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Hurdling Over Causes of Poverty in Palau

Hurdling Over Causes of Poverty in PalauPalau is an island country located in the west Pacific Ocean. The country has attempted to circumvent the common causes of poverty in Palau by bringing the United States on board with its economic policies.

History
In the immediate aftermath of World War II, the United Nations assigned the U.S. the task of administering authority in a few Pacific islands, including Palau. The U.S. helped Palau by building roads, hospitals and schools and eventually extending eligibility for U.S. federal programs. Palau flourished and obtained independence in 1994. As a sovereign nation, Palau makes its own decisions about its economy.

A Helping Hand
As of 2008, the U.S. hoped to influence Palau’s economy for the better, keeping economic-related causes of poverty in Palau at bay. The U.S. continued to give millions to Palau’s economy, especially through federal programs. The U.S. also made sure to assist private sector growth in Palau. The U.S. economic support in Palau is essential to ensure Palau’s financial system, labor and commercial sectors are thriving. If these vital sectors collapsed, the general population would face poverty because the country would experience a great drain of economic power.

Between 1995 and 2009, the U.S. gave approximately $852 million to Palau to help the island become a self-sufficient economy.

Does the Aid Help?
While Palau businesses’ financial coffers are seemingly robust due to U.S. aid, there are disproportionate sectors of the population that continue to face common causes of poverty. For example, since Palau is an island, some of its population earns a living through fishing.

Fishing is an accessible way to earn a living to keep poverty at bay. However, almost a third of the fish stocks in the world are overfished or overused. Trade barriers also prevent local fishermen and producers from meeting the high standards that international markets demand. Overfishing causes damage to nature and to the cycle of life. In turn, fishermen may be damaging their financial futures.

Fortunately, Palau noted that fishing would help erode poverty in its more remote areas. The government of Palau started a shark sanctuary. The idea behind the sanctuary was to encourage conversation about conservation and to draw a higher number of tourists to boost the local economy.

Tourism is a leading economic contributor to revenue in Palau. There was a dramatic increase in visitors from relatively nearby China. In 2016, Palau hosted over 138,000 tourists—not only from China, but around the world. Now, Palau plans on preserving its natural beauty, including its fisheries, to continue to benefit from this revenue.

By having the U.S. support its economic endeavors and establishing its own industries, Palau is ensuring that it has a sound plan to effectively combat any remaining causes of poverty in Palau.

– Smriti Krishnan

Photo: Flickr

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The Poverty Rate in Tonga: A Nation in Need of Assistance

Tonga Poverty RateThe Polynesian Kingdom of Tonga is home to around 102,000 people. Tonga is an archipelago comprised of 171 islands, only 45 of which are inhabited. In 2005, the U.N. estimated 77 percent of the population lives in rural areas.

The poverty rate in Tonga is 22.1 percent; in other words, one out of every five Tongans lives below the poverty line. Among the eight nations in the Pacific region, Tonga has the third lowest poverty rate, proceeded by the Solomon Islands and Vanuatu.

Tonga’s impoverished communities are primarily in rural areas on the outer islands. The main island of Tongatapu has the highest GDP per capita, but the citizens of the farther islands of ‘Eau, Ha’apai, the Niuas and Vava’u struggle to find work. The higher poverty rates on these islands are due to a lack of access to goods, transportation and marketing opportunities.

The poverty rate in Tonga worsened after the 2008 global financial crisis. The cost of living skyrocketed due to increased prices of imported fuel and food. The crisis also caused Tongans overseas to lose their jobs in fields such as construction and landscaping, rendering them unable to send money back home. It is estimated that there are more Tongalese expatriates than current citizens, and many of them reside in the neighboring countries of Australia and New Zealand.

Tonga’s economy is primarily agricultural. Their main cash crops are squash, fish, copra and coconut products, vanilla bean extract and bananas. Tonga’s main mode of foreign exchange is through agricultural exports, tourism and remittances. The Tongalese economy also relies on foreign aid to offset its chronic trade deficit.

