No Boondoggle to Tie Foreign Aid to Recipients' Core Values

Official corruption, it's plain to see, stifles entrepreneurship, innovation and investment in the poorest of nations. That's one important reason the Bush administration's visionary Millennium Challenge Account plan would, for the first time, promote prosperity in the developing world by tying foreign aid to a country's commitment to rule justly, invest in its people and embrace economic freedom.
Yet, the program's future is in doubt. The ideologues who bash it contend that legislative compromises linking U.S. aid to a nation's social performance threaten to turn the Millennium Challenge Account (MCA) strategy into a worthless boondoggle.

But the MCA proposal is a novel and constructive reform initiative. It promises to bring hope, opportunity and business to the neediest people on earth, but only after their governments demonstrate that their policies and institutions can realistically be expected to spur sustainable economic development.

Under the plan, an eligible country would request a monetary grant, enter into a contract with the U.S. government and submit to U.S. scrutiny. Any country that seeks MCA aid would need to encourage good governance, transparent regulation and open trade. And only measurable results would be rewarded with an incentive payout.

The pending MCA bill would energize the poorest of nations not only by affording them targeted financial assistance, but also by inviting the competition to qualify for it. As important, the program stands to root out official corruption and safeguard human rights and political liberty.

Corruption within developing countries