Foreign aid, or the Millennium Challenge Account (MCA), has merit providing that sufficient funds are available, developing countries are willing to help in the growth process, and that the people give support to development programs.
Funding is
necessary for any foreign aid program to operate. Funding issues in programs can
determine how successful the program is. Foreign aid efforts ask for donations
or sponsors to help in financing their programs. Just one of the many donors is
the Bill and Melinda Gates Foundation (BMGF). In 2003, the BMGF announced a $200
million grant to establish the Grand Challenges in Global Health Initiative.
This effort will seek challenges in global health to increase research on fatal
diseases in the Third World countries. According
to the Global Forum on Health Research, only ten percent of medical research is
devoted to the diseases that cause 90 percent of the health burden in the world
today. “This initiative is about discovery and invention. It is about finding
specific solutions to the hardest problems. Accelerating the research to
overcome scientific obstacles in AIDS, malaria, and other diseases, will save
millions of lives,” said Bill Gates, co-founder of the BMGF. The entire
funding of the BMGF is dedicated to improving people’s lives by sharing
advances in health and learning. This is accomplished by donating millions of
dollars to the Grand Challenges in Global Health Initiative.
Another
funding organization is the Ford Foundation. This foundation is funding the
Program-Related Investments (PRI’s) which is to help meet the credit needs of
organizations that lack the finance to complete projects. The Ford Foundation is
sponsoring the Coastal Enterprises, Inc. of the PRI. Ford is donating $3,000,000
to provide development programs the funding to create employment opportunities
in disadvantaged countries. The Coastal Enterprises, Inc. also provides funding
for education programs and student aid. The
Ford Foundation strives to strengthen democratic values, reduce
poverty and injustice, and promote international cooperation to make an advance
in human achievement.
A country
receiving aid must be willing to cooperate and help in the development process.
The World Bank is working with donors and developing countries to improve the
policies and practices of the Third World nations. The new policies and
practices can be found in Jamaica, Ethiopia, and Vietnam. “If, as a global
donor community, we can get our act together, we will better serve those people
in the poor countries who now want to lead their own development efforts,”
said World Bank President James Wolfensohn.
The Food and
Agriculture Organization (FAO) also helps underdeveloped countries become
independent. FAO designed workshops to help the integration of rural women in
developing countries. The first workshop was held in Budapest, Hungary May 4-6,
1995. The second conference was held in Wageningen, Netherlands January 18-20,
1996. The third workshop was hosted in Ljubljana, Slovenia on October 23-25,
2007. The FAO designed these workshops to raise awareness about the seriousness
of the stalling of rural women’s full participation in the development process
in Europe. The awareness will be used to aid other countries in developing their
own national action plans.
In order to
establish a successful foreign aid program, support is needed. Support involves
not only financial, but also emotional as well as physical support. Without
sufficient support, a relief program will falter. The “Bankruptcy” Program
is an example of an unsuccessful foreign aid program. This effort’s purpose
was to give relief to victims of poverty and to establish easier policies for
developing countries to comply with. This program is not in action today because
it never started. The entire program failed to draw interest. The effort has no
support and no political backing. Therefore, no financial support was
accumulated. Without support, no aid program can live.
The Association
for Women’s Rights in Development (AWID), on the other hand, shows adequate
support for an aid program to thrive. The AWID holds forums that provide
opportunities to develop strategies, share ideas, build skills and provide
support to and for gender equality. The past forums have hosted conferences for
as many as 1,300 policy makers, practitioners, researchers, activists, policy
makers, students and business people all over the world. Each forum focuses on
finding new ways to further the rights of women. This effort has gained much
support over the eight years it has been in existence and continues to gain more
support each year.
The
Millennium Challenge Account is only one chapter in the book of foreign aid.
Many efforts come together to unite nations, developed and poverty-stricken
alike. With enough financial support from donors like the Bill and Melinda Gates
Foundation and the Ford Foundation, foreign aid can be successful. Efforts will
be kept successful with moral support from such programs like the Food and the
Agriculture Organization and Association for Women’s Rights in Development.
