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12 Facts About Poverty in Europe

Facts About Poverty in Europe
Although the European Union (EU) largely consists of many advanced nations, it is important to remember that these nations are still affected by poverty. Many countries were affected by the euro crisis that began in 2008 and are still suffering its consequences.

12 Facts About Poverty in Europe

  1. One in four Europeans experiences at least one form of poverty. Forms of poverty include income poverty, severe material deprivation, very low work intensity and social exclusion. Income poverty is the most common form of poverty in Europe, affecting 17.3 percent of people. One hundred eighteen million people (23.5 percent) of the EU-28 population were at risk of poverty or social exclusion, with 43 million of those not able to afford a quality meal every second day. This is known as severe material deprivation.
  2. Social exclusion is the lack of social resources and rights available to most people as a result of poverty or being part of a minority group. In 2015, more than a third of the population was at risk of poverty or social exclusion in three EU countries: 41.3 percent in Bulgaria, 37 percent in Romania and 35.7 percent in Greece. The countries with the lowest risk were the Czech Republic at 14 percent and Sweden at 16 percent.
  3. The poverty line is the minimum level of income needed to secure the necessities of life and differs greatly for each European country. An average of 9.8 percent of people in the EU live below the poverty line. The country with the lowest amount of people living below the poverty line is Austria at four percent, and the highest is Greece at 36 percent. This is one of the 12 facts about poverty in Europe that reveals the enormous gap between wealthier and poorer countries in Europe.
  4. The unemployment rate in Europe is only around seven percent. According to Eurostat, some countries rank above this average with Greece at 20.9 percent and Spain at 16.3 percent. In 2016, 48.7 percent of people who were unemployed were at risk of poverty. Unemployment also makes people more at risk of severe material deprivation.
  5. Poverty in Europe is not limited to those who are unemployed. In 2015, 7.7 percent of the EU population was at risk of poverty despite working full-time, with men more at risk than women. Romania has Europe’s highest risk of in-work poverty with a rate of 18.9 percent. Spain and Greece follow with 13.1 percent and 14.1 percent, respectively. Additionally, the in-work poverty risk has increased from 8.3 percent in 2010 to 9.6 percent in 2016.
  6. Women have a higher risk of poverty in Europe. The number of women suffering from poverty or social exclusion in the EU was 1.9 percent higher than men in 2015. Additionally, young people between the ages of 18 and 24 are more at risk of poverty or social inclusion with a risk of 30.6 percent.
  7. In 2015, almost 50 percent of all single parents in Europe were at risk of poverty or social exclusion, which is twice as much as the risk for any other household.
  8. Foreigner-born residents (39.2 percent) are at a higher risk of poverty or social exclusion than native citizens (21.6 percent). In Italy, the number of foreigners at risk is particularly high at 55 percent.
  9. Children below the age of 18 also have a high rate of poverty or social exclusion, at 47 percent, with 26 million children in the EU living at risk of poverty or social exclusion. Child poverty in the U.K. has reached its highest level since 2010, reaching 30 percent.
  10. Even with the economy improving, one in three people in Spain still lives in poverty, which is defined as living on €8,000 or less per year. Children are also at a higher risk of poverty in Spain. In Andalusia, a Spanish province, child poverty reached 44 percent.
  11. Italy has the most people at risk of poverty in Europe. This amount rose from 15 million to 18 million people since the 2008 crisis, with over 4 million people living in absolute poverty.
  12. The heads of government in the EU adopted the Europe 2020 Strategy in 2010 to address poverty. The goal of this was to lift at least 20 million people out of the risk of poverty and social exclusion by 2020.  Unfortunately, this goal has not been reached and the situation has gotten worse instead of better. There has been an increase in poverty in the EU over the past years. In 2009, there were 117 million people and 27 EU member states at risk of poverty or social inclusion in the EU Since then, there has been an increase of 1.6 million people and one country.

Although these 12 facts about poverty in Europe may introduce a growing problem, the EU along with the European governments are taking active steps to fight this problem. Several countries’ economies are now expanding and showing improvement since the crisis. This includes Spain’s economy, which now has a predicted growth of 2.5 percent in 2018. It is imperative to continue to provide foreign aid and assistance in order to ensure that U.S. allies continue to grow and move past the repercussions suffered after the crisis.

– Luz Solano-Flórez
Photo: Flickr

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Programs Across the World Address Poverty in the Philippines


Despite the rising economic growth rates in the Philippines, poverty in the Philippines continues to prevail nationwide. According to the Asian Development Bank (ADB), 21.6 percent of Filipinos live below the national poverty line.

