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Manzini, Swaziland (IRIN) – Erratic pension payments, a rising cost of living and changing social circumstances are leaving Swaziland’s elderly with no choice but to fend for themselves and adjust to living alone. This is unprecedented in a country where an extended family system traditionally provided a social safety-net and companionship.

“I thank my God that I am still alive at 72, but I never thought I could be so lonely. In the old days there was never ‘alone’, but many elderly are living by themselves today, like me. What happened?” asked Amos Ngwenya, a farmer in the central Manzini region.

“You were in a Swazi family and so you were taken care of, from cradle to grave. It was a simple life and government didn’t have to assist anyone. Now, if I don’t get my old age pension I might go hungry if I do not use my imagination,” Lucy Simelane, 65, told IRIN.

Swaziland’s desperate financial situation caused suspension of the US$21 pension pay-out in the second quarter of 2011, in favor of a grant to cover the school fees of orphans and vulnerable children (OVC). About 5 percent of Swaziland’s approximately one million people are 60 years old or older and eligible for a government pension. Roughly two-thirds of Swazis live below the poverty line.

Sub-Saharan Africa’s last absolute monarch, King Mswati III, has turned to South Africa in the hope of securing a $1.47 billion loan to save the country from collapse after being rebuffed by the International Monetary Fund (IMF) and the World Bank, according to media reports. The country does not have sufficient funds to pay its public servants in June.

Coping strategies

Simelane, the youngest of her late husband’s three wives, cares for her ailing HIV-positive 25-year-old son, who has tuberculosis. “Life is hard taking care of [my son] by myself, and I worry about getting enough for us to eat,” she said.

Most days she scours the nearby hillsides with neighbors, searching for seeds, berries and wild spinach to supplement the staple food, maize-meal – coping strategies that in the past were adopted only in times of drought or economic distress.

“The older of our people are adopting ‘coping mechanisms’ like never before. It’s not just the economic downturn that makes this necessary, it is because Swazi elderly are alone now as never before,” Mkhuluza Zwane, the head of Umtfunti Wemaswazi, an advocacy group for the elderly, told IRIN.

But such coping methods are temporary solutions, Zwane said, as they rely on seasons. Simelane, like others in the neighborhood, is using water from a communal borehole to grow vegetables.

“Swazis growing vegetables is a new thing. We have water to do this now. I can even sell extra vegetables and make some money. Winter is good for growing because we never get frost, and with the sunshine the cabbage still grows. But the soil is not good and the cabbage is not big,” she said.

Amos Ngwenya, an octogenarian and a widower, is fit enough to cultivate his fields, but allows his neighbors to till the land in exchange for some sacks of maize at the end of the season.

Once employed by government as a local agriculture advisor, he has a small pension that meets most of his needs and he resides rent-free on communal Swazi Nation Land, where 70 percent of Swazis live under the jurisdiction of traditional chiefs.

“I feel sorry for old people who only have that pension to live on because it is so little, but even a little bit helps. You must remember I grew up when there were no pensions for anyone, and somehow we coped. We must remember those old days and borrow those lessons to survive as old people today,” he said.

The multi-generational family farm that was a fixture when he was born – when few Swazis traveled more than 80 kilometers or so from their birthplace – has been replaced by the effects of urbanization, with children and relatives scattered over long distances.

Although Swaziland has the world’s highest HIV prevalence rates – 26.1 percent of people aged 15-49 are living with the virus, which has reduced average life expectancy to 39 years – more than 70 percent of the population are not infected and will probably live into their seventies.

Self-worth

“It’s ironic that in Swaziland of all places – because we are a very gregarious people and a family-oriented society – you find more older people living in isolation. This is not only dispiriting for them but is unhealthy and dangerous. The elderly are prey to criminals and they face discrimination,” said Angelina Dube, a social worker in the Manzini area.

Simelane laments that she is not part of her grandchildren’s lives. “They live far away. Some of my grandchildren live in town, where my daughter works, and a stranger looks after them during the day,” she said.

