[Budget of the United States Government]
[III. Creating a Better Government]
[3. International Affairs]
[From the U.S. Government Publishing Office, www.gpo.gov]
3. INTERNATIONAL AFFAIRS
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Table 3-1. Federal Resources in Support of International Affairs
(In millions of dollars)
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Estimate
Function 150 2000 -----------------------------------------------------------
Actual 2001 2002 2003 2004 2005 2006
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Spending:
Discretionary Budget Authority.......... 23,459 22,651 23,867 24,388 24,918 25,468 26,031
Mandatory Outlays:
Existing law.......................... -4,069 -6,651 -3,543 -3,422 -3,438 -3,408 -3,361
Credit Activity:
Direct loan disbursements............... 1,571 2,252 2,047 476 226 224 119
Guaranteed loans........................ 11,443 11,110 11,544 10,829 10,743 11,585 11,215
Tax Expenditures:
Existing law............................ 16,630 18,060 18,340 18,910 20,040 21,260 22,590
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The Administration proposes $23.9 billion for International Affairs
programs in 2002. By fully funding these programs, the United States can
provide the global leadership needed to enhance national security,
including the security of Americans overseas; promote free trade and
open markets; counter the threat posed by the global trade in illegal
drugs; provide humanitarian and development assistance to address the
global spread of poverty and diseases; and provide the modern technology
and working conditions that our diplomats need in their efforts to
secure our national interests overseas.
The performance goals that follow represent key U.S. foreign policy
priorities based on the Administration's initial review of our
international affairs programs and objectives. As the Administration
continues to refine U.S. national security and foreign policy
strategies, additional objectives and performance goals are likely to be
identified. These goals should, therefore, be viewed as preliminary and
not as an exhaustive list. International affairs agencies have
additional performance goals that meet their legislative mandates in
ways that contribute to U.S. national interests.
National Security
Vigorous engagement and leadership in international affairs are
essential to U.S. national security. Experienced and skilled
professionals are required to protect America's security interests,
along with an active diplomacy and sufficient resources to address
challenges anywhere in the world. The Administration's efforts to reduce
the threat of weapons of mass destruction will combine active diplomacy
with critical, targeted assistance programs. The United States will
continue its bilateral efforts to resolve destabilizing regional
conflicts, including the use of economic and reconstruction assistance,
which will be complemented by multilateral work through international
financial institutions and the United Nations. These tools for
leadership in international affairs require a sustained commitment of
resources to achieve results.
American resolve to advance national security and foreign policy
interests throughout the world is unmatched. The advancement of those
interests requires a day-to-day American presence in dangerous locations
despite continued threats of terrorist violence. Effective performance
of embassy security measures
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must be an integral component of efforts to meet our national security
goals. The Administration has accepted the management challenge to
achieve efficiently and effectively global embassy security upgrades and
maintain a high level of readiness at U.S. overseas posts. The budget
proposes $1.3 billion for enhanced security measures, including $665
million for new, secure facility construction, which includes funding
for U.S. Agency for International Development (USAID) facilities, $211
million for additional security upgrades to existing facilities, and
$428 million for security readiness.
In addition to enhanced security, the Administration intends to review
America's official presence overseas. According to one study, the
distribution of U.S. Government staff overseas is based more on
historical legacy and bureaucratic inertia than by a clear commitment to
advance American policy goals. In some embassies, up to 30 U.S. agencies
may be represented. Frequently, agencies do not know the true costs of
having their staff in foreign countries. This situation clearly does not
reflect the desired goal of a well managed, rational, and cost effective
American presence overseas.
United Nations peacekeeping efforts can benefit U.S. national
security. Working with the UN allows the United States to address policy
objectives and share the cost among all nations, while reducing the
possible requirement to deploy U.S. troops abroad. The United States
must continue to address the need for UN management reforms. The United
States must ensure that UN peacekeeping mission goals are defined and
achievable, that vital national interests are identified, and that there
is not only a planned exit strategy, but also a ``success'' strategy to
UN peacekeeping operations.
The Department of State will meet the following goals in 2002:
Continue to make full use of active and defensive measures to
prevent and deter terrorist attacks and the loss of human
life. The resources requested will support maintenance of
counter-surveillance programs, integration of threat
intelligence into an active security posture, inspection of
all vehicles entering U.S. diplomatic compounds, and 24-hour
guard coverage and electronic monitoring of embassy
facilities.
