Ideas to Action:
Independent research for global prosperity
On December 11, MCC will hold its end of the year board meeting to select which countries will be eligible for MCC’s FY2019 funds. As we do every year, CGD has been monitoring how countries perform on MCC’s scorecards, and examining the political climates and—where relevant—previous MCC program performance for countries likely to be up for debate.
In warning APEC leaders last week of China’s “constricting belt” and “one-way road,” Vice President Mike Pence provided the clearest signal yet that the US approach to foreign assistance will be shaped, if not determined, by competition with China. In the context of the administration’s trade war with China, this may not come as much of a surprise. But when it comes to the conduct of foreign assistance, it marks a striking turn away from the bipartisan approach to aid since the end of the Cold War—an approach defined around cooperation and one aimed at curbing the bad practices that arise when donors compete for the allegiance of aid recipients.
Last week, the agency came out with its first major, visible Journey to Self-Reliance product—a series of country “roadmaps” that use 17 indicators to plot low- and middle-income countries’ “commitment” to and “capacity” for self-reliance.
In the biggest step forward in US development policy since the creation of the Millennium Challenge Corporation and PEPFAR, Congress approved legislation to establish a new, modernized US development finance agency.
The White House nominated Sean Cairncross to fill the CEO role in January, and the Senate Foreign Relations Committee gave him the green light in March—but since then his nomination appears to have stalled.
Today, USAID took a big step forward on a new effort that could make a real difference to the agency’s impact and cost-effectiveness.
The Trump administration is worried about the role of Chinese finance in spreading Marxism around the developing world. But it’s Chico Marx, not Karl, that they should be focused on.
In July, United States Global AIDS Coordinator Deborah Birx made a striking commitment: under her leadership, the President’s Emergency Plan for AIDS Relief (PEPFAR) would direct at least 40 percent of its funding to host country governments or organizations by the end of 2019—rising to 70 percent by the end of 2020. The bottom line: PEPFAR’s local targets are commendable in theory, but we suspect their application in practice will prove complicated. Below is our take on the related issues—and some recommendations for PEPFAR to forge the most effective path forward.
The bill, which would create a modernized US development finance institution, just passed the House. Todd Moss explains how the new agency could help the US step up energy investments.
As USAID undertakes procurement reform, the agency should seize the opportunity to put evidence front and center. Sarah Rose explains how.
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