The phenomenon of foreign aid began at the end of World War II and has survived the Cold War. How should the United States now spend its foreign aid to support its interests and values in the new century? In this study, Carol Lancaster takes a fresh look at all US foreign aid programs and asks whether their purposes, organization and management are appropriate to US interests and values in the world of the 21st century. Lancaster finds that US aid in the new century, if it is to be an effective tool of US foreign policy, needs to be transformed. Its purposes need to be refocused and its organization and management brought into line with those purposes. Those purposes include support for peace-making, addressing transnational issues, providing for humane concerns and responding to humanitarian emergencies. Traditional programs aimed at promoting development, democracy and economic and political transitions in former socialist countries will not disappear but they will have less priority than inthe past. These new sets of purposes, promoting both US interests and values abroad, also offer a policy paradigm around which a new political consensus can be created that will support US aid in the 21st century.Transforming Foreign Aid should be of particular interest to professors, students, and researchers of international affairs, foreign policy, political science, and political economy.

Assessing Aid determines that the effectiveness of aid is not decided by the amount received but rather the institutional and policy environment into which it is accepted. It examines how development assistance can be more effective at reducing global poverty and gives five mainrecommendations for making aid more effective: targeting financial aid to poor countries with good policies and strong economic management; providing policy-based aid to demonstrated reformers; using simpler instruments to transfer resources to countries with sound management; focusing projects oncreating and transmitting knowledge and capacity; and rethinking the internal incentives of aid agencies.

NOW IN ITS SIXTH ANNUAL EDITION, The Reality of Aid has for the first time analysed the 'fair share' of bilateral aid for basic social services basic education, basic health, reproductive health, nutrition, clean water and sanitation - that should come from each donor; an analysis which shows only two donors meeting their fair share and the G7 nations (Canada, France, Germany, Italy, Japan, UK, US) falling behind by over US$5 billion. This year and next, The Reality of Aid focuses on basic education, as a right and not a privilege, and its role in development cooperation and poverty elimination. A key feature of The Reality of Aid 1998/1999 is the ten chapters offering analysis of development cooperation from the perspective of southern NGOs. Many of these focus on basic education and raise issues around transparency, gender and civil society. 'If policies were programmes and promises were dollars, The Reality of Aid could report great progress on the road to eradicating global poverty this year. But at a time when donors acknowledge that ending poverty is possible, it seems that commitments are being offered instead of resources and real change.' From the Summary Part I presents a useful Summary, highlighting the steps that donors could take now to make progress towards poverty eradication, and reviews the trends in development cooperation, debt relief measures targeted towards the new millennium and commitment to the goal of ensuring basic education for all. Part II gives a full report on the overseas aid performance of OECD country aid donors and the European Union over the last year. Part III sets out a Southern perspective on development cooperation. Part IV provides 'at a glance' comparisons of donors' aid outlook and commitment to development cooperation in the 21st Century, poverty eradication, gender and public support. Part V contains handy reference material. Throughout the book, information is presented in easily interpreted diagrams and graphs. The Reality of Aid has established itself as a unique source of independent evaluation and comment on aid policies and development. It is indispensable for all in the field, whether in the official or voluntary sectors. 'Indispensable ... it gives you most of the hard facts you need to know about the major issues' New Internationalist 'The most comprehensive and rigorous independent analysis of the aid and development policies of the world's wealthiest nations ... Essential reading' Charity World 'The Reality of Aid remains an essential purchase by the libraries of development institutions and an invaluable reference for development practitioners' Development & Change 'A reliable 'watchdog' for anyone interested in this important aspect of international relations' ORBIT 'An accessible reference ... [it] encompasses many key issues and stimulates further research' Commonwealth & Comparative Politics Originally published in 1998

