Information and news about poverty

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World Forgotten ChildrenWith poverty rates rising in developing countries, raising a family can be financially taxing. As 10% of the worldwide population lives on less than $1.90 per day, there are millions of individuals who cannot provide basic necessities for their children. When a child has a physical or cognitive disability, parents face an additional barrier when addressing the children’s needs. In dire circumstances, some parents are left with no choice but to place their children in orphanages. The World Forgotten Children Foundation (WFCF) focuses efforts on helping impoverished orphans, especially those with disabilities.

Orphans Living in Poverty

Globally, there are 153 million children who are orphans and a large portion of these children are found in developing countries. Additionally, it is estimated that eight to 10 million children with disabilities are living in orphanages. Orphanages in impoverished areas often lack access to adequate resources, especially for children who need extra care for specific disabilities. The facilities fall short on appropriate education, economic stability and infrastructure.

The World Forgotten Children Foundation is a nonprofit organization that focuses on addressing the link between poverty and orphaned children, with an emphasis on helping disabled orphaned children in developing countries. The organization understands the value of also addressing the needs of the community rather than simply targeting the orphaned children.

Helping Children Affected by Cerebral Palsy

In 2017, the WFCF supported the International China Concern (ICC), an organization that takes care of more than 350 children and young adults with disabilities across China, many of who have been abandoned since birth. In China, approximately two million children have cerebral palsy. This group of disorders is the most common motor disability for children and prevents an individual from properly moving and maintaining balance and posture. Children with cerebral palsy struggle to straighten their bodies enough to fall asleep due to spinal postural deformities and those with severe cases are at risk of more serious health issues if they are unable to sleep in an adequate position. Between 23% to 46% of children living with cerebral palsy suffer from sleep issues due to pain, discomfort, seizures and skin ulcers. Also, sleep deprivation can cause development problems.

The ICC’s mission is to use postural management to protect the body shape and to minimize life-limiting deformity. The WFCF funded $10,277 to provide custom-fitted sleep aid systems for 14 children. The sleep aid systems improved the children’s physical and emotional health and well-being.

Handicapes en Avant Project

Handicapes en Avant is a French charity group based in West Africa focused on improving and facilitating the everyday lives of those with disabilities. The WFCF partnered with the Dokimoi Ergatai program of Messiah College to fund $7,800 worth of equipment. Through the partnership, the project provided physically disadvantaged children with hand-powered tricycles, enabling the children to have increased mobility. Additionally, visual assist items for computers were purchased in order to support children with visual disabilities in West Africa. Also, in Burkina Faso, funding was provided for the development of the first electric tricycle for the handicapped children of the Handicapes Avant facility. Additionally, blind orphans at the Handicapes en Avant school were provided with drawing boards to make relief drawings, Braille writing tablets and several other educational materials.

Improving the Lives of Orphans

The World Forgotten Children Foundation recognizes the many challenges of orphaned children, especially those with disabilities. The organization works to amplify the health and welfare of these disabled children. Plans for more support projects are in the pipeline. One project at a time, the Foundation is improving the lives of orphans in developing countries.

Sarah Frances
Photo: Flickr

Elderly in BangladeshThe world currently has approximately 720 million people over the age of 65. By 2050, about 22% (36 million) of Bangladesh’s people are projected to be in this age category. With this in mind, it is important that this growing demographic is taken care of. In particular, the poverty affecting the elderly in Bangladesh is a concern that should be attended to.

Elderly Poverty in Bangladesh

Bangladesh is one of the most impoverished countries and the effects of poverty are felt hardest by vulnerable populations like the elderly. The Global AgeWatch Index ranks countries by how well their older populations are faring socially and economically. Bangladesh is considered a distinctly tough country for older people as HelpAge International ranked Bangladesh 67th out of 96 countries on the 2015 Global AgeWatch Index.

The organization notes that a considerable amount of the hardship inflicted upon older people in Bangladesh is due to natural disasters and extreme weather. Cyclones, floods, and heatwaves destroy the homes and livelihoods of elderly people. Additionally, HelpAge notes that elderly people in Bangladesh are often refused healthcare due to ageism within the country’s public health system.

