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Questions & Answers

Why are we asking for a $5 billion increase for poverty-focused development assistance?  Even when we have success getting increases, aren't they usually much smaller?

In recent years, Congress has been approving increases of $1 billion to $2 billion in the foreign aid budget for programs that invest in things like education, agriculture, nutrition, health and clean water.  But these increases, though welcome, are not enough.  The United States needs to increase this kind of assistance by at least $5 billion a year because we are not on track to meet the goals and fulfill the promises our country and other countries have made in recent years.

Now, the United States spends close to $14 billion total in poverty-focused development assistance.  To contribute our share to achieve the Millennium Development Goals, the United States should be spending three times what we are now contributing.  This increase would equal about 1 percent more of the total U.S. federal budget.

Our elected representatives must hear from us—their constituents—to know that we expect them to meet these commitments to those who need it the most.

Are other wealthy governments doing their parts to achieve the Millennium Development Goals?

All donor countries must improve in order to reach the Millennium Development Goals by 2015.  The United States gives the largest total amount of official development assistance. But when aid is considered as a percentage of the country's wealth, the United States is near the bottom of the list of rich, industrialized countries, giving only .17 percent of its Gross National Product (GNP).  Countries like Sweden, Norway and the Netherlands give more than .8 percent of their GNP in official development assistance. 

How much of U.S. foreign assistance is wasted by corruption in poor countries?

Corruption remains a concern in many developing countries, though many have made strides in protecting aid from misdirection. Poverty-focused development assistance helps countries build and strengthen those institutions that combat corruption, such as law enforcement, improved accounting procedures, and judicial review process. In those countries where government corruption is a problem, aid agencies work through experienced non-governmental organizations. 

New assistance programs, such as the Millennium Challenge Account, require a strong anti-corruption record. In order to qualify for this special program, countries must have taken steps to show their commitment to fighting corruption.  These steps include passing strong anti-corruption laws, strengthening oversight institutions, opening up the public policy-making process to greater public scrutiny, and increasing corruption-related investigations and prosecutions.

The United States has spent a lot of money in foreign aid but things don't seem to be getting better.  Are our contributions really helping?

Poverty-focused development assistance is making a dramatic impact in people's lives every day. Worldwide, the number of people in developing countries living on less than $1 a day has fallen to 980 million—270 million less than in 1990.  More children are in school, more people have access to clean water and sanitation, and more children are living past the age of five. With the help of U.S. funding, 1 million people in developing countries now have access to HIV drugs. Diseases such as polio and smallpox have been eliminated as major killers of children in poor countries. We are making a difference.

Some have argued that despite 50 years of aid, conditions in many countries have not improved. However, over most of this timeframe, foreign assistance was not spent solely on poverty reduction. Donors and poverty-fighting organizations have learned many lessons over the past several decades on how to make development assistance more effective. Development dollars are better targeted to proven interventions and to the people who need them. Today, we are seeing greater achievements as a result.

Does foreign aid create dependency?

Foreign aid can help individuals build self-sufficiency and provide for their families. Through investments in agricultural production, job training, educational opportunities, improved infrastructure and access to markets, poverty-focused development assistance provides long-term, sustainable solutions to poverty that once seemed intractable. Sustainable development—the kind that responds directly to the needs of communities and includes them as active participants—creates stability and real progress.  

By empowering citizens in developing countries, we teach them to hold their own governments accountable for meeting the needs of the most vulnerable people. International donors and organizations must continue to encourage good practices, such as including local communities in decision-making processes, to help ensure that the results of development programs will last long after the program ends.