Archive for category: Poverty Reduction

Information and stories about poverty reduction.

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Poverty in Kosovo

Kosovo_poverty
Since the end of the war in 1999, the Republic of Kosovo has experienced consistent economic growth. Now a lower-middle-income country, it is one of only four countries in Europe that recorded positive growth rates during the economic crisis between 2008-2012, averaging about 4.5% each year. Despite its rapid growth, Kosovo continues to struggle with high rates of poverty and unemployment.

Joblessness is estimated to be at about 40% and remains a central economic-policy challenge. Youth and women are disproportionately affected by the difficult labor market conditions, creating an environment that undermines the country’s social fabric. Kosovo is one of the poorest countries in Europe with a per-capita gross domestic product (GDP) of about €2,700 and about one-third of the population living below the poverty line and approximately one-eighth living in extreme poverty.

Recent studies by UNICEF Kosovo showed that children are at higher risk of living in poverty in Kosovo compared to the general population. The greatest risk of poverty is for children who live in households with three or more children, children between 0 and 14 years of age, children of unemployed parents, children in households receiving social assistance, and children with low levels of education. Whereas, the risk of poverty is much lower for children in a household with at least one employed parent.

The European Union is mainstreaming an effort to fight child poverty by  recognizing the multi-dimensional nature of the issue. Child poverty and exclusion have high social and individual costs. Children in poverty are at high risks of low educational attainment, poor health, and an inability to find work later in life. Investing in children, therefore, is important not only for the well being of current children living in poverty, but also for the health, productivity, and engagement of future adult citizens.

Kosovo declared independence in 2008, however only 98 of a total 193 UN member states have recognized Kosovo’s independence. The lack of agreement remains a central obstacle to achieving the country’s goals for political integration and socio-economic development.

To help reverse joblessness and build a long-term economic growth plan, the World Bank, along with ten other donors, recently awarded Kosove 61 million Euros, mostly in the form of grant money. The Sustainable Employment Development Policy Program (SEDPP) funds were disbursed from the end of 2011 to the middle of 2012. The funds have supported reforms and improved transparency throughout many sectors in the country.

– Ali Warlich

Sources: World Bank, UNICEF, World Bank
Photo: SOS Children’s Villages

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Poverty in Uruguay

Uruguay_Poverty
18.6 % of the population is below the poverty line in Uruguay. Although the majority of this poverty in Uruguay is not extreme, it is still problematic. Like many of other South American countries, Uruguay struggles with alleviating extreme poverty for the poorest sections of its population. The country is also trying to prevent those who are only slightly below the poverty line from plummeting further into the category of the extreme poor.

The small South American nation experienced an economic boom in the early 1990’s followed by a damaging recession in 1995. This recession left a lasting impression on the economy, which to this day continues to suffer. The recession caused a widespread loss of jobs across the country and an increasingly wide income gap. The poverty is not debilitating, but it is significant enough to render notice from the international community. According to the World Bank’s 2001 report on Uruguay, “reduction in poverty is highly dependent on growth, and pockets of poverty and unemployment still exist and in recent years have shown some increase.”

Uruguay also struggles with the high number of children who are born into poverty. The World Bank reports that “children have become a significant portion of the poor with about 40% of Uruguay’s children born into poor families, pointing to a potentially serious problem of inter-generational poverty.” This threat of continuing, irreversible poverty is very concerning. The longer poverty continues to ravage Uruguay, the more entrenched it will become as it roots itself in disenfranchised communities.

The poverty problem in Uruguay is not the most dire in the world, but it requires confrontation. In order for the poverty problem in Uruguay to be eradicated, the economy must be fundamentally changed and social welfare programs must be instituted.

– Josh Forgét

Sources: The CIA World Factbook, The World Bank
Photo: Tico Times

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Top 5 Poverty Prevention Tactics

Poverty Prevention
Global poverty can seem to many to be an insurmountable task. However, much progress has already been made to lift people out of poverty. According to The Global Citizen organization, global poverty has effected 1.3 billion individuals, a number which is actually 52% lower than statistics in the 1980s.

