How the US Benefits from Foreign Aid to Azerbaijan

Since its formation in 1992, Azerbaijan has had positive diplomatic relations with the United States. The U.S. has affirmed its commitment to strengthening democracy in the region, as well as diversifying the economy and promoting regional stability. In 2017, the United States’ government gave $15.31 million in foreign assistance to Azerbaijan.

Over $4 million of that contribution went towards democracy, human rights and governance agendas. Another $3.63 million went towards economic development. Here are the four major ways in which the U.S. benefits from foreign aid to Azerbaijan.

Positive U.S.-Azerbaijan Relations Support American Jobs

Azerbaijan purchases American services. In 2010, Azerbaijan signed a $1 billion contract purchasing eight civilian airplanes from the American Boeing company; this contract supported 11,000 American jobs.

That same year, seeking to create its first communication satellite, Azerbaijan signed another contract with the Orbital Sciences Corporation in Virginia. The $205.3 million contract created 1,500 American jobs.

U.S. Companies’ Substantial Stakes in Azerbaijan Economy

Azerbaijan has welcomed U.S. investment in its economy. The Law on Protection of Foreign Investments allows for foreigners to directly invest in any activity of the Azerbaijan economy in which a national investor may also invest.

U.S. companies quickly capitalized on this opportunity. Many have long-standing investments in offshore oil development projects; however, experts predict a decline in this industry.

As a result, several U.S. companies are investing in other fields of the Azerbaijan economy such as agriculture, telecommunications, tourism and transportation services. The U.S. also regularly exports aircraft and heavy machinery to the region.

Azerbaijan: Useful Ally in Combating Terrorism

Azerbaijan has a confirmed commitment to combating terrorism. The country is a member of several international organizations such as the Organization for Security and Cooperation in Europe, and the Organization for Islamic Cooperation. The collaborative work of Azerbaijan’s State Security Forces and the Foreign Intelligence Service have made sizeable contributions to the international community’s efforts to combat terrorism.

Furthermore, as a member of the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), Azerbaijan has also taken steps to deter money laundering schemes that could finance terrorism.

Given this commitment, positive relations with Azerbaijan could help advance U.S. security goals in the region.

Successful Market Democracy Could Provide a Model for the Region

The primary objective of USAID contributions in Azerbaijan is “to support Azerbaijan’s reform processes by promoting competition and pluralism in the society, laying the foundations for a sustainable market-based democracy.”

As a Muslim-majority country with a history of religious tolerance, Azerbaijan could be a model for countries in the region. Azerbaijan shares a border with both Russia and Iran. If Azerbaijan can successfully become a market economy, perhaps it can provide a model for similar countries in the region.

How the U.S. Benefits From Foreign Aid To Azerbaijan

By providing aid to the Azerbaijan people, the United States is ensuring the continued economic and security cooperation with a proven ally. Though often overlooked by popular U.S. media, Azerbaijan’s development has a notable effect on the American people.

– Joanna Dooley
Photo: Flickr

How the US Benefits from Foreign Aid to Moldova

The U.S. government has invested over 1 billion dollars in Moldova since 1992 through various foreign aid assistance programs. In times where many Americans think that the government should concentrate on domestic aid, it is important that they should be informed about how the U.S. benefits from foreign aid to Moldova. So, how is the aid America invests in Moldova promoting American interest?

The Economic Benefits

Foreign aid is often characterized as an investment because it typically brings a return for the American people. This is especially true in the case of American businesses. In Moldova, the poorest country in Europe, the logic of foreign aid applies perfectly.

The stated goal of U.S. foreign aid to Moldova is to “target assistance at the country’s most promising economic sectors; which will help create economic opportunities that will raise incomes, promote job growth, and improve living standards.” By improving the economy and living standards, the foreign aid investments will then create a new market for American goods, demonstrating the mutual benefit for Moldova and the United States.

When the U.S. government provides aid for an impoverished country, the country’s economy improves, and typically so do the lives of its people. With this improved quality of life, citizens of the country are transformed from targets of charity to consumers with purchasing power. Instead of barely surviving, they become productive members of society, which results in new markets for U.S. companies. Not only does this create more potential customers for U.S. companies, but the increased demand for American made goods can create jobs in the U.S. to create these goods.

USAid in Moldova

USAID, America’s primary foreign aid agency, plays an important role in connecting American businesses directly with these new consumers in developing markets. USAID accomplishes this by encouraging American companies to partner with local people to help educate and support them on projects in local areas.

