Time-Critical Aid: Questionable Use of Disaster Assistance Funds for Peru

摘要

The report reviews U.S. disaster reconstruction assistance provided to Bolivia, Ecuador, and Peru in response to the effects of the weather phenomenon called El Nino in 1982-83. The Agency for International Development (AID) provided the government of Peru with $60 million in two equal cash transfers from the international disaster assistance account for balance-of-payments purposes. This represents a departure from the normal use of disaster assistance funds, and the authors believe AID's use of the funds for balance-of-payments purposes is questionable. During 1983, AID developed a proposal for a $60-million, balance-of-payment loan from the Economic Support Funds to establish a private sector working capital fund within the system of the Central Reserve Bank of Peru. But economic support funds were not available for programs in Peru and this proposal was not approved within the executive branch.