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PIA 2528

PIA 2528. Foreign Aid Donors and Local Governance The International Dimension. Foreign Aid: Terms. International Assistance Foreign Aid- Loans vs. Grants Technical Assistance- Contracts Bilateral vs. Multi-lateral. Foreign Aid vs. Technical Assistance. Current bias to international trade

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PIA 2528

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  1. PIA 2528 Foreign Aid Donors and Local Governance The International Dimension

  2. Foreign Aid: Terms • International Assistance • Foreign Aid- Loans vs. Grants • Technical Assistance- Contracts • Bilateral vs. Multi-lateral

  3. Foreign Aid vs. Technical Assistance • Current bias to international trade • Governance and Nation Building • Millennium Challenge Account • Back to the future • Get the LDC economy back to the 1950s • Dependent development • Is it dependent and is it development?

  4. Foreign Aid vs. Technical Assistance • The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics • Impact of culture • Corruption, clan and ethnicity • Clans in Somalia and taxi drivers in Washington • Impact of Intellectual systems and ideologies influences and beliefs • Impact of Standard Operating Procedures

  5. Divisions Within the World • Before 1989 • North: Industrialist/ Developed Agriculture • Regime Type Democratic or not • Socialist vs. Capitalist • South: LDC limited agric. Industry • Underdeveloped Socialist or primitive capitalist • Crony capitalism • Patron-client

  6. Divisions Within the World • Today • Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states vs. “Everybody else” • Millennium Challenge Account- Choose 15 poor, most market friendly countries.

  7. Administrative Reforms The New Orthodoxy In Foreign Aid

  8. Administrative Reforms • Stabilization and Conditionality Requirements- Free Trade and Open Currency Public Sector Reform

  9. Administrative Reforms Reform of the bureaucracy a. Cutback the civil service the infamous 19% first cut b. Individual Consultants and Contractors work with investments and the service/commercial sector

  10. Administrative Reforms 1. Strategic Planning and Management 2. Deregulation 3. Performance Management 4. Merit Recruitment 5. Decentralization: Development of Local Government and Support for Civil Society

  11. Multilateral Issues: An Overview • The Problem of Debt • Stabilization vs. Conditionality • Public Sector Reform Policy Reform • IMF vs. World Bank vs. Bilateral Donors vs. UNDP • Bridging Loans • Sectoral Loans and Grants • Project Grants • International Requirements vs. domestic political response

  12. Concepts and Terms • Neo-Orthodoxy • Heterodoxy • Stabilization • Conditionality • Public Sector Reform

  13. Major International Relations Terms • International Relations • Structural realism; realpolitik • Balance of power • Bipolarity vs. Multi-polarity • Transnationalism

  14. Major International Political Economy and Development Terms • Political Economy • Hegemony • Dependency Theory • Structuralism • Regime • Indigenization • Complementarity • Import Substitution • Dependent Development

  15. Ghana Democracy and Governance Program

  16. USAID Ghana Activities • Economic Growth • Health • Basic Education • Democratic Governance

  17. Ghana USAID Activities • Source: USAID/Ghana Country Strategic Plan (2004-2010) • Date Published: May 2003

  18. USAID Country Plan-Ghana • Seek eligibility for Millennium Challenge Account Investment (poor, per capita income below $1,415) • Qualify- Good governance, market friendly-16 indicators • Goal: Support Accelerated Economic Growth • In place in 15 countries, 2005 or 2006 • Fully up and running, 2008 at $5 billion per year • Focus: Infrastructure

  19. USAID Country Plan-Ghana • Democratic Governance: SO 5 (Strategic Objective) • Note: Currently no focus on civil service reform • Two components: National and Local

  20. Ghana Democracy and Governance-National Level • Historically- Electoral Processes. • Legislative Reform: Long term PSC (Personal Services Contractor- Legislative Specialist) • National Civil Society Development

  21. Local Level: Democracy and Governance Source: ASSESSMENT REPORT: “Government Accountability Improves Trust” (GAIT) Date: December 8, 2003 Non-Competitive Contract: Public Administration Service

  22. Assessment Team: Mixed Team • Kwesi Appiah: Ghana Consultant • Robert J. Groelsema: USAID Washington (D&G) • Avril Kudzi: USAID Ghana (D&G) • Ted Lawrence: USAID Ghana (Legislative Specialist) • Elsie Menorkpor (USAID Ghana (Education Specialist) • Louis A. Picard (Team Leader)

  23. Decentralized Governance: Status • Current Contractor: Cooperative League of the United States of America (CLUSA) • Operates in the U.S. as National Cooperative Business Association • Assessment Report: Submitted December 8, 2003

  24. New Grant: Cooperative Agreement- 2004-2007 • RFA (Request for Application) published December 18, 2003 (Competitive Bid) • Applications Closed: February • Grant Awarded: Estimate- April, 2004 • 3-6 year grant up to $11 million

  25. Goal of GAIT* • Promote Partnership between Civil Society Organizations and Local Government • Institutional Structure: Creation of District Level Civic Unions to facilitate communication • Concern: Sustainability of structures after project completed *Government Accountability Improves Trust

  26. Nature of GAIT Activities • Training and Workshops • Technical assistance to Civic Unions and Local Governments • Support public (town hall) style meetings • Key: Activities support interface of LG and CSOs

  27. Decentralized Governance and E-Governance • Leland Initiative Money: Ended in 2003. Two or three centers established. Not clear that this was mission priority • Assessment Report: Recommended Local Government/Civil Society “One Stop Shop” for dissemination of information • Possibly Operated by Civic Unions

  28. E: Governance • Tele-cottage Model- widely used in Demnets (Democratic Network Organizations) in Eastern Europe • Technical Assistance (poss. Peace Corps volunteer) • Simple, on line publication and education programs (Logon- South Africa)

  29. E-Governance • simple publications, posters, public information presentations • simple software programs designed to demonstrate basic principles of governance • Includes the use of advocacy, information rights, the functioning of district government bodies and administrators and the functioning of committees

  30. Other Donors: Civil Service Reform UNDP- Normally bids, provides technical assistance World Bank- EOP (Expression of Interest) invitation to bid (RFP) DANIDA (Denmark), CIDA (Canada), DFID- (UK), GTZ (Germany) interested in Governance Private Foundations: McArthur, Gates, Ford Foundation- re. E-Governance

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