blog logo image

Archive for the ‘Obama Administration’ Category

Building the Foundation for Self Sufficiency

Thursday, April 16th, 2015
Bookmark and Share

See below for a guest post from Andrew Wainer, Director of Policy Research at Save the Children.

***

This week, thousands of policymakers are meeting in Washington for the World Bank and International Monetary Fund (IMF) Spring Meetings. This year’s Spring Meetings include discussions on a vast range of issues: Recovering from the recent Ebola outbreak, global infrastructure development, and migration and remittances are just some of the topics that will be discussed.

While many focus on international foreign assistance and global finance when they think of the World Bank and IMF, this year there is a strong emphasis on domestic resource mobilization (DRM). DRM has several definitions, but one way to think about it is, “The generation of savings from [developing nations own] domestic resources and their allocation to economically and socially productive investments.” Basically it’s about developing nations’ generating their own resources to fund poverty reduction, economic growth, and other social sectors like health and education.

In fact, foreign assistance (ODA) is dwarfed by the potential resources that can be generated by developing countries themselves through raising funds through their own domestic mechanisms, including taxation.

Given the massive financing demands of the Sustainable Development Goals (SDGs) which will be  adopted by the United Nations General Assembly in September, there is now widespread consensus that ODA is not enough to eliminate poverty, and that these goals will primarily need to be reached through developing nations’ generating their own resources.

In middle-income countries, tax revenues already provide more financing than ODA. For lower-income nations to meet the SDGs, they must improve their collection and spending of domestic revenue.

Many nations have a long way to go on this front.

Half of the countries in sub-Saharan Africa collect less than 17 percent of their GDP in taxes while in upper-income countries the percentage is 35 percent.

Research by Save the Children finds that if developing nations could mobilize a minimum of 20 percent of their GDP in tax revenue it would have a major impact on reducing child deaths and contributing to countries’ health and education systems.

This prioritization of DRM in nations’ development strategies also facilitates the strengthening of a country-driven development agenda. As countries generate more of their own resources for development, they are less dependent on external funding. Liberian President Ellen Johnson-Sirleaf states that many nations now seek to, “Reorient the development paradigm away from externally driven initiatives towards domestically inspired and funded initiatives.”

But the potential for nations to mobilize domestic resources is mixed, and particularly for lower developed nations, building the capacity to generate more revenue, requires initial international assistance.

In some cases, ODA and DRM can be complementary. For example, international donors can provide assistance to a developing nation’s tax gathering and administering agencies to build their revenue collection skills.

The U.S. Agency for International Development (USAID) has had an extensive program of DRM assistance in Georgia. This program focused on reducing corruption and revising its tax and customs codes. As a result of the program Georgia’s tax revenue increased.

Developing nations also need international cooperation and assistance when it comes to combatting illicit financial outflows (IFFs) which also steal potential tax revenue for potential use on poverty reduction programs and projects.  IFFs can occur through tax evasion, tax avoidance, or theft. Globally, IFFs represent as much as 4 percent of lost GDP.

Finally, donors can support advocacy efforts of local civil society to empower citizens to voice their priorities to their governments, and to hold their governments accountable for delivering results.

Happily, these issues will be front-and-center during the Spring meeting with civil society sessions on cracking down on shell companies and several World Bank and IMF sessions focused on fiscal management and tax evasion.

It may be counter-intuitive, but developing nations – both governments and civil society — need initial international assistance to build up their own revenue-generating capacity. With some international help, over the long run developing nations’ will be better able to direct and fund their own development priorities.

Broad Coalition Urges President to Nominate a Permanent USAID Administrator

Thursday, April 16th, 2015
Bookmark and Share

April 16, 2015 (WASHINGTON) – This statement is delivered on behalf of the Modernizing Foreign Assistance Network by Co-Chairs George Ingram, Carolyn Miles, and Connie Veillette:

Today MFAN, as part of a broad coalition of international development advocates and stakeholders, including four former USAID Administrators, is urging President Obama to expeditiously nominate a permanent Administrator to the United States Agency for International Development. Under the leadership of Administrator Rajiv Shah, USAID has made dramatic steps to strengthen its capacity to deliver results for the American people and for people in developing countries around the world.

Having a Senate-confirmed appointee at the helm of USAID is essential to advancing U.S. development goals and the aid effectiveness agenda. We are calling on the President to nominate a new Administrator as soon as possible to sustain strong U.S. leadership on the development programs that play a vital role in support of our foreign policy goals and are crucial to the lives and well-being of men and women around the globe.

Statement: MFAN Applauds Important Reform Elements in the Global Food Security Act of 2015

Wednesday, March 25th, 2015
Bookmark and Share

March 25, 2015 (WASHINGTON) – This statement is delivered on behalf of the Modernizing Foreign Assistance Network by Co-Chairs George Ingram, Carolyn Miles, and Connie Veillette:

MFAN is pleased to see that the Global Food Security Act of 2015 (H.R. 1567), recently reintroduced by Reps. Chris Smith (R-NJ) and Betty McCollum (D-MN), includes important reform elements that would help strengthen accountability mechanisms and promote greater country ownership of U.S. foreign assistance programs related to food security and global agricultural development.

