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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

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The Necessity of Vaccine Diplomacy

Vaccine DiplomacyWhile the COVID-19 vaccine has helped to reduce destruction and devastation from the pandemic, the virus is still spreading across the globe. According to Dr. Peter Hotez “organized hostility against the scientific community,” may be public health’s biggest enemy. However, on a global scale, the most serious threat is the lack of vaccine diplomacy and effective health care in geopolitics. Solving this crisis requires the United States and other western countries to prioritize the distribution of pandemic response resources so that everyone can lead healthy, safe lives regardless of their location.

Inequities of Vaccine Resources

The COVID-19 pandemic has increased the global death rate by 20%, shut down economies and dismantled health care systems across the world. Despite the fact that the COVID-19 vaccine is now readily available in many developed countries, many low-income countries remain highly unvaccinated while the United States eases pandemic funding. With monkeypox cases on the rise, the fight against global health crises has hit a major roadblock, as low-income countries are scrambling for vaccine resources amid slowing economies.

Developed countries have a humanitarian responsibility to ensure that low-income countries have access to the healthcare resources that North American and European countries have. Additionally, novel variants of COVID-19 often arise from unvaccinated populations, which means that the pandemic will only worsen unless we make a concerted effort to fully vaccinate developing and low-income countries, according to Dr. Hotez.

Making a Commitment to Vaccine Diplomacy

Today, less than 20% of people in low-income countries have received their first dose of a COVID-19 vaccine. The next step is for the United States and other world leaders to provide more resources to help get shots into people’s arms in developing countries. According to The Borgen Project’s action center, “This essential funding will go towards vaccines, tests, last-mile efforts and treatment so we can continue vaccinating the rest of the world, save lives and prevent new variants from emerging.” It’s an important investment that will not only save the lives of people in the most vulnerable places across the globe but will also help to protect the well-being of Americans.

Overall, vaccine diplomacy is also necessary to conquer vaccine skepticism, which is keeping millions of people from getting vaccinated. In order to effectively fight against the worsening global health crisis of COVID-19 and monkeypox, the United States and other economic powerhouses should prioritize geopolitical cooperation with developing countries to collaborate on equitably distributing vaccine resources.

– Ella DeVries
Photo: Flickr

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US Approval of COVID-19 Vaccines For Young Children

COVID-19 vaccines for young childrenIn late June 2022, the CDC and FDA approved the emergency use of COVID-19 vaccines for young children such as Pfizer and Moderna for children ages 6 months to 5 years old. While countries worldwide have received vaccinations from Pfizer and Moderna, the U.S. is the first country to approve vaccines for children under five. Though children in this age group are less likely to experience severe infection than other age groups, the vaccines for young children were worth recommending as it works to reduce the spread of COVID-19. As countries across the globe continue to vaccinate their people, what does the U.S. approval of vaccines for children under five mean for people worldwide?

COVID-19’s Effect on Children Worldwide

Since the beginning of the pandemic, 543 million cases of COVID-19 have been reported worldwide. As of December 2021, 17,200 COVID-19 deaths have been reported in adolescents under the age of 20, making up 0.4% of deaths worldwide. The effect on children is harder to understand. Data on child excess mortality and case numbers are inconsistent. Numbers disproportionately represent high-income countries and while the pandemic hits the poorest children the hardest, the effects on middle and low-income countries are underreported.

Along with the direct health effects of contracting COVID-19, children are experiencing indirect effects from prolonging the pandemic. Specifically in low-income countries, children have been affected by the strain on the healthcare system, such as disruptions from routine care and lost family income.

For example, according to UNICEF, 80 million children under the age of one may miss out on other essential vaccines because of the disruptions of the pandemic in May 2020. With increased vaccination rates worldwide, the hope is the pandemic can be mitigated and such effects on children will decrease.

The Pfizer and Moderna vaccines for young children approved in the U.S. have a smaller dosage than their adult counterparts. For Moderna, two doses given four weeks apart are 25 micrograms each. With Pfizer, three shots contain three micrograms each. Each vaccine contains just a fraction of the dosage given to adults.

Worldwide Childhood Vaccine Distribution

Since the beginning of the pandemic, health care responses have not been equitable across the globe. While 66% of the world has been vaccinated against COVID-19, only 16% of people in low-income countries have received one dose as of May 2022. Initiatives similar to the WHO’s COVAX program has helped distribute COVID-19 vaccines to low-income countries. As of May 2022, Pfizer has distributed 3.5 billion COVID-19 vaccines to over 175 countries.

