The Rising Cost of Hope: Effects of Inflation on Children in Poverty
By Micah J. Griesinger
Inflation can tighten the grip of poverty, turning daily hardships into crushing burdens and pushing hope further out of reach.
“The pain of COVID is still fresh. Parents lost jobs, and businesses closed. Families are also facing malaria outbreaks and food shortages. And medical support is becoming inaccessible to children as costs continue to rise.” — Hapi Wanje, Mobilization and Support Manager, Africa
“The communities we serve are truly hard places to live. The cost of living in Haiti is astronomical — gas is nearly $6 per gallon, and almost half of families are experiencing a food crisis.” — Elsa Miranda, Mobilization and Support Manager, Latin America
“The one whose salary used to make $1,000 or $2,000, now his salary [is worth] like $40.” — Bob, Child Champion in Lebanon
Inflation tightens the grip of poverty around the world. Vulnerable families feel the effects most, as essentials like food and fuel become increasingly inaccessible, making survival more difficult. For children, the impact is even more severe — meals become less frequent, education slips further away, and medical care becomes a luxury many parents can’t afford.
In this post, we’ll explore why inflation hits vulnerable communities hardest and what it means for children and their futures. We’ll also look at how kids, families, Child Champions and Hope Centers across Asia, Africa, Latin America and the Middle East are navigating this crisis today.
Let’s dive in.
A Look at Inflation Around the World
Inflation occurs when the price of goods and services rises, reducing the purchasing power of families and making essentials harder to afford.
While the economy is gradually stabilizing, much of the world is still grappling with the lingering effects of the early 2020s inflation surge. Prices remain higher than expected, continuing to strain already vulnerable communities.
A boy from the Philippines (by Ty Van Rensburg)
In 2020, the COVID-19 pandemic sent shockwaves through the global economy, wiping out the equivalent of 255 million full-time jobs and triggering the worst recession since the Great Depression.1
Add that to ongoing conflicts in the Middle East and Ukraine, major supply chain disruptions, and companies capitalizing on the crisis by hiking prices, and you get inflation levels like those shown below.
While costs are expected to decline, developing countries are still facing crippling prices and inflation rates far above the global target of 2% set by central banks.
Astronomical Inflation Levels in Developing Nations
Some countries faced staggering inflation in 2023, including Haiti (44%), Lebanon (221%) and Zimbabwe (667%)2 — all places where OneChild serves. Every country faces its unique set of challenges, making the crisis even more complex.
Elsa Miranda, our Mobilization and Support Manager for Latin America, shares the reality for our partners in Haiti:
“The cost of living in Haiti is astronomical. Gas is over $5.50 USD per gallon and can go up much more. I have personally seen the lines that are super long when you get gas in Haiti because sometimes it runs out. Food is expensive and often not the freshest. Many times, fruit is rotten. 5.4 million people — nearly 46% of Haiti’s population — are experiencing a food crisis. Haiti has been a truly hard place to live.”
The Impact of Inflation in Africa
Increased and widespread taxation — exceeding 42% — has diminished disposable income, making it even harder for parents, caregivers and children to cope with the rising cost of living. These financial pressures are directly impacting the ability of Hope Centers to operate effectively.
“The effects, damage and pain COVID caused are still fresh four years down the road. Parents and caregivers lost jobs and businesses went down, affecting their capacity to stand on their two feet. These effects are still felt not only in the homes but the church we support and, hence, the Hope Centers.”
— Hapi Wanje
A fisherman carries a boat motor on Buvuma Island in Uganda. (By Ty Van Rensburg)
Hapi and other OneChild leaders in Africa shared with us the struggles their communities are facing:
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- Widespread job loss: Many businesses have shut down, leaving families without stable incomes.
- Rising education costs: High tuition is straining families already struggling to provide their children with necessities.
- More limited medical access: Health care is becoming increasingly unaffordable for children.
- Strained Hope Center resources: It’s becoming more expensive to cover medical checkups, vaccinations and treatments for illnesses while also responding to food shortages, conflicts and malaria outbreaks.
- Rising costs for learning materials and support: Hope Centers are struggling to continue providing the same levels of quality educational resources, extra tutoring and specialized support.
- Limited social and emotional development opportunities: Activities like sports and field trips are difficult to provide due to financial constraints.
Hope Centers need more resources to continue covering basic needs and providing excellent care through their comprehensive, holistic programs for children.
