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Posts Tagged ‘Millennium Challenge Corporation’

Guest Post: Richard Morford on the MCC as a Model for Foreign Aid Reform

Thursday, August 12th, 2010
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See the guest post below from Richard Morford, former Managing Director for Donor and Multilateral Relations at the Millennium Challenge Corporation (MCC).

What Foreign Aid Reform Can Learn from the Millennium Challenge Account

Richard A. Morford


The Millennium Challenge Account (MCA), the major experiment in reform of development assistance of the Bush Administration was designed to test whether bundling “lessons learned” over the past half century of foreign aid could yield greater development results.   It is still too early to do a full blown assessment of MCA performance and that of the Millennium Challenge Corporation (MCC) which administers the Account, but as the Obama administration and Congress undertake major reviews of foreign assistance, it makes sense to look at the experiences of this ongoing reform effort and see how they might inform the broader reviews currently underway.   Here are nine takeaways:

1.  Design for Purpose:  MCA was designed to help poor countries with relatively good political, economic and social policies “reduce poverty through growth”.  One of the strongest assets of MCC is that all staff members understand its mission.  Its objectives, governance and authorities were clearly spelled out in legislation to accomplish this quintessential development purpose.  There are many reasons why the USG provides foreign assistance beyond poverty reduction and development.  Humanitarian need, national security, and transnational threats are other compelling missions.  It is important to have clear mission statements for each.  Once the mission is clear, governance, authorities and modalities should differ based on how best to meet each purpose.

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CGD Defends Untied Aid

Thursday, August 12th, 2010
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On Monday, MFAN member Sarah Jane Staats – director of policy outreach at the Center for Global Development – outlined three reasons why Senator Jim Webb’s (D-VA) calls for putting a stop to Millennium Challenge Corporation (MCC) funding to non-U.S. companies in Africa will not solve any of our economic or development problems.  Staats argues:

1. It’s bad development. Restricting overseas development contracts to domestic bidders – so-called “tied aid” – buys political support at home, but often costs more and is less effective.

2. Taxpayers pay more, but get less…Requiring the MCC to use only U.S. companies in regions where they could be more expensive, less effective, or may not exist, unduly constrains our aid dollars and ends up costing American taxpayers more money.

3. The MCC is not ExIm or OPIC. The U.S. Export-Import Bank (ExIm) and theOverseas Private Investment Corporation (OPIC) are designed specifically to help U.S. businesses invest overseas.

Staats reminds us that tying development assistance to U.S. companies is not only bad development, but it goes against the principle of ownership of aid that has popped up in the Obama Administration’s initiatives like Feed the Future and the Global Health Initiative.  Read the full piece here.

Aid Reform that Works: How Ownership, Partnership, Coordination, and Innovation Should be the Core of America’s New Approach to Development

Monday, July 12th, 2010
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Agricultural development

New approaches to aid over the last decade have transformed the lives of countless individuals struggling with poverty, battling disease, and seeking opportunities to build a better life.  The onset of these new approaches has sparked a debate on reform and how the U.S. can build on them to make foreign assistance more accountable and effective for the people we are trying to help and the U.S. taxpayers who generously support it.  To demonstrate principles of effective aid – and communicate what still needs to be done – MFAN canvassed its Partners to share cases in which a new, innovative way of thinking led to improving the livelihood of an individual, a community or a country.  The following success stories articulate some of the core principles – Ownership, Partnership, Coordination, and Innovation – that MFAN believes should provide the underpinnings of foreign assistance reform.

PMI in MozambiqueOwnership

The most effective way of ensuring long-term development is to allow recipients of aid to take the lead in designing and implementing their own development programs.  Country ownership is about donors being transparent and consultative, helping to build capacity over the long term, and supporting local efforts to take control of their own development.  This principle of aid effectiveness has become the cornerstone of reform efforts, but is also the most difficult to put into practice because it is dramatically different than the current U.S. model for the delivery of aid.  The success stories that follow demonstrate ownership in action and prove that country ownership is essential for development. 

