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POLICY
BRIEF
November 2008
1400 16th Street, NW
Suite 210
Washington, DC 20036
202-667-8227
reform@interaction.org
www.interaction.org
U.S. Government Develo\ue000ment
Assistance Funding Trends
pROBLEM
Recommendations

Dramatically\ue000ramp\ue000up\ue000the\ue000resources\ue000invested\ue000in\ue000poverty-focused\ue000humanitarian\ue000and\ue000 development\ue000assistance\ue000along\ue000with\ue000the\ue000personnel\ue000and\ue000systems\ue000that\ue000administer\ue000and\ue000 deliver\ue000such\ue000assistance.

actions
Request\ue000a\ue000major\ue000increase\ue000in\ue000FY2010\ue000funding\ue000for\ue000development\ue000and\ue000humanitar-
\u2022\ue000
ian accounts, including the seven development and humanitarian Core Accounts

(Global\ue000Health,\ue000Development\ue000Assistance,\ue000International\ue000Disaster\ue000Assistance,\ue000O\ue001ce\ue000
of\ue000Transition\ue000Initiatives,\ue000Migration\ue000and\ue000Refugee\ue000Assistance,\ue000Emergency\ue000Refugee\ue000
and\ue000Migration\ue000Assistance,\ue000International\ue000Operations\ue000and\ue000Programs),\ue000the\ue000Millennium\ue000
Challenge\ue000Corporation,\ue000the\ue000President\u2019s\ue000Emergency\ue000Response\ue000for\ue000AIDS\ue000Relief\ue000
(PEPFAR),\ue000and\ue000peacekeeping\ue000accounts.\ue000From\ue000an\ue000FY2008\ue000baseline,\ue000InterAction\ue000recom-
mends\ue000an\ue000additional\ue000$9.9\ue000billion;
Direct\ue000the\ue000new\ue000USAID\ue000Administrator,\ue000in\ue000consultation\ue000with\ue000the\ue000National\ue000Security\ue000

\u2022\ue000
Advisor,\ue000to\ue000draft\ue000and\ue000present\ue000a\ue000national\ue000development\ue000strategy\ue000for\ue000the\ue000FY2010\ue000
budget\ue000request\ue000process\ue000that\ue000would\ue000streamline\ue000and\ue000present\ue000in\ue000a\ue000cohesive\ue000manner\ue000
U.S.\ue000Government\ue000funding\ue000requests\ue000for\ue000all\ue000foreign\ue000development\ue000and\ue000humanitarian\ue000

assistance currently provided by over 26 agencies and departments responsible \ue000or
the\ue000delivery\ue000of\ue000U.S.\ue000development\ue000and\ue000humanitarian\ue000assistance;
In the congressional budget resolution and appropriations subcommittee alloca-

\u2022\ue000
tions,\ue000provide\ue000overall\ue000and\ue000subcommittee\ue000discretionary\ue000spending\ue000allowances\ue000su\ue001-
cient\ue000to\ue000allow\ue000a\ue000total\ue000increase\ue000of\ue000$9.9\ue000billion\ue000for\ue000the\ue000development\ue000and\ue000humanitarian\ue000
accounts;\ue000and
Modernize\ue000our\ue000foreign\ue000assistance\ue000architecture\ue000to\ue000ensure\ue000maximal\ue000e\ue001ciency\ue000and\ue000ef-

\u2022\ue000
fectiveness\ue000of\ue000these\ue000increased\ue000resources.
Results
A\ue000signi\ue002cant\ue000increase\ue000on\ue000the\ue000order\ue000proposed\ue000would\ue000start\ue000the\ue000investment\ue000needed\ue000
to seed \ue000uture global economic prosperity and reduce the need \ue000or costly military

intervention\ue000and\ue000humanitarian\ue000action.\ue000It\ue000would\ue000begin\ue000to\ue000rebuild\ue000our\ue000store\ue000of\ue000goodwill\ue000 around\ue000the\ue000world,\ue000serve\ue000our\ue000long-term\ue000national\ue000security\ue000interests,\ue000and\ue000put\ue000into\ue000action\ue000 our\ue000national\ue000values.\ue000

