Archive for category: Aid

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U.S. Signals Possible Change in Foreign Assistance Programs

In a recent internal memo titled “America First Foreign Assistance Policy,” U.S. Ambassador to the United Nations Nikki Haley outlines possible aid cuts to nations that vote against U.S. initiatives within the U.N. It is suggested that foreign assistance programs should be partially contingent upon voting with the U.S. at the U.N. The memo comes in the wake of the United States’ motion to move its embassy to Jerusalem, a move that recognizes Jerusalem as the capital of Israel.

Although the motion passed, it was also met with widespread condemnation; 128 countries in total condemned the move. In response, the United States threatened to cut foreign aid programs. Commenting on the vote at a recent AIPAC conference, Haley stated, “We’re not forgetting that vote. As I said at the time: On that vote, we were taking names.”

As of today, only Palestine has received cuts in foreign aid assistance. This is largely due to the Palestinian Authority’s refusal to enter into peace negotiations with Israel. In the view of the Palestinian government, the United States has lost its position as the neutral-party at the negotiating table.

A major element of Haley’s “America First Foreign Assistance Policy” is the direct link between foreign assistance programs and American security interests. For example, Iraq and Egypt remain exempt from cuts in foreign aid even though both countries have voted against the United States in the past on multiple resolutions. It is argued that continued aid to Iraq and Egypt is vital in protecting U.S. security interests in the Middle East.

Countries not exempted from cuts who offer the U.S. little economic or security benefit could see major shifts in aid assistance. Specifically, American foreign assistance programs in Ghana, Vietnam and Zimbabwe are under fire. $4.9 million to aid in Ghana’s construction of schools, Vietnam’s $6.6 million climate change program and a $3.1 million job training initiative in Zimbabwe are highlighted in the document. Currently, aid programs for roughly 40 countries who have voted against the U.S. in the past are under review.

In addition to the details of the “America First Foreign Assistance Policy” document, the State Department has put more than $100 million on hold in funding for the U.N. Relief and Works Agency (UNRWA). Another $100 million requested by the Bureau of Population, Refugees and Migration has also been denied. It is unclear as to why the funds have been denied or when they may be approved.

With the recent release of U.S. Ambassador Nikki Haley’s proposal for major changes to American foreign assistance programs, there is much concern for countries that receive U.S. aid, most notably for nations viewed as nonessential to U.S. economic and security interests. Furthermore, countries that lack a track record of voting with the U.S. on U.N. resolutions could face serious cuts.

It is unknown whether these policy changes will be formally adopted in Washington, D.C. The proposed changes have seen much backlash from both the Department of Defense and intelligence community. Ultimately, the American mission to eradicate international poverty and obtain global security is at risk.

– Colby McCoy

Photo: Flickr

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The Successes of Welfare Programs in Ethiopia

Welfare Programs in Ethiopia
Policy in Ethiopia has overwhelmingly been focused on combating and eliminating poverty in recent years. Many programs in Ethiopia have helped to further the country’s station in terms of poverty reduction. Programs such as the Productive Safety Net Programme (PSNP), the Sustainable Development and Poverty Reduction Program (SDPRP) and the Plan for Accelerated and Sustained Development to End Poverty (PASDEP) have been implemented recently to help Ethiopia meet its short and long-term goals. These goals, known as the United Nations Millennium Development Goals, are to:

  1. Eradicate extreme poverty and hunger
  2. Achieve universal primary education
  3. Gender equality and women empowerment
  4. Reduce child mortality
  5. Reduce maternal mortality
  6. Combat HIV/AIDS, malaria and other diseases
  7. Ensure environmental sustainability
  8. Develop a global partnership for development

Correspondingly, according to the United Nations, the Ministry of Finance and Economic Development in Ethiopia report, the World Health Organization and the World Food Programme, Ethiopia has worked towards these goals for several years now and is on track to achieve six of the eight goals listed above so far. The goal of reducing child mortality has already been achieved, and progress is being made on many of the others thanks to the work of the welfare programs in Ethiopia.

