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It's Time to Reform USAID


World  (tags: abuse, americans, congress, dishonesty, corruption, cover-up, ethics, government, lies, propaganda, media, politics, u.s., usa, 'CIVILLIBERTIES!', 'HUMANRIGHTS!', asia, africa, children, conflict, freedoms, humanrights, HumanRights, middle-east, politics )

JL
- 2249 days ago - businessweek.com
they believe the aid bureaucracy is bloated and doesn't work. That, however, is a misperception. In practice, the foreign aid system, and in particular, the U.S. Agency for International Development (USAID), work very well in accomplishing what Washingto



   

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JL A (281)
Saturday March 23, 2013, 11:15 am
Small World by Charles Kenny
Displaced women cook in a USAID makeshift tent near Muzaffargarh, Pakistan after floods caused $7 billion in damage

Photograph by Asad Zaidi/Bloomberg

Displaced women cook in a USAID makeshift tent near Muzaffargarh, Pakistan after floods caused $7 billion in damage

It's Time to Reform USAID
Posted by: Charles Kenny on March 18, 2013

Although as much as $1.7 billion might be slashed from the U.S. foreign assistance budget because of sequester cuts, little outcry has emerged. Foreign aid has never been popular: In opinion polls, it’s often the first expenditure suggested for the chopping block. Surveys suggest Americans feel a moral responsibility to help the world’s worst off, but they believe the aid bureaucracy is bloated and doesn’t work.

That, however, is a misperception. In practice, the foreign aid system, and in particular, the U.S. Agency for International Development (USAID), work very well in accomplishing what Washington politicians want them to do. But that includes a range of purposes that have little to do with helping the world’s poor.

When it comes to buying friends at the United Nations, or buying crops in the Midwest, or creating jobs around the Capital Beltway, the U.S. foreign aid system is a paragon of effectiveness. Take the goal of buying friends. Eric Werker, a Harvard Business School associate professor, and Ilyana Kuziemko, now a Columbia Business School associate professor and Harvard Ph.D., estimated in a 2006 Harvard paper that countries rotating onto the UN Security Council were likely to see their U.S. aid increase by 59 percent. The aid then fell as the countries finished their terms. In a 1999 study, Illinois State University’s T.Y. Wang found that U.S. aid successfully affects UN voting patterns on issues vital to America’s national interests.

The foreign aid budget is also a prime vehicle for pork barrel spending. The U.S. food aid program, for instance, purchases about $1 billion worth of American crops a year. It spends roughly an additional $1 billion transporting the crops overseas, in most cases using U.S.-flagged ships. A study by the Center for Economic and Policy Research looked at contracts issued by USAID for the relief effort in Haiti. It found that while only 0.02 percent of these contracts went to Haitian firms, more than 75 percent were handed to firms in Washington, D.C., Maryland, and Virginia. Washington-based contractor Chemonics, with more than 3,000 employees, received worldwide USAID program funds of nearly three-quarters of a billion dollars in 2011.

It’s perhaps unsurprising that aid designed to maximize friends, crop purchases, and U.S. contractors isn’t the most effective at supporting development. Take food aid: Economics professors Nathan Nunn of Harvard and Nancy Qian of Yale demonstrated in a 2010 paper that what determines the size of U.S. food aid shipments isn’t recipient need, but the size of the U.S. crop. And about half the funding is used on shipping. That same money could buy supplies in local markets and help farmers in developing countries. Many U.S. contractors bring years of technical experience and a real commitment to development. Yet the considerable majority of U.S. aid doesn’t appear anywhere on recipient country budget plans, suggesting the money is buying what American suppliers want to sell—not what recipients need to get.

So who’s to blame for the poor record of U.S. foreign aid as a tool of development? It’s not the fault of the long-suffering staff of U.S. aid agencies, who can deliver very effective programs if given the chance. A global initiative backed by the U.S. and other donors supported delivery of 225 million measles vaccine doses in 2011 alone—part of a campaign that has reduced measles deaths worldwide from 2.6 million in 1980 to 139,000 in 2010. The blame, instead, lies largely with members of Congress who complain that aid is wasted because it doesn’t lead to development, and then turn around and ensure hardly any assistance is designed or delivered with development as the primary goal.

There’s pressure for change. USAID Administrator Rajiv Shah is trying to fix at least two of the problems that prevent aid from working better to promote development. “This agency is no longer satisfied with writing big checks to big contractors and calling it development,” said Shah in 2011. He has followed through with reforms designed to ensure more companies in recipient countries can win some USAID contracts. The Obama administration is also considering overhauling the food aid program so it delivers cash to hungry people or local food buyers rather than shipping grain halfway around the world.

