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

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

2. 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”

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

4. 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 President’s National Security Strategy—diplomacy, defense and DEVELOMENT.

5. 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.

6. 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.

7. 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.

8. 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

9. 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.

10. 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

11. 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.

12. Advance Peace and Security (cont) • Homeland Security—Protect the homeland by enhancing the security of our borders and infrastructure. • Weapons of Mass Destruction—Reduce the 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.

13. 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.

14. 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.

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

16. National Security Strategy>>>>>>>>>>> Effectiveness >>>>>>> Policy Coherence >>>> Strategic Mgt/Results >>> 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 More Accountable Development Assistance?

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

18. A New Approach to Foreign Assistance—Clarify Goals, Align Resources, Manage Strategically

19. 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.

20. 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

21. 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.

22. 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.

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

24. 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

25. Development Assistance Strategy

26. Thank you. Arigato!