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Top 5 Causes of Global Poverty

5 Causes of Poverty
Of the population of the world, over 3 billion people live on less than $2.50 a day. This is a staggering number that begs the question, why? What are the causes of global poverty? There is a multitude of reasons as to why poverty devastates countries, but here are the top five causes of global poverty.

5 Causes of Global Poverty

  1. War: A country that goes to war can impact poverty greatly. There are several factors to consider when looking at how war contributes to poverty. There is the destruction of the infrastructure wherever the conflict rages. Fierce fighting can destroy power facilities, buildings and roads and usually take years to rebuild. The disruption of trade can have a devastating impact on the goods that people rely on. The halt to production in factories, growing of crops and work in mines can bring a country’s economy to almost a complete stop. The human cost is the most devastating out of every impact that war can bring. Not only is there the number of dead to consider, but also the number of people fleeing the conflict zones. Large numbers of a country’s workforce are fleeing the conflict zones looking for peace in a different country. Today, 71 million people have been displaced because of war and violence in countries all over the world. Since the creation of organizations such as the United Nations, countries are more willing to talk to each other and keep the peace rather than fight.
  2. Little to No Education: Often, when a country is in poverty, there is very little to no education available for its citizens.  Nearly 1 billion people came into the 21st century not knowing how to write their names or read a book. When a nation lacks in education, they become an untrained workforce for an impoverished nation. Families in these countries often cannot afford to send their children to school, and frequently require them to work to support their families. By the year 2000, it was possible to send every child in the world to school and in order to do that, the world would have only had to spend less than 1 percent of what it does on weapons. However, this obviously did not happen. Even though 1 billion people or 18 percent of the population could not read or write at the start of the century, this statistic is still an improvement from 1980 when the world illiteracy rate was 30 percent.
  3. Corruption: One can blame poverty in a country on the leaders as well as any outside factors. A country with corrupt leadership can have a devastating impact on the well being of its people. Corruption can divert much-needed resources and funds away from those that need them. Every country may have some level of corruption, however, the most poverty-stricken countries often show the most corruption. According to Transparency International’s Corruption Index, out of the 177 nations it ranked, 118 had a score of 50 or less. A score of 100 means that the country is free of corruption. Meanwhile, the least developed nations in the world have a score of 28. Fortunately, many countries are creating offices to hold their leaders accountable. Cuba, for example, has started the Ministry for Auditing and Control that aims to fight corruption within the country.
  4. Inflation: Countries’ economies can fluctuate from extreme highs to lows. Venezuela is a current example of a country going through this type of hardship. The South American country was able to prosper from an economic boom from its oil industry. When that began to regress, the country’s economy began to take a turn for the worse. Inflation ruined the country, making goods almost impossible to afford. There was also a lack of necessary supplies such as food and medicine. The current poverty rate in Venezuela sits at 90 percent out of a population of 32 million. Because of the economic hardship, 4 million people have left Venezuela as refugees. Despite Venezuela’s struggles, there are examples of countries that have faced terrible economic times and turned things around. Norway had one of the worst economies at the turn of the 20th century, but through foreign aid and resources, it is now one of the richest nations in the world.
  5. Natural Disasters: A natural disaster can have an overwhelming impact on a country’s livelihood and the well-being of its people. There is very little that anyone can do to stop natural disasters from happening. Earthquakes, tsunamis, hurricanes, landslides, volcanic eruptions and tornadoes can destroy areas and leave whole regions to pick up the pieces. Countries that are already in poverty struggle to recover and frequently sink deeper into poverty. According to the World Bank, over 26 million people enter poverty each year because of natural disasters. By the end of 2018, the world lost $225 billion as a result of natural disasters globally. As technology improves, countries become better prepared for natural disasters and have more warning.

No matter what the causes of global poverty are, there is always a solution to fix them. Whether it is through international aid or a change in legislation around the world, people can eliminate those causes, or at the very least, limit the devastation of poverty.

– Sam Bostwick
Photo: Pixabay

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10 Facts About Corruption in Cuba

Corruption in Cuba
Ever since the small Caribbean nation of Cuba became a nation in 1902, corruption at all levels of its society has plagued it. From the face of the nation to the small-time citizen, corruption impacts almost every person in Cuba.

