Rockridge
High School
Taylor Ridge. Illinois
Teacher: Barbara Downey
Millennium
Challenge Account and Foreign Aid
By Tara Stegmiller
12th Grade
The
United States government sends billions of dollars each year in aid to foreign
countries, while we have people living in our own country in poverty.
Consequently, one might be tempted to think, “Forget about the foreign
countries and take care of our own people first.” However, the United States
must closely examine all the options before making its final decision. I have
weighed the positive against the negative and have concluded that it is in the
United States’ best interest to increase its commitment to foreign aid.
If
other countries are dependent upon the United States for financial aid, they
will be very cautious not to upset the U.S. government, especially with the
trials of terrorism and the vulnerability of homeland security. This will help
motivate foreign countries to avoid war and lead to world peace.
For example, Israel is a country full of political and religious unrest;
it depends upon financial aid and military assistance from the United States to
keep its enemies in check. If war
broke out in Israel, it would have a negative impact on the U.S. as well as many
countries in the Middle East. For
this reason alone, the United States should be willing to give foreign aid.
The
United States is a country rich in natural resources, but the U.S. is unable to
provide enough resources for the entire population of the country. The U.S.
needs to be on a friendly basis with other countries in order encourage trade
with them. This is a mutual benefit. If
the U.S. is on good terms with a foreign country and buys its products, this
country will turn around and purchase products from the U.S., thus boosting the
economy of both countries. The U.S. can and should afford to increase its
commitment to foreign aid; to accomplish this, the Millennium Challenge Account
(MCA) is a good place to start.
Too
many times, when aid is given to a foreign country through governmental
agencies, the majority of that money is lost in the administration of that
agency. In other words, the people
at the top receive most the money and very little filters down to the people on
the bottom, who need it the most. The
MCA could have this same problem because it is going to be administrated by a
government committee. However,
groundwork for the MCA is being laid to avoid this pitfall.
The personnel of the administration board will come from both
governmental and nongovernmental agencies and serve limited terms. The mixture of committee members and the fact that they have
limited terms should keep the focus on the people who need help rather than be
self-serving to the administration board.
In
addition, the MCA is a worthwhile project because it is based on the concept of
aiding foreign countries by teaching them to help themselves rather than just
giving a handout. For example, the
Heifer Project International donates a pregnant animal to a family in a foreign
country. It is given with the
understanding that when the young are born, one of the calves will be donated to
someone else. Donating one animal
can teach a family to be responsible for their own needs as well as their
neighbors’ needs. If cared for
properly the animal can support the family for many years to come.
Aid given by the MCA is a mixture of loans and grants.
Some of the foreign countries are so destitute that they could never hope
to repay the debt if the aid were all a loan.
By having up to half of the aid be designated as a grant, the poor
countries are taught responsibility, but still given hope of some day improving
their status and being able to stand on their own.
MCA
strives to reward nations that are doing a good job of improving life equally
for all of their people. This is
the most important reason why the American people should back MCA.
Foreign countries requesting aid are judged on sixteen different
indicators that fall into three main categories: governing justly, investing in
people, and promoting economic freedom. Using
this system to determine recipients prevents money going to countries that would
abuse the money. For instance,
there have been times when foreign aid has ended up in the wrong hands and has
been used to buy weapons to carry out acts of terrorism.
Instead, with the MCA program, money will be directed to a country
providing for health care needs, increasing education and literacy, and
developing economic stability to all of its citizens.
When
I read about all of the poverty going on around the world and the millions of
people, especially children who die from starvation each year, I wonder: why was
I born in America with no need to worry about where my next meal will come from?
I have no answer to this question, but I believe it is my duty to try to
equalize the opportunities for people of all countries.
I cannot care for all the people in need, but it is my duty as a citizen
of the world to do as much as I can for my fellow people.
This includes being knowledgeable of the various international agencies
offering foreign aid. With this
information, I must then financially and verbally support the ones that are
managed wisely and that are working diligently to aid the impoverished.
However, it is impossible for an individual to keep current on the
numerous agencies requesting foreign aid. We
also need to have a new government program to help achieve our goals:
the Millennium Challenge Account is a proficient administrator of foreign
aid and is a great place to start!
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
three things that fund development are domestic capital, foreign investment, and
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?
The
two items mentioned were education and health care needs.
Q3)
When is money sometimes counterproductive, according to President Bush?
Money
can be 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 was developed by President Bush in 2002 as a way of
increasing the United States’ financial assistance to developing nations.
In the Millennium Challenge Account, developed nations will provide
greater contributions to developing nations.
In return for this aid, the recipients are expected to fight corruption
in their countries, support human rights, and follow the laws.
In addition, nations that invest in better health care, better schools,
and broader immunization will be rewarded.
Q5)
What are the three broad standards that President Bush expects the leaders of
the developing nations to adopt?
President
wants the leaders to adopt these standards: ruling justly, investing in their
people, and encouraging freedom.
Q6)
Describe President Bush’s challenge to development banks and explain why or
why not you favor it.
In
his speech, President Bush challenged developmental banks to continue to assist
foreign countries, but not by giving them a direct handout.
