Administration opens new era in foreign aid

WASHINGTON - A revolution in U.S. foreign aid, rewarding countries for how they govern, is finally ready to get under way, almost two years after first promised by the Bush administration.

The program will favor countries whose governments are judged to be just rulers, open to foreign investment and promoters of projects to meet their people's basic health and education needs.

Corrupt police states need not apply.

Administration officials expect this year to inaugurate President Bush's plan, known as the Millennium Challenge Account, which he outlined in March 2002.

It contemplated $5-billion annually for the program starting in 2006, a 50 percent increase over the base foreign aid budget of $10-billion.

The administration had hoped for $1.3-billion for the current budget year, which began Oct. 1, as a starter; Congress has provided nothing so far but is expected to approve $1-billion after it reconvenes this month.

"Poverty, weak institutions and corruption can make weak states vulnerable to terrorist networks and drug cartels within their borders," according to Bush's National Security Strategy report from September 2002.

Andrew Natsios, administrator of the Agency for International Development, calls it "a revolutionary new development initiative."

Based on long decades of experience, Natsios said, "money will not solve the problem of bad policy" but can accelerate progress in countries with enlightened governments.

© 2006 • All Rights Reserved • St. Petersburg Times 490 First Avenue South • St. Petersburg, FL 33701 • 727-893-8111 Contact the Times | Privacy Policy Standard of Accuracy | Terms, Conditions & Copyright