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Causes of Poverty in Ireland Tied to Economic Boom and Bust

Causes of Poverty in Ireland
Despite its industrious, tech-based economy, Ireland is experiencing a national poverty epidemic. The developed country has an estimated total of 750,000 of its citizens living in poverty. The triggers behind the causes of poverty in Ireland stem from the nation’s 2008 recession. In addition, the majority of its citizens are dependent on government aid, and the growing wage gap between socioeconomic classes provides even more instability.

Ireland’s recession has had lasting effects on the welfare of the Irish people. Every year after the recession, Ireland’s poverty rate has consistently escalated. This has left many Irish citizens without the means to purchase basic goods and services, such as heat or clothing. Another reason why the recession is one of the most impactful causes of poverty in Ireland is due to the prior economic history of a rapidly increasing population during its economic heyday. Without the booming economy of the 1990s, Ireland now lacks the economic vitality to provide for its new wave of citizens.

Without social welfare, 50.7% of the Irish people would be at risk of poverty. This form of governmental aid is crucial in protecting Ireland’s most vulnerable, such as children, the elderly and the homeless. However, Ireland’s welfare programs have practically reached a breaking point. According to Fianna Fáil TD, the Irish Republican political party, “It’s an awful waste of taxpayers’ money… It’s not working.” While the social welfare system in Ireland has somewhat prevented the spread of poverty, it is necessary to lessen the heavy dependence on government aid. This will, in turn, reduce the financial burden on Ireland’s government.

The economic growth in Ireland has earned its place in several international markets while providing jobs, which have lessened the burden of social welfare. However, the unequal distribution of wealth that followed economic development continues to cause class division. Pro-poor growth strategies must address the widening wage gap before it becomes even more extreme.

Although these causes of poverty in Ireland will require years of effort, solutions for the economic crisis are already underway. According to the Irish Times, “The numbers at risk of poverty—those earning 60 percent of median incomes—fell from 16.5% in 2012 to 15.2% in 2013… Moves to protect core welfare rates and restore cuts may halt the growth of poverty and begin to reduce it.”

Additionally, the government is currently working on an improved plan of action to tackle poverty in Ireland. They plan to create equity in social welfare rates, introduce a Basic Income system and make tax credits refundable.

– Kaitlin Hocker

Photo: Flickr

Why is India Poor?

Why India Is Poor
India ranks as one of the largest countries in the world in both population and land area. Despite being a resource-rich region, India also ranks as the third poorest country in the world and is home to some of the most poverty-stricken communities on the planet. Here are five main answers to the question “why is India poor?”

  1. Health issues
    The Indian population is at high risk for infection and disease. Pollution, overpopulation, unsanitary living conditions and a very limited health system are major contributing factors. Many transmittable diseases that have been eliminated in high-income countries through vaccinations still exist in India. However, as in many countries, non-communicable diseases and mental illnesses are emerging as the largest health challenges. By 2030, it is estimated that non-communicable diseases and mental disorders alone will cost India $6.5 trillion.
  2. Inadequate infrastructure
    Lack of proper infrastructure is an enormous obstacle, particularly in rural areas. For many who don’t have access to clean, running water, there are devastating consequences: more than one-fifth of communicable diseases in India are contracted from unsafe water. More than 40% of food grown in India rots before reaching the market because transportation is inefficient and often unreliable. Such setbacks hinder growth and development.
  3. Education
    Two out of every three Indian employers report that they struggle to find and hire qualified workers, though India is home to more than 1.32 billion people. The disparity between educational opportunities available in India and those offered in high-income countries puts many Indians at a great disadvantage. Not only that, but more than 50% of women are illiterate, which reinforces gender inequality. The fact that such a large percentage of the population goes without education is why India is poor and also why many citizens struggle to compete in job markets.
  4. History of colonization
    As in many colonized countries, the presence of foreign invaders between the 18th and 20th centuries had crippling effects on the Indian economy and government, and is a large part of answering the question “why is India poor?” Britain initiated colonization in 1757 and remained a strong presence until independence in 1947. During this period, Indian populations experienced subjugation and discrimination. When the colonial power withdrew, India’s economy and government struggled to regain strength and true independence. The remnants of a difficult history are still evident. India continues to have issues dealing with government corruption and an unstable economy.
  5. Economy
    Inflation in India is high, hovering around eight to 10%. The recent increase in food prices has taken a significant toll on poor, rural populations. While the country’s economic growth remains significant, the growth rate is slowing. India sees more imports than exports annually. This deficit means the rupee is depreciating in value. Private debt is on the rise and there are very few financial safety nets for those struggling to repay, part of the reason why India is poor.

