The Top 10 Facts About Poverty in Pakistan

While Pakistan is one of the richest countries in Asia, poverty in Pakistan is a fact of life for most of its people. The main cause of Pakistan’s poverty rate is the fact that many Pakistanis lack basic human rights. Many Pakistanis, often women and children, are begging in the streets throughout their country. 

These are the top 10 facts about poverty in Pakistan:

1. In June 2016, the Ministry of Planning, Development and Reform reported that 39 percent of Pakistanis lived in multidimensional poverty. Pakistan’s official Multidimensional Poverty Index revealed that national poverty rates fell from 59 to 39 percent between 2004 to 2015. Additionally, poverty in Pakistan’s urban areas was 9.3 percent, a large contrast from the 54.6 percent in the country’s rural territories.
   
2. On Dec. 19, 2016, Pakistan signed an aid partnership program with Australia. The program is intended to reduce Pakistan’s poverty and enhance the country’s stability, reflecting Australia’s commitment to support Pakistan’s economic prosperity. Australia’s government is also providing AUD47 million in total development assistance to Pakistan.
3. Many Pakistanis live in poverty because the country’s wealth is often concentrated among a few rich families. The remainder of Pakistan’s impoverished citizens are dependent on the wealth of those families, resulting in 35 percent of Pakistanis living below the poverty line. Additionally, Pakistan’s corporations, landlords and wealthy entities pay less taxes, leaving Pakistan’s poor citizens to pay more taxes in their place. 
4. Poverty is the primary reason for Pakistan’s rate of child labor. Out of 40 million Pakistani children, 3.8 million work to support their families. Additionally, almost 11 million of those children work in factories under hazardous conditions. Child labor is still a large cause of poverty in Pakistan because while the country has passed many laws against child labor, those laws have often remained ignored. 
5. In February of 2017, Pakistan achieved a burgeoning middle class capable of fueling the country’s economic growth. Jamil Abbas, a Pakistani tailor of women’s clothing for 15 years, could finally afford private schooling for her two children. Other impoverished Pakistanis who rise to middle-class status are now able to afford a television, a refrigerator, a washing machine and have completed school up to the age of 16. 
6. Sixty percent of Pakistanis struggle to find food to eat. Pakistan’s women and children are the most affected by this type of poverty. On August 11, 2017, USAID’s Office of Food for Peace fact sheet revealed that $38 million was contributed to the U.N. World Food Programme for ongoing food aid to 1.6 million conflict-affected Pakistani households. 
7. In Nov. of 2017, the five-year Programme for Poverty Reduction (PPR) had given productive assets to 5,049 Pakistanis. PPR’s objective is to reduce the poverty of Pakistan’s marginalized communities. “We aim to do this by supporting the creation of sustainable conditions of social and economic development, including income and production capacity increase in programme areas,” said Dr. Santa Mole, the director of the Italian Agency for Development Cooperation.
8. On Nov. 11, 2017, the Local Government and Rural Development Department (LG&RDD) launched a $52.4 million project to reduce poverty in Balochistan, Pakistan. Funded by the European Union, the LG&RDD project will be implemented in Jhal Magsi, Kech, Khuzdar and other districts. The project’s main focus is to support the Balochistan government in reducing the impact of economic deprivation, poverty and social inequality. 
9. In Dec. of 2017, the Asian Development Bank (ADB) pipeline for 2018 to 2020 included a plan to offer $2 billion per year to Pakistan. ADB intends to work with the Central Asia Regional Cooperation (CAREC) to fulfill this goal. “By cooperating and working together with other CAREC member countries, Pakistan can better unlock its vast economic potential,” said Xiaohong Yang, ADB’s country director.
10. The circumstances described in these facts about poverty in Pakistan often lead to terrorism throughout the country. In Dec. of 2017, the China Pakistan Economic Corridor completed the construction of a northern Pakistan highway that will play a role in alleviating the country’s poverty. The highway will help eradicate rampant terrorism and provide cost-effective transportation to millions of Pakistanis in local towns and valleys.

USAID, LG&RDD and other entities will continue making efforts to financially help Pakistan’s impoverished citizens. However, the country’s divide between poor and rich citizens remains the main contributor to poverty in Pakistan. Further work will continue to ensure that all Pakistanis can live financially secure lives.

