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Mental Health in Iceland

Mental Health in Iceland
Despite the beautiful, wintery landscape, Icelandic winters are not all sunshine. In fact, the sun only shines for up to five hours during the deepest winter months. Often, Icelanders wake up for work in the dark and return home in the dark. Similarly, rainy days almost continuously fill the summer months, particularly in the south of Iceland. Daylight and darkness often play a role in mental health in Iceland.

Depression in Iceland

The lack of sunlight during the winter months can contribute to depression, along with other mental disorders, in some Icelanders. According to a 2017 article by Iceland Magazine, around one in 10 Icelanders experience feelings of depression at some point in their lives; in fact, in 2015, Iceland had the fourth-highest depression rate in Europe and the second-highest rate for severe depression symptoms.

Third Happiest Nation in the World

Despite these statistics, according to a 2017 article by Globally Minded, a study by the World Health Organization (WHO) ranked Iceland only 35 in global suicide rankings. Globally Minded, a website for global mental health, attributes Iceland’s relatively low suicide rates to the structure of Icelandic society. In Iceland, communities are close-knit, and thus, “most Icelanders have an obituary written in the main newspaper.” Accordingly, the publicity associated with their cause of death and the stigma of suicide deters most Icelanders from committing suicide.

Contrary to its depression rate rankings in 2015, based on data from 2019 to 2021, Iceland ranked as the third happiest nation in the world in 2022, according to the World Happiness Report. This meteoric rise in the ranks might be due to Iceland’s unique “shotgun method” for the treatment of mental disorders.

The Shotgun Method

As of 2020, out of 26 Organization for Economic Cooperation and Development (OECD) countries, Statista reported that Iceland has the highest consumption rate of antidepressants. Similar to psychiatrists in the U.S. and contrary to those in many other Nordic countries, psychiatrists in Iceland readily prescribe antidepressants to their patients for milder forms of depression or anxiety disorder rather than just severe cases.

In an article that Mad in America published, Icelander Svava Arnardóttir shared her experience with psychiatrists prescribing her psychiatric medications. Over a five-year period, Arnardóttir took up to 16 different psychiatric medications at a time, a practice she described as the “shotgun method.” Arnardóttir claimed that it is common for Icelandic psychiatrists to prescribe their patients a large number of medications at once in the “hope that one of them hits the target.”

Aside from this unique approach, the Icelandic government currently does not fund or subsidize non-medicated forms of psychological therapies. Globally Minded also believes that the population trusts that antidepressants are effective. Thus, many Icelanders choose the most cost-effective method of treatment: antidepressants.

Unfortunately for Arnardóttir, the “shotgun method” was a miss, leaving her to seek alternative help with her own resources. Arnardóttir’s experience is a microcosm of mental health treatment in Iceland; despite the vast use of antidepressants, Iceland has seen “no positive impact on public health.” On the contrary, the rates of psychiatric out-and-in-patient treatment for depression increased.

A Positive Look into the Future

As of 2021, Iceland is allocating close to 12% of its health budget to addressing mental health in Iceland. This is roughly 2% more than the global average for mental health budgets.

Additionally, NGOs are allowing Icelanders to receive mental health treatment that focuses on therapy rather than psychiatric drugs at no personal cost. One such NGO is Hugarafl, which finally provided the mental health help that Arnardóttir needed. Volunteers who have experienced mental health struggles themselves and have vast experience in the mental health care system founded Hugarafl in 2003.

Together the volunteers work toward the common goal to improve the Icelandic mental health care system while dissolving prejudices surrounding mental health challenges and protecting the rights of those suffering. The organization has managed to provide several services, ranging from basic counseling to trauma rehabilitation, for anyone older than the age of 18 without the need for residency, insurance or financial cost. Hugarafl has managed to provide Icelanders with a free and therapy-based alternative to the “shotgun method.”

NGOs, backed by the optimistic budget of the Icelandic government, are allowing a sunnier outlook for the mental health of Icelanders than their weather forecast suggests.

– Lena Maassen
Photo: Unsplash

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COVID-19’s Impact on Romania 

COVID-19’s Impact on Romania 
Romania is one of the most impoverished countries in the European Union. As of 2018, the country had the highest poverty rate in the union, with more than a quarter of the population living on less than $5.50 per day. Poverty has a high concentration in Romania’s rural areas, which contain most of the poverty-stricken population. The COVID-19 pandemic reached Romania relatively late compared to the rest of the European Union. The country identified its first case on February 26, 2020. COVID-19’s impact on Romania was mostly negative, lowering life expectancy and highlighting health care and medical supply disparities. A COVID-19 vaccine campaign began swiftly in Romania, yet momentum was not consistent. Lack of infrastructure for proper vaccine distribution and widespread vaccine misinformation have slowed vaccination rates. As of May 2022, around 43% of the country is fully vaccinated, the second-lowest amount among EU countries.