The U.S. under-
invests in \ue000roven
\ue000rograms for foreign
develo\ue000ment and

humanitarian

assistance. U.S.
assistance remains
at historically low
levels relative to
GDp, far less than
our \ue000eer countries
\ue000rovide (\ue000er ca\ue000ita)
and less than the
American \ue000ublic
desires and believes
is the case. Congress

a\ue000\ue000ro\ue000riates
less than 1% of
the entire U.S.
government

budget to foreign develo\ue000ment and humanitarian

assistance. This

lack of u\ue000-front
investment results
in greater future
s\ue000ending on crisis
res\ue000onse and
military o\ue000erations.

Historical trend:\ue000 As\ue000 this\ue000 Congressional\ue000 Research\ue000 Service\ue000

graph\ue000shows,\ue000U.S.\ue000foreign\ue000assistance\ue000(in\ue000this\ue000case\ue000including\ue000 some\ue000 military\ue000 assistance)\ue000 as\ue000 a\ue000 percentage\ue000 of\ue000 GDP\ue000 has\ue000 de- clined\ue000 signi\ue002cantly\ue000 over\ue000 the\ue000 last\ue000 several\ue000 decades.\ue000 Data\ue000 on\ue000 U.S.\ue000o\ue001cial\ue000development\ue000assistance\ue000(a\ue000subset\ue000of\ue000foreign\ue000aid)\ue000 as\ue000 a\ue000 percentage\ue000 of\ue000 national\ue000 income\ue000 show\ue000 a\ue000 signi\ue002cant\ue000 de- cline\ue000from\ue0000.54\ue000%\ue000in\ue0001960\ue000to\ue0000.16%\ue000in\ue0002007.1

Com\ue000arison to \ue000eers:\ue000 In\ue000 a\ue000 ranking\ue000 of\ue000 O\ue001cial\ue000 Develop-
ment Assistance (ODA)2 as percentage o\ue000 national income
\ue000or 20073,\ue000 the\ue000 U.S.\ue000 ranks\ue000 23rd,\ue000 behind\ue000 Greece,\ue000 Italy,\ue000 Japan,\ue000
Portugal,\ue000 and\ue000 Italy,\ue000 to\ue000 name\ue000 just\ue000 a\ue000 few\ue000 of\ue000 the\ue000 22\ue000 nations\ue000
higher\ue000 on\ue000 the\ue000 list.\ue000 Including\ue000 private\ue000 \ue003ows\ue000 \u2013\ue000 resources\ue000 do-
nated \ue000rom \ue000oundations, individuals, universities, and cor-
porations\ue000\u2013\ue000still\ue000leaves\ue000the\ue000U.S.\ue000ranked\ue00017th\ue000(OECD4) or 11th
(Hudson Institute5)\ue000depending\ue000on\ue000data\ue000source.
The \u201cThree D\u2019s\u201d:The\ue000 U.S.\ue000 National\ue000 S ecur it y\ue000 Strategies\ue000 of\ue000
2002 and 2006 divided our national security apparatus into

three\ue000components:\ue000defense,\ue000diplomacy\ue000and\ue000development.\ue000 The\ue000 2006\ue000 Strategy\ue000 says:\ue000 \u201cDevelopment\ue000 reinforces\ue000 diplo- macy\ue000 and\ue000 defense,\ue000 reducing\ue000 long-term\ue000 threats\ue000 to\ue000 our\ue000 na-

1\ue000 Chart\ue000source:\ue000Congressional\ue000Research\ue000Service\ue000Report\ue00098-916,\ue000p.16.\ue000Figures:\ue000 %\ue000 of\ue000 GNI,\ue000 OECD\ue000 DAC\ue000 statistics\ue000 (Organization\ue000 for\ue000 Economic\ue000 Cooperation\ue000 and\ue000 Development\ue000 \u2013\ue000 Development\ue000 Assistance\ue000 Committee)\ue000 http://stats. oecd.org/wbos/Index.aspx?DatasetCode=TABLE1#

