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The Impact of COVID-19 on Youth Poverty in Grenada

Youth Poverty in GrenadaGrenada, an island nation in the Eastern Caribbean, consists of one large island and several smaller ones. Despite its vibrant tropical setting, poverty is a significant issue. Grenada has the highest poverty rate among Eastern Caribbean countries, with youth being the most affected. Half of all children aged 0-17 live in poverty, a rate much higher than the 30% of adults aged 18 and older who face similar conditions. Many youth struggle with unemployment, lack of education and food insecurity, leading them to a state of poverty. However, the United States Agency for International Development (USAID) is working with the Grenada government to diminish youth poverty.

Youth Unemployment

COVID-19 had a devastating impact on Grenadian society. The pandemic led to nearly half of the population becoming unemployed and pushed the extreme poverty rate from 2.4% to 18.4%. The country’s gross domestic product (GDP) also declined due to a drop in tourism. Youth, who comprise about 22% of Grenada’s population, were hit particularly hard. Even before the pandemic, around 26% of young people were unemployed. As of June 2023, more than 36% of Grenada’s youth were unemployed, a situation heavily influenced by the pandemic. With the rise of unemployment, more youth are succumbing to poverty.

Food Insecurity

COVID-19 also led to significant food insecurity in Grenada, with food prices soaring and nearly 40% of the population reducing their food intake. The pandemic further weakened the country’s agricultural economy, struggling to recover from abnormal weather patterns and two hurricanes in 2018. The combined impact of COVID-19 and the 2018 weather events has exacerbated food insecurity among Grenada’s youth, driving many into extreme poverty.

Solutions

Despite the extreme poverty faced by Grenada’s youth, assistance is being provided. In March 2023, USAID funded three new programs to support the country’s young people. The first program, Youth Resilience, Inclusion and Empowerment (Y-RIE), focuses on strengthening government-provided social services and enhancing educational opportunities in schools and the workforce.

The second program, Strengthening Evidence-Based Decision Making for Citizen Security 2.0 (CariSECURE 2.0), will provide resources and technical assistance to build the capacity of youth-serving institutions to collect and analyze data to support youth crime prevention and response. Lastly, the third program, Opportunities to Advance and Support Youth for Success (OASYS) will focus on increasing the diversion of youth away from custodial sentences.

The organization also signed a $30 million Development Policy Credit (DPC) to support Grenada’s economic recovery and enhance its resilience to adverse climatic conditions after the COVID-19 crisis. USAID is working to create a better life and future for the youth of Grenada.

Final Note

COVID-19 increased Grenada’s youth unemployment, food insecurity and poverty rates. However, USAID has implemented three programs to curb the situation and help the country rebuild its economy. With sustained effort, these initiatives could significantly improve the lives of Grenada’s youth and contribute to long-term economic recovery.

– Ellie Buss

Ellie is based in Vancouver, WA, USA and focuses on Good News and Global Health for The Borgen Project.

Photo: Wikimedia Commons

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Foreign Aid Fueled Zambia’s COVID-19 Vaccination Success

Zambia's COVID-19 VaccinationZambia is a landlocked country in South-Central Africa. The nation has a reputation for political stability, avoiding the war and disruption that has dominated much of Africa’s post-colonial history. Despite economic growth, the daily lives of most Zambians have not improved in the last decade, with two-thirds of the population still living in poverty. Like every country across the globe, Zambia faced instability in the face of the COVID-19 pandemic. However, the country’s vaccination program exhibits the effectiveness and importance of international cooperation and donations when it comes to prioritizing global health.

Launch of Zambia’s COVID-19 Vaccination Program

In April 2021, Dr. Jonas Chanda, the Honourable Minister of Health for Zambia, launched the COVID-19 vaccination rollout. The United States Charge d’Affaires, at the United States (U.S.) Embassy, David Young, stated that the U.S. provided $2 billion to the Vaccine Alliance to support the COVAX. The Swedish Ambassador Anna Maj Huktgård congratulated the Government of the Republic of Zambia for achieving an important milestone in the response against COVID-19. She also took this as an opportunity to announce that the Swedish government was allocating a total of $259 million to support the COVAX program. The World Health Organisation (WHO) and the United Nations International Children’s Emergency Fund (UNICEF) worked in collaboration with other partners to support Zambia’s government in implementing the COVID-19 vaccination program.

International Contributions to Zambia’s Vaccination Efforts

In August 2021, the United Kingdom (U.K.) also donated 119,000 vaccine doses to Zambia through COVAX which arrived in Lusaka, as reported by UNICEF and the U.K.’s Foreign, Commonwealth and Development Office. In March 2022, the government of Japan, under an emergency partnership with UNICEF, officially handed over equipment aimed to strengthen the long-term capacity of the health system in Zambia, including the delivery of life-saving vaccines for COVID-19. This support included 82 solar-powered fridge freezers, 25 ‘on grid’ combo vaccine freezers, 120 large vaccine cold boxes and 200 vaccine carriers. This initiative was made possible through the COVAX facility, an international mechanism led by GAVI, CEPI, the World Health Organization and UNICEF to ensure equitable access to vaccines across the developing world. 

