The Development Loan Fund (DLF) was the

lending In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations, etc. The recipient (i.e., the borrower) incurs a debt and is usually liable to pay interest on that de ...

arm of the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...

International Cooperation Administration The International Cooperation Administration (ICA) was a United States government agency operating from June 30, 1955 until September 4, 1961, responsible for foreign assistance and 'nonmilitary security' programs. It was the predecessor of the ...

. It was established in 1957 as part of a revision of the

Mutual Security Act The Mutual Security Act of 1951 launched a major American foreign aid program, 1951–61, of grants to numerous countries. It largely replaced the Marshall Plan. The main goal was to help poor countries develop and to containment, contain the spre ...

. Its main purpose was extending loans to foreign nations, mostly for capital projects, repayable in the local

currency A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general def ...

of the borrower. In 1961, it merged into the

United States Agency for International Development The United States Agency for International Development (USAID) is an independent agency of the U.S. federal government that is primarily responsible for administering civilian foreign aid and development assistance. With a budget of over $27 bi ...

. At its creation, its legislative mandate ordered that it not "compete" with "private

investment capital In economics, capital goods or capital are "those durable produced goods that are in turn used as productive inputs for further production" of goods and services. At the macroeconomic level, "the nation's capital stock includes buildings, eq ...

", the Export-Import Bank or the

International Bank for Reconstruction and Development The International Bank for Reconstruction and Development (IBRD) is an international financial institution, established in 1944 and headquartered in Washington, D.C., United States, that is the lending arm of World Bank Group. The IBRD offers l ...

Shortcomings and Limitations

The DLF was dominated by the Department of State because the chair of the Board for the Fund was the

Under Secretary of State Under Secretary of State (U/S) is a title used by senior officials of the United States Department of State who rank above the Assistant Secretaries and below the Deputy Secretary. From 1919 to 1972, the Under Secretary was the second-ranking of ...

. This interfered with the ability of the DLF to impartially and independently evaluate and accept loan proposals. The 1960 report on the Operations of the DLF insisted that there was ongoing pressure on the Fund from the Department of State to dole out funds for political purposes. Furthermore, to keep it as an independent agency costed taxpayers around $2 million a year. Approximately one quarter of all DLF funds in 1958 and 1959 went to India, about $195 million. Of this sum, $175 was earmarked, meaning that it was not restricted to use in any identifiable planned project and instead being used as a line of credit to India.

Managers

* Dempster McIntosh (1957–1959) *

Vance Brand Vance DeVoe Brand (born May 9, 1931) is an American naval officer, aviator, aeronautical engineer, test pilot, and NASA astronaut. He served as command module pilot during the first U.S.-Soviet joint spaceflight in 1975, and as commander of thr ...

(1959–1961)

References

Further resources

* A.I.D. (January 1962). ''Terminal Report for the Development Loan Fund''. Development Experience Clearinghouse; http://pdf.usaid.gov/pdf_docs/pdabc787.pdf. Retrieved 8 February 2017. United States Agency for International Development Government agencies established in 1957 {{US-gov-stub

Shortcomings and Limitations

Managers

See also

References

Further resources