Rockridge
High School
Taylor Ridge, Illinois
Teacher: Barbara Downey
Success
Through Leadership
By: Sarah Schafman
12th Grade
“Transformational change in a
poor country cannot be imposed from the outside, not by the UN, not by the
Banks, and not by donor governments. There must be a national leadership and
local support for transformational change to remove the impediments to
microeconomic reform, to clean up corruption in the political system, and to
make public management more accountable and transparent,” explained Andrew S.
Natsios, a USAID administrator. Only after a foreign country develops productive
leaders and adequate support, can they head towards successful economic reform.
The Millennium Challenge Account can be the tool that provides an opportunity
for foreign countries to become financially self-sufficient. However, as a
result of our current economic position, the United States simply cannot afford
to increase its foreign aid budget.
The stimulation of the United
States economy is vital before we can begin a program such as the Millennium
Challenge Account. With our slumping economy, we are in a poor position for
economic leadership. If the United States is judging the economic stability of
foreign countries, then we need to be setting a good example of a solid
financial position. Actions are stronger than words. Countries will see the
United States’ poor economic state and hear our encouragement to establish
their sound economy. How could a country respect our suggestions towards forming
an effective plan when they see our economy as a poor example of success?
The United States cannot afford
the Millennium Challenge Account because the rise of our economy has come to a
sudden halt. Over the past year, the stock market has been falling, local and
state taxes have been increasing, and businesses around the country have been
laying off employees. Citizens are short of money, and they cannot afford a tax
increase to support the Millennium Challenge Account, nor can they afford this
money being taken from essential places in the United States budget.
In order for the United States
to address the public perception of its economy, it needs to realize the
economic fear September 11th produced. The nation has become financially
insecure, and many businesses have been failing. September 11th caused a chain
reaction of job losses, and this left many American people with little money. As
an example, one can examine the trouble airlines are having after 9/11. The
image of airplanes crashing into the World Trade Center left many Americans with
a fear of flying. Because of this fear, many airlines suffered from lack of
customers. Due to the lack of customers, the airlines needed fewer flights,
which led to fewer jobs at the airport. The lack of flights, led to the need for
fewer planes, which next affected the employees who build the planes. This
chain-reaction has spun out of control, and many people fear the future of our
economy as thousands become unemployed.
Instead of asking for money
from the American people, our government needs to stimulate the economy by
encouraging spending within our country. The government needs to put the idea of
foreign aid aside and hold our economy at a more stable level. With this extra
money put aside, more money will be circulating in the government, and the
government can afford to lower taxes. This will allow citizens to hold on to a
larger amount of money, and with more money available, that money will be spent.
This spending and investing will allow the stock markets to rise and push the
growth of our economy.
If and when the United States
is in a solid economic position, our government should consider the Millennium
Challenge Account. With the USAID and the Millennium Challenge Account working
together, they can each effectively help countries remove themselves from debt.
Private donations can often help a country get additional food, clothes, and
clean drinking water, but these things do not change the country’s position of
debt with the United States. By replacing some of their loans with grants, the
Millennium Challenge Account could free the country from additional payments
that are not feasible. This strategy can get countries out of bottomless debt
and lead them to financial freedom.
As countries sit down to
produce their financial plan, leaders with a vision will emerge. Leaders will
start to transform ideas into a successful plan, and once their plan is formed,
they will begin to eliminate the fear of change. The news of a secure financial
plan will spread throughout the country and gain support and encouragement from
its hurting citizens. By letting the country work together, the people can pull
themselves out of debt. The country will not just be getting a handout, but an
honest step towards the development of their country’s industrial and economic
potential.
South Korea is an example of a
country uniting to remove themselves from financial trouble. In the 1950’s,
South Korea was struggling with many financial issues. They made goals towards
economic reform and took advantage of their foreign aid. Today, the World Bank
considers South Korea to be an “upper-middle-income” country, and they have
stopped receiving financial assistance from the United States. Many countries
can use South Korea’s story as an example of hope for a better future. If
countries focus on their financial plan, and adhere to it, they too can learn to
become self-sufficient.
