OECD Development Co‑operation Peer Reviews: United States 2022

Annex A. Progress since the 2016 DAC peer review recommendations

Towards a comprehensive United States development effort

 

Recommendations 2016	Progress
To support its commitment to the SDGs, the United States should establish a prioritised, medium- to long-term agenda to further promote policy coherence for sustainable development.	Not implemented There is no long-term agenda to promote policy coherence, but there is some progress in areas such as countering corruption, tackling climate change and global health security (in the wake of the COVID-19 pandemic).
The United States should scale up its tools for mobilising private finance by enabling its development finance instruments to respond to increased demand.	Partially implemented The 2018 BUILD Act established the US International Development Finance Corporation (DFC), which combined the capabilities of the Overseas Private Investment Corporation and the US Agency for International Development’s Development Credit Authority and provided new authorities. DFC is still nascent, and matching financial instruments to US development priorities and partner country needs is not always straightforward.

Vision and policies for development co-operation

 

Recommendations 2016	Progress
Building on PPD-6, the US government should regularly update its whole-of-government development strategy to provide operational guidance for its entire development effort, including its multilateral component.	Not implemented The forthcoming National Security Strategy and integrated global development co-operation policy are expected to implement this recommendation.
The United States should develop an operational plan for implementing its vision to end extreme poverty, building on experience from pilots.	Partially implemented The United States does not have an operational plan or explicit vision statement to end extreme poverty, but USAID’s mission statement refers to partnerships and investments that reduce poverty and its focus on localisation shows a priority to reach those furthest behind.

Aid volume and allocation

 

Recommendations 2016	Progress
To reflect the country’s continued economic recovery and its goal of ending extreme poverty by 2030, the United States should increase its ODA level in real terms, from its all-time high in 2014.	Partially implemented ODA levels increased starting in 2020 after decreasing for three consecutive years, reaching the highest volume ever in 2021. At 0.18%, the ODA/GNI ratio is lower than in 2014 (0.19%).
The United States should continue to increase its focus on sectors and programmes where it has a comparative advantage and adds value.	Partially implemented The United States is the largest bilateral aid provider. It continues to have a strong sectoral focus on health, with substantial support for addressing COVID-19 and is present in 155 partner countries and/or regional platforms.

Organisation and management

 

Recommendations 2016	Progress
As the US government has identified USAID as the lead player in the US development co-operation system, it should entrust it with the mandate of i) co-ordinating across development initiatives in Washington and in partner countries and ii) bringing together all US government development efforts in partner countries in one publicly available overview.	Partially implemented The USG interagency co-ordinates development initiatives in Washington, DC. Integrated country strategies that articulate US priorities in individual countries over a four-year period are publicly available. These strategies define a common set of Mission Goals and Objectives through a co-ordinated and collaborative planning effort by the Department of State, USAID and other USG agencies that have programmes in the country.
USAID should review the extent of institutionalisation of recent reform efforts and prioritise remaining reforms, including by fully resourcing the implementation of the human resources transformation plan in order to improve staff recruitment and progression.	Partially implemented No workforce strategy is in place and resourcing is set to improve. Gaps in the overseas workforce have been identified, and at headquarters, a 2017 civil service hiring freeze was recently lifted. Diversity, equity, inclusion and accessibility are at the centre of USAID’s recruitment effort, while localisation has intensified its focus on the roles and responsibilities of foreign service nationals.

Development co-operation delivery and partnerships

 

Recommendations 2016	Progress
The United States should continue to seek both synergies and flexibility across its varied initiatives, programmes and mechanisms, in order for missions to be able to align with country priorities and needs.	Partially implemented There is significant progress in aligning Country Development Cooperation Strategies to country priorities, in co-creation in programme design, and in alignment of work plans of programmes. Increased efforts have been made to foster integrated programming. However, centralised budgets and earmarked and directed funds continue to constrain alignment to national priorities by missions.
The United States should take stock of the results of its local systems approach with a view to increasing support to local actors, including governments, and reducing the reliance on US contractors.	Partially implemented There have been several reviews (though not a comprehensive review) of the multiple approaches to localisation. As yet, there is no formal evaluation of approaches but there is renewed commitment to increase support to local actors, especially those who are community based. There has been no reduction in the reliance on large non-governmental organisations or on private US contractors, and there is no transparent way to assess any increase in support to local actors.
The United States should streamline its procedures across government departments to achieve more effective and efficient whole-of-government programming.	Not implemented Government departments and agencies continue to use different procedures, including with multilateral partners. While efforts have been made to open funding opportunities to a wider selection of partners, the compliance burdens in procurement, audit and reporting remain key barriers to participation of smaller and local partners.
The United States should continue to reduce the level of tied aid, including food aid.	Partially implemented The share of the US untied total bilateral ODA has been around 60% since 2014. It increased to 72% in 2020. The volume of tied food aid decreased by more than half in 2020 over 2019. The United States is currently reviewing how it reports the tying status of its ODA to conform to the OECD reporting directives.

Results and accountability

 

Recommendations 2016	Progress
To improve the use of results information, evidence and data, the United States should streamline its indicators and reporting, and align more with partner country results frameworks and the SDGs.	Partially implemented USAID’s Country Development Cooperation Strategies include a results framework with standardised and customised indicators that reconcile post and headquarters priorities and build on information available in partner countries, but these are not deliberately aligned to the SDGs except insofar as the partner government strategies are so aligned.
The United States should embed its focus on collaborating, learning and adapting with simplified knowledge management tools and through routine follow up of evaluation findings.	Implemented USAID established an agency-level Knowledge Management and Organizational Learning Officer and function in 2019. An Agency Learning Agenda articulates priorities and focuses resources on critical knowledge gaps related to policy priorities and aligns with the FY 2022-26 Joint Strategic Plan.
The United States should continue to work with a vibrant civil society and private sector to deepen citizen engagement with global development.	Partially implemented Greater transparency of foreign assistance has helped build public awareness and increase outreach, but there is no systematic work to deepen global awareness among US citizens.

Humanitarian assistance

 

Recommendations 2016	Progress
The United States should continue to review compliance with counter-terrorism measures to ensure that partners can carry on working with local counterparts and are not punished for work in high-risk areas.	Partially implemented Sanctions were reviewed in 2021 and a series of waivers and licences somewhat ease the delivery of humanitarian assistance. The risk environment remains very high in humanitarian and other contexts.
The United States should continue to strengthen cross-government co-ordination mechanisms, especially in protracted crises and on policy issues, to increase the impact of the US voice on the global stage and increase the effectiveness of its humanitarian aid on the ground and strengthen its link to long-term development action.	Implemented Several co-ordination mechanisms were put in place either through administrative architecture changes, such as the creation of the Bureau for Humanitarian Assistance, or through the Office of Foreign Assistance at the Department of Defense. At higher political levels, the appointment of the USAID administrator to a permanent seat on the National Security Council Principals Committee strengthens a cross‑government approach and strategic direction in new or protracted crises.
The United States should continue to incorporate international guidelines on the military involvement in humanitarian assistance when developing policies and conducting operations.	Implemented The Department of Defense is now involved in design of policies.