Elderly people in Bangladesh also struggle to maintain a dependable income since finding employment is harder with age, especially with common and physically demanding jobs like rickshaw pulling or soil digging.  As in many other lower-income countries, elderly people in Bangladesh have to look for employment in old age due to inadequate livelihood support and insufficient social security measures.

While by no means exclusive to Bangladesh, another problem that the elderly face in Bangladesh is stigma, as pointed out by Dr. Atiqur Rahman. The stigma described is one that views the elderly as unproductive, unhealthy and needing intensive and constant care. Dr. Rahman describes the idea of the elderly being a burden as both morally and economically incorrect.

Old Age Allowance Program

The Old Age Allowance (OAA) program is a government social pension scheme that assists the elderly in Bangladesh. Originally implemented in 1997, the program provides welfare payments to qualifying elders in order to help them get by. The overall size of the program was rather small at its inception, supporting about 400,000 people. Since then, the OAA has come to cover 4.4 million elderly in Bangladesh and the size of the payments increased from 100 to 500 Bangladeshi takas (around $6). Granted the growth is a step in the right direction, the program is not yet at a point where it can help in the broad sense. Elderly poverty has still increased since it started. The OAA program accounts for a minuscule portion of Bangladesh’s budget (0.53%) and covers only 2.25 million elderly people.

Additionally, much of the fund is going to the wrong people. A study by the University of Dhaka’s Bureau of Economic Research and HelpAge International discovered that elderly people who are not impoverished are getting 50% of the total benefits and about 33% of the fund is going to those who are younger than the eligible age. Another study found that local governments lack the knowledge and interest to properly target relevant beneficiaries most in need.

Organizations Supporting the Elderly in Bangladesh

HelpAge International provides early warning systems for potential natural disasters. In times of these disasters, the organization ensures the elderly have shelter, food and access to services. For long-term relief, HelpAge restores livelihoods by supporting small business enterprises with low-cost community loans. The organization also provides training for healthcare workers to treat conditions affecting the elderly and works on improving healthcare infrastructure and referral systems for the elderly.

The Care First Foundation is an organization that offers the elderly in Bangladesh risk monitoring, referrals, counseling, medicine and medical support, home care and activities. Its goal is to expand its initiatives to alleviate elderly suffering through proper community support and services.

With more support from organizations and improvements to the social support system provided by the government, the elderly in Bangladesh can thrive and not just simply survive.

Sean Kenney
Photo: Flickr

Cure BionicsCure Bionics, a startup company based in Tunisia, is finalizing its design for a prosthetic hand using 3D-printed components. Priced at $2,000, the model will cost significantly less than the bionic limbs typically imported from Europe. Cure Bionics could transform the lives of many Tunisians in need of prosthetic limbs to improve their quality of life.

Disabilities in Tunisia

Although not much data is available for limb differences in Africa, the 2002-2004 World Health Survey declared that 16.3 of Tunisia’s population possessed some sort of disability.

Although the country has passed groundbreaking legislation prohibiting discrimination against people with disabilities, prejudice still hinders Tunisians with disabilities from fully participating in social settings. Moreover, people with disabilities often find voting difficult due to a lack of appropriate accommodations and many struggle to find good employment. Past research indicated that nearly 60% of Tunisians with disabilities did not earn any individual income, and the 40% who did work, earned 40% less than people without disabilities.

Social, political and economic exclusion means, broadly speaking, that Tunisians with disabilities are more acutely impacted by multidimensional poverty than Tunisians without disabilities. In turn, this has led to disparities in education, health and employment. The social exclusion of people with disabilities has a considerable cost in terms of quality of life with a life expectancy reduction of approximately 18 years.

Cure Bionics

Cure Bionics hopes to improve the lives of disabled people in Tunisia by making high-tech bionic limbs more accessible and affordable for the people who need them.

When the company’s founder, Mohamed Dhaouafi, was studying engineering at university, he began to research prosthetics after learning that one of his peers had a relative who was born without upper limbs and could not afford prosthetics. Dhaouafi quickly discovered that this is not uncommon: Of the approximately 30 million people in developing countries who have amputated limbs, only 1.5 million can obtain prosthetics.

