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Richard Crespin Joins USGLC

richard-crespin-usglc
Richard Crespin has joined the U.S. Global Leadership Coalition (USGLC) as the Director of Business Outreach. He will be responsible for working as a USGLC ambassador, engaging Americans about the importance of international affairs programs in strengthening markets for U.S. goods and services. He will convey how investing abroad creates jobs in the United States and helps to keep the US secure.

USGLC is excited that Crespin has chosen to join their team. USGLC believes Crespin’s experience as a business leader with experience in corporate opportunity and corporate responsibility will mesh incredibly well with their organization’s goals and mission. Crespin provides the USGLC a unique opportunity to demonstrate how U.S. engagement abroad is good for business at home.

Crespin’s resume boasts substantial experience working in the private, public, and civil sectors. He was worked as the Executive Director of the Corporate Responsibility Officers Association. He has also worked with noteworthy companies and organizations including the American Red Cross, the Inter-American Development Bank and the Department of Defense.  He attended George Washington University and Harvard Business School. Currently, he works for the U.S. Chamber of Commerce Foundation, the Editorial Board for the Sustainable Business Forum and on the Board of Directors for the Society for International Development among others.

Crespin has stressed the importance of investing in foreign economies. He has said that American presence in these markets is a, “surefire way to grow our own economy and create quality jobs across the country.” As the new Director of Business outreach, Crespin says he is excited to work with businesses to build support for new tools of development and diplomacy.

The USGLC provides an excellent platform for outreach. The USGLC is a broad-based network of 400 businesses and NGOs, national security and foreign policy experts and business, faith-based, academic and community leaders. Members support a smart power approach that elevates diplomacy along with defense, in effect building a better and safer world.

– Caitlin Zusy 
Source USGLC
Photo Twitter

ACDI/VOCA Eradicates Economic Endangerment

ACDI/VOCA Eradicates Economic Endangerment

ACDI/ VOCA is an organization dedicated to making financial stability accessible to individuals across the globe, regardless of their socio-economic status. One look at its name doesn’t tell a reader much, but the name of this organization is just as peculiar in appearance as it is rich in meaning.

The name dates back to 1977, referring to the merger of the Agricultural Cooperative Development International (ACDI) and the Volunteers in Overseas Cooperative Assistance (VOCA).

ACDI, as its own entity, sought to develop joint ventures around the world that indicate the values present in sustainable dual ownership, democratic leadership, and economic sustainability. Some of ACDI’s most notable accomplishments include the founding of the Indian Farmers Fertilizer Cooperative (IFFCO), re-institutionalizing collective banking in Poland, contributing to food aid monetization in several countries, and creating business-oriented farming practices in Ethiopia and Malawi.

Migrating from an exclusively “co-op” focus, ACDI began to pay greater attention to economic developments in agriculture, food security, enterprise development, poverty alleviation, and inside-out community development.

In VOCA’s circles, before the two organizations merged, the implementation of the USAID-funded Farmer-to-Farmer program was at the cornerstone of their advocacy. Over 11,00 assignments were carried out in 130 countries under this program, providing a short-term experience as building blocks for long-term development.

Once 1977 rolled around, these two international economic organizations saw it fit to join forces.

This new partnership allowed for a unique mix of ACDI’s long-term development initiatives and VOCA’s close attention to individual experience. Together, they cultivated healthy economic communities that valued each citizen—and created a system to last. For the sake of ease (and thankfully), the two organizations decided to shorten their name to an acronym and became ACDI/VOCA (pronounced A-C-D-I- Vōca.)

ACDI/VOCA describes themselves as follows:

“[We blend] business and technical acumen with humanitarian concern. Having worked in 145 countries, [we have] established a reputation for implementing successful, large-scale projects addressing the most pressing and intractable development challenges. [Our] approach does not rely on short-term interventions or supply-driven technology transfer directed at single problems in isolation. Rather it looks at problems holistically and taps an array of resources to provide lasting results.”

Funding for ACDI/VOCA comes mostly from the U.S. Agency for International Development, the U.S. Department of Agriculture, the Bill & Melinda Gates Foundation, and private sector firms, among others.

– Kali Faulwetter

Source: ACDI/VOCA
Photo: ACDI/VOCA

Global Economic Growth & Stability Crucial for Fighting Poverty

Global Economic Growth & Stability Crucial for Fighting Poverty
Rising income inequality around the world is putting anti-poverty efforts at risk by hurting global economic growth and stability, according to International Monetary Fund Managing Director Christine Lagarde.

