Rockridge High School
Taylor Ridge, Illinois
Teacher: Barbara Downey

Foreign aid, Can the United States afford it and should they use the MCA
By Holly Huntley
12^th Grade

Some people are starving, living without homes, and barely making it day to day.  These are not just people in underdeveloped nations but also right here in the United States of America.  The United States has a lot of different concerns to address before they hand out money to others.  Many homes could be improved, the economy could be better, and countless lives could be enhanced.  The United States cannot afford to increase its commitment to foreign aid at this time but if they could, the Millennium Challenge Account (MCA) would not be the plan to use.

Although the United States has to be careful about to whom we give money, the selection process for the MCA needs improvement.  For example, the selection process may create hostility towards the United States.  Some countries could be on the border of qualifying for aid and one mistake could keep them from receiving it.  If those countries are that close and end up not receiving the aid, then they may be angry at the United States.  This could create more enemies than friends.  Indeed, there needs to be a cut off somewhere, but those who are close are not going to be happy.

Making the countries promise to carry out the United States’ wishes gives the United States too much power over the little countries.  The United States is trying to form these countries to be like us.  To earn aid, these countries must promise to:  “govern justly, invest in their people, and encourage economic freedom.” In a sense, the United States is trying to play “God” to these underdeveloped countries.  We want to tell them how to treat their people and how to spend the money, yet they know that we could take the money away at a moment’s notice.  Indeed, the United States needs to keep close tabs on the money that we give out so we will be able to make sure that our money is not being used against us.  However, some countries could pass the selection process and then turn against the United States after receiving the money. 

Another problem would arise when countries that really want to improve their way of life do not get the amount of money that they need.  As more countries qualify for aid, there will be less money for the first recipients.  If those countries are dependent upon that money supply, the sudden cutback down might end up hurting them.  The more countries that are eligible means less money to go around.  If the income qualifications change the third year, several more countries would be included.  Therefore, there would be less money to give out.

If we focus too much on the developing countries, then the focus will drift further away from the American people.  We have homeless, starving people right here that are already being overlooked.  As an American citizen, I do not know why we are helping to develop these other countries when we could help areas right here in the United States.  Most Americans, even those considered the “middle-class”, cannot afford to give more money.  They cannot manage to pay for increased taxes to fund these countries.  As far as the taxes they do pay, that money should be used to benefit them.  Their neighborhoods should be improved and their protection insured.  People should get to choose where their money goes.  If they can afford to give money, they can donate it privately.  For example, Bill Gates has plenty of money, so he started the Bill Gates Foundation to better the lives in the developing countries.  It is great if people want to donate their money like that, but people do not want to be told where they have to donate. 

Even though the poor people in the United States are still richer than some of those living in other countries, now is not the time for the United States to be helping those other people.  The United States is on the brink of war.  We need to hold on to every penny that we have.  Wars are incredibly expensive, and if it comes down to bettering the lives of our soldiers or the lives in other countries, our money should go towards the soldiers.  These men and women are risking their lives to protect our country.  They need food, warm housing, and protection when they are fighting.  September 11, 2001, has caused problems in the United States other than the threat of war.  For example, the United States has had economy problems since then.  Many jobs are in jeopardy, causing more hungry Americans.  We need to focus on rebuilding our country before we try to rebuild another.

The United States can increase foreign aid; however, there is a certain time to do it.  As we know, there is a time for everything:  “a time to tear down and a time to build, a time to weep and a time to laugh, a time to love and a time to hate, a time for war and a time for peace.”  At this time the United States has too much to focus on and cannot afford to increase foreign aid.  At this time we need to improve the MCA or find another plan.  At this time we need to focus on home. 

Questions

Q1- President Bush claimed the most funds for development do not come from international aid.  He mentions three things that do fund development.  What are they?

President Bush says that the three ways to fund development are domestic capital, foreign  investments, 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?

            Successful development in a third world country requires education and health care.  The citizens need to be literate, healthy, and prepared and able to work.

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

Money can be counterproductive when nations refuse to enact sound policies.  It can delay reform and crowd out private investments.

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

            The Millennium Challenge Account will help developing nations.  It will provide money to fight diseases, educate people, and broaden trade.  If we can trade with more countries, we have more markets.  They will be on our side.  The donors are expected to give greater contributions to those that need it.

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

            President Bush wants the leaders of the developing nations to adopt the standards of:  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 is challenging development banks to provide half of the funds to be given to poor nations in the form of grants, rather than loans.  I believe that this is a good idea to stop the debt.  If we just keep giving poor nations loans, then they will be working just to pay us back rather than working to better their lives.

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 guessed that the United States government committed three percent of our national income to foreign aid is 2002.  In reality, the United States government committed only one-tenth of one percent of our national income to foreign aid.

