Category: General

  • Predictions for the 2025 Government Shutdown

    The government shutdown that started yesterday is going to be rough. Negotiations between Democrats and Republicans have been minimal since President Trump assumed office in January. The President’s ability to impose his will on the US Government seems nearly limitless. As a USAID contractor, I experienced an early impact when a government agency, previously authorized by Congress, was unilaterally closed. Subsequently, Republicans rescinded some of USAID’s appropriated funds, and President Trump utilized a “pocket rescission” to remove additional funds. While USAID was a prominent example, various grants and contracts across the government have seen cuts, with funds deliberately underspent if they were not aligned with presidential priorities. Given this history of the President disregarding Congressional mandates on spending, I don’t see why Democrats in Congress will approve further funding for his administration.

    There are three potential resolutions to this shutdown.

    The conventional approach involves a compromise negotiated by members of the Senate. Republicans might agree to maintain some Affordable Care Act health insurance subsidies and commit to no further funding rescissions. This could be well-received by their constituents, many of whom face significant increases in healthcare premiums during the upcoming open enrollment. It would also mitigate a key campaign point for Democrats next year. However, President Trump has shown little inclination to compromise with the “Radical Left,” and hardline House Republicans would likely resist increased costs. Without a Republican compromise, Democrats may lack the political leverage to support ending the shutdown.

    A second possibility is for Senate Republicans to end the filibuster for continuing resolutions. The filibuster, a Senate creation enshrined in its rules, has been gradually eroded by both parties over the years. Under President Obama, Democrats removed it for most federal judges, and during President Trump’s first administration, Republicans extended this to Supreme Court judges. The original intent of the filibuster was to compel the majority party to collaborate with the minority to reach agreements, upholding the Senate’s reputation as “the world’s greatest deliberative body.” However, in today’s deeply polarized environment, debates rarely sway Senators’ opinions. Senate Republicans could simply alter the rules and pass the continuing resolution. Senators from both parties have been hesitant to take this step, perhaps reluctant to acknowledge a diminished role for deliberation.

    The most unconventional option involves President Trump instructing the Executive Branch to begin paying its bills. The concept that government must cease operations without a Congressional budget originated from Attorney General Benjamin Civiletti’s 1980 legal opinion, stating that the federal government could not continue without appropriated funds. Government shutdowns evolved into their current form of political theater in the 1990s. In this scenario, President Trump could allow a few weeks for the Senate to attempt a compromise. As pressure mounts to pay essential workers and businesses with outstanding invoices, he could then announce that he is authorizing these payments. It remains to be seen if Democrats in Congress would oppose the payment of federal workers. With Congress having potentially relinquished its role in setting the federal budget, President Trump could assert authority over federal funding allocation. A concerning aspect of this scenario is the possibility that Congressional Republicans might be unwilling to reclaim budgetary control, thereby allowing the “shutdown” to persist indefinitely.

    I hope these predictions are incorrect and that a swift resolution to this situation is found. While government shutdowns may serve political interests and attract attention, they ultimately cause hardship across the entire country, affecting all states regardless of their political alignment.

  • Lying wasn’t Greg Mortenson’s biggest sin

    MortensonOn Tuesday, Greg Mortenson reappeared after the scandal surrounding his books and charity to apologize for lying. “I stand by the stories. The stories happened, but … not in the sequence or the timing,” Mortenson told Brokaw. If his only fault was rearranging the facts, then I would never have cared. After all, All Marketers are Liars Tell Stories.I don't mind that he changed the truth around a bit to make a good story.

    What really upset me was finding out that he didn't run a charity focused on building schools in Afghanistan. Instead he ran a self-promotion company. Jon Krakauer's book, Three Cups of Deceit, was more damning of how poorly run the Central Asia Institute was than of the poor story telling. He showed how the Central Asia Institute seemed to exist more to promote and purchase Greg's book than to build schools. Rather than Greg's book being a source of income for the Institute, a large portion of the Institute's budget went to funding Greg's book tour and purchasing, at full market price, Greg's books. Many of the schools that were built weren't even being used.

    As Seth tells in All Marketers are Liars, everyone tells stories that have shades of untruth to them. Rearranging the facts to make a better story is fine as long as the central story is true. The real lie that Greg Mortenson told was claiming that he was trying to improve education in Afghanistan. Instead, he was just trying to get rich. This is why the Central Asia Institute has lost nearly all of its funding.

