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Archive for category: Aid

Aid, Aid Effectiveness & Reform, Foreign Aid, Global Poverty

Foreign Aid Is Getting Better

Foreign Aid Is Getting BetterGovernment-funded aid and development programs do not benefit from the free market pressures generating growth and improved efficiency in the private sector. However, since the emergence of the international aid system following World War II, many countries’ philanthropic expenditures have become more transparent, sustainable and effective. This upward trend continues to this day; foreign aid is getting better, thanks to several improvements in their methods and philosophies.

Data Science

The first step in solving a problem is identifying it. This cliche is rarely more relevant than in the world of foreign aid, where economists and data scientists have spent years trying to measure, model and tailor solutions to the world’s most intractable problems. Good data are essential for development initiatives to establish baselines, set goals and targets, track progress and evaluate results.

Since the Marrakech Action Plan for Statistics was agreed to in 2004, more than 86 percent of International Development Association countries have completed or begun developing national strategies for gathering statistics. To carry this progress forward, organizations like the World Bank and the Committee on Data of the International Council for Science offer training on data practices to members of developing countries.

The science continues to improve. In 2014, Jesse Berns, a veteran of war and disaster zones, developed the Dharma Platform, an innovative new software designed for the rapid collection, sharing, and analysis of data in chaotic situations. Already adopted by Doctors Without Borders in 22 countries, Dharma is one example of how foreign aid is getting better.

Technology

The Dharma platform, made possible by the ubiquity of mobile phones, dovetails with another accelerator of foreign aid efficacy, technology. Recognizing the need to harness new technologies in order to meet the 2030 Sustainable Development Goals, in 2014, USAID established the U.S. Global Development Lab (USGDL) “to produce breakthrough development innovations by sourcing, testing and scaling proven solutions to reach hundreds of millions of people.” USGDL is comprised of scientists and experts from a range of private-sector partners and works with labs in universities across the country. Leadership has set ambitious goals, hoping to provide digitized agricultural data by mobile phone to 42 million small farmers in Africa within five years and standalone energy solutions to 40 million people.

While most of the impact of technological innovation occurs outside of the context of development assistance, the USGDL illustrates an essential way that foreign aid is getting better, by harnessing technology as an indispensable development tool. Since 2012, the program has expanded internet access to approximately 20 million new mobile and internet users around the globe, and directly supported USAID health and education programs by connecting 56 schools and 39 hospitals to the web.

Foreign Aid Is Getting Better by Shifting Its Approach

While improving the material lives of recipients is an essential goal of foreign aid, material donations have a limited to negative impact when they are misaligned with a country’s development needs. The Organization for Economic Co-operation and Development‘s Working Party on Aid Effectiveness recognized at the beginning of the 21st century that “promoting widespread and sustainable development was not only about amounts of aid given, but also about how aid was given.” Learning from the lessons of decades of misalignment and waste, foreign aid organizations are shifting away from dollars-and-cents inputs to an emphasis on self-sufficiency and building donor-recipient coordination.

Foreign aid is a young enterprise. Most of the organizations that come to mind with respect to foreign aid did not exist until the second half of the 20th century. While much progress has been made in improving foreign aid initiatives, from improving accountability to investing in sustainable, bottom-up solutions, foreign aid is getting better. Providing effective assistance to those in need is undeniably difficult, but it is getting easier. 

– Whiting Tennis

Photo: Flickr

March 10, 2018
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Aid, Education, Global Poverty

Maintaining Education in Tonga: Response to Cyclone Gita

 Education in TongaAfter Cyclone Gita devastated the islands of Tonga, more than 14,000 children may return to their education thanks to an efficient relief plan executed by UNICEF and several of its partner organizations.

UNICEF worked with the New Zealand Defense Force to provide aid for the victims of the cyclone, totaling about 25,000 students, according to a Tonga government assessment. A large portion of the aid was aimed at maintaining a level of education in Tonga after the cyclone’s path of destruction.