National Vaccination Campaign and Foreign Aid

Later that year, in October, the Government of the Republic of Zambia and partners, including the Centre for Disease Control (CDC), WHO and UNICEF, launched a 10-day national COVID-19 vaccination campaign targeting children aged 12 to 17 and adults 18 and above across the country. The nation had had clear goals in its fight against COVID-19, which foreign aid undeniably made possible.

Achievements and Continued Support

In November 2022, the Zambian government celebrated the nation’s achievement of vaccinating 70% of the eligible Zambian population. The U.S. government, through the U.S. Agency for International Development, the Centers for Disease Control and Prevention, the President’s Emergency Plan for AIDS Relief (PEPFAR) and the U.S Department of Defense have since provided nearly 1.9 billion kwacha ($120 million) to respond, prevent the spread of and recover from the toll of COVID-19 in Zambia. The U.S. government also supported integrating COVID-19 vaccination into HIV treatment centers to protect those living with HIV against COVID-19. 

Looking Ahead

Zambia’s successful vaccination program is a testament to the power of global cooperation. The generous foreign aid donations strengthened international relations and a shared commitment to prioritizing global health, especially during the COVID-19 pandemic, reveals what can potentially be achieved when the world unites for a common cause.

– Nia Willis

Nia is based in Carmarthenshire, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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A Deep Dive Into the Health Care System in Ethiopia

A Deep Dive Into Ethiopia’s Health Care System According to a National Library of Medicine study, health care systems in low-income countries remain as fragile as ever. The COVID-19 pandemic put such these systems under immense pressure. An example of this is the health care system in Ethiopia. 

COVID-19 and Health Care Infrastructure

The pandemic highlighted many flaws and shortcomings in the health care infrastructure. Global leaders underestimated the need for health care reform and it was only after the pandemic claimed millions of lives that such leaders recognized the need for reorganization and restructuring to ensure adequate procedures and the anticipation of failures.

A 2022 study reviewed measures taken during the pandemic, offering an alternative means of control based on analysis. Researchers provided a more efficient model for managing deadly diseases and outbreaks, reformulating emergency response measures based on management, protection and containment via control and suppression of transmission, information and support.

The Impact on Ethiopia

Deadly diseases significantly impact global health security. Researchers have found that in countries with limited access to health care services, high poverty rates, and prevalent comorbid diseases, the effects of the pandemic intensified. From early March 2020 to July 2022, Ethiopia reported a total of 491,917 COVID-19 cases and 7,568 deaths, figures that are partly attributable to ongoing poverty-related conditions. Additionally, families experienced significant economic impacts, with about 8.4% of households reporting job losses between March and Oct. of 2020.

Ethiopia’s Response

Following the policymakers’ decision in Ethiopia, the government did not implement a pandemic lockdown like many other countries. Instead, it instated pandemic-preventive measures to reduce the spread of the virus. While somewhat successful, such an approach posed obstacles in implementing community-based services and initiatives to provide additional support to communities. Researchers proposed scaling up community-based resources and approaches as essential support elements.

Like some other low-income countries, Ethiopia could not initiate a country-wide lockdown. Instead, it immediately implemented measures such as thermal screening, contract tracing and isolation, which proved successful. Authorities tailored these measures specifically to the health care system in Ethiopia, weighing the pros and cons. The government demonstrated a strong commitment to addressing the shortage of essential medicines, effectively utilizing resources to produce critical medicine and prioritizing medicinal efforts.

Financing for Health Measures in Ethiopia

Financing is critical to supportive measures enacted to assist countries affected by health crises. It was found that funding for health initiatives and measures in Ethiopia had increased only after the pandemic. Such financial constraints the government of Ethiopia faced during the pandemic led to unprecedented circumstances, such as a shortage of protective equipment. 

According to the Institute of Medicine Committee on the United States (U.S.) Commitment to Global Health, low-income country revenues amount to only 18% of their gross domestic product (GDP), which limits their ability to finance health services, proving consequential in the face of severe health crises. Studies have shown that the level of investment needed to deliver extensive care and improve health care systems requires significant and sustained investment by outside agencies and sources. Additional aid from other organizations is therefore essential. 

Launch of the Response Project in Ethiopia

According to the World Health Organization (WHO), as of Jan. 2024, the Ethiopian government launched the Ethiopian Pandemic Multi-Sectoral Prevention, Preparedness and Response Project. This extensive project aims to address pandemic-related response measures and preparedness. Such analysis is specific to Ethiopia’s specific socioeconomic landscape. In addition, the project will also examine factors like communication and alerts, enhancing the surveillance of outbreaks in some regions of the country.

