Posts

, , , , ,

Women’s Health in Southeast Asia

Women's Health in Southeast AsiaSoutheast Asia, a vibrant region rich in culture and diversity, has made remarkable advancements in women’s health over the years. Data from 2019 indicates that from 1990 to 2015, maternal mortality in the region saw a sharp decline of 69%, and contraceptive use increased from 46% to 60%. Moreover, the average number of children a woman bears decreased from 3 to 2.4 during the same time frame. Yet, beneath these positive developments, deep-seated gender disparities and challenges to health care accessibility persist for many women in the region.

The Philippines

For a clearer picture, consider the Philippines. As of 2022, female labor force participation stands at a mere 46% — the lowest in Southeast Asia, perplexing given the country’s high female education levels. Moreover, the Philippines grapples with being one of the most dangerous places in Asia for women, mainly due to lax enforcement or complete neglect of harassment and assault laws. 

The ramifications of these systemic challenges are not limited to personal safety. Filipino women, like many others in Southeast Asia, face limited access to vital health resources, including sex education and birth control. Alarmingly, over a third of pregnancies for women and girls in the Philippines are unwanted, and one in five girls becomes a mother before turning 20.

Maternal Health Concerns

The breadth of the issue becomes even more evident when we look at the broader Southeast Asian region, home to over 676 million people across 11 countries. Data reveals that only 60% of these women have access to contraceptives, and nearly half of the countries in this region have an alarming maternal mortality rate.

Statistics from 2020 further demonstrate the depth of the problem. Each year, of the 11 million women in Southeast Asia giving birth, a staggering number fail to receive the requisite care:

  • 2.1 million make fewer than four antenatal care visits.
  • 1.5 million do not receive post-obstetric complication care.
  • 2.8 million do not deliver in a health care facility.
  • 1.2 million have newborns deprived of necessary post-complication care.

Additionally, the state of reproductive health is reflected in the fact that 2.4 million women have abortions in unsafe environments. Tragically, 16,000 of these women succumb to pregnancy- and childbirth-related death, while a whopping 10 million do not get the treatment they need for STDs such as chlamydia, gonorrhea, syphilis and trichomoniasis.

Moving Forward

Singapore presents a silver lining, emerging as one of the safest places for women in Southeast Asia, with life expectancy and maternal mortality rates rising above the global average.

Collaborative initiatives aimed at altering societal norms, especially those around early marriage and gender-based violence, are crucial. Furthermore, deeply entrenched socioeconomic and religious prejudices that impede law implementation need to be rectified.

While Southeast Asia has made considerable strides in women’s health, there is an undeniable correlation between poverty and the prevailing health care discrepancies. Ensuring every woman has access to quality health care, regardless of her socioeconomic background, is a shared responsibility.

– Mari Caitlin Riggles
Photo: Flickr

, , , , ,

Foreign Aid in the Philippines

Foreign Aid in the PhilippinesAs of 2021, the Philippines is the 12th most populated country, with a population of approximately 109 million people. Industrialization in the country has increased, poverty has decreased — from 23.3% in 2015 to 16.6% in 2018 — and the Philippines has one of the lowest household debts in Asia. However, it has been historically known as a frequent recipient of foreign aid.

Top Aid Givers

Some notable givers of foreign aid in the Philippines are Japan, the United States, Australia, Korea, the World Bank and the Asian Development Bank (ADB). As of 2018, Japan was still the largest source of foreign aid in the Philippines. The aid comes in the form of grants and loans that total $5.98 billion for projects throughout the country. One notable project is a subway in Manila, Philippines. The World Bank comes in next with $3.13 billion, followed by the ADB with $2.24 billion.

The United States is another large investor of foreign aid in the Philippines. The aid provided is used to advance democratic values, promote peace and security and improve education and health. Disaster relief and recovery have become a large part of aid to the Philippines. The U.S. donated more than $143 million to help the country recover from the devastating typhoon in 2013.

The Philippines and Papua New Guinea

In 2018, the Philippines, usually a receiver of foreign aid, had the chance to give foreign aid to another country. Papua New Guinea struggled with the drop in oil prices worldwide; oil was a major export for the country. Papua New Guinea needed to diversify its economy, and the government of the Philippines agreed to give aid to the struggling country through a partnership. The aid took the form of helping with industrial crops, inland fish farming and agriculture, particularly rice production.

