Interview with J. Brian Atwood


Mr. Atwood is the Director of the U.S. Agency for International Development, the main agency responsible for the distribution of U.S. foreign aid.

Interviewed 10 July 1996.



GLENN BAKER: How does preventive diplomacy differ from traditional diplomacy?

BRIAN ATWOOD: Well, I think preventive diplomacy requires one to have early warning systems in place. It requires one to see the beginnings of a crisis. It requires one to understand the kinds of pressures that bring about crisis. And it requires action before some of these stories get on the front page of the newspaper. So, there's an entirely different orientation that one has.
It isn't brinksmanship. It isn't sort of pulling forces as we did during the Cold War and using deterrent strategies and the like of a military nature, it is more attempting to try to reconcile within societies. There's an awful lot of internal as opposed to cross-border activity that is involved.
It's obvious that in the old days and today that if you have a cross-border war, you're going to get international arbitration and involvement in diplomacy. A lot of the crises that we see and the dealings that we have in the preventive diplomacy rubric are internal to - inside the sovereign borders of countries.

BAKER: What factors are now seen as the most telltale early warning signs of conflict?

ATWOOD: Well, I think you see a number of factors. Obviously, weak governance and individuals who take an extreme view of politics in countries are the single most threatening factor. The question really is what other factors increase their influence within a society. Extreme poverty does. The urbanization problem, where millions of people are coming to cities, leaving rural areas. Rapid population growth, where countries double and triple their populations within a decade. All of these pressures, it seems to me, arm the extremists with what they need to influence the situation inside a country. And so, you have to deal with all of these matters if you're going to have a successful preventive diplomacy strategy.

BAKER: There are critics of such early warning systems that claim that they're overly broad and vague about the time in which a conflict might occur, you know, five years, ten years, next month. And they claim that, thereby, it paralyzes policymakers by presenting them with two large a list of potential crisis states, that perhaps you could count two-thirds of the states in Africa as fitting the criteria of on the brink of some conflict. How do you respond to that critique?

ATWOOD: I think it's valid. I think that we still have not developed early warning systems within our government that will call to the attention of policymakers serious problems in a timely manner and that we tend to either have too many that we're putting forth before people or we're not putting enough before people and getting to these issues so enough.
So, I think that we've got to look at early warning systems in a variety of ways, not simply what our intelligence community, for example, advises the policymakers within our government, but also what people in the region are being told. Regional mobilizations are extremely important. Communications among leaders in a region is important and they ought to have the means to communicate. In many of these poor countries, they don't have that means.
We've tried to introduce Internet into the foreign affairs agencies of various countries in East Africa, as well as the development ministries, in order to cause them to communicate. I think the biggest conflicts occur, the most conflicts, I should say, occur in countries where they're terribly poor and they've got famine problems and all sorts of other things. So, I think if they can communicate, that is the best kind of early warning system to put in place.

BAKER: We see that graphic media images of war or manmade disasters are often what it takes to spur action in the West to respond. How do you generate support for preventive action designed to prevent such disasters in the absence of those images?

ATWOOD: It is a problem and I think that intelligent governments and leadership at an international scale is what is needed here. You have a very hard time getting peoples' attention if something isn't on the front pages of the newspaper or on television. I think it's extremely important that we have a much more intelligent approach to the world because we can't wait and react when these situations blow up. They become very intractable at that point. It becomes extremely difficult when you have two irrational forces that are on both sides of a civil war, as, for example, you do in the case of Burundi. So, you've got to get out, way out ahead of these kinds of situations.
I'll give you one example of an area of the world where we have had a great deal of success in dealing with a kind of nascent and then real conflict, but it wasn't the kind of conflict that boiled over, it was the kind of conflict that simmered along for many years, and that is in the southern Philippines region of Mindanao.
There, because we were concerned about the threat of the Muslim extremists, in that case, to the government of the Philippines and because we had strategic interests during the Cold War in the Philippines, we invested a great deal of foreign aid money into the Mindanao region. We built airports, we built fishing ports, we built 180 kilometers of roads, we helped set up new businesses all over the region, and economic growth is now really booming and there are towns they call boom towns, like General Santos City in Mindanao that I visited last week. The best possible way to deal with conflict is to to get out ahead of it, as we did in the case of Mindanao and invest money. Now we've brought in the other donors. We have encouraged other donors to come into that region. Now the government of the Philippines is on the verge of negotiating an arrangement with the Muslim extremists. It's somewhat controversial and there's debate over in the Philippines, but the fact of the matter is that development has brought peace and they're on the verge of a peace settlement. I think that's the kind of crisis prevention that ought to be exercised.

