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



The MCA Project
 By Blake Rieman
 

Over the years the United States has adopted the role of being the “Big Brother” to many third world countries.  The U.S. provides an astronomical number of handouts to underdeveloped countries.  An astounding [one/]tenth [of one] percent of the gross national product is used for foreign aid.  Often when the U.S. gives hand outs to struggling countries, it creates a shoddier economic status than before the aid.  And even though the economy of the United States is sluggish, the push for a major increase in funding is still questionable.  Because of the national debt and the current state of unemployment, the United States cannot afford an increase in taxes to finance foreign aid when domestic aid is needed. 

The Millennium Challenge Account was created to increase the amount of money used for foreign aid.  The MCA is different from other foreign aid programs because the MCA has guidelines and milestones countries must pass to continue receiving aid.  Although the nation is in major debt, the Millennium Challenge Account is not concerned with the potential increase in taxes to finance the program.  The debt is not expected to hurt the country.  If other dominant countries assist the United States in forming a world banking system to aid underdeveloped countries, it will in turn create a stronger world economy.  With fewer third world countries, the world can insure stronger global security.  The idea to increase weapons of mass assistance and to lower the concentration on weapons of mass destructions would provide more money for funding by cutting money spent on the military. 

The United States is suffering from a debt that is growing and compounding by millions of dollars every day.  With an economy in recession and the highest unemployment percentage in years, now is not a time to raise taxes to generate funding for the aid of other countries.  The U.S. can’t afford to squander tax dollars on third world countries that are unwilling to cooperate in developing a stable economy.  If taxes were to be raised for any reason, they should be raised to repay our national debt which is now over six and a half [tr]illion dollars.  The first idea behind government taxing was so the government could provide key services and national protection to every citizen.  With the United States current problem of unemployment and the rising poverty rate, the nation needs domestic aid.  When does the government cross the line of taxing for the strength and well being of the nation and taxing for charity?  Aid for the well being of other countries shouldn’t come through U.S. tax dollars. 

The United States is investing the most money into the MCA world bank idea.  It is projected that ten to fifteen billion dollars per year will come from the U.S. alone, and the dollar amounts will only increase.   The idea is to create a stronger world economy.  But if this program requires other countries to provide more money than they can handle, like the United States, will this plan help or hurt the global economy?  If the United States can’t afford to donate their percentage of funding then how do we expect other countries to fulfill their percentage?  With the eventual over taxing of countries, too large of debt it will weaken the major countries economy.  Although the strength of a the third world countries would eventually rise, the global economy would still decrease. 

The United States cannot afford to reduce the military to invest more in foreign aid.  At a time where terrorism is at its peak and the U.S. is its biggest target, the United States Government must protect its citizens.  If the United States cuts military funding, they would open the door to the growing threat of terrorism.  The reason a government taxes its people is so the government can provide adequate services and national security. A reduction in military funding would be redirecting national tax money that was collected for the sole purpose of national security to be used for the benefit of non-tax payers in other countries; that would be unconstitutional and unjust. 

With the major dilemmas of compounding debt and rising unemployment, the United States must refuse to increase taxes and focus on domestic issues.   More money should be directed back to the United States and more weight should be placed on other countries’ shoulders.  An increase in foreign aid and a decrease in military funding would jeopardize the countries’ safety.  With the new growing threat of terrorism on the United States the government can afford to reduce military spending.  In the current condition of the nation, the United States cannot afford to raise taxes for foreign aid.

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?

President Bush mentioned 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 this regard?

The two items are education and health.

Q3- When is money sometimes counterproductive, according to President Bush?
When nations do not enact sound policies because it subsidizes bad policies, crowds out private investments, and delays reform.

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

The Millennium Challenge Account is a project focused on national aid to underdeveloped countries.  The goal for donors to provide people in third world nations the tools they need to seize the opportunities of the global economy.  In return nations will adopt the reforms and policies that make development effective and lasting.

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

They must rule justly, invest in the people and encourage economic freedom.

