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Foreign Assistance: Accuracy of AID Statistics on Dollars Flowing Back to the U.S. Economy Is Doubtful

NSIAD-93-196 Published: Aug 03, 1993. Publicly Released: Sep 02, 1993.
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Highlights

Pursuant to a congressional request, GAO reviewed how the Agency for International Development (AID) determines the extent to which U.S. foreign economic assistance dollars flow back to the United States through the procurement of U.S. goods and services.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
U.S. Agency for International Development The Administrator, AID, should discuss with interested members of Congress the problems with the current system and seek their concurrence on using a less expensive and burdensome method to meet their information needs. If, after such discussions, AID decides to continue BARS, the reports submitted to Congress should prominently disclose BARS limitations, namely that BARS data is unverifiable and of doubtful accuracy and reliability, and that, at best, BARS data can only be used as a general indication of AID procurement from the United States.
Closed – Implemented
AID staff met with appropriate congressional staff and reached agreement on discontinuing the BARS report and replacing it with a less costly one-page summary of Buy American source data. AID estimated that moving to this new reporting system would save AID approximately $400,000 per year.

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Topics

Economic growthExportingForeign aid programsForeign economic assistanceForeign investments in USForeign trade agreementsInternational economic relationsManagement information systemsStatistical dataProcurement