humanitarian aid to Suriname
Suriname, officially the Republic of Suriname, is a small country on the northeastern coast of South America. Originally a Dutch colony, Suriname gained independence in 1975. Though Suriname is not a widely prosperous country, its economy has recently endured a variety of difficulties.

 

The Netherlands

In 2016, Suriname’s Gross Domestic Product (GDP) was more than $3.6 billion, the unemployment rate was slightly less than 10 percent and the poverty rate was 47 percent.

Despite gaining its independence, the Kingdom of the Netherlands was Suriname’s heaviest financial donor, sending years worth of humanitarian aid to Suriname. In 2012, the Netherlands suspended all aid to Suriname — approximately 26 million — two years after the election of President Desi Bouterse.

 

The European Commission

The European Commision has also approved emergency funding for Suriname over the years, especially in the case of natural disasters. Suriname is prone to severe flooding, which can wipe out homes and businesses, and increase unemployment and poverty. Usually, this aid is geared toward the population’s health, hygiene and sanitation, food and water.

 

People’s Republic of China

However, shortly after the Kingdom of the Netherlands completely pulled their funding to Suriname, the People’s Republic of China (PRC) increased its humanitarian aid to the country.

Since the immigration boom to Suriname in the 1990s, China has slowly been giving humanitarian relief to the South American country; in 2011, the Chinese government gifted Suriname with a new Foreign Ministry headquarters.

Also in 2012, China gave Suriname a grant of over 4 million to further the cooperation between both countries; however, it is unclear where this money is going. Since 2009, the Chinese embassy stated that development projects in Surinam — such as help with low-income housing, transportation, seaports and network television — are underway, despite any major initiatives.

 

Investment and Infrastructure

Within the last 10 years, China has set up various companies, businesses, shops, casinos and restaurants throughout Suriname. While this has vastly helped decrease unemployment, the poverty rate is still high, with nearly half the country living below the poverty line. In exchange for the land, China continues to give Suriname grants, buildings and advancements for the military.

 

Health-Related Aid

But not all of China’s aid is geared toward infrastructure and employment. In 2016, China provided Suriname with $1 million in humanitarian aid specifically geared toward Zika-related assistance. This included medical supplies and funding for medication and hospitalization for those affected. Zika virus is an infection most commonly found in Central and South America and can be fatal.

Suriname still has a long way to go before it is a completely stable country. The poverty rate still needs to lower significantly and the GDP must increase to be considered a prosperous economy.

Despite these much needed improvements, Suriname has already started distributing humanitarian aid itself. In September 2017, Suriname sent humanitarian aid to Cuba to help with relief efforts after hurricane Irma.

Though the success of humanitarian aid to Suriname is slow, the funds thus far have laid a solid groundwork. The Surinamese now have the tools they need to become a prosperous and independent country.

– Courtney Wallace

Photo: Flickr

enable consumers to fight for female education
There is a proven link between lack of education and rises in poverty numbers. People around the world struggle with poor school systems, denied scholastic access and few academic resources. Illiteracy is directly correlated to poverty, and creates a cycle that is hard to break. The difficulties associated with this crisis are large scale and ones that few individuals feel that they can fix by themselves.

 

The Female Plight

At the brunt of this battle is the female population. Due to gender-based violence, negative stigma within communities and higher rates of poverty, women globally lack education opportunities that are often provided to men.  

Many citizens believe that there is nothing that they can do to help, and rely on the bigger voices to take the lead. But there are companies working to change that and to enable consumers to fight for female education as well.

These companies work to help individuals make a global difference and improve the lives of women and girls who are deprived of an education. Consumers can join the fight to educate, empower and break the cycle of poverty created by females’ lack of schooling and access to it.

Here are a five of the most impactful companies that are working towards educating the world.

 

1. Conscious Step

This sock company supports many different global causes, including their non-profit partner, “Room to Read.” For every pair of “socks that give books” sold, a school book is given to a child in one of a list of targeted countries that struggle with education.

The company especially focuses on communities that need gender equality in their school systems, and work towards enabling girls to achieve an education alongside their male counterparts. Conscious Step also enables consumers to fight for female education through beautiful socks that everyone loves.

