When U.S. citizens are asked to name the percentage of the federal budget they believe is spent on foreign aid and relief, the consensus sits at 31 percent. Only three percent of Americans correctly estimated the federal spending at less than one percent of the total federal budget. Even though its a fraction of the overall budget, the U.S. benefits from foreign aid to China.
The Beginning of U.S. Foreign Aid
Secretary of State George Marshall started the first U.S. foreign aid program shortly after World War II. After the war, many countries and cities in Europe were left devastated and needed assistance in rebuilding their infrastructures, charging their economies and stabilizing the affected nations.
Congress realized the stark importance of building an international community of nations where citizens’ security, liberties and right to economic prosperity are sustained by working together. President John F. Kennedy signed the Foreign Assistance Act into law in 1961, embodying the traditional American ideology of humanitarianism. The aim of foreign aid is to reduce:
- Hunger
- Poverty
- Illness
- Ignorance
Foreign aid fosters relationships with developing countries. The U.S. benefits from foreign aid to China, having sent millions over the last several decades. The receiving nation of foreign aid benefits from the resources to advance the quality of life for its people. The U.S. benefits by sharing Western ideology, increasing security and promoting economic interests.
Serving Economic Interests
Investing in another nation’s economy leads to the economic expansion of free markets and encourages global trade. Positively impacting foreign economies provides huge benefits for the American economy as the world moves quickly toward one global economy. Due to U.S. foreign aid to China, China has risen to the second largest economy in the world. This makes China a key contributor to growing and rebalancing the global economy after the financial crisis of 2008. China’s economic interests closely align with the West as it strives to grow its GDP and bring economic opportunity to its people.
In 2017, the U.S. spent $20.2 million on foreign aid to China. The third largest spending category for that foreign aid is in economic development at $2.98 million. The U.S. benefits from foreign aid to China are seen through improvements to private sector competition, contribution to free Chinese markets and the global trade economy. U.S. economic interests, markets and trade benefit from these investments in the Chinese markets.
As millions of Chinese citizens move out of poverty and into a growing middle class, companies see emerging markets in the untapped potential consumers of American goods. Boeing is an American aerospace company that has quickly become the largest in design and manufacturing for international commercial jetliners. In recent years, China’s Aviation Supplies Holding Co. has ordered 300 commercial aircrafts to be manufactured and delivered through 2020.
Boosting Security
The economic expansion of free global markets not only improves the American economy, due to the interconnectedness of global markets, but it also works to ensure the growth of stable democracies. The U.S. benefits from foreign aid to China through the fostering of long-term relationships with developing nations. In the process, the U.S. creates loyal allies who directly benefit from the interests and social ideologies on individual liberties that lead to the formation of stable democracies.
The presence of stable democracies around the globe prevent dangerous vacuums that can be filled by extremists who do not share American interests and ideologies of individual freedom. In 2010, fifty U.S. generals met with Congress to express the need for increased spending in foreign aid to protect the lives of American troops.
In 2017, China spent more than $700,000 on preventing the development, spread and use of weapons of mass destruction. The relationship between the U.S. and China is necessary for effectively combatting global terrorism. In addition, China consistently sides with the U.S. on foreign issues related to North Korea and Iran. Continually, the U.S. benefits from foreign aid to China through U.S. soldiers overseas by working to reduce the threat of harm and to stabilize regions.
Increased growth, development and productivity shows how the U.S. benefits from foreign aid to China, as does the rest of the world. Financial aid works to strengthen international relations while reducing global threats of violence by preventing power vacuums where radical ideologies can take hold. Furthermore, financial aid to China facilitates the spread of American and Western ideologies and empowers the global economy by the growth and spread of free markets.
– Kelilani Johnson
Photo: Flickr
Top 10 Facts About Poverty in Nigeria
Nigeria is known for having one of the more affluent economies in Africa; a large oil drilling industry ensures that the country always has a consistent revenue stream. But the lives of people in Nigeria reflect poverty rather than affluence — here are the top 10 facts about poverty in Nigeria:
The Top 10 Facts About Poverty in Nigeria
The Need for Diversification
These facts about poverty in Nigeria make one thing clear: the nation needs to diversify its economy and prepare its younger generation by emphasizing education. The high level of homelessness and poverty is a stark contrast to the country’s relative affluence; although statistics show that poverty in Nigeria is on the decline, the progress is sluggish. In the meantime, upwards of a hundred million people undertake a day-to-day struggle to scrape by.
