A Strategy for Economic Growth
11. In Conclusion
This strategy has highlighted the profound and wide-ranging benefits – to the U.S. and to the world - of achieving more rapid, more sustained, and more broadly based economic growth in poor countries.
Burdensome and corruption-prone systems of regulation, weak property rights, and other microeconomic manifestations of poor economic governance are emerging as the binding constraints to growth in a wide range of countries. USAID is well-positioned to respond. Its strong private-sector orientation, in-country staffs, its ability to field long-term teams, and its flexibility all contribute to USAID’s effectiveness in this key area of economic reform.
For the United States to take advantage of these strengths, USAID’s economic growth efforts must receive adequate funding and the flexibility to apply financial and human resources where they can do the most good. On the financial side, this means allowing and encouraging USAID field offices – especially those in countries funded out of the Development Assistance account – to devote a larger share of their country budgets to spurring economic growth. On the personnel side, it requires greater scope to hire highly qualified, experienced economic growth professionals.
The Framework for U.S. Foreign Assistance provides the opportunity to recommit USAID to promoting economic growth in the developing world – the only route for developing countries to eliminate extreme poverty and generate the domestic resources needed to address their own development challenges. This Strategy establishes the basis for setting priorities within the Framework so that USAID’s economic growth programs will have the greatest impact. Through increased support for systemic and catalytic change in the economies of partner countries, and with adequate funding and technical staff, USAID can multiply the results of its work and help much larger numbers of people in partner countries secure a better future. In an interdependent world, a better future for the people of developing countries means a more secure future for us all.
Figure 1: Framework for Economic Growth
|
