Posts

Financial Literacy in Costa Rica to Reduce Poverty
Costa Rica is a country in Central America with a population of roughly 5 million. Although Costa Rica is the Central American country with the lowest poverty rate, that does not mean there is no cause for concern. The poverty rate in Costa Rica was 21% as of April 2020 and is only anticipated to worsen in the coming year due to the devastating economic impacts of COVID-19. Because of the global economic slowdown, inequality in Costa Rica can exacerbate as industries contract and unemployment rises.

Financial Literacy and Poverty

In the face of this global economic catastrophe, it is vital to educate the population on financial matters to prevent higher poverty rates. Personal financial literacy is an effective and fundamental tool used to lower national poverty rates. It also helps individuals better manage their finances and business dealings to maximize fiscal stability and growth.

Financial literacy programs have also assisted women in rising out of poverty. Women have a systemic relegation to domestic duties and patriarchal repression in many developing nations. As a result, they are a demographic that have historically been the most vulnerable to global poverty. Financial literacy programs teach women how to manage their own money in order to manage their own businesses. Women can also become more financially independent as opposed to being indebted to others in their family or industry.

Costa Rica’s Position

Costa Rica and Latin America as a region is considered one of the most unequal regions in the world according to the United Nations. One of the most effective strategies to reduce wealth inequality is by implementing education strategies that inhibit intergenerational wealth retention within families. Keeping money in the family and investing in future generations helps children escape the cycle of poverty. It also decreases their likelihood of experiencing marginalization and oppression in society, particularly among women. These tactics justify the use of financial education and programs about financial literacy in Costa Rica.

Solutions

One prominent organization focusing on education regarding financial literacy in Costa Rica is Coopenae. It began as a cooperative of educators in 1966 to give aid to schools and teachers. Now, Coopenae has grown into one of the country’s leading financial institutions to focus on service and education.

Individuals in Costa Rica have had very little education in financial instruments such as mutual funds, pensions and various other commonplace financial strategies. The ability of Costa Ricans to make better financial decisions is a simple matter of informing individuals about how they can access these instruments. Costa Ricans can then begin on the path out of poverty towards financial independence and prosperity. Coopenae plans to assist upwards of 12,000 people within the next two years. It aims at people from primarily low-income and disadvantaged communities.

 

Overall, financial literacy and education programs are extremely effective at reducing poverty rates. They are also effective at giving citizens the ability to properly manage their finances. They also open up the opportunity to start businesses or save for retirement. Therefore, financial literacy in Costa Rica is a smart and effective strategy to diminish poverty and foster a culture of financial responsibility and security.

 

Ian Hawthorne

Photo: Enchanting Costa Rica

homelessness in bangladeshBangladesh, a small country located in South Asia, is the eighth-most populous in the world, home to over 160 million people. It is no surprise that the majority of inhabitants reside in crowded cities; 21 million people live in the capital of Dhaka alone. With a vast population concentrated in such a narrow region, space and resources are in short supply. Almost one in four people live in poverty, and homelessness in Bangladesh is prominent; five million people live without housing and 124 million live in mud houses and slums.

Poverty and Homelessness

Poverty and homelessness have an intertwined relationship; circumstances of poverty — such as debt, lack of education, poor mental and physical health and disability — are underlying causes of homelessness.

The homeless population in Bangladesh, especially women abandoned by their spouses and too poor to provide for themselves, are exposed to many instances of violence, drug abuse and sexual assault. A study conducted in 2009 found that 83% of homeless female respondents were assaulted by their husbands, male police officers and other men in their vicinity. 69% of the male respondents used locally-available drugs, such as heroin, and two-thirds of injecting drug-users shared needles.

Progress

Despite these harsh realities, regional homelessness in Bangladesh has actually improved and poverty rates have dropped over the years. According to the Bangladesh Poverty Assessment conducted by the World Bank Group, the country halved poverty rates since 2000. More than 25 million people were lifted from these conditions.

Under the Bangladesh Awami League’s Ashrayan Project-2, a plan to help the homeless become economically independent, a total of 297,886 families have been rehabilitated. The first two phases of the scheme were successfully completed in 2010 and the final phase is expected to be completed by June 2022.

Rural regions in the country, namely Chittagong, Barisal and Sylhet, have seen most of this decline. They account for 90% of all poverty reduction that occurred from 2010 to 2016. Even despite the cyclones in Bangladesh that account for 70% of all storm surges in the world, World Bank Group President Jim Yong Kim says that “Bangladesh has adapted to climate threats, putting in place early warning systems, cyclone shelters, evacuation plans, coastal embankments and reforestation schemes.” The remoteness of these rural areas is the ideal grounds to invest in infrastructure and educate the populations there who live each day hand to mouth, wondering what may come tomorrow.

