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US Development Policy
The policies and practices of the US government wield formidable influence on global development. CGD seeks to strengthen US foreign assistance tools with evidence of “what works” and propose reforms grounded in rigorous analysis across the full range of investment, trade, technology and foreign assistance related issues. With high-level US government experience and strong research credentials, our experts are sought out by policymakers for practical ideas to enhance the US’s leading role in promoting progress for all.
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Drew D'Alelio
ddalelio@cgdev.org
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This brief details how the new Congress could save more than $500 million annually by eliminating unnecessary regulations currently in place that are incredibly wasteful, anticompetitive, and make it harder to carry out effective development programs abroad.
This USAID Monitor Analysis focuses on the effects of the FY2011 budget agreement on the foreign assistance accounts portion of the function 150 budget. While the cuts are not as deep as many expected, they are still significant and will prove challenging for the State Department and USAID.
In times of fiscal constraint, the U.S. Government should be maximizing those development and policy instruments that don’t require congressional appropriations. Top of this list should be the many private sector tools, such as Overseas Private Investment Corporation. OPIC not only helps to crowd-in private investment and build markets abroad, but it is a net positive for the US budget (the FY11 budget request estimates OPIC will contribute $189 million).
Two recent events make it extremely timely for senior policymakers to focus more on how to bolster and get more out of our private sector tools:
In this paper, Connie Veillette presents the problems that beset the existing process for budgeting and resource allocation, and argue that the process is backwards. Instead of using baseline budgets and existing resources to dictate objectives, policymakers should clearly define and articulate the purposes of aid up front; then a process for matching resources to objectives can begin.
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