Government Response

At the pandemic’s start, the Romanian government promptly took measures to combat the COVID-19 pandemic. On March 16, 2020, Romanian president Klaus Iohannis declared a state of emergency and on March 25, the government announced a lockdown. Nearly a month later, on April 14, Romanian authorities extended a 30-day lockdown that lasted until May 14. These actions did not come without backlash – a Romanian citizen even presented a case in protest of the 30-day lockdown to the European Court of Human Rights.

The Romanian government quickly put in motion Romania’s COVID-19 vaccination strategy. According to OECD, the campaign showed priority toward medical workers, putting high-risk members of the population second. The military and certain intelligence services, including the Special Transmission Service, stepped in to help distribute the vaccine.

Vaccination rates started strong. According to Euronews, Romania was among the top three European countries with the highest rates at the beginning of 2021 but fell from grace as numbers began to decline in March of the same year. Vaccine misinformation ran rampant and discouraged citizens from receiving any doses, Euronews reports. The rural areas of Romania lack infrastructure; social services, employment opportunities and health care are hard to find. Due to this, the majority of Romania’s poor are unvaccinated. In response, the European Commission joined Romania in the communication of the vaccination campaign: 40-second videos and 20-second radio ads promoting the vaccine were played on television and radio stations, respectively.

Impact on Health Care System

Battling the COVID-19 pandemic has exposed flaws in the Romanian health care system and led to innovation. The Ministry of Health and the National Health Insurance Fund entirely pay unconditional coverage for COVID-19, according to OECD. Still, not every Romanian citizen has equal access to COVID-19 care. Rural areas are lacking not only health but also general infrastructure and have difficulty benefitting from Ministry of Health actions.

A positive side of COVID-19’s impact on Romania is the creation of multiple online systems to manage health information, which gives more people access to their health data, OECD reported. Additionally, the Romanian government used the European Union’s digital COVID certificate, which is used nationwide to certify whether an individual has been vaccinated, tested negative or recovered from COVID-19.

Again, these benefits of COVID-19’s impact are more present in urban areas of Romania, as around 73% of Romania’s rural areas have access to the internet, while the rate is 87% in urban areas.

Businesses and Workers

Similar to the Ministry of Health, the Romanian government was proactive in enacting policies to support small businesses and workers during the pandemic. It ensured that the financial status of the employer does not affect the employees’ wages, including multiple workplace health and safety measures. The government also released €1 billion in EU grants to benefit Romanian businesses that the pandemic impacted and extended the technical unemployment period from 30 days to a 90-day minimum.

Regardless of the measures that the government enacted, the pandemic caused an increase in unemployment. Business and working families in rural areas of Romania suffered significantly. In Galați County, registered unemployment rose from 10,414 in 2020 to 11,856 in 2021.

Although COVID-19’s impact on Romania took a significant toll on the country, especially its poor, it led to several instances of innovation and swift, beneficial government response.

– Sophie Buibas
Photo: Wikimedia Commons

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Electrification and Energy Expansion in Laos

Electrification and Energy Expansion
Laos, which many know as the Lao People’s Democratic Republic, is the only landlocked country in Southeast Asia, sharing borders with Thailand, China, Myanmar, Cambodia and Vietnam. While Laos is one of the most impoverished countries in the region, its economy has significantly increased in the last 20 years, so much so that, in 2011, the World Bank upgraded the Lao PDR to lower-middle-income status. However, in terms of energy, not all citizens have access to electricity. The country has had difficulty expanding the energy sector due to factors such as “inaccessible terrain,” unexploded ordinances spread throughout the country, especially throughout rural areas, with some of those areas being more difficult to reach and some provinces having low economic growth compared to others. While expansion in the energy sector proves difficult, the Lao PDR has made a commitment to electrification and energy expansion in Laos to allow all its citizens to have access to electricity, especially as various organizations offer suggestions and plans for Laos to reach its energy goals.

The Current Situation

While the use of hydropower has helped Laos electrify the nation, increasing electrification rates from 15% in 1995 to 90% in 2019, around 5% of citizens still do not have access due to remote terrain locations that makes grid expansion difficult. Around 80.3% of rural areas and 97.4% of urban areas have access to electricity as of 2018. In response, the Lao PDR has an overall goal of enabling electricity access for a minimum of 98% of the overall population by 2030.

