Shane Jorgensen

Newell-Fonda High School
Newell, Iowa
Teacher: Mrs. Doonan

Do We Have The Funding For The MCA?
By Shane Anthony Jorgensen
12^th grade

Ever since the 1940’s, the United States has been helping other nations out with, as it seems, our unlimited amount of money. After the World Wars they helped rebuild all of the country’s homes and businesses that they blew up. Guess who paid for this? Hardworking Americans paid for this. Where were other countries when the U.S. was being founded? Who helped the U.S then? Helping to rebuild other nations and sending foreign aid to nations throughout the years has costs the U.S. billions and has helped contribute to a national debt of $6,416,218,448,301.86 as of 7:49 am, January 8, 2003. Now [President] Bush wants to spend $5 billion more on foreign aid over the next three years. This is called the Millennium Challenge Account. This account would be very beneficial if the U.S. had the money to do it, but the U.S. is already in too much debt. After much consideration and thought on this subject, there is no way the U.S. can afford to pass the Millennium Challenge Account.

The Millennium Challenge Account is a very good idea. This account is for, as Bush said in his speech, countries that “govern justly, invest in their people, and encourage economic freedom.” he old method of foreign aid was very ineffective and needed to be changed. nstead of handing out a check to countries, the U.S. has specific criteria that has to be met before any country can receive foreign aid. The MCA will not be given to any countries that won’t use it to help out their economy. Through the MCA, countries are able to propose their own system. In this proposal they would include how they are planning on spending the money and their different strategies. This is definitely the best improvement from handing out money because it doesn’t only give developing countries money, it also gives the countries a sense of responsibility. Another thing the MCA will help reduce is terrorism. If a country is living in poverty and its people see a country like the United States doing nothing to help them, they could see the U.S. as the big bad brother that never comes to visit. This bitterness can definitely lead to terrorism.

The U.S. doesn’t have enough money to pass the Millennium Challenge Account. In 1971 the national debt was only $75 million. Now it raises twice that amount every day. Even when inflation is added onto 1971’s national debt, the United State’s current debt is still $5 trillion more. It’s disconcerting when the U.S. is in over $6.4 trillion in debt and still wants to give away money. This amount goes up 1.3 billion every day. The U.S. is already spending over $14 billion in foreign aid, and the MCA will raise this amount by $5 billion over three years. The U.S. wants to do this because they think it is the “right thing to do”, but they should also do the right thing for their own country. Thousands of Americans are out on the streets right now. President Bush has proposed $1.1 billion to aid the homeless, but is that enough considering how much the U.S. spends on foreign countries? Why would the U.S. spend more money on other countries while there are still people in the U.S. in need of help? This makes no sense at all. This doesn’t mean the United States should cut off all funding for foreign aid, but they should definitely learn how to manage their money better.

The U.S. does not have the funding it needs to pass the Millennium Challenge Account. This account is one of the best ideas that has ever been proposed to assist in foreign aid, however. It rewards responsibility and success and only gives out funds to deserving countries. Without this plan, it is going to take these countries longer to get up on their feet, but "Life consists not in holding good cards but in playing those you hold well." If the countries use what they have, they could become the next U.S. Many people say these countries can’t make the best of what they have because they have nothing, but they can make it, just like the U.S. did decades ago. In conclusion, just because the U.S. can borrow money doesn’t mean they can just give it away. The U.S. should not be expected to fund the world because America is not a charity, it’s a country desperately in need of relief of it’s own money problems.

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?

A1 – Three things that do fund 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 regard?

A2 – Bush also mentions that third world companies need trade and requires people who are literate, who are healthy, and prepared and able to work.

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

A3 – Money is sometimes counterproductive when nations refuse to enact sound polices.

