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The Geo-Politics of Foreign Aid and Transnational Terrorism

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  • Jean-Paul Azam
  • Véronique Thelen

Abstract

This paper reviews some findings by Azam and Thelen (2008, 2010, 2012) that illustrate how foreign aid is used by rich countries to purchase the services of recipient governments with a view to protect or promote their economic and political interests. In particular, these findings show that foreign aid is effective at controlling the number of transnational terrorist attacks coming from the recipient countries, while it is not so regarding the number of attacks in the host countries. In contrast, they show that military intervention, as captured by the presence of US soldiers on the ground is counter?productive, as it increases the number of terrorist attacks both by source country and by host country. JEL Classification : D74, F35, H11, I21, O19.

Suggested Citation

  • Jean-Paul Azam & Véronique Thelen, 2014. "The Geo-Politics of Foreign Aid and Transnational Terrorism," Revue d’économie du développement, De Boeck Université, vol. 22(HS01), pages 263-288.
    • Handle: RePEc:cai:edddbu:edd_hs01_0263
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    References listed on IDEAS

    as
    1. Jean-Paul Azam & Véronique Thelen, 2010. "Foreign Aid Versus Military Intervention in the War on Terror," Journal of Conflict Resolution, Peace Science Society (International), vol. 54(2), pages 237-261, April.
    2. Enders,Walter & Sandler,Todd, 2012. "The Political Economy of Terrorism," Cambridge Books, Cambridge University Press, number 9780521181006, September.
    3. Jean‐Paul Azam & Alexandra Delacroix, 2006. "Aid and the Delegated Fight Against Terrorism," Review of Development Economics, Wiley Blackwell, vol. 10(2), pages 330-344, May.
    4. Azam, Jean-Paul & Thelen, Véronique, 2012. "Where to Spend Foreign Aid to Counter Terrorism," TSE Working Papers 12-316, Toulouse School of Economics (TSE).
    5. Azam, Jean-Paul & Thelen, Véronique, 2009. "Foreign Aid vs. Military Intervention in the War on Terror," TSE Working Papers 09-061, Toulouse School of Economics (TSE).
    6. Alan B. Krueger & Jitka Maleckova, 2003. "Education, Poverty and Terrorism: Is There a Causal Connection?," Journal of Economic Perspectives, American Economic Association, vol. 17(4), pages 119-144, Fall.
    7. Jean-Paul Azam, 2012. "Why suicide-terrorists get educated, and what to do about it," Public Choice, Springer, vol. 153(3), pages 357-373, December.
    8. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 28241.
    9. Jean-Paul Azam, 2005. "Suicide-bombing as inter-generational investment," Public Choice, Springer, vol. 122(1), pages 177-198, January.
    10. Atin Basuchoudhary & William Shughart, 2010. "On Ethnic Conflict And The Origins Of Transnational Terrorism," Defence and Peace Economics, Taylor & Francis Journals, vol. 21(1), pages 65-87.
    11. World Bank, 2008. "World Development Indicators 2008," World Bank Publications - Books, The World Bank Group, number 11855.
    12. William Shughart, 2006. "An analytical history of terrorism, 1945–2000," Public Choice, Springer, vol. 128(1), pages 7-39, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    foreign aid; terrorism; military intervention; education;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • I21 - Health, Education, and Welfare - - Education - - - Analysis of Education
    • O19 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - International Linkages to Development; Role of International Organizations

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