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Poverty in Kyrgyzstan

Poverty in KrygyzstanA small, landlocked state in Central Asia, Kyrgyzstan was formerly part of the Soviet Republic with a volatile past and an uncertain future. While the country has had consistent economic growth since gaining independence in 1991, 22.4% of its population still live below the poverty line. Additionally, Kyrgyzstan struggles with internal ethnic conflict, unstable relations with neighboring countries, demographic trends in emigration and geographic weaknesses. This article will explore the many factors contributing to poverty in Kyrgyzstan, as well as the steps the country—and the world—are taking to solve it.

Geographic Disadvantage

Geography is an undeniable factor in determining the wealth and strength of a country. Unfortunately for Kyrgyzstan, geography has played a significant role in ensuring that the state is politically disconnected and economically restrained. Mountains, valleys and basins dominate Kyrgyzstan’s geography. Together, the Tian Shan and Pamir mountain ranges account for roughly 65% of the country’s land. Urban areas are located in the valleys separating the mountains, with agricultural production mainly in the Fergana Valley to the northeast.

Kyrgyzstan’s political borders are the result of Stalinist intervention that purposefully divided ethnic groups in order to create conflict. This political division, combined with mountains separating populations, created an unstable and disconnected region. Kyrgyzstan contains few navigable rivers and is geographically landlocked, forcing it to depend on other countries to transport goods to global markets. Furthermore, Kyrgyzstan’s geographical location is too close to Russia and China to warrant a significant Western investment. Kyrgyzstan can only overcome its geographic weaknesses with favorable trade deals and investment in transportation networks that connect the country to the outside world.

Economic Weakness

With a GDP of $8.5 billion and GDP per capita at $1,323, Kyrgyzstan’s economy lacks the natural resources and industrial diversity to thrive in the global economy. While GDP growth is consistently 4-5% annually, the country’s poverty rate has remained relatively stagnant since 2009. This stagnation is the result of the lack of job creation and wage growth in the country. Corruption and difficult business conditions have kept away investors, while the stronger Russian market exacerbates the trend of emigration.

The economy is dominated by mineral extraction, agriculture and animal domestication—sectors that are unlikely to grow in the coming years. Economic activity is so isolated in Kyrgyzstan that the Kumtor gold mine alone creates approximately 8% of the country’s GDP. However, there is hope for the economy in the tourism and hydroelectric power industries. With proper investment, Kyrgyzstan’s dams and mountain views could be the needed catalyst for economic diversification.

Political Instability and Corruption

Kyrgyzstan’s experience as a former member of the Soviet Republic has created a culture of political instability since the country achieved independence in 1991. Border wars over the Fergana Valley resulted in an atmosphere of suspicion in the region and led to the elections of nationalist strongmen in Kyrgyzstan. This social upheaval continued until 2010 when the nation adopted a parliamentary constitution with significant checks and balances. Even today, Kyrgyzstan is the only Central Asian state where the president is limited to a single term.

Despite progress in balancing branches of government, the new system was unable to calm the ethnic and regional tensions that had been simmering for decades. Additionally, corruption continues to harm Kyrgyzstan’s courts and business reputation due to the lack of accountability institutions. Businesses routinely pay off judicial officials and civil service personnel in order to earn tax abatement and political favors. The government has responded with reforms intended to improve Kyrgyzstan’s business environment but still lacks the ability to vet judicial appointments. With officials more interested in securing their own fortunes than the country’s well-being, it is clear that the political system perpetuates the cyclical poverty in Kyrgyzstan that plagues the country.

Demographic Trends

Understanding the demographics of a country can be essential in gauging future economic performance and societal progress. Kyrgyzstan has a population of approximately 6.5 million people, of which a majority are Kyrgyz, Uzbeks, Uighurs, Tajiks or Russian. While roughly three children are born to every Kyrgyz woman, the population growth rate remains around 1% due to significant emigration. The stronger Russian and Kazak markets, combined with a significant Russian minority ensures that this trend will continue into the next decade, curbing economic growth in the country. The urban and rural divide is also striking.

Only 35.6% of Kyrgyz peoples live in urban areas in comparison to the worldwide average of 55%. This statistic speaks to the weaknesses of a decentralized state lacking infrastructure investment. Additionally, the presence of minority groups from other Central Asian nations is the primary reason for the continuing tension in the region. Kyrgyzstan’s efforts at private industry reform have combatted the emigration trend to some extent. However, addressing Kyrgyzstan’s lack of centralization can only occur through infrastructure investment; a policy that requires significant capital in a mountainous nation.

