Extending the American Revolution Overseas: Little-known Origins of
Extending the American Revolution Overseas: Little-known Origins of U.S Foreign Assistance and Lessons for Today Part II: 1950 - 2015 JOHN A. SANBRAILO EXECUTIVE DIRECTOR PAN AMERICAN DEVELOPMENT FOUNDATION USAID ALUMNI MEETING January 23, 2015 1 History Matters
Lessons from the Past Achievements & Shortcomings Identify Patterns & Trends Guide Policy & Programming History defines us (or history is bunk) Means not an end Great & Inspiring Story 2 History Matters Rajiv Shah USAID Administrator WE NEED TO ADOPT LESSONS FROM OUR OWN HISTORY TO BEND THE CURVE OF PROGRESS AND FOSTER A SPIRIT OF ENTREPRENEURISM AND INNOVATION USAID Frontiers in Development September 2013 3
Agenda Why USAID? Vision for USAID John Kennedy in his words Evolution of USAID (1961 2015) Telling the USAID story USAID Legacy 4 Foreign Aid History Founding Fathers 19th Century Advocates Progressive Reformers (1900-1930) New Deal Innovators (1930s-1940s) Majestic Moment(1940s & 1950s) USAID & others (1961-2015) 5 Foreign Aid: 1940s
MAJESTIC MOMENT WW II & COLD WAR TRANSITION Four Freedoms & Atlantic Charter Export Import Bank Lend Lease & BEW/ECA Institute for Inter-American Affairs (IIAA) Brenton Woods & UN Institutions Truman Doctrine: Aid to Greece-Turkey (ECA) Marshall Plan Europe (ECA) Dodge Plan Japan (military/ECA)
Point Four: Underdeveloped countries (TCA) 6 Franklin Roosevelt Four Freedoms Overseas 1941 Franklin Roosevelt 1882-1945 Four Freedoms 7 New Deal Innovators 1940s Harry Hopkins 1890-1946 Henry Wallace
Guy Rexford Tugwell Harry Dexter White 1888-1965 1891-1979 1892-1948 Nelson Rockefeller Paul G. Hoffman Averell Harriman David Lilienthal 1908-1979 1891-1974
1891-1986 1899-1981 8 Post-World War II Foreign Aid Advocates 1945-1950 George Marshall 1880-1959 Harry Truman Douglas MacArthur Will Clayton 1884-1972
1880-1964 1880-1966 Paul G. Hoffman Richard Bissell Nelson Rockefeller 1891-1974 1909-1994 1908-1979 Benjamin Hardy 9 1906-1951
Development Loan Fund (DLF) NGOs & Contractors 10 Why USAID? 1958-1961 Cold War Tensions & Cuban Revolution Sense of crisis: One Minute to Midnight Third World as ideological battleground Criticism of aid fragmentation & Ugly American New Approaches to Development-Modernization Election of John Kennedy & Inaugural Address Kennedys view of State Department New aid instruments to fight cold war & support decade of 11 development (USAID, Peace Corps, IDB, PADF) NEW DEVELOPMENT IDEAS 1960s
Raul Prebisch 1901-1986 Eugene A. Staley Walt Rostow Albert Hirschman 1916-2003 1915-2012 1907-1989 Charles River Group of Economists 12 Foreign Aid: 1960s BIRTH OF USAID
KENNEDYS DEVELOPMENT APPROACH Consolidate Aid (grants-loans) in new Agency (USAID) Replicate Marshall Plan - Puerto Rico (ECLA model) Country Programming - National Planning (program loans) Structural Reforms (land, tax, industry, labor, housing, basic needs) Economic Growth (through policy-structural reforms & private sector develop.) Meet Basic Needs (land, work, homes, education, health) Democratic Nation-Building (public administration, grassroots organ.) Counterinsurgency (public safety, civic action, CORDS)
Field Missions & Country Team Approach Multilateral Review of Country Plans (OAS & Wise Men)13 Alliance for Progress Beginnings of USAID 1961 - 1963 https://www.youtube.com/watch?v=7Co6rjlprsg 14 Foreign Aid:1961-2015 USAID History 1960s: Alliance for Progress & Decade of Development 1970s: New Directions & Basic Human Needs 1980s: Market-Trade Reforms & Democracy Promotion 1990s: Fall of Communism & Sustainable Development 2000s: War on Terror/Drugs, MDGs, HIV/AIDS, PMI 2011-2015: USAID Policy Framework & New Initiatives 15
TELLING USAID STORY Different Approaches Top-Down: (Policies, Reforms, Budgets, FAA, Administrators) Bottom-Up: Missions (focus on shop-floor) Development Ideas & Strategies Sectors & Projects (50 years of USAID) Regions & Countries (Follow the money) Others (USAID milestones & leaders) 16 USAID Legacy 1961-2015 Transferred $500 billion+ (development inputs) Outputs Alleviated Poverty (for hundreds of millions) Promoted economic growth Pioneered new development-democracy approaches (policies, programs, methodologies, strategies)
Established-Strengthened Institutions (public-private sectors) Generated-Disseminated new technologies (green revolution, ORS therapies, non-formal education, micro-finance, policy dialoguing-institution building processes) 17 1961-2015 USAID Legacy Outputs (cont.) Aided victims of natural disasters & humanitarian crises Managed transnational challenges(famines, HIVAIDS) Disseminated aid best practices to donors Nation-building successes (Taiwan, S.Korea, DR, El Sal, Colombia) & shortcomings (Vietnam, Haiti, Liberia, Iraq, Afghanistan) Extended American developmentdemocracy values overseas (in support of foreign policy)
