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10 Facts About Poverty in Brazil

Facts About Poverty in Brazil
The biggest country in South America is dealing with one of the most drastic poverty issues on Earth. Despite billions of dollars invested in event tourism like the World Cup (2014) and the Olympics (2016), Brazil’s economy has begun to spiral downward as the country faces its biggest decline in over a decade. These crucial facts about poverty in Brazil offer insight on the issues that plague them.

Poverty in Brazil

  1. The homeless population is revolutionary
    One of the recent facts about poverty in Brazil is that squatters there have collectively chosen to occupy abandoned hotels and are now facing the threat of eviction. One example is the Mauá Occupation, which houses over 1,000 people that make up around 237 families. Mauá was a unique idea back in 2007 when the homeless population was barely surviving on the streets and began taking up land by way of force. Now, it has become a full-blown movement. Like many countries, Brazil suffers from gentrification and increased living costs. Brazil’s gentrification has created a revolution of homeless people occupying space both as a protest and out of necessity. This past November, over 20,000 homeless marched throughout the city in direct protest of the housing inequity.
  2. Slavery ended only 130 years ago; inequality still devastating
    In 1888, Brazil became the last country in the Western Hemisphere to abolish slavery, and the social, economic and moral ramifications of it still ripple throughout the nation. This is one of the more subtle and lesser spoken facts about poverty in Brazil because it reflects an ugly part of a recent history. Known as Afro-Brasileiros, black and brown Brazilians make up 51 percent of the nation’s population and suffer from discrimination and exclusion more than their lighter-skinned neighbors. Afro-Brasileiros also make up the majority of the homeless and poor population, and only seven percent of the city’s rich self-identify as such. Despite being known as a racial democracy, 80 percent of Brazil’s richest one percent are white, while only 13 percent of black and mixed-race Brazilians between 18 and 24 are currently enrolled in college. Afro-Brasileiro activism takes many forms; the Quilombos are descendants of slaves fighting for reparations. Another group focuses on the disproportions of blacks dying at the hands of Brazilian police. They have the slogan #VidasNegrasImportam, which translates to “Black Lives Matter.”
  3. New spending cap is making matters worse
    The new spending cap, known as PEC 55, will cut public spending for programs that help the poor. A U.N. official lauded it as the most socially regressive austerity package in the world. With 60 percent of Brazilians opposing it, the 20-year spending freeze inducted by President Temer has been protested and deemed a direct attack on the poor by many analysts.
  4. Unemployment was once slow growing; now it’s much faster
    Since the end of the World Cup in 2014, Brazil’s economy has been steadily declining to a new low. Unemployment grew from about six percent in December 2013 to nearly 12 percent in November 2016, despite almost 30 million Brazilians rising out of poverty between 2004 and 2014. Economic inequality is now expected to increase and around 2.5 million more Brazilians will be forced into poverty in the coming years.
  5. Water everywhere but not much to drink
    Roughly 20 percent of the world’s water supply is in Brazil yet much of the population suffers from a water shortage. The problem is that water is being used to power the economy, not the people. This is actually one of the older facts about poverty in Brazil, as the nation’s water misallocation has always been notoriously underserving. More than 60 percent of the nation’s energy is from hydropower plants while 72 percent of the water supply is consumed by agriculture via irrigation. In fact, Brazil is one of the most water-dependent nations in the world. More than eight percent of its GDP is agriculture and agroindustries, making it the world’s second-largest food exporter. Allocation of most of the nation’s water goes to the business sectors, and between 2004 and 2013, there was only a 10 percent increase in sanitation networks among the poorest 40 percent (i.e., households with toilets).
