Archive for category: Poverty Reduction

Information and stories about poverty reduction.

,

What Is the Poverty Trap?

Poverty_Trap_Vicious_Cycle_Poor_Unable
In biology, there are two feedback loops – positive and negative. A negative feedback loop works by Effects which disrupt the Cause; for example, cold temperatures prompt the thermostat to activate heating, which raises the temperature and therefore requires the heat to be shut back off. A positive feedback loop works in exactly the opposite way – more Effect produces more Cause which produces more Effect, ad infinitum; this regulates the production of Oxytocin in a woman’s body during pregnancy, and is only ended by the expulsion of the fetus from the mother’s body. The mechanism commonly called the poverty trap is a social positive feedback loop. And this is why it is so difficult to eradicate.

Unlike pregnancy, there is no terminal event which can tell social institutions and infrastructure, “Enough!” Poverty can endure forever; it is a stable state. Many conditions of deprivation can be tolerated once a person is familiar with the new sensation, and poverty is one of these. Furthermore, the system of poverty is complemented by a system of affluence, which also operates by a positive feedback loop. The richer an individual becomes, the more opportunities there are to increase that affluence. This is not to suggest that rich cannot become poor and vice-versa; merely that in capitalist systems, wealth has a tendency to accumulate, like gravity pulling particles in a vacuum slowly toward one another.

If no forethought is given to this positive feedback loop, as has been the case in America over the last decades, it can become nearly impossible for those at the bottom of the socioeconomic pyramid to reach the top. School is the exemplary case of needing money to make money – without a college education, and increasingly, graduate-level education, many job opportunities are simply out of reach. Loans exist, but conditions are becoming less favorable, and the standard repayment plan on a Stafford Unsubsidized Loan adds nearly 50 percent of the principal in interest over the course of repayment.

A favorite ideology of Americans is that popularized in the 1980s: pull yourself up by your bootstraps. Indeed, this is a critical piece of the solution; a capacity and willingness to commit oneself to improvement is a prerequisite to improvement. However, it also turns a blind eye to the fact that institutions are, by design, resilient to the whims of individuals. An institution which is dysfunctional for one individual is often functional for another. Those for whom institutions function well are understandably reluctant to see them evolve into something less favorable.

That said, in theory, an institution does not answer to those in the ruling party, but operates under mechanisms which dictate it serve the greatest number of people in the best possible way. The  legislation pushed by Franklin Delano Roosevelt during the Great Depression (the New Deal) and by Harry Truman after World War II (the Marshall Plan, the attempt to temporarily nationalize steel and coal businesses in Europe) was responsible for putting millions to work.

Simply put, the poverty trap is human in operation and institutional in design. Both must evolve if the trap is to be disarmed.

– Alex Pusateri

Sources: A Better World, Prospect
Photo: Zionadventures

, , , ,

State Street Foundation: Providing Sustainability in Poor Communities

State_Street_Foundation
The State Street Foundation is a unique organization that focuses on providing grants to deserving groups that offer services to the poor. By “actively engaging in our global communities,” State Street is able to empower impoverished people through education, affordable housing and small business programs. The company also assists businesses by offering financial guidance in investment, research and trading.

State Street mainly operates 25 countries; most of its programs are in Australia, China, Hong Kong, India, Japan, Singapore, South Korea and Taiwan. The organization’s vast number of volunteers and supporters work in low-income communities to create sustainable poverty alleviation projects. These volunteers worked 78,000 hours and completed 4,900 projects in 2010. Since its formation in 2001, State Street employees and alumni have contributed 430,000 hours and 15,600 service projects.

These projects vary based on the needs of local communities, but all have the goal of improving quality of life in these areas. State Street’s Supplier Diversity Program works with businesses owned by minorities and women to ensure that these small businesses have the same opportunities as other larger companies. Providing grants to these businesses helps them financially thrive, thus creating jobs and increasing economic growth for the entire community.

