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Iran's ImpoverishedIn the past decade, Iran’s impoverished have floundered due to an overwhelming bombardment of economic sanctions. Documented human rights violations and insincere promises to slow its uranium enrichment program have garnered the Iranian state’s pariah status. Iran’s tumultuous relationship with the West has only worsened following President Trump’s decision to abandon the multilateral nuclear agreement and impose harsher sanctions in 2018. Forced to pay the price of their government’s politics, Iranians have found themselves virtually isolated from the West. With the potential lifting of sanctions, hope is on the horizon for impoverished Iranians.

Potential Lifting of Sanctions

Iran’s reintegration into the international economy may be coming sooner than expected as the Biden administration has made concerted efforts to restore the nuclear deal and implement some stability in the region. Following initial negotiations, Iranian chief of staff Mahmoud Vaezi proclaimed to state media that more than 1,000 sanctions would be lifted. “An agreement has been reached to remove all insurance, oil and shipping sanctions that were imposed by Trump,” said Vaezi on June 23, 2021. With the lifting of sanctions, Iran’s impoverished will see their economic outlooks drastically improve.

Loss of Jobs

While U.S. sanctions are intended to target the hardliner regime, Iran’s most marginalized communities have paid the biggest price. Iran’s energy, shipping and financial sectors have been completely stifled, causing essentially all foreign investment to dry up. President Trump explained that the strict sanctions “intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue.” Since 2018, Iran’s gross domestic product (GDP) has shrunk by nearly 15%. In addition, the unemployment rate has risen to nearly 20%. Unsurprisingly, the IMF reported zero growth in Iran’s economy in 2020.

Economic Downturn

The stagnancy of the economy can be felt everywhere, most notably in the rapid devaluation of the Iranian currency. The reinstatement of sanctions in 2018 has caused the Iranian currency to lose 50% of its value against the U.S. dollar. As a result, the rial (the Iranian dollar) is increasingly worthless. The effects of such extreme inflation have been disastrous, to say the least.

While the regime and its key supporters have been able to subsist due to rampant corruption, Iran’s most impoverished citizens have not been so fortunate. In Tehran, it is commonplace for the children of Iran’s impoverished to wait in a government-subsidized queue for free food. Parents simply cannot afford to feed their children at home due to the rapid increase in daily costs.

The costs of essential items such as meat and vegetables have more than doubled. Equally concerning, the price of healthcare has skyrocketed. Iran’s impoverished have no resources to access affordable healthcare, unable to pay the rising medical prices for tests. Even the prices of tobacco have increased by nearly 80%.

Reactions to Vaezi’s Claim

Understandably, Iranians were ecstatic upon hearing Vaezi’s claim that the infamous sanctions would be brought to an end. However, the U.S. has since denied that an official agreement has been reached. An unnamed spokesperson for the U.S. has emphasized that “During negotiations of this complexity, negotiators try to draft text that captures the main issues, but again, nothing is agreed until everything is agreed.” While there is still work to do, it seems that the conversation between the two countries is headed in the right direction, bringing the hope of reduced poverty in Iran.

– Conor Green
Photo: Flickr

Uganda’s Economic Recovery
Uganda, like many other global nations, is battling the economic consequences of the COVID-19 pandemic. The pandemic reversed a decade of economic progress for the country. On June 28, 2021, the executive board of the International Monetary Fund (IMF) approved a $1 billion Extended Credit Facility (ECF) arrangement for Uganda’s economic recovery in a critical time of need.

COVID-19’s Impact on Uganda’s Economy

According to the World Bank, Uganda’s real GDP grew less than half as much in 2020 than in the year before. A four-month nationwide lockdown deterred the economic activity of the industrial and service sectors. The country’s COVID-19 lockdown forced company closures and permanent layoffs, especially in the industry and services sectors. Many informal jobs were impacted, leading to a reliance on farming for income creation and food security.

A Rise in Child Labor

A 69-page report by the Human Rights Watch and the Initiative for Social and Economic Rights explains that many families’ household incomes dropped due to the pandemic’s effects. Furthermore, with schools shut down, the burden of decreased income fell on many children. Child labor surged as many children as young as 8 years old had to work in hazardous conditions in order to provide for their families.

Nearly half of the Ugandan children interviewed in the report worked at least 10 hours a day, sometimes every day of the week. Some children even reported working as much as 16 hours a day. Most of the children only earned a meager $2 a day while subject to dangerous work conditions. Children in agriculture were injured by sharp tools used in fieldwork and “the sharp edges of sugarcane stalks.”

