PIA 2528

Foreign Aid

Donors and Local Governance

Governance: Reforms and Democracy

The New Orthodoxy

In Foreign Aid

Divisions Within the World

Before 1989North: Industrialist/ Developed Agriculture

Regime Type Democratic or notSocialist vs. Capitalist

South: LDC limited agric. IndustryUnderdeveloped Socialist or primitive capitalistCrony capitalismPatron-client

Divisions Within the World

Today

Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states vs. “Everybody else”

Millennium Challenge Account- Choose 15 poor, most market friendly countries.

Religion and Rejection of “Western” Model

Foreign Aid: Terms-Review

International Assistance

Foreign Aid- Loans vs. Grants

Technical Assistance- Contracts

Bilateral vs. Multi-lateral

Multilateral Issues: An Overview The Problem of Debt Stabilization vs. Conditionality Public Sector Reform Policy Reform IMF vs. World Bank vs. Bilateral Donors vs.

UNDPBridging LoansSectoral Loans and GrantsProject GrantsInternational Requirements vs. domestic political

response

Concepts and Terms: 21st Century

Neo-Orthodoxy

Heterodoxy

Stabilization/Reconstruction

Conditionality

Public Sector Reform

Major International Relations Terms

International Relations- Alternative Views

Structural realism; realpolitik

Balance of power

Bipolarity vs. Multi-polarity

Trans-nationalism

Major International Political Economy and Development Terms

Political Economy Tie InsHegemonyDependency TheoryStructuralismRegimeIndigenizationComplimentarityImport SubstitutionDependent Development

Foreign Aid vs. Technical Assistance

Current bias to international trade: Free Trade?

Governance and Nation Building: Democracy?

Millennium Challenge Account: Back to the future?

Get the LDC economy back to the 1950s Dependent development

Is it dependent and is it development?

Foreign Aid vs. Technical Assistance1. Impact of culture on Change

a. Corruption, clan and ethnicity

b. Clans in Somalia and taxi drivers in Washington

2. Impact of Standard Operating Procedures (SOPs)

3. The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics for Clear Decision-making

4. Impact of Intellectual systems and ideologies influences and beliefs (Clash of Culture vs. End of History)

Governance Reforms

• Democratic Governance

• Stabilization and Conditionality Requirements- Free Trade and Open Currency

• Public Sector Reform

• Rule of Law and Anti-Corruption

Administrative Reforms

Reform of the bureaucracy: Review

a. Cutback the civil service the infamous 19% first cut

b. Individual Consultants and Contractors work with investments and the

service/commercial sector 

Administrative Reforms: The World Bank Model

  1. Strategic Planning and Management 

2. Deregulation 

3. Performance Management 

4. Merit Recruitment

5. Decentralization: Development of Local Government and Support for Civil Society

Coffee Break

Fifteen Minutes

Ghana

Democracy and Governance Program

Ghana

Case Study of Civil Society Reforms

Chapter 8, Foreign Aid and Foreign Policy: Lessons for the Next Half Century, (Picard, Robert Groelsema and Terry F. Buss, eds. (New York: M.E. Sharpe, 2008), pp. 146-172)

USAID Ghana Activities

Economic Growth

Health

Basic Education

Democratic Governance

Ghana USAID Activities

Source: USAID/Ghana Country Strategic Plan (2004-2010)

Date Published: May 2003

USAID Country Plan-Ghana

Seek eligibility for Millennium Challenge Account Investment (poor, per capita income below $1,415)

Qualify- Good governance, market friendly-16 indicators

Goal: Support Accelerated Economic Growth In place in 15 countries, 2005 or 2006 Fully up and running, 2008 at $5 billion per year Focus: Infrastructure

USAID Country Plan-Ghana

Democratic Governance: SO 5 (Strategic Objective)

Note: Currently no focus on civil service reform

Two components: National and Local

Ghana Democracy and Governance-National Level

Historically- Electoral Processes.

Legislative Reform: Long term PSC (Personal Services Contractor- Legislative Specialist)

National Civil Society Development

Local Level: Democracy and Governance

Source:

ASSESSMENT REPORT: “Government Accountability Improves Trust” (GAIT)

Date: December 8, 2003

Non-Competitive Contract:

Public Administration Service

Assessment Team: Mixed Team

Kwesi Appiah: Ghana Consultant Robert J. Groelsema: USAID Washington

(D&G) Avril Kudzi: USAID Ghana (D&G) Ted Lawrence: USAID Ghana (Legislative

Specialist) Elsie Menorkpor (USAID Ghana

(Education Specialist) Louis A. Picard (Team Leader)

Decentralized Governance: Status

Current Contractor: Cooperative League of the United States of America (CLUSA)

Operates in the U.S. as National Cooperative Business Association

Assessment Report: Submitted December 8, 2003

New Grant: Cooperative Agreement- 2004-2007

RFA (Request for Application) published December 18, 2003 (Competitive Bid)

Applications Closed: February

Grant Awarded: Estimate- April, 2004

3-6 year grant up to $11 million

Goal of GAIT* Promote Partnership between Civil Society

Organizations and Local Government

Institutional Structure: Creation of District Level Civic Unions to facilitate communication

Concern: Sustainability of structures after project completed

*Government Accountability Improves Trust

Nature of GAIT Activities

Training and Workshops

Technical assistance to Civic Unions and Local Governments

Support public (town hall) style meetings

Key: Activities support interface of LG and CSOs (E-governance)

Decentralized Governance and E-Governance

Leland Initiative Money: Ended in 2003. Two or three centers established. Not clear that this was mission priority (Focus: e-Governance)

Assessment Report: Recommended Local Government/Civil Society “One Stop Shop” for dissemination of information

Possibly Operated by Civic Unions

E: Governance

Tele-cottage Model- widely used in Demnets (Democratic Network Organizations) in Eastern Europe

Technical Assistance (poss. Peace Corps volunteer)

Simple, on line publication and education programs (Logon- South Africa)

E-Governance

simple publications, posters, public information presentations

simple software programs designed to demonstrate basic principles of governance

Includes the use of advocacy, information rights, the functioning of district government bodies and administrators and the functioning of committees

Other Donors: Civil Service and Decentralization Reform

UNDP- Normally bids, provides technical assistance

World Bank- EOP (Expression of Interest) invitation to bid (RFP)

DANIDA (Denmark), CIDA (Canada), DFID- (UK), GTZ (Germany) interested in Governance

Private Foundations: McArthur, Gates, Ford Foundation- re. E-Governance

Impact

Evidence of community based civil society groups strengthened

Discussion

Where are we?

What don’t we know?

Can Governance be Promoted by Donors?