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Foreign Aid: Problems and Issues Affecting Economic Assistance

  Premium   Download PDF Now (48 pages)
Report Type Reports and Testimonies
Report Date Dec. 30, 1988
Report No. NSIAD-89-61BR
Subject
Summary:

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

GAO found that U.S. bilateral assistance programs had been undermined due to: (1) recipients' inability to provide agreed-upon funding and recurrent cost financing; (2) U.S. failure to effectively use Economic Support Fund and food aid to achieve economic development and policy reforms overseas; (3) recipients' inability to service existing debt and borrow new funds; (4) unsuccessful efforts by the Agency for International Development (AID) to reduce narcotics cultivation through crop substitution and area development; (5) the impact of Acquired Immune Deficiency Syndrome on recipients, which would likely increase their demands for assistance; and (6) recipients' inadequate financial management and accounting procedures over cash transfers and local currency to ensure that assistance is used for intended purposes.

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