Foreign Aid: The First Peace Dividend

The First Peace Dividend

When Panama and Nicaragua took their dramatic turns toward democracy with more than a little push from the U.S., President George Bush declared that both needed aid from America to rebuild their economies. But he did not say where he would find the money. As Congress seemed to dawdle over the problem, Bush last week said funds could be diverted from the military. If Congress agrees, this would be the first budgetary dividend from the global moves toward peace.

Calling the aid a "Fund for Democracy," Bush said Nicaragua should get $500 million and Panama $570 million. To pay for it,...

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