Policy Proposal

Transforming U.S. Foreign Aid

History of U.S. Foreign Aid
 Decline in Foreign Assistance
70

60

50

40

30

20

10

Foreign Aid Spending Since 1946 in billions of dollars adjusted for inflation
 Where the Money Goes
Political aid to help
protect U .S. security and
economic interests
Military aid to help friends
25% of the U .S acquire U .S.
equipment and training
29% Development aid to help
stabilize developing
countries
23% Humanitarian aid for
3% 10% disaster relief and refugees
10%
Multilateral aid for
developmental projects
aided by other countries
Non-emergency food aid
consisting of U .S. crops
and training
2000-2001 GNP Percentage Figures
1.2

1 % of GNP in 2000
% of GNP in 2001
0.8

0.6

0.4

0.2

0
USA JAP GER UK DEN NOR LUX
 2000-2001 GNP Contributions
Figures in millions

LUX

NOR Contribution in 2001

DEN Contribution in 2000

UK
GER

JAP

USA

0 2000 4000 6000 8000 10000 12000 14000

Policy Options
 First Policy Option

Increase foreign aid by simultaneously

increasing Peace Corp budget and
percentage of student loan forgiveness.
 Second Policy Option

Create Foreign Aid Direct Human

Resources Department to oversee
development projects with governmental
bilateral aid.
 Third Policy Option

Create a U.S. Educational Grant for

International Development and an
Oversight Committee.
Policy Proposal
Creation of USEGID
Policy Points
 What
•Creation of USEGID Oversight Committee
within U.S. Department of State
U n ite d S ta te s D e p a rtm e n t o f S ta te

In te r n a tio n a l A ffa ir s - F o r e ig n A ssista n c e

U S E G ID O v e r v ie w a n d M a n a g e m e n t C o m m itte e

U .S . E d u c a t io n a l G r a n t fo r I n t e r n a t io n a l D e v e lo p m e n t
 Why

•Governments compete based on

how they will implement and put
to use students’ expertise for
national development.
 Who and from Where

•100 students chosen from 15 LDC’s each.

 How

•Student must complete studies

and work for native government
sponsored development program.
 Projected Costs
In millions of USD
300
300

250

• Tuition and Lodging for 200

students 150

• Yearly operational cost 100

including salaries, travel, 50

45

and office expenditures 0

5

Tuition
Lodging
Opera tion

Tuition Lodging Operation

 Proposed Benefits
1. Would not incur 4. More direct and
further taxation on sustainable form of
American citizens developmental aid
2. Would not detract 5. Less opportunities for
from national security mismanagement of
budgets funds
3. Includes failsafe 6. Parallel to U.S.
clause for retrieval of objective of sustainable
wasted funds development