BAKER: There are those that argue that even when policymakers are presented with overwhelming early warning signs of conflict that governments are slow to take effective preventive action. Rwanda is the case and point. How do you go about mobilizing government resolve to act decisively before conflict erupts when all signs indicate that it's coming?

ATWOOD: Well, In the case of Rwanda, the international community was engaged. We had a UN peacekeeping force in Rwanda. We had the Urusha Accords, which put certain requirements on the government. What we apparently didn't recognize was the volatility of the situation. It was a tinder box. And when the president's plane was shot down, the presidents of Burundi and Rwanda, it caused a genocide.
I don't know that we had sufficient assets in the country, either the United Nations or the United States, to know that a very intricate plan was underway to commit genocide. It certainly was a very extensive genocide. It had to be planned to some extent, although it sort of took off after it began. Then obviously, the UN force was overwhelmed by the situation. There were only about 1500 troops there.
I think the international community had, in the outlines of what it was doing in Rwanda, approached it appropriately, but without sufficient resources. And the volatility of the situation I think was attributable not only to the nefarious characters that brought that plane down and plotted the genocide, but also because of the many other pressures that existed within that society that made it easy for them to prey upon the society as a whole.
In other words, the extremists were able to take advantage of the extreme poverty, the over-population. It was the densest population in all of Africa. The environmental problems, the land tenure problems, all of the development problems became then an excuse for genocide. So, the question really is whether the international community, in the ten years , you know, preceding the genocide had made the investments necessary to prevent a failed state.

BAKER: Today, we see right next door, Burundi, as you mentioned, having similar ethnic make-up and there has been some concerns expressed that it could go the way of Rwanda. Considering the relatively small amount and getting smaller of money that the US can give to foreign aid and the massive amount of resources that are needed to bolster imploding societies like Burundi, is it likely that AID will choose to invest heavily in countries that are already deeply at risk of war?

ATWOOD: Well, we do have reduced resources, but what's important to note here is that the United States as the remaining superpower has more influence in situations like this than any other country. So, even with fewer resources, we can still influence other donors in other countries to get involved. But if we have none, no resources, and we simply refuse to put any money on the table, we're going to find that we've lost our leadership capacity. We're not suggesting to the American people that they should bear the entire burden of conflict, of prevention, what we're suggesting is that we need adequate resources to be involved and to be at the table and to discuss the possible solutions to a problem like the Burundi problem.

BAKER: Is it sometimes seen as necessary to not waste resources on countries that may be perceived as basket cases and instead of invest in regions where progress seems more likely?

ATWOOD: We have invested some resources in the Horn, the Greater Horn area of East Africa. It is probably the poorest area in the world, but we are pouring resources into that area for humanitarian causes, for relief of humanitarian problems because that area is a chronic drought area and there's a famine every ten years. People may remember, in 1985, we poured millions of government money and voluntary contributions into Ethiopia when there was a tremendous famine there.
What we've tried to do is to get the international community, in the case of the Greater Horn area, which is about ten countries in that region of East Africa, to think differently about what they do. Because we'll keep pouring more and more money into that for humanitarian relief if we don't get the, for example, to improve their own agricultural production, if we don't get the countries of the region to trade with one another, so that some of the areas that can grow crops will sell to the areas that can't because of drought, if we don't get them to communicate with one another, to come together to talk about the development of the region.
Now you still may have one country in that region, in the case of region, obviously, Rwanda and Burundi are the worst, but that will fall out, but the chances are better of dealing with crisis prevention if you can get the regional leaders to deal with it on a regional basis. So, that's what we've tried. That's President Clinton's Greater Horn Initiative. The rest of the world has followed suit. We are now looking at a continuum.
We're looking at relief, recovery and development, long-term development and looking at the relationship of what we do in each of those areas to the other areas. That hasn't been done before, it's all been compartmentalized. We pour food in. We don't know what the Europeans do, they don't know what we do. We're spending more money than we have to spend. We're not putting enough development money into the recovery side to get, for example, soldiers decommissioned and working again.
We don't look at the agricultural sector in a way that would help them increase their pro -- productivity and feeding themselves, as opposed to being on the dole, on the international dole. So, these are the kinds of things we're doing in a very new way of looking at the Greater Horn area. That's the poorest area in the world and there are going to be conflicts. There will be famines.
But I think when we use the devices that are available to us nowadays -- satellites. We're looking at the terrain to see exactly where the drought areas are coming. We can look at the effect of the El Nino currents in South America, off the coast of South America to see what the effect of weather will be in regions like that and we can predict better.
We're using the Internet, so that the regional leaders can communicate with one another and they can have access to information that will be vital to them in terms of development. So, technological advances are also going to, I think, to help us with crisis prevention and preventive diplomacy in the future.

