Archive for category: Poverty Reduction

Information and stories about poverty reduction.

The Role of the Private Sector in Poverty Alleviation

The Role of the Private Sector in Poverty AlleviationThe responsibility of providing solutions for global poverty has traditionally fallen to governments and international aid agencies. Increasingly, however, the private sector is being singled out as another important player in achieving this task. Given that development is already a key interest of private sector organizations, it seems reasonable to assume that the attention being given to the private sector is justified. Going forward, then, it is important to understand exactly what the role of the private sector in poverty alleviation should be.

The ways in which the private sector can benefit the lives of the poor have been well documented. From creating jobs and enhancing education to producing the goods and services used by those in poverty, it is clear that the private sector is a part of many, if not all, areas of development. As such, governments should be seeking to foster a business environment through which the benefits of the private sector can be harvested.

The main problem with this, however, is that across much of the developing world, such conditions do not exist. Often, new market entrants find the environment to be hostile and difficult to navigate, which can lead to proposed initiatives collapsing or being withdrawn. As such, the role of the private sector in poverty alleviation is contingent on external conditions. In such cases, it is the role of government to attempt to make these more favorable, or at least competitive; otherwise, no progress will be made.

Government action should not stop at this point. With increased private sector activity comes increased growth, which allows for further opportunities for more traditional methods of combatting poverty. As such, it is perhaps easier to look at the public, private and charity sectors as three heads of one entity when it comes to alleviating poverty. Through collaboration, rather than separation, it is far more likely that the goal of poverty reduction can be achieved.

– Gavin Callander
Photo: Flickr

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How to Help People in Mexico: Four Influential Organizations

Help People in MexicoIn 2014, the Mexican government reported that poverty within the country rose to 46.2 percent —  nearly half the population living below the poverty line. For the country with a population of just over 123 million, the startling percentage is equivalent to over 55 million people living in poverty. These people are defined as living on less than 2,542 pesos or $157.70 per month.

Despite nearly 80 percent of the population living in urban areas, mainly in or around the capital Mexico City, four percent of the population has unimproved drinking water and 15 percent has unimproved sanitation facilities.

Here are four nonprofits advocating, fundraising and working on the ground to help people in Mexico.

1. Children International

Working in ten countries around the world including Mexico, Children International is a nonprofit focused on helping kids living in poverty. With over 70 community centers and over 9,000 volunteers worldwide, Children International provides children living in poverty with assistance in health, education and employment through empowering programs and resources.

The long-term impacts aim to help break the cycle of poverty. Their website offers a number of ways to get involved including sponsoring a child by donating $32 a month, making a single donation or volunteering at one of their community centers.

2. Feed the Hungry

Relying on almost entirely private donations, Feed the Hungry delivers meals and nutrition education to children throughout San Miguel, Mexico. Through school meals, family education programs and community events, the nonprofit aims to alleviate poverty in the poorest communities. Feed the Hungry operates kitchens partnered with schools in 33 communities.

Most recently in 2017, they opened new kitchens in Moral de Puerto de Nieto, Los González, Puerto de Sosa and Nuevo Pantoja, feeding more than 400 additional children every day. You can help people in Mexico with Feed the Children by sponsoring a school kitchen, advocating throughout your community or volunteering on the ground.

3. PEACE

PEACE (Protection and Education: Animals, Culture, and Environment) is a nonprofit working in the Bay of Banderas, Mexico, to increase educational and economic opportunities in developing areas. To support improved quality of life, the nonprofit runs programs consisting of topics ranging from community education to Mexican culture preservation to environmental protection.

You can get involved by donating to the organization or volunteering for the company remotely or on the ground.

4. PVAngels

Focused on uplifting the communities in Puerto Vallarta, PVAngels combines activity-driven events with fundraising to create community awareness. The money raised goes to charities focusing on a variety of issues including environmental issues, health care, education, family assistance and recreation services.

You can help people in Mexico by donating to any one of PVAngels’ charities or volunteering as a “partner for change” assisting directly the communities in Puerto Vallarta.

By utilizing nonprofits as well as individual volunteers to help people in Mexico, Mexico’s future will hopefully be a flourishing one.