  6. From an emerging economy to a shrinking one
    Formerly an emerging economy growing at a rate of 7.5 percent in 2010, it shrunk at about the same rate over the last two years. Shrinkage is expected to increase due to President Temer’s privatization plan, and around 57 state assets are set to undergo a privatized makeover. From highways to airports and even the national mint, the privatization is in an effort to increase employment and improve quality of the service provided by the sectors. There is some proof that this could work; back in the 90s, the privatization lead to the considerable modernization of several crucial sectors. The best possible scenario still leaves the majority of the population, specifically the poorest, out of the financial loop.  Attracting international interests is great for the richest population looking to sell land to the highest bidder which happens to be China.
  7. Deforestation of the Amazon by China hurts locals directly
    China’s overwhelming demand for food meets Brazil’s immense agricultural production in a way that primarily benefits the wealthiest of Brazil. The Brazilian government has been selling off large parts of the Amazon to China directly, ironically in an effort to help China’s pollution while hurting Brazil’s sensitive ecology and economy. China’s deforestation of the Amazon temporarily increases employment in Brazilian cities near the forest, but then once first stages of production are over, massive layoffs result in a plummet of employment with the social climate (increased crime and violence) going with it. The massive deforestation even threatens Brazil’s ecological promises involved with the Paris Agreement.
  8. Infant mortality has dropped significantly but could be lower
    As of 2016, Brazil has significantly lowered it’s infant mortality rate from about 53 deaths per 1,000 (circa 1990) live births to about 14. While this is quite an achievement for such a developing country with so many social problems, UNICEF, the organization most responsible for helping the decline, remarked that the indigenous children of Brazil’s mortality rate is twice as high as those of city-born children. This shows that even for countries with relatively low levels of mortality, greater efforts to reduce disparities at the sub-national level are still needed. According to UNICEF, back in 2013 at least 32 municipalities still had an infant mortality rate of 80 deaths per 1,000 live births.
  9. Worker’s Unions are going extinct
    A recent law passed by President Temer allows employers to bypass nearly all hurdles set up by unions by eliminating a “union tax” that generates funding for worker’s unions. Designed to aid multinational corporations and not workers, the “reform” has been criticized by the International Labor Organization (ILO) as being in violation of international conventions. This permits inhumane working conditions and legalizes free labor. Legislation changes like this alter the future of the Brazilian workforce exponentially as multinational companies begin their migration into the Amazon.
  10. The right conditions for slavery
    Temer altered the definition of slavery so that it is defined by the victim’s freedom to leave. Meaning if a worker is kept in all the same living conditions as slavery, but not being physically forced to stay, it is to be considered legal labor. This is an emerging fact about poverty in Brazil because it has not happened yet, but legislatively, the absurd conditions do exist and the threat of slave labor is very real. This critical alteration of the definition has lead to the need for deeper investigations and, in alignment with the new changes, requires a police report with every case, creating more complications with each case. This drastically hurts the effectiveness of the ILOs ongoing fight against slavery which saw the liberation of more than 30,000 slaves in Brazil since 2003. The migration of businesses to the Amazon has made investigations much harder for the ILO and the conditions under which slaves work have gotten more brutal as well.

