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'Developed' and 'Developing'While the categories of ‘developed’ and ‘developing’ to describe countries may have been useful in the 1960s, Bill Gates and Hans Rosling—author of the book “Factfulness”—have begun using a new categorical system; four distinct income levels are now recognized as a more accurate way to describe countries and the range between them.

‘Developed’ and ‘Developing’ Countries

The terms ‘developed’ and ‘developing’ have become almost universal terms to describe the economy or wealth of countries. However, there is not one specific definition for these terms. Organizations such as the United Nations use the terms colloquially. However, they never introduced a specific, measurable definition for what actually classifies whether a country is developed or still developing.

In the 1960s, the terms were mostly based on infant mortality and birth rates. Developed countries had lower mortality and birth rates while developing countries had higher infant mortality and birth rates.

But ‘developed’ and “developing” have become outdated in this way, as just about every country in the world has improved infant mortality rates since the 1960s. In fact, some ‘developing’ countries of today have lower infant mortality rates than ‘developed’ countries in 1960.

Overall, the two terms are incapable of separating countries beyond ‘rich’ and ‘poor.’ This is a problem because the majority of people in most countries live somewhere in the middle. In fact, one can label 85% of countries as ‘developed.’ Meanwhile, 15% are in between and one can consider only 6% as “developing” in terms of fertility and mortality rates. That is why Hans Rosling uses four income levels to describe all countries instead.

The Four Income Levels

  • Level One: The majority of people live in extreme poverty on a daily income of $2 or less per day. Countries such as Lesotho and Madagascar are currently level one countries. For many people in level one, the main mode of transportation is walking. Some may not even have their own pair of shoes to travel in. In these countries, infant mortality, hunger and preventable disease prevalence are high. Approximately 1 billion people live at this level.
  • Level Two: People in countries such as China, Nigeria and Bangladesh generally live on $2 to $8 per day. They may ride a bicycle instead of walking, and they have their own pair of shoes. An estimated 2 billion people live at level two, which is more than any other level.
  • Level Three: In countries such as Egypt, Rwanda and the Philippines, about 2 billion people live on $8 to $32 per day. Transportation may include electric bikes, scooters, public transportation and cars. About 2 billion people live at level three.
  • Level Four: The wealthiest countries make up level four. The average person having an income of more than $32 per day. There is a large market for nice cars and houses. Simple necessities like clean water and nutritional food are widely available. The United States, Mexico, much of Europe and South Africa are some examples of countries at this income level.

This four-tiered system does not completely account for the variations within countries, but it provides more information than the previous terms. For example, some people living in level one countries are significantly richer than the $2 per day average, and many people living in level four countries experience poverty.

However, organizing countries in this way allows for a more accurate measure of progress. Bill Gates has argued that “It’s hard to pick up on progress if you divide the world into rich countries and poor countries. When those are the only two options, you’re more likely to think anyone who doesn’t have a certain quality of life is ‘poor.’” It is important to properly track global progress and development. We can then use the information to understand where further action must be taken.

A New Official Classification

It is difficult to distinguish between various countries with only two terms. The World Economic Forum stopped using the terms ‘developed’ and ‘developing’ in official reports. Instead, it has used a similar four-tiered categorization since 2016. The World Economic Forum states that it will now collect data “for the whole world, for regions, and for income groups – but not for the ‘developing world’ (or the sum of low and middle income).” Similarly, in 2016, the World Bank released a working paper looking into classifying countries by income as well.

According to Bill Gates, “Any categorization that lumps together China and the Democratic Republic of Congo is too broad to be useful.” Using these levels in data analysis creates a better understanding of variations between countries and their incomes.

Sydney Bazilian
Photo: Unsplash

Temporary Basic Income
A recent United Nations Development Programme (UNDP) report advises that temporary basic income in 132 of the world’s low and middle-income countries could curb the spread of the new coronavirus and reduce the pandemic’s massive, adverse effects on global poverty.

