Information and stories on development news.

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USAID: Initiating Smart Investments in Kenya

In January of this year, USAID announced a new poverty reduction initiative in Kenya. In partnership with Kenya Commercial Bank (KCB) and General Electric (GE), USAID promotes investments in Kenya between the KCB and medical institutions that need financial assistance to offer appropriate medical care.

To provide this assistance, banks will grant loans to hospitals and other health centers. These investments in Kenya would have previously been considered unsafe and unlikely to be returned, but under the agreement with USAID, they are guaranteed reimbursement. If a full return cannot be made, USAID will pay back 50 percent of the loan.

The KCB, according to the deal, is obliged to divvy $1 million for medical equipment like MRIs, incubators and other standard-increasing machinery to be used in local health centers. GE has left $660,000 dollars for USAID to use as potential reimbursement funds, though only $500,000 (50 percent) should be used. In return, the Kenyan health services will purchase GE equipment, expanding GE’s global market.

There are some, however, such as Monica Onyango of Boston University, who are afraid this may lead to an overstated importance of imported goods, when in fact, locally manufactured equipment is better for local economic development.

Michael Metzler, director of Development Credit Authority (which is the tool used by USAID to promote loans, as in the initiative in Kenya,) reassures skeptics like Onyango that local business and manufacturing will still have the power Kenya needs it to have to grow. Quoted recently in a Global Post article, Metzler said that “we’d be very sensitive to a deal in which that was the case.”

Aside from the deal’s economic influence, clearer effects of the enhanced medical treatment new loans insure will be seen in public health. This expedites poverty reduction in Kenya by reducing the number of deaths caused by preventable diseases thriving in impoverished communities. These include diseases such as HIV, diarrhea, tuberculosis and malaria.

Illness and poverty go hand in hand, and until one is dealt with, the other is likely to expand. This new USAID initiative incorporates this idea and acts accordingly.

— Adam Kaminski

Sources: Health Poverty Action, Global Post, Federal News Radio
Photo: USAID

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The Millennium Challenge Corporation


1. It’s a breath of fresh air

Ever since the Millennium Challenge Corporation’s (MCC) creation in 2004, it has been drastically different from other United States foreign aid programs. According to the Congressional Research Reserve, it places emphasis on “free market economic and democratic principles and policies, where governments are committed to implementing reform measures in order to achieve such goals.” Basically, it favors long-term economic development over short-term aid and calls upon poverty-stricken countries to design and apply remedial projects. This is in stark contrast to U.S. foreign aid policies pre-MCC.

2. Fastidious selection process

Although withholding aid from a deserving country sounds ignoble, it’s a necessary step for the MCC to ensure its efficacy. Before awarding grants, the MCC scrutinizes potentially eligible countries, checking for stable government, transparency and a general “sound track record.” An impoverished but corrupt country cannot receive aid.

3. Enabling (never prescribing)

The MCC does not decide what “aid” looks like. Rather, it funds problem-solving initiatives led by the impoverished countries themselves. This empowers the people who best understand the critical issues, meanwhile inspiring local innovators and inventors. If prescriptions are tawdry and shortsighted, MCC is authentic and enabling.

4. Enabling (never controlling)

Selected countries not only design the economic growth initiatives, but they implement them as well. The MCC works closely with these countries to support and refine tactics, but it is the responsibility of the selectee to drive the bus. While impoverished countries steer and navigate, MCC fuels.

5. Partner accountability 

One technique the MCC uses to motivate its partner countries is a five-year deadline. By the fifth year of funding, the problem-solving projects will have been completed and their successes will have been gauged. This keeps selected countries accountable.

6. Self-accountability 

The MCC works hard to remain as accountable and as transparent as they expect their partners to be. It tracks its achievements and evaluates its impact scrupulously. Successes can then be duplicated, and shortcomings can be fixed.

7. Big achievements

The Millennium Challenge Corporation gives two types of awards: Compacts (five-year grants) and Threshold Programs (smaller grants.) Since its creation in 2004, MCC has, in total, awarded $8.4 billion to initiate and support poverty-reduction projects. Over 38 impoverished countries, from Albania to Zambia, have received grants.

8. It’s only growing

In March of this year, the fiscal year 2015 State Foreign Operations budget request, was released. According to this issue it will provide the MCC with $1 billion. This is 11 percent more funding than it received over the 2014 fiscal year.