Other children working in quarries “suffered injuries from flying stones.” Many children also reported violence, harassment and pay theft during their employment. Many employers try to exploit child labor and maximize production. Due to these circumstances, Human Rights Watch asserts that part of Uganda’s economic recovery must include targeted assistance to households with children.

Funding From the IMF

The three-year loan approved by the board under the ECF includes the immediate disbursement of $258 million for much-needed budget support. The disbursement follows the $491.5 million release of emergency funds in May 2020 to support the post-pandemic recovery of Uganda. In an effort to strengthen Uganda’s economic recovery, authorities seek to increase household income throughout the country. Authorities are encouraging inclusive growth by investing in the development of the private sector and enacting reforms in the public sector.

Uganda’s Economic Outlook

Uganda seeks to combat its financing issues as it goes forward. Hopefully, the crucial aid from the IMF will help create jobs by investing back into the industrial and service sectors. Also, the financing aid may help children return to school as parents find new work. Economic growth in 2021 and 2022 is estimated to climb to 4.3% before reaching pre-pandemic levels of growth. While some industries such as tourism may remain subdued for a while, other sectors such as “manufacturing, construction and retail and wholesale trade” expect to rebound in 2021. However, Uganda’s economic recovery is currently still tenuous. The government will need to tread carefully as the economy remains vulnerable to the effects of COVID-19.

– Gene Kang
Photo: Flickr

alleviate Elderly Poverty in GreeceIn December 2020, Trade Economics reported that 13.20% of Greeks older than 65 are vulnerable to poverty. Poor economic conditions in Greece during the past decade resulted in declining wages for citizens in their early 50s. Many believed they would be in a better financial situation by retiring early, especially since pension benefits for Greeks are higher than in other EU member countries. However, elderly poverty in Greece is on the rise. According to Reuters, Greece has a larger older population, and therefore, a rise in early retirements hurt its economy. As a result, the government reduced retirement benefits to help keep people in the workforce for longer. However, the reduction in retirement benefits and additional taxes imposed contributed to higher elderly poverty rates. Organizations aim to alleviate elderly poverty in Greece.

Efforts to Alleviate Elderly Poverty in Greece

In The Guardian, Jon Henley reported in 2015 that 45% of retired Greek senior citizens lived in poverty. Unemployment rates were high among the older and younger populations. Therefore, many elderly citizens had to contribute to their family finances, which negatively impacted their own finances. According to The National Herald, 75% of retired Greeks struggled to pay for food and afford medical expenses in 2017.

Desmos, a nonprofit organization, helped provide financial aid, including food, to those experiencing elderly poverty in Greece. As of 2018, Desmos was able to assist 2,000 older people and provide charities with other essentials to help more people. That same year, Trading Economics announced that the elderly poverty rates in Greece were at 11.6%. This is its lowest rate in the past decade.

Programs Assisting Those in Need

Other organizations and the government have stepped in to help alleviate elderly poverty in Greece. In her article for the Huffington Post, Danae Leivada introduced Life Line, a nonprofit offering food services to those experiencing elderly poverty in Greece. Life Line began assisting elderly citizens in 2011 and has been able to serve up to 900 people a month. Life Line includes a service operating 24 hours a day to those who are in urgent need of food.

Leivada introduced another NGO called 50+, which relies on funding from the EU and has been operating since 2005. This organization advocates for the rights of senior citizens. It also provided resources to help them become more active in society. In addition, 50+ also advocates for a domestic policy to address and prevent elderly poverty.

Pension Issues

According to the European Neighborhood Instrument Cross-Border Cooperation Med Program (ENI CBC MED), the government offers financial aid to senior citizens that do not receive pension benefits or insurance and have a financial need. The financial aid also includes assistance with rent to those who cannot afford housing. Also, the Department of Social Insurance and Control offers financial assistance to those with underlying health conditions.

The ENI CBC MED indicated that retired citizens who are 67 and older and previously worked in the agriculture industry can receive a pension from the Agricultural Insurance Organization (OGA). OGA has provided pensions since 1961 but has changed eligibility requirements on numerous occasions. The current requirements are that senior citizens must show that they have a financial need and do not have insurance.

The ENI CBC MED mentioned that the state does not provide financial assistance to elderly care centers. However, the state has two public programs that provide services to senior citizens. One of these programs offers facilities that operate as an elderly daycare, looking after the older population and assisting them with their needs.

