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The IDPoor Card and Poverty in Cambodia

IDPoor Card
Poverty could double in Cambodia as a result of the COVID-19 pandemic, pulling an estimated 17.6% of the population below the poverty line. Faced with a shrinking economy, Cambodia teamed up with the United Nations Development Programme (UNDP) and UNICEF to issue IDPoor cards, which give struggling families 176,000 riels, or about $43 per month. With an IDPoor card, a family can buy dry food ingredients and products with long shelf lives to ration throughout the month.

The IDPoor card is part of the “Cash Transfer Programme for Poor and Vulnerable Households,” a government initiative designed to help strengthen social protection in Cambodia in the face of COVID-19.  Based on the country-wide poverty identification system launched in 2007, the cash transfer programme is a game-changer for Cambodians across the region.

Inside the Cash Transfer Programme for Poor and Vulnerable Households

Each household has an entitlement to $20 or $30 monthly. Families with members of vulnerable groups–such as individuals living with disabilities or HIV–are eligible for additional monetary support.

A partnership between the UNDP, Australia and the Cambodian Ministry of Planning made the cash transfer programme possible. With 1,700 tablets and the necessary software supplied by the Australian government and the UNDP, local officials interviewed and registered families who had fallen into poverty during the pandemic. In total, nearly 700,000 people in the database received funds in a cashless form, either through their phone or a card.

The Groundwork and The Future

The U.N. worked swiftly alongside the Cambodian government, developing the IDPoor cards just three months after the COVID-19 pandemic hit the country. The groundwork for such an agile response took the form of a 2015 pilot program that supported vulnerable mothers and children before the pandemic. The onset of COVID-19 expanded the program to include low-income families across the region. UNICEF Chief of Social Policy, Erna Ribar, noted that the expansion of the 2015 pilot occurred in hopes of “[laying] the foundations for Cambodia to develop greater resilience to future economic shocks, ultimately paving the way towards a more equal society.” As the program came to fruition, the money transfer service extended its reach to even more remote populations, some of whom were handling money electronically for the first time.

In addition to the IDPoor Card, the U.N. continues to support the Cambodian government by providing medical equipment and technical support. The U.N. has also helped the country battle the pandemic by raising awareness about COVID-19.

The COVID-19 pandemic is among the greatest challenges in the modern world, and Cambodia believes that it should deal with it swiftly. Thus far, the country’s success in its money transferring service mirrors its success in controlling community spread. As Cambodians across the region continue to weather the economic consequences of COVID-19, the IDPoor card scheme remains a signal of hope.

– Jai Phillips
Photo: Flickr

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Australia’s Foreign Aid Initiatives Amid COVID-19

Australia's Foreign Aid Initiatives Amid the COVID-19 PandemicAmid the COVID-19 pandemic, Australia continues its foreign aid efforts, especially with investments in sustainability and infrastructure. This demonstrates Australia’s deep commitment to altruistic sustainable solutions. The total Australian development assistance was still four billion AUD (Australian dollar) in the 2019-2020 year, even though the nation is in the depths of its first recession in 29 years and is affected by the global pandemic. This four billion AUD makes up 0.21% of Australia’s total budget as seen in recent years, highlighting foreign aid as a prerogative for Australia despite economic shortcomings, including budget cuts and a global pandemic.

The Pacific

Australia’s foreign aid used $1.4 billion to finance developmental assistance in the Pacific. There are significant infrastructure needs in the region, so developmental assistance includes infrastructure. The Australian Infrastructure Financing Facility in the Pacific became operational on July 1, 2020. This funding supports efforts such as roads, buildings and power. Australia’s foreign aid works with governments and institutions on education and health programs in the region. This was done in recognition of the notable infrastructure needs in the region and the important role infrastructure plays in sanctioning growth. This demonstrates the depth of Australia’s commitment to the growth and development of the Pacific region.

The Australian Infrastructure Financing Facility for the Pacific aims to transform Australia’s international assistance and be a pillar of sustainable, principles-backed foundational investments in the Pacific and the nation of Timor-Leste. It permits Australia to work directly with partner governments, and also the private sector, to manage essential infrastructure gaps while unsustainable debt is avoided. This highlights Australia’s commitment to sustainability.

