Aid for Trade is a holistic approach to incorporating developing economies into global trade networks by assisting them in increasing exports and market access. Aid for Trade was initiated at the WTO Ministerial Conference in 2005, and the program has since increased its scope to include building production capacity (financial services, businesses, and industry), trade-related infrastructure (communications, energy, transportation), and trade policy and regulations.
When the Aid for Trade initiative began, it was unclear whether it would receive funding or be successful. Now that it has been implemented for over a decade, it is time to reexamine the links between trade, development, and poverty reduction that Aid for Trade aims to strengthen.
The principle behind Aid for Trade is that increased trade should benefit inhabitants of developing countries, whether or not they are directly involved in the program. One Aid for Trade program teaches Ugandan farmers how to grow and process dried fruit to be sold into the European cereal market. The farmers involved should benefit from increased income, market access, and productivity, and Uganda should benefit from increased exports.
Most evaluations of the effectiveness of Aid for Trade programs take place within 18 months of a given program’s initiation. This is not enough time to measure whether the program has truly been successful at reducing poverty in a sustainable way. Additionally, evaluations often do not take into account a program’s impact on those not involved; how did the fruit-growing education program impact farmers who did not receive additional training and support?
A new study on European trade assistance aid, commissioned by NGOs Traidcraft and the Catholic Agency for Overseas Development, suggests that there may be “hidden losers” to Aid for Trade initiatives. For example, South African fruit growers increased exports to Europe after trade sanctions were lifted. They earned higher wages and improved their standard of living. However, the demand for cheaper fruit also caused some growers to lower wages and to replace full-time employees with temporary, often migrant workers, who did not enjoy the benefits.
The study also found that the majority of trade assistance goes to middle-income countries rather than to the least developed countries (LCDs) that Aid for Trade is directed towards. Little evidence exists to prove Aid for Trade’s effectiveness in reducing extreme poverty; this is likely a result of short-term program evaluations that take place before real impact can be measured, as well as lack of donor interest in, and therefore funding for, impact evaluations.
Overall, there are many obstacles to determining whether or not Aid for Trade has been successful thus far. More thorough, accurate, and long-term evaluations of poverty rates are necessary in order to determine the tangible successes or failures of Aid for Trade.
– Kat Henrichs
Sources: OECD, International Center for Trade and Sustainable Development, The Guardian
Photo: European Commission
Does WTO’s Aid for Trade Reduce Poverty?
Aid for Trade is a holistic approach to incorporating developing economies into global trade networks by assisting them in increasing exports and market access. Aid for Trade was initiated at the WTO Ministerial Conference in 2005, and the program has since increased its scope to include building production capacity (financial services, businesses, and industry), trade-related infrastructure (communications, energy, transportation), and trade policy and regulations.
When the Aid for Trade initiative began, it was unclear whether it would receive funding or be successful. Now that it has been implemented for over a decade, it is time to reexamine the links between trade, development, and poverty reduction that Aid for Trade aims to strengthen.
The principle behind Aid for Trade is that increased trade should benefit inhabitants of developing countries, whether or not they are directly involved in the program. One Aid for Trade program teaches Ugandan farmers how to grow and process dried fruit to be sold into the European cereal market. The farmers involved should benefit from increased income, market access, and productivity, and Uganda should benefit from increased exports.
Most evaluations of the effectiveness of Aid for Trade programs take place within 18 months of a given program’s initiation. This is not enough time to measure whether the program has truly been successful at reducing poverty in a sustainable way. Additionally, evaluations often do not take into account a program’s impact on those not involved; how did the fruit-growing education program impact farmers who did not receive additional training and support?
A new study on European trade assistance aid, commissioned by NGOs Traidcraft and the Catholic Agency for Overseas Development, suggests that there may be “hidden losers” to Aid for Trade initiatives. For example, South African fruit growers increased exports to Europe after trade sanctions were lifted. They earned higher wages and improved their standard of living. However, the demand for cheaper fruit also caused some growers to lower wages and to replace full-time employees with temporary, often migrant workers, who did not enjoy the benefits.
The study also found that the majority of trade assistance goes to middle-income countries rather than to the least developed countries (LCDs) that Aid for Trade is directed towards. Little evidence exists to prove Aid for Trade’s effectiveness in reducing extreme poverty; this is likely a result of short-term program evaluations that take place before real impact can be measured, as well as lack of donor interest in, and therefore funding for, impact evaluations.
Overall, there are many obstacles to determining whether or not Aid for Trade has been successful thus far. More thorough, accurate, and long-term evaluations of poverty rates are necessary in order to determine the tangible successes or failures of Aid for Trade.
– Kat Henrichs
Sources: OECD, International Center for Trade and Sustainable Development, The Guardian
Photo: European Commission
Congressional Support for the Global Fund
On March 21, 2013, Congress reaffirmed its support for the Global Fund by passing a continuing resolution that ensures support and funding for the Global Fund to Fight AIDs, Tuberculosis and Malaria. Even with increased tension within Congress over budget cuts and a very tight budget, Congress has shown it understands how necessary and critical the work done by the Global Fund and its affiliates is in fighting these life-threatening diseases.
