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Archive for October, 2011

International Development Spending is Smart Contracting

Monday, October 17th, 2011
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See below for a guest post from MFAN Partner Professional Services Council. The post originally appeared on PSC’s Smart Contracting blog.

With the congressional super committee and others mulling the return on investment for various government programs, there has been a misguided call to cut foreign aid and other international development assistance. It seems nobody is really asking, or bothering to answer, the question: What do we get for the development dollar? The answer: jobs, economic growth, and security abroad—and at home.

An October Professional Services Council white paper for Congress and other stakeholders explains how international development assistance, often delivered through contracts with U.S. firms, does more than create strong foreign economies and governments. The white paper explains that foreign assistance benefits Americans by creating American jobs, establishing strong and stable allies, and opening new markets to U.S. companies.

Among the key highlights noted in the white paper:

• More than 10 million U.S. jobs are tied to exports and U.S. companies gain access to the growing markets of the developing world via international assistance and development spending. (p. 3)

• U.S. aid has allowed countries such as South Korea to successfully “graduate” from recipient to donor nation and cemented the United States’ role as a favored trade partner. (p. 3)

• Studies show that every $1 spent through trade assistance generates $53 in U.S. exports. (p. 6)

• As troops drawdown in Iraq and Afghanistan, every $4 spent by State will save $45 in Defense Department spending. (p. 6)

With that return on investment, we can’t afford not to continue foreign assistance.

They know how to fight poverty, they just need a partner

Thursday, October 13th, 2011
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See below for a guest post from Gregory Adams, Director of Aid Effectiveness at Oxfam America. This post originally appeared on Oxfam’s Politics of Poverty blog.

Let me let you in on a secret; the United States needs help. In fact, as rich and powerful as the United States is, we still have problems we can’t solve on our own. In a world where violence, scarcity, and poverty ignore borders, we need the help of people living in other countries to help make our world better, safer, and more prosperous.

The good news is that there are a lot of people out there who want to work with us. They don’t work with us out of charity or because they necessarily like us. They work with us because we want the same thing: a world that can fight back against problems like poverty, injustice, and disease.

Jacqueline Morette is a Haitian farmer and a partner in fighting poverty. Photo by Sarah Peck/Oxfam America

Jacqueline Morette is one of these people. Jacqueline is a farmer from rural Haiti. She co-founded an organization that helps poor women farmers grow more food and reach new markets to sell their products. Under her leadership, members are earning more, feeding their families, and becoming self-sufficient.

Another is Kim Nay Heang, a 57-year-old entrepreneur from Cambodia who learned how to transform her household fishpond into a profitable business venture. With this income, Heang helped her family survive a spike in food prices—and provided an education for her five grandchildren.

Or Jose Ordoñez, a Honduran corn farmer who struggled to provide for his three children. After learning to plant more profitable crops like papaya and transporting the fruits to a market where they fetch a good price, he is now earning enough to secure his family’s future.

All these people are working hard and taking risks, trying to make their communities, their countries, and the world, better. And all three of these people—Jacqueline, Kim, and Jose—have partnered with the US government to fight poverty and injustice.

The US is right to invest in partners like Jacqueline, Kim, and Jose. Real development depends on hard work by people like these, trying to change their own societies for the better. But every few years, Congress has second thoughts; they slash foreign aid to the bone, and yank the rug out from under the very people who are busting their tails to help us build a better, safer, more prosperous world.

It doesn’t have to be this way. US development assistance programs are less than one percent of the US federal budget. As one advocate put it, “Cutting foreign aid to address the budget crisis is like getting your hair cut in an effort to lose weight.” And while cutting development assistance won’t even begin to solve our fiscal problems, it will devastate people like Jacqueline, Kim and Jose who are trying to do the right thing. And it will cost lives.

Jacqueline, Kim and Jose, and millions of other people around the world working to fight poverty, hunger and injustice, don’t have fancy well-heeled lobbyists fighting for their interests in the craziness that is Washington today. But with their hard work, a little bit of our money, and both of our persistence, we can get there. We just need the courage to not give up the fight.

MFAN Statement: Poe Bill Would Strengthen Foreign Assistance Transparency, Accountability

Thursday, October 13th, 2011
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October 12, 2011 (WASHINGTON)This statement is delivered on behalf of the Modernizing Foreign Assistance Network (MFAN) by Co-Chairs David Beckmann, George Ingram and Jim Kolbe:

MFAN applauds Congressman Ted Poe (R-TX) for introducing the Foreign Aid Transparency and Accountability Act of 2012 (H.R. 3159), which calls for more coherent and consistent monitoring and evaluation of U.S. foreign assistance programs. The proposed legislation has attracted a strong list of co-sponsors from both parties, signaling broad support for U.S. development programs that are critical levers of U.S. influence in an increasingly complex global environment. The legislation also affirms the consensus among Members of Congress on both sides of the aisle that reforming U.S. foreign assistance is imperative in today’s tight budget environment.

