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One Happy Island: The Expensive Cost of Living in Aruba

Aruba, known for their slogan, “One Happy Island,” is just one of four countries that make up the Kingdom of the Netherlands. It has been a desired tourist spot for vacationers due to its dry and reliably warm climate. Tourism dominates the economy with over one million tourists per year, mainly from the United States.

For an island as small as Aruba, 20 miles long by 6 miles wide, the cost of living in Aruba would seemingly be low. Yet, due to the size of the island, Aruba’s economy primarily depends on tourism as 30 percent of the island’s income, as well as aloe exports and petroleum refining.

In a July 2017 Aruba Economic of Affairs report, 2012 was said to have tourism receipts of 2,504.9 million Aruban Florin. This factor heavily affects the cost of living in Aruba.

In June 2017, $1 was equivalent to 1.79 Aruban Florin. Many businesses operate on the U.S. dollar instead of florins, especially in the resort district.

Compared to the U.S., rent prices are about 31 percent lower in Aruba, and restaurant prices are about 11 percent lower. While housing rent in and out of city centers tends to be significantly less than in the U.S., buying property tends to be more expensive. Costs such as utilities and income tax are often the most expensive part of the cost of living in Aruba.

Due to the poor soil quality and low rainfall, agriculture on the island is limited. This causes Aruba to have an increase in the import of groceries at a 5.75 percent increase over U.S. prices, due to its imports of milk, beef and fruits.

Aruba may rely on those imports to make up everyday grocery items, but the island is known to have the world’s third largest desalination plant. This allows Aruba to produce potable industrial water, makes the island independent from other sources and cuts the cost of bottled water.

Although tourism has been the main source of income for Aruba, imports and exports have continued to heavily influence the cost of living on the island. Aruba may heavily depend on its imports, but the government is making efforts to expand exports as well so as to balance trade and allow a balance in the cost of living as well.

– Stefanie Podosek

Photo: Flickr

Equatorial Guinea’s Poverty Rate Staggering Despite Country’s Wealth

Equatorial Guinea's Poverty Rate
Despite being one of Africa’s fastest-growing economies and a major producer of oil, Equatorial Guinea’s poverty rate is high due to institutional weaknesses and corruption that restrict the country’s ability to provide basic services to its people.

With a population of approximately one million people, Equatorial Guinea ranks 138 out of 188 countries in the Human Development Index for social and economic development, despite a per capita gross national income of $21,056 in 2014, the highest in Africa.

Oil has been a source of economic growth in Equatorial Guinea for the past five years, but due to corruption under President Teodoro Obiang Nguema Mbasogo, who uses oil revenues to fund the lifestyles of the elite, poverty persists. The government invests an imbalanced ratio between infrastructure and health and education.

While the African Union’s development model prioritizes spending on health and education, the government spends around $80 out of every $100 on infrastructure and only $2 to $3 each on health and education.

The African Union does not prioritize Equatorial Guinea in its efforts to eradicate poverty because of its oil wealth. However, nearly half of the country’s population lacks access to clean water. In 2011, 26% of children were malnourished, and one in four children did not receive vaccinations. In 2016, 42% of children were not registered in primary schools. Only half of children finish primary school, and less than 25% begin middle school.

In a recent Human Rights Watch interview, researcher Sarah Saadoun described the mismanagement and high-level corruption in Equatorial Guinea. Saadoun explained that the display of wealth by the president’s family and other officials next to such poverty shows a contrasting picture of a country’s poverty despite its obvious wealth.

“What we found—unequivocally—is that the government has violated its obligation to realize people’s right to health and education…and it is hampering the government’s ability to deliver education, health and clean water to Equatorial Guineans,” Saadoun stated.

Equatorial Guinea’s poverty rate cannot improve if the country does not tackle corruption from within and invest in its companies and resources and receive foreign investments. Unless new reserves are found, the country’s oil will run out by 2035. Equatorial Guinea can become prosperous through poverty reduction if it makes smart moves before an economic crisis ensues.

– Sarah Dunlap

Photo: Flickr

The Surprisingly Low Cost of Living in Costa Rica


With a small cost of living and a luxurious lifestyle to offer, Costa Rica is an ideal location for retirement, particularly for Americans. Not only is the scenery breathtaking, but the cost of living in Costa Rica is even more alluring.

Surprisingly enough, day-to-day living costs are much more affordable in Costa Rica than in both the U.S. and the U.K. At the end of 2016, the minimum monthly required income for a single person in Costa Rica was $1,500 to $2,000. A majority of retired couples succeed on as little as $2,000 to $3,000 per month.