Homelessness Relief: Habitat for Humanity

When it comes to the fight against homelessness, non-governmental organizations such as Habitat for Humanity have provided Bangladeshi people with affordable housing, clean water and safe sanitation, training in construction technology and even disaster mitigation. In Dhaka, Habitat Bangladesh started its first urban project with the revamping of three slums. With help from Australia’s Department of Foreign Affairs and Trade, the organization helped 9,000 people through housing construction and renovations; this included the construction of water pumps, drainage systems and walkways, as well as bathhouses and community toilets.

Looking Toward the Future

As urbanization takes place, projections point towards more than half of Bangladesh’s poor households living in urban areas by 2030. But this requires adequate housing and transforming more slums into decently habitable homes and communities. The Bangladesh government’s draft of a National Urban Policy aims for sustainable urbanization. The policy visualizes a decentralized urban development; a place where the central and local governments, private sector, civil society and people all have important roles to play. The seventh Five Year Plan proposes allocating resources to address urbanization through the Annual Development Programme, though a feasible urbanization policy is still in the works.

Even further, educating and empowering the populations migrating to and residing in the cities, expanding the female labor workforce, fighting poverty and consistently innovating will help this nation achieve its goal of becoming an upper-middle-income nation by 2021. It is important to continue investing in projects and policies that are helping fight homelessness in Bangladesh; much progress has been made and much is yet to be done.

– Sarah Uddin
Photo: Pixabay

poverty in Uruguay
Situated on the Atlantic coast of South America is Uruguay, the second smallest country on the continent. With a population of more than 3.4 million and about 60% of them comprising the middle class, Uruguay stands as one of the most economically stable countries in the region. In fact, Uruguay has the lowest poverty rate in South America and is ranked high on such well-being indices as the Human Development Index. In building a secure place as a country, Uruguay has witnessed improvements as well as hindrances in various aspects of its society. Here are six facts about poverty in Uruguay.

6 Facts About Poverty in Uruguay

  1. Life is improving: The percentage of the population living on less than $3.20 per day in Uruguay significantly decreased from 2006 to 2017. While the rate peaked at 3.7% in 2006, it dropped to 0.4% by 2017. In accordance with the near eradication of extreme poverty, the moderate poverty in Uruguay also decreased from 32.5% in 2006 to 8.1% in 2018.

  2. Child labor: In Uruguay, child labor affects 8% of the 8 to 14 year olds. These children work long hours for low wages. In order to make meager earnings to financially support their families, many children in Uruguay forgo school education to work under unfavorable conditions. There has been little progress made to reduce child labor, as the percentage of children ages 5 to 14 in the workforce remained at a relatively constant rate of 6.1% in 2016. Nonetheless, certain organizations like the Telefónica Foundation have been working to raise awareness of and prevent child labor in Uruguay. One program under the organization is ProChild, which was established in 2000 and has developed since then to include a network of 10,000 participants. Another organization that helps children shift out of labor is the MIDES Youth Affairs Bureau. It employs various programs that keep children from entering the workforce at a young age by implementing education services and training.

  3. Higher quality of water sanitation: With the help of the World Bank Group, Obras Sanitarias del Estado (OSE) is now able to provide drinking water to 98% of Uruguayans. In previous years, there had been a chronic shortage of water supply and sanitation services in Uruguay due to the combined effect of low labor productivity and severe floods and droughts. However, with financial support from the World Bank Group, OSE has been able to significantly reduce water loss and continue its upward trajectory of water and sanitation quality.

  4. Decrease in unemployment: In 2002, Uruguay experienced an economic crisis that significantly impacted the country and created widespread unemployment, However, the unemployment rate decreased significantly over the next decade. It was estimated to be 7.6% in 2017 and remains low to this day. Still, the unemployment rate among the young generation has not fared well and continues to rise.

  5. Equitable income levels: There are still disproportionate rates of child- and afro-descendent-Uruguayan populations living below the national poverty. However, income levels in general have seen improvements. Among the poorest 40% of the population, average income levels have risen faster in comparison to the entire population’s average growth rates.

  6. Low gender inequality: The labor market participation ratio between female and male workers in Uruguay is the fourth highest in Latin America. Although the salary gap still exists, as in many of the OECD countries, there has been a steady flow of both female and male laborers into the workforce of Uruguay.

