The United States is the single largest bilateral provider of foreign assistance, with a commitment to improving the quality of its aid to maximize development benefits. In 2005, the United States endorsed the Paris Declaration on Aid Effectiveness, which emphasizes the importance of partner country ownership, alignment of donor resources with partner country development priorities, harmonization of donor assistance, management for results, and increased accountability for development results.
The United States has implemented significant policy and operational changes to increase the effectiveness of its assistance. The major U.S. Government agencies managing foreign assistance have implemented changes centrally and in field offices to align with the Paris Declaration principles. The five principles of the Paris Declaration are: ownership, alignment, harmonization, managing for results, and mutual accountability.
The U.S. has significantly increased the amount of untied foreign assistance. Current estimates are that almost 65 percent of U.S. assistance was untied in 2006. The National Security Council coordinates Executive Branch departments and agencies in the effective implementation of national security policies. To increase synergies and reduce duplication, the United States has focused on improving the internal coherence of assistance programs managed by various government agencies.
The Policy Coordination Committee (PCC) for International Development under the National Security Council was established in 2001, chaired by the U.S. Secretary of State. The PCC convened an Interagency Working Group on Aid Effectiveness, subsequently named the “Sub-PCC on Aid Effectiveness.” Sub-PCC members include all the major U.S. Government agencies managing foreign assistance and other major international trade agencies.
The adoption of an Inter-agency Aid Effectiveness Action Plan in October 2007 maps the U.S. Government’s review and revision of policies and procedures in ways that are consistent with the Paris Declaration as well as with current U.S. laws and regulations. The Sub-PCC helps inform consistent government-wide policies on aid effectiveness issues. It coordinates under the mandate of the International Development PCC a pilot effort to harmonize assistance programs of all U.S. Government actors at the country level through a consolidated Country Assistance Strategy (CAS).
In early 2008, the U.S. Director of Foreign Assistance jointly signed, with Nordic Plus counterparts and the Millennium Challenge Corporation, the Potomac Statement on Aid Effectiveness, which reaffirms the commitment to the Paris Declaration principles, and recognizes the importance of government-wide approaches to tackling difficult development issues such as conflict, state fragility, and climate change. In 2007, the Office of U.S. Foreign Assistance developed a new Foreign Assistance Framework as an analytical tool aimed at targeting U.S. Government resources efficiently and effectively within countries.
The United States has implemented various initiatives to support the Paris Declaration principles. For example, the Millennium Challenge Corporation (MCC) has developed a compact development process in Moldova, which is a country-owned and led process. The MCC has also implemented a compact in Rwanda, which is a country-owned and country-led program. The U.S. Agency for International Development (USAID) has participated in Mozambique’s National Agricultural Development Program (PROAGRI), which is an example of alignment with partner country development priorities.
The U.S. Department of the Treasury has implemented a program in Zambia in support of financial systems reform, which is an example of harmonization of donor assistance. The U.S. Department of Defense has implemented a coordinated civilian-military response to the Asia Tsunami Disaster, which is an example of managing for results. The U.S. Department of State has implemented a program to strengthen governmental accountability in Azerbaijan, which is an example of mutual accountability.
The United States has also implemented various initiatives to improve the effectiveness of its foreign assistance. For example, the U.S. Agency for International Development (USAID) has improved monitoring and evaluation in Indonesia, which is an example of managing for results. USAID has also supported educational reform in Guatemala, which is an example of managing for results.
The United States has made significant progress in improving the effectiveness of its foreign assistance. The country has increased the amount of untied foreign assistance, implemented significant policy and operational changes, and developed various initiatives to support the Paris Declaration principles. The U.S. Government has also improved the internal coherence of assistance programs managed by various government agencies, and has developed a new Foreign Assistance Framework as an analytical tool aimed at targeting U.S. Government resources efficiently and effectively within countries.