Global Development: Views from the Center

 

Who’d a Thunk It? Bipartisan Consensus on Foreign Aid

July 30, 2009


This is a joint posting with Sarah Jane Staats and also appeared on the Huffington Post

Sheila Herrling and Sara Jane StaatsAmidst of a month of partisan battles on Capitol Hill over a Supreme Court nominee, healthcare and financial regulation, a new bill was introduced this week that rose above party lines: the Foreign Assistance Revitalization and Accountability Act of 2009 (S. 1524). Senators Kerry, Lugar, Menendez, Corker, Risch and Cardin–three Democrats and three Republicans–introduced the bill as “a first step toward comprehensive reform of U.S. foreign assistance,” showing they are ready, willing and able to work with the administration on a set of deeper reforms.

The new legislation puts USAID front and center on U.S. development policy and strengthens its structure and capacity to be more effective and accountable. Key elements of the bill include:

  • Adding a second Deputy Administrator (just like State has with Jack Lew and Jim Steinberg).
  • Adding an Assistant Administrator for Policy and Strategic Planning to direct U.S. government policy on development issues, provide long-term planning and budget management, and conduct research, monitoring and evaluation (in a new office of Learning, Evaluation and Analysis in Development).
  • Creating an independent Council on Research and Evaluation (CORE) in the executive branch to objectively evaluate the impact of all (multilateral and bilateral) foreign aid programs funded by the U.S. (CGD vice president Ruth Levine called for independent impact evaluation of aid in testimony before the Senate Foreign Relations Committee back in 2006.
  • Mandating a strategic review of USAID human resources needs at headquarters and in the field, with help from a public-private task-force.
    While remarkable for its bipartisanship, the bill is even more commendable for its content and the co-sponsors’ passion behind that content.

Senator Kerry’s speech at Brookings signaled his intent to take on the need for strengthening the development policy pillar of U.S. national security, including through serious foreign aid reform. And Senator Lugar’s guest op-ed posted on our site shows he means business on the details of how to and who should move the effort forward. Neither backed down from what we presume was pressure from the State Department to hold off on the bill until State finished its recently-announced Quadrennial Development and Diplomacy Review (QDDR) . But, as Senator Lugar said in his op-ed, these “are just first steps that do not pre-judge or conflict with the State Department’s current review of our diplomatic and development policy. A strong, independent foreign aid agency is critical to our long-term security.”
We couldn’t agree more. All these pieces signal growing support in Congress and among constituents. The congressional initiatives and the QDDR should and can work in tandem. But finishing the task requires adding a few more pieces and perhaps taking out a few others, namely:

  • Name a strong USAID Administrator NOW and give that appointee a healthy degree of autonomy from the State Department to lead on development, including a seat on the National Security Council. This should not be seen as a threat to the Secretary of State’s authority but rather as a powerful complementary smart-power development voice at the decision-making table.
  • Get cracking on a White House-led, whole-of-government national strategy on global development. The QDDR ought to eventually be a review of a national strategy (much like the Quadrennial Defense Review reviews performance against the National Security Strategy), not just operations. And the Kerry-Lugar bill needs to make sure that the coherence of U.S. policies – how they either work in synergy or at cross-purposes — is evaluated and strengthened to get the biggest bang from our foreign assistance bucks.
  • Rewrite the Foreign Assistance Act of 1961, to clarify the mission, mandate and organizational structure for U.S. foreign assistance and reduce the extensive amount of restrictions–earmarks, presidential initiatives, tied aid, fragmentation–that lessen the impact of development dollars.
  • Ensure that the efforts of the new U.S. evaluation council (CORE) contribute to and learn from global impact evaluation mechanisms such as the International Initiative for Impact Evaluation or 3ie.
  • Lessen the reporting burden on agencies to the maximum degree possible. The Kerry-Lugar bill contains some thirteen new reporting requirements without removing any of the existing (and huge) stock. It is time for a comprehensive review to rationalize reporting requirements, eliminating unnecessary, duplicative and/or outdated reports to allow USAID to focus the maximum amount of intellectual and operational capacity on delivering effective, results-based development programs.

Huge kudos go to the co-sponsors of the new bill and their staff for their thoughtful, well-reasoned and non-partisan approach to strengthening USAID and monitoring development impact as important steps toward broader reform. We are hoping this latest step from Congress leads to the giant leap necessary for comprehensive U.S. foreign aid reform.

