Archive for category: Aid Effectiveness & Reform

Information and stories about aid effectiveness and reform

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Poverty in Colombia: How Stratification Reinforces Inequality

Poverty in Colombia: How Stratification Reinforces InequalityColombia’s stratification system, originally created to fairly distribute utility subsidies, has shaped the classification of poverty in the country and it is now undergoing national reform. Launched in 1985 and solidified in the 1991 Constitution, the system divides neighborhoods into six socioeconomic levels. Authorities assign each area a stratum based on physical characteristics like road quality, construction materials and surrounding infrastructure. Strata 1 and 2 represent the poorest zones, while strata 5 and 6 represent the wealthiest. Strata 3 and 4 fall in the middle. Most classifications are the result of visual inspection, not household income.

Redistribution as a Barrier

The system’s intent was progressive. Higher strata would pay full or elevated rates for public services, effectively subsidizing lower-income households. Those in strata 1 and 2 receive discounts, while strata 3 and 4 are expected to pay market rates. But over time, the policy has increased inequality and distorted the measurement of poverty in Colombia, failing to reflect current economic conditions, thereby leading to mismatches. A struggling family in stratum 6 may pay full price, while a wealthy homeowner in a modest area may qualify for discounts.

A ScienceDirect study found that residents in middle-income Stratum 4 reported a higher quality of life than those in Stratum 6. It cited stronger community ties and a greater sense of safety. In lower strata, household income improved wellbeing, but in wealthier areas, social trust mattered more. The researchers concluded that Colombia’s current classification system may overlook the factors that actually improve people’s lives.

Outdated Metrics and Adverse Incentives

Poorer neighborhoods sometimes resist infrastructure upgrades to avoid reclassification and loss of benefits. In other cases, families face higher utility rates after a neighborhood improves, even if their income remains unchanged. Strata assignments have not kept pace with the country’s demographic shifts, rapid urbanization or population displacement from conflict. The result is a system that reflects outdated stereotypes more than present-day realities.

Strata affect more than just utility bills. Strata details appear on personal IDs and can influence access to bank loans, scholarships and job opportunities. “Stratum” has become a shorthand for class status—mocking someone as “estrato 8” (too rich) or “estrato 3” (unsophisticated) is common in daily speech. This reinforces classism, racial prejudice and territorial segregation.

According to the World Values Survey, as the BBC reported, Colombia ranks among the most socially distrustful countries in Latin America. During the 2021 protests, some residents in higher-income neighborhoods reportedly armed themselves against perceived threats from poorer communities. As noted by a 2024 Reuters report, many Colombians rarely interact with people outside their stratum. For wealthier residents, this makes it easy to ignore poverty altogether.

Colombia’s stratification system aimed to reduce inequality. Instead, it entrenched a modern caste order, where address often determines opportunity. These outcomes have prompted national efforts to rethink how Colombia targets poverty, from the delivery of public services to vulnerability assessment.

SISBÉN IV: A Data-Driven Alternative

The government’s primary tool for identifying and addressing poverty in Colombia is the System for Identifying Potential Beneficiaries of Social Programs (SISBÉN). It is a multidimensional classification system that evaluates households based on income, housing, health and education conditions. Its goal is to help social investment reach the most vulnerable populations.

SISBÉN IV, the latest version, classifies households into groups A through D, with Group A representing extreme poverty and Group D being nonvulnerable. The system shifts focus away from strata and toward individual vulnerability. It does not directly distribute aid, but it enables institutions like Prosperidad Social, ICBF and housing programs to allocate support more equitably. By relying on updated, verifiable data, SISBÉN improves targeting and reduces misclassification, helping ensure that those most in need are prioritized for public assistance.

Universal Income Registry: Replacing the Strata System

To modernize social policy, Colombia is preparing to launch the Universal Income Registry (RUI) in 2026. This system will eventually replace SISBÉN and the outdated strata model. Built on the Social Household Registry (RSH), the RUI will assess household vulnerability based on income, employment, education, housing conditions and health status. This reform will expand the national social registry from 35 million to up to 57 million people, creating a more accurate and unified platform for distributing subsidies.