Australia’s foreign aid budget poured $500 million into financing infrastructure in the Pacific since 2017. The amount of $450 million went to humanitarian and protracted crises, which saves lives, alleviates suffering and strengthens human dignity.

The Coral Sea Cable System

From 2017-2020, the foreign aid budget spent up to $200 million on improving access to the internet, dubbed the “Coral Sea Cable System”, in the Solomon Islands and Papua New Guinea. This has many beneficial aspects, such as improved access to resources for rural populations.

In 2019-2020, Australia’s foreign aid budget also spent $145 million contributing to strong, inclusive and sustainable economic growth in Indonesia. Australia’s aid to Indonesia is important because about 26.42 million Indonesians live in poverty, and roughly 5.5 to 8 million Indonesians are estimated to have fallen into poverty due to COVID-19. According to the World Bank’s Human Capital Index, the next generation of Indonesian citizens would be 54% as productive as they could have been if they had a complete education or full health. Therefore, Australia’s foreign aid is very important at this time.

Labor mobility describes how easy it is to move from one occupation to another. Countries like Papua New Guinea, Solomon Islands and Vanuatu face challenges such as a large percentage of their population living in remote regions. Thus, these populations have low labor mobility. Expanding labor mobility is necessary for the future of these regions.

Conclusion

Despite being in the middle of a recession and amid a global pandemic, Australia was able to give four billion AUD, or 0.21% of its total budget, in developmental assistance toward the Pacific region, especially investing in sustainability and infrastructure. The Australian Infrastructure Financing Facility in the Pacific aims to be sustainable, functional investments by allowing Australia to work directly with partner governments to manage infrastructure gaps while avoiding unsustainable debt. Since 2017, Australia has invested $500 million into infrastructure in the Pacific.

– Madi Drayna
Photo: Flickr

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10 Facts About COVID-19 in Impoverished Nations

10 Facts About COVID-19 in Impoverished NationsThe COVID-19 pandemic is affecting countries worldwide, but it has created an additional burden for impoverished nations. The novel coronavirus is creating new concerns for vulnerable communities and is making current issues much worse. Here are 10 facts about COVID-19 in impoverished nations.

10 Facts About COVID-19 in Impoverished Nations

  1. The global poverty rate is projected to increase due to COVID-19. Globally, 71 million people are going to be forced into extreme poverty because of the effects of the novel coronavirus. This is a 0.59% increase in extreme global poverty and the first increase since 1998.
  2. Only 0.01% of people in low-income nations have been tested for COVID-19. In contrast, high-income countries have a test rate of 5.2% and upper-middle-income countries at 2.2%. Due to the lack of healthcare funding and infrastructure, low-income nations cannot meet the high demand for testing. With little access to testing, people in lower-income nations are at a much higher risk of complications with COVID-19 going undetected.
  3. More people in low-income nations are experiencing an income decrease than high-income nations. According to a poll by BBC World Service, 69% of people in poor countries received a pay decrease while 45% of people in high-income countries reported a pay decrease. More specifically, 91% of people in Kenya, 81% in Thailand, 80% in Nigeria, 77% in South Africa, 76% in Indonesia and 74% in Vietnam reported negative financial effects due to COVID-19.
  4. Developing countries may not get the number of vaccines needed to vaccinate the population. The United States, Japan and the European Union pre-purchased a minimum of 3.7 billion COVID-19 vaccines. Developing nations do not have the funds to purchase these vaccines. However, with $5.4 billion, impoverished nations will have sufficient vaccines for their people. The international community has only given $1 billion to this cause, meaning only 10% of people in low-income nations will get a COVID-19 vaccine.
  5. The number of food-insecure people will double this year because of COVID-19. This means 265 million more people are going to have food insecurity by the end of this year because of the novel coronavirus.
  6. Millions of children do not have access to education due to COVID-19. Half of the students in sub-Saharan Africa have not had access to education since the beginning of the COVID-19 pandemic. Additionally, about 1% of students in the most impoverished countries have access to the internet for remote learning. As a result, the poverty cycle will continue in developing nations because children do not have access to education.
  7. COVID-19 is causing more conflicts in developing countries. Many conflicts have arisen in developing countries. Riots over food shortages, extremists using COVID-19 to gain control and violent protests against governments are just some conflicts happening because of COVID-19.
  8. Low-income nations do not have enough supplies to prevent the spread of COVID-19. Impoverished communities lack masks, hospital beds, ventilators and other necessary supplies to treat and prevent COVID-19. Lack of healthcare funding causes low-income nations to not have enough hospital beds. Also, the high demand in high-income nations causes masks, testing kits and other supplies to be sent there first, thus leaving developing nations behind.
  9. Death tolls for COVID-19 in developing nations may be much higher than reported. The vast amount of people who live in remote areas in developing countries causes a lack of reported deaths. Hospitals are few in low-income nations, so many people die at home and are buried in remote areas without being recorded.
  10. Of $4.4 billion dedicated to a COVID-19 response by U.S. Congress, only 0.1% is being used for an international response. More monetary funding for developing nations could help these countries get COVID-19 prevention and treatment supplies. Also, funding could help low-income nations feed vulnerable groups.

