The Next President’s Development Blueprint Blues
The Center for Global Development released a lengthy briefing book of proposals after a year-long effort to shape the agenda for the White House in 2016, as it decried a “narrow” aid focus not harnessing private capital and remittance flows in the face of competing bilateral and multilateral providers from the developing world itself. The group lamented that the US for the first time in decades will not be a member of a global institution, the $100 billion AIIB founded by China, in part reflecting emerging market frustration at IMF quota reform failure. Assistance is now dwarfed by not just overseas direct and portfolio investment but government revenue in all but the poorest countries, and although emergency and humanitarian relief needs continue collective action on climate, agriculture, health and other areas remains an unmet challenge. The report urges an “ambitious” prosperity and security strategy that can revamp policies with new political leadership without billions of dollars in fresh funding. It believes Congress and the business community can back the direction as the output will be circulated among the numerous presidential campaigns.
The case for a unified Development Finance Corporation was repeated to combine OPIC with other agencies and use the range of debt and equity powers. The Export-Import Bank was left out of the structure as its charter was not renewed due to Republican lawmaker opposition. On immigration a guest worker agreement could be readily struck with Mexico and broader global skills partnerships could be forged. On trade AGOA extension and modification should be a priority, and as the Trans-Pacific and Atlantic accords enter final negotiations WTO efforts can be revived although the Doha Round must finally be “buried.” On data transparency initiatives such as in extractive industry could be expanded and supplemented, with tax information to be exchanged beyond the current OECD framework and beneficial owners unmasked particularly in offshore havens. Company natural resource payments could also be better flagged under provisions of the 2010 Dodd-Frank Act pending a formal SEC disclosure ruling, and the State Department and other aid givers have yet to furnish statistics for an integrated Dashboard website.
On tropical forests, the model could be strengthened for the 2020 private sector alliance of commodities firms to limit damage and compensate preservation. The 2014 Power Africa program could benefit from enabling legislation and clearer authority including the use of traditional fossil fuels where renewables are too cumbersome to develop. USAID needs a “top to bottom” review in the incoming administration with its $12 billion spread among 125 countries, but only 10 getting half the budget. Performance metrics are lacking with a ranking in the bottom half of worldwide donors. National security importance should be considered but congressional mandates can be eliminated and presidential overarching visions should be checked against existing program outreach. The Millennium Challenge Corporation after a decade of operation could still improve cost-benefit analysis, criteria flexibility and grant results and it has tended to emphasize infrastructure over other high-impact purposes. The paradigm generally should shift to paying for outcomes and the multilateral component of appropriations should revert to the 20 percent range to achieve a multiplier effect and bridge the partisan divide, the collection concludes.
