US Assistance, Development, and Hierarchy in the Middle East Aid for Allies Anne Mariel Zimmermann US Assistance, Development, and Hierarchy in the Middle East Anne Mariel Zimmermann US Assistance, Development, and Hierarchy in the Middle East Aid for Allies Anne Mariel Zimmermann Zurich, Switzerland ISBN 978-1-349-94999-1 ISBN 978-1-349-95000-3 (eBook) DOI 10.1057/978-1-349-95000-3 Library of Congress Control Number: 2016961643 © The Editor(s) (if applicable) and The Author(s) 2017 This work is subject to copyright All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed The use of general descriptive names, registered names, trademarks, service marks, etc in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made Cover image © Peter Scholey / Alamy Stock Photo Printed on acid-free paper This Palgrave Macmillan imprint is published by Springer Nature The registered company is Nature America Inc New York I dedicate this book with affection to my husband, Doron Zimmermann, whose provocative questions, generosity of knowledge, and strength struck me from day one—and without which this book would not exist Acknowledgments As with any journey that occupies nearly a decade of one’s life, this book is not only the work of its author but also of mentors, friends, family, and benefactors who have helped along the way I completed a narrower version of this project at the University of Virginia, where my interest in theoretical anomalies led me to write a doctoral dissertation on US assistance and state building in Egypt, Jordan, South Korea, and Taiwan My dissertation advisor and teacher, David Waldner, provided critical advice in this initial stage of my work, and encouraged me to look more deeply into the concept of parallel institutions Herman Schwartz was a source of kindness and wisdom, and Bill Quandt made my field research in Egypt logistically possible I am grateful to the Council of American Overseas Research Centers/American Center of Oriental Research, the US–Egypt Binational Fulbright Commission, and the Miller Center GAGE Program for supporting my fieldwork in Amman, Cairo, and Washington, DC As an assistant professor at Wesleyan University, I was inspired to expand the thematic scope of this book to international hierarchy, as well as to limit its regional focus to the Middle East by taking on the well- documented yet complex case of US assistance to Israel I am grateful to Wesleyan and the Project on Middle East Political Science for supporting my additional research in the Middle East and at the National Archives in College Park David Lake, Stephen Krasner, and John Owen offered early comments on my joint effort with Sean Yom to operationalize international hierarchy, the framework of which informs part of this book I am also grateful to the Center for Global Development, the Harvard Middle vii viii Acknowledgments East Politics Workshop, the Northeast Middle East Politics Workshop, the University of St Gallen, Brown University, the New America Foundation, and the Center for Strategic and International Studies for allowing me various opportunities to present my research From our initial meeting as graduate students, Sean Yom has shared his intelligence, drive, and friendship with me, allowing our mutual research interests to develop into a fruitful and diverse collaboration and dialogue Marwan Kardoosh generously shared his deep understanding of Jordanian politics and economy In addition, I am indebted to the colleagues who have read and commented on various stages of my work: Jason Brownlee, Amaney Jamal, Jillian Schwedler, Melanie Cammett, Ellen Lust, Pete Moore, Lisa Blaydes, Erin Snider, Stefanie Nanes, David Faris, John Waterbury, David Patel, Tarek Masoud, Hilde Restad, Kyle Lascurettes, Ryan Saylor, André Bank, and Michael Shalev In the field, my friends Yorke Rowan, Morag Kersel, and Heather Badamo were not only fantastic company but gifted me with a hobbyist’s interest in Mediterranean history and archaeology I am also grateful to the dozens of individuals who granted me interviews, opened their Rolodexes, and gave me critical feedback on nascent hypotheses Several deserve to be mentioned by name, and will know that this omission reflects their own wishes rather than the gratitude I hold toward them My family provided me with the inspiration to study political science, as well as the reminder that, while theoretical simplicity may be elegant, it is the real world that is the most beautiful Kaye Thompson Peters and Jeffrey Wallin Peters