The result is the creation of a mutually beneficial relationship, whereby the target of the aid becomes self-reliant and also aligned with U.S. companies. In this way, the U.S. benefits from foreign aid to Moldova as well as Moldova itself.

Furthermore, the U.S. Embassy in Moldova implements programs such as The Cultural/English-Language Small Grants Program, to use education and cultural exchange to help foster mutual understanding between the United States and Moldova. It is the hope that this mutual understanding will lay the foundation for further economic, cultural, and political cooperation between the two countries.

National and International Security

Another common argument in favor of foreign aid is that this assistance helps stabilize vulnerable countries. This lowers the probability of future conflict and, as a result, keeps Americans safe. Syria is the most evident example of what can happen when a country becomes unstable. After the country experienced a drought in 2007, the resulting destabilization and actions by a repressive regime created the terrible crisis we see today.

This is the very reason that the U.S. foreign aid to Moldova targets economic growth in Moldova’s unstable agricultural industry as well as the consolidation of democratic institutions. If there were a slowdown in Moldova’s agricultural industry, which accounts for approximately 17 percent of its GDP, or a crackdown on democracy, the resulting destabilization could be problematic, especially given Moldova’s proximity to Russia.

Therefore, the U.S. benefits from foreign aid to Moldova by helping to minimize the risk of breakdowns in the critical areas of Moldovan society, which helps ensure stability, economic opportunity and pro-American sentiment in an otherwise vulnerable country.

– Taylor Pace

Photo: Flickr

Three Ways Countries Could Make Foreign Aid More Effective

A highly contentious issue, the effectiveness of U.S. foreign aid has long been the subject of debate among congressmen and concerned citizens alike. From how much money is allocated to recipient nations to the impact that aid actually has on issues such as poverty and civil war, advocates and critics of foreign aid point to various criteria to evaluate the merits, or lack thereof, of continued U.S. aid.

The Case for Aid

Proponents of foreign aid insist programs are instrumental in fostering socioeconomic growth, reducing poverty and improving the overall quality of life. There are certainly examples that support this notion. USAID-funded programs have significantly reduced maternal and child mortality, helping at least 4.6 million children and 200,000 mothers, according to agency officials. As of 2015, more than 7.6 million people had received improved access to drinking water and more than 4.3 million people had improved sanitation. Furthermore, 41.6 million children saw improved reading instruction and safer learning environments between 2011 and 2015.

Foreign Aid Skepticism

Yet critics of aid remain steadfast in their opposition, pointing to fraud and corruption, lack of transparency, foreign aid dependency and general ineffectiveness as indicators. Around $1.17 billion in aid that was given to Malawi in 2012 was exploited by corrupt politicians and businessmen. At least $30 million was taken from the treasury and robbed from the 17 million poor and AIDS-ravaged inhabitants. In fact, these sentiments are so strong that, according to ABC News-Washington Post polls, “the only possible federal spending cut a majority favored was for foreign aid.”

Clearly, there are two sides to the story when it comes to foreign aid. When allocated and distributed properly, it can work wonders for the world’s poor and developing countries. However, corruption and misuse still stand in the way of much of its potential. These issues can be addressed by exploring various ways of making foreign aid more effective.

Making Foreign Aid More Effective

There are three important ways that countries around the globe can make foreign aid more effective.

1. Improving Aid Quality: By dividing foreign aid into smaller projects, donor countries can control the volatility and lack of predictability of aid, thus significantly decreasing the deadweight loss of development assistance. In 2008 alone, deadweight losses from official aid amounted to $7 billion. Smaller projects, according to Brookings, can lead to further innovation and scaling up, thus offsetting deadweight losses.
   
2. Linkage: In order for foreign aid to maximize its impacts in a developing country, it must be linked to other important development policies, namely trade, investment and migration. For example, in Haiti and Pakistan, countries in which the U.S. has a significant economic stake, trade restrictions on textile and garment imports prevent further growth.
3. Mobilizing the Private Sector: It is generally accepted that in order to foster economic growth and development, countries must turn to the private sector. Unfortunately, foreign aid has yet to reflect that sentiment. In fact, much of it is still directed toward the public sector. Cities harbor the most economic growth yet receive only $1 to $2 billion in aid a year. Approximately one billion slum dwellers reside in the city centers of developing countries and represent the key to mobilizing economic growth.