The RUI aims to:

  • Identify subsidy-eligible families more accurately
  • Maintain Colombia’s principle of social solidarity
  • Reduce exclusion errors through real-time data
  • Improve transparency and efficiency in public spending

This shift toward income-based classification marks a fundamental departure from geographic indicators like strata.

Housing Reform: Mi Casa Ya

The Mi Casa Ya program is Colombia’s primary housing subsidy initiative. It provides down-payment and interest subsidies to first-time homebuyers from vulnerable populations, based on their SISBÉN group rather than strata.

Recent reforms have expanded the program’s reach beyond major cities to include rural and Indigenous communities. In addition to income requirements, applicants must:

  • Not own a home
  • Not have received prior housing subsidies
  • Meet minimum SISBÉN vulnerability thresholds

By using data to prioritize need, Mi Casa Ya makes homeownership more accessible and equitable for lower-income families.

A More Equitable Path

While Colombia’s stratification system has long reinforced inequality, reforms like SISBÉN IV, the Universal Income Registry and programs like Mi Casa Ya reflect growing efforts to reframe how the country defines vulnerability. These reforms reflect a shift in understanding and addressing poverty in Colombia, moving from geographic assumptions to individual need. By using data-driven tools, the country is working toward a more inclusive and equitable future.

– Jacobo L. Esteban

Jacobo is based in Cali, Colombia and focuses on Technology and Politics for The Borgen Project.

Photo: Flickr

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Policies to Reduce Poverty in Nigeria

reduce poverty in NigeriaNigeria, Africa’s most populous nation, has long struggled with high poverty rates despite its abundant natural resources. Recent estimates from the World Bank reveal that around 40% of Nigerians live below the poverty line. Rural areas are particularly affected, with poverty rates nearly double those of urban regions. This ongoing challenge to reduce poverty in Nigeria persists, even though Nigeria holds the title of Africa’s largest economy and remains a significant oil producer.

Early Policy Responses

A comprehensive effort to reduce poverty in Nigeria is the National Social Investment Program (NSIP), introduced in 2016. Key components include:

  • N-Power Programme. Targets unemployed graduates and nongraduates aged 18 to 35. It offers skills training, job placements and stipends. Since its launch, 960,000 participants have enrolled across agriculture, health, education and technology sectors.
  • Conditional Cash Transfer (CCT). Provides N5,000 monthly to extremely poor households. Beneficiaries must meet conditions like school enrollment for children and regular health checkups.
  • Home-Grown School Feeding Program. Supplies one nutritious meal daily to primary school children, boosting enrollment and supporting local agriculture.
  • Government Enterprise and Empowerment Program (GEEP). Offers microloans through platforms such as MarketMoni, FarmerMoni and TraderMoni to small businesses and artisans.

President Tinubu’s Antipoverty Initiatives

Since assuming office in 2023, President Bola Ahmed Tinubu has introduced several transformative policies:

  • Consumer Credit Scheme. Launched in February 2024, this program improves access to credit, allowing Nigerians to buy essential goods and build credit histories.
  • CNG Bus Initiative. Following the removal of fuel subsidies, compressed natural gas–powered buses were deployed in major cities to provide affordable transportation alternatives.
  • Renewed Hope Infrastructure Development Fund. A N20 trillion ($22 billion) fund dedicated to investing in critical infrastructure like roads, education, power and railways, aiming to stimulate job creation.
  • Expanded Conditional Cash Transfer Program. Extended to cover 15 million households, each receiving a monthly N25,000 to cushion economic reforms.
  • Food Security Council. Established to boost local food production and curb inflation. The Central Bank also supported farmers by distributing 2.15 million bags of fertilizer valued at N100 billion.

Positive Outcomes from Recent Reforms

Although many initiatives are still in early stages, initial results show progress:

  • Increased Government Revenue. The removal of fuel subsidies freed up more than N1 trillion in the first six months, according to the Minister of Finance, Wale Edun. These savings are being redirected toward development projects.
  • Growth in Foreign Investment. Exchange rate unification led to a surge in foreign direct investment. Investor commitments have surpassed $30 billion since the reforms began.
  • Agricultural Output Increases. Pilot regions report higher yields of staple crops like rice, maize and cassava, reflecting renewed government focus on agriculture.
  • Consumer Credit Expansion. As of November 2024, more than 25,000 civil servants accessed the credit scheme. Projections expect this figure to grow to 400,000 participants by the second quarter of 2025.

