FOREIGN AID, FOREIGN POLICY AND DEVELOPMENT MANAGEMENT

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FOREIGN AID,FOREIGN POLICY AND DEVELOPMENT
MANAGEMENT

• Louis A. Picard
• PIA 2096/PIA 2490- Week Five

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Foreign Aid Course

• Foreign Aid Policy 1955-1965
• The Second Decade

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Focus This Week

• Motivations
• Vietnam The Early Years
• Basic Needs and the Logic of Projects

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Motives

• Idealism?
• Adventure and freedom
• Mission
• National Loyalty
• Money and Life Style

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Motivations The Expatriate Life Style

• Read James Fox, White Mischief (Harmondsworth
  Penguin, 1982). Also Feature Film
• The Happy Valley Set, Central Kenya during the
  1930s
• Reference point for Emmas Kenya Friends
• Outside of Social Convention
• Is this International Development

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Discussion

• The Motives of those in International Development

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Experiments Non-Profits

• The Role of the University- Hundreds of Contracts
  in the 1950s-1960s Capacity Building
• The Operational Expert (OPEX)
• Technical Assistance- Advisor
• Food Aid and NGOs

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Public Law 480- Since the mid-1950s

• Title One- Cheap food which is sold to the
  private sector
• Title Two- Emergency food
• Title Three- Food for Development
  (Distributed as part of
• Development projects)

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Multi-lateral organizations 1960

• United Nations Organizations (UNDP)- Country
  Voting
• IMF- Structural Loans
• World Bank- Development Loans- Problem
  Weighted Voting

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Technical Assistance Profile Groups

• Summary of Contracting Agencies With the
• Technical Cooperation Administration in 1952i
• Educational Institutions 58
• Consulting Firms 42
• Research Foundations 5
• Religious Organizations 3
• TOTAL
  108
• i Walter R. Sharp, The Institutional
  Framework for Technical Assistance,
  International Organization, vol. 7, no. 3 (August
  1953), p 364.

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Quote

• In 1952, Edward Weidner, portrayed the donor
  environment as follows Zeal or enthusiasm is
  lacking. The missionary spirit, or, more
  properly, the sense of mission is not present in
  most instances.i
• i Edward W. Weidner, Technical Assistance in
  Public Administration Overseas The Case for
  Development Administration (Chicago Public
  Administration Service, 1964), p. 59.

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Vietnam

• The Model for the 1960s

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Vietnam The Early Years

• Beginnings-1951. Economic and Military
  Assistance Program in Indo-China
• Then Part of the French Empire
• 1954. U.S. subsidizing French Rule and fight
  against Communism in Vietnam

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Vietnam Why?

• Fall of China
• French Civilizing Mission
• Part of Marshall Plan
• March of Folly? (Barbara Tuchman)

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Why we were in Vietnam?

• We aid other countries with whom our
  relationships may be more nearly correct than
  cordial, because we believe that it is in our
  interests to maintain friendly contacts with
  their governments and their people and to keep
  them from going behind the Iron Curtain.i
• i Speech by Arthur Z. Gardiner, Director
  United States Operations Mission in Viet-nam,
  address given to the Saigon Rotary Club on
  September 22, 1960 (Washington, D.C. Department
  of State and U.S. Government Printer, 1961).

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Why Foreign Aid? 1975

• U.N. Ambassador Jeanne Kirkpatricks alleged
  comment about why we provided foreign aid to
  Zaires Mobutu
• He may be a Son-of-a-Bitch but hes Our
  Son-of-a-Bitch.

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Movement Towards Projects 1970s

• System of Logic
• The Syllogism

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Quote

• The syllogism is a reliable form of logic.i
• i Roland Egger, University of Virginia quoted
  in Harlan Cleveland, Gerard J. Mangone, John
  Clarke Adams, The Overseas Americans (New York
  McGraw-Hill, 1960), p. 41.

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Rural Development The Models

• Winning Hearts and Minds
• Villagization- Rural Community Development
• Strategies of Community Development and capacity
  building have their origins in 1950s Vietnam

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The Best of Vietnam

• Focus on Community Development
• Rural Industrialization and (later) micro-credit
• Foreign Aid Field Officers- on the ground
• Basic Needs

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BASICNEEDS

• 1968- Robert McNamara appointed President of the
  World Bank
• Announces a shift from Growth strategy to Basic
  Needs
• Part of Debate about Equity

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Integrated Rural Development The Project of the
1970s

• Combines growth and production with social
  services
• Area wide Approach providing seeds, fertilizer
  and equipment
• With social services schools, water, health
  service and community development at village level

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The Problem Basic Needs

• The Problem Presages Economic Collapse
• Overview Of Financial and Budgetary Management
  Systems in LDCs

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Domestic Management Systems and International
Influences

• Six historical periods of budgetary and fiscal
  management
• Until the 1950s
• Recurrent budgets
• Law and order
• Colonial models
• Recurrent vs. Development budgets

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Domestic Management Systems and International
Influences

• Six historical periods of budgetary and fiscal
  management
• Mid 1960s 1970s
• Distribution and basic needs
• World Bank and poorest of the poor
• Heavy debts and deficit spending

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Domestic Management Systems and International
Influences

• Six historical periods of budgetary and fiscal
  management
• Mid 1970s 1980 (Planning vs. Budgets)
• Planning demanded by technical assistance
• Technical assistance both grants and loans (no
  private loans to Africa)
• Project planning "wins" over national planning
  and budgeting systems

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Picards View Vietnam

• Represents the Best and Worst of Foreign Aid
  Policy
• We had to burn the village in order to save it
• Strategies of Community Develop and capacity
  building have their origins in 1950s Vietnam

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The Counter Narrative

• GOAL
• To conceive of a rival hypothesis that could
  reverse perceived reality and provides a
  possible policy option for future attention
  because of its very plausibility.

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Three Views of Foreign Aid- A Reminder

• 1. Part of Balance of Power- Carrot and Stick
  Approach (based on exchange Theory
• 2. Commercial Promotion Focus on
  International Trade
• 3. Humanitarian Theory Moral Imperative

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Discussion

• Break