gave me the opportunities of a good education, travel, debate, and newsroom humor, while Jean Hartsock Peters, Gordon Sikes Peters, and Berniece Ault demonstrated the importance of giving back to others with all means available My sisters, Sarah and Emily Peters, never let me stray too far from the joys of our childhood, and Yaël and Faye Zimmermann have been generous enough to share theirs with me Erich Zimmermann, Anna Maria Wehrli, Anna Pfeiffer, Donatella RichtmanCinquini, and Daniel Richtman showed me new levels of strength and persistence, and provided the warmth of family far from home Nebel the Cat was, as ever, a pleasant companion in the office The opinions herein are my own personal views, and not represent those of my employer or its staff All errors are my own Contents What Does US Aid “Buy” in the Middle East? 1 Aid and the Logic of Political Survival 19 Part I Israel39 Non-distributive Survival Strategy 41 Origins of US Aid to Israel 61 US Aid to Israel: Developmental Bargain 83 Part II Jordan103 Distributive Survival Strategy 105 Origins of US Aid to Jordan 125 ix x Contents US Aid to Jordan: Geopolitical Bargain 147 Part III Egypt163 9 Hybrid Survival Strategy 165 10 Origins of US Aid to Egypt 183 11 US Aid to Egypt: Illusive Bargains 207 12 Conclusion 225 Bibliography 235 Index265 List of Figures Fig 1.1 US economic and military aid obligations as constant 2014 dollars, 1951–2010 (USAID, US Overseas Loans)4 Fig 1.2 US economic and military aid obligations as percent GDP, 1960–2009 (USAID, US Overseas Loans; World Bank, World Development)4 Fig 2.1 Skew of hierarchical dyads 35 Fig 5.1 Aspects of the budget of the Government of Israel, 1960–2009 (Author’s calculations based on budget and GNP data from World Bank, World Development; aid data from USAID, US Overseas Loans; and budget data from Bank of Israel, “Table 6.A.1(1);” Bank of Israel “Table 6.A.2(1).”)85 Fig 5.2 Aspects of the defense budget of the Government of Israel, 1960–2009 88 Fig 5.3 Exchanges of the US–Israel hierarchy, 1955–2010 91 Fig 8.1 Aspects of the budget of the Government of Jordan, 1965–2010 (Author’s calculations based on budget and GNI data from World Bank, World Development and Heston et al, Penn World; budget data from Annual Statistical Series; aid data from USAID, US Overseas Loans)149 Fig 8.2 Exchanges of the US–Jordan hierarchy, 1952–2010 157 Fig 11.1 Exchanges of the US–Egypt hierarchy, 1955–2010 217 xi BIBLIOGRAPHY 259 ——— 2004a Jordan’s Finance Minister Discusses IMF Visit, Iraqi Assets, and Cabinet Budget Maneuvers, June http://wikileaks.org/cable/2004/06/ 04AMMAN4670.html ——— 2004b Jordan’s Finance Minister on Debt and Oil Prices; Asks for Help with the Paris Club, September http://wikileaks.org/ cable/2004/09/04AMMAN7403.html ——— 2004c Jordan’s Economic Reforms After Five Years: Keeping the Financial House in Order (Part 1), 22 November http://wikileaks.org/cable/ 2004/11/04AMMAN9311.html ——— 2004d RE: Transparency of Budgets/Military Spending, 24 November http://wikileaks.org/cable/2004/11/04AMMAN9370.html ——— 2004e Tales of Corruption Circulate Around Amman, 12 July http:// wikileaks.org/cable/2004/07/04AMMAN5784.html ——— 2005a GOJ to Partially Eliminate Fuel Subsidies July 9, July http:// wikileaks.org/cable/2005/07/05AMMAN5451.html ——— 2005b Jordan Prepares a Tough Budget for 2006, 22 Nov http:// wikileaks.org/cable/2005/11/05AMMAN9036.html ——— 2005c Jordan’s Tax Reform: A Protracted Turn in the Right Direction, 29 December http://wikileaks.org/cable/2005/12/05AMMAN9954.html ——— 2005d Offer to Facilitate Jordan’s CSF Claims, 13 January http:// wikileaks.org/cable/2005/01/05AMMAN326.html ——— 2006a Jordan’s Partial Privatization of Phosphate Company Opens Door to Investment Dollars From Brunei, 22 March http://wikileaks.org/ cable/2006/03/06AMMAN2073.html ——— 2006b Pillars of Jordan’s Hashemite Rule: The Tribes, June http:// wikileaks.org/cable/2006/06/06AMMAN4030.html ——— 2009a Aqaba’s Economy Treading Water Amid Credit Crunch, Apr http://www.cablegatesearch.net/cable.php?id=09AMMAN834 ——— 2009b Jordan’s Tax Revenues Increase in 2009, but 2010 Projections Look Grim, 25 November http://wikileaks.org/cable/2009/11/09AMMAN2572 html ——— 2009c Jordanian Finance Minister Advocating for Significant Tax Reforms as Alternative to Proposed Stimulus Package, 18 March http:// wikileaks.org/cable/2009/03/09AMMAN703.html ——— 2009d Royal Decree Delays Opening of Jordan’s Parliament by Two Months, 17 September http://wikileaks.org/cable/2009/09/09AMMAN 2143.html US