Growing rice in tropical countries can be particularly tricky. The Philippines, however, has expertise in many different strains of rice — some of which can even hold up in severe weather like typhoons — and has even previously passed on knowledge to other countries in Africa and Brunei. Through the cooperation between the Philippines and Papua New Guinea, President Duterte believes food security can be ensured.

COVID-19 Aid to the Philippines

As the COVID-19 pandemic spread across the globe, 14 countries sent foreign aid to the Philippines, either in cash or through in-kind aid, such as medical supplies. These countries include Singapore, Taiwan, Vietnam, France, Israel and the United Arab Emirates, among others. Many of the countries donated personal protective equipment (PPE), face masks, test kits and ventilators to help the Philippines combat the novel coronavirus.

China sent a team of experts to help treat patients and shared packs of rice in remembrance of the 45th anniversary of diplomatic ties. Japan sent experts as well, and the U.S. made monetary donations of approximately $4 million and $5.9 million respectively to help prepare labs to process novel coronavirus test kits and to help local governments respond to the outbreak.

South Korea has donated more than $5 million in humanitarian assistance to the Philippines during the pandemic. Korean Ambassador Han Dong-Man said this was to honor what the Filipino soldiers did to help in the Korean War. South Korea has helped with foreign aid in the Philippines for the past 70 years, for disasters both natural and man-made.

The Philippines has been knocked down due to the COVID-19 pandemic, but there is still potential for the country to recover. There is a vast, young workforce and a growing middle class to bolster efforts to regain footing in the country. Foreign aid in the Philippines can help the country regain the progress it had been making leading up to 2020.

– Courtney Roe
Photo: Flickr

, , ,

How Heritage Preservation Reduces Poverty

How Heritage Preservation Reduces PovertyCultural heritage preservation means keeping the artifacts and traditions of a community intact against factors trying to change them or wear them away. Some common examples are restoring historical buildings, passing on an ancient craft or recording traditional tales. Cultural heritage is crucial for communities. It gives them a way to look back on their history in a way that informs their present-day identity. It also provides the communities with new chances to thrive.

Many people behind cultural conservation programs prioritize staying local and helping their communities as much as possible. Often, people living in poverty or those on the outskirts of society are the ones first offered these opportunities. In this sense, heritage preservation reduces poverty and helps communities by giving people employment and education.

Heritage Tourism

Cultural heritage preservation encourages as well as utilizes tourism. Heritage Tourism is one of the major ways preserving cultural heritage can reduce poverty in a community. It often boosts a community’s economy and can become one of its major industries. Many tourists visit cultural sites and partake in culturally-enriching activities while traveling and tend to stay longer at these places.

As tourism increases, so do jobs for local community members directly involved in tourist activities (such as museum guides or re-enactors) and those not associated with tourism (such as the food industry or local shops). Employers can then afford to pay their employees more as they receive more and more business. People also become encouraged to start their own businesses or move their businesses to these small communities upon seeing the economy emerge and grow. A Pakistan-based study published in February 2020 shows that increases in tourism noticeably improve a community overall. A 1% increase in tourism can enhance the GPD by 0.051%, agricultural development by 0.26%, direct foreign investment by nearly 2.65% and potentially decrease poverty by 0.51%.

Examples of Cultural Heritage Preservation

An example of a cultural heritage preservation project that has greatly helped a small, rural community is the Rural Revitalization Drama Festival. It occurs in Shixia Village in China and showcases traditional Chinese Opera. Though Shixia was an impoverished village in 2010, the tourism created by the festival has provided more jobs. It has created more opportunities for extra income, encouraged people who previously left the village to return and urged people to start businesses there. The festival has also highlighted other cultural treasures in the area that promoted even more preservation projects and tourism. By 2019, they were able to purchase the technology needed to process their own millet crops; whereas, they previously had to outsource production to other places.

These disciplines and practices are culturally important, but they also give many people the chances of employment and education. For example, in the Philippines, Escuela Taller has created education programs in different traditional disciplines, such as carpentry and metalwork. In Peru, local women were trained in creating traditional textiles in order to support themselves and their families. This project was created by Centro de Textiles Tradicionale del Cusco in 1996 with the support of JoinTrafalgar and the TreadRight Foundation.

