*EPF112 03/18/2002
President Bush Committed to Development, State's Larson Says
(Seeks international partnership, he adds) (490)

By Andrzej Zwaniecki
Washington File Staff Writer

Monterrey, Mexico -- President Bush's upcoming address to participants of the U.N. Financing for Development (FfD) conference will underscore his commitment to promoting economic development around the world, U.S. Under Secretary of State Alan Larson says.

The president will visit Monterrey, Mexico, where the conference takes place March 18-22.

During a March 18 briefing for delegates from developing countries, Larson said the president's development initiative, the New Compact for Development, contains a very powerful message about the United State's commitment to development.

In a March 15 speech at the Inter-American Development Bank in Washington, Bush announced a $5,000 million increase in official aid over three budget years beginning in fiscal year 2004. The additional aid would go to developing countries that demonstrate a strong commitment to good governance, health and education, and sound economic policies.

Larson said the new money would be provided in the form of grants, although the administration has not yet decided which channels will be used to distribute the new funds.

He said that money from the Millennium Challenge Account, as the new fund is called, would be used to reward countries that show a willingness to help themselves through policy frameworks that foster economic growth and facilitate productivity increases.

Larson said that the president's objective is to develop and expand this program in partnership with other countries, including the European Union and developing nations.

"If we can work with partners committed to the same goals, we want to work with others," Larson said. Otherwise, he added, the United States will pursue this initiative alone.

Responding to a question about funding levels for development assistance, Larson emphasized that the United States has never been party to any agreement to increase its official development assistance (ODA) to 0.7 percent of its gross national product (GNP). Because developing countries' ODA as a percentage of their gross national product (GNP) has been falling in recent years, he said, the United States decided to focus its development efforts on outcomes rather than inputs.

Larson commended the European Union for its recent pledge to increase its ODA to 0.39 percent of the combined GNPs of its member countries. But he emphasized that with expected benefits from expanded trade and private investment flows, no one really knows how much assistance is needed to reach the internationally agreed development goals. These goals include halving a number of people living in extreme poverty by 2015.

"We are not here for a beauty contest but to make this conference a turning point in development," Larson said.

U.S. ambassador to the United Nations John Negroponte, who also participated in the briefing, emphasized the value of approving the FfD final document -- the so called Monterrey Consensus -- in advance of the conference. Having a strong final document already accepted, he said, is freeing participants to engage in genuine and substantive discussions.

(The Washington File is a product of the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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