Relief came in the form of tents to serve as classrooms after an estimated 83 schools were damaged by the storm, according to Radio New Zealand. The two organizations also shipped supplies such as backpacks and the innovative school-in-a-box. The box includes pencils, scissors, paper, textbooks, chalk and a chalkboard, which is also used as the box’s lid.

In a podcast interview with ABC News, a UNICEF director explained the organization’s goal in Tonga by using temporary learning centers. “It will allow them to process what has happened while moving on with their lives as quickly as possible,” the UNICEF director said.

The cyclone, according to NewScientist, was the most powerful that Tonga has seen in more than 60 years, with winds reaching more than 142 mph. The damage to infrastructure did not end with schools, however. Nearly 1,400 homes were destroyed by Cyclone Gita, leaving many without shelter.

According to UNICEF Pacific on Twitter, the project also received assistance from the French Navy, who shipped some of the relief kits and helped progress education in Tonga.

While the government is still taking strides to improve infrastructure quality, the combined and coordinated effort of UNICEF and the New Zealand Defense Force successfully improved conditions for the affected children. Finding an efficient strategy to provide basic education, such as sending the school-in-a-box, allowed for high success rates in Tonga.

– Austin Stoltzfus

Photo: Flickr

March 9, 2018
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Aid, Foreign Aid, Global Poverty

How the US Benefits From Foreign Aid to Thailand

How the US Benefits From Foreign Aid to Thailand
The U.S. is Thailand’s third-largest bilateral trading partner, only behind Japan and China. In 2017, the United States imported $26.5 billion goods from Thailand, which was 11.2 percent of total Thailand exports.

The U.S. and Thailand have been trading partners since 1833, when the two nations signed a Treaty of Amity and Commerce and formed diplomatic relations. Recently, these two countries have discussed ways to expand trade and address outstanding issues. The stock of U.S. foreign direct investment (FDI) in Thailand reached $7.4 billion in 2003, which pushed the U.S. to become the largest foreign investor in Thailand that year.

U.S. Benefits from Foreign Aid to Thailand: Trade

The U.S. benefits from foreign aid to Thailand comes mainly in the form of trade, as the Eastern nation holds abundant natural resources. The major Thai exports to the United States are textiles, tin, integrated circuits, rubber, precious stones and sugar.

In 2004, the United States and Thailand made Free Trade Agreement (FTA) negotiations. This agreement eliminates issues related to tariff barrier and facilitates U.S. import and export, especially agricultural goods.

In addition, FTA protects U.S. investment as it can guarantee U.S. preferential status of investments under the U.S.-Thailand Treaty of Amity and Economic Relations (AER).

There were six negotiating rounds about the FTA from 2004 to 2006. These negotiations adjusted the FTA to maximize profits of both countries and strengthen the competition for U.S. import-competing industries such as textiles, apparel and light trucks. As a result of this effort, the pact solves numerous aspects of the issue of job losses prevalent in the U.S.

Fiscal Funding

In 2016, the U.S. ranked the top in all foreign aid with $30,765 million distributed by bilateral aid and international organizations, such as via organizations like the U.N. and the World Bank.

The U.S. planned to give Thailand $5.63 million; in the end, the nation invested around $12 million. This number increased to $7.17 million in 2017, and mainly focused on peace, security, education and social services.

USAID

The most vital foreign assistance of the U.S. in Thailand is the United Statement Agency for International Development (USAID), an organization that began in 1950. USAID trained Thais in various aspects of life such as agricultural productivity, health and family planning, science, technology, infrastructure development, human rights and governance, health and the environment.

Together, all of the USAID agencies spent $7 million in 2017 to further motivate Thailand’s development, and U.S. foreign aid and many U.S. companies brought Thailand from needing help to becoming self-sufficient, and an upper middle-income country.

