Daijiworld Media Network – Egypt
Egypt, Jun 5: As debt levels swell across the Middle East and North Africa (MENA), several countries find themselves increasingly dependent on foreign aid—often at a steep political and economic cost.
In nations like Jordan and Egypt, borrowing has become more than just a fiscal tool—it has evolved into a geopolitical balancing act. Analysts say these countries, already burdened by weak economies, are often compelled to align their foreign and domestic policies with the interests of donor nations, particularly the United States.
Ryan Bohl, senior MENA analyst at Rane Network, points out that US aid is frequently tied to political agendas, including human rights benchmarks and diplomatic ties with countries like Israel and Iran. “For Jordan and Egypt, where aid forms a significant chunk of the national budget, US assistance is often used as leverage to enforce broader strategic goals,” he notes.
Historically, this influence is evident. In 1994, Jordan’s landmark peace treaty with Israel was significantly swayed by a $700 million debt relief promise from then US President Bill Clinton’s administration, according to a 1999 analysis by the Washington Institute. The agreement came with further commitments from US allies and eased Jordan’s fiscal woes, but also placed its foreign relations under a powerful external lens.
Similarly, Egypt’s 1979 peace accord with Israel, following the Camp David Accords, turned the nation into one of the largest recipients of US aid, receiving nearly $49 billion in military and economic assistance by 2003. Official US records affirm that this aid was provided not only to bolster Egypt’s economy but to solidify the Middle East peace process.
Beyond finances, resources too have come under foreign purview. Jordan—ranked as the second most water-scarce country globally—must consult with both the US and Israel over its own water usage, a consequence of treaties inked in the 1990s.
As these nations walk a tightrope between economic survival and political sovereignty, questions arise about the long-term implications of aid dependency. While foreign funds offer temporary relief, the debt-laden path often comes at the cost of independent decision-making, making true economic stability more elusive than ever.