By: Talisha Priest
Grade 12

Even though the Millennium Challenge Account (MCA) may have problems such as defining corruption and economic need, the MCA plan is a step in the right direction providing that more money is given to non-governmental organizations (NGO’S) and grassroots organizations and that the money is spent on education and healthcare for the people.

The existing problems the MCA faces are lack of education and lack of healthcare. Development cannot occur when the people of a country are uneducated or sick. The people in these conditions are unable to work.

The MCA has guidelines and logistics for each country that wishes to receive aid from the MCA plan. One guideline deals with the scale used to determine the extent of corruption. No country below the average corruption level will receive aid from the MCA. Each country wishing to receive aid must first prepare a proposal telling the MCA board how the country will spend the aid. Included within the proposal are benchmarks that will be set to decide if the country is using the funds appropriately. If it is found that a country does not meet a benchmark at a given time, then aid to that country will no longer be given.

The MCA plan has both positive as well as negative merits. The MCA plan ensures that funds will be divided among countries who meet the criteria for the MCA. This is definitely a positive point. However, along with the division of money among the countries, the money should also be divided appropriately among the local government, the NGO’s, and the grassroots organizations of a country. If the money is only given to the government to decide how to use the funds, many factors may be overlooked, such as where the money is needed, and where the money could be most efficiently spent. Giving money to the NGO’s and grassroot groups will more likely address the source of the problem. The NGO’s and grassroots organization officials are closer to the source of the problem than governmental officials usually are. Therefore, the funds will be better spent if the government, the NGO’s, and the grassroots organizations receive monetary allotments.

A corruption scale is in place. The corruption scale is a positive factor of the MCA plan. Each country is then judged on corruption the same way. However, we must consider that the countries that are most in need of economic aid are the countries that will likely score the lowest on the corruption scale. The 2002 Transparency International Corruption Perception Index rates 102 countries on their corruption level. The scale is based on a series of 15 surveys, given by nine independent institutions, conducted by business people and country analysts. On the scale, scoring a 10 means that the country is “squeaky” clean; a zero means the country is highly corrupt. On the 2002 index, Finland scored the highest with a 9.7. The country scoring the lowest was Bangladesh with a 1.2. The United States came in 15^th, scoring a 7.7. It is a known fact that the U.S. gives Israel the most aid. Israel scored a 7.3 on the corruption scale. Egypt receives the second most amount of aid. Egypt scored a 3.4 on the corruption scale. Columbia scored a 3.6 on the corruption scale. The U.S. gives Columbia the third most amount of aid. Why should we, the United States, give a country that is slightly behind us on the corruption scale the most amount of aid? The countries that are lowest on the scale are the countries that are most in need of aid. According to the Singer packet information, the countries that currently qualify for aid from the MCA with their corruption index numbers given within parentheses are these: Albania (2.5), Bangladesh (1.2), Bolivia (2.2), Georgia (2.4), Ghana (3.9), Honduras (2.7), India (2.7), Malawi (2.9), Senegal (3.1), and Sri Lanka (3.7.) This holding true, the MCA needs a better definition of corruption. Even though the MCA states that no country falling below the median will be considered for aid, the median on the corruption scale is a 5.2. None of the above countries would then be eligible for aid from the MCA. For this reason, the corruption scale needs to be closely examined.

The MCA must have a better definition of economic need. The countries eligible, according to the index, are the countries that are most well off. These countries have no need for economic aid. The people of these countries are most often healthy and educated. The countries that are in need of aid for the people to become educated and healthy are those countries that will not qualify according to the guidelines set by the MCA. The countries scoring the lowest on the corruption scale are the poorest countries. These countries have the biggest problems with providing sufficient health care. The people of these countries are most often illiterate. The MCA must then decide where the greatest need is. To do this, the MCA must come up with a better definition of economic need. This definition will ensure that the countries that are in greatest need will receive the aid, not the countries that are not in need of any aid at all.

