Good News: US Foreign Aid

US Spends 1% of Federal Budget on Aid, Not 25%

Aid is 1% of Budget, Down from 1.6% in 1980

Aid is 1% of Budget, Down from 1.4% in 2006

https://crsreports.congress.gov/product/pdf/R/R40213

Real $ Spending Increase Driven by Terrorism Threats with Bipartisan Support

https://crsreports.congress.gov/product/pdf/R/R40213

US Leads in Dollar Spending, Trails in $/Person

US Accounts for 23% of Global Aid

US 0.2% of GDP is Very Low for Developed Nation

https://crsreports.congress.gov/product/pdf/R/R40213

Where Does the Money Go?

41% to economic development and commercial interests

35% to military aid and national security

20% for humanitarian purposes

The congressional report splits up the $48B as

Peace/security 16B

Health, Ed $9B

Humanitarian $9B

Economic Growth $4B

Governance $3B

https://crsreports.congress.gov/product/pdf/R/R40213

Where Does the Money Go?

Africa 25%. Middle East 25%. Afghanistan $5B, Israel $3B, Jordan $2B, Egypt, Iraq, Ethiopia, Yemen, Colombia, Nigeria, Lebanon $1B each. Top 10 $16B, one-third of total.

Criticisms of Foreign Aid

Limited evidence that specific country investments provide political returns

Limited evidence of anti-terrorism campaign effectiveness (counterexamples)

Weak administrative structure and oversight at all levels

Direct evidence of individual country economic growth due to aid is limited

Some autocratic governments have benefitted from aid

Some aid is diverted to corrupt governments and individuals

Specific high priority countries have provided weak returns (Egypt, Pakistan, Afghanistan, Iraq)

Higher returns could be gained from investing in Western Hemisphere, Eastern Europe.

https://www.cfr.org/backgrounder/how-does-us-spend-its-foreign-aid

https://www.npr.org/sections/goatsandsoda/2018/09/18/649155725/why-the-u-s-ranks-at-the-bottom-in-a-foreign-aid-index

Benefits

Health measures, disease rates, lifespans. Global health. Economic development results globally and in individual countries. US trade benefits from developing trade lanes. Global education. Increased number of democracies, commitment to mixed capitalist economies. Lower cost of defense. Terrorism activities thwarted. Improved strength of US alliances. Improved flow through NGOs, multilateral organizations improves effectiveness. Dollar allocation provides US policy leverage.

https://www.cfr.org/backgrounder/how-does-us-spend-its-foreign-aid

https://www.concernusa.org/story/foreign-aid-myths-facts/

https://www.pbs.org/newshour/world/column-addressing-myths-surrounding-u-s-foreign-aid

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