“The absence of the responsibility of taking care of grandchildren is a terrible loss for many elderly women. They have no substitute activity, and their sense of self-worth is threatened by the absence of what Swazi grannies always used to do,” Dube said.

“It is disturbing how many young people make fun of the elderly nowadays. It didn’t used to be that way. Swazi society was based on respect of the elders, and we worshiped our ancestors.”

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– Provided by Integrated Regional Information Networks.

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Dhaka, Bangladesh (AHN) – Bangladesh, the world’s poorest Muslim majority country, unveiled a $22 billion deficit budget high on defense expenditures and low in farm spending. The government projects revenue income at $16.01 billion in the coming fiscal year, up from nearly $13 billion. The budget was placed in Parliament on Thursday amidst a boycott by the main opposition Bangladesh Nationalists Party.

The overall agriculture budget decreased more than 12 percent while defense spending increased almost 29 percent, the largest rise among major sectors. Instead of investing in human development and infrastructure, money will go towards increasing Bangladesh’s military firepower and salaries of defense personnel.

Finance Minister Abul Maal Abdul Muhith has called for higher allocation in the energy and farming sectors to perk up economic growth. In a move to end a serious of power outage, the power production saw an increase of almost 20 percent as the finance minister outlined a plan to increase power generation by almost three times adding 7,800 megawatts to the national grid by 2013.

The minister set a 7.0 percent growth target for the gross domestic product (GDP) starting on July 1.

The budget holds down the rising inflation, principally blamed on price spirals and depreciation of the local currency, he explained.

Economic think-tank Unnayan Onneshan, in a quick assessment on Thursday said the government might face extraordinary challenge to reach the growth target as quoted in the budget document of fiscal 20111-12 due to lack of supporting base in the overall economy of Bangladesh.

The fiscal space squeeze and IMF condition for accessing one billion dollar loan to Bangladesh might also pave the way for increasing different type of inequality; such as geographical inequality, income inequality and social inequality in the country, the think-tank said.

Finance Minister almost echoed with the think-tank and said that the next fiscal year would be challenging for the economy. “Recovery from the recession and political instability pose a great risk for the economy and we’re going to form a taskforce to deal with it,” he told journalist on Friday.

He does not hesitate to blame that the economy has fallen into trouble after recovery from recession due to commodity crisis and in Bangladesh political stability rubs salt to the injuries.

The anti-tobacco lobby expressed mixed reaction, when the government increased tax to 42.5 percent to discourage smoking. The activists were expecting strict economic restrictions of the tobacco growers.

Bank stocks went up Wednesday and Thursday riding largely on report that corporate tax will go down to 40 percent for commercial banks.

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Washington, DC, United States (AHN) – Beneficiaries of a $1.25 billion settlement of a discrimination case between the government and black farmers have begun receiving notifications, bringing a decades-old class action lawsuit a step closer to conclusion.

The Agriculture Department settled the historic case, known as Pigford II, in early 2009 but appropriation from Congress was delayed over Republican concerns about fraudulent claims and the costs of the settlements during a recession.

The settlement is the second one reached with black farmers, led by Timothy Pigford, who filed a class-action suit in 1997 alleging racial discrimination in farm loan programs dating back to 1983.

The government paid out $1 billion in 1999 to more than 15,000 farmers in the settlement known as Pigford I. However, about 72,000 missed the filing deadline for claims, leading to another settlement and allegations of fraud from conservatives.

Lawmakers appropriated $100 million for the Pigford II case in 2008 through a farm bill, leaving $1.15 billion that still required approval. Last December, a bill appropriating the remaining amount was signed into law despite GOP opposition.

House Republicans led by Reps. Michelle Bachman (R-MN) and Steve King (R-IA) had sought to withhold funding, citing fraud in the claims process and in spite of assurances from Agriculture Sec. Tom Vilsack that the bill includes protections against abuse.

A December 2010 report from the Congressional Research Service also confirmed arguments by black farmers that the USDA census on farmers in the period covered by the case was inaccurate. According to the report, the census failed to account for farmers who rented farmland and those who were not actually farmers because they tried to farm but were denied loans.