Improve the security posture of all agencies overseas, make
more reliable the Department's ability to project resource
needs in the future, and examine the current financing
structure for overseas facilities to determine if it provides
a sound basis for long-term capital needs.
Set standards to measure the effectiveness of UN peacekeeping
activities and bilateral U.S. assistance programs designed to
build regional and national peacekeeping and peace enforcement
capacities worldwide. Make decisions concerning continued
support for and funding of these activities based on whether
these standards are being met.
Achieve demonstrable reductions in the flow of the material,
equipment, and technology needed to acquire, produce, or
deploy weapons of mass destruction, by helping officials in
exporting countries and key transshipment points to improve
their systems of export controls.
State Department Management and Operations
The budget provides funding to modernize and improve State Department
management, which is expected to enable the Department to achieve its
strategic and performance goals. The Department will identify
appropriate quantitative indicators to measure the success of management
reforms and ensure that budgetary resources are directly linked to
management performance.
As with any institution, excessive layers of bureaucracy and
duplicative bureaus impede effective management. In the case of the
State Department, they can hinder the prompt and effective execution of
foreign policy. To reduce the number of middle management positions that
complicate lines of authority and hinder the development and
presentation of coherent foreign policy, the Department of State will
empower line officers. The budget also provides the necessary resources
to improve needed work force planning and to strengthen the Department's
human
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resource management to enable the Department to effectively recruit,
assess, and retain the highest possible caliber work force.
The budget includes $210 million for information technology
investments that will improve interaction and information sharing among
agencies in the foreign affairs community and modernize secure
communications capabilities. The budget also provides the necessary
funding to ensure that diplomatic and consular facilities are planned
and constructed effectively, efficiently, and on budget.
In the context of the biennial authorization process, the Department
will propose legislative changes needed to implement management reforms.
In addition, the Department will improve its financial management
practices to identify savings and performance enhancements accruing from
the United States Information Agency (USIA)/Arms Control Disarmament
Agency (ACDA) merger. This merger brought 4,000 staff under the direct
control of the Secretary of State.
The Department will meet the following performance goals in 2002:
Identify and eliminate bureaucratic layers that hinder
effective foreign policy.
Undertake and implement a comprehensive review of the
Department's organization to realize efficiency gains by
eliminating duplication in bureau functions.
Review current administrative practices in overseas facilities
and undertake reforms, including increased use of Foreign
Service Nationals, to reduce substantially the cost of
administrative support.
Design and implement a long-term investment strategy in new
technology that enables employees to communicate more
effectively and that realizes increased cost savings and
efficiencies.
Complete and implement a comprehensive examination of current
and future work force needs. The Department will demonstrate
with measurable criteria how additional personnel contribute
to fulfillment of specific program goals.
Create and implement policies to ensure that the Department
recruits, hires, and retains Foreign and Civil Service
officers with the proper skills needed to fulfill the
Department's strategic and performance goals. The Department
will develop and apply performance criteria to measure the
effectiveness of its recruitment, examination, and retention
strategies.
Identify, review, and implement, as necessary, overseas
facility planning, construction, and management processes to
ensure effective and on-budget service delivery.
Describe savings and performance enhancements deriving from
the USIA/ACDA merger and take steps to ensure that this merger
achieves scale and other benefits as originally anticipated.
Make substantial progress toward financial systems compliance
with the Federal Financial Management Improvement Act.
Present an authorization proposal that includes a blueprint
for substantial management reforms.
Free Markets
As the President said in his Address to the Joint Session of Congress:
``The cause of freedom rests on more than our ability to defend
ourselves and our allies. Freedom is exported every day, as we ship
goods and products that improve the lives of millions of people. Free
trade brings greater political and personal freedom.''
International affairs programs work to increase our economic freedom
and prosperity in several ways. First, the United States Trade
Representative (USTR), supported by the Departments of State and
Commerce, and other agencies, works to reduce barriers to trade by
negotiating new trade liberalizing agreements and by enforcing existing
agreements. To reach this objective, the President has called on
Congress to quickly give him, as each of the previous five Presidents
has had, the ability to negotiate far reaching trade agreements with
presidential trade promotion authority. This authority will enable the
Administration to proceed aggressively with its negotiating agenda,
which includes the World Trade Organization's (WTO) built-in agenda on
agriculture and services, the
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Free Trade Area of the Americas (FTAA), and bilateral free trade
agreements.