Development practitioners recognize that global poverty can be minimized by addressing other areas including reproductive health, HIV prevention, education, women’s empowerment, and gender equality. UNFPA states that poverty is a multidimensional issue that deprives people of education, resources, services, opportunities, and economic opportunities. UNFPA states that investments to address global poverty should “…[empower] individual women and men with education, equal opportunities and the means to determine the number, timing and spacing of their children – [which] could create the conditions to allow the poor to break out of the poverty trap.”

Reproductive health and HIV prevention can both act as poverty prevention tactics. Reproductive health education, family planning resources, and widely accessible contraception can decrease fertility rates by providing families with the knowledge and tools to space out pregnancies. Furthermore, improved healthcare can reduce population growth because families recognize that they do not need to have as many children to ensure that at least 2 of them survive to adulthood.

 

HIV prevention is also an important poverty prevention tool because  helpful for when men and women know the dangers of HIV, they are able to use protection and are able to prevent the spread of the disease not only from partner to partner, but also from partners to undesired pregnancies and children. By learning how to protect oneself from HIV, individuals are able to prevent untimely deaths as well as preventing the disease to spread within a community, states The ONE organization. By lowering fertility rates through an education in reproductive health and by preventing the spread of HIV through an education in HIV prevention, communities will thrive due to a lower healthier population level.

The third poverty prevention tactic is education. Education is a very important factor in preventing global poverty, for providing an education to young boys and girls will help prevent undesired child marriage as well as early teen pregnancies which can lead to maternal death. An education helps boys and girls obtain the proper knowledge to keep themselves safe, healthy, and helps to plant the seeds of inspiration. Once obtaining an education, these individuals can create sustaining businesses which produce and return economic gains into their communities. By providing an education, individuals are able to thrive and break through the barriers of global poverty by creating strong businesses which will help the economy thrive and will lead to a stable community environment.

The fourth and fifth poverty prevention tactics are women empowerment and gender equality. Women empowerment is a positive prevention tactic because women who are encouraged to attend school and receive an education are more likely to defeat child marriage, are able to marry latter in life, and are able to have less children which lowers population rates. Women who have an education are more likely to work after receiving an education, which boosts the economy and provides a sustainable household for a family. Gender equality offers similar benefits, for if women are able to obtain an education and receive equal pay in employment, both the man and women are able to create a sustainable home for their children. By providing a sustainable environment, the child is able to attend school and is able to receive employment opportunities, continuing this positive cycle.

Through these five poverty prevention tactics, developing countries are able to defeat global poverty and are able to create sustainable economies, healthy environments, and equal opportunities.

– Grace Beal

Sources: Global Citizen, UN FPA, ONE Campaign
Photo: Ambergris Today

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3 Key Responsibilities to Fight Poverty

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Poverty. Can you define this seven letter word? Many individuals can define it, and most would say that poverty is the state of being extremely poor. Yet, how many of these individuals would know the facts behind global poverty and would know what it took to prevent or fight against such a global epidemic? Many individuals are so focused on their own personal lives that they do not notice what lies beyond their own every day life. Yet, global poverty effects everyone and reducing this epidemic could benefit everyone as well.

A dollar and twenty five cents. This is the amount of money in which 1.3 billion individuals live off of every day and possibly even less than this amount, states The World Bank. This is a staggering amount of people living off of less than a dollar a day! Yet as The Global Citizen organization has stated “ In the last 30 years, the proportion of the world’s population that live below this line has halved-from 52% in 1980, to 25% today. That’s a decline from 1.9 billion people down to 1.3 billion people”. There is a notable difference seen today with this decline in global poverty, yet if individuals do not keep putting their efforts towards this cause, the percentage could once again rise to staggering levels.

So how can an individual make a difference, one may question. There are three key responsibilities to help fight against global poverty. The first is through charitable donations. A single individual can make a large difference on numerous lives through charitable donations, states Columbia University. By donating funds towards global poverty, The Millennium Promise explains, an individual can help numerous others obtain food, clean water and power, a healthy living environment, technology and the seeds for innovation, education, gender equality, the proper health care for women and their children, and finally can help plant the seeds for businesses and entrepreneurship to create future stability. These may seem easy to obtain, but without help from numerous donors, it would not be nearly impossible to accomplish these goals.

