India is an agrarian economy and over 58 percent of the rural households depend on agriculture as their principal means of livelihood. With the recent help of tech giant Microsoft, Indian farmers have begun to use AI to increase efficiency, further encouraging them to harvest a good crop.
Every year since 2013, more than 12,000 suicides have been reported in the agricultural sector with 10 percent accounting for farmer suicides. Collectively, seven states (Maharashtra, Karnataka, Telangana, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Tamil Naidu) accounted for 87.5 percent of the total suicides in the farming sector. Additionally, the reasons for farmers’ suicides have varied widely including high input costs, low yields, disintegration with markets, mounting loans, water crisis and urban consumer-driven economic policies.
In partnership with the International Crop Research Institute for the Semi-Arid Tropics (ICRISAT), Microsoft developed an AI-sowing app. With the app, Indian farmers use AI to increase their agricultural income, giving them greater price control over their crop yields.
On his two-day visit to India in 2017, Microsoft CEO Satya Nadella highlighted the benefits of AI in agriculture. In an interaction with Microsoft engineers in India, Nadella said, “Taking AI to the oldest industry on our planet, agriculture, is something we have already been doing in collaboration with local stakeholders like ICRISAT, which just at a little distance away from the campus. If you can increase the yield [with the help of AI] in agriculture, the kind of impact it will have on economies like India will be huge.”
The beta version of the new sowing application was tested in June 2016 in Kurnool district of the Indian state Andhra Pradesh and was applied only to the groundnut crop. The results showed a 30 percent higher average in yield per hectare. The pilot also confirmed that the advisories received through the app via SMS were relevant and accurate. The sowing app provides the best times to sow depending on weather conditions, soil and other indicators, relieving Indian farmers from inaccurate forecasts.
The app relies on business intelligence tools that give clear insights on the soil health, fertilizer recommendations and seven-day weather forecasts powered by the world’s best available weather observation systems and global forecast models. So far, Indian farmers use AI-powered apps in a few dozen villages in Telangana, Maharashtra and Madhya Pradesh.
Powered by Microsoft Cortana Intelligence Suite, the app provides updates to Indian farmers. Indian farmers use AI for sowing recommendation, seed treatment, optimum sowing depth, preventive weed management, land preparation, farmyard manure application, recommendation on harvesting, shade drying of harvested pods and storage. The SMSs can also be delivered in regional languages like Telugu and Kannada. Through a basic phone capable of receiving text messages, farmers can use AI with no capital expenditure.
Microsoft’s next collaboration could help farmers fight pest risk. In collaboration with India’s largest producer of agrochemicals, United Phosphorous (UPL), Microsoft aims at leveraging AI and machine learning to calculate the risk of pest attack.
But interestingly, Indian farmers are not oblivious to digital farming. In the past, Tata Consultancy Services (TCS) Innovation Labs introduced mKrishi, which allowed farmers to receive advice on pest information, crop prices, weather conditions and more in their local languages.
Tech innovations and partnerships like that of Microsoft and TCS could help Indian farmers with information that is more data-driven and based on pure analytics. Whether such efforts lower the suicidal rates of Indian farmers or not is yet to be seen. But if the results are positive, it will be a boon to many agriculturally reliant Indian households that have faced huge losses.
– Deena Zaidi
Photo: Flickr
How Organizations Are Building Sustainable Agriculture in Lesotho
The Kingdom of Lesotho is a mountainous country in sub-Saharan Africa. Only around 10 percent of lands have agricultural potential, but most of them are degraded. Frequent droughts, irregular rainfall, occasional flooding and the severe climate conditions significantly influence the ability to produce sustainable agriculture in Lesotho.
Due to water and soil erosion, overgrazing and severe land degradation, at the end of 2017, Lesotho needed external food assistance. Extreme weather lowered the annual agricultural productivity. Food security has thus become one of the most crucial issues in Lesotho. In recent years, various international institutions, such as the World Bank, the Food and Agriculture Organization of the United Nations (FAO) and the International Fund for Agricultural Development (IFAD), have been continuously offering help to improve sustainable agriculture in Lesotho.
On Sep. 29, 2017, the World Bank financed Lesotho’s Smallholder Agriculture Development Project with $10 million to develop market output in Lesotho’s agriculture sector. The World Bank and the Global Environment Facility implemented the project in 2011. This project aims to aid smallholder farmers in exploring the agriculture market and boosting productivity.