Those Hardest Hit: Low and Middle-Income Countries

Co-author of the report, Eduardo Ortiz-Juarez, explained in a blog post that low and middle-income countries are more vulnerable to the economic effects of COVID-19 on the workforce. This is due to a few significant reasons, e.g., 80% of workers in low-income countries work in jobs that cannot adjust to accommodating lockdown procedures. Furthermore, 70% work in the informal sector — only 14% of which have access to employment-based, social protection programs. Compounding these vulnerabilities is the existing high level of poverty in low and middle-income countries. All of these variables considered, low and middle-income countries have taken disproportionate losses in the face of the pandemic and will struggle to rebuild.

Temporary Basic Income: A Solution

The solution that the UNDP proposes — temporary basic income: an unconditional emergency aid that is an “urgent, fair and feasible way of stopping people falling into poverty or further impoverishment as a result of the pandemic.” UNICEF reported that direct cash transfers, how temporary basic income would be delivered, are among the most effective poverty-reduction methods. The basic income recommended by the UNDP would affect nearly 2 billion people around the globe, in 132 countries. Most of these nations are in South Asia, sub-Saharan Africa, East Asia and the Pacific. The basic income would eventually cost between $200 and $465 billion per month, which is equivalent to between 0.27% and 0.64% of the collective GDPs of all countries involved. The World Economic Forum explained that the cost of this temporary basic income could theoretically come from these countries’ suspended debt payments, totaling around $3 trillion this year. This, in turn, could pay for up to 16 months of temporary basic income, depending on the distribution system.

Delivering Temporary Basic Income

The UNDP made three recommendations for the delivery of temporary basic income. Moreover, each recommendation depends on country-specific access to data and resources. Adding on to vulnerable individuals’ existing incomes to make sure they exceed a minimum of 70% above the poverty line in their respective country. “Lump-sum transfers” are given to vulnerable individuals totaling half of the average income in the respective country. Uniform “Lump-sum transfers” given to vulnerable individuals in all 132 affected countries that meet a minimum of exceeding the “typical level of the poverty line among upper-middle-income countries.”

Slowing the Spread of COVID-19

Temporary basic income could solve multiple problems at once, but most importantly, it would slow the spread of the new coronavirus by allowing workers the financial flexibility to stay home. While this income program cannot retroactively reverse existing pandemic economic damage — it would slow the rapid increase in global poverty. Increasing income could also affect a wide range of existing issues, worsened by the pandemic. E.g., spending on education, community health and gender inequalities that affect working women.

Model Programs Currently in Practice

UNICEF reported that Spain’s government rolled out a “Basic Income scheme” in June, reaching about 2.5 million vulnerable people. At the time, the country faced a projected 13% decline in GDP due to the pandemic. The basic income program will remain in place in Spain after the pandemic slows as a permanent social protection program. A similar program has also rolled out, in Tuvalu. However, the scope of the UNDP proposed program, would be much larger and thus, more far-reaching.

Emily Rahhal
Photo: Unsplash

Tourism's Impact on Reducing Poverty
Within the past decade, international travel to developing countries has risen substantially. Countries like Tanzania and Indonesia have benefited from a surge in tourism. Moreover, research postulates that this will improve economic growth in developing countries. Economic developments in these countries are essential for stable socioeconomic growth. Tourism’s impact on reducing poverty within developing nations will be addressed in this article. However, the tourism industries in these countries promote more than just income generation — also, stability, opportunities in local communities, employment and cultural prosperity.

Advantages

In 46 of the 49 least developed nations (nearly 94%), tourism has become one of the primary sources of economic income. Moreover, in some countries, this results in 25% of GDP. The total contribution of tourism in 2019 generated roughly $9.2 billion, with direct contributions globally generating nearly $2.8 billion. The income generated in these countries can provide further support to local communities and the overall infrastructure and revenue of developing countries.

The tourism industry offers excellent advantages for socioeconomic growth and poverty alleviation. One of the most significant factors is employment. Many individuals living in developing countries lack the education and opportunity for high-paying, skilled jobs. Jobs within the tourism industry, such as food, conservation and hospitality require lower skill levels. Therefore, allowing for expanded employment opportunities. In these ways, tourism’s impact on reducing poverty is both positive and significant.

Disadvantages

The tourism industry can certainly promote nations, effectively raising their global profile and allowing for even more tourism. However, it can also allow for environmental damage, such as pollution, littering, resource depletion or loss of natural habitats due to the massive increase in visitors. In this same vein, roughly 40 million Americans traveled internationally in 2019. Yet, alternatively, it should be noted that tourism can potentially provide funding for conservation and create incentives to preserve natural areas. This occurs in both urban and rural environments to regenerate the areas.

