Contemporary Foreign Aid Issues

1. Contemporary Foreign Aid Issues PIA 2096 Foreign Aid Capstone Seminar

2. Historical Quote • Mrs. Jellyby...is a lady of very remarkable strength of character [who] is at present…devoted to the subject of Africa, with a view to the general cultivation of the coffee berry-and the natives-and the happy settlement, on the banks of the African Rivers, of our superabundant population…educating the natives….[i] • [i] Charles Dickens, Bleak House (New York: Signet, 1964), pp. 49-50. The book was first published in 1853.

3. Quote: North Africa, 1943 • “Behold, we the American holy warriors have arrived….we have come to set you free.”[i] • [i] U.S. script of radio broadcast from the U.S.S. Texas, October, 1943 quoted in Rick Atkinson, An Army at Dawn: The War in Africa, 1942-1943 (New York: Henry Holt & Company, 2002), p. 34.

4. The Problem: Foreign Aid Goals, 1950 1. They were the reduction of material poverty through economic growth and the delivery of social services. 2. The promotion of good governance through democratically selected, accountable institutions.

5. Goals: 1950 3. Reversing negative environmental trends through strategies of sustainable development.

6. Goals: 2006 • Ostensibly, the goals of foreign aid in 2006 remain what they were more than half a century ago. • However, Issues and Perceptions have changed and are Changing

7. Overall Change Theme: • The Relationship between Academics and Practitioners • Issue: Should academics also be practitioners?

8. Patterns • 1950s- Very close • 1960s-70s- Split because of Vietnam • 1980s- Close Again- Structural Adjustment • 1990s and esp. since 2001 Split again • 2006- Deep Cleavage

9. The Change-1 • The Reduction of Poverty • Ultimately, however, as a number of economists have noted, “universal models of growth [did] not work well.” • Quote David Sogge, Give and Take: What’s the Matter with Foreign Aid? (London: Zed Books, 2002), p. 8.

10. Reduction of Poverty • Recognized empirically by academic studies • Argued ideologically by Anti-Keynesian Economists • Reflected in State Department Changes

11. Change -2: The Merging of USAID and State 1. Rice Announcement- Gradual process: Integrating USAID into State Department 2. Merge defense and foreign aid (Security Imperative) 3. Focus on regime change, governance and security issues 4. Decline in focus on economic and social development

12. 2006 • Debate: Should USAID Disappear? Three influences • Impact of September 11 • HIV/AIDS • Millenium Challenge Account

13. The Change- 3 Changing Motives

14. Three Views of Foreign Aid 1. Part of Balance of Power- Carrot and Stick Approach (based on exchange Theory) 2. Commercial Promotion: Focus on International Trade 3. Humanitarian Theory: Moral Imperative (Missionary Factor) Where are we now?

15. Dominant Motive • Carrot and Stick Approach- Based on Exchange Theory • Back to Balance of Power • Primary focus: U.S. Security

16. Change-4 • Increasing Gap between Academics and Practitioners • Fewer Academics are practitioners, fewer practitioners write • Focus: For Profits & Non-Profits

17. Change 4- Old Patterns • Long Term Cooperative Agreements (1980s) • Land Tenure Center University of Wisconsin • Center for Disease Control in Atlanta • National Association of Schools of Public Affairs and Administration

18. 1985- USAID Cooperative Agreement: Performance Management Project • National Association of Public Affairs and Administration • DPMC­ Department of Agric. • IDMC­ Univ. of Maryland Director: Dr. Louis A. Picard

19. Performance Management Project Research • Rondinelli­ -Foreign Aid • Kerrigan and Luke-­ Training • Hague and Finsterbusch­-Orga-nizational Development • Kiggundu-­ Managing organizations • White­ Program Management • White­- Policy Reform • Brinkerhoff­ strategic Management • Esman-Development Management

20. Field Operations • INCAE- Sub-Contract to Catholic University, Paraguay (W. Schaeffer) • Swaziland- Rukudzo Murapa • Indonesia- David Korten • Francophone Africa: David Gould • Guinea- Robert Groelsema

21. Technical Assistance Policy Reform • S. Morrison, R. Moore Guatamala: • Barry Ames, Brazil Management • FDMS-Gould-sub-contract U. of Pittsburgh • SADCC Study­ J. Montgomery, R. Klitgaard, et.al. • Business Management- J. McCullough Decentralization: • Ed Connerley and Elinor Ostrom

22. Change- 5 • Continuities and Change in Financing- 2006

23. Financing Mechanisms • Contracts • IQCs • Cooperative Agreements • Projectization of Foreign Aid

24. Grants and Contracts • Non-Profits- Grants and Sub-Grants- Function like Contracts • Contracts- For Profits- Project Driven

25. Change-7 Contemporary Foreign Aid

26. Foreign Aid and Technical Assistance-2006 • Back to the future • Get the LDC economy back to the 1950s • Integration: Dependent development • Is it dependent and is it development?

27. Foreign Aid and Technical Assistance-2006 • Current bias to international trade • Governance and Nation Building • Merging of international assistance and security

28. Foreign Aid and Technical Assistance- 2006 Issues • Impact of culture vs. Universal Values • Corruption, clan and ethnicity • Clans in Somalia and taxi drivers in Washington • Impact of Intellectual systems and ideologies influences and beliefs- Economic and Religious • Projects and Standard Operating Procedures

29. Historical Quote With God’s help, we will lift Shanghai up and up, ever up, until it is just like Kansas City.[i] [i] American Missionary quoted byJohn Franklin Campbell, The Foreign Affairs Fudge Factory (New York: Basic Books, 1971), p. 178.

30. Where are We now? • Should we focus on the “Good” • How Fair are our authors? • Are we missing something in our reading and discussion? • What is the reality of Foreign Aid in 2006