Dr. Dlamini Nonhlanhla, WHO’s Ethiopia Representative, discussed the initiatives, noting, “The key components and project activities are aligned with the national plans, including Ethiopia’s Health Sector Transformation Plan, the Ethiopia Public Health Institute’s Strategic Plan, the Ethiopian National Health Emergency Preparedness and Response Plan and the Ethiopian Antimicrobial Resistance (AMR) National Action Plan.” Additionally, Nonhlanhla explained that funding would strengthen Ethiopia’s health care systems and other government structures crucial to public health protection. “This fund will enable us to mobilize resources, strengthen health systems and support critical sectors such as agriculture, environment, antimicrobial resistance and animal health, ensuring a holistic approach to safeguarding public health,” Nonhlanhla added.

Role of Government Leadership and Foreign Aid

Since July 2021, the U.S. has donated 10,095,170 COVID-19 vaccine doses to the citizens of Ethiopia, increasing aid to a severely affected country. In a public health crisis, government leadership, as well as foreign aid, is especially critical in mitigating both the economic, health and social consequences of a deadly viral outbreak, proving essential in assisting countries with poorly structured health care systems.

Looking Ahead

The Ethiopian government, with support from international organizations, has taken significant steps to strengthen the health care system in Ethiopia in response to the COVID-19 pandemic. The launch of the Ethiopian Pandemic Multi-Sectoral Prevention, Preparedness and Response Project marks a critical move toward improving the country’s ability to manage future health crises. With continued investment in health systems and targeted foreign aid, Ethiopia aims to enhance its pandemic preparedness and safeguard public health.

– Dominic Samaniego

Dominic is based in Fullerton, CA, USA and focuses on Global Health for The Borgen Project.

Photo: Flickr

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COVID-19: The Success of Sierra Leone’s Vaccine Initiative

Sierra Leone’s Vaccine InitiativeSierra Leone’s COVID-19 vaccination initiative has produced a cost-effective and accessible strategy to reduce vaccine inequity in the country and protect the most vulnerable of the population against new strains of the virus. This groundbreaking initiative underscores a new approach to vaccination processes in developing nations by mobilizing vaccine centers and reducing treatment costs.

Vaccine Inequity in Sierra Leone

As of March 2022, only 15% of the population of low-income countries had received one dose of the COVID-19 vaccine, compared to 80% of those in high-income countries. In Sierra Leone specifically, factors such as geographical isolation and poverty have acted as barriers to receiving vaccination for the virus. On average, a Sierra Leonean would have to undertake a three-and-a-half-hour round journey to receive a vaccine, costing them more than one week’s wages.

The low vaccination rates in Sierra Leone leave the population vulnerable to the effects of COVID-19, even after the height of the pandemic. The risk of disease recurrence and new virus variants threatens those who have yet to receive their first vaccine. Due to the low vaccination rate, these resurgences could result in further lockdowns, affecting the country’s economy’s growth and threatening individuals’ livelihoods.

The Aims of Sierra Leone’s COVID-19 Vaccine Initiative

In 2022, as a result of the low vaccination rates in the country, Sierra Leone’s Ministry of Health (MoHS) and the nongovernmental organization (NGO) Concern Worldwide developed a new model to allow widespread access to the vaccine. Their primary aim was to tackle the geographical and economic barriers preventing the population from receiving vaccination for the virus.

By mobilizing vaccine doses and nurses within the country, the strategy can reach the most remote rural communities in Sierra Leone who would otherwise be unable to access the treatment. This alleviates the long and costly travel to medical centers to receive the vaccine.

In addition, the initiative vastly reduced the costs involved with administering a dose of the vaccine. Similar strategies implemented across other developing countries saw an average price of $80 a dose; by comparison, Sierra Leone’s COVID-19 vaccination initiative has lowered the price to around $33.

To maximize the cooperation of communities with the initiative, the strategy engaged in educating cultural and village leaders before the vaccine administration. Information was given on the safety, effects and importance of the vaccination in each village involved in the initiative.

The Results of Sierra Leone’s COVID-19 Vaccine Initiative

The strategy proved a huge success in reducing vaccine inequity in Sierra Leone and improving immunization rates among the population. By December 2022, Sierra Leone had immunized 70% of its adult population, achieving the target the World Health Organization (WHO) set. Furthermore, as of March 2023, the strategy resulted in almost eight million vaccine doses being administered to the population.

During the implementation of the strategy, new methods were discovered to render the process even more cost-effective. Due to the high cost of the initiative being made up of transportation fees for medical equipment and professionals, bundling other vaccines saw a further reduction in this cost. As proposed by the Ministry of Health, a combination of the COVID-19 vaccine, Human papillomavirus (HPV) vaccination for girls aged 10-12 and routine immunizations for children aged 0-6 at these mobile vaccine sites could simultaneously improve the cost-effectiveness of the program and give more people access to life saving treatments.

Looking Forward

The success of Sierra Leone’s COVID-19 vaccination initiative underscores a pivotal moment in reducing vaccine inequity and improving access to immunization in developing nations. Mobilizing health care workers and facilities to the most isolated communities removes the barriers preventing population members from receiving vaccinations and the most vulnerable members of society can access treatments for preventative diseases.

