Rockridge
High School
Taylor Ridge, Illinois
Teacher: Barbara Downey
Millennium
Challenge Account and Foreign Aid
By Matt White
12th Grade
Where am I going to go to college? Where will I go on vacation? How should I spend my money? Where am I going to get food to eat? These are all questions that the average Americans will ask themselves sometime during their lifetime. Americans as a whole do not have to worry about the ”basic” necessities of life. Even though these necessities may seem “basic” to Americans, throughout the world, millions have no idea where their next meal will come from, no idea where they are going to sleep, and no opportunity to become educated. Citizens of these third world nations have one goal in mind and that is to make it on to the next day. And they can make it to the next day, thanks to the foreign aid that other countries provide to give the struggling nations around the world a chance to survive. Foreign aid helps stimulate the country's economy so they can manufacture products to trade and sell with other nations around the globe.
Every year, America as a nation has loaned billions of dollars in foreign aid to help the needy third world countries. On March 14, 2002, President Bush proposed a new plan that would encourage the Inter-American Development Bank to help boost the economy of the poverty-stricken nations of the world. It is known as the Millennium Challenge Account (MCA). The Millennium Challenge Account is the first of many steps to provide a better world for all of us.
The Millennium Challenge Account will help boost the economy of third world nations by giving them grants instead of giving them loans. These grants will give the struggling nations of the world an opportunity to jump-start their economy. If a country meets the requirements, they would receive half of the loan from the World Bank in the form of a grant. Once the country’s economy is stable, it will be able to repay previous debts, thus improving the economic state of that country and the economic state of the world.
The MCA is a step in the right direction for the United States. In 2001, the United States was ranked 22nd on the Official Development Assistance list for the percent of foreign aid given each year from our country’s Gross National Product (GNP) to the third world countries. We gave a measly .11% of our countries GNP to help the struggling countries in the world. This came as a great surprise to me because the U.S. should be the number one nation or at least closer toward the top of the list for the percent of GNP given to foreign aid given each year. We are supposed to be the greatest country in the world. Why not show that we are the best country on this earth and prove to the world that we are truly great on every level.
One simple way to help create more money for foreign aid would be to cut back on some government spending and/or government projects. If the United States government would be more careful on how we spend our money, we would have more money available for foreign aid. It would almost be effortless for the U.S. to spend additional amounts of money on foreign aid without having to raise taxes. The first thing we should check throughout the government is the presence of excess jobs. Eliminating excess and combining a duplication of effort between agencies could provide additional funds. The excess money from these cutbacks or reforms could be applied to foreign aid programs, such as the MCA, to help the third world nations.
The Millennium Challenge Account is one small step in the right direction in the United States’ struggle to increase foreign aid to countries and help advance the world’s economy. The United States must increase its commitment to foreign aid to help the struggling countries of the world. The easiest way for the government to generate more income is for the government to practice a few thrifty spending habits. The U.S. would then be able to further its commitment to foreign aid.
Domestic capital, foreign investment, and 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?
Successful development also 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.
4.
Describe
the Millennium Challenge Account and include in your description what is
anticipated from donors and recipients.
The Millennium Challenge Account was developed by President Bush to increase the U.S.'s foreign aid to developing nations. This funding will provide the citizens in third world nations with the help they need to help boost their nations economy.
The U.S. will lead by example and 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. The number of countries eligible to compete for this funding will also increase over this period.
5.
What
are the three broad standards that President Bush expects the leaders of the
developing nations to adopt?
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?
Bush is challenging banks to provide up to half of the funds to help poor nations in grants instead of loans.
I think it is a good idea to have
grants instead of loans even though the banks will lose money.
It will give some of the poorer nations starting money with out them
having to pay it back. Yet there must be a stopping point so the poor nations will
be forced to work to improve their economy.
7.
What
percentage of our national income (GNP) do you think the United States
government committed to foreign in 2002? First
answer the question then use the Internet to find the answer.
I guessed 5%.
It is 1/10 OF 1%
8.
Describe
and defend a “Me First” attitude?
The
“Me First” attitude is a selfish attitude.
Yet it can still be a good attitude to have, because you will do whatever
it takes to survive.
9.
Describe
and defend a “Mutual Benefit” attitude?
The “Mutual Benefit” attitude is a when two or more countries help each other survive.
10.
Describe three unsuccessful
foreign aid programs operated by the U.S. government or private American
citizens.
The Aid to Israel program was unsuccessful program because they received too much money from the US even though they didn’t need it. The money could have gone to other programs or countries which had a greater need for the money. SAid to Israel was unsuccessful was because it cut millions of dollars from other needy people.
I think this project is unsuccessful because we give the money to Palestinian Authorities so they can spend the money however they want. I feel that it would be more successful if we gave the money straight to the Palestinian programs.
Bridge to Asia Foundation
This program was unsuccessful
because year after year it continued to lose thousands of dollars. They have not been able to make a profit.
They cannot help out a lot, because they have to worry about themselves
first in order to keep their foundation from going under.
That is why this program is unsuccessful.
11.
Describe three successful foreign aid programs operated by the
U.S. government or private American citizens.
This program is a successful program because it has helped children in
three different countries and has made a profit doing it.
Disarm
Education Fund, Inc.
This peace and social justice
program has been around for 26 years and has helped people in Central America
and the Caribbean. The main reason
I feel this program is successful is it has been around for over a quarter
century and has made money helping people.
International
Service Agencies.
This is a successful program because it has helped thousands of people around the world and has been a reliable program to turn to for people in need. It was been able to pay its employees and help out the needy. That’s why it is successful.
12.
Steve
Radelet, Senior Fellow at the Center fro 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.
In
peacetime while our economy is strong, I think we are capable of doing this, but
if we are at war or our economy is down I think we should focus on our own
citizens.
13.
What
do you think about Mr. Radelet’s assertion that “administration is leaning
towards a system in which eligible countries would write proposals 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 this is a very good idea, because we will know what we are giving the money to and what a country will use it for something we find appropriate.
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.
The third one concerns me the most because if the agencies don’t operate smoothly, everything will be lost that they were trying to do.
15.
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 WMA and less on WMD. Please
comment.
I
think the U.S. has to concentrate equally on both of these weapons. We can’t forget about the WMD and leave our country open
for attack, but we also have to help assist the nations of the world.
As our country is currently undergoing a slowing economy along with the potential for additional costs if there is a war on Iraq, I don't believe this would be a sound decision to make at this time. Since our economy is down and the current administration is looking to reduce taxes as a way to stimulate the economy, raising taxes would not be a wise idea.
I
don’t think that we should raise taxes for foreign aid.
If the government needs more funds for foreign aid they can makes
different cuts throughout the government.
83
$360
billion
Mr. Smith and Mr. LaFalce
The
bill was drafted to ensure that the Enhanced Highly Indebt Poor Countries
Initiate achieves the objective of substantially increasing resources available
for human development and poverty reduction in heavily indebted poor countries,
and for other purposes.
Back