Foreign Aid and LDC Administration

1
Foreign Aid and LDC Administration

• Comparative and Multilateral Aid
• The Intersection of Policy, Projects and
  Implementation

2
Three Page Proposal

• Introduction and Project Statement
• Literature Review
• Major Hypotheses
• Methodology
• Due October 29, 2008

3
Quote Review- The Legacy of 1975

• AID! the farmer cried. Look at you.... He
  pointed, sweeping his finger from one charred
  remembrance of a home to another. Here is your
  American AID! The farmer spat on the ground and
  walked away.i
• i Neil Sheehan, A Bright Shining Lie John
  Paul Vann and America in Vietnam (New York
  Random House, 1988), p. 562.

4
Winning Hearts and Minds Gun Purchase Program
5
CORDS Origins of Project Mode in Bilateral and
Multilateral Activities
In May 1967 an organization known as CORDSCivil
Operations and Revolutionary Development
Supportwas formed to coordinate the U.S. civil
and military pacification programs. A unique
hybrid civil-military structure directly under
general William C. Westmoreland, the COMUSMACV,
CORDS was headed by a civilian, Ambassador Robert
W. Komer, who was appointed as Westmorelands
deputy. Current Version Three Ds or Whole
of Government Approach to Foreign aid.
6
Vietnam My Lai Massacre
7
Domestic Management Systems and International
Influences

• Historical periods of budgetary and fiscal
  management
• 1975-1981 Basic Needs
• 1981-1990 Structural Adjustment
• After 1991
• Collapse of the Soviet Union
• Clash of civilizations
• September 11, 2001

8
Review Second World as New Debtors

• Chad vs. Russia
• Transitional States
• Rise of Asia and blocks
• Crisis in Asia and the return to debt management
• Debt Crisis in U.S. and Europe Different Rules

9
Foreign Aid and Technical Assistance Factors to
Consider

• The utility of the rational actor model for
  foreign aid
• Impact of culture and values on Foreign Aid
• Impact of Intellectual systems and ideologies
  influences and beliefs
• Impact of Standard Operating Procedures
• The Impact of the Project Model on the Foreign
  Aid Process

10
Chad A Symbol of Ethnic Conflict
11
The Context of Project Management Debates

• The Importance of the Market The end of the
  Command Economy? The concepts of market and
  productivity
• International systemic hegemony and competition
  within international markets
• Complementarity problem and origins of capital
• After 1999- Fear of Market failure?

12
Market Failure Models
13
The Debate

• The World Economic Regime
• World Market Only game in Town?
• Questions of conflict pluralist vs. hegemonic
  models in the post-war world
• Economic change vs. political development
• Governance (democracy) a pre-requisite?
• Impact of world economy on Domestic Economies

14
World Markets
15
Development of Underdevelopment

• Reminder-
• Changing Terms
• Non-Western World
• Developing areas or nations
• Third World

• Southern Tier States
• LDCs
• UDCs
• Transitional States?
• Immerging Markets

16
Foreign Aid vs. Technical Assistance The Project
Mode

• Current bias to international trade
• Governance and Nation Building
• Back to the future
• Get the LDC economy back to the 1950s
• Dependent development
• Is it dependent and is it development?

17
As Foreign Policy?
18
The Project Mode

• Limited Time
• Limited Tasks
• Limited Funding

19
The Project Mode Not Simple
20
The Goal?
21
Foreign Aid Change of Focus

• THE PROJECT CYCLE
• THE PROCESS

22
Mini-Discussion

• What will you be doing two years from now?

23
Monday Morning 815

• 1. Get a cup of coffee (If you drink it)
• Start your computer
• Check your e-mail
• What then?