Infrastructure such as roads, airports, hotels and other tourism services may fail to keep up with the estimated tourist projections of an “additional 400 million arrivals forecasted in 2030.” Infrastructure’s crucial role in tourism is in the amenities that these countries can provide for visitors. Although, with tourist arrivals already surpassing projections by 2017, some countries may struggle to progress and uphold their “infrastructure readiness” quickly enough.

Tanzania and Indonesia: Success Stories

Tanzania, located in sub-Saharan Africa, has become a significant tourist attraction within the past couple of years. Due to its rich culture and conservation, Tanzania has become a highly desirable destination. The nation accounted for 1.28 million tourist arrivals in 2016 alone. With this rise, Tanzania’s GDP of 4.7% is directly linked to tourism and travel expenditures. Furthermore, the country increased investments by 8.7% ($1.2 billion) and “export earnings,” generating $2.5 billion in revenue. These earnings dramatically impacted job opportunities, a significant variable in alleviating poverty. E.g., the increased investments employed 470,500 persons in the tourism and travel industry in 2016. Recent reports from the World Travel and Tourism Council (WTTC) expect the tourism and travel sector to continue to rise “6.6% annually in the next 10 years.”

Indonesia has also created a profitable tourism and travel industry. Striving to improve income inequality and alleviate poverty through tourism has proven to be a successful initiative. A study conducted by LPEM FEB UI, Universita Indonesia, shows that tourism activities have reduced the “depth of poverty from 2.04 to 1.21.” Along with this, severe poverty lessened in 2016 from 0.37 to 0.29. Additionally, the study also reveals that tourist activities offer more significant support within communities. For those living in regions with more prevalent tourist activity — the poverty rate is 1.5%–3.4% lower than regions that are not.

Continuing the Positive Impact

While the advantages do not necessarily outweigh the disadvantages — there are significant, positive results in promoting the travel and tourism industry in the highlighted regions above. With continued progress, countries such as Tanzania and Indonesia have made increasing strides in alleviating poverty. Tourism’s impact on reducing poverty represents a significant feat that will hopefully continue to yield positive results for the world.

– Allison Lloyd
Photo: Flickr

5G Internet Could Reduce Poverty
With the “fourth industrial revolution” underway as technology rapidly advances and changes the global outlook, fifth-generation (5G) internet has proved to be a breakthrough that could potentially pull millions out of poverty. One can characterize 5G internet by its high speed, high capacity and low latency with a bandwidth almost 10 times more than fourth-generation (4G) internet. Peak download speeds for 5G internet are around 20 gigabits per second, allowing users to download full movies, videos, advanced Internet of Things (IoT) software or artificial intelligence (AI) in minutes. 5G internet could reduce poverty significantly if countries implement the correct infrastructure for it.

Many countries have already begun building 5G networks. According to a report by Cisco, at the end of 2019, 26 countries were commercially selling 5G programs, 14 of which were developing countries. Countries with high rates of poverty could especially benefit from 5G internet as it would provide a stable internet connection and allow them to access a wealth of online resources. Below are seven ways 5G internet could reduce poverty.