In closing, the MCA has merit, providing that funds are divided among countries as well as NGO’s and grassroots organizations within those countries. The MCA can only have merit providing that the MCA officials can provide a reasonable non-contradicting definition of corruption and economic need. Then the MCA plan will have a good beginning stressing that American foreign aid can be expanded effectively.

Questions

Question 1: President Bush claimed that most funds for development do not come from international aid. He mentions three things that do fund development. What are they?

·        Bush believes that funds for successful development should not come from international aid. Developmental assistance should instead come from domestic capital, foreign investment, and trade. Domestic capital is funding from the home. This is the country making its own money. Foreign investment is money from another country. Trade is the most important source. America buys and imports $450 billion in products every year from the developing world. This is more than eight times the amount that is received from all other sources combined. Trade is the “engine of development” and when we promote trade, we help meet the needs of the poor. The same occurs when a country promotes its own trade.

Question 2: President Bush reminded his audience that successful development in a third world country requires more than funds. What two items did he mention in this regard?

·        Bush also believes that successful development involves more than just money. Third world countries are lacking in education, health, and economic opportunity. For development to be successful, citizens need to be literate, healthy, and able to work. Assistance can help poor nations meet education and health care needs. The United States provides more than $10 million a year for food and humanitarian need to help meet these educational and health care needs.

Question 3: When is money sometimes counterproductive, according to President Bush?

·        According to Bush, money can sometimes be counterproductive. It can subsidize bad policies, delay reform, and crowd out private investment. If money is only outright given to any person or country leader, then that person or country leader becomes dependent on this money. Instead of using the potential of those people who are poor to earn their own money, those people are put into a cycle of dependence. They do not need to provide for themselves. It is like the saying, “If you give a man a fish, he will eat for a day. If you teach a man to fish, he can eat for the rest of his life.” Therefore, measures must be installed to be sure the funds are used wisely. Aid must be used to help people become self-sufficient.

Question 4: Describe the Millennium Challenge Account and include in your description what is anticipated from donors and recipients.

·        On March 14, 2002 President Bush proposed the Millennium Challenge Account, a $5 billion plan to help developing nations. The money is to be used for improvised life values such as education, health, and economic opportunity. All these factors are needed for successful development. The people of the country must be educated and healthy, and also have job opportunity. Greater contributions will come from developed countries giving money, but developing countries will in return have a greater responsibility. They will have a responsibility to the developed countries to spend the money honestly and wisely.

Question 5: What are the three broad standards that President Bush expects the leaders of the developing nations to adopt?

·        Bush supports three standards that the leaders of developing nations should adopt. One standard is security. Security is the foundation of development, since there can be no development when corruption and violence are present. Another standard is good government an important part of development. The Millennium Challenge Account will reward nations that do away with corruption, that respect all rights of humans, and that govern by the rule of law. The last standard is healthy economic policies. This will release action and inspiration needed for development. These are all broad standards that must be in place for development to occur.

Question 6: Describe President Bush’s challenge to development banks and explain why or why not you favor it.

·        Bush challenges the banks of developed countries to supply half of the funds in the form of grants instead of loans. Grants instead of loans will help to stop the debt. Grants will have a positive effect in the fight against poverty and suffering. Giving grants will eliminate debt. The people will benefit by having money that they will not have to pay back. They will receive “worry free” money, instead of having to pay loans with interest.

Question 7: What percentage of our national income (GNP) do you think the United States government committed to foreign aid in 2002? First answer this question and then use the Internet to find the answer.

·        I thought that the United States spends five percent of its GNP on foreign aid. After research on the Internet, according to the OECD Development Co-operation 2000 report (2001) the U.S.A. has 9.1 billion dollars in net aid. Of this, 0.1 percent is spent on foreign aid. According to a March 2002 Center for Global Development/Center on Budget and Policy Brief a full $10 billion increase to foreign aid is appropriated. This increases the U.S.A.’s percentage of expected GNP to 0.135 percent by 2003.

Question 8: Describe and defend a “Me First” attitude.

