Information and stories about poverty reduction.

poverty in Bangladesh
About one in four Bangladeshis live in poverty, making poverty in Bangladesh an ongoing fight for the nation. However, there has been significant economic growth and improved education and infrastructure. With international development assistance, poverty in Bangladesh is on a downward trajectory, especially in rural areas. These seven facts about poverty in Bangladesh show the country’s improvements.

 7 Facts About Poverty in Bangladesh

  1. International Assistance. The International Development Association (IDA) has been a large part of Bangladesh’s success in education, health and infrastructure. Funded by member countries, IDA coordinates donor assistance. Additionally, IDA also works to provide development assistance to countries around the world. Bangladesh is one of the largest recipients of IDA funding, with its program totaling $11.3 billion. Multilateral organizations, like the Asian World Bank and the United Nations, have worked with the IDA to lower poverty in Bangladesh.
  2. Economic Growth. Through sustained economic growth in recent years, Bangladesh has made strides in alleviating poverty. Steady growth in its GDP allowed Bangladesh to reach lower-middle-income status in 2015. Bangladesh remains one of the fastest-growing economies among developing nations, and its GDP in 2018 was $274.02 billion, a 9.73% increase from 2017. With these steady increases, the GDP should grow another 8% in 2020.
  3. Education. Bangladesh has seen an increase in education enrollment and more girls are going to school. Enrollment rate at the primary school level increased from 80% in 2000 to above 90% in 2015, and from 45% to 62% at the secondary school level. Bangladesh has also achieved gender equality in education enrollment; it sent almost 6.5 million girls to secondary school in 2015. This makes the nation a frontrunner among developing countries to achieve gender parity in education.
  4. Health. Bangladesh has made important progress in its health indicators over the past few decades. This includes improvements in maternal and child health. There was a 40% reduction in maternal mortality, from 320 deaths per 100,000 live births in 2000 to 194 deaths in 2010. USAID has worked with local groups to provide high-quality reproductive services and bring integrated health care to Bangladeshis as well.
  5. Agricultural Growth. The agriculture sector is essential to Bangladesh, and its growth has been among the highest in the world for the past 25 years. Through IDA, more than 1 million households have modernized food practices and 500,000 households have increased grain reserve. Natural disasters are a primary threat to Bangladesh’s success in agricultural production. IDA is also financing almost $1.5 billion in aid to Bangladesh’s resistance against natural disasters. This leads to further increases in agricultural production and promoting food security.
  6. Sustainable Development Goals. According to the United Nations Development Programme, Bangladesh is making strides in attaining the 17 Sustainable Development Goals (SDGs) to end poverty and improve quality of life. For example, Bangladesh is well on its way towards reaching the access of 100% of households to electricity by 2025, which is SDG 7. Bangladesh has also seen improvements in sanitation and access to clean water, which the SDGs also include. In 2019, 87% of the population had access to clean water and access to sanitation increased by 26%.
  7. Rural Infrastructure: Efforts to alleviate poverty in Bangladesh have occurred in rural areas, and IDA has provided support to build roads and increase access to water in these areas. According to the World Bank, 1.1 million people in rural areas now have access to clean water, and support measures have led to the paving of 800 kilometers of new roads in these areas. This infrastructure allows for easier transportation to school and the creation of jobs for men and women, improving the quality of life in several rural areas.

These seven facts about poverty in Bangladesh show that efforts to alleviate poverty in the country have been remarkably successful in the past few decades. Still, much work remains essential in order to alleviate poverty in urban areas and bring about continued growth in Bangladesh’s economy, infrastructure and access to food security. However, with continued international assistance and Bangladesh’s commitment to reducing poverty, there is hope that Bangladesh will continue to be a global model for poverty reduction.

– Anita Durairaj
Photo: Wikimedia

Poverty in the Maldives
People might know the Maldives for its clean blue waters, luxurious resorts and the millions of tourists that visit the archipelago but may not know that the small island nation continues to tussle for its economy and against poverty. Poverty in the Maldives dates back to the early 1980s when it became part of a list of the 20 poorest countries in the world. The 2004 tsunami further weakened the economy of the island nation, which consists of 1,192 tropical islands. A global financial crisis emerged in 2008, putting the country in a vulnerable position.

Current Scenario

Statistics from the Asian Development Bank state that the GDP in the Maldives rose to $4.51 billion in 2018 from a mere $42.46 million in 1979. Wealth inequality does not persist in the Maldives and poverty rates vary across geographic locations. As the World Bank expected, the GDP growth slowed down from 6.7 percent in 2018 to 5.2 percent in 2019. Poverty in the Maldives is no longer a crisis, but the risks remain high.