— Adam Kaminski

Sources: FAS, MCC, USA
Photo: Asbarez.com

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Solving the Cambodian Toilet Crisis

A Southeast Asian organization has used simple economics to create an effective solution to the Cambodian toilet crisis.

The Ministry of Rural Development reports that 61.4 percent of rural Cambodian households lack toilets. Open defecation has been proven to cause diarrhea, malnutrition, stunted growth and negative impacts on a child’s cognitive development.

However, according to a water and sanitation report published by The World Bank, more than half of the Cambodian households that lack a latrine could, in actuality, afford one. With current awareness and subsidy campaigns, latrine coverage has been increasing by only 1.3 percent per year, which means it could take more than 60 years for Cambodia to be “Open Defecation Free.”

WaterSHED is a Phnom Penh-based organization, founded in 2010. This humanitarian team works on water and sanitation marketing in Southeast Asia. The founders of this agency discovered that building toilets in Cambodia was outlandishly expensive. The price to build and assemble a toilet was between $250 and $400, but with Cambodia’s GDP per capita at around $950, having a toilet has been traditionally reserved for the wealthy.

Using a supply and demand framework, WaterSHED toilet suppliers lower their prices, increase their volume and offer a complete package including toilet installation for only $45. Families can pay for these latrines with microfinance loans targeted only at the very poor.

With this new method WaterSHED has reported the sale of 75,000 toilets in 59 of Cambodia’s 171 districts. This rate of toilet installation increases the annual coverage rate up to 7 percent.

The impact of WaterSHED’s advocacy has seen visible results. IRIN, a humanitarian news agency affiliated with the U.N., interviewed citizens in the Kompong Speu Province. In this village of 160 families, around 100 have recently installed a new toilet. The families have already seen the health benefits of their new latrines, including less frequent fever and diarrhea.

The World Bank argues that making the elimination of open defecation a top priority for policy makers in Cambodia is crucial to the productivity of the next generation. With innovative programs like those implemented by WaterSHED, the future looks brighter for the youth of Cambodia.

— Grace Flaherty

Sources: IRIN News, World Bank
Photo: Flickr

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TaiwanICDF Provides Clean Water

April 11 marked the official opening ceremony commemorating the completion of a new, groundbreaking water supply system made possible by the Haitian government, the Red Cross Society of the Republic of China and the International Cooperation and Development Fund of Taiwan (TaiwanICDF.) The new water system will reportedly supply safe and clean domestic water for over 90 percent of the area’s inhabitants.

In January 2010 a magnitude seven earthquake devastated Haiti and rendered about 1 million Haitians homeless, a number of which relocated from its capital, Port-au-Prince, to New Hope Village in Savane Diane. As a result, the need for accessible and clean water  increased exponentially, and the new system accommodates this need and serves as a sustainable, long-term solution. TaiwanICDF reportedly showed residents how to maintain and fix the system in the event that it breaks down.

The Taiwanese ambassador to Haiti, Peter Hwang, attended this special celebration, as did TaiwanICDF’s Secretary General, Tao Wen-lung. Wen-lung said the system would provide enough water not only for over 200 homes, but additionally for the village’s health facility, school and nearby agricultural irrigation needs. He described it as “a real godsend for local residents.”

In a video on the TaiwanICDF website, a local resident describes the arduous three-hour process he formerly endured to transfer water from a far-away source back to his home. Now, he has a quick and easy water source practically in his backyard. In the video, the resident also thanks TaiwanICDF for their instrumental role in developing and maintaining the system in his village.

China and Taiwan are hosts to numerous humanitarian organizations. TaiwanICDF is particularly focused on infrastructural and economic development for long-term stability in needy nations and regions, as well as technical cooperation, humanitarian assistance and international education and training. This type of maintainable, long-term investment in developing nations has provided a model by which helpful contributions in such countries can make significant long-term differences.

– Arielle Swett

Sources: ICDF, Taipei Times
Photo: Taiwan Today

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Big Cuts in Education Aid for India

The recently released 2013/14 UNESCO Education For All Global Monitoring Report has some unfortunate statistics. The report estimates that global education is underfunded by $26 billion. In 2011, 69 million adolescents and 57 million children were out of school. Adult literacy has barely improved by increasing only 1 percent since 2000.

