Medicine Lodge High School
Medicine Lodge, Kansas
Teacher: Devra Parker

 

The Harsh Realities of Foreign Aide
Ashley Becker
12th Grade

A little girl sits alone in a cold, abandoned apartment crying and shuttering in the bitter cold.  She is not old enough to work, and her parents have too much pride to accept charity; inevitably she is the one who suffers.  This little child goes without proper nourishment many long, horrendous days.  Her parents work 12 hour shifts and at night; you can find them searching through dumpsters, trying to find food or clothing that someone else has found unsuitable.

The reality of this is that these people live within the United States.  WE as a country are willing to waste truckload after truckload of food just so the average person can make a buck or two.  While I do not disagree with foreign aid, I think we are too busy looking for solutions to everyone else’s problems that we sometimes forget that have problems and needs that must be met also.  When I hear that Millennium Challenge Account being referred to as both extraordinary in its magnitude and revolutionary in its approach, I wonder what makes it so different then any of our other resolutions.  In researching this matter, I found that the MCA has several requirements that countries are obligated to meet.   Some of these requirements include the following:

·        Countries must be governed justly, invest in their people, and encourage economic freedom.

·        MCA funds will flow to countries where governments and citizens partner to set development priorities.

·        MCA will require recipients of funding to agree to a business-like contract that sets benchmarks and responsibilities on the way this money will be invested.

·        The MCA affirms that economic growth is key to development and poverty reduction.

·        The MCA recognizes private sector growth as critical to sustaining health, education, and other development gains and encourages a healthy climate for entrepreneurs. 

The MCA builds on the reality of the global economy and the success of democratic institutions.  It recognizes our responsibility and opportunity to help leaders deliver on the expectations of their people.  The Millennium Challenge Account is optimistic about the potential of people in poor countries to chart a course to peace and prosperity with effective support.  However, the MCA is not the sole answer, but it is part of a broad array of administration efforts to spur development.  Along with these efforts, the MCA supports our overall foreign policy, including the struggle against terrorism as it tries to accomplish the success of all societies where people have a stake in the future and value partnership with the United States. 

The Millennium Challenge Account recognizes that development success is driven by a country’s own efforts, policies, and people.  No matter how much support and encouragement is given, we cannot substitute for genuine commitment, nor can we take the hard steps needed for a country to gain its own headway and become a successful nation.  With this in mind, the MCA demands accountability and results; each successful country proposal will include clear development objectives and benchmarks.  Meeting these benchmarks will be key to continue funding.  Once a year the MCA will run a competition among the eligible countries to determine which qualify for the MCA.  Qualification is based on 16 indications measuring country performance in the three areas of ruling justly, investing in people, and encouraging economic freedom.

Last, but not least, we must consider the funding.  The initial funding request for the MCA is 1.3 billion dollars.  This is the first stage of a ramp-up that will increase to the five billon dollars by 2006.  That is a 50 percent increase in the core U.S. development assistance over 2001 levels, and represents an unprecedented effort to reduce poverty.  President Bush believes 1.3 billion dollars will provide sufficient resources for a strong start.  He deliberately chose to increase request over time to ensure funds would match, but not exceed our nation’s ability to use them.

The MCA’s goals and missions are clear: they are to raise countries out of poverty by promoting sustained and broadly shared economic growth and to prove itself and influence how multilateral and other bilateral assistance programs are designed and conducted.  With these goals in mind, most are convinced that discontent and instability will be alleviated, and it will promote our own security and well-being even as it brings a better life to millions around the globe.  Therefore, we are trying to help others as we help ourselves. 

With this in mind, I think the Millennium Challenge Account could be a very successful and beneficial program to the United States.  I think that if we are helping others, and ourselves at the same time, spirits will be raised and hopefully nothing but triumph will come from our successes.  Yes, the United States is very fortunate that we can aid other nations, but we need to remember that our country is no where near perfect.  There are things we need to be doing locally as well as abroad.  Hopefully one day, there will be no little girl sitting alone shivering because the nation we live in will decide that if everyone lends a hand, we will not strive to be the best, we will be.

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?

A1- Three things that fund development are domestic capital, foreign investment, and 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?

A2-Two items other than funds needed for development in third world countries are good government which includes sound economic policies, and healthy and educated citizens.

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

A3- Money is sometimes counterproductive when nations refuse to enact sound policies because it subsidizes bad policies, delays reform, and crowds out private investment.