BAKER: There are those that claim that preventive action is simply a popular buzz word that will soon pass the way of Pet Rocks and hula hoops and that others claim that it's an alternative strategy that's gaining acceptance. What do you see is the future of preventive diplomacy?

ATWOOD: I mean, we can stand back and criticize preventive diplomacy and we can point out its weaknesses or whatever, but we really have no choice. In a world that is growing as fast as this world is growing, where forces have been unleashed as a result of the end of the Cold War, ethnic tensions, and the like. We're going to be seeing two billion more people in the next 20 years on the face of the earth. We have no choice but to try to find mechanisms to deal with the impending chaos in any given country or globally.
If we don't do it, it's going to disrupt the global economy. It's going to mean that we won't see the growth that we want for our own economy. It's going to mean that diseases that we thought had been beaten or new diseases that we never really understood, like AIDS and ebola virus and the like are going to be affecting our people. We can no longer close our doors to the developing world. So, we have to have a program. It seems to me we can't do it alone.
No one is asking the American people to bear that burden alone, but we're asking for an effective United Nations, an effective international financial system. We're looking for effective leadership in development, something the United States has always had. And that goes hand in glove with effective diplomacy.
Diplomacy, no matter how effective, can't handle the problem after the top has blown off a country because you're dealing, as we have seen in places like Somalia, where there still is not a sitting government, and places like Bosnia, where it was extremely difficult because of the intractability of the forces on all sides to finally bring a settlement. I think that was an ingenious settlement led by the United States, but nonetheless, we have to make it stick now.
These situations become extraordinarily difficult if we let them get to the point of boiling over. If we don't deal with them up front, then we're not going to have a viable foreign policy, and I think that idea is catching on. I think that it's logical, it's common sense. I don't see any other way to approach the world. And since the United States has vast interests in this world. We must have a policy that works. We must use the new technology. We must use the new diplomacy and we must use international organizations to try to bring some structure, some form to this world, so that everyone is practicing preventive diplomacy in the same essentially manner, not just the United States. But if we don't lead, it won't happen.

BAKER: Let's look at foreign aid specifically. Today, we see foreign aid under seige on Capitol Hill and at the same time, we see the US military, which receives approximately $265 billion a year, increasing involved in costly post-conflict relief or interventionary roles. In the long run, does cutting foreign aid make financial or political sense?

ATWOOD: No, and, ironically, Secretary Perry and General Shalikashvili of the staff of the Joint Chiefs said the same thing. We can no longer use the military...We should not be using the military as a first resort, we should be using them as a last resort. But increasingly, because internationally that's the only resources we have, we're finding the military in places where they don't want to be. They didn't want to be in Rwanda helping refugees after. They did a very good job of it, but we could have prevented that from happening if we had more resources. So, I think it's very shortsighted to cut our foreign aid budget.
It relates also to our interest in competing more effectively in the global economy, both from the perspective of failed states and refugee flows and environmental disasters disrupting the global economy and inhibiting its growth, but it's also an opportunity for us to create economic growth, which will obviously be of advantage to our business and to our economy.
Now 26 percent of our economy is tied into the global economy. That's very low compared to other industrial nations, but it's doubled in the last decade. And consequently, it seems to me, that we're realizing as each year goes by the stake we have in trying to make sure that economic growth continues. We've taken great advantage through our foreign aid program in encouraging economic growth to go from, in 1946, $2.3 trillion to $23.4 trillion today.
That growth is attributable, in part, in large part, to development exercises that have gone on. And when four out of five people live in the developing world, clearly that's where the consumers are, and poor people can't buy American products. So, we have a real interest, it seems to me, in having a foreign aid program that works.

