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Tristen Lo
Mrs. Johnson
Honors Sophomore English - 7
28 March 2022
Benefits of Increasing Foreign Aid
Out of 195 countries, over 85% are considered undeveloped or least developed according
to the United Nations Economic and Social Council. To alleviate poverty in these foreign
countries and to help them develop, 29 countries, including the United States, are members of the
Development Assistance Committee (DAC). These countries address major problems in
undeveloped countries and provide monetary support for them. Increasing or decreasing the
amount of foreign aid has become a subject of debate among politicians and economists in recent
years. However, foreign aid has many benefits across the world. In our country, foreign aid, in
the form of monetary funding and military support, should be expanded to boost peace and
prosperity throughout the foreign country and our own.
Foreign aid first originated in the 19th century when European countries, “like Germany,
France and Britain were providing regular aid to their colonies in Africa, Latin America and
Asia. Colonial powers used their money to build infrastructure—ports, roads, railways—and
wealthy American industrialists were also involved in development aid through the Ford and
Rockefeller Foundations” (Reliefweb.int). When the colonies eventually gained their
independence, foreign support still focused on economic development. Later, after World War
One and Two, there was a major focus on rebuilding war-torn Europe. Post-war, the United
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States became the largest donor of monetary support to Europe. This was also when stationing
military troops in a foreign country became commonplace. This was to ensure peace throughout
the world especially after two major wars. This was also used to protect national interests,
namely limiting the spread of communism and to ensure the Axis powers did not rebuild their
army and seek revenge against the Allies. This build up of troops in foreign countries and giving
of financial aid would increase as conflicts, like the Cold War, would occur and decrease as the
conflicts faded away. These days, North American and European Countries give support to
foreign countries “to meet people's basic needs in health, education, water and sanitation”
(Reliefweb.int). Overall, foreign aid and military support have been used in the past to protect
foreign interests, provide humanitarian aid, and to establish relations between countries.
First of all, the United States should increase the amount of foreign aid we give because
of the large amount of wealth the country possesses. According to the Organization for
Economic Co-operation and Development, the United States has the eighth highest GDP at
$63,285 per capita. The U.S. also has a national net worth estimated to be $126.34 trillion
according to Credit Suisse, an international banking company based in Switzerland. With all this
money, the United States had a total budget around $7 trillion in fiscal spending year of 2021.
Despite this large sum of money, only $65.2 billion was allocated for foreign aid- 0.92% of the
total budget. In contrast, $2.77 trillion was spent on unemployment aid just in 2021 even when it
does not provide close to as much benefit as foreign aid. Out of around 30 countries in the world
that provide foreign aid, the United States provides the second largest amount of aid. China, not a
member of the Development Assistance Committee, provides the highest reported amount of aid.
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“In 2009, China’s total financial commitment to development aid reached a whopping $69.9
billion, two times that of the U.S. foreign aid in the same year” (Borgen Project.org). According
to AidData, most of China’s aid goes to increasing trade with other countries, the top recipients
being members of the One Belt One Road Initiative by President Xi Jinping. Rather than
focusing on development, this initiative focuses on increasing trade and their economy. Although
the United States provides some of the highest amounts of foreign aid, they provide one of the
lowest amounts by percentage of Gross National Income (GNI). On average, the United States
allocates around 0.19% of their GNI for foreign aid, far shorter than the 0.7% target instituted by
the DAC. Countries that reach this target include “Sweden with 1.02%, Luxembourg with
1.00%, Norway with 0.99%, Denmark with 0.74%, and the United Kingdom with 0.70%”
(Wristband.com). If the United States were to increase the amount of foreign aid to 1% of their
GNI, they would be able to provide many lifesaving technologies and bring needed development
to that country. Furthermore, increasing the amount of aid provided would set an example for
other countries to follow. By increasing from 0.19% to 1%, or even just 0.7%, the United States
would show other countries that the development of other countries should be valued and such,
other countries might increase their amount of aid. Another effect increasing aid might result in
is improved relations with other countries. In the same way China is increasing aid to other
countries to increase trade, the United States would be able to solidify their position as an
economic superpower and be able to maintain relations with states that competing countries
might be interested in influencing. With China increasing trade with other countries, they have
increased their GNI to $24.11 trillion, overtaking the United States. Most of this increase has
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correlated with China implementing the “One Road One Belt Initiative”, further supporting the
idea that the United States should increase the amount of aid provided to foreign countries. Since
there is a clear benefit to increasing foreign aid, as seen with China, it would be in the United
State’s best interest to increase foreign aid as a way to boost national income.
The second thing the United States should increase is military support to other countries.
Currently with the Russo-Ukrainian conflict, according to The Hill, the United States has
provided $2 billion to Ukraine since Biden took office. Despite the staggering amount of money
being provided to Ukraine, many countries going through conflicts are not receiving support
from the United States at this scale. For example, Burma is currently undergoing major conflict.
