Tag Archive for: Economics

Posts

Facts About the Tajikistan Poverty Rate

Tajikistan Poverty RateAs of 2017, the Tajikistan poverty rate is 32 percent, meaning that 32 percent of the population lives below the national poverty line. Additionally, 3.7 percent of people live on less than $1.90 a day, according to the Asian Development Bank.

Tajikistan has one of the highest poverty rates of central and west Asian nations. It is currently third, following Afghanistan and the Kyrgyz Republic.

The current poverty rate is only slightly higher than that of 2015, when it was at 31.5 percent. Over the last five years, the Tajikistan poverty rate has hovered around the low 30 percent range.

Notable strides have been made since Tajikistan declared independence from the Soviet Union in 1991. According to UNICEF, the Tajikistan poverty rate was above 70 percent in the early 2000s. However, it remains one of the poorest countries in western Asia.

Poverty in Tajikistan has a particularly significant effect on children, large families with multiple children, and families in rural areas. For every 1,000 babies born, 39 die before their first birthday.

The poorest people in the country live in the rural Khation region. Here, 78 percent of the population lives below the national poverty line. The primary cause of rural poverty is a reliance on agricultural activities that do not provide an adequate income.

Tajikistan is currently the largest remittance-dependent country in the world. In 2012, it was the top receiver of remittances from Russia. Today, remittances make up over half of Tajikistan’s GDP (52 percent in 2013). The majority of families in Tajikistan have a migrant member of the household. In general, remittances have had a positive impact on reducing child poverty. They have been shown to improve living conditions for children, especially in terms of nutrition and morbidity rates.

The World Bank’s solutions for reducing poverty in Tajikistan are geared primarily towards private sector development, specifically private investment and private sector-led growth. An increase in both areas, and especially in agriculture, are represented in the World Bank’s ongoing Country Partnership Strategy (CPS). The organization has highlighted the need for a more “competitive” and “transparent” business environment. The movement of goods across borders to regional markets needs to be made easier as well.

Several achievements in the fiscal years of 2011 and 2013 have helped combat poverty in Tajikistan. This includes the implementation of a “single window” that simplifies import and export procedures, as well as the implementation of a revised tax code simplifying tax reporting procedures. These results and others are evidence that growth and solutions are underway in Tajikistan.

– Melanie Snyder

Photo: Flickr

Questions and Answers About the Poverty Rate in East Timor

Poverty Rate in East TimorEast Timor is one of the youngest countries in the world. Located in eastern Asia, the Independent Republic of Timor- Leste declared independence in 2002. Since then, the oil-dependent economy has grown rapidly and the government has worked to create institutions and provide services. East Timor has funded development by rerouting money from its petroleum fund, which collects profits from the petroleum-based economy. The government distributed these funds through its budget. East Timor created the Strategic Development Plan to guide its work from 2011 to 2030. Despite the government’s focused work, much of the country still lives in poverty.

What is the poverty rate in East Timor?
A reported 41.8 percent of the population in East Timor lives below the national poverty line. There is also immense income inequality in East Timor. In 2006, the poorest two-fifths of the population accounted for 18 percent of the country’s expenditure and the wealthiest two-fifths of the population accounted for 66 percent of the spending. Poverty rates are highest in rural areas.

How has the poverty rate changed?
In 2001, the poverty rate in East Timor was 36.3 percent. In 2007, the poverty rate rose to 49.9 percent. The poverty rate increased from 2001 to 2007 because the part of the economy not based on petroleum decreased. The non-petroleum economy must increase in order for the poverty rate in East Timor to decline. In addition, some of the initial elections in the country were violent and chaotic, which can cause poverty and instability.

What are some of the causes of poverty in East Timor?
As a young country, East Timor has had to rapidly create many institutions. The expanding population is placing pressure on the already limited job market. Many people in East Timor are unemployed. In addition, the transition from Indonesian occupation was chaotic and violent. A significant amount of infrastructure in the country was destroyed or damaged during this transition. These damages have hurt the operation of the economy and the government has had to fund repair projects.

