[Economic Outlook, Highlights from FY 1994 to FY 2001, FY 2002 Baseline Projections]
[III. Major Functions of the Federal Government]
[3.  International Affairs]
[From the U.S. Government Printing Office, www.gpo.gov]


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                        3.  INTERNATIONAL AFFAIRS

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

                        Table 3-1.  Federal Resources in Support of International Affairs
                                          (Dollar amounts in millions)
----------------------------------------------------------------------------------------------------------------
                                                                                                        Percent
                                Function 150                                     1993        2001       Change:
                                                                                Actual     Estimate    1993-2001
----------------------------------------------------------------------------------------------------------------
Spending:
  Discretionary budget authority \1\........................................     21,194      22,706          7%
  Mandatory outlays.........................................................     -4,322      -8,815        104%
Credit Activity:
   Direct loan disbursements................................................      1,943       2,862         47%
   Guaranteed loans.........................................................      9,531      11,110         17%
Tax expenditures............................................................      4,510      18,060          NA
----------------------------------------------------------------------------------------------------------------
NA = Not applicable.
\1\ Excludes $12,063 million in 1993 for an increase in the U.S. quota at the International Monetary Fund.

  ----------------------------------------------------------------------
  International affairs activities support America's critical interests 
by reaching key strategic goals: fostering worldwide economic growth, 
supporting the establishment and consolidation of democracy abroad, 
enhancing America's national security, improving the global environment, 
and addressing other key global issues, such as AIDS. The Clinton-Gore 
Administration capitalized upon the new post-Cold War architecture by 
working to expand the global economy and the benefits of globalization, 
supporting the liberalization of trade, and aiding countries in their 
transition to democracy.

Promoted Free Trade, Open Markets, and Economic Prosperity

  Completed Successful Trade Negotiations--the North American Free Trade 
Agreement and the Uruguay Round: Strong U.S. growth over the past eight 
years accompanied America's increased integration into the world 
economy. Between 1992 and 1999, the U.S. economy, as measured by real 
gross domestic product, grew at an average annual rate of 3.7 percent, 
while real exports of goods and services increased on average by 6.8 
percent per year. Imports have grown at an average annual rate of 10.6 
percent per year. This reflects both stronger growth in the United 
States than in the rest of the world over much of this period, and the 
crucial role of imports--now dominated by capital goods such as the 
computers and machinery--in supporting U.S. investment. Indeed, 
increased globalization has come at a time of rapid growth that has 
produced a dramatic increase in the number of new jobs and the reduction 
of unemployment to the lowest levels in 30 years.
  These developments have been facilitated by the Administration's trade 
policy accomplishments, including passage of the Uruguay Round trade 
agreements, the North American Free Trade Agreement, and over 200 post-
Uruguay Round negotiations that have yielded additional market access 
commitments in financial services, basic telecommunication services, and 
information technology. Several studies recently reviewed by the Council 
of Economic Advisers estimate an annual income gain to the United States 
of between $27 billion and $37 billion with full implementation of the 
Uruguay Round's results.

  Successfully Managed Financial Crises in Mexico and Asia: Since 1993, 
the Administration has confronted and successfully responded to two 
serious financial crises that threatened to undermine regional and 
global

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economic stability. In December 1994, the rapidly depreciating Mexican 
peso jeopardized the economic progress and reforms made by the 
government of Mexico up to that point. In response, the Administration 
extended up to $20 billion in available credits through the Exchange 
Stabilization Fund (ExSF), and worked with the International Monetary 
Fund (IMF) to extend a line of credit based on the implementation of 
further reforms. The rapid response proved instrumental in restoring 
investor confidence and allowing the Mexican economy to resume growth. 
As a measure of this success, by January 1997, Mexico had repaid ahead 
of schedule all of the $11.5 billion it drew from the facility.
  A more serious crisis emerged in the fall of 1997 when the devaluation 
of the Thai currency began a series of currency crises in Asia that soon 
engulfed Malaysia, Indonesia, Philippines, and South Korea--and later 
Russia. This crisis, because of its size and the region's integration 
into the global economy, threatened the stability of the global economic 
and financial system. The Administration responded to this crisis by 
advancing steps to strengthen the international financial architecture, 
by maintaining open markets, by making the ExSF available as part of a 
secondary line of defense against further instability, and by achieving 
authorization and appropriation for an IMF quota increase and the 
establishment of the New Arrangements to Borrow (NAB). Coupled with the 
macroeconomic and structural reforms implemented by the Asian 
governments, much of the region has resumed positive growth rates in a 
more sustainable fashion just two years after the crisis.