– Rhondjé Singh Tanwar

Photo: Flickr

Credit Access in Mali Needs Further Improvement

For many of the poor in developing nations, securing loans is often an unfeasible task. Reforms to credit access in Mali, however, are providing much-needed relief to smallholder farmers endeavoring to improve conditions for themselves and their families.

The Importance of Microfinance in Development

The practice of providing access to financial resources and small loans to those in developing nations, known as microfinance, has become the latest instrument in the effort to alleviate poverty. Too often, the world’s poor are denied access to loans, making it exceedingly difficult to start businesses or make capital investments that would enable them to improve productivity and elevate their incomes. Although microfinance across developing economies has yielded mixed results previously, the capacity remains for well-structured and pragmatically targeted initiatives to succeed.

Credit Access in Mali Denied

When these programs are successful, the implications can be powerful, especially for women and smallholder farmers. In developing economies, women reinvest 90 cents of each dollar they earn into “human resources” like healthcare, nutrition and education, according to a study conducted by the Harvard Business Review. This is substantially more than men and illustrates the impact small investment opportunities can have for the well-being of women and their families.

Despite this, securing loans is harder for women because most do not have property in their names to offer as collateral, typically make lending to them impractical. Furthermore, in Mali, 70 percent of loan applications sought by farmers are rejected because they are deemed risk-prohibitive. Because farmers’ incomes typically fluctuate with seasonal variance in agricultural output, banks are usually hesitant to provide financial backing.

Securing loans is also rare for farmers in Mali because banks focus primarily on commercial lending and often refuse the longer term loans many Malian farmers in the young mango, papaya and cashew nut industries need to get their businesses off the ground. Unstable political institutions in the country, like inconsistent enforcement of contracts, and poorly defined property rights further exacerbate these challenges.

Credit Where Credit is Due

An initiative which began in 2013 is addressing these issues and attempting to increase credit access in Mali. The Agricultural Competitiveness and Diversification Project by the World Bank seeks to “reduce the risk of investing in agricultural endeavors through technical assistance, new technology and greater knowledge of the supply chain and key actors,” according to World Bank Agribusiness Specialist Yeyande Kasse Sangho.

To provide loans, the program relies on the Innovation and Investment Fund (IIF) and the Guarantee Fund. The IIF offers a three-tiered lending system with each tier providing different levels of subsidies based on the size of the enterprise, with smaller enterprises receiving a greater subsidy. The Guarantee Fund, also financed by the World Bank, offers up to 50 percent of the loan guarantee, giving a needed cushion to the two commercial banks in Mali receiving the deposits.

In addition to this World Bank initiative, Mali sought in 2016 to improve access to credit by improving its credit information system regarding the regulations of credit bureaus in the West African Economic and Monetary Union. In 2017, it established another credit bureau, doubling-down on its resolve to ensure its citizens have access to capital.

With initiatives like these, Mali is demonstrating its commitment to making accessible credit the new normal for its people. Further improvement to credit access in Mali will only serve to assist in lifting more people out of poverty.

– Brendan Wade

Photo: Wikimedia Commons

Infrastructure in Micronesia Challenged by Climate Change

NASA has stated that the Earth’s carbon dioxide levels have risen dramatically since 1950, from 320 parts per million to more than 400 parts per million. This has caused many critical issues, including rising temperatures, melting glaciers, abnormal natural disasters and rising sea levels. This problem poses a great threat to every country on Earth. However, it is a particular danger for Micronesia, a country of 607 tiny islands that are on average one to five meters above sea level.

Climate Change-Related Natural Disasters

The EM-DAT International Disaster Database indicates that climate change-related natural disasters are predicted to increase and become more intense. Micronesia is especially vulnerable to these disasters due to its location and the fact that much of the infrastructure in Micronesia is located in close proximity to the coast, inducing infrastructural damage and putting many lives at a growing risk.

Rising Sea Levels

The islands of Micronesia are endangered by rising sea levels. A recent Journal of Coastal Conservation article stated that the sea level surrounding the island of Pohnpei is rising by 10 to 12 millimeters per year, a dramatic increase compared to the global average of 3.1 millimeters per year. Other islands such as Nahtik and Ros have already lost 70 and 60 percent of their landmass respectively.

