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5 Active NGOs in Myanmar

NGOs in Myanmar
Numerous non-governmental organizations (NGOs) fight against injustices including poverty, changing weather patterns and hunger all around the world. Human rights violations have increased dramatically in Myanmar, and homelessness is now becoming the standard. Around 40% of Myanmar’s population lives below the poverty line and is in desperate need of help. Here are five NGOs Active in Myanmar helping fight these horrific issues.

5 Active NGOs in Myanmar

  1. PACT – With 3,100 employees, Pact is the largest international NGO operating in Myanmar at the moment. Since its establishment in the nation in 1997, Pact has been active in 2,636 villages spread throughout 30 townships, including Kayah State and the regions of Magway, Mandalay, Sagaing and Yangon. It is widely regarded as one of the first international NGOs to offer microfinance loans in Myanmar. Pact creates and executes initiatives that optimize local ownership and make use of already-existing networks and infrastructure. Their work in Myanmar includes a wide range of interventions, such as those in the areas of health, livelihoods, local governance, the strengthening of civil society, renewable energy, water and sanitation.
  2. The Asia Foundation – The Asia Foundation is a nonprofit organization dedicated to enhancing people’s lives throughout Asia. Its efforts in Myanmar focus on five overarching objectives: enhancing regional collaboration, empowering women, increasing economic opportunity and enhancing environmental resilience. The Foundation’s office in Myanmar offers extensive assistance to the institutions that make up the nation’s political, economic, social and educational systems. As part of their work, it improves the nation’s capacity for regional and international integration, supports initiatives for inclusive economic development, promotes women’s empowerment and political participation and improves public access to information. It also contributes to informed dialogues on the peace process.
  3. The International Development Association – An affiliate of the World Bank, the International Development Association (IDA) offers loans and consulting services to credit-worthy poor and middle-income countries. For the growth of basic social services in Myanmar, IDA offers block grants and concessional loans. It also supports a wide range of community-designed development initiatives that help to advance equity, economic development, job creation, higher incomes and improved living conditions. Primary education, fundamental health care, access to clean water and sanitation, agriculture, a better business climate, infrastructural upgrades and institutional changes are among the areas where IDA works in Myanmar.
  4. Médecins Sans Frontières (MSF) – People that armed war, epidemics and natural disasters impact receive emergency relief from the international medical group called Médecins Sans Frontières (MSF). MSF provides basic health and reproductive care, tuberculosis and malaria medicines, as well as emergency referrals. It is the leading HIV and AIDS provider in Myanmar. MSF has been operating in the nation since 1992 and conducts medical operations in the Tanintharyi and Yangon regions as well as the Rakhine, Kachin and Shan provinces. Nine months after the government shut down MSF’s operations in Rakhine, which officials claimed were biased in favor of the state’s Muslim Rohingya minority, MSF restarted its work there in December 2014.
  5. Marie Stopes International – Since 1998, Marie Stopes International (MSI), which is a U.K.-based company, has run 44 health facilities around the nation, including facilities for teenage SRH, sexually transmitted infections and sexual and reproductive health. With the help of 55 teams, MSI also engages in significant outreach, providing clients in rural parts of Myanmar with high-quality health care services. Ten of the 14 states and regions in the nation are where MSI conducts business. In the Chin, Kayin and Mon states as well as the Ayeyarwady, Bago, Magway, Mandalay, Sagaing, Tanintharyi and Yangon areas, MSI carries out health-related activities.

Even though Myanmar is experiencing significant poverty, these five NGOs are making a difference. Through their continued aid, the quality of life in the country should only improve moving forward.

– Jake Marks
Photo: Flickr

The Economic Crisis in Haiti

Economic Crisis in Haiti
Haiti is undergoing significant economic turmoil. The economic crisis in Haiti has posed challenges for families in affording essential items like food and has also affected their ability to sell crops in local markets. Political instability, natural disasters and social unrest have worsened these challenges, further affecting the country’s capacity to attain sustainable economic growth and improve the well-being of its impoverished population.

Haiti’s Turbulent Economic History

During the past few years, Haiti’s economy has been under pressure due to several factors such as natural disasters, diseases, political instability, mishandling of humanitarian assistance and the devaluation of its national currency. The country’s previously thriving tourism industry has declined as well. In contrast to the peak of 1.3 million tourists in 2018, which brought in $620 million in revenue, Haiti only received 938,000 visitors in 2019. The outbreak of the COVID-19 pandemic also significantly curtailed travel and economic activity.

