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Beyond Assistance: the HELP Commission Report on Foreign BEYOND ASSISTANCE THE HELP COMMISSION REPO rt ON FO R EIGN ASSIS ta N C E RE F O R M Helping to Enhance the Livelihood of People around the Globe Congresswoman Jennifer Dunn, who wanted America to be known not just for its strength, but for its compassion, was an invaluable member of the HELP Commission for twenty months. Jennifer’s grace distinguished and defined her life; she honored our Commission with her friendship and her service; and our report is dedicated to her memory. Members of the HELP Commission, and How They Voted The Commission approved the following report by a vote of 19 to 1. Commissioners Voting in the Affirmative: The Honorable Mary K. Bush, Chairman The Honorable Dr. Carol C. Adelman, Vice Chairman Leo Hindery, Jr., Vice Chairman Steven K. Berry, Esq. Jerome F. Climer Dr. Nicholas N. Eberstadt Glenn E. Estess, Sr. Lynn C. Fritz Benjamin K. Homan The Honorable Walter H. Kansteiner III Thomas C. Kleine, Esq. William C. Lane C. Payne Lucas Dr. Martin L. LaVor The Honorable Robert H. Michel Eric G. Postel Gayle E. Smith David A. Williams Alonzo L. Fulgham, Representative of the USAID Administrator Commissioners Opposing: Dr. Jeffrey D. Sachs 3 Table of Contents EXECUTIVE SUMMARY .............................................................................................. 7 FINDINGS..............................................................................................................................................9 The world has changed and U.S. assistance programs have not kept pace..............................................9 Foreign assistance alone is not sufficient to help developing countries achieve long-term, sustainable economic growth. ................................................................................................................................10 Long-term economic growth and job creation contribute the most to sustainable development.................10 We need a clear and common vision for development across and throughout both branches of the United States Government.............................................................................................................................11 An integrated approach to our government’s development assistance is needed. .....................................11 We must play to our strengths and work with others...........................................................................11 RECOMMENDATIONS: THE NEED FOR CHANGE .......................................................................11 Rewrite the Foreign Assistance Act....................................................................................................12 Do more to help developing countries build vibrant private sectors........................................................12 Align America’s trade and development policies..................................................................................12 Strengthen the management capacity of our nation’s assistance agencies................................................13 Reorganize all U.S. international affairs functions. ............................................................................13 Determine funding from the bottom up, based on the needs and commitment of developing countries and on the national and security interests of the United States. ..................................................................14 CHAPTER 1: INTRODUCTION .................................................................................16 CHAPTER 2: APPLY A NEW INTEGRATED APPROACH TO DEVELOPMENT21 2.1 SUPPORT TRADE AND INFRASTRUCTURE...............................................................................22 2.1-1 Offer Duty-Free, Quota-Free Access to More Countries...........................................................22 2.1-2 Consider the Adverse Effects of Agricultural Subsidies.............................................................24 2.1-3 Remove Physical Trade Barriers with Infrastructure .................................................................25 2.2 ENSURE COORDINATION BETWEEN SECURITY AND DEVELOPMENT.............................26 2.2-1 Be Prepared to Respond to Failed and Failing States ...............................................................27 2.2-2 Respond to the Increasing Role of the Department of Defense....................................................27 2.3 EXPAND PUBLIC DIPLOMACY ..................................................................................................29 2.4 EXTEND THE INTEGRATED APPROACH TO THE LEGISLATIVE BRANCH AND INCLUDE PRIVATE STAKEHOLDERS................................................................................................................32 CHAPTER 3: FORGE A NEW EXECUTIVE/LEGISLATIVE RELATIONSHIP .34 3.1 REWRITE THE FOREIGN ASSISTANCE ACT ............................................................................34 3.2 RE-ENGAGE THE AUTHORIZING BODIES..............................................................................35 3.3 ADOPT COMMON PROCEDURES ..............................................................................................36 3.5 CREATE TWO RAPID-RESPONSE FUNDS: A HUMANITARIAN CRISIS FUND AND A TRANSITIONAL SECURITY CRISIS FUND .......................................................................................38 3.6-1 Improve Budget Processes..........................................................................................................40 4.1 INCREASE THE NUMBER OF U.S. DIRECT-HIRE EMPLOYEES............................................42 4.2 LENGTHEN OVERSEAS POSTINGS AND IMPROVE TRAINING............................................44 4.3 ELIMINATE THE REQUIREMENT FOR A SEPARATE OPERATING EXPENSE (OE) ACCOUNT............................................................................................................................................46 4.4 REFORM PROCUREMENT AND GRANT FUNCTIONS.............................................................47 4 CHAPTER 5: CREATE A NEW BUSINESS MODEL FOR GROWTH TO CAPITALIZE ON WHAT THE U.S. DOES BEST .................................................... 52 5.1 CORE PRINCIPLES OF THE NEW BUSINESS MODEL.............................................................52 5.1-1 Principle 1: Understand that Development Must Be Locally Led and Owned .........................52 Development assistance is by its nature cooperative and is most effective when undertaken as a partnership between the donor and the recipient. The United States cannot force a country to develop; at best, our nation can help identify and remove external obstacles to growth and encourage national and local leaders to take the necessary steps for change. ..............................................................................52 5.1-2 Principle 2: Acknowledge the Importance of Private Partners...................................................53 5.1-3 Principle 3: Embrace Risk and Innovation .............................................................................54 5.1-4 Principle 4: Increase Flexibility...............................................................................................55 5.1-5 Principle 5: Reward Graduation.............................................................................................55 5.1-6 Principle 6: Focus on Programs that Will Lead to Economic Growth .....................................56 5.1-7 Principle 7: Concentrate on Results and Improve Monitoring and Evaluation..........................57 5.1-8 Principle 8: Support the Promotion of Democratic Principles and Recognize that Good Governance and Accountable Leaders Advance Development .............................................................57 5.2 APPLYING OUR PRINCIPLES IN RECOMMENDATIONS .........................................................58 5.2-1 Create an Initiative to Support Small and Medium Enterprises ...............................................59 5.2-2 Create an Institute to Support Technology Research..................................................................60 5.2-3 Increase Local Purchases of Food Aid......................................................................................61 5.2-4 Engage the American People in Development Partnerships.......................................................62 5.2-5 Shore up Agricultural Development Programs ..........................................................................63 5.2-6 Encourage Education to Build Human Capital .......................................................................66 CHAPTER 6: CHANGE THE STRUCTURE............................................................ 68 6.1 RECOMMENDATIONS APPLICABLE TO ANY STRUCTURE....................................................69 6.1-1 Reduce the Number of Agencies Responsible for Development...................................................69 6.1-2 Rewrite the Foreign Assistance Act to Reflect Today’s World...................................................71 6.1-3 Improve Interagency Coordination.............................................................................................71 6.1-4 Link Authority and Accountability.........................................................................................71 6.1-5 Create a New Structure for Foreign Assistance Activities.........................................................72 6.2 THE COMMISSION’S OBJECTIVES FOR STRUCTURE..............................................................73 6.3 OPTIONS FOR STRUCTURE ........................................................................................................73
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