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

A4 – The Millennium Challenge Account will expand the fight against AIDS, bring computer instruction to young professionals in developing nations, assist African businesses and their people to sell goods abroad, provide textbooks and training to students in Islamic and African countries, and apply the power of science and technology to increase harvests where hunger is greatest. The donors are expected to give developing foreign companies tools and money to turn their economy around. The recipients of the MCA should use it to better their country in health care, education, and govern with good morals.

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

A5 – Bush expects leaders of the developing nations to rule justly, invest in their people, and encourage economic freedom. Bush also expects leaders of foreign nations to adopt the reforms and policies that make development effective and lasting.

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

A6 – Bush’s challenge to development banks includes connecting good policies with greater aid and when development aid rewards reform and responsibility, it lifts almost four times as many people out of poverty as just writing a check out to a country.

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.

A7 – I believe that we use 1% of our national income in foreign aid, but the U.S. actually spends less than 1% of their GNP on foreign aid.

Q8 – Describe and defend a “Me First” attitude.

A8 – A “Me First” attitude is when a nation makes sure that they’re set and very well off before they help anyone else. This attitude is understandable because many nations have worked hard to get were they are and they want to make sure their people are happy before dealing with any other nations.

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

A9 – A “Mutual Benefit” attitude is when all nations are given the same opportunity to have a successful economy. This attitude is also understandable because it gives every nation a chance at what it deserves, a chance for a successful economy.

Q10 – Describe three unsuccessful foreign aid programs operated by the U.S. government or private American citizens.

A10 - Some experts believe that food aid to India may have been responsible for millions of Indians starving. Other studies have shown that malnutrition in Bangladesh actually rose as food aid to that country increased. Africa, traditionally a food exporter lost its historic ability to feed itself precisely when donor agencies began to smother Africa with project aid.

Q11 – Describe three successful foreign aid programs operated by the U.S. government or private American citizens.

A11 - Many micro loan programs, such as the one run by the Grameen Bank in Bangladesh, are successful. In Ghana, events leading to the need for donor coordination emerged within the context of three major education reforms, the first beginning in 1974, the second in 1987, and the most recent in 1993. In Taiwan and South Korea, building through aid has led to successes in international trade.

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.

A12 – I think that we can both take care of our own people and send foreign aid to other countries because of one reason; we’ve been doing it for years already. Why not continue to send and maybe even raise foreign aid?

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 this is a great change. I don’t see why it hasn’t been done like this in the past. Who would know what a country needs more than that county? I think this will greatly help developing counties.

Q14 – Which of Mr. Rabelet’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 U.S. foreign assistance into two agencies could lead to a lack of coordination and overlapping functions.

A14 – The make-or-break requirement unnecessarily eliminating some countries concerns me the most. If some countries are unjustly eliminated from foreign aid the whole idea of the program is lost. The idea of the program is to give developing countries a chance, not to ignore their needs because they didn’t meet some requirement.

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 agree and disagree with this. We do need weapons of mass assistance, but in the world of today weapons of mass destruction are used to prevent war and are therefore more important. WMD cowers many countries from firing WMDs on the U.S.

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 – The World bank says the United State’s “just and appropriate share” would have to be between $40-$60 billion a year. Our citizens cannot afford this kind of and increase. This would almost quadruple what we are paying now at about $14 Billion. The U.S. can not be excepted to put this amount of funds into foreign aid.

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 think spending our tax dollars on non-government organizations is a good idea. They help he public in many ways by helping to meet community needs.

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

A18 – Health-related investments would affect 83 countries positively.

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 - $360 billion would be saved if an increased investment were made in global AIDS and other health services.

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

A20 -Christopher Smith and John LaFalce were the two congressmen who introduced H.R. 4524. This bill takes a first step at confronting some of the weaknesses of the current debt relief program.

Work Cited
Brillings, Josh. “Life.” Nov. 2, 2002. www.quoteland.com

Sullivan, Brian. “Bush Administration Awards Record $1.1 billion to Provide Housing for the Homeless.” Dec. 8,2002. www.hud.gov/new/release.ctm?content=pr02-151.cfm Back