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Ärende: Press Release (060615) for Thu, 2006 Jun 15
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President Attends Initiative for Global Development's 2006 National Summit
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For Immediate Release
Office of the Press Secretary
June 15, 2006

President Attends Initiative for Global Development's 2006 National Summit
Willard InterContinental Washington
Washington, D.C.



9:55 A.M. EDT

THE PRESIDENT: Thank you all. Whatever successes this administration has
had in combating global poverty, Colin Powell gets a lot of credit.
(Applause.) I will spend some time talking about our responsibility as
government to address global poverty. It's a responsibility we take
seriously, and it's a responsibility that Colin Powell carried out in his
distinguished tenure as the Secretary of State of our country. I want to
thank you for being a friend, and thank you for your service to the
country. He's a good man. (Applause.)

Thank you all for allowing me to come by to speak. I appreciate the
co-founders and the leaders of the Global Development effort. I want to
thank you for having this summit. Thank you for being what I call social
entrepreneurs, people who care about the plight of other people.

The facts are these: Across the globe, more than a billion people live on
less than a dollar a day. That should be a troubling statistic to all
Americans. They lead lives of hunger, they lead lives of desperation. Every
day is a struggle just to survive. That struggle ought to inspire us here
in America. It's inspired you. It ought to inspire all our citizens.

I want to thank you for lending your expertise and your funds to address
problems alongside your government. Colin said, you know, this is not a
governmental effort, it's not a business effort, it's not an NGO effort,
it's a combined effort by a lot of compassionate hearts to address a
significant problem. And so I'm here to thank you for your commitment, and
to let you know we're pleased to stand with you.

I want to thank Susan Schwab, who traveled with me today. Maybe you don't
know who she is, but you will soon, because she just got sworn in as the
new Trade Representative for the United States. (Applause.) So who do you
pick to be the Trade Minister? Well, you pick somebody who is a good
negotiator, for starters, somebody who understands that opening markets is
in our national interest and that when you open a market, you make sure --
as we open our markets, you make sure you're treated fairly. That's what we
want. That's all we want. We want to be able to tell the American people
that free trade is good for our country, but fair trade means that it's
responsible. And so she understands that. She'll be a good, hard
negotiator, but she also understands something I understand, and that is
trade is one of the best ways to help lift people out of poverty. I'm going
to talk about that in a little bit. (Applause.)

I'm sorry Laura couldn't be with me here. She's a -- she is a person who
cares deeply about the suffering in places like the continent of Africa.
When she travels, she brings the message to the people there that a lot of
Americans care deeply about AIDS, or care deeply about hunger or malaria.
She sends her greetings. I'm lucky she said, yes, when I asked her to marry
me. I think this country is lucky to have her as an ambassadoress for the
good hearts of the American people. (Applause.)

I thank Bill Clapp and General Shalikashvili, former Senator Dan Evans,
Bill Ruckelshaus, co-founders of the Initiative for Global Development.
Thank you for being far-sighted, thank you for calling people to action. I
thank the members who are here, as well.

I appreciate Ambassador Randy Tobias. He had a pretty easy job there in
Indianapolis at one time. (Laughter.) I asked him to -- I asked him, I
said, look, Randy, you've got management skills, and you care, why don't
you serve your country; why don't you come here to Washington, D.C. and put
up with all the rhetoric and the noise and the sharp elbows and do
something for people around the world? And he did. He ran the -- he ran our
HIV/AIDS initiative, and he did a really good job.

America is on the leading edge of fighting HIV/AIDS, and one of the reasons
we're effective is because of Randy Tobias. And now he's -- (applause.) So
I'm confident he wanted to leave. "See, I got a place in Montana where I
can fish," I think you got one in Montana, don't you? Yes, he started
talking about his fishing place in Montana. My answer was, you're not
through yet. (Laughter.) I said, you need to run USAID. It's an important
part of helping deal with global poverty. It's an important part of our
strategy. I want to thank you for staying on, and I want to thank you for
your hard work and your vision. You represent the very best of corporate
America. You get your skills, you make a living, and then you come and
serve your fellow countrymen and the world. Randy, I really thank you for
the inspiration and the example you've set. (Applause.)