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

President Bush intends to develop a world banking system to be used to improve third world countries.  I think by pouring money into these third world counties we are in turn pouring money into terrorism.  Since the only educated people are either already in control of the failing country or they are other terrorists.  Or if this somehow does work and the country adopts a higher standard of living and develops a solid economy, I don’t think their gratitude toward the U.S. will be what it should and eventually, because of our way of life, we will have another enemy.

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 the United States commits roughly fifteen percent of our gross national product to foreign aid.  The U.S. actually puts forth ten percent of the GNP.

Q8- Describe and defend a “Me First” attitude. (Use your head ¾ you won’t find the answer in the required reading.)

The “Me First” attitude is one in which you would support the idea of spending tax money to protect, serve, and provide financial aid to U.S. citizens.  The “Me First” attitude is what our government was set up to do.  The idea behind almost every person in the United States paying taxes is to provide national protection and to be used for the betterment of the country and people.

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 idea where we use the tax dollars on foreign and domestic aid.  The “Mutual Benifit” attitude would be the perfect solution.  To maintain a high standard of living in the United States and to create the same standard in other third world countries would make the world a better place and virtually eliminate the hunger and sickness problems in the world.

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 U.S. Trust Territory of Micronesia is one example of an unsuccessful foreign aid program.  This program was instated after World War II when Micronesia broke away from Japan.  The U.S. government sent food and clothing supplies to this country to help the people and in turn ran local food and clothing stores out of business.  The United States left the country in worse condition than when we started.  Another example of an unsuccessful foreign aid program was African Aid Project.  The plan diminished the economy and ruined Africa’s historic ways of feeding itself.  The last example is one from Bangladesh.  The U.S. government sent a large number of handouts to the country and in turn left what business the country did have a mess.  And unless the United States continues to keep giving the country food and clothing the people cannot survive.

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.)

Costa Rica is one example of a successful foreign aid program.  The program created a stable economy through a democratic government implemented by the U.S..  Another example of a successful foreign aid program is Botswana.  Through a democratic government with many parties in control the country has established a solid and stable economy.  Zambia government has also been restored thanks to financial aid from the U.S..  The economy is stable for the first time since they declared independence.

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.

Even if it is possible to tend the needs of most U.S. citizens and some underdeveloped countries it’s not what the tax payers are paying taxes for.  Taxpayers pay for national security, government services, and national aid.  With the amount of money something like this would consume we could either be successful at one or unsuccessful at 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.”?

If there is a correct way to provide foreign aid I think this is the right approach to take.  In the past the U.S. simply squandered money on free handouts that only hurt the receiving countries economy and created a higher demand for more aid.  However, I think this method is much more wise.

Q14- Which of Mr. Radelet’s three concerns regarding the MCA concerns you and why?

Mr. Radelet’s last concern is what concerns me.  “The separation of U.S. foreign assistance into two agencies could lead to a lack of coordination and overlapping functions”.  The problem with two agency’s is the overlapping functions, which would cause the U.S. and other countries to spend a lot more money then is necessary.

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 disagree with the opinion.  The United States cannot afford to reduce there military, especially during a time where terrorism is an ongoing threat to the country.  If the U.S. would reduce the military, they would be redirecting tax money intended for the safety of the citizens to the care and well being of other countries.  That would be unconstitutional and unjust.

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 that the U.S. provides around ten to fifteen billion dollars annually to the MCA.  I don’t think the citizens or the country can afford that kind of increase.  With a national debt of over six and a half [tr]illion dollars if we were to increase taxes for anything it should be that.

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 money collected by the government should be used by the government.  I do not support taxation for charity.

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

The CMH believes that eighty-three countries will be positively affected by the health-related investments.

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?

The CMH has projected that three hundred sixty dollars would be gained annually if investment goals are reached.

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.

Representatives Chris Smith (R-NJ) and John LaFalce (D-NJ) introduced a bill to combat HIV Malaria and Tuberculosis in foreign countries.
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