Tag Archive for: Global Poverty

Inflammation and stories on global poverty

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Jim Yong Kim’s Revolution Against Poverty

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In order to catalyze radical revolution against global poverty, one group that has long championed the bottom 40 percent of the population in developing countries proposed radical changes to their ambitions.

On October 11 2013, World Bank Group President Jim Yong Kim delivered a speech at the Annual Meetings Plenary in Washington, D.C. stating significant changes in the Group’s bureaucracy. Such changes include cutting annual costs by at least $400 million in the next three years. Kim was also straightforward in the question of staff cutbacks: “You bet. There will be,” he said.

Kim promises that such changes would tighten efficiency and bring the Group’s best talents together to embark on projects that would make the greatest impact on ending world poverty. The World Bank’s clients consist of low-income countries and poor and emerging economies in need of financial assistance and advice in establishing basic infrastructures.

Kim’s speech paid special attention on the reality of 400 million children living in squalor who need the poverty-combating services the Group provides. The image of 400 million children in need, Kim proposes, is more than enough motivation for the Group to strive harder to surpass initial development goals. Kim’s vision for the new World Bank is ambition and innovation in humanitarian efforts.

The current rate of growth of developing countries reveals that world poverty will reduce to 8 percent by 2030. Kim emphasized that the current rate is too slow and is a breeding ground for paralysis and inaction. A faster rate of growth and more demanding goals are at the heart of the World Bank’s future work and projects.

Kim proposed the Group’s new goal of reducing global poverty to 9 percent by 2020 in order to bring the total percentage down to 3 percent by 2030, virtually ending the pandemic within the next two decades.

Kim concluded with a powerful statement: “We are committed to becoming even better, and we will act boldly, without fear. And always we will speak loudly on behalf of the poor and the powerless…Together, we must urgently lift a billion people from extreme poverty…and the whole world’s future for the better.” Other anti-poverty organizations and governmental bodies should use the current mobilizations of the World Bank as inspiration—as a shining example of passionate and bold commitment to ending world poverty.

– Malika Gumpangkum

Sources: World Bank: President Jim Yong Kim Speech, World Bank: Group President Annual Meetings Plenary, Huffington Post
Photo: Foreign Policy

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5 Books about Global Health and Development

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No matter what your political leanings may be, these books cannot help but convince readers of the importance of global development. As you read the anecdotes and arguments presented in these books, remember that only 1 percent of the U.S. budget goes to foreign aid – and change begins with you.

1. Three Cups of Tea by Greg Mortenson

After traveling and mountain-climbing in the Himalayas, Mortenson launched a mission to bring schools and education to children living in remote regions of central Asia. His moving book outlines the importance of local development projects targeted at education, capacity building and sustainability. Through Mortenson’s activism and writing, the Taliban’s hold has been reduced over previously unprotected and disempowered communities.

2. Partner to the Poor by Dr. Paul Farmer

World-renowned doctor, anthropologist and humanitarian Paul Farmer defines the term “structural violence” and explains its connection to global health in this gripping book. Farmer writes about the structural elements of political and social life that systematically undermine access to healthcare in rural Haitian, Rwandan and Peruvian communities. His arguments on political instability’s effect on population compel readers to see the vast impact of foreign policy and aid.

3. The Practice of International Health by Ananya Roy and Daniel Perlman

This book offers a series of personal accounts from physicians and humanitarians providing healthcare around the world. More so than other anecdotes, these stories provide a detailed picture of the logistical and cultural challenges international development projects face. However, rather than discouraging such projects, “The Practice of International Health” demonstrates how such barriers can be overcome in order to achieve remarkable success.

4. Half the Sky by Nicholas Kristof and Sheryl WuDunn

Journalists Kristoff and WuDunn cover a lot of ground in this entertaining and heartbreaking collection of stories. Similar to Mortenson’s work, “Half the Sky” emphasizes the importance of grassroots organizations, illuminating the tireless efforts of individuals in India, China, Afghanistan and Ethiopia on the behalf of women. In the book’s epilogue, Kristoff and WuDunn also provide an extensive list of nonprofits doing amazing work around the world, as well as easy steps for getting involved in female empowerment and global development.

