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Policy News Roundup – May 6

compiled by Eugenia Ho, Global Washington volunteer

New Timing for Strategic Reviews

The interim findings of the Quadrennial Diplomacy and Development Review (QDDR) were expected to be released in January.  After months of delay, it is likely that they will not be released at all.  However, the QDDR still expects to release its findings in September, which is when the discussion on the progress of the Millennium Department Goals will be held at the UN General Assembly meeting.

Discussion with USAID Administrator Rajiv Shah

 “Our time to change is now” according to USAID Administrator Rajiv Shah, at an event hosted by U.S. Global Leadership Coalition in Washington DC.  He rolled out the four overarching themes that will guide USAID reform:  recommitting to the Millennium Development Goals; investing more in country-led plans for growth; increasing the focus on science and technology to assist development; and improving implementation of development programs in conflict areas.  Shah also stressed a new commitment to transparency.  To watch the video of the event, please click here.

Despite billions wasted, more foreign aid needed: Oxfam

Oxfam International released a report coinciding with the gathering of international development ministers from the G8 nations last week, suggesting that foreign aid dollars have been wasted on corrupt and ineffective foreign-aid programs over the past several decades.  The report recommends that governments and donor agencies such as the UN should make aid funding more predictable, so recipient countries can plan better. The report also recommends strict transparency and accountability conditions for aid funding, requiring the money to be used to pay for public services.

Foreign Aid Reform: Spaghetti, Leaks and Hope

The National Security Council (NSC) has leaked a document which calls for the elevation of development as a central pillar of U.S. national security; it calls for a strengthened development agency (USAID) and independent development voice at the table when relevant policy is debated; and it calls for greater coherence in U.S. development policy through the framework of a quadrennial U.S. Global Development Strategy.  Although there are still many important issues to be debated and discussed, the vision outlined for the future has a lot to cheer for.  Click here  to view the full draft of the leaked NSC document.  Also see the Global Washington blog post about this document.

Hearing on Human Rights and Democracy Assistance:  Increasing the Effectiveness of U.S. Foreign Aid

The House Foreign Affairs Committee will hold a hearing on Human Rights and Democracy Assistance:  Increasing the Effectiveness of U.S. Foreign Aid, on Wednesday, May 12, 2010 at 9:30am.  For more information (and to see the live webcast), please click here .

The Gulf of Mexico Oil Spill‏

While the disaster is continuing to materialize and the cause is still under investigation, the recent event of the explosion of the Deepwater Horizon drill rig and the subsequent oil spill has led to discussions on its impact on U.S. energy policy, especially efforts to increase leasing acreage and oil and gas production in the Outer Continental Shelf (OCS).  Governors of California and Florida have already withdrawn their support for the idea of expanding offshore drilling, and some congressmen have warned that they can no longer support energy reform legislation if it includes such provisions.  In this article, Frank A. Verrastro, senior VP and Director of the Energy and National Security Program at the Center for Strategic and International Studies in Washington, D.C. answers critical questions relating to the impact on U.S. energy policy.  Policy changes as a result of this oil spill may have direct and indirect implications for developing countries.

Book Review: Development and its Discontents

In her new book, “Missionaries, Mercenaries and Misfits,” Kenyan newspaper columnist Rasna Warah explores the root causes of poverty and inequality in Africa and the value of development.  She concludes that by treating poverty as a “problem” to be solved with technical expertise and outside assistance, “development” in the form of donor-inspired policies ignores, and even contributes to, the very issues that are at the heart of Africa’s underdevelopment.  This book is reminiscent of Dambisa Moyo’s popular book “Dead Aid,” and is critical of World Bank officials and global development activists alike.

Nigerian President Yar’Adua dies after long illness

Nigeria is one of the top 10 recipients of US Foreign Aid, according to 2008 USAID figures.  Although the Vice President, Goodluck Jonathan, has now sworn in as President, following the death of President Yar’Adua, there will not be an election in 2011.  Will instability in Nigeria change the level of US foreign aid to the country in the next couple of years?

White House Document Leaked Outlining a “New Way Forward” on Development

Ronald Reagan Building, home of USAID

In an interesting twist, a White House document outlining a new paradigm for development policy has been leaked this week.  The document is a draft of the White House review of U.S. development policy, known as the PSD-7 (Presidential Study Directive).  We were not expecting to see anything from the White House until after the release of the State Department’s review, the QDDR (the Quadrennial Diplomacy & Development Review).

Real development policy change may be on the horizon.  According to this document, the “United States will pursue a new approach to global development that focuses our government on the critical task of helping to create a world with more prosperous and democratic states…”  This approach will be built on three pillars:

1)      “A deliberate development policy that places a premium on economic growth and democratic governance, game-changing innovations, and sustainable systems for meeting basic human needs;

2)      A new business model that positions the United States to be a more  effective partner and to leverage our leadership and;

3)      A modern architecture that elevates development as a key pillar of U.S. foreign policy and harnesses the development expertise now spread across government in support of common objectives.”