Goal One: Eradicate Extreme Poverty and Hunger

Ethiopia is on course to reduce extreme poverty in the country by half. The percentage of people living under the poverty line has decreased from 45.5 percent in 1996 to 29.6 percent in 2010. The welfare programs in Ethiopia have contributed to this progress in different ways. The PSNP has helped families avoid food shortages. The SDPRP focuses on increasing water resource utilization to ensure food security. The PASDEP strengthens human resource development, manages risk and creates employment opportunities.

Goal Two: Achieve Universal Primary Education

The net enrollment ratio for education in grades one through eight has increased from 77.5 percent in 2006 to 85.4 percent in 2011. The attendance ratio has also risen from 30.2 percent in 2001 to 64.5 percent in 2010.

Goal Six: Combat HIV/AIDS, Malaria and Other Diseases

Ethiopia has achieved a greater decrease in disease prevalence than anticipated. In 2010, the prevalence of HIV/AIDS was an estimated 1.5 percent, lower than the Millennium Development Goal of 2.5 percent.

Goal Seven: Ensure Environmental Sustainability

With the Climate Resilient Green Economy strategy, Ethiopia has taken necessary steps towards integrating the principles of sustainable agricultural development. The SDPRP has aided the progress of governance and the transformation of society by improving the framework and provisions enabling environmental and private sector growth. It also focuses on agricultural research, water harvesting and small-scale irrigation.

Goals three and five of the Millennium Development Goals lack progress and are struggling to be realized. Entrenched traditional views of women in the nation are among the obstacles that these programs encounter. However, on the whole, the employment of these programs in Ethiopia has decreased the overall issue of poverty and have moved the country forward in terms of development.

– Lydia Lamm

Photo: Flickr

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The Effects of the Proposed Budgets for Global Health and Foreign Aid

Proposed Budgets for Global Health and Foreign Aid
After months of threatening to make serious cuts in the proposed budgets for global health and foreign aid, the Trump administration and Congress signed a budget deal on March 21, 2018 indicating increases to nearly all government-allocated scientific research agencies, many of which contribute to global health research. For instance, the National Institues of Health received a $3 billion increase in federal budget allocations, a reversal of the 22 percent reduction in the budget proposed by the White House earlier this year.

These developments fall in line with press releases published on the White House website. The White House explains that the Trump administration champions the Global Health Security Agenda (GHSA), funded by the Centers for Disease Control and Prevention (CDC), which helps to prevent the spread of diseases through increases in disease prevention provisions in countries prone to an outbreak.

President Trump himself has expressed that “the world cannot have prosperity unless it is healthy”. His administration’s reports detail the GHSA and clearly show the impact that this specific global health advancement has had on outbreaks of dengue fever in Burkina Faso, as well as the Marburg virus in Uganda.

This viewpoint on global health security and the recently approved 2018 budget contrast with the Trump administration’s 2019 proposed budgets for global health and foreign aid. The 2019 budget proposes 30 percent cuts to the Senate Foreign Affairs Budget as well as the Department of Health and Human Services.

While the recently approved 2018 budget increased the funding to agencies vital to public health, it is still important to understand the impact these proposed budgets for global health and foreign aid could have on agencies internally. Budget cuts to United States government institutions materialize in a slowdown of impactful research and operations that occur within the agency. Decreases in budgets inevitably reduce the number of grants that are approved and also limit the number of researchers institutions are allowed to hire.

The less money an agency receives, the fewer projects it is able to complete. As of right now, the deepest cut in the proposed budget for global health and foreign aid are to the State Department, with a primary focus on the United States Agency for International Development (USAID). Cuts to USAID will reduce the number of programs and limit the amount of personnel and projects carrying out USAID work.

As of right now, USAID is in a hiring freeze and only seeking out critical personal on an as-needed basis through specialized waivers. Despite this challenge, current USAID administrator Mark Green claims that the tightening of the USAID budget causes the agency to operate as efficiently as possible. Green explained that even with budget restrictions, he is working with the president to show how development is a necessary soft approach to national security and global health.

