USAid a bit untied

[The Guardian] The US agency for international development, USAid, will no longer have to “buy American”, thanks to a policy change that will open up the agency’s contracts to firms in developing countries and could herald a significant shift in how the world’s largest aid donor does business.

The US, which spent $30.4bn in official development assistance in 2010, is known for its policy of “tied aid” – foreign aid that must be spent on goods and services purchased from companies in donor countries.

But last month, USAid revised its procurement regulations. The new rules, which come into effect on Monday, will allow the agency to purchase most goods and services from developing countries, with notable exceptions including US-funded food aid, motor vehicles and US-patented pharmaceuticals.

Read the full article here >>

/Jo

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