American Foreign Aid before and during the War on Terror: An Empirical Examination

By Hasnat, Baban | The Journal of Social, Political, and Economic Studies, Spring 2010 | Go to article overview

American Foreign Aid before and during the War on Terror: An Empirical Examination


Hasnat, Baban, The Journal of Social, Political, and Economic Studies


The paper uses time series and cross-section data to examine the impact of the Global War on Terror (GWOT) on the U.S. bilateral aid allocation in 144 countries. For its theoretical and conceptual basis, the paper draws on international and development economics. It uses descriptive statistics (1996-2007) to analyze the data and multivariate analysis (1996-2006) to test the hypotheses. The paper finds that aid allocation is affected by the GWOT. While the GWOT may have increased the amount and the number of countries receiving aid, the paper finds that the degree to which aid focuses on low income countries has not changed.

Key words: Foreign Aid; Global War on Terror; "9/11"; Muslim Countries.

Foreign aid has been an important part of American foreign policy for decades. Recently, the American foreign aid budget has increased to a historic level. The increase is significant since it came during the Bush presidency, an administration that was very critical of foreign aid, arguing that much of the aid was wasted and did not serve American interest. These views changed with the tragic events of the 9/11 terrorist attacks. The administration overhauled the foreign aid regime, created new institutions to deliver aid, and increased funding to help poor countries. Eliminating poverty in far-away countries was seen as a tool for fighting poverty as well as terrorism. Linking poverty with security is not a new idea in American foreign policy circles, as a similar argument was made during the Cold War. Is the increase in aid due to the new security imperatives? The purpose of this paper is to investigate whether the pattern of U.S. foreign aid shows any fundamental policy shift after 9/11. More specifically, it tries to understand the impact of 9/11 and the subsequent Global War on Terror (GWOT) on U.S. foreign aid policy. Did the countries in the front line of GWOT receive more aid? Did the countries that are known to have sympathy towards the terrorist agenda receive less aid? Did the coalition of the willing partners receive more aid? Did 9/11 affect the allocation of aid to Muslim countries? The paper utilizes the latest internationally comparable data available on country characteristics and foreign economic assistance, which only go through 2007 at the time of completing the manuscript (December 2009).

A Brief Literature Review

The extensive literature on foreign aid contains two streams of research - one dealing with motives for aid and the other with aid effectiveness. Our review is restricted to the first, since we want to understand if the new security concerns have any effect on U.S. aid policy. Lancaster (2007) starts with a simple question: why do countries give foreign aid? She provides a tidy classification of the purposes of foreign aid. Historically, it has been used for four main purposes - diplomatic (i.e., international security, international political goals, etc.), developmental, humanitarian relief, and commercial (Lancaster 2007, p 13). After the Cold War, foreign aid has been provided for new purposes such as promoting economic and social transitions, promoting democracy, addressing international public goods issues, and mitigating conflicts and managing post-conflict transitions. In reality, it is not easy to categorize aid into such neat purposes, as purposes are invariably intertwined with one another (Lancaster).

Security concerns and international political goals have always been a part of foreign aid. The Marshall Plan, the first major U.S. foreign aid program, was implemented to rebuild Western Europe and repel communism after World War II. During the Cold War, both the U.S. and the Soviet Union used aid to realize strategic goals.

China and Taiwan have also used aid to gain support and recognition for their governments. After signing the U.S.-brokered Camp David peace agreement, Israel and Egypt became the largest recipients of U.S. foreign aid from 1980 until very recently. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

American Foreign Aid before and during the War on Terror: An Empirical Examination
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.