Observations and Recommendations by Organizations

According to the Center for Strategic and International Studies (CSIS), “in 2019, 80% of all [Laos’] electricity generation came from hydropower.” The CSIS recommends that the nation diversify its energy mix “beyond hydropower,” suggesting that Laos expands into non-hydro renewable energy due to its geographic advantage “for solar photovoltaic, wind and biomass energy” and especially as prices in the sector have diminished over the years.

The Organization for Economic Co-operation and Development (OECD) recognizes that Laos has the potential to develop solar power, especially when many parts of the country are exposed to direct sunlight during the dry season. This would potentially “increase the share of non-hydro renewable energies to 30% of total consumption by 2025.” More than 18,657 households have access to small solar power systems as of 2017 and the Lao PDR has started several larger projects to expand access to solar power systems.

The National Renewable Energy Laboratory (NREL) in partnership with USAID suggests that electrification and energy expansion in Laos through alternative renewable energies can help the country reach its import demands, which would allow Laos to rely less on other countries for electricity. By expanding in renewable energy sources, Laos can “increase electricity exports to regional neighbors to become the ‘battery’ of Southeast Asia” while also meeting domestic demands.

Plans for Electrification and Energy Expansion in Laos

In Laos, around 50 dams underwent construction as of 2020, a process that will allow more access to electricity for citizens. However, while hydropower from dams will provide more access to electricity, this strategy proves controversial, especially with environmental concerns and communities relying on rivers such as the Mekong to live.

In the search for alternative solutions, Laos is in negotiation with the Thai company Impact Energy Asia to build a 600-megawatt wind farm and have it complete by 2023. By developing the energy sector to become “affordable, inclusive and sustainable” while focusing on socio-economic development, the country can move toward achieving its Sustainable Development Goals (SDGs) by 2030.

USAID programs such as the LUNA II Project, implemented from March 2014 through September 2018, help to “promote more sustainable economic policies and a more balanced energy sector” in Laos. The project largely focuses on establishing “trade liberalization” for Lao and “trade capacity building” in both public and private sectors, which will allow improvement of trade and investment. This should allow Laos to expand into alternative, sustainable and renewable energy sources.

Looking Forward

While Laos has made improvements in access to electricity and other resources for the citizenry, this work has not yet reached completion. Fortunately, through suggestions from various organizations and their data collection, Laos is able to offer plans to reach more Laotians. The country stepping up to reach its goals for electrification and energy expansion in Laos will allow the nation to achieve its 2030 energy goals.

– Jerrett Phinney
Photo: Flickr

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The Water Crisis in Spain

Water Crisis in Spain
The water crisis in Spain has come about due to recurring droughts as a result of the effects of extreme weather conditions that contribute to increasing temperatures in the peninsula. In 2019, the Spanish association La Unión de Uniones de Agricultores y Ganaderos faced losses of  €1.5 billion as a consequence of droughts. In the same year, the Spanish Health Ministry discovered that 67,050 samples from different water sources around the peninsula were not safe for drinking.

Uncovering the Water Crisis in Spain

According to an article by The Water Project, in general, a lack of clean water reduces the likelihood of low-income families escaping the cycle of poverty. Illnesses due to the consumption of unsafe water reduce a person’s energy and productivity, which means children cannot attend school and adults cannot work to earn an income.

Within the Castilla y León region of Spain, villagers struggle to access drinking water as agricultural pollution has affected water supplies, deepening the water crisis in Spain. Villagers have to walk to the main city centers to obtain bottled water to complete essential daily activities, such as brushing their teeth and cooking. In Castilla y León, in March 2021, about 63 municipalities did not have “running water.”

Effects of the Water Crisis in Spain

According to research by Kemira, a company dedicated to providing sustainable chemical solutions for water-intensive industries, water reuse is the best way to address the water crisis in Spain. Water reuse, “the use of purified water from municipal sewage treatment plants for different purposes,” can lower the current cost of desalination plants as Spain can recycle water for agricultural use. The OECD has said that around 67% of Spain’s water usage goes toward agriculture, and in Southeastern Spain, water use for agriculture “rises to as much as 85-90%.”

The dire water crisis is visible in the national park of Las Tablas de Daimiel, a wetland that has dried up in the last three years. As a result, many of the aquatic species living in the wetland have disappeared, marking the effects of the Spanish water crisis. In fact, in 2009, “subterranean peat fires broke out” due to the increasingly dry temperatures, decreasing the once 500 kilometers of wetland into 30 kilometers.

