target health, food production, environmental, and other problems omnipresent in the developing countries are growing in number and size while bilateral assistance is also increasing. A particularly important challenge for USAID is to find its role amidst the expanding network of dozens of foreign assistance providers, and particularly those providers of S&T-related assistance that draws on the limited capabilities of recipient countries to manage technology-oriented programs.

Beyond foreign assistance funds provided by governments, other financial flows to developing countries with S&T implications are growing. They include foreign direct investment by the private sector, remittances to friends and relatives in developing countries sent home by émigrés who are resident in the industrialized countries, contributions to development projects by private foundations, and initiatives designed to benefit local populations supported by multinational companies. At the same time, some donors and international banks are canceling debt repayment obligations of a few poor countries, thereby enhancing the ability of these countries to invest more in education, agriculture, and other activities essential to long-term development.

Private flows often support technical education and vocational training. Private foundations sometimes support long-term research programs in search of breakthroughs, and Table S-1 presents an important example in this regard. Of special significance are public-private partnerships in mobilizing financial and technological resources for use in poor countries. For example, results achieved by the Global Development Alliance, which links USAID and many private company capabilities, have demonstrated the positive affects of well-designed technology-oriented partnerships.

Meanwhile, within the U.S. government the responsibilities for programs in developing countries are rapidly diffusing, with USAID now financing only about 50 percent of the government’s international development programs. The independent Millennium Challenge Corporation (MCC), which was established by the U.S. government in 2002, has a multibillion-dollar development program directed to 23 countries although it has been slow in launching its initial projects. The Department of State has relatively new responsibilities for programs directed to combating HIV/AIDS, also with an annual budget in the billions of dollars. Its HIV/AIDS program is moving forward very quickly while a number of other U.S. departments and agencies, international organizations, and private foundations finance directly related activities (see Figure S-1).

A new office in the Department of State is responsible for planning and coordinating reconstruction activities following hostilities in countries around the globe. In addition to USAID, the Department of Defense continues to be a major contributor to reconstruction efforts in war-torn countries and plays an important role in responding to humanitarian disasters. Many other departments and agencies, including the Centers for Disease Control and Prevention, the Department of Agriculture, the Environmental Protection Agency, and the Department of Energy, have expanded the international dimensions of their mission-



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