Memorandum To The Development Assistance Committee

V 4I-1

United States

1988

Annual Aid Review

Memorandum To The Development Assistance Committee

Agency For International Development December 1988

US ANNUAL AID REVIEW MEMORANDUM

TABLE OF CONTENTS

Page

I Major Policy Orientations 1

II ODA Volume 9

III Aid Quality Composition and Financial Terms 16

IV Public Opinion and Information 22

V Multilateral Contributions 25 A Multilateral Development Banks 25 B Contributions to International Organizations 28

VI Geographical Distribution 37

VII Aid Coordination Country Programs and Development Strategies 40

VIII Adapting Aid Policies to Policy Reform and Structural Adjustment Efforts of Developing Countries 45

IX Technical Cooperation 47

X Aid Management 48

XI Associated Financing and Related Aspects 53

XII Procurement Policies and Practices 55

XIII Sectoral Orientation of Aid 56 A Aid for Agriculture Rural Development

and Food Security 56 B Aid for Energy 58 C Aid for Health and Population 59 D Aid for Education and Human Resources 62

XIV Aid and the Environment 64

XV Women in Development 69 A Implementation of WID Policies 69 B Programs to Reflect Distinct Roles

and Functions of Women 70 C Actions to Promote WID Concerns in

NGOs and Muliilatecal Organizations 72 D Measures to Support WID Research 72 E Development Education Programs 73

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Page

XVI Non-Governmental Organizations (NGOs) 75 A Role and Share of Private Voluntary

Organizations US Aid Programs 75 B PVO Activities in Development Education 76 C Evaluation 78

XVII Broader Instruments of Development Cooperation 82 A The Private Enterprise Initiative 82 B Initiatives to Increase Trade and

Investment in Developing Countries 87

STATISTICAL TABLES

Iil US ODA to Multilateral Organizations 10 112 ODA Commitments SeiKcted Trends 11 113 US Comprehensivi Development Budget 12 II4a US Official Commitments and Disbursements

Program 14 II4b US Offi-ial Commit-ents and Disbursements

Type of Transaction 15

IIIl Commltmznts of US Official Programs 19 1112 US Oficial Commitments Average Loan Terms 20 1113 US Economiu Assistance Gross 21 III4 US Functional Development Assistance 21

V1 Multilateral Development Banks FY 19S6-1989 27 V2 Voluntary Conitribution to Interreional

Organizations 33

V3 International Organization and Programs 35

V11 US Bilateral ODA Net Disbursements

Geographlcal Distribution by Region 1984-1987 38 V112 US Bilateral ODA Net Disbursements

Major Recipients by Region 1934-198- 39

XIIIl ARDN Resource Allocations FY 1987-1989 56

XIII2 PL 480 Food Aid Program Levels FY 1987-1989 58

XVIII Structure of US Official and Private Flows 92 XVII2 Summary of US Official and Private Flows 93

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UNITED STATES ANNUAL AID REVIEW MEMORANDUM

I MAJOR POLICY ORIENTATIONS

A Overview

The United States founds its development assistance policy on the belief that broad-based sustainable economic growthfueled by the private sector provides the best path for developing countries to follow in their quest for economic health and stability To facilitate growth in developingcountries the United States engages in policy dialogue to encourage removal of those economic impediments which stifle dynamic private sector activity The United States also provides countries engaged in structural adjustment programswith assistance to weather the short-term difficulties that such programs may entail

While encouraging the dismantling of ineffective policies the United States also searches for ways to build up the institutions and practices that will make sustainabilitypossible The United States also recognizes that the ultimate beneficiaries of economic growth are the absolute poor in developing societies The commitment to established programsin such areas as technology transfer institution building and health remains firm

During 1987 and 1988 the United States made virtually no changes to the policy orientation of development assistance Instead the methods employed for encouraging sustainabilityand for aiding the private sector were further refined throughthe issuance of additional policy guidance

Sustainable economic growth demands a long-term perspectiveShort-term economic growth based on despoliation of the environment may only lead to greater hardship in the future To ensure that environmental concerns are throughly integratedinto US development assistance activities the Agency for International Development (AID) has issued a new comprehensive policy paper on environment which reinforces the concern for the environmental long an element of the US assistance program

US attention to women in development (WID) has also been sharpened through issuance of stronger guidelines for the integration of WID considerations into all aspects of AID activity The role of women as economic actors in importantsectors of developing country economies needs to be carefullyassessed to ensure that development assistance activities do not have the unintended consequence of robbing women and their children of the sources of income vital to survival At the same time activities that increase the options of women in work and education can have far-reaching beneficial effects for developing country populations as a whole

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The demand for essential public services in developing countries is rapidly exceeding the ability of governments to respond New ways must be found to meet basic requirements for health care sanitation education and other social services Much more attention must be given to private sector provision of services AID is actively engaged in eploring ways of fostering expanded private capacity to meet public needs

Another threat to sustainable growth is the specter of acquired immune deficiency syndrome (AIDS) which is depriving developing societies of the young adults who would normally be the primary authors of economic growth as well as its beneficiaries The United States has formulated policy guidance on this problem and will devote increased funding to the search for a solution

Two newly-issued policy guidance documents cover the question of how the US public sector can more effectively intervene on behalf of the private sector in a developing country Recently approved guidelines on microenterprise development should help to rationalize US efforts on behalf of this promising segmentof the developing country private sector Another new policy paper will assist AID Missions in fostering financial markets in host countries

While working toward sustainable economic growth in developing countries the US development assistance program must also conform to the imperative necessity of reducing the US budgetdeficit One way to intensify the impact of scarce official development assistance may be to work for better intragovernmental coordination to ensure that the goal of sustainable economic growth is forwarded by all the many contacts that the US Government has with developing countries By focusing scarce resources on those countries where recipient cooperation and chances for success are greatest the United States hopes to derive maximum benefit from assistance dollars President Reagans End Hunger Initiative represents an attempt to improve US assistance efforts in sub-Saharan Africa along these lines

As the United States looks to the 1990s and beyond the development community both public and private is exploring ways to reorient assistance policies to better deal with the new face of the world economy Discussion continues on the best methods for assisting the advanced developing countries with their particular challenges The US Congress AID and private think-tanks are actively considering the future of US foreign assistance as work commences on a thorough revision of the Foreign Assistance Act of 1961

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B Specific Policy Guidance and Program Initiatives

1 Environment and Natural Resources

In April 1988 AID published a Policy Paper on Environment and Natural Resources Although the Agency has had several documents guiding its environmental activities the PolicyPaper is the first comprehensive statement on the subject

AID recognizes that quality of life depends not only on economic and social development but on environmental quality as well Clean air and water fertile soil and a sustainable supply of renewable natural resources are elements which contribute to the quality of life

The basic premise that sustained economic growth is possibleonly with protection and conservation of natural resources underlies the Agencys central environmental objectiveAIDs policy is to assist developing countries to conserve and protect the environment and to manage their exploited resources for sustainable yields

AIDs assistance will continue to focus on three broad environmental program areas sustainable production maintaininq natural ecosystems and meeting human needs byimproving environmental quality Within these program areas AID will support forestry (including natural forest management reforestation agroforestry and multipurpose tree and agroforestry research) soil conservation and watershed management resource inventories environmental planning and education land use planning ranqeland management water and wastewater treatment systems improved industrial and urban pollution control and coastal resources management Efforts to protect tropical forests and preserve biological diversity will be emphasized The strategic focus and program mix will vary from country to country based on local conditions needs and areas of greatest opportunity

AID is also increasing efforts to integrate economics and resource conservation The Agency recently published a Manual for Project Economic Analysis which specifically addresses the environmental costs and benefits resulting from project activities tLat should be included in project analysis In addition the Agency will soon publish guidelines on hew to use economic incentives to protect natural resources including conserving biological diversity These guidelines will focus on the economic benefits of sustainable resource use

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2 WID Initiative Strengthening of the WID Program

In order to ensure the institutionalization of WID in AID programs the Administrator has requested that a number of specific action items be implemented and adhered to effectively

All bureaus are responsible for developing and implementing WID Action Plans that include systems and procedures as well as calendar-driven benchmarks to address and monitor women in development issues throughout their programs and projects Geographical bureaus are responsible for ensuring that their respective field missions also develop such WID Action Plans

All bureaus and field missions will reflect sex-disaggregated data in AIDs program documents and all new data collection activities will be 6ex-disaggregated for AID project nonproject assistance and reporting documents

All bureaus and field missions will ensure that AIDs country strategy program project nonproject assistance and reporting documents explicitly describe strategies to involve women benefits and impediments to womens Participation in development and benchmarks to measure womens participation in and benefits from development activities

Specific women in development training including country specific regional and Washington-based should be considered a priority for AID personnel particularly in the areas of agriculture private enterprise development including microshyand small-scale enterprise and environmentnatural resource management

The Office of Women in Development is to monitor implementation and begin the process of revising appropriate AID handbooks to ensure that gender analysis becomes a general practice within the Agency

When items are difficult to achieve bureaus and field

missions will ensure that there is a substantive analysis as to the obstacles preventing completion of such efforts and that an explanation of how these obstacles will be overcome is submitted to the Office of Women in Development

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3 Private Sector Activities in Health and Family Planning

AID strongly encourages private sector solutions to development problems In health and family planning this has led to various innovative undertakings

Initially AIDs focus of involvement with the private sector was to cost share Over the last 15 years private voluntaryorganizations were provided with assistance to develop their income generating capabilities The public sector received assistance to research and adopt user fee structures Existing commercial channels in AID countries (eg pharmacies advertising firms) were tapped to market and distribute health and family planning products

As these earlier initiatives became institutionalized newer activities began to focus more on encouraging and enabling the private sector to take on the provision of health and familyplanning independently For example since 1981 AIDs health and population programs have provided assistance in areas such as private local production employer-provided family planning and health services microenterprise development insurance and the privatization of public entities

Examples of this work include the following

AID has provided assistance to local firms in Mexico Guatemala Paraguay Costa Rica Ghana Uganda and Zaire in the local production of oral rehydration salts (ORS)

In 1985 AID expanded on a concept begun in Kenya to enable private firms to provide family planning to their employees The concept expanded worldwide and company projects are in progress in approximately 20 recipient countries Some are with affiliates of large multinationals such as Chevron Unilever Mobil Oil Nabisco British American Tobacco and Firestone where international replication is possible Others are with national industry leaders where national or sectoral replication is expected

In 1985 ATD began providing assistance for the development of microenterprises made up of health professionals In Mexico for example 60 private community clinics have been established and staffed with young unemployed physicians to provide family planning child survival and other health services to marginal peri-urban areas not covered by public health services

In 1987 approximately 1 of AIDs health budget and approximately 4 of our population budget was devoted to the

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private provision of services While budget shares are low recurrent project support will not be necessary once local production of ORS is underway or a microenterprise is self-sufficient new activities are continually beginning

AID views this assistance for the private sector provision of health and family planning as a useful approach for sustaining our development efforts

4 AIDS Prevention and Control

Acquired immune deficiency syndrome (AIDS) is a problem of international proportion which is particularly severe in many AID-recipient countries It is believed that at least half of all AIDS cases have occurred in Africa although most of these cases have not been reported

Early in 1987 the AID Administrator approved AID Policy Guidance on AIDS and established an AIDS Working Group The Agency AIDS policy endorses the leadership of the World Health Organization (WHO) in developing and coordinating an international AIDS program through the Global Programme on AIDS

In order to provide support Lo countries AID developed in FY 1987 a worldwide AIDS project with two major components The Public Health Communications Component (AIDSCOM) pivides public health communication assistance and the AIDS Technical Assistance Component (AIDSTECH) offers technical assistance in surveillance blood screening and the prevention of human immunodeficiency virus (HIV) spread

In FY 1988 AID provided 15 million in AIDS funds to the WHO Global Program on AIDS and 15 million to AIDSCOM AIDSTECH and field missions in selected countries with high levels of AIDS or at high risk for AIDS spread

5 Microenterprise Development

The problems in developing countries especially of the poorest developing countries point to an urgent need for higher levels of economic production increased foreign exchange earnings expanded employment opportunities and higher incomes AID believes that microenterprises offer great opportunities for the expansion-of developing economies and can eventually become an important constituency for the constructive policy change that will advance economic development Microenterprise development is an element of AIDs emphasis on market-based growth and the involvement of the private sector in development

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AID adopted new microenterprise program guidelines in October 1988 These guidelines were developed to ensure that the resources provided under this program benefit the many and diverse business efforts of the poor The objective is to help people with limited or no access to capital achieve a level and quality of business activity which will permit increased access to formal financing and technical services and which will expand productive employment The guidelines address the definition and characteristics of microenterprises the appropriate policy environment for improving microenterprise performance the role of institutional intermediaries technical assistance and the terms under which assistance is provided to microenterprises

6 Financial Markets Development

Effective financial markets are indispensable to the pursuit of sustained broad-based economic growth Unfortunately financial markets development is one of the most complex areas in the development field The growing inadequacy of financial systems as countries develop often leads to government intervention in the financial system To the extent that government involvement in financial systems is misdirected the development of efficient financial markets will be inhibited

To help its missions clarify their role in financial markets development AID adopted a new policy on financial markets development that provides guidance on the development of AIDs programs and projects in financial markets AID intends to promote a system of financial markets that is integrated and relatively undistorted one that relies heavily on competitive financial institutions and on policies to facilitate competition This system should be capable of effectively mobilizing private savings allocating that savings to investments yielding maximum returns and maximizing the participation of the general populace AID can be a catalyst for financial liberalization in developing countries through both the policy dialogue process and project assistance

Different countries depending on their stages of economic and financial markets development may require ditferent kinds of assistance It is expected that AID issions will concentrate on policy reforms that emphasize greater reliance on competitive market-based allocation systems and on project assistance to and through private sector institutions

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7 Initiative to End Hunger in Africa

The End Hunger Initiative is a long-term US commitment to attack the causes of hunger in Africa through promotion of economic growth policy reform and private sector development

The Initiative was begun in 1987 at the direction of the President Its implementation is overseen by a Coordinating Committee composed of representatives of eleven Executive Branch agencies and chaired by the Agency for International Development

The Committees main task is to coordinate US policies on aid food aid debt trade and investment in Africa in order to promote growth and development Other functions are to tailor US programs to the specific needs of individual countries improve coordination with other donors and relate US aid allocations more closely to country performance in policy reform The Committee also seeks to encourage private sector involvement in Africa

One of the first steps in implementing the Initiative came with congressional approval of the Development Fund for Africa for fiscal year 1988 AID has used the increased flexibility of

this Fund to integrate project and nonproject resources into a

more coherent package and to make assistance programs in Africa

more performance-based

Under the Initiative the United States is also 1) encouraging aAmerican investment in Africa 2) urging Africa to press for

more open trade regime in the Uruguay Round of GATT

particularly in regard to agricultural products and 3) working

with other developed countries to ease Africas debt service

burden

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II THF VOLUME OF OFFICIAL DEVELOPMENT ASSISTANCE

A ODA Disbursements and Commitments in 1986 and 1987

In calendar year 1987 net disbursements of US official development assistance (ODA) dropped by 6 in current dollar terms to $6945 million from $9564 million in 1986 The decrease reflected a return to more usual assistance levels after the high disbursement volume realized in 1985 and 1986 The 1987 decline led to an erosion of the proportion of total DAC ODA accounted for by the United States currently 22 as opposed to 26 in 1986 and 32 in 1985 US ODA as a percent of GNP also declined to 020 from 023 in the previous year

Net bilateral ODA decreased by 8 from $7602 million in 1986 to $7007 million in 1987 However the quality of bilateral ODA improved in 1987 over 95 of all net bilateral ODA was disbursed as grants The 44 decline in net bilateral lending in 1987 to $319 million from $569 million in 1986 is expected to become even more roticeable in 1988 as grant aid wiil constitute the bulk of US ODA

ODA dsbursements to multilateral organizations remained relatively consistent in 1987 at $1938 million following a net disbursement level of $1962 million in 1986 As in previous years the timing and magnitude of letter of credit issuances particularly those intended for the International Development Association (IDA) had a significant impact on the relative share of this component of total ODA

Individual international financial institutions (IFIs) typically receive new issuances of funds in by US fiscal year Major issuances for all institutions usually take place in the same calendar quarter The impact of these issuances on US ODA statistics depends on whether the new issuances take place in the first quarter of the fiscal year (December or during the subsequent quarters (March-September) December quarter issuances permit one calendar year to have two fiscal years worth of major issuances while a later calendar year may have no major issuances This results in multilateral ODA totals which show wide but misleading swings Recent issuance patterns to IDA (including the Special Facility for Sub-Saharan Africa) are shown below

Calendar year Issued to IDA Fiscal years included 1983 1190 FY 83 issued March-Sept 1983

amp FY 84 issued December 1983 1984 900 FY 85 issued December 1984 1985 0 no issuances 1986 742 FY 86 issued March-Sept 1986 1987 895 FY 87 issued March-Sept 1987

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Table II1 illustrates the effect of these patterns on ODA statistics The absence of a new letter of credit issuance to IDA in calendar 1985 caused multilateral disbursements for that year to appear low When IDA received a single fiscal years worth of issuances in 1986 net ODA to multilateral organizations showed an increase of 61 percent to $1962 million from $1221 million in 1985 Another single fiscal years worth of issuances in 1987 kept multilateral ODA at relatively the same level as the previous year

If the amount the multilaterals actually draw down for use each calendar year (encashments) is substituted for the amount issued to them (issuance basis) then the fluctuations in ODA to multilateral organizations are considerably less extreme as can be seen below

Table II1 US ODA to MultilaLeral Organizations

(net disbursements in $ millions) 1985 1986 1987

-

DAC Table 1 basis (issuance) -

Capital subscriptions 252 1132 1220 Net ODA to multilaterals 1221 1962 1938

Percent change in Net ODA to multilaterals -- +61 -1

Encashments basis Capital subscriptions 1302 1481 1212 Net ODA to multilaterals 2271 2311 1930

Percent change in Net ODA to multilaterals +2 -16

ODA commitments also registered a decline in 1987 to $9365 million from 410753 million in 1986 As was the case with disbursements commitments of bilateral grant and grant-like ODA returned to a level just exceeding that of calendaL year 1984 The decline in ODA loan commitments particularly in food aid loans and the contraction in contributions to the United Nations were already evident in 1986 but became even more marked in 1987

B ODA Trends and Future Prospects

As a means for assessing budgetary trends for ODA the wComprehensive Development Budget (table 113) although not analogous in componentry to US ODA transactions in all respects provides an order of magnitude for comparison with total budget authority for fiscal years 1987 through 1989 US efforts on behalf of developing countries have been and

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will continue to be constrained by the Government-wide imperative for deficit reduction In fiscal years 1984 1986 and 1987 the Comprehensive Development Budget accounted for 08 of total budget authority in fiscal year 1985 the Comprehensive Development Budget share represented 1 of total budget authority This share shrank to 07 in fiscal year 1988 and 06 in fiscal year 1989

Although calendar year ODA figures are difficult to predict a slight decline followed by several years of stability may reasonably be expected in the next two to three years ODA-to-GNP percentages are even more resistant to forecasting given the variety of scenarios for US economic growth in the near term but dramatic improvement in ODA as a percent of GNP is not anticipated

Table 112 ODA Commitments Selected Trends

(calendar year commitments in $millions)

