The US is the largest donor of foreign assistance in the world in absolute terms. However, most Americans are unaware that the United States ranks very low in terms of percentage of GDP given in aid. In reality, the US government spends less than 1% of the federal budget on foreign aid—the lowest percentage of all developed nations. Moreover, of the 1.3% of funding designated for diplomacy and development, only 0.6% is set aside for poverty-focused development efforts. Americans spend more than this amount on soda every year.
Underfunding of US global development objectives isn’t the only problem. Our policy to manage these efforts is wildly outdated.US aid policy is based on the Foreign Assistance Act of 1961, which empowered the US Agency for International Development to administer US foreign assistance programs. Nearly fifty years on, USAID oversees the distribution of less than half of all US foreign aid, and The Foreign Assistance Act, now littered with amendments and, fails to articulate a cohesive strategy or provide strong guidance in US global development initiatives.
Update** – On February 14th 2011, President Obama announced his proposed federal budget for FY2012. The proposed budget has allocated $47 billion for the State Department and USAID, a 1% increase from the 2010 budget. The Republican driven Appropriations Committee have rejected this request and have submitted a continued resolution proposal that hopes to reduce the budgets of the State Department and USAID by 23% to 2008 levels, and possibly worse by 33% to 2006 levels. The debate over these agencies budgets and final federal budget will take place over the next few weeks. Updates will be provided as decisions are made… **
What are the problems with existing US foreign assistance?
- Too many players – Though USAID is theoretically in charge of US foreign assistance projects, politicians and presidents have often sidestepped the Foreign Assistance Act in order to forward their personal aid goals. This has greatly decentralized authority in the foreign assistance arena; the Department of Defense, State Department, Treasury Department, Health and Human Services Department, and dozens of agencies now play a role in aid dispersal.
- Too many goals – With so many players involved—and thus many different end goals—US aid policy contains no cohesive strategy or focus. The Foreign Assistance Act outlines several dozen goals and hundreds of directives but establishes no overarching strategy for aid projects that achieve them.
- Too little accountability – Because USAID oversees the dispersal of only a fraction of foreign assistance funds, there is no way to guarantee that money isn’t wasted or diverted into the coffers of middlemen and contractors. USAID also lacks the capacity and directive to investigate successes and failures or weigh the impacts of different foreign assistance approaches.
- Unsustainable approaches to development – Funneling taxpayer dollars into corrupt governments and contracted development corporations accomplishes little. Without engaging communities and allowing them to identify and build upon their own solutions, foreign aid can’t hope to achieve sustainable development. Additionally, too little attention is currently dedicated to improving education systems and the health of women and girls, two primary paths to sustainable development. Instead, we have seen weakly targeted and ineffective US foreign assistance that creates dependency, allows domestic businesses to stagnate, allows for entrenched corruption and pushes impoverished communities to rely increasingly on charity.
- Implement the U.S. Global Development Policy – President Obama’s Presidential Policy Directive (PPD) on Global Development, the first of its kind by a U.S. administration, provides clear policy guidance to all U.S. Government agencies regarding Global Development and enumerates the administration’s core objectives, operational model, and describes the modern architecture needed to implement this policy.
- Create an Inter-Agency Policy for Global Development – By ensuring transparency, clear communication and a defined strategy between key departments, foreign assistance programs can be streamlined, strengthened, and coordinated under specifically designated goals. An Inter-Agency Policy would greatly increase effectiveness and informed decision-making.
- Strengthen and reinvigorate USAID – USAID leadership under Raj Shah and staff is developing in line with both the PPD goals and a re-envisioned 3D U.S. National Security Strategy, based on Defense, Development and Diplomacy. We call for an in-depth analysis of the inherent conflict using existing structures and resources within the 3D approach, and we support the new USAID values and goals of local capacity building, selective at scale investments, accountability of public-private partnerships, country ownership and strengthening multilateral capacities.
- Follow the developments of the Global Partnerships Act- Existing US Foreign Assistance spending is governed by the Foreign Assistance Act of 1961. This piece of legislation is outdated beyond belief, and it is time for Foreign Aid spending to be managed under a law that takes into account changing world dynamics, south-south partnerships, new media, new threats to freedom, declining biodiversity, food insecurity and a growing population.
What you can do
- Show a movie discussing the issue. Check out our film library for a list of free films you can borrow from AIDemocracy. Films come with discussion guides and free shipping. It couldn’t be any easier!
- Organize an event on your campus. Bring in a speaker. Organize a debate. Stand up and demand change. Check out our event database for some great ideas to get you started.
- Request a mini-grant to make your film or event a success. We provide small grants to help pay for materials, food and speakers. Contact us to discuss.
- Speak out to the network. Write a blog for our site. Post something on our Facebook group. Share photos or video with us on YouTube. Share your opinions with other concerned students like you. Here’s how to submit materials.
- Ask for advice and support. Not sure how to get started? Need to talk through ideas for your event? AIDemocracy staff and student leaders are here to help
- And more…
