Kinsley High School
Kinsley, Kansas
Teacher: Dr. Galen R. Boehme
Steps Toward a Better Millennium
Challenge A
by Rob Garner
Grade 12
For
the Millennium Challenge Account to aid more efficiently, the MCA needs to give
aid to the countries that need it most, to stress more firmly of the importance
of trade development, and make various improvements to ensure countries who need
aid will receive aid.
Foreign
aid should be given to a country for the right reasons. Aid should be given to
countries that need it most, that are not corrupt, and that will use the aid for
the benefit of not only the leaders of the country, but also for the actual
country. The United States currently gives aid to certain countries that do not
need aid as much as other countries. For example, the country that receives the
most foreign aid money is Israel. Israel
has a thriving economy and does not need much aid. Since 1987, the United States
has annually given large sums of foreign aid money to Israel. Each year, Israel
receives $1.2 billion in aid to be used to improve its economy and $1.8 billion
for military purposes. In 1998, in an effort to reduce aid to Israel, former
President of the United States Bill Clinton decided to slowly phase out giving
aid to Israel. The $1.2 billion given to improve Israel’s economy will be
reduced by $120 million each year until it will be diminished to no aid given at
all by 2008. This step toward cutting aid to countries that do not need it will
be very beneficial to the countries that need aid but do not receive it due to
insufficient funding.
The
number two recipient of foreign aid from the United States is Egypt. From 1948
to 1997, the United States gave $23,288,600,000 in aid to Egypt to be used for
economical and military purposes. Egypt’s economy is not doing as well as
Israel’s economy, but many more countries throughout the world need the United
States’ foreign aid money even more. Since 1998, the United States has given
less money to Egypt for economic aid. In 1998, the United States gave Egypt $815
million for economic purposes. In 1999, the United States gave $775 million for
economic purposes. And in 2000, the United States gave $735 million for economic
purposes. Though the sum of money given for economic aid has decreased, the sum
of aid given for military purposes has not decreased. From 1998 to 2000, the
United States gave Egypt $1.4 million in aid for military purposes. The
resources given for military aid to Egypt need to decrease also in upcoming
years so more aid money will exist for countries that need it.
Trade
is very important to every country in the world.
When countries trade, not only goods are traded but also are cultural
traits. A “web” is created when aid is given. With foreign aid, countries
can use the money to hire workers. When workers are hired, items are produced
that can be traded for other items that the country may not have. Also, when
more workers are hired, more money is distributed that can be spent. When the
people who work spend the money, more workers can be hired to produce more
products, therefore starting a trade cycle for that country.
Trade
is the principal driver in lifting global standards of living. When trade is
established among developing countries, the United States benefits as well.
Without trade, valuable goods such as coffee beans, books, computers, and jet
engines would not be easy to obtain. Without trading these valuable goods,
large, international corporations such as Starbucks and General Electric would
not be nearly as large in the business world.
Though the concept of having a corruption indicator is good,
some countries are unfairly dismissed from competition for receiving foreign
aid. The MCA needs to use more ways
to determine if a country is corrupt. One
way to eliminate countries being unfairly cut from aid competition could be to
establish a committee. This
committee would send inspectors to the developing country considered for foreign
aid money. These inspectors would
tour the country, visit with government officials if a system of government
exists, and then report to the committee on whether the country should receive
aid. Using this approach would cut
down on the margin of error that a survey presents.
Corruption is especially destructive in developing countries.
To fight corruption, corruption needs to be given a face.
Identifying both the perpetrators and the victims of corruption is
necessary. Identifying who the
perpetrators are, and dealing with them appropriately will help lower the level
of corruption. When the level of
corruption is lowered, the developing country may be considered now for foreign
aid. Governments of countries
around the world must crack down on corruption.
Also, governments of countries who are not overly corrupt must crack down
on neighboring governments who are corrupt.
For the MCA to reach its full potential, the MCA needs to
give aid to the countries that need it most, stress more firmly the importance
of trade development, and develop a system that ensures all countries needing
and deserving of aid to receive the aid.