Looking Ahead

Poverty in Nigeria remains a persistent challenge. However, recent policy shifts under President Tinubu’s administration reflect a multi-pronged approach to economic recovery and poverty reduction. With early indicators of progress in government revenue, investment inflows and agricultural output, Nigeria is laying the groundwork for broader, long-term improvements. Sustained commitment to these reforms will be critical to achieving lasting change and improving livelihoods for millions of Nigerians.

– Vanuza Antonio

Vanuza is based in London, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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The Ongoing UK Strikes Indicate Greater Aid Needs Abroad

The UK StrikesRecent unrest amongst various public-sector industries in the U.K. has ballooned amid rising inflation and stagnating wages. The ongoing U.K. strikes appear to be a result of these issues, and to an extent, present a picture of the situations abroad and the need for aid.

Record Strike Action in Over 30 Years

Strikes seem to have almost become part of normal life in the U.K., with sectors engaging in industrial action ranging from public transportation to education, post services and health care. February’s strike of ambulance staff, nurses and physiotherapists marked the National Health Service’s most dramatic strike since its beginning 75 years ago. Yet, there is still no lasting solution in sight. Insufficient pay is the biggest reason for those taking part in strikes, as public-sector wages have not kept up with record-high inflation, which makes disposable income much tighter for those who work for government-controlled entities.

A Global Crisis

The ongoing cost of living crisis in the U.K., including sharp increases in the price of energy bills and food now at a 45-year high, is causing a lot of unrest within the country, but these problems are not unique to the developed world. If communities in one of the world’s wealthiest countries are struggling, it points to the harshness of the situation for those in low-and-middle-income countries. Inflation has been surging abroad also and is more likely to have devastating effects on communities that were struggling to attain basic life necessities before the price hikes. The U.N. estimated in the summer of 2022 that the increase in costs of food and energy will plunge an additional 71 million people into poverty, with forecasts suggesting that Sub-Saharan Africa and the Balkans could be two of the worst-affected regions.

The Bleak Situation Abroad

In 2022, strikes in developing countries’ health sectors were also widespread, including in Zimbabwe, where the government passed a controversial bill limiting workers’ ability to strike in 2023. Poor pay and working conditions were the underlying reasons for the strikes, with similar situations in Asian countries such as Sri Lanka where poverty levels continue to increase.

Why Maintaining Aid Is Essential

Delivering aid helps reduce political insecurity and the chance of conflict, which benefits all countries. Improving health standards abroad is also crucial for preventing the rise of global epidemics, such as the COVID-19 pandemic. There is also the potential for new markets to open in countries assisted by aid in the future. This is another economic opportunity for developed countries like the U.K. Finally, there is the opportunity to gain more soft power, or global political influence, through the maintenance of foreign aid. Improving existing friendships and partnerships can potentially result in positive outcomes for the countries involved. And developed countries working with less-developed nations in economically challenging times could be crucial for geo-political relations.

Looking Ahead

In the face of ongoing strikes and rising living costs, the need for aid becomes evident not only within the U.K. but also in low-and-middle-income countries facing similar challenges. Reports suggest that providing foreign aid is essential for reducing political insecurity, preventing global epidemics and fostering economic opportunities for both developed and developing nations. It also presents an opportunity to strengthen global partnerships and promote positive geo-political relations in economically challenging times.

– Hannah Naylor
Photo: Unsplash

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Localized Aid Efforts in Haiti

Localized Aid Efforts in HaitiA 2021 survey found that Haitians want to play a bigger decision-making role in the delivery of humanitarian aid to ensure its effectiveness. The majority of respondents not only want to see more localized aid in Haiti but greater transparency in aid distribution.

More Aid Needed Amid Latest Natural Disaster in Haiti

In August 2021, a 7.2 magnitude earthquake hit Haiti in the southern peninsula, leaving hundreds of thousands needing emergency assistance. A month after the earthquake struck, Ground Truth Solutions conducted a survey in partnership with The New Humanitarian. Their goal was to interview locals grievously affected by the disaster and their response to foreign aid and humanitarian efforts. After gaining feedback from 1,251 local Haitians, data found that those surveyed felt humanitarian aid “fell short of their expectations.”