5. Banker to the Poor by Muhammad Yunus

Microfinance has both supporters and critics, but after reading this autobiography by the founder of the Grameen Bank, Muhammad Yunus, readers might find that their opinion has changed. Yunus was awarded the Nobel Peace Prize in 2006 for his work in providing small-value loans to women in rural areas in order to promote economic growth among families and villages.

– Shelly Grimaldi

Sources: GoodReads, Banker to the Poor
Photo: Wishes 4 Life

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What is an NPO?

NPO
A nonprofit organization is an organization that, pursuant to Section 501(c) of the United States Internal Revenue Code, does not retain its surplus revenue as profit. Instead, any surplus money is used to sustain the organization in its execution of a specific goal or set of goals, as designated by its bylaws and charter. In contrast to for-profit organizations, NPOs are largely project-driven ventures as opposed to product-driven ventures.

Before applying to be a 501(c) organization, a board of trustees must be assembled. The board will be committed to governing the execution of the organization’s goals. Once assembled, the board is responsible for drafting a clear and precise set of bylaws outlining the organization’s goals and the ways in which those goals will be pursued.

The bylaws must be recorded and, along with some necessary accounting paperwork (which varies according to different concessions granted by Section 501(c)), submitted to the IRS and the department of the secretary of state where the organization plans to operate in.

Once this paperwork is filed with the state, it may take up to a year for an organization to get approved as a 501(c). Most NPOs use this interim to prepare for launch immediately upon receipt of approval. Much of this time is spent identifying and communicating with potential donors, writing grants and taking other measures to secure funds for when the organization is approved.

Following state approval, a 501(c) organization must adhere to the bylaws it established in order to maintain its tax-exempt status. Its operation is limited by the bylaws it imposed on itself, and its tax-exempt status is contingent upon adherence to those bylaws. If an organization is not working effectively to accomplish its outlined mission, its tax-exemption will be revoked.

Under 501(c) of the Internal Revenue Code, an NPO may receive one of 29 different designations according to its mission. These designations determine what kind of tax exemptions the NPO will receive, as well as the kind of economic activity it is permitted to engage in. These designations are determined by an organization’s goals, the parties it engages with economically, and the recipients of any aid the organization is providing.

Most NPOs involved in the fight against poverty are designated as 501(c)(3)s. By law, a 501(c)(3) falls under one of the following categories: religious, scientific, charitable, educational, literary, public safety, the fostering of international or national amateur sports or the prevention of cruelty to children and animals. Organizations that actively fight against poverty can fall under any number of these categories. As well as tax-exemption, 501(c)(3)s receive reduced postage rates, and are permitted to generate receipts to provide donors with tax write-offs. They are, however, prohibited from participating in any political campaigns.

For an  NPO engaged in the campaign against poverty, transparency is of utmost importance. Strict adherence to bylaws and charter are necessary. If the secretary of state perceives that an organization is straying from its mission, its tax-exempt status will be lost. This renders the organization far less effective in the abolition of poverty. Not only does this cost an organization financially, it costs the world’s poor.

– Matt Berg

Sources: 501c3, Cornell Law, IRS, IRS
Photo: GuideStar,

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5 Facts About SKS Finance

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Originally an NGO formed in 1997, SKS Finance became a for profit company in 2005 when it was incorporated as an non-banking finance company (NBFC). Its mission is to provide low-income households with financial services, primarily in India, but potentially across the globe. Here are five facts about the company:

1. The company’s goal is to use microfinance as a tool for reducing poverty and increasing economic opportunity by providing access to insurance and credit. Loans start at about Rs. 2,000 to Rs. 12,000, or about $44-$260. These loans are typically given to poor women in order to help them expand their businesses. Poor women act as guarantors on each other’s loans, using a group lending model. According to SKS Finance, the loans are collateral-free and have a 99% repayment rate.

