International Development Cooperation Administration Message to the Congress on the Proposed Agency.

To the Congress of the United States:

As required by Title III of the International Development and Food Assistance Act of 1978, I am writing to inform you of the steps I have taken and propose to take to strengthen the coordination of U.S. economic policies affecting developing countries.

I propose to create an International Development Cooperation Administration (IDCA) as an independent agency within the executive branch. The IDCA Director would report both to me and to the Secretary of State, and would serve as our principal international development advisor. The Director would receive guidance concerning the foreign policy of the U.S. from the Secretary of State. He would submit his budget to the Office of Management and Budget after consulting with the Secretary.

The principal responsibilities of the IDCA Director would be to ensure that the varied instruments by which the U.S. contributes to development abroad are utilized effectively and in concert, and that the efforts of U.S. bilateral programs and those of the multilateral development institutions are complementary. To carry out those responsibilities, the IDCA Director would establish and control the budgets and policies of IDCA's several component agencies, and make recommendations to me concerning the appointment and removal of senior officials of each component. IDCA would contain:

• The Agency for International Development.

• The Overseas Private Investment Corporation, of whose Board of Directors the IDCA Director would become Chairman.

• A new Institute for Technological Cooperation designed to promote scientific and technological research in the developing countries, which I have proposed through legislative amendment.

In addition:

• Lead responsibility for policy and budget for our voluntary contributions to the following international organizations will be transferred to IDCA: UN Development Program; UNICEF; OAS Technical Assistance Funds; UN Capital Development Fund; UN Educational and Training Program for Southern Africa; UN/FAO World Food Program; FAO Post Harvest Losses Fund; and UN Disaster Relief Organization.

• Existing arrangements with regard to the multilateral development banks (MDBs) would be modified so that the Secretary of the Treasury will consult with the IDCA Director in the selection of candidates for the U.S. Executive Director and Deputy Executive Director positions in the MDBs, and the IDCA Director will advise U.S. Executive Directors on MDB projects and program proposals.

• The IDCA Director would take part in executive branch decisionmaking concerning such matters affecting international development as trade and monetary issues; he would speak to the relative priority of development and other U.S. objectives in respect of these and other issues. He would replace the AID Administrator as Chair of the Development Coordination Committee.

• I have directed OMB to review alternative organizational arrangements respecting all ACTION programs, and will consider the possible relation of Peace Corps to IDCA in light of the conclusions of that review.

I intend to propose the creation of IDCA under the reorganization authority renewed by Congress in 1977. In addition, various administrative and program adjustments will be made by Executive order and agency delegation.

I believe these steps will substantially strengthen the coordination of U.S. policies affecting the developing world, and will lead to a more coherent strategy of development and the more effective use of the various bilateral and multilateral instruments by which the U.S. can encourage the growth of developing economies. I am pleased that these actions and proposals are similar to those proposed last year by the late Senator Hubert H. Humphrey. I look forward to joining with you to put them into operation.

JIMMY CARTER

The White House,

March 7, 1979.