18 Conclusions Foreign Aid deeply rooted in American history Inspired by principles of American Revolution Mixture of idealistic/realistic impulses in foreign policy Lessons from 200+ years of spreading democracy & development around the world USAID 50+Years largest and most important To know what we have done is to know who we are 19 Recommendations Recognize History Matters Build a learning organization on lessons from past Establish USAID Office of the Historian Place foreign aid policies/programs/reforms in historic context Develop lessons learned in systematic manner Draw on past to guide programming/training 20
Annex One Telling USAID Story 1961 2015 USAID Field Missions (bottomup approach) Development Ideas & Strategies Sectors & Projects (50 years of USAID) Regions & Countries (Follow the money) Milestones in USAID History Others 21
USAID Field Missions Bottom-up approach Country Studies 1960s-2010s Successes: Taiwan, South Korea, Chile, DR, Costa Rica, El Salvador, Colombia, EE countries, etc. Less Successful: Vietnam, Liberia, Haiti, Nicaragua, selected African-Middle Eastern countries Country Studies: Prepared by USAID Missions & others Others:
(e.g. Secret Successes of USAID by Michael Pillsbury; Real Progress: Fifty Years of USAID in Costa Rica by Jim Fox; History of USAID Bolivia-Larry Heilman; History of USAID Ecuador-John Sanbrailo, Sam Butterfield book, EE Study, 50 Years of USAID: Stories from the Front Lines, etc.) 22 Development Ideas 1960s 2010s 1960s: The Stages of Economic Growth: A non-communist manifesto Walt Rostow, Political Order in Changing Societies & Foreign Aid: For What and For Whom Samuel Huntington 1970s: Development Reconsidered: Bridging the gap between government and people Edgar Ted Owens & Robert Shaw; Small is Beautiful: Economics as if People Mattered E.F. Schumacher
1980s: Free To Choose & Capitalism and Freedom Milton Friedman & privatization literature 1990s: The End of History and the Last Man, Francis Fukuyama & Sustainable Development literature (the Club of Rome, Barbara Ward) 2000s: The Clash of Civilizations and the Remaking of World Order Samuel Huntington & End of Poverty: Economic Possibilities for Our Time Jeffrey Sachs, Economic Growth literature (William Easterly, Benjamin Friedman) 2010s: Governance literature (Political Order and Political Decay: From the Industrial Revolution to the Globalization of Democracy Francis Fukuyama
23 Development Strategies 1960s 2010s 1960s: Comprehensive National Development & Counterinsurgency (DR-Vietnam-others) 1970s: New Directions: Focus on Rural Poor & Family panning 1980s: Shift to Market-driven Development (exportsinvestment-democracy promotion) 1990s: Support EE Transitions to Market Economies/Democracy & Sustainable Development 2000s: Support War on Terrorism/Drugs. MDGs. HIV/AIDS, Nation-Building, Democracy, etc. 2010s: End extreme poverty, promote resilient democracies, advance human dignity
24 Sectors & Projects 1960s 2010s 1960s: Policy reform for growth, industrial develop/PS, land reform, housing, basic needs, etc. 1970s: Rural poverty alleviation: agriculture, health, education, family planning, etc. 1980s: Policy reform for growth, trade-investment-free markets, promotion, strengthen democracy, etc. 1990s: Transition free markets-democracy & sustainable development 2000s: Nation-building, combat drug trafficking, MDGs,
HIV/AIDS, growth-democracy promotion, etc. 2010s: Ending extreme poverty & promoting resilient democracies, etc. 25 Regions & Countries Follow the money 1960s 2010s 1960s: Latin America & Vietnam 1970s: Vietnam & Shift to Africa Israel-Egypt 1980s: Israel-Egypt, Caribbean, Central America, Africa 1990s: Eastern Europe, Russia, Israel-Middle East, Haiti 2000s: Iraq, Afghanistan, Pakistan, Middle-East, Eastern Europe, Colombia, Africa, Mexico 2010s: Israel, Afghanistan, Pakistan, Iraq, Egypt, Jordan, African counties, Mexico 26
Milestones USAID History 1959-2000 1959: 1960: 1961: 1965: 1971:
1973: 1979: 1980: 1989: 1990s: Triumph of Cuban Insurgency Election of President John Kennedy Establishment of USAID, Peace Corps, IDB Escalation of Vietnam War Establishment of OPIC New Directions legislation Camp David & Middle-East Peace Accords Election of President Ronald Reagan Fall of Berlin Wall & Collapse of Communism Downsizing of USAID & Erosion of USAID development leadership 27 Milestones (CONT.)
