USAID Impact Photo Credit: USAID and Partners

Archives for Economic Growth

Measuring the Impact of Sports on Youth Development

USAID’s Office of Development Partners (ODP) and the Bureau for Economic Growth, Agriculture, and Trade (EGAT) sponsored a panel discussion on “Measuring the Impact of Sports on Youth Development” on Tuesday, March 1st.   Over 125 guests and staff heard from NGO leadership who work with sports as a platform for youth development and spoke on the evaluation techniques for measuring the impact of these programs.

“This was a great opportunity for USAID staff and our external stakeholders to discuss how sports impacts the work we do in development,” said Mori Taheripour, Senior Alliance Officer in PSA/ODP, who organized the event. “Our panelists offered perspectives that show not only the impact of the work on the communities that they serve but also helped bridge the gap between observed impact and evidence-based outcomes that continue to challenge this industry.”

The panelists included Paul Teeple from Partners of the Americas: A Ganar Alliance; Maria Bobenreith, of Women Win; Kirk Friederich of Grassroot Soccer; and Brendan Tuohey of Peace Players International. PeacePlayers International and A Ganar are both USAID-funded programs.

Moderated by Kenneth Shropshire, of the Wharton Sports Business Initiative, the panel highlighted the ability for sports to serve as a powerful platform for youth development.  USAID currently operates youth programs in over forty countries around the world and over 280 sports-based programs.

Sports-based youth programs have been used to address a variety of development issues, and the diversity of panelists highlighted represented the unique ability of sport, as a platform for development, to address a broad range of sectors including peace and conflict, gender inequality, health, education and economic development.

Panelists discussed how they use evaluation tools and the challenges that they face in seeking data-driven and rigorous evaluation methodology.  They shared a variety of anecdotal examples that truly capture the essence and “magic” of their work, but continue in many ways to struggle with balancing anecdotal and hard data, not wanting to lose the intangible, less obvious impact of their work.  The discussion explored several issues related to evaluating the impact of sports activities including: how to measure impact over the long-term; how to measure return on investment; and several methods, including the use of interviews to obtain meaningful, unbiased responses. Panelists identified the need to develop better tools for capturing the impact of sports on youth development and noted that USAID could play an important, convening role in this area.

USAID’s Youth Advisor, Erin Mazursky mentioned that the event was the kick-off of a series of youth-focused activities and events that will roll out over the next couple of months. “Focusing on youth is a priority for the agency,” she said.  “The recent events in the Middle East have shown that youth have proven that they are not just the next generation of change-makers, but a generation that is right now very much affecting the course of history.”

Fruit and Faith

Senior Advisor Ari Alexander is in Ghana and highlights one of his field visits to a farm program.

Hello from Ghana where I had the privilege yesterday to observe the fruits of a great development success story in the Eastern Region of Ghana. A faith-based organization conceived, proposed, designed, and implemented a project to introduce fruit trees to smallholder farmers as a path to economic growth and sustainability. USAID through the use of PL480 Title II Food Aid resources supported this concept from 1997 until 2006.  Visiting with these orange and mango farmers five years after USAID’s support ended, the success of our cooperative investment is self-evident. The farmers now sustain themselves and contribute largely to Ghana’s economy.

The Adventist Development Relief Agency (ADRA) brought me to the farms in Somanya, Sikaben, and Akyem Sekyere where, originally, 1-3 acre plots were allotted to 5,424 different farmers in the region. Fourteen years after this program started, these farmers have organized into associations and are selling their fruit to local processing plants. Many of the farmers have expanded to dozens of acres.

Senior Advisor for NGO Partnerships and Global Engagement Ari Alexander meets with Mrs. Grace Mensah, a mango farmer on the ADRA site visit. Photo Credit: Joshua Umahi

The families have become frontline actors in a story of economic growth. More young people are finding farming an attractive possibility for a financially secure future.

I had the opportunity to hear testimonies of a village chief, a member of parliament who accompanied me, and ordinary farmers – men and women- about the transformative work led by ADRA with USAID’s support. The relationships developed and the trust built over many years enabled us to effectively connect smallholder farmers with local small businesses to complete the value chain.

Too often these stories are hidden under the fruit trees. The next time you’re in France, the UK, the Netherlands or Italy (or Ghana!) I urge you to try the fresh pineapple ginger juice from the farmers and factories of Ghana.

