an issue, the rest of the world follows. Key international partnerships are essential for the United States to take the lead and garner international support to address key global issues.

– John Andrikos
Photo: Flickr

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Making a Difference: 3 Philanthropic Organizations in Greece

Philanthropic Organizations in Greece Due to income inequalities and the lingering effects of the 2008 global financial crisis, many Greeks continue to face threats of poverty. Of note, insufficient incomes caused 22.2% of the population to suffer severe material deprivation in 2015. While housing, food, education, training, health care and legal aid are difficult to access for those living in poverty,  philanthropic organizations in Greece are making a difference across the board.

3 Philanthropic Organizations in Greece

  1. Hellenic Hope. Child poverty in Greece impacts more than 686,000 children. Children are at risk of limited accessibility to nutritious diets and living in inadequate conditions to meet their developmental needs. Hellenic Hope is an organization that provides support to children living in poverty in Greece. Hellenic Hope focuses on raising funds for organizations to fight the child poverty crisis in Greece while increasing awareness about child poverty and encouraging collaborative efforts internationally. Since its establishment in 2012, Hellenic Hope has partnered with various organizations in Greece to provide food and clothing as well as emotional and educational resources. In 2015, Hellenic Hope participated in SOS-Eliza VIMA/STEP program to protect 95 vulnerable children. SOS-Eliza focuses on child abuse prevention and works with vulnerable families facing unemployment, poverty and social isolation.
  2. METAdrasi. METAdrasi is a grassroots organization established in 2009 that strives to eliminate human oppression. Founder Lora Pappa developed this organization to protect the rights of people displaced by war or prosecution. In 2019, METAdrasi received the Conrad N. Hilton Humanitarian Prize. The organization received a $2 million award for its work with refugees, migrants and unaccompanied children in Greece. The funding will allow the group to strengthen its advocacy efforts in Greece. Through the efforts of social workers and interpreters, METAdrasi has rescued refugee children from detention centers, conditions of homelessness and other unsafe environments on the island. METAdrasi has been able to help approximately 11,000 children in 4,000 escorting missions. In addition to this, METAdrasi continues to expand its services through innovative approaches that allow the organization to provide legal support, certification of victims of torture, education and protection for unaccompanied children.
  3. Kivotos tou Kosmou – Ark of the World. This is a philanthropic institution in Greece founded by Father Antonios Papnikolaou. The organization provides services for children and young mothers who are in need or in danger. Kivotos has been able to care for more than 220 children who have separated from their parents and support 150 single-parent families. With approximately 150 apartments, Kivotos provides housing so that these families can remain together. The organization also provides education, training and access to scholarships. Kivotos has helped teenage mothers by teaching them parenting skills and offering mental health care services and therapy.

Looking Ahead

While rebuilding from the financial collapse has been slow, thoughts of a prospering economy remain. Still, philanthropic organizations in Greece are finding ways to make a difference in many lives today. The Organization for Economic Co-operation and Development urges government reform to address poverty and inequality in Greece with hopes of economic recovery.

– Brandi Hale
Photo: Flickr

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Understanding Poverty in Belarus

Poverty in Belarus
The Eastern European post-Soviet state of Belarus has had a tumultuous, bumpy ride in the last 30 years. A long-treasured satellite of the Soviet Union for almost the entirety of the 20th century forced the country to adopt massive changes when it broke off from the Soviet Union when it collapsed in 1991. Since then, one man has ruled this small country with an iron grip.

Alexander Lukashenko has been a dictator-like figure masquerading in a phony democratic society. He has been drawing social, economic and political policies in Belarus for the last three decades since the fall of the Soviet Union. Though he did reduce poverty according to official government statistics, there has been a high fluctuation in actual figures related to the poverty rate in Belarus since he took office in the early 1990s. Understanding the underlying causes and remedies of this poverty in Belarus is a complex affair, however, it is clear that certain political, economic and social actions have impacted the country in many ways.

