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Poverty and Electricity in Indonesia

Electricity in IndonesiaAs of March 2023, Indonesia faces significant challenges, with 25.9 million of its populace living in poverty. The country struggles with inadequate housing, insufficient access to clean water and frequent food shortages. Additionally, 30 million people lack reliable electricity in Indonesia, for heating or cooking. The government recognizes the urgency of this issue. It is striving to provide essential electrical services to households in dire need.

Generating Wealth Through Electricity

On March 1, 2024, BPS reported an 8.47% increase in food prices, significantly affecting staples such as rice, peppers and oils. This price hike further exacerbates the challenges faced by Indonesia’s impoverished communities. In response, many are focusing on energy costs to secure adequate heating and cooking resources.

Proper energy access can boost household income by 21% and reduce the yearly poverty rate by 1.5%. The installation, training and maintenance of energy facilities and outreach properties generate jobs. Between 2.1 and 3.7 million jobs are estimated to be created by 2030 in Indonesia’s mission for cleaner and more efficient energy. Significant employment and distribution of energy in Indonesia are under review as it transitions to clean energy compared to its recent 61.5% reliance on coal for energy.

The Renewable Energy Skills Development Project

With clean energy in scope, Indonesia is heavily investing in skills development through the Renewable Energy Skills Development Project. This initiative aims to train and increase the number of qualified staff for the planning, maintenance and design of energy plants. This will ensure that expertise is more accessible. By providing education and higher-paying job opportunities in the energy sector, the project not only improves energy accessibility but also boosts household incomes.

The positive impacts are substantial. Developing a skilled renewable energy workforce positions Indonesia as a global leader in sustainable energy. Additionally, it will enhance energy security and reducing greenhouse gas emissions. Economically, higher household incomes increase consumer spending, stimulate local businesses and foster economic growth. Improved financial stability leads to better access to education and health care, enhancing overall quality of life.

The focus on renewable energy attracts innovation and foreign investment, further driving economic development. This comprehensive investment in skills development and renewable energy ensures sustainable economic growth, better living standards and a healthier environment for future generations, highlighting the extensive benefits of this strategic initiative.

Policies and Electricity in Indonesia

Indonesia’s Electricity Law ensures affordable, high-quality electricity, prioritizing domestic energy for sustainability. Law No. 15 of 1985 allowed limited IPP participation, expanded by Law No. 20 of 2002. However, this was revoked in 2004 to keep control under the government. Law No. 30 of 2009 confirmed PLN (State Electricity Company) as the primary provider, though private businesses can now obtain supply licenses. Regulations from 2006 to 2013 introduced feed-in tariffs for renewable energy, requiring PLN to purchase from small- and medium-scale sources.

The Indonesian government plans to leverage the power sector to achieve emission reductions in line with NDC targets. With a current 5% growth in demand driven by a 5-6% increase in electricity consumption, Indonesia has significant potential for solar energy. The government aims to achieve a primary energy mix of 23% from new and renewable resources by 2025, increasing to 31% by 2050. This is outlined in Presidential Regulation No. 22/2017 on the General Plan for National Energy (RUEN). This transition is supported by the 2022 regulations that endorsed energy transfer policies.

– Demi Olin

Demi is based in Huntington, WV, USA and focuses on Good News for The Borgen Project.

Photo: Unsplash

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Disability and Poverty in Russia

Disability and Poverty in RussiaRussia’s poverty rate across all demographics sits at 12.1% as of 2020, per the World Bank. Further, 13 million Russians have disabilities, which is roughly 9% of the total population. In lower and middle-income countries, which includes Russia, disabled people are twice as likely to live in poverty than non-disabled people. As with many countries, disability and poverty in Russia are linked to each other; Russia’s history of discrimination against disabled people relegates many of them to live in poverty and this marginalized demographic faces discrimination in modern-day Russia.

History

Historically, the Russian government has treated its disabled citizens with disregard for their well-being. The current Russian Federation’s former governing state, the Soviet Union, outright denied their existence in the country, infamously declining to participate in the first iteration of the Paralympic Games in 1980, claiming that no disabled people existed in the country.

Before this, the Soviet government assigned disabled World War II veterans to low-paying jobs upon their return from war, thus relegated to poverty. These new jobs assigned to the now-disabled Russian veterans often disregarded their previous careers and skill sets. They reduced them to being defined by their disability.

