Aid in times of terror

Prabal Roy Chowdhury () and Jaideep Roy
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Prabal Roy Chowdhury: Indian Statistical Institute, New Delhi

Discussion Papers from Indian Statistical Institute, Delhi

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: D04 F50 O12 (search for similar items in EconPapers)
Pages: 32 pages
Date: 2011-07
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