After graduating from university, Dhaouafi continued to work on the prosthetic device he had begun designing in school. Today, Cure Bionics’ 3D-printed bionic hands have rotating wrists, a mechanical thumb and fingers that bend at the joints in response to the electronic impulses. The bionic hand can be adjusted to accommodate a child’s physical growth. It can also be solar-powered for use in regions without a reliable electricity supply. Since young people with limb differences require multiple prostheses as they age, Cure Bionics’ cost-effective approach could help to ensure that more children benefit from prosthetic limbs earlier in life.

Moreover, Dhaouafi hopes to offer a virtual-reality headset for physical therapy sessions. Geared especially toward children, the headset will allow recipients of bionic limbs to become familiar with their prosthetics and to practice moving and flexing their fingers in the fun and exciting context of a video game.

Looking to the Future

While Cure Bionics continues to finalize and test its bionic hand before making it available for purchase in Tunisia, Dhaouafi has already set himself another goal. He wants to offer high-tech, low-cost prosthetic limbs to people with limb differences throughout Africa, the Middle East and beyond.

Selected by the Obama Foundation Leaders: Africa program in 2019, Dhaouafi is helping to increase access to bionic prosthetics for people who could not otherwise have afforded the expense. In this way, he is also helping Tunisians with limb disabilities to overcome the formidable challenges of exclusion and escape multidimensional poverty,  improving their quality of life overall.

Angie Grigsby
Photo: Flickr

Vanuatu's Graduation Vanuatu is a southwestern Pacific Ocean country made up of about 80 islands with a small population of around 300,000. Vanuatu has recently graduated from the list of least developed countries (LDC) despite setbacks due to ongoing natural disasters and other factors. Vanuatu’s graduation from LDC status took place on December 4, 2020. It was first recognized as an LDC in 1985.

What is the Least Developed Country List?

Less developed countries are countries that struggle with maintaining sustainable development, causing them to be low-income countries. In 1971, The United Nations created a category list of the least developed countries in the world. The United Nations reviews and checks the list every three years based on the country’s economic vulnerability, income per capita and human assets. There are currently about 46 countries on the least developed country list. Angola is another country that will be scheduled for its graduation in 2021. Vanuatu has recently joined the five other countries that were able to graduate since the creation of the least developed country list.

Although less developed countries are economically vulnerable, they receive special international aid to help with creating sustainable development. These countries also have specific trade with other nations that are not accessible to more developed nations. This is why less-developed nations are sometimes referred to as “emerging markets.” The majority of the support that countries in the least developed countries list receive is either directly from or set up by the U.N. Committee for Development Policy.

The Success Behind Vanuatu’s Graduation

Vanuatu graduates form the least developed country list despite major setbacks due to climate change, natural disasters and the COVID-19 pandemic. Similar to other countries that graduated, most of Vanuatu’s success is as a result of the international aid which enabled the country’s stable economic growth. In addition to the aid, Vanuatu has also had success in its strong agriculture sector. The increased diversification in agricultural crops and stocks has helped with the per capita income and human assets criteria for the least developed countries list.

When it comes to the economic vulnerability criteria, Vanuatu is still at risk despite graduating. The risk of economic vulnerability stems from the prevalent natural disasters. Even though the country has shown consistent economic growth, the external shocks from natural disasters are out of the country’s control as it faces about two to three disasters a year. However, there is still a great chance that Vanuatu will have continued success in maintaining sustainable development.

Maintaining Sustainable Development

The most well-known source of maintaining sustainable development for less developed countries is through international aid. Even though Vanuatu has graduated from the least developed country list, the country still is able to receive aid and continue its trading relationships with countries it was given priority to when classified as a less developed nation. For instance, Vanuatu had still received $10 million in emergency aid from the World Bank organization. The funding was for the impact that both COVID-19 and a tropical cyclone had on Vanuatu earlier in 2020.

Significant Success for Vanuatu

Vanuatu’s graduation from the least developed country list is a significant achievement that demonstrates the country’s ability to maintain consistency in its economic growth, while also overcoming challenges such as the COVID-19 pandemic and natural disasters. Although the graduation signifies major growth, there is still more economic stability that is needed before the country can significantly reduce its economic vulnerability.

– Zahlea Martin
Photo: Flickr

 Mental Health in Rwanda Rwanda is a small country in sub-Saharan Africa. Rwanda has struggled to become a stable country economically and politically since it became independent in 1962. As a developing country, Rwanda is still trying to develop its healthcare system. With years of conflict and instability, people especially struggle with mental health in Rwanda.

