Ever since the rise of drug lord Pablo Escobar in the 1980s, Colombia has been an easy target for negative media portrayals and has been susceptible to misrepresentation. Movies and TV shows provide the best examples of how the media misrepresents Colombia, because they often show the country as a war zone filled with drugs.
Although this may have been true at one time, it is no longer the case, and the media’s depiction of the past should not be mistaken for the present state of the country.
How the Media Misrepresents Colombia: Drug Lords and Cocaine
Hollywood has portrayed the lavish life of Colombian cartel leaders and the danger of Colombian guerrilla groups for many years; however, the Netflix show Narcos, which is a great example of how the media misrepresents Colombia, has recently brought more attention to the country’s dark past and has sparked an interest in Pablo Escobar, along with the Cali and Medellin cartels. The show now attracts more than three million viewers.
Pablo Escobar’s son, Sebastian Marroquin, has spoken out against Narcos for glorying his father’s crimes. “Series about narcos have turned my father into a hero and given young people the idea that it is cool to be a drug trafficker. I am not against telling stories, but I am against glorifying criminals and showing trafficking as glamorous,” he told El Periodico.
When an advertisement for Narcos was displayed in Madrid’s central square, Colombian President Juan Manuel Santos spoke out against the show in a radio interview by saying, “we Colombians lived the drama of Pablo Escobar and that suffering still hurts. Escobar should not be held up as a hero and honoring [him] goes against everything that is right.”
In addition to shows about Pablo Escobar, the American media widely covers the activity in drug-producing countries like Colombia; however, the abundant supply of drugs only continues if it is met by a demand for drugs in first world countries. Many of the people producing coca leaves are farmers looking to put food on the table for their families.
It is true that Colombia produces the majority of the world’s cocaine, but if people around the world were not consuming it, the supply may not have continued for this long. For instance, in a Washington Post article that covers cocaine use in the United States, the author places blame on Colombia’s producers and smugglers, yet only speaks of the consumer briefly by stating the rise in consumption and wraps it up by saying, “This surge in consumption can be traced directly to Colombia’s bumper harvest,” instead of further analyzing other factors that could result in an increase in American drug consumption.
The Reality: Peace and Development
A lot of good things are happening in Colombia, but the media ignores these events because they are not as exciting or dramatic as the war on drugs. A new era is here for the Colombian people and it deserves as much coverage as the war.
In 2016, the famous Colombia Peace Treaty put an end to a 52-year war between Colombia’s Armed Revolutionary Forces and the government. Additionally, the government is also carrying out negotiations with ELN, another armed guerrilla group which has caused violence in the country for decades. This led to President Santos being awarded the Nobel Peace Prize in 2016.
The newly gained political and economic stability has opened up the country for business. The poverty rate in the country has fallen from 20 percent in 2001 to 4.5 percent in 2016. According to the World Bank’s 2017 ease of doing business report, Colombia ranks 53rd out of 190 countries, ranking only below Mexico in Latin America. Additionally, the country seems to be moving forward with technological development. In 2012, Medellin was named the innovative city of the year.
Safety
This is one of the common themes in how the media misrepresents Colombia. While it would be incorrect to claim there are no drugs or conflicts in Colombia, it is also incorrect to claim that cartels are operating at the same scale as they were in the 1980s and 1990s. The Medellin and Cali cartels were dismantled when the Colombian government, along with the U.S. government and DEA, carried out the assassination or incarceration of their leaders.
Although drug production continues, a violent drug empire that attempts to control the government, such as Pablo Escobar’s, no longer exists. Even though Colombia was considered a fragile state for years after Escobar’s death, ranking 14th in the 2005 Fragile State Index, it has now fallen to 71st in 2018. Colombia’s safety has improved greatly in the past 20 years.
As of January 2018, the U.S. Department of State has upgraded Colombia to a Level 2 country for travel after being considered a Level 3 country for many years. This means that instead of being a country that Americans should reconsider traveling to, it is now considered a country that can be visited with reasonable caution. Additionally, the New York Times has named Colombia as one of the top places to visit in 2018.