The biggest hope for improving the Tongan economy is tourism. Tonga hopes to increase high-value tourism among the outer islands, which have white sandy beaches and ideal sailing conditions. The Tongan tourism industry still has problems with remoteness, infrastructure and poor marketing. However, conditions are improving. In January 2011, tourist receipts totaled 60 million Tongan dollars, the highest point in the last decade.

Like many countries, Tonga is still in the process of rebuilding its economy after the 2008 financial shock. International cooperation will also be instrumental in doing so, as Tonga continues to rely on foreign aid for emergency assistance and filling the gaps in trade deficits. With further cooperation and the development of local markets, there is hope to lift many more Tongans out of poverty.

– Hannah Seitz

Photo: Flickr

Reducing the Poverty Rate in the Solomon Islands

Poverty Rate in the Solomon IslandsIn 1568, Spanish explorer Álvaro de Mendaña became the first European to visit the 992-island archipelago known today as the Solomon Islands. He named the islands after the wealthy and wise biblical king of Israel, inspired, as legend goes, by a belief that their cerulean seas and white-sand shores guarded untold riches. That assumption was largely mistaken, as seen in the poverty rate in the Solomon Islands today.

 

Exploring the Poverty Rate in the Solomon Islands

 

Although modern tourism has added to the Islands’ economic portfolio, these profits are still few and far between and unevenly distributed. The vast majority of wealth is concentrated in the capital city, Honiara, in which 85 percent of the population is in the Islands’ highest wealth quintile.

According to the Asian Development Bank, in 2013, 12.7 percent of Solomon Islanders lived below the national poverty line. Nutrition-wise, they fared better: only 4.4 percent lived below the food poverty line. However, a mere 35.1 percent had access to electricity.

Technological developments and investment continue to play a vital role in reducing poverty in the Solomon Islands. In April 2017, the World Bank reported that the Green Climate Fund has approved $86 million toward the Tina River Hydropower Project, an effort to reduce reliance on imported fuel for electricity generation. This investment accompanies the $15 million provided by the International Renewable Energy Agency/Abu Dhabi Fund for Development (IRENA/ADFD).

The Solomon Islands’ electricity retail tariffs are currently among the highest in the world, at $0.65 per kilowatt-hour. Given that the Islands generate 97 percent of their electricity from diesel fuel and only 12 percent of homes are currently connected to grid power, this project stands to reduce the burden on working families and illuminate the islands like never before.

And, with electricity, the Islands should see an economic boost. The Asian Development Bank notes that tourism is a largely untapped market with great potential for development. Cheaper and more abundant energy is good for more than just powering residential areas: it can also lay groundwork for the sort of 24-hour “City of Light” that modern tourism creates and feeds on. With a stronger, cheaper energy grid in place, private investment will follow.

New technology and investments like these, guided by sound and prescient public policy, will be crucial to reducing the poverty rate in the Solomon Islands and materializing those mythical riches dreamed of since the days of de Mendaña.

– Chuck Hasenauer

Photo: Flickr

Alleviation of Global Poverty a Benefit of Tourism

Alleviation of Global Poverty
After the United Nations declared 2017 the International Year of Sustainable Tourism for Development, governments worldwide have been growing their tourism industries to facilitate the alleviation of global poverty.

Year after year, the United Nations has seen an increase in money circulating in various countries’ tourism industries. However, these countries are some of the wealthiest in the world, among them the United Kingdom, United States and Germany.

The United Nations is working to increase the benefits of tourism in countries struggling with immense poverty, but it will not be easy. To accommodate tourists, a large amount of money—money that these countries do not have—will need to be spent on building and maintaining hotels, airports and other tourist amenities.

If these countries are able to build successful tourism industries, an abundance of jobs will be created and a large percentage of the profits can go directly to local communities living in poverty.

Samoa is an example of this progress. From 2005 to 2015, Samoa’s tourism industry grew from $73 million to $141 million. Samoa’s tourism industry had an impact on the alleviation of global poverty, as it ensured that visitor dollars resulted in local benefits.

