[Budget of the United States Government]
[V. Preparing For the 21st Century]
[10. Advancing United States Leadership in the World]
[From the U.S. Government Publishing Office, www.gpo.gov]
10. ADVANCING UNITED STATES LEADERSHIP IN THE WORLD
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``If the history of this American century has taught us anything, it is that we will either work to shape
events, or we will be shaped by them. We cannot be partly in the world. We cannot lead in fits and starts or
only when we believe it suits our short-term interests. We must lead boldly, consistently, without reservation
...Our security and prosperity depend upon our willingness to be involved in the world.''
President Clinton
August 1998
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As the era that has been labeled the American Century comes to a
close, the role of the United States in one significant way remains
unchanged. Today, America is the world's sole remaining superpower and,
therefore, still has its own set of unique obligations and
responsibilities. The world in many ways is safer than in the past, as
democracy and free markets increasingly prevail, but we cannot afford to
be complacent. Threats to our security still require our vigilance, and
opportunities to promote peace and economic well-being demand our
leadership.
America must remain a leader for peace, freedom, and security--and a
bulwark against the forces that would undermine them. American diplomacy
helped restore momentum in the Middle East peace process at the Wye
River meeting and helped achieve the ratification of the Good Friday
Accord, which brought an end to 30 years of turmoil for the people of
Northern Ireland.
While progress in making peace offers cause for optimism, there are
real and growing threats to our national security. The terrorist attacks
against two U.S. embassies in East Africa last year--which killed
hundreds of people, including 12 Americans--are a stark reminder that we
need to protect our citizens and to combat our enemies. Our security and
the stability of the international order is also threatened by the
proliferation of weapons of mass destruction and their means of
delivery, international terrorism and crime, narcotics, and
environmental degradation.
Nations and their economies are increasingly interdependent, due in
large part to the explosion of communications technology. While this
interdependence can help foster international trade and cultural
understanding, and contribute to the foundation for peace, there are
also fundamental risks. Last year, disruptions in the Russian and
several Asian economies and the threat to Brazil's economy demonstrated
the world-wide impact of crises in major economies.
In order to ensure that America maintains its role as world leader
and responds to these needs in a complex and crucial time, the budget
includes resources to promote peace in troubled areas, to provide
enhanced security for our diplomats abroad, to fund activities to combat
weapons of mass destruction, to stabilize the international economy, to
promote trade, and to respond to the needs of our neighbors and others
who face disaster.
American diplomacy is the tool of American international leadership
in these many important issues, and it depends on strong international
affairs programs. In 1999, the Administration and Congress worked
successfully to build bipartisan support for an increase in
international affairs spending.
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Congress appropriated $14.5 billion for the U.S. share of the
International Monetary Fund (IMF) quota increase and $3.5 billion for
the U.S. share of the New Arrangements to Borrow. These increases will
allow the IMF the necessary resources to support economic reform and
restructuring around the world, thereby helping to protect U.S.
prosperity. Congress also appropriated $1.8 billion in emergency
funding, largely to meet the urgent needs of protecting American
personnel and facilities abroad from terrorist attacks.
Despite significant progress on international problems last year,
there is an unfinished and growing set of issues which are critical to
U.S. interests. The Administration and Congress must continue efforts to
promote peace and stand with those working to build it and to work for
freedom and security. We must continue to strengthen our alliances and
partnerships in Europe and Asia, the foundation for America's security.
Finally, we must work to deepen democracy around the world--the best
long-term investment we can make in peace and stability.
Although American diplomacy has made great strides to advance the
peace process in the Middle East and in the Balkans, there is still an
enormous amount of hard work ahead. Collaboration between the
Administration and Congress is essential to give peace in those regions
the opportunity it deserves. Trade has been essential to the current
economic expansion, and Congress should enact legislation promoting
trade with Africa and the Caribbean Basin. Such trade initiatives can
help bolster the growth of countries undertaking desirable free-market
reforms, thereby helping the American economy by increasing markets for
our own exports.
In providing $21.3 billion for international affairs programs, the
budget proposes that the United States continue to actively meet the
role and responsibility of world leadership (see Table 10-1). The budget
helps resolve unfinished business from past years, addresses the many
new crises facing the world, and targets funding increases to the most
effective programs to achieve foreign policy objectives, rejecting
outmoded activities and poorly-performing projects. This will strengthen
U.S. leadership and benefit the American people, while costing less than
one percent of the Federal budget.
