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February 7, 2018

Until now, two approaches have dominated American foreign aid: the strategic and the humanitarian. Trump has added a third: the "business approach." The strategic is based on interests, the humanitarian on compassion, and the business on yield. The great powers use the strategic approach and the Europeans the humanitarian. The business approach now guides US aid to the Palestinians. Trump has threatened to cut off US aid to the Palestinians if they refuse to negotiate with Israel, and cut US allocations to UNRWA. This new approach influences the attitudes of Egypt and Jordan, both large recipients of American aid. This can be seen in their low-key responses to Trump's Jerusalem decision. It can also have ramifications for Israel's relations with the Palestinians and the US.

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