1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13

Bilateral ODA 8144 9157 8746 7412 change -- +12 -4 -15

Bilateral grants 6284 7997 7742 6646 change -- +27 -3 -14

Bilateral loans 1860 1160 1004 766 change -- -38 -13 -24

of which Food aid loans 901 756 621 465

Multilateral ODA 2333 1122 2007 1953 change -- -52 +79 -3

of which Capital subs 1304 252 1132 1220 United Nations 772 729 690 562

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Table 113

United States Comprehensive Development Budget

(Budget Authority in $ millions)

FY 1987 FY 1988 FY 1989 ApropriatedActual Actual

BILATERAL ASSISTANCE 23116AID Development Assistance A1 21982 22726

Trade and Development 250 250 Program (TDP) 200

Ovecseas Private Investshy ment Corporation (OPIC) 2 1098110831 10596

Food for Peace (PL 480) 3271038762 32008

Economic Support Fund 317 317

Peacekeeping Operations 317 9898 98

Anti-Terrorism Assistance 15351380 1462Peace Corps 10101184 988Narcotics 166118 130Inter-American Foundation

66 70 80 African Del Foundation --- Nicaraguan Resistance (Humanitarian) 3385 3620 Migration amp Refugee Assistance 3609

--- 250 500 Emergency Refugee amp Migration Fund

78547 72280 74382Subtotal BILATERAL

MULTILATERAL ASSISTANCE 4

International Bank for 500558 402 Reconstruction amp Development

8301 9150 9950 International Development Assn

Contribution to the Special 648 Facility for sub-Saharan Africa

72 203 49 Intl Finance Corporation 90 73 African Development Bank

205 750 1050904African Development Fund 151

Asian Development Bank 132

280 1524914Asian Development Fund --shy316164 Inter-American Development Bank 173 ---

Fund for Special Operations 257

--- 13 IDB Investment Corporation

MIGA International Org amp Programs 2446 2261 2373(Voluntary Contributions)

1540714444 14502Subtotal MULTILATERAL

8979092991 86782Gross Total (7190)(AID) (7630) (7430)Offsetting Receipts GR------------- -------

8260085361 79352GRAND TOTAL

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Notes to Table II3

1

2

3

4

5

AID DA excludes miscellaneous trust funds and local currency programs includes IDCAAID operating expenses and the Foreign Service Retirement and Disability Fund OPIC does not request budget authority Puthority for loan guarantees is FY 1987 - $200 million FY 1988 - $200 million FY 1989 - $175 million PL 480 program levels are FY 1987 - $14631 million FY 1988 - $14820 million FY 1989 - $14070 million Does not include callable capital for the Multilateral Development Banks Includes inter alia UNDP UNICEF BAOWFP and IFAD

US Official Commitments and Disbursements Program

(Millions of dollars)

Cal endjr yearProgram Disbursements Commitments

1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i

Official Development Assistance Gross 889 8705 9408 10115 10460 9635 8232 9464 u477 10280 0753 9365

Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412

Foreign Assistance Act includingSocial Progress Trust Fund 4109 4571 5295 6617 6477 5904 4543 5530 5879 7211 6968 5933

Agricultural Trade Development and Assistance Act 1124 1261 1443 1782 1458 1286 1296 1053 1832 1486 1272 1176Long-term credit sales 603 660 729 930 781 668 755 486 941 15 700 537 Grants (including grant-like transactions) 520 601 714 852 677 618 541 566 890 620 572 639

Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130

Other including multiple reschedulingt 212 235 302 369 427 376 166 290 314 335 379 173

Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953

Capital subscription payments 2473 1650 1304 252 1132 1220 192 1569 1304 25 1132 1220African Development Bank -- 18 18 18 15 20 -- 18 18 18 15 20African Development Fund 58 100 50 -- 60 90 50 50 50 -- 60 90 Asian Development Bank

Ordinary capital 5 13 13 -- 11 13 () 13 13 -- 11 13 Asian Development Fund 238 110 100 91 96 91 132 100 100 91 96 91Inter-American Development Bank Interregional capital 109 40 38 40 36 16 62 38 38 40 36 16Fund for special operations 376 99 75 73 39 17 222 80 75 73 39 17

Inter-American Investment Corporation 13 13 International Bank for Reconstruction and Development 273 80 110 30 105 5r 126 80 110 30 105 56International Development Association 1400 1190 900 -- 742 895 700 1190 900 -- 42 895 International Finance Corporation 14 23 7 25 7

Foreign Assistance Act 343 364 396 375 352 269 303 398 452 367 314 286

Agricultural Trade Development and Assistance Act 157 158 177 211 187 104 182 147 202 156 183 105

Other 371 351 382 389 297 351 343 361 375 348 378 342

Other Official Flows Gross 3619 2714 3194 2603 2168 2108 3558 1173 2780 1879 1961 1996

Export-Import Bank 1892 1858 1464 1022 399 387 2311 758 1182 698 473 659 Commodity Credit Corporation 221 159 11 7 136 52 218 167 12 143 76Other including multiple rescheduling 1726 635 1571 1571 1763 1586 1196 197 1431 1169 1344 1261

Total Official Assistance Gross 12510 11419 12602 12718 12628 11743 11790 10637 13257 12159 12714 11361

Less than $500000 t Includes donations under section 416 of Agricultural Act of 1949 as amended in 1982 and grant-like transactions under the Commodity Credit Corporation Charter Act

Source Compiled by Bureau of Econm1c Analysis US Departmnert cf C-z-rce fr = de vallabl Jyopcrating agencies

October 31 1988

TABLE 1I4b

US Official Conmitments and Disbursements Type of transaction


Calendar yearType of transaction Disbursements Commitments

1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987

Official Developmertt Assistance Gross 8891 8705 9408 10115 10460 9635 8232 9464 1 10280 10753 9365

Bilateral 5 546 6 183 7149 8889 8 492 7692 6 112 6 989 8 144 9 157 8 746 7 412 Grants 61 6 W

(of which debt reorganization) - Grant-like 144 134 157 82 163 155 158 222 163 97 47 160 Loans 1630 1562 1415 1483 1274 920 1450 1376 1860 1160 1004 766

(of which debt reorganization) (74) (36) (40) (37) (53) (48) (35) (34) (39) (35) (52) (47)

Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953

Amortization received 564 543 607 616 711 606 SMSSsectsect SSSSS 555555 5Ssect5 S5sectsectSS S5sectS5Grant and grant-like recoveries 125 81 90 96 185 84 sect55555 555 555 555555 sect55sectSSSS5 5555

Official Development Assistance Net 8202 8081 8711 9403 9564 8945 5S555 5555 sect55555 555555 555555 sect55 5 4 Other Official Flows Gross 3619 2714 3194 2603 2168 2108 3558 1173 2780 1879 1961 1996

Bilateral grants - 150 150 --

Bilateral loans 3188 2293 2801 2177 1586 1661 3536 1149 2755 1854 1785 1964(of which debt reorganization) (272) (190) (1163) (1128) (1165) 1116 (146) (137) (1368) (1113) (1136) (1189)

Bilateral equity participation 431 421 393 426 432 447 23 25 26 25 26 32

Amortization received 2041 2658 2171 2425 2727 3888 S555 S55SSS $55sect5 555555 555555 5S5SS

Other Official Flows Net 157P 1023 -559 -1780 S55sect5S s55ss s55SssectSS 5SiSS iSSS56 178 5


Amortization received 2605 3201 2778 3041 3439 4494 sSSSs ss555 S5555S 555555 555555 SSMSS Recoveries 125 81 90 96 185 84 555 5 55555 555 555 sect5sect5sectsect

Total Official Assistance Net 9780 8137 9734 9581 9005 7166 ss55 5ss555 5s555 SUMSSS 555555 555555

Note Data in this table and in the accompanying table by program are from the US original submissions with minor adjustments Source Compiled by Bureau of Economic Analysis US Department of Commerce from information made available by operiting agencies October 31 1988

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III ODA QUALITYL COMPOSTTION AND FINANCIAL TERMS

A ODA Quality and Financial Terms

The steady decrease in the proportion of US official development assistance (ODA) committed as loans has led to continued improvement in the grant element of overall ODA Total ODA commitments carried an average grant element of 970 in 1987 compared with average grant elements of 966 in 1986 and 959 in 1985 The grant element of ODA commitments to least developed countries was 952 in 1987 a decrease from the 957 recorded in 1986

The Agency for International Development (AID) is not required by congressional legislation to extend any given proportion of development assistance as loans and the tendency in recent years has been to move away from lending for development projects and programs Current plans for fiscal year 1989 call for no new ODA loans to be added to the AID portfolio ODA lending commitments will continue to make up a significant proportion of US food aid but efforts are underway to ensure that the poorest and most heavily indebted sub-Saharan countries receive the maximum possible proportion of food aid in the form of grants

Since 1983 the average grant element of new ODA loans has remained constant at about 64 During both 1986 and 1987 a

small volume of new ODA loan commitments (about one eighth of total dollar value) continued to carry grant elements of less than 50 These commitments mostly for food aid loans extended to countries of relatively higher per capita income in

Latin America and Asia have had a dampening effect on the overall concessionality of new ODA lending

B Composition of US ODA

The US emphasis on the promotion of economic growth i developing countries has not diminished the commitment to the more direct forms of assistance provided through AIDs functional accounts As table 1113 indicates the balance between the budgetary category Development Assistance and the Economic Support Fund (ESF) is slowly being redressed in favor of the former The Development Fund for Africa (DFA) maintains fiscal year 1988 and 1989 funding for basic functional activities in sub-Saharan Africa and should be regarded as part of the resources available to functional accounts for those years as shown in table III4 Including the DFA US funding for functional areas increased in both fiscal years 1988 and 1989 The category other bilateral in table III4 includes humanitarian relief international narcotics assistance and three components of US technical cooperation (Peace Corps

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African Development Foundation and the Inter-American Foundation) Although these other technical cooperation programs are a small part of total ODA it is worth noting that even in the present tight budget climate their funding levels are rising

Unlike many other donor countries the United States does not have an ODA Budget The budgetary terms economic assistance or even development assistance are thus not precisely analogous to ODA In compiling ODA statistics for the Statistical Annex to this Memorandum the United States excludes certain economic assistance items altogether (support for UN peacekeeping operations and the portion of migration and refugee assistance used to resettle refugees in the United States) while others (nonconcessional Private Sector Revolving Fund loans) become part of other official flows (OOF)

C Debt Relief and Equivalent Measures

In the case of sub-Saharan Africa and of all the relatively least developed countries recent legislation gives the Administration the ability to accept repayment of certain loans with local currency or to waive repayment entirely Under this legislation effective in fiscal year 1990 the Administration may allow loans originally financed with Development Assistance funds or Economic Support Funds to be repaid in local currency which will then be applied to development activities in the debtor country If the President determines that sufficient local currencies are available to achieve development objectives he or she may waive the requirement of a local currency payment To be eligible the relatively least developed or sub-Saharan country must have an International Monetary Fund 3r World Bank economic reform program in place No decision has been taken as to whether this authority will be exercised

By agreement between the United States and the recipient country ESF cash transfer grants may be used to make service payments on certain types of debt Cash transfer agreements may include debt service as an agreed use where recipient country debt service is a significant barrier to growth and development where institutional arrangements preclude the traceable use of cash transfer dollars otherwise and especially where such a use will help to leverage additional flows of development finance Consistent with the agreed restructuring arrangements and payments scheduling of the Paris and London Clubs where applicable service of debt to the US Government has first priority

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The United States has played a key role in shaping the international debt strategy which is based on four guiding principles

First the central importance of economic growth and capital formation in easing the debt burden over time

Second the need for market-oriented reforms in debtor nations to achieve such growth

Third new debt and equity financing and the return of flight capital to help support such reforms

And fourth a case-by-case approach to address the individual needs of each debtor country

In order to help assure adequate financial flows the menu approach to financing packages has been developed to meet the diverse interests of both debtor nations and the financial community Such menus can include trade and project lending as well as instruments with debt reduction features Debtequity swaps- exit bonds and debtcharity swaps whereby US charitable organizations exchange bank claims with debtor nations for local funding of environmental educational or other programs can help to reduce the stock of debt The Internal Revenue Service issued Revenue Ruling 87-124 in November of 1987 to clarify the tax treatment of debtequity and debtcharity swaps

TABLE 1111

Commitments of US Official Programs


Calendar year 1986 0ODA

Calendar year 1987 ODA

Type of transaction ODA OOF Total

grant element ODA OOF Total

grant element

Total 10753 1961 12714 966 9365 1996 11361 970

Excluding debt reorganization 10702 826 11527 968 9319 807 10125 972

Grants 9746 150 9896 1000 8594 -- 8594 1000 Excluding debt reorganization 9746 150 9896 1000 8594 -- 8594 1000

Loans 1007 1785 2792 639 771 1964 2735 639 Excluding debt reorganization 955 650 1605 638 724 775 1499 639

ODA 1007 sectsectsectsectsectsectsect Excluding debt reorganization 955 sectsectsectsectsectsectsect

OOF 1785

1007 sectsectsectsectsectsectsect 955 sectsectsectsectsectsectsect

1785 sectsectsectsectsectsectsect


sectsectsectsectsectsectsect 1964

771 724

1964

sectsectsectsectsectsectsect sectsectsectsectsectsectsect sectsectsectsectsectsectsect

Excluding debt reorganization 650 650 sectsectsectsectsectsectsect sectsectsectsectsectsectsect 775 775 sectsectsectsectsectsectsect

Equity participation 26 26 sectsectsectsectsectsectsect 32 32 sectsectsectsectsectsectsect

Grants as a percentage of total Excluding debt reorganization

906 911

76 182

778 859

sectsectsectsectsectsectsect sectsectsectsectsectsectsect

918 922

--

--

756 849


1 Includes grant-like transactions and capital subscriptions to multilateral institutions

Source Bureau of Economic Analysis US Department of Commerce

October 31 1988

TABLE 1112

US Official Commitments Average ODA loan terms

Calendar year 1987 Calendar year 1986 Interval Effective

Interval Effective to first interest

to first interest GrantGrantType of loan element Maturity repayment rateelement Maturity repayment rate

(years) (years) - (years) (years)

New ODA (bilateral and multilateral)

FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282

Debt reorganization 655 sectsectsect sect sectsectsectsectsectsectsect5sect sectsectsectsectsectsectsectsectsect 660 sectsectsectsectsectsectsectsect sectsectsectsectsectsect5sectsect sectsectsectsectsectsectsectsect

Total ODA 639 sectsectsectsectsect sectsectsectsectsectsectsect 639 sectsectsectsectsectsect sectsectsectsectsectsect sect

Bureau of Economic Analysis US Department of Commerce

Source

1988October 31

-21-

Table IrI3 US Economic Assistance Gross

a Budget authority in $ millions by US fiscal year

Development Assistance Economic Support Fund Public Law 480 Other bilateral Multilateral institutions Total

FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979

b Budget Authority in percentages by US fiscal year

Development Assistance Economic Support Fund Public Law 480 Other bilateral Multilateral institutions

FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7

Table 1114 US Functional Development Assistance

New Budget Authority millions by US fiscal years

Continuing Actual Resolution Enacted

Agriculture Rural Development and Nutrition Population Health Child Survival Fund AIDS Education and Human Resources Private Sector Environment and Energy Science and Technology DeobligationReobligation

Total

Memo Development Fund for Africa

FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-

IV PUBLIC OPINION AND INFORMATION

The US Agency for International Developments international development communications and public information program

informs and educates concerned audiences in the United States as well as in recipient and donor nations on the policies objectives and activities of the US foreign economic and

humanitarian assistance program

AIDs communication strategy focuses on how the US foreign assistance program promotes the expansion of democratic institutions and practices the development of free market

economics and other economic reforms the strengthening of private sector initiatives the transfer of development

technology and the achievement of long-term sustainable

economic growth throughout the developing world

American audiences are provided specific information on how the investment of US tax dollars in a foreign aid program helps

improve the quality of life of many of the worlds disadvantaged and suffering peoples and stimulates the growth

of developing nations economies as well as broadens the

marketing potential of US commodities and services

In communicating with key foreign contacts and target audiences

abroad it is AIDs intention to provide information on not only country specific mission programs and how those programs

directly support national development goals but also to encourage greater local participation in the process of economic change and growth

Messages designed to convey these points to foreign audiences

are transmitted primarily through the international public communication channels of the US Information Agency (USIA) and its network of overseas US Information Service Offices

(OSIS) Under an agency-to-agency cooperative working agreement in the field of public affairs frequent use is made of USIAs television and satellite-dialogue programs various

topical and geographic publications and press release

materials Also NID continues to stress the development of

closer personalpr3fessional discussions between American aid

officers and their key foreign counterparts and other business

academic and public media opinion leaders

During 1988 AID Washingtons Bureau for External Affairs

advanced its efforts to establish and support a number of

development communications offices within selected overseas

missions A combination of American officers foreign

nationals and contract oersonnel have been trained and

assigned the task of conducting inaividual country development

-23shy

communications programs in conjunction with local USIA Public Affairs Officers In each such case a specific countryshyoriented development communications strategy has been or is in the process of bein written

While general US public understanding of the objectives and scope of development work being conducted by the US foreign assistance program remains more limited than desired media coverage of global news events and a more aggressive AID information program over the past year have promoted a growing public awareness of the importance of foLeign assistance as a key element of US foreign relations and diplomacy For example substantial US public media coverage was given the US food assistance response to the Ethiopian drought and famine crisis the US effort to combat the crop damage resulting from widespread locust infestations in Africa US promotion of free election practices in the Philippines and Central America and refugee feeding in the Sudan This reporting was assisted by AID Washington and overseas mission press materials and briefings

Considerable African media international and US press reporting on AID mission programs in Africa was obtained as a direct result of an AID Washington Bureau of External Affairs pilot Africa Writers project An AID reporter was assigned to cover selected country programs in Africa for a four-and-a-half month period All of the articles written were placed in local African newspapers provided to the USIA wireless file and to the Voice of America for replay to Africa and were re-edited into a special monograph series for distribution to a special American audience list of individuals institutions and media interested in US-Africa affairs Another monograph series on AID long-term projects designed to help the people and the economy of Haiti was prepared and is being disseminated to audiences both in Haiti and the United States AID thus is able to achieve greaterpublic support from both domestic and foreign audiences through appropriate design and editing of a single information product

Toward an AID goal of fostering more accurate and thorough international reporting on development and economic issues in early 1988 a group of journalists representing media in developing countries was invited to attend a special symposium on economic and growth problems in the developing world The session was conducted by the Bureau of External Affairs in collaboration with the American Press Institute in Reston Virginia Speakers represented a wide range of private sector media academic and government experts AID plans to make this an annual event

-24-

The Agency continues to produce a monthly newspaper Front Lines which reaches a targeted mailing list in the Unl-t-ed States and abroad Also AID produces a periodic newsletter Highlights which focuses on specific aspects of the US economic and humanitarian assistance program abroad and is circulated to more than 80000 American business and community leaders in all fifty states

The United States appreciates and enthusiastically supports the recent initiatives of the Nordic countries and the Canadian International Development Agency (CIDA) to improve donor nation cooperation in the field of public information and development communicaLions AID hopes to see greater DAC support and sponsorship of these initiatives to share experiences and program ideas on how to more effectively communicate foreign assistance information to domestic as well as international audiences

-25-

V MULTILATERAL CONTRIBUTIONS

A Multilateral Development Banks (MDBs)

