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Past and Present Poverty in Moldova

Poverty in Moldova
Moldova suffered an economic collapse after achieving independence in 1991. Poverty in Moldova has remained high for decades with its previously weak economy and the added burden of multiple global recessions. The country continues to face the same issues in 2020. Here is some information about the severe levels of poverty in Moldova.

An Unstable Population

The foundation of a nation’s economy relies heavily upon its people. In the case of Moldova, however, the unstable population has led to a highly volatile economy.

The official population of Moldova is 3.5 million. However, estimates determine that the true figure is much less due to a significant level of out-migration ​with people seeking work in other countries. The World Bank stated that this “puts pressure on the pension system and limits the available labor force and the country’s long-term competitiveness.” As a result, poverty in Moldova will likely continue to be an issue for the foreseeable future.

Decreased fertility rates are also contributing to the unstable population. The total fertility rate (TFR) at which a population replaces itself from one generation to the next is roughly 2.1 for most countries. However, as of 2020, Moldova’s rate was 1.3. As women have fewer children within Moldova, the overall population is contracting, leaving the increased share of elderly people with very few young people to care for them in the future.

Natural Disasters

Many regions of Moldova are at increased risk of earthquakes and flooding. This has a significant impact on the economy because over half the population lives in rural areas and more than 40% of the economy relies on industry and agriculture.

Many citizens are at risk of natural disasters. People in areas of higher risk of natural disasters also suffer from weaker economies as a result. The province at greatest risk of floods and earthquakes is Chisinau–the region with the greatest GDP. However, since the region is also at high risk for natural disasters, this inevitably leads to a more volatile economy that takes significant hits during flooding and earthquakes.

According to the World Bank, natural disasters impact up to 3% of the region’s GDP, leading to a potential loss of $66 million. These events can damage arable land, create food shortages that leave people hungry and cause people to suffer from injury or loss. Environmental challenges can significantly impact the lives of citizens and drag the most vulnerable peoples of Moldova into poverty.

Sanitation and Health Care

Currently, millions of Moldovans must choose between their paycheck and their health as 60% of the economy in Moldova is service-oriented. The current global economic crisis that began as a consequence of the COVID-19 pandemic will likely continue to impact Moldova significantly. According to the World Bank, it “will lead to a contraction of Moldova’s economy in 2020.” Assuming that the country can largely contain COVID-19 later in 2020, estimates determine that the nation could still suffer through an economic recession of 3.1% that could subsequently increase poverty in Moldova.

Corruption in the Government

Moldova became an independent republic in 1991 after the collapse of the Soviet Union. However, the new nation has massive corruption within the government. In 2015, a banking scandal that “led to public discontent over high levels of corruption and poor living standards for citizens” led to an upset in Moldova’s economy. This transgression included the embezzlement of $1 billion by government officials, accounting for around 12.5% of the country’s GDP.

Governmental instability has driven money away from programs to help alleviate the suffering of the poor and into​ the wallets of elected officials. As a result, poverty in Moldova continues without the proper economic resources necessary to combat it.

Why Hope Persists

Even in these unprecedented times, the many projects that work to improve education, entrepreneurship and welfare within the nation have given the Moldovan people a beacon of hope. Although the COVID-19 pandemic has impacted an estimated 1 billion students worldwide, young people in Moldova have been able to engage in home-based learning both online and offline.

The Moldova Education Reform Project is supporting the nation’s education system in order to cope with the current pandemic and prepare for its upcoming recovery. This governmental effort has ameliorated a reported nine schools and given them the technology necessary to enable students to continue learning remotely despite the current quarantine. A total of 160 schools in Moldova will benefit from the program by the end of 2020.

By building resilience for the world’s challenges, students in poverty in Moldova are preparing themselves for better and brighter futures. The government acted by implementing emergency measures. These should protect businesses from immediate bankruptcies after streams of a crippling demand shock, disrupted supply chains and a lockdown. These measures should also help prevent unnecessary shut-downs and layoffs by providing qualifying businesses with liquidity while supporting employee retention and improving services through e-governance reforms.

Through these programs, the government has protected many citizens from moving further into poverty. These measures should allow the economy to continue to grow after the recovery period is complete. Ultimately, when considering the current circumstances for Moldova, one sees both the adversities and the victories. As complex as the issue of poverty is, with proper projects, education and economic goals, poverty in Moldova should reduce.

– Daniela Canales
Photo: Flickr

International Cooperation in the Fight Against Locusts

The Fight Against Locusts
Asia, the Middle East and Africa are in a battle with an entity that threatens the food security of 10% of the population. This problem has come and gone before and goes by the name of the desert locust. These locusts fly in swarms of 10s of billions, in coverage ranging from a square third of a mile to 100 square miles. For reference, a swarm the size of one-third of a square mile could eat the equivalent of 35,000 people.