MFAN believes that accountability is best achieved through transparency, evaluation and learning, which is why it is encouraging to see the Global Food Security Act of 2015 incorporate components of all three areas. The legislation promotes transparency by requiring that indicators and benchmarks be established to measure progress, and that results and spending information be reported publicly in a transparent and timely manner. It also calls for a whole-of-government approach to establishing coherent and coordinated monitoring and evaluation systems; and it states that strategies, partnerships, and programs be regularly reviewed and updated and that lessons learned be shared with a wide range of stakeholders.

The legislation also demonstrates a commitment to principles of country ownership. It requires that U.S. government agriculture, nutrition, and food security strategies align with country-owned strategies, and that plans be developed with input from relevant stakeholders in partner countries. It also calls for a USG strategy on building local capacity in order to support the long-term success of programs.

We applaud the bill sponsors for the inclusion of these elements as they are crucial to ensuring greater effectiveness and sustainability of U.S. global food security and agriculture programs. However, we believe the legislation could be made even stronger in several ways. First, the coordinating function within the U.S. government should lie with the United States Agency of International Development (USAID), our principal development agency, rather than the White House. USAID has been leading the development programming for the Obama Administration’s Feed the Future initiative since its inception and has the requisite expertise and experience to lead coordination across U.S. agencies. Second, reporting on spending and project data should be done in accordance with the International Aid Transparency Initiative (IATI), which the U.S. has already committed to implementing, and measures should be included to ensure that this data is accessible by all development stakeholders, especially the beneficiaries. Third, the legislation should specify that local, developing country institutions be the first option for implementing programs where appropriate capacity and conditions exist.

We look forward to working with Congress to ensure the reform elements in the bill are strengthened.

MFAN, Devex Launch New Series on Aid Effectiveness: Reform for Results

Thursday, March 19th, 2015
Bookmark and Share

Today, Devex and the Modernizing Foreign Assistance Network are launching a new series on U.S. foreign assistance reform, Reform for Results. Last Spring, we released our policy paper, The Way Forward: A Reform Agenda for 2014 and Beyond, which laid out concrete goals the U.S. government could take to make U.S. aid work harder and achieve more. With this series, we will examine accomplishments to date and emerging opportunities in 2015. We believe that the time to push the envelope on key reforms is now as the Obama Administration moves into its final years, the U.S. considers its commitment to the next round of global development goals, and Congressional interest in ensuring aid dollars are well spent increases.

We start the series with a piece from MFAN Co-Chairs George Ingram, Carolyn Miles, and Connie Veillette, which can be found here. In the coming weeks, we will be publishing new content to the Reform for Results website on our pillar issues of Accountability and Country Ownership and we encourage the community to engage in the series starting today using #Reform4Results on Twitter.

Questions for Congressional Consideration: Our Budget Hearing Wish List

Tuesday, February 24th, 2015
Bookmark and Share

See below for a post by MFAN Co-Chairs George Ingram, Carolyn Miles, and Connie Veillette.

***

Beginning this week, Congress will be calling administration officials up to Capitol Hill to answer questions about the President’s FY2016 Budget Request, which was released earlier this month. In advance of the hearings with Secretary of State John Kerry and USAID Acting Administrator Alfonso Lenhardt, we’ve given some thought to what issues we’d like to see come up and learn more about. See below for some of the questions on foreign aid reform that we’re itching to ask the Secretary and Acting Administrator… and we hope Congress is as well.

On accountability:

1)      Is the USG going to meet its commitment to full compliance with the International Aid Transparency Initiative? If not, which agencies/departments are lagging behind? What will the Secretary and Administrator do to exert the political leadership in order ensure their agencies meet the year-end deadline? [See more on this from Publish What You Fund and Brookings]

2)      How will the Secretary ensure that the evaluations now being conducted will (a) be methodologically rigorous and of good quality; (b) be made public in their entirety, and not just their summaries; and (c) be used to guide decision-making, and not just put on a shelf somewhere?

3)      Will the Secretary commit to working with Congress to lock in important reforms such as the Dashboard, the IATI commitment, and the requirement for all foreign assistance agencies to establish and implement evaluation policies? [See more on this from MFAN’s Co-Chairs]

On country ownership:

1)      How is the administration planning to continue and expand its support for initiatives like USAID’s Local Solutions that emphasize the importance of designing and implementing inclusive Country Strategies and programs that work with local partners to build local country ownership?

2)      What is USAID’s current progress towards meeting the goals of Local Solutions? How is Local Solutions being operationalized in-country and what are the outcomes and lessons learned to date? [See more on this from MFAN Co-Chair Carolyn Miles]

3)      In advance of this summer’s Financing for Development conference and in recognition of the changing landscape of development finance, how is the administration considering leveraging alternative finance mechanisms like domestic resource mobilization and co-financing? [See more on this from CGD and Oxfam]

On other reform issues:

1)      When will the second QDDR be released, how will accountability and country ownership be reflected in its recommendations, and who will be in charge of ensuring that it gets implemented?

2)      What progress has been made toward implementing the Partnership for Growth program in the four pilot countries of El Salvador, Ghana, Philippines, and Tanzania? Is the administration planning to expand the use of joint constraints to growth analyses in partner countries, which are a key component of PFG, with other partner governments? [See more on this from CGD]