Archive for category: Poverty Reduction

Information and stories about poverty reduction.

,

Textile Traditions: How the Handloom Can Fight Poverty in India

Handloom
In early August of this year, Indian Prime Minister Modi launched the first National Handloom Day in Chennai, championing traditional textiles as a tool to fight poverty in India.

Last year in October, Modi called upon the film industry to highlight textile products, asking them to include at least one product in their films. According to the government, textile sales rose nearly 60 percent as a result of the added exposure.

The Indian government has also recently announced that it is establishing a policy framework to additionally promote handloom products in the e-marketplace, aiming to popularize the “India Handloom” as a brand.

Handmade textiles are still commonly used for special occasions such as weddings, but Modi says popularizing the textiles as fashion pieces could be a real boost to the Indian economy.

“People wear handloom clothes on social occasions. We need to popularize this among youth. This will give much-needed boost to the handloom sector,” Modi said of the e-commerce avenue.

A number of famous handloom products were born in India, like the Kani shawl of Kashmir and the sarees of Tamil Nadu. According to the prime minister, if the use of handloom products was raised just 5%, turnover would increase by 33%.

In total, the textile industry accounts for 27% of the foreign exchange from exports and makes up three percent of India’s total GDP. The textile sector employs around 35 million people or about 21% of total employment in India. The promotion of high quality, handmade products represents a large, relatively untapped yet significant source of income for the country.

Grassroots efforts have also sprung up to “give handlooms some love.” The hashtag #ILoveHandlooms has been started by GoCoop, India’s first online marketplace for weavers and artisans. The group invites people to share their love for handloom products on social media by posting photos of their favorite items.

– Gina Lehner

Sources: The Hindu, India Times, Business-Standard
Photo: Your Story

, , ,

Bankers Without Borders: Global Integration

bankers-without-borders
The developing world is constantly in need of skilled professionals to not only provide immediate assistance but also to help train future workers so as to create a sustainable and self-sufficient community workforce.

For years, organizations like Doctors Without Borders, and Engineers Without Borders have been doing just that: on the one hand these organizations provide care and construct necessary structures respectively, but they also train and instruct local medical students and potential engineers.

However, as developing economies grow, there too needs to be financial assistance and instruction. Bankers Without Borders is attempting to propel developing countries into commercial modernity.

The mission of the organization is to enable citizens in developing countries to realize their full economic potential given the proper tools and training.

The organization was founded by a parent body called the Grameen Foundation. The Grameen Foundation was formed to help optimize other NGOs in terms of gross impact and overall efficiency.

In 2008, the group realized it could use its expertise to directly help those living in abject poverty.

Bankers Without Borders works as an independent organization and also teams up with local and global businesses to offer educational, financial, and consulting services across the developing world.

The organization utilizes nearly 19,700 business professionals, all of whom volunteer their time to help grassroots campaigns, small businesses, and individual investors and entrepreneurs.

As cliché as it is to say, knowledge is power, and anyone who posses it can reach a higher plane of potential. Those living in poverty certainly have the drive to become financially independent, and Bankers Without Borders is giving them the tools.

By encouraging modern, practical, and useful financial knowledge as well as helping to optimize new businesses, the organization is proving to be a huge relief to developing economies.

Bankers Without Borders hopes that one day those in developing countries can pass on the information learned to the next generation, thereby creating strong and self-sufficient modern economies.

– Joe Kitaj

Sources: Bankers Without Borders, Stand4, Doctors Without Borders, EWB-USA
Photo: Bankers Without Borders

,

Success for the FAO in Mozambique

FAO in Mozambique
In Mozambique, 95 percent of the country’s agricultural production comes from farmers owning small pieces of land. Previously these farms were for subsistence, but the recent U.N.’s Food and Agricultural Organization initiative has helped to improve post-harvest practices enabling farmers to sell their crops for profits.

Because the vast majority of farms in Mozambique are small-scale subsistence farms, the communities relying on them are more vulnerable to the shocks of events such as conflict and climatic change. In addition, because yields are low, these farms barely cover subsistence needs, let alone enable families to save any income for the future.

One-third of the Mozambique population is chronically food-insecure. Half a million children are reported as being undernourished and 43 percent of children under five are considered malnourished.

Issues contributing to the lack of food security in Mozambique include a lack of diet diversity, poor agricultural yields and high rates of HIV infection impacting worker productivity, thus affecting agricultural efficiency and production.

