Foreign Aid

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BBC: The Cost of Cutting U.S. Aid to Egypt

Author: Kim Ghattas

"Weapon systems, just like cars, are bought on credit. Most countries receiving [Foreign Military Funding] aid are required to show they have the funds to cover the full cost of the order, and the value of their orders cannot exceed the credit extended by the US. But Egypt was offered a credit arrangement more generous than most."

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POMED: The Federal Budget and Appropriations for Fiscal Year 2014: Democracy, Governance, and Human Rights in the Middle East and North Africa

Authors: Stephen McInerney and Cole Bockenfeld

"U.S. support for democracy, governance, and human rights in the Middle East and North Africa is needed now as much as ever. This report aims to examine the degree and nature of that support, by way of the federal budget and appropriations process. It aims to analyze and assess the approach of the U.S. administration and Congress to budgets, spending, and foreign assistance, and to draw conclusions regarding broader priorities and thinking in terms of U.S. policy against the backdrop of dramatic political changes across the Arab world."

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Middle East Institute: U.S. Foreign Aid and Morsi's Ouster

Author: Sahar Aziz

"The United States government announced last week that it would not, after all, make a determination as to whether the ouster of Egypt's Mohamed Morsi constituted a 'coup.' This decision has both important strategic and financial implications for the United States. By not designating Morsi's expulsion as a military coup, U.S. law allows the United States to continue its $1.5 billion in annual aid to Egypt. This second largest foreign aid package, after Israel, is tied to the Egypt-Israel peace treaty and also contributes to the annual budgets of major American defense companies."

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Ask CFR Experts

What are the costs and benefits of China's relationship with North Korea?

Asked by Garrett Smith, from Stanford University

Chinese officials see stability on the Korean peninsula under the Korean Armistice as a component that has enabled China's growth for over three decades. Despite a growing difference between the economic systems of China and North Korea, China's communist party leadership feels an affinity with North Korea because its government, like China's, pursues one-party leadership under a socialist banner.

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Should the United States continue to provide economic aid to Egypt?

The Egyptian uprising presents a rare opportunity for the United States to resolve the tension between its strategic priorities in the Middle East and its desire to support democratic change in the region. Washington's past approach to aiding Egypt was based on relations with authoritarian leaders who could be counted on to advance the United States' interests. With the fall of Hosni Mubarak and Egyptian efforts to build a more open political system, a policy based on "authoritarian stability" is no longer possible, and the United States is now forced to alter the way it appropriates and distributes bilateral assistance.

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Video
Transition 2012

Transition 2012

Video Brief: Foreign Aid

Speaker: Isobel Coleman

The winner of the 2012 U.S. presidential election will have to address shifting priorities and maintain the relevancy and impact of U.S. foreign aid as government assistance is dwarfed by other forms of capital flows and new donor countries emerge, says CFR's Isobel Coleman.

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