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6 Ways Access to Clean Water Changes Lives

Access to Clean Water
Around 844 million people in the world do not have access to clean water. The lack of access to clean water affects all aspects of life from drinking to agriculture and hygiene. Furthermore, the lack of clean water perpetuates gender inequality and traps communities in poverty. However, the world has made significant progress. Between 1990 and 2015, the percent of the world’s population with access to clean water rose from 76 percent to 91 percent. That means that millions of people have felt the benefits. Here are six ways that access to clean water changes lives.

6 Ways Clean Water Changes Lives

  1. Improved Sanitation: Around 2.4 billion people worldwide do not have access to toilets or basic sanitation. In Sub-Saharan Africa, just 24 percent of people in rural areas have access to a modern toilet. With no running water, villagers must go out into isolated fields in order to find privacy, leaving women and girls especially at risk of attack. A lack of bathrooms also means that girls often miss school while they are menstruating. When communities gain access to improved sanitation systems, quality of life improves, women and girls are safer and girls are more likely to go to school consistently.
  2. Improved Health: Currently, 80 percent of illnesses in developing nations are related to contaminated water and poor sanitation. This particularly affects children due to their weak immune systems. One-fifth of all deaths which occur under the age of 5 are from water-borne illnesses. When children are sick, they cannot go to school and often another family member has to miss work to take care of them. When people are healthy, children can go to school and adults can have steady employment, leading to continued economic development. The elimination of deaths from water-related illnesses alone would lead to an added $18.5 billion in economic gains for affected countries. Families also save money on health care costs with the elimination of water-borne illnesses.
  3. Increased Gender Equality: Eighty percent of the time, women and girls are responsible for collecting water when it is not available at home. Worldwide, women collectively spend 200 million hours daily collecting water, sometimes walking six kilometers a day. This means they have little time to work, go to school and take care of their families. The long walks also leave women vulnerable to assault and rape. Additionally, the long journey and heavy loads can be dangerous for pregnant women. Access to clean water at home increases the educational and economic opportunities available to women and girls. With increased water access, women could have time to work or even start small businesses. Additionally, girls could go to school, which would have a life-long impact. In fact, for every year a girl spends in school, she increases her anticipated income as an adult by 15 to 20 percent.
  4. Education: Walking to fetch water can take hours every day. Children, particularly girls, are often responsible for doing it. Access to clean water changes lives because when children no longer have to spend most of their day fetching water, they are free to go to school. Drinking dirty water can also cause students to fall behind in their studies as they deal with the symptoms of water-borne illnesses. Education generally becomes a low priority as people struggle to survive. With clean water at home, children can stay in school and build better futures for themselves.
  5. Food Security: Without clean water, it is difficult to grow crops and prepare food. While one might think of water mostly as something to drink, worldwide, people use 70 percent of water resources in agriculture. Eighty-four percent of people who are without modern water systems also live in rural areas, where many rely on subsistence agriculture. Improvements in water management lead to increased agricultural production and allow community members to start small gardens to grow food to eat or sell.
  6. Escaping Poverty: When people no longer have to spend a significant portion of their days fetching water, children have time to go to school and adults can work and learn trades. When people no longer get sick from water-borne illnesses, they can go to school and work uninterrupted. Clean water also allows people to grow more food and practice better sanitation. Access to clean water has a proven position impact on development. The World Health Organization estimates that every dollar that people invest in water and sanitation brings an economic return of between $3 and $34. The U.N. estimated that in sub-Saharan Africa alone, people spend 40 billion hours a year retrieving water. In fact, the world loses $260 billion of potential income each year due to a need to find water.

Many groups succeded in bringing clean water to communities and showing how access to clean water changes lives. For instance, Water.org helped more than 21 million people gain access to clean water through small loans. Millions worldwide spend more than 20 percent of their income on water, as a lack of clean water at home means they must go to a water merchant or pay exorbitant rates to have someone install plumbing. Giving people small loans allows them to quickly pay for plumbing, which eliminates costs in the future.

The Water Project addresses the water crisis by directly donating clean water sources. This organization builds and repairs wells, installs rain catchment tanks and constructs sand dams to improve irrigation. So far, the Water Project has helped close to 500,000 people gain access to clean water for drinking and agriculture.