The leading cause of the sudden outburst of locusts is the months of heavy rain that Africa and Southwest Asia had towards the end of 2019. Locusts thrive in wet conditions when breeding and the rain sparked a massive emergence of the bugs.

The locusts could become the cause of food insecurity for millions of people. The reason for this is the sheer number of insects and also how quickly they can travel. They swarm from one food supply to the next, while moving from one country to the next within days. When they decide to land in a town or city that seems to have an abundance of crops, they will eat anywhere from 50 to 80% of all the plants. This has resulted in many countries and international institutions increasing cooperation, as the locusts do not discriminate against which country they deplete of resources. Below are five of the ways that collaboration has developed in the fight against locusts, which highlights the importance of working together during national emergencies.

5 Cases of International Cooperation in the Fight Against Locusts

  1. The World Bank has put together a $500 million program called The Emergency Locust Response Program to immediately assist farmers in the Middle East and Africa. This will help the citizens of affected countries with cash transfers, and will also go towards investing in agricultural industries. The first four countries that will receive the aid are Djibouti, Ethiopia, Kenya and Uganda. They will collectively receive $160 million of the $500 million total.
  2. The National Oceanic and Atmospheric Administration has paired with the United Nations to strengthen technology that tracks locust swarms. The administration typically helps track weather and other changes in the environment, but now will use its resources to help monitor the locusts. It is trying to re-purpose technology to track smoke in order to follow the migration of locusts. This will help prepare countries and cities better, as they will have a more accurate prediction of when the swarms will reach them. These institutions are also developing different types of bio-pesticides, which will have less of an impact on humans and crops.
  3.  India has offered a detailed plan to Pakistan and Iran to team up against the swarms effectively. Pakistan has yet to accept the deal, but if accepted, the countries would “coordinate locust control operations along the border and that India can facilitate the supply of malathion, a pesticide, to Pakistan.” The plan originated in hopes of trying to save some of the estimated $3 billion of lost crops within the affected regions.
  4. The United States Agency for International Development (USAID) has contributed $19 million to the FAO to fight the locusts in East Africa. The money will go to Ethiopia, Kenya and Somalia, which are three of the worst-hit countries. The aid will help these countries afford airplanes to perform aerial spraying and training for infestation fighters on the ground.
  5. The Bill and Melinda Gates Foundation has committed another $10 million to the FAO. This money will go towards the same countries as the USAID contribution went to. The countries have gratefully accepted the money, yet still need more support. However, contributions from organizations like the Bill and Melinda Gates Foundation are closing the gap between necessary resources and obtained resources.

The cooperation between organizations and countries in the fight against locusts proves to be the silver lining of the infestation. International institutions are effectively planning, tracking and coordinating efforts to minimize the problem for farmers and food-insecure people around the world.

– Aiden Farr
Photo: Pixabay

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Recent Progress: Addressing Poverty in Colombia

Poverty in Colombia
Macroeconomic trends show there has been equitable growth in Colombia. While as of 2017, Colombia held the second-highest wealth inequality rate in Latin America, only slightly better than Brazil, it has been on a downward trend since 2000. Additionally, poverty in Colombia dropped by 15% between 2008 and 2017 to a low of 27%. Extreme poverty reduced by half from 2002 to 2014, with more than 6 million people moving out of poverty. This put more Colombians in the middle class than in poverty for the first time. Finally, between 2008 and 2017, the country’s gross domestic product (GDP) grew at a rate of 3.8%. This is more than twice as fast as the members of the Organization of Economic Cooperation and Development (OECD).

Problems

However, increasing exports drive much of the recent growth and reduction in poverty in Colombia. Commodity prices have risen significantly over the past several years. This growth is unsustainable, as a recent drop in prices has hindered the export industry. Colombia has also been struggling with such issues as a lack of financial inclusion, low productivity, low-skilled workers and a large informal economy.

The informal economy consists of such jobs as farm workers, taxi drivers and street vendors where “they make no direct tax contributions, have no security of employment and do not receive pensions or other social benefits.” As of May 2014, informal workers made up nearly two-thirds of the Colombian labor force. This means millions do not possess a dependable income. They do not have the opportunity to contribute to or receive a pension fund or other government benefits. For these reasons, the large informal sector is also a big contributor to inequality and poverty in Colombia.

