2013 Briefing Book - Print Version - Aipac

FOREIGN AID
SOLID INVESTMENT: HOW AID TO ISRAEL BENEFITS THE UNITED STATES
Creates Jobs
Israel spends 75 percent
of U.S. security assistance
in the United States,
buying vital defense
products.
Promotes Peace
U.S. assistance has
allowed Israel to remain
strong militarily, allowing
it to take risks for peace
with the Palestinians and
sign peace treaties with
Egypt and Jordan.
Advances Technology
Israeli battlefield use
of American defense
products has helped the
United States improve its
own equipment while
tapping advanced Israeli
technology and tactics.
Deters Major Conflict
U.S. aid has deterred
major conflict by making
clear to potential foes
that they cannot defeat
Israel on the battlefield.
Israel’s Defense Costs Have Risen Markedly
Spiraling defense costs are forcing Israel to spend more on defense as a percentage of gross
domestic product (GDP) than any other nation in the industrialized world. Israel officially
allocates close to seven percent of its GDP to defense. However, the actual costs to the Israeli
economy are much higher, taking into account lost productivity and the need for reserve duty,
internal security and anti-terrorism spending. Even as Israel faces its own substantial budgetary
pressures, during the next decade, Israel may well have to spend $160 billion on defense, a
significant increase over the previous 10-year period.
Israel’s spending coincides with accelerated military investment fueled by the oil revenues of
Israel’s Arab and Iranian neighbors. Saudi Arabia’s military budget doubled over the last decade,
while Iran’s rate of military spending has grown at a similar pace despite economic pressures.
This is reflected in the major purchases and development of new arms that may put Israel at risk.
Egypt, the UAE, Iraq and other Arab nations have also made large-scale purchases of weapons
and military technology. On a more modest but no less troubling level, Lebanon has greatly
ramped up arms imports, and Iran continues funding elements of Hizballah’s military expansion.
The military hardware—including American-built advanced fighter aircraft and naval vessels—
that the Israel Defense Forces (IDF) must acquire over the next decade to maintain its QME is far
more sophisticated, complex and expensive than previous Israeli purchases from the United States.
105