Fewer than 30 years ago, Croatia gained its independence from Yugoslavia, and now this newly independent country is working to find its place in the world economy. With assistance from the United States, not only can Croatia solidify a position, but also the U.S. benefits from foreign aid to Croatia.
The United States’ Foreign Assistance
The United States currently spends approximately $3.4 million on foreign aid to Croatia, with the largest expense being $1.1 million going to military training, $1 million on foreign military financing, $850,000 on mine and explosive remnants of war, $274,000 on counterproliferation programs and $60,000 on humanitarian and civic assistance. This aid not only benefits Croatia but brings many benefits to the United States, including:
- Alliance in international organizations
- Opportunity for new markets for the U.S.
- Foreign aid to Croatia keeps the U.S. safe
International organizations such as the North American Treaty Organization (NATO), and the European Union (EU) are key institutions in coordinating foreign policy to create diplomatic relations and tie nations together.
Foreign Policy Gains
The United States actively supported Croatia’s induction to NATO in 2009, and Croatia’s inclusion to the EU in 2013. According to the U.S. Department of State, Croatia, as a part of these institutions, has taken part in peacekeeping missions in neighboring countries — a priority that aligns with the U.S.
Interestingly, it is also the sector where $3.3 million of foreign aid to Croatia is spent. The U.S. further benefits from this relationship because it gains an ally that can help implement foreign policy, be an outlet for new trade partners or target worldwide policy goals such as global warming.
Economic Benefits
The U.S.-Croatia relationship also opens new markets for U.S. This is arguably the most prominent benefit to the U.S. One of the goals that the U.S. supported upon Croatia’s independence was developing a market-oriented economy.
This support has so far held true and consistent. U.S. aid to Croatia has helped enable the country in becoming a leading partner is southeast Europe. With Croatia’s induction to the EU, the United States has gained another market opportunity for many overseas industries.
Additionally, the United States has been identified as a potential energy partner, which is particularly important given the current energy crisis in Europe.
Nonprofit Organizations and Global Allies
Foreign aid to Croatia comes not only through official government channels, but also through nonprofit organizations. For example, SOS Children’s Villages International sends humanitarian aid to Croatia from the U.S., with the goal of alleviating poverty and helping children and families flourish in the newly independent country.
This benefits the United States as the aid brings individuals in Croatia out of poverty and into educational outlets and the economy, enhancing economic opportunity for the United States.
Many of the top trading partners with the United States were once, or still are, foreign aid recipients, including China, Mexico and Brazil. While these nations receive less aid now, they still receive U.S. foreign aid and simultaneously act as great trading partners for the United States.
Interestingly, Croatia poses the same opportunity. As the nation develops its economy in a post-war era, there is opportunity for new trade opportunities for the U.S.; such a possibility highlights how the U.S. benefits from foreign aid to Croatia.
But, U.S. benefits from foreign aid to Croatia don’t end there. All of these factors — foreign aid, these relationships and numerous economic opportunities — all work together to keep America safe. Economic opportunity, increased government accountability and lessened poverty help create a more stable nation, and pose a lesser risk to both involved nations.
How the U.S. Benefits from Foreign Aid to Croatia
Foreign aid creates diplomatic ties with other nations such as Croatia, and together can work to stop the spread of disease, terrorism and poverty, all of which pose threats to national security.
In one of The Borgen Project’s articles on the benefits of foreign aid, the organization posits a similar perspective to one referenced by Time Magazine — in a powerful statement by Bill Gates, founder of Microsoft, philanthropist and humanitarian: “[Foreign aid] represents less than 1 percent of the federal budget, not even a penny out of every dollar. It is some of the best return on investment anywhere in government.”
While the relationship between the United States and Croatia is still relatively new, U.S. foreign aid to Croatia is helping a nation to become a world player, while also benefiting the U.S. economically and politically.