The Effects of Inflation on Children in Poverty
“Crises linked to the COVID-19 pandemic and the Russia–Ukraine war have erased years of progress in reducing extreme child poverty. Estimates show this backsliding will continue, with 15 million more children living in poverty by 2030 than would have otherwise.” — UNICEF
1. Food Insecurity and Malnutrition
Many families can no longer afford nutritious meals for their children. And nearly half of all deaths among children under age 5 today are linked to undernutrition.3 When kids lack proper nutrition, they risk poor physical growth, impaired neurological development, weakened immunity, and learning difficulties — all of which can have lifelong consequences.4
“No child should die because of poverty.”
— Toyditz Cosico, Director of Mobilization and Program Support, Asia
A boy from a village in Turkana, an arid region of Kenya (by Davey Gravy) | A girl at her school in Cambodia (by Ty Van Rensburg)
Rising food prices are also closely linked to stunting — a condition that impairs growth and development in children, making them too short for their age.5 Stunting doesn’t only affect physical development but has lasting negative consequences on immunity, cognitive development and future economic potential.
Yet, in the midst of these struggles, hope remains.
“Many families in Latin American communities are experiencing food insecurity. But they are finding hope in the Hope Centers through support they are receiving and training to improve their economic situation.”
— Elsa Miranda
Read about how a Hope Center helped a boy named Yonas secure a bright future. “I never went hungry, neither was I thirsty or lacked anything,” Yonas says. “The Hope Center shielded me from that.”
2. Housing Instability
Safe and stable housing is foundational to a child’s well-being and development. In contrast, housing instability can lead to poor health, declining school performance, developmental setbacks and significant stress.
The pandemic caused many families to fall behind on rent, especially those with children.6 In some regions, inflation has worsened living conditions, increasing vulnerability to violence and crime.
“The cost of living has gone up, and many communities we serve in Honduras are run by gangs, so violence has increased, and people live in fear. But our Child Champions do home visits and provide encouragement, camps, Bible studies and trainings to make a difference in the lives of children and for those children to become great leaders of their communities.”
— Elsa Miranda
Read how a Hope Center in Honduras and a loving sponsor came alongside José and his family during and after the pandemic, giving them hope and ensuring they had what they needed:
3. Energy Insecurity
For billions around the world, soaring energy prices have exacerbated the cost of living. Rising energy costs hit children from poor and vulnerable families the hardest. Without affordable electricity or fuel, families struggle to cook meals, refrigerate food and heat homes in the cold or cool them in extreme heat — all of which directly affect a child’s health, nutrition and safety.7
A home in La Vega, Dominican Republic, in an impoverished community filled with gangs and violence (by Ty Van Rensburg)
4. The Learning Crisis
Before the pandemic, 57% of 10-year-old children in low- and middle-income countries couldn’t read. By 2022, that number climbed to 70%.
School closures in the Caribbean, Latin America and South Asia lasted longest, leading to acute learning losses. In sub-Saharan Africa, the number of out-of-school children continues to rise, a trend expected to continue through 2030.8 Meanwhile, many African Union countries are allocating more money to debt repayment than to education or health, deepening the learning crisis.
Near a Hope Center in Nairobi, Kenya, in an area that lacks sanitation services (by Ty Van Rensburg)
This learning crisis is threatening the future of children worldwide. Failing to invest in children now will threaten not only their futures but entire nations, lowering the capacity to repay debts. According to UNICEF, today’s generation of students risks losing $21 trillion in potential lifetime earnings if urgent investments aren’t made to recover learning losses.9
Bringing It All Together
Food and energy insecurity, housing instability and lack of education intersect, creating barriers that prevent children from developing holistically. Without intervention, these challenges will keep children trapped in poverty.
Holistic child development — addressing physical, mental, emotional and spiritual growth — is key to breaking these cycles and empowering children to thrive.
Read our guiding principles in “Why Holistic Development is the Best Approach for Reaching Children in Poverty” to learn more.
Hope Centers Bring Love and Light to Hard Places
Child Champions are tirelessly serving thousands of children in extreme poverty around the world. Hope Centers have been a lifeline through this difficult season — pouring into kids, meeting urgent needs, and bringing joy and hope to communities in crisis. Here are just a few examples out of the more than 20 countries where OneChild serves.
A Haven in Haiti
“Haiti has been a truly hard place to live. But through the work that is being done at the Hope Center, children truly have hope and want to have a positive impact on their country.”
