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What to Know About Japan’s Foreign Aid

Japan’s Foreign Aid
As the world’s third-largest economy, Japan is a global powerhouse. Japan’s foreign aid is also impressive, contributing the fourth largest amount in the world, and the largest in Asia. This article will cover where this aid goes, how effective it is and what Japan plans in its future.

Revising Japan’s Foreign Aid

In tandem with its rise as an economic superpower, Japan became the world’s leading foreign aid donor in the 1980s. However, the international community widely criticized Japan for funding environmentally harmful projects of various corrupt Asian leaders. Japan created its first Official Development Assistance (ODA) charter in 1992, which set out a fairly standard list of goals, such as poverty alleviation and healthcare. Former Prime Minister Shinzo Abe significantly updated it in 2015 by intermingling military and aid funding together, and explicitly linking Japan’s foreign aid projects with the “prosperity of the Japanese people.”

Infrastructure

Japan’s foreign aid strategy is unique. Bilateral aid constitutes 77% of Japan’s ODA, meaning the Japanese government donates directly to the recipient country without a third-party organization.

This is well above the 59% average of other OECD countries, a collection of the world’s largest donor countries. Of this bilateral aid, 60% comes in the form of loans in comparison to an OECD average of 9%. Japan’s prioritization of infrastructure projects explains these differences. Japan favors infrastructure because of the immediate, tangible benefits it provides and also because these projects provide work for Japanese manufacturing companies.  In 2018, loans going towards infrastructure projects accounted for over one-third of Japan’s total ODA.

Currently, Japan’s largest infrastructure project is a proposed bullet train from Mumbai to Ahmedabad, a distance of around 330 miles. Besides improving transportation between India’s largest city and one of the country’s most important industrial ports, Indian officials expect the construction to create upwards of 90,000 jobs. Japan has pledged to fund 81% of the construction, equivalent to $12 billion USD, on a 50 year, low-interest loan.

Southeast Asia

Japan considers Asia, especially Southeast Asia, a critical region in which to promote Japanese interests through aid. About 57% of Japan’s ODA went to Asian countries in 2018, with India, Bangladesh and Vietnam being the largest benefactors. In this region, infrastructure, renewable energy and education are the three areas receiving most Japanese aid. Japan’s assistance has been instrumental in improving educational opportunities for women and for people living in rural areas.

Territorial disputes between China, Vietnam and the Philippines have recently intensified in the South China Sea. Abe introduced ‘Japan’s Proactive Contribution to Peace’ in his 2015 update of the ODA charter, which allowed Japan to use its aid budget to fund military operations that work towards “peace and stability” in the region. Recent aid packages to Vietnam and the Philippines included surveillance ships and liberal-arts military training. Japan’s intermingling of its de facto military and foreign aid caused some controversy. However, as long as China stays aggressive and powerful in the region, Japan will continue to provide military aid in Southeast Asia.

Healthcare

Healthcare is a growing priority for Japan, specifically in sub-Saharan Africa. With international pressure to allocate more money to the world’s lowest-income nations and away from Japan’s explicit national interest in the Pacific, Abe responded in 2016 at the Tokyo International Conference on African Development (TICAD) by pledging $30 billion to public and private sector recipients in Africa. At the 2019 conference, Abe launched the Africa Health and Wellbeing Initiative, which aims to improve healthcare using Japan’s extensive healthcare technology.

Japan will give aid through both public and private sectors in what the government calls “Mt. Fuji Shaped Healthcare” that prioritizes basic sanitation before investing in advanced healthcare systems. Japan will customize aid based on the different needs of each country.

On October 3, 2020, Japan gave a $9.4 million grant to Nigeria for medical equipment through the Africa Health and Wellbeing Initiative.

The COVID-19 pandemic refocused international attention on the importance of adequate healthcare. Japan responded in September 2020, committing over $6 billion in both bilateral and multilateral aid (chiefly to UNICEF). This aid will provide healthcare systems, training and vaccine funding for Asian and African countries.

Looking Ahead

The outlook for Japan’s foreign aid is quite positive. Yoshihide Suga, who was elected Prime Minister on September 16, 2020, is not expected to change Japan’s foreign aid policies.

While infrastructure will continue to be the main tenet, Japan’s contributions to poverty reduction and healthcare in sub-Saharan Africa have increased in the past 5 years, and this trend should continue. Additionally, the OECD projects Japan’s total ODA to increase by a modest 3% in 2020. Look for Japan’s foreign aid to grow and diversify, albeit slowly, in the coming years.