 

2. Sseko Designs

The apparel company, which specializes in sandals, works with young women in Uganda to ensure that many can receive a college education. Sseko Designs employs local girls during the nine-month period between the end of high school and potential beginning of college.

The organization then provides the pre-collegiate girls with employment and scholarship opportunities. For each month of their nine months,  50 percent of the girls’ earnings go into a savings fund for college. This savings account not only allows these driven women to further their education, but it also deters them from caving to social pressures to give the money away to family and friends, which would thus continue the poverty cycle.

At the end of employment terms, Sseko provides the involved girls with scholarships matching the amount of their savings by 100 percent. Thanks to their employment opportunities, the company has already sent 87 girls to college, so far.

 

3. Out of Print

A business that sells literature themed products, Out of Print not only donates to literacy programs but for every piece purchased, the company also sends one book to a community in need.

Many of these communities have low female attendance in education due to extremely high rates of gender violence. These products help improve these struggling communities and encourage girls to receive an education so that they can rise above poverty and illiteracy.

The book based company work to enable consumers to fight for female education, bring literacy into poorer communities and spread awareness about the difficulties in high illiteracy rates.

 

4. Bloom and Give

With a specialty in handmade bags, this company sends girls in India to school. The company works to help girls fight against social views and norms that deter them from attending class, and enable them to become educated even through cultural protests. The company donates half of their profits to programs and grassroots movements that work directly with in-need communities.

Bloom and Give’s vibrant bags and other products serve as a way for shoppers to give back globally and also help Indian communities educate girls.

 

5. Naja

This underwear and lingerie company helps educate Colombian children and aid mothers to return to work. Naja, through its “Underwear for Hope” line, employs local single mothers, or female heads of household, and provides their children with books, uniforms, school supplies and all school meals.

The company strives to change the dialogue that makes mothers choose between childcare and employment, and helps its female employees to educate their children. On top of that, two percent of Naja’s revenue goes towards local charities that fund continuing education for these women.

Naja empowers not only Colombia’s women and children to become educated but also empowers consumers to help in the process through their purchases.

 

Every Person Counts

While the education crisis is a global one, each person can make a difference. Educating women does not have to solely ride on the backs of the wealthy and the well-connected. The average person can send a girl to school, teach a girl to read and send a woman to college through conscious purchasing and globally-minded companies.

– Emily Degn

Photo: Pixabay

fair trade coffee in Colombia
Colombia is a land known for its jungles, food and, of course, the coffee industry. Four million of  Colombians rely on the coffee bean for income. While coffee is the second most profitable industry in the world, 30 percent of the country still lives below the poverty line. These valuable coffee farmers are living on less than $2 a day, and yet are at the forefront of the global economy.

 

Coffee Farm Wage Discrepancies

This discrepancy is largely due to two factors: the middlemen are making 87 percent of the profits, and most farms are too small to become “fair trade certified” in order to sell fair trade coffee in Colombia. It is an unprofitable business for the growers but is central to Colombia’s and the world’s economies.

This disconnect perpetuates poverty in the country, as well as creates a lack of interest in the youth to continue the coffee business. Children grow up watching their parents struggle on the farms and receive little pay from buyers, and witnessing such hardship significantly impacts the next generation’s well-being and career foci. There is now a growing trend of these growing sons and daughters not only leaving their communities to escape rural poverty, but participating in criminal activity and gang life due to lack of education, and a support system elsewhere.

As the coffee farmers struggle, crime increases, and in a cyclic motion, so does poverty. Fair trade coffee in Colombia is key to abolishing such high rates of poverty within the economy.

The country has been taking measures to focus on growing profits from the industry and works to address the poverty issue at hand. The Colombian Coffee Growers Federation has been working to spread fair trade coffee in Colombia, transparent and fair prices and humane working conditions for farm workers.

 

One Improvement at a Time

Thanks to new and required minimum price lines on the beans, and large-scale corporations stepping in to help, Colombia is slowly improving living conditions for their farmers, making it a viable income for many. Making coffee have a required fee guarantees that farmers make a certain profit. The farmers can charge more if they’re able, but doing so deters buyers from taking advantage of the small farms.

