U.S. Foreign Assistance 101

1. Alleviating and Addressing Hunger U.S. Foreign Assistance 101

2. U.S. Development or Foreign Assistance • The international affairs budget “150 Account” • Foreign aid • Official development assistance (ODA) • Poverty-focused development aid

3. What is U.S. Foreign Assistance?WHO ? Transfer of resources from the USA -> developing countries and to some strategic allies

4. What is U.S. Foreign Assistance?HOW ? Money (via loans or grants), contributions of goods (i.e. food aid), and technical assistance

5. What is U.S. Foreign Assistance?WHY ? For a variety of reasons, not all having directly to do with development...

6. 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.

7. 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

8. Humanitarian crises • to countries and people suffering famine, • recovering from a natural disaster, • or displaced by conflict

9. Long-term development purposes – • fight poverty • support agriculture • build roads • educate children • build health care capacity • create small businesses • spur economic growth

11. “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

12. 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)

14. 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

15. US National Security Strategy – the Three Pillars: Defense Diplomacy Development (Post 9/11 – since 2002) - Millennium Challenge Corp (MCC) - President’s Emergency Plan for AIDS Relief (PEPFAR)

16. MCC – Millennium Challenge Corporation Five year grants - Countries rewarded = Conceptual Basis for effectiveness of aid (eligibility criteria): Good governance Economic freedoms Investments in people

17. 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

19. PEPFAR $ 15 billion for 5 years to target 2 million people on anti-retroviral treatment 15 Focus countries Broad support within US Congress

20. US Official Development Assistance by Agency CY (calendar year) 2006

25. NET OFFICIAL DEVELOPMENT ASSISTANCE IN 2009 Source: OECD, 14 April 2010

26. Percentage spent on Foreign Aid from the US Federal Budget ? 30 percent ? 13 percent ?

27. Total International Affairs Budget (including diplomacy, development, etc.) – i.e. 150 Account equals...

28. 1.3 percent of US Federal Budget

30. Less than 1 percent...(0.55 %) Percentage (poverty-focused portion) = 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)

31. Lawns vs. Foreign Aid Americans spend as much on maintaining their lawns—$30 billion annually—as the US government spends on foreign aid

32. Pets vs. Foreign Aid Americans spend more on caring for pets—$45 billion annually—than the US government spends on foreign aid

33. Candy vs. Foreign Aid Americans spend as much on candy—$30 billion annually— as the US government spends on foreign aid.

35. 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...)

36. NET OFFICIAL DEVELOPMENT ASSISTANCE IN 2009 Source: OECD, 14 April 2010

37. US ODA as percentage of gross national income GNP = Gross National Product GNI = Gross National Income

38. COMPONENTS OF DAC DONORS’ NET ODA Source: OECD, 14 April 2010

40. Current Events • The US Global Development Policy • Feed the Future • USAID Forward

41. 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

42. 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...)