After an earthquake in 2010, international lenders canceled Haiti’s debt; however, its borrowing has increased to around $3.57 billion since then. Additional turmoil, such as the growing protest movement, the assassination of President Jovenel Moïse in 2021, consecutive natural disasters in July and August of the same year and widespread gang-related violence, has further strained the nation’s economic circumstances. 

In 2022, armed gangs fueled the economic crisis in Haiti with their actions, including blocking the southern entry to the nation’s capital, which isolated four departments from the rest of the country. These areas produce consumer goods supplied to Pourt-au-Prince, and the blockade affected the country’s economy during a severe nationwide fuel shortage. This also exacerbated the hunger crisis in Haiti, with a total of 4.9 million people in Haiti experiencing food insecurity. 

Solutions

The United States is the largest contributor of humanitarian aid to Haiti. The U.S. prioritizes fostering economic growth, reducing poverty, upholding human rights and strengthening democratic institutions. To combat poverty and address persistent unemployment by creating jobs, the U.S. promotes bilateral trade and investment in Haiti. The substantial Haitian diaspora in the U.S. presents a potential influential partner in the endeavor to expand business prospects and capitalize on the numerous connections that bind Haitian and American communities.

The International Development Association (IDA) supports the government of Haiti to address the ongoing economic crisis in Haiti. They participate in supporting private secret actors and removing infrastructure barriers to market access. IDA’s support centers around enhancing human capital by expanding access to education in health care. Simultaneously, the IDA assists the government in enhancing transparency, accountability and efficacy in public investment This effort also involves strengthening institutional capabilities to generate crucial data, manage sectors, establish evidence-based policy priorities and cultivate fiscal sustainability.

Looking Ahead

According to the United Nations Conference on Trade and Development (UNCTAD), achieving lasting economic security will rely on increasing investment levels in both the public and private sectors to foster rapid and more inclusive growth. Developing infrastructure, enhancing productivity on farms, increasing manufacturing and ensuring the provision of fundamental services will have the potential to create connections that will establish are more lawful development cycle.

– Marisa Del Vecchio
Photo: Flickr

Aid Efforts and Business Opportunities to Fully Electrify Senegal

Electrify Senegal
Poverty ran at more than 36% in Senegal in 2022. But regardless of this fact, the nation actually has a rather high rate of electrification at nearly 80%, which is one of the highest in Africa. These high electrification rates however mask large disparities across different geographical and income groups, made most evident by the rate of poverty. Here is some information about efforts to electrify Senegal.

The Situation

Senegal’s power generation is highly dependent on liquid fuels, with only 10% of power generation from other sources. The expensive nature of liquid fuels means that the Senegalese government must heavily subsidize electricity generation and yet Senegalese consumers still pay more costs for electricity than other African nations at 24 cents per kilowatt hour. For comparison, the average cost per kilowatt in Nigeria is 6 cents.

To address these issues, the Senegalese government has put in place the Emerging Senegal Plan which aims to diversify and modernize energy sources, as well as increase private sector involvement via relaxing some sector regulations. Several international aid programs support this plan and the wider effort to fully electrify Senegal, thereby posing unique business opportunities for foreign investors.

Power Africa

Power Africa is a U.S. government-led public-private partnership that aims to double electricity access in Africa, with Senegal being one of its focus countries, according to the International Trade Administration. The initiative aims to provide resources for companies operating in the Senegalese power sector and as a possible result, increase efficiency and innovation and bring costs down.

Millennium Challenge Corporation (MCC)

A key supporter of Power Africa is the MCC, which in 2018 signed the Senegal Power Compact worth $550 million with the Government of Senegal. The compact targets three areas: improving the transmission network, increasing electricity access in rural areas and improving the governance and financial viability of the sector, all of which could electrify Senegal to a much greater extent.

If achieved, this not only will address geographical inequality but also alleviate the financial burden on the Senegalese government, potentially freeing up finances to refocus on other important areas.

The World Bank

In 2022, the World Bank approved $150 million from the International Development Association (IDA) to increase electricity access to Senegalese households, businesses and public facilities. In practice, this will see 200,000 households connected to the grid, including 40,000 households that are deemed vulnerable or previously difficult to electrify. Around 700 businesses, 200 schools and 600 health facilities will also benefit.