The World Bank, UNICEF and the World Health Organization determined that providing basic water and sanitation infrastructure to those that need them would cost $28.4 billion a year for 15 years. Right now, the U.S. spends around $600 million on the military each year. A readjustment of federal priorities, taking into account the ripple effects which clean water has on communities, could make a drastic difference for the world’s poor.

– Clarissa Cooney
Photo: Flickr

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Water Access in Angola: The Value of Investment

water access in Angola

Almost half the population in Angola does not have proper access to clean water according to a report by UNICEF.

A country endowed with some of Africa’s most precious natural resources, Angola is frequently victim to external shocks to the market. Oil accounts for roughly one-third of GDP and more than 95 percent of exports. Reliance on a market like oil, which is particularly prone to shocks, means that Angola’s economy is directly affected by external fluctuations. In fact, growth in GDP continues to fall years after a drop in oil prices in 2014. According to the World Bank, annual GDP growth in 2018 was -2.1 percent.

At-Risk Populations

Water access in Angola is an important metric in understanding the distortionary economic effects felt by low-income individuals, women and children. Without clean water and sanitation, too many Angolans are more prone to water-borne diseases like cholera which can kill someone within hours if left untreated.

Outbreaks are more common in rainy seasons when it is easy for the cholera bacteria to survive. Between February and August of 2018, there were 1,046 cases of cholera in Angola, including 21 deaths.

Programs and Initiatives that Increase Water Access in Angola

Luanda, Angola’s capital city, has a population of 7 million, 37 percent of whom rely on connected water service. Private tanker truck services account for 25 percent, public standpipes for 22 percent and illegal water connections or untreated river sources for 16 percent. Increased water access in Angola will contribute directly to labor productivity, economic growth, reduced vulnerability and an overall reduction in poverty.

The valuation of water is incredibly unique—at high quantities, it is an elastic good, but at low quantities it is inelastic. Simply put, it is a basic resource, so when water is unavailable it also becomes invaluable. Investment in water projects can help Angolans reduce time and money spent on acquiring water—especially from tanker truck services which tend to take advantage of the inelasticity of water during a shortage. A number of global organizations are working to increase water access in Angola in order to help provide people with this basic human right.

USAID Development Grants Program

From 2016-2017, the Development Grants Program focused specifically on water and sanitation in Angola. It strived to create affordable water options for consumers, and increase the maintenance of infrastructure. Initiatives such as this help local people reliably manage public resources.

The Institutional and Sustainability Support program began in 2015 to support urban water supply and sanitation services. It proposed infrastructure and development goals with the intention of helping 4.5 million people in seven provinces. This program is ongoing and specifically focuses on those provinces with the highest need for water services: Cabinda, Lunda Norte, Lunda Sul, Kuanza Sul, Bengo, Namib and Cunene.

The World Bank Projects

The most recent World Bank project supports inclusive growth, social protection and water services in Angola. One of its 2019 programs, called the Luanda Bita Water Supply Project, invested $500 million to mobilize government financing for clean water access. Another $500 million was given specifically to protect the poor and vulnerable.

This project comes after a 2017 loan of $200 million to provide 950,000 individuals with piped water services and a 2018 investment of $150 million for the 1.2 million people living in regional cities of Angola.

Women and girls are the focus of many of these investments since reducing their time spent collecting water will allow them to give back to the economy in more productive and impactful ways.

Support from these and other global organizations will help Angola to lower the risk of contracting water-borne illnesses, decrease time spent by women and children collecting water and positively impact the overall economy as a result. A basic resource such as water is often taken for granted by people living in countries with reliable water infrastructure. For those living in Angola who spend a disproportionate amount of time and money on safe water, investments in infrastructure and water supply programs are incredibly impactful. Providing the appropriate resources to aid in water access will help Angolans protect themselves from economic shocks, and give back to the global economy.

– Tera Hofmann
Photo: Wikimedia

The International Development Association and Global Poverty

The International Development Association
The International Development Association (IDA) is one of five institutions that work together to form the World Bank. The IDA’s main goal is to reduce global poverty by working alongside the world’s poorest countries. To accomplish this goal, the IDA issues grants and loans to development programs in impoverished countries. These development programs try to spur economic growth and improve living standards. Currently, the IDA involves itself in a plethora of projects around the world. In the fiscal year 2018, the IDA began 206 new operations.