While some global health programs are proposed to receive equal or additional funding through presidential and Congressional support of the CDC’s GHSA program, USAID looks to remain under tight restrictions. Overall, advocates of global health and USAID will continue to emphasize the institution’s importance to foreign policy, but it is ultimately up to President Trump and Congress to approve the organization’s desired funding.

– Daniel Levy

Photo: Flickr

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How the US Benefits from Foreign Aid to Argentina

How the U.S. Benefits From Foreign Aid to Argentina
Aid to foreign countries is essential to help maintain stability and reduce poverty in countries that are struggling to achieve those goals on their own. However, foreign aid also benefits the United States: it increases national security, can expand the U.S. economy and help develop a relationship with a strategic ally.

Globally, each year the United States gives about $30 billion in foreign aid, a seemingly large number that actually amounts to only about 1 percent of the federal budget. Argentina is one recipient of money allotted in that budget, and there are numerous U.S. benefits from foreign aid to Argentina. In 2016, U.S. agencies gave $2.6 million in aid to Argentina, with half of the money coming from the Department of State.

According to the Department of State, U.S. foreign aid to Argentina works to increase stability and democracy, as well as increase support for non-proliferation and border security. Through aid and U.S. officials, the United States has established programs to train law enforcement and justice officials in Argentina. These programs increase Argentina’s ability to promote shared security interests, which is a benefit to the U.S.

The U.S. government is also working with Argentina to focus on peacekeeping and disaster preparedness. Further agreements between the countries are working to increase the shared knowledge between the U.S. and Argentina to improve security. These programs will enhance stability in Argentina and the broader region, and increase both travel security and border security in Argentina.

In addition to government aid, many United States corporations invest in Argentina’s businesses, making the U.S. the largest foreign investor in Argentina. These investments benefit the United States, as the U.S. is the second largest export destination for goods from Argentina. Argentina’s top exports include soybeans and corn, while top U.S. imports from Argentina include mineral fuel and oil, wine, food and aluminum. In the five years prior to 2016, exports of Argentina increased by more than 2 percent annually. The U.S. benefits from foreign aid to Argentina by importing a greater quantity of those goods.

On top of increased imports, U.S. corporations with business interests in Argentina employ more than 150,000 people across more than 500 companies. Both the United States and Argentina have goals of sustainable and balanced economic growth. To achieve those goals, the countries are working together through the help of U.S. investments and held the first meeting between the two governments on that topic in 2016.

Additionally, United States foreign aid to Argentina will help increase renewable energy technologies. Specific focuses are on changing and optimizing energy markets and integrating renewables into the existing power grid. Working to increase clean energy sources in Argentina will help achieve global goals of reducing harmful carbon emissions, a goal that is beneficial to all people regardless of national identity.

Cooperation between the U.S. and Argentina is vital in achieving global goals for the United States. The U.S. benefits from foreign aid to Argentina by maintaining a relationship that helps people of both countries and grows both economies, which leads to an overall more stable world.

– Hayley Herzog

Photo: Flickr

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One in Three People Are Going Hungry in the Dominican Republic

One in Three Going Hungry in the Dominican Republic
Close to one-third of the population in the Dominican Republic lives below the poverty line. With a thriving population of 10.65 million people, this means about 3.25 million are hungry in the Dominican Republic.

Nearly thirty years ago, the Dominican Republic was the fastest growing Latino economy in the world. And in the eyes of most tourists today, it still is. However, in 2003 the country succumbed to an economic crisis.

According to a report by the New York Times, Banco Intercontinental (Baninter Bank), Dominican Republic’s second-largest bank, collapsed due to greed and corruption, leaving the value of the peso almost null and void and the country’s economy in economic shock—2.2 billion dollars-worth of shock. In short, the government crumbled, prices skyrocketed and the countries dollar was almost worthless.

Years later, there has still been no recovery for the average worker. The bailout for the fallout went to the country’s wealthiest people, while the regular working class—thousands of citizens—were left jobless and hungry in the Dominican Republic. The country has failed to uplift fleeting growth sectors like mining, agriculture and education, which brings income to Dominicans of Haitian descent and Haitian immigrants.

