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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

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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

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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

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The Slovenia Poverty Rate Is Improving

Slovenia Poverty Rate

In the wake of the 2008 financial crisis, one country that seemed to get overlooked was Slovenia. A Balkan country located in the heart of Central Europe, Slovenia wasn’t regularly mentioned in any newspapers or government hearings, but it, too, has had long-lasting economic issues.

The Slovenia poverty rate skyrocketed in four years, from 11.3 percent in 2008 to 14.5 percent in 2012, according to the World Bank. This number has since hovered around that peak, with the most recent data out of the C.I.A. World Factbook stating that, as of 2015, Slovenia’s poverty rate has remained at 14.3 percent.

Furthermore, Slovenia’s unemployment rate also saw a massive multi-year increase, from 4.38 percent in 2008 to 10.11 percent in 2013, according to the Organisation for Economic Co-operation and Development. World Bank data also shows that Slovenia’s GDP saw steady decreases while their population grew slightly over the same period.

The economic situation in Slovenia, though, has begun to change for the better. While Slovenia’s poverty rate, unemployment rate and the like have worsened since 2008, their trajectories are now turning around, forecasting a positive future for the small European nation.

By focusing on its economy, Slovenia has used export development as a catalyst to improve other societal factors. The Slovenia poverty rate, while currently at 14.3 percent, hasn’t worsened, their unemployment rate has dropped to 8.01 percent of the labor force and their projected GDP growth rate is a respectable 3.1 percent.

What this means is that, while Slovenia has undoubtedly suffered economic hardships over the last decade, there is hope for the future. With Slovenia’s poverty rate stabilizing and with other economic factors seeing marked improvements, Slovenia is on track to make a strong recovery. The next few years could be bright for the country and its people.

– John Mirandette

Photo: Flickr

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Understanding the Serbia Poverty Rate

Serbia Poverty Rate

The Republic of Serbia is a European country that declared its independence from the union of Serbia and Montenegro in 2006. Due to Serbia’s separation from the union and its rapid growth between 2001 to 2008, the country faces a substantial poverty rate.

According to the United Nations Development Program (UNDP), nine percent of Serbians are living in poverty as of 2016. Additionally, a concerning 25 percent of Serbians are on the verge of poverty. However, the Serbia poverty rate has improved since 2014, in which one in four people were living below the poverty line. Currently, the most vulnerable groups in Serbia are the Roma and youths.

The Roma are widely recognized as the European Union’s largest minority group, totaling ten million people. In many countries, including Serbia, the Roma were particularly vulnerable to poverty largely due to discrimination. Overall, 19.7 percent of Serbians are unemployed, and more than 50 percent of the unemployed are Romani.

Thus, a significant percentage of the Serbia poverty rate is made up by the Roma, who make up two percent of the Serbian population. Poverty among the Roma continues to persist as Serbia’s method for inclusion relies wholly on education, despite current statistics. As of 2015, only 8 percent of Romanis completed high school, due to discrimination and family financial difficulties. To adequately address the economic disparity of the Roma, more efforts will need to be put towards inclusion.

Youth in Serbia are more likely to be on the verge of poverty or living in poverty due to unemployment. The UNDP reported that “1 in 8 children under the age of 14 live in poverty”. As of 2016, 44.2 percent of youths were reported as unemployed. This is caused by a gap between the supply and demand of skilled labor brought about by Serbia’s flawed educational system.

Education in Serbia is currently not centered around their economic needs, so youths do not have the required skills for available positions. Poor education has led to a substantial long-term youth unemployment rate of more than 50 percent. Educational reforms will need to be made to address youth unemployment and poverty.

Governmental reform programs are underway to address the Serbia poverty rate and to prevent more people from falling into poverty. The rapid growth of Serbia led to significant internal and external imbalances that will need to be addressed through fiscal consolidation.

Structural reforms will also be needed to address the current problems with the Serbian educational system as well as other services.  With effort from the Serbia government and outside assistance, there is hope that the Serbia poverty rate will significantly decrease by 2030.

– Haley Hurtt

Photo: Flickr

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The Fight for Equal Human Rights in Latvia

Human Rights in LatviaLatvia – a former member of the USSR – is nestled in northeast Europe. It boasts a free market economy and has joined both the EU and NATO. However, with a long history of oppression of human rights, Latvia has struggled to acknowledge and enforce equal rights for all people. Stemming from violence suffered while under the Soviet Union, there are a few key concerns regarding the status of human rights in Latvia.