Multiple organizations have stepped up to address and improve the issue of poverty in Uruguay. One such organization is Caritas, which works to provide aid for the poor, from those who have been deprived of liberty to those who lack access to education. Especially through education, training and counseling, the organization has been able to help the most vulnerable groups in Uruguay to cope with their challenging situations.

Despite the recent progress made toward the issue of poverty in Uruguay, certain fundamental limitations in the funding of systems like infrastructure and education have constrained the maximum potential for growth. Certain groups like children and women remain more vulnerable to poverty. Nevertheless, the government has successfully implemented policies and efforts to close the gap between classes over the past years. Now, Uruguay stands on par with many other well-positioned countries around the world with relatively little aid from organizations.

Seunghee Han

Photo: Flickr

Innovation Capabilities
Innovation is essential for countries to develop, but there are countless barriers to innovation capabilities. Innovation capabilities are the parts of a production process that people cannot buy but are critical to supporting and driving innovation. Companies must learn and develop these elements. These elements include basic organizational skills, human resource management, planning routines and logistical abilities.

The Importance of Innovation

Without innovation, companies cannot evolve and be sustainable. This, in turn, impacts the progress of whole countries. A lack of innovation leads to people being unable to leverage their resources.

According to the World Bank, many developing countries suffer from low innovation. Low innovation includes the following:

  1. Weaker managerial and technological capabilities and the lack of ability to cultivate them.
  2. Weaker government capabilities.
  3. A general lack of physical, human and knowledge capital.
As a result, developing countries often have a difficult time progressing through innovation. In 1900, many now developed countries were in a similar state to developing countries today. These developed countries were able to capitalize on their innovation capabilities and successfully manage new technologies. This is what developing countries must now do to progress.

Innovative Examples

There are several examples of how developed countries have capitalized on innovation, compared to those still developing:

  1. Brazil was able to upgrade technologically after a slump in its iron industry.
  2. Japan took its textile technologies and modified them for the needs of different locales. It also diversified into machinery, chemicals, cables, metals and banking. This enabled Japan to establish its first leading manufacturing industry.
  3. The United States leveraged its copper resources. It pushed the frontiers of metallurgy and chemistry through a combination of high-level human capital and a network of universities and laboratories.

Developing countries, however, have had trouble reaching the same goals. While Norway was able to leverage its oil and gas deposits with its high-tech sector, Nigeria was not. Spain and Chile were unable to successfully identify and adopt new advances in mining and metallurgy for their copper industries. This eventually leads to these country’s selling out to foreign interests who could.

Production Capabilities: Management and Government

Two subsets of capabilities directly impact innovation including production and technology. Production includes management and government, while technology includes incentives and the environment.

Management focuses on the organization and maintenance of a company. Developing countries tend to have weaker managerial capabilities than developed countries. In these developing countries, managers tend to not have as much education. This greatly impacts their capabilities to properly identify and understand high-return on potential projects, take responsibility for long-term planning and implement new talent.

Limited competition can prop up inefficient companies. A lack of government support, however, makes it difficult for more efficient companies to effectively incentivize their workforce and upgrade their technologies.

A country’s productivity can illustrate an example of the effects of different management practices. There is a 25 percent difference in productivity between developing countries and those in the United States.

Governments organize and support how effectively companies run. In developing countries, governments generally do not have enough human resources or they are unable to efficiently organize policies. The organization, design and implementation of these policies help to rectify market or systemic failures and promote innovation.

These capabilities are the rationale and designing of a policy, efficacy of implementation, comprehensibility for the National Innovation System (NIS) and consistency. Most developing countries, however, are unable to meet these requirements.

Technology and Innovation: Organization and Environment

Governments and management often work to organize companies. It is the organization of the company itself, however, that allows it to implement and expand new technologies. Companies must incentivize workers so they can receive the tasks that make them the most productive. This also empowers workers to brainstorm new ideas and improvements for products or systems.

This type of organization creates an innovation-friendly environment for the company. These incentives show positive influences on creativity and innovation in workers and the company as a whole.

An example of innovation at work is the Aquafresh company in Ghana. It dealt with fierce competition from Asia, eventually discovering that the best way to confront this competition was not to address it at all. Aquafresh started as a clothing company but later reinvented itself, turning to soft drinks. This was possible due to its innovation-friendly environment and organization. This environment eased the transition and sustained them through the change.

Solutions for the Barriers to Innovation Capabilities

Adopting better managerial and organizational practices can push companies to innovate in products, processes and quality. This can also inspire companies to create innovative projects, which can lead to new products and technologies.

Access to human, knowledge and technological capabilities increases a developing country’s innovation potential. This renders foreign aid less important as the countries learn to become self-sustainable.