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

A4- The Millennium Challenge Account is an account in which rich nations contribute money to assist developing nations.  Greater contributions from the rich nations will require a greater responsibility from the developing nations.  The account will be used to expand the fight against AIDS, bring computer instruction to young professionals, assist African businesses and their people to sell goods abroad, and proved text books and training to students in Islamic and African countries.  It will apply the power of science and technology to increase harvests where hunger is greatest.  In turn, these nations must adopt the reforms and policies that make development effective and lasting.

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

A5- Three broad standards that are expected of developing nations to adopt are ruling justly, investing in their people, and encouraging economic freedom.

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

A6- President Bush challenged the development banks to provide up to half of the funds devoted to poor nations in the form of grants, rather than loans in order to stop debt.  I believe President Bush’s approach to ending debt is just what the world needs.  Numerous people in America and all over the world live in debt, and nations should provide an example of debt-free living.

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.

A7- I think the United States government committed 8% of our national income to foreign aid in 2002.  The actual amount was .1%.

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

A8- A “Me First” attitude requires taking care of our own nation’s debt and problems with hunger before giving our money to other countries to solve their problems.  After we have eliminated America’s struggles, then we need to give the amounts of money to other countries’ needs before we tell other nations to do the same.  Meaning we take care of our problems first and also give first.

Q9- Describe and defend a “Mutual Benefit” attitude. (Use your head ¾ you won’t find the answer in the required reading.)

A9- A “mutual benefit” attitude involves helping other nations so that we will also be helped.  It is an attitude of working together for the common good of everyone- not just ourselves.

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.)

A10- World Vision is an example of an unsuccessful foreign aid program.  Looking at their website, they give no examples of feeding hungry children or developing countries.  Also, they have a deficit of money. Food for Peace seems successful in that they provide food to foreign countries, but in all actuality, the food they provide interrupts the local agricultural market.  Finally, the U.S. Agency for International Development admits that only a handful of countries that started receiving U.S. assistance have ever graduated from the dependent status.    

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.)

A11- The International Cooperation and Development Program provides “humanitarian aid to international refugees or countries suffering from natural disasters.”  When hurricane Mitch hit Nicaragua, this program provided fast reaction and assistance.  The United Nations Children’s Fund is another positive form of foreign aid.  It provides education, immunizations, child protection, HIV/AIDS prevention, and early childhood programs.  Feed the Children also provides foreign aid in the form of food to other countries.  They also recently built the ABC Children’s Center in Africa.   

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.

A12- I believe that the majority of money should be concentrated on solving America’s problems, but I believe it would be a mistake to totally cut off our support of other nations.  It is crucial that America works on getting out of debt and solving our hunger and unemployment dilemma, but it would be dangerous to completely isolate ourselves from the rest of the world, especially for the sake of security.  Because Americans are not the only people, it is important we support the common good of man.

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.”

A13- This “application process” is an extremely important step in foreign aid.  The purpose of giving the money to other nations is so that they can develop and become stronger so we need to make sure they use the money for those objectives.  I believe the money should be given in allotted amounts which could cease being given if not used efficiently.

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.

A14- The possibility that as more countries in the income range become eligible, there will be fewer MCA funds available for the poorest countries that are implementing sound development strategies is the biggest concern.  We do not want our money to be spread so thin that it does not accomplish our goals.  The solution to this problem could be to lower the required income so that only countries in desperate need receive funds. 

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.

A15- In order to concentrate on weapons of mass assistance, it is required that we also concentrate on weapons of mass destruction.  We have to protect our freedoms and the American people in order to be able to give assistance to other countries.  Therefore, it is important to do both simultaneously.

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.

A16- The World Bank recommends an additional $10-$15 billion annually to reach the Millennium Development goals by 2015.  No, the American people and government are already billions of dollars in debt.  Also, many citizens are experiencing unemployment.

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.”?

A17- I think it would be foolish to just hand the funds to non-governmental organizations.  It is important that we make sure of exactly what our money is funding.  When money is given to NGO’s and grassroots organizations, we should first know it would be used properly.

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

A18- Eighty-three countries would be positively affected by health-related 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? 

A19- Between 2015 and 2020, $360 billion would be gained annually due to lives saved 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.

A20- Christopher Smith and John LaFalce introduced H.R. 4524.  This bill substantially increases resources available for human development and poverty reduction in heavily indebted poor countries. It encourages the Secretary of Treasury to immediately start work with creditors to reduce debt.    Back