THE U.S. FOREIGN AID POLICY IN THE NINETIES

This article assesses the reorientation of United States foreign assistance as the Cold War ended. It traces the shift from geostrategic patronage toward themes of market transition, democratic governance and poverty reduction, while noting the persistence of security-linked funding in key theaters. The analysis unpacks institutional roles across USAID, the State Department and the multilateral development banks, explaining how new earmarks, conditionalities and evaluation metrics changed programming. It reviews early lessons from Eastern Europe’s transitions, sector reforms in health and education, and the rise of NGO partnerships and microfinance. The article contends that credible aid requires country ownership, policy coherence and results frameworks that avoid perverse incentives. It concludes with implications for aid effectiveness in fragile states and for alignment with trade, migration and climate policy.

The body opens with budgetary and legislative context—appropriations, authorizing statutes and the proliferation of objectives that complicated prioritization. A section on democracy assistance examines electoral support, independent media and rule-of-law initiatives, weighing impact against backlash risks. Economic growth programming is analyzed through privatization advice, SME support and financial-sector regulation, highlighting sequencing errors and institutional capacity gaps. Human development discussions cover immunization, primary education and women’s health, stressing local systems strengthening over parallel delivery. The paper evaluates monitoring and evaluation innovations—logical frameworks, baseline surveys and cost-effectiveness analysis—and the tensions between accountability to taxpayers and adaptive learning. Case material illustrates success factors: stable reform coalitions, transparent procurement and cross-donor coordination. The conclusion proposes a balanced agenda that links aid to trade access, remittance facilitation and climate adaptation, positioning assistance as one pillar of a broader international economic strategy.