Substantial changes have occurred in the activities and programs
affecting development in Third World countries in the last decade.
These changes and the increasing role of non-aid agencies in
development activities have caused authority for development
programs to be widely dispersed among Federal Government agencies
and committees. The International Development Cooperation Agency
(IDCA) was created to improve coordination of these activities. The
three major changes which particularly affect the coordination
problem are: (1) a shift from U.S. bilateral aid toward more
emphasis on multilateral assistance; (2) a shift from program
assistance and integrated country planning toward more emphasis on
project assistance; and (3) the increasing importance of non-aid
activities such as trade and foreign investment. The creation of
IDCA represents progress toward establishing an independent
coordinator, but it is uncertain whether the agency can establish a
separate, independent identity. The agency's director has the lead
responsibility for the U.S. development policy in specified
international organizations, and for development policy toward
multilateral banks. However, its creation does not significantly
affect the Government's ability to coordinate policies and programs
on a country rather than a project basis nor does it affect much
the development coordinator's ability to influence non-aid issues.
While the new organizational arrangements could effect some
improvement in the authority of the development coordinator, his
power will remain limited. Therefore, the quality of the
performance of the Agency Director and his staff will be critical
to the success of the organization.
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