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Archive for May, 2011

Tweet Stream: Secretary Clinton’s Speech on Development at the OECD

Tuesday, May 31st, 2011
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Last Thursday, Secretary of State Hillary Clinton delivered remarks during the Gender and Development session of the OECD Ministerial Council Meeting in Paris. Her speech reinforced several foreign assistance reform principles including accountability, transparency, and country ownership, but she also talked about the Obama Administration’s new development initiative—Domestic Financing for Development (DF4D). See MFAN’s live tweet stream (@modernizeaid) of Clinton’s speech below in reverse chronological order:

  • Read a recap of Sec. Clinton’s remarks at the Gender & Development OECD session from earlier today
  • We’ll post a recap highlighting key themes of Clinton’s OECD speech soon at
  • Clinton:…and identify a set of common indicators for future data collection.
  • Clinton: Let’s work together on a plan to make all the data that’s collected on women more comparable and useful…
  • Clinton: We need better data and we need to coordinate our efforts.
  • Clinton heralds OECD’s Gender Initiative, which creates policy options for countries to unleash the potential of millions of women.
  • Clinton: Too few women can get a good education, find a job, own property, or open their own businesses in too many countries.
  • Clinton: Even after all the progress made…there are still many barriers that stand in the way of economic progress for women.
  • Clinton: Women and girls are a powerful engine for creating jobs and spurring economic growth.
  • Clinton calls on OECD to “develop strategy for executing the framework” for development by next council meeting in Jan 2012.
  • Clinton: In July, the US will host the Open Government Partnership meeting which will bring together partners from many countries & sectors
  • Clinton: We are also establishing an innovation fund to create incentives & boost political support for anticorruption efforts.
  • Clinton said this is not just about how to implement reforms but “how to spark leadership and action”–building political will for change.
  • Clinton outlines new effort: domestic finance for development. #OECD50
  • Clinton:…It will depend on building the political will to implement them.
  • Clinton: Success will depend on more than funding and sharing expert technical solutions…
  • Clinton: If we partner w/ countries to break the vicious cycle and catalyze the virtuous cycle we can get on a path to self-sufficiency.
  • Clinton: As donor countries make our assistance more effective, recipient countries must do their part as well.
  • Clinton: Let me say, it is difficult to ask Americans to spend $ abroad when elites in countries turn their backs on their own people.
  • Clinton: Poor transparency makes it difficult if not impossible to determine how govts raise + spend funds & how to hold govts accountable.
  • Clinton: Corruption, lack of transparency, and poorly functioning tax systems are major barriers to long-term growth.
  • …2. doing more to support women as drivers of sustainable economic growth.
  • Clinton focuses speech on two issues: 1. partnering w/ developing countries on reforms related to taxes, transparency and corruption…
  • Clinton: Guided by PPD, the Obama Admin. is placing new emphasis on accountability, country ownership, and sustainable broad-based growth.
  • Clinton: Developing nations will define their needs and chart their futures while becoming less dependent on aid.
  • Clinton: To help people reach their full potential, we must promote sustainable & inclusive economic growth… (cont)
  • Clinton: I’m here to talk about OECD vision statement which reflects consensus “that while aid is essential, aid alone is not enough.”
  • In case you weren’t awake at 3:30 this morning, we’re about to tweet highlights from Sec. Clinton’s speech on development at OECD.



MFAN Partner Sara Messer Explores Domestic Financing for Development

Tuesday, May 31st, 2011
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In a new blog post, ONE’s policy manager for aid effectiveness, Sara Messer, reviews Secretary Clinton’s speech on development last week during an OECD session on the subject. In the speech, Clinton expands on the Obama administration’s newest concept, Domestic Financing for Development (DF4D), though details on the initiative’s implementation remain vague. Read Messer’s full post below.

You can also read ONE’s interview with Assistant Secretary of State Jose Fernandez in which he discusses DF4D in further detail by clicking here.

Boosting mutual accountability through domestic financing

Sara Messer

Speaking to a room of heads of states and ministers on Thursday, US Secretary of State Hillary Clinton used her platform as chair of the OECD Ministerial Meetings to place a special spotlight on development.