Long-Term Needs for Localized Aid

The survey found that humanitarian aid for emergencies and other dire disasters often does not align with locals’ “long-term (or even medium-term) priorities.” Only 14% of respondents said they understood how decisions were made regarding who would receive aid and who would not. Additionally, 64% of respondents said that this type of emergency aid does not help their communities sustain an independent development pathway.

Additional responses affirm that Haitians want autonomous development and decision-making in the form of localized aid. They prefer programs that support the independent growth of their communities and oppose the idea of becoming overly dependent on foreign aid. While the survey showed that respondents overwhelmingly support the belief that “Haitians themselves, not foreign aid, should help each other in future disasters,” respondents concurrently felt that foreign assistance does little to prepare local communities for autonomous development.

The Atteindre (Attain) Project

One of the projects already implemented by the U.S. Agency for International Development that prioritizes community inclusion and localized aid in Haiti is the Atteindre (Attain) Project. In partnership with Mennonite Economic Development Associates, this project intends to help empower small local businesses in Haiti; funds will go toward supporting small businesses “develop business plans, access bank loans, [and] become formalized,” which will help increase their profits and Haiti’s overall economy. The Atteindre Project aligns with efforts for localized aid by working directly with Haitian organizations and helping business service providers. With support from USAID and MEDA, grants will be awarded to Haitian providers such as STRATÈGE, Agence d’Investissement et de Développement d’Entreprises, and Centre d’Entrepreneurship et de Leadership en Haïti to help support thousands of small, underserved businesses across Haiti with assistance, training and technical support.

USAID’s Commitment to Inclusion and Localized Aid Efforts

USAID recently announced its broader commitment to greater inclusivity and diversity in aid delivery across the globe. In a speech delivered on Nov. 4, 2021, Samantha Power, the administrator of USAID, vowed that the agency’s new path to “inclusive [international] development” focuses on making aid more accessible, equitable and responsible. In doing so, USAID commits to making international aid more responsive to local communities and prioritizing “listen[ing] to what our partners in the countries where we work are asking of us.”

Power says that moving forward, USAID commits to allocating at least one-fourth of its funds directly to local partners over the next four years and that by the end of the decade, at least 50% of their funds will help “place local communities in the lead to either codesign a project, set priorities, drive implementation or evaluate the impact of [their] programs.”

Localized aid efforts in Haiti, including working with local leaders and organizations, will serve communities’ needs by offering clearer, more poignant solutions. USAID’s commitment to amplifying local voices and organizations through partnering with local organizations and providers is exactly the promise Haitians are asking for.

– Ashley Kim
Photo: Flickr

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Greenland’s Foreign Aid Dilemma

Greenland's Foreign Aid
Many countries around the world benefit from foreign aid, but few rely on it for their livelihood. Greenland is one of the few countries that would struggle to exist at all without it, as Greenland’s foreign aid is essential to its economy. Each year, Denmark, Greenland’s former colonial ruler, gives the island nation about $591 million in subsidies. That represents about 60% of the Greenlandic government’s budget and comes to more than $10,000 for every person living in Greenland. The subsidy, however, is not the cure-all Denmark might hope it to be.

Greenland’s Foreign Aid and Social World

Greenland is a land of contradictions. It is the largest island in the world, yet has a population of fewer than 60,000 people. Its average income is about $33,000, placing it far above the international average, yet Greenland also suffers from a suicide rate seven times higher than in the United States, and a poverty rate of 16.2% as of 2015. Traditional practices remain the norm in many parts of the country. Fishing accounts for 90% of Greenland’s exports, and dog sleds are still a common sight in the island’s undeveloped interior.

How can Greenland receive so much aid and still suffer from such social ills? Part of the answer lies in international politics. Although Greenland is nominally independent, many of its politics are still under the control of Denmark. Worried about losing influence in Greenland, Denmark has often blocked other countries’ efforts to invest in Greenland.

For example, Denmark raised objections to a $12.1 million aid package to Greenland from the U.S. in 2020. While politicians raised some valid concerns about the package (particularly in light of President Trump’s tactless 2019 offer to buy Greenland from Denmark), the fact remains that foreign investment would almost certainly enrich Greenlanders. This would be especially relevant if Greenlanders, rather than Danes, were the ones to make decisions about foreign aid.