This initiative provides a holistic model through which many other vaccinations can be administered more widely than ever before. By immunizing the population against these preventative diseases, the country can see more stable economic growth through a healthy workforce and reduced risks of virus resurgences or lockdowns.

– Ben Kane

Ben is based in London, UK and focuses on Global Health for The Borgen Project.

Photo: Flickr

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Remittance to Bangladesh

Remittance to BangladeshIn recent years, remittances have become one of the primary economic contributors in recipient countries. Remittances are money transfers that international migrants send to their families in their home countries. In 2022, these money transfers to low- and middle-income countries were $647 billion. Remittance to Bangladesh has become a vital economic pillar, for a country of 171 million people.

Bangladesh’s Standing in Global Remittance

According to the World Migration Report, Bangladesh ranked as the eighth-highest recipient of remittances globally and third-highest in South Asia. In 2022, the country received a staggering $21.5 billion inflow of remittance. It is a major source of economic growth and development for Bangladesh, contributing 4.7% to the country’s GDP.

Overview of the Remittance Sector

Since independence, migration has been a significant factor in improving living standards and reducing poverty and unemployment in Bangladesh. With a huge young population and an increasing unemployment rate, many citizens have taken short-term jobs abroad.

In 2023, a record 1.3 million individuals left the country for overseas work, and many others have unregistered contracts. These migrations are mostly for unskilled or semi-skilled work.  The government aims to send an additional 1 million migrants to various countries, expanding the diaspora and increasing inward remittances by creating an “overseas employment market expansion roadmap.”

Economic and Social Factors

A mix of economic and social factors influences migration patterns from Bangladesh. Economically, many Bangladeshis migrate to escape poverty, seeking better job opportunities abroad due to limited prospects at home. The country’s high population and limited job market create pressure on local employment, pushing people to look for work in countries with higher labor demand. Socially, the desire to improve living standards and provide better education and health care for their families motivates migration, according to the Migration Policy Institute (MPI).

Remittances to Bangladesh have a profound impact on the economy. Back-home recipients use these funds to finance essential needs, education and small businesses, according to the MPI. This financial support often boosts the production of tradable and non-tradable goods and services, influences land markets and fosters the growth of banking and commerce sectors.

About 70% of remittance recipients use the funds for essential needs like food, clothing and shelter. They also invest significantly in agriculture, small businesses and housing, driving local entrepreneurship and job creation.

Improving Food Security

A World Bank analysis indicates that households in rural Bangladesh receiving remittances are more food secure compared to those that do not receive remittances. This means that remittance-recipient families are better able to afford and access sufficient food, leading to improved nutritional outcomes and overall well-being.

However, family support is not the sole driving factor of inward remittances. The migrants’ skills and education levels also play a part. A migrant with a secondary education is likely to send back more money than someone with no formal education. This highlights the importance of education and skills development in maximizing the remittance potential of future generations of Bangladeshi migrants.

Remittance Incentive Programme

The Bangladeshi government recognizes the immense contribution of its migrant workforce to the overall economic growth of the country. The Remittance Incentive Programme, launched in July 2019, is a significant initiative of the government. This program aims to encourage Bangladeshis working abroad to use official channels for sending money home, rather than informal systems. The program offers a cash reward directly deposited into the sender’s bank account for remittances sent through legal procedures. The incentive was 2% initially, then raised to 2.5% in 2022 and currently stands at 5%. This initiative promotes the use of formal channels for remittance and enhances transparency.

Remittance and the COVID-19 Pandemic

During the COVID-19 pandemic-induced global economic turmoil, the World Bank predicted that reducing inward remittance to Bangladesh would hit the economy hard. Despite that, remittance inflow started to increase in the last half of 2020 making it to the list of the top ten highest remittance recipient countries

This significant inflow has improved living standards, financed education, boosted local economies, and elevated the country’s foreign currency reserves past $46 billion. The remittances have also played a crucial role in stabilizing the balance of payments and enhancing the nation’s credit rating

Conclusion

Remittance to Bangladesh can be a powerful force to reduce poverty. Supporting education and skills development and fostering safe working conditions for migrant workers, can ensure this vital lifeline continues to flow and empower the nation for generations to come.

– Sumaiya Sultana

Sumaiya is based in London, UK and focuses on Business and New Markets for The Borgen Project.

Photo: Pixabay

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Innovative Solutions to Hunger in Gurugram

Hunger in GurugramGurugram, also referred to as Gurgaon, is a city located in northern India, just 32km outside India’s capital city, New Delhi. Until recently, Gurugram was an agricultural wasteland, but it has, for the most part, regenerated itself into an affluent town, which is home to offices of some of the world’s largest companies, such as Google and Nokia. Alongside these wealthy corporations and white-collar jobs, however, exists poverty-stricken villages and slums, where individuals did not adapt to this change, living in poverty with poor infrastructure, overcrowding and sewage contamination. Therefore, despite the city’s recent reformation, there are still prevalent rates of poverty, where communities are struggling with necessities.

