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NSIAD-85-105 1 (1985-08-07)

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BY THE U.S. GENERAL ACCOUNTING OFFICE


Report To The

Honorable George E. Brown, Jr.

House Of Representatives







Financial And Management Improvements

Needed In The Food For Development Program




Title III of the Agricultural Trade Development and
Assistance Act provides developing countries with
incentives for improving their agricultural productivity.
If recipients use local currencies generated from the
sales of U.S.-financed commodities for agreed pur-
poses, repayment obligations are forgiven.

By the end of fiscal year 1984, the value of U.S.-
financed title III commodities totaled about $680 mil-
lion, of which $335.7 million had been forgiven.

This report notes progress in achieving some of title
Ill's objectives and discusses problems in managing
local currencies, implementing development projects,
and adopting policy reforms. GAO believes that with
enough trained personnel and Agency for International
Development assistance, host country institutions can
overcome many of these problems.

GAO makes recommendations for addressing these
problems to the Secretary of Agriculture and the
Administrator, Agency for International Development.






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