With the end of the Cold War and of a period during which foreign assistance was motivated frequently by East-West security and political considerations, a debate has emerged over setting a new foreign aid rationale. The debate has included calls advocating a much more direct use of America foreign assistance to support U.S. commercial interests, especially for programs administered by the Agency for International Development (AID). Proponents assert that the active promotion of the U.S. trade position should be one of the top U.S. foreign policy interests and, therefore, the foreign aid program should be used on behalf of that purpose. They argue that the United States should increase assistance in the form of capital projects that can provide opportunities for American exporters, reduce cash transfer aid that in some cases is spent on non-U.S. products, and strengthen "Buy America" provisions in foreign aid laws.
President Clinton released details of his Conventional Arms Transfer Policy on February 17, 1995, which are embodied in Presidential Decision Directive 34 (PDD-34). The President's action followed several months of internal debate and discussion by the Clinton Administration, the first detailed examination of conventional arms transfer policy since the Cold War's end.
This paper shows how much the United States has contributed to these international agencies in recent years. It also shows how much the international agencies budget (and the source of those funds) for their administrative expenses and their operational budgets. This report will be updated periodically.
In fiscal year 1994, the new states of the former Soviet Union became collectively the second largest recipient of U.S. foreign assistance made available from all sources. Whether and how the assistance program is helping to bring about democratic systems and free market economies is increasingly a question of interest to Congress and the public at large.
U.S. aid and arms sales to Pakistan generally had been prohibited since October 1990 because the President could not make a required annual certification to Congress under Section 620E(e) of the Foreign Assistance Act, the so-called "Pressler Amendment," that Pakistan did not possess a nuclear explosive device. However, on February 12, 1996, the President signed into law the Foreign Operations Appropriations Act for FY1996, which includes provisions that significantly relax previous restrictions on U.S. aid to Pakistan.
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