Aiming to alleviate global poverty, the World Bank has provided the financial backing for the construction and reconstruction of vital infrastructures, such as roads, dams and electrical grids, to war-torn and developing countries since 1944. In the fiscal year 2017, the World Bank granted $59 billion for projects in developing countries.
There are currently over 2,600 active projects worldwide ranging from financial risk management to roads and railways. Investments in infrastructure by the World Bank toward developing countries start in the billions of U.S. dollars. Here are the top five most expensive pledges for active projects in developing countries.
Eastern Dedicated Freight Corridor—II (India)
Active investments in infrastructure by the World Bank in India include the Eastern Dedicated Freight Corridor. It is an expansion effort that increases the reach and efficiency of freight cargo transportation in India’s northern and eastern regions, from Ludhiana to Dankuni.
The Eastern Freight Corridor, a project originally approved in October 2011, is a series of three projects that aim to double Indian Railways’ carrying capacity. In April 2014, the World Bank approved a $1.1 billion pledge, with a total cost of $1.65 billion, for the second tier of the project. This phase is set to build a 393-km, double-track, electrified, freight-only railway with a 25-ton axle-load at 100km/h. This sector will span between Kanpur and Mughal Sarai.
Uttar Pradesh, the most populous Indian state, stands to benefit from increased access to employment, health and education for its citizens by the de-cluttering of roadways. Once completed in December 2019, the full stretch of railway will be 1,839 km and is expected to reduce greenhouse gas emissions by up to 55 percent.
IN Swachh Bharat Mission Support Operation (India)
In 2015, the World Bank agreed to fund $1.5 billion of a $2.2 billion sanitation project, the Swachh Bharat Mission (SBM) Support Operation. The project focuses on the construction and promotion of using toilets in rural areas in India, in which 67 percent of Indians live.
The project is a part of a universal sanitation initiative that seeks to end the practice of open defecation by 2019. Ten percent of deaths in India are associated with poor sanitation. India also misses out on six percent of possible GDP due to insufficient sanitation. Further investments in infrastructure by the World Bank will provide $25 million to aid state training programs to encourage usage of toilets in rural areas.
PMGSY Rural Roads Project (India)
The Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project was established in 2010 when India’s National Rural Roads Development Agency and the World Bank agreed to a $1.5 billion deal. The project provides all-weather roads, servicing the states Jharkhand, Himachal Pradesh, Rajasthan, Meghalaya, Uttarakhand, Uttar Pradesh and Punjab.
The World Bank’s investment fully funds the PMGSY program for five years and covers civil works expenditures and furnishes a technical assistance program to assist agencies running it. PMGSY Rural completed work in April 2018 on a 7,000 km rural road, which is the longest road assembly in a year since PMGSY began in 2000.
This is the second of multiple investments in infrastructure by the World Bank as a part of the PMGSY project, the first being a $400 million loan in 2004. It connected 9,900 km of rural roads in Himachal Pradesh, Jharkhand, Rajasthan and Uttar Pradesh. The greater PMGSY project aims for 375,000 km of roads, linking 178,000 habitations and refurbishing 372,000 km of existing rural roads.
South-West Roads: Western Europe-Western China International Transit Corridor (Carec 1b & 6b) (Kazakhstan)
Investments in infrastructure by the World Bank in Kazakhstan look to improve road management and traffic safety. The South-West Roads Project was approved in 2009 when the World Bank agreed to fund $2.125 billion of the $2.50 billion total cost. The project includes constructing a 1,500-km road connecting China and Western Europe from the Aktobe and Kyzylorda district border to South Kazakhstan.
Road construction provides a local economic boost. The World Bank’s end of the deal employs 30,000 to 35,000 people. The cost of workers, subcontractors and materials boasts $1.6 million in spending power. Four thousand South Kazakhstan workers receive $600 a month, compared to the latest estimates that show the average Kazakhstan citizen earns $525 a month.
Eskom Investment Support Project (South Africa)
The largest, active investment in infrastructure by the World Bank is $3.75 billion, funding the Eskom Investment Support Project. Approved in April 2010, the total $10.75 billion project provides support for Eskom to enhance its energy supply and security.