This practice of job reassignment created an association between poverty and disability in Russia and disabled citizens were given little opportunity to better their conditions beyond their low-wage occupations.

Modern Problems

In addition to the higher rates of poverty among disabled Russians, discrimination against people with disabilities is still pervasive in the country. In 1995, the Russian Federation passed a law outlining a federal definition of disability, a step forward from the Soviet Union’s denial of disabled Russians.

Despite the federal acknowledgment of disabled citizens, the country still lacks adequate resources for them. Disabled people in Russia, particularly children with disabilities, are mistreated. For example, according to Human Rights Watch (HRW), Russian orphanages have been caught transferring their disabled residents to state-run institutions without their consent once they have turned 18 when they instead should be transitioned into living independently.

This comes in tandem with allegations of abuse inside Russian orphanages, where an estimated 30% of disabled Russian children live. These orphanages hold children for extended periods despite being intended only for temporary stays. Former residents have accused these children’s homes of tying patients to beds, sedating them and temporarily transferring them to mental institutions against their will as punishment.

Solutions

The violence and adversity faced by disabled people are still pervasive. However, some organizations are working to alleviate the issues that come from disability and poverty in Russia. To combat the adversity faced by disabled Russians, some citizens have started their own charities and nonprofits to improve the quality of life for people with disabilities and give support to their families.

For example, Perspektiva is a Russian nonprofit that works to improve the quality of life for people with disabilities, including helping them find employment to diminish the number of people living with both disability and poverty in Russia. Perspektiva has helped Russians with disabilities complete internships with international companies, such as Ernst and Young, L’Oreal and SAP and it lists hundreds of jobs on its employment portal for disabled job applicants.

Final Remark

The social acknowledgment of disabled Russians and the work of charities like Perspektiva have helped improve the status of disabled Russians living in poverty. However, this vulnerable demographic still needs assistance and advocacy to improve further.

– Elizabeth Nelms
Photo: Wikimedia Commons

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The University of Notre Dame’s Poverty Initiative

University of Notre DameOn January 23, 2024, the University of Notre Dame announced a groundbreaking academic research program to address and combat poverty in the United States (U.S.) and worldwide. Supported by a historic $100 million donation from an alumni couple, the program “The Notre Dame Poverty Initiative” focuses on three key areas: Research, student formation and impact. The university hopes to deepen its understanding of the challenges faced by people living in poverty while also seeking to identify and explore potential solutions for this global issue.

Addressing a Global Challenge

Poverty affects around 700 million people worldwide. Breaking the cycle of poverty has proven to be a complex challenge despite many well-intentioned efforts already underway. The University of Notre Dame’s poverty initiative aims to make significant strides in poverty research, seeking to understand and unravel its root causes and consequences. Guided by the university’s profound mission, this initiative offers a beacon of hope in the ongoing battle against poverty across the globe.

Leadership and Vision

The Director of the Wilson Sheehan Lab for Economic Opportunities (LEO), Jim Sullivan, will lead the University of Notre Dame’s poverty initiative. Sullivan and the research group hope to provide undeniable evidence of effective and promising research. They hope that, with provided evidence, policymakers and service providers will strive toward systemic changes. In addition to this, the initiative hopes to increase involvement at the university level to not only inspire students to engage with anti-poverty work but to support opportunities for more nonprofit research at the school.

Building on Success

The University of Notre Dame hopes to continue building on the successful poverty research already being conducted. Through the university, the LEO and the Pulte Institute for Global Development have grown strong partnerships with providers across the U.S., including Goodwill Industries, Catholic Charities USA, Catholic Relief Services and the U.S. Agency for International Development (USAID). The new initiative plans to expand these existing efforts through a “local-to-global” approach, translating the already successful plans to a broader global scale.

The Three Areas of Focus

Research: The poverty initiative will support and invest in research addressing poverty’s causes through informing policy, guiding philanthropic endeavors and practicing evidence-based solutions.

Student Formation: The initiative will invest in programs focused on student formation, including learning expansions and curriculum development. Graduates will be equipped to address the challenges of poverty in their personal and professional lives.

Impact: The initiative also aims to make an impact by directly using research to spark action. Collaborating with partners in government, nonprofits and the corporate sector, it seeks to expand on pre-existing successful programs and contribute to poverty alleviation efforts.