– Toni Paz
Photo: Flickr

Increasing Employment Opportunities in Serbia

Increasing Employment Opportunities in SerbiaUnemployment remains a growing concern for many Serbians. The country’s statistical office reports that Serbia’s unemployment rate rose to 19 percent in June 2016. The Belgrade region had the highest unemployment rate of 20.5 percent, and southern and eastern Serbia had an unemployment rate of 20.2 percent. However, work is being done to increase employment opportunities in Serbia.

New Jobs Opening in Serbia

In March 2017, Prime Minister Aleksandar Vucic attended the signing of an agreement with the U.S. company NCR that plans to create 1,500 new jobs in Serbia. NCR will have more than 3,600 permanent employees in Serbia once the new jobs are created. This will be a significant increase from the 300 employees that NCR hired when the company arrived in Serbia in 2011.

In September 2017, Turkish investors expressed interest in opening 3,500 jobs in southern Serbia within the next three years. Zoran Djordjevic, Serbia’s labor minister, says talks will be held with the investors to explore all potential opportunities for cooperation. Djordjevic also presented the investors with Serbia’s new laws that will have an impact on their business activities.

Investing in Serbia’s Youth

The Center for Advanced Economic Studies presented a study entitled “Mapping Barriers to Youth Entrepreneurship in Serbia” to the Serbian Chamber of Commerce (SCC) at a panel discussion on April 25, 2017. Marko Čadež, the SCC president, mentioned that entrepreneurship is a key solution for increasing employment opportunities in Serbia. Čadež added that the SCC is continuously working to encourage and support business start-ups.

Axel Dittmann, Serbia’s German ambassador, noted that youth unemployment is an important segment to be addressed. Dittmann also said that Serbia’s youth have the greatest potential to boost the country’s economic growth. Snežana Klašnja, Serbia’s assistant minister of youth, says that while only 817 young Serbians have been employed through her ministry’s initiatives, there is still much work to be done.

Serbia’s Increasing Employment Rate

In October 2017, there were 622,000 unemployed people in Serbia, a slight decrease from the 55,000 additional Serbians unemployed in 2016. “We expect for the annual unemployment rate to further drop,” says Zoran Martinovic, the director of the National Employment Office. Martinovic also revealed that 206,000 Serbians found employment in the first nine months of 2017.

Martinovic added that IT professionals, engineers and financial experts are most in demand for Serbia. A few unemployed Serbians expressed interest to participate in retraining programs as well. Serbia’s government is implementing a retraining program for 900 IT professionals who are preparing for more complex IT jobs.

ICT Hub’s Success in Serbia

Decreasing job opportunities have also caused many Serbians to leave their country. However, a program known as ICT Hub is working to increase employment opportunities in Serbia. Launched as part of a partnership with USAID in 2014, ICT Hub mentors Serbia’s entrepreneurs, helping them avoid the risks and costs of pursuing innovative ideas.

“Many of my friends left Serbia, but I believe one can succeed here just as anywhere else,” says Uroš Mijalković, a Serbian entrepreneur who managed to create a mobile gaming application with ICT Hub’s help. Mijalković’s gaming application Karate DO is now played by 12,000 people in 162 countries. “So far, 25 businesses with market potential have gotten off the ground at the ITC Hub,” says Kosta Andri, the ICT Hub’s director.

While these efforts are helping Serbian citizens find more job opportunities, there is still much work to be done. The growing rate of Serbians leaving their country can still decrease based on the help of Serbia’s government, ITC Hub and other entities. For now, the main goal of these projects and efforts is to increase employment opportunities in Serbia.

– Rhondjé Singh Tanwar

Photo: Flickr

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5 Development Projects in Comoros Slowly Strengthening Economy

Comoros, also known as the Union of Comoros, is a small volcanic archipelago island off the east coast of Africa. The country’s constant political and economic instability has led to an increase in poverty since it gained independence in 1975. As of 2014, roughly 18 percent of Comorians live below the poverty line.

Comoros is considered one of the world’s poorest countries. Over the last seven years, many strides have been made to further development in Comoros. Listed below are five development projects in Comoros that have had a big impact on reducing poverty, increasing employment opportunities and helping create a better economy.

  1. Family Farming Productivity and Resilience Support Project
    This project was approved in May 2017 and is still ongoing. The International Fund for Agriculture Development (IFAD) financed the project, loaning Comoros around $4 million to improve the country’s agricultural productivity and to get farmers in more rural areas the supplies and knowledge they need to grow more and healthier crops. Since Comoros is chiefly an agriculture-based country, this plan will increase employment as well.
  1. National English Language Education Strategy
    Starting in 2014, the Peace Corps has been sending volunteer English teachers to Comoros to teach children English as a second language. The students range from middle school to high school age. As of 2016, approximately 40 English teachers were teaching in Comoros.
  1. Co-management of Coastal Resources for Sustainable Livelihoods Project (CoReCSuD)
    This project was approved in December 2010 and ended in April 2017. The World Bank loaned Comoros roughly $2.7 million to create and implement a coastal management plan. A large part of employment and income in many rural areas in Comoros is fishing. This project increased credit to many fishing villages, decreasing poverty and increasing employment opportunities.
  1. Social Safety Net Project
    This project was approved in March 2015 and is set to close in June 2019. The World Bank loaned Comoros $6 million to increase access to nutrition services and a safety net for impoverished families, especially in rural areas.
  1. Economic Reform Development Policy Operation
    In November 2012, the World Bank gave Comoros a $5 million grant to strengthen the economy. The operation ended in December 2013. The operation’s goal was to strengthen the economy’s transparency and accountability.

