Improving Foreign Assistance Management

U.S. foreign assistance programs have been fragmented across the vast array of development and humanitarian activities administered by the Department of State, USAID, and numerous other agencies. As a result:

• Some programs are at risk of being ineffective, incoherent, redundant, in conflict with other programs, unaccountable, or not well integrated with broader U.S. foreign policy objectives.

  Highlights of GAO-06-829 (PDF)

In 2006, the Secretary of State announced a major reorganization in U.S. foreign assistance policy, known as transformational diplomacy, and created a Director of Foreign Assistance to concurrently serve as the USAID Administrator.

• The current structure of U.S. foreign assistance continues to risk incoherent policies, ineffective programs, and wasted resources resulting from spending not being strategically tied to overarching U.S. goals.

  Highlights of GAO-09-192 (PDF)

• More coordinated management and human capital planning is needed.

  Highlights of GAO-07-1153 (PDF)

In addition, USAID has shifted from conducting its own activities with U.S. government personnel to managing acquisition and assistance (A&A) instruments—such as contracts, grants, and cooperative agreements—which are generally awarded to and implemented by nongovernmental entities.

• For fiscal years 2002 through 2007, USAID's A&A obligations doubled from about $5 billion to $10 billion.
• USAID's A&A staff are primarily responsible for managing A&A instruments.
• However, USAID lacks the capacity to develop and implement a strategic A&A workforce plan because of limitations in key data on overseas staff levels and competencies.

  Highlights of GAO-08-1059 (PDF)

^ Back to topWhat Needs to Be Done

The Secretary of State, working with all U.S. government entities involved in the delivery of foreign assistance, should take the following steps:

• Develop and implement a comprehensive, governmentwide foreign assistance strategy, complete with goals, time frames, benchmarks, and measures for successful implementation,

  Highlights of GAO-09-192 (PDF)

• Develop and use improved planning, budgeting, and reporting processes for foreign assistance programs, and improve current weaknesses in communications, operational planning, and workforce management.

  Highlights of GAO-09-192 (PDF)

• Establish a time frame for developing and implementing multiyear, country-specific, foreign assistance strategies in all countries where the U.S. government provides assistance.

  Highlights of GAO-09-192 (PDF)

USAID and State should take several actions to improve foreign assistance planning and management, including

• defining the skills and competencies needed to manage foreign assistance responsibilities and developing critical information on staff currently doing so, and developing a strategy to address any identified gaps;

  Highlights of GAO-07-1153 (PDF)

• designating overseas service consolidation a priority and developing a plan for consolidation that details the desired end state as well as defines timelines, performance and accountability measures, and criteria for success;

  Highlights of GAO-06-829 (PDF)

• setting timelines for accomplishing the standardization of relevant agency policies, procedures, and systems.

USAID should also develop and implement a strategic A&A workforce plan that matches resources to priority needs, such as the evaluation of the A&A function. Specifically, the strategic workforce plan should include

Highlights of GAO-08-1059 (PDF)

• a process to collect, analyze, and maintain sufficiently reliable and up-to-date data on USAID's A&A staff levels; and
• comprehensive information on the competencies of the A&A staff.

^ Back to topKey Reports

USAID Acquisition and Assistance

Overseas Presence

Foreign Aid Reform

Department of State

More Reports