America's Foreign Aid and Egypt



America's Foreign Aid and Egypt

Introduction

United States of America is one of the strongest economies of the world. Therefore, the country enjoys a great impact and influence over many countries and the strategies and policies of these countries. Moreover, America also enjoys friendly and peaceful relations with majority of the countries throughout. The country not just maintains diplomatic dialogues and activities with its rival and competitors, but the country also acts as a neutral party that aims for reconciliation for two countries that are in a state of war. Therefore, because of its stature and economic satiability, many countries look up to America for support and financial assistance. Hence, United States of America has also known to provide aid in the form of money, product or services to several of its underdeveloped allies and friends. One of these countries, with which America has been known to maintain diplomatic relations and provide aid, is Egypt. The two countries share a history with pleasant events mostly. However, things these relations and the foreign aid aspect might take a new turn in near future.

Problem Statement

Because of the fact that America now considers foreign aid and military assistance of other countries as a part of its Foreign Policy, Egypt has also been supported in various aspects by America. However, there are sudden and abrupt change experienced in the political environment in Egypt. Therefore, America too needs to revise its foreign policies and the criteria on the basis of which aid is provided to Egypt.

Discussion

The inflation throughout, challenging economic conditions and abrupt market and businesses trends, it is important that America too should keep a check on the amount of aid provided to its allies. Moreover, the suddenly changing political conditions in the current times also encourage America to keep a check on if the aid provided to Egypt is optimized and capitalized in all the right departments.

History of US aid to Egypt

For Egypt and America, it all started in the year 1979, with the signing of a peace treaty between Israel and Egypt. Because of America's always obvious interest in the State of Israel, America renders it as an essential part of their foreign policy to provided assistance to Egypt (Sharp, 2010).

Economic aid

Egypt and Israel remains the two largest recipient of US assistance in various fields. Egypt receives a total of $1.6 billion in annually by US in order to invest the money in health, educator and various other sectors.

The economic aid provided to Egypt by the United States of America has significantly decreased in the last ten years or so. This is as a result of the 'Glide Path Agreement' signed in the year of 1998. The agreement involved the condition of America applying a cut down in the financial aid provided to both Israel and Egypt. However, US compensated this cut down by providing sufficient military assistance. However, the growing economy of Egypt and therefore its reluctance towards accepting America's “conditions” of providing the ...