Foreign Aid and LDC Administration

1. Foreign Aid and LDC Administration Comparative and Multilateral Aid: The Intersection of Policy, Projects and Implementation

2. Five Page Proposal/Overveiw • Introduction and Project Statement • Literature Review • Major Hypotheses • Methodology Due: November 18, 2009

4. Foreign Aid As Foreign Policy?

5. The Shift to Projects Review- The Legacy of 1975

6. Quote: • ‘AID!’ the farmer cried. Look at you.... He pointed, sweeping his finger from one charred remembrance of a home to another. ‘Here is your American AID!’ The farmer spat on the ground and walked away.[i] • [i] Neil Sheehan, A Bright Shining Lie: John Paul Vann and America in Vietnam (New York: Random House, 1988), p. 562.

7. Vietnam: My Lai Massacre

8. CORDS: Origins of Project Mode in Bilateral and Multilateral Activities In May 1967 an organization known as CORDS—Civil Operations and Revolutionary Development Support—was formed to coordinate the U.S. civil and military pacification programs. A unique hybrid civil-military structure directly under general William C. Westmoreland, the COMUSMACV, CORDS was headed by a civilian, Ambassador Robert W. Komer, who was appointed as Westmoreland’s deputy. Current Version: COINS- Counter-Insurgency Strategy, the “Three D’s” or Whole of Government Approach to Foreign aid.

9. Winning Hearts and Minds: Gun Purchase Program

10. Domestic Management Systems and International Influences • Historical periods of budgetary and fiscal management: • 1975-1981: Basic Needs: CONDUCIVE TO PROJECTIZATION • 1981-1990: Structural Adjustment • After 1991: • Collapse of the Soviet Union • “Clash of civilizations” • September 11, 2001

11. Review: Second World as New Debtors- Structural Adjustment • Chad vs. Russia • Transitional States • Rise of Asia and blocks • Crisis in Asia and the return to debt management • Debt Crisis in U.S. and Europe: Different Rules • Projects Supplement Conditionality

12. Chad: A Symbol of Ethnic Conflict

13. Foreign Aid and Technical Assistance: Factors to Consider • The utility of the rational actor model for foreign aid • Impact of culture and values on Foreign Aid • Impact of Intellectual systems and ideologies influences and beliefs • Impact of Standard Operating Procedures • The Impact of the Project Model on the Foreign Aid Process

14. The Context of Project Management: Debates • The Importance of the Market The end of the Command Economy? The concepts of market and productivity (1989) • International systemic hegemony and competition within international markets • Complementarity problem and origins of capital • 1999-2009 Fear of Market failure?

15. Market Failure Models

16. The Debate • The World Economic Regime • World Market: Only game in Town? • Questions of conflict: pluralist vs. hegemonic models in the post-war world • Economic change vs. political development • Governance (democracy) a pre-requisite? • Impact of world economy on Domestic Economies • Projects focus on Entrepreneurialism and credit (micro)

17. World Markets

18. Development of Underdevelopment Reminder- Changing Terms • Non-Western World • Developing areas or nations • Third World • Southern Tier States • LDCs • UDCs • Transitional States? • Immerging Markets

19. Foreign Aid vs. Technical Assistance: The Project Mode • Economic Projects: Current bias to Security and international trade • Democracy and Governance Projects and Nation Building • Sectoral Projects: Back to the future- Get the LDC economy back to the 1950s (Agriculture, Health Food, Education) • Dependent development/Emerging Markets- Is it dependent and is it development?

20. The Project Mode • Limited Time • Limited Tasks • Limited Funding

21. The Project Mode: Not Simple

22. The Goal?

23. Foreign Aid: Change of Focus THE PROJECT CYCLE: THE PROCESS

24. Mini-Discussion What will you be doing two years from now?

25. Monday Morning 8:15 1. Get a cup of coffee (If you drink it) • Start your computer • Check your e-mail • What then?

26. The U.S. Foreign Aid Process: Development Assistance Programs (DAPs) Planning Budgeting Ongoing Projects Office of Management And Budget (OMB) Design Approval Legis- lation Foreign Policy Implementation Evaluation LDC Needs Reporting Budget Submissions Congressional Presentation (CP) Appropriation Operational Year Budget (OYB) Host Country Agency Policy Global Sector Strategies Regional Strategies Research Strategy Management Objectives Project Identification Document (PID) Project Review Paper (PRP) Project Paper (PP) Pre- Implementa- tion Implementa- tion Evaluation Country Program Strategy (DAPI) Field of Concentration Strategy (DAPII) Project Reporting Project Performance Tracking (PPT); Financial Reporting Ex-Post Facto Evaluation Prior Evaluation Financial MANAGEMENT Programming INFORMATION Management Reports Implementation SYSTEM External Needs Program Support Data Bank (CPDB, PAIS, DIS, ESDB) Personnel Administration Support Database for Future Decisions, Policy Lessons Learned Evaluation Criteria