The media represents Colombia as it was in the 1980s and fails to report on the many changes that the country has undergone since this tragic time. The Colombian people are ready for a new chapter in their nation’s history and the media should accurately represent their efforts to close the chapter on war and drug trafficking and beginning an era of peace and stability.
– Luz Solano-Flórez
Photo: Flickr
Six Lesser Known Organizations Addressing Poverty
Lesser Known Organizations Addressing Poverty
Africare, one of the largest African-American led organizations with an almost entirely African-American staff, focuses on community-driven development in Africa. Working with the tools of community engagement, local public-private partnerships, locally driven behavior change and capacity building, Africare seeks to improve economic development, nutrition, water and sanitation and women’s and youth empowerment. Since Africare’s founding, it has provided more than $1 billion in assistance to people across Africa.
Operating for 40 years, The Hunger Project develops women-centered, grassroots strategies to help individuals out of poverty and hunger. Working in more than 16,000 communities internationally, The Hunger Project promotes self-reliant, community-led development, and partnerships with local governments to create sustainable change in communities facing poverty. Working in 12 countries and reaching 17 million people, The Hunger Project is creating community-led development for many, representing one of many lesser known organizations addressing poverty.
Trickle Up, a U.S.-based nonprofit organization seeks to help people rise out of poverty internationally, focusing on those who are disproportionately affected – refugees, individuals with disabilities, women, indigenous populations and people in rural areas. The organization uses a program called Graduation, which involves a step by step process to lift individuals out of poverty. Recipients are given a small grant to start a business and paired with other local people to create a savings group. From there, individuals are coached and taught skills to build their business, confidence and livelihoods. With 250,000 participants and more than 1 million lives impacted, this nonprofit is generating great change.
Based out of Columbia University in New York City, The Earth Institute is a group of researchers, policy experts, scientists, economists and students all seeking to guide policy towards sustainability worldwide. It works domestically and internationally on a wide variety of topics, including climate, urbanization, water and energy, but also helping individuals out of poverty. By working on sustainable and efficient policy, such as preventing flooding in developing nations, The Earth Institute creates policy that improves the quality of life of individuals worldwide.
Innovations for Poverty Action (IPA) is one of the lesser known organizations addressing poverty through dedicated evaluations of current programs designed to help impoverished populations and providing evidence showing which approaches work and which do not. IPA identified a gap in the data available and created a mission to fill it. It works closely with governments, for-profit companies, nonprofits and civil society to create evidence-based programs to help poor individuals out of poverty. The work is evaluation focused but provides a body of evidence that can be drawn upon for program design and development.
Bread For The World is a Christian nonprofit that works in a bipartisan way to urge policymakers to pass policies focused on food security that improve the lives of those living in poverty both domestically and abroad. Working at the policy level, Bread For The World provides individuals with advocacy tools to help them write letters, email or call members of Congress to promote poverty reducing policy. Since its inception in 1974, Bread For The World has successfully funded foreign aid and domestic policy to reduce poverty worldwide.
The field of international development is vast, and with many different organizations trying to address poverty internationally, it can be hard to know where to look to see what is being done. In addition to the many large organizations working internationally, we cannot forget about lesser-known organizations addressing poverty in developing nations.
– Katherine Kirker
Photo: Flickr
How the Media Misrepresents Colombia
Although this may have been true at one time, it is no longer the case, and the media’s depiction of the past should not be mistaken for the present state of the country.
How the Media Misrepresents Colombia: Drug Lords and Cocaine
Hollywood has portrayed the lavish life of Colombian cartel leaders and the danger of Colombian guerrilla groups for many years; however, the Netflix show Narcos, which is a great example of how the media misrepresents Colombia, has recently brought more attention to the country’s dark past and has sparked an interest in Pablo Escobar, along with the Cali and Medellin cartels. The show now attracts more than three million viewers.