Taking Back Their Pensions

According to Pension Funds Online, the retirement benefits Greeks receive depend on whether they worked for the government, private companies or freelanced. The benefits senior citizens can currently obtain are a contribution rate and an additional pension. The Associated Press reported that the government initially intended to continue reducing the number of retirement benefits beginning in 2019 to focus on paying off its debt but decided not to do so.

ABC News stated that in July 2020, many retired Greeks took the matter to a higher court. The court evaluated whether the 2015 government reduction of retirement benefits was legal. The court ultimately determined that the pension benefit cuts were unconstitutional because the government did not use the appropriate legislative process necessary to implement such measures.

The court even determined that the government needed to reimburse citizens for the reduced pension benefits, but did not indicate whether all retired Greeks or just the appealers of the case would receive the money back. The government shared that it would evaluate the court’s decision before deciding how it would reimburse benefits.

The Effect of COVID-19

According to the ENI CBC MED, Greece went on lockdown for the first months of the COVID-19 pandemic. As a result, various organizations created online systems to help look after the elderly. These organizations also allowed senior citizens to call when in need of food and medicine.

According to Reuters, the International Monetary Fund (IMF) stated that Greece’s strong response to COVID-19 helped put the country in better financial standing in 2021. The IMF also projects that Greece may experience further economic growth in 2021.

The Greek government has implemented public programs and measures to help alleviate elderly poverty in Greece. Greece’s recent economic recovery and the court’s decision to uphold rights to pension benefits serve as indicators that things could continue to improve, both for senior citizens and Greece as a whole.

Cristina Velaz
Photo: Flickr

Lebanon’s economic crisisAn unprecedented economic crisis has gripped the nation of Lebanon for the last 18 months. Years of political instability propelled Lebanon’s economic crisis, however, 2020 worsened its struggling economy through two events: first, the COVID-19 Pandemic that asphyxiated economies worldwide and, second, the massive explosion in the Port of Beirut that detonated in early August. These two disastrous, high fatality events transformed a dire situation into Lebanon’s economic crisis.

The Crisis Reaches New Heights

Last year, Lebanon saw a surge in inflation rates accompanied by sharp spikes in poverty. As the crisis reached new heights, central banks stopped lending money to medium and small businesses. This decision increased an already harsh situation for working-class people in Lebanon. The World Bank estimates that over half of the nation’s population possibly lives below the poverty line. Access to food, water and other staples have become dangerously restricted for those most affected by this economic crisis.

The consequences of the Beirut blast reached national proportions for Lebanon. The level of urban reconstruction needed to repair the damaged portions of Beirut has added a significant strain on the other infrastructural demands. Services that have been affected include access to a consistent electrical grid and waste management system. On a local level, the blast devastated the immediate surroundings and the cost of reconstruction has mounted to several billion dollars.

International Aid for Lebanon

International groups launched a fundraiser for an aid initiative in December of 2020. These groups created an outline for recovery and a restructuring Lebanon’s financial sector to combat constricting debt and financial insecurity. However, The World Bank emphasizes the need to bolster Lebanon’s internal financial sectors to achieve economic stability. With this in mind, Lebanon will require international assistance to reach these goals.

Civil and Political Unrest

Before the Pandemic, Lebanon’s economic woes were entangled within a collapsing central banking system. Overloaded with debt and inflated liquidity, the central bank shut down, effectively denying the majority of Lebanon’s working-class access to bank loans and financial services. The collapse of the financial sector plunged swaths of Lebanon’s population below the poverty line. Demonstrations and other forms of civil unrest stretched security forces thin and established a new norm of chaos. In the midst of the social upheaval, the government fell apart, dashing hopes for a centralized internal reconstruction of the nation’s economy and infrastructure.

Political analysts blame both the country’s central bank and the Hezbollah party for the roots of the economic crisis. Furthermore, analysts insist that a solution cannot be implemented until both of these problems are addressed. Despite the current political instability of Lebanon and its failed efforts to reform its government, analysts fear that the nation may descend deeper into political division. If the structure of Lebanon’s government deteriorates to the point that a power vacuum becomes available, extremist groups will take advantage, which demonstrates a grave risk to global security.

Lebanon’s Future

As the political vacuum occupying Lebanon’s center persists, the nation looks ahead towards elections in 2022. The future of Lebanon relies on the consensus of multiple political factions. This could prove a tedious situation. Such mediation would weigh the fragile balance of international intrusion, whether from the International Monetary Fund (IMF) or political incentives from the United States or Iran. The likeliest path for Lebanon will include a series of shortterm stabilization efforts that will impede the rate of economic collapse and look towards shoring up Lebanon’s financial sector. However, the longterm vision of Lebanon is still a matter of deep contention.

