, Caterpillar; U.S. Global Leadership Coalition
, United States Chamber of Commerce
, Center for Global DevelopmentOpening Statements:
Chairman Tim Kaine (D-VA)
This hearing is meant to compliment FY2014 budget hearings and looks at developmentfrom the private sector perspective.
Historically, foreign assistance investments were generally justified by national securityconcerns.
There has been a huge shift in where development assistance funding comes from over the past several decades:
Dramatic increase in private sector resource flows.
87% of global total development assistance is from private sources.
Developing countries share of global GDP is rising and half of U.S. exports going todeveloping world.
How can the U.S. better leverage private partners?
How can the U.S. measure the success of its efforts?
Ranking Member John Barrasso (R-WY)
Constituents want to know what the purpose of foreign aid is, how it is effective, whatvalue it adds to the U.S.?
With national debt increasing, it is irresponsible for the government to continue to borrowto fund programs that have not been implemented effectively.
Congress needs to evaluate effectiveness of all foreign aid programs, support programsthat are getting results and eliminate ineffective programs.
U.S. development policy is not just about foreign assistance.
U.S. needs to look at using multilateral channels as well.
U.S. aid and development policies have underachieved many times.
Many of these failures resulted from structural problems.
USAID Forward, the Quadrennial Diplomacy and Development Review (QDDR),and the Presidential Policy Directive on Global Development were initiated by theadministration but will not fix U.S. development policy.
These problems can’t be solved by providing more money or adding another bureaucratic layer.
Too many federal agencies involved (24 agencies) in foreign assistance.
Foreign aid has too many often conflicting objectives.
Interagency process is broken, which results in the delay of key decisions,duplication of work, etc.
Three possible solutions:
Limit number of agencies involved.
Link budget process to goals and results; allow experimentation with newdevelopment models (example: MCC compact model); Congress could alsoexperiment with cash on delivery programs.