– Katherine Kirker
Photo: Flickr
How US Relations with Algeria Help Both Countries
Algeria is a strategically located and capable partner with the U.S and has strong diplomatic, law enforcement and security cooperation. U.S. bilateral foreign help to Algeria is designed to strengthen Algeria’s capacity to combat terrorism and crime. Foreign assistance supports Algeria’s ongoing fight against Da’esh, Al-Qaeda in the Islāmic Maghreb and other hostile actors in the region. U.S. relations with Algeria foster cooperation between the two countries in their commitment to fighting terrorism.
Algeria was one of the first countries to condemn the 9/11 attack on the U.S. and committed its support to the U.S. in fighting the War on Terror in the years to follow. Both countries have intensified their relationship in recent years when it comes to counterterrorism and law enforcement cooperation. U.S and Algeria conduct frequent civilian and military exchanges. Algeria has hosted multiple U.S. senior military officials and ship visits.
Algeria and the United States enjoy deep relations, as demonstrated by the frequency of visits by Algerian and American officials. The Secretary of State held a strategic dialogue with Algeria’s Foreign Minister in April 2015, and the Deputy Secretary of State visited Algeria in July 2016.
Algeria has remained relatively stable despite turmoil in neighboring countries, and it is playing a constructive role in promoting regional stability. Both countries are now focused on increasing the number of reciprocal trade missions to further develop their trade and economic relations. U.S. relations with Algeria have helped strengthen this trade connection.
American companies operating in the hydrocarbons sector have had had productive partnerships with Algerian counterparts for many decades. More recently, both countries have recognized additional opportunities and are moving into other areas of interest, including agriculture, dairy cattle, energy equipment and public works machineries. Today, 190 American companies are operating in Algeria.
The 2001 Trade and Investment Framework Agreement has opened new dialogues and discussions to further enhance cooperation. The U.S. is one of Algeria’s top trading partners and one of the top trading partners in the Middle East/North African region. Funding through the Middle East Partnership has been allocated to support the work of Algeria’s developing civil society through programming. The U.S. government continues to encourage Algeria’s economic reform program, its move toward transparent economic policies and the liberalization its investment climate.
The United States and Algeria have continued to help each through cooperation in counterterrorism and trade relations. This has helped foster economic growth in both countries, and has provided each other with a committed partner to aid in fighting terrorism and bolstering the security of the two nations. U.S. relations with Algeria are a great example of how aid, cooperation and good relations can be of great benefit to any two countries entering into a partnership and have a positive effect on the world as a whole.
– Zachary Ott
Photo: Flickr
How One Nonprofit is Helping to Reduce Child Mortality Rates in Mali
Mali, a West African country with one of the highest child mortality rates in the world, has developed a health outreach program that is drastically reducing child mortality rates. Muso, a nonprofit organization, is fighting child mortality rates in Mali, where 78 percent of the population is living in some form of poverty.
Muso trains local Malians to become community health workers, who then go door-to-door in both rural and urban areas of the country to seek out sick children and provide on-site treatment. The healthcare package that the organization provides includes treatment for malnutrition, malaria and diarrhea, as well as family planning information. For only $8 per year per person, this program is able to provide healthcare services to millions of Malians across the West African nation.
Most of the community healthcare workers are women, giving the organization its namesake. In Bambara, a lingua franca and the national language of Mali, “muso” means woman. A well-known Malian proverb reads, “If you educate a woman, you educate her family, her community and her entire country.”
The program has been operating since 2005 and has already shown very promising results. Scholars from the University of Harvard, University of Southern California San Francisco and the Malian Ministry of Health conducted a repeated cross-sectional survey of the intervention from 2008 to 2011. The study found that during the time period, there was a decline in child mortality rates in Mali (child defined here as those under five years old). The study also identified that malarial and febrile illness treatment had nearly doubled during the time of the study compared to the national rates prior to intervention.
It is important to note, however, that the study was not randomized, so researchers cannot definitively conclude that the outcomes are a direct result of the program.
“The leading causes of child death are curable, but they are exquisitely time sensitive”, says Muso founder Dr. Ari Johnson. The organization seeks to remove barriers, such as fiscal constraints, to allow easy access to healthcare in Mali and eliminate preventable deaths that are rooted in poverty.