Embassy Cairo 2002a Ambassador Discusses ESF Reprogramming and MEPI with [name blank], December Released to author via Freedom of Information Act, June 17, 2010, Case No 200802317 NEA ——— 2002b Egypt’s New Money Laundering Law: Walking the Walk on Terrorist Financing, June Released to author via Freedom of Information Act, June 17, 2010, Case No 200802317 NEA 260 BIBLIOGRAPHY ——— 2002c USAID-Egypt Program Review, 27 October Released to author via Freedom of Information Act, June 17, 2010, Case No 200802317 NEA ——— 2002d USAID/Egypt Program Review- Response to Request for Additional Information, 13 November Released to author via Freedom of Information Act, June 17, 2010, Case No 200802317 NEA ——— 2005a Egypt: Banking Sector Reform Update, 10 August http:// wikileaks.org/cable/2005/08/05CAIRO6171.html ——— 2005b Egypt’s New Tax Law, 21 August http://wikileaks.org/ cable/2005/08/05CAIRO6419.html ——— 2005c Next Steps on Democracy in Egypt, 12 September wikileaks.org/ cable/2005/09/05CAIRO7045.html ——— 2005d PDAS Liz Cheney’s September 28 Meeting With Gamal Mubarak, 11 October wikileaks.org/cable/2005/10/05CAIRO7782.html ——— 2005e Surprises in Egypt’s Banking Sector, 29 September http:// wikileaks.org/cable/2005/09/05CAIRO7548.html ——— 2005f Taking Stock Of Egypt’s Elections, December wikileaks.org/ cable/2005/12/05CAIRO9100.html ——— 2005g The Sound and the Fury of Egypt’s Reaction to Usg Direct Funding of Democracy Grants, 31 March http://wikileaks.org/ cable/2005/03/05CAIRO2524.html ——— 2006a Nazif Slows Down Egypt’s Privatization Program, November http://www.cablegatesearch.net/cable.php?id=06CAIRO6653 ——— 2006b Restructuring ESF Assistance to Egypt: US Delegation Pushes GOE to Develop New Proposals, 27 March wikileaks.org/cable/2006/03/ 06CAIRO1885.html ——— 2007a Banque Du Caire Privatization Postponed, July w ikileaks.org/ cable/2008/07/08CAIRO1370.html ——— 2007b Egypt Signs Letter of Request for Border Equipment, December wikileaks.org/cable/2007/12/07CAIRO3370.html ——— 2007c Egypt’s FY 2009 ESF: Proposed Budget for D&G, December http://www.aftenposten.no/spesial/wikileaksdokumenter/article4008819.ece ——— 2007d Egyptians React Sharply to ESF Reduction, 29 August wikileaks org/cable/2007/08/07CAIRO2670.html ——— 2008a Addressing MIC’s Objections to D&G Funding for ‘Unregistered’ NGOs, 28 February http://www.aftenposten.no/spesial/wikileaksdokumenter/article4008828.ece ——— 2008b Central Auditing Agency Criticizes GOE Budget Management, 21 January http://www.scoop.co.nz/stories/WL0801/S00397/cablegate- central-auditing-agency-criticizes-goe-budget-management.htm ——— 2008c Nazif Affirms Importance of ESF, Pledgest [sic] Continued Reform and Downplays New Media Law, 25 September http://www.telegraph.co.uk/ news/wikileaks-files/egypt-wikileaks-cables/8327034/NAZIF-AFFIRMS- BIBLIOGRAPHY 261 IMPORTANCE-OF-ESF-PLEDGEST-CONTINUED-R EFORM-A NDDOWNPLAYS-NEW-MEDIA-LAW.html ——— 2009a A New Approach to Egypt’s ESF, 26 Febuary http://www.aftenposten.no/spesial/wikileaksdokumenter/article4008848.ece ——— 2009b GOE Proposes New Model for Economic Assistance, September http://www.telegraph.co.uk/news/wikileaks-files/egypt-wikileaks- cables/8327201/GOE-PROPOSES-NEW-MODEL-FOR-ECONOMICASSISTANCE.html ——— 2009c Request for Guidance on GOE Economic Assistance Proposal, September http://www.telegraph.co.uk/news/wikileaks-files/egypt-wikileaks- cables/8327200/REQUEST-FOR-GUIDANCE-ON-GOE-ECONOMICASSISTANCE-PROPOSAL.html US Embassy Tel Aviv JEDG – Privatization P 081311Z DEC 97, Central Foreign Policy Records, US Department of State Released to author via Freedom of Information Act, June 27, 2012, Case Number F-2011-25890 US Embassy Tel Aviv JEDG ’97 – U.S to Israel: Stay the Course R 131320Z FEB 98, Central Foreign Policy Records, US Department of State Released to author via Freedom of Information Act, June 27, 2012, Case Number F-2011-25890 US Embassy Tel Aviv JEDG Preparations: Privatization R 270901Z AUG 93, Central Foreign Policy Records, US Department of State Released to author via Freedom of Information Act, June 27, 2012, Case Number F-2011-25890 US Embassy Tel Aviv Joint Economic Development Group Meeting, 30–31 July 1990, Israel R 131313Z AUG 90, Central Foreign Policy Records, US Department of State Released to author via Freedom of Information Act, June 27, 2012, Case Number F-2011-25890 US Embassy Tel Aviv 2007 DAS Danin AND DASD Kimmitt Discuss Gaza Smuggling with Isa Chief Diskin November http://www.telegraph.co.uk/ news/wikileaks-files/8314448/DAS-DANIN-AND-DASD-KIMMITT- DISCUSS-GAZA-SMUGGLING-WITH-ISA-CHIEF-DISKIN.html Accessed 27 May 2013 US Embassy to Israel 1985, June 2–4 US-Israel Joint Economic Development Group Meeting In Jerusalem O 121623Z JUN 85, Central Foreign Policy Records, US Department of State Released to author via Freedom of Information Act, June 27, 2012, Case Number F-2011-25890 US Assistance for Israel in FY 1973 AID 10 Supporting Assistance 1973; Records Related to Israel and Arab-Israel Affairs, 1951–1976; Bureau of Near Eastern and South Asian Affairs, Office of Israel and Arab-Israel Affairs, 1951–1976; General Records of the Department of State, Record Group 59; National Archives II Building, College Park, MD US Assistance to Israel 1972, July 18 AID: General Policy Plans Coordination 1972; General Records of the Department of State, Record Group 59; National Archives II Building, College Park, MD 262 BIBLIOGRAPHY US Proposes to Sell $438 Million of Arms to Jordan, Others 1977 The Wall Street Journal, April 26 USG Aid to Israel 1973, September AID General Reports and Statistics 1974, Public Administration Irrigation and Soil Res Deputy Director of Operations Office of Near East and S. Asia Ops Administration Office, Near East Central Files, Israel Project Files, 1953-59, Records of the US Foreign Assistance Agencies, 1948-61, Record Group 469 National Archives II Building, College Park, MD Vatikiotis, P.J 1967 Politics and the Military in Jordan: A Study of the Arab Legion, 1921–1957 London: Frank Cass and Co Ltd ——— 1980 The History of Egypt From Muhammad Ali to Sadat Baltimore: The Johns Hopkins University Press Wade, Robert 1990 Governing the Market: Economic Theory and the Role of Government in East Asian Industrialization Princeton: Princeton University Press Wahba, Abdel Latif, and Dahlia Kholaif 2012 Egypt Targets $2 Billion Income From Selling Land to Expatriates Bloomberg, March 21 http://www.bloomberg.com/news/2012-03-21/egypt-targets-2-billion-income-from-selling- land-to-expatriates.html Waldner, David 1999 State Building and Late Development Ithaca: Cornell University Press ——— 2012 Process Tracing and Causal Mechanisms In The Oxford Handbook of Philosophy of Social Science, ed Harold Kincaid, 65–84 New York: Oxford University Press Walsh, Edward 1982 Israel Announces Plans for 20 Settlements: Israel Discloses Expansion Plans For 20 West Bank Settlements The Washington Post, November Ward, Richard 1966 Focus in Jordan Agriculture Land Economics 42(2): 189–194 Water and Wastewater Sector Assessment in Jordan 1988 Wash Field Report No 244 Arlington, VA: Water and Sanitation for Health Project, October Water, Resources, and Environment Office 2007 US Agency for International Development Support to Jordan in the Water and Water Management Sector Delivered to author by e-mail on March 13 Waterbury, John 1983 The Egypt of Nasser and Sadat: The Political Economy of Two Regimes Princeton: Princeton University Press ——— 1985 The “Soft State” and the Open Door: Egypt’s Experience with Economic Liberalization, 1974–1984 Comparative Politics 18(1): 65–83 ——— 1993 Exposed to Innumerable Delusions: Public Enterprise and State Power in Egypt, India, Mexico, and Turkey New York: Cambridge University Press Weinbaum, Marvin G 1986 Egypt and the Politics of US Economic Aid New York: Westview Press BIBLIOGRAPHY 263 Weinraub, Bernard 1982 Senate Panel Backs Grant Aid for Israel The New York Times, May 26 Weissbrod, Lilly 1983 Economic Factors and Political Strategies: The Defeat of the Revisionists in Mandatory Palestine Middle Eastern Studies 19(3): 326–344 Welch, David 2002 Nomination for Herbert Salzman Award for Excellence in International Economic Performance, March 11, 2002 Released to author via Freedom of Information Act, June 17, 2010, Case No 200802317 NEA Werr, Patrick 2012 MIDEAST MONEY-Egypt Relies on C.bank to Finance Growing Deficit Reuters, July 25 http://in.reuters.com/article/2012/07/25/ egypt-economy-idINL6E8IGEMG20120725 Who is EFSA? Egyptian Financial Supervisory Authority http://www.efsa.gov eg/content/IFIE/about_efsa.html Accessed Apr 2013 Wisner, Frank 1998 Interview with Frank Wisner Washington, DC: The Foreign Affairs Oral History Collection of the Association for Diplomatic Studies and Training Woo-Cumings, Meredith, ed 1999 The Developmental State Ithaca: Cornell University Press Woo, Jung-en 1991 Race to the Swift New York: Columbia University Press Working Group on Egypt 2010a A Letter to Secretary Clinton from the Working Group on Egypt, April