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US Aid for Israel – A Historical Overview

Author

Listed:
  • Konstantin Yanovskiy

    (Gaidar Institute for Economic Policy)

Abstract

Historical data on US aid to Israel illustrates incentives of political leaders and special interests, first and foremost in Israel. As on the early stages of Alliance Israel military capabilities could provide valuable services to USA, undermining USSR influence in the Middle East, the current relations are hard to explain by mutual national interests. The paper focus on the political actors' personal incentives, provides explanation for growing exploitation of US Aid by the special interests in Israel, while significance of the aid is approaching to insignificant level and contributes negatively to the country Defense capacity because of political conditionality imposed. The data presented could support a new vision of US-Israel alliance: ceasing of the US Aid programs for Middle East could contribute both countries Defense needs.

Suggested Citation

  • Konstantin Yanovskiy, 2014. "US Aid for Israel – A Historical Overview," Working Papers 0090, Gaidar Institute for Economic Policy, revised 2014.
  • Handle: RePEc:gai:wpaper:0090
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    File URL: http://www.iep.ru/files/RePEc/gai/wpaper/0090yanovskiy.pdf
    File Function: Revised version, 2013
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    More about this item

    Keywords

    Political conditionality; Special interests; political leverage;

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F35 - International Economics - - International Finance - - - Foreign Aid

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