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Causes of Poverty in Luxembourg

Causes of Poverty in LuxembourgLuxembourg boasts one of the highest standards of living globally, with the world’s highest per capita income of $46,591 per person. However, with one in five citizens living under the threat of poverty and social exclusion, even one of the world’s richest countries cannot escape poverty.

In Luxembourg, most people live comfortably. Since 2009, the employment rate has increased by more than 16 percent but the current unemployment rate is only 5.9 percent – well below the European average of 10.4 percent. Generous social benefits and laws condemning discrimination against women, ethnic minorities and disabled people further improve the overall quality of life in Luxembourg.

Despite these promising conditions, poverty is still an issue in Luxembourg. In 2013, the threshold for the risk of poverty amounted to approximately €1,665. During that year, about 15.9 percent of people living in the country found themselves in that category – of this group, 23.9 percent were children.

An article written by Gornick and Jantti identified Luxembourg as a high income country with disproportionately high child poverty. In the study, they found that children in Luxembourg were 20 percent more likely to be poor than the overall population.

One of the main causes of poverty in Luxembourg is having lived in poverty before. The risk of remaining poor or becoming poor for those who have previously lived in poverty is about 70 percent. On the other hand, those who have had no prior experience with poverty only face a four percent risk of entering poverty. Consequently, 60 percent of the level of state dependence is made up of those who have previously experienced poverty.

The Luxembourg Chamber of Employees identified another one of the causes of poverty in Luxembourg. They analyzed the relationship between the risk of poverty and cost of housing and found that nearly one third of tenants faced the risk of poverty. In other European countries, such as France and Germany, this risk is much lower.

One way that the Luxembourg government attempts to fight poverty and social exclusion is through the minimum guaranteed income (MGI). The MGI is given to people or households who fall below a certain threshold and its main goal is to provide sufficient means of existence and opportunities for social and professional inclusion.

Efforts such as the MGI are critical steps to improving poverty in Luxembourg. While many live comfortably and the country is prosperous in several ways, still more must be done to assist those in poverty and to lower the unnaturally high proportion of children in poverty.

– Lauren Mcbride

Photo: Flickr

Why the Poverty Rate in Tunisia Is Still High

Poverty Rate in Tunisia
Tunisia proved the authority of its democracy when 2010 uprisings overthrew a decade-long dictatorship. That same year, the World Bank found that the poverty rate in Tunisia had been cut in half since the start of the century. Tunisia’s GDP has doubled as it approaches 10 years since that revolution, but rural areas are still stuck in a rut of poverty.

Most economic growth is localized to coastal, urban communities. The agricultural sector only contributes 10 percent to the overall GDP, but 35 percent of the country’s population competes for that small percentage. The result is that two-thirds of the country’s poor population lives in rural, agrarian areas.

Still, Tunisia is considered a success story and role model for other countries fighting poverty. The government implemented programs to improve the national status of education, healthcare and infrastructure after the new democracy took hold in 2011, and the aggregate influence was tangible. But the disparity remains, and the poverty rate in Tunisia is as much as 30 percent higher in some rural regions.

 

The Devastating Effects of the Poverty Rate in Tunisia

 

In hard to access areas, potable water and electricity are only available to 65 percent of people. This leaves nearly half of the poor population without water or electricity. The number of women receiving prenatal care is 35 percent lower in rural areas, and infant mortality rates are significantly higher. The Tunisian government has made basic healthcare accessible to all people, regardless of income, so the adverse statistics seem to represent a different problem.

Literacy rates (a strong indicator of poverty) are just above 98 percent for males between 15-24, and near 96 percent for females of the same age across Tunisia. These are promising figures, just like the overall improvement in poverty rate in Tunisia, but again there is a disparity in rural areas. Dropout rates for primary education remain at about 50 percent for the whole country, disproportionately attributed to children in poverty, and especially to girls in rural areas. The statistical stagnancy represents a social emphasis on patriarchy rather than education, and it is more and more clear that one father’s agrarian income can no longer support a family.

Tunisia’s battle against poverty shows that change begins with people. The poverty rate in Tunisia will continue to improve as the people continue to seek self-sufficiency. The civilian uprising that created their new democracy was an inspiration to similar countries, and hope remains that societal examples within that new democracy will make education and health a greater priority in rural areas.