5 Facts About Mental Health in Rwanda

  1. The Rwandan Genocide plays a significant role. Roughly 25% of Rwandan citizens struggle with PTSD and one in six people suffer from depression. The reason why so many Rwandans have mental health conditions can be explained by one key event in Rwandan history. During the Rwandan genocide of 1994, members of the Hutu ethnic majority murdered as many as 800,000 people, mostly of the Tutsi minority. The mass genocide caused severe trauma to survivors who still suffer from mental health issues 26 years after the event.
  2. Rwanda has very few resources. According to the World Health Organization, Rwanda has only two mental health hospitals, zero child psychiatrists, and only 0.06 psychiatrists per 100,000 people. With a large amount of the population plagued by mental health issues, Rwanda needs more resources to help the mentally ill.
  3. Suicide rates have greatly decreased in Rwanda. In 2016, the suicide rate in Rwanda was 11 deaths per 100,000 people. This is a great improvement compared to the 24.6 suicides per 100,000 people in 2000. An increase in mental health resources contributes to the lowering of the suicide rate in Rwanda.
  4. Increased mental health funding is essential. The average mental health expenditure per person in Rwanda is 84.08 Rwandan francs. Most citizens of Rwanda do not have the financial resources to afford mental healthcare. The government currently uses 10% of its healthcare budget on mental health services. Considering how large the mental health crisis is, the government should increase its expenditure to address the crisis. Since citizens cannot afford to pay for mental health resources, the government will need to help provide more free or affordable resources.
  5. The Rwandan Government is updating policies to address mental health. In 2018, Rwanda’s updated strategic plan for its health sector set new targets for expanding mental health care services. Its purpose is to help increase access to mental health resources by decentralizing mental health and integrating it into primary care. Also, this plan calls for a decrease in the cost of mental healthcare and an increase in the quality of care. The plan hopes to accomplish strategic goals by 2024. If successful, this plan may be used as a method to help other countries establish a quality mental health plan.

The Road Ahead for Rwanda

Considering Rwanda’s violent history, it is no surprise that the population struggles with mental health. Over the years, progress has been made with regard to mental health in Rwanda. However, many more resources are needed to help address the mental health crisis in Rwanda. With Rwanda’s updated strategic plan to address the issue and an increase in expenditure, the well-being of Rwandan’s will be positively impacted.

Hannah Drzewiecki
Photo: Flickr

Cancer and Poverty in AustraliaThe nation of Australia suffers from the highest rates of cancer in the world, but, the disease takes a significant toll on the disadvantaged and rural residents in particular. Impoverished and disadvantaged Australians are 60% more likely to die from cancer due to a lack of finances for a timely diagnosis and proper treatment. The connection between cancer and poverty in Australia can be clearly seen.

The Link Between Cancer and Poverty

The cost of treatment is only one part of the problem. The importance of prevention cannot be overstated and because of a disadvantaged situation, many poor Australians are more likely to smoke cigarettes, be overweight and not get screened for cancers. This leads to more impoverished residents developing a range of cancers that reach later stages before they are diagnosed.

While the country has a decent healthcare system, the connection between cancer and poverty in Australia is significant. Poor citizens are more likely to develop cancer and are the least financially prepared for it. One out of every three Australian cancer patients has to pay out-of-pocket for treatment ranging from a few hundred dollars up to $50,000 AUD. Patients that have private health insurance rather than public medicare often pay far more out-of-pocket, sometimes double, in addition to their regular insurance payments.

Rural Residents in Remote Areas

Residents of Australia’s rural areas often face the worst financial obstacles as they must incur travel expenses and be far from home for extended periods. In 2008, only 6% of oncologists practiced in rural areas, leaving a third of Australians that live in remote regions without immediate access to decent treatment. There were 9,000 more cancer deaths in rural areas than in urban areas over a decade, a 7% higher death rate compared to city residents.

Due to the extensive travel time, many cancer patients from remote regions are forced to quit their jobs increasing the financial burden of treatment. Those that can keep their jobs, often force themselves to continue to work despite their illness and during treatments in order to pay the bills. In many instances, cancer patients must take loans from friends or family. creating further financial obligations.

