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

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Should We Give Away Our Much Needed Money?
by Colt Cox
12th Grade

 

In August of 1992, south Florida was hit by a category 4 hurricane named Andrew.  This devastating disaster caused nearly 25 billion dollars worth of damage, making it the most expensive natural disaster in United States history.  As most Americans know, the United States faced another major tragedy on September, 11, 2001, with the collapse of the World Trade Center in New York City.  The twin towers collapsed after being struck by two airplanes flown by terrorists.  The United States gives billions of dollars to countries having problems, regardless of how rich they are, but did any other country offer to help us at the time of these great disasters?

Steve Radelet stated that in March 2002, Bush proposed an increase of foreign aid by 50 percent over the next three years through the creation of a Millennium Challenge Account.   This proposal stated that select countries would receive five billon dollars a year, given that the countries show that they are using this money “justly.” The U.S. is having many economic problems right now, being nearly seven trillion dollars in to debt. Despite this enormous figure, we still continue to give billions of dollars away each year.

I believe that the United States should not increase its commitment to foreign aid.  In fact, I believe that we should worry about our own problems instead of putting others in front of our country’s needs.  For example, The Oklahoma Institute for Child Advocacy states that in the United States a baby is born every minute to a mother under the age of 18.  Despite the overwhelming amount of teenage pregnancy, we are sending millions of condoms to Africa and other AIDS stricken nations to try and help stop the spread of this devastating disease.  These condoms should be made available to teens that may have intercourse but be too embarrassed or not have the money to buy condoms.  This would help stop the rising amount of teenage pregnancies in the U.S.

There are many cases of negative and also positive foreign aid.  Depending on the circumstance, foreign aid can either help or economically ruin a country.  In many instances when a country has became dependent on foreign aid from the United States and has stopped receiving it, a mass outbreak of deaths has occurred.  This was the case when our country was giving powdered milk to countries to use for nursing their children.  However, after two shipments were sent, they received no more.  Mothers who had stopped nursing because they were feeding their children this milk could no longer breast feed their young.  This lack of milk caused the children to die from starvation and malnutrition. 

How much good actually comes from foreign aid? Israel, one of the greatest recipients of aid will receive more than $3 billion this year. In fact, foreign aid for this country has risen in recent years. Bovard states that each new billion-dollar aid package was premature on the government's commitment to substantial economic reforms. Yet, after massive injections of U.S. aid, the government still effectively controls the economy and price controls are persistent. The government still directly or indirectly employs the majority of Israelis and owns the vast majority of land.  Foreign aid is supposed to help a country hold its own economically, yet we are still pouring money into Israel.

Another problem with foreign aid is that not very many U.S. citizens are aware of how much money we spend on foreign aid each year. A 2001 poll sponsored by the University of Maryland showed that most Americans think the United States spends about 24 percent of its annual budget on foreign aid—more than 240 times the actual figure.  Another poll conducted in July 2002 states that 81 percent of Americans support increasing foreign-aid spending to fight terrorism.

However, not all foreign aid is horrible.  President Bush has said that “poverty doesn’t cause terrorism.” Many experts, however, argue that poor countries with non-democratic governments could become havens for terrorism. Foreign aid has been proven useful in our fight against terrorism.  Without our money going to other countries, we may develop more enemies than the people of the U.S. could or would like to handle.   So, depending on one’s belief, foreign aid can be good or bad.  I believe that the United States should not increase its commitment to foreign aid, and we should think of our own problems before anyone else’s.

Questions

Q1- President Bush claimed that most funds for develop4ment do not come from international aid. He mentions three things that do fund development. What are they?

The funds that go to development come from domestic capital, from foreign investment, and 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?

Successful development requires citizens who are literate, who are healthy, and who are prepared and able to work. Development also depends upon financing.  

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

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

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

The funds in the Millennium Challenge Account will expand the fight against AIDS, bring computer instruction to young professionals in developing nations, and assist African businesses and their people to sell goods abroad, and give textbooks and training to students in Islamic and African countries.  Our agricultural technology will also be shared with these people.

Q5- What are the 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 the following standards: 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.