In addition to distributing local grants, State Street Foundation sponsors community fundraising events for charities the organization supports. In 2010, State Street donated $3.2 million to these charities. For these reasons, the company has won copious awards for its philanthropy, including the Custody Risk’s Mutual Fund Administrator of the Year and Transfer Agent of the Year (2013), Best Securities Financing House in Asia Asset Management’s Best of the Best Awards (2013), European Transfer Agent of the Year (with IFDS) in the 2012 Funds Europe Awards (November 2012) and numerous other awards since its founding.

State Street is a foundation devoted to helping impoverished businesses and communities and hopes to contribute to poverty alleviation, one region at a time.

– Mary Penn

Sources: State Street, AVPN
Photo: Time

, , ,

Why Female Education Fights Poverty

Female_Education_Fights_Poverty_Afghan_Girl_In_School
While providing equal education to girls is necessary from a moral standpoint, it is also essential for a more peaceful and poverty-free world.

Education affects the age at which women marry and have children. Therefore, until girls have equal access to quality education, maternal mortality, overpopulation, and other factors contributing to poverty will continue to terrorize our world.

In sub-Saharan Africa, and South and West Asia, child marriage affects 1 in 8 girls. By the age of 17, 1 in 7 females will have their first child. Since girls in these areas are not given access to education or job opportunities, they are often locked into these marriages, and forced to become mothers far before they are ready.

In the long run, these women can’t afford to take care of their children or even attain proper health services during labor. The line of poverty continues as children are born into impoverished families that are unable to help their offspring escape this cycle.

Providing women with a secondary education brings enormous benefits to both women and to the world. Educated women are empowered women. They can make their own choices and follow their own dreams. If girls receive a secondary education, 64 percent of them won’t get married while still attending school. By giving girls a chance to pursue their own future and making them aware of the risks associated with consecutive childbearing, the vicious cycle will finally reach its end.

The advantages in investing in female education are endless – for individuals, for the fight against poverty, and for lowering child mortality rates. The rise in female education between 1970 and 2009 prevented more than 4 million child deaths. With the Millennium Development Goals still met, perhaps this is an essential place for the U.N. to make a change.

– Sonia Aviv

Sources: Global Post, TIME, Huffington Post
Photo: The Guardian

, , , , , ,

Could GMO’s Help Prevent Food Shortages?

Genetically_Modified_Crops_Prevent_Food_Shortages
With the world population expected to double by 2050, food security will continue to be an increasingly complicated and important issue. More food will be needed to feed more people and, to preserve vital biodiversity sites, we’ll need to produce this additional food using land already devoted to agriculture. While there are many factors that could improve agricultural efficiency, genetically modified crops hold the most potential. Many scientists now believe that transgenic plants could help prevent or minimize future food shortages.

Transgenic plants are those that possess an inserted portion of DNA either from a different member of their own species or from an entirely different species. The inserted DNA serves some special purpose, such as allowing the plant to produce natural insecticides. Once the genes are transferred, they can be passed on to offspring through simple fertilization, allowing farmers to breed advantageous traits in their plants. Transgenic plants have proven extremely profitable in the developed world, accounting for a 5% to 10% increase in productivity, and reducing the cost of herbicides and insecticides.

Such methods could effectively increase productivity in the developing world, where a surge in food production is sorely needed. Developing countries, especially those in the tropics and subtropics, suffer severe crop losses due to pests, diseases, and poor soil conditions. In addition, a lack of financial capital often prevents farmers from investing in high quality seeds, insecticides, and fertilizers. Poor post-harvest conditions such as inadequate storage facilities and thriving fungi and insect populations also fuel crop loss. Currently, pests destroy over half the world’s crop production. Transgenic plants could provide an innovative solution.

Fortunately, bioengineering solutions can be easily adapted from one species to another, allowing one advancement in plant biotechnology to quickly produce many more. For example, insect-resistant strains of several important plant species have been produced using one specific endotoxin. Commercial production of insect-resistant maize, potato, and cotton has already begun. Plant bioengineers hope to use similar technology to create fruits that ripen more slowly, allowing for longer shelf lives and less post-harvest crop loss.

