Developing an AID trade and investment strategy

This study reviews A.I.D."s trade and investment portfolio and develops a strategy for improving Agency efforts in these areas. The study asserts that, while many developing countries are likely to seek assistance in trade and investment, A.I.D. is not well prepared to meet their needs. The Agency has not devoted the resources necessary to influence broader U.S. bilateral and multilateral trade and investment policies or made a concerted effort to identify methods of advancing U.S. commercial interests in conjunction with the promotion of economic development in the Third World. Much of A.I.D."s nonproject assistance is in the form of cash grants with no commercial focus, while Commodity Import Programs, though more commercially oriented, are often inefficient. There is also resistance within A.I.D. to helping U.S. business, even if this may be the most effective method of promoting development. The study concludes that increased efforts in the areas of trade and investment would have significant development benefits, but success would require a sizable increase in staff resources and strong commitment by top management.