– Riley Bunch

Photo: Flickr

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US House of Reps Passes Digital GAP Act

US House of Reps Passes Digital GAP Act
The U.S. House of Representatives passed the Digital Global Access Policy Act or the Digital GAP Act (H.R. 600) on January 24, just a day after the bill was reintroduced by House Foreign Affairs Chairman Ed Royce (R-CA-39). The legislation is aimed at promoting internet access in developing countries to spur economic growth and job creation, reduce poverty and improve health while advancing U.S. interests.

In today’s technology-driven world, internet access is a major driver of economic and social improvement. However, 4.2 billion people remain offline — about 60 percent of the world’s population, most of whom are in developing countries. In these areas, internet access is hindered by inadequate infrastructure and a poor regulatory environment, stifling the potential for sustainable growth and development.

The Digital Global Access Policy (GAP) Act seeks to promote first-time access to mobile or broadband internet for at least 1.5 billion people in both urban and rural areas of developing countries by 2020. It aims to do this is a variety of ways, including:
  • Removing tax and regulatory barriers to internet access.
  • Promoting internet deployment and related coordination, capacity building, and build-once policies and approaches in developing countries.
  • Promoting the use of the internet to increase economic growth and trade, along with democracy, government accountability, transparency and human rights.
  • Promoting inclusive internet policymaking for women, people with disabilities, minorities, low-income and marginalized groups and underserved populations.

On the House floor prior to the vote, Chairman Royce noted that women and girls are disproportionately affected by this digital gap. He said that “bringing 500 million women online could contribute up to $18 billion in GDP growth across 144 countries. That is how you reduce poverty; that is how you advance U.S. interests.”

In addition to Rep. Royce, Representatives Cathy McMorris Rogers (R-WA-5), Grace Meng (D-NY-6) and Eliot Engel (D-NY-16) were also listed as original cosponsors of the bill.

The Borgen Project commends the House for making this legislation a priority in the new year and urges the Senate to move swiftly to get this bill to the President’s desk.

– Kim Thelwell

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Poverty in Vanuatu

Free stock photo of alaska, background, bahamas Stock Photo

Vanuatu is a country in the southwestern Pacific Ocean that consists of 13 main islands and many smaller ones. With a total population of 318,007, Vanuatu is one of the smallest nations in the world. Despite aggregate economic growth, of those living in this country, approximately 16% lived below the international poverty line, while 4% faced unemployment in 2020. Furthermore, 75% of the population lives in rural areas with limited access to health care and other social amenities.

Causes of Poverty in Vanuatu

Geography plays a key role in understanding poverty in Vanuatu. The country consists of more than 80 islands and is characterized by rugged terrain, volcanic activity and dense tropical forests. The dispersed nature of its islands makes infrastructure development challenging, limiting access to basic services such as health care, education and transportation, particularly in rural areas where the majority of the population resides.

Additionally, the susceptibility to natural disasters, including cyclones and earthquakes, further exacerbates poverty by disrupting livelihoods and infrastructure. Limited arable land (1.8% of the total land) and reliance on subsistence agriculture also contribute to economic vulnerability. These geographic factors collectively contribute to Vanuatu’s high poverty rate.

Even in a relatively small island nation, the plight of people experiencing poverty in urban and rural areas is not easily delineated. Indeed, different areas experience varied iterations of development. For example, from 2006 to 2010, the rate of poverty declined from approximately 20% to 18% in Port Vila, the capital city. However, it increased from approximately 12% to 24% in Luganville during the same period. These discrepancies emerge largely because of geographic location, which determines principal economic activities such as fishing and tourism.

Access to basic foodstuffs also depends on weather patterns and agricultural production, which are especially interdependent on small, shallow islands. These coastal communities are threatened by rising sea levels and increasingly frequent tropical storms, such as Cyclone Pam, which swept through the Pacific in 2015 and destroyed up to 96% of food crops on some of Vanuatu’s southernmost islands.

Solution

Although Vanuatu is susceptible to extreme weather, traditionally sound building practices offer light but flexible protection and help minimize fatalities in emergencies. An increase in telecommunication infrastructure also proved to be life-saving. When Cyclone Pam hit, SMS text alerts notified island residents. In many cases, it was the only effective warning system that allowed citizens to prepare accordingly. This access to modern technology can help growing populations confront increasingly frequent extreme weather movements.