In an interview with Lesotho Times in October 2017, Mahala Molapo, the Minister of Lesotho Agriculture and Food Security, said Lesotho’s agriculture sector was at a turning point. Molapo said the nation has made a mega-plan, which focuses on the chain process from agricultural input supply to the market. Lesotho would cooperate with different stakeholders to further develop sustainable agriculture in Lesotho.
“The ministry understands that our agricultural sector is vulnerable to the effects of climate change,” Molapo said. “Through our extension services, we will continue working with partners to support climate-smart agriculture.”
In the 1950s, Joseph J. Machobane developed a sustainable agricultural system called the Machobane Farming System (MFS), which is a simple, low-input technique based on an intercropping and localized application of organic manures. In 1991, the FAO incorporated MFS into its two agricultural programs in Lesotho. Under the traditional agricultural system, the general family needs 1.2 hectares to assure food security. Under MFS, however, the average family only needs less than 0.5 hectares to solve food problems.
In December 2004, IFAD implemented the Sustainable Agriculture and Natural Resource Management Program in Lesotho. This program aimed to improve food security and family nutrition, and it has trained farmers in field crop, fodder, pest and disease control and irrigation techniques.
In October 2012, Lesotho suffered a food insecurity crisis, which caused 725,215 people to need food aid. In response to this crisis, the FAO and the Ministry of Agriculture and Food Security launched a three-year cycle program named the Emergency and Resilience Program to promote conservation agriculture and ameliorate nutrition in Lesotho. From 2012 to 2014, this program supported more than 18,500 households.
For next steps, the FAO, IFAD and the World Bank will work to continuously strengthen sustainable agriculture in Lesotho, including:
Sustainable agriculture in Lesotho can be achieved with the persistent efforts of organizations like these. As Molapo says, “We are at a turning point and I believe with hard work, partnerships, strong systems and innovation, the vision of a food-secure Lesotho is within reach.”
– Judy Lu
Photo: Flickr
Projects to Improve Infrastructure in Guinea-Bissau
Since the early 1980s, one of Guinea-Bissau‘s main goals has been to develop and improve its fundamental facilities and services. Some of the needs for successful infrastructure in Guinea-Bissau include improvements to:
Transportation
With 2,734 miles of roads in Guinea-Bissau, only 10 percent are paved. This has attracted foreign aid in the form of sealing the main road to the northern border and constructing a major bridge at Joao Landin.
Guinea-Bissau has many rivers that can be accessed for coastal shipping, but the water transport needs major improvement. Bissau is the main port, and there have been plans for a European Union-sponsored deep-water port that will specialize in minerals and link to Guinea by rail.
Since the elimination of the privatized national airline, Guinea-Bissau has had to rely on foreign-owned carriers. The Guina-Bissau civil war that lasted from June 7, 1998, to May 10, 1999, severely disrupted flights and the main airport reopened in July 1999. In 2000, the country had about 29 airports but only three with paved runways.
Electricity
Guinea-Bissau has one of the lowest electrification rates in Africa. This rate indicates the number of people with electricity access as a percentage of the total population. Electricity is not accessible to a large part of the population, mostly due to corruption and inefficiency. The country is completely dependent on petroleum products, despite its own high energy potential, especially in hydroelectric power.
Telecommunications
The government of Guinea-Bissau announced its intention to liberalize the telecom industry, extend telecommunications to the whole country and introduce a cellular network. The internet access for the network would be provided by the U.S. Agency for International Development (USAID). In 1997, there were 8,000 telephones in the country, and in 2000, there was one internet service provider with about 1,500 internet users. As of July 2016, less than 1 per 100 people in Guinea-Bissau had a fixed phone line, but more than 70 percent of people had a mobile cell phone. The country now has five internet service providers and about 66,000 internet users.
Rehabilitation Projects
The World Bank conducted various projects to improve the infrastructure of Guinea-Bissau. The goal of its Social and Infrastructure Relief Project (SIRP) was to improve job opportunities and financial status for low-income workers through the support of activities with high social and economic benefits. The bank committed $15 million to the project.
Results for the SIRP in Guinea Bissau were satisfactory. There continues to be a need for assistance in the development of more detailed procedures and in fully implementing the introduction of the accounting system.
