Poverty Eradication in Germany
Historically, Germany has not been without its economic or financial hardships. Since the 1990s, nearly a quarter (or 15%) of Germany’s population has had the classification of being poor. What is Germany doing in the modern age to combat a significant and stagnant impoverished population? Additionally, why have Germany’s poverty rates not reflected the country’s staggering economic growth? Finally, how is Germany’s poverty-reduction legislation impacting refugee families? This article will illuminate the radical legislation and innovations about poverty eradication in Germany including what the country has implemented to reduce inequality, domestically and globally, in the 21st century.

The BMZ Behind It All

Poverty eradication in Germany began with the BMZ (a German-language acronym for the English-translated “Federal Ministry of Economic Cooperation and Development”). The BMZ is solely responsible for all affairs regarding poverty relief and economic development in Germany and abroad. In recent history, the BMZ has committed itself to addressing the underlying factors, circumstances and mechanisms that create poverty in the first place. In the early 1990s, the BMZ published international and domestic development goals which, to this day, influences the nation’s fight against poverty. Strong social welfare, personal incentive for work and widespread access to education reduced the national proportion of people experiencing poverty to as low as 7% in 2007.

At the time, radical steps like systemic reformations and direct focus on franchising majority impoverished groups of people were novel and began Germany’s repertoire as a powerful benefactor to its poorest constituents. With recent international crises (like the Syrian Civil War) and the advent of automation, however, Germany’s poverty line has all but slowly grown. However, a recent 6.1 billion euro ($7.2 billion USD) expansion of Germany’s social welfare program, Hartz IV (dedicated to long-term unemployment) spells relief for many displaced and at-risk peoples in Germany.

Young Families, New Challenges

Starting a family is, unquestionably, one of the most difficult and unique things a couple (or individual) can undertake. Additionally, it is no short order to both raise a young family while providing for it – and, sometimes, it is nearly impossible to maintain a “work-life balance,” which typically ends in financial hardship. Poor families are at risk to begin with; a new child may well be the tipping point into impoverishment, and the cycle only proliferates when families raise children in poverty. Enter one of Germany’s most radical pieces of legislation, the Parental Allowance and Parental Leave Act, created exclusively to alleviate the financial stresses that new families often face. New parents may receive up to 60% of their income for up to 3 years, addressing underlying systemic cycles of poverty, especially with already at-risk, younger individuals, rather than focusing on short-term manifestations of it.

Providing low-risk, low-stress economic stability for growing families almost ensures that the cycle breaks as well. As of 2014, only 9.5% of children in Germany lived in poverty, compared to the nation’s average of 14%. The Parental Allowance and Leave act has proven to be an extremely successful player in poverty relief in Germany.

International Commitments

Germany has not only invested in domestic poverty relief, it is also interested in working toward poverty relief internationally. Chancellor Angela Merkel has committed to doubling the nation’s UNDP core funding to combat the economic hardship that COVID-19 has brought on internationally. Germany has been the largest single contributor to the UNDP’s core resources since 2017 and has solidified that position by donating nearly $124 million to the core fund this year alone. What that means is increased spending power for the UNDP during the COVID-19 pandemic, which the UNDP predicts will cause the first reversal of human global development since the early 1990s. Germany’s increased budget for the UNDP will go to essential poverty relief efforts in 130 countries that the pandemic has greatly affected, providing assistance for hundreds of millions across the globe.

COVID-19 Relief in Germany

At the start of the COVID-19 pandemic, Germany experienced its impact economically, socially and culturally much like the rest of the world. In Germany, the unemployment rate from March to April 2020 increased by 0.8%. Poverty rates have remained consistent as well, with surprising research showing that poorer workers are at no greater risk of succumbing to the novel coronavirus. What differentiates Germany’s COVID experience is its radical response and mobilization against the extreme economic fallout COVID spelled.

The German government has committed an unprecedented $868 billion relief package for its most vulnerable populations, small businesses and manufacturers. In addition, Germany has expanded wage subsidies for furloughed individuals and executed a tax slash of 3%. In this exceptionally trying time, Germany has revolutionized the way the world thinks about social security, and it stands that German citizens will feel the impact of this emergency poverty relief in Germany for decades to come.