It should be no surprise then, that with the high levels of food insecurity and HIV infection in Mozambique, poverty is widespread. The country ranks 178 out of 187 on the UNDP Human Development Index. Mozambique is receiving significant amounts of aid from the U.N.; the country is also a U.N.

“Delivering as One” country, meaning that the country is part of a pilot initiative to improve the partnership between the U.N. and the national government.

As part of Mozambique’s Poverty Reduction Strategy, the country along with the U.N. are working to help farmers absorb less of a loss with regards to climatic shocks and protracted natural disasters.

One way to help farmers is to increase the length of time crops are able to be kept, eaten, and sold. The U.N.’s Food and Agricultural Organization (FAO) is teaching farmers how to store crops for maximum post-harvest storage. With the present technology, farmers lose an average of 30 percent of their harvest.

Currently, farmers sell the bulk of their crops immediately after the harvest. This is because farms in Mozambique often lack storage facilities to keep crops for a later sale, during which they could have a later price. By being able to control when crops are sold, farmers have greater potential to earn an income.

The FAO in Mozambique is teaching farmers about various post-harvest techniques; specifically, the FAO is training artisans in the construction of Gorongosa silos, which are durable, prevent crops from pests, and utilize locally developed technology. The Gorongosa silo is made from clay and mud. With proper care, it can last for twenty years.

This silo is a more valuable option than the traditional silos used in Mozambique, which offer little to no protection from pests or the elements. The Gorongosa silo keeps crops viable for ten months post-harvest, which gives more control to the farmers over their sales and reduces the need for chemical treatments.

This FAO initiative began in 2013 and intends to be a five-year project. Since its inception, 260 artisans have been trained in Gorongosa silo making in fifteen districts throughout Mozambique. Ultimately, the project hopes to train 20,000 farmers in the usage of Gorongosa silos and build 10,000 silos.

This initiative, in conjunction with other strategies to reduce HIV/AIDS in the region and promote economic growth, offers much to improve the livelihoods of those in Mozambique. With greater crop volume post-harvest, farmers can earn more of an income and reduce food insecurity for their families.

– Priscilla McCelvey

Sources: FAO, U.N., World Food Programme

Photo: Flickr

, ,

United Way of Windsor Focuses on Education to Fight Poverty

United_Way_of_Windsor
There is an almost universal understanding that a lack of education is almost always a ticket to poverty. From rural India to modern Japan, when children miss out on quality education, it sets them on a difficult path to poverty.

But the United Way of Windsor-Essex in Ontario, Canada is putting their foot down, and starting up a program to make sure low-income students get started off on the right foot. Twenty kids from underprivileged backgrounds are being placed in an immersive program set to get them off through school and off the poverty track.

Each of the youths, who start high school this month, have signed five-year agreements that commit them to finishing high school and keeping their grades up.

In return for doing well in school, the students receive special mentoring, after-school tutoring and counseling options, and perhaps most uniquely – $1,000 will be set aside each year towards each student’s post-secondary education.

A recent report by United Way found that roughly a quarter of county residents under 17 lived in low-income families, and more than half of those in single-parent households are living in poverty.

The report further found that family income has a strong effect on the “child’s cognitive, behavioral, and physical outcomes, as well a lesser relationship on social development.” Children from lower-income families, according to the report, are at a significant disadvantage compared to their higher-income peers.

Poverty places many challenges on young adults, including increased mental strain, the risk of poor nutrition, and, of course, reduced educational opportunities. According to Lorraine Goddard, CEO of the local United Way, many of the students in the pilot program come from “working poor” families in which the head of household is often struggling with multiple jobs to make ends meet.

“You become discouraged, you can be ostracized — kids give up,” said Goddard. The personal and financial support, which comes from individual donors, “builds a sense of hope in these kids,” said Goddard.

Participation in the On Track to Success program offers participating students a reprieve from some of the stresses of living in a low-income home, giving them more time and energy to devote to their education.

Even just completing high school generally allows individuals to earn an average of $10,000 more than someone without a diploma. Completing college earns an average of nearly $17,000 more than just a high school diploma.

By helping these students succeed now in high school and starting them with the funds to attend college, the United Way is putting these students on the path out of poverty.

– Gina Lehner

Sources: Windsor Star, We are United
Photo: tucsoncitizen

, ,

Benefitting from the Green Revolution in Africa

 

green_revolution_in_africa
A Green Revolution is the process of renovating agricultural practices, techniques and equipment that results in more prosperous and successful agricultural production. The first Green Revolution occurred in Mexico in the 1940s and the agricultural modifications used to spur the revolution spread worldwide in the following decades.