Potential Wealth in Greenland

On the other hand, Greenland itself enjoys huge sources of potential wealth. The island is strategically located in the arctic region. Greenland also possesses valuable mineral deposits in its interior, which global warming will eventually uncover. Unfortunately, Denmark’s reluctance to permit foreign aid, and a lack of local capital, have prevented Greenland from taking advantage of these resources.

Greenland’s dependence on Danish money is a major source of instability for the country. Were the Danish government to change its policy, Greenland’s fragile economy would collapse. Greenland’s reliance on fish also creates uncertainty, since fish prices tend to fluctuate quickly. Economic development, as well as investment from a variety of countries, would remove much of the country’s economic uncertainty.

The goal of foreign investment should be to make countries prosperous and, eventually, self-sufficient. Greenland, however, shows few signs of becoming more economically independent from Denmark. Greenland’s GDP has grown very slowly and actually shrank between 2013 and 2014, despite Denmark’s funding. Danish aid to Greenland seems to have become an absent-minded gift, rather than an aid program with a clear purpose and goals.

Consequences of Denmark’s Aid

If Denmark sticks to the status quo of offering aid but preventing others from doing the same, Greenland will continue to suffer from its high poverty rate. Denmark will still have to pay huge sums of cash to keep the Greenlandic economy afloat.

However, if Denmark were to permit more investment in Greenland and put more emphasis on helping Greenland achieve self-sufficiency, Greenland would become wealthier and its economy would be more stable. This would in turn benefit Denmark because Greenland would eventually no longer need so much financial support. Whatever Greenland’s foreign aid future holds, it seems clear that it can do better than the status quo.

– Thomas Brodey
Photo: Flickr

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India’s Foreign Aid Explained

India's Foreign Aid
The Republic of India receives millions of dollars each year in foreign aid. This money goes toward ending poverty and improving living standards. However, as India develops and modernizes, the government has started to lend a helping hand to poorer nations across the world. Many see India’s foreign aid as both a tool for diplomacy and an act of good faith. As in the words of India’s Development Partnership, its approach to foreign aid is, “shaped by India’s struggle for independence and solidarity with other colonized and developing countries and the inspiring leadership of Mahatma Gandhi…” The nation is transitioning from a recipient to a donor, as the nation often gives more in foreign aid than it receives.

By The Numbers

The Indian Government allocated $1.32 billion for foreign aid in its 2019-2020 budget year (around 0.3% of the budget). This amount follows a trend of India drastically stepping up its foreign aid over the past decade. The budget went from around $500 million in 2010 to a peak of $1.5 billion in 2015. Despite a three-year slump in funding, the central government is now stepping back up to the plate. The main focus of India’s foreign aid centers around the development and modernization of its recipients.

Most of India’s foreign aid goes to countries in Asia and Africa, as it seeks to improve relations with its neighbors and assert its global presence. The nations India is providing aid to include Myanmar ($56 million), Bangladesh ($24.5 million) and Bhutan ($392.7 million). Aid that these nations receive has the goal of promoting regional stability and creating higher living standards. The Indian Government has also taken more interest in Indian Ocean countries such as Mauritius ($161 million), Sri Lanka ($35 million) and The Maldives (~$81 million) to increase Indian presence in the Indian Ocean.

How India’s Foreign Aid Helps

India’s foreign aid goes to a variety of projects such as infrastructure, agriculture and energy. The nation has invested billions in infrastructure projects in nations like Nepal and Afghanistan, such as hydroelectric plants, dams and schools. Famously, India and Afghanistan finished the Salma Dam, renamed the Afghan-India Friendship Dam. The Dam cost India around $300 million and provides hydroelectric power and irrigated farmland to the surrounding area. Additionally, India gave millions in foreign aid to Caribbean nations to improve their renewable/clean energy sectors that combat pollution and environmental challenges.

India is also heavily active in humanitarian efforts and disaster relief, frequently giving out loans, medical supplies and other types of assistance. The Brookings Institute has even called the nation “The Neighborhood First Responder,” helping with disaster relief in Sri Lanka, Afghanistan and Myanmar. Humanitarian aid has gone to nations like Fiji after Cyclone Winston hit the nation in 2016. Recently, India has helped combat the COVID-19 pandemic through monetary aid, donating food and distributing vaccines. Brazil, which faces a vaccine shortage, received 2 million doses from the Indian government.

