In Kabul, Afghanistan in 1929, a charitable foundation was created by philanthropists to aid the victims of domestic disasters. This organization would go on to become the Red Crescent Society of Afghanistan in 1934, and officially was recognized in 1951 by a declaration by the King.
The Red Cross Society of Afghanistan
Similar to all Red Crescent and Red Cross organizations around the world, the Red Cross Society of Afghanistan works to accomplish its goals by the Seven Universal Principles proclaimed in Vienna in 1956: humanity, impartiality, neutrality, independence, volunteer service, unity and universality. These principles were adopted based on the experience of aid workers of the time. Although challenging, these principles have helped the Red Crescent Society of Afghanistan claim many accomplishments in its years of active service.
The Red Crescent Society of Afghanistan is organized into five different departments:
- Disaster Management
- Health Services
- Organizational Development
- International Relations
- Financial, Legal, and Gender
In addition, the Red Crescent Society of Afghanistan also has three special issue groups:
- Frostbite prevention
- Marastoon
- Poor houses
All eight departments work to tackle prominent recurring issues throughout the country.
Combatting the Elements
For example, the frostbite prevention group provides detailed advice on their website about how to prevent frostbite and how to handle a case of frostbite. Frostbite may sound like an odd injury to receive in Afghanistan (as many people picture the country as strictly a mountainous desert) but nighttime temperatures can drop significantly in a desert due to the lack of moisture to retain heat; in addition, average temperature can drop quickly as elevation increases.
Temperature is not the only environmental hazard that the people in Afghanistan must deal with — earthquakes also often strike Afghanistan. In 2015, a 7.5 magnitude earthquake shook the Hindu Kush Mountains; in Afghanistan, 77 people were killed by the earthquake and 2000 more were injured. The Red Crescent Society of Afghanistan responded with volunteers to aid the injured and rebuild infrastructure.
Heavy snowfall must also be contented in the Hindu Kush Mountains as it causes avalanches and detrimental aftermath. In 2015, heavy snowfall and rain caused flooding, avalanches and mudslides in 22 provinces in Afghanistan, killing over 200 people and damaging over 600 homes. During and after the precipitation, Red Crescent members handed out foodstuffs along with blankets and heaters to those in need. In true fashion of the Red Cross Red Crescent Society, other Red Crescent Societies delivered aid and volunteers to Afghanistan.
Partnerships for Change
Cooperation between Red Cross Red Crescent Societies around the world is not uncommon, and the 2015 aid to Afghanistan is not the first time the Red Crescent Society of Afghanistan worked with a partner. In 2013, the Red Cross Society of Canada and the Red Crescent Society of Afghanistan launched a mission of cooperation.
The collaboration’s main goal was to mitigate the damages caused by common natural disasters in Afghanistan, and this arrangement lasted until 2017. The Red Cross and Red Crescent societies would work with the Afghan National Disaster Management Authority to improve the government capability to deal with natural disasters. Technology, money, and advanced planning techniques would be shared by the Canadians, who in turn would learn much from their Afghan cohorts.
The Red Crescent Society of Afghanistan took over the operation and funding of the Marastoons (orphanages and poor houses), from the Afghan government in 1961. In 2015, over 1000 individuals lived in these Marastoons. Aside from providing safe housing for individuals, the Marastoons also help to provide, food, education, job training and other health services.
For example, the Red Crescent Society of Afghanistan helped to construct a high-school at the Marastoon in Kabul. The school was eventually recognized and accredited by the Afghan government, and now provides math, religion, English and computer courses to those who can attend.
Debunking Social Stigmas
In 2013, the Red Crescent Society of Afghanistan opened their Gender department. Its goal is to implement gender-sensitive education programs within the organization and the national population of Afghanistan. This is an important issue facing a conservative country, and it’s estimated that there are over one million widows in Afghanistan due to the ongoing war.