The Foreign Aid Transparency and Accountability Act of 2012 calls for making information on U.S. foreign assistance more accessible to the public and our partners in development. The bill would do so by expanding the Obama Administration’s Foreign Assistance Dashboard initiative to include comprehensive reporting from each agency engaged in overseas development, while requiring that these agencies produce and make available measurable goals and clear strategies for foreign assistance programs.

These steps would allow American citizens to access information on where taxpayer-funded foreign assistance is going and how it is impacting economic growth, poverty alleviation and disease eradication. Increased transparency would also give Congress the ability to exercise more effective oversight of foreign assistance programs. Finally, more transparency will help our developing country partners access timely information that can inform their own efforts. This is critical, given that the Obama Administration and Republicans and Democrats in Congress have called for recipient countries to take more ownership of, and responsibility for, their own development.

Congressman Poe’s bill is an important first step toward making lasting, statutory reforms that will ensure U.S. foreign assistance programs are more transparent, accountable, and effective.  We look forward to working with Rep. Poe, House Committee on Foreign Affairs Ranking Member Howard Berman (D-CA), the bill’s additional co-sponsors, and other Members of Congress to enact this bill during the 112th Congress.

 

 

VIDEO: Presidential Policy Directive on Global Development Town Hall

Thursday, October 6th, 2011
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On September 14th, MFAN hosted a town hall discussion on the Presidential Policy Directive on Global Development with representatives from the major government agencies focused on development. Read more about the event here and watch the video below:

MFAN Co-Chair Reviews the Global Partnerships Act of 2011

Tuesday, October 4th, 2011
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See below for a guest blog post from MFAN Co-Chair George Ingram.

My hat’s off to Congressman Berman and his staff, led by Diana Ohlbaum, for their long-awaited discussion draft of a new foreign assistance act, titled the Global Partnerships Act of 2011. It took three years to complete this draft, and we now know why. Rep. Berman’s staff produced a comprehensive, coherent and thoughtful draft and they did it through a meaningful, consultative process. They did not just clean up the tired old Foreign Assistance Act. They drafted a new law that reflects lessons learned and recent innovations, but most importantly a law that sets U.S. foreign assistance squarely on a path to address the challenges of the 21st century.

There are several innovations that permeate the entire draft. For example, the act is results focused – linking resources and policies to results on the ground instead of budgetary inputs. It brings local ownership front and center in the design and implementation of programs, with the central objective of making development efforts sustainable. And the draft creates a new country-focused funding account, Development Support Funds, that will establish clear criteria for how funds can be allocated.

The draft advances local procurement and puts an emphasis on building local capacity and institutions. It mandates consistent monitoring and evaluation of all assistance activities, including for political and security assistance. And, it provides a persistent focus on gender and the important role women play in lifting communities out of poverty.

In place of 40 or more goals and objectives and an untold number of priorities for foreign assistance, this new act identifies seven distinct purposes for assistance overall, and eight goals that apply specifically to development cooperation assistance. It also sets forth a comprehensive set of principles to govern all U.S. assistance, with a separate set for development assistance.

The Global Partnerships Act of 2011 draft bill also:

  • Requires the full obligation of funds before a program is authorized, thereby avoiding the problem of mortgaging future budgets;
  • Mandates a quadrennial Global Development Strategy to guide U.S. assistance policies and programs, as well as periodical country development strategies, which will become the basis for Congressional review;
  • Establishes a Global Development Council, as recommended in the recent Presidential Policy Review on Development, to advise the government on development policies and programs;
  • Proposes a number of administrative/organizational changes to elevate development and make the assistance process more efficient and effective;
  • Eliminates a separate account for USAID operating expenses by designating that up to 10% of program funds be used for operating expenses; and
  • Calls for a comprehensive career-long program of professional training for all State and USAID personnel, among other recruitment programs.

This list could go on, and others who read the draft bill will come up with other provisions that they find innovative.

But this blog is not intended to convince people to sign off on this exact version of the draft bill. What it is intended to do is acknowledge the debt we all owe to Congressman Berman and his staff for the monumental task they performed. They cast a broad net to bring together the best, most experiential thinking in the assistance community and form it into a coherent draft law, as was done fifty years ago with the creation of the Foreign Assistance Act of 1961. Elements of that law have stood the test of time and are found in the new draft; others that were once relevant have appropriately been cast aside and replaced by new innovations.

Ultimately, this draft provides the focus for a conversation of what should be in a new law. It can serve as the basis for a dialogue between Congress, the Executive Branch, and civil society on what we want from our foreign assistance programs and how these programs can best advance U.S. interests around the world. It took Berman and his staff three years to write this first draft. We should take a year or so to comprehend it, debate it, make recommendations on how it can be improved, and then seek to move it into law within the next three years.