Similar to Samoa, Ecuador, South Africa and Fiji are among other countries that have seen poverty relief as a benefit of expanding their tourism industries. The United Nations has played a role in the alleviation of global poverty by helping poor countries finance transport connectivity and facilitate infrastructure investment.

African countries have benefited greatly from the United Nations’ assistance with their tourism industries. Today, Africa’s tourism industries support more than 21 million jobs and have aided the alleviation of global poverty through sustainable development in struggling countries. The sustainable development seen in Africa relies on tourists making ethical travel choices. Tourists are encouraged to “go local” with food, craft purchases and tour companies when traveling in developing countries.

Tourism alone cannot end global poverty. However, if travelers, local companies and large organizations such as the United Nations continue to show their support for developing countries, the world will be one step closer to total alleviation of global poverty.

– Kassidy Tarala

Photo: Flickr

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The Positive Perspective on Tourism in Developing Countries

Tourism in Developing CountriesOver the years, there has been a longstanding debate about whether or not the unintended consequences of tourism in developing countries could be detrimental to locals in a developing community. On the other side of the argument, some tourists argue that tourism contributes to a flourishing economy and increases diversity.

One important aspect that contributes to a more positive outlook on tourism is the attitude of both tourists and locals regarding foreign travel. Leaders of countries with successful tourism industries tend to emphasize certain ground rules to encourage the community to view the tourists as a source of wealth creation, not of charity. This attitude contributes to a more healthy relationship between tourists and locals and fosters more respectful interactions instead of a transactional relationship.

In Rwanda, the majority of the country’s revenue comes from wealthy safari tours and other tourism cooperatives. The natives have welcomed tourism as a large contributor to their economy and a necessary part of life.

The life of Mukasinadere, a member of a weaving cooperative in Rwanda, has been completely changed by the tours. Working as a weaver and selling baskets to tourists, she is now able to pay for her family’s basic needs. As a result of these cooperatives, the economy in Rwanda is flourishing, food is abundant and mortality rates have decreased substantially.

Aside from financial improvements, tourism also has positive effects on infrastructure development. Tourism encourages local customs, artwork and festivals which contribute to a better cultural understanding for both tourists and locals.

Facilities in areas with high tourist traffic are often much more high-quality, not to mention more sanitary, than local facilities which increases the quality of life and health for locals. Environmental tourism encourages wildlife and nature preservation in addition to providing funding for these causes that might not have received allocations otherwise.

While tourism in developing countries is a controversial and often stigmatized topic of discussion, it is important to remember the positives that tourism affords for the local community and aspects of cultural acceptance.

– Sarah Coiro

Photo: Pixabay

Andorra: Europe’s Tax Haven and Tourism Getaway

AndorraSituated in the mountains between Spain and France, it’s easy to forget about Andorra, one of the smallest states in Europe. Because of its duty-free shopping, winter sports and hot summers, it is a popular destination for the eight million tourists that visit annually. Travelers enter the country from either France or Spain, since it has no airport. The following facts and figures in Andorra paint a picture of prosperity and ongoing challenges.

  1. Andorra doesn’t get much press. This may be due to the small population (less than 100,000), and the actual area of the country is only about two-and-a-half times the size of Washington, D.C.
  2. Most of the country’s GDP comes from tourism and investments. The majority of employed individuals work in a service-industry position. The population enjoys a high standard of living. In 2016, unemployment was 3.7 percent. Poverty statistics are currently unavailable.
  3. Andorra has six major political parties. Additionally, there are several smaller parties at the parish level.
  4. Despite being so small, It also has a higher per-capita income than both Spain and France. It was a tax haven until France and Spain opened its borders. Andorra has no external debt.
  5. Andorra imports all of its food. Only 5.5 percent of its land is arable.
  6. Andorra is not without problems. One concern is affordable housing. While most of the housing in the country is new, it is also scarce. A look at lucasfox.com shows properties selling from 200,000 Euros ($228,000 USD) to well over a million Euros ($1,141,000 USD). Amendments to residency requirements have recently been made in order to open the market. It used to be a person buying property in Andorra had to have lived there for at least 20 years. Locals continue to live with their families in farmhouses.
  7. Environmental concerns included solid waste disposal, deforestation and overgrazing.
  8. In terms of health, nearly a third of the population is obese. According to 2014 statistics, 8.1 percent of its GDP (an estimated $3.327 billion as of 2015) was spent on health. Life expectancy is 82.8 years.
  9. Andorra is looking to attract foreign investing. Before 2008, non-residents could own 33 percent of a company. After living in the country 20 years, they could then own 100 percent of a company. This was due to concerns about foreign ownership on the economy.

