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PIA 2528 Foreign Aid Donors, Governance and Civil Society
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Foreign Aid Prior to 1948 18 th Century sub-market loans and gifts of exchange 19 th Century Origins- Non-profits and Faith Based organizations World War I Humanitarian Aid- Governmental and Non-Governmental: Herbert Hoover’s American Relief Administration
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American Relief Administration, 1921
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Roosevelt Legacy Latin America Programs including Pan American Highway Technical Assistance- Independent Countries- Africa, Middle East and Asia Lend Lease, Food and Non-Military Support
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Lend Lease Act of 1940 Military and Civilian Assistance VIDEO FDR’s “Arsenal of Democracy”
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Truman Programs: 1945-1953 Greece and Turkey Marshall Plan Point 4 Creation of a Standing Agency
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Foreign Aid Goals: Political, Social and Economic Humanitarian- Prior to WWII Economic- Growth 1950s Social- Basic Needs- 1970s Policy Reform and State Restructuring- 1980s Human Resource Development- 1990s (From 1990 World Development Report to Millenium Development Goals) Governance 1990s Security Support- 2000s
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Foreign Aid Goals Layered in like Barnacles on a ship
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Foreign Aid: Terms-Review Official International Assistance vs. Private Assistance Foreign Aid- Loans vs. Grants Technical Assistance- Contracts vs. Grants Bilateral vs. Multilateral
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Millennium Development Goals
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Image vs. Reality
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Or?
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Governance: Reforms and Democracy The New Orthodoxy In Foreign Aid
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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
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North vs. South?
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Divisions Within the World Today Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states and Emerging States vs. “Everybody else” Millennium Challenge Account- Choose 15 poor, most market friendly countries. Millennium Development Goals- UN and Human Development Security and “Counter-Terrorism”- Religion and Rejection of “Western” Model
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Defense, Diplomacy and Development
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Foreign Aid By Volume
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More Major International Political Economy and Development Terms Political Economy Tie Ins (Discussion) Hegemony Dependency Theory Structuralism Regime Indigenization Complementarity Problems Import Substitution Dependent Development
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Foreign Aid by Share
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Multilateral Issues: An Overview The Problem of Debt Stabilization vs. Conditionality Public Sector Reform Policy Reform Pressures Towards Democratic Governance The Security Debate
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Provincial Reconstruction Teams (PRT’s)
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Major International Relations Terms International Relations- Alternative Views Structural realism; realpolitik Balance of power Bipolarity vs. Multi-polarity (Uni-polar) Trans-nationalism Counter-Terrorist Coalitions
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Special Forces in Sahara Desert
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Multilateral Issues IMF vs. World Bank vs. Bilateral Donors vs. UNDP Bridging Loans Sectoral Loans and Grants Project Grants International Requirements vs. domestic political response
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A View from the South
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Concepts and Terms: 21 st Century Neo-Orthodoxy Heterodoxy Stabilization/Reconstruction Currency Reform: Auctions Conditionality Public Sector Reform (Policy Reforms)
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A Target for Auction
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A Revisionist View
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What is the problem? Discussion
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Foreign Aid vs. Technical Assistance: Summary Current bias to international trade: Free Trade? Governance and Nation Building: Democracy? Millennium Development Goals- Human Resource Development? Millennium Challenge Account: Back to the future? Get the LDC economy back to the 1950s Dependent development Is it dependent and is it development?
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Rumanian Cartoon
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Foreign Aid vs. Technical Assistance (People) 1. Impact of culture on Change a. Corruption, clan and ethnicity b. Clans in Somalia and taxi drivers in Washington c. Debates about Privatization 2. Impact of Standard Operating Procedures (SOPs) 3. The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics for Clear Decision-making 4. Impact of Intellectual systems and ideologies influences and beliefs (Clash of Culture vs. End of History)
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Privatization in LDCs
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Governance Reforms Democratic Governance Stabilization and Conditionality Requirements- Free Trade and Open Currency Public Sector Reform Rule of Law and Anti-Corruption
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Administrative Reforms Reform of the bureaucracy: Review a. Cutback the civil service the infamous 19% first cut b. Individual Consultants and Contractors work with investments and the service/commercial sector c. Privatization
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Administrative Reforms: The World Bank Model 1. Strategic Planning and Management 2. Deregulation 3. Performance Management 4. Merit Recruitment 5. Decentralization: Development of Local Government and Support for Civil Society 6. Good Governance as Stability (Not Democracy)
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Bureaucratic Politics
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Problem of Efficiency
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The Criticism of Foreign Aid “Dead Aid” Dambisa Moyo VIDEO
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Coffee Break Fifteen Minutes
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Ghana Democracy and Governance Program
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Ghana- West Africa
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Ghana Case Study of Civil Society Reforms Chapter 8, Foreign Aid and Foreign Policy: Lessons for the Next Half Century, (Picard, Robert Groelsema and Terry F. Buss, eds. (New York: M.E. Sharpe, 2008), pp. 146-172)
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Government Accountability Builds Trust (GAIT)
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USAID Ghana Activities Economic Growth Health Basic Education Democratic Governance
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Ghana Water Project
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Ghana USAID Activities Source: USAID/Ghana Country Strategic Plan (2004-2010) Date Published: May 2003
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Assessment Mission
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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
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USAID Country Plan-Ghana Democratic Governance: SO 5 (Strategic Objective) Note: Currently no focus on civil service reform Two components: National and Local
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Local Government Elections
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Ghana Democracy and Governance-National Level Historically- Electoral Processes. Legislative Reform: Long term PSC (Personal Services Contractor- Legislative Specialist) National Civil Society Development
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Local Level: Democracy and Governance Source: ASSESSMENT REPORT: “Government Accountability Improves Trust” (GAIT) Date: December 8, 2003 Non-Competitive Contract: Public Administration Service
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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)
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Decentralized Governance: Status Contractor: Cooperative League of the United States of America (CLUSA) Operates in the U.S. as National Cooperative Business Association-Non- Profit Assessment Report: Submitted December 8, 2003
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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
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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
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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 (E-governance)
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Link with Other Donors: Civil Service and Decentralization 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
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Ghana: Second Focus: Decentralized Governance and E-Governance Leland Initiative Money: Ended in 2003. Two or three centers established. Not clear that this was mission priority (Focus: e-Governance) Assessment Report: Recommended Local Government/Civil Society “One Stop Shop” for dissemination of information Possibly Operated by Civic Unions
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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)
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E-Governance
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E-Governance- 2
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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
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Impact of E-Governance Limited evidence of community based civil society groups strengthened Problem: Private Sector Programs often more utilized Conclusion: Maybe a Dumb idea
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Foreign Aid: Good Job Tonight? Foreign Aid and Security Danish Refugee Council VIDEO
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Discussion: What the Authors have to say? Where are we Now? What don’t we know? Can Governance be Promoted by Donors?
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Meet the Authors: Andre Brink, A Dry White Season Looking on Darkness André Philippus Brink (born 29 May 1935 in Vrede, RSA) is a South African novelist. He writes in Afrikaans and English and is a Professor of English at the University of Cape Town One of the “Sixtiers” with Ingrid Jonker (“Black Butterflies”) and Breyten Breytenbech)
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