News / Africa

Businesses Look for Profit in US Development Aid

Obama encourages private companies to help spur economic growth

A partnership including the U.S. government, TechnoServe, and Cargill helped transform the poultry industry in Mozambique.
A partnership including the U.S. government, TechnoServe, and Cargill helped transform the poultry industry in Mozambique.

Multimedia

Audio

Private businesses are being encouraged to assume a greater role in development efforts as part of the Obama administration's agricultural development initiative.

Food prices are at record highs, and experts are sounding alarms about the potential for civil unrest. The Obama administration has made improving developing world food security an important foreign policy goal.

But rather than relying solely on governments and civil society groups as in the past, the administration is highlighting the role the profit motive can play in economic development.

Mozambique's poultry boom

At a recent congressional briefing, the growth of Mozambique's poultry industry was cited as one example.

Until recently, domestic poultry farmers were unable to compete with imports.

Mozambican poultry farmer Derek Xavier says part of the reason was the way farmers raised their birds.

"We just used to have them at home," he says. "We had no medication, no vaccination. And obviously, with no good treatment, the chickens are always thin, and no good meat."

It did not help that foreign producers were using Mozambique as a market of last resort to dump nearly spoiled chicken.

Industry overhaul

That all started to change in 2005. An industry transformation began with help from the U.S. government, the business-focused development group TechnoServe, and the U.S. agribusiness giant, Cargill.  

Mozambican farmers were organized. Vaccination, education, and disease monitoring programs were developed. Trade regulations were changed to prevent import dumping.

The overhaus brought about dramatic changes, according to Florencia Cipriano, chief veterinarian for the Mozambique government. She told the briefing that in 2005, domestic producers raised only a third of the broiler chickens sold.

"Today," she said, "Mozambique broilers outnumber imports three to one."

Feeding all those chickens has also spurred a roughly four-fold growth in the domestic feed grain industry, she says. Cipriano credits the chicken boom with creating about 90,000 jobs, and helping tens of thousands of small farmers improve their incomes.

Business meets development aid

"We want to work more with the private sector than we have in the past," said Gregory Gottlieb, head of the food security bureau at the U.S. Agency for International Development. "This time around, I think we want to look more at economic growth. Real economic growth."

Gottlieb told the briefing that real economic growth comes from focusing on the profit motive for everyone from farmers and their suppliers to retailers who sell their products, and the partnership with Cargill and TechnoServe is a good example.

Profit is the reason Cargill gets involved in development, says the company's director of international business relations, Devry Boughner.

"That's not a bad thing in our mind," she says. "Because as we make profits in these countries and invest overseas, we're able to re-invest and re-partner and re-up our commitment to global food security."

Aid budget cuts loom

But the Obama administration's commitment to global food security faces a challenge as lawmakers consider the next federal budget. The administration dramatically increased funding for agricultural development with a three-point-five billion dollar initiative known as "Feed the Future."

But with U.S. unemployment at 9 percent and a $14 trillion national debt, Republicans took over the House of Representatives this fall pledging to cut federal spending.

"Moral arguments aside, we must stop sending hundreds of billions of dollars to foreign governments when our own economy is in shambles," says Texas Congressman Ron Paul.

Paul is widely considered to be outside the political mainstream on most issues.  But a recent Gallup poll found nearly 60 percent of Americans favor cutting foreign aid.

Business case for aid

At the congressional briefing, Cargill's Devry Boughner  made the business case that aid is in the company's and the country's long-term interest. Look at South Korea, she said. It took time, but development aid turned that country into an economic powerhouse and a market for U.S. goods.

"We're now looking to take this relationship to stronger commercial ties, which will translate to stronger economic growth here in the United States," she added.

A big free trade agreement with South Korea is currently before the Senate that backers say will create jobs in the U.S. In the long run, Boughner says, when private businesses can help transform industries, as Cargill helped to do in Mozambique, aid can become trade and provide a valuable return on investments.

You May Like

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Video US Landmark Pushes Endangered Species

People gathered in streets, on rooftops in Manhattan to see image highlights that covered 33 floors of Empire State Building More

World’s Widest Suspension Bridge Being Built Over Bosphorus

Once built, Yavuz Sultan Selim Bridge will span 2 kilometers with about 1.5 kilometers over water, and will be longest suspension bridge in world carrying rail system More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs