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===New Directions Act===
===New Directions Act===
In the late 1960s, foreign aid became one of the focal points in Legislative-Executive differences over the [[Vietnam War]].<ref>Ruttan (1996). pp. 107–108.</ref> In September 1970, [[Richard M. Nixon|President Nixon]] proposed abolishing USAID and replacing it with three new institutions: one for development loans, one for technical assistance and research, and one for trade, investment and financial policy.<ref>See Pres. Nixon's April 1971 message to Congress: {{cite web|title=For a Generation of Peaceful Development|url=http://pdf.usaid.gov/pdf_docs/pcaaa603.pdf|access-date=22 May 2017}}</ref> USAID's field missions would have been eliminated in the new institutional setup.<ref>See the "Peterson Report": {{cite web|title=Report to the President from the Task Force on International Development|url=http://pdf.usaid.gov/pdf_docs/PNABH264.pdf|access-date=22 May 2017|page=36}}</ref> Consistent with this approach, in early 1971 President Nixon transferred the administration of private investment programs from USAID to the Overseas Private Investment Corporation (OPIC), which had been established by foreign aid legislation at the end of 1969.
In the late 1960s, foreign aid became one of the focal points in Legislative-Executive differences over the Vietnam War.<ref>Ruttan (1996). pp. 107–108.</ref> In September 1970, [[Richard M. Nixon|President Nixon]] proposed abolishing USAID and replacing it with three new institutions: one for development loans, one for technical assistance and research, and one for trade, investment and financial policy.<ref>See Pres. Nixon's April 1971 message to Congress: {{cite web|title=For a Generation of Peaceful Development|url=http://pdf.usaid.gov/pdf_docs/pcaaa603.pdf|access-date=22 May 2017}}</ref> USAID's field missions would have been eliminated in the new institutional setup.<ref>See the "Peterson Report": {{cite web|title=Report to the President from the Task Force on International Development|url=http://pdf.usaid.gov/pdf_docs/PNABH264.pdf|access-date=22 May 2017|page=36}}</ref> Consistent with this approach, in early 1971 President Nixon transferred the administration of private investment programs from USAID to the Overseas Private Investment Corporation (OPIC), which had been established by foreign aid legislation at the end of 1969.


Congress did not act on the President's proposal for replacing USAID but rather amended the Foreign Assistance Act to direct that USAID emphasize "Basic Human Needs": food and nutrition; population planning and health; and education and human resources development. Specifically, USAID's budget would be reformed to account for expenditures for each of these Basic Human Needs, a system referred to as "functional accounts". (Previously, budgets had been divided between categories such as "development loans, technical assistance, [[Alliance for Progress]] [for Latin America], loans and grants, and population.")<ref>Ruttan (1996).  pp. 94, 98–100, 543 fn. 2.</ref> The new system was based on a proposal developed by a bipartisan group of House members and staff working with USAID management and outside advisors.<ref>{{cite book|last1=Butterfield|title=U.S. Development Aid|pages=177–179}}</ref><ref>{{cite book|last1=Pastor|first1=Robert A.|title=Congress and the Politics of U.S. Foreign Economic Policy 1929–1976|date=1980|publisher=University of California Press|location=Berkeley and Los Angeles, CA|isbn=0-520-03904-1|pages=[https://archive.org/details/congresspolitics0000past/page/278 278–279]|url=https://archive.org/details/congresspolitics0000past/page/278}}</ref> President Nixon signed the New Directions Act into law (PL 93-189) in December 1973.
Congress did not act on the President's proposal for replacing USAID but rather amended the Foreign Assistance Act to direct that USAID emphasize "Basic Human Needs": food and nutrition; population planning and health; and education and human resources development. Specifically, USAID's budget would be reformed to account for expenditures for each of these Basic Human Needs, a system referred to as "functional accounts". (Previously, budgets had been divided between categories such as "development loans, technical assistance, [[Alliance for Progress]] [for Latin America], loans and grants, and population.")<ref>Ruttan (1996).  pp. 94, 98–100, 543 fn. 2.</ref> The new system was based on a proposal developed by a bipartisan group of House members and staff working with USAID management and outside advisors.<ref>{{cite book|last1=Butterfield|title=U.S. Development Aid|pages=177–179}}</ref><ref>{{cite book|last1=Pastor|first1=Robert A.|title=Congress and the Politics of U.S. Foreign Economic Policy 1929–1976|date=1980|publisher=University of California Press|location=Berkeley and Los Angeles, CA|isbn=0-520-03904-1|pages=[https://archive.org/details/congresspolitics0000past/page/278 278–279]|url=https://archive.org/details/congresspolitics0000past/page/278}}</ref> President Nixon signed the New Directions Act into law (PL 93-189) in December 1973.