·        “Me first” is an independent attitude. Using the Millennium Account, we can help the foreign countries become more independent. At first they might have to lean on the United States until they become somewhat stabilized. Once the countries are stable and on the way to becoming developed, we can back off. This will give the country independence. Once the countries have a starting point they can take off on their own. Then they can provide their people with the means necessary for education health and economics. The country will benefit from this exchange.

Question 9: Describe and defend a “Mutual Benefit” attitude.

·        All countries that participate in the Millennium Account will benefit. The under-developed countries will receive the aid they need. In return the people will have improved education, better health, and have more economic opportunity. The countries giving the aid will benefit also. First, the people contributing will have a feeling of self-worth. They are helping other people live better lives. Second we must realize that in times of war, we need support from other countries. The countries receiving aid from the United States will likely be allies with our country in the case of a war.

Question 10: Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens.

·        An unsuccessful foreign aid program involves showing resentment, not addressing fundamental inequalities, and having its organizational structure questioned.

·       USAID has many foreign aid programs. Some are successful, while others are not. One unsuccessful program is the Family Planning Program. This program gives women the opportunity to choose the number of children they have. Many people resent this intrusion. The people of these countries are suspicious of donor motives, even though in countries like Africa, the people fear population programs. Many critics call this program a form of racism or imperialism. This USAID program is unsuccessful because of the opposition it meets.

·       USAID’s program to South Africa is also unsuccessful. This program does not address fundamental inequalities in South African society. Segregation has left most black South Africans with little access to housing, education, healthcare, and other benefits of modern society. This program is under attack. Many say that this program is inefficient, unsuccessful, and irrelevant to U.S.A. interest.

·       American donors fund the Asia Pacific Economic Cooperation. This program is unsuccessful because its organizational structure is in question. This program has six purposes: Enhancing peace, promoting development, addressing transnational health and environmental problems, providing humanitarian relief, championing democracy and fostering transition. The organization of the APEC does not follow purposes assigned to it. This program needs to rethink the purpose organization, and implementation of foreign aid.

Question 11: Describe three successful foreign aid programs operated by the U.S. government of private American citizens.

·        A successful foreign aid program involves services for abused children, a partnership among people of all races and faiths, and an increased number of educated men, women, and children.

·       The SOS-Kinderorf International program for Emergency Relief in Gulu, Uganda is a successful program that is American sponsored. This program involves building homes for children who have been through inconceivable cruelties: Former child soldiers, abandoned children, orphaned children and girls. The girls have been abducted and abused as “wives” with babies. This program is raising money through donations. The money will be used to build 15 houses and a small medical center. This will provide ISO children with a new home for two to three years. After this time period, according to requirements, a permanent SOS village could then be established. This program is successful because it is providing services for children who have been affected by civil war.

·       Church World Service has many successful programs. Mission Relationships and Witness Program is one of these. This program builds upon strengths and complexities of partnerships all over the world. This program works to strengthen bonds among Christians by participating in the Committee on Common Witness. The program also supports local, national, and international conversation among Christians and people of other faiths. To promote mission to the U.S.A. from other parts of the world, this program is establishing relationships with the Ecumenical Working Group for Mission to the U.S.A. and Canada. This program is successful because it is building a partnership among persons of all races and creeds.

·       Another successful program the Church World Service set up is the program for education and advocacy. This program has connections with partners in over 80 countries to spark ideas in education and advocacy. This program confronts the main causes of poverty and hunger. These program though the spread of knowledge hopes to enlighten others of the world’s problems and to make a better world for everyone involved. Currently this program is involves with eight advocacy priorities: HIV/AIDS, Landmines, Iraq, and Immigration & Refugees along with many others. This program is successful because it educates and enlightens men, women, and children alike.

Question 12: Steve Radelet, Senior Fellow at the Center for Global Development, believes we can do both – take care of our own people and lend a helping hand to citizens of less developed countries. Explain why you think we can or cannot offer aid to both.

