Reforming US foreign aid 

July 2010

There is a lot of momentum in Washington around reforming the US foreign aid system to make it more effective at meeting the needs of poor people around the world. This system governs all of US foreign assistance to the poor, including funding for the water and sanitation programs that are so vital to lifting people out of poverty.

Over the last year, the White House, the State Department, and Congress have all signaled their commitment to building a stronger US international development program by undertaking measures that will make serious improvements in our country’s foreign assistance.

The comprehensive review of all US global development policy requested by President Obama, led by two of his closet advisors, his National Security Advisor and the Director of the National Economic Council, has been completed. We are now awaiting public release of the study, which we expect will make several recommendations including a call for increased ownership and accountability for recipient countries, as well as the creation of a National Strategy for Global Development that will be reviewed and updated periodically.

In May 2010, the Obama Administration also released the National Security Strategy which outlines the approach the government will take on security and foreign policy issues. The strategy describes US development efforts as key to strengthening security and raises development as a pillar of foreign policy along with defense and diplomacy. The elevation of development in this strategy signifies the importance that the Administration places upon it.

In the summer of 2009, Secretary of State Hillary Clinton launched the Quadrennial Diplomacy and Development Review to examine the current efforts and resources of the State Department and the US Agency for International Development (USAID) and to create a blueprint for the country’s future diplomatic and development efforts. State Department-USAID task forces have reviewed a wide range of issues during this process including operations, monitoring and evaluation, aid effectiveness, and collaboration. The task forces sought out feedback from the NGO community and WaterAid participated in those discussions. The final report, including recommended actions, is expected in September 2010.

At the same time that the White House and State Department have undertaken reform efforts, the House Foreign Affairs Committee led by Congressman Howard Berman (D-CA) has been drafting legislation to replace the outdated Foreign Assistance Act of 1961. The first section of the “Global Partnerships Act of 2010” was shared with development stakeholders for comments. WaterAid provided feedback to the Committee which will help inform the next drafts before it will be introduced to Members of Congress.

As all of these reform efforts continue, it is vital that water and sanitation remain central to US government efforts to combat poverty globally. Water and sanitation provide the foundation for success in so many other areas of development – including education, nutrition, and health.

For the US Government to achieve real progress in economic growth and poverty reduction, water and sanitation must be a priority of its development policy. WaterAid will be at the forefront of these debates, advocating for water and sanitation to help those in need around the world.