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Foreign Aid: Problems and Issues Affecting Economic Assistance

NSIAD-89-61BR Published: Dec 30, 1988. Publicly Released: Jan 11, 1989.
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Highlights

In response to a congressional request, GAO identified key issues and problems relating to the U.S. foreign economic assistance program.

Recommendations

Matter for Congressional Consideration

Matter Status Comments
Congress should structure U.S. bilateral assistance according to the recipient's capability to support projects. Options include emphasizing projects that lessen the administrative and financial burden on recipients, stressing alternatives to project assistance, and making new and continued project funding contingent on recipient compliance with counterpart and recurrent cost-funding agreements.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in the report.
Congress should strengthen efforts to encourage recipient economic policy reform by clarifying specific reform objectives, establishing time frames or milestones for achieving stated reforms, and periodically assessing reform progress and impact of U.S. assistance.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in the report.
Congress should develop budget strategies to minimize the pipeline problem, consider alternatives to earmarking funds and to programming development assistance by functional accounts, and streamline reprogramming requirements.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in the report.
Congress should focus AID programs on more manageable units by decreasing the total number of countries in which AID missions and field offices are located, concentrating AID resources and personnel on key countries, and maintaining a limited in-country presence through U.S. embassy staff in other nations, concentrating resources on fewer or larger projects, and setting a minimum funding level per project.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in this report.
Congress should develop an overall debt relief policy that determines how much aid is needed, the U.S. share, and the most appropriate mechanisms for delivery.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in the report.
Congress should determine if AID should play a greater role in U.S. efforts to reduce narcotics production and, if so, what that role should be.
Closed – Not Implemented
GAO is closing this recommendation because GAO General Management Review of AID will monitor: (1) action taken on these proposals; and (2) the extent matters are considered in the report.

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Topics

AIDSAgricultural assistanceDrug traffickingFederal aid to foreign countriesFinancial managementForeign economic assistanceInternal controlsInternational food programsInternational relationsNarcotics