An article by The Guardian states the water crisis in Spain began in the 1970s when the Spanish government decided to turn the Spanish cities of Murcia and Almería in the Southeast of Spain — an area where water is minimal and none of the major rivers flow — “into Europe’s market garden.” As a solution to lacking water, the government chose to “transfer water from the headwaters of the Tagus through almost 300km of pipeline to irrigate” the area.

But, this only served to exacerbate “unsustainable intensive agriculture” leading to “the exploitation of groundwater, with disastrous environmental consequences.” In August 2021, in the Mar Menor saltwater lagoon in Murcia, “thousands of dead fish” showed the consequences of unsustainable agriculture and “fertilizer polluting the groundwater that drains into the sea.”

The Government’s Solution

The Spanish government recognized the situation as unsustainable for the country’s future, prompting it to begin a five-year water plan “to conform with the European standards on water quality” that will apply in 2027. Announced in June 2021, Spain’s five-year Hydrological Plan for the period 2022-2027 will “prioritize the uses of water, manage large floods and droughts and define ecological flows that ensure the protection of waters and their ecosystem.”

In addition, the plan includes “reducing the pressures that the water masses support, improving the purification systems, promoting water-saving and reuse and meeting the demands for water in a way that is compatible with its good condition.” The plan also involves cuts in the quantity of water transferred from the Tagus river to the Southeast region of Spain.

As Spain implements the five-year Hydrological Plan, there is hope that the water crisis in Spain will reach a resolution.

– Nuria Diaz
Photo: Max Pixel

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Poverty Among Single Mothers in South Korea

Single Mothers in South Korea
In 2020, South Korea had 1.5 million single-parent households. One factor that impacts this statistic is that gender inequality is a pressing issue in many Asian countries, South Korea included. In 2017, women in South Korea earned 63% less than their male counterparts did, and, according to a 2018 OECD working paper, “16.5% of poor Korean households spend at least 30% of their income on children’s education.” With such inequality and heavy demands on childcare, single mothers in South Korea continue to struggle. This article will explore the difficulties that single mothers in South Korea face.

Education

South Korea’s widening educational inequality pressures families to spend more on their children’s education with private education becoming increasingly important. On average, Korean households pay for roughly 42% of their children’s primary and secondary education in comparison to the OECD average of 22%.

On top of that, Korean households also pay for “Hakwon” or “cramming schools,” which are private tutoring sessions that cost “18% of median household income per student.” As the educational system grows increasingly more competitive, these cramming school costs also increase in importance. For single mothers, particularly unwed mothers, supporting their children through the educational system is difficult as women cannot avoid the social stigma of having children outside of marriage because Korea’s birth registry, which is visible to schools and workplaces, labels their children as extra-marital.

Financial Support

Almost half of women in South Korea did not work in 2017 as many of them left the workforce to raise children. In Korea, more women than men have tertiary education qualifications. In fact, 76% of Korean women between the ages of 25 and 34 “had a tertiary qualification in 2020 compared to 64% of their male peers.” Yet, many women are not part of the labor force and those within the workforce earn significantly less than their male peers.

As one can imagine, single mothers may not have the option of leaving work due to the burden of financial responsibilities falling on them. Furthermore, South Korea’s workplace demands long hours. According to the OECD, in 2018, 71% of working women in South Korea worked at least 40 hours and 17% worked at least 60 hours; both of these averages are significantly higher than the OECD average.

The government also provides little financial support for single-parent families. If a single parent makes less than 1.55 million won ($1,400) per month, the government gives them 200,000 won ($180). Considering that the average monthly income of a Korean household is 4 million won ($3,640), an amount sufficient to cover most costs, the government payment to single mothers does not equate to much. Lastly, single motherhood, particularly for unwed mothers, carries a social stigma that prevents even families from providing support.

Progress

Although the pressing demands on single mothers in South Korea grow, statistics show wins for single-parent households. The educational attainment of impoverished single parents has risen, reducing from a low-level education rate of 40% in 2006 to 23% in 2012. This has led to a rise in these households’ standards of living and disposable income.

For single mothers, particularly those who face the social stigma of being unwed, the Korean Unwed Mothers’ Families Association (KUMFA) aims to create a society in which unwed mothers can raise their children without the social stigma of their situation impacting their lives.

A group of unwed mothers founded KUMFA in 2009 as a place for unwed mothers to meet monthly. Since that time, it has grown into an organization. According to its website, “KUMFA holds camps for each major holiday in Korea in order to provide family environments for moms and children during holiday seasons.” In addition, the organization “also provides educational, advocacy, and counseling support programs for unwed mothers.”

