Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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BACE API: Identity Verification Helps Poverty in Africa

BACE API:Charlette N’Guessan, a 26-year-old Ivorian and CEO of the BACE Group based in Ghana, is the first woman to win the United Kingdom’s Royal Academy of Engineering’s Africa Prize for Engineering Innovation. N’Guessan and her team earned £25,000 ($32,000) with the 2020 award for their BACE API digital verification software.

BACE API Facial Recognition Software

BACE API verifies identities remotely and instantaneously using artificial intelligence (AI) and facial recognition by matching the live photo of the user to the image on their official documents. This use of live images and video rather than still images is unique to BACE API and improves the success rate in matching faces and verifying that the images are of real people rather than preexisting photos. Judges for the Africa Prize stated that facial recognition software in Africa is becoming increasingly important and BACE API is just the beginning.

Issues in Identity Verification for Africans

Most facial recognition tools on the market use white faces in their dataset, which leads to higher rates of misidentification of black faces. BACE API, however, was designed with the express intention of improving the design of facial recognition software in Africa. The algorithm of BACE API is designed to draw from a more diverse data set to address racial bias and bolster its accuracy.

Moreover, N’Guessan stated that she created the BACE API tool to address high rates of identity fraud and cybercrime in Ghanian banks. Financial institutions in Ghana spend approximately $400 million per year identifying their users. Not only is BACE API more functionally accurate but it is also convenient as no special hardware is needed and the software can be combined with existing identification apps. So far, the software is being used in two financial institutions for identity verification and one event platform to manage attendee registration.

Identity Verification and Poverty

Facial recognition software in Africa has recently become an important tool to address poverty. There are approximately 1.1 billion people worldwide who lack an official ID, 500 million of whom live in sub-Saharan Africa and 40% of whom are under the age of 18. Women are disproportionately more likely to lack identity documents compared to men. The population of people without an official ID are unable to access basic socio-economic and legal rights, including healthcare, education, voting and legal protection in court. Moreover, people without identity documents are barred from entering the formal economy, for example, starting a business or gaining official employment. The widespread lack of official identification is largely due to the difficulties, inconveniences and expense of registering for an ID, including the common requirement for multiple forms of ID for different functions.

Digital technology, however, is leading the charge to address unequal access to ID’s and basic services, and BACE API is a unique solution to this issue by serving as a one-stop-shop for remote identification. After verifying their identity through the program, users gain access to necessary financial services, education and voting rights.

BACE API’s Benefits During COVID-19

During COVID-19, BACE API is a viable alternative to the in-person verification processes used by most such as fingerprints or personal appearances. Companies and organizations can now remotely authenticate and onboard people without ever meeting them.

Moreover, the demand for healthcare and welfare programs has skyrocketed in the wake of the widespread economic downturn. With BACE API, governments are relieved of the burden of identity verification and can operate more efficiently to provide essential services to people struggling during COVID-19.

– Neval Mulaomerovic
Photo: Flickr

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Efforts to Reduce Pollution in the Ganges River

Ganges RiverMore individuals depend on the Ganges River in India than there are people in the United States. More than 400 million people live at the basin of the Ganges, making it one of the most important natural water resources in the world. A holy river in the Hindu faith, the Ganges River (or Ganga) is used to bathe, cook, wash clothes, conduct funerals and more. Entire businesses along the basin depend on the river, adding an economic dependence to it as well. Due to this immense usage, pollution has run rampant. The Ganga Action Parivar estimates that “2.9 billion liters of wastewater from sewage, domestic and industrial sources are dumped” in the river every single day. Pollution reduction in the river is a top priority to prevent hundreds of millions of Indians from facing water insecurity.

The World Bank Assists

In 2011, the World Bank targeted the Ganges River pollution issues by launching the National Ganga River Basin Project (or NGRBP). A $1 billion initiative, the NGRBP looked to create bank investments in the water sanitation department and develop better waste management control in India. While this did prove to be a step in the right direction, the Ganges still saw a rise in pollution. India’s inability to properly dispose of waste outpaced the World Bank’s project. After nine years, the World Bank looked to bolster its contribution to the fight to save the Ganges as more and more Indians were becoming sick. In June 2020, the Second Ganga River Basin Project received approval from World Bank directors despite the bank focusing on COVID-19, proving how dire the situation at the basin truly is. An 18-year commitment, this second NGRBP adds another $380 million to clean up the Ganges until 2038.

Ganga Action Parivar’s Impact

Along with international help from the World Bank, India also made pollution control a national issue. An array of agencies have come about in India centered around the purification of the Ganges. For over a decade, the Ganga Action Parivar (GAP) has taken a diplomatic approach to fight water pollution. Through communication with government officials, media outlets and fundraising, the GAP looks to bring awareness to the issue and demand action from within India. In 2016, the GAP launched the National Ganga Rights Act and began asking for support for it. The act detailed how there are both natural environmental and human rights on the line with the continued pollution of the Ganges River. More than just a body of water, the Ganges is an epicenter of religion, prosperity and life. Creating a natural rights act helps to ensure that action will mobilize to protect the water resource and that is exactly what the GAP has set out to do.