“U.S. investments abroad help American businesses: by connecting them directly with new customers and suppliers,” Bill Gates wrote in his post on July 27, 2017. “America’s chief aid agency, USAID, uses its expertise to encourage private companies to collaborate on projects.”

A Prosperous Partnership

While Thailand gained numerous benefits from the FTA, the U.S. benefits from foreign aid to Thailand, too. Thailand’s average tariff on agricultural imports is around 39.9 percent, and the FTA largely trimmed U.S. expenses on tariffs in trading with Thailand, so the U.S. can access and acquire a substantial amount of much-needed Thai goods.

In April 2017, American and Thai leaders met under the U.S.-Thailand Trade and Investment Framework Agreement (TIFA) and, based on previous outstanding trade alliance outcomes, reaffirmed to expand trade and strengthen investment ties.

– Judy Lu

Photo: Flickr

March 6, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-06 01:30:502019-11-24 11:51:44How the US Benefits From Foreign Aid to Thailand
Aid, Foreign Aid, Global Poverty

How the US Benefits from Foreign Aid to Sudan

How the U.S. Benefits from Foreign Aid to SudanSudan, a country in North Africa, is one of the poorest countries in the world and has significantly relied on foreign aid over the years for its development. In fact, the country is still coping with challenges that are the consequences of political instability, economic shocks and recurrent environmental hazards, such as droughts and floods, which have resulted in 4.8 million people needing humanitarian assistance.

Many people still die from hunger and diseases, and there are nearly 2.1 million internally displaced persons (IDPs) in Darfur, 230,000 IDPs in the government-controlled parts of South Kordofan and the Blue Nile states, and 545,000 IDPs residing in locations that are not under government control. Due to this ongoing emergency situation in the country, it is not difficult to understand why the U.S. and other nations should give foreign aid to Sudan. However, in many ways, the U.S. benefits from foreign aid to Sudan as well.

History of U.S.-Sudan Relations

Diplomatic relations between the U.S. and Sudan can be traced back to 1956 after the latter had gained independence from joint administration by Egypt and the United Kingdom. However, the nations severed diplomatic ties a few times before the U.S. Embassy was finally reopened in 2002, and has been ever since. Sudan still faces several disputes that threaten its political stability.

For instance, Sudan and South Sudan still have unresolved disputes regarding border demarcation and the status of the Abyei region. Foreign aid to countries like Sudan not only covers basic necessities such as food and shelter, but can also help maintain peace through the promotion of effective reconciliations and investments in youth. As a powerful nation, the U.S. benefits from foreign aid to Sudan because providing assistance will contribute towards a healthy and peaceful Sudan, which, in the long run, also helps the U.S.

How Conflict in Sudan Can Affect the U.S.

Conflicts, even seemingly minor ones far away from the U.S., can nonetheless affect everyone everywhere. Minor disputes could escalate into global crises, resulting in terrorist acts all over the world. Acts of terrorism affect everyone and threaten world peace. Hence, as a superpower nation, the U.S. benefits from foreign aid to Sudan that can contribute to bringing peace to the country.

Additionally, the U.S. benefits from foreign aid to Sudan because, in one year, violence and conflict cost the global economy $13.6 trillion, which is equivalent to 13.3 percent of the gross world product and 11 times the amount spent on foreign direct investment.

Moreover, providing basic necessities to the most vulnerable people could also help avoid further conflict in the region, as numerous studies have found a link between poverty and acts of violence. Poverty and political instability can fuel acts of violence among vulnerable groups of people, who become desperate enough to take any measures in order to escape their conditions.

The Work Being Done to Promote U.S. Benefits from Foreign Aid to Sudan

USAID/OFDA is “addressing the acute and protracted needs of conflict-affected populations in Sudan by prioritizing integrated activities in health, nutrition and water, sanitation and hygiene.” Such continued assistance can be life-saving for many. It could also help keep people from turning to dangerous outlets like violence in order to meet basic necessities.

