Fourteenth International Conference on Interdisciplinary Social Sciences

Abstract

Policymakers in OECD countries regularly cite reducing terrorism as a key purpose of foreign aid. Countries with a high number of terrorist incidents such as Pakistan, Afghanistan, and Iraq have received considerable amounts of aid meant to address the root causes of terrorism and political violence. However, there is some debate on whether aid can achieve this purpose (Young & Findley 2011). This paper analyzes quantitative and qualitative evidence to assess whether foreign aid can reduce terrorist activity. It specifically examines whether developmental assistance can reduce the amount of terrorist violence in a country through addressing grievances. Political as well as economic grievances are considered. Building on existing literature, the paper hypothesizes that foreign aid will reduce terrorist violence. However, this relationship is likely conditional on existing institutions as well as the success record of projects. Furthermore, corruption can mitigate the positive impact of aid. Data on foreign aid and terrorist violence starting in 1970 to 2013 in a large number of countries are analyzed to test this hypothesis. Survey data on grievances in 36 African countries investigate the hypothesized causal mechanism. A case study of the role of foreign aid in Kenya provides further detail on the role of aid for terrorist activities. This will allow the foreign policy community to better understand the impact foreign aid has on terrorist violence, allowing possible improvement.