Indian-US Relations

India is a prime example of how U.S. Foreign Aid benefits all sides. Nations like the United States have invested heavily in India and continue to help the government combat problems that plague the nation. As a result, India and the U.S. are now close allies and often cooperate on shared goals such as combating environmental challenges and ending extreme poverty. The two nations also cooperate with each other in international organizations like the U.N. and IMF. Both nation’s economies benefit from a strong India, with bilateral trade totaling around $149 billion. A diverse array of U.S. businesses operate in India, from energy and infrastructure business to ones involving technology and entertainment.

– Malcolm Schulz
Photo: Flickr

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How an NGO is Eliminating Childhood Poverty

Eliminating Childhood Poverty
Compassion International is a child-advocacy ministry that pairs people with children living in areas of extreme poverty in order to release those children from all of poverty’s aspects. What makes the organization so unique is its strict focus on children, with the hopes of eliminating poverty in their lives by the time they reach adulthood. Its impact has been massive with a high success rate: children in its programs are 75% more likely to become leaders in their communities and 40% more likely to finish secondary education. Moreover, they are more likely to spend thousands of hours in safe programs. The organization that is garnering recent attention from professional athletes has been working toward eliminating childhood poverty for years.

How Compassion International Began

Rev. Everett Swanson founded Compassion International. He was troubled by the masses of war orphans he saw living on the streets in South Korea. Another morning, Rev. Swanson saw city workers throwing rags into the backs of trucks, which turned out to be the frozen bodies of the orphans on the street. When Rev. Swanson returned to the United States, he told people of what he saw and encouraged them to donate so they could sponsor the orphans and work toward eliminating childhood poverty. Within 10 years, Compassion International helped 108 orphanages and homes in South Korea by donating funds to purchase rice and fuel.

Compassion International’s Mission

The nonprofit uses a ministry-based program in order to release children from poverty. This includes helping with child development, which the organization believes will provide the children with the skills to succeed. Compassion International’s programs begin as early as when the child is in the womb, aiming to eradicate poverty from their lives by young adulthood. Primarily, the work it does is through child sponsorship, but it has implemented initiatives that help babies and mothers in order to develop future leaders and meet critical needs as well.

The Fill the Stadium Initiative

Compassion International works with thousands of churches in 25 countries across the globe. One initiative it is running in the United States currently is the Fill the Stadium initiative. Due to COVID-19, 70,000 children and their families who are in Compassion Programs are in extreme poverty. Athletes such as Nick Foles, Kirk Cousins, Case Keenum and Jaccob Slavin have donated and joined the leadership team, encouraging fans to donate if able. The recommended donation amount is $500, around the same price as a game-day experience for a group of four. About $500 provides a year’s worth of essential food, nutritional supplements, hygiene essentials and medical screenings for COVID-19 for a family and their children. So far, the Fill the Stadium Initiative has “filled” 47,587 seats to provide essential care and support for these families in crisis, raising $23 million from athletes and national leaders. Due to COVID-19, a halt to in-person sporting events has occurred. The hope is that the money a family would spend on a game would go toward those in need instead.

Former Quarterback for the Arizona Cardinals and team member for the initiative, Carson Palmer pledged to donate $300,000 and challenged others to match his donation. “This is an incredible opportunity for American families to help children who are in dire straits and truly fighting for their lives,” said Palmer in an interview with Fill the Stadium.

A Look into Compassion International’s Impact

In 2020, Compassion International surpassed $1 billion for the first time in the history of the ministry. That year alone, Compassion International served 2.2 million children across 8,000 frontline partners. Since 1952, the sponsorship programs have impacted the lives of over 4.2 million children.

Because of the work of Compassion International, partners across the world have obtained access to hygiene kits, lifesaving surgeries, academic scholarships, classes, bathrooms, emergency food and water, electricity and countless other life-saving services. The organization will continue to strive toward eliminating childhood poverty, and especially aiding children the pandemic has hit hard.