Companies in developing countries need help with overcoming the barriers to innovation capabilities. If the National Innovation System could focus on supporting companies with better capabilities, investing in higher-level human capital and management and the development of capable governments, a larger innovation system could come into fruition for developing countries. This, in turn, would benefit the entire world.

– Nyssa Jordan
Photo: Flickr

Roads for Water Benefits Infrastructure
Infrastructure is the physical and organizational structures necessary for the operation of a society or enterprise. This includes buildings, bridges and roadways. Roadways are a significant factor in ending poverty. Without safe roads, children are unable to go to school, employees cannot get to work safely and supplies like food and water cannot reach remote areas where poverty is most prevalent. The lack of clear infrastructure creates a tremendous economic and social cost. In fact, over 1.1 billion people are without electricity across the globe, which is 16 percent of the world’s population. Additionally, almost 663 million people across the globe lack access to clean water and 2.4 billion people have no sanitation. Even more astounding is that one-third of the world’s population does not have access to all-weather roads. Roads for Water benefits infrastructure by improving road maintenance costs while providing water that people can use.

Roads for Water

Roads for Water is part of a larger association of organizations aiming to promote road water harvesting. The consortium mainly focuses efforts in areas with severe poverty including Africa, the Middle East and parts of South America. Road water harvesting involves using roads as major instruments of water management and sustainability. Further, the roads are integral to transferring water across long distances to reach rural areas and others with no access to safe drinking water. About 20 percent of land surface across the globe is within one kilometer of a road. These are generally the most populous areas with easy access to water sources. Often, roads can alter the ebb and flow of water through corrosion and sedimentation. Harvesting this water and relocating it is better for the environment and for those who require access to potable water sources.

Benefits of Road Water Harvesting

In countries stricken with poverty, people typically forget to maintain infrastructures, such as failing bridges, dilapidated buildings and damaged roadways, or they are low on the list of priorities. In addition, the damage makes it difficult to access water sources. Roads for Water manages water with infrastructure which leads to three ways that Roads for Water benefits infrastructure:

  1. Reduced costs associated with maintaining roadways. Building resilient roadways that are long-lasting with minimal maintenance is beneficial because it is more cost-efficient. The program also invests time and effort into maintaining roads in order to make road water harvesting more sustainable.
  2. Less destruction to landscape and rural farmlands. People build roadways more efficiently and in more convenient locations without disrupting farmlands and vast landscapes. The roads coincide with access to towns and major landmarks in order to make water more accessible for larger groups of people. Harvesting does minimal damage to the landscape; whereas other methods, like natural erosion and sedimentation, are more damaging because they destroy larger areas of ground.
  3. Water that people harvest through the road is more productive and improves consumptive water usage. Road harvesting focuses efforts on gaining water through and under roadways. People build the roads in a manner that allows for easy accessibility for tools, which creates less road damage when strategies are already in place. People can use water for multiple purposes if they have more access to it. This expands from cleaning and drinking to hygiene and consumer products.

Countries that Roads for Water Has Impacted

In Malawi, there is a high potential for harvesting water from road networks. However, the country has not yet fully established these networks due to weather conditions and conflict. The government has fortunately acknowledged the need for this program and has initiated the Integrated Catchment Management as a way to address water resource management issues. With efforts from the government, Malawi has a much higher chance of accomplishing its water harvesting goals across the country.

In addition, Nepal has strict guidelines for who can participate in its road maintenance groups. The District Road Core Network (DRCN) is the group of main rural roads that provide access to Village Development Committees (VDCs), as well as being responsible for the sustainability and maintenance of the country’s District Development Committee (DDC). There is a vast amount of land available for road building and the Road Maintenance Groups (RMGs) are efficient teams that effectively carry out the process and routine maintenance of the DRCN, which includes making sure the roads are all-weather and stay open year-round. With the support of the Nepali government, RMGs can keep up with the roadway systems, making water more accessible to all areas of the country.

How to Help

Finally, agencies such as The Rockefeller Foundation, USAID, World Bank Group and others support Roads for Water. Contributions and fieldwork make up most of the models’ message. Find out more about how to become involved here.

Kaylee Seddio
Photo: Flickr

Poverty in Big DataIt is impossible to remedy the causes of poverty without enough data to make accurate assessments for formulating solutions. There is little infrastructure in fragile countries and developing nations, making data collection difficult. Gaps in data can exist that are a decade wide. Infrequent studies conducted with only a single method of surveyal are inadequate. If there are not multiple methods of gathering data, the data will be skewed, because there will be no means of comparison for bias.

