ABSTRACT

Development assistance spending by the United States has expanded rapidly since the 2001 terrorist attacks. As a share of GDP, U.S. official development assistance (ODA) has doubled during this time from 0.12 percent to 0.22 percent of GDP. In proportionate terms, the United States still provides less development assistance than most industrialized countrieswhich average commitments of 0.33 percent of GDP.1 Nonetheless, with annual outlays of roughly $27.6 billion,2 it is the biggest bilateral donor. Moreover, to a greater extent than other donors, U.S. foreign assistance encompasses all developing regions-Latin America, Africa, the Middle East, South Asia, and East Asia. The United States also remains by far the single largest shareholder in both the World Bank and the IMF, at roughly 17 percent. Given the level of its assistance and its position on the world stage, the United States carries substantial influence in setting the direction and priorities in global efforts to promote development and democracy. We

therefore focus our bilateral policy recommendations on actions that can be taken by the United States. However, we believe they are also broadly applicable to other bilateral donors.