US Foreign Aid... Stingy?
(Editor's Note: Lately, the USA has been criticized by pundits from within as well as from without for not doing it's part in aiding developing countries. The crux of the argument is that the US Government does not give as large a portion of its GDP in aid as smaller countries such as Norway. This analysis, aside from ignoring the sizable absolute differences in aid The US government donates more than the next two largest contributors combined), only scratches the surface of what the US delivers and the irreplacable role it plays in the global economy. Without the aid, stability, and markets the USA supplies, billions more would be in poverty, dying of disease, or engaged in senseless conflict. The last 50 years of American leadership have largely eliminated state on state conflict, provided secure reliable access to markets through control of the sea lanes and promotion of free trade, and provided access to trillions of dollars of cheap loans to developing countries. It should come as no surprise that the US also leads the world in debt forgiveness. -BBM)
-The USA provides multiple public goods that are not counted (like the fact that Norway and other European countries don't need to fund an army or navy, or defend themselves in any way, and operate in a background of stable peace enforced by the US military), leaving more money for them to spend on aid (as a percentage) and on their social programs, courtesy of the US taxpayer. In this manner, the EU aid is really subsidized to a large extent by the US.
-Aid to Afganistan and Iraq is not counted in the GDP calculation (which will be hundreds of billions).
-Debt forgiveness is not counted (again, the US leads the world here by a large margin) in the %GDP argument.
-US Private donations (to the Red Cross, Salvation Army, WorldVision, UNICEF, etc), which are well over ten times the US government donations (and amounted to over 240 Billion last year alone), are not counted in the calculation, as they are not US "government" funds.
-The USA accounts for 40% of the world's food, cash and humanitarian relief aid... but generates 25% or so of the world's GDP. So we are far overrepresented, actually.
-And that doesn't include billions more the United States spends in other areas, such as AIDS and HIV programs and other U.N. assistance.
-Perhaps most importantly, we also provide a vast and relatively open market for 3rd world goods, which has helped lift a billion people out of poverty over the last 50 years (mostly in China and India).
Can you imaging a world with out the USA as it is currently?
Let's say we retreat and allow the Non-Integrated Gap to go on its merry way. What will happen? Probably more of the same - Iran v. Iraq, Iraq v. Kuwait, various Middle Eastern Countries v. Israel, India v. Pakistan, Yugoslavia v. Yugoslavia, African civil wars, Turkey vs Greece, resurgent social/economic/ethnic tensions in Europe, and an ever-quickening spread of terror. Not hard to imagine, is it?
Or how about an isolationist, protectionist America? Leave aside the fact that all prices in the US would jump considerable without the competition of imports to keep the costs of food and clothing down... throwing millions of Americans into poverty. Or the lost American jobs in exporting. What would happen to countries at the economic margins and 3rd world countries that trade with the USA? Without markets in which to sell their wares, those countries would have minimal income. That would lead to more poverty and starvation, leading to competetion for scarce rescources and never ending loco-regional conflicts as despots vie for regional hegemony.