– Jack Thayer
Photo: Flickr

Construction sector in Côte d'IvoireIvory Coast, also known as Côte d’Ivoire, is a country located in West Africa. Although it is mostly known as the largest producer and exporter of cocoa globally, another successful industry is emerging in the country. As of 2019, the construction sector in Côte d’Ivoire accounts for 10% of the workforce, making it the third-largest source of employment. This sector has contributed to economic expansion since 2012. The COVID-19 pandemic may have stunted the growth of this sector, but it is expected to grow at least 6% once the country resumes normal conditions.

5 Key Facts About the Construction Sector in Côte d’Ivoire

1. Growth of the Sector: In 2011, the transportation sector became a priority, increasing the need for the construction sector. Spurred by public investment in roads and urban areas, construction saw major growth in GDP from 2015-2018. Through the years, more local companies have gotten involved. An increase in funding will allow the sector to continue its growth before the COVID-19 pandemic.

2. Impact of COVID-19: Construction became more difficult due to the pandemic. An increase in health regulations, a decline in access to supplies and lockdown all stunted the construction sector’s growth. However, Ivory Coast was able to slow the economic impact of COVID-19. Not only did the International Monetary Fund (IMF) assist them with a financial package, but the country’s economic diversification and government’s effective emergency spending plan also helped them become one of the few Sub-Saharan African countries to continue to achieve economic growth.

3. Global Assistance: The growth of the construction sector in Côte d’Ivoire has resulted in much global interest. In fact, many businesses in China have funded construction projects in the Ivory Coast, such as a hydroelectric dam in Soubré and a motorway in Abidjan. There are many projects still in development, including three stadiums for the 2023 Africa Cup of Nations.

4. National Development Plan: The country’s new National Development Plan 2021-2025 intends to strengthen infrastructure development, which will help the construction sector’s growth. This agenda will also help increase exports and public investment.

5. Impact on Poverty: Ivory Coast has a high poverty rate despite its economic growth. As of 2020, the country’s poverty rate is at least 45%. If the construction sector continues its growth and increase in GDP, local construction projects will help develop an influx of jobs. As a result, the economy will continue to grow and help lower these rates of poverty.

Interweave Solutions

The nonprofit organization Interweave Solutions focuses on different sectors of a country. Their Masters of Business in the Streets, Literacy and Success Ambassador Programs allow for an increase in business understanding to improve homes and communities. By linking these three areas, this nonprofit works to increase self-reliance and lower poverty levels. This nonprofit wants citizens to have the ability to achieve a higher income by participating in these programs.

Ivory Coast’s construction sector will benefit from this nonprofit due to its unification of businesses and communities. The construction industry grew in GDP due to public investment, so Interweave Solutions’ focus on community involvement will continue to help the sector grow. The nonprofit’s focus on reducing poverty levels will help the country’s economy and help the GDP of the construction sector. The emerging construction sector of Ivory Coast has expanded over the years. Conclusively, The pandemic only serves as a roadblock for this construction’s economic growth.

– Mia Banuelos
Photo: Flickr

Economic Growth in 2020
“Everyone is growing.” At the end of 2019, this was the World Bank’s outlook of the economic trajectory for the year 2020. The global economy was steadily growing and strengthening, and only a select few countries were facing GDP and economic contractions. Here is a look at the countries that experienced economic growth in 2020.

COVID-19’s Impact on the Economy

At the end of 2020, the World Bank sang a much different tune than what it did at the end of 2019. After the onset of a global pandemic, the majority of the world’s economies have taken a turn for the worst, the year turning out to be one of the worst in terms of economic growth and development. A far cry from the projected global GDP growth of 2.5%, as in June 2020, the International Monetary Fund (IMF) predicted that the world would close out the year with a GDP growth rate of -4.9%.

For some countries such as Spain, the U.K. and Tunisia, economic growth in 2020 had already fallen by around 20% by the year’s second quarter compared to the same period of 2019, a record quarterly fall for many countries. In other countries such as Taiwan, Finland, Lithuania and South Korea, the economic impact was much less than 5% contractions in GDP.

