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Posts Tagged ‘economic growth’

MFAN Partner Looks at New U.S. MDG Strategy

Tuesday, September 21st, 2010
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Last week, USAID released a revised version of its Millennium Development Goals (MDGs) Strategy.  In a blog post on the ONE blog MFAN Principal Larry Nowels highlights what’s new in this updated strategy, the first draft of which was released in early August.

Nowels writes, “Most notably, the updated document says that the U.S. now has an official development policy, which “sets out the strategic objectives and the core approach to development for this administration.” The policy– which would be the first for the US government – is one that many in the development community have been waiting for since the President Obama took office, and especially since his administration launched two reviews of US development policy (through the Presidential Study Directive and the State Department’s Quadrennial Diplomacy and Development Review), the results of which have been delayed for several months.”

The new document emphasizes that successful and sustainable development outcomes will be based on economic growth, good governance, innovation, and effective capacity-building, as well as overall transparency and accountability.  The strategy also cites that the U.S. will take a greater leadership role in multilateral organizations to ensure that development is a top agenda item.

Read the rest of what’s new in the MDG strategy here, and check back on our blog on Wednesday to see if President Obama sheds any more light on the strategy in his upcoming speech.

USAID’s Shah Says It’s Time to Rethink U.S. Approach to Global Poverty

Monday, September 20th, 2010
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Rajiv Shah USAIDIn an interview yesterday with Reuters, USAID Administrator Rajiv Shah underscored the need for a new approach to development, saying the Obama Administration will be “calling for a really significant rethinking of how development is pursued.”  Citing this week’s important UN Millennium Development Goals Summit in New York, Shah stated that most of the goals would not be achieved unless countries adopted a new approach.  Shah emphasized local ownership, innovation, and greater accountability as principles driving the new U.S. approach to development, arguing “…simply reaffirming our commitment would not be enough if we were not fundamentally changing and innovating in the way we execute our work.”  He went on to say, “We are doing a number of things differently, not just as USAID but across the federal government. One, for example, is a reprioritization of economic-growth related investment in those places where we believe it’s most needed.”

Read the rest of the interview here.

MFAN Statement: Five Things to Watch For on Aid Reform at MDG Summit

Monday, September 20th, 2010
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September 20, 2010 (WASHINGTON)This statement is delivered on behalf of the Modernizing Foreign Assistance Network (MFAN) by Co-Chairs David Beckmann and George Ingram:

The Obama Administration’s ambitious development commitments will be under the spotlight this week at the UN Millennium Development Goals (MDGs) Summit, where USAID Administrator Rajiv Shah said the U.S. will urge the world to “rethink” the fight against poverty.  It is equally important for the U.S. to show the world that it is rethinking and reforming its approach to global poverty reduction and economic growth, in order to ensure that U.S. foreign assistance is making a difference in the lives of poor people around the world and, as Shah said, “every dollar is used for the maximum value.”

Building on the President’s original campaign commitment to elevate development as a key pillar of U.S. foreign policy, the Administration last week released an updated Strategy for Reaching the MDGs.  The document gives great detail about the Administration’s interest in focusing on economic growth, accountability and governance, principles that will be manifest in the President’s signature programs, Feed the Future and the Global Health Initiative.  The Administration also promises in the strategy to “modernize and strengthen our capacity to support countries to achieve sustainable development outcomes,” but virtually no detail is given about how this will be accomplished.

The foreign aid reform community will be watching this week – and in subsequent weeks when the Administration releases a promised new development policy – to see how the Administration plans to meet the modernization pledge.  Reformers will be looking for concrete, action-oriented answers to a few key questions:

  • What is the Administration’s business plan for operationalizing the MDG Strategy and new development policy, and will this plan lay out clear lines of responsibility for U.S. development efforts, which are currently undertaken by dozens of offices and agencies across the government?
  • Will the Administration work with Congress to build a more coherent, accountable legislative foundation for development, particularly by overhauling the Foreign Assistance Act of 1961 for the first time?
  • How will the Administration build more local ownership into assistance programs and hold itself and recipients more accountable for results?
  • Building on the important internally-led reform efforts already underway in the agency, how will the Administration revitalize USAID into, in the words of Secretary of State Hillary Clinton, “the world’s premier development agency?”
  • How will the modernization pledge be carried through in implementation of Feed the Future and the Global Health Initiative?

