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Little attention is

from one context into another is an inherent-

Introduction

ly troublesome process. How donors connect

generally paid to

with recipients--through whom and by what

how aid is imple-

When the Communist Eastern Bloc col-

means--and the circumstances under which

mented and how

lapsed in 1989 and the Soviet Union itself

both are operating and their goals critically

ceased to exist in 1991, it seemed that the West

shape the assistance recipients get, how they

it actually works.

(particularly the United States) finally had

respond to it, and the impact of the aid. Yet

what it had always wanted--the opportunity

those factors are typically overlooked; little

to introduce quick, all-encompassing political

attention is generally paid to how aid is imple-

and economic reform. International lending

mented and how it actually works.

institutions and the foreign aid community,

In the case of U.S. assistance to Central and

often working in concert with reform-oriented

Eastern Europe and the former Soviet Union,

Central and Eastern European leaders, pressed

discussion among policymakers has typically

governments to build market economies by

centered on amounts and categories of aid

introducing economic reforms and privat-

(privatization, private sector, democracy pro-

izing state-owned resources. The United States

motion, or humanitarian) and sometimes the

made aid in support of market reform to assist

kind of aid (technical assistance, training,

the formerly communist countries its chief

grants, or loans). But rarely has Washington

priority, obligating more dollars to economic

given careful consideration to the agents of

restructuring, including privatization and

the aid on both donor and recipient sides, the

development of the private sector, than to any

relationships formed between those agents,

other single effort.1

and the implications of that for aid outcomes.

Those plans seemed promising, but their

Relationships, both between Easterners and

premise and implementation have been less

Westerners and between fellow Easterners,

than exemplary. Many U.S. aid efforts have not

have shaped the results of nearly all aid strate-

helped to support market reform, and some

gies that the major donors have employed,

have even backfired. Those efforts have not

including technical assistance through per-

necessarily achieved long-term development

son-to-person contacts, grants to Central and

or security goals by helping to build enduring,

Eastern European political-economic groups

nonaligned institutions or fostering friendly

and nongovernmental organizations, and

relations. Russia, once considered the poster

loans to businesses. Although those mecha-

child of reform, is now heading toward melt-

nisms differ, each has played a pivotal role in

down despite billions of dollars in "help" from

aid outcomes.

Western governments. As the United States

considers what course of action to take in

An Army of Advisers

Russia, as well as in Ukraine,2 (and also contin-

ues to assist some Central and Eastern

European countries), it is critical to take those

The major way that Western donors assist-

factors into account.

ed the former communist countries in their

Critics of foreign aid often point to cases in

"transition" to a market economy was through

which development assistance to the Third

"technical assistance" in the form of consul-

World appears to have retarded, rather than

tants sent to the region.3 Although the consul-

stimulated, economic progress. The record of

tants were initially welcomed by their hosts,

aid to much of the Second World will likely

within a short time after their arrival, the Poles

confirm the critics' skepticism. But even advo-

had coined a derisive term for them--the

cates of aid must recognize widespread fail-

"Marriott Brigade," after their penchant for

ures of aid to the region. Indeed, under any cir-

staying in Warsaw's Marriott and other luxury

cumstances, transplanting development assis-

hotels.4 Whether in Poland, or farther south or

tance (including ideas, know-how, and grants)

east, within a matter of a year or so of its

2