Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region Page: 10 of 60
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with the FSM and the RMI includes sector grants and trust fund
contributions, in place of the financial transfers provided in the first 15
years of the Compact, to improve accountability for the use of funds.8
State concurred with our finding that the FSM, the RMI, and the United
States provided limited accountability over Compact expenditures from
1987 to 1998.9
Major Aid Donors From 1987 through 1999, the seven top donor countries and organizations
provided about $11 billion, or 93 percent, of all development assistance to
Provided About $11 help Pacific Island nations. The bilateral donors generally targeted their
Billion in Aid to assistance to a few recipients, while the multilateral donors distributed aid
more broadly to member nations in the region.o'
Pacific Island Nations
The Major Donors
Five bilateral donors-Australia, Japan, New Zealand, the United
Kingdom, and the United States-and two multilateral donors- the Asian
Development Bank (ADB) and the European Union (EU)-provided about
$11 billion in official development assistance to Pacific Island nations
between 1987 and 1999, according to our review of data from the OECD
and annual financial audits of the FSM, the RMI, and Palau. Figure 2 shows
the top donors and the amount of total assistance provided to the Pacific
region from 1987 through 1999.
8The United States has held four negotiating sessions with the FSM to discuss specific
9See Foreign Assistance: U.S. Funds to Two Micronesian Nations Had Little Impact on
Economic Development and Accountability Over Funds Was Limited
(GAO/T-NSIAD/RCED-00-227, June 28, 2000) and Foreign Assistance: U.S. Funds to Two
Micronesian Nations Had Little Impact on Economic Development (GAO/NSIAD-00-216,
Sept. 22, 2000). We reported that annual financial statements of the two countries did not
provide information on the final use of Compact funds because the Compact monies are
commingled with local revenues, and fund transfers are not tracked to the final use. The
financial data also do not include additional assistance, such as loans to the government or
individuals and scholarships to students.
lOther donors, such as China and Taiwan, are known to provide economic assistance, but
the amounts are not readily available or reported to the OECD. Also, the data on
development assistance levels do not include in-kind services, such as U.S. Postal Service
support to the FSM and the RMI.
GAO-01-808 Pacific Development Assistance Strategies
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United States. General Accounting Office. Foreign Assistance: Lessons Learned From Donors' Experiences in the Pacific Region, report, August 17, 2001; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc293232/m1/10/: accessed February 20, 2019), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.