He feels it is more helpful to boost the economy of foreign countries by
buying their products. President
Bush also feels that aid needs to be given to improve the health and education
of all the people in the country. I
agree with President Bush’s ideas. It
is important not just to give a handout, which will soon be used up, but also to
give them aid that will also enable them to help themselves. In addition, I think it is better to give them grants rather
than loans. With loans, they are
putting themselves into more debt.
Q7)
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.
I
believe that 5% of the United States national income is committed to foreign
aid. .108% of the United States
national income is committed 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 taking care of the people in one’s own country
before assisting other countries. If
a government of a country does not take care of its own people, soon the economy
will deteriorate to the point where the government has no money to help other
countries.
Q9)
Describe and defend a “Mutual Benefit” attitude. (Use your head-you won’t find the answer in the required
reading.)
A
“Mutual Benefit” is when the government is helping other countries at the
same time as its own. Sometimes in
assisting other countries you are also boosting the trade and thus the economy
of your own country.
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 you required reading.
Conduct research using the Internet.
Duplicate examples from the same class will not be accepted.)
The
International Monetary Fund
was an aid program that lost $22.6 billion. Aid was given to promote a transition to the free market.
The United States provided aid in the form of technical assistance,
grants to political groups or nongovernmental organizations, and loans to
government groups. The aid failed
due to a number of problems, because of this the market reforms was largely
ineffective.
Food
for Peace is
an aid program that is dumping over $2 billion in agriculture.
This program often disrupts local agricultural markets and makes it
harder for poor countries to feed themselves.
Food for the peace was started in 1954 to help eliminate large farm
surpluses and to help hungry foreigners. In
reality, it reduces our agricultural policies, often with little concern for the
food recipients.
Foreign
Aid Wasteland
is an unsuccessful aid program because it is forcing Africa’s food production
to fall 20 percent, roads to collapse, and African’s faith to deteriorate.
Due to problems, average per capita income in the continent may be lower
than it was at the beginning. AID
kept financing the program long after its failure was evident.
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 you required reading.
Conduct research using the Internet.
Duplicate examples from the same class will not be accepted.)
The
Blanket Project is
a foreign aid program that gives blankets to other countries.
These blankets are used for the winter months for warmth.
This project sends a great amount of blankets to foreign countries to
help the people during a time of need.
Pact
has been a successful foreign aid program that has been around since the 1980s.
The pact budget has grown from $3 million to a high of $26 million. It has also expanded from seven countries to eighteen
countries. Most of the money comes
from USAID agreements and focuses on providing grants.
Pact deals with HIV\AIDS, protecting the environment, operating village
banks, and enhancing food.
The
Isaac Foundation
is a foreign aid program that was formed in 2002.
The foundation was based on the biblical character Isaac who was saved by
God. This foundation supports the
story that tries to save children who might otherwise be sacrificed into a
situation of homeless and poverty, or in some cases even bonded slavery.
This foundation also provides love, care, and support to children who are
suffering from diseases. This
program educates children on Christ’s love and gives them hope for the future.
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
believe that the government can offer aid to both our country and foreign
countries. We have an abundance of
money compared to other countries. It
may seem like we giving foreign aid a lot but compared to what we are keeping,
it is a small amount. Any increase to foreign aid would seem like a huge help to
the 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 U.S. foreign assistance.”?
I
believe this would be a good addition to our foreign policy.
If our country had proposals from foreign countries in writing, they
would hopefully cut down on misuse of foreign aid money.
It would also give our government something to stand on legally if there
was any question on how the money was being used.
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 requirements may unnecessarily eliminate some
countries.
3.
The separation of US foreign assistance into two agencies could lead to
lack of coordination and overlapping functions.
I
believe that the biggest concern is the separation of aid into two agencies.
There is not enough money as it is for all the foreign countries that
need help. If there is poor communication between the two agencies
causing an overlap of the money distributed, fewer countries will be reached and
thus fewer people helped.
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.)
The
negative opinion in the U.S. in not based on our WMA or WMD.
It is based on our foreign policy. If
we want to get rid of the negative opinion, we need to focus on our foreign
policy.
Q16)
What does the World Bank recommend as the United States’ “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 recommends $10-$15 billion annually for the United States' “just
and appropriate share”. I do not
think we have enough money to be giving such a large amount. Why create problems we do not have by risking getting further
into debt than we already are.
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.”?
I
think our funds should only be used for government foreign aid programs.
If we fund the NGOs and grassroots organizations there will eventually be
other groups that wanting funding too. Soon
our tax dollars will be funding all individual organizations and will not have
money to fund government foreign aid programs.
Q18)
how many countries would be affected positively by health-related investments
according to the Commission on Macroeconomics and Health (CMH)?
According
to CMH, 83 countries would be affected positively with health related
investments.
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?
$360
billion would be gained annually due to lives saved and increased economic
growth.
Q20)
Use the Internet for you research and name the two congressmen who introduced
H.R. 4524. Give a 2-line synopsis
of that bill.
The
congressmen who introduced H.R. 4524 were Christopher Smith along with the help
of John LaFalce.