Bush to announce nations eligible for US aid

US President George W

US President George W. Bush is expected to announce next week the countries that qualify for US aid under a new government program that provides cash in exchange for reforms.

The so-called Millennium Challenge Account, proposed by Mr Bush two years ago in Monterrey, Mexico, was set up to funnel aid directly to poor nations that embrace civil rights, root out corruption, open up their markets and adopt other policies favoured by Washington.

The board that administers the money - $1 billion in the current fiscal year - will meet on Thursday and is expected to approve the list of qualified countries, clearing the way for Mr Bush's announcement next week, the officials said.

Seventeen countries are likely to qualify, according to an analysis by the Center for Global Development.

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The countries are Benin, Cape Verde, Ghana, Lesotho, Madagascar, Mali, Mauritania, Senegal, Armenia, Bhutan, Mongolia, Sri Lanka, Vanuatu, Vietnam, Guyana, Honduras and Nicaragua.

Under the scheme, 90 per cent of this year's $1 billion in aid would go to the countries that qualify. The remaining 10 per cent would go to the runners-up to improve their chances of making the cut next year.