He challenges other nations to develop banks because he feels as though the World Bank will gain 20 percent of the American people’s support over the next three years. I favor it because I feel as though exchanging currency between countries will be more efficient, and more fair.

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.

I guessed that the United States spent around 7% of our national income on foreign aid in 2002.  I was very wrong, the actual percentage is .1%.

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

America should have a “Me First” attitude.  The United States has many problems that need to be  solved, just to name a few: drug abuse, homelessness, a fluctuating economy, aids, and terrorism. Take care of the problems at home before you go and save the world.

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

A “Mutual Benefit” attitude refers to the beneficial attributes that derive from commerce and diplomatic relations between countries. This helps to keep the peace, and it helps both countries build a better, more stable economy.

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.)

The first unsuccessful program is the Wheelchair Foundation The purpose of this foundation is “to deliver a wheelchair to every man, woman, and child in the world who needs one.” They have delivered over 34,404 wheelchairs in over eighty countries. The organization did not submit a report as to where all of their funds were going. They also did not report for any fund raising expenses. The program had another program, the Kenneth E. Behring Foundation, which supplied over $490,000 to help them ship the wheelchairs to the other countries.

The second unsuccessful program is Barnabas International. Barnabas International serves the staff of other missionary agencies, and they travel extensively to mission locations worldwide. Barnabas International provides counseling ministries for ministry families, retreats, Bible conferences, seminars, and marriage enrichment. This program was unsuccessful, because they did not have a clear objective and vision set out for the year ahead. After the year of 2001, Baranabas International had a loss of $31,933.

The third unsuccessful program is Aid to Somalia it 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.  

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.)

The first successful program is InterAction’s Solar Cookers International program it caters to refugees in Kenya. 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.

The second successful program third successful program is Doctors of the World. The Doctors of the World programs leads the fight to bring health education, health care, and social services to street children in America and abroad. American physicians and mental health professionals currently offer medical assistance to more than 20 nations. Refugees, torture victims, AIDS victims, and homeless children are relieved through services of this program.

The third successful programs is the Bureau for Latin America and the Caribbean it obtained the lead role in giving U.S. funds for reconstruction as a result of over $8 billion in 1998 hurricane damage for countries in Central America as well as in the Caribbean. Activities focus primarily on the economic recovery of the areas, transportation, public health, watershed management, housing repairs, and schools. Striving to rebuild the communities, the activities were based on community participation and international donor volunteers.

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.

There are still problems in America.  These problems are not being solved, they are being pushed aside.  In some cases, they’re getting worse, such as drug abuse.  I feel that the money that is collected through taxes should be used to better the people’s lives that are actually paying those taxes. If we can make that much of a difference in a foreign country with .1% of our national income, then just think of the possibilities in our own country.  

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.”?  

I feel that if the United States will be giving foreign aid to other countries they should be required to give us a detailed list of what they are using this aid for.  This would eliminate unreasonable expenditures. 

Q14- Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why?  

I believe that the separation of US foreign assistance into two agencies would create confusion and unreasonable spending.  It may become more of a competition between the two agencies than an agreement on the uses of aid.

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.

I believe that we should be worried more about ridding the world of weapons of mass destruction than on assistance.  We have enough of our own problems in the United States, getting rid of our defense could make things even worse.

Q16- What does the World Bank recommend as the United State’s “just and appropriate share” to reach the Millennium Development Goals by 2015?

America’s share would be 10-15 billion dollars.  I do not believe that Americas ever growing lower-middle class could afford to put such funds into foreign aid programs.  Our economy is suffering as it is without extra burdens. 

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.”?

Tax dollars should be distributed equally, but more money is required in certain fields.  Foreign aid may require billions more dollars than NGOs could manage.  The difference in expenditures are so great that saying spend this much on foreign aid, and this much in NGOs is an unrealistic figure.  

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

83 countries are affected positively 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?

$360 billion would be gained every year between 2015 and 2020 from an increase investment in health services.  

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.

Rep. Chris Smith and Rep. John LaFalce were two congressmen who introduced H.R. 4524.  The bill provides provisions to give aid to poverty stricken nations.  This would help those nations be able to stand on their own without much foreign aid.  Back