Second, the Export-Import Bank provides export 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 projects involving U.S.
business. The President has pledged to reduce unnecessary corporate
assistance and to support an active, but limited, Government. To this
end, the Export-Import Bank must sharpen programs by focusing on support
that would not otherwise be available in the private market or which
redresses officially supported foreign competition. Similarly, OPIC's
activities should focus more closely on companies and countries that
cannot access private financing or insurance. These efforts should
enhance the value added of Export-Import Bank's programs and make OPIC's
programs complementary, not competitive, with the private market.
At the moment, these agencies have similar client bases and sometimes
overlapping product lines. For example, both the Export-Import Bank and
OPIC offer political risk insurance. The Administration intends to
review how these agencies, along with the U.S. Trade and Development
Agency, can serve American clients more effectively.
The trade agencies will meet the following performance goals in 2002:
USTR will work with Congress to obtain trade promotion
authority and use this to provide impetus for a new
negotiating round in the WTO, progress in the FTAA, and
negotiation of other free trade agreements, including with
Chile and Singapore.
USTR, working with the Treasury Department and Congress, will
seek extension of the Generalized System of Preferences and
extension and enhancement of the Andean Trade Preference Act,
as included in the President's revenue proposals.
The Export-Import Bank will expand its direct support to small
business above 2001 levels, as well as improve its internal
processes and outreach through use of proven technologies.
OPIC will strive to support a stable level of private U.S.
investment in 2002 that promotes American development goals,
while continuing to expand its lending to U.S. small business
above 2001 levels.
Andean Initiative
Andean countries are the source of virtually all of the cocaine in the
United States and an increasing share of the heroin--Colombia is the
primary regional source of both. This drug trade contributes to
political, economic, and social instability.
The budget includes $731 million for U.S. funding for the Andean
regional initiative, which will support drug eradication, interdiction,
alternative development in Colombia, Peru, Bolivia, Ecuador, and other
countries in the region. (Additional funding from economic assistance
accounts will augment these reforms directed toward democratic
strengthening and economic growth.) This initiative will build upon the
resources provided in the 2000 Emergency Supplemental Appropriations Act
for Plan Colombia and ongoing regional counterdrug funding for the State
Department's Bureau of International Narcotics and Law Enforcement
Affairs. About 50 percent of this combined new funding will go to Peru,
Bolivia, Ecuador and neighboring countries to maintain and continue
their success in eradicating illegal drug crops and to prevent spillover
of violence and the drug trade from Colombia. Additionally, about 50
percent of these 2002 funds will support alternative development, human
rights, displaced persons, judicial reform and democratic institution
building programs.
The State Department, working with other U.S. agencies, will meet the
following performance goals:
Reduce Colombian coca production by 30 percent from calendar
year 2000 levels by the end of calendar year 2002.
Eliminate all illicit coca production in Bolivia by the end of
calendar year 2002.
Negotiate revised coca and poppy control goals with the new
Government of Peru after it assumes power in July 2001.
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Establish meaningful, aggressive, achievable, and quantifiable
goals for counterdrug efforts in other countries in the region
by August 15, 2001, to be used in carrying out programs in
2002.
International Development/Humanitarian Response
The United States has a long and proud history of providing assistance
to poor countries, both to alleviate the human suffering brought on by
poverty and man-made and natural disasters. U.S. assistance must also
help to improve opportunities for freedom and prosperity. The United
States will work with other countries to help meet the needs of the poor
and vulnerable around the globe. The budget for USAID provides an
increase in funding to fight the spread of HIV/AIDS and other infectious
diseases. This will continue recent efforts by the United States to
combat the global spread of this disease and maintain the pressure on
other donors, multilateral organizations, and non-governmental
organizations to make greater efforts to address a plague that threatens
to undermine the economies and national security of affected countries,
especially those in sub-Saharan Africa where prevalence rates often
exceed 20 percent of the adult population. The budget also increases
investment in such key social sectors as basic education.
