U.S. names 63 states as eligible for new aid

U.S. names 63 states as eligible for new aid

Agence France-Presse, Washington

The United States on Tuesday named 63 countries including Indonesia eligible to share billions of dollars in U.S. aid under a new program aimed at rewarding developing nations which commit to democratic and free market reform.

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

Nations named on Tuesday will be able to compete for a slice of the aid under the program, 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 fledgling states like East Timor and Bosnia-Herzegovina, world's largest Muslim populous state Indonesia, South Asian giants 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 of the Treasury John Snow, U.S. Trade Representative Robert Zoellick, and the head of the U.S. 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. "Alleviating their suffering also holds profound implications for freedom and security across the globe."