Lanterna Rally

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Published: 1995

Total Pages: 79

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In response to budget constraints and concerns about effectiveness, major donors, including the United States, are reassessing their foreign aid programs and strategies. The method of delivery is one of the prime areas being reexamined. While most U.S. foreign aid is still delivered on a government-to-government basis, the current administration has pledged to increase the percentage of U.S. assistance being channeled through nongovernmental organizations over the next 5 years. Some proposals in the Congress have recommended that U.S. development assistance be channeled through nongovernmental organizations, including private voluntary organizations (PVO). Support for a greater PVO role in delivering assistance seems to stem from (1) general disappointment with the results of over 40 years of government-to-government assistance and (2) a perception that private organizations are better able to identify development needs and deliver help. At the request of the former Chairman of the House Foreign Affairs Committee, GAO undertook a study to examine some of the questions and issues that policymakers may want to consider as they debate the future role of PVOs in delivering U.S. development assistance. Specifically, this report provides an analysis of (1) PVOs' role in delivering U.S. foreign assistance and potential issues and implications of increasing PVOs' role in delivering assistance, including accountability issues; (2) 26 PVO projects in 8 countries in 4 geographic regions and whether they were achieving their objectives; and (3) the extent to which U.S. PVOs are dependent on U.S. government funding.