Protecting American Security
Facility Vulnerability: The bombings of the U.S. embassies in Kenya
and Tanzania were evil acts of terror that took the lives of hundreds of
innocent people, including 12 Americans. The bombings highlight the
dangers faced daily by Americans and foreign national employees who work
abroad in U.S. Government facilities. A significant step to address
vulnerability in our diplomatic facilities took place with enactment of
emergency security funding in 1999. The budget proposes an increase to
the State Department's operating budget in 2000 to ensure the continued
protection of American embassies, consulates and other facilities, and
the valuable employees who work there. The Administration will continue
to examine the vulnerabilities and requirements for U.S. Government
staff overseas through a review of the number, size, and composition of
U.S. overseas missions and future security requirements. To address
further security needs, the budget includes a request for $3 billion in
advance appropriations for a new multi-year security construction
program to replace inadequate overseas facilities. The Administration
will continue to work with Congress in a bipartisan manner to address
the continuing challenge of making our overseas posts secure.
The New Transnational Threats: Another fundamental goal, and an
increasing focus of our diplomacy, is meeting the new transnational
threats to U.S. and global security--the proliferation of weapons of
mass destruction, drug trafficking, and the spread of crime and
terrorism on an international scale. In 1997, the Administration sought
and obtained Senate ratification of the Chemical Weapons Convention,
which will begin imposing controls on a class of destructive weapons not
well regulated in the past. However, the Senate has not yet ratified the
Comprehensive Nuclear Test Ban Treaty (CTBT), which it has had since
September 1997, and which is central to national security interests.
U.S. diplomacy and law enforcement are playing a key role in stemming
the spread of weapons of mass destruction to outlaw states such as
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Table 10-1. INTERNATIONAL DISCRETIONARY PROGRAMS
(Budget authority, dollar amounts in millions)
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Dollar Percent
1998 1999 2000 Change: Change:
Actual Estimate Proposed 1999 to 1999 to
2000 2000
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International development and humanitarian assistance 1, 2.... 6,797 6,966 7,606 +639 +9%
International security assistance \2\......................... 6,102 6,022 6,232 +210 +3%
Conduct of foreign affairs/foreign information and exchange
programs 1, 2................................................ 4,966 4,904 5,478 +573 +12%
International financial programs \3\.......................... 666 750 881 +131 +17%
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Subtotal, International discretionary programs................ 18,531 18,643 20,196 +1,554 +8%
Multilateral Development Bank arrears....................... 360 539 169 -370 -69%
International Organization arrears.......................... 100 475 446 -29 -6%
Enacted embassy security and other emergency items.......... ........ 1,900 ........ ........ ........
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Subtotal, including arrears and enacted emergency
appropriations............................................... 18,991 21,557 20,811 -746 -3%
Proposed Wye River supplemental............................... ........ 900 500 NA NA
=================================================
Total, including proposed Wye River supplemental.............. 18,991 22,457 21,311 -1,146 -5%
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NA = Not applicable.
\1\ Excluding arrears payments.
\2\ Excluding 1999 embassy security and other emergency appropriations.
\3\ Excluding 1999 appropriations for the International Monetary Fund.
Libya, Iraq, Iran, Syria, and North Korea. In addition, U.S. support
for such organizations as the International Atomic Energy Agency, the
CTBT Preparatory Commission, and the Korean Peninsula Energy
Development Organization is critical to help prevent the spread of
dangerous nuclear weapons.--------------------------------------------
U.S. bilateral assistance programs are essential to efforts attacking
other transnational problems. America's international counter-narcotics
efforts are making continued progress in drug-producing countries. Along
with the additional funding of $233 million in enacted 1999 emergency
appropriations, the budget proposes $295 million to enable the United
States to intensify its efforts to curb drug production in the Andean
countries and to fight international crime.
The Newly Independent States (NIS): The transition to market
democracies in the NIS remains vital to U.S. national security. Russia
remains the key to overall progress in the region. The budget proposes
$1.03 billion for assistance to the NIS. The pace of that transition
continues to be uneven, and last year there were serious economic
setbacks for Russia. Although these nations have embraced free
elections, there is a lack of political consensus in support of economic
reforms, which makes prospects for sustained economic growth dubious.