This nonprofit is reducing child mortality rates in Mali through incredible public outreach. Since the program’s inauguration, Muso has completed 3.2 million home visits with 93 percent of patients being treated within 72 hours, providing comprehensive and rapid care.
Not only is Muso providing healthcare, but it is also working with government-run health services to improve their healthcare delivery. Government-run clinics have fees and lineups that often create delays in care. Muso eliminates these barriers by bringing the care to patients and freeing up space in government-based clinics for those who cannot be treated at home. In addition, Muso provides training, staff and infrastructure to the government clinics, allowing more Malians access to healthcare.
Muso is demonstrating how one nonprofit can aid in reducing child mortality rates in Mali through a unique model of healthcare delivery and is removing barriers to access for many Malians. It will be interesting to see how the organization continues to expand and improve their work in Mali.
– Katherine Kirker
Photo: Flickr
Credit Access In Burkina Faso Is Slowly But Steadily Improving
In Burkina Faso, a landlocked country in West Africa, access to credit is very limited. Around 44 percent of the population lives on less than $1.90 a day, only 15 percent of the population has access to a checking account and a mere seven percent of the population has access to banking services.
But the scarcity of credit access in Burkina Faso is more reflective of the country’s socioeconomic structural barriers rather than a systemic lack of capital. The banking system is regulated by the Centrale des États de l’Afrique de l’Ouest (BCEAO) and is comprised of 12 commercial banks and five specialized credit institutions, and as of June 2011, the majority of these banks met the new capital regional requirement of CFAF five billion.
But credit access is generally concentrated to a few large clients, with collateral requirements and high interest rates of 10-12 percent, preventing the majority of small and medium sized borrowers from participation. Pervasive gender inequality especially exacerbates these high barriers of access for women. Women are typically confined to lower paid informal sector jobs (such as subsistence agriculture) and there is no legislation prohibiting discrimination in access to credit based on gender or marital status.
However, the recent implementation of microcredit initiatives has helped lower these barriers to credit access in Burkina Faso, especially for women in rural areas. One of these programs is part of the Victory Against Malnutrition Project (VIM) that works with 200 villages in the Sanmatenga province and is funded by USAID’s Office of Food for Peace, implemented by ACDI/VOCA, Save the Children and three local NGOs. For example, in 2015 through a partnership with the microfinance institution Caisse Populaire, VIM brought financial agents to the village of Ouintokouliga and offered education and access to financing options.
For village resident Nobila Koroga, access to this additional capital allowed her to buy more animals on her farm which, in turn, generated enough extra produce and additional income to create food security for her household, pay her children’s school fees and cover unexpected issues such as family medical visits. This is especially significant considering that Burkina Faso’s human development index ranking is one of the lowest globally and the country is especially challenged by low levels of education and healthcare.
As Koroga’s experience demonstrates, credit access is a crucial asset in socioeconomic development and empowerment. The government of Burkina Faso has recognized this and is making financial inclusion a priority, as outlined in a recent IMF report.
One of the goals of the government’s four-year National Plan For Economic And Social Development, which went into effect in 2016, is to bring broader banking service utilization rates to 35 percent by 2020. This will begin to be implemented in 2018 through the national inclusion financial strategy, which, alongside further expanding microcredit initiatives, also emphasizes mobile banking and the reduction of administrative barriers.
Additionally, on March 14, the IMF approved a three-year arrangement with Burkina Faso under its extended credit authority, totaling $157.6 million in support of these initiatives. While credit access in Burkina Faso, and banking more broadly, still has a long way to go in terms of inclusion, the success of these international collaborative microfinance initiatives and the country’s broader long-term strategy demonstrate it is embarking on a path toward success.
– Emily Bender
Photo: Flickr
Foreign Aid to Africa: The United States vs. China
President Trump’s proposed foreign aid cuts have sparked a bipartisan effort in Congress to resist them. Among the proposed budgets, foreign aid to Africa has been affected the most, expecting a 35 percent reduction. On the other side of the world, China is constantly boosting its aid package to African countries. Here is a comparison between the U.S. and China’s foreign aid to Africa over the years.