Pablo Escobar’s son, Sebastian Marroquin, has spoken out against Narcos for glorying his father’s crimes. “Series about narcos have turned my father into a hero and given young people the idea that it is cool to be a drug trafficker. I am not against telling stories, but I am against glorifying criminals and showing trafficking as glamorous,” he told El Periodico.
When an advertisement for Narcos was displayed in Madrid’s central square, Colombian President Juan Manuel Santos spoke out against the show in a radio interview by saying, “we Colombians lived the drama of Pablo Escobar and that suffering still hurts. Escobar should not be held up as a hero and honoring [him] goes against everything that is right.”
In addition to shows about Pablo Escobar, the American media widely covers the activity in drug-producing countries like Colombia; however, the abundant supply of drugs only continues if it is met by a demand for drugs in first world countries. Many of the people producing coca leaves are farmers looking to put food on the table for their families.
It is true that Colombia produces the majority of the world’s cocaine, but if people around the world were not consuming it, the supply may not have continued for this long. For instance, in a Washington Post article that covers cocaine use in the United States, the author places blame on Colombia’s producers and smugglers, yet only speaks of the consumer briefly by stating the rise in consumption and wraps it up by saying, “This surge in consumption can be traced directly to Colombia’s bumper harvest,” instead of further analyzing other factors that could result in an increase in American drug consumption.
The Reality: Peace and Development
A lot of good things are happening in Colombia, but the media ignores these events because they are not as exciting or dramatic as the war on drugs. A new era is here for the Colombian people and it deserves as much coverage as the war.
In 2016, the famous Colombia Peace Treaty put an end to a 52-year war between Colombia’s Armed Revolutionary Forces and the government. Additionally, the government is also carrying out negotiations with ELN, another armed guerrilla group which has caused violence in the country for decades. This led to President Santos being awarded the Nobel Peace Prize in 2016.
The newly gained political and economic stability has opened up the country for business. The poverty rate in the country has fallen from 20 percent in 2001 to 4.5 percent in 2016. According to the World Bank’s 2017 ease of doing business report, Colombia ranks 53rd out of 190 countries, ranking only below Mexico in Latin America. Additionally, the country seems to be moving forward with technological development. In 2012, Medellin was named the innovative city of the year.
Safety
This is one of the common themes in how the media misrepresents Colombia. While it would be incorrect to claim there are no drugs or conflicts in Colombia, it is also incorrect to claim that cartels are operating at the same scale as they were in the 1980s and 1990s. The Medellin and Cali cartels were dismantled when the Colombian government, along with the U.S. government and DEA, carried out the assassination or incarceration of their leaders.
Although drug production continues, a violent drug empire that attempts to control the government, such as Pablo Escobar’s, no longer exists. Even though Colombia was considered a fragile state for years after Escobar’s death, ranking 14th in the 2005 Fragile State Index, it has now fallen to 71st in 2018. Colombia’s safety has improved greatly in the past 20 years.
As of January 2018, the U.S. Department of State has upgraded Colombia to a Level 2 country for travel after being considered a Level 3 country for many years. This means that instead of being a country that Americans should reconsider traveling to, it is now considered a country that can be visited with reasonable caution. Additionally, the New York Times has named Colombia as one of the top places to visit in 2018.
The media represents Colombia as it was in the 1980s and fails to report on the many changes that the country has undergone since this tragic time. The Colombian people are ready for a new chapter in their nation’s history and the media should accurately represent their efforts to close the chapter on war and drug trafficking and beginning an era of peace and stability.
– Luz Solano-Flórez
Photo: Flickr
Methods to Combat Credit Access in Benin
Development Credit Authority
There are a few different ways that organizations have approached the issue. One method, incorporated by the U.S. Agency for International Affairs (USAID), involves improving Development Credit Authority (DCA). The program is designed to allow residents to apply their credit to projects for improving health and agriculture.
