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The full measure of U.S. development assistance

  
  Acknowledgements

Foreword

Overview: Promoting Freedom, Security and Opportunity

Chapter 1: Promoting Democratic Governance

Chapter 2: Driving Economic Growth

Chapter 3: Improving People's Health

Chapter 4: Mitigating and Managing Conflict

Chapter 5: Providing Humanitarian Aid

Chapter 6: The Full Measure of Foreign Aid

Last updated: Tuesday, 07-Jan-2003 10:18:19 EST

 
  

Jump to Overview Sections:
>> 50 years of development gains >> Promoting democratic governance >> Driving economic growth >> Improving people's health >> Mitigating and managing conflict >> Providing humanitarian assistance >> The full measure of U.S. development assistance-official and private >> Notes >> Background papers >> References

Heroes. The Mexicans living in the U.S. and sending money to relatives back in Mexico are heroes.
Adapted from Vicente Fox
President
United Sates of Mexico

At $9.9 billion, official development assistance accounts for just 17 percent of U.S. assistance to developing countries (table 1). Private international assistance, by contrast, is $33.6 billion - 60 percent of the U.S. contribution, and projected to grow to 69 percent by 2010. Every year the publication of the OECD’s report on development assistance results in press reports and statements by academics and opinion leaders disparaging America’s stinginess. They assert that U.S. foreign policy will be ineffective without more official development assistance.53 They claim that U.S. foreign aid programs collapsed after the Cold War.54 But official development assistance is a limited and outdated way of measuring a country’s giving, and donors should reevaluate it, given the enormous growth in the private sector around the world.

In 2000 the international affairs budget totaled $22.6 billion-so at $9.9 billion, official development assistance accounted for less than half. That official assistance consists primarily of allocations to USAID, the Peace Corps, multilateral institutions, and certain programs sponsored by the State Department and Department of Defense (table 2). The other $12.7 billion spent on international affairs represents all other contributions.

Despite reservations about government aid, Americans have a long tradition of domestic and international generosity. Money finds its way from the United States to developing countries through churches, private charities, foundations, and remittances by U.S. workers to their homelands. In 2000 U.S. universities and colleges gave more to developing countries in foreign scholarships than Australia, Belgium, Norway, Spain, and Switzerland each gave in official development assistance. Remittances from U.S. immigrants to their homelands exceeded official development assistance from Japan-the second largest provider (in dollars) of government aid to developing countries in 2001.

Over the past 25 years U.S. private giving has grown significantly. Churches and other religious congregations initially played the largest role in international giving through relief and humanitarian assistance as well as overseas missions. Then colleges, universities, and foundations began responding to international development needs with scholarships and support for foreign universities and research centers. The number and budgets of private voluntary organizations have also grown as Americans have offered their money and time to international causes. With globalization and changing immigration patterns, U.S. corporations have also increased their philanthropy to developing countries. And U.S. immigrants, many from developing countries, have been sending more and more money back to their homelands.

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