The Pigford II settlement still requires final court approval, which will be handed down during a hearing on Sept. 1. Following the ruling, each claim will be reviewed, making payments unlikely before late 2012.

The filing deadline for claims may be as early as the end of February next year. Beneficiaries who oppose provisions of the settlement may file their objections by Aug. 12.

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Washington, D.C., United States (AHN) – President Barack Obama on Friday heads to Toledo to tour Chrysler’s Assembly Complex there to extract maximum political mileage from the fact that just over a week after Chrysler Group LLC paid off its federal bailout loan of $7.6 billion.

Paving the way to the visit is also a White House report released on Wednesday highlighting the resurgence of the American auto industry and emphasizing the turnaround of the companies that are now turning a profit after hanging on the borderline of collapse.

The report noted that the certain closures would have cost at least an additional one million jobs and devastated vast parts of our nation’s industrial heartland.

The presidential decision to “save GM (General Motors) and Chrysler was about more than those two companies,” said the report, adding, “It was about standing behind the countless workers, communities, and businesses – large and small – that depend on the automotive industry.”

The report cited the comeback shown by the American auto industry in last two years, with GM “expanding production and adding jobs,” while Chrysler repaying “its outstanding loans to the U.S. Treasury – six years ahead of schedule.”

“Since GM and Chrysler emerged from bankruptcy, the auto industry has created 115,000 jobs, its strongest period of job growth since the late 1990s. GM, Ford and Chrysler have all returned to profitability, and in 2010, the “Detroit three” gained market share for the first time since 1995,” the report highlighted.

Addressing journalists on Wednesday in the White House, Ron Bloom, Assistant to the President for Manufacturing Policy Ron Bloom said, “Now, the credit for that importantly goes to the men and women of those companies and their stakeholders, who all made very, very difficult decisions to come together.”

Bloom, however, added, “But we think that it is also worth noting that the courageous decision the President made to stand behind these companies.”

Asked to give a breakdown of the money involved in rejuvenating the American auto industry, Bloom told journalists, “The total funds invested, including the prior administration, into the industry is roughly $80 billion. Roughly $40 billion has been returned to date.”

“The remaining money is accounted for by stakes in General Motors — we’ve sold about half of what we own, but we still own the other half — a small equity stake in Chrysler; and a stake in Ally Financial, which is the old General Motors Acceptance Corporation,” Bloom added.

About the administration policy of selling the stakes, Bloom said, “I think it’s a question of a principle that we’ve adopted that we don’t think we should be a permanent or long-term player in the private economy, and we’re trying to be true to that principle.”

Bloom urged Congress to move ahead with pending law making process saying, “The actions taken by this Administration have laid the foundation for manufacturing’s quiet resurgence, but we cannot be complacent. That is why Congress must take action to build on our early momentum.”

On Friday around 1 p.m., the North Toledo plant of Chrysler where the company makes Jeep Wranglers, would be hosting President Obama as he is scheduled to arrive at Toledo Express Airport in the morning according to the White House sources.

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Washington, D.C., United States (AHN) – President Barack Obama on Friday heads to Toledo to tour Chrysler’s Assembly Complex there to extract maximum political mileage from the fact that just over a week after Chrysler Group LLC paid off its federal bailout loan of $7.6 billion.

Paving the way to the visit is also a White House report released on Wednesday highlighting the resurgence of the American auto industry and emphasizing the turnaround of the companies that are now turning a profit after hanging on the borderline of collapse.

The report noted that the certain closures would have cost at least an additional one million jobs and devastated vast parts of our nation’s industrial heartland.

The presidential decision to “save GM (General Motors) and Chrysler was about more than those two companies,” said the report, adding, “It was about standing behind the countless workers, communities, and businesses – large and small – that depend on the automotive industry.”

The report cited the comeback shown by the American auto industry in last two years, with GM “expanding production and adding jobs,” while Chrysler repaying “its outstanding loans to the U.S. Treasury – six years ahead of schedule.”