Through DCA, more than 500 guarantees have been made with USAID by financial institutions. These have resulted in up to $4.8 billion in private financing, creating opportunities for more than 245,000 entrepreneurs worldwide.
The Microcredit Program
Credit access in Benin is an issue that the local government attempted to solve as well. In 2007, the governmental set up the Microcredit Program, which allowed people to take out loans for individual success and enterprises. It was designed to improve credit access across the country.
Credit access can affect poverty rates as well, giving people a chance to start new. Loans majorly affect a person’s ability to be successful and achieve personal goals.
Credit Access in Benin for Women
The World Bank recognizes in an overview of Benin’s finances that poverty in the country has a history of being unequal between genders. Women are more vulnerable and have fewer economic opportunities despite a lower poverty rate. Female-led households in poverty are at 28 percent in the country, while male-headed homes are higher at 38 percent.
Economic opportunities such as the opportunity to participate in personal economic goals or business endeavors can be improved by credit, increasing the accessibility of economic opportunity for women.
Risks to Credit Institutions
Despite foreign aid efforts and the government working to improve credit access in Benin, the issue is still a complicated one and improvement is difficult due to the way that credit has been established in the country.
According to the International Monetary Fund (IMF), several risk factors are present regarding the way credit institutions have been established and overseen in Benin. Government involvement, government bonds and the shallow financial market are risks to the success of the banking system and credit access in Benin. According to IMF, “The recent government plan not to pay back short-term bank loans, but to issue long-term bonds instead would not only deepen banks’ exposure to sovereign risk but also aggravate liquidity risks due to a sharp change in the maturity structure of the affected banks’ portfolio.”
As the government works to improve the credit system and the management of government loans and bonds, credit access in Benin may change. USAID and other groups will continue to look for ways to improve credit access in Benin. The DCA program is only one way activists are working on improving the issue and financial analysis from organizations such as the World Bank and the IMF will be useful going forward for people looking to make a change.
– Gabriella Evans
Photo: Flickr
The Merits of a Focus on Children in Extreme Poverty
Consequences such as stunted development, low levels of skills needed for life and work, limited future productivity as adults and the generational cycle of poverty inhibit change in children living in poverty. These consequences are especially heinous because they debilitate the global human capital needed to grow and sustain economic prosperity.
Report Details Extent of Children in Extreme Poverty
Based on data from 89 countries representing 84 percent of the developing world’s population, UNICEF and The World Bank Group estimated that 385 million children were living in extremely poor households in 2013. Children are more than twice as likely to be living in households in extreme poverty. Roughly 19 percent of children in extreme poverty are estimated to be living on less than $1.90 a day, compared to an estimated 9 percent of adults.
The World Bank Group and UNICEF researchers conducted a comprehensive range of tests to check if changing these assumptions would affect their results. They tested their findings against realistic large and small economies of scale, as well as a range of realistic ratios comparing children’s consumption to adults’. In all cases, children still emerged with higher poverty rates across developing countries.
The World Bank Group is a vital source of financial and technical assistance to developing countries around the world as the world’s largest funder of education, the largest external financier of the fight against HIV/AIDS and the largest international financier of biodiversity projects, water supply and sanitation projects.
UNICEF promotes the rights and well-being of every child. With work in 190 countries and territories, UNICEF translates that commitment into practical action, focusing special effort on reaching the most vulnerable and excluded children to the benefit of all children in extreme poverty.
Recommendations for Governments to Help Children in Extreme Poverty
Together, UNICEF and The World Bank Group have established partnerships with governments across the globe to address child poverty and to promote a range of cross-sector investments in the early years of life. Their goal is to end extreme poverty by 2030. This vision is central to the work of the World Bank Group and UNICEF. The two organizations are calling on governments to focus on four main areas to combat extreme poverty:
Addressing these multidimensional aspects of children in extreme poverty is crucial. In the face of a global economic slowdown, ending extreme child poverty by 2030 will not be easy. However, change is possible.
