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Ultimate Value of Millennium Development Goals

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Not all of them will be met, but that does not mean that they have not been effective. The deadline for the Millennium Development Goals (MDGs) will expire at the end of this year, and certain goals, like universal primary education and reducing maternal mortality by 75%, won’t be achieved. But the progress towards these goals is undeniable, and, while it may be hard to quantify, these gains likely would not have occurred without the MDGs.

The goals have effectively highlighted certain issues. The U.N.’s developmental outline was embraced by a multitude of countries upon its release in September of 2011. As such, it has been a focus of the international policy and development strategies of many countries, as well as providing a yardstick against which to measure progress.

While progress can be attributed to many diverse factors, including individual countries’ economic growth or political stability, one area where the impact of the MDGs is clearly perceptible is in foreign aid. Global aid reached $128 billion in 2009, twice that of a decade earlier. The majority of that aid is going to the world’s poorest countries, particularly for organizations including the Global Health Initiative, the Global Climate Initiative, and Feed the Future.

These initiatives, as well as all other aid and funding aimed at reaching the Millennium Goals, have already reached millions of people globally. And already in the works is a framework for a new set of development goals, to supplant the current MDG’s. For the long term, the impact of the Millennium Development Goals has only just begun.

– David Wilson

Sources: Christian Science Monitor
Photo: Oxfam

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Poverty Reduction in the Comoros

Poverty Reduction in the Comoros
The Comoros consists of four islands located in the Indian Ocean near Madagascar and Mozambique. Affectionately calling their country Masiwa, or “the islands”, the population totals to 1,080,000 citizens. The country, among several other small island states, is considered underdeveloped. Although the country gained independence in 1975, political and institutional crises created sustained instability.

In 2012, the Union of the Comoros, under the leadership of the newest president, Dr. Ikililou Dhoinine, drafted an official Poverty Reduction Strategy, highlighting six distinct goals to reducing their nation’s poverty.

1. Stabilize the economy by building a foundation for strong equity.

Although the external debt of the Comoros is said to remain unsustainable, the country’s external trade has increased from 47.8% in 2010 to 52% in 2011, increasing imports from 8.9% in 2010 to 9.1% in 2011.

2. Strengthen profitable sectors, including institution building and participation of private economic operators.

The Comorian government has set a priority to repair highly damaged roads including 17 km on Ngazidja, 17 km on Ndzouani, and 6.5 km on Mwali, among other main highway repairs.

3. Strengthen governance and social cohesion.

Studies on citizenship, prejudice, discrimination, the roles of women and youth in society, the establishment of 16 peace committees, introducing biometrics into the electoral process, and the institutionalization of a national commission to fight corruption.

4. Improve the health of citizens.

According to the recently drafted strategy, 300 households are currently benefiting from implemented sanitation programs, far surpassing the target set in 2011. A sanitary water network has reached 23 km, active in Djando on Mohéli, Domoni, and Sima on Anjouan.

Fighting against avoidable illnesses has also made significant progress. Through obtaining instruments and equipment, support for training programs, and the installation and management of vaccine distribution. Comorians were able to see high percentages of vaccination effectiveness per antigen.

5. Promote education and vocational training.

The main objective in education was to improve access to educational institutions per capita. Enrollment in professional and vocational roles reported an increase from 3% in 2010 to 8% in 2011. Although this rate is lower than the projected improvement of 15%, there has been a significant increase in admissions at the University of the Comoros.

6. Promote environmental sustainability and civil society.

Priority zones for biodiversity conservation resulted in the completion of five inventories of flora and fauna, exceeding the 2011 forecast. 1,531 citizens were educated in several areas of agricultural management, complying with government-instated goals for sustainable use of renewable resources.

Although one out of two people in the Comoros is considered poor, the Comorian government is taking active steps to reduce their poverty and improve the lives of their citizens.

– Kali Faulwetter

Sources: IMF, Every Culture, Maps of World

The Future for South Sudan

The Future for South Sudan
A year ago, Sudan and South Sudan were on the brink of war, but this month a deal between the two countries was finally implemented, allowing production in South Sudan’s main oil field to resume. This region, the Palouge oil field, accounts for 80% of the country’s oil production and has not been operational for 16 months due to disputes regarding the export of the oil.

This resumption of operations marks a significant moment in South Sudan’s brief history. Since its independence two years ago, the nation has suffered dramatic setbacks to its economy. The fledgling nation’s GDP contracted by 52% last year alone, while government revenues from oil-backed loans were cut by 98%. Now, however, with a pipeline deal in place with the north, South Sudan will be able to ramp up production to pre-independence levels.

After the drastic cuts in expenditure necessitated by the cessation of oil production during the last two years, this influx of revenue should significantly boost the country’s economy. South Sudan will have to diversify away from oil as the primary revenue generator over the next few years as reserves disappear, however, for now, the hope remains that oil profits will allow this nascent economy to establish itself. A stable economic platform marks the first steps in allowing the country and its people to grow.

– David Wilson

Sources: The Economist
Photo: Royal African Society

What is Davos? – The World Economic Forum

What is Davos? - The World Economic Forum
The World Economic Forum is colloquially coined as “Davos”, after Davos, Switzerland, the city in which the conference is housed annually. The WEF is an independent organization, dedicated to improving the economic state of the globe by incorporating leaders in business, politics, academics, and civil society to influence global, national, and industrial decisions.

Founded in 1971, the World Economic Forum started out as a humble group of business leaders, meeting under the umbrellas of the European Commission and the European Industrial Associations. The chair of the first gathering, Klaus Schwab, led 440 participants from over 30 countries in Davos to commemorate the finding of this non-profit organization, and created the building blocks to repeat the forum annually each January.