The report stresses that investing in quality teachers is key as around 250 million children are not being taught basic education despite having been in school for an average of four years. The biggest shock was that international funding for global education is down almost 10 percent since 2010.

India will see the most significant decrease in aid. Education aid for India fell by $278 million between 2010-2012. This is a serious problem as India relies on this aid to continue developing its education system. It is one of the top five countries with the most children out of school.

There are many statistics that show why aid is essential for India’s educational development. In the poorest state of Jharkhand there is a 42 percent absentee rate. A study showed that only 33 percent of Indian children between the ages of 14 and 15 could properly answer a two stage math problem that used multiplication and addition. Only 50 percent of children in India are learning basic education.

Positive results from aid can also be used to stress its importance. The report gives dozens of examples of how and why education is key to helping the poorest in Indian society. For example, “women in India with at least secondary education were 30 percentage points more likely to have a say over their choice of spouse than their less educated peers.” There was also a study on the use of technology in four schools in the Uttar Pradesh region. Students were able to listen to a lecture from an expert teacher via digital video recordings. Around 72 percent of the students had increased test scores after eight months.

There is no question that aid for basic education is essential to developing countries as well as the general well being of the world. The Board Chair for the Global Partnership for Education Julia Gillard said that, “education is a long-term investment – not an expense. We owe it to the children of the world – particularly the poorest and most marginalized – that both international donors and developing country governments step up and commit more funding to education.”

The news of decreased funding in India coupled with the not so spectacular statistics in the EFA report show that more needs to be done to support global education. To take a step back and decrease aid is moving the world in the wrong direction.

– Eleni Lentz-Marino

Sources: UNESCO 1, UNESCO 2, DNA India, PakTribute
Photo: Tauheedul Relief

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PYXERA Global Fights World Challenges

Formerly CDC Development Solutions, PYXERA Global seeks to engage the public, private and social sectors in partnerships that can utilize each sector’s strength to face global challenges.

Although not officially named PYXERA Global until 2013, the organization was founded in 1990 as Citizen Democracy Corps to help the former states of the Soviet Union become strong and free societies following the collapse of communism. Since then, multiple programs to help eliminate challenges worldwide have been created within the organization, such as the Corporate Assistance Program, the Citizens Volunteer Program, the MBA Enterprise Corps and MBAs Without Borders.

The name PYXERA Global is meant to embody the work that the organization does: pyxis means navigator while terra means ground.

PYXERA Global has helped facilitate programs such as IBM’s International Corporate Volunteerism, the Corporate Service Corps, the Dow Chemical Company’s Sustainability Corps and the Richard T. Clark Fellowships for the World Health Program.

PYXERA Global also has two sub-sections: Global Pro Bono and Enterprise and Community Development. On the PYXERA Global website, Global Pro Bono is described as “leverag[ing] the professional expertise of talented individuals as a win-win approach that builds capacity at the local level while meeting the strategic goals of our corporate partners.”

The programs encompassed in Global Pro Bono include International Corporate Volunteerism and MBAs Without Borders. According to the website, Enterprise and Community Development Programs include “bring[ing] together diverse partners and leverag[ing] their abilities, interests, and resources to achieve sustainable development outcomes by enhancing the inherent capabilities of local communities.” Enterprise and Community Development Programs include Integrated Community Development programs and Local Content Development.

In addition, PYXERA Global also has the U.S. Center for Citizen Diplomacy, which helps people form bonds despite their geographical distance or cultural backgrounds.

By helping unite resources around the world, PYXERA Global seeks to continue their 14-year tradition of eliminating global challenges.

– Lily Tyson

Sources: New Global Citizen, PYXERA, 3BL Media
Photo: ICV Online

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10 Ways to Make Every Foreign Aid Dollar Count

Foreign Aid Dollar
Public opinion about U.S. foreign assistance has remained unchanged for many decades. It is still not unusual for people to choose foreign aid when it comes to deciding where to cut funding to reduce the national deficit.

For decades, pollsters continue to show us how most people think that foreign aid accounts for over 20 percent of the federal budget. In fact, foreign aid accounts for only 1 percent of the federal budget. What is more, of that 1 percent, only half is dedicated to helping the world’s poor.