Why is India poor? These five challenges are certainly formidable obstacles for India as a lower-middle-income country, but there are many promising indicators that living standards will continue to improve. Thanks to technology, aid and the efforts of many organizations, the nation continues to see a significant reduction in poverty levels.

– Kailey Dubinsky

Photo: Pixabay

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Why Is Azerbaijan Poor?

Why Is Azerbaijan Poor
Though it is a higher middle-income country with a booming oil industry, Azerbaijan is overcome by poverty and corruption. Its emerging energy sector could change the economic landscape by answering the question: why is Azerbaijan poor?

Despite economic growth in recent years, 80 to 85 percent of Azerbaijan’s population makes low wages and lives in poor conditions. However, the upper class makes up only two to four percent of its population.

Agriculture is a major source of employment, as 48 percent of the population lives in rural areas. Unfortunately, agriculture only makes up 6.7 percent of the GDP. In Azerbaijan’s rural areas, people suffer from poor infrastructure and limited agricultural production. This is due to inadequate access to services and equipment and rising food prices. Farmers struggle to compete in domestic markets and develop beyond subsistence levels of production. The rising competition in products from increased foreign exchange in oil revenue and liberalization policies also limit agricultural output.

Azerbaijan hopes to promote social equity by creating a sustainable and thriving economy. According to a report submitted by Azerbaijan’s National Coordination Council for Sustainable Development July 3, poverty has already decreased from 49 percent in 2001 to 4.9 percent in 2015.

The International Institute for Sustainable Development and the United Nations Environment Program are discerning why is Azerbaijan poor by studying Azerbaijan’s challenges. The organizations conclude that for Azerbaijan to sustain a thriving economy, it should shift to a green economy. This will improve human wellbeing and reduce environmental risks and ecological scarcities.

Azerbaijan foresees introducing green economic strategies in agriculture in 2018 to continue economic development and reduce poverty. To grow its agricultural production, Azerbaijan must promote stronger supply chains; enhance public-private partnerships with agri-business; promote education and capacity building and enforce stronger regulation on agricultural inputs and outputs. Prioritizing the energy sector to protect soil and water quality is also crucial. Finally, increasing microfinance to benefit the poor in terms of jobs and livelihoods will help grow the economy.

Since agriculture is the main source of employment in Azerbaijan, developing the agriculture sector alongside the energy sector will help alleviate the country’s poverty. Creating progress in the most unfortunate areas improves not only the country’s economy but the individual lives within it.

– Sarah Dunlap

Photo: Flickr

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The War to Lower the Poverty Rate in China

Poverty Rate in China
Over the past several decades, China has made a remarkable effort to decrease its poverty rate. Consequently, the nation has seen an exponential decline. This marks a dramatic and obvious shift in the country’s efforts to eradicate poverty.

According to data from The World Bank, approximately 756 million people were living in poverty in China in the year 1990. At the time, the total population of the country was 1.14 billion. In 2013, this number has decreased to around 25 million, while the total population has increased to 1.36 billion. This marks a decrease in the poverty headcount ratio from 67 to about 2%.

The number of people living under the poverty line has thus decreased at a nearly improbable rate. Additionally, the pace at which the number is dropping is picking up.

