u.s. foreign assistance 101
DESCRIPTION
Alleviating and Addressing Hunger. U.S. Foreign Assistance 101. U.S. Development or Foreign Assistance. The international affairs budget “150 Account” Foreign aid Official development assistance (ODA) Poverty-focused development aid. What is U.S. Foreign Assistance? WHO ?. - PowerPoint PPT PresentationTRANSCRIPT
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U.S. Foreign Assistance 101
Alleviating and Addressing Hunger
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U.S. Development or Foreign Assistance
• The international affairs budget “150 Account”
• Foreign aid
• Official development assistance (ODA)
• Poverty-focused development aid
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What is U.S. Foreign Assistance?WHO ?
• Transfer of resources from the USA -> developing countries and to some strategic allies
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What is U.S. Foreign Assistance?HOW ?
• Money (via loans or grants), • contributions of goods
(i.e. food aid), • and technical assistance
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What is U.S. Foreign Assistance?WHY ?
• For a variety of reasons, not all having directly to do with development...
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What is U.S. Foreign Assistance? WHAT ? (the Categories)
• National security and foreign policy interests -
i.e.. Uzbekistan and Pakistan in exchange for use of their territory for military operations in Afghanistan.
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What is U.S. Foreign Assistance? WHAT ? (the Categories)
• Political development and stability –
conflict prevention, to build peace after conflict, and to strengthen failing states
Camp David Accords – Egypt and Israel
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Humanitarian crises to countries and people
suffering famine,
recovering from a natural disaster,
or displaced by conflict
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Long-term development purposes –
• fight poverty • support agriculture• build roads • educate children • build health care capacity• create small businesses• spur economic growth
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“Foreign Aid” - broad category of grants
• Economic development• Emergency response to disasters-----------------------------------------------• Security and military assistance• Counter-narcotics and terrorism
activities• Programmes to fight corruption
and increase public transparency
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Foreign Aid – funds to military and political allies for strategic purposes
• Israel, Egypt and Jordan – US strategic interests in the region
• Pakistan – cooperation against terrorism
• Colombia – counter-narcotics programmes
(some programmes may benefit the poor, but this is not their primary purpose)
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U.S. INTERNATIONAL FOOD AID PROGRAMMES: BASIC DESCRIPTIONS
• P.L. 480 (Titles I, II, III & V)
• Food for Progress Act of 1985
• Agriculture Act of 1949, Section 416 (b)
• McGovern-Dole International Food for Education and Child Nutrition Programme
• Bill Emerson Humanitarian Trust
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US National Security Strategy – the Three Pillars:
1. Defense
2. Diplomacy
3. Development (Post 9/11 – since 2002)
- Millennium Challenge Corp (MCC)
- President’s Emergency Plan for AIDS Relief (PEPFAR)
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MCC – Millennium Challenge Corporation
Five year grants - Countries rewarded = Conceptual Basis for effectiveness of aid (eligibility criteria):
1. Good governance 2. Economic freedoms3. Investments in people
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MCC - $ 7.9 billion programmes in 22 countries to date
• Countries must design programmes themselves
• Benchmarks of progress to receive each round of funding
• US Congress impatient with slow disbursement rates
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PEPFAR• $ 15 billion for 5 years to
target 2 million people on anti-retroviral treatment
• 15 Focus countries
• Broad support within US Congress
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US Official Development Assistance by Agency CY (calendar year) 2006
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NET OFFICIAL DEVELOPMENT ASSISTANCE IN 2009
Source: OECD, 14 April 2010
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Percentage spent on Foreign Aid from the US Federal Budget ?
• 30 percent ?
• 13 percent ?
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• Total International Affairs Budget (including diplomacy, development, etc.) – i.e. 150 Account equals...
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• 1.3 percent of US Federal Budget
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Less than 1 percent...(0.55 %)• for programmes that improve
livelihoods and create lasting solutions to world poverty
• Canada - 0.30 % (double the US %)
• UK – 0.51 % (triple the US percentage)
Percentage (poverty-focused portion) =
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Lawns vs. Foreign Aid
Americans spend asmuch on maintainingtheir lawns—$30 billionannually—as the USgovernment spends onforeign aid
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Pets vs. Foreign Aid
Americans spend more oncaring for pets—$45 billionannually—than the USgovernment spendson foreign aid
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Candy vs. Foreign Aid
Americans spend as muchon candy—$30 billion annually—as the US governmentspends on foreign aid.
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US Foreign Aid
• At $ 30 billion, US largest bilateral (plus multilateral!) donor in absolute terms
• But, compared to the US income, aid levels have fallen over the past 40 years
• Increases in the past few years, due to PEPFAR, MCC and debt relief (Iraq and Nigeria, plus Afghanistan, Pakistan...)
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NET OFFICIAL DEVELOPMENT ASSISTANCE IN 2009
Source: OECD, 14 April 2010
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as percentage of gross national incomeUS ODA
GNP = Gross National ProductGNI = Gross National Income
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COMPONENTS OF DAC DONORS’ NET ODA
Source: OECD, 14 April 2010
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Current Events
• The US Global Development Policy
• Feed the Future
• USAID Forward
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Foreign Aid has increased in last 5 years, but...
• Despite new resources and renewed attention, US ODA system remains:
• Fragmented (too many players/agencies)– USAID – overseas only 45 % of US Foreign Aid
• Cumbersome/bureaucratic – US laws on foreign aid = 33 different goals, 12 Departments, 25 different agencies, 60 separate Gov’t offices
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U.S. Leadership• Key Issue – given the absolute
amounts of foreign aid
• When the US fights poverty, everybody wins... (beneficiaries, host countries, Aid agencies around the world, the planet...)