View of impromptu tent city in the middle of Haiti's capital. Photo: United Nations Development Programme (flickr)

Haiti has just received another powerful blow. A powerful 7.0-magnitude earthquake rocked Haiti's capital on Tuesday, devastating a country that has seen more than its share of disasters both man-made and natural over the last few years. The news reports trickling in paint a bleak picture of almost unimaginable ruin.

I was privileged to witness some amazing progress in this tiny country that has long carried the dubious distinction of being the poorest nation in the western hemisphere during my annual and semi-annual trips to the island nation since the election of a new president in 2006. Paved roads and bridges had begun to appear across raging rivers that kept villages isolated. In the small community of 40,000 where most of my work took me, Engineers Without Borders drilled and installed seven clean water wells that dramatically lowered the infant mortality death rate. In a community that had once had just one Cuban-trained health worker who functioned without medicine or equipment, a small staff of doctors and nurses began to provide health care. A fragile sliver of hope had begun to take root.

This earthquake has devastated a country that does not have the resources to recover on its own. Mercy Corps’s has dispatched a response team to rush critical supplies and other urgent assistance to survivors. More staffers will arrive in the coming days.

As more aid workers arrive, they will face huge challenges. Haiti's international airport has just one runway and no taxiways, so airplanes that land there have to do a U-turn at the end of the runway and taxi back to a parking space. I can imagine that right now, that one runway and the airspace around Port au Prince is busier than a Los Angeles freeway. On the ground, the Mercy Corps team may find that accommodations are sparse or non-existent. Reports indicate that even major buildings in the capital city have been heavily damaged or destroyed. Security will also be an issue. The United Nations peacekeeping forces have provided the most reliable security in the country, but they themselves have been devastated by the death and injury of key personnel. Food and safe drinking water were never abundant, but now they will be even scarcer. Over the coming weeks and months Haitians will face tremendous obstacles to recovery.

Thankfully, the professionals at Mercy Corps have seen all of this before. They have a long history of helping earthquake survivors in other countries: Peru, China, Pakistan, and Indonesia. I have no doubts about their capacity to provide the best possible support in this situation. Several people have asked how they could best help with Mercy Corps’s effort. Really, the best way anyone could help is to make a cash donation to the Mercy Corps Haiti Earthquake Fund. As a matter of policy Mercy Corps does not use volunteers or donated materials like clothing from the general public in their relief efforts.

With a combination of generous donations and Mercy Corps' tremendous professional resources we can help Haiti survive this devastating body blow and replant the small seeds of hope that I saw grow there over the past few years.

In the spirit of the season, we're challenging our readers to make a small (or large) gift to our parent organization, Mercy Corps. Mercy Corps shares Global Envision's belief in the power of global markets to alleviate poverty and employs a market-driven approach to their economic development programs around the world. We've set a symbolic goal of $575 — that's the number of posts we've published on Global Envision since the launch of the blog in April of 2008.

In that time we've written hundreds posts highlighting the economic tie-in on topics ranging from mobile banking to child brides in Yemen. We offered extensive coverage of the global economic crisis and followed how innovation in design is lowering the prices for things like drip irrigation systems, refrigerators and heart surgery in India. We've explained why big business may actually be an ally to the environment.

Please take us up on our challenge and pitch in a few bucks. Thank you for your readership, your comments and your support.

Happy holidays,

Chelsea Wieber

A Mercy Corps small business loan helped Najeeba expand her successful baby cradle business in Kabul, Afghanistan. Photo: Cassandra Nelson/Mercy Corps

Over the past decade, Mercy Corps’ microfinance services have lent more than $1.5 billion, reaching more than one million people. Twelve Microfinance Institutions (MFIs) founded and supported by Mercy Corps operate all over the world, with 270,000 active clients — 65 percent of them are women. To better serve those excluded from formal financial services, Mercy Corps is working with these MFIs to develop and offer savings, remittances, and micro-insurance services as well.

I recently sat down with Zhanna Zhakupova and Jim Anderson who were in town for a microfinance conference hosted by Mercy Corps, to find out more about Mercy Corps microfinance programs and how the global economic crisis is impacting microfinance loans. Zhanna is the Executive Director of the Asian Credit Fund (ACF), headquartered in Almaty, Kazakhstan. Jim is Mercy Corps’ Financial Services Manager and works from UlaanBaatar, the capital city of Mongolia. Together, they have experience working in countries as diverse as Uzbekistan, Vietnam, Japan, Bosnia, Poland and Afghanistan.

Haley Dillan: Jim, tell me a little bit about Mercy Corps’ use of Microfinance.