Business Opportunities

Lucrative investment prospects for foreign investors cover several sub-sectors of the Senegalese power industry, including but not limited to gas technologies, new plant equipment, renewable energy, transmission equipment, smart grid technology, household solar panels and energy efficiency technology, according to International Trade Administration.

Renewable energy and related technology are particularly prominent areas for investment as the government has strongly committed to this area as a means to fully electrify Senegal.

International Trade Administration also predicted that the funding from the MCC Compact will create business and employment opportunities for construction, procurement and engineering companies in the building and deploying of new power-generating infrastructure. Furthermore, ensuring energy efficiency and determining environmental impacts will create opportunities for consulting firms.

Looking Ahead

The combination of government focus, international aid and business opportunities suggests that Senegal is in a great position to achieve more widespread, if not full, electrification. Despite a current high electricity supply rate, fully electrifying Senegal could drastically improve power access in more rural areas and as a result, reduce the high rate of over 36% poverty.

– Saul Gunn
Photo: Flickr

Food Systems in Ghana

Food Systems in Ghana
Around 12% of Ghana’s population lives in poverty, according to the World Bank. For many Ghanaians, including those in poverty, food security is a pressing issue. Ghana, a country of more than 31 million people on Africa’s west coast, is currently in the midst of a food crisis. Food systems in Ghana have experienced strain due to recent global crises like the COVID-19 pandemic and the Russia-Ukraine War, leading to supply chain and food system shortages.

The 2020 Comprehensive Food Security and Vulnerability Analysis report for Ghana said that 63.8% of Ghanaians experienced a shock from COVID-19 that contributed to food insecurity. That same report concluded that in 2020, 11.7% of households in Ghana were food insecure.

War’s Impact

Despite occurring on a different continent, the war between Russia and Ukraine has had a devastating impact on Ghana. Agriculture is one of the pillars of Ghana’s economy, with half of the workforce being in the agriculture sector.

Food systems in Ghana are highly reliant on nitrogen fertilizer, which it has imported from Russia. Due to sanctions following the invasion of Ukraine, prices for Russian exports have skyrocketed and fertilizer was no exception. New York 1 reported that Ghana relies on Russia for one-fifth of its imports of fertilizer.

The Northern Development and Democratic Institute released a grim report with projections for the remainder of 2022. Ghana is likely to see an increase in hunger and a worsening food insecurity crisis in the final two quarters of the year, heading into 2023.

This problem is not unique to Ghana, though. Many countries are suffering the effects of supply chain issues and price hikes for fertilizer and other imports. In August 2022, the United States Ambassador to the U.N. Linda Thomas-Greenfield warned of a worsening food insecurity crisis as an effect of the war in Ukraine.

“That would mean that more than 40 million people will have become food insecure since [Russian] President [Vladimir] Putin chose to invade his neighbor and steal their land. That is more people than the entire population of Ghana,” said Thomas-Greenfield.

Looking Ahead

The future is not bleak for food systems in Ghana, though. The United States Agency for International Development (USAID) announced on August 5 that they are committing $2.5 million in aid to Ghana to alleviate the food crisis.

According to the press release, the aid money will go toward:

  • Developing new fertilizer products both organic and inorganic
  • Working with fertilizer companies and manufacturers to export fertilizer into Ghana
  • Making sure farms in Ghana receive sufficient amounts of fertilizer

In addition to the money from USAID, the World Bank will contribute to efforts to stabilize the food systems in Ghana. The Food Systems Resilience Program (FSRP-2) recently received approval for an additional $315 million in funding from the International Development Association. FSRP-2 will provide aid to three Western African countries: Sierra Leone, Chad and Ghana. The efforts that FSRP-2 funded should reduce food insecurity in the region by 25%.

Overall, food systems in Ghana are struggling but not entirely broken. Outside factors like the war in Ukraine and supply chain shocks that the COVID-19 pandemic caused hampered food security in the West African nation, but the existing strength of the agricultural sector as well as foreign aid should stabilize and revitalize Ghana’s food systems.