Another major issue holding back Colombia has been its decades-long internal struggle for peace. Nearly a quarter-million Colombians have died from the conflict, with 25,000 disappearances and nearly 6 million displaced. Although a peace agreement was reached in 2016, tensions are still high in the country between the government and the rebel militia.

Solutions

Nonetheless, steps are occurring to ensure that Colombia is able to continue its recent progress. With nearly 6 million people displaced because of the internal conflict, land restitution is a key step to make. With the help of the World Bank, 1,852 land restitution legal cases occurred by the end of 2014. Additionally, the World Bank helped the Colombian government give reparations to those the conflict affected, with a focus on Afro-Colombian and indigenous groups who the conflict disproportionately affected.

Some are using digitalization and technology to help formalize businesses by simplifying the registration process and making tax collection more efficient, enabling businesses and individuals to pay taxes and contribute to the pension system and providing them access to many social benefits. Digitalization also provides greater access to financial services. This is occurring by providing micro-credits, expanding the outreach of banking services, lowering the cost of financial services and simplifying electronic payments.

USAID’s Role in Poverty Reduction in Colombia

The United States Agency for International Development (USAID) has also helped decrease poverty in Colombia by increasing the presence of democratic institutions in the country. Through this, the USAID hopes to “foster a culture of respect for human rights, promote access to justice, increase public investment and provide services to historically underserved and conflictive rural areas.” This organization fights for inclusive growth and encourages investment in rural areas. Additionally, it helps producers expand their market, provides financial services and helps restore the land to its original owners before the conflict.

All of these efforts and many more are helping reduce poverty in Colombia. The goal is to keep the country on a path toward equitable and inclusive development that leads to a reduction of inequality.

– Scott Boyce
Photo: Flickr

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5 Facts about Poverty in Uzbekistan

Poverty in Uzbekistan
Situated between Kazakhstan and Turkmenistan sits the culturally rich and beautiful country of Uzbekistan. With thriving cities and lush mountainsides, Uzbekistan’s environment makes for blossoming communities. However, the country and communities within it have drastically changed within the last two decades. The Uzbekistan government has successfully lowered poverty rates, decreased unemployment rates and increased education, although these instances rarely make headlines. Here are five facts to know about poverty in Uzbekistan.

5  Facts About Poverty in Uzbekistan

  1. A Large Drop in Poverty Rates: The poverty rate has decreased by a staggering 14.7% in less than a decade. The national poverty rate in 2015 was 12.8%, in comparison to 27.5% in 2001.
  2. The Issue of Unemployment: In 2019, 5.9% of Uzbekistan’s population did not have employment, and 19.7% of those unemployed made less than $2 a day. A lack of job opportunities and a distinct living standard between those in urban and rural areas are only some challenges the country is facing. Due to unemployment, many choose to migrate to Kazakhstan or Russia in hopes of more opportunities to send money back home to loved ones.
  3. Maternal Mortality: In 2000, the maternal mortality rate was 33.1 for every 100,000 births. By 2013, that number had fallen to 20. The fertility rate and the number of unplanned pregnancies had also decreased. Further, rectifying vitamin A, iodine and iron deficiencies as well as affordability and effectiveness have become critical in the development of national health care programs.
  4. Growing Access to Education: In 2017, only 29% of children between the ages of 3 and 7 had been enrolled in educational facilities. The Uzbekistan government, through a project in collaboration with the World Bank, predicts that 40% of children within that age range will be part of education programs by 2024. The project aims to combat the high student-to-teacher ratio and create remote learning programs for those in rural areas. Access to education is one of the most important ways to fight poverty. Education helps reduce inequality, strengthen the economy and lower the risk of vulnerability.
  5. Water Access: In March 2020, Uzbekistan accepted a $239 million credit from the World Bank to invest in a water service project. This project aims to reduce water loss and energy usage through improved sewage infrastructure within five communities. When the project reaches completion, more than 500,000 people throughout Uzbekistan will have access to clean water. Access to water will help those in rural areas become more sustainable. Staying clean, hydrating and growing crops will become more available.

Looking Ahead

With a continuous decrease in poverty rates and an increase in educational and sanitation infrastructure, Uzbekistan has made large strides to improve the lives of its citizens. Poverty in Uzbekistan has dramatically shifted over the last two decades. Unemployment rates have dropped, neonatal mortality rates have decreased by more than half and resources such as education and clean water are becoming more accessible to all communities. With progress like this, Uzbekistan is on its way to great improvement.