Often social stigmas prevent widows from returning to a normal life after the loss of a husband, and these “norms” sometimes relegate this population to second-class citizenship. On March 11, 2018, the Red Crescent Society of Afghanistan celebrated International Women’s Day, in solidarity with other countries in the international community.
More Work to Be Done
The President of the Red Crescent Society of Afghanistan gave a speech. In his speech, he marked the increasing education level of women in Afghanistan and professional training but also said that there is still work to be done; as a result, the Red Crescent Society will continue to work to further women’s rights in Afghanistan. The Red Crescent Society of Afghanistan and the International Red Cross Red Crescent Movement recognize women’s rights as human rights.
The ongoing conflict in Afghanistan affects people at all levels of society throughout all of the provinces of Afghanistan. This combined with rampant corruption and tribal conflicts make aid work difficult in the country. Hopefully continued work by the Red Crescent Society of Afghanistan and those around the world will help mitigate the effects of these issues on certain populations.
– Nick DeMarco
Photo: Flickr
Alipay a Model for the Gamification of Philanthropy
Alipay, China’s largest third-party online payment platform, has reshaped the landscape of payment services in China for the last decade. At present, Alipay has a user base of 520 million people, handles more than 170 million transactions per day and accounts for more than two-thirds of mobile payments in China.
Credit card use only has about 400 million patrons. Alipay rules China’s mobile payment market with absolute authority. A Forbes article claims that “cash really is becoming a thing of the past” because a “smartphone (with Alipay) will do nicely”.
Such immense popularity of the platform opened the door to the utilization of its unprecedented user-engagement for social good. Ant Farm came into being, representing the balance between marketing strategy and fulfillment of social responsibility.
Ant Farm is a pre-installed online game program inside the Alipay mobile phone application, in which users keep a virtual chicken as a pet. Through daily payments via Alipay users can feed their chicken and collect hearts to be donated to charity projects.
The parent company of Alipay and Ant Farm, Ant Financial, is working closely with governmental offices like Jiangsu Sihong Poverty Alleviation Office and more than 1,200 charity organizations. According its 2016 Corporate Social Responsibility Report, Ant Financial’s philanthropy platform has raised more than $140 million for the services provided to its partner nonprofits.
On top of the basic construct, developers have added many interactive mechanisms to boost Ant Farm’s participation. For example, playing with the pet chicken can also generate hearts and users can interact with their friends’ farms. Eventually, more and more users are engaged, funding more and more philanthropic projects.
Ant Farm is a successful model of the gamification of philanthropy, attracting hundreds of thousands of people to take part in charity projects, which is much more efficient and larger in scale than traditional models of philanthropic fundraising like donation boxes. In addition, by implementing the basic elements of an online game, Ant Farm has more charm than other heavy-hearted fundraising strategies.
Other companies have also engaged in social projects through gamification of philanthropy. Tencent, one of China’s internet and technology giants, has also cooperated with nonprofits working to provide education for left-behind children in impoverished regions by creating donation venues in its online games. In certain Tencent games, users can donate their equipment in exchange for reward or recognition.
Tencent Foundation chairman Guo Kaitian believes that with the help of online platforms like Ant Farm, “charity is now everywhere around us, and it is now the life attitude with innovation and participation”.
– Chaorong Wang
Photo: Flickr
Developing Education in Niger
Niger is one of the least developed countries in the world, ranking last out of 187 countries on the Human Development Index. Education in Niger is affected by the country’s struggling economy.
With a gross national income of just $641 per capita, roughly 60 percent of Niger‘s population lives under the poverty line. One of the many causes for the country’s poverty is a high birth rate. As more children are born, more food is needed, but as more food is needed the area of arable land shrinks. Food becomes a daily difficulty for families and other necessities are overshadowed, including education.
Education in Niger
Niger’s population is 70 percent illiterate and the average length of time a student is enrolled in a school is only one year. Fortunately, this situation has not been overlooked as the Nigerien government and other global organizations have come to the table with several programs and other plans to address this issue.
