sharky
New Yorker
WASHINGTON (Reuters) - U.S. Treasury Secretary Paul
O'Neill said Wednesday his African tour with rock star Bono
was an ``intense'' experience but indicated he still felt the
antidote to widespread poverty lay with private-sector growth.
In his first major address since returning last Friday from
a 12-day swing through four African nations, O'Neill said the
failure of past aid efforts to assist the world's poorest
continent meant reforms were essential.
``The impoverished people of Africa -- and in poor nations
everywhere -- require a new kind of help, that goes beyond the
well-intentioned but disappointing results of the past 50
years,'' he told a Georgetown University audience.
While O'Neill donned a pair of Bono's trademark blue
wraparound sunglasses at the podium, his words made clear that
the Irish rock star -- a staunch advocate of increased aid and
more generous debt forgiveness -- had failed to transform the
Treasury chief's essential views on aid spending.
``In the long run, domestic entrepreneurship as well as
trade and foreign investment are far more important for
economic growth than official aid,'' he said.
O'Neill, who led a fact-finding tour through Ghana, South
Africa, Uganda and Ethiopia, was applauded for it by members of
the African diplomatic community who attended his speech.
He briefly donned the glasses, which were a gift from Bono
who wears the distinctive eyewear constantly, to remind the
audience the so-called ``odd couple'' tour was not all a grim
slog through orphanages, AIDS clinics and shantytowns.
NOT ODD AT ALL
O'Neill insisted he and Bono were not really so odd. ``We
both desperately want to see the people of Africa...living to
their full potential,'' he said, adding he was not yet ready to
announce policy recommendations from the trip.
The Treasury head did indicate that a fattened U.S. aid
purse will be opened most readily to nations that meet the Bush
administration's concept of well-led developing nations with a
chance of achieving sustained economic growth.
``What I mean by leadership is government officials at the
very top who believe in justice for their people, who believe
in their responsibility to create the rule of law and
enforceable contracts and who attack corruption,'' he said.
The United States intends to put up an extra $5 billion a
year in aid money, in the form of Millennium Challenge
Accounts, from which nations could apply for cash. O'Neill will
advise President Bush on criteria that applicant
countries must meet in order to qualify for the aid money.
O'Neill, a former businessman and advocate of
up-by-the-bootstraps private enterprise, said there were
instances in which aid was helpful but didn't hide his
skepticism about its ability to create lasting change.
BOOSTS PRIVATE SECTOR
O'Neill also suggested that forgiving past debts of poor
nations -- one of Bono's favored remedies for heavily indebted
African countries -- only went so far.
``I would agree that debt forgiveness may help, but it alone
is not the solution,'' he said, urging instead a Bush
administration proposal to help poor countries by offering
targeted grants rather than loans.
``It will eliminate the next generation of debt service
problems,'' he said.
Oxfam, one of the nongovernmental organizations working in
the continent, said later O'Neill should step up to the plate
to help Africa by announcing $1 billion of support for
education spending when finance ministers from wealthy nations
meet in Halifax on June 14-15.
The G7 finance ministers' gathering is to focus specially
on Africa's needs, and Oxfam spokesman Oliver Buston said
O'Neill should demonstrate the Bush administration was willing
to go beyond promises.
``Now is the time for action,'' Buston said.
O'Neill said future aid should support local leaders and
local solutions, saying it was ``sometimes shocking to see the
disconnect between the aid bureaucracies with their 15-year
plans and the availability of more immediate solutions.''
He said he saw three types of investments in Africa that
were effective: clean water, primary education and fighting HIV
and AIDS.
``When governments are investing in their people, providing
clean water, education and health care and when other aspects
of good governance are present -- just rule and economic
freedom -- prosperity can blossom,'' he said.
O'Neill said Wednesday his African tour with rock star Bono
was an ``intense'' experience but indicated he still felt the
antidote to widespread poverty lay with private-sector growth.
In his first major address since returning last Friday from
a 12-day swing through four African nations, O'Neill said the
failure of past aid efforts to assist the world's poorest
continent meant reforms were essential.
``The impoverished people of Africa -- and in poor nations
everywhere -- require a new kind of help, that goes beyond the
well-intentioned but disappointing results of the past 50
years,'' he told a Georgetown University audience.
While O'Neill donned a pair of Bono's trademark blue
wraparound sunglasses at the podium, his words made clear that
the Irish rock star -- a staunch advocate of increased aid and
more generous debt forgiveness -- had failed to transform the
Treasury chief's essential views on aid spending.
``In the long run, domestic entrepreneurship as well as
trade and foreign investment are far more important for
economic growth than official aid,'' he said.
O'Neill, who led a fact-finding tour through Ghana, South
Africa, Uganda and Ethiopia, was applauded for it by members of
the African diplomatic community who attended his speech.
He briefly donned the glasses, which were a gift from Bono
who wears the distinctive eyewear constantly, to remind the
audience the so-called ``odd couple'' tour was not all a grim
slog through orphanages, AIDS clinics and shantytowns.
NOT ODD AT ALL
O'Neill insisted he and Bono were not really so odd. ``We
both desperately want to see the people of Africa...living to
their full potential,'' he said, adding he was not yet ready to
announce policy recommendations from the trip.
The Treasury head did indicate that a fattened U.S. aid
purse will be opened most readily to nations that meet the Bush
administration's concept of well-led developing nations with a
chance of achieving sustained economic growth.
``What I mean by leadership is government officials at the
very top who believe in justice for their people, who believe
in their responsibility to create the rule of law and
enforceable contracts and who attack corruption,'' he said.
The United States intends to put up an extra $5 billion a
year in aid money, in the form of Millennium Challenge
Accounts, from which nations could apply for cash. O'Neill will
advise President Bush on criteria that applicant
countries must meet in order to qualify for the aid money.
O'Neill, a former businessman and advocate of
up-by-the-bootstraps private enterprise, said there were
instances in which aid was helpful but didn't hide his
skepticism about its ability to create lasting change.
BOOSTS PRIVATE SECTOR
O'Neill also suggested that forgiving past debts of poor
nations -- one of Bono's favored remedies for heavily indebted
African countries -- only went so far.
``I would agree that debt forgiveness may help, but it alone
is not the solution,'' he said, urging instead a Bush
administration proposal to help poor countries by offering
targeted grants rather than loans.
``It will eliminate the next generation of debt service
problems,'' he said.
Oxfam, one of the nongovernmental organizations working in
the continent, said later O'Neill should step up to the plate
to help Africa by announcing $1 billion of support for
education spending when finance ministers from wealthy nations
meet in Halifax on June 14-15.
The G7 finance ministers' gathering is to focus specially
on Africa's needs, and Oxfam spokesman Oliver Buston said
O'Neill should demonstrate the Bush administration was willing
to go beyond promises.
``Now is the time for action,'' Buston said.
O'Neill said future aid should support local leaders and
local solutions, saying it was ``sometimes shocking to see the
disconnect between the aid bureaucracies with their 15-year
plans and the availability of more immediate solutions.''
He said he saw three types of investments in Africa that
were effective: clean water, primary education and fighting HIV
and AIDS.
``When governments are investing in their people, providing
clean water, education and health care and when other aspects
of good governance are present -- just rule and economic
freedom -- prosperity can blossom,'' he said.