Much of the funding was allocated for completion of the Medupi Power Station, the fourth-largest coal-fueled power plant. Stirring controversy, the plant is expected to add an annual 25 million metric tons of carbon emissions. Eskom is already reported to contribute to a 40 percent share of South Africa’s greenhouse gas emissions.
Eskom is South Africa’s state-owned primary electricity producer and Africa’s largest facility in electricity production. There is concern about Eskom as a monopoly producer of electricity and, accordingly, a call for more contributors in South Africa’s energy market. The National Union of Metalworkers of South Africa is currently pursuing a legal interdict from the Gauteng High Court in Pretoria in an effort to prevent Eskom from signing 27 renewable energy contracts.
As the World Bank continues to strive for its main objectives–decreasing the percentage of people living on less than $1.90 a day and spurring income growth for the bottom 40 percent–these projects, with such immense lending, are promising for the future of some of the world’s most economically vulnerable populations.
– Thomas Benjamin
Photo: Flickr
Why Is It Important to Vote?
Lyndon B. Johnson stated, “The vote is the most powerful instrument ever devised by man for breaking down injustice and destroying the terrible walls which imprison men because they are different from other men.” This truism is important for anti-poverty activists to remember as they enter their polling places.
The Power of One
It is important to vote because many candidates for political offices are voted in by only one or two votes. The same goes for important issues that are passed into law. The people who are most likely to be affected by changes in legislation or political power, such as the poor, minorities and the disenfranchised, are the least likely to vote.
The supreme court has taken steps to ensure that voter ID laws do not institutionally discriminate against groups of people. The right to vote is not dependent on whether the voter is more or less likely to be impacted by the results. Theodore Roosevelt said, “A vote is like a rifle; its usefulness depends on the character of the user,” because each vote that is cast is important and has an impact on the political climate of America.
John Quincy Adams sums up the reason why anti-poverty activists and other people wishing to make lasting changes for the better need to go out and vote when he said: “Always vote for principle, though you may vote alone, and you may cherish the sweetest reflection that your vote is never lost.”
A Tool for Change
So why is it important to vote? Voting is a powerful tool that can be used to make positive changes to social policy.
While marches and rallies are an important way to help inform people about various social issues, voting is a more powerful and useful tool for change. Morgan Carroll in “Take Back Your Government: A Citizen’s Guide to Making Your Government Work For You” eloquently expresses the power of a vote when she says: “When there’s a vacuum of public input, lobbyists usually fill it. But when there’s public input, the people usually win.”
Voting is one of the most effective ways to make lasting and beneficial changes to social policy. While marches and rallies tend to raise awareness about social issues that need to be addressed by the government, voting tells the government that awareness about the issue is no longer sufficient and that direct action to correct the issue is being demanded.
Why Is It Important to Vote?
It is crucial for anti-poverty activists and others who want to make lasting and beneficial changes to social policy to get out and vote. Franklin D. Roosevelt expresses the power of voting and the answer to the question “why is it important to vote?” when he said: “Nobody will ever deprive the American people of the right to vote except the American people themselves and the only way they could do this is by not voting.”
– Michael Israel
Photo: Flickr
Prosperity with High Prices: 10 Facts About Poverty in Tianjin
However, poverty still exists. Despite Tianjin’s overall economic growth, some serious problems hide below the surface and cannot be ignored. These facts about poverty in Tianjin help shed light on these hidden issues.
10 Facts About Poverty in Tianjin
Overall, even though Tianjin’s economy looks good on paper, these 10 facts about poverty in Tianjin illustrate the problems that government officials need to focus on. However, as shown above, the government is taking action to solve these problems, and more policies are being enacted to facilitate this process and improve the lives of those in poverty.
– Judy Lu
Photo: Unsplash
Gogo Olive Changing the Lives of Zimbabwean Women
The Problem: Difficulty Making a Living
One hardship faced by many women is HIV/AIDS, a disease that affected 1.3 million Zimbabweans in 2016. This results in many widowed parents who have to provide for their families by themselves. Providing for their households, however, is a difficult task when job opportunities are so limited. The unemployment rate in Zimbabwe is currently at 11.3 percent, and increases when excluding the large numbers of subsistence farmers and those working in the informal economy. This, however, is not the main problem for Zimbabweans.
