US Aid for Israel – A Historical Overview

Abstract

Historical data on US aid to Israel sheds light on the evolving incentives of political leaders and special interests, with a primary focus on Israel. In the initial stages of the alliance, Israel's military capabilities were instrumental in providing valuable services to the USA, countering USSR influence in the Middle East. However, the current state of relations raises questions about mutual national interests.
The alliance appears to be transforming into a tool of control imposed on Israeli-elected politicians by both the US and Israel's special interests. This paper delves into the personal incentives of political actors, offering an explanation for the increasing exploitation of US Aid by special interests in Israel. Despite the aid's diminishing significance and its negative impact on the country's defense capacity due to imposed political conditions, it continues to play a pivotal role.
The presented data supports a reconsideration of the US-Israel alliance. Ceasing US Aid programs for the Middle East could be seen as a strategic move benefiting the defense needs of both countries.
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Keywords: Political conditionality, Special interests, Political leverage

JEL Classification: D74, D78, D72, F35