I'm going to talk about the Millennium Challenge Account. Colin mentioned
it. The head of it is here today, John Danilovich. We were really kind of
bureaucratic when we first got the thing set up. Like we weren't moving
money out the door, and Congress began to get nervous. I remember Colin was
coming to the Oval saying, look, it's a great idea, but we got to show some
results here pretty quick. Danilovich understands the job is to be less
bureaucratic and more forward-leaning when it comes to implementing the
Millennium Challenge Account strategy. I want to thank you for taking on
this important job.

And I also want to thank my friend, Rob Mosbacher, fellow Texan, who's
running OPIC. Appreciate you serving the country. Thanks for coming up from
Houston to serve.

Here's what I believe. I believe to whom much is given, much is required.
This country has been given a lot. We've got a great system, we've got
wonderful entrepreneurs, and we're wealthy. We're wealthy because of the
ingenuity of the American people. We're wealthy because there's
risk-takers. We're wealthy because we've got a fiscal system that
encourages the private sector to flourish. We're wealthy because we're a
country of rules and laws.

I also believe that with prosperity comes an enormous responsibility. We
have a moral duty to care for those who hurt here at home, and we have a
moral duty to care for those as best as we can for those abroad. That's
part of the foreign policy of our country. It's a foreign policy that
Secretary of State Powell helped implement -- helped form and implement. We
believe every person, no matter their income or economic status, bears the
image of a creator. That's what I believe. I believe every person, no
matter their income or their status or where they live, has dignity of
matchless value. And we believe that those who live in the most extreme
poverty deserve this country's help.

Fighting global poverty reflects this country's values. It serves our
nation's interests, as well. It's the country's economic interest that we
fight global poverty, because as developing nations grow in prosperity,
they create better lives for their citizens and markets for U.S. products.
It's in our security interests that we fight global poverty, because
weakened, impoverished states are attractive safe havens for terrorists and
tyrants and international criminals.

We believe that young people without opportunities are susceptible to
ideologies of hatred. And so by helping poor nations create a more hopeful
future, we can not only build prosperity, we reduce the appeal of
radicalism.

Our values and our interests draw us to the same conclusion: the reduction
of extreme poverty in our world must be a key objective of American foreign
policy. (Applause.) And it is. And so today I want to talk to you about the
need for us to expand trade, to promote freedom, and to reform the programs
that we have in place, in order to achieve results, in order to say that --
to the American taxpayer, the money is not only being spent, it's being
spent wisely.

First, the strategy to defeat extreme poverty begins with trade. That's
sometimes hard for some people to connect with. It's kind of a -- people
don't quite understand why that's the case. One way to describe it, the
value of trade, is this: The value of trade is more than ten times the
value of foreign investment and foreign aid combined. In other words,
prosperity as a result of trade is more likely -- ten times more likely to
have a positive effect on somebody living in a poor society than just
investment and grants.

History has shown what I'm talking about. Take the example of South Korea.
It's probably hard for some to remember back in the '50s, particularly if
you were born in the '60s -- (laughter) -- but South Korea was one of the
poorest nations in Asia. South Korea reformed its economy and opened its
markets to the world. And today, export growth -- the capacity for people
to find work in South Korea for products that are sold elsewhere -- has
made this country the 10th largest economy in the world.

India, for a long period of time, had restricted its markets. India opened
its markets to global trade 15 years ago. It has doubled the size of its
economy since then and created a middle class which is larger than the
entire population of the United States.

I don't believe these are isolated examples. The World Bank Study found
that developing nations that lowered their trade barriers in the 1990s grew
three times faster than those that did not. Economic growth is one
important way to reduce poverty. It's the most effective way to reduce
poverty. The best way to help millions mired in poverty is to expand the
benefits of global trade. That's part of this administration's strategy.

I asked Congress, and Congress granted Trade Promotion Authority. It took a
lot of work, as you recall, Mr. Secretary, but it was a necessary part of
our capacity to expand trade. And since then, we've completed negotiations
on free trade agreements with 15 nations on five continents with a combined
population of 200 million people.