Conclusion

The University of Notre Dame’s poverty initiative represents a transformative step in eliminating worldwide poverty. An issue as complex as this requires extensive and evidence-based research and implementation, which is what this program aims to provide. With Jim Sullivan’s and other staff’s strong leadership, this multifaceted approach intertwines diligent research, student involvement and measurable impacts to tackle an issue as compound as generational global poverty. The University of Notre Dame is dedicated to being a force for good, setting a transformative example for other programs and research institutions.

– Katherine Barrows
Photo: Pixabay

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3 Organizations Working Toward Poverty Reduction in Liberia

Poverty Reduction in LiberiaLiberia has implemented various poverty reduction initiatives, which are essential in regions where the extreme poverty line can fluctuate due to uncontrollable factors. These plans are aimed at bringing about positive change, not only within Liberia but also globally.

The Pro-Poor Agenda for Prosperity and Development in Liberia is daring and has broad goals. The International Monetary Fund (IMF) outlined that Liberia seeks to eliminate poverty and hunger, bridge gender inequalities, provide comprehensive education and increase its people’s overall quality of health. 

In Liberia, the number of households below the extreme poverty line increased to more than 50% as of 2021. Half of Liberia’s families live on less than $2 a day. Countries have tried many ways to tackle the problem of poverty. Some have worked, some have not and some are still being studied. The following are organizations working toward poverty reduction in Liberia. 

3 Organizations Working Toward Poverty Reduction in Liberia

  1. GiveDirectly. GiveDirectly is a nonprofit organization that believes in universal basic income. It stands behind the idea that poverty reduction in Liberia is possible. A UBI is financial assistance awarded to people living in extreme poverty. As of December 2023, GiveDirectly reported that its UBI initiative in Liberia has dramatically improved the quality of life of Liberians, and it provides data for improving the structure of UBIs for future positive impact. GiveDirectly offers the UBI to all of Liberia’s people experiencing extreme poverty, regardless of outside factors like unemployment or disabilities. It engages in long-term studies to examine the impact of its efforts toward poverty reduction in Liberia. After three years of study, the company gathered positive and applicable results, including happiness, overall well-being and food security. The group is meticulous about its research and the information it gathers, even offering equations on its website showing its study’s positive and negative results.
  2. New Breed Tech Hub. New Breed Tech Hub offers a real-life Magic School Bus in their struggle against poverty reduction in Liberia. This startup engineered a mobile ground assault on digital illiteracy in Northern Liberia by building a computer lab into a bus. It offers education programs to women and children to help develop their skills for the 21st-century job market. Access to the internet and technological proficiency are increasingly regimented in this market. Founder Jeremiah Lloyd Cooper, a survivor of post-war Liberia, says he wants to give kids opportunities “he did not have” and “prepare them for the 21st Century workforce.” Technology bridges extreme poverty to the possibility of a brighter future. Online education programs for struggling adults help them learn new, marketable skills. There is detailed environmental information gathered from drones to help farmers maximize their crop output. In addition, there are digital currency routes for impoverished people to receive donations and payments for services rendered as just a few of the ways that technology boosts an economy. Technology is one of the critical factors affecting poverty reduction in Liberia. However, if the people of Liberia are not adept at using technology, all possibilities become moot points. That is why New Breed Tech Hub’s venture is such an important and novel idea. The company can build a more positive future with the skills learned from its mobile computer labs. 
  3. DE4A. Around 33% of Liberians are using the internet compared to 63% of people on the planet. Moreover, it costs an average of $2 for 1G of data. The average household under the extreme poverty line can expect to have only $2 for necessities like food, clean water and shelter. The Digital Economy for Africa (DE4A) is an initiative from the World Bank that proposes to bring affordable internet to households and businesses by the year 2030 at the latest and has already had a significant impact on the cost of data and the distribution of the internet. The initiative managed to increase the number of people who had access to the internet from 26% in 2019 to 36% in 2022. It also decreased the cost of data, lowering the price from 10% of a household’s income to 5%.

What’s Next?

Several initiatives and organizations are actively working to alleviate global poverty and support poverty reduction efforts in Liberia. While the examples mentioned above are just a few, there is hope for new opportunities that aim to create a safer and more equitable Liberia.