Hunger in Gurugram

In its poorest areas, hunger in Gurugram is rife, which has now been exacerbated by COVID-19 and lockdowns. Since COVID, a large number of people rely on dry food rations, meaning many do not have access to a hot cooked meal. This is where the work of a nongovernmental organization (NGO), Rasoi on Wheels, which was set up in 2016, becomes relevant. The nonprofit is a grassroots initiative with a small number of team members who work to alleviate hunger in Gurugram.

As the name suggests, the charity exists as a mobile food truck, which prepares meal boxes in kitchens in the morning and delivers them straight to areas in need the same day. This increases access to healthy, safely cooked meals for less privileged communities. Rasoi on Wheels has served more than 50,000 meals since the foundation started, evidence of its positive impact in alleviating hunger.

Positive Outcomes of Mobile Food Resources

A result of food insecurity in Gurugram means that individuals are desperate to eat and they often consume out-of-date leftover foods, such as leftovers and scraps from bins. This dangerous practice leads to illness and severe cases of food poisoning, which negatively impacts the health and cleanliness of these areas. Therefore, as well as reducing hunger in Gurugram, Rasoi on Wheels also increases access to safe, fresh and nutritious foods, preventing individuals from resorting to dangerous methods of accessing food. The nature of mobile food resources is often praised as a driving force of positive change, commending the work of Rasoi on Wheels, as it “effectively expands food distribution to highly vulnerable populations.”

The Future of Gurugram

Gurugram is an example of how a city can be home to two extremes: rich and poor. Although its transformation to wealth is promising, we must also acknowledge that poor communities still lack basic amenities and resources, such as food. However, with the efforts and hard work of NGOs, there lies hope for a more equitable future for Gurugram, where prosperity is shared more equally.

– Amelie Bunce

Amelie is based in the UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Pexels

How Does Higher Education Affect Poverty in Malaysia?

Higher Education in MalaysiaLocated in Southeast Asia, Malaysia is one of the founding partners of the ASEAN trade bloc, with a population of 34 million. The island nation is a developing economic power within the region, with an expected steady 3.9% economic growth rate as of the first three quarters of 2023. The commonwealth country now has one of the most diverse population demographics in the world. However, access to higher education in Malaysia is a limiting factor for further economic development and significantly affects upward mobility. Education is key to lowering poverty rates.

As a low to middle-income country, Malaysia has seen an increase in poverty rates, growing from 5.6% in 2019 to 6.2% in 2022. This increase can be credited to the effects of the COVID-19 pandemic, leading to an increase in global unemployment and a prominent decrease in international trade. New research papers from UNESCO display how global poverty rates would be reduced if all adults completed secondary education. Education allows the underprivileged to obtain higher-paying jobs, allowing many to break the poverty cycle. The following are key facts about higher education in Malaysia and how it may affect the poverty rates in the country.

Talent Drain & Race Based Admission in Malaysia

In the past two decades, Malaysia has experienced a significant talent drain, and this trend is often attributed to the racial quota system in the country’s public university admissions. This policy has led to the rejection of high-achieving students from Malaysia’s pre-university programs, even as some of them secure places in prestigious international universities like Harvard and UCLA. Consequently, many Malaysians choose to pursue higher education abroad, resulting in a brain drain that can negatively impact the country.

The exodus of talent has the potential to reduce Malaysia’s attractiveness to foreign direct investments (FDIs), as a skilled workforce is a crucial factor for foreign companies when deciding where to invest. This, in turn, could limit the creation of job opportunities within the country, making it more challenging for individuals to escape poverty in Malaysia.

The race-based admission restricts many locals’ access to higher education, with a racial quota for 90% of places to be reserved for Malays. This quota is disproportionate to the country’s demography. It is divided into three main groups: 62% Malays, 21% Chinese and 6% Indian as of 2015. As a result, many cannot access public universities, which affects their ability to achieve social mobility and lift themselves out of poverty in Malaysia.

Lack of Maturity in the Higher Education System in Malaysia

The Malaysian education system is still relatively new compared to other education systems, such as the U.K. and the U.S.. The Malaysian education system has seen significant change throughout the past century due to colonialism, shaped to promote their colonial goals by implementing British and Japanese ideals and culture. Due to the history of change, the new education system in Malaysia still lacks maturity and experience, which may harm the hireability of Malaysia’s domestic university students, affecting their ability to obtain higher-paying jobs and thus making them unable to alleviate poverty in Malaysia.

Affordability & Inequality in Higher Education System in Malaysia

There has been a notable increase in the number of undergraduate students discontinuing their studies at Malaysian universities for various reasons, with a significant proportion citing financial challenges, including high tuition fees and costly accommodation. This emerging pattern exacerbates existing societal inequalities in Malaysia by impeding social mobility due to the reduced affordability of higher education. Consequently, this trend hampers their educational attainment and career prospects, thereby limiting their ability to escape poverty in the country.