The purpose of the bank’s Multi-Sector Infrastructure Rehabilitation Project (MIRP) was to improve the access to power, water and road infrastructure services. The World Bank committed $5 million to the project, but the results were not as successful as the SIRP.
Initially, the program leadership expected the private sector to participate and contribute to the energy and water sectors. However, the willingness of the private sector to get involved in a volatile political environment was overestimated and unrealistic. Additionally, there was an imbalance of supervision between project groups.
With continued efforts to improve the infrastructure in Guinea-Bissau, the country is headed for advancement and progress.
– Julia Lee
Photo: Flickr
Remittances to El Salvador Keep Families Out of Poverty
The Trump administration has announced an end to temporary protected status (TPS) for the 200,000 El Salvadoran refugees residing in the U.S. Immigrants have until Sept. 9, 2019, to either obtain a green card or to exit the country. Critics of the policy argue that El Salvador is unable to support an influx of citizens and point to the importance of remittances to El Salvador for the families that depend on this source of income.
Why Refugees Need TPS
El Salvadoran immigrants were granted temporary protected status in 2001 following two devastating earthquakes. Once enrolled in the program, immigrants have access to social security cards and a pathway to legal employment.
TPS status was originally granted to El Salvadoran refugees for only 18 months. However, previous administrations have repeatedly extended the program due to other adverse conditions like poverty and violence, as these have worsened since the earthquakes. For a country not at war, El Salvador has the highest homicide rate in the world: 108 per 100,000 people.
Remittances to El Salvador
El Salvadoran workers send billions of dollars annually back home to their families. These money transfers are called remittances. El Salvador has one of the highest remittance rates in the world.
In 2016, approximately 1.2 million El Salvadoran immigrants lived in the United States. They sent $4.6 billion in remittances back to El Salvador, making up 17 percent of the country’s Gross Domestic Product (GDP). Remittances to El Salvador have a much larger impact on the country’s economy than foreign aid. The United States sent only $88 million in aid to El Salvador in 2016.
According to Manuel Orozco, a political scientist with Washington D.C. think-tank InterAmerican Dialogue, between 80 and 85 percent of El Salvadoran immigrants send money back home. Orozco estimates that the average immigrant sends $4,300 annually. More importantly, Orozco estimates that one in 20 El Salvadoran households depend on remittance for survival.
How Remittances Help Those in Poverty
Remittances to El Salvador often help the poorest families access education, clothing, medicine and financial support for elderly citizens. In 2013, about 33 percent of households receiving remittance were considered poor, while about 46 percent were considered vulnerable. This suggests that remittance payments play an important role in keeping vulnerable households above the poverty line.
Remittances made up about 50 percent of monthly household income for recipients. Remittances constituted an even larger percentage of monthly household income for rural households and female- and elderly-led households.
Additionally, households receiving remittance in 2013 were more likely to have access to running water, bathrooms and electricity than the average household in El Salvador. Rates of home ownership were higher in remittance households than in the average El Salvadoran household.
In 2013, 94 percent of households receiving remittances used part of the money on consumption spending. Remittances increase domestic spending by providing poor families with a greater disposable income. Eliminating this source of revenue has the potential to hurt El Salvadoran businesses and, consequently, the El Salvadoran economy.
According to economist Cesar Villalona, “It’s a cycle. If remittances went down it would plunge people into poverty and reduce spending, which would hurt companies, causing unemployment and hitting government finances.” President Trump’s repeal of temporary protected status for El Salvadoran refugees could have devastating effects on the nation of El Salvador as a whole.
– Katherine Parks
Photo: Flickr
Indian Farmers Use AI to Increase Crop Yields
Every year since 2013, more than 12,000 suicides have been reported in the agricultural sector with 10 percent accounting for farmer suicides. Collectively, seven states (Maharashtra, Karnataka, Telangana, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Tamil Naidu) accounted for 87.5 percent of the total suicides in the farming sector. Additionally, the reasons for farmers’ suicides have varied widely including high input costs, low yields, disintegration with markets, mounting loans, water crisis and urban consumer-driven economic policies.
In partnership with the International Crop Research Institute for the Semi-Arid Tropics (ICRISAT), Microsoft developed an AI-sowing app. With the app, Indian farmers use AI to increase their agricultural income, giving them greater price control over their crop yields.
