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B-133359 1 (1973-03-01)

handle is hein.gao/gaobaaeit0001 and id is 1 raw text is: 6 V COMPTROLLER GENERAL REPORT TO THE CONGRi DIGEST WHY THE REVIEW WAS This is an unclassified digest furnished in li a report containing classified security information. . 'S BETTER USE COULD BE MADE OF ESS U.S. ASSISTANCE AND OTHER SUPPORT TO THE PHILIPPINES B-133359 I! III h I I 113 MADE FINDINGS AND CONCLUSIONS The General Accounting Office (GAO) made this review of US.ass tM and ~pther,i oxfpws oL jt,_do1rs. to the Phipjnsas part of its con- tinuing efforts to assist the Con- gress in its oversight of U.S. for- eign assistance programs and related activities in the recipient nations. The United States long has been in- volved with the affairs of the Phil- ippines; however, increased Filipino feelings of nationalism suggest that significant changes soon may be re- quired in the handling of United States-Philippine relations. Direct U.S. economic and military assistance programs to the Philip- pines have averaged $68 million an- nually in the years 1965 through 1971. However, total U.S. dollar inflows to the Philippines resulting from U.S. Government activities have averaged about $388 million annually. This is due to less visible, but larger forms of dollar flows, such as sugar premium payments, favorable tariff agreements, and U.S. military spending. These latter means stem from pro- grams of the U.S. Government serving specific U.S. interests and are not, necessarily, directed to the orderly development of Philippine economy. Numerous departments and agencies of the U.S. Government administer U.S. programs in the Philippines. (See pp. 5 and 9.) :! - - ia The United States has achieved its primary objective in the Philip- pines, which is military in nature. However, the objectives of its pro- grams for economic and social growth have been plagued with serious prob- lems. These problems will have a decided impact on future United States-Philippine relations. (See p. 11.) The World Bank has reported that long-term growth prospects of the Philippines appear good; however, continued development depends on the correction of serious problems existing in debt servicing, income distribution, tax legislation and collection, governmental reform, and population growth. Subsequently, the Philippines suffered a major flood disaster in July 1972. The full effects from this disaster on growth prospects are not yet de- termined. (See p. 57.) U.S. economic assistance programs-- based on the criterion of self-help-- have achieved limited success in bringing about much needed social and economic changes in the Philip- pines. The influence of these pro- grams has been lessened by inade- quate Philippine Government support. GAO found that: --The Agency for International De- velopment has continued over the years to plan technical assistance grant and direct loan programs on MARCH 2. 1 973 pqs:23)

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