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As the largest bilateral donor in the world, the US government can play a leadership role in pushing aid effectiveness principles and sustainable development practice. The past two administrations have interwoven, to varying degrees, a number of these principles into the reform agenda of USAID as well as new institutions and initiatives like the Millennium Challenge Corporation, PEPFAR, Feed the Future, and Power Africa.
CGD evaluates US efforts to implement these reforms and principles which include:
The principle of country ownership reflects the idea that local actors including governments, civil society, and the private sector should have a stronger leadership role in the formulation and implementation of development activities in their country. Country ownership is central to the approaches of MCC, Feed the Future, and Power Africa, while USAID and the State Department have increasingly focused attention on shifting a greater share of implementation leadership and responsibility to local actors.
Foreign Aid Transparency & Accountability
In recent years, there has been a major global push to increase the transparency and accountability of foreign assistance. The US government has the potential to be a global leader in aid transparency and accountability, but it has struggled to make progress on its international commitments.
Domestic Resource Mobilization
Domestic resource mobilization (DRM) broadly refers to the process of countries raising their own money to finance their development agenda. US government efforts to support DRM have focused on helping governments expand their tax bases, improve tax compliance, and increase the capacity of tax administrations. In addition to an emphasis on resource collection, current US efforts around DRM also emphasize the importance of the transparent and accountable expenditure of resources by governments.
Results or outcome-based aid has long been a key area of study for CGD. Compared to traditional models of US foreign assistance, these funding models shift attention from inputs to outcomes -- measuring and rewarding real progress, encouraging innovation and adaptation, aligning incentives, limiting corruption, and reducing waste of donor funds. Results-based aid approaches have shown promise in improving service delivery and country ownership.
Over the past decade, the US government has repeatedly committed to incorporate greater country ownership into the way it designs and delivers aid programs. Though a range of factors—including strong domestic pressures—influence foreign assistance, US aid agencies have taken concrete steps to strengthen country ownership in their programs. A new policy paper, The Use and Utility of US Government Approaches to Country Ownership: New Insights from Partner Countries, draws upon survey data from government officials and donor staff in 126 developing countries to explore partner country perceptions of 1) how frequently the US government engaged in practices associated both favorably and less favorably with the promotion of country ownership, and 2) how useful each of those practices was.
CGD is delighted to announce that Nancy Birdsall, our founding president, will deliver the 2016 Richard Sabot Memorial Lecture, entitled ‘New Development Realities in a changing Global Order’. Birdsall will step down at the end of the year and this will be her last public event as CGD president.
Now, with a new administration, I believe it is our obligation—more so than ever before—to stick to the facts and continue to bring the best possible economic and policy analysis to the global issues and decision-makers of our day.
President-elect Trump will come into office at a time when Americans are more dependent than ever on global cooperation. Today we revisit why effective US leadership on development matters and how it can be improved.
CGD founding president Nancy Birdsall has seen a few US presidents come and go in her long career as a leading development economist, but her message to all occupants of the White House has remained fairly steady: Enact smart policies that help developing countries build stable, prosperous economies of their own—and that will help people at home too. This week she joins the CGD Podcast to talk about some of those ideas, and why development should be a priority for the next US president.