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  • Essay / American Foreign Aid: Its History and Implications

    Each year, the United States of America spends $37.68 billion on foreign aid, more than any other country (Escobar 10) . Why does the United States spend so much on foreign aid, and is it a good thing? This article examines U.S. policy on overseas development spending and examines whether or not this policy helps underdeveloped countries. Even though the United States and other Western countries give a lot of money to underdeveloped countries, they have ulterior motives; foreign aid is therefore not entirely a good thing and it can even be a bad thing. The United States promotes overseas development in two ways: with official monetary donations through USAID (United States Agency for International Development), the World Bank, the International Monetary Fund (IMF) and the United Nations; and through non-governmental organizations (NGOs) (6). The United States devotes approximately 1% of its budget to foreign aid (6). This figure also includes military aid. Of all the countries receiving aid, Egypt and Israel receive the most (this is because the United States has strategic and military interests in these areas) (Pawson 112). The USAID website states: “U.S. foreign assistance has always had the dual purpose of promoting U.S. foreign policy interests by expanding democracy and free markets while improving the lives of citizens in the developing world” ( 112). In addition, 80% of the money paid by USAID goes to NGOs and American companies (112). The goal of the aid industry is to make America look like a good country doing good things. However, it is also part of US imperial foreign policy. The United States began providing international aid after World War II. This was because the United States wanted to increase its influence in the middle of paper......nceton University Press, 2011. Print.Manji, Firoze. “The depoliticization of poverty.” Missionaries, mercenaries and misfits: an anthology. Ed. Rasna Warah. Milton Keynes, England: AuthorHouse, 2008. 173-189. Print.McLaughlin, Jane Kitchel. “World Bicycle Relief: The power of mobility. » Master’s thesis. Dartmouth College, 2011. Print. Moyo, Dambisa. Dead Aid: Why Aid Doesn't Work and How There's a Better Solution for Africa. New York: Farrar, Staus and Giroux, 2009. Print. Pawson, Lara. “A charitable apartheid.” Missionaries, mercenaries and misfits: an anthology. Ed. Rasna Warah. Milton Keynes, England: AuthorHouse, 2008. 109-119. Print. Quinn, Daniel. Ishmael: An adventure of the mind and spirit. New York: Bantam Books, 1992.Print.Singer, Peter. The life you can save: How to do your part to end global poverty. New York: Random House Trade Paperbacks, 2010. Printed.