How Heritage Preservation Reduces Poverty

Cultural heritage preservation reduces poverty and helps communities by passing down ancient, artisan crafts to new generations. Preserving cultural heritage is a way of declaring to others that the people and the communities housing these museums, historical buildings and traditions are important and worth protecting. With people empathizing with a community, it can encourage them to fight against the destruction of land or buildings. It can inspire people to donate and even start charities and nonprofits. Preserving cultural heritage reduces poverty by promoting the visibility and the empowerment of communities. It can at first seem to only be about showcasing a country’s history but it runs deeper. Cultural heritage preservation gives modern people a chance at a prosperous future.

– Mikayla Burton

Photo: Flickr

,

Deglobalization During COVID-19

Deglobalization Amid COVID-19COVID-19 has disrupted trade markets throughout the world. Due to this, many are speculating that the world is in a state of “deglobalization.” Deglobalization is a term that holds two meanings. One propagates the idea that local manufacturers are in danger of foreign competition. The other describes “periods of history when economic trade and investment were in decline.” Moments of deglobalization include World War I, World War II and the 2008 financial crisis in the U.S. Both events led to economic downturns in many other countries, which led to periods of distrust toward globalization.

Deglobalization in India

India has experienced more than 50,000 deaths due to COVID-19. In addition, India has many unreported COVID-19 cases due to poor surveillance infrastructure. The country has also experienced a rise in unemployment, destructive floods and a falling GDP. India has seen the world’s second-highest virus infections and there is still uncertainty about when the country can go back to normal. However, the government’s new trade policies are predicted to help India’s economy bounce back. India’s Ministry of Commerce and Industry expressed, “A key driver for India to achieve the USD 5 trillion mark in an expedited time frame would be boosting exports, both merchandise and services.” Reaching this goal would improve domestic manufacturing and service sectors through the addition of efficient infrastructure funded by the government.

However, President Mobi’s movement of taking agriculture sales into the free market has caused massive disruption. India’s agriculture is the largest employer in the country. The government has been controlling wholesale markets, securing food buyers and setting price guarantees. This globalized approach will cut guarantees set by the Indian government and force farmers to go further into debt to secure stability in a competitive field. Farmers who have entered the free market before the bills reported high rates of debt and suicide attempts. Reform to create an open market that doesn’t favor farmers is deeply controversial in India.

Nepal and Trade Restrictions

Just like India, Nepal is looking to reunite with the global market. Nepal’s unemployment rate is reaching 40% on a federal level. The informal sector employs most employed Nepalis, who gain income through unregulated markets and illegal services. An estimated 500,000 people enter the country for work while only 200,000 actually find work. The Federation of Nepalese Chambers of Commerce and Industry has a plan to reduce trade deficits caused by the pandemic by 50% and help Nepalese manufacturers through government-funded projects. President of the federation Shekhar Golchha, claims that “If the vision paper is implemented honestly, there will be an investment of $150 billion in the upcoming decade. Of the total investment, around $108 billion will come from the private sector.”

Trade with China has also been an issue for Nepal internationally. In February, Chinese traders created a blockade restricting 2,000 containers loaded with clothes, shoes, cosmetics, electronics and industrial raw materials. As China holds itself to be the “factory of the world,” it has deeply affected smaller countries. During the blockade dispute, Nepal found itself in violation of the “One China” law. A month later, Prime Minister KP Sharma Oli created the Make in Nepal-Swadeshi campaign. The prime minister intends for this campaign to start taking underemployment out of international hands.

The Philippines and its Relationship with China

The Philippines has been hit very hard by COVID-19 just as the country was beginning to recover. International trade in the Philippines has continuously declined since the beginning of the lockdowns and the overall trade income is 20.2% lower than in 2019. However, aid from foreign countries, such as China, has helped the Philippines during this time of need. On January 16, 2021, Chinese Foreign Minister Wang Yi pledged to donate 500,000 vaccines to the Philippines. Wang has also approved an infrastructure agreement to fund $400 million to the Filipino government for bridge infrastructure and $940 million for a railroad cargo project.

