An Analysis of the Shrinking Partnership of USAID with Non Governmental Organizations (NGOs)

The report provides an analysis of the United States Government’s recent shift in approach towards foreign assistance in Pakistan. The report was produced by a team of five graduate students at Columbia University’s School of International and Public Affairs (SIPA) at the request of the International Rescue Committee (IRC). It is based on extensive research and interviews with members of the humanitarian aid and development community, including key figures at prominent international non-governmental organizations (INGOs) and the United States Agency for International Development (USAID).

The IRC and USAID have been partners in providing emergency relief and development programs in Pakistan for over 30 years. In recent years, the United States Government (USG) has adopted a new approach to foreign assistance in Pakistan, which has led USAID to decrease funding to long established INGOs such as the IRC. The Enhanced Partnership with Pakistan Act of 2009 aims to provide a greater proportion of humanitarian aid and development funding to local partners, such as local and national governments and host country organizations. As a result, a substantial portion of new USAID funding opportunities in Pakistan are limited to local competition. This has placed severe constraints on the IRC’s ability to continue building local capacity and to deliver critical services. There is concern that the abrupt shift in funding may also have detrimental consequences for beneficiaries, as local partners may not always have the expertise and technical capacity to distribute aid as effectively as the more experienced INGOs.

This report aims to assess whether the change in USAID funding is specific to Pakistan or reflective of a wider trend toward a shrinking partnership with INGOs in delivering foreign assistance. In this report, the SIPA team examines the factors that have contributed to the policy change, considers the impact of the Enhanced Partnership with Pakistan Act on beneficiaries and INGOs, and presents conclusions and potential directions for the USAID-INGO relationship. Lastly, the report aims to provide the IRC with recommendations for operating in this changing environment.