Crunching Obama's Numbers on Global Aid
Barack Obama has perhaps unintentionally overstated America's global aid assistance and has inflated what the US is currently doing in his recent foreign policy speech.
He then calls for a doubling of a fictionalized amount of current American aid to an annual outlay of $50 billion/year.
Obama stated in his major foreign policy remarks:
Delivering on these universal aspirations requires basic sustenance like food and clean water; medicine and shelter. It also requires a society that is supported by the pillars of a sustainable democracy -- a strong legislature, an independent judiciary, the rule of law, a vibrant civil society, a free press, and an honest police force. It requires building the capacity of the world's weakest states and providing them what they need to reduce poverty, build healthy and educated communities, develop markets, and generate wealth. And it requires states that have the capacity to fight terrorism, halt the proliferation of deadly weapons, and build the health care infrastructure needed to prevent and treat such deadly diseases as HIV/AIDS and malaria.As President, I will double our annual investments in meeting these challenges to $50 billion by 2012 [emphasis added] and ensure that those new resources are directed towards these strategic goals.
For the last twenty years, U.S. foreign aid funding has done little more than keep pace with inflation. Doubling our foreign assistance spending by 2012 will help meet the challenge laid out by Tony Blair at the 2005 G-8 conference at Gleneagles, and it will help push the rest of the developed world to invest in security and opportunity. As we have seen recently with large increases in funding for our AIDS programs, we have the capacity to make sure this funding makes a real difference.
I like Obama's intent -- and his worthy goals -- but it's important not to brush over or white-wash the real starting point of the aid dollars that Obama wants to increase.
If we give Obama's number crunchers the benefit of the doubt on the $25 billion level of current assistance the US is providing, there are only a few potential explanations for these numbers.
Most sources peg American poverty-focused development assistance at $16.7 billion. The OECD bumps this to $22.7 billion because the OECD includes a few non-recurring major debt relief packages in Iraq and Afghanistan -- while most of the professionals in this field do not count debt relief as normalized poverty assistance.
Obama may be defining foreign assistance in broad terms which merges aid and debt relief -- including funding that includes non-proliferation efforts, "GWOT" related efforts, etc. (but this is not customary in any way among professionals who work in the foreign assistance arena). Alternatively, Obama may just rounding up for political effect.
If Obama targeted $35 billion in real global poverty assistance, then he'd be developing what was 'real' rather than imagined in America's aid budget.
To provide some further context for current budget levels, these numbers may be helpful:
FY 2007International Affairs Budget (includes poverty aid and diplomacy)
$32.6 billionPoverty-Focused Development Assistance
$16.7 billion (according to DATA.org)$22.7 billion (according to OECD - includes debt cancellation in Iraq and Afghanistan)
Defense Budget (for comparison)
$447.4 billionFY 2008
International Affairs Budget (includes poverty aid and diplomacy)
$36.5 to $39.8 billionPoverty-Focused Development Assistance
$19 billion request (according to DATA.org)Defense Budget (for comparison)
$623.5 billion
Barack Obama hit many high notes in his speech, but in the area where America is running far behind where it should be -- particularly in its public diplomacy and global assistance programs -- he has to get the numbers right.
We need to do more in my view, but to call for doing even more yet we need an unsentimental and unvarnished picture of where we are today.
-- Steve Clemons is Senior Fellow and Director of the American Strategy Program at the New America Foundation and publishes the popular political blog, The Washington Note















Why don't you just ask his campaign directly? Alternatively, I know that some of the other TPM folks like Greg Sargent and Eric Kleefeld talk to the various campaigns all the time. I'm sure the Obama people would be happy to clarify where they got their numbers from.
April 25, 2007 10:18 AM | Reply | Permalink
ohiomeister -- thanks for your note. I have called Obama's press office -- and do know people in the Obama operation both in the Senate and the campaign...but I had no response.
I have tried quite unsuccessfully to get on Obama's media roster, to receive press releases, or to get on his blog cultivation list -- but i have heard nothing.
