*****Aff Answers*****

Uniq: Overstretch Now

USAID budget overstrech now sequestration and security concerns

Biron !
[Carey Biron, Inter Press Service, Abrupt U.S. Cuts Could Devastate Overseas Develop ent Pro!ra es "ebruary ## #$%& 'ttp())***.ipsne*s.net)#$%&)$#)abrupt+u+s+cuts+could+devastate+overseas+develop ent+pro!ra es), -AS.I/01O/, "eb ## #$%& 2IPS3 + -it' 4ust a *ee5 to !o be6ore assive, indiscri inate spendin! cuts 5ic5 in across t'e U.S. !overn ent, policy a5ers and 'u anitarian !roups are beco in! increasin!ly an7ious about t'e endurin! i pact t'e cuts *ould 'ave on t'e co unities across t'e !lobe assisted by U.S.+6unded develop ent and aid pro!ra es. [-,e 6ear t'at t'e U.S.a!encies t'at oversee 'u anitarian response *ill be put in an i possible position, c'oosin! bet*een savin! lives in one country over anot'er , 8$ 'u anitarian !roups *rote in an open letter to
policy a5ers t'is *ee5. -e also as5 t'at any additional resources not co e 6ro ot'er critical poverty 6i!'tin! accounts *it'in t'e International A66airs bud!et, *'ic' *ill also be under pressure. 1'e !roups *arn t'at costs 6or international 'u anitarian needs 'ave already beco e

overstretc'ed due to security concerns in Syria, 9ali, Con!o and Sudan , as *ell as on!oin! 6ood security issues across t'e Sa'el. In Syria alone, t'ey note, 'u anitarian+related costs are esti ated at %.: billion dollars 4ust t'rou!' ;une, double t'e 6i!ure since Septe ber. Drivin! t'ese concerns is t'e suddenly real possibility t'at a piece o6
co pro ise le!islation si!ned into la* in Au!ust #$%%, ai ed at 6orcin! <epublicans and De ocrats to a!ree to a lon!+ter deal to brin! do*n t'e country=s 6orei!n debt, could be enacted startin! 9ar. #. >no*n 'ere as t'e se?uester, t'e process stipulated t'at i6 suc' a deal *ere not a!reed upon by t'e end o6 last year, bud!ets across t'e 6ederal !overn ent *ould be su arily slas'ed by @: billion dollars t'is 6iscal year and %.# trillion dollars over a decade. 9ost 6rustratin! to econo ists and ot'er observers is t'at t'e se?uester does not cover ost 'ealt'care+related spendin!, t'e source o6 uc' o6 t'e country=s soarin! de6icit. Aet because t'e le!islation *ould beco e la* part*ay t'rou!' t'e current 6iscal year, all cuts *ould 'ave to be done on an e7pedited basis to eet deadline re?uire ents. -'ile a inor last+ inute a!ree ent *as struc5 in late Dece ber, it erely pus'ed o66 a decision on t'e se?uester. 9ean*'ile, De ocrats, led by President Barac5 Oba a, are insistin! t'at t'e debt proble needs to be solved by raisin! additional ta7 revenue, *'ile <epublicans aintain t'at t'e oney needs to co e solely 6ro lo*erin! !overn ent spendin!. I portantly, t'e se?uester cuts *ere

cra6ted to be du b, in t'at neit'er policy a5ers nor a!ency 'eads *ould be allo*ed to ai t'e cuts at *aste or areas o6 lesser priority. 1'e cuts are also purpose6ully pain6ul to bot' De ocrats, *'o typically 6avour social pro!ra es, and <epublicans,
*'o typically 6avour de6ence spendin!. "or t'ese reasons, ost observers 'ad e7pected t'at le!islators couldn=t possibly allo* t'e se?uester to !o t'rou!'. Analysts, a6ter all, are 6orecastin! an econo ic contraction o6 up to $.B percent, *it' ra i6ications 6or essentially all U.S.citiCens. .o*ever, barrin! 6urt'er last+ inute deals D and Con!ress is currently on a %$+day brea5 D a!encies t'rou!'out t'e states and 6ederal !overn ent are currently 6orced to scra ble to plan 6or *'at could be one o6 t'e ost destabilisin! oves t'e country 'as ever in6licted on itsel6. Cuts cost lives /o e7e ption *ill be ade 6or overseas spendin!, despite constitutin! less t'an one percent o6 overall 6ederal spendin!. Indeed, as reported in a ne* public poll released "riday by t'e Pe* <esearc' Center, U.S. respondents pre6erred cuttin! aid to t'e *orld=s needy ore t'an any o6 %@ ot'er bud!et options. Accordin! to in6or ation released t'is *ee5 by ;o'n >erry, t'e ne* secretary o6 state, t'e State Depart ent and USAID, t'e country=s ain overseas aid a!ency,

*ould need to cut around #.B billion dollars 6ro t'is year=s bud!et. 1'at *ould entail c'oppin! #$$ illion dollars in 'u anitarian assistance and 8$$ illion dollars in !lobal 'ealt' pro!ra es. 1'at *ould include a reduction o6 &$$ illion dollars in t'e bud!et o6 t'e 0lobal "und to "i!'t AIDS, 1uberculosis and 9alaria D t'is
year alone. Suc' a reduction *ould 'inder our ability to provide li6e savin! 6ood assistant to # illion people and USAID *ould 'ave to cease, reduce, or not initiate assistance to illions o6 disaster a66ected people, >erry *rote to le!islators. .e also noted t'at t'e cuts *ould !ravely i pede e66orts at reducin! AIDS+related and c'ild deat's. 1'e i portant t'in! to understand is t'at t'ese cuts *ill cost lives, said ;ere y >adden, senior le!islative ana!er *it' InterAction, an alliance o6 U.S. /0Os *or5in! in developin! countries. -e=ve ade very si!ni6icant pro!ress over t'e past %$ years, *it' real people i provin! t'eir lives, and t'is *ould set t'at process bac5 enor ously, devastatin! actual people on t'e !round. Se?uester cuts *ould lead to so e t'ree illion c'ildren losin! access to t'e basic education t'ey=re currently receivin!, >adden says. 1*o illion people *ould also see reductions or outri!'t cuts in 6ood aid, *'ile B$$,$$$ c'ildren *ould lose nutrition assistance. 21'e !roup is o66erin! ore 6i!ures 'ere and 'ere.3 Accordin! to InterAction esti ates, t'e United States 'as 'elped so e 8$$ illion people !et out o6 e7tre e poverty over t'e past t*o decades. East year alone, U.S. 6ood aid reac'ed around F$ illion people. /e* baseline Despite t'e 6act t'at t'e se?uester *as never eant as policy, its

i pact *ould reverberate 6or years. Accordin! to a ne* article by 1ony P. .all, a 6or

er U.S. a bassador to t'e -orld "ood Pro!ra e, t'e current bud!et ne!otiations could prove to be t'e ost 6ar+reac'in! 6or t'e ne7t decade. Pointin! to t'e lon!+ter ra i6ications o6 even te porarily 'altin! basic education, nutrition or 'ealt' pro!ra es, includin! vaccines, >adden li5e*ise *arns t'at t'e i pact *ould be enor ous. "urt'er, t'is

ne*ly reduced 6undin! could constitute baseline bud!ets in t'e 6uture . I6 t'e bud!et in use at t'e end o6 6iscal year #$%& is, say, : percent lo*er t'an in previous years, and t'at=s t'e basis 6or subse?uent years , *e=re tal5in! about
illions o6 people *'o don=t 'ave access to t'e 6ood, vaccines or basic education t'ey need, >adden says. 1'ere are so any places around t'e *orld ri!'t no* t'at need 'elp, and *e need to ensure, 6irst, t'at *e do no 'ar . Un6ortunately, t'at see s to be t'e direction *e=re 'eadin! in at t'e o ent.

Uniq: "e#ican Aid Increasing

$oreign aid to "e#ican deve%o&'ent is increasing
(asey ), correspondent at t'e -all Street ;ournal, 2/ic'olas, U.S. S'i6ts 9e7ico Dru! "i!'t, G)%F)%#, 'ttp())online.*s4.co )article)SB%$$$$@F#&GB&G$88&F#$#$8:F@$$$8B&@G$@B:GB#.'t l3 ))EA
9HIICO CI1AJSecretary o6 State .illary Clinton eets 'er 9e7ican counterparts at a security su it in -as'in!ton 1uesday to discuss t'e ne7t p'ase in t'e dru! *ar( 'o* to train t'e 4ud!es and prosecutors t'at *ill be tryin! suspected dru! lords. 1'e 9erida Initiative, t'e U.S.Ks L%.G billion assistance pro!ra to 9e7ico, be!an ostly as a eans to buy ilitary 'ard*are li5e Blac5 .a*5 'elicopters 6or 9e7ico. But over t'e past t*o years, it 'as entered a ne* p'ase, in *'ic' purc'ases 6or t'e 9e7ican ilitary are ta5in! a bac5 seat to easures to end t'e branc'es o6 9e7icoKs civilian !overn ent. 1'e 6or er director o6 ColoradoKs penitentiary syste 'as trained ore t'an :,$$$ 9e7ican prison o66icials in recent years. 9e7ican 4urists are runnin! oc5 trials *it' visitin! A erican 4ud!es to prepare 6or a transition to oral 'earin!s t'at *ill replace 9e7icoKs eni! atic closed+door eetin!s *'ere sentences are 'anded do*n. MDi66erent t'in!s 'ave co e to t'e 6ore at di66erent ti es, but stren!t'enin! t'e rule o6 la* in 9e7ico is t'e area t'atKs crucial ri!'t no*,M says <oberta ;acobson, t'e Assistant Secretary o6 State 6or -estern .e isp'ere A66airs. O66icials in bot' countries increasin!ly believe t'e root o6 9e7icoKs proble lies in creatin! an 'onest police 6orce, pro6essional 4ud!es and a prison syste co parable *it' t'at in t'e U.S. 1'e c'allen!es are 'arder to easure but *ill ta5e center sta!e at t'e so+called .i!'+Eevel Consultative 0roup on 1uesday, *'ere 9rs. Clinton *ill be 4oined by Deputy Secretary o6 De6ense As'ton Carter, Attorney 0eneral Hric .older and top o66icials 6ro 9e7ican President "elipe CalderNnKs cabinet. 1'e t*o sides *ill also discuss topics ran!in! 6ro border security to seiCin! assets o6 dru! cartel e bers in t'e U.S. MOur e66orts to con6ront transnational cri e on bot' sides o6 t'e border bene6ited 6ro a clear understandin! t'at *e 'ad to ultitas5,M says 9e7ican A bassador to t'e U.S. Arturo Saru5'On. -'ile 9e7ico 'as 'ad success at catc'in! cri inals, itKs 'ad less luc5 in puttin! t'e be'ind barsJt'e country 'as a ea!er #P conviction rate 6or ost cri es. A ne* test ca e 4ust last *ee5 *it' t'e capture o6 ;or!e MHl CossM Costilla, t'e alle!ed boss o6 9e7icoKs po*er6ul 0ul6 Cartel. .e is t'e #&rd in 9e7icoKs M&F 9ost -antedM list to 'ave eit'er been 5illed or captured under 9r. CalderNnQ a6ter si7 years o6 6i!'tin!, t'e ori!inal 'eads o6 9e7icoKs dru! !an!s are ostly !one. 1'at reality is bein! re6lected in 'o* U.S. aid is bein! spent in 9e7ico. Assistance to t'e 9e7ican ilitary 'as nearly collapsed, *it' counternarcotics and security aid 6allin! 6ro a 'ei!'t o6 around L:#G illion in #$%$ to LBF.: illion planned 6or ne7t year. 9ean*'ile oney eant 6or stren!t'enin! institutions 6ro la* sc'ools to prisons doubled in t'e last year, to L#$%.@ t'is year 6ro L%$: illion in #$%%. 1rainin! 9e7ico to 'andle its o*n stru!!le could be ore cost+e66ective 6or t'e U.S.Jtotal aid t'is year to 9e7ico is at L&&$ illion, less t'an 'al6 its nu ber #$%$Jin lar!e part because trainin! police and prosecutors is less e7pensive t'an 6inancin! a ilitary *it' bi! purc'ases li5e 'elicopters. One e7a ple bot' sides are toutin! 'as to do *it' 9e7icoKs courts, *'ic' are under!oin! a radical over'aul. Unli5e t'e U.S., ost trials in 9e7ico ta5e place in closed proceedin!s *'ere 4ud!es arenKt present nor even eet t'e de6endant. Attorneys and *itnesses !at'er in a cubicle *'ere a cler5 ta5es notes and prepares a 6ile, later sent to t'e 4ud!e 6or a decision. 1'ere are no 4uries.

New aid is co'ing

Additiona% aid is being su&&%ied to Syria
*ichter !, correspondent at t'e Eos An!eles 1i es, 2Paul, U.S. to !ive L%$$ illion ore to aid displaced Syrians, :)@)%&, Eos An!eles 1i es, 'ttp())articles.lati es.co )#$%&) ay)$@)*orld)la+6!+*n+us+aid+displaced+syrians+ #$%&$:$@3 ))EA -AS.I/01O/ ++ 1'e Oba a ad inistration is providin! an additional L%$$ illion 6or 'u anitarian aid 6or displaced Syrians, o66icials said -ednesday, brin!in! to L:%$ illion t'e total U.S. aid co it ent since t'e civil *ar be!an ore t'an t*o years a!o.R R 1'e ne* aid, *'ic' Secretary o6 State ;o'n ". >erry *ill announce 1'ursday durin! a visit to <o e, *ill 'elp support %.8 illion civilians trapped by violence *it'in Syria=s borders, as *ell as re6u!ees *'o 'ave 6led to ca ps in nei!'borin! ;ordan, Eebanon and 1ur5ey, t'ey said. R R R 1'e decision is not lin5ed to -'ite .ouse deliberations over *'et'er t'e U.S. s'ould provide *eapons and a unition to rebels 6i!'tin! t'e !overn ent o6 President Bas'ar Assad or to !ro*in! suspicions t'at Syrian 6orces used c'e ical *eapons. R R 1'e ad inistration provides so e nonlet'al aid to t'e rebels, suc' as co unications e?uip ent, ilitary+style rations and banda!es. But U.S. o66icials 6ear t'at ar in! t'e insur!ents could *ind up stren!t'enin! e7tre ist ilitias, includin! 6actions lin5ed to Al Saeda.R R 1'e additional aid *ill 'elp t'e Oba a ad inistration de6lect criticis t'at it is not doin! enou!' to deal *it' a con6lict t'at 'as 5illed nearly @$,$$$ Syrians and t'reatens to en!ul6 t'e broader 9ideast re!ion. R R 1'e oney *ill be ad inistered by United /ations a!encies to 'elp provide 6ood, s'elter and 'ealt'care at re6u!ee ca ps. 1'e aid also *ill include so e cas' pay ents to civilians in Syria. 1'e United States is t'e lar!est donor o6 'u anitarian relie6 6or Syrians.

Oba'a signs off new aid to Syria

+abott !, C// correspondent, 2Hlise, -'ite .ouse si!ns o66 on ne* aid 6or Syrian rebels, 8)G)%&, C//, 'ttp())***.cnn.co )#$%&)$8)$G)*orld)us+syria+aid3 ))EA -as'in!ton 2C//3 ++ President Barac5 Oba a 'as si!ned o66 on a ne* pac5a!e o6 nonlet'al aid 6or Syrian rebels, U.S. o66icials tell C//, si!nalin! 'is ad inistration is cautiously *adin! 6urt'er into t'e con6lict.R O66icials said t'e -'ite .ouse approved t'e pac5a!e at a eetin! o6 t'e /ational Security Council last *ee5. R 1'e ove re6lects *'at o66icials describe as a ra ped+up e66ort to c'an!e t'e ilitary balance on t'e battle6ield in Syria. R It 6ollo*s a decision by Oba a last ont' to send 6ood and edicine to t'e rebels, t'e 6irst direct U.S. support 6or t'e ar ed opposition.R Syrian anti?uities looted 6or !un oney <ape as a tool o6 *ar in Syria B,$$$T 5illed in SyriaKs deadliest ont' R Ot'er a!encies 'ave not been brie6ed on t'e 6inal ele ents o6 t'e pac5a!e, *'ic' is e7pected to be detailed at a -'ite .ouse eetin! t'is *ee5.R M-e 'ave no ne* decisions on assistance to announce at t'is point and continue to revie* every possible option t'at could 'elp end t'e violence and accelerate a political transition,M said Caitlin .ayden, a /ational Security Council spo5es*o an.R O66icials said it is e7pected to include e?uip ent suc' as body ar or, ni!'t vision !o!!les and ot'er ilitary e?uip ent t'at is de6ensive in nature, but could be used to aid in co bat by Syrian rebels battlin! 6orces loyal to President Bas'ar al+Assad.R 1'e pac5a!e bein! discussed, 'o*ever, still 6alls s'ort o6 t'e 'eavy *eapons and 'i!' tec' e?uip ent sou!'t by t'e rebels.R Oba aKs national security tea and e bers o6 Con!ress 'ave repeatedly ur!ed t'e president to increase t'e direct aid 6or t'e rebels.R 1'ey ar!ue suc' a step *ould stren!t'en t'e 'and o6 oderate e bers o6 t'e opposition and a5e t'e less reliant on *ell+ar ed e7tre ist ele ents *it'in t'eir ran5s. R Secretary o6 State ;o'n >erry 'as pus'ed 6or ore a!!ressive U.S. involve ent in Syria since ta5in! o66ice in "ebruary. R 1'e ove co es as Britain and "rance are leadin! e66orts to li6t a Huropean Union ar s e bar!o on Syria. Bot' 'ave su!!ested t'ey are prepared to 4oin nations li5e Satar is providin! t'e rebels *it' *eapons and are ur!in! t'e United States to do t'e sa e.R A pus' last su er 6ro CIA, Penta!on and State Depart ent leaders *as re4ected by t'e -'ite .ouse. At least 6or no*, it re ains opposed to ar in! t'e opposition, 6earin! t'at U.S.+provided *eapons could *ind up in t'e *ron! 'ands.R 1'e Oba a ad inistration 'as 6unneled L&@: illion in 'u anitarian aid to Syria t'rou!' international institutions and non!overn ental or!aniCations.R In addition, -as'in!ton 'as provided ore t'an L%$$ illion to t'e political opposition and 'as pressed t'e to establis' a leaders'ip structure.R But t'e Syrian Opposition Council, t'e ain Syrian opposition !roup, 'as roundly criticiCed t'e United States 6or re6usin! to provide badly+needed support to or!aniCe a transitional !overn ent and broaden its support inside Syria.