Sustainable Development Goals

The country has been victorious in achieving a few of its Sustainable Development Goals (SDGs). Observations have determined that the annual rise in GDP is around 5 percent. The tourism industry, fisheries and other sources have played a significant role in strengthening the economy and employment rate. Half of the economy of the island nation comes from tourism and another 12 percent comes from the fisheries across the islands.

There might be people with very low incomes but there are no urban beggars or slum dwellers, even with an increase in the rural-urban migration rates. Recently, literacy rates in the Maldives have reached around 100 percent. There are no major causes of diseases and infections in the Maldives. The starvation rate is zero as well.

Unemployment

In 2018, the unemployment rate was 6.1 percent, with youth unemployment making up 15.3 percent. More than half of the working strata of people are employees in the tourism sector or fisheries, which often makes them fall sick. About 8.2 percent of the total population falls below the national poverty line.

Life Span

The life spans of citizens have increased considerably thanks to the rapid and drastic expansion in economy and infrastructure. According to the World Bank, the Maldives’ life expectancy in 2018 reached 77.2 years. Meanwhile, life expectancy was only 69.2 years in the year 2000. The increase in life expectancy has been considerable. However, there is a certain limitation to that as well since the island nation has limited infrastructure and resources.

Although the GDP increases every year, this pattern in economic growth is quite irregular. New establishments in the tourism industry and infrastructure should bring the GDP to 5.5 percent in 2020.

There is no denying that the country has made drastic improvements to help the situation of poverty in the Maldives. However, the situation continues to be fragile and vulnerable. If the Maldives continues to grow its tourism industry and infrastructure, it should be able to continue to reduce poverty in the future.

Astha Mamtani
Photo: Flickr

Poverty in EgyptNearly one-third of Egyptians fall below the poverty line, with the unemployment rate trending higher than extremely impoverished countries such as Ghana, Lebanon and Zimbabwe. In 2011, lasting poverty rates and poor living conditions caused Egyptian retaliation against the government. Political instability has complicated Egypt’s foreign partnerships since that time, subsequently affecting all areas of the economy; as a result, foreign investment in the country’s resources has had notable fluctuations. The inconsistency in Egypt’s economy leaves few employment opportunities, especially among younger generations, inevitably affecting rates of poverty in Egypt.

Travel in Egypt

Typically, travelers visiting Egypt receive encouragement to exercise increased caution, per the U.S. Global Health Advisory. The country ranks two out of four on the U.S. Department of State’s safety scale; this rating indicates that the U.S. Department of State has approved travel there although tourists should recognize the possible risks. This system is not solely unique to the United States – many countries have similar regulations. However, due to the global impact of COVID-19, regular travel ratings are momentarily on hold.

Factors responsible for Egypt’s pre-pandemic, level-two status include levels of terrorism and lingering tensions with the U.S. Embassy. This score is an improvement from a travel rating of four in 2011. Egypt received this high rating during a violent national rebellion that broke out against police brutality, the poor economy and religious divides. When a country has a level-four rating, the U.S. Department of State tells Americans not to travel there.

Tourism’s Impact on Egypt’s Economy

In February 2019, research expert Amna Puri-Mirza provided a statistical analysis that demonstrated that a decline in tourism impacted the Egyptian economy. From 2010 to 2011, national profits from the tourist industry dropped 32 percent in reaction to the Egyptian rebellion. In 2015, news of a Russian airline crash that was traveling to Cairo decreased tourism from 14.7 million to 5.4 million people in 2016.

The connection between tourism and poverty in Egypt correlates with the market value of different services and goods that the country produces; profits from tourism hold a large percentage of the country’s overall income. In 2018, tourism supported 2.5 million jobs, indicating heavy reliance on the industry. When situations adversely impact tourism around the globe, this substantially impacts the economy, and in turn, poverty in Egypt.

Efforts to Reduce Poverty in Egypt

Working to ease economic stress, the Egyptian government succeeded in obtaining a loan from the International Monetary Fund in 2016. While there might be uncertainties for the future of the loan, it is certainly aiding the nation in the return of tourists. Research on Egypt’s travel and tourism show promising signs of continued recovery, according to the World Travel & Tourism Council. In 2019, Egypt’s tourism level improved by 16.5 percent from the previous year, which is higher than the global average. Such an incredible growth rate is a promising sign for the rates of poverty in Egypt.

Foreign Relations with the U.S.