– Richard Zarrilli
Photo: Flickr
What You Might Not Know: Facts About Refugees
The journey of the refugee is riddled with uncertainty. The person is forced to leave their home and become an asylum seeker. The asylum seeker enters a foreign state in search of refugee status. For many asylum seekers, the journey is perilous. Traditional and safe forms of transportation across state boundaries are rare. For Syrians hoping to make landfall in Europe or Libya, options were limited and sea voyages were often part of the journey.
The lack of adequate vessels and safety equipment led gave way to unfortunately high mortality rates on the sea. The images emerging from the shores of Greece, Turkey and Libya capture the dire situation under which this journey was made. Major media outlets have published images showing refugees tired, distressed or worse. What is missing from this seemingly hopeless narrative are the rights guaranteed to these people as global citizens.
Refugees are entitled to certain rights. These persons are entitled to security, are not to be involuntarily returned to the country from which they are fleeing and should receive the same rights as other foreign nationals. Often, the influx of large quantities of people into already fragile economies creates an environment that does not allow the refugee the living conditions and opportunities for education, work and healthcare that are called for by human rights standards.
Often the very meaning of the word refugee is misunderstood. Surrounding the issue of displaced persons are numerous misconceptions and the facts are lost in assumptions. In hopes of clarity and dissuading any misconceptions about who refugees are, here are some facts about refugees:
Facts About Refugees
The story of the refugee cannot be easily described through numbers and statistics. The larger narrative is more complex than can be easily summarized into key facts. The numbers neglect the individual experience of the refugee. These facts about refugees not do justice to the larger issue of statelessness but rather offer a snapshot of the problems facing displaced persons and the global community.
As these facts about refugees illustrate, refugees are often subjected to living in extreme poverty due to lack of resources available in camps and the slow, bureaucratic process of resettlement. These individuals lack access to adequate healthcare, education and opportunity for economic growth. Camps intended for emergency shelter become long-term solutions. There are many organizations doing incredible work to provide food, shelter and services to displaced persons.
– Madison Shea Lamanna
Photo: Flickr
The Story of Poverty Decline in Kenya
Despite these findings, researchers maintain that it is doubtful that poverty in Kenya will be eradicated by 2030. So what exactly is behind the poverty decline in Kenya, and why will it not be enough to completely solve the problem in the future?
Infrastructure Contributes to Poverty Decline in Kenya
Since 2013, the public sector’s contribution to GDP growth has jumped from just 1.1 percent to 2.5 percent. This is largely due to ambitious projects undertaken by the Kenyatta administration, including the construction of a $24.5 billion northern trade route, the expansion of the Mombasa-Nairobi Standard Gauge Railway, the creation of the Lamu Port and the modernization of major Kenyan airports. These developments have opened up new opportunities for trade throughout the region.
Beyond that, Kenya has made incredible strides in providing basic needs to its citizens over the past few years. In 2013, only 27 percent of Kenyan households had access to electricity. This number skyrocketed to 55 percent, or 5.7 million households, by the beginning of 2017. The number of Kenyan households with access to improved water sources has also climbed from just 60 percent in 2005 to nearly 72 percent in 2015. In addition, Kenya is leading the way in households with access to adequate sanitation facilities among countries with similar poverty rates. These improvements are crucial to promoting economic growth because they are the cornerstones of basic health and well-being.
Agricultural Growth Promising, But Unstable
Another factor leading to the poverty decline in Kenya is the agricultural sector. According to the report, agriculture accounted for the largest share of poverty reduction in the past decade. The agricultural sector remains the leading contributor to Kenya’s GDP, and provided a sizeable boost to the economy with an average growth of 4.1 percent between 2011 and 2015.
However, this is problematic because farming is an unreliable source of growth. The success of crops is completely controlled by weather conditions, and drought is extremely common in Africa. Kenya witnessed the devastating impacts of relying on agriculture last year when its economy took a hit due to decreased rainfall levels. This instability is one of the reasons why experts say that poverty will not be eradicated by 2030.