Medicare costs in Costa Rica are very affordable. Most consider the medical care to be of exceptionally good quality, yet it comes at a low monthly cost that includes free services.

The monthly cost to rent a lavish condo in Costa Rica is a mere $500 to $900 dollars. In many other countries as well as most of the U.S., this amount will hardly cover a basic, low-quality apartment.

As far as services go, the cost of electricity is around $200 per month, high-speed internet lands at a small amount of $25 per month and there is a $200 monthly fee for hiring a full-time maid if a resident desires to have one.

Food costs are astoundingly low as well, with a dozen bananas costing a mere $0.42. Fresh bread loaves cost about $1.25, and a pound of tomatoes is only $0.35. For Americans, this amounts to a 45% savings for the average amount of purchased groceries.

The low cost of living in Costa Rica combined with the beautiful landscapes and relaxing beaches is enough to make it the perfect place to live or retire. In fact, Costa Rica often gets mentioned on lists of best places to retire for this very reason. Those who are looking to move and have no ties to their place of origin will find Costa Rica to be a very affordable and appealing option.

– Noel Mcdavid

Photo: Flickr

Cost of Living in the Dominican Republic

Cost of Living in the Dominican RepublicThe Dominican Republic is a nation with white sandy beaches, tropical fruit and happy people. However, while the cost of living in the Dominican Republic is relatively low, many of its citizens live in poverty.

The cost of living in the Dominican Republic is 32.74 percent lower than in the United States. Their currency is called the Dominican Peso. As of 2017, one Dominican Peso is equal to 0.021 United States Dollar. The cost of living in the Dominican Republic is thus relatively cheap compared to living in the United States.

For Dominicans who want to leave the Dominican Republic, challenges arise because the exchange rate is quite high. As for tourists, it is usually cheaper to vacation in the Dominican Republic because of the inflated value of their money.

The Dominican Republic has an incredibly high poverty rate. In fact, a third of the nation’s population lives on less than $1.25 a day, and more than 20 percent live in extreme poverty.

For the poor, it is extremely hard to escape the cycle of poverty. Though the tourism market provides some income, it is definitely not enough.

As for a middle-class Dominican, it is fairly inexpensive to live in the Dominican Republic. According to Numbeo, rent is about 70 percent lower in the Dominican Republic than in the United States. Regarding healthcare, it remains one of the cheapest systems in Latin America and the Caribbean.

Although the cost of living in the Dominican Republic is somewhat inexpensive, the nation also suffers from a high crime rate.

Much of the poverty is due to a lack of governmental organization. The Dominican Republic’s government focuses more on tourism and less on its citizens’ welfare. Even though the cost of living in the Dominican Republic is cheap, it can still be expensive for the poor.

– Francis Hurtado

Photo: Flickr

10 Facts About Trade in Iraq

10 Facts About Trade in Iraq
Present-day Iraq is located between the Persian Gulf and Iran in the Middle East. Its population of over 38 million is extremely involved in global trade, as a large portion of its GDP relies on imports and exports. Below are 10 facts about trade in Iraq.

  1. That “large portion” previously mentioned is about 50%–half of Iraq’s GDP comes from trade, making it the 48th largest export country in the world.
  2. Iraq is the 61st greatest importer in the world.
  3. Last year, Iraq had a positive trade balance of over 16 billion, meaning that the country exports far more than it imports.
  4. Iraq is the world’s second-largest oil reserve owner.
  5. Iraq’s main exports are crude petroleum at $47.7 billion, refined petroleum at $295 million, gold at $212 million, lubricating products at $90.4 million and tropical fruits at $62.3 million.
  6. The majority of Iraq’s imports are cars at $872 million, packaged medical materials at $671 million, rice at $671 million and raw iron bars at $542 million.
  7. Iraq exports the most materials to China, India, the United States, South Korea and Italy.
  8. The largest shipments of Iraq imports come from Turkey, China, the United States, South Korea and India.
  9. Declining stability since the origin of the Islamic State of Iraq and Syria (ISIS), as well as decreased oil prices internationally, has lowered Iraq’s economic efficiency in the past few years.
  10. In 2016, the United States’ trade deficit with Iraq was $4.7 billion. This means that, in relation to Iraq, the United States imports far more than it exports, and this number is increasing.

These 10 facts about trade in Iraq show that trade is an incredibly large aspect of the country’s economy that continues to grow and holds an international presence. While its outlook in the oil market seems bright, the economic fallout from the creation of ISIS is a cause of uncertainty for the nation’s economic future.

