This post originally appeared on the Modernizing Foreign Assistance Network's ModernizeAid blog as a part of its Modern Legislation: Moving from Policy to Practice series.
In the fiscal year 2010 foreign operations appropriations bill, Congress earmarked nearly 70 percent of funding for bilateral economic assistance (Title III). The health and democratic governance received 36 percent of total aid funding; agriculture, education, infrastructure, and the environment all received less than 6 percent each.
The problems are threefold.
The practice of earmarking causes inefficiencies in the management of funds.
Success is measured by how much money is spent rather than on outcomes.
And, it runs counter to the goal of country ownership.
It takes months for USAID and the State Department to sort out the various sector, program, and country directives (in consultations with the Appropriations Committees) and transform the bill into a workable plan for obligating funds. That means that only a few months remain in each fiscal year to spend those funds in a responsible and efficient manner. The fact that foreign assistance programs operate in often complex environments makes this a very difficult task and one fraught with the temptation to let speed of disbursement trump other measures of effectiveness.
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