According to Reuters, approximately 12 million people in China in 2016 moved above the poverty line through the investment of 230 billion yuan into anti-poverty efforts. This equates to $33.5 billion.

The Chinese government is using these funds in an attempt to completely eradicate poverty by 2020.

When examining the tremendous progress made by the Chinese in the fight against poverty, it is important to note that the primary method has been a higher issuance of loans.

By allowing people to take out loans that typically work as microloans, the Chinese government is giving impoverished Chinese citizens the opportunity to pursue continued education opportunities and create small businesses. These are two essential factors for a growing country.

Despite continued efforts to fight poverty, this remains a major issue. According to The China Daily Newspaper, approximately 43 million people are living below the poverty line of 2,300 yuan per year, which is equivalent to $335.

This number is slightly above the poverty line that the Chinese government acknowledges. Consequently, these people are not technically impoverished, despite being unable to sustain a decent life with an income of this level.

China should definitely be proud of its advances in lowering the poverty rate in China. However, it is important to remember that fighting poverty is a war that will require constant support and effort.

– Garrett Keyes

Photo: Flickr

Causes of Poverty in Venezuela, Once Latin America’s Richest Nation

Causes of Poverty in Venezuela
Despite housing the largest oil reserves in the world, Venezuela is experiencing crippling and widespread poverty. The causes of poverty in Venezuela are atypical from other developing countries. The nation has an abundance of natural resources, and, in the 1950s, it had the fourth-highest GDP per capita in the world. For much of its history, the country has occupied a coveted position as the strongest economy in Latin America. Despite frequent political instability–as recently as 2007 poverty was in decline, with the economy riding high off oil profits where the price of a barrel was in the triple digits.

Fast-forward to 2017: 81% of Venezuelans live below the poverty line, largely as a result of the economic collapse.

The most severe symptoms of the new Venezuelan economy are ones that make it difficult for the average citizen to simply exist, let alone thrive. Food is either scarce or astronomically expensive, and hospitals are chronically understaffed and have to endure subpar equipment. Schools are increasingly characterized by the need to feed children who arrive hungry and have brought nothing to eat.

The Washington Post describes the situation as an “entirely man-made disaster,” identifying Nicolás Maduro’s government as one of the primary causes of poverty in Venezuela. Corruption is endemic in Venezuelan politics and enormous oil profits are often siphoned off into private hands. Transparency International identifies Venezuela as the ninth most corrupt country in the world, by far the highest in the Latin America region.

Government intervention to address the crisis has also often backfired. An attempt to introduce price controls on foodstuffs led to imports disappearing almost entirely, and for months most Venezuelans were unable to acquire basic items such as milk, eggs and flour. Inflation is expected to rise to 475% in 2017. Over the course of the past year, the average Venezuelan has dropped 19 pounds in weight.

The spike in oil prices during better times allowed Maduro’s predecessor, Hugo Chavez, to implement an economic populist agenda. A combination of infrastructure investment and expansion of social services allowed millions of Venezuelans to be lifted above the poverty line. However, this model of poverty alleviation was flawed due to its dependence on a single resource. Following a decline in oil prices, the country now faces even greater challenges than before.

A major fiscal overhaul is the best bet for the millions of Venezuelans who urgently need access to food and medicine. A food-stamp style system for vital goods is currently only a proposal, but the enormity of Venezuela’s government and its subsidiaries means it could be distributed relatively easily across the country.

In the long term, a redirection of the economy away from oil towards privately owned farms could stimulate a self-sufficient food market. If this was achieved, the kind of shortages that plague Venezuela in 2017 would be unlikely to occur again.

Perhaps then, some of the current causes of poverty in Venezuela can be overcome and the nation can begin to rebuild towards its former status as one of the wealthiest in the world.

