Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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The Rise of Supermarkets in Africa

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Customers engage in heated negotiations over tomatoes and beans, chickens cluck loudly, and a thick cloud of smoke surrounds tables. These tables sit on a dirt road, as meat rots in the heat. At this Zambian market, every farmer can sell a product and every customer can barter for a more affordable price.

And, yet few miles from the Bauleni market, customers stroll the aisles of a local Pick ‘n Pay.

The rise of supermarkets in Africa holds the promise of dramatically reducing poverty this region. These stores attract both farmers and customers. For farmers, this business offers a more reliable – and higher – income.

More than sixty small farmers currently produce food for a local Zambian Pick ‘n Pay. Agriculture dominates the economy in Zambia, providing more than 60 percent of the jobs.  The manager reportedly receives five or six calls a day from local farmers. To ensure quality products, the company visits each farm, checks the water supply and offers further training.

These chains also offer men and women the opportunity to work in the store. For instance, women often chop and package food for the shelves.

Large commercial farms, however, pose a threat in some African economies. In Zambia, the Farmers Union holds significant political power, and lobbied the government for fair opportunity in the industry. The government negotiated with the supermarket chains and as a result, set the requirements for companies in the region. Chains like Pick ‘n Pay must purchase at least half of the products from Zambian suppliers.

In other nations, though, small farmers face less government assistance. In Lesotho, more than half of the two million residents farm. Yet these supermarket chains import an estimated 99 percent of goods from large South African businesses.

A small minority benefit from this current supply structure. If farmers live more than a few miles from the supermarket, participation is not feasible.  Many do not have the refrigeration or transportation capabilities to meet the demands of a partnership. To include these farmers, companies must continue to expand or provide transportation.

One chain, Shoprite supermarkets, increased sales by 28 percent in the year. This chain established 47 new African stores, primarily in Nigeria and Angola. The expansion of may benefit or harm small farmers; more stores offer greater opportunity to sell produce, but also infringe on land traditionally used for farming.

Alone, small farmers cannot meet the quantity or quality demanded by these chains. However, those near a store partner to produce goods for a Pick ‘n Pay or other business. For instance, nearly sixty farmers consolidate produce in an independently-owned storehouse. Men and women from across the region deliver tomatoes, beans or onions in trucks – at times, wheelbarrows – to contribute to the business.

To continue to profit, these South African chains must tailor goods to the economic status of customers. For instance, customers in the cooper belt of Zambia purchase luxury chocolate bars or a sack of maize, a working class staple. The chains must offer a wide range of products, depending on the income of the region.

Six African nations rank among ten-fasted growing economies in the past decade. These supermarket chains help farmers capitalize on existing agriculture, offering a more secure income to those in poverty.

– Ellery Spahr

Sources: Marketplace, The Economist
Photo: Boag World

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Poverty in Uruguay: A Success Story

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The number of Uruguayan citizens living below the poverty line of less than $1.25 a day has halved since 1990. This drastic reduction in poverty in Uruguay means the South American country has successfully achieved the first of the United Nations Millennium Development Goals.

In 2012, the rate of poverty in Uruguay, defined as those earning less than $1.25 a day, decreased to 12.4 percent of the overall population. Uruguay’s Minister of Social Development, Daniel Olesker, points to labor and health reforms to explain these achievements.

Ever since the 2002 economic collapse of its neighbor, Argentina, Uruguay has slowly struggled its way out of indigence. In 2004, the poverty rate hit a high of 39.9 percent and has steadily decreased since due to efforts on behalf of the government to provide more funds for social inclusion programs.

In early 2005, the then-President of Uruguay, Dr. Tabaré Vasquez, revealed a two-year Emergency Social Program to aid the most vulnerable members of Uruguayan society. The program addressed pressing issues such as food, shelter, health, work and education for the most destitute in Uruguay.

Other programs aimed at reducing poverty in Uruguay include a family allowance program wherein “vulnerable” families are given a subsidy of around 700 pesos per month, a sum equal to about $31. Families in more extreme conditions may receive up to double that amount.

As a result of these reforms, the number of homeless people living in Uruguay fell to .5 percent of the population. Despite the success of these public policies, it continues to elude the segment of the population in the lowest rung of the income distribution.

The current President of Uruguay, José Mujica, is known as a champion of the poor and sets an example for citizens of Uruguay by living modestly. He donates 90 percent of his income as president to charities working on housing for the poor and lives on a small farm outside Montevideo instead of the presidential palace.

