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Disentangling Sri Lanka’s Foreign Aid

By U.S. News & World Report

In Sri Lanka, a brutal civil war based in ethnic conflict between the country’s Sinhalese majority and its Tamil minority lasted nearly three decades and killed more than 70,000. In 2009, the Sinhalese claimed victory to maintain their authority, and they continue to assert their sovereignty through the country’s post-war rehabilitation process.

The civil war attracted foreign aid money to the country, but an analysis of the dynamics of these funds by the nonprofit peace-building organization International Alert found that the government has taken a rather hardline approach in dictating the terms of the foreign aid it accepts. Instead of traditional donors like Europe and multilateral agencies that have strict aid guidelines of their own, Sri Lanka instead favors “nontraditional” donors that are newer global financial powers and more willing to accommodate looser terms and conditions with funding. Here is a breakdown of a few key countries that have contributed to Sri Lanka’s development.

India

India, considered an emerging market itself, has contributed more than $1.1 billion in aid to Sri Lanka since 2008, according to the Sri Lankan government’s Department of External Resources 2015 Performance Report. The two countries are closely linked; Sri Lanka is often referred to as the teardrop of India, and many Tamils also live in India. Despite a decades-long development partnership, an exponential increase in aid from India in recent years furthers what International Alert considers India’s “desire to consolidate its place as a regional power.” About half of the country’s overall investment in South Asian countries is concentrated in Sri Lanka, where the majority of funds disbursed have been utilized for railroad development and restoration, key to strengthening supply chain and other trade resources.

China

China is another “crucial” nontraditional donor, according to International Alert, and the “global and regional strategic reasoning behind Chinese development assistance [to Sri Lanka] is oftentimes undeniable.” Possible strategic motivations presented by the nonprofit organization include a “tit-for-tat strategy” in response to India’s engagement in the region and a “String of Pearls” strategy that would afford China a network of naval bases in key countries across the region. The Chinese government and national banks committed nearly $5 billion to Sri Lanka between 2011 and 2015, effectively doubling total Chinese aid to the country since the 1970s. About a third of those funds have been disbursed to programs to build and rehabilitate roadways, according to the 2015 Sri Lankan government report. Often, Chinese loan terms stipulate that priority be given to Chinese contractors and materials necessary to complete the projects.

Japan

Japan has extended annual loan packages to Sri Lanka since 1965 but outpaced China as the top aid contributor in 2011. Relations between Sri Lanka and Japan have been friendly historically and have particularly strengthened since both countries ushered in new governments in 2015. According to the Daily FT, Sri Lanka’s national daily business paper, maritime security may be a key factor in the bilateral relationship, as “China might use Sri Lanka (its natural harbor) for its domination in the Indian Ocean” and “Japan may possibly try to get Sri Lanka’s support to mitigate China’s security threat in the Asian region.” Japan committed nearly $400 million to the development of Sri Lanka’s Bandaranaike International Airport after a diplomatic meeting in which Sri Lanka expressed continued support of Japan’s bid for a permanent seat in the United Nations Security Council. Investments in aviation to promote tourism to Sri Lanka and the development of power and energy supply programs have been the principal recipients of Japanese aid to Sri Lanka.

United States

One of the top “traditional” Western donors, the U.S. has funneled more than $2 billion in investment to Sri Lanka since the country’s independence. In 2015, U.S. Secretary of State John Kerry announced $40 million in aid — compared to $10 million in 2010 — and in 2016, the two countries held the inaugural U.S.-Sri Lanka Partnership dialogue. Unlike most “non-traditional” donors in the region, U.S. aid focuses on meeting both democracy and social development goals, as well as trade and economic goals. On its website, the United States Agency for International Development is actively seeking applications for programs aimed at improving democratic governance through an empowered news media in Sri Lanka. However, according to International Alert, “Western-based” processes of aid disbursement — that emphasize transparency and accountability — are seen as “out of sync with ground realities and (Asian) cultural norms” by Sri Lankan officials, putting them at odds with the overarching socioeconomic and development policy of the Sri Lankan government.

Europe

Much of the funding Sri Lanka receives from nontraditional donors has been in the form of loans, which has dramatically increased the country’s external debt, particularly to China. In the years following the end of the war, countries in Europe, like the Netherlands, France and Spain, and other traditional donors were more prone to offering aid in the form of grants that do not require repayment. But when Sri Lanka gained status as a middle-income country, grants became much less common. In 2015, Germany was the only European country to offer a loan to Sri Lanka. Rising debt has led Sri Lanka to explore aid options with less conditions than those usually enacted by traditional donors. Most commercial borrowings from the West, according to Sri Lanka’s Department of External Resources, are utilized for top priority projects in transportation infrastructure and social infrastructure, like health care facilities and technology.

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Disentangling Sri Lanka’s Foreign Aid originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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