US government foreign aid was one of the topics of the recent US Presidential debate. Through all the politics and chatter, it always helps to go back to the facts.

The US government publishes something called the Greenbook (245 page pdf) which shows where all the US foreign aid goes, but you can get the same information on the website in a more useful and friendly way.

$38B in economic aid in 2010

This represents about 1% of the US national budget. There was $15B in military assistance, but will ignore that for now.

Going up for the last 10 years

Shown in the graph, aid was relatively flat at $15-20B (based on inflation adjusted 2010 dollars) between 1965-2000. The current level of $38B is where it was in 1953 time frame. For a good discussion on the trends of US foreign aid, look here.

US Foreign Aid Trends 1946-2010 - Graph

Foreign aid goes to 180 countries

Aid gets scatter to almost every country in Africa, Eastern Europe, Latin America and Asia. Detailed data here.

Foreign Assistance by Country - Map

On the surface, seems somewhat evenly distributed

Without doing a “foreign aid per capita calculation”, Africa and Asia appear to get about 1/4 of the total spend. Latin American and Eastern Europe share less than 20% of the aid. The Middle East trails with 9% of spend.  The non-region specific aid probably includes some SG&A overhead costs and generic assistance.

2010 US Aid by Region - GraphThe Middle East number (9%) is understated

Since Afghanistan (#1 recipient) and Pakistan (#2 recipient) are counted in Asia.  Also, Egypt (#5 recipient) is counted in Africa. Israel receives no economic aid, but instead receives $2.8B in military assistance.

Top 10 recipients of US aid - Graph

US foreign aid comes in many different forms

We build schools, provide drug therapies, dig wells, and even ensure fair elections. In the table below, you can see that US aid comes in 8 high-level buckets, with peace / security and health being the top two.

US Aid by Category - Table

Each category can then be broken down

For example, the US spent $9B globally on health-related aid. The majority of this is spent on HIV/AIDS, compared to Malaria which only gets 1/10th of the funding.

Health Related Foreign Aid - Table

Poverty is everywhere

In this chart below, you can see that in rural India or Pakistan, more than 70% of the people live on less than 2 dollars per day. The Economist points out here that 1 bad harvest can completely wipe these people out.

Poverty Graph

Aid is generous, but inconsistent

One of the key elements of building trust is consistency.  So, when I downloaded the foreign aid data on a few of our key frenemies (friend + enemy), I can see why they are a bit confused on whether the US is a friend or a foe. Download the entire data set (all countries, all economic aid, 1946-2010).

US gave $4.6B in economic aid to Afghanistan in 2010

This is more than we gave the country for 56 years from 1946-2002. Understandably, a lot of this has history mixed up with the cold war, but it is not surprising that they might feel America is trying to force a “all-of-a-sudden” type relationship.

Foreign Aid to Afghanistan - GraphThe US gave $1.9B in economic aid to Pakistan in 2010

As you can see in the graph below, it looks like a yo-yo. It went from a high in the early 1960s, then dropped 90% to almost nothing in the early 1990s. Looks like a U shape and a U-turn in policy.

Foreign Aid to Pakistan Graph

The US gave $1B in economic aid to Iraq in 2010

This is a lot of money – more than most countries receive from the US in aid – but it is only 1/8 of what Iraq received 2005.  Digging deeper, it looks lie 2/3 of the “economic aid” was actually the Department of Defense helping out with “security assistance”. Does not sound very economic to me.

Foreign Aid to Iraq Graph

Mexico received about $622M in aid in 2010

We all too often forget our neighbor.  US aid increased dramatically to Mexico, but in the form of more funding for narcotics control. If you read the news, the drug / gang violence in Mexico is at an all-time high.

Foreign Aid to Mexico Graph

US government aid is just a part of the equation

A reader wisely pointed out that the US government makes up just a small portion of the larger US overseas philanthropy. Completely agree. Don’t have to look any further than the Bill & Melinda Gates Foundation, Kiva.org, or a local church to see that Americans are eager to assist and invest in the developing world. Thanks for pointing that out.

US private capital flows were $161B in 2010

That is more than 4x more than what the US government sends overseas for development assistance. Look at this report from the Hudson Institute that shows how the contributors to overseas philanthropy are changing.

Remittances - Foreign Aid

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