Jim Anderson: Microfinance is an integral part of what we’re [Mercy Corps] doing as an agency. Mercy Corps works with a group of well-established MFIs to complement other programming. All these MFIs provide loans to individuals and small businesses, and in Mongolia and Indonesia our MFI affiliates also offer deposits. Many support agriculture and offer consumer loans for purposes like tuition payments and health care costs. A micro-loan can range from $65 to a Guatemalan woman raising chickens or piglets, to $7,000 for a Kazakh businessperson.

Microfinance is a great tool because, when managed correctly, it is sustainable. Projects can be established and continue on a sustainable basis: they don’t require ongoing injections of donor money. As the NGO, you create the legacy, and then it often continues independantly.

Haley: Why are the majority of loans extended to women?

Jim: Typically, women are the more common borrowers. From a broad source of statistics, women are more reliable borrowers. They invest their business profits to support the family — educating, feeding, housing, and providing health care for their children. As of this June, Kompanion in Kyrgyzstan had over 91,000 clients, of whom 98 percent were women. What’s the percentage for Asian Credit Fund, Zhanna?

Zhanna Zhakupova: About 93 percent of ACF loans are to women.

Jim: Yes, and the XacBank in Mongolia has over 63,000 clients, and women comprise about 55 percent of that. However, in certain countries, it’s not always clear that just because the borrower is a woman, she’s the one in charge of the money. In Afghanistan, for example, a female borrower may just give the loan money to her husband, and it’s hard to track that.

Zhanna: Also, men are less interested in small loans. When they think about business, they think about “big.” And after the global economic crisis, group lending has grown significantly, and women dominate group lending. Men are more reluctant to join groups.

Haley: What other impacts has the global economic crisis had on microfinance? Have you changed your lending criteria? Has it affected the ability for applicants to repay their loans?

Zhanna: As I mentioned, our portfolio has shifted towards group lending since 2008. So, yes, the global economic crisis definitely caused a shift in our lending. In Kazakhstan, the crisis has been quite severe. The GDP growth was averaging about 8 percent annually since 2000, from oil and mineral resources. A pretty strong middle class had emerged, especially in the two largest cities Almaty and Astana. The economic crisis really affected this middle class; the crisis led to a sharp decline in real estate and that hit a lot of people. It seemed like everyone had loans that were secured by real estate… and when the real estate bubble burst, MFI loans were under water.

The banks stopped lending, because real estate was the key piece of collateral for most people, and it has continued to fall in value. No one had sufficient assets to meet tougher bank requirements, and so couldn’t qualify for loans after the global economic crisis. Lenders accumulated loan repayments, but refused to relend that money, sitting on it instead of pumping it back into the economy. No liquidity — no lending — no economic development — falling living standards.

In the rural areas, lending was completely frozen. When I recently visited rural areas served by ACF, every village asked us to open a branch. Small loans were in big demand but no one was lending. Now, Asian Credit Fund has about $1 million dollars in group loans, with the average loan size at around $500 per person.

Haley: What's the difference between non-profit and for-profit microlending? Does Mercy Corps work with for-profit lenders?

Jim: Actually, microlending is for-profit in most areas of the world, particularly Latin America and Central Asia. Non-profit lenders are more often located in places like India and Bangladesh. So most of Mercy Corps' microfinance work is with for-profit MFIs, many of which source funding from for-profit socially responsible investors (SRIs).

If these SRI lenders were to calculate the true risk of the loans they’re extending to MFIs, the interest rate would be so unmanageably high — possibly 60 or 70 percent in places like Tajikistan or Afghanistan. But the individuals who invest with SRIs are willing to forgo a certain amount of return because they want to encourage social improvements by lending to developing countries. As a result, SRIs can lend to MFIs at affordable interest rates.

In order to help MFIs attract capital to expand and serve more clients, Mercy Corps utilizes various sources of investment, including equity and debt, typically with SRIs.

Haley: Is there an idea or sentiment that you are taking away from the conference?

Jim: At the conference participants included a diverse group of organizations, culturally, geographically and in terms of business models, yet we all face similar challenges and issues, and it’s great that we have an opportunity to come together and talk about that.

Zhanna: Yes, everyone was talking about development, and long-term goals.

Israel's ban on the import of building materials means that very little reconstruction has taken place since the 22-day Israeli offensive at the beginning of the year. Photo: Linda Mason for Mercy Corps

For the past several years, Gaza has suffered from a humanitarian crisis that waxes and wanes in severity, but never entirely disappears. This tiny patch of land on the Mediterranean Sea has one of the highest population densities in the world with over 4,000 people per square kilometer. On top of that, it suffers from a crushing poverty rate and high unemployment numbers that mean that 85 percent of the population is dependent on humanitarian aid.