Starbucks is one of the large corporations practicing direct trade in order to ensure fair price for both parties. They don’t buy from middlemen. They go straight to the farm. This practice is spreading slowly among coffee chains, thanks to the ethical sourcing being already embraced by a few.  

 

Fair Trade Certification

A huge problem in the improvement process of this industry is the price to become Fair Trade Certified. Most of the coffee farms are small and lack the funds to gain certification. Many even already implement the practices involved, but are not able to participate in the movement and thus cannot gain the associated Fair Trade Certified market advantages.

Due to this occurrence, the National Federation of Coffee Growers strives to give easier access to the certification of small farmers, and lower costs. The Federation has already implemented measures to improve the sustainability, working conditions and economic value of the coffee business as a whole.

 

Fair Trade and Colombia

Colombia has a goal now to be certified nationwide by 2027. The government is working very closely with the different organizations to achieve this and is making the coffee business the nation’s business.

Thanks to conscious buyers, and chains that buy directly from the farmers, the country might be able to pull through with this achievable goal. The movement for fair trade coffee in Colombia has already gained a significant amount of traction in the United States and Great Britain, and small coffee farmers could be the key to raising Colombia out of poverty.

– Emily Degn

Photo: Flickr

Poverty in Mexico

Poverty in Mexico, and crime as a result of that poverty, are well-known problems. In Mexico, there is a rising level of violence as well as stagnant wages and declining purchasing power.

In 2014, 53.2 percent of the country lived below the national poverty line by the broadest measure of poverty. This means they lack sufficient income to meet basic needs including food, health, education, clothes, housing, transport and more.

On average, Mexican laborers worked a total of 2,246 hours in 2015, the most of the 35 members countries of the Organization for Economic Co-operation and Development (OECD). However, those workers earned on average a total of only $14,867, the lowest in the OECD.

According to the U.S. Agency for International Development (USAID), Mexico received $338 million in aid that was broadly classified as economic development and military assistance in 2015.

The amount of foreign aid to Mexico varies each year but it has been about 0.7 percent of overall U.S. foreign aid since 2010. Overall foreign aid represents about 1 percent of the federal budget.

There are several initiatives that address poverty and seek to help those living in poverty in Mexico. Three organizations running initiatives like these are:

  1. Freedom from Hunger
  2. Un Techo para mi País (TECHO)
  3. Economic Commission for Latin America and the Caribbean (ECLAC)

Freedom from Hunger

Freedom from Hunger uses microfinance as a self-assist support tool to help the poor reduce the day-to-day uncertainties of cash management. It also promotes the delivery of integrated financial services to increase economic and food security of the poor in Mexico and Central America, especially for women and girls.

Freedom from Hunger also developed and promoted “value-added” or “integrated” microfinance programs that pair financial services with education and health protection.

The education programs engage women during microfinance meetings with practical skills to promote better health, nutrition, business and money management through the use of dialogue, story, song, demonstrations and pictures.

The organization has six specially designed e-learning courses to build the skills of microfinance institutions and to create a frontline group who can provide better financial training to their clients.

TECHO

TECHO is a youth led non-profit organization present in Latin America and the Caribbean. They seek to overcome poverty in slums through the collaborative work of youth volunteers with families living in extreme poverty in Mexico.

TECHO aims to have society as a whole recognize poverty as a priority and actively work toward overcoming it, doing so through three strategic objectives:

  1. The promotion of community development in slums to drive thousands of families to generate solutions to their own problems. 
  2. Social awareness and action, with emphasis on having committed volunteers and involving different social entities.
  3. Political advocacy that promotes structural changes to decrease poverty. 

ECLAC

ECLAC, also known in Spanish as CEPAL, is a U.N. regional commission encouraging economic cooperation. It works toward economic, social and sustainable development in Latin America and the Caribbean. It also reinforces economic ties to other countries and nations around the world.

With efforts toward eliminating poverty in Mexico, there can be a pathway toward a stronger, flourishing country.