As these facts and figures in Andorra show, it is a peaceful, small country as a retirement haven, or for those looking for an out-of-the-way skiing vacation.

– Gloria Diaz

Photo: Pixabay

Reducing the Poverty Rate in Jamaica: Obstacles and Successes

Poverty Rate in Jamaica
The poverty rate in Jamaica is decreasing due to economic growth. The government wants this trend to continue. It is stated in the December 2016 National Poverty Eradication Programme (NPEP) that its vision for every Jamaican is to consume goods and services above minimum acceptable national standards. The government envisions a state where everyone has equal opportunities and support to achieve and maintain income security and improved quality of life.

As with any dream, there are several obstacles to attaining this vision. There are also successes that signal the vision is possible. Here are eight facts about efforts to further reduce the poverty rate in Jamaica.

  1. According to the government’s NPEP, in 2012, 19.9% of the population was living at or below the poverty line.
  2. Unemployment rates have fallen in the country. According to the Statistical Institute of Jamaica, the unemployment rate in Jamaica in January 2017 was 12.7%, compared to 13.3% in January 2016.
  3. While unemployment rates have gone down for the population as a whole, unemployment rates remain high for youth. According to the World Bank, the unemployment rate for youth is 28.6%. This is leading to high levels of crime and violence.
  4. According to the World Bank, Jamaica is considered to be an upper-middle-income country. The United Nations Development Programme states that Jamaica received this classification in 2010 due to being on track to eradicating extreme hunger and ensuring environmental sustainability.
  5. Even though Jamaica is viewed as an upper-middle-income country, it faces many obstacles in economic growth. The World Factbook reports that Jamaica’s economy has grown on average less than one percent per year for the last three decades. Economic growth has been slow due to a high debt-to-GDP ratio and high rates of crime and corruption.
  6. Focus Economics highlights that tourism is helping the Jamaican economy. The island welcomed its one-millionth tourist in mid-June 2017, two weeks before receiving a private investment of $1 billion for a chain of hotels and resorts.
  7. According to the World Factbook, Jamaica has made progress in reducing its high debt-to-GDP ratio. In 2012 it was at 150%. It is now at 115%. Collaboration with the International Monetary Fund made this achievement possible.
  8. Poverty programs are being instituted in Jamaica. Most of these are state-led. In its NPEP, Jamaica outlines its goals for eradicating poverty. Its first goal is to eliminate extreme food poverty by 2022. Its second goal is to get the national poverty line reduced significantly below 10 percent by 2030.

There are several poverty reduction programs currently in place in Jamaica. Further reducing the poverty rate in Jamaica is feasible due to the government’s thorough NPEP. If the government reaches the goals outlined in the policy, poverty reduction will be systemic and all Jamaicans will be able to realize the dream of equitable opportunities. While there are significant challenges, Jamaica’s economic future is promising.

– Jeanine Thomas

Photo: Flickr

Water Quality in Seychelles

Water Quality in Seychelles
The Republic of Seychelles is an archipelago of 115 low-lying, granitic islands in the western Indian Ocean. This sovereign country is a popular holiday getaway for tourists wishing to lounge on its stunning beaches; discover its diverse ecological system; and visit ancient volcanos. Water quality in Seychelles remains a major issue, however.

Though the Republic’s 1993 Constitution defines access to potable water as a basic right to all Seychellois, water shortage and pollution is a defining factor of the archipelago.

While local tap water meets World Health Organization’s specifications, the Seychelles Islands official tourism website advises visitors to drink bottled water because the chlorinated tap water may not be safe to drink. Furthermore, because water quality in Seychelles is variable in undeveloped areas, it is recommended that tap water be boiled, filtered or chemically disinfected before consumption.

