Two of the Main Causes of Poverty in Iran

With a population of more than 79 million people, Iran is a large country in Western Asia, bordered by Turkmenistan, Iraq, Afghanistan, Pakistan and Armenia. Sadly, of the millions of citizens in this country, 18.7 percent live below the poverty line. There are many causes of poverty in Iran, but two major causes have caused a crisis in the country during the last several years.

Unemployment
Iran’s economy began to struggle in 2014 when a subsidy program adjusted the prices of fuel, the country’s largest export. In 2015, the economy somewhat improved in the first half of the calendar year and the oil and fuel sector prospered. Meanwhile, unemployment in other job sectors increased. By 2016, the unemployment rate reached a three-year high of 12.7 percent, though labor participation increased from around 35 percent to about 40 percent since 2014. An unemployment gender gap was noted in 2016 as well, as unemployment rates for men and women were 21.8 and 10.4 percent respectively.

In 2014, however, Iran saw the height of the unemployment crisis when the rate of unemployed women was estimated to be 46 percent and youth unemployment was twice that of general unemployment.

Additionally, the standard monthly income for families averaging five people per household is about $600, which is considered significantly below the poverty line. In 2014, Parliament’s Plan and Budget Committee announced that 15 million Iranians were living below the poverty line, or 20 percent of the population, and seven million of those people did not have access to any services that might offer them support or assistance.

Internal Corruption
In 2014, news broke that a merchant with close ties to the Iranian government facilitated many oil and gold transactions through the Turkish People’s Bank and embezzled a significant amount of money, putting the country into serious debt. Later, many other fraudulent investors were reported to be active in the oil industry, and though over $1 billion in debt was reported, the guilty were not punished. Between 2013 and 2014, 4,000 cases of embezzlement and theft were reported, most of them being cases of illegally importing luxury cars, hidden monopolies and smuggling, to name a few, but no names of the guilty parties were ever disclosed.

In 2014, Iranian president Hassan Rouhani took office with the determination to develop an effective strategy to reduce poverty for Iranians. Rouhani established a three-part policy to assist the most vulnerable populations and curb inflation, which ended two years of negative growth. Officials under the Rouhani administration provided food aid to about seven million citizens in poverty. Though many aid projects under the administration were criticized for potentially adding to the budget deficit, such policies and programs seek to give immediate help to those living in absolute poverty, and the administration continues to fight for the poor and make food security its number one priority.

These causes of poverty in Iran have led to justified tension and fear among the public and the government that conditions and employment rates will deteriorate further if changes to the subsidy program do not go into effect, and if eliminating government corruption is not made a higher priority. Those changes are key to improving Iranian lives.

– Olivia Cyr

Photo: Flickr

Solutions to Reduce the Poverty Rate in St. Kitts and Nevis

St. Kitts and Nevis is not one of the poorest countries in the Caribbean. No exact statistics on the exact poverty rate in St. Kitts and Nevis exist, but it is clear that the country both has ongoing struggles and that solutions to many of its problems do exist.

One of the biggest contributing factors to the poverty rate in St. Kitts and Nevis is youth unemployment and underemployment. Some of the costs of this are hard to quantify, such as the feeling of self-esteem one gains from being employed.

Childhood education is free in St. Kitts and Nevis, but the additional costs associated with it can be prohibitive. Teachers in St. Kitts and Nevis have been known to hold antagonistic attitudes towards the poor. In many cases, impoverished parents of children have to work two or three jobs to provide for their families.

Health problems related to unhealthy lifestyles are widespread in St. Kitts and Nevis, such as obesity, hypertension and depression. This in turn puts a strain on the country’s healthcare system and economy.

It is not unheard of for citizens of St. Kitts and Nevis to procure healthcare and education abroad. In fact, many low-income families in the country are supported by migrants living abroad and sending money home.

Another contributor to the poverty rate in St. Kitts and Nevis is one that threatens all Caribbean nations: natural disasters, particularly hurricanes. The collapse of the sugar industry has led to soil erosion, a result of diverting runoff rainwater to sugar fields through pipes.

