ABSTRACT

This paper is concerned with understanding the conditions under which effective U.S. aid can be rendered to Central and Eastern Europe. Because the story of grant aid to the region is as much a story of political and social impact as it is of economic impact, the paper first examines the social and political features of aid, its historical context, and changing recipients’ responses to it. Second, it reviews U.S. assistance agendas. To explore the components of a successful aid program, various programs are examined for overall strategy and timeframes, location of decision-making, the nature of contracting procedures, degree of recipient input, donor relationships with recipient governments, the degree of donor concentration on “independent and “private” sectors, and cooperation and coordination with other donors. Finally, two technical assistance approaches are reviewed, plus two models for aiding the “private” or “independent” sector that have been followed in U.S. aid efforts in the region.