The real problem, according to the International Labour Organization, is the poor quality of employment, characterized by low wages, no sick leave for employees and poor working conditions. In this way, the great need in Zimbabwe is decent jobs. Gogo Olive has met this need by employing women to knit goods, primarily in the form of knitted animals.
The Solution: Gogo Olive
Gogo Olive was founded by Julie Hagan as a way to create jobs for six women through knitting. Since its inception in 2008, the charity has grown to include about 80 knitters who produce hundreds of these knitted animals each month. According to the website, “Knitting was chosen as it only requires basic materials and can be done anywhere and at anytime, which suits the lifestyle of a Zimbabwean woman.”
The charity operates on two levels. Gogo Olive Knits creates jobs and generates income for women by selling their knitted products. Gogo Olive Cares focuses on meeting the other needs of the women. This includes establishing savings plans, running educational workshops, distributing care packages, and setting up an emergency fund to help with health costs and school fees. This is how one charity is changing the lives of Zimbabwean women: they not only provide an income, they also include additional benefits that have no doubt helped the poor greatly.
Gogo Olive Knits presents a flexible way to earn income. The knitters are paid monthly for each product they produce. According to Ruth Hagan, they can earn up to $250 monthly.
An additional benefit of working for Gogo Olive is the educational workshops. The majority of the knitters have had little education, a problem which keeps them in the poverty trap. Some of the topics covered are budgeting, HIV/AIDS awareness, healthcare, single parenting and farming techniques.
Beyond Income: Gogo Olive Cares
Gogo Olive Cares also provides an emergency fund for people in special circumstances. This includes school fees for their children and medical fees for medication or treatment that the women would otherwise be unable to afford. Ruth Hagan shared a story about one of the knitters who received a payment from the emergency fund. “In January, one of our knitters accessed the fund which allowed her to have a hip replacement following living in considerable pain for a number of years.” The knitter, Florence, is now back at work and able to walk with a crutch.
The benefits extend far beyond simply meeting physical needs. Ruth explains, “We love that we are able to teach a skill and offer employment to many ladies. Not only does this allow them to make enough money to feed their children and pay for school fees but it also gives them each a sense of value and worth as they have meaningful occupation.”
Ruth Hagan said of the experience, “It is great to be a part of positively impacting lives of so many in Zimbabwe.” Seeing how one charity is changing the lives of Zimbabwean women goes to show that any good deed, big or small, can have an immense impact.
– Olivia Booth
Photo: Flickr
Five Positive Facts About Global Poverty
Five Positive Facts About Global Poverty
Positive changes are happening, but society must never forget that one person being hungry is already too many. Together, the world can continue to move the needle in the right direction: the end of global poverty.
– Naomi C. Kellogg
Photo: Flickr
Efforts to Expand Education for Syrian Refugees in Turkey
Of the school-aged Syrian refugees living in Turkey, 612,603 were enrolled in either Turkish public school or temporary education centers as of October 2017. The Turkish government plans to close temporary education centers by the end of 2018. Approximately 300,000 refugee children attending these centers will be transferred to public schools and will transition to a Turkish-language curriculum. Another 360,000 refugee students who are not currently enrolled will also be sent to public school.
The Current Situation
For the first time since the policy was announced, more refugee school-aged children are enrolled in the Turkish public school system, at 59 percent, than in temporary education centers, 41 percent. The Turkish government plans to close all temporary education centers by the end of the year.
Temporary education centers teach an accredited curriculum in Arabic. For the past seven years, these facilities have provided education for Syrian refugees in Turkey in their mother tongue. However, these centers have been criticized for fostering cultural and linguistic separation between refugees and natives.
What Must Still Be Done
To accommodate the influx of students, the Turkish government is building 150 new schools with donated funds. However, this new construction will not adequately incorporate matriculating refugees from temporary education centers and additional funding is still needed.
Currently, the Ministry of National Education is adjusting to the increased number of students attending public school by sending some Syrian children to imam-hatip schools. Imam-hatip schools teach religious texts alongside other curriculum.