USAID History 2001-2011 2000: Election of President George W. Bush 2001: Sept. 11 & War or Terror 2003: Invasion of Iraq & Afghanistan 2000s:
Large aid increase & proliferation 2003-2005: Establishment PEPFAR, MCC, PMI 2006: Creation of State F Bureau 2010: QDDR & Integration into State 2011: 50th Anniversary of USAID 2011-2015: New Initiatives & Whole of Government 2014-2015: Reform Agenda 28 Annex Two Foreign Aid History 1789-1950 Founding Fathers 19th Century Advocates Progressive Reformers (1900-1930) New Deal Innovators (1930s-1940s)
Majestic Moment(1940s & 1950s) USAID & others (1961-2015) 29 Foreign Aid Origins Foreign aid as we know it began as an instrument of Cold War diplomacy. Without the Cold War, aid would likely not exist today.. Carol Lancaster Foreign Aid: Diplomacy, Development Domestic Politics (2007) Foreign aid is an expression of the American revolutionary tradition and Americas revolutionary mission in the world. Gordon Wood, Why America Wants to Spread Democracy Around the World (2011) 30
Majestic Moment Foreign Aid Begins 1940s Bretton Woods System (IMF, IBRD, GATT) Other Multilaterals (UN,WHO, FAO) Truman Doctrine: Aid to Greece & Turkey (ECA) Marshall Plan/Europe (ECA) Dodge Plan/Japan (military/ECA) Point Four: Underdeveloped Countries (TCA) Export-Import Bank: Financing Development 31 Development Philosophers Founding Fathers Thomas Jefferson Alexander Hamilton
Benjamin Franklin 32 Founding Fathers American Development Ideas Observations Concerning the Increase of Mankind & Peopling of Countries(1751) & others Benjamin Franklin Declaration of Independence (1776) Notes on the State of Virginia (1785) Thomas Jefferson Federalist Papers (1788) & Constitution (1789) Report on Manufactures (1791), Alexander Hamilton 33 Echoing Jefferson this ball of liberty will bounce around the world
(1789) Foreign Aid: 21st Century .our individual freedom is inextricably bound to the freedom of every soul on Earth. We will support democracy from Asia to Africa; from the Americas to the Middle East, because our interests and our conscience compel us to act on behalf of those who long for freedom. Barack Obama January 2013 ..the survival of liberty in our land increasingly depends on the success of liberty in other lands George W. Bush January 2005 34
Foreign Aid Pioneers 1800-1930 Joel R. Poinsett 1779-1851 Henry Clay Henry Carey James Blaine 1777-1852 1793-1879 1830-1893 Walter Reed
Leonard Wood Herbert Hoover Edwin Kemmerer 1851-1902 1860-1927 1874-1964 1875-1945 35 Foreign Aid 1790s-1890s 1789:
Jefferson & Lafayette in France (promoting democracy) 1794: Haitian Refugees & Haitis Constitution (1800) 1810s: Chilean independence & Venezuelan earthquake victims (1812) 1819: Establishment of Liberia 1820s: Greek independence (Greek Fever) & Mexican democracy 1848: Response to Irish Famine
1862: Aid to English textile workers (Cotton Famine) 1870s: Japanese nation-building, Franco-Prussian War, Cen.Am., Centennial Exposition (1876) & Grants visit to Japan (1879) 1890s: Inter-American Cooperation & Chicagos World Fair (1893) 1880-90s: Ireland, Russia, India, Armenia, Cuba 36 Foreign Aid Rejected A Connecticut Yankee in King Arthurs Court 1889
Mark Twain 1835-1910 37 Foreign Aid Initiatives 20th & 21st centuries 1900s-1920s: Yellow Fever, Nation-Building & Making World Safe for Democracy 1910s-1920s: Food Aid WW I & Assistance to Russia-Eastern Europe 1910s-1920s: Democracy, Famine Relief, Financial Reforms 1930s-1940s:
Aid to Latin America and the Caribbean . 1940s-1950s: Ex-IM Bank, Lend-Lease, IIAA, ECA, Marshall Plan, Dodge Plan, Point Four, TCA, ICA, DLF, PL-480 1960s-1990s: USAID support of Cold War 2000s-2010s: War on Terror/Drugs/MDGs: USAID, PEPFAR, MCC, PMI, DOS & F Bureau, DOD, DOT, others38 Foreign Aid From WW II to Cold War 1940s WW II
Post-War Atlantic Charter (1941) Bretton Woods (1944) US Exim Bank IMF/ IBRD Inter-American System UN/WHO/FAO Lend-Lease/BEW Marshall Plan/ECA (ARA) IIAA (1942-49) Point Four/TCA (1950s) US Exim Bank Exim-DLF (1950s) 39
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