On his two-day visit to India in 2017, Microsoft CEO Satya Nadella highlighted the benefits of AI in agriculture. In an interaction with Microsoft engineers in India, Nadella said, “Taking AI to the oldest industry on our planet, agriculture, is something we have already been doing in collaboration with local stakeholders like ICRISAT, which just at a little distance away from the campus. If you can increase the yield [with the help of AI] in agriculture, the kind of impact it will have on economies like India will be huge.”
The beta version of the new sowing application was tested in June 2016 in Kurnool district of the Indian state Andhra Pradesh and was applied only to the groundnut crop. The results showed a 30 percent higher average in yield per hectare. The pilot also confirmed that the advisories received through the app via SMS were relevant and accurate. The sowing app provides the best times to sow depending on weather conditions, soil and other indicators, relieving Indian farmers from inaccurate forecasts.
The app relies on business intelligence tools that give clear insights on the soil health, fertilizer recommendations and seven-day weather forecasts powered by the world’s best available weather observation systems and global forecast models. So far, Indian farmers use AI-powered apps in a few dozen villages in Telangana, Maharashtra and Madhya Pradesh.
Powered by Microsoft Cortana Intelligence Suite, the app provides updates to Indian farmers. Indian farmers use AI for sowing recommendation, seed treatment, optimum sowing depth, preventive weed management, land preparation, farmyard manure application, recommendation on harvesting, shade drying of harvested pods and storage. The SMSs can also be delivered in regional languages like Telugu and Kannada. Through a basic phone capable of receiving text messages, farmers can use AI with no capital expenditure.
Microsoft’s next collaboration could help farmers fight pest risk. In collaboration with India’s largest producer of agrochemicals, United Phosphorous (UPL), Microsoft aims at leveraging AI and machine learning to calculate the risk of pest attack.
But interestingly, Indian farmers are not oblivious to digital farming. In the past, Tata Consultancy Services (TCS) Innovation Labs introduced mKrishi, which allowed farmers to receive advice on pest information, crop prices, weather conditions and more in their local languages.
Tech innovations and partnerships like that of Microsoft and TCS could help Indian farmers with information that is more data-driven and based on pure analytics. Whether such efforts lower the suicidal rates of Indian farmers or not is yet to be seen. But if the results are positive, it will be a boon to many agriculturally reliant Indian households that have faced huge losses.
– Deena Zaidi
Photo: Flickr
Addressing the Causes of Poverty in South America
Current events such as protests and political upheavals in Venezuela and Brazil have drawn attention to problems plaguing South America. Some of those problems, having been left unaddressed, have caused higher rates of poverty in Latin and South America. Below are several factors considered to be major causes of poverty in South America at present.
In much of South America, particularly in well-known tourist countries, run-down slums exist next to wealthy urban areas in part due to unequal distribution of economic success. According to the Economic Commission for Latin America and the Caribbean, Latin and South America are the most unequal regions in the world in terms of wealth. Corporations, politicians and unequal opportunities contribute in part to high poverty rates among the majority of the population.In Brazil, wealth being hoarded by the top one or two percent of citizens has contributed to a high number of children living and earning money on the streets because their parents can no longer support them. Despite helpful tourism revenue, poverty rates in certain popular areas of South America rise steadily because of wealth inequality.
In South and Latin America, poverty can become a generational epidemic because of leftover institutions and sentiments from the Casta system. Casta was a complex system of written rules based on racial segregation similar to the Hindu Caste, where people were separated into societal classes based on appearance and ethnic makeup that determined where they could live, who they could marry, what jobs they could work and more. The system was popularized by early white colonialists in the region and the lingering effects of it have been among the causes of poverty in South America.
Honduras, Venezuela, Brazil, Argentina and others have undergone major changes in political leadership in recent months and years, and the lack of clear democratic process in a lot of these countries has been among the causes of poverty in South America. According to the Economist, Brazil and Colombia are set to elect new presidents in the coming months, but “they will do so amongst rising public anger over corruption, amid a plethora of corruption scandals across the region in recent years that have in many cases implicated high-level politicians.”In Peru, for example, President Pedro Pablo Kuczynski narrowly avoided impeachment after it was discovered he had ties to corrupt Brazilian construction company Odebrecht, which has admitted to paying bribes to governments. As has been proven multiple times, corrupt or destabilized governments often prove disastrous for the economies of the countries they oversee, which can only have a negative effect on the poverty level in the country.