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
mentioned the importance of aid from developed countries, foreign investment and
trade. These factors are very
critical for developing countries in order to have sufficient funds for future
projects. Developing countries
usually cannot raise enough money to improve their current state, so foreign aid
is needed from the developed countries in order to raise enough money to
improve. Foreign investment is
critical because it can lead to developing good relations with developing
countries as well as make money. When
developed countries show a need for the services of developing countries, the
developing countries feel wanted and tend to work harder to become a more
valuable asset. Trade is also very
critical to every country in the world. When
countries trade, goods are not the only items traded. Cultural traits are also traded as different cultures
interact and grow.
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?
·
The three items that are required more than funds are
citizens who are literate, who are healthy, and who are prepared and able to
work to improve their country. These
factors are important because developed countries cannot help a country that is
not fit to help us improve their country. Citizens
must be literate because they have to be able to communicate.
The citizens must be healthy in order to help build and be productive to
improve their country. The citizens
must also be prepared and able to work in order to be productive.
If one does not want to work, the individual does nothing for the people
who are trying to help make the country better.
Question
#3: When is money sometimes counterproductive, according to President Bush?
·
Money can be counterproductive when misused.
In certain countries, corruption runs deep.
The corruption leads to the money that is invested in the country’s
rebuilding to being stolen and used for illegal and negative purposes such as
buying illegal drugs and weapons. Some
nations refuse to enact sound fiscal policies.
When that happens, progress against poverty is nearly impossible because
the refusal to enact sound fiscal policies subsidizes bad policies, delays
reform, and crowds out private investors. For
this reason, giving money to aid developing countries can be counterproductive
when the wrong people are in control.
Question
#4: Describe the Millennium Challenge Account and include your description what
is anticipated from donors and recipients.
·
The Millennium Challenge Account proposed by President Bush
was designed to help developing countries escape from poverty and gain a sense
of political and economical stability. The
plan is worth approximately $5 billion over a period of time, which will be
raised by the United States, other developed countries, and the actual
developing countries. The plan sets
certain guidelines that developing countries must follow in order to gain aid.
The countries must show a just system of law, encourage economic freedom,
and invest in the citizens of the nation in order to receive the aid.
The aid will help fight poverty and overcome diseases. With this plan, the United States and other developed
countries will try to give aid to the countries that need it, providing equal
opportunity for quality education, health, and economic services.
Question
#5: What are the three broad standards that President Bush expects the leaders
of the developing nations to adopt?
·
President Bush is asking for all developing countries that
receive aid to adopt a growth agenda, increase support for private enterprises,
and focus more on education. First,
a developing country must develop a growth agenda in order to reach the
country’s full potential. The
growth agenda would include a list of goals that the country hopes to reach and
deadlines that are set in order to reach these goals.
The developing country will grow to its full potential when the goals on
the agenda are met. Second,
increased support for private businesses is important because the businesses
help economical growth greatly. In
many countries, no private businesses are present, so no jobs exist for the
people who live in the poverty to have. With
no jobs, money is not being circulated throughout the country so no jobs exist
for economic growth. Third,
focusing more on education is important because education is the major
foundation one must have in order to complete the first two goals.
Developing a growth agenda, supporting private businesses, and focusing
on education will help greatly with developing countries reaching their full
potential.
Question
#6: Describe President Bush’s challenge to development banks and explain why
or why not you favor it.
·
President Bush is challenging the development banks to help
stop debt. By banks providing
funding in the form of grants, which do not have to be paid back, rather than
loans, which do have to be paid back plus interest, the amount of
debt will decline. Banks should derive a growth agenda, which will measure the
improvements made in people’s lives. Also,
this agenda will increase the support of private business and focus more on
education. I support this thinking.
If the banks would offer more grants, the developing countries would be
encouraged to build and expand without having to worry about paying back
expensive loans.
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.
·
My estimate of
the United States GNP devoted to foreign aid was about seven percent.