– Emma Rushworth
Photo: Flickr

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Impact of COVID-19 on Poverty in Sierra Leone

Impact of COVID-19 on Poverty in Sierra Leone
Government findings in 2020 report a 60% decline in average weekly profits for businesses operating in Sierra Leone. However, customer demand witnessed an 80% decline by late May. Around 60%-70% of businesses had “difficulties accessing suppliers.” The liquidity status of several businesses declined and 52% were behind or likely to fall behind on paying their rents. Employees reported momentary layoffs, while others experienced reductions in working hours, to reach around four to six hours. The impact of COVID-19 on poverty in Sierra Leone is further exemplified through youth unemployment, which forced the closure or scaled down operations of many youth-owned businesses in Sierra Leone. Youth unemployment reached 60% in 2021 and Gross Domestic Product (GDP) contracted by 4% in 2020.

Impact on Tourism Sector

Prior to the global COVID-19 pandemic, 71,000 tourists visited Sierra Leone in 2019 and projections have stated that tourism generated $39.00 million corresponding to 0.93% of GDP. This is demonstrating the power tourism has on the country’s income and economy. With travel restrictions, the level of tourism fell by 77.3% in 2020 as per Ministry of Finance records. This pushed 97% of tourism businesses into experiencing a massive impact on operations. Besides that, 29% of them encountered either provisional or permanent closure.

Accordingly, it is evident that the impact of COVID-19 on poverty in Sierra Leone is showcased through its direct ramifications on the country’s economic strength and employment rate, especially with 8,000 people working in the tourism sector indicating its importance in the development of Sierra Leone.

Food Security and Livelihood

Around 30% of Sierra Leone’s capital, Freetown live on less than $1 per day, the international poverty line standing at around $1.90 per day. Among 116 countries, Sierra Leone ranked 106 in the 2021 Global Hunger Index illustrating the severity of the food crisis. Recent 2022 records validate that 73% of the population is experiencing food insecurity, 11% of which are acutely food insecure. This illustrates direct challenges to human welfare and basic standards of living, especially as 74% of households reported using more than 75% of their income on food.

Economic Assistance

To build and encourage economic resilience, in 2020, the World Bank permitted the International Development Association to support Sierra Leone with a grant worth $100 million. Such financing supports the development of greater productivity in varying sectors including agriculture, a primary sector of Sierra Leone’s economy. In 2021, economic growth accounted for 3.1%, with agriculture contributing for half the rise.

To further sustain the government’s ability in delivering rudimentary human rights such as education and health care services in the midst of an economic crisis, in 2020 the European Union allocated €10 million in economic support. For instance, improvements in health care are evident in the infant mortality rate, declining from 78.643 for every 1,000 births in 2019 to 72.253 for every 1,000 births in 2022.

Supporting Unemployed Youth

In 2021, the International Organization for Migration (IOM) launched a vocational training program in Sierra Leone worth $4.3 million to close the gap between labor and the necessary skills the market demands. This program has reached out to 940 participants thus far and seeks to eradicate unemployment in the country by developing skilled labor, thereby fostering a population capable of initiating independent economic growth, according to IOM.

A similar effort by the United Nations Development Programme (UNDP) promoted inclusive growth among rural areas in Sierra Leone. The UNDP trains youth with a skillset that advances their employability prospects in a globalized world.

Partnering with Restless Development and the Institute of Development and Humanitarian Assistance-IDHA, the UNDP further issued grants to over 1,000 youth business owners to preserve businesses from closing, as reported on its website. Business owners reported they have been able to grow their businesses, as well as offer employment opportunities.

Nutrition and Food Assistance

With collective effort from the European Union, the U.S. and China among other multilateral donors, the World Food Programme (WFP) delivered food and nutritional support for around 540,000 people across Sierra Leone in 2021. To further support the U.N. Peacebuilding Fund Project, the WFP partnered with the Ministry of Agriculture to enable the development of inland valley swamps and create a continuous and lifelong food supply.

In January 2022, the OPEC Fund for International Development also provided contributions by extending two loans worth $35 million to curb hunger and encourage food security for 1.4 million Sierra Leoneans.

The impact of COVID-19 on poverty in Sierra Leone has presented pronounced challenges on varying economic and social levels. However, with the right collective efforts such as UNDP grants, the economy can recover to allow its population to lead a prosperous future.

– Noor Al-Zubi
Photo: Unsplash

Fragility, Conflict and Violence (FCV) Fuels Poverty

Refugee familyThe World Bank predicts that by 2030,  up to two-thirds of the world’s extreme poor could live in fragility, conflict and violence (FCV) affected areas. Global poverty rates are escalating at a shocking rate, especially in countries experiencing FCV. World Bank estimates show that an additional 18 to 27 million people would be pushed into poverty in 2020 in countries affected by FCV. The world’s most vulnerable and impoverished countries experience the interconnected issues of FCV.

