Introductory Overview on Aid: Difference between revisions

From Dickinson College Wiki
Jump to navigationJump to search
Mercedes (talk | contribs)
mNo edit summary
Mercedes (talk | contribs)
mNo edit summary
Line 32: Line 32:
----
----


<br><div style="font-size:145%;border:none;margin: 0;padding:.1em;color:#999">What countries are giving aid?</div><br>
The United States is the largest international economic aid donor in
dollar terms but is the smallest contributor among the major donor governments
when calculated as a percent of gross national income.
[[Image:ODA.JPG|thumb|Description]]
<br><div style="font-size:145%;border:none;margin: 0;padding:.1em;color:#999">What countries are receiving aid?</div><br>
<br><div style="font-size:145%;border:none;margin: 0;padding:.1em;color:#999">What countries are receiving aid?</div><br>
:In the full year of 2004, the United States provided some form of foreign aid to about 150 countries. Assistance is provided to many nations but is very concentrated in certain countries, portraying the priorities and interests of United States foreign policy at the time.
:In the full year of 2004, the United States provided some form of foreign aid to about 150 countries. Assistance is provided to many nations but is very concentrated in certain countries, portraying the priorities and interests of United States foreign policy at the time.

Revision as of 12:06, 30 November 2006

Description


Broad View on Foreign Aid: U.S. Programs and Policy


Forms of aid:
Aid can be broken down into five distinct categories. The first one is bilateral development aid, followed by economic assistance supporting U.S. political and security goals, humanitarian aid, multilateral economic contributions, and military aid.
Who manages the aid:
  • The U.S. Agency for International Development (USAID) manages the bulk of bilateral economic assistance; the Treasury Department handles most multilateral aid; and the Department of Defense (DOD) and the State Department administer military and other security-related programs.
  • The House International Relations and Senate Foreign Relations Committees have primary congressional responsibility for authorizing foreign aid programs while the House and Senate Appropriations Foreign Operations Subcommittees manage bills appropriating most foreign assistance funds.
  • Bilateral development assistance has become the largest category of U.S. aid mainly because of the recent implementation of two new foreign aid plans- the Millennium Challenge Corporation, created in 2004, and the Global AIDS Initiative.
  • The Millennium Challenge Corporation (MCC) was established in 2004, and it is supposed to concentrate on significantly higher amounts of U.S. resources in a few low- and low-middle income countries that have demonstrated a strong commitment to political, economic, and social reforms. If completely funded, $5 billion will be available by 2006 to support these countries in order to accelerate economic growth and lower the number of people living in absolute poverty. The MCC is expected to provide significant levels of assistance to countries that meet specific standards of good governance and free market economic reform.



Description



Bilateral development assistance:

  • This kind of aid is to propel the economic improvements and uphold social stability in poor countries. U.S. Agency for International Development (USAID) manages the bulk of these funds and their used for long-term projects in the areas of economic improvement and private sector development, democracy promotion, environmental protection, and for human health. Bilateral development assistance goes to different institutions, such as the Peace Corps, the Inter-American Development Foundation, the African Development Foundation, the Trade and Development Agency, and the new Millennium Challenge Corporation.

Economic aid supporting U.S. political and security objectives:

  • This aids main purpose is to help support U.S. economic, political, or security interests. Most of these funds are provided by the Economic Support Fund (ESF), its purpose to advance U.S. strategic goals with economic aid. Ever since 1979, most of ESF goes to support the Middle East Peace Process. Now since 9/11, a lot of ESF funds are focused on countries with Importance relating to war on terrorism. ESF funds can be used to help underdeveloped countries stabilize their economy and foreign debt.
  • With the fall of the Soviet empire, the United States established two new aid programs for their particular strategic political interests. The SEED (Support for East European Democracy Act of 1989) and the FREEDOM Support Act (Freedom for Russia and Emerging Eurasian Democracies and Open Markets Support Act of 1992) programs were made to help Central Europe and the new independent states of the former Soviet Union (NIS) attain democratic systems and free market economies. Several other global issues that are considered threats to U.S. security and well-being — terrorism, narcotics, crime and weapons proliferation — also receive attention from the foreign assistance program, especially since the war on terrorism began.

