PIA 2528

Foreign Aid

Donors, Governance and Civil Society

Foreign Aid Prior to 1948

18th Century sub-market loans and gifts of exchange

19th Century Origins- Non-profits and Faith Based organizations

World War I Humanitarian Aid- Governmental and Non-Governmental: Herbert Hoover’s American Relief Administration

American Relief Administration, 1921

Roosevelt Legacy

Latin America Programs including Pan American Highway

Technical Assistance- Independent Countries- Africa, Middle East and Asia

Lend Lease, Food and Non-Military Support

Lend Lease Act of 1940

Military and Civilian Assistance

VIDEO

FDR’s “Arsenal of Democracy”

Truman Programs: 1945-1953

Greece and Turkey

Marshall Plan

Point 4

Creation of a Standing Agency

Foreign Aid Goals: Political,Social and Economic

Humanitarian- Prior to WWII

Economic- Growth 1950s

Social- Basic Needs- 1970s

Policy Reform and State Restructuring- 1980s

Human Resource Development- 1990s (From 1990 World Development Report to Millenium Development Goals)

Governance 1990s

Security Support- 2000s

Foreign Aid Goals

Layered in like Barnacles on a ship

Foreign Aid: Terms-Review

Official International Assistance vs. Private Assistance

Foreign Aid- Loans vs. Grants

Technical Assistance- Contracts vs. Grants

Bilateral vs. Multilateral

Millennium Development Goals

Image vs. Reality

Or?

Governance: Reforms and Democracy

The New Orthodoxy

In Foreign Aid

Divisions Within the World

Before 1989North: Industrialist/ Developed Agriculture

Regime Type Democratic or notSocialist vs. Capitalist

South: LDC limited agric. IndustryUnderdeveloped Socialist or primitive capitalistCrony capitalismPatron-client

North vs. South?

Divisions Within the World

Today

Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states and Emerging States vs. “Everybody else”

Millennium Challenge Account- Choose 15 poor, most market friendly countries.

Millennium Development Goals- UN and Human Development

Security and “Counter-Terrorism”- Religion and Rejection of “Western” Model

Defense, Diplomacy and Development

Foreign Aid By Volume

More Major International Political Economy and Development Terms

Political Economy Tie Ins (Discussion)HegemonyDependency TheoryStructuralismRegimeIndigenizationComplementarity ProblemsImport SubstitutionDependent Development

Foreign Aid by Share

Multilateral Issues: An Overview The Problem of Debt

Stabilization vs. Conditionality

Public Sector Reform Policy Reform

Pressures Towards Democratic Governance

The Security Debate

Provincial Reconstruction Teams (PRT’s)

Major International Relations Terms

International Relations- Alternative Views

Structural realism; realpolitik

Balance of power

Bipolarity vs. Multi-polarity (Uni-polar)

Trans-nationalism

Counter-Terrorist Coalitions

Special Forces in Sahara Desert

Multilateral Issues

IMF vs. World Bank vs. Bilateral Donors vs. UNDP

Bridging Loans

Sectoral Loans and Grants

Project Grants

International Requirements vs. domestic political response

A View from the South

Concepts and Terms: 21st Century Neo-Orthodoxy

Heterodoxy

Stabilization/Reconstruction

Currency Reform: Auctions

Conditionality

Public Sector Reform (Policy Reforms)

A Target for Auction

A Revisionist View

What is the problem? Discussion

Foreign Aid vs. Technical Assistance: Summary Current bias to international trade: Free

Trade? Governance and Nation Building:

Democracy? Millennium Development Goals- Human

Resource Development? Millennium Challenge Account: Back to the

future? Get the LDC economy back to the 1950s

Dependent developmentIs it dependent and is it development?

Rumanian Cartoon

Foreign Aid vs. Technical Assistance (People)

1. Impact of culture on Changea. Corruption, clan and ethnicity

b. Clans in Somalia and taxi drivers in Washingtonc. Debates about Privatization

2. Impact of Standard Operating Procedures (SOPs)

3. The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics for Clear Decision-making

4. Impact of Intellectual systems and ideologies influences and beliefs (Clash of Culture vs. End of History)

Privatization in LDCs

Governance Reforms

• Democratic Governance

• Stabilization and Conditionality Requirements- Free Trade and Open Currency

• Public Sector Reform

• Rule of Law and Anti-Corruption

Administrative Reforms

Reform of the bureaucracy: Review

a. Cutback the civil service the infamous 19% first cut

b. Individual Consultants and Contractors work with investments and the service/commercial sector

c. Privatization 

Administrative Reforms: The World Bank Model

  1. Strategic Planning and Management 

2. Deregulation 

3. Performance Management 

4. Merit Recruitment

5. Decentralization: Development of Local Government and Support for Civil Society

6. Good Governance as Stability (Not Democracy)

Bureaucratic Politics

Problem of Efficiency

The Criticism of Foreign Aid

“Dead Aid”

