Other developed countries also provide development assistance.
However, if we include food aid in economic aid, the United States
was the source of about one-half of world development assistance.
Economic aid of other countries is mainly in the form of loans
and relatively little in the form of grants. However, loans account
for an increasing share of U. S. aid commitments. They accounted
for 62 percent of the total in fiscal year 1964 as compared with
30 percent in fiscal year 1961. The U. S. suppliers’ share of aid com-
modity purchases has increased steadily from about 40 percent in
fiscal year 1960 to 87 percent in fiscal year 1964. Emphasis has
been placed upon purchases in this country because of our balance-
of-payment problems. But it is important to note that other economic
aid as well as food aid has helped generate economic activity in the
United States.
FUTURE OF FOOD AID
What about the future of food aid? Can the developing countries
effectively use larger amounts? The total value of agricultural com-
modity aid has not changed much in the last seven or eight years.
It totaled 1.4 billion dollars in 1956 and 2 billion dollars in 1957
as compared with 1.5 billion dollars in 1963 and 1.6 billion dollars
in 1964. Of course, there have been important reductions in some
countries and increases in others.
Marketing and distribution facilities limit the amount of food aid
that can be used effectively in most countries. This is true of program
aid designed to meet general food needs or shortages, as well as
project aid used to carry out specific development projects. Program
aid accounts for most of the 14 billion dollars of U. S. agricultural
commodity aid during the 1955-64 period. Food used as wages for
workers on development projects accounts for a small part of the
total. Title II of P. L. 480, which provides grants of food for disaster
relief and other assistance including child feeding programs and food
used as wages for workers on development projects, accounted for
only 1.1 billion dollars or about 8 percent of the total.
Additional food aid probably can be used effectively for re-
source development projects in some countries. But careful planning
of projects is required if they are to be successful. Administrative
arrangements need to be made for employing workers and for pay-
ing them with food. In most instances, technical assistance needs to
accompany food aid used directly for resource development projects.
Moreover, workers cannot be paid entirely with food. Other ma-
terials, including tools and equipment, also are required to construct
roads, schools, and storage and marketing facilities or to carry out
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