New methods have been developed to gather data remotely. These methods rely on finding signs of poverty in big data. Big data is a term for the massive amounts of data collected by computers. Poverty in big data can be detected by using self-learning artificial intelligence known as machine learning programs.

Cell Phone Data

While smartphones often remain out of reach for the impoverished, basic cell phones are a staple of life even for those living in developing nations. In fact, the greater part of sub-Saharan African countries own mobile phones. For example, in Tanzania, the country with the lowest reported number of phones, 75 percent of the population still owns a mobile device. In South Africa, the country with the highest reported number of phones, only nine percent of the population lives without a mobile phone. Another study on Rwandan households also found that mobile phones were more common than televisions or computers, ubiquitous items to the American household.
Because of these factors, there is an abundance of cell phone data (CPD) even in regions that typically lack data on poverty. According to a study done by the World Bank Group in Guatemala, CPD interpreted through machine learning can yield sufficiently accurate data of urban areas. CPD can be used to determine the location of a person’s home and how far they typically travel. With this data, researchers can see who is likely to travel to a location and who has a means of transportation for getting there.

Satellite Imagery

Civil unrest and harsh conditions can make it dangerous to gather data on poverty in some regions. These factors can disincentive data collection and cause years of gaps in survey data. A new remote method of analyzing public data on physical regions has helped demystify treacherous terrain. Satellite images of the Earth’s terrain, also known as Earth observations, display signals of wealth in a region. By measuring the luminosity of man-made light at night, researchers can make estimates of the economic status of an area. A proven correlation between illuminated areas, electric power consumption, and a country’s GDP justify these estimates. This is a fast and efficient method of obtaining data from a country that has seen natural disasters or civil war.

Social Media

The digital footprint of social media users, or lack thereof, can be useful in estimating data on the development of areas. According to the Pew Research Center, 53 percent of those in emerging nations use social media. Internet use correlates with the GDP per capita of a country, so the rising numbers of users are promising. However, sub-Saharan Africa and India are falling behind the rest of the world.

Finding poverty in big data through machine learning has proven to be informative and safe for researchers. The relatively unobtrusive nature of conducting studies in this manner makes sure that locals do not feel disturbed or angered. Remote and impersonal studies such as these also avoid issues such as under-reported poverty in illiterate households and over-reported poverty from those asked to recall their consumption.

– Nicholas Pirhalla
Photo: Flickr

Facts About Life Expectancy in Senegal

The Republic of Senegal is a country on the West African coast bordered by Mauritania, Mali, Gambia and Guinea-Bissau. Around 46.7 percent of Senegal’s 15.85 million residents live in poverty. Today, life expectancy at birth in Senegal is 67.45 years, representing a significant improvement from 39.24 years in 1970 and 59.7 years in 2000. Many factors contribute to a country’s life expectancy rate including the quality and access to health care, employment, income, education, clean water, hygiene, nutrition, lifestyle and crime rates. Keep reading to learn more about the top eight facts about life expectancy in Senegal.