In short, U.S. benefits from foreign aid to Sudan because it promotes peace not only in Sudan but also in the U.S., since violence in one area can affect the entire world.

– Mehruba Chowdhury

Photo: Flickr

March 6, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-06 01:30:262024-05-29 22:39:37How the US Benefits from Foreign Aid to Sudan
Aid, Foreign Aid, Global Poverty

Top 10 Recipients of US Foreign Aid in 2018

Top 10 Recipients of U.S. Foreign Aid in 2018Despite comprising less than 1 percent of the United States’ federal budget, foreign aid still plays a major part in shaping the United States’ diplomatic and military positions around the world. Many U.S. citizens also have major misconceptions about the amount dedicated to foreign aid and the impact it has on economic growth and national security. This makes it important to look at the top 10 recipients of U.S. foreign aid in 2018 and examine its positive impact on the United States and the world.

  1. Iraq – $347.9 million
    One of the most notable recipients of U.S. foreign aid is Iraq. The conflict in Iraq has remained a major contributor to global instability for 15 years now, claiming the lives of thousands of American soldiers and hundreds of thousands of Iraqis. Thus, the United States plans to spend $347,860,000 in 2018 to help stabilize the region. Current plans involve economic assistance following the collapse of world oil prices (a major contributor to Iraq’s economy), the stabilization of territories recovered from the Islamic State, and support for a humanitarian response to the needs of displaced citizens. Foreign aid to Iraq is key to the United States’ success, as it strengthens national security and helps diminish the threat of terrorist organizations such as ISIL that thrive in unstable regions.
  2. Nigeria – $419.1 million
    The primary goal of the United States’ foreign assistance in Nigeria is the reduction of extreme poverty in the region. Aid in Nigeria also seeks to support the creation of a stable democratic system that engages citizen input and is less vulnerable to attacks by radical terrorist groups such as Boko Haram, which has devastated the northern region of the country through bombings and assassinations over the past several years. Better aid in Nigeria would promote a higher quality of life for local citizens, economically benefit the United States and stop the spread of radical terrorism.
  3. Zambia – $428.9 million
    In Zambia, the United States has pledged funding in order to lower extremely high rural poverty rates in the county, as well as create a mineral economy that offers more prosperity for its citizens. Aid will also go towards establishing sustainable agriculture and combating the spread of deadly diseases such as HIV, malaria and tuberculosis. Investing in Zambia is both humanitarian and helps develop new foreign markets for United States goods in the future.
  4. Uganda – $436.4 million
    Helping the government of Uganda establish sustainable economic development in its communities is key to the stabilization of East Africa as a whole. Uganda has been an ally of the United States, helping with regional threats to national security, and further aid benefits both countries immensely. Aid planned for 2018 will also support the ideals of a multi-party democratic system and will help fight the spread of deadly diseases that threaten to devastate local communities.
  5. Tanzania – $535.3 million
    Despite an increasingly flawed, but stable, multiparty governmental system, and a strong and growing economy, over a quarter of Tanzanians live below the poverty line. As one of the top recipients of U.S. foreign aid, Tanzania aims to address issues of poverty among the populace, and at the same time advance American interests by creating a strong economic ally in the region.
  6. Kenya – $639.4 million
    Despite a series of democratic reforms that have taken place throughout the past decade, Kenya’s political system still suffers from pervasive government corruption and ethnic feuds. Many farmers and citizens live in drought-prone areas, which could spell disaster for some communities in future years and worsen tensions in the country. Planned aid to Kenya this year will increase the ability of the public to hold officials accountable and foster development of drought-prone areas in order to protect people from climate disasters in the future.
  7. Afghanistan – $782.8 million
    Like Iraq, Afghanistan has been one of the least stable countries in the Middle East in the past decade. The presence of the Taliban and subsequent military invasion by the United States caused immense instability in the struggling country. Planned aid in 2018 aims to cement democratic conditions in the fragile new Afghani government and embolden security forces to fight Taliban insurgencies and the expansion of the Islamic State, while also creating self-reliant communities that are less susceptible to occupation and exploitation. Aid to Afghanistan is key to establishing a more stable Middle East and stopping the dangerous spread of radical terrorism.
  8. Jordan – $1 billion
    Due to its location next to war-torn Syria, Jordan is at the center of the current refugee humanitarian crisis, which makes strengthening economic development in the country essential. As one of the top recipients of U.S. foreign aid, Jordan is receiving help to cope with the massive influx of Syrian refugees fleeing the devastating Syrian civil war, as well as increase democratic accountability and gender equality within the Jordanian government.
  9. Egypt – $1.39 billion
    In providing aid to Egypt, one of the top recipients of U.S. foreign aid, the United States intends to improve food security and good governance in the country, while also strengthening its ability to fight extremist terrorism that threatens the country. Aid will also help to continue the healthy economic relationship between Egypt and the United States. Though most aid is dedicated to security and economic development, around $30 million is intended to promote health and education among Egyptian citizens.
  10. Israel – $3.1 billion
    As one of the only functioning democracies in the Middle East, the United States has long supported Israel’s development efforts. The clear majority of Israeli foreign aid goes towards the development of defense programs against regional threats that jeopardize both American and Israeli interests. The United States also hopes to open a pathway of diplomatic negotiations with Palestinians to develop a peaceful resolution to regional conflicts.