Looking Ahead

There has been an increase in effort to limit the talent drain away from Malaysia, with more grants given to fully sponsor talented students in their domestic and overseas studies while guaranteeing that they will work in Malaysia after graduation. This policy also contributes to the government’s plan to improve the affordability of higher education. Furthermore, there have been significant efforts to get rid of race-based admission within Malaysia’s education system, with increased commentary about moving away from reserving 90% of places in pre-university programs for Malays. This change could decrease poverty in Malaysia as access to higher education increases for ethnic minorities.

While it is evident that there is a lack of maturity within the Malaysian education system, the government has established the “Malaysian Higher Education Blueprint,” which is due for completion in 2025. This program is part of their aspiration to rank the Malaysian education system among the highest quality. The blueprint consists of 10 planned changes that will be executed to improve outcomes for graduates through schemes such as partnerships with firms through internships to improve the hireability of domestic graduates. This plan can potentially lower poverty rates in Malaysia in the long run by increasing job opportunities within the country.

– Matthew Fung
Photo: Flickr

Extreme Poverty Fell to Pre-Covid Levels in 2023

Extreme Poverty FellAccording to a report by the World Bank, extreme poverty fell to pre-COVID levels in late 2023. This is a much quicker turnaround than many economists had originally thought, with some expecting this would take 10 years. While we can rejoice that this was not the case, the recommendations of those same economists  -  that donor countries must increase their aid budgets to recommended standards  –  still ring true.

COVID-19 in the Developing World

For many in the developed world, the detrimental impact of COVID was limited to restrictions on social gatherings, school and office closures and the cancellation of music and sports events. Of course, there were many tragic cases of lives lost too early, leaving a lasting impact on many. But thankfully for the majority of those in the West, society had the structural and digital frameworks to overcome the enormous shock that was the pandemic.

In contrast, COVID-19 in the developing world brought about different levels of devastation. It may have taken longer for the virus to seep into these countries, but when it did eventually hit, populations were more financially vulnerable and health systems were not ready.

It was apparent even amid the pandemic, that the least-developed countries were more vulnerable socioeconomically than the rest of the world. Where governments, businesses and individuals in developed countries may have had savings to fall back on allowing them to self-sustain and support one another, this was less often the case among the poorest countries in the world.

Moreover, certain disadvantaged groups such as women and less-educated workers were disproportionately affected by COVID-19, in middle and low-income countries in particular. As an aftereffect, millions more were plunged into extreme poverty during the year 2020.

COVID-19 and Extreme Poverty

The World Bank states that extreme poverty will mean people ‘are more likely to be malnourished, they have less access to services like education, electricity, sanitation and healthcare, and they are more vulnerable to conflict and climate change.’

Last year, the World Bank found that those in extreme poverty worldwide increased from around 700 million to more than 760 million in the year 2020. While this may not seem a seismic change, consider that this set us back to extreme poverty levels not seen since 2016. Only last year was it found that extreme poverty fell to pre-COVID levels. Although positive, the World Bank points out that considering these measures, we have lost three years in the fight against poverty worldwide.

Low-Income Countries Behind on the Road To Recovery

In many ways, to say that efforts to eradicate extreme poverty are back on track would be false. This is because all of the recovery has taken place in high- and middle-income countries. Many low-income countries are still experiencing increases in extreme poverty due to their incapability to roll out social welfare programs to counter the effects of COVID-19. This poses a huge problem for the aid sector as donor countries look to cut fiscal spending following the pandemic, but much of the developing world is now in need of aid more than ever. With the worst impacts of the climate crisis still to come, some have gone as far as suggesting that the aid system is running empty.

Aid Can Go a Long Way – How Extreme Poverty Fell

Back in 2020, researchers recommended that one way to reduce extreme poverty is to allocate more aid to low-income countries (LICs). This is because lower unit costs in those countries mean that development aid can go further and benefit more people. The Borgen Project has identified numerous examples of aid being extremely successful at delivering the desired results in LICs. Take the case of Legacy Manufacturers Limited covered in an article from April last year. A small grant of $50,000 from The Visa Foundation helped this business overcome import and manufacturing difficulties, allowing them to successfully deliver their soya, corn and maize products to the national market in Zambia. Without smart investments in local organizations such as Legacy, LICs have few opportunities to make these kinds of developmental steps which will help them overcome external shocks going forward.

The Role of Official Development Assistance

Foreign aid in the form of grants has been classed as Official Development Assistance (ODA) since the late 1960s. To be classified as ODA, donations must fulfill certain criteria. The U.N. recommends that donor countries commit 0.7% of their gross national income (GNI) to ODA.

Since the onset of COVID-19, there has been an overall increase in ODA, largely due to the worldwide refugee crisis. In 2022, the figure hit a record high of $204 billion. However, there has not been a unanimous move towards the U.N.’s 0.7% target. U.S. ODA still languishes at 0.23% of GNI. The U.K.’s ODA/GNI% fell from 0.7% to 0.5% from 2020 to 2022, amounting to around $3 billion in aid lost. Moreover, the number of countries meeting the U.N. target of giving 0.7% of GNI in aid fell from six countries to four in the same period.