In a speech to the annual Bretton Woods Committee in Washington, DC on May 15, Lagarde outlined three critical points: economic stability is essential for poverty reduction; growth and equity are mutually reinforcing and important parts of sustainability; and fiscal policies can improve income equity and lower poverty rates.

The theme of the annual Bretton Woods meeting was “ending poverty in a generation.”

Over 35 percent of the world’s wealth is controlled by just the top 0.5 percent of the world’s population Lagarde noted in her speech. The trend is a growing concern for the world’s economy, and one the IMF is starting to examine more closely.

Over the past 25 years, rising income inequality has become an emerging issue for policymakers globally with increases in most advanced and developing countries. The global recession in recent years has created a lot of economic upheaval, she noted, and the IMF has stepped up its efforts to help low-income countries cope with crisis. “For this reason, the first best contribution that the IMF can make to reducing poverty is to help avoid crises.”

Global economic growth must be paired with income equity in order to insure stability, Lagarde said. She called for preservation and expansion of the “total size of the economic pie” available, along with a more equitable distribution of resources.  According to IMF research, societies with more equal income distribution are more likely to achieve lasting growth, which also helps alleviate poverty levels, Lagarde said.

“Equality is good for growth, but is growth good for equality? It may be a necessary condition for reducing poverty, but it has not always reduced inequality,” Lagarde said.

– Liza Casabona
Sources: IMF
Photo: Le Monde

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Africa: Working to End Hunger Internally

Africa: Working to End Hunger Internally

When discussing the issue of hunger and global poverty, most immediately think of foreign aid and intervention from donors as being the main solution to the problem. What seems to be disregarded is the power of those living in poverty and the influence of those in power in impoverished countries. Now, leaders in Africa are working to end hunger internally. A recent conference brought together delegates from five African nations with the Director-General of the Food and Agriculture Organization to develop an effective way to eradicate hunger in Africa.

FAO looks to form innovative partnerships in Africa to “build on experiences and stop the suffering of the estimated 23% of all Africans who remain undernourished”. While the organization’s program, Unified Approaches to End Hunger in Africa, will work to provide greater access to water, food, and education, the program builds off of the already increased production of goods and “consistent political will” in many developing African countries.

Countries like Angola and Ethiopia have run social protection and national development plans, promoting domestic agriculture and the provision of water as well as infrastructure improvement. Services including microfinancing and “cash-for-work public infrastructure programs” work to accelerate development in order to end poverty. These internal programs work to create stable societies and economies that are more conducive to greater production in order to advance the protection of their citizens.

While partnership and foreign aid are incredibly important forces behind eradicating extreme poverty around the world, they are by no means the only work being done. It is necessary to take into account the work being done by these people that are often portrayed as hopeless and helpless by the media; they are far from it and are working to end global poverty just as resolutely internally as developed countries are external.

– Sarah Rybak

Source: All Africa
Photo:Radio Netherlands Worldwide

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How Long Will It Take to Lift One Billion People Out of Poverty?

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In a 2013 paper published in the World Bank Research Observer, Martin Ravallion hypothesizes two possibilities in answer to the question, “How Long Will It Take to Lift One Billion People Out of Poverty?” In a pessimistic scenario, only factoring the developing world outside of China, he estimates that it would take 50 more years to achieve the task of lifting a billion relying on less than $1.25 per day. In a more optimistic scenario, he estimates that poverty reduction for a billion people could be achieved by 2025-30. At present, there are about 1.2 billion people globally subsisting on $1.25 per day.

Ravallion reasons that the optimistic scenario is possible if we continue with “staying-on-the-path” as seen in the 20 years between 1990 and 2010 in which the developing world halved its poverty rate. At this pace, it could be halved again in ten more years. This is not only because of China and India’s growth. Since 2000, gross domestic product (GDP) in the developing world has grown by 6% a year. The highest rates of GDP growth over the past decade have been in East Asia (8%), South Asia (7%), and Sub-Saharan Africa (5%) — “the three regions which account for the bulk of absolute poverty” globally. Ravallion’s findings defy the theory that developing countries are stuck in a poverty trap.

