Global Development: Views from the Center

 

Here’s My Crazy Idea (and Video) for Fixing U.S. Development Policy

April 14, 2011


Followers of this blog know that I’ve been critical of the direction and implementation of U.S. development policy, and especially of the administration’s embrace of a w/hole-of-government approach that seems to be making things more confused rather than better.  In response, I often rightly get asked, “so what would work better?”  So, here it is, my radical idea for how to fix U.S. development policy, in a quick-fire 5-minute slidecast:

I think the slides offer a better explanation than a written paper, but here’s the idea in a nutshell:  U.S. development policy is wrought with problems (see Lael Brainard’s spaghetti bowl) that can be boiled down to three big ones:  (1) too many players, (2) too many objectives, and (3) no clarity on who leads and when.   Thus, my 3-step solution is to:

  1. Consolidate from 20+ departments, bureaus, and agencies involved in development to just seven.  Most programs should sensibly fall under a bolstered USAID.  All of the private sector tools would be merged into a new entity, the U.S. Development Bank, built around an expanded OPIC (more on that proposal and why it’s timely here).
  2. Prioritize objectives.  Brainard listed at least 50 aims of U.S. foreign assistance, but all of these could be merged to three overarching objectives: to (a) bolster security (b) support recovery in countries facing crisis or extreme poverty, and (c) promote economic opportunity    and growth.
  3. Clarify who leads and when.  A clean interagency process would have the NSC designate a lead agency for each country strategy or major initiative based on the primary objective. Thus in a security-priority situation (such as Yemen or counterterrorism) State would be the lead, with the other agencies playing a supporting role. In Malawi, Haiti, or the global food security initiative, USAID would be driving the strategy and take the lead. However, in the next wave of emerging markets (Ghana, Vietnam, Costa Rica) where investment and growth are the priority, or for initiatives like a big push on African infrastructure, the new USDB would take the interagency lead.

Any such proposal will have unresolved tensions and tradeoffs—indeed, managing those is what policymaking is all about.  But if the USG wants an ambitious development policy, these three steps may offer a better way than the current confusion—or the wishful thinking that the current scrambled mess can work if we all just play nice.

Thanks to super-RA Steph Majerowicz and media whiz Will McKitterick for putting together the slides and video!

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9 Responses to “Here’s My Crazy Idea (and Video) for Fixing U.S. Development Policy”

  1. I might quibble over a few details, but in general this is the most sensible idea for improving US foreign assistance that I have seen. As for the details, why not roll the MCC into the Economic growth/develop bank entity. Not sure why it merits special treatment.

  2. I could also quibble about some things (e.g., why focus on economic growth rather than governance), but my main point is: Why have the NSC make these decisions. That immediately puts security at the top of the pile. Seems to me we’re way too far along in that direction already.

  3. I find this idea just brilliant. US Development Bank is indeed essential for the PPPs for infrastructure and agriculture development in Africa and beyond. The need is so enormous that even the World Bank and African Development can tackle it alone with their own limited financial and technical resources. I would, however, sincerely urge Todd Moss to remain on course and push hard for this, not to get co-opted with a high-powered post at the State Department and forget it all!

  4. This does sound like a sensible proposal, unless it is code for going back to the bad old days of destroying the forests, rivers and other natural resources of developing countries. When mis-guided efforts to promote “development” are implemented without understanding the consequences, such investments can actually make poor people destitute. The security, poverty and economic development objectives must always be implemented with full knowledge of the impacts and environmental and social safeguards.
    Thus this proposal would benefit from clarifying that all strategic plans and activities for development and poverty aleviation would be properly vetted through internationally accepted processes of transparent public consultation (see e.g. the report of the World Commission on Dams).

  5. The concept definitely has merit. Just by a clearer definition of who is responsible for what will reduce time and intellectual energy in defending turf and increase the time and intellectual energy available for more effective assistance. I agree with Jeff that MCC more properly belongs under the Development Bank. Department of Defense would be interesting under this model–as it has programs in each area. But a good concept.

  6. Thanks for great comments.

    re MCC: I still see value in leaving it on its own and not allowing their model to get sucked into national security concerns any more than they already, given the board structure. I think the USDB could borrow a lot from MCC governance.

    Ben, I don’t think giving the NSC the delegation authority will elevate security any more than it already is. I think it will help clear up some of the muddle by forcing the selection of a lead agency.

    Nilgun, thanks. I’m taking the long-term view on this idea and will keep plugging away.

    Barbara, I don’t get how my proposal has an impact on the environment one way or the other. That’s a safeguards issue that seems unrelated to the interagency tensions I’m trying to untangle. I sure wouldn’t want EPA to be a lead agency on development!

  7. Todd, I agree, this is brilliant and yes there are a few details that I would also question. However, for me the bigger issue is who would champion such an approach? You know all about turf battles which is a big reason for the incoherent mess we currently find ourselves in. How do we move this ball down the field?

  8. Syed Ahmed Khan :

    Optimization and reorganization of any organization is prerequisite for dynamic, vibrant and successfully org. it is long due to reorganize international organizations as per the changing new challenges on the world. However it would be better to handover the security issue to relevant department rather than associating it with development organization. It seems putting cart ahead of bull. Development automatically ensures security. Anyhow, if security is more important than global development then instead of putting NSC a locak org why not putting Global Security council (GSC) under the leadership of USA government to make it more representative/digestive and keep NSC for internal/local assignments. As per ROI is concerned who is the guarantor in development process? Many development organizations use to loss resources due to lack of ROI guarantee by concerned parties. Assurance of ROI will automatically make development bank of America or such kind of development org an efficient one. Lack of ROI assurance simply means providing loan and financial supports to nonperforming business houses and wasting tax payers’ hard earned money. Here better ask the social engineers, technologist and parties concerned to develop organizational structure, workflow and efficient algorithms to ensure lossless development organization with assurance of ROI. Here ROI should not be considered only in monetary terms but any type should be realistic and on the ground NOT on the paper or philosophy only.

  9. Thanks, Todd, for a great beginning to an important discussion. I would add that the Administration needs to prioritize market-driven solutions, attract private capital and expertise, and use trade as a tool to stimulate economic growth. I’ve shared these thoughts in my post on the Initiative for Global Development blog: http://bit.ly/kbBldh

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