There are many factors that create and maintain the cycle of poverty in the Philippines. Unemployment is one of the main reasons that poverty reduction has not kept up with the country’s growth. Alongside an increasing population, job resources remain insufficient for millions of Filipinos.

The Philippine poverty condition remains a challenge due to the government’s lack of capacity to establish sustainable poverty reduction programs. Governments from other countries, alongside international institutions, have implemented strategies aimed to tackle the Philippine poverty crisis. These programs share the common goal of alleviating poverty in the Philippines by addressing unemployment in the country.

The World Bank

The World Bank plays a large role in working towards eradicating poverty in the Philippines. One of the projects financed by the World Bank is the ‘Philippine Rural Development Project.’ The goal of the project is to create greater work opportunities for Filipinos in the rural areas by supporting farmers and fishermen through improving their access to markets.

As of last year, results from The World Bank reported an increase in household incomes for farmers and fisherfolk beneficiaries. As of January 2018, this project has been approved for additional financing to continue its contribution in addressing poverty in the Philippines.

The United States of America

USAID has established the Philippine-American Fund (Phil-Am Fund) as a strategy to tackle poverty in the Philippines. One of the program’s objectives is to develop solutions to the country’s economic challenges. The Phil-Am fund financially supports  Philippine organizations to support business start-ups.

This strategy to address the poverty crisis promotes entrepreneurship by offering a self-sufficient facility for citizens who do not have the capacity to take part in the province’s economic activities.

As of last year, the Phil-Am fund has managed to support the establishment of start-up businesses, provide training in standards for food-related establishments and has integrated more efficient farming technology in the Philippines.

Australia

Australia’s foreign aid to the Philippines includes ‘The Philippines’ Sustainable Livelihood Program’ (SLP), which helps Filipino families by providing employment assistance. The SLP also helps Filipino citizens start at enterprise — an approach that encourages self-sufficiency.

Australia’s aid program aligns with the Philippine government’s goal to tackle poverty and promote development. Sustainable livelihood is the primary goal of this program, and includes micro enterprises, skills training and pre-employment assistance.

Filipinos who take part in this program have agency and decision-making responsibilities by providing access to microenterprise development and employment. SLP has become an efficient platform for productivity and development and since its establishment in 2011, SLP has achieved 97 percent of targeted program participants.

Promotion of Autonomy

The above-mentioned programs designed to address the Philippine poverty crisis all share one feature: the encouragement of self-efficiency. Rather than providing charity to the Filipino citizens living in poverty, these programs empower the people by giving them access to opportunities. The citizens are provided with the agency to take control of their work, promoting an inclusive form of development.

– Dane de Leon

Photo: Flickr

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Top 5 Facts about Living Conditions in Swaziland

Top 10 Facts about Living Conditions in Swaziland

Swaziland has endeavored to increase employment and economic growth. Among these efforts, still more work needs to further these goals and priorities. One area that the country has made progress in is improving living conditions in Swaziland by reducing the number of people living below the poverty line. With continued effort, Swaziland can make positive steps in strengthening its healthcare system, increasing employment rates and economic growth and increasing the retention rate of girls in school. These top 5 facts about living conditions in Swaziland will show where they are succeeding and where they need more work.

