[Budget of the United States Government]
[VI. Investing in the Common Good: Program Performance in Federal Functions]
[14. International Affairs]
[From the U.S. Government Publishing Office, www.gpo.gov]


 
                       14.  INTERNATIONAL AFFAIRS

  ----------------------------------------------------------------------

                       Table 14-1.  FEDERAL RESOURCES IN SUPPORT OF INTERNATIONAL AFFAIRS
                                            (In millions of dollars)
----------------------------------------------------------------------------------------------------------------
                                                                               Estimate
               Function 150                   1998   -----------------------------------------------------------
                                             Actual     1999      2000      2001      2002      2003      2004
----------------------------------------------------------------------------------------------------------------
Spending:
  Discretionary Budget Authority \1\......    18,991    40,850    21,311    21,165    20,815    20,965    21,115
  Mandatory Outlays:
    Existing law..........................    -4,992    -4,355    -3,886    -3,680    -3,393    -3,150    -3,057
Credit Activity:
  Direct loan disbursements...............     2,346     4,002     1,759       N/A       N/A       N/A       N/A
  Guaranteed loans........................    12,369    13,376    12,983       N/A       N/A       N/A       N/A
Tax Expenditures:
  Existing law............................    11,040    12,410    12,265    13,100    14,075    15,160    16,280
  Proposed legislation....................  ........  ........      -310      -540      -570      -600      -630
----------------------------------------------------------------------------------------------------------------
N/A = Not available
\1\ 1999 includes $18.4 billion for the International Monetary Fund quote increase and the New Arrangements to
  Borrow.

  ----------------------------------------------------------------------
  The Administration proposes $21.3 billion for International Affairs 
programs in 2000. By fully funding these programs, the United States can 
continue to provide critical international leadership to accomplish key 
strategic goals, such as enhancing national security, fostering world-
wide economic growth, supporting the establishment and consolidation of 
democracy, and improving the global environment and addressing other key 
global issues. The State Department outlined these goals more fully in 
its September 1997 report, ``United States Strategic Plan for 
International Affairs.''
  In many cases, the performance goals that follow are from agency 
performance plans. If an agency has not submitted 2000 performance plan 
to OMB, the performance goals remain unchanged from the International 
Affairs chapter of the 1999 Budget. In addition to the goals identified 
below, agencies have established other performance goals for themselves 
to ensure that they fulfill their legislative mandates in ways that also 
contribute to U.S. national interests.

National Security

  U.S. security depends on active diplomacy, steps to resolve 
destabilizing regional conflicts, and vigorous efforts to reduce the 
continuing threat of weapons of mass destruction. The budget proposes 
the necessary funds to support the Middle East peace process following 
the signing of the Wye Memorandum. The budgt also provides funds to help 
the new NATO members--Poland, Hungary, the Czech Republic--and other 
East European nations. A strong, active United Nations enhances U.S. 
diplomatic efforts, and the budget proposes to fund assessed 
contributions to this and other international organizations, as well as 
annual assessed and voluntary peacekeeping contributions.
  Economic and reconstruction assistance and police training are 
critical to our effort to support the Dayton Accords on Bosnia, and 
funding under the FREEDOM Support Act helps foster the transition to 
market democracies in the former Soviet Union. For Kosovo, the budget 
includes resources to support observers to verify compliance by all 
parties and the training of a professional, local

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police force. Finally, the budget fully supports further progress on our 
efforts to control weapons of mass destruction by requesting $48 million 
under the restructured State Department which will incorporate the Arms 
Control and Disarmament Agency for programs that seek to reduce 
eliminate, or curb the spread of such weapons.
  Relevant agencies will meet the following performance goals in 2000:
   The State Department, in seeking to advance the Middle East 
          peace process, will achieve significant progress towards 
          fulfilling the goals of the Oslo Accord.
   The State Department will avert or defuse regional conflicts 
          where critical national interests are at stake through 
          bilateral U.S. assistance and U.N. peacekeeping activities.
   The State and Defense Departments will ensure that the armed 
          forces of NATO's ``candidate countries'' can operate in a 
          fully integrated manner with other NATO forces upon their 
          planned entry into NATO.
   The State and Defense Departments and the Agency for 
          International Development (USAID) will achieve significant 
          progress toward implementing the Dayton Accords in Bosnia.
   The State Department will achieve full compliance with, and 
          verification of, treaties regarding weapons of mass 
          destruction and, if necessary, combat suspected development 
          programs.