Solutions

Despite the many dimensions of poverty in Kyrgyzstan, government reforms and international institutions alike have made significant progress in addressing this problem. The country has employed a multi-pronged approach to alleviating poverty in Kyrgyzstan and addressing shortcomings in the economy and government. Some of the policy proposals include reforming legal and regulatory institutions, developing the private sector, improving infrastructure and revamping social services. As many of these proposals are capital-intensive, Kyrgyzstan has turned to international financial institutions for funding. The World Bank and Asian Development Bank support important infrastructure projects in the country, including hydroelectric dams that power much of the region. The Asian Development Bank has been especially beneficial to Kyrgyzstan, with assistance reaching $2.13 billion on 192 projects.

While Kyrgyzstan has made progress in recent years, addressing poverty in Kyrgyzstan depends on whole scale reexaminations of the role of the private sector and courts in civil society. With support from the international community, targeted investment and governmental integrity, it is completely possible for Kyrgyzstan to overcome its many challenges.

– Matthew Compan
Photo: Flickr

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4 Countries Helped by the Asian Development Bank

asian development bankThe Asian Development Bank (ADB), which was established in 1966, attempts to alleviate poverty in Asia by funding numerous welfare projects in the region. Many Asian countries are members of ADB, which provides them with loans and monetary assistance, as well as providing general technical help with different projects. ADB aims to achieve “a prosperous, inclusive, resilient, and sustainable Asia and the Pacific.” Here are four countries that ADB has benefited positively.

4 Countries the Asian Development Bank Has Helped

  1. China: The People’s Republic of China is a country that has experienced uneven development in the past century. Major cities are urbanized, while rural areas remain in extreme poverty. ADB has funded and overseen numerous projects to attempt to lift these areas out of poverty and improve the standard of living in the country. One project in Yunnan, for example, pays and trains women to maintain around 5,000 kilometers of rural roads. This offers economic opportunities to rural women while facilitating more transportation between rural towns. Another project funded the purchase of 1,860 clean buses to combat China’s pollution problem.
  2. Cambodia: While Cambodia has undergone positive development in recent years, poverty still exists in the country, and many of its residents live in adverse conditions. In 2017, for example, 21% of the Cambodian population did not have access to clean water. The Asian Development Bank has encouraged sustainable development in Cambodia through many large-scale projects. In 2003, the bank allotted $15.6 million to Cambodia as part of a project to attract tourists and benefit local economies. More recently, ADB approved a loan of $250 million to support Cambodia’s economy through the COVID-19 pandemic.
  3. Thailand: In recent years, poverty has unfortunately increased in Thailand, with the poverty rate growing from 7.8% in 2015 to 9.8% in 2018. According to the World Bank, this has been due to several “economic and environmental challenges,” particularly because individual Thai households are highly susceptible to variable economic conditions. Projects by ADB attempt to combat this—one 2017 program introduced around 500 farmers to the organic farming market. This connected them to a greater, more profitable market in order to attain a self-sufficient income. In 2012, a solar power plant funded by ADB was also completed, which generated enough power to provide clean electricity to 70,000 households. The plant also helps to keep greenhouse gases from being released into the atmosphere.
  4. Sri Lanka: Sri Lanka is a relatively small country, with a population of around 22 million. In 2016, 4.1% of the population was below the national poverty line. ADB has mainly funded rural development projects in Sri Lanka but has also focused on social justice and creating better living conditions for Sri Lankan residents. From 2000 to 2018, ADB helped connect more than 200,000 households to electricity and built or upgraded just under 4,000 kilometers of roads. The Asian Development Bank has also funded support for around one million residents affected by the Sri Lankan Civil War, which lasted from 1983 to 2009.

Since its conception, ADB has made incredible progress in fighting poverty and assisting development in Asia. In 2019 alone, ADB committed $21.64 billion in loans, grants and other investments to various countries and provided $237 million in technical assistance. Still, much poverty remains to be fought—while Asian countries have experienced massive development in the 21st century, many rural areas have been left behind. Poverty remains a pervasive issue in Asia. The Asian Development Bank has changed the lives of many Asian residents, but much remains to be done.

– Maggie Sun
Photo: Flickr

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10 Facts About Sanitation in Kyrgyzstan

Sanitation in Kyrgyzstan
With a population of just over six million people, Kyrgyzstan is a small, mostly rural country in Central Asia, nestled between the fertile Fergana valley and some of the highest mountain ranges in the world. Today, much of Kyrgyzstan’s population does not have access to proper sanitation facilities. However, with a rise in international support, Kyrgyzstan is making hopeful strides towards better health and sanitation. Here are 10 facts about sanitation in Kyrgyzstan. 

