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Far more than in traditional aid programs, the new program, known as the Millennium Challenge Account, will demand that recipient states be accountable for the American tax dollars they spend.
"The Millennium Challenge Account will fund select, top-performing countries.
In addition, it qualified for a second tranche of $1 billion from the U.S. Millennium Challenge Account.
Mr. Bush has announced a $5 billion "Millennium Challenge Account," new grants to poor countries with good governments.
The Millennium Challenge Account and the AIDS fund can serve as models for future reforms in foreign aid, he said.
In 2002, he did set up a Millennium Challenge Account, which was supposed to direct money to developing nations.
If fully financed, the Millennium Challenge Account would reflect close to a doubling of the American aid that goes primarily to promote development in poor countries, analysts say.
Earlier this year, the Bush administration requested $1.3 billion, or a first installment, for the "Millennium Challenge Account," the president's plan to increase foreign aid to unprecedented levels.
A return to this failed approach is odd in an administration that promised last year to revolutionize foreign assistance through the Millennium Challenge Account.
What about America's new Millennium Challenge Account, budgeted this year at $1 billion, but to be scaled up to $5 billion per year by 2006?
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