Chapter VII. Expand the Circle of Development by Opening Societies and Building the
Infrastructure of Democracy
Section C. The Way Ahead - 2. Making Foreign Assistance More Effective
The Administration has created the new position of Director of Foreign Assistance (DFA)
in the State Department. The DFA will serve concurrently as Administrator of U.S.
Agency for International Development (USAID), a position that will continue to be at the
level of Deputy Secretary, and will have, consistent with existing legal requirements,
authority over all State Department and USAID foreign assistance. This reorganization
will create a more unified and rational structure that will more fully align assistance
programs in State and USAID, increase the effectiveness of these programs for recipient
countries, and ensure that we are being the best possible stewards of taxpayer dollars.
And it will focus our foreign assistance on promoting greater ownership and
responsibility on the part of host nations and their citizens.
With this new authority, the DFA/Administrator will develop a coordinated foreign
assistance strategy, including 5-year, country-specific assistance strategies and annual
country-specific assistance operational plans. The DFA/Administrator also will provide
guidance for the assistance delivered through other entities of the United States
Government, including the MCC and the Office of the Global AIDS Coordinator.
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To ensure the best stewardship of our foreign assistance, the United States will:
· Distinguish among the different challenges facing different nations and address those
challenges with tools appropriate for each country's stage of development;
· Encourage and reward good government and economic reform, both bilaterally and
through the multilateral institutions such as international financial institutions, the
G-8, and the Asia-Pacific Economic Cooperation (APEC);
· Engage the private sector to help solve development problems;
· Promote graduation from economic aid dependency with the ultimate goal of ending
· Build trade capacity to enable the poorest countries to enter into the global trade
· Empower local leaders to take responsibility for their country's development.
Our assistance efforts will also highlight and build on the lessons learned from successful
examples of wise development and economic policy choices, such as the ROK, Taiwan,
Ireland, Poland, Slovakia, Chile, and Botswana.
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