Critics of the new policy worry that Syrian students will drop out of school rather than attend Turkish-language public schools. Cultural tensions between Turkish and Syrian students, aggravated by resource shortages in public schools, could create hostile learning environments for Syrian children.
Working Toward Education for Syrian Refugees in Turkey
To mitigate the risk, the Ministry of National Education has declared that kindergarten and primary school are compulsory for all Syrian children. The government plans to enroll refugee children in intensive Turkish language courses to help students adjust to a Turkish curriculum. Also, refugee children will be offered additional classes on Arabic language and culture to help Syrian students stay connected to their heritage.
Additionally, to encourage older refugee children to stay in school, an E.U. program offers subsidies to Syrian schoolchildren. Subsidies are awarded to students who attend 80 percent of their classes and payments differ based on age and gender. Female high school students are entitled to the largest subsidies.
The Ministry of National Education’s public education initiative shows a real commitment to creating inclusive education for Syrian refugees in Turkey. Despite cultural and language barriers, more Syrian refugee children than ever before are enrolled in schools in Turkey.
– Katherine Parks
Photo: Flickr
Understanding How the U.S. Benefits from Foreign Aid to Angola
Angola continues to see repercussions from decades of war in the region. Roughly two-thirds of Angola’s citizens live in poverty, and much of Angola’s infrastructure has been destroyed by civil conflicts, war and lack of maintenance. The civil unrest in the region is also exacerbated by Angola’s possession of large oil reserves and a strong military force, creating a strong incentive for power struggles and polarizing forces in the region.
The U.S. benefits from foreign aid to Angola include providing food and food security, promoting democratic practices, providing disaster relief, providing better and more widely available health care and fighting the spread of disease in Angola. As well as these humanitarian efforts, the United States supports Angola in its efforts to utilize its agricultural abilities and sell oil reserves on the open market.
U.S. benefits from foreign aid to Angola have been in place since 1989 when the United States began providing large-scale disaster relief and humanitarian aid in the form of consumable material goods. In 1992, the United States Agency for International Development (USAID) began a relief and assistance program for Angola in the hopes that it would help prevent the region from falling back into the grips of civil conflict.
Unfortunately, the fighting did not stop and aid was suspended until 1995 when U.S. benefits from foreign aid to Angola resumed with millions being dispersed toward the rehabilitation of the agricultural sector and displaced children/orphans in the region. Much of the U.S. foreign aid dispersed during times of conflict in the area was provided in the form of material goods such as medical supplies and food, helping stabilize conditions and promote health and humanitarian causes.
Since the beginning of more peaceful times in Angola, U.S. benefits from foreign aid to Angola have provided over $1 billion in aid to programs directly helping the people of Angola. The year 2011 marked the 15-year anniversary of the full-time presence of USAID assistance programs in Angola, helping citizens rebuild and promote health standards in the country.
While aid dollars for humanitarian efforts have been successful in the region, it is important to remember that the primary U.S. benefits from foreign aid to Angola are to support leaders and governments that wish to take Angola down the road to a peaceful future. These aid dollars fund programs in Angola to increase credit access to citizens and governmental bodies, create fair and healthy economic conditions for trade and business expansion and create land registration systems to help prevent turf wars and property theft.
With the help of U.S. foreign aid dollars, Angola has made progress in installing leaders with a more peaceful vision for the future and a willingness to improve socioeconomic conditions for its citizens. The United States hopes to help Angola in its efforts to become the economic powerhouse it has the potential to be. With the help of programs like USAID, Angola has the potential to improve conditions not only for itself but the rest of Africa. With its agricultural and natural resources, Angola could prove itself to be one of Africa’s largest economic breadwinners.
– Dalton Westfall
Photo: Wikimedia Commons
Mexican Government Protects Peyote for Native Rituals
Tourists in Mexico Are Putting Peyote At Risk
Since it is illegal in Mexico for anybody who is not part of the Wixárika tribe to harvest and use Peyote, many tour guides take people to places where the cactus grows to let them reap the crop without giving them any instructions on how to sustainably harvest the crop. Harvesting Lophophora Williamsii using unsustainable methods is the main reason why the plant is at risk of being over-harvested.
