A Glimpse of President Trump’s Foreign Aid Policy So Far

President Donald Trump ran his presidential campaign with promises to put “America First” and prioritize the problems in the United States before concerning himself with the issues in other countries. Thus far, over a year into his presidency, President Trump’s administration has materialized campaign promises into actions, which they believe work towards achieving their goal of “Making America Great Again.” On multiple occasions, these actions have threatened the security and influence of U.S. foreign aid and development assistance.

The Administration has taken steps to reduce the size and scale of aid programs like The United States Agency for International Development (USAID) and has also threatened to withhold aid to long-term recipient countries. Countries that receive U.S. aid use the resources they’ve been given for a wide number of projects, but the majority of them focus on poverty-alleviation efforts and development assistance. There are still at least two years left in the Presidency of Donald Trump, but here is a recap of major decisions regarding President Trump’s foreign aid policy during the first half of his administration.

2017

May 10, 2017– President Trump nominates Mark Green as the new USAID administrator. Mark Green received bipartisan support in his nomination as he has often sought to foster bipartisan approaches to U.S. foreign assistance. Green served as the former US Ambassador to Tanzania, and before that, he was acting president of The International Republican Institute.  

May 23, 2017– The White House released its 2018 budget proposal: “America First: A Budget Blueprint to Make America Great Again.” The budget put forth by The Trump Administration requested a 33 percent reduction in funding for The State Department and USAID. The budget proposal also intimated plans to merge The State Department and USAID in order to “pursue greater efficiencies through reorganization and consolidation.”

October 2017– There were 97 applicants, already in the pre-employment process with USAID, who were denied foreign placement due to a hiring freeze imposed on the program by Secretary of State Rex Tillerson. Tillerson defended the hiring freeze arguing that it helped, “increase efficiency.”

Dec 20, 2017– President Trump threatened to cut off U.S. aid to any member of The U.N. General Assembly who votes for a resolution condemning his decision to recognize Jerusalem as the capital of Israel. President Trump delivered his threat at a cabinet meeting following a letter sent to the U.N. General Assembly by U.S. Ambassador to The United Nations Nikki R. Haley, in which she warned that the U.S. would note the countries who voted for the resolution. Regardless of the threats made by President Trump, a large number of countries in The U.N. General Assembly still voted not to pursue diplomatic missions in the city of Jerusalem in order to avoid exacerbating existing conflicts between Israel and Palestine. 

2018

Jan 2018– The Trump Administration announced its plans to withhold the majority of U.S. aid to Pakistan. The White House cited the Pakistani government’s unwillingness to aggressively confront international terrorists and militant groups in their region as the reason behind the withholding of aid.

Jan 2018– President Trump ordered some $65 million to be withheld from The United Nations Relief and Works Agency (UNRWA). UNRWA provides humanitarian and development assistance to Palestinian refugees. The President ordered the withholding of funds noting concerns over how the organization was run.

Feb 12, 2018– The White House released its 2019 budget proposal: “An American Budget.” The proposal furthers it’s 2017 stance on The State Department and USAID requesting a 26 percent reduction of funds for the programs. The budget revealed a continuing trend in President Trump’s foreign policy to shrink the size of The State Department.

Each new president has their own understanding of the role that foreign aid plays in the advancement of American interests in the international community. President Trump’s foreign aid policy has revealed to America his hesitation to support the distribution of American resources to developing/emerging international markets. The President has emphasized his opinion that more efficient work can be done to improve America by investing more in domestic relief projects and less in international ones.

– Clarke Hallum
Photo: Flickr

10 MCC Transparency Measures

Created by the U.S. Congress in 2004, the Millennium Challenge Corporation (MCC) is an independent U.S. foreign aid agency. The agency has strong bipartisan support and helped revolutionize how the U.S. delivers foreign assistance.

MCC works by giving out time-limited grants to partnering countries, which broadly go toward “promoting economic growth, reducing poverty, and strengthening institutions.” But for each of its compacts and programs, MCC specifically reports what is being spent where, by whom and with what results. In other words, MCC is dedicated to transparency.

