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Why Is Sri Lanka Poor?

Why Is Sri Lanka Poor
Sri Lanka has been suggested to be an early achiever of the Millennium Development Goals (MDGs) in various areas. From primary school enrollment to universal reproductive health service provisions, Sri Lanka has made significant strides to improve the living conditions of its people. Poverty in the country has fallen from 22.7% in 2002 to 6.1% in 2012. However, large pockets of poverty remain which begs the question, why is Sri Lanka Poor?

3 Reasons Why Sri Lanka is Poor

  1. Previous Conflict
    Sri Lanka has been torn by civil war since 1983. The war resulted from ethnic tensions between the Buddhist Sinhalese majority and the Hindu Tamil minority. Between 80,000 and 100,000 lives were lost during the conflict and hundreds of thousands of others were displaced. In 2009, the civil war ended but stable peace was not achieved. Approximately 370,000 citizens were still displaced in Sri Lanka in 2012 while other citizens lost property and witnessed fragmentation in their communities. One of the main pockets of poverty that remains in Sri Lanka is in the former conflict districts in the Northern Province. For instance, 28.8% of individuals in the Mullaitivu district live in poverty on $1.90 USD or less a day in 2011. While Sri Lanka has shown large improvement in its development in recent years, the development has been suggested to be non-inclusive and unequal. Vulnerable groups are excluded in the country’s development upsurge.
  2. Education Disparities
    The regional disparities in Sri Lanka are partially due to variations in productive earnings opportunities. In 2012/13, more than 85% of Sri Lanka’s poor lived and worked in the rural sector of the economy. Among the bottom 40%, the main cause of poverty is education quality. Schools in rural areas or in areas that were previously affected by conflict have difficulty attracting qualified teachers to educate their children. With hundreds of schools in the north and east regions of Sri Lanka still needing repair from the 30-year civil war, children are not provided the necessary facilities to obtain a quality education. Education expenditure in 2014 only accounted for 1.9% of the country’s GDP and was around 7.3% of the government’s budget that year. Sri Lanka has one of the lowest tax-to-GDP rates internationally, which undercuts the government’s ability to invest in education. Why is Sri Lanka poor? The country lacks the proper public investments necessary to improve the educational facilities of the country. Without proper educational facilities for the youth of Sri Lanka, the children will lack the necessary skills for economic progression.
  3. Climate Change
    While the issues previously mentioned can be solved through national policy, the issues of climate change can only be solved with international cooperation. The recent heavy rains and mudslides in Sri Lanka are examples of the serious implications of climate change for the living standards of the Sri Lankan poor. The recent extreme weather events have left nearly 2,000 homes destroyed and more than half a million people displaced. With stagnant floodwaters, the fear of increasing the Dengue Fever crisis has amplified. The poor are sensitive to the climate as they depend on natural resources for their livelihoods. In 2015, 28% of Sri Lankans were still employed in the agricultural sector. With climate change, the summer rainfall and winter monsoons are now unpredictable and affect the growing season of crops in the country. Why is Sri Lanka poor? The recent changes in the climate have reduced crop yields and crop growth in Sri Lanka due to heat intolerance and water evaporation. This reduces the economic returns to those in the agricultural sector, leading to lower incomes for the individuals affected by these environmental changes. On top of the reduced livelihood security, the frequency of droughts, floods and rising sea waters in Sri Lanka is displacing communities due to shelter damage. Additionally, the conditions lead to malnutrition and the increased incidence of infectious disease. Since the beginning of the year, 53,000 cases of Dengue Fever have been recorded. As severe floods persist, other diarrheal diseases such as malaria, Hepatitis and cholera are expected to spread. With high temperatures and poor hygiene for the poor of Sri Lanka, the climate conditions will lead to bacterial proliferation. This further reduces the living standards of the poor.

