Inflammation and stories on Foreign Aid

Posts

5 Ways Haiti Uses Its Foreign AidAccording to The World Bank, Haiti currently ranks as the poorest country in the Western Hemisphere. Of its 11 million residents, more than half live in poverty and an estimated 2.5 million of that demographic live in extreme poverty, or on less than $1.12 USD a day. The Human Development Index metric assesses the development of a country based on the upward mobility of its residents. On this scale, Haiti ranks 169 of the 189 countries which have been analyzed.

In addition, Haiti has a history that demonstrates its vulnerability to natural disasters. In 2010, the country was devastated by a 7.0 magnitude earthquake that claimed the lives of nearly 250,000 and displaced 1.5 million Haitians. Matthew, a category 4 hurricane, struck the island in 2015. The disaster claimed the lives of hundreds, displaced thousands and created a humanitarian crisis for over a million residents. The provision of foreign aid in Haiti has tremendously restored much of the damage incurred from these disasters. It has also been crucial in creating momentum in the nation’s development. The following are the five primary sectors in which Haiti has invested the $172.5M it has received in foreign aid from the United States.

Political Infrastructure and Democracy

Given its history of political instability, one of Haiti’s primary focuses is developing its democratic system and providing the means to facilitate the exchange of ideas between its government and constituents. To this end, programs have been instituted to improve the rule of law and the preservation of human rights, as well as investments in infrastructure, which provide mediums for constituents to interact with their political ecosystem. This comes in the form of developing media platforms and the formation of advocacy and interest groups. The country is currently in the midst of political gridlock, so the investments being made toward its democratic development are essential for Haiti’s development.

Economic Development

Like many developing countries, Haiti depends heavily on agriculture for economic output. To this end, the agriculture sector receives much of the aid allocated to economic development. Even with half of the Haitian workforce being employed in the agricultural sector, there is still a shortage of output. As nearly 60% of the country’s food supply has to be imported, there is still much room for development in this sector. Moreover, much of the remaining budgetary allocation that goes toward economic development is invested in infrastructure. This is absolutely essential in facilitating economic activity. This comes in the form of electric power lines and networks, gas stations, airports, railways, and more.

Administrative Costs

Every program instituted to carry out the functions necessary to assist in these developments requires manpower and infrastructure. Thus, it is paramount that a sizable percentage of Haiti’s foreign aid goes to this sector. This is the price of business in a developing country. Any given program or project requires personnel who need to be trained, housed and compensated. Furthermore, the housing programs require funding to compensate the contractors who build them and the cost of executing varying tasks. This expenditure can often be overlooked, but it is vital to development. Aside from the funding necessary to establish these programs, those who oversee these expenditures and evaluate the performance of the instituted programs receive aid compensation.

Humanitarian Efforts

The two natural disasters of the last decade have caused major developmental setbacks and internally displaced persons. Therefore, much of the foreign aid in Haiti goes into natural disaster readiness and the expenses involved in supporting those who have lost everything. It is through foreign aid that Haiti was able to house the 1.5M displaced individuals temporarily in the aftermath of the 2010 earthquake and again with the 188,000 displaced after hurricane Matthew in 2015. In 2020, this aid has helped Haiti battle not only with the health imperatives implicated by COVID-19, but in managing the increasing costs of its food imports. As a result of the pandemic, the global market put a premium on international trade, further straining Haiti’s budget.

Health Issues

Haiti puts the majority of its foreign aid towards health issues. These can include reproductive health, safe water supply, maternal and child health and now mitigating the spread of COVID-19. This investment of foreign aid has led to notable improvements in the state of these issues. An increase from 5% to 20% occurred in women being discharged with a long term contraceptive in place.