– Adam Jancsek
Photo: Flickr

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The Impact of South Korea’s Foreign Aid

South Korea’s Foreign Aid
South Korea, or the Republic of Korea officially, is stepping forward as a global leader in delivering foreign aid. During the COVID-19 pandemic, South Korea’s foreign aid will amount to $400 million USD donated to programs dedicated to improving health in developing countries, according to South Korea’s fiscal chief Moon Jae-In in April 2020. In 2017, he was the chief of staff to President Roh Moo-hyun. The country has also enacted foreign aid by pledging to extend the due dates of international loans and payments.

Where South Korea’s Foreign Aid is Going

South Korea’s foreign aid has helped South Korea emerge as a world leader, and especially since the Development Assistance Committee (DAC) recruited it. Another thing that has helped South Korea emerge as a world leader was its swift detection, containment and treatment of COVID-19. South Korea lowered the number of cases in the county to 61 cases on October 24, 2020 – all without imposing a full lockdown.

In Tanzania, South Korean foreign aid is implementing a project to empower rural women. It will facilitate this project from 2020 to 2023, with $5 million USD. Agricultural facilities will undergo construction, and female farmers will receive marketing and technical education. This will improve women’s access to land. South Korea will also establish a center for victims of gender-based violence.

South Korea has undergone a radical transformation. It has gone from being a recipient to a significant donor of international aid. In the 1960s, South Korea received over $1,400 million USD in foreign aid. Decades later, in 1987, South Korea adopted democracy, and institutions received new designs to better serve the interests of the public. In 1987, it donated $25 million in foreign aid, but this does not include aid to North Korea, or else this amount would be far larger. This change was due to South Korea’s official adoption of democracy in 1987 when June demonstrations forced the government to announce democratic reforms. A free market allowed for competition, and therefore, innovation to take place, thus sustaining the economy and bolstering the GDP per capita, from $2,835 USD in 1986 to $13,403 USD in 1996.

South Korea as an ODA Donor

In 1987, South Korea became a donor for official development assistance (ODA). ODA is government aid to encourage the economic development of developing countries. In 1987, South Korea’s foreign aid totaled $25 million. Contributions steadily increased, with yearly percentage increases ranging from 30% to 79% in the next 20 years. It continues to flourish and thrive as an emerging significant country in global aid.

South Korea and the OECD

South Korea became a member of the Organization for Economic Co-operation and Development’s (OECD) prestigious Development Assistance Committee (DAC) in 2010. The OECD is an international group of the biggest providers of assistance towards developing countries and the DAC is a forum to discuss issues of international aid focused on inclusive and sustainable growth.

In 2011, one year after becoming a member of DAC, South Korean president Lee Myung-bak stated that South Korea intends to give more aid to the world than what it has ever taken. To exemplify this promise, in 2015, Korea partnered with USAID to commit $5 million to the Ethiopian government to encourage its efforts to mitigate child and maternal death there. It mainly focused on heightening the numbers of healthy mothers and successful births, giving more access to application and acceptance of family planning, and increasing healthy birth rates.

South Korea also pledged in July 2020 to give $4 million in humanitarian assistance to countries in East Africa that experienced locust swarms, resulting in food crises for over 25 million people. The World Bank recommended that social and productive safety-net programs – a subset of social protection mechanisms – be instilled to bolster food and nutrition security. Safety nets include cash, social pensions, public works and school meal programs.

South Korea’s growth in foreign aid increased significantly after the county adopted democracy, and it became a member of the OECD. It is stepping forward as a global leader in delivering foreign assistance, as proven by its inclusion into the DAC. It is combating issues such as maternal deaths in Ethiopia and food scarcity in the East African region due to food scarcity caused by locusts.

– Madeline Drayna
Photo: Unsplash

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How are Foreign Aid, Pork and Poverty Related?

pork and povertyAfrican Swine Fever (ASF) may seem unimportant during the COVID-19 pandemic, especially as the virus that causes ASF cannot infect people. Nevertheless, it can produce serious consequences. ASF can cause up to 100% mortality in pigs. The disease not only affects pork, the most consumed meat in the world, but also devastates the livelihoods of pig farmers around the world. ASF may also hurt a country’s trade with other countries. In addition, ASF can be the target of an eradication program that costs millions of dollars. For example, in Spain, it cost an estimated $92 million in just five years. Rural development and the alleviation of poverty are at stake as well. Hence, the connection between foreign aid, pork and poverty is more significant than you might think.

ASF in Nigeria

Pig farming is connected to the livelihoods of people around the world. In Nigeria, pig farming helps Nigerians get out of poverty. An outbreak of ASF during the summer of 2020, however, already affected Nigerian farmers. Farmer Ayo Omirin told the BBC that four farmers died as a result of shock. Two of these farmers, who slumped over and died on the farm, leave their dependents facing an uncertain future. Thankfully, the state government has offered help to the farmers impacted by ASF.