Latvia has a large number of stateless individuals – over 250,000 of the population. These people, many of whom are children, are not recognized as citizens of Latvia and do not enjoy many of the benefits that come with being a citizen. A lot of these stateless people are ethnic Russians who have difficulty becoming citizens of Latvia due to discrimination.

Discrimination against Russians carries over to many aspects of daily life. People who are not citizens of Latvia endure heavy restrictions in the professional world and are also limited regarding land ownership. Several people have been fired from positions due to possessing an unsatisfactory mastery of the Latvian language. Recently, the mayor of the capital of Latvia was fined for using Russian in a media post. This discriminatory behavior creates a barrier to achieving equal human rights in Latvia.

The U.N. has also raised concern about human rights in Latvia for the disabled. These concerns are specifically regarding the mentally disabled, and representatives for human rights have insisted the Latvian government prioritize the education of disabled children.

Latvia has the EU and the U.N. to hold them accountable for the preservation of human rights, and these organizations have certainly being doing so. While many issues create barriers to attaining the equal treatment of all people, Latvia continues to create reform to try to combat these issues – though there are definitely some areas still needing work. As long as the country is held accountable for its treatment of people, surely progress will be made.

– Julia Mccartney

Photo: Flickr

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Human Rights in Sweden: A Model for the Rest of the World

Human Rights in SwedenAs the first country to legislate freedom of the press in 1766, Sweden has had a history of being a vanguard for human rights for hundreds of years. Human rights in Sweden are a top priority for both its citizens and its government. With its seat on the U.N. Security Council and the establishment of the Human Rights Watch offices within its borders, Sweden sets a remarkable example for other developed countries to follow for upholding human rights.

The strong human rights record in Sweden is due to its governmental determination in uplifting its humanitarian tenets, include fighting discrimination, protecting the rule of law, building democracy and strengthening freedom of expression. Government officials fervently believe in protecting human rights in Sweden because it promotes global development and national security. In 2008, the Swedish government took detailed measures towards eradicating discrimination as much as possible by mandating that human rights must be incorporated into all realms of foreign policy.

Sweden’s international leadership in human rights is a defining characteristic of the country’s view on foreign policy. Given that extensive laws protect Sweden’s citizens within its borders, the country’s current agenda is to protect these rights abroad and to introduce laws that protect those whose rights are not as guaranteed. Sweden assists various international organizations such as the United Nations in extending human rights to those living in developing countries.

In order to combat domestic discrimination, the Swedish government introduced the Swedish Discrimination Act of 2009. It counters discrimination in professional and educational sectors by allowing compensation to be given to those who have experienced discrimination. Although Sweden exerts significant effort to protect human rights, there are still certain demographics that its legislation is not protecting completely. Specific groups that have been targeted include Roma, African, and Muslim Swedes. However, the Swedish government is aware of these reports and strives to assist those who encounter discrimination. According to Sweden’s official website, “Human rights largely begin at home. As Sweden strives to walk its talk, it is important to ensure that the values promoted abroad are upheld at home.”

– Kaitlin Hocker

Photo: Flickr

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Human Rights in Slovakia

Human Rights in SlovakiaThe state of human rights in Slovakia, an EU member state located in central Europe, is in need of major reform. The discrimination against the Romani people – also known as Gypsies – has been carried out in various forms, such as restrictions on the right to education and ill treatment by police forces.

The Roma population, which constitutes approximately two to four percent of the Slovakian population, is the second largest minority group in Slovakia. The most prevalent type of discrimination against the Romani people in Slovakia has occurred in the education system, in the form of segregating Romani children. A joint report by the Amnesty International and the European Roma Rights Centre (ERRC), published on March 1, 2017, revealed that Romani children are regularly assessed as having “mild mental disabilities” and are sent to special schools that provide an inferior education. Although Slovakia had already received a threat of fines from the European Commission two years ago for breaching EU discrimination laws, racial segregation in schools is still rampant across the country.

Another form of discrimination that is representative of the current state of human rights in Slovakia is the ill treatment of Roma by the police. According to the Slovakia 2016 Human Rights Report published by the U.S. Department of State, a number of NGOs and members of the Romani community have reported incidents of police officers abusing suspects both while being arrested and after being imprisoned. For instance, in 2010 a Romani minor who was arrested for robbery claimed that police officers committed acts of violence against him in order to force him into giving a confession. In July 2016, the European Court of Human Rights (ECHR) ruled that the state failed to carry out an adequate investigation into this incident and ordered the Slovakian government to pay €1,500 to the minor, in addition to legal costs.