  Passed the International Monetary Fund Quota Increase and the New 
Arrangements to Borrow: In cases of severe international financial 
crises, the IMF plays a key role in mobilizing official assistance 
conditioned on policy reforms--and is the one institution situated to 
mobilize such substantial support quickly--and provides the predominant 
share of official financing needed to help stabilize the global monetary 
system. In September 1997, the 11th quota review resulted in a call for 
a 45-percent increase in the resources of the IMF to allow it to carry 
out its normal operations while preserving the ability to respond to 
such crises in a rapidly growing and increasingly complicated world 
economy. In addition to the IMF quota increase, the G-7 nations proposed 
the creation of the New Arrangements to Borrow, which would complement 
the existing supplemental credit line, the General Arrangements to 
Borrow.
  The call for an increase in available IMF resources coincided with the 
decade's gravest threat to the global financial and economic system, the 
East Asian Financial Crisis. With this event as a backdrop, the 
Administration requested and received authorization and appropriations 
for both the quota increase ($14.5 billion) and the NAB ($3.4 billion) 
in 1999. That legislation resulted in both the needed resources being 
made available and a bi-partisan agreement on policy priorities in the 
IMF, which included a commitment to greater IMF transparency, resulting 
in the adoption of a number of reforms by the Fund. With the quota 
increase and credit line in hand, the IMF was able to play a critical 
role in responding to the crisis and help the affected countries along 
the path of reform and sustainable growth.

Facilitated the Continued Transition to Democracy Throughout the World

  Helped Integrate Poland, Hungary, and Czech Republic into the West: 
The integration of Poland, Hungary, and the Czech Republic into the 
democratic, free-market family of nations and Western institutions such 
as NATO is one of the key foreign policy achievements of the past eight 
years. Since 1993, U.S. efforts in these countries focused on building 
democratic institutions and achieving economic reforms. Timely and 
effective U.S. assistance played a key role in their governments' 
efforts to privatize industries and put in place the judicial and 
regulatory structures needed for a market economy and a society based on 
the rule of law. As a result of these efforts, by 2000, these three 
countries had graduated from being Support for Eastern European 
Democracy aid recipients to becoming NATO allies, all within one decade 
of the dismantling of their Communist regimes.

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  As a measure of the success of U.S. assistance efforts, according to 
Freedom House, all three countries have achieved political rights and 
civil liberties that are roughly comparable to those found in Western 
Europe, with their Freedom House ratings, based on a 1 to 5 scale, 
improving from 4.2 in 1992 to 4.7 in 1999. Similarly, U.S. assistance in 
implementing economic reforms has helped all three countries develop 
effective market institutions and flourishing private sectors. Because 
their transformations have been so successful, Hungary, Poland, and the 
Czech Republic are among the first tier of countries that will be 
considered for membership in an expanded European Union.