The three reasons provided above do not completely answer the question: Why is Sri Lanka Poor? However, the topics do uncover important challenges faced in Sri Lanka. The country has made many strides in recent years to improve the living conditions of its citizens. But more should be done to protect the population from the changing climate and to produce an inclusive economy for all its citizens.

– Tess Hinteregger

Photo: Flickr

 

 

Israeli-Palestinian Conflict is Affecting Israel Poverty Rates

Israel Poverty Rates
Resolving the Israeli-Palestinian conflict would not only deter violent radicalism and terrorism but also reduce Israel’s poverty rates by opening the door to prosperity and human rights for all citizens. Israel is densely populated with 8.5 million people, one-fifth of whom are Arab. While 14% of Jewish Israelis are poor, 55% of Arabs live below the poverty line.

The divide over Gaza is one of many issues plaguing the peace process in Israel. A 2008 airstrike on Gaza damaged many houses and buildings, displacing thousands of Palestinian families. Mostly populated by Palestinians, Gaza is currently under Israeli blockade, cutting off necessities such as electricity, food and medicine.

On average, Arabs make half of what Jewish workers make and are less likely to hold a job. The limited access to power and electricity in Gaza leaves a majority of the 600,000 families unemployed and hungry. Unemployment rates are at an all-time low in Israel. Yet, 70% of those working earn less than average salaries. On the bright side, Israel established a joint initiative with large companies to hire more Israeli-Arabs in 2016, opening better career opportunities to 500 Arabs.

Israel’s poverty rates are affecting future generations. One in three children lives below the poverty line, causing lifelong consequences to health, brain development, nutrition and educational attainment. While school years have increased over time, the quality of education is still low because teachers earn low wages.

So far, American-mediated efforts to help resolve the conflict failed because Israel continues expanding West Bank settlements, Palestinians remain politically divided, and the path to constructive dialogue between Israeli-Arabs and Israeli-Jews is unclear.

The lack of peace is increasing Israel’s poverty rates and an unstable economic situation in West Bank and Gaza. World Bank Country Director for West Bank and Gaza Marina Wes says that Gaza stands “on the verge of a human catastrophe.” All sides need to focus on relief combined with a commitment to financial support from the international community to bring about real changes.

– Jennifer Mcallister

Photo: Flickr

Five Things to Know About the Bahamas’ Poverty Rate

Bahamas Poverty Rate
The Bahamas is known for its natural beauty which attracts visitors from all over the world. Despite its vibrant tourism industry, this small tropical island faces a persistent battle against poverty. There are many important causes, implications and possible solutions to the economic difficulties faced by Bahamians. Here are some interesting facts about the Bahamas’ poverty rate:

  1. As of 2017, 14.8% of the country’s population lives below the poverty line. Not only is this higher than the average global poverty rate, but the number of people living in poverty continues to increase. Currently, it has grown by two percent since 2014.
  2. Immigration has a great impact on the Bahamas’ poverty rate. In fact, the majority of impoverished citizens are actually from Haiti. As of 2015, Haitians comprised about 7.48% of the population of the Bahamas, with 37.69% of these immigrants living in poverty. This statistic is primarily due to economic turmoil in Haiti, which forces many citizens to seek new opportunities in the Bahamas. This turmoil has created a higher demand for jobs and increased the amount of money the Bahamian government spends on preventing illegal immigration.
  3. The Bahamas’ poverty rate is mainly attributed to the country’s high level of unemployment. Currently, a shocking 14.4% of its citizens are unemployed, which is significantly greater than the 4.3% unemployment rate in the United States.
  4. This high rate of unemployment and subsequent poverty is often attributed to a lack of economic diversity in the Bahamas. Sixty percent of the country’s GDP stems from tourism, an industry that has weakened over recent years due to political turmoil, economic instability and high crime rates in the region.
  5. Another factor contributing to the Bahamas’ poverty rate is climate change. As weather patterns become more turbulent in the Bahamas, natural disasters continue to create a considerable economic strain on the country. This increase in harsh weather leaves citizens without property and resources. Combined with poor infrastructure, the growing intensity of flooding and tropical storms has forced the government to raise spending on disaster relief.