The islands’ groundwater resources are extremely limited, and the terrain makes it even harder to procure fresh water. Due to the country’s prevailing granitic landscape, water that is available is often too hard and salty to consume.

Of course, rapid change in weather and rainfall patterns is a global phenomenon and is not uncommon to Seychelles. Shifting weather patterns directly affect the water supply and reduce the precious steam flow, making it difficult for groundwater to recharge.

Most of the water in Seychelles comes from hills and streams from the mountainside, flowing more freely during monsoon and rain seasons. As a result of heavy rainfall, storm surge, flooding and poor sanitation, the presence of water-related bacterial infections—including Campylobacter jejuni, small strains of E.coli, cholera and other contaminants—in the country’s water supply can cause traveler’s diarrhea, a term used to describe gastrointestinal infections caused by ingesting bacteria, viruses and protozoa.

Four desalination plants compensate for the water shortage during drier seasons and produce potable water. They help enhance water reliability of the three main islands. The country is not only managing its scarce water resources, but it is also searching for more water. Of course, water quality in Seychelles remains an accompanying concern.

Options such as drilling for underground water are currently being explored to supplement the existing surface water (usually accumulating on slippery rock fissures if not running off to sea) and add to the water supply of dams and desalination plants.

In November 2009, the Seychelles National Climate Change Committee embarked on an ambitious vision to engage all levels of the Seychellois society in combating the potentially disastrous effects of climate change.

The committee recognized that water resources in islands as small as Seychelles were “likely to be seriously compromised”—both due to growing demand and climate change —and predicted that Seychelles would be facing “serious water shortages in the near future.”

This was despite the presence of extensive water distribution networks that served about 87% of the population with treated water. Furthermore, an increase in surface air temperatures would result in reduced streamflow due to water evaporation and further exacerbate the problem of water supply.

By 2030, the water demand on the main island of Mahé is expected to grow by 130%. Currently, Seychelles can only meet 60% of its residents’ water.

Earlier this month, a ban on manufacturing, distribution and commercial usage of common plastic items—such as Styrofoam containers, utensils and cups—went into effect in an attempt to make Seychelles cleaner and more beautiful.

The Environmental Protection Regulations of 2017 restrict the importation of certain types of plastic bags and authorize importation permits for biodegradable bags. Treatment of wastewater is being upgraded through renovations of existing sewerage pumping stations and construction of five new ones, with a Sanitation Master Plan currently in the works.

Furthermore, a new Center for Ocean Restoration, Awareness and Learning (CORAL) opened in May 2017 on the island of Praslin to study, brainstorm ideas and increase awareness of the ocean-conservation efforts by bringing scientists and students together from all over the world.

Seychelles is the smallest African state, with only about 84,000 people. Its sustainable tourism model remains an example for the rest of the world. As the archipelago comes to terms with its water shortage and pollution problems, reliable and sustainable water supply remains as essential as ever. If the water quality in Seychelles can be improved, the quality of life of residents and tourists—and their future generations—will only become better.

– Mohammed Khalid

Photo: Flickr

Increasing Tourism in Nigeria Could Strengthen Economy


In a meeting on June 23, the Nigerian Tourism Development Corporation (NTDC) announced a partnership with the Niger Delta Development Commission (NDDC).  The establishment of this association hopes to bolster tourism in Nigeria. The project seeks to completely rebrand the tourism industry, all while creating a multitude of new jobs and strengthening Nigeria’s economy. According to the assistant director of NTDC’s press unit, Mrs. Adamma Afanga: “we need to start within our domain, focusing on consumption of our assets, promotion, and development of domestic tourism.”

In recent years, the Nigerian government and people have faced unemployment, the devaluation of Nigerian currency, terrorist activity and political instability. While this has made it difficult to attract foreign visitors, there is a significant opportunity for a turnaround. Inflation has slightly decreased, and Nigeria’s GDP recently saw its best quarter performance in the past year. Additionally, President Muhammadu Buhari has received positive marks in the international community for his humanitarian efforts and economic policies.