These examples demonstrate the varied uses of U.S. foreign aid, and the different methods in which it is used to benefit the country. Whether invested in unstable states to boost global economic development and prevent terrorism, used to promote humanitarianism and improve the global view of the United States, or delegated to defense programs and assistance that increase U.S. soft power and influence, foreign aid has been used to benefit United States interests throughout the globe. This shows that foreign aid is not just an altruistic option, but one beneficial to the U.S. and its citizens.

– Shane Summers

Photo: Flickr

March 6, 2018
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Aid, Foreign Aid, Global Poverty

How the US Benefits from Foreign Aid to Honduras

How the US Benefits from Foreign Aid to Honduras
Honduras lies within Central America as a part of a northern triangle with El Salvador and Guatemala, and this nation faces severe problems including crime, violence and poverty. Honduras has a long, and not always beneficial, relationship with the United States. However, there are many scenarios in which the U.S. benefits from foreign aid to Honduras.

History and Past Relationships

The United States has a looming presence over Latin America including Honduras. One of the most notable cases occurred during the Cold War when the United States intervened in a myriad of countries in the name of preserving democracy; Honduras was used as a stationing point by the U.S. in their missions against the Nicaraguan Sandinistas.

The people of Honduras haven’t always necessarily been fans of the United States and its government. The country is a former “banana republic” — its economy was based on the production and sale of bananas through foreign, particularly American, companies.

This arrangement ended up not favoring the Honduran people and poverty in many rural areas can be traced back to this relationship. However, it is still possible to see both Honduran and U.S. benefits from foreign aid to Honduras.

War on Drugs

Honduras has been a pivotal part of drug trafficking through Central America to the United States. Central America is used as a transit region — it transports drugs from countries in South America such as Bolivia and Columbia to Mexico where the drugs can be transported across the border into the United States. This exchange has caused crime and violence to run rampant in the region, and the murder rate in Honduras is the highest in the world at 92 murders per 100,000 citizens.

The United States has previously given aid to Honduras so that the country can combat drug trafficking and the consequences the activity brings.

The U.S. Department of Commerce dedicated $1.5 million in 2017 for a customs and border management program in Honduras. Providing aid for this purpose can not only limit drug-related violence but it will limit some of the transport of drugs into the United States.

Immigration into the United States

The violence and poverty in Honduras has significantly increased immigration rates from the country to the United States. Many citizens have had no choice but to leave, and any risk they may face on their journey is deemed better than the alternative. In 2014, thousands of unaccompanied minors were found trying to flee to the U.S. from the Central American countries of Guatemala, El Salvador and Honduras.

