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The Role of CBI in Poverty Eradication in Dominica

Poverty Eradication in Dominica
In a significant step towards poverty eradication, the Caribbean country of Dominica is using the funds it garnered through a program called Citizenship by Investment (CBI) in order to become the world’s first climate-resilient nation. This effort would both prepare the island for the future while addressing poverty in the present. Dominica’s poverty rate is 39%, higher than that of neighboring countries, due in large part to its economy’s reliance on banana exports, an industry that extreme weather events increasingly impact. In the wake of Hurricane Maria in 2017, the government committed to the construction of affordable, weather-resistant housing that strengthens the social safety net, the expansion of its health care infrastructure and the support of its jobs program, all with CBI funding. Here are seven facts about CBI and poverty eradication in Dominica.

7 Facts About CBI and Poverty Eradication in Dominica

  1. CBI: International Investment, Local Impact: CBI issues citizenship in exchange for monetary investment. According to the Financial Times, Dominica’s CBI program is the best in the world. It is relatively affordable at $100,000, efficient due to Dominica’s experience in administering the program and has a commitment to integrity, thoroughly vetting the source of every cent that goes to the country. Recipients enjoy the business and travel opportunities that having a second citizenship affords them while the issuing country is able to invest the revenue at the local level. Though the program has been in place in Dominica since 1993, it has only recently become the primary source of the climate-resilient investments that are helping to progress poverty eradication in Dominica. This shift in focus follows the devastation of Hurricane Maria in 2017.
  2. The Storm that Changed the Face of the Island. Hurricane Maria made landfall in Dominica, aptly known as “The Nature Island,” on Sept. 18, 2017. Winds reaching up to 160 mph battered the island, triggering landslides, destroying infrastructure, washing away crops and either razing or damaging an estimated 90% of homes, left tens of thousands of people without a roof over their head. The prime minister of Dominica, Roosevelt Skerrit, took to Facebook to announce that the hurricane blew his own roof off his residence in an effort to draw attention to the crisis as it was still ongoing. When the storm abated, the government endeavored to put the CBI funds, and the people of Dominica, back to work.
  3. The Housing Revolution. In September 2018, one year following Hurricane Maria, Dominica partnered with the Montreal Management Consultants Establishment (MMCE) to build homes across the island. As of September 2020, this initiative, known as “Housing Revolution,” has built over 1,000 affordable, weather-resistant homes, with plans to ultimately construct a total of 5,000 of these units. CBI funds support the program entirely.
  4. An Emphasis on Community. The nascent neighborhoods include commercial centers, sports fields and farmers’ markets, a reflection of the Housing Revolution’s commitment to fostering communities, not simply constructing houses. To that end, the CBI-sponsored Trafalgar Community Centre, which opened in August 2020, features a sickbay, an events space, clinic and a dining and activity hall. The government heralds the Centre as “a place where at-risk youths can receive help, neighbors can socialize with each other and anyone can receive educational classes and participate in recreational activities.”
  5. Health Care: Prior to Hurricane Maria, the Dominican health care system centered on its four national hospitals. Care was specialized and reactive rather than general and preventative. After Maria’s devastation forced every sector to re-examine priorities, the Ministry decided to use CBI funds to strengthen its primary care system. In addition to a state-of-the-art hospital, Dominica is building 12 new primary health centers that will emphasize community-based care. Further, CBI funds subsidized the complex medical treatment abroad for 16 Dominican children.
  6. Jobs: The National Employment Program (NEP), which helps young people secure internships, jobs and develop vocational skills, has stayed afloat during the COVID-19 pandemic due in large part to the CBI. The NEP has provided support to 4,500 businesses and 3,896 interns.
  7. Economic Growth. An Economic Commission for Latin America and the Caribbean (ECLAC) report indicated that Dominica is the fastest growing economy in the region, its GDP up 9% in 2019. One can attribute this growth to both the CBI program and the rise in ecotourism as world travelers seek out Earth’s most rugged, unspoiled gems.

Looking Ahead

The rise in GDP is an indicator of the country’s economic upside, but one will soon be able to see whether it will correlate with the eradication of poverty in Dominica. The country is still rebuilding and the people are still getting back on their feet. If poverty rates do tick down over the coming years, then the investment of CBI funds into community-based, climate-resilient infrastructure and jobs could serve as a blueprint for other developing countries as they work to lift their people from poverty while investing in their future.