As the U.S. was the first country to approve Pfizer and Moderna vaccines for children under 5 years old, other efforts are underway across the world. Pfizer and Moderna are not the only COVID-19 vaccines, as a Cuban vaccine has been given to over 1.7 million children under the age of 18. This vaccine is now being produced for Iran, Vietnam and Venezuela.

Vaccine Regulations and Authorizations

Pfizer and Moderna are some of the most prominent vaccines as they are making up around 33.6% of the total vaccines distributed in Africa. The companies are working to get vaccines for young children approved in other countries. Pfizer says they are committed to protecting all age groups from COVID-19 and are working to ensure other countries will follow the actions of the U.S. authorization. The company plans to submit authorizations for vaccinations under five to regulators around the world. For example, the company will request authorization from the European Medical Agency beginning in July 2022.

Ultimately, the vaccine regulations and processes differ for each country. Countries will license various vaccines for different age groups depending on their own analysis of the safety and efficacy of the vaccines. As WHO’s Chief Scientist Dr. Soumya Swaminathan states, countries should follow their guidelines to determine their own calculated risks. Vaccine companies like Pfizer and Moderna will work with health care providers, governments and communities as they continue to expand access to healthcare throughout the world.

Conclusion

While it is unclear when each country will approve vaccines for young children and start distributing the shots, companies similar to Pfizer are working around the world to make sure children will have access to the vaccine.

– Abigail Turner
Photo: Flickr

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COVID-19’s impact on North Korea

COVID-19's impact on North KoreaOn May 12, 2022, the president of North Korea, Kim Jong-Un, made a public appearance. For the first time, he was wearing a mask. The world took even greater surprise when he declared that North Korea was under its first lockdown. This calls into question: what is COVID-19’s impact on North Korea?

Isolated From the Rest of the Globe

Prior to this announcement, North Korean officials claimed that not a single case of Coronavirus had entered their country. The nation, isolated from the rest of the globe, has previously endured life-threatening conditions. Recently, after a severe flood, North Korea has faced its most intense food shortage in the past decade. What’s more, its already limited healthcare system has deteriorated and left millions of people without adequate care.

Many question the accuracy of disease data. As a closed-off country, journalists find it very difficult to paint the full picture of North Korea. For instance, researchers were unaware of the 1990s North Korean famine until its aftermath, when survivors told their famine stories.

Draconian Lockdowns

Professor Park Won-gon, from the Department of North Korean Studies at Ewha Woman University predicted that North Korea could “institute draconian measures to those of its biggest ally, China,” according to VOA News. This meant strict lockdowns confining people to their homes, workplaces and dorms. Unlike China, though, North Korea doesn’t have the basic food supplies that China has to enforce such extreme restrictions. Consequently, thousands of people in North Korea are starving to death under this new lockdown protocol. Citizens could not access new harvests or markets which further strangled the economy.

The lockdown also stymied other solutions proposed by organizations. Particularly, the lack of mobility severed communication with international agencies. COVID-19’s impact on North Korea has, thus, proved massive. Medical resources and help have been inaccessible due to such stringent lockdowns.

Herbal Medicine: Fix or Fallacy?

Without vaccines, North Korea has resorted to herbal solutions. KCNA recently reported that “Thousands of tonnes of salt were urgently transported to Pyongyang city.” North Korea will use salt to produce an antiseptic remedy — in place of vaccines. Shanghai also transported millions of traditional medicines like herbal remedies and flu capsules to address COVID-19 in North Korea.

Unfortunately, these have no scientific grounding. Citizens have been drinking teas, salt water and even taking antibiotics. However, due to mass famines, many North Koreans have weak immune systems.

It’s unclear if this has worked. The treatments are approved by the DPRK, which develops methods for “scientifically controlling the spread of the…virus.”

Before these herbal treatments, North Korea reached around 400,000 cases daily. Recently, it reported “about 17,000 to 30,000 new fever cases.” Many experts believe North Korea is manipulating health data to shield itself against geopolitical consequences. Yet if it isn’t manipulating data, these herbal remedies may help mitigate COVID-19’s impact on North Korea.