Before
the Millennium Challenge Account can be put into action, the United States must
stabilize its economy. Then, this program can assist countries to help leaders
emerge and become self-sufficient. If foreign countries see the United States
operating a solid program that is helping their people make and decide goals for
themselves, their respect for our economic leadership will grow. Hopefully, the
Millennium Challenge Account will encourage other countries to step up and fight
for economic reform. The United States will no longer be playing the role of
“Uncle Money Bags” but will be supporting foreign countries’ desire to
improve their nation.
Bibliography
“Natsios Discusses Millennium
Challenge Account.” On-line. Internet. 24 Jan. 2003.
Available WWW: http://cryptome.org/usaid102202.html
“The Role of Foreign Aid in
Development.” On-line. Internet. 24 Jan. 2003.
Available WWW: http://www.cbo.gov
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 that
domestic capital, foreign investment, and trade fund development.
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?
President Bush stated that
success requires security and citizens who are literate, healthy, and who are
prepared and able to work.
Q3 - When is money sometimes counterproductive, according to President Bush?
Money cannot be effective when
nations refuse to enact sound policies.
Q4 - Describe the Millennium Challenge Account and include in your description what is anticipated from donors and recipients.
The Millennium Challenge
Account will increase its core development assistance with five billion dollars
annually by the year 2006. It will also provide countries struggling financially
with money and assistance to make a plan for success. The United States will
encourage them to be leaders and make good decisions. We will expect nations to
adopt reforms and policies that make developments effective and lasting, to root
out corruption. Additionally, the United States anticipates greater
contributions from developed nations.
Q5 - What are three broad standards that President Bush expects the leaders of the developing nations to adopt?
The three standards are 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.
Over the next three years, the
challenge is to increase America’s support for the World Bank by twenty
percent. President Bush wants to insist reform and results, adopt growth agenda,
increase our support for private enterprises, and focus more closely on
education. He also wants to trade some of the United State’s loans with grants
and challenge the Unites States with the idea of dropping debt.
President Bush’s challenge is
favorable because it suggests that we give the World Bank money and help foreign
countries solve their problems. It is a positive vision to focus on education so
that the countries can learn to produce success for themselves. It is also
reasonable to drop debt, because most countries in debt are buried so far, they
see no hope of financial freedom.
Q7 - 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
thinking of your objectives before the objectives of others. Sometimes this is
necessary, because you should not over commit yourself to something that you
cannot apply enough effort to accomplish. Also, you need to make sure your
well-being is satisfactory before you attempt to help someone else. You need to
be an example to others if you expect others to let you assist them.
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 defending and achieving your goals while helping others to achieve their
goals. This is a necessary way of living. You do not want to be selfish, but you
need to help others. Both people get a reward and a more effective way of living
from assisting each other.
Q10 - Describe three unsuccessful foreign aid programs operated by the US government or private American citizens. (Do not use 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 in the same class will not be accepted.)
The first unsuccessful program
is Barnabas International. Barnabas International serves the staff of other
missionary agencies, and they travel extensively to mission locations worldwide.
Barnabas International provides counseling ministries for ministry families,
retreats, Bible conferences, seminars, and marriage enrichment. This program was
unsuccessful, because they did not have a clear objective and vision set out for
the year ahead. After the year of 2001, Baranabas International had a loss of
$31,933.
Peacemakers International was
financially unsuccessful. Peacemakers International is dedicated to witnessing
to the lost world with Jesus Christ through community, Biblical instruction, and
counseling. Their program’s accomplishments were listed as Bible verses, and
their objectives sounded as personal guidelines for their staff. This program
did good things, but was not accurately organized for financial success.
Peacemakers International had lost $10,405 after the year 2002.
Hope Haven Support Foundation
has overspent their budget. After the year 2001, Hope Haven was in debt
$501,040. Their vision is to unleash potential through work and life skills, so
that they may enjoy a productive life in their community. Hope Haven holds many
residential programs, counseling, and delivers free wheel chairs to disabled
people around the world.
Q11 - Describe three successful
foreign aid programs operated by the US government or private American citizens.