  • Ethiopia halved malaria deaths in just three years (The Global Fund to AIDS, Tuberculosis and Malaria) – In 2005, the Ethiopian government, with support from the Global Fund, unveiled a strategy to deliver two mosquito nets to every family at risk for malaria.  By 2008, 20.5 million bed nets had been delivered, and 30,000 young women – two high school graduates per village – had been trained and mobilized to act as health advisors and to carry out on-the-spot malaria tests, made possible thanks to a new lightweight disposable kit.  The program shows strong roots of local initiative, leadership, and ground-up action.
    • Read more about Ethiopia’s grassroots health care initiative here.

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The Battle of the Logos

Wednesday, June 30th, 2010
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By Mark Green, Ambassador and Congressman (ret.)

I recently began posting a series of pieces with some of the reasons why I believe (a) America needs foreign assistance reform and (b) Conservatives should take up the cause.  Done right, foreign assistance can play a crucial role in our foreign policy. Unfortunately, the status quo isn’t “done right” or, at least, done as well as it could be.

Here are my first four reasons:

Reason 1: Our current foreign aid system is organizationally incoherent.

Reason 2:  We need to reform the system to make our precious taxpayer dollars go much further.

Reason 3: Foreign assistance reform is a great opportunity for Conservatives to reaffirm values and initiatives we care about. 

Reason 4: Simply put, Conservatives (and Republicans) have a long history of standing up for EFFECTIVE foreign assistance.

And now . . . Reason 5: The combination of fragmented authorities and overlapping bureaucracies in our current assistance framework is watering down public diplomacy efforts.

Foreign assistance is a crucial part of public diplomacy.  Secretary of State Hillary Clinton speaks eloquently about the need for “smart power” in these challenging times. Her predecessor, Condoleezza Rice, emphasized the ability for “diplomacy by deeds” to shape our image in far off lands. Whatever the terminology, the concept is straightforward: America enhances its image, and its prospects, when it is seen to be helping those in need.  Words are the currency of traditional diplomacy, but tangible deeds can be more eloquent than any cable or speech or public statement.

Here’s another way of looking at it: the late Jack Kemp, a Conservative hero to many (myself included), liked to say that “people need to know that you care before they care what you know.” Foreign assistance projects do just that, opening hearts and ears to the American message.

However, the deeds-based approach is only as effective as the messaging effort that follows it. We must make sure that people know the good work that is being done and that it ultimately comes from the American people. Unfortunately, our archaic patchwork of fragmented authorities and bureaucratic structures often undermines that effort.

These days, there are approximately 12 departments, 25 agencies and 60 separate government offices involved in administering foreign assistance.  With overlapping jurisdictions, conflicting rules and procedures, and differing organizational cultures, they often confuse those they mean to serve.  They may even unintentionally mislead the public into thinking that one or more of them are independent or even non-governmental. After all, what logical government would use handfuls of different agencies to work in a single country . . .perhaps even on a single project?

One symptom of this bureaucratic labyrinth is what I refer to as the “battle of the logos.” And it’s one of the many annoyances that Conservatives can fix when they take up foreign assistance reform.

The Battle of the Logos

In my first weeks at post as Ambassador to Tanzania, I attended numerous ribbon-cuttings for U.S.-funded health clinics, Malaria Logos 1school dormitories and other projects only to see banners with countless logos and acronyms plastered all over.  Some of the acronyms were alien to me – from organizations I hadn’t heard of before.  As a group, they were sometimes so large and colorful that they took up more space and attention than the actual “message” – something noticed by many of the Tanzanian officials in attendance.  Even if it meant distracting from that message, the organizations involved apparently wanted to make sure that their “brands” were noticeably on display.

In some cases, the named organizations on display were private ones with whom the U.S. government had contracted to implement or administer programs.  However, the bold banners and shiny plaques made it appear that it was their own money that was building that clinic or paying for those books.  My guess is that a good many of the Tanzanians in attendance had no idea that it was American taxpayers, not the named organization, that had been so generous. In fact, I can recall an event in which a Tanzanian official went to great lengths to thank a university for its great generosity in launching a global health project – even though that university was actually just implementing a grant it had received from the National Institutes of Health.

