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Expansion of Carbon Pricing Promises to Alleviate Poverty

Expansion of Carbon Pricing Promises to Alleviate PovertyWith an estimated value of between $16 and $54 trillion, the services provided by natural resources are an asset worth protecting. It is widely recognized that carbon dioxide from fossil fuel emissions threatens the environment and that reducing carbon emissions is a global necessity. A dominant strategy to reduce carbon is to make it more expensive which incentivizes individuals, companies and nations to use it more efficiently or switch to alternatives. Roughly 40 countries and over 20 subnational governments are either doing or planning to do so through legal mechanisms that increase carbon pricing. A recent analysis by the World Bank estimates that the value of these initiatives grew to nearly $50 billion this year.

There are two ways in which these efforts will be working to lighten the burden of poverty across the globe.

The first focuses on the role that a stable climate and healthy ecosystems have in providing a solid footing for economic development. Clean air and water, fire, flood and erosion control, mitigation from tsunamis and prevention of landslides are all services that intact ecosystems provide. These protect human populations and provide the foundation of productive agricultural systems.

Excessive use of carbon is leading to rising sea levels, increased desertification, stronger storms and less predictable weather, which will subvert the progress made on ending poverty and may create large groups of climate refugees, up to 200 million by 2050. In short, robust ecosystems offer goods and services and climate change undermines the provision of these goods and endangers massive economic, social and political costs.

The second way in which the expanding carbon market may reduce poverty depends on the design of the regulation. Currently, the two main strategies that reign supreme are cap and trade schemes and carbon taxes. The first sets a limit, the cap, on the amount of carbon that can be emitted and allows firms to trade permits to pollute. If one firm does not need to pollute, they may sell their permit to a polluter. Over time the cap is lowered and so are the emissions. Carbon taxes simply add a tax to carbon to make it more expensive and less attractive to use, though how the tax is applied and what is to be done with the revenue is flexible.

While both forms work to end poverty through protecting the environment, the cap and trade scheme contains an added component, termed carbon offsetting, which funds emissions-reduction projects in the developing world. Rather than buying permits to pollute, a firm can invest in an emissions-reduction project that otherwise would not have been financially feasible. These projects introduce clean technology and increase the level of investment in the developing world while protecting the environment.

Examples of U.N. certified emissions-reduction projects range from a soil conservation project in Moldova to reforestation of degraded croplands in Paraguay and generating power from rice husks in India. In 2013, total investment from certified projects was estimated to be over $315 billion. As carbon pricing expands, poverty reduction and sustainable development will follow.

– John Wachter

Sources: National Geographic, Oakridge National Laboratory, The Nature Conservancy, United Nations Framework Convention on Climate Change, United Nations Framework Convention on Climate Change, United Nations Framework Convention on Climate Change, World Bank
Photo: Eco Talk

Poverty in Chennai, India

chennai
There is a substantial amount of people living below poverty lines in several states of India. Although India’s economy has seen growth over the past few decades, an estimated 1.1 billion people survive on less than $1 a day.

In India, poverty rates are three to four times higher in the country’s poorest regions than the more advanced regions. The poverty alleviation rate in India has remained stagnant; rates are still the same as they were 20 years prior, especially in more remote parts of India such as Chennai.

Chennai is one of the largest and most populous cities in India and is ranked the 31st largest urban city in the world with a population of 4.3 million. It is a port city located in India and is considered a large tourist destination.

Chennai is also known as one of the largest industrial and commercial cities in India, which contributes to its economic stature. However, with large populous urban cities, comes the slums. More often than not, the impoverished are found living in the slums of the cities they are connected to.

The slum population has been increasing over the past few decades, almost doubling the population of people living in poverty in the past two decades alone. As India’s total population increases so does the slum population. Despite reform efforts and aid, many of those living in the slums do not have access to electricity and clean water.

In 2011, an estimated 29 percent of the population in Chennai were living in the slums of the city, which is less than other parts of India. For example, in 2011 30 to 40 percent of the population living in Mumbai and Kolkota were living in the slums.

The slums of Chennai are found in the back alleys of the city, where huts line the dirt streets. A majority of the slums found in large cities such as Chennai are crowded, single room houses with poor sanitation and unclean drinking water, which ultimately contributes to the spread of disease.

However, compared to other cities in India where the population is in the millions, Chennai has been doing considerably well with poverty alleviation. Chennai’s poverty rate currently stands at 8.7 percent and is considered to have one of the lowest poverty rates in the entire country, while other cities such as Coimbatore’s and Madurai’s poverty rates are as high as 17 to 22 percent.