– Julia Lee

Photo: Flickr

U.S. benefits from foreign aid to Lebanon
From the civil war that lasted around 20 years, to the Israeli war in 2006 and the outbreak of the Syrian crisis in March 2011, Lebanon has been in a state of instability and conflict for many years. The nation has struggled to overcome the seemingly endless obstacles that prohibit the country from reform and development. Luckily, though, USAID and foreign aid in general have been a great source of support in assisting its citizens with greater accessibility to clean drinking water, increased access to primary healthcare centers and medical treatment and improving education, poverty and vaccination rates among children.

 

Is Foreign Aid Detrimental to the U.S.?

Answering how the U.S. benefits from foreign aid to Lebanon has been a subject of debate for many years, particularly among U.S. citizens who believe that their government is continuously providing monetary assistance to developing countries in huge amounts, far more than what is actually needed.

 

U.S. Perception

Most U.S. citizens estimate that around 25 percent of the federal government’s budget is spent on foreign aid; however, in reality, foreign aid accounts for less than 1 percent of the total budget. Since the perceived amount donated to help third world countries is highly inflated in the public’s eyes, it is expected that approximately 59 percent of Americans want to reduce foreign aid with the hope that the money will instead be invested in their own country.

Yet, what the public neglects is that the funds allocated to underserved nations is not just an act of compassion, but rather the establishment of a mutually beneficial relationship between both parties — the U.S. benefits from foreign aid to Lebanon through improved security, increased stability and economic prosperity. 

 

What are the U.S. benefits from foreign aid to Lebanon?

By contributing to the country’s development process through the investments in projects and programs aimed at educating people and providing citizens with necessary resources, the U.S. benefits from foreign aid to Lebanon through the establishment of a new trade relationship with the recipient country. This camaraderie will, in turn, increase its margin of profit.

In 2015, Lebanon imported goods from the U.S with a total value of $1.22 billion, as the U.S. ranked the country’s third top importer of goods. Such huge financial transactions have surely benefited both the donor (economic prosperity) and recipient (strong quality of goods).

Moreover, the U.S. donation of $419 million to aid Syrian refugees in Lebanon will not only help the Lebanese population in overcoming the economic and social burden imposed on their nation, but it will also reduce the influx of refugees to the U.S which can create an even greater burden if left uncontrolled.

 

Democratic Governance and Conflict Resolution

USAID has succeeded in initiating the start of democratic and resilient Lebanese societies by coordinating with local partners to enhance transparency and accountability of governments, as well as supporting elevated participation rates by the civil society, youth and women. By favoring government-led reforms that intend to foster more pluralistic and fair political leadership, U.S foreign aid to Lebanon has offered the country a chance to exercise proper peaceful democratic relationships.

 

Integration and Expansion

In response to the Syrian war crisis and its impact on Lebanon, USAID has also re-oriented existing projects in the country to integrate the refugees within the established system. Additional foreign aid to Lebanon has been provided to help host the refugees by building more schools, expanding health facilities and improving access to water.

Through foreign aid, Lebanon and the U.S. can maintain a healthy and mutually beneficial relationship that works to improve citizens’ lives from both nations.

– Lea Sacca

Photo: Flickr

children’s education in Africa
Children all across Africa fear attending school because more oftentimes than not they battle against abuse, bullying, corporal punishment and sexual predators. A safe-haven outside of the home has transformed into an extremely negative environment for many children; it is therefore vital to protect children’s education in Africa.

Dangers to Young and Adolescent Girls in Schools

Young and adolescent girls are especially vulnerable at schools — they are susceptible to sexual predators, HIV/AIDS, violence through bullying and premature marriages. All of these variables, if experienced, can lead to a continuation of the poverty cycle.

Unfortuantely, girls who continue with their education face a higher chance of experiencing abuse somewhere during their educational career. In fact, girls who seek higher education who are in poverty are more likely to be sexually exploited by older men — they are likely to trade sexual activities for food, a mobile phone or school fees.

 

Bullying in African Schools

Bullying is also a significant concern for children’s education in Africa. Statistics from USAID taken from Botswana, Ghana and Southern African show that almost half of its children’s population suffer from bullying.

Further studies in Uganda displayed that 95.6 percent of children are bullied, and another 88.3 percent face corporal punishment.

Bullying creates a hostile environment where children do not feel safe and cannot focus on their school work. Further studies from the same experiment also show that children who do get bullied have lower reading and testing skills.