The humanitarian situation is the result of an Israeli-imposed blockade that severely limits the flow of goods and people in and out. It's a part of what Palestinians see as a collective punishment for the actions of the Hamas-led government that took control there in June 2007. Hamas has also held an Israeli soldier, Gilad Shalit, in captivity since June 2006.

Gaza's crisis intensified at the end of last December when Israel launched Operation Cast Lead, a 22-day military offensive whose stated aim was to destroy Hamas's ability to launch rockets into southern Israel, and which resulted in the deaths of 13 Israelis and more than 1,300 Palestinians. A recent, controversial United Nations report assessing the war has accused both Hamas and Israel of war crimes.

Since the end of the offensive in January 2009, Israel has allowed some goods into Gaza — such as cooking oil and basic foodstuffs — but not lifted the blockade, so the crisis' underlying causes have not been alleviated. Mercy Corps' work in Gaza focuses on providing immediate humanitarian aid, helping alleviate unemployment through cash-for-work programs, and helping traumatized Gazans deal with their psychological scars.

Isdud al Najjar, Program Director for Mercy Corps in Gaza, recently spoke with me about the situation there.

Sarah Standish: Tell us about Mercy Corps' work in Gaza. What is your role?

Isdud al Najjar: Mercy Corps has worked in Gaza since September 2005. I was the first person hired there and I've been a program manager there since February 2006. We started with small scale emergency programs there in addition to the 'Why Not?' program [connecting youth in the U.S. and Gaza], and our programs have grown a lot since that time. We now have a huge Cash-for-Work program, where we provide short-term job opportunities for vulnerable male and female households as well as for new graduates.

We also have psychosocial programs focused on helping children deal with the trauma and stress they experience, as well as humanitarian and emergency assistance programs that respond to the harsh circumstances in which Palestinians are living.

Finally, we have new youth program called Global Citizen Corps, through which we're trying to promote the full participation of boys and girls in different aspects of life in order to create a shared vision of the future.

Sarah: The Israeli siege is the main cause of the humanitarian crisis in Gaza, but it's also caused a lot of subsidiary issues like environmental degradation, unemployment, a lack of higher education opportunities, failing businesses, scarce food supplies, and more. What do you think is the worst side-effect of the siege?

Isdud: The biggest problem the siege has caused is the rampant unemployment — about half the population is unemployed — which has had a huge impact on all aspects of life — sometimes in ways that will leave a mark on people long into the future. (The New York Times examined this issue in a recent article.)

Not only has unemployment lead to higher poverty rates, it's also associated with increases in domestic violence, which can have a negative psychological impact on children and their performance in school and at work. It's also related to a rise in school drop-out rates because some parents force their children to leave the education system in order to sell small items in the street. Additionally, we're seeing women and children out on the streets begging, which is a desperate last resort because it's considered so shameful — especially since Gaza is small and dense, and many people know each other. Some also try to marry their daughters off earlier in order to relieve themselves of that financial burden. When resources are scarce, parents always give priority to their male children, so in this kind of crisis it's women and children who pay the highest price.

Sarah: Can you tell us about the under-ground tunnels between Gaza and Egypt that are used to smuggle in goods prohibited under the Israeli blockade?

Isdud: There must be at least one thousand tunnels between Gaza and Rafah [in Egypt]. These tunnels have relieved the local market somewhat, and have definitely improved the economic situation of those who run them, but the prices of the goods smuggled through them are so high that they don't alleviate the average person's situation very much. The tunnels are a Hamas business. (Global Envision also wrote about the tunnels last winter.)

Sarah: Israel destroyed much of Gaza's infrastructure during the Dec-Jan offensive. Are rebuilding efforts under-way? Are homes being rebuilt?

Isdud: The offensive damaged or destroyed schools, water treatment facilities, public buildings, and houses, but very little has been restored because of the severe shortage of building materials. Israel doesn't allow any building materials into Gaza. There's a little bit of construction material coming through the tunnels, but it's so heavy that smugglers don't like to bring much through, and it's also too expensive for the majority of Palestinians to afford.

The lack of reconstruction means that many families are either living in buildings that are in poor condition, or staying with their relatives. As a result, there's even more overcrowding in existing buildings, and families have been split up — parents often have to send a few children to live with one set of relatives, a few others to live with another set.

Gazans follow the news closely, hoping to hear good news about their situation. In particular, they want to know what will happen with the kidnapped soldier, Gilad Shalit. People think that everything bad that happened to Gaza recently was revenge for the kidnapping, and they hope that if an agreement is reached on his release, the siege will be lifted.

Sarah: How has the blockade affected daily life and Mercy Corps' programs in Gaza?