$oreign aid is a%ready going to ,gy&t

-%u'er !, Plu er is a reporter at t'e -as'in!ton Post *ritin! about do estic policy, particularly ener!y and environ ental issues, 1'e U.S. !ives H!ypt L%.: billion a year in aid. .ere=s *'at it does., F)G)%&, -as'in!ton Post,

'ttp())***.*as'in!tonpost.co )blo!s)*on5blo!)3*p)#$%&)$F)$G)t'e+u+s+!ives+e!ypt+%+:+billion+a+year+in+aid+'eres+ *'at+it+does)))EA 1'e bi!!est policy debate roilin! -as'in!ton ri!'t no* is *'et'er to continue A erica=s annual L%.: billion aid pac5a!e to H!ypt. A6ter all, H!ypt 4ust 'ad a coup in *'ic' t'e ilitary ousted t'e country=s elected president, 9o'a ed 9orsi. Doesn=t t'at *arrant a responseU1'e Oba a ad inistration says it pre6ers to 5eep aid 6lo*in! to H!ypt 6or no* J 6or stability=s sa5e. It *ould not be in t'e best interests o6 t'e United States to i ediately c'an!e our assistance pro!ra to H!ypt, said -'ite .ouse spo5es an ;ay Carney. Aet so e 5ey e bers o6 Con!ress are callin! 6or a cuto66. -e need to suspend aid to t'e ne* !overn ent until it does in 6act sc'edule elections and put in place a process t'at co es up *it' a ne* constitution, said Sen. Carl Eevin 2D+9ic'.3. R So 'ere=s a ?uic5 pri er on t'e situation J *'at *e actually !ive H!ypt, *'y *e send so uc' aid, and under *'at circu stances *e i!'t cut it o66. -'at do *e actually !ive to H!yptU Bet*een %G8@ and #$%%, t'e United States 'as !iven H!ypt about LF%.B billion in bilateral ilitary and econo ic aid. 1'at=s ore t'an *e=ve !iven to any ot'er country over t'at ti e 6ra e save 6or Israel. R A recent report 2pd63 6ro t'e Con!ressional <esearc' Service lays out t'e details. 1'e bi!!est c'un5 is ilitary aid, avera!in! about L%.& billion per year since %G@F, *it' uc' o6 t'at ilitary e?uip ent. "or instance, H!ypt plans to ac?uire %,#$$ 9%A% Abra s Battle tan5s 6ro t'e United States. 1'e co ponents are 4ointly anu6actured in bot' countries and s'ipped to H!ypt 6or 6inal asse bly. 1'is year, t'e United States is also s'ippin! #$ "+%B 6i!'ter 4ets overseas. Plus t'ere=s oney 6or border security alon! t'e Sinai Peninsula.R H!ypt also !ets a 6e* special 6inancin! provisions, says C<S, includin! t'e ability to deposit its 6unds at an interest+bearin! account at t'e "ederal <eserve Ban5 o6 /e* Aor5. 1'e nation also !ets to en!a!e in cas'+6lo* 6inancin! to pay 6or ilitary e?uip ent, a special provision not available to ost recipients, and one t'at allo*s H!ypt to ne!otiate bi!!er ar s purc'ases. R On top o6 t'at, H!ypt received about L#:$ illion last year in econo ic aid, oney t'at !oes to*ard 'ealt', education, as *ell as de ocracy pro!ra s. 2In past years, t'e United States also 6unded bi! USAID in6rastructure pro4ects in sanitation, co unications, and so 6ort'. But t'at *as scaled bac5 in t'e %GG$s.3R Obli!atory pyra ids s'ot. 2Si on Denyer)1'e -as'in!ton Post3 R Can you put t'ose nu bers in conte7tU In 6iscal year #$%%, t'e United States 'anded out about L8G billion in ilitary and econo ic aid all told. H!ypt !ot about L%.: billion J t'e 6ourt'+lar!est recipient a6ter Israel 2L& billion3, Ira? 2L#.% billion3, and Pa5istan 2L%.F billion3. R On H!ypt=s end, t'e assistance plays an out+siCed role in t'e bud!et. /o one 5no*s t'e e7act nu bers, but by one one count, U.S. ilitary aid covers as uc' as @$P o6 t'e De6ense 9inistry=s *eapons procure ent costs. 2In #$%%, a Cornell econo ist esti ated t'at U.S. aid ade up one+t'ird o6 H!ypt=s broader ilitary bud!et.3 -'y do *e !ive H!ypt so uc' aidU Since t'e late %GF$s, U.S. policy a5ers 'ave 4usti6ied t'e aid as a *ay to stabiliCe t'e re!ion and pro ote its interests. .ere=s C<S layin! out t'e o66icial line( Interests include aintainin! U.S. naval access to t'e SueC Canal, aintainin! t'e %GFG Israel+H!ypt peace treaty, and pro otin! de ocracy and econo ic !ro*t' *it'in H!ypt, t'e re!ion=s lar!est Arab country. 9ore recently, t'e Oba a ad inistration 'as insisted t'at aid to H!ypt is crucial to avoidin! broader proble s. A 'old up o6 aid i!'t contribute to t'e c'aos t'at ay ensue because o6 t'eir collapsin! econo y, said Secretary o6 State ;o'n >erry in ;anuary. 1'eir bi!!est proble is a collapsin! econo y. 2I6 it see s odd t'at ilitary aid *ould be so crucial to H!ypt=s econo y, consider t'is( 1'e H!yptian ilitary is utterly !i!antic, one o6 t'e lar!est in t'e *orld, controllin! bet*een %$ and &$ percent o6 t'e econo y and e ployin! 'undreds o6 t'ousands o6 H!yptians.3 Is H!ypt=s econo y really in suc' bad s'apeU Aes. "or ore on t'at, read t'is intervie* *it' Caroline "reund, *'o notes t'at H!ypt=s econo y isn=t !ro*in! nearly 6ast enou!' to provide 4obs 6or everyone. 1'at=s certainly not t'e *'ole reason 6or H!ypt=s crisis. But *it'out bi! structural re6or s, it=s 'ard to see tur oil in t'e country 6ro subsidin!. .ave la* a5ers ever *avered on !ivin! aid be6oreU Aes. In #$%#, a6ter H!ypt elected 9o'a ed 9orsi, *'o 'ailed 6ro t'e 9usli Brot'er'ood, so e la* a5ers started to *orry t'at H!ypt *ould no lon!er see eye+to+eye *it' t'e United States, especially on topics li5e Israel. 1'e relations'ip 'as never been under ore scrutiny, said <ep. >ay 0ran!er 2<+1e7.3, a 5ey la* a5er in c'ar!e o6 6orei!n aid 6unds. In t'e end, Con!ress put a 6e* conditions on 6urt'er aid. 1'e #$%# appropriations bill, 6or instance, included lan!ua!e speci6yin! t'at H!ypt *ouldn=t receive any aid until t'e Secretary o6 State certi6ied t'at t'e country *as livin! up to its end o6 its %GFG treaty *it' Israel. Isn=t t'e United States supposed to cut o66 all ilitary aid a6ter a coupU In t'eory, yes. 1'e "orei!n Assistance Act, 6irst passed bac5 in %GB%, says so ?uite clearly( /one o6 t'e 6unds appropriated or ot'er*ise ade available pursuant to t'is Act s'all be obli!ated or e7pended to 6inance directly any assistance to t'e !overn ent o6 any country *'ose duly elected 'ead o6 !overn ent is deposed by ilitary coup or decree. But t'e U.S. !overn ent 'as lon! been 6le7ible on t'is provision. As y collea!ue 9a7 "is'er detailed at len!t', *'ile t'e U.S. o6ten does 6ollo* t'is la*, it tends to i!nore or bypass it *'en it sees 5ey national security interests at sta5e D *'ic' ay *ell apply in H!ypt."or instance, t'e Oba a ad inistration *as slo* in cuttin! aid to .onduras in #$$G a6ter a coup t'ere. And 0eor!e -. Bus' !ot a *aiver to reinstate aid to Pa5istan in #$$%, even t'ou!' t'en+leader PerveC 9us'arra6 'ad pretty clearly co e to po*er in a ilitary coup.So *'at=s t'e debate no*U On t'e one 'and, t'ere are e7perts and politicians *'o don=t t'in5 t'e United States s'ould be in t'e business o6 bac5in! a ilitary coup. 9orsi *as a terrible president, said Sen. ;o'n 9cCain 2<+AriC.3 1'eir econo y isJ is in terrible s'ape, t'an5s to t'eir policies, but t'e 6act is t'e United States s'ould not be supportin! t'is coup and it=s a tou!' call. On t'e

ot'er, t'ere are t'ose *orried t'at severin! ilitary aid to H!ypt *ill create instability. Cut o66 all aid i ediately and you *ill ta5e an econo y t'at is already 6lounderin! and probably drive it into c'aos, and t'at is not in anyone=s national security interests, said Sen. <obert 9enendeC 2D+/.;.3 At t'is point, t'e -'ite .ouse is still declinin! to call *'at 'appened in H!ypt a coup. I=ll be blunt J t'is is an incredibly co ple7 and di66icult situation, said Carney. 9any political scientists 'ave said *'at 'appened in H!ypt is clearly a coup, but t'e -'ite .ouse is tryin! to avoid cuttin! o66 aid. -'at *ould 'appen i6 *e did cut o66 ilitary aidU Probably not uc' at 6irst. 9ilitary aid to H!ypt 6or #$%& *as already disbursed bac5 in 9ay, and t'ere li5ely *ouldn=t be anot'er round o6 6undin! until ne7t sprin!. But cuttin! o66 aid *ould certainly res'ape t'e U.S.+H!ypt relations'ip J and ar5 a bi! brea5 6ro t'e past B: years.

Aid is ineffective
USAID is ineffective it %ac.s hu'an and financia% resources
$ru'in /0, "ello* o6 International A66airs 6or t'e Council on "orei!n <elations, 2A y B., Dia!nosin! USAID, April #$$G, Council on "orei!n <elations, 'ttp())***.6orei!na66airs.co )articles)B8BB&)a y+b+6ru in)dia!nosin!+usaid3 ))EA 1'e 6or er U.S. A!ency 6or International Develop ent 2USAID3 ad inistrators ;. Brian At*ood, 9. Peter 9cP'erson, and Andre* /atsios 2MArrested Develop ent,M /ove ber)Dece ber #$$@3 e7plain t'at despite t'e U.S. !overn entKs 'avin! elevated t'e status o6 develop ent to be on par *it' de6ense and diplo acy, USAID 'as been so e asculated over t'e last several decades t'at it is not an e66ective e ber o6 t'e triu virate o6 U.S. national security strate!y tools. 1'e only solution t'e aut'ors see is a *'olesale re6or o6 t'e institutions o6 6orei!n assistance, includin! a5in! USAID an independent depart ent, creatin! a /ational Security Council position 6ocused on 6orei!n assistance, and uni6yin! all sources o6 6orei!n assistance under USAID. <e6or is needed. .o*ever, as a 6or er USAID 6ield o66icer in A6!'anistan, I propose a less -as'in!ton+centric re6or strate!y. "ro -as'in!tonKs political and strate!ic perspective, it does not a5e sense to elevate t'e bureaucratic status o6 USAID *'en t'ere is so little 6ait' in t'e or!aniCation to be!in *it'. 1'e aut'ors t'e selves clai USAID is dys6unctional. Con!ress de onstrated its lac5 o6 con6idence in USAID by increasin! t'e Depart ent o6 De6enseKs allocation o6 o66icial develop ent assistance 6unds 6ro &.: percent to #%.F percent bet*een %GGG and #$$:. In t'at sa e period, USAIDKs s'are o6 o66icial develop ent assistance decreased 6ro B: percent to less t'an 8$ percent. PrioritiCin! bureaucratic re6or in -as'in!ton also does not a5e sense 6ro a national security perspective. In a *orld o6 unconventional odern *ar6are, 6ra!ile states c'aracteriCed by corruption and poverty are no* t'e ene y, and reconstruction and develop ent are t'e tools to co bat t'e . Because USAID cannot carry out t'ese tas5s e66ectively, t'e ilitary 'as been c'ar!ed *it' doin! ore o6 t'e . Pilin! anot'er andate t'at re?uires an entirely ne* s5ill set onto an overstretc'ed ilitary not only distracts it 6ro its ain tas5 o6 6i!'tin! *ars but also underutiliCes t'e or!aniCation establis'ed to address t'ese issues( USAID. 1'e United States cannot a66ord to *ait until -as'in!ton *or5s t'rou!' t'e political tan!le o6 re6or in! 6orei!n assistance to a5e USAID ore 6unctional in t'e 6ield. A6ter decades o6 scrutiny and do*nsiCin!, USAID 'as beco e an ane ic or!aniCation, *it' a 6i6t' t'e nu ber o6 sta66 it 'ad in t'e %GB$s and a 6raction o6 t'e a!ility and autono y it 'ad *'en it *as better 6unded. <e6or s'ould be!in by !ivin! USAID t'e 'u an and 6inancial resources it needs to succeed in t'e 6ield. O6 course, political *ill is re?uired to a5e t'ese c'an!es, and t'at *ill ust co e 6ro t'e presidentKs o66ice.

USAID co''its fraud 1aiti &roves that it withho%ds funds 'eant for deve%o&'ent assistance
"arion !, correspondent 6or t'e International Co ittee o6 t'e "ourt' International IC"I, 2;o'n, <eport e7poses 6raud o6 US aid to .aiti, F)#)%&, IC"I, 'ttp())***.*s*s.or!)en)articles)#$%&)$F)$#)'ait+4$#.'t l3 ))EA On ;une %@, t'e US 0overn ent Accountability O66ice released a report criticiCin! USAID=s 'andlin! o6 aid to .aiti in t'e ore t'an t'ree years since #$%$Vs catastrop'ic eart'?ua5e. O6 t'e L%.%8 billion o6 aid approved by t'e US Con!ress in t'e #$%$ Supple ental Appropriations Act, LB:% illion *as allocated to pro4ects run by USAID 2t'e United States A!ency 6or International Develop ent3. 1'e 0AO audit 6ound t'at, as o6 9arc' &%, #$%&, USAID 'ad disbursed only L#$8 illion 2&% percent3 o6 t'ese 6unds and obli!ated L@G illion ore 6or various pro4ects. In ot'er *ords, :: percent o6 t'e ori!inal LB:% illion is still sittin! in US !overn ent co66ers. A on! t'e under6unded USAID pro4ects is t'e construction o6 ne* 'o es 6or .aitian *or5ers. Out o6 %:,$$$ t'at *ere planned, only #,B8G 'ave been built. USAID bla es t'e s'ort6all, in part, on t'e .aitian !overn ent=s insistence t'at t'e ne* 'ouses 'ave 6lus' toilets, instead o6 ore traditional *aste syste s. In its response to t'e audit, USAID did not e7plain *'y it *on=t spend additional oney on 'ouses or *'y it didn=t plan 6or ade?uate sanitation in a country *'ic' 'as been *rac5ed by c'olera. As o6 t'e end o6 9ay, t'e c'olera epide ic introduced into .aiti by U/ troops 'ad 5illed @,%$$ people and sic5ened ore t'an B:$,$$$. 1'e epide ic, *'ic' 6luctuates in intensity, is li5ely to !et *orse durin! t'is su er=s rainy season. O6 t'e reduced nu ber o6 'ouses built, t'e 0AO states bluntly t'at o66icials noted t'at USAID *ould co it no 6urt'er 6unds to 'ousin! construction. 1'e United States !overn ent as a *'ole 'as disbursed 6ar less aid oney t'an it pled!ed a6ter t'e eart'?ua5e. In "ebruary, t'e Center 6or 0lobal Develop ent reported t'at t'e US 'ad disbursed L#.#: billion o6 its total pled!es o6 L&.@: billion, or less t'an B$ percent. 1'e C0D report *ent on to state t'at *it' very little data and 6e* evaluations, it is nearly i possible to trac5 *'o 'as received t'e L#.#: billion t'at t'e US !overn ent 'as disbursed. A "ebruary #$%& intervie* *it' aut'or ;onat'an >atC by /P< o66ered a partial ans*er to t'e ?uestion( a6ter t'e eart'?ua5e, t'e Penta!on [*as, *ritin! bills to t'e State Depart ent to !et rei bursed 6or 'avin! sent troops do*n to respond to t'e disaster. 1'e USAID 6unds *ere intended all alon! to bolster t'e interests o6 international capital. 1'e t'ree pro4ects