– Sam Bramlett
Photo: Flickr
The Top 10 Need-to-Know Facts About Poverty in Ireland
In Ireland, the number of people living in poverty is steadily increasing. Since the beginning of the recession in 2008, the number has risen due to situational factors, such as unemployment and poor health, and exacerbated structural economic inequalities that perpetuate a cycle of poverty in Ireland.
Top 10 Facts about Poverty in Ireland
Even though there are still many steps needed to overcome poverty in Ireland, the Irish people are highly resilient. The 2017 World Happiness Report found that Ireland is the 15th happiest country in the world. Additionally, the report found only a small loss in happiness among the Irish people since the 2008 recession, and a high number of people reported they have someone to count on — strengths necessary to survive hardship.
– Hayley Herzog
Photo: Flickr
Developments In Sustainable Agriculture in Sao Tome and Principe
Sao Tome and Principe is a small island nation in Africa, close to the equator. It has a population of less than 200,000, and extreme poverty is widespread in the country, particularly in rural areas.
Sao Tome and Principe is Africa’s smallest country geographically and relies heavily on agriculture, specifically the production of cocoa. Approximately 95 percent of the country’s exports are in cocoa; however, due to recent droughts and a lack of sustainable agriculture in Sao Tome and Principe, production has steadily decreased.
Current State of the Economy
Roughly 60 percent of the nation’s employment is in the rural sector and as of 2016, the unemployment rate was just under 14 percent. Since the nation is so small, the economy doesn’t have much room to grow — it increases approximately four percent per year. This growth is not enough for the country to sustain itself, and due to the lack of sustainable agriculture in Sao Tome and Principe, the economy cannot flourish or grow any more than it currently is.
With a sustainable agriculture system, the country will be able to decrease poverty, increase employment, and by extension, better the economy.
Efforts Towards Sustainable Agriculture
Since the late 1980s, the World Bank introduced and implemented projects in Sao Tome and Principe to help strengthen the country’s agriculture and production. Though most of these projects have been met with limited success, the World Bank has invested over 20 million in Sao Tome and Principe’s agriculture over the years.
Most projects still being implemented by the World Bank are now dedicated towards financials and budgeting; however, the African Development Bank Group (AfDB) has taken over improving and developing agriculture within the nation.
In November 2010, AfDB introduced the Infrastructure Rehabilitation for Food Security Support Project (PRIASA). The aims of this project are to increase appropriate infrastructure and support rural communities in creating sustainable agriculture in Sao Tome and Principe. These efforts will increase crop production in these areas as well as create more jobs thus decreasing unemployment.
Improvements Already Underway
Sao Tome and Principe has already reaped benefits from the project in the last seven years. The nation has integrated gravity-fed irrigation systems, built greenhouses and created and installed solar dryers. All of these improvements can hopefully lead to the continued presence of sustainable agriculture in Sao Tome and Principe.
The project also helps support the infrastructure development needed to create sustainable agriculture. AfDB has roads, offices and modernized technology in Sao Tome and Principe, and so far, the project has reached over 10 thousand beneficiaries.
Training and Continued Development
Training is also a part of the initiative. Over 100 technicians and officials of the Ministry of Rural Development in Sao Tome and Principe have been specifically trained in how to sustain the developments made to the country’s agricultural system.
While improvements still have to be made before the nation can state complete sustainable agriculture, Sao Tome and Principe is definitely making significant headway. With the groundwork laid, Sao Tome and Principe has a strong chance of making themselves a prosperous and fortified country.
– Courtney Wallace
Photo: Flickr
National and International Efforts to Increase Credit Access in Peru
The access to bank accounts is not what first comes to mind when one thinks of privilege, but this issue is a major reality for numerous countries. Amongst these countries lies Peru and its amount of accessible bank accounts and credit access for the financial institutions in the country.