What differentiates Chennai from other cities such as Coimbatore and Madurai is the plan in place. Chennai has developed an effective policy that helps empower people. However, even though Chennai has one of the lowest poverty rates, it still houses a large number of slum neighborhoods and people living on less than a $1 a day.

A contributing factor to the continuity and growth of these neighborhoods is rapid urbanization and unemployment. Many people move to the city in hopes of finding jobs; however, when they don’t they have trouble surviving and may ultimately end up in the slums of the city.

– Nada Sewidan

Sources: Travelmag, India Online Pages, U.N.D.P., The World Bank, The Hindu
Photo: Jacobin

Internet Could Solve Poverty in Colombia


The range of wealth in Colombia is vast. The richest people are six socioeconomic brackets higher than the poorest, and a fraction of the size. 88 percent of the population belong to the lower half of the pyramid.

The Colombian government wants to erase the gap between the wealthy and the poor and they want to use the Internet to do so. The plan is to connect 63 percent of the population to the Internet by 2018.

When the initiative began in 2010, 2.2 million people were connected to the Internet. Today, Colombia’s Ministry of Information and Communication Technology’s Live Digital Plan (Vive Digital) has increased that number to 8.8 million.

Diego Molano is Colombia’s minister for information and communications technology. He attributes the 2.5 million people lifted out of poverty in Colombia in the past three years to the program.

“When we connect, for example…a small school in the middle of the jungle to the Internet, those kids…have effectively the same opportunity to access the whole of information society—just like any kid in New York, London, or Paris,” Molano explains.

Molano recognizes, however, that connecting people to the Internet is not all that is needed. The Internet, he explains, is designed for the wealthy. It does not have applications for the rural shop-owner. “If you tried to sell Internet to them today…they say, ‘Why?’…no applications that impact their daily cash flow.”

The challenge becomes finding a way to provide Internet to Colombia’s poor rural populations as well as make it useful for them. To help with the challenge, Colombia has reached out to U.S. tech companies such as SAP, Google, Oracle and Facebook.

“Colombia is the perfect lab for them because poor people are already connected in this country,” Molano says.

One major issue, Molano has not addressed is that of electricity. In order to have Internet there needs to be access to electricity, and many parts of the country do not have that. An anonymous employee of Vive Digital told Colombia Reports that while he has delivered many computers to schools, a substantial portion have not been used because there was no access to electricity.

Colombia’s Internet initiative sees the equalizing power of the Internet, but is also finding challenges in its application.
“When you connect a potato grower in the Andean mountains, and he doubles his income thanks to Internet, you are reducing inequality,” Morano says, describing the ideal situation.

– Julianne O’Connor

Sources: Colombia Reports, Washington Post
Photo: Elespectador

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Gold-Mining in Zimbabwe: Poverty Alleviation

Artisanal gold-mining is nothing new to Zimbabwe; in fact, it’s a practice that is centuries old. What is especially interesting about the practice today, though, is how innovative Zimbabweans are using mining as a means of supporting their families in difficult economic times.

The correlation between economic strain and accelerated entry into the mining sector is strong. Zimbabwe has undergone a decade and a half of economic turmoil that began in 2000 with the collapse of its agricultural economy when the government forced out large farms only to replace them with much smaller ones run by inexperienced staff.

As a result, swaths of the population were forced to seek alternative employment, such as small-scale mining. By 2018, it is estimated that so many Zimbabweans will have adopted artisanal gold-mining that Zimbabwe’s gold output will double.

As an industry, gold-mining has the power to support thousands of hard-working Zimbabweans. According to the South African Institute of International Affairs, which in May 2014 published a comprehensive policy briefing on the topic, “artisanal gold-mining has emerged as one of the few means of poverty alleviation for poverty-stricken people in mineral-rich communities.”

Despite this, however, the government of Zimbabwe has yet to support the industry – in fact, it has criminalized small-scale mining altogether.

Government opposition to mining is a result of concerns that mining leads to environmental degradation and political instability. To some extent, these concerns are legitimate – mining relies not only on the use of dangerous chemicals but can also lead to water pollution and landscape erosion, as well as result in community tensions when workers of differing ethnicities and ideologies flood into mining towns.

