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April 20, 2015

Advocacy for Improved or Increased U.S. Foreign Aid

Editor’s note: This article was published under our former name, The Open Philanthropy Project. Some content may be outdated. You can see our latest writing here.

This is a writeup of a shallow investigation, a brief look at an area that we use to decide how to prioritize further research.

In a nutshell

What is the problem?

U.S. development assistance achieves less for beneficiaries than it conceptually could, due both to relatively poor cost-effectiveness and to limited funding.

Who is already working on it?

There are a variety of organizations working to improve or increase U.S. development assistance, with support from a number of foundations. We would guess that total philanthropic funding for this field is in the ballpark of $100 million/year.

What could a new philanthropist do?

A philanthropist could support a wide variety of advocacy efforts, ranging from grassroots organizing to lobbying to think tank research, aiming for more or better foreign aid. We do not have a good sense of the track record of or likely returns to these activities.

What is the problem?

Official development assistance from the United States achieves less benefit for beneficiaries than it conceptually could.[1]We believe this to be a nearly universal view in development circles, but are not aware of an authoritative source that could reliably measure aid effectiveness. The U.S. has performed poorly on existing efforts to rate the quality of aid. See, for instance: Easterly and Williamson 2011: “The … Continue reading Opportunities for improvement could take the form of fiscally neutral improvements in the effectiveness of aid delivery (quality), or more aid (quantity). Quality improvements could be important in humanitarian terms, as the U.S. is the single largest provider of bilateral development aid, giving roughly $30 billion/year.[2]

According to the OECD, the U.S. gave $30.8 billion of Official Development Assistance in 2012, more than any other bilateral funder. OECD 2012

 

We would guess that increasing the quantity of altruistically motivated (as opposed to merely self-interested) official development aid would be welfare-improving from a global perspective because we believe that altruistically motivated aid is likely to have larger net positive effects in recipient countries than costs for sending countries. However, we do not believe there is rigorous evidence on the impact of altruistically motivated government aid, and some prominent development scholars disagree that more official aid is likely to be strongly welfare-improving.[3]For instance, William Easterly, author of The White Man’s Burden: Why the West’s Efforts to Aid the Rest Have Done So Much Ill and so Little Good, and Angus Deaton, author of The Great Escape: Health, Wealth, and the Origins of Inequality, have questioned the effectiveness of government aid as … Continue reading Were the U.S. to provide the same level of aid proportional to GNI as the United Kingdom, aid spending would rise to ~$90 billion/year.[4]The US currently gives about $30 billion in aid per year, 0.19% of the US’s GNI. The UK gives 0.56% of its GNI in aid. If the US gave 0.56% of its GNI as aid, it would give about $30 billion * (0.56%/0.19%) = $88 billion. OECD 2012. Some other European countries, such as Denmark, the Netherlands, … Continue reading

Who is already working on it?

The advocacy group ONE, which predominantly but not exclusively focuses on the U.S., appears to be the largest advocate for more and better foreign aid, with a (global) annual budget of roughly $30 million.[5]“ONE is the clear leader in the advocacy space, both nationally and globally. It grew very fast for a number of years and has plateaued recently, with a budget size of roughly $30 million dollars and around 160 staff. The policy team has about 20 staff and is grouped into thematic … Continue reading Other groups that do considerable advocacy or lobbying in favor of foreign aid programs include:

  • RESULTS (2011 501c3 spending: ~$9 million; 501c4 spending: ~$200,000)[6]RESULTS 501(c)(3) IRS Form 990RESULTS 501(c)(4) IRS Form 990 Summary
  • Bread for the World (2011 501c3 spending: ~$9 million; 501c4 spending: ~$4 million)[7]Bread for the World 501(c)(3) IRS Form 990Bread for the World 501(c)(4) IRS Form 990
  • Friends of the Global Fight (2011 501c3 spending: ~$2 million)[8] Friends of the Global Fight 501(c)(3) IRS Form 990
  • US Global Leadership Coalition (2011 501c3 spending: ~$4 million; 501c4 spending: ~$1 million)[9]US Global Leadership Coalition 501(c)(3) IRS Form 990US Global Leadership Coalition 501(c)(4) IRS Form 990
  • Large international NGOs like Oxfam and CARE that conduct some advocacy efforts in the U.S. and other high-income countries. We aren’t sure what portion of their funding goes to advocacy efforts.[10] Oxfam America Advocacy FundCARE Advocacy

