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USAID: From The American People

USAID's 50th Anniversary

This is an archived USAID document retained on this web site as a matter of public record.

Administrator J. Brian Atwood
"Rethinking Development"
Ralph J. Bunche International Affairs Center
Washington, D.C., April 16, 1997
U.S. Agency for International Development

I want to thank Julius Coles for his invitation to speak tonight. I also want to thank him for his wonderful service to USAID and his contribution to development over the span of his first career. How many of us are lucky enough to have two careers? It seems clear when I see the progress the Bunche Center has made in its first three years that Julius is succeeding as well in his second career as he did in his first.

This conference's focus -- rethinking development in today's world -- could not be more timely. It is also quite fitting that we hold this event in the Ralph J. Bunche International Affairs Center. Dr. Bunche was a statesman in the very best sense of the world. He was truly deserving of the Nobel prize, and he was a statesman in the very best sense of the word. Dr. Bunche's work at the United Nations helped pave the way for establishing international institutions that continue to serve us today.
The last several years have found the development community doing a lot of soul searching about how to make development more effective as the world around us has changed rapidly. Losing the geo-strategic rationale has been tough on our budget, but the end of the Cold War could be the best thing that ever happened to development. For the first time, we are being allowed to pursue a development agenda based on achieving results. I am convinced that over time the success of this approach and the obvious burden of our challenge will restore our budget to its Cold War highs.

We now live in a world where political and economic freedom have advanced. Our government no longer sees supporting morally bankrupt leaders as either good politics or good policy. Today, we live in a time when we can focus development with great intensity on promoting economic growth, fostering democratic systems and addressing global health and environmental problems. There is little reason any longer to direct resources to nations that refuse to recognize the rights and potential of their own citizens.

The American taxpayers should be pleased to know that our program today invests in their future. It invests in job security as we create the new markets of the 21st Century. It invests in environmental protection as we work to create a climate change strategy for the developing world. It invests in our health safety as we try to deal with dangerous diseases at their source.

Yet, we don't hear expressions of gratitude from some quarters on Capitol Hill that our aid program today helps Americans as much as it helps foreigners. The need to balance the budget has brought us into the "Era of Rationalization." Government programs that are funded from discretionary budget accounts are subject not only to objective scrutiny, today they are subjected to abject rationalization. What we hear today is: "we don't need to invest in global stability." "Foreign aid has never worked." "Scientists can't agree about climate change." "Private capital will develop the new markets." "Trade not aid." "The population explosion will take care of itself."

Yes, and I still believe in the tooth fairy!

The debate today reminds me of the hesitation of Congress when we were trying to convince members to accept the Marshall Plan 50 years ago. One member of Congress, speaking about the potential effectiveness of the Plan, likened it to "believing that the Atlantic can be bailed out with a soup ladle." Yet another member, a Senator Wherry of Nebraska said investing Marshall Plan resources in Europe would be akin to throwing tax dollars down a "rate hole." Sounds familiar.

It was difficult in 1947 to look ahead to what was ultimately one of the most important foreign policy successes of this century. A New York Times editorial of that time wrote: "it is plainly difficult for many persons to think of a restored Europe in terms of normal civilian life as a reasonable possibility."

Imagine what the world would look like today -- 50 years later -- had we listened to the skeptics. Imagine what the developing world would look like had we not restored the European economies and transformed those former recipient nations into donor partners.
Thank goodness for the old fashioned notion that "politics stops at the water's edge." Senator Arthur Vandenberg argued that the Marshall Plan was a "plan for peace, stability and freedom. As such, it involves the clear self-interest of the United States."

It is not my intention to deliver a history lesson. However, I do think that when we hear critics today claim that parts of Africa are somehow economically and politically hopeless, we should remember those who wanted to condemn Europe to a future of failure. This is the same kind of thinking that said South Korea and Taiwan would always be economically backward and that a peaceful transition to democracy in South Africa or Poland was a pipe dream. These are the same voices who doubted we could eradicate smallpox or ever see democracies stretching from Argentina to Canada. Indeed, perhaps the greatest satisfaction in working in the development field is that we get to prove our critics wrong with such regularity.
We know development works. The real question is how do we make it work better, and how do we best advance our national interests in the process of delivering assistance. In his superb book, The Fragile Species, Lewis Thomas sets forth our challenge when he wrote: "The essential foreign policy question is the obvious one: what should the relatively healthy 1.5 billion human beings be doing to bring the other 3 billion into the 20th century? I shall take it as given that there is an obligation here." The 3 billion people Thomas talked about in his quote in the 1970's are now more than 4.6 billion people. For that reason, the question Thomas asked is even more relevant today.