audited by t'e 0AO *ere t'e 'ousin! construction pro!ra , an industrial par5 6or !ar ent anu6acturers near t'e nort'ern city o6 Cap .aWtien, and a ne* port to s'ip !oods anu6actured t'ere. Accordin! to t'e 0AO report, 6ully && percent 2:,$$$ out o6 %:,$$$3 o6 t'e 'ouses planned by USAID *ere to be built near Cap .aWtien. 1'e re ainder *ere to be in Port+au+Prince and t'e coastal city o6 St. 9arc, 4ust to its nort'. O6 t'e #,B8G 'ouses t'at *ere actually built, nearly %,@$$ are near t'e Caracol Industrial Par5 2CIP3, *'ic' in turn is situated near Cap .aWtien. Accordin! to t'e 0AO audit( in part, USAID=s pro!ra ai ed to support t'e .aitian !overn ent=s !oal o6 decentraliCin! econo ic !ro*t' outside o6 Port+au+Prince by increasin! t'e 'ousin! stoc5 in co unities near t'e industrial par5 planned 6or nort'ern .aiti. On t'is sa e note, a ;anuary #$%% State Depart ent strate!y docu entJreleased less t'an a year a6ter t'e eart'?ua5e 5illed ore t'an &$$,$$$ peopleJstated t'at t'e c'an!in! distribution o6 .aiti=s population ay o66er a *indo* o6 opportunity to develop ne* develop ent corridors. "urt'er ore, accordin! to t'e strate!y docu ent, t'e US0 'as elevated develop ent alon!side diplo acy and de6ense as core pillars o6 A erican po*er. 1'e industrial par5 is e7pected to provide one illion s?uare eters o6 6actory space, ost to be used in t'e anu6acture o6 te7tiles, paint, and clot'in!. 1'e State Depart ent=s strate!y docu ent be oaned t'e decline in underpaid .aitian te7tile 4obs a6ter t'e %GG8 coup a!ainst ;ean+Bertrande Aristide and t'e subse?uent econo ic e bar!o o6 .aiti( in t'e late %G@$s, t'e industry e ployed an esti ated @$,$$$ urban residents, ostly *o enQ today its *or5ers nu ber only about #:,$$$. Undaunted, t'e State Depart ent *rites t'at .aiti=s pro7i ity to t'e US ar5et is co ple ented by a co petitive labor 6orce and trade pre6erences t'at a5e .aiti an attractive sourcin! location 6or !ar ents. It notes t'at, in #$$G, clot'in! e7ports accounted 6or %$ percent o6 .aiti=s 0DP. 9ost *or5ers at t'e ne* industrial par5 are pro4ected to receive t'e ini u *a!e, accordin! to t'e 0AO. It esti ates &F,$$$ per anent 4obs earnin! in a!!re!ate L%:$ illion per year, or L8,$:8 per *or5er. It is 'ard to i a!ine 'o* suc' a *a!e *ould pay even a subsidiCed rent or ort!a!e 6or a ne* 'ouse. In addition, t'ose 6ortunate enou!' to !et a 'ouse *ill be dependent on eit'er t'e CIP or t'e ne* port 6or 4obs. USAID bla es cost overruns in t'e 'o e construction pro!ra on t'e .aitian !overn ent=s re?uest 6or 6lus' toilets and bi!!er 'ouses t'an ori!inally planned. As planned, eac' 'ouse *as to be #F: s?uare 6eet, *it' .aiti as5in! 6or 8:$. Because o6 t'e drastic cut in t'e nu ber o6 'o es actually built, t'e nu ber o6 people to be 'oused *as reduced dra atically. USAID ori!inally e7pected bet*een F:,$$$ and G$,$$$ people to live in t'e ne* 'ouses, but no* esti ates t'at only bet*een %&,#$$ and %:,G$$ *ill 6it into t'ose actually built. Usin! t'e lo* end o6 t'is ran!e, %&,#$$ people in #,B8G 'ouses results in an avera!e o6 6ive per 'ouse. A #:$ s?uare 6oot 'ouse *ould !ive eac' o6 t'ese people a space e?ual to 6ive by ten 6eet. 1'e electric in6rastructure built so 6ar *it' USAID 6unds is also inade?uate. 0AO 6ound t'at, as o6 &)&%)%&, t'e %$+ e!a*att po*er plant 6or t'e industrial par5 *as @G percent co plete, *'ile planned in6rastructure 6or residential distribution *as only %$ percent co plete. It also 6ound t'at t'e US !overn ent is reluctant to s'are t'e !ar ent industry=s pro6its *it' t'e .aitian !overn ent. In response to a .aitian proposal to c'ar!e a L#B$ 6ee on eac' container co in! into t'e countryJ*it' t'e proceeds to be used 6or social pro!ra sJUSAID=s port 6easibility study concluded t'at suc' a !overn ent surc'ar!e *ould a5e t'e pro4ect 6inancially in6easible. In its audit, 0AO ta5es USAID to tas5 6or arro!ance and inco petence, notin! t'e lateness o6 its con!ressionally+ andated reports and t'e 6act t'at o6 all USAID 6unds spent so 6ar, t'e cost cate!ory *it' t'e 'i!'est disburse ent rate is Operatin! and Ot'er H7pensesQ t'at is, over'ead. O6 t'e industrial center=s planned port, *'ic' 'as not !otten past t'e sta!e o6 a "easibility Study, 0AO reports t'at accordin! to USAID o66icials, USAID 'as not constructed a port any*'ere in t'e *orld since t'e %GF$s, and USAID does not 'ave a port en!ineer or port pro4ect ana!er a on! its direct+'ire sta66. /o e7planation is o66ered 6or *'y t'e pro4ect *asn=t assi!ned to an a!ency *it' ore e7perience.

USAID %ac.s &ro&er oversight and wastes 'i%%ions

2re&& !, 'o eland security, transportation, and ener!y e7pert *'o be!an 'er career as an active duty Coast 0uard o66icer in %GG@. A6ter Septe ber %%t', 9s. >repp *as part o6 t'e tea t'at created t'e 1ransportation Security Ad inistration and t'e U.S. Depart ent o6 .o eland Security. 2Denise, USAID + -aste and 9is ana!e ent H7posed, F)@)%&, 1'e 9ariti e H7ecutive, 'ttp())***. ariti e+e7ecutive.co )article)USAID++-aste+and+ 9is ana!e ent+H7posed+#$%&+$F+$@)3))EA 1'e U.S. A!ency 6or International Develop ent does not 'ave t'e oversi!'t capability to i ple ent t'e Ad inistrationKs proposed c'an!es to t'e current 6ood aid pro!ra . 1'e a!ency 'as been repeatedly criticiCed by nu erous inspector !enerals 6or is ana!e ent. 1'is is ana!e ent 'as cost t'e A erican ta7payer illions o6 dollars. 1'e Ad inistration s'ould 6ocus its attention o6 6i7in! e7istin! proble s instead o6 c'an!in! t'e current international 6ood aid distribution structure and !ivin! USAID ore oney to lose. Durin! a visit to a Da5ar, Sene!al 6ood security e7po last ont', President Oba a told attendees t'at U.S. ta7payer oney used 6or 6ood aid *as not bein! *astedQ rat'er, it *as bein! used to 'elp 6eed 6a ilies. .e t'en t'an5ed USAID Ad inistrator <a4 S'a' 6or all t'e !reat *or5 'e 'as done. 1'e PresidentKs co ents ca e a day a6ter t'e Special Inspector 0eneral 6or A6!'anistan <econstruction blasted USAID 6or ine66ective pro!ra oversi!'t. Special Inspector 0eneral ;o'n Sop5o initiated an investi!ation into t'e USAID

Sout'ern <e!ional A!ricultural Develop ent pro!ra in #$%# a6ter 'e received nu erous co plaints. In Au!ust #$%%, t'e a!ency a*arded a LF$ illion cooperative a!ree ent to a non+pro6it or!aniCation to i ple ent t'e a!ricultural pro!ra . 1'e Special Inspector 6ound several instances o6 *aste and is ana!e ent. As a result o6 t'is poor oversi!'t, U.S. ta7payer dollars *ere spent on unnecessary costs and e?uip ent t'at ay 'ave been unused or stolen.1'e 0overn ent Accountability O66ice 'as also e7pressed concerns about USAIDKs ana!e ent s5ills. 1'e a!ency *as tas5ed in #$%$ *it' providin! tec'nical assistance and trainin! to A6!'an civil servants. In a #$%% report, 0AO deter ined t'at success o6 t'e pro!ra couldnKt be deter ined because o6 *ea5nesses in USAID=s per6or ance ana!e ent 6ra e*or5s, suc' as lac5 o6 per6or ance tar!ets and data 2t'at3 prevent reliable assess ents o6 its results. 0AO reco ended t'at USAID clean up its ana!e ent processes. On ;une F, #$%&, t'e USAID O66ice o6 Inspector 0eneral released a report re!ardin! t'e a!encyKs partner+country and local or!aniCation assess ents pro!ra . 1'e OI0 6ound t'at t'e a!ency did not su66iciently establis' oversi!'t roles 6or t'e assess ent process. In addition, t'e OI0 criticiCed t'e a!encyKs C'ie6 "inancial O66icerKs <is5 9ana!e ent 1ea 6or little ?uality control and reco ended t'at t'e C"O beco e ore involved in t'e pro!ra . USAID disa!reed *it' t'is reco endation statin! t'at direct oversi!'t s'ould co e individual in+country issions rat'er t'an t'e C"O in -as'in!ton, DC. An a!encyKs C"O is a very i portant person. 1'is individual is responsible 6or ensurin! t'at a!ency 6unds are properly e7pended. In t'e case o6 USAID, t'e Associated Press reported earlier t'is year t'at t'e a!encyKs 6or er C"O and 0eneral Counsel are under investi!ation by its I0 and t'e Depart ent o6 ;ustice. 1'e ;anuary #8t' article also states t'at a USAID I0 e o revealed evidence t'at t'e USAID Deputy Ad inistrator ay 'ave inter6ered *it' t'e investi!ation. Be6ore ta5in! on any additional responsibility, USAID Ad inistrator S'a' s'ould clean up t'e internal *or5in!s o6 'is a!ency. 1'is process s'ould include i provin! oversi!'t over e7istin! pro!ra s suc' as t'ose in A6!'anistan and ot'er *ar torn areas o6 t'e *orld. Cleanin! up t'ese pro!ra s *ill ini iCe *aste and 6raud. 1'ese c'an!es *ill also a7i iCe ta7payer resources D so et'in!, no one *ill disa!ree *it'.

USAID suffers ridicu%ous de%ays

Broo.%and )3 Broo5land is a Deve7 !lobal develop ent reporter based in -as'in!ton, DC. S'e 'as *or5ed as a 'u anitarian reporter 6or t'e United /ations and as an investi!ative 4ournalist 6or /e*s#%. ;enni6er 'olds a bac'elorKs in 6orei!n service 6ro 0eor!eto*n University and a asterKs in 4ournalis 6ro Colu bia University and in international la* and diplo acy 6ro t'e "letc'er Sc'ool. S'e also served 6or 6our years as an Air "orce o66ice. 2;enni6er, In USAID procure ent, a !a e o6 stop+and+!o, @)#G)%#, Deve7, 'ttps())***.deve7.co )en)ne*s)in+usaid+procure ent+a+!a e+o6+ stop+and+!o)FG$#&3 ))EA -'en Betsy Bassan created t'e Pana!ora 0roup a year and a 'al6 a!o, s'e envisioned 'er s all business playin! an active role in addressin! 'ealt' and develop ent proble s *orld*ide. S'e 'ad all t'e necessary e7perience, as vice president at a a4or develop ent co pany, pro4ect director at a lar!e non!overn ental or!aniCation and president o6 a leadin! pro6essional association 6or aid practitioners. In t'e previous ei!'t years, Bassan 'ad *on 6ive lar!e !lobal 'ealt' contracts *it' t'e U.S. !overn ent and ore t'an a doCen ot'er a*ards 6or t'e co pany s'e *or5ed 6or. /o* s'e *as stri5in! out on 'er o*n.And s'e 'ad not'in! to do. /one o6 t'e si7 contracts s'e bid on last sprin! 'ave been a*arded.As a ne* business t'at=s really, really 'ard, Bassan said. And as a s all business, it=s a 5iller. Delays in a*ardin! contracts and !rants don=t 4ust cause 'eadac'es 6or s all /0Os and consultancies, but also lar!e i ple entin! partners. And it is 'avin! a real i pact on develop ent, bot' at 'ead?uarters and in t'e 6ield, as aid !roups ris5 losin! oney, talent and even credibility, and needed pro!ra s !et canceled or never !et o66 t'e !round. "or years, t'e U.S. A!ency 6or International Develop ent 'as been 5no*n 6or its particularly cu berso e procure ent process and 6re?uent delays in a*ardin! 6ield *or5. But over t'e past 6e* years, delays 'ave beco e *orse, so e i ple enters say. In *ide+ ran!in! intervie*s *it' e7ecutives o6 s all and lar!e nonpro6it and 6or+pro6it i ple entin! partners o6 USAID J several o6 *'o spo5e to Deve7 on t'e condition o6 anony ity out o6 an7iety 6or t'eir on!oin! business *it' t'e U.S. !overn ent J concerns *ere raised t'at USAID "or*ard, t'e a!ency=s a bitious re6or pro4ect eant, a on! ot'er t'in!s, to strea line procure ent, i!'t actually be e7acerbatin! t'e proble , at least in t'e s'ort run. USAID o66icials *e spo5e *it', includin! Deputy Ad inistrator Don Steinber!, ac5no*led!ed procure ent delays but insisted t'at USAID "or*ard is not to bla e. As Deve7 'as previously reported, any i ple entin! partners ?uestion USAID "or*ard=s controversial initiative to provide ore 6undin! directly t'rou!' local co panies and /0Os J a 6act t'at ay cloud so e o6 t'e debate around procure ent delays. -'atever t'e reason, USAID no* ta5es ore t'an %.: years to a*ard its lar!est and ost co ple7 pro!ra s via *'at is called an inde6inite ?uantity contract. Its !oal is to reduce procure ent action lead ti e to #B@ days 6or overseas contracts, a!ree ents and D.C.+based ISCs, and to &#F days 6or ore co ple7 ISCs. By co parison, it ta5es t'e Australian A!ency 6or International Develop ent an avera!e o6 %BB days to a*ard a tender valued above :$$,$$$ Australian dollars 2about L:#B,$$$3 and %#$ days 6or a co petitive !rant, accordin! to an AusAID

spo5esperson. 1'e ;apan International Cooperation A!ency ta5es F: days to a*ard lar!e+scale pro4ects and 8: 6or s all ones. 1'e U.>. Depart ent 6or International Develop ent 'as pled!ed to a*ard contracts *it'in %#$ days e7cept in t'e ost co ple7 cases.Procure ent speed varies by country and pro4ect, o6 course, and USAID 'as a*arded so e contracts ?uite s*i6tly. But as 6iscal #$%# dra*s to a close and t'e a!ency rus'es out 'u!e a ounts o6 oney at t'e last inute, ?uestions 'ave !ro*n loud a!ain about 6undin! delays and *'et'er USAID is able to ensure an orderly rollout o6 aid pro4ects.-'at causes procure ent delaysU Hvery bilateral donor ust deal *it' t'e cyclical !a e o6 *aitin! 6or 6undin! to be allocated and t'en tryin! to spend it all responsibly and in a ti ely 6as'ion. Procure ent delays t'rou!'out t'e year o6ten !ive *ay to an outpourin! o6 oney at t'e end o6 a 6iscal cycle, as !overn ent o66icials try to avoid !ivin! t'e i pression t'at t'ey i!'t as *ell 'ave ade due *it' a s aller bud!et. 1'at=s especially true in -as'in!ton. 1'e U.S. Con!ress 'as beco e so partisan t'at la* a5ers stru!!le to pass annual appropriations bills, instead optin! 6or s'ort+ter e7tensions o6 t'e e7istin! bud!et. 1'e bud!et is supposed to be passed by Sept. &$, t'e last day o6 t'e 6iscal year. But t'at 'asn=t 'appened in a *'ile, and 6or 6iscal #$%#, Con!ress did not pass a bud!et until id+Dece ber, a6ter passin! 6ive te porary bud!et e7tensions. 1'e delay !ave USAID less ti e to develop ac?uisitions strate!ies, solicit bids and proposals, evaluate responses and a*ard 6undin!, accordin! to Alan C'vot5in, e7ecutive vice president and counsel at t'e Pro6essional Services Council, *'ic' advocates 6or U.S. co panies pursuin! !lobal develop ent business. A6ter Con!ress appropriates oney, it 6alls upon t'e -'ite .ouse O66ice o6 9ana!e ent and Bud!et to a5e t'e 6unds available J a second potential 'oldup. And t'en t'ere=s USAID.1'e a!ency is still understa66ed, ost observers say J even a6ter 'irin! ore t'an %$: ne* contractin! o66icers in t'e past 6e* years. And *it' several lar!e ISCs co in! to an end in t'e past year, USAID procure ent o66icers 'ave been under a lot o6 pressure to 6ind *ays to spend 6orei!n aid dollars. Addin! to t'at pressure is t'e ne* trainin! t'at=s needed to !et sta66 up+to+date on procure ent re6or and ne* reportin! re?uire ents 6or t'e a!ency=s partners in t'e 6ield. 1'e learnin! curve is particularly steep 6or USAID=s youn! recruits J B$ percent o6 6ield sta66, 6or instance, 'as been on t'e 4ob 6or 6ive years or less, accordin! to Steinber! J even t'ou!' t'e a!ency tries to atc' t'e *it' ore seasoned collea!ues. All o6 t'e , t'ou!', 'ave to adapt to re6or s t'at are part o6 USAID "or*ard, includin! t'e need to update ac?uisition and assistance plans every ?uarter and, startin! in October, to catalo! online so e o6 t'e 8$ steps t'at are part o6 a standard procure ent. Alt'ou!' USAID o66icials deny t'at t'ese re6or s 'ave caused delays J t'ey are eant to strea line procure ent and reduce lead ti e, a6ter all J i ple entin! partners are not so sure. I t'in5 t'ey are in a very di66icult situation, Plan USA President 1essie San 9artin said about USAID. 1'ey are as5ed to redesi!n t'e procure ent rules and processes and not slo* do*n procure ent actions. It=s 'ard to do bot'. 1'e end+o6+t'e+year rus'4 "undin! appropriated by t'e le!islature usually ust be spent by a set date, typically t'e end o6 t'e 6iscal year, *'ic' 6or t'e U.S. !overn ent is Sept. &$. As a result, USAID and ot'er a!encies tend to rus' out procure ents in t'e last ?uarter o6 t'e 6iscal year, a5in! Au!ust t'e busiest ont' 6or proposal *riters and recruiters in -as'in!ton. But USAID 'as ot'er options 6or 'andlin! le6tover 6unds. 1'e a!ency ay e7tend or e7pand certain e7istin! a!ree ents, 6or instance J a practice t'at 'appens every year, accordin! to one procure ent e7pert *it' nearly t'ree decades o6 e7perience. -'o *ants to !o bac5 into t'e !eneral 5itty *'en you could du p it in a contract and 'old itU s'e said. I=ve 'ad L%% illion du ped into a contract be6ore, *it' no *or5 plan and no bud!et, 4ust to 'old it. 1'e a!ency i!'t also *aive t'e co petitive biddin! process, a ove t'at re?uires 4usti6ication. So e recent *aivers 'ave been 6or relatively s all a ounts o6 oney, but ot'ers are si!ni6icant, and USAID appears to 'ave considerable lee*ay J re!ulation allo*s t'e a!ency to a*ard *it'out co petition *'en it is critical to t'e ob4ectives o6 t'e 6orei!n assistance pro!ra , *'en an or!aniCation 'as uni?ue capabilities or relations'ips *it'in a partner country, or *'en it=s 6or a s all !rant t'at *on=t last ore t'an one year. It can also li it co petition to a selected !roup o6 applicants *'en it is necessary 6or [t'e, sa5e o6 e66iciency. H7tensions to e7istin! a!ree ents can be a*arded *it'out 4usti6ication. "or critical priority countries li5e Pa5istan, Ira? and Sudan, t'is eans up to L#$ illion can be a*arded *it'out co petition. 1'ere see s to be little debate in -as'in!ton aid circles about suc' 6undin! e7tensions J unsurprisin!, per'aps, since t'e oney tends to !o to e7perienced USAID i ple enters inside t'e belt*ay. And alt'ou!' a case can be ade 6or e7tendin! success6ul pro4ects, t'e a!ency ay iss out on innovative partners'ips beyond t'e usual suspects.Anot'er *ay 6or USAID to a*ard 6undin! is t'rou!' cooperative a!ree ents, *'ic' can=t be protested and, so e i ple enters ar!ue, are easier to *rite, 6aster to a*ard and re?uire less onitorin!. USAID o66icials deny relyin! increasin!ly on cooperative a!ree ents. 1'e a!ency 'ad no bias one *ay or t'e ot'er, Steinber! said. USAID decides *'ic' ve'icle to use based on t'e underlyin! intent, Steinber! insisted( A contract is supposed to directly bene6it t'e U.S. !overn ent, *'ile an a!ree ent or !rant s'ould trans6er value to t'e recipient. Since cooperative a!ree ents pro'ibit t'e e7c'an!e o6 6ees, 6or+pro6it co panies tend not to bid and t'ese pro4ects tend to !o to nonpro6it or!aniCations. But several 6or+pro6it i ple entin! partners *e spo5e *it' ar!ue t'at so e cooperative a!ree ents t'e a!ency 'as solicited *ould 'ave been better suited as contracts. USAID a*arded a L8$$ illion A6!'anistan in6rastructure pro4ect *it' a s all develop ent co ponent as a cooperative a!ree ent to nonpro6it International <elie6 and Develop ent in #$$F, 6or e7a ple. 1'e debate bet*een 6or+pro6it and nonpro6it USAID i ple entin! partners stretc'es bac5 decades, and t'e pendulu 'as s*un! bac5 and 6ort' *it' successive