There are also a number of organizations that advocate for international aid on specific issues, such as a particular disease. We have not tried to systematically survey such organizations. A number of U.S. think tanks also work on issues around foreign aid, including:[11]“CGD and ONE are unique in Washington, DC in that they cut across the field of development policy broadly. International Budget Partnership, which focuses on international budget transparency, and Publish What You Pay, which focuses on aid transparency, are interesting niche players in the … Continue reading

  • Center for Global Development
  • Brookings Institution
  • Center for Strategic and International Studies (CSIS)

We believe the Center for Global Development, which focuses solely on development issues and has an annual budget of roughly $10 million, does more work on foreign aid than Brookings or CSIS does, but we have not seen figures that would allow us to make this comparison.[12] Center for Global Development 501(c)(3) IRS Form 990 Major philanthropic support for advocacy and research related to foreign aid comes from the Gates Foundation and the Hewlett Foundation, which have each made sizable grants to both ONE and CGD.[13] Gates Foundation grant to the One CampaignGates Foundation grant to the Center for Global DevelopmentHewlett Foundation match for gifts to the Center for Global DevelopmentHewlett Foundation grant to the One Campaign We have not systematically searched for other foundation efforts in this area. In addition to funding advocacy groups such as ONE, we also believe that the Gates Foundation has played a role in directing aid agency funds through its role in the creation of and support for vehicles like the Global Fund and GAVI.[14]“1998 proved to be an important year for global immunization. In March, the President of The World Bank Mr James D Wolfensohn convened a ‘World Bank Summit’ in an attempt to bring to the table all parties interested in revivifying EPI and getting universal childhood immunization back on … Continue reading 

Not counting the Gates Foundation’s contributions to the Global Fund or GAVI, we would guess that total philanthropic funding for this field is in the ballpark of, but probably less than, $100 million/year.

What could a new philanthropist do?

Advocacy to improve or increase U.S. foreign aid could take a number of forms, including:

  • Think tank-style research and outreach (e.g. the Center for Global Development)[15] Center for Global Development Homepage
  • Improving the amount or kind of media coverage of development or aid issues
  • Media-savvy mass outreach and lobbying efforts (e.g. ONE)[16] ONE Homepage
  • Grassroots organizing (e.g. RESULTS)[17] RESULTS Homepage
  • Co-funding an international aid organization to attract funding from governments (e.g. the Gates Foundation’s funding for GAVI and the Global Fund)[18]“1998 proved to be an important year for global immunization. In March, the President of The World Bank Mr James D Wolfensohn convened a ‘World Bank Summit’ in an attempt to bring to the table all parties interested in revivifying EPI and getting universal childhood immunization back on … Continue reading

Specific philanthropic opportunities might range from general support for one or more of these approaches or organizations (e.g. funding RESULTS’ expansion to additional districts where it is not currently represented)[19]“RESULTS seeks to expand its work to cover more geographies and more members of Congress,. It currently has a presence in around 40 states. In small states, citizens can have a disproportionately large impact because they are more likely to have contact with their representative and senators. It … Continue reading to specific programmatic support for work on a particular proposed reform (e.g. think tank work on additional funding for electricity infrastructure in Africa, grassroots organizing to support the Global Fund replenishment).[20]“The impetus for what became Power Africa came about when Michael Froman – who is now US Trade Representative, but at the time was President Obama’s principal economic advisor at the National Security Council – took a trip to Africa with Gayle Smith, Obama’s chief development advisor. … Continue reading

What has the track record of past advocacy efforts been?

We have heard or read about a number of claimed foreign advocacy success stories, though we are not aware of any cases of policy changes that are unambiguously attributable to efforts on behalf of advocacy organizations. A very incomplete list of some fairly recent claimed successes by foreign aid advocacy groups includes:

