introduction to foreign assistance reform
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Introduction to Foreign Assistance Reform. Fall 2007. 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 - PowerPoint PPT PresentationTRANSCRIPT
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United States Foreign Assistance
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Introduction to Foreign Assistance Reform
Fall 2007
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United States Foreign Assistance
NOT FOR DISTRIBUTION
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
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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States 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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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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United States Foreign Assistance
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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
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