Through these five development projects in Comoros, the economy has slowly started improving. Comoros has borrowed or been granted more than $17 million since 2010 from different organizations to fund these improvement projects. The GDP growth has increased to a little more than two percent from one percent in 2015.

Beyond these five development projects in Comoros, the nation’s government still has more room to grow. The unemployment rate is still high, around 19 percent. However, progress is slowly but surely being made, and these projects have left a lot of room for Comoros to move forward.

– Courtney Wallace

Photo: Flickr

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The Top 10 Most Important Current Global Issues

current global issues

Among all the good in the world, and all the progress being made in global issues, there is still much more to be done. Given the overwhelming disasters that nations, including the U.S., have been or still are going through, it is important to be aware of the most pressing global issues.

Top 10 Current Global Issues

  1. Climate Change
    The global temperatures are rising, and are estimated to increase from 2.6 degrees Celsius to 4.8 degrees Celsius by 2100. This would cause more severe weather, crises with food and resources and the spread of diseases. The reduction of greenhouse emissions and the spreading of education on the importance of going green can help make a big difference. Lobbying governments and discussing policies to reduce carbon emissions and encouraging reforestation is an effective way of making progress with climate change.
  2. Pollution
    Pollution is one of the most difficult global issues to combat, as the umbrella term refers to ocean litter, pesticides and fertilizers, air, light and noise pollution. Clean water is essential for humans and animals, but more than one billion people don’t have access to clean water due to pollution from toxic substances, sewage or industrial waste. It is of the utmost importance that people all over the world begin working to minimize the various types of pollution, in order to better the health of the planet and all those living on it.
  3. Violence
    Violence can be found in the social, cultural and economic aspects of the world. Whether it is conflict that has broken out in a city, hatred targeted at a certain group of people or sexual harassment occurring on the street, violence is a preventable problem that has been an issue for longer than necessary. With continued work on behalf of the governments of all nations, as well as the individual citizens, the issue can be addressed and reduced.
  4. Security and Well Being
    The U.N. is a perfect example of preventing the lack of security and well being that is a serious global issue. Through its efforts with regional organizations and representatives that are skilled in security, the U.N. is working toward increasing the well being of people throughout the world.
  5. Lack of Education
    More than 72 million children throughout the globe that are of the age to be in primary education are not enrolled in school. This can be attributed to inequality and marginalization as well as poverty. Fortunately, there are many organizations that work directly with the issue of education in providing the proper tools and resources to aid schools.
  6. Unemployment
    Without the necessary education and skills for employment, many people, particularly 15- to 24-year olds, struggle to find jobs and create a proper living for themselves and their families. This leads to a lack of necessary resources, such as enough food, clothing, transportation and proper living conditions. Fortunately, there are organizations throughout the world teaching people in need the skills for jobs and interviewing, helping to lift people from the vicious cycle of poverty.
  7. Government Corruption
     Corruption is a major cause of poverty considering how it affects the poor the most, eroding political and economic development, democracy and more. Corruption can be detrimental to the safety and well being of citizens living within the corrupted vicinity, and can cause an increase in violence and physical threats without as much regulation in the government.
  8. Malnourishment & Hunger
    Currently there are 795 million people who do not have enough to eat. Long-term success to ending world hunger starts with ending poverty. With fighting poverty through proper training for employment, education and the teaching of cooking and gardening skills, people who are suffering will be more likely to get jobs, earn enough money to buy food and even learn how to make their own food to save money.
  9. Substance Abuse
    The United Nations reports that, by the beginning of the 21st century, an estimated 185 million people over the age of 15 were consuming drugs globally. The drugs most commonly used are marijuana, cocaine, alcohol, amphetamine stimulants, opiates and volatile solvents. Different classes of people, both poor and rich, partake in substance abuse, and it is a persistent issue throughout the world. Petitions and projects are in progress to end the global issue of substance abuse.
  10. Terrorism
    Terrorism is an issue throughout the world that causes fear and insecurity, violence and death. Across the globe, terrorists attack innocent people, often without warning. This makes civilians feel defenseless in their everyday lives. Making national security a higher priority is key in combating terrorism, as well as promoting justice in wrongdoings to illustrate the enforcement of the law and the serious punishments for terror crimes.