Additionally, access to potable water has increased from 43% to 59% in 2016 and there is an ongoing installation of proper sanitation facilities throughout the country. There has also been an increased effort to educate residents on the dangers of poor sanitation. The most pressing health issue that Haiti currently faces is the battle against HIV/AIDS; thus it demands the greatest allocation of aid invested in this sector. Roughly 160,000 Haitian residents live with this disease, and its spread is on the rise. However, through investments made in testing and treatment throughout the country, the progression of the rise in deaths and infections is slowing. Since 2010, deaths have decreased by 45% and the number of new cases per annum has changed from 8,800 to 7,300.

Haiti is a country where political turmoil, a struggling economy, food insecurity and considerable setbacks on all these fronts. Moreover, the results of natural disasters cause achieving a developed status to be difficult. However, foreign aid has played an essential role in Haiti’s recovery and in assisting in creating development momentum.

Christian Montemayor
Photo: Flickr

Foreign Aid to Sudan A fractured economy, political protests and the transition to a democratic country are factors that have put Sudan in the global spotlight. Due to shortages within the country and the added weight of COVID-19, Sudan is on track to receive much-needed financial aid from several global sources. Foreign aid to Sudan will provide direct relief to the impoverished people in the country.

Improved Foreign Relations

In February 2020, Sudan’s ex-president, Omar al-Bashir was prosecuted and convicted for the mass murders of people in the region of Darfur. The declaration was made that the country would cooperate with the ICC (International Criminal Court) for the prosecution. This act could serve as a window of opportunity for improved foreign relations and a new international image. There have also been talks of peace agreements between Sudan and Israel. These issues have attracted a global audience as the world watches to see where things could potentially lead to.

Democracy and Debt

One of the country’s most monumental feats was transitioning to democracy after many years of social discord and oppressive power. Unfortunately, this massive change also came with a damaged political system and an outstanding debt of nearly $60 billion. Necessities such as food and fuel have undergone an extreme rise in price at an 80% estimate and the introduction of COVID-19 could be the potential last straw for Sudan’s already overburdened economy. While Sudan’s army chief of staff, Lt. Gen. Abdal Fatteh al-Burhan, is a member of the Sovereign Council, the relationship between the country’s government and the military is rocky. The prime minister, Abdalla Hamdock, is desperately trying to avoid a potential military takeover and is calling for any available financial support from allies abroad.

Sudan’s Call for Help

Sudan’s call for help had reached many different listening ears. In a joint effort, the World Bank, the European Union and several other countries signed a deal of almost $190 million that would go directly to families in need through the Sudan Family Support Programme (SFSP). The amount of foreign aid to Sudan would equal out to 500 Sudanese pounds (roughly $9) per person, per month for one year and aims to cover the needs of nearly 80% of Sudan citizens. Prime minister Hamdock noted that while willing donors have given $1.8 billion to help, the country is really in need of $8 billion for a real balance to its economy. The distribution of the aid was set to begin in October 2020 and will eventually total $1.9 billion after two years.

The Road Ahead

With the degree of social and political change in Sudan, the country is certainly moving in a positive direction. Reinventing the country’s image and political structure is no easy feat. Sudan has proven that change is certainly possible, even in the most dire circumstances, especially with sufficient international backing and support. Foreign aid to Sudan gives the people of the country hope for a better future.

– Brandon Baham
Photo: Flickr

Foreign Aid in MozambiqueThe provision of foreign aid from the United States serves as a multifaceted solution and preventative measure to many issues that ultimately impact the United States. In assisting with the development of under-resourced countries and those afflicted by natural disasters and conflict, the country’s interest in strengthening U.S. eminence in the global political ecosystem is served, as is the initiative to foster and stabilize democracies that are essential in maintaining global peace. Mozambique is one such country that receives aid from the United States. Nearly half of the population lives in poverty and while having managed to combat that statistic with an annual decrease of 1%, the country continues to see rising levels of inequality. USAID’s 2019 assistance investment in Mozambique totaled $288 million. Foreign aid in Mozambique is being used in several key developmental areas.