http://www.carnegieendowment.org/publications/ index.cfm?fa=view&id=40535 ——— 2010b A Second Letter to Clinton from the Working Group on Egypt, May 11 http://carnegieendowment.org/publications/index.cfm?fa=view&id= 40785&solr_hilite=Working+Group+Egypt ——— 2010c Egypt’s Parliamentary Elections: A Statement from the Working Group on Egypt, November 30 http://carnegieendowment.org/publications/index.cfm?fa=view&id=42043&solr_hilite=Working+Group+Egypt Working Group on Egypt Meets with NSC Staff 2010 Carnegie Endowment for International Peace, November http://www.carnegieendowment.org/publ ications/?fa=view&id=41860 Working Group on Question of Possible Economic and Financial Pressures on Israel and the Arab States 1969, September Contingency Study: Annex on Leverage, AID 151-Food for Freedom, 1968 to E2 Contingency Study- Annex on Leverage, 1969, Records Relating to Israel and Arab-Israel Affairs, 1951- 1976, Bureau of Near Eastern and South Asian Affairs, Office of Israel and Arab-Israel Affairs, General Records of the Department of State, Record Group 59 National Archives II Building, College Park, MD World Bank 2012 World Development Indicators http://data.worldbank.org/ indicator Accessed 12 Oct 2012 ——— 2013 Worldwide Governance Indicators http://info.worldbank.org/ governance/wgi/ Accessed Apr 2013 264 BIBLIOGRAPHY Yano, Makoto, and Jeffrey B. Nugent 1999 Aid, Nontraded Goods, and the Transfer Paradox in Small Countries The American Economic Review 89: 431–449 Yom, Sean 2015 From Resilience to Revolution: How Foreign Interventions Destabilize the Middle East New York: Columbia University Press Zaalouk, Malak 1989 Power, Class, and Foreign Capital in Egypt: The Rise of the New Bourgeoisie London: Zed Books Zanotti, Jim 2010 Hamas: Background and Issues for Congress Washington, DC: Congressional Research Service Zimmermann, Anne Mariel 2013 State as Chimera: Aid, Institutions, and State Power Comparative Politics 45(3): 335–356 Zimmermann, Anne Mariel, and Sean Yom 2014 International Hierarchy: Sovereignty and Order in the Modern World Unpublished manuscript Index1 A Abdullah II of Jordan, 113, 125, 137–9, 160 Abdullah I of Jordan, 106, 109, 125, 156 Abu Hammour, Muhammed, 113, 114 Abu Nuwar, Ali, 128, 129 Airborne Warning and Control Systems (AWACS), 71, 192, 228 al-Beblawi, Hazem, 221 al-Dahabi, Muhammed, 118 Ali, Muhammed, 166 al-Khatib, Anwar, 128 al-Majali, Habis, 110 al-Majali, Hazza, 110 al-Mulqi, Fawzi, 128 al-Nabulsi, Suleiman, 110, 129 al-Rifai, Samir, 111, 130 al-Tabaa, Sabri, 108 Aqaba Development Corporation (ADC), 142, 151, 154 Special Economic Zone (ASEZ), 115, 118, 141, 142, 150–2, 155 Special Economic Zone Authority (ASEZA), 141, 142, 150–5, 158 Water Company, 151 Arab-Israeli War, 43, 45, 62, 108, 119 Arab League, 133, 187 Arab socialism, 125 Arab Spring protests in Egypt, 166, 202, 220 in Jordan Aridor, Yoram, 49 Atherton, Alfred, 69, 180n31, 203n18 Awadallah, Bassem, 113 B Baker, James, 93 Balfour Declaration, 42 Note: Page numbers with “n” denote endnotes © The Editor(s) (if applicable) and The Author(s) 2017 A.M Zimmermann, US Assistance, Development, and Hierarchy in the Middle East, DOI 10.1057/978-1-349-95000-3 265 266 INDEX Barak, Ehud, 93 Barbour, Walworth, 67, 79n24 Begin, Menachem, 44, 49, 50, 62 Ben Gurion, David, 42–5, 94 Berglas, Eitan, 50, 57n38, 62, 73, 86, 100n1 bin Talal, Hassan, 134 Boutros Ghali, Youssef, 174, 175, 210 Bruno, Michael, 50, 57n34, 57n53, 58n67, 58n69, 58n79, 62, 73, 96 Bush, George H.W., 76, 96, 135 Bush, George W., 77, 138, 199, 200 democracy and governance agenda, 15, 196–8, 219 business associations Egypt, 136, 193 Jordan, 142, 151, 153 C Carter, Jimmy, 70, 93, 186, 187, 191 Central Intelligence Agency (CIA) General Intelligence Directorate, 132 Iran, 94, 227, 228 Operation NOBEEF, 129 Chung-Hee, Park, 230 client states, 12 Clinton, Bill, 93, 137, 217 Clinton, Hillary, 93 Cohen Orgad, Yigal, 49, 73 Cold War US-Latin America relations, 231, 232 US-Middle East relations, 13, 198, 232 Cranston, Alan, 71, 77, 87 D Drischler, Alvin, 71 Dulles, John Foster, 126, 128–30 Dutch Disease, 8, E East Ghor Canal, 120, 131, 134 Eban, Abba, 94 Economic Support Funds (ESF), 65, 70, 71, 75, 77, 133, 135, 160, 187, 194, 197, 199–202, 219 Egypt Arab oil exporters, 5, 186 Arab Socialist Union (ASU), 169 Arab Spring, 166, 202, 208, 220 British occupation of, 3, 34, 165, 215, 233 civil service, 166, 168, 170, 173, 175, 202, 213 Corrective Revolution, 169 1952 coup, 167, 184 Khedivial rule, 165 relations with Jordan, 110, 131, 177, 183, 222 Soviet