“Since GM and Chrysler emerged from bankruptcy, the auto industry has created 115,000 jobs, its strongest period of job growth since the late 1990s. GM, Ford and Chrysler have all returned to profitability, and in 2010, the “Detroit three” gained market share for the first time since 1995,” the report highlighted.

Addressing journalists on Wednesday in the White House, Ron Bloom, Assistant to the President for Manufacturing Policy Ron Bloom said, “Now, the credit for that importantly goes to the men and women of those companies and their stakeholders, who all made very, very difficult decisions to come together.”

Bloom, however, added, “But we think that it is also worth noting that the courageous decision the President made to stand behind these companies.”

Asked to give a breakdown of the money involved in rejuvenating the American auto industry, Bloom told journalists, “The total funds invested, including the prior administration, into the industry is roughly $80 billion. Roughly $40 billion has been returned to date.”

“The remaining money is accounted for by stakes in General Motors — we’ve sold about half of what we own, but we still own the other half — a small equity stake in Chrysler; and a stake in Ally Financial, which is the old General Motors Acceptance Corporation,” Bloom added.

About the administration policy of selling the stakes, Bloom said, “I think it’s a question of a principle that we’ve adopted that we don’t think we should be a permanent or long-term player in the private economy, and we’re trying to be true to that principle.”

Bloom urged Congress to move ahead with pending law making process saying, “The actions taken by this Administration have laid the foundation for manufacturing’s quiet resurgence, but we cannot be complacent. That is why Congress must take action to build on our early momentum.”

On Friday around 1 p.m., the North Toledo plant of Chrysler where the company makes Jeep Wranglers, would be hosting President Obama as he is scheduled to arrive at Toledo Express Airport in the morning according to the White House sources.

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Polonnaruwa, Sri Lanka (IRIN) – Women could prove key to the success of Sri Lanka’s rural water and sanitation projects, experts and villagers say.

As a five-year project to reduce time spent collecting water and to ensure safe drinking water jointly launched by the Asian Development Bank (ADB) and Sri Lankan government comes to a close, its leaders are reflecting on the lasting benefits of their decision to incorporate women in an unprecedented way.

“Usually women are in the backseat, but in this [project] we were right in front,” Indrani Silva, who heads the women’s association at Lanka Pokuna village in the north-central Polonnaruwa District, one of five rural areas involved in this US$263 million undertaking, told IRIN.

Projects took place in eastern Batticaloa and Trincomalee, north-central Anuradhapura and Polonnaruwa and southern Hambantota districts.

Upon completion at the end of 2011, an estimated 900,000 people will have benefited, and those involved say it is largely because the project’s policies took into account the importance of gaining the trust and involvement of local women.

“[Women] understand the value of safe water. On top of that, they bear the traditional responsibility of collecting water, cleaning and cooking. You need them to be involved for any such project to have a chance,” Mookiah Thiruchelvam, ADB’s senior project officer overseeing the project, explained.

At the level of initial discussions with potential beneficiaries, 50 percent of participants and at least 25 percent of the government officials from the Water Supply and Drainage Board were women. This is not usual, Silva said.

“Usually these types of big projects will have no major involvement from the community, except for taking part in meetings. Even then the lead role is taken by men. Now this is our project; without the village women, this will not succeed,” she said.

Attanayke Mundiyanse Senevirathana, chief sociologist working on improving access to water in the Polonnaruwa District, says the men were primarily farmers and did not have the time to play a big role, let alone collect water.

“It is the women who used to spend hours and walk miles to collect the water,” Senevirathana said.

In Talpotha, a village in Polonnaruwa, the women’s association is central to managing water distribution from a new pumping station and water-tank.

A member of the association does a monthly round of the 172 new connections, tabulating usage and collecting payment. But during the dry season their role becomes even more important.

“We go around requesting users to limit usage,” said Sheila Herath, the chairwoman of the association. “All of them are our members and we can easily convince them.”

Economic benefits

ADB’s Thiruchelvam feels the next step is to use the time saved on collecting water to increase the income of the beneficiaries.

“The women have regained three hours every day that were spent on collecting water,” he said.

Among some rural villages, women’s associations have also proven to be effective in promoting new income generation.

