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

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

Foreign Aid As Foreign Policy?

The Shift to Projects Review- The Legacy of 1975

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.

Vietnam: My Lai Massacre

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.

Winning Hearts and Minds: Gun Purchase Program

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

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

Chad: A Symbol of Ethnic Conflict

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

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?

Market Failure Models

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)

World Markets

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

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?

The Project Mode Limited Time Limited Tasks Limited Funding

The Project Mode: Not Simple

The Goal?

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

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

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

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

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

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

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

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

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

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."

Ten Minute Break

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

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

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

The Project Cycle: Redeux

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

Fragile Support Systems

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

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

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

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

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

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

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

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

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

End of Project Status (EOPS) Example PROJECT PURPOSE IN THE DEVELOPMENT OF AN OIL FIELD: Export oil EOPS 50,000 Barrels of crude/day transferred to tankers at nearest port; Quality of crude produced is competitive with that currently sold on world market. To verify, one needs a) the purity of oil, b) the world price, c) price sold, d) amount sold

Oil Field

M&E During Project Execution M & E Plan PHYSICAL EXECUTION PLANS (PEP) LOGFRAMES Design FINANCIAL EXECUTION PLANS (FEP) Purpose Evaluation Execution MONITORING & EVALUATION REPORTS PERIODIC & MID-TERM EVALUATIONS SPECIAL RESULTS ALERT

The Logical Framework NARRATIVE SUMMARY INDICATORS MEANS OF VERIFICATION ASSUMPTIONS GOAL PURPOSE OUTPUTS INPUTS

Example of Project Objectives GOAL Illnesses caused by impure drinking water reduced. PURPOSE Hygienic practices adopted by the rural population. OUTPUTS Clean water provided to 60% of villages in Northwest Region. Health workers trained. ACTIVITIES [or Inputs] Measured in Money

Example of Project Objectives ACTIVITIES 1.1. Choose sites for wells. 1.2. Organize village workers 2.1. Develop curriculum. 2.2. Recruit health workers. 2.3. Conduct training.

The Logical Framework NARRATIVE SUMMARY INDICATORS MEANS OF VERIFICATION ASSUMPTIONS GOAL PURPOSE OUTPUTS INPUTS

Horizontal Logic of the Logframe NARRATIVE SUMMARY INDICATORS MEANS OF VERIFICATION ASSUMPTIONS GOAL PURPOSE COMPONENTS ACTIVITIES

The Means of Verification Objectives Observable Verifiable Indicators Means of Verification (MOV) Hierarchy of Objectives Indicators Sources of information Method for data collection Agency responsible for data collection, analysis, and dissemination (information producer) Method for analysis of data Frequency Application (expected uses) Reporting format (letter, written report, oral presentation, etc.) Circulation (expected information users)

Physical Execution Plan Component/ Activities/Tasks Time Product Responsibility 1. Component a. Activity b. Activity c. Activity 2. Component a. b. c... 7 units 3 units Construction Unit Technical Support Unit

Appropriate Technology

Next Week Foreign aid Dealing with Donors Coping with Clients

Tamryn Klitgaard, Sri Sri, Kristen Klitgaard, and President Robert Klitgaard Claremont Graduate School

Discussion of Books: Klitgaard, Tropical Gangsters Short Precise of book Strengths, weaknesses, critique Compare to earlier reading What else have you been reading? Picard, Groelsema, et. al. Picard and Buss, A Fragile Balance? Lancaster