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This is an archived USAID document retained on this web site as a matter of public record.

THE PILLARS

In this section:
Loan Guarantee Project Stimulates Business Growth in Ethiopia
Alliance Works in Ghana, Niger, and Mali to Build Wells, Latrines
Health Teams Fight Serious Polio Outbreak on Three Continents
Congress Approves $25 Million to Fight Avian Flu in Asia


ECONOMIC GROWTH, AGRICULTURE, AND TRADE

Loan Guarantee Project Stimulates Business Growth in Ethiopia

Photo of Ethiopian women weighing green beans.

Women weigh freshly picked green beans that will be exported to Europe. The farmers are among 155 participating in a vegetable cooperative in Ziway, Ethiopia.


Sandra Kalscheur, USAID/Ethiopia

ADDIS ABABA, Ethiopia—Until two years ago, groups of coffee and grain farmers in this populous country could not access credit, which meant that they often lacked working capital and could rarely invest in new machinery or other improvements.

That has changed since a Development Credit Authority (DCA) project began working with Abyssinia Bank and Awash International Bank.

From September 2004 to March 2005, Abyssinia Bank lent more than $2.2 million to 12 cooperative unions. During the same period, Awash lent $520,000 to one cooperative union and an agroprocessor.

Maximum loans through the DCA—a mechanism that allows USAID to cover 50 percent of a loan in case of default—are $750,000.

Short-term loans for up to a year are given for marketing activities in coffee; food grains; fruits and vegetables; livestock; and livestock products such as meat, milk, hides, and skins. Five-year loans are available for capital investments in six regions.

USAID/Ethiopia is currently developing a DCA program with a third bank to give loans to small and medium-sized businesses working in areas other than the four agricultural subsectors (textiles and garments, leather and leather products, tourism, and rural service providers), said John McMahon of the mission’s economic growth team.

“Banks here tend to do collateral-based lending, which means that if you want a dollar, you have to put up three dollars as collateral, rather than saying, ‘Is this a viable business plan? What are the potential risks and rates of return?’” McMahon said. “So it becomes a burden for cooperatives and businesses to come up with collateral.”

“What we are doing now is getting the banks to recognize that they are missing out on business opportunities. So they are now lending to agroprocessors and cooperatives, and we are getting them to reduce collateral requirements and increase loan periods,” said McMahon.

USAID works with agroprocessors and cooperatives in business management, and helps them draw up business plans that show the viability of their enterprises.

At the same time, the Agency works with banks so that they consider the viability of a business rather than basing lending decisions on the amount of collateral.

“If we are going to achieve rural economic growth, we’ve got to get funding out into the rural areas for both operations credit and investment credit,” McMahon said.

Giving loans to cooperatives ensures that at harvest time they can purchase lots of grain from individual farmers. Cooperatives can sell some of the product right away and store the rest for later, when they can fetch higher prices for the grain.

“If they get a higher price, a dividend is distributed to farmers,” McMahon said. “It’s really about getting the small farmer linked to the market so that he or she can get a better price for his or her product.”

Members of some 332 cooperatives—or about 390,335 households—benefited from the DCA program last year.


GLOBAL DEVELOPMENT ALLIANCE

Alliance Works in Ghana, Niger, and Mali to Build Wells, Latrines

Photo of two girls at a tap in Ghana.

Ruth Takyiwa Sunkwa, 6, stands with her hand under her village’s new water tap with her sister, Rebecca Agyeiwa. The water tap is the result of World Vision’s Kasei Water Project. Last year, World Vision, a USAID partner, helped install a water system in three guineaworm-stricken villages in Ghana.


Karen Homer, World Vision

The West Africa Water Initiative (WAWI), created over three years ago, has brought clean water, improved sanitation, changed hygiene behavior, and improved water resources management to hundreds of rural communities in Ghana, Mali, and Niger.

Worldwide, nearly 1.2 billion people lack clean drinking water and 2.4 billion lack adequate sanitation.

