The Other War: Global Poverty and the Millennium Challenge Account

In March 2002, President Bush announced the creation of the Millennium Challenge Account (MCA), a bilateral development fund representing an increase of $5 billion per year over current assistance levels, to promote growth in reform-oriented developing countries. This book considers the potential of the MCA as well as the larger content of US foreign assistance in which the MCA must find its place. While the MCA could create incentives for governments to improve economic policies and governance, and improve investment climates, it could also add to the confusion of overlapping foreign assistance agencies. The authors urge the administration to clearly define the MCA's role and to address the chronic tensions between foreign policy and development goals - tensions that have been made more difficult by concerns over terrorism and national security. In making recommendations on how to implement the MCA effectively, this book closely examines previous aid efforts, trends in the US budget for foreign assistance, the agencies currently involved in administering US development policy, and the ways in which congress can influence and determine aid outcomes.