An article written by Kim Jerome Alcantara, Krizia Aleia Mae Cortez and Antonio Jaime Campos de Luzuriaga.
On high hopes
To us in the field of development studies and other related to it, we perceive development as different from growth for this was what the many literature has taught us. But to a layman, these two (2) great concepts can be used interchangeably; hence the word has been defined in so many ways.
On a traditional perspective, development has been seen as the capacity of the national economy to generate and sustain an annual increase in its Gross National Income (GNI) at the rates of 5-7% or even more. Hence development strategies have been concentrated to rapid industralisation, often at the expense of agriculture and rural development. The primary importance which the traditional economic measures give emphasis on is to get the growth job done; thus undermining the condition of poverty, discrimination, unemployment and income distribution (Todaro & Smith, 2009).
One definition is taken from the concept of ‘New Economic Approach’ coming from the book of Todaro and Smith (2009) entitled ‘Economic Development,’ the concept of economic development has been refined and redefined under the context of a growing economy and in terms of reduction, if not elimination, of poverty, inequality and unemployment. Looking at it closely, development must therefore be perceived as a multidimensional process involving major changes in social order, popular attitudes and national institutions together with the pursuance of economic growth, eradication of poverty and the reduction of inequality.
Another definition is taken from Amartya Sen’s ‘Capabilities Approach.’ Sen, a 1998 Noble laureate in economics, argues that the ‘capability to function’ is what really matters for status as a poor or well-enough person. As Sen put it, “Economic growth cannot be sensibly treated as an end in itself. Development has to be more concerned with enhancing the lives we lead and the freedoms we enjoy (Todaro & Smith, 2009). Basically, the freedom that Sen has been trying to argue boils down to the choice of functionings, given one’s personal features and one’s command over commodities.
But what if the odds are not in favour of a certain individual, or country, therefore paving the way for it to hinder its strive for its own development, how is the individual/country going to cope up? What if despite series of efforts to alleviate the living condition, an individual could not achieve what he/she wants to achieve for himself/herself, what does one need to do? This is the part where assistance comes in play.
Give out, dig in
Although assistance provided for many countries and individuals may come in various ways, one of the most prominent assistances that are present as of today is assistance from various organisations. Assistances provided by many organisations, both local and international, materialise based from what the organisation wants to pursue. Some organisations may want to dwell on the economic aspect, wherein it will provide programs to increase livelihood capacity and income revenue of a community through workshops and seminars. Others may want to focus on the social aspects, wherein it may provide community-building seminars; health care facilities, which are then passed to the community for future use and maintenance, to improve the health conditions of those living in the community; network building through meetings set-up in partnership with other organisations and institutions. Most of the time, these assistances are also named as aids or donations, and if international – foreign aids and donations. In this entry, we shift our focus to the United States Agency for International Development (USAID). Not only that we are going to describe and to explain what it really is. But we also aim to give our personal critiques and arguments to and against it and make the readers realise what this organisation does to help others escape from the notion of poverty trap.
USAID
History
In 1946, the United States has provided the Republic of the Philippines with more than US$5 billion in economic aid, in which a billion goes for the food aid. This assistance has been vital to the development of the country’s infrastructure, providing of training and technical assistance, increase in productivity with regard to agriculture towards economic growth, promotion of sustainable environmental management, improvement of health and nutrition, and fostering democracy and decentralization (USAID website). Throughout the course in International Development (INTDEVT), we have taken into consideration the fact that it is a good way to look at the history of an entity in order to better understand what it has become now. So to have a better glimpse of how did it all started, here is a quick timeline taken from the website of USAID:
1946-1950: “Beginning of the Marshall Plan”
When the World War II has finally come to an end; the U.S. poured over $1 billion in war recovery benefits to the Philippines, and most of this in the form of payment to Filipino veterans. Part of this assistance was directed towards the rehabilitation or total reconstruction of public infrastructures damaged during the hype of the war.
1951-1961: “National Rehabilitation and Basic Infrastructure”
This is when the first bilateral agreement between the U.S. and the Philippines – the Foster-Quirino Agreement – came to life and ends with the 1961 Foreign Assistance Act and the establishment of USAID as the lead agency responsible for administering U.S. economic assistance. The funds during this period were focused on developing a wide range of basic institutions and national services the country required. Urban, industrial development was the priority economic objective of the program.