ad inistrations. But so e procure ent e7perts *e intervie*ed insisted t'at t'e reliance on cooperative a!ree ents is on t'e rise because o6 t'eir relatively less onerous a*ard process. 1'e nu ber o6 'ealt' sector <"Ps *as about t'e sa e as t'e nu ber o6 <"As in #$$G, and t'e a ount spent on !rants and cooperative a!ree ents *as *it'in : illion o6 t'e a ount spent on contracts. 1'ose nu bers 'ave since diver!ed s'arply. East year, L#.FF billion *ort' o6 *or5 *as a*arded in 'ealt' under assistance !rants, and 4ust L#%B illion under ac?uisition contracts, accordin! to Bassan. A cooperative a!ree ent !ives uc', uc', uc' less *or5 in ter s o6 t'e actual approval actions, so t'at is a very attractive ec'anis , Bassan said. 1'e e66ect on i ple enters( -'atever USAID "or*ard is to bla e or not, t'e conse?uences o6 t'e a!ency=s current procure ent slu!!is'ness are not insi!ni6icant. Delays a66ect /0Os and businesses *'ic' ust respond to a sle* o6 solicitations at once, 6orced to esc'e* so e opportunities or put in a less+t'an+best e66ort on several at a ti e. In turn, USAID su66ers 6ro less co petition, or lo*er+?uality proposals. It also 'as less ti e itsel6 to do an e66ective ?uality revie* and selection process, especially i6 t'e 6iscal year deadline to a*ard 6unds is loo in!. -'en USAID publicly 6orecasts a bid, potential partners o6ten ta5e t'e ti e and oney to travel to t'e country, conduct intervie*s and connect *it' local or!aniCations, !at'er a tea o6 e7perts and recruit 5ey personnel. 1'at can cost ore t'an LB$,$$$, accordin! to one lon!ti e develop ent practitioner 6a iliar *it' private+sector develop ent consultancies. I6 solicitations t'at *ere based on e7pirin! 6unds are not a*arded by t'e end o6 t'e 6iscal year, t'ey *ill be canceled J 'o 'ar , no 6oul, one i!'t say. But because it isn=t ade public *'ic' a!ency 6unds are due to e7pire and *'ic' can carry over into t'e ne7t year, bidders ta5e all t'ose pains to prepare 6or pro4ects t'ey=ll never i ple ent. -'en an a*ard ta5es uc' lon!er t'an e7pected, researc' !ro*s outdated, conditions in t'e 6ield c'an!e, and sta66 is lured a*ay by ore concrete o66ers. A6ter repeated delays, consultants and local sta66 i!'t beco e 'esitant to *or5 *it' partners *'o see to strin! t'e alon!, pre6errin! ore reliable e ploy ent. One e7pert recently de anded to be put on a develop ent contractor=s payroll 6or one year as a precondition to si!nin! on 6or a pro4ect, a proposal recruiter told Deve7. .e *as sic5 o6 bein! 'ired 6or pro4ects t'at never !ot o66 t'e !round and turnin! do*n ot'er *or5 in t'e eanti e. 1'is story illustrates t'e c'allen!es aid !roups 6ace in ti es o6 6undin! delays. Or!aniCations lose credibility *'en t'e pro!ra s t'ey prepare 6or don=t co e to 6ruition. O6ten, t'ey ust *atc' talented local sta66 leave in searc' o6 ore reliable opportunities J especially pain6ul i6 t'e or!aniCation 'ad already invested in trainin!. -e 'ave to scra ble around to 6ind cas' to pass to our sub+or!aniCations so t'ey can 5eep t'eir doors open because t'ey don=t 'ave t'at 5ind o6 oney available, said one business develop ent e7pert. 1'e local or!aniCations t'at are !ettin! direct 6undin! do not 'ave t'e resources to *ait t'ese 5inds o6 t'in!s out. Ear!er nonpro6its t'at 'ave alternative 6undin! sources so eti es ta5e t'e ris5 o6 !oin! a'ead *it' *or5 on t'e assu ption t'at USAID=s oney *ill co e t'rou!'. But several aid practitioners told Deve7 t'at it=s not un'eard o6 6or pro4ects 6unded solely by USAID to be delayed so lon! t'at no one can cover t'e !ap bet*een a*ards, and *or5 'as to co e to an abrupt stop. 1'e 6uture o6 USAID procure ent( Despite its best intentions to speed t'in!s up and strea line t'e procure ent process, i prove ent ay not be in t'e i ediate 6orecast. Actually, it could !et *orse, accordin! to C'vot5in o6 PSC. 1'e ne7t 6iscal year be!ins Oct. % and Con!ress 'as yet to pass appropriations 6or 6orei!n a66airs, includin! USAID and t'e 9illenniu C'allen!e Corp. USAID *ill li5ely be under a continuin! resolution 6or at least a 6e* ont's, allo*ed to spend oney at t'e sa e rate as 6iscal #$%#, but not in a !ood position to a5e lon!+ter 6undin! decisions. 1'e results o6 t'is year=s presidential election could prove si!ni6icant. I6 9itt <o ney is elected, analysts e7pect t'e ne* president to try to cut 6orei!n aid and res'ape t'e *ay USAID does business. "inally, t'ere is t'e possibility o6 andatory across+t'e+board 6ederal !overn ent spendin! cuts later t'is year J t'e so called se?uestration J *'ic' *as enacted as part o6 last year=s debt ceilin! co pro ise. 1'is se?uestration *ould li5ely see USAID=s bud!et slas'ed by around @.: percent, accordin! to InterAction President Sa uel -ort'in!ton. 1'e O66ice o6 Bud!et 9ana!e ent *ill report to Con!ress by Sept. @ on t'e actual a ount due to be cut. Un6ortunately, t'e people *'o a5e develop ent 'appen *on=t 5no* t'e situation until it=s upon t'e , i6 aut'ors *'o *rote a *'ite paper 6or t'e A erican Bar Association=s "ederal Procure ent Institute are correct. 1'ey *rote t'at, Individual contractin! o66icers and t'eir custo ers, t'e pro!ra ana!ers, *ill !enerally be a on! t'e last to 5no* *'at 6unds *ill be available 6or *'at pro!ra s.

Aid is ineffective and e#&eriences structura% &rogra's

5arve%in. and 6ahir ), A bassador -illia ;. 0arvelin5 is a senior adviser *it' t'e Pro4ect on U.S. Eeaders'ip in Develop ent at t'e 1'e Center 6or Strate!ic and International Studies 2CSIS3 in -as'in!ton, D.C. "ar'a 1a'ir is pro!ra coordinator and researc' associate *it' t'e CSIS A6rica Pro!ra .2 -illia and "ar'a, 0ettin! t'e <i!'t <esponse to "ood S'orta!es in t'e Sa'el, F)%B)%#, 'ttp())***.'un!er+undernutrition.or!)blo!)usaid)3))EA A blea5 narrative o6 %B illion people on t'e brin5 o6 starvation in -est A6rica=s Sa'el re!ion 'as captured 'eadlines. But t'e bre*in! 6ood crisis 'as been overstated, and t'e 'eadlines 6ail to identi6y t'e core causes o6 6ood insecurity and alnutrition in t'e re!ion. 1'e international co unity 'as been and see s a!ain to be content to provide assive a ounts o6 6ood aid and deal *it' t'e sy pto s rat'er t'an address t'e underlyin! cause o6 t'is crisis( lac5 o6 co unity resilience. 1'e real crisis in t'e Sa'el is one o6 persistently 'i!' rates o6 acute alnutrition, an issue t'at 'as a66ected t'e

re!ion=s residents 6or decades and cannot be addressed *it' e er!ency 6ood assistance alone. It=s true t'at t'e picture is not a !ood one( poor 'arvest, 'i!'er 6ood prices, and alnutrition are in 6act evident in certain areas. -'ile all e7perts a!ree t'at so e tar!eted 6ood assistance is re?uired, 6ood aid s'ould be ini iCed, realiCin! t'at it plays only a palliative role and could disrupt ar5ets. "ood aid 6ails to address t'e 6unda ental proble s. A!ricultural production in t'e Sa'el is on t'e increase and ar5ets are 6unctionin!. -'ile inade?uate rain6all distribution did delay 'arvests and create so e production de6icits, t'e "a ine Harly -arnin! Syste s /et*or5 2"H-S /H13 esti ates t'at t'is year=s production *ill be su66icient to eet t'e re!ion=s 6ood re?uire ents. R 1'e ore pressin! issue is a resilience de6icit, t'e sa e issue t'at loo ed durin! t'e #$$: crisis *'en t'e international co unity 6ocused on 6ood distribution. 1'at decision disrupted local ar5ets and 6ailed to prevent *'at *e=re seein! today. 1'e causes o6 t'is resilience de6icit ran!e 6ro atters o6 cultural practice to lar!er develop ent c'allen!es, includin! lac5 o6 access to sa6e *ater, inade?uate 'ealt' care and nutrition, and poor sanitation. C'ronic alnutrition in c'ildren is re!ion *ide, a66ectin! an esti ated 8$ percent o6 t'ose under 6ive years o6 a!e. In 6act, t'e Sa'el 'as so e o6 t'e 'i!'est c'ild ortality rates and t'e 'i!'est c'ild acute alnutrition rates in t'e *orld. Placin! t'e current situation in t'is conte7t de onstrates t'at it is not an aberration but a lar!er develop ent c'allen!e.R 1'e situation in t'e Sa'el is about c'ronic 6ood insecurity t'at re?uires a 6ocus on lon!+ ter 6ood production and alnutrition rates. 1'e classi6ication o6 an e er!ency, t'ere6ore, loo5s very di66erent in t'e Sa'el t'an in ot'er parts o6 t'e *orld.R 1'e source o6 t'e overco pensation in t'e Sa'el is clear. 1'e international co unity *as severely criticiCed last year 6or *'at *ere dee ed inade?uate e66orts to co bat t'e drou!'t)6a ine in t'e .orn o6 A6rica, particularly 6or its delayed response. But t'e Sa'el is not So alia. And t'e Sa'el is not 6acin! a 6a ine. <espondin! late to one crisis and respondin! inappropriately to t'e ne7t su!!ests t'at so et'in! is bro5en. So et'in! is *ron! *it' t'e international response net*or5s t'at 'ave been desi!ned to 6acilitate appropriate responses to 6ood e er!encies. 1'e international co unity 'esitated *'en "H-S *arned in #$%$ o6 a 6a ine in So alia, and tens o6 t'ousands su66ered. 1oday, despite cautions by "H-S and ot'ers, donors and /0Os are a!ain considerin! tactics t'at *ill not resolve t'e proble . 1'e c'allen!es o6 t'e Sa'el su!!est t'e ti e is ri!'t 6or a ree7a ination o6 'o* t'e international co unity a5es assistance decisions about t'e *orld=s 6ood crises.

,nergy Aid Increasing 7Aff8

,nergy aid trades off with nationa% security energy aid wi%% increase by 94! 'i%%ion
*ogers ), <HP<HSH/1A1IXH 9I>H <O0H<S 2<+AE3<ep, 29i5e, .earin! o6 t'e State, "orei!n Operations and <elated Pro!ra s Subco ittee o6 t'e .ouse Appropriations Co ittee Sub4ect( M"A #$%& Bud!et 6or t'e State Depart entM C'aired by( <epresentative >ay 0ran!er 2<+1I3 -itness( Secretary o6 State .illary Clinton Eocation( #&:G <ayburn .ouse O66ice Buildin!, -as'in!ton, D.C. 1i e( %$($$ a. . HS1 Date( 1uesday, "ebruary #G, #$%#, "ederal /e*s Service, 'ttp())***.le7isne7is.co .pro7y.lib.u ic'.edu)'ottopics)lnacade ic) ))EA
<HP. <O0H<S( "ro t'e instability in t'e 9iddle Hast to t'e econo ic crisis in Hurope, to t'e evolvin! c'allen!es in t'e Asia+ Paci6ic re!ion, t'ereKs no ?uestion t'at youKre servin! durin! a very critical period o6 'istory. -orld events o6ten re ind us t'at our country, our 6reedo , our *ay o6 li6e re ain at constant ris5. In recent years *eKve also seen a di66erent 5ind o6 t'reat to our independence, e er!in! in our escalatin! 6iscal crisis 'ere at 'o e. 1'is co ittee 'as been 6ront and center and been !iven t'e c'ore o6 addressin! t'e very real security t'reat, as t'e 6or er c'air an o6 t'e ;oint C'ie6s described it, posed by out+o6+control -as'in!ton spendin! and trillion+dollar de6icits no* 6our years in t'e runnin!. East year ++ last calendar year ++ t'is co ittee *or5ed to restore transparency, austerity, tou!' oversi!'t to t'e appropriations process and *e succeeded in reducin! discretionary spendin! by so e LG: billion co pared to 6iscal year K%$. 1'atKs not 'appened since -orld -ar II, and IK very proud o6 our co itteeKs *or5 in t'at respect. A tou!' c'ore. -'ile I s'are your interest in supportin! 5ey national security priorities, I a concerned t'at t'e State and 6orei!n operations re?uest o6 :8.F billion 2dollars3 is an increase o6 nearly #.B percent above 6iscal K%#. Hven *'ile t'e proposed Depart ent o6 De6ense bud!et is bein! reduced by t'e ad inistration, State and USAID continues to rise in their request. In addition to t'e any valid bud!et concerns e7pressed by C'air*o an 0ran!er and /ita Eo*ey, I *ould also li5e to add our s'ared concern about our countryKs ener!y security to t'at list. Hven t'ou!' t'e State Depart ent 'as said, ?uote, MHner!y security is vital to U.S. national security,M ?uote, M1'e depart ent continues to rattle o66 e7cuses 6or delayin! t'e >eystone H7cel pipeline.M -'ile t'e State Depart ent is pus'in! bac5 on a viable ener!y option t'at *ould also create 4obs in t'e U.S., t'e bud!et proposes to bu p up 6undin! by L:.8 illion 6or t'e ne*ly created Bureau o6 Hner!y <esources , and to increase aid to ot'er countries by %8.& illion 2dollars3 to 'elp t'e address t'eir ener!y c'allen!es. I 6ind t'at a bit ironic in vie* o6 t'e decision on t'e pipeline 'ere.