Lack of Bank Accounts
Despite Peru possessing the fastest-growing economy in their region, having a bank account is not a common occurrence amongst the population. This lack is due in part to the absence of information available to people about their bank accounts, as well as services of banks being severely limited. These instances contribute to a common theme among Peruvian banks that incites little incentive in the citizens of Peru to create accounts.
General Absence of Financial Literacy
The lack of financial literacy in the country is another problem with credit access in Peru. Many Peruvians don’t have savings in a bank of any kind, and only 40 percent of people know how to calculate annual interest rates. With little to no financial literacy, Peruvians have a hard time putting their trust into financial institutions, especially when those institutions aren’t forthcoming with information about accounts.
Banks Withhold Information
For the citizens that do have bank accounts, their financial situation is not much better than citizens who do not because the banks of Peru often conceal information from the public about their own accounts. These instances make it hard for citizens to put their trust into banks, as these institutions are the ones keeping private information that should be available to account-holders.
Credit Impacts to Lower Income Individuals and Communities
This is especially crippling for the lower-income citizens. Those citizens with less substantial income, and who put their trust in banks have a very hard time finding out what their account balance is. This could have a supremely negative effect on families that do not have much and cannot afford to overdraft their account and go into debt. They would not know when their account was low, and therefore never know if they overdraft the account until it is too late.
The lower-income communities are also the communities that are comprised of lower education rates, an instance which is directly correlated to the lack of financial literacy in the citizens of those same neighborhoods.
The Grupo Monge and Credit Access in Peru
Despite their lack of financial literacy, the Grupo Monge (GMG) works with the Entrepreneurial Finance Lab (EFL) to help people with no previous credit history become financially literate and create bank accounts within the financial institutions of Peru. These efforts have the potential to help almost 12 million citizens of Peru.
The GMG has helped create bank accounts for more than 3,000 citizens without credit access in Peru. This fiscal growth increased the Peruvian market for financial institutions and helped many citizens become more financially literate in securing and monitoring their finances. These changes will have a positive effect on the Peruvian economy because with more citizens contributing to the credit of the country, the nation should continue to grow as a result.
– Simone Williams
Photo: Wikimedia Commons
6 Major Reasons for How and Why Social Enterprise Works
Traditional businesses measure their success by profit and how much they can bring shareholders. Social enterprises have multiple bottoms lines: profit, people and planet. Profit is important in sustaining a business, but the idea of corporate social responsibility (CSR) is gaining in popularity. Consumers educate themselves on products which leads businesses into action. Focusing on multiple areas of business (triple bottom line) is the crucially important reason why social enterprise works.
The Traditional Standard: Profit
Profit is an excellent measure of growth and is quantifiable. A business that has a surplus by the end of the year means bills were paid and employees provided for. It doesn’t hurt that investors or shareholders see a return on their money. If there is profit, that means the company is an asset to the economy; this then means more customers, more employees and more investors overall. This business detail remains a critical factor in why social enterprise works.
The Growing Standard: People
People want to be happy, and as most of a person’s waking hours are spent at work, these two aspects of life are thereby deeply intertwined. It’s becoming common knowledge that a happier employee means a more productive workplace. An employee who feels empowered and enjoys what they do generally equates to higher productivity and profitability.
Success with people can lead to 65 percent in higher share prices and 100 percent more job applications for the company.
The Growing Concern: Planet
Consumer understanding of the planet’s dwindling resources are slowly impacting their buying habits. There hasn’t been a huge move towards green living, but some like social enterprises make this a priority along with profit and people. A new awareness day, Overshoot Day, marks the calendar for when humanity has used up Earth’s resources for that year.
From 2000 to 2017, Overshoot Day crept up from late September to early August, almost by two months. Social enterprises have noticed this trend and are now making moves to change it through sustainable resources.
A Moral Solution: Changing the Trajectory for an At-Risk Individual
Many businesses might choose a social entrepreneurial path because there is an issue the organization wants to address. At the heart of freedom businesses (a subgroup of social enterprises) is the goal to hire at-risk individuals. Some businesses like Purnaa, a manufacturing business in Nepal, were inspired to create opportunities for marginalized people and survivors of exploitation. Others like Papillion Enterprise, an Artisan shop in Haiti, wanted to prevent orphans through job creation.
