Foreign Aid And Diplomatic Strategy

After the World-war Two , the Cold-war between the U.S. and the Soviet Union began. At 1960s, there were many poles in the world. The military power of the Soviet Union was getting powerful and the Soviet Union began widely and intensely contending with the U.S. At the same time, the developing countries were rising. American hegemony was shaking. With the change of the political and economical conditions of the Cold-war, the contend was not limited in the military field. As a new and useful tool, foreign aid had an important function. In January 1961, John F. Kennedy took up his post as the 35th president of the U.S. He raised many new propositions about foreign policy. Kennedy advocated to attaching more importance to the developing countries. He also advocated to implement new foreign aid plan and stabilized the new countries and government by reform and development. There was much malpractice in the former aid organizations. They could not work well. Charles River advocated that they use economic developing aid to make it serve the American long-term secure interest. Its theory was closely connected with the American national safety. Kennedy began with making the new foreign aid act. In May 1961, the new Foreign Aid Act was drafted and appeared publicly.In November 1961, president Kennedy approved to set up a new foreign economic aid organization—Agency for International Development. The establishment of AID improved the confused situation in former American foreign aid organization. Its foreign aid items included Development Aid(Development Loan Fund, Development Grand Fund, oversea schools and hospitals, Investment Guarantee Program, local currency loan fund^ Supporting Assistance Loan and Contingency Assistance Fund. From 1961 to 1963,it took action actively. Every foreign aid project gained much success. But there were many problems in the agency. Kennedy took measures to adjust and improve it.Foreign aid was a diplomatic tool. The foreign aid action of AID was based on the whole diplomatic strategy of the U.S. Its arm was the American interest. The foreign aid of AID was an important part of American Cold-war strategy to the Soviet Union. It was the direct confrontation in foreign economic field between the U.S. and the Soviet Union. The U.S. used the foreign aid of AID to consolidate its strategic alliance. At the same time, aid was a means to divide the socialistic union. An important purpose of American foreign aid was they hoped the developing countries realize modernization following the way of American tape. So they would not become socialistic countries. The foreign aid of AID was a part of American foreign economic strategy.The foreign aid activity of AID in the three years had quite important status in the history of AID and the progress of American foreign aid.