– Jeff Meyer

Sources: Presidencia, The Guardian, El Mundo, Xinhuanet, La Republica
Photo: IPS

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Clean Streets: Road to Entrepreneurship in Haiti

Throughout the developing world, infrastructure insufficiencies often create barriers for aspiring entrepreneurs. However, these shortcomings can also provide the platform for innovative and sustainable business opportunities.

Such is the case for entrepreneurs like Edouard Carrie, who started his company Environmental Cleaning Solutions S.A. (ECSSA) as a way to clean up Haiti’s streets and generate income. Founded in 2010, the company’s mission is simple yet profound: “to change a nation through recycling.” Via its material recovery facility in Port-au-Prince, ECSSA aims to collect over 80 tons of recyclable products per day.

Not only does it positively impact the environment, increased waste management also helps Haiti’s lowest income citizens.

For example, individuals can increase their income by collecting recyclable materials and thus afford schooling for their children, healthcare or other necessities. In addition, the various collection centers create jobs around the region.

The start-up has had great success in the three years since its conception. According to USAID, “ECSSA has grown to provide extra cash to over 6,000 Haitians who deposit bags of discarded bottles at 65 collection points throughout the Port-au-Prince region.” Furthermore, the company has shipped nearly 300 million plastic bottles to other countries for additional processing to create other products.

ECSSA’s growth would not have been possible without the support of both USAID and the Pan American Development Foundation (PADF).

PADF sponsors the Leveraging Effective Application of Direct Investments (LEAD) Business Plan Competition, a grant program that assists small and medium enterprises in finances, business development and access to capital. LEAD operates in Cap-Haitien, Saint-Marc and Port-au-Prince with a targeted focus on “industries and businesses with the greatest potential to create jobs, including construction, tourism, agribusiness and alternative energy.”

Outside assistance – such as that from LEAD and USAID – has allowed ECSSA to thrive and transform the landscape in Port-au-Prince.

“My company now has the capacity to increase its individual collectors from 6,000 people to up to 20,000,” Carrie said. “Additionally, the increase in collection points and processing capacity provide entrepreneurs the opportunity to grow their own businesses by serving as intermediary plastic collectors and suppliers for ECSSA.”

Not only cleaning the streets, ECSSA is clearing the way for sustainable environmental and business development throughout Haiti’s capital city.

– Mallory Thayer

Sources: USAID, Leveraging Effective Application of Direct Investments, Environmental Cleaning Solutions S.A.
Photo: United Nations Photo

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Spreading Agricultural Technology to India’s Poor Farmers

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It is an accepted fact that poverty is the root cause of malnutrition. Over 42% of the Indian population lives on less than $1.25 a day. However, if farmers could increase their output and earn more from what they already have through the use of innovative technology, food insecurity could decrease and that same dollar and a quarter could go much further.

Technology can help farmers to augment their knowledge of which crops to produce for the best return, find the most effective farming practices and make plans based upon weather forecasts.

The e-Choupal initiative is one way that technology is being used to give farmers the information they need to be more successful. The aforementioned benefits of technology are all accounted for on the e-Choupal platform, even enabling buyers to come to the farmers instead of having to haul the produce to market, where oftentimes traders manipulate the market in order to exploit the farmers out of their proper earnings.

The initiative also provides access to storage services and agricultural equipment in addition to other important assets for rural farmers. The e-Choupal network has expanded to 6,500 centers synchronizing the efforts of 40,000 villages to produce greater quantities of better produce and profit.

In this same vein of increased technology and higher profits, organic farming is a possible venue poor farmers could explore. Organic produce consistently garner high prices, the demand for which is only rising. The only constraints are the ones that the e-Choupal network is already helping to eradicate, at least in India, including lack of technical expertise and insufficient market knowledge.

Another example of innovative agricultural technology is the use of drip-irrigation, which cuts water use by 40%, and saves the equivalent of 10 million households water expenditures per year. Much in the same way, the e-Choupal initiative has created a network where over 25,000 small farmers have organized a supply chain that has augmented their average annual incomes by a very significant $1,000.

India is a country of fertile lands and capable farmers. Technology is the catalyst that promises to drive the more than 400 million people living on less than $1.25 a day out of poverty.

– Jordan Schunk
Sources: The Huffington Post, New Indian Express, Rural Poverty Portal
Photo: The Fourth Revolution

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Heavyweight Helps Syrian Refugees

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Evander Holyfield, former world heavyweight boxing champion, is taking on an even greater role in helping displaced communities of the Syrian refugee crisis.