How the IDA Works

The IDA has managed to raise $369 billion since 1960 to aid underdeveloped regions and it invested all of the money into various development projects. The IDA was able to accomplish this through communication with partner countries and contributions from wealthier nations.

Donor governments meet with receiving countries to discuss funding and a repayment plan and ensure that the development project is feasible and will be successful. The IDA releases reports from these meetings, which publicly allows anyone to learn about the organization’s future projects. The IDA also frequently consults think tanks and civil society organizations to receive feedback on their work. On top of all of this, the IDA reviews a country’s economy and recent history to determine whether it is eligible for a development project. After completing each of these steps, the IDA can determine how to allocate resources appropriately and effectively.

The International Development Association’s Work in Action

The International Development Association continues to change the lives of millions every year. In 2019, farmers in Ethiopia reaped the benefits of the Second Agricultural Growth Project (AGPII). The AGPII aims to improve agricultural efficiency and productivity in Ethiopia by teaching farmers about agriculture, improving irrigation systems and providing fertilizer. The AGPII also helps farmers access new markets which help raise their incomes. Thanks to the AGPII, one farmer increased her potato production by 400 percent and another was successful enough that they could start a family.

Improvements like the ones in Ethiopia are the norm for IDA projects and not rare. For example, in Madagascar, the IDA funded a program titled the productive cash-for-work program (ACTP) in 2015. Since then, many economically vulnerable communities have been able to improve their lives and take advantage of new economic opportunities. The ACTP provides money and training to impoverished people in exchange for work. The program has helped 31,250 households so far and has aided in the creation of small businesses.

IDA funding has had similar effects in other countries. From 2013-2018 new roads in Afghanistan helped create over two million new jobs. In the Gambia, an agricultural project doubled rice yields between 2014 and 2018. Meanwhile, in Kenya, three million people benefited from infrastructure improvements. Overall, between the fiscal year 2011 and 2018, IDA projects led to the building and repairing of more than 140,000 kilometers of roads, the gaining of clean water access for 86 million people and the immunization of 274 million children.

The International Development Association is crucial to global poverty reduction. The IDA has created a system to ensure that the world’s poorest countries receive an appropriate amount of funding and support for future social and economic development. The results speak for themselves as the IDA has changed many people’s lives for the better.

– Nick Umlauf
Photo: Flickr

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Current Developments in the Samoan Fishing Industry

Samoan fishing industry

Samoa is a small island that relies heavily on two main exports, coconut products and fish. Although the Samoan economy grew significantly from diverse agriculture products such as taro, its current focus shifted to fishing industry development. Since the majority of poor Samoans work within the fishing and agriculture industries, improving the fishing industry can help the livelihoods of poor Samoans. The Samoan government and the World Bank are seeing progress in the growing Samoan fishing industry. The poverty rate decreased from 26.9 percent in 2008 to 18.8 percent in 2013, in part due to investment in underappreciated industries, such as the fishing industry.

Current Aquaculture Status

The Strategy for Development of Samoa (SDS) views aquaculture as an important pre-requisite to effective fish farming. Since 2007, Tilapia culture in earthen ponds has been successful but there are several constraints to further development in the Samoan fishing industry. A lack of feeds, technology, skills and limited access to markets impedes faster development. Despite the low technology, aquaculture is viewed as a practical means of increasing fisheries production, providing an additional source of food to those in poverty and generating income to local communities.

Four Initiatives

The Minister of Agriculture and Fisheries, La’aulialemalietoa Leuatea Schmidt, created four main goals in 2017 to boost the fisheries sector. The four initiatives are Samoa’s Tuna Management and Development Plan 2017-2021, the revival of the Fish Aggregating Devices (F.A.Ds) Project, repair work on research vessel F.V. Ulimasao and delivery of 20 tablets to monitor deployed F.A.Ds. The 20 tablets are used to observe and assess the impact of the F.A.Ds on food security and the livelihoods of Samoans.