Improved ODA figures can go a long way in combating extreme poverty conditions globally.

– Alex Finch
Photo: Flickr

USAID programs in Rwanda

USAID programs in RwandaUSAID has worked in Rwanda since 1964, when Rwanda gained independence. It strives to improve the economic capability, social climate and environmental well-being of the world’s most vulnerable and poor people, and is creating an environment of self-reliance in the recipient nation and nurturing a climate in which a wealth of benefits are enjoyed. USAID programs in Rwanda focus on food provision in commodities and assist in health care and sanitation provisions, later expanding to look at economic policy more systematically while supporting maternal health and private enterprise development.

Poverty in Rwanda

Since the turn of the century, poverty has been declining promisingly in Rwanda, especially when looking at Rwanda’s domestic poverty line. The country experienced an 18.5% decrease in the number of people living in poverty between 2005 and 2016. Median consumption and inequity also all moved favorably in all regions, with increased possession of household assets such as mobile phones, irrigation and electricity all of which facilitate the further ascension from poverty.

However, between 2022 and 2024, the World Bank forecasted only a 2 percentage point drop in those living in poverty, due to the decreasing magnitude of the effect between GDP per capita increase and poverty decrease.

The population is vulnerable to malaria, with an incidence of 76 out of every 1,000 at risk in 2022. Malaria epidemics tend to strain a country’s resources, hindering poverty alleviation.

Also, Rwanda’s public sector has been running consistent fiscal deficits with an increase in public debt over the last few years, this has led to a very high debt-to-GDP ratio (56.7% in 2019), making poverty alleviation spending for Rwanda more risky and sparing.

Household Economic Security and Innovation

USAID has issued the largest development investment grant for a decade, through its Development Innovation Ventures program, in a continued effort to assist in the alleviation of extreme poverty, through USAID programs in Rwanda. The nonprofit organization Village Enterprise, which seeks to scale its operations in poverty alleviation in Rwanda, will utilize this $6.5 million grant, and will implement it via its programs on the ground, targeting people at the individual level and also state level. This is an extremely useful source of funding for the organization to roll out its “Poverty Graduation” model. This will allow individual households to innovate and be entrepreneurial, helping themselves out of poverty.

For more than 30,000 impoverished households, Village Enterprise is now ready to provide training and skills within the realm of business and finance, through a year-long mentored program. This, in the hope of encouraging entrepreneurship, will allow households set up a diverse range of businesses, including retail sales of clothing and also more technical services such as bike repairs. Government staff and parasocial workers will mentor the individuals and this flourishes from another avenue of the utility of this grant.

Village Enterprise will train government personnel to be capable mentors who teach household entrepreneurs how to be successful, as well as monitor the capability and efficacy of government programs.  Over time, this could enable Rwanda to self-sustain its development and achieve its goal to eliminate extreme poverty by 2030, as part of its NSSG.

Health Care Support

In terms of health initiatives, USAID programs in Rwanda work with local governments within the country, to improve the function of their health services. This means that they can more adequately access finance and manage their agencies, whilst USAID facilitates the supply of drugs to treat illnesses and also aids in the monitoring of potential future diseases. More specifically, the USAID program in malaria reduction has led to the provision of mosquito nets, and insecticide spray has led to a decrease in malaria incidence by as much as 70% in some rural villages.

More recently, in response to the COVID-19 outbreak, community health workers were able to transfer their knowledge in identifying and isolating malaria cases in Rwanda, through more sophisticated monitoring and tracking practices. Materially Rwanda has received 32% of its total vaccine supply from the U.S. Disease and mortality relief plays a large role in poverty reduction, as greater access to health care allows for greater economic participation, stops a loss of talented human capital due to death, and facilitates a decline in birth rates, stopping overpopulation and overstrain on state resources.

Educational Initiatives

USAID programs are present in every public school in Rwanda. The organization launched its new LEARN project in 2020. This built upon the previous USAID programs in Rwanda, furthering educational objectives by increasing focus on alleviating the gender disparities women face in education and creating a program that includes vulnerable and disabled people so that the program is as effective for them as for others. Rwanda has experienced great success in education with 2,742,551 children in primary school in 2022, the highest in sub-Saharan Africa.

The core of the mission is to be able to “improve the literacy outcomes for all Rwandan children by the end of Grade 3,” according to USAID. The LEARN project is working to alleviate poverty amongst women and girls by changing some of the cultural and social stigmas associated with women and education, for example, by creating inclusive teaching environments, to mitigate the issue of teacher behaviour negatively influencing female participation, and facilitating the uptake of more teaching roles by women through mentoring programs.

USAID programs continue to be successful, with non-readers in Rwanda standing at 20% in 2022, a 27% drop from 2018. This is especially positive when viewed in the context of post-COVID-19 activity, which yielded a worldwide reading loss.