Ravallion points out that there are multiple solutions for lifting a billion people out of poverty such as fostering rapid economic growth, avoiding major financial and agro-climatic crises, and assuring that poor people are able to participate fully in that growth through access to schooling, health care, employment, and financial resources. The most sustainable solution for poverty reduction will vary from country to country and hence strategies to combat poverty should be derived at the country level.

But of course, why wait until 2025? If each country were given a boost in resources from foreign aid, each could expedite their poverty reduction efforts. Currently, the U.S. only contributes less than one percent of its federal budget to foreign aid.

– Maria Caluag

Source: World Bank
Photo:Tumblr

Cooperation Ituze Increases Food Security in Rwanda

rwanda cooperation ituze us uadf agriculture cassava development

In 1980, the U.S. Congress established the  U.S. African Development Foundation or UADF to provide grants to support solutions to economic problems in Sub-Saharan Africa. The solutions are made and led by Africans. Till date, UADF has provided $3.5 million in grants to Rwanda that have provided increased economic independence and increased food security for more than 200 cassava farmers in southern Rwanda by giving them better access to markets and higher incomes.

A crop purchase fund was set up under Cooperation Ituze so that it can grow and buy more cassava (or manioc) to process into high-quality flour in its milling factory. Cooperation Ituze has become self-sufficient and profitable by purchasing disease-resistant plants, expanding its drying facilities, and setting up rainwater harvesting systems. The rainwater harvesting systems establish a reliable water supply which enables Ituze to process cassavas year round. The Rwandan government constructed additional drying facilities because of Ituze’s success. Additional progress was made with agricultural training in cassava multiplication, modern agronomic practices, and soil maintenance.

Ituze’s sales revenues increased from $8,300 to 2012’s total of $115,000 in less than three years. This is an increase of 2,700% since its inception in 2010. Land cultivation has doubled to 175 hectares which allows farmers to grow cassavas for both their families’ consumption and processing into flour. The flour is packaged in Kigali, the nation’s capital, and sold in local supermarkets.

This breakthrough with Cooperation Ituze has far-reaching effects: more people are able to afford a nutritious meal and more children are free to go to school.

– Essee Oruma

Source: IIP Digital

African Consumers Ignored By the West

african-consumers
Frank Braeken, the executive VP of Unilever in Africa, believes that Western companies have long underestimated Africa’s consumers. He believes that Western companies have failed to realize Africa’s potential as a diverse, multifaceted market and that African consumers have been, “underestimated, underserved, and underserviced.” He feels the West has maintained a patronizing and generic outlook about the opportunities available in Africa.

Unilever has been working in and with African communities for more than a century. They have a presence in 15 countries, employing thousands of African workers.  Yet, even Braeken acknowledges that Unilever struggled to utilize the diversity of consumers across the continent.

Unilever is just now beginning to vary their company policy and strategy, breaking Africa into several distinct chunks, such as East Africa, West Africa, and South Africa. They are working to make their products and distribution strategies relevant for the different types of consumers across the continent.

Nielsen recently released a survey about the types of consumers in African markets. The results indicate that instead of simply being viewed as a continent, Africa should be viewed as, “54 separate and distinct countries with a wide array of political, economic, geographic, cultural, and social features.” They have indicated that Western companies need to stop thinking of Africa as one single consumer.

Western markets would be smart to tap into the African market as it has been and is projected to continue growing in spending on consumer goods, telecoms, and banking. This growth sets Africa apart as an attractive new business proposition for Western companies.

While economic growth and increased knowledge of the prospect of Western companies investing in Africa is growing, there are still problems that Braeken warns need to be addressed. Africa, for the most part, lacks adequate infrastructure, good governance, and states free of corruption. However, Braeken believes that if Western states continue to talk about Africa and the real issues then not only will his company grow, but many other companies will as well.

– Caitlin Zusy 
Source: CNN
Photo: Bloomberg

World Bank Places Africa as One of the World’s Fastest Growing Regions

World Bank Places Africa as One of the World's Fastest Growing Regions
In the World Bank’s latest bi-annual publication on the economic climate in Africa, called Africa’s Pulse, the organization asserted that economic growth in various African countries remains at seven percent or higher, making the region “one of the fastest-growing in the world.”

The publication stated that due to the improving global economic situation, high commodity prices, and increased foreign investment in several countries on the continent, prospects for continued economic growth remain very strong.