10 Facts About Sanitation in Kyrgyzstan

  1. Geographic Issues: Dotted with hundreds of mountainous peaks, Kyrgyzstan’s geography makes it one of the most difficult countries to navigate in the world. With 65% of the population living in rural areas and steep terrain making travel between remote communities difficult, providing comprehensive access to sanitation in Kyrgyzstan has been a persistent challenge.
  2. Limited Sanitation Facilities: Kyrgyzstan has a large number of rivers running throughout the country, many originating from alpine glaciers. These include many tributaries of the Syr Darya, one of Central Asia’s longest rivers. Despite the presence of water resources, Kyrgyzstan lacks facilities that allow for national access to water and ensure water quality. As a result, many people in rural areas use irrigation water for sanitation and household purposes.
  3. Sanitation in Schools: According to UNICEF, more than 36% of schools in Kyrgyzstan have no water supply and many have not been renovated since the Soviet era. This lack of adequate sanitation facilities, along with an absence of menstrual hygiene supplies, has resulted in many female students dropping out of school.
  4. Waterborne Diseases: An estimated 88% of cases of infectious diseases in Kyrgyzstan are due to poor water quality. With limited wastewater treatment and a lack of supervision over water quality, waterborne diseases are highly prevalent in Kyrgyzstan. As of 2017, rules for water quality at supply facilities were only recommended and not actively enforced.
  5. Aging Water Facilities and Systems: A significant issue facing sanitation facilities in Kyrgyzstan is the deteriorating conditions of existing water systems. According to the WHO, 40% of water pipes are out of operation because they exceeded their terms of use. Now, more than 4,000 standpipes remain out of service. Although the Kyrgyz Department for Development of Water Supply and Sanitation bears the responsibility of repairing these pipes, the department has not yet implemented a plan.
  6. Urban and Rural Disparities: Access to sanitation in Kyrgyzstan is heavily dependent on economic conditions and location. In urban areas, wastewater management, water supply and water quality are all higher quality than in rural regions. According to the U.N., 42% of the capital has access to piped sewage, compared to only 3% of the predominantly rural Batken region.
  7. World Bank Efforts: Founded in 2016 by the World Bank, the Sustainable Rural Water Supply and Sanitation Development Project has invested more than $36 million in providing water to rural communities in Kyrgyzstan. The project has already provided water access to more than 250 remote villages and is expected to benefit 200,000 people.
  8. WASH: Partnering with the Kyrgyz government, UNICEF’s Water, Sanitation and Hygiene (WASH) Program has supported the construction of sanitation facilities in schools and hospitals. The program also involves awareness campaigns to educate the public on proper hygiene practices. According to UNICEF, WASH has been implemented in more than 100 schools in Kyrgyzstan. From 2006 to 2014, the proportion of the population using appropriately treated water increased from 35% to more than 77%.
  9. Asian Development Bank Funding: The Asian Development Bank (ADB) has made significant contributions toward addressing sanitation in the rural Naryn region. These contributions include a $27.4 million financial package that aims to provide water to 64,000 people in the province. ADB’s program plans to increase access to safe water to 90% and sanitation facilities to 70% by the year 2026. 
  10. Improved Water Facilities: Funded by the government of Finland and created by U.N. Women, the Livelihoods through Participation and Equal Access Program collaborates with local governments, schools, and water associations to establish improved water facilities across the country. By 2018, the program had increased access to irrigation water for over 20,000 people in rural Kyrgyzstan. It had also helped conduct advocacy campaigns to 30,000 people on the efficient use of natural resources.

While sanitation in Kyrgyzstan remains one of the country’s most pressing issues, it is clear that progress is being made. With continued support, Kyrgyzstan may soon overcome one of its most critical issues, enabling people across the nation to transform their lives for the better.

– Shayaan Subzwari
Photo: Flickr

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Desalination in Micronesia Could Alleviate Water Scarcity

Desalination in Micronesia Could Alleviate Water ScarcityMicronesia, a cluster of hundreds of islands nestled in the Southwest Pacific, is a region with unique obstacles to development. Nationwide efforts to fight poverty are difficult to execute because of the disconnected nature of the islands. One of the greatest barriers for Micronesian communities in the fight against poverty is access to safe water. As of 2015, around 15% of the rural population lacked access to basic drinking-water sources. Water supply in the South Pacific is particularly susceptible to the climate, with certain weather patterns making the water too brackish, or is diseased with cholera, typhoid and other deadly water-borne illnesses.

Hardships and the Importance of a Stable Water Supply

In 2016, the region experienced one of the worst droughts in Micronesian history. An emergency response coordinator at the International Organization for Migration explained that the drought’s impacts went beyond just providing drinking water. In early 2020, some preparatory schools in Weno were forced to close because wells were drying up.

