U.S. Foreign Aid and Foreign Policy: Building Strong Relationships by Doing It Right!

Foreign aid policies cannot be more successful than their implementation, which inherently involves people and institutions. But people have their own interests and cultural frameworks, and institutions are inevitably grounded in culture and politics. Inattention to the agendas of individuals involved on both sides of foreign aid to Central and Eastern Europe played a major role in its shortcomings. A recent court decision holding two Harvard university scholars guilty of defrauding the U.S. government while running a flagship project to reform the Russian economy underscores the pitfalls in outsourcing traditional functions of government to small, well-connected groups that are not fully accountable in serving the public interest. Drawing on the author’s experience studying informal systems and networks over several decades, this article illuminates the importance of foreign policy and aid relationshipsFhow they are set up, who wins and who loses, and how their lack of accountability can contribute to the derailment of nation-building and constructive relations among countries.