The United States maintains its historically strong support of the multilateral development banks as attested to by the sustained share of multilateral aid at about 20 of total foreign aid throughout the eighties This reflects our continued belief that multilateral assistance has a strong role to play in leveraging substantial resources from donors and capital markets and channeling them to countries willing to undertake economically sound project- and policy-related measures Nevertheless this US budget account like other parts of the budget has been affected by the joint effort of the Administration and Congress to reduce the budget deficit with the effect that payment of some MDB arrearages has had to be postponed

1 World Bank

The United States continues to believe that the World Bank has a special role among the multilateral development banks in providing leadership to the donor community in a number of areas Our participation in negotiations on the General Capital Increase reflected some key US priorities for the Banks special attention These included sustained attention to staffing and operations in the environmental area and strengthened support for the private sector in developing countries The Administration has now received Congressional approval for our subscription to the GCI which will maintain a US share of over 18 of the Banks capital

The United States agreed to proceed with the GCI because it was convinced of the need for new capital to assure that the Bank continues to provide the necessary support for economic growth in the developing countries The GCI will increase the resources available for sound project lending directed t)ward advancing human needs and capital infrastructure in areas such as energy development agriculture and rural development urban development and transportation In addition the GCI will cnable the Bank to continue to be a cornerstone in the current growth-oriented debt strategy by expanding its policy-based lending Such lending encourages policy reforms by debtor governments designed to address their underlying structural problems and to promote the sustained growth necessary to ultimately resolve their debt problems Under the strategy we believe that private banks have a key role to play in making new resources available and in offering a menu of options to facilitate the concerted lending process

-26-

The United States has welcomed th3 Banks active pursuit of strengthened coordination among donors in low-income Africa over the past year an6 is a strong participant in collaborative financing in those countries We expect that the Banks lending and the efforts of other donors will increasingly be informed by Policy Framework Papers and we place very high priority on developing a sound process of early consultation as these documents are being developed The United States also recognizes the difficult debt servicing problems confronting low income heavily-indebted sub-Saharan African countries To support economic reform in these countries we have agreed to changes in the Paris Club to allow creditors to follow a differentiated approach in rescheduling official debt owed by

these countries

The United States also particularly welcomed the creation of the Multilateral Investment Guarantee Agency a major step

forward in enhancing the World Bank Groups support for the

private sector development in its borrower countries

2 Regional Development Banks

The United States also believes that regional development banks have the potential to be strong forces in their own right reflecting a first-hand understanding of the regions in which they operate However it is especially important that they be perceived by borrowing countries as effective development

institutions with a sound analytical capacity In the unsuccessful Inter- American Development Bank negotiations and

in the African Development Fund negotiations concluded in

the United States has placed special emphasis onNovember 1987 operational and management improvements in these institutions

In all the regional banks we believe there is room for greater

effectiveness in the areas of country strategy development and

country programming strengthened policy dialogue and enhanced

coordination with other donors

---

---

---

---

---

-27-

TABLE V1 MULTILATERAL DEVELOPMENT BANKS

FY 1986 - FY 1989

FY 1986 Actual

IBRD Paid-in 105003 Callable (1353220)

IDA 669900

Special Facility for sub-Saharan Africa

IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC

ADB Paid-in Callable

ADF

AfDB Paid-in Callable

AFDF

TOTAL BudgetAuthority

Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-

B Contributions to International Organizations 1985-1987

The funding patterns of US assessed and voluntary contributions to international organizations for the past three fiscal years underscore the US Governments intention to invest resources in those multilateral organizations where the United States has the most potential for influencing program content management and outcome Funding reductions in fiscal years 1986 and 1987 responded to the continuing overriding mandate for program austerity in US Government budget allocations

With respect to United Nations (UN) agencies reductions in fiscal years 1986 and 1987 also reflected enforcement of Section 143 of Public Law 99-93 This legislation limits US assessed contributions to 20 of the total annual budget of the United Nations (UN) and its specialized agencies unless voting rights procedures are adopted that give each member state voting rights proportionate to its contribution Section 143 also mandates withholding funds should the UN or its specialized agencies fail to demonstrate progress in achieving meaningful reform of budget and programming procedures

Total US contributions to international organizations in terms of actual fiscal year (FY) disbursements amounted to $14 billion $12 billion and $11 billion for the fiscal years 1985 through 1987 This represented a 10 decrease from FY 1985 to FY 1986 and a further decrease of 11 from FY 1986 to FY 1987 US assessed centributions totaled $5428 million in FY 1985 $4792 in FY 19S6 and $4223 in FY 1987 US voluntary contributions in fiscal years 1985 1986 and 1987 were $8086 million $7352 million and $6601 million respectively

1 Assessed Contributions

While the level of US assessed contributions declined from FY 1985 to FY 1986 the United Nations share of total contributions increased Of the $4792 million in assessed contributions allocated in FY 1986 the UN and eleven of its specialized agencies received nearly three-fourths as opposed to the two-thirds of the total received by these same organizations in the previous year By comparison eight Inter-American organizations received 1521 of all US assessed contributions in FY 1986 versus 1678 in FY 1985 Five regional organizations including the Organization for Economic Cooperation and Development (OECD) and the North Atlantic Treaty Organization (NATO) received 879 of assessed contributions in FY 1986 as opposed to 55 in FY 1985

In absolute dollar amounts Inter-American Organizations as a

group took the largest cut in FY 1986 Total funding for this

-29shy

category was down from $911 million in FY 1985 to $686 million a 2470 reduction Of individual agencies in this category those experiencing the largest reductions in FY 1986 were the Organization of America States (OAS) the Inter-American Institute for Cooperation on Agriculture (IICA) and the Pan American Health Organization (PAHO) Notwithstanding reductions to these three agencies combined contributions to OAS IICA and PAHO constituted more than 95 of all contributions to Inter-American Organizations in fiscal years 1985 through 1987 By FY 1987 US contributions to Inter-American Organizations were at $898 million a return to approximately the 1985 level

The US contribution to the UN and affiliated agencies was $3305 million in FY 1986 a reduction of $320 million or 904 from the previous year The reduced US contribution to the Food and Agriculture Organization (FAO) accounted in large part for this decrease down $132 million from the near $50 million dollar payment of FY 19851 In dollar terms US contributions to UN and affiliated agencies dropped sharply in FY 1987 down $836 million or 2528 from FY 1986 and down 3203 from FY 1985 Again in FY 1987 the assessed contribution to FAO which received an allocation 3095 less than in FY 1986 was reduced most Also substantially reduced were contributions to the UN which received 3845 less than in FY 1986 the World Meteorological Organization (WMO) down 4034 and the International Labor Organization (ILO) down 2050 Four agencies in this category escaped contribution reductions in FY 1987 Notably contributions to the International Atomic Energy Agency (IAEA) the International Maritime Organization (IMO) the International Telecommunication Union (ITU) and the Universal Postal Union (UPU) increased For IAEA and ITU and UPU FY 1987 marked the second year in which the level of US contributions toward assessments increased

US contributions to regional organizations increased bj $96 million in FY 1986 and by $46 million in FY 1987 Among regional organizations OECD and NATO received the largest US assessed contributions Together they accounted for more than 80 of contributions to regional organizations in fiscal years 1985 through 1987

2 Voluntary Contributions

The bulk of US voluntary contributions went to support economic development and humanitarian assistance The agencies

l The United States withheld its 1986 and 1987 contributions to FAO under PL 99-93 strictures but expects to release these funds as FAO moves toward reform

-30shy

that consistently received the largest share of total US voluntary contributions were CGIAR (the Consultative Group on International Agricultural Research) UNDP (United Nations Development Program) UNICEF (United Nations Childrens Fund) IAEA OAS (for Development Assistance and Special Cultural Funds) WFP (World Food Program) Y2 IFAD (the International Fund for Agricultural Development) UNHCR (the United Nations High Commissioner for Refugees Programs) and UNRWA (United Nations Relief and Works Agency) Contributions to these agencies comprised $6961 million or 8609 of all voluntary contributions in FY 1985 8923 in FY 1986 and 8828 in FY 1987

In fiscal years 1985 and 1986 the largest US contributions (excluding commodities and services) were made to UNDP at $1614 million and $1365 million respectively In FY 1987 UNHCR received the largest contribution (excluding commodities and services) at $1053 million followed by UNDP which was allocated $1040 million The agency receiving the largest overall voluntary contribution was the WFP which received $4588 million or 2082 of voluntary contributions (including commodities and services) for the FY 1985-1987 period

Peacekeeping operation in Cyprus also received US voluntary contributions in fiscal years 1985 1986 and 1987 Total voluntary contributions for peacekeeping were $370 million in FY 1985 $269 million in FY 1986 and $317 million in FY 1987

Along with previously mentioned changes in voluntary contribution patterns it should be noted that some agencies funded prior to FY 1986 were not funded in 1986 and 1987 ie

the UN Fund for Population Activities (UNFPA) and the ON Educational Scientific and Cultural Organization (UNESCO) The UNFPA was not funded in fiscal years 1986-1987 because of US questions concerning its program in China Release in FY 1988 of funds designated for UNFPA in previous years wil depend on whether UNFPAs program in China changes making it eligible for US support

The United States withdrew from UNESCO in 1985 In FY 1986 the United States began to contribute funds to wInternational Convention and Scientific Organizations Contributions (OSOC) to facilitate continued US participation in certain international scientific conventions and activities formerly

2 Total US contributions to WFP included cash from the

International Organizations Program Account of the Foreign Assistance Act plus PL-480 commodities and US Government services

-31shy

accommodated through membership in UNESCO While the United States participates as an observer at UNESCO councils the United States will not resume membership in UNESCO unless progress toward meaningful reform is demonstrated

3 US Role in IFAD

The United States has been a strong supporter of IFAD duringthe last two years In addition to our contribution under IFADs Replenishment II in 1987 we made an extra contribution of $10 million to 1FADs Special Program for Africa Also in 1987 the United States proposed that IFAD establish within its Executive Board a subcommittee on evaluation to guideevaluations of projects and operations and to ensure that the lessons of experience were fed back into the institution After discussion among IFADs staff and Governing Council members this proposal was adopted and the subcommittee held its first meeting in April 1988

US contributions to IFAD have declined during IFADs three fundings This does not indicate a reduced US commitment to IFAD Contributions from almost all of IFADs developed country donors declined from the $1 billion Initial Contribution to the $488 million Second Replenishment Under IFADs funding formula contributions from the United States and other OECD donors have been linked to the contribution of the OPEC category which has declined with the ebbing financial power of OPEC As a sign of its commitment to IFAD during the last two years the United States has worked in the High Level Committee discussions to find a way to make IFADs funding more adequate and dependable

4 Policy Goals

The United States continues to encourage improvements in programming of international organizations resources including more effective planning and coordination proceses(eg UNDP-assisted Roundtables) and promulgation of programstrategies that foster revitalization of private enterprise promotion of outward-looking trade and investment regimesoreater involvement of grassroots organizations and national governments in national development management improvement of human capital and greater technical cooperation among nations

The United States also has played a leading role among the major donors in support of efforts to enhance cooperationcoherence and coodination within the UN development systemparticularly by reinforcing the central funding and coordinating role of UNDP improving the collaboration and division of labor between UNDP and sectoral agencies and

-32shy

increasing the effectiveness of the country programming process as a framework for joint and collaborative programming among UN agencies

Through participation in multilateral assistance programs the United States has helped to enhance those factors -- eg private initiative and institutions that encourage broad-based development policy reform and market-driven development -shythat are prerequisites for ultimate long-term success in sustaining economic development US bilateral objectives of promoting sustained development -- by enhancing the natural resource base and by practicing effective resources management -- are mirrored in the programs of organizations supported by the United States such as UNDP UNEP FAO IICA and the CGIAR US contributions to the child survival efforts of WHO UNICEF PAHO and ULDP foster global interface with its own bilateral efforts to improve health status of children in developing countries through new technologies such as oral rehydration therapy and through improved primary health care delivery systems The United States continues to cooperate through internatonal organizations like UNRWA UNHCR FAOWFP UNDP and UNICEF to respond with emergency and long-term efforts to alleviate the African crisis

The United States sees a role for the international organizations wherein they spearhead policy dialogue coordinate multinational emergency responses and facilitate policy reform critical to economic recovery and development in recipient countries Organizations such as UNDP IFAD and the FAOWFP provide effective mechanisms in this area

Tables V2 amp V3 provide details on US total actual disbursements for budget-wide voluntary contributions to international organizations in fiscal years 1985 through 1987 as well as budget authority for contributions under the International Organizations and Programs account of the Foreign Assistance Act for fiscal years 1987 through 1989

-33-

Table V2 Voluntary Contributions to International Organizations

Disbursements by Fiscal Year ($ thousands)

FY 1985 FY 1986 FY 1987 Actual Actual Estimate

Colombo Plan Drug Adv Program 75 70 100 Colombo Plan Staff College 47

Consultative Group on Intl Agric Research (CGIAR) 45160 46250 40000

UN Development Program (UNDP) 161426 136549 104000 UN Childrens Fund (UNICEF) 52994 51323 50934 Intergovernmental Committee

for Migration (ICM) 6070 6013 6973 Intl Atomic Energy Agency 14961 14287 20308 OAS Development Assist Programs 15100 13742 13150 OAS Special Cultural Fund 400 350 350 UN Environment Program (UNEP) 9846 8586 6800 International Convention

amp Scientific Org Contribution --- 9228 2000 WMO Voluntary Cooperation Program 1946 1715 2000 UN Capital Development Fund (UNCDF) 1988 861 861 UN Educational amp Training Program

for Southern Africa (UNETPSA) 1000 861 789 UN Development Fund

for Women (UNIFEM) 499 239 200 UNIDO Invest Promotion Service 100 --- 150 Convention on International Trade

in Endangered Species (CITES) 196 172 172 UN Voluntary Fund for Victims

of Torture(UNVFVT) 100 86 86 World Food Program (WFP) UN Trust Fund for

116500 192300 150000

South Africa (UNTFSA) 343 --- 250 UN Fellowship Program --- 215 100 UN Institute for Namibia (UNIN)

UN Center on Human Settlement (HABITAT) --- 383 400

Intl Fund for Agricultural Development (IFAD) 90000 28710 28710

UN Fund for Drug Abuse Control 2732 3000 1320 UN High Commissioner for

Refugees Program 123957 105530 105282

-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-

Voluntary Contributions to International Organizations Disbursements by Fiscal Year

($ thousands)

FY 1985 FY 1986 FY 1987

Actual Actual Estimate

UN Relief and Works Agency 75630 67000 70000 150 65 100UN Volunteers

UNDP Trust Fund to Combat Ioverty amp Hunger in Africa --- 1368

Wccld Heritage Fund (WHF) 239 239 200

WHO Special Programs 8829 11253 18484

PAHO Special Fund 2859 5632 4000

West African Rice fevelopment Association 2400 2283 700

100 WlPO Voluntary Programs UN Fund for Population

Activities (UNFPA) 36000

--Subtotal Voluntary 771647 708310 628419

Voluntary Peacekeeping

Multinl ForceObservers 28000 18300 24377 7312UN Force in Cyprus 8989 8613

--Subtotal Peacekeeping 36989 26913 31689

808636 735223 660108TOTAL VOLUNTARY

2203967CUMULATIVE VOLUNTARY 1985 1986 1987

Voluntary as a Percent of 5984 6054 6098Total Contributions Disbursed

Includes commodities and services

Source US Department of State US Co itributions to

International Organizations Report to the Congress and supplementary datafiscal years 1986 and 1987

---

-35-

Table V3 International Organizations amp Programs

(Voluntary Contributions) Budget Authority

($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c

UN Development Program (UNDP) UN Childrens Fund (UNICEF) Internl Atomic

Energy Agency (IAEA) OAS Development Assistance

Programs (OAS) UN Environment Program (UNEP) Internl Convention amp Scientific

Organization Contributions World Meteorological Organization

Voluntary Cooperation Program UN Capital Devel Fund (UNCDF) UN Educational amp Training Program

for Southern Africa (UNETPSA) UN Development Fund

for Women (UNIFEM) UNIDO Invest Promotion Service Convention on International Trade

in Endangered Species (CITES) UN Voluntary Fund for Victims

of Torture(UNVFVT) World Food Program (WFP) UN Trust Fund

for South Africa (UNTFSA) UN Institute for Training and

Research (UNITAR) UN Fellowship Program UN Institute for Namibia(UNIN) UN Center on Human

Settlements (HABITAT) Internl Fund for Agricultural

Development (IFAD) World Heritage Fund (WHF) UNDP Trust Fund to Combat

Poverty amp Hunger in Africa UN Trust Fund for the Intl Research

and Training Institute for the Advancement o4 Women (INSTRAW)

Total

FY 1987 FY 1988 Actual Actual

107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3

a As appropriated in PL 99-500 b As appropriated in PL 100-202 d As appropriated in PL 100-461

Source US International Development Cooperation Agency Congressional Presentation FY 1989 International Organizations and supplementary data

-37-

VI GEOGRAPHICAL DISTRIBUTION

A General Trends

In 1987 the United States extended official development assistance to more than 100 countries and territories As in 1985 and 1986 over 50 of the dollar volume of US ODA was concentrated in three geographic regions the Middle East North Africa and Caribbean and Central America Geographical trends for the calendar years 1984 through 1987 are illustrated in tables VIl and VI2

Calendar year 1985 stands apart both in terms of volume and geographical Cistribution The United States responded strongly to hardship in sub-Saharan Africa the level of response may be gauged by the fact that US net disbursements to Sudan for that year were higher than net disbursements to El Salvador Pakistan or the Philippines Economic Support Fund grant disbursements to Israel and Egypt were also unusually high in 1985 the same level of disbursements to Israel continued into 1986

A comparison of geographical focus between 1984 and 1987 highlights several geographic distribution features of US ODA Countries of special security interest to the United State lead the list of recipients and leading countries tend to remain the same across time Congressional designation of funds (earmarking) underlies much of the stability of US geographical distribution Within these limits the United States is sometimes able to respond to countries which have made heroic efforts in economic reform (Bolivia) Of the major regions listed the Caribbean and Central America enjoyed the largesL increase in ODA disbursements in 1987 as compared with 1984

Looking ahead to 1988 and 1989 the relative levels of assistance among regions are likely to move into closer alignment with those evident in 1984 The anticipated decline irODA is expected to be felt most strongly in flows to Latin America As projected from estimated country program obligations about 40 of the decline in ODA will be absorbed by those Latin American countries which will receive about 25 of bilaterally designated ODA

B Sub-Saharan Africa

Lower overall ODA levels and increased earmarking have limited US funds available to assist the poorest countries in sub-Saharan Africa With the ODA level for the region stabilizing at the $700 million to $800 million level relative allocations within the region will depend in large part on the commitment to economic reform demonstrated by the countries

----------------------------------------------------------

-38shy

themselves Ongoing implementation of the End Hunger Initiative including the increased funding flexibility made possible by the Development Fund for Africa should enable the United States to respond more directly to the needs occasloned by structural adjustment efforts This response will not be limited to ODA As described in Chapter T the End Hunger Initiative calls on all US Government (rencies to promote economic growth in sub-Saharan Africa not just the agencies which disburse ODA The Overseas Private Investment Corporations Africa Growth Fund is an example of US non-ODA cooperation to encourage economic growth This capital fund supported by a $20 million OPIC loan guarantee will provide investment capital and assure quality management for the development of new productive ventures expansion of existing private companies and privatization of state-owned enterprises in a wide range of industries throughout sub-Saharan Africa