Top 5 Facts about Living Conditions in Swaziland

  1. In Swaziland, unemployment rates, in general, have not changed much in the past few years, hovering around 26 percent. There are further discrepancies between unemployment rates for women. For example, in 2007 and 2010, the rates stayed level around 30 percent. For men, however, the rates between 2007 and 2010 were 24.0 percent and 22.7 percent. There is still more work to be done in increasing youth employment. In fact, Swaziland has one of the highest youth unemployment rates in Africa. The unemployment rate has remained higher than 50 percent since 2007. Specifically, working to reduce youth unemployment is a major part in helping reducing unemployment as a whole. Solutions to decrease youth unemployment are tertiary reforms and increasing vocational and on-the-job training. In addition, adding more growth to the private sector is key to helping to create high paying and productive jobs. Companies like Orange and OpenClassrooms are working to provide digital education to Africa’s youth to help young people find jobs in the tech markets.
  2. There has been some progress made in the living conditions in Swaziland by reducing the number of people living below the poverty line. According to the Swaziland Household Income and Expenditure Survey, the percentage of people living below the poverty line was 69 percent in 2001. However, the percentage had dropped by more than half to 30 percent in 2015. These numbers represent, on average, 20 percent for those living in urban areas, but for those living in rural areas, it was as high as 37 percent. Reasons for such high poverty rates were the decrease in incomes, the stagnation of private consumption and the decrease in the GDP.
  3. As a whole, economic growth has declined in Swaziland. Real GDP growth decreased from 1.3 percent in 2016 to 1 percent in 2017. Economic growth was projected to be at 1.5 percent in 2018. Factors that have contributed to the decline in economic growth are low demand from pivotal export market destinations, especially from South Africa and Eurozone. In addition, the sector also experienced a decline in economic growth and a loss of eligibility in status to trade under the African Growth and Opportunity Act Arrangement. Swaziland’s average GDP annual growth rate had been its highest in 1990 at 21 percent, but it dropped significantly down to .7 percent in 2016. Fortunately, the GDP annual growth rate had risen up to 2.3 percent in 2017.
  4. The healthcare system consists of formal and informal sectors. Health practitioners and general service providers make up the informal sector while industry, private and public health services as well as nongovernmental organizations make up the formal sector. Swaziland puts around 3.8 percent of its GDP towards healthcare, the government providing 65 percent of the money, which is about 2 percent of its GDP. The federal budget was increased from 7 percent in 1998 to 9 percent in 2009.
  5. There still is more work to be done in closing the gender gap in education. Swaziland’s educational levels are primary education, secondary education, vocational education and tertiary education. Although there is not a great disparity between boy and girls attending primary, dropout rates do tend to rise by year 5 of secondary school. More work needs to be done in increasing the retention rates for both girls and boys in school, although more work is needed for female retention. While there are not as many obstacles for girls starting school, there are numerous obstacles that hinder girls from staying in school. Between the ages of 15 and 19, 50 percent of girls will not have completed secondary school, compared to 39 percent of boys. Some of the obstacles are poverty, the HIV/AIDS pandemic and gender insensitivity. Furthermore, more than two-thirds of families live in poverty, and many find difficulties in paying for school fees and other costs.

These 5 facts about living conditions in Swaziland show that, while there is more work to be done in areas of employment, economic, growth and education, there has been notable progress in helping to improve the living conditions of the people. One area that has seen progress is the reduction of the number of those living below the poverty line. With more effort, Swaziland can see positive developments in helping the lives of all people.

– Daniel McAndrew-Greiner

Photo: Flickr

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Free School Meals Alleviating Hunger in Guam

Hunger in GuamGuam is a small island and a U.S. territory located southeast of Japan with a small population of about 163,000 people. Because of the small population, hunger in Guam has a much higher impact. Thankfully, things are looking up for Guam as rising employment rates and school programs are helping the hunger situation in Guam.

One of the more impactful programs in Guam that is fighting the hunger situation is that all 26 elementary schools in Guam serve meals for free. This free meal plan is provided through the federally funded Community Eligibility Provision grant that is provided by the U.S. Department of Agriculture.

This program feeds elementary students so they are focused and ready to participate in classes by giving them the nutrition they need. Some middle and high schools are also participating in the free meal program. The First Lady of Guam, Christine Calvo, wants to stamp out child hunger in Guam by expanding this program to all schools.

With unemployment, food insecurity becomes an issue. Food insecurity is when people are without reliable access to affordable or nutritious food. Unfortunately, people need to spend money to eat, and if people are unemployed, they cannot do so.

However, Guam has decreased its unemployment rate quite drastically. From June 2015 to June 2016, the unemployment rate in Guam dropped from 8.7 percent to 3.9 percent, a 55 percent decrease in unemployment. Because of this decrease, food insecurity has become less of an issue and more people know where their next meal is coming from.

Although hunger in Guam used to be a major issue, solutions are being implemented to help those in the country. Implementing free meal programs in schools and decreasing unemployment are important steps to alleviating hunger in Guam. If the free meal program expands to all schools and the unemployment rate continues to drop, hunger could become a thing of the past for the people of Guam.

– Daniel Borjas

Photo: Flickr

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Fighting Increases in the Saint Lucia Poverty Rate

Saint Lucia Poverty Rate

Globally, there are 103 countries that exist in the middle of the range between great prosperity and extreme poverty. Middle-income countries face the challenges of not being entrenched in extreme poverty but still dealing with issues surrounding poverty. Saint Lucia is an example of a country that has achieved middle-income status, yet has stagnated over the past few years.