In the past decade, U.S. foreign aid has maintained at a steady level of $32 billion distributed over 200 countries. The Official Development Assistance (ODA) focuses on three regions: Asia, Europe and Africa. From 1980-2012, almost $120 billion went to sub-Saharan countries like Sudan, Ethiopia, Kenya and Congo.
While the overall ODA budget underwent a 17-fold increase from 1960 to 2006, aid to sub-Saharan Africa increased by almost 3,000 percent, from $211 million to $5.6 billion. The U.S. gave out $97.67 billion over 18 years in ODA to sub-Saharan Africa, with infrastructure projects (48 percent of total aid) and humanitarian aid (26 percent) being the top priorities. The health sector was given $6 billion, the agriculture sector received $4.2 billion and $3.5 billion was committed to education.
China has generated tremendous impact on the aid landscape in Africa since its rapidly increased activities. Unlike countries in the Organization of Economic Cooperation and Development, China does not officially disclose its aid information. In a research published recently, AidData, a research lab at William & Mary, claimed China committed $350 billion to foreign aid between 2000 and 2014, running close to the U.S. total of $394.6 billion.
From $210 million in 2000 to $3 billion in 2011, Chinese investment in foreign aid to Africa experienced a dramatic increase. By 2009, China gave about RMB 250 billion of foreign aid to the world, with almost half (45.7 percent) of the total Chinese aid going to African countries.
Driven by natural resources and its own international economic development agenda, China drew an obscured line between investment and development assistance. Angola, Ethiopia, Nigeria, Sudan and many other countries rich in natural resources like oil, gas and minerals are on the top recipient list of Chinese foreign aid.
In terms of aid priorities, like the U.S., China committed aid to infrastructure development, but with different focuses. Between 2000 to 2013, nearly 60 percent of the total aid went to transportation ($29 billion), energy ($25 billion) and communication ($6.9 billion). After China’s arrival in Africa in early 2000, U.S. foreign aid also shifted to prioritize health and education. U.S. spending on the top three sectors for Chinese aid are only at 2.6 percent, 0.8 percent and 0.07 percent of the total ODA amount.
The emergence of China as a major player in the development of African countries did heat up the competition with the U.S., especially in terms of using foreign aid as a venue to strengthen the donor’s power among developing countries.
Chinese development assistance and other transcontinental infrastructure projects to Africa, like $900 billion to the One Belt One Road Initiative, are growing, but the Trump administration aims to slash the foreign aid budget in 2018, especially the aid to Africa, citing corruption as the main reason. The proposed cut encountered fierce opposition in Congress and was deemed simplistic and arbitrary by Senator Patrick Leahy, the Senate Appropriations Committee’s top Democrat.
On the other hand, China is seeking to establish an international development cooperation agency to coordinate its foreign aid, which “gives China an advantage over the U.S. in the approach to managing foreign aid to Africa,” said China Daily in an editorial on Secretary Rex Tillerson’s visit to China.
Congress will continue to challenge Trump’s proposed cuts and the fight against poverty in Africa will continue.
– Chaorong Wang
Photo: Flickr
Addressing Food Security in Pakistan Through Policy Change
The ultimate objective of the new Pakistani National Food Security Policy is to raise the agriculture growth rate to 4 percent per year. Though 4 percent may seem like a minuscule number, it will be no small feat for the Pakistani government to accomplish. The agriculture growth rate has been relatively low over the past decade, averaging about 2.5 percent since 2008. Increasing that number will require a lot of changes to be made.
One issue brought up in the Pakistani National Food Security Policy is the lack of modern technology in the agriculture sector. According to the report, Pakistani farmers do not have access to machinery such as rice transplanters, vegetable planters, fruit pickers and other useful tools that would allow them to run their farms more efficiently and turn larger profits. To mitigate this problem, the new policy will reduce taxes on imports of farm machinery and create incentives for farmers willing to adopt newer technologies.
