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

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Recommendations for Executive Action

Agency Affected Recommendation Status
United States Agency for International Development 1. 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.
Closed - Not Implemented
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.
United States Agency for International Development 2. 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.
Closed - Not Implemented
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.

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