Perhaps the most welcome change in how the international community approaches development assistance has been the consensus that has emerged among donors over the last several years. Despite the severe budget cuts in U.S. aid levels, the United States has retained real influence in shaping the common agenda among the donors. We pushed hard within the Development Assistance Committee, the DAC, to convince the donor nations to target real problems, set goals and measure results. For too long the international community measured success simply by the money it could spend and not by the impact of its programs on the ground in the developing world.

We pressed hard for more work in the democracy-governance area and for the principle that economic progress cannot be sustained in the absence of strong political and judicial systems.

We urged other development agencies to join us in improving our capacity to work in nations emerging from conflict, nations such as Angola, Bosnia and Cambodia.

We convinced development professionals to move away from a compartmentalized approach to crisis-prone regions and stressed a continuum that encompassed relief, recovery and development.

We promoted a more comprehensive approach to the needs of women in development, combining maternal health programs with access to family planning and reproductive health services, child survival programs, girls education and the economic opportunity created by microenterprise programs. For too long, the industrialized nations were too willing to turn a blind eye to the crucial role that women play in development.

Most important, we agreed that achieving results requires a comprehensive, integrated approach to development.

We agreed that economic growth and open markets lie at the heart of development. But we also pointed out that economic growth does not occur in a vacuum, and that growth cannot be sustained without strong and open government institutions, sound environmental management, sustainable population growth and healthy and well educated citizens.
These issues and more -- advanced through American leadership -- were reflected in a May 7, 1996 statement entitled "Shaping the 21st Century: The Contribution of Development Cooperation." In that very political document, 21 donor nations set those specific goals for the future:

--    We agreed that by the year 2005, gender disparity in primary and secondary schools should no longer exist.

--    We agreed that every nation should have in place a strategy for development that protects the environment.

    --    We agreed that by the year 2015 extreme poverty should be cut in half, that universal education should be a reality, that infant mortality should be cut 66 percent from the 1990 level, that maternal mortality should be cut by 75 percent of its 1990 level, and that reproductive health and family planning services should be available to all who want them.

These are ambitious goals, but they are eminently worthy and achievable targets. The DAC statement was also endorsed by the G-7 leaders at the summit in Lyon, France in July of 1996. If the United States had not advanced this agenda -- and the very concept of setting targets -- the outcome would have been quite different.

The nations of the industrial world argue over trade. We argue over security. We often pursue narrower interests that sometimes divide us.

But in the development field, we act as one.

The end of the Cold War has allowed us to focus more than ever on human capital and institutions. Now we can demand that any nation that receives our assistance be a good partner and fully embrace reform. Today, more than ever before, we can draw a straight line from our assistance programs directly to building democratic and stable societies and advancing trade and mutual cooperation.

We review the progress of the past 30 years and we ask ourselves, why not wipe out polio, leprosy, river blindness and, some day, even malaria? Why not reduce infant mortality by even more than one-half? Why not erase the gender gap that prevents hundreds of millions of girls from even receiving a basic education? Why not turn Senegal into the next Singapore? We, as the international community working with the dynamic leaders that have emerged in the developing world, have the power to do all these things. We are constrained only by our imagination and by the need to continually remind Americans themselves that international engagement is in their best interests.

As optimistic as I am, there are still serious challenges before us. Our greatest challenge today is in Africa. Yet, it is our greatest opportunity as well. Twenty-two of the world's 30 poorest countries are in Africa. A quarter of all African children will die before their fifth birthday from disease and malnutrition. Only half of all adults are literate, and fewer than 20 percent of young people can attend high school. HIV/AIDS infection rates are the highest in the world. It is no wonder that Africa's potential for political instability remains high.

Nowhere is the justification for foreign aid more compelling, in terms of our national values, than Africa. Fortunately, there have been a number of promising developments in recent years. Political and economic changes have swept across the continent, enhancing the opportunity for peace and prosperity.

USAID has focussed resources on the continent's most critical problems and concentrated assistance in countries committed to sound economic policies, good governance and democracy. Just as investments in Latin America and Asia over the past three decades are now reaping returns, USAID's assistance to Africa is laying the foundation for expansion of U.S. exports and economic growth in the 21st century.