Table VIl US Bilateral ODA Net Disbursements

Geographical Distribution by Region 1984-1987 (in $ millions)

1984 1985 1986 1987

Europe 150 120 143 -44

Africa 2233 2860 2170 2024 North of Sahara 1328 1459 1216 1155 South of Sahara 857 1318 882 783 Regional unspecified 48 83 72 87

Latin America 1142 1465 1318 1437 Caribbean and Central 946 1175 103 1211 South 150 218 20b 119 Regional Unspecified 46 72 80 107

Asia 1973 2705 2940 2058 Middle East 1297 2042 2008 388 South Asia 459 454 478 369 Far East 201 180 420 265 Regional Unspecified 16 29 34 37

Oceania 188 165 230 176

Worldwide unspecified 771 867 801 1356

Bilateral total 6457 8182 7602 7007

Memorandum Least Developed Countries 736 1189 868 788

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Table VI2 US Bilateral ODA Net Disbursements Major Recipients by Region 1984-1987

(in $ millions)

1984 1985

Total 6457 Total 8182 of which of which

Europe Turkey 109 Portugal 71

North Africa Egypt 1252 Egypt 1354 S-S Africa Sudan 121 Sudan 346

Camp C America El Salvador 221 El Salvador 287 South America Peru 114 Peru 177

Middle East Israel 1198 Israel 1948 South Asia Bangladesh 206 Bangladesh 165 Far East Philippines 129 Philippines 135

Oceania TTPI 178 TTPI 154

Least Developed Bangladesh 206 Sudan 346

1986 1987


Europe Portugal 85 Cyprus 17


Camp C America El Salvador 272 El Salvador 356 South America Bolivia 103 Bolivia 77

Middle East Israel 1894 Israel 1201 South Asia Pakistan 194 Bangladesh 145 Far East Philippines 367 Philippines 230


Least Developed Sudan 148 Bangladesh 145

Trust Territory of the Pacific Islands and successor entities (excluding the Commonwealth of the Northern Marianas)

-40-

VII AID COORDINATION

In the years since the Marshall Plan the United States has learned a great deal about development assistance however no more meaningful lesson has been learned than how important it is for donors to cooperate with one another and with the recipient countries The effectiveness of donor assistance is increasingly linked with positive interaction among donor programs and the means by which donors and recipients come to understandings and agreements on development priorities is a malor focus of aid coordination The lack of donor-recipient conseaisus on development priorities and the role of development assistance surely diminishes the chances that aid will be used to maximum advantage In its policies and programs the United States actively encourages bilateral and multilateral donors to expand their involvement in and commitment to serious aid coordination

With US support the World Bank (IBRD) nd the International Monetary Fund (IMF) continue to play leading roles in encouraging and supporting economic liberalization stabilization and structural adjustment The introduction by IBRDIMF of Policy Framework Papers (PFPs) into the stabilization and structural adjustment process is beginning to

make visible improvements in the effectiveness of that process The United States continues to use policy dialogue in support of IBRDIMF structural adjustment efforts In

parkicular the United States welcomes the efforts of Development Assistance Committee (DAC) members IBRD IMF and

United Nations Development Program (UNDP) in the following areas

Continuing to work toward improving aid coordination through IBRD-sponsored Consultative Groups (CG) UNDP-sponsored Round Tables (RT) and formal and informal

meetings inside aid-recipient countries

Greater involvement of host governments in preparation of PFPs and a beginning on productive involvement of bilateral

donors in PFP preparations

Improvements in bilateral donors adherence to the provisions of PFPs and Public Investment Programs (PIPs)

Increased support for measures encouraging the expansion of competitive private sectors

Encouragement and increasing leadership provided by the DAC

for policy reform

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Recognition that donors need to do more to help recipient governments strengthen their capacity to plan and manage policy changes programs and projects and that donors also need to do more to harmonize and simplify aid procedures

Recognition of the criticalness of local (in-country) coordination whether at the macroeconomic or sector level and the absolute necessity for a resident entity to assume the lead among donors

In addition to encouraging AI field missions to actively participate in local coordination arrangements the United States is pleased to report an increasing frequency of meetings between the staff of UN agencies headquartered in New York and AID staff These meetings often initiated by the UN system have brought together program and technical personnel of interested agencies and have thus resulted in exceptionally candid exchanges on matters ranging from he technical content of assistance programs to the latest thinking at the levels of policy determination

Bilateral discussions have been held at a senior level between the United States and its DAC counterparts In 1987-88 the AID Administrator met with aid representatives of Japan and the Commission of the European Communities (EC) to explore possibilities for greater bilateral cooperation In addition numerous bilateral discussions with these and other donors were held by the managers and staffs of AIDs regional and technical bureaus

-- In May 1988 AIDs Bureau for Asia and the Near East (ANE) met with Japanese aid officials from the Foreign Ministry Japan Internaticnal Cooperation Agency (JICA) and the Overseas Economic Cooperation Fund (OECF) in Honolulu Hawaii to discuss the management of developmenL assistance This informal and operational meeting sponsored by the East-West Center represents a new and promising area of aid coordination for both the United States and Japan

Over the period 1987-88 Africa Bureau established a fairly regular schedule of senior level bilateral consultations with France Japan Italy Canada EC and others In the field Africa mission directors consult regularly with their donor counterparts both bilaterally and within the context of local donor coordination activities The DAC Principles of Coordination are followed and are discussed annually at the Africa Bureau Mission Directors Conference

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In April 1988 senior officials of the Bureau for Latin America and the Caribbean (LAC) met with two Japanese aid teams prior to the teams visits to Central America and the Caribbean where they met with a number of AID missions

to review US programs and Japanese interests

AIDs extensive network of overseas missions is occasionally asked to supply information on aid coordination activities The results of a fall 1987 survey regarding the IBRDs role and

effectiveness in local (in-country) coordination were shared with the Bank A summer 1988 survey of AID missions concerning Structural Adjustment and Aid Coordination was

conducted in preparation for the October 5 DAC meeting on that subject survey results were shared with the DAC Secretariat

Increasingly AIDs emergency assistance programs are closely coordinated with the major bilateral donors including the United Kingdom France Japan the Netherlands Australia

Italy Switzerland and Germany This is evident in improved

exchange of technical information situation reports on-site search and rescue operations emergency medical programs coordinated aerial spraying of pest infestations in Africa and

decisions on funding plague famine civil strife and

refugeesdisplaced people

Significant efforts to better coordinate through the United Nations Disaster Relief Office (UNDRO) UN Food and

Agricultural Organization (FAO) or other designated UN lead agencies with other donors and multilateral institutions are underway AID frequently encourages UNDRO to take the lead

in coordinating multidonor responses to major disasters and

often recommends the establishment of donor coordination committees in the affected host country AID has recently

irtailed an electronic mail system and new computer software

to facilitate real-time data and information exchange with

UNDRO Geneva private voluntary organizations and other donors

in times of crisis The Office of US Foreign Disaster

Assistance (OFDA) routinely notifies UNDRO of all major actions

and in many instances informs Geneva of pending emergency

assistance decisions

AID also participates in a number of conferences of major

donors in Europe Africa and elsewhere Regularly AID

attends the Locust Control Conference in Rome to ensure

multidonor cooperation and information exchange In all

countries where the United States provides locust control aid

the AID Missions are active participants in host country

donor coordination meetings In addition AID attendeJ the

Emergency Medical Response Conference (Caracas 1988) for

improving coordination of post-disaster medical response for

the Eastern Caribbean AID maintains ongoing technical and

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relief response contacts with the World Bank Inter-American Development Bank the Organization of American States the Pan-American Health Organization and other multilateral institutions in an attempt to sensitize these organizations and regional institutions to the importance of incorporating natural hazards vulnerabilities into the design and implementation of development projects

The United States continues to routinely consult with the FAO through its Global Information and Early Warning System (GIEWS) the World Food Program (WFP)the World Meteorological Organization (WMO) and other UN agencies on current and potential nutritionfood emergency situations in Africa The AID Famine Early Warning System (FEWS) is becoming better integrated into major food aid decisionmaking within the US Government and is frequently used by other donors and host governments to confirm food needs estimates as well as to trigger emergency requests and multilateral donor responses

In the Asia region AID has made significant progress in coordinating and leveraging multilateral and bilateral donor support for major institutions concerned with disaster relief and preparedness The Indonesian Disaster Management Center was jointly funded by AID and the UNDP with participation by UNDRO and the Asian Disaster Preparedness Center (ADPC) The ADPC located at the Asian Institute of Technology (AIT) is designed to bring together other donor and international organizations as well as recipient countries In the Philippines AID has collaborated with the UKs Overseas Development Administration (ODA) the British Council UNDP and UNICEF to help governments better coordinate relief responses Additionally AID has worked or is working with Japan (JICA) the ASEAN countries (through SEASEE) UNESCO the East-West Center the South Pacific Bureau for Economic Cooperation (SPEC) the South Pacific Forum and UNDP to further ensure coordination of emergency relief and preparedness activities

The IBRDs Special Program for African Agricultural Research (SPAAR) developed with AID cooperation provides a collaborative mechanism within which the major bilateral and multilateral donors supporting agricultural research in Africa can find productive areas for development assistance cooperation The Secretariat is located at the World Bank in Washington DC The SPAAR membership meets twice yearly Donors follow their own programs and procedures but with knowledge of the activities of other donors so that better harmonization of assistance can be achieved to the benefit of African development

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In the field of population AID promotes regular information

exchange and coordinates its programs closely with those of the

World Bank United Nations Fund for Population Activities

(UNFPA) and bilateral donors Coordination takes place at the One effectiveinterregional regional and country levels

coordination mechanism is trhe Inter-Agency Coordination

Committee for Censuses in sub-Saharan Africa in which AID

UNFPA and the World Bank review program needs and priorities on

a regular basis to ensure complementary efforts AID and

UNFPA have collaborated in supporting demographic and health

surveys in a number of countries in Africa as well as in other

regions to increase the knowledge base essential for effective

policy and program planning There are also numerous examples

of coordinated and complementary assistance to countries

particularly in sub-Saharan Africa engaged in the process of In responsedeveloping and implementing population policies

to requests for technical comments and advice AID has African Populationprovided input into the World Banks

Strategy for the 1990s and UNFPAs wide-ranging review and the stage for populationassessment exercise designed to set

the next decadeassistance programs over

AID is continuing its forestry cooperation with other donors

and under the Tropical Forestry Action Plan (TFAP) In this

effort seven in-country forestry sector reviews have been

completed and adopted and more than thirty are in various

stages of planning AID has worked with the task force

planning for the second multidonorLDC Bellagio meeting on future mechanisms toforestry this meeting will focus on

Otherstrengthen international tropical forestry research

donors are participating in AID-sponsored efforts in Asia to

establish a multipurpose tree species research network covering Researchers fromboth biological and social science research

ten developing countries are participating

AID is collaborating with the World Bank IDB and other

bilateral and multilateral aid agencies to help improve the

efficiency of the electric power sector both from a technical

and managerial viewpoint Increased private sector

participation in ownership and operation of energy facilities

is being pursued by AID in several developing countries

including Pakistan the Philippines Thailand and Costa Rica

in cooperation with other interested donors

The United States has urged greater donor attention to the AID isenvironmental aspects of development assistance

taking the lead among donor aid agencies in formulating an

energyenvironmental program responding to concerns about

global climate warming and the need for increased energy system

efficiency

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VIII ADAPTING AID POLICIES TO POLICY -EFORM AND STRUCTURAL ADJUSTMENT EFFORTS OF DEVELOPING COUNTRIES

The United States recognizes the overriding importance of appropriate national economic policies It is thus strongly committed to supporting the policy reform and structural adjustment efforts of developing countries This support includes among other things resource transfers to facilitate reforms and the provision of technical assistance to help policymakers identify design and implement appropriate measures As a part of this strategy US representatives maintain an ongoing policy dialogue with host government officials helping them to identify needed changes and appropriate new policies and to provide a policy environment conducive to private enterprise competitive markets and growing participation in international trade Also considered an integral part of this strategy is the encouragement of greater cooperation among donors international economic assistance agencies and aid recipient countries

Resource transfers that take the form of quick disbursing balance-of-payments assistance continue to be the most effective means of encouraging and supporting policy reform Such assistance in the form of cash transfers and commodity import programs have accounted for a substantial proportion of US bilateral assistance in recent years amounting on average to about $33 billion or 43 percent over the FY (fiscal year) 1986-1987 period The Food for Peace program in FY 1987 which essentially serves the same purpose remained very close to the $986 million level for FY 1986 Moreover the African Economic Policy Reform Program first initiated in 1985 continues to be effective In FY 1987 three new country programs in Gambia Tanzania and Cameroon were implemented that total $27 million

A recent new development has been the approval by Congress in the FY 1988 authorization Legislation of the establishment of the Development Fund for Africa (DFA) This special funding mechanism replaces the traditional functional accounts divisions that attach to development assistance resources as well as the Sahel Development Program account While its initial funding of $550 million does not represent program additionality it nevertheess provides at least three important programming advaiiLages that should work to enhance the effectiveness of AIDs support of policy reform 4nd structural adjustment efforts of developing countries First through DFA it is possible to shift resources quickly into countries undertaking appropriate policy reform efforts and in concert with other bilateral donors to coordinate those resources with the broader structural programs of the World Bank Second the ability to use DFA for nonproject assistance

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allows us to develop coherent and unified programs which link

sectoral reform and flexible budgetary resources with

technical assistance and other project activities Third it

enables AID to broaden its activities into sectors with the

greatest potential for economic growth and employment generation

US support for policy reform and structural change involves

many other programs

The PL 480 Title III program is open to IDA-eligible countries that agree to specific actions addressing constraints to equitable development particularly in the

food and agricultural sector To encourage participation

the United States offers assistance commitments of up to

five years allows for offset of loan repayments if the local currencies generated from the sal of the commodities are used for agreed development purposes

The Food for Progress program introduced in 1985 authorizes multiyear agricultural commodity grants to

countries that agree to agricultural policy reforms conducive to market-oriented private sector development

The Caribbean Basin Initiative initiated in 1983 provides extensive duty-free access to US markets and

economic assistance to support policy reforms that promote

freer markets private investment and export diversification and expansion

The Central American Initiative launched in 1984 involves

resource transfers and intense policy dialogue to support

stabilization and structural adjustment programs

US policy dialogue technical assistance conditionality

coordination leadership and resource transfers have been

instrumental or have played a significant role in bringing

about policy changes in a broad range of countries Such

reforms have related to almost every facet of economic policy

both the macroeconomic and microeconomic levels Throughon these undertakings the United States has come to understand the

difficulties of designing and implementing optimal reforms as

well as the considerable political risks often taken by

governments to carry out reforms However the benefits from

economic policy changes particularly the attainment of

internal and external balance conditions necessary for Thus the Unitedsustained growth continue to be very large

States will continue to enhance its agenda of support for

policy reform and structural adjustments including ongoing

efforts to coordinate its supporting activities with those of

other assistance institutions

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IX TECHNICAL COOPERATION

Technical cooperation expenditures accounted for 25 of net bilateral US official development assistance disbursements in 1987 an increase over the 20 of net bilateral ODA attributable to technical cooperation in 1986 and the comparable figure of 18 in 1985 More than 17900 developing country nationals received training in the United States in 1987 women made up 25 of this trainee population

From the beginning technical cooperation has been an integral part of US assistance programs Innovations in US technical cooperation are thus most understandable in the context of the programs of which they foum a part The chapters in this Memorandum covering Women in Development (XV) Non-Governmental Organizations (XVI) and Broader Instruments of Development Cooperation (XVII) discuss specific ways in which the sustainability of technical improvements is being promoted through increased attention to the involvement of women and the private sector

In general terms the US approach to institutional development also reflects a sharper focus on questions of sustainability Support is often concentrated on a small part of a larger organization so that it can carry on a vital task in the face of overall budgetary stringency and serve as an example of efficiency within the organization The United States also encourages privatizaton of organizations or functions carried out by public sector enterprises

Technical cooperation activities in training and management were the subjects for evaluation studies during 1987 and 1988 The Center for Development Information and Evaluation (CDIE) continued evaluating the developmental impact of AIDs participant training efforts With the help of indigenous research organizations CDIE initiated surveys and organizational case studies of returned trainees in Nepil Kenya and Indonesia US trained social scientists in Asia and agricultural analysts in Zaire Another CDIE study of agricultural higher education projects examined the role of AIDs technical cooperation in fostering institutional development and capacity for change During the same period AIDs Bureau for Science and Technology conducted a mid-term evaluation of the Performance Management Project AIDs major centrally funded management training and improvement effort

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X AID MANAGEMENT

A More Flexible Forms of Assistance

As heavy debt service requirements depressed commodity export prices and ongoing natural disasters such as drought and locusts continue their negative impact on developing countries it has become clear that the Agency for International Development (AID) requires increased flexibility in the development assistance that it provides Fast disbursing nonproject assistance with a high impact -- such as cash transfers budget support commodity import programs and sector assistance -- as well as new food assistance mechanisms offer such flexibility and thus constitute increasingly important aspects of AIDs overall assistance program

To the maximum extent practical AID designs nonproject assistance within the context of ongoing policy dialogues with recipient governments and endeavors to link this assistance to mutually agreed upon policy reforms For example Economic Support Fund (ESF) nonproject support helps to cushion the short-term negative effects of economic adjustment programs which may be targeted at such areas as pricing policies reduction of subsidies and tax and tariff reforms In addition AID has been granted the authority to obligate ESF over a two year period as opposed to one year for development assistance funds and this has given AID additional flexibility in its negotiations on policy reform measures and other conditions

For fiscal year 1987 AIDs nonproject assistance totaled approximately $25 billion This represented more than half of AIDs total ESF bilateral aid program concentrated in countries where cash transfers are made for purposes of meeting foreign policy or sectoral security needs and promoting economic stabilization and structural adjustment programs aimed at fostering economic growth The majority of AID recipient countries however still receive traditional project-type assistance Evaluations of cash transfer programs in Costa Rica Jamaica Honduras and the Dominican Republic were recently completed by AIDs Center for Development Information and Evaluation (CDIE) These evaluations examine the effectiveness of conditionality in policy reform measures and macroeconomic performance

Commodity Import Programs (CIPs) constitute a second orm of flexible fast-disbursing nonproject assistance Through CIPs AID makes dollars available to selected countries which are experiencing serious foreign exchange constraints These loans or grants are used to pay for essential commodity imports from the United States CIPs provide balance-of-payments support

and may in some cases be a part of larger multidonor structural adjustment efforts

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CIPs provide financing for a wide variety of basic commodities including agricultural construction and transportation equipment and spare parts fertilizer chemicals fuel raw materials semi-finished products and foodstuffs AID is prevented by law from financing military and police equipment or luxury goods under a CIP agreement

Decisions on CIPs are made in a recipient country among the host government the resident AID directors and the local intermediary banks that use CIP funds When a CIP agreement is entered into the recipient government allocates the funds between public and private sector importers While some categories as noted above are restricted AID Cecs not determine the specific items to be purchased nor docs it select the supplier Transactions are handled directly between suppliers and foreign importers The terms of loans are normally established at or near host country market rates