Despite these obstacles, the ADB reports that Vanuatu’s overall poverty rate is low relative to other small nations in the Pacific. Recently, increases in tourism, agricultural production, foreign aid and investment have been reflected in Vanuatu’s positive economic growth. Furthermore, the United States Agency for International Development (USAID) recognizes the delicate geographic circumstances of Pacific islands such as Vanuatu, as nearly 50% of the Pacific Islander population lives within a mile of a coastline. Therefore, USAID is committed to alleviating poverty in Vanuatu by building infrastructure that will withstand pressures from both climate change and extreme weather.

By understanding the unique circumstances of island nations such as Vanuatu, the U.S. and other global economic powerhouses can allocate aid in ways that are both culturally and geographically appropriate, helping to lift these vulnerable populations out of poverty.

– Laurel Klafehn
Photo: Flickr
Updated: May 27, 2024

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USAID Leads the National Fight on Global Poverty

Global Poverty
As of 2013, 767 million men and women worldwide live under the global poverty line. Nearly 11 percent of the world’s population still struggle to make ends meet with less than $1.90 per person per day. According to recent World Bank statistics, much of this community is densely populated in sub-Saharan Africa. This region touts over half of the global impoverished community.

The U.S. Agency for International Development is one of the many organizations looking to make strides with this epidemic. Launched by the Foreign Assistance Act of 1961, USAID aims to lead the U.S. national effort to abolish socioeconomic inequality.

This agency has instituted multiple initiatives geared towards combating widespread global poverty. Most notably, the U.S. Global Initiative Lab, instituted in 2014, works in conjunction with prominent businesses and academic institutions to address preeminent wealth disparity issues through a wide network of pooled resources.

These cornerstone partnerships offer advanced research and development capabilities which would otherwise be unavailable to one single entity. The U.S. Global Initiative Lab has also recently sought to implement technological advances in these poverty-stricken communities. The Lab has labored to effectively reallocate funds to provide the necessary groundwork for these actions to take place.

One USAID administrator, Rajiv Shah, expresses optimism when discussing these changes in a 2014 interview with Time Magazine. “[…] if we could get and invent new seeds, new mobile technology, and open new data centers to help farmers connect their crop prices and understand weather variability, we can do something transformational […].”

In 2016, USAID requested a budget of $50.1 billion to carry out development activities. This lump sum included a $35.2 billion base request to directly support people and global health programs while bolstering American U.N. leadership.

In its Congressional budget justification, USAID recognized the need for “accountability, efficiency, and effectiveness in the use of taxpayer dollars.” Additionally, the agency directly pointed out the need for budget allocation to African programs.

This request specifically outlines the need to secure policies concerning democracy, education and economic growth. USAID points to democratic gains in Nigeria as well as political transitions throughout the continent as vital measures towards infrastructural improvement.

These initiatives illustrate a refreshing sense of awareness on the part of USAID. Blindly throwing money at an issue yields ineffective and temporary solutions. Dire situations require resilience and thoughtful action.

USAID’s mission statement calls for “democratic societies to realize their potential.” The organization does not look for immediate solutions to complicated problems. More accurately, USAID works to promote a stable environment which can cultivate economic prosperity for years to come.

USAID believes actions like theirs may go to “define the majority of the history written about our era.” Time will show the scope of the impact USAID can have in the fight against global poverty.

– Brady Rippon

Photo: Flickr

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Palm Tree Oil Plantations in Gabon Create Rural Jobs

Palm Tree Oil Plantation
With notoriety for being one of six leading oil producing countries in Africa, Gabon embarked on a new project — developing palm tree oil plantations aimed at reducing the poverty gap and encouraging sustainable development.

Since 2013, Gabon has been facing a decline in its oil reserves. The government committed up to one million hectares of sustainable land to appeal to investors in agricultural development and spawn economic diversification.

Collaboration With Olam Palm Gabon

Olam Palm Gabon, Singapore’s Olam International Ltd and Gabonese government-owned company made an agreement with the government of the Republic of Gabon to utilize 50,000 hectares of land for palm plantation.

