Contemporary Foreign Aid Issues PIA 2096 Foreign Aid Capstone Seminar

Historical Quote Mrs. Jellyby...is a lady of very remarkable strength of character [who] is at present…devoted to the subject of Africa, with a view to the general cultivation of the coffee berry-and the natives-and the happy settlement, on the banks of the African Rivers, of our superabundant population…educating the natives….[i] [i] Charles Dickens, Bleak House (New York: Signet, 1964), pp. 49-50. The book was first published in 1853.

Quote: North Africa, 1943 “Behold, we the American holy warriors have arrived….we have come to set you free.”[i] [i] U.S. script of radio broadcast from the U.S.S. Texas, October, 1943 quoted in Rick Atkinson, An Army at Dawn: The War in Africa, 1942-1943 (New York: Henry Holt & Company, 2002), p. 34.

The Problem: Foreign Aid Goals, 1950 1. They were the reduction of material poverty through economic growth and the delivery of social services. 2. The promotion of good governance through democratically selected, accountable institutions.

Goals: 1950 3. Reversing negative environmental trends through strategies of sustainable development.

Goals: 2006 Ostensibly, the goals of foreign aid in 2006 remain what they were more than half a century ago. However, Issues and Perceptions have changed and are Changing

Overall Change Theme: The Relationship between Academics and Practitioners Issue: Should academics also be practitioners?

Patterns 1950s- Very close 1960s-70s- Split because of Vietnam 1980s- Close Again- Structural Adjustment 1990s and esp. since 2001 Split again 2006- Deep Cleavage

The Change-1 The Reduction of Poverty Ultimately, however, as a number of economists have noted, “universal models of growth [did] not work well.” Quote David Sogge, Give and Take: What’s the Matter with Foreign Aid? (London: Zed Books, 2002), p. 8.

Reduction of Poverty Recognized empirically by academic studies Argued ideologically by Anti-Keynesian Economists Reflected in State Department Changes

Change -2: The Merging of USAID and State 1. Rice Announcement- Gradual process: Integrating USAID into State Department 2. Merge defense and foreign aid (Security Imperative) 3. Focus on regime change, governance and security issues 4. Decline in focus on economic and social development

2006 Debate: Should USAID Disappear? Three influences Impact of September 11 HIV/AIDS Millenium Challenge Account

The Change- 3 Changing Motives

Three Views of Foreign Aid 1. Part of Balance of Power- Carrot and Stick Approach (based on exchange Theory) 2. Commercial Promotion: Focus on International Trade 3. Humanitarian Theory: Moral Imperative (Missionary Factor) Where are we now?

Dominant Motive Carrot and Stick Approach- Based on Exchange Theory Back to Balance of Power Primary focus: U.S. Security

Change-4 Increasing Gap between Academics and Practitioners Fewer Academics are practitioners, fewer practitioners write Focus: For Profits & Non-Profits

Change 4- Old Patterns Long Term Cooperative Agreements (1980s) Land Tenure Center University of Wisconsin Center for Disease Control in Atlanta National Association of Schools of Public Affairs and Administration

1985- USAID Cooperative Agreement: Performance Management Project National Association of Public Affairs and Administration DPMC­ Department of Agric. IDMC­ Univ. of Maryland Director: Dr. Louis A. Picard

Performance Management Project Research Rondinelli­ -Foreign Aid Kerrigan and Luke-­ Training Hague and Finsterbusch­-Orga-nizational Development Kiggundu-­ Managing organizations White­ Program Management White­- Policy Reform Brinkerhoff­ strategic Management Esman-Development Management

Field Operations INCAE- Sub-Contract to Catholic University, Paraguay (W. Schaeffer) Swaziland- Rukudzo Murapa Indonesia- David Korten Francophone Africa: David Gould Guinea- Robert Groelsema

Technical Assistance Policy Reform S. Morrison, R. Moore Guatamala: Barry Ames, Brazil Management FDMS-Gould-sub-contract U. of Pittsburgh SADCC Study­ J. Montgomery, R. Klitgaard, et.al. Business Management- J. McCullough Decentralization: Ed Connerley and Elinor Ostrom

Change- 5 Continuities and Change in Financing- 2006

Financing Mechanisms Contracts IQCs Cooperative Agreements Projectization of Foreign Aid

Grants and Contracts Non-Profits- Grants and Sub-Grants- Function like Contracts Contracts- For Profits- Project Driven

Change-7 Contemporary Foreign Aid

Foreign Aid and Technical Assistance-2006 Back to the future Get the LDC economy back to the 1950s Integration: Dependent development Is it dependent and is it development?

Foreign Aid and Technical Assistance-2006 Current bias to international trade Governance and Nation Building Merging of international assistance and security

Foreign Aid and Technical Assistance- 2006 Issues Impact of culture vs. Universal Values Corruption, clan and ethnicity Clans in Somalia and taxi drivers in Washington Impact of Intellectual systems and ideologies influences and beliefs- Economic and Religious Projects and Standard Operating Procedures

Historical Quote With God’s help, we will lift Shanghai up and up, ever up, until it is just like Kansas City.[i] [i] American Missionary quoted byJohn Franklin Campbell, The Foreign Affairs Fudge Factory (New York: Basic Books, 1971), p. 178.

Where are We now? Should we focus on the “Good” How Fair are our authors? Are we missing something in our reading and discussion? What is the reality of Foreign Aid in 2006