  • Efforts by ONE and the Center for Global Development to shape President Obama’s recent Power Africa initiative.[21]“The impetus for what became Power Africa came about when Michael Froman – who is now US Trade Representative, but at the time was President Obama’s principal economic advisor at the National Security Council – took a trip to Africa with Gayle Smith, Obama’s chief development advisor. … Continue reading (The Power Africa initiative includes more than $7 billion in financial commitments over several years, though the large majority of the commitments take the form of loans rather than grants).[22]“The United States will commit more than $7 billion in financial support over the next five years to this effort, including: The U.S. Agency for International Development (USAID) will provide $285 million in technical assistance, grants and risk mitigation to advance private sector energy … Continue reading
  • Re-authorization of the President’s Emergency Plan for AIDS Relief (PEPFAR), a multi-billion dollar aid program, in 2008.[23]“RESULTS has had a number of successes in recent years, including the reauthorization of PEPFAR in 2008. The PEPFAR reauthorization was a legislative process rather than a presidential budget request. RESULTS worked on that bill, especially on the tuberculosis section, which has proved crucial to … Continue reading
  • Multi-billion dollar U.S. commitments to the Global Fund and GAVI Alliance.[24]“RESULTS has had a number of successes in recent years, including the reauthorization of PEPFAR in 2008. The PEPFAR reauthorization was a legislative process rather than a presidential budget request. RESULTS worked on that bill, especially on the tuberculosis section, which has proved crucial to … Continue reading
  • Significant advanced market commitments from Canada for new vaccines.[25]“CGD’s work on the vaccines initiative helped put the issue on the international agenda at the 2006 G8 meeting. CGD provided intellectual leadership, a platform for multi-stakeholder engagement, and effective promulgation of a draft plan to address a global failure of the public-health market. … Continue reading
  • A major 2006 debt-relief deal for Nigeria.[26]“CGD can justifiably claim considerable credit for Nigeria’s debt-relief deal. Its work contributed to Nigeria’s landmark 2006 agreement with the Paris Club of creditor nations to reduce its debt burden. This view is widely held among Nigerian officials, debt-relief advocates, and some … Continue reading

We have not investigated any of these claimed successes in sufficient depth to feel confident that the advocacy groups involved played a causal role, but the returns on investment if these represent true cases of advocacy impact would likely be very large.

Questions for further investigation

Our research in this area has been relatively limited, and many important questions remain unanswered by our investigation. Amongst other topics, further research on this cause might address:

  • In which cases can claimed success stories be confidently attributed to the efforts of one or more advocacy groups?
  • How would additional funding translate into additional advocacy efforts? To what extent is funding the bottleneck to advocacy success on foreign aid issues?
  • How do the likely returns to advocacy efforts in the U.S. compare to likely returns in other high-income countries?
  • Would it be better to focus on other policy issues in high-income countries instead of improving or increasing foreign aid? Should a philanthropist focus on other policy issues in low-income countries instead of focusing on aid?

Our process

We decided to investigate this area because we believe that advocacy to improve or augment U.S. foreign aid could conceptually have high returns relative to direct service efforts like our top charities. We spoke to three individuals with knowledge of the field, including:

We also conducted some limited desk research on the size of some of the organizations involved in advocacy related to U.S. foreign aid.

Sources

DOCUMENT SOURCE
Birdsall and Kharas 2010 Source
Bread for the World 501(c)(3) IRS Form 990 Source
Bread for the World 501(c)(4) IRS Form 990 Source
CARE Advocacy Source
Center for Global Development 501(c)(3) IRS Form 990 Source
Center for Global Development Homepage Source
Center for Global Development: Evaluation of Impact Source
Easterly and Williamson 2011 Source
Fact sheet: Power Africa Source
Friends of the Global Fight 501(c)(3) IRS Form 990 Source
Gates Foundation grant to the Center for Global Development Source
Gates Foundation grant to the Global Fund Source
Gates Foundation grant to the One Campaign Source
Hewlett Foundation grant to the One Campaign Source
Hewlett Foundation match for gifts to the Center for Global Development Source
Knack, Rogers, and Eubank 2011 Source
Nossal 2003 Source
Notes from a conversation with Ben Leo on September 3, 2013 Source
Notes from a conversation with John Fawcett on September 3, 2013 Source
OECD 2012 Source
ONE ACTION 501(c)(4) IRS Form 990 Summary Source
ONE Homepage Source
ONE IRS Form 990 2011 Source
Oxfam America Advocacy Fund Source
RESULTS 501(c)(3) IRS Form 990 Source
RESULTS 501(c)(4) IRS Form 990 Summary Source
RESULTS Homepage Source
State and USAID – FY 2013 Budget Fact Sheet Source
The One Campaign 501(c)(3) IRS Form 990 Source
US Global Leadership Coalition 501(c)(3) IRS Form 990 Source
US Global Leadership Coalition 501(c)(4) IRS Form 990 Source

 

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