Despite past tensions, the partnership between the U.S. and Egypt has greatly improved. The established relationship could substantially impact the state of poverty in Egypt. The Trump Administration announced a priority of aid for Egypt; specifically, it intends to provide economic reforms and military funds to combat radical terrorism in Egypt. “Our relationship has never been stronger. And we’re working with Egypt on many different fronts,” said President Trump. Upon continuing a solid relationship with the U.S., the Egyptian government could utilize the support in developing a sustainable economy post-loan.

Other Initiatives

Egyptian President El-Sisiis and his officials are also working on economic reform needed to reduce poverty in Egypt. Like many nations, the sudden 2020 Coronavirus outbreak presents additional obstacles in accomplishing this goal. Experts expect that Egypt’s tourism industry will lose more than 40,000 workers to unemployment as a result.

Now, more families will be at risk of falling into poverty, causing a heightened risk of exposure to COVID-19. On March 20, 2020, The World Bank Group donated $7.9 million to fund Egypt’s emergency response. The nonprofit is working with Egypt to create financial, technological and health strategies to protect citizens. Ideally, the country should be able to avoid the anticipated increase in poverty in Egypt through this aid. Assisting the Egyptian economy has become an international effort. Not only is does The World Bank intend for the aid to provide the government with resources, but it also intends to disperse it among Egypt’s citizens, especially those experiencing poverty in Egypt.

Tourism is a key source of income for the country but has recently halted. Additionally, tense international relations and a poor global image have further damaged the already struggling economy. Fortunately, new global partnerships with Egypt have aided in encouraging tourism in Egypt. While the 2020 pandemic puts this travel on hold, the response of increasing aid will support the economy and prevent further poverty in Egypt. If aid continues, Egypt will receive a great opportunity to sustain its economy and people.

GraceElise Van Valkenburg
Photo: Pixabay

Poverty in Turkey
With an increased Human Development Index (HDI) of 0.806 from 0.655 in the last decade, Turkey’s overall development has significantly increased, namely with a hike in life expectancy and education. While the execution of specific long-term policies (Development Programme for Women and Conditional Education Assistance) constantly address issues such as gender inequality and education, the refugee crisis and the disruption that COVID-19 has caused remain more pressing matters. Nevertheless, as all of these existing and new issues pile up, the initiative to alleviate poverty in Turkey has currently slowed down.

The Long-term Causes of Poverty in Turkey

  • Education: The proportion of poor people with limited or no education at all is significant. In fact, a study from 2007 indicated that 26.9 percent were illiterate, 22.6 percent had basic reading and writing skills and 42.4 percent were primary school graduates. These facts might suggest that a lack of education contributes to poverty due to the inability to work at higher-paying jobs. In order to encourage education, Turkey circulated free textbooks and transportation. Additionally, the FAITH project, which the Turkish government implemented, made education compulsory for all citizens for the initial 12 years. Along with the increase in the number of universities from 93 to 107 by 2013, the total gross enrollment increased to 81.6 percent. While the Turkish education system is still not able to compete with the European Union’s standards, it is definitely becoming more efficient.
  • Household Make-up: The mean household size tends to increase in poorer households, as nearly six out of 10 households have more than four members. Meanwhile, 45.6 percent of the poorest women in Turkey are housewives. As the number of people in households increases, the burden often falls to men to fulfill the basic needs of the entire family.
  • External Immigration and Refugees: Around 4.1 million immigrants from Iran, Iraq, Bosnia and Syria have strained Turkey’s resources. Legal immigrants receive access to education, health care and social security under Turkish legislation, namely the Law on Foreigners and International Protection and Temporary Protection Regulation. Furthermore, the demand for housing has driven up its price, pushing more and more people into poverty. Turkey has pledged nearly $35 billion to manage the flow of immigrants, which is inadequate because of the number of illegal immigrants also occupying Turkish territory. The rise in population, due to how drastic it is, has left more people confined to the poverty trap prevalent in the nation.

Turkey’s Measures to Reduce Poverty

The severity of poverty in Turkey has instigated the introduction and implementation of various policies such as the following:

  • The Country Partnership Framework (CPF): CPF is an agreement between Turkey and the World Bank with hopes of achieving growth, inclusion and sustainability under the 11th National Development Program. The General Assembly of Parliament of Turkey has implemented this as part of the 10th Development Plan.
  • The World Bank Group (WBG): The World Bank is partnering with the Facility for Refugees in Turkey (FRiT) to help reduce economic disruption due to the influx of refugees in Turkey by implementing programs with regards to education, employment and social support. For example, FriT, along with UNHCR, has pledged € 23.929.195 to allow access to protection and services for refugees and asylum seekers in Turkey.