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

            A “Me First” attitude is not wanting to spend money on foreign countries, but instead wanting to keep the money for ourselves.  I have a very “Me First” attitude.  The United States has a lot of money.  I feel that that money should be spent to better the lives of Americans.  The Unites States is supposed to be “the land of opportunities”, but not every American is given those luxuries.

Q9- Describe and defend a “Mutual Benefit” attitude.  (Use your head—you won’t find the answer in the required reading.”

            A “Mutual Benefit” attitude is sharing the money with everyone, not just Americans.  Most people that really need aid do not live in the United States.  With this attitude people feel that since the United States has all of this money, everyone should benefit from it.

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

1)     Shared Hope International focuses on rescuing women and children in crisis.  They strive to provide them with a safe haven, educational opportunities, and encourage them to recognize their individual worth.  Shared Hope International does not meet the CBBB standards for charitable solicitations.  They did not provide the required information on the annual report nor did they give the amount of money actually used by their organization from the donations they received.

2)     Gifts In Kind International (GIKI) is trying to provide voluntary services by encouraging in-kind donations as a supplement to financial support of charitable organizations.  GIKI does not meet the CBBB standards.  GIKI did not include a detailed schedule of expenses by natural classification presenting the natural expenses incurred for each major program and supporting activity.

3)     Shiloh International Ministries tries to relieve suffering, help people in need, and to spread the Gospel of Jesus Christ.  Shiloh does not meet the CBBB standards for charitable solicitations.  They did not send out a current annual report or complete a financial statement.  The money that Shiloh received was spent poorly.  Six percent of Shiloh’s total income was spent on program expenses, when, to be considered successful at least fifty percent is required. 

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

1)     The Bill and Melinda Gates Foundation shares lifesaving advances such as vaccines, new medicines, and the benefits of technology to those who need the most help.  Diseases that have been eliminated in the United States, such as the measles, are still killing and disabling people in developing countries.

2)     America’s Development Foundation (ADF) is a United States nonprofit private voluntary organization that is dedicated to the international development of democracy.  ADF has successfully helped thousands of civic organizations strengthen democratic values, institutions and processes in their countries and develop their communities.
 

3)     Feed The Children is a nonprofit, Christian, charitable organization that provides physical, spiritual, educational, vocational/technical, psychological, economic and medical assistance, and other necessary aid to children and families in need in the United States and internationally.  Feed The Children supplies 1,302,192 meals a day, worldwide.

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 believe that we can offer aid to both our own people and those of less developed countries.  The United States has enough money and is advanced enough to help out multiple countries.  This way we can make sure that the right people are getting the aid that they need.

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 U.S. foreign assistance.”?

I think that it is a good idea to make sure that we do not give money to countries that are not going to use the money to develop their country.  However, it is trying to make everyone like the United States.

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 U.S. foreign assistance into two agencies could lead to a lack of coordination and overlapping functions

The first of Mr. Radelet’s concerns worry me.  Those countries that really need that money might not get it.  If they have received a certain amount of money in the past and then that amount is cut back due to the new number of qualifying countries, it could make those countries take a step backwards. 

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.

Some United Stats foreign policies are making the United States seem like “God” over these other countries.  I understand why that could make people feel negatively about the United States.  If we concentrated more on weapons of mass assistance, then we would seem more like a friend to them.  We would then be trying to help them rather than threatening them.  If our focus is mainly on weapons of mass destruction, the United States will basically be rubbing in the fact that we are bigger and more powerful than the other countries.

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 you views.

The World Bank recommends the contribution of an additional ten to fifteen billion dollars a year by the United States in order to reach the Millennium Development Goals by 2015.  I do not think that our citizens can afford that kind of increase.  We are having economic problems that are causing some Americans to keep every bit of money that they earn.

Q17- What do you think about the request of Faith Action for People Centered Development Policy’s request that the tax dollars be used to fund, not only government-sponsored foreign aid programs, but “that funds also go to NGOs and grassroots organizations.”?

I do not like the Faith Action for People Centered Development Policy’s idea that tax dollars be used to fund NGOs and grassroots organizations.  Americans work hard to earn money that should be used to keep us happy.  Everyone has different beliefs.  Why would someone want their hard-earned money to go towards something that they have never heard about or will never get to see the effect of?  People should be able to choose to help foreign countries or not.  Some are struggling just to support themselves.

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

According to the Commission on Macroeconomics and Health, 83 countries would be affected positively by 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?

According to the CMH, $360 billion 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.

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.

The two congressmen who introduced H.R. 4524 were Representative Chris Smith (R-NJ) and Representative John LaFalce (D-PA).  H.R. 4524 is an attempt to provide debt relief to countries suffering health crises.  All HIPC- eligible countries will get their annual dept payments reduced during 2003 through 2005.
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