A6 -,-$A*
No trade:off USAID budget doesn;t inc%ude -,-$A*

((5A
[C'ica!o Council on 0lobal A66airs, 9ay #$%%, Stren!t'enin! USAID( A 1i eline o6 <ecent Hvents 'ttp())***.t'ec'ica!ocouncil.or!)User"iles)"ile)0lobalA!Develop ent)<eport)0ADIYOccasionalYPaperYStren!t'enin! YUSAID.pd6,
9ay &%, #$%% + A!ricultural develop ent 'as 'istorically been a si!ni6icant co ponent o6 U.S. 6orei!n aid. -'ile in t'e %G@$s #: percent o6 U.S. 6orei!n aid *ent to a!riculture, t'at nu ber dropped to si7 percent by %GG$ and *as a ea!er one percent by #$$@.% As U.S. support 6or a!ricultural develop ent 'as declined, so 'as t'e capacity o6 USAID to deliver a!ricultural assistance. In %GGF, USAID ceased to be an independent a!ency *it' t'e Ad inistrator reportin! to t'e President and *as 6olded into t'e State Depart ent.# In #$$B, t'e Secretary o6 State created a "orei!n Assistance Bureau *it'in t'e State Depart ent 2State)"3 to ore closely ali!n t'e USAID bud!et and activities *it' t'e State Depart ent=s diplo acy ob4ectives, endin! USAID=s bud!et autono y. -'ile President 0.-. Bus'

increased t'e 6orei!n aid bud!et si!ni6icantly, t'e ai s o6 USAID=s develop ent *or5 *ere anc'ored in t'e President=s /ational Security Strate!y. "urt'er ore, President Bus'=s si!nature develop ent initiatives, suc' as President=s H er!ency Plan 6or AIDS <elie6 2PHP"A<3 and t'e 9illenniu C'allen!e Corporation 29CC3, *ere placed outside o6 USAID.

-,-$A* has &ushed out 'ore i'&ortant hea%th &rogra's and is the root cause of status quo overstretch

O;1an%on 0
[Barbara O=.anlon, .e*lett "oundation, April #$$G, USAID=s "undin! Decisions on <eproductive .ealt' and "a ily Plannin! 'ttp())***.'e*lett.or!)uploads)6iles)USAIDY"P<.Y"undin!YDecisionsY+YO.anlonYAprilY#$$G.pd6, 9any USAID sta66 intervie*ed 6or t'is paper described t'e ne!ative i pact o6 PHP"A< on its ot'er 'ealt' pro!ra s . As one USAID sta66 person intervie*ed stated, PHP"A< 'as 'ad a tsuna i e66ect across t'e A!ency 2direct co unication3. "irst, PHP"A< 6unds 'ave over*'el ed ot'er 'ealt' pro!ra s li5e <.)"P, c'ild survival and aternal 'eat'. 1'e !reat su s o6 PHP"A< 6unds 'ave 6urt'er s5e*ed USAID=s and 9issions= bud!ets, creatin! dra atic 6undin! i balances 2see "i!ure :3. Second, t'e ana!e ent and reportin! re?uire ents 6or PHP"A< , 6or e7a ple t'e annual Country Operatin! Plans, 'ave beco e t'e do inate 6ocus o6 USAID sta66 bot' at 'ead?uarters and in t'e 6ield. 9oreover, USAID sta66 ust spend t'eir ti e on PHP"A< pro!ra ana!e ent to t'e detri ent o6 t'eir ot'er pro!ra s.

*efor' $ai%s
*efor' won;t go far enough fast enough
$ru'in 0 <A'y $ru'in3 Internationa% Affairs $e%%ow3 (ounci% on $oreign *e%ations3 =Diagnosing USAID> "arch?A&ri% )//03 htt&:??www4foreignaffairs4co'?artic%es?@9@@!?a'y:b:fru'in?diagnosing:usaidA
1'e 6or er U.S. A!ency 6or International Develop ent 2USAID3 ad inistrators ;. Brian At*ood, 9. Peter 9cP'erson, and Andre* /atsios 2MArrested Develop ent,M /ove ber)Dece ber #$$@3 e7plain t'at despite t'e U.S. !overn entKs 'avin! elevated t'e status o6 develop ent to be on par *it'

de6ense and diplo acy, USAID 'as been so e asculated over t'e last several decades t'at it is not an e66ective e ber o6 t'e triu virate o6 U.S. national security strate!y tools. 1'e only solution t'e aut'ors see is a *'olesale re6or o6 t'e institutions o6 6orei!n assistance, includin! a5in! USAID an independent depart ent, creatin! a /ational Security Council position 6ocused on 6orei!n assistance, and uni6yin! all sources o6 6orei!n assistance under USAID . <e6or is needed. .o*ever, as a 6or er USAID 6ield o66icer in A6!'anistan, I propose a less -as'in!ton+centric re6or strate!y. "ro -as'in!tonKs political and strate!ic perspective, it does not a5e sense to elevate t'e bureaucratic status o6 USAID *'en t'ere is so little 6ait' in t'e or!aniCation to be!in *it'. 1'e aut'ors t'e selves clai USAID is dys6unctional. Con!ress de onstrated its lac5 o6 con6idence in USAID by increasin! t'e Depart ent o6 De6enseKs allocation o6 o66icial develop ent assistance 6unds 6ro &.: percent to #%.F percent bet*een
%GGG and #$$:. In t'at sa e period, USAIDKs s'are o6 o66icial develop ent assistance decreased 6ro B: percent to less t'an 8$ percent. PrioritiCin! bureaucratic re6or in -as'in!ton also does not a5e sense 6ro a national security perspective. In a *orld o6 unconventional odern *ar6are, 6ra!ile states c'aracteriCed by corruption and poverty are no* t'e ene y, and reconstruction and develop ent are t'e tools to co bat t'e . Because USAID cannot carry out t'ese tas5s e66ectively, t'e ilitary 'as been c'ar!ed *it' doin! ore o6 t'e . Pilin! anot'er andate t'at re?uires an entirely ne* s5ill set onto an overstretc'ed ilitary not only distracts it 6ro its ain tas5 o6 6i!'tin! *ars but also underutiliCes t'e or!aniCation establis'ed to address t'ese issues( USAID. 1'e United States cannot a66ord to

*ait until -as'in!ton *or5s t'rou!' t'e political tan!le o6 re6or in! 6orei!n assistance to a5e USAID ore 6unctional in t'e 6ield. A6ter decades o6 scrutiny and do*nsiCin!, USAID 'as beco e an ane ic or!aniCation, *it' a 6i6t' t'e nu ber o6 sta66 it 'ad in t'e %GB$s and a 6raction o6 t'e a!ility and autono y it 'ad *'en it *as better 6unded . <e6or s'ould be!in by !ivin! USAID
t'e 'u an and 6inancial resources it needs to succeed in t'e 6ield. O6 course, political *ill is re?uired to presidentKs o66ice. a5e t'ese c'an!es, and t'at *ill ust co e 6ro t'e

DOS contro% and agricu%ture are a%t causes to USAID success

((5A <(hicago (ounci% on 5%oba% Affairs3 "ay )/ 3 =Strengthening USAID: A 6i'e%ine of *ecent ,vents> htt&:??www4thechicagocounci%4org?User$i%es?$i%e?5%oba%AgDeve%o&'ent?*e&ort?5ADIBOccasiona%B-a&erBStrengtheningBUSA ID4&dfA
9ay &%, #$%% + A!ricultural develop ent 'as 'istorically been a si!ni6icant co ponent o6 U.S. 6orei!n aid. -'ile in t'e %G@$s #: percent o6 U.S. 6orei!n aid *ent to a!riculture, t'at nu ber dropped to si7 percent by %GG$ and *as a ea!er one percent by #$$@.% As U.S. support 6or a!ricultural develop ent 'as declined, so 'as t'e capacity o6 USAID to deliver a!ricultural assistance. In %GGF, USAID ceased to be an independent a!ency *it' t'e Ad inistrator reportin!

to t'e President and *as 6olded into t'e State Depart ent .# In #$$B, t'e Secretary o6 State created a "orei!n Assistance Bureau *it'in t'e State Depart ent 2State)"3 to ore closely ali!n t'e USAID bud!et and activities *it' t'e State Depart ent=s diplo acy ob4ectives, endin! USAID=s bud!et autono y. -'ile President 0.-. Bus' increased t'e 6orei!n aid bud!et
si!ni6icantly, t'e ai s o6 USAID=s develop ent *or5 *ere anc'ored in t'e President=s /ational Security Strate!y. "urt'er ore, President Bus'=s si!nature develop ent initiatives, suc' as President=s H er!ency Plan 6or AIDS <elie6 2PHP"A<3 and t'e 9illenniu C'allen!e Corporation 29CC3, *ere placed outside o6 USAID. Aet t'e events o6 t'e past t*o years s'o* t'at t'e tide ay be turnin!. On t'e a!ricultural assistance 6ront, President Oba a=s inau!ural pro ise + 1o t'e people o6 poor nations, *e pled!e to *or5 alon!side you to a5e your 6ar s 6louris'Z + launc'ed a rene*al o6 t'e !lobal a!ricultural develop ent a!enda. 1'is assurance 'as translated into a series o6 policy actions( at t'e 0+@ eetin! in E=A?uila, Italy, in ;uly #$$G, t'e United States pled!ed to invest L&.: billion in 6ood security and a!ricultural develop ent over t'ree yearsQ t'e initiative to 6ul6ill t'is pled!e, "eed t'e "uture, *as 6or ally launc'ed by t'e Secretary o6 State in 9ay #$%$ and *as 'i!'li!'ted as a si!nature pro!ra *'en President Oba a issued t'e 6irst+ever Presidential Policy Directive 2PPD3 6or 0lobal Develop ent in Septe ber #$%$. Si ultaneously, t'e resur!ence o6 attention to a!riculture 'as been ec'oed *it' calls to stren!t'en USAID=s capacity to serve as an innovative develop ent enterprise. In t'e a6ore entioned PPD, t'e President rea66ir ed t'e nation=s oral obli!ation and national security interest in providin! assistance to t'e 'un!ry and desi!nated USAID as t'e lead develop ent a!ency.& 1'e 6irst Suadrennial Diplo acy and Develop ent <evie* 2SDD<3 reiterated t'is desi!nation. Since t'ese announce ents, USAID 'as launc'ed si!ni6icant internal s'i6ts and c'an!es, includin! t'e USAID "O<-A<D re6or e66ort and t'e 6or ation o6 t*o ne* Bureaus, one 6or Policy, Plannin! and Eearnin! 2PPE3 and anot'er 6or "ood Security 2B"S3. 1'e breadt' and dept' o6 t'ese c'an!es 'ave been i pressive. Ei5e*ise, t'e pace o6 c'an!e 'as been re ar5able. -'en 1'e C'ica!o Council released its <ene*in! A erican Eeaders'ip in t'e "i!'t A!ainst 0lobal .un!er and Poverty report in #$$G, t'e picture *as dis al. As an a!ency, USAID *as still !rapplin! *it' its ne* State Depart ent andated priorities to pro ote

peace and security D *it' t'e !oal o6 reducin! *idespread poverty added in as a result o6 co

plaints 6ro t'e develop ent co unity.8 1'is coincided *it' a decline in sta66in! 6or USAID in !eneral, as illustrated by t'e decline in total U.S. personnel direct 'ires 6ro about F,$$$ in %GB:+%GF$ to 4ust above #,$$$ in #$$$+#$$:. 1o reverse t'is ne!ative trend and i prove USAID=s ability to deliver a!ricultural develop ent assistance, 1'e C'ica!o Council

ade t*o speci6ic reco endations( restore t'e leaders'ip role o6 USAID and rebuild USAID=s in+'ouse capacity to develop and ad inister a!ricultural develop ent assistance pro!ra s. 1'e study=s Eeaders 0roup *arned t'at i6 USAID=s leaders'ip role in a!ricultural develop ent *as not restored, ot'er initiatives and e66orts *ere li5ely to 6alter. /o*, since #$$G,
it appears t'at any o6 t'e report=s reco endationsJincludin! t'e prioritiCation o6 a!ricultural develop ent 6unds, i proved leaders'ip and sta66 capacity at USAID, and i proved intera!ency coordinationJ'ave been incorporated into t'e Ad inistration=s international develop ent plans and policies.

*efor' is s%ow $eed the $uture and (ongressiona% bac.%ash

((5A
[C'ica!o Council on 0lobal A66airs, 9ay #$%%, Stren!t'enin! USAID( A 1i eline o6 <ecent Hvents 'ttp())***.t'ec'ica!ocouncil.or!)User"iles)"ile)0lobalA!Develop ent)<eport)0ADIYOccasionalYPaperYStren!t'enin! YUSAID.pd6, As entioned at t'e outset o6 t'is paper, t'e a6ore entioned develop ents s'ould be co ended, but t'ey s'ould also serve as a re inder t'at overall USAID re6or and "eed t'e "uture 'ave only 4ust be!un. Accordin! to Ad inistrator S'a', MAt t'e end o6 t'e day, *'at *e=re
tryin! to do is create 5ind o6 co ercially viable a!riculture sectors in t'ese countries to eli inate t'e 6act t'at every ti e prices do spi5e a little bit, it creates a lot o6 unrest and a lot o6 'u an su66erin!.M#G Creatin! co ercially viable a!riculture ta5es ti e, and "eed t'e "uture is a pro!ra

desi!ned 6or lon!+ter resultsQ its 6ull i pact ay ta5e a decade or ore to bear 6ruit. Sustainin! Con!ressional ent'usias t'rou!' c'an!in! political environ ents *ill li5e*ise be a c'allen!e . In Ad inistrator S'a'=s testi ony to t'e .ouse
"orei!n A66airs Co ittee on 9arc' %B, #$%%, 'e noted t'at t'e Ad inistration=s "A #$%# bud!et outlines si!ni6icant cuts by eli inatin! bilateral develop ent assistance in %% countries and closin! USAID issions in t'ree, cuttin! develop ent assistance 6or at least #$ countries by 'al6, and reallocates 6undin! and sta66 to*ard priority countries and initiatives.&$ .e also 4usti6ied t'e 6unds re?uested 6or "eed t'e "uture, "or t'e L%.% billion *e are re?uestin! 6or bilateral a!ricultural develop ent pro!ra s, *e *ill be able to 'elp up to %@ illion people in up to #$ countriesJ ost o6 t'e *o enJ!ro* enou!' 6ood to 6eed t'eir 6a ilies and brea5 t'e !rips o6 'un!er and poverty. Eess t'an a ont' a6ter t'ese "A #$%# discussions, Con!ress passed t'e "A #$%% bud!et, *'ic'

cut "orei!n Operations 6unds to L&%.& billion + a L&.: billion reduction 6ro

"A #$%$ and a L:.% billion reduction 6ro t'e "A #$%% re?uest.&% State)USAID Develop ent Assistance 6undin! *ill continue at rou!'ly t'e sa e level as "A #$%$ D 'o*ever t'e actual "A #$%% nu bers re6lect a %: percent cut to *'at t'e President put 6or*ard in 'is "A #$%% re?uest. 1'e c'an!e in .ouse leaders'ip and t'e 6ederal bud!et de6icit situation a5e prospects

6or increases to U.S. 6orei!n assistance 6undin! uncertain. Is USAID su66iciently reinvi!orated and stren!t'ened to carry out t'e Ad inistration=s a bitious develop ent a!endaU Only partially , but e66orts over t'e past t*o years 'ave been a pro isin! start. As
early as /ove ber #$%$, Ad inistrator S'a' e7pressed opti is about c'an!es *it'in USAID. IK 'appy to say t'e tide is turnin!Q USAID 'as reestablis'ed a policy bureau, introduced a ne* science and tec'nolo!y division, and ra ped up its 'irin! o6 develop ent pro6essionals to levels *e 'avenKt seen in over a decade.&# Ad inistrator S'a' 'as also indicated t'at "eed t'e "uture is a 6la!s'ip e66ort 6or USAID and a 5ey plan5 in t'e ad inistration=s

!lobal develop ent strate!y, but, -e 'ave to be 'onest about t'e sta5es involvedZOur credibility rests on its success.&& "eed t'e "uture and USAID are 6aced *it' 'i!' e7pectations and 'i!' sta5es.

USAID is underfunded and 'ost of the funding gets drained into the 'i%itary and e'ergencies
6o'.ins / <Cenny 6o'.ins3 'e'ber of the In 6hese 6i'es Board of ,ditors3 =*efor'ing $oreign Aid> August 9 )/ /3 htt&:??intheseti'es4co'?artic%e?@)/ ?A
1'e Vt'ree pillars= t'eory 1'e U.S. develop ent co unity is opti istic t'at substantial c'an!es to A erica=s aid syste are at 'and. And 6or !ood reason( President Barac5 Oba a and Secretary o6 State .illary Clinton 'ave bot' been e7plicit about t'e need 6or re6or and co issioned co pre'ensive revie*s o6 U.S. develop ent policies and practices. Clinton 'as repeatedly stated 'er co it ent to a5in! de6ense, diplo acy and develop ent t'ree

e?ual pillars o6 U.S. 6orei!n policy, reco!niCin! t'at t'ey

ust *or5 in concert i6 t'ey are to serve U.S. interests.

