Mr. Obama calls it new US Global Development Policy and says it's the "first of its kind by an American administration."

"Put simply, the United States is changing the way we do business," he said at the summit of the U.N. Millennium Development Goals, an ambitious agenda world leaders set 10 years ago to tackle global poverty, which has grown amid the world economic recession.

The program has four approaches. One is changing the definition of development.

Second, the administration is changing how "the ultimate goal of development" is viewed.

The third pillar is putting an emphasis on "broad-based economic growth".

“The fourth pillar is insisting "on more responsibility -- from ourselves and from others," Mr. Obama said.

He added that the administration will work with Congress "to better match our investments with the priorities of our partner countries. Guided by the evidence, we will invest in programs that work and end those that don't."

He urged donor nations to honor commitments and developing countries to make the tough choices.

Upon taking office, Mr. Obama promised to double US foreign aid to US$50 million by 2012 and make US programmes, accused of being riddled with waste and fraud, more effective.