  Helped Democratic Transitions in Russia and Ukraine: Since 1993, the 
Administration's assistance strategy for the states of the former Soviet 
Union has been designed to foster their transition to democracy and 
market-based economies and to facilitate their integration into the 
larger global community, while advancing U.S. national security 
interests in such areas as nonproliferation and arms control. The 
strategy has achieved notable successes during the past eight years. In 
Ukraine, for example, U.S. assistance made possible Ukraine's complete 
denuclearization and helped develop and implement a successful 
privatization program for small- and medium-sized enterprises. Similar 
assistance efforts in Russia, particularly in the threat reduction area, 
have helped ensure implementation of landmark arms control treaties and 
ensure that weapons of mass destruction do not fall into the wrong 
hands. In both countries, U.S. assistance has helped promote the growth 
of independent media and non-governmental organizations. The transitions 
in Russia and Ukraine are incomplete, but both countries have made 
important strides toward development of democratic institutions and the 
rule of law. Their successful completion will depend upon continued 
commitment on the part of both governments to overcome challenges such 
as crime and corruption as well as economic inequality, combined with 
the implementation of effective reform programs and improvements to the 
investment climate.
  Promoted Peace in the Middle East: During the last eight years, the 
United States has been a strong and continuous supporter of the search 
for a comprehensive peace in the Middle East. United States diplomatic 
and financial support has been indispensable for progress towards peace 
and stability in the region. Our efforts have focused on promoting 
progress and stability through bilateral negotiations between Israel and 
the Palestinians, Syrians, and Lebanese; through supporting allied 
nations with diplomacy, military deployments, and security assistance; 
and, through regional economic development and containment of Iraq and 
other threats to stability in the region. U.S. assistance has 
contributed to and helped sustain the progress achieved as a result of 
the Oslo Accords, the supplementary Wye River and Sharm el Sheik 
agreements, the Jordanian-Israeli peace treaty, and the Camp David 
negotiations this past year. Most recently, the Administration submitted 
a request of $750 million in supplemental 2001 funding and recommended 
an additional $500 million in 2002 funding to assist those countries and 
parties in the Middle East that take constructive steps in the search 
for peace. In the current tragic circumstances of continued violence in 
the region, the United States has worked closely with the parties to end 
the violence and has supported international efforts, such as the 
International Fact Finding Committee, designed to diffuse tensions and 
restore confidence among the parties in the region.
  Promoted U.S. Assistance for Plan Colombia: The U.S. assistance to 
Plan Colombia is a $1.3 billion bi-partisan, integrated set of programs 
developed with the government of Colombia and designed to reduce the 
supply of drugs coming into the United States and to bring greater 
stability to the Andean region. This emergency supplemental 
appropriation was signed by the President in July 2000, and includes 
funding for interdiction of trafficking, eradication of illicit crops, 
alternative development, human rights strengthening, displaced persons, 
and justice system reforms in Colombia and other Andean countries. Even 
as implementation proceeds, the United States continues to lead efforts 
to encourage cooperation and contributions from the international 
community. Success of this program will depend upon the successful 
coordination of its different, inter-related facets, and upon the 
direction taken by Colombia's internal conflict.

[[Page 56]]

  Helped Democracy in Guatemala: After 36 years of civil war that led to 
the death of up to 200,000 people, the government of Guatemala signed a 
peace agreement formally ending the conflict in 1996. The peace accords 
established the framework for a more participatory and equitable society 
involving the integration into society of ex-rebels and a comprehensive 
restructuring of the military, justice system, tax policy, and social 
services.
  As part of a multilateral effort to support the peace accords, the 
United States doubled its assistance to Guatemala, and has provided over 
$110 million in Economic Support Funds since 1997 to support the 
implementation of the accords, the demobilization of thousands of ex-
combatants, infrastructure reconstruction in war-affected areas, land 
titling, fiscal reform, and literacy of women. With strong multilateral 
support, Guatemala is now entering its fifth year of successfully 
implementing the peace accords. These structural reforms have started 
the process of transforming Guatemala into a more participatory and 
equitable society, but significant challenges remain. The Agency for 
International Development (USAID) plans to continue support for the 
peace process until 2003 to address remaining challenges, including 
continuing income disparities, land distribution issues, and civic 
violence.

