In recent years, U.S. officials have shown increased interest in transferring certain social welfare functions of the U.S. government to nongovernmental organizations, both commercial and not for profit. Such organizations have expressed interest in and, according to U.S. officials, have demonstrated the ability to use federal funds to serve a wider pool of beneficiaries and help meet the U.S. governments objectives in a variety of areas. One of these areas is the delivery of U.S. foreign assistance to developing countries and countries transitioning from communism to market-oriented democracy. Many nongovernmental organizations active in international development have years of experience working overseas and have received millions of dollars in funds from private sources as well as the U.S. government for this work.

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