Development assistance and exports: the case of the United States

Cummings, R.W. Jr; Dalrymple, D.G.

Development assistance and exports: the case of the United States

1989

Cummings, R.W. Jr | Dalrymple, D.G.

The relationship of development assistance and exports has been a controversial subject in recent years. U.S. public organizations feel that developmentassistance, particularly for research, while intended primarily and immediately to encourage economic development in low-income nations, will also help increase the effective demand foragricultural exports. Some commodity-oriented U.S. farm groups, on the other hand, seeassistance primarily in terms of leading to increased competition for exports of their product. They wouldhave the U.S.A. provide less international support for agricultural development and they have had someinfluence. While there has been considerable debate on the subject, this has not yetresulted in the development of an enlightened national policy. The paper attempts to sort out thefacts 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 domesticresearch 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 theU.S. is to remain competitive in what is likely to become a more open international market in thefuture.

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