Some 1.3 million children under 5 died from diarrheal diseases caused by unsafe water and sanitation in 2000 alone. Large percentages of these victims are in Africa, the world’s poorest continent.

WAWI, a seven-year, $42 million project, was founded by the Conrad N. Hilton Foundation, and has received $6 million in support from several USAID offices, including the Office of Women in Development; the Global Development Alliance; the Bureau for Economic Growth, Agriculture, and Trade; and the Bureau of Global Health.

Since its launch, the program’s 13 partners have been drilling wells, installing pumps, constructing latrines, teaching sanitation and hygiene, supporting small-scale agriculture and income-generating activities, and promoting sustainable natural resources management in the three poor West African countries.

World Vision, an international Christian relief and development organization, started the precursor to WAWI through the USAID-supported Ghana Rural Water Project in the 1980s.

“The expansion from Ghana to Mali and Niger was envisioned by the Hilton Foundation and its WAWI partners as a part of an ongoing effort to combat preventable water-related diseases, such as diarrhea, guinea worm, and trachoma,” said Richard Stearns, president of World Vision.

WaterAid, an NGO, is also working in two WAWI countries, Mali and Ghana. Its work in Mali, for instance, is helping to bring water and sanitation services to low-income settlements near the city of Bamako. The group is constructing 50 standpipe connections, 1,500 household latrines, and waste pits. It also runs awareness campaigns to encourage improved hygiene behavior.

“Where there is no clean water and sanitation, millions of children die each year, and millions of people become blind unnecessarily and suffer debilitating diseases,” said Steven Hilton, president of the Conrad N. Hilton Foundation, which has committed $18 million over seven years to WAWI.

Examples of other WAWI work include:

  • UNICEF, which is providing school-based sanitation and hygiene promotion as well as developing community water sources

  • Desert Research Institute, based in Nevada, which is training technicians in the science of locating water and analyzing hydrogeologic data and water quality

  • Cornell University’s International Institute for Food, Agriculture, and Development, which is conducting environmental conservation and land use planning programs as well as performing research

  • Winrock International, which is developing market gardening projects with innovative irrigation technologies to raise incomes while managing water resources

  • The World Chlorine Council, which is donating PVC pipe for community wells and also supporting communication efforts of the initiative


GLOBAL HEALTH

Health Teams Fight Serious Polio Outbreak on Three Continents

Photo of Yemeni child receiving oral polio vaccine.

A child receives an oral polio vaccination in Yemen. Some 5 million children under 5 recently received the treatment, as polio has spread through the Middle East, Africa, and now Asia.


USAID/Yemen

Polio, a disease virtually eradicated around the world, reemerged in Africa last year and has now spread to 16 previously polio-free countries in the Middle East and Asia.

Indonesia detected its first case of polio in April. By early July, there were 111 cases; in Yemen, about 300 cases were reported.

Yemen had not detected a case since 1996, and Indonesia had been polio free for a decade. Plans are now underway for immunization campaigns in both countries.

Polio most frequently afflicts children, causing muscular weakness and paralysis.

USAID and international and local health professionals in the affected countries are beefing up surveillance programs and starting massive immunization programs.

Genetic analysis by the World Health Organization (WHO) indicates that the virus originated in West Africa, and is similar to the virus that caused a polio outbreak in Nigeria in 2003 and 2004. Further analysis suggests the virus travelled to Indonesia through Sudan, and is similar to recently isolated viruses in Saudi Arabia and Yemen.

“We are all disheartened by the outbreak in Africa and the spread of polio to so many countries this year,” said USAID Global Polio Eradication Coordinator Ellyn Ogden. “But great strides have been made to turn the situation around. Let’s hope that this is the last outbreak—the last gasps—of a virus struggling to hang on.”

Increased surveillance is underway in Indonesia, the fourth largest country in the world, after identification of the nation’s first case in West Java province April 21.

Since 1998, the Agency has funded Indonesia’s disease surveillance system, which was critical in detecting the first outbreak there in a decade, Ogden said.