  Debt Forgiveness: In 1999, under United States leadership, the G-7 
nations agreed at the Cologne summit to an initiative to provide 
expanded debt reduction to heavily indebted poor countries (HIPCs). This 
initiative will provide the 33 countries likely to meet HIPC eligibility 
requirements with debt reduction of up to $90 billion, or 70 percent of 
their total debt. For 2000 and 2001, the Congress appropriated the 
Administration's full request of $545 million ($185 million for the 
reduction of U.S. bilateral debt and $360 million as a contribution to 
the HIPC trust fund to reduce the debt held by regional development 
banks) for the expanded HIPC initiative. In order to fully implement the 
initiative, $375 million in additional funds will need to be 
appropriated in 2002 and 2003.
  Many poor countries, particularly in Africa, have developed 
unmanageable debt burdens to official bilateral and multilateral 
creditors, and the debt servicing payments to these creditors often 
prevent these countries from making desperately-needed social 
investments in poverty reduction, primary education, child immunizations 
and other health programs, or clean water and sanitation. In the vast 
majority of HIPCs, per capita Gross National Product amounts to less 
than $1 per day and the average for all HIPCs is only about $360 per 
year. In response to the needs of these countries, the United States 
proposed to expand the HIPC initiative (originally adopted in 1996) to 
provide deeper, broader, and faster debt reduction for more countries, 
contingent on economic reforms and application of savings on debt 
servicing to social concerns. While the Administration's efforts have 
been a leap forward in addressing the debt burden of poor countries, 
long-term success ultimately will depend in large part on whether the 
beneficiary countries continue the economic reforms begun under this 
initiative and remain committed to the alleviation of poverty and 
support of social programs.

  Developed and Expanded Programs to Assist African Countries: The HIPC 
debt reduction initiative is just one of a series of measures that this 
Administration has undertaken during the past several years to assist 
sub-Saharan African countries to strengthen their economies and deal 
with difficult economic, social, political, and environmental 
conditions. These initiatives have been a response to the clear 
understanding that many countries in sub-Saharan Africa have failed to 
participate in the benefits of the growing economic globalization. 
Rather, these countries have failed over the past three decades to 
sustain positive, real, per-capita economic growth, with serious 
negative consequences for their populations. In addition to debt 
reduction, some of the key measures undertaken by the Administration to 
assist sub-Saharan Africa have included:
  the increase in bilateral assistance levels, and the economic, 
          social, and political programs they support, back to past peak 
          levels;
  the passage of the African Growth and Opportunity Act, which, 
          by reducing U.S. tariffs on goods from sub-Saharan African

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          countries as well as other measures, seeks to encourage 
          increased trade and investment between the United States and 
          sub-Saharan African countries;
  the implementation of the Africa Trade and Investment Policy 
          Program, which helps reform-oriented African countries to 
          improve the enabling environment for trade and private 
          investment;
  the provision of disaster assistance to countries seriously 
          impacted by natural disasters, including $160 million to 
          respond to flooding in southern Africa in 2000; and,
  the rapid scaling up in 2000 and 2001 of broader HIV/AIDS 
          initiatives to combat the pandemic in south and eastern 
          Africa.
  The results of these efforts are somewhat mixed--while South Africa 
successfully ended apartheid and Mozambique peacefully concluded its 
decades-long civil war, civil strife continues in Sierra Leone, the 
Democratic Republic of the Congo, and other countries. However, the 
outrage expressed by African, as well as Western, countries at the 
recent military coup in Cote d'Ivoire is an encouraging sign that more 
and more Africans expect their governments to adhere to the rule of law 
and improve their standards of living.

Grappled with Global Problems

  Increased AIDS Awareness, Development of Preventative and Ameliorative 
Programs: The HIV/AIDS pandemic is the defining public health crisis of 
our time, which threatens to undo four decades of progress in 
international development. At the start of the 1990s, health experts 
estimated that between 15 and 20 million people would be living with HIV 
by the beginning of the 21st Century. Ten years later, the true 
magnitude of the epidemic is far more alarming: over 36 million people 
are living with HIV; and, HIV/AIDS prevalence among adults exceeded 20 
percent in seven countries in sub-Saharan Africa. In the hardest hit 
African countries, infant mortality is twice as high as it would have 
been without AIDS.
  The U.S. Government has been the world leader in responding to the 
global pandemic of AIDS. Since 1993, the United States, through USAID, 
has dedicated over $1.5 billion for the prevention and mitigation of 
this epidemic in the developing world. USAID's support was instrumental 
in reducing the prevalence of HIV in Uganda and Zambia and in 
stabilizing low HIV prevalence rates in Senegal, Philippines, and 
Indonesia. By 1999, however, it became apparent that international 
efforts to combat the HIV pandemic needed to be stepped up and the U.S. 
Government responded. The United States' global AIDS funding has 
increased from $139 million in 1999 to an estimated $455 million in 
2001. These increases are focused on high- prevalence countries and low-
prevalence countries at risk of impending epidemics in sub-Saharan 
Africa, Asia, and Latin America, where countries have been selected for 
``rapid scale-up'' and ``intensive focus'' under the Leadership and 
Investment in Fighting an Epidemic initiative. The U.S. Government 
effort has brought together a host of Federal agencies in the first ever 
Government-wide mobilization against AIDS.

