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

 

Millennium Challenge Development Project
By: Amanda J. Hornor
12th grade

 

President Bush’s speech on the increase of foreign aid and the Millennium Challenge Account has left people wondering if Bush will be able to initiate this plan. It is a fifty percent increase on foreign assistance and a new take on foreign development.  USAID says the MCA is, “a genuinely new look at foreign assistance. It is bold in vision, generous in spirit, and very pragmatic in approach.” Some people argue that this is too big of a challenge for America’s foreign aid to handle. But supporters feel this new plan for foreign development will benefit the world by reducing poverty, and encouraging economic growth to poor countries. The U.S. should be able to afford increase of foreign aid for the Millennium Challenge Account.

Some people think the U.S. can’t afford increase on foreign aid and should stay out of other countries’ problems. Since September eleventh, the economy has gone down and hasn’t been good. Arguers say since the economy is bad, it’ll be hard to afford money for America’s problems and foreign countries problems.  Some people have the opinion that America should have a “Me First” attitude and not worry about others. Giving other countries aid when they need help with development makes poor countries dependent on the U.S, and the Millennium Challenge might make those countries locked in a cycle of dependence on the U.S. People argue that countries do not always like America’s help, and American’s just make it worse. For example, when relief organizations help countries in the Middle East, it sometimes angers the countries’ governments.  Another reason people are against the MCA is that they think taxpayers will be spending all their money on it, and they can’t afford that.

However, the U.S should be able to afford an increase in foreign aid because America is one of the most powerful countries in the world. Since the U.S. is one of the most powerful countries in the world, it makes it wealthy too. If any country can afford such an increase, it would be the United States. The economy isn’t good, but it’s not like the Great Depression.  Giving other countries assistance in economic growth might also boost our economy. The countries that will be involved in the Millennium Challenge Account will benefit with better marketing and businesses, which will start a trading cycle.The U.S could then trade resources with these countries boosting our economy. As for the “Me First” attitude, the U.S isn’t a nation that stands by and lets poverty ruin millions of lives. The U.S. has always had a helping hand when countries are in trouble.  Besides, countries can’t do everything by themselves; they need help from other countries once in a while. Taxpayers won’t be spending all their money on better foreign aid either. American citizens would never be able to raise enough money with just taxes. Five billion dollars is needed to help fund the Millennium Challenge Account. Organizations, foundations, universities, businesses, and individuals will help donate money for the MCA.

Opponents claim that the Millennium Challenge Account funds might not reach the poorest countries, and if they do, countries might not do anything in return.  Since the MCA only counts for countries that pass eligibility, many of the poor countries won’t meet requirements. With the MCA, there won’t be as many development funds for poor countries. Countries with smaller incomes might not be able to compete with larger-income countries for the funds.  Arguers also think if poor countries do get some funding from the MCA, they won’t be able to give anything in return. Poor countries might not be able to reach the development goals set for them since their income is low.

Supporters for the Millennium Challenge Account believe the account is for the poorest countries, and there is something they can do in return for the funds.  In 2002, twenty of the poorest countries were eligible for funds from the MCA. The MCA doesn’t take the place of development organizations and funds; rather, the MCA helps development organizations with funds. That way, poor countries can get more funds. Countries do compete for funds, but compete by how much they achieve and their income. The funds will be set up in tiers.  The first tier is for the top performing governments in poor countries to support civil society.  About forty percent will be available. The second tier is for a larger number of weaker performing governments in poor countries.  About fifty percent will be given here.  Eventually countries will move up making room for more countries not in the MCA. For countries to be eligible for the MCA, they first must show they can have a sound government, economy, and society. Then they must write proposals and set development goals for them to reach.  So the countries will be able to meet their own goals.

The U.S should be able to afford the increase on foreign aid and the Millennium Challenge Account.  Poor countries will be able to compete equally for funds and meet their own development goals.  America is a country willing to help world development in a new form of foreign assistance.  The Millennium Challenge Account won’t fully rely on taxpayer’s money.  The organization, Interaction says that, “aid alone, no matter how well designed, will not solve the problem of global poverty.  Real progress requires a combination of efforts in both donor and recipient countries.”  The Millennium Challenge Account gives countries, recipient and donor, something that makes the world more developed, and one step further to freeing the world of poverty.

Work Cited

1.    Schieck, Fredrick.  “Millennium Challenge Account.”

Center For Global Development.  2002: USAID. 1/6/03 http://www.usaid.gov/press/spe_test/speeches/2002/sp020712.html.