The World Bank did concede that in order to continue current levels of growth, higher levels of foreign investment in infrastructure, particularly in energy, were needed to push developing African nations forward. The report also cited increased levels of agricultural production and food security as the main concern in reducing poverty.

The World Bank Vice President of Africa, Makhtar Diop, said, “Without more electricity and higher agricultural productivity, Africa’s development future cannot prosper. The good news is that governments in Africa are intent on changing this.”

Africa’s Pulse specifically cited a boom in the industrialization of Africa’s natural resources, including mineral extraction, natural gas, oil, and mining as a vital factor in promoting continued economic growth, and expects that by 2020, all but four of five of all African countries will be participating in industrial mining of some kind.

The World Bank went on to acknowledge the importance of African governments using increasing revenues to re-invest money back into regional infrastructure, education, and health care.

Punam Chuahan-Pole, the co-author of Africa’s Pulse and economist at the World Bank stated, “If properly harnessed to unleash their full potential, these trends hold the promise of more growth, much less poverty, and accelerating shared prosperity for African countries in the foreseeable future.”

– Christina Kindlon

Source: World Bank

Jim Yong Kim: Poverty Is on the Agenda

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World Bank president has claimed that economic growth is essential to tackling poverty and creating jobs. The Guardian interviewed him following a recent keynote speech. In his speech, he announced poverty reduction and shared prosperity are to be the focus of his five-year World Bank presidency.

Economic growth provides monetary stimulation to economies, allowing people living in developing countries to buy more products, create jobs, and develop. Jim Yong Kim has emphasized that if we want to create global growth, we have to invest in human capital. This means we need to work to eradicate poverty, keep children in schools, and focus on programs like public health education.

Kim also touched on the Millennium Development Goals. Kim has stated that they are and were very important to focusing our international agenda. While we may not achieve them by 2015, they have given us concrete goals to work towards.

Targets are essential to help change people’s behavior. Kim has expressed his opinion that in order to reduce poverty, and achieve measurable outcomes, we need to focus on specific elements of the MGDs. Kim believes we need to do more in women’s and children’s health- the two groups most widely impacted by poverty.

While he praises the many successes in the elimination of poverty, Kim warns that reaching the goal of reducing the percentage of global poverty to 3% will be extremely difficult. It is encouraging, however, to see vocalized commitment from one of the most influential poverty reduction agencies in the world. Stating intent creates accountability- something the international community could do more of.

-Caitlin Zusy
Source Guardian
Photo Telegraph

Colon Misses Out on Panama’s Economic Growth

Colon Misses Out on Panama's Economic Growth
The Panama Canal is framed by Panama’s two largest cities. At one end is Panama City, a vibrant, bustling metropolitan center that is currently experiencing some of Latin America’s greatest growth. At the Canal’s other end, just forty miles away, lies the city of Colon, where potable water, electricity, structurally sound buildings, and meaningful work are all in short supply for the city’s 220,000 residents.

Panama has had an average economic growth of nine percent every year for the last five years. This is due in large part to foreign investment and development in Panama City, where Central America’s first subway is currently under construction. The tallest building in Latin America, a 70-story Trump hotel and condominium, is not out of place among newly constructed skyscrapers, malls, and restaurants.

But Colon has not enjoyed the same booming industrial and commercial development. The city has the largest duty-free trade zone in the Western hemisphere, which has long been a point of contention between residents and developers. Recent development within the zone has benefited businesses there, but not the city at large. The duty-free zone caused social unrest last year when Panama’s president passed a law allowing sale of land in and near the zone. Residents feared this would displace them from their homes and hurt their incomes. Several were killed in the protests.

The economic inequality between Colon and Panama City stems in part from racial segregation and discrimination. Racism is a long-standing problem in many Latin American countries, and Panama is no exception. Those with light skin are often viewed more favorably than those with dark skin in terms of wealth, attractiveness, and ability.

Colon is predominantly black, while Panama City has a larger percentage of European descendants. Many believe that racial discrimination has played a role in Colon’s economic depression.

The stark disparity between Panama City and Colon is an example of the unequal economic growth occurring all over the world. In many places, wealth remains concentrated where it is already abundant, while the poor remain poor, and grow poorer. Correcting this imbalance will require a multifaceted, in-depth, strategic approach that the world’s poor are unable to implement themselves. Therefore, those who have the means to do so are responsible for working to make humane living conditions and economic security realities for every person on the planet.

– Kat Henrichs

Source: NY Times
Photo: AP