WEF is designed to be independent from any political, partisan, or national interest. This allows the participants in the forum to develop cross-cultural objectives to fighting economic weakness around the world.

A 1983 Forum document described the meetings as

“One of those increasingly rare international events where formality can be dispensed with, where personal contacts can be made, where new ideas can be tried out in complete freedom, where people are aware of the responsibilities involved in belonging to an international community, where we have time to look at the really important issues rather than everyday pressures. This is what we call the Spirit of Davos.”

The purpose of the WEF annual meetings varies from year to year, but all topics fall under the theme of ensuring that world leaders and attendees of the conference exercise their responsibilities “jointly, boldly, and strategically” to improve the economic state of the world for its future inhabitants.

WEF achieves this goal by collaborating with people, systems, and technologies to created indispensable leadership challenges to cultivate “new models, bold ideas, and personal courage to ensure that this century improves the human condition rather than capping its potential.”

In 1994, the World Economic Forum welcomed its 1,000th member, and decided to cap membership at that number, in order to ensure quality in member conversation and benefits.

– Kali Faulwetter
Source: Weforum, Weforum- Executive Summary
Photo: Business Week

Deciphering the Human Development Index

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s The Human Development Index (HDI) is a composite measure of health, education, and income which was introduced by the United Nations Development Programme in 1990 as an alternative to purely economic assessments of national progress, such as Gross Domestic Product growth. In the field of international development, the HDI soon became the most widely accepted and cited measure of its kind.

Many developing countries in the 1980s faced strict structural adjustment conditions imposed by financial institutions like the World Bank and the International Monetary Fund.  To avoid a financial crisis and get the loans they needed, these countries had to undergo massive economic restructuring that involved currency devaluation, government spending cuts, business deregulation, and reducing taxes for the wealthy. Not surprisingly, the social impact was harsh for the average citizen and the human condition worsened. Do you remember the images of people burning money to keep warm? It was in light of this situation that the United Nations advocated for a human development approach, as opposed to a business development approach.

1990 was the beginning of a campaign by the UNDP for a people-focused strategy towards development, and hence the birth of the Human Development Index. The HDI emphasized that people and their capabilities should be the ultimate criteria for assessing the development of a country, not economic growth alone. The HDI was designed to reflect average achievements in three basic aspects of human development – leading a long and healthy life, being knowledgeable and enjoying a decent standard of living.

The main components used to calculate a country’s HDI are Life Expectancy at Birth, Gross National Income per Capita, Mean Years of Schooling and Expected Years of Schooling. From these, a number between 0 and 1 is produced – with 1 being the best possible HDI and 0 being the worst possible HDI. As of 2012, Norway ranked number 1 out of 187 countries with an HDI of 0.955.  Niger and the Democratic Republic of the Congo tied for last place with an HDI of 0.304.

The HDI can be revealing in other ways as well. For example, how is it that two countries with the same level of GNI per capita can end up with such different human development outcomes? The Bahamas’ GNI per capita is higher than New Zealand’s (by 17%) but because life expectancy at birth is about 5 years shorter, mean years of schooling is 4 years shorter and expected years of schooling differ greatly between the two countries; New Zealand has a much higher HDI value than the Bahamas.

Although the Human Development Index is a more holistic measure of human development in a country when compared to GDP per capita, the HDI is still not all-inclusive. The HDI, for example, does not reflect political participation or gender inequalities. The Inequality-adjusted HDI, Gender Inequality Index and Multidimensional Poverty Index offer other insights into a country’s development status.

According to the 2012 HDI, the top ten countries with the best human development are:

1.    Norway

2.    Australia

3.    USA

4.    Netherlands

5.    Germany

6.    New Zealand

7.    Ireland (tied for 7/8 spot)

8.    Sweden (tied for 7/8 spot)

9.    Switzerland

10.   Japan

Out of the 187 countries counted in the 2012 HDI, the bottom ten countries with the least human development are:

177.  Sierra Leone

178.  Burundi

179.  Guinea

180.  Central African Republic

181.  Eritrea

182.  Mali

183.  Burkina Faso

184.  Chad

185.  Mozambique

186.  Democratic Republic of the Congo (tied for last place)

186.  Niger (tied for last place)

– Maria Caluag

Source: UNDP
Photo: Guardian

Grow Africa: Agriculture First

Grow Africa: Agriculture First
The call to end global poverty by the year 2030 has been sounded, but the real question is, where do we focus? Grow Africa is a partnership platform that seeks to accelerate investments in Africa’s agricultural sector by bringing public and private partners together. Their goal is to increase private sector investments, enable multi-stakeholder partnerships, and expand knowledge and awareness of the most effective practices and initiatives.

Because most of Africa’s poorest people live in rural areas on small farms, the goal to increase rural productivity seems a good place to start. The acceleration and improvement of the agricultural sector would lead to a quickening of the process of urbanization. This growth would undoubtedly support economic stability and success. The increased food supply will also aid tremendously in the fight against hunger.

Grow Africa has initiatives in many African countries including Ethiopia, Ghana, Kenya, and Rwanda. These programs focus on commercial agriculture, local investments in commodities, and the strengthening of infrastructures such as irrigation canals and hydropower. Their first annual report showed over $3.5 billion in investments across the eight countries supported by Grow Africa. These investments allowed for around $300 million in sales from farmers as well as 800,000 smallholders that were reached and provided with training and sourcing.

While Grow Africa is focused on only one part of the developing world, if their reports continue to be positive and foster growth and development, other organizations and investments would very likely begin to pour into other developing regions such as Asia. In order to ensure long-term economic success, it is important to focus first on the development of agriculture. This focus will allow for a dramatic decrease in hunger-related deaths as well as an increase in economic stability, not only for farmers but for all those living in developing countries.

– Sarah Rybak

Sources: Grow Africa, The Globe and Mail

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

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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