<P> In 1951, the Technical Cooperation Administration (TCA) was established within the Department of State to run the Point Four program . Development aid was aimed at offering technical solutions to social problems without altering basic social structures . The United States was often fiercely opposed to even moderate changes in social structures, for example the land reform in Guatemala in the early 1950s . </P> <P> In 1953 at the end of the Korean War, the incoming Eisenhower Administration established the Foreign Operations Administration (FOA) as an independent government agency outside the Department of State to consolidate economic and technical assistance . In 1955, foreign aid was brought back under the administrative control of the Department of State and FOA was renamed the International Cooperation Administration (ICA). </P> <P> In 1956, the Senate conducted a study of foreign aid with the help of a number of independent experts . The result, stated in a 1959 amendment to the Mutual Security Act, declared that development in low - income regions was a U.S. objective along with and additional to other foreign - policy interests, attempting thus to clarify development assistance's relationship with the effort to contain Communism . In 1961, the Congress approved the Foreign Assistance Act of 1961 with President J.F. Kennedy's support, which retained the 1959 policy of international development as an independent U.S. objective and set up a new Agency for International Development, USAID . </P> <P> The volume of international aid to developing countries (called "Third World" at the time) grew dramatically from the 1960s . This aid came mainly from the US and Western European countries, but there were also significant contributions from the Soviet Union in exchange for overseas political influence in the context of the heightened global tensions of the Cold War . </P>

Positive and negative impact of development aid in north west