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U.S. Reps Advocate for Foreign Aid to Armenia

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In the wake of President Obama’s 2014 foreign aid budget announcement, Congressional Armenian Caucus Co-Chairmen Frank Pallone (D-N.J.) and Michael Grimm (R-N.Y.), along with twenty other members of Congress, spoke out on behalf for continuing foreign aid to several Middle Eastern countries. Their proposal included sending monetary aid to Armenia, Nagorno-Karabagh, Javajhj, and Christian American refugee camps in the Middle East.

These congressmen sent a letter to the House Appropriations Subcommittee on State-Foreign Operations requesting an aid budget for Armenia and the other previously mentioned countries. Chairwoman Kay Granger (R-Texas) and Ranking Democrat Nita Lowey (D-N.Y.) drafted the letter together and hope that the bipartisan group can persuade the subcommittee to carry out their requests.

The letter asked that Congress approve a foreign aid budget that would provide:

– $5 million in U.S. humanitarian and developmental aid to Nagorno-Karabagh.

– At least 10% of U.S. assistance to Georgia to be earmarked for job creation programs in the Samtskhe-Javakheti region of that country.

– At least $50 million in U.S. economic aid to Armenia.

– Funds for humanitarian and resettlement assistance specifically targeted to Armenian and other Christian populations as well as other minority communities affected by the recent unrest in the Middle East.

– Language strengthening Section 907 restrictions on U.S. aid to Azerbaijan.

– Removal of barriers to contact and communication with representatives of the Nagorno Karabagh Republic.

–Language calling for the participation of Karabagh leaders in the OSCE Minsk Group negotiations.

Congressmen Pallone and Grimm are concerned that Obama’s plan to give $24,719,000 in Economic Support Funds for Armenia will not be sufficient funds to fully aid the country. This budget is significantly less than last year’s $40 million budget. The Armenian government has requested $50 million in aid for 2014, an amount that is unlikely to be granted. Advocates of Armenian and Middle Eastern foreign aid are working diligently to ensure that funds for this region are increased before Congress passes the 2014 foreign aid budget.

– Mary Penn

Source: Armenian Weekly
Photo: Guardian

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Human Rights a Priority for World Bank

Human Rights a Priority for World BankIndependent United Nations experts are advising the World Bank to include human rights standards in their criteria for giving loans and all other interactions with developing countries. The World Bank will hold a review in the upcoming months to discuss its social policies and is expected to adopt international human rights standards.

When the World Bank does not consider the human rights of a specific country before investing, the organization risks unintentionally hurting the extremely poor in that country. This happens because some development ends up benefiting the wealthy people while the poor suffer. For example, poor farmers may lose their land, and therefore livelihood, in order to build new housing structures that have been sanctioned by the World Bank.

The group advocating for human rights standards in the World Bank includes representatives for the Special Rapporteur (and its sub-groups on extreme poverty and human rights, rights of indigenous peoples, and rights to food) and the Independent Expert on foreign debt and human rights.

As such, the World Bank can expect to hear arguments from this group urging them to consider issues like “disability, gender, labor, land tenure, and the rights of indigenous people” in the meeting. These suggestions will also be open for public comment. The goal of adding human rights criteria to World Bank standards is to ensure that the poor benefit development as well as wealthy people.

The World Bank will update its “safeguard policies,” its social and environmental policies, to make sure that the voices of the poor are not overpowered by the wealthy. This review, which will analyze the activities of the World Bank for the past two years, is a huge opportunity for the organization to begin to reach out to the world’s poorest.

– Mary Penn

Source: India Blooms
Photo: The Foundry

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China: A Model for Ending Poverty

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It is predicted that by 2015 China will decrease the number of its citizens living in poverty by 50 million. Other developing countries are taking note of China’s success and, with the help of foreign investment, hope to employ the same methods. With its growing economy and monetary assistance, China is, by example, taking a leading role in foreign aid and assisting the developing world.

China’s representative for the World Food Programme, Brett Rierson, explains how China used a bottom-up method of alleviating poverty. The Chinese government focused on aiding poor farmers by implementing policies that permitted farmers to keep a higher percentage of their profits and allocating foreign investment and technology to small villages. Investment in infrastructure, as well as improving nutrition education, women’s health, and agriculture production, are also factors responsible for China’s success story.

