Susan B. Epstein
Specialist in Foreign Policy
Several development proponents, nongovernmental organizations (NGOs), and policymakers have pressed Congress to reform U.S. foreign aid capabilities to better address 21st century development needs and national security challenges. Over the past 50 years, the legislative foundation for U.S. foreign aid has evolved largely by amending the Foreign Assistance Act of 1961 (P.L. 87-195), the primary statutory basis for U.S. foreign aid programs, and enacting separate freestanding laws to reflect specific U.S. foreign policy interests. Many describe U.S. aid programs as fragmented, cumbersome, and not finely tuned to address overseas needs or U.S. national security interests. Lack of a comprehensive congressional reauthorization of foreign aid for half of those 50 years compounds the perceived weakness of U.S. aid programs and statutes.
The structure of U.S. foreign aid entities, as well as implementation and follow-up monitoring of the effectiveness of aid programs, have come under increasing scrutiny in recent years. Criticisms include a lack of focus and coherence overall; too many agencies involved in delivering aid with inadequate coordination or leadership; lack of flexibility, responsiveness, and transparency of aid programs; and a perceived lack of progress in some countries that have been aid recipients for decades. Over the last decade a number of observers have expressed a growing concern about the increasing involvement of the Department of Defense in foreign aid activities. At issue, too, has been whether the U.S. Agency for International Development (USAID) or the Department of State should be designated as the lead agency in delivering, monitoring, and assessing aid, and what the relationship between the two should be.
The Obama Administration, led by Secretary of State Hillary Clinton, Secretary of Defense Robert M. Gates, and USAID Administrator Rajiv Shah, announced action to seek solutions to the problems associated with foreign aid and begin the process of reform. Secretary Clinton announced in July 2009 that the Department of State would conduct a Quadrennial Diplomacy and Development Review (QDDR) to address issues involving State Department and USAID capabilities and resources to meet 21st century demands. In September 2010, the President signed a Presidential Study Directive (PSD) on U.S. Global Development Policy to address overarching government department and agency issues regarding foreign aid activities and coordination. Secretary Clinton presented the QDDR report in December 2010.
Foreign aid reform was a key area of focus throughout the 111th Congress, although no comprehensive reform legislation was enacted. Representative Berman, then-chairman of the House Foreign Affairs Committee (HFAC) in the 111th Congress, stated on the committee website in 2009 and 2010 how foreign assistance reform was a top priority. In 2009, he introduced H.R. 2139, Initiating Foreign Assistance Reform Act of 2009. Between July 2009 and May 2010, Chairman Berman released several discussion papers on foreign aid reform, as well as a discussion draft of the first 55 pages of possible foreign aid reform legislation.
In the Senate, Senator Kerry, chairman of the Senate Foreign Relations Committee (SFRC), Senator Lugar, ranking minority member, and others introduced a reform bill, S. 1524, the Foreign Assistance Revitalization and Accountability Act of 2009. The Senate did not consider H.R. 2410, the House-passed Foreign Relations Authorization Act of 2010 and 2011 requiring a national strategy for development and a quadrennial review of diplomacy and development.
Foreign aid reform may continue to be a concern in the 112th Congress. This report addresses aid reform through early 2011 and will not be updated.
Date of Report: February 15, 2011
Number of Pages: 16
Order Number: R41173
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
Specialist in Foreign Policy
Several development proponents, nongovernmental organizations (NGOs), and policymakers have pressed Congress to reform U.S. foreign aid capabilities to better address 21st century development needs and national security challenges. Over the past 50 years, the legislative foundation for U.S. foreign aid has evolved largely by amending the Foreign Assistance Act of 1961 (P.L. 87-195), the primary statutory basis for U.S. foreign aid programs, and enacting separate freestanding laws to reflect specific U.S. foreign policy interests. Many describe U.S. aid programs as fragmented, cumbersome, and not finely tuned to address overseas needs or U.S. national security interests. Lack of a comprehensive congressional reauthorization of foreign aid for half of those 50 years compounds the perceived weakness of U.S. aid programs and statutes.
The structure of U.S. foreign aid entities, as well as implementation and follow-up monitoring of the effectiveness of aid programs, have come under increasing scrutiny in recent years. Criticisms include a lack of focus and coherence overall; too many agencies involved in delivering aid with inadequate coordination or leadership; lack of flexibility, responsiveness, and transparency of aid programs; and a perceived lack of progress in some countries that have been aid recipients for decades. Over the last decade a number of observers have expressed a growing concern about the increasing involvement of the Department of Defense in foreign aid activities. At issue, too, has been whether the U.S. Agency for International Development (USAID) or the Department of State should be designated as the lead agency in delivering, monitoring, and assessing aid, and what the relationship between the two should be.
The Obama Administration, led by Secretary of State Hillary Clinton, Secretary of Defense Robert M. Gates, and USAID Administrator Rajiv Shah, announced action to seek solutions to the problems associated with foreign aid and begin the process of reform. Secretary Clinton announced in July 2009 that the Department of State would conduct a Quadrennial Diplomacy and Development Review (QDDR) to address issues involving State Department and USAID capabilities and resources to meet 21st century demands. In September 2010, the President signed a Presidential Study Directive (PSD) on U.S. Global Development Policy to address overarching government department and agency issues regarding foreign aid activities and coordination. Secretary Clinton presented the QDDR report in December 2010.
Foreign aid reform was a key area of focus throughout the 111th Congress, although no comprehensive reform legislation was enacted. Representative Berman, then-chairman of the House Foreign Affairs Committee (HFAC) in the 111th Congress, stated on the committee website in 2009 and 2010 how foreign assistance reform was a top priority. In 2009, he introduced H.R. 2139, Initiating Foreign Assistance Reform Act of 2009. Between July 2009 and May 2010, Chairman Berman released several discussion papers on foreign aid reform, as well as a discussion draft of the first 55 pages of possible foreign aid reform legislation.
In the Senate, Senator Kerry, chairman of the Senate Foreign Relations Committee (SFRC), Senator Lugar, ranking minority member, and others introduced a reform bill, S. 1524, the Foreign Assistance Revitalization and Accountability Act of 2009. The Senate did not consider H.R. 2410, the House-passed Foreign Relations Authorization Act of 2010 and 2011 requiring a national strategy for development and a quadrennial review of diplomacy and development.
Foreign aid reform may continue to be a concern in the 112th Congress. This report addresses aid reform through early 2011 and will not be updated.
Date of Report: February 15, 2011
Number of Pages: 16
Order Number: R41173
Price: $29.95
Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports
Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.
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