However, while the problem of economic recession was common for most nations, there were a select few that were not only able to ward off a negative growth pattern but steadily grew in the face of a global crisis. According to reports from the International Monetary Fund (IMF), in October 2020, only 16 countries would sustain economic growth in 2020 of more than 1%, and 11 would grow at a rate between zero and 1%. That leaves a whopping 167 nations facing economic contraction.

5 Countries that Experienced the Highest Economic Growth in 2020

  1. Guyana: Guyana currently has the fastest growing economy globally, with an economic growth rate of approximately 26.21% in 2020. The mainland country serves as home to one of the most promising newly discovered oil basins globally and a vast supply of other natural resources. The recent oil discoveries and new production began in late 2019. Guyana’s economy is expanding fast and expects the GDP to more than double by 2025. Therefore, while it is likely that the Guyanese economy did face setbacks due to the COVID-19 pandemic, the explosion of its oil industry has been able to keep the country’s economy heading in the right direction.
    2. South Sudan: After facing stunted economic growth in the 2010s due to civil unrest, the relatively newly independent South Sudan faced harsh humanitarian and food insecurity crises. However, in 2018, the country signed a new peace agreement, followed by the reopening of many of its oil wells, boosting its main revenue source. Between 2018 and 2019, the country gradually maneuvered itself back into a steady growth pattern that maintained a 4.11% growth in GDP in 2020.
    3. Bangladesh: Over the years 2016 to 2020, the Bangladesh economy has recorded a 7.6% growth in GDP. Such rapid expansion has allowed the country to graduate from the U.N.’s list of Least Developed Countries (LDC). Because of its now stable macroeconomic environment, buoyant domestic demand and export-oriented industry-led growth, Bangladesh has been able to maintain an approximate 5.2% growth rate during 2020, with predictions that it will see an increasing growth rate of 6.8% in 2021 and the coming years.
    4. Egypt: Similar to Guyana, the Egyptian economy has recently benefitted greatly from lucrative natural gas discoveries. Though the pandemic and global economic crisis hit the country’s economic growth in 2020 due to a sudden fall in tourism, remittances and exports, its previous main sources of income, the revenue from its oil discoveries, was enough to stabilize growth in the economy. Already, the Egyptian economy is on the path to recovery with a projected 2.76% growth in 2021, before returning to its previous growth levels averaging at 5.28% in the coming years.
    5. Benin: Due to intentional and effective key economic and structural reforms in recent years, Benin reached a growth rate of 6.41% between the years 2017 and 2019. Therefore, while economic activity did slow for the country heavily dependent on re-export and transit trade, it was able to sustain economic growth in 2020 at a rate of approximately 2%. As the world adapts to and moves towards the end of the pandemic and global economic crisis, expectations have determined that Benin’s economy will return to faster growth rates of around 5% to 7% in the upcoming years.

Looking Forward

It was low- and middle-income emerging economies that were better able to sustain a growth trajectory throughout the 2020 global economic crisis. In fact, China, which the COVID-19 pandemic hit first, has been the only trillion-dollar economy that sustained positive economic growth in 2020. Economic growth is crucial for reducing and eradicating poverty and can lead to social improvements in affected countries. Therefore, the hope is that the countries that are not on the above list will return to pre-pandemic growth rates, and the five fastest-growing nations of 2020 keep developing at this level.

– Rebecca Harris
Photo: Flickr

Livelihoods in Brunei are ImprovingBrunei is an independent Islamic sultanate on the northern coast of the island of Borneo in Southeast Asia. Some statistics about the country still remain unknown like the percentage of Bruneians that live in poverty. This is due to the fact that Brunei still does not have a poverty line as of 2018. However, one can use other means to measure Brunei’s poverty. Additionally, other data can help ascertain whether or not livelihoods in Brunei are improving their unquantified impoverished situations.

One way to look at this is the Economic Freedom Index Score (EFIS). One can think of this as Bruneians’ freedom of choice as well as their ability to acquire and use goods. Brunei’s EFIS is 66.6, and it ranks 61 out of 180 countries. Singapore, the top country, comes in at 89.4, making it the world’s most free economy in the 2020 Index. Then there is North Korea, the bottom country, which has a score of 4.2. Despite Brunei’s moderate EFIS score, the country is working to boost that number. Here are three ways livelihoods in Brunei are improving.

1. Self-Empowerment Initiatives

His Majesty Sultan Haji Hassanal Bolkiah says Brunei has drafted “self-empowerment initiatives” to create more job and entrepreneurship freedoms. Oil and gas production supply 90% of government revenue and 90% of exports. However, these industries have limited job opportunities.