2.    McClymont, Mary.  “Millennium Challenge Account.”

Interaction Library.  2002:Interaction. 1/6/03

http:www.interaction.org/library/millennium.html

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?

          Security, trade, and financing.

Q2- President Bush reminded his audience that successful development in a third world country requires more that funds.  What two items did he mention in this regard?

          Education and Healthcare needs.

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

          When nations refuse to enact sound policies.

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

          The U.S. will provide more development assistance to foreign countries.  The Millennium Challenge Account is set up for this development and President Bush declares the U.S will lead as an example to others by having development up fifty percent and raising five billion dollars for the account.  The U.S. will set certain standards for countries and the countries will follow the standards in order to be qualified for funding.

Q5- What are the three broad standards that President Bush expects the leaders of the developing nations to adopt?

           Bush expects leaders to adopt governing justly, economic freedom, and investing in freedom.

Q6- Describe President Bush’s challenge to development banks and explains why or why not you favor it.

          Bush’s challenge to development banks is for them to adopt a new compact on growth agendas.  Bush wants the banks to provide half of the funds to poor nations be given in grants.  That’s a good idea to have money lent out in grants.  Then the nations don’t have to repay them and can use the money for whatever it needs to be used for.

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 then use the Internet to find the answer.

          I am guessing maybe ten percent.  Answer: .11% or about ten million dollars.

Q8- Describe and defend the “Me First” attitude.

          That a country is always thinking for the better of themselves.  They always think what is best for them first.  They don’t have to worry about others.

Q9- Describe and defend a “Mutual Benefit” attitude.

          A relationship that benefits both sides. A country giving something and getting something in return.  This attitude helps everyone rather than just one’s self.

Q10- Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens.(Conduct research on the Internet.)

The Foreign Assistance Act was an assistance program that was to help countries in times of crisis but was inefficient because it needed economic reform.

           Development Loan Fund was a program to assist countries by lending them money.  It didn’t cover for a long-range development program.

          The Peace, Prosperity, and Democracy Act would have replaced the FAA but the PPD was unsuccessful because it would have merged all the foreign assistance departments together using one fund for all of them.

Q11- Describe three successful foreign aid programs operated by the U.S. government or private American citizens. (Conduct research on the Internet.)

          Warm Blankets is an organization that helps mainly orphans find safe homes by placing them in houses where widows care them.

          Action Against Hunger is an organization that has helped many third world communities by providing clean water, sanitation systems, and food programs.

          Stop Hunger Now is one of the largest humanitarian organizations.  It provides food and relief aid to people living in crisis areas.

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

          I don’t know if it will work the way Bush wants to.  The U.S. is one of the wealthiest countries in the world but the U.S is also deeply in debt.  Five billion dollars is a lot to spend and it will probably depend on taxes and donations from the citizens.  Taxes are already a lot and we should worry about the problems inside the U.S. before other countries problems.  We could still have the Millennium Account but not put so much money in.  Other countries can help by putting money in.

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 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”?

          It sounds that the change is for the better.  The countries that want eligibility know what they can achieve better than the U.S.

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.

I think Mr. Radelet’s statement about more countries becoming eligible and will eventually leave the poorest countries with fewer MCA funds.  I’m kind of concerned that the countries that are the poorest won’t get much money, which they need, the most.  The poorest countries implementing the right strategies deserve the funds the most because they’re fulfilling their part of the bargain and expect the U.S. to do their part.

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.

That, I think is a good idea.  Other countries will receive aid instead of insecurity.  Might make other countries feel more secure.

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.  It might be hard on American citizens.  If any country can we can.  But that kind of increase annually is unheard of.  That’s too much money.  Other wealthy countries should have to give that much too if we have to.  Our economy isn’t doing so well either, so that will affect how much money we can raise for the MCA.

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?

          If the funds were also given to NGOs and grass root organizations, taxes wouldn’t fully be used to help the government but help little organizations.  If the organizations would help world development it would be good.  Then maybe the U.S. wouldn’t have to put so much money into the MCA.

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

          Eighty-three 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?

          Three hundred sixty billion dollars would be gained.

Q20- Use the Internet for your research and name two congressman who introduced H.R. 4524.  Give a 2-line synopsis of that bill.

          Representatives Christopher Smith and John LaFalce. It is about increasing funding for debt relief and funds for fighting incurable diseases like AID’s. If this Act passes, it will also be able to increase funding for healthcare crises in third world countries with about three point three billion dollars over two years. 

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