Everyone
will gain from the development of Third World countries. By helping establish
medical, educational, and economic needs, citizens of these unfortunate
countries will be more successful. By developed countries helping the
individuals of the underdeveloped countries, the economies will also grow. The
trade industry will see an increase in the investments made and everyone will
benefit. Countries will be proud of the products they have made, and the
receiving countries will bask in the support they have longed for.
The
Millennium Challenge Account as well as many other foreign aid efforts can
thrive as long as funding issues can be secured, a sense of self provision comes
from the underdeveloped countries, and the support of the program remains
helpful.
Selected Bibliography
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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?
·
President
Bush claims that international aid should not be used to help underdeveloped
countries. Instead, Bush suggests domestic investments, foreign investments, and
trade to help a country develop within it. Domestic investment occurs with
people of a nation invest in their own education, welfare, and retail. Foreign
investments can be defined as money given to developing countries from bonds
developed countries. This money is given in a form of a grant. Trade is very
important to help develop a country. Money from trade helps develop additional
industries and also helps a developing country gain self-sufficiency.
Question #2: President Bush reminded his audience that successful development in a Third World country requires more funding. What two items did he mention in this regard?
·
Bush
believes that a developing country needs more than just funds. Third World
countries need to have good health care systems, adequate education, and stable
economic opportunities. By having a healthy country, the general population can
work productively. Education is important to a developing country. With new
skills people will learn, citizens will gain a new sense of worthiness in their
lives. Everyone will be happy, and trade will be enhanced. A stable economy is
important to a developing country. Industry flourishes when supply and demand
are in a set pattern. When supply and demand are steady, the country will be
able to trade its goods worldwide and help their financial status.
Question #3: When is money
sometimes counterproductive, according to President Bush?
·
Grants, or
financial aid, without restriction can actually hurt a developing country. When
Third World countries do not rule justly, allow sufficient health care plans, or
promote good education, grants are counter-productive. Money given to help these
countries can and will stall development. When a country does not rule justly,
development becomes stifled, frequently because of greed. By not installing a
good health care plan, underdeveloped countries suffer. Without healthy and
happy workers, industries do not usually produce effectively. If citizens are
not taught skills, production is almost impossible. When a country earns and
uses its own money, everyone, both domestic and foreign, benefits. But the money
used has to be used within productive guidelines.
Question #4: Describe the Millennium Challenge Account and include in your description what is anticipated from donors and recipients.
·
Some of the
values in life include education, health, and economic opportunity. Many
countries are not able to have these necessities to grow and to prosper.
President George W. Bush suggests a five billion-dollar plan to help developing
nations. This proposal is called the Millennium Challenge Account. Bush explains
that terror exists within an underdeveloped country that does not offer proper
education, adequate health care, nor economic opportunity. With the help of the
Inter-American Development Bank and other development banks, we will help these
underdeveloped countries stand on their feet and flourish. By aiding in the
Third World countries, we will also help fight terror.
Question #5: What are three broad standards that President Bush expects the leaders of the developing nations to adopt?
·
President Bush expects the
leaders of developing nations to adopt quality education, adequate health care,
and stable economies. Teaching both boys and girls primary education is
essential to help fertilize a growing country. These young men and women will be
able to earn more money for their hard work with the new skills the education
system will install. With a government providing health care system for
citizens, mortality rates will decrease and the quality of life will improve.
Healthy workers provide an economy’s good wealth by producing more
efficiently. To improve the lives of millions of Third World citizens, the
government of the Third World countries should help reduce the destruction of
resources and provide drinkable water. A Third World country must have
sustainable policies in their government. By having a sound economy, civilians
of poverty and hunger will be able to thrive in a government that provides for
their daily needs.
Question #6: Describe President Bush’s challenge to development banks and explain why or why not you favor it.
·
Bush
addresses the Millennium Challenge Account to the Inter-American Development
Bank in Washington, D.C. He describes countries in desperate need of aid.