The aforementioned cases of discrimination illustrate that human rights in Slovakia are in need of substantial improvement. While numerous members of the Romani community are already fighting for social inclusion and equal opportunities, efforts from the civil society and government will be crucial in eliminating such deep-rooted human rights issues.

– Minh Joo Yi

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Hunger in Gibraltar No Longer a Problem

Hunger in GibraltarTwenty-first-century Gibraltar is drastically different from what it was just thirty years ago. According to the CIA’s World Fact Book, the self-sufficient British Overseas Territory benefits from an extensive shipping trade, offshore banking, its position as an international conference center and tourism, among many other economic drivers. Low tax rates have also attracted plentiful foreign investment, driving British military presence to decrease to seven percent from the original 60 percent in the mid-1980s and hunger in Gibraltar to near dissolution.

Although no data exists to date for the percentage of Gibraltar’s 34,408 citizen population living below the international poverty line, the territory’s unemployment rate was listed as one percent in 2016, suggesting that Gibraltar has come a long way since the 19th century, when malnutrition, disease and economic instability were widespread. With improvements in the economy, poverty and hunger in Gibraltar have naturally become less and less concerning.

Gibraltar is currently a member of the European Union as a Special State territory, joining the European Economic Community under the United Kingdom in 1973. Despite its membership, Gibraltar is not subject to the same taxation requirements as other members. As a result, the territory has no capital gains tax, wealth tax, sales tax or value added tax. Non-resident businesses do not pay income tax unless the sources of this income are Gibraltar proper, and there is no tax on capital income. This plethora of “tax-free” conditions has made international trade a large player in the Gibraltarian economy, as non-resident companies can take advantage of such regimes to reduce taxation.

With recent Brexit developments, however, a debate over Gibraltar’s continued status as a member of the EU has arisen. Over 96 percent of the territory’s population voted to remain in a referendum held in June 2016 on the issue of continued EU membership. Since the referendum, Spain has offered a plan to keep Gibraltar in the EU on the condition that Madrid shares sovereignty over Gibraltar with London. Gibraltarian citizens overwhelmingly rejected the proposal.

Gibraltar currently benefits from the tourism industry and trade with Spain through its membership in the EU. Not only would leaving the EU mean leaving the European common market, a risky move for an extremely dependent territory like Gibraltar, but Spain’s economy would suffer as well. In 2007 alone, Gibraltar imported more than £174 million of goods and services from Spain, excluding petroleum imports, and enabled both Spanish and Gibraltarian frontier workers to earn £82.8 million from within the economy of Gibraltar.

On the surface poverty and hunger in Gibraltar may no longer be major issues of concern, but looming economic policy decisions could drastically change and shape the future of the territory.

– Katherine Wang

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Human Rights in Andorra

Human Rights in AndorraAndorra is a country with a population of around 85,000 and currently has a constitutional parliamentary democracy as its form of government. In recent years, the migrant population in Andorra has dramatically increased. This increase has caused many in the nation to consider the current state of human rights in the country, as in the past they were not ideal for women and religious minorities.

Arrest Procedures
In many countries that suffer from continual human rights violations, one symptom of this suffering takes the form of its citizens being unlawfully arrested. Andorra has laws that require police to have a warrant for an arrest. Also, Andorra police must release detainees after 48 hours if they are not charged with a crime.

Women’s Rights
One way to evaluate human rights in a country is to examine the treatment of women. Andorra was the tenth country to ratify the Istanbul Convention, which targets violence against women and created a plan to fight against domestic abuse. The treaty defines the various methods of violence used against women and prohibits them by law. Thus, human rights in Andorra are on the rise because of its support for women’s rights described in the Istanbul Convention.

Freedom of Speech and Press
The constitution of Andorra states that the country’s citizens have the right to freedom of speech and the press. The restriction of these human rights in Andorra is punishable by law. The Andorran government recognizes how important the collaboration of the press and the government is to ensure the human rights of its citizens.

The Takeaway
The primary markers of human rights are how people are treated in court, how women are treated in society and if the citizens of a country are allowed to practice freedom of speech. The people of Andorra are fortunate to live in a country that guarantees these fundamental rights in their constitution. The continued effort to enforce these laws ensuring human rights in Andorra proves that it is a leader in human rights and an example to other nations.

– Nicholas Beauchamp

Photo: Flickr