A majority of China’s aid goes to countries in Asia and Africa. These developing countries can mimic China’s strategy by investing in infrastructure and farming communities. Deborah Brautigam, director of the international development program at Johns Hopkins University in Baltimore, reminds us that it was China’s decision to invest in agriculture that helped reduce poverty, not just foreign assistance. African countries have the potential to lift themselves out of poverty, but it depends on how they invest the money they received from foreign aid.

China formerly received foreign aid from Western countries and is now ready to begin investing in other developing countries. With China’s help, the United Nations is on track to reaching the Millennium Development Goal of ending extreme poverty by 2030.

-Mary Penn
Source: SCMP
Photo: The Guardian

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Foreign Aid Creates Jobs in the US

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There are many disputing ideas on whether or not America should continue to invest in foreign aid, especially while in the throes of an economic recession. While spending US funds to support countries and people that most citizens will probably never visit or meet may seem counter-intuitive, foreign aid will be a factor in pulling America out of its recession. Lifting developing countries out of poverty creates more customers to buy American products, which in turn creates jobs in America.

Foreign aid job creation is not merely speculation. Currently almost half of US exports go to developing countries and this number can be expected to increase as these new, developing markets continue to open. This will greatly improve the US economy since one in five American jobs, like cell phone chips and food production, are export-based. American businesses recognize the opportunity to grow by alleviating world poverty. In 2012, over 50 US corporations delivered a letter to Congress in support of continuing funding for foreign investment. These corporations included Google, Cisco, Coca Cola, Johnson & Johnson and Caterpillar.

These corporations are aware of the huge potential payoffs of foreign investment. For example, the US has given Mexico $1.7 billion in aid over the past 45 years and now exports $16.3 billion in goods to their neighbor every year. The US has also seen its investment in Brazil offer an enormous return. America exports $35.4 billion annually to Brazil after giving $2.8 billion in aid from 1960-2005. Given that a majority of the United States’ top trading partners had previously accepted aid from the US, it is obvious that foreign aid is a good investment.

Foreign aid does not have to be strictly a question of moral obligation; it is also financially and developmentally smart. Many Congressmen are now referring to foreign aid as investment for this very reason. It may take many years until US citizens see the financial benefits of foreign investments but the eventually, revenues from these new markets will be well worth the wait. Foreign aid is less than 1% of United States’ budget and has the potential to create jobs to bring the US out of rough economic times. Contact your Congressional representatives and ask them to support funding for foreign aid.

– Mary Penn

Source: Orange County Register
Photo: Soda Head

A Solution to Global Poverty: Mobile Money

A Solution to Global Poverty: Mobile MoneyKenya has recently gained attention for its successful adaption of mobile money. A majority of its population, two-thirds of which live on less than $2 a day, are able to manage their finances using cell phones. Through this service, which does not require a bank account, millions of customers are able to send a text message to banks to pay bills, receive payment, and transfer money. Given that nearly 2.5 million people in the world do not have bank accounts and 2 billion people have cell phones, the program will make it easy to include a large number of people previously without access to finance management. As of now, there are 15 million mobile money customers in Kenya.

The impact of mobile money on people living in developing economies is vast. They now can boast financial independence, control of their funds, and the ability to assist family members and friends with ease. Mobile money can also improve financial security and local economic activity for small, low-income villages.  Most importantly, this is all available with the convenience and simplicity of a cell phone.

Safaricom developed the mobile money service in Kenya in 2007 and named it M-Pesa. Since then, many other companies have been eager to join the mobile sensation. However, despite the success seen in Kenya, mobile money providers have not been able to reproduce its effects in other countries like Afghanistan and Zambia. Many other factors contribute to mobile money besides technology. One reason why the Kenyan program has been so successful is due to its regulatory policies. The Kenyan government employs flexible regulatory rules after the innovative process occurs in order to ensure protection for customers and service providers.

Before this phenomenon, those living in poverty had little access to financial services. There are now 150 money mobile services throughout the world, which means that every day more and more impoverished people are able to benefit from mobile money. Little by little, one village at a time, we can hope to see improving economies in developing countries thanks to this innovative money service.

– Mary Penn
Source: Brookings
Photo:Business Daily Africa