Summary: After considering the Administration's proposal for the creation of an International Development Cooperation Administration (IDCA), it was concluded that a stronger reorganization proposal is needed. Four areas were addressed: key changes in the past decade that affect the character of the problem of coordinating policies and programs bearing upon the development of developing countries; deficiencies in the present system of coordination centered on the Development Coordination Committee; the adequacy of the IDCA proposal for dealing with deficiencies in present arrangements; and some recommendations for change that could strengthen the prospects for the success of IDCA. The issue of who should manage U.S. participation in the multilateral development banks has been at the center of the debate over reorganization. The coordination of multilateral bank and bilateral programs presents major coordination questions. It is recommended that the U.S. Deputy Executive Director of each of the multilateral banks should be made an IDCA representative. The IDCA Director should control a large foreign aid contingency fund in order to be able to respond to international political needs for foreign aid without subordinating development goals to foreign policy requirements. Effective coordination will require more staff, and it is suggested that the personnel ceiling be lifted.