However, as reported on foreignassistance.gov, only $5.8 million has been given to increase
peace and security in that area. Since the civil war started in February 2021, over 12,000 people
have been killed. If the United States were to offer more money to try and solve the conflict in
that area, it could improve relations and help many suffering people. This in turn would improve
foreign views of the United States and could influence democratic ideals in that country. Another
important reason foreign military support is important is the ability to project military power all
over the world. As the undisputed sole superpower of the world, the United States is able to react
and respond quickly to international threats. According to research from the Quincy Institute, the
United States maintains around 750 military installations across the world. These include bases,
satellite radars, hospitals, and more. With the ability to project a military force across the world,
the United States is able to respond to threats before they impact citizens on home soil.
According to The Conversation, “When stronger countries provide security for weaker countries,
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they receive non-material benefits in return. For example, the weaker country may sacrifice
control over their foreign policy and give the major power access to territory or airspace it
otherwise would not have” With other countries that have very different policies, it is important
that the United States is able to show off military presence in order to discourage antagonizing
countries, such as North Korea, China, and more. For example, if military presence was not seen
in Taiwan, China would have invaded Taiwan and continued making advances in the South
China Sea. If an attack on the U.S. were to happen, military bases all over the world would be
activated in response to the attack. Another important reason for having a military overseas is to
strengthen allied countries. With troops overseas, they spend a lot of time training with allied
military forces. This helps strengthen both sides and increases cooperation between countries
with military conflict seeming inevitable. Considering all this, with an increased military
presence abroad, this would benefit the relationship between the U.S. and allied countries,
discourage antagonizing countries, and maintain international peace.
The benefits of increasing foreign aid and military presence across the world helps
increase security and prosperity here at home. As recognized by the United States Institute of
Peace, “American security and prosperity at home are linked to economic and political health
abroad, and that America does better when other countries have the incentive and the capacity to
work alongside us in tackling global challenges” (UISP). By having foreign military installations
and providing foreign aid, it provides a framework for advancing economic openness, security,
and political freedom. According to RAND Corporation, it has long been acknowledged that “the
political and military stability provided by the United States also fosters international economic
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stability, benefiting the United States by fostering trade in goods and services, access to global
capital, and therefore higher rates of economic growth at home” (RAND). Part of the reason why
the United States is a global leader is because “The U.S. has been particularly effective at
building “soft power,” meaning that people in other countries support the U.S. because of the
affinity they feel toward Americans and American culture” (The Conversation). This soft power
allows for better relations between countries and improves overall international cooperation.
According to surveys conducted in fourteen countries with the highest U.S. military presence, the
majority of people have a favorable opinion of U.S. military presence and feel like they
contribute to their safety. It is important to maintain positive foreign relations. By increasing the
amount of aid being given and increasing security presence in areas with conflict, the U.S. would
be able to maintain or even increase positive outlook with foreign citizens. Further research by
the RAND Corporation discovered that “doubling the number of U.S. security treaties with other
countries would expand U.S. bilateral trade by an estimated 34 percent. This result stems from
both ‘economic’ security treaties and ‘noneconomic’ security treaties . Meanwhile, doubling the
number of U.S. troop commitments overseas would increase U.S. bilateral trade up to 15 percent,
depending on the armed service” (RAND). With this research consulting over 11,000 bilateral
trading partners, it is clear that foreign aid and military presence has a positive benefit on
relations with foreign entities. If the United States were to stop providing foreign aid and
withdraw all overseas troops, countries not sharing the same ideals would fill the vacuum left by
the U.S. For example, “Neither Russia nor China proclaim the same loyalty to those principles as
we [the United States] do. Were they to fill a vacuum left by the United States, it could very well
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mark a return to a balance of power system, where the world’s major powers competed militarily
for territory and spheres of influence at great human and financial cost” (UISP). This power grab
would result in a period of time similar to the era of imperialism. During European imperialism
and colonization, an estimated 10% of the world population was killed, excluding conflicts
between European kingdoms. To prevent bloodshed of this scale, it is imperative the United
States maintains peace throughout the world by providing foreign aid and having an active
foreign military presence. Overall, the peace offered by U.S. aid prevents major conflicts from
erupting all over the globe while boosting economic and political health.
Many right-wing institutes claim foreign aid and foreign military presence is negative.