Please contact Sam Hiersteiner at shiersteiner@gpgdc.com or 202-295-0171 if you need additional information.

MFAN Statement: Secretary Clinton’s CFR Speech Falls Short on Development and Aid Reform

Thursday, September 9th, 2010
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September 9, 2010 (WASHINGTON)This statement is delivered on behalf of the Modernizing Foreign Assistance Network (MFAN) by Co-Chairs David Beckmann and George Ingram:

In an important foreign policy speech at the Council on Foreign Relations yesterday, Secretary of State Hillary Clinton laid out the Obama Administration’s vision for a modern architecture for U.S. foreign policy, based largely on restoring U.S. global leadership.  Secretary Clinton called development a key feature of this approach, noting that the U.S. will make a concerted effort to develop the capacity of other countries to help lift themselves out of poverty, including by investing in women and girls and supporting countries, like Ghana, that can serve as bulwarks of regional stability.

Recognizing the critical role these efforts play in U.S. foreign policy, Secretary Clinton again highlighted the Administration’s commitment to elevating development as a pillar of our approach to global engagement.  We appreciate this supportive and consistent rhetoric and applaud what the Administration has done to launch new programs like Feed the Future and the Global Health Initiative.  However, the Administration has yet to move forward with broad reforms of our foreign aid system, which needs to be updated to take on the challenges of the 21st century.

In the Secretary’s 70-minute address, she covered many topics yet was able to devote just 5 minutes to development—illustrating how other responsibilities of the State Department often crowd out attention to development.  While she talked about restoring the U.S. Agency for International Development (USAID) as a world-class agency, it is not yet clear that USAID will be given the authority to lead U.S. development programs in the field.  Development assistance should be coordinated with the State Department, but development programs (helping poor farmers increase their food production, for example) require resolute focus—which USAID can provide better than State.

Secretary Clinton also stressed the importance of development in poor countries to our national security, but aid programs will not be successful unless they are unequivocally focused on development.  When the same dollars are supposed to provide help to poor people and, at the same time, serve other U.S. interests, poor people often get the short end of the stick.  Failure to address these critical issues and enact broad reform now would be a major missed opportunity and would hinder our ability to achieve sustainable results for people suffering from poverty, disease, and lack of opportunity in the developing world.  

IGD Leaders Spell Out the ‘Business of Effective Development’

Tuesday, September 7th, 2010
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Tim SolsoHarold McGrawLast week, the Initiative for Global Development–a group of business leaders brought together through their work to end poverty–posted an op-ed by two members of its Leadership Council outlining key reforms the Obama administration should consider as the President gets ready to take to the stage at this month’s UN Summit on the Millennium Development Goals (MDGs).  Harold W. McGraw, III, Chairman, President & CEO of The McGraw-Hill Companies Inc. and Tim M. Solso, Chairman & CEO of Cummins Inc. discuss three specific reforms that will not only create a foundation for US development policies and programs, but that will go a long way in strengthening public-private partnerships and leveraging the resources of the private sector on these issues.  The three reforms they list include:

  • Create a national strategy for global development–a principal MFAN ask;
  • Place a greater emphasis on results and outcomes, not inputs; and
  • Rebuild development expertise and invest for success

Read the full piece here and see excerpts below:

“After a year-long review of U.S. development policies, the timing is right to articulate publicly his plan for improving U.S. engagement with the developing world. We agree with the vision articulated by the president to date that America’s security and prosperity depend on promoting greater development around the world. For this to be successful, we believe the United States must take a more strategic, business-like approach.”

“A national strategy with clear priorities will enable the private sector – particularly businesses looking to invest – to better understand U.S. commitments to specific countries and sectors. The upcoming speech to the United Nations is a perfect opportunity to unveil the key elements of such a strategy.”

“By moving forward with these three core reforms, the Obama administration has an opportunity to build a global development strategy, based on more strategic engagement with the private sector, that expands economic opportunity abroad, raises standards of living, and brings new hope to the world’s poorest people. In turn, it will also bring countless benefits to the United States economy by creating new customers for American goods, better educated employees for American companies, and new markets for American investment in a more stable global economy.”