At the end of the day, foreign aid aims to foster social and economic growth in developing countries by enfranchising governments, health care systems, education institutions and infrastructure. Consequently, growth in these developing nations helps developed nations by opening up new markets and increasing stability. When confronted with corruption or misuse or any of the other criticisms of foreign aid, governments should not slash foreign aid budgets, but rather should apply these three crucial ways of making foreign aid more effective.

– McAfee Sheehan
Photo: Flickr

US Benefits from Foreign Aid to Guinea

Guinea is one of the world’s most impoverished countries. More than half of its population lives below the poverty line and 17.5 percent struggle for food security. In 2010, Guinea established its first elected, civilian government. The U.S. benefits from foreign aid to Guinea and its strong economic potential. Assistance with Guinea’s health, stability and effective governance is not only deeply needed by Guinea, but also something from which the U.S. ultimately gains.

Strong Economic Potential

Guinea has rich mineral resources, possessing over half of the world’s bauxite (aluminum ore) reserves. The country is also abundant in high-grade iron ore, diamonds, gold and uranium. The mining sector in Guinea is thus a major part of its economy: about 80 percent of Guinea’s foreign exchanges consist of joint-venture bauxite mining and alumina operations. Compagnie des Bauxites de Guinee (CBG), one of the major two routes for exporting Guinea’s bauxite, is a venture jointly owned by the Government of Guinea, a U.S. company called Alcoa, and an Anglo-Australian company Rio Tinto Group. The other major export force is Chinese conglomerates as well as small and midsize business.

Guinea is also blessed with reliable rainfall, abundant sunshine and natural geography that are favorable for renewable energy. The 240MW Kaleta Dam project, constructed and financed by China, began operating in 2015 and has since more than doubled Guinea’s electricity supply. The country’s climate means that it has great potential for commercial agriculture as well.

Investment Friendly

Pressed to improve development, Guinea has been increasingly open to foreign investment. The country’s government has been depleted of financial resources to improve the economy, especially since the Ebola outbreak in 2014-2015. Meanwhile, enterprises in Guinea are in need of more credit than is available.

In 2016, the government launched a new website via the Investment Promotion Agency of Guinea (APIP). The website is meant to promote transparency and help make investments more smooth. The APIP also offers services to foreign investors, including creating and registering businesses, helping with access to benefits of the new investment code, providing information and research studies to interested investors, etc.

The Guinea government does not allow any foreign investor to own media in the country, but besides that, there are no restrictions discriminating against foreign investors. The U.S. also helped a group of foreign investors in Guinea and the government of Guinea form a liaison in 2015.

Barriers to Overcome

While Guinea has extremely investment-friendly laws, the enforcement of those laws needs a stable political environment and a reliable legal system. It is worth noting the country had its first democratically-elected government in 2010 after the country’s independence in 1958, but state institutions are still recovering from two years of rule by the military junta. It’s also faced a number of security and socio-economic vulnerabilities.

Guinea has a disproportionately large military with serious, deep corruption and human rights abuses. It is also feared by law enforcement because of the potential for military revolt. Even though a panel was formed in 2010 to investigate the violent crushing of tens of thousands of peaceful democracy protesters in 2009, two military commanders that the U.N. revealed to be guilty were able to keep their government positions.

Aid for Stability and Development

U.S. foreign aid would directly address barriers to private sector growth as well as improvement of economic life in Guinea in general. For one thing, the U.S. supported the 2010 election process significantly, which has greatly improved the country’s development prospects.

U.S. foreign aid was restricted in 2008 and 2009 due to the rise of the military coup at the time, but restrictions were lifted after the country’s political transformation. Aid from the U.S. helps improve democratic practices, governance, security sector reform, regional peace and stability, etc. These aspects of society are essential for the alleviation of poverty and the establishment of a solid economic infrastructure. A peaceful Guinea is also viewed as significant for restraining conflict in a region already plagued by political tension and armed struggles.

The Consortium for Elections and Political Process Strengthening, supervised by the USAID, supported the 2015 presidential election and 2018 communal elections. It strengthened Guinea’s Independent National Electoral Commission as well as civil society organizations in monitoring the domestic election.

Ultimately, U.S. foreign aid will assist with areas of life in Guinea that in turn presents a great economic potential for the U.S. In other words, the U.S. benefits from foreign aid to Guinea.