Isdud: The siege has caused severe poverty and deprivation: 80 percent of Gazans now live under the poverty line, and 70 percent live in a state of deep poverty, which means that they're unable to cover the cost of their basic needs like food, health care, and electricity. Mercy Corps provides some food assistance and non-food items like water tanks, as well as medical supplies for people with disabilities. It's difficult to determine who should receive this aid since the number of people in severe need of this assistance has increased dramatically. For example, we receive thousands of applications for our cash-for-work program, but we can only help 6000-8000 people. The challenge for us is how to successfully target the poorest of the poor.

For a period, there were also severe electricity shortages [after Israel began cutting Gaza's power supply in retaliation for Hamas's rocket attacks in October 2007] that affected Mercy Corps' ability to run its programs smoothly. Sometimes, we experienced up to ten hours of power outages at a time. We have a cash-for-work program employing women who sew school uniforms, but they couldn't use their sewing machines without power, so jobs that should have been finished in twenty days sometimes took up to a month and a half. We also employed women to bake pastries that were provided as snacks to pre-schoolers, but the same thing happened: They were unable to run their electric ovens when the electricity was cut off, just as our psychosocial programs were negatively affected when there wasn't enough light in the rooms we were using to see by. Even worse, the electricity outages also meant that buildings would run out of clean water. Luckily, Mercy Corps has a generator at our office, but it didn't always have enough power to compensate for the cuts.

There was also a period in Gaza in which there was hardly any fuel. Taxis were idle, and their drivers sat at home. People were cooking over wood fires for lack of gas. Luckily, fuel is now usually able to pass into Gaza normally, so the energy situation has improved a little.

However, the siege has also caused a severe materials scarcity that hasn't abated, so we've had to be creative and re-plan some Mercy Corps programs according to what's available to us. We had planned to help reconstruct the offices of some local NGOs and rebuild a public park, but this turned out to be impossible because of the lack of building materials. Instead, we had to focus on programs that rely more on the availability of labor than materials. For instance, we employ people to help fishermen maintain their nets, and we've started a cash-for-work program that pays unemployed laborers to work on farms; that way, the program provides some people with employment, as well as helping the farmer by providing him with free labor that keeps the farmer from pulling his children out of school to do this work.

Sarah: Tell us more about Mercy Corps' psycho-social programs.

Isdud: Our programs are designed to help children who've been negatively affected by the stress of daily life and the traumatic experiences they've undergone. The program targets moderately traumatized children along with their parents and teachers, and we deliver psycho-social guided sessions using different techniques based on professional manuals, like the CABAC [Children Affected by Armed Conflict] manual, designed to help children living in conflict zones. We try to take a comprehensive approach by giving different workshops to the teachers and parents of the kids, mainly on how to deal with depressed and traumatized children, and we tell them about the importance of providing down time for their children and encouraging them to play. The program also offers some remedial classes for children whose school performance has been affected by their psychological problems. This program has been a great help to many of the Gazan children who are suffering from this overwhelming situation.

Displaced Swat Valley citizens await food and water in a refugee camp. Photo: bbcworldservice (Flickr)

As the Pakistani Army continues to defend the Swat Valley against Taliban insurgents, some of the millions of displaced residents are beginning to return home.

NPR's Julie McCarthy and Junaid Kahn report mixed feelings from those interviewed at the sweltering Jalozai camp. Some are excited to leave, looking forward to returning home with family and friends. The sister of Shaukat Ali, to modest to give her real name, is among those elated to settle back in Swat. She has "not spent a single contented day... Life here is nothing but helplessness."

But the majority of refugees aren't quite as elated to leave the relative security of the camp for the chaotic welcome they could to receive upon returning to their villages, reports the BBC. Earlier today I spoke with Holden Basch, Mercy Corps' Emergency Response leader in Pakistan, who reported that that in Buner, a district in the Northwest Frontier Province of Pakistan, police officers and government officials aren't back to work yet.

Others aren't leaving until they receive their $300 check, a government stipend promised to all camp residents. Akhtar Muhammad is among those waiting for the money. He told NPR reporters that "If the government hasn't given us the resources here where the situation is normal, how can I expect them to give it to us in the middle of that confusion back home?"

The future of these refugees is still unknown — the Taliban that are reportedly still in hiding in the Swat are unhappy with the families who fled the area. According to the BBC, security outside of the central city of Mingora is uncertain, with potential for guerrilla attacks by the Taliban. But for some, home is preferable to cramped quarters, extreme heat, and limited food at the refugee camp, and so those who are ready board buses for an uncertain home in Swat Valley.

A Mercy Corps beneficiaries show off their garden in Niger. Photo: Jeremy Barnicle/Mercy Corps

Last week the UN announced that the number of people suffering from hunger now totals one billion worldwide.

Not too surprisingly, a BBC article points out that the vast majority of the world's hungry live in developing countries. Only 15 million are in the developed world. In contrast, 265 million live in sub-Saharan Africa and more than two times as many — 642 million to be exact — live in the Asia-Pacific region.