They argue that foreign aid increases dependency and could increase corruption while having
foreign military presence is too expensive and it increases the chances of war. For example,
researchers estimate that “the annual benefits to America's GDP from reducing U.S. overseas
security commitments by 80 percent could reach nearly $140 billion” (RAND). While there is
validity to this research, the research neglects to mention the cost of withdrawing all U.S. assets
from foreign countries. Conducted by the Research and Development Corporation, research
shows that the costs of withdrawing 50% of overseas military could add up to be as much as
$500 billion. The increase in GDP by reducing overseas commitments is not worth the vast costs
associated with the withdrawal and losing the increases to the U.S. economy. In fact, by
increasing foreign presence, it is possible to increase America’s GDP by more than that which
would be given from withdrawing troops. As for increasing the chances of war, having troops
abroad employs a policy of deterrence and prevents aggression. After all, preventing conflict
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before it occurs is better than having to respond to a conflict because nothing was done to
prevent it. While economists have made arguments that foreign aid increases dependency and
corruption, this is a common myth. In fact, there are precautions taken that prevent this from
happening. To prevent these issues from occurring, the United States does not just hand a
country a blank check. In fact, they designate money to US-based agencies. “These agencies then
allocate funding to a mix of nonprofits for key activities that directly benefit those most affected
by crisis and emergency” (Concernusa.org). The process of providing money to a foreign country
is a heavily monitored process, ensuring it is given to the proper recipients for a proper project.
According to Concern USA, “foreign assistance spending is some of the most scrutinized
spending in the federal government. What’s more, aid is a powerful bargaining chip for the
United States. Organizations like USAID and MCC, keep close tabs on what is done with the
money they deliver — and how effective that spending is. Agencies will also often negotiate aid
contracts with governments in order to offset corruption or create systemic change to support
improved social services and protections” (Concern USA). If the U.S. government does give aid
directly to a foreign government, it is always marked for specific sectors or projects. For
example, when the U.S. gave money to the government of Pakistan, it was marked “specifically
to fund the Sindh Basic Education Program” (Concern USA). In conclusion, while disagreeing
views do get some of the information and have valid concerns, they miss critical information that
shows just how beneficial foreign aid and military bases are.
In light of these facts, the United States of America should increase foreign aid in the
form of financial and military support. In turn, this would increase world peace, economic
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growth in the U.S. and the world, and international cooperation. Just by increasing foreign aid to
1% of the U.S.’ GNI, America would be able to provide much needed support and development
to undeveloped countries. The U.S. would be able to reach the target percentage according to the
Development Assistance Committee. By increasing military presence overseas, the U.S. would
be able to project strength throughout the world and deter other countries from attacking. With
all this being said, foreign aid and military aid should be increased to maintain world peace and
increase economic prosperity.
Works Cited
“America’s Role in the World.” United States Institute of Peace, 4 May 2018,
www.usip.org/publications/2017/03/americas-role-world. Accessed 4 Apr. 2022.
Carla Martinez Machain, et al. “Why Does the US Pay so Much for the Defense of Its Allies? 5
Questions Answered.” The Conversation, 2 Dec. 2019,
theconversation.com/why-does-the-us-pay-so-much-for-the-defense-of-its-allies-5-questi
ons-answered-127683. Accessed 4 Apr. 2022.
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Egel, Daniel, et al. “Economic Benefits of U.S. Overseas Security Commitments Could Far
Outweigh Costs.” Rand.org, RAND Corporation, 22 Sept. 2016,
www.rand.org/pubs/research_briefs/RB9912.html. Accessed 4 Apr. 2022.
“FA.gov.” Foreignassistance.gov, 2022, foreignassistance.gov/. Accessed 4 Apr. 2022.
“Five Countries That Provide the Largest Foreign Aid.” The Borgen Project, 14 Mar. 2018,
borgenproject.org/five-countries-that-give-the-largest-foreign-aid/. Accessed 4 Apr. 2022.
“Foreign Aid Myths and Facts That Every American Should Know.” Concern Worldwide, 25
Aug. 2021, www.concernusa.org/story/foreign-aid-myths-facts/. Accessed 4 Apr. 2022.
‌“Global Wealth Report.” Credit Suisse, 2022,
www.credit-suisse.com/about-us/en/reports-research/global-wealth-report.html. Accessed
4 Apr. 2022.
Mitchell, Ellen. “Here’s Everything the US Is Sending to Ukraine’s Military.” The Hill, The Hill,
16 Mar. 2022,
thehill.com/policy/international/598524-heres-everything-the-us-is-sending-to-ukrainesmilitary/. Accessed 4 Apr. 2022.
“The History of Foreign Aid - World.” ReliefWeb, 19 Dec. 2013,
reliefweb.int/report/world/history-foreign-aid. Accessed 4 Apr. 2022.
‌“United States - OECD Data.” TheOECD, 2020, data.oecd.org/united-states.htm. Accessed 4
Apr. 2022.
Vine, David. “Drawdown: Improving U.S. And Global Security through Military Base Closures
Abroad - Quincy Institute for Responsible Statecraft.” Quincy Institute for Responsible
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Statecraft, 20 Sept. 2021,
quincyinst.org/report/drawdown-improving-u-s-and-global-security-through-military-bas
e-closures-abroad/. Accessed 4 Apr. 2022.
“Which Countries Provide and Receive the Most Foreign Aid?” Wristband Resources, 2017,
www.wristband.com/content/which-countries-provide-receive-most-foreign-aid/.
Accessed 4 Apr. 2022.
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