10 Ways MCC Maintains Transparency

1. Maintaining an easy-to-use and up-to-date website: An easy-to-use website makes it easier for the public or other agencies to navigate the site. An up-to-date website ensures that people are accessing and consuming new and relevant data.
2. Expanding the Evaluation Catalogue: The Evaluation Catalogue shares studies, evaluations and data sets in a searchable database that is open for public consumption. MCC is working to increase the efficiency of the accompanying approval process and release information to the catalogue more quickly.
3. Releasing Principles into Practice: Principles into Practice is a long-running series of reports in which MCC discusses in detail how it implements its core model and operation policies. These reports include frank discussions of failures and lessons MCC has learned. The agency also has an edition dedicated to MCC transparency.
4. Using sub-national data and geo-coding: Gathering more detailed and location-specific data provides a better picture of MCC’s spending and results. Location-specific data can also help MCC compare data from different areas and increase its efficiency.
5. Upgrading information management systems: Updated information management systems help MCC improve the accessibility and usability of its data internally and in partner countries. MCC also funds an analytics team to standardize and deliver data to staff for internal analysis.
6. Having a Data Governance Board: MCC recently created its Data Governance Board, an independent group made up of representatives from throughout the agency. The Board’s purpose is to streamline MCC’s data management approach and promote data-driven decision making across the agency’s investment portfolio.
7. Ensuring data consistency: MCC pulls all of its data sets from the same base data, ensuring consistency across data sets. Consistency allows MCC and anyone else to compare data sets without having to control for differences in collection or calculation.
8. Adding new data and information fields: MCC has expanded its data fields relating to results, and the agency gets higher marks from the International Aid Transparency Initiative (IATI) for performance data than any other agency. MCC has also expanded its information to include conditions associated with MCC funds. MCC is very invested in data collection and uses it to inform program development processes, such as pricing data.
9. Working with implementing organizations to compile data: Like most U.S. aid agencies, MCC’s programs provide funds for projects that are implemented on the ground by partner organizations. MCC works directly with those implementing its projects to collect and publish data.
10. Reporting directly to IATI: Like other U.S. aid agencies, MCC used to report its data through the Department of State. Now, MCC reports directly to IATI, giving MCC greater control over what, how and when they publish.

ATI and MCC Transparency

Transparent aid is especially important to donor and recipient governments. For example, MCC transparency ensures that it and other donors avoid duplicating efforts in some areas and under-funding in others. Recipient governments also need to know what aid is invested in their countries to coordinate their own budgets with incoming aid and make the most effective use of their limited money.

MCC began participating in the Aid Transparency Index (ATI) in 2013 and was actually ranked the most transparent agency in the world its first year. Rankings consistently change between years, and while MCC has not remained number one, the agency is consistently among the top five transparent agencies in the world.

MCC was once again ranked as the most transparent agency in the U.S. Government for 2018. Ranked fifth overall in the world, MCC is one of only seven agencies in the top “Very Good” category. Transparency is essential for aid effectiveness and accountability, and MCC’s ranking shows that the agency is committed to disclosing detailed material about its activities.

– Kathryn Quelle
Photo: Flickr

How the US Benefits from Foreign Aid to Azerbaijan

Since its formation in 1992, Azerbaijan has had positive diplomatic relations with the United States. The U.S. has affirmed its commitment to strengthening democracy in the region, as well as diversifying the economy and promoting regional stability. In 2017, the United States’ government gave $15.31 million in foreign assistance to Azerbaijan.

Over $4 million of that contribution went towards democracy, human rights and governance agendas. Another $3.63 million went towards economic development. Here are the four major ways in which the U.S. benefits from foreign aid to Azerbaijan.

Positive U.S.-Azerbaijan Relations Support American Jobs

Azerbaijan purchases American services. In 2010, Azerbaijan signed a $1 billion contract purchasing eight civilian airplanes from the American Boeing company; this contract supported 11,000 American jobs.

That same year, seeking to create its first communication satellite, Azerbaijan signed another contract with the Orbital Sciences Corporation in Virginia. The $205.3 million contract created 1,500 American jobs.