Saint Lucia, which belonged to the British until 1979, sits in the waters of the Caribbean and is home to around 170,000 people. Saint Lucia’s GDP hovers at approximately $2 billion and its gross national product per capita is over $7,000. After the financial crisis of 2008, Saint Lucia‘s economy lagged during the latter half of the 2000s.

As a result, unemployment in the past few years has increased to 25%, with youth unemployment increasing to 15%. Saint Lucia has a mid-level Human Development Index, meaning that its quality of life has increased slightly, to a rank of 92 out of 188 countries. In accordance with the unemployment rate, the poverty rate was around 35% in 1995, but has declined since.

By looking at the Saint Lucian economy, it becomes easier to understand the Saint Lucia poverty rate. Saint Lucia has a primarily agricultural economy and it mainly exports bananas, mangos, coconuts and various vegetables. The banana industry was quite successful in the 1990s; however, the industry has weakened. Banana farmers have faced stiff competition from neighboring countries as well as foreign markets. The weakening of this sector has led to a slight increase in poverty.

Government Efforts at Poverty Reduction

The government has tried to tackle the Saint Lucia poverty rate by introducing policies to alleviate the burden of households in the country. The Saint Lucia Social Protection Policy was introduced in 2015 in order to strengthen social programs in Saint Lucia, as well as create a conditional cash transfer program that helps households obtain appropriate funds to survive.

With its friendly policies towards foreign investors, the government has also encouraged foreign investment and tourism throughout the country. The country hosts numerous “free zones” which allow private firms to operate outside of legislative boundaries. These areas can provide another source of employment for the population.

The island nation has a strong tourism industry; nearly 60% of jobs center around tourism and hospitality. This is similar to much of the Caribbean, and Saint Lucia is no exception. Natural disasters can decreases revenues from tourism, making Saint Lucia’s economy very weather-dependent.

While the Saint Lucia poverty rate serves as an important indicator, the growth of the tourism industry also plays a large role in understanding economic growth in Saint Lucia. Saint Lucia’s economic growth has helped increase its quality of life and the well-being of its citizens, but more government involvement could increase its numbers even more. Overall, developments in Saint Lucia have helped move along development globally.

– Selasi Amoani

Photo: Flickr

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Inequality: Causes of Poverty in Liechtenstein

Immigrant In-Equality: Causes of Poverty in Liechtenstein

The Principality of Liechtenstein is a country located in Europe that is landlocked between Switzerland and Austria. It is a relatively wealthy country, containing one of the highest measures of GDP per capita in the world, a low inflation rate and the benefits of a monetary and economic union with Switzerland. It therefore has one of the highest standards of living across the globe, although it comes with the trade-off of an extremely high cost of living.

Much of the country’s wealth can be attributed to its status as a tax haven, though it has taken steps in recent years to regulate and rid itself of this image and to reposition itself as a legitimate financial center. Despite the country’s economic successes, there is still poverty to be found here.

The causes of poverty in Liechtenstein become evident when analyzing the immigration policies put in place by the country’s government. In 2013, many media outlets in Europe began to report that the growing immigrant population was composed of many low-income families. This is mainly due to the increased share of the population that are immigrants, with the incomes earned by these immigrants being lower than those of the native population. This has caused the overall income growth of Liechtenstein to be subjected to downward pressure in recent years.

The unemployment rate of immigrants in Liechtenstein is approximately twice as large as it is for national citizens that have lived in Liechtenstein for their entire lives. In terms of how this applies in practice, one in two unemployed persons living in Liechtenstein is an immigrant. Despite these concerns, compared to other European countries, Liechtenstein remains in a prosperous position and the unemployment rate in general is at a very low level. As of 2012, the average unemployment rate faced by the country was 2.4 percent, with the unemployment for national citizens being 1.7 percent, compared to immigrants, who had an unemployment rate of 3.5 percent.

This is the result of a restrictive immigration policy based on bilateral agreements and clear economic considerations, combined with the insatiable job demand of Liechtenstein’s economy. One of the essential guidelines for immigrants is that there is a requirement for the person immigrating to have the ability to support one’s own cost of living when applying for residence. This means that the onset of poverty usually occurs sometime after having immigrated, with the main reasons for poverty ultimately being unemployment, illnesses, death of an employed family member and excessive indebtedness.

A relevant quote by economist John Kenneth Galbraith rings true with poverty in Liechtenstein, in which he writes, “people are poverty-stricken when their income, even if adequate for survival, falls markedly behind that of the community.” This is one of the main causes of poverty in Liechtenstein and it illustrates an area that can be improved upon, leading to a greater equality of wealth between national citizens and immigrants and less poverty overall.

