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Bush Plans New Agency to Dole Out Billions in Aid
Reuters ^

Posted on 11/25/2002 8:43:37 PM PST by RCW2001

Nov. 25

— By Adam Entous

WASHINGTON (Reuters) - President Bush plans to create a new government agency to dole out billions of dollars in foreign aid, forcing the world's poorest countries to compete against one another if they want a share, administration officials said on Monday.

Strict conditions would be set for countries to qualify under the so-called Millennium Challenge Account program aimed at rewarding cash-strapped governments that embrace civil rights, root out corruption, open up their markets and adopt other policies favored by Washington.

Taking on critics who say the United States does not provide its fair share of foreign aid, Bush has promised $5 billion a year for the new program starting in fiscal 2006. Money would begin to flow in the fiscal 2004 budget, which will be unveiled in February, but officials said the dollar amounts for 2004 and 2005 have yet to be set.

The money would be in addition to the roughly $10 billion the United States distributes each year for foreign development assistance or $17 billion counting security funds.

"The evidence shows that when official development assistance is put into a policy environment that is a bad one, it's not just ineffective, it's downright harmful. It perpetuates bad policies, it perpetuates misery and it crowds out private capital," a senior administration official said.

In contrast, the official said, when foreign aid is directed to countries with sound policies, private capital increases, helping to boost economic growth and fight poverty.

At a U.N. development conference in March, Bush touted the program as part of the U.S.-led war against terrorism, and put his advisers to work hammering out the details.

Under Bush's plan, the Millennium Challenge Account would be rolled out in phases over the next three years.

In fiscal 2004, the world's poorest countries, including Haiti, Nepal and Ghana, could compete for assistance.

The number of eligible countries would expand in the second and third years as program resources grow to a total of $5 billion annually.

Once fully phased in, the Philippines, Jordan, Thailand, Peru and more than 100 other countries could compete for foreign aid, but administration officials expect just 10 to 20 to receive assistance each year under the program.

COUNTRIES RANKED

To win a share of the resources, countries would be ranked based on 16 separate "performance indicators," from civil rights to spending on public health and education.

A country's' "economic freedom" would be judged on its credit rating, inflation, budget deficits, openness to trade and quality of regulatory policies.

Bush drew the line at corruption. "Corruption is pass-fail. If you can't pass corruption you're presumed ineligible," an official said.

Those countries which perform better than the average on most indicators could qualify for a share of the resources, pending a review by a cabinet-level panel which will make final recommendations to the president.

To administer the program, Bush will ask Congress to create the so-called Millennium Challenge Corporation. The independent agency would be supervised by a board of directors composed of cabinet-level officials and chaired by Secretary of State Colin Powell.

Officials said the new agency would directly employ around 100 people and draw heavily on the expertise -- and staff -- of the U.S. Agency for International Development and other federal departments.

The new aid could flow to the countries themselves, as well as nongovernmental organizations and the private-sector.

As initially proposed earlier this year, $1.67 billion would start flowing in the fiscal 2004 budget climbing to around $3.33 billion the following year. At the end of the three-year start-up period, an extra $5 billion a year would automatically be included in the budget.

But administration officials said the fiscal 2004 commitment would probably be smaller than the $1.67 billion initially promised since it remains to be seen how many countries will qualify.

Mary McClymont, president of InterAction, welcomed the plan but expressed concern about the administration's commitment to provide full funding. "It could be a very important tool to help improve overall aid effectiveness and fight poverty," she said. "But of course what we will be watching is to make sure the funds in fact materialize."


TOPICS: Foreign Affairs; Front Page News; Government
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1 posted on 11/25/2002 8:43:37 PM PST by RCW2001
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To: RCW2001
Why am I not excited about this? Maybe because I'm a taxpayer and will be paying for it?
2 posted on 11/25/2002 8:46:57 PM PST by Ciexyz
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To: Ciexyz
Probably because the US will not qualify (failed on corruption) - Did you see the report today about SSA workers selling SS cards to illegals?
3 posted on 11/25/2002 8:52:36 PM PST by patton
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To: RCW2001
President Bush plans to create a new government agency to dole out billions of dollars....

Another one?

4 posted on 11/25/2002 8:53:12 PM PST by AAABEST
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To: Ciexyz
"Why am I not excited about this? Maybe because I'm a taxpayer and will be paying for it?"

That's just what I was thinking. Who knows, maybe GW means it about corruption being a pass/fail. Few third world countries can pass the corruption test, even the countries listed in the article.

Thailand, for instance. In 1995, I think it was, the Internal Minister told government employee's, on national television no less, that since they would not be getting a raise, they should solicit bribes from the people.
5 posted on 11/25/2002 8:54:37 PM PST by jimtorr
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To: Ciexyz
No, no, no, it's because you're racist and against those from different countries of origin besides your own. If you were a good Republicrat, you'd want GWB to go even farther. Maybe he could give aid to countries who show PROMISE in human rights, economic rights, and corruption.