– Brooke Clayton

Photo: Google

Causes of Poverty in Uruguay

Causes of Poverty in Uruguay

In recent years, Uruguay has been lauded as a success story in economic progress and poverty reduction. According to the World Bank, which has played an enormous role in supporting the Uruguayan economy in the past decade, poverty in Uruguay has decreased from 11.6% in 2020 to 10.6% in 2021.

Extreme poverty has nearly been eradicated, but poverty still exists in this Latin American country. The causes of poverty in Uruguay can be summarized in three major categories: lack of education for young children, the rapidly modernizing rural sector and discrepancies in economic status between men and women.

Most Vulnerable Population in Uruguay

A large majority of the impoverished population in Uruguay is made up of women and children. Children aged less than 15 make up a large percentage of the most impoverished sector. Further, rural families who fall in the poorest 20% of the population tend to have the largest number of children. This inverse relationship between family size and economic status contributes to the lack of nourishment and education available to the children in these families. Research performed by the Economic Commission for Latin America and the Caribbean revealed extreme learning deficiencies in children at the lower end of the socioeconomic spectrum.

The modernization of the rural sector has also played a large role in perpetuating the high level of poverty in the more rural regions of Uruguay. As rural production work is streamlined with the rise and availability of new technologies, those employed by rural producers are being forced out of work. While the more urban areas of Uruguay remain positively impacted by modernization, the number of rural workers who are finding themselves unemployed due to modernization is also on the rise.

In both rural and urban areas of the country, women make up a large proportion of the workforce. In fact, at 45.7%, Uruguayan women have one of the highest participation rates in the labor industry in all of Latin America. Still, the discrepancy in wages between men and women is enormous and one of the main causes of poverty in Uruguay. With Uruguayan women earning about 67% of men’s income on average, it is no wonder that women fall into the most impoverished sector far more often than men.

Women also continue to fulfill traditional obligations in the home, allowing them less mobility and less time to work for pay. As a result, single-mother households make up a large part of the poverty sector in Uruguay. There is certainly still much work to be done in restructuring agribusiness, education and wage disparity between men and women if the causes of poverty in Uruguay are to be addressed in the coming years. However, the progress that Uruguay has experienced in the past decade is no small feat.

Assistance From the World Bank

With assistance from the World Bank, the Uruguayan government has implemented a development process—a composite of loans, insurance, donations and informational exchange—that has had outstanding results. In 2013, Uruguay was ranked as a high-income country with the largest middle class in the Americas, at 60% of the population. Beyond economics, Uruguayan citizens have an extremely high level of confidence in their government, based largely upon low levels of corruption and governmental stability.

Overall, Uruguay is an anomaly in Latin America in terms of its financial independence and high level of equal opportunity for citizens. Though poverty still exists in the country, the prospects for decreasing it even further are extremely favorable as Uruguay continues to grow and prosper as an egalitarian and economically stable country.

– Bhavya Thamman

Photo: Flickr
Updated: May 27, 2024

Why the Monaco Poverty Rate is Zero

Monaco poverty rateHome to millionaires, a renowned casino and a prestigious Formula One Grand Prix, Monaco claims another headlining reality: the Monaco poverty rate is zero.

In order for any country to have a zero percent poverty rate, there must be zero percent of the population living under the international poverty line of U.S. $1.25 a day. So, why is the Monaco poverty rate zero? This feat is not accomplished easily; it is a combination of ideal conditions that have propelled Monaco to achieve its flawless poverty rate.

The Principality of Monaco is situated in the west of Europe along the French Riviera and bordered by France and the Mediterranean Sea. Monaco is aptly named a principality because its monarch takes the title of prince or princess. The current Prince of Monaco is Prince Albert III, who continues the Grimaldi family reign of more than 700 years.

This country is known for its beautiful surroundings and coastline, which helps draw a wealthy population, but its size plays an important role in the economy as well. Monaco is the second-smallest country in the world, after the Vatican City. It is a tiny two-square kilometers in size and the most densely-populated country in the world.

The number of residents this country can support is limited and its picturesque landscape draws people from around the world. Monaco is home to 30,645 residents. Only 16 percent of the residents are Monegasque (natives of Monaco), the majority is French and the rest come from nearby countries and outside. While Monaco’s size tightens the population, its economic strength adds additional incentives for residents.

Monaco’s current economy was strengthened by the historic decisions of Prince Charles III, known as the founder of Monte Carlo. Charles III ensured Monaco’s economic strength by taking advantage of gambling laws to build the Socièté des Bains de Mer, a company of a few hotels, a theater and a casino in 1863. The Monte Carlo casino became the most famous of these assets.