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8 Responses to “Who’d a Thunk It? Bipartisan Consensus on Foreign Aid”

  1. There should not be a seat on the NSC. Development is development not foreign policy, not strategic concerns!!

  2. A seat on the NSC is a long overdue. It’s about time we consider the impact on our national security resulting from our aid policies and decisions.

  3. I never agreed with almost anything the late Senator Jesse Helms from North Carolina ever said, but on U.S. AID I think he was correct. The agency should be abolished. It is hopelessly disfunctional. Any attempt to reform it will be undermined by its current crew of bureaucrats and the “Inside the Beltway” bandits who feed off the status quo. U.S. development assistance certainly needs a complete overhaul, but I think we really need to start with a clean slate if it is to be effective.

  4. Foreign development aid has always been incredibly integrated with national security–sometimes too much so. I hope that CORE will bring a people-centered perspective to USAID, ensuring that any aid project undertaken truly benefits (and does not harm) those most in need in addition to dealing with security concerns.

  5. A reformed and strengthened USAID is very much needed and the Administrator should have a place at the NSC table because development is a core strategic interest. However, reformation of the agency will not bring new or better results without a commitment from this Administration and Congress to create a policy framework that better defines US development objectives and decreases the impulse of Presidents and Members of Congress to create one-off, single issue initiatives and programs/offices that then take on bureaucratic lives of their own. A policy framework that is guided by evidence of greatest need in health, education, etc., in addition to other strategic US interests would be refreshing. Couple that with a commitment to build local capacity in the places of greatest need and USAID could perform successfully.

  6. TO QUOTE:Catherine Bertini and Dan Glickman, Chicago Group:
    “Washington also needs to start listening better to the Africans and Asians in need. This means better engaging TOwith rural communities, and especially women, in designing local agricultural projects; partnering with developing-country governments, NGOS, and the private sector to help shape agricultural strategies; and cooperating more with regional
    entities in Africa, such as the New Partnership for Africa’s Development (NEPAD) and its Comprehensive Africa Agriculture Development Program, the Southern African Development Community, and the African Union.”

  7. Emphasis given to INDEPENDENT tracking, monitoring and evaluating USG foreign aid assistance deserve strong support. The urgent need to improve knowledge management by our organizations must also come to the forefront. Mistakes will be made, but at least let’s be creative by making fresh ones, and not repeating what has not worked in the past. Academicians should be welcomed to research more effective tracking, monitoring and evaluation tools, specially to find solutions that shorten timelines and neutralize exogenous changes. ..Practitioners, however, must run operations in order to ensure that findings inform decision making, and are not relegated to journal articles. Do establish
    eferee boards, where project evaluations and design as well as strategies, could be analyzed by the best experienced minds in the respective themes. . So called impact evaluations should form an integral part of any development rethinking as well as the mechanisms to ensure they inform decisions. Why? To gain a more efficient use of resources? That is good. But why? Those evaluations should be the steering wheel guiding our programs to a clear end game: the abolition of US foreign assistance, because it is no longer needed.

    Should we hope, that as part of the reform, a more pragmatic framework is followed by Congress in their relationship with the USG development programs and strategies? There is a tragicomic inflation of results promised in exchange for meager funding. Don Perignon taste is good, but do not expect the bubbly on a Dr. Pepper budget. Please, all the friends advocating reform of our foreign assistance apparatus should agree on one common theme: development takes time. As I was told in Mozambique, we have the clock, they have the time. Cultures move at different speeds. A New York minute has significantly less time content than a Congo minute. One of the most onerous jobs in managing foreign assistance is to act as a clutch: bring those two “speeds” into harmony.

    Any revamping must seek increased flexibility to the straightjacket forced on our foreign assistance community by the FAR (Federal Acquisition and Regulations) and the ADS, governing USAID and MCC procurement and assistance vehicles. More flexible and really accountable instruments must be found beyond the project management unit. Reality cannot be sliced into projects; when these artificial constructs end, what are the enduring results? Who is accountable for results after end of project. ? The all important replication of success and avoidance of repeated failure is extended….how? Experiment with national or regional open architecture funds, which could be financed from several sources, have a longer time line, and can be made more accountable for verifiable results

    More responsibility and authority should be given to management, primarily Mission Directors and Country Representatives. Personnel management should be revamped, with more tailored performance benchmarks and increased “life of service” training. Foreign Service appointments should not be granted as life long engagements, but as an opportunity to learn, serve, and as a wise step in proper career progression—in an increasingly global economy, that experience is worth its weight in gold. The Peace Corps observes a five year limit, perhaps a similar limit should also be set to foreign service careers in development assistance? On the flip side, capitalize on the human capital existing on
    etirees who are often willing to serve our foreign assistance interests on a pro-bono capacity. Those retirees may be part of the solutions to an inescapable need: provide better mentoring to the young blood entering the dicey foreign assistance field.