The F.V. Ulimasou research vessel was repaired through financial assistance from the World Bank. The vessel is used to train fishery personnel and test new technology and fishing gear. About 30 percent of exports derive from the fishing sector and over 90 percent of exported fish is tuna. For this reason, the minister targets the growing industry in order to further develop the economy and the Samoan fishing industry.

Assistance from the World Bank

Thousands of Samoan families and local producers plan to benefit from a $20 million grant from the World Bank. The Samoa Agriculture and Fisheries Productivity and Marketing Project was created in 2019 and will include construction and rehabilitation of infrastructure, such as cold storage at fish markets. Samoa is frequently affected by hurricanes and part of the grant is directed towards constructing disaster-resilient fishery buildings.

The grant will also help grow Samoa’s capacity to export fish and fish products. Hon. Lopao’o Natanielu Mua, Samoa’s Minister for Agriculture and Fisheries said, “We look forward to working with the World Bank to achieve our goal of increased food, improved nutrition and more secure incomes for Samoans.” At least 30 percent of matching grants will go towards female farmers and fishers.

Future Outlooks

The poverty rate has continually declined thanks to efforts by the Samoan government, the Asian Development Bank (ADB), the World Bank and various organizations. The Asian Development Bank supported Samoa since 1966 and committed $190 million in loans, $134 million in grants and $33 million in technical assistance in the small island country. ADB’s future assistance to Samoa will focus on energy investment, disaster-resilient roads, upgraded port facilities and job creation. With continued efforts from external organizations, the livelihood of Samoans will improve.

– Lucas Schmidt
Photo: Flickr

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Abiy Ahmed’s Political Accomplishments

Abiy Ahmed’s Political Accomplishments

On April 2, 2018, Abiy Ahmed became the prime minister of Ethiopia. Ahmed has a history of being in the military, formerly serving as an army intelligence officer.  He also has a bachelor’s degree in computer engineering and a master of arts degree in transformational leadership. Yet, these facts do not even compare to Abiy Ahmed’s political accomplishments thus far.

Abiy Ahmed as Prime Minister

At 42 years old, Ahmed is the youngest African leader to have a leadership position.  In his first 12 months of office, Ahmed has already enacted political reforms that will privatize state-owned sugar plants, railways and industrial parks. He also intends to partially privatize Ethiopian airlines, telecom, electric power corporation and shipping & logistics services enterprises. These four industries are the most crucial for Ethiopia since Ethiopia considers them “the four crown jewels of the economy.” Ahmed’s privatization process has already garnered international support, gaining $1.2 billion dollars for Ethiopia from the World Bank. This is the largest loan a Sub-Saharan country in Africa has ever received. Ahmed is not only implementing reforms that are leading to global outreach, but he is also bringing in more money for Ethiopia’s economy in doing so.

Repression in Ethiopia

Many consider Ethiopia to be one of the most politically repressive countries.  Historically, leaders would lock journalists for doing their jobs or torture inhabitants of detention centers. The political repression has not completely improved, but Ahmed is making sure to take steps in that direction. He has already admitted to the repression that exists and even to the government using torture.  Ahmed is attempting to undo Ethiopia’s brutal history of repression by admitting to it and releasing the prisoners. This will not fix Ethiopia’s problems overnight, but it is a small step that should bring the country to a better place for itself and its citizens.

Despite the fact that Ahmed has committed some very important actions that could ultimately impact Ethiopia’s economy, the results have not always been positive. Communal violence has broken out since Ahmed has been in office, resulting in messy and confusing times for many of Ethiopia’s citizens. Ethiopia has an incredibly big, diverse population, which makes it one of the more difficult ones to govern. Many of its citizens still live in poverty and the literacy rates reach only half the population. While Ahmed’s new policies and reforms will be beneficial, that does not mean they will have overall positive effects. However, there is some hope amidst the chaos. It means that the citizens care and that they are looking for something to believe in. Abiy Ahmed’s political accomplishments could be that hope.

Ethiopia still has a long way to go. Abiy Ahmed’s political accomplishments are already paving the way to Ethiopia gaining a more benign government and country. The small steps he is taking will be significant in enacting big change.