27. Blueprint Approach to Development Planning Pilot Project Researchers Tested Models Planner Project Blueprints Actual Change Versus Targeted Change Administrators Evaluation Researchers Actions Before-After Surveys Target Population

28. The Project Cycle • Analysis--collection of: • Social Analysis targeted groups: women, minorities, indigenous peoples • Economic Analysis--Cost Benefit • Institutional Analysis • Sustainability • Organizational Requirements • Recurrent Cost Implications • Human Skills Needed • Social Acceptance

29. 1. Design Project Objectives Achieved 3. Evaluation 2. Execution The Project Cycle Source: Project Management System, Practical Concepts, Inc., Washington, DC 1979.

30. The Project Cycle • Design • Identifying nature of problem and possible solutions--specific needs and desired changes • Appraisal • (Mandatory) data needed to prepare project plan

31. The Project Cycle • Analysis--collection of: • Prediction • Selection of preferred alternatives

32. The Project Cycle The Logical Framework: (LOGFRAME) • Analysis--collection of Information: • If-then conditions • AID moved away from logframe but not the Logical Model • Was replaced by a system based on identifying Strategic Objectives, Intermediate Results, Measurable Indicators, etc. • That system was recently "de-emphasized.“ • AID mission requests for funds were tied to promises of specific results -Baseline Analysis -Benchmarks • Results Framework system now is "under review."

33. Ten Minute Break

34. Project Management System Provides Tools to Support all Stages of the Project Cycle Logical Framework Performance Networks 1. Design Networks display performance plans over time Project Objectives Achieved 3. Evaluation 2. Execution Evaluation System Reporting System ACHIEVEMENT EXCEPTION Evaluations assess performance against plans and analyze causal linkages Progress indicators and formats for communicating project information Practical Concepts, Incorporated

35. Country Strategy Paper (DAP) Concept Paper (Sector: Country Context Paper Technical Proposal Project Identification Document (PID) Project Paper (PP) Program Agreement Preparation of Documents: Donor – USAID-A Paper Mill

36. Program Agreement (Donor to Country) PP (USAID) (PP = Project Paper) Technical Proposal (Contractor to Donor) Country Context Paper (Contractor to Country) Implementation Documents

37. The Project Cycle: Redeux

38. The Project Cycle • Implementation • Carrying out actions planned • Personnel: local (and foreign) • Physical and organizational Needs • Budget

39. Fragile Support Systems

40. The Project Cycle • Monitoring and Evaluation: • Linked to End of Contract and Verification of Objective indicators • Understanding what has happened and assessing changes and quality of change • Issue: sustainability regarding follow-on within the country and replicability from one country to another

41. Monitoring and Evaluation • Nature of Data: • Interview vs. survey • Impact vs. Delivery • Seat of the pants observation • "the old quick and dirty"

42. The problem of Measuring Project Goals: • Goals are to be limited and bounded • Specific activities are to be clearly defined and achieved • Short run success leads to successful evaluation • Short-term loop is five years • Implementation may not be Success

43. Monitoring and Evaluation • Nature of Data- Judgment: Evaluation vs. Assessment • Two views: • a. Learn from experience • b. Judge performance • Problem: judgment requires clear goals, in contradiction with learning • Problem: power of the expert

45. Monitoring and Evaluation • Nature of Data • Evaluation is a donor requirement • External activity • Targets blueprint activity (CPA) • Critical path analysis (Time based action) • PERT chart (Project Evaluation Review Technique) very technical, programmed • Evaluation often the need for more action

46. Monitoring and Evaluation • Nature of Data: • Evaluation as an end product: • Separate from implementation • Action pre-determined in design prior to evaluation • Separates evaluation from the on-going activity

48. Monitoring and Evaluation • Issues • Problem with Evaluation concept • Implementation suggests a finished product • Bureaucratic action is ongoing • Part of larger system with ambiguous boundaries • Assessment • Ongoing, part of implementation process

49. End of Project Status (EOPS) • Are of great importance and are primary target of project efforts and discussion • Projects are usually very complex • It is common to find that no single indicator is sufficient to describe the project achievement completely

50. End of Project Status (EOPS) • In determining EOPS we apply following principle: • If all EOPS conditions are satisfied, then there would be no credible alternative explanation • Except the purpose of the project (and the contract) has been achieved • Good project design will include the conditions that demonstrate successful achievement of the Project Purpose