Millennium Challenge Account: Congressional Consideration of a New Foreign Aid Initiative [August 26, 2003]   [open pdf - 204KB]

"In a speech on March 14, 2002, at the Inter-American Development Bank, President Bush outlined a proposal for the United States to increase foreign economic assistance beginning in FY2004 so that by FY2006 American aid would be $5 billion higher than three years earlier. The new funds, which would supplement the current estimated $13.1 billion economic aid budget, would be placed in a Millennium Challenge Account (MCA) and be available on a competitive basis to a few countries that have demonstrated a commitment to sound development policies and where U.S. support is believed to have the best opportunities for achieving the intended results. These 'best-performers' would be selected based on their records in three areas - ruling justly, investing in people, and pursuing sound economic policies. Development of a new foreign aid initiative by the Bush Administration has been influenced by a number of factors, including the widely perceived poor track record of past aid programs, recent evidence that the existence of certain policies by aid recipients may be more important for success than the amount of resources invested, the war on terrorism, and the March 2002 U.N.-sponsored International Conference on Financing for Development in Monterrey, Mexico."

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CRS Report for Congress, RL31687
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