Foreign AidForeign AidWhy is it necessary and what Why is it necessary and what

does it look like???does it look like???

Is Foreign Aid Necessary?Is Foreign Aid Necessary?

4/5 of world 4/5 of world population lives in population lives in the developing the developing world (former world (former colonies)colonies)

They produce ½ of They produce ½ of the world’s the world’s economic outputeconomic output

They purchase They purchase 45% of all US 45% of all US exportsexports

As of 2000, they As of 2000, they owe $2.3 trillion in owe $2.3 trillion in foreign debt foreign debt making themmaking them

Highly Indebted Poor Highly Indebted Poor Countries (HIPC)Countries (HIPC)

History of Aid: Marshall History of Aid: Marshall PlanPlan

US Development Aid given to US Development Aid given to European countries to assist them in European countries to assist them in rebuilding after WWIIrebuilding after WWII

Cold War Foreign AidCold War Foreign Aid USA and Soviets indirectly fight USA and Soviets indirectly fight

in: in:

Afghanistan Afghanistan

VietnamVietnam

Korean PeninsulaKorean Peninsula

CubaCuba

Israel/EgyptIsrael/Egypt

(PROXY WARS)(PROXY WARS)

In other emerging nations, the two In other emerging nations, the two superpowers dole out financial superpowers dole out financial and military aid to win and keep and military aid to win and keep allies…sometimes this Cold War allies…sometimes this Cold War aid comes back to haunt us…like, aid comes back to haunt us…like, for instance, in AFGHANISTAN…for instance, in AFGHANISTAN…or IRAQ!...or IRAN!!!or IRAQ!...or IRAN!!!

Today: UN Today: UN Recommendation?Recommendation?

The UN recommends that The UN recommends that industrialized/developed industrialized/developed

nations givenations give .7% of GDP.7% of GDP to development to development

assistance.assistance.

Why a % instead of a flat $ Why a % instead of a flat $ amount?amount?

What does Foreign Aid Look What does Foreign Aid Look Like?Like?

I. Humanitarian: disaster/famine reliefI. Humanitarian: disaster/famine relief

This is the This is the LEAST controversialLEAST controversial form of aid form of aid May take the form of food, water, May take the form of food, water,

medicine, temporary housing, care for medicine, temporary housing, care for refugeesrefugees

For example: Humanitarian For example: Humanitarian Aid in IraqAid in Iraq

Medical supplies…FlourMedical supplies…FlourHumanitarian Aid is frequently Humanitarian Aid is frequently distributed by the US militarydistributed by the US military

Asian TsunamiAsian Tsunami

US Aid after Tsunami of US Aid after Tsunami of 20042004

Australian military delivering Australian military delivering Aid to Banda AcheAid to Banda Ache

CNN article on US Tsunami CNN article on US Tsunami aidaid

U.S. ups tsunami aid from $35 million to $350 millionU.S. ups tsunami aid from $35 million to $350 million Friday, December 31, 2004 Posted: 1:15 PM EST (1815 GMT) Friday, December 31, 2004 Posted: 1:15 PM EST (1815 GMT)

(CNN) -- -- The United States will increase its aid pledge from $35 million to $350 million to (CNN) -- -- The United States will increase its aid pledge from $35 million to $350 million to help victims of the tsunamis in south Asia, CNN has learned. help victims of the tsunamis in south Asia, CNN has learned.

The increase followed criticism that the initial amount was far from enough. The increase followed criticism that the initial amount was far from enough. The director of the U.S. Agency for International Development told CNN on Friday that the $35 million The director of the U.S. Agency for International Development told CNN on Friday that the $35 million

pledge was only the first step in U.S. aid to the countries that were devastated by Sunday's earthquake pledge was only the first step in U.S. aid to the countries that were devastated by Sunday's earthquake and tsunamis.and tsunamis.

"The money was committed on Sunday when the emergency took place," Andrew Natsios told CNN's "The money was committed on Sunday when the emergency took place," Andrew Natsios told CNN's "American Morning." "It's action on the ground that is needed. We will get more than enough money "American Morning." "It's action on the ground that is needed. We will get more than enough money from the president and I'm sure Congress later on when we need it."from the president and I'm sure Congress later on when we need it."

Sen. Patrick Leahy Thursday said the intial U.S. offer "gave the wrong impression to the rest of the Sen. Patrick Leahy Thursday said the intial U.S. offer "gave the wrong impression to the rest of the world."world."

