This important book comes at a time when the U.S. Congress is considering some of the first significant changes in aid legislation since 1973; it deserves to be read by all officials involved in revising that legislation. The author, formerly chief economist for the Agency for International Development, has written a balanced empirical case study of the impact of the U.S. aid program to Thailand. The program's most important success, Muscat points out, was in helping the Thais to develop the institutions essential to economic development. These included at least 13 major educational institutions as well as 29 key bureaus and departments in the Thai government, plus a number of private organizations such as the Institute of Population Studies, the Industrial Finance Corporation and the Institute of Management Education. Beyond its success in documenting the effectiveness as well as the weaknesses of the U.S. aid program, the volume also provides a thorough study of the past 40 years of Thai-U.S. relations.