– Haley Saffren
Photo: Flickr

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10 Facts About Life Expectancy in Estonia

Life Expectancy in Estonia
Estonia, a beautiful, Baltic country with a historically turbulent background, is a striking model of a nation that refuses to let adversities stand in the way of its mission for improvement. Despite Estonia’s many challenges over the last two decades, it continues to prove that positive change is possible, no matter how small. These 10 facts about life expectancy in Estonia demonstrate the most notable progress the country has made in pursuit of a longer and higher quality of life for its people. 

10 Facts About Life Expectancy in Estonia

  1. As of 2018, the life expectancy for Estonian women was 82 years, while it was 72.3 years for men, adding roughly three years to the lifespans of both genders since 2008. While these numbers are still slightly below the EU average for 2018 (84 years for women and 79 for men), Estonia has made quite a dent in its life expectancy gap over the last decade.
  2. Preventable diseases largely affect low life expectancy in Estonia. Cardiovascular disease is responsible for killing three in five women and nearly half of all Estonian men. Various types of cancer account for the deaths of 22 percent of women and 27 percent of men, making it the leading cause of death in Estonia.
  3. In the last decade, Estonia’s Parliament introduced initiatives to address the number of deaths resulting from risky behaviors like alcohol abuse, injectable drug use and smoking. Initiatives involved a national Drug Prevention Policy and public awareness campaigns on the harmful effects of alcohol use and smoking. Daily smoking is down to 17.2 percent in 2018 compared to 30 percent in 2001. People who used injectables for at least three years decreased from 21 percent in 2005 to eight percent in 2011. Alcohol abuse is still alarmingly high, though, and accounted for 21.4 percent of all casualties in 2015 despite awareness campaigns and restrictions on alcohol sale and increased excise taxes.
  4. The Estonian Government approved a National Health Plan for 2014 through 2020 to improve the quality and accessibility of health care institutions. To ensure all socioeconomic groups had access to the same quality of care, Estonia opened a national health insurance fund for patient reimbursements, required doctors and pharmacists to prescribe the most affordable medication available and launched an online platform to ensure that the health care system remained as transparent as possible.
  5. Estonia launched an e-prescription service alongside its National Health Plan. By 2011, the medical field issued 84 percent of all prescriptions digitally with a 90 percent satisfaction rate. This digital shift also benefited pharmacies, cutting staff costs related to incorrect prescriptions by 90 percent and putting considerable savings back into the national health fund in order to further improve life expectancy in Estonia.
  6. Around 44,000 people or 3.4 percent of the Estonian population lived in absolute poverty as of 2017. Low income and poorly educated populations in Estonia were 50 percent more likely to develop respiratory diseases and 40 percent more likely to develop hypertension than those operating at the highest levels of income. But, social transfers in the form of benefits and pensions saved 22.8 percent of the population from slipping into poverty in the first place.
  7. Estonian’s who go on to earn a university degree may live 14 years longer than those who only attain lower secondary educations. In 2014, 90 percent of Estonian adults between the ages of 25 and 64 had achieved upper secondary or tertiary forms of education. This number is comparatively much higher than the OECD average of 75 percent.
  8. Economic growth in Estonia is directly related to the country’s astonishing technological advancement since 1991. This advancement has played a major role in creating jobs in Estonia. According to The World Bank, over 14,000 new tech companies registered in Estonia in 2011, a 40 percent increase since 2008. High-tech companies also account for 15 percent of the country’s GDP.
  9. In an effort to combat high unemployment among Estonian youth, the country established ENTRUM (Youth Entrepreneurship Development Programme). The program aims to encourage creativity, problem-solving skills and knowledge of risk management. Between 2010 and 2012, over 1,000 teens participated in the program. Former participants went on to create 59 new businesses, the most successful employing upwards of 60 people.
  10. Estonia boasts a massive network of over 33,000 registered nonprofit organizations acting as service providers for citizens. These organizations employ 28,000 Estonian, making the nonprofit sector responsible for the paid employment of four to five percent of the national workforce. 

Despite its turbulent past, Estonia has proven over the last two decades that it is capable of great improvement. These improvements come in the form of technological advancement, transparent and efficient health care and government initiatives focused on accessing all citizens and ensuring they receive the care they need. 