– Jai Phillips
Photo: Flickr

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Aid Transparency Index Improves Development Data

Aid Transparency Index Improves Development Data
Publish What You Fund: The Global Campaign for Assistance and Development Transparency, an NGO watchdog, created the Aid Transparency Index in 2010 to compare the levels of transparency among aid agencies. Today, it is the only independent measurement for transparency among major development agencies. It aims to improve the efficacy of development assistance by refining the quality of data that donors make public.

How Does it Work?

Donors that are part of the Aid Transparency Index have to meet at least three of four requirements, which are:

  1. The organization has to be in majority public ownership, with one or more governments as shareholders.
  2. Its main purpose must be either to provide development finance and/or aid across the world or to oversee the administration of these resources.
  3. It must play a leading role in setting finance and/or aid policy in its home country, sector or region.
  4. Its budget or resources must be at least $1 billion per year.

The donor’s commitment to transparency is measured by the existence of legislation or disclosure policies, intentions for International Aid Transparency Initiative (IATI) publication and the promotion of information access, use and re-use.

The Aid Transparency Index takes into account 35 indicators to monitor aid transparency, which have been selected based on the IATI Standard. The Index collects most of its information from organization websites, the IATI Registry or from national data platforms. Two of the 35 indicators collect information from other data sources for assessment purposes.

The 2020 Index

The latest index revealed that there has been a great improvement in the donors’ overall transparency since 2018. More than half of the donors on the list now rank as “good” or “very good.” This results from an increase in data quantity and quality in the IATI Standard, which has made data more centralized and accessible.

Eleven donors are now in the “really good” (meaning in between the “good” and “very good”) category, which constitutes an increase of four from 2018. Also, 15 donors are now in the category of “good,” two more than two years ago. These are the organizations with the highest ranks in the 2020 Aid Transparency Index:

  1. Asian Development Bank (ADB) — Sovereign Portfolio with a ranking of 98.0/100.
  2. World Bank, International Development Association (IDA) with a ranking of 97.1/100.
  3. UNDP with a ranking of 96.6/100.
  4. African Development Bank (AfDB) – Sovereign Portfolio with a ranking of 95.5/100.
  5. Inter-American Development Bank (IDB) with a ranking of 95.4/100.
  6. UNICEF with a ranking of 92.9/100.
  7. The United States, Millennium Challenge Corporation (MCC) with a ranking of 92.1/100.
  8. Global Fund with a ranking of 86.5/100.
  9. The United Kingdom, Department for International Development (DFID) with a ranking of 85.4/100.
  10. Canada, Global Affairs with a ranking of 80.9/100.

Addressing Shortfalls

Despite these improvements, gaps still exist between donor publications and their projected outcomes. Many organizations publish their objectives, but only a minority also publish information on the projects’ performances and evaluations. As a result, there are limitations to measuring the effectiveness and value of financial spending in development assistance.

So, to further improve development aid data, Publish What You Fund provides a series of recommendations to donor countries. This includes sharing more information on project results, publishing project budget documents and increasing the participation of stakeholders in partner countries. Altogether, this will contribute to building trust and increasing available information.

Why is it Important?

Today, billions of dollars of aid and assistance are going toward addressing the COVID-19 crisis, which highlights the crucial role that aid transparency plays and how it can contribute to better results when it is formalized.

“Aid transparency is a key way to improve the efficiency of resource allocation, coordination of the response, and for donors to learn from one another’s interventions,” says Gary Forster, the CEO of Publish What You Fund. “The Index provides an illustration of what’s possible when transparency is valued and institutionalized.”

– Helen Souki
Photo: Flickr

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5 Canadian Organizations for Indigenous Prosperity

Indigenous communities in Canada

The Canadian Constitution recognizes three Indigenous communities — First Nations, Métis, and Inuit. Here are five of the many Indigenous-led organizations in Canada, collectively working to create success and prosperity for Indigenous communities.