Develop ent *as once t'e province o6 'u anitarians, c'arities, and !overn ents loo5in! to !ain allies in !lobal stru!!les, Clinton said in ;anuary. 1oday it is a strate!ic, econo ic and oral i perativeDas central to advancin! A erican interests and solvin! !lobal proble s as diplo acy or de6ense. Under t'e Bus' ad inistration, critics say USAID lost its capacity to underta5e and onitor a4or pro4ects, ost o6 *'ic' *ere 6ar ed out to private+in so e cases 6or+pro6itD or!aniCations. 1o stren!t'en t'e a!ency, Clinton 'as re?uested increases to USAID=s bud!et and increased t'e a!ency=s sta66in!. And in ;uly #$$G, s'e instituted t'e 6irst+ever State Depart ent Suadrennial Diplo acy and Develop ent <evie* 2SDD<3, intended to de6ine t'e capabilities *e need and t'en atc' resources *it' priorities. 1'e revie* is e7pected to be released early t'is 6all. Oba a, ean*'ile, 'as pled!ed to double U.S. 6orei!n assistance and oderniCe it. .e pro ised to elevate, strea line and e po*er a #%st century U.S. Develop ent A!ency, and last year be!an a cross+!overn ental revie* o6 develop ent policy, t'e Presidential Study Directive on 0lobal Develop ent. .e tapped /ational Security Advisor ;a es ;ones and /ational Hcono ic Develop ent Council Director Ea*rence Su ers to oversee t'e e66ort. Stri5in!ly absent 6ro t'is cross+!overn ental panel *as t'e director o6 USAID, because at t'e ti e t'ere *asn=t one( <a4iv S'a' *asn=t con6ir ed as t'e a!ency=s ad inistrator until ;anuary F. Alt'ou!' t'e lateness o6 S'a'=s appoint ent ay 'ave da a!ed t'e i petus 6or develop ent re6or , critics re!ard 'is eventual con6ir ation as anot'er !ood o en. <e6or advocates ad ire S'a'=s co it ent to develop ent and 'is e7perience outside t'e belt*ay. A edical doctor, S'a' ca e to USAID 6ro t'e Bill [ 9elinda 0ates "oundation, *'ere 'e *as in c'ar!e o6 a!ricultural develop ent pro!ra s. <e6or vs. reality But

so e observers t'in5 S'a' *ill 'ave a 'ard ti e preventin! develop ent assistance 6ro bein! subsu ed by e er!encies, suc' as .aiti, and t'e e7i!encies o6 national security . 2;ust days a6ter 'is con6ir ation, Clinton assi!ned S'a' to oversee t'e country=s .aitian eart'?ua5e response.3 Despite recent inti ations o6 si!ni6icant c'an!es, t'e reality o6 lon!standin! U.S. spendin! 'abits is dauntin!. "irst, t'ere is t'e c'allen!e o6 a5in! t'e t'ree e?ual pillars concept a reality. 9any consider Clinton=s pillars tal5 erely a r'etorical 6louris', !iven t'at t'e United States currently spends %#.: ti es ore on de6ense 2LB@@ billion 6or t'e Depart ent o6 De6ense in #$%$3 t'an on diplo acy and develop ent co bined. Hven i6 Con!ress approves t'e proposed bud!et increase to L:B.@ billion 6or t'e State Depart ent and 6orei!n assistance, uc' o6 t'e develop ent portion *ill !o to support *ars in A6!'anistan and Ira?, and to buttress ilitary operations in Pa5istan. Anot'er source o6 ine?uality is t'at USAID is not a cabinet+level a!ency 2li5e t'e De6ense Depart ent3 but instead resides *it'in t'e State Depart ent. Also, any current or 6uture stren!t'enin! o6 USAID 'as to be understood in t'e conte7t o6 4ust 'o* *ea5 t'e a!ency 'as beco e . Under t'e Bus' ad inistration, it sa* its s'are o6 t'e country=s o66icial develop ent aid 2ODA3 bud!et s'rin5 6ro B$ to 8$ percent. Con!ress, ean*'ile, 'as routinely over*'el ed its bud!et *it' ear ar5s and disperses 6orei!n aid a on! a diCCyin! array o6 !overn ent depart ents , a!encies and o66ices. "inally, USAID continues to operate under t'e anti?uated "orei!n Assistance Act 2"AA3, *'ic' dates bac5 to USAID=s 6oundin! under President ;o'n ". >ennedy. 1'e "AA is a source o6 6rustration and an!er a on! develop ent e7perts , and re6or in! it is t'e central !oal o6 t'e 9oderniCin! "orei!n
Assistance /et*or5 29"A/3, *'ic' brin!s to!et'er develop ent pro6essionals and or!aniCations, and lobbies to c'an!e 'o* -as'in!ton conceives o6 and delivers

6orei!n aid. Accordin! to 6or er USAID directors, t'e

"AA burdens USAID *it' e7cessive and eanin!less reportin!. It also contains buy A erican provisions t'at are costly, and cu berso e , develop ent pro6essionals say. Con!ress is be!innin! to act. In April #$$G, <eps.
.o*ard Ber an 2D+Cali6.3, c'air o6 t'e .ouse "orei!n A66airs Co ittee, and 9ar5 >ir5 2<+Ill.3 introduced t'e Initiatin! "orei!n Assistance <e6or Act o6 #$$G. 9ore t'an %#$ le!islators are no* co+sponsors. 9ean*'ile, Sens. ;o'n >erry 2D+9ass.3 and <ic'ard Eu!ar 2<+Ind.3 advanced t'e "orei!n Assistance <evitaliCation and Accountability Act out o6 co ittee in /ove ber #$$G. It 'as ore t'an #$ co+sponsors, but 'as not yet been sc'eduled 6or debate on t'e Senate 6loor. -'ile concedin! t'at USAID *on=t secure a cabinet+level appoint ent any ti e soon , 9"A/ is *or5in! to a5e sure t'at *'at it calls t'e 0rand Bar!ain beco es part o6 develop ent re6or . 9"A/ e ber /ora O=Connell, o6 -o en 1'rive -orld*ide, says t'is *ould re?uire Con!ress to a!ree to 'ave less say in cra6tin! develop ent a!ency bud!ets. In return, USAID and ot'er a!encies *ould beco e ore accountable 6or pro4ect outco es. 1'is is 'ard 6or t'e political syste says O=Connell, because it doesn=t 6it *it' political needs or ti elines, and *ould also entail aut'oriCin! ore lon!+ter pro4ects. -'at 9"A/ co+c'airs <ev. David Bec5 ann o6 Bread 6or t'e -orld and Dr. 0eor!e In!ra , 6or er deputy assistant ad inistrator o6 USAID, last year called t'e unprecedented o entu created at all levels o6 !overn ent 'as yet to crystalliCe into actual c'an!e.

*efor' Bad
USAID $orward 'a.es things worse de%ays funding &rocess

"aeder )
[Anina 9aeder, 9icroDinero, USAID( delayed 6undin! and current re6or s Septe ber & #$%#, 'ttp())***. icrodinero.co )inde7.p'p)en!lis')nota):#8#)usaid+delayed+6undin!+and+current+re6or s, Aid practitioners 'ave been criticiCin! USAID , t'e U.S. A!ency 6or International Develop ent, 6or its severe delays in t'e 6undin! process. 1'ere are concerns t'at t'e current re6or pro4ect, USAID "or*ard, *ill e7acerbate t'e proble . Accordin! to investi!ations o6 t'e international develop ent social enterprise Deve7, USAID ay ta5e up to %.: years to a*ard its ost co ple7 6undin! via an ISC 2inde6inite ?uantity contract3. 1'ese procure ent delays are a serious issue 6or various reasons( "irst o6 all t'ere is t'e real *orld i pact on develop ent. Pro!ra s !et cancelled or not even started. 1'is a5es or!aniCations lose credibility, personnel and o6 course resourcesJnot only t'e lost USAID a*ard, but also t'e capital invested in t'e biddin! process and pro4ect preparation. Delays can also c'an!e conditions in t'e 6ield and leave researc' outdated . 1'e #$%% re6or pro4ect USAID "or*ard ai s to i prove t'e speed o6 procure ent. It
e p'asiCes ne* partners'ips, innovation and a persistent 6ocus on results. 1'e re6or states( MIt !ives USAID t'e opportunity to trans6or its a!ency and unleas' its 6ull potential to ac'ieve 'i!'+i pact develop ent.M .o*ever, USAID partners are concerned t'at t'e necessary sta66 trainin! o6 t'e a!ency to

6a iliariCe t'e *it' t'e re6or ed procedures *ill lead to ore delays and co plications in t'e process . It is 'ard to redesi!n a process *it'out slo*in! it do*n at t'e sa e ti e .

"isc
+ t'is could be a solvency advocate 6or a conditions cp as *ell

US aid is use%ess unconditiona%%y -a.istan &roves on%y fue%s corru&tion3 disincentives de'ocracy and funds are ineffective
Ibrahi' /0, Bel6er Center Discussion Paper, International Security Pro!ra , .arvard >ennedy Sc'ool, 2ACee , US Aid to Pa5istan D US ta7payers 'ave 6unded Pa5istani corruption, .arvard >ennedy Sc'ool, ;uly #$$G, 'ttp())bel6ercenter.5s!.'arvard.edu)6iles)"inalYDPY#$$GY$BY$@$G#$$G.pd63 ))EA 1'ere is *idespread a!ree ent t'at aid to Pa5istan 'as not been spent e66ectively over t'e past decade. 1'ere is less a!ree ent over 'o* to 6i7 it. 1'is paper contributes to t'e debate in t*o *ays. "irst, it provides t'e ost co pre'ensive survey o6 t'e publicly available in6or ation on U.S. aid to Pa5istan since #$$% to provide an evidence base on *'ic' reco endations can be based. Second, it su!!ests t'ree *ays to i prove aid to Pa5istan, by proposin! t'ree principles *'ic' s'ould underlie any conditions *'ic' are attac'ed to 6uture aid. 1'ey are(%3 Cooperate to <educe Obstruction, Sanction to <educe OppositionJConditions s'ould only be i posed to prevent clear 'ar to e7plicitly e7pressed U.S. intentions 2suc' as Pa5istan spendin! 6unds on nuclear *eapons3. Ot'er outco es, 'o*ever desirable, 2suc' as re?uirin! Pa5istan to s'ut adrassa's *'ic' encoura!e e7tre is 3, s'ould be ac'ieved t'rou!' cooperation, not conditionality. #3 "irst, Do /o .ar JIt *ill be counterproductive to use conditions to icro ana!e speci6ic positive outco es by institutions beyond U.S. controlJt'at *ould be to invite 6ailure. <at'er, conditions s'ould 6ocus on preventin! 'ar 2i.e. preventin! Pa5istan ovin! in t'e *ron! direction, suc' as reducin! civilian oversi!'t over t'e ilitary bud!et, 6or e7a ple3.&3 Put Conditions Only on .o* t'e Aid is SpentJPa5istan and its electorate are acutely sensitive to t'e perception t'at t'e country ay be bein! bullied or bribed. So e ar!ue t'at t'is spea5s to t'e necessity o6 not i posin! any conditions. 1'is is e?uivalent to ar!uin! t'at Pa5istan=s sensitivity licenses it to ore years isspendin! a lar!e proportion o6 U.S. aid oney. A ore lo!ical response is to dra* a distinction bet*een 'o* Pa5istan spends t'e aid 6unds and !eneral Pa5istani actions *'ic' do not directly relate to 'o* Pa5istan spends U.S. aid. 1'e ost i portant aspect o6 t'is paper is t'e reco endation t'at conditions s'ould only be tailored to t'e actual use o6 t'e 6unds t'e selves 2apart 6ro conditions preventin! Pa5istan 6ro ovin! in t'e *ron! direction3. 1'e 6unds s'ould not be used as levera!e to i pose positive collateral re?uire ents on Pa5istan. Underlyin! t'ese conditions is t'e reco!nition t'at conditions *ill never be e66ective unless Pa5istani sensitivities to t'e are properly understood and ta5en into account. A6ter all, t'ey *ill deter ine 'o* Pa5istan reacts. 1'e United States ust also reco!niCe t'at conditionality is only part o6 t'e solutionQ conditions are not an appropriate eans to ac'ieve all t'e outco es *'ic' t'e United States see5s. "or eac', Con!ress s'ould loo5 into t'e various options, e7cludin! sanctions, *'ic' it 'as available to it, in a 'ard+'eaded *ay. 1'e United States ust not provide Pa5istani institutions *it' incentives to act counter to U.S. 6orei!n policy ob4ectives in t'e 6uture. It 'as done so in t'e past. But until t'e sprin! o6 #$$G, no co pre'ensive overvie* o6 t'e 6ull 6undin! to Pa5istan *as possible as t'e 6i!ures *ere 5ept secret. 1'ose 6i!ures, as *ell as a 6ull analysis o6 *'at is 5no*n about 'o* t'ey *ere spent, can no* be evaluated. 1'e available in6or ation paints a picture o6 a syste ic lac5 o6 supervision in t'e provision o6 aid to Pa5istan, o6ten la7 U.S. oversi!'t, and t'e incentiviCation o6 U.S. ta7payerD6unded corruption in t'e Pa5istani ilitary and security services. 1'e aut'or believes t'at t'is is t'e 6irst atte pt to present an overvie* o6 U.S. aid to Pa5istan since #$$%, evaluate it, and present reco endations on 'o* to ensure t'at ista5es are not repeated and lessons are learned.#$U.S. Aid to Pa5istanJU.S. 1a7payers .ave "unded Pa5istani Corruption Since %G:%, t'e United States 'as !iven si!ni6icant 6undin! to Pa5istan. Since Septe ber %%, #$$%, U.S. 6undin! 'as been intended 6or t'e 6ollo*in! 6ive purposes( to cover t'e e7tra cost to Pa5istan=s ilitary o6 6i!'tin! terroris Q provide Pa5istan *it' ilitary e?uip ent to 6i!'t terroris Q to provide develop ent and 'u anitarian assistanceQ covert 6unds 2suc' as bounties or priCe oney3Q and cas' trans6ers directly to t'e Pa5istani !overn ent=s bud!et. Pa5istan one o6 only 6our countries to receive direct cas' trans6ers. Bet*een #$$# and #$$@, t'is t'an5 you to Pa5istan 6or 'elp in 6i!'tin! terroris cost t'e U.S. ta7payer L#,&F8,$$$,$$$. By its nature, t'ese cas' trans6ers beca e Pa5istani soverei!n 6unds, precludin! U.S. oversi!'t. Since #$$%, t'ere 'ave been si!ni6icant concerns over t'e 6undin!( \ 1'e United States 'as not been transparent about t'e 6unds. Until #$$G, in6or ation 'as been eit'er 'idden 6ro t'e public or released in a 6or too a!!re!ated to allo* 6or e66ective public oversi!'t. 1'ose *'o 'ave seen t'e a!ree ents on 'o* 6unds are to be spent say t'ey 'ave lac5ed concrete benc' ar5s, so eti es even concrete 6i!ures, and *ere too va!ue to be e66ective.\ 1'e United States isused develop ent 6unds. Operatin! costs *ere 'i!', too uc' o6 t'e aid *as ine66ective, and United States A!ency 6or International Develop ent 2USAID3 pro!ra s 'ave been 'a pered by insu66icient resources and security concerns.\ 1'ere *as a lac5 o6 a!reed strate!y 6or use o6 6unds. Ai s 6or t'e ilitary aid *ere poorly de6ined, and any o6 t'e a!ree ents on 'o* 6unds *ere to be spent *ere inade?uate.\ 1'e United States 'ad inade?uate procedures 6or c'ec5in!

