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*	Promote the connection between trade and development. Trade 
policies can help developing countries strengthen property rights, 
competition, the rule of law, investment, the spread of knowledge, open 
societies, the efficient allocation of resources, and regional 
integration -- all leading to growth, opportunity, and confidence in 
developing countries. The United States is implementing The Africa 
Growth and Opportunity Act to provide market-access for nearly all goods 
produced in the 35 countries of sub-Saharan Africa. We will make more 
use of this act and its equivalent for the Caribbean Basin and continue 
to work with multilateral and regional institutions to help poorer 
countries take advantage of these opportunities. Beyond market access, 
the most important area where trade intersects with poverty is in public 
health. We will ensure that the WTO intellectual property rules are 
flexible enough to allow developing nations to gain access to critical 
medicines for extraordinary dangers like HIV/AIDS, tuberculosis, and 
malaria.

*	Enforce trade agreements and laws against unfair practices. 
Commerce depends on the rule of law; international trade depends on 
enforceable agreements. Our top priorities are to resolve ongoing 
disputes with the European Union, Canada, and Mexico and to make a 
global effort to address new technology, science, and health regulations 
that needlessly impede farm exports and improved agriculture. Laws 
against unfair trade practices are often abused, but the international 
community must be able to address genuine concerns about government 
subsidies and dumping. International industrial espionage which 
undermines fair competition must be detected and deterred.

*	Help domestic industries and workers adjust. There is a sound 
statutory framework for these transitional safeguards which we have used 
in the agricultural sector and which we are using this year to help the 
American steel industry. The benefits of free trade depend upon the 
enforcement of fair trading practices. These safeguards help ensure that 
the benefits of free trade do not come at the expense of American 
workers. Trade adjustment assistance will help workers adapt to the 
change and dynamism of open markets.

*	Protect the environment and workers. The United States must foster 
economic growth in ways that will provide a better life along with 
widening prosperity. We will incorporate labor and environmental 
concerns into U.S. trade negotiations, creating a healthy "network" 
between multilateral environmental agreements with the WTO, and use the 
International Labor Organization, trade preference programs, and trade 
talks to improve working conditions in conjunction with freer trade.

*	Enhance energy security. We will strengthen our own energy security 
and the shared prosperity of the global economy by working with our 
allies, trading partners, and energy producers to expand the sources and 
types of global energy supplied, especially in the Western Hemisphere, 
Africa, Central Asia, and the Caspian region. We will also continue to 
work with our partners to develop cleaner and more energy efficient 
technologies.


Economic growth should be accompanied by global efforts to stabilize 
greenhouse gas concentrations associated with this growth, containing 
them at a level that prevents dangerous human interference with the 
global climate. Our overall objective is to reduce America's greenhouse 
gas emissions relative to the size of our economy, cutting such 
emissions per unit of economic activity by 18 percent over the next 10 
years, by the year 2012. Our strategies for attaining this goal will be 
to:

*	remain committed to the basic U.N. Framework Convention for 
international cooperation;

*	obtain agreements with key industries to cut emissions of some of 
the most potent greenhouse gases and give transferable credits to 
companies that can show real cuts;

*	develop improved standards for measuring and registering emission 
reductions;

*	promote renewable energy production and clean coal technology, as 
well as nuclear power -- which produces no greenhouse gas emissions, 
while also improving fuel economy for U.S. cars and trucks;

*	increase spending on research and new conservation technologies, to 
a total of $4.5 billion -- the largest sum being spent on climate change 
by any country in the world and a $700 million increase over last year's 
budget; and

*	assist developing countries, especially the major greenhouse gas 
emitters such as China and India, so that they will have the tools and 
resources to join this effort and be able to grow along a cleaner and 
better path.


VII. Expand the Circle of Development by Opening Societies and Building 
the Infrastructure of Democracy


"In World War II we fought to make the world safer, then worked to 
rebuild it. As we wage war today to keep the world safe from terror, we 
must also work to make the world a better place for all its citizens."





President Bush
Washington, D.C. (Inter-American
Development Bank)
March 14, 2002



A world where some live in comfort and plenty, while half of the human 
race lives on less than $2 a day, is neither just nor stable. Including 
all of the world's poor in an expanding circle of development -- and 
opportunity -- is a moral imperative and one of the top priorities of 
U.S. international policy.

Decades of massive development assistance have failed to spur economic 
growth in the poorest countries. Worse, development aid has often served 
to prop up failed policies, relieving the pressure for reform and 
perpetuating misery. Results of aid are typically measured in dollars 
spent by donors, not in the rates of growth and poverty reduction 
achieved by recipients. These are the indicators of a failed strategy.

Working with other nations, the United States is confronting this 
failure. We forged a new consensus at the U.N. Conference on Financing 
for Development in Monterrey that the objectives of assistance -- and 
the strategies to achieve those objectives -- must change.

This Administration's goal is to help unleash the productive potential 
of individuals in all nations. Sustained growth and poverty reduction is 
impossible without the right national policies. Where governments have 
implemented real policy changes we will provide significant new levels 
of assistance. The United States and other developed countries should 
set an ambitious and specific target: to double the size of the world's 
poorest economies within a decade.

The United States Government will pursue these major strategies to 
achieve this goal:

*	Provide resources to aid countries that have met the challenge of 
national reform. We propose a 50 percent increase in the core 
development assistance given by the United States. While continuing our 
present programs, including humanitarian assistance based on need alone, 
these billions of new dollars will form a new Millennium Challenge 
Account for projects in countries whose governments rule justly, invest 
in their people, and encourage economic freedom. Governments must fight 
corruption, respect basic human rights, embrace the rule of law, invest 
in health care and education, follow responsible economic policies, and 
enable entrepreneurship. The Millennium Challenge Account will reward 
countries that have demonstrated real policy change and challenge those 
that have not to implement reforms.