Alarmingly, violent crime, which can be both symptomatic of and contribute to poverty, has risen in the very recent past. There were 103 reported homicides in 2006-2010, compared to 42 from 2001-2005, a 160 percent increase.

Despite the obvious challenges that lay ahead, there are several steps being taken to reduce the poverty rate in St. Kitts and Nevis. The country is in the process of reforming the various antiquated departments that would be concerned with a rise in violent crime. Effective mobilization of resources to inform the public about bad health choices could make a huge difference. Currently, the government is investing in more training for medical professionals.

St. Kitts and Nevis faces a number of very real challenges in alleviating poverty. But most of these challenges have been identified and none are insurmountable. In the coming years, with proper action, the poverty rate in St. Kitts and Nevis can be reduced.

– Andrew Revord

Photo: Flickr

The Need for Sustainable Advancement in Developing Countries

More countries are becoming developed, according to the 2016 Human Development Report done by the U.N. Development program. People are living longer, there are more social service programs and more children are enrolled in school. There is still more progress to be made in developing countries but, more than ever before, more countries are making significant advancements. While developing countries start to industrialize, it is important to keep in mind the environmental costs caused by more emissions in the air. To cut down on emission levels, it is important to invest in sustainable advancement in developing countries, so their economies can still grow but they can cut down on pollution at the same time.

According to CAIT Climate Data Explorer, there are a few developing countries – including Indonesia, India and Brazil – that are on the list of top 10 highest emitters of greenhouse gases. Additionally, CAIT’s 2017 report analysis shows that all developing countries contribute 60 percent of global emissions. This means that developing countries are growing industrially, but it also means there is a more negative impact on the environment that comes with this growth. In compliance with the Paris Agreement, developed countries are initiating programs to be more sustainable, so it is important to invest in sustainable practices in developing countries as well.

Sustainable advancement in developing countries is not hard to achieve. For example, the Deep Decarbonization Pathways Project by ClimateWorks is a global collaboration program that identifies problems of carbon emissions and finds solutions, while still sustaining economic growth. Research done by the World Resource Institute shows that 21 countries have reduced their greenhouse gas emissions by using sustainable practices, while still maintaining economic growth.

Knowing how beneficial sustainability can be for economic growth as well as for the environment, the U.N. has adopted Sustainable Development Goals in 2015. These goals are aimed at increasing human prosperity by giving access to education and equal rights, but balancing this with sustainable practices that will protect our planet. By combating these two issues at once, programs such as the Sustainable Development Goals will help developing countries prosper.

– Deanna Wetmore

Photo: Flickr

Is Malaysia Poor?

Malaysia is a country located on the Malay Peninsula in southeast Asia. In 2016, it had a population of 31,187,265. In the same year, its GDP was $296.359 billion. Life expectancy went up by almost two years from 2002 to 2015, and it has a reputation for the massive strides it has made in poverty reduction due to its economic growth. The Commission on Growth and Development identified it as one of a few countries to experience more than 7 percent growth every year for more than 25 years. Its exports are varied, including electric parts, components and appliances, and palm oil and natural gas. By all accounts, Malaysia is prospering. So is Malaysia poor?

Is Malaysia Poor?
The national poverty headcount (which is the percentage of the population living below the poverty line) was 0.6 percent in 2014, down from 6 percent in 2002. However, migration from rural areas to urban areas has increased urban poverty, which has been exacerbated by crony capitalism and a rising cost of living.

Rural to Urban Migration
In recent decades, poverty was much higher in rural areas than in urban areas in Malaysia. As a result, the government’s poverty-reduction programs and policies were focused on rural poverty, neglecting urban poverty. During that same period, many people moved to cities from rural areas, including many foreign workers.

This rural to urban migration put pressure on urban infrastructure and essential services. Currently, 70 percent of Malaysians live in urban areas. Unemployment rose, and large families earning low wages now suffer from a lack of basic resources.

