Ideas to Action:

Independent research for global prosperity

Views from the Center

CGD experts offer ideas and analysis to improve international development policy. Also check out our Global Health blog and US Development Policy blog.

 

Aid to Egypt by the Numbers

Since the overthrow of Egypt’s democratically elected president Mohammed Morsi earlier this month, US government officials have made painstaking efforts to avoid calling the ouster a military coup d’état.  Why the semantic sensitivity?  Because according to the FY2012 Consolidated Appropriations Act (PL 112-74), all US foreign assistance to the Egyptian government must be terminated if the military’s actions did, in fact, constitute a coup.

Cutting Development Assistance after a Coup May Be Bad Response

Cutting development assistance to a country after some negative political shock is undoubtedly a well-intentioned effort by donors to incentivize better political institutions. Aid donors do not want to be seen to support coups, which would come with reputational and political risks at home. Instead, the argument is made that donors should offer a carrot and a stick to developing countries to encourage better institutions.