Newell-Fonda
High School
Newell, Iowa
Teacher: Connie Doonan
Foreign
Aid: Can the United States Give More?
By
Aaron Hagen
12th Grade
Every year hunger kills twelve million children worldwide. At least 700 million people do not have enough to eat. Many more countries lack money. Half of the world lives on just two dollars a day. The United States needs to increase their foreign aid responsibilities in other countries. Americans do not pay very much in aid to other countries, and something needs to be done about it. The Millennium Challenge Account is a good plan that has many good points to it. Although the nation faces a large debt, the United States needs to continue to increase their foreign aid and take the responsibility that they must take as the dominant country in the world, and the Millennium Challenge Account is the way to do it.
Many are opposed to increasing foreign aid for many reasons. One of the main arguments is the national debt. The debt right now is over six trillion dollars and is growing a billion a day. Every American citizen would have to pay over 22,000 dollars to cover the debt. People argue that by covering the five billion dollar increase to support the new plan, a tax increase would have to happen. A tax increase would upset the everyday working citizens and force them to pay even more taxes. People who oppose an increase in foreign aid say that some countries will always hate us no matter what we do. They say that countries that have a true hatred for the U.S. will not change their mind with a few dollars.
The United States does not give a big enough portion to foreign aid. In 1999, the United States gave just one-tenth of a percent of their gross national product to foreign aid. This number has gotten smaller by the decade. In 1970 it was three-tenths, and in 1990 it was two-tenths. The United Nations is asking rich countries to give seven-tenths of their gross national product to foreign aid. The national debt will not get smaller by decreasing foreign aid. As a matter of fact, the national debt has gone up by three trillion dollars since 1987, even with the cutback in foreign aid. A tax increase will more than likely be needed, but a steep one may not be the best choice. If the government can get all the non-governmental organizations to donate the money that they normally give to the new Millennium Challenge Account, a large tax increase would not be needed. U.S. aid is only about sixty cents per week for the average American taxpayer. The taxpayer can afford an increase by just a few cents per week. If a country hates the U.S., then maybe the U.S. should introduce democracy to them and help them get a sound economy. If [a foreign] government is not strong, it leaves room for terrorists to move in and take over. If those countries understand the American way of living, opposing countries might not hate them as much and would make the world a better place. United States’ aid has made it possible for thirty-six countries to successfully make the transition to a democratic government.
The best way for America to increase foreign aid is with the Millennium Challenge account. The Millennium Challenge Account (MCA) provides a very good way of not only giving money, but making the countries responsible for that money. Isaac Shapiro said of the MCA, “If approved by Congress, once this proposal would be fully phased-in it would represent an important advancement in foreign economic aid funding.” The fund would increase the percentage of the gross national product to foreign aid to fourteen one-hundredths of a percent, which would be a dramatic increase in money spent. The MCA makes the countries accountable for the money. The money will only go to the countries that can prove to have good government. That means that the countries will have to rule out corruption and uphold human rights. The country must take care of their people by investing the money in education and health care, along with immunization. The country must also have sound economic policies that allow for more open markets and better budget planning. Countries that have incomes below 1,435 dollars per capita will be eligible the first year, with the number increasing every year. This allows the United States to help the poorest countries first, with the scale moving up. The American dollars do help. The money spent overseas saves lives and helps countries make a better life for their people. Investments by the U.S. made it possible to feed an extra billion people in the world in the past twenty years.
The United States needs to increase their commitment to foreign aid through the newly introduced Millennium Challenge Account. The national debt may be large, but the country can afford to increase [its] giving. The MCA is the best way to give that money out. Instead of just handing out money, the government is making the foreign countries accountable for their actions and making them use the money in the right way. U.S. aid has helped out many people, and makes other countries our allies through giving of money and improving their government. Although America might never feed all the starving people, or help all the people in poverty, the new Millennium Challenge Account brings the United States closer to obtaining that goal.
Works Cited
“Millennium Challenge Account Update.” 3 June 2002. 8 January 2003.
<http://www.usaid.gov/press/releases/2002/fs_mca.html>.
Shapiro, Isaac and Nancy
Birdsall. “How Does the
Proposed Level Of Foreign
Economic Aid Under the Bush Budget Compare With Historical Levels?” 20 Mar. 2002. 8 January 2003. <http://www.cbpp.org/3-14-02foreignaid.htm>.
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?
The three things he mentions are domestic capital, foreign investment and especially 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?
The third world countries also need education and health care needs met.
Q3 – When is money sometimes counterproductive, according to President Bush?
Money can be counterproductive when nations refuse to enact sound policies, because the money 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.
