THIRD WORLD URBANIZATION AND AMERICAN FOREIGN AID POLICY: DEVELOPMENT ASSISTANCE IN THE 1990s

Over the next decade, the demographic and economic characteristics of countries to which the United States government provides technical and financial assistance for economic development will change substantially. Rapid urban population growth, the expanding role of cities and towns in national economies, continued migration of population from rural to urban areas, explosive growth in the size of the labor force, and shifts in the occupations of the labor force from agriculture to manufacturing and ser- vices will require a reorientation of American development assistance. Yet, program objectives and budget allocations of the U.S. foreign aid program fail to reflect these changes in the characteristics of its clientele. The US. Agency for International Development lacks an overt strategy for coping with urbanization in developing nations. Without an urban strategy, the American foreign aid program is likely to incur increasing opportunity costs and fail to address critical problems arising from fundamental shifts in the economic and social structure of developing countries. Copyright 1989 by The Policy Studies Organization.