Agency for International Development's Assistance to Jamaica

ID-83-45: Published: Apr 19, 1983. Publicly Released: Apr 19, 1983.

Additional Materials:

Contact:

Samuel W. Bowlin
(202) 512-6240
contact@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

GAO reviewed the Agency for International Development's (AID) assistance program to Jamaica.

Balance-of-payments assistance through Economic Support Fund and P.L. 80-480 programs can contribute to development. AID can influence Jamaican economic policies by making assistance conditional on implementation of reforms to encourage private sector and overall economic growth. GAO found that AID has generally not achieved substantial policy reforms. Mission officials believe that it is important to follow through with the AID plan to link assistance to implementation of policy reforms. Foreign exchange provided to Jamaica is intended to finance imports needed by the private sector to increase production and employment. With an improved monitoring process, GAO believes that AID could encourage Jamaica to increase productive imports from the United States. While AID requires that Jamaica provide local currency equivalent to the value of U.S. balance-of-payments assistance for agreed upon development projects and purposes, AID relies upon the Government of Jamaica to select up to 90 percent of the projects which will receive local currency. GAO believes that AID could assume a more active role in identifying and proposing development projects to receive local currency. Further, AID does not plan to perform on-site monitoring of local currency projects to ensure that budget funds are in fact provided for agreed upon purposes or to determine whether projects are progressing adequately.

Recommendations for Executive Action

  1. Status: Closed - Not Implemented

    Comments: AID stated that balance-of-payments assistance is not intended to result in additional Jamaican imports of productive goods and services from the U.S. It claims that the assistance can be used to purchase imports from any source and that an attempt to induce additional purchases from the U.S. would delay the provision of foreign exchange and be inconsistent with Jamaica's developmental needs.

    Recommendation: The Administrator, AID, should implement a system to monitor actual imports from the United States as a basis for assuring that productive imports from the United States increase.

    Agency Affected: United States Agency for International Development

  2. Status: Closed - Not Implemented

    Comments: AID believes that: (1) Jamaica uses counterpart funds for priority purposes and increased AID participation in selecting projects to be funded is unnecessary; (2) additional action to program local currency use would be inappropriate because local currencies belong to Jamaica; and (3) local currencies are being used to support agreed-on activities, and AID lacks the manpower to monitor locally.

    Recommendation: The Administrator, AID, should attempt to identify an increasing portion of the development project for which local currency will be allocated and monitor on a spot basis the end use of the local currency.

    Agency Affected: United States Agency for International Development

 

Explore the full database of GAO's Open Recommendations »

Sep 22, 2016

Sep 20, 2016

Sep 7, 2016

Aug 31, 2016

Aug 25, 2016

Aug 15, 2016

Jul 14, 2016

Jul 6, 2016

Looking for more? Browse all our products here