– Greg Fortier
Photo: Flickr

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Poverty in Paraguay

Poverty in Paraguay
The landlocked country of Paraguay, located in south-central South America, currently faces strict rule and political turbulence. These recent troubles contribute to the long history of poverty in Paraguay. Since the 1860s, the country has participated in three different major wars in South America. It also experienced a civil war in the 1940s, which gave the Paraguayan people a strong sense of fear and unwillingness to express themselves freely. This sentiment has only recently begun to diminish in the early 21st century.

Background

The citizens and inhabitants of Paraguay are less diverse and more ethnically homogenous than in other South American countries. Most are of European and Guarani descent. Rivers are very important to the country’s economy as these water sources support the function of many hydroelectric power plants. Paraguay is one of the best producers of soybeans and many parts of the country flourish where fertile soil allows for diverse diets and high standards of living.

While the country is making great strides in the 21st century in its efforts to combat poverty, economic distress continues to stand as a major issue. Leading up to the year 2017, Paraguay actually noted an increase in poverty rates. Even though the country performed better economically overall, the total poverty rate that year rose from 26.6% to 28.8%. Even extreme poverty, which is defined as living on less than $1.90 a day, increased in this period.

These numbers are tragic because it shows a reversal in the steady decline of poverty rates in Paraguay in the years prior to 2016. To put this into perspective, in the five years prior, the poverty rate declined from 31.37% to 26.58%. This sudden worsening was unexpected as the South American region was collectively making progress in the fight against poverty. However, things have changed since then and poverty in Paraguay is showing signs of improvement.

Path to Progress

Some think that changes in poverty in Paraguay are the result of the government shifting its focus to extreme poverty. People in extreme poverty may not have the most basic necessities, such as food, shelter, sanitation and medical services. The minister of technical planning, Jose Molinas, confirms that there is a goal of reducing the extreme poverty rate to 3%. However, there is no goal to address the total poverty rate, leaving some impoverished people neglected.

Alicia Bárcena, the executive secretary of the U.N. Economic Commission for Latin America and the Caribbean (ECLAC), states that a lack of investment, extensive divisions in class structure and limited productivity gains are threatening the region’s ability to reach the poverty reduction goals agreed upon by U.N. members in 2015. Perhaps by addressing these issues, then, and by giving attention and care to the total poverty rate as opposed to only extreme poverty rates, the country can see a decline in poverty rates.

In fact, progress is already visible, with the poverty rate reducing from 24.2% to 23.5% between 2018 and 2019. This is due in part to the ongoing support from other countries and aid organizations.

In 2019, the Australian Embassy initiated the Direct Aid Program (DAP). DAP provides small grants for more than 80 countries worldwide, including Paraguay, funding non-governmental organization initiatives to aid these countries. It supports endeavors like providing education for the youth, including vocational and sex education. Other initiatives include promoting the economic development of women to achieve gender equity as well as infrastructure projects for Indigenous peoples. One such initiative, Poverty Spotlight, helped 30,000 Paraguayan families leave poverty through higher income generation. Continued support of programs and initiatives like these will help maintain the country’s progress and gradually eradicate poverty in Paraguay.

– Fahad Saad
Photo: Flickr

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Hunger Crisis in Latin America and the Caribbean

Hunger Crisis in Latin America
Latin American countries and the Caribbean are on the verge of confronting the deadly combination of the COVID-19 pandemic and a hunger crisis. The Economic Commission for Latin America and the Caribbean (ECLAC) and the Food and Agriculture Organization of the United Nations (FAO) report that an estimated 83.4 million people will live in extreme poverty in 2020, potentially leading to a hunger crisis in Latin America and the Caribbean. This number will be 16 million more people than in the previous year. Latin America and the Caribbean’s seven years of slow growth could experience a historic drop in regional GDP (-5.2%).

Ways to Prevent a Hunger Crisis in Latin American and the Caribbean

As part of an initiative, ECLAC and FAO suggest 10 measures to prevent a hunger crisis in both Latin America and the Caribbean. They are as follows:

  • Provide an anti-hunger grant which could take the form of cash transfers, food baskets or vouchers to the entire population living in extreme poverty for a six-month period. It would amount to an estimated cost of $23.5 billion.
  • Support school-based food programs for children and adolescents.
  • Support local and global humanitarian organizations like Action Against Hunger and World Food Program.
  • Financially support agricultural companies with credit and subsidies.
  • Enforce sanitary and health protocols for food production, transportation and food markets.
  • Expand and ensure the functioning of programs to support local production.
  • Support artisanal fishermen and family farmers who contribute a large portion of food in national markets with funding, technical assistance and access to inputs and labor.
  • Maintain and add agile mechanisms for consultation and public-private interaction within all aspects of the food system (production, supply, distribution and access to food).
  • Prevent wholesale and retail markets and agro-industries from closing or reducing their operations.
  • Continue with policies that until now have kept the world food trade open.

