Rockridge High School
Taylor Ridge, Illinois
Teacher: Barbara Downey

 

No to Foreign Aid
By Linsy DePooter
12th Grade

 

Although the attacks on the World Trade Center happened over a year ago, they are still affecting the lives of all Americans.  Since these attacks many people have changed their opinion about what is important. Unfortunately, with the results of these attacks, many programs have been put on hold, including foreign aid.  Now is not the time to increase our commitment to foreign aid.  There are too many problems inside our own country that need our attention before we try to help the rest of the world with their problems.    


First of all, there is the matter of the economic recession.  The United States has been suffering because of the way the stock market is plummeting.  There has been talk about how to get the American people to go back to supporting the stock market, to once again invest in it.  But as of yet, I have not seen any results.   The United States needs to try and fix our own economic problems before we grant money to other nations.  The money that we are now proposing to use on foreign aid is needed inside of our country instead of outside of it.  There are many things inside of this country that this money could be used for.  One example is health care for senior citizens.  Many older people in this country are cast aside without common comforts and are not able to take care of themselves because of the poor health care they receive.  Another good way this money could be put to use is by trying to lower the cost of prescription drugs.  The cost for prescription drugs is out of control in this country.  Even with insurance the cost has skyrocketed in recent years.  How are low-income families going to be able to pay for needed drugs?  Tax money should be used to help pay for these drugs.  Whatever amount of money a family spends on prescriptions the government should pay a percentage.  The money could be put to use to try and find ways to lower the cost without lowering the care received.    


There is also the probable war with Iraq to consider.  In the United States’ past, war has been known to jump-start our economy.  Look at WWII, for example.  The entrance of the United States into WWII is what pulled the country out of the Great Depression.  While nothing that drastic has happed yet, our economy is definitely going downhill, so a war would be a good thing in terms of the economy.  In terms of foreign aid, a war would not be such a good idea.  Probably the original contributors to the MCA will turn their attentions instead to the war effort and begin to make their contributions there.  Over time the MCA will get over-looked and will not be able to do what was originally intended.  The MCA will get put on the back burner and forgotten and all the things that had originally been promised will get set back with it until the war is over. While a war with Iraq would be good for the economy, it would not be good for the MCA and foreign aid.


While the MCA may sound like a good idea now, other programs have sounded like good ideas and then come back to haunt the United States.  An example of this would be during the Soviet occupation of Afghanistan in the 1980’s.  Through a covert CIA operation the United States supplied billions of dollars to support insurgent militia forces.  Following the Soviet’s withdrawal in 1989, factions of the militia fell into a civil war and in 1994, the Taliban emerged as the dominant force.  Another prime example is Ethiopia.  In the late 1970’s and 1980’s the military regime of Mengistu received huge quantities of food aid to fight a famine it had helped create.  Yet 90 percent of international aid supplied Mengistu’s followers, while 10 percent reached equally famine-stricken rebels.  The famine thereby strengthened Mengistu’s grip on the country.  While helping other countries sounds like a good idea, it does not always turn out that way.  The MCA just seems like another program that has unforeseen complications that will hurt the United States.


Another concern about the Millennium Challenge Account is that if we keep helping these people, they will never be able to stand on their own, to support themselves.  Yes, the countries are to present their ideas on how they are to use the money but what if these do not work?  While a country could plan to use the money exactly as it says, there are always unforeseen consequences.  A natural disaster, a coup d’etat, or a famine within the country, are just some examples of what could go wrong.  If all of a country’s foreign aid goes towards an unforeseen problem, is that all the foreign aid that country can expect from the MCA and the United States?  Are there provisions about what will happen during situations such as those?  The MCA does not seem to be well thought out.  What other questions can be asked for which there are no answers?


These are just a few of the many concerns about the MCA and foreign aid.  At present, the United States could find better things to do with its money than commit billions of it to foreign aid.  When a nation is on the verge of a war, there are bigger considerations to be made.  We have our own nation to consider and there are definitely things inside of the United States that could be fixed.  Instead of foreign aid our country needs to think of its own citizens and their needs. Foreign aid is not a priority right now.  Our money needs to be put to better use.  

Questions

1.      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 come from domestic capital, from foreign investment, and especially from trade.

2. 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?

One item is the development of security because there can be no development in an atmosphere of chaos and violence.  Another item is the successful development which requires citizens who are literate, who are healthy, and prepared and able to work.

3. When is money sometimes counterproductive, according to President Bush?

When nations refuse to enact sound policies, progress against poverty is nearly impossible.  In these situations, more aid money can actually be counterproductive, because it subsidizes bad policies, delays reform, and crowds out private investment.