It is important to note that this technology has mostly been established with the developed world in mind. Therefore, adapting it for use in the developing world must be done carefully. For instance, many crops grown in the developing world are local varieties and have not been extensively tested thus far by plant bioengineers. Blindly replacing local crops with bioengineered varieties from the developed world could disturb deep social or religious traditions that are represented in the widely varied cultures in the developing world. Additionally, societies are more likely to embrace a familiar crop than a foreign one. Research and development in bioengineering must, therefore, adapt to include the crops of the developing world.

Although the globe produces enough food for everyone, people everywhere continue to die of starvation. With this unequal distribution in mind, it is imperative that, moving forward, small farmers in the developing world receive the same access to plant biotechnology given to large agribusinesses in the developed world. First-world corporations cannot be granted even more unfair advantages over small landholders in poorer nations, especially as global populations grow and food security becomes ever more scarce and important. As this technology is developed, it is up to us to share it with the developing world in order to minimize severe food shortages in the years to come.

– Katie Fullerton

Sources: Plant Physiology, Colorado State University
Photo: Tree Hugger

, , ,

Tax on Carbon Dioxide Emissions to Potentially Help South Africa’s Poor

Tax on South Africa Emissions
This year, South Africa has launched a new tax on carbon dioxide emissions in an effort to create a lower carbon future and a greener economy.

Finance Minister Pravin Gordhan has announced a Carbon Tax Policy White Paper that will describe the placement of taxes based on pounds of carbon dioxide emissions. Currently, South Africans already pay some unofficial carbon emission taxes, such as taxes on automobile emissions and electricity. However, the new carbon tax policy would introduce a new tax of 120 rands, or about 12 dollars, per ton of carbon dioxide equivalent.

The tax will be effective in 2015 and increase 10 percent between 2015 and 2020.

South Africa is one of the 20 nations that produce the most carbon emissions into the atmosphere. Increasing use of fossil fuels in recent years has led to rapid climate change. For developing or poor nations, the warming climate means that people are losing the ability to grow enough food.

In other places, environmental disasters bring ruin to land. Drying water sources means that women and children will have to walk farther and farther to find water. As carbon emissions increase, inequality and poverty only grow. Thus, it is imperative for nations such as South Africa to make a difference by reducing their carbon footprint.

The creation of a stricter carbon emissions tax means that the government, businesses, civil society and other stakeholders must have the same understanding of carbon emissions: it is something that needs to be eliminated progressively.

By enforcing taxes, the government of South Africa provides an incentive for companies and organizations to take up greener technologies. This would help to shift production from a high emissions approach to a new standard of a green technology.

Though the carbon tax sounds like a good way to fight environmental degradation, the tax could still negatively affect poorer households. The poor of South Africa spend significantly more of their income on food and energy. In some instances, these poor will eventually spend up to 40 percent more of their income on such basic necessities.

Furthermore rising coal-based electricity prices have increased more and more in recent years. This has put enormous pressure on low-income households. For these households that don’t have the luxury of spending freely on energy, a tax on carbon dioxide producing energy sources could be a great burden.

Moreover, there is also a worry that the carbon tax won’t be strict enough due to the possibility of exemptions. The proposed carbon tax provides a tax-free exemption threshold of 60 percent. When such exemptions exist, it is easy for carbon emissions to simply be ignored as groups or companies vie for exemptions. Exemptions mean that the people may be tempted to prioritize money over truly reducing the carbon footprint.

Perhaps the best way to think about this potential carbon dioxide tax is to consider poverty first. While the tax helps to reduce emissions, it can also generate billions of rands in revenue.

Additionally, it is important to note that greener technology can provide thousands of new employment opportunities for South Africa’s jobless.

– Grace Zhao

Sources: Mail and Guardian, BD Live, Times Live
Photo: The Guardian

, , , , , , ,

US Foreign Aid to Africa: What We Give and Why

us_foreign_aid

In 2012, the United States provided nearly $12 billion in official development assistance (“ODA”) to African nations. The ODA is allocated to education, health, infrastructure and economic development programs in recipient countries. Currently, the United States allocates foreign aid to 47 African nations and USAID operates 27 missions on the continent.