Another obstacle farmers are having to face is the increasing effects of climate change. Factors like drought and extreme weather fluctuations can have devastating impacts on crops and livestock and leave farmers with nothing to produce. One of the ways the Pakistani National Food Security Policy will attempt to alleviate the effects of this crisis is by investing in biotechnology and the genetic alteration of seeds to better resist drought and temperature changes. The policy will also promote crop insurance schemes and educate the public on which crops are more likely to survive in certain areas.
In addition, the new policy recognizes that many of the resources in Pakistan are not being utilized to their fullest potential. The country’s biggest crop is wheat, which is grown on 40 percent of Pakistan’s land and makes up more than 2 percent of the GDP by itself. However, there has been a global decline in wheat prices over the last few years and the government is thinking twice about having its entire economy rely on the success of one crop. Consequently, the Pakistani National Food Security Policy aims to focus more on cultivating fruits, vegetables, livestock, poultry and fisheries in the future.
Lastly, the policy addresses how unaffordable it has become for Pakistanis to purchase nutritious food. In response to this problem, the government hopes to devote more energy to continuing and creating programs dedicated to reducing poverty and hunger on the local level. Along with the strategies mentioned above to increase profits for farmers, this should be a great help with increasing food security in Pakistan.
It goes without saying that the Pakistani National Food Security Policy is an incredibly bold vision for the country, and it will require a lot of effort on the part of both farmers and the government. However, the fact that Pakistan is actively taking steps to eradicate food insecurity is a sign of hope for its millions of hungry citizens, and such a high goal may be exactly what the country needs.
– Maddi Roy
Photo: Flickr
Economic Development In Iran Could Help Reduce Poverty
Economic development in Iran seems to be on the horizon. The World Bank released a report called “Iran’s Economic Outlook” in which it states that 2018-19 will see an overall economic improvement in the nation as the increase in investments and the reelection of President Hassan Rouhani in May 2017 provides political stability.
Moreover, the GDP growth rate is estimated at 3.6 percent, and the International Monetary Fund projects the Iranian GDP to expand by 3.8 percent in 2018, for a future economic growth of 4.1 percent in 2022. According to many analysts, such unprecedented economic development in Iran is most likely due to the removal of international sanctions over the country’s nuclear energy program in 2016.
Iran’s Economy is On the Rise
Both the World Bank and the International Monetary Fund (IMF) have revealed that Iran has seen a staggering 12.5 percent increase of its GDP in 2016. The increase in oil output was a major factor toward such economic development in Iran, after restrictions on crude sales were removed.
Such economic improvement gives hope for a comprehensive reduction of poverty in Iran. In fact, the Institute for Management and Planning Studies has released a study in which it shows more than 900 figures of what the poverty line in Iran looks like.
Data of Economic Development
This data was collected from over 40 reports released by the Statistical Center of Iran, the Central Bank of Iran and other independent research centers. Furthermore, according to study co-authors and economists Majid Einian and Davoud Severi, 12.31 percent of all Iranians are poor and a total 10.61 percent of urban and 17.03 percent of rural households live in poverty.
According to the Financial Tribune, however, the Ministry of Cooperatives and Labor and Social Welfare draws the poverty line at $159 a month for a household of 3 to 5 members. Interestingly, the economists who led the study chose $61.3 for an individual living in urban areas and $38.6 for each person living in rural areas as the standard to define what living in poverty means.
As the World Bank has reported, Iran managed to reduce poverty to 8 percent between 2009 and 2013. However, the divide between rural and urban is still quite impressive. On average, in fact, poverty in rural areas is three times higher than in urban areas.
Action to Reduce Poverty in Iran
Between 2009 and 2014, the Iranian government took action towards the reduction of poverty by assisting its citizens with universal cash transfer. This action contributed to a economic growth of 1.3 percent of the bottom 40 percent of the population.
As far as other sectors of the economy are concerned, the World Bank foresees a growth of the agriculture at a rate of 4.1 percent in both 2018 and 2019 and of the industrial sector at 4.7 percent and 4.8 percent for 2018 and 2019 respectively, and the services sector is expected to grow at 3 percent and 3.4 percent. With these statistics in sight, the future of Iran’s economic development is promising.
