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Economic Development As A Tool Of Foreign Policy

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During the Cold War, the US believed in the prevalent domino theory, which was as one fell under communism, its neighbor was likely to fall under the threat communism. While China and North Korea fell under communism, the US had a goal of containing Southeast Asia from falling under communism and modernizing the nation to liberal capitalist system. The US believed that the advance of communism was threatening the economic development in the regions.
Due to the French colonization, Vietnam had low economic development and lacked physical infrastructure. The US believed that if poverty and underdevelopment persisted in a country, the country is more likely to succumb to communism. Therefore, the US proposed programs dedicating economic development as a tool of foreign policy. The US increased its foreign aid to rebuild and modernize Vietnam. The US launched its state-building project in Vietnam in 1954 due to the reasons of “the increased attention to these nations and people, the rise in foreign aid, and the emergence of modernization ideas” as solutions to fight against communism.
In Vietnam, there were strong nationalism and called for removal of outside intervention. The US thought that Vietnam was incapable of self-government. Through the state-building projects in Vietnam, the US wanted to demonstrate American power in building capacity and influence in the Cold War.
In 1960s, the US focused on counterinsurgency plan, which called for augmenting the level of Diem’s

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