Community Crowdfunding for Brazil to Help the Poor
Inequality in Brazil Rises and Poverty Reaches 23.3 Million People
RioTimes Aug. 2019
The survey also shows that the number of poor grew in the country and reached 23.3 million in 2017. These are people who live on less than R$233 (US$58) per month.
High unemployment, which still affects twelve million people, is the main cause of high inequality. The difficulty of finding a job is even more harmful to young people.
Wealth Distribution and Income Inequality
Brazil has a relatively high Gini index of 44.9 (world average of 33.8) which means the income of the rich is far greater than the income of the poor.
Some of the world’s poorest countries (Central African Republic) have some of the world’s highest Gini coefficients (61.3), while many of the wealthiest (Denmark) have some of the lowest (28.8).
Community Crowdfunding to Reduce Poverty
According to the most important of UN’s 17 sustainable development goals, Goal #1: End poverty in all its forms everywhere.
Poverty is a social problem. A lot of suggestions that increased community participation is the ultimate way to reduce poverty.
Community Crowdfunding based on donation
According to the CAF’s BRAZIL GIVING 2019,
- Seven in ten (70%) people report donating money in the past
- 200 Reais (US$ 47.22) was the typical amount donated in the past 12 months
- 52% donated to the Religious Organisations, 38% to the Children, and 31% helping the poor
Although Brazilians are very keen on making a donation, the amount is not sufficient to really help the community.
Community Crowdfunding based on Cashback
If the funding can be coming from cashback from merchants such as people eating out every day, buying out every day, it will be a good sustainable complement to the donation.
- As an example, GDP per capita for Brazil is about US$ 10,826 per year https://data.worldbank.org
- The assumed retail merchant network can cover all walks of life in Brazil.
- 5% cashback will equate to 5% x US$10,826 = US$540 per year
- Brazil has a population of over 200 million. Half of the people participate, 100 million users will generate cashback close to US$ 54 B annually.
- 5% cashback for wealth redistribution can also mean reducing the Gini Index by at least 5%.
Sustainable benefits such as :
- Savings and credit scheme for people to establish small microbusiness enterprises
- Young people venture funds
- Education funds
- Charity funds for poor people
- Subsidy on Health Care
- Invest in public buses
Based on 5% cashback, it will be US$540 per year, which is 10 times more than US$ 47.22 donation per year.
If you look at the 17 UN sustainable development goals, most of them are trying to apply the wishes and values of the wealthy countries to the poor countries such as gender equality, clean energy, responsible consumption & production, climate action, life on land, peace & justice.
Don’t count on their aids and build the community crowdfunding structure and help your own country.
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