Short introduction to nonproject assistance

relies increasingly on "nonproject assistance" (NPA), defined as generalized, short-term, resource support provided to a host country"s economy as a whole or to one of its main subsectors. This paper describes five types of NPA - Cash Transfers, Commodity Import Programs, Sector Assistance, and P.L. 480 Titles I and III - and identifies three reasons for NPA"s popularity: (1) NPA serves U.S. foreign policy and security interests; (2) NPA enables A.I.D. Missions to move money quickly in the face of their own and host governments" personnel and management constraints; and (3) NPA facilitates policy dialogue, helps host countries cover recurrent costs, and directly assists the private sector, an increasing focus of the donor community. The paper"s final section analyzes key NPA issues - policy reform and conditionality, the use of local currency, A.I.D. and host government accountability, fungibility and additionality, and the projectizing of NPA resources. Appended are a set of indicators for identifying NPA on A.I.D."s Development Information System (DIS) and an annotated select bibliography on NPA (24 items, 1970-86).