With so many current global issues that require immediate attention, it is easy to get discouraged. However, the amount of progress that organizations have made in combating these problems is admirable, and the world will continue to improve in the years to come. By staying active in current events, and standing up for the health and safety of all humans, everyone is able to make a difference in changing the fate of our world.

– Chloe Turner

Photo: Flickr

 

 

Big Four Causes of Poverty in Honduras

Big Four Causes of Poverty in Honduras

Honduras is one of the poorest countries in Central America, with an estimated  51.3% of the population living in poverty. Political and socioeconomic vulnerabilities have subjected many residents to food insecurity and violence, putting high-risk groups such as women, children and people living in rural areas in great danger of succumbing to extreme poverty. 

Below are the four main causes of poverty in Honduras:

Hunger and Malnutrition

Honduras has a population of over ten million people, yet acute food insecurity affects an estimated  2.3 million of this number every year. Increasing levels of inequality, vulnerability to extreme weather conditions and a lack of access to vital resources have contributed to widespread hunger, especially for residents living in rural and indigenous areas. Chronic malnutrition also causes stunting in 23% of children and can be attributed to low nutrient density in available foods, the prevalence of early childbearing and poor child-feeding practices. Lacking nutrients of concern include zinc, vitamin B2, vitamin B6, niacin, folate and vitamin C.

Natural Disaster and Drought

Honduras is highly vulnerable to natural disasters. Hurricanes, heavy rain, flooding and frequent droughts often destroy crops and hinder agricultural production. Rural populations are especially dependent on agriculture as a source of livelihood and food security. The country’s economy also bases much of its revenue on agriculture, specifically key export crops such as sugarcane, bananas and coffee beans. In times of severe weather conditions or natural disasters, many vulnerable populations are often subject to large-scale crop devastation and significant infrastructure damage, which causes income loss and forced displacement.

High Unemployment

Honduras is heavily reliant upon remittances, which constitute approximately 29% of its GDP. Remittances allow the Honduran government to maintain hard currency reserves and provide families with the ability to afford food, education, health care and housing. However, the success of remittances has removed the government’s incentive to provide basic services to citizens, which has fueled migration and curbed economic growth. Without state intervention to provide better economic opportunities to residents, such as increased job opportunities, many are left to rely on an informal economy that only contributes to around 20% of the country’s GDP. Without the means to enter into a formal labor force, a growing number of Hondurans drawn by the attractiveness of remittances are migrating, often through illegal methods, which puts them at risk of being victims of criminal activity or becoming poor in other nations abroad.

Violence

Honduras has the highest murder rate in the world, with a homicide rate of 38.34 as of 2021. The level of crime has cost the country an estimated 6.5% of its annual GDP. Pervasive violence in Honduras – which predominantly consists of theft, extortion, corruption and homicide – has historically dismantled neighborhoods and encouraged mass migration.  

The prevalence of violence and homicide is largely related to drug trafficking and gang warfare. Crime and violence in Honduras have negatively impacted its economy, as resources that could be used to provide additional food security or a better educational system are instead allocated to counter criminal activity. Despite the government’s focus on combating crime, police investigative techniques and new citizen security policies have often proved to be ineffective, maintaining the high level of risk attributed to impoverished urban communities. This, in turn, perpetuates poverty in Honduras.

