US Foreign Aid: Meeting the Challenges of the 21st Century

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US Foreign Aid Meeting the Challenges of the
21st Century

• US Agency for International Development
• January 2005

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Development can succeed

• 50 Years of Development Gains
• Average infant mortality in developing countries
  equivalent to 1950s industrialized countries
• From 1951 to 1998, if population living on
  1/day dropped from 55 to 20
• In 1950s, 27 world population had life
  expectancy less than 40 years. By 2000, only .2
  remain that low.
• In 1950s, Korea, Taiwan, Singapore, Malaysia and
  Thailand all considered basket cases

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Challenges are growing.

• Post-Cold War context Globalization and War on
  Terror
• Increasing demands for foreign aid
• Multiple actors in foreign aid

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MissionState Department and US Agency for
International Development

• Create a more secure, democratic and prosperous
  world for the benefit of the American people and
  the international community.
• Principal aims are anchored in the Presidents
  National Security Strategydiplomacy, defense and
  DEVELOMENT.

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Creating a more secure, democratic and prosperous
world

• First, we will strive to build and maintain
  strong bilateral and multilateral relationships
  in pursuit of our mission.
• Second, we must protect our nation, our allies,
  and our friends against the transnational dangers
  and enduring threats arising from tyranny,
  poverty and disease.

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Create a more secure, democratic and prosperous
world (cont.)

• Third, in confronting the intersection of
  traditional and transnational challenges, we will
  combine our diplomatic skills and development
  assistance to act boldly to foster a more
  democratic and prosperous world integrated into
  the global economy.

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Protect US national interests and advance peace,
security and sustainable development

• Focus on the following key priorities during the
  FY 2004-2009 timeframe
• --Arab-Israeli Peace
• --A Stable and Democratic Iraq
• --Democracy and Economic Freedom in the Muslim
  World.

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National interests,advance peace,
security,sustainable development (cont.)

• A Stable and Democratic Afghanistan
• Reduction of the North Korean Threat to the
  Region and World.
• Reduction of Tensions between India and Pakistan
• Drug Eradication and Democracy in the Andean
  Region
• Strengthen Alliances and Partnerships

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National interests,advance peace and security,
and sustainable development (cont.)

• A more Effective and Accountable United Nations.
• HIV/AIDS Prevention, Treatment and Care.
• Reduced Threat of Famine.
• Accountable Development Assistance
• Aligning Diplomacy and Development Assistance.

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Advance Peace and Security

• Regional SecurityAvert and resolve local and
  regional conflicts to preserve peace and minimize
  harm.
• --Israel and the Palestinians
• --South Asia
• --East Asia and the Pacific
• --Europe and Central Asia

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Advance Peace and Security (cont)

• Regional Security (cont)
• --Persian Gulf
• --Africa
• --Sudan
• --Western Hemisphere
• Counter-TerrorismPrevent attacks against the US,
  our allies, and our friends, and strengthen
  alliances and international arrangements to
  defeat global terrorism.

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Advance Peace and Security (cont)

• Homeland SecurityProtect the homeland by
  enhancing the security of our borders and
  infrastructure.
• Weapons of Mass DestructionReduce the threat of
  weapons of mass destruction to the US, our
  allies, and our friends.
• International Crime and DrugsMinimize the impact
  of international crime and illegal drugs on the
  US and its citizens.

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Advance Sustainable Development and Global
Interests

• Democracy and Human RightsAdvance the growth of
  democracy and good governance, including civil
  society, the rule of law, respect for human
  rights, and religious freedom.
• Economic Prosperity and SecurityStrengthen world
  economic growth, development, and stability,
  while expanding opportunities for US businesses
  and ensuring economic security for the nation.

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Advance Sustainable Development and Global
Interests (cont.)

• Social and Environmental IssuesImprove health,
  education, environment, and other conditions for
  the global population.
• Humanitarian ResponseMinimize the human costs of
  displacement, conflicts, and natural disasters.

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Promote International Understanding

• Public Diplomacy and Public AffairsIncrease
  understanding for American values, policies and
  initiative to crease a receptive international
  environment.

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More Accountable Development Assistance?

• To clarify the challenges of the development
  leg of the NSS
• To apply the effectiveness principles of the MCA
  to our development assistance
• To reduce conflict among multiple
  objectives/goals of bilateral foreign aid
• To manage more strategically and get greater
  clearer results

• National Security Strategygtgtgtgtgtgtgtgtgtgtgt
• Effectiveness gtgtgtgtgtgtgt
• Policy Coherence gtgtgtgt
• Strategic Mgt/Results gtgtgt

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Five Core Operational Goals

• Promote transformational development
• Strengthen fragile states
• Support strategic states
• Provide humanitarian relief
• Address global, transnational and other special
  concerns

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A New Approach to Foreign AssistanceClarify
Goals, Align Resources, Manage Strategically
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Transformational Development

• Tailor assistance to the different opportunities
  presented by each sub-group
• Threshold countries. Qualify countries for MCA.
• Good performers. Support development progress in
  ruling justly, economic opportunity and investing
  in people.
• Fair performers. Support reasonable
  opportunities (e.g., committed leadership) for
  development.
• Middle income countries. Smooth and phase the
  shift from development resources to private
  resources.

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Strengthen Fragile States

• Fragile states umbrella term for failing,
  failed and recovering states.
• Many weak performers may actually be fragile
  states.
• Poor governance is a central issue most lack
  legitimacy and/or effectiveness
• Approach
• Goals stabilization, reform and recovery
• Priority Sectors security, political, economic
  and social
• Partners assist state and non-state actors
• Integrated Responses

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Support Strategic States

• The Congress or the Administration identifies
  countries and sets levels based on foreign policy
  priorities, not development criteria.
• Programs defined by foreign policy objectives but
  may also address development or fragility issues.
• Policy goals supporting development objectives
  will improve likelihood of long-term success.
• Success measured against objectives of
  assistancewhich may or may not include
  development.

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Provide Humanitarian Assistance

• Available to all countries without conditions.
• Provide based on urgent need not on performance
  criteria.
• Address systemic failures where disasters have
  become a chronic condition.

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Address Global/Transnational Issues

• Selection of countries and resource levels based
  on severity of the problem and problems
  importance to U.S. security.
• Coherent USG approach across agencies is vital.
• Public/private partnerships particularly relevant
  in this goal area.

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Improving Effectiveness

• Aid effectiveness requires progress in two areas
  
• Selectivity
• Among countries
• Assistance priorities within countries
• Policy coherence
• Identification of clear goals
• Integrated approaches across sectors and agencies
  for each goal

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Development Assistance Strategy
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Thank you.

• Arigato!

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