Foreign Aid Around the World

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Since WWII the United States has led the developed world disbursements of foreign aid almost every year.

●    In 2012, the United States send $37,680,000,000 dollars overseas for foreign aid

A few reasons:

■    National Security
●    Counter-Terrorism focus since 2001
■    Commercial Interests
●    Think of it as an investment
■    Humanitarian Concerns
●    Less suffering makes a better world

What are the objectives?

Peace and Security
●    $10,594,000,000 of the budget
○    Specific areas include
■    Counter-Terrorism
■    Stabilization/Security Sector Reform
■    Counter-narcotics

Investing in People
●    $10,559,000,000 of  the budget
○    Specific areas include
■    Health
■    Education
■    Social Services/Protection of Vulnerable

Governing Justly & Democratically
●    $2,596,000,000
○    Rule of Law & Human Rights
○    Civil Society
○    Good Governance

Promoting Economic Growth
●    $4,405,000,000
○    Agriculture
○    Environment
○    Infrastructure

Humanitarian Assistance
●    $4,091,000,000
○    Protection, Assistance & Solutions
○    Disaster Readiness
○    Migration Management

Who were the top 5 recipients of foreign aid in 2012?

○    Definitions:
■    Per Capita: How much aid the country is receiving per person
■    Gross Domestic Product (GDP): the monetary value of all the finished goods and services produced within a country’s border, generally per year
■    Gross National Income Per Capita (GNI):  the dollar value of a country’s final income in a year, divided by its population
●    A good measurement of standard of living

Top 5 Recipients in 2012

■    Israel
●    $3.075 billion
●    Per Capita: $388
●    GDP: $258.2 billion
●    GNI Per Capita: $28,380

■    Afghanistan
●    $2.327 billion
●    Per Capita: $78
●    GDP: $18.03 billion
●    GNI Per Capita: $570

■    Pakistan
●    $2.102 billion
●    Per Capita: $12
●    GDP: $231.2 billion
●    GNI Per Capita: $1,260

■    Iraq
●    $1.683 billion
●    Per Capita: $52
●    GDP: $210.3 billion
●    GNI Per Capita: $5,870

■    Egypt
●    $1.557 billion
●    Per Capita: $19
●    GDP: $257.3 billion
●    GNI Per Capita: $3,000

Can we afford to be so generous?

●    $37 billion dollars is…
○    1% of Total US Budget
■    20% – Social Security
■    19% – Defense
■    15% – income security
■    13% – medicare
■    10% – health
■    6% – net interest
■    6% – other
■    4% – education & training
■    3% – veterans
■    3% – transportation
■    1% – foreign aid

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Sources:

http://gbk.eads.usaidallnet.gov/docs/foreign-aid-intro.pdf
http://www.foreignassistance.gov/web/default.aspx
http://data.worldbank.org/
http://www.usdebtclock.org/
http://en.wikipedia.org/wiki/List_of_countries_by_GNI_(nominal,_Atlas_method)_per_capita