Corruption
Profiteering, rent-seeking and crony capitalism have all widened the income gap between the rich and poor in Malaysia’s cities. Big companies hold on to more of their profits, allocating less toward wages. In more “developed” countries, 50-60 percent of GDP typically goes toward employee wages. In Malaysia, only 33 percent of GDP goes toward wages. Low wages prevent families from saving for emergencies or healthcare costs.

In May 2016, the Crony Capitalism Index, which compares the billionaires’ wealth percentages against GDP, ranked Malaysia as number two, second only to Russia.

High Cost of Living
The cost of living in urban areas is significantly higher than in rural areas. On average, as of 2015 60 percent of Malaysians lived on approximately $1,600 a month. Looking solely at rural areas, the proportion rises to 85 percent who live on less than $1,600 a month. This skews the perception of poverty in rural areas relative to urban areas. But according to one Malaysian man, “In rural areas, the cost of living is cheaper and there is no shortage of housing. Food supplies can be supplemented by farming, growing your own vegetables and rearing chickens. But you can’t do that in flats in urban areas.”

Food prices have skyrocketed in Malaysia, and 94.6 percent of Malaysian households say that they spend more on food than anything else. Despite many years of economic growth, the per capita gross national income dropped from $10,440 in 2015 to $9,850 in 2016. As a result, Malaysians can experience poverty in urban areas even if they are technically earning an income above the poverty line.

Ethnic Disparities
Malaysia defines ethnic minorities broadly as “Other Bumiputera“, which encompasses communities such as the Orang Asli and all of the indigenous peoples living in the Sabah and Sarawak states. Poverty rates among “Other Bumiputera” are consistently much higher than ethnic-majority groups. For example, the poverty headcount in the Sabah state is 4 percent, more than 6 times higher than the national poverty headcount.

The Good News
So, is Malaysia poor? Like any country, a portion of its citizens are experiencing poverty, and that must be addressed. But it has made major strides in reducing poverty since the 1980s. Today, the government provides free primary and secondary education for all Malaysians, and healthcare is free in rural areas and very low cost in urban areas. In short, there is always room for improvement, but Malaysia is on the path to eliminating poverty.

– Olivia Bradley

Photo: Flickr

Is it Possible to Reduce the Sint Maarten Poverty Rate?

Sint Maarten is a country located in the Caribbean that shares a portion of the island it is located on with the French part of the island, known as Saint Martin. Although the island is a beautiful and popular destination spot for tourists, poverty is a problem for the citizens of Sint Maarten.

Poverty has created very dangerous problems for the small country, including issues such as crime, illiteracy and teenage pregnancy. Poverty is defined as “the total absence of opportunities, accompanied by lack of education, physical and mental ailments, social instability and unhappiness”. The Sint Maarten poverty rate has not quite reached a state of crisis, but there have been definite warning signs for the country.

The Sint Maarten poverty rate is an issue that has been present for the past few years. The Board of United Sint Maarten Party has said that “The increased crime rate wherein people are scared to carry out their daily routine, and are in constant fear of becoming victims of crime even in their very home, is evidence enough that the poverty exists on St. Maarten. Another example is when you visit certain communities and you find up to 6 persons living in a one-bedroom apartment with just the bare essentials to get by, that is poverty.”

According to Trinidad & Tobago MCO, the unemployment rate in Sint Maarten is 11 percent, the illiteracy rate is 4.1 percent, residents without a secondary school education is at 42.9 percent and 22 percent of households have no income.

Fortunately, the Sint Maarten poverty rate can be reduced. The country has been recovering from the recession of 2008-2009, and a positive economic growth is envisaged in the coming years. The economy is very open in Sint Maarten, meaning that developments in the external environment—mainly the U.S. economy— will directly affect the small island country’s economy in return. According to the Economic Outlook of Sint Maarten, the economy has a relatively good starting position for further expansion, and is also said to be able to absorb financial as well as economic setbacks better than other Caribbean countries. These factors will contribute to improving the Sint Maarten poverty rate.

– Sara Venusti

Photo: Flickr