second because it would compromise the IAF's mission. This leaves the option of a modest increase in the size of the staff, which we support. One purpose of establishing a professional position of associate FR is to share the burden of the FRS. This is where the professional work load is greatest. This may increase the share of administrative costs modestly from the 11 to 15 percent that generally has prevailed in the past. Our response to this is that if an increase to 15 to 20 percent improves the operations of the Foundation, then SO be it. By adding AFRS the authorized personnel ceiling may have to be increased by eight or ten from the current 67 full-time equivalents authorized by the Office of Management and Budget. This would still leave the staff level substantially below the 100 authorized in the original legislation. The IAF would still not be a bloated or selfaggrandizing bureaucracy. If increased staff is not authorized, it may not be possible to carry out recommendations that will involve significant additional staff time. We believe there are few such recommendations. The increased time burden is apt to be greatest in broadening contacts in the United States. of outside consultants, our recommendations regarding Despite the use research and dissemination and monitoring may entail a marginal increase in staff time. On the whole, however, we have sought to avoid proposals that will increase the time burden on staff. Our proposal for creating the new position of AFR is designed primarily to ease the current load on overworked FRs, and to permit staff to take time to reflect on the lessons they have learned. We wish to make one final comment. 營 D. Bell. While this evaluation was in progress the board of directors, on December 5, 1983, requested the resignation of the president of the Foundation, Peter The four directors voting in favor of this request were all appointees of the current administration (three members in government positions and one private member, the chairman of the board) and the two dissenting votes were by directors appointed by the previous administration. The action was widely seen by the U.S. press as having a political basis. The administration has since informed the Congress that there will be no attempt to politicize the Foundation. The uniqueness of the Foundation rests on two pillars, one that it is an agency of the U.S. government, and the other that it is nonpolitical- nonpartisan in the United States and not taking sides in countries in which grants are made. Other U.S. government agencies (such as AID) give small grants, but they have a political character. International agencies provide small loans and grants on a nonpolitical basis. Many private U.S. foundations and nonprofit organizations also provide small loans and grants on a nonpolitical basis, but, like international agencies, they are not part of the If the IAF were to lose its double nonpolitical character--at home and abroad--we believe it would have no reason for existing. By having lost its uniqueness, it would be redundant. If the Foundation is to remain in being--as we strongly believe it should--it must retain its distinctive character. APPENDIX A IAF BOARD OF DIRECTORS MEETING April 18, 1983 The approved motion on long-range planning: Motion by Peter McPherson Seconded by Alberto Ibargüen 1. That an ad hoc committee be formed consisting of: 2. 3. That the ad hoc committee identify by consensus a person outside of the Board and Foundation staff of sufficient stature in Latin America to serve as a consultant for a study to be used to initiate an IAF strategic planning exercise. The persons considered by the ad hoc committee to be subject to telephone or meeting. QUALIFICATIONS FOR CONSULTANT 1. 2. 3. 4. 5. 6. 7. 8. 9. Strong knowledge of social and economic development issues in Latin America and the Caribbean, particularly as they involve and affect the poor. Strong analytic and conceptual skills. Familiarity with the operations of development assistance agencies and their efforts to assist poor and disadvantaged groups. Ability in Spanish; standing in Latin America and the Respected by the community of specialists dealing with problems of development in Latin America and the Caribbean. Experience in evaluation or planning. Knowledge of the Foundation (without preconceived No inhibitions about "calling shots" as he or she sees them. No personal ties of friendship to anyone on the Board or staff. 10. No ties to the intelligence community. 11. No active involvement in partisan politics. November 10, 1983 Evaluation of the Inter-American Foundation Scope of Work 1. Introduction The Inter-American Foundation was created in 1969 and began operations in 1971. The legislative history shows that it was created to be an experimental agency and to seek to reach poor people directly, primarily by means of modest financial grants. The Foundation's objectives are spelled out in the enabling legislation, to: 1. strengthen the bonds of friendship and understanding among peoples of this hemisphere; 2. support self-help efforts designed to enlarge the opportunities for individual development; 3. stimulate and assist effective and ever wider participation of the people in the development process; and 4. encourage the establishment and growth of democratic institutions, private and governmental, appropriate to the requirements of the individual sovereign nations of this hemisphere. expressed by the Congress that Underlying these goals were concerns traditional programs of development assistance were not reaching poor people, did not give sufficient attention to social and civic development, and were excessively influenced by short-term foreign-policy considerations. The enabling legislation and the Foundation's mode of operations respond to these concerns. The Foundation was established as an independent agency so that its operations would not be affected by short-term fluctuations in U.S. foreign policy. The Foundation, in its operations, normally responds to initiatives taken in the first instance by poor people. This has translated into granting |