Demand for development finance as a key complement to traditional aid is growing, but despite the impressive strength of the US private sector, the US government’s ability to respond—to date— has fallen short. The good news: Congress got the memo.
CGD Policy Blogs
The Trump administration delivered its FY 2019 budget request to Capitol Hill this week. Containing deep cuts to the international affairs budget, it looks a lot like a repeat of the FY 2018 request. And with a 30 percent reduction in topline spending, few programs were spared. Meanwhile, buried among the rubble are smart reform ideas that run the risk of being overshadowed—or even undermined—by the depth of the proposed spending reductions.
In recent months, USAID has been working diligently to craft its approach to “strategic transitions,” framing the principles it will follow, the benchmarks that will help inform transition decisions, and the programs and tools it can bring to bear. This Thursday, in a public discussion with the agency’s Advisory Committee on Voluntary Foreign Aid (ACVFA), USAID will outline its initial thinking about strategic transitions. Our recent paper, Working Itself Out of a Job: USAID and Smart Strategic Transitions, offers some advice to the agency as it charts the course ahead. Here are the main takeaways.
This week, the White House unveiled the first National Security Strategy of the Trump administration. As always, we were eager to see how the strategy considered the role of development. While there’s a lot to unpack in the 68-page document, here are few things that caught our eye.
The US Department of the Interior announced last week that the United States would no longer seek to comply with the Extractive Industries Transparency Initiative (EITI), an international multi-stakeholder organization that aims to increase revenue transparency and accountability in natural resource extraction. The move—while disappointing—is not altogether unexpected. And sadly, it will put the United States further behind the curve when it comes to corporate transparency.
The very same week that USAID and the Department of State submitted a joint redesign plan to the Office of Management and Budget, the coauthors of four recent reform proposals packed the CGD stage for a timely debate. Fragmentation, inclusive economic growth, humanitarian assistance and fragile states, global health, and country graduation were a few of the big questions that panel members grappled with as they authored their reports.
Ambassador Mark Green—President Trump’s pick to lead the US Agency for International Development (USAID)—is slated to appear before the Senate Foreign Relations Committee for his nomination hearing on Thursday morning. Drawing on themes of efficiency, effectiveness, accountability, and results, here are a few questions we’d pose to Ambassador Green (and a few of the things we’d love to hear in response).
Secretary of State Rex Tillerson is likely to face some tough critics when he heads to Capitol Hill this week. In his first appearance(s) before Congress since his January confirmation hearing, Secretary Tillerson will have the unenviable task of defending a deeply unpopular FY2018 budget request for international affairs.
The White House delivered an FY2018 budget request, featuring deep spending reductions, to a less-than-receptive Congress early last week. In a series of blog posts, CGD experts sounded off on the proposed cuts to foreign aid and the philosophy that seems to guide them—including the administration’s plans to shutter the Overseas Private Investment Corporation, continued support for the Millennium Challenge Corporation, and the merits and potential downsides of a proposal to shift some security assistance from grants to loans.
The full budget features a 32 percent cut to topline funding for the Department of State and Foreign Operations, leaving few programs that would completely escape the axe. It’s hard to read this as a good deal for anyone.