7 Ways 5G Internet Could Reduce Poverty

  1. 5G internet could further advance the Sustainable Development Goals set for completion by 2030, especially surrounding “inclusive and equitable” education for all. The communities that live in rural locations most commonly face difficulties accessing educational resources. According to the World Economic Forum, construction of a school would have to happen every hour for 11 years in order to ensure enough schools for all of the children living in sub-Saharan Africa. 5G internet could connect those in unreachable locations to online teaching resources and remote learning opportunities. The speed of 5G internet could allow students to tune in live to classrooms globally.
  2. Healthcare, which has lagged far behind in many developing countries, could see massive reforms as part of 5G internet access. New AI and IoT devices could revolutionize the industry. New surgeons in training can wear haptic gloves that track hand movement to send to professionals across the globe so they can correct and mentor them. Virtual reality and 3D imaging allow medical professionals to aid in surgeries in rural areas. AI could even enable remote surgeries or checkups.
  3. Compared to 4G networks, 5G can reduce energy consumption by 50% to 95%, said the European Investment Bank. Energy poverty is already a prevalent issue, which is a lack of access to energy as a result of its high cost. Reducing energy usage further would allow 5G to be more affordable and sustainable.
  4. The internet has already allowed massive globalization to take place which has expanded global output by millions of dollars. 5G will continue this revolution – by 2035, IHS economics and technology has determined that 5G internet will enable $12.3 trillion in global economic output. In addition, it should allow the creation of 22 million jobs, meaning a vast new market could open up for employment in all countries.
  5. With new AI and IoT devices monitoring factors, such as rainfall, water content, nutrients in the soil, ground temperature and more, 5G internet should encourage the rise of “smart” agriculture. This technological push to increase farmer efficiency has already begun but faster data speeds and larger bandwidth that allow the installation of more sensors and larger-scale technology should accelerate it. Intel estimates that the global smart agriculture market will rise to $23.44 billion by 2025 and that 55% of data on farms will come from IoT devices. Impoverished countries could especially benefit from these advancements as they will allow higher crop yields, saving money and feeding a larger portion of people.
  6. People could use unmanned aerial vehicles (such as drones) in combination with 5G internet to supply a larger area. Especially in rural areas where built-in infrastructure would not provide for all of the people who need it, traveling drones could circulate 5G networks to all that need it. A farmer who is trying to use a cellular device on a large plot of land could have a personal unmanned aerial vehicle that would travel with them as they inspect the whole field, ensuring that their 5G network never experiences an interruption.
  7. Emerging countries are especially willing to build 5G infrastructure as it is more affordable than previous internet structures and proves to have a large payoff. The implementation of 4G networks is often more expensive with less energy efficiency, sustainability and economic increase, causing developing countries to jump straight into adding 5G infrastructure. India, Turkey, Brazil, Saudi Arabia, Mexico, Russia, Qatar, Oman and Uruguay have been some of the first countries to modify their industrial transformation programs. In addition, due to the fact that many western developed countries have banned or restricted 5G data networks until recently, major 5G players such as China have increasingly marketed to developing nations.

Currently, 5G internet is accessible mostly in urban areas due to population density, but rural areas will not lag far behind if areas put the right infrastructure in place. South African cities and Cape Town were the first in Africa to see 5G due to the growth of Rain, a South African company. These seven facts about how 5G internet could reduce poverty show that it holds a bright future for many of the developing countries and will be a key player in the coming years.

Nitya Marimuthu
Photo: Flickr

World Problems To Write About
Across the world, many disasters have left poor legacies for many to deal with. Currently, organizations such as UNICEF and the United Nations Foundation are making efforts to eliminate global problems like climate change and global poverty. With this being said, many individuals are not aware of the full extent of these issues. It is time for journalists and writers to focus on today’s most prevalent issues to educate the public to take action. Here are five world problems to write about.