– Ashlyn Jensen
Photo: Flickr

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Top 10 Facts About Poverty in South America

Top 10 Facts About Poverty in South America
The poverty that affects so much of South America comes from a history of colonialism, which has left the region with extractive institutions including weak states, violence and poor public services. In order to combat these issues, it is vital to understand these top 10 facts about poverty in South America.

Top 10 Facts About Poverty in South America

  1. Dependence Theory: According to the Council of the Americas, the South American economy is suffering from the U.S.-China trade war, a drop in crude oil prices and generally worsening economic conditions throughout the region. This poor economic performance has been present in the region for a long time. NYU Professor Pablo Querubín noted in a lecture that this is largely due to Dependence Theory. This theory argues that poorer countries and regions will have to specialize in raw materials and agriculture due to the comparative advantage other countries and regions have in producing industrialized products such as computers, advanced technology and services. Therefore, because Latin America has a comparative advantage in producing agricultural products and oil, it will have much greater difficulty moving into the industrial sector.
  2. The Reversal of Fortune Theory: The South American economy has also had a difficult time growing because of its history of colonialism and extractive institutions. Professor Pablo Querubín also referenced the Reversal of Fortune Theory which explains how the pre-Columbian region of South America was so much more wealthy than pre-Columbian North America, yet those roles have reversed in the modern era. The reason is that South America put extractive institutions into place to send wealth back to Spain rather than “promote hard work or to incentivize investment, human capital, accumulation, etc.” Yet, in areas with low population levels, such as pre-Columbian North America, settlers had to establish inclusive institutions “designed to promote investment, effort, innovation, etc.”
  3. Political Instability: Political consistency has been rare in the history of South America. New leaders would often change the constitution when they entered office to better suit their political wishes. In fact, while the U.S. has only ever had one constitution with 27 amendments over the course of about 200 years, Ecuador had 11 separate constitutions within the first 70 years of its history. In Bolivia, there were 12 within the first 60 years. This instability and very quick political turnover have been detrimental to the steady growth of the economy and confidence in the government. Understanding the effects of this issue and the other top 10 facts about poverty in South America are integral to fighting poverty in the region.
  4. Inequality: Inequality is incredibly high in South America. As a result, the incredibly wealthy can afford to use private goods in place of public ones. For example, the rich use private schools, private health insurance, private hospitals and even private security forces instead of relying on the police. Therefore, there is very little incentive for the wealthy to advocate for higher taxes to improve public goods such as public education, police or public health initiatives. As a result, the public services available to the poor in Latin America are extremely lacking.
  5. Education: Education in South America is full of inequality both in terms of income and gender. According to the Programme for International Student Assessment, an institution which evaluates teenagers on their educational performance in key subject areas, most countries in South America perform below average. In one evaluation it determined that the highest-scoring country in South America, Chile, was still 10 percent below average. Furthermore, poor educational performance highly correlates with income inequality.
  6. Indigenous Women and Education: In addition, indigenous women are far less likely than any other group to attend school in South America. According to UNESCO, in Guatemala, 70 percent of indigenous women ages 20 to 24 have no education. The issue of unequal education spreads further to affect women’s livelihoods and presence in the South American workforce. According to the International Monetary Fund, about 50 percent of women in Latin America and the Caribbean do not work directly in the labor force. However, the International Monetary Fund also noted that “countries in LAC [Latin America and the Caribbean] have made momentous strides in increasing female LFP [labor force participation], especially in South America.”
  7. Teenage Pregnancy: One major driver of the cycle of poverty in South America is the persistence of teenage pregnancies which lead to impoverished young mothers dropping out of school and passing on a difficult life of poverty to their children. The World Bank reported that Latin America is the second highest region in terms of young women giving birth between the ages of 15 and 19 years old. Furthermore, a study called Adolescent Pregnancy and Opportunities in Latin America and the Caribbean interviewed several South American teen mothers including one who noted that sexual education was not the problem: “We knew everything about contraceptive methods,” she said, “but I was ashamed to go and buy.” Thus, the study advised that in addition to preventative methods for pregnancy such as education and the distribution of contraceptives, there needs to be action to “fight against sexual stereotypes.” Fortunately, there are activist campaigns such as Child Pregnancy is Torture which advocates for raising awareness about the issue of child pregnancy in South America and encourages the government to take steps such as increased sex education, access to contraception and the reduction of the sexualization of girls in the media.
  8. Food Insecurity: Hunger is a growing issue related to poverty in South America. According to the Food and Agricultural Organization of the United Nations, 39.3 million people in South America are undernourished, which represents an increase by 400,000 people since 2016. Food insecurity in the region as increased from 7.6 percent in 2016 to 9.8 percent in 2017. However, the issue is improving with malnutrition in children decreasing to 1.3 percent. Additionally, there are many NGOs such as the Food and Agricultural Organization of the United Nations (FAO), Action Against Hunger and Pan American Health Organization of the World Health Organization (PAHO) that are implementing vital programs throughout the continent to fight hunger.
  9. Migration: The economic instability and rising poverty in South America have caused many people to migrate out of the region. Globally, 38 million people migrated out of their countries last year with 85 percent of that 38 million coming from Latin America and the Caribbean. Dr. Manuel Orozco from the Inter-American Dialogue think tank stated that “The structural determinant is poor economic performance, while demand for labour in the United States and the presence of family there encourages movement.”
  10. Violence: The high level of violence in South America exacerbates the cycle of poverty in South America. Fourteen of the 20 most violent countries in the world are in South America and although the region only contains eight percent of the world’s population, it is where one-third of all murders take place. Dr. Orozco went on to say that “There’s a strong correlation between migration and homicide. With the potential exception of Costa Rica, states are unwilling or unable to protect citizens.”