I believed that my estimate would be under the actual figure, but I was
wrong. The United States has only devoted .11 percent of its GNP to
foreign aid. When compared to
various other countries that have dedicated more than one percent of their GNP
to foreign aid, this number is very low. Countries,
such as the United States, that have more money should give a portion of the
money to other developing countries.
Question
#8: Describe and defend a “Me First” attitude.
·
Foreign aid must be given to those who would benefit the
most. Schools must be established
for the uneducated and the youth. Food
must be supplied for hungry and starving. With
this in mind, we need to realize that certain nations need aid more than other
nations. The nations that meet most
of our guidelines should be considered first.
Then each nation must be looked upon individually.
The nation that is in the worst condition should be given aid first.
Certain countries may have the “me first” attitude, believing their
current situation is the worst one, simply because it is their situation and not
another country’s. Developed
countries must help those countries that believe they are in the worst
situation, realize that other countries are in greater need than they are at
that point in time.
Question
#9: Describe and defend a “Mutual Benefit” attitude.
·
Foreign aid benefits all countries that need it.
With foreign aid, the standard of living for the people of each country
will increase greatly. When a country’s level of education increases, the
country’s standard of living increases as well.
Increased education will also lead to a stronger economy.
Foreign aid also benefits the countries that give it.
Developed countries with a strong economy and established trading are
assets to the country who give the aid. In
the future, giving foreign aid will prove to be beneficial to the countries that
gave it. When the country that the
foreign aid is given to develops, the country will prove to be a valuable ally
to the country who gave the aid. Such
allies could help in the event of a national crisis, when the aid of other
countries is needed greatly.
Question
#10: Describe three unsuccessful foreign aid programs operated by the U.S.
government or private American citizens.
·
Three
unsuccessful programs operated through the United States are AmeriCares-Aid to
Iraq, Overseas Enterprise Funds, and Aid to Somalia.
The AmeriCares-Aid to Iraq Organization sent the first aid consignments
from the United States to Iraq since the first Gulf War. The organization is not
concerned with international politics or governments.
Rather, it is a humanitarian project that aims to relieve suffering among
ordinary Iraqi people. But the organization has not been successful due to the
embargo imposed on Iraq by the United Nations.
This embargo makes receiving needed goods nearly impossible through
regular means. With the lack of
needed goods and supplies, people are dying everyday because they cannot secure
enough money to even eat.
The Overseas Enterprise Funds was started by the U.S.
government and has established investment funds that provide the private sector
with billions of dollars in grants and guarantees. This organization has been losing money because the leaders
simply removed private investment that otherwise would have otherwise occurred.
Another reason this organization has failed is because they have been
very poorly structured, causing the loss of money and because poor-quality
investments have been made.
Aid to Somalia has been a failure because many glitches in the structure
of the aid organization. Aid has
been beneficial in some ways, but it also has not been very helpful. The easy availability of free medical supplies put
professional Somali hospitals out of business, while the medical supplies from
foreign aid were distributed by the aid workers that are untrained in the
medical field. Overall, foreign aid
has a questionable record as far as standard of living improvements.
Aid has proven to have little impact on the short life expectancy in
third world countries. Also, the means of income has been distorted by a handful of
very wealthy people.
Question
#11: Describe three successful foreign aid programs operated by the U.S.
government or private American citizens.
·
The three successful foreign aid
programs are Bread for the World, The ROC-Central American Economic Development
Fund, and International Cooperation and Development Program.
Bread for the World offers many means to help stop world hunger.
One mean is unifying the thousands of churches and community groups who
support Bread for the World's efforts by writing letters to Congress and making
much needed financial donations to the organization. Members meet with their representatives in Congress,
organize telephone trees, and have media coverage and reach out to new churches
throughout the country. Thousands
of local churches and community groups support Bread for the World groups across
the country and meet locally to pray, study, and take action.
Members of this organization also meet with their representatives in
Congress, organize telephone trees, and reach out to new churches.
The ROC-Central American Economic Development Fund works through the US
based World Health Organization to raise funds to supply financial and other
resources to promote and deepen economic, trade, and investment cooperation.