2\ue000 ODA\ue000is\ue000the\ue000OECD\u2019s\ue000o\ue001cial\ue000de\ue002nition\ue000of\ue000what\ue000\u201ccounts\u201das\ue000foreign\ue000assistance.
3\ue000 2007\ue000data\ue000is\ue000preliminary\ue000as\ue000of\ue000this\ue000writing.
4 OECD DAC statisticshttp://stats.oecd.org/wbos/I ndex.
aspx?DatasetCode=TABLE1#
5 Hudson Institute, The Index of Global Philanthropy 2007, p. 16, Chart 5.
tional security by helping to build stable, prosperous, and

peaceful\ue000 societies.\u201d\ue000 Secretary\ue000 of\ue000 Defense\ue000 Robert\ue000 Gates,\ue000 in\ue000 turn,\ue000has\ue000called\ue000for,\ue000\u201ca\ue000dramatic\ue000increase\ue000in\ue000spending\ue000on\ue000the\ue000 civilian\ue000instruments\ue000of\ue000national\ue000security\ue000\u2013\ue000diplomacy,\ue000stra-

tegic communications, \ue000oreign assistance, civic action, and

economic\ue000 reconstruction\ue000 and\ue000 development\u2026\u201d\ue000 The\ue000 chart\ue000 below\ue000 shows\ue000 the\ue000 relative\ue000 size\ue000 and\ue000 lack\ue000 of\ue000 balance\ue000 among\ue000 U.S.\ue000Government\ue000spending\ue000levels\ue000on\ue000these\ue000three\ue000categories\ue000 in\ue000FY2008.6

public Attitudes: Some argue that the public does not
prioritize\ue000foreign\ue000assistance.\ue000This\ue000impression\ue000may\ue000stem\ue000from\ue000
a \ue000act repeatedly demonstrated in polls: the public thinks

our\ue000 o\ue001cial\ue000 assistance\ue000 is\ue000 higher\ue000 than\ue000 it\ue000 is,\ue000 with\ue000 median\ue000 es- timates\ue000 at\ue000 around\ue000 20%\ue000 of\ue000 the\ue000 federal\ue000 budget,\ue000 and\ue000 median\ue000 levels\ue000 preferred\ue000 at\ue000 around\ue000 10%\ue000 of\ue000 the\ue000 budget.\ue000 The\ue000 actual\ue000 level\ue000is\ue000less\ue000than\ue0001%\ue000of\ue000the\ue000budget.

Rationale:\ue000Some\ue000argue\ue000that\ue000the\ue000U.S.\ue000takes\ue000a\ue000leadership\ue000role\ue000
and does more than its \ue000air share to serve the international

community.\ue000 That\ue000 argument\ue000 misses\ue000 both\ue000 the\ue000 practical\ue000 and\ue000 moral\ue000points.\ue000Increasing\ue000stability,\ue000prosperity\ue000and\ue000goodwill\ue000in\ue000 developing\ue000as\ue000well\ue000as\ue000post-crisis\ue000states\ue000and\ue000regions\ue000around\ue000 the\ue000 world\ue000 makes\ue000 us\ue000 safer.\ue000 For\ue000 example,\ue000 if\ue000 we\ue000 had\ue000 worked\ue000 with\ue000the\ue000Pakistani\ue000government\ue000a\ue000decade\ue000ago\ue000to\ue000help\ue000reduce\ue000

poverty, improve governance and build a more modern ed-

ucation\ue000system,\ue000madrassas\ue000(Islamic\ue000schools,\ue000some\ue000of\ue000which\ue000 are\ue000 extremist)\ue000 might\ue000 not\ue000 have\ue000 gained\ue000 such\ue000 in\ue003uence\ue000 and\ue000 Pakistan\ue000might\ue000be\ue000more\ue000stable\ue000(and\ue000might\ue000be\ue000contributing\ue000 less\ue000to\ue000the\ue000costly\ue000war\ue000we\ue000are\ue000\ue002ghting\ue000across\ue000the\ue000border\ue000in\ue000Af- ghanistan).\ue000 Morally,\ue000 most\ue000 Americans\ue000 would\ue000 agree\ue000 that\ue000 our\ue000