  Kyoto Protocol and Related Environmental Programs: Global climate 
change is one of the most far-reaching threats to sustainable 
development worldwide. As the world's number one emitter of greenhouse 
gasses, the United States has recognized the need to work with 
developing countries to stem global climate change. The Administration 
announced at the UN in 1997 a plan to invest $1 billion over the next 
five years in programs and activities to help developing countries to 
reduce greenhouse gas emissions, and the 2001 appropriation funds the 
fourth tranche of this commitment. USAID is also addressing other 
critical global environmental challenges such as clean energy, natural 
resources management, and biodiversity conservation, for which the 2001 
appropriation provides a significant increase in funding.
  President Clinton signed the Kyoto Protocol in November 1998, 
reaffirming the Administration's commitment to work with other countries 
to meet the challenge of global warming. The Kyoto Protocol is an 
historic step forward in international efforts to address global 
warming, incorporating environmental targets with market-based 
mechanisms to minimize the cost of meeting them. However,

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ratification of the Protocol requires passage by the U.S. Senate. 
Lasting progress in combating global warming will require ratification 
by the United States, as well as meaningful participation by key 
developing countries in addressing climate change.

Protected American Lives and Changed America's Foreign Policy Machinery

  Greatly Expanded Embassy Security: As the President stated on the 
second anniversary of the bombing attacks on our embassies in Nairobi 
and Dar es Salaam on August 7, 1998, the terrorists took from us our 
colleagues, friends, and loved ones, but they have failed utterly to 
deter us from advancing our principles around the world. Addressing the 
security vulnerabilities of the Nation's diplomatic presence has been 
given the highest priority. Since the embassy bombings, the 
Administration has embarked upon an unprecedented program of security 
initiatives around the world. It initiated a long-term capital program, 
because it will take a multi-year effort to address these 
vulnerabilities and proposed advanced appropriations of $3.4 billion 
over the 2002-2005 period to sustain that program. Efforts have focused 
on bringing our diplomatic facilities up to heightened security 
standards and on maintaining necessary security upgrades. These have 
included enhanced local guard services, physical security equipment and 
technical support upgrades, increased deployment of armored vehicles, 
increases in American security personnel, security and crisis management 
training, and a worldwide program to build new, secure facilities.
  Through 2001, the Administration has invested about $3 billion in this 
effort. These funds have been used to upgrade comprehensively the 
security at our overseas facilities, including enhancing the physical 
security at U.S. missions through construction projects, the 
installation of security equipment, inspecting all vehicles entering 
U.S. diplomatic facilities, expanding anti-terrorism assistance training 
to aid foreign police in combating terrorism, and hiring additional 
diplomatic security agents. These funds are also being used to support 
the initial stages of a worldwide embassy security construction program 
with a goal of replacing up to 220 diplomatic and consular facilities 
worldwide with new, secure buildings. A major challenge currently being 
addressed is the need to pursue fully regional efficiencies and security 
planning that will have an impact on the need for overseas staffing. The 
results of such analysis then will be used to ensure that facility 
design addresses both the size and functional needs of all U.S. 
Government staffing needs at each location.

