At a G-8 summit in Canada, U.S. President Barack Obama over the weekend confirmed for the first time a series of foreign aid reform plans that were leaked to the media last month.
In an announcement released June 25, Obama mapped out a new U.S. approach to international development that resembles the Presidential Study Directive on Global Development draft report, a White House strategy leaked to the news media in early May that focuses on emerging markets, technology, post-conflict countries and local capacity building.
The new announcement by Obama, who was attending a meeting of Group of Eight industrialized nations in Muskoka, did not provide details beyond what was contained in the leaked draft PSD-7.
Obama will be issuing a new development policy “in the near future,” according to his announcement. The new policy will:
- Foster the next generation of emerging markets by promoting economic development and good governance in countries or regions where “the conditions are right for progress.”
- Invest in “game-changing innovations” through research and development to create and scale-up technologies for health, green energy, agriculture, and other development applications.
- Meet basic human needs in a “sustainable fashion” by placing increasing emphasis on improving public sector capacity to provide basic services over the long-term.
- Tailor development strategies for countries reeling from conflict to foster long-term sustainable development goals by promoting stabilization and security.
- Hold all aid recipients accountable by placing a greater focus on policy reforms crucial to achieving development.
Apart from these objectives, the U.S. will pursue a new approach to development that:
- Is more selective as the U.S. will focus its efforts on “select countries, regions, and sectors,” and seek “a division of labor” with other donors.
- Leverages other donors, philanthropy, diaspora and the private sector by making a concerted effort to collaborate with other partners to leverage U.S. investments.
- Underscores country ownership and mutual accountability by partnering with nations that are “well governed,” and strengthening the institutions and supporting the development strategies of these countries.
- Strengthens multilateral capabilities and key reforms, and create new capabilities, “where required.”
- Drives policy with analysis by adopting metrics and “rigorous standards” for monitoring and evaluation.
