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PIA 2528

PIA 2528. Foreign Aid Donors, Governance and Civil Society. Foreign Aid Prior to 1948. 18 th Century sub-market loans and gifts of exchange 19 th Century Origins- Non-profits and Faith Based organizations

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PIA 2528

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  1. PIA 2528 Foreign Aid Donors, Governance and Civil Society

  2. Foreign Aid Prior to 1948 • 18th Century sub-market loans and gifts of exchange • 19th Century Origins- Non-profits and Faith Based organizations • World War I Humanitarian Aid- Governmental and Non-Governmental: Herbert Hoover’s American Relief Administration

  3. American Relief Administration, 1921

  4. Roosevelt Legacy • Latin America Programs including Pan American Highway • Technical Assistance- Independent Countries- Africa, Middle East and Asia • Lend Lease, Food and Non-Military Support

  5. Lend Lease Act of 1940 • Military and Civilian Assistance • VIDEO • FDR’s “Arsenal of Democracy”

  6. Truman Programs: 1945-1953 • Greece and Turkey • Marshall Plan • Point 4 • Creation of a Standing Agency

  7. Foreign Aid Goals: Political,Social and Economic • Humanitarian- Prior to WWII • Economic- Growth 1950s • Social- Basic Needs- 1970s • Policy Reform and State Restructuring- 1980s • Human Resource Development- 1990s (From 1990 World Development Report to Millenium Development Goals) • Governance 1990s • Security Support- 2000s

  8. Foreign Aid Goals • Layered in like Barnacles on a ship

  9. Foreign Aid: Terms-Review • Official International Assistance vs. Private Assistance • Foreign Aid- Loans vs. Grants • Technical Assistance- Contracts vs. Grants • Bilateral vs. Multilateral

  10. Millennium Development Goals

  11. Image vs. Reality

  12. Or?

  13. Governance: Reforms and Democracy The New Orthodoxy In Foreign Aid

  14. 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

  15. North vs. South?

  16. Divisions Within the World • Today • Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states and Emerging States vs. “Everybody else” • Millennium Challenge Account- Choose 15 poor, most market friendly countries. • Millennium Development Goals- UN and Human Development • Security and “Counter-Terrorism”- Religion and Rejection of “Western” Model

  17. Defense, Diplomacy and Development

  18. Foreign Aid By Volume

  19. More Major International Political Economy and Development Terms • Political Economy Tie Ins (Discussion) • Hegemony • Dependency Theory • Structuralism • Regime • Indigenization • Complementarity Problems • Import Substitution • Dependent Development

  20. Foreign Aid by Share

  21. Multilateral Issues: An Overview • The Problem of Debt • Stabilization vs. Conditionality • Public Sector Reform Policy Reform • Pressures Towards Democratic Governance • The Security Debate

  22. Provincial Reconstruction Teams (PRT’s)

  23. Major International Relations Terms • International Relations- Alternative Views • Structural realism; realpolitik • Balance of power • Bipolarity vs. Multi-polarity (Uni-polar) • Trans-nationalism • Counter-Terrorist Coalitions

  24. Special Forces in Sahara Desert

  25. Multilateral Issues • IMF vs. World Bank vs. Bilateral Donors vs. UNDP • Bridging Loans • Sectoral Loans and Grants • Project Grants • International Requirements vs. domestic political response

  26. A View from the South

  27. Concepts and Terms: 21st Century • Neo-Orthodoxy • Heterodoxy • Stabilization/Reconstruction • Currency Reform: Auctions • Conditionality • Public Sector Reform(Policy Reforms)

  28. A Target for Auction

  29. A Revisionist View

  30. What is the problem? Discussion

  31. Foreign Aid vs. Technical Assistance: Summary • Current bias to international trade: Free Trade? • Governance and Nation Building: Democracy? • Millennium Development Goals- Human Resource Development? • Millennium Challenge Account: Back to the future? • Get the LDC economy back to the 1950s • Dependent development • Is it dependent and is it development?

  32. Rumanian Cartoon

  33. Foreign Aid vs. Technical Assistance (People) 1. Impact of culture on Change a. Corruption, clan and ethnicity b. Clans in Somalia and taxi drivers in Washington c. Debates about Privatization 2. Impact of Standard Operating Procedures (SOPs) 3. The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics for Clear Decision-making 4. Impact of Intellectual systems and ideologies influences and beliefs (Clash of Culture vs. End of History)

  34. Privatization in LDCs

  35. Governance Reforms • Democratic Governance • Stabilization and Conditionality Requirements- Free Trade and Open Currency • Public Sector Reform • Rule of Law and Anti-Corruption

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

  37. Administrative Reforms: The World Bank Model   1. Strategic Planning and Management 2. Deregulation 3. Performance Management 4. Merit Recruitment 5. Decentralization: Development of Local Government and Support for Civil Society 6. Good Governance as Stability (Not Democracy)

  38. Bureaucratic Politics

  39. Problem of Efficiency

  40. The Criticism of Foreign Aid “Dead Aid” Dambisa Moyo VIDEO

  41. Coffee Break • Fifteen Minutes

  42. Ghana Democracy and Governance Program

  43. Ghana- West Africa

  44. Ghana Case Study of Civil Society Reforms Chapter 8, Foreign Aid and Foreign Policy: Lessons for the Next Half Century, (Picard, Robert Groelsema and Terry F. Buss, eds. (New York: M.E. Sharpe, 2008), pp. 146-172)

  45. Government Accountability Builds Trust (GAIT)

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

  47. Ghana Water Project

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

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