Traditionally, Zimbabwe has enforced the criminalization of artisanal mining, arresting those who are caught engaging in the practice. However, because artisanal miners move between gold mines very quickly, law enforcement alone has not managed to end non-commercial mining in Zimbabwe.

The government of Zimbabwe would be smart to regulate rather than criminalize artisanal mining, as it benefits the country as a whole. Increased gold output over the past several years has earned Zimbabwe a reputation for being mineral-rich, and in turn, has led to increased international investment.

Mining gives individuals who would otherwise face unemployment an income, allowing them to participate in local economies, perhaps put down roots and in some cases, even undertake their own entrepreneurial ventures.

Lacking the violence with which it is often associated, supporting mining would be a no-brainer for Zimbabwe. Regulation (including environmental regulation) as a means of “formalizing” the mining industry could be incredibly effective in reducing its social costs and in turn, make the industry even more productive. Zimbabweans have found a way to ward off poverty – their government should listen.

— Elise L. Riley

Sources: Eldris, Info Please
Photo: The Zimbabwe Mail

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Ra Ra Riot Promotes Poverty Alleviation on Tour

ra_ra_riot_oxfam
Unlike most musicians, indie rock band Ra Ra Riot endorses more than just good music and a rockstar lifestyle during their world tours.

Formed in 2006 at Syracuse University, Ra Ra Riot has included the humanitarian organization Oxfam International at their concerts since their earliest shows. Ra Ra Riot band members Rebecca Zeller and Mathieu Santos have spoken openly in support of Oxfam’s mission to end poverty, hunger, and injustice across the globe, saying that they believe it is important to connect the cause to their music.

But allowing for tabling at concerts isn’t the only way that Ra Ra Riot shows its support for Oxfam and alleviating global poverty. In 2011, the band partnered with streaming music service Songza to raise money for Oxfam. For each person that became a “fan” of the Ra Ra Riot music station, Songza donated $0.50 to Oxfam America.

The indie band has also held concerts, such as ThrillCall’s Launch Party with Lissy Trullie, where all ticket proceeds were donated to Oxfam. Recently, Oxfam America released its annual Summer Jams album, featuring artists such as Ra Ra Riot, Wilco, and Calexico to help raise awareness about their work.

Music brings people of all different backgrounds together and makes them feel connected to each other. Ra Ra Riot has not only brought their listeners together in support of their music, but also in support of the world’s poor. What more can be asked of a band?

– Tara Young

Sources: Music for Good, OxFam America
Photo: OxFam America

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What is Poverty Alleviation?

Poverty Alleviation
Poverty alleviation aims to improve the quality of life for those people currently living in poverty. Another term that is often used is poverty reduction.

 

Innovation Leads Poverty Alleviation

 

Rudy De Waele, CEO of Nyota Media, a growth agency for entrepreneurs and start-ups in Africa, recently gave a speech at the Mobile Innovations at the OCE Discovery event in Toronto, Canada. His speech, “How Mobile Technology is Transforming Africa” discussed the WOW Generation, mobile energy solutions and 3D printing, among other successful innovations happening on the continent of Africa. He spoke of how the WOW Generation is a new generation of young, talented and driven social entrepreneurs who are not only in it for the money, but who are taking into account a positive return to society as well. WOWers have already helped thousands by working with local entrepreneurs to solve local problems with low-tech solutions.

De Waele also covered a number of mobile energy solutions currently in effect. Angaza Design is a company based in Palo Alto that is currently working in Tanzania, Kenya and Zambia. Using solar panels, Angaza Design has developed pay-as-you-go technology to provide energy that will charge mobile phones in rural areas.

Another project De Waele mentioned does not necessarily alleviate poverty, but does improve the daily lives of people living with a particularly harsh disease in Kenya. The Happy Feet project uses 3D printing to create customizable shoes in an attempt to solve the jigger problem. A jigger, also known as a sand flea, is a small insect that bites and feeds on humans, cats, dogs and domesticated livestock. Though a single bite is not likely to cause damage, complications can arise when a female jigger burrows into the foot of a person. Due to the pain, victims of the sand flea are unable to walk, which means they are also unable to work. In cases of serious infestation, it is possible to lose a nail, in the best case, or whole digits from the hands and feet in the worst case. The worst cases appear in places of poverty.

By creating and using new and inexpensive mobile technologies, there is potential for increased economic growth in developing countries. Not only is there growth, but the positive changes are impacting those living in the worst conditions. While 3D printed, customized shoes will certainly help with jiggers and their detrimental impact on those living in Kenya, projects like Angaza Design?s mobile phone charger will give independence to those living in poverty.

