American empire and ‘excluded states’: the millennium challenge account and the shift to pre-emptive development

Abstract

In March 2002 President George W Bush announced the creation of what many insiders have heralded as a revolutionary development initiative: the Millennium Challenge Account (mca). The latter seeks to provide assistance to 79 of the world's poorest countries—many of which have been often equated with the term ‘failed states’—so that they may reap the benefits of neoliberal-led globalisation. One of the most novel, and coercive, features of this development compact is the ‘pre-emptive’ method in which it will administer aid. Under the mca, only countries that govern justly, invest in their people, and open their economies to foreign enterprise and entrepreneurship will qualify for funding. To this end the Bush administration has devised 16 eligibility criteria—ranging from civil liberties to ‘days to start a business’—that each country must successfully pass before receiving aid. Despite its impact on normalising, and thus legitimating, the tendency towards the privatisation of aid and militarisation of development, there has been very little critical work on the mca. This paper sets out to fill this gap in the literature by attempting to understand historically the mca as a moment of American empire.1In doing so, I suggest that, while the form of the mca represents an unabashed articulation of US-led imperialism vis-a`-vis the poorest regions in the South, the content of this allegedly novel strategy reflects the same goals and interests that underlie the neoliberal agenda, namely, that the path to increased growth and prosperity lies in countries' willingness and ability to adopt policies that promote economic freedom and the rule of law.