Many countries in Central America need money to help develop many areas
where poverty exists. The funds will also strengthen economic and trade integration
development in Central America. Trade
integration is needed because trading on an international scale shows a country
is usually doing well. The program
also offers feasibility studies for socioeconomic development projects and
programs in Central America. This
benefits students who are interested in this field of study.
The International Cooperation and Development Program works with the ROC
and World Health Organization to provide humanitarian aid to international
refugees and countries suffering from natural disasters.
The program gives emergency aid to countries in need.
Also, the program gives resettlement assistance and recovery and
reconstruction operations to communities that have been wrecked by natural
disasters. Additionally, the
program provides post-disaster evaluation and planning services, allowing
countries to rebuild and improve their essential medical, sanitation, nutrition
and public safety services. This program works with many other international
organizations in recovery operations after Hurricane Mitch struck Nicaragua in
1998. This is an excellent example
of the fast reaction and assistance during disaster recovery.
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.
·
I agree with Radelet’s thinking. The United States can help its own people as well as those
from developing countries. Though
it is good that the U.S. gives aid to developing countries, the focus should be
on aiding the people of the U.S. first. Though
the U.S. has millions of people who live in poverty and are uneducated, other
countries are in a far worse situation than the U.S. is.
Aid should be given to our people in need, but given the fact that the
U.S. is very involved with much of the world, the U.S. must help allies and
potential allies grow. If the Millennium Challenge Account was thought of from this
approach, we can help ourselves as well as help others.
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 U.S. foreign assistance”?
·
Radelet’s assertion is correct. One major goal of the Millennium Challenge Account is giving
enough aid to developing countries so they can become independent in the future.
Before the MCA was developed, the United States did not ask for a plan to
show how the aid money will be used to benefit the people in the future.
Many of the developing countries that need aid will spend all of the
money given to them quickly to satisfy the country’s needs at that time.
In order to prevent this possible misuse of money, developed countries
that give aid should require business plans as benchmarks for development so the
money given will be used for beneficial purposes for the country’s future.
The governments of the developing countries should also work with the
country’s citizens to devise a plan for the country’s development.
This approach is “a revolutionary change in U.S. foreign assistance.”
Question
#14: Which of Mr. Radelet’s three concerns regarding the MCA concerns you and
why?
1.
as more countries in this income range become eligible, there will be
fewer MCA funds available for the poorest countries that are implementing sound
development strategies.
2.
the make-or-break requirement may unnecessarily eliminate some countries.
3.
the separation of U.S. foreign assistance into two agencies could lead to
a lack of coordination and overlapping functions.
·
My major concern about the Millennium Challenge Account is
number two. Many developing
countries could possibly be eliminated unfairly if the make-or break it
procedure were a requirement. If a
developing country has a corrupt system of government, the people who live in
those countries still deserve a chance to grow.
The country may overthrow their corrupt government when they can become
financially independent, benefiting the U.S. and the developing country.
One major question is who will be the judge if a country is corrupt?
Corruption exists in every country throughout the world, so will
developing a corruption scale be necessary?
Many countries, when compared to the U.S., are either viewed as corrupt
or not corrupt. If this scale is
used to judge corruption, many countries that deserve aid will not receive it. The MCA was developed in order to aid developing nations, not
judge whether a country deserves aid.
Question
#15: There is evidence of an
increase in negative world opinion towards U.S. foreign policy, not necessarily
the American people. To counter
this negative perception of the U.S. some people want the U.S. to concentrate
more on weapons of mass assistance and less on weapons of mass destruction.
Please comment.
·
The increase in
negative world opinion towards United States foreign policy is caused by
ignorance and misinformation. Many
countries are opposed to the U.S. using weapons of mass destruction.
But in order to help certain countries with corrupt regimes, the U.S. has
to use weapons of mass destruction in order to help the country where the
American people are willing to spend a large sum of money to improve.
For an example, the corrupt and evil regime currently in place in Iraq
will not allow the U.S. to peacefully improve the country, so the U.S. is forced
to use the weapons of mass destruction in order to eliminate the negative
opposition. Only when the corrupt
people in power and all of the followers are defeated, weapons of mass
assistance can be used effectively.