2. A variety of financial companies including Axis Bank, Barclays, BNP Paribas, CitiBank, HSBC, South Indian Bank, and ING Bank Vysvya have invested in and partnered with SKS Finance.

3. SKS Finance core values are: customer first, ethics always, and consistent quality. This involves transparency with customers, not offering bribes, and fostering innovation without cutting corners. Currently, the company is in the process of rebranding itself. SKS Finance is focusing on removing ambiguities about the company rather than making many specific changes. This need for rebranding came after founder Vikram Akula’s departure from the company and the upheaval that came with legislation passed in 2010. In the recent legislation, the Andhra Pradesh government sought to regulate the micro finance sector’s practices in terms of loan recovery and interest rate charges.

4. As of June 30 of this year, SKS has 51 LAKHS, and 1255 branches in India. The company has helped people like Ameena Bi set up a small mattress selling shop with her husband and a flower shop with the aid of her father. Currently Ameena earns INR 300 or $6 a day and her husband, Abdul, earns between INR 300 and INR 400, or $8.50, a day, whereas just three years before they were making INR 120 or $2 a day.

5. In 2011, Vikram Akula, the founder of SKS Microfinance, left the company amidst much turmoil. In hopes of an impending return, Akula suggested in September that the company had lost its way again. His statements were similar to the narrative that forced his departure two years ago. While current leadership at SKS is more than reluctant to give Akula any role in the company, he has ties with Biksham Gujja, chairperson of SKS Trust. SKS Trust, the largest shareholders in SKS Finance, nominated Akula for the seat now in dispute. SKS Trust is meant to serve SKS borrowers and acts as the largest shareholder in the company. Various people in the company have different attitudes regarding Akula’s possible return. Some say Akula has not made any attempts to return on his own, others that he has no support, and still others believe Akula’s actions are hostile in nature. Some have said there is a lot of support for Akula, otherwise he wouldn’t have received SKS Trust’s nomination. The effect of this public squabbling on SKS borrowers has yet to be fully realized, but doubts are being raised, especially by those worried about the interests of SKS Finance’s beneficiaries.

– The Borgen Project

Sources: SKS India, Business Standard, Economic Times, Times of India
Photo: Hugedatabase.net

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Birmingham Partnership Walk Raises Money to Fight Global Poverty

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On September 22, 2013, over 2,200 people participated in the Birmingham Partnership Walk in order to raise awareness and money for those around the world living in poverty as well as the organizations that are pledged to help them.

The partnership walk was held at the city’s Railroad Park, and hosted a 5K run, a 1K youth run, a 100-yard dash, and a 3K family walk. Attendees could partake in these events while various groups, such as local marching bands and choirs, entertained the participants. Last year, 1,950 people participated in the partnership walk, raising $300,000. This year’s walk matched that goal.

The annual paternship walk is an event conducted by Aga Khan Foundation USA (AKF USA), which conducts similar Partnership Walks in 10 other cities around the United States. Aga Khan Foundation USA is a nonprofit humanitarian organization that focuses on agriculture, education, healthcare and other forms of development in Africa and Central Asia. All of the money raised at the walks organized by AKF USA goes to fund projects that directly battle global poverty.

Volunteer organizer Salima Mulji remarked that people should consider themselves part of a single global community, and, as such, it is the responsibility of everyone to help those in need. As a native resident of Southeast Asia, Mulji knows the advantages of growing up in the United States. Volunteering with AKF during the partnership walk is her way of giving back.

– Rahul Shah

Sources: ALL Alabama, Partnerships in Action, Alabama 13
Photo: Aga Khan Foundation USA

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How the 10 Richest Countries Could End Poverty

Top Richest Countries International Aid Spending
At last count, there were 193 independent countries in the world. Let’s start by reviewing the top 10 richest countries. Contrary to popular belief, the U.S. is not the richest country in the world; it comes in at seventh place.