Now, the country strives for economic diversification to reduce reliance on oil and gas. To support these endeavors, the administration will simplify the processes to start a business and develop business regulations. The most significant changes were amending certain laws allowing businesses and investors to operate without a license and reducing the wait times for a business to open.

2. Employment

Unemployment rates — regardless of education level — are high. Although, Bruneians with a vocational background have the highest rates of unemployment. The youth are also at risk of higher rates of unemployment. According to the International Monetary Fund (IMF), the unemployment rate among young Brunei increased from 25.3% to 28.9% in 2019 — the Association of Southeast Asian Nations (ASEAN) was the highest percentage.

A suggestion from the IMF is to invest in technology and digitalization to capitalize on the tech-savvy generation. Also, the Manpower Planning Council is setting up a labor-management information system to lower unemployment among college graduates. This will be a cooperation between government agencies, the private sector and education institutions to ensure the turnout of employable graduates.

3. Welfare

The Sultan also says that people’s welfare is of utmost importance. This assertion stems from taqwa, the basic Islamic principle of God-consciousness together with brotherhood, equality, fairness and justice. This concept is the basis of true Islamic societies.

With this in mind, livelihoods in Brunei are improving by adjusting the financial aid requirements. This effort attempts to lift benefit recipients out of poverty and continue to provide assistance to citizens who need it. With these new rules, the government will be able to map welfare recipients and learn where there is a need to advance workforce skills and job opportunities. The implementation of this new system is more important than ever before due to COVID-19 and an expected increase of benefit recipients. Now, however, Brunei authorities can better prepare themselves to leave no one behind, per taqwa.

Overall, livelihoods in Brunei are improving. The administration has focused itself on economic diversification to be less reliant on oil and gas. The unemployment rate has increased, but the country is undergoing steps to combat that with education and jobs. Also, Brunei is updating welfare programs to include further applicant information. This will assist in financial help as well as learning where education or job options are a factor in poverty.

These changes could create a cycle of prosperity and bring more Bruneians out of poverty. However, Brunei needs to create a poverty line. That way, it can more accurately assess its poverty situation and how much progress it still needs.

Heather Babka
Photo: Flickr

election in malawiThe people of Malawi went to the polls in May 2019 eager to make their voices heard.  Due to some electoral static, however, the world only recently received their message. Marred by allegations of impropriety and delayed by legal challenges, a resolution came in June 2020 when the country repeated the election. On June 27, 2020, 13 months following the initial vote, the election in Malawi resulted in Lazarus Chakwera becoming the nation’s next president. Thanks to courageous actions from Malawi’s top court, a nation imperiled by electoral dysfunction has achieved a peaceful transition of power.

The Election in Malawi

Shortly following the initial presidential election in Malawi on May 21, 2019, President Peter Mutharika won by a narrow margin. However, rumors of irregularities in the vote tallies began to cast doubt on the outcome. Of the 5.1 million votes cast, Mutharika won 38.6% of the vote, compared to 35.4% and 20.2% for his closest competitors. The opposition candidates, Lazarus Chakwera of the Malawi Congress Party and Saulos Chilima of the United Transformation Movement, filed a lawsuit. This prompted an investigation of the Malawi Electoral Commission’s (MEC) handling of the election in Malawi. Additionally, the angst from the controversy spilled into the streets, where thousands of citizens engaged in peaceful protests.

Following a protracted investigation, the nation’s constitutional court invalidated the results of the election in Malawi, citing “widespread, systematic and grave” anomalies. In a voluminous report, the five-judge panel cataloged a panoply of suspicious behavior. This ranged from mathematical errors to the use of correction fluid on tallying forms. There were mixed reactions to the court’s surprising decision, as Mutharika retained power while the inquiry took place. In addition, Mutharika decried the decision as “a great miscarriage of justice.” However, others lauded the decision as a powerful demonstration of judicial independence and a hallmark of a functioning democracy.

A Second Chance

The constitutional court’s decision ordered that a new election take place within 150 days of their announcement, which came in February 2020. In June 2020, the Parliament set election day for June 23. Justice Chifundo Kachale oversaw the re-run. Kachale replaced Jane Ansah as chairperson of the MEC following Ansah’s role in the initial vote. Despite the court’s stern ruling, the extent of potential election malfeasance in the initial vote remains unclear.

