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MDJul07

MDJul07

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Published by: InterAction on Jul 01, 2009
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DEVELOPMENTS
MONDAY
The Latest Issues and Trends in International Development and Humanitarian Assistance

July 2007
Vol. 25, No. 7
InterAction

FOREIGN AID
WhO DEcIDEs? AND FOR WhAt?
READ MORE ABOUt INtERActION\u2019s tEstIMONY ON thE hILLwww.in\ue003era\ue000\ue003ion.org
AROUND thE BEND4
NOtEs tO FORE12
ON GhANA20
ON thE hILL10
Managing Editor
Julie Montgomery
Editors
Robyn Shepherd
Kathy Ward
Copy Editors
Josh Kearns
Hilary Nalven
Advertising & Sales
Josh Kearns
Communications Department
Nasserie Carew, Public Relations
Josh Kearns, Publications
Julie Montgomery, Publications
Robyn Shepherd, Media
Editorial Committee

Andrea Barron
Evan Elliott
Estrellita Fitzhugh

InterAction
1400 16th Street, NW
Suite 210
Washington, DC 20036

Tel: 202.667.8227
publications@interaction.org
ISSN 1043-8157

Monday Developments is published 12
times a year by InterAction, the largest
alliance o\ue003 U.S.-based international
development and humanitarian

nongovernmental organizations. With

more than 160 members operating in
every developing country, we work
to overcome poverty, exclusion and
su\ue002ering by advancing social justice and
basic dignity \ue003or all.

InterAction welcomes submissions
o\ue003 news articles, opinions and
announcements. Article submission

does not guarantee inclusion in Monday
Developments. We reserve the right to
reject submission \ue003or any reason. It is at
the discretion o\ue003 our editorial team as to
which articles are published in individual
issues.

All statements in articles are the sole
opinion and responsibility o\ue003 the authors.

Articles may be reprinted with prior
permission and attribution. Letters to
the editor are encouraged.

A limited number o\ue003 subscriptions are
made available to InterAction member
agencies as part o\ue003 their dues. Individual
subscriptions cost $80 a year (add $15
\ue003or airmail delivery outside the U.S.)
Samples are $5, including postage.
Additional discounts are available \ue003or
bulk orders. Please allow 4-6 weeks \ue003or
delivery. Advertising rates are available
on request.

MONDAY DEVELOPMENTS
In this issue, we explore the current debates around \ue000oreign aid re\ue000orm. Learn what has worked in the past, what has not and where do NGOs see the
\ue000uture o\ue000 \ue000oreign aid. And most importantly, has \ue000oreign aid made a di\ue000\ue000erence?
Want more in\ue000ormation on theSe iSSueS?
Check out our resource page at www.interaction.org
reneW your SubScription today!
Visit www.interaction.org/monday
up next month
Look \ue001or the August issue o\ue001 Monday Developments
\ue001eaturing climate change and development.
\ue000eatureS
03
From the President: An Overview
04
Foreign Assistance Re\ue003orm: Then, Now and Around
the Bend
07
UK Development Assistance
08
Does Foreign Aid Really Work?
10

InterAction Testi\ue001es at Senate Foreign Relations Committee Subcommittee Hearing on Foreign Assistance Re\ue003orm

12

Foreign Assistance Re\ue003orm: Advice to Incoming
Director o\ue003 U.S. Foreign Assistance and USAID
Administrator Henrietta H. Fore

16
Aid E\ue002ectiveness and Absorptive Capacity: Which
Way Aid Re\ue003orm and Accountability?
18
Filmanthropy: Exploring the Changing Ways
Filmmakers and Nonpro\ue001ts Interact
20
Can Ghana Do it? On Track to Beat the MDG
Deadline to Reduce Poverty
24
Markets \ue003or Development
26
USAID and the Strategic Use o\ue003 Development
Assistance
aLSo in thiS iSSue
28\ue001
Inside Our Community
30\ue001
Position Announcements
intereSted in WritinG an articLe on \ue000aith
and deVeLopment?
Email Julie Montgomery, jmontgom@interaction.org by August 3.
P\ue001o\ue003o\ue002: (cover) \ue000our\ue003e\ue002y of i\ue002\ue003o\ue000kp\ue001o\ue003o.\ue000om; (Above) \ue000our\ue003e\ue002y of i\ue002\ue003o\ue000kp\ue001o\ue003o.\ue000om; Karl Grobl,
www.karlgrobl.\ue000om; i\ue002\ue003o\ue000kp\ue001o\ue003o.\ue000om; Ni\ue000ky Lewin
JULY 2007\ue001\ue001\ue001\ue001\ue001\ue001\ue001\ue002\ue001\ue001
FROM THE PRESIDENT
AN OVERVIEW
\ue000\ue00b\ue00d\ue005\ue008g\ue00a ass\ue008s\ue00e\ue001\ue00a\ue003\ue005 r\ue005\ue006\ue00b\ue00d\ue009

In January 2007, the InterAction community applauded the Bush administration\u2019s addition o\ue001 the words \u201creduce widespread poverty\u201d to the top-line goal o\ue001 its \ue001oreign assistance re\ue001orm program. We welcomed e\ue001\ue001orts to the increase in coherence o\ue001 U.S. \ue001oreign assistance, to build systems \ue001or accountability, and to track how U.S. \ue001oreign assistance dollars are spent. We were also con\ue001ronted with a rapid re\ue001orm process \ue001raught with misdirected e\ue001\ue001orts; and many within our community expressed serious reservations about its direction and intent.

