    [Weekly Compilation of Presidential Documents Volume 42, Number 24 (Monday, June 19, 2006)]
    [Pages 1139-1144]
    [Online from the Government Publishing Office, www.gpo.gov]

    <R04>
    Remarks at the Initiative for Global Development's 2006 National Summit

    June 15, 2006

        Thank you all. Whatever successes this administration has had in
    combating global poverty, Colin Powell gets a lot of credit. 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.
        Thank you all for allowing me to come by to speak. I appreciate the
    cofounders 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. 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.
        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
    ambassadress for the good hearts of the American people.
        I thank Bill Clapp and General Shalikashvili, former Senator Dan
    Evans, Bill Ruckelshaus, cofounders of the Initiative for Global
    Development. Thank you for being farsighted. 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, see; why don't you come here to
    Washington, DC, 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. 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

    [[Page 1140]]

    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.
        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. 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 10
    times the value of foreign investment and foreign aid combined. In other
    words, prosperity as a result of trade is more likely--10 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

    [[Page 1141]]

    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 tenth
    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 5 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. It was put in place by
    my predecessor, President Clinton. And we signed into law 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, the 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, DC. 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 G-
    20 countries have to make a

    [[Page 1142]]

    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.
        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 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 5 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 of Democracy. We've worked to double its budget over the past
    5 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 we 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

    [[Page 1143]]

    across the world. As Colin mentioned, since taking office, we more than
    doubled assistance around the world from 10 billion to 27\1/2\ 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.
        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.
        And 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've set up the Millennium Challenge Account. And 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\1/
    2\ 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
    anticorruption 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.''
        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've

    [[Page 1144]]

    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 sector. 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've 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 downpayment,
    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 2\1/2\ 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.
        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 the 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.

    Note: The President spoke at 9:55 a.m. at the Willard InterContinental
    Washington.