– Hannah Kaufman
Photo: Flickr

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How COVID-19 Has Impacted Artisanal Gold Miners in Burkina Faso

How COVID-19 Has Impacted Artisanal Gold Miners in Burkina FasoThe COVID-19 pandemic has disrupted gold supply lines around the world. That disruption, along with the recent uncertainty around global health security, has dealt the artisanal gold miners of Burkina Faso a severe blow. Prior to the pandemic, local gold prices in Burkina Faso were 94 percent of international gold prices. After COVID-19 hit the nation in March, local prices fell to just 55 percent of international gold prices.

Artisanal gold mining has continued in Burkina Faso, though more slowly than before the pandemic. Measures to control the spread of the virus, such as curfews, social distancing and even police violence and raids by national security guards, have slowed the pace of gold panning. This means the miners have even less opportunity to make a livable income.

Why It Matters

Of the over 20 million people in Burkina Faso, over 430,000  are directly employed in the artisanal gold mining industry. Most of the miners have little education and rely on mining to provide for themselves and their families. The miners include both men and women, with studies estimating that between 40 and 50 percent are female. Women run most of the hangars in which the gold is processed. These women are known as Tãngpogse and have enjoyed more economic freedom than many women.

The disruptions caused by COVID-19 put all of these artisanal gold miners at risk. Even before the pandemic, 45 percent of people in Burkina Faso survived on less than the U.S. $1.25 per day. Artisanal mining is an industry employed by people trying to escape poverty. Now, instead of realizing that dream, miners are facing uncertainty and hunger.

To make matters worse, the COVID-19 crisis is piling on top of other crises in Burkina Faso—jihadist violence in the north, and drought throughout much of the country. In the face of this complicated situation, many gold miners are struggling to feed themselves and their families. Many find that they must sell their gold at low prices to predatory buyers, in order to generate an income. If the situation worsens, the miners could find themselves increasingly desperate, and willing to turn to banditry or prostitution for income.

How World Agencies Are Helping

Two world agencies have stepped in to provide relief for artisanal miners. The first, the World Bank, has created an emergency relief fund for artisanal miners around the globe. According to Reuters, the fund already has $5 million in donations, with a goal of $15 million. This money will aid miners of various materials in different countries, not just Burkina Faso. Still, the World Bank’s effort is an important one. World agencies rarely aim for emergency relief at artisanal miners specifically.

The second world agency, the Artisanal Gold Council, is an NGO based in Canada. The Artisanal Gold Council has focused specifically on the artisanal gold miners of Burkina Faso and has purchased gold directly from them at the pre-pandemic rate. This business provides miners with much-needed income and should help to ease some of the economic stress they are under. As with the World Bank’s emergency relief fund, the Artisanal Gold Council’s actions are rare for an NGO; other organizations consider the money and effort necessary to bring artisanal gold into formal channels of the trade too high of a price to pay.

Aid from these world agencies should improve the artisanal miners’ economic situation. Still, the high poverty rate and continuing cases of COVID-19 in Burkina Faso remain causes for concern. As of July 1, Burkina Faso had reported a total of 962 cases of COVID-19, and 53 deaths from the virus. As the pandemic’s effects linger on, the miners will need more help to finally achieve their dreams of climbing out of poverty.

– Emily Dexter
Photo: Flickr

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Decreasing Poverty in Ethiopia

Decreasing Poverty in Ethiopia
There have been both strides and setbacks in recent years in the process of decreasing poverty in Ethiopia. Poverty in the region has been steadily falling. Several factors, including increased agriculture and a decreasing fertility rate, are responsible for this decline. However, the developing nation needs to do much more to stay on track.

The poverty rate in Ethiopia has been on a steady decline for the last 10 years. As a result, the country’s health and quality of life have been improving. The World Bank reported that the national poverty rate decreased from 29.6% to 23.5% between 2011 and 2016. Here is a breakdown of what is decreasing poverty in Ethiopia. 

The Agricultural Factor

One of the main ways that Ethiopia has improved its poverty rate is through increased agricultural activities, which are the backbone of its economy. Data from 2018 shows that the majority of the population, approximately 80%, live in rural areas. Additionally, the World Bank estimated that in 2018, approximately 67% of employment was in agriculture. For Ethiopians, agriculture is a vital part of their income. As a result, one of the most effective ways of targeting poverty in Ethiopia is stimulating the agricultural industry. 

The Ethiopian Agricultural Transformation Agency has been identifying and remedying obstacles in Ethiopia’s agricultural industry since 2010. According to the ATA’s website, it operates “in order to provide a platform to address the most critical systemic bottlenecks constraining fulfillment of agriculture sector goals and targets identified by the government.”

Another project that is positively impacting Ethiopia’s agricultural industry is the Second Agricultural Growth Project. This project began in 2015 and aids in commercializing and increasing agricultural production.