The Global Fund has helped combat these diseases and improve health by focusing on development assistance. A large part of its strategy has to do with providing the funds necessary in development and implementation of new technology and interventions that have and will continue to change the trajectory of these dangerous diseases. This funding comes from a lot of different sources, yet, the United States is by far the largest donor. With the US’s aid, the Global Fund is able to finance interventions in more than 150 countries across the globe.
This means that the world is on track to halve the amount of people affected by tuberculosis by 2015 (as compared to the 1990s numbers). Elimination of malaria in many territories is occurring and will continue to occur with the help of the Global Fund. New infections of HIV are on the decline in many countries as awareness and preventive methods are becoming more and more common. With the continued support of the United States – which comes across through Congress’ support of the bill – these numbers will only improve. The number of people affected by tuberculosis will continue on a downward spiral. More and more territories will be malaria free and HIV prevention will be a bigger concern than treating HIV.
– Angela Hooks
Source: allAfrica
Photo: The Global Fund
Scientists Use iPhone Microscope to Diagnose Parasites
Consider the public health benefits of having the ability to use an electronic device the size of a mobile phone to diagnose diseases usually requiring expensive lab equipment and logistical support. Well thanks to a group of innovative scientists operating in a remote area of Tanzania, the iPhone microscope could usher in the future of a technologically driven global health policy.
Using nothing more than an iPhone, a flashlight, tape, and a camera lens; scientists were able to use their iPhone microscope to detect parasitic worms in a group of 200 students located on the Tanzanian island of Pemba. Isaac Bogoch, a Toronto-based physician remarked, “To our knowledge, this is the first time the mobile phone microscope had been used in the field to diagnose intestinal parasitic infections.”
Parasitic worms – clinically regarded as Helminth infections – affect nearly 1.5 billion people, according to the World Health Organization (WHO). By utilizing the iPhone microscope, health care workers will be able to analyze samples quickly and in close proximity to the patient, allowing for immediate parasitic identification and treatment. Thus far, the iPhone microscope diagnoses have been 70 percent accurate, and with greater zoom capabilities and higher resolution, is expected to improve in the near future.
The potential benefits of the iPhone microscope in alleviating global health outbreaks is promising due to its portability and ergonomic efficiency. By utilizing readily available technology such as the iPhone microscope to combat disease, aid workers have found an indispensable ally in the mobile phone market.
– Brian Turner
Source: CNN
WHO Claims More Funding Needed to Fight TB
March 24th will be World TB Day, a day to raise awareness of tuberculosis and the numerous TB deaths each year. As the day of awareness approaches, the World Health Organization, along with The Global Fund, have sent out a plea for more funding into medicine research and distribution.
The WHO claims that $1.3 billion is the annual funding required to effectively combat the disease. In 2011 only $0.5 billion was made available for TB research to find a cure. As TB has historically changed to become vaccine-resistant, it is critical that funding continues to come in and grows in volume. Dr. Margaret Chan, director of the World Health Organization (WHO), is worried by the shortcoming in research funding at a time when the number of medicine-resistant examples of the disease are increasing.
Along with working to increase funding to TB research, the WHO and The Global Fund are trying to make existing TB medications more easily available in the developing countries that are most often effected by the disease. They continue to work with big pharmacy companies like AstraZeneca, Johnson & Johnson, and Otsuka to lower the cost of medications for people who currently can’t afford them. They are also allying with Medicins Sans Frontieres (MSF), also known as Doctors Without Borders, to help address the many issues that surround the efficient distribution of such medicine. Learn more about the efforts of MSF.
– Kevin Sullivan
Source: PM Live
Photo: Top News
How Foreign Aid Can Eliminate Poverty
According to the Oxford University Poverty and Human Development Initiative, the poorest nations in the world may be brought out of poverty in twenty years if current rates of development continue – a sure sign that foreign aid and global relief programs are working.
Oxford released the study after the United Nations published a report documenting that poverty reduction drives were exceeding all expectations. The study also noted that this was the first time in history that poverty has been beaten back so dramatically and quickly.
This type of shining development is the effect of the investment of foreign aid and development projects in helping communities establish higher standards of living and the infrastructure to help sustain those standards of living. The UN pointed out that trade had become an important factor in improving conditions in impoverished countries such as Afghanistan, Sierra Leone, Rwanda and Ethiopia.
As Secretary of State Kerry pointed out during his first address, eleven of the top fifteen trading partners of the United States were once beneficiaries of foreign aid. If advocacy groups continue to work toward sustainable development in impoverished nations, it’s possible a few of these countries will make that list in the coming decades. Among the current countries pushing forward, Rwanda, Nepal, and Bangladesh are the countries in which poverty is declining the quickest, followed closely by Ghana, Tanzania, Cambodia and Bolivia. In the three former countries, if poverty continues to decline at this rapid rate, it is projected that the global community can eliminate poverty within the current generation’s lifetime.