The United States and Russia share a mutual goal of preventing the
proliferation of expertise and technology related to weapons of mass
destruction (WMD). Current economic conditions increase the risk of
proliferation because weapons scientists and technicians are unemployed
or unpaid, and guards at facilities and borders are untrained and
poorly-equipped. The budget supports significant increases in funding
for State Department
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programs from $41 million last year to $251 million to address this
concern. In addition, the Department of Defense Cooperative Threat
Reduction program is funded at $476 million and the Department of Energy
WMD programs in the NIS are funded at $276 million (see Table 10-2).
In addition to this enhanced emphasis on WMD, the budget includes a
renewed emphasis on our Partnership for Freedom programs, which work
directly with the private sector and nongovernmental organizations,
develop partnerships between U.S. and NIS institutions, increase
exchanges, and help local governments increase trade and investment.
Promoting Peace Abroad
Peace in the Middle East: The United States remains committed to a
comprehensive peace in the Middle East. America continues to play a
leadership role in this effort. The Wye River Memorandum, signed in
October 1998, is an important milestone in this process. The effective
implementation of this Memorandum should restore positive momentum to
the peace process. The Wye Memorandum provides among other things for
enhanced security steps by the Palestinians, improved security
cooperation between Israelis and Palestinians, further redeployments of
Israeli forces in the West Bank, the opening of the Gaza airport, and
creation of a safe passage between Gaza and the West Bank. The budget
proposes $5.2 billion for assistance to sustain the Middle East peace
process.
In addition, the Administration proposes a $1.9 billion economic and
military assistance package to help meet priority needs arising from the
Wye Memorandum. This is comprised of $900 million in 1999 supplemental
budget authority (to be fully offset with an equal reduction of budget
authority) and $500 million in annual advance appropriations in 2000 and
2001. Supplemental Economic Support Fund (ESF) resources will help meet
the Palestinians' economic development needs in the West Bank and Gaza,
and strengthen democratic institutions. Supplemental Foreign Military
Financing (FMF) funding for Israel will help Israel offset some of the
costs of redeploying its forces and enable it to meet strategic defense
requirements. Additional FMF funding for Jordan will allow it to
maintain the operational capabilities of its forces and additional ESF
resources for Jordan will support further economic development.
Central and Eastern Europe: The transition to democracy and free
markets in Central and Eastern Europe is advancing rapidly. Countries
are moving to join the European Union and the World Trade Organization.
Poland, Hungary, and the Czech Republic are joining NATO. Economic
growth is widespread, and respect for human rights is growing. U.S. and
other international support has been a critical factor in the pace of
that transition. In certain nations, the success is evident: democracy
has taken hold firmly while free markets prevail. At this time,
Lithuania and Poland join the Czech Republic, Slovenia, Latvia, and
Hungary as states that no longer need direct U.S. assistance.
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Table 10-2. THREAT REDUCTION ASSISTANCE IN THE NIS
(Budget authority, dollar amounts in millions)
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Dollar Percent
1998 1999 2000 Change: Change:
Actual Estimate Proposed 1999 to 1999 to
2000 2000
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Department of Defense............................................. 382 440 476 +36 +8%
Department of Energy.............................................. 212 237 276 +39 +16%
Department of State............................................... 20 41 251 +210 +512%
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Total........................................................... 614 718 1,003 +285 +40%
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The success of these northern-tier countries of the region will be
used to foster similar results in the southern tier where the transition
has not been as rapid. Reform minded governments in Bulgaria, Macedonia,
and Romania continue to work toward creating free markets and democratic
governance. However, challenges remain in the rest of the Balkans.
Substantial assistance will continue to enable countries to participate
in the Partnership for Peace programs, thereby improving mutual
understanding and enhancing the interoperability of regional military
forces with NATO. The budget proposes $393 million in economic aid for
Eastern Europe and the Baltic States, primarily focused on the southern
tier.
Bosnia: $175 million of the economic aid program would support the
U.S. commitment to see the Dayton Accords fully implemented in Bosnia.
U.S. assistance will help displaced persons and refugees return home;
multi-ethnic communities rebuild; numerous leaders embrace the economic
reforms necessary to expand opportunities and sustain economic growth;
and governments to continue restructuring their police forces in order
to provide all citizens with a secure environment. American troops
remain in the region and our assistance programs are designed to
complement their work and build on the stability created by their
presence.
Kosovo: In Kosovo, international diplomatic efforts backed by U.S.
and allied military capabilities have helped increase stability in this
troubled region. However, the ability to foster a peaceful transition
that protects the rights of all citizens in that part of Yugoslavia
continues to hang in the balance. U.S. humanitarian assistance has
helped alleviate suffering, but we must work with our allies to help
create a sustainable peace. The budget includes $46 million for an
observer force to verify compliance by all parties and to support the
training of a professional, ethnically representational, local police
force that protects the rights of all citizens. In addition, $50 million
is included in the budget for the U.S. contribution to an international
civil reconstruction effort.