Germany has been a litmus test as a standard for social welfare since the dawn of the modern age. Poverty eradication in Germany is a multifaceted, extensive and progressive approach to the seemingly Sisyphean task of battling poverty at home and abroad. Strong COVID-19 relief plans, the groundbreaking Parental Leave Act, a dedicated ministry of economic affairs and a commitment to international well-being makes for innovative anti-poverty measures that are paving the way for the world.

– Henry Comes-Pritchett
Photo: Getty Images

Bolivia's Poverty Reduction
Bolivia is a South American country that continues to reduce its high poverty rate. Poverty lowered substantially from 66 percent in 2000 to 35 percent in 2018. The government of Bolivia took direct action to develop its economy, reduce its poverty and income inequality and increase foreign investment. The Latin American country still has a high poverty rate, yet its progress in the past 20 years shows promise that Bolivia’s poverty reduction and economic development will continue.

Government’s Direct Involvement in Poverty Reduction

The Bolivian government approved the National Economic and Social Development Plan 2016-2020 to bring about change in its country. Former President Evo Morales fought for income equality and higher wages as Bolivia’s president, and the country is still fighting for his goals. The country intends to help its people live a prosperous life without worrying about the effects of poverty, such as hunger and an inability to afford health care. The main objectives of the plan include eliminating extreme poverty, granting basic services to the entire population and diversifying its economy. The plan set forth a continuation of Bolivia’s poverty reduction progress since 2000 while also lowering income inequality.

Poverty almost reduced by half from 2000 to 2018, which economic growth partly drove after Bolivia transitioned into a democratic society during the 1990s. Income inequality lowered as the Gini coefficient demonstrated. If the Gini coefficient is zero, then income inequality is zero. This income inequality indicator showed a reduction from .62 in 2000 to .49 in 2014. For reference, the U.S. Gini coefficient in 2017 was .39. The 2016-2020 plan sought to continue its efforts in reducing income inequality. Although the Gini coefficient lowered, income inequality still remains an issue in Bolivia.

Poverty Reduction Through Economic Growth

Economic growth is another factor that helped with Bolivia’s poverty reduction efforts. Bolivia’s GDP growth hovered around 4 percent since the early 2000s. From 2000 to 2012, Bolivia increased its exports that consisted mainly of minerals and hydrocarbons. Although hydrocarbons grew controversial in Bolivia, hydrocarbons and minerals accounted for 81 percent of all exports in 2014. In 2000, its exports accounted for only 18 percent of GDP, yet exports grew to 47 percent in 2012. Bolivia’s decision to focus on exports helped grow its economy, add jobs and reduce income inequality. In time, Bolivia may transition to cleaner sources of energy for its future.

Economic growth led to wage increases for many Bolivians, which expressed the idea of poverty reduction through economic growth. Bolivia’s GDP grew by a massive 80 percent from 2000 to 2014, and there were various positive side effects of this growth. Salaries increased after the government took direct involvement in income inequality. The real minimum wage increased by 122 percent in the years 2000-2015. The average labor income also increased by 36 percent during 2000-2013.

The International Monetary Fund (IMF) came to the conclusion that labor income was the number one factor that led to reductions in poverty and income inequality from 2007 to 2013. Nonlabor income such as remittances, rents and transfers contributed a small amount to these reductions. Nonlabor income was an important aid for the elderly though.

Bolivia’s Progress in Income Inequality and Economic Development

Bolivia is an excellent model for what is possible through a government’s direct involvement in poverty reduction. Economic growth helped fuel Bolivia’s objectives in reducing poverty and bringing income equality to its people. Although poverty remains high, Bolivia’s progress in the past 20 years shows promise that poverty will continue to lower. Income inequality remains an issue, and as shown from the IMF’s research, wage increases are key to Bolivia’s poverty reduction.

Lucas Schmidt
Photo: Flickr

George WashingtonGeorge Washington is infamously known for his role as general of the Revolutionary War and for being the first president of the United States. Here are the top 10 interesting facts about George Washington. They reveal his efforts to ease international tensions and address the global issues of his time.

