Review of Economic Assistance Provided to the Republic of the Philippines for Development Purposes

GAO reviewed selected aspects of United States foreign assistance, both economic and military, provided to the Republic of the Philippines. This report includes matters involving the administration of the economic assistance program in the Philippines, with particular emphasis on grant aid and loans provided for development purposes. In our review, we examined the effectiveness of management controls within the Agency for International Development in developing and carrying out the program in accordance with established United States policies and objectives. Our review was directed toward (1) measuring the effectiveness of the program in achieving its intended economic goals, (2) identifying problems that restrict the effective use of assistance, (3) evaluating the utilization and maintenance of equipment and facilities provided as economic assistance, (4) considering whether the United States was providing assistance prematurely or unnecessarily, and (5) evaluating the administration of the program by United States agencies, including coordination with other agencies within the Philippines. Our review was conducted both in Washington and in the Philippines. In Washington, we examined pertinent records of the Agency for International Development. In the Philippines, we discussed United States economic assistance objectives and programs with representatives of the United States Embassy and the United States Operations Mission to the Philippines. We also examined programs and project records and reports in detail and visited major economic assistance projects to observe the extent to which United States assistance was being used in the furtherance of program objectives.