The Politics of Arab Foreign Aid

By: Geeva Gopalkrishnan and James Gadea

Israeli Diplomatic Relations and Arab Fund Disbursements:

Research QuestionWhat role do Israeli diplomatic relations have on

foreign aid disbursement by the Arab Fund to Arab League members?

LEAGUE OF ARAB STATES

ARAB FUND FOR ECONOMIC AND SOCIAL DEVELOPMENT

HypothesisThe Arab Fund provides more aid to Arab

League countries that have diplomatic relationships with Israel.

Literature ReviewArab countries give

aid for economic development and political reasons.

Saudi Arabia gave aid during Cold War to counter socialist movements.

(Momani & Ennis)

Literature Review

(Neumayer 2003)

Greater Arab population, more Arab aid

Poorer Arab country, more Arab aid

No relationship with Israel, more Arab aid

Anwar Sadat

Case Study

0 5 10 15 20 25 30 35 40 450

1

2

3

4

5

6

Years

Aid

Dis

burs

em

ents

by A

rab F

und (

ln)

201220071978 1988

Aid Disbursements Received by Egypt

Theory

Arab States use the Arab Fund for Political Gain

Theory

Secret Promotion of Security

Economic Engagement

• Arab Solidarity• Economic Engagement

instead of punishing

Theory

TheoryArab Fund favors members who have

relations with Israel Publicly denounce IsraelPromote securitySecurity benefits of encouraging

diplomacy

Essentially…

It’s politics, baby.

MethodologyAid Disbursements by

Arab Fund

Diplomatic Relations with Israel

GDP/capita

Population

African Country War Pariah

Dependent Variable:

Independent Variable:(Dichotomous)

Control Variables:

US AllyBritish

Colonial Legacy

Results

Results * denotes significance at the |P|<.1 level; ** denotes significance at the |P|<.05 level; *** denotes significance at the |P|<.01 level

No evidence that the members of the Arab League punish the establishment of diplomatic relationships with Israel through the Arab Fund.

In fact, we find significant evidence that points to the contrary.

Conclusion