Since the economic crisis hit, there are about 100 million more people that are hungry. The UN attributes this rise in world hunger to unemployment and low wages. This is turn hurts people's ability to buy and grow food.

Jacques Diouf, the director general of the UNFAO, focused on agricultural investment as one of the solutions to help developing countries address hunger issues. Diouf is quoted by the BBC as saying, "Investment in agriculture must be increased because for the majority of poor countries a healthy agricultural sector is essential to overcome poverty and hunger and is a pre-requisite for overall economic growth."

At a time when need has never been greater, Mercy Corps has been able to expand our capacity to address hunger in the communities where we work.

By the summer of 2008, the price of rice had increased five times from the average price in 2005. Photo: Thatcher Cook for Mercy Corps

The following post is from One Table, a Mercy Corps campaign to fight world hunger by investing in the world's women.

Today almost a billion people worldwide are unable to buy or grow enough food to avoid malnutrition. That's 120 million more than were hungry in 2006.

What happened? Basically, the world saw dramatic spikes in food prices. But there were many underlying causes of what's known as the global food crisis:

• Drought and other climate-related problems that resulted in smaller harvests
• Changing diets — rise of the middle class in India and China and an increased demand for food, especially meat, which requires large amounts of grain to raise
• Diversion of crops from food production to the production of biofuels
• High fuel prices during 2008 — if it costs more to transport food, prices go up
• Declining investments in agricultural productivity — total agriculture development aid to poor countries plunged from $8 billion in 1984 to $3.4 billion in 2004. At the same time, the developing world's cities have been ballooning with people who do not grow any of their food
• Export bans and restrictions last year in several major grain-producing countries like China as governments sought to lower food prices for their own citizens, with the result of reducing the global supply on hand.

While food prices have come down from their highs of 2008, they remain substantially above historic levels. Many economists feel this trend, which most severely affects those who can least afford it, is likely to continue for some time.

The economic, health and societal costs of the global food crisis have been severe. One of the first things Mercy Corps did to figure out how and where to direct our efforts was to survey the communities where we work. We discovered that within communities Mercy Corps serves, roughly 70 percent of income is spent on food, and 80 percent of the population had been affected by rising food prices over the past year. The survey also confirmed something we already suspected: that families were coping with higher prices by eating fewer meals, selling off household belongings, going into debt and removing children from school so that they can work.

In addition to being a record year for food prices, it's also been a record year for our food security team, allowing Mercy Corps to aggressively respond to this crisis. We now have 17 programs in 13 countries designed specifically to respond to this on-going problem. Through support from donors including USAID, the Bill & Melinda Gates Foundation, the Gap Foundation, the Hunger Site, and private individuals, our Food Crisis Response employs a strategy designed to ensure that the groundwork for increased prosperity in the future is laid — even while addressing the immediate problem of accessing sufficient food.

Food distributions, much of which are specifically targeted to improve child nutrition, are taking place in Tajikistan, Kyrgyzstan and Zimbabwe. Meanwhile, in the Central African Republic, India, Indonesia, Liberia, Nepal, Niger, Somalia, Sri Lanka, Uganda and again Zimbabwe, Mercy Corps is helping hungry households to access food by providing employment opportunities, agricultural training and inputs (such as seeds and tools), and helping people establish and grow small businesses.

Combined, these programs are reaching almost 1.5 million individuals who have been directly impacted by higher food prices. Overall, Mercy Corps’ Crisis Response will lead to a sustainable increase in income for these people, leading in turn to greater food security over the long-term.

Rice is incredibly important for delta communities. Photo: Jeremy Barnicle/Mercy Corps

Mercy Corps has started an agency blog to give a glimpse into the work, thoughts and ideas of our team around the world. Here's a post I wrote yesterday that is really appropriate for Global Envision.

Farming communities in Myanmar's Irrawaddy Delta have always followed a cycle of debt. Each year, wealthy land owners would lend farmers money, tools and cattle needed to till the soil. After the harvest, the debt is repayed and the cycle continues.

Farming is important for delta communities. The Irrawaddy Delta produces more rice than any other region in the country. Nearly everyone is employed through rice production or the fishing industry.

So when Cyclone Nargis hit the delta about a year ago, the storm not only destroyed homes, fishing boats and agricultural fields, it destroyed livelihoods.

Nargis was the worst natural disaster Myanmar has ever experienced and racked up about $4 billion in damage. Some say the damage sustained in the Irrawaddy Delta was as bad as the Indian Ocean tsunami. Emergency aid from the UN, the government and NGOs has helped shelter and feed the thousands of survivors but there's still a lot of recovery work to be done.