The Philippines has historically been lagging behind other East Asian nations in manufacturing export. Graft, low autocracy and overarching oligarchs controlling agriculture production and property contribute to holding the country back. During the Plaza Accord in 1985, these factors led to the Philippines losing out on a significant wave of Japanese investments. By the 2000s, the country’s GDP became stagnant. Sec. Carlito Galvez Jr., the chief implementer of the National Task Force (NTF) against COVID-19, reflects that the pandemic has shown how vulnerable the Philippines is to the lack of international help, stating, “For 2023, we envision for self-sufficiency and readiness for the pandemic and other disasters with the modernization and integration of our healthcare system.”

As 2021 continues, nations are deglobalizing for one reason or another, and shifting international relationships will determine the future of foreign affairs. While developing countries need economic assistance, international support has been seen to complicate domestic production in certain sectors by allowing foreign influence to dominate industries. Deglobalisation can bring a new form of globalized affairs and political leaders should rethink their investment in free markets, looking more into domestic action to keep citizens off the poverty line.

– Matthew Martinez
Photo: Flickr

, , , , ,

Access to Clean Drinking Water in the Philippines

Clean Drinking Water in the PhilippinesAccording to the World Health Organization (WHO), 2.1 billion people lack access to safe drinking, with people in rural areas with limited infrastructure being mostly affected. Within the Philippines, this concept manifests in that 91% of the country’s estimated 100.7 million population have access to basic water services, but access is highly inequitable across the country, with regional basic water services access ranging from 62% to 100%. To combat water insecurity, government bodies, non-governmental organizations (NGO’s) and independent parties have collaborated to ensure that all citizens have access to clean drinking water in the Philippines.

The Philippine Clean Water Act

In 2004, the government passed the Philippine Clean Water Act which aims to protect water bodies from pollution and monitor their safety. This was implemented through multiple boards of governors and local mayors who were given specific water sources to monitor and maintain. By localizing management, the government found that leaders were more driven to clean their water because it affected their personal community. In addition, this strategy hinged upon community involvement as well, which led to a greater public awareness of water sanitation. In other countries with a similar problem, this localized strategy could work to create a body of legislators invested in water access, which would lead to cleaner water overall.

Hydropanel Fields

Water sanitizing technology has also been instrumental in guaranteeing access to all populations in the Philippines, specifically the rural ones. For the indigenous people of Palawan, the lack of clean drinking water is due to their lack of access to city centers and infrastructure. SOURCE Global and Conservation International collaborated to create a field of hydropanels that will create 40,000 liters of clean drinking water each year. Because the hydropanels are portable and easy to assemble, they can theoretically be used anywhere in the world. This opens up possibilities globally for communities with inadequate drinking water access. Going forward, this model could be used to eradicate water insecurity.

Water.org

Another influential NGO has been Water.org, which provides no-interest loans to families trying to gain access to clean water in their homes. These loans are used to rig homes with plumbing as well as build wells. The organization is unique in that it addresses the economic issues associated with a lack of clean water. Without clean water, families contract diseases at higher rates, which limits their ability to work and earn an income. In addition, because these illnesses tend to affect children at higher proportions, access to clean water means a chance for education. Water.org’s belief is that by providing rural communities with their own funding, the people in that community will be able to build themselves up independently and ensure a legacy of success. As of now, the goal of the organization is to help the government in the Philippines reach its goal of access to clean drinking water for all by 2028.

Other Organizations for Water Access

Two other notable NGOs are DAI and Clean Water International. Both of these organizations work globally to ensure all people have access to clean water. In the Philippines, DAI specifically works to improve sanitation techniques. This has been accomplished through infrastructure projects that transport water in safer ways as well as education campaigns that teach communities how to check if the water is clean and how to clean it properly. Similar to this, Clean Water International has worked to increase sanitation. Both of these organizations maintain that proper sanitation is essential to access to clean water and have provided the funds to create proper water sanitation.

Access to Clean Drinking Water

Without access to clean water, communities are barred from work opportunities, exposed to disease and experience the effects of poverty at higher proportions. As seen in the Philippines, a multi-faceted and robust approach is needed to address this crisis and it requires the cooperation of all. The problem of lack of access to clean drinking water in the Philippines cannot be addressed simply by giving communities water bottles. It must be a ground-up approach that gives communities the tools to create and access clean water for years to come.