5 Canadian Organizations for Indigenous Prosperity

  1. First Nations Information Governance Centre – The First Nations Information Governance Centre (FNIGC) is working to achieve data sovereignty. With support from regional partners and a special mandate from the Assembly of First Nations’ Chiefs in Assembly (Resolution #48, December 2009), the FNIGC collects and uses data to “build culturally relevant portraits of the lives of First Nations people and the communities they live in.” Their motto, “our data, our stories, our future” reflects their vision of Indigenous stories being told by Indigenous people, for Indigenous people.
  2. Indspire – Indspire is using the gift of learning to help provide academic success and long-term prosperity with support through financial aid, scholarships/bursaries, awards, mentoring and physical resources.
  3. Aboriginal Financial Officers Association of Canada – Aboriginal Financial Officers Association of Canada (AFOA) is creating a community of Indigenous professionals by supporting successful self-determination through “improving the management skills of those responsible for the stewardship of Indigenous resources.” This includes aid in management, finance and governance.
  4. Reconciliation Canada – Reconciliation Canada facilitates the engagement of Indigenous and non-Indigenous people with meaningful conversations on reconciliation and the lived experiences of Indigenous people. They aim to inspire positive change and understanding. At present, the programs and initiatives offered by the charity are Reconciliation in Action: A National Engagement Strategy, Reconciliation Dialogue Workshops, interactive community outreach activities and Reconciliation Canada.
  5. First Nations Child and Family Caring Society – The Caring Society supports First Nations children, youth and families. The organization has been able to provide 250,000 services and products to Indigenous children by putting Indigenous children and families first.

These five organizations are just some of many who are working to support success and prosperity for Indigenous communities in Canada. Their work helps blaze a path for a brighter future for Indigenous people and the country alike.

– Jasmeen Bassi
Photo: Flickr

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Innovations in Poverty Eradication in Turkey & Foreign Aid

Innovations in Poverty Eradication in Turkey
Turkey is a nation that sits on Europe’s gateway to the Middle East. The country is physically located between Greece and Bulgaria on the European front and Syria, Iraq and Iran in the Middle East. Concerning rates of absolute poverty in Turkey, the numbers have decreased from 36.5% to 9.3%, since 2003. Also, Turkey ranks as the 19th largest economy in the world. However, recent financial challenges are threatening that status and potentially, future progress. Before there was a need to deal with the aftermath of the COVID-19 pandemic, Turkey tackled the Syrian refugee crisis. In this line of action, Turkey took on the responsibility of integrating and assimilating 4 million refugees. Fortunately, foreign organizations like the World Bank have made innovations in poverty eradication possible, empowering Turkey to pursue avenues of poverty eradication through domestic ventures.

Innovations in Poverty Eradication in Turkey (Rural Poor)

Policymakers in Turkey are aware of the weakest sector, namely agriculture. Both geographically and socially, workers in the agriculture sector in Eastern and Southeastern Anatolia, experience the highest poverty rate in the country. This figure is reported at 46.6%.

Development projects have been proposed by Turkey and are supported by a specialized U.N. agency called the International Fund for Agricultural Development (IFAD). The rural poor have been receiving aid for the last 30 years from the IFAD, amounting to about $189 of $661 million, spent across 10 projects. Notably, this aid has impacted 1.3 million households. Importantly, the IFAD has targeted rural infrastructure, which has been their greatest investment. The construction of roads in villages, as well as investments in irrigation, led to the improvement of markets and mobility. In a broad analysis, these elements in society help improve the quality of life for the rural poor. Moreover, it is the rural poor who are most affected by inequality and a lack of resources.

Innovations in Poverty Eradication in Turkey (Refugees)

The Emergency Social Safety Net program (ESSN) was implemented in November 2016, to provide refugees with their essential needs via monthly cash transfers. Innovations in poverty eradication in Turkey are crucial as poverty affects about 76% of ESSN refugees. The Facility for Refugees administers ESSN in Turkey and the E.U. (i.e. its member states) also have a financial stake in the program. This makes the ESSN the largest-ever humanitarian aid program financed by the E.U.

The World Bank also plays a major role in poverty eradication efforts and calculations in Turkey. The World Bank recently reported that the implementation of phone surveys is underway, to help mediate the refugee population. As a result, Turkey is now able to track levels of poverty and assimilation among refugees within five subnational regions.

Ultimately Turkey has the right programs and the right international bodies in place to continue trying to combat poverty. Yet, poverty in Turkey remains complex. In addition to the reality that COVID-19 disproportionately affects poorer communities, Turkey must be mindful of integrating millions of refugees with different backgrounds, into Turkish society. Having fewer resources to do so, the government agenda necessitates a shift to a focus on the economic crisis.

– Ilke Arkan
Photo: Flickr