Rockridge High School
Taylor Ridge, Illinois
Teacher: Barbara Downey

Foreign Aid Through Non-government Organizations
By Sarah Layer
12^th Grade

In the year 2002, the United States committed one tenth of one percent of its national income to foreign aid.  When put into a percent, this seems like a very small number.  Actually, this one tenth of one percent translates to billions of dollars.  Some believe that the United States government has an obligation to increase its foreign aid commitment; however, in addition to the money that the government assigns to foreign aid, the United States has thousands of private organizations that focus solely on helping underdeveloped countries.  At this point in time, the United States government cannot afford to augment the amount of foreign assistance it provides.  Non-government organizations can meet the need for an increase and therefore, the Millennium Challenge Account is not a step in the right direction.

First, at this time the United States cannot afford to increase its commitment to foreign aid.  Since our economy is currently weak, the United States is not in the position to be loaning even more tax dollars to underdeveloped countries.  These taxes, which are paid by American citizens, should be used to help less fortunate Americans.  Although the government provides welfare, Medicaid, and Medicare to those in need, many Americans remain homeless and jobless.  As long as there are still people to help, it is not fair to take away funds from the programs they need to survive in order to increase foreign assistance.  Granted, the poorest Americans can perhaps be compared to the richest citizens in some other countries, but the United States cannot be expected to make poverty disappear.  The United States may soon be at war with Iraq.  A war demands supplies, which requires time and money.  As we devote more time and money to helping nations around the world, we will be taking away from our chances of winning a war.  Funds cannot be taken away from our defenses when it is known that Iraq has weapons of mass destruction.  Although we too have these arms, Iraq is more willing to use them.  The government needs to focus on our country’s economic health and improve it before taking on more, which could jeopardize our financial and national security.

On the other hand, if the United States does not step up and take the leadership to help those in need, then who will?  The United States is the richest country in the world, and many of its citizens can afford luxuries that those in other countries have never even heard of.  The American people should feel an obligation to help other countries as much as they can.  However, many Americans have a “Me First” attitude. If everyone had a “Mutual Benefit” attitude and would donate regularly to help others, there would not need to be a boost in government funds for foreign aid.  That increase would come from the pockets of the many wealthy American citizens.  With proper motivation, those who are more fortunate should feel an obligation to make regular contributions to private organizations.  There are so many non-government organizations that many people have never heard of.  It is time to make these groups well known and to encourage the American citizens to lend a helping hand by donating.   

The Millennium Challenge Account does have a few unique aspects.  This program is set up to give underdeveloped countries more independence throughout the time they receive assistance.  Each country must have a plan for which they will use the money.  This would give countries in need a chance to participate in rebuilding their own economy instead of just accepting money.  But how effective can this system be?  Although the Millennium Challenge Account is a welcome idea, it could cause friction with those countries that apply for assistance and are turned down by the United States.  The United States is presently viewed as a dictator and controller by some countries.  If we let countries in need apply for foreign aid, we will eventually have to begin rejecting some.  With the Millennium Challenge Account, the line between acceptance and rejection will be a very thin one.  Since we are currently considering war with Iraq and have declared war globally on terrorism, is this really the best time to begin making new enemies?  Although the countries that will be applying for assistance are not capable of winning a full-fledged war against the most powerful country in the world by themselves, alliances can be made and wars can be won if sufficient force is brought to bear against us.

As we stand today, the United States government cannot afford to increase its commitment to foreign aid, and the Millennium Challenge Account is not a step in the right direction.  If it were necessary for the United States to increase the amount of foreign assistance to underdeveloped nations, then it would be beneficial for the government to try to increase public awareness of such countries in need.  I propose that the government increase the amount spent on educating United States’ citizens about underdeveloped countries and encouraging them to help in the fight against poverty.  This could be done through television commercials or through public lectures at schools, businesses, and other community spaces.  Only when the United States’ economy is stable will our country be able to help other nations improve their financial status.       

Questions and Answers

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

A1- The three things that fund development are domestic capital, foreign investment, and, especially, 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?

A2- Successful Development in a third world country requires citizens who are literate and healthy.  These citizens must also be prepared and able to work.

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

A3- In situations where nations refuse to enact sound policies, progress against poverty is nearly impossible and more aid money is counterproductive.

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

A4- The Millennium Challenge Account was proposed by President Bush on March 14, 2002.  The President pledged that the United States will increase its core development assistance by fifty percent over the next three years, resulting in an annual increase of five billion dollars by the year 2006.  Under this account, the United States will provide people in developing nations the tools they need to raise their economy.  In return for our help, we expect the nations to adopt reforms and policies that make development effective and lasting.  Eligible countries must govern justly, invest in their people, and promote economic freedom.  The United States will then provide them with financial support.

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

A5- President Bush states that countries that rule justly, invest in their people, and encourage economic freedom will receive more aid from the United States.

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

A-6 President Bush has challenged development banks to provide up to half of the funds devoted to poor nations in grants rather than loans.  I support this challenge, because it is a faster way of helping underdeveloped nations get out of debt.  If all foreign aid is handed out as loans, it seems to me that we are just helping these countries increase their debt.  If the main goal of increasing foreign aid is to help other countries improve economically, I think grants are a much more effective way of reaching this goal.  Underdeveloped nations cannot afford to be in debt to us.  If we are going to help and expect to really make a difference, we should offer partial grants in place of loans.

Q7-What percentage of our national income (GNP) do you think the United States government committed to foreign aid in 2002?  First answer the question and then use the Internet to find the answer.