Despite these significant economic strains, strategic government planning and aid from foreign countries have the chance to positively impact the Bahamas’ poverty rate. In fact, in July 2017, the non-profit Organization for Responsible Governance created “Vision 2040,” a new plan for national development in the country.

In a similar fashion to the U.N.’s Sustainable Development Goals, this plan urges the government to address issues such as poor strategic planning, lack of financial accountability and country’s one-sector economy.

– Julia Morrison

Photo: Flickr

Top Three Causes of Poverty in Niger

Causes of Poverty in Niger
Ranked 167 out of 169 countries for the United Nations Humanitarian Development Index in 2010, Niger is one of the poorest and least developed countries in the world. Although the Nigerien government has made efforts to strengthen the economy by extracting gold, uranium and oil, Niger is still mostly dependent on agriculture. Causes of poverty in Niger include limited arable land, widespread illiteracy and agricultural vulnerability to climate shock.

An integral part of Niger’s culture is the hereditary system of distributing land. This system is not sustainable because the land becomes further divided with each generation. With less land and more mouths to feed, the hereditary system worsens the causes of poverty in Niger and further supports the need for educational reform in the country.

Less than one-third of Nigerien adults are literate. This can be attributed to the cycle of poverty formed in Nigerien homes. If the head of the household lacks a basic education, then the children in a family will most likely lack the same educational opportunities as their parents.

Poor access to schools as well as the responsibility to work the land instead of spending that invaluable time in school reinforces this cycle. Highly paradoxical in nature, this phenomenon lowers the chances of posterity for Nigeriens. They cannot attend school because they are forced to work to avoid starvation despite the fact that education would help to improve living conditions.

Given that most of Niger’s poverty is concentrated in rural areas, natural disasters and unpredictable climate patterns are especially threatening in areas such as Maradi and Dosso. Most of Niger’s crops are rain-fed and therefore are highly susceptible to severe droughts that are frequent in the area. This was evident during the 2010 drought that left 17% of Niger’s children acutely malnourished. Widespread malnutrition and starvation are the most striking signs and causes of poverty in Niger, especially considering children are often the most vulnerable during such food crises.

Plans for easing the toll poverty takes on Niger’s people are currently in place. By working with the U.N.’s Scaling up Nutrition program, the government is working to reduce malnutrition and starvation. However, accessibility to schools and lowering the rate of illiteracy must be at the forefront of the Nigerien government’s concerns if it is to ever reverse the causes of poverty in Niger.

– Kaitlin Hocker

Photo: Flickr

The Cost of Living in Ireland: Northern vs. The Republic


Ireland is an island that is split into two sections: Northern Ireland and the Republic of Ireland. Dublin is the capital of the Republic of Ireland, while Belfast is the capital of Northern Ireland, which is a part of the United Kingdom. These two sections have differences in not only currency (the pound in Northern Ireland, the euro in The Republic of Ireland), but in the cost of living in Ireland as well.

As of July 2017, the difference in currency comes out to 1.14 euros for every one British pound, which is considered a small difference. There are quite a few differences in the cost of buying everyday items in each part of the country as well. The cost of grocery items in Dublin is higher than in Belfast. The cost of alcohol, which includes wine and domestic and imported beer, is on average 42% higher in Dublin.

Although these two cities are about two hours apart, the Republic of Ireland is considered a more expensive city to live in.

The cost of living in Ireland is highly affected by tourism, commerce and currency exchange between the euro and the British pound. Since Northern Ireland is part of the United Kingdom, those countries also affect it as well, whereas the Republic of Ireland is independent.

Belfast’s economy was originally built on commerce, with Belfast Harbor flourishing by furthering trade in 1845. By the time the Titanic was built in 1912, it had become the largest shipyard in the world. Tourism also shapes Belfast’s economy; it is the second-most-visited city on the island.

