Foreign Assistance Reform: An Insider's Update
On January 23rd SID-Washington hosted the Chapter Event “Foreign Assistance Reform: An Insider's Update.” The panel included:
• Paula Lynch, Acting Office Director for Global Issues, Office of the Director of U.S. Foreign Assistance, U.S. Department of State
• Kevin Covert, Director of Strategic and Performance Planning, U.S. Department of State
• Wade Warren, Director of Development Planning, Africa Bureau, U.S. Agency for International Development
The three speakers play significant and complementary roles in the implementation of foreign assistance reform. They provided an update on key initiatives to improve the alignment of foreign assistance policy, strategy, and resources at the U.S. Department of State and USAID, including the latest proposals to streamline Operational Plans, develop Country Assistance Strategies, enhance Mission Strategic Plans, and strengthen budget and performance integration. They also provided an analysis of the FY 2008 Foreign Assistance appropriation and an assessment of the status and success of the foreign assistance reform effort to date.
Paula Lynch described three ways in which the Operational Plans have been streamlined:
1. Operational Plans now encompass all foreign assistance, including all USAID and all State foreign assistance.
2. Program approvals have been made significantly easier.
3. Funds are allocated at the time the reviews are done, which means there will be no waiting and the funds will be disbursed faster.
She noted that the 2008 budget has earmarked $100 million more than what was spent in 2007. However, Democracy and Economic Growth programs may be hit the hardest because the earmarks are less than last year’s.
She also noted that the Data Facts Info database containing information about the Budget and the Operational Plans should be available to everyone in the State Department and USAID, and would in the future be available to the public.
Kevin Covert, whose job is to work with the State’s Foreign Assistance Department and USAID to align their strategy and resources, talked about four issues:
1. What is working well or has improved
2. What can be improved
3. What is new
4. What can the international development community do to help the foreign assistance reform succeed
What Is Working Well or Has Improved
1. Combining State and USAID similarities has been a major achievement.
2. There is good budget and performance integration, i.e. when State and USAID asks for money from Congress, they can defend that with performance data. For the first time this year the Department of State and USAID had a joint CBJ that had full performance data.
3. Communication with the filed has improved. Gathering data from the field, listening to experts from the field, and knowing what has worked and what hasn’t have improved. “F” sends this knowledge back to the field every week in the Foreign Assistance Bulletin.
4. Leadership has improved in the face of Henrietta .
What Can Be Improved
1. The process of building the budget itself. It is a laborious, time consuming process and the kinks are still being worked on.
2. Reconciling and streamlining the four planning documents: Mission Strategic Plans, Operational Plans, Country Plans, and Country Assistance Strategies.
What Is New
1. The Mission Strategic Plan is integrating the Foreign Assistance into itself. This alignment and integration is very reassuring.
2. Eight pilots are expected in 2008 to co-develop Country Assistance Strategies.
3. The Department of Defense participates in State’s meetings.
4. The Joint Highlights Document, a 50-page summary of the performance plan, will be published in February 2008.
What Can You Do to Help The Foreign Assistance Reform Succeed
1. Be informed. Reed the bill (CBJs) because these documents provide the foundation for the work you do every day.
2. Be involved. Be proactive, contribute to the Operational Plans, come to events, and get to know the people on the other side.
3. Be flexible. Align your plans and resources with your clients’.
4. Push and challenge the Department of State. Teach them, share with them the best practices and innovations that you develop.
Wade Warren talked about what should be preserved of the current system, including:
1. The way foreign aid is categorized in 5 categories.
2. The way foreign aid categorizes countries and the idea that each country is in a different stage of development and needs to be moved on a development continuum.
3. The new relationship between the Department of State and USAID. This much closer and collaborative relationship allows for planning, strategy, and reporting documents to be co-developed.
4. Foreign Assistance is much more informed now than before from foreign policy priorities.
Three of the most interesting questions after the presentation focused on lessons from the past, budget earmarks, and staffing issues. The panel was asked how the current reform is different from previous State-USAID collaboration efforts. Kevin Covert said that the development of the Country Assistance Strategies is different from before because the Country Assistance Strategy documents will be shorter (50 pages vs. 100 pages), will emerge from consensus between Washington stakeholders and the field, and will develop over a 3-month period vs. a 1-year period.
Several attendees asked questions related to budget earmarks in general or specifically about the role of agriculture and infrastructure in foreign aid. Paula Lynch mentioned that there are still things in the budget that are not earmarked and will probably take a hit – agriculture, infrastructure, and democracy are some of them. She stressed, however, that there is some flexibility in the budget that comes from definitions. For example, if a certain sum is earmarked for “water,” it can potentially be used for both drinking and irrigation water.
Another question asked about USAID’s plans to expand staffing and whether that will be for generalists or specialists. Wade Warren replied that Henrietta is trying to rebuild USAID and is working on staffing, including specialists. There are no plans to expand generalist staffing, the plan is to hire specialists.