US gives Mozambique $507 million in aid

Corruption and red tape are main challenges to Mozambique's economic development

The Mozambiquan government has been allocated $507 million for its poverty alleviation programmes by the Bush Administration. The donation is part of the US's Millennium Challenge Corporation and is aimed at countries that adhere to good governance practices and are prepared to fight corruption.

Mozambique is still reeling from devastating floods which hit most of the country earlier this year. Armando Guebuza, the president of Mozambique, said the grant will go a long way in alleviating poverty in rural areas of his country.

Mozambique said it would use the money to rebuild crumbling roads and water supply systems in four impoverished provinces and construct a dam on its northern coast. It will also use the money to boost its battle with malaria, which kills about 150 Mozambicans each day.

US feels obliged to help poor countries
The Bush Administration granted similar aid to 11 other countries. Five of these are in Africa, and at the end of the month, Lesotho will be the sixth. The US says it feel morally obliged to bolster development in these poor countries. John Negroponte, the deputy secretary of state, said: "The millennium Challenge Corporation reflect the president's bold vision for a new and transformative approach to foreign assistance, built on accountability and responsibility. It is an approach that rewards countries for ruling justly."

Under the Millennium Challenge Corporation, the Bush Administration has made available $3.5 billion for poorer countries. Over $2 billion has gone to Africa.

However not everybody is applauding the Bush Administration's unilateral aid programme. Some point out that although these countries are not obliged to re-pay the money, they must abide by US foreign policy objectives. Something critics refer to as colonialism in reverse.