Furthermore, because agriculture employs almost half of the nation’s labor force and produces 60% of food supply, groundwater supply is critical. In the past, severe droughts have led local farms, which are the backbone of the economy, to be shut down.

A Promising Solution

Since problems of national drought and water insecurity in the country continue to resurface, many understand that there must be a restructuring of the Micronesian water infrastructure. Fortunately, the islands’ seafront location is leading many to suggest the potential of desalination in Micronesia. This process makes ocean water drinkable and has the potential to meet Micronesia’s needs. The Marshall Islands, one of the five states in Micronesia, recently completed a desalination project that purifies 1,600 cubic meters of seawater a day. Partially funded by the Asian Development Bank, the project has been revolutionary for the Marshall Islands’ water independence. Beyond the South Pacific, nations around the world have caught on to the capabilities of desalination, from Saudi Arabia and Oman to China and India. Plants operate in more than 100 countries, and many areas, like Dubai, have been able to shift to almost 100% desalination.

The Role of Renewable of Energy

Not only does desalination in Micronesia give islands the autonomy to have a stable water supply, but the desalination plants typically encourage the growth of renewable energy, like solar panels. This is partially a result of the fact that most modern desalination plants are powered through solar energy. When government funding is available to introduce solar energy, a presence for renewables is better established in the economy and further investment is more likely. The new plants in the Marshall Islands are solar-powered and have catalyzed the development of solar street lights estimated to significantly reduce energy consumption. These plants also provide reliable drinking water to 3000 Micronesians.

 

While poverty and child mortality rates have steadily dropped in the region in the last decades, Micronesia cannot continue to improve on this progress without access to a stable water supply. Fortunately, the development of infrastructure to encourage desalination in Micronesia alongside current plants in the Marshall Islands and Vanuatu is a groundbreaking step in this effort for nationwide water security.

– Jack Berexa
Photo: Flickr

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International Efforts to Reduce Poverty in Laos

Poverty in Laos
The Lao People’s Democratic Republic, or Laos, is a landlocked country in Southeast Asia. One of the fastest-growing economies in the world, the country has halved its poverty rate in the past 20 years. This is an impressive feat for the import-heavy country given that less than 5% of its land is suitable for agriculture. Poverty in Laos, however, remains a formidable issue. Laos faces a significant wealth gap between its capital Vientiane and poorer rural areas. Foreign aid and international efforts strive to reduce poverty in Laos.

The World Bank and the Poverty Reduction Fund

Created in 2002, the Poverty Reduction Fund (PRF) linked Laos to the international community through the World Bank, aiming to reduce poverty in Laos. The goals of the PRF have progressed over time, reducing poverty at a grassroots level and helping the Laotian poor achieve self-sustainability.

PRF has positively impacted more than 10,000 Laotian women and their families – self-help groups in different villages provide microloans, monthly household income has increased exponentially over the years and nutrition centers, roads and schools are constantly improving and serving Laotian villagers.

In December 2019, the World Bank approved additional funding of $22.5 million as a soft loan to Laos. This loan supports the Laotian government’s National Nutrition Strategy, which seeks to improve rural conditions by developing agricultural infrastructure.

The Asian Development Bank

The Asian Development Bank (ADB) grants loans, technical assistance and equity investments to promote development in Asian countries. The ADB has assisted poverty-reduction operations in Laos since 1968 and still finances assistance to the country. As of 2019, it has provided Laos with a total of $2.91 billion.

The ADB generally focuses on sustainable development in Laos but also funds education to achieve social and economic development. Because of its early involvement in Laos, the ADB’s efforts have yielded impressive results, having connected more than 20,000 households to electricity and water and providing education facilities to more than 100,000 Laotian students.

The United Nations Development Program’s Brand Laos Initiative

The United Nations Development Program (UNDP) fights global poverty, seeking sustainable development and global equality. The UNDP has several ongoing projects in Laos supporting gender parity and government transparency. One notable initiative is a project it calls Brand Laos – a mission fighting for a unique Laotian brand and niche.

Brand Laos researches Laotian economic niches in order to create a unique marketable perspective for the country, finding viable products for farmers, producers and service providers. This economically benefits Laos, raising income for agricultural workers and producers. A Laotian niche could reduce poverty while bringing spurring development.

In particular, these types of projects seek high-quality products for international markets where consumers pay extra for ethically produced foreign products. Brand Laos has looked into products and services such as tea, silk-based clothing and ecotourism.

Conditions in rural Laotian households have improved drastically in recent decades, thanks to these international efforts. The Laotian national poverty rate was 46% in 1992 and fell to 23% in 2015. Additionally, households have greater access to electricity, water and even extraneous symbols of development like smartphones. With continued work, the poverty rate in Laos should continue to go down.