– Luca Di Fabio
Photo: Pixabay
St. Jude Children’s Research Hospital Aids Children With Cancer Worldwide
Every year many families are confronted with the difficult diagnosis that their child has cancer. Researchers at St. Jude Children’s Research Hospital in Memphis, Tennessee are familiar with this harsh reality and are on a mission to bring needed resources to families of impoverished children with cancer worldwide.
According to pediatric oncology researchers, 80 percent of the 160,000 children that are diagnosed with cancer worldwide have limited access to quality care and thus have a lower chance of surviving the disease. St. Jude is leading the way people understand and treat childhood cancer and have established an initiative named St. Jude Global to help spread their valuable resources overseas to reach children with cancer worldwide.
About St. Jude Global
“St. Jude Global, a major expansion of the former St. Jude International Outreach Program, is a strategic initiative led by the St. Jude Department of Global Pediatric Medicine.”
The initiative is composed of researchers and healthcare providers who have brought together resources including quality facilities, treatment protocols and research programs to address the needs of children with cancer worldwide, especially those living in developing and third-world countries.
Collaborations have been established in Central and South America, the Caribbean, Africa, the Middle East, Asia and Oceania, as well as include over 28 countries as current beneficiaries.
Easing the Burden for Families
Over the years, St. Jude’s partnership with international organizations has helped reached vulnerable children in developing and third-world countries and brought progress to the sobering statistic of childhood cancer worldwide. Some of these programs include:
Progress So Far
As a result of St. Jude’s global partnerships with international organizations, thousands of children have benefitted from life-saving treatment.
In China, St. Jude’s collaboration with Beijing Children’s Hospital and Shanghai Children’s Medical Center increased the number of treated patients with ALL in mainland China from 10 percent before the year 2000, to over 90 percent as of 2014.
Furthermore, the Asociación de Hemato-Oncología Pediátrica de Centro América (AHOPCA) has been able to successfully fund treatment for thousands of cancer patients since the year 2000. Although there is still progress to be made with the fight against childhood cancer worldwide, St. Jude Children’s Research Hospital remains a strong force in the efforts to ensure that no child dies of cancer anywhere.
– Lois Charm
Photo: Flickr
Continued Progress for Credit Access in Bolivia
In one respect, the story of credit access in Bolivia has been particularly influential: commercial microfinance. When BancoSol, originally a charity sponsored by Acción Internacional, transformed itself into a microfinance commercial bank in 1992, it became the first chartered microfinance bank in the world.
The transition showed the country that microfinance could function without the largesse of nongovernmental organizations and within a commercial environment. Significantly, by proving this model was feasible, it provided a meaningful lesson for international observers.
Since then, the country has continued to burnish its legacy of credit initiatives in microfinance and beyond. It has consistently ranked highly in the annual Global Microscope, a report prepared by the Economist Intelligence Unit (EIU) that assesses the regulatory environment for financial inclusion in 55 countries.
In 2016, Bolivia ranked thirteenth of 55 and sixth of the 21 Latin American and Caribbean countries included, and in its 2015 report, the EIU highlighted the country’s Financial Services Law (FSL) as a key in moving toward greater financial inclusion. Whether the FSL, enacted in 2013, will achieve all its goals is yet to be determined, but evidence to date suggests the government’s initiatives have had their intended effect.
The law, among other objectives, mandates credit quotas and interest rate caps to encourage lending to designated productive sectors and social housing. This requires banks and other financial institutions to extend a minimum share of their credit toward these objectives at an affordable rate. A 2015 report by the International Monetary Fund (IMF) found that the requirements were spurring progress: total credit reached almost 46 percent of GDP in 2015 from 35 percent in the mid-2000s, and credit directed to the productive sectors and social housing increased 26 percent in the year leading to June 2015.