However, like most things, poverty alleviation is not a simple act. The United Nations Development Programme states that simple economic growth will not reduce or alleviate poverty, improve equality or produce jobs, unless said growth is inclusive of all individuals in the economy.

For example, a recent study by the African Economic Outlook showed that economic growth in Nigeria has not resulted in poverty alleviation or the creation of jobs. Despite policies for inclusive growth and employment generation, the report showed a 3 percent increase in unemployment between 2010 and 2011. The report explained that this was because the oil and gas sectors, the areas increasing economic growth, do not have much potential to create jobs.

Though Nigeria projects a 6.7 percent growth in 2013 and a 7.3 percent growth in 2014, there are potential problems. Security problems arising from religious conflicts in certain states, as well as the continued cost of flooding, all constitute potential drags on projected economic growth. The report also said that current reforms that have resulted in price and exchange rate stability should be increased by the Nigerian government to see continued progress in economic growth, a key component of poverty alleviation.

– Jordan Bradley

Sources: The Next Web, UNDP, Camps International
Photo: OxFam

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US Military Leaders Support Development

US Military Leaders Support Development
The U.S. Global Leadership Coalition (USGLC) is a diverse network of national security and foreign policy experts, business leaders, religious leaders, community leaders, and academics who recognize the importance of partnering diplomacy and development with defense to improve foreign relations, trade, and security. The USGLC argues that diplomacy and development are severely neglected in terms of funding and manpower, and they advocate for a strong foreign aid budget to benefit the U.S. and the world as a whole.
Defense and diplomacy can and should work together to strengthen the security of our nation. Foreign aid deters terrorism, encourages international markets, drives economic growth, relieves poverty, combats infectious diseases, provides educational opportunities, strengthens democratic institutions, and so much more. In fact, many high-ranking military officials are also proponents of a healthy International Affairs budget. The following statements exemplify how many USGLC military leaders support development and diplomacy in their defense objectives.
“The work performed by diplomatic and development professionals helps build the foundation for more stable, democratic and prosperous societies. These are places where the potential for conflict can be minimized, if not completely avoided, by State and USAID programs – thereby lowering the likely need for deployment of U.S. military assets.”
– Former Secretary of Defense Robert Gates, Letter to the Chairman of the Senate Budget Committee, April 21, 2010
“Robust resourcing for the State Department’s mission is one of the best investments for reducing the need for military forces to be employed. Together, our military leaders and our diplomats not only represent a symbol of America’s enduring commitment to the region, but they also build trust through partnerships that have an important stabilizing effect when trouble looms.”
– General James N. Mattis, Commander, U.S. Central Command, testimony before Senate Armed Services Committee, March 1, 2011
“The diplomatic and developmental capabilities of the United States have a direct bearing on our ability to shape threats and reduce the need for military action. It is my firm belief that diplomatic programs as part of a coordinated strategy will save money by reducing the likelihood of active military conflict involving U.S. forces.”
– Admiral Mike Mullen, former Chairman of the Joint Chiefs of Staff, Letter to Senate Majority Leader, May 21, 2010
“To truly end the threat from al-Qaeda, military force aimed at killing our enemy alone will never be enough. The United States must stay involved and invested through diplomacy, through development, through education, through trade in those regions of the world where violent extremism has flourished.”
– Secretary of Defense Leon Panetta, in a speech to the Center for a New American Security, November 20, 2012
“This is not just a military campaign. This is not a campaign where we take the hill, plant the flag, and come home to a victory parade. This is a civil-military comprehensive endeavor that requires building on what our troopers in uniform have achieved.”
– General David Petraeus, USA (Ret.), testimony before House Armed Services Committee, March 15, 2011
“Development and diplomacy keep us safer by addressing threats in the most dangerous corners of the world and by preventing conflicts before they occur. …We urge you to support a strong and effetive International Affairs Budget. Our nation’s security depends upon it.”
– 70 top military leaders, USGLC National Security Advisory Council’s Letter to Congress, March 30, 2011
These insightful statements have come straight from the mouths and pens of some of our nation’s greatest military leaders. Men and women who have dedicated their lives to defending our nation are able to recognize the vital role of diplomacy. And with the support of such highly qualified military experts, the USCLG continues to advocate for elevated diplomacy in the interest of a safer, stronger world.
– Dana Johnson

Source: USGLC
Photo: NY Daily News