Despite the limited amount of foreign aid, and the fact that it is always in danger of being cut further, there are several ways in which we can make our foreign aid dollars count. Here are 10 ways to make every foreign aid dollar count; some of which are already being put in practice.

1. Engage recipients of foreign aid as part of the solution.

Instead of treating people in foreign countries as “passive recipients” of money and food, it has been demonstrated that it is much more productive to include them in the process of formulating and implementing poverty reduction initiatives.

2. Transfer some of the responsibilities to local authorities.

Following up with the previous point, another way of engaging with aid recipients is to delegate some of the work to local authorities. Involving local authorities in the design and implementation of aid policies promises to create better results.

3. Use technological advances to improve data management.

Putting to work the many tools available is crucial for gathering data and monitoring the achievements of each aid program. For instance, the State Department launched a website called “dashboard” where all foreign aid programs can be monitored.

4. Create new partnerships and strengthen existing ones with private businesses.

Partnering with businesses and nonprofit organizations provides additional funding sources that helps leverage the small amount dedicated to foreign assistance by the federal government.

5. No private without public.

At the same time, it is imperative not to deviate too much from public funding sources. In the last decade there has been a growing notion that private organizations can gather enough funding for foreign aid. However, according to Paul Farmer, no intervention can be brought to a scale large enough to make a difference without some input from the state.

6. Do independent scientific research.

This is another tool to determine what really works and what does not. More importantly, it is a means to disaggregate politically motivated foreign programs from the ones that would create a real impact on poverty alleviation.

7. Centralize data for better monitoring of aid programs.

Creating an integral database for foreign aid helps identify redundant programs, eliminating waste. In addition, it is an effective way to determine goal-based foreign assistance and monitor the achievements accordingly.

8. Move away from one-size-fits all policies.

In countries with relatively stable governments, it makes sense to implement programs that rely on “country ownership” and more “participatory processes.” However, this might not be possible in countries with governance and corruption issues.

9. Tie aid to goals with measurable results.

This way both donors and recipients can be held more accountable for specific achievements. This will require moving away from generalized goals toward specifying the particular quality and scope for each program.

10. Reassess the way in which foreign aid is allocated based on risk factors.

This last point speaks directly to reassessing expectation. It is important to be realistic when it comes to foreign assistance. Under the best circumstances, there are still many factors that can hinder the progress made in poverty reduction programs. However, studying the risk involved in each case specifically can be a way to improve the chances of success.

There is no single answer to development and poverty alleviation. Foreign aid can be a lengthy and risky business. But using the tools at our disposal and learning from past experience is still a good way to achieve a growing number of successes.

– Sahar Abi Hassan

Sources: Politix, Foreign Affairs
Photo: The Economist

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Effects of India’s Poor Sanitation

Poor sanitation can sometimes be the initial domino that starts a cascading wave of other problems. In the case of India, poor sanitation and open defecation have allowed for an overwhelmingly unhygienic environment and a variety of widespread health problems.

In India, there are more people who openly defecate on a regular basis than live in the entirety of Africa. Out of the 1.2 billion inhabitants, 103 million lack safe drinking water and 802 million lack any sanitation services.

For starters, combining an unhygienic environment with a high population density creates a breeding ground for preventable disease epidemics. Two common hygiene-related diseases, typhoid and diarrhea, prevent their victims from absorbing necessary nutrients which leads to malnutrition. India has higher rates of malnutrition in children than Sub-Saharan Africa.

The effect of having proper hygienic practices is shown when comparing the states within India. States where 80 percent or more of the rural population can access toilets have much lower levels of childhood malnutrition than cities where open defecation is commonly practiced.

Not only are there health consequences to open defecation, but social safety consequences as well. When women and children have to relieve themselves, they are forced to venture into the streets rather than using a toilet in the safety of their own home, which compromises their safety. A senior police officer in Bihar stated that about 400 women would have avoided rape last year if they had toilets in their homes.

The root of the problem is the lack of available or accessible toilets to the general population. Unfortunately, use of the toilets found in developed countries would be impractical and nearly impossible to achieve in India. A waste disposal system would need to be put into place, and toilets like these require large amounts of water, which is rarely consistent in developing countries.

While India is not known for being wealthy, the country ranks fourth in the world for manufacturing competitiveness. With many citizens capable of designing and manufacturing innovative solutions, the possibility of a low-cost toilet is promising.