– Pete Grapentien
Source: The Guardian
Sir Richard Branson Makes Pledge to Give
Sir Richard Branson and his wife, Joan, have joined a handful of billionaires who have pledged much of their wealth to charity. Branson joined Warren Buffett and Bill Gates as the latest billionaire to make such a pledge as part of The Giving Pledge, started by Microsoft founder Bill Gates.
Branson, the UK’s fourth richest person, whose net worth is estimated at $4.2 billion, declared half of his wealth to charity in an open letter in which he also said that he would like to use a majority of his wealth to “make a difference in the world” through “entrepreneurial approaches,” also saying that money and objects do not bring happiness.
The entrepreneur behind the Virgin Group of companies, Branson went on to state that he and his wife realized how little they valued material possessions after a series of disasters caused them to lose a number of personal items, including a house in London that burnt down and one in the British Virgin Islands that was struck by lightning.
Richard Branson asserted that he and his wife would like a portion of their fortune to go towards creating a “healthy, equitable and peaceful world for future generations to enjoy.” The Giving Pledge, started three years ago by Gates, has already seen a around 30 additional American billionaires pledge a good amount of their wealth to charity.
– Christina Kindlon
Photo: Time
L’Occitane Supports Women’s Fair Trade
All proceeds made from the shea butter soap (that retails for just $8) will go towards building literacy programs and centers in Burkina Faso. Every soap bar sold can be considered as donating 3 bricks that will be utilized to build a new literacy center. From soap sales, L’Occitane, with its partners in Aide et Action and women in Burkina Faso, hopes to collect €63,000, which is equivalent to approximately $831,364.5, in the year 2013.
The soap can be seen as something that brings women together and helps empower them separately from their male counterparts. Since 2006, L’Occitane has helped almost 2,000 women become literate and even more (approximately 5,000 more) improve their literacy skills. With the building of even more literacy centers in Burkina Faso, these numbers can only go up.
If interested in buying a bar of soap in support of women achieving economic emancipation, visit L’Occitane’s website.
– Angela Hooks
Sources: L’Occitane Foundation, L’Occitane
Photo: L’Occitane
Paris Declaration on Aid Effectiveness
The five core principles of PDAE
Source: OECD
Photo: Flixya
Mobius Motors: The African Hummer
The horrid conditions of Kenya’s roads made Jackson realize how important improving their modes of transportation were to the country’s economy. “Transportation is as fundamental to developing countries as healthcare, education, markets and all the other things that drive prosperity,” he commented. While paved roads are slowly appearing around the continent, Jackson sees Mobius Motors, his company that builds “African cars for African roads,” as having the potential to change the way African businesses and trade functions.
Every aspect of the Mobius Two, the company’s prototype, was created with the average African entrepreneur in mind. With a steel frame, the car has no windows, eliminating the need for air conditioning. All parts of the car have been made in a fashion familiar to local mechanics so that repairs and parts are cheap and easy to come by. Due to its light frame and .4 gallon gas engine, the all-terrain vehicle can securely carry up to 8 passengers or 1,500 pounds. This makes it perfect for the transport of goods across long, rugged distances.
One thing Jackson makes sure people keep in mind about Mobius is that it is not a charity. He plans on making a profit once production begins, with an average price tag of about $6,000 per vehicle. However, the goal of his company is not to focus just on monetary value but to team up with innovators from around the world to recognize the change these vehicles can bring to the global market and change the way Africa moves.
It is obvious that Mobius’ clients will not be the average African villager. For those entrepreneurs looking to expand the reach of their businesses, the Mobius Two holds the key. While they may be the ones fronting the cost of the vehicle, the entire process will most definitely include and improve the lives of thousands across Kenya, and hopefully the rest of Africa, in the foreseeable future.
– Deena Dulgerian
Source: Global Post
The Wheelchair Foundation
Maintaining mobility and independence can be challenging for millions of disabled people around the world. While a physical handicap may make life more difficult no matter where you live, many physically disabled people in the developing world aren’t able to purchase a wheelchair either for lack of funds or they simply because aren’t available. That’s where The Wheelchair Foundation comes in.
The Wheelchair Foundation, a branch of the Global Health and Education Foundation, works to provide wheelchairs to the people that need them throughout the developing world. The chairs are given at no cost to the families that receive them. An estimated 100 million people in the developing world are physically disabled and either wheelchair-bound or in need of a wheelchair to move around. The Wheelchair Foundation works with many non-governmental organizations (NGOs) that operate in the countries to which the wheelchairs are delivered and from there, the chairs are equipped and delivered in person. The organization also distributes chairs to Americans in need by working with Goodwill, Catholic Charities, and groups that work to help American veterans.
Organizations such as this one are great because of their specialization and their use of existing networks. Specialization without the great connections could lead to a less efficient organization but utilizing their relationships with other NGOs and government programs allows The Wheelchair Foundation to be a real success that addresses an important problem that many people in the developing world face each day.
– Kevin Sullivan
Source: The Wheelchair Foundation
Photo: Mental Floss