  1. Qatar, GDP per capita: $88,222
  2. Luxembourg, GDP per capita: $81,466
  3. Singapore, GPD per capita of: $56,694
  4. Norway, GDP per capita: $51,959
  5. Brunei, GDP per capita: $48,333
  6. United Arab Emirates, GDP per capita: $47,439
  7. United States of America, GDP per capita: $46,860
  8. Hong Kong, GPD per capita: $45,944
  9. Switzerland, GDP per capita: $41,959
  10. Netherlands, GDP per capita: $40,973

So, how are the wealthiest countries in the world combating global poverty?

In 2002, the world’s leaders got serious about ending world poverty. At the International Conference on Financing for Development in Monterrey, Mexico, each country agreed to dedicate 0.7 percent of its national income to international aid. If each of the 22 leading countries were to adhere to this agreement, a total of $200 billion a year would be invested in foreign aid. However, this goal has yet to be reached.

In 2005, the top richest countries in the world committed a total of $106 billion to foreign aid – $119 billion short of the 2002 target.  Each country dedicated an average of only 0.33 percent of their national income to international aid. The U.S. ranked second to last, with an investment of only 0.22 percent. The country in last place, Portugal, dedicated 0.21 percent.

However, there are five countries that have already met or surpassed the 0.7 percent goal. Starting with the largest contribution, they are:

  1. Norway at 0.93 percent
  2. Sweden at 0.92 percent
  3. Luxembourg at 0.87 percent
  4. Netherlands at 0.82 percent
  5. Denmark at 0.81 percent

What is the big deal about .07 percent?

  • This pledge was initiated in 1970 at the General Assembly Resolution, and has been recommitted several times since, the most recent being at the Monterrey conference in 2002.
  • Through this 0.7 percent commitment, world poverty can be halved within our lifetime.
  • If all 22 of the world’s leading countries met the .07 percent goal by 2015, extreme world poverty would end within a generation.
  • 16 of the 22 leading countries have already met or have agreed to meet the 0.7 percent target by no later than 2015. The U.S. is not one of them.

Why is the U.S. trailing behind the fight against global poverty?

Most Americans believe the U.S. contributes 25 percent of our gross national income (GNI) to international aid. In reality, we contribute less than 1 percent. Moreover, most Americans believe the U.S. should combat world hunger through foreign aid efforts.

Americans support investment in foreign aid. As one of the world’s wealthiest and leading countries, we can do better than second to last. It is time our values as Americans are accurately reflected in our national budget. Contact your congressional leaders today to voice your support in investing in foreign aid. Here’s a place to get started: Call Congress.

– Caressa Kruth

Sources: Forbes, United Nations Department of Economic and Social Affairs Division for Sustainable Development, Borgen Project
Photo: The Why of Development

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Why Technology Won’t Solve World Hunger

Technology Won't Solve World Hunger Kids Using Laptop
Ideas for ending world hunger are the subject of deep contention and intrigue. Conversations about how best to go about ending hunger are held among regular people far removed from the international, sociopolitical arena or non-profit sector, as well as among leaders in national governments and conferring minds within the United Nations.

Duncan Green in The Guardian recently reminded the world of the stark contrasts between those who can afford to eat and the nearly 900 million who sleep on empty stomachs. Progressive efforts underway in Ghana and Brazil have seen initiatives such as cash transfers to the impoverished and an increase in minimum wage. These programs have made strides, but in nations like India that are growing exponentially, the government must address the issue.

Of the myriad of ways to eradicate hunger, is technology perhaps a truly viable option at this point? If so, are the contributions made by technology being overlooked as a way to finally solve world hunger, or is technology simply a tool in this case?

Josette Sheeran, blogging for The Huffington Post, seems to think that technology is something of a cure-all for world hunger. She talks of the electronic vouchers used in Palestinian territories that give people greater access to food. The World Food Programme (WFP) is responsible for that, and other projects, such as the one in the Philippines that uses texting to feed workers. People participate in work projects and can collect their payment at participating food shops.

The WFP also uses social media with their WeFeedBack initiative that lets the user online select a favorite food and using a special calculator, can see based on its cost how many children would be fed with it. The calculated amount is what WFP encourages the user to donate.