– Drew Fox

Photo: Flickr

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What Causes Poverty in San Marino?

What Causes Poverty in San Marino?San Marino, which is said to be the world’s oldest republic, is a tiny country landlocked by Italy. At only 23.6 square miles, San Marino is the fifth smallest country in the world, only larger than Vatican City, Monaco, Nauru and Tuvalu. It is also one of the richest countries in the world, with an estimated 2016 GDP per capita of $59,500. Despite its wealthy status, the 2008 recession, from which the country is still recovering, has significantly increased poverty in San Marino.

San Marino‘s main economic activities are tourism, banking and the manufacture and export of different goods such as clothing, ceramics, fabric, wine and spirits. As it is surrounded by Italy, most of San Marino’s economic sectors are highly supported by this nation; in fact, 90 percent of San Marino’s export market is supported by Italy. As Italy also suffered from the 2008 recession, its demand for imports from San Marino has lessened, which has in turn weakened San Marino’s economy.

After the recession, San Marino’s strong economy took a downward turn. Unemployment – which had been at its lowest in 2007 at three percent – jumped to 4.5 percent by 2009 and reached its peak of 9.2 percent in 2015. While poverty is not a major issue in San Marino compared to many other countries, the recession certainly caused a notable increase.

Although San Marino’s poverty rate is low enough that it is not necessarily significant enough to be recorded, it is likely that such a rapid increase in unemployment led to hardship for a significant portion of San Marino’s population. Increases in unemployment cause greater stress for the individual and strain the government, as it puts more pressure on the government to support those who are unemployed. Additionally, it weakens the economy further, as those who are unemployed lose purchasing power. Since San Marino’s peak unemployment in 2015, unemployment has started to drop, with the unemployment rate in 2016 at 8.6 percent.

Although the recession caused an increase in poverty, the government of San Marino has been working to curb the effects of the recession by eliminating its status as a tax haven. As other countries have bounced back from the recession, demand for goods from San Marino has increased as well. Hopefully, as more countries start recovering, this will also help San Marino’s economy recover so that progress can be made regarding its poverty rate.

– Mary Kate Luft

Photo: Flickr

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The Success of the Pantawid Pamilyang Pilipino Program

Pantawid

The Pantawid Pamilyang Pilipino Program (Bridging Program for the Filipino Family) is a national initiative that serves as the Philippine government’s flagship program in its campaign against poverty and hunger in the country. The program is modeled after the conditional cash transfer (CCT) programs implemented in Brazil (Bolsa Familia) and Mexico (Oportunidades), a model which provides aid to poor families by supplementing low household incomes.

Under the program, household beneficiaries receive 500 pesos ($10 USD) per month and 300 pesos ($5 USD) per child every month for the duration of the academic year. For households with three children, cash grants can amount to as much as 15,000 pesos ($300 USD) annually.

Household eligibility is determined through the National Household Targeting System for Poverty Reduction, which locates the poorest municipalities in the country. Households in municipalities with a poverty incidence rate higher than 50 percent are automatically put on a list for eligibility assessment, while other households who may be eligible can apply for assessment. Local representatives from the Department of Social Welfare and Development assess the economic situation of the household by obtaining information on home facilities and assets, the education and livelihood of the household head and the household’s income.

To stay eligible for the transfer payments, households must spend a portion of these grants on pre-natal and post-natal care for pregnant women, regular checkups and vaccines for children aged 0-5 and bi-annual deworming pills for children aged 6-14. They must also have an 85 percent monthly attendance rate for children subsidized by the program and attend family development sessions, which involve discussions on responsible parenting and health.

The program has done wonders for the poor in the country, especially for households from the country’s 16 poorest provinces. In these provinces, most of which are in the southern island group of Mindanao, 37 percent of families were reported to be hungry due to insufficient income or unemployment. Most of the areas in Mindanao are also marked by civil unrest, where almost no opportunity for stable employment is available. In the Autonomous Region of Muslim Mindanao (ARMM), half of the population lives below the country’s poverty line, earning just over 30 pesos ($.60 USD) a day. 58 percent of households were reported to be unable to access or acquire food.

With these rates of poverty and hunger incidence, the former Aquino administration made it a point to make the poorest provinces its priority areas for rapid development and investment. As of August 2015, a vast number of Pantawid beneficiaries are from ARMM, with 448,757 people enrolled in the region (around 10 percent of active beneficiaries). The rest of Mindanao has around one million beneficiaries, while 20 of the 25 top Pantawid beneficiary provinces were on Aquino’s list of priority areas.