In her speech, Clinton described how the OECD can foster a new partnership between donors and developing countries, which relies on mutual accountability, and focuses reforms in the areas of taxes, transparency, and corruption.

“… Since the United States has sought to elevate development within our own foreign policy, we wanted to focus on what the OECD can do to foster more effective development practices. We start by recognizing that aid, while it remains essential, is not enough to deliver sustainable growth. Countries must be the authors of their own development. And we need to make it a priority to help nations mobilize their own resources to create those greater opportunities.” -Hillary Clinton, Remarks at the Commemoration of the 50th Anniversary of the OECD

A true development partnership based on mutual accountability means that both parties have responsibilities to uphold in contributing resources, setting priorities, and delivering results. And Clinton stressed how developing countries can take ownership of their development by increasing their ability to collect taxes, fight corruption, and be transparent about their budgets and spending.

Wealthy donor countries also share the same responsibility of being transparent about the aid they deliver, and many donor countries have taken steps to improve transparency through joining the International Aid Transparency Initiative (but not the US) and through developing new online resources for publishing aid flows, like the Foreign Assistance Dashboard. The US and other donors have also supported developing countries in the fight against corruption through the Anti-Bribery Convention and the Global Forum on Transparency. And now the State Department has announced a new initiative to help developing countries increase domestic revenues, called Domestic Financing for Development (DF4D).

Domestic Financing for Development

According to Clinton (and further elaborated through a ONE interview with Assistant Secretary of State Fernandez to be posted soon), DF4D will include:

  • New policy directives for State and USAID personnel to elevate the fight against corruption,
  • An “innovation fund to create incentives and boost political support for anticorruption efforts and tax reform,” and
  • A pilot project to help countries make reforms in these areas.

We first heard of DF4D during President Obama’s visit with President Funes of El Salvador in March, as part of a broader US framework for engaging developing countries called Partnership for Growth. Since the announcement in El Salvador however, details and information about both initiatives have been sparse. Besides El Salvador, none of the other pilot countries for Df4D have been announced, although Assistant Secretary Fernandez told us that a handful of countries initially involved will likely be from West Africa. We also know that the other three pilots for Partnership for Growth will be the Philippines, Ghana, and Tanzania, so we might watch to see if DF4D will be part of those pilots as well. However, officials have not released any strategy documents or further information on how the pilots will be implemented or what they will entail.

We know that true and sustainable development requires much more than aid, and it is promising to see Secretary Clinton and the US embracing new policies and strategies for approaching development partnerships. Supporting and strengthening countries’ ability to fight corruption and raise revenues is an important step in ensuring ownership over development and contributing to lasting growth. But these efforts must not detract from donors meeting their own commitments, whether they be about aid, trade, investment, or other policies to promote development. Donors cannot call for developing countries to step up, while they themselves back down from delivering on their own promises to fight poverty and disease (as our latest DATA Report showed). Mutual accountability relies on mutual responsibility and action.



REMINDER: MFAN Partner Event with Management Sciences for Health

Tuesday, May 31st, 2011
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Demystifying Performance-Based Financing: How USG Dollars Can Improve Global Health Outcomes


Management Sciences for Health and Modernizing Foreign Assistance Network

In conjunction with

Representative Donald Payne (D-NJ)

Invite you to a briefing with

Gyuri Fritsche, MD, MS, Senior Health Specialist, Results Based Financing Team, World Bank

Kathy Kantengwa, MD, MPP, Performance-Based Financing Advisor, MSH

Dan Kraushaar, PhD, Principal Technical Advisor for Health Systems, MSH

Oscar Picazo, MA, Health Economist

Pamela Rao, MBA, MA, MPH, Senior Health Systems Strengthening Advisor, Office of HIV/AIDS, USAID (invited)

Wednesday, June 1, 2011

8:00 to 10:00 AM

Breakfast will be provided

Rayburn Congressional House Building B-339

Performance-based financing (PBF) is a powerful management and financial approach that increases the quantity and quality of health services delivered by providing incentives to health care providers to improve performance.  This health system reform maximizes the impact of US foreign assistance investments because financing is conditional on results as opposed to traditionally-financed inputs.  PBF is heralded as an innovative and highly impactful solution to accelerate achievements in global health – particularly priority services that improve the health of women and children.  PBF increases coverage of high-impact global health interventions, encourages transparency and ownership of host-country health systems, and improves the health of the world’s poorest and most vulnerable.