Not long ago, a lab-grown burger patty was cooked and eaten in view of the public, touted as a way to help save both planet and people. A report from The Atlantic posits that the world already produces enough food to feed a growing global population and that new technology won’t necessarily solve the hunger crisis. Three-dimensional food printers are also a new tech tool being developed, but the report makes the case that in-house food printers won’t be an appliance in every kitchen because regular people cannot figure out the technology.

Why, then, would these technologies work in the emergent world? And, even if labs in emergent nations were capable of mass producing meat, consumption would be limited to the middle class and upper classes.

Sarah Sloat for Pacific Standard cites a 2012 paper by CUNY law student Rebecca Bratspies that says food production has grown inversely proportional to the hungry. Better food distribution will help solve hunger more than technological developments. The feeling, then, is that even with the massive amount of resources available to solve the world hunger crisis, the solutions are not dependent upon increased production.

Technology in food production has proven to increase production, but access is still contingent upon how food is distributed and how easily available it is to those who need it. Getting there may not be an issue of widespread production, but rather individual nations doing what they can to feed citizens.

– David Smith

Sources: The Guardian, The Atlantic
Photo: Huffington Post

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How Diseases Lead to Poverty

How Diseases Lead to Poverty

What causes poverty? When looking at the factors that can lead to poverty in a region, there are many things that could be highlighted. One can look at the government, at conflict, at the lack of natural resources, or at the shortage of quality education in a region. However, poverty in a region is not only caused by conflict or inadequate education, but also by diseases. Increasing health in a region can significantly reduce global poverty, in effective and unexpected ways.

People in developing countries face challenges due to diseases that those in developed nations do not. For instance, in a developing country, someone who gets sick may have to sell their possessions to pay for medicine. Parents, not expecting their children to survive, have more children and spend less on education. Tropical diseases, and other health risks specific to a region limit tourism and foreign direct investment, affecting the potential prosperity of a nation.

According to research done in 2011 by The Foundation for AIDS Research (amfAR), more than two-thirds of all people living with AIDS (23 million) lived in sub-Saharan Africa. An estimated 1.2 million people died from the disease, accounting for 71 percent of all the AIDS related deaths in the world. Not surprisingly, sub-Saharan Africa is also one of the poorest regions in the world.

But while the problem of AIDS – and the poverty it causes – might seem insurmountable, it only takes around $100 a year to save one AIDS victim.  To put this amount in perspective: the United States spends roughly $600 billion annually on its military, nearly twice as much as the second highest spender, China.  How different would the world be if the United States decided to trim the amount it spends on its military, and use that to help other countries eradicate diseases?

People from poor countries need help to get healthier. Unfortunately, most developing countries simply do not have the resources to provide healthcare for their people. The richer nations need to make an involved effort in helping these countries eradicate diseases such as AIDS and malaria. By increasing the amount of aid that the United States and other developed nations give to combat diseases, the world will see a decrease in death from preventable diseases, and, as a result, a decrease in global poverty.

– Travis Whinery

Sources: WHO, UN AIDS, Economist
Photo: China Daily

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Could GMO’s Help Prevent Food Shortages?

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With the world population expected to double by 2050, food security will continue to be an increasingly complicated and important issue. More food will be needed to feed more people and, to preserve vital biodiversity sites, we’ll need to produce this additional food using land already devoted to agriculture. While there are many factors that could improve agricultural efficiency, genetically modified crops hold the most potential. Many scientists now believe that transgenic plants could help prevent or minimize future food shortages.

Transgenic plants are those that possess an inserted portion of DNA either from a different member of their own species or from an entirely different species. The inserted DNA serves some special purpose, such as allowing the plant to produce natural insecticides. Once the genes are transferred, they can be passed on to offspring through simple fertilization, allowing farmers to breed advantageous traits in their plants. Transgenic plants have proven extremely profitable in the developed world, accounting for a 5% to 10% increase in productivity, and reducing the cost of herbicides and insecticides.

