The resignation of Paul Applegarth as the CEO of the MCC, followed by the news that Congress has cut back the funds that President Bush requested for the fledgling aid agency has both critics and supporters of MCC wondering whether it can live up to its bold vision. Although the MCC made a reasonable amount of progress in its first year, whoever becomes the new head will face major challenges. Read Challenges for the New Leader of the Millennium Challenge Corp., by Steve Radelet and myself.Meanwhile Celia W. Dugger at the New York Times reports that
"with the United States under heavy international pressure to double aid to poor countries, one of President Bush's signature foreign aid initiatives is facing severe cuts in its proposed budget, intense criticism from African leaders and the departure of its director after only a year in the job."
Dugger reports that on Monday
"leaders of five African nations complained forcefully to the president about what they saw as the extremely slow pace of grant making. Mr. Bush, in reply, publicly promised that his administration would work harder and faster. This week's series of unfortunate events contrasts with the soaring hopes the president voiced when announcing plans for the Millennium Challenge Account more than three years ago."
The story was picked up by the International Herald Tribune as "Bush's Good Intentions Get Slashed."Meanwhile, a Reuters story by Vicky Allen picked up by ABC News on-line as "U.S. House Panel Trims Bush's Pet Foreign Aid Plan" also focused on the cuts to the MCC in the $20.3 billion foreign aid bill approved unanimously by the House Appropriations foreign aid subcommittee. As the story notes, the bill included $1.75 billion for the Millennium Challenge Account, $1.25 billion less than Bush wanted.In fact, less than full funding for the MCC had long been anticipated, and the $1.75 billion was actually a little higher than the $1.5 billion we expected. But coming quickly on the heels of Paul Applegarth's resignation, the Congressional action definitely contributed to increased public awareness of the challenges that face the MCC.
"By taking the side of liberty and good government,"
he declared in March 2002,
"we will liberate millions from poverty's prison."