The development of palm tree oil plantations will enable the country to diversify its dependency on oil and instead invest in a more lucrative and long-term venture. Palm oil trees can produce fruit for more than 30 years with a plant yield far more advantageous than any major oilseed crop.

Sustained Economic Livelihood

Gabon has a population of 1.9 million, the highest urbanization quota in Africa with more than four in five Gabonese citizens residing in the metropolitan area. With an additional unemployment rate of 20%, partnership with Olam to build plantations will generate a revenue of $400 million and up to 5,000 new jobs.

Planting began in 2011; currently, 31,000 hectares exist. Upon complete production, the plantation is expected to yield 24 metric tons of fruit bunches per hectare and 5.2 metric tons of oil per hectare. The total estimated investment in phase one development of plantations, palm oil mills and related assets was $500 million.

Six thousand five hundred and two hectares have been sold and leased for $130 million. This proves Gabon’s ability to support innovative financial structures designed for the growth of the palm oil sector.

Job and Investment Opportunities

Experts believe that investment in the palm tree oil plantations in Gabon and the rest of Africa is thriving and will create local jobs and guarantee the stability of the local economy. Ali Bongo Ondimba, the head of State, commissioned on Sept. 16 the new production site of sustainable palm oil of Olam, in Kango, in the Estuaire province. Eight hundred jobs have been created in this location, with an inevitable 120 contracts planned. Social contracts signed by Olam ensure small farmers are key sellers in the project with a mutual benefit of electricity, road repair and water supplies.

Falling oil prices in Gabon have had the most severe effect on the country’s poor. The project also entails support of local community farming around Kango with the construction of 400 accommodations and social infrastructures.

“In Sub-Saharan Africa, many countries rely on extractive industries for revenues, but extractive industries don’t create a lot of jobs, and so countries are beginning to invest more in agriculture as a means of job creation,” said Gagan Gupta, chief executive at Olam Gabon Enterprise. “To succeed, however, agriculture projects must take into account, and invest in, local communities.”

Given the attention Gabon has received for their actions, it is hopeful that such efforts will continue to yield fruitful results encompassing economic growth.

– Shanique Wright

Photo: Flickr

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African Development Bank: Youth and Women Support in Sahel

African Development Bank Embarks on Youth and Women Support in Sahel
The African Development Bank has been ardent in their commitment to support women’s empowerment and employment opportunities for youth in Sahel. Alberic Kacou, vice president for Corporate Services and Human Resources at the African Development Bank, noted that the prevailing global economic challenges were a harbinger for African countries to diversify their economies and reduce poverty during a recent speech.

Affirmative Finance Action for Women in Africa (AFAWA)

The African Development Bank launched the Affirmative Finance Action for Women in Africa (AFAWA). This program will invest $300 million in funded support for women. There is also an additional $3 billion to support African countries with women involved in business. Women will have an opportunity to empower themselves and create an independent path for other young African girls to pursue.

Jobs for Youth in Africa

In collaboration with the International Institute of Tropical Agriculture (IITA), the African Development Bank launched the Jobs for Youth in Africa program to put an end to youth unemployment by creating 8 million agribusiness jobs within a five-year span.

The program will stimulate the creation of 25 million jobs within the next ten years. A total of $3 billion will be used to fund young entrepreneurs in Africa and facilitate the enhancement of skills to better network youths with industrial development.

Program Offers Youth Training

The training centers and facilities provided by the African Development Bank and the IITA will assist African youths to tackle work in the agricultural sector. The initiative also seeks to encourage unemployed African youths to become involved in agriculture in order to make it a catalyst for development in Africa.

Second Strategy in Effect

Akinwumi Adesina presented five development priorities for the institution in September 2015. The “Feed Africa” initiative is aimed to amplify job creation and make the agriculture sector a lucrative industry. The African Development Bank plans to reduce Africa’s imported food dependency by 2025.

The Benefit of Farmers

Another solution to improve the agricultural sector in Africa is to support local farmers by forming partnerships in the production of goods and reduce the amount of food being imported. This will enable the country to “feed itself” and decrease the high levels of youth unemployment. The removal of regional trade barriers will help to maximize Africa’s agricultural potential in food production.

These dynamic programs created by the African Development Bank will prove influential towards the welfare and positive development of African communities for youth and women.