24
The U.S. Foreign Aid Process Development
Assistance Programs (DAPs)
Planning
Budgeting
Office of Management And Budget (OMB)
Ongoing Projects
Design Approval
Legis- lation
Foreign Policy
Implementation
Evaluation
LDC Needs
Reporting
Operational Year Budget (OYB)
Appropriation
Congressional Presentation (CP)
Budget Submissions
Host Country
Agency Policy Global Sector Strategies Regional
Strategies Research Strategy Management Objectives
Evaluation
Implementa- tion
Pre- Implementa- tion
Project Paper (PP)
Project Review Paper (PRP)
Project Identification Document (PID)
Field of Concentration Strategy (DAPII)
Country Program Strategy (DAPI)
Project Reporting Project Performance Tracking
(PPT) Financial Reporting
Ex-Post Facto Evaluation
Prior Evaluation
Financial MANAGEMENT Programming
INFORMATION Management Reports Implementation SYST
EM External Needs Program Support Data Bank
(CPDB, PAIS, DIS, ESDB) Personnel Administration
Support Database for Future Decisions, Policy
Lessons Learned Evaluation Criteria
25
Blueprint Approach to Development Planning
Pilot Project Researchers
Tested Models
Planner
Project Blueprints
Actual Change Versus Targeted Change
Administrators
Evaluation Researchers
Actions
Before-After Surveys
Target Population
26
The Project Cycle

• Analysis--collection of
• Social Analysis targeted groups women,
  minorities, indigenous peoples
• Economic Analysis--Cost Benefit
• Institutional Analysis
• Sustainability
• Organizational Requirements
• Recurrent Cost Implications
• Human Skills Needed
• Social Acceptance

27
The Project Cycle
Source Project Management System, Practical
Concepts, Inc., Washington, DC 1979.
28
The Project Cycle

• Design
• Identifying nature of problem and possible
  solutions--specific needs and desired changes
• Appraisal
• (Mandatory) data needed to prepare project plan

29
The Project Cycle

• Analysis--collection of
• Prediction
• Selection of preferred alternatives

30
The Project Cycle The Logical Framework
(LOGFRAME)

• Analysis--collection of Information
• If-then conditions
• AID moved away from logframe but not the Logical
  Model
• Was replaced by a system based on identifying
  Strategic Objectives, Intermediate Results,
  Measurable Indicators, etc.
• That system was recently "de-emphasized.
• AID mission requests for funds were tied to
  promises of specific results
• Results Framework system is "under review."

31
Ten Minute Break
32
Project Management System Provides Tools to
Support all Stages of the Project Cycle
Logical Framework
Performance Networks
1. Design
Networks display performance plans over time
Project Objectives Achieved
3. Evaluation
2. Execution
Evaluation System
Reporting System
ACHIEVEMENT
EXCEPTION
Evaluations assess performance against plans and
analyze causal linkages
Progress indicators and formats for communicating
project information
Practical Concepts, Incorporated
33
Preparation of Documents Donor USAID-A Paper
Mill

• Country Strategy Paper (DAP)
• Concept Paper (Sector
• Country Context Paper

• Technical Proposal
• Project Identification Document (PID)
• Project Paper (PP)
• Program Agreement

34
Implementation Documents
35
The Project Cycle
36
The Project Cycle

• Implementation
• Carrying out actions planned
• Personnel local (and foreign)
• Physical and organizational Needs
• Budget

37
Fragile Support Systems
38
The Project Cycle

• Monitoring and Evaluation
• Linked to End of Contract and Verification of
  Objective indicators
• Understanding what has happened and assessing
  changes and quality of change
• Issue sustainability regarding follow-on within
  the country and replicability from one country to
  another

39
Monitoring and Evaluation

• Nature of Data
• Interview vs. survey
• Impact vs. Delivery
• Seat of the pants observation
• "the old quick and dirty"

40
The problem of Measuring Project Goals

• Goals are to be limited and bounded
• Specific activities are to be clearly defined and
  achieved
• Short run success leads to successful evaluation
• Short-term loop is five years
• Implementation may not be Success

41
Monitoring and Evaluation

• Nature of Data- Judgment Evaluation vs.
  Assessment
• Two views
• a. Learn from experience
• b. Judge performance
• Problem judgment requires clear goals, in
  contradiction with learning
• Problem power of the expert