It takes Peyote over 30 years to grow. Removing it in a way that is not environmentally sustainable poses the risk of destroying the ability of the Wixárika to use the plant for decades.
Methods such as GPS tracking units, security guards and fences have been used to stop poachers from illegally harvesting Peyote. Illegally collecting Lophophora Williamsii carries a jail term of up to 25 years in prison but most police officers in Mexico tend to took the other way when tourists steal the plant.
Lophophora Williamsii in Wixárika Rituals
The use of Lophophora Williamsii is an integral part of the religious experience for the Wixárika or Huichol Indians. Tourists who are harvesting Peyote on the sacred sites used by the Wixárika for generations are putting the rights of the Wixárika to use Peyote during their religious rituals at risk.
Pedro Medellin, who is running a study on the risks that tourists who harvest Peyote are putting on the Wixárika or Huichol Indians, stressed the importance of the cactus in Wixárika rituals to NPR. Medellin stated, “If Peyote disappears, then their whole culture disappears.”
Furthermore, NIERKIA, the Multidisciplinary Association for the Preservation of the Indigenous Traditions of Sacred Plants, published a pamphlet detailing some of the steps that the Mexican government could take in the future to protect Peyote so that the Wixárika always have access to Peyote during their rituals.
Inconsistent Laws Create More Risk
A loophole in Mexican law allows people to come to San Luis Potosi to consume Lophophora Williamsii in the desert without risking jail time. It is only illegal to harvest and remove the plant from San Luis Potosi to use it in other places. The Mexican government must have more consistent laws about the harvesting and use of Peyote in order to better protect it on the lands that are sacred to the Wixárika.
Even though it is a balancing act to protect the rights of native peoples while also promoting tourism to the area, it is important to ensure that native groups that live in a specific region are not forced to give up their traditional identity in the pursuit of economic prosperity. The Mexican government is beginning to help protect the ancient rituals of the Wixárika.
– Michael Israel
Photo: Flickr
Important Investments in Infrastructure by the World Bank
There are currently over 2,600 active projects worldwide ranging from financial risk management to roads and railways. Investments in infrastructure by the World Bank toward developing countries start in the billions of U.S. dollars. Here are the top five most expensive pledges for active projects in developing countries.
Eastern Dedicated Freight Corridor—II (India)
Active investments in infrastructure by the World Bank in India include the Eastern Dedicated Freight Corridor. It is an expansion effort that increases the reach and efficiency of freight cargo transportation in India’s northern and eastern regions, from Ludhiana to Dankuni.
The Eastern Freight Corridor, a project originally approved in October 2011, is a series of three projects that aim to double Indian Railways’ carrying capacity. In April 2014, the World Bank approved a $1.1 billion pledge, with a total cost of $1.65 billion, for the second tier of the project. This phase is set to build a 393-km, double-track, electrified, freight-only railway with a 25-ton axle-load at 100km/h. This sector will span between Kanpur and Mughal Sarai.
Uttar Pradesh, the most populous Indian state, stands to benefit from increased access to employment, health and education for its citizens by the de-cluttering of roadways. Once completed in December 2019, the full stretch of railway will be 1,839 km and is expected to reduce greenhouse gas emissions by up to 55 percent.
IN Swachh Bharat Mission Support Operation (India)
In 2015, the World Bank agreed to fund $1.5 billion of a $2.2 billion sanitation project, the Swachh Bharat Mission (SBM) Support Operation. The project focuses on the construction and promotion of using toilets in rural areas in India, in which 67 percent of Indians live.
The project is a part of a universal sanitation initiative that seeks to end the practice of open defecation by 2019. Ten percent of deaths in India are associated with poor sanitation. India also misses out on six percent of possible GDP due to insufficient sanitation. Further investments in infrastructure by the World Bank will provide $25 million to aid state training programs to encourage usage of toilets in rural areas.
