Foreign Aid Comparitive Ratio

I have been thinking about the fact that we should cut off foreign aid to any country and has a bad human rights record (for example).  After some thought I realized cutting them off is NOT the right answer.  We need to give them positive incentive NOT negative incentive and as such I put some effort towards creating a percentage based incentive system for foreign aid.

The graphic below shows how I applied a few indicators (in the form of percentages) to create a Foreign Aid Comparative Ratio.  This ratio (in my example) takes into account indicators (that are converted to percentages where needed) like the human rights indicator from ihrri.com, a percentage I created from the removal statistics from ICE (removal numbers percentage on page 4 here).  One could add any kind of indicator as long as you balance it out (somehow make apples = apples) and then use it in a formula to calculate the amount of percent of the total money they are allotted.  One might add indicators for terror activity or support, human trafficking, if you own us money, etc.

Here is an example of Mexico (based on Human Rights and Immigration):

They are allotted (per the FY2011 budget) 317.5M for economic aid and 93.7M in military aid.

The Human Rights indicator from ihrri.com for today says they are at 51.59%.  We (United States) are at 67.8% today so I calculated the Human Rights ratio at 76.091% because 51.59 is 76.091% of 67.8.

The Immigration removal numbers for Mexico are 241493 removals out of the total 357422 which ended up being 67.565% and the inverse of that is 32.435%.   So in this case the Immigration ratio is 32.435%.

Like I said before one could add other ratios that apply.

NOW we take the approved FY2011 foreign aid amounts for economic aid and military aid stated above and plug them into the formula:

FORMULA:

=IF(G3<=0,C3*E3,(C3*E3)*G3) {this example is economic aid}

=IF(G3<=0,D3*E3,(D3*E3)*G3) {this example is military aid}

Where G3 = the Immigration Ratio; E3 = the Human Rights Ratio; C3 = Approved Economic Aid; and D3 = Approved Military Aid.

In this case G3 is greater then zero so we will use the “(C3*E3)*G3” part of the economic aid formula:

(317.5M * 76.091%) = 241.6M then (241.6M * 32.435%) = 78.36M

In this case we approved them 317.5 but they are only going to get 78.36M because of this calculation.

Here is the entire spreadsheet (I can make it available for download if requested):

Capture

"The American dream is not that every man must be level with every other man. The American dream is that every man must be free to become whatever God intends he should become." Ronald Reagan

Posted in Economics, Foreign Policy, Human Rights, Ramblings