Hurricane Mitch: In 1998, Hurricane Mitch, the most destructive
hurricane in recent history, caused over $10 billion in damage to
Central America. The United States immediately stepped up to the massive
relief and reconstruction needs caused by this unprecedented disaster,
pledging over $500 million. However, there is much more that needs to be
done to help these neighboring countries recover from this devastation,
and funding is needed urgently. Therefore, the President will work with
the Congress in a bipartisan effort to obtain 1999 supplemental funds to
address the damage caused by Hurricane Mitch, as well as that caused in
the Caribbean by Hurricane Georges.
Leading the International Community
Following World War II, the United States assumed a unique leadership
role in building international institutions to bring the world's nations
together to meet mutual security, economic, and humanitarian needs.
America sponsored and provided significant funding for the UN, NATO, the
IMF, and the World Bank, along with other specialized regional security
and financial institutions that became the foundation of international
cooperation during the Cold War and the post-Cold War period.
To ensure financial stability for this international community,
members of the international organizations (IOs) entered into treaties
committing them to pay specified shares of IO budgets. Congress ratified
these agreements, making them binding on the United States. For the
Multilateral Development Banks (MDBs) which include the World Bank, its
regional development bank partners, and the Global Environment Facility
(GEF), the United States and other developed countries make firm
commitments to regular replenishment of their resources. Replenishments
are subject to the congressional authorization and appropriations
processes.
By 1997, America's leadership in this international institutional
network had seriously eroded due to past legislative action that reduced
funding for our assessments and commitments. The resulting arrears to
the IOs had accumulated to almost $1.5 billion. Although the
Administration and Congress developed bipartisan support for authorizing
legislation in 1997, and again in 1998, to clear many of the assessed
arrears over
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three years in return for specified IO reforms, the legislation was
never enacted.
Congress did pass appropriations of $100 million in 1998 and $475
million in 1999, subject to enacting authorization legislation and
certain other conditions. The budget proposes that the Administration
and Congress work together once again to reach agreement on paying the
UN and related IO arrears. The budget includes the third-year
installment of arrears funding of $446 million and seeks $1.198 billion
to meet regular assessments to the IO's and for UN peacekeeping
operations.
Stabilizing the International Economy
As the world becomes more economically integrated, the smooth
functioning of its monetary system becomes increasingly critical to
every nation's economy. The severe disruptions in the Russian and
several Asian economies and the threat to Brazil's economy in 1998
demonstrated the world-wide impact of crises in major economies. Despite
its size and strength, even the U.S. economy is not immune and could
suffer if measures were not taken to keep global economic crises in
check. It is exactly these kind of disruptions that the International
Financial Institutions (the IMF, the World Bank, and the other MDBs)
were created to address, and, thanks in part to the bipartisan effort to
increase the resources available for the IMF last year, these
institutions have already begun to provide the loans needed for
Indonesia, Brazil, and the other countries most affected, so that they
may begin the long and difficult recovery process.
Multilateral Development Banks (MDBs): There has been progress in the
past two budgets, with Congress funding most of U.S. arrears to the
MDBs, leaving $310 million unfunded at present. This advancement, much
improved since 1997, when arrears totaled nearly $862 million, enabled
the Administration to engage other donors and gain agreement on
important new policy measures during new replenishment negotiations this
past year for the International Development Association, the African
Development Fund, and the Inter-American Development Bank. The budget
also proposes $168 million to continue the planned payment of MDB and
new GEF arrears and $1.2 billion to pay current commitments to these
institutions, which provide most of the assistance to poor countries
around the world that are undertaking promising economic reforms. During
the Clinton Administration, U.S. commitments for all the MDBs have been
cut by 40 percent from the levels in the mid-1990s.
International Debt Policy: In providing $120 million, the United
States will promote economic and environmental reform for countries in
support of the Tropical Forest Conservation Act of 1998 and help defray
the cost of debt relief by contributing to the Heavily Indebted Poor
Country Initiative Trust Fund. Furthermore, the United States will
continue its efforts to stimulate economic growth for the world's poorer
countries by participating in the multilateral Paris Club debt
reductions and providing bilateral debt relief as part of the
President's Africa Initiative.