·        Radelet believes that we can both take care of our own people and take care of people in developing countries. If we are going to take care of people in other countries then we need to take care of the people in our own country as well. It is not right if we are giving billions of dollars to developing countries to feed the hungry and shelter the homeless among other programs when we have starving homeless people on our own country. It is possible to take care of both sets of people. We can, if and only if, we realize that we have people in our own country that are in just as much need as the people in developing countries. We must give equal attention to both needs.

Question 13: What do you think about Mr. Radelet’s assertion that “the administration is leaning towards a system in which eligible countries would write proposals (or business plans) describing their objectives and strategy, how they would use the money, the benchmarks used for evaluation. Giving recipient countries this responsibility is a revolutionary change in US foreign assistance.”?

·        Radelet stated that the system that the administration is leaning towards is “a revolutionary change in United States foreign assistance.” This declaration says that U.S.A. foreign aid is finally taking a step in the right direction. We are no longer putting the weight of the work on ourselves. If a country wants aid from the U.S.A., then that country must put together a proposal on how it would use the money. We no longer have to tell countries exactly what they can or cannot do with the money that will be given to them. Instead, the country will tell the U.S.A. what the country would like to do with the money. If the country’s proposal is accepted, then the country will have to set benchmarks, or goals to meet. This procedure will provide a kind of test for the country. If the country does not reach these goals by the set time, then it will not receive more aid. This is a positive improvement in foreign aid especially for the developing country, which would learn the value of money and how to use it wisely.

Question 14: Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why?

·        Radelet has three concerns regarding the Millennium Challenge Account. Out of his three concerns one stands out to me, the make-or-break requirement. The make-or-break is a standard set on a scale of corruption. This scale, however, will unnecessarily eliminate some countries. Each country must score above the average level on the corruption scale. Within the scale is a small allowance for error, which is likely to occur, however not enough of an allowance. Our observation of corruption may be under the average. However, the actual level may be above the average. This country could lose out on aid needed when the country meets the necessary requirements needed to receive the aid. We should make it a priority to look at each country, which is just below the median, individually and then decide if the country should receive aid.

Question 15: There is evidence of an increase in negative world opinion towards US foreign policy, not necessarily the American people. TO counter this negative perception of the US some people want the US to concentrate more on weapons of mass assistance (WMA) and less of weapons of mass destruction (WMD). Please comment.

·        There is evidence that United States foreign policy is increasingly viewed by the world negatively. The negative opinion comes from the U.S.A. focusing on weapons of mass destruction (WMD) more than it is focusing on weapons of mass assistance (WMA). A WMD is defined as a nuclear or biochemical weapon. A WMA is defined as aid to a country such as programs promoting education and healthcare. The U.S.A. should focus more on WMA than it does on WMD. However, the United States should not stop worrying about WMD’s. The U.S.A. cannot safely send volunteers into a country to give aid and assistance when the threat of nuclear and biochemical weapons is present. The U.S.A. should set up a standard that the less threat a country is to war, the more aid it would receive. If the U.S.A. does this, then the opinion on foreign policy would be viewed as positive as opposed to negative.

Question 16: What does the World Bank recommend as the US’s “just and appropriate share” to reach the Millennium Development Goals by 2015? Do you think our citizens can afford that kind of increase? Defend your views.

·        The World Bank recommended a “just and appropriate share” for the United States to reach the Millennium Development Goals by 2015. The goal is for $40-60 billion yearly costs. The U.S.A.’s share of this total is $10-15 billion dollars. The U.S.A. has approximately 290 million people. If these people were all taxpaying citizens, then each person’s taxes would be raised by $50 each year. The average American can afford this increase; however, out of the 290 million people, 22 million are homeless. Most Americans would rather see their tax money spent on the local people who need help, not those people in other countries. The question then should not be, “Can our citizens afford the increase?” Instead the question should be this: “Will our citizens be happy with the decision on where the money goes?”