A Brighter Future: World Food Programme

While the causes of poverty in Honduras appear to be rooted in a variety of issues, many organizations such as the World Food Programme (WFP) have provided support and services to people in need by providing well-balanced meals to students and food to disaster-stricken populations. By working alongside the government, the WFP has supported the development of a national pathway for food systems transformation and has donated approximately $1.2 million to school-based programs to support better education. Along with other humanitarian groups, WFP has promoted the resilience of national systems linked to emergency preparedness and response, social protection and support for nutritionally vulnerable groups. These efforts, coupled with a greater sense of awareness, may serve to help to reduce poverty in Honduras.

– Sarah Jane Fraser, Moon Jung Kim

Photo: Flickr

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Addressing the Causes of Wealth Inequality in India

Wealth Inequality in India India is considered to be one of the foremost emerging economies in the world and has a rapidly growing Gross Domestic Product (GDP). Despite this, the annual Global Hunger Index (GHI) has put India at 100th place among 119 countries. This is a case where the GDP does not properly represent the country’s situation, as it is facing major wealth inequality. In India, the top 10 percent of the population control the country’s wealth, while the common people, more than a billion in number, fall along the lower end of the Hunger Index. The major causes of wealth inequality in India can be attributed to a large number of people in India being either unemployed or underemployed.

The country is experiencing poverty growth, as poverty will only increase with joblessness and lead to more hunger in the rural and semi-urban landscape. The hunger problem persists, despite the government spending to feed the people. In addition, this has prevented the country from allocating more fiscal resources toward infrastructure and other areas needed to develop the economy. Even with India having the world’s fastest-growing economy over the last three years, the problems persist.

It is not all negative though, as the undernourishment level and child mortality rate in the country has declined significantly since 1991, though the issues are still serious. The International Food Policy Research Institute said in a statement, “India was rated as ‘alarming’ in 2013 and has experienced an improvement in its GHI score over recent years. Since 2000, the country has reduced its GHI score by a quarter.” The statement continues on with, “India is making tremendous progress, but we have significant challenges ahead.”

In an attempt to address the causes of poverty and wealth inequality in India, among other countries, the United Nations declared a set of eight Millennium Development Goals (MDGs) at the start of the millennium, which they aimed to complete by 2015. After their inability to achieve this within the targeted date, the U.N. expanded and modified the goals to a total of 17 goals to be achieved by 2030, called Sustainable Development Goals (SDGs).

The first two of these goals, featured in both MDGs and SDGs, are the removal of hunger and poverty. Since becoming a quickly emerging economy, India has pledged to work toward these goals. It has been committed to achieving SDGs, focusing specifically on ending poverty. The Indian government believes that if poverty can be removed, hunger will go along with it. Malnourishment comes from the inability to procure food because of a lack of money, so India remains a country of constraints with its large wealth disparity.

If we hope to combat the causes of wealth inequality in India, we must improve the underemployment of India. The National Institutions for Transforming India claims that a “severe under-employment” is the main problem facing India. According to the Institutions, in order to combat underemployment, and thus reduce poverty, “what is needed is the creation of high-productivity, high-wage jobs.”

– Drew Fox

Photo: Flickr

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Inequality: Causes of Poverty in Liechtenstein

Immigrant In-Equality: Causes of Poverty in Liechtenstein

The Principality of Liechtenstein is a country located in Europe that is landlocked between Switzerland and Austria. It is a relatively wealthy country, containing one of the highest measures of GDP per capita in the world, a low inflation rate and the benefits of a monetary and economic union with Switzerland. It therefore has one of the highest standards of living across the globe, although it comes with the trade-off of an extremely high cost of living.

Much of the country’s wealth can be attributed to its status as a tax haven, though it has taken steps in recent years to regulate and rid itself of this image and to reposition itself as a legitimate financial center. Despite the country’s economic successes, there is still poverty to be found here.

The causes of poverty in Liechtenstein become evident when analyzing the immigration policies put in place by the country’s government. In 2013, many media outlets in Europe began to report that the growing immigrant population was composed of many low-income families. This is mainly due to the increased share of the population that are immigrants, with the incomes earned by these immigrants being lower than those of the native population. This has caused the overall income growth of Liechtenstein to be subjected to downward pressure in recent years.