Food Prices and Imports

As food systems weaken and unemployment increases, domestic food prices rise and people resort to purchasing cheaper, less nutritional options. The most vulnerable populations are the Small Island Developing States (SIDS) of the Caribbean, the Dry Corridor in Central America, Haiti and Venezuela.

The Caribbean depends heavily on food imports from the United States and the United Kingdom. The area is also at high risk of supply chain disruption and impacts from hurricane season. The ports in the Dominican Republic did not reopen until a month after Hurricane Maria, a category 5 storm, devastated the island in 2017. Anticipating the season in 2020, organizations are subject to balancing the impacts of storms and maintaining measures against COVID-19.

Challenges in Tourism

The pandemic has also placed a strain on tourism in the Caribbean islands as travelers from all around the world had to cancel their trips due to government-issued orders. The Bahamas alone generates 75% to 80% of its GDP from tourism. These small island economies that often find themselves at odds against natural disasters face a decline in tourism by 60% to 70% between April and December.

The Situation with Remittances

Mexico and Central America face high extreme poverty, and undernourishment, especially among decreases in remittances. El Salvador, Guatemala and Honduras are small countries with economies that rely on remittances. In 2016, the remittances that Salvadoreans received amounted to about 17% of the country’s GDP. During the worst of the pandemic, those countries suffered the most as people lost jobs globally, especially the U.S. where people send most remittances from. These countries are also at risk of border closures during the pandemic which is an obstacle for imports and exports.

Poverty and Food Insecurity

South America has a high proportion of poor, indigenous farming families who are already at a disadvantage from COVID-19, lacking proper treatment and medical equipment. In Peru, the country with the fifth-highest number of coronavirus cases, millions are struggling with food security. About 20% of the population lived in poverty and survived through informal employment before the pandemic. Now struggling to find work and afford food, many are going days without food or relying on “community pots” for food.

The global pandemic and hunger crisis in Latin America and the Caribbean could have serious implications if ignored. With a widespread hunger crisis, the world could experience “increased social unrest and protests, a rise in migration, deepening conflict and widespread under-nutrition,” said the U.N. World Food Program’s executive director, David Beasley.

 Understanding the severity of this situation, it is imperative to pass legislation aimed at protecting the International Affairs Budget and increase international funding in the next emergency supplemental. With no end to the COVID-19 pandemic in the near future, the most vulnerable populations need guaranteed access to food.

The ECLAC and FAO’s initiative and their 10 measures are crucial points in preventing a hunger crisis in Latin America and the Caribbean. The pandemic may have set these nations back, but the fight is not over. In fact, 83.4 million people are at risk and their future depends on these measures.

– Johana Vazquez
Photo: Flickr

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Hunger in Ecuador during the COVID-19 Pandemic

Hunger in Ecuador during the COVID-19 pandemicEcuador is a mostly Spanish-speaking nation in South America with a population of about 17 million people. Despite its recent successes in decreasing poverty levels, parts of Ecuador still struggle with the effects of low-income living. One of the country’s greatest challenges is malnutrition, especially during the COVID-19 pandemic. Fortunately, there are ways to reduce hunger in Ecuador in the time of the coronavirus. 

Present-day Challenges

Since the enactment of a lockdown, hunger in Ecuador is increasing for many reasons. Namely, the price of domestic food products has increased due to the shortage of goods being grown and produced. Therefore, access to adequate food supply has decreased. As a result, many Ecuadorians lack food security and are struggling to adhere to healthy diets. People with disabilities face additional challenges. They can receive emergency food vouchers provided by the government, but the vouchers do not last more than a few days. The vouchers are also not being provided to over 20% of the population with disabilities. Many Ecuadorians with disabilities and Ecuadorians in general, continue working despite the risk of contracting COVID-19 because that is their only form of income. Those who are unable to work face starvation.