One type of toilet that could potentially work well with India is the composting toilet, which is a toilet that is used for about a year, and subsequently sealed for 6-9 months, where the heat and decomposition of the feces kills off harmful bacteria and creates rich fertilizer that can be used in gardens.

While India’s poor sanitation has deep-rooted negative effects, the country has the innovative capacity to find an efficient and widespread solution.

– Courtney Prentice

 

Sources: Live Mint and The Wall Street Journal, British Broadcasting Corporation, The Child Fund, Water
Photo: OMICK

 

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Progress In Youth Malnutrition in Vietnam

In the past two decades, Vietnam has made incredible progress. Not long ago, it was considered a developing country; however, since the introduction of the Doi Moi reforms of 1986, Vietnamese per capita income has increased from $100 to $1,130 (USD) in 2010. The population rate of poverty decreased from 58 percent in 1993 to a much smaller 14.5 percent as of 2008, a figure that continues to diminish yearly. Vietnam‘s economy has progressed impressively. With the embrace of free market reforms and an influx of foreign development and investment, its private sector has enjoyed immense job growth. The nation swiftly achieved half of its 10 United Nations Millennium Development Goals (MDGs) and will likely reach an additional two MDGs within the next year. It is clear to the international arena that Vietnam is well on its way to both modernization and economic prowess. According to UNICEF, Vietnam’s MDG of focus was one aiming to eliminate food poverty. Efforts to achieve this goal meant food poverty rate decreased by over 66 percent — going from 25 percent in 1993 to just 6.9 percent as of 2008. To put this statistic in a perspective, about 15 percent of the U.S. population exhibited food poverty in 2012. Despite these encouraging improvements, malnutrition in Vietnam remains a serious concern. The country’s large child population — numbering approximately 26 million — still suffers disproportionately from malnutrition. Currently, one-third of all children in Vietnam under 5 years of age experience stunted growth resulting from chronic malnutrition. Additionally, 20 percent of this young population is regarded as malnourished and under healthy weight baselines. As the country continues swiftly on its progressive trajectory, steps must be taken to combat these statistics and lower the high incidence of child malnutrition. As the nation’s economy is heavily based in agriculture, it exports huge amounts of produce. Some argue that portions of this surplus could be easily directed toward child malnutrition, resulting in a significantly healthier and happier population. As the Doi Moi continue into the next few years, hopefully this MDG will be reached. – Arielle Swett Sources: Feeding America, World Bank, UNICEF 1, UNICEF 2 Photo: UNICEF

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WaterAid Shows Africa’s Growing Access to Water

The nonprofit organization WaterAid released a new interactive map revealing that 14 nations in Africa are scheduled to have clean drinking water by the year 2030. This map was released as part of Africa Water Week, which took place from May 26 to May 31, to promote the idea that the accessibility of clean water in developing countries should have a central role in the U.N.’s post-2015 Sustainable Development Goals.

Since its establishment on July 21, 1981, WaterAid has worked to address the serious health, sanitation and hygiene issues that currently exist in a number of countries. This organization also realizes that education and a change in both policies and practices are needed so that an increase in hygiene and sanitation practices can help reduce global poverty. For more than 30 years, WaterAid has provided more than 19 million people with both clean and safe water in multiple countries, and it was even honored with a Top-Rated Nonprofit Award in 2013.

WaterAid hopes that the release of this map will encourage the U.N. to include global access to clean water, sanitation and hygiene by 2030 in their list of Sustainable Development Goals. This new set of goals is expected to expand on the Millennium Development Goals, which will reach their deadline Dec. 31, 2015. Before this deadline, the General Assembly is scheduled to confirm the Sustainable Development Goals in September. According to Water.org, water-related diseases are the cause of approximately 3.4 million deaths each year, confirming that this is a major global issue that needs to be addressed.

This map produced by WaterAid serves two very important purposes because it offers evidence that this is not only a worthy cause, but that it is also realistic and attainable. According to the map, 65.2 percent of people in Sub-Saharan Africa had access to water as of 2013, meaning that approximately 45 million people need to gain access to water per year to reach the 2030 goal. Although this is certainly a large amount of people, only 1.4 percent of the 2030 population needs to gain access to water every year in order to reach this goal.

– Meghan Orner

Sources: UN, WaterAid, WaterAid 2, Water
Photo: SAB Miller