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.
·
Since the United States’ economy is larger than most
countries, the World Bank is proposing that the US pay for a large share of the
$40-$60 billion yearly costs. This
means that the taxes that US citizens have to pay will be raised greatly in
order to pay for the $10-$15 billion requested per year.
Many of the US people would be opposed to have to pay more taxes in order
to help another country that cannot maintain itself.
Another argument against this tax increase is that why do not we use that
money for higher taxes to benefit our own impoverished people.
Most of the US people can afford a tax increase, but they would not
support the tax increase if all of the extra money paid goes to other countries
around the world. The priority
should be placed on helping our own people first, then the people of other
countries.
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 organization.”?
·
I think that the use of the funds for a government-sponsored
foreign aid program would be beneficial. Although
funds should support all positive organizations, not only government
organizations, this proposal may cause a conflict.
If the United States government handled all of the money, the system
would be very organized and regulated. Having
only one central agency instead of several smaller ones, more decisions would be
made to which countries receive how much money.
With deciding which types of programs to fund, a central agency would
also prove to be very beneficial. One
major program would be much more stable and less likely to fail.
The establishment of one central government agency to handle and
distribute all foreign aid money would be very beneficial to the US people.
Question
#18: How many countries would be affected positively by health-related
investments according to the Commission on Macroeconomics and Health (CMH)?
·
At least 83 countries will be positively affected by
health-related investments. The
countries would be positively affected by having better sanitation, which would
lead to healthier people. Healthier
people would lead to having a better education. Having a better education would lead to having more jobs.
Having more jobs would lead to a stronger economy.
Having a stronger economy would lead to establishing improved trade with
other countries. With all of these
factors, the country would be independent and secure.
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?
·
By the year 2015-2020, CMH
estimates that $360 billion would be gained annually due to lives saved and
increased economic growth. The CMH
expects to save 8 million lives in addition to gaining profits of around $315
billion dollars per year. Perhaps
this figure is most important. In
order to gain a substantial profit like the one stated, the United States would
need to invest about $2.5 billion in 2003.
By making this investment, the United States will take a large step
toward making billions of dollars and saving millions of lives.
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.
·
The H.R. 4524 bill was introduced
into Congress by Chris Smith of New Jersey and John LaFalce of New Mexico April
14, 2002. The primary purpose of
this bill was to require the administration to work with other creditor
countries and foreign aid institutions to help developing countries escape from
being poverty stricken. The bill
called for giving financial aid to developing countries as well as health care
and disease treatment and prevention. The
funds would be given to the developing countries from 2003 to 2005.
The bill was defeated in Committee April 29, 2002.
Selected Bibliography
Bush,
George W. “Millennium Challenge
Account.” Paper in Singer Packet.
2003, pp. 1-5. January 16, 2003. http://singerfoundation.org.
Condit,
Phil. “Understanding the Benefits
of Trade.” Action-Plan Homepage.
http://www.action-plan.org/outlook/benefits.htm.
“Foreign
Aid to Egypt.” The Jewish Virtual
Library. http://www.us-israel.org/jsource/US-Israel/egyptaid.html.
Fuller, Terry. Presentation on the Millennium Challenge Account --American Foreign Aid. Kinsley High School, Kinsley, Kansas. April 7, 2003.
Harsch,
Ernest. “Africa Mounts Drive
Against Graft.” United Nations
Homepage. December 1999. http://www.un.org/ecosocdev/geninfo/afrec/subjindx/134corru.htm.
“International
Trade is a Win-Win Situation.” National
Center for Policy Analysis. http://www.ncpa.org/pd/trade/pd022299i.html
Radelet,
Steve. “Initial Reactions to the
Announcement on the MCA.” Center
for Global Development. pp. 7-17.
November 27, 2002. http://singerfoundation.org
“U.S.
Aid to Israel.” Jewish Virtual
Library. http://www.us-israel.org/jsource/US-Israel/foreign_aid.html