Fragility

The International Development Association (IDA) reports that ½ of the world’s poor live in “fragile, conflict-affected states.” The World Bank defines fragile states as those meeting three different criteria: unstable institutional and political settings, the introduction of peacekeeping forces, international acknowledgment of instability and at least 2,000 per 100,000 migrants moving across borders. These criteria illuminate a political security crisis and forecast conflict.

Conflict

Along with fragility, conflict is a significant predictor of poverty and instability. The World Bank states that conflict accounts for “80% of all humanitarian needs.” Conflict also greatly contributes to the refugee crisis, inflating the number of displaced people around the world. FCV-afflicted countries account for 82% of forcibly displaced people. The addition of refugees limits the development of the host country even further and exacerbates issues of economic equality.

Conflict-affected states are home to half of the global poor. Conflict is identified by the World Bank as, “countries having 10 per 100,000 of their population experiencing conflict related deaths.” Countries on this list include Afghanistan, Syria, Somalia and South Sudan. Unsurprisingly, these countries are also among the top 5 contributors to the world’s refugee crisis.

Violence

In the last ten years, there has been a noticeable spike in intrastate violence. Poverty levels in countries with protracted conflict have increased, along with the levels of both internal and external displacement. Factors of political instability, intrastate conflict and corruption contribute to a cycle of poverty. Violent settings are likely to have high numbers of refugees fleeing those areas. The Global Citizen wrote, “By the end of 2019, 79.5 million individuals were forcibly displaced worldwide as a result of persecution, conflict, violence or human rights violations.”

Resulting from the outbreak of the Syrian Civil War, Syria is the world’s largest contributor to the global refugee crisis. Many flee country borders and are unable to attain asylum. Rather than return to a homeland of FCV, refugees remain in camps with limited access to work, education and commodities.

The Good News

In an effort to advocate and assist those most affected by FCV, the IDA has provided consistent and significant aid to the world’s poorest countries predisposed to experiencing poverty. One example of an IDA success story is Afghanistan. The IDA has endorsed 45,751 democratic community development councils throughout Afghanistan and has provided laborers 66 million days of work. The organization also helps provide vaccinations and central infrastructure to areas in need. With the help from other NGOs and nonprofit organizations, The World Bank is attacking these issues head-on through means of prevention, engagement, assistance and litigation to ensure further development in countries most affected by fragility, conflict and violence.

 

– Allyson Reeder
Photo: Flickr

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The World Bank Group Announces a $12 Billion Initiative

The World BankThe World Bank Group has announced a $12 billion initiative that would allow COVID-19 vaccines, testing and treatments to be readily available for low-income countries. This plan will positively affect up to a billion people and signals the World Bank’s initiative to ensure that developing countries are equipped to distribute vaccines and testing to citizens. The plan is a part of the overall $160 billion package by the World Bank Group, which aims to support developing countries in the fight against the pandemic.

A Multitude of Goals

Since early March 2020, the World Bank Group has provided grants to low-income countries to help with the distribution of health care equipment. Recognizing that the pandemic disproportionately impacts the impoverished and has the potential to push up to 115 million more people into poverty, the World Bank Group has been active in financing an early, timely response to the COVID-19 pandemic in low-income areas. As of November 2020, the World Bank Group has assisted more than 100 developing countries in the allocation of medical supplies and technologies.

With the spread worsening all across the globe, the next step is to administer vaccinations. This new initiative hopes to strengthen health care operatives while also providing economic opportunities within those communities. Other expectations are increasing awareness of public health, training health care workers and focusing on community engagement. As a result, the four primary goals of the World Bank Group’s Crisis Response are to save lives that are endangered by the COVID-19 virus, protect the impoverished and vulnerable, retain economic stability and facilitate a resilient recovery to the pandemic.

Moreover, the World Bank Group has extensive experience with dispersing vaccines, specifically for combating infectious diseases like tuberculosis and malaria. Through these experiences, the World Bank Group understands the importance of quick, tailored distribution based on individual country needs. As a result, countries will have flexibility in how to receive and administer vaccines — for example, through the improvement of health care infrastructure, procurement with the support from varying, multilateral mechanisms or reshaping policy and regulatory frameworks.

