Publication

This paper illustrates how the global war on terror (GWOT) has changed the country allocation by USAID over 1998-2001 versus 2002-2005 and adds several proxies for GWOT, including the presence of foreign terrorist groups, sharing a border with a state sponsor of terrorism, troop contribution in Iraq and relative share of Muslim population. The authors find that there is no large and systematic diversion of US foreign aid from fighting poverty to fighting GWOT.