Supporting International Development and Addressing International
Disasters
Development assistance, through the MDBs and bilaterally through the
U.S. Agency for International Development (USAID), funds projects which
create the conditions for economic growth, stable democracies, improved
human health, and basic education. Our ongoing commitment to provide
assistance to the poorest countries serves long-term U.S. interests and
diminishes the need for short-term crisis intervention.
Assistance to Africa: The budget proposes $828 million for Africa--an
increase of almost 10 percent--meeting the President's goal of
increasing support for Africa to historically high levels. These levels
of assistance recognize the increased progress towards reform and
economic growth that is being made by a number of African nations. The
assistance programs funded at current or increased levels will include
Presidential initiatives on food security, education, and trade and
investment. The budget also includes increased support for programs
aimed at reducing conflict, promoting regional peacekeeping and
encouraging democracy, as well as enactment of the President's trade
package for Africa.
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USAID's Development Assistance Programs: The budget proposes $1.8
billion for USAID's development assistance programs, which provide
funding to 51 countries and 12 regional programs in Africa, Asia, and
Latin America. In Asia, USAID programs will provide an important element
of the U.S. Government response to the challenges of the economic
collapse and an inadequate social safety net, and the opportunity to
support genuine democratization. In Latin America, the continuing
assistance provided in the budget is critical to meeting the long-term
needs arising from the devastation of Hurricane Mitch.
Humanitarian Assistance: Unfortunately, many countries face crises
which impede their development, both from natural disasters--so clearly
illustrated by the impact of Hurricane Mitch--and from ongoing civil
conflicts. The budget proposes $1.7 billion for the humanitarian
assistance programs of the Department of State and USAID. The Department
of State's refugee program provides for care and maintenance of refugees
abroad and resettlement assistance to those refugees admitted to the
United States. USAID, through its Office of Foreign Disaster Assistance,
provides for the immediate needs of victims of natural and manmade
disasters, including internally displaced persons. In addition to direct
relief, USAID also works to improve the ability of poor countries to
deal with disasters through its prevention and mitigation programs and
programs aimed at helping countries move from conflict to peace. USAID
also provides food aid for vulnerable populations through the Food for
Peace program.
Environment and Population Growth: USAID development assistance and
U.S. contributions to international efforts, such as the GEF and
Montreal Protocol, support large and successful programs to improve the
environment and reduce population growth. The budget also continues to
fund USAID's multi-year global climate change initiative. The United
States is the recognized world leader in promoting safe, effective
family planning projects and the budget request continues to fund
significant levels of U.S. assistance for these programs.
Peace Corps: The Peace Corps promotes better understanding among
nations through its volunteers who have served as unofficial ambassadors
to the developing world. The American people strongly support the
program. The budget proposes $270 million to enable the agency to
continue increasing the number of volunteers abroad--with the goal of
building towards 10,000 volunteers by early in the next century.
Increasing American Prosperity Through Trade
The Administration remains committed to opening global markets and
integrating the global economic system, which has become a key element
of continuing economic prosperity here at home. This goal is
increasingly central to America's diplomatic activities. The
Administration is helping to lay the groundwork for sustained, non-
inflationary growth into the next century by implementing the North
American Free Trade Agreement and the multilateral trade agreements
concluded during the Uruguay Round.
Export Promotion Initiative: After years of double-digit growth, U.S.
manufacturing exports slowed in 1998 as a result of global economic
problems, and that led to thousands of worker layoffs. Because millions
of American jobs depend on foreign exports, we must help U.S.
manufacturers find new markets and attract new customers for our goods
overseas. Toward that end, the budget includes a $108 million multi-
agency initiative to spur additional U.S. exports. First, the initiative
boosts funding by 10 percent--or $81 million--for the Export-Import
Bank, which helps U.S. exporters by providing prudent financing for
customers in developing countries when private funds are not available
and by strategically leveling the playing field against aggressive,
foreign export-credit subsidies. With the additional funds, the Bank can
keep U.S. products--from aircraft parts to capital equipment to
environmental technology--flowing to emerging markets where commercial
banks have withdrawn. Second, the Trade and Development Agency receives
an additional $4 million to fund feasibility studies that enable U.S.
companies to participate in major export-generating infrastructure
projects overseas. Third, the initiative provides $14 million for the De
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partment of Commerce's International Trade Administration (ITA) to
increase resources for export advocacy in key markets and for delivery
of export assistance services to America's 350,000 small manufacturers.
