Summary: The U.S. Government Accountability Office reports on the results of over two decades worth of U.S. foreign aid allotted to the Federated States of Micronesia and the Republic of the Marshall Islands, concluding that lack of accountability on both sides led to little progress in achieving financial independence and both nations are still highly dependent on U.S. funds.
Topic: Should the state department of the Obama Administration double foreign aid for Africa?
Category: Government Institutional
What Is It? Government Testimony from the U.S. Government Accountability Office
Title: Foreign Assistance: U.S. Funds to two Micronesian Nations Had Little Impact on Economic Development and Accountability Over Funds Was Limited
Publication Information: U.S. Government Accountability Office, June 28, 2000
Author: Susan Westin, Associate Director, International Relations and Trade Issues, National Security and International Affairs Division of U.S. government.
Location: http://www.gao.gov/products/T-NSIAD/RCED-00-227
Accessed: February 13, 2009
Support:
• Government Report: Foreign Relations: Better Accountability Needed Over U.S. Assistance to Micronesia and the Marshall Islands
• Financial Report: FSM and RMI Compact Expenditures by Fund Type as a Percentage of Total Compact Expenditures, Fiscal Years 1987-98
• Graph titled RMI Debt Service as a Percentage of Annual Compact Expenditures, Fiscal Years 1987-98
• Graph titled FSM Dependence on U.S. Assistance, Fiscal Years 1987-98
• Graph titled RMI Dependence on U.S. Assistance, Fiscal Years 1987-98
Westin uses numerous governmental reports and graphs, including those listed above, as support in crafting her testimony that little progress has been made in both the Federated States of Micronesia (FSM) and the Republic of the Marshall Islands (RMI). She uses these documents to prove that, although the standards of living in FSM and RMI are significantly higher since receiving aid, both nations are still highly dependent on U.S. funds to maintain those higher standards and neither is any closer to financial independence.
Audience and Agenda: Originally, this was a testimony before the Subcommittee on Asia and the Pacific, Committee on International Relations, House of Representatives. It was a highly specific and specialized group of people who, for the most part, already knew the background of the case and all the information necessary to make sense of this information. It’s tailored to fit this audience, using some jargon specific to this section of the government. The United States Congress published and funded it to uphold the government’s transparency and accountability. This aspect of congress, The GAO, acts as the government watchdog, keeping track and reporting how the government uses taxpayer’s dollars.
Usefulness: This report provides commentary on the effectiveness of certain kinds of foreign aid and whether or not the policies that the U.S. is employing currently are effective. This is more of a specific case study, but it could be used to lend support to the argument that without proper accountability and responsible allocation of funds from both the donor and the recipient, foreign aid can end up rendering a nation dependent on outside aid.
Works Cited:
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