Foreign Aid, Pork and Poverty

To successfully combat ASF, foreign aid flows must not stop. The Nigerian state government may have been able to provide help in part to such flows. To help us better understand foreign aid, The Borgen Project interviewed Professor Waya Quiviger, an IE University professor. Quiviger told The Borgen Project that “[Foreign aid] … could be defined as the international transfer of capital, goods or services from a country or international aid agency to a recipient country or its population. That would be a simple definition. Foreign aid consists of all resources transferred from donors to recipients.” This would include military aid and private aid, such as NGOs and individual donations.

ASF: Damaging Pork and Poverty

In 2009, scientists authored a report that said “[international] agencies and donors should promote local capacity development, research activities including risk assessment, and regional coordination of emerging swine disease surveillance including ASF.” Now in 2020, foreign aid is more essential than it was then. This may be because the majority of official foreign aid is allocated with respect to public goods.

Quiviger told The Borgen Project that “[Official Development Assistance (ODA)] … is basically public aid.” Foreign aid flows target the economic development and welfare of designated recipient developing countries. Many of the countries in which ASF is or could be present will need support in order to adequately control the disease. In particular, these countries have insufficient Veterinary Services and/or policies.

In 2019, the Organization for Economic Cooperation and Development (OECD) designated the World Organisation for Animal Health (OIE) as an ODA-eligible international organization. Consequently, ODA can contribute to to the Regular Budget of the OIE. Additionally, designated countries can receive assistance through the OIE.

Why Should Donor Countries Provide Foreign Aid?

ASF can generate or make more pronounced socio-economic problems, such as food insecurity. These problems could lead to suffering and instability, which other countries may wish to address. Additionally, others may feel sympathetic or worry about their country’s national security. Countries may then send funds to address the problem.

As an incentive, donor countries could see how the OIE is involved in other activities. For example, peste des petits ruminants (PPR), a disease of goats and sheep, threatens the livelihoods of 300 million rural families around the world. In 2019, the OIE Vaccine Bank delivered 10.1 million doses of a vaccine to deal with the disease. Funding for this program came from the World Bank, the E.U., Italy, France and the U.K. Together with international agencies, national actors, can use foreign aid to help control ASF. Thus, people around the world can enjoy pork, maybe even as they move past poverty.

What Can You Do?

Quiviger mentioned in the interview that “Another type of aid is private aid … Private aid is aid given from NGOs or donors, like you and me. Bill Gates for instance.” However, during the COVID-19 pandemic, donor countries may scrutinize and cut their foreign aid. Importantly, the U.S. is a donor of the OIE. As an individual, you can contact your senators and representatives in Congress to ask them to support the International Affairs Budget.

– Kylar Cade
Photo: Flickr

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HelpAge International Supports Elderly Populations

HelpAge InternationalThe World Bank estimates that the number of people living below the global poverty line, or those who live on less than $1.90 a day, has decreased by nearly 40% since 1990. This is largely due to the efforts of the United Nations and other global partnerships. Although these organizations are making outstanding progress, one demographic remains in seemingly inexorable poverty: the elderly. Fortunately, organizations like HelpAge International focus on helping elderly people around the world overcome poverty.

Many elderly people have little ability to provide for themselves. A lack of income, support and resources, may keep them in poverty. This is particularly prevalent in low-income countries. Especially during COVID-19, elderly people need more help than ever as they are at greater risk for infection and death. While more organizations are recognizing challenges facing older populations worldwide, their assistance is not enough to give the elderly the stability they need to lead healthier lives. This is where HelpAge International steps in.

Aging in Poverty

According to the United Nations Department of Economic and Social Affairs Program on Ageing (UNDESA), the average poverty level for populations over 75 years old in OECD countries, or members of the Organization for Economic Cooperation and Development, is 14.7%. This represents a 3.5% increase in poverty compared to those who are between 66 and 75, an astonishing rate for the world’s most prosperous nations in terms of world trade and investment. Statistics are unclear regarding elderly poverty rates in developing countries due to a lack of consistent data collection.

However, UNDESA explains that the “absence of social protection systems [in low-income countries] … are usually not sufficient to guarantee adequate income security.” Social protection systems are vital for the elderly who reduce their work hours as they age or stop working entirely due to dementia or other health conditions. Without those systems, they are left alone in inescapable poverty. What is more concerning is that the number of people across the world who are 80 years old or more is surging. An estimated 434 million people will reach this age group by 2050, two-thirds of whom will reside in underdeveloped nations. Therefore, poverty rates among elderly populations will not only become more severe, but they will also become more widespread, creating an even greater need for assistance programs.

