US Foreign Aid Meeting the Challenges of the

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US Foreign Aid: Meeting the Challenges of the 21 st Century US Agency for US Foreign Aid: Meeting the Challenges of the 21 st Century US Agency for International Development January 2005

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

Challenges are growing…. ► Post-Cold War context –Globalization and War on Terror ► Increasing Challenges are growing…. ► Post-Cold War context –Globalization and War on Terror ► Increasing ► Multiple demands foreign aid actors in foreign aid

Mission State Department and US Agency for International Development ► Create a more secure, Mission State 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 President’s National Security Strategy— diplomacy, defense and DEVELOMENT.

Creating a more secure, democratic and prosperous world ► First, we will strive to 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.

Create a more secure, democratic and prosperous world (cont. ) ► Third, in confronting 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.

Protect US national interests and advance peace, security and sustainable development ► Focus on 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.

National interests, advance peace, security, sustainable development (cont. ) ►A Stable and Democratic Afghanistan 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

National interests, advance peace and security, and sustainable development (cont. ) ►A more Effective 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.

Advance Peace and Security ►Regional Security—Avert and resolve local and regional conflicts to preserve Advance Peace and Security ►Regional Security—Avert 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

Advance Peace and Security (cont) ►Regional Security (cont) ► --Persian Gulf ► --Africa ► Advance Peace and Security (cont) ►Regional Security (cont) ► --Persian Gulf ► --Africa ► --Sudan ► --Western Hemisphere Counter-Terrorism—Prevent attacks against the US, our allies, and our friends, and strengthen alliances and international arrangements to defeat global terrorism.

Advance Peace and Security (cont) ►Homeland Security—Protect the homeland by enhancing the security of Advance Peace and Security (cont) ►Homeland Security—Protect the homeland by enhancing the security of our borders and infrastructure. ►Weapons of Mass Destruction—Reduce threat of weapons of mass destruction to the US, our allies, and our friends. ►International Crime and Drugs— Minimize the impact of international crime and illegal drugs on the US and its citizens.

Advance Sustainable Development and Global Interests ►Democracy and Human Rights— Advance the growth of Advance Sustainable Development and Global Interests ►Democracy and Human Rights— Advance the growth of democracy and good governance, including civil society, the rule of law, respect for human rights, and religious freedom. ►Economic Prosperity and Security— Strengthen world economic growth, development, and stability, while expanding opportunities for US businesses and ensuring economic security for the nation.

Advance Sustainable Development and Global Interests (cont. ) ►Social and Environmental Issues— Improve health, Advance Sustainable Development and Global Interests (cont. ) ►Social and Environmental Issues— Improve health, education, environment, and other conditions for the global population. ►Humanitarian Response—Minimize the human costs of displacement, conflicts, and natural disasters.

Promote International Understanding ►Public Diplomacy and Public Affairs —Increase understanding for American values, policies Promote International Understanding ►Public Diplomacy and Public Affairs —Increase understanding for American values, policies and initiative to crease a receptive international environment.

More Accountable Development Assistance? ► National Security Strategy>>>>>> Ø To clarify the challenges of More Accountable Development Assistance? ► National Security Strategy>>>>>> Ø To clarify the challenges of the “development” leg of the NSS Ø To apply the effectiveness principles of the MCA to our development assistance ► Effectiveness >>>>>>> ► Policy Coherence >>>> Ø To reduce conflict among multiple objectives/goals of bilateral foreign aid ► Strategic Mgt/Results >>> Ø To manage more strategically and get greater & clearer results

Five Core Operational Goals v Promote transformational development v Strengthen fragile states v Support Five Core Operational Goals v Promote transformational development v Strengthen fragile states v Support strategic states v Provide humanitarian relief v Address global, transnational and other special concerns

A New Approach to Foreign Assistance—Clarify Goals, Align Resources, Manage Strategically Targeted resources for A New Approach to Foreign Assistance—Clarify Goals, Align Resources, Manage Strategically Targeted resources for each goal Distinct approaches for each goal Different yardsticks for measuring results of each goal Country performance-based programming where it makes the most sense, and More centralized programming where that makes the most sense

Transformational Development Tailor assistance to the different opportunities presented by each sub-group: Threshold countries. 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. •

Strengthen Fragile States ► “Fragile states: ” umbrella term for failing, failed and recovering 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

Support Strategic States ► The Congress or the Administration identifies countries and sets levels 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 assistance—which may or may not include development.

Provide Humanitarian Assistance ► Available to all countries without conditions. ► Provide based on 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.

Address Global/Transnational Issues ► Selection of countries and resource levels based on severity of Address Global/Transnational Issues ► Selection of countries and resource levels based on severity of the problem and problem’s importance to U. S. security. ► Coherent vital. USG approach across agencies is ► Public/private partnerships particularly relevant in this goal area.

Improving Effectiveness Ø Aid effectiveness requires progress in two areas: ØSelectivity Ø Among countries Improving Effectiveness Ø Aid effectiveness requires progress in two areas: ØSelectivity Ø Among countries Ø Assistance priorities within countries ØPolicy coherence Ø Identification of clear goals Ø Integrated approaches across sectors and agencies for each goal

Development Assistance Strategy Economic Prosperity and Security Promote Transformational Development --Performers/Reformers --Fair Performers --Non-Reformers Development Assistance Strategy Economic Prosperity and Security Promote Transformational Development --Performers/Reformers --Fair Performers --Non-Reformers Strengthen Fragile States --Vulnerable --Crisis Support Strategic States Address Transnational Issues Democracy, Governance and Human Rights Social and Environment Issues Humanitarian Ass’t

Thank you. Arigato! Thank you. Arigato!




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