understandingU.S. foreign assistance by robert swope

Agenda• Why the U.S. gives foreign aid?

• Data on the main USG organizations disbursing foreign assistance funds

• Aid priorities & recipient countries

• ODA Stats

U.S. foreign assistance

Moral duty?Self-interest?

Why the U.S. gives foreign aid?

National security—To support efforts to stabilize conflict zones where American interests are at stake and strengthen allied country security institutions. And to address poverty and injustice, which fuel social tensions that can destabilize communities and countries, posing risks to U.S. interests.

Commercial interests—By helping to improve economic growth U.S. assistance can support the generation of demand for U.S. goods, increase market access, and build stable trading partners.

"That was the most expensive No vote you ever cast“– UN Ambassador Thomas Pickering –

So who does it?

12 departments25 agencies 60 government offices

U.S. House of Representatives Committee on Foreign Affairs. Berman Introduces Bipartisan Legislation Requiring U.S. Foreign Assistance Strategy. [Press Release.] April 28, 2009. http://www.internationalrelations.house.gov/press_display.asp?id=614 (accessed October 1, 2010).

“The Diaspora”

Founded in 1961 during the Kennedy Administration; predecessors began in 1915

Technically “independent”

However, USAID's Administrator works under the direct authority and foreign policy guidance of the Secretary of State.

Two main types of assistance: technical & financial

Created in 1789 and was the first executive department established.

Prepares joint budget for most U.S. foreign assistance, but not all (e.g. food aid)

Home to: Office of the Global Aids Coordinator (PEPFAR) & the Director of Foreign Assistance (office coordinates U.S. foreign assistance programs

FY 2010 $22 billion

FY 2010 $22.13 billion

Administers all traditional aid-funded military assistance following the policy guidance of the Department of State

Foreign military financing, international military education and training, peacekeeping operations funds, and certain military development assistance programs in places like Iraq and Afghanistan (“Overseas Contingency Operations” –OCO)

FY2010 budget: $4.7 billion in traditional assistance, not including OCO

Administers U.S. contributions to and participation in the World Bank and other multilateral programs

Deals with foreign debt reduction issues, including U.S. participation in the Highly Indebted Poor Countries (HIPC) initiative.

Manages technical assistance programs offering financial advisors to countries implementing major economic reforms and combating terrorist finance activity

FY2010 budget: $2.7 billion

Direct donation of food aid for emergency relief and development

Sales of U.S. agricultural commodities to developing countries and private entities at below market prices & grants of agricultural commodities tied to policy reform.

Technical assistance to farmers, farm groups and agribusinesses

FY2010 budget: $2.3 billionMetric tons of food delivered: 2,541,253; 65 million people reached

Founded in 2004

Purpose is assisting countries in a few low- and lower-middle income countries that have demonstrated a strong commitment to political, economic, and social reforms

“Compacts” with 22 recipient countries emphasizing construction of infrastructure

FY2010 budget: $1.1 billion

Aid Objectives …1. Investing in People: $10.9 billion

2. Peace and Security: $10.3 billion ($16 billion w/DoD)

3. Promoting Economic Growth and Prosperity: $5.2 billion

4. Humanitarian Assistance” $5 billion

5. Governing Justly & Democratically: $3.6 billion

Based off of FY 2010 DoS/USAID budget, including supplementals and OCO programs. Does not include Department of Treasury, MCC, or USDA Food Aid

Aid Recipients …U.S. economic assistance went to 182 countries

Afghanistan remained the top recipient of total U.S. economic and military assistance—both obligations and disbursements—for a third consecutive year. Iraq had held the top spot from 2003 to 2007.

Haiti was a newcomer to the list of top ten recipients as West Bank/Gaza dropped to 14th.

http://gbk.eads.usaidallnet.gov/data/fast-facts.html

Aid Recipients …

ODA“Total Net

Flows”Definition: The sum of official development assistance (ODA) and other official flows (OOF). Represents the total (gross or net) disbursements by the official sector of the creditor country to the recipient country.*

Does not include private giving (i.e. Gates Foundation) but does include other official items not captured under the official ODA definition.

*http://stats.oecd.org/glossary/detail.asp?ID=6026

$214 billion1.46% of GNI

ODA“Total Net

Flows”