“Half of the world’s people still live on less than two dollars a day,”
the Presidents states; “thousands of teachers die each year from AIDS, and
life expectancy has fallen to only 38 years.” By providing five billion
dollars to underdeveloped countries, we can help adopt sound policies. President
Bush asks development banks and the World Bank for support. This new plan can
help with the poverty problems thus relieving the stress of the suffering in the
world. This is a great start to help underdeveloped countries. We must give to
receive. By our giving of five billion dollars, but we will help millions of
people gain a sense on worthiness.
Question #7: What percentage of our national income (GNP) do
you think the United States government committed to foreign aid in 2002?
·
My initial
thought was that our national income (GNP) would commit at least three percent
to foreign aid. When I researched my assumption, I was shocked to find that only
.7 percent of gross domestic product (GDP) came from wealthy nations. This
percentage was set in 1992, when the world’s governments met under the United
Nations supervision and devised a program called “Agenda 21.” The author of
the agenda was a committee called the Organization of Economic Cooperation and
Development (OECD) otherwise known as the Development Assistance Committee (DAC).
Question #8: Describe and defend a “Me First” attitude.
·
With the
help of foreign aid, citizens of Third World countries will be able to educate
and take care of themselves independently. By providing some funding for
schooling, children and adults will be educated. The inadequate schooling
systems these countries use are not successful. By supplying medical assistance
and supplies, individuals will gain strength and morale to be able to work hard
for their country. By being sick and weak, no one can be independent. If foreign
aid is given, economies will prosper. Individuals that work hard for their money
will flourish. Their incomes will start to grow, and families will be happier.
Each person in these countries will gain a new perspective, thus reducing
terrorism.
·
With the
help of foreign aid, everyone will benefit. By educating the illiterate,
businesses will begin to produce more products. With prospering production,
every country will gain from the supply and the exchange of goods. By helping
the sick, research and new medicines will be provided for everyone. If money is
available, research will be able to continue and fatalities worldwide will
disperse. Supply and demand will work for the people, not against them.
Question #10: Describe three unsuccessful foreign aid programs
operated by the U.S. government or private American citizens.
·
An
unsuccessful foreign aid program may overestimate the program’s abilities, may
not have the support needed to provide for the program, or may never have
accomplished the program’s goal. The MEGA, “Bankruptcy” System, and the
Cuban Embargo programs have all unsuccessfully provided foreign aid.
The Michigan Economic Growth Authority (MEGA) was
devised to provide $34 million in tax credits, to create job-training subsidies,
and to install local incentives to be offered to K-Mart all around the world.
The first project MEGA undertook was the attempted creation of 753 jobs by 2013.
The follow-up project would create 717 jobs by 2019. The whole system was in
place in 1998 and 2000 in Troy, Michigan, United States. Unfortunately, the
program organizers pretended to know more than they really did. The predictions
the program made were full of complications and limitation. MEGA did not offer
any jobs that they promised. Instead, MEGA only shuffled employers to other jobs
within the company they already worked for. MEGA granted certain businesses
special favors and not to other businesses. This system was unfair from the
start.
The “Bankruptcy” System’s headquarters was in
Washington, D.C. From this location, the program would reshape the rules of the
international economy to deal with financial crises. The program would also
establish a procedure that would be easier for countries with difficulties to
halt financial panics and to negotiate debt reprogramming. But the program
gained no support. The program drew criticism because it often failed to secure
financing for Indonesia, Russia, and Argentina. Because there was no political
backing, there was no chance for establishment to take place. The entire system
was not practical, and never founded a strong hold in the foreign aid world.
The Cuban Embargo program is also known as
“Trading with the Enemy Act of 1963.” The program is still in force today.
The Cuban Assets Control and the United States Treasury Department’s Office of
Foreign Assets Control head the agency. These leaders are in control of the
regulations with the aid to Cuba. The initial goal was to overthrow Fidel Castro
by isolating Cuba economically and by depriving the country of American dollars.
Since the start of the Cuban Embargo program in 1963, Castro has not been
overthrown. When a program does not complete a goal, it fails. For 40 years, the
Cuban Embargo program has failed.
Question #11: Describe three successful foreign aid programs
operated by the U.S. government or private American citizens.
