United States Foreign Assistance NOT FOR DISTRIBUTION 1 Introduction to Foreign Assistance Reform Fall 2007

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United States Foreign Assistance

NOT FOR DISTRIBUTION

Introduction to Foreign Assistance Reform

Fall 2007

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Introduction to Foreign Assistance Reform

Learning Objectives Understand origin and purpose of USG foreign

assistance

Know objectives of the reforms

Relate Operational Plan and Performance Report to the reforms

Understand the planning and reporting timeline

1a – INTRODUCTION TO FA REFORM

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U.S. Foreign Assistance Origins Marshall Plan aligned aid with foreign policy objectives and

American values

1961 Foreign Assistance Act

Serves as authorizing legislation for foreign assistance

Consolidated existing agencies/programs

Separated military from non-military aid

1998 Foreign Affairs Reform & Restructuring Act

Created USAID as a permanent executive agency

2002 National Security Strategy – The “3 D’s”

Identified development, diplomacy and defense as instruments to advance U.S. national security interests


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Foreign Ops Accounts (FY2008 Request) Approximately 35 different funding accounts

within the “150 Account” (Section 150 of 1961 F.A. Act)

Appropriated through regional (e.g., FSA, SEED) and functional/global accounts (e.g., Child Survival and Health, Peace-Keeping Operations)

Approximately $25.5 billion total – less than 1% of total annual U.S. appropriations


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Examples within FY2008 Request

Child Survival & Health (CSH) - $1.56b

Development Assistance (DA) - $1.04b

Economic Support Funds (ESF) - $3.32b

Foreign Military Financing (FMF) - $4.54b

Global HIV/AIDS Initiative (GHAI) - $4.15b

International Narcotics Control & Law Enforcement (INCLE) - $634m

Migration & Refugee Asst. (MRA) - $773m


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Facts and Figures Of 190 Operating Units (field and HQ offices that

receive FA funds) the top 10 receive 65% of the budget (excluding GHAI)

Of the 154 countries receiving FA funds, the top 10 receive 73% of the FA budget (excluding GHAI)

1/3 of budget went to Stabilization Operations and Security Sector Reform

1/3 went to Humanitarian Assistance, Health, and Counter Narcotics

1/3 went to 20 Program Areas including Democracy and Economic Growth


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US Total Resource Flows to the Developing World in 2005: $158 BN

U.S. Government Official

Development Assistance

10%Iraq and

Afghanistan8%

Private Capital Flows (FDI and Net Cap Markets)

44%

Remittances26%

Foundations 2%

Corporate Foundations 1%

NGO Grants 3%

Religious Organizations 5%

Universities and Colleges 1%


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Weaknesses of Previous System Strategically Impaired

Limited mechanisms to apply overall prioritization; outside of EUR/ACE, MEPI, OGAC, Afghan Coordinator, no central coordinating bodies

Dispersed Authority over Budgets Numerous accounts, created ad hoc in response to a series of

“emergencies,” led to stove-piping and poor coordination

Disparate Performance Measurement Systems No shared metrics to measure impact of USG-funded programs

Inadequate Imperatives to “Graduate” Countries Except for FSA, SEED and MCA, no defined threshold


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Objectives of Foreign Assistance Reform Foreign Assistance Reform builds on best

practices across the USG to improve: Strategic Direction Performance Accountability Transparency in the use of funds Information Systems

Integrate State/USAID planning, budgeting and reporting on foreign assistance


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Why Coordinate Foreign Assistance?

Unify efforts to achieve results and advance U.S. interests

Improve information-sharing, planning and implementation across USG agencies that program FA Funds

Increase ability to aggregate information and report results


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Office of the Director of U.S. Foreign Assistance (F)

Created in 2006 to: Ensure effective foreign assistance programs that

meet broad foreign policy objectives More fully align foreign assistance activities

carried out by State and USAID Convey through common language and definitions

foreign assistance activities, budgets and performance Demonstrate responsible stewardship of taxpayer

dollars


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Office of the Director of U.S. Foreign Assistance (F) Has authority over State and USAID foreign

assistance funding and programs

Directs consolidated policy, planning, budget and implementation mechanisms

Provides guidance on foreign assistance delivered through other USG entities, such as Millennium Challenge Corporation (MCC) and the Office of the U.S. Global AIDS Coordinator (OGAC)


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Strategy and Tactics

Foreign Assistance Framework sets overall goal and priority objectives

Washington takes lead in developing strategic priorities; field input is vital.

Field determines best implementation tactics based on in-country presence and knowledge.

Washington and field work closely together to: build the annual budget request, write country and regional assistance strategies; review implementation plans.


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Transformational Diplomacy

Foreign assistance is an essential tool to achieve the transformational diplomacy goal:

“Helping to build and sustain democratic, well-governed states that will respond to

the needs of their people, reduce widespread poverty, and conduct

themselves responsibly in the international system.”


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NOT FOR DISTRIBUTION 1a – INTRODUCTION TO FA REFORM

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Strategic Direction: New Foreign Assistance Standardized Program

Structure

Functional Objectives

Program Areas

Program Elements

Program Sub-Elements


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The Role of the Operational Plan

Captures Tactical Implementation of New Strategic Direction

Detailed proposal for activities and partners to be funded and results to be achieved

Instrument for collecting standardized data about foreign assistance programs


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Operational Plan: How it will be used

To more fully align State and USAID foreign assistance activities

To convey foreign assistance activities, budgets and performance through common language and definitions

To collect standardized data -- both budgetary and performance -- on planned activities

The Operation Plan is NOT a financial management tool, accounting system, MIS, Strategy Document, etc.


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Operational Plan – Who prepares it? FY 2007: Pilot Year

67 “fast-track” countries All of USAID 128 total Operational Plans

FY 2008: Full Implementation All Operating Units that implement FA programs

with funds from the 150 account 192 Operating Units – 156 countries, 12 regional

platforms, 24 State and USAID headquarters bureaus/offices


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Performance Accountability

Headquarters level Annual reporting to Congress and the public

Country level Country performance USG program performance F reviews annually to adjust country budgets

Partner level Planned funding linked to specific targets Operating Units review performance annually

Partners submit regular progress reports to Project Managers Project Managers visit field to assess progress & verify reports Findings feed into annual review of partner performance


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Information Systems

Foreign Assistance Coordination & Tracking System (FACTS)

Technology allows centralized data analysis and management within decentralized agencies

Data are collected centrally and provide more detail than in the past

USG can respond quickly to questions from stakeholders


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Questions? For information on Foreign Assistance Reform

and Operational Plans and Performance Reports, please visit:

www.state.gov/f (public website): available to non-USG partners

http://f.state.gov (State Intranet) or http://inside.usaid.gov/A/F (USAID Intranet): contains USG-only materials and Operational Plan and Performance Report Guidance

www.foreignassistance.net – learning resource site


Documents

United States Foreign Assistance NOT FOR DISTRIBUTION 1 Introduction to Foreign Assistance Reform Fall 2007