Developing Education

A significant portion of U.S. foreign aid has been invested in providing basic education. This foreign aid in Mozambique has been applied in conjunction with the country’s national budgetary allocation of 15% for basic education. This initiative has led to improved access to education with the abolishment of enrollment fees, an investment in free textbooks, direct funding to schools and the construction of classrooms. With access to education improving, Mozambique now moves to focus on developing the quality of education it provides and extending the initiative of improving access to those who are in the early learning stage. Only 5% of children between the ages of 3 and 5 have access to such services. Moving forward, educational initiatives aim to focus on the improvement of teacher training, the retention of students (as only 8% continue onto secondary level) and optimizing the management and monitoring of education nationally.

Addressing Humanitarian Needs

A large part of foreign aid in Mozambique has been committed to battling humanitarian crises. Cabo Delgado is the northernmost province of the country and is experiencing an insurgency that is decimating its infrastructure and food security. As a result, there is an ongoing displacement of the population. In November 2020 alone, more than 14,300 displaced people arrived in the provincial capital Pemba. The World Food Programme estimates the cost of feeding internally displaced people in northern Mozambique to be at approximately $4.7 million per month, aside from the housing costs and the complexity of managing the crisis amid a global pandemic. This allocation of the country’s foreign aid will be vital in maintaining the wellbeing of people during the conflict and restoring the country’s infrastructure once the insurgency has subdued.

Improving the Health Sector

The bulk of foreign aid in Mozambique goes toward the many challenges the country faces with regard to health issues such as funding family planning, battling tuberculosis, maternal and child health as well as water and sanitation. More than $120 million goes toward this initiative but the most pressing of the issues is mitigating the HIV/AIDS epidemic. In 2014, Mozambique ranked eighth globally for HIV cases. With the support, antiretroviral therapy and testing has expanded, which is evidenced by more than a 40% drop in new cases since 2004. Additionally, with a sharp increase in the treatment of pregnant women who carry the virus, one study recorded a 73% drop in cases among newborns between 2011 and 2014. The executive director of UNAIDS, Michel Sidibe, has claimed that the epidemic could be completely eradicated by 2030 if such a rate of progress continues.

The developmental progress in Mozambique is reflective of the substantial impact that foreign aid has on developing countries. As U.S. foreign aid to developing countries continues, the hope is for other well-positioned countries to follow suit.

– Christian Montemayor
Photo: Flickr

Sweden's Foreign AidMany countries allocate a portion of their gross national income (GNI) to foreign aid. However, few countries rival Sweden’s foreign aid. Sweden has a reputation as a generous country in the international community; it gives generous donations to struggling countries for a variety of reasons. The three nations that Sweden provides the most aid to are Tanzania, Afghanistan and Mozambique. Additionally, Sweden distributes its aid to many areas within these three countries. This article highlights Sweden’s efforts to help these impoverished countries.

Tanzania

Tanzania and Sweden have been partners for over half a century. The relationship between the two nations started back in 1963. Since then, Sweden has achieved multiple substantial successes in Tanzania. For example, Sweden has helped deliver electricity to about 20% of the newly powered areas since 2006. Sweden also provided financial assistance to one million small businesses. In this case, over 50% of those beneficiaries were women or young people. Additionally, in 2013, Sweden provided Tanzania with $123 million in official development assistance (ODA). It also provided $103 million in 2015.

According to the website Sweden Abroad, Sweden’s foreign aid in Tanzania is intended to help the country achieve sustainable growth and to give impoverished people opportunities to care for themselves, either by providing them with employment or by starting small businesses. Looking to the future, Sweden will decrease their aid as poverty decreases in Tanzania.

Afghanistan

Afghanistan has also received a tremendous amount of support from Sweden’s foreign aid. One of the core focuses of Swedish aid in Afghanistan is in promoting gender equality for women. Unfortunately, literacy among women in Afghanistan is around 18%. Sweden has worked hard to reduce that statistic. Thankfully, Sweden has increased the number of women attending school. In 2001, one million women attended school in Afghanistan. By 2016, there were 8.2 million children in school, 40% of whom were girls. Sweden has increased the number of girls in school, in part, through the implementation of schools run by the Swedish Committee for Afghanistan. Currently, these schools teach about 70,000 Afghan children. Of that number, 62% are girls.