So, I must rely on my own assessment of his words -- and to comment and exchange views with the Obama operation more remotely, until they discover that there are some who would indeed like to know more about what is animating some of the Senator's important views.
Thanks for asking,
Steve Clemons
April 25, 2007 10:35 AM | Reply | Permalink
I don't know where Obama got his data, but they seem credible to me.
For 2008, the Bush administration requested $17.05 billion for "International Development and Humanitarian Assistance" (Budget Subfunction 151) and $8.63 billion for "International Security Assistance" (Budget Subfunction 152). These totals exclude emergency foreign affairs funds requested for 2008 for the so-called "Global War on Terrorism."
That totals $25.68 billion, which would be consistent with what Obama is saying. Now, development assistance advocates like DATA are unlikely to include large chunks of this funding in their totals of poverty-focused aid (most notably, the $4.5 billion in foreign military financing), but Obama's speech seems to explicitly include these sorts of things.
Anyway, it looks to me like Obama's numbers are credible. If he had said "We need to double spending on international poverty alleviation to $50 billion," I would agree with your critique, Steve. But since that isn't what he said and since not all U.S. foreign aid is anti-poverty aid, I think it is a little out of line to refer to the implied $25 billion estimate as a "fictionalized amount of current American aid."
April 25, 2007 11:40 AM | Reply | Permalink
Just re-read Obama's speech.
What does "third way America" mean? Does it mean that he's in with these guys? "Third Way Applauds Lieberman-Clinton-Tauscher-Udall Bill On Army End-Strength", or does it have some other meaning within foreign policy circles?
April 25, 2007 12:00 PM | Reply | Permalink
Obama gives five ways for America to lead again. The third way comes after the first and second way, and before the fourth and fifth way.
April 25, 2007 12:12 PM | Reply | Permalink
Sand:
That's a joke, right?
"The first way America will lead is by bringing a responsible end to this war in Iraq and refocusing on the critical challenges in the broader region. ...
"The second way America will lead again is by building the first truly 21st century military and showing wisdom in how we deploy it. ...
"The third way America must lead again is by marshalling a global effort to meet a threat that rises above all others in urgency – securing, destroying, and stopping the spread of weapons of mass destruction."
No secret coded messages here!
April 25, 2007 12:13 PM | Reply | Permalink
oops Thanks...
April 25, 2007 12:18 PM | Reply | Permalink
No secret coded messages here!
No, I did go a little tooooo deep. However, it did get me wondering how his policies align with this group?
April 25, 2007 12:22 PM | Reply | Permalink
He's well to their left. Third Way is a conservative/centrist Democratic thinktank.
They do some interesting, serious work, but in general and particularly on Iraq-related issues, I don't think Obama would be closely aligned with them.
April 25, 2007 12:32 PM | Reply | Permalink
moved
April 25, 2007 1:53 PM | Reply | Permalink
Frankly, Clemons should get off it and find a more worthy thesis for his next post, or not post at all. His comment is incredibly nitpicky and obtuse.
Debt relief is very important to global aid and reducing poverty. (duh!)
Calling it a "one-time" occurrence, is totally obtuse in context. It's only a "one time" gain for the receiving nation, but from the US standpoint, with many poor nations needing debt relief, it's hardly a "one time" opportunity for aid and reducing global poverty. (duh again!)
If Clemons wants to argue the US should do more, fine. If he needs more clarification from the Obama campaign, fine.
But grabbing attention with this non-gotcha is obnoxious and reminds me of the crap FOX and CNN and other really shoddy outfits do, and we don't need any more of. It's exactly the kind of sensationalism which only does a disservice to candidates, issues, and readers. Knock it off.
April 25, 2007 2:05 PM | Reply | Permalink
Thanks kozmik -- I've been angling to be called nitpicky for a long time... I think I made clear my support of Obama's direction, but I'm a critic of those who obfuscate the sorry state of our foreign aid today. I'm not a gotcha guy with Obama, but I do want to -- in a friendly way -- get him to toughen up.
