U.S. financial crisis may impact foreign aid

U.S. financial crisis may impact foreign aid
Democratic Vice-Presidential candidate Joe Biden issued a warning last night that in light of the financial crisis in the United States a Democratic White House come 2009 may have to reassess its earlier promise of doubling foreign aid...

Democratic Vice-Presidential candidate Joe Biden issued a warning last night that in light of the financial crisis in the United States a Democratic White House come 2009 may have to reassess its earlier promise of doubling foreign aid.

Speaking in Saint Louis during the U.S. Vice-Presidential debate, Biden cautioned that a proposed $700 billion bailout of domestic financial institutions may force an Obama-Biden administration to recant on an earlier promise to double the country's commitment to foreign aid.

"Well, the one thing we might have to slow down is a commitment we made to double foreign assistance. We'll probably have to slow that down," responded Biden to a question regarding how the country's current financial woes would impact previously stated policy objectives.

For 2008, the Bush administration submitted a foreign aid budget to Congress requesting $20.27 billion, a 12 percent increase from 2007.

However, given the United States' poor relations with Burma's ruling generals, the amount of money earmarked for 'Burma' in 2008 was relatively small, standing at only $13 million.

The Consolidated Appropriations Act for 2008 appropriates "$13 million

[mostly from Economic Support Funds] primarily for Burmese student groups and other democratic organizations located outside Burma, and for the provision of humanitarian assistance." Thailand-based border groups working with causes related to Burma are anticipated to benefit from approximately $3 million of the allotted aid money.

It is unknown at this time what overall impact, if any, an Obama-Biden administration would have on the amount of U.S. assistance for Burma and Burmese organizations.

Biden, Chairman of the Senate Foreign Relations Committee and author of last year's Burma Democracy Promotion Act, which built on existing banking and travel sanctions directed at Burma's generals, also outlined his criteria in determining when and where the United States should intervene in the affairs of another state.

"The line that should be drawn is whether we 'A', first of all have the capacity to do anything about it," related the Senator from Delaware. "And number two, certain new lines that have to be drawn internationally. When a country engages in genocide, when a country engaging in harboring terrorists and will do nothing about it, at that point that country in my view and Barack's view forfeits their right to say you have no right to intervene at all."

"I don't have the stomach for genocide when it comes to Darfur," Biden went on to tell listeners. Sudan is to receive $140 million in foreign aid according to the 2008 budget.

Biden has a reputation on Capitol Hill of favoring intervention, having voiced his strong support for American forces being sent to the likes of Bosnia, Kosovo, Iraq, Pakistan and Sudan.

The foreign policy segment of Thursday night's debate focused heavily on the Middle East, Iraq, Afghanistan and Iran, Burma never being mentioned by name.

Though Iraq currently eats up the largest chunk of U.S. foreign assistance, historically the top two recipient posts have been dominated by Israel and Egypt. For 2008, Israel is earmarked to receive $2.4 billion, all of it in the form of military aid.

Foreign aid itself is but a small component of the national budget, which stands just shy of $3 trillion.