Single mothers in South Korea face the crunch between rising educational costs and low wages for women. On top of that, the social stigma around single motherhood follows them everywhere and embeds itself even in the registration of their children’s births. Despite this, women have shown resilience and KUMFA is a great example of solidarity between those facing the same circumstances.

– Rachael So
Photo: Wikimedia Commons

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5 Facts About Being Poor in Argentina

Being Poor in Argentina
Argentina is the third-largest country in South America with a population of 45.4 million people. A melting pot of ethnicities and a perfect blend between Latin-American and South European customs and traditions. Nevertheless, Argentina has a high poverty rate, rising year after year. Here are five facts about being poor in Argentina.

5 Facts About Being Poor in Argentina

  1. A 3 Year-Long Recession: Argentina’s economic development is following a troubled path risking a new default two years since the last one. This inevitably translated into a rise in the country’s poverty rate that in the second half of last year passed 42%, according to Al Jazeera. Such a rate in Argentina represents an omen to the risk of a new crisis of similar proportions to the ones of 1989 and 2001.
  2. Increase in Unemployment During the COVID-19 Pandemic: The effects of the COVID-19 pandemic had serious repercussions on developing economies like Argentina. As a result, the country counted a loss of 3.5 million jobs in the past two years of the pandemic, leaving many single-income families without a way to get by. This has led to many disorders and protests in the capital city of Buenos Aires that spread in other major cities around the country including Cordoba and Mendoza.
  3. Social Inequality and Poverty: The Organization for Economic Co-Operation and Development (OECD) examined the evolution of inequality and poverty across the decades. Argentina was one of the countries with the highest class inequality and relative poverty rates and from 2001 it made considerable progress in this matter. Unfortunately, those rates still remain high, way over the OECD average. Moreover, inequality in Argentina has strong intergenerational and regional components, meaning that the youngest part of the population is the poorest and the northern regions of the country are the ones with the highest poverty rate.
  4. House Poverty – The Everlasting Problem: Since its first big default in 1989, being poor in Argentina means also facing the house poverty issue caused by people’s inability or even discouragement in saving for long-term investments. The global pandemic has contributed to worsening this condition even more. Currently, almost 10 million people around Argentina are unable to pay their rent and have to move to cities and to nearby areas where they end up in illegal camps. Fortunately, organizations like Habitat for Humanity are working to address this specific problem by building or repairing homes, providing vital skills and providing first-response to all sorts of disasters around the world. As of 2014, Habitat for Humanity has contributed to building housing solutions that are hosting more than 4,000 families in Argentina.
  5. Education: Despite Argentina being one of the most educated countries in South America, its past military government applied a policy restricting access to education at every level. Such a slowdown in the development of the education system has not yet been overcome causing inefficiencies impacting other economic aspects like technological innovation that would support growth.

Concluding Thoughts

This summary is only a brief and partial picture of the much more complex political and socioeconomic situation of a developing country like Argentina. The hope is that these five points can provide an idea of what is like being poor in Argentina and what are the key elements to address to allow the country to free itself from poverty.

– Francesco Gozzo
Photo: Flickr

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Renewable Energy in South Korea

Renewable Energy in South Korea
In 2020, the South Korean Ministry of Trade, Industry and Energy (MOTIE) introduced the 9th Basic Plan for Long-Term Electricity Demand and Supply 2020-2034. In this plan, MOTIE sets a goal for renewable energy in South Korea to account for around 40% of the energy mix by 2034. Impressively, 100% of all South Koreans have access to electricity, however, most of the nation’s energy comes from non-renewable sources, which are not only expensive but are also unsustainable. 

Statistics on Energy in South Korea

In 2021, South Korea’s price of electricity increased “for the first time in around eight years” due to global fuel spikes. In June 2021, South Korea’s cost for energy for its citizens stood at $0.103 ( KRW123.02) per kWh (kilowatt-hour). On September 23, 2021, MOTIE announced that the Korea Electric Power Corporation (Kepco) intends to raise the rate per kWh to KRW3 by October 2021, meaning citizens can expect to pay another $0.88 (KRW1,050) monthly per household.

In comparison, in the United States, energy rates for households in November 2021 stood at $0.1412 per kWh. While South Korea’s energy rates per hour are cheaper, taking into account the vast number of people in Korea and the proportion of the population earning low wages, these rates are still costly. Energy rates could become more affordable with the use of renewable energy.

