Conditionality is the agreement between a donor and a recipient of funds that the recipient doesn't get the funds without meeting some conditions. For instance, your kid doesn't get an allowance if they don't mow the lawn. But, the practice has been rare related to US foreign aid to other countries, or Federal funding to the states (i.e. for medicaid). They get funds without major conditions like, don't waste it, don't let it get stolen due to corruption, make sure to have maintenance systems to preserve the investment, etc.
We have talked in the past how the State Dept. doesn't establish or enforce conditions to require countries receiving foreign aid or reconstruction funds to establish strict, disciplined controls over the funds and spending. That includes requirements to establish strong anti-corruption systems resulting in arrests and prosecutions of even high level officials who are prosecuted.
But, there is hope!
In the past, we have mentioned that the UN established foreign aid conditions for anti-corruption systems in one country, and they actually stopped providing the funds for a large construction project when the systems were not implemented. That clearly was a lesson learned from the UN's Oil for Food programs in Iraq that resulted in lots of corruption.
And, the head of SIGIR, Stuart Bowen, and his leadership team testified before Congress earlier this year saying that conditionality needs to be implemented before more funds are given to the Iraqi government for reconstruction spending.
But, now the big Kahuna of conservative issues is also speaking of it. Newt Gingrich, in his proposed 12-step "American Solutions", includes this as one of his 12 steps:
The Government Accountability Office recently released a report that shows over 10 percent of Medicaid payments were improper in 2007, or $32.7 billion in one year. In just New York along, over $5 billion a year is wasted as a result of fraud. (Note: Audits have disclosed over $1-billion in medicaid fraud in Florida, alone - vj).
Such fraud and abuse in our entitlement programs drives up costs, and it will only get worse as more Baby Boomers retire and enter the system.
When government decides to spend our tax-dollars, we must demand honesty, transparency and accountability. Therefore, states must be required to adopt best practices, such as moving to electronic records, if they are to receive any taxpayer money."
You can read about all Newt's steps HERE.
There is hope, if strict, and enforced anti-fraud and anti-corruption programs become the normal requirement to get any Federal funds!!!
vj
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