tion believes that US aid to developing countries should only be made when productive improvements can be made through linkage to sound policies. A recipient nation's policy is considered to be sound if every dollar of American aid earns $2 of private capital. If the recipient nation's public policy is poor or unsound, aid would do more harm than good. "When nations refuse to enact sound policies, progress against poverty is nearly impossible. In these situations, more aid money can actually be counterproductive, because it subsidizes bad policies, delays reform, and crowds out private investment ((Inter-American Development Bank))."
             Moreover, the administration argues, aid should be given only to developing countries that exhibit a corresponding strong commitment to good governance, fight against corruption, promote human rights, and have respect for the law. American aid is intended to improve the health and education of the citizens of those selected developing nations (Inter-American Development Bank) so that the people will become educated and fit agents of development in the future. It is meant to instill and vitalize enterprise and entrepreneurship in the form of more open markets, sustainable budget policies and a truly strong support for development that would insure lasting growth and prosperity. The US State Department and the US Treasury use concrete, clear, strict and objective criteria in plotting and evaluating progress in every developing nation that receives American aid (Inter-American Development Bank).
             To date the development aid from the US and other nations has nearly doubled the per capita income in many needy countries in the last two generations, during which more children have had better chances of getting an education
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