Economic Prosperity

  International affairs activities increase U.S. economic prosperity in 
several ways. First, the U.S. Trade Representative (USTR), supported by 
the State Department and other agencies, works to reduce barriers to 
trade in U.S. goods, services, and investments by negotiating new trade 
liberalizing agreements and strictly enforcing existing agreements.
  Second, the Export-Import Bank (Eximbank) and the Trade and 
Development Agency (TDA) provide grant and credit financing to correct 
market distortions that can put U.S. exports at a competitive 
disadvantage. The Overseas Private Investment Corporation (OPIC) 
provides investment insurance and financing for development projects in 
support of U.S. businesses large and small.
  Third, development assistance from the Multilateral Development Banks 
(MDBs) and USAID, along with debt reduction, help increase economic 
growth, openness, and market orientation in developing and transitioning 
countries, creating new markets for U.S. goods and services and reducing 
the economic causes of instability in these regions.
  Relevant agencies will meet the following performance goals in 2000:
   USTR will use the Third World Treaty Organization (WTO) 
          Ministerial Conference to set the negotiating agenda for the 
          round that begins in 2000; will conclude two or more pending 
          accession negotiations to the WTO; will negotiate cuts in 
          specific, identified barriers to U.S. and global trade; and 
          will effectively enforce international trade agreements.
   The Eximbank will develop new mechanisms to expand the 
          availability of financing for U.S. exports by pioneering joint 
          ventures with the private sector, as well as innovative 
          financing programs that will increase the Bank's support for 
          small and medium-sized exporters.
   OPIC will increase the amount of private U.S. investment that 
          supports American, foreign policy and development goals and 
          benefits the U.S. economy.
   TDA will increase, from 1998 levels, the ratio of TDA-
          supported exports to TDA expenditures and the percentage of 
          TDA projects that ultimately yield U.S. exports.
   USAID, through bilateral assistance, and the Treasury 
          Department, through its contributions to the MDBs, will 
          provide assistance that helps to increase the real annual per 
          capita GDP growth rate from 1998 levels in developing 
          countries.

American Citizens and U.S. Borders

  The State Department, through the U.S. passport office and the network 
of embassies and consulates overseas, helps and protects Americans who 
travel and reside abroad--

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most directly through various consular services, including citizenship 
documentation and help in emergencies. The Department also helps to 
control how immigrants and foreign visitors enter and remain in the U.S. 
by effectively and fairly administering U.S. immigration laws overseas 
and screening applicants, in order to deter illegal immigration and 
prevent terrorists, narcotics traffickers, and other criminals from 
entering the United States.
  The State Department will meet the following performance goals in 
2000:
   Improve U.S. passport security by issuing all passports 
          produced in the United States with a digitized passport photo.
   Complete the world-wide modernization of consular systems and 
          meet year 2000 requirements, thus contributing to border 
          security.

Law Enforcement

  The expansion and rising sophistication of transnational crime, 
international drug trafficking, and terrorism represent direct threats 
to our national security. The State Department has broad responsibility 
for federal law enforcement policy and progrm coordination in the 
foreign arena. The budget funds the State Department's diplomatic 
efforts to convince other countries to work cooperatively to address 
international criminal threats; it also funds assistance and training 
that helps other countries combat corruption, terrorism, and illegal 
narcotics, and provides the developing countries with economic 
alternatives to narcotics cultivation and export.
  The State Department, working with the Departments of Justice, the 
Treasury, and Defense, will meet the following performance goals in 
2000:
   Increase, from 1998 levels, the number of foreign governments 
          that enact and enforce legislation to combat corruption, money 
          laundering, and other transnational criminal activities.
   Reduce, from 1998 levels, the hectares of coca and opium 
          poppies being cultivated in producing countries.
   Increase, from 1998 levels, criminal justice section 
          training, providing equipment, and techinical assistance to 
          local and federal law enforcement organizations.