The Nigerien government has partnered its own Niger Threshold Program with the Millennium Challenge Corporation to reduce corruption, promote land titling, register more businesses and improve girls’ educational outcomes.
This cooperation led to the involvement of the U.S. Agency for International Development and the development of the Niger Education and Community Strengthening (NECS) program. The goal of this program is to improve educational opportunities for children while fostering links between the state and local communities. NECS is to be implanted in 150 villages across the seven regions of Niger.
Planning for Improvement
The government has also implemented an education and training sector plan that began in 2014 and will go through 2024. The plan outlines the priorities for education in Niger:
Accessibility for Children
Children are still more often forced to work rather than attend school. This is especially true during harvest periods and in the northern regions of the country where nomadic children have no access to school at all. To further increase literacy and education in Niger, schooling has been made compulsory for children seven to 15 years of age. However, attendance rates remain low, particularly for girls.
There are no complete and detailed statistics that showcase the number of schools, colleges, universities, teachers and students in the country. However, this data is not necessary to understand that education in Niger is still fundamentally lacking. Through the prudent programs and priorities of the Nigerien government, and from the help of global partners, education in Niger is certainly on its way to development.
– Aaron Stein
Photo: Flickr
How the US Benefits From Foreign Aid to Morocco
Morocco is an African country full of vibrant colors and vast potential. The U.S. has a planned budget of $15.9 million for Moroccan foreign aid in 2019. This money is spent advancing the U.S.’s development goals in Morocco, which include: maintaining peace and security, democracy, human rights and governance, economic development, education and social services within the country. So what are the U.S. benefits from foreign aid to Morocco?
U.S. Benefits from Foreign Aid to Morocco: Security
First, and arguably the most important of the U.S. benefits from foreign aid to Morocco, comes from the increase of security. By sending foreign aid to Morocco, the U.S. minimizes terrorist threats in the country. More than $8 million will be spent on counter-terrorism efforts, combating weapons of mass destruction, stabilization operations and security sector reform. While Morocco might seem distant, its security is of importance to the U.S.
The U.S. actively works to fight terrorism and combat extremist groups throughout the globe. Sending foreign aid to Morocco is one way to continue fighting terrorism. Foreign aid in Morocco is also sent to benefit democracy, human rights and governance. The Department of State breaks this into two spending categories: Rule of Law and Human Rights and Good Governance.
U.S. Benefits from Foreign Aid to Morocco: Economy
The aid that is sent in an effort to support good governance works to increase public participation and enforcement of the separation of powers through a checks and balances system. Keeping Morocco (and any country for that matter) politically stable and transparent benefits the U.S. ethically, economically and politically.
Economically, the Department of State has allocated $2.5 million in 2019 for economic development in Morocco. This aid aims to improve policies, laws and regulations within the private sector in an effort to give Morocco the ability to compete nationally and internationally. This improves trade and international policies for all states involved, including the U.S.
U.S. Benefits from Foreign Aid to Morocco: Education
Lastly, the U.S. benefits from foreign aid to Morocco by improving Moroccan education and social services. Education, as a universal human right, should be ensured in every nation and benefits the entire world. Education is crucial in improving economic stability and increasing annual gross domestic product within a country. Within the U.S., education has been an important part of the country’s foreign assistance strategy for decades.
The U.S. benefits from foreign aid to Morocco by supporting peace and stability within their security efforts, advocating for good governance ethically, advancing trade and international policies economically and by improving education and social service strategies.
– Haley Hine
Photo: Pxhere
10 Facts About Poverty in Syria
Since the beginning of the crisis in 2011, poverty in Syria has dramatically increased due to violence and a collapsed economy. Below are 10 facts about poverty in Syria.
These facts about poverty in Syria illustrate the need for more help. Humanitarian organizations are struggling to meet the needs that continue to grow. In 2017, $4.6 billion was required to give emergency support and stabilization to families throughout the region. Only half was received. To build resilience against poverty in Syria and to increase peaceful communities, it is essential to increase funding.
