The Obama Administration and Congress can use a dynamic formula
for modernizing the U.S. foreign assistance system:
The Results?
More lives saved and communities stabilized. Less inefficiency and greater transparency. Stronger U.S. foreign policy. Increased U.S. security. More effective U.S. global leadership.
Foreign Assistance Act (FAA) of 1961
Nearly 50 years old, the FAA of 1961 is largely grounded in Cold War threats and outdated or irrelevant priorities. To date, it has been amended hundreds of times and includes 38 major laws and at least 140 broad priorities, with 400 specific directives on how to implement these priorities. It simply does not reflect current 21st-century challenges.
Grand Bargain
The “Grand Bargain” is a set of goals — to be jointly determined by Congress and the Executive Branch — for what U.S. foreign assistance should achieve and how it should be managed. For years, Congress and the Executive Branch have tried to outflank each other on the allocation and management of foreign assistance dollars. 2009 presents an opportunity for renewed cooperation between Congress and the Executive Branch to enhance the U.S. contribution to global development and to effectively manage and strategically allocate those resources.
26
U.S. foreign assistance today is administered by over 50 governmental offices, through some 26 federal agencies. This can be rectified by the consolidation of foreign assistance programs under one Cabinet-level development agency with the mission and mandate to deliver results. This agency would streamline and consolidate programs with similar objectives and ensure that development is given an equal voice in foreign policy decisions.
Do well by doing good
At the recent G-20 Summit, President Obama said: “…in an era of integration and interdependence, it is also my responsibility to lead America into recognizing that its interests, its fate is tied up with the larger world; that if we neglect or abandon those who are suffering in poverty, that not only are we depriving ourselves of potential opportunities for markets and economic growth, but ultimately that despair may turn to violence that turns on us.” By supporting effective development, the U.S. can preempt conflicts that could require U.S. military action, strengthen our allies, and help build capable partners.
One Strategy
A National Strategy for Global Development (NSGD) is needed to ensure that U.S.-supported development programs work together to achieve clear objectives and ensure U.S. taxpayer dollars are being used most effectively. Besides working in tandem with the National Security Strategy, the NSGD should articulate the U.S.’s approach to global development, make clear which government agencies are in charge of executing this approach, and indicate how other partners — recipient nations, foreign governments, the private sector, and multilateral institutions — will be incorporated. Moreover, the NSGD should be crafted through a joint effort of the Executive and Legislative branch, and it should also serve to inform a rewrite of the Foreign Assistance Act.
One Act
A new Foreign Assistance Act should:
clearly outline the objectives of U.S. foreign assistance programs;
consolidate decision making and implementation functions into a single institution;
specify the roles and responsibilities of other Cabinet agencies where appropriate;
clarify the coordination of oversight responsibilities and functions;
adjust regulatory requirements to fit the reality of implementing assistance programs; and
reduce political and bureaucratic constraints (such as earmarks and presidential initiatives).