A loan from a local women’s association has helped Liyaduruge Siriyawathie, 45, to earn an additional Rs10,000 ($100) every month. She uses the time freed from walking kilometers to collect water to draw portraits and other designs that are sold. “For over two decades I did not have time to draw,” she said.

Thiruchelvam said future water projects should take advantage of women’s roles and, importantly, the freed hours that used to be spent on collecting water. “We don’t calculate the productivity [gained]. It is time we started doing that.”

Meanwhile, experts believe similar water and sanitation initiatives involving women could prove instrumental in the conflict-affected north, where access to piped water after two decades of war remains problematic.

On average, only three out of 10 people have access to piped water in all the districts that fall within the Vanni, an area encompassing the two districts of Kilinochchi and Mullaithivu and parts of Mannar and Vavuniya districts in the north, according to the National Water Supply Board.

The ADB and the Sri Lankan government are implementing a comparable project, with a high focus on women, in the Vanni and Jaffna valued at $164 million, Thiruchelvam says.

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photo credit: ericskiff

First – Determine how much money you need to acquire a certain property and be sure to include the purchase price, closing cost and complete renovation costs. If you do not know the renovation cost be sure to make your best estimate so you do not leave these out.

Second – Start to market for private lenders. Make a point to tell everyone you know and meet “that you investing in discounted real estate investments and are looking for investors.” Show your potential private lenders how to start investing passively in investment real estate. You can also use other marketing strategies such as sending out post cards to wealthy people or putting up flyers in 55+ communities.

Third – You will need to create a presentation kit to educate your potential private lenders to the power and security of investing in discounted real estate. Essentially, position them as “the Bank.” (more…)

photo credit: Mike Licht, NotionsCapital.com

Imagine the scenario if you will, you’ve applied for a loan or mortgage and are earning enough to meet repayments.

You may already be making plans for where to prioritise the finances and are waiting for that acceptance letter to arrive.

The mail arrives, and amongst the bills and junk mail you find a letter from the loans company saying you have been unsuccessful in your application.

There may be an initial feeling of shock and disbelief, however, this is not an indication for panic; there are steps you can take to find out what went wrong and what you can do to ensure future successful applications.

Failed applications for loans and mortgages can be an indication of blemishes on your credit record. It is advisable to check your credit rating for any factors which may have affected your score, some of which you may be unaware of.

Bad marks on your credit rating can be accidentally accumulated as a result of factors such as: (more…)

photo credit: TheTruthAbout…

When considering financing through a private mortgage lender, you must first locate a private lender with an interest in your particular real estate venture. Private lenders are ordinary people who are willing and financially able to fund your real estate venture by means of their own assets. You can locate private lenders through networking with others in the business, asking for referrals, or making a public presentation to a group of potential private money lenders.

Assuming you have located the private mortgage lender, you will need to set up a meeting to negotiate the terms of the private mortgage loan. Keep in mind that the private lender you choose can secure funds for you through a commercial institution or through personal assets such as bonds, stocks, or cash. You will want to negotiate terms that will present a win-win situation for both you and the lender. (more…)

photo credit: Mike Licht, NotionsCapital.com

If you have tried to get a traditional mortgage, or even a hard money loan, to finance your real estate investments you know how hard it is to get loans in today’s post-credit bubble market. It is even harder to get “no money down” loans for your real estate investing business. If you are using traditional mortgage or hard money loans they can take two or three months to close. The problem you will quickly discover is that sellers are not willing to wait that long and get angry at having to continuously extend their contracts or wait for your loan approval.

Banks and mortgage lenders view mortgage loans to real estate investors as a higher risk than loans to home owners. They believe if the home owner is not living in the property and if trouble hits an investor will opt to pay their own home mortgage first and only pay for the investment loan if they can afford to make the payments. This puts the bank in a very poor position. As a result, most banks are looking for real estate investors to put up 30% to 50% down payment to protect their interest in time of trouble. VERY few investors have this kind of cash so it is very difficult or impossible to do deals with traditional mortgage or hard money loans. (more…)