HelpAge International

After witnessing older refugee abandonment during the Somalia and Ethiopia wars, Sir Lesley Kirkley, Chair of Help the Aged’s Overseas Committee, and Chris Beer, the organization’s future CEO, formed HelpAge International in 1983 with the goal of creating a solid global support system.

The project initially began in Canada, Colombia, Kenya, India and the United Kingdom but has since spread to include 80 countries. Eye and community care were the initial priorities, but HelpAge International’s mission has evolved into delivering all necessary resources to help elderly men and women overcome poverty. The organization aims to create an inclusive, non-discriminatory environment for all older adults. Here are some of HelpAge International’s contributions and accolades.

  1. In 1999, HelpAge International distributed recommendations that specifically addressed elderly care during emergency response situations.
  2. In 2002, HelpAge aided in the formation of the United Nations Madrid International Plan of Action on Ageing, a plan focusing exclusively on elderly development, health and prosperity progress. The plan also aims to create sensitive and sympathetic environments for older adults.
  3. Also in 2002, HelpAge International launched an education initiative intended to teach the elderly about their rights, social pensions, access to healthcare and lobbying opportunities.
  4. In 2007, HelpAge participated in Age Demands Action, a global initiative to mobilize the elderly to express their policy and issue concerns to their governments.
  5. In 2012, HelpAge received the Conrad N. Hilton Humanitarian Prize, recognizing the organization for its efforts in reducing global human suffering.
  6. Since 1980, HelpAge International has performed more than 45,000 surgeries in India alone aimed at restoring sight to the elderly.

COVID-19 Response

Elderly people have suffered the most from COVID-19, with more than 50% of deaths occurring in people aged 65 years or older since mid-April 2020. Underlying health conditions and lack of access to care and information cause many COVID-19 deaths in Venezuela and Jordan. HelpAge Venezuela is focusing its efforts in La Guajira, an underdeveloped and overpopulated area that rarely receives humanitarian aid. In partnership with Humanity and Inclusion and Pastoral Social, HelpAge is providing psychosocial support and COVID-19 awareness classes to the elderly via radio in order to reach remote populations.

The organization coordinated a more detailed and widespread response in Jordan by implementing several preventive and protective measures. HelpAge is serving elderly Jordanians by monitoring food and medicine deliveries across communities, delivering hygiene kits, providing financial assistance and conducting weekly remote outreach programs. All together, these actions affect more than 5,000 people. For its outstanding impact, the government of Jordan recognized HelpAge International as a crucial COVID-19 first responder and acknowledged its unique dedication to solely serving the elderly.

Impact

In its nearly 40-year existence, HelpAge International has changed thousands of lives worldwide, focusing on those neglected by other aid organizations. Seventy-three-year-old Salem Thyab Al Salaimeh of La Guajira, Venezuela expressed his gratitude to HelpAge for finally providing him and his family with protection, safety and comfort. Neither he, his 110-year-old mother nor his fellow elderly siblings had ever been helped by any organization until HelpAge began operations in Venezuela. Hopefully, as HelpAge International grows, more elderly people like Salaimeh and his family will receive the proper care, support and attention they deserve in order to escape poverty. By overcoming the poverty-induced challenges that hinder their ability to survive, the elderly will have greater potential to remain healthy and thrive.

– Natalie Clark
Photo: Flickr

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Tourism and COVID-19: The Pandemic’s Impact on 3 Tourist Countries

tourism and COVID-19COVID-19 has caused major disruptions for travel on a global scale. The tourism industry has already experienced a loss of over $300 billion in the first five months of 2020, and that number is projected to increase to as much as $1.2 trillion due to the pandemic. Additionally, 100 to 120 million jobs associated with tourism are at risk. Tourism and COVID-19 have struggled to co-exist amidst the turmoil of 2020, especially in three major tourist countries. However, organizations are working to protect the future of the travel industry.

Global Tourism and COVID-19

Tourism is considered the third-largest export sector. It is an essential component of the global economy, comprising 10.4% of total economic activity in 2018. Some countries rely on tourism for 20% or more of their total GDP. Many countries rely on capital from tourists, ranging from small, low-income island countries to larger, high-income countries. However, according to a U.N. policy brief, there will be an estimated 58-78% decrease in tourists in 2020 compared to 2019. Three countries that have been especially affected by COVID-19 and tourism are Spain, Thailand and Mexico.