Top 10 Interesting Facts About George Washington

  1. He Believed in Neutrality – Much of Washington’s presidency was spent dealing with the ongoing tensions between Great Britain and France. Washington’s strategy for addressing this issue was to appear neutral. Washington tried not to take a side in this feud. Instead, he focused on the importance of strengthening U.S. foreign relations. Washington sent John Jay to Great Britain, which resulted in The Jay Treaty of 1794. The treaty strengthened trade relations with Great Britain and cleared the U.S. of war debts.
  2. He Wanted Humane Treatment for Prisoners –Washington set the standard for treatment of U.S. prisoners. In the Battle of New York, Washington witnessed British troops slaughter captured American soldiers. At the Battle of Trenton, where U.S. forces captured Hessian mercenaries, Washington had the chance to punish them in the same manner. Instead, he ordered his soldiers to treat the Hessians humanely. U.S. troops risked their lives to safely escort these prisoners across the Delaware River.
  3. He was Health Conscious – Washington was always very health-conscious. The deadliest disease of Washington’s time was smallpox, an illness that Washington found deadlier than “the Sword of the enemy.” When he was appointed commander-in-chief of the Continental Army, he had all new soldiers inoculated for smallpox.
  4. He Played a Big Role in Establishing the Government – Part of Washington’s role as the nation’s first president was unifying the country. Washington acted swiftly and established the first United States Cabinet to advise him. He also played an integral part in the implementation of the U.S. Constitution and Bill of Rights, which guarantees rights to the American people.
  5. He Hated Slavery –Washington was firmly against the slave trade and put an end to the practice at Mt. Vernon. The former president then tried to ease the burden on his slaves by selling off mass parcels of land and change crops to diminish his need for intense human labor. Washington received little interest in his land, but he was finally able to legally release his slaves upon his death and the death of his wife.
  6. He Valued Religious Freedom – Washington did not want people to be persecuted against on the basis of faith and was a firm believer in religious freedom. America was to be a sanctuary for all people of all religious backgrounds. Washington fought for this belief, and helped establish freedom of religion during his presidency.
  7. He Supported Immigration – Washington was a staunch supporter of immigration. He believed that “America is open to receive not only the Opulent and respectable Stranger but the oppressed and persecuted of all Nations and Religions; whom we shall welcome to a participation of all our rights and privileges.” Washington passed the Naturalization Act of 1790. This law welcomed people of “good character” to immigrate into the U.S.
  8. He Lived by a Strict Code of Morality – George Washington was admired for his unfailing sense of morality. As General of U.S. forces, Washington pushed his men to be not only good soldiers but also good men. Washington’s most infamous moral act is perhaps when he refused to serve a third term as president because he believed no man should hold too much power.
  9. He Addressed Hostile Relations with Native Americans – After the American Revolution, many Native Americans still held resentment towards the U.S. Washington sought to address this resentment by signing the Treaty of Greenville. This treaty put an end to the ongoing Indian Wars. The treaty granted two-thirds of the territory from the Ohio River and Lake Erie to the U.S. In exchange, Native Americans received utensils, clothing and animals.
  10. He Eased Tensions with Spain – In early America, there were ongoing problems between Spain and the U.S. due to the Spanish occupation of New Orleans. Spain denied the U.S. access to the Mississippi River in an attempt to thwart trade. To resolve this issue, Washington signed Pinckney’s Treaty. The treaty allowed for the U.S. to sail ships on the Mississippi and for duty-free transport.

Why These Facts About George Washington Are Important

These facts reveal that, although known for being the face of the American Revolution, Washington was also an advocate of diplomacy. He spent the majority of his presidency trying to find diplomatic solutions to international conflicts. They also display his concerns with basic human issues such as morality, religious freedom and health. Washington spent his entire life trying to promote the importance of these issues, yet his efforts are often unheard of. These top 10 interesting facts about George Washington are important because they shed light onto the incredible efforts of America’s first president to fight for the causes he believed in.

Gabriella Gonzalez
Photo: Flickr

MIT's J-PAL LabOn a busy street in Cambridge, Massachusetts, an unassuming brick building houses the North American headquarters of the Abdul Latif Jameel Poverty Action Lab (J-PAL). Inside MIT’s J-PAL Lab, researchers analyze the results of randomly-designed experiments and the generalizability of their findings. Their test subjects? Social programs.