Green Revolutions are made possible through mechanized equipment and the use of irrigation and fertilization. Prior to many Green Revolutions countries such as Mexico and the United States were not producing enough crops to feed their citizens so they were forced to import products.

In the 1940s, the U.S. imported more than half of its wheat. However, after undergoing their Green Revolution they were able to produce a significantly greater supply and were not only able to stop importing wheat but also became wheat exporters. Cutting the cost of importing and generating a profit from exporting.

While Green Revolutions were sprouting up across the world, Africa became one area that was largely excluded from the benefits of revolutionizing agriculture. The lack of a Green Revolution in Africa can be directly tied to the overwhelming level of poverty throughout much of the African continent and especially in Sub-Saharan Africa.

Roughly 400 million people in Africa live in poverty and the majority of them live on farms. African farmers face poor soil, unreliable water supplies, restricted access to markets, insufficient access to finance and credit compounded by little government support.

Without a shift in the farming techniques and tools used throughout African countries, farmers will continue to struggle to grow enough crops to earn a living wage or feed their fellow countrymen.

Some countries are starting to show signs of Green Revolutions and there are many organizations, such as AGRA, that are working to assist in this process; but with so many people lacking food and an adequate income, an agricultural boost could be a major step towards decreasing the striking poverty levels throughout Africa.

AGRA is an organization that has developed and implemented several programs designed specifically to increase African agriculture. They currently work within 17 different African countries with programs to improve soil health, market access and policies and advocacy for farmers.

A Green Revolution in Africa could allow countries to gain economic stability, decrease food insecurity and empower farmers to not only feed their own countries but the world. Turning a country from an importer to an exporter can unlock potential and generate incredible economic progress.

– Brittney Dimond

Sources: AGRA, About, Huff Post,
Photo: thedailyeye

, , ,

From Millennium Development Goals to Sustainable Goals

From Millennium Development Goals to Sustainable Development Goals
The final report of the Millennium Development Goals (MDGs) says it has been the most successful anti-poverty effort in history. But despite significant gains, there are many global poverty issues that still need to be addressed. These include sanitation, gender equality, maternal and children’s health, and access to family planning, among others.

After 15 years, the transition from MDGs to the Sustainable Development Goals (SDGs) begins. The new goals will be adopted this September at the United Nations Sustainable Development Summit, which will provide a guideline for policy and funding for the next 15 years. There are set to be 17 goals and 169 indicators to measure the progress of these goals.

Among the proposed goals are the following:

  • No poverty
  • Zero hunger
  • Good health and well being
  • Quality Education
  • Gender Equality
  • Clean Water and Sanitation
  • Affordable and Clean Energy
  • Decent Work and Economic Growth
  • Industry, Innovation and Infrastructure
  • Reduced Inequalities
  • Sustainable Cities and Communities
  • Responsible Consumption and Production
  • Climate Action
  • Life Below Water
  • Life on Land
  • Peace and Justice, Strong Institutions
  • Partnerships for the Goals

The goals were conceived through a collaboration of the UN Development Programme (UNDP) and the UN Development Group (UNDG), which undertook an unprecedented global conversation among a diverse group of stakeholders over the last three years. Stakeholders included women, young people, people with disabilities, the private sector and all levels of government.

For example, the UN’s online My World Survey, which asked participants to rank their six highest priority issues, gathered the ranked priorities for the future of 7.3 million people.

In addition, the UNDG collected the perspectives from over one million people on “the world we want,” eliciting 88 national consultations and input on 11 thematic dialogues.

“As member states consult on the shape and content of a successor framework to the Millennium Development Goals (MDGs) beyond 2015, it is hoped that the opportunity to listen to these voices will contribute to reaching consensus on what is needed to move towards a common sustainable future,” states the World We Want website.

Partnerships will be key to realizing the proposed goals. Some of the important players that will assist in partnerships and collaboration between different entities are the Department of State’s Office of Global Partnerships, which will work with public and private sectors. The U.S. Agency for International Development will work with corporations, foundations, NGOs and others in developing countries through the Global Development Alliance.