In 2020, crude oil was responsible for most of South Korea’s energy requirements, covering 35% of the country’s energy demands while coal covered 25% of energy requirements. Renewable energy in South Korea made up 1% of energy in 2020, with gas and nuclear covering the remaining energy needs at 17% and 16% respectively.

South Korea’s Poverty Rates

Between 2018 and 2019, South Korea’s poverty rate stood as the “fourth-highest” across 39 Organization of Economic Cooperation and Development (OECD) member states. This 16.7% poverty rate equates to one in every six Koreans living in relative poverty,  according to the Korean Herald. Korea’s unemployment rates are low, however, many employed citizens do not earn adequate incomes. This, combined with an aging society, contributes to the impoverished circumstances of many households and individuals.

How Renewable Energy Can Reduce Poverty

In 2015, South Korea’s capital city of Seoul implemented the Energy Welfare Public-Private Partnership Program to address issues of energy poverty among impoverished city dwellers. The project constructed a virtual power plant “through which 17 municipal buildings and 16 universities save electricity consumption during peak hours and donate profits from saved power back to the program to finance energy welfare.” The virtual power plant has led to “annual profits of more than $180,000,” which goes to the Seoul Energy Welfare Civic Fund. With this funding, more than 2,000 low-income households received retrofitting of “LED light bulbs, energy-efficient windows and solar panels” to reduce energy costs and harmful greenhouse emissions. The Seoul Energy Welfare Civic Fund also prioritized training the unemployed as community energy consultants, which led to 180 new employment opportunities.

Why Renewable Energy is Important

Renewable energy could increase access to energy for those living in poverty and reduce production costs and the selling price of electricity.

According to the World Economic Forum, in 2020, renewable energy stood as the most affordable energy source and the costs of renewable energy technology continue to reduce each year. According to the International Renewable Energy Agency (IRENA), “emerging economies will save up to $156 billion over the lifespan of the renewable projects added in 2020 alone,” which would help to significantly reduce global poverty.

With South Korea as the “ninth-largest energy consumer in 2019,” the use of renewable energy can reduce the price of energy for citizens living in poverty.

Future of Renewable Energy in South Korea

Renewable energy can make electricity more affordable for all citizens, allowing them to focus finances on other basic necessities, investments and welfare programs. With the future increase of renewable energy, a decrease in air pollution and carbon emissions is also a significant positive benefit.

– Kyle Swingle
Photo: Flickr

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Closing the Gender Wage Gap in Iceland

Gender Wage Gap in IcelandIceland is a small island nation, home to about 366,000 people, situated in the North Atlantic Ocean between Greenland and Norway. Owing partly to its small size, Iceland has become a world leader in various social indicators, such as gender equality and poverty reduction. For the 12th year in a row, Iceland was crowned the most gender-equal country in the world by the World Economic Forum in its 2021 Global Gender Gap Report. Despite this top ranking, it is still necessary to fully close the gender wage gap in Iceland, and in turn, alleviate remaining poverty within the nation.

Poverty in Iceland

The gender wage gap, no matter how small, can have a significant impact on one’s vulnerability to poverty. The gap between the earnings of men and women means that pay cuts, unemployment and economic downturns more dramatically impact women, which can and have historically led to increases in poverty in Iceland.

The poverty rate in Iceland is much lower in comparison to its Nordic neighbors, with about 9% of Icelanders earning an income that falls below the at-risk-of-poverty threshold in 2018. In other Nordic countries, this figure sits “between 12% and 16.4%” while the average in the European Union stands at 21.9% in 2020.

Another indicator of poverty, the unemployment rate, is also very low in Iceland, standing at 3.9% in 2019. Further, there is little disparity between the unemployment rate for men and for women. However, there remains a difference in the employment rate, with 88% of working-age men having a paid job in comparison to 83% of women. This difference links to roles of childcare and housekeeping, which traditionally fall on women. However, Iceland has robust subsidized childcare policies, which lessen the burden of traditional gender roles and allow women to participate in the labor force more freely.

The Gender Wage Gap in Iceland

The Global Gender Gap Report finds that Iceland has closed 89.2% of its gender wage gap as of 2021, taking the lead as the most gender-equal country in the world. There is a strong culture around social safety nets and welfare in Iceland, ensuring that gender and income inequalities are minimal. According to the OECD Better Life Index, wage bargaining in Iceland helps promote income inequality and decrease poverty rates. In addition to this, the government has implemented several policies in recent years with the intention of addressing the gender wage gap in Iceland.