US Foreign aid to Africa began in the 1960s as many African nations gained independence and the United States sought strategic alliances to counter the influence of the Soviet Union. With the exception of disaster and famine relief, most foreign aid to Africa began to decrease with the collapse of the Soviet Union.

In the 2000s, President Bush more than tripled aid to Africa by establishing programs such as the Child Survival and Health Programs Fund as well as the Global HIV/AIDS Initiative.

Though foreign aid programs are designed to assist recipient nations with development, they also benefit the United States in a number of ways.

First, these programs help build strategic alliances and foster support for democratic transitions. It also stimulates Africa’s growth and development, which provides opportunities for increased trade and direct investment in the continent’s emerging markets.

But for all the benefits, foreign aid to Africa has no shortage of detractors. Many critics point out that much of the money allocated to Africa never reaches the people who most need the assistance. “Eighty percent of U.S. aid to Africa is spent right here in America — on American contractors, American suppliers, and so forth,” said George Ayittey, president of the Free Africa Foundation.

In more corrupt nations, politicians and civic leaders are often charged with misappropriating funds designated for the people. Others critics claim that foreign aid to Africa simply does not work—after 50 years of assistance, Africa still confronts the same issues.

But even critics would have to agree on one crucial point: foreign aid is an integral part of U.S. foreign policy. In Africa, aid programs support a large framework of social and economic assistance for developing nations.

Critics are correct that American companies and corrupt politicians siphon a large portion of foreign aid. But aid to Africa has also done much to improve infrastructure, bolster economic development and improve health care conditions for millions of people on the continent.

– Danial Bonasso
Sources: Foreign Policy Initiative, Washington Post, NPR, One.org
Photo: James Bovard

,

How to Prevent Poverty

How to Prevent Poverty
Understanding how to prevent poverty has been an issue of great concern both in the United States and across the globe. Countries like the U.S., in a position to prevent poverty in less developed nations, are particularly interested in determining the causes of poverty in order to effectively alleviate poverty at home and abroad. By understanding what it is that leads to impoverishment in specific communities and countries, poverty reduction efforts are more likely to prevent poverty all over the world.

Though poverty and extreme poverty, as terms, have been defined as living under a certain dollar amount per day, what causes poverty is often much more complicated. The World Bank defines global poverty as a pronounced and multidimensional deprivation in wellbeing. That is, what it is to be considered poor or impoverished depends on a number of different conditions and factors that vary from community to community. For example, one family may have the dollar amount sufficient to feed itself but lack adequate access to education or water.

Because poverty represents such a wide variety of conditions, how to prevent poverty is an issue that requires a complex understanding of the circumstances in which one is working. Not only that, effective poverty prevention and reduction strategies will necessarily include either a multidimensional approach or take place in a network of projects that strive to prevent or reduce poverty on various levels. For instance, Plan Canada, a Canadian-based charity organization founded in 1937, takes a five-step approach in its strategy to prevent poverty worldwide.

 

Plan Canada’s Tools for How to Prevent Poverty

 

  • Education – Providing a quality education to children will create positive change in a child’s life.
  • Healthcare – Adequate access to healthcare is essential to ensuring health and wellness.
  • Water and Sanitation – Prevention of disease in communities is largely dependent on adequate facilities.
  • Economic Security – Though economic growth is not required, economic security provides families with sufficient stability to count on a consistent family income.
  • Child Participation – Helping children learn their rights and engage in civic duties sets the foundation for a strong community.

The United Nations Population Fund (UNFPA) reports that slower population growth and investments in reproductive health and HIV prevention, as well as women’s empowerment and gender equality are also important steps toward preventing poverty. In fact, the UNFPA considers universal access to reproductive health information and services to be an “essential” condition to achieve the U.N. Millennium Development Goals by 2015.

How to end poverty is a complicated question, but significant research like that taken to synthesize the reports discussed above suggests that it is not an impossible question to answer. Quite the contrary, there are thousands of organizations across the globe working on just that question every day. Collaborative and coordinated efforts, in recognition of the diverse causes of poverty, will no doubt win the day. In the meantime, these strategies continue to develop in scope and sophistication.