We've built on the success of the African Growth and Opportunity Act. For
those of you who follow the economic vitality of Africa, you know that AGOA
has been a very effective policy put in place by my predecessor, President
Clinton. And we signed into line the AGOA Acceleration Act. In other words,
we took the step that President Clinton took and took it farther.

And it's worked. That's what's important for our citizens to understand.
Trade helps lift people out of poverty. Since AGOA's inception, U.S.
imports from Africa have increased by 114 percent. Last year, over 98
percent of U.S. imports from AGOA-eligible countries entered this country
duty free. When somebody is able to sell a product into the United States,
it means somebody is working. It means somebody has got a job. It means
that people aren't reliant upon the government to help them realize their
dreams. This is like -- AGOA has created new opportunities. Americans have
got to understand that when we talk about trade, we're not only talking
about enhancing economic growth and vitality, we're helping people get out
of poverty. Trade is an important part of making sure that we implement
this strategy.

You know, AGOA showed that bipartisan cooperation here in Washington is
possible. And one thing you can help is to make sure that bipartisan
cooperation on other trade agreements is possible in Washington, D.C.
(Applause.) If you're genuinely serious about reducing poverty, you need to
help us make sure this nation does not become a protectionist nation. The
tendencies are to say, let's just wall ourselves off from competition. But
if we become a protectionist nation, if we lose our confidence and our
capacity to compete in the global economy, it will make it much harder to
achieve the common goal of reducing global poverty.

Now we're confronted with a really good opportunity, by the way, to deal
with global poverty, and that is to complete the Doha Round of the WTO
negotiations. And it's tough sledding right now. You know, national
interests seem to be kind of more important than a -- than reducing
barriers and tariffs across the world. You know, local politics has a lot
to do with whether or not this Doha Round is going to get completed, and I
understand that. And I knew that going into the negotiations.

And that's why at the United Nations last year, I made this pledge on
behalf of the American people: We're ready to eliminate all tariffs and
subsidies and other barriers to free flow of goods and services, and we
expect other nations to do the same. That's what I said to get the Doha
round moving. See, we're ready to make the move -- on agriculture and
services and manufacturing, but we expect other nations to do the same
thing. We expect other nations to give us market access. I want to be able
to go to people here in the United States, producers, and say, we got you
market access so you can compete fairly. And that's why we're going to get
rid of the subsidies that now exist on the books.

The Doha negotiations are at a critical moment. It is -- in my view,
countries in Europe have to make a tough decision on farming. And the G20
countries have to make a tough decision on manufacturing. And the United
States is prepared to make a tough decision along with them. That's my
message to the world.

Susan's going to carry that message. I'm going to carry it to Europe next
week at the EU summit. Now is the time for the world to come together and
make this world a free trading world, not only for the benefit of our own
economies, but as an important part of the strategy to reduce poverty
around the world. (Applause.)

I think we have to expand freedom in order to reduce poverty. Free nations
produce the vast majority of the world's economic output. Many of the worst
dictatorships are some of the world's most-poorest nations. I believe
there's a correlation between prosperity and freedom. And this country of
ours will continue to pursue an agenda that understands that human liberty
is universal. It's just not a U.S. thing, it's its own -- liberty is
something that everybody yearns for. And the freer the world becomes, the
more prosperous the world becomes and the more likely people will not be
mired in poverty.

Nations that build institutions that secure the rule of law and respect
human dignity also are more likely to create an economic climate that
fosters investment and growth. And so we support the rise of free and
democratic societies across the world. And the story of freedom is one of
the really, really interesting chapters of the 21st century, when you think
about it. From Afghanistan to Iraq to Lebanon to Georgia to Ukraine to
Kyrgyzstan, people have gone to the polls and elected their leaders.

In the last five years, more than 110 million people have joined the ranks
of the free. That's an astonishing development when you think about it. And
it's a positive development for those of us who care deeply about global
poverty.