In FY 1987 AID financed CIP programs totalling $1765 million in Egypt Jordan Liberia Mauritius and Seychelles In addition to the regular CIPs that AID finances there are also a number of so-called special procurement activities which involve procurement under the same rules and regulations as CIPs However these are for a limited duration and their objectives and goals are expressed in more quantitative terms then those for CIPs Usually they are directed at a specific development problem or a sector such as agriculture health energy or education These activities may be funded on a loan or grant basis and are frequently tied to a sector-specific policy dialogue between the United States and the host country However because of their narrower focus they generally have more of a development thrust than CIPs In FY 1987 AID funded approximately $1733 million for these special procurement activities in Egypt Kenya Pakistan Mozambique and Madagascar

In FY 1988 the Administration requested and the US Cgngress approved an additional mechanism by which to provide budgetary flexibility in development assistance -- the all grant Development Fund for Africa (DFA) For programs in Africa the DFA does away with the restrictions inherent in AIDs traditional functional account structure permitting the Agency to make the program more performance-based by shifting resources to countries and programs where results are being achieved in economic policy reform and to integrate nonproject and project assistance in a more coherent program that will foster continued economic growth and equitable development in the region The DFA is AIDs laboratory for testing ideas about how development assistance might be most effectively used in the future

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In addition food assistance provided through the Food for Peace Program (referred to as PL 480) has been made more flexible by recent changes which have broadened the programming possibilities for such assistance through new commodity monetization provisions under Title II of the programs enabling legislation Monetization refers to the selling of PL 480 agricultural commodities to obtain local currency for use in US assistance programs These new programmatic features provide that

-- A minimum of 10 of the aggregate value of nonemergency Title II commodities approved annually for private voluntary organizations (PVOs) cooperatives and the World Food Program must be monetized each fiscal year This represents an increase of 5 over the amount targeted for monetization under previous legislation

Sales proceeds can be used to transport store distribute and otherwise enhance the effectiveness of Title II direct feeding progLams They can also be used to implement income generating community development health nutrition cooperative development agricultural programs and other development activities

Individual Title II programs may be partially or fully monetized Partial commodity monetization is most frequently used to support direct feeding programs while full commodity monetization is used to provide funds for development projects

B Evaluation Procedures

During 1987 and 1988 AIDs Center for Development Information and Evaluation (CDIE) continued efforts to improve the Agencys evaluation program and to ensure fuller availability of useful evaluation findings to project managers and policy decisionmakers During this period CDIE implemented a number of important central evaluation studies provided leadership coordination and methodological guidance to improve the Agencys decentralized evaluation efforts and developed new evaluation applications and synthesis products to better communicate findings to managers and decisionmakers

New program and policy evaluations initiated by CDIE during 1967 and 1988 included

o studies of agricultural higher education in India Mexico Malawi Nigeria Morocco the Dominican Republic Brazil Thailand Ethiopia and Indonesia

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o studies of the impact of macroeconomic policy reforms in Costa Rica Jamaica the Dominican Republic and Honduras (in cooperation with the Latin America and Caribbean (LAC) Bureau)

o studies of health program sustainability in Honduras Guatemala Lesotho the Gambia Tanzania Botswana Senegal Zaire and Ghana

o evaluations of microenterprise development projects in Indonesia Egypt Bangladesh the Dominican Republic Ecuador Paraguay Guatemala Senegal Malawi and Cameroon

o studj-s of the developmental impact of US-sponsored participant training in Nepal Kenya and Indonesia

o a study of youth-oriented riass media family planning efforts in Mexico

o a study of small-farmer perspectives on development in

Northeast Thailand and

o a study of decentralization programs in Peru

During 1987 and 1988 CDIE also continied developing and implementin evaluation leadership coordination and guidanceactivities Throughout CDIE has emphasized the use of more timely and cost effective rapid appraisal approaches that provide more useful information for management decisionmaking One major accomplishment was the publication of a new AID evaluation handbook -- last updated in 1972 -- which outlined the Agencys new evaluation strategy This was supplemented by other CDIE evaluation methods publications providing more detailed information on planning and implementing-improved evaluation systems and a mission-oriented video emphasizing the practical value of evaluation information

Another major CDIE effort during 1987 and 1988 was continued support for Regional Bureau sponsored collaborative evaluation workshops particularly the development of new materials emphasizing program as well as project assessment Regional evaluation workshops were conducted in Costa Rica Ecuador Guatemala Senegal and Kenya as well as country-specific follow-up workshops in Bangladesh Egypt Senegal and Rwanda AIDs Regional Bureaus are now actively pursuing program level evaluation efforts The AsiaNear East (ANE) Bureau for example recently began requiring that each mission develop program performance indicators -- and report progress annually -- for major elements in their portfolio Similarly the LAC Pureau has initiated a number of multicountry crosscuttingstudies including evaluations of health care financing and

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nontraditionai agricultural exports The Africa Bureau has also begun implementing a new evaluation plan aimed at improving program and sector monitoring and reporting -shyincluding indicators for tracking progress -- in connection with the new Development Fund for Africa

In early 1988 DIE sponsored a multidonor conference on methodologies for measuring program performance particularlywith regard to impacts on rural incomes food availability and consumption and the agricultural resource base A follow-upworkshop was conducted in June 1988 for AID staff During1987 and 1988 CDIE also provided technical assistance on data collection and evaluation methods to a number of AID field missions and published guidance papers on rapid appraisal and group interview techniques and related evaluation methods topics

CDIE also continued developing new evaluation applicationsduring 1987 and 1988 aimed at communicating evaluation findings in a more useful form for program and projectdecisionmakers These applications included numerous abstracts cables and memoranda highlighting key findings and issues from longer evaluation studies managers references summarizing policy design implementation And evaluation issues for small farmer credit and agroforestry projects and evaluation syntheses analyzing available documentary and statistical information on selected topics including rural development farming systems research and axtensiondevelopment finance institutions microenterprise developmenturbanization and environmental issues

During the past year CDIE continued assisting the largerinternational development evaluation community particularlythe DAC Expert Group on Evaluation The CDIE Director served as Chair of the Expert Group and CDIE staff helped prepareseveral papers for the DAC on program sustainabiitynonproject assistance technical cooperation and other subjects CDIE also worked closely with the World Bank in implementing an international donor seminar on rural development programs

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XI ASSOCIATED FINANCING AND RELATED ASPECTS

A US Position on Associated Financing

The United States regards low concessional associated financing and tied and partially untied credits especially when commercially motivated or provided without thorough developmental analysis as potentially harmful both to international trade and to the development process Through support of the DAC Guiding Principles on Associated Financing and the International Arrangement on Export Credits the United States joins with other donors in working toward the greatest possible decrase in these practices The US facilities for offering associated financingmixed credits are used to encourage compliance with these two international understandings

B The Tied Aid Credit Program

The Tied Aid Credit Program (TACP) was organized in 1984 under the authority of the Trade and Development Enhancement Act of 1983 The program uses Economic Support Funds (ESF) and is intended to be financed primarily from commodity import program grants under the ESF Funds from this program can be combined with those uf the Export-Import Bank or of private entities to provide financing that is as concessional as foreign financing being offered by a foreign competitor for a US export sale All transactions finaiced under TACP must contribute to the advancement of the development objectives of the importing country and meet the criteria used to establish country allocations under the ESF

The only use of TACP authorities took place in 1986 in US fiscal years 1988 and 1989 funding for the program was limited to a total of not to exceed $5 million unless the President were to determine that it was in the naticnal interest to provide more

The AID Administrator originally had the responsibility for the TACP Congress further specified in both the 1988 and the 1989 funding legislation that no ESF funds could be used to finance tied aid credits without prior approval from the AID Administrator The Omnibus Trade and Competitiveness Act of 1988 signed by the President on August 23 1988 transferred programmatic authority for the TACP to the Trade and Development Program which is to administer the program in concurrence with the Secretary of State who in turn exercises his authority over the TACP in cooperation with the AID

Administrator

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C The War Chest

Negotiations leading to the Arrangement on Export Credits andi subsequently enforcement of the Arrangement have been major objectives of US mixed credits policy The War Chestconsisting of grant funding available to the Export-Import Bank was created to advance those objectives While the Arrangement was under negotiation War Chest funds made possible aggressive offers of mixed credit financing in the export markets of those countries seen as impeding the negotiations Since the Arrangement has been in place the United States has used the War Chest to ensure that the Arrangement is being effectively implemented War Chest funding was used in instances where

Foreign competitors have grandfathered offers with lower levels of concessionality than normallypermitted under the Arrangement

There have been flagrant violations of notification procedures

Offers of aid are made at the last minute in transactions that have been proceeding on a commercial basis

The War Chest received $100 million for fiscal year 1987 $110 million for f-iscal year 1988 and another $110 million for fiscal year 1989 Successful fiscal year 1987 offers utilized $78 million in War Chest funds in connection with exportsvalued at $2315 million and affected exports to Thailand India Brazil and Gabon

At present the United States does not include War Chest grantsin official development assistance War Chest transactions are not evaluated for developmental soundness they are commercially motivated transactions undertaken in order to enforce the provisions of the Arrangement

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XII PROCUREMENT POLICIES AND PRACTICES

In 1988 legislation was passed allowing AID to waive in the case of sub-Saharan Africa only some of the complex source rules governing procurement of goods and services financed by the new Development Fund for Africa It has long been recognized that existing procedures governing source of commodities including the origin componentry nationality and other rules can cause undue delay in project implementation To ease the management burden arising from strict implementation of the standard procurement regulations AID Missions now have the authority to waive many of the tying requirements which have long governed US procurement At the same time this new policy requires that AID managers use the authority with discretion and maximize to the extent practicable US purchases

AID undertakes a substantial portion of its procurement especially for professional and technical seLvices through contracts entered into by AID itself (on behalf of the recipient government) and the service organization AID has been examining its procedures to be sure that such services even if short-term in nature are procured on the basis of full and open competition

More typically for the procurement of equipment and materials or for the procurement of construction services AID acts as financier of the contract between the foreign purchaser or owner and the supplier or contractor usually in the United States In Lhis context AID has been reviewing in individual cases and generally its responsibilities to approve contract awards and assist in the resolution ot disputes arising during contract performance

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XIII SECTORAL ORIENTATION OF AID

A Aid for Agriculture Rural Development and Food Security

1 Agriculture Rural Development and Nutrition

The Agency for International Developments agriculture rural development and nutrition program (ARDN) is designed to increase the incomes of the poor majority and to expand the availability and consumption of food while maintaining and enhancing the natural resource base In fiscal year 1989 AID will allocate about 41 of the functional development assistance program to support activities in this area

Resource allocations for FY 1987-89 are indicated by region in the following table

Table XIIIl

ARDN Resource Allocations FY 1987-89 by Region

FY 1987 FY 1988 FY 1989

Region Actual Est Planned

AsiaNear East $2261 $1922 $1862 Latin AmericaCaribbean 1762 15J2 1532 Africa 1440 a a Central Bureaus 1406 1453 1543

$434TTotal $

a In FY 1988 and FY 1989 agriculture rural development and nutrition activities (as well as those in the areas of education health family planning etc) will be supported under the Development Fund for Africa (estimated at $550 million in FY 1988 and at $550 million in FY 1989)

AIDs emphasis on sustainable rural economic growth requires policies that are conducive to agkicultural productivity economic growth and employment generation The United States emphasizes policy reform measures in the agricultural sector when these are needed and provides assistance to strengthen the institutional capability of recipient countries to undertake their own policy analysis Oftentimes pricing and marketing reforms are needed to encourage more efficient production and marketing of agricultural inputs and outputs

In the context of this income-oriented strategy AID supports agricultural systems that are productive sustainable and environmentally sound Programs and farming systems that help to conserve the natural resource base protect the environment and preserve genetic diversity help to maintain the long-term capacity of nations and small farms to produce food and other agricultural products

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AID also encourages the development and strengthening of international and national agricultural research systems AID-supported research focuses on particular food crops and on adaptive on-farm trials of new crops and new cultivation practices including agroforestry systems that promise farmers higher and more stable food crop yields and conserve soil and water resources AID is also directing resources to animal diseases and nutrition in order to improve production incomes and diets of farmers who depend on livestock for a living

2 Food Aid Policies

Most US food aid continues to be provided under Public Law 83-480 (PL 480) The major programs mandated by this act are as follows

-- Title I provides credits repayable in dollars for the purchase of US agricultural commodities by friendly countries Recipient countries must undertake measures to increase food production and improve storage and distribution At least 75 of Title I food aid must be allocated to IDA-eligible countries

Title II provides food donations principally for humanitarian purposes such as emergencydisaster relief and programs to help needy people The food is normallychannelled through private voluntary organizations (PVOs) or the World Food Program (WFP) although sometimes it is sold in the marketplace As with Title I recipient countries must assure that there is adequate storage and that the food aid will not have a substantial disincentive on domestic production

Title III Food for Development programs which are financed under Title I are multiyear programs which offer the prospect of loan repayment offset to countries undertaking additional development activities often including implementation of policy reform measures and using the commodities or the local currencies generated by their sale for developmental purposes

US policy continues to encourage the integration of food aid with other instruments of foreign economic assistance to enhance the overall impact of the assistance

The following table disaggregates the US PL 480 food aid program by Title for FY 1987-89

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Table XIII2 PL 480 Food Aid Program Levels FY 1987-89

FY 1987 FY 1988 FY 1989 Actual Est Planned

Title IIII Program $ 9107 $ 8520 $ 8519 Title II Program 5523 5850 6300

Total PL 480 Program $14630 $14370 $14810

B Aid for Energy

The current AID energy program focuses on three primary areas--expansion and efficiency improvements in electricity systems with growing focus on the role of the private sector energy conservation and increasing supplies of energy for

rural uses Activities financed are designed to meet the most critical energy problems now facing developing countries ie the power crisis and the rising cost and increasingly limited supplies of fuels for domestic use The program has evolved over the past few years in response to several factors the changing energy situation in developing countries a growing understanding of the role donor assistance can play in effectively stimulating policy reform and encouraging private sector invescments in energy the results of evaluations of past project activities and efforts to capitalize on the unique technical and scientific skills available from the US

energy industry

During recent years total agency energy funding has fallen

In FY 1987 funding for energy activities totalled $220 million as compared to about $270 million in FY 1986 Funding for

projects which increase supplies of fuelwood and other biomass sources of energy has remained stable while funding for most

other energy activities rs diminished

1 Electric power

AID is carrying out a series of activities to help

developing countries meet their rapidly expanding need for

electric power These activities include support for rural

electrification the provision of assistance to develop

appropriate policies and the technical capability to institute

private power supply programs including decentralized power

generation expansion of generating facilities and assistance

to improve the operation and financial effectiveness of

existing power facilities

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2 Energy Conservation

Since 1980 AID has been actively involved in providing energy conservation services to developing countries While initial efforts focused largely on the provision of energy audit services for energy-intensive industries the program has shifted to emphasizing more efficient electric utility operation and using private sector approaches to implement energy saving techniques

3 Fuelwood and the Provision of Energy for Rural Areas

Since the mid-1970s AID has supported programs designed to increase the availability of wood fuels and other bioenergy resources as well as to increase the efficiency of energy used in rural areas Recent efforts to expand fuelwood supplies reflect the importance of understanding the social and economic factors which influence decisions by individuals and communities to plant and tend trees Current programs emphasize developing and planting tree species most suitable for fuelwood as well as for food fodder and commercially valuable fruit In general there is now less emphasis on community woodlots or large scale fuelwood plantations Instead AIDs programs promote social forestry and agroforestry The agroforestry programs not only increase supplies of tree products but also protect and sustain soil productivity and increase crop and livestock production A recent assessment of agroforestry programs by the Center for Development Information and Evaluation (CDIE) raises key issues and lessons to help guide project managers AID is also working in selected countries on the development production and marketing of more efficient cookstoves and on the use of biomass and other substitute fuels for rural energy needs

4 Energy and the Environment

Because the development and use of energy can create srious environmental problems AID is focusing more of its energy program on efforts to increase energy efficiency to expand the use of fossil fuels such as natural gas and to use cleaner combustion technologies for other fossil fuels and to stress the adoption of renewable forms of energy where appropriate

C Aid for Health and Population

1 Health

In the health sector AID continues to focus on primary health care a trend that began in the mid-1970s The proportion of health aid devoted to primary health care has continued to increase over the last decade In recent years

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the focus on primary care has been further targeted to specific a dramatic effect on child survivalinterventions which have

AIDs Child Survival Strategy puts primary emphasis on oral

rehydration therapy (ORT) and immunizations the Otwin engines

its program Other important child survival interventions9f supported by AID include nutrition and birth spacing Where

country-specific needs dictate program elements such as

presumptive treatment of malaria and control of acute

respiratory disease are supported by AID Overall more than

60 of AIDs health assistance was devoted to child survival

services and research in 1987 and the balance devoted to other

health services and research water and sanitation vector

control and institution building projects

AID has found general receptivity to the increased emphasis

selective primary health care among recipient countries Inon the process of programming AID resources emphasis has been

placed on institutionalization and financial sustainability of

these programs Recent CDIE studies of health program onsustainability highlight factors that have impinged

sustainability in the past and provide lessons for more

sustainable approaches The importance of child survival

activities and the need to institutionalize these efforts are a

part of AIDs policy dialogue with host governments In all

new child survival initiatives careful analysis and planning

for recurrent costs is incorporated in the project design

Although one-time mobilization campaians may be critical to

create public awareness and stimulate a demand for these services AID assistance is most often devoted to

strengthening of the indigenous capacity to manage and deliver

such services thereby ensuring that new generations of

children will receive similar care

Other important aspects of AIDs assistance for child

survival include maximum use of the private sector and private

voluntary organizations close collaboration with other donors

and attention to the need for modern marketing and

communication techniques to increase effective demand for

services

2 Population

Program Issues A1 A variety of activities from its

population account 1 1- lost assistance was directed to

the delivery of family planning services (48 of the total

budget) followed by contraceptives and supplies (15) and

service support activities such as training and information and

biomedical and operations research (10)education (12) and population data collection (5)policy development (9)

Africa is a priority area for AID population assistance In of AIDs population1987 approximately $69 million (30)

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account funded activities in Africa up from $62 million the year before Thirty-five percent went to activities in the AsiaNear East region 38 to Latin America and 11 to worldwide activities

Historically nongovernmental organizations (NGOs) have played a central role in AIDs population program Indeed they have been the principal source of family planning services providea by AID especially outside the Asia region The Agency considers its strong support to NGOs as a way to complement and supplement government programs and not as a replacement for a strong governmental commitment to family planning

Newer AID programs have also focused on the role of the for-profit sector in providing family planning for developing country couples through contraceptive marketing employer-provided family planning and family planning business ventures

Policy Issues The United States reaffirmed its strong support for voluntary family planning and its equally strong opposition to abortion in 1984 at the World Population Conference in Mexico City The United States announced that it would no longer support foreign NGOs that perform and actively promote abortions as a method of family planning

In 1985 Congress enacted legislation that prohibited funding for organizations that support or participate in the management of a program of coercive abortion or involuntary sterilization AID has not contributed to UNFPA since 1985 due to UNFPAs support to the Chinese population program which includes some coercive features In 1989 AID intends to reserve funds in the budget for UNFPA to be used in the event that UNFPAs program in China or the China program itself changes and the organization is again eligible for US funding

