Tonight we’ll be focusing on the economic tools of national power, with some more specific focus on foreign aid. It is important to realize that there are many types of economic tools with many different options available to policy makers, including various trade policies, direct aid, market promotion, and even disrupting sources of terrorist financial means. Each type is complicated and—especially in the case of foreign aid—controversial.
The term foreign aid covers a wide range of programs designed to provide economic assistance to other nations. These programs often have very different goals, targets, and limitations. These are generally divided into 5 categories:
Need Based: aid based on poverty and humanitarian needs, includes both cash and food. 1/3 of U.S. aid of this type is funneled through multi-nationals.
Criteria based: Grants to countries that show progress on key development and governance indicators.
Politically based: Support for allies that do not normally require aid, such as Pakistan and Israel.
Democracy Promotion: Programs to assist in transition from communist governments to capitalist.
Security/Law Enforcement: Mil and LE programs to assist and train in counter terrorism, internal security operations, etc.
It is important to understand that these programs are very fragmented throughout the USG. Some programs are managed by State, others by Congress, others by Departments such as Agriculture. Often this aid is given without due consideration to foreign policy goals—a significant challenge not only for the Executive Branch, but especially for COCOMs. With this as a base, we’ll start the night by looking at some of the causes of wealth/poverty, the impact, the use of foreign aid as a tool, and various trade policies and sanctions. Its more interesting than it sounds.
We’ll finish the night talking about Deterrence and deterrence theory. The concept is a very old one in military history and theory—and has developed into a high art form since the end of the Second World War and the development of nuclear weapons. We’ll look at the history of it and the development of the new concept of ‘tailored deterrence’—determining what will deter, especially in the era of GWOT and non-state actors. It must be remembered that deterrence is THE key goal in our current strategies across the board, all of which acknowledge that it is better to achieve goals through the prevention of conflict than actual war, a last resort.