– Jonathan Riddick

Photo: Flickr

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Poverty Rate in Aruba

Poverty Rate in Aruba
Aruba, a small country in the South Caribbean Sea, has been regarded as a popular vacation spot where tourism continues to thrive. Accounting for 30% of the island’s income, the tourism industry has been on the rise since 1985. This industry has brought an increase in business to the hotel industry as well as construction and the food industry. Tourism has helped create a flourishing economy and contributed to the low poverty rate in Aruba.

These increases of industry have paved the way for an increase in jobs. This contributes to the low unemployment rate, 6.9% as of 2005. Aruba’s Gross Domestic Product (GDP) has been estimated at about $23,500 per capita in 2011, which is among the highest in Central and South America as well as the Caribbean.

The unemployment rate continues to be low due to an abundance of jobs and a stable economy, yet jobs still go unfulfilled. With a focus on tourism, the majority of jobs are concentrated in the tourism industry, whether it be in the hotel industry or otherwise.

Although public debt was recorded as 67% of the GDP in 2013, the inflation rate in 2016 was negative at about minus 0.8%. Like any island nation, Aruba exports only a fraction of what it imports. Partially due to tourism, the island maintains a steady economy, where 1.79 Aruban Florin has consistently been equivalent to $1 since 2012. With more than one million visitors to the island per year, the majority of businesses in tourist areas operate on the U.S. dollar.

Aruba’s tourism industry has continued to thrive in recent years. Increases in the tourism industry have created low unemployment and have contributed to the low poverty rate in Aruba. The tourism industry is expected to continue to prosper in Aruba due to the stable economy and exchange rate. Continued low rates of poverty can also be expected for the near future of Aruba.

– Stefanie Podosek

Photo: Flickr

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How Many Africans Live in Poverty?


Understanding how many Africans live in poverty means delving into the economic and social status of every country on the continent. As Africa’s population continues to grow at record rates, making it the second-most populous region in the world, so does the need to reduce poverty and truly understand how many Africans live in poverty.

Despite assumptions that poverty in Africa is worsening or stagnant, according to the United Nations, current estimates of poverty in Africa are actually lower than expected. The number of Africans considered impoverished fell from 56% in 1990 to 43% in 2012. Even with improved statistics, the proportions must also count the rapidly increasing population which averages about 2.6% growth each year. With this growth in mind, the percentages translate to roughly 330 million poor in 2012 compared to 280 million in 1990.

Africa has also improved in other areas, helping to alleviate how many Africans live in poverty. Intergenerational mobility in education and occupation has bettered across the continent but remains low. South African publication Daily Maverick reports that access to electricity and sanitized water in the region has dramatically increased.

Even with the various societal improvements toward becoming more developed, Africa still suffers from widening inequality. The Brookings Institute has found divergent trends in simultaneously expanding economies and growing numbers of people living on less than $1.25 a day. Seven of the 10 most unequal countries in the world are in Africa and most of them in southern Africa. However, excluding these select countries, inequality is not higher in Africa than elsewhere in the world. Some Africans are becoming wealthier, and others are becoming poorer. Differences between urban and rural areas across regions are large. Reducing how many Africans live in poverty is not an isolated solution, but one that must keep in mind economic inequality.

Those vulnerable to widespread inequality suffer the consequences. Twenty-eight of the poorest countries are in Africa. Without stable governments to ensure basic rights, 589 million sub-Saharan Africans live without electricity, and almost 40% of people in the world without access to safe drinking water live in Africa. Diseases such as malaria and HIV/AIDS result in premature deaths and orphaned young people without the resources available to escape the depths of poverty. However, there is a disconnect between the realities of poverty and the policymakers able to assist further with inequality in Africa.

How do people learn more about accurately defining how many Africans live in poverty and inequality? Through more frequent and widespread household surveys, the information gap between censuses must be shortened; the latest for some countries is at least three years old according to the United Nations. As quickly as the African landscape changes, accurate information about poverty in Africa is the catalyst necessary for advocacy and progress.