– Antonio Muhs
Photo: Wikimedia Commons

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Exploring Books on Poverty in India

Books on poverty in IndiaIn India, a country of about 1.4 billion people, poverty remains an enduring and multifaceted challenge. The complexities associated with poverty and its intersectionality have been vividly documented and explored over the years through the lens of literature. By immersing the reader into the world of poverty and presenting its challenges firsthand, books on poverty provide a comprehensive understanding of its multifaceted nature while concurrently fostering awareness. 

Books possess the ability to confront the prejudices surrounding poverty by humanizing the experiences of the economically disadvantaged in a nation. They serve as catalyzing agents, inspiring action for poverty alleviation. Fundamentally, books facilitate the initiation of discussions on the theme and reality of poverty, engaging not only academics and policymakers but also the general public. 

Everybody Loves a Good Drought

“Everybody Loves a Good Drought” serves as a wake-up call, urging readers to confront uncomfortable truths about the harsh realities marginalized communities face. The book title, dripping with bitter irony, reflects Palagummi Sainat’s visceral response to the deplorable conditions witnessed during his reporting tenure for the Times of India between 1993 and 1995. This is where the heart of the narrative lies, exposing the intricate web of poverty, exploitation and resilience in some of India’s most destitute villages. The book uncovers a hidden division of labor, shedding light on occupations and practices that remain obscured even to many within India.

People Without History: India’s Muslim Ghettos

In the fabric of India’s diverse landscape, narratives of resilience and adversity often remain untold. “People Without History: India’s Muslim Ghettos,” authored by Jeremy Seabrook and Imran Ahmed Siddiqui, is one such book that unveils the intricate lives of individuals residing in the impoverished suburbs of Kolkata. This book sheds light on the challenges faced by these communities, predominantly comprising Muslims and their remarkable endeavors to carve out a livelihood amid dire circumstances. What sets this account apart is its portrayal of uncelebrated triumphs and unacknowledged tragedies that coexist within these neglected districts.

Behind the Beautiful Forevers

Pulitzer Prize-winning reporter, National Magazine Award recipient for Feature Writing and MacArthur Fellow Katherine Boo’s compelling work, “Behind the Beautiful Forevers,” transcends the boundaries of traditional nonfiction and immerses the readers into the gritty realities of poverty within the slums of Mumbai, India. This book attempts to capture the essence of life in Annawadi, a small enclave inhabited by around 3,000 people, situated amid the opulence of the Mumbai International Airport and luxury hotels.

The book unfolds over a meticulous three-year study, focusing on the lives of two families. Remarkably, Boo’s storytelling places women and children at the forefront, acknowledging their pivotal roles and amplifying their voices as the most faithful and reliable sources of information. Her deliberate choice to focus on children as narrators, devoid of the adult biases of religion, caste or politics, adds depth and authenticity to the narrative. Thus, “Behind the Beautiful Forevers” compels readers to confront uncomfortable truths about societal disparities.

Conclusion

Literature serves as a powerful medium for illuminating the often unseen and ignored aspects of society and paints vivid portraits of individuals and communities living in poverty. These books do the same, allowing the reader to access an entire reality different from their own to understand the different identities existing within India and the world.

– Manasvi Kadian
Photo: Flickr

4 Things You Didn’t Know About Poverty in Madagascar

Poverty in MadagascarMadagascar is one of the poorest countries in the world that is not struggling with ongoing conflict. In fact, it has one of the highest poverty rates in the world, with 75% reaching above the national poverty line in 2022. While many factors have contributed to the issue of poverty, its impact has affected various aspects of life. Here are four facts that you didn’t know about poverty in Madagascar.

Education

Despite poverty levels in Madagascar. the country makes excellent efforts to ensure that a proper education is provided to all. School is compulsory for all children between the ages of 6 and 14. The school year begins and ends in October. Primary school lasts five years, followed by a 4-year post-primary schooling system, with upper secondary school ending at age 18. However, according to statistics, almost 40% of girls of secondary school age are absent from school, compared to 37% of boys of the same age. The biggest disparity between those attending and those not attending is between rich children and poor children.

Health Care

The health care system in Madagascar fights to provide for the country’s growing population. About 60% of its citizens live within 5 kilometers of a health center. However, this can be an issue for those living in remote areas, as the centers are often in difficult-to-reach locations. Many people walk 5 to 10 kilometers to access the nearest health center.

