In Defense of Aid
David Kampf, Foreign Policy in Focus
July 17, 2009
With billions of dollars dedicated to saving the economy and millions of American jobs lost, it is probably a bad time to discuss foreign aid. How can the United States justify sending money abroad when people are struggling financially at home and are increasingly worried about the country’s growing debt? The bottom line, however, is that foreign aid is in America’s own interest. Even during an economic downturn, there are humanitarian, diplomatic, economic, and security reasons for improving and increasing foreign assistance.
Well-run programs improve global health, economic development and governance, and reduce the chance of future conflict. On his 100th day in office, President Barack Obama said that foreign aid is important because “we can advance our national interests more effectively by showing that we are interested in the well-being of the people of other countries.”
The effects of the Great Recession are not confined to rich countries. Developing countries — the governments often least able to provide domestic stimulus packages — are expecting remittances and foreign direct investment to fall. In April, the World Bank and International Monetary Fund estimated that 55 to 90 million more people will be trapped in extreme poverty this year because of the financial crisis.
The United States can help. Foreign assistance that saves lives, alleviates hunger, fights diseases, and creates opportunities is in everyone’s interest. Today’s humanitarian concerns are often tomorrow’s disasters, and aid costs less before crises erupt.
Refurbishing U.S. Image
The wars in Iraq and Afghanistan, along with President George W. Bush’s tough rhetoric and foreign policy, tarnished America’s image abroad. Providing short-term relief followed by long-term investments can improve the country’s favorability. For better or worse, money talks. The Pew Global Attitudes Project found that Indonesians viewed the United States more positively after Washington responded generously to the tsunami in December 2004 (U.S. favorability grew from 15% in 2003 to 38% in 2005 but decreased slightly in 2006 and 2007).
Aid is not a vanity exercise. An unpopular government or leader complicates diplomatic efforts and compromises America’s ability to lead. If the United States is respected around the world and seen as a defender of human rights and open societies, diplomacy becomes easier. Foreign assistance that is well communicated to international audiences will help the U.S. achieve its own goals.
Aid programs can also improve the business environment in developing countries by reducing corruption, building infrastructure, establishing rule of law, and fostering good governance. This not only allows local business to thrive, but also enables American businesses to expand in a globalized world and creates valuable export markets. While traveling in Accra, Ghana over the weekend, Obama emphasized that it is in America’s interest to support sustainable democratic governments, limit corruption, train a skilled workforce, and promote trade and investment because when “people are lifted out of poverty and wealth is created in Africa, new markets will open for our own goods.”
As international demand for energy resources rises, the United States will need to ensure access to raw materials. Energy security relies on a diverse supply of oil. Nigeria is Africa’s largest producer of oil and a major exporter to the United States. The continent’s most populous nation and second biggest economy, however, is saddled with insecurity in the Niger Delta and overall corruption. Fighting in the Delta has reduced the country’s oil output by more than 20%. Through development and diplomacy, Washington should push for peace in the Niger Delta and prevent backsliding in anticorruption initiatives.
David Kampf is a writer, analyst, and Foreign Policy In Focus contributor based in Washington, DC. Recently, he directed communications for the United States Agency for International Development and President’s Emergency Plan for AIDS Relief in Rwanda. He writes for the Foreign Policy Association’s blog on rising powers and is a columnist for Asia Chronicle.
