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By 1960, public support for foreign assistance programs had dwindled, thanks in part to the novel, by William J.Lederer and Eugene Burdick, which described America’s arrogance, incompetence and corruption in Southeast Asia, and how the United States was losing the struggle against Communism.But under the administration of President George W. With control of USAID now in the hands of the State Department, USAID’s work in development joins diplomacy and defense as one of three key pieces of the nation’s foreign policy apparatus.USAID claims to “promote peace and stability by fostering economic growth, protecting human health, providing emergency humanitarian assistance, and enhancing democracy in developing countries,” but many critics have argued that some of the agency’s programs have been used by the White House to achieve political goals in countries whose governments are antagonistic toward the U. The agency has also been embroiled in numerous controversies, including extensive problems pertaining to its use of contractors. officials saw how ravaged Western Europe was in the wake of the six-year conflict, American foreign policy began to shift dramatically on the issue of foreign aid. The goal of the Marshall Plan was to stabilize Europe’s economies to prevent Soviet-backed socialist movements from taking hold in key countries like France, Great Britain, and then West Germany.In 1971, the Senate rejected a foreign assistance bill authorizing funds for fiscal years 19.The defeat of the 1971 bill represented the first time that either house of Congress had rejected a foreign aid authorization since before the Marshall Plan.The new focus of development was to achieve economic growth and political stability in the developing world to combat both Communism and the threat of instability arising from poverty.One of the first programs undertaken by USAID was the Alliance for Progress.

Unhappy with the first Mutual Security Act, Congress adopted another in 1954, which blended development assistance, security assistance, a discretionary contingency fund, and guarantees for private investments into one program.Prior to the outbreak of World War II, foreign assistance was not a prime concern of the United States, whose isolationist tendencies prevented policymakers from involving themselves with the status of economic conditions in other countries. Concerned over the threat the Soviet Union posed in exploiting war-torn economies by promoting its socialist message, American officials decided to spearhead several important measures designed to rebuild and develop foreign economies that maintained the capitalist model. These two permanent organizations were set up to provide foreign loans to countries seeking assistance in developing their economies. Although the Marshall Plan ended on June 30, 1951, U. officials were still afraid that foreign governments might fall under the rule of Communism.First, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (the World Bank) were officially created on December 27, 1945, by leaders of the U. A more short-term, emergency plan launched by the United States in April 1948 was the Economic Cooperation Act, otherwise known as the Marshall Plan (named after George C. Motivated by this worry, Congress authorized new programs designed to unite military and economic programs with technical assistance.Set up in the fall of 1960 by the Act of Bogota and confirmed by the Charter of Punta del Este (Uruguay) in early 1961, the alliance was a hemisphere-wide commitment of funds and effort to develop the nations of the Americas.The alliance became the basis for USAID’s programs in Latin America throughout the 1960s.