Using Resources to Continue the Process
A difficult move for many small social enterprises is growth, particularly in some countries outside of the U.S. There might not be property to mortgage against or the interest rate would kill the purpose. Some social enterprises — like Kairos Trader — use profits and fundraising to provide 0 percent loans to social enterprises. As business grows and money is repaid, the loan can then be cycled into another loan to help social enterprises start or step up.
Economic Growth: The Ripple Effect
This list would not be complete without mentioning social enterprises’ impact on economic growth– freedom businesses’ commitment to marginalised people and the Earth is why much of its social enterprise works.
Communities that may have been jobless or ostracised now have opportunities. Those with jobs are able to educate their children and become consumers which grows consumerism on a generational scale building the economy with it.
According to Matt Peterson, founder of Kairos Traders, every sector is needed to make a change for people and planet, but business offers a unique solution. It can seem counterintuitive to have a triple bottom line, but success is proving why social enterprise works.
Profit is needed to be able to grow and provide jobs and materials, but a business that bases its impact on community and planet is a more holistic approach that will bear more fruitful results.
– Natasha Komen
Photo: Flickr
What You Should Know: Top 10 Facts About Poverty in China
China is a heavily populated country in East Asia. Since the financial crisis in 2008, China has become the second largest economy in the world and the number one contributor to the world’s overall growth. With the impact China has and its status as a major tourist attraction, many people don’t realize that poverty within the nation’s walls is still quite common.
In as recent as 2015, there were 55 million poor people in rural areas. The World Bank explains that because of China’s fast-growing economy, it has brought on challenges such as high inequality, environmental sustainability issues and poverty. Thankfully, China is aware of these problems and works to eradicate poverty within its walls. With this in mind, here are the top 10 facts about poverty in China.
10 Facts About Poverty in China
A Bright Future
Even though these ten facts about poverty in China demonstrates the improvements necessary to eradicate poverty completely, amazing strides have already been taken by the country itself and the global community at large. Even after these accomplishments, China is not stopping the fight — the nation continues to work towards eliminating poverty completely. Thankfully, poverty in this nation is getting both national and international attention, making it an issue far from being ignored and thus better off for a solution.
– McCall Robinson
Photo: Flickr
How the US Benefits From Foreign Aid to Libya
Current Efforts
Currently, the United States is set to deliver $31 million in foreign aid to Libya in 2018. The United States Agency for International Development (USAID) estimates that half of this will be spent protecting the country’s weakened representative governing bodies and shifting the country’s values towards those of democratic governance and humanitarianism. The United States hopes to spread these values by working with smaller grassroots movements and entrepreneurs in order to establish a stronger civil society that will hold government officials accountable. The vast majority of the remaining half of the $31 million is aimed at stopping the spread of terrorist cells that pose a threat to Libyan citizens and the United States of America.
Protection from Terrorism
One of the primary reasons the U.S. benefits from foreign aid to Libya is national security. By fighting the spread of extremist groups and working to create a robust and peaceful civil society, the United States does more than spread humanitarian values; it also protects itself from future terrorist threats. In stopping the spread of terrorist groups such as the Islamic State in North Africa, the United States is halting the further spread of extremism and, with the development of a strong civil society, making it harder for terrorist groups to establish themselves in the region. Weak and vulnerable communities that are already lacking in civil and political rights tend to serve as prime targets for terrorist groups to infiltrate.
By strengthening these communities with foreign aid, the United States removes opportunities for the further expansion of terrorism and reduces the likelihood of violent insurgencies. In the long run, foreign aid to Libya is an investment in the continued security of the United States, and one of the proven strategies for solving the problem of extremism.
Economic Development
The remaining money that is not spent on fighting extremism and promoting humanitarian values in Libya is dedicated to the further economic development of Libya’s private sector. This is important to establish regional security, as a stronger economy helps build communities and promote a representative and accountable method of governance. Furthering the economic development of Libya also serves to benefit the economy of the United States. A Libyan populace with more spending capital, along with a stronger national GDP and a functioning government, promotes global economic development and provides a new market for exports from the United States, strengthening the U.S. economy and spurring the creation of new jobs.
Helping Others Does Not Hurt the U.S.