8 Facts About Life Expectancy in Senegal

  1. Despite decades of political stability and economic growth, Senegal is ranked 164th out of 189 countries in terms of human development. Poverty, while decreasing, remains high with 54.4 percent of the population experiencing multidimensional poverty. The World Bank funds programs in Senegal to reduce poverty and increase human development. This work includes the Stormwater Management and Climate Change Adaptation project which delivered piped water access for 206,000 people and improved sanitation services for 82,000 others. Additionally, the West Africa Agricultural Productivity Program helps cultivate 14 climate-smart crops in the area.
  2. Senegal’s unemployment rate has substantially decreased from 10.54 percent in 2010 to 6.46 percent in 2018. This is a positive trend; however, 63.2 percent of workers remain in poverty at $3.10 per day showing that employment does not always guarantee financial stability. To help the most vulnerable 300,000 households, Senegal has established a national social safety net program to help the extremely poor afford education, food, medical assistance and more.
  3. The maternal mortality rate continues to decrease each year in Senegal. In 2015, there were 315 maternal deaths per 100,000 live births compared to 540 deaths per 100,000 live births in 1990. Maternal health has improved thanks to the efforts of many NGOs as well as the national government. Of note, USAID has spearheaded community health programs and launched 1,652 community surveillance committees that provide personalized follow-up care to pregnant women and newborns. In 2015, trained community health workers provided vital care to 18,336 babies and conducted postnatal visits for 54,530 mothers.
  4. From 2007 to 2017, neonatal disorder deaths decreased by 20.7 percent. This is great progress, however, neonatal disorder deaths are still the number one cause of death for children under the age of 5 in Senegal. The World Health Organization (WHO) provides technical and financial support to establish community-based newborn care, including Kangaroo Mother Care programs. This low-cost and low-tech intervention has reduced the risk of death for preterm and low-birth-weight babies by 40 percent and illness by 60 percent. With financial help from UNICEF, 116 health workers have been trained in 22 health centers and seven hospitals. The long-term goal is to have Kangaroo Care introduced to 1,000 health centers across Senegal.
  5. Senegal has been lauded as an African leader in the fight against malnutrition. Notably, from 2000 to 2016, undernutrition declined by 56 percent. Improvements in the health sector, making crops more nutrition-sensitive and helping increase crop yields have been major contributors to recent nutrition success. 
  6. Despite progress, hunger is still a major issue in northern Senegal. Successive droughts have left over a quarter of a million people food insecure. In the district of Podor, rains have decreased by 66 percent from 2016 to 2017. Action Against Hunger is working to keep cattle, which is the main sustenance source for thousands of shepherds, from dying in the drought by funding new drinking troughs. This will benefit 800 families in Podor. Action Against Hunger also covers monthly basic food expenses for 2,150 vulnerable households to prevent further increases in acute malnutrition.
  7. There is a high risk of waterborne diseases in Senegal. Diarrheal diseases are the third leading cause of death. The Senegalese Ministry of Health has recently adopted the WHO diarrhea treatment policy of zinc supplementation and improved oral rehydration therapy. This is a life-saving policy that is taking effect around the country.
  8. Around 41 percent of children aged 6-11 in Senegal are not in school. The largest percentages of out-of-school children are the poorest quintile and rural areas. To increase school enrollment, the government and USAID are making efforts to increase access to school facilities in rural areas and support poorer families with cash transfers through the social safety net. USAID is working to ensure that all Senegalese children, especially girls and those in vulnerable situations, receive 10 years of quality education. The agency has built schools, supported teacher training, increased supplies of books and access to the internet and increased opportunities for out-of-school young people. Since 2007, 46 middle schools and 30 water points have been built and equipped.

These eight facts about life expectancy in Senegal have shown that the combined efforts of nonprofits and the Government of Senegal are making real progress on many fronts that contribute to life expectancy. These efforts must continue and intensify to reduce poverty and increase life expectancy in Senegal.

– Camryn Lemke
Photo: Flickr

Renewable Energy in Developing CountriesSome think that the majority of zero-carbon energy generators are being built in European countries such as Switzerland or Norway. But that is quite a stretch from reality. In 2018, the majority of the world’s new renewable energy capacities were built in developing countries. While wealthier developed countries added only 63 gigawatts of zero-carbon of energy, during the same time period developing nations added 114. Despite encountering numerous sizable challenges, developing countries are now leading the way in terms of the world’s clean energy transformation.

Renewable Energy in Developing Countries: Current Undertakings

  • Costa Rica: The most impressive energy transition has likely been experienced by Costa Rica. In May 2019, the small country was able to hit a huge milestone of generating 99.99 percent of its energy from renewable sources including wind, solar, biomass and geothermal. Throughout the past decade, the country has seen a constant rising slope in its alternative energy generation despite adverse conditions caused by changing weather conditions and the El Niño phenomenon. The nation aims to be completely carbon neutral by 2021.
  • China: For the most part, the most popular sector of renewable energy in developing countries has come from the sun. With the cost of solar power decreasing by roughly 80 percent over the past decade, many developing countries are building both centralized and decentralized solar power systems. Some of the most ambitious renewable energy projects in developing countries are currently occurring in China, which ranks first globally for renewable energy having produced 1.4 GWh of electricity in 2019 from alternative sources. The country also owns about a third of the total renewable energy patents worldwide and is currently spending three times the amount the U.S. is in renewable energy investment, setting it up to become even more of a green superpower in the future. A combination of these factors has led to solar power becoming cheaper than grid electricity in China, which has further driven the demand and investment levels in it.
  • Kenya and the Ivory Coast: Most decentralized renewable energy projects in developing countries are currently being built with DIY kits which can easily be purchased from the internet. For instance, Lumos, a Dutch solar company, began selling solar kits in the Ivory Coast in 2017. Within a year, more than  73,000 units have been installed — consisting of a solar panel, power sockets, battery, mobile phone adapter and LED lightbulbs. Metered pay-as-you-use solar devices and generators have also become quite popular with M-KOPA, a start-up launched in 2012 in Kenya, leading the pack. For as little as a dollar per month, families can access solar energy. The company now has more than 600,000 customers across three countries and estimates on its website that it is bringing solar power to 500 new households per day.

