Medicine Lodge High School
Medicine Lodge, Kansas
Teachers:  Devra Parker and Steve Germes

 

Foreign Aid: Right or Wrong
Aaron Michael Etheridge
12^th Grade

Picture this: You ask your girlfriend what’s wrong and she replies, “Nothing.”  “Come on, Sweetheart, tell me what’s the matter. I know something’s bothering you.”  She turns around with a demon-look in her eyes.  “NOTHING!”  After getting into a huge argument with her, you go to your friends and ask for their advice on what to do.  They tell you just to ignore her and leave her alone until she cools off.  Of course, this does not work because what she really wants is your attention, and when you ignore her, this makes her even more angry.  It is as though every attempt from you is an exercise in failure. 

America’s relationship with foreign aid is similar to this.  Our country’s foreign aid programs try to help poor countries by giving them financial assistance, when, in reality, it is tearing them apart.  When asked if America should continue its commitment to foreign aid, my answer is negative.  The Millenium Challenge Account could be a step in the right direction, but the entire system needs an overhaul.

Ken Schooland, author of “The Disaster of International Foreign Aid Programs,” exclaims.  “You hear in the news everyday that millions are starving in various countries, specifically Africa, but it is not uncommon to read about food being destroyed on our own soil, as well as in Western Europe, and Japan.  The reason that tons of food is being destroyed is so the official agricultural program will be able to keep the food off the domestic market to raise farm prices.  For example, Japanese officials acknowledged the press, telling them that they plan to destroy 8,600 tons of cabbages and radishes because their prices plummeted below “acceptable” levels.  These are just a few examples of how the foreign aid programs are wasting resources that are already available to them; however, they destroy them to raise the market value of products instead of sending goods to countries that need it.  The U.S. market officials decided that 3.5 billion oranges, two-fifths the nation’s production, would be destroyed from the California market to raise prices.  Today, Carl Pescosolido faces enormous fines, since he chose to give two million oranges to the poor people of San Francisco rather than let his crop rot in his fields.  This is how the American government is wasting food valuable resources to help their foreign aid program:  they decide to let their rot in the field to raise market prices; however, in the long-run it ends up costing the government more money than it would have if they gave it to the hungry. 

According to Doug Bandow, author of “Foreign Aid Costs Us More and Gains Us Less,”  “’There is plenty of money in wasteful and ineffective economic development aid and other nonessential accounts to cover the cost of these new operations.’  Since World War II the United States has spent nearly $1 trillion (in 1997 dollars) on foreign aid.  The result is debt, dependency, and poverty.”  The Third World Nations have been given significant amounts of foreign aid but have been losing ground.  Today, 70 developing countries are in worse shape than they were in the 1980’s and 40 are poorer than in 1960. 

Does our nation think that it is helping foreign countries?  I am not seeing a bit of help; in fact, it seems to me that countries would be better off by themselves.  Being in a small mid-western town in Kansas with a population of 2,500, I might forget what is happening outside the doors of my hometown.  By living in the rural area, I cannot fully soak in how the government works since we are not around it as often as people in the city are, who might be more apt to in get controversies over business situations.

Today the American and European people are compelled to pay five to seven times as much for sugar as they would have to pay on the world market.  The Japanese have to purchase domestic rice at five to seven times higher the price of the rice market, which is produced by farmers in Thailand.  The reason for doing this is so the domestic consumer will not reduce local food prices.  This is one of the reasons why the foreign aid program is a joke: we are making the locals pay almost ten times the price of what their crop is worth, just so they can eat their food that they have grown.

When asked if America should continue its commitment to foreign aid, my answer is no.  The MCA could be a step in the right direction, but the entire system needs an overhaul.  I have given specific examples of how the U.S. Government is shooting themselves in the foot.  They are causing foreign countries to go in further debt, and we are dragging ourselves down with them.  If the government could get a new plan on how they are going to use their money, and make use of the sources they already have, I say go for it. But if they cannot put together a plan, we are going to drag ourselves into a greater financial downfall.
  

QUESTIONS  

Q1- 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 most funds for development come from domestic capital, from foreign investment, and especially from trade.

Q2- 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?

President Bush mentioned that prosperity and opportunity, and security development influences success in a third world country.  Opportunity increases prosperity, which in turn defeats terror and creates security. 

Q3- When is money sometimes counterproductive, according to President Bush?

Money is counterproductive, according to President Bush, when nations refuse to enact sound policies.  These unsound policies do not fight poverty due to bad policies, delay reform, and the crowding out of private investment.

Q4- Describe the Millennium Challenge Account and include in your description what is anticipated from donors and recipients.

Millennium Challenge Account will reward nations that root out corruption, respect human rights, and adhere to the rule of law.  Healthy and educated citizens are the agents of development, so we will reward nations that invest in better health care, better schools and broader immunization.

Q5- What are the three broad standards that President Bush expects the leaders of the developing nations to adopt?

President Bush expects leaders of developing nations to adopt the broad standards of ruling justly, investing in their people, and encouraging economic freedom if they want aid from America.

Q6- Describe President Bush’s challenge to development banks and explain why or why not you favor it.

