Secretary Clinton focused on investment in international development as the U.S. administration’s 2010 mantra.
The approach is country-led investment with a focus on results. This isn’t a new idea, of course. Millenium Challenge Corporation has taken this successful approach for the past five years.
Discussions between defense, diplomacy and development departments as well as development organizations led to decisions about approach to development. Or at least, the beginning stages of changes. Clinton’s speech on definitive changes, incidentally, evoked an encouraging roar of applause from both the development agencies and heads of state departments present at for her speech at the Peterson Institute for International Economics on January 6th.
“But through investment, we seek to break the cycle of dependence that aid can create by helping countries build their own institutions and their own capacity to deliver essential services. Aid chases need; investment chases opportunity,” said Secretary Clinton.
With a focus on results, international development programs will look to achieve five goals:
1. Partnership
Countries must demonstrate a commitment to development by practicing good governance, rooting out corruption, making financial contributions to development. Strong economic policies are also a prerequiste. Secretary Clinton cited two examples: levying taxes on those who can afford them and managing natural resources sustainably and devoting some of the profits to people’s development.
Partnerships with other organizations also play an important role in international development. Some foundations are also combining philanthropy and capitalism through entrepreunerial programming such as Acumen Foundation. Private companies also play a valuable role in sustainable development, according to Secretary Clinton.
“A company like…Unilever/Hindustan, which has created soap and hygiene products that the very poor – long-overlooked by private business –can afford,” said Secretary Clinton.
2. Integrate development more closely with defense and diplomacy efforts
Intregated efforts between the three Ds of forien policy, (defense, diplomacy and development) is essential for success abroad, according to Secretary Clinton. The U.S. government can ” leverage the expertise of our diplomats and our military on behalf of (international) development (workers),” said Secretary Clinton.
3. Coordinate development across Washington,D.C.
A growing problem is the number of agencies broaden their scope internationally, adding important expertise and capacity, and working the same developing issues from different angles. This creates overlap and contradiction between development efforts.
As attracting investment and expanding trade are critical to development, the U.S. administration encourages coordination between development programs (USAID, MCC, and other agencies) with the trade and investment initiatives (USTR, the U.S. Export-Import Bank, and the Overseas Private Investment Corporation).
Regional efforts are also being supported and recognized as examples of regional coordination like the Africa Growth and Opportunity Act.
Also, there is also an effort underway to bring contractor workers back to work for government agencies.
“It is not financially sustainable, said Secretary Clinton. “We cannot continue to send so many dollars out the door with no monitoring, no evaluation, no accountability.”
By bringing contract workers back into government organizations, the return on the investment in human capital will be greater, according to Secretary Clinton.
4. Sectoral work
In the past, the U.S. worked in all areas possible for international development. The U.S. administration is taking a new approach. Investment and technical expertise of U.S. development agencieswill be focused on a few key sectors: health, agriculture, security, education, energy, and local governance.
“Rather than helping fewer people one project at a time, we can help countries activate broad, sustainable change,” said Secretary Clinton.
5. Technology
Through technology rural neighborhoods in developing nations can move decades ahead with just access to the internet and mobile phones.
Secretary Clinton cited farmers learning the latest local market prices and know in advance when a drought or a flood is on its way through mobile phones. Mobile banking gained access to savings accounts or money sent from overseas through cell phones as well, according to Secretary Clinton. Activists used blogs and social networking sites to hold governments accountable for how they use resources and treat their citizens: an opportunity to raise transparency on corruption and repression in developing countries, said Secretary Clinton.
Secretary Clinton also mentioned that the sees expanding development programming coming State department, USAID, multi-lateral institutions such as World Bank and even stimulus money. She pointed out that the administration would “very much like to see (American technology) used” and supporting development programs is one way to creatively development American economy and help developing countries at once. The details of how this would work is still being considered. Clinton says that as the Geneva Accord will be the subject of meetings throughout the year. She is hopeful that ideas such as American technologies use in developing countries might be a consideration.
6. Investment on women and girls
Women and girls are critical to advancing a country’s social, economic, and political stance globally. Future development programs with a focus on improve women’s health, income, and access to education and food.
Programming is in progress which focuses on women farmers, or women health educators to improve outreach to women and girls. Also, there is more discussion with partner countries to play a more central role in development work. Senator Clinton mentioned new scholarships for female agricultural scientists in Kenya.
These goals mentioned above might be altered or adjusted according to the results of the inaugural Quadrennial Diplomacy and Development Review (due to be completed in earl spring) and The Presidential Study Directive on U.S. Global Development Policy.
For access to Clinton’s entire speech visit: http://www.state.gov/secretary/rm/2010/01/134838.htm
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