5 World Problems to Write About

  1. Climate Crisis: Right now, many news publications have been reporting on one of today’s most known issues: climate change. Affecting millions of individuals around the world,  the current climate crisis is a problem that many activists and scientists are trying to solve. Some people like Greta Thunberg have made it their mission to educate the public on what is going on and how to involve themselves. First, it is important to write about this issue because it has drastic consequences on human lives. For example, studies show that climate change will displace about 200 million people by 2050, leaving them with no home. Second, climate change also has repercussions on the planet itself. Sea levels have risen approximately eight inches in the past century, and the Earth’s surface temperature has risen almost 1.62 degrees Fahrenheit as well.
  2. Food Security: Quite a lot of today’s agriculture relies heavily on quick and easy access to water; however, access to natural resources such as water has grown limited due to its exploitation for other purposes. The lack of food security has contributed to the sharp increases in world hunger as people are not meeting their dietary needs. According to the United Nations, approximately 925 million people around the world go hungry either because they cannot afford food or because it is just too scarce. People need education about food security from the news, as many personal choices, such as wasting food, contribute to the problem.
  3. Lack of Education: Another important issue to write about is the lack of education that is so persistent in many low-income areas. Currently, more than 759 million adults are illiterate and do not properly understand the consequences of lacking education. Not only does it limit the number of job opportunities available in the future, but it also has drastic effects on future generations. Many organizations such as the Association for Childhood Education International have identified the source of the issue and are determined to alienate it in the coming years. By empowering children and adults to pursue an education, it hopes to shed light on its importance and help individuals grow.
  4. Gender Inequality: As the world progresses, it is important for society to acknowledge the age-old issue of gender inequality. Consequences such as wage discrepancies and stereotypical gender roles have limited many women across the world from achieving their full potential. According to the World Economic Forum, it will take almost 108 years to fully solve this issue; however, it is important that people write about gender inequality more often and educate the public to speed up that time. By understanding the full scope of the problem, men and women everywhere will have the empowerment to take action and fight for equality.
  5. Global Poverty: Finally, one of the largest world problems around the world is global poverty, affecting almost half of the world’s population. Global poverty, in general, has economic and social consequences. Not only can it be very dangerous for one’s health, but it also has dire effects on the environment and physical landscape. To add, poverty can negatively affect economic growth by limiting the amount of money available to invest and increasing crime rates. The Borgen Project has been a key player in writing on this issue, raising money and spreading awareness globally. It has also been very active in legislature, advocating for certain bills to alleviate global poverty. Writing on this issue can increase its urgency and push for more individuals to involve themselves.

It is important for writers and journalists across the world to report on these world problems that are most prevalent in today’s society. The world problems to write about above are some of the most urgent problems to address, affecting many politically, economically and socially. By reporting on these topics more frequently, people have the education and empowerment to take action. After all, action can only happen after awareness.

– Srihita Adabala
Photo: Flickr

The World Economic Forum and Global Poverty
In the realm of international relations, there are countless organizations that have complex acronyms and unclear operations. The biggest and best-known organizations are the International Monetary Fund (IMF), World Bank, World Trade Organization (WTO) and Organization for Economic Cooperation and Development (OECD) which often obfuscate lesser-known organizations, such as the World Economic Forum. The World Economic Forum and global poverty link which this article will explore while addressing the organization’s purpose.

What is The World Economic Forum?

The World Economic Forum is an international organization that emerged in 1971, congregating leaders in politics, business, culture and society to address issues and facilitate solutions on a global, regional and industrial scale. The pinnacle of the organization occurs every January in the form of an annual meeting in Davos, Switzerland at the organization’s headquarters. Global elites gather at the Swiss ski resort and discuss all manner of topics, ranging from the latest in technology and innovation to critical issues like rising global income inequality and global poverty generally.

Despite its standing as an independent nonprofit, people often confuse or associate the World Economic Forum with the United Nations, partially due to its focus on the U.N.’s Sustainable Development Goals (SDGs). These ambitious objectives range from broad, borderline idealistic ones such as No Poverty and End Hunger to Industry, Innovation and Infrastructure and Reduced Inequalities.

What Does The World Economic Forum Do?

In places like the World Economic Forum, world leaders and officials access the progress of the SDGs and evaluate what their statuses are and what they need for the future. For instance, a September 2018 article emphasized the success of the World Economic Forum’s initiative in reducing poverty, reducing the total amount of people living on less than $1.90 a day to 655 million people, or about 9 percent of the world’s population. The article cautions against too much hope, however, forecasting that the goal of ending poverty by 2030 will fall 480 million people short, or about 6 percent of the population. These figures come from a World Bank report portioning some of the blame on many countries failing to meet a U.N. target of 0.7 percent of economic output on aid, a sentiment that the London-based Overseas Development Institute supports.

How does the World Economic Forum intend to combat this shortcoming? In an October 2019 announcement, the forum proclaimed a theme for the January 21-24, 2020 meeting: Stakeholders in a Cohesive and Sustainable World. Reinforcing its commitment to the SDGs and the Paris agreement of 2015, participants will solidify a meaning to ‘stakeholder capitalism,’ a principle that companies should meet the needs and requirements of all of its stakeholders, including the general public. The World Economic Forum will emphasize six areas including Ecology, Economy, Technology, Society, Geopolitics and Industry, in an application of this philosophy. All of this will align with the forthcoming Davos Manifesto 2020, mirroring the Davos Manifesto of 1973, which founder and Chairman Klaus Schwab believes will “reimagine the purpose and scorecards for governments and businesses.”