1962-1973: “Transition to Rural Development”
USAID moved away from its earlier urban industrial development strategy toward a rural development focus. Small-scale activities in agriculture, social services, and community development were supported through short-term technical assistance.
1974-1986: “New Directions: Rural Development and Local Capacity Building”
The program strategy during this period shifted to meeting the basic human needs of the poorest segments of the rural population. Concomitantly, USAID sought to strengthen local government planning and implementation capabilities to advance decentralization of government functions.
1987-1993: “Re-starting National Growth: Support for Democracy and Private Sector Development”
With the end of the Marcos regime, the U.S. moved decisively to bolster the Aquino Administration and to help re-invigorate the national economy and development programs. The Multilateral Assistance Initiative (MAI), or known locally as the Philippines Assistance Programs (PAP) concentrated on achieving economic stability and growth by improving macro-economic management, encouraging domestic and international private sector development, and alleviating sector-specific constraints to growth through policy-based sector assistance Programming. Improved health and more sustainable population growth were also emphasized during this era.
1994-1999: “New U.S.-Philippine Partnership for Democracy and Development”
With the closing of U.S. military bases at Subic and Clark, USAID’s development strategy began to place more emphasis on “trade” and less emphasis on “aid”. In line with the strong growth in the region, efforts were made to assist the country become a model Newly Industrialized Country (NIC). Programs were also created to address global problems such as global climate change and HIV/AIDS. Democracy and civil society efforts moved from national to local levels and focused on broad participation in public policy-making.
2000-2004: “Revitalizing the Economy and Transforming Governance to Accelerate Sustainable Growth”
Responsive to changing local and international circumstances, USAID’s revised strategy fundamentally reshapes USAID development assistance in a nation that is one of the U.S. government’s most important allies and development partners. Under this more focused strategy, USAID will capitalize on its comparative advantages in promoting competition and transparency, combating Corruption, using systematic approaches to donor coordination and collaboration, encouraging environmentally sustainable development and employing market-based mechanisms to promote family planning and reforms in health services delivery.
2005-2009: “Enhanced security and accelerated progress towards sustainable, equitable growth”
About 60% of economic assistance resources are targeted to Mindanao for programs that mitigate conflict, promote good governance, and assist health, education and renewable energy programs in conflict-affected areas. National programs help address constraints to trade and investment, improve fiscal management and revenue administration, improve rule of law and anti-corruption efforts, spur micro-enterprise growth, improve economic infrastructure, increase agricultural productivity, improve family health, and improve environmental management.
2009-2013: “A more prosperous, well-governed and stable democracy that is able to meet the needs of its people, especially the poor”
USAID’s strategy seeks to accelerate and make economic growth more inclusive through improved competitiveness and increased infrastructure services; improved fiscal management and revenue administration; strengthened governance, rule of law, anti-corruption efforts, and electoral processes; improved human rights protection and anti-trafficking efforts; improved family health, reduced geographic disparities in health services, and increased access to water and sanitation; increased access to quality basic education; improved environmental management; and increased effectiveness of disaster preparedness and relief programs. The Mindanao focus is also retained.
Framework
From the file uploaded in the website of USAID, we gather USAID’s foreign assistance framework which are basically divided into five objectives. But before getting into the details of it, we would just like to mention USAID’s goal that is included in its foreign assistance framework, which goes, “(USAID aims) to help build and sustain well-governed states that respond to the needs of their people, reduce widespread poverty and conduct themselves responsibly in the international system.” This goal is aimed at the promotion of the five different objectives which it wants to target namely: (1) Peace and security; (2) governing justly and democratically; (3) investing in people; (4) economic growth, and; (5) humanitarian assistance. These five areas were the basic targets of the USAID. Basically, this is where the organisation wants to establish itself and set an impact for the benefit of its constituency. Under the objectives are the program areas and program elements which will pave the way towards the fulfilment of the objectives mentioned above. You can get the full details and image of the framework from here.
What does USAID do?