Humanitarian assistance:

  • In contrast to the development aid programs, which are usually long-term efforts, three programs are devoted to immediate help of humanitarian emergencies. Much of the humanitarian aid supports various refugee relief programs, such as the International Committee of the Red Cross, and is administered by the State of the Department. Some of the programs, such as the Offices of Foreign Disaster Assistance (OFDA) provide help to victims of manmade and natural disasters.
  • Adding to the program is the food aid program which as it says provides food for poor countries. Although the food aid is mostly used as humanitarian relief for underdeveloped countries, there are some funds used as a “farmer-to-farmer” support program, which sends many U.S. volunteers to provide technical advice and training to farm and food-related groups around the world.
  • A new program that started in 2002 is the McGovern-Dole International Food for Education and Child Nutrition Program, which provides goods, technical assistance, and finance for school feeding and child nutrition programs.

Multilateral assistance:

  • The multilateral aid receives a relatively small share of U.S. foreign assistance, 8% in 2004, and is combined with contributions from other donor nations to finance multilateral development projects. For 2004, Congress appropriated $1.7 billion for such activities implemented by international organizations, like the United Nations Children’s Fund (UNICEF) and the United Nations Development Program (UNDP), and by multilateral development banks (MDBs), such as the World Bank. On average, U.S. contributions represent about 20% of total donor transfers to the multilateral development banks.

Military assistance:

  • The U.S. supplies military aid to U.S. friends and allies to help them obtain U.S. military equipment and training. There are three main programs within the military assistance program. Foreign Military Financing (FMF) is a grant program that allows governments to receive equipment from the U.S. government or to access equipment directly through U.S. commercial channels. Like ESF, most FMF grants support the security needs of Israel and Egypt. The International Military Education and Training program offers military training on a grant basis to foreign military officers and personnel. Peacekeeping funds are used to support voluntary non-U.N. operations and training for an African crisis response force and for the Afghanistan National Army.


What countries are giving aid?

The United States is the largest international economic aid donor in dollar terms but is the smallest contributor among the major donor governments when calculated as a percent of gross national income.

Description

What countries are receiving aid?

In the full year of 2004, the United States provided some form of foreign aid to about 150 countries. Assistance is provided to many nations but is very concentrated in certain countries, portraying the priorities and interests of United States foreign policy at the time.
Description

Characterizations of U.S. Foreign Aid

Figures 3 illustrates the top 15 aid recipients for 1994 and compares how the top 15 has changed in 2004 and the amount of dollars that each recipient receives, respectively. In the figures there are both similarities and sharp differences between country aid recipients for the two periods. The most consistent recipient over the past decade are top recipients because of the U.S. desire to maintain peace in the Middle East, with large programs maintained for Israel and Egypt.
The U.S. goal of efforts towards lowering the narcotics in Latin America is also why in both periods Bolivia, Peru and Colombia are also part of the top recipients. The bottom four recipients are usually a temporary circumstance, in which assistance is needed for the country because of an emerging conflict. That is why the recipients from 1994, Haiti, Bosnia, and South Africa, where replaced by Liberia and Sudan in 2004.


But there are also contrasts in the leading aid recipients since the past decade. The most obvious is that Iraq is definitely the largest recipient of U.S. aid in 2004 receiving a whopping $18.44 billion whereas Israel was only receiving about 3 billion in 1994. The impact of the terrorist attacks on September 11, 2001, and the followed use of foreign aid to support other nations threatened by terrorism or helping the U.S. combat the global threat is clear in the country-aid allocations for 2004. Afghanistan, Pakistan, Turkey, Jordan, and Indonesia are important partners in the war on terrorism.