Poverty in Belarus

Being one of the poorest countries in the geographical limits of Europe, the inability to properly take care of its citizens hampered Belarus. Showing its signs of instability, the Belarusian system creaked heavily during a brief two-year recession during 2015-2016. Within a matter of months, the share of the population living below the poverty line increased by three percentage points while in rural areas that number doubled. This fluctuation shows an economy and political system that is not yet resilient to normal market pressures. Additionally, according to a UNDP report, Belarus ranked in the bottom third in countries on the metric “socioeconomic sustainability” which predicts the longer-term impact of economic growth factors and the sustainability of economic output.

Compounding this dilemma, a comprehensive study concluded that much of Belarus’ economic growth in the past 20 years is quite vulnerable, citing both demographic concerns about aging and continuous reforms in the utility sector, which employs much of the workforce of the country. The myriad of challenges facing Belarus is not just abstract downstream economic impacts. President Alexander Lukashenko hampers the prosperity of his own citizenry in many ways through his brash leading style and the specific intricate political decisions that impact his citizens.

Mitchell Orenstein’s Views

According to the University of Pennsylvania professor of Eastern European Studies, Mitchell Orenstein, the Lukashenko regime “is certainly repressive. His regime regularly beats peaceful protesters and threatens and imprisons and tortures opposition presidential candidates.” This type of social order is not conducive to finding the best public policy that helps the most people, but rather a closed-off system that is resistant to change–which is important when advancing important economic interests that lift people out of poverty in Belarus.

Orenstein also noted that many Belurrusians tolerate much of this behavior, as President Lukashenko argues, “Belarus must have a powerful dictator to prevent invasion from outside forces, noting Belarus’s World War II history, and Russia’s desire to undermine Belarusian sovereignty. He also blames NATO for seeking to subdue Belarus.” This provides an underpinning of legitimacy that was successful at holding off dissatisfaction among his people, but as poverty trends stagnate, that dissatisfaction may inevitably boil over.

Improvements in Belarus

Upon examining the raw data, one might come to the conclusion that Belarus has been dealing with its poverty problem quite well since Lukashenko took office. In the year 2000, 41.9% of the population was below the national poverty line while in 2013 that number astoundingly fell 36.2 percentage points to 5.7% below the poverty line in the country. This was due to mass mobilization of the public sector for manufacturing–mainly to fuel the growing Russian economy at the time. Moreover, massive investments from multilateral organizations, such as the World Bank, spurred the production of critical infrastructure all around the country and international investment.

The World Bank’s Efforts

With the 90 million Euro investment from the World Bank in 2019, coupled with numerous other investments like the UNDP project, Belarus is making extraordinary strides in not only fighting poverty but also developing and cultivating the systems that attract foreign investment. Moreover, innovative NGOs are tackling every angle of the poverty cycle in the country. Organizations like Ponimanie are fighting to protect children’s rights and ensure positive outcomes for vulnerable groups of children.

This type of organization is crucial for breaking the cycle of poverty and providing opportunities to succeed in disadvantaged communities in the country. In addition, poverty in Belarus has received aid from the fact that Belarus’ main trading partners–like Russia–have experienced an economic boom as well. This reaction sets a favorable sequence into motion that spurs production in its energy and agricultural sectors lifting people out of poverty.

Looking Ahead

Importantly, while Belarus has made great strides in its ability to fight poverty (as shown by the successful years of positive economic policy and results), many of the trends have leveled off during recent times. Life expectancy, education and GNI per capita all increased dramatically over the course of the first years of the 21st century while then plateauing into the 2010s. This certainly shows progress but also highlights the inability of the Belarussian system to maintain and replicate the growth and prosperity that the country experienced 15 years ago.

While poverty in Belarus is most certainly an ongoing threat, understanding some of the more intricate causes of instability and continued poverty are important for determining the outcome of millions in this Eastern European country in the future.

– Zak Schneider
Photo: Flickr

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Trickle Up’s Approach to Poverty Reduction

Approach to Poverty Reduction
Extreme poverty originates in already disadvantaged groups, particularly women, people with disabilities and indigenous peoples. The impact of poverty disproportionately affects communities that already face challenges dependent upon their gender, ability or cultural background. For those who belong to more than one of these identities, poverty can seem inescapable without direct intervention and change within the systems that limit their ability to self-sustain. Trickle Up is one organization that has provided an intersectional approach to poverty reduction by engaging with these vulnerable groups since 1979 and providing women in impoverished areas the financial resources to build up themselves and their communities.

