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This is an archived USAID document retained on this web site as a matter of public record.
Remarks to InterAction Forum
by USAID Administrator Andrew S. Natsios
June 5, 2001
Thank you Nancy, for your introduction, and for your leadership both with International Medical Corps and with InterAction. Thank you for having me here today. I certainly feel like I've returned home, having been part of this community for many years.
I deeply believe in the United States and its profoundly important role in making the world more peaceful, decent and civilized for all of its citizens. From our work together, we know the difference that America - that Americans -- can make in the world in support of freedom and democracy.
So I was deeply honored to have been chosen by the President as USAID Administrator. I could not have a better ally than Secretary Powell. He understands the important role USAID plays in supporting U.S. national interests - that foreign assistance is sometimes the most appropriate foreign policy tool, when diplomacy is not enough or military force imprudent. The Secretary has made it very clear that he expects me to transform this Agency to play that role more effectively.
It's fitting that my first appearance before you is at a forum on accountability. Secretary Powell and I agree that my mission at USAID is to make sure that we are doing the best job for the American people and the people of the world with U.S. taxpayer money.
I intend to make integrity and transparency the foundation of my service at USAID. Those of you who know me, know that I like to shoot straight, and I won't play any games with you; I expect the same from you. I also believe in transparency - I will tell you what I think and what I intend to do with the Agency. I want to use this forum and others as opportunities to hear from USAID's stakeholders on our initiatives and Agency's reorganization.
We face a much different world than the one we faced ten years ago. The two most distinctive trends in the world since the fall of the Berlin Wall have been globalization and conflict. There is stark contrast between the two trends:
On one hand, globalization means the opportunities that come with the Internet, a more open international trading and financial system that reduces the likelihood of conflict among economic partners, and the spread of democratic capitalism.
On the other hand, look at the increasing number of failed or failing states and of civil wars, many of horrifying brutality. Nearly two-thirds of countries that host USAID field missions have been ravaged by civil conflict over the past five years, in some cases destroying years of social, economic and political progress.
Our work plays a major role in moving countries toward opportunity and away from conflict. With appropriate and timely assistance, the spread of information and technology can foster increased productivity, economic prosperity and political stability in developing countries. Conversely, if developing countries are left out of the information age, and do not see any real benefits from the international trading system, then the promise of globalization will be squandered. Instead of prosperity and stability, we will likely see increased gaps between rich and poor, conflicts of increasing violence, acceleration of global health problems like HIV/AIDS and other infectious diseases.
As the challenges of the post-Cold War world have changed, so too has the world of foreign assistance. Governments and multilateral organizations are no longer the only or even the principal development assistance actors; nor is Official Development Assistance the most important source of funding. Increasingly, other organizations including NGOs, PVOs, private foundations, corporations, colleges and universities, and even individuals have joined the ranks of foreign assistance donors core. For example, in 1999 net total resource flows from the United States alone to developing countries and multilateral organizations amounted to over $50 billion. Of this, over $36 billion came from private capital flows and private grants by NGOs (including foundations and the like).
USAID's own report on private voluntary organizations reflects this new reality: last year, total U.S. Government funding to PVOs totaled $2.2 billion. Those same PVOs generated $9 billion from private sources for development and humanitarian activities. And I know that more than half of InterAction's membership receives little or no U.S. government funding.
So, here is the question: in the context of globalization and conflict, how do we, as a foreign assistance community, accomplish our objectives? How do we as Americans best continue the fight to alleviate poverty and food insecurity, support disaster and humanitarian assistance, and promote stable and free societies?
For USAID, the answer is by fundamentally changing the way we do business. I will start by organizing the Agency's business and programs into four Pillars: the Global Development Alliance, Economic Growth and Agriculture, Global Health, and Conflict Prevention and Developmental Relief.
The first pillar -- the Global Development Alliance (GDA) - is USAID's business model for the 21st Century. It will cut across all our programs and accounts. The GDA directly responds to InterAction's call for more effective public-private partnerships in development assistance.
Secretary Powell said he wants USAID to be a strategic alliance investor to address important development needs. The difference is that we are not looking for quick results and early exits, but sustained improvement over the long haul. We will use our resources and expertise to help partners in their investment decisions, and we will look for new partners who can bring new investments and new ideas to the overseas development arena. By investing relatively small amounts of start-up capital, USAID can generate much larger benefits in the achievement of our development objectives.
The Agency has been a pioneer and an incubator for partnerships, and I want to build on that with you. Many of you are involved in important, successful partnerships and collaborative activities with USAID. In the future we propose to serve as a catalyst to mobilize the ideas, efforts, and resources of the public sector, corporate America, the higher education community and non-governmental organizations in support of shared development objectives.
USAID brings to the table our statutory assistance, our long-term experience with and access to host-country governments, our extensive field presence, and our enormous technical and policy expertise.
To jump-start the process, we will establish a GDA Secretariat to focus on expanding outreach into the private, for-profit and not-for-profit sectors. We intend to target $160 million in FY 2002 funds specifically to generate new alliances and partnerships. GDA will not become a separate account; we plan to fully integrate GDA concept into USAID's operations not later than FY 2004.
I'm not saying that GDA can replace everything we do; there are areas where private funds simply are not available or not appropriate. But I want to make partnerships the rule, not the exception.