In addition, the United States will continue to leverage international
donor resources to promote global economic growth and reduce poverty by
seeking funding for our commitments to the Multilateral Development
Banks and to the Heavily Indebted Poor Country (HIPC) multilateral debt
reduction initiative. These multilateral programs assist countries to
reach their potential for sustainable growth through adoption of policy
reforms that promote market-oriented economies, fight corruption, and
improve transparency and accountability. The United States will continue
to make resources available to carry out agreements under the Tropical
Forest Conservation Act, which allows for restructuring debt to generate
funds for conservation projects.
One aspect of debt forgiveness, however, is the coordination of that
forgiveness with new lending. Four U.S. Government agencies currently
have direct loan and guarantee programs that are subject to debt
forgiveness initiatives. In some cases, agencies have offered new
credits to a country, only to have the country qualify for debt
reduction a short time later. The Administration intends to reconcile
the goals of debt forgiveness and credit management in a rational
manner.
Relevant agencies will meet the following performance goals for 2002:
USAID will increase funding to support prevention and care
programs that combat the HIV/AIDS pandemic.
USAID will increase support for economic growth, leveraging
private sector resources to foster agricultural development,
improve the business and trade climate, expand access to basic
education and increase the efficient use of energy in
developing countries.
USAID will expand conflict prevention and development relief
efforts, facilitating increased support from non-governmental
organizations, other private sector entities and other donors
to respond to crises, and recovery and support prevention
including support for democracy.
The United States will support the HIPC initiative to reduce
the debt burden of the poorest countries to more sustainable
levels in return for adopting appropriate policies to reduce
poverty and enhance economic growth. As part of this
initiative, the Department of Treasury will fund the
forgiveness of debt owed to the United States by an expected
33 qualifying countries and will provide contributions to the
HIPC Trust Fund in order to finance debt reduction by
multilateral institutions. The budget requests $224 million,
which along with $16 million from existing balances of
previously appropriated funds, will fully meet the U.S.
commitment for contributions to the HIPC Trust Fund.
Under the Tropical Forest Conservation Act (TFCA), the
Department of the Treasury has restructured some of
Bangladesh's debt in order to generate funds for conservation
programs. Treasury expects to continue making progress on this
initiative by completing agreements with two or
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three additional countries in 2001 with a budget cost of
approximately $13 million. In 2002, Treasury will make more
funds available for further programming under TFCA, as well as
up to $13 million that may be transferred from USAID.
The State Department, through the help and advice it provides
countries to clear land mines and other unexploded ordnance,
will expand by 3,500 square kilometers over 2001 the amount of
land available for local agricultural and other economic
activity. These efforts, funded primarily by $40 million from
the Nonproliferation, Anti-terrorism, Demining, and Related
Programs account, will speed economic and social recovery and
will reduce the casualties suffered by innocent civilians,
including children.
State, in cooperation with USAID and other relevant agencies,
should make and implement recommendations based on the 2000
review of humanitarian assistance programs to improve the
administration and delivery of relief.
The Peace Corps expects to have more than 7,000 volunteers to
address a variety of problems in the areas of agriculture,
environment, small business, and health, including a multi-
faceted initiative to fight the HIV/AIDS pandemic.
International Broadcasting
International broadcasting directly impacts the global free flow of
information by providing accurate coverage of world and local events to
foreign audiences with limited access to unbiased news reports. To meet
the President's Government-wide performance goals for 2002, the
Broadcasting Board of Governors will:
Reduce the number of upper- and middle-level managers in each
of the four broadcasting entities.
Link budget and management decisions more closely to
performance by revamping the strategic planning and
performance management system that incorporates Government
Performance and Results Act (GPRA) planning, the annual
language service review process, and the program reviews of
individual language services. By early 2002, the Broadcasting
Board of Governors will produce an over arching strategic plan
containing specific criteria for measuring the need for and
effectiveness of individual language services and programs and
explaining how they relate to one another and to overall GPRA
planning. This strategy will reduce duplication among the
various broadcast entities, eliminate ineffective or low-
priority language services and programming, and direct
resources to highest-priority, most effective languages and
programming.
By the middle of 2002, finalize and implement a uniform,
agency-wide strategy for capital planning, using private
contractors whenever possible, that will improve the operating
efficiency and reach of its broadcast network by taking
advantage of emerging technologies. Such a strategy will
address the latest broadcast technologies to combat jamming
and other transmission difficulties while ensuring that
worldwide audiences receive broadcasts via the media they are
most likely to use.
Actively solicit the participation of private-sector firms in
competitive bidding for contracts.