COVID-19 is yet another barrier to ending global poverty and will be a struggle for impoverished nations to recover from. With the help of the international community, low-income nations may recover from COVID-19 and its secondary effects sooner.

—Hannah Drzewiecki
Photo: Flickr

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4 Ways COVID-19 And Global Poverty Connect

COVID-19 and Global Poverty
Since early 2020, the entire globe has been battling the COVID-19 pandemic and attempting to address the outbreak properly. Most of the world’s population is currently under some form of social distancing as a part of a response to the outbreak. From scientific research to increased travel restrictions, almost every country is working on ways to boost the economy while managing the spread of the virus. However, COVID-19 has affected much more than the economy. Here are four ways COVID-19 and global poverty connect:

4 Ways COVID-19 and Global Poverty Connect

  1. The Consumption of Goods and Services: For most developing countries struggling with poverty, much of their economies depend on commodities, such as exports. Food consumption represents the largest portion of household spending, and the increase in food prices and shortages of products affect low-income households. Countries that depend on imported food experience shortages. The increase in food prices could also affect the households’ inability to access other services such as healthcare, a major necessity during this time. These are two significant connections between COVID-19 and global poverty.
  2. Employment and Income: The self-employed or those working for small businesses represent a large portion of the employed in developing countries. Some of these workers depend on imported materials, farming lands or agriculture. This requires harvest workers and access to local farmers’ markets to sell produce. Others work in the fields of tourism and retail. These fields require travelers, tourists and consumers — all of which lessen as COVID-19 restrictions increase. Without this labor income, many of these families (now unemployed) must rely on savings or government payments.
  3. Weak Healthcare Systems: This pandemic poses a major threat to lower-middle-income developing countries. There is a strong correlation between healthcare and economic growth. The better and bigger the economy, the better the healthcare. Healthcare systems in developing countries tend to be weaker due to minimal resources including beds, ventilators, medicine and a below-average economy. Insurance is not always available for low-income families. All of this affects the quality of healthcare that those living within the poverty line receive. This is especially true during the COVID-19 pandemic.
  4. Public Services: Low-income families and poor populations in developing countries depend on public services, such as school and public transportation. Some privatized urban schools, comprised of mainly higher-income families, are switching to online learning. However, many of the public rural schools receiving government funding do not have adequate resources to follow suit. This could increase the rate of drop out. Moreover, it will disproportionately affect poorer families since many consider education an essential incentive for escaping poverty. Aside from school, COVID-19 restrictions could prevent poorer families from accessing public transportation. For developing countries, public transportation could affect the ability of poorer families to access healthcare.

Moving Forward

There are many challenges that families across the globe face as a result of COVID-19. Notably, some organizations have stepped forward to help alleviate circumstances. The World Bank, Care International and the U.N. are among the organizations implementing programs and policies to directly target the four effects of COVID-19 mentioned above.

For example, the World Bank is continuously launching emergency support around the world to address the needs of various countries in response to COVID-19. By offering these financial packages, countries like Ethiopia, which should receive more than $82 million, can obtain essential medical equipment and support for establishing proper healthcare and treatment facilities. These financial packages constitute a total of $160 million over the next 15 months as a part of projects implemented in various countries, such as Mongolia, Kyrgyz Republic, Haiti, Yemen, Afghanistan and India.

– Nada Abuasi
Photo: Flickr