Rockridge
High School
Taylor Ridge, Illinois
Teacher: Barb Downey
Negative
Aspects of the Millennium Challenge Account
By Ashley Whitney
12th grade
The United States is the
wealthiest nation in the world. Other
countries are starving while the majority of Americans have a warm meal on the
table when they come home. The
United States gives billions of dollars each year to help less fortunate
countries that are in need of help. Yet
the problem of starvation, as well as various other financial related
difficulties, seems to be getting worse every day in these countries.
President Bush’s response to this situation is the formation of the
Millennium Challenge Account (MCA). The
MCA is a proposed foreign aid program that over the next three budget cycles
would increase money given to poor countries up to $5 billion dollars.
He states that it is “devoted to projects in nations that govern
justly, invest in their people, and encourage economic freedom.”
This money would be given to lower income countries that meet the
requirements or guidelines designated by President Bush.
Bush believes these guidelines would eliminate countries that do not
really need assistance or that are corrupt.
Although the United States should increase its commitment to foreign aid,
the MCA is a program that will not work.
Even though the United States
is a prosperous nation, our economy is presently suffering.
Although some say that our government’s money should be spent on the
American people, I believe that the U.S. can afford to help both the people of
our country, as well as other countries. If
we do help invest in other countries’ economies (through increased foreign
aid), we will be increasing their ability to trade with us.
This increased trade could actually benefit our own economy as well, a
mutual benefit. This increased
trade could then serve as an example to other countries.
Other countries might follow the United States’ lead and increase their
commitment to foreign aid. The
wealth might then be shared more evenly amongst the nations of the world.
Although the goal of the MCA is
what we should strive for, the proposition is desperately lacking in
workability. If we help a country
by providing it with money for several years, the country might become dependent
on us for support. A country might
end up where it started if we only agree to help for a certain number of years.
Having a country dependent on the United States would not boost the
economy of either country. The main
goal of the MCA is to give money to countries which will invest it and
eventually pay off debts. Some
countries may think that paying off their outstanding debts would help them more
than investing the money. These
countries would continue looking towards the United States for further support.
On the other hand, what happens
to the countries that we do not agree to help?
They may become bitter with the United States.
If the large sum of money that the United States gives away is divided
among several nations, the nations who do not meet the standards would not
receive any money through the MCA. This
might cause them to have a grudge against our government or country.
Countries like this may have some kind of trick that we would have never
expected. When looking at the MCA,
we have to be willing to face the reality that countries that were turned down
might retaliate with violence.
Another concern is making sure
that the money and assistance is going to where it needs to go.
The government of the country could lie about where all of the aid is
going. A problem like this would
not help the general welfare of the country but instead might cause the
country’s government to become corrupt. People
of that country would never see the money they were supposed to be getting.
This would result in the country staying in the same or worse economic
position it was in before the money was given to them.
The only way the MCA program
could work, if used in the future, is if the administrators develop a follow-up
program that would monitor where all of the money was going and evaluate whether
the money was being used successfully. A
program like this would be effective in making sure that the government is using
the money in the way that President Bush wants.
A lot of foreign aid can and does come from nongovernmental
organizations. Churches, individuals, and businesses donate money and
support to poor countries across the world.
Increasing this kind of private foreign aid would keep the money out of
the hands of the government, and there would be less opportunity for the corrupt
governments to take the money.
We, as a country, can afford to
increase our foreign aid given to various countries, but the Millennium
Challenge Account is simply not the way to go.
Countries could either become dependent on us for support or become
bitter with us if we do not agree to help them.
We, as a nation, need to decide whether or not that is a risk we are
willing to take. We cannot be sure
if the money is going where it needs to go, because there is not a follow-up
plan to monitor the progress of the money.
Overall, President Bush’s heart was in the right place when designing
the MCA, but the plan simply will not work.
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?
The domestic capital, foreign
investment, and, especially, trade fund the 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?
The foundation of development
is security. It also requires a
good government, which includes citizens who are literate, who are healthy, and
prepared and able to do work.
Q3- When is money sometimes
counterproductive, according to President Bush?
Progress against poverty is
almost impossible when nations do not enact sound policies.
When this happens, money is sometimes counterproductive, because it
subsidizes bad policies, delays reform, and crowds out private investment.
Q4- Describe the Millennium
Challenge Account and include in your description what is anticipated from
donors and recipients.
The Millennium Challenge
Account is a program to help smaller and poorer countries.
The U.S. will increase our development assistance up to $5 billion over
the next three budget cycles. The
goal is to help the people of the country by having them invest their money.
Q5- What are the three broad
standards that President Bush expects the leaders of the developing nations to
adopt?
President Bush expects the
countries to rule justly, invest in their people, and encourage economic
freedom.
Q6- Describe President Bush’s
challenge to development banks and explain why or why not you favor it.
President Bush challenged
development banks to give out grants that would be half of the funds devoted to
the poor nations. I favor this
idea, rather than giving money out in loans.
If they give out loans, the countries are going to have more debts that
they cannot repay. Grants do not
have to be paid back and would help the countries to invest their money.
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.
I thought the United States
gives out 15% of our GNP to foreign aid.
The United States gives .1% of
our GNP 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
when a country, such as the United States, thinks of themselves first, instead
of less fortunate nations. The United States wants everything to be how
they want it to be. They will do anything, including stepping on small
countries, to get what they want.
