Newell-Fonda
High School
Newell, Iowa
Teacher:
Mrs. Doonan
On
March 14, 2002, President Bush presented the Inter-American Development Bank
with the Millennium Challenge Account in which he revealed an additional five
billion dollars to be spent on foreign aid if approved by the United States
government. This plan will
considerably change the United States budget for the future. The United States is not prepared nor can it afford to
increase its commitment to foreign aid; therefore, the Millennium Challenge
Account that Bush proposed is not a step in the right direction.
The Millennium Challenge Account
is an honorable idea to increase foreign aid for several reasons.
The proposal would definitely help out countries that are less fortunate
and that don’t have as many opportunities as those in the United States. With
this proposal, the amount of money given to foreign aid each year will increase
which will allow the United States to provide funding for more countries.
This idea will motivate other countries to work harder so that they are
eligible for aid. It will also
incite them to eliminate any terrorist that may harbor there.
If enough countries are inspired to do so, terrorists will not have a
place to reside. The extra money will allow countries that have high
unemployment, inadequate education, high mortality rates, and mass corruption to
better themselves and in the long run this will benefit the United States. These
countries could make products that the U.S. could import at a lowered price
because of their hospitality. It would also bond better ties between the
benefactors and the United States therefore providing potential allies.
The Millennium Challenge Account is a good example for other countries to
provide funds for developing countries. The
Millennium Challenge Account, thought up by President Bush, also makes him look
like a great humanitarian. However
the presidents qualifications for the Millennium Challenge Account could also be
viewed as a bribe.
The Millennium Challenge Account
is an unfavorable proposal not only because it can be viewed as a bribe, but
also because the national debt is already outrageous.
The United States has already spent thirty-six billion dollars annually
on foreign aid from 1997 to 2000, which adds up to 144 billion dollars.
The United States already leads the world in humane donations, so we
already set a good enough example. The
United States is already spending tremendous amounts of money on foreign aid as
well as other affairs, which has put the United States in extreme debt.
The United State’s debt is already well over 6 trillion dollars.
The U.S. government needs to focus on the United State’s debt before it
deals out money to other countries, or it will find itself poverty-stricken just
like the countries it is trying to help. The
ODA (Official Development Assistance) will already be handing out ten billion
dollars by 2006, yet Bush still wants to spend five billion more in 2006.
That totals to fifteen billion dollars spent in a single year for foreign
aid (The United States Agency for International Development).
By the United States deciding the qualifications for the Millennium
Challenge Account, they are trying to conform other countries into a democratic
system. The leaders of other
countries trying to receive aid could be lead abroad with the money, which could
tamper with their judgment of what is best for their country.
Also, by allowing countries with per capita incomes up to $2,975 in 2006
(the World Bank cutoff for lower middle income countries), money will be taken
away from the lower income countries that need the money more.
The countries that have more money are more capable of meeting the
requirements set by the United States and overpowering the lower income
countries. In all surveys there is
always a margin of error, and even though the United States is using the best
available corruption indicator, there is still that margin.
If an error were to occur, some qualifying countries could be cheated out
of money.
Finally, the United States
already has enough money tied up in other affairs.
The Millennium Challenge Account will provide much needed money for less
fortunate countries and make Bush look like more of a humanitarian. It will also allow other countries to provide the world with
a higher quality of goods and services. Even
though the Millennium Challenge Account may provide better employment, better
education, lower mortality rates, and less corruption, it still has its flaws.
The United State’s debt is so deep right now the budget needs to be
tightened instead of loosely spending money in other areas.
There cannot be a true way to decide on which countries actually qualify
for money and which do not. If a
country feels that they’ve been cheated out of money, it may make them feel
more hostile towards the United States. Room
simply cannot be made for the Millennium Challenge Account in the United States
at this time.
Works
Cited
Bureau of the
Public Debt. www.publicdebt.treas.gov/opd/opdpdodt.htm
January 8, 2003
The United States
Agency for International Development.
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?
Foreign
investment, Trade, Domestic Capital.
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?
He
mentioned that the people have to be healthy and able as well as willing to
work.
Q3-
When is money sometimes counterproductive, according to President Bush?
According
to Bush it is when countries do not use the money to adopt sound policies.
Q4-
Describe the Millennium Challenge Account and include in your description what
is anticipated from donors and recipients.
The
donors will expect recipients to get rid of terrorists and to better themselves
and the recipients will expect money from the donors.
Q5-
What are the three broad standards that President Bush expects the leaders of
the developing nations to adopt?
He
expects them to rule justly, to invest in the people and to encourage economic
freedom.
Q6-
Describe President Bush’s challenge to development banks and explain why or
why not you favor it.
Bush
challenges the development banks to provide up to half of the funds devoted to
poor nations in the form of grants instead of loans. I believe that it is a
waste of money.
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
found on the internet that the U.S. government gives .11 percent.
Q8-
Describe and defend a “Me First” attitude. (Use your head ¾
you won’t find the answer in the required reading.)
A
“Me First” attitude is when someone worries about their own well being first
and if everything is good for them then they might help someone else out but
they mainly worry about themselves.
Q9-
Describe and defend a “Mutual Benefit” attitude. (Use your head ¾
you won’t find the answer in the required reading.)
The
“Mutual Benefit” attitude is the attitude that if you help someone else in
the long run it will come back to benefit you.
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
(AID) has failed several times in benefiting other countries with foreign aid.
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.)
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.
I
don’t think that we can over both simply because the U.S. does not have the
funding and we are already in enough debt the way that it is.
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
think that he is right that it is revolutionary but who is to say that the
countries would carry out these proposals after they receive the money.
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
fact that the surveys done to decide whether or not the countries receive money
are not 100% exact and could cheat
some countries that need the money out of it.
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
don’t think that the U.S. really needs to focus on what other countries think
of it. No matter what happens there will always be disagreements.
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.
The
World Bank recommends 40-60 billion dollars. This is a great increase but I cant
really say what the situatuion is going to be I n 2015.
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.”?
I
think that the taxes need to be focused on a main project and made sure that
they are being used in the right way.
Q18-
How many countries would be affected positively y health-related investments
acoording to the Commission
on Macroeconomics and Health (CMH)?
According
to the CMH 83 countries.
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 CMH 360 billion would be gained.
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.
Joseph
Biden and Rick Santorum
The bill is to help the Administration to work with each other on
a better level and major creditor countries and international financial
institutors to amend the heavily indebted poor countries.
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