Global Economy

US foreign aid: A spotlight on war
By Emad Mekay

WASHINGTON - US President George W Bush unveiled on Monday a proposed increase in foreign aid in the 2004 budget, with most of the extra going to countries that have joined Washington in its war on terror.

"The budget for 2004 meets the challenges posed by three national priorities: winning the war against terrorism, securing the homeland, and generating long-term economic growth," Bush said in a statement on the White House website.

State department officials told reporters that the increase in the foreign affairs budget, part of the State Department allocations, would target security assistance to help key countries that have signed on to the anti-terrorism campaign, launched after September 11, 2001.

According to the State Department, US$4.7 billion have been set aside for counter-terrorism, compared to $2 billion for what the department said would be new programs for the war against poverty.

"There is no doubt that this budget funds the president's commitment to winning the war on terror," said Christopher B Burnham, assistant secretary for resource management. "It's reflected throughout the numbers and reflected throughout the foreign assistance."

The amount would include military assistance to what the officials called "frontline states", a group of 25 countries that includes the Philippines, Afghanistan and Yemen, nations that have joined the war on terror. The aid would be in the form of defense services, equipment and training.

Of the $2 billion assigned for the fight against poverty, $1.3 billion will go to the Millennium Challenge Account, an assistance program proposed by Bush last year to tie increased development aid to governments' efforts to improve education, democracy and other governance indicators.

The new program reflects the administration's commitment to help create democratic, economically secure countries, Burnham said.

Despite accusations from anti-poverty activists that the account would be inadequate to meet the huge needs of poor nations, officials said that the amount was adequate to fully fund the first of a five-year program.

"One point three billion dollars is already a considerable amount, understanding that it takes some lee time before you can develop the kind of pipeline to execute the project the administration envisions for the Millennium Challenge Account," said Joseph W Bowab, deputy assistant secretary for foreign assistance programs and budget.

States receiving account funds will be answerable for the money and will need to meet certain criteria established by a new authority that will monitor the account. All countries with average per capita incomes below $1,435 will be eligible.

Officials say that the new funding mechanism will reward nations that root out corruption, respect human rights, adhere to the rule of law, open their markets and invest in health care, schools and immunization.

Sixteen countries are on the initial list to be evaluated after Congress approves the program in coming months, said Patrick Cronin, assistant administrator at the US Agency for International Development (USAID).

Of the $2 billion dollars in the budget request for anti-poverty efforts, $450 million would go to combat the HIV/AIDS pandemic, focusing on Africa and the Caribbean. On other fronts, more than $730 million is budgeted for support anti-narcotics efforts in the Andean region. Colombia will get $463 million. "That's another war we intend to win," Burnham said.

Such increases fall under the umbrella of $28.5 billion allocated to foreign affairs agencies, an 11.2 percent increase from 2003. But those numbers contrast starkly with the whopping allocations Bush requested for the US military - $380 billion, a $15 billion rise from 2003.

The budget also calls for $41 billion for homeland security, a jump of $2.5 billion or 7.6 percent, which would more than double funding over the past two years. Total US government spending in 2004 will be $2.2 trillion, a 4.2 percent increase over 2003 levels.

(Inter Press Service)
 
Feb 5, 2003




The economics of a global empire (Aug 14, '02)

Japan's troubled foreign aid policy (Jul 30, '02)

The IMF: Beyond repair (Apr 22 '00)



 

Affiliates
Click here to be one)

 

 
   
         
No material from Asia Times Online may be republished in any form without written permission.
Copyright Asia Times Online, 6306 The Center, Queen’s Road, Central, Hong Kong.