Africa is a mural dyed with many shades not fully encompassed in a single statistic. A piece of data cannot amplify the voices of those impoverished. But for those capable of communicating the reality of how many Africans live in poverty, a statistic can translate into action.

– Allie Knofczynski

Photo: Flickr

7 Things to Know About Costa Rica’s Poverty Rate

Costa Rica’s Poverty Rate
In 2016, Costa Rica was named the happiest country in the world. But, while the country as a whole has enjoyed stability and a steadily growing economy in recent years, marginalized groups have been left behind. Discussed below are key facts about Costa Rica’s poverty rate that should not be overlooked.

 

7 Leading Facts About Costa Rica’s Poverty Rate

 

  1. Costa Rica’s inequality rate has increased since 2000, a division that disproportionately affects indigenous and minority groups. Today, the country’s richest 20 percent receive an income 19 times higher than that of the poorest 20 percent.
  2. While, overall, Costa Rica’s poverty rate has dropped from 22.4 percent to 21.7 percent from 2014 to 2015, the country’s extreme poverty rate rose from 5.8 percent to 7.2 percent, the highest recorded rate in the last 60 years.
  3. While 19 percent of urban households live in poverty and 5.2 percent live in extreme poverty, 30.3 percent of rural households live in poverty and 10.6 percent in extreme poverty.
  4. Poor Costa Ricans have, on average, three years less schooling than their economically stable peers.
  5. In Costa Rica, 43.5 percent of poor households are headed by women.
  6. Since an inflation crisis in the ’80s and ’90s, the Costa Rican government has managed to boost the economy through international tourism and exports. These sectors benefit qualified workers, while unskilled workers, over-represented by indigenous and minority groups, see no change or a decrease in their salaries.
  7. Public assistance to poor families increased by 9.3 percent per household and 6.9 percent per person from 2014 to 2015.

Costa Rica’s poverty rate seems to be sewed up neatly on the surface, but the growth of a country doesn’t always reflect the growth of its people. The disparity of incomes and opportunities between uneducated people in rural areas versus educated people in urban areas threatens to rob Costa Rica of its good economic reputation.

– Sophie Nunnally

Photo: Flickr

Facts and Figures About Greece

Facts and Figures About GreeceGreece is a country in southeastern Europe about the size of Alabama. Among other things, the nation is known fo­­­­­r its beautiful beaches and remarkable history. However, these wonderful features can easily be overlooked in recent years as the nation has faced and continues to face severe economic challenges.

According to Trading Economics, as of April 2017, the nation’s unemployment rate sits at 21.7 percent. That means more than two million Greeks are out of work. This unemployment rate is a few points lower than that of the U.S. at the height of the Great Depression.

The harsh economic conditions that Greece is facing are nothing new. While there is no official start date, December 2009 was an early sign of what was to come. With concerns rising that the Greek government would fail to pay its large debt, the nation’s credit rating was downgraded by an influential rating agency.

In the summer of 2011, the leaders of the European Union decided to bail out Greece, but this did not solve the nation’s crippling economic problems. A few key facts and figures about Greece demonstrate that in the months and years following the €109 billion bailout, conditions continued their downward trajectory.

In April of 2013, youth unemployment was just under 60 percent. In February of 2014, overall unemployment had increased to 28 percent. These harsh economic realities have plagued the nation’s people. Material deprivation affects more than 22 percent of the population, according to Eurostat. In other words, more than one in five people in Greece simply cannot afford basic necessities.

As a result, organizations such as food banks are struggling to keep up with overwhelming demand. “We’re worried because we don’t know if we’ll be able to meet these people’s needs,” said Eleni Katsouli, a municipal offer at a food bank in Athens, to Reuters.

As the facts and figures about Greece indicate, the nation’s people are in need of help. Fortunately, people and organizations have stepped up. One organization making a particularly strong impact is Desmos.