– Mary Buffaloe
Photo: Flickr

, , , ,

Automation in Southeast Asia Affects the Poor

Southeast Asia has been reducing its poverty level as a whole for the past decade. However, the rise of automation has now put the population back at risk. One of the largest industries in terms of employment in Southeast Asia is the production and manufacturing industry. The most common type of work found in this region is in small factories. These jobs are some of the most vulnerable to the effects of automation in Southeast Asia.

Affected Industries

Automation is the process by which labor or a job that is performed by a human switches to being done by a machine. In many cases, a robot is able to work faster and more efficiently than a person with the added bonus of not having a salary and never needing time off. Thus, the prospect of a workforce full of machines is very appealing to those looking to lower their labor costs.

Automation in Southeast Asia stands to put a large number of laborers out of work. The International Labor Organization reported that 73% of Thailand’s manufacturing workforce are at high risk of having their jobs automated. On a whole, the ASEAN-5 (Cambodia, Indonesia, the Philippines, Thailand and Vietnam) faces a 56% risk for employment being automated in the next two decades. The majority of workers affected will be those with both lower wages and lower levels of education. These are the types of jobs easiest to automate, which renders these workers as the most severely impacted demographic.

Further, the types of jobs created through automation, like machine operation and maintenance, require skills the lesser educated workers replaced by automation lack. In Vietnam, those with only a primary school education are three times more likely to have their job automated than someone with a secondary degree.

The Transition

These countries face an interesting problem. Through automation, they stand to gain much in the way of foreign investments and business. Southeast Asia has become a hub of global production, which provides many economic benefits. On the other hand, automation puts the lives of the working-class people in these countries in serious danger. Several countries in Southeast Asia have proposed new ideas to try and navigate through this transition.

The Indonesian Minister of Finance has proposed the implementation of a universal basic income. This has the possibility of alleviating the stress caused by job loss. The Government of Thailand has approved a tax incentive to boost automation within the country. The proposition aims to bring in foreign investors that would train Thai workers and create employment opportunities.

Conclusion

A smooth transition to automation will be crucial in keeping much of the population of Southeast Asia above the poverty line. It is fundamental to support workers in the age of automation in Southeast Asia. Most importantly, they need access to higher levels of education. Hopefully this issue will encourage these governments to provide more opportunities and training to their citizens. People can continue to work in meaningful ways in the age of automation through adequate aid.

– Jackson Bramhall
Photo: Flickr

, , ,

The State of Homelessness in the Philippines

homelessness in the Philippines
The Philippines is one of the fastest-growing economies in Southeast Asia, yet it is facing a homeless crisis. There are approximately 4.5 million homeless people, including children, in the Philippines, which has a population of 106 million people. Homelessness in the Philippines is caused by a variety of reasons, including lost jobs, insufficient income or lack of a stable job, domestic violence and loss of home due to a natural disaster. The government and non-governmental organizations (NGOs) are working to address this issue.

Causes of Homelessness

In the Philippines, families end up homeless for many reasons, including:

  • Poverty: Although the unemployment rate in the Philippines is low (5.3% in March of 2020), 16.6% of Filipinos’ wages remained below the country’s poverty line in 2018. Low income can make it difficult for many families in the Philippines, especially those living in Manila, to pay rent.
  • Domestic violence: Women and children in the Philippines are in danger of domestic abuse, exploitation and trafficking. Approximately one in five women between the ages 15-49 in the Philippines experience domestic violence in their life. Women who escape their abusive partners could lose their source of income and have difficulty finding a place to stay. Shelters for women tend to have long waiting list.
  • Human trafficking: In the Philippines, there are approximately 100,000 people trafficked each year. Many trafficked victims are promised jobs in the cities. However, after moving to a city, they are exploited and forced into prostitution.
  • Natural disasters: In addition, some families have lost their homes due to natural disasters such as typhoons, earthquakes and volcano eruptions. In 2019, more than 20 typhoons battered the Philippines. One of the typhoons that hit the country damaged over 500,000 houses. A volcano eruption that happened in January impacted half a million people and forced the relocation of 6,000 families.