Effects

The effects of developing countries transitioning and installing renewable energy have been overwhelmingly positive especially for remote communities. Currently, an estimated 1.3 billion people do not have access to grid electricity, forcing them to pay absurd amounts of money for unclean lighting and heat such as kerosene oil and coal stoves. However, micro-hydro systems and solar panels have been able to combat this by being self-sufficient energy off-grid sources. For example, in Kenya, the global leader in solar panels per capita, more and more citizens are choosing to install private solar systems rather than connecting to the country’s highly unreliable electric grid.

Additionally, jobs are often created in lieu of the initiation of zero-carbon energy producers. As an illustration, when Delhi, India built a new waste-to-energy plant in 2017 that burned garbage as fuel, it immediately hired seven waste-pickers and provided job training and employment to roughly 200 women.

Challenges

Currently, the greatest challenge facing the implementation of renewable energy in developing countries is reliable energy storage. Without good energy storage, communities become dependent on the natural conditions for their electricity and are subject to frequent blackouts.

Another anticipated challenge is meeting the demand of critical metals and minerals, such as nickel, lithium and manganese, to these batteries in a sustainable and ethical manner. As the demand for these materials is expected to grow tenfold by 2050 and large deposits of them are found on African soil, the extracting industry must be regulated in a way so that the economic benefits are enjoyed by the entire locality, and that labor conditions within the supply chains are correctly regulated and addressed.

Future Directions

To combat the lack of reliable energy storage in third world countries, in 2018 the World Bank committed $1 billion to help accelerate investment in both the development and implementation of battery storage. Individual countries have also pledged varying amounts towards the development of alternative energy with China leading the way with an ambitious pledge to spend at least $360 billion on renewables by 2020.

The share of renewable energies in the global energy market is expected to grow up to 20 percent by 2023, and developing countries are expected to play a large role in this growth. The usage of bioenergy, energy generated from biomass fuels, is also expected to decrease as solar and hydropower become more efficient.

Conclusively, the future of renewable energy in developing countries appears quite promising. Although it would be too optimistic to not acknowledge developmental challenges such as efficient energy storage, through ingenious thinking and adventitious ideas, developing countries are likely to continue to be on the forefront of achieving the goal of carbon-neutral global energy consumption.

– Linda Yan
Photo: Flickr

female entrepreneursIn countries like the United States, female entrepreneurs account for 46.8 percent of the total businesses. The majority of these businesses are classified as small businesses, having fewer than 500 employees, but they generate almost $500 billion in payroll annually. This situation is worse in developing countries since women’s rights are not fully achieved and the opportunities for women to develop their own businesses are much more difficult to come by.

The reasons for Fewer Female Entrepreneurs

Why are there still fewer amounts of businesswomen than men not just in developing but in developed countries as well? Although developing countries may advocate more for women’s economic development, little is actually being done to provide more opportunities to change it. Since women’s failure rates are not that significantly different from those of men, researchers believe that gender bias is at fault and, thus, inhibiting the growth of women in the economy.

There is evidence that suggests that there are many reasons for the differences in the attitude about gender in business. One reason is that women and men often have different socioeconomic characteristics. If economists were to reform education, wealth, family and work status, those differences would disappear.

The Obstacles for Female Entrepreneurs

Africa remains one of the most successful leaders for efforts regarding female entrepreneurs. But, even the most successful countries still lack leadership, capital and professionalism, not to mention the inability to find affordable solutions in regard to childcare.

Countries like Japan have taken these shortcomings and transformed them into positive aspects of the economy. Womenomics is the idea that the advancement of women and economic development are necessarily linked. This philosophy is becoming widespread among developing nations. In Japan, these sorts of reformations can be credited to Prime Minister Shinzo Abe. Since taking office, Abe has generated a larger female labor force rate than that of the United States.

Some other countries have also made several reformations propelling womenomics. Jordan has increased women’s enrollment in schools by 37 percent. Turning these rates into economic success, however, still remains a challenge. Many studies suggest that economic growth for women needs to be viewed as desirable and attainable for the majority of society.

Female entrepreneurs also struggle with the duality of a society that places more value on a familial lifestyle. For example, a woman may own a business, but her time at work is often limited by her duties at home. Data in developing countries assert that many women leave the business lifestyle to return to familial duties.

A study regarding the results of holding executive positions for women in Norway revealed that the majority of people believe there should be established quotas to include women in management in companies. The results of the pole were 74 percent in favor of those quotas. Later studies showed that as women in the workplace reach a certain age, the stigma associated with their work duties do too.

