October 2008

Since the war on terrorism began in 2001 and the Millennium Challenge Account (MCA) and Global HIV/AIDS Initiative (GHAI) were launched in 2004, the United States has increased foreign aid spending dramatically in some regions, including East and South Asia. In 2007, the Bush Administration restructured U.S. foreign aid programs to better serve the goal of transformational development, which places greater emphasis on U.S. security and democracy building as the chief goals of foreign aid. This report analyzes annual budget justifications and legislation for foreign operations appropriations and discusses U.S. foreign aid trends, programs, and restrictions in sixteen East Asian and South Asian countries.