— Elsa Miranda
When you meet the Child Champions in Haiti, their love for Christ and the children is unmistakable. The Hope Center is a haven — a place of love, learning and celebration. Children can:
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- Develop life skills, such as sewing, to prepare for the future.
- Discover talents like music or soccer, where they learn teamwork and perseverance.
- Find encouragement from mentors who believe in them.
Even in a place full of uncertainty, the Hope Center and its Child Champions bring light and hope where darkness looms.
“You must see the passion some of the children have when playing soccer or playing a wind instrument. It is truly a sight to see.”
— Elsa Miranda
A boy who attends a Hope Center in Haiti (by Ty Van Rensburg)
Hope in the Middle East
“The cost of goods is rising rapidly, and salaries simply aren’t keeping up. So poverty has been increasing. It’s been more challenging for families to have enough food. Food scarcity has become an increasing issue that’s being felt in Jordan.”
— Hannah, Child Champion in Jordan
In Jordan, education costs are prohibitively high, making it difficult for families to keep their kids in school. In Lebanon, economic collapse has led to hunger and desperation. Local Child Champions report that Lebanese families make almost nothing when inflation is factored in.
But hope is alive in the Middle East.
Hope Centers have stepped up and become feeding centers to ensure families have nutritious food. Whole communities have had the opportunity to receive medical care. Families have received clothing and shoes. Programs even incorporate vocational training to help families build stability.
Child Champions continue to ensure kids are receiving the best care possible.
Read more about how Hope Centers in Jordan and Lebanon have worked tirelessly to help kids thrive amid conflict and displacement.
These girls are on their way to a school-based Hope Center in a small town in Jordan, where they receive an excellent education and support from their Child Champions. (By Ty Van Rensburg)
50,000 Registered Children
We’d like to introduce you to Delight from Zimbabwe — who was OneChild’s 50,000th registered child and receives education and spiritual encouragement at her Hope Center! She’s made loyal friends and has been chosen by a sponsor who makes her feel “special and blessed.” Delight can now pursue her dream of becoming a doctor to help others in her community.
Help Us Restore Hope During Hard Times
“Children are special in the eyes of our Father.”
— Toyditz Cosico
If you’re already sponsoring a child or supporting Child Champions in any way, thank you. Your generosity is making a difference. If you’re looking for more ways to get involved, we’d love to connect with you! You can:
There are so many ways to be part of this community and help children find hope, thrive and build a better future.
Two friends in Kolkata, India (by Ty Van Rensburg)
1. United Nations. (2021). Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all. United Nations Sustainable Development Goals Report. https://unstats.un.org/sdgs/report/2021/goal-08/
2. International Monetary Fund. (2024, October). World economic outlook database. https://www.imf.org/en/Publications/WEO/weo-database/2024/October
3. World Health Organization. (n.d.). Malnutrition. WHO Fact Sheets. https://www.who.int/news-room/fact-sheets/detail/malnutrition
4. UNICEF Innocenti. (2023). Prospects for children: A global outlook through 2023. United Nations Children’s Fund. https://www.unicef.org/innocenti/media/651/file/UNICEF-Innocenti-Prospects-for-Children-Global-Outlook-2023.pdf
5. Schwartz, J. I., Shei, A., Caulfield, L. E., & Martinez, S. (2024). Health expenditures and child mortality: The role of governance and macroeconomic factors in low-income and lower-middle-income countries. Health Economics Review, 14(1), https://healtheconomicsreview.biomedcentral.com/articles/10.1186/s13561-024-00549-9
6. Center on Budget and Policy Priorities. (2024). Stable housing is foundational to children’s well-being. CBPP Blog. https://www.cbpp.org/blog/stable-housing-is-foundational-to-childrens-well-being
7. UNICEF Innocenti. (2023). Prospects for children: A global outlook through 2023. United Nations Children’s Fund. https://www.unicef.org/innocenti/media/651/file/UNICEF-Innocenti-Prospects-for-Children-Global-Outlook-2023.pdf
8. UNICEF Innocenti. (2023). Prospects for children: A global outlook through 2023. United Nations Children’s Fund. https://www.unicef.org/innocenti/media/651/file/UNICEF-Innocenti-Prospects-for-Children-Global-Outlook-2023.pdf
9. UNICEF. (2022, June 23). 70% of 10-year-olds in learning poverty, unable to read and understand simple text. https://www.unicef.org/press-releases/70-cent-10-year-olds-learning-poverty-unable-read-and-understand-simple-text