– Anne-Marie Maher
Photo: Flickr
How the US Benefits from Foreign Aid to Tanzania
The U.S. government is Tanzania’s largest bilateral donor, with Tanzania being a recipient of numerous presidential initiatives, including the President’s Emergency Fund for AIDS Relief, the President’s Malaria Initiative, the Sustainable Financing Initiative, Power Africa, Trade Africa, Feed the Future, the Global Climate Change Initiative and Let Girls Learn. From these developments, the U.S. benefits from foreign aid to Tanzania in a number of ways. The implementation and successes of these programs have been widespread, with notable relational improvements building.
The U.S. Benefits from Stability and Security
The U.S. benefits from foreign aid to Tanzania can be seen through continued commitment to strengthening Tanzania’s democracy. After U.S. officials described the country as a model of democracy in East Africa, the countries’ relationship suffered during Tanzania’s 2015 elections, which revealed a decidedly undemocratic streak. Responses to the electoral crisis included an indefinite suspension of the Millennium Challenge Corporation and a meeting between U.S. ambassador Mark Childress and Tanzanian president John Magufuli. The meeting concluded with a reaffirmation of the countries’ strong partnership and a promise for continued investment of $400 million annually in development assistance, with more money being aimed at supporting the ruling party’s development plans.
The promotion of democracy within Africa has always been a professed commitment of the U.S., with repeated stress that support for democracy and inclusive governance has a place of pride among its interests and engagement in Africa. By aiding Tanzania in the stabilization of its democracy, the U.S. hopes to avoid violent extremism and militancy. It has been generally accepted wisdom in Washington that an enduring sense of injustice and political marginalization are powerful drivers of such extremism.
Further U.S. benefits from foreign aid to Tanzania can be seen with the growth of military-to-military relations. These ties now include capacity building and training in coastal water surveillance, international peacekeeping, military health and humanitarian projects. The U.S. Africa Command, in collaboration with other U.S. agencies, has supported the U.S.-Tanzania Canine Detection Program, an elite unit of U.S. Customs and Border Protection-trained Tanzanian Police Force handlers who work to detect ivory and narcotics at Tanzania’s ports of entry. Through the securitization of customs and borders, both countries are able to help end this illegal trafficking.
U.S. Benefits from Foreign Aid to Tanzania Include Economic Growth
Benefits from aid can also be seen in bilateral economic relations, most importantly Tanzania’s exports to the U.S. Under the African Growth and Opportunity Act, which offers tangible incentives for African countries to continue their efforts to open their economies and build free markets, Tanzania is eligible for preferential trade benefits. Exports are primarily agricultural commodities, minerals and textiles, while imports from the U.S. include items such as wheat, agricultural/transport equipment, chemicals, used clothes and machinery.
Strong trade relations between the U.S. and Tanzania have resulted in mutual economic benefits and have left both countries better off. Gains from aid to Tanzania by the U.S. are extensive and visible. Through aid, Tanzania has been able to become a more well-rounded country and the U.S. has been able to strengthen relations and improve its economic and security position.
– Ashley Quigley
Photo: Flickr
Three Simple Tools to Solve Farmer Poverty
Experts believe there are three simple tools to solve farmer poverty. These are:
How to Best Address the World’s Current Needs
The world is struggling to meet the demands of consistently rising rates of population and consumption There are only two alternatives to meet this increasing demand and multiply production: either dedicate more forest land to farming or increase the efficiency and productivity of the existing farmland.
Increasing land use is an inefficient short-term solution that is also detrimental to the environment, whereas the latter option can be achieved as an enduring solution. The most simple and proven way to produce a greater volume of crops from existing farmlands is through the use of hybrid seeds.
