Development Assistance and Exports: The Case of the United States
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The relationship of development assistance and exports has been a controversial subject in
recent years. U.S. public organizations feel that development assistance, particularly for research,
while intended primarily and immediately to encourage economic development in low-income
nations, will also help increase the effective demand for agricultural exports. Some commodityoriented
U.S. farm groups, on the other hand, see assistance primarily in terms of leading to
increased competition for exports of their product. They would have the U.S.A. provide less international
support for agricultural development and they have had some influence. While there
has been considerable debate on the subject, this has not yet resulted in the development of an
enlightened national policy. The paper attempts to sort out the facts and perceptions that have
led to this situation and to provide some policy suggestions. Two important needs are for: (a)
greater public understanding, and (b) strengthened domestic research and improved linkages
between domestic and international research activities. Paradoxically, the latter point tends to be
overlooked by some of the farm groups but is essential if the U.S. is to remain competitive in what
is likely to become a more open international market in the future.