I was at the Center for Budget and Policy Priorities 25th Anniversary dinner last night, and was influenced by Bob Greenstein's legendary obsession with "facts" and "details." They convinced me they matter.
best,
Steve Clemons
April 25, 2007 2:22 PM | Reply | Permalink
Alternatively, Obama may just rounding up for political effect.
Steve, I didn't really understand the thrust of your criticism. Since Obama's argument is that current US aid levels are too low, how would he benefit rhetorically by rounding the numbers up? Wouldn't he have wanted to represent them at the lowest defensible figure he could come up with, so as to emphasize Republican negligence, and to portray his own $50 billion proposal in the best possible light?
I think Readstoomuch probably has it right. If Obama had given a lower number for US aid, by neglecting the security assistance component, then he could have presented his $50 billion proposal as a more impressive tripling of foreign aid. But then he would have been open to the charge of misrepresenting US aid as lower than it actually is, for political effect.
April 25, 2007 3:30 PM | Reply | Permalink
Writing such non-gotcha articles against popular candidates is a good way to get deservedly called a lot of things.
Details outside of context are meaningless. Saying someone is "whitewashing" issues is your idea of frindly?
You could simply have said: "I think Obama is lumping debt relief with other forms of aid, which is fine in context of a political speech, but here's some additional numbers and breakdown" without saying his figures are "brushed over" or "whitewashed" without other hostile and hyperbolic language.
All you've accomplished is to insult a popular candidate who is already pro-aid, and calling for doubling aid.
You've represented the aid community in the most over zealous, aggressively rude, and self-entitled manner, which is a real turn off. That says quite a lot about your skills as a communicator and advocate, and he appears a lot better than you.
I'd encourage him to stay away from over zealous special interests who behave with the sense of entitlement and hostility you exhibit. Such people are a big part of the problem in politics today, creating back-room-deal politicians like Bush and Cheney, or guys afraid of their own shadow, trying to be all things to all people, like Kerry.
No thanks. I think voters have had quite enough of your style of "friendly" issue advocacy.
April 25, 2007 4:48 PM | Reply | Permalink
kozmik, I'm a big Obama fan, but Clemons's point here is neither nitpicky nor obtuse. The US has a very serious problem with fudging its numbers on foreign aid and development assistance, and more importantly with misstating what that aid has actually accomplished. It would not be going too far to call the behavior of many US aid agencies fraudulent. The US's self-defeatng habit of using foreign aid as advertising for American generosity has corrupted the entire enterprise and makes foreigners more cynical about America.
I'm sensitive on this point because I've just been listening to stories about USAID and PEPFAR's new mandated size for display of its logo on clearly visible materials on all program material it donates -- frequently at programs where it has done nothing worthwhile, just donates an air conditioner or two and then expects its logo to be smeared all over this (foreign-government-owned) facility. Obama should get his numbers right as a sign that he takes foreign aid seriously, as an arena for accomplishment of goals, rather than noisy US self-promotion.
Accumulating Peripherals
April 25, 2007 4:59 PM | Reply | Permalink
I think it's entirely nitpicky and obtuse. Count me among the tens of millions of voters who are tired of these sorts of hatchet jobs by special interests on the right and left who do more brick throwing than good.
No special interest or organization represented by such political hatchet men will get a cent of money or an ounce of support from me, in fact quite the opposite. I fully support Obama to avoid pandering to various interests, the less he does so, the more I'll support him.
Last time I checked he was running for President of the United States, not President of the divided special interests. If the public, the real public, wants him to address an issue, I'm confident he will.
Obama calling for doubling aid to $50bil, and using a maximal number is great. Even if you suspect he'll only double the minimal number to something like $36bil, it's still great progress.
He didn't exaggerate aid claims, he lumped debt relief in, which is fair in my definition of aid, as a tax payer and voter not working in the aid industry or a think tank, which I suspect outnumber those working in the aid industry and think tanks by a wide margin.
