TO THE CONGRESS OF THE UNITED STATES:
I am pleased to transmit a legislative proposal to establish the
Millennium Challenge Account and the Millennium Challenge Corporation. Also
transmitted is a section-by-section analysis.
The Millennium Challenge Account (MCA) represents a new approach to
providing and delivering development assistance. This new compact for
development breaks with the past by tying increased assistance to
performance and creating new accountability for all nations. This proposal
implements my commitment to increase current levels of core development
assistance by 50 percent over the next 3 years, thus providing an annual
increase of $5 billion by fiscal year 2006. To be eligible for this new
assistance, countries must demonstrate commitment to three standards --
ruling justly, investing in their people, and encouraging economic freedom.
Given this commitment, and the link between financial accountability and
development success, special attention will be given to fighting corruption.
The goal of the Millennium Challenge Account initiative is to reduce
poverty by significantly increasing economic growth in recipient countries
through a variety of targeted investments. The MCA will be administered by
a new, small Government corporation, called the Millennium Challenge
Corporation, designed to support innovative strategies and to ensure
accountability for measurable results. The Corporation will be supervised
by a Board of Directors chaired by the Secretary of State and composed of
other Cabinet-level officials. The Corporation will be led by a Chief
Executive Officer appointed by the President, by and with the advice and
consent of the Senate. This proposal provides the Corporation with flexible
authorities to optimize program implementation, contracting, and personnel
selection while pursuing innovative strategies.
The Millennium Challenge Account initiative recognizes the need for
country ownership, financial oversight, and accountability for results to
ensure effective assistance. We cannot accept permanent poverty in a world
of progress. The MCA will provide people in developing nations the tools
they need to seize the opportunities of the global economy. I urge the
prompt and favorable consideration of this legislation.
GEORGE W. BUSH