3 Acquired Immune Deficiency Syndrome (AIDS)

The AIDS pandemic has recently emerged as the most critical international public health issue of the century The World Health Organization (WHO) has taken the lead in developing and coordinating AIDS programs in developing countries through its Global Programme for AIDS (GPA) AIDs response to the problem har included initial funding of the WHOGPA in FY 1986 at a level f $1 million (plus $1 million to the WHO Africa Regional Office AFRO) and development of a $17 million program in FY 1987 including a $5 million extra-budgetary contribution to WHO In FY 1988 it is anticipated that the AID response will exceed $30 million including a $15 million contribution to the WHOGPA

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Since there is currently no known cure nor vaccination for AIDS treatment or prevention AIDs support to the WHOGPA and to the WHOGPA national programs in AID-recipient countries focuses on training and technical assistance in preventive education provision cf equipment and supplies and epidemiological behavioral and operations research

D Aid for Education and Human Resources

AIDs Education and Human Resources (EHR) programs support a broad range of education and training objectives Human resources development components support training in the United States and locally to improve public and private sector leadership and to strengthen key institutions relevant to development The priority for the education sector programs is strengthening the basic primary and secondary school systems

AID EHR assistance objectives are to improve

-- basic schooling opportunities for children 6-14 particularly for girls and children in poor and rural areas through more efficient allocation and use of resources To improve resource utilization it is necessary to strengthen local administrative and financing capacities and to involve communities and parents more directly in administration of local schools particular attention should be given to strengthening analytic planning and management capacities of those involved in educational delivery

-- skills training for adolescents and adults with particular attention to training for self-employment and employment in small and medium enterprises Employers should be involved as fully as possible in developing and financing training systems from pre-service training institutions to in-service on-the-job and extension training programs

-- scientific technical administrative and managerial training as needed in support of AID programs in each sector Participant training in the United States is an essential part of AID strategies to strengthen private and public sector institutions including universities and other teaching institutions to improve leadership in all sectors and to effect technology transfer

AID strategy emphasizes helping countries mobilize allocate and utilize their own education and training resources more effectively AID education sector programs emphasize analysis of policy choices strengthening analytic management and logistic capacities production and distribution

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systems for basic instructional materials such as textbooks and design and application of educational media and training technology In addition external training for key faculty administrators and technicians is central to strategies for strengthening education and training institutions

In most cases AID capital assistance for construction or financing for equipment and commodities is limited to components required to implement technical assistance projects pilot projects and experimentation preliminary to larger scale replication or application AID works closely with other donors to ensure that AID support for sector assessments as well as other aspects of country programs is coordinated fully with the programs of other donors assisting education

AID emphasizes a) detailed assessment of education and training system capacities and weaknesses as the first stage of program planning b) policy dialogue to encourage both the allocation of resources as needed for education and training and attention to the efficient and equitable allocation of resources c) long-term program strategies to strengthen key institutions and capacities including analytic and management capacities and d) technical assistance as needed to help countries implement changes in management instructional technology instructional materials production and distribution and other systems improvements as they are identified

AID continues to support the development of new technologies and innovative approaches building on its experience with nonformal education and skills training in Ecuador and Lesotho the use of radio and other media to improve rural instruction in Guatemala Nepal Kenya and the Dominican Republiccomputer instruction in Tunisia and childrens television programming in the Near East For over a decade AID has been a major catalyst encouraging the use of satellite telecommunications to link universities and research institutions in Indonesia and in the Caribbean to reduce rural isolation in Peru and to support university extension programs in the South Pacific

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XIV AID AND THE ENVIRONMENT

A Environmental Regulations

The Agency for International Development (AID) has made no changes in its formal environmental regulations as a direct result of the OECD Council Resolutions Unlike many of the other donors the United States has required that environmental assessments such as those recommended by the OECD Council be conducted for its development activities since the mid-1970s AIDs original environmental procedures 22 CFR Part 216 commonly referred to as Regulation 16 were adopted in 1976 and revised in 1980

These regulations require that all projects undergo an Initial Environmental Examination (IEE) during the project identification phase A negative determination in the IEE means that no significant environmental consequences are expected to result from the project activities A positive determination indicates that significant environmental

consequences can be reasonably expected and therefore either an Environmental Assessment (EA) or an Environmental Impact Statement (EIS) must be conducted EAs and EISs are similar except that EISs must be done when the effected environment is in the United States in the global environment or areas outside the jurisdiction of any nation Except in these cases if the Initial Environmental Examination results in a positive

determination an EA is done

Some assistance projects are categorically excluded from an

environmental review This is determined in the IEE and verified by the appropriate chief environmental officer in Washington Such projects include research training extension and institution building projects as well as contributions to multidonor projects when AID is a minor donor The IEEs in these cases simply state that the project is excluded from further environmental review

On the other hand certain categories of activities bypass the

IEE and always require an Environmental Assessment (the project automatically triggers a positive determination) These activities include programs of river basin development

irrigation or water management projects land development resettlement penetration roads power plants potable water or sewerage projects and all projects involving the procurement or use of pesticides

Again if projects are not categorically excluded or automatically subject to an EA or EIA then the Initial Environmental Examination determines if an EA or EIA is required

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AIDs project portfolio has changed significantly since the environmental regulations were developed Currently only a small proportion cf AIDs assistance activities require a detailed environmental assessment The agency funds only a few capital projects focusing a large portion of its funding on research technical assistance and training activities which genetally do not require formal environmental assessments For example in the Latin America and Caribbean Bureau initial environmental examinations were conducted for 37 projects in 1987 Only six of these projects required fcrmal environmental assessments In the AsiaNear East bureau about five full scale environmental assessments have been conducted annually during recent years

While no specific changes have been made in AIDs formal regulations since the passage of the OECD Council resolutions a number of actions have been undertaken by AID to assess the adequacy of its procedures and to develop additional guidance for its field staff to assure the environmental soundness of AID activities For example the Center for Development Information and Evaluation prepared a paperreviewing AIDs experience in conducting environmental assessments Some of the major conclusions of this report follow

The systems strength is that it prescribes a set of procedures which forces designers to identify and if necessary address significant environmental issues in a projects design Funds can be delayed or withheld if environmental issues are not adequately addressed by project designeri

However the system has its limitations It is less effective in screening activities of intermediate credit institutions established (or funded) with AID assistance It also cannot guarantee that mitigation measures or environmental safety standards introducd under inAID project will be sustained or will have a wide impact Finally except for projects for which environmental assessments are required the system does not provide guidance on how to detect and address unforeseen negative environmental effects that might occ-ur in other projects

These shortcomings indicated that the AID system can only deliver what it was designed to do ensuring that significant environmental consequences of development activities funded by AID are identified and considered before they are implemented

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In March 1988 a report was submitted by AID to the US Congress reviewing the adequacy of the Agencys environmental procedures to assure that prcject activities do not inadvertently harm wildlife species or their critical habitat It concluded that the present regulations were adequate to the task but that in many AID-assisted ccuntries information about local biological resources is limited The special analyses on biological diversity and tropical forests now being prepared by AID field staff as part of their Country Development Strategy Statements (CDSSs) should help in identifying specific information needs the kinds of developing country institutions involved in biological diversity conservation and other critical issues

AID staff have also initiated efforts to design procedures for assuring the environmental soundness of activities funded by AID countries with local currency generated by AID assistance While the Agencys formal environmental procedures do not apply to such activities there is a concern that some of these activities could have adverse environmental effects Consequently AID began to formulate procedures needed to mitigate or prevent such effects Draft procedures were sent to AID field missions in early 1988 and should be finalized in late 1988 or early 1989

AID staff are also developing a set of guidelines on pest management to help AID project and contract personnel develop and implement more effective economical and safe crop pest management programs as part of their agricultural development and production activities and to provide guidance on conducting the necessary environmental reviews required for projects involving the use of pesticides

B New AID Policy Paper on Environment and Natural Resources

In addition to actions directly related to environmental assessments in April of 1988 AID issued a Policy Pager on Environment and Natural Resources This paper describes the environmental problems faced by AID-assisted countries the importance of reliable and sustained supplies of natural resources for broad-based economic growth and approaches AID will take to assist developing countries to conserve and protect their environments and manage their exploited resources for sustainable yields Basically AID will

1) encourage and assist developing countries through bilateral and multilateral policy dialogue to formulate national policies and regulations which a) lead to effective management of natural resources b) discourage environmentally harmful activities c) encourage

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environmentally beneficial price and market reform for keycommodities and resources d) stimulate private investment in and local management approaches to natural resources conservation protection and restoration

2) assist developing countries in identifying and solvingtheir environmental and natural resources problems byproviding technical assistance and helping them strengthen public and private institutional capacities scientific capabilities and local skills in resource management

3) support activities specifically designed to achieve sustained natural resource productivity and management while protecting or enhancing the environment

4) ensure that environmental review is fully integrated into all AID-supported development assistance projects

5) encourage other national efforts and donor projectswhich are environmentally sound and which have a positive environmental influence discourage projects which are environmentally unsound and collaborate with bilateral and multilateral donors to evolve consistent policies and complementary programs

6) support systematic planning and improvements in the efficiency of energy production and use and the application of technologies to reduce environmental impacts associated with energy systems and

7) support basic and applied research and the transfer of existing scientific and technological knowledge that promotes environmentally sound economic development

AIDs assistance will continue to focus on three broad environmental program areas sustainable production maintaining natural ecosystems and meeting human needs byimproving environmental quality Within these program areas AID will support forestry (including natural forest management reforestation agroforestry and multi-purpose tree and agroforestry research) soil conservation and watershed management resource inventories environmental planning and education land use planning rangeland management water and wastewater treatment systems increased energy efficiency the use of alternatives to fossil fuels improved industrial and urban pollution control and coastal resources managementEfforts to protect tropical forests and preserve biological diversity will be emphasized The strategic focus and program mix will vary from country to country based on local conditions needs and areas of greatest opportunity

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In FY 1987 AID obligated over $450 million to environmental activities (including ESF support for wastewater treatment systems) in all countries to which we provide assistance During the period FY 1985 to 1988 AIDs cumulative assistance for environmental activities was more than $15 billion including ESF support

C Environmental Review of Projects Funded by Multilateral Development Banks

Beginning in 1986 the US Congress passed legislation designed to encourage the multilateral development banks (MDBs) to implement policies and procedures for the protection of the environrnnt and indigenous peoples Consistent with this legislation AID and other US Government agencies have established an interagency group to review banL projects for environmental impacts and to coordinate US efforts dealing with environmental concerns raised by bank activities AID has also implemented an Early Warning System for bank loans identifying projects with potential environmental problems well in advance of board approval and seeking changes if possible in project design A list of projects so identified is made public every six months Information on bank projects is also shared with other donors in an effort to encourage other countries to actively work with the banks to assure the environmental soundness of their projects

D New Conservation of Biological Diversity Project

A new Conservation of Biological Diversity project was initiated in the Bureau for Science and Technology during 1988 The project is being implemented through the World Wildlife Fund (US) with participation from the Nature Conservancy and the International Institute for Environment and Development (IIED) World Wildlife Fund will utilize the expertise of museums botanical gardens zoos US and international environmental organizations and universiies to provide technical assistance applied research training and pilot field projects with local AID Mission funds to advance biological diversity conservation objectives

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XV WOMEN IN DEVELOPMENT

The Women in Development (WID) program continues its activities to conform to the Congressional mandate to ensure that Third World women are participants in and beneficiaries of all the Agencys development assistance activities The Agency for International Developments 1982 Policy on Women in Development delineates succinctly the Agencys responsibilities for integrating gender issues into AIDs programs and project processes Through its field missions and its central and regional bureaus AID continues to emphasize the role of developing country women in the following WID efforts agricultural development income generating projects in the private sector technology transfer education and training in both the formal and non-formal sectors as well as increased participation of women in participant training sponsored by AID Missions

A Implementation of WID Policies

Examples of the Agencys activities demonstrate progress toward systematic consideration of WID issues especially those defined by the policy paper

- At the request of Che Administrator all Agency central and regional bureaus have developed specific Actioa Plans establishing procedures and systems for ensuring that WID issues are considered carefully throughout the Agencys program and project cycles For example the Africa Bureau (AFR) recently instructed all its missions that their FY 88-91 Action Plans must incorporate appropriate language about gender This effort fulfills one aspect of the Agency manCate and an element in the AFRWID Working Groups Action Plan which focuses on bureau sensitization and staff training program development research monitoring and evaluation and project initiatives

- Refinement of a microcomputer simulation model to demonstrate the economic impact that effective participation of women and girls can have in different sectors is still ongoing Models for gender resource analysis have been developed for Pakistan and Jordan and work is nearing completion in Lesotho and Senegal The programs are tailored to each country situation focusing on agriculture small and microenterprise education and watersanitationhealth The grand project objective is to institutionalize the process of gender-relevant analysis to maximize the efficiency of development planning

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B Programs to Reflect Distinct Roles and Functions of Women

Various activities are underway to ensure that womens myriad

roles in economic development are taken into account AIDs

strategic plan for the integration of WID focuses on the

following

1 Workplan

During FY 1989 thie Office of Women in Development will

undertake activities designed to develop AIDs capacity to

improve project and program effectiveness through appropriate

consideration of the economic roles and productive capacity of

women These activities include research and analysis

technical assistance training and information dissemination

and communication They will focus on the following areas of

emphasis womens productive roles employment patterns and

participation in labor markets economic policy reform and

adjustment and human capital development and social services

2 Activities

Research and Analysis The objective is to collect primary and

secondary data to establish and maintain a state-of-the-art Work will includeinformation base and analysis capability

analysis of existing information identification of data gaps

and promotion of original research Research products will

support technical assistance training and information

dissemination and communication

to provide substantiveTechnical Assistance The objective is

assistance to field missions and AIDWashirigton (AIDW)

in the design implementation and evaluation of projects and

programs Work includes the development of mission WID

strategies portfolio reviews and major programming documents

such as the Country Development Strategy Statement and Action

Plan Results of specific assistance activities will u~pdate

the Agencys information base

Training The objective is to promote awareness uf

information about and skills for addressing gender issues for

and contract teams in theAID management technical staff

design implementation and evaluation of projects and

training of key projectprograms Training includes officers mission-specific training AIDW Bureau

orientation sessions training of contract teams and those with

WID-related responsibilities and training of trainers

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Information Dissemination The objective is to communicate the results of research and analysis technical assistance and training to all AID staff the international donor community and host country organizations Communication links will be developed to allow feedback and lessons learned to update the Agencys information base

C Relations Between Activities

A strong program of research information-gathering and technical assistance will result in a continually updated information base which will be used to modify the content of training programs and the information strategy Training will also be important in updating the information base and in preparing technical assistance efforts Information dissemination and communication will play a central clearinghouse role where packaging of experiences and original discovery can occur and There response to activities undertaken can be evaluated

4 Areas of Emphasis

ProductionEmploymentLabor Research and analysis technical assistance training and information dissemination actions will focus on womens productive roles employment patterns and participation in formal and informal labor markets The establishment and appropriate use of a solid empirical data base on womens economic roles in developing economies is prerequisite to the design of economically effective projects and programs

Economic Policy Reform and Adjustment This area will focus on the linkages between economic policy reform and womens economic roles productive capacity anu production response Emphasis will be on incentives to female producers in all sectors and on the socio-economic benefits and costs of alternative policies The creation of a sound data ba3e will permit the updating of technical assistance training and information dissemination activities

Human Capital DevelopmentSocial Services Focus of this area is on the linkages between womens productive capacity and the development or maintenance of human capital--their own and that of their children This will require data gathering in the key areas of household division of labor and decision-making education health and nutrition fertility and the provision of basic social services Elucidation of these linkages are important in evaluating potential socio-economic benefits and costs of alternative economic reforms

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C Actions to Promote WID Concerns in NGOs and Multilateral Organizations

AID continues its efforts to ensure that gender issues are incorporated in US positions in multilateral organizations and in the activities of private voluntary organizations

- The Office of Women in Development is collaborating with the Peace Corps and CARE to train women in recordkeeping and tree nursery management in Caneroon This pilot activity part of AIDs Cameroons Village Agroforestry Project addresses unforeseen andor evolving needs of women in existing AID and Peace Corps projects A similar WID pilot project is underway in Guatemala with CARE as part of AIDs Guatemalas Family Fish Pond Development Project

D Measures to Support WID Research

AID considers it vital to add to the body of knowledge and data on womens roles in development The following are among recent endeavors

- The Office of Women in Development collects and disseminates information and data on womens roles in developing countries communicating with AID personnel both in Washington and overseas The Office provides funds for research efforts designed to provide information about womens roles in the developing world and for pilot

projects which eventually can be replicated in major Agency programs

- Data continues to be collected in the field by a variety of technical assistants who conduct research regarding gender issues in connection with various projects being implemented around the worJd This research is fed into both the Women in Development Resource Center and AIDS central development information system

- To further the work being done under AIDs Basic Research and Implementation for Developing Educational Systems project (BRIDGES) the Office of Women in Development is funding a sub-project to collect data on girls retention transition and dropout rates at primary and secondary school levels With this statistical data base the project will use microcomputer modeling to explore alternative strategies that more effectively reach girls in developing countries and make policy-level recommendations in order to facilitate greater improvements in girls education

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Through collaboration with the Africa Bureau under the Human Resources Development Assistant Project (HRDA) the Office of Women in Development managed a project to create two prototype country training potentials profiles for women one in Cameroon and one in Tanzania HRDA is designed to provide training opportunities for both men and women in 29 African countries The HRDA project is the third in a series of projects designed to address Africas pervasive lack of trained human capital The increased atteition devoted to in-country and third-country training training opportunities for the private sector and women project management and planning and cost effectiveness represents a refinement in strategy based primarily on lessons learned from HRDAs predecessor projects The projects goal is to strengthen the capability of African development institutions and private sector entities to promote economic growth where the lack of an adequately trained cadre is a primary constraint

The International Center for Research on Women (ICRW) has prepared several technical papers on women in development One paper addresses AIDs trade development policy and support for the development of ties between private enterprises in developed and developing countries including offshore production by US companies abroad An analysis of Women and Export Manufacturing A Review of the Issues and AID Policy shows that AIDs emphasis on export promotion has more poteihtial to contribute to women in development goals than previously realized Moreover the consideration of gender issues has implications for policies to improve the overall development impact of AIDs export promotion activities

A one-day conference on Women and Struztural Adjustment was opened by the AID Deputy Administrator at the International Center for Research on Women Co-sponsored by the Office of Women in Development the conference gathered together experts in the field of small and microenterprise and structural adjustment to share research and recent activities undertaken by AID and ICRW A series of recommendations to be presented to Agency senior management are expected from this conference

E Development Education Programs

AID maintains an up-to-date resource center containing publications on women in developing countries for use in responding to both international and domestic inquiries

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The Office of Women in Development has taken the lead in supporting the training of AID personnel on how to incorporate gender issues in the policy program and project development cycle To this end the Office has developed the Gender Information Framework an Agency-specific set of tools guidelines and information for more effectively addressing gender issues in all aspects of program and project design implementation and evaluation

The Office of Women in Development has developed a training and orientation strategy that includes Bureau and Office training in Washington as well as regional and sub-regional workshops and orientation sessions in the field It also promotes incorporation of WID training in ongoing intra-Agency courses such as Project Design New Entry Orientation and the Development Studies Program Plans are underway to include training of contractor teams as well aa WID Officers and Coordinators