Overview of Proposed Changes:

• Implement a national development strategy, to provide explicit policy guidelines on competing objectives (such as the trade-off between real-time national security challenges and creating the conditions for long-term economic growth).
• Increase investments and engagement in development-focused innovation.
• Tailor development strategies to the unique challenges of the individual situation: no one-size fits all approach to similar problems in different countries.
• Hold long-time recipients of assistance accountable for achieving development results, even in countries where efforts have been driven largely by national security or foreign policy imperatives.
• Include the USAID Administrator in National Security Council (NSC) meetings as appropriate, though he/she will still report to the Secretary of State.
• Assess the development impact of other major policies affecting developing countries, such as trade policy, intellectual property, immigration, etc.
• Seek greater flexibility from Congress: fewer earmarks, and the ability to reallocate funding from less to more effective programs.

All of Global Washington’s Four Principles of Aid Effectiveness are accounted for in this document, with the exception of any explicit reference to local ownership.  It is somewhat strange that there is no mention of local ownership, at least as a preference over supply-side solutions.  Our three other Principles, including targeting the poor, consolidation & coordination, and transparency & accountability, are  at least in some way addressed in this document.  Click here for more information on Global Washington’s Four Principles of Aid Effectiveness.

One important fact to keep in mind is that this is a draft document that was written a few weeks ago- it is possible that changes have been made already, and that the final study may reach different conclusions.

Policy News Roundup – Proposed Cut to Foreign Affairs Budget

compiled by Eugenia Ho, Global Washington Volunteer

Heated Debate over the Proposed Cut to International Affairs Budget

Thursday, Bloody Thursday: Bono calls out senator over aid cuts

While receiving his Atlantic Council Humanitarian Leadership Award, lead singer of U2 and co-founder of ONE Campaign Bono pleaded for Washington to resist Senator Conrad’s proposed cuts of $4 billion from the $58.8 billion President Obama is requesting for FY11 budget in foreign aid funding.  He said that defense and development, while they are very different, are linked – both are “essential if we really want to build a world that’s more secure, more prosperous, and more just.”  Read full article by Josh Rogin in The Cable. 

8 out of 8 former Secretaries of State agree (with President Obama’s FY11 $58.5 billion International Affairs Budget Request)

In the ONE Campaign blog, Chris Scott reported that USGLC has posted a letter signed by all eight former Secretaries of State in support of President Obama’s FY11 $58.8 billion International Affairs Budget request.  The letter to Congress emphasizes that “programs funded by the International Affairs Budget provide critical investments in global development, diplomacy and democracy.”  Although the International Affairs budget has had modest increases over the last decade, it still represents less than 1.5 percent of all federal spending.  Therefore, all 8 Secretaries of State stressed that the requested $58.8 billion is essential to achieving the goals of protecting national security, building economic prosperity, and providing humanitarian assistance.

Letter Sent by 8 Former Secretaries of State to Congress:

Check out a copy of the letter here.

Other Development Policy News

The Initiative for Global Development summarizes a few updates on Global Development Policy 

1.  QDDR Interim Report

The Quadrennial Diplomacy and Development Review (QDDR) interim report was discussed at the National Security Council Deputies’ Committee meeting last week, but the date for publication is yet to be confirmed.

2.    Chart by Lael Brainard Highlighting the Need for Reform of U.S. Development Policy. 

Lael Brainard, previously with the Brookings Institution and recently confirmed as Under Secretary of the Treasury for International Affairs, designed a visual illustration of how the current U.S. Foreign Aid system, which was created in 1961 under the Foreign Assistance Act, is disorganized and creates confusion.

3.  USAID Administrator Raj Shah said:  This Year is a “Once-in-a-Lifetime” Opportunity for Foreign Assistance Reform.

USAID Administrator Raj Shah recently testified before the Senate Appropriations Subcommittee on State and Foreign Operations on the FY 2011 budget request for USAID. Shah described this year as a “once-in-a-lifetime” opportunity for foreign assistance reform.

4.  MCC CEO Daniel Yohannes’s Three Top Priorities for Furthering the MCC’s Mission of Reducing Poverty Through Economic Growth

On April 14th, MCC CEO Daniel Yohannes testified before the House Appropriations Subcommittee on State and Foreign Operations on the FY 2011 budget request for the MCC. His three top priorities for furthering the MCC’s mission of reducing poverty through economic growth: “being innovative,” “leveraging partnerships” and “delivering results and showing impact.”

Please see this link for Administration update details.

Haiti on the road to recovery

Ally Pregulman shared the news in One Campaign blog that the Haiti Debt Relief and Earthquake Recovery Act of 2010 was signed into law on April 26, 2010.  This legislation encourages using U.S. influence to cancel Haiti’s remaining debt to international financial institutions, currently totaling $1 billion, and directs these institutions to offer grants rather than loan assistance to Haiti in order to end the debt-relief cycle.