NEW DIRECTIONS OR NOT - USAID IN LATIN-AMERICA

In 1973 the US Congress passed a resolution directing the Agency for International Development (USAID) to provide its economic aid to the poorest populations in the poorest countries. This paper studies whether the congressional initiative has been satisfied in US bilateral economic aid allocations to Latin America. We compare aid given before and after 1973 to Latin American countries as a function of four independent variables: child mortality; political stability; imports from the United States; and GDP per capita. The dependent variable is the percentage of all USAID Latin American loans and grants given to each country. Our results suggest that USAID has not followed the congressional directive. © 1990 Pergamon Press plc.