It is not new to us that USAID has been continuously doing and implementing various activities in the fulfilment of what the organisation wants to do and to establish and one of the most notable things in here is the public-private partnerships (PPP) that it has built for the benefit of those who are in need. The organisation has not failed to recognise the fact that development should not just come one-way. But, development should also come two-way, coming from various sectors through it working simultaneously together. The numbers from USAID website show that from 2004-2009, USAID Philippines has raised $225 million all alone from partnerships and the beneficiaries of the programs in here are basically concentrated in conflict-afflicted areas of Mindanao. Some of the many perks that this partnership generate include: (1) Increased access to microfinance, including mobile banking; (2) sustainable agriculture, improved coastal resources, water resources and solid waste management; (3) rural electrification and sustainable energy development; (4) increased private sector participation in basic health delivery and contraceptives marketing, and; (5) improved access to quality education and livelihood skills in- and out-of-school youth. Looking at it closely, USAID does not want to confide itself under one scheme; hence it has targeted to constitute itself to various sectors, answering different concerns. This is where multidimensional takes place, might we say.
We take a look at the education and workforce development brought about by the PPP. From the USAID website, we have taken one of the best programs in education that has been materialised and it is the Growth with Equity in Mindanao (GEM) Program. This program aims to implements partnerships with Microsoft, Intel, Cisco Systems and local mobile phone service providers to introduce computer literacy and internet connectivity to high schools in the conflict-affected areas of Mindanao. GEM also partners with colleges and universities in a customised English language training program helping Mindanao graduates to access jobs requiring advanced English language proficiency, and with local and multinational companies to provide recent, qualified Mindanao graduates with three to six month internships. Under the said program is the Education and Quality and Access for Learning and Livelihood Skills (EQuALLS) project. This project aims to build partnership with local and international foundations to improve access to quality basic education and livelihood skills for in-school and out-of–school youth in the conflict-affected areas of Mindanao. Recent activities include: a book transfer program with Brother’s Brother Foundation and logistics support from the U.S. military; school building and rehabilitation with Petron Foundation; a dictionary distribution program with National Book Store Foundation; and computer literacy training for teachers with Microsoft.
In the energy and environment, USAID does not just stop from establishing partnerships to ensure better health for Filipino children and to bring electricity to the schools in the remote islands. But it has been well-established in the promotion of local capacity development for the communities’ sustainability and it has strengthened local capacity on greenhouse gas accounting. You can read more here to know more about USAID’s program in energy and environment.
The local capacity, ownership and the strengthening of partnerships with private and public institutions have been the strategy for the health programs of the USAID. It wants to rebuild communities where the citizens have their own story to share, by making health care benefits such as maternal health care, right child delivery and medical outreaches available for the many. You can read more here to get a better glimpse on USAID’s program in health.
(Photo on USAID to Gaza)
Building new and improved classrooms for the conflict-afflicted communities and especially those that were struck by typhoon is one of the many priorities of USAID in education. This was shown in the project of partnership building in Sulu and Basilan (for the conflict-afflicted) and Cagayan de Oro city and Iligan City (for the typhoon-stricken) to build new classrooms. Another is the training for the out-of-school youths on agri-based livelihoods to make them more productive for their respective communities. You can read more here to have a better take on USAID’s program in Education.
For the democracy and governance program, the USAID aims to educate different communities and even the whole country through various medium such as forums and workshops towards the achievement of a better condition of life. The topics may range from anticorruption, budget process education and management for transparency and accountability. Basically, these programs are geared towards the betterment of institutions to govern their constituency more efficiently. You can read more here to see and understand more cases that he USAID has established on its program in Democracy and Governance.
As for the humanitarian assistance, this is where the organisation becomes a foreign donor. USAID sends response and help to those people who are in need of funding and reliefs, especially those that were affected by tragedy and calamities. Through raising ample amount of money, the organisation aims to help these communities afflicted by calamities, hence making its presence felt in the community itself. You can read more here to see what the USAID has done towards the aim of this program in Humanitarian Assistance.
On the economic side, USAID has taken its part of developing various mechanisms to ensure the communities’ stability and growth. These projects include women empowerment, infrastructure development, and globalisation of local market firms and entering the market arena, improvement in income generation, providing assistance for the former rebels to find a good place in life to start anew and many more. The remarkable thing that USAID has done was that it has finally constituted itself and has defined economic growth not only on the income side. But it has included more concepts (mainly social concepts) to strengthen the base of its economic growth programs. You can read more here to know more what the USAID has been doing towards the fulfilment of its program in Economic Growth.