Using Hybrid Seeds as Tools to Solve Farmer Poverty
Hybrid seeds are one of the three simple tools to solve farmer poverty. Using a hybrid can yield a product that has the benefits of both its parents; for example, improved resistance toward disease from one and climate tolerance and high yield from the other. Several agricultural experiments in Africa, South America and South Asia have successfully proven the effectiveness of hybrid seeds in multiplying the crop production.
In rural Kenya, a farmer support initiative called One Acre Fund reported an average gain of 65 percent in farmer income using hybrid maize seeds along with microdoses of fertilizers in 2017 alone. Several farmers reported that they doubled or tripled their produce.
Skill Training as the Second Solution to Farmer Poverty
One of the other two tools to solve farmer poverty is skill training. Providing skill training to farmers can help them navigate their lives out of poverty’s vicious circle. Skill training can range from simple things like seed spacing or the right amount of irrigation to more advanced cultivation techniques; for example, sustainable agricultural practices and innovative cross-pollination methods.
In March, the Indian government’s Ministries of Agriculture and Skill Development signed an agreement to impart training and skill development to farmers at 690 Krishi Vigyan Kendras (farming science centers) all over the country. The scheme aims to double the farmer income.
Solving Farmer Poverty Through Microloans
The third one among the three simple tools to solve farmer poverty is microloans. As the name suggests, a microloan is a small amount of money borrowed from a bank or a local financial institution. Microloans are an essential key to solve poverty due to a small principal amount ($2 – $500), small monthly installments (only a few cents), flexible tenure (12 to 60 months) and a low-interest rate (12 – 20 percent).
Startups like Branch and LendUp are helping farmers in developing countries to borrow money using their mobile phones. Branch charges 15 percent interest on a loan as low as $2 at the end of a month. It never charges an overdraft fee and employs 100 employees in San Francisco, Lagos and Nairobi.
Though they appear to be small changes, these three simple tools to solve farmer poverty can change the world sooner than it might seem.
– Himja Sethi
Photo: Flickr
Ongoing Progress and Conflict: The Red Crescent Society of Afghanistan
The Red Cross Society of Afghanistan
Similar to all Red Crescent and Red Cross organizations around the world, the Red Cross Society of Afghanistan works to accomplish its goals by the Seven Universal Principles proclaimed in Vienna in 1956: humanity, impartiality, neutrality, independence, volunteer service, unity and universality. These principles were adopted based on the experience of aid workers of the time. Although challenging, these principles have helped the Red Crescent Society of Afghanistan claim many accomplishments in its years of active service.
The Red Crescent Society of Afghanistan is organized into five different departments:
In addition, the Red Crescent Society of Afghanistan also has three special issue groups:
All eight departments work to tackle prominent recurring issues throughout the country.
Combatting the Elements
For example, the frostbite prevention group provides detailed advice on their website about how to prevent frostbite and how to handle a case of frostbite. Frostbite may sound like an odd injury to receive in Afghanistan (as many people picture the country as strictly a mountainous desert) but nighttime temperatures can drop significantly in a desert due to the lack of moisture to retain heat; in addition, average temperature can drop quickly as elevation increases.
Temperature is not the only environmental hazard that the people in Afghanistan must deal with — earthquakes also often strike Afghanistan. In 2015, a 7.5 magnitude earthquake shook the Hindu Kush Mountains; in Afghanistan, 77 people were killed by the earthquake and 2000 more were injured. The Red Crescent Society of Afghanistan responded with volunteers to aid the injured and rebuild infrastructure.
Heavy snowfall must also be contented in the Hindu Kush Mountains as it causes avalanches and detrimental aftermath. In 2015, heavy snowfall and rain caused flooding, avalanches and mudslides in 22 provinces in Afghanistan, killing over 200 people and damaging over 600 homes. During and after the precipitation, Red Crescent members handed out foodstuffs along with blankets and heaters to those in need. In true fashion of the Red Cross Red Crescent Society, other Red Crescent Societies delivered aid and volunteers to Afghanistan.