Democracy

  Advancing U.S. interests in the post-Cold War world often requires 
efforts to support democratic transitions, address human rights 
violations, and promote U.S. democratic values. The budget funds the 
State Department's diplomatic efforts that discourage other nations' 
interference with the basic democratic and human rights of their 
citizens. It also funds direct foreign assistance through USAID and 
other agencies that helps countries develop the institutions and legal 
structures for the transition to democracy. Finally, the budget funds 
exchange and training programs of the State Department, as well as 
international broadcasting programs that seek to spread U.S. democratic 
values throughout the world and ensure that Americans understand and 
value the peoples and cultures of other nations.
  Relevant agencies will meet the following performance goals for 2000:
   USAID, State Department public diplomacy programs, and 
          international broadcasting programs will provide assistance 
          that lead to the improvement of Freedom House ratings of 
          countries in which the United States is assisting the 
          transition to democracy.
   As a result of State Department diplomacy and direct 
          assistance, the instances of human rights abuses as reported 
          by the State Department in the annual U.S. Report on Human 
          Rights will be reduced from 1998 levels.
   Public diplomacy activities will increase, from 1998 levels, 
          the support for democracy, democratic institutions, and human 
          rights in selected countries that participate in the programs, 
          as measured through polling.

Humanitarian Response

  U.S. values demand that we help alleviate human suffering from foreign 
crises, whether man-made or natural, such as Hurricane

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Mitch, even in cases with no direct threat to U.S. security interests. 
The budget provides the necessary funds to address and, where possible, 
try to prevent, humanitarian crises through USAID's Foreign Disaster 
Assistance and Transition Initiatives programs, through the State 
Department's Migration and Refugee Assistance program, and through food 
aid provided under ``Public Law 480'' authorities. The budget also funds 
U.S. bilateral demining efforts to address the growing humanitarian 
crisis caused by landmines in areas of former conflict.
  Relevant agencies will meet the following performance goals for 2000:
   USAID, in conjunction with other public and private donors, 
          will provide humanitarian assistance that will maintain the 
          nutritional status of children aged five or under living in 
          regions affected by humanitarian emergencies.
   The State Department will reduce refugee populations, from 
          1998 levels, through U.S.-sponsored integration, repatriation, 
          and resettlement activities.
   The State Department will increase, from 1998 levels, the 
          amount of land returned to productive economic activity by 
          clearing mines and other unexploded ordnance. Over time, this 
          will also result in a reduction of innocent casualties.

Global Issues

  The global problems of environmental degradation, population growth, 
and the spread of communicable diseases directly affect future U.S. 
security and prosperity. The State Department's negotiation of the Kyoto 
global climate change treaty and USAID's five-year, $1 billion global 
climate change assistance effort will reduce the threat of this global 
problem. Funding of current commitments and arrears to the Global 
Environment Facility remains critical to the effort of reducing 
environmental degradation.
  Similarly, U.S. leadership and U.S. bilateral assistance efforts and 
U.S. contributions to multilateral organizations are critical to reduce 
the pressures of illegal immigration on the U.S. economy, and help 
alleviate the causes of regional conflict. U.S. support, mainly through 
USAID both for bilateral and multilateral activities also reduces the 
global threat of AIDS and other communicable diseases.
  Finally, the volunteer programs of the Peace Corps serve U.S. national 
interests by promoting mutual understanding between Americans and the 
people of developing nations and providing technical assistance to 
interested countries.
  Relevant agencies will meet the following performance goals in 2000:
   The State Department and USAID, working with the 
          Environmental Protection Agency and with other bilateral and 
          multilateral donors, through diplomacy and foreign assistance 
          will slow the rate of increase, from 1998 levels, of climate 
          change gas emissions among key developing nation emitters.
   USAID will provide assistance in conjunction with other 
          donors that will cut, from 1998 levels, the total fertility 
          rates in developing countries.
   USAID, working with the Department of Health and Human 
          Services and with other donors, will provide assistance that 
          will reduce, from 1998 levels, the infant mortality rate and 
          the rate of new cases of AIDS, malaria, tuberculosis and other 
          communicable diseases in developing countries.
   The Peace Corps will provide opportunities for 4200 Americans 
          in 2000 to enter service as new volunteers, assisting 
          countries with their development needs and increasing cultural 
          awareness.