Union, 136, 168, 185, 186, 216 Egypt, Central Bank of, 178, 195, 196, 212, 221 Egypt, economy of agriculture, 190, 191, 227 bureaucracy, 2, 5, 10, 83, 110, 166, 168–71, 175, 177, 179, 183, 184, 187, 194, 209, 210, 212 capital markets, 173, 175, 176, 178, 188, 193 civil service, 166, 168, 170, 173, 175, 202, 213 defense industries, 78, 172 economic crisis, 173 economic reform, 2, 61, 172, 174, 184, 191, 192, 195, 196, 201, 202, 208, 209, 213, 214, 219, 220, 226 financial sector, 169, 174, 179, 195 IMF agreements, 173, 221 Infitah, 169–72 INDEX infrastructure, 2, 8, 11, 187–91, 202, 209, 210, 212, 214–16, 222 land reform, 167 nationalizations, 227 pockets of efficiency, 21, 26, 172, 179, 220, 226 science and technology, 61 sovereign debt, 10, 177, 211 state-owned enterprises (SOEs), 168–70, 173, 176, 193, 195 subsidies, 9, 170, 172–4, 176, 200, 209, 212, 220, 221, 226, 228 taxes, 166, 167, 169, 170, 172–6, 178, 196, 208, 209, 211, 212, 223, 226 technical units, 172, 175, 176, 178, 179, 184, 196, 210, 213, 219, 220 Egyptian military Free Officers, 167, 183–5 Gaza border, 2, 200, 215, 218 industries, 89 Supreme Council of the Armed Forces (SCAF), 221–3 Egypt, political trends Egyptian Islamic Jihad, 172, 178 gama‘at islamı̄yah, 171 Islamic Action Front (IAF), munfatihūn, 170–2, 174, 176, 211 Nasserists, 169 National Democratic Party (NDP), 2, 169, 174, 175, 178, 198, 217 Old Guard, 174, 175, 178, 184, 198, 209, 210, 213, 217, 226 reformers, 15, 16, 171–6, 179, 184, 193–6, 198, 202, 208–11, 213, 217, 219, 220, 226 takfı̄r wa hijrah, 172 Eshkol, Levi, 46, 64, 94 267 F fee tade areement (FTA), US Egypt, 199, 214 Israel, 92 Jordan, 113, 142, 155, 158, 159 First World War, 10, 42, 106 Fischer, Stanley, 57n50, 58n59, 58n66, 58n68, 72–4, 76, 80n61, 80n66 Ford, Gerald, 72, 96, 186 Foreign Military Financing (FMF) Egypt, 78, 89, 190, 194, 200 Israel, 66, 67, 69, 70, 72, 75, 77, 78, 87, 89 Jordan, 135, 139, 156, 160 G Glubb, John Bagot, 107, 108, 110, 122n8 Great Britain Baghdad Pact, 110, 157 Egypt, 10, 184 Iraq, 3, 10, 126 Jordan, 108, 125, 126, 129 League of Nations mandates, 10 Transjordan, 10 US relations, 108, 126, 184, 185 H Haganah, 43, 44 Hamas, 199, 217 Hashemite family Iraq, 132 Jordan, 14, 105–10, 113, 125, 128, 135, 138, 143, 147–9, 159, 207, 229, 233 Sharifian solution, 106 Transjordan, 10, 105–9, 111, 112, 121n1, 154, 156 Histadrut, 43–5, 48–52, 62, 86 268 INDEX Hussein I of Jordan, 109–13, 125, 128–38, 157, 160 Hussein, Saddam, 135, 158, 229 I incumbent survival strategy(ies), 15, 16, 19–21, 35, 56, 226, 233 international hierarchy, 12, 13, 30–4 International Monetary Fund, 36 Iran revolution, US aid, 1, 3, 227, 228 Iraq First Gulf War, 135, 136, 158, 191, 216 Hashemite monarchy, 116, 125, 128, 132, 138 relations with Jordan, 3, 106, 112, 119, 126, 132, 133, 136, 139, 147, 158 Second Gulf War, Ismail, Khedive, 166–7, 188 Israel founding of, 56 immigration, 43, 45 nuclear program, 94 Palestinian Territories, 3, 47, 55, 77, 93 Israel, Bank of, 52, 62, 72, 75, 84–6, 91, 92, 98 Israel Defense Forces (IDF), 44, 45 Israel, economy of budget, 52, 69 civil service, 41, 44, 45, 49, 111 defense industries, 54, 76, 78, 89, 99 economic crisis, 1984–1985, 50 economic reform, 61, 62, 74 inflation, 49, 51, 52, 67, 72 infrastructure, 41, 45, 46, 63, 96 privatization, 52, 53, 90 salaries, 51, 52, 85 science and technology, 52, 61, 76, 91 sovereign debt, 177 subsidies, 9, 46–50, 53, 85–7 taxes, 41, 45–9, 51, 54, 65, 85, 86 Israel lobby, 7, 34, 79, 96–8 Israel, political trends Herut, 46, 48, 49 Labor, 41–4, 46, 48–51, 53, 62, 63, 78, 86 Labor/Alignment, 46, 62, 63, 78 Labor Zionism, 42, 53 Liberals, 46, 48 Likud, 41, 48–50, 52, 53, 62, 70, 78, 83, 86 Mapai, 42–6, 54, 62, 63, 78, 233 Revisionists, 42, 43 Unity governments, 28, 46, 51, 54, 62, 78, 86, 99 Israel, US aid requests Blue Paper, 64, 66 Orange Paper, 65 Pink Paper, 67 J Johnson, Lyndon B., 64, 94, 96, 130, 186 Joint Economic Development Group (JEDG), 73–6, 86, 90 Jordan Arab oil exporters, 5, 133, 186 coup attempts, 110, 129 founding of, 140 General Intelligence Directorate, 132 merchants, 119 Ministry of Planning, 113, 139, 140 National Agenda, 113, 114 parliament, 110, 111, 113, 117, 128 population, 120 INDEX refugees, 108–12, 148 riots, 1989, 113 Royal Court, 132 Soviet Union, 130, 136, 186 tribes, 106–9, 113, 114, 116, 149, 153, 154, 158 West Bank, 47, 48, 55, 64, 93, 108–11, 119, 121n1, 128, 130, 132, 136 Jordan, Central Bank of (CBJ), 110, 112, 119, 120 Jordan, economy of Amman Stock Exchange, 112, 142, 