All of this work has been paying off. According to a report published by the International Food Policy Research Institute, Ethiopia’s total agricultural output in 2013/14 had risen an impressive 124% since 2004/5. With agriculture playing such a large role in Ethiopia’s economy, a continued focus on expanding and commercializing this sector of the economy should continue to help eradicate poverty in the country.

The Fertility Rate Factor

Another factor affecting Ethiopia’s poverty rates is a decrease in the fertility rate. The fertility rate is a measure of the average number of children per woman. In Ethiopia, the fertility rate has fallen from approximately 6.5 children in 2000 to 4.2 children in 2018. Fertility rates often correlate with poverty because the birth of fewer children results in a smaller drain on the nation’s resources. Countries with lower fertility rates can often offer better resources to citizens because more resources are available to each child.

Setbacks

While the nation is working towards overcoming poverty, it still plagues daily life in many ways. One particular effect of poverty on public health is a lack of resources for maintaining hygiene, which is particularly vital in the era of COVID-19. A lack of running water in the country has led a chunk of the population, around 22%, to practice open defecation. This practice has many health risks for the Ethiopian public, as it often leads to people coming into contact with fecal pathogens.

Another hygiene-related issue tied to poverty in Ethiopia is a lack of running water to wash hands. In Ethiopia, approximately 30% of the population is without a facility in which they can practice basic hand washing. During the era of COVID-19, hand washing is more important than ever, and this lack of washing facilities could be detrimental to the country.

Steps Forward

The Water, Sanitation and Hygiene Project at World Vision Ethiopia has made great strides in providing clean drinking water and sanitation to Ethiopia. WVE’s project “principally aims to reach children and families with a holistic suite of WASH interventions.”

WVE has made a big difference since it started the WASH project in 2011. Between 2011 and 2018, WVE successfully provided 2.4 million Ethiopians with dignified sanitation. In addition to this success, it was also able to make sure that 2.45 million Ethiopians are practicing good hygiene.

In addition to the WASH project, WVE also works to fight disease and sickness. The organization’s programs contribute to the health of more than 3.5 million vulnerable children in Ethiopia. Over the past 10 years, the organization has successfully built a hospital, 55 health centers, 257 health posts and 131 additional maternity blocks. The programs also renovated 11 outdated facilities and worked to provide the facilities with the necessary equipment.

WVE has also committed itself to combat illiteracy in Ethiopia, a necessity in any developing country. It offers a literacy program to children in Ethiopia, which is to help the children further their reading skills.

Over the past 10 years, there have been great steps forward towards decreasing poverty in Ethiopia. While these improvements are cause for celebration, it is also vital to address the poverty that still exists in the developing nation. All too often, people see progress as a sign that efforts are working and that they can simply maintain them or even cut them back. Ethiopia’s recent success is an encouraging sign, but one that needs to spur, not curtail further action.

– Sophia Gardner
Photo: Flickr

The State of Healthcare in South Africa

Healthcare in South Africa

While South Africa has come a long way since the pre-Mandela era, many still largely view it as one of the most unequal countries in the world. The history of apartheid in South Africa still plagues many sectors of its government, especially its healthcare system. Glaring racial and wealth disparities among South Africans contribute to unequal access to high-quality healthcare services. Here is some further information about the state of healthcare in South Africa.

Positive Outcomes Post-Apartheid

Two years after Apartheid ended on April 27, 1994, South Africa developed a new Constitution that included a Bill of Rights. A new law under Article 27 stated that every person has an entitlement to healthcare in South Africa, including the right to reproductive care and guaranteed emergency medical treatment. It also states that the government must have measures in place in order to properly carry out these programs.

Since its implementation, life expectancy ages have risen from 54 in 2005 to nearly 63 years as of 2018, along with a continued decrease in the mother-to-child transmission of HIV. While healthcare services and medical treatment have dramatically improved since the 90s, equal accessibility is still a huge problem within the country.

The Public Versus Private Health Sector

While public healthcare is legally available to everyone in South Africa, it comes with an enormous shortage in proper supplies, functioning machinery and high-quality services. Along with this, it includes virtually guaranteed long wait times, hasty appointments and unavailability of skilled doctors. Only five of the 696 public hospitals meet most of the nation’s standards, which include services to contain infectious diseases and to provide prescriptions and medications.

This is not the case within the private health sector. Only 14% of South Africans pay for private health insurance, but more than half of healthcare funds go to that 14%. They have access to 70% of the country’s doctors, whereas the rest of the population utilizing public healthcare have access to far fewer doctors.

