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CGD Policy Blogs

 

Will the United States Be Able to Go Big on the African Development Fund This Year?

Will donors be able to “go big” on the African Development Fund (AfDF) this year, even if they want to?  Here in the United States, budget austerity and restrictive funding rules stack the deck against any bold moves when it comes to multilateral contributions.  But I think boldness in support of smart multilateral investments like AfDF may still be possible, and the United Kingdom’s multilateral aid review just might offer some clues on how to get there.   

White House Proposal Could Revolutionize Food Aid

Washington is abuzz with rumors that the White House budget will include a far-reaching reform of US food aid that moves away from in-kind food aid transported on American ships. Even though no details are available, the plan faces considerable resistance from agricultural and maritime interests that profit from the current system. But current practices are inefficient, costly, and slow and most development advocates support the administration’s desire to shake things up.

In Defense of Aid to the Afghan Government

When US troops leave Afghanistan, will US aid dollars be withdrawn as well?  The Obama administration says no.  But House Republicans are beginning to push back, bolstered by damning testimony from the Special Inspector General for Afghan Reconstruction (SIGAR), the watchdog tasked with overseeing US aid to Afghanistan, arguing that American aid is being wasted on a corrupt regime.

Does the MCC Effect Exist?

“Conditionality” in foreign aid often gets a bad rap, but are there circumstances in which it works?  The Millennium Challenge Corporation (MCC) provides large-scale development assistance to selected poor but well-governed countries, chosen primarily based on their performance on a set of publicly available policy indicators (a type of ex ante conditionality).  MCC’s selection system is touted as an incentive for countries to pursue policy reform in order to gain MCC eligibility, a phenomenon nicknamed: the “MCC Effect”.  However, there is limited

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