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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
KEYWORDS:
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To: RCW2001
Isn't the Millennium Challenge Account set up away from the hold of the United Nations control?

What was the matter with just leaving this be? Why does an entire agency need to be formed?

When this agency and I am sure many others could deal with this so called account I never voted, nor asked for.

21 posted on 11/26/2002 9:16:04 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: Gunslingr3
Why can't this agency control this account as it seems they are now, as in post 21?


22 posted on 11/26/2002 9:19:23 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: RCW2001; Scholastic
So much for onetime Republican notions of balancing the budget and fiscal austerity. Bush is going to open up the wallets of US taxpayers to the tunes of tens of billions of dollars a year.
23 posted on 11/26/2002 9:19:29 AM PST by rightwing2
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To: Gunslingr3
US AID ORGANIZATION


24 posted on 11/26/2002 9:21:11 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: dalebert
Maybe none of the countries will qualify.

Bush will not be president for life (though right now he acts like it). As soon as a Dem gets in office the qualifications drop to how PC the aid will look.
25 posted on 11/26/2002 9:26:22 AM PST by self_evident
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To: RCW2001
What is the name of this new agency?
26 posted on 11/26/2002 9:36:06 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: AAABEST
I am confused as well, we have one, already-or did they whip up a web page (The US AID agency I posted the direct link to) already for the new agency?
27 posted on 11/26/2002 9:49:18 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: AAABEST
Drudge seems at the least not so happy with the President, right now. May be Drudge misconstrued the article's meaning...Who know's?????
28 posted on 11/26/2002 9:51:54 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: patton
Did you see the report today about SSA workers selling SS cards to illegals?

I saw it, it's the tip of the iceberg.

29 posted on 11/26/2002 9:55:21 AM PST by Joe Hadenuf
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To: RCW2001
I getting tired. I don't feel like working 'anymoe'.
30 posted on 11/26/2002 10:01:58 AM PST by CWRWinger
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To: Jorge
So you can be arrested if that's what you want. You still have the choice

Choice? The choice of giving our hard earned money to the government, so they can turn around and give it away to people in foreign lands, or not pay our taxes and go to jail? This is a choice?

It's my opinion that as long as either of the two parties cartels are in DC, they will continue to spend and take our money to give to people that have no earned it nor deserve it.

This is not much of a choice is it?

What choice will you be making?

31 posted on 11/26/2002 10:03:24 AM PST by Joe Hadenuf
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To: RCW2001

32 posted on 11/26/2002 10:35:42 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: rightwing2
Now, now, now.

This agency will act as a carrot and stick to help develop nations into good little democratic republics, and help prevent the T word. (Sarcasm//off)

33 posted on 11/26/2002 12:42:17 PM PST by Scholastic
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To: self_evident
YOu are right, Bush won't always be around to monitor the bucks. Maybe the plan will have to be abondoned after a couple of years. Communism is taking root in South America so we need a plan. Maybe a really big bomb.
34 posted on 11/26/2002 5:28:34 PM PST by dalebert
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To: Willie Green
Do they call you Smart Willie? This article says "Bush Plans...." It may never happen.
35 posted on 11/26/2002 5:31:47 PM PST by dalebert
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To: Scholastic; Gunrunner2; IronJack; belmont_mark
This agency will act as a carrot and stick to help develop nations into good little democratic republics, and help prevent the T word. (Sarcasm//off)

I suspect that our intervention in socializing the economies of foreign countries will do about as much good as say the intervention of the IMF (which led to the collapse of the Argentine economy a year ago) and engender equally as much good will. I was in Buenos Aires this past June as a member of a DoD led government delegation and stayed at the Sheraton which is a fine hotel. Unfortunately, unbenownst to us, the IMF was staying there too and the IMF protesters protested en masse right on the hotel grounds and started a couple small fires. We were told that our safety could not be guaranteed and to remain in the hotel for the duration of the evening.
36 posted on 11/27/2002 5:09:26 AM PST by rightwing2
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To: rightwing2

37 posted on 11/28/2002 8:21:22 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: Scholastic

38 posted on 11/28/2002 8:23:48 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: Militiaman7; 68-69TonkinGulfYatchClub; agitator; amom; Alamo-Girl; madfly; backhoe; lowbridge; ...

39 posted on 11/28/2002 8:28:32 AM PST by TaRaRaBoomDeAyGoreLostToday!
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To: RCW2001
get bush out of the candy store...he's giving away the store...he's going to break the bank...he's killing the taxpayers...does bush think our pockets have no bottom...he keeps spending money...he's worst than the dems...he's all spending and no cutting...
40 posted on 11/28/2002 8:32:17 AM PST by Bill Davis FR
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