New Trends in United States Economic Foreign Policy

United States economic foreign policy has two major functions: to protect and advance public and private economic interests and to promote American political interests abroad. A complex decision-making process is necessary to formulate economic foreign policy. To decide any specific issue, the government must consider the multitude of varied interests involved. The final policy decision will necessarily be a compromise, rarely satisfying all the interested parties. Recent developments in two areas of economic foreign policy— foreign trade and foreign aid programs—have required, in or der to continue the policy objectives in these fields, the formula tion and execution of new measures. One important change is the deficit in the United States balance of payments. Meas ures have been taken by the government to counteract this deficit. The rapid rate by which countries are becoming in dependent poses a new problem for foreign aid programs. The government will continue its share of technical and material as sistance to these countries and, in addition, will co-operatively seek to augment the assistance offered by the other industrial ized countries.—Ed.