USAID’s current contractors have hired lobbyists from the Podesta Group to combat procurement reform, and an alliance of domestic agricultural groups, shipping interests, and U.S. nongovernmental organizations that implement the food aid program are also resisting change. The food aid lobby isn’t shy about defending the idea that combating malnutrition overseas should benefit American businesses at home: “Growing, manufacturing, bagging, shipping, and transporting nutritious U.S. food creates jobs and economic activity here at home, provides support for our U.S. Merchant Marine, essential to our national defense sealift capability, and sustains a robust domestic constituency for these programs not easily replicated in alternative foreign aid programs,” they note.

If all we want is friends, jobs, and crops, we already have the aid program we need. But for those who want our support to foster development and help the world’s poor, perhaps it’s time to overhaul the way we provide foreign aid. Otherwise, we’ll continue to funnel aid dollars down Beltway and Cornbelt ratholes.
Kenny is a fellow at the Center for Global Development and the New America Foundation.
 

Beth M (138)
Saturday March 23, 2013, 11:29 am
Informative article. Thanks!
 

Past Member (0)
Saturday March 23, 2013, 11:46 am
It's well past time.
 

JL A (281)
Saturday March 23, 2013, 11:56 am
You cannot currently send a star to John because you have done so within the last day.
 

Kit B (276)
Saturday March 23, 2013, 1:59 pm

We are separated from the aid and the results. Foreign Aid is an easy target for Congress, not unlike our own few and highly effective internal aid programs, people do not see the aid in action, they only know what they hear. Which is usually negative and incorrect. Even those Senators and members of the House that speak most vociferously against foreign aid, will vote for in favor, because they do know that their own states, or districts will gain indirect benefits.

What if we spent half of our military budget on foreign aid?
 

Past Member (0)
Saturday March 23, 2013, 2:08 pm
noted thanks
 

Tamara Hayes (185)
Saturday March 23, 2013, 2:23 pm
Well said Kit! And that is exactly what it boils down to. American greed. So much more could be accomplished if the real concept of foreign aid was done in practice and not just words. America the Great Nation that loopholes it's foreign aid finances right back to the people who don't need it. Thanks J.L.
 

JL A (281)
Saturday March 23, 2013, 2:35 pm
You are welcome Carol and Tamara. I'm guessing the costs to the taxpayer would begin going down Kit--but the military-industrial complex Eisenhower warned us about would sure rattle their sabers.
You cannot currently send a star to Kit because you have done so within the last day.
You cannot currently send a star to Tamara because you have done so within the last day.
 

Naoko i (257)
Saturday March 23, 2013, 5:44 pm
Thanks JL. for the wrticle.
My husband is working for JICA, Japan International Cooperation Agency, an equivalent of USAID in Japan. Though there're some problems (things needs to be changed or improved) and criticisms about the agency and its performances, people's (both Japanese and recipients) appreciation is generally high.
 

Theodore Shayne (56)
Saturday March 23, 2013, 5:47 pm
You have heard the allegations that USAID is a co-opted NGO that does a lot of work that Spook City used to do haven't you? This is why they are distrusted in a lot of countries. What did you think they were doing in Cameroon and Darfur?
 

JL A (281)
Saturday March 23, 2013, 6:26 pm
You are welcome Naoko.
Thanks for the hypothesis Theodore.
 

Robert O (12)
Saturday March 23, 2013, 7:12 pm
Thanks JL.
 

JL A (281)
Saturday March 23, 2013, 7:20 pm
You are welcome Robert.
 

tiffany t (142)
Saturday March 23, 2013, 8:02 pm
give people the means of growing their own food, keep ours local
 

JL A (281)
Saturday March 23, 2013, 8:10 pm
You cannot currently send a star to tiffany because you have done so within the last day.
 

EDWARD G. MRKVICKA (0)
Saturday March 23, 2013, 8:13 pm
noted and read on 3-23-13 there's alot to be said about this we have so many people right now living in the streets and most of the time not even a hot meal i thought that we are suppose to help one another not everyone is fortune enough something has to give things can not keep going this way much longer a change needs to be put in place.
 

. (0)
Sunday March 24, 2013, 10:42 am
We are becoming what the Elites term surfeit population; a disposable resource.
 

JL A (281)
Sunday March 24, 2013, 1:47 pm
You cannot currently send a star to Michael because you have done so within the last day.
 

Helen Porter (39)
Monday March 25, 2013, 1:30 am
noted
 
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