The Battle of the Government Logos

What was even more frustrating was the hodgepodge of government agency logos that adorned each banner and brochure.  Just as with non-governmental logos, they seemed to take up too much space and distract from any underlying message.  More significantly, some of the logos and acronyms were obscure enough that observers couldn’t have known they were actually referring to the U.S. government. Most Americans don’t know what acronyms like MCC, FSA, PEPFAR, PMI, USADF, USTDA and others stand for.  What are the chances that my Tanzanian friends wouldn’t recognize them?

Like most Conservatives, I believe that while foreign assistance should help those in need, it must also help America’s image and interests on the world stage. We support foreign assistance because it is the right thing to do, but also because – done right – it is the smart thing to do.  But again, how “smart” can a project be if its funding source is hidden by bureaucratic branding and self-promotion?PMI microscope close up

As ambassador, I tried to push back against all of this. First, I issued an embassy-wide directive creating a unified logo — an American flag with the phrase “From the American People” in Kiswahili — and called for it to be on every press statement and event banner.  I asked my team to send that message out to our implementing partners as well, and spoke about my “rule” at a USAID sponsored planning session with those partners. I let everyone know that I wouldn’t attend ribbon cuttings or groundbreakings unless there was a banner behind me with our new logo design.

I also created a business card-sized piece of literature — one that could be folded out into a small “table tent” – which bore the new logo and then summarized, by the numbers, just how much assistance American taxpayers were providing in Tanzania. Every member of my embassy team, American and Tanzanian, was supposed to carry it with him or her so he or she could answer the question, “What is America doing to help?”  Each member was supposed to leave one of these cards at their stops when they traveled in country.

A Good Job for Conservatives

It’s important to realize that our assistance network is made up of lots of good, dedicated professionals who are devoted to lifting lives and building communities in the countries where they serve.  It’s the system that is the problem.tshirt photo

In my battle of the logos example, some of my embassy team pointed out to me that federal offices and agencies often had rules that attempted to govern and even mandate the use of their brands in the field. Many federal agencies had sent out strict guidelines governing the use of their logos in these situations.  In some cases, they sent out “rules” directing not only the  use of their logos, but the size and position of the logos relative to other agencies’ brands.

Policymakers and opinion leaders back here in the States, especially Conservatives, need to get involved because bureaucracies never reform themselves . . . not willingly and not sufficiently.  As Ronald Reagan liked to say: “Bureaucrats do cut red tape – they just do it lengthwise.”

Conservatives have long history of standing up for EFFECTIVE foreign assistance

Monday, June 21st, 2010
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By Mark Green, Ambassador and Congressman (ret.)

I recently began posting a series of pieces with some of the reasons why I believe (a) America needs foreign assistance reform and (b) Conservatives should take up the cause.  Done right, foreign assistance can play a crucial role in our foreign policy. Unfortunately, the status quo isn’t “done right” or, at least, done as well as it could be.

Here are my first three reasons:

Reason 1: Our current foreign aid system is organizationally incoherent.

Reason 2:  We need to reform the system to make our precious taxpayer dollars go much further.

Reason 3: Foreign assistance reform is a great opportunity for Conservatives to reaffirm values and initiatives we care about. 

And now . . . Reason 4: Simply put, Conservatives (and Republicans) have a long history of standing up for EFFECTIVE foreign assistance.

I served in Congress from 1999 to 2007, and was a proud member of the unprecedented bipartisan coalition which launched foreign assistance initiatives that have lifted America’s role in the developing world.  From President Bush’s HIV/AIDS initiative (PEPFAR) to the Millennium Challenge Act (MCA) to the President’s Malaria Initiative (PMI), these historic programs have changed the course of human history in some of the world’s most impoverished lands.20100618Gender_248_1

None of these would have been possible without the leadership of conservative members of Congress and the George W. Bush Administration.