As more people gain their freedom, they will also gain the opportunity to
build a better life. That's a fact of life. And so this country has got to
be confident in our willingness, in our desire to help people -- to help
free people from the clutches of tyrants. I said in my second inaugural
speech, the goal of this country ought to be to end tyranny in the 21st
century. I could have easily have said, one way to reduce global poverty is
to reduce tyranny in the 21st century.

Free peoples need to do more than cast their ballots. We recognize that.
Going to the polls is not the kind of freedom necessary to reduce global
poverty. It's just the beginning of a process to reduce global poverty.

And so the United States has an obligation to help others build the
institutions necessary -- in a civil society -- necessary to be able to
deal in a -- with the advent of freedom. And so we're helping new
democracies build free institutions that are responsive to the people's
needs. And we're doing so through organizations like the National Endowment
for Democracy. We've worked to double its budget over the past five years.
Those funds support programs that will help form civic organizations. We're
helping dissidents become legislators. We're helping businesses in new
market economies organize trade associations and chambers of commerce. It's
the things we take for granted here in America, these funds are meant to
do.

It's one thing to promote trade, it's one thing to promote freedom, but
we've got to recognize that our own aid programs have got to help
complement those objectives. In other words, we want results from the money
we spend. That's what the American people expect, by the way. See, when we
talk about foreign aid, they expect the foreign aid to mean something. You
know, I travel around a lot. I think about people out there that are
working hard for a living, and they say, you know, you're spending this
money overseas, why? And the answer is, because not only do we have a moral
duty, it's in our national interest to do so.

But I've got to be able to tell them, as well, and anybody in elected
office has got to be able to say, we're making a difference with the money,
see; it's actually producing results. For decades, we provided aid with
good intentions. We didn't always ask if were getting good results. One of
the great reforms of Colin Powell's tenure as Secretary of State is he
started asking, what are the results of the programs; what are we
achieving?

Since 2002, we've committed to increase the resources we devote to fighting
poverty across the world. As Colin mentioned, since taking office, we more
than doubled assistance around the world from $10 billion to $27.5 billion.
It's the largest increase, by the way, of foreign aid since the Marshall
Plan. And you get a lot of credit for that, Mr. Secretary. I remember you
coming into the Oval Office saying, let's put our hearts out there for
people to see. And one way to do it is by increasing our budgets.

I want to remind you what we're doing with that money. We're fighting
HIV/AIDS, and we're helping countries fight malaria. We're expanding
education for women and girls. We're rewarding developing nations that move
forward with economic and political reform. And by the way, shortchanging
these efforts -- Congress has got to understand, in shortchanging these
efforts, if they choose to do so in the appropriations process, they would
undercut our long-term security and dull the conscience of our country. I
urge Congress to serve the interests of America by showing the compassion
of America and approve my full funding request for foreign assistance this
year. (Applause.)

And as we increase the resources, we'll increase accountability for those
who have received American aid. In many poor countries, it's really
important for all of us who are involved in this program to admit that
corruption runs deep. And a lot of times, the assistance we have provided
has been wasted or put in the pockets of corrupt officials. I know that's
unpleasant for some to hear, but it's a fact. If we expect the people to
support us in our efforts to be robust in our compassion overseas, then
we've got to recognize that sometimes that money gets stolen and people
don't get the results for the money that they expect.

So we decided to do something about it. We decided that our foreign policy
ought to recognize true compassion as measured by real improvements, not
just by the amount of money spent. And real improvement is the goal of our
assistance.

And so we set up the Millennium Challenge Account. It was set up under the
-- in the State Department when Colin was there. And here's what it says,
it says, we want to grant you money; we want to give assistance, but you've
got to be responsible. You, the recipient, have got to be responsible for
fighting corruption, embracing democratic government, encouraging free
markets, and investing in the health and education of your people.

I remember when we put that out it was a little controversial, as you
remember. I don't see what's controversial in that. I don't see what's
wrong with saying to a nation, you don't get any money if you're corrupt.
Because we believe countries are capable of getting rid of corruption. I
don't see what's wrong with saying, you've got to show real investment in
education and health care in order to receive our money. I think that's a
wise thing to ask. I think if part of the goal is to encourage economic
development, we ought to say to countries, in return for U.S. aid, open
your markets so you can enhance the prosperity of your citizens. Every
nation that applies for a Millennium Challenge grant develops its own
priorities and develops its own strategies. But one of the things we do --
and this is what Danilovich does and his staff does -- they develop clear
goals that are measurable. So we say, this is what you're going to do?
Fine. Show us as time goes on that you're doing it.

