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India and Pakistan were the main beneficiaries in moves by the United Sates to have South Asian allies after the events on September 11. International affairs experts say that smaller but more open Sri Lanka is also seeing some spin-off effects of US moves to push its agenda.
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The United States is the largest donor in the world.
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According to OECD statistics the American government gave away over US$ 15 billion in aid last year.rn

rnBut as a percentage of GDP the US is also the most miserly lender among the OECD nations with its aid budget at less than 0.2 percent of GDP. rn

rnThe US aid budget pales in front of a target set by the United Nations for rich countries to raise their lending up to 0.7 percent of GDP.rn

rnBut analysts say the Americans are slowly beefing up their aid budget using it as a carrot to get developing countries to support what they call lquote war on terror.rn

rnSouth Asian countries like Pakistan have been some of the biggest beneficiaries of recent US goodwill.rn

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