Trust Funds in Addition to FRiT

  • The Clean Technology Fund (CTF): CTF  has granted $390 million to support wind power and encourage the private sector to invest in renewable and efficient energy.
  • E.U. Instrument for Pre-Accession Assistance (IPA): IPA funds are providing € 3533 million to Turkey. The most important goal of IPA is to improve public administration and financial governance.
  • Global Environmental Facility (GEF): GEF funds are financing $387,138,238 to focus on climate change and the maintaintence of biodiversity.

How COVID-19 Could Affect Turkey’s Ability to Address Poverty

The unexpected spread of COVID-19 has recently strained the world economy, including Turkey’s ability to implement and administer the necessary schemes to alleviate poverty. In fact, the bilateral trade between China and Turkey is as low as 1.1  percent. Coupled with the loss of tax collection from affected industries (including textiles and garments) and restricted travel abroad, this has led to an increase in national debt and left the private sector enduring heavy losses. Therefore, the government’s ability to address poverty has diminished.

Mridula Divakar
Photo: Flickr

Poverty in Bangladesh
Between 2000 and 2016, Bangladesh has lifted 8 million people out of poverty. According to a World Bank report, the rate of poverty in Bangladesh went from 44.2 percent to 13.8 percent between 1991 and 2017. Improvements include increased life expectancy and nutrition, easier access to electricity, safer water and sanitation and broad-based expansion in education that is accessible to more than 164 million people. The road to ending poverty in Bangladesh is a challenging one, but the country and several organizations are making efforts to accomplish this.

History of Poverty in Bangladesh

About 61 percent of the country is rural while 39 percent of the population is urban. The urban regions experienced their turnaround from poverty at a slower pace than the rural regions with the help of industrial services, which resulted in solving the problems quicker and better for those living in the urban regions. Despite the 1:4 ratio of people still suffering from poverty, the progress has been remarkable. In fact, Bangladesh’s rural areas experienced a 90 percent decrease in poverty.

With the improvements that the country has made towards ending poverty in Bangladesh, the nation’s finance minister Mustafa Kamal has announced that the nation should expect to be poverty-free by 2030. With plans to improve more vulnerable, urban areas, the Special Economic Zones (SEZ) have been key contributors in investing to rebuild the nation by creating 10 million jobs over the next decade. SEZs are areas in a country that is subject to economic regulations that differ from other regions in the same country. For instance, since the urban regions have a slower rebuilding process from the rural, that means that they may be more favorable towards the urban region which has not caught up to the rural region in terms of progress, despite the improvement regarding poverty. With job creation on its agenda, Bangladesh could earn $100 billion in remittance from now until the deadline to wipe out poverty, which equals $1 trillion.

Pizza Hut and KFC

To make matters better, corporate food chains Pizza Hut and Kentucky Fried Chicken have formed a partnership to launch a campaign called the World Hunger Relief, which supports the United Nations World Food Programme (WFP). Founded in 2009, the WFP not only raises funds to provide vitamin and mineral fortified biscuits among other snacks to children in small rural areas, but it also promotes the importance of basic education to help others rise from poverty in the long run.

Yum Incorporated owns Pizza Hut and KFC and has been using its network to raise awareness in the hopes of making a difference on top of the improvements that Bangladesh has made independently. Its success rate has included reaching over 4 million children and calling for customers of the respective food chains to make a contribution. This campaign will be a key asset to ending poverty in Bangladesh by the start of the next decade and preventing it from returning.

The Investment Component for Vulnerable Group Development (ICVGD) Program

The WFP has also partnered with the Bangladeshi government to help women break away from their gender roles through livelihood training and food assistance programs. The Investment Component for Vulnerable Group Development (ICVGD) program’s participants come from all 64 districts of the country, which tend to be remote areas where natural disasters are likely to occur. The implementation of this program received positive feedback after improving food security, income and diet variation in those districts.

The organization is now bringing focus to financial management, life skills and personal hygiene. There is a training period where the women will receive a grant of $180, as well as fortified rice as their rations. The ICVGD is part of the Vulnerable Group Development program that the Ministry of Women and Children Affairs runs, which boasts the largest safety net to aid poor women and children across the country.

Tom Cintula
Photo: Flickr

Poverty In Australia
When looking at poverty around the world, people often overlook the developed nations. These countries are much better off than many others, but that does not mean that their impoverished people are any less poor. Many consider Australia to be one of the leading developed nations, but one in eight Australians and one in six Australian children live in poverty. Here is some information about the issue of poverty in Australia.

