Public Law 480 Title I: Economic and Market Development Objectives Not
Met (Testimony, 08/03/94, GAO/T-GGD-94-191).

Through the Public Law 480 title I food aid program, U.S. agricultural
commodities are sold to developing countries on long-term credit at
below-market interest rates.  When this food aid legislation was enacted
in 1954, its objectives were to export large amounts of surplus U.S.
agricultural commodities and serve U.S. international policy interests.
Today, however, title I is less important in terms of reducing U.S.
agricultural surpluses and its share of U.S. agricultural exports and
world food aid has decreased significantly.  Although 1990 legislation
streamlined title I program management and simplified implementation
requirements overseas, the revisions did not improve the program's
ability to promote broad-based sustainable development and expand
markets for U.S. agricultural commodities. The program does move U.S.
agricultural commodities to foreign markets, but the title I program is
encumbered with multiple and sometimes competing objectives as well as
contradictory program requirements.  As now structured, the program
appears unable to significantly advance either the economic development
or market development objectives of the 1990 legislation.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-94-191
     TITLE:  Public Law 480 Title I: Economic and Market Development 
             Objectives Not Met
      DATE:  08/03/94
   SUBJECT:  International food programs
             Federal aid to foreign countries
             Foreign economic assistance
             International relations
             Food relief programs
             Agricultural assistance
             Developing countries
             Foreign aid programs
             Agency missions
             Program management
IDENTIFIER:  Persian Gulf War
             USDA Export Enhancement Program
             USDA Sunflowerseed Oil Assistance Program
             USDA Cottonseed Oil Assistance Program
             USDA Dairy Export Incentive Program
             USDA GSM-102 Program
             USDA GSM-103 Program
             USDA Market Promotion Program
             International Monetary Fund
             
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