The Year 2020 and Beyond

The year 2020 has been a promising year for pollution reduction in the Ganges River. The World Bank launched and financed its second project centered around cleaning the water back in June 2020. New research suggests that there has also been a natural cleansing that has taken place over the past few months. Since COVID-19 forced India to shut down, the Ganges’ usage has dropped. In a video released by BBC News, just a mere 10% drop in usage throughout the pandemic has led to significant improvement in the sanitation of the Ganges. For years now, India’s government has been trying to find ways to heal the Ganges. While India and the world fight the COVID-19 virus, the Ganges River is healing. Once the lockdown ends, the work of the World Bank and GAP will be vital to keep the momentum going. If pollution rates continue to climb, India will have a water crisis on its hands. Sanitizing and protecting the Ganges is instrumental in helping India reduce its poverty rates and preserving a crucial water resource.

– Zachary Hardenstine
Photo: Flickr

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Saldo.mx: Blockchain Startup in Mexico

Blockchain Startup in MexicoAs internet connectivity expands around the globe so do the benefits of blockchain technology and its potential to better the lives of those living in poverty. In Mexico, accessible financial services and insurance programs are vital to the improvement of the quality of life of Mexicans living below the poverty line. Saldo.mx, a blockchain startup in Mexico, helps facilitate this access.

Blockchain Startup in Mexico

A blockchain startup in Mexico has utilized the security of blockchain technology to meet the needs of Mexicans living in poverty. Saldo.mx offers Mexicans a secure and easy-to-use platform on which they can pay their bills using remittance money from abroad.

This is a significant development in the Mexican fintech market as Mexico receives billions of dollars in remittances from the United States each year, with $10.6 billion reaching Mexico in the third quarter of 2020 alone.

Especially during a time of economic crisis caused by the COVID-19 pandemic, the ability to securely receive timely remittances is crucial for the financial security of Mexicans who rely on remittance payments for their survival.

Saldo’s services have the capacity to reach millions of Mexican customers, as it has been estimated that by the end of 2020, upwards of 81 million Mexicans will have internet access and thus the ability to quickly receive and utilize much-needed cash without having to wait for physical cash to arrive from abroad.

Consuelo: Access to Affordable Insurance Plans

One of Saldo’s newer services is Consuelo, which allows users to find fixed health and life insurance policies. Consuelo uses blockchain technology to connect its users to an insurance plan with a “smart contract,” which eliminates the need for a claim adjuster and gives the users direct access to affordable plans.

By removing a costly middleman and lessening the financial bureaucratic burden on customers, Consuelo gives its users a chance at obtaining health and life insurance and decreases long-term financial insecurity concerns.

Consuelo also helps uninsured Mexicans bypass the bureaucratic messiness of the national public healthcare system, which is supported by numerous uncoordinated social security institutes. This allows for better continuity of care by allowing Mexicans to remain with the same doctor by staying on their plan provided by Consuelo rather than facing the possibility of having to switch to another doctor through the national system after losing their jobs.

The Diverse Applications of Blockchain Technology

Innovation is not confined to affluent areas of developed countries. Especially in the age of the internet, new solutions can be developed and rapidly disseminated from any part of the world and can impact the lives of millions. In Mexico, receiving international transfers of money and gaining access to affordable health and life insurance plans can be difficult for the unbanked and those without stable employment. Startups like Saldo exemplify the potential of internet entrepreneurship and blockchain technology in helping lift the global poor out of poverty.

– John Andrikos
Photo: Flickr

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An Effort for Women’s Economic Empowerment

Women's Economic EmpowermentA staggering 2 billion impoverished people worldwide, particularly women, face financial and economic exclusion. Females are the most impoverished in the world and women earn on average only 60-75% of what men earn. Investing in women’s economic empowerment plays a crucial role in reducing poverty and establishing equality between men and women.

Gender Equality for Global Economic Advancement

The 2017 National Security Strategy states that societies that empower women in their civic and economic lives are more prosperous and peaceful. Studies show that gender equality contributes to advancing economies and sustainable development as well as overall poverty reduction.

CARE defines women’s economic empowerment as the process by which women increase their rights to economic resources and power to make decisions that benefit themselves, their families and their communities. It is the transformative process that helps females move from limited economic power to possessing skills, resources and opportunities to compete equitably in markets and control economic gains. Women’s economic empowerment involves transforming the historically-limiting laws, policies, practices and norms through change and advocacy.

Discrimination and exploitation disproportionately affect women. Women often end up in low-wage jobs and fill very few senior positions. Without secure employment, women lose access to economic assets, such as land and loans, which limits opportunities to participate in economic and social policies. Furthermore, many women are responsible for the majority of housework, which leaves little time to pursue employment or other economic opportunities. On average, women devote between one and three hours more a day to housework than men and two to 10 times the amount of time a day to child, elderly and sick care.

Additionally, laws in many countries determine what jobs women can do or give men the right to prevent their wives from accepting jobs.

Call to Action on Women’s Economic Empowerment

In October 2020, U.S. officials and 31 U.N. Member States virtually signed the Call to Action on Women’s Economic Empowerment, which encourages countries to address legal restrictions regarding women’s economic participation. Predictions are that if an equal number of men and women participate in the global economy, the gross domestic product (GDP) could increase by $12 trillion by 2025.

Improved financial security means women can afford health care, purchase essentials for their children and play a leadership role in their communities. Typically, women who decide where, when and how to spend their money see improvements in their social and economic status. Financially independent women also increase the level of resources devoted to their children.

Girl Power and the Future

There is strong evidence showing positive links between women’s economic empowerment and health outcomes for women and their families. This includes benefits in nutrition, better family planning and decreased maternal and child mortality. Other studies have found that increasing the share of income for women may provide greater investment in children’s education and result in reductions in gender-based violence. Overall, women’s economic empowerment benefits not just women but the entire world.

– Rachel Durling
Photo: Flickr

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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