PMGSY Rural Roads Project (India)
The Pradhan Mantri Gram Sadak Yojana (PMGSY) Rural Roads Project was established in 2010 when India’s National Rural Roads Development Agency and the World Bank agreed to a $1.5 billion deal. The project provides all-weather roads, servicing the states Jharkhand, Himachal Pradesh, Rajasthan, Meghalaya, Uttarakhand, Uttar Pradesh and Punjab.
The World Bank’s investment fully funds the PMGSY program for five years and covers civil works expenditures and furnishes a technical assistance program to assist agencies running it. PMGSY Rural completed work in April 2018 on a 7,000 km rural road, which is the longest road assembly in a year since PMGSY began in 2000.
This is the second of multiple investments in infrastructure by the World Bank as a part of the PMGSY project, the first being a $400 million loan in 2004. It connected 9,900 km of rural roads in Himachal Pradesh, Jharkhand, Rajasthan and Uttar Pradesh. The greater PMGSY project aims for 375,000 km of roads, linking 178,000 habitations and refurbishing 372,000 km of existing rural roads.
South-West Roads: Western Europe-Western China International Transit Corridor (Carec 1b & 6b) (Kazakhstan)
Investments in infrastructure by the World Bank in Kazakhstan look to improve road management and traffic safety. The South-West Roads Project was approved in 2009 when the World Bank agreed to fund $2.125 billion of the $2.50 billion total cost. The project includes constructing a 1,500-km road connecting China and Western Europe from the Aktobe and Kyzylorda district border to South Kazakhstan.
Road construction provides a local economic boost. The World Bank’s end of the deal employs 30,000 to 35,000 people. The cost of workers, subcontractors and materials boasts $1.6 million in spending power. Four thousand South Kazakhstan workers receive $600 a month, compared to the latest estimates that show the average Kazakhstan citizen earns $525 a month.
Eskom Investment Support Project (South Africa)
The largest, active investment in infrastructure by the World Bank is $3.75 billion, funding the Eskom Investment Support Project. Approved in April 2010, the total $10.75 billion project provides support for Eskom to enhance its energy supply and security.
Much of the funding was allocated for completion of the Medupi Power Station, the fourth-largest coal-fueled power plant. Stirring controversy, the plant is expected to add an annual 25 million metric tons of carbon emissions. Eskom is already reported to contribute to a 40 percent share of South Africa’s greenhouse gas emissions.
Eskom is South Africa’s state-owned primary electricity producer and Africa’s largest facility in electricity production. There is concern about Eskom as a monopoly producer of electricity and, accordingly, a call for more contributors in South Africa’s energy market. The National Union of Metalworkers of South Africa is currently pursuing a legal interdict from the Gauteng High Court in Pretoria in an effort to prevent Eskom from signing 27 renewable energy contracts.
As the World Bank continues to strive for its main objectives–decreasing the percentage of people living on less than $1.90 a day and spurring income growth for the bottom 40 percent–these projects, with such immense lending, are promising for the future of some of the world’s most economically vulnerable populations.
– Thomas Benjamin
Photo: Flickr
The Media Misrepresents South Africa: But Here’s the Good News
But there is more to South Africa than meets the media’s eye. It is a place with much to celebrate. Covering these points of pride is important for the morale of a country. Although the media misrepresents South Africa, some less-common stories with good news have made it through the cracks:
Selling Avocados in Record Numbers
For a country’s economy, agriculture is oftentimes a driving force. That’s why it is good news that South Africa is expecting to sell record numbers of avocados in 2018. After experiencing a drought in previous years, it comes as both good news and a pleasant surprise.
South Africa supplies a large number of avocados to European countries. Those in the country’s avocado industry hope to keep this market while opening up new ones this year.
Leading the way in Eco-Tourism
Tourists are taking advantage of the beautiful South African climate, and South Africa is taking advantage of the boosted audience for educating on water conservation.
South Africa is a world leader in conserving water in tourism-related facilities. The industry takes small, powerful measures to conserve water in restaurants and hotels. These measures rub off on those that visit the country. While the media misrepresents South Africa, ecotourism speaks for itself.
Making Breakthroughs in Renewable Energy
Recently, South Africa signed several agreements to drive renewable energy forward. The plans include constructing a new solar plant that will provide sustainable power for hundreds of thousands of South Africans. An agreement like this comes as no surprise, given the country’s focus on conservation.