  1. Spain: Spain experienced the second-largest overall economic loss in tourism due to the pandemic, behind the United States. The country lost $9.7 million in revenue due to travel restrictions and decreased tourism. Because Spain is a high-income country and has various other contributors to its economy, it is expected to recover with greater resilience than similarly impacted, lower-income countries.
  2. Mexico: In 2018, Mexico gained a total of 7.15% of its GDP from tourism. However, Mexico’s income from tourism in April 2020 was a mere 6.3%. Additionally, the tourism sector accounts for approximately 11 million jobs in Mexico alone, many of which are now at risk.
  3. Thailand: Thailand has lost nearly $7.8 million due to travel restrictions since the start of the pandemic. The country has taken these limitations seriously in order to prevent the spread of COVID-19. However, this action has come at the cost of earning a ranking as one of the countries hit hardest by economic losses associated with tourism. The tourism sector is responsible for about 10% of the country’s total GDP.

Government Response to Tourism and COVID-19

Although COVID-19 has introduced an unprecedented economic strain on a global scale, governments are working to help countries recover. Spain released an aid package allocating €400 million to the transport and tourism sectors, €14 million to boost the local economy and €3.8 million for public health. Mexico’s government is distributing 2 million small loans of 25 thousand pesos (about $1000) to small businesses. Lastly, Thailand has approved three tourism packages to assist the local economy and small businesses.

NGO Policy Response to Tourism and COVID-19

With government and NGO action, experts predict that the travel sector will return to 2019 economic levels by around 2023. Many organizations are stepping in with policy solutions, providing hope for the industry’s revival. The U.N. World Tourism Organization released the COVID-19 Tourism Recovery Technical Assistance Package, highlighting three main policy areas: “Managing the crisis and mitigating the impact,” “providing stimulus and accelerating recovery” and “preparing for tomorrow.” Similarly, the International Labour Organization released a policy framework with four main pillars to protect workers, stimulate the economy, introduce employment retention strategies and encourage solutions-based social dialogue.

The Organization for Economic Cooperation and Development provides “Travel in the New Normal,” a series of six policy areas. These include helping businesses to implement “touchless” solutions, sanitation supplies, health screenings and other protective measures to prevent COVID-19. The OECD states that domestic travel will be vital for the recovery of tourist nations, contributing to 75% of the tourism economy in OECD member countries.

These efforts, along with other policy strategies, are vital to the recovery of the tourism industry. They will be particularly important for small- and medium-sized enterprises, industry-employed women and the working class as a whole. These policies will also further U.N. Sustainable Development Goals like No Poverty, Reduced Inequality, Partnership, Sustainable Cities & Communities and Decent Work & Economic Growth.

The tourism sector has suffered major losses in response to COVID-19, with a significant amount of revenue and jobs lost or at severe risk. Countries of all regions and income levels have been affected by the pandemic, including Spain, Mexico and Thailand. However, these setbacks provide unique opportunities to both transform the tourism industry and promote the Sustainable Development Goals.

– Sydney Bazilian
Photo: Flickr

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Hunger in Hungary: What’s Being Done?

Hunger in HungaryHungary is a landlocked country located in central Europe with a population of nearly 10 million. Of these 10 million people, almost 14.6% of Hungarians live below the poverty line, meaning hunger in Hungary remains a critical issue. Moreover, reportedly 44% of Hungarians do not have access to essential resources.

Malnourishment in Children

As estimated, some 3.3 million people suffer from food insecurity in the country. Many of those impacted are children. According to an OECD study conducted between 2007 and 2012, the number of Hungarian children living in poverty has risen from 7% to 17%.  According to the Save the Children Foundation, 6.1 out of every 1000 children die from food-related issues before their fifth birthday. While starvation kills some, others die from a lack of a nutritious diet. Those who are not starving do not receive the bare minimum of healthy nutrients to live a sustainable life.  This combination of malnourishment and a lack of a nutritious diet leads to more vulnerability to infection and disease.

Infants are often deprived of nutrients while in their mother’s womb. The severity of hunger in Hungary has led to starvation in pregnant women. According to IndexMundi’s data, as of 2017, there have been 12 deaths per 100,000 live births recorded.  The country has an under-five mortality rate at five deaths per 1,000 births and an infant mortality rate of 6 deaths per 1,000 births. The limited access to food often results in premature births and high maternal mortality rates.

Hungarian Climate and Resources

The majority of Hungarian land lies in the Great Hungarian Plain. The arid climate, lack of rainfall and prevalent droughts limit the ground for farming and sometimes lead to famines. The primary harvest for Hungary is corn, wheat, sugar beets, potatoes and rye.  The country exports most of the crops produced instead of using them to feed Hungarians in need. Some Hungarian agricultural exports have reached numbers as high as $716 million U.S. dollars, as more than 25% of the country’s crop is exported to other countries.

Alleviating Hunger in Hungary

To reduce the high numbers of hungry children, the Hungarian government provides meals in nurseries and schools for those in need. Approximately 370,000 children receive government-provided meals.  Food programs, such as the Food Aid Program, distributes nearly 50 million pounds of food. The EU Food Assistance Program also supplies food to almost 1.2 million Hungarians, which accounts for roughly 11% of the total population.