BAKER: So, foreign aid is related to jobs?

ATWOOD: It's related to jobs here, it's related to health here, it's related to environment here. It's related to global stability and our foreign policy. It's related to preventive diplomacy. It's related, yes, to all of those things. It's related to our effort to stabilize world population growth, but we hope to do that by the year 2050. But when you see a billion more people every decade added to the face of the year, about 90 to 100 million people, that's the size of the country of Mexico, every year, you've got to deal with that. It will be unmanageable if we do not have a foreign aid program in our arsenal.

BAKER: During the Cold War, foreign aid usually played a political role in the superpower competition for influence in what we then called the Third World. How is foreign aid being retooled today to make it more effective in promoting American national interests?

ATWOOD: Well, the Cold War placed a great burden on the development mission because we were forced for political considerations to work with governments that were not good development partners. We're no longer forced to do that. We don't have to work with Zaire, for example, where Mobutu has acknowledged putting a lot of that money back into Swiss bank accounts. We don't have to do that any longer. We can work with non-governmental organizations, which the network of which is extensive around the world today, and we can work with governments that are good development partners that allow us access to their people. Because development doesn't work if people can't participate in it.
So, now that the Cold War is over, we can do effective development work as never before. And we're, as a consequence, not working in a lot of countries that are not good development partners. That's the biggest change.

BAKER: Can you give an example of what you would consider an effective program today that might not have taken place 15 years ago?

ATWOOD: An effective program today. I mean, we have a lot of effective programs today because what we're trying to do today is to hold our people accountable for results. But -- I'll give you an example.
I've just come from Indonesia. We have an extensive family planning program in Indonesia and the Indonesian government is constantly going on television and explaining to people why this is important to them and to their lives. This program works probably better than any family planning program in the world.
We don't have to worry that the Indonesian people will see us in Indonesia as having an ulterior motive. They know that our motive is to help the Indonesian people achieve economic growth and control the size of their population. The per capita income of Indonesia soars as a result of their ability to control population growth, as well as to achieve economic growth.
In the old days of the Cold War, I'm sure a lot of Indonesians would have been somewhat concerned that the American foreign aid agency was there to try to make sure they stayed on the right side of the column in the East-West struggle.

BAKER: One thing we haven't gone into in great detail is the increasing budget cuts. Very simply, how are budget cuts impacting USAID programs today?

ATWOOD: Well, I'm deeply worried that we're losing our institutional capacity to continue our leadership role in development. We've just had a reduction-in-force of 200 direct-hire Americans. We have reduced more people in this agency than any other agency save one in government. These are development professionals. They're scientists, they're environmentalists, they're economists, they're agricultural specialists, and I'm worry that we're going to be losing our institutional capacity.
We had a close to one billion dollar cut in our budget last year, most of that affecting the developing world. It didn't affect our Middle East programs or our former Soviet Union programs as much as it did Africa, Latin America and Asia. So, we're losing our edge. We're having to close some 27 missions around the world. I think in many cases, we wouldn't want to be there because the government isn't a good partner, but in other cases we would probably be there for at least another decade, but we're being forced to leave early.
What that means is that other governments -- the Japanese, the French, the Germans, all of whom now give more aid than we do in absolute terms, as a percentage of our GNP, we are absolutely last among the industrial countries. It's .10 percent now of our GNP.
Among the industrial nations, we are absolutely last as a percentage of our gross national product. Countries like Denmark provide $900 per taxpaying family to foreign aid. The United States is now under $30 per taxpaying family. In other words, about the size of a -- of a -- a nice healthy lunch at McDonald's. This is what we give each year for foreign aid. Now that, it seems to me, is not advancing our interests.
It is not understanding the role that our economy plays in the global economy. It's not understanding the need to be competitive. It's not understanding our need to deal with threats to our interests, health, and environmental, and population and the like. It's a very narrow view of the world. Now I understand there's a need to balance our budget, but you also have to make investments in the future if you're going to see that budget being balanced. Because it's investments in the global economy that are going to bring the revenues that will help us balance the budget. So, I think we've been fairly shortsighted in that regard and I regret very much the congressional budget cuts that have been made.