To make matters worse, in 2013 the highest court in the Dominican Republic ruled to exclude citizenship to children of migrant Haitians who were born after 1929. This ruling forced thousands, including children, from the country and left others trapped in poverty in the Dominican Republic while they hope to one day become documented citizens again. Since that ruling, almost 300,000 Dominicans of Haitian descent have applied for citizenship. Few have become citizens.

According to a 2017 economic report on the Dominican Republic, the economy is rising and job sectors are slowing increasing because of tourism. But it still does not address a resolution to solving severe hunger in the country.

The biggest hurdle to helping the hungry in the Dominican Republic is overcoming the inequality of wealth distribution. The World Food Programme reported that while the Dominican Republic (DR) is one of the highest ranked upper-middle-income countries in the world, 40 percent of its people still live in poverty. By fairly distributing wealth to the urban areas of the DR, areas occupied by Dominicans of Haitian descent and Haitian migrants, the country could see a return from poverty.

The DR’s failing education system is another cause of poverty in the country. The country’s educations system does not rank well among those in other countries, mainly due to the absence of financial investment in its schools. Poverty affects the ability to learn. Adding a failing education system sets an additional snare, making it twice as difficult for poor people to escape poverty. Urban areas, in particular, have to endure substandard education.

All of this can change for the Dominican Republic. If the government continues to press for the quashing of economic inequality in the country and makes continual efforts to invest in education, this beautiful country can become more than just a tourist site.

– Naomi C. Kellogg

Photo: Flickr

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Update on Aid to the Rohingya

Aid to the Rohingya
At the border of Myanmar and Bangladesh, almost 700,000 people are living in makeshift refugee camps in a location called Cox’s Bazar. These people are Rohingya refugees who fled from Myanmar in late August due to targeted violence and persecution. Faced with such challenges, various agencies are providing aid to the Rohingya refugees.

The Rohingya are a Muslim population formerly located on the western coast of Myanmar. Myanmar is a majority Buddhist country and the Rohingya are among a small number of people who practice Islam. The minority group has endured prosecution for centuries, but a new wave of violence escalated in the summer of 2017 to levels never before witnessed in the country.

Primarily an issue of land rights, the tension between the Rohingya and the majority of Myanmar’s population has caused thousands of people to flee and cross the border into neighboring Bangladesh. After a treacherous journey across the river, refugees find themselves in a country without persecution but with no place to go.

The refugee camps are not a sustainable solution. Makeshift homes have been created out of primarily plastic and bamboo. Inadequate water and sanitation conditions persist as more and more people flee across the border. The refugees are stuck in limbo as Bangladesh does not have room for an additional 700,000 people and the prospect of going back to Myanmar is off the table for many of the refugees.

In the midst of all of this uncertainty and desperation, many international organizations are working to provide aid to the Rohingya.

Doctors Without Borders

One of the larger organizations providing aid to the Rohingya is Doctors Without Borders. The organization has been present in the camps since the beginning of the crisis in late August. At first, Doctors Without Borders focused on water, sanitation and emergency health care assistance. As the crisis continues to unfold, the organization has been adapting to the needs of the refugee community.

Mental health services have recently been offered as the trauma of the violence continues to haunt many of the Rohingya victims. Additionally, Doctors Without Borders is working with both other aid organizations and the Bengali government to address the crisis and how to proceed.

UNICEF

UNICEF is another organization working to improve camp conditions and provide aid to the Rohingya. The group is looking to move toward a more permanent solution for the refugee population. Mostly focused on proper shelter, adequate food and clean water, UNICEF also has plans to install water pumps in the future.

Another major project for UNICEF is providing vaccinations. In September, the organization set a goal to vaccinate at least 150,00 children against diseases like rubella, polio and measles.

Bracing for Rain

As spring approaches, the Rohingya refugees must brace for a new crisis. Monsoon season in Bangladesh brings the threat of floods and landslides. Cyclones are also a major threat to the area, with their primary season spanning March to June.