·
A successful foreign aid
program may educate people, secure long-term and short-term food supplies, and
may possibly improve working conditions. The InterAction programs based in
Washington, D.C., offer all of these characteristics in their foreign aid
programs.
InterAction’s
World Education (GATE) program offers education to women. Over two-thirds of the
adolescent girls are not educated in Nepal. Thousands of young women and girls
are taken from their homes by trafficking, and forced into a life of abuse and
prostitution. A great need exists in Nepal to educate women about reading and
writing, simple math, and health education. Thanks to the GATE program, over
13,000 girls are offered opportunities since the program’s birth in 1998.
These women are taught basic skills in reading, writing, mathematics,
reproductive health, and consequences of early marriage, adolescent pregnancies,
unsafe sex, sexually transmitted diseases, prostitution, and abuse. This GATE
program is in effect in 15 different districts all over Nepal.
InterAction’s
Solar Cookers International program caters to refugees in Kenya. Much of the
population is in desperate need of cooking fuel. Many people swap their personal
food rations for a few fire logs or some kerosene. When families do have enough
firewood or fuel to cook food with, the smoke and gases from the flame hurt the
environment. Since 1995, Solar Cookers International has helped over 22,000
families cook with environmentally safe cookers for a good price. Each cooker is
a little more than five dollars per person. These solar cookers save up to 27-70
percent of firewood for warming the family’s dwelling, and have helped save
the forests of Northwest Kenya. With these cookers, citizens of underdeveloped
countries are able to eat up to four servings daily. The increase of food intake
has substantially increased health. Without fire, fewer burns exist.
InterAction’s
International Youth Foundation program (Alliance) has conducted 10,000
interviews to factory workers in India, Indonesia, Thailand, and Vietnam. These
surveys are given to gauge the needs, hopes, and experiences of the individual
workers with their jobs. From the surveys, it is known that managers play a very
critical role in a business trying to grow. The work places in these countries
now have health services, counseling in life skills, and advice on personal
finance. The new, friendlier work environments promote self-confidence and
health awareness. These new programs have reached over 350,000 workers,
managers, and families. Over 1,500 factory managers have been trained in
communication, leadership, and management to help struggling businesses
flourish.
The
InterAction programs offer many ways to aid foreign countries. These aid
programs educate people to enrich everyone’s lives, provide improved ways of
food preparation, and improve working environments.
·
We can take
care of our own people while helping underdeveloped countries. We learn on a
trial and error basis. By perfecting the techniques of education, health, and
government policies, we will be able to help the citizens of Third World
countries. Knowledge is a gift we all share with one another. Sharing techniques
of teaching will help boost economies and help prevent terrorism. Research and
new medicines will better improve health care systems. Research is conducted now
to help find the cure for HIV/AIDS. Only by trial and error will we be able to
find such a miracle. Economies will grow by the newfound wealth and health care.
Happy citizens make productive workers. In short, I agree with Radelet. We can
take care of our own people and lend a helping hand to citizens of less
developed countries.
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 the U.S. foreign assistance.?”
·
Foreign aid is given to
countries with impoverished and hungry people. Many countries depend on the
assistance of other countries. To weaken the dependency of underdeveloped
countries, they must show that their country is worth giving aid to. Letting the
Third World countries devise a plan and start that action plan will show
independent countries the worthiness of underdeveloped countries. Potential
thrives in the veins of every country. Action plans must be given out before any
assistance is given. Dependency is a major stall for development.
Question #14: Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why? –The separation of US foreign assistance into two agencies could lead to a lack of coordination and overlapping functions.
· Breaking down the United States foreign assistance program into two efforts will lead to chaos of overlapping developments. Foreign aid must work as one to function properly. With two agencies running at the same time, the efforts the agencies sponsor will be confused. Each effort and agency must be kept in close check. Foreign assistance can be very unstable and must be supervised. When too many projects are in motion at the same time, promises will not be kept, people will be disappointed, and most importantly, the entire project will be a failure. By over-stretching budgets and abilities, many countries and the citizens of Third World countries will suffer.