*	Improve the effectiveness of the World Bank and other development 
banks in raising living standards. The United States is committed to a 
comprehensive reform agenda for making the World Bank and the other 
multilateral development banks more effective in improving the lives of 
the world's poor. We have reversed the downward trend in U.S. 
contributions and proposed an 18 percent increase in the U.S. 
contributions to the International Development Association (IDA) -- the 
World Bank's fund for the poorest countries -- and the African 
Development Fund. The key to raising living standards and reducing 
poverty around the world is increasing productivity growth, especially 
in the poorest countries. We will continue to press the multilateral 
development banks to focus on activities that increase economic 
productivity, such as improvements in education, health, rule of law, 
and private sector development. Every project, every loan, every grant 
must be judged by how much it will increase productivity growth in 
developing countries.

*	Insist upon measurable results to ensure that development 
assistance is actually making a difference in the lives of the world's 
poor. When it comes to economic development, what really matters is that 
more children are getting a better education, more people have access to 
health care and clean water, or more workers can find jobs to make a 
better future for their families. We have a moral obligation to measure 
the success of our development assistance by whether it is delivering 
results. For this reason, we will continue to demand that our own 
development assistance as well as assistance from the multilateral 
development banks has measurable goals and concrete benchmarks for 
achieving those goals. Thanks to U.S. leadership, the recent IDA 
replenishment agreement will establish a monitoring and evaluation 
system that measures recipient countries' progress. For the first time, 
donors can link a portion of their contributions to IDA to the 
achievement of actual development results, and part of the U.S. 
contribution is linked in this way. We will strive to make sure that the 
World Bank and other multilateral development banks build on this 
progress so that a focus on results is an integral part of everything 
that these institutions do.

*	Increase the amount of development assistance that is provided in 
the form of grants instead of loans. Greater use of results-based grants 
is the best way to help poor countries make productive investments, 
particularly in the social sectors, without saddling them with 
ever-larger debt burdens. As a result of U.S. leadership, the recent IDA 
agreement provided for significant increases in grant funding for the 
poorest countries for education, HIV/AIDS, health, nutrition, water, 
sanitation, and other human needs. Our goal is to build on that progress 
by increasing the use of grants at the other multilateral development 
banks. We will also challenge universities, nonprofits, and the private 
sector to match government efforts by using grants to support 
development projects that show results.

*	Open societies to commerce and investment. Trade and investment are 
the real engines of economic growth. Even if government aid increases, 
most money for development must come from trade, domestic capital, and 
foreign investment. An effective strategy must try to expand these flows 
as well. Free markets and free trade are key priorities of our national 
security strategy.

*	Secure public health. The scale of the public health crisis in poor 
countries is enormous. In countries afflicted by epidemics and pandemics 
like HIV/AIDS, malaria, and tuberculosis, growth and development will be 
threatened until these scourges can be contained. Resources from the 
developed world are necessary but will be effective only with honest 
governance, which supports prevention programs and provides effective 
local infrastructure. The United States has strongly backed the new 
global fund for HIV/AIDS organized by U.N. Secretary General Kofi Annan 
and its focus on combining prevention with a broad strategy for 
treatment and care. The United States already contributes more than 
twice as much money to such efforts as the next largest donor. If the 
global fund demonstrates its promise, we will be ready to give even more.

*	Emphasize education. Literacy and learning are the foundation of 
democracy and development. Only about 7 percent of World Bank resources 
are devoted to education. This proportion should grow. The United States 
will increase its own funding for education assistance by at least 20 
percent with an emphasis on improving basic education and teacher 
training in Africa. The United States can also bring information 
technology to these societies, many of whose education systems have been 
devastated by AIDS.

*	Continue to aid agricultural development. New technologies, 
including biotechnology, have enormous potential to improve crop yields 
in developing countries while using fewer pesticides and less water. 
Using sound science, the United States should help bring these benefits 
to the 800 million people, including 300 million children, who still 
suffer from hunger and malnutrition.


VIII. Develop Agendas for Cooperative Action with the Other Main Centers 
of Global Power


"We have our best chance since the rise of the nation-state in the 17th 
century to build a world where the great powers compete in peace instead 
of prepare for war."





President Bush
West Point, New York
June 1, 2002



America will implement its strategies by organizing coalitions -- as 
broad as practicable -- of states able and willing to promote a balance 
of power that favors freedom. Effective coalition leadership requires 
clear priorities, an appreciation of others' interests, and consistent 
consultations among partners with a spirit of humility.

There is little of lasting consequence that the United States can 
accomplish in the world without the sustained cooperation of its allies 
and friends in Canada and Europe. Europe is also the seat of two of the 
strongest and most able international institutions in the world: the 
North Atlantic Treaty Organization (NATO), which has, since its 
inception, been the fulcrum of transatlantic and inter-European 
security, and the European Union (EU), our partner in opening world 
trade.

The attacks of September 11 were also an attack on NATO, as NATO itself 
recognized when it invoked its Article V self-defense clause for the 
first time. NATO's core mission -- collective defense of the 
transatlantic alliance of democracies -- remains, but NATO must develop 
new structures and capabilities to carry out that mission under new 
circumstances. NATO must build a capability to field, at short notice, 
highly mobile, specially trained forces whenever they are needed to 
respond to a threat against any member of the alliance.

The alliance must be able to act wherever our interests are threatened, 
creating coalitions under NATO's own mandate, as well as contributing to 
mission-based coalitions. To achieve this, we must:

*	expand NATO's membership to those democratic nations willing and 
able to share the burden of defending and advancing our common interests;