05 February 2002

Powell Says Development Aid to Be Gauged on Good Governance

U.S. to urge investment in well-run economies

By Susan Ellis
Washington File Staff Writer

Washington -- Secretary of State Colin Powell told a Senate committee February 5 that "a large part" of the Bush administration's approach to Africa and other developing regions will be to use a country's "renewed and strengthened concern with progress toward good governance as a prerequisite for [providing them with] development assistance."

Continuing, Powell said that "where conditions are favorable ... the rule of law is in place, [and] there is transparency in their economic and financial systems, then we will encourage investment; we will encourage companies to take a look at those nations that are moving in the right direction."

He said that Africans know that often their governments do not "deliver the health care, transportation, and other systems that they need to be successful in the 21st century," adding that U.S. policies will aim to put those countries "on the right path, move them in the right direction, and allow their people to enjoy the benefits that come from democracy and economic freedom."

Powell acknowledged that agriculture is the core of Africa's economies, and said the United States is working to revitalize the agricultural sector in an open system "in order to reduce hunger and to lift the rural majority out of poverty."

Fighting corruption, encouraging good governance, and getting rid of debt and of the "despotic regimes and individuals who hold their people back" is all part of the United States' agenda in Africa, he said.

He referred to the World Summit on Sustainable Development to be held in Johannesburg August 26 to September 4, 2002, saying those issues will be discussed there. Powell told the members of Congress that they had laid the foundation for U.S. efforts "with respect to the struggling economies of Africa" with passage of the African Growth and Opportunity Act (AGOA).

In AGOA's first year, he said, "we have seen substantial increases in trade with ... South Africa, by 11 percent; Kenya, 21 percent; Lesotho, 51 percent; and Madagascar, a whopping 117 percent -- all based on the first three quarters of 2001, compared to the same period in 2000."

Powell also remarked on the "excellent success" of the first U.S.-Sub-Saharan Africa Trade and Economic Cooperation Forum, held in October of 2000.

He did note, however, that "none of this potential economic success is possible if we don't do something about HIV/AIDS," which destroys families, societies, and nations.

Powell reported that pledges to the global fund to fight AIDS, tuberculosis, and malaria now exceed $1.7 billion ($1,700 million) and they continue to grow.

He said soon the fund is expected to accept proposals and begin disbursing money and that the United States will continue to support it with additional contributions.