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Over time, the system delivering the United States' foreign assistance has become outdated.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 global development.  

With new leadership in Washington, there is an opportunity to prioritize and elevate development and to 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 Strategy for Global Development;
• 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. 

Consistent with many of these principles, Congressmen Howard Berman (D-CA) and Mark Kirk (R-Il) have introduced legislation - the Initiating Foreign Assistance Reform Act of 2009, H.R. 2139 - taking the first step in modernizing and elevating U.S. development policies and programs.  The bill requires the President to draft and implement a National Strategy on Global Development through an inter-agency process that improves mechanisms for coordination among all stakeholders, including partner governments, civil society, and affected communities.  H.R. 2139 further strengthens U.S. capacity to monitor and evaluate the effectiveness of foreign aid programs and requires greater transparency and accountability surrounding information regarding assistance activities.  It is hoped that this initial effort will be followed in the coming months with a comprehensive package to replace out-dated foreign assistance legislation enacted nearly 50 years ago.

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.