Question 17: What do you think about the request of Faith Action for People Centered Development Policy’s request that tax dollars be used to fund, not only government-sponsored foreign aid programs, but “that funds also go to NGOs and grassroots organizations.”?

·        The money that goes for foreign aid should go to non-governmental organizations (NGO’s) and grassroots organizations. The government of the country would not have say in where the money would go. Then the money would go directly to the need. The local people would decide where the money should go. This would also set up a policy of local ownership. Those people most in need would receive a greater amount of aid sooner than they would if the money went to the government first.

Question 18: How many countries would be affected positively by health-related investments according to the Commission of Macroeconomics and Health (CMH)?

·        A total of 83 countries would benefit by health-related investments. These countries would be affected positively by having better education, sanitation, water, health, and economy. A better economy would produce more jobs for the people. When the people of a country are better educated and healthier, they are able to work at those jobs. The country would then become more self-reliant. It would be able to use trade and commerce as a source of income. When the country has a larger source of income, the country would become more self-dependent and no longer need aid from other countries. The country could even become so developed that the country in return could offer aid to a developing country.

Question 19: According to the CMH, how much would be gained annually between 2015-2020 due to saved lives and increased economic growth, if an increased investment were made in global AIDS and other health services?

·        According to the CMH, many benefits could be gained annually due to saved lives and increased economic growth, if an increased investment is made in global AIDS and other health services. There would be a positive effect on the economic growth and equity in 83 countries. These countries could benefit in one four ways. One is the education on preventing AIDS could reach 70 percent of the population outside of the health division. The education on preventing AIDS and services could also reach 40 percent of the population within the health division. Of the total population, 45 percent could be reached with programs to address opportunistic infections. In addition 40 percent of the population could be reached through HIV treatment programs. With this, 8 million lives could be saved and $360 billion would be gained annually due to lives saved and the economic growth.

Question 20: Use the Internet for your research and name the two congressmen who introduced H.R. 4524. Give a 2-line synopsis of that bill.

·        John LaFalce and Chris Smith introduced H.R.4525 into the House of Representatives during the second session of the 107th Congress in 2002. This bill was created to ensure that the enhanced Highly Indebted Poor Countries Initiative achieves the objective of substantially increasing resources available for human development and poverty in heavily indebted poor countries, and for other purposes. This act is cited as the “Debt Relief Enhancement Act of 2002.”

Selected Bibliography

Bush, George W. “Millennium Challenge Account.” Paper in Singer Packet, 2003, pp 1-5. January 16, 2003. www.singerfoundation.org

Faith Action for People-Centered Development Policy. “Testimony before the Foreign Operation Subcommittee Appropriations Committee U.S. House of Representatives.” Singer Contest Packet, 2003. January 16, 2003. www.singerfoundation.org/Current%Contests/EssayContests/morerequiredreading2003.ht

Fuller, Terry. Presentation on World Aid. Kinsley High School, Kinsley, Ks, April 7, 2003. 

Radelet, Steve. “Initial Reactions to the Announcement on the MCA.” Singer Contest packet, 2003. January 16, 2003. www.singerfoundation.org/Current%Contests/EssayContests/morerequiredreading2003.ht

“Trends in Bangladesh Economy in the Financial Year Ending June 2000.” April 16, 2003. www.bangladesh.net/article_bangladesh/economic_trends.html

“Trends in Europe and North America.” August 2, 2002. April 15, 2003. www.unece.org/stats/fin.pdf

“The 2002 Transparency International Corruption Index.” April 15, 2003. www.infoplease.com/ipa/A0781359.html

Webb, Michael. “MLWebblog.” Thursday, August 29, 2002. April 15, 2003. www.mlwebb.com/Oregon/2002/08/29.html

Yang, Yi-Yeon Sakon, Sooyoun and Park, Kyungae. “Consumer Perception of a Nation’s Economic Condition: Impacts on Purchase Behaviors of Foreign Products.” April 15, 2003 www.itaaonline.org/ITAAnew/Proceedings2000/posters/016.html

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