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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.

Women’s Empowerment is Human Empowerment

Though we may wish to believe that the world has developed into a largely egalitarian society with equal opportunities for all, regardless of gender, this is a regrettably idealistic approach to the current global atmosphere. Studies have been conducted, goals have been presented, laws have been passed and conferences have been convened, all serving to raise awareness of gender equality around the world. But it has not been enough to solve the problem of the global suppression of women.

Nowhere is this inequity experienced more than in the developing world. Women and girls contribute to 60% of the world’s poorest people. Human traffickers target women and girls, forcing them into lives of prostitution and manual labor. Ill-equipped and under funded health care systems in the developing world lead to abysmal maternal and child survival rates.

The continuation of such practices and norms is even more unconscionable when taking into account that women are the backbone of society. Women are increasingly becoming the majority of the world’s farmers, health care providers, factory workers, and business entrepreneurs. While women have proven to be integral to the development and stability of society, they are continually left out of the development process and their power goes untapped. Thus, as Hilary Clinton would argue, providing equal opportunity to everyone, regardless of gender, is not only an issue of human rights and humanitarian values, it is a necessity to the progression of humanity and a prerequisite to sustainable development.

Secretary Clinton highlights the benefits investing in women brings to local societies and the world as a whole. “When women are free to vote and run for public office, governments are more effective and responsive to their people. When women are free to earn a living and start small businesses, they become drivers of economic growth. When women are afforded the opportunity of education and access to health care, their families and communities prosper. When women have equal rights, nations are more stable, peaceful and secure.”

Similarly, Nicholas Kristof noted in his keynote speech at the first annual Global Washington Conference that investing in women provides “so much bang for the buck.” Empowering women promotes smarter spending on education and health care, resulting in a more stable and secure environment.

In order to accomplish gender equality in the face of the global subjugation of women, the United States has embarked on a foreign policy strategy that aims to improve equality worldwide. By focusing on women in the three priorities of its global development policy, global health, food security, and climate change, the U.S. is working to improve the living conditions of women around the world. Senator John Kerry recently introduced the Enhancing Quality Assistance and Leadership and Improving Transparency (EQUALITY) Act that would create offices in the Department of State and USAID committed to elevating women’s empowerment and integrating gender equality into foreign assistance strategies.

Even with the actions taken by the United States and other international actors, we must change the way we view gender equality in global development in order to accomplish true gender equality. We must garner the vast array of benefits women can contribute to society. We must view gender equality as not only empowering women, but also empowering humanity as a whole.