The U.N. is fervently working on prepping for the potential crisis. In February, U.N. agencies sent out engineering crews to clear blocked sewage canals that had the potential of overflowing during the monsoon season. Rice husks have also been distributed to refugees as an alternative to firewood.

U.N. agencies are working on relocating 100,000 refugees from the major camp at Cox’s Bazar. As monsoon season quickly approaches, all of the organizations working will need the support of the broader international community to lift up efforts to provide aid to the Rohingya.

– Sonja Flancher

Photo: Flickr

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Sanctioning Hunger in North Korea Worsens Quality of Life

hunger in North Korea

The amount of people suffering from hunger in North Korea has been on a steady incline since the 1990s. North Korea is home to about 25 million people and 10.5 million of these people are undernourished. While 70 percent of the population relies on food aid, the country’s military ambitions have invited harsh sanctions that severely hamper its people.

Roughly a quarter of North Korea’s GDP is funneled into helping Kim Jong-Un present a façade of power via nuclear weapons development. The continued missile launches have caused a lessening of support from charities and world leaders, making it even harder for North Koreans to find food.

Because of this, the vulnerable citizens of North Korea are desperately in need of aid. According to a United Nations report, “More predictable funding is urgently required to ensure the immediate needs of the most vulnerable are addressed.”

In November 2017, North Korea launched an intercontinental ballistic missile. The heightened tensions that resulted instigated the United Nations to respond with new sanctions on the regime’s energy supplies.

But while sanctions grip the country in an attempt to incentivize halting nuclear weapons development, the sanctions have also impacted hunger in North Korea. About 60,000 children are at risk of dying due to a lack of food, according to the United Nations Children’s Fund. On Tuesday, Jan. 30, 2018, UNICEF launched a $16.5 million emergency relief for North Korea.

President Donald Trump announced new sanctions against North Korea on Friday, Feb. 23, 2018, and called them “the strongest sanctions on Korea that we have ever put on a country.” The move puts pressure on North Korea’s shipping and trade.

Former Secretary of State Rex Tillerson said in January that the international sanctions are “really starting to hurt” North Korea and was confident it would lead the regime to negotiate. The sanctions, combined with drought, corruption and a decline in crop production, add to hunger in North Korea more than they prevent weapon development.

The poor farmers of North Korea have, in some instances, resorted to using human waste as fertilizer for their crops, according to the BBC. This practice leads to the contamination of food grown in the soil. Furthermore, in January, a soldier was shot as he defected from North Korea and attempted to run across the demilitarized zone. An autopsy revealed his severe undernourishment, as well as the presence of many parasites in his stomach.

Kim Jong-Un has leveraged the threat of nuclear weapons and military to attain the opportunity to sit down with the President of the United States. All the while, the North Korean people suffer starvation in exchange. Hunger in North Korea will only continue to worsen if other charitable organizations, such as UNICEF, are unable to provide assistance to the nation.

– Sam Bramlett

Photo: Flickr

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How the US Benefits From Foreign Aid to Cambodia

U.S. benefits from foreign aid to Cambodia
In light of recent political events and President Trump’s “America First” agenda, many politicians are considering cutting spending on U.S. foreign aid. However, there are a number of ways that the U.S. benefits from foreign aid to Cambodia, making foreign aid a wise investment. United States foreign aid to Cambodia is a very complex issue and must be treated as such.

The United States, by providing aid to foreign countries, fosters stability, revitalization and cooperation all over the world. Many countries compete to gain diplomatic and political influence around the globe through foreign aid spending. The U.S. benefits from foreign aid to Cambodia include fighting global warming and preventing the spread of diseases such as HIV/AIDS and malaria. Not only are these efforts morally good, they protect United States citizens from epidemics and disasters while stabilizing the economies and governmental relations of many countries around the globe.