Sweden has also made strides in protecting women from violence. The Swedish International Development Cooperation Agency, U.N. Women and Women for Afghanistan Women have teamed up to ensure the protection of Afghan women. These agencies have established refuges within 20 provinces of Afghanistan. These refuges offer services including legal assistance and guidance following gender-based violence.

Mozambique

Similar to Tanzania, Mozambique has received Sweden’s foreign aid for many years; Swedish aid to Tanzania started during the 1970s. Sweden has aided Mozambique in many ways, including by preventing child marriages, promoting gender equality and renovating hydroelectric plants. The Pungwe Programme is one specific example of Sweden’s aid in Mozambique. This program takes care of the Pungwe River. Over one million people use the Pungwe River, including Mozambicans in addition to some Zimbabweans.

Hopefully, other countries will follow Sweden’s example and increase their investments in the global community. Sweden’s work in Tanzania, Afghanistan and Mozambique is commendable; however, it will take more aid to bring developing countries into the modern era.

– Jacob E. Lee
Photo: Flickr

Australia's Foreign Aid Initiatives Amid the COVID-19 PandemicAmid the COVID-19 pandemic, Australia continues its foreign aid efforts, especially with investments in sustainability and infrastructure. This demonstrates Australia’s deep commitment to altruistic sustainable solutions. The total Australian development assistance was still four billion AUD (Australian dollar) in the 2019-2020 year, even though the nation is in the depths of its first recession in 29 years and is affected by the global pandemic. This four billion AUD makes up 0.21% of Australia’s total budget as seen in recent years, highlighting foreign aid as a prerogative for Australia despite economic shortcomings, including budget cuts and a global pandemic.

The Pacific

Australia’s foreign aid used $1.4 billion to finance developmental assistance in the Pacific. There are significant infrastructure needs in the region, so developmental assistance includes infrastructure. The Australian Infrastructure Financing Facility in the Pacific became operational on July 1, 2020. This funding supports efforts such as roads, buildings and power. Australia’s foreign aid works with governments and institutions on education and health programs in the region. This was done in recognition of the notable infrastructure needs in the region and the important role infrastructure plays in sanctioning growth. This demonstrates the depth of Australia’s commitment to the growth and development of the Pacific region.

The Australian Infrastructure Financing Facility for the Pacific aims to transform Australia’s international assistance and be a pillar of sustainable, principles-backed foundational investments in the Pacific and the nation of Timor-Leste. It permits Australia to work directly with partner governments, and also the private sector, to manage essential infrastructure gaps while unsustainable debt is avoided. This highlights Australia’s commitment to sustainability.

Australia’s foreign aid budget poured $500 million into financing infrastructure in the Pacific since 2017. The amount of $450 million went to humanitarian and protracted crises, which saves lives, alleviates suffering and strengthens human dignity.

The Coral Sea Cable System

From 2017-2020, the foreign aid budget spent up to $200 million on improving access to the internet, dubbed the “Coral Sea Cable System”, in the Solomon Islands and Papua New Guinea. This has many beneficial aspects, such as improved access to resources for rural populations.

In 2019-2020, Australia’s foreign aid budget also spent $145 million contributing to strong, inclusive and sustainable economic growth in Indonesia. Australia’s aid to Indonesia is important because about 26.42 million Indonesians live in poverty, and roughly 5.5 to 8 million Indonesians are estimated to have fallen into poverty due to COVID-19. According to the World Bank’s Human Capital Index, the next generation of Indonesian citizens would be 54% as productive as they could have been if they had a complete education or full health. Therefore, Australia’s foreign aid is very important at this time.

