US argues over foreign aid policy along with its debt problem


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WASHINGTON // With the same acrimony it has debated the debt limit, US Congress is arguing over how much financial help Washington should give foreign governments, civil society groups and humanitarian aid organisations.

Last year, Washington approved US$55.8 billion (Dh205bn) in foreign aid. This year, despite a period of unprecedented change in the Middle East and North Africa, the Republican-led Foreign Affairs Committee of the House of Representatives already has approved legislation that calls for $8.6 billion less and attaches political conditions on what remains.

Nothing will be decided before September, and it is unlikely the measure by the House committee will be adopted by the Democrat-led Senate, the other chamber of US Congress.

Some cuts to foreign aid look likely. Equally worrying to some, such as Stephen Cook of the Council on Foreign Relations, is that the bill reflects the narrow thinking on international issues of many in the 435-member House of Representatives, and especially, how they view the Arab Spring.

"The language suggests what people genuinely believe," Mr Cook said. "It's clearly not nuanced. It takes what has changed [the Arab Spring] and turned it into the worst possible outcomes."

Under the proposal passed by the House panel, chaired by Ileana Ros-Lehtinen, an ultraconservative Republican from the state of Florida, aid to the Palestinian Authority, Lebanon and Yemen would be slashed if Hamas, Hizbollah or other groups on the State Department's list of terrorist organisation participate in government in any way.

The draft legislation also urges all Arab states to normalise relations with Israel and end the Arab League boycott of the country. Any country that participates in the boycott should be faced with "concrete steps" including possible restrictions on purchases of US arms.

By contrast, no cuts were proposed to the US$3.075 billion aid package to Israel. Instead, the committee urged the administration to recognise Jerusalem as the undivided capital of Israel and move its embassy there from Tel Aviv.

As for Egypt, the bill would condition aid to Cairo on its willingness to observe its peace treaty with Israel, prevent smuggling into Gaza and reject any role for the Muslim Brotherhood in government.

Yet with the Muslim Brotherhood a likely political player in any democratic Egypt, such restrictions appear to contradict the Obama administration's policy for support for democratic change in Egypt.

In a speech in May, President Barack Obama said international efforts to advance economic development in the region were essential to ensure that countries like Tunisia and Egypt make a smooth transition to democracy.

Such efforts, especially in Egypt, remain at the discussion stage, in part because of resistance there to any hint of international interference in internal Egyptian affairs, and in part because a plan by the US Senate to create a pool of funds to support investment and economic growth has stalled.

Joseph Lieberman, one of the senators promoting the programme, last week acknowledged that any movement on creating the funds before September was unlikely and a major aid package to Egypt was not on the cards. "In the current political climate, billions of dollars of new bilateral assistance are not likely to be flowing from the US Treasury to Cairo for the foreseeable future," Mr Lieberman said.

He cautioned, however, that the international community could not just stand by and do nothing, either: "I don't want to look back in a few years time and say we missed an incredible opportunity to bring this part of the world into modernity, democracy and rule of law."

Mr Lieberman was speaking at a presentation last month of a report on Egypt's economy and the international community's role in it.

The report, "Egypt's Democratic Transition: Five Important Myths about the Economy and International Assistance", was prepared by the Rafiq Hariri Centre for the Middle East, the London-based Legatum Institute and the Carnegie Endowment for International Peace.

One of the co-authors of the report, Carnegie's Uri Dadush, a former World Bank official, said Egypt's economy was in much better shape than generally assumed and that the international community should not be too focused on emergency aid.

"The most important thing the international community can do is create a framework within which Egypt's private sector can integrate better in the global market," Mr Dadush said. An emphasis on forging trade pacts and free-trade agreements would be an easier sell to a reluctant Congress, he added.

Mr Dadush conceded, however, that some foreign assistance for private sector development in Egypt is necessary.

Yet under the House panel's proposed foreign aid package, such aid would only provided if a certain kind of government emerged in Cairo.

To Mr Cook, the implications of the US foreign aid programme envisioned by the panel are plain.

"Promoting democracy is not the emphasis," he said. By stressing instead the honouring of agreements with Israel in terms more akin to the Mubarak era than the new Egypt, these politicians "think perhaps a role for the armed forces in politics is better than a democratic transition."

That would be at odds with much of Washington's rhetoric during the Arab Spring, Mr Cook said.

"If we want to support democracy in Egypt, we should support democracy - in word and deed."

The biog

Simon Nadim has completed 7,000 dives. 

The hardest dive in the UAE is the German U-boat 110m down off the Fujairah coast. 

As a child, he loved the documentaries of Jacques Cousteau

He also led a team that discovered the long-lost portion of the Ines oil tanker. 

If you are interested in diving, he runs the XR Hub Dive Centre in Fujairah

 

Where to apply

Applicants should send their completed applications - CV, covering letter, sample(s) of your work, letter of recommendation - to Nick March, Assistant Editor in Chief at The National and UAE programme administrator for the Rosalynn Carter Fellowships for Mental Health Journalism, by 5pm on April 30, 2020

Please send applications to nmarch@thenational.ae and please mark the subject line as “Rosalynn Carter Fellowship for Mental Health Journalism (UAE programme application)”.

The local advisory board will consider all applications and will interview a short list of candidates in Abu Dhabi in June 2020. Successful candidates will be informed before July 30, 2020. 

UAE currency: the story behind the money in your pockets
MATCH INFO

France 3
Umtiti (8'), Griezmann (29' pen), Dembele (63')

Italy 1
Bonucci (36')

Previous men's records
  • 2:01:39: Eliud Kipchoge (KEN) on 16/9/19 in Berlin
  • 2:02:57: Dennis Kimetto (KEN) on 28/09/2014 in Berlin
  • 2:03:23: Wilson Kipsang (KEN) on 29/09/2013 in Berlin
  • 2:03:38: Patrick Makau (KEN) on 25/09/2011 in Berlin
  • 2:03:59: Haile Gebreselassie (ETH) on 28/09/2008 in Berlin
  • 2:04:26: Haile Gebreselassie (ETH) on 30/09/2007 in Berlin
  • 2:04:55: Paul Tergat (KEN) on 28/09/2003 in Berlin
  • 2:05:38: Khalid Khannouchi (USA) 14/04/2002 in London
  • 2:05:42: Khalid Khannouchi (USA) 24/10/1999 in Chicago
  • 2:06:05: Ronaldo da Costa (BRA) 20/09/1998 in Berlin
Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

Results

United States beat UAE by three wickets

United States beat Scotland by 35 runs

UAE v Scotland – no result

United States beat UAE by 98 runs

Scotland beat United States by four wickets

Fixtures

Sunday, 10am, ICC Academy, Dubai - UAE v Scotland

Admission is free