How to Measure Poverty

The definition of poverty is different worldwide. One component that the world generally agrees upon, however, is that it is utterly unacceptable for people to live in extreme poverty. In addition, there is the understanding that every human should be born with fundamental rights such as housing, food, clothes and health care.

In Australia, the Australian Council of Social Service (ACOSS) and the University of New South Wales (UNSW) set a more Australia-specific way to measure poverty. It does this by comparing what people make to the median income. As a result, Australia considers people who fall below the median impoverished. However, the organization Compassion has reported more specific information for measuring poverty. For example, it stated that the poverty line for single adults is $433 per week before housing costs. Meanwhile, the poverty line for a couple with two children is $909 before housing costs.

The Numbers

Approximately 3 million Australians are suffering from poverty. Additionally, every one in eight people or 13 percent of the country suffers from poverty. Of the 3 million people, 739,000 are children living below poverty.

Who Hurts the Most?

While there is the blanket term “impoverished,” some suffer more than others. For example, those who hurt the most are often unemployed. This includes people over the age of 65, people from non-English speaking backgrounds and single parents. Among those above, poverty in Australia routinely consists of those who fall lower in the chain of importance. Hence, people like minorities and foreigners are much more susceptible to falling into poverty. According to Compassion, 30 percent of single, elderly women live in poverty. This means that poverty impacts single, elderly women at a disproportionate rate.

According to the Child Fund, children who come from low-income backgrounds are likely to have lower test scores than children above the poverty line. From an early age, children living below the poverty line are already at a disadvantage, but the problems do not often stop in grade school. Low test scores frequently result in low self-esteem and a lack of self-worth, both of which potentially lead to ongoing mental health issues. Among impoverished people, the rates of finishing high school are significantly lower than their counterparts. In addition, the rates of going to college are much lower than even the odds of finishing high school. These low rates of higher education lead to lower-paying jobs, thus creating a cycle of poverty.

Disproportionate Health Issues

Those who fall below the poverty line often experience increased rates of health issues. Millions of impoverished people are more susceptible to health issues because their lack of money sometimes prevents a hygienic lifestyle. After falling ill or experiencing infection, impoverished people are often last on the priority list of Australia’s universal health care system. Obesity is a big issue among impoverished people similar to other developed nations around the world. Furthermore, fast food restaurants can often be much cheaper than healthier options in grocery stores.

Cheaply priced menus are commonplace in the modern world and they pose a drastic threat because people below the poverty line must make a tough decision. As such, they can either spend more money on healthier items and get less or spend less money on unhealthy food and get more. Consequently, this decision might be why the issue of poverty in Australia typically leads to increased rates of obesity among impoverished people.

Solutions

Fortunately, some are recognizing that poverty in Australia is an issue that requires solving. For example, Save the Children is an organization working towards eradicating poverty. The charity’s fight consists of improving access to education for underprivileged children. When the charity receives donations, 73 percent of the funds go towards programs benefitting children and 10 percent go towards fundraising. Additionally, 9 percent goes to administration and 8 percent goes to commercial activity.

Care is another nonprofit organization that is similarly fighting the issue of poverty in Australia. The organization’s efforts consist of programs that empower poverty-ridden women, improving access to education for impoverished children and promoting healthier lives among underprivileged families. Care assisted 2.7 million people throughout 25 countries as of 2019. For every dollar it fundraised and received as donations, 90 cents went to humanitarian programs.

While poverty in Australia remains an issue, there are some attempting to correct the problem. Hopefully, the continued support of organizations like Save the Children and Care will make impoverishment a thing of the past in the country.

Cleveland Lewis
Photo: Flickr

Disaster Risk in Pakistan
Locust swarms ravaged Pakistan in early 2020, overwhelming the agricultural industry. Like many less developed countries, agriculture composes a large portion of Pakistan’s economy. Agriculture alone creates 24.4 percent of GDP and 42.3 percent of the total labor force. Pakistan’s exports also rely on agro-based industries, such as cotton textile processing. As the fourth largest cotton producer in the world, cotton related products in Pakistan provided $11.7 billion of $24.7 billion in total exports last year. Improving preparedness and reducing disaster risk in Pakistan is crucial for national poverty eradication.infrastructure.

Disaster Risk Reduction in Less Developed Countries

Less developed countries (LDCs) are particularly vulnerable to disasters. One study suggested that the efforts aimed at reducing poverty and mitigating disaster risks are interconnected. Removing the loss from natural disasters would remove 26 million people from living in extreme poverty (defined as those who live on $1.9 per day). Poor people and poorer countries are highly vulnerable during natural disasters as they cannot regain societal norms back as effectively as more affluent nations.