Leaders of the opposition claimed that correction fluid inflated the vote totals of the incumbent. In their lawsuit, the leaders implicated the MEC. Conversely, the MEC argued the fluid had only been used to alter procedural information, not the vote totals. Luke Tyburski of the Atlantic Council’s Africa Center inspected the actual results sheets, which citizens can access online. Tyburski’s analysis suggests “human error instead of malicious tampering” likely caused the alterations. However, Tyburski suggests that this “does go a long way toward discrediting much of the sensational rhetoric surrounding the vote.” Whether malice or simply human error caused the error, Malawi’s top court felt compelled to clean the slate with a re-run.

Poverty and the Election in Malawi

The judiciary’s choice has broader implications than simply who serves as Malawi’s president. For one, it fortifies the people’s faith in the rule of law. Elections with contested outcomes are not new to Africa. Many leaders hold shambolic votes with impunity, while other electoral disputes cause a descent into chaos or even civil war. What makes the election in Malawi unique is the willingness of its high court to assert itself when warranted. It would have been easy to simply sanctify the initial elections in accordance with the wishes of the president. But the court chose otherwise. Although needing the courts to intervene in the democratic process is far from ideal, it may be necessary to restore the public’s confidence in free and fair elections.

As Malawi relies heavily on foreign assistance, this show of sound governance can only serve as reassurance for Malawi’s benefactors. These include the International Monetary Fund and the World Bank. Additionally, the court’s decision demonstrates to potential trading partners that the nation can be a stable ally. Despite a GDP growth rate of 4% in 2019, the nation’s extreme poverty rate is still around 20%. As such, the international community must see Malawi as deserving of investment and assistance to help lift its people out of poverty. The result of the re-run can do just this.

Looking Forward

When Malawians returned to the polls on June 23, 2020, the international community had a keen eye on the proceedings. This deterred potential bad actors from any hijinks and ensured that the MEC did its due diligence in properly tallying the votes. Chakwera won convincingly, garnering nearly 59% of the vote, and became president. As a result, the people of Malawi won, and democracy was victorious. This is a positive step toward garnering international aid for Malawi and reducing the poverty its citizens face.

Brendan Wade
Photo: Flickr

Innovations in Poverty Eradication in Côte d'Ivoire
Côte d’Ivoire, otherwise known as the Ivory Coast, is a country nestled in the western panhandle of the African continent. Though the country has been war-torn since 2010, Côte d’Ivoire is becoming a vital part of the world economy. Poverty in Côte d’Ivoire affects more than 46% of the population; however, the country is working to provide more jobs, funding and resources for its citizens. Here are five innovations in poverty eradication in Côte d’Ivoire.

Working with World Organizations

The government of Côte d’Ivoire is working with world organizations to help Ivorian citizens. With aid from the World Bank and the International Monetary Fund (IMF), Côte d’Ivoire is supporting economic growth and the eradication of poverty through Results-Based Management (RBM) and the implementation of Poverty Reduction Strategies (PRS).

Within the PRS document established in 2009, government officials outlined multiple poverty eradication goals. Among these goals are greater accessibility to food and healthcare as well as increased job opportunities for men and women.

Another notable organization working alongside the government to eradicate poverty in Côte d’Ivoire is the Sustainable Development Goals Fund (SDGF). This organization seeks to help vulnerable populations, such as women and children, achieve financial stability through training, counseling and education. Specifically, SDGF provides education for women who have dropped out of school or who are looking to generate their own income.

New Strategies for Ending Hunger

Among the innovations in poverty eradication in Côte d’Ivoire is adopting new strategies for ending hunger. In 2016, the Côte d’Ivoire government, with help from the World Food Programme (WFP), created a National Development Plan (NDP) to facilitate the country’s transition to becoming a middle-income economy by 2020. With help from WFP, the Ivorian government aims to increase access to food banks and work more closely with other organizations to end malnutrition.

Previously, in 2009, the Ivorian government worked with the IMF and World Bank to establish strategies for ending hunger throughout the country. To achieve this goal, Côte d’Ivoire vowed to modernize storage techniques of fresh produce, make food more widely accessible, increase the production of rice and update health standards for food supply.

Other Avenues for Helping Citizens

In Côte d’Ivoire, the mining sector is undervalued. While the mining industry previously focused on gold, there is an increased interest in nickel, iron and manganese. By expanding geographical data of the land, the mining industry could see vast profit and job increases.

Further, enhancing transportation — public and private — could help citizens escape poverty in Côte d’Ivoire, as well as better integrate the country into the international economy. Allocating more funds to road infrastructure, road maintenance and other modes of transport can facilitate domestic trading. Additionally, it could help individual citizens have better access to basic services and economic opportunities.