42
(No Transcript)
43
Monitoring and Evaluation

• Nature of Data
• Evaluation is a donor requirement
• External activity
• Targets blueprint activity (CPA)
• Critical path analysis (Time based action)
• PERT chart (Project Evaluation Review Technique)
  very technical, programmed
• Evaluation often the need for more action

44
Monitoring and Evaluation

• Nature of Data
• Evaluation as an end product
• Separate from implementation
• Action pre-determined in design prior to
  evaluation
• Separates evaluation from the on-going activity

45
(No Transcript)
46
Monitoring and Evaluation

• Issues
• Problem with Evaluation concept
• Implementation suggests a finished product
• Bureaucratic action is ongoing
• Part of larger system with ambiguous boundaries
• Assessment
• Ongoing, part of implementation process

47
End of Project Status (EOPS)

• Are of great importance and are primary target of
  project efforts and discussion
• Projects are usually very complex
• It is common to find that no single indicator is
  sufficient to describe the project achievement
  completely

48
End of Project Status (EOPS)

• In determining EOPS we apply following principle
• If all EOPS conditions are satisfied, then there
  would be no credible alternative explanation
• Except the purpose of the project (and the
  contract) has been achieved
• Good project design will include the conditions
  that demonstrate successful achievement of the
  Project Purpose

49
End of Project Status (EOPS)

• Example
• PROJECT PURPOSE IN THE DEVELOPMENT OF AN OIL
  FIELD
• Export oil
• EOPS
• 50,000 Barrels of crude/day transferred to
  tankers at nearest port
• Quality of crude produced is competitive with
  that currently sold on world market. To verify,
  one needs a) the purity of oil, b) the world
  price, c) price sold, d) amount sold

50
Oil Field
51
ME During Project Execution
M E Plan
PHYSICAL EXECUTIONPLANS (PEP)
LOGFRAMES
Design
FINANCIAL EXECUTIONPLANS (FEP)
Purpose
Execution
Evaluation
MONITORING EVALUATION REPORTS
PERIODIC MID-TERM EVALUATIONS
52
The Logical Framework
53
Example of Project Objectives

• GOAL
• Illnesses caused by impure drinking water
  reduced.
• PURPOSE
• Hygienic practices adopted by the rural
  population.
• OUTPUTS
• Clean water provided to 60 of villages in
  Northwest Region.
• Health workers trained.
• ACTIVITIES or Inputs Measured in Money

54
Example of Project Objectives

• ACTIVITIES
• 1.1. Choose sites for wells.
• 1.2. Organize village workers
• 2.1. Develop curriculum.
• 2.2. Recruit health workers.
• 2.3. Conduct training.

55
The Logical Framework
56
Horizontal Logic of the Logframe
57
The Means of Verification
Objectives
Observable Verifiable Indicators
Means of Verification (MOV)
Hierarchy of Objectives
Indicators
Sources of information
Method for data collection
Agency responsible for data collection, analysis,
and dissemination (information producer)
Method for analysis of data
Frequency
Application (expected uses)
Reporting format (letter, written report, oral
presentation, etc.)
Circulation (expected information users)
58
Horizontal Logic of the Logframe
59
The Means of Verification
Objectives
Observable Verifiable Indicators
Means of Verification (MOV)
Hierarchy of Objectives
Indicators
Sources of information
Method for data collection
Agency responsible for data collection, analysis,
and dissemination (information producer)
Method for analysis of data
Frequency
Application (expected uses)
Reporting format (letter, written report, oral
presentation, etc.)
Circulation (expected information users)
60
Physical Execution Plan
Component/Activities/Tasks
Time
Product
Responsibility
1. Component a. Activity b. Activity c.
Activity 2. Component a. b. c...
7 units 3 units
ConstructionUnit TechnicalSupport Unit
61
Appropriate Technology
62
For Further Information

• Short course on Privatization and Contracting out
  next semester

63
Next Week

• Foreign aid
• Dealing with Donors
• Coping with Clients

64
Discussion of Books

• Klitgaard, Tropical Gangsters
• Short Precis of book
• Strengths, weaknesses, critique
• Compare to earlier reading
• What else have you been reading?
• Picard, Groelsema, et. al.
• Lancaster