As the largest bilateral donor in the world, the US government can play a leadership role in pushing aid effectiveness principles and sustainable development practice. The past two administrations have interwoven, to varying degrees, a number of these principles into the reform agenda of USAID as well as new institutions and initiatives like the Millennium Challenge Corporation, PEPFAR, Feed the Future, and Power Africa.
CGD evaluates US efforts to implement these reforms and principles which include:
The principle of country ownership reflects the idea that local actors including governments, civil society, and the private sector should have a stronger leadership role in the formulation and implementation of development activities in their country. Country ownership is central to the approaches of MCC, Feed the Future, and Power Africa, while USAID and the State Department have increasingly focused attention on shifting a greater share of implementation leadership and responsibility to local actors.
Foreign Aid Transparency & Accountability
In recent years, there has been a major global push to increase the transparency and accountability of foreign assistance. The US government has the potential to be a global leader in aid transparency and accountability, but it has struggled to make progress on its international commitments.
Domestic Resource Mobilization
Domestic resource mobilization (DRM) broadly refers to the process of countries raising their own money to finance their development agenda. US government efforts to support DRM have focused on helping governments expand their tax bases, improve tax compliance, and increase the capacity of tax administrations. In addition to an emphasis on resource collection, current US efforts around DRM also emphasize the importance of the transparent and accountable expenditure of resources by governments.
Results or outcome-based aid has long been a key area of study for CGD. Compared to traditional models of US foreign assistance, outcome-based funding models shift program risk and align incentives, encourage innovation and adaptation, and focus on the achievement of measurable results. Outcome-based aid approaches have shown promise in improving service delivery, and can ensure donors only pay for the results they want.