We will bring together activities that build on and strengthen each other into three "program" pillars that cut across all USAID funding accounts.
The Economic Growth and Agriculture pillar highlights the interrelationship and interdependence of economic growth and agricultural development, environmental sustainability, and the development of a country's human capital - with the ultimate goal of creating and cultivating viable market-oriented economies. Given the importance of agriculture and basic education (especially for girls and women) in most recipient countries, I plan to increase emphasis in these sectors.
Our Global Health pillar will group USAID's programs in women's reproductive health, children's health, infectious diseases, and nutrition. We will remain the world's leader in addressing health issues in developing countries, and in particular in responding to the catastrophic spread of HIV/AIDS. MENTION MY TRIP
We will group our humanitarian assistance, transition assistance and democracy programs under the Conflict Prevention and Developmental Relief Pillar.
USAID is the world leader in responding to humanitarian crises, whether man-made or natural; we will continue to strengthen our capabilities and leadership. I want to recognize InterAction's work through the Disaster Response Committee to strengthen PVO participation in interagency coordination and planning, address security needs of relief workers, enhance cooperation between PVOs and military forces in humanitarian assistance operations, and promote training for PVO workers operating in complex emergencies.
To complement our strength in humanitarian assistance, USAID must improve its ability to promote conflict prevention. We will undertake a major new conflict prevention, management, and resolution initiative. This initiative will integrate USAID democracy programs with new approaches to tackling crisis and conflict. We know from experience that by giving people the opportunity to peacefully influence their government, the United States advances the emergence of more stable societies that will become better trade partners. Your advice and perspective will be important to developing this initiative.
We face three nightmares in Afghanistan, the Democratic Republic of the Congo, and the Sudan. Many of us are horrified at the very serious humanitarian situation in Sudan, caused by both drought and war. In spite of our assistance and the good work of the non-governmental and UN organizations working in Sudan, the situation is still grim. The President named me Special Humanitarian Coordinator for Sudan to improve coordination within the U.S. Government; to improve our efforts with other donor assistance; and to coordinate external relations with other donors and the UN, NGOs and advocacy groups.
In the short-term, USAID is trying to ensure that there is no widespread famine in Sudan through the provision of emergency food and other humanitarian assistance. I saw an alarming set of reports about the deteriorating conditions and rising malnutrition rates among children under five. While in Kenya last week, I announced an additional 40 thousand tons of food to be distributed regardless of need on both sides of the conflict. We diverted a ship with 23 thousand tons of food that will arrive in Sudan within the next week, so we can move fairly rapidly to stop this crisis from turning in to a famine.
In the longer-term, USAID is working to ensure that the people of southern Sudan are less vulnerable and more self-reliant so that they are better prepared for a transition to peace.
Our vital programs must be based on central management systems that work effectively. I plan to focus my first year on overhauling the Agency's finance, budgeting, procurement and personnel systems. I intend to be a change agent, and make sure that we are doing the best job for the American people and the people of the world with (taxpayers' money allocated to USAID by Congress).
To reorganize the Agency around the pillars, we have begun to discuss ideas and options for a reorganization plan that will help us recruit talented leaders, improve our ability to articulate a coherent foreign assistance vision, and help us change the way we do business. Dirk Dijkerman and George Wachtenheim are coordinating this effort and we will be looking to you for feedback.
I know you have expressed a number of concerns about the Agency's inefficient and frustrating procurement practices - the micromanagement, the inconsistency in procurement practices, the lack of training for procurement officers, the time it takes to go through the procurement process.
Our procurement officers are doing their best to listen to you. On the training front, the outline for a USAID contracting officer course on grants management is now ready, and you will have a chance to review it very soon. The Agency also wants its partners to take the contracting courses as well - so we all learn the same things about contracting instruments and procedures.
But the fact is the Agency has 35 percent fewer staff than it did ten years ago, and we're dealing with more and larger awards than ever. We continue to use inefficient systems. Though there has been some progress in fixing these systems, it has been too slow, and neither innovative nor sweeping enough to get the job done.
I am considering a number of recommendations for reforming USAID's procurement process, some short-term and some longer-term. Believe me, we are not going to fix all the problems overnight. But we will fix them.
Let me say a few words about this year's budget request: the President had a number of tough choices to make in putting this budget together, and I was very pleased that he saw fit to continue to support International Affairs programs including foreign assistance - even as a number of other federal agencies face budget reductions. In particular, the 2002 budget request includes significant increases in funding for HIV/AIDS, for basic education, and for economic growth and agriculture programs that reduce poverty and hunger. The President's request also includes as additional funds for debt relief.
We need for the Congress to approve that request, with a minimum of earmarks and directives, so we have the resources and flexibility to carry out our reforms. I'd like to thank Mary McClymont for her strong words of support for the foreign assistance budget to House appropriators recently.
I recognize the challenges that we face dealing with difficult development problems - and I recognize the challenges I face in transforming USAID to cope with today's realities. Believe it or not, I asked for this job - indeed it's the only job in this Administration that interested me. I believe deeply in our foreign assistance mission, and I am excited to have an opportunity to make a difference for poor people around the world. I look forward to working with you on this worthy effort.
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Last Updated on: January 02, 2009 |