In the ’70s, Madagascar launched its Primary Health Care Drive. This initiative provides health care to the inhabitants of the country through the help of health aides who travel on foot or bicycle, thereby making health care accessible to those who would otherwise not be able to access it.

Nature

Madagascar has suffered huge food shortages, bringing people to the brink of famine in a drought that has been the worst in over 40 years. In 2023, Tropical Cyclone Freddy dealt a severe blow to the eastern part of Madagascar and the population continues to endure the lingering effects. Madagascar’s National Policy to Combat Climate Change, launched in 2010, is doing everything to battle the losses and devastation the cyclone has caused.

Wildlife

Madagascar’s wildlife, particularly the lives of lemurs, have suffered significantly due to the impact of poverty. Although lemurs are considered sacred, the lack of food has led to increased hunting of the species. This, accompanied by dry forests and harsh living conditions, has made life very difficult for the animals.

Surveys show that hunting pressure has led to the threat of extinction of the largest living lemur. Initiatives like the Wildlife Conservation Society (WCS) have carried out significant research on the consumption of lemurs and note the major threat that illegal hunting of wildlife species has caused those endangered species. A 2019 survey highlighted that 53% of 659 households had eaten lemur meat. It is revealed that while hunters are not seeking to break the laws that protect these animals, they are mostly people who have fallen to survival tactics to help feed the villagers.

Final Remark

Although Madagascar is one of the poorest countries in the world, making poverty in Madagascar a large problem to tackle, it is making tangible efforts towards developing its health care system and educational sector and protecting its wildlife.

– Éadaoin O’Leary
Photo: Wikimedia Commons

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How Political Polarization Affects Foreign Aid 

How Political Polarization Affects Foreign Aid 
Political polarization refers to the divergence of political attitudes toward ideological extremes. In simple terms, people are becoming more divided in their views and tending more toward far-right or far-left views, creating vast ideological distances between opposing political individuals. This results in overall less agreement among those of differing political beliefs. However, this may not be the only result of increasing polarization.

Consequently, viewpoints are increasingly becoming more singular, allowing prevalent issues in society to be turned monochrome. This has especially been exacerbated in political discourse surrounding issues with a strong moral component, which cannot be quantified by numbers or data. For example, the issue of foreign aid could be considered to have a high level of subjectivity, as there is no correct answer to how much foreign assistance ‘should’ be provided.

The Impact on Global Poverty

Studies have previously shown that high levels of political polarization can lead to a delay in the legislative process and that a divided government can critically slow the policymaking process. Research has uncovered how polarization can delay the legislative process by “60 days, on average,” a significant duration of time for which many issues cannot wait.

A delay in the legislative process will inevitably hinder decisions made regarding U.S. public policy, including foreign policy and aid measures. Furthermore, polarization can impact policy on an international scale, affecting international cooperation. This could be detrimental to recipient countries, leading to the neglect of those who are most in need.

Poverty Reduction Abroad, Impacts at Home

Addressing global poverty has benefits for domestic donors such as the U.S., including improvements to the economy, job creation and reinforcing national security. Reductions in global poverty mean that, on aggregate, fewer people will be living below the poverty line. Thus, their overall disposable income will be higher. Higher demand accompanies higher incomes. Therefore, consumption is likely to increase, which can increase global demand. Domestic markets will be able to reap the benefits of this increased demand, and additional job creation may occur. This can generate an incentive for addressing global poverty.

Fostering international relationships is yet another benefit of foreign aid. Providing assistance to other nations encourages international cooperation and may be a preventative measure against future conflict. National security grows stronger as alliances between nations are fostered. This provides another incentive for foreign aid.

Foreign aid given by the U.S. has already made a massive impact on global poverty reduction efforts. For example, the President’s Emergency Plan for AIDS Relief (PEPFAR), a program tackling HIV in Africa, prevented many deaths that would have likely otherwise occurred due to the disease’s high mortality rates. Other aid programs have included alleviating famine in India, which, in addition to helping the Indian population, also spurred development in the agricultural industry. This resulted in better production techniques and higher yields. The military aid provided to many South American countries from the 1980s has accelerated the clamp-down on illegal substances, both for the U.S. and other nations, decreasing the global supply of drugs. Foreign aid plays a critical role in combating poverty, and, as demonstrated, has beneficial effects for all.