Gender Equality Policies in Iceland

First, and most well-known, is the Equal Pay Certification, the first policy of its kind in the world. This policy, which went into effect in 2018, requires all companies with 25 or more employees to provide annual proof of equal pay for men and women. The policy previously only required companies to disclose information on wages, but the government expanded it to further increase job satisfaction and transparency in the pay system. This one-of-a-kind policy is making strides to close what is remaining of the gender wage gap in Iceland.

Iceland also requires a near equal gender balance on the boards of all publicly traded companies and requires a certain percentage of employees to be of each gender. All companies with 25 or more employees must also disclose the gender composition of their employees — an initiative aimed at pressuring companies to improve gender equality in the workplace. While this policy does not directly address the gender wage gap, it is a step in ensuring overall gender equality that is likely to promote equal pay.

Looking Ahead

All in all, the Icelandic government has shown success in continuously narrowing the gender wage gap through the implementation of these policies. This success allows the nation to stand as a world leader in gender equality. Despite this, there is still room for progress, especially as Iceland’s demographics change and the country struggles with the effects of the COVID-19 pandemic. Statistics Iceland reports that immigrants represented 15.2% of the population in Iceland in 2020 — a figure that is consistently growing. Immigrants are at greater risk of poverty in Iceland because they are “less likely to be employed” compared to “their native-born counterparts.” Furthermore, the gender wage gap disproportionately impacts immigrant women, therefore, as the immigrant population in Iceland increases, strong gender equality policies remain important.

Another threat to narrowing the gender wage gap in Iceland is the COVID-19 pandemic, which has stalled progress in gender equality and poverty eradication worldwide. In Iceland, like in all countries where women face a double burden of working while caring for children and the household, lockdowns and social distancing force more women to stay home from work. These pandemic effects may threaten to reverse progress in gender wage gap policies. However, there is hope that the constant and unyielding work of the Icelandic government will ensure progress for years to come.

– Emma Tkacz
Photo: Flickr

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Pension Reforms and Elderly Poverty in Estonia

Elderly Poverty in Estonia
Estonia, the northernmost Baltic state, is a member of the European Union that was formerly part of the Soviet Union. After gaining independence in 1991, newly recognized Estonia embarked on a series of political and economic reforms. Many now commonly refer to the country as one of the Baltic Tigers alongside Latvia and Lithuania because of its rapid economic growth. Today, Estonia is a developed, high-income country that consistently ranks high in quality of life, education and digitalization. Despite this, Estonia still lacks in other indicators of development. The road to capitalism increased inequalities in Estonian society that did not exist under communism. Citizens lost some of the safety nets they previously had. Elderly poverty in Estonia remains a significant issue that demographic trends and a fragile pension system exacerbate.

The Estonian Pension System

As of December 2020, 41.4% of Estonians over the age of 65 are at risk of poverty, which is one of the highest rates across the European Union. This percentage has significantly increased since 2011 when it stood at 13.1%. When the Estonian government modernized the economy and pension system after independence in 1991, young people benefitted more because they had more time to collect into their pensions. Those approaching old age or already receiving pensions suffered, evident in the high elderly poverty rate today. When people reach retirement age in Estonia, they receive a pension based on the time they spent contributing to the labor force. In addition to this, Estonians can opt into two other pension pillars, one based on their income and one based on voluntary contributions.

  1. State Pension. The first pillar of the pension system is mandatory for all Estonians. It aims to guarantee a standard of living above the absolute poverty line. Social taxes that the government collected fund this pillar. Citizens receive a pension based on the number of years worked.
  2. Wage-based Pension. Estonians can participate in this pillar by contributing 2% of their salary to a pension fund. This pillar used to be mandatory but is voluntary as of 2021.
  3. Supplementary Funded Pension. This pillar, which insurance companies and banks managed, allows people to make extra payments into their pensions.

With the aging population, the number of pensioners is quickly rising, putting pressure on pension sizes. The Estonian population is aging and the number of working-age people is decreasing. The social tax revenue that funds pensions is likely to decline. The media has criticized the reforms that made the second pension pillar voluntary for their potential to destabilize the economy and increase poverty among the elderly.

Gender and Elderly Poverty

Elderly women are especially vulnerable to poverty in Estonia. According to the OECD, 42.8% of women over 65 in Estonia live in relative poverty, compared with 21.4% of their male counterparts. Women also have a much higher life expectancy than men in Estonia. They are living on average 8.4 years longer than men.

This could mean that women often end up widowed and lose their husband’s source of income. This only compounds the financial problems elderly women may already face because of low pensions. 

