03 December 2007
Specialist Discusses Public, Private Aid to Developing World
USINFO Webchat transcript, December 3
Carol Adelman, a senior fellow and director of the Hudson Institute’s Center for Global Prosperity (CGP), specializing in international development and public policy, private giving to developing countries, foreign aid and global health policy, answered questions in a December 3 USINFO Webchat on foreign aid from the United States.
Following is the transcript:
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U.S. DEPARTMENT OF STATE
Bureau of International Information Programs
USINFO Webchat transcript
Rethinking International Aid: Public and Private Sector Aid to Developing Countries
Guest: Carol Adelman
Date: December 3, 2007
Time: 10:00 a.m. EST (1500 GMT)
Moderator: Welcome to our webchat! Today's discussion will begin at 10:00 EST 15:00 GMT. We look forward to hearing from you.
Moderator: Good morning webchat participants! We are excited to welcome Dr. Carol Adelman of the Hudson Institute's Center for Global Prosperity to today's webchat. She will be discussing International aid and the public private sector aid to developing countries.
Carol Adelman: Good morning, Rob, and thank you so much for facilitating this web chat. I am delighted to participate and am happy to begin taking questions!
Question [Naimat Ullah Khan]: LC Karachi: Ms. Carol, I would like to know about CGC & it's role in Third world countries. How do you operate & to whom this assistance provided?
Answer [Carol Adelman]: Thank you for your interest in our work. Our Center conducts in-depth research and analysis to identify what works and what doesn’t in government aid and private philanthropy projects in developing countries. We don’t provide grants like USAID or the World Bank, but we do provide information on best practices in creating aid projects that work by involving local leadership in developing countries, involving local resources, and making sure that local institutions are being strengthened. In our Index of Global Philanthropy we document successful projects in the private sector and show how they could be replicated in other countries. We also mention many organizations that are looking for good partners in developing countries. The Index is available for download from our website, http://www.global-prosperity.org
Q [Naimat Ullah Khan]: LC Karachi: Do you have any preference list? What is the criteria for AID seekers? i.e. are their some certain areas you focused?
A [Carol Adelman]: If I understand the question correctly, you’re asking, first, which countries are eligible to receive government aid. The Organisation for Economic Co-operation and Development (OECD), based in Paris, determines which countries are “developing” based on a variety of factors, including the countries’ Gross National Income (GNI). For detailed information on which countries are eligible to receive official development assistance (ODA), please visit http://www.oecd.org. Second, for groups or individuals looking for assistance from private philanthropies in the United States, our Index of Global Philanthropy provides a good guide to the organizations that are funding local projects throughout the world.
Q [Naimat Ullah Khan]: LC Karachi: Do you encourage individuals also? or any program to provide them assistance in their projects?
A [Carol Adelman]: Hudson Institute and the Center for Global Prosperity are not grantmakers, but we do highlight, in our Index of Global Philanthropy the numerous foundations, charities, corporations, religious organizations, and universities that provide over $30 billion worth of help each year to individuals and organizations in the developing world.
Q [Naimat Ullah Khan]: LC Karachi: Many international organizations which provide assistance to 3rd world impose some restrictions to them to comply? Do you think this helps?
A [Carol Adelman]: Sometimes international organizations become overburdened with their rules and regulations and fail to identify and respond to social entrepreneurs and local institutions in developing countries. These international organizations often design “one size fits all” solutions for countries. I believe that each country has its own set of problems, level of development, involvement of civil society. The international aid community should be more flexible in responding to new ideas and new projects. After all, local people and institutions are the best ones to know what’s needed in their communities. The obligation from those in developing countries must be to co-invest in projects funded by government aid programs.
You can do this by volunteering your time and raising money locally to contribute. In that way, foreign aid can pass a “market test” for success by raising local private resources to co-invest with government foreign aid monies. Also, many private philanthropy projects are working without government money and can be more creative and entrepreneurial because of this.
We look to programs that create local institutions and employ local talent and ideas. Members of the recipient communities are usually the ones who can best decide what their community needs and where that money should go.
Moderator: Dr. Adelman's article for the most recent USINFO electronic journal can be read at http://usinfo.state.gov/journals/itps/1107/ijpe/adelman.htm.
The subject of the most recent USINFO electronic journal is "Rethinking International Aid." A link to the entire eJournal is provided here.
Q [Naimat Ullah Khan]: LC Karachi: Would you like to suggest some resources for AID seeking organizations & individuals for assistance. Can you please refer us to some resources which could help them to organize their campaigns more effectively?
A [Carol Adelman]: The Foundation Center is an excellent resource for grantseekers and even has a “find funders” feature on its website, http://foundationcenter.org/findfunders/. Our two annual editions of the Index of Global Philanthropy highlight numerous donors who might be very interested in partnering with your AID seeking organization. The Index will provide you with names of both small and large funders who are looking for creative projects where there is local commitment of your ideas and resources. Also, there are considerable private resources in international development. In fact, U.S. private funding exceeds government foreign aid. But, these funders want to see your ideas, your commitment and your ability to measure results and learn from mistakes. Don’t forget to explore funding sources located in your own country. There has been a huge growth in local foundations that are funded by U.S. corporations and foundations, local wealthy entrepreneurs, and other private U.S. organizations such as United Way International and GlobalGiving com. These groups are looking for local projects, and yours, with strong local commitment, might be just the one.