When children face obstacles such as bullying they will often come to possess a disinterest in continuing their education, and children who do not feel protected will only continue to live in poverty.

 

Association for the Development of Education in Africa Aid

Some programs strive to improve the academic system and protect children’s education. One of these organizations is the Association for the Development of Education in Africa (ADEA).

This group, which partners with the African ministries of education, aims to create crucial conversations between policymakers and development agencies. The organization strives to share ideas, knowledge and lessons learned for educational reforms, and also to directly combat variables such as violence within the African schooling system.

 

USAID

USAID contributes to protecting the education system as well by teaming with the African governments and working towards stopping gender-based violence in schools.

USAID also partners with the U.S. President’s Emergency Plan for AIDS Relief to help young women. They encourage girls to be Determined, Resilient, Empowered, AIDS-free, Mentored and Safe (DREAMS). The DREAMS organization also aids in violence prevention programs across the continent where girls are most likely to contract HIV/AIDS.

 

The Literacy Achievement and Retention Activity Aid

In Uganda, the Literacy Achievement and Retention Activity works to improve the overall education system. By working alongside the Ministry of Education, the organization protects children’s education by working to produce a safe and supportive school environment.

Studies demonstrate that Ugandan boys and girls tend to continue their education career as long as they feel secure and supportive. These organizations and programs are essential to protecting children’s education in Africa, and to ensuring a bright future for the generations to come. 

– Cassidy Dyce

Photo: Flickr

taxi service for women
A study by the International Labor Organization isolated a lack of safe transportation as a major contributor to the low number of Pakistani women participating in the workforce. Pink Taxi is Pakistan’s first taxi service for women, and ‘Paxi’ aims to create a safe environment for both its female passengers and female drivers through its Pink Taxi service.

Paxi offers three services: bikes with male drivers for short distances, the Paxi Taxi with male drivers and the Pink Taxi with female drivers. Pink Taxis are Paxi’s women-exclusive car service — the cars will not pick up male passengers between the ages of 12 and 70.

Pink Taxi launched in March 2017 and has been growing in popularity. Two months after launch, the service received approximately 50-60 more requests for rides per day.

 

A Safe Form of Transportation

Karachi’s Urban Resource Center recently released a study that found that 55 percent of women commuting by public bus in Karachi felt uncomfortable and faced sexual harassment. Public buses have large men’s areas and small women’s areas, but separation is oftentimes not enforced.

Syed Nasir Hussain Shah, Minister for Transport in Sindh (the province where Karachi is located) supports safe alternative transportation for women. He says: “Having a mode of public transport catering to [the women] alone can solve many of their transport issues.”

 

Call a Cab via an App

The taxi service for women can be called with the Paxi app. To accommodate less tech-savvy customers, Pink Taxi users can also dial a call center or use SMS texting to find a car. The rides can also be hailed on the road. To make the taxis recognizable to passengers, the cars are heavily branded and drivers wear special uniforms.

In addition, Pink Taxi drivers are given free driving and self-defense lessons and extensive communication training. Female drivers might face harassment and threats on the job, but Paxi teaches its female employees how to mitigate these situations.

 

Cost of a Paxi

Each ride is slightly more than a traditional taxi service, with a base fare of Rs. 150 and an additional Rs. 15/km. Other taxis start at a base fare of Rs. 100. Taxis are substantially more expensive than bus fare — a one-way bus ticket costs Rs. 20.

For professional women, Pink Taxis offer a welcome alternative to male-driven taxi cabs; however, the price can exclude lower-income women who rely on the bus for their daily commute.

 

Paxi’s Unifying Goals

Paxi aims to bring its taxi service for women to other cities in Pakistan such as Sukkur and Peshawar — Peshawar, for instance, is deeply conservative and observes strict purdah (seclusion of women), so Paxi would be extremely useful to the women in these areas. In fact, Paxi’s founder, Shaikh M. Zahid, argues that bringing Pink Taxis to Peshawar can give the large number of highly-educated women increased mobility throughout the city. This idea is encouraged by the positive response he’s received in informal talks with religious leaders and women in the community. 