What do we know about the link between PBF and health outcomes?  What has worked, where, and what is the evidence?  What are the implications for Congress and policy making?

For more information or to RSVP, please contact Mimi Wu at


OECD Week Recap

Friday, May 27th, 2011
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Yesterday, the Organization for Economic Cooperation and Development (OECD) concluded its 2011 Ministerial Council Meeting, while commemorating the organization’s 50th anniversary. The U.S. served as Chair of this year’s meeting—with Secretary of State Hillary Clinton leading the U.S. delegation—and Germany as Vice-Chair. The vision statement released this year focuses on coordinating policies for sustainable, broad-based economic growth and, with that goal in mind, implementing a new development paradigm.

Specifically, the new paradigm for development lays out a new direction for development across OECD member states. In her remarks yesterday, Secretary Clinton endorsed the Framework for an OECD Strategy for Development, which calls for “greater collaboration and knowledge sharing including sharing policy successes and failures and engaging in mutual learning, as well as deepening partnerships between the Organization and developing countries that want to engage,” in order to achieve more sustainable growth worldwide.  The OECD is meant to work in areas where it has core competencies and experience and where the organization can enhance, but not duplicate other international efforts. It is also recommended that the DAC Chairman, as well as the Chair of the Development Center Governing Board, work closely with the Secretary General to help guide the implementation of the Framework.

Building on its collective strengths, the OECD has four areas of focus for development:

  • Innovative and sustainable sources of growth;
  • Mobilization of domestic resources for development;
  • Good governance; and
  • Measuring progress for development.

The OECD will also work to help countries develop more effective tax systems—through the OECD Tax and Development Program—and complement these focus areas with work on food security. Overall, this Framework is set to shape the agenda coming out of the 4th High Level Forum on Aid Effectiveness in Busan, Korea.

MFAN has covered key moments over the course of OECD Week 2011, including the public forum. Click on the links below for more information:


Secretary Clinton Praises OECD’s New Framework for Development

Thursday, May 26th, 2011
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Secretary Clinton opened today’s session on Gender and Development with remarks on the OECD’s new Framework for Development. Building on an OECD vision of engagement that goes beyond aid, Secretary Clinton pointed to three key areas for development reforms: transparency, corruption, and tax systems. She linked the three to a U.S. consensus—guided by the President’s Directive on Global Development and the QDDR—that focuses on accountability and country-led, sustainable growth, noting that progress will enable developing nations to “define their needs and chart their futures while becoming less dependent on aid and ultimately ending their need for aid altogether.”

Referencing the three areas for reform, Clinton said “…Corruption, lack of transparency, and poorly functioning tax systems are major barriers to long-term growth in many developing countries,” adding that “poor transparency makes it difficult if not impossible to determine how governments raise and spend their funds, and therefore, how to hold governments accountable.”

Aside from the idea of domestic resource mobilization, which was discussed at yesterday’s development session, Clinton raised the issue of domestic finance for development. Clinton argued this new U.S. effort aims “to raise these issues from the technical realm to the political realm, not just how to implement the reforms but how to spark leadership and action.” As part of the effort to build political will, the U.S. will host a meeting of the Open Government Partnership in July—bringing together an array of voices from the public and private sectors to support governments’ attempts to be more transparent, accountable, and participatory.

Secretary Clinton also highlighted the importance of women and girls in driving long-term economic growth. She called on the OECD, World Bank, UN, and other organizations to develop a plan for comprehensive data collection on women and girls—along with a strategy for implementing the development framework—in time for the High Level Forum on Aid Effectiveness in Busan. Ultimately, Secretary Clinton emphasized the need for leadership from donor and developing countries alike to attract foreign investment and to get developing countries “on the path to self-sufficiency.”

Overall, Clinton’s speech touched on several key deliverables from this OECD Ministerial Council Meeting. To read more, see the official OECD fact sheet here. You can also watch Clinton’s full remarks below.