Labor mobility describes how easy it is to move from one occupation to another. Countries like Papua New Guinea, Solomon Islands and Vanuatu face challenges such as a large percentage of their population living in remote regions. Thus, these populations have low labor mobility. Expanding labor mobility is necessary for the future of these regions.

Conclusion

Despite being in the middle of a recession and amid a global pandemic, Australia was able to give four billion AUD, or 0.21% of its total budget, in developmental assistance toward the Pacific region, especially investing in sustainability and infrastructure. The Australian Infrastructure Financing Facility in the Pacific aims to be sustainable, functional investments by allowing Australia to work directly with partner governments to manage infrastructure gaps while avoiding unsustainable debt. Since 2017, Australia has invested $500 million into infrastructure in the Pacific.

– Madi Drayna
Photo: Flickr

Wheat to SudanSudan’s position on the list of states that sponsor terrorism restricted their trades, imports and economy. However, with the recent removal, Sudan has already reaped the benefits of foreign aid from the United States. USAID approved a $20 million payment to the World Food Programme to provide a massive 65,000 metric ton shipment of wheat to Sudan.

Diplomacy Opens Doors

The $20 million shipment of wheat to Sudan is part of an $81 million commitment from the U.S. to help Sudan fight poverty and hunger. This contribution will bring its total aid for the fiscal year to over $400 million, making the U.S. the largest aid sponsor to Sudan.

Sudan’s removal from the list of states sponsoring terrorism was contingent on Sudan’s recognition of Israel as a nation.  After such recognition, Israel also sent a $5 million wheat shipment to Sudan.

Economic Lockdown Compounds Hunger Crisis

While Sudan has found recent diplomatic success, its plight as a nation remains dire. Nearly half of Sudanese people are in poverty, with 46% living under the poverty line as of 2018.

Roughly nine million people will need food assistance in 2020, up by 9% from 2019, as widespread poverty has been worsened by the effect of COVID-19 on the economy.

Further stress on already limited food resources comes from droughts, floods and conflict that has displaced nearly two million people, compounded with hosting one million refugees who need food assistance.

The rampant poverty in Sudan has led to extreme numbers of children suffering from hunger and malnutrition across the nation. The number of children facing emergency food insecurity levels doubled over the last year to 1.1 million. According to Save the Children’s country director in Sudan, Arshad Malik, “120 children are dying every day due to malnutrition.”  Overall, 9.6 million individuals in Sudan are food insecure as a result of lockdown restrictions, a weak economy, natural disasters and conflict.

USAID Contributes to Disaster Relief

Although the weak economy has waned further from job losses and food prices soaring from economic restrictions, food aid remains the first priority for Sudan and USAID. Additionally, Sudan has suffered from its worst floods in 100 years, which has caused massive destruction due to vast underdevelopment. USAID granted another $60 million in aid for Sudan to recover from flooding and fight waterborne diseases that can spread during floods.

Foreign Aid Essential to Development

Sudan’s new democracy undoubtedly faces short and long-term obstacles with regard to the country’s development and stability. Natural disasters, economic woes, poverty and hunger, cripple an already struggling nation. The shipment of wheat to Sudan from USAID is crucial for helping the people of Sudan meet their daily needs and alleviating hunger and poverty. Extending the olive branch of foreign aid creates interdependence between nations and encourages peace and prosperity. Bringing nations such as Sudan out of poverty creates a more secure, just and prosperous world.

– Adrian Rufo
Photo: Flickr

Sweden’s Feminist Foreign PolicySweden, one of the Nordic countries known for its economic stability, high education rates and social mobility, has also been serving as a prime example of humanitarian-focused foreign policy. The Scandinavian nation has not participated in a single war since 1814 and is currently running one of the world’s most revolutionary foreign policies. Sweden’s feminist foreign policy is the first of its kind.