Because of these reasons, attracting foreign visitors has been difficult in recent years.  As a result tourism in Nigeria has been particularly affected by political and financial instability. Most notably, terrorism and economic recession have made many international visitors less likely to visit Nigeria. However, by promoting investment and rebranding the tourism industry, there is the potential for significant economic growth in the country.

Currently, tourism in Nigeria is a relatively small industry with much room for growth but many challenges to overcome. In 2016, the hospitality industry comprised 4.8 percent of the Nigerian GDP. Despite the fact that many new hotels were created in the last few years, the number of foreign visitors to Nigeria declined significantly. The majority of clientele in the hospitality industry were domestic, corporate guests looking to travel in the cheapest way possible, which is readily achievable given the vast supply of accommodations.

The primary challenge of this partnership is synergizing the different aspects of tourism in Nigeria. According to Folorunso Coker, Director-General of the NTDC, the ultimate goal of this partnership is to create an all-inclusive tour package for Nigerians. This would not only capitalize on the country’s existing domestic travel industry but would create many new jobs. This is because building the necessary infrastructure, security and technology for attracting tourists will require skilled laborers.

As stated by Coker, strengthening tourism in Nigeria “will have multiple effects on job creation and poverty alleviation while strengthening GDP and [Nigeria’s] currency. Everyone in the value chain of tourism must work together and be ready to drive the market.”

– Julia Morrison

Photo: Flickr

How Tourism Could Alleviate Poverty in Saint Pierre and Miquelon

Off the coast of Newfoundland in North America lie the islands of Saint Pierre and Miquelon, a French territory with a rich history and a poor economy. The island is home to around 5,000 people, of which 78% are of working age.

Poverty in Saint Pierre and Miquelon

Poverty in Saint Pierre and Miquelon has increased due to the islands’ reliance on a fishing industry affected by overfishing and changing global climatic conditions. The fishing economy downturn, which has caused the present state of poverty in Saint Pierre and Miquelon, threatens to prevent the expansion of clean water infrastructure and, by extension, sanitation.

Once bustling epicenters notorious for their pivotal role in illegal alcohol importation into the United States (U.S.) during prohibition, these islands are now faced with a severe lack of economic stimulus, causing a certain level of stagnation in the territory.

Poverty in Saint Pierre and Miquelon can largely be attributed to its suffering fishing industry, which is under pressure from competing for Canadian commercial fishing, changing climatic conditions and general overfishing. Fishing, on both the commercial and local scale, provides the livelihoods of 41% of the territory’s population. This means that any fluctuation in fishing profits directly influences the standard of living for almost half the territory’s population.

Economic Struggles

Although the islands of Saint Pierre and Miquelon are a territory of France, a country with one of the highest nominal gross domestic products (GDPs) in Europe, the islands are far away from entertaining the standard of living enjoyed by the landlocked French. France is responsible for much of the existing infrastructure and development on Saint Pierre and Miquelon. However, France lacks the fiscal budget or political interest to fully incorporate the islands, forcing it to find new ways to expand its economy to accommodate its growing population and standard of living.

The Impact of Tourism

Tourism is one sector Saint Pierre and Miquelon could potentially utilize as a respite from the fishing industry’s contracting revenues. With the territory’s intriguing smuggling history and its arguable position as the last true French outpost in North America, the potential for a thriving tourism economy is present.

Tourism can alleviate poverty in Saint Pierre and Miquelon by creating new jobs and opportunities for its working population, resulting in the country’s overall economic growth. Tourism can also lead to the development and establishment of new infrastructures, including health care centers and schools, which could ultimately benefit the nation’s population.

Final Remark

According to the World Bank, the tourism industry can assist developing nations like Saint Pierre and Miquelon in diversifying their economies and markets, creating new opportunities for their citizens. Therefore, by developing its tourism sector, the government of Saint Pierre and Miquelon can create new opportunities for its population, ultimately lifting them out of poverty.

– Spencer Linford

Photo: Flickr
Updated: June 01, 2024