US cuts aid to Africa in 1995.


Under the Clinton administration's proposed 1995 budget, Africa is to receive about 2% less in bilateral aid in 1995 than in 1994. The 1995 fiscal year begins in October 1994.

The US Department of State has issued a breakdown that shows how more than $10bn in "international affairs spending authority" is to be divided by region and recipient country The budget for bilateral programmes for fiscal 1995 is 10.46bn, down by 9.1% from 1994's $11.51bn.

Africa's continental bilateral total also falls, from $986.61 m in 1994 to $967.78m, for a decline of 2%.

On the other hand, spending levels rise for Latin America, Asia (except South Asia) and the Middle East.

The State Department is quick to point out that in the case of Africa, the decline in bilateral aid is "offset by substantial increases in support for multilateral programmes that benefit" the region, including the IMF's Enhanced Structural-Adjustment Facility (Esaf) and the World Bank's International Development Association (IDA).

Africa also stands to benefit, the State Department adds, from increased US support for bilateral debt-reduction programmes, carried out in concert with other creditor nations through the mechanism of the Paris Club.

South Africa tops the list

The largest aid allocation for any Sub-Saharan African country is that for South Africa. At $82.45m, it is nearly twice as much as the number-two allocation, that for Zambia, at $42.95m. Rounding out the rest of the top ten, in order, are Mozambique, Malawi, Ghana, Mali, Ethiopia, Uganda, Tanzania and Madagascar. No allocations were made for Liberia, Sudan or Zaire - all three of which formerly ranked very high on the US aid list.

The biggest bilateral aid reduction is that for Europe and the newly independent states of the former Soviet Union, where the decline is by more than 35%. Nonetheless, proposed 1995 spending in this region, at $1.68bn, is 73% higher than for the whole of Africa.

Meanwhile, US Secretary of the Treasury Lloyd Bentsen has confirmed that the Clinton administration is to seek agreement from its industrial-country partners to reduce the debt of some of the poorest developing countries by two-thirds to...

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