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Contemporary Foreign Aid Issues. PIA 2096 Foreign Aid Capstone Seminar. Historical Quote.
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Contemporary Foreign Aid Issues PIA 2096 Foreign Aid Capstone Seminar
Historical Quote • Mrs. Jellyby...is a lady of very remarkable strength of character [who] is at present…devoted to the subject of Africa, with a view to the general cultivation of the coffee berry-and the natives-and the happy settlement, on the banks of the African Rivers, of our superabundant population…educating the natives….[i] • [i] Charles Dickens, Bleak House (New York: Signet, 1964), pp. 49-50. The book was first published in 1853.
Quote: North Africa, 1943 • “Behold, we the American holy warriors have arrived….we have come to set you free.”[i] • [i] U.S. script of radio broadcast from the U.S.S. Texas, October, 1943 quoted in Rick Atkinson, An Army at Dawn: The War in Africa, 1942-1943 (New York: Henry Holt & Company, 2002), p. 34.
The Problem: Foreign Aid Goals, 1950 1. They were the reduction of material poverty through economic growth and the delivery of social services. 2. The promotion of good governance through democratically selected, accountable institutions.
Goals: 1950 3. Reversing negative environmental trends through strategies of sustainable development.
Goals: 2006 • Ostensibly, the goals of foreign aid in 2006 remain what they were more than half a century ago. • However, Issues and Perceptions have changed and are Changing
Overall Change Theme: • The Relationship between Academics and Practitioners • Issue: Should academics also be practitioners?
Patterns • 1950s- Very close • 1960s-70s- Split because of Vietnam • 1980s- Close Again- Structural Adjustment • 1990s and esp. since 2001 Split again • 2006- Deep Cleavage
The Change-1 • The Reduction of Poverty • Ultimately, however, as a number of economists have noted, “universal models of growth [did] not work well.” • Quote David Sogge, Give and Take: What’s the Matter with Foreign Aid? (London: Zed Books, 2002), p. 8.
Reduction of Poverty • Recognized empirically by academic studies • Argued ideologically by Anti-Keynesian Economists • Reflected in State Department Changes
Change -2: The Merging of USAID and State 1. Rice Announcement- Gradual process: Integrating USAID into State Department 2. Merge defense and foreign aid (Security Imperative) 3. Focus on regime change, governance and security issues 4. Decline in focus on economic and social development
2006 • Debate: Should USAID Disappear? Three influences • Impact of September 11 • HIV/AIDS • Millenium Challenge Account
The Change- 3 Changing Motives
Three Views of Foreign Aid 1. Part of Balance of Power- Carrot and Stick Approach (based on exchange Theory) 2. Commercial Promotion: Focus on International Trade 3. Humanitarian Theory: Moral Imperative (Missionary Factor) Where are we now?
Dominant Motive • Carrot and Stick Approach- Based on Exchange Theory • Back to Balance of Power • Primary focus: U.S. Security
Change-4 • Increasing Gap between Academics and Practitioners • Fewer Academics are practitioners, fewer practitioners write • Focus: For Profits & Non-Profits
Change 4- Old Patterns • Long Term Cooperative Agreements (1980s) • Land Tenure Center University of Wisconsin • Center for Disease Control in Atlanta • National Association of Schools of Public Affairs and Administration
1985- USAID Cooperative Agreement: Performance Management Project • National Association of Public Affairs and Administration • DPMC Department of Agric. • IDMC Univ. of Maryland Director: Dr. Louis A. Picard
Performance Management Project Research • Rondinelli -Foreign Aid • Kerrigan and Luke- Training • Hague and Finsterbusch-Orga-nizational Development • Kiggundu- Managing organizations • White Program Management • White- Policy Reform • Brinkerhoff strategic Management • Esman-Development Management
Field Operations • INCAE- Sub-Contract to Catholic University, Paraguay (W. Schaeffer) • Swaziland- Rukudzo Murapa • Indonesia- David Korten • Francophone Africa: David Gould • Guinea- Robert Groelsema
Technical Assistance Policy Reform • S. Morrison, R. Moore Guatamala: • Barry Ames, Brazil Management • FDMS-Gould-sub-contract U. of Pittsburgh • SADCC Study J. Montgomery, R. Klitgaard, et.al. • Business Management- J. McCullough Decentralization: • Ed Connerley and Elinor Ostrom
Change- 5 • Continuities and Change in Financing- 2006
Financing Mechanisms • Contracts • IQCs • Cooperative Agreements • Projectization of Foreign Aid
Grants and Contracts • Non-Profits- Grants and Sub-Grants- Function like Contracts • Contracts- For Profits- Project Driven
Change-7 Contemporary Foreign Aid
Foreign Aid and Technical Assistance-2006 • Back to the future • Get the LDC economy back to the 1950s • Integration: Dependent development • Is it dependent and is it development?
Foreign Aid and Technical Assistance-2006 • Current bias to international trade • Governance and Nation Building • Merging of international assistance and security
Foreign Aid and Technical Assistance- 2006 Issues • Impact of culture vs. Universal Values • Corruption, clan and ethnicity • Clans in Somalia and taxi drivers in Washington • Impact of Intellectual systems and ideologies influences and beliefs- Economic and Religious • Projects and Standard Operating Procedures
Historical Quote With God’s help, we will lift Shanghai up and up, ever up, until it is just like Kansas City.[i] [i] American Missionary quoted byJohn Franklin Campbell, The Foreign Affairs Fudge Factory (New York: Basic Books, 1971), p. 178.
Where are We now? • Should we focus on the “Good” • How Fair are our authors? • Are we missing something in our reading and discussion? • What is the reality of Foreign Aid in 2006