In combination with elements of the law improving deposit insurance and consumer protection measures, the FSL has laid the groundwork for furthering the expansion of credit access in Bolivia. As the IMF report emphasizes, the Bolivian financial system is fundamentally sound, but the methods employed to increase credit access do not come without risks.
In attempting to lower borrowing costs, interest rate caps can ultimately limit access to credit and hurt bank profitability, while credit quotas can lead to banks’ portfolios becoming over-concentrated and designated borrowers becoming over-indebted, as credit is extended disproportionately to certain sectors. The report stresses that managing these risks will be vital for the country to ensure its expansion of credit is healthy and sustainable.
Overall, from BancoSol’s breakthrough in the 1990s to modern regulatory initiatives, credit access in Bolivia has continued to expand. Given the capability of financial inclusion to economically empower the poor, it is likely to remain an important goal in the country for the foreseeable future.
– Mark Fitzpatrick
Photo: Flickr
How the US Benefits from Foreign Aid to Myanmar
Myanmar (formerly Burma) was once considered an outcast from the international community due to the oppressive, military junta that held power from 1962 until the 21st Century. It was not until 2011 that the nation embarked on their multi-year journey towards political and economic reform. Slowly but surely, Myanmar has begun implementing reforms that work to dismantle its previous, exclusive regimes that were in power for nearly 50 years.
USAID
A big part of Myanmar’s quest for an inclusive, parliamentary democracy and creating a market-oriented economy has been dependent on United States aid. Not only does the U.S. have a commitment to helping Myanmar achieve its gradual liberalization, but there are also a variety of U.S. benefits from foreign aid to Myanmar. Myanmar has immense economic potential, given that they are resource-rich with access to large, growing markets. However, due to decades of systematic corruption, the vast majority of the population have not been receivers of economic prosperity.
One of USAID’s main focuses within its quest to provide foreign aid to Myanmar is the empowerment of small-scale farmers. With agriculture taking up 70 percent of employment, USAID has invested in both agriculture and food security to reduce hunger and poverty.
USAID hopes that these investments in broad-based agricultural growth will not only help Myanmar’s small-scale farmers improve their connection to end markets, but it will also help keep an agricultural epidemic at bay; an occurrence which in turn, helps keep the U.S. economy stable.
Myanmar and Agriculture
The U.S. benefits from foreign aid to Myanmar through this process, as when Myanmar’s agricultural production is healthy and efficient, the U.S. economy has the potential to thrive off purchases of agricultural equipment from U.S. manufacturers.
Currently, Myanmar’s agricultural industry depends on traditional manual labor, and it lack advanced technologies that can add value to their goods. This is why developing Myanmar’s agricultural business is important for the U.S., as when Myanmar is able to produce products like rice, which accounts for 60 percent of their production value, at much quicker speeds, the price has the potential to decrease for U.S buyers.
Rohingya Muslim Refugees
In addition to supporting Myanmar’s agricultural industry, the U.S also contributes nearly $32 million in humanitarian aid to the Rohingya Muslim refugees.
The Rohingya Muslim refugees are a marginalized group forced to seek refuge in camps after the 2012 Rakhine State riots. Their involuntary removable from the predominantly Buddhist nation was a necessary measure to escape the systematic violence and persecution in their home country of Myanmar.
This crisis has greatly jeopardized the U.S.-funded progress Myanmar made in its move away from harsh, military rule to its now democratic state.
U.S. and Internationalism
However, the U.S. benefits from foreign aid to Myanmar in this situation because it help calms international waters. Additionally, the distributed humanitarian aid funds are going a long way in helping these refugees, as it’s supplying food and medicalcare along with sanitation and shelter to a group in desperate need of support.
U.S.-funded aid to Myanmar is a huge factor in helping this developing nation regain full control of its political, economic and social states. Myanmar has already begun to see beneficial provisions that have shifted its connotation as an isolated economy to an invested focal point.
Road of Improvement
There has also been a rise in freedom of speech — in 2015, the country held its first free general elections since 1990. While there is still a continued military influence and weak points in parliamentary politics, the political trajectory of Myanmar is not one set in stone.