On November 13, Holyfield announced that he would be working to aid the alleviation cause for an estimated of 6,500 refugees fleeing from the war-torn Syrian nation, those of whom have settled in Bulgaria. During the announcement, Holyfield noted, “Somebody helped me and that gives me the opportunity to help someone else.”

The refugee crisis that has taken shape out of the Syrian civil war has become staggering. It’s estimated that 9 million Syrians have been displaced out of a population of 23 million.  Syrians are settling in nearby countries such as Jordan and Turkey, most of where large camps have drawn the majority of foreign assistance — muting attention for the relatively small amount that has ended up in Bulgaria.

Holyfield and the Global Village Champions Foundation, the organization where he works as a Goodwill Ambassador, hope to raise awareness and deliver support for these refugees. To future add to the impact of celebrities bridging successful traction to raise awareness, the head of the Global Village Champions Foundation is musician, Yank Barry, from the 1960s band “The Kingsmen.”

The pairing might seem odd, but they are united in their hope to make the lives of the Syrian refugees at least somewhat easier.  In an interview with CNN, Holyfield stated, “at some point in time, when you leave this earth… they’ll say: What did you do for the least of them?”

Yank Barry may not be as well known in modern pop culture, but he has been actively philanthropic in recent years.  Barry founded the Global Village with Mohammed Ali in 1995, and they worked together until Holyfield took Ali’s place within the organization in 2012.  Since the founding of the organization, it has sent out 900 million meals to the needy around the globe and, according to Barry, including “5,000 tons of food to (Syrian) camps” since last year.
https://www.youtube.com/watch?v=VEInSPRIVDY

During the 1990s, Holyfield’s biggest worries were Mike Tyson’s left hook and how he would retake a heavyweight championship belt that he ended up winning five separate times.  Now, he has taken it upon himself to help the world community that he once entertained.  While recent reports have claimed that Holyfield has not retained the fortune he accumulated over the course of his boxing career, his reputable standing as a celebrity can still help causes for those that never had the opportunities he did.

While the help from private foundations like the Global Village is welcomed and inspiring for others to emulate, the global community still has plenty of work to do.  The UN says that the number of Syrian refugees registered in various EU countries ranks over 62,000 with more likely to come.  With so many of them looking for ways to get by, the hungry continue to appreciate the influencers like those in the U.S. for the help that such refugee communities could barely survive without.

– Eric Gustafsson

Sources: Fox News, CNN, Huffington Post
Photo: Vintage 3D

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What U.S. Foreign Aid Does for Education

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The money the United States gives out in foreign aid is usually focused in areas of direct impact, such as food to famine-stricken countries or in disaster relief efforts. Some of the lesser-known impacts are in the field of education. In particular, scholarships in foreign aid have allowed students to attend universities throughout the United States which provide more opportunities than would schools in their home countries.

This form of foreign aid is, however, not unique in the Western world. In fact, just as the United States lags behind in the overall standings for foreign aid, it falls behind its Western allies in funding for foreign scholarships as well. France leads all nations in foreign scholarship aid with 18% ($1.36 billion) of its foreign aid going to education, with Germany ranking second, at 13% ($1.05 billion), according to University World News. The U.S., on the other hand, only gives about 3.5% ($805 million) of its own foreign aid to scholarships.

U.S. foreign aid is directed to a number of other areas, but the one area that outshines all others is foreign military assistance. As it stands, roughly 38% ($14 billion) of the U.S. foreign aid budget goes to foreign military assistance. Comparing this to the budget given to foreign scholarships shows where the aims of U.S. foreign policy lie, as they push their military agendas overseas.

The military agenda of the United States looks toward the promotion of friendly democracies in places that the United States does not currently have allies. This can be seen in the United States invasions of Afghanistan and Iraq, as well as support given to rebels in Syria and Libya.  In hopes of achieving these goals, the United States pumps dollars towards friendly foreign militaries in hopes that they will create functioning democracies, with informed and supportive citizens.

In a recent Seattle Times Article, columnist Thomas L. Friedman took aim at this disparity by comparing the figures of foreign military aid for Egypt ($1.3 billion) and foreign scholarships for Jordan ($13.5 million). Friedman wrote that, “merit-based college scholarship program promote(s) tolerance, gender and social equality and critical thinking.”

These qualities of ideal democratic citizens that the United States is hoping to instill in foreigners would be much better fostered through foreign education aid, according to the first-hand observer, Friedman. While Egypt remained in a state of flux during 2013, Jordan has dedicated itself to working towards a state of democracy.  The comparison put forward by Friedman is an informative one for a casual observer, as one can see the benefits that current education aid gives and the potential of what the United States could do.