While the high rate of poverty and hunger faced in the country remains high, there is still hope to alleviate hunger in Hungary. The state is working continuously to solve the hunger problems faced. Through community programs and governmental support, slow continuous progress is being made, proving that alleviating hunger in Hungary is achievable.

– Jacey Reece

Photo: Flickr

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5 Facts About Homelessness in Luxembourg

Homelessness in Luxembourg
Bordered by Germany, France, and Belgium, Luxembourg is home to over half a million people, 24% of whom face the daily threat of homelessness. Although Luxembourg is a small country, it is also one of the wealthiest countries in the European Union. However, as the divide between the rich and poor continues to widen, the threat of homelessness in Luxembourg is increasing due to a rising cost of living and limited affordable housing.

5 Things to Know About Homelessness in Luxembourg

  1. Luxembourg is a wealthy nation, but compared to other European countries with denser populations, its homeless population is larger. The Organization for Economic Co-operation and Development (OECD) reports that approximately 37% of Luxembourg’s population was homeless in 2014, as compared to .22% of France’s population and .41% of Germany’s population—two countries with populations that are much larger than Luxembourg’s. Homelessness is especially a problem during Luxembourg’s winters, as hypothermia threatens the lives of those without a home. A report from the European Federation of National Organizations Working with the Homeless (FEANTSA) stated that the number of homeless people in Luxembourg rose from 684 people during the winter of 2012 and 2013 to 873 people during the winter of 2017 and 2018.
  2. Housing expenses are high in Luxembourg, with Luxembourg city being one of the most expensive places to live in Europe. As housing costs in Luxembourg rise by 5.4% per year, the poverty rate is also on the rise. According to a study published by Statec, a Luxembourg statistic service, the percentage of the population at risk of poverty rose from 15.4% in 2017 to 24% in 2019. For homeowners with smaller incomes, housing costs make up nearly half of their income. As of 2019, the Deloitte Global Economist Network reported that around 38% of households in Luxembourg were reported to be burdened by housing expenses. With rising costs, homeowners who could previously afford housing, may no longer be able to pay for the roof over their heads.
  3. With a growing population and a lack of available space for new infrastructure, Luxembourg can’t keep up with housing demands. Luxembourg’s population has increased by 36.2% since 2010, largely due to an influx of foreign workers. As a result of this increase, the housing crisis in Luxembourg has only grown as housing demands rise. In addition, land available to build additional housing is sparse, as nearly 92% of this land is privately owned, compared to the remaining 8% owned by public providers. To expand the housing market in Luxembourg, citizens are advocating for an increase in public housing and laws that will protect tenants from paying rising rent prices.
  4. Although the number of people staying in homeless shelters is dropping in Luxembourg, the number of nights people stay in homeless shelters is increasing. The average number of guests in night shelters decreased from 658 in 2010 to 354 in 2016. However, for these same years, the average number of nights in shelters rose from 40 days to 100 days. Night shelters are not designed to be a permanent solution for homeless people, and with the increase in the number of nights people are staying in shelters, waiting lists for the shelters are only growing longer.
  5. To combat homelessness in Luxembourg, homeless shelters are working to provide safe places for residents to sleep at night. The shelters can only provide space to a limited number of people, though, and often accrue a waiting list for beds every night. For one homeless shelter in Dommeldange, Luxembourg, overnight guests are given a place to sleep, dinner, and the facilities to shower, but they also employ trust-building exercises between social workers and guests to ensure they receive the emotional support they need. Some shelters focus their efforts on providing food to the homeless. Organizations, like “Premier Appel,” collect extra food from restaurants and grocery stores which is then fashioned into meals for those who visit the shelter. For Stëmm vun der Stross, volunteers serve up to 300 meals in the afternoon.

– Grace Mayer
Photo: Staticflickr

Elderly Poverty in South Korea

Elderly Poverty in South Korea

While South Korea is home to great technological developments and world-famous rising trends, it also has one of the highest numbers of impoverished elderly in a single developed country. Around half of the senior citizens are living in poverty with little to no support from relatives or the government. The Organization for Economic Cooperation and Development, or OECD, consists of over 30 countries that work with one another to encourage economic development. Unfortunately, despite all the economic progress it has made, South Korea has the highest elderly poverty rate of all OECD countries.

How Elderly Poverty in South Korea Came to Be

In the 1970s, a financial crisis hit South Korea that caused around 2 million people to be unemployed, many of these workers being senior citizens today. When the country began building its economy back up, many companies decided to replace the older generation of workers with younger ones. While the younger workers did not cost as much, the newly jobless population was left with no other choice but to retire earlier than expected.

