IGD’s Business Case for Foreign Aid Reform demonstrates how foreign aid’s effectiveness  is a critical concern to U.S. business. The Business Case argues that one of the best ways to boost growth and expand opportunity around the world is to improve the impact of U.S. foreign assistance. Our aid programs will have greater impact if we apply fundamental business principles, and successful reform will in turn give immense value back to business.

Key recommendations:

Start with a clear strategy

• -Formulate a comprehensive national strategy for global development that outlines clear objectives and encompasses all relevant trade, aid and investment programs
• -Put someone in charge: one individual responsible for coordinating all U.S. development policies and programs, who is accountable for delivering results and who serves as a unique development voice – distinct from diplomacy and defense – in interagency discussions
• -Know your customers: design assistance efforts so that they respond to local needs and priorities

Emphasize results

• -Evaluate development outcomes rather than dollars disbursed
• -Emphasize local management: give U.S. government development staff in country the flexibility and authority to allocate resources based on their knowledge of needs on the ground
• -Find more strategic ways to collaborate with the private sector to leverage impact

Invest for success

• -Put the right team in place: rebuild the government’s core development expertise
• -Support the strategy with adequate resources: increase funding for U.S. development programs over time
• -Leverage the investments made by U.S. development agencies with private sector commitments to catalyze greater development gains

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Posted in Foreign aid, Publications, Trade for development and tagged Aid reform, Private investment.