Economic Development and Regionalism: United States Foreign Relations in the Middle East, 1942-5

Abstract

While planning America's post-war role in the world, government officials gradually realized that the economic development of the underdeveloped world could assist in achieving national socioeconomic well-being and international political and economic stability. Policy-makers hoped, for example, that development in the Middle East would lessen the chances for regional conflicts involving local countries and external powers, thus protecting vital communication routes, oil resources, trade opportunities and profitable outlets for capital investment. Although favouring Middle East and world economic development, United States leaders believed that such development was primarily the function of the actions and policies of the poor nations themselves. The most constructive American effort would be to create a favourable global climate for private investment and trade. Free international trade, a long-standing goal of American foreign policy, would presumably help poor areas to develop their agriculture and industry efficiently through the mechanisms of comparative advantage and private enterprise. During the war years, planners in the State Department and other government agencies discussed and outlined technical and financial aid, trade and regional policies for the Middle East. The regional approach to Middle East economic development focused on two issues the efficacy of an indigenous regional economic organization and the most suitable bureaucratic organization for the conduct of American policy in the area. In the process of discussing regionalism, the bureaucracy explored an array of issues which transcended the regional approach in importance. These issues included United States relations with Great Britain, the economic and political functions and prerogatives of the State Department, and policy questions regarding economic controls and free trade. Although the regional