How can the government reduce the poverty rate in East Timor?
The government needs to make plans to diversify the economy. In addition, the country needs to improve healthcare and education services. The population needs to gain industry skills so that the economy can expand and diversify. Programs should be designed to target young people; 60 percent of the population is under 25, and they are the future workforce. The government should also encourage private investment. Finally, as a new country, East Timor must continue strengthening its national and regional institutions.

While East Timor has quite a long way to go, it has also seen many successes, mainly in healthcare and education. The population has an increased life expectancy and a reduced child mortality since 2002. School enrollment and literacy have increased since the country gained independence. East Timor also eliminated leprosy since its inception. The poverty rate in East Timor should continue to decline due to the government’s focused work.

– Sarah Denning

Photo: Flickr

The Deeply Rooted Causes of Poverty in Estonia

Causes of Poverty in EstoniaEstonia, the northern European country on the Baltic Sea, has endured much as a former Soviet republic. While it was a part of the USSR, Estonia had an economy that was for the most part equally beneficial to everyone, and had the status of the most prosperous member of the Soviet Union. After the collapse of the Soviet Union, the Estonian government put reforms in place that caused an increase in the gap between the rich and the poor. The country has seen improvements in human rights and healthcare as a result of its distance from Russia, but there is still a need to fight the causes of poverty in Estonia.

One in five people live under the poverty line in Estonia. Statistics Estonia reported in 2014 that 21.6 percent of people were considered impoverished and 6.3 percent lived in deep poverty. 8 percent of the poor are employed, and more of these individuals are female than male. In 2015, 21.3 percent lived in poverty and 3.9 percent in deep poverty, suggesting improvements in the distribution of wealth.

A lack of education is one of the causes of poverty in Estonia, and those who have received low levels of education have a 33 percent chance of living in poverty. The elderly are also at risk for an impoverished life. As of 2015, over 40 percent of individuals over 65 lived below the poverty line. These citizens are often dependent on pensions from the government.

The income inequality in Estonia has led to the segregation of cities, including its capital, Tallinn. The rich are moving to certain districts and the poor are living in others. This in itself is not inherently negative, aside from the fact that people are living in poverty, but can lead to conflict when the segregation extends to minority ethnic and racial groups.

While these figures on the causes of poverty in Estonia sound disheartening, the percentage of people living in relative and total poverty have actually decreased from previous years. As of 2014, the total income increased from the year before, and the gap between the rich and poor decreased. With increased foreign aid and governmental efforts to improve education and support for the poor elderly, the former USSR republic will be well on its way to eliminating the causes of poverty in Estonia.

– Julia McCartney

Photo: Google

Morocco Poverty Rate

Morocco Poverty Rate

A culturally rich and beautiful country, Morocco lies in North Africa, bordering the Mediterranean Sea, and is a frequent tourist destination. Despite its reputation for opulence and wealth, the country remains developing, with a significant wealth disparity between rural and urban areas. Although the Morocco poverty rate has been steadily decreasing, there is still much work to be done.

In 2005, Morocco’s government began focusing on raising the standard of living through a project called the National Human Development Initiative Support Project (INDH). The main goals of this initiative included reducing poverty in urban and rural areas and offering support to the most vulnerable groups in Morocco. Through a budget of over $1 billion and a five-year implementation plan, the country made some progress in improving living conditions and reducing poverty for Moroccans.

From 1998 to 2007, the Morocco poverty rate dropped from 16.3 percent to 8.9 percent. In 2014, the rate has reduced further, to 4.2 percent. Despite this admirable progress, nearly 19 percent of Morocco’s rural population is in poverty, showing the large gap in wealth between the urban and rural populations. Furthermore, while only 3.1 percent of the population lives on $1.90 per day, an estimated 15.5 percent of the population lives on $3.10 a day.

The efforts to lower the Morocco poverty rate have been relatively successful, but there are undeniable underlying factors that have contributed to the lower levels of poverty seen today. Some of these factors include the large amounts of money that many Moroccans living abroad send to their families back home, the continued support of nonprofit organizations and decreasing rates of population growth. Researchers believe that these specific circumstances may have artificially lowered poverty rates, displaying Morocco’s poverty-reducing efforts as being more than successful than they truly are.