BAKER: Simply, is foreign aid pouring money down a rat hole?

ATWOOD: No. And I think that the successes that we've had in the foreign aid program with other countries over the last 50 years is rather phenomenal. I mean, we've seen infant mortality reduced by half in the world. We've seen the average age of the world's citizens go from 42 to 62. We've seen clean water now available to 75 percent more people. We've seen economic growth soar from, as I mentioned before, about 2.3 trillion to 23.4 trillion.
All of this is the result of educating people, making sure that they're healthy, making sure that they get their macro-economic and micro-economic policies correct, making sure that they understand the principles of market economics and democracy and democratic institutions. All of these things have made for a more stable world. Foreign aid has succeeded.
We have had instances in the past, during the Cold War, where we have not focussed on the development aspect of the mission, but rather on the political aspect, and we've put money into countries where we couldn't have expected to succeed: The Zaires of the world, where the per capita income has gone down from something like $1800 down to less than $200 today. It's been frittered away by bad policies within the government of Zaire. And we don't work with Zaire any longer and most donors don't because you can't work with partners that don't care about the development of their own country. So, that is over. But when there are references to fraud, mismanagement, abuse or whatever, it's usually because of the political motivation behind the foreign aid program. Obviously, there were problems of management, too, and I think we're corrected most of those problems in recent years. So, I don't believe that foreign aid has been a bad investment at all, it's been a tremendous investment for the American people.

BAKER: What about in terms of its economic impact here at home? When people say how does it affect me? When a foreign aid, a foreign aid dollar is spent, where does it go?

ATWOOD: Well, it goes into the part of the world which has now four out of five people living there, the developing world. You're talking about emerging markets. To give you an example, I mean we spent $16 billion in the 50s and 60s in Korea. We helped Korea get its economy on its feet. We helped them with health care and education and the like. Now we trade, we export $32 billion worth of goods every year to Korea. That's a tremendous return on our investment.
In the case of Latin America, where we invested billions of dollars in foreign aid over the years, we now trade with Latin America, we send exports, $108 billion last year of exports went to Latin America alone. So, we're getting a tremendous return. Now for every dollar we invest, for example, in agricultural research, we get a return of four dollars in terms of increased yield for American farmers. The same is true of investing in agricultural production overseas.
As we improve the lives of people, they look to the United States for a higher level of import, agricultural imports for the most part. Every one out of every four acres of American agricultural land is in the export sector. So, it helps our farmers, it helps our people, it helps our economy. There is no question that as we engage in the global economy more and more every year, now 26 percent of our GNP is in the -- in the export-import sector, we really are more dependent than ever before on making sure that economic growth continues in the developing world, where most of the people live. So, it's an investment in the future and it brings a tremendous return.

BAKER: It seems that foreign aid has a PR problem with the American people, that it has certain stigmas attached to it. How does one go about addressing that and changing the public's attitudes about foreign aid in their sort of concretized, old notions of it?

ATWOOD: The American people seem to feel that we spend a lot more money on foreign aid that we actually do. Polls indicated that they believe that it's something like 15 to 20 percent of our national budget goes to foreign aid. Now my belief is the American people are never wrong, so why is it that they're confused about this matter, because it's only one-half of one percent of our budget goes to foreign aid.
Well, they're mixing all international spending together. And when you consider the $270 billion military budget and the other budgets within the international affairs field, you do get up to close to 15 percent or 20 percent of our national budget. That's why I think they feel that way. But as we look at a different world with fewer threats from communism and the like and as we begin to downsize our military, we're downsizing our foreign aid and our diplomacy budgets even more. And that's very dangerous because we're going to end up being the world's policeman, we're going to end up providing a security umbrella to our economic competitors: the Japanese, the French, the Germans, and they're spending more and more money on foreign aid, getting out there, making the contacts, helping to encourage economic growth that will come back mainly to their businesses as opposed to ours.
Now there's nothing wrong with that kind of competition, but we're losing right now. As the country that's rated last among all of the industrial nations in terms of percentage of our gross national product, we're simply not putting our best foot forward in the global economy.

[End of interview.]


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