To make things a little bit more interactive, we have found a good link to a map provided by the USAID to look at where its own projects and programs take place. You can view it here.
Our own take
The USAID has been in existence since its creation during the time of President Kennedy. Through the years under different administrations, it has undergone several proposals for its abolishment. But it seems that it’s purpose to help fund those in need continues to be its force that no proposition can topple. The reason why some legislators propose its abolishment is because its purpose was to help developing countries during the Cold War. But after the war has ended and a new administration has arrived, some found no use for its existence anymore. Despite much opposition to continue giving aid to several developing countries, legislators were not able to bring down USAID but only amend the purpose of its existence.
What’s wrong overall with USAID is that it lacks transparency.
The process of which the USAID operates is not disclosed to the public. Over the years of its operation, it has faced many controversies that tested its credibility and purpose.
Some critics say that the government aid provides rewards to their political and military partners instead of giving advanced and genuine social change as well as humanitarian causes. Some other reports accuse the USAID of using its “power” to influence decision-making in other countries particularly, in favor of certain political groups. In 2012, some countries have reportedly expelled US AID from their countries.
Other critics point towards US AID as an avenue of the United States to expand its markets as well as creating a continuous dependency. This is clearly seen in the US AID’s efforts in Ecuador where Dr. Wilma Salgado, a former consultant to US AID’s World Food Program, where the food assistance given to Ecuador almost caused the country its wheat production and embedded a dependency on the imported goods of the US.
According to the World Bank, the US holds the top spot for the worst spender of aid budget with 70% of its own aid budget spent on itself, spent on their own goods and services. And more than half is spent in middle income countries in the Middle East. Only $3bn a year goes to South Asia and sub-Saharan Africa (Monterrey: “U.S. Will ‘Seek Advice On Spending Aid’,” World Bank, March 21, 2002).
If developing countries are in need of more finances, US AID requires them to agree to certain conditions that do not always favor the developing countries as it does to the donor countries. Centre for Science and Environment had this to say regarding the US’ conditional pledge for addition finances:
“Thus, status quo in world relations is maintained. Rich countries like the US continue to have a financial lever to dictate what good governance means and to pry open markets of developing countries for multinational corporations. Developing countries have no such handle for Northern markets, even in sectors like agriculture and textiles, where they have an advantage but continue to face trade barriers and subsidies. The estimated annual cost of Northern trade barriers to Southern economies is over US $100 billion, much more than what developing countries receive in aid” (Puppets on purse strings, Down To Earth, (Centre for Science and Environment) Vol 10, No 23, April 30, 2002).
According to a former analyst and consultant, Marvin Weinbaum, he states that “It’s a structural problem” and that “Aid agencies operate in a way that ties them to regulations that leave very little scope for flexibility.”
“Indigenous contractors can do it cheaply but it doesn’t meet our standards,” states Mr Weinbaum. He adds that “I know of a case where the US company never built the schools in Afghanistan for which it was awarded a contract and was rebidding for it.”
In this light, do we see that an international organization aimed at improving the lives of their fellow men fall to the pits of power hungry influences that delude the organization of its main objective?
Much has been said and done
For the many, its existence is a vital thing to look at. For some, it still lacks some of the key parts, such as transparency. But what sets USAID apart is that it has established itself well in the Philippines and has been known to the many of us. It’s effort to bridge and establish partnership with the various sectors, organisations and institutions is commendable and exceptional. In times of help, we seek of help, and USAID provides good helping hands to us not just to realise what we can do escape problems, but also to realise what more can be done to our community. USAID is working triple time – triple time to establish partnership with the three sectors (private, public and nonprofit) – in the hopes of helping us realise what is needed and what other ways can be done to achieve development and progress and not just sticking to the traditional ways.
References:
http://www.usaid.gov/
http://philippines.usaid.gov/
http://ngin.tripod.com/241002c.htm
http://news.bbc.co.uk/2/hi/7405434.stm
http://ngin.tripod.com/usaid.htm
Todaro, M. & Smith, S., (2011). Economic Development. Pearson Education, Inc.: Boston, USA.
International Development A51 
