U.S. Aid Reform

Over time, the system delivering the United States' foreign assistance has become outdated. Governed by legislation written in 1961, U.S. foreign assistance is managed and programmed by more than 20 agencies. Innovative and results-oriented programs introduced in the last few years have shown a new way forward for development assistance. But they need to be integrated into a more coordinated and cohesive program governed by a national strategy for development.  

With a new Congress and a new Administration in place, there is an opportunity to prioritize development and modernize the U.S. structure for delivering assistance. A new vision for U.S. foreign assistance should adhere to the guidelines on aid effectiveness put forward in the Paris Declaration and the Accra Agenda for Action, and should include the following principles:

• Unify U.S. development assistance policy around a comprehensive National Development Strategy;
• Support sufficient resources to meet the challenges of reducing global poverty and promoting stability around the world;
• Consolidate authority and accountability in a central coordination mechanism while preserving the principles behind effective programs such as the Millennium Challenge Account and PEPFAR;
• Coordinate with recipient countries to maximize the impact of U.S. development assistance;
• Coordinate with other multilateral and bilateral donors to ensure that U.S. assistance programs are harmonized with other donor interventions; and
• Untie aid, eliminate inefficiencies and focus on results in order to maximize investment. 

Major successes in fighting poverty show us that aid works. Well-designed efforts, administered in partnership with developing countries, with clear goals and strong accountability can make an enormous difference.