Identity as a Predictor for Extreme Poverty

Women are more likely than men to live in poverty. Many women face the consequences of gender inequalities as they receive 24% less pay than men worldwide and face job insecurity through the informal economy. Moreover, they spend much of their time invested in unpaid labor, such as caregiving.

The Borgen Project spoke with Trickle Up’s Vice President of Programs, Barbara Jackson, who revealed the importance of targeting the obstacles that hold back women especially from emerging out of extreme poverty. She recognized that impoverished women face stigmatization even in their own communities and experience marginalization through the lack of services available to them. Disparities emerge when “men and boys are often prioritized for schooling,” leaving some women without literacy skills. As a result, women frequently must focus on balancing caregiving and wage-earning instead.

“Women are often not included in decision-making processes because they are not considered the voice of the family,” Jackson went on. They are instead “stigmatized for something that is not of their own volition.” Targeting unjust power dynamics that limit women’s ability to pull themselves out of extreme poverty is a crucial approach to poverty reduction.

The current global data demonstrates that poverty is an intersectional problem that harms those who fall under more than one disadvantaged category. Women who come from indigenous backgrounds face additional challenges. Indigenous peoples make up nearly 15% of the poorest people globally. Being both a woman and an indigenous person couples with the highest malnutrition and poverty rates out of all social groups in Latin America and the Caribbean. For this reason, Trickle Up has built a program to support and empower Guatemalan indigenous women.

Trickle Up’s Graduation Approach

About 767 million people in the world live in extreme poverty, surviving on less than $1.90 per day. Microcredit services, which involve providing small loans to individuals in developing nations, make up important support for millions of the impoverished each year. However, these services frequently overlook the ultra-poor due to the complexity of their challenges.

Referring to the ultra-poor, Jackson emphasized that “it is critical that they learn basic financial skills, learn how to save, gain greater financial stability through a diversity of income-generating activities, and develop the self-confidence they need to persevere and succeed.” Because of the economic and social disadvantages presented to them simply because of their gender, women are the primary recipients of Trickle Up’s specialized savings and social support services.

Of the many challenges of breaking the cycle of poverty, lack of services and geographic and social isolation are most prominent for the focus of Trickle Up’s graduation approach.

How Trickle Up’s Graduation Approach Works

In place of giving out microcredit, Trickle Up intends for its five-step Graduation Approach to help participants of the program “graduate out of poverty.” Each program undergoes implementation in a community and it selects the participants it deems most vulnerable. Trickle Up later approves these participants.

The selected women then receive consumption support, which is the provision of a small stipend to ensure that they may stabilize their families prior to moving forward with developing long-term investments. Trickle Up’s approach to poverty reduction involves giving livelihood coaching in addition to risk-free capital investment. The training allows for women to decide on the activities they can employ to create a sustainable income.

Prior to graduation, it is essential that women have savings and social networks set up. Jackson shared that women in these communities “don’t come together to talk about their problems and talk amongst themselves.” The savings groups provide opportunities for the participants to “sit and work” together in order to build confidence and trust.

The Desde el Poder Local Program

Desde el Poder Local is one of Trickle Up’s current six projects. Located in El Quiché and Alta Verapaz, Guatemala, the project has selected 410 indigenous women between the ages of 15 and 24 to participate over the span of two years so far. This particular program emphasizes reproductive health education and livelihood development.

Women and men receive reproductive health education in the native languages of the targeted communities. The goals of this education initiative include broadening understanding of the implications of early onset pregnancies while also acknowledging the role of parenthood. Jackson noted that there has been a decrease in pregnancies in the last two years, with no pregnancies occurring for women under 18 in El Quiche and Alta Verapaz. Trickle Up’s inclusion of male family members in both reproductive health and financial literacy programs aims to develop a sustainable change in the gender dynamics of the participant’s communities.

As of August 2020, Desde el Poder Local generated 21 savings groups and 77% of participants increased their annual income during the program. Jackson pointed out, “A dollar a week they’re saving. That’s the first time they’re making their own money.” With the support of their families, communities, and municipal authorities, these women obtain the support they need to continue generating a sustainable income once the project concludes.

