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Poland and Hungary: Economic Transition and U.S. Assistance

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Report Type Reports and Testimonies
Report Date May 1, 1992
Report No. NSIAD-92-102
Subject
Summary:

In response to rapidly changing political and economic conditions in Poland and Hungary, the United States developed a short-term, experimental approach to economic assistance that assumed that (1) aid would be needed for only a 5-year transitional period; (2) regional rather than country-specific allocations of funds would enhance program flexibility; and (3) program planning, implementation, and management authority would stay in Washington, D.C., rather than be delegated to U.S. personnel abroad. This approach worked during the program's early phase; however, as circumstances changed and the economic problems facing Poland and Hungary became more fully known, some of the underlying program assumptions proved unrealistic. The U.S. approach now hinders the host countries' planning for and prioritizing of assistance, limits the flow of information between the United States and the host countries, and complicates and may hamper management of the program.

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