Topic: Foreign Policy
$8 Billion in US Foreign Aid to Russia

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Why are we providing US foreign aid to the world's largest oil producer?

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by Chuck Angier
(libertarian)
Friday, August 15, 2008

Given the recent hostilities between Russia and Georgia, a brief evaluation of our foreign aid is in order. I am able to find foreign aid data only through 2006, another shining example of government efficiency. The amounts of foreign aid are not so outrageous, but taken as a whole, a billion dollars here and a billion dollars there starts adding up. One must wonder if our aid creates more enemies than friends. A table documenting oil production, sales, US imports and US foreign aid can be found at the end of this post.

RUSSIA has become the world's top producer of oil, surpassing even Saudi Arabia in 2006 and 2007. In 2007 the value of Russian production was $238 billion even supplying $2.8 billion to the US. Thanks to a near doubling of the world price we can assume that the value of their production for 2008 could end up somewhere between $400 billion and $500 billion. Can we say "Windfall Profits"? Why have we provided over $8 billion in foreign aid (that we, by the way, created out of thin air) to a very wealthy aggressor that has signed arms, nuclear and energy deals with Iran?

and oh, by the way, about Mexico...Mexico in 2007 our 3^rd largest supplier of petroleum, raked in about $35 billion in oil sales to the US. Many estimate that Mexican labor here in the states sends another $40 billion in wages back home. What is it about at least $75 billion in revenue that justifies close to a billion dollars in foreign aid?

And our friend Hugo Chavez of Venezuela produced $61 billion of oil in 2007, selling about half of it to the United States.  No one is more deserving of the $29 billion in business or the $129 million in foreign aid than avowed enemy of the US and ally of Iran like Chavez.

And Colombia? Over $1 billion of the $1.258 billion we gave to Colombia in 2006 was for narcotics interdiction and control. Obviously, this investment is really paying off. Wouldn't it cost less to legalize the drug trade to remove the criminal element?

And Iraq? With $53 billion in oil production and $4.4 billion in US aid in 2007, one must wonder if it isn't time for them to step up to the plate.

Of the top 13 suppliers of oil, only one among them, Canada, can be counted as a friend.  Considering that our best friends, such as the UK and Australia receive little or no US foreign aid, we must wonder if NO foreign aid would be more beneficial. Throwing good money after bad is not wise, but then again, it seems to be what the government does best.

Sources:

Foreign Aid: USAID

World Crude Oil Prices: Dept. of Energy, Energy Information Administration, Weekly World Prices

US Oil Imports: DOE, EIA US Net Imports by Country

World Production by Country DOE, EIA International Petroleum Monthly

Angier is self employed in agri-business and can be contacted at chuckangier@gmail.com.

©2008 Chuck Angier, all rights reserved. You must have written permission from the author in order to republish this work.
Published: Friday, August 15, 2008
Last modified: Sunday, December 7, 2008

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