In South America, the education gap mirrors the income gap between rich and poor. According to WorldFund, “74 million South Americans (about 12.4 percent of the region’s population) live on less than $2 per day. Over half of them are children. Children in the bottom income quintile complete an average of eight years of school versus over ten years completed by children in the top income quintile.” Access to quality education in South America for those living below the poverty line is incredibly rare and difficult to achieve. WorldFund states that “education investments are inadequate, poorly directed and favor high-income students.”
While conditions in South America are improving, progress in certain areas is slow. Those living in poverty in South America are often directly affected by the factors above. The introduction of more efficient and generous international aid programs to people in the region that need it is becoming more and more essential to help combat some of the causes of poverty in South America.
– Arianna Smith
Photo: Flickr
Forging the Fight Against Malnutrition in South Sudan
Among the displaced, about 65 percent are children under the age of 18. About 19,000 children were recruited into militias, according to a UNICEF press release. The enduring violence has disrupted the economy, education system and healthcare and has caused severe malnutrition in South Sudan.
According to the UNICEF press release, more than one million children, which is more than half of the youth population in South Sudan, suffer from acute malnourishment. With no real progress in sight, malnutrition is expected to worsen in the coming year.
“In early 2018, half of the population will be reliant on emergency food aid. The next lean season beginning in March is likely again to see famine conditions in several locations across the country,” said the Emergency Relief Coordinator for the United Nations Office for the Coordination of Humanitarian Affairs (OCHA) Mark Lowcock to the OCHA security council.
Causes of Malnutrition in South Sudan
Besides flooding, which has displaced more than 100,000 people, the primary suspect causing malnutrition in South Sudan is the ongoing conflict. Destroying villages and separating families, the violence has created devastating consequences for the citizens of the African nation.
The threat of being killed or recruited into militias has forced millions from their homes and away from their farms. Now living in crowded refugee camps, and with a decrease in crop production, thousands of people are almost entirely reliant on humanitarian aid.
Not only does the violence cause millions to seek refuge and halt crop production, it also prevents humanitarian aid from reaching much-needed parts of South Sudan that suffer from food insecurity. According to OCHA, humanitarian aid will not be entirely successful until the conflict ends and allows organizations like UNICEF and the International Rescue Committee access to the malnourished people of South Sudan.
Thus far, 95 aid workers killed in South Sudan, 25 of which were killed in 2017. These unfortunate acts are the ones that hinder NGOs and other organizations’ abilities to send aid.
Aid Contributions
UNICEF has treated more than 600,000 people in South Sudan for malnutrition and aims to give about $183 million in aid during 2018. Furthermore, the World Bank’s South Sudan Emergency Food and Nutrition Security Project plans on giving about $50 million to help supply food and assist farmers in increasing their crop yield. Finally, the International Rescue Committee has helped in South Sudan by establishing clinics focused on addressing health-related issues, including malnutrition.
While these organizations and others are fighting malnutrition in South Sudan, violence has greatly affected their ability to assist. Constant warfare has left villages and farms deteriorated and has strained the already limited amount of food.
Filippo Grandi, the U.N. High Commissioner for Refugees, voiced his concern for the future of South Sudan when he and Lowcock initiated an appeal for an additional $1.5 billion in funding to combat the worsening conditions in South Sudan.
“The conflict is purging South Sudan of the people who should be the greatest resource of a young nation. They should be building the country, not fleeing it,” Grandi said. “For as long as the people of South Sudan await peace, the world must come to their aid.”
– Austin Stoltzfus
Photo: Flickr
Swat Valley School Improves Education for Girls in Pakistan
Farah Mohamed, CEO of the Malala Fund, and Mariam Al Hammadi, the Director of the Big Heart Foundation, signed an agreement regarding the school in Oxford, London. In attendance at the signing was Malala Yousafzai and Sheikh Sultan bin Ahmed Al Qasimi, the Big Heart Foundation’s Humanitarian Envoy.
