*EPF207 11/26/2002
Transcript: White House Proposes Millennium Challenge Corporation
(Says it would be a "new approach" to providing aid) (450)

The Bush administration is proposing a new Millennium Challenge Corporation to administer $5,000 million a year in development aid for countries that fight corruption, open their markets and invest in health and education.

In remarks to reporters November 26, White House spokesman Ari Fleischer said the program would reward countries that follow "best practices" in transparency and rule of law and provide incentives for others to do the same.

The White House has not yet issued a fact sheet describing the new entity.

The quasi-public corporation is not a substitute for other U.S. development assistance but "a way of enhancing existing institutions," Fleischer said. "It's a new approach, a fresh approach to providing aid," he said.

News reports indicate the administration will forward to the 108th Congress early next year its proposal to establish the corporation. The corporation would be run by a Cabinet-level board of directors headed by the secretary of state, reports say.

Bush announced in March the proposed annual increase of $5,000 million in foreign development assistance by 2006.

Following is a transcript of Fleischer's remarks on the corporation:

(begin transcript)

QUESTION: What is the theory behind making the Millennium Challenge Corporation separate than the Agency for International Development? And part two, how does that fit into smaller government which is part of the President's agenda?

FLEISCHER: Well, on March 14th, if you remember, the President called for a new compact for global development that focused on accountability for both rich and poor nations alike. The President wanted to have a focus on aid that would reward countries and provide greater contributions as incentives to countries that follow transparency, rule of law, vigorously fought corruption, so that aid programs would not pour money into nations where the money didn't go to the people who needed it, and went instead to rulers of those countries.

Q: But why make it separate from the Agency of International Development or State Department?

A: Because this is intended to accelerate development in those countries that receive international assistance and to encourage best practices, as I indicated, in government corruption and increasing transparency. It's not a substitute for other development assistance. Our levels of aid have not changed. But we believe this is a way of enhancing the existing institutions to provide development assistance on -- a formula around the world to create greater incentives for nations around the world to combat corruption and to have transparency.

It's a new approach, a fresh approach to providing aid. There are many people around the world who are in need who need assistance, and it's always healthy to take a look at America's assistance programs and make them the most effective for the taxpayers, as well as for people around the world who depend on the United States to grow.

(end transcript)

(Distributed by the Office of International Information Programs, U.S. Department of State. Web site: http://usinfo.state.gov)

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