A7- I think the United States government committed approximately ten percent to foreign aid in 2002.  After searching on the Internet, I found that the United actually committed only one-tenth of one percent in the year 2002.

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

A8- A “Me First” attitude is one in which a person (or country) puts themselves first.  Instead of looking for solutions that would benefit the entire group or country, those with a “Me First” attitude search for ways they themselves may profit.  This attitude may be good in that a person always knows that they are taken care of.  It is a good way to reach your goals and make progress.

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

A9- A “Mutual Benefit” attitude is one in which a person (or country) looks for ways that a large number of people may benefit.  People with this attitude are never selfish.  The group’s well-being comes before personal well-being.  In this way, good outcomes are shared among more people.  

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 form the same class will not be accepted.)   

A10-   1. A Child’s Dream is a private organization that supports educational programs concerning drug abuse, health and fitness.  This program presents festival events for children and the general public.

2. Children’s Wish Foundation International is dedicated to bringing joy and hope to seriously ill children around the world through the granting of their wishes.  However, in 2002 CWFI was sued for false reporting.  This organization reported that they donated toys and goods in the amount of $415,188 to twenty-one Florida organizations.  In reality, the CWFI donated only $84,923.  In addition, nine of the twenty-one listed recipients reported receiving no donations from the CWFI. 

3. Smile Train seeks to provide long-term solutions to the problem of cleft lip and cleft palate in children across the world through training local medical staff, funding surgeries for children in need, and supporting research. In 2001, free cleft surgery and related treatment was provided for more than 25,000 children around the world.  Although this organization has an income of over 60 million dollars in the year 2001, it spent only approximately six million on actual research and activities.

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 form the same class will not be accepted.)   

A11-  1. Children International provides the opportunity for impoverished children to grow into healthy, educated and self-reliant adults.  Through its child sponsorship program, CI provides financial and material aid to poverty-stricken children and their families. Sponsors' contributions support program benefits and services to help children living in one of nine countries throughout the world. More than 250,000 children and their families benefited from educational assistance, medical care, nutritional rehabilitation, family assistance activities and material aid in 2001.

      2. Habitat for Humanity International assists international affiliates, located in 64 countries, predominantly in the developing world, in the construction of affordable housing. During 2001, Habitat built or renovated 18,460 houses worldwide. Habitat's Global Village and International Partner programs place trained volunteers with international affiliates to help launch building projects across the world. Through newsletters and videos, Habitat informs the public about housing and homelessness issues and educates the public about Habitat's work in the community.

3. MAP International supplies donated pharmaceuticals and medical supplies to hospitals, clinics and relief projects in the developing world. MAP reports that it distributed medical supplies to over 106 countries in the fiscal year 2000; 32% went to Africa and 28% to Latin America. Disease prevention and eradication are major components of MAP's activities as it works to prevent Guinea worm infection, HIV/AIDS, pneumonia, measles, and other diseases. In particular, MAP reports that it trained over 200 people from West Africa and Latin America to enable them to provide education and prevention information to their communities.

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- Obviously we can do both, because we currently are offering aid to foreign countries and American citizens.  However, the amount of aid the government offers to the people of the United States should be more than the amount we offer to underdeveloped nations.  As long as there are still homeless and jobless Americans, we need to continue to offer programs to help them.  Private organizations are a great way to offer aid to countries in 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 the responsibility is a revolutionary change in U. S. foreign assistance.”?

A13- Allowing eligible countries to write business proposals would be a great way to let those countries participate in the aid process. Instead of the United States government telling underdeveloped nations how to spend their money, they can tell us what their strategy is.  In this way, we are not trying to control other countries and force them to use funds the way we see fit.

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.

A14-  The make or break requirement concerns me because of the conflict that could arise with countries that are eliminated.  When countries are unnecessarily eliminated, they may hold some hostility towards the United States.  If enough countries are angered by the MCA’s methods of choosing and rejecting countries, large problems could arise.  Attacks on America or other countries could occur. 

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- It is a good idea to concentrate on weapons of mass assistance rather than mass destruction, and this would certainly improve the world’s opinion of U.S. foreign policy.  However, it is necessary to concentrate on weapons of mass destruction at this time.  Weapons of mass assistance cannot win a war.  Which is more important, improving the nation’s image as it appears to the world or making sure our nation is safe and 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.

A16- According to the World Bank, the United States’ just and appropriate share would be an approximately ten to fifteen billion dollars annually.  The citizens of the United States cannot afford that kind of increase right now.  Our economy is down and many are unemployed and homeless.  This is an unreasonable amount for the World Bank to expect from American citizens.

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 NGO’s and grassroots organizations.”?

A17- If this would mean an increase in tax dollars, I do not agree with this request.  Many American citizens cannot afford an increase in tax dollars.  The government and U.S. tax dollars should not fund non-government organizations.

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

A18-These health-related investments would positively affect 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?

A19- Three hundred sixty billion dollars would be gained annually between 2015-2020.

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

A20- The Debt Relief Enhancement Act of 2002 (H.R. 4524) was introduced by congressmen Smith and Lafalce and addresses the problems of the heavily indebted poor countries.  This bill would nearly double current debt relief by cutting an additional $1 Billion in both bilateral and multilateral debt service annually.  The World Bank and IMF would cover their own costs of this proposal (as with current HIPC program).  A U.S. contribution of $43 million/year would go to help write off regional multilateral debt.
                                                                    Back