– Maggie Sun
Photo: Flickr

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How the COVID-19 Crisis Is Impacting Global Poverty 

Covid-19 Crisis
The COVID-19 crisis or coronavirus pandemic continues to grow as the number of global cases rises. With U.S. President Donald Trump approving a fiscal stimulus package of $2.2 trillion, the dire economic ramifications of the COVID-19 crisis grow more significant. Yet, there are disproportionate economic impacts on the world’s poor that highlight the implications of COVID-19 on global poverty.

What the COVID-19 Crisis Means for Global Poverty

Unfortunately, the aftershocks of COVID-19 will destabilize the world economy even further during the beginning of 2020 and beyond. The Asian Development Bank already estimates that the collective global impact of the COVID-19 crisis will be between $77 billion to nearly $347 billion in economic output costs worldwide.

The World Economic Forum calls the COVID-19 crisis a “pandemic in the age of inequality” as it especially impacts countries lacking universal health care or adequate health care systems. Many workers have lost work and are cannot even take paid sick leave of any kind.

“[I] fear hunger will kill us before coronavirus,’’ says Momanned Sabir, a young street entrepreneur in Delhi who owns a yogurt-based drink shop. Her words come in response to the three-week lockdown that Indian Prime Minister Narendra Modi imposed. Poverty and unemployment impact many daily wage earners and workers in informal and unorganized sectors. This is particularly evident in nationwide lockdowns from India, China, the Philippines, the Middle East and European countries.

Among the 50 countries under the United Nations’ Least-Developed Country Status (LDC), more than 900 million remain vulnerable to the risk of COVID-19. This is due to the poor health care infrastructure and resources to support a large-scale health crisis. Most importantly, many countries continue to be in short supply of testing kits.

U.N. Secretary-General Antonio Guterres has appealed for $2 billion to help the world’s poor who have been impacted by COVID-19. World Health Organization director Tedros Adhanom Ghebreyesus implores G20 nations to offer aid and support low and middle-income countries.

Future Course of Action

Indian Finance Minister Nirmala Sitharamn has proposed an economic stimulus package for financial relief to women and vulnerable groups. For example, there are welfare systems that distribute free gas cylinders, wheat and rice for up to three months. For women in India’s Jan Dhan banking system, the government offers compensation of 500 rupees for the next three months. In addition, India has issued a bailout package of $22 billion to help cushion the economic impacts of its lockdown, especially as several daily wage and unorganized workers have lost out on work and pay during this period.

The number of testing kits will also increase soon due to the invention of a new working test kit by Dr. Minal Dhakave Bhosale. India will thus rely less on more expensive imported kits. There will be a distribution of more than 100,000 kits every week from now on.

Moreover, the International Monetary Fund (IMF) has provided $50 billion to control the COVID-19 crisis in low-income countries that seek support through its emergency financing facilities. Along with the IMF, the World Bank is also providing debt relief to poor countries through loans and grants. The group is also working with more than 35 countries to address the economic implications of the pandemic. The World Bank also plans to spend a whopping $160 billion over the next 15 months and is already securing fixed amounts for wide-scale mitigation efforts and projects.

Oxfam International is working on ways to use its knowledge and expertise in public health to better address the ongoing crisis, especially after its work during other outbreaks like Ebola and the Zika virus. Oxfam is also assisting in the delivery of sanitation services and offering accurate information to people.

Looking to the Future

To help those who have lost jobs due to COVID-19, the Asian Development Bank recommends focusing on strengthening social assistance. It also urges attention to upgrading labor market policies and programs.

The COVID-19 crisis could also impact the way the world addresses global poverty going forward, especially given the potential global impacts. It will take long-term development strategies to get low-income workers and poorer communities back on their feet.

– Shivani Ekkanath
Photo: Flickr
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10 Facts About Sanitation in Cambodia

sanitation in Cambodia
Despite experiencing robust economic growth in recent years, GDP per capita in Cambodia remains low. While urban Cambodians are now able to enjoy increased sanitation services and access to clean water, the majority of the population resides in rural areas where the living conditions are sub-standard. Below are the top 10 facts about sanitation in Cambodia.

