New Vision (Kampala)

Uganda to Share Us$1b for Reforms

5 February 2004


Kampala — The United States on Tuesday named Uganda among 63 countries eligible to share billions of dollars in US aid under a new programme aimed at rewarding developing nations which commit to democratic and free market reform.

A billion dollars has already been made available by Congress for the fiscal year 2004 and President George Bush on Monday asked lawmakers to approve $2.5b for the account in fiscal year 2005.

Nations named on Tuesday will be able to compete for a slice of the aid under the programme, billed by the Bush administration as a revolutionary way to wean poor nations off long-term aid and prevent assistance from disappearing into the coffers of corrupt states.

Eligible recipients include East Timor and Bosnia-Herzegovina, India and Pakistan, and Uganda, Nigeria and Senegal, which Bush visited during a quick tour of Africa last year.

The announcement followed a meeting on Monday of the board of directors of the Millennium Challenge Corporation (MCC) which will administer the aid.

Secretary of State Colin Powell chairs the board, which also includes Secretary to the Treasury John Snow, US Trade Representative Robert Zoellick, and the head of the US Agency for International Development Andrew Natsios.

Powell said at the start of the meeting on Monday that "People matter. The plight of the world's poor presents all of us with a profound moral challenge," he said.

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