Cambodia has been ravaged by wars, corruption and poverty in recent years. United States foreign aid has been effective at stabilizing the country, and since economic conditions have normalized, the United States has become the largest purchaser of Cambodian exports in the world. In 2017, the United States spent $88.52 million in Cambodia on foreign aid for health, education, economic growth, security, environmental protection and governance. Through the United States Agency for International Development (USAID), many improvements have been made in Cambodia through the disbursement of foreign aid.

The U.S. benefits from foreign aid to Cambodia have manifested in preventing the spread of diseases, reducing crime and fostering economic development. An example of a program run by USAID in Cambodia is the ASSIST Project, in which the United States provides funding and advisors from health-related professions, ensuring that business models and medical practices are effective.

USAID also funds other programs such as the Country Development Cooperation Strategy to utilize resources that provide education and resources for a more efficient democracy in Cambodia. By promoting a stable government, the U.S. benefits from foreign aid to Cambodia by reducing the risk of war or other conflicts that could involve the U.S. military or put American citizens in danger.

U.S. foreign aid also helps build schools for children to learn other languages, increase government involvement and promote human rights and civil liberties in Cambodia. Cambodians have also seen improvements in their health services, a reduction in preventable deaths and a rise in literacy rates as a result of U.S. foreign aid. Because of these improvements, Cambodians are better able to participate in the economy, which allows U.S.-Cambodian trade to continue to grow.

In conclusion, while foreign aid may seem like an unnecessary expense in modern times, it may be one of the most needed expenses our government has today. The people of Cambodia not only rely upon the United States for foreign aid, but reward the U.S. with cooperation and trade in return. For the people of Cambodia and many other countries around the world, U.S. foreign aid is an investment on which they depend on and one which the United States cannot afford to overlook.

– Dalton Westfall

Photo: Flickr

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The Ways That the US Benefits From Foreign Aid to Chad

Relations with the United States and Chad began in 1960 following its independence from France. Over the past few decades, Chad has emerged from a half-century of regional conflicts and internal turmoil to pursue better governance and development. The U.S. benefits from foreign aid to Chad by recognizing the significant steps the country has taken after decades of instability.

The United States and Chad

The U.S. has supported the Chadian government in committing to more regional stability and security, and promoting human rights and the rule of law. The U.S. government hopes to pursue these goals through the State Department, diplomatic engagement and multilateral, regional and bilateral assistance programs.

Today, over half of Chad’s population lives in poverty and has experienced decades of conflict and instability. Chadians face one of the highest rates of maternal mortality, high infant mortality and life expectancies of fewer than 50 years in the world. Many of Chadians are food-insecure, meaning they do not have consistent access to the food they need for basic nutrition.

To address these issues, USAID has partnered with the U.N. World Food Program to distribute food to those in need. Also, the organization aids in providing money to hungry families and aid farmers by getting the seeds they need to produce more food.

U.S. Benefits from Foreign Aid to Chad

According to the Office of the U.S. Trade Representative, the U.S. benefits from foreign aid to Chad by being its 95th largest goods trading partner with $931 million in total goods in 2016, and goods exported totaling $33 million. Chad was the United States’ 176th largest goods export, and top export categories included vehicles, machinery and electrical machinery.

U.S. total exports of agricultural products to Chad totaled $1 million, and Chad was the U.S.’s 78th largest supplier of goods imports in 2016; interestingly, U.S. goods imports from Chad totaled $899 million in 2016, down 31.1 percent from 2015. The U.S does not have an investment treaty or bilateral tax agreement with Chad, which is a partnership that could lead to better U.S. benefits from foreign aid to Chad in the future.

Uncertain Partnership

Recently, the Trump administration included Chad in Presidential Proclamation 9645 restricting travel from Chadians. The decision to include Chad in the “travel ban” occurred over the objections of the Pentagon and State Department.

Chad has been one of America’s more reliable counterterrorism allies in Africa. Chad has battled Islamic terrorists in the region, including offshoots of Al Qaeda and Boko Haram. Chad’s military has worked closely with Americans, playing host to exercises conducted by the United States.

