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Foreign Aid
Overview

United States aid to developing countries is generally measured solely in terms of the official development assistance that the government provides to the U.S. Agency for International Development (USAID), Peace Corps, multilateral institutions, and certain programs sponsored by the State Department and Department of Defense. But the U.S. government also provides considerable resources for international assistance not included in measures of official development assistance. Moreover, many nongovernment U.S. sources-including foundations, corporations, private and voluntary organizations, colleges and universities, religious organizations, and individuals-provide direct assistance to people in developing countries. All these sources must be taken into account to plan aid effectively.

Better understanding of private giving is needed to accurately assess American generosity toward poor people overseas. Such knowledge can also help USAID use private funds to leverage additional official development assistance. Private investment and lending have transformed the economies of many developing countries over the past 20 years. Less attention has been paid to private philanthropy-but it too plays an important role. Indeed, this "silent" private financing has become the dominant expression of U.S. concern for poor people abroad.

- Abridged from State Dept. Publications and other U.S. government materials
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