NOW IN ITS SEVENTH ANNUAL EDITION, The Reality of Aid 2000 looks at how the performance of OECD donor countries on aid and development cooperation has matched up to the challenge of eliminating absolute poverty. The report charts some improvements at the level of donor policy and rhetoric. But its stark conclusion is that the potential of aid to combat poverty is constantly undermined by governments, both North and South, who fail to address the extreme inequalities of income and the structural, social and political injustices that entrench people in poverty. Part I of The Reality of Aid 2000 presents an overview of poverty in the current global context and an analysis of recent trends in aid - looking particularly at basic education. In Part II, chapters by experts from NGOs in OECD countries and the European Union show how donor aid administrations approach poverty - and highlight the weakness of political commitment in the North to the needs of the poor. Part III sets out Southern perspectives on development cooperation. Part IV provides 'at a glance' comparisons of donors' aid outlook and commitment to development cooperation in the 21st century, poverty eradication, gender and public support. Throughout the book, information is presented in easily interpreted diagrams and graphs. The Reality of Aid has established itself as a unique source of independent evaluation and comment on aid policies and development. It is indispensable for all in the field, whether in the official or voluntary sectors, providing a regular reality check on just how much the international community is doing to realise the achievable goal of eliminating poverty. 'Indispensable ... it gives you most of the hard facts you need to know about the major issues' Nett-' Internationalist 'The most comprehensive and rigorous independent analysis of the aid and development policies of the world's wealthiest nations ... Essential reading' Charity World 'The Reality of Aid remains an essential purchase by the libraries of development institutions and an invaluable reference for development practitioners' Development & Change 'A reliable 'watchdog' for anyone interested in this important aspect of international relations' ORBIT 'An accessible reference ... [it] encompasses many key issues and stimulates further research' Commonwealth & Comparative Politics Originally published in 1999

Originally published in 1981, this book analyses how development aid works in practice. It presents a critique of the practice of foreign aid, analyses the aid process, who controls it and investigates the exercise of leverage by donors. It examines the interests of the different parties involved, identifies problems and suggests alternatives which may allow the aid process to operate more effectively in the interest of those who need it.

Several development proponents, nongovernmental organizations (NGOs), and policymakers are pressing the 111th Congress to reform U.S. foreign aid capabilities to better address 21st Century development needs and national security challenges. Over the past nearly 50 years, the legislative foundation for U.S. foreign aid has evolved largely by amending the Foreign Assistance Act of 1961 (P.L. 87-195), the primary statutory basis for U.S. foreign aid programs, or enacting separate freestanding laws to reflect specific U.S. foreign policy interests. Many describe U.S. aid programs as fragmented, cumbersome, and not finely tuned to address the existing needs and U.S. national security interests. Lack of a comprehensive congressional reauthorization of foreign aid for about half of those fifty years further compounds the perceived weakness of U.S. aid programs and statutes. The current structure of U.S. foreign aid entities, as well as implementation and follow-up monitoring of the effectiveness of aid programs, have come under increasing scrutiny in recent years. Criticisms include a lack of focus and coherence overall, too many agencies involved in delivering aid with inadequate coordination or leadership, lack of flexibility, responsiveness and transparency of aid programs, and a perceived lack of progress in some countries that have been aid recipients for decades. Over the last decade, a number of observers have expressed a growing concern about the increasing involvement of the Department of Defense in foreign aid activities.

Spending on U.S. foreign affairs, which constitutes only about one percent of the federal budget, is being sharply reduced. Under the President's 1996 budget plan, it will decline by just as great a percentage as defense between 1990 and 2002—and by substantially more than defense over the 1980-2002 period. No other major category of federal spending will undergo a real cut over either time period. The shrinking budget, totaling about $19 billion in 1997, will still have to fund the State Department, international broadcasting and educational exchanges, trade subsidies and investment guarantees for U.S. business overseas; United Nations operations including peacekeeping, and all types of foreign assistance. In this book, O'Hanlon and Graham focus primarily on this last component of international spending. Specifically, they analyze U.S. official development assistance (ODA) to poor countries. The authors place U.S. ODA in a broad historical, international, and economic perspective. They then recommend an alternative approach to ODA for the United States as well as other donors. They favor continuing to provide humanitarian and grass-roots aid to most poor countries, but providing ODA to promote macroeconomic growth only to those countries that maintain coherent, market-oriented economic policy frameworks. The authors argue that to provide effective aid, as well as to maintain U.S. leadership in world affairs, net resources for ODA and the international account need to increase only modestly.