When gambling was banned elsewhere, the casino became a vacation of choice for the worlds wealthy, drawing in thousands of tourists. Charles the III also forged an agreement with France to install the first railroad across the principality as infrastructure to support the growing tourism market. Charles III attracted additional foreign investments when he established a zero income tax.

Why is the Monaco poverty rate zero? Tax incentives, location and the international popularity of Monte Carlo secured Monaco’s popularity with the wealthy and ignited the country’s tourism industry. Today, one-third of Monaco’s population makes more than $1 million to the point that Monaco’s GNI per capita is $186,080, the highest in the world.

Interestingly much of the working class in Monaco does not actually live there. Daily, more than 30,000 French and 5,800 Italian nationals travel to Monaco to work. This lends to the enormity of the private sector industries, which account for 86 percent of the labor force in Monaco. Monaco has developed into a destination for research centers, and 22 percent of the labor force works in scientific and technical activities, including administration and support services. The tourism industry accounts for 11 percent of the country’s economy, and the gaming industry 4 percent. The prince also guarantees all of the residents life-long employment, so there is nearly zero unemployment.

Monaco has the ideal combination of geographic, economic and residential dynamics to allow and support a zero percent poverty rate. The size of the country limits the amount of habitable space the country can offer and the landscape and world-renowned events like the Grand Prix give rise to millionaire inhabitants. The fiscal qualifications for residents in Monaco are set by the real estate prices while tax incentives provide a desirable buffer. Monaco builds its wealth on the investment of the worlds wealthy and maintains it through value-added tax revenues from established businesses. These factors have propelled Monaco’s reputation as the land of the millionaires and give insight into the Monaco poverty rate being zero.

– Eliza Gresh

Photo: Pixabay

Is the Slovakia Poverty Rate Reduction Sustainable?

Slovakia Poverty RateSlovakia is a country that tends to get overlooked when considering global poverty. While media entities and NGOs focus on African and Asian nations, eastern European countries like Slovakia do not normally make headlines.

The story behind the Slovakia poverty rate, however, is worth discussing. With the 2015 figures coming in at 12.3 percent, according to the CIA World Factbook, this number should be scrutinized.

Since its separation from the Czech Republic in 1993, Slovakia has had an odd growth experience. In the last 13 years, for example, Slovakia’s poverty rate has cycled between 13.3 percent and 10.6 percent, according to the World Bank. The CIA World Factbook’s 2015 figure of 12.3 percent shows a slow decrease following the 2011 peak of 13.2 percent, which was the second of two peaks over the last 13 years.

To be clear, the fact that the Slovakia poverty rate is decreasing is a good thing. The country’s low-cost labor force has made it an attractive hub for foreign investment in central Europe in recent years. According to OECD, Slovakia’s GDP growth rate is projected to be 4.1 percent, which is a respectable number for any country and outpaces many economic powers like the United States.

The question that remains, though, is whether or not this advancement, and particularly the decrease in the Slovakia poverty rate, is sustainable. The upward trend in the Slovakia poverty rate from 10.6 percent in 2006 to 13.2 percent in 2011 could be an anomaly due to the 2008 financial crisis. With an economy highly based on labor that focuses itself on volatile industries such as energy, Slovakia must diversify its economy if it wishes to continue its recent economic growth.

It will be interesting to see how Slovakia develops as the country pulls itself out of poverty, unemployment and the like. Whether or not this recent growth is truly sustainable remains to be seen, but there are high hopes for the young country.

– John Mirandette

Oman Poverty Rate: Good News from the Middle East

Oman Poverty Rate

The dichotomy of the Middle East region in terms of wealth and quality of life is one that truly boggles the mind. One need not search very far to learn of the tragedies that have befallen countries like Iraq, Syria, and Libya in the 21st century. The war-torn images of these countries are sketched into the collective Western mind. Simultaneously, countries like Saudi Arabia, the UAE and Qatar are home to some of the world’s greatest cities, fabulous wealth and futuristic-looking technologies.

What often goes unnoticed are the countries that fall somewhere in the middle; ones that are not ravaged by war nor blessed with a plethora of natural resources such as oil. The Sultanate of Oman is one such example.

