PIA 2096/2490 Foreign Aid Capstone and Topics Course

Foreign Aid Dealing with Donors and Coping with Complexity

The Problem Program Managers have to work with the international Donor system The Rodney Dangerfield syndrome

Donors and program management  A weak and unstable LDC bureaucracy time and time again would come up against the donor community’s massive pool of well qualified people and complicated bureaucratic process

Donor Priorities  Particularly during the cold war, corrupt countries often seem to receive the lion’s share of foreign aid.  Donor Client relationships part of Dependency patterms

Program Managers  Recipients often cannot say no to aid even when the recurrent maintenance revenue requirements cannot be met.  Foreign aid failure rates are disturbing.  Recipients need to say no.

The Foreign Aid Apparatus  Foreign aid created two new kinds of professionals, a donor official and a recipient program manager

Dealing with Donors 1. Understand the Donor Language 2. Understand the Donor’s Documents 3. Understand the Donor’s Rules 4. Understand soft as well as hard donors 5. Understand the Sustainability Problem

Coping with Expatriates  Understand the internal Organizational Imperative  Be Aggressive and a “Hard” Recipient  Understand hidden agendas, Italian Computers, Danish Bacon

Qualifications in Mali  The project was designed to assist poor villages excluded most of the villages in Mali. When he asked how many micro-credit loans were available in one Mali village, the response was “None, the village does not qualify.”  In order to qualify for the credit, villages had to have village associations. Only the better off villages, he added, had village associations.  The lesson to be learned from this is that foreign aid often does not assist the poorest of the poor and sometimes makes matters worse for them.

Reference  John Madeley, When Aid is No Help: How Projects Fail and How They Could Succed (London: Intermediate Technology Publications, 1991).

Foreign Aid The People: 3, Foreign Service Officer 2. Civil Service Officer 3. Personal Services Contract

The People: Tens of Thousands 1. Project Coordinator 2. Team Leader 3. Contractor 4. Grantee/Sub-Grantee 5. Home Office Backup 6. TDY- in the Field

The Complicated World of the Federal Government  Goal: Hide or avoid restrictions on Personnel Ceilings  Examine Interagency transfer as an example

The Spirit and Intent of RSSAs and PASAs Within a USDA/USAID Partnership Transfers can exist throughout the Federal Government

Historical Perspective  USDA and President Truman’s “Point Four” Program administered the agricultural training and technical assistance programs  1950, Technical Cooperation Administration (TCA) created Predecessor to USAID

Historical Perspective  1955, International Cooperation Administration (ICA) All foreign economic development efforts were consolidated USDA expertise and institutional resources were still critically needed  As a result, ICA and USDA drew up a major agreement to facilitate cooperation in technical assistance, training, and information dissemination

Historical Perspective  Passage of the Foreign Assistance Act of 1961 and the creation of USAID A new General Agreement in 1966 laid the framework for cooperative relationships

Historical Perspective USAID recognized "…the unique personnel resources, capabilities and experience of the Department”  sought to use this expertise through cooperation USDA recognized "...its responsibility, within its authority, to contribute toward U.S. foreign policy by participation in foreign assistance programs"

Historical Perspective  General Agreement between USDA and USAID Based on the premise of a partnership between USDA and USAID  emphasis on joint planning, coordination and consultation

The Agreement The agreement is not like a contract  establishes operational guidelines and a spirit of cooperation to link the institutional resources of two government agencies in accomplishing U.S. foreign assistance goals

Historical Perspective  General Agreement between USDA and USAID Agreement affirmed new partnership mechanisms to access USDA expertise: Participating Agency Service Agreements (PASAs) Resources Support Services Agreements (RSSAs)

Authorizations for PASAs and RSSAs  Sections 621(a) and 632(b) of the Foreign Assistance Act, 1961 Enables USAID officers to secure "technical assistance...in the field of education, health, housing, or agriculture..." by utilizing "…to the fullest extent practicable, the facilities and resources of the Federal agency or agencies with primary responsibilities for domestic programs in such fields..."

Authorizations for PASAs and RSSAs  Amendment to Section 621of the Foreign Assistance Act Participating Agency resources must be particularly or uniquely suitable for technical assistance; Are not competitive with private enterprise; and Can be made available without interfering with domestic programs

Authorizations for PASAs and RSSAs  Economy Act Requires both the Secretary of Agriculture to certify that assisting USAID is in the best interest of the Government and USAID's Administrator to ascertain that "…the ordered goods or services cannot be provided as conveniently or as cheaply by a commercial enterprise."

Authorizations for PASAs and RSSAs  Office of Management and Budget’s (OMB) Circular A-76 USAID can enter into PASAs or RSSAs with USDA only if the following conditions are met:

RSSAs and PASAs  USDA resources and expertise are used for technical assistance;  USDA can provide technical assistance better than USAID, the private sector or another Federal agency  USDA has a formal program for managing excess personnel capacity that allows staff to provide assistance under RSSAs and PASAs; and  USDA services are not competitive with private enterprise.

Authorizations for PASAs and RSSAs  Office of Management and Budget’s (OMB) Circular A-76 Before a RSSA or PASA can be approved and issued, a detailed justification must be provided on USDA's unique suitability, and all other A-76 requirements must be met

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  USAID’s Handbook 12  Defines PASAs as agreements with other Federal agencies for specific services or support tied to a specific project goal and performed within a definite time frame

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  PASAs Normally issued by Missions for support outside the U.S., but can be used to carry out a specific goal or goals of an AID/W project Effectively the two terms have become interchangeable

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  RSSAs Agreements funded in AID/W for continuing general support assistance, usually provided in an AID/W office, and have no specific, readily measurable goals to be accomplished within a set time period  In the 1990's, most USDA/USAID agreements have been RSSAs

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  Intent and Spirit of PASAs and RSSAs Strengthen the partnership between USAID and USDA by fully utilizing Departmental competence, resources and experience and exchanging critical information and knowledge to benefit both agencies

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  Staff Responsibilities RSSA and PASA staff should have a clear understanding of USDA's unique capabilities as the world's largest source of technical expertise n agriculture, natural resources management, and related areas RSSA staff should cooperate and interact with USDA agency employees having mutual interests whenever possible

“Spirit and Intent” & Responsibilities in Implementing PASAs and RSSAs  Staff Responsibilities Sharing RSSA knowledge with Departmental officials can positively impact U.S. agriculture and USDA goals  can ultimately advance development efforts

RSSA Human Resources  USDA hiring for RSSA positions: Recruits from Departmental agencies and land-grant university network first, drawing on its unique pool of expert resources nationwide When USDA makes decision, USAID is asked to concur

RSSA Human Resources  USDA hiring for RSSA positions: Once appointed, RSSA employees receive technical advice and guidance from their USAID Project Officer, but their official supervisor is at USDA

Human Resources RSSA performance appraisals are determined by the USDA supervisor  With input from USAID Project Officer RSSA employees' annual work plans should also be developed consistent with USDA policies and objectives

In Summary  Through collaboration and cooperation, benefits will continue for U.S. foreign assistance as information and knowledge flows from USDA to USAID Equally important - benefits will flow from USAID to the Department

In Summary  RSSA employees play a crucial role in facilitating this exchange and are key to sustaining the long-standing partnership between the two agencies