Indigenous Australians

In addition to rural residents, indigenous citizens also disproportionately die from cancer compared to other residents. Indigenous Australians have a 45% higher death rate from cancer compared to non-indigenous patients. Cancer is extremely underreported by indigenous people in remote or rural areas resulting in a lack of proper data for the government to act on.

Addressing the Link Between Cancer and Poverty

To reduce the mortality rates of cancer patients, the government must address the correlation between cancer and poverty in Australia. As of 2017, only 1.3% of Australia’s health budget is allocated for cancer prevention, screening and treatment. The country must invest in prevention as well as rapid-access cancer aid for both patients and caretakers.

The Clinical Oncology Society of Australia and Cancer Council Australia are working to improve cancer treatment in rural areas of Australia. Solutions to diminish the connection between cancer and poverty in Australia include new methods of diagnosis and treatment. Telehealth and shared care, in which the patient’s primary physician works with an oncologist to limit travel for treatment, help cut down on costs for struggling patients.

Cancer organizations in Australia have worked with the government to set up the regional cancer center (RCC) initiative across the country to make cancer care more accessible for residents living in rural areas. Since 2010, 26 regional cancer centers have opened to help patients living in remote locations.

Prioritizing the Health of Rural Residents

For the mortality rates of impoverished or rural cancer patients to lessen, the government must invest in prevention as well as access for rural residents. Above all, for Australia to successfully provide aid for cancer patients there must be accurate data collection on cancer and poverty in Australia to properly allocate funds for all demographics.

— Veronica Booth
Photo: Flickr

lunik IXAn uncomfortable reality is that there are many children in the world who do not have essentials such as food, water, electricity and a safe, sheltered home. This is the reality for the people living in Lunik IX in Slovakia.

Roma People in Lunik IX

There a several reasons why Lunik IX is an area that is neglected and overlooked by Slovakia. One is due to the large population of Roma people, a minority group unfairly discriminated against and long labeled as a reason for many problems in the country. The slum mostly consists of Roma people who lack the very things they need to rise out of poverty. The Roma population’s 97% unemployment rate is the biggest reason for poverty in the area. Many try to get jobs but are denied them purely based on their ethnicity.

This, as a result, heavily impacts children in Lunik IX. Their parents cannot provide for them, forcing them to live in a rundown area where there is little to no electricity and basic needs go unfulfilled. There is also little opportunity for them to break the cycle of poverty. All these issues have made the area a seemingly hopeless place for many of the children who live there.

Recreational Developments in Lunik IX

In the past few years, significant progress has been made in Lunik IX to improve living conditions for people. For one, there have been a lot of projects built purely for the purpose of giving children safe spaces to play in instead of playing in garbage and rubble. A gym, ping pong tables, a playground and a park have all been built, giving the residents safe recreational spaces. While these seem like small solutions to big problems, these spaces allow kids to be kids. The children of Lunik IX do not live typical childhoods and these projects allow them to engage in children’s play activities.

Other Key Developments in Lunik IX

Three important new developments in the area are the implementation of regular garbage disposal, the establishment of clean drinking water facilities and new construction projects. Lunik IX has been long plagued with poorly disposed of trash and a regular garbage disposal system eliminates this problem entirely. This alone can improve the health of people tenfold, as many of the diseases they face arise from unsanitary living conditions.

Clean drinking water is a necessity and it is something that Lunik IX lacks. There are plans for the reconstruction of water pipes with a prepaid system, which will ensure nobody accumulates debt from water payments.

Newer construction efforts are on track to solve the decay of many buildings and the lack of employment opportunities. Many of the newer buildings can be worked by residents, allowing them to have jobs they have previously been denied based on ethnicity.

Despite Lunik IX’s reputation as on of Europe’s worst slums, efforts are being made to change this and improve living conditions for the people.

– Remy Desai-Patel
Photo: Flickr

the END FundNeglected tropical diseases (NTDs) are a group of diseases caused by a variety of pathogens that are common in low-income regions. The World Health Organization WHO) and the Centers for Disease Control and Prevention (CDC) categorize 20 diseases as NTDs. They affect more than one billion people around the world, with more than a third of people affected by NTDs living in Africa. While about one-sixth of the world’s population suffers from at least one NTD, more attention is often brought to other diseases, such as HIV/AIDS and malaria. While these other diseases require a high level of attention, NTDs need prioritization too. The effects of NTDs can last for decades if proper care is not sought out as many have the ability to bring on permanent blindness and disfigurement. It is of the utmost importance that NTDs are addressed and one such organization putting in the work is the END Fund.