J-PAL and its Research

Anti-poverty work can take many forms: vocational training, credit access, education and the list goes on. Programs of various types can be valuable and worth funding, but because donors and organizations have limited amounts of funding, the relevant question is often not whether to support anti-poverty work, but how to support it. What programs are making the biggest difference? Where will a donation do the most good?

J-PAL co-founder Abhijit Banerjee puts it best in an interview with The Wire: “you have to basically focus on: where is the lever? That’s what we do, try to help find the lever, and then if you push the lever you go fast. But what [policy-makers] do is often… just hit everything and then some things hit the lever, some things hit the wall.” The strategy of “hitting anything” is certainly not useless, but to maximize impact, a person should concentrate on the mechanisms that maximize impact. J-PAL’s work is in locating the policy levers that will make a difference and encouraging policy-makers to use them.

MIT professors Abhijit Banerjee, Esther Duflo and Sendhil Mullainathan founded J-PAL in 2003 and it has grown quickly. As of 2019, J-PAL has a network of 181 affiliated professors around the world. A truly global organization, J-PAL has offices in Capetown, South Africa; Paris, France; Santiago, Chile; New Delhi, India; and Jakarta, India. J-PAL’s work focuses on researching the results of different cases of anti-poverty action to evaluate what is most effective and advise policymakers accordingly, and educating people about how and when to evaluate social programs.

J-PAL’s Approach

At its base, J-PAL’s approach is simple. Any case of policy-making has results, and by tracking actions and results in a large number of cases, one can determine which are successful and which are not, and therefore which to support in order to produce a maximum impact. Using this data, one can also attempt to predict the policies whose results could potentially be reproduced elsewhere. J-PAL’s methods also emphasize focusing on the mechanisms behind policies and not on specific details of a single scenario. Particular details vary from case to case, but human behavior does show certain patterns; in similar circumstances, policies that have worked before can work again.

J-PAL and its affiliated professors have performed over 900 evaluations and have developed a selection of case studies and other teaching resources to educate people about the analysis of social programs. Every year, J-PAL runs Evaluating Social Programs, a five-day course for policymakers, researchers and nonprofit workers that covers the basics of organizing scientifically sound evaluations and interpreting their results. Close to 50 people attended the 2018 course, which took place at MIT. J-PAL has also made the content of the course available online for free through the online education platform edX, allowing people around the globe to learn from J-PAL’s work. The case studies discussed in the course are also available on J-PAL’s website.

Moving Forward

MIT’s J-PAL Lab has encouraged the scaling up of policies ranging from remedial education in India, deworming in Kenya and community block grants in Indonesia. It also continues to study policy and advocate for effective social policies. The training that it provides for policy-makers allows them to maximize their impact in an economically efficient way. As J-PAL continues to grow, its affiliates will continue to find those levers.

– Meredith Charney
Photo: Flickr

Projects Reducing Poverty in Samoa

A little more than 18 percent of the Samoan population lives below the national poverty line. However, poverty in this nation is relative, with many suffering from the poverty of opportunity. Those living in rural areas are less likely to have access to education, clean water and health care. This lack of resources heavily contributes to poverty in Samoa. However, the country has made significant strides in the past decade. The poverty rate continues to fall from a high of 26.9 percent in 2008 with the help of projects that reduce poverty in Samoa.