Private Sector Investment Needed to Continue Poverty Decline in Kenya
An additional obstacle to the poverty decline in Kenya is the deterioration of the private sector. In recent years, GDP growth from private investments has slid from 1.3 percent in 2013 to negative 0.7 percent in 2017. This is partially due to the political instability that surrounded the presidential election in 2017, which led many to see investments in Kenya as a risk because the government seemed fragile. Another claim made in the report is that the increase in government spending led to “crowding out,” the discouraging of private spending due to a rise in interest rates.
Although poverty may not be completely eradicated by 2030, it is projected to decrease at the rate of one percentage point per year if current trends continue. Though there are some major challenges to overcome in the future, the poverty decline in Kenya is a promising sign for the country’s welfare.
– Maddi Roy
Photo: Flickr
Movies, Music and Tech: How the Media Misrepresents Nigeria
Due to news reports highlighting Nigeria’s plights, positive news is often overshadowed, news that sheds light on the innovation that is happening in the nation. As a result, what may not be as commonly known is how the media misrepresents Nigeria.
Planned Changes Ahead
The current president of Nigeria, Muhammadu Buhari, has established a plan to fuel economic growth. The government has established the Economic Recovery and Growth Plan, which address and proposes initiatives to resolve economic issues within Nigeria.
According to the plan, which includes the National Industrial Revolution Plan, the government plans to focus “on priority sectors to generate jobs, promote growth and upgrade skills to create 1.5 million jobs by 2020.” It is predicted that President Buhari’s plan is expected “to reduce unemployment from 13.9 percent as of Q3 2016 to 11.23 percent by 2020.”
The rampant reports of violence in the nation often overshadow the president’s plan to reverse economic plights and is an example of how the media misrepresents Nigeria.
The Media Misrepresents Nigeria by Ignoring Its Growing Industries
Civil conflicts have overshadowed Nigeria’s multiple booming industries that are captivating audiences abroad, and this serves as another example of how the media misrepresents Nigeria. The following industries are bringing Nigeria’s domestic talent to the limelight, creating the potential for the nation’s economy to transform dramatically over time.
Nollywood
As of 2009, Nigeria’s film industry has grown to become the second largest film industry in the world, behind Bollywood, India’s film industry. The industry has a valuation of $3.3 billion and produced 1,844 films in 2013. As the nation continues to develop, the film industry is only expected to grow over time.
Nigeria’s Music Industry
Nigeria has a thriving music industry, with big names in music seeing success abroad. Afrobeats, as it is commonly referred to, is a niche of West African music that has made its artists into stars overseas. Even domestically, Nigeria’s music scene is a promising sector for the nation to continue to improve its economy. In 2015 alone, the nation’s music industry generated an estimated $56 million, and domestic revenues from music are expected to increase over time.
A Booming Tech Industry
Over the past few years, Nigeria has seen growth in its tech industry, with its startups becoming successful and gaining attention from big-time investors. Nigeria’s tech industry is known as Africa’s “most valuable ecosystem” and is the founding place for many notable startups, including Andela, iROKO and Flutterwave. In 2016, the nation attracted more investments than any other startup ecosystem in Africa, with $109.37 million raised from investments.
With the nation being a leader in innovation in Africa, it is expected that in the forthcoming years Nigeria will become more of a global presence, shedding more light on the great things that are happening in the nation.
– Lois Charm
Photo: Flickr
How the US Benefits from Foreign Aid to American Samoa
Reduction of Carbon Emissions
The U.S. benefits from foreign aid to American Samoa as the territory works diligently to improve environmental conditions.
In January 2018, the U.S. Environmental Protection Agency awarded a total of $10.7 million to the American Samoa Environmental Protection Agency. The aid provided will go to strengthening its capacity to protect human health, the environment and vital water infrastructure. American Samoa has many projects to utilize the aid, benefiting and improving the lives of U.S. citizens as well as the U.S. nationals living on the islands.