10 Facts About Sanitation in Cambodia

  1. Access to Clean Water and Sanitation: Approximately 50 percent of the population has access to improved sanitation and basic water supply, but only a quarter has safely managed water. More than 2 million people, or about 13 percent of the population, are still living without clean water and 6 million do not have access to safe sanitation.
  2. Increased Access to Improved Sanitation: The total number of people with access to improved facilities increased from 3 percent in 1990 to 42 percent in 2015. Cambodia has eradicated open defecation in urban areas and 88 percent of urban Cambodians have access to improved facilities. The progress is even remarkable among the poorest urban households with 82 percent now having access to improved sanitation, up from 0 percent in 1990.
  3. Open Defecation: Cambodia has the highest rate of open defecation in the region with 80 percent of the poorest rural Cambodians defecating in the open. This unsafe practice contaminates the land and water sources, exposing the population to dangerous waterborne infectious diseases and causing preventable deaths. Cambodia is working towards its national target of eliminating open defecation by 2025.
  4. Disparities Between Urban and Rural Areas: Forty percent of Cambodians in rural areas do not have access to hand-washing facilities compared to only 12 percent of the urban population. Almost 90 percent of the urban population has access to improved latrines while only 40 percent of the people living in rural areas do.
  5. Economic Costs: Lack of sanitation costs Cambodia up to $448 million annually, which is equivalent to 7.2 percent of the nation’s GDP. Health-related losses are some of the largest contributors to this economic impact, which account for 42 percent of the impact, or $187 million. Costs of accessing cleaner water, welfare and time losses and tourism loss due to poor sanitation also contribute to the high economic impact.
  6. Asian Development Bank (ADB): To support financing Cambodia’s goal of providing universal access to improved water supply and sanitation services by 2025, the ADB has approved $49 million in funding. Since 2005, more than 1 million people in Tonle Sap Lake have received benefits from ADB-supported water supply and sanitation services projects. The new project will benefit more than 400,000 people in at least 400 Cambodian villages.
  7. Plan International Cambodia: Since 2006, the program by Plan International has helped to promote the adoption of clean water consumption, hygiene and sanitation practice in hundreds of Cambodian villages. Using the community-led total sanitation approach, the program has helped 750 villages achieve the open defecation free status, as well as construct and install 130 wells, 65 water purifying systems and 700 sanitation facilities at schools.
  8. Latrine Access: Cambodia is making steady progress in increasing latrine access in the population, doubling the coverage rate in rural households from 23 to 46 percent in five years. Production costs have plunged, making latrines accessible and affordable to an increasing proportion of the population. The director of the Department of Rural Health Care estimates that 80 percent of Cambodians can now afford latrines.
  9. Cambodia Rural Sanitation: iDE, or previously International Development Enterprises, has announced a $10 million Development Impact Bond (DIB) to support Cambodia’s sanitation initiatives in partnership with USAID and the Stone Family Foundation. It is the world’s first DIB developed for the WASH sector, aiming to eradicate open defecation in 1,600 villages in six provinces by 2023. The impact bond will support iDE’s Sanitation Marketing Scale-up Program, which delivers affordable latrines to 10s of thousands of households annually and has successfully increased sanitation coverage from 29 percent in 2009 to 67 percent in 2018.
  10. Sanitation Marketing: Traditional programs focusing on education may be successful in raising awareness, but do not always translate to purchases of hygienic toilets. Sanitation Marketing is a market-based approach that aims to increase both the capacity to supply and the demand for sanitation by making owning a toilet more appealing and desirable for families. iDE and WaterSHED implemented this new approach and focused on the rural Cambodian areas, and both have been successful in enabling the sale of more than 260,000 toilets and increasing improved sanitation coverage in Cambodia’s rural communities considerably.

These 10 facts about sanitation in Cambodia give a brief overview of the challenges and progress the country is making regarding the WASH sector. Cambodia is making improving the quality of water and sanitation a priority, which not only ensures the basic rights of people and protects human dignity but also indirectly and directly benefits Cambodia’s socio-economic development. Despite facing many challenges, with support from different international and local NGOs, the government of Cambodia has committed itself to the achievement of its goal of providing universal access to clean water and sanitation services by 2025.

– Minh-Ha La
Photo: Flickr

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ADB Helps Pakistan to Fight Poverty

ADB Helps Pakistan to Fight Poverty

The Asian Development Bank (ADB) helps Pakistan to fight poverty by pledging  $10 billion to Pakistan over the next 5 years for the purpose of infrastructure development, with the goal of improving important economic sectors that could revitalize regional trade. Two central areas of investment for the ADB will be water resource development and transportation infrastructure. Transportation infrastructure is an especially important focus area, as it undergirds the possibility of developing trade in other sectors of Pakistan’s economy. Water resource development will be crucial in continuing to sustain the agriculture sector and in ensuring that citizens have access to water. Here are some ways ADB helps Pakistan to fight poverty by addressing some major issues.

Trade and Transportation

While trade and poverty may appear to be separate, the economic growth prospects offered by expanding trade programs often spill over to effect poverty reduction. The positive gains in GDP growth result in increased capital coming into a country, which creates more opportunities for employment and access to markets. Since 2001, consistent yearly GDP growth in Pakistan, ranging from 1.7 percent to 7.5 percent has come alongside a 24.7 percent reduction in the number of Pakistanis living in extreme (less than $1.90 a day) poverty.

