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Aid in times of terror

Author

Listed:
  • Prabal Roy Chowdhury

    (Indian Statistical Institute, New Delhi)

  • Jaideep Roy

    (University of Birmingham)

Abstract

In a scenario where terrorist organizations, based in an LDC, target a rich nation, we examine a joint, multi-pronged and dynamic counter-terror strategy and the role that developmental aid plays in its success. We show that aid-tying leads to a fruitful virtuous cycle whereby joint counter-terror operations help in the observability of aid delivery, and aid in its turn makes greater counter-terror possible. Further, the counter-terror operations must be the largest possible at the very beginning. We argue that it is not necessarily the case that a more hawkish donor is less pro-development, or that a more altruistic donor is softer on terror. Moreover, we identify channels through which international diplomacy aimed at reducing regional hostility can help in the war against terror.

Suggested Citation

  • Prabal Roy Chowdhury & Jaideep Roy, 2011. "Aid in times of terror," Discussion Papers 11-08, Indian Statistical Institute, Delhi.
    • Handle: RePEc:alo:isipdp:11-08
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    More about this item

    Keywords

    Developmental Aid; Terror; Aid-tying; Joint Counter-terror Operations; Diplomacy;
    All these keywords.

    JEL classification:

    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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