Additionally, a report by the Economic Commission for Latin America and the Caribbean (ECLAC) details concerns about hunger in Ecuador and other Latin American countries in relation to the pandemic. Major concerns for these countries include increased unemployment rates, which could negatively impact families that already struggle with food insecurity. Additionally, these unemployment rates are predicted to force 16 million of all Latin Americans into extreme poverty. Those who were able to afford nutritious meals before the pandemic will have to resort to less nutritious food: if they are able to find food at all. Alicia Bárcena, ECLAC’s executive secretary, worries that the pandemic will cause a food crisis if interventions aren’t implemented quickly and successfully. 

The Good News

Despite COVID-19’s significant impact on hunger in Ecuador, there is some positive news regarding overall poverty in Ecuador. Although Ecuador is a hotspot for natural disasters, which can destroy crops, the World Food Programme (WFP) works with the Ecuadorian government to prepare citizens for natural disasters before they happen. Specifically, Ecuador’s Secretariat of Risk Management and National Decentralized Risk Management System work with the WFP to calculate how natural disasters have affected food supply so they can learn from past crises. Vulnerable Ecuadorians can attend workshops to learn about emergency preparedness and how to protect their crops. The workshops also provide training sessions about better eating habits on a low budget. With these calculations and workshops, Ecuador can be more prepared for the next crisis. 

Another hunger-relief organization is Banco de Alimento Diakonía, a food bank that works solely to reduce hunger in Ecuador. Its slogan is “Barrigas contentas, corazones llenos,” which translates to “Happy bellies, full hearts.” The food bank’s threefold mission is to reduce hunger, improve nutrition and decrease food waste; the food bank accepts donations in the forms of money and non-perishable foods. Since 2015, Banco de Alimento Diakonía has been a certified member of the Global FoodBanking Network, and it has helped an estimated 16,200 people get access to nutritious food. Fortunately, the food bank is continuing to provide aid during the COVID-19 pandemic.

Looking Forward

The COVID-19 pandemic has changed economies and ways of life in every country around the globe. It will undoubtedly have long-lasting effects on poverty, such as the prevalence of hunger in Ecuador. However, citizens and governments can be more prepared for the next time a crisis comes along. With food banks, workshops and the right preparations, nations like Ecuador can recover from disasters and emerge with new tools to overcome the next challenge.  

 

– Levi Reyes
Photo: Unsplash

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Cause for Economic Optimism in Latin America

Latin_America
According to the U.N., poverty-reduction in Latin America has hit a snag.

The U.N. Economic Commission for Latin America and the Caribbean, or ECLAC, recently put out an annual report, showing that 28 percent of the region’s population was living in poverty in 2014. Of those 167 million people, 12 percent were living in extreme poverty.

Economic growth in Latin America has slowed recently. The region registered 1.1 percent growth in 2014—its smallest growth rate since 2009. Alicia Barcena, head of the ECLAC, blamed ineffective policy for much of the region’s woes.

“It seems the recovery from the international financial crisis was not taken advantage of sufficiently to strengthen social protection policies that reduce vulnerability from economic cycles,” said Barcena.

ECLAC has called on regional governments to put mechanisms in place that would improve the region’s resilience in the face of global economic downturns.

“Now, in a scenario of a possible reduction in available fiscal resources, more efforts are needed to fortify these policies, establishing solid foundations with the aim of fulfilling the commitments of the post-2015 development agenda,” said Barcena.

While the regional poverty rate has stagnated, some countries, such as Paraguay (from 49.6 percent in 2011 to 40.7 percent in 2013) and Chile (10.9 percent to 7.8 percent), have made significant progress in reducing their poverty rates. Peru (25.8 percent to 23.9 percent), Colombia (32.9 percent to 30.7 percent) and El Salvador (45.3 percent to 40.9 percent) also made positive progress.

ECLAC’s latest report also showed that while the income-based poverty rate has languished in recent years, multidimensional poverty has indeed fallen significantly since 2005.

According to the report, the percentage of the Latin American population living in multidimensional poverty dropped from 39 percent in 2005 to 28 percent in 2012.

Despite the current state of relative economic stagnation, preliminary ECLAC projections for 2015 suggest that there is cause for optimism, forecasting a 2.2 percent regional increase.

The ECLAC’s Third Summit of the Community of Latin American and Caribbean States will be held in Costa Rica, January 28-29.

– Parker Carroll

Sources: Andina, El Universal, Mercopress, Reuters, Telesur 1, Telesur 2,
Photo: Huffington Post