Dambisa Moyo

VIDEO

Coffee Break

Fifteen Minutes

Ghana

Democracy and Governance Program

Ghana- West Africa

Ghana

Case Study of Civil Society Reforms

Chapter 8, Foreign Aid and Foreign Policy: Lessons for the Next Half Century, (Picard, Robert Groelsema and Terry F. Buss, eds. (New York: M.E. Sharpe, 2008), pp. 146-172)

Government Accountability Builds Trust (GAIT)

USAID Ghana Activities

Economic Growth

Health

Basic Education

Democratic Governance

Ghana Water Project

Ghana USAID Activities

Source: USAID/Ghana Country Strategic Plan (2004-2010)

Date Published: May 2003

Assessment Mission

USAID Country Plan-Ghana

Seek eligibility for Millennium Challenge Account Investment (poor, per capita income below $1,415)

Qualify- Good governance, market friendly-16 indicators

Goal: Support Accelerated Economic Growth In place in 15 countries, 2005 or 2006 Fully up and running, 2008 at $5 billion per year Focus: Infrastructure

USAID Country Plan-Ghana

Democratic Governance: SO 5 (Strategic Objective)

Note: Currently no focus on civil service reform

Two components: National and Local

Local Government Elections

Ghana Democracy and Governance-National Level

Historically- Electoral Processes.

Legislative Reform: Long term PSC (Personal Services Contractor- Legislative Specialist)

National Civil Society Development

Local Level: Democracy and Governance

Source:

ASSESSMENT REPORT: “Government Accountability Improves Trust” (GAIT)

Date: December 8, 2003

Non-Competitive Contract:

Public Administration Service

Assessment Team: Mixed Team

Kwesi Appiah: Ghana Consultant Robert J. Groelsema: USAID Washington

(D&G) Avril Kudzi: USAID Ghana (D&G) Ted Lawrence: USAID Ghana (Legislative

Specialist) Elsie Menorkpor (USAID Ghana

(Education Specialist) Louis A. Picard (Team Leader)

Decentralized Governance: Status

Contractor: Cooperative League of the United States of America (CLUSA)

Operates in the U.S. as National Cooperative Business Association-Non-Profit

Assessment Report: Submitted December 8, 2003

New Grant: Cooperative Agreement- 2004-2007

RFA (Request for Application) published December 18, 2003 (Competitive Bid)

Applications Closed: February

Grant Awarded: Estimate- April, 2004

3-6 year grant up to $11 million

Goal of GAIT* Promote Partnership between Civil Society

Organizations and Local Government

Institutional Structure: Creation of District Level Civic Unions to facilitate communication

Concern: Sustainability of structures after project completed

*Government Accountability Improves Trust

Nature of GAIT Activities

Training and Workshops

Technical assistance to Civic Unions and Local Governments

Support public (town hall) style meetings

Key: Activities support interface of LG and CSOs (E-governance)

Link with Other Donors: Civil Service and Decentralization Reform

UNDP- Normally bids, provides technical assistance

World Bank- EOP (Expression of Interest) invitation to bid (RFP)

DANIDA (Denmark), CIDA (Canada), DFID- (UK), GTZ (Germany) interested in Governance

Private Foundations: McArthur, Gates, Ford Foundation- re. E-Governance

Ghana: Second Focus: Decentralized Governance and E-Governance

Leland Initiative Money: Ended in 2003. Two or three centers established. Not clear that this was mission priority (Focus: e-Governance)

Assessment Report: Recommended Local Government/Civil Society “One Stop Shop” for dissemination of information

Possibly Operated by Civic Unions

E: Governance

Tele-cottage Model- widely used in Demnets (Democratic Network Organizations) in Eastern Europe

Technical Assistance (poss. Peace Corps volunteer)

Simple, on line publication and education programs (Logon- South Africa)

E-Governance

E-Governance- 2

E-Governance

simple publications, posters, public information presentations

simple software programs designed to demonstrate basic principles of governance

Includes the use of advocacy, information rights, the functioning of district government bodies and administrators and the functioning of committees

Impact of E-Governance

Limited evidence of community based civil society groups strengthened

Problem: Private Sector Programs often more utilized

Conclusion: Maybe a Dumb idea

Foreign Aid: Good Job Tonight?

Foreign Aid and Security

Danish Refugee Council 

VIDEO

Discussion:

What the Authors have to say?

Where are we Now?

What don’t we know?

Can Governance be Promoted by Donors?

Meet the Authors:

Andre Brink,

A Dry White Season

Looking on Darkness

André Philippus Brink (born 29 May 1935 in Vrede,

RSA) is a South African novelist. He writes in Afrikaans and English and is a Professor of English at the University of Cape Town

One of the “Sixtiers” with Ingrid Jonker (“Black Butterflies”) and Breyten Breytenbech)