Shomron Center for Economic Policy Research

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Selected notes on political economy of Intl Relations: US aid for Israel


We plan to start and promote a series of micro-projects on Political Economy of International Relations: Alliances and Sanctions.

First draft of very first paper already uploaded at SSRN.

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.

The paper contains short review of factual data, official statistics prepared to show real significance of US Aid at every stage of mutual relations.

We paid special attention on incentives of the political actors’ causing alliances efficiency. We are recommending the reader to pay attention on comparative history of Czechoslovakia and Finland 1939-1940 for better understanding the factors of demand for military ally.



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