Argument: Aid benefits National Security

In Obama’s 2012 campaign, promoting good governance through foreign aid makes sense for a range of foreign policy and development objectives. Through contributions in healthcare, education, poverty alleviation and infrastructure, investing in foreign aid and increasing the foreign aid budget will help create a more peaceful and safe global environment. Robert Gates, former US Secretary of Defense, has stated that “cutting aid jeopardizes US national security. It also creates a greater vacuum in so-called fragile states, which can easily be filled by those who do not have US interests at heart. There is no doubt that foreign assistance helps ward off future military conflicts.” [1] In much the same way as encouraging people to eat healthily will likely reduce expenditures on healthcare in the future so some spending on aid with resulting development and better perceptions of the United States can reduce conflicts in the future so saving money in the long run by preventing the need for expensive armed interventions.

[1] Worthington, Samuel, ‘US foreign aid benefits recipients – and the donor’, guardian.co.uk, 14 February 2011.

Candidate 1: "Everyone is for transparency when it is taxpayers’ money that is being spent however transparency does not make it a worthwhile investment. Ban Ki-moon, the United Nations Secretary General says that “Last year, corruption prevented 30 per cent of all development assistance from reaching its final destination.” [1] This means huge amounts of money is not helping development as it is meant to. Obama’s transparency initiatives will no doubt help show what the US is spending and where but will it tell us who else benefits? Moreover the administration’s record on aid transparency is very patchy; some budgets like the Millennium Challenge Corporation, created by the Republicans during the Bush Administration, are very transparent while big departments like State and Treasury are just the opposite. [2]

[1] ‘At high-level discussion, UN officials highlight costs of corruption on societies’, UN News Centre, 9 July 2012.

[2] ‘2011 Pilot Aid Transparency Index’, Publish What You Fund, 2012."
Candidate 2: "Yes trade can help lift people out of poverty. But in order to do so there needs to be the right conditions; there needs to be infrastructure, an educated and healthy population, and of course the country must be able to feed itself. No country is going to be able to trade its way to growth if its goods cannot reach international markets. Freer trade has not obviously been a driver of growth; poverty has fallen while the Doha round of trade liberalisation has got nowhere. [1] Instead the policies that have succeeded for China have been mercantilist policies, China may rely on trade to export its goods but it succeeded in creating its manufacturing capacity because of currency manipulation and government subsidies, things that anyone for free trade would be against. [2]

[1] Chandy, Laurence, and Gertz, Geoffrey, ‘With Little Notice, Globalization Reduced Poverty’, YaleGlobal, 5 July 2011.

[2] Prestowitz, Clyde, ‘China’s not breaking the rules. It’s playing a different game.’, Foreign Policy, 17 February 2012."
Candidate 3: "While it is undoubtedly true that some foreign aid money will flow into the hands of US firms it is wrong to argue that this is beneficial to the economy. What needs to be considered is not just whether some aid money ends up in the hands of Americans but whether that same money could be spent in such a way where more of it would. The answer is undoubtedly yes. The same money would benefit the economy much more if handed back to the citizen to spend themselves or directly invested in the United States. The developing world would then in turn benefit because more Americans spending means more purchasing of goods made in developing countries. The United States exports $2-3billion worth of goods to Africa every month while it imports around $6billion [1] clearly then Africa is benefiting from trade with the United States and more spending in the United States will benefit Africa.

[1] ‘Trade in Goods with Africa’, U.S. Department of Commerce United States Census Bureau, 2012."
Candidate 4: "Foreign aid is a minute part of the US budget as Obama has correctly argued “[it is wrong to] suggest that we can somehow close our entire deficit by eliminating things like foreign aid, even though foreign aid makes up about 1% of our entire budget.” [1] So very little of the money the US is borrowing is being spent on foreign aid.

It is also wrong to assert that the US government debt is borrowing money from China as most government borrowing comes from the US private sector. [2] China owns a mere 9.3% of US government debt with the majority being owed either to US individuals and institutions (41.7%) or to the Social Security Trust Fund (17.1%). [3]

[1] Geiger, Jacob, ‘Barak Obama says foreign aid makes up 1 percent of U.S. budget’, Tampa Bay Times, 13 April 2011.

[2] Krugman, Paul, ‘Fear-of-China Syndrome’, The New York Times, 30 August 2012.