Types of Homeless Families

According to the Modified Conditional Cash Transfer for Homeless Street Families (MCCT-HSF) program, homeless families fit into four different categories:

  • Families on the street: “Families on the street” represent 75% of the homeless population. They are families who earn their livelihood on the street, but eventually return to their original communities. This category includes both “displaced homeless families” and “community-based street families”.
  • Families of the street: “Families of the street” are families who live on the street for a long time and have created communities among themselves. They perform daily activities, like cooking, bathing or playing in the public spaces they live in. They are visible by their use of a “kariton,” also known as a pushcart that contains their family’s belongings, which they move around within Manila.
  • Displaced homeless families: “Displaced homeless families” are families who have lost their homes due to natural disasters or live in their communities. They are families who leave their rural communities of the Philippines to find a job in the cities. This category also may also include families and children who may be escaping abuses at home. Displaced homeless families may also push around a kariton that contains their personal belongings.
  • Community-based street families: “Community-based street families” are families who are from rural communities, but move to urban areas for a better way of life; however, they often end up returning to the rural area they are from.

Homeless Children

Homeless children are among the most vulnerable of the homeless in the Philippines. There are approximately 250,000 homeless children; however, that number could be as high as 1 million. Children leave home and end up on the streets because of the excessive beating from their parents, poverty or sexual exploitation.

When children are on the streets, they can face problems such as sexual exploitation, abuse and prostitution. Although victims of circumstances beyond their control, children who live on the street are often viewed as criminals or future criminals resulting in discrimination from the police. Additionally, to numb their pain and their hunger, some children may turn to drugs. Both the external and internal factors that children face make it very difficult for them to escape the street life.

Addressing Homelessness in the Philippines

The government, NGOs and religious institutions are working help the homeless. Government programs include the Modified Conditional Cash Transfer for Homeless Street Families program (MCCT-HSF). This program provides financial support, such as housing grants and funding for health and education, to homeless families in Metro Manila.

To help street children, ASMAE-Philippines travels the streets of Manila to teach kids on the basics of hygiene. The organization also provides children with school support, as well as supporting other NGOs in the area. Kanlungan sa ER-MA Ministry, Inc. is another organization that works to educate street children, though projects that teach children about hard work while providing them with an income.

Although the government and NGOs have made efforts to help the homeless population, much more still needs to be done. Moving forward, these initiatives need to be increased in order to significantly reduce homelessness in the nation.

– Joshua Meribole 
Photo: Flickr

, , ,

Financial Inclusion Through Technology

financial inclusion through technologyIn 2018, 1.7 billion adults worldwide, nearly 1 adult out of 3, still live without basic financial transaction accounts.

For the 1.2 billion people who did open financial accounts between 2011 and 2018, the problem is that many do not actively use their account. For example, in India’s initiative of financial inclusion in the early 2010s, nearly 90percent of the 100 million accounts opened are dormant, unused, or closed.

These are some of the daunting statistics that pose key challenges for universal financial inclusion by 2020 set by the World Bank. The goal is clear: getting people to open and maintain financial accounts.

Why Financial Inclusion?

Before discussing the mechanics of reaching universal financial inclusion, particularly for impoverished people in developing countries, why the push for financial inclusion at all?

The World Bank has released several studies that closely link poverty reduction, economic growth, and access to digital or physical financial services. In particular, for developing countries, empowering small farmers, merchants, and villages through financial stability and services can significantly improve their livelihood and economic security.

Additionally, financial inclusion, particularly through less formal means such as through microfinance or rotating savings and credit associations, has a key role in reducing social inequality for rural, poorer populations and women in developing countries.

What Are The Solutions?

Particularly in Southeast Asian countries, such as Indonesia and the Philippines, digital solutions to financial inclusion prove most successful. For example, a financial company in the Philippines, PayMaya, has opened doors to people across the country to allow new, emerging payment methods using QR codes. WeChat pay have partnered with a variety of businesses and mom-and-pop styled stores.

This strategy has worked, in part, due to the prevalence of smartphones in Philippines. The number of mobile phone users in the Philippines reached 74.2 million (out of a population 108.2 million), around 70 percent of the country’s population. PayMaya has also utilized the network of local vendors and merchants in the Philippines, which makes their service convenient and credible to impoverished populations who trust local merchants they have been going to for years.