Sweden’s Feminist Foreign Policy

With regard to foreign policy, minority groups and underrepresented populations are often unintentionally overlooked. Sweden’s foreign policy, on the other hand, takes a modern approach, becoming the first country in the world to launch a feminist foreign policy in 2014. Sweden has a feminist government and the approach was inspired by years of efforts to promote gender equality and focuses and take heed of the voices rarely heard in the distant wars and conflicts.

Sweden’s feminist foreign policy is based on the justification that lasting peace, security and development cannot be achieved if half the world’s population is excluded. The policy is a response to the discrimination and systematic subordination that endless women and girls face daily, all over the world. By taking this approach, the Swedish government hopes to change the way the world perceives the structure of international relations in today’s globalized world.

Sweden’s International Aid

Sweden is one of the only nations that has surpassed the goal of giving 0.7% of its GNI to foreign aid and has been providing around 1% consistently since 2008. Prior to COVID-19, the developmental aid from Sweden had been mainly directed to Afghanistan, Somalia, Mozambique, Tanzania and Uganda.

What is Sida?

Sweden’s foreign policy is dedicated to helping nations worldwide accomplish the Sustainable Development Goals (SDGs). The aid provided and how it is utilized depends on the needs of each nation and the nation’s SDG standing. Sida is a Swedish government agency that works globally to fight for the improvement of SDGs in every nation and creates long-term projects that aim to do so. Strategies and policies for each country that Sweden aids are selected in accordance with each country’s needs, ensuring that foreign aid is personalized and effective.

A leader in Foreign Policy

For more than a decade, Sweden has been acting as a leader of humanitarian international relations and is now one of three nations running a feminist foreign policy. The country ensures in its every step that its actions on foreign grounds and the aid provided have positive long-term influences, rather than acting as a momentary band-aid. This type of foreign policy is an inspiring example of what is needed to achieve the SDGs by 2030 and fight global poverty, hunger and inequality worldwide.

– Anna Synakh
Photo: Flickr

Transforming Education in South SudanAround 1.8 million children in South Sudan are not in school; the majority of children are utilized for manual work to provide for their families. This prevents millions of children, especially young girls, from receiving an adequate education. As the world’s youngest country, South Sudan struggles with many pressing issues, such as an unstable political environment and scarce food access. However, the need for educational reform grows increasingly urgent every day. These inadequate educational circumstances can be attributed to many years of war that left behind devastating conditions for the country and its civilians. However, organizations have committed to transforming education in South Sudan.

The Humanitarian Aid Relief Trust (HART)

Founded in 2004, HART exists to help countries suffering from national conflicts that are not typically served by major aid organizations. A significant amount of its aid is directed toward South Sudan and the country’s unfavorable education status. In its 2020 report, the organization emphasized how many leaders in South Sudan are unable to access funds from large-scale donors. In response to this, the organization stresses that donating funds for essential services in South Sudan should take top priority, especially education funds, considering the substantial number of children displaced from normal learning environments. The organization works directly with partners in South Sudan to get problems solved through direct communication. 

According to HART, a girl raised in South Sudan is more likely to die from pregnancy or childbirth than complete her primary education. More than two million children are not in school, which is the worst number the country has seen yet. If these rates continue, the future generation of South Sudan will not be equipped with the skills that come from an educational background, which also statistically places them as more likely to fall into generational poverty. Organizations such as HART use advocacy as the strongest tool. By bringing light to these startling statistics, it hopes to educate the public on the dire need to allocate funds to South Sudan and reform the educational system through donations.

United Nations Children’s Fund (UNICEF)

UNICEF has been a global leader in transforming education in South Sudan, as it provides funds for classroom materials and teacher training. A primary focus is to intervene in South Sudanese communities to emphasize the importance of educating their children. The organization understands that when children are educated, it benefits not only them but the entirety of the country.