The Future

Future grants will support proven solutions to reduce poverty and promote self-reliance. The World Bank recognizes the importance of encouraging domestic savings in Rwanda’s development. This includes creating business opportunities and learning how to manage them. Alongside aid, there appears to be a need for infrastructural improvements and a strong welfare system for health, education and social services. These measures can potentially foster a culture of savings and investment, reducing poverty in Rwanda in the long term.

– Tevin Muendo
Photo: Flickr

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Impact of COVID-19 on Poverty in Malaysia

Impact of COVID-19 on Poverty in MalaysiaMalaysia saw its first confirmed case of COVID-19 on January 24, 2020. The Malaysian government implemented the Movement Control Order (MCO or PKP) around two months later in response. This mandate restricted travel, work, assembly and established quarantine measures jeopardizing the financial integrity of Malaysian households. Here is some information about the impact of COVID-19 on poverty in Malaysia as well as the country as a whole.

The World on Pause

For fully vaccinated individuals, the MCO ended in November 2021. However, under the mandate, conditional and variable ordinances ultimately played a part in the impact of COVID-19 on poverty in Malaysia.

Working in multiple phases, the MCO developed into the Conditional Movement Control Order (CMCO/PKPB), Recovery Movement Control Order (RMCO/PKPP) and the National Recovery Plan (NRP/PPN). These restrictions prevented movement between states, travel to and from Malaysia and mass gatherings in addition to the closure of schools, government and private premises except those considered essential. Those who violated the MCO were at risk of receiving fines or facing jail time.

Hurting Those Already Struggling the Most

Three-quarters of the Malaysian population live in urban areas, with the majority of individuals falling into the 15-64 age group. A four-part research study that UNICEF and UNFPA conducted titled “Families on the Edge” found that a typical Malaysian household has an average of 5.5 members.

The head of these households are mostly married Malay males around 46 years old with low educational attainment. These workers face a high risk of unemployment, pay cuts or other stresses to household income as they were in jeopardy before the pandemic.

Reports have indicated that a 5% increase in employment occurred between March 2020 and June 2021. Despite the rise, a third of those employed before the crisis experienced work disruptions and 27% faced income reduction.

The World Bank found that around 65% of jobs in Malaysia cannot occur remotely even after modifying them so that they were in an online format. This is because approximately 51% of jobs require close physical proximity. With the MCO restrictions, these jobs were most vulnerable with one-fourth of heads of households experiencing unemployment during this time.

The Impact of COVID-19 on Food and Education

The impact of COVID-19 on poverty in Malaysia consequently affected access to food and quality of education. With little to no income, households spent around 84% less on education and 4% less on food between December 2019 and June 2020. While expenditure on food reduced, approximately 30% reduced food intake itself to cope with financial difficulties.

While employees adjusted to remote working, children needed to transition to online learning. Two-fifths of children do not have access to the required equipment (such as a computer) or internet connection to resume their education.

Closures have also prevented children from impoverished families from accessing meals provided at school-distributed supplemental food programs. This food insecurity pushed households to adopt cheaper and less healthy diets, further threatening the country’s child malnutrition crisis.

A Citizen’s Surrender

Some low-income residents resorted to waving white flags from their flats during the government-mandated lockdown to express the financial stress they were experiencing. This Bendera Putih, or “White Flag” movement emerged to help families ask for assistance. The white cloth outside their homes would encourage others to donate food.

In response, three computer science students from Multimedia University Cyberjaya urgently developed and released the “Sambal SOS” app within the same month the White Flag Movement gained traction. More than 7,000 users registered on the site just two days after its launch.

Here, users could digitally and anonymously report that they needed help. They then could connect with other users ready and able to provide aid.

An Economic Recovery Plan

Prime minister Tan Sri Muhyiddin Yassin announced the Pelan Jana Semula Ekonomi Negara (PENJANA), also known as the Economic Recovery Plan, in June of 2020. This stimulus package totaled RM35 billion (more than $7 billion) allocated to 40 initiatives organized into “three key thrusts:”

  • Empower People
  • Propel Businesses
  • Stimulate the Economy

Some initiatives to empower people included a wage subsidy program, social protection for the gig economy workforce and the internet for education and productivity. PENJANA funded entrepreneurship financing to propel businesses while supporting small enterprises through e-commerce and tourism financing. Initiatives to stimulate the economy included a campaign to buy Malaysian products and financial relief for those working in the agriculture/food sector.

Although poverty rates are still higher than before the COVID-19 pandemic, poverty levels have decreased by 16% between May 2020 and March 2021. Government assistance increased overall average household income since 2019, including disabled-headed households.

Households rely on savings, government and Zakat assistance for financial support as the labor market recovers. While PENJANA has proven to help boost the economy temporarily, many families still do not receive registered business-related aid and do not have social protection or insurance. The impact of COVID-19 on poverty in Malaysia emphasized that social protection assistance still needs to improve its scope of coverage to help the urban poor rebuild post-crisis.

– Aishah French
Photo: Flickr