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

The United States will increase our development assistance by $5 billion over the next three budget cycles.  The goal is to provide people in developing nations with the tools they need to seize the opportunities of the global economy.  In return for this additional commitment, we expect nations to adopt the reforms and policies that make development effective and lasting. Good government is an essential condition of development.  So the Millennium Challenge Account will reward nations that root out corruption, respect human rights, and adhere to the rule of law.  We will reward nations that invest in better health care, better schools, and broader immunization.  We will reward nations that have more open markets and sustainable budget policies, nations where people can start and operate a small business without running the gauntlets of bureaucracy and bribery.

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

The three broad standards are ruling justly, investing in their people, and encouraging economic freedom.

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

America’s support for the World Bank will increase by almost 20% over the next three years.  We expect the World Bank to insist on reform and results, measured in improvements in people’s lives.  All the development banks should adopt a growth agenda, increasing their support for private sector enterprises and focus more on education, as the Inter-American Development Bank has done.  President Bush challenges the development banks to provide up to half of the funds devoted to poor nations in the form of grants, rather than loans.  Grants instead of loans that may never be repaid.                                                                        

The U.S. does not have unlimited funds to give away in the form of grants. If we are going to give the money in the form of grants instead of loans, then the U.S. needs to be very sure of where that money is going and where it will be spent.  We do not want the money to go toward something like a new palace for a leader. 

7. 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.

My guess was 15%.  The actual answer is .1%.

8. 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 when people argue against helping other nations when we have so many problems within our own country.  Why should we spend billions on feeding other nations’ populations when we have people starving in our own country?

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

A “Mutual Benefit” program is the attitude that if we give foreign aid to other countries eventually they will be able to support themselves and in return, buy our exports.  The Marshall Plan in Europe after WWII is the best example of this.

10. 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 example is the covert funding of the mujahadeen by the CIA during the Soviet occupation of Afghanistan. Following the Soviet’s withdrawal in 1989, factions of the mujahadeen fell into a civil war and in 1994, the Taliban emerged as the dominant force.

Another unsuccessful program was in the late 1970’s and early 1980’s when Ethiopian leader, Mengitsu received huge quantities of food aid to fight a famine his policies had helped create.  Yet 90% of U.S. aid supplied Mengitsu’s followers, while only 10% reached equally famine-stricken rebels.  The famine thereby strengthened Mengitsu’s grip on the country.

The U.S. Drug Enforcement Agency is spending millions to reduce coca production in Colombia.  Yet, since 1995, net coca cultivation in Colombia has more than tripled.                            

11. 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.)

Accion International helps people work their way out of poverty by providing them small loans and training to grow their tiny businesses.

Action Against Hunger USA is an humanitarian relief organization, recognized as a leader in the fight against hunger and malnutrition worldwide.

Africa-America Institute concentrates on the education and training of Africans in a strategically selected range of disciplines and advanced skills and also educates Americans about Africa.

12. 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 think that the plans are all well-intentioned, but they should not be taken too literally because there are always unseen problems for which one does not plan. While I think it is a good idea, it may not always happen.

13. 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.”?

Revolutionary change rarely happens this quickly.  I would foresee bureaucratic problems and disputes between agencies which are tasked to administer this program.

14. 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.

I think what worries me is the separation of U.S. foreign assistance into two agencies because that could lead to a lack of coordination and overlapping functions.  It is great that the U.S. is coming up with these plans but with a separation, there could be the same program twice and the U.S. could end up paying twice for the same support, not  to mention paying two staffs to do the exact same job.  Now, if the separate agencies could coordinate together and let each other know what is going on, this might not be such a concern.

15. 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.

While focusing less on weapons of mass destruction seems like a good idea, in the current situation with hostile countries, this does not seem feasible.  If the U.S. were to stop focusing on WMD, then we would be perceived to have less influence around the world.  If there is some way to concentrate on both WMA and WMD, then I think we should do so.

16. 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 has recently issued a report noting that “if countries improve their policies and institutions, the additional foreign aid required to reach the Millennium Development Goals by 2015 is between $40-60 billion per year.”  Given the size of the U.S. economy and its wealth relative to other countries, the “just and appropriate” U.S. share of this amount would be approximately an additional $10-15 billion annually for these programs.

While we probably can afford it, the question seems to me to be “Do we want to do it?” The answer to that question, in my view, is “No.”  Americans throughout history have objected to tax increases necessary to fund foreign policy objectives.  A tax increase would certainly be needed to fund such an increase to the World Bank.

17. 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 NGOs and grassroots organizations should not be funded by tax dollars because, if they are funded by taxes, they are no longer really NGOs.  The Constitution of the U.S. clearly separates church and state.  This would seem to violate that separation.  

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

83 countries.

19. 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

20. 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 are: Christopher Smith and John LaFalce. The bill’s purpose is to ensure that the Enhanced Highly Indebted Poor Countries Initiative achieves the objective of substantially increasing resources available for human development and poverty reduction in heavily indebted poor countries, and for other purposes.                    Back