While the economic liberalization and other economic developments has provided further wealth to the elites of Moroccan society, these benefits have yet to be similarly reaped by the country’s poor. In fact, the number of Moroccan millionaires has doubled to 4,800 since 2000, but economic inequality continues to run rampant. Although 75 percent of Morocco’s poor live in rural areas, serious levels of unemployment plague urban youth, with 39.9 percent of them unemployed.

Morocco’s government has undoubtedly emphasized bettering the population’s economic conditions, but many of these efforts have been unsuccessful in their ability to truly reduce extreme poverty, especially in rural areas. Progress has been made, but much remains to be done to eliminate extreme poverty and reduce inequity between urban and rural areas.

– Akhil Reddy

Photo: Flickr

Causes of Poverty in the Czech Republic

Causes of Poverty in the Czech Republic
In the wake of its post-communist economy, the Czech Republic is working to revitalize its financial strategy and to become a commercial powerhouse in Eastern Europe. However, obstacles preventing the country from improving its economical state are due to the nature of its communist past.

The absence of labor markets forced the communist government to impoverish its citizens in order to sustain the state. Causes of poverty in the Czech Republic stem from the country’s political and economic background during the late 20th century and are exhibited through its complex economic struggles, faulty environmental policies and societal differences.

The Czech government enforces strict fiscal restrictions, which inhibit its economy from reaching its potential. Czechoslovakia strategizes its economy towards export-based trade to maximize external growth. This plan compromises economic security and further perpetuates causes of poverty in the Czech Republic. In order to strengthen its fiscal prospects, the Czech government must invest in its domestic demand for the sake of creating a more sustainable economy.

Instead of resourcing its environment responsibly by taking into consideration long-term consequences of pollution and resource obsolescence, the Czech Ministry of the Environment approves of policies that allow systematic ruin to the environment. This, combined with the issuing of permits without charge to large corporations (which wastes 47.5 billion Czech Korunas), deprives the Czech economy of state revenue it could utilize to fund public sectors that are desperate for financial aid.

With unemployment at 10 percent and various instances of political corruption, Czech society (which is exhaustively compromised of its middle and lower class) is distrusting of governmental figures and industry elites that dominate its politics. While the labor market of the Czech Republic is currently strong and wage increases are on the rise, causes of poverty in the Czech Republic are also contributing to fracturing the coexistence between social classes. For example, the Czech Republic’s reliance on its pension system is not ideal for economic longevity due to increasingly falling replacement rates.

If the Czech Republic is to preserve its strong labor market and to extend pensions to its citizens, it should focus on domestic market growth to meet the demands of its country from the inside out. In addition, the Czech government should focus on lessening the severity of its fiscal restrictions in hopes of liberating its economic prospects and combatting the causes of poverty in the Czech Republic.

– Kaitlin Hocker

Photo: Flickr

Why is Jamaica Poor?

Why is Jamaica Poor

Considered an upper middle-income country as stated by the World Bank, Jamaica has much to improve upon within its economy to decrease poverty rates in the country. Jamaica is considered to be one of the slowest and most unstable economies in the world, weakened by high debt rates. As for today, Jamaica’s poverty rate has improved, with a 1.7 percent growth of GDP during 2016 and an expected 2 percent for 2017. Many reforms have been instituted to reduce the country’s debt. However, Jamaica still has a lot to improve on in order to eliminate poverty. So, what are the answers to the question why is Jamaica poor? High crime, unemployment and inflation are a few of the answers to this question.

Most criminal activity in Jamaica is related to gang activity and use of illegal drugs. Police data confirms the occurrence of many murders in 2017, with an increase of 19 percent and a total of 639 people killed from January 2017 to June 2017. This represents an average of four murders per day. This places Jamaica’s homicide rate among the top five highest national homicide rates in the world.

Jamaica also experiences increasingly high unemployment rates within the population. The Statistics Institute of Jamaica reveals a slight decline in unemployment, with a rate of 12.9 per cent as of October 2016 and 12.2 as of April 2017. This clearly shows there was only a slight improvement between 2016 and 2017, but the rates are still high as of today.