For now, though, Paxi will continue increasing its fleet of women drivers in Karachi to meet growing demand, all while looking to expansions of its services in the future.

 – Katherine Parks

Photo: Flickr

ethnic cleansing and genocide
The United Nations (U.N.) first termed ‘genocide’ in the Convention on the Prevention and Punishment of the Crime of Genocide, while ‘ethnic cleansing,’ on the other hand, is not recognized as a crime under international law (United Nations Office on Genocide Prevention and the Responsibility to Protect).

The lines between the ethnic cleansing and genocide can become blurred; however, when it comes to the international community taking action to mediate in a crime, the difference between ethnic cleansing and genocide needs to be understood.

 

Genocide

Genocide, in the Convention, means “any of the following acts committed with intent to destroy, in whole or in part, a national, ethnical, racial, or religious group, as such:

  1. Killing members of the group;
  2. Causing serious bodily or mental harm to members of the group;
  3. Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction in whole or in part;
  4. Imposing measures intended to prevent births within the group;
  5. Forcibly transferring children of the group to another group.”

Therefore, under international law, genocide is a punishable crime. Any person found guilty of carrying out genocide will be tried by a tribunal of the state where the genocide was committed or an international tribunal.

 

Ethnic Cleansing

Ethnic cleansing is the process of removing particular groups from a specific area based on race, nationality, religion and other identifying principles.

While ethnic cleansing doesn’t, by definition, involve the intent to kill a group, the resettlement of said people typically results in the loss of lives; genocide, however, focuses on the “intent to destroy.”

Ethnic cleansing is considered a crime against humanity. It has not been written and signed in any U.N. treaty, which means Member States do not have to protect those who have fallen victim.

Critics of the terms “ethnic cleansing” and “genocide” say that many state governments will use the initial phrase — even in incidents that could arguably be classified as genocide — in order to escape the necessity of using state resources and taking action against the perpetrating nation.

 

Responsibility to Protect

International law, in general, is a tricky topic when it comes to holding perpetrators accountable and protecting human rights. However, there is discussion on the national and international level (especially within the U.N.) to improve global law enforcement mechanisms.

The Responsibility to Protect (R2P) doctrine says that “if a state is unable to protect its own population from “genocide, war crimes, ethnic cleansing and crimes against humanity” then the internationality community must do something.”

R2P was adopted at the World Summit in 2005. It aims to hold member states accountable for the equal and moral protection of their own populations and all populations at risk of genocide and other mass atrocity crimes.

Discussion is increasing to meet the needs of millions of individuals that have suffered (and are suffering) from ethnic cleansing and genocide in the world today.

– Caysi Simpson

Photo: Flickr

U.S. Benefits from Foreign Aid to Indonesia
The U.S. has allocated a total of $27.8 billion in foreign aid for the fiscal year of 2018 to benefit numerous countries around the world. One such recipient of that foreign aid is Indonesia, a country that began receiving U.S.-based funds after it gained its independence from Netherland in 1949.

Agencies like the U.S. Agency for International Development (USAID), Millennium Challenge Corporation (MCC) and Peace Corps have assisted the country for over 60 years in various development challenges. Although the country attributes much of considerable progress to foreign aid, the U.S. benefits from foreign aid to Indonesia in numerous notable ways as well.

 

U.S. Benefits from Military Cooperation

The U.S. administration requested almost $41.7 million as foreign aid for Indonesia in fiscal year 2008. The goal was a joint fight of the two countries against terrorism, weapon expansion and other trans-national crimes. These aims also included strategic monitoring of waterways surrounding Indonesia and cooperation with the United States armed military forces.

From 2011 to 2016, the U.S. and Indonesia jointly performed 998 defense and security activities. High ranking military officials of the two countries exchanged their views on regional and global security issues through the Indonesia-United States Security Dialog (IUSSD) meetings. In 2015 at one of these meetings, the officials stated their focus on the following activities:

  • Cooperation on Maritime and Peacekeeping Operations
  • Humanitarian Assistance and Disaster Response
  • Defense Procurement and Joint Research and Development
  • Countering Trans-National Threats and improving military professionalization

 

U.S. Benefits from Maritime Cooperation

In June 2010, the two countries signed a Memorandum of Understanding (MOU) on Maritime Cooperation which led to a joint National Oceanic and Atmospheric Administration (NOAA) expedition. This voyage helped explore geological, biological and archaeological features of the unexplored ocean and involved scientists and engineers from both countries.

