Policy framework for bilateral foreign aid : implementing transformational diplomacy through development

S. bilateral foreign aid. To improve policy coherence and address both real and perceived issues of effectiveness, this policy identifies, clarifies, and distinguishes among USAID"s core strategic goals; calls for a clearer alignment of resources with each goal; and establishes principles for strategic management to achieve results in terms of each goal. It thereby provides the overarching framework for the Agency"s strategies and policies and for USAID strategic planning, budgeting, and programming. USAID"s policy framework is based on five core strategic goals for foreign aid: (1) promote transformational development; (2) strengthen fragile states; (3) support strategic states; (4) provide humanitarian relief; and (5) address global issues and other special, self-standing concerns (HIV/AIDS and other infectious diseases, climate change, biodiversity, direct support for international trade agreements, and counter narcotics efforts). To implement this framework, USAID will identify and distinguish among the resources and programs that address each of these goals. USAID will align budgetary resources according to which of the five goals these resources primarily support, and will manage these resources accordingly. For each goal, resources will be allocated among countries based on criteria that promote aid effectiveness and results in terms of that goal. The criteria for determining allocations to countries will vary, depending on the goal. Similarly, within countries, resources will be allocated to the activities that promise to yield the best results in terms of the goal under which these resources fit. Again, the guiding principles for resource allocation within countries may vary from goal to goal, depending on what principles are most important for effectiveness and results in terms of each goal. For each goal, graduation criteria will be established that: (1) indicate what assistance is supposed to accomplish; (2) help define need; (3) serve as a guide to programming; and (4) provide a basis for judgments about when the job has been accomplished and aid for the particular goal or concern can cease. Implementation of this policy would be greatly facilitated by a new set of accounts for foreign aid that correspond to the five core goals. In the absence of new accounts, however, the policy can be implemented by internal measures to align the resources in existing accounts with the core goals and manage those resources accordingly. (Author abstract, modified)