The unemployment rate of immigrants in Liechtenstein is approximately twice as large as it is for national citizens that have lived in Liechtenstein for their entire lives. In terms of how this applies in practice, one in two unemployed persons living in Liechtenstein is an immigrant. Despite these concerns, compared to other European countries, Liechtenstein remains in a prosperous position and the unemployment rate in general is at a very low level. As of 2012, the average unemployment rate faced by the country was 2.4 percent, with the unemployment for national citizens being 1.7 percent, compared to immigrants, who had an unemployment rate of 3.5 percent.

This is the result of a restrictive immigration policy based on bilateral agreements and clear economic considerations, combined with the insatiable job demand of Liechtenstein’s economy. One of the essential guidelines for immigrants is that there is a requirement for the person immigrating to have the ability to support one’s own cost of living when applying for residence. This means that the onset of poverty usually occurs sometime after having immigrated, with the main reasons for poverty ultimately being unemployment, illnesses, death of an employed family member and excessive indebtedness.

A relevant quote by economist John Kenneth Galbraith rings true with poverty in Liechtenstein, in which he writes, “people are poverty-stricken when their income, even if adequate for survival, falls markedly behind that of the community.” This is one of the main causes of poverty in Liechtenstein and it illustrates an area that can be improved upon, leading to a greater equality of wealth between national citizens and immigrants and less poverty overall.

– Drew Fox

Photo: Flickr

The Slovenia Poverty Rate Is Improving

Slovenia Poverty Rate

In the wake of the 2008 financial crisis, one country that seemed to get overlooked was Slovenia. A Balkan country located in the heart of Central Europe, Slovenia wasn’t regularly mentioned in any newspapers or government hearings, but it, too, has had long-lasting economic issues.

The Slovenia poverty rate skyrocketed in four years, from 11.3 percent in 2008 to 14.5 percent in 2012, according to the World Bank. This number has since hovered around that peak, with the most recent data out of the C.I.A. World Factbook stating that, as of 2015, Slovenia’s poverty rate has remained at 14.3 percent.

Furthermore, Slovenia’s unemployment rate also saw a massive multi-year increase, from 4.38 percent in 2008 to 10.11 percent in 2013, according to the Organisation for Economic Co-operation and Development. World Bank data also shows that Slovenia’s GDP saw steady decreases while their population grew slightly over the same period.

The economic situation in Slovenia, though, has begun to change for the better. While Slovenia’s poverty rate, unemployment rate and the like have worsened since 2008, their trajectories are now turning around, forecasting a positive future for the small European nation.

By focusing on its economy, Slovenia has used export development as a catalyst to improve other societal factors. The Slovenia poverty rate, while currently at 14.3 percent, hasn’t worsened, their unemployment rate has dropped to 8.01 percent of the labor force and their projected GDP growth rate is a respectable 3.1 percent.

What this means is that, while Slovenia has undoubtedly suffered economic hardships over the last decade, there is hope for the future. With Slovenia’s poverty rate stabilizing and with other economic factors seeing marked improvements, Slovenia is on track to make a strong recovery. The next few years could be bright for the country and its people.

– John Mirandette

Photo: Flickr

Four Potential Solutions to the Youth Unemployment Crisis

Youth Unemployment CrisisYouth unemployment is an increasing worldwide crisis. As of 2016, the International Labor Organization (ILO) reported that 71 million 15 to 24-year-olds around the world are unemployed, many of whom are facing long-term unemployment. To put this number into perspective, youth unemployment is “close to an historic peak” of 13 percent.

The youth unemployment crisis impacts low-income countries the most because even employed citizens are at risk of poverty. In 2016 the ILO estimated that about 156 million employed youths in these countries lived in poverty. This makes up a substantial 38 percent of youths in developing nations.