The MOU also extends cooperation in conservation and management of fishery, the Coral Triangle Initiative (CTI) and maritime safety and security, including combating and eliminating illegal, unregulated and unreported (IUU) fishing.

 

U.S. Benefits from Economic Development

In 2008, the U.S. invested almost $27 million in the economic development of Indonesia. This funding helped to prevent corruption and increase transparency in finance, investment and the private sector of Indonesia facilitating trade between the two countries.

As a result of these aims, the U.S. Foreign Direct Investment (FDI) stock reached almost $16 billion in Indonesia in 2009, an increase that substantially aided the growth of the U.S. investment sector. Then, from 2010 to 2011, the trade between the two countries amounted to almost $23.4 million with a 17 percent increase of exports of U.S. goods to Indonesia.

The U.S. is also a major supplier of aircraft transport, rail transport and energy sector equipment to Indonesia. In 2011, the supply of U.S. agricultural products was remarkable and earned more than $3 billion for the country.  Different U.S. firms also invested a combined $450 million on plants.

 

Other Benefits

Indonesia is one of the world’s top greenhouse gas emitters due to its vast tropical forest. Thankfully, though, with the help of Millennium Challenge Corporation (MCC) and USAID, the country aims to reduce CO2  emissions and generate 19 percent of the energy from renewable sources by 2019; accomplishing these goals would help fulfill the admirable targets of the Sustainable Development Goals (SDGs).

Since 2004, the U.S. has also assisted with Indonesia’s education programs. This aid helped to develop education exchange programs between universities of two countries and in January 2017, it was reported that almost 500 U.S. citizens studied in Indonesia with scholarships helping waive tuition fees and living expenses.

The U.S. benefits from foreign aid to Indonesia is manifold in fighting terrorism and fostering marine exploration, fishing conservation, exchange education programs and job creation. These advantageous results help prove that foreign aid does not have to be charity but rather a strategic investment benefitting both recipient and donor.

– Mahua Mitra

Photo: Flickr

credit access in South Africa
In order to have a stable and profitable economy, a country must rely on instilling credit options for its citizens. This comes with some downfalls, such as the ability to spend more than one earns, and can lead to debt.
Credit access in South Africa became a struggle for its citizens, and in 2001, about 57 percent of the country lived below the poverty line. More often than not, it’s poor people that lack credit for loans and other ways to get funds.

 

Accessing Financial Services

During apartheid, many South Africans were denied access to simple financial services like being able to establish credit. Whether caused by social barriers or policies, the people living in the country strived for change once the divisive political system came to an end.

South Africans were able to pass the National Credit Act in 2005, an act that allows for the promotion and advancement of “the social and economic welfare of South Africans, and also promotes a fair and transparent credit market and industry to protect consumers,”  according to the Banking Association of South Africa. 

 

A Decade of Results

In the decade after the law was passed, there has been a significant increase in job retention, income and even the quality of food being grown and purchased. South Africans’ lives were affected in positive ways as a direct result of having a credit score. Credit access in South Africa also helped people feel that they still had ways to support their families, even during times of job insecurity.

 

Lulalend

Lulalend is a South African based lending company that aims to help small businesses reach their potential growth levels and caters to what they call small and medium enterprises (SMEs). Founded in 2014, the organization aims to make a difference for businesses “too small to receive credit from traditional commercial banks, yet too large to receive credit from micro-financing businesses.”

Lulalend helped with credit access in South Africa in a major way because the application and review process is so quick. However, it has come with some drawbacks: in a 2015 World Bank report, South Africans were the world’s biggest borrowers and also managing their debt poorly.

 

A Brighter Future

As long as credit providers are willing to work with the borrowers, the economy may become stable enough to support the country without a large market crash. Efforts such as improved credit access are the crucial routes necessary to changing this region’s economic status.

– Nikki Moylan

Photo: Wikimedia Commons