Partnerships and Funding

Funding for this project will consist of “$2.7 billion new financing from IBRD; $1.3 billion from IDA, complemented by reprioritization of $2 billion of the Bank’s existing portfolio; and $6 billion from IFC, including $2 billion from existing trade facilities.”

The IDA will provide grants to low-income countries while the IBRD will be supplying grants to middle-income countries. The World Bank’s private sector arm, the IFC, will be the main donor for continued economic stability within its clientele. The IFC’s support will specifically aid in the continuation of operating and sustaining jobs. The total funding will cover a broad scope to strengthen the health care sector. These solutions hope to reduce the harmful economic and social impacts of COVID-19.

World Bank Group president, David Malpass, has been working extensively with these institutions on this project. Malpass pointed out that the need for economic backing is significantly important when it comes to receiving this vaccine. Manufacturers might not deem these low-income communities as important as those in more advanced economies. Hence, it is extremely important to provide this funding to ensure global vaccine equity.

Moving Forward

Many countries have been able to discover viable vaccine treatments. It is important to distribute future doses globally and equitably as COVID-19 pushes more and more people into extreme poverty. Malpass wrote, “The pandemic is hitting developing countries hard and the inequality of that impact is clear … The negative impact on health and education may last decades — 80 million children are missing out on essential vaccinations and [more than] a billion are out of school.”

As the number of global cases increases each day, it is becoming even more important to provide relief to all countries. Low-income countries and communities are the most vulnerable. For this reason, the World Bank Group makes it transparent that its main mission is to provide extended relief to these countries during the pandemic.

– Natalie Whitmeyer
Photo: Flickr

Rethinking Development in Situations of Fragility, Conflict and Violence

Rethinking Development in Situations of Fragility, Conflict and Violence
Fragility, conflict and violence (FCV) threaten to crumble hard-won development achievements in developing countries around the world. The World Bank is transitioning to an FCV strategy that can help maintain development progress amidst conflict through prevention, engagement, transitional assistance and mitigation techniques.

Effects of FCV on Development

Situations of FCV have risen significantly in the past 30 years. The number has grown from approximately 40 million forcibly displaced people worldwide in 1990 to more than 79.5 million people at the end of 2019. FCV has devastated countries’ economies and left millions in poverty, while threatening to crumble hard-won development achievements. A World Bank report predicted that in the next decade, two-thirds of the world’s extreme poor will reside in countries that fragility, conflict and violence plague. Economies that fragility and conflict burden often have persisting poverty rates of over 40%, while countries that stabilized in the past decade have dropped their poverty rates by more than half.

About 20% of people living in situations of FCV experience educational, financial and infrastructure losses. Human capital development, a pivotal component of economic growth and poverty reduction also tend to decrease in conflict settings, as the health, education and skills of an entire population get put on hold. Human capital losses from fragility and conflict can decrease lifetime productivity and earnings. As a result, it leaves the youth population at a disadvantage even conflicts end.

The “New” Humanitarian Aid

Aid to situations of fragility, conflict and violence has traditionally focused on humanitarian interventions to save lives and fulfill basic needs, putting development planning aside until the restoration of peace. Although short-term humanitarian aid is crucial, situations of conflict have become increasingly protracted. This dilemma has stretched the operational capacity of U.N. agencies and non-governmental organizations (NGOs), designed to provide short-term humanitarian assistance. However, the need for long-term solutions is crucial. The World Bank has concluded that securing peace is mandatory for extreme poverty eradication, and is rethinking the way it approaches development in settings of FCV as a result. In a five-year strategy, the Bank aims to assist countries before, during and after situations of FCV through four pillars of engagement.