Americans often worry that spending money promoting the economic and political development of other countries somehow hurts the U.S. economy and the nation’s own citizens. This thinking is deeply flawed. Research shows the opposite to be true. The U.S. benefits from foreign aid to Libya, as the United States is not only helping Libyans lift themselves out of poverty and political turmoil, but such aid also improves America’s own national security and economic development. Clearly, continued investment in Libya vital is to future United States efforts at home and around the globe.
– Shane Summers
Photo: Flickr
Credit Access in Mali Needs Further Improvement
The Importance of Microfinance in Development
The practice of providing access to financial resources and small loans to those in developing nations, known as microfinance, has become the latest instrument in the effort to alleviate poverty. Too often, the world’s poor are denied access to loans, making it exceedingly difficult to start businesses or make capital investments that would enable them to improve productivity and elevate their incomes. Although microfinance across developing economies has yielded mixed results previously, the capacity remains for well-structured and pragmatically targeted initiatives to succeed.
Credit Access in Mali Denied
When these programs are successful, the implications can be powerful, especially for women and smallholder farmers. In developing economies, women reinvest 90 cents of each dollar they earn into “human resources” like healthcare, nutrition and education, according to a study conducted by the Harvard Business Review. This is substantially more than men and illustrates the impact small investment opportunities can have for the well-being of women and their families.
Despite this, securing loans is harder for women because most do not have property in their names to offer as collateral, typically make lending to them impractical. Furthermore, in Mali, 70 percent of loan applications sought by farmers are rejected because they are deemed risk-prohibitive. Because farmers’ incomes typically fluctuate with seasonal variance in agricultural output, banks are usually hesitant to provide financial backing.
Securing loans is also rare for farmers in Mali because banks focus primarily on commercial lending and often refuse the longer term loans many Malian farmers in the young mango, papaya and cashew nut industries need to get their businesses off the ground. Unstable political institutions in the country, like inconsistent enforcement of contracts, and poorly defined property rights further exacerbate these challenges.
Credit Where Credit is Due
An initiative which began in 2013 is addressing these issues and attempting to increase credit access in Mali. The Agricultural Competitiveness and Diversification Project by the World Bank seeks to “reduce the risk of investing in agricultural endeavors through technical assistance, new technology and greater knowledge of the supply chain and key actors,” according to World Bank Agribusiness Specialist Yeyande Kasse Sangho.
To provide loans, the program relies on the Innovation and Investment Fund (IIF) and the Guarantee Fund. The IIF offers a three-tiered lending system with each tier providing different levels of subsidies based on the size of the enterprise, with smaller enterprises receiving a greater subsidy. The Guarantee Fund, also financed by the World Bank, offers up to 50 percent of the loan guarantee, giving a needed cushion to the two commercial banks in Mali receiving the deposits.
In addition to this World Bank initiative, Mali sought in 2016 to improve access to credit by improving its credit information system regarding the regulations of credit bureaus in the West African Economic and Monetary Union. In 2017, it established another credit bureau, doubling-down on its resolve to ensure its citizens have access to capital.
With initiatives like these, Mali is demonstrating its commitment to making accessible credit the new normal for its people. Further improvement to credit access in Mali will only serve to assist in lifting more people out of poverty.
– Brendan Wade
Photo: Wikimedia Commons
National Security and Economy: US Benefits from Foreign Aid to China
The Beginning of U.S. Foreign Aid
Secretary of State George Marshall started the first U.S. foreign aid program shortly after World War II. After the war, many countries and cities in Europe were left devastated and needed assistance in rebuilding their infrastructures, charging their economies and stabilizing the affected nations.
Congress realized the stark importance of building an international community of nations where citizens’ security, liberties and right to economic prosperity are sustained by working together. President John F. Kennedy signed the Foreign Assistance Act into law in 1961, embodying the traditional American ideology of humanitarianism. The aim of foreign aid is to reduce:
Foreign aid fosters relationships with developing countries. The U.S. benefits from foreign aid to China, having sent millions over the last several decades. The receiving nation of foreign aid benefits from the resources to advance the quality of life for its people. The U.S. benefits by sharing Western ideology, increasing security and promoting economic interests.