In the present day, the now elderly population who was affected by the financial crisis have to support themselves by working non-conventional jobs. These jobs include picking trash off the street, cleaning or in the most extreme cases, elderly prostitution. Since this way of living is detrimental to the mental wellbeing of the older population, senior suicide rates have risen over time. Just three years ago, for senior citizens around 70 years old, nearly 50 people out of 100,000 committed suicide. For senior citizens around 80 years old, that number went up to 70 people per 100,000.

South Korea’s Welfare Programs

  • Comprehensive Welfare Program: In 2012, South Korea began the Comprehensive Welfare Program to benefit the impoverished elderly population. Senior citizens who are physically compromised were given assistance in everyday routines, such as housework or laundry. Meals are provided at senior citizen dining halls and even delivered for those who cannot make it to a meal service location. Social service and activity programs were implemented as well, which helps boost the mood of the elderly who would not have otherwise gotten a form of entertainment anywhere else.
  • Community Care Program: In 2019, South Korea announced the Community Care Program to aid senior citizens as well as other vulnerable groups. This program is spread all throughout South Korea, with application booths in plenty of local areas. Similar to the Comprehensive Welfare Program, the Community Care Program also provides in-home care services for physically compromised seniors, as well as food deliveries. This program also provides public housing and elderly daycare for those in need of special assistance and care. Additionally, 12 million won (nearly $12,000) will be provided as subsidies for senior citizens who continue to reside in the Community Care Program.

Creating Jobs for Seniors

In late 2019, South Korea’s employment rate continued to grow over 300,000 new jobs every month. Employment in late 2019 was around 27.5 million jobs, which is over 330,000 more jobs from the previous year. This hiring growth was because of the Ministry of Health and Welfare’s plans to increase senior jobs using the over 1.5 trillion won (nearly $1.5 billion) from their budget. Those who were out of a job previously were able to get a chance at improving their lives and livelihoods through becoming employed again.

– Karina Wong
Photo: Needpix

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How Food Supply Chains Are Curbing the COVID-19 Hunger Crisis

Food Supply Chains
Despite immense stress due to COVID-19, food supply chains have demonstrated resilience by offering a potential avenue for long-term poverty alleviation. The pandemic has threatened food security around the globe, with Feeding America reporting that as many as 17 million people could experience food insecurity in its wake. As such, food supply chains play an important role in assuring individuals’ access to food.

The Resilience of Food Supply Chains Amidst COVID-19

Food supply chains are the mechanism by which raw food becomes consumer-ready. These supply chains consist of farm production, processing, transportation and consumption. There are two primary categories of food supply chains. Firstly, domestic chains, in which food is produced and consumed in the same country. Second, international chains, in which food is transported across borders. Both domestic and international chains have been severely affected by the pandemic. However, there are notable differences in the impact on the two systems. This is due to their unique types of labor, transportation, and consumer demand among other conditions.

The Organization for Economic Cooperation and Development (OECD) explained that food supply chain complications disproportionately affect low- and middle-income countries. Wealthier countries, which use large-scale international chains, have more capital- and knowledge-intensive structures. These international supply chains have shown greater resilience amidst the pandemic. The recovery of international chains helps explain why low-income countries are experiencing disproportionate effects of the pandemic on food security.

In comparison, low-income countries primarily rely on small and medium domestic chains. Small domestic chains are more labor-intensive and thus affected more heavily by pandemic labor restrictions. Furthermore, the labor-intensive components of food supply chains are the hardest-hit by COVID-19. This impact stems from mobility restrictions, reduced workplace capacities and illness that limits employees’ ability to complete their jobs.

The Potential to Fight Poverty

Ensuring logistical flexibility and employee health is imperative in mitigating harm to domestic food chains. Social innovations are emerging to address the labor needs created by the pandemic. These innovations aim to increase the “flexibility of labor sourcing and timing,” by improving access to transportation, decreasing reliance on physical labor in certain production zones and improving hygiene and health education to avoid outbreaks in densely populated work areas.

Far beyond social innovation in labor, though, many believe the COVID-induced threat to food supply chains could provide an incredible opportunity for long-term poverty alleviation. One contributor to the International Food Policy Research Institute wrote: “During COVID-19, the bureaucratic, financial, logistical and technological reasons that always seemed to make actions impossible or improbable have fallen away.”

Food supply chain innovations have also addressed financial, managerial and health complications. These issues affect supply chains both in the short and long terms. For instance, digital innovation and the growth of e-commerce have played significant roles in enabling supply chains to overcome previously existing complications in the face of the pandemic.