Providing foreign aid could dramatically change the lives of these vulnerable citizens who feel pushed towards immigration. Such outside aid can help to alleviate poverty and provide services like healthcare and public education.

The United States has provided more than three billion dollars in development assistance since 1961, but more can be done for the Honduran people. This investment will lower immigration rates in the long run from Honduras into the United States.

U.S. Benefits from Foreign Aid to Honduras

There are a number of scenarios in which the U.S. benefits from foreign aid to Honduras, but the only scenario in which we will actually see these benefits is the one in which we actually provide much-needed aid. Not only will the United States benefit from such an action but, possibly more importantly, the Honduran people will as well.

– Megan Burtis

Photo: Flickr

March 5, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-05 01:30:382024-05-29 22:39:38How the US Benefits from Foreign Aid to Honduras
Aid, Foreign Aid, Global Poverty

How the U.S. Benefits from Foreign Aid to Guatemala

24. U.S. Benefits from Foreign Aid to GuatemalaGuatemala sits at the neck of the Central American landmass; it connects Mexico and North America to El Salvador, Honduras and South America. As a connector between continents, it is a cornerstone government in international politics. There are many ways that Guatemala benefits from foreign aid, and there are plenty of ways the U.S. benefits from foreign aid to Guatemala.

According to the U.S. Department of State, assistance from the U.S. to Guatemala is focused mainly on:

  1. Anti-corruption and anti-trafficking policy
  2. Human rights defense
  3. Free-trade agreements

One main interest in Guatemala is building a strong anti-illegal immigration task force in the region due to a rising number of illegal immigrants from Guatemala to the U.S. In return, Guatemala offers many imports and exports, as well as political support and free trade agreements between the two countries and other international organizations.

Recently, the U.S. benefits from foreign aid to Guatemala through the country’s support in political spheres to make social statements. The cooperation reflects Guatemala’s reliance on U.S. aid. In a Dec. 25, 2017 article, CNN reported that Guatemala was moving its embassy in Israel to Jerusalem. The change implied that they, as well as the U.S., recognize Israel and not Palestine as the nation which rightfully inhabits the land. 

By deciding to move the embassy, the U.S. and Guatemala went against U.N. protocol regarding the situation. The U.N. later decided in a 128-9 vote to approve a resolution calling on other countries to avoid moving their embassies to Jerusalem. By siding together, Guatemala and the U.S. showed a strong mutual support.

On Guatemala’s side, offering a united front in support of the U.S. not only secures their relations with the U.S., and therefore their trade agreements and aid agreements, but it also helps Guatemala look like a dominant political figure. The U.S. and Guatemala both benefit from foreign aid, but the U.S. benefits from foreign aid to Guatemala in many political and social spheres.

– Molly Atchison

Photo: Flickr

March 4, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-04 07:30:452024-12-13 17:58:38How the U.S. Benefits from Foreign Aid to Guatemala
Aid, Foreign Aid, Global Poverty

The Ways the US Benefits from Foreign Aid to Panama

How the US Benefits from Foreign Aid to Panama
Panama is the dividing landmass between two major water sources, the Atlantic Ocean and the Pacific Ocean. A small sliver of a country, Panama is only 115 miles at its widest; such a small country should not by any means be an influencer in international affairs, but with the building of the Panama canal by the United States in 1914, Panama became perhaps the most prolific trading country in the world. As a result, the U.S. benefits from foreign aid to Panama in many ways, especially in access to trade and finances.

Fruitful Waters

According a National Geographic article, nearly 14,000 ships pass through the canal a year. Due to the length of time it takes to move through the canal (approximately eight to ten hours), the canal is a difficult route to navigate, but is crucial to increasing the speed with which shipping companies transfer goods between companies. Panama and the U.S. have had a friendly relationship since the conception of the canal, and it has continued into trading deals.