"Hey...Ghana's not as bad as it used to be! Let's send them a billion bucks to say thank you!"

Imagine how people who contribute most of the taxes in this country must feel. Warren Buffett must be ecstatic at the notion that he's had almost half his yearly income seized to build a better %^&*ing GHANA.

THIS MONEY IS NOT YOURS TO GIVE, GEORGE.
6 posted on 11/25/2002 8:55:28 PM PST by LibertarianInExile
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To: RCW2001
I think this may cause some heartburn with some.

I do like the idea of competing for the dole. Our foreign aid outlays are indeed smaller as a percentage of GDP, but we make up for that in other ways that are not put into dollar and cents terms, such as military assistance, grants, forgiven loans, IMF and other funds that we allocate.

Then on the other hand, the world view of the U.S. as a bully and hothead seems to be growing. Something does need to be done but free money breeds contempt.IMHO.

7 posted on 11/25/2002 8:59:32 PM PST by Cold Heat
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To: LibertarianInExile
THIS MONEY IS NOT YOURS TO GIVE, GEORGE.

Sure it is. We give it to the Gov't and then they dole it out as they see fit.
If we don't like it we vote them out of office.

8 posted on 11/25/2002 9:00:11 PM PST by Jorge
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To: RCW2001
A thought just crossed my mind.

I would be for this if we took our U.N. dues and put them in this fund.

After we padlock the N.Y. offices and put it up for rent.

9 posted on 11/25/2002 9:04:25 PM PST by Cold Heat
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To: Jorge
THIS MONEY IS NOT YOURS TO GIVE, GEORGE.

Sure it is. We give it to the Gov't and then they dole it out as they see fit. If we don't like it we vote them out of office.

"There are people who think that plunder loses all its immorality as soon as it becomes legal. Personally, I cannot imagine a more alarming situation." -- Frederic Bastiat

10 posted on 11/25/2002 9:06:11 PM PST by Gunslingr3
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To: Ciexyz
bttt
11 posted on 11/25/2002 9:08:09 PM PST by Joe Hadenuf
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To: Jorge
http://www.kmj580.com/Manders/Crocket.html

Taxation is not a contribution--there's a difference between being coerced and being generous. We don't give it to the government, Jorge. They take it from us. If we don't 'give' it to them, THEY CAN ARREST US.
12 posted on 11/25/2002 9:08:20 PM PST by LibertarianInExile
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To: RCW2001
Using the estimates of the Whitehouse and DOD, Retired Disabled Veterans will be funding this with their pensions.
13 posted on 11/25/2002 9:15:59 PM PST by Militiaman7
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To: Ciexyz
Looks like many strings are attached to this money. Maybe none of the countries will qualify. Thought I read about this months ago?
14 posted on 11/25/2002 9:18:57 PM PST by dalebert
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To: LibertarianInExile
We don't give it to the government, Jorge. They take it from us. If we don't 'give' it to them, THEY CAN ARREST US.

So you can be arrested if that's what you want. You still have the choice.
Most of us gove it willingly. Considering we want roads to drive on, Police forces to protect us, a Military force etc. That's only reasonable.

15 posted on 11/25/2002 9:44:53 PM PST by Jorge
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To: RCW2001
Will Bush be running on the Repub ticket in '04 or the Dem ticket?
16 posted on 11/25/2002 10:12:28 PM PST by Ian McGreggor
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To: Jorge
So you can be arrested if that's what you want. You still have the choice.

The same 'choice' one faces when extorted by a mobster - kidnapping.

Most of us gove it willingly. Considering we want roads to drive on, Police forces to protect us, a Military force etc. That's only reasonable.

Nice job of obfuscation! Roads are funded by gasoline taxes, police by local community taxes, and the military accounts for 16% of federal government spending in 2002. I'd rather cut federal taxes by 80% than have my money confiscated and redistributed to people in other countries. It's crap like this that makes it clear there's no principled difference between Republicans and Democrats. Their eagerness to confiscate and redistribute our money as they see fit is merely a matter of degrees.

17 posted on 11/26/2002 3:46:35 AM PST by Gunslingr3
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To: RCW2001
None of these countries deserves a dime of my money.

I earned it, I should keep it.

Ron Paul 2004
18 posted on 11/26/2002 4:14:36 AM PST by WhiteGuy
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To: RCW2001
bump
19 posted on 11/26/2002 9:11:50 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: dalebert
Thought I read about this months ago?

It was the subject of the Hildebeast's book.
Somebody must've taught Dubya how to read.

20 posted on 11/26/2002 9:14:19 AM PST by Willie Green
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