One approach is that of the Millennium Challenge Corporation, which focuses on countries that have met rigorous criteria, from upholding political rights and the rule of law to controlling inflation and investing in girls' education. Under MCC compacts, we provide funding and technical support; the country provides the plan and leads the way toward achieving it. Early indications of the program are promising. We're using our resources to help countries cultivate their ability to build their own future.
This approach points to the difference between aid and investment. Through aid, we supply what is needed to the people who need it -- be it sacks of rice, cartons of medicines, or millions of dollars to fill a budget shortfall. But through investment, we seek to break the cycle of dependence that aid can create by helping countries build their own institutions and their own capacity to deliver essential services. Aid chases need; investment chases opportunity.
This is not to say that the United States is abandoning aid. It is still a vital tool, especially as an emergency response. But through strategic investments in programs like the Millennium Challenge Corporation, we hope to one day put ourselves out of the aid business, because countries will no longer need this kind of help.
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