Necessary Compromises

So far, North Korea has rejected most international help. Aid agencies have opened their doors to provide the nation with the necessary medical resources. Kim Jong-Un twice denied vaccines from Covax, according to The Washington Post. South Korea and the U.S., too, have asserted that they are open to providing aid. Nonetheless, North Korean elites continue to prioritize geopolitical leverage over the health of their constituents. It remains unclear whether North Korea will accept aid and scientifically proven disease resources from other countries.

Looking Forward: The Broader Picture

North Korea’s sudden outbreak demonstrates that the COVID-19 pandemic is not nearing an end. While the U.S. and other major nations are equipped with a “vaccine arsenal,” other countries are not as fortunate.

As of May 18, 2022, one report found that fewer than 13% of people in low-income countries are vaccinated. With such low rates, COVID-19’s impact on North Korea and developing countries is disproportionately larger than developed nations.

These concerns are urgent. Officials in Geneva told reporters that “uncontrolled transmission of the virus” in developing countries could give rise to new COVID-19 variants, The New York Times reports. North Korea, for example, could be a new variant’s breeding base.

Although North Korea hasn’t accepted aid from many countries, it seems to be getting health resources from China as of May 30, 2022. However, if the outbreak becomes too severe, North Korea will always have the open arms of the U.S. and U.N. to provide assistance.

– Ashwin Telang
Photo: Flickr

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Local Rice Barter-System Fights Hunger in Bali

Hunger in BaliWhen the COVID-19 pandemic limited human connection and disrupted everyday life, human unity and kindness were more valuable than ever. Since the confirmation of its first case in February 2020, Indonesia has recorded more than 4 million coronavirus cases and over 140,000 deaths. The prevalence of COVID-19 in Bali, in particular, harmed the nation’s economy, resulting in a growth in hunger. Fortunately, a new community-based program seeks to help hunger in Bali by helping individuals experiencing food insecurity while also combatting plastic waste.

Effects of COVID-19 on Bali’s Economy

Tourism is an important facet of Bali’s economy. Before the pandemic, Bali welcomed over 6 million visitors per year. However, until the rates of COVID-19 in Bali had sufficiently lowered, tourists could not visit the island. While Bali’s travel ban intended to keep people safe, hunger in Bali grew due to this financial halt. Approximately 92,000 people who worked in the tourism industry were laid off during the pandemic, having little to no means of supporting their families. With this complete loss of income, many tourism employees turned to agricultural business to make ends meet, though workers would sometimes only get $4 a day, barely enough to purchase a single bucket of rice.

Development of Plastic Exchange

Vegan restaurant owner Made Janur Yasa saw the grueling circumstances of unemployed people in his home village of Ubud. He wanted to use and donate his services and resources as sustainably as possible to avoid creating more plastic waste in an already excessively polluted place. Yasa explained to CNN, “I got to thinking, inside the challenge, there is an opportunity.” Thus, the impetus and conception for Plastic Exchange or Plastic for Rice were born. Yasa’s initiative, Plastic Exchange, isn’t just a means of feeding families who couldn’t afford rice, though. It encourages participants to travel down to their local parks and beaches to collect plastic waste. Plastic Exchange upholds three core values: dignity, prosperity, and environment. The first value of dignity is a noteworthy cause, as it is important to sustain a sense of self-worth in individuals who suffered the economic effects of COVID-19 in Bali. Its second core value ties in nicely with the first since people cannot thrive in their environment unless their most fundamental needs are met. Lastly, the hands-on initiative towards alleviating Bali’s plastic waste problem teaches citizens the importance of caring for their planet, reiterating that sustainability is achievable in the direst of circumstances.

Plans for Plastic Exchange

According to a report from the Bali Tribune, in August of 2021, a Plastic Exchange initiative in a village called Saba collected two tons of plastic within a timeframe of two hours. The positive results from plastic exchange programs have inspired Indonesian villagers to embrace small-scale acts as catalysts for large-scale sustainable improvements. Not only is this exchange of plastic an excellent means of recycling — Yasa sends the plastic waste to the island of Java, with a tremendous amount of infrastructure — but it is also a means of stabilizing the island’s economy. Local rice farmers and planters receive a more consistent income again as islanders can afford larger rice supplies again, which also combats high hunger rates in Bali. With more than 500 tons of plastic collected, Yasa is eager to take his successful initiative and encourage its operation in other Indonesian villages and potentially other countries as well.