– Emily Trosclair

Photo: Flickr

Facts and Figures in Kenya

Facts and Figures in Kenya

Located on the coast of the Indian Ocean in East Africa, Kenya has a population of 46 million. The country is home to Nairobi, the safari capital of the world. Here are some important facts and figures in Kenya that can help governments and organizations to eradicate poverty:

  1. Diseases and conditions that cause the most death and disability in Kenya include HIV/AIDS, diarrheal diseases, lower respiratory infections, neonatal encephalopathy, neonatal perform birth, congenital defects, iron deficiency anemia, malaria, neglected tropical diseases (NTDs) and meningitis.  About 5.91% of adults living in the country have HIV/AIDS, which ranks Kenya thirteenth in the world for most diagnosed adults.
  2. The median age of the population in Kenya is 19.5, with 40.87% of the Kenyans aged under 14.
  3. The fertility rate is 3.14 children born per woman.  The maternal mortality rate is about 510 deaths per 100,000 live births. Kenya ranks thirtieth in the world for the highest maternal mortality rate. The infant mortality rate is about 38.3 deaths per 1,000 live births. Kenya ranks fiftieth in the world for the highest infant mortality rate.
  4. In 2015, the child mortality rate under five was 49 deaths per 1,000. This rate had significantly decreased since 1960 when the infant mortality under five was 199 per 1,000.  About 11% of children under five are underweight.
  5. From 2008 to 2012, UNICEF estimated primary school net enrollment for males to be 83.5% and for females 84.5%. Secondary school net enrollment for men was 51.6%, and for women, it was 48.4%. Primary school net attendance was measured at 72.4% for males and 75% for females. Secondary school net attendance was estimated at 39.5% of men and 41.6% for women.
  6. Life expectancy in Kenya is 64 years.
  7. About 82 percent of Kenyans have mobile phone subscriptions, and 45.6% have internet access.
  8. Approximately 63.2% of the population lives with improved drinking water.  This differs from urban to rural areas, where those living with improved drinking is 81.63% and 56.82% respectively.
  9. Roughly 30.1% of Kenyans live with improved sanitation facilities.  This rate is about the same in urban and rural areas, where the percentages are 31.2 and 29.7 respectively.
  10. The GDP of Kenya is $69 billion. The GDP per capita (PPP) in 2016 was $3,400.  The PPP has more than doubled since 1990.  The real growth rate is currently six percent. Top exports include tea, coffee, wheat and petroleum products.

Kenya has made incredible gains toward human prosperity over the years and has continued to strive to reach United Nations development goals. Like other countries, its goals include eradicating extreme poverty and hunger, achieving universal primary education, promoting gender equality.  The country also has the goals of empowering women, reducing child mortality, improving maternal health, combatting HIV/AIDS, malaria and other diseases.

On top of this, the country wants to ensure environmental stability and establish global partnerships for development. Analyzing and monitoring these facts and figures in Kenya can help the country to continue to improve lives.

– Francesca Montalto

Photo: Flickr

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Rwanda’s Economic Success Story


After the 1994 Rwandan genocide against the Tutsi that killed 800,000 people, Rwanda has developed as a nation, improving its economy and decreasing its poverty rates. Rwanda Vision 2020 seeks to bolster Rwanda’s economic success by investing in a knowledge-based society.

World Economic Forum calls Rwanda “one of the fastest growing economies in Central Africa.” The country increased its GDP growth to eight percent per year between 2001 and 2014. However, more than 60 percent of the population still lives on less than $1.25 a day.

Foreign assistance continues to expand Rwanda’s economy by investing in programs such as education, youth workforce development and the coffee sector. Rwanda benefited from foreign assistance since the genocide, with 30 to 40 percent of the nation’s budget coming from aid. The Rwandan government’s initiative, Rwanda Vision 2020, focuses on long-term goals to grow from an agricultural and subsistence economy to a diversified economy less dependent on foreign aid.

Struck by economic disadvantages, including high unemployment and fluctuating prices in coffee and tea exports, Rwanda hopes to transform into a middle-income country and knowledge-based society.

Rwanda Vision 2020 promotes macroeconomic stability and wealth creation to reduce dependency on aid and develop the private sector. The initiative will expand Rwanda’s domestic resource base and increase its exports and promote diversification in non-traditional exports.

Rwanda recognizes that it must improve education and health standards to provide an efficient and productive workforce. Entrepreneurship is crucial to Rwanda’s economic success. Instigating wealth, employment and educational services in sciences and technology will create a new class of entrepreneurs.

USAID partners with the Rwanda Education Board to enhance investments in training, teaching and materials to ensure that all children learn to read within their first years of schooling.