The Millennium Challenge Account is a source of financial aid to help developing nations. It is a way to reward nations that help themselves become better and less corrupt nations while improving the conditions of the people that live within their borders. The recipients are expected to have better laws, have better health care and schools, have broader immunization and have more open markets and sustainable budget policies.
Q5 – What are the three broad standards that President Bush expects the leaders of the developing nations to adopt?
The countries must rule justly, invest in their people, and encourage economic freedom.
Q6 – Describe Presidents 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, and not loans. I do not favor this. I think that the countries should have to pay back some of the money. Not necessarily all of the money, but at least some of it, in some form or another, whether it be in monetary form or in goods.
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 think that the United States committed about five percent to foreign aid. The real percent is just one tenth of a 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 one in which someone takes care of themselves first. They are always looking out for themselves, and never look to help someone else. If they do help someone else out, it is only after they are very comfortable. It is a good way to take care of themselves and to make sure they always have enough of everything.
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 is when two people help each other out. They are able to help each other get things they want. One person can get one thing, while the other can get someone else. It is a good way to not only take care of themselves, but to also help out another person as well.
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 foreign aid program is giving money to Egypt and Israel,
which accounts for about one third of U.S. aid.
They both mostly use the money for their military and don’t pass the
money on to the people.
The
second unsuccessful program is the Great
Society and War on Poverty programs of the 1960s. It actually led to an increase
of the percentage of the poor.
The
third program is when the U.S. took over the territory of Micronesia
from Japan. The U.S. aid lowered
their exports by half and took a toll on their farming economy.
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 America's Fund for Afghan Children. It has raised ten million in just over a year. This money purchased many supplies and built new playground equipment in Afghanistan.
The second successful program is emergency food assistance, which totals $138 million and agricultural rehabilitation, which is just over thirty-six million.
The third program is the United States has delivered over 500,000 metric tons of food to Africa since the beginning of 2002. The food has a value of over $266 million, which makes the U.S. the largest supplier.
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
think the United States can do both. They
can help their own people and lend a helping hand.
As the supreme country in the world, it is the U.S.’s responsibility to
try and help out as many people as possible.
With increased support, I believe that they can do both.
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
agree that the United States needs to be cautious with their money.
It doesn’t grow on trees, and I think that they need to only give money
to countries that have a plan and aren’t going to just waste it.
With a plan the countries will hopefully have a better idea of what they
want to use the money for, and if the money is used for that specific purpose,
it will greatly increase the effectiveness of the United States’ foreign aid.
Q14-
Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why?
They
all concern me. If more countries
are eligible and the poorer countries get less money, then the program might not
be as effective. The funds would
have to try and stretch more and every country would get less money, which is
not good. The second statement
worries me because if countries are eliminated, they should be eliminated for a
reason. If countries are eliminated
unnecessarily, then the funds’ success could fail and the countries that
really need the money might go without. The
last statement also concerns me because if the splitting of the assistance into
two agencies causes lack of coordination then the fund might fail again.
If the fund is going to be successful and help the countries that need
help, then the government must work well within itself to ensure the
effectiveness of the plan.
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.
Any time that a country can help out instead of hurt is a positive thing. I think that if the U.S. can help a lot of people then they should go for it. If they do concentrate on weapons of mass destruction and they use them, then the government would help rebuild anyway. So why not take that money and just devote it to helping instead of try to do harm.
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.
An additional ten to fifteen billion dollars annually was what was proposed. I think that the citizens can afford what they want to afford. If they put this high on their priority list, then yes, they can afford it. If the citizens put this on the bottom of the list and just give what is left over, then no, the citizens would have no chance to afford it. My guess is no. The American people probably won’t be able to come up with that much more money then they already do. Even if they could come up with the money, I think they would like to see that money put to use in a “better way.” In their minds a better way could be something that helps them out personally, and not helping other countries, where most people couldn’t even image living like they do.
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 if the government is going to collect taxes from the American people, then the money should go to the government of the other country. If that government wants to give that money elsewhere, then that is their decision. I think that if the people are trusting the U.S. government with the money they U.S. government shouldn’t trust the money with anyone but the other government.
Q18- How many countries would be affected positively by health-related investments according to the Commission on Macroeconomics and Health (CMH)?
Eighty- three countries would be affected.
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?
About 360 billion dollars would be gained annually.
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.
Chris Smith and John LaFalce, both representatives, introduced the bill. The bill was called the debt relief enhancement act of 2002. The main point of this bill is to have the United States work with creditors to try and help countries that are heavily in debt to reduce their debt. Back