Conclusion

Plastic Exchange’s website opens with a sped-up count of how many Bali villages have participated in the program, how many kilograms of plastic were collected, and how many kilograms of rice were distributed. It is overwhelming in the best way possible. There is also a PayPal link to donate towards the cause. For example, a $50 donation can buy 50kg of rice that feeds 200 people per day. Ultimately, plastic exchanges are a promising solution to end hunger and plastic waste in Bali.

– Maia Nuñez
Photo: Flickr

The Impact of COVID-19 on Poverty in Cyprus

Impact of COVID-19 in CyprusSituated south of Turkey in the Mediterranean Sea, Cyprus is a small island with a population of 1.2 million, increasing modestly. Approximately 15.3% of the population is vulnerable to poverty or social exclusion — and given the impact of COVID-19 on poverty in Cyprus, this percentage is only rising.

Cyprus Before the Virus

Poverty existed in Cyprus before the COVID-19 pandemic. This is due in part to the country’s political divisions, which include the Northern Republic of Cyprus, a Turkish de facto state that has controlled one-third of the island since 1974, and the Southern Republic of Cyprus. With such a stark division, the Cypriot government has found it difficult to track its impoverished population and provide assistance where it is needed.

A recent survey found that in 2019, just one year before the advent of the pandemic, “194,400 Cyprus residents were living in households with disposable income below the at-risk-of-poverty line.” Cyprus’s ethnic division also accounts for this, in that dense Greek-Cypriot populations in the South have tight-knit familial relationships. If one person in these families falls into financial difficulty, they are likely to not have another stable family member to fall back on. This leaves unsupported people like immigrants, single mothers and the elderly most vulnerable to poverty.

Impact of COVID-19 on Poverty in Cyprus

As one of the most popular destinations in Europe, tourism is a vital component of Cyprus’s economy. Prior to COVID-19, Cyprus had three consecutive record years of tourist arrivals, topping 4 million annual tourists. International travel bans that were implemented in March 2020 stagnated the country’s economy and exacerbated the impact of COVID-19 on poverty in Cyprus. In that vein, domestic quarantine restrictions also halted the progression of potential reunification talks between Turkish-Cypriot President Ersin Tatar and Greek-Cypriot President Nicos Anastasiades.

Cyprus also saw a surge in unemployment rates at the height of the pandemic. According to the most recent data on Cyprus’s unemployment rate, unemployment rates were at a low of 6.3% in July 2019, but jumped to 10.2% a year later, just a year after the pandemic hit.

Taking Initiative: Caritas Cyprus

Despite these drawbacks, fellowships have been able to make a dent in combating the impact of COVID-19 on poverty in Cyprus. Organizations like Caritas Cyprus were among the first to do so.

Since its inception in 1986, Caritas Cyprus, a member of the Caritas Internationalis confederation, has worked at the grassroots level. It aims to end poverty, promote justice and restore dignity by “responding to humanitarian needs on the island with the aim of providing compassionate care and support to the poor, dispossessed and marginalized.”

Caritas Cyprus primarily works through local parish initiatives as well as cross-island programs that focus on migrants, local needs (diaconia) and youth engagement. The Migrant Sector typically affords support to hundreds of refugees, asylum seekers and migrants through the operation of two centers. In light of the COVID-19 pandemic and quarantine restrictions, these two centers weren’t able to operate at full capacity. Nonetheless, the organization still provided sufficient aid through its two other sectors.

The Diaconia Sector provided extensive relief for Cyprus’s unemployed population amid the pandemic. Job Search Program connected jobseekers with potential employers using networks within the community.

Following the relaxation of quarantine restrictions, the Youth Sector encouraged the country’s youth to participate in volunteering, fundraising, social events and other humanitarian efforts to raise awareness for groups that bore the brunt of the pandemic’s poverty.

Looking Ahead

As of October 2021, Cyprus has administered more than 1.1 million doses of COVID vaccines; assuming that every person requires two doses, that’s enough to have vaccinated nearly half of the country’s population. Though the impact of COVID-19 on poverty in Cyprus has posed an acute setback on the country’s economic progress, hope still exists that the country can recover. The rapid distribution of vaccines, assistance from organizations and potential reunification talks between Northern and Southern Cyprus can not only suppress the spread of COVID-19, but ultimately make headway in eradicating poverty.