If you have found similar success stories, please share them with us at fbci(at)usaid.gov

Ari Alexander is Director for the Center for Faith-based & Community Initiatives and the Senior Advisor of NGO Partnerships and Global Engagement at USAID

USAID Shows Youth the Benefits of Conserving Energy

Saving energy is key to any country’s solid economic future and to its future as an independent country.  Teaching this generation of youth to take ownership over energy-saving best practices proves paramount in ensuring Ukraine’s sustainable energy future. Ukraine’s dependence on imports from Russia for most of its energy supply makes energy conservation especially important. In the country, where 70 percent of heat from the apartment buildings escapes through windows, walls doors and bad heating systems, USAID believes that that every Ukrainian can contribute to saving heat by taking just small steps toward reducing their energy footprint.

USAID’s Municipal Heating Reform project, together with the Ministry of Housing and Communal Services and Ukrainian celebrities, announced the Energy Efficiency Season to make energy efficiency fashionable and inspire Ukrainian youth to demonstrate responsible attitudes toward energy consumption.

Throughout the course of the Energy Efficiency Season campaign, four gala-concerts and TV programs (all incorporating the word “teplo” or “heat” in Ukrainian): Teplo Fashion, Teplo Feng Shui, Teplo City and Teplo Ukraine will feature tips on how to get warm and keep warm with simple and low-cost energy saving measures. The events will promote heating efficiency through fashion events and give celebrities a platform from which they can share ideas on energy conservation drawing from their personal experience.

Ukrainian singer Alyosha, who represented Ukraine at the 2010 Eurovision Song Contest, explains why she decided to join USAID’s Energy Efficiency Season campaign. Photo Credit: USAID Municipal Heating Project

Sarah Wines, the USAID Acting Mission Director, observed, “If each of us begins to make small changes in our lives, we will all contribute to saving energy. And if each of us tells our friends, our parents, our brothers and sisters that they too can make a difference by just changing their habits, we will help this country achieve energy independence and make it a leader in the world and in Europe on how to live in a new era of lower energy consumption and clean energy.”]

According to Olga Romanyuk, the Deputy Minister of Housing and Communal Services, decreasing Ukraine’s dependency on imported fuel is a key task for the Ukrainian Government.  She said that this can only be achieved by implementing energy saving technologies and educating the youth on how to conserve energy.

Microfinance Empowers Entrepreneurs in Tanzania

In a packed and conversation-filled room in northern Tanzania, the wheels of microfinance are spinning – quietly and efficiently, yet furiously. Every week, this group of people owning and running small businesses worth less than $700 comes together in Arusha to make payments on microloans received from Promotion of Rural Initiatives and Development Enterprises Limited (PRIDE), a Tanzanian microfinance institution. Each also deposits earnings into a savings account, in fulfillment of the requirement that borrowers incrementally strengthen their financial position. The U.S. Agency for International Development (USAID), through a 75% bond guarantee, has helped PRIDE maintain and increase microcredit activities.

Microfinance Empowers Entrepreneurs in Tanzania Photo credit: Gregg Rapaport/USAID

When called to the front of the room, borrowers push a small pile of well-worn Tanzanian bills across a table toward three employees. The first counts the money, the second makes a notation or two on a printed spreadsheet, and the third slides change back across the table. These transactions, happening one after another, are banal to watch but breathtaking to consider. This is innovative thinking – applied to small lending – at work. Entrepreneurial but poor Tanzanians, who are shut out of traditional sources of credit, are being empowered (through microcredit loans up to $650) to realize all manner of small business dreams, and lift themselves and their families out of poverty.

In Tanzania, most land is untitled and there is no legal framework allowing “movable assets,” such as livestock, to be used as collateral for accessing loans. Typical bank loan models simply do not work here, but in microfinance…collateral is not necessary. PRIDE counts on good-faith and social cohesion for repayment by making group loans that involve 50 people. Group members work out the specific allocation of funds themselves and are responsible individually and jointly for paying the loan back.  This multi-borrower structure values each entrepreneur’s success, incentivizing more successful entrepreneurs to assist struggling peers, and the intra-group transparency promotes fiscal responsibility by each group member, ensuring high levels of repayment.

How well does it work? In Tanzania, 99% of all PRIDE microloans are repaid.