153 civil service, 111, 114, 117, 134, 142, 149 defense industries, 78 East Bank, 105, 110, 111, 121n1, 127, 128 economic crisis, 1989, 121, 135 economic reform, 113, 125, 138 infrastructure, 63, 119, 121, 127, 128, 134, 137, 141, 143, 147, 149, 150, 154, 155, 158, 189 land reform, 111 remittances, 112 salaries, 110, 112, 114, 117–19, 131, 149–51, 153, 160, 177 science and technology, 61 sovereign debt, 177 subsidies, 112, 113, 116, 117, 161, 177, 228 taxes, 106–8, 110, 111, 114–18, 140, 143, 148, 150, 153, 156, 208, 209, 211 Jordanian National Movement (JNM), 109 Jordan, military of Arab Legion, 107–9, 157 Desert Patrol Force, 107 Jordan Valley, 108, 110–12, 120, 121, 131, 134, 137, 154, 155 269 Jordan Valley Authority (JVA), 120, 134, 140, 154, 155 Jordan, water Aqaba Water Company, 151 Central Water Authority, 120, 131 Ministry of Water and Irrigation (MWI), 120, 141, 154 tariffs, 121, 141 US aid, 125–45, 147–62 Water Authority of Jordan (WAJ), 120, 121, 131, 154 K Kennedy, John F., 94, 130, 132, 185, 232 Kessar, Yisrael, 51 Kissinger, Henry, 64, 68, 69, 194, 218, 224n30 L Langmaid, Bradshaw, 65 Latin America, US policy toward, 6, 7, 73, 214, 231, 232 Lavi jet arms sales, 50, 84, 95 development, 72, 89, 95 termination, 95 US support, 50, 72, 89, 95 Lebanon, 3, 10, 49, 51, 71, 90, 93, 96, 99, 112, 116, 132 Lloyd, Selwyn, 129, 154 M major non-NATO allies (MNNA), 77, 135, 191 Mallory, Lester, 128, 129, 144n19 Mansour, Muhammed, 175 Marto, Michel, 113 Matter, James, 65 270 INDEX McCracken, Paul, 72 methodology congruence testing, 19, 35 Mill’s Methods, 34 process tracing, 19, 35 Middle East Supply Center, 108 Mizrahi Jews, 41, 45 Mohieddin, Mahmoud, 174 Morsi, Muhammed, 221, 222 Muasher, Marwan, 113 Mubarak, Gamal, 171–6, 198–202, 207–13, 216, 218–21, 225, 226 Mubarak, Hosni, 2, 5, 14–16, 28, 165, 166, 171–9, 190–2, 196, 197, 219 N Nazif, Ahmed, 175, 176, 178, 181n57, 195, 200, 205n95, 210, 213–15, 219 Neeman, Ya’acov, 76 Netanyahu, Benjamin, 53, 76, 77, 194 Nixon, Richard, 64, 66, 69, 72, 186 Non-Proliferation Treaty (NPT) Israel, 94, 96 North Atlantic Treaty Organization (NATO), 160, 227 O Obama, Barack, 93, 160, 162n28, 200 O’Connell, Jack, 132, 144n37 October War, 46, 62, 68–72, 183, 186 Operation Bright Star, 192 Ottoman Empire Egypt, 10, 166 governance of Transjordan, 10, 105, 106 partition of, 42, 166 P Palestinians Black September conflict, 112 Jordan, 109, 110, 112, 113, 116, 118, 122n17, 127, 128, 143, 154 Palestinian Liberation Organization (PLO), 111, 112, 116, 130, 132, 133, 149 refugees, 120, 126, 128, 130, 154 West Bank, 109, 110 Palmach, 43, 44 parallel institutions causes of, 134, 152, 217 definition of, 14 in Egypt, 14, 28, 61, 189, 196, 208, 210, 211, 213–15, 217–20, 225, 226, 228 in Jordan, 14, 61, 126, 148, 149, 152, 154, 155, 157–9, 189, 208, 211, 215, 220, 225, 228 Paris Club Egypt debt, 117, 166, 190, 191 Jordan debt, 117, 151 peace dividend land for peace, 68 3:2 ratio, 70 peace process Camp David, 93, 134, 135 shuttle diplomacy, 69 Sinai agreements, 70 Percy, Charles, 71 Peres, Shimon, 50–2, 62, 73–6, 78, 83, 86, 90 Point Four, 63, 127, 128, 131 Public Debt Commission, 166 Q Qualifying Industrial Zones (QIZs) Jordan, 114, 158 INDEX R Rabin, Yitzhak, 47, 51, 52, 64–6, 76, 94 Rachid, Rachid Muhammed, 175, 210 Reagan, Ronald, 62, 71, 73, 74, 85, 86, 93, 96, 97, 192 Rhee, Syngman, 230 Ricciardone, Francis, 199 Rogers, William, 36n10, 68 Roosevelt, Franklin D., 231 Roosevelt, Kermit, 129 Rusk, Dean, 94 S Sadat, Anwar assassination, 192, 216 power struggle with Nasserists, 169, 170 rapprochement with Israel, 186 relationship with Islamists, 172 US presidential security, 187 Salem, Bassem, 115 Sapir, Pinhas, 66, 68 Saudi Arabia aid to Egypt, 191, 222, 223 aid to Jordan, 130, 132, 133, 160, 161 US aid, 1, 9, 71, 130, 132, 133, 160, 161, 191, 222, 223, 229 US military basing, 1, 132, 229 Scobey, Margaret, 199 Second World War, 3, 13, 229, 231 Middle East Supply Center, 108 Security Supporting Assistance (SSA), 65–7, 69, 70 Shamir, Yitzhak, 52 Sharon, Emmanuel, 73 Shultz, George, 72–5, 86 side payments, 20, 44, 105, 165, 169, 170 Sinai Peninsula 271 border security, 200, 215 Israeli withdrawal, 64 Sisco, Joseph, 67, 69 Six Day War, 46–8, 62, 64, 79, 111, 128, 132, 158, 169, 183, 186 South Korea, 9, 95, 230 Soviet Union, 1, 13, 67, 76, 130, 136, 168, 185, 186, 216 states despotic power, 8, 22–4, 25, 29, 53, 54, 85–6, 90, 116, 148–52, 208–10 developmental capacity, 8–11, 13–16, 19, 22–6, 28–9, 34, 83–90, 105, 113, 147–56, 159, 171, 176–8, 207, 