Understanding the U.S. Foreign Aid System and its Funding Methods
Added on -2019-09-19
The U.S. foreign aid system comprises of security assistance, military, and humanitarian relief efforts. The aid policy aims to provide stability in conflicts region, promote democracy, bolster allies, and contribute to counterterrorism as well as law enforcement efforts abroad. However, the system is criticized by some economists as ineffective and wasteful spending.
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The estimation comes out to be different from various funding methods and categories of aid associated with the efforts of U.S. foreign assistance. As per the nonpartisan congressional research service, the broad definition of aid comprises of security assistance and military, and its total spending is approximate $49 Billion in the year 2015. It is nearly 1.3 % of the federal budget. After Second World War the level of aid funding is at their highest as the highest investment in rebuilding the European economies are done by the United States. The level of aid is cut down as compared to the today's level in the year 1990, and the overall budget is decreasedby to less than $20 Billion in the year 1997 which is 0.8 % of the overall budget. After the attack of 9/11, the aid was rose again which surpassed the overall budget by 1.4% in the year 2007so according to the analyst it was driven mainly by the assistance to Afghanistan and Iraq, but it is also influenced by the global health programs of President George W. Bush. The aid expert Carol Lancaster and former state department official has discussed in the book, namely, Foreign Aid: Diplomacy, Development, and Domestic politics, modern U.S. aid which is originated in cold war geographic: the Marshall plan in order to rebuild Europe that was designed to blunt the influence of rising communist political forces on the continent. The U.S. assistance policy is continuously derived from the national security continuously which aims to provide stability in conflicts region, promote democracy, bolster allies, and contribute to counterterrorism as well as law enforcement efforts abroad. There are other objectives also which are related to, but they are separated from U.S. national security. It also comprises of humanitarian relief efforts in order to respond directly to the acute disasters, health care, poverty reduction, and other development programs. The US aid policy is working to achieve the aim through a diverse array of programs that can be organized into broad major categories. The foreign aid spending in the year 2015 is explained below as per the CRS calculations:
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