U.S. Companies’ Substantial Stakes in Azerbaijan Economy

Azerbaijan has welcomed U.S. investment in its economy. The Law on Protection of Foreign Investments allows for foreigners to directly invest in any activity of the Azerbaijan economy in which a national investor may also invest.

U.S. companies quickly capitalized on this opportunity. Many have long-standing investments in offshore oil development projects; however, experts predict a decline in this industry.

As a result, several U.S. companies are investing in other fields of the Azerbaijan economy such as agriculture, telecommunications, tourism and transportation services. The U.S. also regularly exports aircraft and heavy machinery to the region.

Azerbaijan: Useful Ally in Combating Terrorism

Azerbaijan has a confirmed commitment to combating terrorism. The country is a member of several international organizations such as the Organization for Security and Cooperation in Europe, and the Organization for Islamic Cooperation. The collaborative work of Azerbaijan’s State Security Forces and the Foreign Intelligence Service have made sizeable contributions to the international community’s efforts to combat terrorism.

Furthermore, as a member of the Council of Europe’s Committee of Experts on the Evaluation of Anti-Money Laundering Measures and the Financing of Terrorism (MONEYVAL), Azerbaijan has also taken steps to deter money laundering schemes that could finance terrorism.

Given this commitment, positive relations with Azerbaijan could help advance U.S. security goals in the region.

Successful Market Democracy Could Provide a Model for the Region

The primary objective of USAID contributions in Azerbaijan is “to support Azerbaijan’s reform processes by promoting competition and pluralism in the society, laying the foundations for a sustainable market-based democracy.”

As a Muslim-majority country with a history of religious tolerance, Azerbaijan could be a model for countries in the region. Azerbaijan shares a border with both Russia and Iran. If Azerbaijan can successfully become a market economy, perhaps it can provide a model for similar countries in the region.

How the U.S. Benefits From Foreign Aid To Azerbaijan

By providing aid to the Azerbaijan people, the United States is ensuring the continued economic and security cooperation with a proven ally. Though often overlooked by popular U.S. media, Azerbaijan’s development has a notable effect on the American people.

– Joanna Dooley
Photo: Flickr

How the US Benefits from Foreign Aid to Moldova

The U.S. government has invested over 1 billion dollars in Moldova since 1992 through various foreign aid assistance programs. In times where many Americans think that the government should concentrate on domestic aid, it is important that they should be informed about how the U.S. benefits from foreign aid to Moldova. So, how is the aid America invests in Moldova promoting American interest?

The Economic Benefits

Foreign aid is often characterized as an investment because it typically brings a return for the American people. This is especially true in the case of American businesses. In Moldova, the poorest country in Europe, the logic of foreign aid applies perfectly.

The stated goal of U.S. foreign aid to Moldova is to “target assistance at the country’s most promising economic sectors; which will help create economic opportunities that will raise incomes, promote job growth, and improve living standards.” By improving the economy and living standards, the foreign aid investments will then create a new market for American goods, demonstrating the mutual benefit for Moldova and the United States.

When the U.S. government provides aid for an impoverished country, the country’s economy improves, and typically so do the lives of its people. With this improved quality of life, citizens of the country are transformed from targets of charity to consumers with purchasing power. Instead of barely surviving, they become productive members of society, which results in new markets for U.S. companies. Not only does this create more potential customers for U.S. companies, but the increased demand for American made goods can create jobs in the U.S. to create these goods.

USAid in Moldova

USAID, America’s primary foreign aid agency, plays an important role in connecting American businesses directly with these new consumers in developing markets. USAID accomplishes this by encouraging American companies to partner with local people to help educate and support them on projects in local areas.

The result is the creation of a mutually beneficial relationship, whereby the target of the aid becomes self-reliant and also aligned with U.S. companies. In this way, the U.S. benefits from foreign aid to Moldova as well as Moldova itself.

Furthermore, the U.S. Embassy in Moldova implements programs such as The Cultural/English-Language Small Grants Program, to use education and cultural exchange to help foster mutual understanding between the United States and Moldova. It is the hope that this mutual understanding will lay the foundation for further economic, cultural, and political cooperation between the two countries.