Individual Action

While the U.S. is numerically the largest contributor to overseas aid, when taking into account the per capita figure, the U.S. ranks significantly lower than other countries overall. Considering the vast size and GDP of the U.S., more could certainly be done in terms of providing foreign assistance.

Now more than ever, individual action is key in expediting the legislative process. Putting pressure on political leaders can be done in different forms, through emailing, calling, writing letters and much more. This is critical in obliging leaders to put foreign poverty reduction at the forefront of their agenda, and overcoming the delay created by intensifying polarization, in order to achieve a successful eradication of global poverty.

Solutions to Polarization

While polarization is a very real and worsening issue, it is more of a psychological phenomenon than a concrete issue. This makes any form of solution difficult to enact. Reducing prejudice and intolerance between different groups is key to becoming more open-minded. This can be facilitated through encouraging more contact and discussion between opposing groups. Encouraging open debate and analyzing alternative perspectives is helpful in avoiding polarization. This will ultimately be the key to mitigating the legislative time delays and other negative impacts of political polarization.

– Hannah Bugeja
Photo: Flickr

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Cuba’s Growing Economy and its Effects on Poverty

Cuba’s Growing Economy and its Effects on Poverty
In 2018, Cuba’s economy was slowly increasing at a GDP growth rate of 2.2%, recovering from the economic instability the country was experiencing at the time. Since the COVID-19 pandemic, however, Cuba’s economy regressed significantly as its industries, such as the service industry (which composes 75% of the national GDP), were drastically affected. The effects of the pandemic were further exacerbated as Cuba’s currency was changed to the Cuban Peso in 2021, leading to hyperinflation at an estimated 500%. The outcomes of these events have drawn attention to Cuba’s growing economy and its effects on poverty.

Despite its economic regression, Cuba’s economy has been revitalized ever since 2021. Inflation has reduced from 500% to 39.07% in 2022 and public debt decreased from 151.1% of Cuban GDP in 2021 to 118.9% of Cuban GDP in 2022. This is largely in part due to the Cuban government opening its economy to private businesses, many of which originate from the U.S. As Cuba welcomes private business, the people of Cuba, especially those in poverty, have significantly benefited. 

US Companies Entering Cuba 

One example of how Cuban industries have been impacted by U.S. companies is the Cuban tourism industry. In January 2021, Cuba had 84,000 tourists, down 80% from January 2020. In January of 2023, however, Cuba recorded 246,000 tourists. This surge is mainly due to companies that have sped up Cuban tourism’s economic recovery. One such company is Airbnb. 

A popular characteristic of Cuba for tourists is the Casas Particulares, which are homes of Cuban residents that are shared with tourists. Airbnb rose to prominence in Cuba because it promotes these casas and makes it easier for tourists to locate them. In Airbnb’s first year in Cuba (2015), the company generated business for more than 4,000 Casas Particulares. Airbnb also significantly increased jobs within Cuba’s tourism industry. 

One case study involves Manuel Fortún Manzano, a 29-year-old employed in a construction company at the time of Airbnb’s entry into Cuba. Through Airbnb, Manuel began to offer a tourist experience (known as the “Havana Whisper”) which allowed Manuel to become a full-time tour guide. Manuel represents one of the thousands of people who have benefitted from a job as a result of Airbnb. 

Besides Airbnb, other American corporations, such as Netflix and American Express, have recently entered Cuba and greatly improved various industries. In doing so, the economic improvements have also benefited much of Cuba’s poor. As such, U.S. companies have contributed to Cuba’s growing economy and its effects on poverty reduction. 

How Cuba’s Growing Economy is Decreasing Poverty

  1. Lower Unemployment Rate: In January 2021, Cuba’s unemployment rate reached 3.87%, jumping 2.8% from the previous year. However, since the conclusion of the COVID-19 pandemic and the start of Cuba’s initiative to open its economy, unemployment rates have declined again. As of 2022, Cuba’s unemployment rate decreased by 1.07%. As the unemployment rate continues to decrease, more people will be able to obtain jobs and a stable source of income, thereby decreasing the number of people in poverty.
  2. Hunger & Nutrition: One of the most influential ways Cuba has reduced poverty levels has been through addressing hunger and malnutrition. The Global Hunger Index (GHI) measures the percentage of a country’s population that suffers from hunger on a 0 (best) to 100 scale (worst). Since 2000, Cuba has not had any GHI score surpassing the “very low” threshold, which is a score of 5 or less. Despite a low GHI score, Cuba has had struggles with agricultural production, mainly due to COVID-19. While the Cuban government continues to invest in its weak agricultural output, Cuba has effectively prevented hunger and, therefore, poverty.
  3. GDP Growth: In 2020, at the height of the COVID-19 pandemic, Cuba’s GDP growth rate hit rock bottom at -10.9%. As Cuba began to open its economy to privatization, however, Cuba’s economy rebounded. A year later, in 2021, Cuba’s GDP grew by 1.3%. This trend is very promising because a higher GDP is known to have a direct correlation with lower poverty rates. 