Today, farmers looking to start over are caught in an incredibly frustrating situation: the wealthy land owners that used to lend money and tools lost everything as well, so now there is nobody to lend. Without cattle, tools and seeds, the farmers have little chance of ever getting ahead. Adding to the situation, prices for crops are down from past years. This leaves farming communities with few options, therefore trapping them in poverty.

I first learned about this debt trap in the Al Jazeera video below. The situation is so heartbreaking, but also too common in poverty-stricken communities. Mercy Corps has helped more than 7,000 families rebuild their rice paddies in the delta. We've also given more than 25,000 people small grants to help them earn an income, which in turn helps restart the local economy and helps free these communities from the cycle of debt.

A young girl walking on the outskirts of Kibera, the largest slum in Africa. Photo: subcomandanta (flickr)

More than $50 billion of foreign aid is given to African countries every year to address poverty on the continent. Although this may seem generous, and to some a solid strategy to treat Africa’s ailments, Dambisa Moyo — a Zambian economist with a background that includes Harvard, Oxford and Goldman Sachs — says just the opposite.

In her new book, Dead Aid: Why Aid is Not Working and How There is Another Way for Africa, Moyo claims that foreign aid has been "an unmitigated political, economic and humanitarian disaster.”

In a recent op-ed piece in the Wall Street Journal, Moyo writes that although she isn’t completely against humanitarian aid, she doesn’t believe "charity-based aid" can provide long-term sustainable development for Africa. Her biggest issue is with “government-to-government aid,” and funds from large monetary institutions like the World Bank. Moyo says the $60 trillion of this aid that's been given in the past 60 years is not working, evident from the fact that the number of Africans who live on less than $1 day has doubled in the last 20 years. And most foreign government aid, she argues, has been pocketed by corrupt politicians.

Trade, foreign investments and microfinance opportunities can provide a better future for Africans, Moyo said in an interview with the New York Times.

As expected, Dambisa Moyo’s claims have come under fire. In an interview with Newsweek, ONE Campaign co-founder Jamie Drummond says “Dead Aid” is “a poor polemic, with nothing new of substance, filled with anecdotal micro examples which ignore mountains of evidence." Madeleine Bunting from the Guardian calls Moyo’s claims “poorly argued” with “frequent pre-emptory glib conclusions.”

I wanted to get another perspective on Dambisa Moyo's assertions regarding the effects of foreign aid on Africa. So I asked Laura Miller — Program Officer for Central Africa at Mercy Corps — to respond to some of Moyo's claims based on her experience in the international-aid business, including stints in the Central African Republic and the Democratic Republic of the Congo.

A ventor illegally sells bags of charcoal on the side of the road. Photo: Scott Gregory Photography (flickr)

Charcoal is Malawi's cheapest energy source, but local dependency on charcoal fuel is stripping the country's forests. The charcoal trade is illegal in Malawi, and now government and environmental groups are scrambling to find affordable forms of alternative energy for heating and cooking.

A shift away from charcoal seems implausible for many residents of the tiny southeast African country, where electricity and other energy options are much more expensive. Voice of America reports that Malawians, who earn an average of $19 a month, would have to fork out $30 for a new electric hot plate, where a locally made charcoal stove costs only $2.

Environmentalists say the charcoal trade is responsible for the loss of 50,000 hectares of native forests — the highest deforestation rate in Southeastern Africa.

Police roadblocks have failed to significantly impede charcoal trafficking. Malawi charcoal producer John Manda told VOA why he continues to ignore the charcoal ban:

I have been burning charcoal for 20 years. This is where my bread and butter come from; this is where I get money to pay school fees for my children. Although I know that it is not legal, there is no way I can stop without government giving me an alternative business.

Charcoal is one of the few industries in Malawi that benefits the poor, economist Patrick Kambewa told IRIN. In 2007, Kambewa published a report on charcoal consumption, trade and production which estimated that around 93,000 people depend on the charcoal industry for employment. (Malawi has a population of over 10 million.) Kambewa suggests that industry regulation — not criminalization — is a wiser way to address charcoal consumption.

"[Criminalizing the charcoal trade] has not helped matters, and all government ought to do is look into issues of taxation and rehabilitation of forests," said Kambewa. "People should be trained on how to manage forests at community level. They should be told about the importance of reforestation and the need to manage such resources.

Malawi is trying to wean itself off charcoal. The locally-based Wildlife and Environmental Society is training people in other profitable vocations like beekeeping and fruit juice production. Meanwhile, the government, with assistance from the European Union, has launched a six-year program that promotes sustainable forest management. The program will also push for expanding use of wind and solar energy. But VOA says people are skeptical that these efforts will fail to reduce the temptation of the lucrative charcoal trade.

