Medicine Lodge High School
Medicine Lodge, Kansas

Teacher: Devra Parker and Steve Germes


Foreign Aid: Does it Really Work?
Pake McNally
12th Grade

A family sleeping in their car; a little boy with only the clothes on his back; a mother worrying about how she’s going to feed her kids; a grizzled man wrapped in newspapers in a dark alley. This reality can be found all over the world, including the greatest country in the world—the United States. Should we continue our commitment of foreign aid with all the poverty that can be found right here? I believe that the main idea of foreign aid is great. Country helping country, battling starvation and disease that plagues so many nations around the world. It sounds simple just send food and money to the poor countries and the problem will go away! Yet, it doesn’t work like that. In order to improve those countries that receive foreign aid, the quality of the aid given must first be improved. Perhaps the Millennium Challenge Account is a step in the right direction.

The United States spends about $14 billion per year on foreign aid. That is much less than what most American citizens believe we give. Foreign aid has helped some countries greatly. “When Hurricane Mitch struck Nicaragua in 1998, the International Cooperation and Development Program helped with the reconstruction of 838 homes by August 2000 and continued the work well past 2001. This assistance literally resulted in the ‘transformation of Nicaraguan life’. But, the ICDF did much more than that from January to June 2001; they provided $697,000 in humanitarian assistance to seven different nations that were struck by natural disasters. Ever since the Marshall Plan was implemented in 1945 the United States began to help European countries recover from World War II, the world has seen a great change as the result of United States foreign aid. We provided aid to more than 140 nations. “Over the past 40 years, life expectancy at birth in developing countries has increased by 20 years. The past 30 years adult illiteracy in the developing world has been cut nearly in half. In India, the literacy rate for women rose from 39% to 54% in just the past decade. In Uganda, the number of children in primary school has doubled, six million Ethiopians are now benefiting from better education and health services.” Foreign aid has changed the lives of millions of people all over the world. But there is a darker side to this.

In some unfortunate cases the money and supplies designated to help citizens of some poor country landed in the hands of terrorists. In 2002, the United States Government game more than $120 million to the government of Uzbekistan, which just happens to be an ally in the war against terrorism. The government of Uzbekistan also treats dissidents to brutal methods of torture, such as “beatings, electric shock, temporary suffocation, hanging by the ankles or wrists, removal of fingernails, and punctures with sharp objects. Many countries that are known to torture its citizens receive foreign aid regularly from the United States. These include Egypt, Krygyzstan and Kazakstan. For Colombia, the United States gives over a billion dollars a year to finance its war on coca growers and leftist guerillas. The Human Rights Watch reports that the “human rights situation in Colombia has deteriorated markedly since the Clinton administration pushed through a package that greatly increased U.S. aid to Colombia in 2000. The number of massacres by paramilitary forces allied to the government is also skyrocketing.” This is not the only country that has seen a backslide in treatment of its people. “Millions of people have seen their lives uprooted or ruined thanks in part to United States contributions to the World Bank. After freezing the assets of the Holy Land Foundation that was known to give to terrorist organizations, Pres. Bush said, “Those who do business with terror will do no business with the United States or anywhere the United States can reach.” And, yet we continually throw money and supplies to governments that terrorize their people. Some even harbor terrorists such as the Taliban. Ever since September 11, the United States has been conducting a war against terrorism all over the world. American soldiers have been giving their sweet and blood in this war on terror. Even now we continue to freely give money to governments that are corrupt. Doesn’t it make sense to stop giving aid to countries that support terrorisms?

That is where the Millennium Challenge Account comes in. President Bush proposed the Millennium Challenge Account to the American people. If enacted, it would cause us to increase our annual cash flow into foreign aid by 50%. But, the MCA is more than just increasing the amount of money we give. There is a system of checks and balances that is the main frame of the MCA. The countries that want to receive aid would have to show how they were going to use the money in ways that benefit their people. Countries the United States considers corrupt would not receive an more aid.

Part of the MCA is a step in the right direction. The 50% increase, however, is not going to go over very well with the American people and it shouldn’t. That much of an increase is outrageous. However, the new rules that will be implemented are a step in the right direction. But, it is just a step in the long miles left to go to make foreign aid perfect.

Questions


Q1-Presidnet Bush claimed that most funds for development do not come from international aid.  He mentions three that do fund.  Why are they?

A2-Three things that fund the 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 that includes sound economics policies, and health 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 Millenium Challenge Account is an account in which rich nations contribute money to assist developing nations.  Greater contributions from rich nations will require a greater responsibility from the developing nations.  The accounts 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 provide text books and training to students in Islamic and African countries.  It will apply the power of science and technology to increase harvest 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- Pres. Bush challenged the development banks to provide up to half the funds devoted to poor nations in the form of grants, rather than loans in order to stop debt.  The president’s proposal is what the world needs the dept must stop somewhere it might as well be here and now.

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 out the answer.

A7- I think the United States contributes no more than 3% of our gross national product to foreign aid in 2002, why would we give anymore when we are in debt up to our ears and fighting a war?

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

A8-  A “Me First” attitude requires us to solve our problems at here at home first, such as debt, poverty and hunger that can be found in the U.S..

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

A9- Mutual Benefit is about helping other nations for the benefit of all.

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- Carlos Pescosodlido tried to give two million oranges to the poor people of San Francisco rather than let them rot in the field. Because of this he faced hefty fines.  Japan destroyed 8,600 tons of cabbages and radishes because their prices slumped below acceptable levels.  US officials ordered 3.5 billion oranges, 2/5 of all production, to be removed from the California market in order to raise prices.

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 from the same class will not be accepted.)

A11- The International Cooperation and Development program gave more than $697,000 in aid to countries hurt by natural disasters.  The Marshall Plan involved helping European countries get back on their feet after World War 2.  Economic Co-operation and Development have helped solve some of the poverty and hunger seen in third world countries.

Q12- 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 to citizens of less developed countries.  Explain why you think we can or cannot offer aid to both.

A12- I think we can and should do both.  For the good of our country and for the world.  We are the most powerful country in the world.  If we don’t step up and start helping other countries, no one will.

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-  I think it is a big change in foreign aid assistance.  We don’t need to just throw money at poor countries that have no idea at how to spend it for their benefit, they need to be able to show where the money is going and how it will benefit their country.

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 separation of foreign aid assistance split into 2 agencies could possibly lead to confusion and lack of cooperation.

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-  I think we should have both, but Weapons of Mass Destruction must be the first priority, we can’t help other people out much during nuclear fallout.

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-  An increase of 20%

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 feel that tax dollars need to remain in the government.

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

A18- 13 countries would be eligible in the first year.

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- According to them it would be around 360 billion dollars

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- Mr. Smith of Michigan            Back