Financing for the School
The Big Heart Foundation donated $70,000 to the school and agreed to pay for the school’s operational needs such as medical, security expenses, transportation, uniforms, staff salary and books. The Big Heart Foundation plans to finance the school’s first two years with these funds. The school will be located in Swat Valley, which is the hometown of Malala Yousafzai, the founder of the Malala Fund.
Malala Yousafzai commented on the donation, saying, “I overwhelming thank the Big Heart Foundation for believing in my dream of a world where girls can choose their own future path. With their support, the Malala Fund can provide education for girls in my hometown, Swat Valley in Pakistan.”
Pakistan’s Education System
The creation of this school is a small but essential step in improving tragically low literacy and education levels in Pakistan’s lagging school system. As of 2015, there were about 3,309,514 young girls not enrolled in school. This does not include the other 2,902,032 adolescent women who were also not enrolled. In 2014, the illiterate population for women who were 15 and older was over 32,000,000.
Pakistan’s primary education school has been characterized as one of the most underdeveloped programs. Only 60 percent of its children complete their education through the fifth grade, while the others drop out for various reasons. Additionally, only 8 percent of Pakistan’s population has the qualifying grades to receive a tertiary education.
The Contributors
The Big Heart Foundation was created in May of 2015 by Her Highness Sheikha Jawaher bin Mohammed Al Qasimi. The organization’s goal is to provide needed humanitarian support from the United Arab Emirates (UAE). Its primary aim is to help vulnerable families and children who live outside of the UAE, such as Jordan, Iraq, Syria, Lebanon and others. It hopes to provide safe and secure environments to families and children in need, help increase the cooperation between local and regional government and help improve financial support.
The Malala Fund was founded in 2013 by Malala Yousafzai along with her father. This organization campaigns the idea that every girl has the right to 12 years of free and safe education. It believes that “girls are the best investment in future peace and prosperity of our world.”
Thanks to these two important organizations, in the near future, education for girls in Pakistan will finally be provided. Though education for girls in Pakistan is in dire need of improvement, this school is a vital, beneficial and necessary step.
– Cassidy Dyce
Photo: Flickr
The Hidden Reality of Poverty in Japan
As the nation with the third largest economy in the world, it is easy to assume that poverty in Japan does not exist. However, one in six Japanese people is living in relative poverty. Many believe this is due to incomes dropping and the number of single-mother households increasing, which often consists of low-paying and sporadic employment. In 2014, child poverty rates in Japan hit a record high. Poverty within the country needs to be addressed, even if it’s less extreme than in other areas.
Children’s Cafeterias
In early 2017, the number of children living in poverty in Japan was estimated to be around 3.5 million. With such numbers rising, a children’s cafeteria named Kawaguchi was created in Tokyo as a place for children to socialize and have what is often times their only proper meal of the day. Kawaguchi survives strictly on cash donations from local businesses, and the food is donated by farmers and some participating families. There are around 50 children who eat there monthly, and about a third of them come from struggling single-parent households.
Like Kawaguchi, hundreds of similar cafeterias have been created throughout Japan to help with poverty issues. Although a law was passed in 2013 in regards to child poverty, sources say programs helping these children lack funding and support.
A proven difficulty in Japan is taking the poverty issue seriously, and the realities of poverty are often hidden for fear of being seen as disadvantaged. With social expectations in Japan, families often make extreme efforts to get their children everything they need to participate in expensive school activities and ensure they look well dressed. In doing this, the families often have to cut down on food.
Finding Children in Need
In addition to cafeterias for children, Japanese nonprofits have created interest-free loans for students who need extra help. An organization called The Nippon Foundation opened a facility where up to 20 children at an elementary age can go between 2 p.m. and 9 p.m. to relax, study and have a hot meal. The foundation plans to expand to allow 100 children by 2020.
Because poverty in Japan proves to be somewhat of a taboo, The Nippon Foundation understands that people may not ask for help, even when they desperately need it. So, the foundation focuses a lot of its efforts on outreach and finding children who need this kind of help.
With Japan being such a successful and economically advanced nation, poverty within its boundaries is often overlooked and misunderstood. Because of this, it is essential to understand that aid projects need to be put in place, just like in other struggling countries. Japan is a prime example that poverty can exist in wealthy countries. Assistance programs like children cafeterias and nonprofits not only help alleviate poverty in Japan, but they also spread the message that more needs to be done to help these people, especially children, who are living in poverty.