To implement its own training strategy and to fulfill requirements called for in Bureau WID Action Plans Mission initiatives the Administrators WID Action Items cable and recent legislation the Office of Women in Development has collaborated closely with regional bureaus and missions Region specific Office of Women in Development funded training sessions have already been conducted in the Africa and Latin AmericaCaribbean regions with the most recent workshop being in Antigua Guatemala for LAC Agricultural Development and Private Sector Officers An intensive three-day AsiaNear East workshop in Morocco as well as an Egypt Mission-specific workshop are planned for February 1989 Plans are also being made for a West Africa Regional workshop in September 1989

At the request of the Latin America and Caribbean Bureau (LAC) the Office of Women in Development conducted one day workshops in Guatemala and in Bolivia on gender issues in agriculture and income and employment-generating activities

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XVI NON-GOVERNMENTAL ORGANIZATIONS (NGOs)

A Role and Share of Private Voluntary Organizations in US Aid Progiams

Historically the US foreign assistance program has evolved in tandem with a strong partnership between the Agency for International Development (AID) and a large cadre of Non-Governmental Organizations -- or in US parlance Private Voluntary Organizations (PVOs)

AIDs support of PVOs has strengthened their capacity to undertake overseas development programs In little over a decade AIDs support of PVO activities has increased dramatically - from $39 million in FY 1973 to $430 million in FY 1987 At a time when AIDs own resources are severely limited PVO programs are an increasingly important part of AIDs effort to foster self-help development in the developing world

The AIDPVO partnership is based on a mutual commitment to overcoming problems of hunger illiteracy disease and premature death in the poorer countries of the world Its success flows from an understanding of and respect for the particular strengths each brings to the development effort

The diverse PVO community brings to its work overseas the traditional American values of pluralism voluntary action and concern for others PVOs provide direct channels for private people-to-people efforts and have the flexibility to operate in areas not always open to other avenues of development assistance PVOs also have the ability to generate awareness in the general public of the needs of the developing world Their broad public constituency is crucial to the support of development programs

As outlined in the Agencys 1982 PVO Policy Paper AIDs broad objectives for Private Voluntary Organizations are

to increase the economic development impact of AID shysupported PVO programs by integrating them more closely into overall country development programs and by focusing AID resources on support of programs in the field

to discourage undue PVO dependence on US Government financing by introducing minimum requirements for non-bS Government cash funding

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to reduce the administrative costs of AID- funded programs to both AID and PVOs by simplifying and standardizing management and administrative procedures and by creating a central focal point for PVO relationships within AIDs Food for Peace and Voluntary Assistance Bureau (FVA) and

to ensure that AID funding reflects its legislative mandate while calling into play such unique capabilities of voluntary agencies as their knowledge of the local situation and their programming and managerial flexibility

During the last two years the Agency has benefited greatly from the completion of an in-depth evaluation of the role of US PVOs in accelerating iocal institutional development This study is summarized below

In addition to the aforementioned evaluation the Agencys Advisory Committee on Voluntary Foreign Aid issued a report on PVO effectiveness in September 1988 This report reflects a year long Advisory Committee analysis of PVO Effectiveness in the strategic areas of policy dialogue sustainability management effectiveness and cost effectiveness The committee report provides further insight to the critically important issues surrounding PVO effectiveness

In FY 1988 AID obligated approximately $363 million in support of PVO programs AID also administered $272 million in PL 480 Title II commodities and related ocean freight costs to support PVO ford-based programs overseas and approximately $90 million for PVO migration and refugee assistance programs bringing total AID support for the international programs of PVOs in FY 1988 to an estimated $724 million

B PVO Activities in Development Education

The Biden-Pell Amendment (Section 316) of the International Security and Development Cooperation Act of 1980 enables AID to facilitate widespread public discussion analysis and review of issues pertaining to international development and to increase public awareness of their implications Through this program increasing numbers of Americans are being encouraged to examine the economic social political and technical factors relating to world hunger and poverty and to consider the impact these issues may have on the security and economic well-being of the United States The Amendment authorizes AIDs Development Education Program for which AID requested $30 million in FY 1988

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The major component of the Development Education effort is a competitive grants program which provides support on a cost-shared basis to private and voluntary organizations (PVOs) engaged in an effort to increase the American publics awareness understanding and concern for international development issues The purposes of this program are threefold

1 to generate widespread discussion and analysis of the root causes of world hunger and poverty

2 to extend and reinforce a constituency committed to support of and participation in an effort to address issues of world hunger and poverty and

3 to expand the network of organizations involved in development education and strengthen their capacity to deliver substantive effective programs

Since the Development Education program began in 1982 AID has awarded over 60 project grants to a wide variety of PVOs educational associations national membership groups service clubs and local community groups in support of their efforts to educate their constituents about international development

Development Education project grants are intended to serve as catalysts in private resources critical to sustaining and institutionalizing these efforts Project activities have included the design and delivery of training programs for teachers trainers church leaders and other leadership groups preparation and dissemination of resource materials for use in formal and non-formal educational settings innovative uses of media for educational outreach and series of workshops and seminars specific target groups such as women corporate leaders conservationists journalists farmers youth groups cooperative members and minority groups

AIDs Biden-Pell program initiatives have evolved a great deal over the last several years in order to respond to the changing needs and opportunities which continue to emerge in this relatively new field of Development Education

In FY 1987-88 AID is undertook its first major study of the impact of the Biden-Pell program based on its first 6 years of operation This assessment will be combined with a strategic planning process which will result in a Blueprint that will lay the groundwork for our activity in this area for the next five to ten years

We expect this process of evaluation and planning to lead to several other documents which will be useful not only to AID and its grantees but will provide a contribution to the larger

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community of those concerned with development education A publication on Lessons Learned will be produced as a by-product of this process as well as an evaluation strategy which will identify important areas for research and analysis We expect to have the Blueprint for Development Education available for public distribution by December 1988

C Evaluation

In 1986-87 AID sponsored a special evaluation series which compiled an empirically based assessment of the role of US PVOs in fostering and strengthening sustainable private institutions in communities in developing countries Twelve US PVOs that received matching grants from AID participated in the collaborative effort The evaluation teams visited 28 affiliate or partner organizations of these 12 US PVOs in 18 countries 6 countries each in Asia Africa and Latin America

The study shows that institutional development has become a significant component of American PVO activity with developing country partner organizations It is a open-ended process through which US PVOs work in partnership with developing country professionals to shape a viable institution -- through dialogue and experimentation with different programs and forms of interaction US PVOs provide assistance in leadership development staff training management systems and resource mobilization to help institutions become autonomous and eventually self-sustaining

While it is difficult to compare the variety of PVOs evaluated certain attributes were repeatedly found in the affiliate organizations reviewed that are viable The characteristics of strong institutions include

High Quality Staff Leadership and the ability to attrict and retain good senior staff

A charismatic leader was seen as crucial in launching and building a successful indigenous PVO The demands of running an organization including the need to relate to villagers district and national officials and politicians juggle money from donors from several countries skillfully manage the organization and lead in often trying circumstances all require a dynamic intelligent educated and politically astute individual

The leaders and senior staff of the indigenous PVOs in the series represent some of the most capable people in their countries PVOs are able to attract such people because of their programs and opportunities particularly in countries where government service can be unrewarding

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Roots A community base of support whether in a chieftaincychurch or a network of influential people in a capital cityworking in concert with involved citizens

Networks Communication and connections with similar institutions in the country with appropriate governmententities and with international organizations

Systems and Strategies An institutional vision goals and strategies coupled with management information systemshowever basic to allow for correction of errors and improvement of programs

Resources A diversified portfolio of financial support and income sources eg private funds from the parent PVO multilateral and bilateral donors foundations home government support philanthropic support etc An organization dependent on one source will not survive the inevitable changes in trends or budgetary distribution

The study also identified several factors which accelerate institutional development

1 The PVOAffiliate Relationship is critical in acceleratinginstitutional development The following kinds of assistance offered through the US PVOs proved important

Training for Staff Development Training is provided to rtually all levels of affiliate organizations in country

regionally and in the Ulited States depending on who is beingtrained and for what Training is perhaps the single most important contribution of the US PVOs They have most often utilized experience-based adult education approaches which focus on participation and problem-solving by the traineesdrawing on their own life experiences This instills in the participants a new sense of empowerment and self-confidcnce Training has tended to focus on participatory communitydevelopment approaches skill building n communicationdecisionmaking and leadership development and much less so on technical areas Increasingly however affiliates are requesting -echnical training as they become more proficient in carrying out sectoral projects

Management Systems While US PVOs are committed to management training their own expertise and therefore their assistance have tended to be more in interpersonal skills and how to operate in a participatory decisionmaking mode than in how to develop management systems for resource control and documentation Nevertheless in the cases where the US PVOs have made a significant effort to helD their affiliates develop management information systems plannng cycles cost

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effectiveness criteria and performance tracking systems the

results have been impressive Such tools and systems pay off

in better strategic decisions effectiveness in securing and

using resources and in the affiliates greater autonomy in

tracking its operations

Evaluation Systems Full evaluation and documentation

activities are expensive and not always cost-effective in small

organizations US PVOs have provided assistance in

developing economical ways to build basic recordkeeping

activities on measurable outputs into the original design of

activities -- a minimal requirement in order to fruitfully

analyze projects

2 Evolution of the Relationship Tutor to Partner to

Resource The relationship between the US PVO and local

affiliate evolves as the affiliate matures The continuation

and changing nature of the relationship is critical to the

institutional development process As affiliates absorb and

utilize this training the nature of the relationship tends to

evolve Furthermore as the affiliates become more

sophisticated and proficient in their work they become

partners designing their own programs and initiating requests

for technical assistance of a more sophisticated nature

As the affiliates become more self-reliant and need less basic

help continuing communication with US PVOs through

newsletters information sharing conferences and visits

become more important and help affiliates stay connected to new

ideas and approaches to technical and organizational issues and

help the US PVOs stay connected to the development needs of

local organizations In the mature relationship the US PVO

and the local affiliate are resources to each other

3 Resource Mobilization and Sustainability of the local

affiliate are critically linked Many PVOs have given lip

service to the need for autonomy of affiliates without

providing any serious help to develop the capacity to generate Some PVOs in this series havefuture financial support

learned from these mistakes and now make technical assistance

in resource mobilization the first item on their agenda

Importance of a Lean Program Another important lesson is to

start with as lean and inexpensive a program as possible so

that the local affiliate has a reasonable chance of taking over

the majority of financial responsibility as early as possible

Winning Combination of Leanness and Fancy Management Systems

It may seem contradictory but a lean organization goes hand in

hand with the fancy management systems discussed earlier All

of these are aimed at increasing efficiency controlling costs

and raising money

Availability of Other Donor Funding Some of the PVOs in this series discovered that non-American funding is often available for local PVOs doing good work provided the institution has a strategic approach to maintaining a diversified portfolio of supporters Although many local affiliates long remain dependent on the parent PVO (and hence on AID) for as much as half their financial support it was important to note that other sources are matching the PVOAID investment on a one-to-one basis

Scarce But Valuable Local Resources Local resources generated through donations or income generation and cost-recovery activities rarely account for more than 10 to 20 of the local PVOs budget However That money is important in that it provides unrestricted funds and flexibility in cash flow situations and ensures the commitment of local people to the program

Expectation Versus Reality of Economic Enterprises Nowhere is the gap between expectations and reality so great as in local PVO operation of economic enterprises A few PVOs in this series operate enteLprises keep the books separate from their own and make a modest profit after several years However more often than not local organizations operating microenterprises dont fully account for the costs and iistakenly1 claim that they are earning a profit

Realistic Time Frames Cases in which a local PVO became significantly independent financially or organizationally within three or four years of inception are rare What is needed is a long evolutionary partnership in which the high up-front costs of starting an institution are realistically followed by a long period of less expensive but crucial technical assistance and relationship maintenance

Conclusion Institution Development is a process which needs both a short and long-term strategy Institutional development is more effective and cost effective if it is planned as a simultaneously shorter and longer-term task The period of major financial dependency of the affiliate upon the US PVO can be dramatically shortened through early technical assistance aimed at creating in the affiliate the capacity for resource mobilization The period in which the parent PVO provides a range of specialized training technical assistance and networking needs to be viewed as essentially indefinite as a cost effective means of protecting the up-front investment This short and long-term strategy is a proven way to create and sustain local private voluntary organizations in development service to their countries

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XVII BROADER IMSTEUMENTS OF DEVELOPMENT COOPERATION

A The Private Enterprise Initiative

The Agency for International Developments Private Enterprise Initiative is based on the belief that development kindled by private enterprise operating in open and competitive markets will produce equitable self-sustaining development In

addition to improving the lives of the poor through the stimulation of broad-based economic growth private enterprise also offers the poor the opportunity to be a part of that economic development by opening the surrounding economies to employment training and higher income generation Over the long term economic growth through the private sector is critical if developing countries are to meet their requirements for achieving overall national development including basic

human needs

AID has expended much effort over the past six years to help foster the conditions needed for self-sustained economic growth for developing country private enterprises In addition to the projects categorized specifically as private enterprise development AID cooperates with recipient counLries on many projects in other sectors that use the private sector as a delivery mechanism or benefit the private sector

The Private Enterprise Initiative is Agency-wide involving all bureau and overseas missions and their resources AIDs Missions are responsible for developing and implementing mcqt of the Agencys private enterprise activities The Bureau for Private Enterprise (PRE) provides assistance to the Agency by developing innovative programming approaches for demonstration and replication by missions and by providing technical expertise and training in such areas as privatization private ent-erprise strategy development and financial sector development The Bureau for Program and Policy Coordination (PPC) provides the policy framework for Agincy-wide private sector activity

Progress to Date and Focus

There are several key elements to AIDs programs under the

Private Enterprise Initiative Each is addressed below

followed by a sampling of selected specific activities by way of illustration

1 Policy Dialogue and Reform

Policy dialogue and related technical assistance to influence

change 1n host government policies are essential elements of

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AIDs program Illustratively technical assistance is provided to both host governments and to private sector and nonprofit groups in order to increase the private sectors access to foreign exchange remove investment and export barriers reduce self-defeating government controls over production and marketing and identify and deal with other impediments to market-based growth Through policy dialogue AID has thus positioned itself to help developing countries help themselves to achieve the real increase in living standards that come with increasing prosperity brought about by vigorous market growth

AID Missions ampn the Latin America and Caribbean region have played a significzt role in the following policy initiatives which provide incentives for increased investment leading to expansion in nontraditional exports and employment generation For example AID policy dialogue has been instrumental in achieving appropriate exchange rate policies in Costa Rica and Guatemala where exchange rate misalignment was a major problem Legislation favoring establishment of export processing zones irdustrial parks and other measures to increase nontraditional exports have been implemented in Costa Rica Honduras Guatemala and El Salvador as a result of policy dialogue

In Bangladesh AID is working with the government to adopt more market-oriened banking policies rationalize interest rates mobilize savings increase loan recoveries and improve the efficiency of financial institutions and the Central Bank AID is also working to improve the data base on nonfarm enterprises in Bangladesh so the government can develop sound policies to stimulate jobs in small enterprises In the agricultural sector as a result of AID policy dialogue retail fertilizer prices were decontrolled leading to the creation of a network of competitive private retail dealers

In the Gambia a PL 480 title II food aid qrant program calls for Zeforms to encourage private entrepreneurial activity in the food and agriculture sector while taking steps to divest and privatize the Gambia Produce Marketing Board In Mali AID is contributing PL 480 grant resources to a multidonor promotional effort to liberalize the cereals market reduce public resources requited by the official cereals marketing system and improve incentives for producers to increase food grain supplies The private sector has increased its participation not only in the production and marketing of grain but also in developing with the support of project credit programs private sector facilities for seasonal and multiyear grain storage

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2 Privatization

Privatization is a major focus of AIDs program with developing countries AID views privatization as a vehicle to facilitate the adoption of free markets in which private enterprises compete with each other and result in increased cmployment higher incomes and improved standards of living It should be emphasized that not all of AIDs efforts involve divestiture or liquidation of unproductive state enterprises Some involve liberalization deregulation or policy reform efforts

In Costa Rica AID has worked with the host government to establish a trust mechanism to facilitate the sale or liquidation of enterprises held by the state holding company CODESA Thirty-eight of the 42 CODESA corporations and affiliates are on track to be divested Nine companies are in the process of sale 20 are in the process of liquidation seven have been transferred to other government agencies and two will remain with CODESA Companies that have been privatized were engaged in tuna processing coffee subproducts airlines transportation aluminum products cotton ginning and other agro-industrial enterprises

In Jamaica AID has been able to help that country take important steps to promote economic growth and privatization The most visible privatization activity that AID supported in Jamaica was pfivatization of the National Commercial Bank (NCB) in December 1986 Privatization of the NCB mobilized broad-based popdlar support through the sale of over 30 million shares of NCB stock Apart iro the nearly 2000 NCB employees who invested 15000 applications were for under 300 shares and 7000 applications were for 300 to 1000 hares Similar success has bee-n achieved with the more rLcent privatizations of the Caribbean Cement Company and the Telecommunications Company of Jamaica AID believes that this program has yielded many valuable lessons for other countries

The Center for Privatization a private consortium supported by PRE provides technical expertise needed by AID Missions for preparing country and sector-secific privatization strategies developing a list of components of a policy dialogue with host country public and private sector leaders and implementing privatization actions in selected countries The Center for Privatization has provided technical assistance to over 40 countries For example in FY 1987 ihe project developed national privatization plans and strategies in Honduras the Philippines and Thailand assisted the Government of Tunisia by providing advisors to analyze specific policy issues and assisted the Government of Jordan in its planning to privatize the state-owned airline the Amman city bus system and the telecommunications corporation

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3 Developing Financial Markets

AID relies upon a variety of mechanisms to address the financial markets problems affecting developing countries AID pursues economic growth in this area by encouraging the adoption of market-based policies offering technical assistance implementing specific investment and financial markets projects developing new financial instruments and pursuing other actions AID also relies upon private financial institutions cooperatives and private voluntary organizations (PVOs) as sources of credit to medium small and microentrepreneurs PVOs and cooperatives provide both direct loans and loan guarantees and introduce small businesspeople to banks and other commercial lenders

Illustratively AID has been instrumental in bringinig about market-determined interest rates and in reducing reliance upon nonmarket allocations of credit In addition AID has made tax reform an integral part of its policy dialoguc Aith developing countries AID has contributed to reducing marginal tax rates and removing disincentives to productive investment in many countries

There are several examples that demonstrate the diversity of the program In Indonesia an AID project is developing credit programs to mobilize local savings which are decentralized and nonsubsidized Loans raige from $50 to $500 principally for short-term working capital requirements of small traders In Cameroon AID is providing technical assistance to the Cooperative Credit Union League to offer member credit unions training in financial management savings promotion and credit administration Credit programs include nonfarm credit as well as small farmer production credit In Jamaica the Trafalgar Development Bank a private sector development finance institution provides medium and long-term credit to ventures primarily to new small and medium-size enterprises

In addition to the policy Teform and project activities of AID Missions the Privaze Sector Revolving Fund managed by PRE extends loans to developing country private intermediate financial institutions and private enterprises that do not normally have access to credit facilities PREs ability to cofinance developmentally oriented investment projects directlywith the private sector enables AID to work constructively and effectively with the business communities of AID-assisted countries and has opened new private sector opportunities in many countries in Asia Latin America and Africa

