A New Approach to Country-Specific Foreign Assistance Strategies

A New Approach to Country-Specific Foreign Assistance Strategies:
Country Assistance Strategy (CAS)

Background

The lack of comprehensive U.S. Government (USG) strategies for foreign assistance programs is often cited as a shortcoming of the current system. To address this deficiency, the Office of the Director of U.S. Foreign Assistance (F) established a State-USAID Task Force in August 2007 to develop a new approach to producing country-specific foreign assistance strategies. The Task Force recommended the introduction of a five-year U.S. Country Assistance Strategy (CAS) that would encompass all State and USAID programs. In February, F approved the Task Force’s concept paper and agreed to its recommendation that the concept be tested initially on a pilot basis. Since February, however, the CAS concept has been broadened to reflect a “whole of government” approach that goes beyond State and USAID programs.

The CAS concept and implementation is being reviewed on an ongoing basis by key stakeholders, including the Development Policy CoordinationCommittee[1] (PCC), where a number of agencies outside of State and USAID are represented. The intention is that the CAS process should produce a comprehensive statement of overall USG foreign assistance priorities in a given country, regardless of funding source.[2]

What is the CAS?

The CAS succinctly summarizes country-specific foreign assistance goals, and reflects USG commitment to partnership with the host-country and other international donors, both public and private. It is intended to fit particular country circumstances, and is open to modification within the five-year period in response to unforeseen developments. For example, it could be modified in the event of a major political turn or if a country becomes an MCC Compact country. However, it is intended to be re-drafted only every five years.

The CAS would identify and describe USGforeign assistance goals for a particular country and provide a sense of prioritization among these goals. It would not, however, constrain the USG in a given country from proposing, or agencies from favorably considering, assistance which is not identified by the USG as a priority in the CAS. Its intent is to identify the top four or five priorities that would account for the majority of the USG foreign assistance efforts. The CAS should provide a clear sense of what we anticipate can be achieved by the end of the five-year period: in other words, a vision of what the host country will look like in five years if our assistance goals are achieved. The CAS is intended to provide focus, not to be a comprehensive description of all USG foreign assistance interests or programs in a given country.

The CAS will capture State and USAIDforeign assistance programs, and will alsoreach beyond to encompass priorities within the broader set of USG-wide activities and reflect a consensus of the major USG stakeholders involved in foreign assistance for a given country, both in Washington and the field. It should also be based on consultations with the host government (except in those cases where that government’s priorities seriously diverge from ours, e.g. authoritarian regimes), as well as other important stakeholders: Congress, the NGO and private sectors in the country, USG implementing partners, and other donors.

How Will the CAS Be Used?

The CAS will:

• Improve strategic and programmatic coordination among the various Departments, Agencies, and other entities involved in implementing foreign assistance, both at headquarters and in the field.
• Be used by Departments and Agencies to inform their respective budgetary and programmatic decisions on assistance resources. The CAS will not replace or override existing legislative authorities or established policies guiding those agencies, bureaus or entities.
• Ensure that USG programs are responsive to host-country priorities.
• Improve coordination with other donors (bilateral, multilateral, and private sector).
• Be a tool for sharing information with the public, at home and around the world, about the key objectives of USG assistance. The CAS will be available to the public.

The CAS will not serve as a resource request or a performance management plan.
Interagency Coordination

The CAS should be introduced in such a way that it does not duplicate other processes or create confusion about U.S. government priorities. Although, as previously noted, the CAS is intended primarily to cover State and USAID foreign assistanceprograms and accounts in a given country;to the extent that assistance programs and accounts funded or managed by Departments and Agencies other than State and USAIDplan to address one of the key foreign assistance priorities in the country, the CAS should specifically address those programs. Regardless of whether the foreign assistance programs managed by other Departments and Agencies are deemed to be critical foreign assistance priorities for the USG, all agencies with active programs in a given country would be strongly encouraged to participate in the CAS process.

Who Approves the CAS?

Because every effort will be made throughout the process of producing the CAS to build consensus among all U.S. government stakeholders, and between the field and Washington, approval of the document should be routine in most cases. It will be submitted in the first instance to the regional Assistance Working Group (AWG), which is co-chaired by Deputy Assistant Secretaries/Deputy Assistant Administrators from the appropriate State and USAID regional bureaus and the F Regional Director. All interagency stakeholders in the given country will be invited to participate in the AWG.Assuming a consensus is reached within the AWG, the appropriate State regional Assistant Secretary, USAID Assistant Administrator, and Deputy Director of the Office of the U.S. Director of Foreign Assistance would approve the CAS. In the event of a disagreement that cannot be resolved within the AWG, the CAS would be referred to the appropriate regional Policy Coordination Committee (PCC) for consideration and approval or, in the absence of a regional PCC, to the Development PCC for consideration and approval.

