Displaying items by tag: poverty

Cuba has had one of its toughest weeks in years, with a nationwide blackout leaving its ten million citizens powerless for days, alongside devastation from Hurricane Oscar. For many, energy shortages have become routine, but this prolonged blackout forced people to resort to firewood when regular gas supplies ran out. The government has blamed US sanctions for hampering infrastructure upgrades, while critics argue that mismanagement has directed funds to tourism instead of energy. President Miguel Diaz-Canel warned against protests, no doubt wishing to avoid a repetition of the widespread demonstrations over similar issues in 2021. The government suspended all non-essential work and schools for a week, to avoid another collapse on the grid. Electricity generation now meets only 60-70% of demand, and there has been a 25% production drop since 2019. Hurricane Oscar’s destruction further underscored the nation’s vulnerability, leaving Cubans braced for more challenges as the crisis continues.

Two Scottish Labour MPs have surprised their leader Anas Sarwar by voting against the party line in support of a non-binding motion urging the UK government to reverse cuts to the winter fuel payment. The motion, proposed by first minister John Swinney, was passed by a large majority, with members of all other parties, including the Scottish Conservatives, backing it. Making this payment dependent on means testing, part of a broader debate about austerity measures inherited from the Conservative government, is opposed by the SNP. Sarwar defended Labour’s position, arguing that the Chancellor did not want to cut the payment but was constrained by the economic challenges left by the previous administration. However, critics have warned that the cuts would force many elderly citizens to choose between heating and eating this winter.

Millions of pensioners in the UK are facing a challenging winter after the Government voted to cut automatic winter fuel payments to pensioners. The decision, supported by nearly 400 Labour MPs, addresses a £22 billion funding gap. Rachel Reeves defended the move, assuring that the payment will still be available to those receiving Pension Credit. However, many pensioners, including Francis Moore, expressed shock and disappointment, warning that this will lead to a bleak winter for the elderly. Moore highlighted the severe impact of rising energy costs on pensioners who already struggle to make ends meet. He criticised the Government for not doing more to support elderly citizens, stating that warmth is essential for survival. Pensioners will have to budget carefully for basic necessities while rising electricity bills threaten to worsen their financial hardship. There is widespread criticism of the Government’s handling of pensioner welfare; many are accusing it of neglecting a vulnerable generation.

Inflation in Argentina has slowed for the fourth consecutive month, despite an annual rate nearing 300%. The monthly inflation rate rose by 8.8% in April, down from 11% in March. This is seen as a victory for Javier Milei; when he became president in December, monthly inflation was over 25%. His administration has implemented strict austerity measures to stabilise the economy, including slashing public spending, cutting 50,000 public jobs, suspending new public works contracts, and removing fuel and transport subsidies. These measures have been praised by investors and the International Monetary Fund (IMF), which announced an $800 million loan for Argentina. However, some experts argue that the falling inflation is due to a significant decline in private spending, as the poor and working classes are severely impacted. Poverty levels are nearing 50%, with a drop in economic activity and consumption. Critics say Milei's policies have disproportionately affected vulnerable populations. Despite decreasing inflation, Argentina's GDP is expected to shrink by 2.8% this year, indicating a painful recession.

Loan sharks say business has never been so good, but there are huge risks attached to this type of borrowing. One loan shark calls himself an ‘enforcer’- referring to what happens if payments are missed. ‘The car is damaged, house windows and doors are pulled out, and even people get badly beaten.’ He says beatings are rare but admits to breaking legs, smashing teeth or eye sockets, leaving people hospitalised. Nearly all his customers are regulars, paying off debts within two or three months - then they are back a few weeks later. With high inflation demand has soared. He now hears from single mums and families needing smaller amounts of £500 to £1,000 to pay for gas or electricity or for groceries. Interest rates up to 50%, or ‘double bubble’ terms, where the original loan is doubled each month, are often applied. Most clients would accept any terms, out of desperation. Borrowers are usually lower-waged, full-time workers.

Christians Against Poverty (CAP) supports people in debt and poverty. In recent years Buy Now Pay Later (BNPL) has emerged and become a popular way of making payments online. Consequently CAP welcomes the Financial Conduct Authority’s (FCA) latest consultation to bring BNPL into its regulatory oversight,and is broadly in agreement with all the FCA’s suggestions for exemption areas Including invoicing, trade credit, employer loans and social housing landlord loans. CAP also wants the FCA to ensure that people are fully informed of the risks of using these products, such as late fees. It welcomes pre-contractual agreements for consumers to sign so that they have more time to think about their decisions. Whilst BNPL products are interest-free, CAP wants the FCA to monitor market changes. If consumers are dependent on BNPL to smooth cash flow when fees or charges are applied it could be harmful.

London's mayor Sadiq Khan is launching a £130m scheme in September to give every primary school pupil free school meals during the 2023-24 academic year. That’s 270,000 children, saving families £440 per child. Mr Khan, who received free school meals himself, said, ‘The cost of living crisis means families are in desperate need of additional support. I have repeatedly urged the government to provide free school meals to help already stretched families, but they have simply failed to act.’ Newham, Islington, Southwark and Tower Hamlets councils will also offer free school meals; last month Westminster City Council also began providing free school meals for primary pupils. Charities and teaching unions have welcomed the plans, but some have urged the Government to step up wider support. The Children's Food Campaign said healthy school food for all must not just be an emergency measure. It should be part of a fully inclusive education system for the long term.

In 2019, Namibia passed legislation saying that women who, out of desperation, took the drastic step of abandoning their child, would no longer be prosecuted. Abandoned babies were dying. Safe places where an infant could be left were established, but there is still not enough awareness of the legal changes. Linda left her baby in a baby-saver box - a drawer built into a wall of a compound in Swakopmund that has a mattress and a blanket inside. There is also a letter. ‘Dearest mommy, please know that we do not judge you,’ reads the reassuring note. ‘We cannot begin to understand the circumstances that have brought you here.’ Linda knows her baby is safe. But despite the change in the law, babies continue to be abandoned in unsafe places. Between 2018 and 2022, 140 babies were abandoned - far more than those left in safe places.

The president of the International Fund for Agricultural Development has called for global leaders to invest more in rural communities and small-scale farmers, who produce one-third of the world’s food. The representatives of 177 states were asked, ‘Think how much more rural people could contribute to global food security, peace and stability if they had the resources to improve their farms and prosper, not just survive.’ Barbados’s prime minister said, ‘It is time for the world to recognise that we need to invest right now in securing food and nutrition for citizens across the planet, especially poor people, and invest in smallholder agriculture and diversified local production. Investing in food systems transformation will end the world’s hunger and nutrition crisis.’ Climate change, conflict and global inflation are creating a food crisis of epic proportions, as progress in achieving Zero Hunger moves backwards. Over one in ten people are hungry, and over 3 billion cannot afford a healthy diet.

A cholera outbreak in Malawi began in March 2022, but fatalities doubled last month: 1,093 deaths have been registered. Malawi is one of the poorest nations in the world. In impoverished communities with little access to clean water, a deadly disease like cholera spreads quickly. The high fatality rate could be due to long distances between health facilities and affected communities, resulting in delayed access to rehydration treatment. Currently there are 600 new cases per day. Malawi usually counts a few hundred cholera patients per year. Pray for the Malawi Red Cross Society providing lifesaving treatment at the community level with oral rehydration therapy. Volunteers ensure that water supplies are safe and that sanitation facilities are working. They also go door-to-door, raising awareness on preventing the disease from spreading. Pray for more agencies and volunteers, to deliver all that is needed to halt the spread.