US aid agency boosts direct funding to local institutions by 50 percent

“That’s why, three years ago, President Obama and Secretary Clinton called for elevating development alongside defense and diplomacy as full partners in our foreign policy. Today, that call that is being carried forward with new passion and leadership by Secretary Kerry. In his first major address as Secretary of State, he put forth a clear and businesslike argument for development as an investment in a stronger, safer America.”

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Shah defended the new approach against critics who think it's wasteful.

“Far from being irresponsible with American taxpayer funds, this approach creates incentives for our partners to strengthen their own institutions and replace aid with self-sufficiency,” he said. “We also do not assume good policies naturally follow development investment.

“Aid should be conditional on real commitments to reform — including fighting corruption, making market-oriented policies, and collecting more domestic revenue. From the New Alliance for Food Security and Nutrition to the Child Survival Call to Action … from Afghanistan to Egypt, we are demanding mutual accountability.”