However, the poor transit system could have negative effects on the future of economic growth in Pakistan. Most of the nation’s railway system is over 100 years old and was built during the British colonial period. This has severely hampered the possibility of ramping up trade and industrial production, as only 4 percent of commerce can be shipped via rail. This has had a while GDP growth has been consistent, the share of growth caused by trade has declined, as the service industry, at 58.6 percent of GDP and agriculture sector at 24 percent both outpace the contributions of industrial production, which has declined from 22 percent of GDP to 19.3 percent. Moreover, the ADB estimates that 2 percent of GDP is lost annually due to poor transportation infrastructure.

In response to this, the ADB has announced plans to invest in providing more locomotives, increasing the overall prospects for shipping capabilities by rail, and has also invested in updating railway lines, as well as improving north-south highways for travel via motor vehicles.

Water Resource Development

Water resource development is another way ADB helps Pakistan fight poverty. This is not to suggest that agriculture is unimportant, as in some cases, agricultural development is integral to the maintenance of local economic growth, offering a means of mitigating the worst impacts of poverty. This is especially true of Balochistan, a province that faces severe water scarcity, impacting both the living standards of the population and the local economy. Agricultural production requires massive levels of water to operate successfully, and with 60 percent of the population employed in agriculture, the impact of water scarcity on poverty is compounded by pressing economic concerns.

As a result of water scarcity in Quetta, the provincial headquarters of Balochistan, many tube-wells were installed in order to redirect water from rural areas to provide water to the urban areas. This program has produced a massive strain on the population of Balochistan, eliminating access for water for both drinking and for use in agricultural production, with poor water resource management producing a scenario in which one portion of the population is only able to access the water by depriving another.

However, the ADB is seeking to combat this water scarcity by protecting watersheds and building 276 kilometers of new irrigation channels, to support agricultural production. Watersheds will prevent soil erosion, and increase water storage capabilities in the region, while irrigation channels will assist in combating the scarcity brought on by tube-wells. Beyond its use for irrigation, these programs will also be important for developing methods of helping increase access to water in the region, which some estimate could have a profound impact on increasing women’s access to water.

Conclusion

Water scarcity and poor transportation infrastructure have hindered effective economic development in Pakistan, limiting the prospects for sustainable economic growth and poverty reduction. The influx of capital offered by expanding networks for regional trade promises to offer new avenues for employment and sustainable income for Pakistanis living in poverty. Water resource management will provide new avenues for managing agricultural development, ensuring stable irrigation routes and providing overall water security.

– Alexander Sherman
Photo: Flickr

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Foreign Assistance Increasing Trade in Bangladesh

Trade in Bangladesh

Increased global integration has happened in Bangladesh as a result of domestic policy changes and the ability to take advantage of emerging opportunities in the international market. The increasing openness of the country’s economy reflects this. With the trend of Bangladesh devoting foreign aid towards project aid, foreign assistance has been playing a key role in increasing trade in Bangladesh.

Aid for Trade in Bangladesh by the World Trade Organization

Trade liberalization is not enough as many developing countries are still unable to take full advantage of it due to a lack of proper infrastructure and the relation between aid and trade flows. As a result, the concept of Aid for Trade (AfT) emerged in 2005 as an effort to assist developing countries to overcome supply-side constraints and improve trade capacity. This initiative also included economic infrastructure and productive capacity-building.

Aid for Trade in Bangladesh has helped strengthen its trade-related supply-side capacities through technical and financial support from various bilateral and multilateral development partners. Bangladesh had received a significant amount of trade-related assistance even before the institutionalization of AfT in 2005.

Over the years, AfT disbursements in Bangladesh have increased from $376.2 million in 2006-2008 to $910.1 million in 2015. As of 2015, the top AfT disbursement donors were Japan with $359.5 million, IDA with $292.4 million, AsDB Special Funds with $88.8 million, the United States with $50.6 million and Korea with $35.2 million. Most of these disbursements went to energy generation and supply, followed by transportation and storage, and agriculture, forestry and fishing.

By 2015, exports of goods increased by 183 percent and commercial services increased by 81 percent. Import of goods increased by 164 percent and commercial services increased by 220 percent, reflecting the increase in trade in Bangladesh.

Bangladesh Regional Connectivity Project 1 by World Bank

On December 7, 2017, the World Bank signed a $150 million agreement with Bangladesh to improve trade-related infrastructure, systems and procedures so that Bangladesh could increase trade regionally with India, Bhutan and Nepal.