Finally, the initiative provides $9 million for ITA and Commerce's
National Institute of Standards and Technology (NIST) to expand U.S.
efforts to help developing countries establish the legal and
institutional framework needed for a commercial infrastructure making it
easier and cheaper for U.S. firms to export.
Free and Fair Trade: The Administration will continue to press
forward with open trade. At this time of economic fragility in so many
regions, it is important to continue to pursue open markets. The budget
proposes significant increases for trade negotiators to pursue an open,
fair, rules-based trading system which ensures that spirited economic
competition among nations does not become a race to the bottom in
environmental protections, consumer protections, or labor standards.
The Administration also will propose to give expanded trade benefits
for two years to the eligible countries under the Caribbean Basin
Initiative, and will propose special trade benefits on a permanent basis
to African countries that are reforming their economies, as part of a
larger trade and investment initiative for Africa. In addition, the
Administration will propose a one-year extension of the Generalized
System of Preferences beyond its current expiration date of June 30,
1999, in order to continue the reduced tariffs on many imports from
developing countries provided for by this system.
Additional Trade Activities: The Trade Promotion Coordinating
Committee (TPCC) is currently focusing on several key strategic
objectives in order to provide more effective and better coordinated
trade promotion programs. The TPCC works to promote exporter awareness
of the benefits of trade, to respond effectively to the Asian crisis.
The TPCC is also working to improve trade in important economic markets
around the world.
The Administration also strongly supports the reauthorization of the
Overseas Private Investment Corporation which has been an important part
of trade and investment initiatives through its investment insurance and
finance programs. In addition, the budget provides an 18-percent
increase, to $20 million, for the Commerce Department's Market Access
and Compliance Unit, whose members monitor trade agreements and identify
compliance problems.
Conducting Effective Diplomacy
Effective diplomacy is the foundation of our ability to meet foreign
policy goals. The budget supports a strong U.S. presence at over 250
embassies and other posts overseas, promoting U.S. interests abroad and
protecting and serving Americans by providing consular services. The
work of the Department of State and U.S. missions supports the goals and
initiatives of American foreign policy, and anticipates and helps to
prevent threats to our national security. This work has expanded
considerably in recent years to include combating threats from
terrorism, proliferation of weapons of mass destruction, nuclear
smuggling, international crime, and narcotics trafficking. The overseas
posts also serve as the administrative platform for the many other U.S.
agencies with personnel abroad, from USAID to the Departments of
Defense, Justice, and the Treasury.
Foreign Affairs Reorganization: Enactment of the Foreign Affairs
Reform and Restructuring Act of 1998 provided the President the
authority to fundamentally restructure foreign affairs agencies. The
reorganization will put matters of international arms control,
sustainable development policy, and public diplomacy at the heart of our
foreign policy within a reinvented Department of State.
The reorganization will integrate the Arms Control and Disarmament
Agency (ACDA) and the non-broadcasting portion of the U.S. Information
Agency (USIA) as well as certain limited functions of USAID into the
State Department. The Broadcasting Board of Governors, which oversees
all governmental non-military broadcasting abroad and is currently part
of USIA, will become an independent Federal establishment.
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Diplomatic and Consular Operations: The budget proposes $3.6 billion
in 2000 for the State Department, including public diplomacy and arms
control activities. Of this total, $0.7 billion is proposed for
continuing public diplomacy activities (formerly USIA) and $48 million
is for arms control and nonproliferation activities (formerly ACDA).
This funding level will maintain the Department's world-wide operations,
continue efforts to upgrade information technology and communications
systems, and accommodate increased security and facility requirements at
posts abroad. The major increases proposed in the budget provide for
security and facility enhancements that will allow foreign policy
professionals abroad to do their jobs in a safer environment. The budget
requests $3 billion in advance appropriations to fund the construction
of secure embassies and posts around the world. The Administration will
pursue these enhancements through a capital construction strategy that
will effectively and efficiently meet America's security needs.
USAID Operating Expenses: The budget proposes $508 million for USAID
operating expenses. The largest portion of this increase over 1999 ($12
million) will provide USAID with the resources it needs to continue to
improve its information technology and financial management
capabilities. The resources will also allow USAID to maintain its
overseas presence in key developing countries, although it will require
USAID to continue its successful reinvention efforts in order to meet
increased program delivery requirements without increasing overseas
staff or expenses. The budget also accommodates the shift of security
functions from the USAID Inspector General to USAID operating expenses,
as required by the 1999 Foreign Operations Appropriations Act.