The second key responsibility to help prevent global poverty is to follow through on the government’s promise to help aid millions who are suffering from global poverty. By following through on their existing commitments to help aid these struggling individuals, it proves that there are individuals who care about fighting to eliminate global poverty, states The Borgen Project. There are many ways in which to contact your government leaders such as writing to your political leaders, organizing letter writing campaigns, writing to your local newspapers and magazines, by calling your political representatives stating your wish in that they support the fight against global poverty, and finally by joining existing networks such as The Borgen Project, The Millennium Campaign, or The Global Citizens Organization.

Finally the third key responsibility is education. By educating yourself on the subject of Global Poverty, you can also educate others. Educating the public may seen like a difficult task, yet it has proven to be a highly successful global poverty prevention tactic. By educating the public, you can help spread the word of prevention and can help lead the fight against global poverty. By educating others, you can help lead to numerous donations against the spread of global poverty, and can also help spread the word of prevention even further. When you educate an individual on this topic, another individual can continue to spread the word, and it leads to the creation of a chain reaction. By doing so, you can lead numerous individuals to make donations, contact their leaders, and to continue the chain of educating others on this crucial subject.

Overall, by making donations to global poverty prevention organizations, contacting your political leaders, and by educating others, you are helping to end poverty. By taking on these three key responsibilities, an individual has started their own personal fight against global poverty and has joined in the movement with numerous others to end this global epidemic.

– Grace Beal

Sources: World Bank, Global Citizen, Columbia University, The Borgen Project
Photo: The Guardian

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How Does the Community Care Fund Fight Poverty?

hong_kong_poverty_apartment
Community Care Fund in Hong Kong has decided to increase their poverty giveaways by helping those who are inadequately housed. They will be giving away more cash subsidies than ever before that will end up helping many people. Community Care Fund is a relatively new organization that was created in 2011. The organization is overseen by an “Executive Committee,” and there are four subcommittees that represent the topics and issues that the organization deals with each day – education, home affairs, medical issues, and welfare. The Community Care Fund works closely with the government’s Commission on Poverty (or the CoP). The Chinese government officially announced the creation of the CoP in the end of 2012. Since then, the Community Care fund and the Commission on Poverty have worked closely in their projects in order to do as much for the country as possible.

The Commission on Poverty has the primary objective of reducing poverty in Hong Kong, and for setting a poverty line for the city. Although poverty is the main goal, this is done in several ways – for instance, by supporting the underprivileged, stimulating social mobility, and promoting employment and education for all. The Commission works with the government, of course, and also works with NGOs, other businesses, and the community. The community at large is supported through the Societal Engagement Task force, which are also a part of the Commission. Attention will be paid to those with disabilities, minorities, and single parents. According to the Commission, they use the Community Care Fund in order to give relief immediately to those who are in dire need. They have also supported a Social Innovation and Entrepreneurship Development Fund.

The Community Care Fund was created under the Secretary for Home Affairs Incorporation Ordinance to help those with economic difficulties, especially the underprivileged that are not a part of the social safety net or who are facing special circumstances. Some of the examples of their subsidies are the following: Provision of Special Subsidy to Persons with Severe Physical Disabilities, Special Care Subsidy for the Severely Disabled, Subsidy for Elders who are on the Waiting List of Integrated Home Care Services, Training Subsidy for Children who are on the Waiting List of Subvented Pre-school, and so on and so forth. Basically, the Community Care Fund gives cash to those who are in desperate need and cannot get it in any other way.

Recently, the Community Care Fund has announced they will be adding another subsidy to help those who are “inadequately housed.” Primarily this will expand a previous subsidy that had only helped those living in subsidized housing – around 150,000 more people will qualify for the cash subsidies and have a good chance of being helped, and drawn out of poverty. This expanded subsidy was only one of four schemes that were announced by Chief Secretary Carrie Lam Cheng Yuet-ngor, the chairwoman of the Commission on Poverty (which, as mentioned before, works with the Community Care Fund in regards to immediate relief). Those living in premises deemed inadequate, such as squatter housing, will receive lump sums based on family sizes – thus far, 26,000 families have been helped by the subsidies.