Serving Economic Interests
Investing in another nation’s economy leads to the economic expansion of free markets and encourages global trade. Positively impacting foreign economies provides huge benefits for the American economy as the world moves quickly toward one global economy. Due to U.S. foreign aid to China, China has risen to the second largest economy in the world. This makes China a key contributor to growing and rebalancing the global economy after the financial crisis of 2008. China’s economic interests closely align with the West as it strives to grow its GDP and bring economic opportunity to its people.
In 2017, the U.S. spent $20.2 million on foreign aid to China. The third largest spending category for that foreign aid is in economic development at $2.98 million. The U.S. benefits from foreign aid to China are seen through improvements to private sector competition, contribution to free Chinese markets and the global trade economy. U.S. economic interests, markets and trade benefit from these investments in the Chinese markets.
As millions of Chinese citizens move out of poverty and into a growing middle class, companies see emerging markets in the untapped potential consumers of American goods. Boeing is an American aerospace company that has quickly become the largest in design and manufacturing for international commercial jetliners. In recent years, China’s Aviation Supplies Holding Co. has ordered 300 commercial aircrafts to be manufactured and delivered through 2020.
Boosting Security
The economic expansion of free global markets not only improves the American economy, due to the interconnectedness of global markets, but it also works to ensure the growth of stable democracies. The U.S. benefits from foreign aid to China through the fostering of long-term relationships with developing nations. In the process, the U.S. creates loyal allies who directly benefit from the interests and social ideologies on individual liberties that lead to the formation of stable democracies.
The presence of stable democracies around the globe prevent dangerous vacuums that can be filled by extremists who do not share American interests and ideologies of individual freedom. In 2010, fifty U.S. generals met with Congress to express the need for increased spending in foreign aid to protect the lives of American troops.
In 2017, China spent more than $700,000 on preventing the development, spread and use of weapons of mass destruction. The relationship between the U.S. and China is necessary for effectively combatting global terrorism. In addition, China consistently sides with the U.S. on foreign issues related to North Korea and Iran. Continually, the U.S. benefits from foreign aid to China through U.S. soldiers overseas by working to reduce the threat of harm and to stabilize regions.
Increased growth, development and productivity shows how the U.S. benefits from foreign aid to China, as does the rest of the world. Financial aid works to strengthen international relations while reducing global threats of violence by preventing power vacuums where radical ideologies can take hold. Furthermore, financial aid to China facilitates the spread of American and Western ideologies and empowers the global economy by the growth and spread of free markets.
– Kelilani Johnson
Photo: Flickr
Plans to Improve Sustainable Agriculture in Turkmenistan
The United States Agency for International Development (USAID) cites lack of management and effective irrigation systems as barriers to the implementation of sustainable agriculture practices. To address these barriers, aid organizations will not only need an effective irrigation plan in a country where, according to USAID, 80 percent of land is classified as desert, but will need to outline a sound managerial plan for maintaining it.
According to Support for Further Sustainable Agriculture and Rural Development in Turkmenistan (SARD III), the European Union has drawn plans for a four-year project. This complex initiative to improve sustainable agriculture in Turkmenistan required presentations in addition to a lengthy outline. In addition to government plans, aid organizations have chosen to address the issue through education and new technology.
Last fall, a partnership between The United Nations Development Program (UNDP), the Global Environment Facility and the Ministry of Agriculture and Water Economy of Turkmenistan resolved to construct a water pipeline to assist with the issue of sustainable agriculture. According to UNDP, a seminar was given in Ashgabat to outline the plan for the pipeline, explain its success in the past and discuss the importance of daily water conservation practices.
Education about effective agricultural methods has been adopted by other agencies as well. In a statement on the USAID Turkmenistan website, the organization claims to “…prioritize greenhouse horticulture, helping high-value fruit and vegetable growers, processors and marketing specialists connect with local and international markets.” Although the actions and projects by aid organizations as well as plans for improvement are important, aid organizations also emphasize education and explain ways people can make a difference in their everyday lives.
Although activists are doing what they can to address their concerns about sustainable agriculture in Turkmenistan, citizens also consider agriculture a priority and referenced agriculture in a 2015 UNICEF report about goals for the future. Aid organizations and volunteers aim to make sustainability projects a priority and to make sustainability plans a reality.
– Gabriella Evans
Photo: Flickr