3 Projects That Reduce Poverty In Samoa

  1. Catalyzing Women’s Entrepreneurship
    The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) helped launch a five-year effort to support the growth of women entrepreneurs. This strategy is set to aid poverty reduction, social well-being and sustainable economic growth. Currently, an estimated 24 percent of women in Samoa are involved in entrepreneurial activities.Yet, female entrepreneurs still face many obstacles to starting and operating their businesses. Access to finance is limited, and many women lack knowledge of the registration and tax procedures necessary to start or formalize their business. Identifying and overcoming these barriers will be vital to catalyzing women’s entrepreneurship in the country.
  2. Pacific Adaptation to Climate Change and Resilience Building (PACRES)
    Beyond the stunning natural beauty of the Pacific Islands, these countries are battling their fair share of economic and environmental issues, many of which are directly related to their status as Small Island Developing States (SIDS). SIDS are particularly vulnerable to natural disasters such as cyclones, floods and landslides. With most of the population and assets concentrated along the coastline, any one of those events can threaten both human lives and fragile economies.Climate change is exacerbating the situation, bringing more frequent and intense weather events, higher temperatures and rising sea levels. Pacific Island Forum Leaders have repeatedly identified climate change as the single greatest threat to the livelihoods, security and well-being of the peoples of the Pacific.Samoa is one of 15 pacific island countries that are a part of this project under the Intra-African Caribbean Pacific (ACP) Global Climate Change Alliance Plus (GCCA+) Program. The group aims to strengthen adaptation and mitigation measures at the national and regional level and support partner countries in climate negotiations.Additionally, the project efforts will improve information sharing and develop national capacity to address climate change and build disaster resilience through enhanced training, studies and research opportunities. Finally, PACRES will strengthen networks, share knowledge and engage the private sector to address climate change and build disaster resilience.
  3. Samoa Agriculture Competitiveness Enhancement Project
    Across the Pacific, people’s diets have changed dramatically over recent years. Fast food, flour and fizzy drinks are common on restaurant tables and supermarket shelves. Corned beef, imported cereals and fatty meat imports have become staple parts of the local diet.Aside from significant public health concerns, high dependence on food imports can come at a heavy expense, particularly given the distance of pacific island countries from larger markets. High dependence on global commodity markets to meet basic needs also leaves people vulnerable when global prices spike.But in Samoa, there are signs that things may slowly be changing. More restaurants in Apia—one of Samoa’s major cities—seem to be taking pride in selling traditional Samoan cuisine made from local produce. A recent recipe book, produced at the request of the Prime Minister, features an array of healthy Samoan dishes, while health promotion efforts look to inspire a growing interest in the origins of the food on people’s plates.Sponsored by the World Bank Group, the Samoa Agriculture Competitiveness Enhancement Project is working with farmers not only to increase their income but also to ensure that local produce captures a growing share of the domestic food market.It seems that the market is ripe for high-quality local food that is distinctly Samoan. With the right support, and with partners such as the Small Business Enterprise Centre and the Development Bank of Samoa, the project aims to ensure farmers can take advantage of open opportunities to connect with buyers, improve the value of their goods; and increase the market for fresh, healthy and ultimately local produce.

Together these projects that reduce poverty in Samoa are good for the economy and ultimately good for Samoa and could set an important precedent for greater self-sufficiency in Pacific island countries.

– GiGi Hogan
Photo: Pixabay

Five Facts About China’s Poverty Alleviation ProgramChina has contributed to more than 70 percent of poverty reduced globally, making it one of the countries with most people lifted out of poverty in the past four decades. China has also recently become one of the leading nations in poverty reduction efforts by implementing a poverty alleviation program. Here are five facts about China’s poverty alleviation program.

Five Facts About China’s Poverty Alleviation Program

  1. Main Goals: China’s main goals for this program are to address issues such as food security and clothing, compulsory education, basic medical care and housing. It wants to solve these issues by 2020. Additionally, by 2020 it wants to have a zero percent poverty rate in rural areas. Furthermore, the government wants to increase the income growth rate for farmers while also solving the regional poverty problem.
  2. Implementation of the Program: In order to achieve its goals, the government has focused on developing the economy through local industries, combating corruption within the poverty alleviation efforts and making changes to the education and healthcare systems as well. The Chinese government has registered the poor population in order to target the specific regions that need help the most while also tracking the progress being made. By targeting specific regions and having the entire poor population registered, the Chinese government can provide assistance to certain households or individuals. There are five parts of the poverty alleviation program which are being implemented to raise more people out of poverty and those are industrial development, relocation, eco-compensation, education and social security.
  3. Progress being made thus far:  As of 2019, more than “700 million people have been lifted out of poverty” according to the country’s national poverty line of $1.10 a day, which is more than 70 percent of the world’s poverty reduction efforts. When using the poverty line of $1.90 a day more than 850 million people have been lifted out of poverty between the years of 1981 and 2013. In 2016, more than 775,000 officials were sent out to different rural areas within the country in order to further development and aid the poor-stricken people living in the less-developed parts of China. This has proven successful given that, after this tactic was employed, the population living in rural areas that were still affected by poverty dropped to 30.46 million people. Additionally, the poverty incidence was also reduced to 3.1 percent. Although great progress has been made far ahead of the U.N.’s 2030 Sustainable Development Goals, China must still raise an additional 10 million people out of poverty in order to reach its 2020 goals of zero percent poverty.
  4. Citizens’ living conditions: China has worked closely with the International Labor Organization (ILO) to improve its citizens’ living conditions. It has done this by providing a better social security and welfare program which covers unemployment, pension, medical care, employment injury and maternity for urban employees. Additionally, this program includes what is known as the “Dibao,” the minimum living guarantee program, which ensures that even the poorest residents in either urban or rural areas would be supported by the government.
  5. Global impact: China’s poverty alleviation program is not only a domestic policy but also an international policy. It has benefitted many developing countries around the world. The Chinese government has provided about 400 billion yuan ($59 billion) in aid, which has benefitted 166 countries and international organizations. Additionally, more than 600,000 aid workers were sent overseas to contribute to the poverty-reduction efforts. China has also pledged $2 billion to the Assistance Fund for South-South Cooperation in order to support developing countries to reach the U.N.’s 2030 Sustainable Development Goals.