Racial Disparities

At first glance, there seems to be a battle between government services and for-profit insurance companies within healthcare in South Africa. However, it is increasingly clear that there is a divide between the historically elite and systemically poor.

In 2018, the World Bank named South Africa as the country with the worst inequality in the world. As of 2015, about 55% of the country’s population lives on less than $5 a day. Meanwhile, the lower-bound poverty line of $1.50 a day includes 47% black Africans, 23% mixed race people and less than 1% white people. The history of apartheid is far from gone because it has created a system with a lack of opportunities for all citizens. While South Africa may have legally outlawed discrimination, many still practice it, and data outlining who has access to high-quality healthcare clearly shows this.

Projects and Initiatives to Improve the State of Healthcare in South Africa

South Africa is trying to completely nationalize its healthcare by 2026 through a National Health Insurance (NHI) proposal. The country first implemented it in 2012 and will carry it out in phases over 14 years. Under the full program, citizens will be able to receive care at clinics and hospitals at no charge, but will also have the option to seek and pay for private care if they desire. If South Africa implements it as planned, it should help to reduce the number of those seeking private insurance and allow for the reallocation of funds to the public sector. In order for this to properly happen, government elites will have to examine how to break down their own history of systemic racism.

The SAME Foundation (the South Africa Medical and Education Foundation) works to provide high-quality medical services to everyone receiving public healthcare. The Khayelitsha Hospital in Cape Town was incredibly under-resourced and over-crowded, particularly in its Emergency Ward and Mental Health Ward, leaving many patients sleeping and getting treatment on the floor.

In 2018, SAME provided the Emergency Ward with 16 new stretcher beds, a ventilator, an x-ray machine, a diagnostic set and an HB tester. Doctors can now provide higher quality care for more patients at any given time. The new equipment gives more accurate results, as well as performs certain tasks that the doctors would otherwise have to do by hand (i.e. continuous CPR versus a ventilator). Within the Mental Health Ward, SAME raised enough money to provide 65 new beds that have rounded edges, are easy to clean and are waterproof and flame retardant. These efforts have created a more positive and safe environment, as well as restored patient dignity.

The overall state of healthcare in South Africa could certainly improve within its public sector, however, the country is actively trying to overcome decades of segregation and current practices of de facto discrimination in order to provide high-quality services for all citizens. With the help of NGOs, and as South Africa continues to implement the new health initiative over the next few years, only time will tell if the goals of the country meet with equality and justice.

– Stephanie Russo
Photo: Flickr

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Examining Poverty in Rwanda

Poverty in Rwanda
Rwanda is a small landlocked country in the center of Africa. With a sprawling savanna in the east and mountainous jungle in the west, the country has impressive natural features that have increasingly drawn international intrigue. Beyond Rwanda’s natural wonders, there have been great strides to combat poverty in Rwanda since the 1994 genocide in which 800,000 people died in 100 days. While the country faces substantial obstacles, there are many positive indicators of Rwanda’s future economic stability.

The Good News

Over the last two decades, Rwanda has shown an average annual GDP growth rate of 7%; this is consistently above the average in Sub-Saharan Africa. Another promising factor is that Rwanda has an increasingly diverse economy. Traditional sectors, such as agriculture and services, are contributing alongside emerging sectors, such as electricity, infrastructure and construction. Tourism has also been a key factor and now contributes to 10% of the national GDP.

Due to these economic advances, Rwanda has become the darling of the World Bank. The World Bank consistently invests hundreds of millions of dollars in public improvement projects in areas ranging from education to renewable energy. The results of those projects are promising. From 2009 to 2019 national electricity access jumped from 9% to 47%. Additionally, through the World Bank-supported Rwanda Urban Development Project, six cities have directly benefited from a massive increase in urban roads and stand-alone drainage.

The Obstacles

Poverty in Rwanda is still significant; around 38% of the population was living below the poverty line as of 2016. One contributing factor is that Rwanda suffers from a poor education system where only 68% of first-graders end up completing all six years of primary education. Another component is that domestic private investment in Rwanda has yet to take off, mainly due to low domestic savings. Additionally, many rural Rwandans operate subsistence farms and thus have little disposable time and income.

According to The Washington Post, the authoritarian streaks of Rwanda’s President, Paul Kagame, are another hindrance to the alleviation of poverty in Rwanda. In recent years, tourists have marveled at the clean streets of Rwanda’s cities. What those tourists cannot see, is the forced removal of “undesirables” into detention centers.

