CEdward The use of "considered" is fine. It's the verb for "countries," not a modifier. The countries considered these advances critical.
However, I would strongly advise against trying to learn grammar from this question. It contains numerous errors and is stitched together from idioms that may be used "correctly" in GMAT terms, but are not deployed in a way that makes the meaning clear. For instance, "such as" is the correct idiom to introduce examples, but there is no previous noun that these items can all be examples of. None of these items (Manhattan Project, radar technology, new initiatives) are examples of an increase or of funding. The first and last are efforts and the second is the *result* of an effort, so the list is also not internally parallel.