For the sake of the world’s economy as well as these youths, here are four potential solutions to the youth unemployment crisis:

  1. One of the main causes of the youth unemployment crisis is the lack of quality education worldwide. It was reported in 2016 that about 40 percent of employers find it difficult to recruit people with needed skills. This is because about 250 million children worldwide do not acquire basic reading, writing and math skills. Therefore, nearly one in five youths do not gain the most basic skills needed for employment. By ensuring quality education globally, students will be able to acquire skills needed for gaining employment.
  2. A significant number of youths cannot acquire the education needed for employment because of crisis and conflict. An estimated 75 million children between the ages of three and 18 currently live in countries that are in conflict. These children are twice as likely as their counterparts to have no access to quality education. Thus, to resolve the youth unemployment crisis by allowing youth to get jobs, crisis and conflict in war-torn countries must first be dramatically reduced.
  3. To resolve the youth unemployment crisis, the focus must also shift toward gender equality in education. Gender distribution in the international labor force is woefully disproportionate. According to the ILO, 53.9 percent of young men compared to 37.3 percent of young women are employed. This is due in part to cultural beliefs regarding working women, but also has to do with a lack of women’s education. Globally, 61 million young women are not enrolled in primary or lower-secondary school, giving them little opportunity to gain skills for employment. This includes literacy, as “two-thirds of the world’s illiterates are women.” Therefore, addressing gender inequality in education is a necessary step towards reducing youth unemployment.
  4. Aside from reforming education, tackling youth unemployment will also take commitment to funding research, educational programs and employment programs. In order to finance these programs, funding for education needs to increase to $3 trillion by 2030. As the current investment in education stands at $1.2 trillion, reaching this goal requires large-scale cooperation. This means that companies, governments, non-government organizations and schools must form partnerships to invest in research and solutions to youth unemployment.

Resolving the youth unemployment crisis is critical for not only the well-being of youths worldwide, but also for the global economy. Mass youth unemployment slows progress and thereby it is essential to take steps toward ending it.

– Haley Hurtt
Photo: Flickr

Cost of Living in Bulgaria

Cost of Living in BulgariaAlong the coast of the Black Sea lies a country possessing such a diverse set of landscapes, that attempting to characterize it in any one way is impossible. Bulgaria boasts an abundance of natural beauty, rich history and distinctive culture, entirely situated within the Balkans peninsula.

With its beautiful lakes, mountains and historic towns, it is no surprise many have moved from different countries in Europe to Bulgaria in search of the scenic life. Around 18,000 Britons have made the choice.

The terrain is obviously not the lone incentive for those deciding to relocate. Of course, another major source of motivation is the cost of living in Bulgaria. For those arriving from the U.K., the cost of living in Bulgaria is lower across the board. From house prices or rent, to utilities, to food, even to clothes.

While this creates an opportunity for some to afford more and lead an improved standard of life than possible elsewhere, the cost of living in Bulgaria is not as low as it is for good reason.

The 2008 financial crash hit Bulgaria harder than almost anywhere else in the E.U. When Bulgaria’s property bubble burst, house prices fell rapidly, along with the number of property buyers.

As the property bubble had been the chief driver of GDP in the nation, economic growth was drawn to a sharp halt in 2008. This resulted in wages plummeting and unemployment soaring.

In 2013, Bulgaria’s unemployment rate rose to almost 12 percent and the average annual wage was less than 2000 euros. The number of Bulgarians out of work and earning so little spelled trouble for the country’s consumer market.

The financial crash led to Bulgaria’s GDP becoming the lowest in the E.U. Consequently, the cost of living in Bulgaria dropped significantly, yet only relatively so.

While the cost of living in Bulgaria is remarkably low, in 2016 it was reported that just under 80 percent of Bulgarian households still lived below the cost of living.

It is the existence of such widespread poverty that is credited as the principal reason for a recent survey finding that Bulgaria was the unhappiest country in the E.U., with an average life satisfaction score of less than five out of ten.

After nearly five years of stagnant house prices, they are at last beginning to rise. The recovery is due to interest rates decreasing and general stability increase in the economy.

According to the Centre of Indian Trade Unions, there is a growing demand in Bulgaria for a highly skilled workforce. There is hope that this rising demand will increase the portion of the population living in the income bracket which sees them above the cost of living.

– Cornell Holland
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