Patience is a key factor in allowing Myanmar to carefully and effectively regain control of its politics; it has been a strenuous past sixty years, and peace is not going to come overnight. With the continued help of the United States, both nations are on a likely road of positive improvements.
– Alexandra Dennis
Photo: Flickr
How the US Benefits from Foreign Aid to Croatia
Fewer than 30 years ago, Croatia gained its independence from Yugoslavia, and now this newly independent country is working to find its place in the world economy. With assistance from the United States, not only can Croatia solidify a position, but also the U.S. benefits from foreign aid to Croatia.
The United States’ Foreign Assistance
The United States currently spends approximately $3.4 million on foreign aid to Croatia, with the largest expense being $1.1 million going to military training, $1 million on foreign military financing, $850,000 on mine and explosive remnants of war, $274,000 on counterproliferation programs and $60,000 on humanitarian and civic assistance. This aid not only benefits Croatia but brings many benefits to the United States, including:
International organizations such as the North American Treaty Organization (NATO), and the European Union (EU) are key institutions in coordinating foreign policy to create diplomatic relations and tie nations together.
Foreign Policy Gains
The United States actively supported Croatia’s induction to NATO in 2009, and Croatia’s inclusion to the EU in 2013. According to the U.S. Department of State, Croatia, as a part of these institutions, has taken part in peacekeeping missions in neighboring countries — a priority that aligns with the U.S.
Interestingly, it is also the sector where $3.3 million of foreign aid to Croatia is spent. The U.S. further benefits from this relationship because it gains an ally that can help implement foreign policy, be an outlet for new trade partners or target worldwide policy goals such as global warming.
Economic Benefits
The U.S.-Croatia relationship also opens new markets for U.S. This is arguably the most prominent benefit to the U.S. One of the goals that the U.S. supported upon Croatia’s independence was developing a market-oriented economy.
This support has so far held true and consistent. U.S. aid to Croatia has helped enable the country in becoming a leading partner is southeast Europe. With Croatia’s induction to the EU, the United States has gained another market opportunity for many overseas industries.
Additionally, the United States has been identified as a potential energy partner, which is particularly important given the current energy crisis in Europe.
Nonprofit Organizations and Global Allies
Foreign aid to Croatia comes not only through official government channels, but also through nonprofit organizations. For example, SOS Children’s Villages International sends humanitarian aid to Croatia from the U.S., with the goal of alleviating poverty and helping children and families flourish in the newly independent country.
This benefits the United States as the aid brings individuals in Croatia out of poverty and into educational outlets and the economy, enhancing economic opportunity for the United States.
Many of the top trading partners with the United States were once, or still are, foreign aid recipients, including China, Mexico and Brazil. While these nations receive less aid now, they still receive U.S. foreign aid and simultaneously act as great trading partners for the United States.
Interestingly, Croatia poses the same opportunity. As the nation develops its economy in a post-war era, there is opportunity for new trade opportunities for the U.S.; such a possibility highlights how the U.S. benefits from foreign aid to Croatia.
But, U.S. benefits from foreign aid to Croatia don’t end there. All of these factors — foreign aid, these relationships and numerous economic opportunities — all work together to keep America safe. Economic opportunity, increased government accountability and lessened poverty help create a more stable nation, and pose a lesser risk to both involved nations.
How the U.S. Benefits from Foreign Aid to Croatia
Foreign aid creates diplomatic ties with other nations such as Croatia, and together can work to stop the spread of disease, terrorism and poverty, all of which pose threats to national security.
In one of The Borgen Project’s articles on the benefits of foreign aid, the organization posits a similar perspective to one referenced by Time Magazine — in a powerful statement by Bill Gates, founder of Microsoft, philanthropist and humanitarian: “[Foreign aid] represents less than 1 percent of the federal budget, not even a penny out of every dollar. It is some of the best return on investment anywhere in government.”
While the relationship between the United States and Croatia is still relatively new, U.S. foreign aid to Croatia is helping a nation to become a world player, while also benefiting the U.S. economically and politically.
– Katherine Kirker
Photo: Flickr