– McCall Robison
Photo: Flickr
Credit Access in Belarus
The Belarus economy struggles primarily with financial inclusion. This means that although the Belarusian economy has the financial infrastructure in place to offer people financial products, many people do not take advantage of them. Surveys have indicated that this is primarily due to low levels of financial literacy in Belarus, as well as the financial system’s inability to reach people in rural areas as easily as their urban counterparts. However, some of the results have indicated that Belarusian banks just do not lend liberally enough to ensure full credit access in Belarus.
International Involvement
This is where the international community can and does step in. Belarus is a country that stands to benefit from greater access to microloans, which are often provided by international actors such as the U.S. Agency for International Development (USAID) and the European Union.
The European Investment Bank (EIB) is currently contemplating a major contribution to improving credit access in Belarus. The EIB is considering providing the equivalent of a $100 million credit line for small and medium-sized enterprises. This line of credit will be used in conjunction with loans provided by Belarusian banks. The EIB funds are to be used to provide half of the financing requested by borrowers, with the World Bank, the European Bank for Reconstruction and Development, or local banks covering the rest. The EIB loans also come with a five year grace period during which no payments are due on the principal of the loan.
Making this financing available will greatly improve credit access in Belarus for would-be business owners and will enable many more people to start their own businesses. This project is notable because it will prioritize making capital available to those wishing to use it for projects that will promote broader economic development.
Financial History
Steps are also being taken to improve financial literacy along with credit access in Belarus. USAID is working with local nonprofits who provide microloans to organize training for borrowers to ensure that they understand the terms of their loans and are able to pay them back.
Additionally, the Belarusian credit registry has recently moved to give all Belarusians access to their credit reports via the internet. Previously, this information was only available to customers of one particular bank. Now, any Belarusian is entitled to view their credit report once a year free of charge. People can view their report additional times for a nominal fee.
Giving people greater access to their credit history is a major accomplishment and has the potential to promote greater credit access in Belarus. It can encourage more people to engage with the financial system and give them a clearer picture of where they stand, enabling them to make informed decisions about their finances. With increased financial knowledge, people could potentially be encouraged to take out loans they previously would not have thought themselves eligible for. All of this, in turn, will generate more economic activity.
Belarus is an emerging market that will benefit greatly from improved credit access. Ensuring full credit access is an easy way to promote economic development and improve quality of life. Thanks to both local and international actors, Belarus is making major strides in this area.
– Michaela Downey
Photo: Flickr
US Benefits from Foreign Aid to Colombia
For more than 50 years, Colombia was ravaged by war and struggled to reach an agreement of peace that suited both warring parties. This caused the country to be caught in ongoing and seemingly never-ending turmoil. The war impacted millions of citizens in the country and took the lives of more than 220,000 people.
Plan Colombia
In 2016, the U.S. helped Colombia reach a peace agreement with the country’s largest guerrilla group, the Revolutionary Armed Forces of Colombia (FARC). The peace treaty was a culmination of years of hard work for both Colombia and the U.S., who has been working with Colombia to strengthen its military since 2000. The peace agreement has led to nearly 6,900 members of FARC putting down their guns and relocating to the demobilization zones put in place by the U.N. for the former soldiers in the war.
The peace agreement was known as “Plan Colombia,” and it resulted in many U.S. benefits from foreign aid to Colombia. The plan increased U.S. military and diplomatic support from the citizens of the country.
Colombian Agency for Reintegration
The U.S. has helped Colombia garner peace, increasing military support in the U.S. in the process. The end of the war has prompted the Colombian government, with the help of the U.S., to start an Agency for Reintegration (ACR) in the country. The program is for the millions of people displaced by the war, as well as the soldiers that fought.
The ACR’s efforts include providing healthcare, employment opportunities, education and vocational training for the former soldiers as they transition back into society. Counting the soldiers and their families, almost 30,000 Colombians are in need of assistance and are receiving aid from the ACR.
Giving aid to foreign countries can reflect positively on the U.S. and can help other countries in need. With support from the U.S., Colombia has ended its civil war and has begun to reintegrate members of the war into society. In response to the aid given to Colombia, the U.S. benefits from raised support for the military and increased diplomatic support.
– Simone Williams
Photo: Flickr