Sunday, October 30, 2011

High Impact Development: Effects of Austerity

In another excellent analysis, Connie Veillette of the Center for Global Development lays out some thoughts on providing more focus and selectivity for USAID efforts. 

She focuses on 3 indicators:

1) a reduction in the number of countries receiving aid, a reduction in aid as countries move into higher income categories, or a recognition that some countries are not in a position to benefit from assistance;

2) resources focused in a smaller number of sectors identified as crucial for economic growth; and

3) selectivity around high-impact initiatives.

After some analysis of the current situation, she provides 4 recommendations for moving forward in today's environment of austerity and lower funding:

  • Re-evaluate and eliminate small programs. 
  •  Create a State Department aid account for strategic/political purposes.  
  • Focus on a smaller number of objectives that have big impacts and get out of unrelated programs. 
  • Identify comparative advantage. 
Read the full elaboration here.


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