Newell-Fonda High School
Newell, Iowa
Teacher: Connie Doonan

 

foreign aid
By Kyle Doonan
12th grade

Each day, over a billion people in the world lack basic food needs.  In addition, each day 35,000 children under the age of five die of starvation or preventable infectious disease.  Approximately one-fifth of the world's population, over one billion people, earns less than one dollar a day. Recently President Bush has proposed the Millennium Challenge Account.  Under the MCA, foreign aid would be amplified and there would be a list of regulations for those countries who qualify.  The Millennium Challenge Account is a great step for expanding foreign aid.

The citizens of the United States have many concerns about increasing foreign aid.  First, many citizens do not believe that foreign assistance has...accomplished anything.  Citizens feel that money is wasted in foreign countries when it could be put to better use in the United States.  Second, many citizens believe that the United States carries the heaviest load when it comes to foreign assistance.  Citizens sometimes feel like the United States is the only country involved in foreign aid.  Finally, some citizens believe that the United States is just propping up dictators with foreign assistance dollars.  Citizens believe that the United States is aiding dictators through foreign aid.

Foreign aid is given a bad name because of the views of various United State citizens.  In a recent poll, Americans were told that less than one-half of one percent of the national budget is spent on foreign aid.  The result of this was an overwhelming majority to maintain or even increase the amount spent on  foreign aid. United States foreign aid programs have had several distinguished accomplishments.  France, Spain, Portugal, South Korea, Taiwan, Italy, Germany, and many others have all excelled through foreign aid.  More than three million people are saved every year through immunization programs funded by foreign aid.  Oral hydration therapy is credited with saving tens of millions of lives in Bangladesh, which is also funded by foreign aid.  In the 1940’s and 1950’s the United States did carry the largest load of foreign aid, but that is not the case now.  Japan despite its small size and smaller economy, still dedicates more to foreign aid than the United States.  The United States is not promoting dictators with foreign aid.  The United States is doing the opposite by promoting democracy and American ideas to foreign countries.  Foreign aid will only work with nations that are good partners in development. With the use of foreign aid, over fifty countries have switched over to a successful democratic government.

The United States Outstanding Public National Debt as of January 7, 2003 is at $6,415,051,562.  The National Debt has continued to increase at an average of 1.3 billion dollars per day since September 28, 2001.  The estimated population of the United States is 288,864,005 so each citizen’s share of this debt is $22,207.88.  In 2002, about eleven percent of the entire national budget was set aside just to pay interest on the National Debt.  So if the percent of foreign aid increases so will the interest the United States will pay for the National Debt. If foreign aid is going to increase, how is it going to be possible for the United States to come up with the money for such a hefty increase?  After all, isn’t the United States in an economic recession? 

Foreign assistance has helped create some of this great country’s most dynamic markets for exports, and the trade that has resulted from foreign aid has had payoffs far higher that the initial costs of sending American expertise abroad. Over the past ten years, the United States Agency for the International Development has sent fifteen million dollars in technical assistance for many different developing countries.  Because of this fifteen million dollar investment, the United States has come up with a fifty billion dollar annual market from these countries.   The United States has the largest share of these markets and cannot afford to give its competitors free run of these rapidly growing economies.  Therefore, the millennium challenge would be a good step towards creating more income for the United States.  Because foreign assistance is an investment to the United States, it more than likely will help with the United State’s deteriorating economy.

The Millennium Challenge Account is definitely a great way to enhance foreign assistance.   The United States may not have the money now, but foreign will help manage the National Debt in the future.  foreign aid has taken many large strides and will continue to with the use of the Millennium Challenge Account.  Foreign aid supports everything the United States stands for.  The Millennium Challenge account is necessary for the United States to achieve its goals.

Questions

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?

-They come from domestic capital, from foreign investment, and especially from trade.

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?

-It also requires citizens who are literate and healthy.

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

-When the money is not accompanied by legal or economic reform.

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

-To give money in a fair way and evenly distribute through who needs the money the most.  The receiving countries need to meet a standard in order to receive money.  In the end the Millennium Challenge Account will help the world overall.

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

-The three standards are political reform, legal reform, and economic reform.

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

-President Bush challenges the development banks to provide up to half of the funds devoted to poor nations in the form of grants, rather than loans. 

I do not believe we should just give out money and get nothing in return.  If the country does flourish then they could repay us maybe not the same amount, but something.

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. 

2.25% guess and .1 is the real percentage.

8-Describe and defend a “Me First” attitude.

“Me First” means we should take care of our own countries problems first.  We should help our poor, fix our National debt, and turn are economy around before solve going to help and fix other countries problems.

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

-Everyone needs to succeed before the others can succeed.  One country depends on the others to do well. So they help each other to better themselves. One prospers, all prosper.

10-Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens.

All of these countries failed Micronesia, Bangladesh, India, Egypt, Haiti, Guatemala, and Kenya. (not adequate answer)

11-Describe three successful foreign aid programs operated by the U.S. government or private American citizens. 

South Korea, Indonesia, and even Japan all went from third world countries to first world countries it just does not happen over night. (not adequate answer)

12-Steve Radlet, 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 don’t think this can happen we have a hard of enough time trying to turn are economy around and making everything work in our own country.  

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.”?

-I do not think this is a good idea.  I think since this is our hard-earned money we should be the ones who decides to get this foreign aid. 

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

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.

the make-or-break requirement may unnecessarily eliminate some countries.

the separation of U.S. foreign assistance into two agencies could lead to a lack of coordination and overlapping functions.

-The first concern worries me the most because the poorest countries seem to be the neediest of the money.  So the money should be granted to need and cooperation in the plan.

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 (WMA) and less on weapons of mass destruction (WMD).

-I believe we need to concentrate on both equally.  They both correlate together you need the W.M.A. to protect from a nuclear war and W.M.D.  to protect ourselves from being over thrown.

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.

-The World Bank wants the amount for foreign aid to be $40-$60 billion a year by 2015.  The U.S.’s, share of this amount would be approximately an additional $10-$15 billion dollars.  I do not think we can afford this. 

We are going back into national debt and are economy is dropping more and more each day.

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 organizations.”?

-I do not think it is a good thing.  We do not need higher taxes in order to help people we do not know.  instead we need to help us Americans out.

18-How many countries would be affected positively y health-related investment according to the Commission on Macroeconomics and Health (CMH)?

83 countries

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?

-$360 billion would be gained annually.

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.

Chris Smith (R-NJ) and Rep. John LaFalce (D-PA) The purpose of these bills is to require the Administration and other creditor countries to amend the indebted countries’ debt relief program to provide debt reduction for beneficiary countries.
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