Looking ahead, the need to work together across stakeholder groups is paramount. “World leaders have an unprecedented opportunity this year to shift the world onto a path of inclusive, sustainable and resilient development,” said Helen Clark, UNDP Administrator. And the message from the global conversation was clear: People want to be involved in the process of accomplishing these goals and to hold governments and businesses accountable for their promises and commitments.

– Paula Acevedo

Sources: Millennium Development Goals Final Report, Devex, United Nations Development Programme
Photo: Flickr

, , ,

UN Report: Overall Global Poverty Has Dropped Dramatically

z1-thumbs up
The U.N.’s 2015 Millennium Development Goals Report, which was released earlier this month, has published findings that show a sharp improvement in overall global poverty.

The U.N.’s report highlights the progress that has been made since their Millennium Development Goals were first established in 2000. This plan, which set targets and timeframes for how to make an impact in global poverty by 2015, has ultimately been remarkably successful.

“What the goals did, by prioritizing and focusing, was actually put together major international donors, civil society partners on the ground, national governments focusing on the same sets of issues,” Mark Suzman, a U.N. official, told NPR. “And that allowed for a focusing of both policy change and resources and attention.”

The report highlights a number of significant changes that have been made since its inception over a decade ago. According to the report, the amount of people living in extreme poverty has dropped to less than half of what it was in 1990, from 1.9 billion to 836 million. The report also points out that overall primary school enrollment in developing regions has reached 91 percent.

“The report confirms that the global efforts to achieve the goals have saved millions of lives and improved conditions for millions more around the world,” said U.N. Secretary General Ban Ki-moon.

The report doesn’t shy away from the work that still needs to be done, however. The report’s findings also include the fact that around one billion people still defecate in the open and 28 percent of children in South Asia younger than five can be classified as “moderately or severely underweight.”

“These successes should be celebrated throughout our global community,” Ki-moon added. “At the same time, we are keenly aware of where we have come up short.”

– Alexander Jones

Sources: Aizenman, Economic Times, Sengupta

,

World Bank Finances Poverty Reduction Projects in Laos


poverty_reduction
On August 17, the World Bank signed an agreement with the Lao People’s Democratic Republic to finance three projects aimed at increasing the efficiency and reliability of electricity, facilitating quality health and nutrition for women and children and building necessary infrastructure, such as roads, health clinics, schools and drinking water systems.

The World Bank has approved a US$68 million loan, which will be divided among the projects. The Power Grid Improvement Project will receive the greatest sum, US$30 million, with the Health and Nutrition Development Project and Poverty Reduction Fund II Project endowed with US$26.4 million and US$11.6 million respectively.

Although Laos has successfully provided most citizens with electricity, there are still problems. After a distribution loss in 2014 of 24 percent, greater than the 13 percent national average, Laos’s Xaythany district of capital city Vientiane has become the target area for the Power Grid Improvement Project.

The experience of increasing electricity efficiency will provide a building block, serving as a jumping off point for further improvements across the country.

With the Health Governance and Nutrition Development Project, the Lao PDR government aims to bolster women and children’s healthcare by providing free services. If successful, the project will reduce the instances of stunted growth and wasting from lack of nutrition. In order to accomplish better childhood nourishment, the program will promote breastfeeding.

Also on the agenda is developing a communication strategy that will effectively promote healthy child and infant feeding practices. Along with nourishment, maternal mortality will be targeted by means of providing better access to family planning resources and antenatal care.

The project also hopes to increase the number of births facilitated by a skilled health worker.

Through the Poverty Reduction Fund II Project, the Lao PDR government will work to establish infrastructure that serves the country’s marginalized communities. Schools are of particular note, as UNICEF reports that of Laos’s poorest 20 percent, only 5.3 percent are able to attend early childhood education.

Construction of drinking water systems is also important. At present, nearly 40 percent of rural inhabitants don’t have access to improved drinking water sources.

These projects are expected to substantially contribute to Laos’s development, building upon the country’s past poverty reduction success.

– Emma-Claire LaSaine

Sources: World Bank, UNICEF

Photo: Flickr

, , , ,

How the UN Fights Global Poverty

How the UN Fights Global Poverty2015 represents an important year for the United Nations to eradicate extreme poverty and hunger.

Among the goals that the United Nations has to eradicate poverty and hunger are: to reduce by half the amount of people that make less than $1 per day, accomplish employment and work for everyone including minorities such as women and to reduce by half the amount of people who are suffering from hunger.

The United Nations partners with different organizations and foundations in order to achieve these goals to eradicate poverty.