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AID also encourages developing countries to develop and utilize new debt and equity instruments for directing scarce capital resources into productive investments New financial instruments enable the financial market to spread risk among a variety of instruments thereby reducing exposure to market volatility and to be more flexible and responsive to the users of financial instruments

The investment program managed by PRE is developing new investment concepts instruments and approaches for mobilization of investment capital within developing country and international financial markets Among the innovative financial mechanisms being experimented with to stimulate indigenous private sector development are mobilizing international sources of privatc sector venture capital taking advantage of blocked funds debt--to-equity conversion programs and other capital leveraging methods and marshaling innovative credit enhancement strategies such as securitization

4 Cooperative Development Organizations (CDOs) and Private and Voluntary Organizations (PVOs)

AID support for the international programs of US cooperatives helps carry out the mandate of the Foreign Assistance Act to increase the participation of the rural and urban poor people in their countries development since cooperatives are often able to reach and work with this sector more effectively than governments and larger businesses PVOs have also been effective in working with small-scale private enterprises It is estimated that PVOs have helped establish thousands of new businesses and expand many more generating jobs training programns and higher incomes

ACCION InternationalAITEC through an AID grant is expanding microenterprise programs in AID-assisted countries Each year ACCION facilitates short-term creiit and basic business training for more than 16000 microenterprises Technoserve through a grant from AIDs Office of Private and Voluntary Cooperation (FVAPVC) provides management training to several hundred rural enterprises and cooperatives in Latin America and Africa

National Cooperative Business Association (NCBA) through the AID-funded International Trade Development Program established a trade facility which has promoted a significant volume of trade between US and developing country cooperatives and can now generate sufficient revenues to sustain its operations

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The International Executive Service Corps (IESC) with core grant support from the Bureau for Private Enterprise has recruited thousands of retired American executives to share their managerial and technical know-how with small business counterparts in the developing world IESC also provides links between American and developing country businesses often leading to commercial relationships In FY 87 IESC completed some 600 technical projects

B Initiatives to Increase Trade and Investment in Developing

Countries

1 Trade

(a) US Trade with Developing Countries

US-developing country trade has expanded steadily since the early 1960s Between 1962 and 1986 US imports from developing countries increased twenty-fold in real terms In 1986 33 of total imports into the United States came from the developing countries with 27 originating in non-oil exporting countries Between 1970 and 1986 US imports from the developing world increased at an average annual rate of 19 in current dollars (175 from non-oil developing countries) versus 156 for imports from industrial ccdntries

While much of the increase in developing country exports to the United States between 1979 and 1986 was in higher-value manufactures such as electrical machinery telecommunications equipment and office machines developing country exports of traditional manufactures including apparel increased 170 iron and steel 110 and footwear 230 Growth in US exports to developing countries averaged 122 annually between 1970 and 1986 compared to 104 for exports to industrialized countries Growth in US-LDC trade can in part be attributed to the general openness of the US market abetted by the Generalized System of Preferences (GSP) and the fact that there are no import duties on approximately 70 of imports from the least developed economies

The US GSP program gives duty-free tariff preferences to over 3000 products from 140 countries Revised and extended in October 1984 the program provides the potential for further liberalization and adds flexibility to ensure that GSP benefits accrue to those developing countries most in need of preferential treatment Developing country exports to the United States under the GSP program rose from $63 billion in 1979 to $163 billion in 1987 It is estimated however that because some developing country exporters lack information about GSP procedures and benefits developing countries could

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export products with value up to 20 - 25 more to the United States through the GSP program Technical assistance seminars supported by AID have sought to publicize and promote the use of GSP

(b) AIj Activities in Support of Trade

AID has long recognized the essential importance of trade in economic development For example AID was the principal sponsor of two major National Bureau of Economic Research studies on the subject Foreign Trade Regimes and Economic Development 1978 (11 volumes) and Trade and Employment in Developing Countries 1981 3 volumes) These extensive studies found substantial empirical evidence supporting the case for outward-oriented development strategies as the most successful and rapid means to economic development Since 1980 the importance of developing country export capability and performance ias been stressed as part of AIDs heightened concern about developing country macroeconomic policies debt servicing problems and slow growth

AID is addressing the challenge of accelerating export-led growth in developing countries by several means First at the policy level AID is encouraging developing countries to introduce more flexibility into their exchange rate regimes to reduce other export-impeding policies such as excessive foreign exchange controls and import restrictions and to reduce high

effective rates of protection for import-competing industries AID is pursuing his approach in the general context of its

policy dialogue with host countries by supporting the stabilization and structural adjustment efforts of multilateral

financial institutions and by working with other bilateral donors on specific cases

At another level AID attaches conditions to some of its

assistance in order to address economic stabilization or

structural problems including liberaliza ion of import controls and reduction of restrictions on exports AID also designs some of its programs such as Commodity Import Program

(CIPs) in selected countries to give priority to imported inputs used by producers of export products

There has been a substantial increase in efforts to encourage

exports in AID country program strategies and in specific programs This trend applies particularly to Latin America where spurred by Caribbean Basin Initiative (CBI) there has

been a marked increase in AID activities that specifically address exports The number of explicitly export-oriented activities has increased from a handful prior to 1982 to over

40 in 1987 The AID-assisted export programs stress

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increasing export competitiveness and diversification of exports in agriculture industry and handicrafts AID export-oriented productive projects focus on training technical assistance and encouraging private foreign investment in export-oriented businesses

(c) US Trade and Development Program

The US Tra6e and Development Program (TDP) was established in 1980 as a component of the International Development Cooperation Agency (IDCA) TDP is charged with contributing to the economic development of developing countries and assisting the US business community in gaining access to markets for technology equipment and services throughout the developing world TDP finances feasibility studies and other planning services for projects that further these two objectives

TDP operates two distinct programs for public sector and private investor projects Public sector capital infrastructure projects such as power and transportation projects are usually financed by the host country the World Bank or regional development bank TL works on a government-toshygovernment basis in connection with such projects providing grant financing for planning services to be provided b US engineering and planning firms selected competitively by the host country government

TDPs private investor program has recently been restructured to ensure a maximum return on TDPs investment Under this program TDP provides assistance on a four year no-interest basis for u to 50 of the cost of the feasibility study to a US privat investor who intends to invest in a developing country Tje US investor must plan to maintain the majority of equity in the project and the value of the project must potentially generate exports no less than 75 times the amount of TDPs assistance to the cost of the feasibility study

TDP emphasizes project development in middle-income developing countries in which the United States has no bilateral aid program or in which economic assistance is being phased out Among the countries where TDP is active are China Taiwan Colombia Zimbabwe and Turkey TDP also anticipates significant programs in Thailand India and the Philippines

TDP has helped to mitigate declining US trade trends by succeeding in specific industrial sectors and specific countries where exports have otherwise shown F decline For example TDP generated exports in the transportation sector despite a substantial decline in US market share for civil engineering equipment in Thailand during the 1980-1984 period

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In China where virtually all markets are just opening up TOP assisted US firms in establishing a trade base In Latin America TDP has targeted telecommunications as an industry of size and growth potential which might otherwise have been lost to the competition

One of TDPs greatest contributions is to assist US companies to establish contacts and a market presence r a country while executing a TDP-funded study Although not all projects related to the feasibility study go forward the companies have gained recognition and a reputation as a strong competitor In the international marketplace companies repeatedly receive offers and contracts for spin-off projects related to their participation on a TDP funded project For example the Communications Satellite Corporation (COMSAT) undertook a telecommunications study in the Ivory Coast funded by TDP As a result of assessing the telecommunications needs of several government ministries and making contacts in each of these ministries COMSAT received a $35 million follow-on contract from the Office of National Telecommunications with other larger potential conitracts to follow

TDP can make the difference in a US firm receiving a contract award because TDPs participation represents a concrete symbol of US Government support For example General Motors approached TDP with a proposal to fund a study for a progressive manufacturing joint venture in the Peoples Republic of China After lengthy negotiations it was apparent China would not go forward without some type of US Government support Therezre TDP assisted in a reimbursable grant making it possible for this $20 million project to take place

2 Investment

The United States has also put renewed stress on increasing the flow of investment to developing countries In addition to the investment-related activities of TDP just described several approaches are employed

The United States is designing moLe programs in countries in all developing regions designed to attract foreign investment in production activities for domestic and export markets New PL 480 provisions have been enacted permitting the use of local currencies generated by food aid loan repayments to support private sector investment The United States has also increased efforts to help developing countries make their economies more attractive to potential investors by improving the policy climate through dialogue and conditioned assistance The United States signed the Convention

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establishing the Multilateral Investment Guaranty Agency (MIGA) the newest part of the World Bank group which is designed to promote private sector development in developingcountries by offering investment insurance and encouragingpolicy reform Funding for the MIGA was provided in the FY 1988 budget

The US Overseas Private Investment Corporation (OPIC) has greatly expanded its operations to facilitate investment in developing countries The OPIC investment insurance programhas grown from a low of $600 million in 1972 to $18 billion in 1987 For the five years between 1983 and 1987 OPIC issued a total of $167 billion in coverage for 710 investment projects compared with a $144 billion total for the first 12 years of OPICs operations between 1971 and 1982 During the 1983-1987 period OPIC made direct loans investment guarantees and local-currency loan commitments of more than $755 million in support of 127 projects around the world

The US Bilateral Investment Treaty (BIT) program was designed to encourage and protect US direct investment in developing countries The United States has signed ten BITs with Bangladesh Cameroon Egypt Grenada Haiti Morocco PanamaSenegal Turkey and Zaire Of these eight have received Senate advise and consent to ratification and are awaiting the Presidents signature The Haiti and Panama treaties have been held back indefinitely The United States has also initialed a BIT with Gabon

The United States is currently reviewing with which countries it should resume or commence negotiations The United States is close to a final text with Uruguay and AntiguaBarbuda and is considering whether to respond favorably to Tunisia request for BIT negotiations

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Table XVII1

Structure of US Official and Private Flows Net disbursements


Calendar year Type of transaction I 1986reg 1987

Amount Percent Amount Percent

Total official and private flows

(I + II+ III + IV) 018231 100 13193 100

Total official flows (I + II) 9005 49 7166 54

I Official development assistance (ODA) 9564 52 8945 68

Bilateral grants and grant-like flows 7033 39 6688 51 Bilateral loans 569 3 319 2 Multilateral2 1962 11 1938 15

If Other official flows (OOF) -559 -3 -1780 -13

Total private flows (III + IV) 09226 51 6028 46

III Private flows at market terms 07473 41 4395 33

Direct investment 3 3107 17 8016 61 Multilateral portfolio 171 1 340 3 Other long-term assets including export credits 64195 23 -3961 -30

IV Grants by voluntary agencies 1753 10 1633 12

0 Revised from presentation in 1987 submission all 1986 percentages are revised 1 For details see DAC questionnaire table 1 2 Disbursements of capital subscription payments to multilateral development banks are recorded on the issuance basis 3 Includes net new direct investment and reinvested earnings


October 31 1988

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Table XVII2 Summary of US Official and Private Flows Net disbursements


Type of transaction Calendar year Annual _1986 1987 change

Total official and private flows (I + II + III + IV) reg18231 13193 -28

Total official flows (I + II) 9005 7166 -20

I Official development assistance ODA) 9564 8945 -6

II Other official flows (OOF) -559 -1780 na

Total private flows (III + IV) reg9226 6028 -35

III Private flows at market terms2 07473 4395 -41

IV Grants by voluntary agencies 1753 1633 -7

sect sect sect sect sect sect sect sect sect sect sect sect Memo item sect sect sect sect sect sect sect sect sect sect sect sect

US Gross National Product 3 (billions of dollars) 04226 4502 7

Percent of flows to US GNP

Total flows Official and private 043 29 sectsectsectsectsectsect

ODA flows 23 20 sectsectsectsectsectsect

o Revised from presentation in 1987 submission 1 For details see DAC questionnaire table 1 2 Includes net new direct investment and reinvested earnings portfolio investment and export and trade credits 3 GNP is standardized System of National Accounts (SNA) data most recently submitted to the OECD


October 31 1988

US ANNUAL AID REVIEW MEMORANDUM

TABLE OF CONTENTS

Page

I Major Policy Orientations 1

II ODA Volume 9

III Aid Quality Composition and Financial Terms 16

IV Public Opinion and Information 22

V Multilateral Contributions 25 A Multilateral Development Banks 25 B Contributions to International Organizations 28

VI Geographical Distribution 37

VII Aid Coordination Country Programs and Development Strategies 40

VIII Adapting Aid Policies to Policy Reform and Structural Adjustment Efforts of Developing Countries 45

IX Technical Cooperation 47

X Aid Management 48

XI Associated Financing and Related Aspects 53

XII Procurement Policies and Practices 55

XIII Sectoral Orientation of Aid 56 A Aid for Agriculture Rural Development

and Food Security 56 B Aid for Energy 58 C Aid for Health and Population 59 D Aid for Education and Human Resources 62

XIV Aid and the Environment 64

XV Women in Development 69 A Implementation of WID Policies 69 B Programs to Reflect Distinct Roles

and Functions of Women 70 C Actions to Promote WID Concerns in

NGOs and Muliilatecal Organizations 72 D Measures to Support WID Research 72 E Development Education Programs 73

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Page





STATISTICAL TABLES






Organizations 33








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A Overview






-2-






- 3-








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-7-






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burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

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1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























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-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









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3 US Role in IFAD



4 Policy Goals



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-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

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1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































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-44-








































efficiency

-45-





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many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









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-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

Page





STATISTICAL TABLES






Organizations 33








-iishy



A Overview






-2-






- 3-








-4shy










-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988



A Overview






-2-






- 3-








-4shy










-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

-2-






- 3-








-4shy










-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

- 3-








-4shy










-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

-4shy










-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

-5shy










-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

-6shy










-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

-7-






-8shy













burden

-9-









-10-





-









-------------------------------------------------------------

------------------------------------------------------------

-11shy





1984 1985 1986 1987 Total ODA 10477 10280 10753 9365

change -- -2 +5 -13







---

-------------------------- ------- -------

---------

-12-

Table 113







Food for Peace (PL 480) 3271038762 32008




















8260085361 79352GRAND TOTAL

-13-

Notes to Table II3

1

2

3

4

5





1982 1983 1984 1985 1986 1g87 1982 1983 1984 1985 1986 1i


Bilateral 5546 6183 7149 8889 8492 7692 6112 6989 8144 9157 J 746 7412



Peace Corps 101 116 110 120 130 126 107 11l 119 125 127 130


Multilateral 3345 L 2259 1226 1968 1944 2120 2475 233 1122 2007 1953






Other 371 351 382 389 297 351 343 361 375 348 378 342






October 31 1988

TABLE 1I4b




1982 1983 1984 1985 1986 1987 989-983 1984 1985 1986 1987





Multilateral 3345 2522 2259 1226 1968 1944 2120 2475 2333 1122 2007 1953












-16-










-17-






-18-







TABLE 1111







grant element

Total 10753 1961 12714 966 9365 1996 11361 970





OOF 1785





771 724

1964





906 911

76 182

778 859


918 922

--

--

756 849




October 31 1988

TABLE 1112







FAA

ATDA

Total new ODA

681

618

638

367

350

355

110

87

94

283

279

281

675

620

638

378

349

358

105

85

91

295

276

282




Source

1988October 31

-21-




FY 1986 FY 1987 FY 1988 FY 1989

2066 2198 2273 2312 3762 3876 3201 3271 1243 1083 1060 1098

580 697 695 758 1404 1444 1450 1541 9054 9299 8678 8979



FY 1986 FY 1987 FY 1988 FY 1989

23 24 26 26 42 42 37 36 14 12 12 12 6 8 8 8

16 16 17 i7





Total


FY 1987 FY 1988 FY 1989

6366 4887 4937 2296 1979 1979 1598 1190 1224 750 660 710 -- 300 400

1566 1170 1295

1933 1207 1207 97 87 87

1089 125 125

15698 11605 11965

-- 5500 5500

-22-






























-23shy





-24-



-25-




1 World Bank



-26-


these countries













---

---

---

---

---

-27-


FY 1986 - FY 1989

FY 1986 Actual


IDA 669900


IFC

MIGA Paid-in

Callable

IDB Paid-in Callabl

FSO

IIC


ADF


AFDF


Program Limitations

71775

27827

36367 (1230965)

38280

11197

11397 (226230)

95700

15493 (48564)

59573

1142512

(2858979)

($000)

FY 1987 Actual

55805 (688262)

830100

64805

7206

16417 (1111561)

17263

13233 (251367)

91406

20480 (59356)

90427

1207141

(2110546)

FY 1988 Actual

40176 (437320)

915000

20300

44403

(177612)

31600 (119404)

25732

1303

15057 (276504)

28000

8999 (13491a)

75000

1205571

(1145758)

FY 1989 Actual

50001 (2292973)

995000

4892

152392

7345 (135063)

105000

1314630

(2428035)

-28-









-29shy







-30shy









-31shy


3 US Role in IFAD



4 Policy Goals



-32shy





-33-













116500 192300 150000






-----------------------------------------------------------------

--- -------------------------------------------------------------

---------------------------------------------------------------

----------------------------------------------------------------

----------------------------------------------------------------

--- ------------------------------------------ ------------------

-34-


($ thousands)

FY 1985 FY 1986 FY 1987




















---

-35-



($ thousands)

FY 1989 Actual

i11000 60400

22000

10000 9500

2000

1960 1500

800

800 250

650

100 980

500

245 110

400

2500 220

200

226115c
















Total


107500 110000 51080 54400

20500 21854

13500 12000 6800 7840

2000 2000

2000 1960 861 980

789 784

219 220 150 150

172 170

86 90 1818 980

250 245

--- 100 245 110 110

400 400

28710 30000 219 220

237264a 244648b

-36-

Notes to Table V3



-37-


A General Trends







----------------------------------------------------------

-38shy




1984 1985 1986 1987

Europe 150 120 143 -44




Oceania 188 165 230 176




-39-


(in $ millions)

1984 1985








1986 1987









-40-














for policy reform

-41-







-42-
































-43shy





-44-








































efficiency

-45-





-46shy







many other programs




























-47-






-48-

X AID MANAGEMENT







-49-





-50-









-51shy











-52shy





-53-








Administrator

-54-

C The War Chest







-55-





-56-






Table XIIIl


FY 1987 FY 1988 FY 1989



$434TTotal $




-57-


2 Food Aid Policies







-58-




Total PL 480 Program $14630 $14370 $14810

B Aid for Energy



energy industry





1 Electric power










-59shy








1 Health


-60shy
































services

2 Population








-61shy








-62-









-63shy





-64-













-65shy






-66-







-67shy









-68-






-69-







-70-





following

1 Workplan











2 Activities






















-71-




4 Areas of Emphasis




-72-










-73-






-74-





-75-










-76shy








-77-










-78shy


C Evaluation







-79-










-80shy












analyze projects

































and raising money






-82-





human needs










-83shy





-84shy

2 Privatization





-85shy






-86-







-87-



Countries

1 Trade





-88shy
















-89shy








-90-




2 Investment



-91shy





-92-

Table XVII1






(I + II+ III + IV) 018231 100 13193 100











October 31 1988

-93-


















October 31 1988

Memorandum To The Development Assistance Committee

Documents

Transcript of Memorandum To The Development Assistance Committee