October 9, 2001 | News Releases on Department of Homeland Security

U.S. Should Tie Foreign Aid to Anti-Terrorism War, Analyst Says

WASHINGTON, Oct. 9, 2001-The United States should stop subsidizing states that support terrorism, a new Heritage Foundation paper says.

Examples include Afghanistan, the Palestinian Authority and Lebanon, which together received $136 million in U.S. foreign aid in 2001, notes Brett Schaefer, a Heritage expert on foreign trade.

However, Schaefer says, U.S. aid must not be cut off entirely to moderate governments that have terrorist organizations operating within their borders-such as Egypt, Israel and Saudi Arabia-as they are as much a target for terrorism as the United States, and their assistance will be needed to fight the war on terrorism.

"Obviously, the conditions must be tailored to the nation involved, but the overall quid pro quo of cooperation in return for aid should be comprehensive," Schaefer says. "The administration should re-evaluate aid policy toward nations that aren't doing enough to combat terrorism."

In addition, he says, the United States should encourage other countries to deny aid to states that sponsor or harbor terrorists and build a coalition to block funding by the World Bank and the International Monetary Fund to such states.

"State sponsorship of terrorism has declined in recent years, but with the United States and others targeting the terrorists' private funds, state sponsorship could rise again if steps aren't taken to prevent it," Schaefer says.

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