The END Fund

The END Fund is a nonprofit organization that seeks to protect the lives of people at risk of NTDs. It delivers treatments by working with local partners, understanding that these groups have regional expertise and know the needs of their area best.

The END Fund helps its partners design programs so that they can expand their capacity to collect important data regarding NTDs. Further, the END Fund provides technical support and monitors progress so its partners can fight disease in the most effective way possible.

It also collaborates with non-governmental organizations and seeks to involve all stakeholders in order to improve the lives of those at risk of contracting NTDs. The END Fund is active across many countries in sub-Saharan Africa as well as India and Afghanistan. It has programs in Nigeria, Ethiopia, the Democratic Republic of the Congo, Somalia and others.

NTDs in Nigeria

The country with the greatest prevalence of NTDs in Africa is Nigeria. With a population of 195 million people, five of the most common NTDs are present: intestinal worms, lymphatic filariasis, river blindness, schistosomiasis and trachoma. These diseases can cause severe pain that inhibits people from going about their daily lives. Children miss out on their education and adults miss out on economic opportunities. NTDs can cause the already impoverished to sink even deeper into poverty.

In 2013, the END Fund arrived in Nigeria. Two years later, it partnered with Helen Keller International to support local partners, the Amen Foundation and Mission to Save the Helpless (MITOSATH). It has since helped build the capacity of these groups so that they can respond to the issue of NTDs even stronger. It engaged with local leaders across many levels to make people aware of the treatment plans that are available. Among traditional groups, leaders took medication in front of many people to show that it was safe.

The End Fund’s Impact

In 2019 alone, the END Fund was able to treat 121 million people. The END Fund also trained 2.7 million healthcare workers between 2012 and 2019. Its workers have performed almost 31,000 surgeries during that same time period, with the treatments valued at more than $1 billion.

NTDs pose a great threat to people in developing countries. The END Fund has been able to accomplish a lot through its collaborative projects in Nigeria and across other countries. The END Fund will continue to work toward its vision of ensuring that people at risk of NTDs can live healthy lives.

– Evan Driscoll
Photo: Flickr

Native American WomenThe 2017 film, Wind River, based on actual events, riveted the public with its reported death rate of Native American women on American reservations. Writer-producer Taylor Sheridan aimed to raise awareness of the overlooked death rate and has succesfully done so since.

Violence Against Indigenous Women

Where poverty is the greatest, indigenous women experience domestic violence rates 10 times higher than the national average for all races. In addition, 84% of Native American women experience violence in their lifetimes or one in three each year. The perpetrators are most often non-Native men outside the jurisdiction of tribal law enforcement.

Murdered indigenous women numbers rose to 500 in 2018, which is a low figure compared to the actual number of missing persons on reservations. Women have silently died and gone missing, underreported, for years. This is due to the discordance that exists between tribal, federal and local law enforcement. However, changes are being made ever since the 1978 ruling of Oliphant v. Suquamish, where it was ruled that Indian courts have no criminal jurisdiction over non-natives. In November of 2019, President Trump signed an executive order to investigate the matter of unsolved cases of missing or murdered Native Americans.

Legislatively Addressing the Issue

Several major changes have since been underway. For example, the Not Invisible Act of 2020 will increase national focus on violent crime against indigenous people and intergovernmental coordination on the high death rate of Native American women. This bill began in 2019 as the Not Invisible Act of 2019; the first bipartisan bill in history to be introduced by four tribal representatives: Deb Haaland, Tom Cole, Sharice Davids and Markwayne Mullin.

To complement the Not Invisible Act, Savanna’s Act became public law in October 2020. Named after Savanna LaFontaine-Greywind, a murdered young indigenous woman whose fetus was cut from her womb, Savanna’s Act will ensure the Justice Department reports statistics on all missing/murdered native women and reform law enforcement. In addition, the National Institute of Justice has created the National Baseline Study which is a study on the health, wellbeing and safety of Native American women, to also provide more accurate data on femicide.