– Eric Gustafsson

Sources: National Priorities Project, University World News, Seattle Times
Photo: Giphy.com

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Catalysts for Change

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A first of its kind, Catalysts for Change, an innovative and interactive online game, was run by the Rockefeller Foundation and the Institute for the Future last year in the beginning of April. The game prompted participants worldwide to discuss and come up with ways to battle the plentiful issues of poverty. The game itself was designed around four catalysts: new evidence, new capacities, new rules and new stories, all of which contributed to the card-based gaming platform.

Players could share ideas through Positive/Critical imagination cards – these had the potential to be built on by others through Momentum, Antagonism, Investigation and Adaptation cards. Leaderboards were also created, displaying points players had earned through using and gaining said cards. These could furthermore be categorized as Scenario Fail, Common Knowledge or Super Interesting based on the players’ personal perception of presented ideas. Achievements spanning across seven levels, going from Inspired to Legend, were available for unlocking before being recorded in player profiles.  Each card played was then cataloged by category, available for public viewing on a special dashboard.

A game blog recorded all progress and presented new missions and challenges in real time. Two weeks before the actual game start, several preparations were made including social media advertising and buzz-building, recruitment, email exchange between coordinators across the world and various sponsor partnerships which led to further awareness among people. Most follow-up cards played were either Investigation or Momentum; of the top-tier, Critical versus Positive imagination were played, the latter being more than twice as frequent. Around 53% of all cards had follow-up cards attached, spanning overall very optimistic and fruitful discussions. As expected from discussions concerning poverty, themes such as education, work and community were amongst the most common. A few top innovative ideas that were brought up include:

–  Alternative economic systems or a universal currency
–  Empathy, i.e. teaching children from an early age to perceive worldly problems
–  Entrepreneurial education and new business funding as a common endorsement for all
–  Socially engineered ways around corruption
–  Sharing to eliminate waste

Although the aim of the game was not to implement any policy for actual poverty reduction, it managed to fulfill its purpose: to motivate and bring together people in their desire to make a change. Several of the players, engaged among one another, even discussed ways they could contribute beyond playing the game, such as starting a non-profit together centered chiefly around their ideas. The attention on social media (Facebook and Twitter) that Catalysts for Change received helped further spread the cause. Thoughts shared by players are still accessible on the website today, providing ‘food for thought’ for anyone hungry for making a difference. Although the game spanned for only 48 hours, it attracted 1,616 players from 79 different countries who used a total of 18,207 cards.

– Natalia Isaeva

Sources: The Rockefeller Foundation: Catalysts for Change, Institute for the Future
Photo: Vimeo

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Telecommute Internships at The Borgen Project

Are you seeking real world experience working as part of a news content team? Looking to build skills working as a journalist, writer, editor, or public relations/visual editor? Are you an independent self-starter? Does working from your personal computer appeal to you? Would you like to research, advocate, and produce content for a cause that is aiming to end global poverty?

If you said yes to the questions above, you may be a good fit for an telecommute internship with The Borgen Project. The Borgen Project is an innovative humanitarian organization downsizing global poverty located in Seattle, Washington. The Borgen Project volunteer network extends to 190 cities, and includes celebrities, political leaders, and a growing number of passionate individuals.

Currently, there are four open telecommute internship positions for The Borgen Project: Journalist, Writer, Editor, and PR/Visual Editor.

The time commitments for the internships vary depending on internship type. While The Borgen Project requires a 12-week program for journalists and writers, editors and PR/visual editors are required to spend 260 hours in total, and 15 hours each week.

Access to a computer is vital, as you will be communicating back and forth with supervisors at Seattle Headquarters, and fellow team members across the nation. Attendance to The Borgen Project national conference call from 5pm-6pm PST every Monday is also required.

Content workload varies depending on the internship type. Writers must complete 4 blog posts/magazine articles each week, journalist write 3 in-depth articles each week, PR/visual editors find, tint, and resize images to meet website criteria, and editors edit and approve articles submitted by content team writers. While each internship fills a certain role for The Borgen Project, all interns must spend 2-3 days assisting with fundraising, share Borgen Project articles and news via social media, meet deadlines, and effectively communicate with supervisors.