  Enhanced the Security of U.S. Borders: The Administration has 
implemented a comprehensive strategy to improve the Department of 
State's equipment, technology systems, and support needed to carry out 
the vital function of U.S. border security. Major initiatives over the 
last eight years have included a comprehensive, worldwide upgrade of 
computer equipment and consular systems at the Department's overseas 
posts; increased data sharing with other border security and law 
enforcement agencies; continued improvements to the automated name 
checking system capabilities; expanded implementation of the Border 
Crossing Card program in Mexico; and, modernization of the security and 
delivery of U.S. passports to American citizens, including completion of 
the initial deployment of passport photo digitization technology. These 
improvements were made possible by the establishment of a new fee paid 
by persons seeking non-immigrant visas for travel to the United States.
  Improved security has not come at the expense of customer service. To 
the contrary, under the Vice President's National Performance Review, 
reinvention goals have been met by eliminating long lines at high volume 
passport agencies and vastly increasing consular information and 
services available via the Internet. Appointment systems that allow 
customers to schedule a convenient time to apply for a passport are now 
installed at passport agencies in New York, Boston, Chicago, Houston, 
Los Angeles, Miami, Philadelphia, San Francisco, Seattle, Stamford, and 
Washington, D.C., and the Department of State has eliminated the 
requirement to stand in line while waiting for service by introducing 
customer-numbering systems. The Department of State's Consular Affairs 
web site (travel.state.gov) went on-line in 1996. Since then, the amount 
and variety of information on the site have grown enormously and it now 
includes downloadable passport

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applications, announcements and warnings on safety abroad that are 
posted on the web site immediately upon approval, tips for students and 
travelers, and other information and services to assist Americans 
abroad.

  Integrated the United States Information Agency (USIA) and the Arms 
Control and Disarmament Agency (ACDA) into the State Department: The end 
of the Cold War and efforts to reinvent Government provided the 
opportunity to seek a new approach to the conduct of foreign policy and 
a reorganization of foreign affairs agencies. Under the Foreign Affairs 
Reform and Restructuring Act of 1998, USIA and ACDA were consolidated, 
and the missions, personnel, and programs of these agencies were 
integrated into the State Department and the newly-independent 
Broadcasting Board of Governors, which was established as an independent 
executive branch agency. One year following the October 1, 1999, 
implementation of the Act, the integration of USIA's programs into the 
State Department has already strengthened U.S. foreign policy by making 
public diplomacy an integral component of foreign policy. ACDA's 
integration on April 1, 1999, has made the State Department better able 
to contribute to the coordination of foreign and security policy and 
deploy more effectively the broad tools of diplomacy to promote arms 
control and nonproliferation. As integration is fully implemented, the 
challenge remains to streamline activities and effectuate significant 
management improvements and resource reductions in years to come.

Provided Multilateral Solutions to Multilateral Problems

  UN Reform and Arrears Clearance: The Administration, in cooperation 
with the Congress, has made substantial progress toward reducing U.S. 
arrears owed to the UN and bringing about badly needed reforms in that 
organization. The United States has used its influence to push for 
management improvements, organizational streamlining, and the budget 
discipline needed to ensure zero nominal growth in the UN and 
specialized agencies' budgets. The United Nations Reform Act of 1999 
provides the foundation for this process by conditioning U.S. payments 
for specific arrearage amounts to the implementation of reforms at the 
UN and reductions in the U.S. assessment rate for the UN regular, 
peacekeeping and other specialized agencies' budgets. The Administration 
obtained congressional approval for $926 million to be available upon 
those conditions being met. The first set of conditions was met last 
year, allowing an initial payment of arrears of $100 million. As a 
critical element in the effort to bring about the other reforms that 
must be achieved prior to releasing the remaining arrearage payments, 
the Administration successfully concluded negotiations to establish a 
new scale of assessments for UN dues that will reduce the U.S. share of 
the UN budget and result in substantial future budgetary savings.
  Expanded UN Peacekeeping: The Administration has used its leadership 
at the UN in support of a number of peacekeeping operations to contain 
flashpoints that threatened international security in Bosnia, Kosovo, 
East Timor, and other locations. UN peacekeeping operations have 
directly supported U.S. national interests by helping nurture new 
democracies, reducing refugee flows, and preventing small conflicts from 
developing into regional or international wars which would be far more 
costly in terms of lives and resources. The United States has been a 
driving force behind efforts to identify and implement reforms at the UN 
to improve the efficiency and efficacy of peacekeeping operations. As 
part of this process, the United States recently concluded negotiations 
with the other UN member countries to reduce the level of U.S. 
assessments for UN peacekeeping activities.
  Non-Proliferation: The Administration supported several initiatives in 
the area of non-proliferation.
  Enhanced Threat Reduction Initiative: Over the past eight years, the 
United States has provided extensive assistance to Russia and the other 
New Independent States (NIS) to help reduce the risk of proliferation of 
weapons of mass destruction and associated delivery systems, materials, 
technology and expertise, and to enhance regional stability. Such 
assistance has enabled Belarus, Kazakhstan, and Ukraine to become non-
nuclear-weapons states and helped deactivate over 5,000 strategic 
nuclear warheads. The 1998 economic crisis in Russia and other NIS 
increased the risks of