[3] ‘Who Owns U.S. Debt’, RealClearPolicy, 2 April 2012."
Candidate 5: "The Obama administration accepts the need to maintain these global public goods. Secretary of State Hillary Clinton has written “Strategically, maintaining peace and security across the Asia-Pacific is increasingly crucial to global progress, whether through defending freedom of navigation in the South China Sea, countering the proliferation efforts of North Korea, or ensuring transparency in the military activities of the region's key players.” [1] However it is wrong to maintain that this should be considered as a part of foreign aid instead the U.S. maintains the global commons because it gains most out of them, the U.S. military is the biggest beneficiary of freedom of navigation and of the maintenance of space as a global commons as they allow the military’s global reach to be maintained. [2]

The United States may not be legally obligated to provide foreign aid and international development efforts but there are moral obligations as President Kennedy recognised when creating USAID: "There is no escaping our obligations: our moral obligations as a wise leader and good neighbor in the interdependent community of free nations – our economic obligations as the wealthiest people in a world of largely poor people, as a nation no longer dependent upon the loans from abroad that once helped us develop our own economy – and our political obligations as the single largest counter to the adversaries of freedom." [3] Today this is just as true as it was then; the United States is still one of the richest states on earth. Moreover there is an international target of 0.7% of GDP being spent overseas development assistance which the United States has signed up to and has been repeatedly re-endorsed since it was first adopted in 1970. [4]

[1] Clinton, Hillary, ‘America’s Pacific Century’, Foreign Policy, November 2011.

[2] Denmark, Abraham M., ‘Managing the Global Commons’, Washington Quarterly, 30 June 2010.

[3] Kennedy, John F., ’90 – Special Message to the Congress on Foreign Aid.’, The American Presidency Project, 22 March 1961.

[4] ‘The 0.7% ODA/GNI target – a history’, OSCE."
Candidate 6: "Aid does not benefit national security; there are two ways to increase national security. First is to increase spending on those agencies that maintain national security; the Department of Defense and the intelligence agencies. Second is by expanding the economy which provides the necessary wealth to maintain national security. Foreign aid clearly does not benefit national security because the recipient will spend it how they want and often this will be in ways that are detrimental to U.S. security, whether this is though the aid being spent on products from China or being lost to corruption. Aid from the United States has often not been beneficial in the past the U.S. gave Egypt $1.5 billion per year in aid [1] yet is now controlled by the Muslim Brotherhood, Pakistan received $963 million and yet supports the Taliban fighting against the US in Afghanistan. [2]

[1] Holan, Angie Drobnic, ‘Egypt got more foreign aid than anyone besides Israel, says New York Times Columnist Ross Douthat’, Tampa Bay Times, 4 February 2011.

[2] Bajoria, Jayshree, ‘The ISI and Terrorism: Behind the Accusations’, Council on Foreign Relations, 4 May 2011."
Candidate 7: "It is wrong to be expanding the aid budget at a time of economic crisis when the government is dramatically failing to balance its books. The list of things that the Obama administration wants to do with aid are either things that are best left to the military and intelligence services such as combating terrorism and transnational crime, or are areas where the United States has no responsibility to be providing assistance such as global education and health. The reality is that there are not rising commitments for foreign aid; far from it. The number of people in absolute poverty (less than $1.25 per day) has declined from 1.91 billion in 1990 to 1.29 billion in 2008 despite a rapidly rising population. [1] Moreover it is not foreign aid that is bringing about this decline but trade and the resulting economic growth in developing countries. [2] It is therefore completely the wrong strategy to be increasing foreign aid to tackle these problems.

[1] ‘Poverty’, The World Bank, March 2012.

[2] Chandy, Laurence, and Gertz, Geoffrey, ‘With Little Notice, Globalization Reduced Poverty’, YaleGlobal, 5 July 2011."

Aid does not benefit national security; there are two ways to increase national security. First is to increase spending on those agencies that maintain national security; the Department of Defense and the intelligence agencies. Second is by expanding the economy which provides the necessary wealth to maintain national security. Foreign aid clearly does not benefit national security because the recipient will spend it how they want and often this will be in ways that are detrimental to U.S. security, whether this is though the aid being spent on products from China or being lost to corruption. Aid from the United States has often not been beneficial in the past the U.S. gave Egypt $1.5 billion per year in aid [1] yet is now controlled by the Muslim Brotherhood, Pakistan received $963 million and yet supports the Taliban fighting against the US in Afghanistan. [2]

[1] Holan, Angie Drobnic, ‘Egypt got more foreign aid than anyone besides Israel, says New York Times Columnist Ross Douthat’, Tampa Bay Times, 4 February 2011.

[2] Bajoria, Jayshree, ‘The ISI and Terrorism: Behind the Accusations’, Council on Foreign Relations, 4 May 2011.