Partnerships for Change
Cooperation between Red Cross Red Crescent Societies around the world is not uncommon, and the 2015 aid to Afghanistan is not the first time the Red Crescent Society of Afghanistan worked with a partner. In 2013, the Red Cross Society of Canada and the Red Crescent Society of Afghanistan launched a mission of cooperation.
The collaboration’s main goal was to mitigate the damages caused by common natural disasters in Afghanistan, and this arrangement lasted until 2017. The Red Cross and Red Crescent societies would work with the Afghan National Disaster Management Authority to improve the government capability to deal with natural disasters. Technology, money, and advanced planning techniques would be shared by the Canadians, who in turn would learn much from their Afghan cohorts.
The Red Crescent Society of Afghanistan took over the operation and funding of the Marastoons (orphanages and poor houses), from the Afghan government in 1961. In 2015, over 1000 individuals lived in these Marastoons. Aside from providing safe housing for individuals, the Marastoons also help to provide, food, education, job training and other health services.
For example, the Red Crescent Society of Afghanistan helped to construct a high-school at the Marastoon in Kabul. The school was eventually recognized and accredited by the Afghan government, and now provides math, religion, English and computer courses to those who can attend.
Debunking Social Stigmas
In 2013, the Red Crescent Society of Afghanistan opened their Gender department. Its goal is to implement gender-sensitive education programs within the organization and the national population of Afghanistan. This is an important issue facing a conservative country, and it’s estimated that there are over one million widows in Afghanistan due to the ongoing war.
Often social stigmas prevent widows from returning to a normal life after the loss of a husband, and these “norms” sometimes relegate this population to second-class citizenship. On March 11, 2018, the Red Crescent Society of Afghanistan celebrated International Women’s Day, in solidarity with other countries in the international community.
More Work to Be Done
The President of the Red Crescent Society of Afghanistan gave a speech. In his speech, he marked the increasing education level of women in Afghanistan and professional training but also said that there is still work to be done; as a result, the Red Crescent Society will continue to work to further women’s rights in Afghanistan. The Red Crescent Society of Afghanistan and the International Red Cross Red Crescent Movement recognize women’s rights as human rights.
The ongoing conflict in Afghanistan affects people at all levels of society throughout all of the provinces of Afghanistan. This combined with rampant corruption and tribal conflicts make aid work difficult in the country. Hopefully continued work by the Red Crescent Society of Afghanistan and those around the world will help mitigate the effects of these issues on certain populations.
– Nick DeMarco
Photo: Flickr
How the Media Misrepresents Turkey and Its Aid Programs
While the negative topics rightly deserve coverage, how the media misrepresents Turkey is quite simple: it ignores the nation’s positive undertakings. Whether it be providing foreign aid or housing millions of refugees, there are still a lot of productive developments in the country.
Turkey’s Refugee Population
A considerable struggle for Turkey in the media has been the spillover from the Syrian Civil War. Much of the blame for the poor handling of the refugee crisis has been placed on Turkey. What is overlooked is that Turkey shelters more than 3.9 million people, more than any other country in the world.
As opposed to the traditional camp route, when faced with the problem at home, Turkey decided to let displaced people move freely throughout the country. While this allows for greater freedom, job prospects are still uncertain.
Still, the opportunity to work is a blessing for many Syrian refugees. Zaki Nashed, a recent college graduate from Aleppo who has been living in Istanbul with his brother for more than a year, told The Borgen Project: “I just want to live a normal life. The jobs don’t pay well, but in Aleppo, there are no jobs now. In Lebanon, I cannot work. Here, it’s tough, but here, I have a life.”
Turkish Support for the Rohingya
Turkey’s humanitarian efforts go beyond its borders. One such effort deals with the Rohingya crisis, a widely publicized situation. While NGOs and Bangladesh receive praise for their work with the Rohingya (and rightly so), the media misrepresents Turkey by failing to mention that the Eurasian republic foots much of the bill.
In January, the Turkish government pledged $50 million in support of the Rohingya people to build medium-term shelters for 100,000 people and develop drinking water wells and a sanitation system, as well as building field hospitals and family medical centers.
