1. Contemporary Foreign Aid Issues
PIA 2096
Foreign Aid Capstone Seminar

2. 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 The book was first published in 1853.

3. 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, (New York: Henry Holt & Company, 2002), p. 34.

4. 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.

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

6. 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

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

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

9. 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.

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

11. 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

12. 2006 Debate: Should USAID Disappear? Three influences
Impact of September 11
HIV/AIDS
Millenium Challenge Account

13. The Change- 3
Changing Motives

14. 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?

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

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

17. 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

18. 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

19. 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

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

21. 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

22. Change- 5
Continuities and Change in Financing

23. Financing Mechanisms Contracts IQCs Cooperative Agreements
Projectization of Foreign Aid

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

25. Change-7
Contemporary Foreign Aid

26. 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?

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

28. 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

29. 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.

30. 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