Dublin thrives just as well as Belfast, if not more so, in tourism. In 2013, Dublin attracted 3.9 million overseas visitors, which generated 1.4 billion euros for the industry. Over 57% of the total number of international students studying in the country are located in Dublin, which also helps the economy.

According to Expatistan, as of July 2017, the cost of living in Belfast in 23 percent cheaper than Dublin. Consumer prices are listed at 29.65% higher in Dublin, with rent prices 151.10% higher in the city as well.

The cost of living in Ireland is even higher than the United States in consumer products, rent and restaurant prices, except groceries, which are 12.05% lower in the U.S. The U.S. does not have to import many grocery items, while Ireland does so quite often. Beer imports have also been greater in the United States, while Dublin is home to the Guinness Storehouse, and by beer production and tourism alone is there is a greater influx of money compared to breweries in the U.S.

Many factors influence these two capitals cities on the island of Ireland, such as commerce and tourism, and, for Belfast, the economy of the U.K.

– Stefanie Podosek

Photo: Flickr

Bringing Stability: The Top Causes of Poverty in South Sudan

Causes of Poverty in South Sudan
Ravaged by civil war for nearly 50 years, the once unified countries of Sudan and South Sudan were left devastated with dilapidated economies. The brutal civil war ensued when Sudan was freed from British control after being a colony for nearly 60 years. Poverty in the country is a multi-sided issue that is not simply defined by a statistic that reflects the number of citizens living at or below the poverty line. Literacy, health care and food security are all causes of poverty in South Sudan.

Seventy-three percent of adults are illiterate, including 84% of all women. Without access to educational resources, the people of South Sudan will continually live in a cycle of poverty. These illiteracy rates fuel the major unemployment situation. With an unemployment rate sitting at 12%, the lack of employed citizens continues to be one of the major causes of poverty in South Sudan.

South Sudan is a vast landlocked country but the population suffers from a lack of developed cities. Eighty-three percent of the 11 million people in South Sudan reside in rural areas without access to many basic necessities. Eighty percent of the population lives on or at $1 a day in part because they live away from cities. Without that access to employment and career resources, the South Sudanese are hindered from aiding their country and themselves.

Eradicating poverty requires a healthy and vaccinated population, something that South Sudan does not have. Lack of healthcare has been a cause of poverty in South Sudan and will continue to be until certain precautions are taken. With only 17% of children fully immunized, the population is severely disabled when it comes to combating diseases. This causes poverty, as a dilapidated population cannot sustain itself.

In addition, clean water has become a luxury when it should be treated as a necessity. Fifty-five percent of the population has access to safe water. This problem is consistent across much of Africa but South Sudan especially struggles. Thirty-eight percent of the population has to travel over 30 minutes to reach access to clean water.

The causes of poverty in South Sudan repressed growth and development in the third world country. The civil war the country endured set the stage for poverty. It will require aid and assistance to bring this country stability.

– Sophie Casimes

Photo: Flickr

How Mobile Money Transfers Help Migrant Workers

Mobile Money Transfers
One in seven people worldwide gets labeled as a migrant worker. Migrant workers are individuals who move from their home country to a different one for work purposes. These workers often face difficulty when it comes to sending money home to their families. They often have to take time-consuming or costly routes to accomplish this. With the help of mobile money transfers, migrant workers now have an easy and cost-efficient way to transfer their earnings.

Limited Storage Options

Before mobile transfers, workers had limited options on how to send their money home. They could take the money themselves, but this required them to take large amounts of time off work and spend money on transportation. Another method used was to send money home with a third-party. However, if there is no nearby agency, workers might end up relying on an unregulated corporation. Using these services can be costly and risky. Even worse is that companies can charge a high fee depending on the amount getting transferred.

Bank accounts are also unsuitable for migrant workers. Most migrant workers are employed in rural farm areas while banks operate in more populated places like cities or towns. Banks can also charge high fees that low-income workers cannot pay. In fact, 42% of the world’s farmers are unbanked.