Maintaining Support During COVID-19

The traditional approach that Trickle Up has undergone disruption during the coronavirus pandemic. Women who work as local artisans have not been able to travel or access markets in order to sell their products. Fortunately, Jackson assured that Trickle Up staff members have continued to work alongside government staff or field extension agents, which are often women. Information on sanitation hygiene and infection prevention has undergone dissemination through cell phones and word-of-mouth.

Trickle Up has demonstrated that an intersectional approach is essential for poverty reduction. Targeting social problems that exacerbate the effects of extreme poverty, including gender inequality and racial discrimination, allows for growth within the target communities and in society as a whole.

– Ilana Issula
Photo: Flickr

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Innovations in Poverty Eradication in Ethiopia

innovations in poverty eradication in ethiopiaEthiopia, officially known as the Federal Democratic Republic of Ethiopia, is located in East Africa. It has historically struggled to keep a majority of its population out of extreme poverty. In 1995, 71.1% of Ethiopia’s population lived on less than $1.90 a day. However, thanks to innovations in poverty eradication in Ethiopia, this figure has decreased to 30.8% as of 2015. The top innovations in poverty eradication in Ethiopia include economic development plans and the expansion of social services. Foreign aid from allied nations, like the U.S., has helped make these innovations in poverty eradication in Ethiopia possible.

Economic Development Plans

The main mechanism for successfully reducing poverty in Ethiopia is its chain of innovative economic development plans. Beginning with the Plan for Accelerated and Sustained Development to End Poverty (PASDEP) in 2005, Ethiopia has implemented a series of these plans. Each last five years in order to adapt to the new market. In 2010, the First Growth and Transformation Plan (GTP I) replaced the PASDEP. The Second Growth and Transformation Plan (GTP II) succeeded this plan in 2015.

The GTP II remains in place but is nearing the end of its five-year installment. The plan doubled down on the previous strategies’ prioritization of human resource and infrastructure development. As such, it has sustained economic growth in Ethiopia. This was most evident in Ethiopia’s huge spending increase in the education sector. Roughly one quarter of the nation’s total expenditures go toward education and training. Importantly, this far surpasses the allocated budget in every other nation in the region. Access to “universal primary education” also rose exponentially—an important milestone for the country. In addition, the plan called for large investments in roads, railways, power and agriculture.

The plan also focused on industrial development, strengthening the manufacturing industry to increase economic growth. Analyst for the Development Initiatives, Peace Nganwa, writes that “interventions that increase economic growth also contribute directly to poverty reduction.” Since the GTP II’s implementation, Ethiopia’s GDP has grown substantially. The total GDP grew from $64.6 billion in 2015 to $96.1 billion as of 2019, a whopping 48.8% increase.

Expansion of Social Services

Ethiopia’s focus on improved social services has dramatically increased the welfare of its citizens. Besides education, health, transportation, energy infrastructure and water and sanitation have expanded greatly. Health coverage in particular has been a priority for Ethiopia in the past few years. Substantial increases to healthcare funding brought Ethiopia’s access to health coverage to 98% in 2018. This was an important mark to hit, especially before the coronavirus pandemic reached the country.

Furthermore, water scarcity has historically been problematic for Ethiopia. The nation accounts for 7.5% of the global water crisis, affecting more than 62 million citizens. However, Ethiopia’s focus on the issue has helped reduce it significantly. This work has brought the country’s access to potable water to 66%. All of these social service expansions contributed to increasing the overall life expectancy of Ethiopians. Specifically, it now rests at 64.6 years.

International Assistance

Foreign development assistance made these innovations in poverty eradication in Ethiopia possible. In 2010, for instance, the $3.5 billion Ethiopia received in total foreign donations covered more than half of its spending. The largest contributor to this was the United States, giving $875 million.

As the nation plans another five years of poverty eradication measures, it faces one of the hardest challenges the world has come by: COVID-19. Ethiopia has proven that it can strategize to eradicate poverty within its borders. However, it needs assistance from foreign nations to make it truly achievable, now more than ever in the face of a pandemic.

– Asa Scott
Photo: Wikimedia