Foreign Aid Donors and Development The International Dimension PIA 2501 Foreign Aid Donors and Development The International Dimension

Logistics-1 March 24: Donors and Development: The International Dimension March 31: Structural Adjustment, Policy Reform and Public Private Partnerships April 7: No Class, Preparation for Presentations

Logistics-2 April 14: Group Reports, Distribution of Final Exam Questions. Course Evaluation April 21: Final Exams Due

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 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?

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

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

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.

Administrative Reforms The New Orthodoxy In Foreign Aid

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

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  

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

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

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

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

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

Democracy and Governance Program Ghana Democracy and Governance Program

USAID Ghana Activities Economic Growth Health Basic Education Democratic Governance

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

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

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

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

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

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)

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

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

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

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

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

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)

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

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