In rural areas, the government has burned farmers’ fields because they did not grow their assigned crops. Rural residents have also had to deal with Kagame’s heavy-handed approach to modernization. In some villages, Rwanda’s regime has stripped villagers of their grass roofs with the promise they would return with metal replacements. When the new roofs do not come residents live in exposure which leads to illness and fatalities.

Some of Kagame’s policies have drawn international outrage. In 2012, Kagame supported Congolese rebels which resulted in the United States and the European Union suspending international aid. Another similar scenario may be on the horizon with recent reports of Kagame’s regime manipulating poverty statistics.

In 2019, a Financial Times analysis of poverty statistics found that the government was misrepresenting data to exaggerate the decrease in poverty. Despite that claim, the World Bank has continued its myriad of investments in the country and so have many other major donors. However, as countries on a global scale focus more resources domestically due to the COVID-19 pandemic, international aid to Rwanda is in danger. Aid is still necessary to prevent catastrophic consequences as Rwanda is experiencing a dire humanitarian situation. The silver lining is that many of Rwanda’s usual donors are still in positions to assist.

The pandemic has also adversely affected tourism and exports, which are huge pillars of the Rwandan economy. Furthermore, as the country directs its healthcare workers and fiscal resources towards emergency response, other health concerns, such as the AIDS epidemic, move to the sidelines.

Hope for Poverty in Rwanda

Though Rwanda has problems that it cannot easily solve, there still is hope. Before the pandemic, Rwanda’s economic growth exceeded 10% in 2019. A two-thirds drop in child mortality and near-universal primary school enrolment accompanied this statistic.

Additionally, two World Bank-funded projects including the Rural Sector Support Program, and the Land Husbandry, Water Harvesting and Hillside Irrigation Project have increased the productivity and commercialization of rural agriculture. As a result, maize and rice yields doubled and potato yields tripled between 2010 and 2018. These results are especially promising considering poverty in Rwanda is the most severe in rural areas.

Rwanda has also achieved a strong level of political stability. Women make up 62% of the national legislature and previously marginalized opposition parties have gained parliamentary seats without disrupting the system’s stability. These are indicators that will increase confidence in foreign investors. While Rwanda has a troubled history, the future holds a lot of potential.

– Cole Penz
Photo: Wikimedia Commons

The Outlook of Poverty in Honduras

Poverty in Honduras
Honduras is a large, scenic country located in Central America with a population of nearly 10 million people. Historically, its abundance of natural resources has staked it as a vigorous player in many international economic industries, namely agriculture and mining. The country has also grown in many statistical categories; its population, global rank and GDP growth rate have increased steadily in the last five years. Ostensibly, Honduras has a strong foundation for economic prosperity, which should be encouraging for all of its citizens and leaders. However, a closer examination reveals that these improvements mask poverty issues that the country continues to struggle with. This struggle leads to poor quality of life for the average citizen of Honduras. Here is some information about poverty in Honduras.

Economic Problems

The main problems that cause poverty in Honduras are wealth distribution and low income. These issues impact an alarmingly high percentage of the country’s population. According to the World Bank, about 48.2% of the population lives below the poverty line, which includes over 60% in rural areas. Urban areas exhibit a lower percentage of impoverished citizens, but it remains high among global standards. Honduras frequently ranks high globally on the GINI index, which calculates the level of economic disparity among classes, and hosts a diminutive middle class, making up a mere 11% of the population.

Employment rates are dismal as well, with unemployment/underemployment around 40% as of 2015. Underemployment manifests itself in two different ways: when a person is working a job not commensurate with their skills due to a lack of opportunity (invisible) and when a person is working insufficient hours at a job or receives insufficient pay to support their family (visible). An example of invisible underemployment is a local man who has the requisite talent and education to be a lawyer. A scarcity of opportunity in his area leads him to a mining job that pays less and is much more physically grueling. Underemployment is rampant in Honduras and contributes to working-class people that have low morale and scarce opportunity to excel in their field of choice.

Other Factors Affecting the Economy

Violence is the largest internal factor in punctuating the nation’s economic problems. Honduras is among the deadliest countries in the world, according to the World Bank. The high rates of homicide and violence are detrimental in many ways including how they impact education. According to a U.N. agency report, more than 200,000 children stopped attending school between 2014 and 2017, due to the prevalence of gang violence in and around the school environment. The report also gathered that teachers were the third-most displaced group between 2016 and 2017. The Honduran government documented 83 murdered teachers between 2009 and 2014. Additionally, there were more than 1,500 student deaths due to gang violence between 2010 and 2018. The expansion of gang culture makes education secondary to survival. This problem has stunted the system for years, translating to a lack of skilled labor and vibrant industry.