Becoming an Active Partner in the Global Market

The 2018-2022 Country Strategy Paper (CSP) suggests that to maintain favorable economic growth, Côte d’Ivoire should attract global investments, employ economic reforms and create more agriculture-industrial chains of supply. With support from the CSP and the World Bank, Côte d’Ivoire will receive loans to reach their economic development goals.

Côte d’Ivoire is further strengthening their economy through investments in the mining and electricity sectors, and by simplifying the start-up process and tax-paying procedure for small businesses.

Mending Gender Disparities Associated with Poverty

While gender inequalities still exist in Côte d’Ivoire, the government is working to make employment and educational opportunities more equal. More than 50% of women in Côte d’Ivoire are uneducated, and 73.7% of women are illiterate. In comparison, only 36% of men receive no education, and 46.7% of men are illiterate. To combat these disparities, funding is set aside for activities that specifically empower women. Further, more women are chosen to participate in important projects, thanks to the Affirmative Finance Action for Women in Africa (AFAWA).

With more concentrated funding in education and the job market, impoverished women can establish themselves in society and regain economic stability. According to the World Bank, it is in the country’s best interest financially to incorporate more women in the job market.

Conclusion

These innovations in poverty eradication in Côte d’Ivoire show the government’s focus on addressing this issue. It is imperative that the country continue to receive funding to incorporate itself into the international economy. By sticking to these strategies and working with world organizations, the government will hopefully be able to eradicate poverty in Côte d’Ivoire.

Danielle Kuzel
Photo: Flickr

homelessness in vietnamWhile the nation of Vietnam has long struggled with poverty, homelessness in Vietnam has been successfully reduced by the government during a period of five years ranging from 2003 to 2008. These efforts have reduced the number of street children by 62%. This accomplishment is partly due to the fact that Vietnam has been aggressively fighting poverty for years. Every year since 2012, the percentage of people who live in poverty has lowered by a range of 4.6% to 6.9%. This effectively cut the percentage of people living in extreme poverty since 2012 in half. This is due largely to the fact that Vietnam has been experiencing massive economic growth in the last decade. In addition, it has been shifting to a market-based economy with a socialistic orientation.

Millions Have Been Lifted Out of Poverty

The country has experienced significant improvement with regards to government openness and transparency, as well as education and human development. Inward investments and focusing on increasing exports have been one of the drivers of this prosperity as well as a focus on reducing poverty in the country. Overall, 30 million people have been lifted out of poverty since 1992. According to a report by the IMF, the government has been investing in housing, education and infrastructure for its vulnerable population, especially ethnic minorities and those who live in remote areas. All of this has contributed to the small percentages of homelessness in Vietnam.

There Are Still Some Challenges

While the numbers are improving for Vietnamese-born homeless children, the population of migrant children is on the rise. It is estimated, in 2006, that the number of these children was around 23,000. Migrant children, according to some reports, are coming from rural areas in Vietnam. They represent a new social phenomenon in Vietnamese society. Many of these children are homeless and their parents use them to generate income. Many of them don’t have identification or any personal papers and are very vulnerable to labor exploitation by those who employ them. Those children cannot attend university or go to the hospital. Sadly, homelessness in Vietnam often exposes them to other risks such as sexual abuse and even certain diseases.

Thankfully, there are those who are working on solutions to tackle homelessness in Vietnam. They are specifically tackling the problem of street children. Do Duy Vi, the Chief Outreach Officer of Blue Dragon Children Foundation, himself used to be a child of the streets. Today he works as a social worker trying to get children off the streets by guiding them to walk the same path he did. He offers them a similar opportunity that he was offered. He helps street children become outreach workers for the Australian funded foundation. During the period of July 1, 2017 to June 30, 2018, the foundation rescued 116 children off the streets and connected 62 of them with their families. It also represented 52 children in child protection cases and provided 107 human trafficking survivors with emergency accommodations. Part of the organization’s job also includes working with government authorities. As such, they helped the 694 government officials become more skilled in countering violations of child rights and trafficking. These are just some of the signs of hope for the destitute in this country.

More Needs To Be Done

It has been reported that 400 organizations and NGOs are helping 15,000 children living in extremely difficult situations. More needs to be done in terms of spreading awareness about the problem and explaining child protection laws that protect youngsters in Vietnam from being exploited for profit.

– Mustafa Ali
Photo: Flickr