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PIA 2501 Foreign Aid in the 21 st Century. Our Weekly Foreign Aid Fix  "Saving Africa" "Saving Africa"

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Presentation on theme: "PIA 2501 Foreign Aid in the 21 st Century. Our Weekly Foreign Aid Fix  "Saving Africa" "Saving Africa""— Presentation transcript:

1 PIA 2501 Foreign Aid in the 21 st Century

2 Our Weekly Foreign Aid Fix  "Saving Africa" "Saving Africa"

3 The Issue Dealing with Donors and Coping with Donor Complexity

4 Norman Rush: Focus on Foreign Aid and Americans Overseas.  “Official Americans”  Instruments of Seduction”

5 Review: Who Gives Absolutely?

6 Where does the Money go?

7 Who Gives Per capita

8 The Foreign Aid Apparatus  Foreign aid created two new kinds of professionals, a donor official and a recipient program manager  Donor Officials Represent Their Home Country

9 The Problem Program Managers have to work with the international Donor system and represent the LDC country where they work.

10 The International Donor Regime  Private Foundations vs. Government Donors  Official Development Assistance (ODA)  Bilateral Donors vs. Multilateral Assistance

11 Multilateral Organizations  United Nations Development Programmme  UN Specialized Agencies:  UNICEF  ILO  FAO  UNESCO

12 FAO

13 UN System: Two Types  Funds and Programs- Report to Economic and Social Development Council  Specialized Agencies- Autonomous Boards

14

15 Basic Characteristics: UN System  Made up of components of all National Systems  Representative: Voting Reflects LDC majority (Except in Security Council0  Critics: Anarchy  Significant Patronage and Corruption

16 The World Bank System  International Monetary Fund: Bridging Loan Facility  International Bank for Reconstruction and Development- Infrastructure  International Development Association- Consessional  International Finance Corporation: Commercial Rates

17 Bank Headquarters- Washington D.C.

18 Characteristics of World Bank System  Block Voting  Dominated by Organization for Economic Construction and Development (OECD)  Debt Forgiveness Issue  Structural Adjustment Vehicle  Heavily Indebted Poor Countries (HIPC) Programs

19 Regional Banks  Asian Development Bank  African Development Bank  Inter-American Development Bank  European Bank for Reconstruction and Development

20 U.S. Agencies  U.S. Agency for International Development  Millennium Challenge Corporation  Office of the U.S. Global AIDS Coordinator  The President's Emergency Plan For AIDS Relief (PEPFAR)  State Department of Public Affairs  U.S. Agencies: Agriculture, Commerce, Labor  Defense Department (23% in 2013)

21 Foreign Aid The People: 3,700 In Government 1. Foreign Service Officer 2. Civil Service Officer 3. Personal Services Contract 4. Contractor/grant officer  PRT volunteers, Foreign Service Officers Glenn Guimond and Angela Gemza, outside the entrance of the U.S. Embassy in Baghdad, formerly the Republican Palace.

22 Pentagon

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

24 The Complicated World of the Federal Government  Goal: Hide or avoid restrictions on Personnel Ceilings  Jack Anderson and the “Washington Merry Go Round”  Examine Interagency transfer/Cooperative Agreement as an example

25 A Case Study  Interagency Cooperation with each other and with for Profit and Non-Profit Sectors

26 Historical Perspective-2  General Agreement between Other Agencies and USAID Agreement affirmed new partnership mechanisms to access USDA expertise: Participating Agency Service Agreements (PASAs) Resources Support Services Agreements (RSSAs)

27 The Spirit and Intent of RSSAs and PASAs  Within a USDA/USAID Partnership  Transfers can exist throughout the Federal Government  And between Agencies and Cooperants

28 Possible Foreign Aid RSSA Cooperants

29 Commonwealth Legacy  Colonial Development Corporation: 1929  Colombo Plan: 1955-1964  Commonwealth Fund for Technical Cooperation  Department for International Development (DFID)

30 U.K. Foreign Aid

31 Commonwealth Donors  Canadian International Development Corporation (CIDA)- Bridges French and English Speaking Countries  Australia- Ausaid (Focus on Asia)  New Zealand Aid

32 Countries that are both Donors and Recipients  India  China  South Africa  Brazil  Portugal

33 European Colonial Legacy  Ministry for Cooperation, Development and Francophony  GTZ- German Technical Assistance and German Department of Cooperation and Development  Dutch, Italian and Belgium Technical Assistance

34 Scandinavia: “Soft Donors”  SIDA- Swedish International Development Association  DANIDA- Danish International Development Association  NORAD- Norwegian Agency for Development Coorporation  FINNAID-Finnish foreign aid and cooperation

35 Danish International Development Agency

36 Role of Soviet Block  Soviet Union- 1950s. About 8% of World Foreign Aid  1970s and 1980s- Support for Liberation Movements and Clients  1990s to Present- Became Recipients of Foreign Aid

37 The Donor System  Soft Vs. Hard Systems  Trade vs. Aid  Debt Reduction/Debt Forgiveness  Governance Reform vs. Interference  Information Technology  Multilateralism vs. Unilateralism

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39 Goals: 2015  Ostensibly, the goals of foreign aid in 2013 remain what they were more than half a century ago. (Humanitarian, Governance and Economic and Social Development  However, Issues and Perceptions have changed and are Changing  Critics (The Dead AID Crowd) Say aid cannot address issues of poverty

40 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

41 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

42 The Problem

43 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.

44 USAID official Jerry Cashion (wearing hat) speaks to the class

45 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

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

47 Products and Foreign Aid

48 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.

49 Mali Village

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

51 What does this have to do with Foreign Aid?  Final Thoughts Final Thoughts

52  Discussion


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