208, 220, 226, 231 developmental state, 21, 25, 230 infrastructural power, 8, 15, 22–6, 28, 29, 56, 86, 87, 148, 152–6, 159, 207, 210, 211, 213, 215, 220 rentier state, 9, 84, 85, 221 sovereignty, 5, 12, 13, 16, 98, 225 state formation, 9, 35 Stein, Herbert, 72–5 Suez Canal, 2, 169, 170, 172, 185, 186, 188, 216 Suez War, 96, 128, 168 T Turkey Egypt relations, 2, 70, 175, 222 US relations, 2, 6, 65, 70, 129, 175, 222 U United Arab Republic (UAR), 130 United Nations (UN), 95, 109, 185 voting patterns, 12 272 INDEX United Nations Relief and Works Agency (UNRWA), 109, 126–8, 143, 154 USAID Inspector General, 140 US Arms Export Control Act, 95 US Congress Brooke Amendment, 190 Cranston Amendment, 71, 77, 87 Egypt aid, 5, 61, 183–205, 207–24 Egypt civil society organizations, 197 Egypt-Israel peace negotiations, 135 Israel aid, 36, 72, 76, 218 Israel economic crisis, 1984–1985, 50, 92 Jackson Amendment, 66 Jordan aid, 125–45, 147–62 US democracy and governance aid to Egypt Brownback amendment, 199 2005 elections, 198 Middle East Partnership Initiative (MEPI), 197 US Department of State, 36, 96, 187, 190 US economic aid to Egypt benchmarks, 192, 193, 195, 201, 209, 210, 212 budget support, 184, 190, 195, 209, 211, 222 cash transfer program, 192, 193, 217, 219 commodity import program (CIP), 184, 187, 189, 190, 195, 208, 209, 211 conditionality, 184, 188, 191, 192, 195, 199, 200, 202, 209, 210, 214, 215, 217, 218, 220 debt forgiveness, 191, 192 Financial Sector Memorandum of Understanding, 195, 200, 217 glide path, 194 infrastructure, 184, 187–91, 202, 209, 210, 212, 214–16, 222 pipeline, 189, 190, 195 PL 480 aid, 186, 189 private sector, 189, 190, 194, 209, 213, 220 US economic aid to Israel budget support, 61, 62, 69, 83, 87, 91 commodity import program, 63 debt service, 71, 76, 77, 87 first generation, 63, 78, 83 infrastructure, 63, 96 PL 480 aid, 63 technical assistance, 61, 63, 83, 99 US economic aid to Jordan agriculture, 127, 131, 140, 148, 155 AMIR I, 142 AMIR II, 142 Aqaba Community and Economic Development Program (ACED), 142, 151, 155 Aqaba Technical Assistance Support Project (ATASP), 141 business associations, 136, 142, 151, 153 cash transfer program, 139–42, 149, 159 Coalition Support Funds, 139 conditions precedent, 139 East Ghor, 131, 134 Fiscal Reform Project, 142, 155, 156 Jordan Valley, 131, 134, 137, 154, 155 Millennium Challenge Corporation (MCC), 138, 141 PL 480 aid, 130 roads, 127, 131, 134, 151, 155 SABEQ, 142 INDEX Sectoral Policy Reform Program, 136 water and sanitation, 5, 140, 154, 155, 158 US General Accounting Office, 72, 89 US-Israel science and technology cooperation Binational Agricultural Research and Development Fund (BARD), 69 Binational Industrial Research and Development Foundation (BIRD), 69 US-Israel Science and Technology Commission, 76 US-Jordan Joint Military Commission, 133 US military aid to Egypt cash flow financing, 191 education, 189, 192, 197 Excess Defense Articles (EDA), 191 interest bearing account, 194 tank factory, 192 weapons, 61, 184, 185, 191, 200 US military aid to Israel cash flow financing, 69 cash transfer, 70, 194 data exchange, 66 Excess Defense Articles (EDA), 77 interest-bearing account, 77, 194 offsets, 66 weapons, 61, 64, 66, 76, 89–95, 97, 99 weapons co-development, 89–95, 97, 99 273 US military aid to Jordan education, 132, 153, 155, 160 Excess Defense Articles (EDA), 139 International Police Training Center, 139 King Abdullah Center for Special Operations Training, 139, 160 weapons, 125, 132, 135, 139, 156, 158, 160 US National Security Council, US Navy Sixth Fleet, 129–30 W war of attrition, 47, 64, 68 War on Terror, 138, 143 Wisner, Frank, 188 Woodward, Bob, 133 Woolsey, James, 95 World Economic Forum, 138 World Trade Organization (WTO), 32, 113, 138, 140, 142, 158 Z Zimmermann, A.M., 27, 33 Zionism Jewish Agency, 42, 43 Jewish National Fund, 42 World Zionist Congress, 42 yishuv, 42 Zionist Organization, 42, 43 .. .US Assistance, Development, and Hierarchy in the Middle East Anne Mariel Zimmermann US Assistance, Development, and Hierarchy in the Middle East Aid for Allies Anne Mariel Zimmermann... Middle East, and therefore less influence over US aid to the region (which stands in contrast to Latin America, where US commodity firms and financial institutions had large investments in the late... praises of the US Egypt relationship, including the US Agency for International Development s (USAID) support of physical infrastructure and economic reforms, and the expedited passage of US military