According to its website, Desmos exists to respond to “the need to responsibly and effectively utilize the private initiative in addressing the humanitarian crisis” afflicting Greece. One program that the organization runs that demonstrates its impact is “Desmos for Schools.” This is the fourth year of the initiative. In 2017 alone it donated important items such as computers and sports equipment to 14 schools in Greece. More than 1,300 students will benefit from these efforts.

Charitable organizations such as Desmos are not the only reason for optimism in Greece. A sign of economic improvement showed in 2016 when the budget surplus exceeded expectations. This positive trajectory is predicted to continue as the nation’s GDP is projected to grow by more than 1 percent this year and more than 2 percent next year, according to the Organisation for Economic Co-operation and Development (OECD).

Positive facts and figures about Greece such as these are encouraging signs. If these projections hold true, Greece’s darkest days are likely behind it. However, a very large portion of the population is struggling with poverty right now and is in need of help.

– Adam Braunstein

Photo: Pixabay

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Debt Crisis Affects Human Rights in Puerto Rico

Human Rights in Puerto Rico

The human rights of Puerto Ricans have been radically affected as the U.S. government works with Commonwealth officials to manage and reduce the debt crisis in Puerto Rico. Essential public services including healthcare, education, social security and basic necessities of food and housing have been undermined as further spending cuts were made in an attempt to recover the economy.

After being in an economic recession for nearly a decade, Puerto Rico relinquished control of its finances after filing for bankruptcy in May 2017. The lack of protection under Chapter Nine bankruptcy leaves the government in Puerto Rico with fewer means to restructure debt. With their inalienable right to self-determination in jeopardy, citizens of Puerto Rico faced the opportunity to claim equal rights as U.S. citizens by voting for statehood, according to Governor Ricardo Rosselló. With only 23 percent of eligible voters casting ballots on June 11, the quest for financial relief and development remains in the hands of the U.S. Congress.

Puerto Rico is a U.S. territory with its own constitution and government. Island residents elect a governor and members to the island’s legislature, but they may not vote in the U.S. general election for president and they do not have a voting member of Congress. Becoming the fifty-first state would allow the island access to bankruptcy protection, although many still oppose statehood.

The financial crisis is also deteriorating human rights in Puerto Rico in terms of health care. Low-income citizens are currently only able to access healthcare through Affordable Care Act funds, which are nearly exhausted. With these funds running out, Puerto Rico could use all of its Medicaid funding, plunging the island into a health crisis, and putting healthcare for the poor and elderly in danger.

Among the 400,000 people who have left for the mainland since 2004 are doctors and physicians, primarily for economic opportunities. Puerto Rican residents have lower household incomes and higher child poverty rates than those living in the U.S. With an increasing number of hospital closures, Puerto Ricans are at risk of losing access to healthcare services.

The debt crisis has also shed light on discriminatory policies affecting human rights in Puerto Rico for people with disabilities. Puerto Ricans with disabilities are excluded from the federal Supplemental Security Income program (SSI), leaving them to rely on limited support. SSI provides American citizens with disabilities residing in the U.S. with $540 per month, while the federal Aid to the Aged, Blind, or Disabled Program can only provide Puerto Ricans with disabilities $74 per month.

Basic necessities such as the right to adequate food and housing are slipping out of financial reach in Puerto Rico. The cost of living on the island is high, with grocery products 21 percent higher than the U.S. average. According to the Bureau of Labor Statistics, the unemployment rate in Puerto Rico is 11 percent, and with 45 percent of residents below the line of poverty, adequate housing has become increasingly difficult to pay for.

Juan Pablo Bohoslavsky, an independent expert on the effects of foreign debt on human rights, said, “Schools are paying a significant amount of their funds to provide school children at least with one decent meal.” The right to education has been steadily declining in Puerto Rico, with 150 schools being closed and an anticipated 600 due to close within the next five years.

Whether the island becomes a state or a nation, one thing is clear: financial reform measures must ensure that human rights in Puerto Rico are protected.

– Jennifer Mcallister

Photo: Google