Martha Mpinga is a Tanzanian entrepreneur who purchases small amounts of African textiles from wholesalers and sells them to retail buyers for a profit. “I started with a loan of 50,000 Tanzanian shillings (approximately $35),” she explains. Once the original was repaid, she qualified for a higher microfinance loan. Martha has repeated this cycle several times as her business expanded. “My loans grew…and now I have a loan of 1 million shillings (approximately $650).” At this loan level, sufficient inventory is maintained and it drives a sustainable business. She pulls richly-patterned wax print cloths, used by local woman to make clothing, from her bag and delivers a convincing sales pitch about their high quality and other decorative uses for such beautiful fabric. The Arusha branch manager, who is standing nearby, ribs Martha that she could avoid next week’s trip to the branch by making a second microloan payment today, using the proceeds from this just completed sale. They laugh, both knowing that the regular repayment meetings which bring Martha together with 49 other entrepreneurs, is essential to the microfinance model.

In November 2010, USAID provided its first guarantee for a microfinance bond issued in sub-Saharan Africa. With USAID’s support, PRIDE secured 15.3-billion Tanzanian shillings ($10 million) from the Tanzanian capital markets.  As a result, access to credit will no longer be just a dream for an estimated 10,000 additional Tanzanian entrepreneurs.

Afghan Partnership Opens Modern Carpet Processing Facility

By: Robert Sauers, USAID Afghanistan.
Originally posted in DipNote the U.S. Department of State Official Blog

Afghan carpet seller

Afghan carpet seller watches pedestrians as he waits for customers in Kabul. October 21, 2007. AP File

The Paiman Atlas Group celebrated the opening of its new modernized carpet processing facility yesterday in Dasht-e Barchi, Kabul. Supported by a public-private partnership facilitated by USAID’s Afghanistan Small and Medium Enterprise Development (ASMED) project, Paiman can now produce up to 100 square meters of carpet per day, a 120 percent increase from its previous capacity.

With revenues of more than $150 million in 2009, carpets are Afghanistan’s leading export. However, the current lack of large-scale processing facilities in Afghanistan results in more than 80 percent of Afghan carpets being shipped to Pakistan for finishing. These carpets are then exported with “Made in Pakistan” labels, resulting in a loss of opportunity for Afghans to capture the full value of their products. With the new machinery, Paiman’s processing complex will enable Afghan carpet producers and traders to export their products directly under the “Made in Afghanistan” label.

Paiman is a partnership of six Afghan carpet producers and exporters whose vision is to create domestic processing and finishing services for Afghan carpets. The new carpet finishing complex will help Paiman export Afghan carpets directly through Turkey to U.S. and European Union customers and will encourage other Afghan producers and exporters to explore direct export opportunities.

Speaking at the event, Deputy Minister of Commerce Ailaqi remarked that Afghanistan’s “carpet industry is the outcome of hard work, creativity and art of Afghans with endless dedication and a rich history that creates jobs for more than two million men and women. It is a great source of income for people and for the country.” Paiman Chief Executive Officer Hasmatullah Haidar, and representatives from the Afghanistan Investment Support Agency, Export Promotion Agency of Afghanistan, Afghanistan Chamber of Commerce and Industry, and the Afghan Carpet Exports Guild also attended the opening celebration.

Through its ASMED project, USAID seeks to improve private sector productivity and increase employment opportunities in Afghanistan. The project encourages the development of Afghan businesses through support for capacity building, technology transfer, and investment, including public-private partnerships.

Embracing Innovation in Haiti: USAID’s Haiti Mobile Money Initiative

One of the hallmarks of the U.S. Government’s fresh approach to development in Haiti is making better use of innovative private sector ideas to solve tough development challenges.

So when one third of Haiti’s bank branches were destroyed in the earthquake a year ago, we looked for ways to overcome one of the primary obstacles to economic growth in the country: poor access to affordable financial services.  But instead of building more banks or installing ATMs, the U.S. Agency for International Development partnered with the Bill and Melinda Gates Foundation to set up a $10 million incentive fund to jump start the provision of banking services to Haitians through their mobile phones.

Maarten Boute, CEO of Digicel Haiti (left), is joined at the podium by Scotia Bank’s Maxime Charles. Photo Credit: Kendra Helmer/USAID

In the short term, the Haitian Mobile Money Initiative will enable Haitians, 40% of whom own a mobile phone, to communicate, send, receive and store money on their devices.

The Government of Haiti and the private sector have enthusiastically embraced the mobile money initiative. The Central Bank of Haiti has already issued new directives on mobile banking.  And yesterday, USAID and the Gates Foundation awarded Digicel $2.5 million for being the first telecommunications company to develop a competitive mobile money service in Haiti.

The project has already significantly increased the number of Haitians with access to banking services, and it has the potential to provide universal access thanks to the increasing penetration of cell phones in the country. By helping Haiti leapfrog the limits of the physical infrastructure of banking, mobile banking is putting financial power literally into Haitian hands.