Success in Indonesia

Indonesia is another success story of digital financial inclusion. For example, by making their G2P programs digital, welfare recipients receive payments directly to their digital accounts, which demonstrates the power that technology can have in reducing transaction costs and increasing convenience for those in need. Indonesia also has the regulatory framework to house a thriving banking industry and network of mobile operators. Indonesia has identified that 119 million adults are still excluded from financial services, but that, 100 million out of the 119 are smartphone users. So, the continued path forward for financial inclusion in Indonesia will be increased digitization of financial services.

What Is The Future of Financial Inclusion?

The examples of Indonesia and the Philippines shed light on broader discussions about financial inclusion from governmental organizations like the World Bank and companies like the International Finance Corporation. The success of Indonesia’s and the Philippines’ financial inclusion depends on lowering regulatory barriers, making financial options attractive and convenient, especially to poorer populations, and establishing strong social networks throughout the country.

Significant Barriers

These are exactly the barriers to reaching the last 1.7 billion excluded people, who are predominantly in developing countries. These populations often do not have enough money to open a bank account, lack the financial literacy to maintain a bank account, or simply do not trust brick and mortar institutions that do not have particular incentives to penetrate rural markets. Less formal means, such as microfinance or rotating savings and credit associations (ROSCAs), are more attractive because these systems pool money between trusted individuals, often friends or family, and allow people to save and borrow smaller amounts of funds that would not be enough to open a bank account.

World Bank Efforts

The World Bank has targeted several categories to develop over the coming years, such as creating a regulatory environment to enable access to transaction accounts, drive government-based solutions and programs for transaction accounts, focus on the disadvantaged, such as rural families and women, and digitize payments. The World Bank has identified 25 priority countries where nearly 70 percent of all financially excluded people live worldwide and are on track to reach 1 billion opened accounts by 2020.

From a corporate standpoint, PayMaya shows that financial inclusion offers a new, emerging market for financial and fintech companies, who have an economic incentive and profit motive for tapping into developing countries and helping to improve access to financial services. Digital finance has the potential to reach over 1.6 billion new retail customers in developing countries, with potential profits from the aggregate market estimated to be an astounding $4.2 trillion.

With both political will and economic incentive, the way forward seems clear: invest in digital solutions that partner with local networks and that work to tailor to the preferences of poorer populations, who may have low financial literacy and may mistrust large, corporate institutions.

– Luke Kwong
Photo: Flickr

, ,

8 Developing Countries Being Helped by the UNDP

Countries being helped by the UNDPThe United Nations Development Program (UNDP) is a U.N. network that aims to eliminate poverty, increase resilience in poor communities, improve access to education and develop policies in struggling countries. One of the UNDP’s major projects is the 2030 Agenda for Sustainable Development. This project focuses on 17 Sustainable Development Goals (SDGs) including no poverty, zero hunger, quality education, clean water and sanitation and climate action.

The UNDP works with multiple struggling countries around the globe to meet these goals. Out of the 170 countries and territories being aided, below is a list of eight countries being helped by the UNDP.