As a result of China’s poverty alleviation program, people countrywide are overcoming the challenges of poverty. Not only is the percentage of poverty globally declining because of China’s efforts but people are also thriving. China is the only country worldwide to have improved its citizens’ living conditions to such an extent in such a short period of time.

Laura Rogers
Photo: Flickr

Energy Poverty in BangladeshBangladesh was recently promoted from a lower income country to a lower middle-income country as per the World Bank’s GDP per capita benchmark. Bangladesh’s economic growth rate remained around 6.5 percent in 2012 to 7.3 percent in 2017.

The demand for electricity rose, as a result, thrusting the government into focusing on eradicating energy poverty in Bangladesh. However, misuse and improper management of energy contributed to the shortage of electricity and load shedding became a daily phenomenon.

Here are some additional facts about energy poverty in the country:

Only around 59.60 percent of the people in Bangladesh have access to electricity with 180 kilowatt-hours of energy per capita in use, which is very low compared to other countries. Rural areas tend to suffer more as they face more load shedding than urban areas.

Bangladesh heavily relies on natural gas and furnace oil, followed by coal, for electricity generation. As of February 2017, the installed power capacity shows the reliance on natural gas is of 62 percent.

This raises concerns over energy security due to the increasing fuel imports and high dependence on coal and gas for electricity generation. Yet, the country has been failing to meet its electricity demand. Therefore, it is trying to focus on meeting its energy needs and providing access to electricity all over the country.

Progress in Eradicating Energy Poverty in Bangladesh

In September 2018, there was significant progress in eradicating energy poverty in Bangladesh when the country managed to meet its energy production target of 20,000 MW. Bangladesh also set a new target of generating 24,000 MW of electricity by 2021, 40,000 MW by 2030 and 60,000 MW by 2041.

As of 2018, the number of power plants amounted to 108, a significant increase from the 27 power plants in 2009. Bangladesh ranked 90th among 115 nations on the global Energy Transition Index (ETI) which benchmarks countries on how well they balance their energy security and access with environmental sustainability and affordability.

Bangladesh made progress due to a strong political commitment, a stable policy regime, the use of grid expansion and generation sources and an investment-friendly environment in the infrastructure sector.

Some Upcoming Projects for Eradicating Energy Poverty in Bangladesh

  • Rooppur Nuclear Power Plant – Bangladesh’s first nuclear power plant, the Rooppur Nuclear Power Plant (RNPP) project, is being constructed in Rooppur, a remote village on the western side of Bangladesh in the Pabna District. The Bangladesh Atomic Energy Commission (BAEC) implemented the project under the Ministry of Science & Technology. The project is apart of an intergovernmental agreement between Bangladesh and Russia. The nuclear power plant of 2,400 MW capacity, with two reactors of 1,200 MW each, is one of the major efforts in eradicating energy poverty in Bangladesh. The project’s expected completion is by 2024.
  • Matarbari Coal Power Plant – The 1,200 MW Matarbari coal-fired power plant project, implemented by the Coal Power Generation Company Bangladesh Ltd (CPGCBL) and assisted by the Japanese International Cooperation Agency, will use imported coal to generate power. The plant will have two units, each having a production capacity of 600 MW. The project will also include a deep sea-port.
  • Rampal Thermal Power Plant – This 1,320 MW coal-fired power plant in Bagerhat district of Khulna is a joint venture between India’s National Thermal Power Corporation and Bangladesh Power Development Board. It is expected to be the country’s largest power plant.