'o* Pa5istan spent t'e 6unds. U.S. H bassy sta66 in Pa5istan *ere not re?uired to c'ec5 'o* t'e Pa5istani ilitary actually spent U.S. 6unds, t'e Pa5istani ar y insisted t'at t'e "ederally Ad inistered 1ribal Areas 2"A1A3J*'ere uc' o6 t'e oney *as to be spentJ*ere too dan!erous to visit, a5in! sustained oversi!'t t'ere i possibleQ t'e United States 'as not been able to c'ec5 Pa5istani ar y records on 'o* t'e oney *as bein! spentQ t'e procedures in place to c'ec5 'o* Pa5istan spent t'e oney *ere inade?uate, and t'e decision to !ive Pa5istan 6unds in t'e 6or o6 rei burse ents ade ade?uate oversi!'t i possible.\ U.S. 6unds disincentiviCed de ocratiCation by !ivin! t'e ilitary a disincentive to sub it to civilian control, increasin! its independence 6ro !overn ent, and i!norin! evidence o6 pro6iteerin! 6ro ilitary bud!ets. \ 1'e Pa5istani ilitary did not use ost o6 t'e 6unds 6or t'e a!reed ob4ective o6 6i!'tin! terror. Pa5istan bou!'t uc' conventional ilitary e?uip ent. H7a ples include "+%Bs, aircra6t+ ounted ar a ents, anti+s'ip and anti issile de6ense syste s, and an air de6ense radar syste costin! L#$$ illion, despite t'e 6act t'at t'e terrorists in t'e "A1A 'ave no air attac5 capability. Over 'al6 o6 t'e total 6undsJ:8.G percentJ*ere spent on 6i!'ter aircra6t and *eapons, over a ?uarterJ#B.B# percentJon support and ot'er aircra6t, and %$ percent on advanced *eapons syste s. \ 1'ere is also clear evidence o6 corruption *it'in t'e Pa5istani ar y. 1'e United States provided L%.: illion to rei burse Pa5istan 6or da a!e to /avy ve'icles *'ic' 'ad not been used in co bat, L%: illion 6or t'e Pa5istani ar y to build bun5ers 6or *'ic' t'ere is no evidence t'at t'ey e7ist, and about L&$ illion 6or Pa5istani road+ buildin! 6or *'ic' t'ere is no suc' evidence eit'er. "i6ty+6ive illion dollars *as provided 6or 'elicopter aintenance 6or t'e entire national 'elicopter 6leet *'ic' *as not per6or ed. Pa5istan continued to receive around L@$ illion per ont' 6or ilitary operations durin! cease6ire periods *'en troops *ere in t'eir barrac5s. U.S. o66icials visitin! t'e "A1A 6ound Pa5istani #%U.S. Aid to Pa5istanJU.S. 1a7payers .ave "unded Pa5istani Corruption "rontier Corps units poorly e?uipped, one reportin! t'at 'e sa* e bers o6 t'e Corps standin!Z in t'e sno* in sandals, *it' several *earin! -orld -ar IDera pit' 'el ets and carryin! barely 6unctional >alas'ni5ov ri6les *it' 4ust %$ rounds o6 a unition eac'. At one point, Pa5istani President PerveC 9us'arra6 'i sel6 co plained t'at Pa5istan=s 'elicopters needed ore U.S. spare parts and support, despite reports 6ro U.S. ilitary o66icials t'at t'e United States 'ad provided L@ illion *ort' o6 Cobra parts over t'e previous si7 ont's.1'e !reat a4ority o6 t'e Coalition Support "unds !iven by t'e United States to rei burse Pa5istan 6or counterterroris operations *as reportedly diverted to t'e 9inistry o6 "inance, *it' only L&$$ illion reac'in! t'e Ar y in t'e 6inancial year endin! #$$@. 1'is is evidence o6 corruption at t'e 'i!'est level. 1'e result is t'at, a6ter ei!'t years o6 6undin!, any Pa5istani troops in t'e "A1A lac5 basic e?uip ent suc' as su66icient a unition, ar ored vests, and s'oes. "or any years, U.S. o66icials i!nored clear evidence t'at t'e ilitary *as not usin! U.S. 6unds to 6urt'er U.S. 6orei!n policy ob4ectives. \ Pa5istani counterterroris 6ailed until #$$G. Durin! t'e years #$$% to id+#$$G, si!ni6icant parts o6 t'e "A1A *ere under 1aliban control, and accordin! to t'e #$$F /ational Intelli!ence Hsti ate, al Saeda 'as reconstituted a sa6e 'aven in t'e "A1A. 1ellin!ly, *'en t'e Pa5istani ar y did launc' an e66ective operation in 9ala5and in id+#$$G, it *as pri arily in response to public pressure *it'in Pa5istan, not U.S. aid. Sadly, it see s t'at Pa5istan=s ilitary and security services 'ave 6or any years been a blac5 'ole 6or U.S. 6unds. 1'ey 'ave enric'ed individuals at t'e e7pense o6 t'e proper 6unctionin! o6 Pa5istani institutions and t'e country=s ability to 6i!'t its e7tre ist ene ies and provided already 5leptocratic institutions *it' 6urt'er incentives 6or corruption. 9any o6 t'e incentives 6or Pa5istani ar y corruption are lon!standin!, institutional, and re ain in place today. Preventin! t'is per6or ance 6ro recurrin! *ill re?uire c'an!es to t'e oversi!'t syste suc' as t'e use o6 e7perts and t'e creation o6 a dedicated onitorin! !roup as described belo*. But t'at *ill not be su66icient. It *ill also re?uire an understandin! t'at conditionality is 4ust one o6 t'e ite s in t'e toolbo7 available 6or !ettin! aid ri!'t and an understandin! o6 'o* and *'en it s'ould be used, to *'ic' t'is paper contributes.

(onditiona% aid is the on%y effective 'echanis' to see refor'

Ibrahi' /0, Bel6er Center Discussion Paper, International Security Pro!ra , .arvard >ennedy Sc'ool, 2ACee , US Aid to Pa5istan D US ta7payers 'ave 6unded Pa5istani corruption, .arvard >ennedy Sc'ool, ;uly #$$G, 'ttp())bel6ercenter.5s!.'arvard.edu)6iles)"inalYDPY#$$GY$BY$@$G#$$G.pd63 ))EA "inally, conditionality is essential i6 t'e 'u anitarian aid is to reac' its intended recipients. 1'e 6act t'at aid 6or education and *orldly, as opposed to reli!ious, co pre'ensive study pro!ra s can 'elp to iti!ate t'e spread o6 ilitancy a on! youn!er !enerations is *idely ac5no*led!ed a on! U.S. policy a5ers. But too uc' o6 t'e aid allocated to t'is purpose over t'e previous ei!'t years 'as not been e66ective. 1'ere are various reasons 6or t'is, suc' as security concerns 'a perin! t'e ability to tar!et t'e aid correctly, t'e use o6 6orei!n contractors resultin! in enric'in! nei!'borin! countries, and a is!uided 6ocus on tan!ibles suc' as sc'ool buildin!s at t'e e7pense o6 intan!ibles suc' as better ?uality teac'in!.@% 0iven t'is, it is essential to put a co'erent distribution ec'anis in place 6or non+ ilitary aid. Hven re!ardin! t'is as a condition is isleadin!. It is a precondition 6or its bein! *ort'*'ile to !ive t'e aid in t'e 6irst place.

Uniq: Border Security Now

US assists "e#ico border through "erida Initiatives : "e#ican Border Security is receiving )!9D 'i%%ion
See%.e and $in.%ea !, Clare <ibando Seel5e is a Specialist in Eatin A erican A66airs and >ristin 9. "in5lea is Analyst in Do estic Security, 2<ibando and "in5lea, U.S.+9e7ican Security Cooperation( 1'e 9]rida Initiative and Beyond, B)#B)%&, Con!ressional <esearc' Service, 'ttp())6pc.state.!ov)docu ents)or!aniCation)#%$G#%.pd63 ))EA
BraCen violence perpetrated by dru! tra66ic5in! or!aniCations and ot'er cri inal !roups is t'reatenin! citiCen security and !overnance in so e parts o6 9e7ico, a country *it' *'ic' t'e United States s'ares a nearly #,$$$ ile border and L:$$ billion in annual trade. Alt'ou!' t'e violence in 9e7ico 'as !enerally declined since late #$%%, analysts esti ate t'at it ay 'ave clai ed ore t'an B$,$$$ lives bet*een Dece ber #$$B and /ove ber #$%#. 1'e violence 'as increased U.S. concerns about stability in 9e7ico, a 5ey political and econo ic ally, and about t'e possibility o6 violence spillin! over into t'e United States. U.S.+9e7ican security cooperation increased si!ni6icantly as a result o6 t'e develop ent and i ple entation o6 t'e 9]rida Initiative, a counterdru! and anticri e assistance pac5a!e 6or 9e7ico and Central A erica 6irst 6unded in "A#$$@. -'ereas U.S. assistance initially 6ocused on trainin! and e?uippin! 9e7ican counterdru! 6orces, it no* places ore e p'asis on addressin! t'e *ea5 institutions and underlyin! societal proble s t'at 'ave allo*ed t'e dru! trade to 6louris' in 9e7ico. 1'e 9]rida strate!y no* 6ocuses on 2%3 disruptin! or!aniCed cri inal !roups, 2#3 institutionaliCin! t'e rule o6 la*, 2&3 creating a ) st century border, and 283 buildin! stron! and resilient co unities. As part o6 t'e 9]rida Initiative, t'e 9e7ican !overn ent pled!ed to intensi6y its anticri e e66orts and t'e U.S. !overn ent pled!ed to address dru! de and and t'e illicit tra66ic5in! o6 6irear s and bul5 currency to 9e7ico. Inau!urated on Dece ber %, #$%#, 9e7ican President Hnri?ue Pe^a /ieto 'as vo*ed to continue U.S.+9e7ican security cooperation, albeit *it' a s'i6t in 6ocus to*ard reducin! violent cri e in 9e7ico. Pe^a /ieto 'as be!un to ad4ust t'e process and priorities o6 U.S.+9e7ican e66orts, ad4ust ents *'ic' President Oba a 'as pled!ed to support. 1'e Interior 9inistry is no* t'e pri ary entity t'rou!' *'ic' 9]rida trainin! and e?uip ent re?uests are coordinated and intelli!ence is c'anneled. 1'e 9e7ican !overn ent is re?uestin! increased assistance 6or 4udicial re6or and prevention e66orts, but li itin! U.S. involve ent in so e la* en6orce ent and intelli!ence operations. As t'e Pe^a /ieto !overn ent 6les'es out its security strate!y, 9]rida pro!ra s are li5ely to be ad4usted in order to support t'ose e66orts t'at ali!n *it' U.S. priorities. 1'e %%&t' Con!ress is li5ely to continue 6undin! and overseein! t'e 9]rida Initiative and related do estic initiatives, but ay also consider supportin! ne* pro!ra s. "ro "A#$$@ to "A#$%#, Con!ress appropriated L%.G billion in 9]rida assistance 6or 9e7ico, rou!'ly L%.# billion o6 *'ic' 'ad been delivered as o6 April #$%&. 1'e Oba a Ad inistration as5ed 6or L#&8.$ illion 6or 9]rida pro!ra s in in its "A#$%& bud!et re?uest and L%@& illion in its "A#$%8 re?uest. Con!ress ay *is' to e7a ine 'o* *ell t'e 9e7ican !overn ent=s security strate!y supports U.S. interests in 9e7ico. Con!ressional approval *ill be needed s'ould t'e State Depart ent see5 to repro!ra so e o6 t'e 6undin! already in t'e pipeline 6or 9]rida, or s'i6t ne* 6undin! to better ali!n *it' 9e7ico=s ne* priorities. S'ould disa!ree ents occur bet*een 9e7ican and U.S. priorities, Con!ress ay *ei!' in on 'o* t'ose disa!ree ents s'ould be resolved. Con!ress ay also debate 'o* to easure t'e i pact o6 9]rida Initiative pro!ra s, as *ell as t'e e7tent to *'ic' 9]rida 'as evolved to respond to c'an!in! security conditions in 9e7ico. Anot'er issue o6 con!ressional interest involves *'et'er 9e7ico is eetin! t'e 'u an ri!'ts conditions placed on 9]rida Initiative 6undin!.

"isc
C'risty and 9oore %&, Patric5 C'risty and Hvan 9oore are senior policy analysts at t'e "orei!n Policy Initiative 2Patric5 and Hvan, Don=t Eet Se?uestration Cut "orei!n Aid, #)#F)%&, US /e*s and -orld <eport, 'ttp())***.usne*s.co )opinion)blo!s)*orld+report)#$%&)$#)#F)dont+let+se?uestration+cut+6orei!n+aid3 ))EA 9uc' attention 'as 6ocused on 'o* loo in! se?uestration cuts *ill 'ar national de6ense, but 6e* people understand 'o* se?uestrationKs 9arc' #$%& onset *ill also 'urt U.S. 6orei!n assistance pro!ra s t'at advance A ericaKs security, prosperity, and !lobal leaders'ip. Under se?uestration, spendin! on international a66airs 2a a4or co ponent o6 *'ic' is U.S. 6orei!n assistance3 *ill be slas'ed not only by rou!'ly :.& percent in 6iscal year #$%&, but also by as uc' as L:$ billion over t'e ne7t decadeJrou!'ly *'at t'e United States spends on diplo acy and develop ent in a sin!le year. ItKs i portant to re e ber t'at A ericaKs co it ent to 6orei!n assistance re6lects not only t'e nationKs oral c'aracter, but also its strate!ic and econo ic interests. "irst, 6orei!n assistance pro otes national security by 'elpin! to 6i!'t t'e causes o6 terroris , stabiliCe *ea5 states, and pro ote re!ional+level security and !lobal stability. 1o ta5e a 5ey e7a ple, 6orei!n assistance is playin! a crucial role in A ericaKs lar!er stru!!le to co bat conditions t'at can spa*n terroris Jna ely, poverty, *ea5 institutions, and corruptionJby pro otin! econo ic develop ent, !ood !overnance, and transparency in t'e 9iddle Hast and Sout' Asia. Second, 6orei!n assistance pro otes prosperity and sel6 reliance by encoura!in! econo ic develop ent and private enterprise in aid+recipient countries, as *ell as openin! and developin! international ar5ets 6or t'e United States. "or e7a ple, Sout' >oreaJ*'ic' *as a leadin! bene6actor o6 U.S. 6orei!n assistance a6ter 'avin! been devastated in t'e >orean -arJis no* A ericaKs sevent' lar!est tradin! partner, a vibrant de ocracy, and a si!ni6icant donor o6 6orei!n assistance. 1'ird, 6orei!n assistance advances A ericaKs oral values and 'u anitarian interests by savin! lives, 6i!'tin! poverty and 'un!er, co batin! in6ectious diseases li5e .IX)AIDS, pro otin! education, and bolsterin! de ocratic institutions. "or e7a ple, President 0eor!e -. Bus' launc'ed t'e PresidentKs H er!ency Plan 6or AIDS <elie6 2PHP"A<3 in #$$& to battle t'e spread o6 .IX)AIDS in A6rica. In con4unction *it' t'e 0lobal "und to "i!'t AIDS, 9alaria, and 1uberculosis, PHP"A< 'as ac'ieved real and ob4ective results. "orei!n assistanceJproperly understoodJis neit'er national bribery nor altruistic c'arity, but rat'er strate!ic invest ent. As Paul D. 9iller, a 6or er director 6or A6!'anistan in t'e /ational Security Council under Presidents Bus' and Oba a *'o earlier served as an Ar y reservist in A6!'anistan, *rote( "orei!n aid 'elps countries *'ose interests ali!n *it' our o*n increase t'eir capacities. 1'e United States !ives oney to 'elp select countriesJnot t'e entire *orldJi prove speci6ic abilities, li5e t'eir ability to provide public security, de6end t'eir borders, or buy and sell !oods.... Aid is 'ard po*er. It is a *eapon t'e United States uses to stren!t'en allies [and partners, and, t'us, ourselves. 1o be clear, t'e !oal o6 results+ driven 6orei!n assistance is to 'elp A ericaKs partners beco e sel6 reliant. -'ile it is true t'at certain develop ent pro!ra s 6aced c'allen!es in t'e past, -as'in!ton 'as increasin!ly e braced ne*Jand ar!uably revolutionaryJre6or s over t'e last decade to a5e 6orei!n assistance even ore transparent, accountable, and ore e66ective. Aet, despite si!ni6icant re6or s, 6orei!n assistance is still 6re?uently isunderstood. As Sen. 9arco <ubio 'as noted, even t'ou!' 6orei!n assistance co prises rou!'ly % percent o6 total U.S. !overn ent spendin!,Z t'ereKs t'is urban le!end out t'ere t'at so e'o*, i6 *e 4ust eli inated 6orei!n aid, *eKd 'ave all t'e oney *e need to *ipe out our debt. "orei!n aid is very s all. ItKs a si!ni6icant nu ber o6 dollars, no doubt about it, and one dollar o6 *aste is too uc'. But i6 you *iped out all t'e 6orei!n aid in t'e *orld, you *ouldnKt notice it in ter s o6 t'e debt conversation. .o*ever, i6 you co pletely *iped out U.S. 6orei!n assistance, you *ould notice t'e severe and li5ely irreparable da a!e to A ericaKs security, prosperity, and !lobal leaders'ip. In addition to 'ar in! U.S. diplo acy and international develop ent, se?uestration cuts *ill 6urt'er under ine A ericaKs ability to address t'e c'allen!es o6 t'e #%st century. 1'at is because current la* *ill slas' L:$$ billionJin addition to t'e L8@F billion t'at is already bein! cut by t'e Oba a ad inistrationJ6ro de6ense spendin! over t'e ne7t decade. Indeed, Penta!on leaders 'ave repeatedly *arned t'at near+ter bud!et reductions *ill severely restrict t'e ilitaryKs ability to ade?uately protect A ericaKs econo ic and security interests. 1'is *ill 'ave a a4or i pact on !lobal security. As 9arine Corps Co andant 0eneral ;a es ". A os recently *arned in testi ony be6ore t'e .ouse Ar ed Services Co ittee( [A, 6iscally driven lapse in A erican leaders'ip and 6or*ard en!a!e ent *ill create a void in *'ic' old t'reats *ill be le6t unaddressed and ne* security c'allen!es *ill 6ind roo to !ro*. 1'ere s'ould be no isunderstandin! Z[S,e?uestration *ill 'ave a deleterious e66ect on t'e stability o6 !lobal order, t'e perceptions o6 our ene ies, and t'e con6idence o6 our allies. I6 t'e United States is to re ain a !lobal leader in t'e #%st century, t'en it is critical t'at leaders in -as'in!ton *or5 to sustain invest ents in 6orei!n assistance, diplo acy, and national de6ense. As t'e on!oin! "renc' intervention in 9ali 'as de onstrated, unstable territory can ?uic5ly beco e a sa6e+'aven 6or e7tre ist !roups. 1'e trut' is t'at a robust and strate!ically+applied 6orei!n assistance bud!etJin con4unction *it' a stron! ilitaryJcan bolster A ericaKs capacity to respond to critical !lobal events. Allo*in! se?uestration to occur, 'o*ever, *ould under ine bot' A ericaKs strate!ic interests and its values.