In refugee camps in Sudan and the Congo, Mercy Corps trained locals to build and use fuel-efficient stoves, reducing the demand for firewood and ultimately cutting consumption by 50 percent.

Mercy Corps' Cassandra Nelson.

Despite Israel’s commitment to establishing a humanitarian corridor and daily three-hour ceasefire, delivering humanitarian supplies to the Gaza Strip has been a challenge. The Mercy Corps team on the ground reports that on the first day of the ceasefire, fewer than 40 trucks were allowed in — compared with nearly 500 trucks per day in spring 2007.

Yesterday a truckload of 7 tons food ($17,000 worth) for 2,000 people made it into Gaza. Mercy Corps staffer Cassandra Nelson shares her account of the transfer below.

Despite many obstacles and bureaucratic procedures presented by the Israeli authorities, Mercy Corps successfully delivered emergency relief food items to Gaza on Thursday.

The organization delivered a truckload of vegetable cooking oil, rice and canned tuna fish in sufficient quantities to feed 2,000 extremely vulnerable people for a week.

Mercy Corps spent the past 11 days working through Israeli red tape and protocols that seemed to change daily to secure the permission to deliver the truck today. The delivery was supposed to be made Wednesday, but at 2 a.m. the Mercy Corps team in Jerusalem received notice from the Israeli Defense Forces that the delivery was being postponed because it contained dates, which were not an essential food item. Today's delivery did not include dates.

The truck was repacked last night without the dates and with an extra three tons of rice. At dawn this morning, the truck and Mercy Corps monitors set out for the Kerem Shalom checkpoint.

The Mercy Corps vehicle joined a line of about 25 trucks waiting at the border. After about an hour long wait, the Israeli customs officials inspected the delivery and paperwork and allowed the truck to proceed into the unloading area for all shipments.

The vehicle was admitted to the unloading compound with several other aid trucks — all from various UN branches. The pallets were unloaded by forklift.

After all the items were removed from the truck and placed on the pavement of the compound, the security check began. Sniffing dogs were released to check the material. Next, a border control worker probed and stabbed every package with a long metal rod to check if anything might be hidden inside.

After the checks were completed, all the Israeli workers and other observers and monitors were told to exit back to the Israel side of the border. Once the compound was empty of all people, the gates on the Israeli side were slammed shut.

Next, the gates on the Gaza side of the compound were opened, allowing the Palestinians to enter the compound and collect the delivery with their trucks. No trucks were allowed to drive from the Israeli side to the Gaza side. Everything was offloaded from the trucks on the Israel side and then reloaded onto different trucks on the Gaza side.

Israeli guards said that at no point in the process are Israelis and Palestinians from the Gaza side allowed to meet each other.

The number deliveries are still far short of what is needed to serve a population that increasingly relies on outside aid to survive. On Wednesday, only 36 humanitarian-aid trucks were allowed to make their deliveries. Compare that to 2007, when an average of 500 trucks entered daily.

The Wall Street Journal reports on Mercy Corps' challenges in sending the delivery of food aid in this video.

Given the frequently gloomy headlines regarding the Israeli-Palestinian peace process, many may not be surprised to hear of the latest violence in the region. But NPR reports the current conflict is the heaviest fighting the Gaza Strip has seen since the 1967 Six Day War — and some of the hardest hit seem to be Palestinian civilians.

Following the start of an Israeli ground invasion, the latest reports from the Washington Post indicate that 550 Palestinians have been killed and 2,500 injured — and according to Palestinian health officials, between 24 and 30 percent of those are women and children. Currently the Israeli government has closed Gaza's borders to everything except a small trickle of humanitarian aid, insufficient to meet the needs on the ground.

Mercy Corps is calling for immediate humanitarian access to Gaza to deliver food and other essential supplies. You can sign the petition by clicking here. This petition urges the U.S. government to push for aid to be allowed in now.

You can also help get critical humanitarian items needed once the border is open by donating to Mercy Corps' Gaza Crisis Fund. Mercy Corps has a four-ton shipment of food that's scheduled to enter Gaza tomorrow, and they're deploying additional aid workers to Jerusalem and Egypt to prepare to do more. Check out how Gazan youth involved with Mercy Corps are handling the crisis and keep up-to-date on Mercy Corps' response to the crisis.

The world is buzzing about the U.S. election results, and Afghanistan — where I'm collecting stories on Mercy Corps projects — is no exception. When we arrived at Mercy Corps' Kunduz office on Election Day, everyone there was quizzing us on the Electoral Vote count, and what states Obama was winning or close to it. In the days since, I've broached the subject with everyone from a group of young hotel employees to a trio of farmers in the hills east of Kunduz. Everyone had something to say about it.