Cuba has suffered over a century of corrupt government officials, businessmen and everyday citizens taking advantage of the already impoverished nation. Cuba has formed policies in an attempt to stop the trends that so many are familiar with, but the country needs to do more. Here are 10 facts about corruption in Cuba including its history and what the country is doing to combat it.

10 Facts About Corruption in Cuba

  1. It was not until the presidency of Jose Miguel Gomes in 1909 that Cuba experienced major public corruption. He earned the nickname of The Shark because of his involvement in several government corruption scandals that became public. The second president of Cuba and his supporters were guilty of embezzlement of funds.
  2. In 1952, Fulgencio Batista and the army led a military coup on the sitting president, Carlos Prio Socarras. Batista subsequently became president and led a corrupt dictatorship that would make millions off of profiteering from foreign investors’ illegal gambling and even criminal organizations. Batista received 30 percent of profits from Cuban casinos and hotels owned by the gangster, Meyer Lansky, alone.
  3. After six years of corruption and exploitation under the dictatorship of Batista, the Cuban people had enough. Fidel Castro led his revolutionary forces to depose Batista from power on January 1, 1959. The style of government that Castro installed did not fix the problem of corruption; it only changed those in charge.
  4. Corrupt officials take bribes from the few foreign companies in Cuba in exchange for lucrative contracts. An incident like this led to the arrest of the Canadian CEO of the Tokmakjian Group in 2011. Cy Tokmakjian was guilty of giving gifts to Cuban officials in exchange for government contracts for his Ontario, Canada-based transportation company.
  5. The police in Cuba often search the vehicles and homes of the Cuban people, and instead of charging individuals with a particular crime, they seek bribes to gain profit for their time. The police have the power to stop and question any citizen and carry out search and seizure operations without a warrant. Officially, in order to search someone’s home, police need a warrant, however, they still confiscate goods without these warrants.
  6.  State employees steal and sell state goods on the black market. As much as 20 percent of goods are stolen and distributed around the country. The Cuban government provides most of the goods for the people; items become very scarce or not seen at all as a result of the overwhelming theft. For example, people have a difficult time locating construction materials, such as paint wood and cement, because people steal them frequently.
  7. The practice of sociolisomo is widespread in the Cuban government and top positions of power. Sociolisomo translates to partner-ism and is the reciprocal exchange of favors by individuals. Those in power and control of the state-run resources often let people gain access to these resources via bribes or some other form of material compensation. For example, hospitals give people preferential treatment if they can supply the hospital with scarce material items, such as pens and paper, or provide other services to the hospital.
  8. Today, Cuba is progressing in the right direction when it comes to corruption. Transparency International has ranked Cuba at 47 out of 100; this is up from the country’s lowest of 35 in 2006. One hundred means that a country is completely free of corruption and zero means the country is very corrupt. Transparency International has ranked Cuba 61 on the list of 180 countries.
  9. When Raul Castro took power in 2008, he promised to crack down on corruption in all of Cuba. In 2009, he created the Office of the Comptroller General, which was tasked with auditing companies and state-run institutions. This was meant to bring to light and put in check the levels of corruption that have run rampant in the highest levels of government for decades. Recently, the office discovered in 2018 Cuba’s economy suffered millions of dollars worth of damage. Investigations found that 369 public enterprises were to blame for corruption including a lack of control of accounts and breach of payments. The office determined that 1,427 people were responsible.
  10. In 2001, the government of Cuba created the Ministry for Auditing and Control to help combat corruption in Cuba. Through auditing and inspections of the Cuban Civil Aviation Institute in 2011, the Cuban government was able to discover millions of dollars in the home of Rogelio Acevedo. The investigation found that Acevedo was leasing state airplanes off the official books and keeping the money for himself.

Despite a long history of corruption in Cuba, the new leadership is taking steps to combat corruption on the island nation. Corruption in Cuba still exists today but data shows that the country is heading in the right direction. Only time will tell if the newly implemented policies will have a positive impact on the Cuban people.

– Sam Bostwick
Photo: Flickr