Click here to view photos of the press event.

Micro Entrepreneurs, Big Dreams

In most ways, Khanum Bibi is an ordinary Punjabi wife in Lahore, Pakistan—the country’s second largest metropolitan area. Married 25 years, she and her husband Nisar have raised a son and five daughters in a small village on the outskirts of the city relying on his income as a day laborer and her work making and embellishing ladies garments with beads at home.

One of Bibi’s daughters at work embellishing a shalwar. Photo Credit: USAID/Pakistan

The family squeaked by until hard times struck last year. In the heart of an economic downturn, Nisar was injured in a street accident and could no longer work. Trapped economically, the couple agreed that Bibi should take the unusual step of venturing out of the house and proposed to her neighbors to sell the garments together to get better deals from market vendors.

At just the right moment a USAID program offered to train her on product design and development, use of raw materials, market demand, and pricing arrangements. The next month, Bibi left her daughters to work at home and became a sales agent – an entrepreneur.

“I have had a difficult life,” Bibi said, wiping a tear with her headscarf. “But I feel a tremendous responsibility for my family since my husband’s injury. My becoming a sales agent has improved our condition, and also my confidence. Now that I have this opportunity, I want to maximize it.”

This USAID program will increase the incomes of at least 120,000 micro entrepreneurs like Bibi by developing the capabilities of indigenous organizations and local private and public sector partners working with micro entrepreneurs and small enterprises to significantly build their businesses.

As for Bibi, she consults with her husband Nihar on all important business decisions, and maintains her established role in the family setting as she breaks down some of Pakistan’s social barriers and rigid social traditions.

“My husband didn’t give me the right to work,” Bibi said. “I earned it. Today we make joint decisions, and the people in our village understand. USAID has given me new ideas and approaches I never would have considered.”

The 16 Days Campaign to End Violence Against Women: From 25 November to 10 December, USAID will post a blog each day that aims to prove a single point: The human race cannot progress when half of the world population lives without the same rights and respect afforded to its male counterpart. If you are moved by what you read and want to share, we’ve made it easy for you. Click here to find out how.

USAID Surpasses Private Sector Credit Milestone

USAID’s Development Credit Authority recently surpassed a $2 billion milestone of private sector credit mobilized in developing countries. USAID uses partial loan guarantees to encourage local banks to invest locally in sectors ranging from health to clean energy to infrastructure.

Workers sort rubble in Port-au-Prince, Haiti, on August 6, 2010. Photo source: Kendra Helmer/USAID

The two billionth dollar was made available from a new partnership with two banks in Haiti for small and medium businesses. Since Haiti’s devastating earthquake, established businesses lost most, if not all, of their property and equipment. Without these assets, small and medium enterprises no longer have the collateral needed to obtain loans to rebuild their businesses. The DCA guarantee will substitute as collateral for borrowers, enabling two local banks to lend up to $20 million of their funds to help businesses rebuild.

Follow USAID’s Development Credit Authority on Twitter and on Facebook.

USAID in the News

The Minneapolis Star Tribune published an article on Dean Atwood, who was a top USAID administrator during President Clinton’s administration, and his new position as chairman of the Organization for Economic Cooperation and Development’s Development Assistance Committee.

The Washington Post’s Career Coach wrote about how many different backgrounds and skills can be utilized through employment at USAID.

 

From the Field

In Mali, we will hold a launch ceremony for a new Maternal and Newborn Health collaboration framework.  Mali has been selected as one of the countries for the implementation of the joint Organisation of The Islamic Conference (OIC)-US Government ”Reaching Every Mother and Baby in the OIC with Emergency Care” strategy. USAID has been designated to lead this effort for the US Government.

In Egypt, we will celebrate forty-five new scholarships for young Egyptian students to obtain degrees from Egyptian private universities in fields of studies that are important to Egypt’s current and future development. The Leadership Opportunities Transforming University Students (LOTUS) program aims at identifying and empowering young women and men who have demonstrated academic excellence, leadership and involvement in their communities.  The program will help develop and nurture the recipients’ leadership potentials, skills and commitment to community and country so that they are prepared to become future leaders and advocates for development in local communities.

In Tanzania, it is Swahili Fashion Week.  On the last day of fashion week, USAID/COMPETE (East Africa Competitiveness and Trade Expansion Program) will organize a merchandising workshop to provide an element of training/guidance for what it takes to go commercial, and what the global market is looking for.

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