Overall, just giving money to those in need is not the only or even best solution to reduce poverty, but it is definitely a start. The Community Care Fund allows immediate relief, and the Commission on Poverty keeps those families from falling back into poverty with other programs and initiatives. Basically, the Community Care Fund does as much as it can, and helps those who were previously “missed” by the system. Perhaps these two programs are helping contribute to the overall reduction of poverty in China.

– Corina Balsamo

Sources: SCMP, Community Care Fund, SWD
Photo: Amusing Planet

What is Poverty Reduction?

UNDP Assist Sudan's River Nile State's Villagers
From hand-outs to hand-ups, nations, non-profits, and individual donors do a great deal towards poverty reduction efforts. These efforts see varying levels of success, as judged against many diverse standards. Though most people have a general idea of what it means to reduce poverty, the concept of poverty reduction as such seems to evade a static definition. On the contrary, “poverty reduction” continues to evolve and grow, alongside poverty reduction strategy innovations.

Many years ago, the United States Agency for International Development, or USAID, began to address global poverty by way of financial contributions to governments of poverty-stricken nations. Early relief initiatives also included donations of agricultural commodities, often dropped in shipments from airplanes and helicopters. The idea was simple: people are hungry, give them food. Since then, the concept of poverty reduction has become a much more complicated idea.

Traditionally, the term has been used as short hand for the kind of economic growth pursued in less-developed nations, by more-developed nations, to achieve a goal of lifting as many people above the poverty line as possible. As years have passed, there has been a shift from hand-outs (i.e. simple financial and agricultural donations) toward long-term poverty reduction, which includes extended relief programs and education programs focused on sustainability in target communities.

At least one paper from the Center for Global Development in Washington D.C. argues that the traditional definition of poverty reduction fails to encompass efforts to reduce poverty that, though not falling into a category of efforts to promote long-term growth in target communities, nonetheless contribute to an ethically tenable position in the fight against global poverty. In this paper, Owen Barder argues that poverty reduction has other dimensions, for example, in the trade-offs between tackling current and future poverty or dealing with the causes and symptoms of poverty.

The danger of ignoring the various dimensions of poverty relief, Barder suggests, lead to the adoption of poverty reduction strategies that fail to take a holistic view of poverty. As a result, relief and aid programs may be less efficient, while aid agencies may be operating on underdeveloped objectives and incentives. For a more in-depth discussion of poverty reduction as an evolving concept and the working paper on this topic, click here.

– Herman Watson

Sources: Center for Global Development,UNDP, UNFPA, USAID

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Proposed Begging Ban in Finland

Begging Ban in Finland
Politicians from the National Coalition Party, Centre Party and Swedish People’s Party have proposed a ban against begging in Finland. Ban supporters see begging as an annoyance and want to fine perpetrators, predominately the Roma (or “gypsies”) who are most infamous for begging in Helsinki, the Finnish capital.

Proponents of the ban see it as a positive move for human rights in Finland, where many are coerced into begging by sex traffickers and street criminals. The European group The Group of Experts on Action against Trafficking in Human Beings (GRETA) advocates for the ban for this very reason.

Opposers of the ban see it as a violation of human rights, as it prevents those who are begging out of free will from obtaining help from the more advantaged. The Roma population has substantially increased over the last few years due to their migration from Eastern Europe into Scandinavia, increasing the number of poor people in need of assistance there. University of Helsinki’s Professor of Constitutional Law, Tuomas Ojanen points out the problematic implications of the fledgling law, stating: “(m)eans other than a prohibition on begging should be pursued to deal with the human rights issues related to the poverty of, and systematic discrimination against, Roma people.” Historically, the Roma have been treated poorly and shouldered the blame for many societal problems. One must not forget that the Roma were persecuted in the Holocaust in much the same way as Jews, with anywhere from 200,000-1,000,000 killed by the Nazis from 1939-45.