economic, security and cultural contributions do not, and
should not, diminish our duty and desire to ofer a hand up
to\ue000those\ue000most\ue000in\ue000need\ue000around\ue000the\ue000world.
6\ue000 Chart\ue000source:\ue000FY2008\ue000appropriations\ue000bills
BackgRound
POLICY
BRIEF
November 2008
1400 16th Street, NW
Suite 210
Washington, DC 20036
202-667-8227
reform@interaction.org
www.interaction.org
InterAction public policy Working Grou\ue000
Organization
URL
Academy \ue000or Educational Development
www.aed.org
Action Against Hunger
www.actionagainsthunger.org
Action Aid
www.actionaid.org
Adventist\ue000Development\ue000and\ue000Relief\ue000Agency\ue000\ue000\ue000
International
www.adra.org
A\ue000ricare
www.africare.org
Aga\ue000Khan\ue000Foundation\ue000U.S.A.\ue000
www.akdn.org
Air Serv International
www.airserv.org
American\ue000Friends\ue000Service\ue000Committee\ue000
www.afsc.org
American\ue000Jewish\ue000World\ue000Service\ue000
www.ajws.org
American\ue000Red\ue000Cross
www.redcross.org
American\ue000Refugee\ue000Committee\ue000
www.archq.org
AmeriCares
www.americares.org
Bread\ue000for\ue000the\ue000World
www.bread.org
CARE
www.care.org
Catholic\ue000Medical\ue000Mission\ue000Board
www.cmmb.org
Catholic\ue000Relief\ue000Services
www.crs.org
Center\ue000for\ue000Health\ue000and\ue000Gender\ue000Equity,\ue000Inc
www.genderhealth.org
Centre\ue000for\ue000Development\ue000&\ue000Population\ue000Activities\ue000
\ue000\ue000\ue000(CEDPA)
www.cedpa.org
CHF\ue000International
www.ch\ue002nternational.org
Child\ue000Health\ue000Foundation\ue000(CHF)
www.childhealthfoundation.org
Christian\ue000Children\u2019s\ue000Fund
www.christianchildrensfund.org
Church World Service
www.churchworldservice.org
Concern\ue000Worldwide
www.concernusa.org
Congressional Hunger Center
www.hungercenter.org
Counterpart International
www.counterpart.org
Ethiopian Community Development Council, Inc
www.ecdcinternational.org
Florida\ue000Association\ue000for\ue000Volunteer\ue000Action\ue000in\ue000the\ue000
\ue000\ue000\ue000Caribbean\ue000and\ue000the\ue000Americas\ue000(FAVACA)
www.favaca.org/
Food\ue000for\ue000the\ue000Hungry
www.fh.org
Friends\ue000of\ue000the\ue000World\ue000Food\ue000Program
www.friendsofwfp.org
Global Health Council
www.globalhealth.org
Habitat \ue000or Humanity International
www.habitat.org
Heartland Alliance
www.heartlandalliance.org
Hebrew\ue000Immigrant\ue000Aid\ue000Society\ue000
www.hias.org
Hei\ue000er International
www.heifer.org
InsideNGO
www.InsideNGO.org
Institute \ue000or Sustainable Communities
www.iscvt.org
Interplast
www.interplast.org
Int\u2019l\ue000Catholic\ue000Migration\ue000Commission\ue000
www.icmc.net
Int\u2019l\ue000Center\ue000for\ue000Research\ue000on\ue000Women
www.icrw.org
Int\u2019l\ue000Crisis\ue000Group\ue000
www.crisisweb.org
International\ue000Medical\ue000Corps
www.imcworldwide.org
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