In earlier stages of development of Arab nations, prior to the discovery and exploitation of oil, foreign aid has helped the nation to improve it’s economic conditions. The United States was the largest provider of foreign Arab aid. United States and Arab foreign aid: origin and development.
Israel: Offering foreign aid to developing and war-stricken countries has been an important part of American foreign policy. Israel is perhaps the first Arab country to receive foreign aid from the United States, after emerging victorious in its War of Independence and gaining political autonomy. It was at this time that Israel made an appeal to the United States for foreign funds in the form of economic grants, to help absorb its migratory population.
The response on the part of United States was encouraging, as the American president sanctioned a loan worth $135 million to Israel, as well as permitted the sale of surplus goods to this Arab nation.
In the early years of Israeli statehood, aid from the United States was meant for the promotion of peace and harmony among the national population. However, disbursement of American economic aid to Israel came to an end in 1959, when the Israeli economy gradually started becoming self-sufficient.
Iraq: Iraq is also the recipient of economic aid from the United States. The disbursement of funds from America to Iraq has increased to support the reconstruction efforts of this Middle-Eastern nation.
Countries and international organizations offering economic aid to Iraq:
In 2004, the U.S. Agency for International Development (USAID) granted contracts to Iraq worth US $900 million, for miscellaneous purposes including:
Construction of capital city
Renovation of seaports
Management of airports
Proper administration on government levels
Foreign aid worth (US) $20 billion was donated to Iraq by Iran, for reconstruction purposes.
Economic aid worth another (US) $3 to $5 billion was granted to Iraq by the World Bank, for a 5-year reconstruction plan.
Foreign aid of lesser amounts came from countries like the European Union, Spain and United Kingdom.
Foreign Arab aid: The present scenario.
With the discovery and exploitation of petroleum in the Middle-East, the overall economic conditions of the Arab nations have improved. Today, this nation has reached a sound financial position and has become economically self-sufficient. Hence countries like Kuwait, U.A.E. and Saudi Arabia have now generously started giving bilateral aids, mostly in the form of loans to different Third World countries.
|Meaning of Aid||Federal Aid|
|Financial Aid||Aid to Developing Countries|
|Foreign Aid||Bailout Beneficiaries|
|Legal Aid||Aid Statistics|
|Public Aid||Aid Trade|
Last Updated on : 10th July 2013