Another report from the U.N. OHRLLS summarizes the measures of disaster risk reduction in LCDs and deduces that aims should minimize vulnerabilities and strengthen resilience in LDCs. The initial step taken by most LDCs to reduce the devastating impact of natural disasters is integrating the institutional infrastructure.assessment.

Disaster Risk Reduction in Pakistan

Before the recent locust swarms, natural disasters, including floods, earthquakes, landslides, drought and monsoons have already been an issue in Pakistan’s development. Monsoon season in 2018 alone caused 134 deaths and 1,663 houses to be damaged. Earthquakes in 2005 caused over 80,000 deaths in Pakistan. This staggering number was largely attributed to the low capabilities of emergency services after the earthquakes.

In 2007, Pakistan established the national disaster emergency system. The National Disaster Management Authority (NDMA) was placed in charge of general operations for disaster response.

Five years after the foundation, NDMA’s investment in disaster assessment reached $1.4 billion. That large amount of funds generates plenty of room for reducing disaster risk in Pakistan. Specifically, it allows the development of a monitoring and forecast system across the nation, which collects and consolidates data for disaster assessment.

International Efforts

International organizations developed projects for reducing disaster risk in Pakistan based on the Sendai Framework of Disaster Risk Reduction. This framework sets four priorities to embrace an improved disaster response: a better understanding of disaster risks, wider governance in risk management, improved ability in ex-post disaster recovery and greater investment in resilience development.

Based on these principles and priorities, the projects for disaster risk reduction in Pakistan cover varied issues. The World Bank offered $4 million to establish early forecast systems, ensuring Pakistan would have access to crucial disaster assessment information. Further international aid (£1.5 million) was offered from the U.K. to promote local safety and resilience culture through education and innovation. The U.N. provided the largest investment of $46 million to ensure disaster preparedness and other measures are the priority in policy implementation at every level.

Moving Forward

These efforts by the Pakistani government and other international organizations have improved the nation’s ability to prepare for and respond to natural disasters. This work has reduced the significant impact disasters generally have on the impoverished. Moving forward, it is essential that disaster risk reduction projects continue to grow, as new methods and technologies become available.

– Dingnan Zhang
Photo: Flickr

Bolivia's Poverty Reduction
Bolivia is a South American country that continues to reduce its high poverty rate. Poverty lowered substantially from 66 percent in 2000 to 35 percent in 2018. The government of Bolivia took direct action to develop its economy, reduce its poverty and income inequality and increase foreign investment. The Latin American country still has a high poverty rate, yet its progress in the past 20 years shows promise that Bolivia’s poverty reduction and economic development will continue.

Government’s Direct Involvement in Poverty Reduction

The Bolivian government approved the National Economic and Social Development Plan 2016-2020 to bring about change in its country. Former President Evo Morales fought for income equality and higher wages as Bolivia’s president, and the country is still fighting for his goals. The country intends to help its people live a prosperous life without worrying about the effects of poverty, such as hunger and an inability to afford health care. The main objectives of the plan include eliminating extreme poverty, granting basic services to the entire population and diversifying its economy. The plan set forth a continuation of Bolivia’s poverty reduction progress since 2000 while also lowering income inequality.

Poverty almost reduced by half from 2000 to 2018, which economic growth partly drove after Bolivia transitioned into a democratic society during the 1990s. Income inequality lowered as the Gini coefficient demonstrated. If the Gini coefficient is zero, then income inequality is zero. This income inequality indicator showed a reduction from .62 in 2000 to .49 in 2014. For reference, the U.S. Gini coefficient in 2017 was .39. The 2016-2020 plan sought to continue its efforts in reducing income inequality. Although the Gini coefficient lowered, income inequality still remains an issue in Bolivia.

Poverty Reduction Through Economic Growth

Economic growth is another factor that helped with Bolivia’s poverty reduction efforts. Bolivia’s GDP growth hovered around 4 percent since the early 2000s. From 2000 to 2012, Bolivia increased its exports that consisted mainly of minerals and hydrocarbons. Although hydrocarbons grew controversial in Bolivia, hydrocarbons and minerals accounted for 81 percent of all exports in 2014. In 2000, its exports accounted for only 18 percent of GDP, yet exports grew to 47 percent in 2012. Bolivia’s decision to focus on exports helped grow its economy, add jobs and reduce income inequality. In time, Bolivia may transition to cleaner sources of energy for its future.