Will Every Recipient Country Produce a CAS?

No. Not every country receiving U.S. foreign assistance will be required to complete a CAS. Although the exact criteria are still to be developed, countries with very small assistance programs would be exempted, as would most of those with one-dimensional programs (for example, those only receiving security assistance or only receiving health funding). Any need for these posts to set goals or priorities for assistance could be met through their annual Mission Strategic Plans. Also excluded from the CAS process would be certain countries already under intense interagency scrutiny and with existing strategies due to their high profile, e.g. Iraq and Afghanistan.

Implementation: Pilot Testing & Assessment

As noted, the Task Force recommended that the CAS be pilot-tested first.Ten countries and one regional program will participate in the pilot phase: Tanzania, Mozambique, and the Democratic Republic of the Congo from Africa; the Philippines from East Asia; Armenia and Bosnia from Europe/Eurasia; Morocco and USAID’s Office of Middle East Programs from the Middle East; Nepal from South and Central Asia; and Jamaica and Honduras from Latin America/Caribbean. An important criterion for selection was the willingness – enthusiasm even – of the post to participate in the pilot. We also sought a group of countries that would be broadly representative of the diversity of U.S. foreign assistance. Within the pilot group are countries with large, medium and small programs, receiving funds through a large variety of accounts, with several MCA Compact and MCA Threshold Programs, and two “focus” countries under the President’s Emergency Plan for AIDS Relief and the President’s Malaria Initiative (Tanzania and Mozambique). The goal is to complete the pilot phase by the end of FY 2008. The pilot experience is expected to help refine the process of producing the CAS, as well as the content of the document itself, and will be used to develop comprehensive guidance for broader implementation in FY 2009. The CAS process will be regularly evaluated and revised as necessary to ensure that both the process and product are responsive to longer-term USG foreign assistance planning and coordination needs.

Developing the CAS: Guiding Principles

Process: Assistance Working Groups (AWGs)[3] will be responsible for initiating the process of developing country strategies. Washington (F or regional bureaus) will take the lead in organizing the Washington-field discussions while posts will take the lead in organizing theconsultations necessary to develop the strategy. The post will bear primary responsibility for drafting the strategy document itself with assistance from Washington. The goal is to conclude the CAS process in a country, from initiation to final approval, in three months.

Washington/field collaboration: From beginning to end, the process of producing country assistance strategies will be a joint effort between Washington and the field. This ensures that the advantages of both perspectives – the field’s superior knowledge of local conditions and Washington’s knowledge of policy, political and resource trends – are fully exploited and reflected in the document. This approach should also help build consensus around the priorities identified in the strategy, and thereby speed up agreement on the final paper.

Focus on Country Performance and the Transformational Diplomacy Goal: To the extent possible (based on the availability of relevant data and analytical tools), the strategy process should examine “gaps” or impediments in a country’s performance and which of those most need to be addressed in order to move the country forward toward the transformational diplomacy goal, a reduced need for traditional development assistance, sustained economic growth, and a sustainable partnership with the United States.

Consultation with outside stakeholders: Washington and Post should agree on a list of consultations that will help inform the choice of foreign assistance priorities in the strategy. These should include, in most cases, consultations with the host-country government; with the non-governmental and private sector in the host country; and with other international donors, both public and private. Consultations with other U.S.-based stakeholders, including Congress, U.S. companies or U.S. NGOs with an interest in the country may also be considered.

Sequence of Events for Producing a CAS
Step 1:Washington Identifies Likely Resource Trends and Suggests Key Issues for Discussion. AWGs will meet to discuss and decide the most likely resource scenario during the five-year period (i.e., anticipated trend for all accounts, as well as expectations regarding earmarks). Agencies participating in the AWG may wish to consult with their respective internal Congressional liaisons to assess Congressional interests in the country. The AWG will consult available country data and relevant assessments.[4] The AWG will develop a preliminary list of issues and questions reflecting Washington’s perspective on assistance priorities for a given country and will share the list with Post as suggested agenda items for a field-Washington strategy discussion. Post may propose additional items.