– Shanique Wright

Photo: Flickr

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Five Lessons the Marshall Plan Taught About Poverty Relief

The Marshall Plan
The battles from World War II resulted in some of the worst devastation in history, as military and civilian areas alike were targeted in aerial bombardment, which left millions dead and entire cities reduced to rubble. Devastation and breakdown of social fiber were so prevalent in Europe that the basic building block of civilization — the trade between farmers and urban dwellers offering food for goods and services — began to break down.

George C. Marshall, serving as the newly appointed secretary of state in 1947, outlined a plan to aid Europe with funds for rebuilding key infrastructure and industry. Though it has been criticized for reforming European markets in the style of the U.S. economy, the Marshall Plan undoubtedly helped spur economic recovery in Europe devastated by one of the most destructive wars in history.

The U.S. spent over $13 billion for the economic recovery of Europe between 1948 and 1951. In 2016 dollars the equivalent would be almost $130 billion. By helping to rebuild Europe, the U.S. found a new market for its manufactured goods that helped the country from sliding back into depression following the war. Today, the plan still holds lessons for combating poverty in the 21st Century.

Economic Development is Critical

Any approach to aid that doesn’t take the economic situation into account is doomed to short term success. The Marshall Plan made a point of focusing on rebuilding the economies of Europe including “…promoting industrial and agricultural production with the object of becoming independent of outside assistance…include(ing) projects for increased production of coal, steel, transportation facilities, and food.”

Oversight is Essential

The provisions of the Marshall Plan created a new organization, the Economic Cooperation Administration, consisting of an administrator, a deputy and a staff composed of economists, accountants, lawyers and administrative workers. The Act empowered the administrator to create rules and regulations regarding the distribution of aid based on ground conditions. The administrator was on equal footing with the secretary of state, which the president of the U.S. set as the arbitrator in any disputes between them. Other rules outlined two advisory boards and a special “roving ambassador” to aid the administrator. The plan even established a congressional “watchdog committee” for additional governmental oversight. These clearly defined duties helped to ensure the aid outlined in the plan made it to refugees who needed it most.

Confidence Must Be Restored in Local Economies

The Marshall Plan took measures to restore vital infrastructure and public schooling, which helped to give ordinary citizens the semblance of order necessary to build consumer confidence in their economies. Provisions in the plan also provided for “taking necessary financial and monetary measures to stabilize currency and exchange and balance the governmental budget of the signatory country.” The end goal of the stabilizing effects was to create a favorable environment for American investment in Europe.

Aid Should Be Focused Regionally, Not on Single Countries

Experts believe one of the greatest reasons for the success of the Marshall Plan was that it focused on rehabilitating an entire region as an economic unit rather than singling out specific countries. Aid efforts crossed borders and gave a sense that the continent was in the fight together to return to previous levels of economic development. Under the Marshall Plan, assistance was available to countries in the Western Hemisphere. The agreement tasked the U.S. secretary of state with negotiating the free entry of supplies to countries participating in the plan. The administrator was still able to refuse aid in the interest of national security in case it had become clear supplies were supporting military forces. Under this provision, countries in Eastern Europe falling under the Soviet bloc did not receive aid.

Aid Should Be Coordinated Through the UN

Aid through the Marshall Plan filtered through U.N. organizations for distribution. Also, the rules of the plan required the administrator to send progress reports to the international organization. By coordinating efforts through the U.N., the U.S. increased the legitimacy of its aid programs and allowed some measure of input from U.N. officials.

Marshall himself outlined the reasoning behind the aid in a speech at Harvard University on June 5, 1947. In the address he stated, “It is logical that the U.S. should do whatever it is able to do to assist in the return of normal economic health in the world, without which there can be no political stability and no assured peace. Our policy is directed not against any country or doctrine but against hunger, poverty, desperation, and chaos.”

– Will Sweger

Photo: Flickr

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The King Scholar Program at Dartmouth College

King Scholar Program
The King Scholar Program is a full scholarship gifted to Dartmouth College students who are dedicated to alleviating poverty in their home countries. The program was funded by Dorothy and Robert King, who wanted to, “help address the problem of global poverty by funding exceptional students from developing nations in Latin America, Africa, and Asia at Dartmouth.”