Another reason Jamaica is poor is its high inflation rate – averaging 9.54 percent between 2002 and 2017. As of July 2017, Jamaica’s inflation rate had declined to 4.4 percent. Jamaica has been known to spend half of its income on imported good for basic necessities. The country relies mostly on goods such as food, gasoline and clothing. Its high reliance on imported goods creates an increasing deficit, endangering the state of its economy and keeping people below the poverty line.

After asking why Jamaica is poor it is also important to ask what the solutions are to end poverty in Jamaica. By reducing Jamaica’s crime rates and having more employment opportunities, Jamaica would increase its chances to improve its economy and become richer in more ways than one. Seeing Jamaica’s slight improvements in recent years, it offers some hope for eventually ending poverty in the future.

– Sarah Soutoul

Photo: Flickr

Income Inequality: One of the Causes of Poverty in Costa Rica

Causes of Poverty in Costa Rica
Costa Rica is known for its sunny seaside beaches and tourist attractions. It is arguably the most stable and most prosperous country out of all its Latin American neighbors. A large part of this is due to government spending. Nearly 20 percent of Costa Rica’s GDP goes toward social spending. Because of this, the Costa Rican economy has boomed. The infant mortality rate has decreased, while healthcare and sanitation have improved. But in recent years, Costa Rica’s poverty rate has stagnated at roughly 20 percent. This begs the question: what are the causes of poverty in Costa Rica? Why, despite all the government’s spending, does it still persist?

A large part of the answer is income inequality. There is extensive research showing that income inequality is correlated with higher levels of poverty. And without a doubt, income inequality is one of the main causes of poverty in Costa Rica.

Urban Costa Ricans are largely outpacing rural Costa Ricans when it comes to income. The top 20 percent of earners make an average of $4,650 per month, while the bottom twenty percent make only $360. In other words, wealthy Costa Ricans are making nearly 13 times as much money as poor Costa Ricans.

This can have dire consequences. The Organization for Economic Cooperation and Development (OECD) has found that income inequality can cause the economy to slow down. In addition, it prevents poorer people from finding high-paying jobs.

However, Costa Rica is not doomed to an eternity of inequality. The OECD shows that inequality can be reduced simply by encouraging women to join the workforce and providing better access to higher-quality jobs. Costa Rica’s government is already working hard to eradicate poverty, and the future looks bright. Income inequality may be one of the main causes of poverty in Costa Rica, but it does not have to stay that way.

– Adesuwa Agbonile

Photo: Flickr

Why the Malaysia Poverty Rate is So Low

Malaysia Poverty Rate

According to one of the most recent reports by the World Bank, Malaysia has had an inclusive economic growth rate of about 7 percent annually for the past 25 years. Since this growth has been inclusive, Malaysia has been successful at nearly eradicating poverty in the country. This makes the Malaysia poverty rate comparatively low—less than 1 percent of Malaysians live in extreme poverty.

How is it that the Malaysia poverty rate can be so low?

The answer to that question is multifaceted.

Diversifying the Economy

Firstly, it has to do with the economy. In the 1970s, the industry in Malaysia shifted from being based in the production of raw natural materials to a more diversified economy. Malaysia started to export electronic appliances and parts, palm oil and natural gas.

This diversified economy in turn called for a more diversified and specialized labor force. In 2015 alone, Malaysia witnessed a labor force growth of 1.8 percent and a labor participation rate of 67.9 percent—up about 0.3 percent from 2014. Decreases in unemployment rate have followed economic growth. As of June 2017, the unemployment rate is at 3.2 percent. Comparatively, the U.S. currently has an unemployment rate of 4.4 percent.

Helping the Right Population

The second reason why the Malaysia poverty rate is low is because of the population that has benefited the most from the recent economic growth. The Malaysian government has shifted its focus to address the households in the lowest 40 percent. These “bottom 40” households saw a growth of 11.4 percent from 2009 to 2014. That is compared to the 7.9 percent growth of the total population of Malaysia.

However, because of the focus on the lower income households, many people in the middle class have been left out. According to an article by Malaymail Online, some have even fallen into what is considered poverty. Much of this is due to the high inflation rates per year versus the lack in increase in household income.

In the past, the rising incomes and low cost of living allowed the middle class to thrive in Malaysia. However, as of 2012, inflation started to increase. Thankfully, in the past year the inflation has dropped from around 5 percent to 3 percent.