"We hope that he will increase assistance to Afghanistan," said Syeed, a wheat farmer in Burka Province. He and his companions were happy about Obama's pledge of financial support to their country. "We will support anyone who says they will bring that kind of help to our country."

Many Afghans were elated about Obama's Muslim heritage, even if Obama himself is a Christian. "Simply having those roots in his family is big for us," said Enyatullah, one of our waiters at a Kunduz hotel. "Our religion has been seen as so terrible in the United States."

I was sure I'd hear at least some concern about Obama's pledge to send more U.S. troops to fight the Taliban and Al Qaeda. Surprisingly, though, that's one of the reasons people said they were thrilled with Obama's election. Amanullah Amin, a civil engineer I spoke to, was convinced that Obama "will attack the roots of terror in the country. There is a saying here: If you want a clean river, don't go to the middle, don't go to the end — go to the source."

We were driving through the desert Wednesday morning while Obama spoke in Chicago's Grant Park, but Miguel and I watched the replay on CNN that night in our Kunduz hotel room. Photo: Miguel Samper for Mercy Corps

The worldwide hunger epidemic is real. Rising costs of fuel and food, persistent conflicts, disease and global warming mean that the crisis will get worse before it gets better.

That's why Mercy Corps is opening a new Action Center to End World Hunger — to get ordinary U.S. citizens like you motivated, equipped and mobilized to end hunger. The new Center opens October 16 in New York City.

All of us, working together, can end the world hunger epidemic. How? Become a hunger activist. Get your children, neighbors, family and friends to become hunger activists. Visit the ActionCenter.org website, and if you're in New York, stop by the Center and get in the action, right now.

Your Action Center visit puts you up close and personal with our field work around the world — in a fascinating, dynamic setting abuzz with smart conversations, high-tech media and hundreds of ways to get involved right now.

For starters, watch this Tina Fey video about the hunger epidemic and how you can take action with Mercy Corps' to end hunger worldwide. Then visit Mercy Corps' ActionCenter.org website to learn more.

Photo: deCadmus (flickr)

In most progressive political circles, Wal-Mart is more reviled than revered. So it can come as a shock to hear the massive American retailer has teamed up with Global Envision's parent, Mercy Corps — a humanitarian agency known for its leanness and innovative approaches to poverty — on a project that benefits small indigenous farmers in impoverished Guatemala.

Wal-Mart reputation is far from spotless. It is sued between two and five times every weekday in federal court, according to a group that tracks Wal-Mart litigation and supports lawyers for plaintiffs fighting the retail giant. It's also been cited for child-labor law violations in three states, accused of aggressively fighting employee efforts to unionize, and criticized for squeezing suppliers and threatening the health of local retail.

Among the questions the partnership raises: Is Mercy Corps being used as public relations window dressing? How do Wal-Mart's business motives align with Mercy Corps' charitable ones? And most importantly, would training farmers to be Wal-Mart suppliers eventually lead to their exploitation?

The deal between Mercy Corps and Wal-Mart also involves the U.S. Agency for International Development, which is keen to see humanitarian groups team up with U.S. corporate interests to put a dent in developing-world poverty. The so-called "Inclusive Market Alliance" is backed by financial commitments of $1.1 million from USAID, $600,000 from Wal-Mart, and $500,000 from Mercy Corps.

Here's why the agreement made sense from Mercy Corps' perspective. Rural Guatemala remains stubbornly poor. In 2000, 75 percent of Guatemala's 6.4 million poor resided in rural areas. Until now, the agency's programs in Guatemala have focused on helping indigenous groups to gain ownership of land, and to farm that land productively.

Most small Guatemalan farmers sell to market middlemen, who have earned the pejorative nickname "coyotes" — they're the ones who profit from the transactions, rather than the farmers. Farmers could earn a higher return selling high-value products to large-scale buyers, i.e. supermarkets.

Wal-Mart controls a large share of Guatemala's supermarket industry. They have an interest in finding good, reliable suppliers, and in cutting out those same coyotes that are despised by farmers. They're willing to invest money in training and equipping farmers with the knowledge and tools they need to grow quality produce that supermarket shoppers want to buy.

As part of the program, farmers participate in trainings on processing and post-harvest techniques to meet national and international agricultural standards, and critical pricing and negotiation skills.

"Due to a great variety of buyers," explains Douglas Ovalle, who manages the project for Mercy Corps, "there is no danger of Wal-Mart owning the market 100 percent. What this project helps to do is expand options for the farmers."

And those expanded options, he says, will lead to greater income for small-farm families — many of whom lack even electricity and running water.

To many Americans, Wal-Mart is a wanna-be monopolist. To Mercy Corps and the struggling Guatemalan farmers it's trying to help, Ovalle says, Wal-Mart is "just another buyer."