Political Action

Micronesia has already taken steps to lead on climate change policy. In 2007, they ruled out the use of hydrofluorocarbons (HFCs), the fastest growing greenhouse gas, in refrigeration and cooling units. As a result, other countries followed in banning HFCs. The Climate Change Act was passed in 2009 to use the knowledge of climate change and predictions to prevent island damage. Amended in 2013, the act now requires the government to adhere to climate change policy when risk planning.

Infrastructural Response

With knowledge of Micronesia’s challenges, the department of geology and geophysics at the University of Hawaii has developed suggestions that will improve the durability and safety of infrastructure in Micronesia to ensure adaptation to rising sea levels and natural disasters. New roads should be built a meter taller in many of the islands, including Chuuk and Yap, to mitigate the rise in sea levels that will occur during the infrastructural project. To maintain these roads, they will be elevated a foot every 25 years. They suggest this is a cost-efficient way to improve roads in the midst of increasing sea levels.  

To prevent natural disaster damage, the University of Hawaii suggests that buffers should be built along the coast to increase elevation. Further, new drainage systems should be established to prevent flooding and road decay. The drainage systems should be built beneath the roads with a shutoff valve to avert marine incursion.

If this advice is adopted, the infrastructure in Micronesia will be better equipped to withstand the increasing climate change challenges that face them in the near future.

– Mary McCarthy

Photo: Flickr

The Many Forms of US Humanitarian Aid to Pakistan

On January 4, 2018, U.S. president Donald Trump’s administration announced that it would cut military aid to Pakistan on the grounds that Pakistan has not been doing enough to combat the more than 14 terrorist organizations operating within its borders. Many of these organizations support international terrorist operations and carry out attacks within the borders of Pakistan.

The United States is concerned with the operations being carried out against its forces in Afghanistan, which borders Pakistan. The mountainous border is porous and is a haven for terrorists. Some regions are officially governed by the Pakistani government but under the de facto control of the terrorists. North and South Waziristan are the most contested territories.

The Pakistan government recently launched a military operation in North Waziristan to liberate the area from the terrorist organizations that controlled it. The continuing success of this operation could hinge on the possible $900 million cut in military and security aid from the United States. However, the Trump administration has made it clear that the cuts would not affect U.S. humanitarian aid to Pakistan.

The United States has been aiding Pakistan for many decades, with a focus on humanitarian aid and economic development. In the 1960s and 1970s, economic aid helped to build two major hydroelectric dams. During the 1980s and the early 1990s, the United States helped to build a large power station and Lahore University for Management Science. These are only a few examples of early and continued non-military aid to Pakistan.

Currently, most of the U.S. humanitarian aid to Pakistan is delivered by USAID. According to USAID, more than $7.7 billion has been spent on non-military aid to Pakistan. The United States government has budgeted $344.5 million in humanitarian aid to Pakistan for 2018. USAID projects in Pakistan focus on six major areas: energy, economic and agricultural growth, democratic and societal resilience, education and gender equality. Examples of USAID work in these areas are:

• Energy
  USAID energy projects have been successful because they are multifaceted. Not only do they increase the power output of the existing infrastructure, the funds also help repair it. The most important projects are the repairs of the hydroelectric dams. Repairing these dams increases their electrical output and increases the efficient use of water from rivers and reservoirs.
• Economic and Agricultural Growth
  Agriculture contributes to 24.7 percent of Pakistan’s GDP. Up to 40 percent of the working population is employed by the agricultural sector. USAID has helped improve the agricultural sector by helping small and medium farms gain access to financing. They have also introduced new crops or modified versions of existing crops. A similar approach is used to help the private sector.
• Reliance
  USAID has worked hard to increase access to common markets, education and government in an attempt to solidify social engagement. They have also worked to rebuild areas destroyed by internal conflict and help displaced families. Helping society function smoothly helps people feel that they are part of something bigger and are not being left behind. This helps to stabilize the fragile democratic government of Pakistan.
• Education
  USAID has provided more than 18,000 scholarships for higher education over the last eight years, built or repaired over 1,300 schools since 2011 and increased the quality of basic education across the country.
• Health
  U.S. humanitarian aid to Pakistan has helped to build two new hospitals in the last five years. USAID projects have helped over 9.4 million women and children. Working with the government of Pakistan, USAID plans to increase funding for women’s and children’s healthcare through 2025.
• Gender Equality
  USAID has helped form a registration of 496,000 women to promote voting rights, awarded 6,000 college scholarships to women and improve the care and representation of gender-based violence.