8 Developing Countries Being Helped by the UNDP

  1. Nigeria: Nigeria is home to the highest number of people in poverty in the world, making it one of the poorest countries being helped by the UNDP. Due to this, the UNDP’s main focus in Nigeria is eradicating poverty. Since a large percentage of the poor population are farmers, the UNDP is working to make agricultural progress in communities and addressing challenges faced in terms of sustainability. In addition, the UNDP is working to create more jobs and improve access to sustainable energy sources.
  2. Afghanistan: A large part of Afghanistan’s population faces issues with the quality of life. The UNDP in Afghanistan aims to fight extreme poverty and inequality for the most vulnerable. Significant progress has already been made in terms of education. In 2001, only 70,000 school-aged children in Afghanistan were attending school. Currently, eight million children are attending school. The UNDP worked with the Ministry of Economy in Afghanistan in 2015 to spread the importance of Sustainable Development Goals for the country.
  3. Nepal: Nepal is one of the poorest countries in Asia. Due in part to the UNDP’s efforts in Nepal, major progress has been made in terms of eliminating poverty. Within four years, the country has reduced the poverty rate from 25.2 percent in 2011 to 21.6 percent in 2015. Specific goals the UNDP has for Nepal include building resilience against natural disasters, improving education access and improving access to basic resources such as electricity and clean water.
  4. Côte d’Ivoire: Through the anti-poverty program that was established by the UNDP, more than a quarter of a million people’s lives have significantly improved in Côte d’Ivoire. Through this initiative, 62 community organizations received monetary donations, project funding and vocational training to help them progress and reach their goals. In terms of agricultural issues, due to this program, fishing equipment has become more easily available and affordable. In addition, crop diversity has increased, providing more income and food options.
  5. Syria: Syria is a war-torn, impoverished country. As a result, Syrian people face issues with access to basic needs. This includes housing, access to necessary services and basic needs for women and the disabled. In 2018, the UNDP introduced the UNDP-Syria Resilience Programme, that focuses on improving the livelihood of such vulnerable groups. Through this project, more than 2.8 million Syrians were able to receive aid and benefits. These interventions have also produced benefits on a larger scale, including the creation of jobs, productive assets distribution and vocational training.
  6. Thailand: A large percentage of Thailand’s population lives in rural areas. Major problems for the rural poor include human rights issues, considerable economic inequality and weak rule of law. In Thailand, the UNDP is supporting and providing aid to ongoing projects and operations dedicated to problems being faced by its citizens. A major program the UNDP is supporting is the Thailand Country Program which focuses on environmental regulation and economic development. The UNDP is also working with the Thai Royal Government.
  7. Bangladesh: One of the biggest problems faced by Bangladesh is natural disaster risk. The UNDP started a project in January 2017 which is an ongoing collaboration with the National Resilience Program, the government, the United Nations Office for Project Services (UNOPS) and U.N. Women. It aims to develop strategies to create lasting resilience against unpredictable natural disasters, shocks, and crisis, that strongly impact the poor community. Specific aims of the project include strengthening communities, improving recovery and response to disasters and local disaster management.
  8. The Philippines: Approximately 25 percent of the Philippines lives in poverty. The UNDP’s projects in the Philippines include development planning, policymaking and implementing sustainable practices. One of the main aims of the UNDP is to localize poverty reduction and increase community involvement. The UNDP is also going about development planning in a way that will include increasing the use of natural resources in a sustainable manner while reducing poverty.

– Nupur Vachharajani
Photo: Flickr

, , , , ,

Child Sponsorship Works

 child-sponsorship-works-borgen-project-compassion-international_opt
When people ask how to help the poor, child sponsorship often is suggested. Indeed, for a small amount of money each month, organizations allow individuals to sponsor a child and help to provide education, food, and clothing for them. In return, the sponsors get a picture of the child and quarterly or annual updates from the organization regarding their child.  It has long seemed like an easy way to make an impact. The question many people ask, however, is does it really work? One development economist decided he was going to find out.

It seemed no one had ever been interested in finding the answer despite the fact that 9 million children are sponsored worldwide and more than $5 billion dollars per year is invested in child sponsorship programs. For organizations, obviously the stakes were high. If they allowed researchers to study the effectiveness of their programs, what would they do if they came back ineffective? After several years, one organization decided to allow themselves to be studied under one condition: anonymity.

The study initially looked at individuals in Uganda, studying 809 individuals including 188 who were sponsored as children. The results from the first study were any economist’s dream. The data clearly showed large and statistically significant impacts on the educational outcomes of sponsored children. It appeared the program was actually working! To solidify the results, the study was conducted in six other countries: Uganda, Guatemala, the Philippines, India, Kenya and Bolivia. Data was obtained on 10,144 individuals and the results were consistent with the first study. 27 to 40% more sponsored children complete secondary school and 50 to 80% more complete a college education. In addition to effects on education, the study found that sponsored children were also more likely to gain meaningful employment.

As a result of the study, the sponsorship organization removed the anonymity clause. Compassion International was the organization that allowed its program to be scrutinized; the results were clear that child sponsorship works. It helps lift kids and families out of poverty and provides them with hope. For more information about child sponsorship, visit Compassion International at www.compassion.com.

– Amanda Kloeppel
Sources: Christianity Today, Compassion International