AP News, October 22nd, 2007
President Bush on Monday approved $285 million for Mongolia, the latest country to receive U.S. aid in exchange for committing to democratic reforms.
The public aid is part of the Millennium Challenge, a Bush initiative to reduce global poverty by trying to encourage economic freedoms and strengthen human rights. So far, about $5 billion is committed for 16 countries; Mongolia became the 15th to have a signed compact with the United States.
"The Millennium Challenge compact encourages countries to make a firm commitment to basic principles — principles that mean the government will listen to their people and respond to the needs of the people," Bush said in a Roosevelt Room ceremony with Mongolian President Nambaryn Enkhbayar.
"And today, Mr. President, we honor the success of your country and the commitment of your government to basic principles," Bush said.
Mongolia, a former communist country sandwiched between Russia and China, will receive the money over five years if it complies with all requirements. The largest share of the aid package will be used to improve the railroad system in Mongolia. Other money will go to support health and education.
Enkhbayar expressed thanks to Bush and the American people, and promised accountability and results.
He said Mongolia is pursuing an improved democratic society, built around an educated citizenry and a private-sector economy.
"I'm certain that this compact will inspire long-lasting, fruitful and mutually beneficial cooperation between the United States of America and Mongolia," he said. "Now we will embark upon the task of successfully transforming our people's ideas and expectations into reality."
Both leaders signed leather-bound copies of the compact and shook hands to a round of applause.
The Millennium Challenge Account has faced some skepticism in Congress, and criticism about the slow pace of money flowing to the countries.
Of the $5 billion committed, close to $400 million has been disbursed or contracted to be spent, said John Danilovich, chairman of the Millennium Challenge Corporation, which oversees the effort. That's not bad, he said, for a foreign aid program that began in 2004.
"This is not an easy program," he added. "It's not just, we're poor, here's the money. It's, we're poor and we're changing, we're reforming our system to deal with poverty and to sustain economic growth."
Bush has asked for $3 billion this year. The Senate has proposed $1.2 billion and the House recommended $1.8 billion. Bush used the signing ceremony to prod lawmakers for more money, saying "Congress must understand how important this program is for U.S. foreign policy."