National and International Security

Another common argument in favor of foreign aid is that this assistance helps stabilize vulnerable countries. This lowers the probability of future conflict and, as a result, keeps Americans safe. Syria is the most evident example of what can happen when a country becomes unstable. After the country experienced a drought in 2007, the resulting destabilization and actions by a repressive regime created the terrible crisis we see today.

This is the very reason that the U.S. foreign aid to Moldova targets economic growth in Moldova’s unstable agricultural industry as well as the consolidation of democratic institutions. If there were a slowdown in Moldova’s agricultural industry, which accounts for approximately 17 percent of its GDP, or a crackdown on democracy, the resulting destabilization could be problematic, especially given Moldova’s proximity to Russia.

Therefore, the U.S. benefits from foreign aid to Moldova by helping to minimize the risk of breakdowns in the critical areas of Moldovan society, which helps ensure stability, economic opportunity and pro-American sentiment in an otherwise vulnerable country.

– Taylor Pace

Photo: Flickr

Three Ways Countries Could Make Foreign Aid More Effective

A highly contentious issue, the effectiveness of U.S. foreign aid has long been the subject of debate among congressmen and concerned citizens alike. From how much money is allocated to recipient nations to the impact that aid actually has on issues such as poverty and civil war, advocates and critics of foreign aid point to various criteria to evaluate the merits, or lack thereof, of continued U.S. aid.

The Case for Aid

Proponents of foreign aid insist programs are instrumental in fostering socioeconomic growth, reducing poverty and improving the overall quality of life. There are certainly examples that support this notion. USAID-funded programs have significantly reduced maternal and child mortality, helping at least 4.6 million children and 200,000 mothers, according to agency officials. As of 2015, more than 7.6 million people had received improved access to drinking water and more than 4.3 million people had improved sanitation. Furthermore, 41.6 million children saw improved reading instruction and safer learning environments between 2011 and 2015.

Foreign Aid Skepticism

Yet critics of aid remain steadfast in their opposition, pointing to fraud and corruption, lack of transparency, foreign aid dependency and general ineffectiveness as indicators. Around $1.17 billion in aid that was given to Malawi in 2012 was exploited by corrupt politicians and businessmen. At least $30 million was taken from the treasury and robbed from the 17 million poor and AIDS-ravaged inhabitants. In fact, these sentiments are so strong that, according to ABC News-Washington Post polls, “the only possible federal spending cut a majority favored was for foreign aid.”

Clearly, there are two sides to the story when it comes to foreign aid. When allocated and distributed properly, it can work wonders for the world’s poor and developing countries. However, corruption and misuse still stand in the way of much of its potential. These issues can be addressed by exploring various ways of making foreign aid more effective.

Making Foreign Aid More Effective

There are three important ways that countries around the globe can make foreign aid more effective.

1. Improving Aid Quality: By dividing foreign aid into smaller projects, donor countries can control the volatility and lack of predictability of aid, thus significantly decreasing the deadweight loss of development assistance. In 2008 alone, deadweight losses from official aid amounted to $7 billion. Smaller projects, according to Brookings, can lead to further innovation and scaling up, thus offsetting deadweight losses.
   
2. Linkage: In order for foreign aid to maximize its impacts in a developing country, it must be linked to other important development policies, namely trade, investment and migration. For example, in Haiti and Pakistan, countries in which the U.S. has a significant economic stake, trade restrictions on textile and garment imports prevent further growth.
3. Mobilizing the Private Sector: It is generally accepted that in order to foster economic growth and development, countries must turn to the private sector. Unfortunately, foreign aid has yet to reflect that sentiment. In fact, much of it is still directed toward the public sector. Cities harbor the most economic growth yet receive only $1 to $2 billion in aid a year. Approximately one billion slum dwellers reside in the city centers of developing countries and represent the key to mobilizing economic growth.

At the end of the day, foreign aid aims to foster social and economic growth in developing countries by enfranchising governments, health care systems, education institutions and infrastructure. Consequently, growth in these developing nations helps developed nations by opening up new markets and increasing stability. When confronted with corruption or misuse or any of the other criticisms of foreign aid, governments should not slash foreign aid budgets, but rather should apply these three crucial ways of making foreign aid more effective.

– McAfee Sheehan
Photo: Flickr