Routledge Library Editions: Development Mini-Set B: Aid: The by George M. Guess

By George M. Guess

First released in 1987, this reissue explores modern usa international relief rules and pondering within the Reagan period. the writer argues that relief coverage is frequently stressed because of bureaucratic decision-making methods. The ebook contrasts the event of the numerous international locations the place aid-giving has produced unwished-for results with the few international locations the place the specified effects have happened. the writer concludes by way of arguing for a brand new method of aid-giving by means of the USA.

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Extra resources for Routledge Library Editions: Development Mini-Set B: Aid: The Politics of United States Foreign Aid (Volume 7)

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Instead of money for the poor, LDCs need (1) preferential trade agreements for their exports to donors, (2) untied program aid so that when food and fuel shortages occur, LDCs don’t have to buy Land Rovers or foreign technicians, and (3) aid for recurrent or operating expenditures such as salaries and maintenance. For, despite “New Directions”, the traditional theory persists that development occurs by capital The Political Economy of US Foreign Aid: Past and Presentâ•… 33 growth and that operating expenditures are not “bankable” (1982:60).

The Development Loan Fund was created to provide capital assistance loans, 75% repayable in borrower currency on soft terms. By 1960, the US was worried about the costs of foreign aid on US balance of payments deficits. Whether the real costs outweighed the benefits is debatable since many resources returned to the US. 6 billion from 1955–1969 (1971:91). Nevertheless, the perception of unprofitability was there, derived in part from the colonial heritage of “primitive fiscal orthodoxy” (Kaplan, 1967).

Clearly, the emphasis of US foreign aid had shifted from economic to military predominance in the mid-1950s. According to Morley (1961:29) the military assistance share of all foreign aid was 24% in FY 51, 38% in FY52, and about 70% in FY 56. The Rio Pact still served inter-American security interests, and during this period the US provided “political aid” in 1954 to the new Guatemalan regime after the “anti-communist coup” (Morley, 1961:46). It was soon evident, however, that the lack of indigenous regional nationalism in the Far East, Middle East and Latin America would make duplication of the European aid model difficult.

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