These three trends represent the importance of Cuba’s growing economy and its effects on poverty reduction.

The Future of Cuba

As Cuba embraces privatization, more businesses will seek to enter the market and stimulate Cuba’s declining economy. As the economy rebounds, Cuba’s poverty rates will continue to fall as people are open to more opportunities. As a result, Cuba’s growing economy and its effects on poverty offer a positive glimpse into the country’s future.  

– Manav Yarlagadda
Photo: Unsplash

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Poverty on Sinking Islands

Poverty on Sinking IslandsAs the effects of climate change continue to manifest around the world, island nations bear the brunt of rising sea levels. Located in the Pacific Ocean, Tuvalu, Kiribati and the Marshall Islands are just a few of these “sinking islands.” Given their unique circumstances, these islands face distinctive challenges as they fight to fend for themselves. The following is an overview of the issue of poverty on sinking islands.

Tuvalu: Challenges

Tuvalu consists of nine islands, two of which are on the verge of submerging. Scientists predict that Tuvalu could become inhabitable in the next 50 to 100 years. Around three-quarters of the labor force operates in the informal economy, working in subsistence farming or fishing. Even so, Tuvalu’s salty soil renders the ground practically useless for agriculture, and the fish risk being affected by ciguatera poisoning, forcing locals to expend a large sum of money on imports. Furthermore, rising sea levels have contaminated underwater ground supplies, making Tuvalu entirely dependent on rainwater, which, coupled with the alarming frequency of droughts, is unreliable. 

Kiribati: Challenges 

The 33 islands of Kiribati are largely dependent on exports of copra and coconuts. However, a shortage of skilled workers and remoteness from international markets hinder its economic development. In 2019, 21.9% of the population lived below the national poverty line. 

As one of the most isolated countries in the world, Kiribati is battling several climate-related threats: severe storms cause the sea to invade the land more frequently, destroying crops and inundating homes; malnutrition increases the spread of diseases such as tuberculosis; and the salinization of water makes it hard to grow food and heightens the risk of diarrhea and skin infections. Furthermore, insufficient planning leaves Kiribati especially vulnerable to rising sea levels. 

Marshall Islands: Challenges 

The Marshall Islands is a collection of 29 atolls and five islands. Subsistence agriculture is the country’s primary economic industry, with coconut and breadfruit being the most crucial commercial crops. Commercial fisheries and tourism also generate substantial income. 

In 2018, a third of the nation fled for the United States (U.S.), seeking to escape impending climate hazards, including sea-level rise, droughts and tropical storms. A report by the Intergovernmental Panel on Climate Change predicts a one-meter rise in the sea level by 2030, meaning entire islands will disappear, and its capital city Maduro will be irreparably flooded. On average, tropical typhoons occur twice a year, causing major landslides and flooding.

Foreign Aid and Potential Solutions

Most of Tuvalu’s GDP comprises donations from the U.N. and nearby countries. The U.N. has been present in Tuvalu since 2000, with 18 agencies actively implementing programs. Moreover, Australia’s partnership with Tuvalu has provided essential medicine and supplies; maintained access to essential goods and services, including education; contributed to the Tuvalu Trust Fund to allow greater economic development; and ensured infrastructure can withstand stubbornly strong winds, coastal erosion and heat waves. Funded by the U.N. Development Program, the construction of a 170-meter-long concrete sea wall to protect the administrative center of the capital is currently in progress. 

Foreign aid accounts for approximately 43% of Kiribati’s finances. The Revenue Equalization Reserve Fund (RERF) — Kiribati’s sovereign fund — holds investments in more than 20 currencies. In July 2023, a Chinese military-run hospital ship arrived in Kiribati, providing medical assistance to the island. In search of a realistic solution, the Kiribati government has purchased land in Fiji in hopes of growing crops and evacuating the whole island should the worst occur. 