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weapons and weapons expertise proliferation. In response, the 
Administration proposed the Expanded Threat Reduction Initiative in 
January 1999 to accelerate and expand non-proliferation assistance to 
the NIS. As a result, with congressional support, over $870 million was 
made available in 2000 and 2001 for high priority non-proliferation 
programs of the Departments of Defense, Energy, and State. These 
programs have enhanced nuclear material security at tens of NIS sites; 
provided thousands of former Soviet weapons scientists employment 
opportunities in peaceful research and development ventures; enhanced 
border controls; and provided other assistance to reduce regional and 
global threats. Success in continuing to reduce such threats will be 
dependent upon continued cooperation between Russia, the other NIS, and 
the West to address global security concerns raised by economic 
uncertainty in the region.
  Korean Peninsula Energy Development Organization (KEDO): The United 
States has been committed to preventing the destabilizing manufacture 
and deployment of nuclear weapons by North Korea. Through focused 
diplomatic efforts, the United States and North Korea concluded in 
October 1994 an Agreed Framework to address concerns about the 
intentions of North Korea's nuclear program. Under the terms of the 
Agreed Framework, the United States pledged to assist North Korean 
civilian energy requirements--with non-proliferation safeguards--through 
the newly created KEDO in exchange for North Korean termination of its 
own nuclear program and for coming into line with international nuclear 
non-proliferation norms. Since the conclusion of the Agreed Framework, 
the United States has worked with the North Koreans toward full 
implementation, which has also led to improved relations between the 
countries, culminating in the visit of the Secretary of State to North 
Korea in the fall of 2000.
  Other Non-Proliferation Successes: More generally, the United States 
has invested in major efforts over the last eight years to strengthen 
the international regimes aimed at curbing weapons of mass destruction 
and ballistic missiles. In 1995, the Nuclear Non-Proliferation Treaty, 
which originally was set to last only twenty-five years, was extended 
indefinitely. In 1997, the Chemical Weapons Convention, which prohibits 
the development, production, transfer, and use of chemical weapons, 
entered into force following ratification by the U.S. Senate. While 
Senate ratification for the Comprehensive Test Ban Treaty remains to be 
secured, 160 countries have signed--and 67, including Russia, have 
ratified--this treaty prohibiting all nuclear explosions. At the same 
time, the United States has led the drive to strengthen both the nuclear 
safeguards system administered by the International Atomic Energy Agency 
and the constraints on biological weapons embodied in the Biological and 
Toxin Weapons Convention.

Responded to Humanitarian Crises

  Aggressive Responses to Hurricanes Mitch and Georges: In response to 
Hurricanes Mitch and Georges, which devastated Central America and the 
Caribbean, respectively, in the fall of l998, the U.S. Government 
civilian and military authorities cooperated to mount quickly and 
effectively one of the largest emergency relief responses to an 
international natural disaster in U.S. history. In the space of a few 
months, the United States provided supplies and food to millions of 
victims, as well as to effect emergency repairs to bridges, roads, and 
schools. In May 1999, the Congress approved the Administration's request 
for $956 million in supplemental funds for the Central American and 
Caribbean countries affected by the hurricanes. It contained $621 
million in reconstruction assistance to replace lost housing, 
rehabilitate damaged schools, implement disaster mitigation and 
watershed restoration, and support local governments. More than $100 
million of the funding is being implemented with the cooperation of 12 
other U.S. agencies including the Department of Transportation, 
Department of Health and Human Services, Peace Corps, and the U.S. Army 
Corps of Engineers.