Another antecedent to structural poverty in Honduras is political instability. The Economist Intelligence Unit Democracy Report labeled Honduras as a hybrid regime, which is where a country holds elections that are susceptible to voter fraud and manipulation. As recent as 2017, the country endured an election crisis that led to nationwide unrest, rioting and dissension on the premise of suspicion that the voting had been rigged. Tenuous leadership has let corruption run rampant, economic disparity worsen and access to food decline.

The Solution

Organizations such as Proyecto Mirador and CARE/Cargill are working diligently to quell poverty in Honduras. The former is a project that provides stove-building jobs for families. This initiative creates an easy and profitable venture for lower-class people who have no other options. Its website reports that builders have constructed and installed more than 185,000 stoves in Honduras. Meanwhile, CARE and Cargill partnered in 2008 to create an initiative that supports women in agriculture, both nutritionally and economically. The program is investing $10 million over three years in Village Savings and Loan Associations. It also employs advocacy strategies designed to ignite agricultural policy change that benefits the lower-class farmer. The partnership originated in Honduras and has now expanded to reach 10 countries in total, directly impacting nearly half a million people as of 2018.

The United States has intervened in many Central American countries to mitigate gang violence with Project GREAT, a police-taught gang violence prevention program. The program aims to teach young people how to avoid gang life and to repair the fractured relationships that many of these communities have with local law enforcement. Project GREAT gathered 87,000 student participants in 2017, hoping to breed a sense of optimism among the young community. By doing so, Project GREAT seeks to dissolve the presence of gangs in the future.

Beating poverty in Honduras requires systemic change initiated from the top. It takes resources, both internal and external, to silence gang culture, restore safe education and uproot government corruption. Once the lower class of Hondurans begins to escape the cycle of poverty, that is when economic industries will begin to thrive. The future of Honduras relies on the viability and strength of its youthful working class.

– Camden Gilreath
Photo: Unsplash

Babban Gona Expands Farming in Nigeria

Farming in Nigeria
Farming in Nigeria makes up a significant part of the Nigerian economy with agriculture accounting for more than 20% of the country’s gross domestic product. However, even with the large number of people who make a living by farming, around 20 million people are facing unemployment in the country. With this in mind, Kola Masha set out to create an enterprise that would promote farming in Nigeria while also reducing the rate of unemployment. This goal led to the founding of Babban Gona, an enterprise Masha hoped would change the world of Nigerian farming for the better.

Poverty in Nigeria

As of 2018, approximately 82 million Nigerians were living in poverty, which is defined as living on $1.90 a day or less. The population of Nigeria is approximately 200 million, meaning about 40% of Nigerians are living in poverty. There are many reasons for the high poverty rate in Nigeria. The social unrest in the country as well as the regional inequality between Northern and Southern Nigeria both contribute to the poverty rate. However, one of the most critical reasons for the large number of people living in poverty is the lack of job opportunities.

Babban Gona

Faced with the growing unemployment rate of Nigeria, Kola Masha decided to found Babban Gona in 2012. The goal of the enterprise is to create more jobs by expanding crop production in rural areas of Nigeria. It focuses mostly on maize production and farming in Nigeria. The organization is currently working towards the goal of creating 10 million jobs by 2030. Though no easy feat, Babban Gona has gotten a good head start, as it already has over 100,000 members in six different Nigerian states. Masha believes that agriculture is the industry best fit for job expansion in Nigeria and is extremely hopeful that the industry will help create many more jobs.

The ‘Great Farm’ and What it Does

Babban Gona, which translates to “great farm” in Hausa language, works by providing its members with different farming-related aides that will help enhance their crop production. The company focuses on financial services, agricultural input services, training and development and marketing services. Once a farmer becomes a member of Babban Gona, they automatically have access to training that will ensure they are using the best techniques possible.

Agents of Babban Gona often teach members about water retention, seed planting and sustainable farming, among other essential farming methods. Babban Gona also provides members with storage facilities during the harvest season, which keeps crops from wasting and teaches their members about marketing. The enterprise also provides its members with access to much-need credit services. With funding by many different agencies and governments, including the Nigerian Sovereign Wealth Fund and the German government, Babban Gona is able to stay alive and continue to help its current members, as well as take in new ones.

Babban Gona is a revolutionary enterprise that is working hard to reduce unemployment and encourage agriculture in Nigeria. Through services like training, food storage and financial help, the organization is dedicated to helping its members excel. Babban Gona is changing farming in Nigeria by providing its members with invaluable skills that will no doubt benefit them for a lifetime, while also proving that ambitious ideas can become reality with some hard work and the right mindset.

– Paige MusgravePhoto: Pixabay