Critics of the Turkish government claim the donations are symbolic or political. But the intangible benefits of Turkey’s involvement in Bangladesh are best construed through another project at the camps: the construction of the only playground for Rohingya children.
Turkish Aid in Somalia
Turkey’s help reaches beyond South Asia. The nation is heavily involved in Somalia, a country frequently plagued by drought and famine due to soaring temperatures. Helping this struggling country is a daunting task when Somalia’s unstable central government is taken into consideration.
To combat this, countries and organizations look for a hybrid approach to aid and develop Somalia. The media misrepresents Turkey here by portraying this involvement as a pure money grab for companies in Turkey. But the full story is more complicated, as it is a prime example of a mutually beneficial relationship between two countries, combining government aid and private investment in impoverished nations.
The Turkish Red Crescent (their Red Cross) managed the Rajo refugee camp in Mogadishu, which accommodated more than 29,000 people at its peak. At the same time, Turkish companies managed the Mogadishu airport and built a new terminal and tarmacs, while both private companies and the government invested heavily in infrastructure projects that led to the construction of new roads and hospitals.
These companies obviously see a profit, but the net effects of introducing employment and driving down costs with competition still greatly benefit the Somali people.
Why It Matters That the Media Misrepresents Turkey
It is without question that Turkey is a complicated country politically. But focusing only on the negative aspects disregards all the beneficial work that is being done.
Whether it is providing shelter for some of the most victimized groups in the world, or implementing revolutionary strategies to lift continually beleaguered countries out of poverty, Turkey delivers assistance that has saved millions of lives. Instead of focusing solely on dismissive depictions of Turkey in the media, take into account that world peace and eliminating global poverty are important goals, and sometimes the keys can be found in unlikely places.
– David Jaques
Photo: Flickr
Credit Access in the Central African Republic Shows Signs of Progress
Obstacles to Credit Access in the Central African Republic
Making Finance Work for Africa (MFW4A) states that the weaknesses in the CAR’s financial sector have held back its economy, as it contributes only 17.6 percent to the country’s GDP. The inadequacy of services also makes it difficult for people to access loans or other banking services that could be helpful in their businesses or personal lives. To help the CAR’s citizens improve their quality of life, increased credit access in the Central African Republic is crucial.
CAR’s financial services have been relatively stable, but the sector is considered fragile due to deficient bank loan portfolios and inactive loans, known as non-performing loans (NPLs), which account for 30 percent of all loans in the CAR. The sector also has an above average percentage of loans to the public sector, making it vulnerable to losses due to government instability.
To help address these issues, the International Monetary Fund approved a disbursement of $40.2 million and an augmentation of $55.1 million to the CAR in 2017 as part of the Extended Credit Facility Arrangement. The funds will be used to support economic growth and develop the banking sector. According to Deputy Managing Director and Acting Chair Mitsuhiro Furusawa, the CAR’s program consists of “improving regional institutions, stricter monetary policies, removal of statutory advances, sound bank regulation and supervision, and firm controls over the extension of credit to banks.”
Bringing Credit to Individuals in the CAR
A more direct way of aiding impoverished families is through the Mercy Corps project Microfinance in the CAR, which launched in 2010. The project’s mission is to produce, educate and assist 169 Village Saving and Loan Associations (VSLA). The project was also created to assist in constructing supervision strategies, insurance funds and credit policies. The project’s answer to the CAR’s issues is to educate the VSLA groups to practice saving and credit strategies during the members’ first nine-month loan and savings cycle. Its long-term goal is to help 3,300 households by expanding the groups’ assets in developing and overseeing independent businesses to gross earnings.
