Sky View Academy
Plugersville, Texas

 

Reform or Bust!
By Christina Hansen
8^th grade Single Entry

           

In a speech on March 14, 2002 , President Bush said, “Yet in many nations, in many regions, poverty is broad and seemingly inescapable, leaving a dark shadow -- a dark shadow -- across a world that is increasingly illuminated by opportunity. Half the world's people still live on less than $2 a day. For billions, especially in Africa and the Islamic world, poverty is spreading, and per capita income is falling.” For many people in the United States , this information is startling. Can they imagine themselves living on two dollars a day? Of course they can’t, and since the people who are living on two dollars a day live so far away most people don’t worry about it. They take their comfort and wealth for granted. However, the United States gives billions of dollars to foreign aid, help given to poorer countries, every year. Some people may ask why there are still so many poor people in the world then. The reason is that so far most of the money contributed to foreign aid has been wasted. The wealthier countries have been giving money to the poorer countries, but the money has not been accompanied by reform. If there is no effort by the needy countries to reform, reform won’t happen! That is why the new Millennium Challenge Account (MCA) that the Bush Administration has announced is a very big step in the right direction because it requires more support from the rich countries and more effort, reform from the poor countries. 

To repeat, the MCA is a big step in the right direction. Over the next three budget years the United States will be increasing its commitment to foreign aid by 15 billion dollars. That sounds well and good to some people until they realize that it will have to come out of taxes. American citizens are going to be screaming, “How are we supposed to give 15 billion more dollars to foreign aid! I certainly don’t have 15 billion dollars!” They may not have 15 billion dollars, but do they have an additional $50 per person in their family per year? That is 4 dollars a month. If everyone in the United States gave up one movie once a month. We would have an additional 15 billion dollars to contribute to foreign aid.

Now, the poor countries have to make an effort too. Only the countries that meet certain standards would be given this extra money. These standards include the government governing justly, the government investing in its people, and the government promoting economic freedom. This means that the government is making and enforcing just laws, improving healthcare and education, and is controlling its budget.

Now, is there proof that programs run by the government haven’t worked because there was no reform. Yes there is. In 1992 President Bush approved sending several billion dollars to Russia . Most of the money we sent didn’t go to help the people of Russia . Most of it went to pay back international bankers that made risky loans to Russia knowing that the American taxpayers would pay them back if the Russians didn’t.

However, many non-governmental charities have had a lot of success. For example, Project Mercy, a non profit organization, has helped improve the lives of many Africans. In Yetebon , Ethiopia they’ve provided clean water for 130 households, made an all-weather road from Yetebon to Butajira, and constructed many other roads. They’ve also made a school in Yetebon. 700 students in Kindergarten to 9^th grade currently attend the school. Another example is the Children’s Hunger Relief Fund. The fund was started by a group of volunteer missionaries and provides meals to thousands of children, has increased literacy among children, gives immunizations to 10,000 children every year, and helps give physical and emotional support to children who have seen war or who have lost a family member to AIDS.

In conclusion, many people are desperate for help. The government has tried for years to help them, but the money hasn’t helped. Why hasn’t it helped, because there was no reform efforts accompanying the money. The money didn’t go to helping the people. However, the Millennium Challenge Account requires efforts from the needy countries to reform. It also increases the wealthy countries commitment to giving foreign aid. This is simply following what many non-governmental organizations have done for years. For the future, the government needs to be careful. After the countries start making reform and we give them money we can’t just walk off. They could easily slip back into their old ways. The government needs to stay with the countries to the end. They need to make sure reform keeps happening. Many would like poverty to be erased off the earth. Well, for that to happen, reform or bust!

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?

 They 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 this regard?

 They are security and citizens who are able to work.

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

When money is not accompanied by legal and economic reform, it’s counterproductive.

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

The Millennium Challenge Account is a foreign aid program recently announced by the Bush administration that expects both contribution and responsibility from both the rich countries and the poor. As developing countries make reforms by rooting out corruption, respecting human rights, having better healthcare, better schools, and broader immunizations, the wealthy countries will increase their funding to that country.

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

They should be ruling justly, investing in their people, and encouraging economic freedom.

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

President Bush’s challenge was for the banks to insist on reform and results, to adopt a growth agenda, to support private sector enterprises, and to focus more on education. This is good because this way the banks are helping poor people help themselves instead of them becoming dependant on the banks.

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 government committed 2% of our GNP to foreign aid in 2002.

Actual answer: .1%

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 you worry about yourself before anyone else. For example, you make sure you have a house and food before you worry about helping other people have them and you make sure you will continue to be financially ok before you help other people. This is good because if you don’t have money or food yourself, how are you supposed to be able to help other people?

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 a group of people all work towards improving each others lives. This is good  because everyone receives help sooner an everyone is equal.

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.)

One unsuccessful foreign aid program was run by the U.S. government in Haiti. At first the program was working because there was a heavy foreign advisory on Haiti and a respite in political factionalism, but as the advisor was taken off the factionalism began again. The government became paralyzed and unable to hold a free election.

Another unsuccessful program was run by the government. In 1992 President Bush approved sending several billion dollars to Russia. Most of the money sent went to pay back international bankers for loans they had made to Russia. The economy stayed in shambles.

Finally, a for-profit organization, GreaterGood.com, shut down when the markets slumped, causing advertisers on the website to reduce their budgets and change their contracts.

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.)

Project Mercy is a non-profit organization working to improve the lives of Africans. One of the projects they’ve been carrying out is in Yetebon, Ethiopia. So far, they have provided clean water to 130 households, constructed an all-weather road from Yetebon to Butajira, and constructed many other roads.  They’ve also established a school in Yetebon that 700 students in Kindergarten through 9^th grade attend.

Children’s Hunger Relief Fund was started by a group of volunteer missionaries and provides meals to thousands of children, has increased literacy among children, gives immunizations to 10,000 children a year, and helps with the physical and emotional needs of children who have seen war or have had a family member die from AIDS.

Christian Children’s Fund assists more than 2.5 million children in more than 30 countries by providing children access to clean water, nutritious food, medical care, and education.

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 we can offer aid to both because not everyone in the US needs aid and the U.S. does have quite a bit of money.

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 it is a good thing that we’re expecting  the needy countries to reform and come up with a plan on how they’re going to do it so that they’ll be helping themselves instead of becoming dependant on 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.
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.

His first concern worries me most because, according to the laws of math, poorer countries need more money than less poor countries. I think we should take into account how much money a country is already receiving and the countries needs before we give it more money.

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.

First of all, the U.S. is focusing on “mass assistance.” President Bush just formed a new organization, the Millennium Challenge Account, which will dramatically improve foreign aid. Second of all, if terrorists were able to get hold of a Weapon of Mass Destruction, there would be no foreign aid  for the United States to give.

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 an additional 10-15 billion dollars annually. Of course we can afford that. There’s about 292 million people in the United States. 10 billion divided by 292 million is about $30 extra per person per year. That’s less than $3.00 per person per month! If everyone simply skipped a movie once a month we’d have the additional 10 billion dollars.

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 it’s a good request because the NGOs and grass root organizations are very well established and are able to help the people better because  they’re not having to try and get organized. However, this doesn’t mean that the government should start controlling these organizations.

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

73 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?

$360 billion dollars

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.

Congressman Smith and Congressman LaFalce

This bill would decrease the amount of debt service paid annually by needy countries. It would do this by not allowing the lenders to expect more money than 5%, or 10% depending on the country’s health, of the needy country’s budget annually.

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