Economic growth led to wage increases for many Bolivians, which expressed the idea of poverty reduction through economic growth. Bolivia’s GDP grew by a massive 80 percent from 2000 to 2014, and there were various positive side effects of this growth. Salaries increased after the government took direct involvement in income inequality. The real minimum wage increased by 122 percent in the years 2000-2015. The average labor income also increased by 36 percent during 2000-2013.

The International Monetary Fund (IMF) came to the conclusion that labor income was the number one factor that led to reductions in poverty and income inequality from 2007 to 2013. Nonlabor income such as remittances, rents and transfers contributed a small amount to these reductions. Nonlabor income was an important aid for the elderly though.

Bolivia’s Progress in Income Inequality and Economic Development

Bolivia is an excellent model for what is possible through a government’s direct involvement in poverty reduction. Economic growth helped fuel Bolivia’s objectives in reducing poverty and bringing income equality to its people. Although poverty remains high, Bolivia’s progress in the past 20 years shows promise that poverty will continue to lower. Income inequality remains an issue, and as shown from the IMF’s research, wage increases are key to Bolivia’s poverty reduction.

Lucas Schmidt
Photo: Flickr

Calgary Reduces Poverty in 2020
Over the last 6 years, poverty in Calgary reduced. From 2015 to 2017, the rate dropped from 9.8 percent to 6.9 percent in 2019. Vibrant Communities Calgary (VCC), a nonprofit organization, has advocated for communities under the poverty line since 2005. Delving into its own independent research, the results have improved with the assistance of Enough for All (E4A). This is a city-based poverty reduction strategy where its citizens, people in business, educators and government officials come together to discuss ways to solve this issue in their community. Back when it started in 2013, many community organizations and government officials made progress regardless of status.

Enough For All

The provincial government introduced the Alberta Child Benefit, which increased and indexed income support programs to the cost of living. Meanwhile, the federal government released Canada’s first national poverty reduction strategy. Most recently, E4A has already made an impact through its partnerships in over fifteen community service areas where poverty has decreased. Some have stated that the ongoing vision of this strategy has shown progress as “a community where there is enough for all,” hence the name of the project. The mission is to resume its goodwill by creating opportunities to align and leverage the work of hundreds of organizations and thousands of its Calgary’s citizens to reduce poverty in the city. It has a target of reducing Calgary’s 2015 poverty level by 30 percent by 2023. This is one of the plans that the city of Calgary intends to use to reduce poverty in the year 2020.

Market Basket Measure

When applying the Market Basket Measure to the incidence of low income in Calgary, there has been a decrease in the city’s poverty situation. It is unclear if this qualifies as a downward trend. Market Basket Measure is a measure of low-income based on the cost of a specific basket of goods and services representing a modest, basic standard of living. This includes the costs of food, clothing, footwear, transportation and shelter among other expenses for families made up of two adults ages 25 to 49 and two children ages 9 to 13. A working group of federal, provincial and territorial officials included its definition of disposable income, led by Human Resources and Skills Development Canada (HRSDC) between 1997 and 1999.

Calgary’s City Council and the United Way of Calgary adopted this program unanimously, as well as the area’s Board of Directors back in 2013. Vibrant Communities Calgary received the steward of the strategy, acting as a backbone organization to guide the implementation of the strategy while the community acts to make helpful changes within the city. In the last five years, Calgary has experienced an increase in unemployment and an economic slump, despite the addition of 7,000 more jobs in Calgary. Despite the unemployment rate at 7.2 percent in Cowtown, it has improved steadily.

Poverty in Other Areas of Canada

Canada has an official poverty line. With the release of the Canadian Poverty Reduction Strategy, Opportunity for All, the federal government has announced that the Market Basket Measure will be the single measure for measuring and reporting on income poverty moving forward. The establishment of a single poverty line should create alignment across municipalities, provinces and territories.

The minimum wage is infinitely closer to the living wage. The gap between Calgary’s living wage of $16.45 per hour and the provincial minimum wage of $15.00 per hour is at a historical low of only 8 percent. Social assistance incomes continue to fall short of the poverty line. Despite a recent increase, benefit levels for income support are still about 50 percent of the poverty line.

Poverty in Alberta

The province of Alberta collectively has a poverty rate of 5 percent among children, cutting the rate in half from 2015 to 2017. In the same time frame, there were 622,000 children living below that line. This is a 2 percent drop with an 8.2 percent decrease within the past decade overall. Dating back to 2007, there were more than 1.1 million children living under the line. The major reason for this improvement is due to the Canada Child Benefit (CCB), as well as the Alberta Child Benefit. The CCB gives tax-free monthly payments to eligible families to help with the cost of raising children under 18 years of age. Additional perks include child disability benefits for children with physical and developmental disabilities. This is another way that poverty in Calgary is reducing in 2020 while helping the province do so entirely.