Every type of food supply chain has increased e-commerce use. E-commerce decreases contact between workers and consumers and allows for easier food access around the globe. Apps developed by governments and businesses in places like India and China have allowed consumers direct access to food providers. Overall, these changes simplify the transportation process for food producers in countries around the world.

Innovations in Food Supply Chains

Large-scale supply chains and companies have also supported small and medium domestic supply chains with kick-starter financial support for COVID-19. Aid has also been provided to families and communities through voucher programs. Additionally, the World Bank has been working to stabilize prices across the various supply chains. By investing in the infrastructure and labor flexibility of domestic supply chains, governments and development partners have the power to strengthen global food security.

The threats to food supply chains have considerable policy implications, the OECD explains, underscoring the importance of open borders for importing and exporting food items. The World Bank released a joint statement calling for the free international movement of food to prevent a food insecurity emergency, calling on countries to cooperate to ensure food accessibility around the world. The statement also emphasizes the importance of making every step of food logistics accessible to prevent all people from going hungry, especially during pandemic lockdowns and restrictions.

– Emily Rahhal
Photo: Flickr

6 Facts About Poverty in Uruguay

poverty in Uruguay
Uruguay, a country situated on the Atlantic coast, is the second smallest country on the continent. With a population of more than 3.4 million and about 60% of them comprising the middle class, Uruguay stands as one of the most economically stable countries in the region. In fact, Uruguay has the lowest poverty rate in South America and ranks high on such well-being indices as the Human Development Index. In building a secure place as a country, Uruguay has witnessed improvements as well as hindrances in various aspects of its society. Here are six facts about poverty in Uruguay.

6 Facts About Poverty in Uruguay

  1. Life is Improving: The percentage of the population living on less than $3.20 per day in Uruguay significantly decreased from 2006 to 2017. While the rate peaked at 3.7% in 2006, it dropped to 0.4% by 2017. In accordance with the near eradication of extreme poverty, the moderate poverty in Uruguay also decreased from 32.5% in 2006 to 8.1% in 2018.
  2. Child Labor: In Uruguay, child labor affects 8% of the 8 to 14-year-olds. These children work long hours for low wages. In order to make meager earnings to financially support their families, many children in Uruguay forgo school education to work under unfavorable conditions. There has been little progress to reduce child labor, as the percentage of children from 5 to 14 years old in the workforce remained at a relatively constant rate of 6.1% in 2016. Nonetheless, certain organizations like the Telefónica Foundation have been working to raise awareness of and prevent child labor in Uruguay. One program under the organization is ProChild, which emerged in 2000 and has developed since then to include a network of 10,000 participants. Another organization that helps children shift out of labor is the MIDES Youth Affairs Bureau. It employs various programs that keep children from entering the workforce at a young age by implementing education services and training.
  3. Higher Quality of Water Sanitation: With the help of the World Bank Group, Obras Sanitarias del Estado (OSE) is now able to provide drinking water to 98% of Uruguayans. In previous years, there had been a chronic shortage of water supply and sanitation services in Uruguay due to the combined effect of low labor productivity and severe floods and droughts. However, with financial support from the World Bank Group, OSE has been able to significantly reduce water loss and continue its upward trajectory of water and sanitation quality.
  4. Decrease in Unemployment: In 2002, Uruguay experienced an economic crisis that significantly impacted the country and created widespread unemployment, However, the unemployment rate decreased significantly over the next decade. Estimates determined it was 7.6% in 2017 and this number remains low to this day. Still, the unemployment rate among the young generation has not fared well and continues to rise.
  5. Equitable Income Levels: There are still disproportionate rates of child and afro-descendent-Uruguayan populations living below the national poverty. However, income levels, in general, have seen improvements. Among the poorest 40% of the population, average income levels have risen faster in comparison to the entire population’s average growth rates.
  6. Low Gender Inequality: The labor market participation ratio between female and male workers in Uruguay is the fourth highest in Latin America. Although the salary gap still exists, as in many of the OECD countries, there has been a steady flow of both female and male laborers into the workforce of Uruguay.

Solutions

Multiple organizations have stepped up to address and improve the issue of poverty in Uruguay. One such organization is Caritas, which works to provide aid for the poor, from those who have been deprived of liberty to those who lack access to education. Especially through education, training and counseling, the organization has been able to help the most vulnerable groups in Uruguay to cope with their challenging situations.

Despite the recent progress made toward the issue of poverty in Uruguay, certain fundamental limitations in the funding of systems like infrastructure and education have constrained the maximum potential for growth. Certain groups like children and women remain more vulnerable to poverty. Nevertheless, the government has successfully implemented policies and efforts to close the gap between classes over the past years. Now, Uruguay stands on par with many other well-positioned countries around the world with relatively little aid from organizations.

– Seunghee Han
Photo: Flickr