Reactive Generosity: The Role of Terrorism in Shaping U.S. Aid Distribution

open_access
Open Access
Author:
Mc Gowan, Annelise
Area of Honors:
Political Science
Degree:
Bachelor of Arts
Document Type:
Thesis
Thesis Supervisors:
Bumba Mukherjee, Thesis Supervisor
Matthew Richard Golder, Thesis Honors Advisor
Keywords:
Terrorism
United States
Africa
Foreign Aid
Attacks
9/11
Military Aid
Civilian Aid
Abstract:
A substantial body of research examines the relationship between foreign aid and terrorism, often focusing on whether aid reduces or exacerbates terrorist activity. However, less attention has been paid to foreign aid as a dependent variable– specifically, how terrorism shapes aid allocation. This thesis addresses this gap by analyzing how terrorist attacks influence the level and composition of United States foreign aid. I argue that terrorist incidents serve as security shocks, increasing the strategic importance of affected countries and prompting the United States to adjust aid allocations in line with counterterrorism priorities. I expect that increases in terrorist attacks are associated with higher levels of total U.S. foreign aid, particularly military aid, and that more democratic countries will receive higher amounts of aid. Focusing on Sub-Saharan Africa during the War on Terror period allows for an examination of aid dynamics in a region characterized by varying levels of institutional capacity, aid dependence, and exposure to terrorism by Al-Qaeda and affiliate groups. Using country-year data on 46 African states, I employ OLS regression models to test the hypotheses. The results indicate that higher levels of terrorist activity are associated with increases in total U.S. foreign aid, particularly in the form of military assistance. These findings suggest that U.S. aid allocation is responsive to security threats and sensitive to counterterrorism objectives.