Step 2: Post Consults with Stakeholders and Organizes Strategy Discussion. Post will consult with host-country government officials, representatives of the local private and NGO sectors, implementing partners, and other donors, and will review pertinent analytical work. As part of the Post-Washington dialogue, posts are requested to communicate to Washington the outcomes of in-country stakeholder consultations and Washington will communicate with the field the outcomes of meetings with stakeholders outside of the USG (relevant NGOs, other private sector stakeholders, Congress, etc.). Post-Washington dialogue will continue throughout the process, as appropriate for each circumstance. For example, there may be cases where it would be useful for Washington representatives to visit the field and discuss issues with the country team, or hold a discussion by digital video conference. The Chief of Mission should participate to the maximum extent possible.

Step 3: Drafting the Country Assistance Strategy (CAS). Post will take the lead in producing the first draft of the CAS, seeking to capture the conclusions of field-Washington strategy discussions and other consultations. Washington-based staff may participate in the drafting process if it is mutually desirable. The Post should share one or more drafts with the AWG to keep them informed and facilitate Washington input.

Step 4: Submitting and approving the CAS. Because every effort will be made throughout the process of producing the CAS to build consensus among all USG stakeholders, and between the field and Washington, approval of the document should be routine in most cases. It will be submitted to the regional interagency AWG. Assuming a consensus is reached within the AWG, the appropriate State regional Assistant Secretary, USAID Assistant Administrator, and Deputy Director of the Office of the Director of U.S. Foreign Assistance would approve the CAS. In the event of a disagreement that cannot be resolved within the AWG, the CAS would be referred to the appropriate regional Policy Coordination Committee (PCC) for consideration and approval or, in the absence of an active regional PCC, to the Development PCC for consideration and approval.

Country Assistance Strategy (CAS) Outline

I.Introduction – 1.5 pages

A.Country Context

1. Identify the relevant political, economic, security, environmental, and social trends.
2. Draw from relevant analytical documents (USG, World Bank, IMF, UNDP, etc.).
3. Cite nature of conditions reflected by country performance on third party indices (World Bank, Freedom House, Transparency International, Center for International Earth Science Information Network/Yale, etc.).

B.Host Country Priorities and Political Commitment to Reform

1. Summarize host-country national development strategies.[5]
2. Address how U.S. relationship with the host country affects ability to implement USG programs.

II.Overall Strategic Approach and Priorities - 2 pages

A.U.S. foreign policy goals and how assistance supports them: draw from decisions made by Principals Committee, Deputies Committee, or regional and functional Policy Coordination Committees; draw from most recent Mission Strategic Plan or other relevant documents; link to State-USAID Joint Strategic Plan and transformational diplomacy goal.

B.Strategic vision and/or themes for USG foreign assistance in the country and extent to which these align with host country priorities. How the vision, themes and ultimately results will be communicated to host-country audiences.

C.List of U.S. assistance priority goals (in rank order; no more than five): Each goal should be expressed as a combination of various Elements under different Program Areas (especially appropriate for “cross-cutting” goals like anti-corruption, conflict prevention, environment, or gender equity), or may be enumerated by Program Area.

D.Donor coordination and degree to which choice of U.S. priorities is influenced by what other donors are planning. Assess the magnitude, intensity, and quality of donor coordination. State whether or not the host country takes a role in coordinating its donors and their assistance. Indicate where the United States has a leading role among the donors.

III.Detailed Discussion of Priority Goals – 2-3 pages for each goal (Repeat below sub-sections for each Priority Goal)

A.Situation Analysis/Problem Statement

i.Summarize major development challenges, critical gaps/impediments, and opportunities for gains through foreign assistance.

B.Critical Assumptions and Risks

1. State relevant assumptions (e.g. level of conflict, political will of government, capacity of non-state actors, etc.) and relevant trigger points for considering new/different directions.
2. Summarize consequences of not attaining the goal in terms of achievement of U.S. foreign policy objective.

C.Assistance Approaches

1. Discuss how the goal is to be achieved in terms of types of programs (at the area or element level), and the respective USG agencies that are best suited to deliver these types of programs in the particular environment.
2. Take into account other activities and resources being deployed by host country and/or other development partners. How will these affect the selected approach(es), and conversely, how will the USG approach affect the activities and resources of others?
3. Discuss any bilateral programs that may benefit from a regional perspective and/or be enhanced through support from USG regional platforms.
4. Posts with USAID programs should summarize the country needs identified in FAA § 118(e) and § 119(d) analyses on biodiversity and tropical forests (tropical forest analysis portion is not required for countries that have no territory in the tropics), and state how these needs will be addressed in the chosen objectives.[6]
5. (Optional) Discuss other relevant considerations that may affect program selection or design, e.g. conflict mitigation, environmental impact, gender, etc.

D.Coordination of USG Efforts