For the U.S., this news is a much more productive story to read than those of corruption. The supplier of the solar power plant, SolarReserve, Inc. is a U.S.-based company. The good news for South Africa is both an economic and environmental benefit in America.
Improving Women’s Rights
Countries across the globe struggle with pay inequality. The unfortunate reality is that women, on average, earn less for performing the same work as men. South Africa is not immune to this problem, but the country has made considerable improvements for women.
By several measures, South Africa is making success in closing the pay gap. Women are being encouraged to take part in the business sector like never before. South Africa has been making steady improvement in this area as nearly one-third of the women in the country now have senior management roles.
Beyond this, women are engaging in entrepreneurial activity. Various programs help women to establish themselves and run prosperous businesses. When women’s lives improve, everyone wins. For women’s rights, the rest of the world could learn a lesson from South Africa.
Even though the media misrepresents South Africa, there is good news for this country spanning from women’s rights to avocados. Despite sensational stories of corruption, the real South Africa endures and its legacy will continue to endure regardless of news coverage.
That’s good news.
– Robert Stephen
Photo: Flickr
How the US Benefits from Foreign Aid to Côte d’Ivoire
A Strong Partnership
The U.S. has been building diplomatic relations with Côte d’Ivoire since 1960 when it became independent from France. The U.S. mainly focuses on four areas to assist Côte d’Ivoire:
In 1999, a coup in Côte d’Ivoire disputed elections and spurred rebellion. The U.S. assisted Côte d’Ivoire in moving beyond its decade-long crisis by restoring peace, offering more than 25 percent of the funding for U.N. operations in Côte d’Ivoire. Later on, the U.S. Agency for International Development promoted the African Growth and Opportunity Act (AGOA), which is a U.S. Trade Act issued on May 18, 2000.
U.S. Benefits from Foreign Aid to Côte d’Ivoire in Trade
Since then, the U.S. and Côte d’Ivoire have shared bilateral economic relations, and the amount of U.S imports from Côte d’Ivoire grew from $384 million in 2000 to $1,163 million in 2016. This is just one of the ways the U.S. benefits from foreign aid to Côte d’Ivoire.
Côte d’Ivoire is viewed as one of Africa’s fastest economic growing countries. From 2006 to 2016, Côte d’Ivoire’s gross domestic product has grown from $17.8 billion to $36.3 billion. In 2015, Côte d’Ivoire exported $12.7 billion in products and 29 percent was cocoa beans. Another noticeable product was refined petroleum, which composed 8.8 percent of the country’s exportation.
AGOA created duty-free imports for certain products from several sub-Saharan African countries. This act further stimulates the U.S. and sub-Saharan African trade and investment and integrates sub-Saharan African economy into the global picture.
Côte d’Ivoire’s economy is heavily based on the agricultural sector, especially cocoa beans. The U.S. is one of the biggest cocoa beans consumers and has easier and cheaper access to import cocoa beans from Côte d’Ivoire. In 2016, the U.S. had imported $834 million of cocoa beans from Côte d’Ivoire. AGOA eliminates extra costs for the U.S. on daily necessities. In this way, the U.S. benefits from foreign aid to Côte d’Ivoire.
A Boost for the Future
In Nov. 2017, Côte d’Ivoire signed $525 million compacts from the U.S. Millennium Challenge Corporation. The money will be spent in a five-year period to stimulate economic growth and eliminate poverty.
The government of Côte d’Ivoire will contribute another $22 million to various projects, such as the Abidjan Transport Project, which can maintain and improve transportation conditions. Another project receiving funding will be the Skills for Employability and Productivity Project, which will facilitate education systems and provide more opportunities to access secondary education.
Côte d’Ivoire is becoming an even stronger country with U.S. support. Its economic development is accelerating, and its social system is improving as well. Now, Côte d’Ivoire is trying to move its economic anchor from agriculture to other aspects. The U.S. benefits from foreign aid to Côte d’Ivoire will increase if Côte d’Ivoire can develop into a more integrated economic model.
– Judy Lu
Photo: Flickr