Since achieving independence in 1986, the Marshall Islands has operated under a Compact of Free Association with the U.S. The U.S. gives the Marshall Islands more than $80 million in assistance every year, aiding in sectors like education and infrastructure. The country has additionally received aid from Australia, Japan, Taiwan, the U.A.E., Thailand and the E.U. In 2022, the World Bank approved a $30 million project to improve the climate resilience of urban areas in the Marshall Islands. 

Furthering these actions — strengthening infrastructure, building sea walls and buying foreign land — are all potential ways to combat rising sea levels.  

– Lauren Liu 
Photo: Wikimedia

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Disability and Poverty in Puerto Rico

Disability and Poverty in Puerto RicoAccording to the U.S. National Council on Disability (NCD), nearly one in six citizens in Puerto Rico have a disability. This equates to 22% of the population. People with disabilities (PWD) are twice as likely to live in poverty. With a national poverty rate of 44%, PWD in Puerto Rico face tremendous disadvantages, warranting a necessary examination into implementable solutions.

The Price of Poverty

There are six categorizations for disabilities: hearing, visual, cognitive, ambulatory, self-care and independent living.

According to the 2017 Disability Status Report on Puerto Rico, individuals with cognitive disabilities have the most prevalent poverty rate of 58.2%. However, despite having the lowest poverty rate for PWD, visual disabilities still result in a 52.2% rate. While the poverty rate has decreased slightly, dropping to just below 50% in 2022, there is still a concerning link between disability and poverty in Puerto Rico.

Explanations for the levels of poverty in Puerto Rico

First, there are minimal job opportunities available for PWD in Puerto Rico. In 2022, the National Council on Disability noted that only about 23.7% of Puerto Ricans with disabilities play an active role in the workforce. This is a significant contrast to the 36% of PWD in the U.S.

Second, disability accommodations are costly. The NCD found that “the cost of specialized [durable medical equipment] was 11% to 58% higher in Puerto Rico versus the [U.S.].” As of the 2021 U.S. Census Bureau, Puerto Rico’s annual income per capita is approximately $14,000, making it a massive financial burden to pay for expensive equipment like electric wheelchairs.

In the mainland U.S., citizens can qualify for supplemental income and financial assistance if they have a disability and/or fall below the annual income threshold. Despite being a U.S. territory, Puerto Ricans are not entitled to these same benefits.

For example, the Supplemental Nutrition Assistance Program, formerly colloquially known as “food stamps,” is not available in Puerto Rico. Instead, the territory is allocated a block grant, which has not been adjusted for inflation or unforeseeable disasters.

In addition, an April 2022 U.S. Supreme Court decision officially excluded Puerto Ricans from the federal Supplemental Security Income program (SSI). SSI provides direct financial assistance to low-income U.S. citizens with disabilities. This vote further entrenches the exclusion and marginalization of Puerto Ricans with disabilities.

Progress Toward Equality

In lieu of SSI, the government allocates funds to the Aid to the Aged, Blind, and Disabled (AABD) program. AABD’s supplemental assistance aims to meet the basic, daily needs of PWD in Puerto Rico. To receive this aid, individuals have to endure a “physical or mental impairment that will likely not improve and which prevents them from performing their previous job or any other paid work” and own less than $2,000 in total assets.

The Division of Human Development and Disability (DHDD) also provides early diagnosis and intervention services to aid children with disabilities throughout their development. One example of DHDD projects is the Early Hearing Detection and Intervention (EHDI) programs. EDHIs work to examine a child’s risk for hearing loss and ensure an appropriate diagnosis and accommodations are put in place.

While these services show a commitment to aiding PWDs in Puerto Rico, assistance programs such as the AABD are limited. The funding is meager and split between adult assistance, foster care and adoption assistance. Instead of the $750 for an SSI recipient, AABD participants only receive $75. Therefore, more comprehensive efforts are necessary to alleviate the impact of disability and poverty in Puerto Rico.

Despite challenges, there are gradual improvements in living conditions for Puerto Ricans with disabilities. Overall, the ongoing efforts of both the U.S. and Puerto Rico hold the potential to reduce poverty and enhance the quality of life for Puerto Ricans.

– Katrina Girod 
Photo: Pixabay