Q [Alimjon]: Hello Mrs. Carol Adelman, Can you give statistical data on U.S. foreign aid to other countries and result a parameter of efficiency of funding on prosperity of any country, please? Thank You for your answer in advance.
A [Carol Adelman]: In 2005, the US Government gave $27.6 billion in aid to developing countries. Private giving from foundations, corporations, charities, universities, and religious organizations gave $33.5 billion to developing countries. In addition, immigrants working in the United States sent almost $62 billion to their families and communities in their home countries. Foreign aid needs to be better measured to determine its effectiveness. What we do know about what creates prosperity is that countries need to put into place institutions that create conditions for growth such as rule of law, property rights, and a supportive business environment. Foreign aid will not be effective unless it is driven by local initiative where people are identifying their own problems and contributing to the solutions themselves. We also know that private philanthropy is often delivered more efficiently through the use of volunteers and local human resources versus expensive consultants.
Q [Peter2]: Many people in the third world believe that rich countries use aid as a way of taking control of the poor nations. They argue that it is another way to colonization. What is your comment on this? Peter Nyanje, Tanzania
A [Carol Adelman]: Your point is well taken. There are serious questions about governments and multilateral organizations coming in with "one size fits all" programs that may or may not be relevant to a developing country's priorities. The U.S. Government does not use aid to try to take control of poor nations. However, since the money comes from the U.S. taxpayer, the Government needs to ensure that it is well spent so there needs to be accountability. In actuality, foreign aid from all donor countries is, on average, a small percent of the Gross National Income of developing countries. The vast majority of outside funding comes from private sources, including investment capital, philanthropy and remittances from migrants sending money back home. This funding is given more directly to private citizens and institutions in developing countries, hopefully empowering people to make their own choices and improve their own lives on their terms.
Moderator: If you are interested in the topic of this webchat you may want to also visit the USINFO webpage on Global Development and Foreign. You can find that website by following this link: http://usinfo.state.gov/ei/economic_issues/global_development.html.
Q [doaa2]: What is the aid of USA to Egypt and its role in the development of the economics of Egypt?
A [Carol Adelman]: Traditionally, U.S. economic aid to Egypt has been in support of infrastructure projects such water and sewage, electricity, and power. Other projects have supported maternal child health, family planning, education and agriculture. While many of these projects have helped Egyptians, economic growth comes from within - through the policies governments put in place to support open markets and open societies.
Moderator: Chat participants, we see your questions coming in. Please be patient as Dr. Adelman attempts to answer all of them.
Q [CHPStar]: I am a new planner from Indonesia. In my rank as national planner, I am preparing a capacity building to improve our pillars:
1. Planning Education: Support the mission of Indonesian Rectors Forum
2. Planning Process: Promoting the importance of Public and Private Partnerships to produve intellectual property development
3. Professional Society: Developing the roles of Indonesian Government Planners Association
4. Cooperative Networking: Will you support us to developed E-Planning Public and Private Partnerships?
Our mission to increase the competency of Local, Sectoral, National and International Planners.
Yours in Cooperation
Tjahjokartiko Gondokusumo
Carol Adelman: Planning is important for all endeavors. What we have found important to successful programs is to ensure that the people you are helping have real input and real decision-making power. This is called participatory planning. Rather than a top-down approach in planning, you will get better information and local support through grass roots methods. Public private partnerships are a good way for governments to successfully plan and fund local initiatives. In this way, government funding can be mixed with the time and money of local private groups, further ensuring that the project will last.
Moderator: To find out more information about United States aid to specific countries please visit http://www.usaid.gov/ and use the country locator on the right-hand side of the webpage to select the country of interest. For example, selecting Egypt will send you to this helpful site: http://www.usaid.gov/locations/asia_near_east/countries/egypt/.
Carol Adelman: I have enjoyed this web chat with so many interesting people throughout the world. The developing world has changed dramatically since foreign aid began over 50 years ago. Now, there are more trained people in the workforce, more private investment, and greater prosperity in general. Government foreign aid needs a new business model to work in this dynamic environment. The new business model must work more in partnership with developing countries and private institutions, responding to their priorities. At the Center for Global Prosperity at the Hudson Institute, we document these changes and the exciting new types of development partnerships occurring throughout the world. Each year we publish the Index of Global Philanthropy which identifies the new sources of assistance for partnering with local people and institutions in the developing world. You can download the Index at our website at http://www.global-prosperity.org.
Thank you, once again, for submitting such excellent questions. We wish you continued prosperity! Carol Adelman
Moderator: We wish to thank Dr. Carol Adelman for joining us today. The webchat is now closed. We apologize if we were not able to get to everyone's questions. Please visit our USINFO Webchat Station homepage for more information on upcoming events and a transcript of today’s discussion (usually posted within one business day).
(Guests are chosen for their expertise. The views expressed by guests are their own and do not necessarily reflect those of the U.S. Department of State.)
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(Distributed by the Bureau of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)