Curbing the Stigma

Shifting the thought process among thousands of different demographic structures isn’t easy, but it is clear that the majority of the world needs higher female entrepreneurial participation rates. Reforming education, wealth, family and work status are not projects that take only months to complete, rather they need a comprehensive and flexible government that is willing to take on the challenge for years to come.

There are several ways to start thinking about reforming the factors for female entrepreneurs. Creating workshops to propel female economic empowerment is a start. The United Nations Capital Development Fund (UNCDF) is doing just that. They are working to find projects for investment as well as provide training to work under the Women’s Economic Empowerment Index (WEEI).

By ending the stigma associated duties deemed appropriate for females, both developing and thriving countries can further increase the chances of positive economic outcomes. Education and awareness programs are important components to overcoming these gender-related stigmas.

Financial Inclusion

Governmental structure and large economic aid can advance female economic empowerment too. We’ve known for a long time that access to financial services can be a powerful driver to help people lift themselves out of poverty. With a concerted push from governments, the private sector, and multilateral institutions including the World Bank Group, we believe we can close this gap,” said World Bank President Jim Yong Kim in a meeting attempting to accelerate the growth of women’s empowerment.

The World Bank also states that simple financial education can greatly increase the chances of creating female entrepreneurs. There are so many aspects that can improve. For example, according to the World Bank, fewer than 10 percent of women in developing countries own a bank account. Access to financial institutions is an essential part of a successful business, which is why the organization started the Women Entrepreneurs Finance Initiative. This initiative will provide financing opportunities for women who own businesses in developing countries.

Donations from the World Bank Group, education and female empowerment workshops to end stigmas are some of the best ways in which the women can become involved and empowered in the workforce. It won’t happen quickly, but when it does, the economic benefits will surpass previous stigmas surrounding women in business.

– Logan Moore

Photo: Flickr

Jim Yong Kim and the World Bank's Goal to End Poverty
Since 2012 (and now in his second term), physician and anthropologist Jim Yong Kim has served as the president of the World Bank Group. After assuming leadership of the World Bank, he took up two goals: “to end extreme poverty by 2030; and to boost shared prosperity, focusing on the bottom 40 percent of the population in developing countries.” 
His career has revolved around health, education and improving the lives of the poor.

Milken Institute and Global Poverty

On May 19, Jim Yong Kim spoke at the Milken Institute Global Conference which focuses on “advancing collaborative solutions that widen access to capital, create jobs and improve health.” 

The Milken Institute hosts its Global Conference from April 29 to May 2 in Los Angeles, California, and possesses various centers focused on topics such as the Center for Financial Markets, Center for the Future of Aging, and Center for Jobs and Human Capital. One of the organization’s foci is children — 150 million children around the world are affected by poor nutrition, undersized growth, and cognitive impairment, and live primarily in South Asia and African countries.

According to VOA, if leaders don’t focus on investing in their people, then “many, many, many people will find themselves undereducated and without the skills to be able to compete in the economy of the future and so many countries are going to go down the path of fragility, conflict, violence, and then of course, extremism and migration.”

Business, Health and Development

In the talk, Jim Yong Kim stated there should be a business-like mindset when talking about health and development of individual; in fact, Kim has made it his mission to make this world a better place by working towards a common goal of reducing poverty.

According to Forbes, Kim wants to “reduce extreme poverty levels to below 3 percent of global people, and grow the incomes of the bottom 40 percent of each country.” His organization also lends out cash — almost $59 billion a year.

Before Kim assumed his position as president of the World Bank, he was president at Dartmouth College and “from 2003 to 2005, as director of the World Health Organization’s HIV/AIDS department, he led the “3 by 5” initiative, the first-ever global goal for AIDS treatment, which greatly to expand access to antiretroviral medication in developing countries.” 

From A Ted Talk to Today

In a Ted Talk in April of 2017, Kim spoke about going to Haiti when everyone told him that the best thing to do was to focus on vaccination and possibly a feeding program. Since Kim’s parents had emigrated from Korea to flee the Korean war, though, Kim had a different perspective — what he saw in Haiti was what he saw in parents: to give their children the opportunity that they didn’t have.

In the Ted Talk, he goes on to say, “the Haitians wanted a hospital. They wanted schools. They wanted to provide their children with the opportunities that they’d been hearing about from others, relatives, for example, who had gone to the United States. They wanted the same kinds of opportunities as my parents did.”

In conclusion, Jim Yong Kim is a accredited president of the World Bank Group, and a charitable person who traveled to Haiti to help build hospitals and schools, and give children increased opportunities. All in all, if more people follow Kim’s example, the world will be a stronger and more sustainable place. 

– Valeria Flores
Photo: Flickr