Looking to the Future

Despite this, the Estonian government has made efforts to combat elderly poverty. Recent reforms adjusted the retirement age to increase every year with the life expectancy. A higher retirement age means people work longer, contributing more to pension funds that Estonia will need in the future. The Estonian government wants to ensure that the pension gap between men and women does not grow. To do that, it is calling for measures to reduce the gender pay gap. The measures include increasing the Labor Inspectorate’s supervision of wages and promoting gender equality curricula in schools.

The government has not yet analyzed the effects of this plan as it extends into 2023. On a supranational level, the European Union proposed legislation in early 2021 that would require companies to report on pay disparities between males and females. The wage gap has dropped from 22.5% in 2013 to 19.7% in 2020 and projects to drop another percentage point by 2023.

To address elderly poverty in Estonia, various organizations are working on regional, national and European levels. The European Anti-Poverty Network has a commitment to eradicating poverty across Europe and placing the fight against poverty and social exclusion at the top of the EU agenda. It has partnered with the Estonian Association of Pensioners (EPUL), which cooperates with government agencies to protect the rights of the elderly.

Its primary activities are advocacy-focused and help bring elderly voices to the forefront of Estonian politics through public events, lectures and lobbying meetings. In 2018, EPUL signed an agreement that formed elderly councils in the Tallinn city government to involve the elderly in decision-making. The organization also gives free legal aid to the elderly and provided 817 hours of free legal help in 2018.

Though the effect of the COVID-19 pandemic on elderly poverty in Estonia is not certain. However, trends in the years leading up to 2020 are favorable. The relative poverty rate is slowly decreasing, as is the gender pay gap that affects old-age pensions. With NGO work and strong national policies, Estonia is on its way to alleviating and eradicating poverty among its most vulnerable population, the elderly.

– Emma Tkacz
Photo: Unsplash

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4 Facts About Child Poverty in Austria

Child Poverty in Austria
The Republic of Austria is a landlocked nation located in Central Europe. With its rich history and picturesque mountain views, Austria is a well-traveled country in the European Union (EU). Nevertheless, child poverty in Austria is a topic of discussion for many officials and leaders in the Central European nation. In 2019, approximately 372,000 Austrian children and youth younger than 20 years old lived in households vulnerable to social exclusion and poverty. These children, in particular, are more likely to be deprived of opportunities and basic needs in comparison to wealthier households. As such, organizations aim to address child poverty in Austria.

4 Facts About Child Poverty in Austria

  1. Roughly 6.2% of Austrian children live in conditions of relative poverty. About 33% of Austrian children “live with at least one person” who is a migrant. In this case, it is notable that poverty disproportionately affects the migrant population. Other children in impoverished conditions come from large families or single-parent households.
  2. Austria has a particularly high number of child refugees. In Austria, “1,751 unaccompanied migrant children applied for asylum in 2017.” Austria takes in many migrant children from the Middle East and from other war-torn areas of the world. Vienna, the capital of Austria, funded a program for unaccompanied minors coming to Austria, particularly trafficking victims.
  3. Child trafficking is rife. The United States Department of State’s 2020 Trafficking in Persons Report for Austria specified that a Vienna-based program offered legal, psychological, social, language and medical assistance to victims, including child trafficking victims. Though this program did not work in practice, it still aided NGOs and other organizations that advocate for children, migrants and asylum seekers to better identify trafficking victims. Therefore, this initiative still aided the overall global human trafficking crisis, with a particular focus on children.
  4. Rising child poverty rates. The Organization for Economic Co-operation and Development (OECD), which began in Paris, France, is an organization with various member countries that have commitments to world trade and overall economic progress. It reported that children from Austria are relatively better off when looking at the organization’s average poverty numbers, though these numbers are deceptive. Despite this fact, in 2015, the OECD reported an increase in the number of Austrian children living in relative poverty, even though the country is performing relatively well according to OECD standards.

SOS Children’s Villages

Several organizations aim to address child poverty in Austria. One such NGO is SOS Children’s Villages. The organization’s founder, Hermann Gmeiner, was an Austrian citizen. Gmeiner established the organization in the Austrian town of Imst, Tyrol, in response to the growing number of children suffering “without parental care in post-war Austria.” The organization works with children and families to tackle child poverty worldwide. SOS Children’s Villages has a large presence in Austria, with various initiatives like family strengthening programs, support for children who do not have adequate parental care and accommodation for refugee children. Over the last seven decades, SOS Children’s Villages has improved the lives of more than 4 million children worldwide.

With organizations committing to reducing child poverty in Austria, there is hope for Austrian children to look to a better and brighter tomorrow.

– Rebecca Fontana
Photo: Flickr