Safe Women, Strong Nations

In addition, the Safe Women, Strong Nations project partners with native nations to combat abductions and murder. The project provides legal advice to the tribes in restoring authority and holding perpetrators responsible. The project works to raise awareness to gain federal action to eliminate the violence against native women.

Poverty makes it easier for native women to be overlooked. One in three Native Americans suffer from poverty, living off on average $23,000 a year. “Poverty is both the cause and the consequence of all the ills visited upon Native Americans.” It is common knowledge that poverty provides leeway for criminality, and with Native American reservations being economically disadvantaged, this is no exception. Addressing systemic poverty instead of turning a blind eye will help lower the death rate of native women. The reservations only need opportunity and U.S.  juridical attention. It is hopeful to see that the United States’ legislative representatives are addressing violence against minority groups but more work needs to be done to protect the well-being of Native American women.

– Shelby Gruber
Photo: Flickr

the debt crisisBefore the COVID-19 pandemic, the poverty rate was expected to drop to 7.9% in 2020. But, according to the president of the World Group Bank, the pandemic may cause more than 1.4% of the world’s population to fall into extreme poverty. Since March 2020, these countries have seen lower export prices, less capital and remittance inflows and shrinking tourism revenue. Many low-income countries are facing limited resources and weak institutions that prevent them from supporting their economies. Furthermore, the debt crisis has only worsened the economic situation of developing countries during COVID-19.

The Global Debt Crisis

Half of low-income developing countries entered the pandemic with high public debt. The U.N. hoped to raise $10.19 billion to help the poorest countries during COVID-19 but only managed to raise $2.8 billion. With 150 million people threatened to fall into extreme poverty, experts are worried about the long-term economic effects of the debt crisis.

The debt crisis is becoming increasingly more destructive in many countries. The borrowing of money is occasionally controversial because citizens are not always aware of the purpose of a loan or its terms and conditions.  Sometimes these loans are used to benefit a small group of people in the country. In 2020, low-income nations were expected to pay at least $40 billion to service debts. The 76 countries with the lowest incomes owe at least $573 billion in debt. These economies are forced to handle massive amounts of debt while facing rising domestic demands, dwindling tax revenues and shrinking economies.

Consequences of Defaulting on Debt

Failure to repay a debt, including interest or principal on a loan, is called debt default. According to research from the International Monetary Fund (IMF), waiting to restructure debt until after a default is associated with larger declines in GDP, investment, private sector credit and capital inflows. Several studies have suggested that debt crises result in a substantial drop in economic growth. For example, failure to repay debts will decrease a country’s rating. Debt defaults affect a country’s ability to borrow money, exclude countries from international capital markets and increase borrowing costs.  Furthermore, since international debts have to be paid back in the creditors’ currencies, it could force governments to mine their natural resources to generate hard cash, thus continuing harmful environmental practices.

The Debt Service Suspension Initiative (DSSI)

The World Bank has proposed a new idea for countries suffering from “unsustainable” debt. The Debt Service Suspension Initiative (DSSI) is a tool that global institutions have created to stave off the debt crisis, which would allow countries to pause debt repayments to creditors interested in participating. According to The New Humanitarian, if all eligible countries join the initiative, it will free up approximately $11 billion for social spending by governments. Those who sign up for the DSSI will be expected to open its books, reveal its debt and refrain from taking more commercial loans on the side. Debt intervention for the poorest countries is, however, not a new idea.

The debt crisis affects a wide group of people, many of whom already face extreme poverty. The Debt Service Initiative may be expanded at future World Bank meetings. According to analyst and executive director for global policy, David McNair, “Countries need money now to respond to the pandemic and the quickest way to do that is to basically stop debt repayments.”

Pausing Repayments to Prioritize Pandemic Recovery

The debt crisis demands attention, especially as the COVID-19 pandemic interferes with access to resources while highlighting weaknesses in developing countries’ institutions. The World Bank is focused on using a new initiative to pause repayments in hopes of freeing up money for social spending. The initiative will also steer countries away from the consequences of debt default, such as declines in investments, capital inflows and lowered ratings. The goal is to see leaders in developing nations using the pause from payments to access resources necessary for solving prominent issues in the country.

– Rachel Durling
Photo: Flickr