Poverty is a fact of life for many Middle Eastern countries, but Oman is one of the bright spots in the region in terms of poverty reduction and efforts to elevate the quality of life of its citizens. The Oman poverty rate has been on the decline in the last decade and shows signs that it will continue to do so.

Oman created a national strategy in 1970 to spur development in all aspects of life in the country. At that time, Oman had almost no formal education system; by 1999, over 70 percent of children were in primary school. Moreover, in 1970, the life expectancy at birth was near 51 years; that has increased to 78 in 2014, an almost 53 percent increase, which outpaced the world average in the same time frame by 30 percent. Oman’s poverty rate has been reduced significantly because of these improvements.

Since 2000, Oman has reached eight of its Millennium Development Goals, most notably in providing education for all, including women and children, as well as reducing the number of people suffering from extreme hunger.

Entrepreneurial activity is also on the rise in Oman, sponsored mainly by Startup Oman, a Muscat-based fund that facilitates and promotes young Omani entrepreneurs. This fund aims to reduce poverty while simultaneously encouraging creativity in the economy.

The fishing town of Duqm is being radically transformed, thanks in large part to Chinese investments, into one of the country’s central economic hubs. This has boosted employment and spurred economic activity, providing economic opportunities for Omanis.

Even amid a geopolitical spat between other Gulf countries, Omani ports are benefiting from an unusual uptick in traffic, which has resulted in increased economic activity for Omani businesses and workers. While Oman may not want to be seen as profiting from the current row, it will likely solidify its position as a neutral arbiter in regional disputes, as it has for decades. This trend, in tandem with a reduction in Oman’s poverty rate, will allow it to establish itself as a peaceful and prosperous nation in the region.

The combination of government initiatives, foreign investment and an educated population has allowed Oman to improve the lives of its citizens, which is worthy of high praise considering the situation facing other countries in the Middle East.

As long as the government continues to focus on reducing the Oman poverty rate, the Sultanate will surely establish itself as a bright spot in the Middle East.

– Daniel Cavins

Photo: Flickr

Saint Vincent and the Grenadines Poverty Rate

Saint Vincent and the Grenadines Poverty Rate
The nation of Saint Vincent and the Grenadines is both small and beautiful, made up of 32 islands and landforms in the south Caribbean. It is known mainly as a peaceful island destination: a place to swim, snorkel and enjoy the view. Yet despite this reputation, the country is struggling to support its own population. Even taking into consideration recent economic improvements, the Saint Vincent and the Grenadines poverty rate remains shockingly high: as of 2008, 30.2 percent of the population was living in poverty.

This already disturbing rate is relatively low in comparison to that of 1996, when the rate was even higher, at 37.5 percent. While the country’s GDP has grown steadily since the 1980s, particularly thanks to the construction industry and the “banana boom” of the ’80s, trade access for the country’s most important crop, bananas, has been waning ever since and the national debt has only grown. As of 2009, the debt was roughly 60 percent of the GDP.

This lack of economic activity in addition to trade difficulty has led to high rates of both unemployment and underemployment, with many citizens turning away from traditional employment and to the underground market, such as growing and selling marijuana.

Though the Saint Vincent and the Grenadines poverty rate has dropped in recent years, many people feel the opposite effect. In 2008, 44.3 percent of citizens polled felt that conditions had worsened compared to previous years, perhaps to due to the rise of food and fuel prices around the same time.

In addition to economic difficulties, the people of Saint Vincent and the Grenadines suffer from a lack of health coverage. In 2008, only 9.4 percent of the population was covered by health insurance, and coverage is still rare even among the wealthiest in the nation. Teen pregnancy, meanwhile, is extremely common, with half of the country’s women reporting their first pregnancy before the age of 19. Saint Vincent and the Grenadines has long had a plan to put a national health insurance program into place, but the plan has experienced countless delays, and as of 2017, the plan has yet to be enacted.

Though the Saint Vincent and the Grenadines poverty rate looks grim, the country intends to take steps to remedy it. First on lawmaker’s minds is diversification and expansion of the economy, which would ensure that the country’s economy would not rely on bananas alone. Other key projects include paying off the national debt, expansion of national infrastructure and developing a health care system. These are no small feats to accomplish, but the country is committed to helping its citizens.

– Audrey Palzkill

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Djibouti Poverty Rate Continues to Fall

Djibouti, a small country wedged in the horn of Africa has had a long history of economic instability and poverty. In the last decade, the country boasted some of its highest poverty rates, however, after 2007, the Djibouti poverty rate finally started to decline.