The future goal of Malaysia as a nation is to reach high income status by 2020. With an economic growth of 7 percent annually for the past 25 years and the Malaysia poverty rate at an all-time low, this number seems realistic and attainable.

– Sydney Roeder

Photo: Flickr

Causes of Poverty in Seychelles

Causes of Poverty in Seychelles

Although only around one percent of citizens in Seychelles live in extreme poverty, the country hopes to assist those living in that condition and eventually bring them out of poverty. Here are some of the causes of poverty in Seychelles and how the government is responding to it.

One of the causes of poverty in Seychelles is its dependence on tourism. When the global economy is struggling, tourism is a luxury that many people give up. When tourism declines, this severely affects the majority of Seychelles’ economy. Beyond that, Seychelles is uncomfortable with raising the cost of tourism to make the country more competitive with other tourist destinations; the country strongly values their reputation as an inexpensive place to visit.

Both of these factors culminate into a strong economy that nevertheless cannot sustain its growth. eTurbo News discusses how Seychelles maintains a decent gross domestic product. Unfortunately, a lack of national or international competition prevents the country from soliciting economic improvement.

The stagnant economy exacerbates other causes of poverty in Seychelles, one of which is the incredibly high cost of living. One of many reasons for this is a value-added tax on many items, which makes buying and selling those items very expensive for both the consumer and the producer.

Another of the causes of poverty in Seychelles is the lack of basic needs for the poorer citizens of the country. A study explored in Seychelles News Agency highlights how a large number of Seychellois people lack clean water, food and electricity. The survey also highlights the effects of drug abuse on poverty in Seychelles. In turn, this drug use leads to a lot of ineffective crime punishment.

Because of the causes of poverty in Seychelles, the government is developing programs to assist the poor in the country. Already, the government of Seychelles has implemented short-term intervention programs aimed at making sure families have access to water, food and all-around adequate living conditions. These programs are a fantastic first step aimed at alleviating poverty for Seychelles’ poorest citizens and hopefully they will continue to help even more people.

– Cortney Rowe

Photo: Flickr

Why Is Chad Poor?

Why is Chad PoorChad is a landlocked nation within Africa and one of the world’s poorest countries. As 87 percent of the rural population lives below the poverty line, many raise the question, “Why is Chad poor?” While the answer is multidimensional, the following are three major reasons for poverty in Chad.

1. Climatic Variations
As Chad’s climatic conditions can change drastically from droughts to torrential rains and flooding, the nation lacks reliable production of harvests, which is the main answer to the question, “Why is Chad poor?” Because the amount of rainfall varies drastically from one year to the next, harvests of staple foods such as millet and maize are often put in jeopardy. When a period of drought lasting over a year is followed by heavy rains that bring floods and destroy crops, food insecurity becomes a consistent threat and ongoing problem. According to the World Food Programme, Chad ranks 73rd out of 78 countries on the Global Hunger Index.

2. Poor Public Services
While there are a few hospitals and health centers within the country, the facilities within them are poor and understaffed. According to the World Health Organization (WHO), there were only 345 doctors working in the country between 2000 and 2010, which equates to just 0.4 physicians for every 10,000 people. Along with a lack of access to proper healthcare, underdeveloped infrastructure and limited human resources serve as major obstacles towards the education of those within Chad, as only one-third of adults are literate and just two-thirds of youths are enrolled in basic schooling.

3. Economic Misfortune
Another critical area in need of assessing in order to answer the question “Why is Chad poor?” is the recent oil crisis. Since joining the list of oil-producing countries in 2003, Chad’s economy has been heavily dependent on oil. With the plunge in oil prices in 2014, the nation has faced a continuing recession, leading to projected cuts in public services as well as an expected rise in poverty.

While the question “Why is Chad poor?” may seem too complicated to determine, reducing poverty within the nation, as well as globally, is a highly achievable task. Through the assistance of foreign aid, developing nations are able to increase the accessibility of productive public services, and for Chad, this would mean a major increase in the amount of citizens able to experience the empowerment of an education and good health in their future.

– Kendra Richardson

Photo: Flickr