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 when countries compromise to find an agreement that will to be to the benefit
of all participating countries. A mutual benefit will help all of the
countries, instead of certain ones over others.
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
from the same class will not be accepted.)
Society of Missionaries in
Africa- The purpose of this program is “to remain faithful to their call to
share the life and mission of Jesus, and to give witness to the gospel, in
Africa and among the Africans wherever they may be.” This programs assists in funding projects to alleviate
poverty and deprivation in Africa and to raise awareness of the plight of the
African people through education, community prayers, and publications.
They did not provide an annual report.
They did not include a summary of program service activities and
accomplishments during the past year, a roster of its board of directors,
deductibility of contributions, nor financial position.
Charities’ fund raising cost should not exceed 35% of related
contributions, but this programs percent of fund raising costs was 39%.
United States Association for
the United Nations High Commissioner for Refugees- This program was established
to raise awareness among people of the UNHCR.
It informs member and donors of current refugee crisis, administrative
matters within UNHCR, and outlines ways to help.
The program only used nine percent of their fund raising money on related
programs. Most organizations use at
lease fifty percent. It also only
spent money on one program and did not account for where the rest of the money
was going.
Wheelchair Foundation- The
purpose of this foundations is “to deliver a wheelchair to every man, woman,
and child in the world who needs one.” They
have delivered over 34,404 wheelchairs in over eighty countries.
The organization did not submit a report as to where all of their funds
were going. They also did not
report for any fund raising expenses. The
program had another program, the Kenneth E. Behring Foundation, which supplied
over $490,000 to help them ship the wheelchairs to the other countries.
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 from the same
class will not be accepted.)
International Cooperation and
Development Program- This is a program that that helps in “humanitarian aid to
international refugees or countries suffering from national disasters.”
The ICDF humanitarian assistance projects include emergency aid,
resettlement assistance, and recovery and reconstruction operations.
Additionally, the ICDF provides post-disaster evaluation and planning
services, allowing countries to rebuild and improve their essential medical,
sanitation, and nutrition and public safety services.
American Schools and Hospitals
Abroad- The ASHA provides foreign nationals the benefits of American ideas and
practices in education and medicine and promotes civil societies.
The ASHA has assisted about 194 institutions in over 60 countries, and
facilitated the development and sustainment of superior libraries, schools, and
medical centers.
Compassion International- This
program provides funding for food, clothing, health monitoring, formal
educations, and spiritual training for approximately 350,000 children in
twenty-two countries. Their stated
purpose is “In response to the Great Commission, Compassion International
exists as an advocate for children, to release them from their spiritual,
economic, social, and physical poverty and enable them to become responsible and
fulfilled Christian adults.”
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 think that we can afford to
offer aid to both. We only provide .1% of our natinal income to foreign
aid. Most of the money is spent on trivial things that are of no
importance to the welfare of the country. If there is still 99.9% of our
GNP to do things with, I think that we can afford to help people in our country
and in other countries.
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.”?
I think that this statement is
true. Many programs have failed or used the assistance we give them in a
negative way. The goal of the program is not accomplished.
If countries are lucky enough to get the money or assistance, they should
make the most out of it. Giving the countries guidelines will help them
use the money effectively.
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 US foreign assistance into two agencies could lead to a lack
of coordination and overlapping functions.
To me, the first objection
concerns me the most. The MCA is designed to help poor nations get their
feet back on the ground. The money is used to help them expand their
economy. By giving the lower income countries a chance at the money, this
means that the poorest countries will not get the assistance that they need or
deserve. Other programs can help the countries will low income.
The MCA is made especially for the lowest nations in the world.
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 to U.S. to concentrate
more on weapons of mass assistance (WMA) and less on weapons of mass destruction
(WMD). Please comment.
I think that we should
concentrate more on weapons of mass assistance. By helping people more, there will not be as much of a need
to fight or destroy nations. Although,
we still need to have weapons for our defense.
Without them, we would helpless and vulnerable.
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.
For the United States, the
“just and appropriate share” would be an additional $10-$15 billion
annually. I think that we can
handle this kind of increase. We,
as Americans, often spend a lot of money on things that we do not need.
I think that if most Americans would each pay several dollars more on
their taxes that would go towards this large sum of money.
I do not think that it would be too difficult for the United States to
raise this amount of money.
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 grassroots organizations.”?
Although I think NGOs and
grassroots organizations are a wonderful form of foreign aid, I do not think
that we should use our tax dollars to fund them. Not all Americans will want their money going towards these
types of programs. If we want to
increase this kind of foreign aid, we, as citizens, should do it instead of the
government.
Q18- How many countries would
be affected positively by health-related investments according to the Commission
on Macroeconomics and Health (CMH)?
83 countries will be affected
in a positive way by health-related investments.
Q19- According to the CMH, how
much would be gained annually between 2015-2020 due to save lives and increased
economic growth, if an increased investment were made in global AIDS and other
health services?
Three hundred and sixty billion
dollars would be gained annually.
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.
Christopher Smith and John
LaFalce are the two congressmen who introduced the bill.
This bill is called the Debt Relief Enhancement Act.
It mandates action by linking debt relief to criteria that addresses
human need and responds to the stunning tragedy that is the AIDS pandemic.
This bill would nearly double current debt relief by cutting an
additional $1 billion in debt service. This
would allow poor countries to address important issues such as education,
HIV/AIDS, and poverty.
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