There have been many deadly terrorist attacks which have taken place in the 21st Century. At the turn of the century the world was transfixed as two planes were hijacked and flown into the ‘Twin Towers.’ Many recent attacks have been carried out by Islamic Fundamentalist groups. In 2015, Boko Haram, the Taliban, Daesh and Al-Qaeda were responsible for 74% of all terrorist attacks which took place across the globe. It is widely recognised that aid is used to promote donor interests in areas such as curbing terrorism. This thesis is focused on identifying whether terrorist attacks which have been carried out by Islamic Fundamentalist groups has increased the amount of aid to Muslim countries. The research identifies that in the earliest parts of the 21st century Iraq and Afghanistan received large proportions of aid due to the ‘War on Terror.’ From 2010 onwards this trend shifts and other countries that have large Muslim populations have increasingly received vast proportions of aid. This trend has been attributed to the changing context and concerns such as the War in Syria and the migration crisis. The research also looks at whether isolated terrorist incidents influence aid allocations. I have examined trends related to UK aid before and after the 7/7 bombings. The evidence shows that countries which are defined by the US Department of State as ‘state sponsors of terrorism’ and ‘terrorist safe havens’ have received more aid after the 9/11 hijackings and then after the 7/7 bombings.

Foreign aid is publicly motivated by a moral obligation to help the poor and develop underdeveloped countries. Donors have invested more than US$2.3 trillion in foreign aid, but despite this significant investment, 3 billion people are still living on less than $2 a day, 840 million are hungry, 10 million children die from preventable disease, and 1 billion adults are illiterate. This study focuses on the impact of foreign aid on economic growth and development of underdeveloped countries. It was found that many variables influence growth and development and that cross-country regression analysis is an inappropriate method to measure the effectiveness of aid. The methodology is too generalist, and treats foreign aid as a homogenous entity that works equally in all countries in all types of environment and across all times. There is an urgent need to develop a new methodology for measuring the effectiveness of foreign aid. / Development Studies / M. A. (Development Studies)

Foreign aid is publicly motivated by a moral obligation to help the poor and develop underdeveloped countries. Donors have invested more than US$2.3 trillion in foreign aid, but despite this significant investment, 3 billion people are still living on less than $2 a day, 840 million are hungry, 10 million children die from preventable disease, and 1 billion adults are illiterate. This study focuses on the impact of foreign aid on economic growth and development of underdeveloped countries. It was found that many variables influence growth and development and that cross-country regression analysis is an inappropriate method to measure the effectiveness of aid. The methodology is too generalist, and treats foreign aid as a homogenous entity that works equally in all countries in all types of environment and across all times. There is an urgent need to develop a new methodology for measuring the effectiveness of foreign aid. / Development Studies / M. A. (Development Studies)