Archive for category: Foreign Aid

Foreign aid coverage and information.

Books For Africa Teams Up With The Peace Corps

Books For Africa Teams Up With The Peace CorpsBy pairing with the Peace Corps and other nonprofits, Books for Africa has become the world’s largest shipper of donated books to the African continent. With its headquarters based in St. Paul, Minnesota, Books for Africa has shipped nearly 27 million books to 48 countries in the past 25 years.

In countries where few classrooms have suitable resources, Books for Africa ship libraries of new scholarly and leisurely texts as well as new law and human rights texts. Classrooms in countries such as Ghana, Ethiopia and South Africa are filled with avid learners whose parents have sacrificed greatly to provide them with an education but often lack adequate supplies.

While many classrooms have adequate textbooks to constitute as reading material, noted on project organizer, the establishment of reading centers such as libraries indulge the hope that “Ethiopian children and their families will be able to experience the joys of reading and literacy activities directly.”

– Pete Grapentien

Source Huffington Post

Social Impact Bond Model of International Aid

Social-Impact-Bond-Model-of-International-Aid
The Social Impact Bond model of international aid is a relatively new way of helping foreign countries; many call it a “pay for success” model. Social Impact Bonds, or SIBs, are based on outcomes, rather than intentions. Despite the name, they do not fit the average definition of a “bond,” which would imply those receiving the investors’ money are obligated to return it no matter what happens. Rather, in a nutshell, the independent investors will only get their money back (plus interest) if the program succeeds. The social impact bond model of international aid is meant to be a preventative course of action to benefit society; only those programs that have the most chance of success will be funded.

Due to the existence of private investors, the social impact bond model of international aid does not threaten public funds or rely on the United States (or any other country’s) federal budget. SIBs could also provide a huge benefit to foreign aid if the right programs exist. Rather than merely expecting those wealthy enough to donate their cash to these causes, they are investing in them, and like any other investment, there is a chance of failure. Still, if they invest wisely, not only will they reap the rewards, but so will those who have received help from the various nonprofits.

Although there are certain flaws to SIBs, because not all programs will be able to gather funding (such as pilot programs, because they have not proved they can be successful), it certainly would help in some cases. Moreover, it will protect the U.S. budget and, if successful, will benefit a large number of people across the globe, including investors in the U.S.

Instiglio is an example of a nonprofit organization that deals primarily with social impact bonds.

– Corina Balsamo

Sources: McKinsey, US News
Photo: Tech