While Rwandan youth are challenged by poverty and social instability, they increase their chances for success through USAID’s programs for basic life skills and work training, which promote education and employment. As a result, over 20,000 youth are equipped with workforce skills, and over 60 percent of these youth gained new or better employment, including self-employment. More than 40 percent of the youth choose to pursue further schooling.

With a history of poverty, Rwanda’s economic success comes from embracing present challenges and adjusting its approach. Rwanda’s changing landscape promotes socio-economic stability and harnesses a new identity as it becomes a middle-income nation and knowledge-based society.

– Sarah Dunlap

Photo: Flickr

Reducing the Causes of Poverty in Iceland

Poverty in Iceland
Iceland, known for its breathtaking glaciers and stunning views of the Northern Lights, has an impressive quality of life. Additionally, citizens have long life expectancies due to extensive health care services. Most higher education is free, and the government’s welfare program aims to aid the unemployed, the disabled and young families. Despite these factors, over 6,000 out of 330,000 Icelanders live in extreme poverty. Many of the causes of poverty in Iceland stem from the 2008 recession.

When the economy crashed, almost all of the Icelandic businesses went under. The crash occurred when the banks collapsed, resulting from the banks owing immense debts to foreign countries and businesses.

After the recession in 2008, child poverty increased dramatically. Between 2008 and 2012, the number of children living in poverty nearly tripled. By the end of 2012, 31.6 percent of children in Iceland were living in poverty. According to UNICEF, this increase was the highest among rich countries.

In order to combat the rise in child poverty, Iceland replaced their flat taxation methods with a progressive form of taxation. The government also implemented policies that encouraged citizens to invest in businesses within the nation, improving economic growth.

While these efforts helped fight the causes of poverty in Iceland, tourism has jumpstarted the economy of Iceland and helped bring up employment rates. Last year, almost 2 million tourists came to visit Iceland and explore its beautiful attractions. This is partially a result of airlines offering cheap tickets from the United States to Iceland. Iceland has met this influx of tourists by increasing the number of attractions, restaurants and lodging opportunities to ensure a memorable trip.

The turn of events in Iceland can serve as a model for other countries. Tourism can help any country, but is particularly helpful for developing nations. The influx of money from tourists can benefit the extremely poor by creating jobs and providing them with the resources to pull themselves out of poverty.

While Iceland is still fighting to recover from the rapid increase in poverty from its economic crash, the implementation of policies and the dramatic rise in tourism has lifted Iceland out of the decline. By using tangible ways to fight the causes of poverty in Iceland, the number of people in deep poverty should drop within the next decade.

– Julia McCartney

Photo: Flickr

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Facts and Figures About Cuba

Facts and Figures About Cuba
A Caribbean island with Spanish as its official language, Cuba is a nation rich in tradition and culture. The United States has had a strained relationship with the country since the travel ban of 1962. However, learning about Cuba continues to provide incredible insight about how to strengthen diplomatic ties between the two countries. Here are 10 facts and figures about Cuba.

  1. Only 6.3 percent of the population lived below the poverty line in 1984, which is impressive for a nation with such limited resources.
  2. In 1986, nearly all school-aged children had enrolled in some form of schooling. By 1990, the country reached a 98 percent literacy rate.
  3. Fewer than five percent of Cubans can access the Internet. However, companies like Netflix and Google have made plans to incorporate their systems into the Cuban economy. Netflix made its services available to islanders in February of 2015.
  4. Although the official religion of Cuba is Roman-Catholicism, with 60 to 70 percent of individuals identifying as Roman Catholic, the island is home to great religious diversity. Approximately 5 percent of the population is Protestant, with most identifying as Baptists and Pentecostals. There are also 94,000 Jehovah’s Witnesses, 30,000 Seventh-Day Adventists and Methodists, 22,000 Anglicans, 15,000 Presbyterians, 300 Quakers, 50 Mormons and 1,500 Jews.
  5. The current population is around 11.2 million, making Cuba 107th on the list of global population density.
  6. Since 2011, 93.8 percent of Cubans have had access to improved drinking water sources, and 92.1 percent have had access to improved sanitation facilities. People living in urban areas largely have better resources than those in rural areas.
  7. Between 1990 and 2012, the under-5 mortality rate in Cuba decreased significantly. This rate was 13 percent in 1990 and is now about six percent.
  8. Cuba’s constitution lists healthcare as a fundamental human right. As a result, the government has implemented things like its vaccination program. The vaccination program began in 1962, and the nation maintains some of the lowest global rates of vaccine-preventable infectious disease.
  9. Cuba emphasizes women’s rights. It is ranked fourth in the world in terms of women in politics and approximately 43 percent of their parliament members identify as female. Women receive 18 weeks of maternity leave with full pay. They also have additional leave, with 60 percent pay for the first year of their children’s lives.
  10. Cuban cities are dedicated to sustainability efforts. As of 2010, for example, organic urban farms provided 100 percent of produce in Havana.

