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1 (2011)

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U.S. GOVERNMENT
INFORMATION
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                  STATE, FOREIGN OPERATIONS, AND RELATED
                    PROGRAMS APPROPRIATIONS FOR FISCAL
                    YEAR 2012


                                   TUESDAY, APRIL 12, 2011

                                                        U.S. SENATE,
                      SUBCOMMITTEE OF THE COMMITTEE ON APPROPRIATIONS,
                                                            Washington, DC.
                   The subcommittee met at 10:02 a.m., in room SD-138, Dirksen
                   Senate Office Building, Hon. Patrick J. Leahy (chairman) pre-
                   siding.
                   Present: Senators Leahy, Mikulski, Kirk, and Tim Johnson.
                      U.S. AGENCY FOR INTERNATIONAL DEVELOPMENT
                  STATEMENT OF DR. RAJIV SHAH, ADMINISTRATOR
                         OPENING STATEMENT OF SENATOR PATRICK J. LEAHY
                    Senator LEAHY. Good morning.
                    Today we are going to hear testimony from Dr. Rajiv Shah, Ad-
                  ministrator of the United States Agency for International Develop-
                  ment (USAID), on the Agency's fiscal year 2012 budget request.
                  Most of us know Dr. Shah well, and welcome him here.
                  About 15 months ago the Administrator took charge of an agency
                  that has struggled for many years with serious management and
                  programmatic weaknesses. At the time, I offered him congratula-
                  tions and condolences, but I was delighted he accepted the chal-
                  lenge.
                  When he first testified here, last April, I said that too often this
                  subcommittee and others had encountered at USAID instances of
                  arrogance and detachment from the impoverished reality of the
                  people in countries where USAID operates, and we'd encountered
                  poorly designed projects, mega-contracts that were touted as suc-
                  cess stories, but which enriched the contractors more than they
                  helped the intended beneficiaries, and taxpayer money was wasted.
                    If you want to change the bureaucracy-any bureaucracy, chang-
                  ing the culture takes time. I continue to believe strongly that
                  USAID needs to become a more efficient, accessible, flexible, and
                  less risk-averse agency that rewards creativity and focuses on
                  building the capacity of local people and governments in countries
                  where the United States has interests. That's just about every-
                  where in the world. But I have seen steady process under Adminis-
                  trator Shah. And I compliment you for that. I mentioned out back
                  when we were talking, I've read your speeches. You have not
                  whitewashed problems the way some others did in the past. You've

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