Key to our investments will be promising regional approaches and initiatives that add value to bilateral programs while addressing critical development challenges. The President's Greater Horn of Africa Initiative, for example, is focusing on preventing crises, and achieving political stability and food security. The Initiative for Southern Africa, whose centerpiece is the Enterprise Development Fund, is promoting regional economic integration and investment across 11 countries. Our West African programs are also looking closely at promoting intra-regional trade through numerous private sector-led activities and networks.

A second major challenge for U.S. foreign policy is posed by violent conflicts and imploding nation states, not only in Africa, but around the world. Persistent crises have drained resources from other national security concerns and led to dilemmas over the use of force, international collaboration and national sovereignty. Since the mid-1980s, the number of man-made emergencies requiring a U.S. government response has doubled. The human, financial and political cost of these conflicts is staggering.

Since the Gulf War, the United States has mounted 27 military operations as a result of ethnic conflicts and failed states. Up to 1 million people lost their lives through genocide in one year in Rwanda. In the former Yugoslavia, the loss of human life in less than four years was the greatest in Europe's post-World War II history. The number of refugees and displaced persons in the world now numbers close to 50 million.

The root causes of conflict are tied directly to development. The fuel that fires many of today's civil and ethnic conflicts is poverty. It is the inability of nations to realize lasting social, political and economic development. The precursors of conflict are significant political, economic and structural weaknesses that render societies vulnerable to breakdown.

Among the ingredients for national stability are a balance between population growth and resources, healthy and educated citizens, economic opportunity and resilient and responsive political systems. Achievements in these areas are fundamental objectives of USAID's programs. Long-term development is the best preventive medicine to prevent crises.

In many ways, the challenge we have in preparing for
the next century is to maintain our commitment to long term development and crisis prevention while further developing the fast and flexible instruments that allow us to take direct and positive action in transitions or in situations where crisis is imminent.

Perhaps twenty years ago we might have used the Central Intelligence Agency to take covert actions in these situations. Maybe in those days of East-West conflict we were capable of using coercion and brute strength to bring about the desired policy outcome. But the world has changed. Today, our challenge is to develop overt mechanisms to quickly advance our strategic interests and prevent crisis. The overt mechanisms of the 1990s, unlike the covert efforts of the 1960s, have to be transparent, democratic and able to stand the test of public scrutiny. And AID - another three letter acronym -- is best position to do this task.

Only open programs will gain the international collaboration we need. Only open programs have a chance for success. These are the operational requirements of this new, dynamic paradigm: diplomacy and development programs working side by side both to prevent crisis, to transit from crisis, and to produce positive change. Diplomacy and humanitarian relief to mitigate and resolve crises. Diplomacy and development working together to move nations toward a more democratic, more peaceful international community. Idealistic? Maybe. But what choice does an indispensable nation have?

As we rethink development, we must also put forth even greater effort to make our diplomatic and development teams more representative of the racial, ethnic and gender diversity of our nation. Institutions such as Howard University and other minority serving institutions can have important roles in enhancing diplomacy and development through participation in long-term institutional partnerships.

We believe we have the most effective development program in the world because we play to America's strengths. We capture ideas. We promote our ideals. We exploit the richness of our society. And part of that richness is diversity -- diverse ethnic backgrounds, diverse racial backgrounds, diverse national backgrounds.

To further exploit that valuable concept -- unity in diversity -- I am pleased to announce tonight the new International Development Partnership Program -- IDP -- at USAID. Under the IDP, a number of competitive grants will be awarded to HBCUs over a five year period; five of them in the first year. The grants will be used to build and strengthen HBCU ties to higher education and other institutions in developing countries and in the United States.

HBCUs and other minority serving institutions make a difference by producing outstanding young men and women who may be the Ralph Bunche of tomorrow. Your involvement in foreign policy and development could shape the world for decades to come. And it is a world that will need reshaping.

I end where I began. No one in the development community should regret the ending of the Cold War. That confrontation perverted our profession. Today we can do development the way it should be done. We can work with good partners who trust our motives. It is a time of great opportunity -- a time of hope. It is a time when people of good will can make a difference. It is a time when foreign aid can make a difference as it has for 50 years.

This is an archived USAID document retained on this web site as a matter of public record.

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Last Updated on: July 18, 2001