American Samoa plans on severely reducing its carbon emissions and the emissions from diesel fuels, aiming for 100 percent renewable energy generation for the outer islands’ electric power system by 2040. In an interconnected world, the reduction of one nation’s carbon emissions can improve the air and water quality of the entire world in a global strategy for combatting climate change.
The Paris Agreement, currently supported by 175 countries, highlights the importance of every nation reducing carbon emissions. According to the U.N., carbon emissions from human activities are driving climate change which now affects every nation on the planet through: changing weather patterns, rising sea level, and the increased presence of more extreme weather events.
Health of Coral Reefs
The importance of coral reefs to the ecosystem and every human being’s quality of life cannot be understated. Often overlooked, coral reefs are responsible for protecting coastlines from flooding during tropical storms, providing vital marine life with shelter and assisting in carbon and nitrogen fixing.
The diversity of sea life is essential to the fishing industry in the United States. Many fish spawn in coral reefs. Juvenile fish spend a large portion of their time there before making their way to the open sea. Without coral reefs, the global economy would suffer huge losses of $375 billion annually from Australia to Florida.
Without the presence of thriving coral reefs, it is expected that more than 4,000 species of marine life that call the reef home face extinction. Among the multitude of species at risk are tuna, sea turtles, spiny lobsters and dolphins.
The U.S. benefits from foreign aid to American Samoa as American Samoa plans to use substantial portions of the foreign aid to revitalize these essential marine life and ocean ecosystems directly benefiting the lives of all U.S. citizens.
Economy and Trade
The economy of American Samoa is intricately linked with the U.S. economy. American Samoa conducts most of its commerce with the U.S. through imports and exports. American Samoa today is one of the world’s largest exporters of canned tuna, canned pet food and fish meal.
Home to the Chicken of the Sea and Starkist Samoa tuna canneries, American Samoa faces nearly zero tariffs when importing goods to the United States. This effectively works to keep costs low for consumers. Furthermore, American Samoa is exempt from the federal law prohibiting foreign commercial fishing vessels from offloading tuna at U.S. ports. It is estimated the tuna canning supplied to the U.S. is worth $500 million a year.
The economy of the U.S. benefits from foreign aid to American Samoa in more than just exports. American Samoa is also a consumer of U.S. goods generating $27.9 million in imports for 2016. Including American Samoa, the U.S. accounts for more than 25 percent of Samoan exports, while 10 percent of Samoa and American Samoa’s imports come from the United States.
The benefits of foreign aid are symbiotic. Through providing funds to empower American Samoa to take on environmental initiatives, grow local businesses and create valuable trade partnerships, the U.S. benefits from foreign aid to American Samoa.
– Kelilani Johnson
Photo: Flickr
How the US Benefits From Foreign Aid to Bosnia and Herzegovina
Bosnia and Herzegovina was involved in an ethnically-motivated civil war from 1992 to 1995. It was not until 1995 that NATO intervened and a ceasefire (the Dayton Accords) was negotiated that finally ended the conflict. Today, the Dayton Accords are still in force.
How USAID Has Helped Bosnia and Herzegovina
The millions of dollars donated to the country have been allocated towards efforts of reconstruction, humanitarian assistance, economic development and military rebuilding. USAID assistance has had a large role in numerous projects and programs to get the country back on its feet and helping it become a thriving and economically stable country.
USAID has laid out in its official fact sheet its aid to the people of Bosnia and Herzegovina in the following areas:
In 2016, the EU accepted Bosnia and Herzegovina’s application into the EU, but member states say the country should continue with reform, “including socioeconomic reforms, reforms in the area of rule of law and public administration.” Challenges including the country’s poor governance and an effort made by the Republika Srpska to move the country to secession has made its commitment to the EU-driven package harder to accomplish. Nevertheless, economic reforms made by Bosnia and Herzegovina in order to join the EU has led to it becoming one of the fastest growing economies in Eastern Europe.
