Debt worries stymieing U.S. financial aid to help Arab nations in transition

U.S. lawmakers not only have shut the door on new spending to stabilize countries rocked by the so-called Arab Spring. They have resisted proposals to shift money from other foreign aid programs.

April 12, 2011|By Paul Richter, Los Angeles Times

"When you're talking about what a superpower can do, you expect big numbers," said Hisham Fahmy, chief executive of the American Chamber of Commerce in Egypt. He said Egyptians compared the offer to the far larger sums that the U.S. spends in Afghanistan, "and they were surprised."

Israel's government fears that economic instability in the region could lead to security threats.

Israel's prime minister, Benjamin Netanyahu, last month called on Washington and its allies to create an economic Marshall Plan to help stabilize Egypt and Jordan. And Israeli President Shimon Peres made a direct plea to President Obama for such economic aid during a White House visit this month.

Stephen McInerney, executive director of the Project on Middle East Democracy, a private research and advocacy group based in Washington, said the U.S. budget crisis has dealt a heavy blow to efforts to help Arab nations struggling to emerge from years of dictatorship.

"If this had happened any other time in the last 15 years, the government would probably have stepped forward with assistance on a far larger scale," he said. "This could have serious consequences for U.S. interests. But there just doesn't seem to be the will to address it."

paul.richter@latimes.com

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