Over the past decades, many top U.S military officials have talked about the importance of foreign aid and how it strengthens relations with countries around the world and national security. In 2011, senior Pentagon officials — including Secretary of Defense Robert Gates and the Director of the CIA — argued before Congress in halting proposed cuts to America’s foreign aid budget.

The U.S. benefits from foreign aid to Chad by having a reliable ally in Africa to fight terrorism in the region and a strong trade partner to increase both nations’ economies. It remains to be seen how relations between Chad and the United States continue, but whatever the outcome, peaceful conversations are always preferable.

– Zak Ott

Photo: Flickr

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How the US Benefits From Foreign Aid to Paraguay

How the US Benefits From Foreign Aid to Paraguay
With federal aid, the U.S. has the opportunity to advocate economic and social growth for other countries. This reputation has earned the trust and cooperation of many nations around the world, including Paraguay.

Located in South America, Paraguay is a nation with lush tropical forests and agricultural activity. Paraguay struggles more in comparison with other Latin American countries in several socioeconomic categories such as potable water and secondary school enrollment.

With the assistance of the U.S., Paraguay is progressing in reducing poverty and corruption. As a result of strong production and high global prices, Paraguay’s economy has grown at an average of four percent every year since 2014.

U.S. Assistance to Paraguay

The United States has supported Paraguay’s democracy and economic reform through foreign aid since 1861, just fifty years after Paraguay declared its independence from Spain. For the 2018 fiscal year, $400,000 of the $28 billion foreign aid budget was allocated to Paraguay, a large decrease from 2017’s allocation of $6 million.

In previous years, the money was budgeted for categories including Economic Development and Democracy and Human Rights and Governance; this year’s budget specifically targets Peace and Security.

The U.S. previously aided Paraguay in reducing corruption and creating jobs, and have stressed the significance of supporting groups such as women, indigenous peoples and youth. The aid is intended to strengthen Paraguay’s democracy and increase economic opportunities.

U.S. Benefits of Economic Progress

The U.S. invests aid into other countries to build their economic growth through aspects such as healthcare, education and infrastructure. Providing the opportunity for stability in impoverished countries strengthens the nation’s stability and contributes to ally and trade relations with the U.S.

Investing in other countries means investing in the U.S. Businesses that export goods to other countries account for one in every five American jobs. The U.S. benefits from foreign aid to Paraguay through providing economic benefits in exports and jobs; in fact, in 2015, U.S. exports of goods to Paraguay supported an estimated 7,000 jobs.

The U.S. has several investors in Paraguay as well, including computer, telecommunications and banking firms. About 75 U.S. businesses have employees working in Paraguay.

Trade

With $2.1 billion in goods traded in 2016, Paraguay is the U.S.’s 73rd largest goods trading parter. Also in 2016, the U.S. goods trade surplus with Paraguay experienced a 34.8 percent increase from the prior year of 2015.

The U.S. benefits from foreign aid to Paraguay through trade imports and exports. Exports to Paraguay in 2016 were $2 billion, which is a 30.7 percent increase from 2015 and a 117.4 percent increase from 2006.

Exports include a wide range of items such as cell phones, computer accessories and vehicle parts, but the largest export categories in 2016 were electrical machinery ($1 billion), machinery ($1 million) and chocolate and cocoa products ($965,000).

In 2016, U.S. goods imported from Paraguay was $57 million, a 170.1 percent increase since 2006. Top imports include sugar ($60 million), metal and stone ($23 million) and seeds and fruit ($15 million).

Foreign Relations

The U.S. benefits from foreign aid to Paraguay through strengthening foreign relations. The U.S. and Paraguay both are members of international organizations such as the United Nations, Organization of American States, World Bank and the World Trade Organization. The organization also partners with 100,000 Strong in the Americas, an organization that aims to increase the amount of U.S. students that study across the Western Hemisphere to 100,000.

The U.S. aims to improve countries around the world through foreign aid. Countries such as Paraguay have shown that the money provided to them has strengthened their socioeconomic and economic conditions, which in turn benefits the U.S. through economy, trade and relations.

– Anne-Marie Maher

Photo: Flickr