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This is an archived USAID document retained on this web site as a matter of public record.

In this section:
White Paper Marked New Policy for Effective, Flexible Aid


White Paper Marked New Policy for Effective, Flexible Aid

Comprehensive policy change is taking root at USAID at the beginning of President Bush’s second term, following careful cultivation during the first term.

The new Agency-wide Policy Framework for Bilateral Foreign Aid is expected to be issued soon, codifying the White Paper distributed in January 2004. The White Paper is a concise presentation of goals and principles flowing in part from the 2003 report, Foreign Aid in the National Interest, and a proposed USAID response.

Foreign Aid in the National Interest takes a long view in examining the critical link between national security and foreign assistance. It lays out the scope and nature of major development challenges America faces in the next 10–20 years. The report was written primarily by leading development scholars and academics outside USAID.

  • The new USAID policy, like the White Paper, sets five distinct operational goals for foreign assistance. All five goals do not apply to every country. A country receiving disaster assistance, for example, may not be receiving aid to support reform. The five goals are

  • promote transformational development in reasonably stable countries, characterized by fundamental changes in governance, economic structure, and human capacity

  • strengthen fragile states by supporting reform and stabilization

  • support geopolitical interests through aid programs in countries of high strategic importance

  • provide humanitarian relief to meet immediate human needs in countries afflicted by natural disaster, violent conflict, political crisis, or persistent dire poverty

  • address global issues and other special concerns, such as HIV/AIDS and support for U.S. trade agreements

Aid effectiveness will now be judged against one of these discrete objectives—not, as in the past, on general development criteria. This is particularly significant when the aid is provided for nondevelopmental purposes.
USAID has already taken many important steps to implement the White Paper goals, even before formal issuance of the policy paper.

USAID is promoting transformational development by recommending higher levels of assistance for better performers and making greater use of the Transition Initiatives account to address fragility.

The reformed strategic management process builds in White Paper goals and principles. Regional and other planning frameworks are now being developed according to the White Paper’s five goals. An Agency strategy for fragile states was issued earlier this year, elaborating on one of the core goals of the White Paper.

At the High Level Forum on Aid Effectiveness in Paris March 2, Administrator Andrew S. Natsios briefed developing and donor country ministers and heads of multilateral organizations on the Fragile States Strategy.

A key principle emphasized was selectivity: choosing countries where the Agency can best make a difference. Another was flexibility: moving personnel and resources rapidly when an opportunity for selective action arises. “The speed with which you react has a lot to do with whether or not you can prevent chaos,” said Natsios.

The successful USAID response to the South Asian tsunami fit well with the White Paper’s goals and guiding principles for humanitarian aid. The U.S. investment in humanitarian assistance capabilities made it possible to respond effectively and avert widespread disease that some forecasters had feared would add thousands to the already large number of deaths.

The cooperation between USAID and the USS Abraham Lincoln naval task force fulfilled another guiding principle of the White Paper: coordination among U.S. agencies. Another key principle pursued effectively was the emphasis on supporting local capabilities to respond to disasters.

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