Expansion of Renewable Energy

On March 1, 2019, the World Bank approved $185 million to add up to 310 MW renewable energy generation capacity and also to mobilize around $212 million from the private sector, commercial banks, and other sources to meet the increasing demand for electricity. The Scaling-up Renewable Energy Project in Bangladesh by the World Bank will build the first 50 MW segment of a large solar panel energy park in the Feni district. This project should provide better access to clean energy and cut emissions by an equivalent of 377,000 tons of carbon dioxide per year.

With the rapid economic growth in the country, Bangladesh has made some notable progress in addressing its growing electricity demand. Through increased diversification of its energy mix and more ambitious projects on the way, major accomplishments are expected in eradicating energy poverty in Bangladesh.

Farihah Tasneem
Photo: Creative Commons

Similarities and Differences Between a Charity, Non-profit Organization and Philanthropy
To get a better understanding of the different ways in which one can contribute to the community, it’s important to know the similarities and differences between charities, nonprofit organizations and philanthropy.

A large part of progress in the world is due to humanitarian aid and contribution, whether it be people donating money or food to the less fortunate or people coming together to work for and promote human welfare. Charities, nonprofit organizations and philanthropy are important to communities because each is effective in bringing positive change and offers valuable opportunities and programs to people.

Giving USA reports that charitable donations surged to an estimated $410.02 billion in 2017, a major increase of 5.2 percent from $389.64 in 2016. This is the first time that Giving exceeded $400 billion in one year.

While charities, nonprofit organizations and philanthropy can be used interchangeably and are similar in that each brings positive change, they differ significantly in the way they operate.

Charities

A charity is an immediate but emotional monetary donation or short-term contribution usually intended for crisis and relief efforts and supported completely by the public.

People usually donate to a charity that they have a personal connection to or are emotionally affected by. For instance, if a person is deeply concerned about animals, he or she may give a monetary donation at a local animal shelter.

According to Score, one of the ways to understand the differences between charities, nonprofit organizations and philanthropy is to remember that a nonprofit’s purpose is educational or religious and if its funds promote a cause that affects the general public and uses public solicitation to operate, it is most likely a charity.

Examples of donations to a charity include giving money or food to a homeless shelter, donating to an animal shelter, giving money to The Salvation Army bell-ringers outside one’s local supermarket during the holiday season, etc.

Nonprofit Organizations

A nonprofit organization and a charity are similar in that they both operate on a not-for-profit basis but differ based on whether it is tax-deductible and even in the way it operates. A charitable donation can count as tax-deductible while nonprofit organizations have to meet certain requirements and file with the IRS as a charitable organization.

A popular nationwide nonprofit organization is the American Red Cross. The American Red Cross website states that a donor’s donation goes toward strengthening the Red Cross response to nearly 64,000 disasters a year, providing a safe place, food and other necessities to affected individuals and their families. In 2016, the Red Cross provided 385,000 emergency assistance services, gave millions CPR and AED training and supplied 7 million blood products to patients in need.

Philanthropy

One way to remember the differences between charities, nonprofit organizations and philanthropy is by understanding that charities and nonprofits give/contribute while philanthropy involves action. For instance, while a charity can be a quick one-time donation to a school, philanthropy would work toward providing academic scholarships to students or funding to build a better school. Charities aim to lessen the suffering caused by social problems while philanthropists work toward ending social problems.

According to Medium, philanthropy is a long-term strategic investment and intervention dedicated to building long-lasting and successful change in individuals and communities.

While many think a philanthropist is someone who donates large amounts of money to an organization, a philanthropist can be somebody devoted to ending a certain social problem and promoting human welfare.

Impact and Importance

Although there are several differences between charities, nonprofit organizations and philanthropy, the important part is that all of these are effective in building a more efficient and progressive world. It doesn’t matter if someone donates to charities or nonprofit organizations or decides to become a philanthropist, what matters is their contribution serves to help those in need and is also another step toward progress.