Fighting poverty in South America is dependent upon an understanding of the history and realities of the region. Hopefully, these top 10 facts about poverty in South America can shed light upon the cycle of poverty in the region and how to best combat it in the future.

– Alina Patrick
Photo: Flickr

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Can the African Union Passport Help Reduce Poverty?

African Union PassportEconomic development does not occur in isolation, and neither does the end of extreme poverty. Instead of working individually, African nations are uniting to find ways to improve Africa’s economy and lower poverty rates. Their latest attempt involves the deployment of the African Union Passport, which allows African citizens to travel freely throughout the continent.

Extreme Poverty Crisis

Africa is the world’s second-fastest-growing economic region. Economic growth usually leads to higher employment levels and overall standards of living. Despite recent improvements in Africa’s economy, extreme poverty levels have not decreased as expected. Instead, they have continued to rise. With an average poverty rate of 41 percent, sub-Saharan Africa is the region suffering the most from extreme poverty. The World Bank Group concluded that most of the global poor reside in sub-Saharan Africa. This region is made up of almost all the African countries except Algeria, Egypt, Libya, Morocco and Tunisia.

Despite a growing economy, many obstacles stand in the way of reducing poverty in Africa, including conflict and war and weak institutions.

Restricted Mobility

Another problem plaguing the African continent is a lack of regional mobility. African residents face stricter restrictions to travel across the continent compared to their European counterparts. In fact, the free movement of people, as well as goods, throughout the African continent, has been virtually nonexistent. For instance, a Nigerian businessman reported that he had to apply for 38 separate visas to conduct intra-regional business.

Regional mobility is a factor that generally drives economic development. The free movement of goods can boost a country’s GDP while the free movement of people can fill gaps in the labor market. Intra-regional movement accounts for a significant portion of Europe’s economy. Around 70 percent of all trade in Europe is intra-regional. In Africa, intra-regional accounts for less than 15 percent. As a result, Africa is missing various opportunities to boost its economy and reduce extreme poverty.

The Africa Visa Openness Index

In 2016, the African Development Bank had the vision to build a global market in Africa. The group believed regional mobility and intra-regional trade created more attractive markets. As a result, the African Development Bank began to track each African country’s visa entry requirements. The group also measured how freely African citizens were able to move through the continent. The Africa Visa Openness Index reports the group’s findings.

The Index ranks each of the 55 African countries in terms of visa openness. The following factors were used to determine the rankings: visa required (low openness ranking); visa on arrival (medium openness ranking) and no visa required (high openness ranking).

The Africa Visa Openness Index has influenced several African nations to make improvements to their trade and visa policies. For example, two years after ranking 28th on the Index in 2016, Benin’s President Patrice Talon announced that the country will no longer require visas for other Africans.