6hu'&ers

6hu'&er 5enera%
)/ 9 budget 'a.es trade:offs inevitab%e N-E !
[/onpro6it Suarterly, <ic5 Co'en, 1'e /onpro6it Si!ni6icance o6 U.S. "orei!n Assistance in t'e USAID "A#$%8 Bud!et 9ay # #$%&, 'ttp())***.nonpro6it?uarterly.or!)policysocial+conte7t)####:+t'e+nonpro6it+si!ni6icance+o6+u+s+ 6orei!n+assistance+in+t'e+usaid+6y#$%8+bud!et.'t l, 1'e t*elve accounts t'at co prise t'e 'u anitarian and develop ent assistance bud!et o6 USAID *ill be L#$.8 billion i6 t'e President=s "A#$%8 bud!et is approved as+is. Out o6 a L&.FF trillion dollar bud!et, 6orei!n assistance o6 t'is sort *ould be sli!'tly ore t'an $.:
percent o6 t'e total bud!et o6 t'e 6ederal !overn ent. 1o!et'er, t'e Depart ent o6 State and USAID *ould !et a total o6 L8F.@ billion, do*n 6ro L:%.% billion in t'e "A#$%& Continuin! <esolution, a!ain a piddlin! s'are o6 t'e total bud!et, rou!'ly %.& percent. 1o t'e President=s credit, t'ere are so e areas o6 increased 6undin! in 6orei!n aid and so e notable areas o6 cuts ( _A s all increase in !lobal 'ealt' 6undin! to L@.& billion, up 6ro illion 6or t'e President=s 9alaria Initiative3 _A i7 o6 co it ents 6or *or5 t'rou!' international or!aniCationsJan increase in

L@.% billion in "A#$%#, *it' si!ni6icant attention to

alaria 2LBF$

t'e U.S. pay ent 6or t'e United /ations bud!et to LB%F illion, up 6ro L:B@ illion in "A#$%#Q an increase in 6undin! 6or t'e Inter+A erican Develop ent Ban5 6ro LF: illion to L%$# illionQ but a cut 6ro L&$ illion to L#8 illion 6or t'e A6rican Develop ent "oundation _/early a doublin! 6or international disaster assistance to L#.$8 billion
_A decline in econo ic develop ent assistance, 6ro LB.%8 billion in "A#$%# to L:.8: billion in "A#$%8

_A cut in econo ic assistance to t'e troubled Palestinian areas o6 0aCa and t'e -est Ban5 6ro L&G: illion to L&F$ illion, and a cut o6 L8& illion in aid to sub+Sa'aran A6rica _A new co''it'ent o6 L:@$ illion 6or a ne* 9iddle Hast and /ort' A6rica Incentive "und to supportZpolitical re6or , 6ree and
6air elections, de ocratic institutions, transparent and accountable !overn ent, transitional 4ustice, open ar5ets, and inclusive !ro*t' 1'e 9illenniu C'allen!e Corporation is slated to !et L@G@.# illion i6 President Oba a=s bud!et is approved. -it'in t'at nu ber, LBFB.# illion is slated 6or 9CC co pacts *it' Eiberia, 9orocco, /i!er, Sierra Eeone, and 1anCania, but t'e 9CC sta66 ac5no*led!e t'at total isn=t enou!' to 6und all 6ive in addition to Benin, Hl Salvador, 0'ana and 0eor!ia, all in t'e idst o6 developin! t'eir co pacts, and at least t'ree o6 t'e slated to su66er cuts 6ro se?uestration, not*it'standin! *'atever !ets approved in t'e "A#$%8 bud!et.

6hu'&er 1aiti
1aiti thu'&s (assata @:)F
[Donna Cassata, Associated Press, ;une #: #$%&, <eport 6inds USAID spendin! on aid and 'ousin! in .aiti is &$P o6 *'at *as pro ised 'ttp())canada'aitiaction.ca)content)report+6inds+usaid+spendin!+aid+and+'ousin!+'aiti+&$+*'at+*as+ pro ised, -AS.I/01O/ ++ 1'e U.S. !overn ent 'ad a bitious plans to 'elp eart'?ua5e+rava!ed .aiti *'ere ore t'an t'ree+6ourt's o6 t'e population lives on less t'an L# a day + construction o6 %:,$$$ 'o es in t'e poorest country in t'e -estern .e isp'ere. Disputes over land ri!'ts, inaccurate esti ates and 'i!'er costs 'ave 6orced t'e U.S. A!ency 6or International Develop ent to drastically scale bac5
t'ose plans and le6t e bers o6 Con!ress ?uestionin! *'et'er A erican ta7 dollars are deliverin! t'e 'elp 6irst pro ised a6ter t'e ;an. %#, #$%$ eart'?ua5e. 1'e 0overn ent Accountability O66ice, in a report released on 1uesday, 6ound t'at as o6 9arc' #$%& t'e a!ency 'ad disbursed only &% percent o6 LB:% illion despite t'e !overn entKs insistence t'at it *as co itted to .aitiKs reconstruction. 1'e 0AO also 6ound t'at Ma substantial a ount o6 pro!ress on pro4ect

activities re ains to be co pleted.M Instead o6 %:,$$$ 'o

es 6or F:,$$$ to G$,$$$ bene6iciaries, t'e a!ency plans to build #,B8G 'o es 6or so e %&,#$$ to %:,G$$ bene6iciaries. In 6act, t'e a!ency is e7pected to build G$B 'ouses and non+!overn ent a!encies and ot'er partners are on tap to construct %,F8& 'o es.

A on! t'e proble s causin! delays and cost increases *as ac?uirin! t'e land titles to build as *ell as t'e .aitian !overn entKs de and t'at t'e 'o es 'ave 6lus' toilets. One di66iculty *as t'at be6ore t'e ;anuary #$%$ eart'?ua5e, .aiti 'ad no *aste*ater treat ent plants. Since t'en, a te porary 6acility 'as been constructed at one location and a per anent plant built near t'e capital city o6 Port+au+
Prince t'ou!' itKs unclear *'et'er t'e 6acilities can serve t'e 'o es. 1'e eart'?ua5e displaced so e # econo ic and 'u anitarian assistance *orld*ide.

Con!ress voted to provide L%.%8 billion in reconstruction 6unds, includin! LB:%

illion people, 5illed about #&$,$$$ and in4ured &$$,$$$. illion 6or t'e a!ency, *'ic' provides U.S.

6hu'&er -a.istan
USAID in -a.istan thu'&s e#&enditures wi%% continue to grow "ah'ood )
[;aved 9a' ood, Pa5istan Observer, USAID to spend L@$$ #$%#, 'ttp())pa5observer.net)detailne*s.aspUid`%@#&GG,
a4or sectors J econo ic !ro*t', ener!y, education, 'ealt' and co country. ;oc5 Conly, 9ission Director o6 t'e USAID

in : Pa5

a4or sectors 6ro

ne7t year /ove ber %: spend about L@$$ illion in

1'ursday, /ove ber %:, #$%# + Isla abadJ1'e United States A!ency 6or International Develop ent 2USAID3 *ould

di66erent develop ent pro4ects in Pa5istan in t'e 6inancial year #$%& t'at 'as started 6ro Pro!ra Observer. Xir!ini4a 9or!an, Country .ead o6 t'e USAID Pro!ra

t'e %st o6 Oct #$%#. 1'e USAID 'as tar!eted 6ive unity in6rastructure develop ent, *it' t'e ission to pro ote stability and prosperity in t'e

e in Pa5istan, disclosed t'is in an intervie* to Pa5istan

e 6acilitated t'e Pa5istan Observer=s intervie* in t'e USAID=s o66ice in t'e US H bassy. 9s 9or!an and 9att'e* Boland, Deputy Spo5esperson o6 t'e US H bassy, Isla abad, *ere also present durin! t'e intervie*. Belo* is t'e detail o6 t'e intervie*. S( "or 'o* lon! you 'ave been in Pa5istan and 'eadin! t'e USAID pro!ra eU A( I ca e to Pa5istan in ;une t'is year to *or5 *it' t'e USAID Pro!ra e as t'e 9ission Director. S( -'at otivated you to 'ead t'e USAID pro!ra e in Pa5istan and 'o* is your e7perience o6 *or5in! in t'is countryU A( I a 'ere to a5e e66orts to ac'ieve t'e 5ey !oals o6 t'e US Con!ress o6 a5in! Pa5istan a stable, peace6ul and prosperous country. Pa5istan is a 5ey ally o6 t'e United States because o6 its strate!ic location in t'e re!ion. Stability, prosperity and peace in Pa5istan are essential 6or t'e United States so t'at t'is country could play its role in t'e re!ional develop ent, peace and security. In %G@G+G$ I 'ad been *or5in! in Pa5istan. In #$%# y boss 2!lobal 'ead o6 t'e USAID Pro!ra e3 as5ed e to 4oin t'e pro!ra e in Pa5istan and I 'appily accepted t'is o66er. S( .o* do you see t'e culture and people o6 Pa5istanU A( 1'e people and t'e culture o6 Pa5istan are very nice. I li5e t'e people o6 Pa5istan and t'eir 'ospitality. S( -'at are t'e 5ey ob4ectives o6 launc'in! t'e USAID pro4ects in Pa5istanU A( 1'e United States *ant to see peace, prosperity and stability in Pa5istan. 1'at=s *'y t'e US !overn ent 'ad en!a!ed t'e USAID in Pa5istan and allocatin! illions o6 dollars every year 6or di66erent develop ent pro4ects. 1o ac'ieve t'ese !oals, *e 'ave tar!eted 6ive a4or areas Y econo ic !ro*t', ener!y develop ent, 'ealt', education and co unity in6rastructure. 1'ese are t'e areas t'at need proper 6ocus and 6inancial support 6or develop ent. S( .o* uc' a ount is bein! spent in a year on t'e

USAID pro4ects in Pa5istanU A( -e are seein! an increase in t'e a ount o6 e7penditure on t'e USAID pro4ects as several pro4ects are at an advanced sta!e o6 co pletion t'at re?uire ore e7penditures. In "inancial Aear #$%&, a 'u!e a ount o6 L@$$ illion *ould be utiliCed 6or t'e develop ent o6 t'e USAID pro4ects in Pa5istan . Harlier, t'e annual ?uantu o6 e7penditures on t'e USAID pro4ect *as less t'an t'is a ount. S( Any ne* sectors)areas bein! included in t'e upco in! pro4ectsU A( -e 'ave
s'ort+listed 6ive 5ey sectors in t'e USAID pro!ra e t'at I 'ave entioned earlier. -e select a ne* pro4ect 6ro sta5e'olders. Once t'e ne* pro4ect !ets all t'e andatory approvals, *e start *or5 on it i ediately. *it'in t'ese 6ive areas a6ter consultin! t'e

to protect borders; ensure the safety of transportation systems; protect critical infrastructure; identify persons who would do harm; and respond to prevent, mitigate, react to and recover from acts of terror. Our increased investment in homeland security really isnt much of a departure from Raytheons
focus prior to 9/11, but it represents a strategy to accelerate our growth by applying a commercial model for product development and solution delivery. Our focus has always been to support those who defend us, so support of our military and security agencies remains at the core of Raytheons mission. Many technologies and solutions we have

developed for use by the military have also proven to be very functional in the homeland security environment. e build and integrate systems for persistent surveillance, command and control, target
detection and trac!ing, intelligence collection and analysis, and effects for the physical and cyber battlefields of our defense customers. e are increasing our focus on applying those core competencies to the hardest problems of homeland security agencies, and we are bringing them to mar!et in a one"to"many business model. Respecting they are often moving rapidly, dealing with a swiftly evolving threat, and are budget constrained, we model, simulate and visuali#e solutions for each customer, offering off"the"shelf components that are $uic!ly tailored to their needs and built with open standards.

Among the priorities of the U.S. Department of Homeland Security are cybersecurity and critical infrastructure protection. %ow has Raytheon stepped up its presence in these areas, and what do you see the future holding in these !ey arenas& e certainly have stepped up the pace of our investment, development and ac!uisitions in the cybersecurity domain . 'n history, some of the greatest revelations in
science have come from (outsiders) * those not constrained in their thin!ing by a disciplines or an industrys standard paradigms. ' am proud of and e+cited by the innovations being developed and brought to the cybersecurity mar!et by Raytheon engineers * brilliant technologists not constrained by the paradigms of the information technology industry. ,heir way of thin!ing * about sensors, effects, command and control * has produced ama#ing results on Raytheon networ!s and computing devices. ' can say little about the newest of these solutions at this time because intellectual property protections are still being enacted, but suffice it to say we have compelling offerings for the -... /omprehensive 0ational /yber 'nitiative. 1nd our investment has been steady, as illustrated by our ac$uisitions of 220 ,echnologies, ,elemus .olutions, .' 3overnment .olutions, and Oa!ley 0etwor!s4 mi+ing the 501 of these cyber firms with that of Raytheons legacy intelligence and information systems capabilities has produced an e+citing range of opportunities for us and our customers. 'n fact, much of your professional bac!ground over the past more than 67 years has been in information technology systems. %ow does your own ', bac!ground fit in with Raytheons strategy, and the integration of ', systems& 8rior to 9oining Raytheon, ' spent several years wor!ing with government agencies to re"engineer operations using commercial"off"the"shelf software and managed services. 1t Raytheon, ' am wor!ing with our businesses to apply

similar commercial business models to bring our superior technical capabilities to a wider range of customers. eve also applied concepts from business process engineering to help security agencies develop solutions using the right mi+ of policy, processes, people and technology. ', is always a part of those solutions. ,he (rubber meets the road) at the level of the men and women who are charged with the protection of our country and our people4 the engine that powers them is information, and ', is the !ey to giving them the right information at the right time. :ets focus, if we may, on border security. hat specifically is Raytheon doing in the border security arena, and, if you can, could you please provide a bit of a glimpse into the future& "or years, we#ve been $nown for border security capabilities including

radar and other persistent, mobile and re%deployable air, ground and maritime surveillance systems such as &A'D (&apid Aerostat 'nitial Deployment). *ur radar systems are deployed in the air and on the sea, protecting the aerial and maritime routes to our shores and borders. Many of our systems are deployed and in use by our military forces overseas as well as in the United States.+ e also produce and integrate intelligence capabilities, aerial platforms, communications interoperability and even nonlethal force protection systems, such as our directed energy systems $nown as Active Denial and Silent ,uardian. e enable the rapid integration and ris$ assessment of passenger, visa applicant or cargo data. e enable the identification of radiological isotopes in a container. And we enable actionable intelligence and force multiplication through command and control systems , such as 1thena for maritime and 2order
;iew for land borders. e are growing our border security business in three ways< 2y focusing our abilities on the unsolved problems in border security4 2y pac!aging more of our solutions for lower cost repeatability and a one"to" many commercial business model4 and 2y growing our international business. e recogni#e that it is the operators, those who have lived the challenges of securing our nations borders, who are the e+perts in the principles, strategies and tactics of their missions, but we also understand that they dont always have the best and most recent information and awareness regarding the technological (art of the possible.) Scientists and engineers invent, design and

create the -art of the possible,. yet they are constantly see$ing a greater understanding of the mission re!uirements so that they might develop and deploy the right tools more !uic$ly to ma$e the /ob of the operator safer and more effective.+ 'n order to close these -$nowledge gaps. as !uic$ly as possible, &aytheon has brought together e0perts from the operational environment and /oined them with our scientists and engineers. e are improving our connectivity and

information"sharing efforts with the men and women (on the line,) and we are see!ing to continue to open new opportunities for dialogue. Our commitment is to improving our own understanding of real"world mission re$uirements while simultaneously informing, educating and updating operators on e+isting and developing capabilities. e do not assume that technology is the starting point, or even the final answer to meeting the re$uirements of a border security mission, particularly in a country that may be 9ust beginning the process of developing a border security force. 2order security, in the domestic or international mar!ets, re$uires a mi+ of capabilities that ta!e into account operational challenges, threats and the organi#ational maturity of agencies charged with the mission. hile certain solutions may include tactical infrastructure such as fences and roads, a trained and well"e$uipped wor!force, facilities, vehicles, intelligence and technology, in the end our 9ob is to partner with the customer to determine the best mi+ of these capabilities and to facilitate the deployment of that mi+ to achieve mission success. 'n the future, you will see us bring to mar!et more solutions precisely fitted to the operational constraints of border security agents * solutions intended to enable them to reconcile sometimes contradictory ob9ectives, such as moving passenger vehicles through a port of entry in seconds while scanning every vehicle for hidden personnel and contraband. Raytheon obviously recogni#es the importance of events such as the 2order .ecurity =+po, to be held this year 1pril 6> and 69 in 8hoeni+, with Raytheon serving as corporate event sponsor. %ow can functions such as the 2order .ecurity =+po play a role in bringing together the efforts of public and private sector& ,he 2order .ecurity =+po in 8hoeni+ is an outstanding e+ample of an opportunity for border security agencies and industry to communicate and learn from one another. ' believe the !ey to the real success of these types of events is open dialogue that goes beyond the formal speeches and seminars and opens informal opportunities for industry and government to (compare notes.) 1t the upcoming event, ' would encourage industry to have its engineers and scientists attend along with their business development teams. ,he engineers and scientists will benefit from listening to the government agency representatives e+plain their missions, strategies, tactics and challenges, and they should see! opportunities to as! direct $uestions about operational re$uirements and what the operators believe they need to accomplish their goals. ?re$uently, when $uestioned about functional needs, an operator may indicate he or she wants a particular tool, but when an open dialogue uncovers the underlying operational re$uirement behind the re$uested tool, engineers are 9ust as fre$uently able to offer superior suggestions based on new capabilities. ,his usually results in an e+change of ideas that leaves both parties better informed and more li!ely to develop and deploy the right tools for the 9ob. ' would also encourage government and agency representatives in attendance to stay beyond the limits of their specific assignment or speeches, visit e+hibits and ma!e themselves available for informal conversations. ' encourage agencies, to the degree possible within their operational constraints, to send some of their field operators to the events in addition to the agency leadership. hen visiting the display booths, operators shouldnt feel that they have to simply pass through the vendor booths and loo! at the products on display. ,hey should as! industry representatives to provide views of what is on the hori#on, and they should feel encouraged to suggest changes or adaptations to e+isting products to meet specific mission needs. 1gain, its about discovering the art of the possible. 't has definitely been a privilege to have this

opportunity to chat with you, and ' loo! forward to seeing you in 1pril in 8hoeni+. 's there anything else you would li!e readers of @aritime A 2order .ecurity 0ews to !now concerning your views on the topics weve discussed& Bust that ' feel honored to have the opportunity to wor! in an industry that was built upon defending and protecting 1merica. '#ve had

the opportunity throughout my career to wor$ with some of the finest and most dedicated people in the world in the public service as well as private sectors. ' believe that serving and protecting
our country and its people is an honorable and e+citing mission, and 'm energi#ed every day by the possibility that what we are doing will save lives and will protect our way of life.