For example, the late Sen. Jesse Helms, North Carolina Republican, who was once Congress’ most strident anti-foreign-aid voices, actually co-sponsored a bill providing $200 million to help fight HIV/AIDS in Africa. He joined other staunch conservatives, including the late Congressman Henry Hyde and former Senate Majority Leader Bill Frist, in passing landmark programs such as African debt relief, the MCA and our HIV/AIDS and malaria initiatives. Sen. Helms and other Conservatives helped craft these initiatives because they believed that effective foreign assistance programs can show the world American values in action.

Bush, Helms and Frist were hardly alone in their leadership.  While it’s certainly true that some Conservatives have consistently opposed foreign aid, others have realized that there IS a role for America to play in development, and that Conservatives can and should fight to make it as effective as possible.

As far back as 1969, Republicans like President Richard Nixon recognized the importance of making foreign assistance as effective as possible:

“I agree with the conclusion of the Peterson Task Force that the downward trend of U.S. contributions to the development process should be reversed. I also agree with the Peterson Report that the level of foreign assistance ‘is only one side of the coin.’ The other side is a convincing determination that these resources can and will be used effectively.”

President Ronald Reagan insisted that our system of foreign assistance be scrutinized and reformed. But he also saw assistance as an important part of American policy.

“Foreign aid suffers from a lack of domestic constituency, in large part because the results of the programs are not often immediately visible and self-evident….It has been a major objective of this administration to subject all Federal programs to continuous and rigorous scrutiny to ensure that they directly serve United States interests and that each dollar is effectively used. My administration undertook a thorough and careful review of foreign assistance when we assumed office. We have worked closely with the Congress on this legislation. It reflects the considered judgment of both branches that our national interests are inextricably tied to the security and development of our friends and allies.”  (1981)

Reagan’s Secretary of State, George Schultz, also spoke of how effective foreign assistance was in America’s best interests:

“Our assistance program is not an end in itself. Yes, we seek to help people build better lives economically and across the whole spectrum of human needs and aspirations. . . . Economic and security assistance are not just a moral duty; they also serve our national interests. When conceived and administered well, assistance programs strengthen our foreign policy and enhance the security of our nation. By promoting economic development in needy countries, we bolster the vitality and security of the free world.” (1984)

In more recent times, Senator Jesse Helms spoke out strongly about the inefficiencies he saw in the patchwork of programs and fragmented authorities in the foreign assistance system.

“I pledge that for every dollar we take out of bureaucratic overhead, I will support a matching dollar increase in US assistance delivered through these private and faith-based charities. In other words, every one dollar that is cut from bureaucracy will translate into two dollars in real relief for the world’s neediest people” (2001)

jesse-helms-reagan_685352c

Critics often lampooned President George W. Bush’s syntax and “bushisms.” In fact, he often made fun of himself in this regard. However, no American leader has offered a more eloquent description of what America’s role should be in helping the world’s downtrodden.

“Many here today have devoted their lives to the fight against global poverty, and you know the stakes. We fight against poverty because hope is an answer to terror. We fight against poverty because opportunity is a fundamental right to human dignity. We fight against poverty because faith requires it and conscience demands it. And we fight against poverty with a growing conviction that major progress is within our reach.”(2002)

But “Bush 43” was also clear that foreign assistance should be a hand up, not a hand out – that just as wealthy nations have an obligation to help, recipient nations must also help themselves. He argued that aid should be tied to reform and self-improvementgwb.hyde.

“The goal of our development aid will be for nations to grow and prosper beyond the need for any aid. When nations adopt reforms, each dollar of aid attracts $2 of private investments. When aid is linked to good policy, four times as many people are lifted out of poverty compared to old aid practices.” (2002)

In other words, when today’s Conservative leaders take up the call to help reform our foreign assistance system, they will be joining a line of proud Conservatives, from President Reagan and Senator Jesse Helms to President George W. Bush and Congressman Henry Hyde.  These men understand why foreign assistance is important and, just as importantly, why it must be made better. And they understood that it can only reach its potential if Conservatives help it get there.

Mark Green is currently the Managing Director of the Malaria Policy Center in Washington.