Students who receive the King Scholarship have ongoing academic mentorship throughout their career at Dartmouth College and course development that encourages them to focus on leadership and international development.

The King Scholar Program encourages its participants to actively participate in ending global poverty. For example, during the students’ participation in the program, they must return to their homes for one summer to research and report how they would end poverty in their countries. After graduating, the students are encouraged to return to continue their work.

Additionally, during their freshman and sophomore years, King Scholars participate in King Leadership Week, which takes place in Washington, D.C. and New York. During this event, they have the opportunity to meet leaders in international development, gain context for work being done in the field and network for future employment.

There is no special application for the King Scholar Program, but the Dartmouth Admissions Office, “elects students for this special honor who embody the vision of the program, including a commitment to alleviating poverty, a record of academic excellence, and a passion for global issues.” The program’s current members hail from Jamaica, Zimbabwe, Kenya, Rwanda and Burkina Faso and all share a similar passion to making a difference in their countries.

By encouraging young students from developing countries to make a difference in alleviating global poverty, the King Scholar Program is creating influential leaders who are ready to make palpable changes in their home countries. This causes students to have a stronger connection to the work they are doing, and be inspired to make a change. This type of education is one that makes a lasting difference in terms of fighting global poverty.

– Julia Arredondo

 

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SUN Movement’s Campaign for Fighting Malnutrition

SUN Movement
Malnutrition accounts for nearly half of all deaths among children under five. While the majority of these deaths occur in Africa and Asia, the loss of human life due to hunger and malnutrition is a global burden. Malnourished children are more likely to get sick, suffer from abnormally severe symptoms of common illnesses and die from otherwise preventable illnesses. Thankfully, organizations such as the SUN Movement work to reduce this hunger-related child mortality rate.

Malnutrition and Infection

The link between malnutrition and infection can create a cycle wherein poorly nourished children have a weaker immune system, which in turn deteriorates their nutritional status. Malnutrition can also stunt a child’s growth, predisposing them to cognitive disabilities.

Hunger and malnutrition take a particularly severe toll on the developing world, where one out of six children (about 100 million) are underweight, one in three children are stunted and 66 million children go to school hungry.

The SUN Movement

Scaling Up Nutrition, or SUN Movement, is a worldwide campaign to alleviate hunger and malnutrition. SUN aims to unite governments, the United Nations, civil society, researchers, donors and business into a cohesive movement to improve global nutrition.

Focusing on the goals established at the 2012 World Health Assembly, SUN movement identifies four strategic processes as the major institutional changes needed for scaling up nutrition worldwide:

  1. Endorsement of National Nutrition Policies that Incorporate Best Practices. Newly enacted laws and policies should reflect proven interventions while paying special attention to women and their role in society.
  2. Sustained Political Commitment and Establishment of Functioning Multi-stakeholder Platforms. Improving nutrition requires a political environment grounded in multi-stakeholder platforms. The dialogue around hunger and nutrition should be open, for different groups to share the responsibility of scaling up nutrition throughout the entire world.
  3. Alignment of Actions Across Sectors and among Stakeholders. The country plans to improve nutrition should reflect frameworks of mutual responsibility and accountability among stakeholders.
  4. Increased Resources for Nutrition and Demonstration of Results. Multiple sectors and stakeholders should increase financial resources for the implementation of plans to improve nutrition.

Each participating country is required to meet state-specific goals and objectives for scaling up nutrition before they can partake in SUN Movement events, like the Annual Global Gathering. This event is where government leaders and multi-stakeholder groups meet to collaborate, share progress, learn from each other and offer new practices for improving nutrition.

SUN Movement has several mechanisms for maintaining oversight and staying on track to achieve its goals. The SUN Networks align resources and foster collaboration, the lead group provides strategic oversight and enforces accountability and the executive committee represents SUN Movement at the international political level. There is also a secretariat and multi-partnered trust fund.

SUN Movement acts like the United Nations for Hunger and Nutrition, with clear guiding principles to achieve goals through cooperation and collaboration. The multifaceted structure of SUN Movement accurately confronts the varied nature of hunger and malnutrition, making the organization an important player in the fight to improve nutrition worldwide.

– Jessica Levitan

Photo: Flickr