"That's about half of what the little country of Spain is spending," the Vermont Democrat said. "We have "That's about half of what the little country of Spain is spending," the Vermont Democrat said. "We have to spend a great deal more than that. We should have been eagerly telling that part of the word, to spend a great deal more than that. We should have been eagerly telling that part of the word, especially the Muslim part of that world, that we here in America are generous, a good people, and we especially the Muslim part of that world, that we here in America are generous, a good people, and we are strongly committed to help them."are strongly committed to help them."

More than 135,000 deaths had been reported Friday in several countries along the Indian Ocean and More than 135,000 deaths had been reported Friday in several countries along the Indian Ocean and that number was expected to climb as reports come in from remote parts of the region.that number was expected to climb as reports come in from remote parts of the region.

Getting aid into Indonesia's Aceh province has been difficult because of an ongoing civil war. Natsios Getting aid into Indonesia's Aceh province has been difficult because of an ongoing civil war. Natsios said the U.S. has been able to reallocate staff and supplies into areas of the province that were said the U.S. has been able to reallocate staff and supplies into areas of the province that were untouched for four days after the quake and subsequent tsunami struck.untouched for four days after the quake and subsequent tsunami struck.

United Nations officials said that the international community had pledged a combined half-a-billion United Nations officials said that the international community had pledged a combined half-a-billion dollars in support, and that figure jumped to more than $800 million Friday when the United States dollars in support, and that figure jumped to more than $800 million Friday when the United States increased its pledge.increased its pledge.

Partial list of international donors, Partial list of international donors, according to the State Department:according to the State Department: Australia: $7.6 million Australia: $7.6 million Bahrain: $5 million Bahrain: $5 million Bangladesh: $1 million Bangladesh: $1 million Belgium: medical teams Belgium: medical teams Canada: two helicopters, 32-person rescue Canada: two helicopters, 32-person rescue team, evacuation flights, medical supplies team, evacuation flights, medical supplies China: $5.1 million in cash and relief supplies China: $5.1 million in cash and relief supplies France: tents, tarps, food, water-treatment France: tents, tarps, food, water-treatment supplies supplies Germany: food and high-speed pumps Germany: food and high-speed pumps India: $5 million India: $5 million Japan: $1 million, generators, tents, blankets, Japan: $1 million, generators, tents, blankets, bottled water bottled water Kuwait: $400 million in oil, $100 million in cash Kuwait: $400 million in oil, $100 million in cash

Mexico: bedding, food, baby items, personal Mexico: bedding, food, baby items, personal hygiene kits hygiene kits Qatar: $100 million Qatar: $100 million South Korea: $30 million South Korea: $30 million Taiwan: $2 million cash, medical supplies Taiwan: $2 million cash, medical supplies Thailand: food Thailand: food United Kingdom: food United Kingdom: food Venezuela: up to $1 millionVenezuela: up to $1 million

Foreign Aid After Katrina…

Somalia 1993 Somalia 1993 How did this effect domestic How did this effect domestic

public opinion?public opinion?

II. Military Security AidII. Military Security Aid

Equipment, training, military advisors Equipment, training, military advisors to assist another militaryto assist another military

Most controversial form of aidMost controversial form of aid

US Officer Reviews South US Officer Reviews South Vietnamese troopsVietnamese troops

Which regions receive the Which regions receive the most military/security aid?most military/security aid?

U.S. market share of worldwide U.S. market share of worldwide

arms salesarms sales

Cold War Politics…Cold War Politics…

III. Economic Stability: $$$ to III. Economic Stability: $$$ to stabilize an economic system stabilize an economic system

in crisisin crisis Usually in conjunction with the IMF or Usually in conjunction with the IMF or

World BankWorld Bank

1998: Asian Financial Crisis1998: Asian Financial Crisis

IV. Development AssistanceIV. Development Assistance

Wide variety of programs to help Wide variety of programs to help nations alleviate poverty, improve nations alleviate poverty, improve education, tackle disease and education, tackle disease and hunger, infrastructure, internal hunger, infrastructure, internal improvements, etc. improvements, etc.

African SchoolsAfrican Schools

Mothers and children waiting at a clinic Mothers and children waiting at a clinic

for internally displaced personsfor internally displaced persons in in UgandaUganda

Conflict ResolutionConflict Resolution

United States received foreign United States received foreign aid until WWIaid until WWI

1940-1980: US Foreign Aid given to 1940-1980: US Foreign Aid given to discourage the spread of discourage the spread of

communism abroad.communism abroad. Often, US military aid enabled right-Often, US military aid enabled right-

wing dictators to brutally oppress wing dictators to brutally oppress their own people (Guatemala, Chile, their own people (Guatemala, Chile,

Iran,Iraq, etc.)Iran,Iraq, etc.)

What Americans Think We What Americans Think We Give:Give:

So…what do we give???So…what do we give???

Let’s do the MATH Let’s do the MATH