Aid & Eastern Europe
To the Editor:
In his article, “How Not to Aid Eastern Europe” [November 1991], Nicholas N. Eberstadt makes some good points about foreign-aid mistakes of the past. Unfortunately, his article is itself a thing of the past. The entire approach of the Agency for International Development (AID) in Central and Eastern Europe is radically different from the development projects of the 1970′s and early 80′s. Mr. Eberstadt mentions only three projects out of some 150 (which represent less than 10 percent of the funding) as typical of the entire program. This is not true. Moreover, he charges that there is little in the record to suggest that any projects contribute to economic liberalization or development. This is also not true.
Let’s look at the record. Let’s judge these three examples, not by whether they are “old-” or “new-”style assistance but by whether they fit Mr. Eberstadt’s foreign-aid criteria of promoting investment, developing a better business climate, and helping health and human-capital development.
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