U.S. foreign assistance under challenge

Recent administrations have deployed economic assistance in important and diverse ways. U.S. foreign economic and development policies are used to advance three core national interests—keeping America safe, growing American and global prosperity, and representing American values. Should the current balance between the three objectives be altered to reflect a changing world? Should the U.S. continue to exercise leadership on global development issues, and if so, how?

The administration’s budget not only calls for extreme budget cuts to international affairs, but also proposes to eliminate entire programs such as the development assistance account and climate change policies. It would substantially reduce funding for other programs, including U.N. peacekeeping. In what areas would budget cuts be most problematic for U.S. national interests? In what areas would budget cuts be feasible, or even beneficial? Are there alternative modes of financing that would mitigate the impact of budget cuts, such as moving from grants and subsidies to guarantees and loans?

All agencies must send an agency reorganization plan to the Office of Management and Budget in September that streamlines operations and reduces staffing. The administration is reported to be considering the merger of USAID into the State Department, and abolishing OPIC, USTDA, and USIP. Alternative proposals include consolidating economic assistance programs into a single development agency and creating a development finance bank. What are the pros and cons of merging the State Department and USAID? Are there structural changes that would make economic assistance programs more effective and coherent? What are the principles and objectives that should guide bureaucratic restructuring?

Security and development interests intersect in fragile states. Neither can be achieved without the other. It is estimated that by 2030, 80 percent of extreme global poverty will be in fragile states, from just 20 percent in 2005. How can we identify and address the root causes of fragility and sustain engagement over the long-term? Can we respect local ownership and local institutions when they are weak? If development, diplomacy, and defense each bring assets to the task, how can we break down silos and create a whole-of-government approach?

The United States was an organizer and charter member of many multilateral organizations, but now appears to be stepping back from its leadership role. The multilateral system is showing signs of stress. Are multilateral approaches and solutions relevant to current challenges? Is U.S. leadership of the existing multilateral development system needed, and is it important for U.S. national interests? How can the U.S. best advance multilateral reform to improve effectiveness?

Traditional U.S. global development leadership is challenged by the policies of an administration with an America First and a hard-power agenda. Public opinion is also divided on how large a role the U.S. should take abroad and if aid can be effective in solving complex global problems. What steps can be taken to ensure that budget and structural outcomes effectively advance U.S. development interests? What should an effective policy and communication strategy look like? What coalitions are needed?