Contemporary Foreign Aid Issues

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Contemporary Foreign Aid Issues

• PIA 2096
• Foreign Aid Capstone Seminar

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Historical Quote

• Mrs. Jellyby...is a lady of very remarkable
  strength of character who is at presentdevoted
  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
  populationeducating the natives.i
• i Charles Dickens, Bleak House (New York
  Signet, 1964), pp. 49-50. The book was first
  published in 1853.

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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,
  1942-1943 (New York Henry Holt Company, 2002),
  p. 34.

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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.

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Goals 1950

• 3. Reversing negative environmental trends
  through strategies of sustainable development.

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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

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Overall Change Theme

• The Relationship between Academics and
  Practitioners
• Issue Should academics also be practitioners?

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Patterns

• 1950s- Very close
• 1960s-70s- Split because of Vietnam
• 1980s- Close Again- Structural Adjustment
• 1990s and esp. since 2001 Split again
• 2006- Deep Cleavage

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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 Whats the
  Matter with Foreign Aid? (London Zed Books,
  2002), p. 8.

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Reduction of Poverty

• Recognized empirically by academic studies
• Argued ideologically by Anti-Keynesian Economists
• Reflected in State Department Changes

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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

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2006

• Debate Should USAID Disappear? Three influences
• Impact of September 11
• HIV/AIDS
• Millenium Challenge Account

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The Change- 3

• Changing Motives

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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?

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Dominant Motive

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

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Change-4

• Increasing Gap between Academics and
  Practitioners
• Fewer Academics are practitioners, fewer
  practitioners write
• Focus For Profits Non-Profits

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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

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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

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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

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Field Operations

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

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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

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Change- 5

• Continuities and Change in Financing- 2006

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Financing Mechanisms

• Contracts
• IQCs
• Cooperative Agreements
• Projectization of Foreign Aid

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Grants and Contracts

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

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Change-7

• Contemporary Foreign Aid

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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?

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Foreign Aid and Technical Assistance-2006

• Current bias to international trade
• Governance and Nation Building
• Merging of international assistance and security

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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

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Historical Quote

• With Gods 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.

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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