Aid in Times of Terror

Posted: 16 Jul 2011

See all articles by Jaideep Roy

Jaideep Roy

Deakin University - Department of Economics

Prabal Roy Chowdhury

Jawaharlal Nehru University

Date Written: July 16, 2011


In a scenario where terrorist organizations, based in an LDC, target a rich nation, we examine a joint, multi-pronged and dynamic counter-terror strategy and the role that developmental aid plays in its success. We show that aid-tying leads to a fruitful virtuous cycle whereby joint counter-terror operations help in the observability of aid delivery, and aid in its turn makes greater counter-terror possible. Further, the counter-terror operations must be the largest possible at the very beginning. We argue that it is not necessarily the case that a more hawkish donor is less pro-development, or that a more altruistic donor is softer on terror. Moreover, we identify channels through which international diplomacy aimed at reducing regional hostility can help in the war against terror.

Keywords: Developmental Aid, Terror, Aid-tying, Joint Counter-terror Operations, Diplomacy

JEL Classification: D04, F50, O12

Suggested Citation

Roy, Jaideep and Chowdhury, Prabal Roy, Aid in Times of Terror (July 16, 2011). Available at SSRN:

Jaideep Roy (Contact Author)

Deakin University - Department of Economics ( email )


Prabal Roy Chowdhury

Jawaharlal Nehru University ( email )

CSDILE, School of International Studies
New Delhi

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