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A HALF PENNY ON THE FEDERAL DOLLAR: THE FUTURE OF DEVELOPMENT AID.(Review)

Publication: International Journal on World Peace

Publication Date: 01-JUN-00

Author: Gray, Kenneth R.
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COPYRIGHT 2000 Professors World Peace Academy

Michael O'Hanlon and Carol Graham

Brookings Institution Press, Washington, DC, 1997

102 pages with notes and index, $24.95

Foreign aid for the poorest countries is the subject the authors, both research fellows at the Brookings Institution in Washington, DC, analyze in this study. It is an important but often ignored subject. Rather than arguing for just the allocation of more resources to address the problem of persistent poverty, they advocate a more selective US approach: targeting development assistance to countries that have adopted sound economic policies. Currently, the US development aid budget is in rapid decline.

The volume starts out by defining US development assistance according to the 1961 foreign assistance act. This can be summarized into four categories: (1) Humanitarian relief, such as that provided after natural or conflict related disasters; (2) Grassroots aid for activities such as provision of primary health-care services and support to certain types of micro-enterprises; (3) General assistance for development of a national economy--focused on economic matters, but also directed to other national needs such as legal institutions; (4) Targeted aid for purposes such as environmental preservation--protection of a wildlife refuge or substitution of an ozone-depleting chemical with a more benign substance in air conditioners, for example--or support for Non-Governmental Organizations (NGO) or for election monitoring....

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