Is a ban on begging really necessary in Finland? The ban may curb the “annoyance” of beggars asking for money, but what will it accomplish in the long run? It certainly will not result in a greater reduction of poverty. After all, a beggar is begging for money, and will be unable to pay a fine if he or she is required to pay one. Yes, a ban may be conducive to ending forced begging and sex trafficking in Finland, but it will only worsen the situation of the Roma in the region. Further disenfranchising an already downtrodden people is a high price to pay for ending a petty irritation.

– Josh Forgét

Sources: Romanies and the Holocaust: A Reevaluation and an Overview, Ice News, The Human Rights Blog

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MIT Researchers Find the Viral Gene in Microfinance

Viral_MIT_Microfinance
The central problem of many anti-poverty efforts is a failure to actually reach the poor. Often, the programs themselves are faulty or broken. Much of the time, however, the problem is demand-side: The poor don’t trust the aid programs and don’t want to participate.

Two MIT researchers think they have found a solution, however. Esther Duflo and Abhijit Banerjee, co-founders of the Jameel Poverty Action Lab (J-PAL), decided to measure an oft-overlooked factor in community development: social influence, or what they call “diffusion centrality.” Using their new metrics, they think they have found a key to motivating demand-side participation in charitable efforts.

In their recent paper, “The Diffusion of Microfinance,” they argue that finding the right “social injection points” is key to successful beneficial programs. They studied microfinance programs in 75 villages in southwestern India for five years, conducting extensive surveys to determine how participation in microfinance flowed along social networks. They paid especially close attention to social pressure points like village leaders, teachers, and business owners. What they found surprised them.

Although some of the typically well-connected socialites were excellent vehicles for transmitting participation in the programs, they were not as good as you would think. Many ranked low on their diffusion centrality index. Even people’s friends—the quintessential source of social pressure—had little effect on participation.

What they did find is that, barring any presumptions about connectedness, individuals who ranked in the 90th percentile of diffusion centrality were the gatekeepers to large-scale participation. When they were the first ones targeted by microfinance efforts, the programs ultimately reached 11% more people—from their perspective, a huge jump in participation.

“I think this work will lead to more innovative research on how social networks can be used more effectively in promoting poverty alleviation programs in poor countries,” says Lori Beaman, a professor of economics at Northwestern University and a J-PAL affiliate. “It significantly moves forward our understanding of how social networks influence people’s decision-making.”

– John Mahon

Sources: MIT, Stanford, New Yorker
Photo: MIT

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How to Solve Poverty

How to Solve Poverty
The following is not a definite plan for how to solve poverty. There are many causes and factors to consider that promote and sustain impoverishment, thus there are also myriad of solutions. By embracing all possibilities related to global education and technology, we can put a sizable, irreparable dent into poverty.

 

How to Solve Poverty

 

Education for women: 70% of all women in the world live in poverty, and over 32 million women are considered “missing.” Poor health conditions, famine, and social injustice contribute greatly to the problem. Women work some of the most difficult but crucial hours worldwide, yet earn pennies on the dollar for their effort. This leads to desperation and informal employment which opens the door to problems like human trafficking. When women receive education, the results are indisputable: lower fertility and infant mortality rates, less instance of sexually transmitted disease, and a greater chance of employment and contributions to local economies. The benefits of female education are much broader than male education.

Using Positive Deviance: Somewhere in every community lives a person or a family that is not poor for a reason. Finding those positive deviants in the community and letting others around them learn from their experience is becoming a very popular approach in places. Lewiston Elementary in Utah is one of 300 schools to be nationally recognized for outstanding academics, despite the fact that half of their students are poor and 10% speak English as a second language. The kids consistently exceed what is expected of them all due to how they are taught, which includes, “…small group instruction; an evidence-based reading curriculum; progress monitoring; parent involvement; and instructional coaching.” Other schools have begun to take note of Lewiston’s success.

Entertainment Education: One might not immediately see the correlation between entertainment and poverty, but when considering impoverished or uneducated children, it becomes highly apparent. Education is clearly a poverty deterrent, thus using the media to promote education in communities in ways that will entertain can have major impacts. A well known example of this is the television program Sesame Street, watched the world over by young, hungry minds. Other prosocial programs and themes have been used with great results in the developing world, ranging from simple radio programs to a project called Soul City which has been running in South Africa for years. One organization leading the way with entertainment education is Population Media Center.