In 2007, when the Djibouti poverty rate saw its first significant spike downwards, it was recorded at 42 percent. Now, with the buffer from aid organizations and economic help from foreign financing and foreign direct investments, Djibouti has successfully lowered its poverty rate to about 18.8 percent. This rate is a tremendous achievement as the last two decades the poverty rate has fallen about 30 percent.

Following its 2007 rate, the Djibouti poverty rate had dropped to 23 percent by 2013 and then to about 18.8 percent currently.

In 2011, Djibouti’s population reached 820,000. Unfortunately, most of the population were living in extreme poverty. The common causes of poverty in the country were consecutive years of drought, loss of livestock, destruction of crops, malnutrition and unemployment.

The little resources the natives did have were stretched thin for the influx of refugees from neighboring Somalia, where refugees were estimated at 15,000 and growing.

With resources quickly being depleted and food and fuel prices rising, organizations such as the U.N., the World Food Programme, UNICEF, the Food and Agriculture Organisation and the World Health Organisation raised approximately $20 million for food, drought relief, water rehabilitation and mobile health units.

With poverty rates falling, Djibouti has seen increases in its GDP, industrial production growth rate and labor force. The GDP in 2016 was reported at $3.34 billion, an increase of $200 million from 2015, while the industrial production growth rate rose to 4.7 percent in 2016, ranking it 40 in the world.

Although the country still experiences a relatively high percentage of poverty and unemployment, the Djibouti poverty rate has successfully fallen and will continue to fall with help from foreign countries.

– Amira Wynn

Addressing Three Main Causes of Poverty in Guadeloupe

Causes of Poverty in Guadeloupe

Poverty in Guadeloupe has been severe for over a decade. Multiple factors contribute to the French territory’s 12.5 percent poverty rate, including natural disasters, a poor job market and a high crime rate.

Disasters

Guadeloupe is in an island region located in the Caribbean, which means that it is located in an area that is plagued by natural disasters. The region was hit by Hurricane Dean in 2007, which destroyed an estimated 80 percent of the banana crop. This was devastating to the country, as bananas are one of Guadeloupe’s three top exports, in addition to sugar and rum.

According to the U.S. Geological Study, Guadeloupe was also struck by a magnitude 5.7 earthquake in 2014. Along with earthquakes and hurricanes, Guadeloupe regularly faces clouds of ash from Montserrat’s volcano. These clouds can block the sun, damaging the production of all of their crops, which greatly affects their economy.

Since Guadeloupe is prone to such natural disasters, efforts have been made to help these affected areas more effectively and efficiently. One of the first steps, taken in 2003, was to establish a flood forecasting support service, as flooding can be caused by hurricanes and earthquakes, two of the most prevalent natural disasters. Guadeloupe also has Regional Health Agencies that have divided themselves between the three territories, including the two new communities in Saint Martin and Saint Barthelemy, to help provide health care to those who face injury in disasters.

Poor Job Market

One of the biggest aspects of a strong economy is a stable job market. Unfortunately, as of 2010, roughly 23.5 percent of the population in Guadeloupe was unemployed. With nearly one in four people jobless, unemployment is one of the major causes of poverty in Guadeloupe.

Even those who have jobs continue to face problems. In 2009, nearly 50 unions gathered together under the Collective against Extreme Exploitation to protest for weeks for higher living wages, adding €200 $250 to base salaries. These protests caused widespread issues, as supermarkets and government offices closed and a food shortage spread across the nation. The Collective’s demands were finally met on March 4, 2009 and $216 million of aid was sent from France.

Crime

Guadeloupe is also facing a high rate of violent crime. According to the United Nations Office on Drugs and Crime report, in 2009 the homicide rate in Guadeloupe was 7.9 percent per 100,000 people, which is higher than the United States’, at 5.01 percent the same year. Crime has continued to rise since then, and in September 2016 France sent 70 police officers to help stop the crime that was devastating Guadeloupe. France hopes to protect its citizens, and to help restore Guadeloupe’s status as a tourist attraction where tourists can feel safe.