Question #15: There is evidence of an increase negative world opinion towards U.S. foreign policy, not necessarily the American people. To counter this negative preception of the U.S., some people want the U.S. to concentrate more on what Weapons of Mass Assistance (WMA) and less on Weapons of Mass Destruction (WMD). Please Comment.
·
With so much conflict
within the world, weapons of mass destruction are a major concern. If weapons of
mass destruction are used, aid is needed within the victimized country. Weapons
of mass assistance shall then play a role in the world. Assistance is given
everyday to victimized citizens of targeted countries. The weapons of mass
assistance include money, education, training programs, volunteers, and health
care awareness. Assistance is important, but weapons are still an extreme
threat. In order to assist a damaged country, volunteers must be safe and able
to work in a danger-free work zone. We must first concentrate on controlling the
use of weapons that cause mass destruction in order to use our weapons of
assistance to aid the masses.
Question #16:What does the World Bank recommend as the United State’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
Millennium Development Goals (MDG) are intended for the World Bank Group,
governments, and other partners in the development community. Goals of the MDG
are set to the year 2015. The MDG are wanting to eradicate extreme poverty and
hunger, achieve universal primary education, promote gender equality and empower
women, reduce child mortality, improve maternal health, combat HIV/AIDS,
malaria, and other diseases, ensure environmental sustainability, and to develop
a global partnership for development. To reach these goals, funding must be
given. Between $40 to $60 billion are asked of for each year until 2015. Because
of the size of the American economy and wealth compared that of other countries,
the just and appropriate American share is $10 to $15 billion of the $40 to $60
billion requested per year. If there are approximately 290 million people in the
United States, and at the maximum of $15 billion to be supplied, the American
citizen will be taxed $52 to fill the need. But considerations must be made for
those citizens that cannot afford to pay such a fee. Perhaps the American
industries and the citizens can cooperatively work together to meet requirement
for the MGD.
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 NGO’s and grassroots organizations.”?
·
Funding
given to a victimized country’s government can help, but only to a certain
point. By giving aid to non-government organizations, small businesses and local
organizations, the funds to these organizations will provoke more local
ownership. Also, the aid given to local businesses will also help the individual
citizens. By our helping the individuals of the Third World countries, the
economy will expand and the country in need of funds will begin to see an
increase in the country’s own money. This newly found self-reliance will allow
supporting countries the relief they need in order to help other needy
countries.
Question #18: How many countries would be affected positively by health-related investments according to the commission on Macroeconomics and Health (CMH)?
·
According to
the Commission on Macroeconomies and Health (CMH), 83 countries will be
positively affected by health-related investments. The investments will provoke
economic growth. When aid is given to countries in need, people will be blessed
with prevention, care, support, and treatment interventions. By 2010, an
estimated eight million lives could be saved annually by aid and the provided
health services that are provided. Between 2015-2020, approximately $360 billion
will be raised because of improved lives and the economy expanding.
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?
·
The
Commission on Macroeconomics and Health (CMH) estimates that $360 billion will
be gained annually between 2015-2020. This is possible because of all the
improved lives and the increase in the economy. The CMH has found that by 2010,
eight million people could be saved by health services. By investing in health
services and AIDS, $360 billion will be accumulated and will pay for the initial
investment. The money earned will be able to fund a distraught country’s needs
in education, health, and economic benefits. The people will have a better
lifestyle.
Question #20: Name the two congressmen who introduced H.R. 4524 with a synopsis of that bill.
·
Congressmen
Lamar Smith of Texas and John LaFalce of New York introduced the House of
Representative bill 4524, also known as the "Debt Relief Enhancement Act of
2002.” This plan was made to nearly double current debt relief by cutting an
additional $1 billion in both bilateral and multilateral debt service annually.
The bill was also made so that the United States’ contribution of $43
million/year would go to help write off regional multilateral debt (as current).
The bill would dedicate resources to health care programs, education, and other
development priorities after the bill has been passed. Reports indicate that
approximately 40 percent of the debt savings would be directed to education and
25 percent to health care. Unfortunately, this bill has only been proposed. H.R.
4524 is still being discussed to become a law or an act.
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