Conclusion

Some criticize the World Economic Forum for being an aloof, exclusive assortment of billionaires and powerful people, exactly the kind of people global inequality directly benefited. Participants at Davos do seem to be aware of this, identifying rising inequality, protectionism and nationalism as byproducts of the globalization that they supported. Klaus Schwab, The World Economic Forum’s founder, realizes that globalization created many winners, himself included, but that the losers now need recognition and assistance. It can be difficult to attribute any direct action to the World Economic Forum, as its participants act mostly independently of it, though informed by discussions and insights gained at it. However, given the overall rhetoric and specific support of the Paris Agreement and Sustainable Development Goals, the World Economic Forum and global poverty clearly intertwine as the organization positions itself as a beneficial actor for the entire globe.

– Alex Meyers
Photo: Flickr

What is Davos
For the last 50 years, world leaders have been flying across the world to take part in the World Economic Forum’s (WEF) facilitated conversations that might leave people wondering what is Davos, exactly? The small Swiss town, Davos, is home to the annual meeting held by WEF where invited elite address global issues and how to solve them.

In 2019, there were 3,000 people that joined together in the Swiss Alps to propose new initiatives for various issues, including how to help those in developing countries. The organization has been present in the creation of successful initiatives to provide vaccines and water to those in poverty as well as in the development of a project to prevent sickle cell disease in Ghana.

Gavi the Vaccine Alliance

Nearly two decades ago, Gavi the Vaccine Alliance launched at Davos, an organization that aims to provide vaccines and immunizations to children living in poverty. The Bill and Melinda Gates Foundation provided $750 million to get the organization running.

The World Health Organization (WHO) also founded Gavi and began partnering with the United Nations Children’s Fund (UNICEF) in 2008. UNICEF distributes vaccines and immunizations on behalf of Gavi, having spent $1 billion in 2014. In 2018, UNICEF distributed products to nearly 70 countries for Gavi, and plans on doing the same in 2019, according to its shipment plans.

Gavi’s goal is to immunize 300 million children between 2016 and 2020, already having provided 700 million children with immunizations. When people living in poverty receive vaccines to common diseases, it removes a financial burden and could eventually allow them to alleviate their poverty, according to a Harvard Health Policy Review article.

Water.org’s Clean Water Initiative

At the 2017 Davos meeting, Matt Damon and Gary White, founders of Water.org, announced the organization’s partnership with Stella Artois in providing water to 3.5 million people. According to WHO, 2.1 billion people lack access to clean, safe water in their home which can lead to the spread of diseases and death. To combat this phenomenon, Water.org is selling Stella Artois chalices and using a portion of the profits for WaterCredit, a system that allows local communities to take out loans to improve their water situation. This can mean different solutions for different communities allowing them a choice that best serves their needs, according to NPR. This partnership is just one of the initiatives in place by Water.org; Water.org and Stella Artois have been working together since 2015 and have helped over 1.7 million people gain access to clean water.

Sickle Cell Screening in Ghana

At the 2019 Davos meeting, the government of Ghana signed a five-year Memorandum of Understanding (MOU) with Novartis, a Swiss pharmaceutical company, to treat sickle cell disease within the country. Two percent of Ghanian newborns are born with sickle cell disease, according to a 2005 study of over 200,000 newborns. Director of Ghana Health Service, Dr. Anthony Nsiah-Asare, stated at Davos that he hopes that the MOU will allow for the placement of treatment centers in all regional hospitals and the screening of every newborn while also collecting and analyzing data on the disease.

As of March 2019, 5,600 doses of Hydroxyurea, a daily drug treatment for the disease, went to Ghana for sale at a reduced price, according to Ghana Business News. By September 2019, 40,000 more doses should enter the country.

In answering the question, “what is Davos?”, it is a small city where big leaders have been working towards making changes for more than 20 years, like the alleviation of poverty through acts such as providing vaccines, clean water services and disease screenings to countries in need. At varying levels of success, these initiatives have reached millions of people suffering from poverty and seem to be maintaining momentum.

– Makenna Hall
Photo: Flickr