Mobile money transfers provide an easy and quick way to send money home at a cheaper rate than previous systems. Money transfers can be done at any time of the day and take only seconds. Moreover, unlike banking apps, they are not limited to smartphones and can be done on any mobile device.

Xpress Money & TerraPay

Xpress Money is one money transferring company that recently partnered with TerraPay, a mobile payment switch. Originally used to send money directly through 200,000 agent locations in 165 different countries, Xpress now looks to expand with mobile transfers. TerraPay connects money transfer services with banks, payment card issuers and mobile wallet systems through its technological services. These services enable migrant workers across the world to send money home instantly.

By providing poor migrant workers with a safe, cheap and easy way to manage their money, they are getting introduced into the formal financial sector. Now, these migrants can begin to have savings and dictate where they wish to spend their money. Having control over their earnings can give these workers the capability and means to rise out of poverty.

– Hannah Kaiser

Photo: Flickr

A Quest for Solutions: The Current Level of Greece’s Poverty Rate

Greece's Poverty Rate
Once a holiday destination for millions looking to escape their usual fast-paced lifestyles, Greece has become ridden with protesters rather than sun-kissed tourists in recent years. With a poverty rate that has doubled since 2008, Greece has endured difficult times as a result of its recession. As of 2015, Greece’s poverty rate was sitting at 23.2%.

To put this statistic in perspective, the poorest country in the European Union (E.U.) currently has a poverty rate of 20%. The case of Greece is particularly intriguing as their poverty rate is only three percent higher than a country much poorer. This begs the question, what happened to Greece?

October 2009 sounded the alarm of a future of debt and recession for Greece, as it was discovered the government had been understating their deficit figures for years. Greece became the leper of the financial world as it was cut off from borrowing money and spiraled into bankruptcy around 2010.

A bailout of 240 billion euros from the International Monetary Fund, European Central Bank and the European Commission should have marked a turning point in the Greek economy, but rather than using the bailout to strengthen the economy, it was simply used to pay off existing debts. This led unemployment to skyrocket to 25%, creating an economy that has fallen a quarter in five years and heavily contributed to Greece’s poverty rate.

The years of 2008 to 2013 saw Greeks become 40% poorer. This decline has led to the rise in poverty and is a direct result of the high unemployment rate, particularly for Greece’s youth. Half of the citizens under 25 are unemployed. This age group suffers disproportionately more than others, which spells trouble for the economy and well-being of such a fragile country. Those under 25 are the future, and Greece’s poverty rate will continue to rise if they are unemployed and disadvantaged.

Two bailouts, a recession and a record-breaking poverty rate later, Greece has not been able pull itself from the worst financial crisis in its history. Nearly a decade later, Greece is still living in the nightmare that is bankruptcy and debt. There is hope for the future, but currently, Greece is looking for solutions.

– Sophie Casimes

Photo: Flickr

Addressing the Systemic Causes of Poverty in Argentina

Causes of Poverty in Argentina
The poverty crisis in Argentina is extreme. The government estimates more than a full third of the population is living below the poverty line, and 20% live on less than two dollars per day. Poverty in Argentina means that 11% of people are estimated to be unable to meet basic food needs, and the poverty crisis hits minority groups the hardest.

Those that live in the mountainous regions of the northwest have poverty rates of over 50%, and those residing in the rainforest regions of the northeast are even higher, at over 60%. Women and children are disproportionately affected as well, with poverty rates roughly twice that of the national average.

The causes of poverty in Argentina are systemic and deeply rooted in the history of the country. The late 1980s and early 90s marked when the Argentine economic system collapsed due to inflation rates of nearly 20,000%. No system has seemed to work properly since then, with severe economic recessions occurring in 2002 and 2016.

Inflation and Poverty in Argentina

Currently, inflation rates hover around 40 percent, which is one of the most significant causes of poverty in Argentina. Industries nationwide have been hobbled, and Argentinian exports have gotten reduced. Additionally, due to high inflation, both foreign investors and domestic consumers have little confidence in the potential of their purchasing power.