Almost a decade after the program started, the Pantawid has grown from a startup welfare project to the third largest CCT program globally, with 4,353,597 active beneficiaries. It has done well in its effort to diminish poverty rates in the Philippines. The 2013 Annual Poverty Indicator Survey conducted by the Philippine Statistics Authority revealed that the national poverty rate of 25 percent could have increased by 2 percent without the program, while the extreme poverty rate would have risen 1.4 percent without the Pantawid’s benefits.

The same report reveals that the poverty gap index—the gap between incomes of poor families and the national average—fell by 61 centavos per peso cash grant just five years after the program’s onset.

Several domestic and international organizations have expressed their praise of the Pantawid. A study by Dr. Anticeto Orbeta and Dr. Vicente Paqueo of the Philippine Institute for Development Studies suggests that besides the benefits of additional household income, the Pantawid has actually increased the desire for work in household heads and has increased school participation and performance in children aged 5-14.

Such is the trust of the World Bank in the long-term success of the Pantawid that in early 2016, it bestowed upon the Philippine government a 21-billion-peso ($43 million USD) loan to be allotted to the program.

Incumbent president Rodrigo Duterte, a staunch enemy of his predecessor Aquino, has reinforced his commitment to the program. During his presidential campaign last year, Duterte promised to give one sack of rice to each Pantawid beneficiary household. His government is now working towards giving 600 pesos worth of rice allowances on top of the original cash grant allotment.

The Pantawid Pamilyang Pilipino Program is the first of its kind. Many anti-poverty initiatives have failed to produce the desired results, and almost none have united leaders from all political fronts to root for its success. Despite the great divisiveness that has characterized contemporary Philippine politics, all agree that the eradication of poverty and hunger is something to work towards, and that the campaign to do so should be a top priority.

– Bella Suansing

Photo: Flickr

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Causes of Poverty in Croatia

Causes of Poverty in Croatia
Croatia, a beautiful country home to numerous tourist destinations, is quickly becoming the EU’s poorest and slowest growing nation. With 19.5 percent of the population below the poverty line and an unemployment rate of almost 12 percent, the situation is dire.

While these numbers may not seem especially concerning, they are deceiving, as significant income disparities exist in Croatia. The poor in Croatia experience greater income differences among themselves than most countries. Those living in small towns in the east and southeast regions and in rural areas are especially at risk.

These areas suffered the most from the Homeland Wars in the 1990s. The wars and the corrupt privatization of state-owned companies hurt Croatia’s industrial sector. Once an industrial powerhouse, Croatia now has turned to a less dependable and less lucrative service-based economy that relies on tourism for jobs and income.

 

Main Causes of Poverty in Croatia

 

  • Rising Foreign Debt: Croatia’s external gross debt has risen to €46.4 billion, which equals 108 percent of the annual GDP and is an all-time record. The debt is still trending upward and shows no sign of stopping. Consequently, Croatia’s credit rating continues to drop and the country cannot accumulate as much of the foreign aid it desperately needs.
  • A Six-Year-Long Recession: The Great Recession of 2008 severely impacted the Croatian economy for years. During this period, child poverty increased by more than 50 percent. The recession exacerbated issues already present in the Croatian economy and is a large reason why the country’s growth rate remains under 2 percent. Furthermore, the poor economic performance has contributed to a doubling of the public debt that has resulted in high taxes and fewer jobs.
  • High Unemployment: The last of the main causes of poverty in Croatia is high unemployment, especially among youths. Among those aged 15 to 24, Croatia has the third highest unemployment rate in the European Union. The youth unemployment rate reached an all-time high of 49.8 percent in 2013 and currently fluctuates around 30 percent.

 

However, Croatia is working to improve these conditions. For example, as a member of the European Union, it has committed itself to the Youth Guarantee Programme. Through this initiative, Croatia receives funding from the EU to build a support system for Croatian youths that would feature more opportunities for vocational education and apprenticeships in the public and private sectors. The goal of this program is to ensure that youth members receive a job offer within four months of registering as unemployed.

Croatia also is implementing the Strategy on Combating Poverty and Social Exclusion in Croatia (2014-2020), which aims to reduce poverty and social exclusion in Croatia through a regional approach. Through initiatives like these, the government hopes to address the causes of poverty in Croatia and lift itself into economic prosperity.

– Lauren McBride