– Herman Watson

Sources: The Borgen Project, Plan Canada, United Nations Development Programme, United Nations Population Fund
Photo: Soda Head

, ,

What is Poverty Alleviation?

Poverty Alleviation
Poverty alleviation aims to improve the quality of life for those people currently living in poverty. Another term that is often used is poverty reduction.

 

Innovation Leads Poverty Alleviation

 

Rudy De Waele, CEO of Nyota Media, a growth agency for entrepreneurs and start-ups in Africa, recently gave a speech at the Mobile Innovations at the OCE Discovery event in Toronto, Canada. His speech, “How Mobile Technology is Transforming Africa” discussed the WOW Generation, mobile energy solutions and 3D printing, among other successful innovations happening on the continent of Africa. He spoke of how the WOW Generation is a new generation of young, talented and driven social entrepreneurs who are not only in it for the money, but who are taking into account a positive return to society as well. WOWers have already helped thousands by working with local entrepreneurs to solve local problems with low-tech solutions.

De Waele also covered a number of mobile energy solutions currently in effect. Angaza Design is a company based in Palo Alto that is currently working in Tanzania, Kenya and Zambia. Using solar panels, Angaza Design has developed pay-as-you-go technology to provide energy that will charge mobile phones in rural areas.

Another project De Waele mentioned does not necessarily alleviate poverty, but does improve the daily lives of people living with a particularly harsh disease in Kenya. The Happy Feet project uses 3D printing to create customizable shoes in an attempt to solve the jigger problem. A jigger, also known as a sand flea, is a small insect that bites and feeds on humans, cats, dogs and domesticated livestock. Though a single bite is not likely to cause damage, complications can arise when a female jigger burrows into the foot of a person. Due to the pain, victims of the sand flea are unable to walk, which means they are also unable to work. In cases of serious infestation, it is possible to lose a nail, in the best case, or whole digits from the hands and feet in the worst case. The worst cases appear in places of poverty.

By creating and using new and inexpensive mobile technologies, there is potential for increased economic growth in developing countries. Not only is there growth, but the positive changes are impacting those living in the worst conditions. While 3D printed, customized shoes will certainly help with jiggers and their detrimental impact on those living in Kenya, projects like Angaza Design?s mobile phone charger will give independence to those living in poverty.

However, like most things, poverty alleviation is not a simple act. The United Nations Development Programme states that simple economic growth will not reduce or alleviate poverty, improve equality or produce jobs, unless said growth is inclusive of all individuals in the economy.

For example, a recent study by the African Economic Outlook showed that economic growth in Nigeria has not resulted in poverty alleviation or the creation of jobs. Despite policies for inclusive growth and employment generation, the report showed a 3 percent increase in unemployment between 2010 and 2011. The report explained that this was because the oil and gas sectors, the areas increasing economic growth, do not have much potential to create jobs.

Though Nigeria projects a 6.7 percent growth in 2013 and a 7.3 percent growth in 2014, there are potential problems. Security problems arising from religious conflicts in certain states, as well as the continued cost of flooding, all constitute potential drags on projected economic growth. The report also said that current reforms that have resulted in price and exchange rate stability should be increased by the Nigerian government to see continued progress in economic growth, a key component of poverty alleviation.

– Jordan Bradley

Sources: The Next Web, UNDP, Camps International
Photo: OxFam

, ,

Make Poverty History

Make Poverty History Aims
Make Poverty History (MPH) is staging a worldwide campaign. Its mission statement matches its name as it aims to raise awareness about global poverty and make concrete policy changes in various nations’ governments and in intergovernmental organizations.

The various national Make Poverty History campaigns are part of a larger international campaign called Global Call to Action Against Poverty, a worldwide alliance committed to making world leaders live up to their promises and ending global poverty.

 

The Admirable Aims of Make Poverty History

 

In comparison to other aid organizations that may struggle trying to apply single, cure-all strategies on a universal scale, MPH has experienced such widespread success because each participating country can focus its national campaign on different issues within the broader topic of alleviating global poverty.