With all these causes culminating to create poverty in Guadeloupe, it may seem like there is little hope. However, Guadeloupe has been on a resurgence and its efforts to rebuild are taking effect. For example, before Hurricane Irma hit in the beginning of September 2017, France had already mobilized military and health care personnel so that they were stationed in Guadeloupe to provide help after the storm. This effort made a lasting impact on Guadeloupe and its people, sparing many lives. With continued support from France, the people of Guadeloupe will be able to move out of poverty and thrive as a nation.

– Scott Kesselring

Photo: Google

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Causes of Poverty in Moldova

Causes of Poverty in Moldova

Moldova is the poorest country in Europe. Its gross domestic product per capita stands at only $5,200. Around 20 percent of Moldova’s 3.5 million people are poor. There are several causes of poverty in Moldova. Here are a few:

Limited agricultural investment
Poverty is more common among farming families. The country’s history can partly explain why this is.

When Moldova gained independence from the Soviet Union in 1991, the government divided a lot of agricultural land into plots too small to be commercially viable. The small size of the plots–most under 2.5 hectares–meant farmers had to depend on manual labor instead of large, advanced machinery and technology. This led to inefficiencies and poor yields compared to the land’s potential.

Rural Moldovans continue to lack access to new technology, agricultural support services and financial services, which shackles them to a life of subsistence farming. With extension services, they could better contribute to agriculture’s share of Moldova’s GDP, which is around 14 percent.

Trade restrictions
A lack of agricultural investment is not the only cause of poverty in Moldova. Sometimes, families, businesses and entrepreneurs have goods, but they do not have reliable buyers.

Countries that Moldova would usually trade with have imposed strict sanctions or all-out bans on products from the small nation. Russia has repeatedly rejected Moldovan goods, such as wine, fruit and vegetables, by stating they do not meet its high quality standards.

This closed market took a toll on the Moldovan economy, which in turn trickles down to negatively affect citizens. Before the embargo in 2014, 90 percent of Moldova’s apples went to Russia. Now they are sent to other countries that buy them at lower prices.

Government corruption 
Corrupt oligarchs and politicians rob citizens of money. In 2015, $1 billion — or about one-eighth of the country’s GDP — was stolen from the country’s three largest banks. Around 40 people, including a former prime minister, either helped or benefited from the massive theft.

The capital city’s mayor, the transportation minister, the agriculture minister, the deputy economic minister, the environmental minister and other public officials face corruption or embezzlement accusations. The many officials facing these charges do not appear to have the general public’s best interest in mind.

Corruption in Moldova makes it difficult for people to succeed in business. Around 30 percent of all companies reported that public authorities requested bribes at least once per year to pass inspections, get permits, obtain utilities access or secure an operating license. The cost of electricity in the country is nearly double the price in the rest of the region, according to the GAN Business Anti-Corruption Portal. These oppressive practices stifle Moldova’s business environment and rank among the causes of poverty in Moldova.

Weak social systems
UNICEF reports that Moldova has a social protection system that comprises 15 benefits and services. But just one of these benefits is for the poor. Furthermore, money earmarked for the poor does not always end up in the right hands. A state report found that 17 percent of social assistance is used inefficiently and goes to families with high incomes.

Adding pressure to government financial resources is an aging population. Low wages, limited educational opportunities and poor job prospects push young Moldovans to leave their home country. Moreover, the birth rate is too low to replenish the population that is lost.

These factors create a disproportionate number of elderly people in the population. The high proportion of the country’s elderly is putting pressure on the country’s pension system.

The government is considering increasing the retirement age to lessen its financial burden, but there are not a lot of jobs for people to get. The labor participation rate was a mere 42 percent in 2016.

Causes of poverty in Moldova include limited agricultural investments, trade restrictions, government corruption and a weak social system. But, the government of Moldova is committed to helping alleviate poverty.

The government works with International Fund for Agricultural Development (IFAD) to create microfinance opportunities for farmers, which supports agricultural investment and can increase farmers’ returns. IFAD has also invested in agro-processing to ensure farmers prepare their goods for domestic and international markets.

Moldova is also making progress in regards to corruption. Parliament passed a new law on prosecution in 2016. It helps in the fight against corruption by strengthening prosecutor independence and doubling salaries, so prosecutors are less prone to accept bribes.

More evidence of the government’s goal to reduce poverty is its “Moldova 2020” National Development Strategy. The strategy details how reforming the pension system and developing the labor market will contribute to poverty rate reduction. 

As the above examples demonstrate, leaders have set their sights on fixing the underlying causes of poverty in Moldova.

– Kristen Reesor

Photo: Flickr