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

2. 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

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

4. Foreign Aid: Terms International Assistance
Foreign Aid- Loans vs. Grants
Technical Assistance- Contracts
Bilateral vs. Multi-lateral

5. 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?

6. 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

7. 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

8. 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.

9. Administrative Reforms
The New Orthodoxy
In Foreign Aid

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

11. 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

12. 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

13. 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

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

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

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

17. Democracy and Governance Program
Ghana
Democracy and Governance Program

18. USAID Ghana Activities
Economic Growth
Health
Basic Education
Democratic Governance

19. Ghana USAID Activities
Source: USAID/Ghana Country Strategic Plan ( )
Date Published: May 2003

20. 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

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

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

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

24. 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)

25. 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

26. 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

27. 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

28. 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

29. Decentralized Governance and E-Governance
Leland Initiative Money: Ended in 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

30. 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)

31. 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

32. 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