3/16/06

Millennium Challenge Corporation: Bush's Fake Aid

In March 2002, with one war raging in Afghanistan and another looming in Iraq, President Bush announced that he intended to undercut terrorism by attacking poverty overseas through his aid initiative - the Millennium Challenge Corporation.

Under his watch, the president said, America would increase its annual foreign aid to $5 billion. And instead of giving handouts, Bush's plan recognized that poverty cannot be conquered without economic development, and that countries should continue to receive aid only if they use it effectively.

In a pattern that has become a hallmark of the administration, however, Bush's aid initiative - the Millennium Challenge Corporation - has become an object lesson in dramatic ideas followed by disastrous action.
- 4 years into the initiative, the Millennium Challenge Corporation has only offered assistance to 6 countries, offering just $1.2 billion out of the $5 billion promised.
- In some cases, the MCC appears to be using aid to reward countries that support the president's war on terror - even though it is not supposed to base assistance on political favoritism.
- Did we mention that those charged with setting up the MCC were drawn not from the world of international aid but from the Treasury Department and the White House budget office.
- Instead of bolstering America's image in the world, as Bush envisioned, the MCC is fueling frustration toward the US.

[Based on excerpts of an article by Joshua Kurlantzick, Rolling Stone]

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