11/3/06

How to get foreign aid from the U.S.

American administrations have insisted for decades they do not engage in grubby vote-buying practices. Yet poor countries that serve on the influential Security Council typically receive substantially more U.S. aid dollars and find it easier to obtain loans or grants from financial institutions that are strongly influenced by the United States, according to recent academic studies.

The findings underscore the importance the United States places on cultivating even the weakest members of the Security Council, the lone international body with the power to impose universally binding economic sanctions and grant legitimacy to military adventures.

A two-year seat on the Security Council, for instance, can generate a 59 percent spike in U.S. assistance, according to a study by two Harvard University scholars that tracked U.S. economic and military assistance from 1946 to 2001.

In times of crisis, U.S. aid to some member countries has increased by as much as 170 percent.
Those aid levels tend to recede after the country leaves the 15-nation council.

"On average, the typical developing country serving on the council can anticipate an additional $16 million from the United States and $1 million from the U.N.," wrote Harvard economics graduate student Ilyana Kuziemko and Eric Werker, an assistant professor at the Harvard Business School. "During important years, these numbers rise to $45 million from the U.S. and $8 million from the U.N."

Kuziemko said the study did not uncover "smoking gun" proof that the United States has used aid to buy influence. But she said the investigation uncovered a statistical pattern "that is very consistent with vote buying."

The largesse has extended to U.N. financial institutions, primarily the International Monetary Fund, where the United States holds sway. Romania, Zimbabwe, Ecuador and other countries that frequently backed resolutions sanctioning Iraq for its 1990 invasion of Kuwait received sizable IMF loans, according to a study by a political scientist and two scholars at a Swiss university.

The U.S. mission to the United Nations and USAID declined requests to comment on the findings.

[Excerpt of an article by Colum Lynch, Washington Post]

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