    By contrast, Kiva managed to survive largely unscathed when its great untruth was exposed.  Kiva claims to allow people to lend directly to small businesses in poor countries. Their website is full of stories of micro-entrepreneurs who need a little cash to grow their business. You can pick someone with a compelling story, lend them money, and when the loan is repaid so are you. It seems like a fun, easy way to help out. Except it doesn't work that way. Back in 2009, David Roodman showed that most entrepreneurs are funded well before their page even appears on the Kiva website. If the entrepreneur defaults on a loan, the intermediary organization that facilitates the loan repays it. There really isn't any link between the donor and the entrepreneur.

    Big scandal, right? No. Kiva quickly admitted that this was indeed the case and that it was a matter of logistics. The entrepreneur needed the cash quickly. It didn't make sense to make them wait for funding to come (or not come). Yes, the intermediary organziations would repay loans but that was to prevent occasional defaults from disqualifying them from managing future loans. Kiva was in the business of funding micro entrepreneurs, just not quite how they had originally described it. So Kiva is going strong while the Central Asia Institute is nearly closed.

    We all tell stories and no story is ever completely true. If the Central Asia Institute was doing great work in Afghanistan as Kiva is doing with microfinance, I would have easily forgiven Greg for playing with his facts. Instead, I feel as if his whole story was just a con.

  • International Development vs the International Development Industry

    Seth Godin has a great post today entitled "Music vs the Music Industry." His opening paragraph is as follows:

    The music industry is really focused on the ‘industry’ part and not so much on the ‘music’ part. This is the greatest moment in the history of music if your dream is to distribute as much music as possible to as many people as possible, or if your goal is to make it as easy as possible to become heard as a musician. There’s never been a time like this before. So if your focus is on music, it’s great. If your focus is on the industry part and the limos, the advances, the lawyers, polycarbonate and vinyl, it’s horrible. The shift that is happening right now is that the people who insist on keeping the world as it was are going to get more and more frustrated until they lose their jobs. People who want to invent a whole new set of rules, a new paradigm, can’t believe their good fortune and how lucky they are that the people in the industry aren’t noticing an opportunity…


    Those of us in international development face a similar paradox. This is a great time to be implementing projects overseas. National staff are far better educated and far more capable than they were twenty years ago. The world is a flatter place with more opportunities for everyone. Finally, it is much easier to connect to fellow practitioners, families, and friends (when I started working overseas twenty years ago, mail took two weeks in either direction and international phone calls were as high as $13/minute!). The combination of better people, more opportunities, and better communication makes our work much easier.

    Unfortunately for us expatriates, these trends also make us less important. When I started working overseas, most projects had several expats. Now, many international NGOs have only one fully paid expat and the national staffs run the projects. Additionally, national NGOs have become significant competitors for funding. Nationalizing the development business is a great trend, unless you are part of the international development industry and are looking to win contracts. 

    The international NGOs that are growing tend to fall into one of two categories:

    1. Hot Spot Heroes: Organizations like CHF International have grown dramatically by moving into hot spots like Iraq and Afghanistan. Others have grown by focusing on the natural disasters that seem to have hit with increasing frequency (earthquakes, hurricanes, and tsunamis). In all of these cases, the international organizations are moving into areas where the local capacity does not yet exist or has been overwhelmed by the problems.

    2. US Retail: Some NGOs have carved niches for themselves by creating a product that sells in the US or European market. Traditional versions of this are the adopt-a-kid campaigns of Plan International, World Vision, and Save the Children. Newer versions are the internet campaigns of Globalgiving.com or Kiva. Either way, the International NGO's role is more and more just collecting funds from overseas and transferring it to a local partner.

    The organizations that focus on obtaining grants from major donors are struggling. The latest downturn in the economy has meant that not only is competition stiffer, but there is less funding available. 

    As a frontline worker in development, I feel the pinch. Why should an organization hire an expatriate like myself and incur the cost of my housing, my kids' school fees, and my salary when they could hire a local far cheaper? I am fortunate that I already have my 10,000 hours of practice in and therefore will always be needed. However, I work with a lot of interns and volunteers. They frequently ask me how to get into international development work. I tell than that I don't know anymore. The game has changed. It is a great time for international development, but a tough time for the international development industry.