The challenge that banks should adopt is a growth agenda, increasing their support for private sector enterprises, and focus more on education, as the Inter-American Development Bank has done.  I strongly disagree with this idea; however, I think President Bush has a good point, but is not well organized at this point in time.

Q7- 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.

Our guess was 65.32% that was committed to foreign aid in 2002.  After doing much extensive research we acquired the knowledge that the US Government was committed to 40-50% depending on stability of the government of the poor countries.

Q8- Describe and defend a “Me First” attitude. (Use your head ¾ you won’t find the answer in the required reading.)

It is a selfish attitude where the people only think of themselves.  This attitude is displayed daily through individuals, groups, and entire nations. 

Q9- Describe and defend a “Mutual Benefit” attitude.

Mutual Benefit” attitude is the belief that if together we work together we will receive those benefits.  If this approach were practiced, our nation and world would see the great benefits.  In turn it would encourage countries to work together for the common cause.

Q10- Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens. (Do not use the programs discussed in the testimony of Faith Action for People-Centered Development Policy included in your required reading. Conduct research using the Internet. Duplicate examples from the same class will not be accepted.)

World Health Organization foreign aid program has had its successes but has proved its lack of success.  Its common goal is to provide health care to all.  Programs supported by this organization have thrown money away.  World Health Organization tends to be partial to displaying health messages upon billboards.  In third world countries this would rarely spread any sort of message. 

Another unsuccessful program is World Vision.  World Vision’s goal is to help children in poverty stricken areas by providing them with immunizations, clothes, health care, and an education.  Few children are actually sponsored, leaving still many children in need.  World Vision fails to spread the funds out among those in poverty.

Lastly, the Overseas Enterprise Fund has failed to be very efficient.  Tax dollars are used to higher “private fund managers” who use tax dollars to invest in capitol.  The Enterprise Fund has little improved the lives of foreigner sin need, and has wasted a great deal of money. 

Q11- Describe three successful foreign aid programs operated by the U.S. government or private American citizens. (Do not use the programs discussed in the testimony of Faith Action for People-Centered Development Policy included in your required reading. Conduct research using the Internet. Duplicate examples from the same class will not be accepted.)

SOS-Kinderorf International program in Gulu, Uganda is a successful program sponsored by America giving emergency relief.  This program is funded through donations, and the money will be used to create 15 homes and a small hospital for children and young women.  These juveniles include those who have been affected by national war.  Long term goals include the development of a stable village.  I consider this a huge success in helping those in great need in a region. 

Habitat for Humanity, a non prophet, international, organization has been successful in providing more than 125,000 affordable houses for the needy.  With this program people of every color and belief come together to help those who otherwise would not have a home.  How is that not a success?

Lastly, Child Sight is a prominent foreign aid program dedicated to helping children see better.  Certain doctors donate their time through Child Sight and provide free screenings and eye glasses.  In many cases children in turn do better in school and enjoy more activities.  

Q12-Steve Radelet, Senior Fellow at the Center for Global Development, believes we can do both ¾ 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.

Steve Radelet has obviously blinded himself from reality.  Currently we are aiding other nations.  Yet in our own country we are failing to address our own poverty issues.  Obviously we have already failed; the systems need to be strongly revised.

Q13- 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."

Mr. Radelet’s assertion is a step in the right direction; however, America is responsible for too much financial support to other countries.  In several cases America aids countries that support terrorist groups.  How is that not fueling the fire of destruction?  More than just a proposal, is necessary to qualify for aid.  An extensive review of the country, its issues, and how they respect America’s values is crucial in deciding whether or not they deserve or need help.

Q14- 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 US foreign assistance into two agencies could lead to a lack of coordination and overlapping functions.

The separation of US foreign assistance into two agencies frightens me the most.  If the structure and commitment is not present, this system could demolish its self.   Thus, a program in which an extreme amount of money was invested in fails to aid anyone and serves as a national joke. 

Q15- 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 (WMA) and less on weapons of mass destruction (WMD). Please comment.

Weapons of mass assistance and weapons of mass destruction are like night and day.  WMA are a good source to make America look better; however, they do not.  By cheapening the price of charity, our foreign aide is worthless and is still wasting billions of dollars.  WMD will help us defend our country from countries that the United States pours money into when they support terrorist groups. Maybe the United States should take a look at the big picture and see we are setting the nation up for disaster. 

Q16- 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.

Of course not, our citizens can not afford this increase.  Take the economy for example.  After September 11, 2001 stocks crashed and the nations morale dove.  Together we made it through, yet still today we are facing these issues.  It is too soon, too much, for American citizens. 

Q17- 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."

While the thought is considerate America simply does not currently have the money or time investment.

Q18- How many countries would be affected positively by health-related investments according to the Commission on Macroeconomics and Health (CMH)?

A total of 83 countries would benefit from these investments.

Q19- 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 $360 billions would be gained annually through saved lives and increased economic growth. 

Q20- Use the Internet for your research and name the two congressmen who introduced H.R. 4524. Give a 2-line synopsis of that bill.

Christopher Smith and John LaFalc were the congressional representatives who introduced H.R.4324.  This bill basically asks for the financial support of America to help those countries in great need.            Back