Location, Location, Location

The U.S. Department of State describes the ways the U.S. benefits from foreign aid to Panama incredibly simply: “Panama’s location and role in global trade makes its success vital to U.S. prosperity and national security.” However, it also notes that the Panama Canal is a hub for traffickers and illegal activity as well. Due to this, the U.S. greatly assists in Panama’s anti-corruption and anti-trafficking policy building and free-trade agreements in the area.

Police Presence

One main interest in Panama is building a strong police presence in the region, due to the amount of cargo coming and going through the canal’s system. The more the U.S. and Panama regulate the canal, the less opportunity traffickers have to transport illegal goods to other countries.

Trading and Transportation

Similarly, the U.S. is incredibly invested in the trading and transportation policies around the canal, because not only is the U.S. one of the biggest investors in the canal, but it is also one of its main users. The Canal’s official website offers a graphic which shows all of the major import/export trade routed through the Panama Canal, and each route begins or ends in the U.S. So not only does Panama benefit from the finances and security the U.S. provides, but the U.S. benefits from foreign aid to Panama by ensuring access to a major trading route that greatly benefits the U.S.

Mutual Benefits

The U.S. benefits from foreign aid to Panama through mutually assured success of U.S. involvement in trade routes and Panama’s maintenance of a secure canal system. As long as the U.S. continues to support anti-trafficking efforts in Panama and help the nation monetarily, it is almost impossible for the U.S. to lose this benefactory system.

– Molly Atchison

Photo: Flickr

March 3, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-03 01:30:182024-05-29 22:39:39The Ways the US Benefits from Foreign Aid to Panama
Aid, Foreign Aid

How the US Benefits From Foreign Aid to Iraq

How the U.S. Benefits From Foreign Aid to Iraq
Iraq is located in a volatile region, with war-torn Syria to its west, daily military incursions by Turkish warplanes from the north and covert funding of proxy militias from eastern neighbor Iran. It has undergone dramatic changes in its modern history, most notably the removal of dictator Saddam Hussein by U.S.-led forces in 2003 and the recent crackdown against the Islamic State. The prolonged state of civil war has devastated Iraqi infrastructure.

In a recent conference held in Kuwait, international donors pledged $30 billion, which falls short of the $88 billion required by the Iraqi government. U.S. Secretary of State Rex Tillerson stressed that “the war on terrorism can be affected by instability in the Gulf.” The current Iraqi regime walks a fine line of stability, brokering a power-sharing deal among its population. The U.S. benefits from foreign aid to Iraq are momentous, but wholly dependent on a stable and united Iraq.

Stability of the U.S. Dollar

Although the U.S. imports most of its oil from Canada and Latin America, its economic interest is still affected by activities in the Middle East. The U.S. dollar is not backed by gold, meaning that it lacks intrinsic value. However, if European or Asian nations purchase oil from Middle Eastern nations, the only acceptable currency is the U.S. dollar. The constant demand for the U.S. dollar ensures its status as the global reserve currency. Thus, its value largely comes from oil.

Likewise, the U.S. dollar is viewed by oil-rich nations like Iraq, Kuwait and Saudi Arabia as being reliable and accepted everywhere. The current Iraqi government, which accepts U.S. dollars, has safeguarded the continuance of petrodollars; this is one of the many U.S. benefits from foreign aid to Iraq.

The Security of NATO

A stable Iraq is one of many U.S. benefits from foreign aid to Iraq. The prospect of Iraq breaking up into ethno-religious microstates has kept Turkey, a NATO ally, on edge. Turkish forces have been battling armed Kurdish groups for decades, such as the Kurdistan Workers’ Party, which has been designated as a terrorist organization by the U.S. and the EU. Washington, Ankara and Baghdad have reached an agreement to establish safe zones along their borders. This is to ensure the protection and accommodation of civilians who have been displaced by armed conflicts.

