Foreign Assistance:

U.S. Support for Caribbean Basin Assembly Industries

NSIAD-94-31: Published: Dec 29, 1993. Publicly Released: Feb 4, 1994.

Additional Materials:

Contact:

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

Pursuant to a congressional request, GAO reviewed the: (1) impact that U.S. policies and programs have on the growth of assembly industries in the Caribbean Basin and on U.S. investment in these industries; (2) relationship between foreign assistance prohibitions and other foreign assistance objectives; and (3) implications for future U.S. foreign assistance and trade policies in the Basin.

GAO found that: (1) U.S. foreign assistance policies and programs support the growth of assembly operations in the Caribbean Basin; (2) there are a number of factors that affect U.S. foreign investment decisions; (3) U.S. company officials cite access to cheap labor as the most important reason for establishing assembly operations in the Caribbean Basin; (4) assembly industries create jobs but provide an uncertain basis for future development in the Caribbean Basin; (5) assembly plants in the Caribbean Basin have a mixed impact on workers by providing employment with only a subsistence-level of income; (6) most of the 53 plants visited appeared to provide a reasonably safe and healthy working environment; (7) foreign assistance legislation does not provide the Agency for International Development (AID) with a clear mandate to take a new direction in private-sector development and trade and investment programming; (8) AID future orientation to private-sector development is uncertain; (9) the U.S. government lacks an overall export promotion strategy; and (10) AID is in the process of developing a new foreign assistance strategy and reorganizing its agency.

Oct 21, 2014

Sep 24, 2014

Sep 10, 2014

Sep 9, 2014

Aug 28, 2014

Jul 24, 2014

Jul 21, 2014

Looking for more? Browse all our products here