The launch of the African Passport will be the final stage in facilitating the free movement of people and goods across Africa. Africa’s entire population, approximately 1.2 billion people, will have an African Union Passport. This passport will serve as the key to freely move between African nations.

The idea for the African Union Passport is not new. The concept was proposed and approved by all 55 African nations decades ago. However, the dream of regional mobility became a reality after Rwandan President Paul Kagame and Chadian President Idriss Deby unveiled the prototype of the passport in 2016.

By 2020, all Africans will have an African Union Passport. The goal of the passport is to discourage regional isolation by increasing accessibility to intra-regional travel, tourism and trade. By working as a unit, Africa has the chance to boost economic development and end extreme poverty.

– Paola Nuñez
Photo: Wikimedia

Waste Management in Cairo: An Informal Success

Waste Management in CairoCairo, a city of roughly 20 million people, produces more than 15,000 tons of solid waste every day. Even though the government funds some formal sector waste management, much of the time it relies heavily on the local poor. Since it is these neighborhoods that are often deemed “too expensive” for waste collection, the local individuals are burdened with the task of handling the solid waste.

Effective Methods

Zabbaleen, or Garbage People, spend their days sifting, sorting and transporting waste. Despite this arduous and tedious work, the locals have found methods of waste management in Cairo that arguably surpasses formal sector methods. In fact, according to the Environmental Protection Association of Pollution, they recycle about 85 percent of the city’s waste—more than is even seen in North American and European cities.

The economic returns from informal waste management in Cairo are high, and thus it is a sector that requires proper facilitation in order to protect its workers.

Positive Impacts

Many firms purchase recycled materials at a lower rate than virgin resources which gives them a competitive edge. Zabbaleen are self-employed meaning they are lowering the overall unemployment rate in Cairo. In fact, globally, more than 15 million people rely on waste collection for employment. Organic waste diverted from dumpsites helps to feed local animals.

Negative Impacts

Children are kept home from school help with sorting thus they miss out on educational opportunities in exchange for immediate income. In Egypt, the net number of children enrolled in primary school is increasing, but Zabbaleen are among those least likely to attend. Exposure to toxins make Zabbaleen highly susceptible to diseases such as the Hepatitis C Virus (HCV) which can be contracted from improperly disposed medical waste. Zabbaleen do not receive job benefits or protection despite being service providers to the city. The Association for the Protection of the Environment notes that although these workers help sort through 40 percent of the city’s waste, it is at no cost to the city.

Zabbaleen are integral to waste management in Cairo. In regions where formal infrastructure is not effective, these individuals are essential in reducing rates of pollution, providing jobs, and selling goods back to the market at a discounted price. Since Cairo does not directly fund these individuals, they rely on the help of outside organizations and firms to support them.

The World Bank funded a project in 2014 called the Cairo Municipal Solid Waste Management Project to help the country achieve environmental and development goals while recovering from residual economic hardship from the shocks in 2011. Since the population grew at such a rapid pace, the initiative strived to restore macroeconomic stability in order to help reduce extreme rates of poverty in the Delta and Upper-Egypt regions.

Organization to Empower

The Zabbaleen themselves run an organization that supports garbage collectors. The Association for the Protection of the Environment (APE), established in 1984, assists marginalized groups in their journey to reducing waste and raising the living standards of their community. One of their vital projects helps to treat individuals exposed to the Hepatitis C Virus from improperly disposed of medical waste. Egypt experiences some of the highest levels of HCV in the world with approximately 150,000 people infected each year according to the World Bank. About three tonnes of medical waste is generated daily, and much of it is simply disposed with municipal waste—putting Zabbaleen at risk.

Garbage collection in any large metropolitan area is critical to the survival and economic advancement of that city. As a result, it is crucial to include and recognize informal sector participation when creating policies and allocating funding. Locals are the most knowledgeable about their cities, thus governments will benefit from recognizing and heralding this expertise in order to support effective waste management in Cairo. The economic returns of garbage collection are high, so funding and supporting the workers will subsequently help reduce poverty in the region.

– Tera Hofmann
Photo: Wikimedia

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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