However, learning in South Sudan has been extremely different since the start of COVID-19 as roughly 1.5 million children have been learning through radio lessons instead of the traditional classrooms. In 2020 alone, UNICEF provided over 40,000 radio sets to be distributed to underprivileged children who do not have access to radios in their homes. Amid these unconventional education times, UNICEF continues to deliver essential services to benefit learning in remote locations under the Government of South Sudan’s “Back to School Initiative”. At the end of 2020, UNICEF plans to have provided 729,000 out of school children in crisis access to education.

Global Partnership for Education (GPE)

The Global Partnership for Education has been partnered with South Sudan since 2012. It emphasizes the high demands placed on the education system in South Sudan’s national plans. The General Education Strategic Plan (GESP), developed by the Ministry of General Education and Instruction of South Sudan, lays out situation analyses, policy frameworks, implementation structures and financing plans. However, there is insufficient public expenditure to cover these projects. In fact, South Sudan possesses one of the lowest education funds in the world. 

The GPE recognizes this need for funding and believes in the vision of The General Education Strategic Plan. In March of 2020, the GPE gifted $7 million in support of the Ministry of Education’s learning plan in response to COVID-19. In particular, the grant goes to support guidelines and policies in place to reopen schools in South Sudan. Other focal points revolve around awareness campaigns on COVID-19 prevention, remote learning materials for students, radio programs for at-home learning, hygiene facilities and back to school campaigns. As the GPE continues backing The General Education Strategic Plan, there is an expected expansion of secondary and technical education and institutionalizing teacher training within the next three years. 

The Need for Improved Education

Right now, over 80% of the South Sudanese population live on less than a dollar per day. In the middle of a humanitarian crisis, many basic necessities fail to be met for this vulnerable population. An increasing urgency around transforming education in South Sudan has caused an abundance of organizations to take a special interest in reforming the education system in the world’s youngest country. While the road to a prospering education system is still long, South Sudan is taking substantial steps toward a better future for its children with the help of humanitarian organizations.

– Hope Shourd
Photo: Flickr

PEPFAROne of the most effective programs in the fight against AIDS is the U.S. President’s Emergency Plan for AIDS Relief, or PEPFAR. The program was first authorized by Congress in May 2003. It initially started as a way to help the people of Africa, where the AIDS epidemic was most concentrated. Now, PEPFAR has international and domestic programs that fight AIDS in over 50 countries.

Poverty and HIV

The prevalence of HIV/AIDS is widely recognized to correlate with impoverished rural and urban areas. Poverty is not a necessary condition for contracting HIV. However, it can be related to risky sexual behaviors, such as participation in sex at a young age and prostitution. Poverty can also lead to inadequate sexual education or resources that would assist in preventing AIDS.

The underlying factors in poor areas that increase the risk of AIDS —  violence, social mobility, economic strain and access to education — need to be addressed. Tackling risk factors as a method of prevention has already proven to be largely successful in fighting AIDS internationally. Further, that approach has helped families simultaneously fight sources of intergenerational poverty.

PEPFAR

When President George W. Bush announced PEPFAR at the State of the Union, he said of the program: “seldom has history offered a greater opportunity to do so much for so many… And to meet a severe and urgent crisis abroad, tonight I propose the Emergency Plan for AIDS Relief, a work of mercy beyond all current international efforts to help the people of Africa. This comprehensive plan will prevent seven million new AIDS infections, treat at least two million people with life-extending drugs and provide humane care for millions of people suffering from AIDS and for children orphaned by AIDS.”

Today, PEPFAR has far exceeded its once lofty goals. The program has provided over 18 million people with HIV treatments and helpful services, like cervical screenings and education programs. To celebrate its incredible success, PEPFAR launched a new website in July 2020. It provides a timeline of scientific discoveries, legislation and social outreaches pivotal in the worldwide fight against AIDS.

Starting in 1981, the timeline explores the first known cases of AIDS in the U.S. and Africa. It moves on to facts about school education about AIDS and global programs like the World Health Organization’s Global Program on Aids (1987). A few tabs later, it relates the explosion of Congressional funding and legislation for PEPFAR and allied programs circa 2006 all the way to present day, 2020.