Such methods could effectively increase productivity in the developing world, where a surge in food production is sorely needed. Developing countries, especially those in the tropics and subtropics, suffer severe crop losses due to pests, diseases, and poor soil conditions. In addition, a lack of financial capital often prevents farmers from investing in high quality seeds, insecticides, and fertilizers. Poor post-harvest conditions such as inadequate storage facilities and thriving fungi and insect populations also fuel crop loss. Currently, pests destroy over half the world’s crop production. Transgenic plants could provide an innovative solution.

Fortunately, bioengineering solutions can be easily adapted from one species to another, allowing one advancement in plant biotechnology to quickly produce many more. For example, insect-resistant strains of several important plant species have been produced using one specific endotoxin. Commercial production of insect-resistant maize, potato, and cotton has already begun. Plant bioengineers hope to use similar technology to create fruits that ripen more slowly, allowing for longer shelf lives and less post-harvest crop loss.

It is important to note that this technology has mostly been established with the developed world in mind. Therefore, adapting it for use in the developing world must be done carefully. For instance, many crops grown in the developing world are local varieties and have not been extensively tested thus far by plant bioengineers. Blindly replacing local crops with bioengineered varieties from the developed world could disturb deep social or religious traditions that are represented in the widely varied cultures in the developing world. Additionally, societies are more likely to embrace a familiar crop than a foreign one. Research and development in bioengineering must, therefore, adapt to include the crops of the developing world.

Although the globe produces enough food for everyone, people everywhere continue to die of starvation. With this unequal distribution in mind, it is imperative that, moving forward, small farmers in the developing world receive the same access to plant biotechnology given to large agribusinesses in the developed world. First-world corporations cannot be granted even more unfair advantages over small landholders in poorer nations, especially as global populations grow and food security becomes ever more scarce and important. As this technology is developed, it is up to us to share it with the developing world in order to minimize severe food shortages in the years to come.

– Katie Fullerton

Sources: Plant Physiology, Colorado State University
Photo: Tree Hugger

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5 Ways to Make Your Workout Fight Poverty

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We all know working out is good for us. It makes you feel good and improves your health. But what if your workout could fight poverty as well? Sound too good to be true? It’s not! Here are 5 ways that you can help end poverty with your workout:

1) Charity Miles: This free app will track how many miles you run, walk, or bike and sponsor your efforts. For every mile you run or walk, they’ll donate a quarter, while a mile biking translates to a dime for charity. When you’re done with your workout, you share your success on a social media site and they send the money to a charity of your choice!

2) Run For Charity: This website will help you find a charity to run for. Charity runners use their training and hard work to raise money for the charity of their choice. Charities are extremely supportive of their runners, providing help with registration, training, and fundraising. Some will even have race day events for their runners. This is a great opportunity for runners to put all those miles to good use.

3) Plus 3 Network: This network was created by four guys who wanted to encourage people to get out and ride their bikes more. It has since grown to include all forms of exercise, which you can log on their website. You earn money for charity by logging your activity, so you feel even better about that yoga class or walk around the block.

4) Eco-Friendly Workout Gear: You show yourself some love by working out and staying healthy. Show the earth some love, too, by purchasing eco-friendly workout gear. Be sure to buy your shoes, socks, and clothing from eco-friendly companies like Montrail (shoes), Teko (socks), or Patagonia (clothing). Using reusable water bottles will keep plastic ones out of landfills and save you money. You can also look for secondhand fitness supplies, like weights, treadmills, and exercise balls to cut down on waste.

5) Donate Your Old Workout Gear: That fitness equipment that you just don’t use anymore could help someone else lead a healthier life. You can donate old sports balls, shoes, cleats, and the like to Sports Gifts, which redistributes old workout gear to underprivileged kids. Old tennis balls can go to Rebounces, which restores them and resells them as practice balls, saving space in our landfills. Your old orthotics that helped you get back to the activities you love can be given to Rebounces’ philanthropic organization, Joni and Friends. The nonprofit will give the equipment to disabled or injured people in the developing world.

– Katie Fullerton

Sources: Charity Miles, Plus 3 Network, SparkPeople, Oprah
Photo: DX Foundation