USAID-funded surveillance officers conducted an outbreak investigation with the WHO following detection of the first polio case in Indonesia. The investigation confirmed an additional eight cases in neighboring villages during a three-week period.

With the WHO and the Indonesian Ministry of Health, the Agency also conducted an immediate outbreak response campaign, immunizing children under 5 in the province of West Java, where the virus broke out. The agencies also confirmed that the strain was imported from Africa, previously identified in Nigeria.

A followup campaign to vaccinate several million children across West Java, Banten, and Jakarta, is planned through the end of June.

USAID has contributed $200,000 for these campaigns, on top of the $500,000 already spent on surveillance in Indonesia.

Immunization campaigns were conducted in 23 West and Central African countries in February and March last year, targeting more than 80 million children and costing an additional $100 million.

USAID contributed $27.4 million for polio eradication in 2004. In the Near East and Asia, 200 million children will be immunized in repeated national campaigns between now and the end of the year.

USAID will provide $32 million for polio eradication activities this year, in addition to $100 million provided by the U.S. government through the Centers for Disease Control and Prevention.


DEMOCRACY, CONFLICT, AND HUMANITARIAN ASSISTANCE

Congress Approves $25 Million to Fight Avian Flu in Asia

Photo of poultry market in Hanoi.

A market in Hanoi, Vietnam, with chickens, geese, doves, and rabbits. Close proximity of animals and humans contributes to the spread of diseases such as avian influenza. As of May 19, 76 of 97 reported cases of avian influenza in humans have occurred in Vietnam.


Mark Simmerman, Centers for Disease Control and Prevention

Millions of dollars in aid recently approved by Congress will augment USAID’s work to prevent and control the spread of avian influenza, or bird flu, throughout Asia.

On April 11 President Bush signed an emergency bill allocating $25 million to fight the disease. USAID will use $10 million and work with the U.S. Department of Health and Human Services (HHS) on managing the remaining $15 million.

Through the Office of U.S. Foreign Disaster Assistance (OFDA), the Agency has pre-positioned some 10,000 sets of personal protective equipment—such as specialized suits, gloves, boots, masks, and eye protection—in Cambodia, Thailand, Laos, Vietnam, and Indonesia, countries that are considered at most risk of bird flu infection. The equipment can be used by healthcare personnel and agricultural workers to minimize exposure to the virus. This action was taken as a precaution in the event of a travel embargo that could result from an outbreak.

USAID has also provided funds to the World Health Organization to organize regional coordination meetings. The Agency has also begun developing a plan of action with HHS and the U.S. Department of Agriculture for surveillance and a possible pandemic response.

Bird flu is a relatively new disease affecting humans and animals. Since mid-December 2003, 10 Asian countries have reported outbreaks of the virus in poultry, including chickens and ducks.

The virus is highly contagious, and is particularly lethal to domesticated birds. Thousands of birds have died of the virus. More birds have been culled as a measure to control the spread of avian influenza, and trade embargoes have been put in place.

Bird flu has also affected humans. As of May 19, the illness has killed 53 of 97 infected victims in Vietnam, Cambodia, and Thailand.

“The presence of human cases and the continual mutation of the virus have raised concerns that the current situation could lead to a pandemic if the virus develops the ability to spread efficiently from human to human,” said Samuel Levy of OFDA. “The three influenza pandemics in the previous century each killed 2 million to 50 million people worldwide.”

With the supplemental money coming in, the U.S. government is outlining three objectives in its fight against the bird flu:

  • improving surveillance capacity of countries to detect the disease in humans and animals

  • strengthening the capacity of countries to respond to outbreaks in humans and animals

  • planning pandemic preparedness

In addition to the $10 million in the emergency appropriations bill, the bureaus for Global Health and Asia and the Near East and OFDA spent about $1.25 million on bird flu preparedness and response activities.

An Avian Influenza Working Group was created in March to develop and coordinate activities.

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