Global Governance Reforms in Foreign Aid and Democracy

1. PIA 2528 Foreign Aid Donors and Local Governance

2. Governance: Reforms and Democracy The New Orthodoxy In Foreign Aid

3. Divisions Within the World • Before 1989 • North: Industrialist/ Developed Agriculture • Regime Type Democratic or not • Socialist vs. Capitalist • South: LDC limited agric. Industry • Underdeveloped Socialist or primitive capitalist • Crony capitalism • Patron-client

4. Divisions Within the World • Today • Capitalist Developed States, North America, Parts of East Asia, Western Europe including settler states vs. “Everybody else” • Millennium Challenge Account- Choose 15 poor, most market friendly countries. • Religion and Rejection of “Western” Model

5. Foreign Aid: Terms-Review • International Assistance • Foreign Aid- Loans vs. Grants • Technical Assistance- Contracts • Bilateral vs. Multi-lateral

6. Multilateral Issues: An Overview • The Problem of Debt • Stabilization vs. Conditionality • Public Sector Reform Policy Reform • IMF vs. World Bank vs. Bilateral Donors vs. UNDP • Bridging Loans • Sectoral Loans and Grants • Project Grants • International Requirements vs. domestic political response

7. Concepts and Terms: 21st Century • Neo-Orthodoxy • Heterodoxy • Stabilization/Reconstruction • Conditionality • Public Sector Reform

8. Major International Relations Terms • International Relations- Alternative Views • Structural realism; realpolitik • Balance of power • Bipolarity vs. Multi-polarity • Trans-nationalism

9. Major International Political Economy and Development Terms • Political Economy Tie Ins • Hegemony • Dependency Theory • Structuralism • Regime • Indigenization • Complimentarity • Import Substitution • Dependent Development

10. Foreign Aid vs. Technical Assistance • Current bias to international trade: Free Trade? • Governance and Nation Building: Democracy? • Millennium Challenge Account: Back to the future? • Get the LDC economy back to the 1950s • Dependent development • Is it dependent and is it development?

11. Foreign Aid vs. Technical Assistance 1. Impact of culture on Change a. Corruption, clan and ethnicity b. Clans in Somalia and taxi drivers in Washington 2. Impact of Standard Operating Procedures (SOPs) 3. The utility of the rational actor model for foreign aid- Can we escape bureaucratic politics for Clear Decision-making 4. Impact of Intellectual systems and ideologies influences and beliefs (Clash of Culture vs. End of History)

12. Governance Reforms • Democratic Governance • Stabilization and Conditionality Requirements- Free Trade and Open Currency • Public Sector Reform • Rule of Law and Anti-Corruption

13. Administrative Reforms Reform of the bureaucracy: Review a. Cutback the civil service the infamous 19% first cut b. Individual Consultants and Contractors work with investments and the service/commercial sector

14. Administrative Reforms: The World Bank Model   1. Strategic Planning and Management 2. Deregulation 3. Performance Management 4. Merit Recruitment 5. Decentralization: Development of Local Government and Support for Civil Society

15. Coffee Break • Fifteen Minutes

16. Ghana Democracy and Governance Program

17. Ghana Case Study of Civil Society Reforms Chapter 8, Foreign Aid and Foreign Policy: Lessons for the Next Half Century, (Picard, Robert Groelsema and Terry F. Buss, eds. (New York: M.E. Sharpe, 2008), pp. 146-172)

18. USAID Ghana Activities • Economic Growth • Health • Basic Education • Democratic Governance

19. Ghana USAID Activities • Source: USAID/Ghana Country Strategic Plan (2004-2010) • Date Published: May 2003

20. USAID Country Plan-Ghana • Seek eligibility for Millennium Challenge Account Investment (poor, per capita income below $1,415) • Qualify- Good governance, market friendly-16 indicators • Goal: Support Accelerated Economic Growth • In place in 15 countries, 2005 or 2006 • Fully up and running, 2008 at $5 billion per year • Focus: Infrastructure

21. USAID Country Plan-Ghana • Democratic Governance: SO 5 (Strategic Objective) • Note: Currently no focus on civil service reform • Two components: National and Local

22. Ghana Democracy and Governance-National Level • Historically- Electoral Processes. • Legislative Reform: Long term PSC (Personal Services Contractor- Legislative Specialist) • National Civil Society Development

23. Local Level: Democracy and Governance Source: ASSESSMENT REPORT: “Government Accountability Improves Trust” (GAIT) Date: December 8, 2003 Non-Competitive Contract: Public Administration Service

24. Assessment Team: Mixed Team • Kwesi Appiah: Ghana Consultant • Robert J. Groelsema: USAID Washington (D&G) • Avril Kudzi: USAID Ghana (D&G) • Ted Lawrence: USAID Ghana (Legislative Specialist) • Elsie Menorkpor (USAID Ghana (Education Specialist) • Louis A. Picard (Team Leader)

25. Decentralized Governance: Status • Current Contractor: Cooperative League of the United States of America (CLUSA) • Operates in the U.S. as National Cooperative Business Association • Assessment Report: Submitted December 8, 2003

26. New Grant: Cooperative Agreement- 2004-2007 • RFA (Request for Application) published December 18, 2003 (Competitive Bid) • Applications Closed: February • Grant Awarded: Estimate- April, 2004 • 3-6 year grant up to $11 million

27. Goal of GAIT* • Promote Partnership between Civil Society Organizations and Local Government • Institutional Structure: Creation of District Level Civic Unions to facilitate communication • Concern: Sustainability of structures after project completed *Government Accountability Improves Trust

28. Nature of GAIT Activities • Training and Workshops • Technical assistance to Civic Unions and Local Governments • Support public (town hall) style meetings • Key: Activities support interface of LG and CSOs (E-governance)

29. Decentralized Governance and E-Governance • Leland Initiative Money: Ended in 2003. Two or three centers established. Not clear that this was mission priority (Focus: e-Governance) • Assessment Report: Recommended Local Government/Civil Society “One Stop Shop” for dissemination of information • Possibly Operated by Civic Unions

30. E: Governance • Tele-cottage Model- widely used in Demnets (Democratic Network Organizations) in Eastern Europe • Technical Assistance (poss. Peace Corps volunteer) • Simple, on line publication and education programs (Logon- South Africa)

31. E-Governance • simple publications, posters, public information presentations • simple software programs designed to demonstrate basic principles of governance • Includes the use of advocacy, information rights, the functioning of district government bodies and administrators and the functioning of committees

32. Other Donors: Civil Service and Decentralization Reform UNDP- Normally bids, provides technical assistance World Bank- EOP (Expression of Interest) invitation to bid (RFP) DANIDA (Denmark), CIDA (Canada), DFID- (UK), GTZ (Germany) interested in Governance Private Foundations: McArthur, Gates, Ford Foundation- re. E-Governance

33. Impact • Evidence of community based civil society groups strengthened

34. Discussion • Where are we? • What don’t we know? • Can Governance be Promoted by Donors?