 

While these facts and figures about Cuba cannot fully encapsulate the country, they certainly paint a vivid picture of the exceptional nation that Cuba continues to be. A hub of diversity and human rights, Cuba’s recent successes support the claim that these things will continue improving in the future.

– Emily Chazen

Photo: Flickr

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10 Facts About Microloans

Facts About Microloans
Today’s world economy is dominated by big businesses and cut-throat hierarchies. Microlenders finance those who may be left out of the typical business model, such as underprivileged or under-qualified entrepreneurs, by giving them microloans.

There are numerous nonprofit microlenders that focus on helping aspiring businessmen and women enter the marketplace. Organizations such as Kiva, Zidisha, the Business Center for New Americans and Grameen America strive to provide clients with the loans they need in an educational and sustainable way.

 

Here are 10 Facts About Microloans.

 

  1. Microloans are typically for no more than $50,000, hence the prefix “micro.”
  2. Microloans allow new business owners to take care of startup expenses. It can be extremely difficult for entrepreneurs with little disposable income to receive funding to begin their projects, which is where microloans come in. Most microloans lay the groundwork that allows businesses to survive on their own. For example, an entrepreneur who is hoping to sell dairy products may need a small loan to purchase two cows. After making this purchase, the business owner may keep breeding the cows and selling their milk, becoming more and more financially independent and eventually repaying the creditors and turning a profit. In this case and many others, the initial loan is crucial to the entrepreneur’s eventual success.
  3. The requisites for obtaining a microloan are more attainable than those of a traditional loan. The process of choosing who receives microloans is generally more personal, according to the microlending nonprofit Accion. The organization states that “it’s about your character as a business person, not just your credit score.” Though traditional financial factors are considered, microlenders look at the whole picture.
  4. Nonprofit microlending organizations largely work to educate aspiring entrepreneurs in struggling communities or developing nations. In addition to helping with loans, these organizations aid in business training and often build strong relationships with their borrowers. This can help someone with little business background find footing in the small business world more easily. These microlenders tend to charge little to no interest, making them more accessible to more applicants.
  5. Different microlending organizations specialize in lending to different groups of people. For instance, Zidisha provides microloans to entrepreneurs in developing countries, whereas the Business Center for New Americans works specifically with refugees, immigrants and other marginalized Americans. Grameen America fights economic inequality by loaning to women stuck in systems of poverty.
  6. Some microloan organizations utilize crowdfunding. Kiva, for example, posts approved loan requests online. Supporters from all over the world can view vendor profiles and project descriptions and lend as little as $25 to each project. The vendors update their lenders as their businesses grow, providing evidence that lenders can use their economic privilege to help produce sustainable outcomes.
  7. To boost financial outreach and follow up on repayments, organizations like Kiva sometimes use field partners to facilitate transactions. These partners act as intermediaries between lenders and borrowers. A downside to these partner loans is that the partners may charge the borrowers interest. Kiva’s direct loans, on the other hand, are always interest-free.
  8. Microlenders must acknowledge that their loans will not always be repaid. Kiva recognizes that borrowers occasionally fail to move their businesses in lucrative directions and that repayments are not always possible. As a result, the goal for such an organization is that borrowers repay their lenders as much as possible, even if they cannot completely refund the original amount.
  9. Microlending preserves a sense of pride on the part of the borrower that donating does not always maintain. The recipients of microloans are not merely given their requested funds but rather enter partnerships with their creditors. They are responsible for what they do with the funds by the repayment system. Many organizations believe this is a more sustainable way to create economic change than donations.
  10. Microlending may seem small, but it can have community-wide effects. Microloans can have, as the Kiva website describes, a “ripple effect,” especially in developing communities. In whatever form they take, the loans generate empowerment and opportunities that can pervade the entirety of a borrower’s community.

Microloans are vital to the success of small business ventures around the globe, enabling businesses that would be ineligible to receive traditional loans to grow and thrive in the competitive market. These 10 facts about microloans show that anyone can be a microlender. Go to any of the previously mentioned organizations’ websites to learn more and make a difference in someone’s community today.

– Sabine Poux

Photo: Flickr