The Zero Hunger Challenge, the Scaling Up Nutrition (SUN) Movement and the UNDP-IKEA Foundation are three movements that the United Nations are partnering with.

1. Zero Hunger Challenge

U.N. Secretary-General Ban Ki-moon gives the invitation to every country to work for the future, a future in which every person has adequate nutrition and doesn’t lack food.

The Zero Hunger Challenge involves having no stunted children, 100 percent access to adequate food, sustainable food systems, 100 percent increase in smallholder productivity and zero food waste.

According to this challenge, the investment in agriculture, rural development and equality of opportunity helps to eradicate hunger.

This challenge promotes different strategies and cooperation in order to strive for results that combat hunger.

2. Scaling Up Nutrition (SUN) Movement

The principle of this movement is that everyone has the right to good nutrition and food. This movement is supported by donors, people from the government, the United Nations and various others.

This movement seeks to address malnutrition by activities such as implementing programs and collaborations.

The principles of engagement are to be transparent and honest about the impact that collective action has, bring solutions that can be proven and interventions to scale, have a commitment to support the rights and equity of all human beings, resolve conflicts if they arise, be responsible so stakeholders can feel collectively accountable to the commitments, establish priorities and be communicative toward what works and what doesn’t.

3. UNDP-IKEA Foundation

This is a foundation that is benefiting 50,000 women from India.

This foundation has helped 9,000 dairy producers to form a company through provided financial literacy training. Profits also double within a year through the participation of the members.

The United Nations also contributes with other organizations, such as the UNDP and Brazil’s Natura Cosméticos, which brings training to beauty advisors in areas that vary from direct sales to customer training.

It is clear that the United Nations uses different methods to obtain results in the different humanity issues that it focuses on.

While they address different issues such as climate change, terrorism, food production, human rights, health emergencies and many others, global poverty and the eradication of extreme poverty and hunger is under the Millennium Development Goals that the United Nations has, and partnering with different associations, movements, organizations and foundations has resulted in a way to reach for success in addressing these issues in the year of 2015.

– Diana Fernanda Leon

Sources: United Nations 1, United Nations 2, Scaling Up Nutrition
Photo: Flickr

, ,

Development Impact Bonds: Investing in Poverty Reduction

Development Impact Bonds for Investing in Poverty Reduction- BORGEN
A relatively new strategy in guiding private money toward poverty reduction are deemed Development Impact Bonds, or DIBs. DIBs differ from traditional financing for poverty reduction in a few key ways.

First, rather than an aid agency or philanthropist giving money for a certain goal, like increasing educational attainment for girls in a developing country, private investors provide the money with an expectation to make a profit. As with any investment, risks are an inherent part of the equation.

The way that the investors recoup their investment is the principle of outcome-based returns. If a certain project hits its goals, then the investors get their initial money plus whatever interest was agreed upon in the contract.

For example, a program that trains job seekers would not get money for the number of people trained but by the number of people that graduated from the program and held jobs for a certain amount of time. If successful, investors’ profit comes from a philanthropic organization, aid agency or the government that received the benefits of the program.

What this does — and the second way DIBs differ from traditional development program financing — is to take the risk off the hands of the constrained budgets of aid agencies. If, unfortunately, the program fails, then the aid agency or government responsible for repayment is off the hook and the investors are left empty handed. However, this risk sharing allows for more programs to have a chance.

Thirdly, the outcome-based principle allows allows for more flexibility in meeting program goals. Rather than be burdened with a predetermined process imposed by the donor, the program can be innovative and work within the context of the local environment.

This allows frees up space for local entrepreneurs. They know the area, the culture, and have a better idea of what will and will not work best. The flexibility in meeting targets not only incubates different and novel ideas, it incorporates locals and their knowledge better than traditional funding.

While these differences make DIBs attractive, the management and transaction costs may be prohibitively high. The novelty of the mechanism and uniqueness of each contract, together with the infant stage that this industry is in are what contributes to these costs. If successful, over time, a streamlined process and proven results will reduce the costs and increase the uptake.

DIBs have potential in the areas of global health, education, agriculture, water and sanitation, housing and the environment.

Investors interested in creating a positive social impact with their money now have a new option. Savvy investors may also view these investments as laying the groundwork for future business opportunities in the developing economy.

– John Wachter

Sources: Conscious Company Magazine, EcoEnterprises Fund, The Guardian 1, The Guardian 2, Instiglio, JP Morgan Chase
Photo: Flickr