So far, eight nations have compacts in place that's worth over $1.5
billion. Additional 15 countries are now negotiating with the Millennium
Challenge Account. And we're going to get the money out the door so long as
they meet the criterion.

But the point I'm trying to make to you is that wise use of government
monies can help us achieve objectives which lead to the reduction of global
poverty. And so we're just through spending the money without asking for
results.

We're an optimistic nation. We believe countries have got the capacity to
change, that's what we believe. We refuse to accept the status quo. It is
time for other countries around the world to demand anti-corruption
regimes. If we're truly interested in reducing global poverty, those of us
who are granting money need to stand up with a united voice and say, we're
not going to tolerate corruption. (Applause.)

One of the things Randy Tobias and others are going to do at the State
Department, they're going to apply the same principle I just described to
you to all our development aid. We're going to insist upon transparency and
performance and accountability. We're going to ensure that every American
aid dollar encourages developing nations to build institutions necessary
for long-term success. And we're going to help developing nations achieve
economic independence. That's what we're going to do. We're going to get
away from this notion about kind of just analyzing monies based upon
percentage of this, that, or the other. We're going to be generous in our
contribution and demand results in return.

Now, what's interesting about the goal of eliminating poverty is that about
85 percent of American resources to the developing world come from the
private sectors. It's one thing for me to talk, and now I'm changing from
what we're doing to encouraging you to continue doing what you're doing.

The truth of the matter is, our generous nation is -- the generosity of our
nation is reflected in the private sector a lot. I think that's what makes
us such a unique country. You know, government helps, and government does a
lot. As I said, we doubled aid, but what our private sectors do is -- it's
unbelievable, when you think about it.

And corporate America has a responsibility. And for those of you who
represent the NGOs and faith-based groups, thank you for joining the cause,
as well. This is a collaborative effort. Some of the best work in fighting
poverty is accomplished in partnership with private institutions. The
Global Development Alliance has successfully built 400 worldwide alliances.
That's good. You've leveraged about $1.4 billion of taxpayers' dollars to
over $4.6 billion. In other words, you've taken the money we're spending as
kind of a -- I wouldn't call it a down payment, but it's part of a way to
really leverage your generosity.

And you're making a difference in the lives of millions of people. I'm
grateful for you. That's what I've really come to say. I've come to assure
you that the effort to eliminate global poverty is an integral part of our
foreign policy. And I think it needs to be a foreign -- part of foreign
policy after two-and-a-half years, by the way. I think it needs to be a --
I think it needs to be part of the calling of the United States in the 21st
century. (Applause.)

One of the moral objectives of our time -- the great moral objectives of
our time is to reduce poverty. I like what Alexis de Tocqueville said about
America. He's a pretty interesting observer. Back in 1832, he captured a
lot of the spirit of this country. He said this, he said, "When an American
needs the assistance of his fellows, it's very rare that it be refused.
When some unexpected disaster strikes a family, a thousand strangers
willingly open their purses."

That was the America he saw in the 1830s. It's still got to be the America
of the 21st century, as well, but not only to help our fellow citizens here
at home, but for our national interests and our economic interests, and
just to answer the call of our hearts, it ought to be our foreign policy.
It ought to be a center of our foreign policy and the center of the social
entrepreneurs in America.

I want you to know that when disaster strikes, we move. We moved hard for
the tsunamis, with a military presence that helped organize relief. When
the earthquake came in Pakistan, we didn't hesitate, we moved. We know that
when a neighbor needs assistance, that we have an obligation to help
provide it.

My assurance to you is that we will continue to stand with our brothers and
sisters who are poor to help as best as we possibly can, and I want to
thank you for helping, as well. God bless your efforts, and may God bless
our country. (Applause.)

END 10:25 A.M. EDT
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