It was within this context, that InterAction engaged in a broad, CEO-level dialogue to help shape our understanding o\ue001 the current U.S. \ue001oreign assistance re\ue001orms and how they \ue000t with our community\u2019s goals and the needs o\ue001 the poorest and most vulnerable people around the world. Our deliberations advanced NGO thinking about the ever-evolving \ue001oreign assistance environment. The range o\ue001 views within the InterAction community is quite broad, with some refected in this edition o\ue001 Monday Developments. I would like to share with you some key points o\ue001 our conversation.

InterAction members have a long history o\ue001 partnering with the U.S. government\u2019s \ue001oreign assistance e\ue001\ue001orts while also raising some $5 billion annually in additional private \ue001unding \ue001rom the American public to support our programs. As good stewards o\ue001 American generosity, we are committed to ensuring that U.S. \ue001oreign assistance accurately refects the lessons we have learned over decades o\ue001 implementing e\ue001\ue001ective programs in the \ue000eld. The \ue001ollowing principles should shape the \ue001oundation o\ue001 any e\ue001\ue001ective U.S. \ue001oreign assistance structure and make up the core language o\ue001 any new \ue001oreign assistance reauthorization:

a In order to encourage sel\ue001-su\ue001\ue000ciency, \ue001oreign assistance
programs must include local ownership o\ue001 programs and
partnerships with stakeholders.
a Sustainable development is a long-term process and requires
commitments that should not be compromised \ue001or the sake
o\ue001 short or long-term political goals.
a Foreign assistance programs must be coherent, not
\ue001ragmented. Elements o\ue001 the current re\ue001orms are a step in
the right direction.
a The goals o\ue001 the U.S., other donor nations, recipient

countries and multilateral institutions like the UN must as much as possible be in harmony and rein\ue001orce each other. For example, U.S. goals should support the Millennium Development Goals (MDGs).

a Humanitarian initiatives must be impartial and not be
dictated by the strategic or political signi\ue000cance o\ue001 any
nation.
a Gender equality must be placed at the heart o\ue001 program
strategies.

As we address immediate diplomatic and security challenges, our country continues to make investments that mitigate the destabilizing e\ue001\ue001ects o\ue001 the poverty, ignorance and hopelessness that \ue001oster militant ideologies and confict.

Yet, \ue001oreign assistance is more than a tool to achieve our national security interests. It is also a critical instrument to \ue001urther our role as world citizens and to present an accurate picture to the world o\ue001 American generosity and support \ue001or the people-centered, democratic values we hold dear. Based on the principles outlined

above, InterAction has always argued that sustainable development and poverty alleviation are laudable goals in and o\ue001 themselves that embody the \ue000nest principles o\ue001 our nation. We strongly believe that an approach to \ue001oreign assistance that \ue001ocuses on enabling the world\u2019s poorer countries to attain sel\ue001-su\ue001\ue000ciency and on providing impartial humanitarian assistance accomplishes this, strengthens our nation\u2019s reputation and advances our best national interests around the world.

To achieve some degree o\ue001 complimentarity between the three pillars o\ue001 U.S. \ue001oreign policy \u2013 de\ue001ense, diplomacy and development \u2013 there must be both parity between them and respect \ue001or development\u2019s need to operate \ue001ree \ue001rom undue infuence by diplomatic or security objectives.

All o\ue001 us recognize that our e\ue001\ue001orts to improve the well-being o\ue001 people occurs in a complex world. The challenges posed by confict, elusive peace, injustice, power imbalances, \ue001ailing states, human rights abuses, poor governance, militant ideologies, and the consequences o\ue001 increasingly scarce resources exacerbated by global warming all require greater attention in a more coherent U.S. \ue001oreign assistance \ue001ramework.

Parts o\ue001 the current re\ue001orm process do move us towards a more coherent \ue001oreign assistance program. Indeed, the evolution o\ue001 trans\ue001ormational diplomacy, or any \ue001uture strategy \ue001or U.S. \ue001oreign assistance, must take advantage o\ue001 the momentum o\ue001 current re\ue001orms and take an additional step o\ue001 including the Millennium Challenge Corporation, the President\u2019s Emergency Plan \ue001or AIDS Relie\ue001 (PEPFAR), and other elements o\ue001 \ue001oreign assistance in a coherent \ue001ramework. In this sense, the current re\ue001orms do not go \ue001ar enough, and must be more comprehensive.

Coherence across all civilian U.S. \ue001oreign assistance programs, and a \ue001ocus on improving the well being o\ue001 the poor with the space to shape e\ue001\ue001ective, long-term, and impartial programs that enhance local capacity and work to meet mutually agreed upon results: these are keys to the success o\ue001 any re\ue001orm. Simply put, \ue001or \ue001oreign assistance to be e\ue001\ue001ective, the development component o\ue001 trans\ue001ormational diplomacy must be more equal to \u2013 and certainly not subsumed under \u2013 de\ue001ense and diplomacy. Ultimately, this requires the establishment o\ue001 a Cabinet-level \ue001oreign assistance agency that operates and thrives alongside to the departments o\ue001 De\ue001ense and State.

As InterAction continues to work to create more e\ue001\ue001ective U.S. \ue001oreign assistance within the current \u201cF Re\ue001orm\u201d process, there is no \ue000xed InterAction position. Rather, we will continue to promote a bold agenda responsive to the inevitably changing environment in order to \ue001ocus U.S. development and humanitarian assistance on how to work with and improve the conditions o\ue001 the world\u2019s poor and most vulnerable. We will continue our e\ue001\ue001orts to advance e\ue001\ue001ective \ue001oreign assistance re\ue001orm, \ue001ocused on vulnerable and poor populations, that truly leverages U.S. NGO attempts to help create a better, more just and sa\ue001er world \ue001or all.

Sam Worthington
President and CEO, InterAction

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