(Do not use 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 in the same class will not be
accepted.)
Awana Clubs International is a
very successful program with clear objectives. For more than fifty years they
have been training boys and girls to live for Jesus
through attendance at weekly clubs and activities.
Awana Clubs has partnerships with more than 10,000 churches in more than
100 countries. These clubs have shared Christ with more than one million
children. They have also managed themselves well financially, and came out on
top at the end of the year.
The Habitat for Humanity in
Centralia has been another successful program by building houses for many
homeless worldwide. They make adequate and affordable shelter with people from
different denominations willing to work together. They built many houses last
year and ended the year with financial success.
Christianity Today
International was founded by Billy Graham in 1956. This program provides 2.5
million readers encouragement and Bible-based wisdom from CTI’s eleven
magazines. Also, they have a website which 500,000 people visit monthly to be
informed and inspired. This program has accomplished a lot in the past years and
has a clear vision for the years ahead. Christianity Today has also done a great
job in raising money to expand their vision as they have $1,063,425 in their
account.
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.
The United States can offer aid
to both our own country and other countries by using the “Mutual Benefit’
attitude discussed earlier. First, we must make sure our economy is stable so
that we set a good example, and then, we can offer aid to other countries.
However, taking care of others should not just include money but include
assistance to solve the problems leading to lack 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.”?
The
creation of financial plans by individual countries is an improvement to foreign
aid. Allowing countries the opportunity to create a vision before they receive
their money is also very beneficial. This will allow leaders from their country
organize and form their ideas before the overwhelming amount of money is in
their hands. It is additionally effective as a tool for evaluation, because the
United States can view their plan and decide if the country is putting their
money towards a useful cause.
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 many unnecessarily eliminate some countries
3. the separation of US
foreign assistance into two agencies could lead to a lack of coordination and
overlapping functions
Mr. Radelet’s third concern
of the separation of U.S. foreign assistance worries me the most, because chaos
could be produced in both programs. The United States needs a plan as to how
these two programs can function together. If they do not work out guidelines
between each other, then they could end up giving one country too much aid or no
aid to another country. These two programs need to work together by staying away
from disagreements. If too many conflicts arise, both plans could terminate.
Q15 - There is evidence of an increase in negative world opinion towards US foreign policy, not necessarily the American people. To counter this negative perception of the US some people want the US to concentrate more on weapons of mass assistance (WMA) and less on weapons of mass destruction (WMD). Please comment.
The negative opinion toward the
United States is based on the way we conduct our foreign policy, and
concentrating less on WMD will not change their view. Most countries dislike the
United States, because we often act like we are policing the world. However, we
cannot afford to give assistance without our own country in mind. As an example,
we cannot give handouts from the United States budget. Instead, we have to use
programs such as the Millennium Challenge Account to make sure the money is put
to its best use. The United States needs to keep weapons around for our safety.
Some people say we are the most hated country in the world. Because of opinions
like these, the United States needs to keep its protection.
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 amount of money to reach
the goals is 10 to 15 billion annually. Citizens cannot afford an increase in
taxes during our slumping economy. We need to keep money within our country so
that the citizens can spend and invest to stimulate the economy.
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 grass root organizations.”
This request is not reasonable,
because citizens’ tax dollars represent public money. Many private
organizations represent people of different religions. The public may not agree
with a certain religion, so it is not right to use public money on private
funds. Additionally, this would cause a stir, because it would be impossible to
keep equal amounts of money to every religion.
Q18 - How many countries would be affected positively y health-related investments according to the Commission on Macroeconomics and Health (CMH)?
A total of 83 countries would
be positively affected.
Q19 - According to the CMH, how much would be gained annually between 2015-2020 due to saved lives and increased economic growth, if an investment were made in global AIDS and other health services?
Each year $360 billion would be
gained.
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.
Representative Chris Smith and
Representative John LaFalce introduced H.R. 4524. This bill will reduce deep
debt relief for all HIPC countries by reducing their annual debt payments during
2003 through 2005 to no more than five or ten percent of government revenues.
The cost of this bill for the fiscal year 2003 is estimated to be less than $50
million.
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