Profitable Contracts for American Oil Companies

Opening up Iraqi oil to the international market requires international investors building the necessary plants and infrastructure to drill and extract oil. The Iraqi government granted licenses to American-owned multinational oil companies to explore and extract Iraqi oil, including BP, ExxonMobil and Shell. These three companies employ a combined total of 200,000 Americans.

A Reliable Ally Representing Both the Sunni and Shia Sects

Iraq is unique when it comes to its demographics, as it is populated by Shia Arabs, Sunni Arabs and Kurds. The Iraqi forces have proven to be an effective fighting force against the Islamic State. Backed by U.S. air cover, its ground forces have recaptured major cities from the militants. This denied the militants any safe haven to roam freely and plot attacks against the U.S. and its allies next door, such as Jordan, Turkey, Kuwait and Saudi Arabia.

The exercise of soft powers, such as when the Trump administration removed Iraq from the controversial travel ban, has improved the image of the U.S. among Iraq’s population. Friendly relations between Washington and Iraq’s diverse population encouraged moderate voices in the region to voice their pro-U.S. stance as a result of foreign aid to Iraq from the United States. Continued support will ensure that the U.S benefits from foreign aid to Iraq by maintaining an important ally in a key region of the world.

– Awad Bin-Jawed

Photo: Flickr

March 3, 2018
https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg 0 0 Borgen Project https://borgenproject.org/wp-content/uploads/borgen-project-logo.svg Borgen Project2018-03-03 01:30:012024-05-29 22:39:37How the US Benefits From Foreign Aid to Iraq
Aid, Foreign Aid, Global Poverty

How the US Benefits from Foreign Aid to Ghana

How the U.S. Benefits from Foreign Aid to GhanaAccording to Tamela Noboa of the Baltimore Sun, foreign aid makes up less than 1 percent of the U.S. budget. As with many countries around the world, the U.S. benefits from foreign aid to Ghana, and these benefits could be multiplied if the U.S. contributes more to its foreign aid budget.

The U.S. always had an unofficial relationship with Ghana in supporting refinements of its power sector, strengthening healthcare and expanding access to education. Ghana possesses a level of dependency upon assistance given to it by the U.S., a dependence by which a cut in foreign aid could further hinder the country’s development. Since foreign assistance makes up such a minimal amount of the U.S. budget, increasing the amount of foreign aid would advance both countries.

The U.S. benefits from foreign aid to Ghana in these ways:

  1. Epidemics such as Ebola can be minimized and contained away from U.S. borders. According to David Ofori-Adjedi and Kwadwo Koram in an article for the Ghana Medical Journal, the possibility of the Ebola virus appearing in Ghana was high, due to the continuous presence of the virus in Guinea, Sierra Leone and Liberia in 2014. The likelihood of Ebola spreading in Ghana stems from its ability to manage an outbreak if it arises. As Bill Gates pointed out in an op-ed for Time, using foreign aid to ensure that countries such as Ghana are prepared to address an outbreak can keep it from spreading globally.
  2. The U.S. Embassy in Ghana believes that foreign aid contributes to strengthening cultural relationships for stable networking. For instance, foreign aid reinforces markets for U.S. products, opening up possibilities for future partnerships.
  3. Continuing foreign aid distribution to countries like Ghana contributes to sustainable change that aims to improve countries on a systemic level, allowing the country to further develop and eventually lessen its need for foreign aid.
  4. Investing in foreign countries creates the opportunity for nations like Ghana to invest back in the U.S., creating jobs across the country.

According to the U.S. Department of State, Ghana is currently facing a $1.5 billion shortfall in its funding for infrastructure projects. Continued support of these needs through foreign aid can ensure that the U.S. benefits from foreign aid to Ghana by helping the country reach its potential and become a bigger participant in the global economy.

– Christopher Shipman

Photo: Flickr

March 2, 2018
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