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New Directions in Development: A Study of U.S. AID Donald R. Mickelwait, Charles F, Sweet, and Elliott R. Morss In 1973 Congress legislated a fundamental change in U.S. foreign aid policy: rather than provide general assistance to developing nations, the U.S. Agency for International Development (AID) would focus on helping the rural poor in those nations. AID commissioned Development Alternatives, Inc. (DAI), to prepare a strategy for making the change toward "New Directions" in development and then to assist in the design and implementation of a number of projects using the new strategy. The authors describe the bureaucratic and administrative problems that confronted Development Alternatives in this job, giving particular attention to the administrative and bureaucratic barriers within AID itself. They conclude with a set of recommendations for reform that are essential if the agency is to attain its "New Directions" objectives.