Compilation of General Accounting Office Report Findings and Recommendations on the Administration of U.S. Economic and Military Foreign Assistance Programs

The President is also authorized to provide assistance to promote the economic development of less-developed countries and areas, with emphasis on loans that assist long-term development plans and programs, and on technical cooperation and grants that assist the development of human resources. GAO has issued a number of reports on problems in the overall administration of development-oriented assistance programs in specific countries or regions, and has also issued several reports dealing with generalized problems of development lending, which has become the major form of U.S. economic assistance. Reports on these two general topics - country programs and development lending - are summarized below. Country Programs Administration of Nonproject Economic Assistance to Colombia In a 1968 report, GAO concluded that, despite $430 million of U.S. economic assistance and $1.2 billion of economic assistance from other sources during the 1946-1967 period, Colombia's annual economic growth and social progress had been considerably less than planned, due in large part to problems encountered in Colombia's own self-help performance. While there was little doubt that AID assistance had stimulated Colombia's development efforts and encouraged Colombian self-help measures to some degree, the real issue was whether AID actions had stimulated an optimum effort by Colombia in its development process. GAO found that AID had not made systematic or substantive evaluations to gauge Colombia's progress and performance in many areas, and had not made an independent overall review of the adequacy and effectiveness of AID strategy for achieving U.S. objectives. In addition, AID had not established specific goals and targets in many areas, did not tailor its level of assistance to specific levels of country performance, and had not developed systems for gathering and accumulating basic data or for developing future strategy. GAO proposed that AID: 1. Ensure systematic substantive evaluations of Colombia's progress and performance in key areas affecting its economic and social development. 2. Develop alternative annual levels of assistance tailored to specific levels of Colombian performance. 3. Develop a method of funding under which the release of AID assistance would be related to specific levels of Colombian performance. 4. Require regular management reviews of the overall effectiveness of AID program strategy in Colombia by knowledgeable independent officials. AID agreed that GAO proposals (3) and (4) deserved further consideration, but took exception to proposals (1) and (2), which they claimed were already being carried out in Colombia. GAO did not agree that substantive evaluations were being made in many areas, and noted a number of key areas where they were not. GAO also did not believe that AID had tailored annual assistance levels for Colombia. MILITARY ASSISTANCE The Department of Defense generally administers defense international activities, including military assistance programs, which is administered under the Foreign Assistance Act of 1961, as amended, and related legislation. These activities include cooperative efforts with foreign countries to improve their military capabilities and to strengthen their defense capabilities. The Department of Defense is responsible for establishing and implementing U.S. foreign policy, including representation in relations and negotiations with other countries and international organizations. The Department of Defense also administers defense international activities, including military assistance programs, which is administered under the Foreign Assistance Act of 1961, as amended, and related legislation.