Summary: GAO reviews of bilateral economic assistance continue to emphasize programs which are managed and disbursed by the Agency for International Development (AID). GAO has seen recent AID progress toward improved project planning and implementation in its food, health, natural resource conservation, and human resource development programs, but much needs to be done. Preliminary results of the GAO study confirm the concern of both GAO and an inspector general for AID that: (1) AID has not accumulated complete data on the extent of its host-country activities, and (2) accountability processes and procurement procedures could be improved. Specifically, AID has recently placed increased emphasis on mobilizing greater participation of the U.S.-private sector in overseas development to help developing countries decrease their need for traditional forms of U.S. assistance; however, GAO is still concerned about the adequacy of AID monitoring and administration of assistance programs such as those supported by the Economic Support Fund, the Peace Corps, and the Inter-American Foundation. U.S. involvement in refugee programs were also covered in this review, and GAO noted a need for program efficiency and identified needed improvements for management attention. In the area of multilateral economic assistance, GAO has concentrated on identifying opportunities to reduce costs and improve management effectivness, and it has recommended that U.S. efforts be intensified to overcome the slow progress of the United Nations to control costs by identifying and reducing marginal activities. GAO is also planning a study of Administration proposals for changes in U.S. participation in international organizations and financial institutions. Providing military aid to countries with severe economic problems is a major concern of GAO, and climbing interest rates are making these loans a drain on the limited resources of many recipient countries. GAO is looking at the options available to the United States in dealing with strategic allies which are in need of military equipment but which are unable to afford the high costs of their defense needs.