As for the Alberta Child Benefit (ACB), there is an increase in income support programs that aid the cost of living, community hubs and a national poverty reduction strategy involving the city. While the city is planning to further improve its unemployment rate, government officials and community organizers have developed another program. Poverty continues to be the day-to-day reality of more than 120,000 Calgarians within the province. The ACB is a tax-free amount that goes to families with children under 18 years of age with a yearly salary below $43,295. There is no income requirement, which is similar to the Alberta Family Employment Tax Credit, a tax-free amount that goes to families that have a working income and children under 18 years of age.

With the number of plans put in use, along with an outpouring of support within the community, Calgary has made headway in giving its citizens a chance to hope for a better outcome of its future. These ideas have shown that one of Canada’s most populous and prosperous cities can improve as poverty in Calgary continues to reduce.

Tom Cintula
Photo: Flickr

China Reduced its Poverty
China reduced its poverty from 97 percent in 1978 to 1.7 percent in late 2018. In the late 1970s, China began focusing on poverty reduction and economic development. Through various economic efforts, China became market-oriented to decrease poverty, which subsequently grew the private sector, created modern banks, reformed the agricultural industry, developed the stock market and spurred foreign trade and investment. China aims to reduce poverty rates to 0 percent in 2020, which is in line with the U.N. Sustainable Development Goal of eliminating global poverty.

China’s Alleviation Method

The International Poverty Reduction Center in China reported lifting more than 850 million of its people out of poverty from 1981 to 2013. During that time period, extreme poverty decreased from 88 percent to 1.85 percent. To achieve a 0 percent poverty rate, China is using extensive expertise in helping Chinese nationals who reside in poorer regions. The current poverty rate of 1.7 percent primarily encompasses those in poor rural regions. 

Similar to the approach that China took in the 1970s and 1980s, it aims to increase efforts to open the economy for trade, diversify the marketplace, improve agricultural practices and implement education reform.

Poverty is still an issue throughout the agricultural industry, but the government is aiming to completely eliminate the Chinese poor. China created a poverty registration system that enables tracking of information relevant to those in poverty. It gathered data from more than 128,000 villages and 290,000 households that indicated that many of the poor reside in Guizhou, Yunan, Henan, Hunan, Guangxi and Sichuan. China aims to accomplish additional poverty reduction techniques through policies based on industrial development, relocation, eco-compensation, education and social security improvement. The Chinese government has managed to reduce poverty through direct involvement in hard-to-reach rural areas that have innately higher levels of poverty.

To support economic growth, the Chinese government is pushing for new industries in these poor regions, such as e-commerce and tourism. Furthermore, the relocation of poor families residing in areas prone to earthquakes or landslides has supported Chinese poverty reduction measures. The country is also emphasizing education and occupational training. Public health services will be available to the poor, especially in the remote mountainous regions. These actions indicate that China has reduced poverty not only through broad approaches but also through direct impacts.

Direct Progress

Progress is already underway in the government’s push for new industries. China has reduced poverty through these industries that benefit hundreds of thousands of Chinese citizens. China E-commerce centers, known as Taobao villages, enable the Chinese to sell their produce and specialties online. In 2015, 780 Taobao villages employed more than one million people and included more than 200,000 active online storeowners. Comparatively, in 2019, the number of Taobao villages grew to 4,310 and active online shops totaled to more than 660,000.

China’s Investments in Africa 

China also helps other countries with economic development and poverty reduction. As an economy grows, poverty trends to gradually lower; on the other hand, job growth, economic diversification and agricultural productivity improve. One can see a specific example of China’s method for poverty reduction through its investments in African countries to build foreign economies. China has provided more than $57 billion in financial aid to more than 170 countries. In 2018, China accounted for almost 20 percent of all infrastructure and capital project investment in Africa.

A Chinese Poverty-Reduction Model for Global Use

China reduced its poverty through economic development and direct impact. In 2016, China sent 775,000 officials to poor regions to alleviate poverty. The country sent these officials out to work in one to three-year posts. This direct impact demonstrates how a country can eliminate poverty through strong economic growth in remote regions. 

Brett Rierson, China representative for the World Food Program said, “China invested in agriculture to reduce poverty and successful agricultural projects were built up from the grassroots.” Rierson believes China is a good model for how to reduce poverty in developing countries.

Although China has been a positive influence on developing economies, one country alone cannot eliminate global poverty. Other developed countries could use China as a model for reducing poverty and improving living standards.

– Lucas Schmidt
Photo: Flickr