Ideas to Action:

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Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

What Does UK Law Say on Aid?: How New Development Secretary Mordaunt Can Meet her Aid Effectiveness Pledge

The new UK Secretary of State for International Development has committed to “find new ways to help other departments make their spend more effective” as one of her five pledges for UK aid. Here we look at why the law underpinning the UK’s aid expenditure is weaker on poverty and gender equality outside of the Department for International Development (DFID) and identify four things the government should do to improve aid effectiveness.

Four Practical Steps to Jump-Start Foreign Assistance Reform

The White House, State Department, and US Agency for International Development (USAID) reviews have rightly emphasized addressing duplication and inefficiency. But rather than focusing on a State/USAID merger, as has been widely rumored, the administration should look at something that leads to some of the biggest duplications, triplications, and even quadruplications of capacity that exists in the US government: the severe fragmentation of US development assistance.

An Insider’s Perspective on Delivering a DIB

No one said creating development impact bonds (DIB) was going to be easy, but that hasn’t stopped the development community from trying to get them off the ground. The Fred Hollows Foundation, based in Australia, has been hard at work on a DIB to address cataract blindness in Africa. As the Foundation attracts partners to help fund and implement a pilot of the cataract bond, Dr. Lachlan McDonald, the Foundation’s senior health economist, and Alex Rankin, their Global Lead for Policy, Advocacy & Research, shared some lessons learned so far. With Lachlan and Alex’s permission, we’re turning some of those lessons over to you – we hope they’re useful to others seeking to move ahead with their own DIB.

Aid Should Be Seen as Foreign Public Investment, Not Just Charity

International development has reached a crucial moment in its evolution. Given the great progress in much of the world in the past decade or so, the paradigm of north-south development assistance is now outdated. All countries are engaged in contributing to global development, supporting sustainability and poverty reduction locally, nationally, regionally and globally.

Funders Worry About “Double Counting” – but What About “Double Demanding”?

In the world of international aid, performance payments are a hot topic. But when it comes to signing performance payment agreements, most funders have been reticent. One of the reasons is a fear of “Double Counting” – paying once for investments to achieve outcomes and a second time when the outcomes are delivered. This concern ignores the complexity of achieving development goals and the intangible assets invested by recipient countries. When funders do agree to performance agreements, they end up ignoring the burden on recipients of “Double Demanding” – disbursing when outcomes are achieved and then setting restrictions on the use of those funds. All this confusion gets in the way of designing effective aid programs.

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