4 Pillars of Engagement

  1. Preventing Violent Conflict and Interpersonal Violence: Prevention is a key pillar of The World Bank’s FCV strategy because of its humanitarian and economic efficiency. According to the U.N. and World Bank, approximately every $1 invested in preventing situations of FCV can save $16 in the future. Prevention starts with addressing the drivers of FCV and assessing the risks associated with FCV.  Discrimination, injustice, economic and social exclusion, gender inequality and demographic shocks can all play a role in igniting FCV. Therefore, addressing these issues is crucial to improving peace and resilience before tensions escalate. For example, The International Development Association’s (IDA18) Risk Mitigation Regime is helping countries like Niger identify FCV risks. Risks that include youth disenfranchisement, corruption and natural resource competition. IDA18 is addressing them through the provision of resources and programming.
  2. Remaining Engaged During Crises and Active Conflicts: The World Bank aims to remain engaged during crises and active conflicts. It hopes to protect development, strengthen community resilience and establish foundations for recovery. Continuing investments into places experiencing FCV will protect human capital development and strengthen institutions. The World Bank is cooperating with humanitarian actors in Yemen to strengthen its projects during the conflict and is continuing its assistance with energy and agricultural sector development by employing Yemenis and sustaining their livelihoods during the conflict.
  3. Helping Countries Transition Out of Fragility: Transition periods are often turbulent, consequently leaving populations vulnerable to socio-economic shocks that can trigger the return of FCV. The World Bank aims to strengthen institutions, develop the private sector and improve relations between citizens and the state. Improving relations between the population and the state will ensure a peaceful transition out of fragility. During Somalia’s transition, for instance, The World Bank is helping to improve financial governance. It is also providing economic support to manage debt, strengthen the banking sector and reform public financial management.
  4. Mitigating the Spillovers of FCV: Spillovers from situations of fragility, conflict and violence can have major humanitarian consequences and strain the capacity of nearby states. The most vulnerable and marginalized communities often suffer the worst from cross-border crises such as displacement, famines, environmental challenges and public health emergencies. In order to reduce FCV spillover, The World Bank aims to strengthen its assistance to refugees and host countries. Ethiopia’s refugee policy reforms serve as a key example of spillover mitigation. The World Bank is helping Ethiopia’s government transition towards a progressive long-term settlement framework, integrating refugees into Ethiopia’s socioeconomic system. In addition, giving refugees access to employment and essential services will help build self-reliance, improve living standards and develop human capital development. With help from The World Bank and other development partners, Ethiopia has received the tools necessary to support its refugee population.

The World Bank’s new strategy is redefining the way to approach development in situations of fragility, conflict and violence. Through prevention, engagement, transitional assistance and mitigation, The World Bank is helping FCV communities prepare for a more peaceful and prosperous future.

– Claire Brenner
Photo: Flickr

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UN Report on Global Unemployment

UN Report on Global Unemployment
Global unemployment plays a key role in global poverty. After all, the logic goes that employment leads to prosperity, even if little by little. Development economists proclaim the efficacy of providing jobs, however low paying, as the means to the end of escaping poverty, regardless of location. There is some evidence for this. According to the Brookings Institute, increasing work rates impacted poverty most, with education being second. With that said, a recent U.N. report on global unemployment clouds the future of international job growth since, for the first time in nearly a decade, the global unemployment rate has risen.

Previous Global Unemployment Rise

In 2008 and 2009, the Great Recession hamstrung the United States economy in the worst way since the Great Depression nearly 70 years prior. Unemployment soared, reaching 13.2 percent nationally and 5.6 percent globally. Between 2008 and 2009, the last time the U.N. reported on global unemployment rate increases, it increased by nearly a full percentage point, according to the World Bank. The stock market crash in the United States and Europe clearly caused this, but thankfully the rate recovered and surpassed the 2009 point in 2019, returning to about 4.9 percent.

Reasons for the Present Situation

A U.N. report on global unemployment in January 2020 indicated that this rise in the global unemployment rate was due largely to trade tensions. The United Nations said that these conflicts could seriously inhibit international efforts to address concerns of poverty in developing countries and shift focus away from efforts to decarbonize the global economy. Due to these strains, the report claims that 473 million people lack adequate job opportunities to accommodate their needs. Of those, some 190 million people are out of work, a rise of more than 2.5 million from last year. In addition, approximately 165 million people found employment, but in an insufficient amount of hours to garner wages to support themselves. These numbers pale in comparison to the 5.7 billion working-age people across the world but they concern economists nonetheless.

To compound the issue, the International Labor Organization said that vulnerable employment is on the rise as well, as people that do have jobs may find themselves out of one in the near future. A 2018 report estimated that nearly 1.4 billion workers lived in the world in 2017, and expected that 35 million more would join them by 2019.

The Implications

A rise in global unemployment, like that which the U.N. report on global unemployment forecasts, assuredly has an impact on global poverty. More people out of work necessarily means more people struggling to make ends meet. The World Economic and Social Outlook places this trend in a bigger context. Labor underutilization, meaning people working fewer hours than they would like or finding it difficult to access paid work, combined with deficits in work and persisting inequalities in labor markets means an overall stagnating global economy, according to the report.

