The News Behind The News
February 23, 2001
Aid, Aid, and More AidThe government of Israel currently receives $2 billion annually in regular military aid. This is scheduled to grow $50 million a year to $2.4 billion within seven years. Israel continues to receive over $1 billion in special economic aid.
Former President Clinton recently promised a special $450 million aid package. This was delayed by Congress, and may or may not be proposed by the Bush Administration.
Now comes word that Israel will seek an additional $700 million for development and preliminary testing of its Arrow anti-ballistic missile. Israel will also ask the U.S. government to let Israeli companies participate in tenders for the U.S. National Missile Defense Program. The requests will be submitted to the Bush Administration in mid-March.
On its face, U.S. support for Israeli development and testing of an anti-ballistic missile seems to comport with the general thrust of the U.S. missile defense program. But things are never what they seem on its face when it comes to U.S. aid to Israel.
As in the past, additional U.S. aid would likely find its way into the pockets of inefficient, state-owned military firms, further subsidizing their managers and Histadrut labor union members. Additional U.S. aid eases the pressure on the Israeli government, regardless of who is prime minister and which party or coalition controls the Knesset, to use national resources efficiently, privatize state-owned firms, sell state-owned land, break up monopolies and cartels, and so on.
Perhaps most damaging of all, each additional dollop of aid reinforces Israel’s statist economic system, encouraging the ruling elite to seek more and more aid.
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