Regardless, any widespread problem is not cause to attack Obama, but the widespread problem itself.
Again, this is exactly what I can't stand about over zealous special interests and think tankers with their myopic agendas. It creates the sort of back-room deals we see with the Cheney energy commission, or candidates like Kerry afraid of his own shadow. It creates scandal issues and talking points which dominate the news and turn out to be nothing after all is said and done, and confused and apathetic voters stayed home.
I've had enough.
Congrats Steve Clemons. Your American Strategy Program at the New America Foundation just made my list of problems not solutions.
April 25, 2007 5:59 PM | Reply | Permalink
Third Way is probably right of center on a lot of issues these days. And I mean right of center of the whole country, not just Democrats.
For example, third Way was all for globalization, but failed to implement meaningful trade agreements for a level playing field. Historically, the Right is basically for Wall Street and the Left tends towards labor.
After NAFTA and the resulting rush to the bottom harming more Americans and global workers than it helped, current centrist thinking is more in favor of Fair Trade, i.e. globalization and specialization, but with baseline standards for a level playing field and some consideration for a net good to Americans and humanity, not just more profits to Wall Street.
Third Way seems stuck defending old positions, and has failed to evolve and remain centrists.
April 25, 2007 6:40 PM | Reply | Permalink
He isn't brushing off or washing over. The man doesn't have a clue. An empty suit wearing a happy face and carrying a collection plate. HRC & Obama is not what America needs after 30 years of Ronald Reagan and his policies destroying our country.
April 26, 2007 3:18 AM | Reply | Permalink
kozmik, you're acting completely weird here. As I said, I've been an Obama backer from day 1. I think he's the soundest candidate on foreign policy and every other count. But one of the worst and most insidiously corrupting aspects of the Bush Administration has been its addiction to playing fast and loose with numbers. In the field of foreign aid, this has meant the invention of completely bogus indices for monitoring and evaluation of the effectiveness of US programs, clearly aimed not at helping ensure the programs actually accomplish anything, but at being able to wave numbers around for political purposes. There is actually an explicit directive at USAID requiring all funded programs to send "inspiring stories" of individuals the program has helped back up to HQ level for promotional purposes. Meanwhile, the targets for PEPFAR include unmeasurable stuff like "numbers of HIV cases prevented", which is just an invitation to manipulation of data.
Here in Vietnam, one of the ills of the Communist system which the government itself acknowledges is called "target disease": the habit of setting meaningless targets in a top-down fashion, regardless of the need for them, and then manipulating results to ensure that the targets are met. What Steve is looking for here is a signal that Obama understands that US aid policy has come to suffer from the same sort of target disease, and intends to take a more serious and evidence-based attitude towards foreign aid policy. That's a perfectly solid point to make, and it's also something I would like to see from Obama. Again, to be clear: Obama rocks. My lighter is up; this is the song I would like to hear.
Accumulating Peripherals
April 26, 2007 4:43 AM | Reply | Permalink
How utterly naive. :-)
But if I may be so ungracious as to try my hand at picking a nit:
Undoubtedly Obama should have said the likely overstated figure was $22.7B from $16.7B rather than having the audacity to hope that no one would notice that flippant rounding. 3/10 of a billion ain't beans, let alone $2B more, except in Washington.
Best, Terry
April 26, 2007 5:44 AM | Reply | Permalink
Two main points here:
1. I'm not sure I understand what figure the critics are saying Obama should have used as his estimate of the current US foreign aid level.
2. I don't understand at all why these critics think Obama would possibly want to overestimate US foreign aid, given his evident point of criticizing current aid as too low. Steve's suggestion that Obama might inflate the number for political effect simply makes no sense, given the fact that the political effect Obama desires would come from representing these numbers as too small. If Obama wanted to the distort numbers for political effect, he would have have deflated them.
I think Steve is miffed that the Obama campaign has not been as forthcoming with him personally as he would like, and so he has decided to pick some nonsensical nits with the campaign to get a response out of them.
April 26, 2007 9:49 AM | Reply | Permalink