– Kristen Uedoi
Photo: Flickr

 

Retired international soccer star George Weah won the Liberian presidential election on December 26, 2017, succeeding Nobel Peace Prize Laureate Ellen Johnson Sirleaf. The election marked the first peaceful transfer of power in Liberia since 1944.

President-elect Weah defeated Vice President Joseph Boakai, 73. Weah, internationally known for earning the African, European and World Player of the Year in 1995, has served as a senator since 2015. Weah, 51, received the most votes in the first round of the presidential election in October 2017.

Liberty Party nominee Charles Brumskine, who received less than 10 percent of the vote, delayed the final round of voting by accusing election fraud in a case that went to the Liberian Supreme Court. Multiple bodies, including the National Election Commission, found the election was fair. The U.N. Security Council and the White House delivered public statements commending the peaceful transfer of power in Liberia and praising the Liberian people and government.

Liberia, a country founded by freed American slaves, has experienced decades of civil war, and the 2014 Ebola epidemic killed more people in Liberia than anywhere else in the world. The West African nation is currently facing extreme poverty and issues stemming from it.

Liberia has the seventh-highest maternal mortality rate, female genital cutting affects more than two-thirds of women and girls and less than 50 percent of the population older than 15 can read and write. Moreover, 60 percent of the population is under 25. Nevertheless, the U.N. reduced its troop presence in Liberia in July 2016, and the country has the highest annual reduction rate in infant and child mortality in Africa.

In his victory speech, Weah applauded the Liberian people and said, “[T]he best way to celebrate Liberians is to improve their lives…through public governance.” He encouraged investors to come to Liberia and stressed the importance of private investment in rebuilding the economy.

Weah also thanked his predecessor, Johnson Sirleaf, who became the first elected female African head of state in 2005. “We promise to follow your footsteps in protecting the rights of Liberians and providing even greater freedoms,” Weah said.

Weah’s Vice President Jewel Howard-Taylor sat next to him during his victory speech. Howard- Taylor’s ex-husband is serving a 50-year prison sentence for crimes against humanity. However, she proved to have vastly different policy ideas than her previous partner during her tenure as a senator.

While Weah certainly will face obstacles during his administration, the global community is hopeful that progress will continue in Liberia. Democratic leaders have a renewed sense of optimism for the country after this peaceful transfer of power in Liberia.

– Sean Newhouse

Photo: Flickr

US House of Reps Passes Digital GAP Act
The U.S. House of Representatives passed the Digital Global Access Policy Act or the Digital GAP Act (H.R. 600) on January 24, just a day after the bill was reintroduced by House Foreign Affairs Chairman Ed Royce (R-CA-39). The legislation is aimed at promoting internet access in developing countries to spur economic growth and job creation, reduce poverty and improve health while advancing U.S. interests.

In today’s technology-driven world, internet access is a major driver of economic and social improvement. However, 4.2 billion people remain offline — about 60 percent of the world’s population, most of whom are in developing countries. In these areas, internet access is hindered by inadequate infrastructure and a poor regulatory environment, stifling the potential for sustainable growth and development.

The Digital Global Access Policy (GAP) Act seeks to promote first-time access to mobile or broadband internet for at least 1.5 billion people in both urban and rural areas of developing countries by 2020. It aims to do this is a variety of ways, including:
  • Removing tax and regulatory barriers to internet access.
  • Promoting internet deployment and related coordination, capacity building, and build-once policies and approaches in developing countries.
  • Promoting the use of the internet to increase economic growth and trade, along with democracy, government accountability, transparency and human rights.
  • Promoting inclusive internet policymaking for women, people with disabilities, minorities, low-income and marginalized groups and underserved populations.

On the House floor prior to the vote, Chairman Royce noted that women and girls are disproportionately affected by this digital gap. He said that “bringing 500 million women online could contribute up to $18 billion in GDP growth across 144 countries. That is how you reduce poverty; that is how you advance U.S. interests.”

In addition to Rep. Royce, Representatives Cathy McMorris Rogers (R-WA-5), Grace Meng (D-NY-6) and Eliot Engel (D-NY-16) were also listed as original cosponsors of the bill.

The Borgen Project commends the House for making this legislation a priority in the new year and urges the Senate to move swiftly to get this bill to the President’s desk.

– Kim Thelwell