The Bangladesh Regional Connectivity Project 1 will develop and improve four land ports – Bhomra, Sheola, Ramgarh and Benapole, which are key ports for regional trade, especially with India. The modernization of these ports will not only increase trade in Bangladesh and its freight volumes but also lessen truck clearance times at border posts. For instance, the expectation is that clearance time will decrease by 83 percent in the Bhomra port.

According to Qimiao Fan, World Bank Country Director for Bangladesh, Bhutan and Nepal, “By addressing the key barriers to trade, especially transport and clearance delays, Bangladesh can become more competitive regionally and globally, and reach more emerging and dynamic markets with diversified product mix, including higher-value garments.”

The project will also develop a National Single Window, a single electronic gateway, through which traders can submit all import, export and transit information needed by the Customs and other regulatory organizations. Not only will it reduce transaction time and costs but also increase transparency in international trade procedures.

The project will also initiate skills development programs to include more women in formal trade networks and global value chains, while also developing the necessary infrastructure, logistics and transport services for women.

Trade Finance Program (TFP) by Asian Development Bank

ADB’s TFP provides guarantees and loans to banks in order to support trade and fill the gaps in trade financing. The program works with over 200 banks to provide financial support to companies so they can actively participate in exports and imports in the challenging markets of Asia. The program supports transactions of commodities and capital goods to medical supplies and consumer goods.

This program has been working with Bangladesh since 2004 and has been involved with 13 local partner banks. It has conducted around 1,983 transactions in total, supporting trade in Bangladesh worth $3.1 billion and benefiting 966 small and medium-sized enterprises in various sectors ranging from food and agricultural goods to commodities and industrial machinery, capital goods and more.

Dutch-Bangla Bank Ltd. (DBBL) in Bangladesh partnered with the bank of TFP in 2009 and signed an agreement on February 22, 2018, to receive $10 million in loans annually from the program to support and increase trade in Bangladesh.

Multilateral and bilateral trade preferences towards Least Developed Countries have played an important role in increasing trade in Bangladesh, specifically the growth of exports, and as a result, the contribution of export-oriented sectors towards the country’s GDP, employment and investment. With diversified programs from development partners, the expectation is that the quality, volume and transparency of trade will increase for Bangladesh.

– Farihah Tasneem
Photo: Flickr

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3 Efforts to Improve Water Management in Armenia

Water management in Armenia

With 25.7 percent of the population living below the poverty line, the people of Armenia consider water a luxury. Armenians face daily water shortages and unclean water supply in their homes. Despite this, several groups are working together to improve water management in Armenia. Maintaining a stable supply of water is an important step in lowering poverty and improving the lives of citizens.

3 Efforts to Improve Water Management in Armenia

  1. Relief to Yerevan: The World Bank sponsored a $50 million project to make water more accessible to Armenians living in the capital city, Yerevan. Before the intervention, families would have access to water in their homes for approximately six hours per day, and the water was usually unclean. Now, 332,000 families in the capital have access to water for 21 hours per day, and thanks to nine new chlorination stations, the water is cleaner and safer. The World Bank also recognized the need to monitor the water supply to prevent waste, so they introduced a software program that oversees the entire network of pipes and water mains. The program makes it possible to pinpoint areas within the network that need renovation or attention to maintain a stable supply of water. This program could help thousands of Armenians if it were implemented in other cities, but so far, it has brought a sense of security and relief to Yerevan.
  2. Wastewater Treatment Methods: Before 2010, the wastewater treatment system allowed unsanitary water to contaminate agricultural lands, causing a jeopardized food supply and an increased risk of disease. In the village of Parakar, Global Water Partnership’s Armenia branch stepped in to reform the wastewater treatment methods. They chose a cost-effective technology that treats domestic wastewater so that it can be later used for irrigation purposes and vice versa. This allows water to be recycled and reused, promoting a message of sustainability. The treatment program also focused on public awareness of the new treatment technology, involving the community in the process which facilitated the plan’s success.
  3. Water Within Reach: Armenians used to have to travel very far to get potable water. Some families were forced to drive over an hour to get to the public tap, spending a large portion of their income on the expenses associated with this travel. The Asian Development Bank launched a project that aimed to reduce the cost of obtaining water by making it clean and available within people’s own homes, benefitting more than 600,000 people across the country. Having access to water in the home for at least 17 hours per day now costs $12 per month – significantly less than what it previously cost to make the drive to the public tap. This initiative marginally contributes to the decrease in poverty among Armenian families, and it improves the quality of their lives significantly.

The World Bank, the Global Water Partnership and the Asian Development Bank have changed lives because of their work to improve water management in Armenia. This is a small but mighty step towards decreasing poverty in Armenia.

– Katherine Desrosiers
Photo: Flickr

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