Interns are given the freedom to choose their own schedule within the required time commitment guidelines. The first week of the internship entails an online training curriculum that clearly lays out your role, what is expected of you, and eliminates any ambiguity about what you should be doing. Supervisors are supportive and can respond to any questions you have regarding fundraising, article content, article style, deadlines etc.

Additionally, interns have the opportunity to meet each other (people from all walks of life), network, and work within a community that extends across the nation. Internet and social media allow us to extend the values and mission of The Borgen Project across many networks.

View telecommute internship openings.

– Laura Reinacher

Sources: The Borgen Project
Photo: Smallbiz Technology

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North-African Economies

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Rural poverty in North Africa is similar to rural poverty in South Africa, though the national poverty line varies dramatically. According to Rural Poverty Portal, this includes the differences between 6% in Tunisia and 90% in Somalia. North-African economies are in dire straits.

Poverty-ridden people, they said, “constitute about one third of Tunisia’s poor population, and about three fourths of Somalia’s poor.” However, poverty in Northern Africa is still concentrated in rural areas.

This has deep causes such as the limited availability of “good arable land and water,” and “the impact of droughts and floods.” Conflict has similarly disrupted agriculture and thus intensified poverty, especially in Somalia and Sudan.

Algeria is a country in Northern Africa whose economy is dominated by the state, according to the CIA World Factbook.

“Hydrocarbons have long been the backbone of the economy,” the Factbook explains, “Accounting for roughly 60 percent of budget revenues, 30 percent of GDP (gross domestic product) and over 95 percent of export earnings.”

This hydrocarbon exportation has brought relative “macroeconomic stability, with foreign currency reserves approaching $200 billion.”

Despite Algeria’s relative stability, things such as transportation and a stable social infrastructure remain obstacles for Northern Africa. High rates of illiteracy, especially among women, also negatively affect the economy.

Rural Poverty Portal furthermore illustrated that the northern region of the continent has “weak local institutions, poor integration with the national economy, and the migration of rural youth to urban areas.”

However, the urban areas in Northern Africa hold the most political influence. “Government policies and investments in the region tend to favor urban areas over rural areas,” they said.

Just south of Algeria lies Niger, a land-locked, Sub-Saharan nation. Though it shares a border with Algeria, a relatively stable African country, it has a very low income – less than $250 USD gross national income per capita, according to the World Bank Development Indicators as of 2005.

Moreover, CIA World Factbook states that Niger qualified for “enhanced debt relief under the International Monetary Fund program for Highly Indebted Poor Countries.” This significantly reduced Niger’s debt and annual obligations, and freed up funds for “basic healthcare, primary education, HIV/AIDS prevention, rural infrastructure and other programs geared at poverty reduction.”

The Factbook said that food security remains a problem in Niger, and is enhanced by refugees from Mali.

Sixty-three percent of the population lives below the poverty line, according to the most recent data which was gathered in 1993.

Northern Africa has a wide disparity between the very poor and the middle-class. Though some countries are more stable than others, education, food stability, access to clean water and social stability remain significant obstacles for the reduction of African poverty as a whole.

– Alycia Rock

Sources: Encyclopedia Britannica, BBC, Rural Poverty Portal, Central Intelligence Agency
Photo: Reuters

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American Sentiment Toward Global Poverty

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Though the United States is one of the wealthiest nations in the world, the country ranks poorly when it comes to aid and contributions to global poverty. In a ranked global list of 27 developed countries, the United States tied for 19. This gap in aid can be explained by the belief that Americans care more about helping people geographically near them than helping people who live further away.

A study conducted by the Center for Global Development established a “Commitment to Development” Index which measures the contributions of developed countries to less-developed nations around the world. The study also splits aid into 6 different sectors in order to account for every kind of assistance given by countries.

The security sector of the study, for example, deducts points from countries that give weapons to unstable or tyrannical governments. The study concluded that the United States does less than the average developed country to help underdeveloped nations, resulting from the lack of attention given to people residing in further countries.

Furthermore, a study conducted by a PhD student at Stanford found a clear correlation between citizens’ support for foreign aid and the amount of aid given by their country. In the United States, many people are very generous and give public and private donations at high levels; however, these donations are directed to fellow Americans. As it stands, a majority of Americans support donating to their fellow citizens and cutting aid in the form of food and money to foreigners.

Both studies go far in explaining the low levels of aid given by the United States of America to foreign nations. In order to increase the amount of aid given to foreign nations, the United States will have to change its attitude, thus allowing for a positive affect on the amount of aid donated overseas.

– Lienna Feleke-Eshete

Sources: Think Progress, Center for Global Development