Is foreign aid bad for Israel, too?

Reader comment on item: Fund the Palestinians? Bad Idea

Submitted by Susan (United States), Dec 27, 2007 at 13:40

Dear Dr. Pipes,

You seem to agree that foreign aid is in itself damaging to economies. Yet hasn't US aid to Israel been its saving grace, back when the young Jewish state (with triple-digit inflation) was just struggling to survive?

It seems that the Palestinians' problem is more a lack of reliable institutions, to ensure that the money goes to legitimate infrastructure and other development rather than just into the pockets of their mafia leadership.

Thanks, Susan B. Portland, Oregon

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Daniel Pipes replies:

Thank you for asking. I have replied to this at http://www.danielpipes.org/article/5300#Replies:

"Does this same logic apply to Israel? Yes, in my view, it does. Economics is not my subject, so I have not written on this topic but I solicited and edited an article by Joel Bainerman in the Middle East Quarterly in 1995, "End American Aid to Israel?: Yes, It Does Harm," that largely reflects my views."