    The USG must strike a more prudent balance between officers and contractors; mechanisms should be put in place to protect our officers when they make a call on poor contract performance. Alas, problem finders are abhorred by the personnel evaluation system (and their senior managers–bring me solutions, so goes the mantra).Again, officers should have well defined boundaries in their responsibilities. How good is the investment of taxpayer money if when a carefully selected team of specialists present findings and recommendations, and an inexperienced CTO (the horrific title given to USAID line officers these days) unilaterally decides that such advise should be ignored? Enter a technical referee board? Programs in the field should be guided by capable Mission Directors, and not by second guessing from Washington and special, often well intentioned, interest groups. Yet, these MDs should be accountable for development achieved, not for fast disbursement. The fast flow of funds in Iraq and Afghanistan worries many of us, old salts.

    A premium must be placed on innovations, and finding new approaches and new partners in the development arena. Will doing more of the same with the same cast of characters result in more of the same? By freeing them from their paper chase, officers should be allowed to really oversee design and implementation,. Could the paper chase be outsourced to rural centers in our heartland? Our agencies should be at the forefront of ICT applications, and not lag at the tail end.

    The whole of government approach to development and diplomacy must be strongly encouraged. But, let’s be aware of the existing tension between each organization’s primary mandate and their development responsibility. (e.g. USDA, an organization which has always contributed greatly to development, must answer primarily to its agricultural and powerful agribusiness constituency). Farmers tend to have very short term interests (who is buying my crop by how much; they have short term payments to make) and the very large markets being developed for their products in emerging economies may not be that convincing in terms of their rushing cash flows.

    Others may not have a good fit in development at all. The Pentagon primary mandate is to kill our enemies, not to deal with starving children. Leave that to the professionals in those fields (paraphrasing the old joke: Is military development to development what hip hop is to Mozart?).

    As President Obama and Sect. Clinton just noted during their recent trips to Ghana and Kenya: shared responsibilities, shared opportunities. The MCC philosophy comes to the fore: those countries moving forward should find us at their side. If the countries do not have the minimum will to develop, do not invest our development funds there—call those funds something else, not foreign assistance.. Country ownership must guide levels of effort and our investment in their development. Local organizations, like those engaged in national agricultural research (NAR) should be reinforce as a first wave, external solutions should be considered only after local and regional options have failed to meet requirements. And then the programs should work towards a concrete goal: build up the national capacity to solve their own problems, in the concert of nations (no nation is self sufficient in knowledge generation).

    Impossible as it may appear now, label funds appropriately. Aid to Nigeria is to protect our oil interests there, not to pursue development. This country has enough wealth to buy out our whole foreign assistance program.

    As a retired foreign service officer I can assure everyone that, beyond byzantine discussions, in the field, US foreign assistance is a powerful arrow in our foreign policy quiver. Our diplomacy solves our problems in the short run, our development assistance ensures that our influence and power will even be greater tomorrow. Yes, reducing child malnutrition, bringing potable water to a village, saving that woman from oppressive abuse, seeing the shining eyes of students when they first touch a computer, opening up markets for those poor farmers, enabling the small and medium enterprises to grow and prosper, fostering the creation of productive jobs, and building up the capacity of our host governments to provide ever improving services to their people, to expand its revenue base, and to attract investments—all those achievements point in one direction: A more powerful and greater America in a more peaceful, prosperous, healthier planet.

    Foreign policy does reflect our national values. And Americans are among the most generous people in the world, they care about the poor, the vulnerable and the children trapped in hopeless cages of degrading poverty. That caring forms part of our national values; those values shape foreign policy. State, USAID, MCC, USDA, and others could be well qualified to address those intrinsic elements of our foreign policy–each one on its specialization, all working together to achieve our national objectives (yes, hope springs eternal–even the hope that entrenched bureaucracies could one day work together). Let’s improve what should perform better, and avoid the pitfalls of unending restructuring: the poor in the global village deserve better, our country deserves better.

    Felipe

  8. A core problem is the objectives/priorities of the in-country missions vis a vie Administration policy. There has to be more over-site to assure adherence to policy.

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