Financial Management Problems in Developing Countries Reduce the Impact of Assistance

Gao ID: NSIAD-85-19 November 5, 1984

GAO determined how the Agency for International Development (AID) and other major donor assistance agencies can better help to identify and meet the financial management training and technical assistance needs of aid recipients.

GAO found that AID and the other donors have not adopted policies or developed well-articulated and coordinated programs of assistance to improve host countries' financial management systems. The donors have not: (1) analyzed the constraints of financial management as they affect the main sectors of development; or (2) formulated specific policies and programs to address major problem areas. Further, the lack of personnel trained in basic accounting and related financial management functions has adversely affected development program performance in many of these countries.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Nancy R. Kingsbury Team: General Accounting Office: National Security and International Affairs Division Phone: (202) 512-4268


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