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

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                           12.  INTERNATIONAL AFFAIRS

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                           Table 12-1.  Federal Resources in Support of International Affairs
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 150                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........    41,509    23,910    22,755    23,193    23,500    24,076    24,569
      Mandatory Outlays:
        Existing law..........................    -4,276    -4,769    -4,089    -3,735    -3,735    -3,689    -3,709
    Credit Activity:
      Direct loan disbursements...............     2,781     1,813     1,419       N/A       N/A       N/A       N/A
      Guaranteed loans........................     9,513    12,754    12,467       N/A       N/A       N/A       N/A
    Tax Expenditures:
      Existing law............................    14,415    15,595    16,685    17,015    17,615    18,790    20,065
      Proposed legislation....................  ........        80       168       102        46       -10       -27
    ----------------------------------------------------------------------------------------------------------------
    N/A = Not available.

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       The Administration proposes $22.8 billion for International Affairs
    programs in 2001. 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, improving the global environment and addressing other key
    global issues such as dealing with AIDS.
       In many cases, the performance goals that follow are from agency
    performance plans. 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. 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 a new, democratic society in Kosovo
    and funding under the FREEDOM Support Act helps foster the transition to
    market democracies in the former Soviet Union.
       The State Department will implement a broad program of security
    enhancements in response to continued threats of terrorist bombings and
    related violence directed at U.S. diplomatic and consular facilities
    overseas in 2001. Achieving global upgrades and maintaining that
    readiness at the Department's overseas posts poses a significant
    management challenge. The budget also includes significant investments
    in overseas facilities to ensure continued protection of U.S. Government
    employees. Long-range capital planning, including a review of how the
    U.S. Government staffs and manages overseas facilities, will ensure that
    these investments meet cost, schedule, and performance goals of the
    program.
       Relevant agencies will meet the following goals in 2001:

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       The State Department will avert or defuse regional conflicts
              where critical national interests are at stake through
              bilateral U.S. assistance and UN 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 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 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. business 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. This creates new markets for U.S. goods and services and
    reducing the economic cause of instability in these regions.
       Relevant agencies will meet the following performance goals in 2001:
       USTR will work with parties to the World Treaty Organization
              (WTO) to launch an inclusive new negotiating round that covers
              trade in agriculture and services, achieves further effective
              market access liberalization, and strengthens and extends WTO
              rules; negotiate cuts in specific identified barriers to U.S.
              and global trade; and effectively enforce international trade
              agreements.
       The Export-Import Bank 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, from 1999 levels, 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 2000 levels, the ratio of TDA-
              supported exports to TDA expenditures and the percentage of
              TDA projects that ultimately yield U.S. exports.
       U.S. Agency for International Development (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
              1999 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-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 United States 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 goal in
    2001:

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       Improve U.S. passport security by issuing all passports
              produced in the United States with a digitized passport photo.

    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 program 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 add distance 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
    2001:
       Increase, from 1999 levels, the number of foreign governments
              that enact and enforce legislation to combat corruption, money
              laundering, and other transnational criminal activities.
       Reduce from 1999 levels, the hectares of coca and opium
              poppies being cultivated in producing countries.
       Increase, from 1999, levels, criminal justice section
              training, providing equipment, and technical assistance to
              local and federal law enforcement organizations.

    Democracy

       Advancing U.S. interest 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 efforts that are intended to discourage other nations'
    interference with basic democratic activities, 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 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 2001:
       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 1999 levels.
       Public diplomacy activities will increase, from 1999 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 crisis whether man-made or natural, 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, the State Department's Migration and Refugee
    Assistance program, and 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 land mines in areas of
    former conflict.
       Relevant agencies will meet the following performance goals for 2001:
       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.

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       The State Department will reduce refugee populations, from
              1999 levels, through U.S.-sponsored integration, repatriation,
              and resettlement activities.
       The State Department will increase, from 1999 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. Increased funding for international family
    planning efforts, prevention of the global spread of HIV/AIDS, and
    protection of the world's dwindling tropical forests, represent new or
    expanded initiatives to address the causes of these problems. In
    addition, continued funding of bilateral efforts to address global
    climate change in developing countries, as well as funding of current
    commitments and arrears to the Global Environment Facility, remain
    critical to the effort to reduce global environmental degradation.
       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 2001:
       USAID, working with the Departments of Health and Human
              Services, Defense and Labor, and with other donors and
              national governments, will provide assistance that will
              reduce, from 1999 levels, HIV transmission and impact of the
              HIV/AIDS pandemic in the developing countries in which the
              Administration's global HIV/AIDS initiative is implemented, as
              measured by the incidence of HIV among 15 to 24 year-olds.
       USAID will provide assistance, in conjunction with other
              donors, that will reduce unintended and mistimed pregnancies,
              as measured by a reduction in the Total Fertility Rate from
              1999 levels in countries in which USAID provides family
              planning assistance.
       USAID, working with the Department of the Treasury and other
              agencies and donors, will provide assistance that improves
              conservation of biologically significant habitat as measured
              by an increase in nationally protected areas over 1999 levels.
       USAID, working with the Department of State and other
              agencies and donors, will provide assistance that will reduce
              the threat of global climate change, as measured by reduced
              carbon dioxide industrial emissions compared to 1999 levels.
       The Peace Corps will provide opportunities for 4,200
              Americans in 2001 to enter service as new volunteers,
              assisting countries with their development needs and
              increasing cultural awareness.