As the first country to sign a compact with the Millennium Challenge Corporation, Madagascar has been the global guinea pig for the MCA approach. Its early experience offers important lessons for countries following in its path - both about the real challenges of program administration, and the real potential of the MCA as a source of transformation and innovation.
In U.S. Foreign Aid Reform: Will It Fix What Is Broken? CGD research fellow Stewart Patrick says the U.S. foreign aid regime is broken, and it is not clear that the Bush administration's reform plan will fix it. Patrick proposes a total overhaul of the 1961 Foreign Assistance Act and the creation of an independent, cabinet-level department for international development.Learn more
Analysis of the U.S. budget reveals a chasm between Washington rhetoric about the potentially large threats arising from weak and failing states and the paucity of resources devoted to engaging with these troubled countries. The authors argue that the U.S. should think creatively about how and when to engage and should boost the $1.1 billion requested for these countries in the 2007 budget, regarding it as a form of venture capital, with high risks but potentially high rewards. Learn more
Controversies about aid effectiveness go back decades. This new working paper by CGD senior fellow Steven Radelet provides an introduction and overview of the basic concepts, data and key debates about foreign aid. It explores the range of views on the relationship between foreign aid and economic growth and discusses the reform of foreign aid, including selectivity, country ownership, the participatory approach, harmonization and coordination, and results-based management.Learn more
Development refers to improvements in the conditions of people’s lives, such as health, education, and income. It occurs at different rates in different countries. The U.S. underwent its own version of development since the time it became an independent nation in 1776.Learn more about Rich World, Poor World: A Guide to Global Development
U.S. "development assistance" refers to the transfer of resources from the United States to developing countries and to some strategic allies. It is delivered in the form of money (via loans or grants), contributions of goods (such as food aid), and technical assistance.Learn more about Rich World, Poor World: A Guide to Global Development
Sarah Lucas May 2006 Download the full text version of the field report (PDF, 89KB)
Ghana is expected to sign the largest MCA compact to date--upwards of $500 million over 5 years--by the end of July.
As the Bush Administration prepares to announce the reorganization of U.S. foreign assistance, Nancy Birdsall, Stewart Patrick and Milan Vaishnav argue in a new essay that making a dent in global poverty will require that the U.S. address four flaws: low volume and poor quality of aid; incoherence in non-aid development policies; lack of a strategy for weak and failing states; and a penchant for unilateral over multilateral action. Related event: Transformational Diplomacy, a talk by Steve Krasner, Director of the State Department’s Policy Planning Staff.