In recent years, credit access in the CAR has been made possible through a microfinance program established by the U.N. Development Programme (UNDP) for entrepreneurs developing businesses. The UNDP opened a saving bank called Gogoro that gives users the opportunity to save money securely. Severin Saragourne, an entrepreneur and a user of Gogoro, said, “If you borrow wisely and respect the deadline for your program, you’ll have no problem paying the money back.” The micro-credit program has saved many people from poverty and starvation in the CAR. Through Gogoro, more than 49,000 people in underdeveloped nations have received access to credit, savings and other financial services to overcome poverty.
Another sign of progress in financial services is the UNDP’s project with the Leaders of the International Centre of Credit Unions, which made magnetic cards available for all transactions in 2011. Even with the obstacles the CAR has struggled with, the region shows promise in improving its financial sector and resolving the limitations of credit access in the Central African Republic.
– Christopher Shipman
Photo: Flickr
Vietnam Has Reduced Poverty but Progress Is Still to Be Made
After the Vietnam War, which concluded when North and South Vietnam were reunited as one country in 1975, Vietnam faced war damages and an impoverished economy. From 1975 to 1985, Vietnam was a poor and self-reliant country facing a serious economic crisis. The country endured food shortages, damaged infrastructure and worsening living standards. About 70 percent of its population was living below the poverty line.
Doi Moi
In 1986 came the introduction of a political and economic renewal campaign called Doi Moi. It transformed the country into a globally-oriented market economy and resulted in major improvements in economic conditions and in human development. In 1993, the success of Doi Moi was represented as Vietnam’s poverty rate was reduced to 58 percent.
From 1995 to 2014, Vietnam restored diplomatic relations with the U.S., became a lower-middle income country and grew its per capita gross domestic product from $288 to $1,910. Over the past three decades, Vietnam has reduced poverty by economic development, causing the national poverty rate to drop from 70 percent to 11.3 percent.
The results of Vietnam’s poverty reduction have been extraordinary, and there have been several social and economic factors helping to reduce poverty and improve living standards for millions of people.
Levels of Education
Vietnam’s level of education has increased immensely. Figures estimate that enrollment rates in primary education have reached near universal levels, meaning more Vietnamese children are receiving an education now than ever before.
In 1990, Vietnam’s primary and secondary school enrollment rates were alarmingly low. People who have not completed primary education are more vulnerable to living in poverty. Today, the enrollments for primary and secondary school for the poor have reached more than 90 and 70 percent respectively. Additionally, the country’s literacy rate has reached more than 90 percent for men and women.
Investments in Agriculture and Infrastructure
Vietnam has reduced poverty through improved income by growing more profitable industrial crops in highland or mountainous regions. Targeting investment in agriculture and advancing restructuring in Vietnam has caused substantial increases in agricultural yields and poverty reduction in rural areas.
Enhanced infrastructure has also been a driver of Vietnam’s poverty reduction. Wide-reaching infrastructure investments throughout Vietnam have supported efficient economic reform policies, surged productivity and provided better economic opportunities for the poor.
Vietnam has Reduced Poverty
Over the past 30 years, Vietnam has reduced poverty and at least 14 million Vietnamese people have joined the middle class. Of the country’s 90 million people, however, 9 million still live in extreme poverty and most belong to ethnic minority groups.
From 1993 to 2006, extreme poverty rates decreased by 85 percent for the ethnic majority group. The ethnic minority group, however, only saw a decrease of 48 percent. These ethnic minorities, primarily the Tay, Thai and Hmong peoples of northwest Vietnam account for 73 percent of the poverty rate in the region. Ethnic minorities in Vietnam are more vulnerable to social and economic disadvantages due to a lack of education, clean water, sanitation, transportation, health care and other services.
Although the poverty rate among ethnic minorities decreased by 13 percent from 2014 to 2015, further efforts should be taken to alleviate poverty for the 9 million still in need. Vietnam’s focus should be on improved education and infrastructure in hard-to-reach areas comprised of mainly ethnic minorities who are more vulnerable to natural disasters, climate change and economic shocks. Although Vietnam has reduced poverty, progress is still to be made.
– Natalie Shaw
Photo: Flickr