Despite the multitude of causes of poverty in Argentina, the country is far from without hope. Mauricio Macri, who got elected in 2015 as President, has staunched the flow of inflation and economic recession. He has eliminated many unnecessary government subsidies and tariffs, increased export revenue and unified the national exchange rate. This political change has led to increased production from the agricultural, real estate and construction sectors, as well as slowed inflation.

The struggle is far from over. With midterm elections approaching, Macri and his party recognize that the relatively minimal improvements may not be enough to allow his party to continue the good work they have begun. The deficit remains high, debt levels are rising and many of the worst affected people have yet to feel the end of the recession. There remains a great need for foreign investment and aid.  This support is necessary to both alleviate regions perennially affected by economic strife and to assist the country as a whole in raising itself to self-sufficiency.

– Connor Keowen

Photo: Flickr

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To End Poverty, Countries Must Prioritize SDGs and Cooperation

SDGs and Cooperation
This Monday, the U.N. Secretary-General Antonio Guterres called for the international community to step up efforts to meet the U.N.’s Sustainable Development Goals (SDGs). The Secretary-General stressed that many regions worldwide are lagging behind with their sustainable development efforts. Guterres warned that without a stronger commitment to the SDGs and cooperation, the world will not meet the 2030 SDG deadline.

What are the SDGs?

The U.N.’s Sustainable Development Goals are a set of 17 ambitious goals that, among other things, aim to end global poverty and encourage development in struggling regions. These goals were agreed upon in 2015 and implemented the following year, and are meant to be fulfilled by 2030.

Despite the admirable intent of the SDGs, they suffer from the same critical issue that stymies other U.N. projects: they lack enforcement. Because the national governments of each member state are responsible for the organization and implementation of programs, they can easily ignore their commitment to the goals. Even worse, the SDGs are not legally binding and therefore countries around the world have little to no reason to ensure their realization.

The SDGs have only been in action for a little over a year, yet Guterres’ call to action indicates that the relatively new program is already struggling. As of now, the SDGs are well-intentioned but inconsequential.

Perhaps countries around the world hesitate to contribute because they believe the SDGs are too ambitious and ask too much, too soon. However, their hesitation is not justified.

At the very least, ending global poverty (the first goal out of the 17) is indeed possible. Since 1990, the number of people living off of the equivalent of $1.25 a day has been reduced by more than half. While 836 million people still live below the poverty line, it is not at all impossible to end poverty once and for all in the next few decades. Even if it is difficult to determine whether or not this goal can be achieved by 2030, this should not discourage countries around the world from refusing to try.

The Necessity of Commitment

In order for the world to end global poverty and encourage universal development by or around 2030, the international community needs to prioritize SDGs and cooperation. They cannot write off the SDGs as another romantic notion proposed by the idealistic U.N.; instead, they should seriously think about the benefits they can reap from a better world in 2030. That better world can be theirs, but they need to work for it first. The SDGs provide the guidance to get there.

Also, the international community needs to facilitate cooperation in order to more effectively tackle global poverty and inequality. As Peter Thompson, President of the U.N. General Assembly expressed, there must be “effective collaboration and partnerships between governments, private sector, civil society, local authorities, schools, universities and our communities.”

Streamlining cooperation between the public and private sectors is particularly important for the development and execution of on the ground development solutions. In the US, the proposed Economic Growth and Development Act (HR 2747) hopes to allow more opportunities for the private sector to contribute to foreign assistance programs. If the bill receives enough support to become a law, it could bolster U.S. efforts in the fight against global poverty.

Hopefully, the Economic Growth and Development Act will become a part of the U.S.’s toolkit in ending global poverty. Other countries around the world should encourage similar legislation so that the international community can further promote the importance of SDGs and cooperation in creating a better world.

– Isidro Rafael Santa Maria
Photo: Flickr