– Feng Ye
Photo: Google

US Foreign Health Assistance Programs Change Lives

The beginning of the 20th century saw the United States begin to take its place at the forefront of the international stage. Fast forward to the middle of the century and the end of WWII and the United States took its place as a world superpower. With this newfound responsibility, the government of the United States began to do more to secure the safety and health of citizens of any nation in its sphere of influence.

Key Aspects of U.S. Foreign Health Assistance

• U.S. foreign health assistance began with the Foreign Assistance Act of 1948, better known as the Marshall Plan. The plan’s goal, which it accomplished successfully, was to economically rebuild a war-torn Europe. This included hospitals and universities to train doctors.
• The United States Agency for International Development (USAID) was founded in 1961 by President John F. Kennedy as a tool to better aid allied countries and countries teetering on the edge of the West and Communism. The organization also brought all of President Eisenhower’s foreign assistance programs under one agency.
• U.S. foreign health assistance in the USAID is under the jurisdiction of The Bureau of Global health. For 55 years, the Bureau for Global Health has worked towards strengthening health systems, combating HIV/AIDS, combating other infectious diseases and preventing child and maternal deaths. Past Presidents have each had a hand in improving the operation and mission of the Bureau for Global Health.
• Between 2000 and 2015, Presidents George W. Bush and Barack Obama both introduced plans to combat malaria and HIV/AIDS. An estimated 6.2 million malaria deaths were prevented around the world.

Global Development Alliances

The USAID Bureau for Global Health is not alone in its fight — Global Health Development Alliances have partnered with USAID since 2001 to provide U.S. foreign health assistance around the world. These partners come from the private sector, and strive to both open new markets and help the local populace in need.

Private medical companies involve themselves in the alliance program — such as “The Utkrisht Impact Bond” led by Merck for Mothers and UBS Optimus — along with other large companies to target infant and maternal mortality in the Rajasthan region of India. Their program currently reaches up to 600,000 people and aims to save 10,000 mothers and children by 2020.

Multilateral and Bilateral Efforts

From 2006 to 2017, the U.S. foreign health assistance programs received a budget increase from $5.4 billion to $10.7 billion. Bilateral efforts comprise 80 percent of the U.S foreign health assistance budget, and one of these efforts is the Family Planning and Reproductive Health Program run by USAID.

The program combats HIV/AIDS, prevents child and maternal deaths and reaches 24 countries on three continents. By 2020, USAID’s goal is to educate 120 million women and girls with family planning information, commodities and services.

Multilateral efforts by the United States government include participation in and funding given to, organizations such as the World Health Organization (WHO) and other multi-government organizations and charities. Unfortunately, the budget request for U.S. health foreign health assistance programs was set at $7.9 billion.

The United States Peace Corps

The United States Peace Corps was founded by President John F. Kennedy in 1960. Its goal then and still today is to help people around the world with the support of the United States government. By helping people in need, Peace Corps Volunteers spread goodwill about the United States and educate people about U.S. citizens and culture. They are probably best known for their English teaching program, but they also specialize in health initiatives.

Such initiatives include participating in programs initiated by Presidents Bush and Obama that reduce people’s exposure to, and number of cases of, malaria and HIV/AIDS. As part of their cooperation with USAID in 2012, the Peace Corps launched the Global Health Service Program to draw the attention of trained health professionals to countries in need.

Members of this program have a one-year service time rather than the usual two years. These volunteers not only help patients in the country, but they also pass on their knowledge and experience to sustainably help these populations in the future.

Center for Disease Control

In 2016, the Center for Disease Control (CDC) was granted $427 million from the United States Congress to participate in combating f HIV/AIDS, malaria and other infectious diseases, as well as promoting immunization and emergency response. The CDC was also granted $10.9 million to participate in recovery efforts in Haiti.

On January 10, 2010, Haiti was hit by a 7 magnitude earthquake. Since then, the CDC has helped the citizens of Haiti in various ways — stopping the spread of infectious diseases through the Haitian health system, educating the Haitian people about the spread and treatment of these diseases and helping the Haitian government reconstruct their health systems. The latter aid is a program first for the CDC.

International Aid Changes Lives

U.S. foreign health assistance has been a major help to many struggling people and countries around the world. Millions of lives have been changed for the better and saved because of the United States’ efforts.

Unfortunately, the budget request for U.S. health foreign health assistance programs was set at $7.9 billion. Although cuts will have to be made in staffing and funding around the world, men and women will not stop trying their best to work with the U.S. government and make a difference.

– Nick DeMarco
Photo: Flickr