Despite these slight variations, however, all countries generally focus on issues such as aid, trade, and justice that are relevant to the UN’s eight Millennium Development Goals. Besides alleviating global poverty, MPH also aims to reduce the corruption that plagues many developing countries’ governments and prevents foreign aid from reaching the poorest members of society.

For example, the British MPH campaign is a coalition of charities, religious organizations, trade unions, and celebrities whose campaign slogans include “trade justice,” “drop the debt,” and “more and better aid.”

The call for “trade justice” demands a global trade system that does not allow half of the world’s population to live on less than $2 USD per day. This aspect of the campaign seeks to prevent the wealthiest countries and individuals from reaping all of the trade benefits at the expense of the impoverished.

Meanwhile, the “drop the debt” aspect of the campaign suggests canceling unpayable debt of the world’s poorest countries without cutting these countries off to the prospect of future aid. This includes creating a fair and transparent international process to ensure that human needs take priority over debt repayments .

Finally, the “more and better aid” component notes that increasing the proportion of national budgets allocated to foreign development aid will not make much of a difference unless nations can also change the way in which they deliver their aid. MPH believes that targeting aid specifically to basic health care and education, rather than giving money to governments for further allocation, is the best way to avoid corruption and address the underserved people’s true needs.

Meanwhile, Australia’s MPH campaign focuses on increasing Australia’s effective foreign development aid to 0.7% of its gross national income, tackling global climate change issues, and addressing chronic hunger problems across the globe.

While both the MPG and its parent campaign were originally created as a one-time-only campaign in 2005, the dual campaigns’ continued success have spurred leaders to extend the campaigning alliance until at least 2015. MPH is now considered the biggest, most widespread anti-poverty movement in history.

The leaders of MPH acknowledge that, despite its many successes, the fight against poverty continues on. Through campaigning, fundraising, and fighting to make their voices heard by politicians and policy makers around the globe,  MPH can ensure that the fire it has ignited in the hearts of its followers never dies.

– Alexandra Bruschi

Sources: Make Poverty History, The Guardian, Oxfam Australia, Millennium Development Goals,
Photo: The Guardian

, , ,

5 Military Quotes About Global Poverty

Military_quotes_poverty
Though the United States devotes roughly $660 billion a year to the military to protect the U.S. from its enemies, influential military leaders have spoken out about the efficacy of foreign aid and diplomacy, rather than military action, for improving national security. Military action is unavoidable in some circumstances, but a rising number of high-ranking military officials are beginning to back an increased budget for foreign aid. Listed below are 5 quotes from military and intelligence officials about the power of aid in relieving global poverty.

  1. “In many respects, USAID’s efforts can do as much over the long term to prevent conflict as the deterrent effect of a carrier strike group or a marine expeditionary force.” – Lieutenant General John Allen, Commander of U.S. Forces in Afghanistan
  2. “Development is a lot cheaper than sending soldiers.” – Robert Gates, Former Secretary of Defense
  3. “To truly end the threat from al-Qaeda, military force aimed at killing our enemy alone will never be enough. The United States must stay involved and invested through diplomacy, through development, through education, through trade in those regions of the world where violent extremism has flourished.”- Leon Panetta, Former Secretary of Defense
  4. “Robust resourcing for the State Department’s mission is one of the best investments for reducing the need for military forces to be employed. Together, our military leaders and our diplomats not only represent a symbol of America’s enduring commitment to the region, but they also build trust through partnerships that have an important stabilizing effect when trouble looms.” – General James N. Mattis, Commander, U.S. Central Command
  5. “Our enemies today are not as cut and dry as they were in the Cold War. Conditions in the world such as grinding poverty, pandemic disease and severe food insecurity serve as seeds from which extremism and instability can grow. By addressing these issues, we diffuse many of today’s national security threats and keep our troops out of harm’s way.” – General Michael Hagee, Retired Commandant of U.S. Marine Corps and Admiral James Loy, Retired Commandant of U.S. Coast Guard

– Katie Bandera

Sources: USGLC, The Borgen Project, Politico
Photo: Free republic, Politico, Washington Independent, Algemeiner

 

Read Humanitarian Quotes.