– Tiffany Grapsas
Photo: Flickr

COVID-19, Poverty and The Debt Service Suspension Initiative (DSSI)

COVID-19, Poverty and The Debt Service Suspension Initiative (DSSI)
In the wake of its continuing devastation, Covid-19 has left, among other things, recessions across the world’s poorest countries. These recessions threaten to push more than 100 million people below the $1.90-a-day threshold that defines extreme poverty. To prevent poverty exacerbation, G20 countries have been called on by the World Bank and the International Monetary Fund to establish the Debt Service Suspension Initiative (DSSI). The initiative is designed to redirect funds planned for debt liquidation towards battling the pandemic and helping the most vulnerable populations.

How Does It Work?

Established in April 2020, the DSSI allows the suspension of government-to-government debt payments for 73 eligible countries. Over 60% of these countries accepted the offer as of 2021. The International Development Association and the U.N.’s respective lists of least developed countries encompass all countries cleared for suspension, minus Angola. Qualification for deferment also requires an application for an arrangement with the IMF, along with a commitment to use unfettered money towards social, health, or economic spending designed to remedy the effects of Covid-19.

Including interest and amortization payments, the total sovereign debt servicing payments in 2020 was projected to reach nearly $14 billion. Less than $4 billion of that belongs to the Paris Club group, prompting calls for other creditors like China and Russia to take part. Additionally, the G20 received requests to include entities such as banks and investment funds in the initiative, but this call has yet to receive a favorable response. About $5.7 billion in payments were deferred in 2020, with an additional deferment of $7.3 billion planned for June 2021.

The Unturned Stones

Reservations have been voiced regarding the ability of the temporary cessation of bilateral debt payments to provide adequate relief for the countries concerned. All debt is not the sovereign debt that is accounted for in the DSSI, and the fiscal ability of the approved countries is largely insufficient to weather the inclemency of Covid-19, even with debt deferment. At the vanguard of the call to private-sector creditors to adopt the initiative is the Institute of International Finance (IIF), a global association concerned with the finance industry.

Estimations from the IIF show that participation by private-sector creditors would provide an extra $13 billion in deferment. This would offer significant potential relief from the $35.3 billion owed collectively by the countries eligible for the DSSI. However, the IIF has made its concerns clear, particularly concerning the DSSI’s lack of consideration for the unique situation of each debtor country and the doubt that this causes for private-sector creditors.

The overall narrow eligibility scope of the DSSI has also been called into question. Middle-income countries have over eight times the amount of collective external debt outstanding compared to DSSI eligible countries. With $422.9 billion in debt payments in 2020 alone, these countries also run the risk of being financially incapable of dealing with Covid-19. After foreign investors pulled approximately $100 billion from middle-income countries’ markets in stocks and bonds, capital outflows leveled. The IIF, perhaps because of this observation, projected that the countries in question will encounter difficulties in borrowing money. The IIF also made projections that indicated unparalleled fiscal deficits in 2020.

Possible Solutions

Currently, no mechanism is in place to ensure that deferred debt payments will be used accordingly. One proposal involves the creation of a central credit facility (CCF) at the World Bank. This organization, if allowed, would require countries requesting relief to deposit deferred interest payments to certify that the funds would be used to negate the effects of the pandemic. Although the CCF has gained academic support and press recognition, whether countries will adopt it is uncertain.

Corporate or individual bankruptcy for countries is not an option.  The IMF attempted but failed to establish a sovereign resolution regime with its Sovereign Debt Restructuring Mechanism (SDRM) proposal in 2002, ultimately because of conflicting opinions on how to structure its design. A notable implementation of a debt moratorium occurred in 1931 by Herbert Hoover, then President of the United States. His declaration was followed by a rush of countries defaulting. Although these countries recovered faster than countries that did not default, such countries were hard-pressed to find any foreign lending for more than 20 years after defaulting.

Forging A Way Forward

While COVID-19 inflicted disastrous financial difficulties on nations worldwide, initiatives like the DSSI work to counteract the damage. In April 2021, G20 government-to-government creditors extended the DSSI for the final time by six months, taking its activity through December 2021. Despite concerns about its implementation and consequences, the DSSI represents a positive attempt by creditors nationwide to help the most vulnerable in the wake of COVID-19.

– Mohamed Makalou
Photo: Unsplash