Commentary Magazine


Topic: USAID

Fayyad and the Failure of U.S. Foreign Aid

The departure of Salam Fayyad from the Palestinian government presents an easy trap for outside observers to fall into: because nothing much will change once he’s gone, it will be assumed that nothing much would have changed had he stayed. That may be true, but American officials would be gravely mistaken to believe it was inevitable.

In truth, the great tragedy of “Fayyadism”–technocratic reform and the building of functional state institutions–is not that it failed but that it never existed. As Nathan Brown wrote for his report on Fayyadism for the Carnegie Endowment, state building under Fayyad was a mirage. Brown’s report has been widely cited ever since, but it’s worth pointing out the part of Brown’s diagnosis that was so widely ignored in favor of blaming only Israel or PA factional politics. Brown wrote:

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Iraqis Ask: Why Didn’t USAID Do That?

The Bush administration’s decision to oust Saddam Hussein involved not one choice, but rather four:

  • First, the decision to use military force against Iraq
  • Second, the decision to occupy Iraq rather than to oust Saddam and leave as many Iraqis had advised.
  • Third, the decision to aim for democracy rather than install a general as a new dictator;
  • And, fourth, the decision to reconstruct and develop Iraq.

The first and third choices George W. Bush made were wise; the second and fourth were not. The occupation of Iraq—pushed at the policy level by those who believed the U.S. would have more influence to shape governance with boots on the ground rather than by working to form a coherent coalition prior to the invasion—was disastrous. Once the Americans established themselves in Baghdad, mission creep cost billions of dollars and thousands of lives. Few USAID and Coalition Provisional Authority projects had any discernible impact; to this day, Iraqis identify conversion to a new currency as the only truly successful American project beyond ousting Saddam.

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Life Returning to Normal in Baghdad

It has been almost ten months since the last U.S. troops departed Iraq. Many Iraqis—including many in the Iraqi government—had hoped American forces would stay in one form or another, but as some Iraqi government advisors have made clear in informal chats with me, it was obvious that President Obama and Secretary of State Clinton would not take “yes” for an answer when they asked if an agreement was possible.

So how goes life in Iraq? It has been a couple years since I have been to either southern Iraq or northern Iraq but, by all accounts, both are booming, in the figurative rather than literal way. Basra’s new governor has been, according to many Iraqis with whom I have spoken, a breath of fresh air. Investment continues in Basra, Najaf, and their environs. Oil wealth is sparking real estate investment, the hotel and tourist sector, and leading Iraqis to invest in automobile dealerships, among other businesses.

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U.S.-Russia Relations Keep Plummeting

Now that Moscow has expelled USAID from Russia and announced it will not renew one of the pillars of U.S.-Russia post-Soviet cooperation–the Nunn-Lugar Cooperative Threat Reduction Program–the Obama administration and other disappointed actors will be looking for a silver lining.

At least the Obama administration can take solace in the fact that while Putin is thoroughly dedicated to publicly and without consequence bullying Obama in the last month of the presidential election, he isn’t only isolating the U.S. As usual, Putin reserved some of his ire for NATO as well. Reuters reports:

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To Save Aid, Cut Aides

Max Boot last month argued that the State Department and USAID should largely be spared budget cuts. That may be true of the State Department, although (like the Pentagon), the Department has layers of bureaucratic fat and unnecessary positions. Various undersecretaries, for example, have their own press advisers, a wholly unnecessary position that not only might come with a six-figure salary, but also can run up hundreds of thousands of dollars each in flight, hotel, and benefit cost. Simply put, if a Foreign Service officer or a political appointee is smart enough to become an undersecretary, then they should be smart enough to handle their own press. And if they are not up to the task, there are dozens of ambitious diplomats or politicos who probably are. This might, indeed, make for more skilled diplomats because it would benefit those who have a broader array of experiences than simply passing a “trivial pursuit”-like written exam and then a contrived oral exam upon leaving college and entering the State Department’s bubble. It would enable those who have backgrounds in business or law, for example, to apply a skill set to their careers which would benefit everybody.

To be fair, the same is true for the Pentagon. Last month, I attended a conference in Europe in which a senior U.S. general spoke. The general was worth his stars, but came to Europe from Washington with a delegation of aides and assistants whose sole mission was to ensure that the general hewed close to a script which they developed. “We don’t want him to make any comment which the press might pick up on,” one explained. Now, these aides duplicated the work of the defense attaché and American embassy which was also working overtime to babysit the three-star. Surely, there are better uses for taxpayer money than hiring press aides and minders whose sole job is to obfuscate and do damage control. If a general is able to navigate the politics of the Pentagon, then he can understand the minefield of the fourth estate without spending millions of dollars to ensure that he says nothing.

Where’s the “Made in America” at USAID?

The State Department laid out an ambitious budget for the forthcoming year and, on Wednesday, Rep. Steve Chabot, chairman of the House Foreign Affairs Subcommittee on the Middle East and South Asia, held a hearing to discuss U.S. assistance. Among those testifying was Mara Rudman, the assistant administrator for the United States Agency for International Development (USAID) Middle East bureau. While Rudman might brag about the supposed achievements of USAID, few aid organizations are so inefficient and self-defeating.

Take branding: Throughout the Middle East, especially in areas where anti-American sentiment is especially strong, the USAID refuses to put the USAID logo on its projects. To do so might lead insurgents to target USAID-funded schools, wells, or medical clinics. The problem is that skipping branding reduces to almost zero the benefit of the project. The goal of U.S. aid should not altruistic, but rather to bolster U.S. interests and influence. Diplomats talk about the need to win hearts and minds, but the multibillion dollar organization at the forefront of the battle too often surrenders before the fight. Nothing is more frustrating than to drive around Iraq and Afghanistan, seeing signs crediting Japan, Kuwait, the Badr Corps’ Shahid al-Mihrab Foundation or the Imam Khomeini Relief Committee for visible projects—gardens in traffic circles; housing projects; clinics; and electrical substations—but see no branding for USAID.

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