– David Smith

Sources: Women and Poverty, Learning The Lessons of Sesame Street
Photo: Infosur Hoy

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Poverty In Brazil

poverty in brazil
Poverty in Brazil impacts all aspects of the country. Last month, thousands stormed the streets of Brazil to protest increased transportation fares. As the protests persisted, the causes of the protests expanded to include government corruption, poor social services, and high taxes, while meanwhile, billions were being spent to host the World Cup and the 2016 Olympics. Amidst this public upheaval, President Rousseff’s approval rating slipped from 73.7% to 49.3% in July. During Rousseff’s election campaign, she promised to eradicate poverty, saying it would be her top priority in office. Many are upset that these changes have not come soon enough.

With some of the highest paid executives in the world and an appreciating currency, the Brazilian economy appears to be well off. In addition, poverty in Brazil has been halved in the last two decades. The government is credited with lifting 28 million out of extreme poverty and bringing 36 million into the middle class. But despite being the sixth largest economy in the world, Brazil’s GDP per capita ranks 100th, behind Iran and Costa Rica. In Brazil, poverty disproportionately affects the young and those in the northeast. 8.5% of the population (16.2 million) lives on less than $45/month. Of the 16.2 million living below the poverty line, 4.8 million survive on no income at all.

 

Poverty In Brazil

 

To put it simply, Brazil is a nation of stark contrasts. Although the nation has some of the wealthiest in the world, many more suffer from extreme poverty. 26% of the population still lives below the poverty line. Brazil spends a lot of money on social programs, but because these programs are pro-rich, Brazil’s poorest only see 13% of all total benefits compared to 24% at the top. Increased social spending would not alleviate poverty in Brazil. Rather, Brazil must restructure its spending to reach the poorest. Maercio Menezes, professor of economics at the University of Sao Paulo, told the BBC, “Brazil is one of the most unequal countries on the planet… The reduction (of poverty) that has been taking place in the past decades is minor. If you are born into a poor family it is very difficult for you to eventually become rich.”

In June of 2011, President Rousseff expanded the country’s aid programs to reach the nation’s poorest. Rousseff launched a multi-billion dollar social assistance program called “Brazil without Misery,” and its aim is to eradicate extreme poverty from Brazil by 2014. The program expands a cash transfer benefit program started in 2003 by the Bolsa Family, which provided families with cash benefits in exchange for keeping their children in school and following a simple health and vaccination program. Since the program’s inception, it has helped tens of millions of Brazilians by providing food and basic social services. But, according to President Rousseff, Brazil cannot be content with just a big social program – it must do more to reach the nation’s poorest.

“Brazil without Misery” is made up of three components. First, it extends the cash transfer program to reach more people. The program increases the number of eligible children per family from three to five, in order to reach an additional 1.3 million children. Second, the government aims to improve access to health services, education, and improved infrastructure (running water, electricity, sewage disposal). Lastly, the plan intends to improve the economic means available to Brazilians through job creation, vocational-training and microcredit. To assist Brazil, the World Bank has offered $8 billion towards the program.

Several weeks ago, Pope Francis made a visit to one of Brazil’s most infamous slums. The Brazilian government was most worried about protesters during the Pope’s visit, but the Pope showed support for the nation’s poor and even criticized the government for not doing enough. “Here, as in the whole of Brazil, there are many young people… You have a particular sensitivity towards injustice, but you are often disappointed by facts that speak of corruption on the part of the people who put their own interests before the common good.”

In order to eradicate poverty in Brazil, it is clear that a social overhaul is necessary. The stark inequalities within Brazilian society keep the rich wealthy, but prevent the poor from attaining economic security. Social and economic restructuring will not come easily, nor will they come immediately. Moreover, Brazil will need to reassess “Brazil without Misery” once its term is up in 2014 to see if continuation or expansion is required to meet the needs of the nation’s poorest.

– Kelsey Ziomek

Sources:World Bank,Rural Poverty Portal,Rio Times,ISSA
 Photo: Paraiba Paradise