How the U.S. Benefits From Foreign Aid to Bosnia and Herzegovina
According to the Department of State, “U.S. assistance will help BiH implement this reform package and improve government accountability and efficiency, trade with Europe, and inter-ethnic dialogue and reconciliation.” The U.S. benefits from foreign aid to Bosnia and Herzegovina by securing the country’s stability in the region.
With U.S. assistance, the U.S. benefits from foreign aid to Bosnia and Herzegovina joining the EU would bring Bosnia and Herzegovina one step closer to joining NATO, creating a stronger alliance with the U.S. Bosnia and Herzegovina has been vocal since 2008 about its desire to join NATO. Not only did the country join the Partnership for Peace, but has contributed to NATO projects in Afghanistan. Bosnia and Herzegovina’s cooperation with NATO will not only provide defense for the U.S., but will also increase trade between the two countries.
Continued efforts from Bosnia and Herzegovina to reform its social, political, and economic situation in order to enter the EU would allow the EU’s organizations, such as its Common Security and Defense Policy, to ensure that the U.S. benefits from foreign aid to Bosnia and Herzegovina.
– Emma Martin
Photo: Flickr
Credit Access in Honduras is Steadily Improving Lives
The Current Situation
Without access to credit, savings or other basic financial services, over two billion people around the world are financially excluded. Increased credit access in Honduras and other developing countries enables poor families to earn a larger income, build their assets and cushion themselves from extra costs from external shocks like natural disasters. Poverty in Honduras is exacerbated by a consistent threat of natural disasters, such as floods, hurricanes and land erosion.
In Honduras, 60 percent of the population lives below the national poverty line and the country has one of the lowest per capita incomes in Latin America. Credit access in Honduras is limited, especially in rural areas due to obstacles including high operating costs because of infrastructural deficiencies, a high level of risk due to the threat of natural disasters and a lack of flexible financial products and financial intermediaries that can cater to specific needs.
Improvements to Credit Access in Honduras
In 1989, a non-banking financial institution called FINCA was established in Honduras to provide banking services to people across the country, including loans, savings deposits, money transfer services and insurance. FINCA now has 21 branches and serves over 47,000 people in rural and urban areas of Honduras. The average loan is less than $800 and the institution’s loan portfolio amounts to over $21 million.
In 2014, the Rural Savings and Credit Union was formed in Honduras to provide these financial services in rural areas and offer flexible financial services based on individual negotiations and a deep knowledge of local communities and the businesses within those communities. Rural Savings and Credit Unions have promoted a more gender-inclusive market system, empowering women to participate in the economy to open small businesses and support their families financially. They are also sustainable and easy to replicate, ensuring a stable source of financial services to rural and poor areas in Honduras.
The Multilateral Investment Fund also approved a $200,000 technical assistance grant and a $3 million loan to the José María Covelo Foundation. The funds will allow the organization to pursue a project to improve the economic conditions of productive and entrepreneurial individuals in rural and peri-urban areas by increasing the microcredit supply in Honduras.
Real Life Results
Microcredit services like FINCA have helped increase poor people’s credit access in Honduras, enabling them to start small businesses and increase their incomes without having to go into major debt. For example, 62-year-old Consuelo Esperanza Rueda Aguilar has been able to start several businesses, from running a taxi service to selling a variety of different items ranging from cell phones to clothing to pots and pans. By utilizing FINCA’s services, Consuelo carefully invested her earnings to develop her entrepreneurial endeavors. She was also able to educate all five of her children and to buy a bigger house.
Models like FINCA and Rural Savings and Credit Unions strive to reduce poverty by increasing credit access in Honduras, providing economic opportunity for people in the most vulnerable settings and increasing economic empowerment by giving Hondurans the tools to become more financially stable.
– Sydney Lacey
Photo: Flickr