USA's Foreign Aid: A Critical Analysis of its Impact

The assignment content discusses USA's foreign aid, including its categories, current status, and organizations involved. The paper highlights the advantages of US foreign aid, such as fostering diplomatic relationships and combating issues like poverty, drugs, and HIV/AIDS, but also notes disadvantages like corruption and debt.

Running head: USA'S FOREIGN AID
usa’s foreign aid

1
USA'S FOREIGN AID
Table of Contents
Introduction......................................................................................................................................2
Research Objective......................................................................................................................2
Literature Review............................................................................................................................3
Current Status of US foreign Aid.................................................................................................3
Private and Official Organization for US Foreign Aid................................................................4
Advantages and Disadvantages of US’s Foreign Aid..................................................................5
Methodology and Data Collection...................................................................................................5
Recommendations and Conclusion..................................................................................................5

2
USA'S FOREIGN AID
Introduction
Foreign Aid comprise of goods, services such as training and money which the formal governmental
agencies give to other nations. Foreign aid come sunder two major categories: military or security
assistance and economic assistance. Economic assistance consist of all the programs which have
humanitarian or development objectives (Sharp, et al., 2015). It intends to involve projects that are related
to agriculture, promotion of the civil society, disaster relief and health etc. many dollars from economic
aid come from budget of State Department which includes expenses allocated by the USAID. As per data
gathered from Nonprofit and security assistance, top receivers of economic assistance of US in 2015 were
Tanzania, Nigeria, Ethiopia, Kenya and Afghanistan.
Research Objective
In this research paper, the foreign aid of USA and the current status regarding Military, Heath care and
Educational Support are also discussed. Furthermore, the advantages and disadvantages of USA’s Foreign
Aid are also discussed.

3
USA'S FOREIGN AID
Literature Review
Current Status of US foreign Aid
Only 1 percent of the federal budget is given to foreign assistance. Approximately 42 billion is devoted
by Department of state and defense and few other agencies (Lebovic, et al, 2014). The deals with Israel
come directly from State Department. The U.S. government in this case, is significantly financing the
military purchases of Israel. Development and Economic assistance is provided through budget of State
Department which includes budgets for United States Agency for the International Development and
Peace Corps, funds that are geared for specific goals like preventing spread of AIDS/HIV, bilateral
packages for economic assistance and reserve funds for the disaster relief.

4
USA'S FOREIGN AID
Private and Official Organization for US Foreign Aid
Private and Official Organization like Federal agencies implement the programs for foreign assistance
who use the funds that are appropriated or transferred to them through other agency.
Federal agencies may implement foreign assistance programs using funds appropriated directly to them or
funds transferred to them from another agency.
Agency of United State for International Development: USAID implements directly the accounts for
Transition Initiatives, assistance for International Disaster and development assistance along with USAID
portion of Global Health Account (Milner, et al., 2013).
Department of Defense of USA: In FY2013, the defense Department implemented approximately $8.25
billion for foreign assistance programs.
Department of states of US: Department of states implemented approximately $5.39 billion for funding
for foreign assistance in FY2013, although it had policy authority on much higher range of funds of
assistance.
Department of Human and Health Services in US: the national health institute conduct an international
research in health as in FY 2013, this institution applied $3.08 billion for activities of foreign assistance.
Department of Treasury: For the FY2013, Treasury Department accomplished foreign assistance that was
valued at approximately $2.67 billion.
Corporation of Millennium Challenge: Millennium Challenge Corporation is US Government
Organization which is headed by CEO who reports to directorial board which is presided by State
secretary. MCC donated approximately $1.12 billion in the FY 2013.
The MCC is a U.S. government corporation, headed by a chief executive officer who reports to a board of
directors presided by the Secretary of State. The Corporation maintains a relatively small staff of about
300. The MCC obligated about $1.12 billion in FY2013

5
USA'S FOREIGN AID
Advantages and Disadvantages of US’s Foreign Aid
Pros of US Foreign Aid
 Foreign aid can help to ease out the situation of poverty in USA
 By providing help to USA, many diplomatic relationship can be fostered
 USA can easily fight its problem like drugs and AIDS/HIV because of Foreign Aid (Wolf, et al.,
2015).
Cons of US Foreign Aid
 Many corrupt officials are present in USA who may not let the money go for real assistance.
 Providing financial aids such as loans leave the poor nations like US in poverty and debt.
 Foreign aid consist of 20 percent of money of people of America thus making it wasteful.
Methodology and Data Collection
Qualitative Method of Data collection is used for this paper to summarize and generalize the outcomes
form this study. For this research paper, the secondary source of data were used like journals, articles,
magazines and newspaper and internet sources.
Recommendations and Conclusion
Providing financial aid to United States promises various advantages. However, the critics state that there
are many loopholes involved in the system. Thus, the best way for addressing this is to make sure that
assistance is provided with structural design to correct recipient and receiver and also that proper
maintenance and implementation is there with high focus over corruption.

6
USA'S FOREIGN AID
REFERENCES
Lebovic, J. H. (2014). The Millennium Challenge Corporation: Organizational Constraints on US Foreign
Aid, 2004–11. World Development, 58, 116-129.
Milner, H. V., & Tingley, D. (2013). The choice for multilateralism: Foreign aid and American foreign
policy. The Review of International Organizations, 8(3), 313-341.
Sharp, J. M. (2015). US Foreign Aid to Israel. Current Politics and Economics of the Middle East, 6(3),
445.
Wolf, C. (2015). Foreign aid: theory and practice in southern Asia. Princeton University Press.