U.S. Foreign Assistance

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Vi Mh” America’s Heroes U.S. Foreign Assistance Leads The World (NAPSA)—The United States was already the leading donor of foreign aid to poor countries when President Bush asked Conegress for an additional $2.4 billion for Iraqi relief and reconstruction. With $11.48 billion budgeted in foreign aid in 2003 before the Iraq aid is included, U.S. development and humanitarian aid was more than 20 percent of all donoraid. The $11.43 billion in U.S. aid during 2001, the last year in which worldwide donor funding statistics are available, went to fund education, health, roads, democracy, water supply, trade, tourism and other activities aimed at bringing a higher standard of living to citizens of poor nations. Close behind the United States in foreign assistance was Japan, which gave $9.85 billion in 2001. The next four largest donors were Germany with $4.99 billion Britain with $4.58 billion France with $4.2 billion and The Netherlands with $3.17 billion. About $8.5 billion of the U.S. foreign assistance in 2001 was provided through the U.S. Agency for International Development and the rest provided through the World Bank and other international institutions which provide loans and grants to developing countries. U.S. foreign aid, which is approved by Congressafter extensive debate each year and then signed by the President, included in 2001 about $400 million for education, $800 million for population programs, $450 million for water and sanitation, $1.3 billion for government and civil society and $1 billion on other social services. The 2001 U.S. foreign aid budget also included $100 million on Whenit comesto U.S.foreign assistance, the U.S. Agencyfor International Development (USAID) is the straw thatstirs the drink. energy projects, $300 million on agriculture and $100 million on trade promotion. Another $1 billion went on food aid, includingrelief. Despite this quantity of aid, and the fact that it is the largest contribution by any single nation, critics have noted that the United States gives only one-tenth of one percent of the U.S. gross national income. That is far below the average contribution of all donor countries which was .37 of one percent of their annual income. The highest percentage contribution was by Denmark, which gave 1.03 per- cent of its incomein aid. Others note, however, that the United States spends more on defense than other donor countries combined and that the U.S. security umbrella has enabled other countries—both donors and developing countries—to reduce defense spending, invest in more productive activities and engage in prosperousinternational trade without fear of aggression.