U.S. humanitarian aid to Pakistan has been effective. Over the last three years, the country’s GDP has grown by an average of 4.6 percent and 2017 saw a 5 percent industrial growth rate. Other social issues such as gender equality will take much more time to show major results. The most important milestone came in 2013, when Mahmoon Hussain was elected president of Pakistan and Asif Ali Zardari stepped down. The role of the president of Pakistan is mostly ceremonial; however, this was the first time that a democratically elected president served a full term in Pakistan. Hopefully, with time Pakistan will begin to transition and will be seen as a pillar of stability and peace in the region rather than a place of instability and violence.

– Nick DeMarco

Photo: Flickr

Sustainable Agriculture in Rwanda Needs Improvement

Agriculture is a key sector of the Rwandan economy and has been growing in the post-genocide reconstruction era. Over 50 percent of the total surface of the country, approximately 1.4 million hectares, is arable land.

Traditionally though, Rwanda has focused on subsistence agriculture. It is one of the Vision 2020 goals for the sector to adapt and grow, moving from a focus on subsistence to a focus on commercial production. This industry growth will also increase household incomes and reduce poverty by up to 50 percent in the next two decades.

Barriers to Growth

For the agricultural sector to grow to its full potential, it must be sustainable. However, there are currently many barriers to sustainable agriculture in Rwanda. These include soil erosion, population pressure and water pollution.

Crops such as cassava are grown all across Rwanda but are more likely to lead to soil erosion. This is exacerbated by frequent field turnover, meaning fields are not left fallow to replenish their nutrients in favor of using them immediately. This yields immediate crops but is not sustainable.

The land has also been degraded by population pressures in both rural and urban areas. More farmers are vying for arable land than the small country of Rwanda can handle. In addition, the fertilizers that some farmers use to protect and extend their crop yields are polluting the country’s water.

Sustainable Solutions

There are many solutions and initiatives that are promoting sustainable agriculture in Rwanda. Sustainable land use management is a key pillar of the Vision 2020 goals. In the Umutara region, a One Cow per Family program has been successful in improving income and nutrition for families by producing and selling milk, but also in providing manure that enhances crop production. In addition, limiting the number of cows per family has reduced overgrazing in the region.

The issue of soil nutrient replacement is being tackled by the government, which has paired with the private sector to subsidize and distribute fertilizer to farmers. It remains to be seen, however, how this increase in the use of fertilizer will impact pollution. The government also promotes techniques such as terracing, which makes more efficient use of the hilly landscape, agroforestry, zero-grazing zones and better irrigation systems to expand the arable land and improve sustainability.

Financing Sustainable Agriculture in Rwanda

Sustainable initiatives cost money, which is a barrier in itself in Rwanda. As a result, outside organizations have stepped in to help finance sustainable agriculture in Rwanda.

The Environmental Resources Management Foundation provided a grant through the Africa Development Promise to a support a women’s cooperative in the Bugesera district. The women were subsistence farmers and were suffering from very low crop yields. The grant paid for the installation of a greenhouse with a year-round irrigation system.

Furthermore, the Food and Agriculture Organization (FAO) of the United Nations provides assistance in Rwanda centered on four areas: improving food security and nutrition, sustainably managing resources to increase productivity, private sector investment and collaboration/knowledge sharing.

Finally, the Urwego Opportunity Bank is a Rwandan bank that issues both individual and cooperative loans to farmers. It evaluates the needs of the farmers so it does not issue loans above the amount needed, and it requires proof of the contract with buyers to purchase the harvest. Then it issues loans tailored to farmers’ needs. These loans have financed maize, rice and potato cultivation, cow and milk machine acquisition and transportation to local markets.

As Rwanda’s economy continues to grow, the key may be agriculture, and the key to leveraging agriculture is sustainability. Continued efforts toward improving sustainable agriculture in Rwanda are sure to lead to further economic development in the African nation.

– Olivia Bradley

Photo: Flickr