Hope for the Future

First of all, stagnation is not a decline, and a trend of one year to the next does not necessarily indicate a predestined change for the years ahead. In fact, the World Bank points toward statistics that it issued at the end of the year to support the claim that every year, poverty reduces. In 2019, nearly 800 million people overcame extreme poverty from a sample of only 15 countries: Tanzania, Tajikistan, Chad, Republic of Congo, Kyrgyz Republic, China, India, Moldova, Burkina Faso, the Democratic Republic of the Congo, Indonesia, Vietnam, Ethiopia, Pakistan and Namibia. Over a 15-year period, roughly from 2000 to 2015, these 15 countries showed the greatest improvements in global poverty, contributing greatly to the reduction of the global rate of people living on $1.90 a day or less to below 10 percent. Additionally, efforts by organizations such as the International Development Association have funded the needs of the 76 poorest countries to the tune of $82 billion, promoting continued economic growth and assisting in making them more resilient to climate shocks and natural disasters.

While the U.N. report on global unemployment forecasts a hindrance to these improvements, hope is far from lost. The fight against global poverty continues with plenty of evidence of success and optimism for the future.

– Alex Myers
Photo: Flickr

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How Bangladesh Reduced Poverty

How Bangladesh Reduced Poverty
Bangladesh is a country of 159 million people in the Bay of Bengal next to India. Bangladesh struggled with poverty and economic problems after gaining its independence in 1971. However, the country has recently seen economic growth along with a steady decline in poverty. How Bangladesh reduced poverty holds lessons for other countries and one can attribute it to a variety of factors.

Investing in Public Services

In the past six years, Bangladesh has lifted 8 million people out of poverty. The rate of extreme poverty fell from 17 percent to 13 percent, and the overall poverty rate declined from more than 31 percent to 24 percent. Bangladesh has also made great strides in education, health, infrastructure and energy. Primary school enrollment rates have risen from 80 percent in 2000 to more than 90 percent in 2015, and secondary school enrollment has increased from 45 percent in 2000 to 62 percent in 2015. This jump in education heralds a bright future ahead as Bangladesh invests in its youth.

In terms of health care, the country has achieved an amazing 40 percent decrease in maternal mortality rates, as well as ensuring that 63 percent of pregnant women received maternity care from a trained medical professional in 2015, up from 53 percent in 2007. Bangladesh has also improved its infrastructure by building new roads and water pipelines. People now have better access to schools, health facilities and workplaces, and the pipelines have increased access to drinkable water in rural areas. Lastly, Bangladesh has added over 2,000 megawatts of energy to the national grid and provided solar energy capabilities to over four million households in remote areas. These improvements help households go about daily activities and provide more consistent access to the internet for individuals and businesses. All of these improvements help explain how Bangladesh reduced poverty and may serve as an example for other countries.

Implementing Special Economic Zones

Bangladesh reduced poverty and increased its GDP and living standards thanks to the government’s decisions and international aid. The creation of special economic zones that encourage foreign investment was one major factor in Bangladesh’s economic growth. These zones ensure legal protection and fiscal incentives for investors and allow freer movement of goods and services. These policies make these zones in Bangladesh a safe and profitable place for foreign companies to invest.

Currently, garments and textiles are Bangladesh’s biggest industries, but it is expanding into technology as well thanks to these economic zones. For example, Bangladesh exported 12 industrial robots to South Korea in 2018. While Bangladesh currently has 12 special economic zones, there are plans to create 100 special economic zones and technology hubs to foster future growth. This investment creates jobs and brings money into the economy. Bangladesh is currently trying to direct that new money into new businesses and build the country’s service industries.

The International Development Association

In addition to government policy, the World Bank and the International Development Association (IDA) were also crucial to Bangladesh’s improving fortunes. Many of the country’s achievements in infrastructure, health, energy and education have come with the help of IDA financing. The IDA has given Bangladesh over $28 billion in grants and interest-free credit. This funding has been crucial to the country’s recent accomplishments. The combination of IDA funding and special economic zones has given Bangladesh the jobs and infrastructure needed to pull themselves out of poverty. International aid has been a crucial factor in Bangladesh’s development.

Bangladesh has made remarkable strides in both economic growth and quality of life. Economic policies that encourage foreign investment and help from the IDA both help explain how Bangladesh reduced poverty in the last decade.

– Josh Fritzjunker
Photo: Flickr