Additionally noted are milestones, such as PEPFAR’s 10th anniversary marking one million HIV-free babies born due to PEPFAR programs. This corresponds to the increased financial investment by the U.S., which proves the initiative’s substantial success.

Continued Efforts

PEPFAR is not satisfied with resting on its existing laurels, however. The same month PEPFAR released its celebratory website, PEPFAR also announced its latest report and upcoming budget. The new budget doubles funding for its HIV program that helps adolescent girls and young women to $400 million.

The program has so far helped over 1.5 million women and girls in only six months in 2019 and decreased HIV cases in that demographic by 25% since 2014. The new budget additionally increases PEPFAR’s cervical screening program, Go Further, by 70%. Together these effective programs are only a small piece of PEPFAR’s astonishing $85 billion total investment over the past 17 years of its existence.

Elizabeth Broderick
Photo: Flickr

African AgribusinessesOn November 30, 2020, USAID announced a joint operation with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute $30 million to Aceli Africa to help bridge the financing gap experienced by many African agribusinesses. The grant is estimated to have a tremendous impact and will unlock $700 million in financing for up to 750 African agribusinesses in Tanzania, Kenya, Rwanda and Uganda.

Agri-SMEs Lack Financing

Much of Aceli Africa’s work focuses on a data-driven approach to incentivizing financial institutions to provide loans for small and medium-sized African agribusinesses or “agri-SMEs”, as Aceli Africa calls them.

According to Aceli Africa’s research, agri-SMEs represent a golden opportunity to solve hunger and poverty throughout Africa and help fulfill key U.N. Sustainable Development Goals (SDGs), such as gender equality and climate action.

This is because smallholder farmers consist of both men and women and provide direct access to food sources that are responsibly raised in accordance with the needs of the local environment. Furthermore, the expansion of the agricultural sector in Africa is two to three times more effective in eliminating poverty than growth in any other sector.

Despite the great potential of African smallholder farms, banks are largely unwilling to loan them much-needed financing to power additional growth. Banks do not have the risk appetite for small farms in Africa due to price volatility, the seasonality of farming, pest invasions and a weak regulatory environment.

The result of this is an investment shortfall of $65 billion per year for agri-SMEs in Africa. Initiatives focused on microfinancing do not provide enough financial injection for agri-SMEs, which are larger than the microenterprises that are the usual recipients of microloans. Agri-SMEs are thus left out of financing. However, the work of Aceli Africa aims to change these circumstances.

Aceli Africa Incentivizes Banks to Loan to Agri-SMEs

To bridge this gap in financing, Aceli Africa partners with numerous organizations such as USAID, the IKEA Foundation, Feed the Future and the International Growth Center to incentivize banks to loan and provide technical assistance to agri-SMEs.

This is where the aforementioned $30 million contribution has the potential to positively impact agriculture and African agribusinesses. One of the incentive programs that Aceli Africa employs is to cover the losses of the first loan that a financial institution gives to an African agri-SME.

This works by depositing 2-8% of the loan’s value in a reserve account that the lender can access when losses are experienced. This boosts risk appetite among lenders and makes banks and other institutions more willing to invest in agri-SMEs in Africa.

Aceli Africa also provides technical assistance for financial management for African agri-SMEs through online tools and other in-person approaches to help smallholder farmers optimize growth using the loans they receive. These approaches have the potential to put U.S. taxpayer dollars to effective use by addressing poverty and hunger abroad.

United States Outreach is Key in Combatting Poverty

USAID’s decision to partner with the Swiss Agency for Development and Cooperation and the IKEA Foundation to contribute to the work of Aceli Africa symbolizes the value and power of international partnership in the fight against global poverty. When the United States decides to lead on an issue, the rest of the world follows. Key international partnerships are essential for the United States to take the lead and garner international support to address key global issues.

– John Andrikos
Photo: Flickr