International Affairs Issue Area Plan--Fiscal Years 1995-97 (Letter
Report, 03/01/95, GAO/IAP-95-5).

GAO provided information on its International Affairs issue area plan
for fiscal years 1995 through 1997, focusing on how: (1) the government
is adapting to post-Cold War budget realities; (2) functions and
activities are meeting essential U.S. interests; and (3) functions and
activities can be managed at the least cost to the taxpayer.

GAO plans to: (1) determine the compatibility of foreign affairs
agencies' functions and roles with their priorities, budget constraints,
and capabilities; (2) identify ways to better manage agency resources
and cut costs; (3) assess the progress and savings from foreign affairs
agencies' reform efforts; (4) determine whether foreign aid programs
serve current U.S. interests; (5) determine the cost, impact,
implementation status, and impediments to the success of key
initiatives; (6) assess the progress and feasibility of achieving U.S
goals; (7) identify ways to improve the organization and management of
U.S programs and activities; (8) determine how well the United States
has defined its objectives and devised a consistent strategy; and (9)
assess the results of U.S economic restructuring programs and identify
obstacles that impede progress.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  IAP-95-5
     TITLE:  International Affairs Issue Area Plan--Fiscal Years 1995-97
      DATE:  03/01/95
   SUBJECT:  International relations
             Foreign aid programs
             Strategic planning
             Economic development
             Foreign policies
             Cost control
             Arms control agreements
             Nuclear proliferation
             Interagency relations
IDENTIFIER:  Soviet Union
             Middle East
             Iran
             North Korea
             Persian Gulf
             
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Cover
================================================================ COVER


National Security and International Affairs Division

March 1995

INTERNATIONAL AFFAIRS
ISSUE AREA PLAN - FISCAL YEARS
1995-97

GAO/IAP-95-5



Abbreviations
=============================================================== ABBREV


FOREWORD
============================================================ Chapter 0

The International Affairs issue area is one of 35 issue areas for
which GAO periodically develops multiyear strategic plans.  Relying
heavily on consultation with congressional committees, as well as
with industry, academia, and agency officials, and other experts, GAO
develops issue area plans to ensure that our resources are focused on
the most important concerns of the Congress.  For each issue area,
GAO's strategic plan describes the significance of the issues, our
objectives, and the focus of our work.  GAO's goal is to serve as a
source of timely, accurate information and unbiased analysis for
decisionmakers in the Congress and executive agencies.  Our work
results in such products as reports, briefings, and testimonies. 

The costs and effectiveness of foreign affairs activities are being
closely scrutinized.  We will assess how the government is adapting
to post-Cold War budget realities, how functions and activities are
meeting essential U.S.  interests, and how these functions and
activities can be managed at the least cost to the taxpayer.  GAO's
work in the International Affairs issue area focuses on

  -- the structure, functions, and budgets of the foreign affairs
     agencies;

  -- U.S.  policies and programs designed to assist and influence the
     governments and people of other countries;

  -- U.S.  arms control and nonproliferation strategies and programs
     designed to address the threats posed by the spread of dangerous
     weapons; and

  -- U.S.  policies and programs in the former Soviet Union and
     Central Europe. 

The International Affairs issue area covers the Department of State,
the U.S.  Agency for International Development, the U.S.  Information
Agency, the Arms Control and Disarmament Agency, and related
programs; U.S.  participation in international organizations; and
certain international programs of the Department of Defense. 

In the pages that follow, we describe our key ongoing and planned
work on these issues. 

Because events may significantly affect even the best of plans, our
planning process allows for updating the plan to respond quickly to
emerging issues.  If you have any questions or suggestions about this
plan, please call me at (202) 512-4128. 

Joseph E.  Kelley
Director-in-Charge
International Affairs Issues


CONTENT
============================================================ Chapter 1


   FOREWORD
---------------------------------------------------------- Chapter 1:1

1


   TABLE I:  KEY ISSUES
---------------------------------------------------------- Chapter 1:2

4


   TABLE II:  MAJOR ONGOING AND
   PLANNED WORK
---------------------------------------------------------- Chapter 1:3

6


   TABLE III:  GAO CONTACTS
---------------------------------------------------------- Chapter 1:4

7


TABLE I:  KEY ISSUES
============================================================ Chapter 2

Issue                          Significance
-----------------------------  -------------------------------------------------
Foreign affairs functions and  Broad-based reform, restructuring, better
budgets: Do agencies'          management, and elimination of non essential
structures/functions reflect   activities are needed to meet evolving U.S.
fiscal realities and are       overseas interests in an era of budget
resources well managed?        reductions. There is growing momentum for major
                               downsizing and restructuring of the foreign
                               affairs apparatus and reduction in the $21-
                               billion international affairs budget.








Cost/impact of influence and   The Cold War rationale for foreign aid and other
assistance: Are U.S.           tools of influence is no longer valid. Faced with
policies/programs affordable   budget reductions and skepticism on the need for,
and are they achieving         and impact of, overseas expenditures, the
essential objectives?          government needs to ensure that its strategies
                               and tools effectively serve U.S. interests at
                               acceptable costs. The administration plans to
                               spend about $13 billion in 1996 for bilateral and
                               multilateral assistance.

Arms control and               Achieving the objectives of arms control and
nonproliferation: Are U.S.     stemming the spread of dangerous weapons and
strategies addressing threats  technology remain cornerstones of U.S. national
posed by the spread of         security policy, given the collapse of the Soviet
dangerous weapons?             bloc and ongoing concerns about potential
                               troublespots such as Iran and North Korea.
                               Results of U.S. strategies and programs, costing
                               over $2 billion each year, will have an
                               immeasureable impact on future defense costs and
                               U.S. security.


Former Soviet Union and        The United States has a direct security stake in
Central Europe: Are U.S.       Russian and other former Soviet bloc reform
policies and programs          efforts. It is important that the funding,
achieving the objectives?      credits, and other resources, amounting to about
                               $15 billion over several years, are directed and
                               spent wisely.




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

Objectives                            Focus of work
------------------------------------  ------------------------------------------
--Determine the compatability of      Foreign affairs functions with probable
foreign affairs agencies' functions   duplication or cost recovery options.
and roles with priorities, budget
constraints, and capabilities.        Opportunities to cut costs with tighter
                                      management/reassessment of purpose.
--Identify ways to improve
management of agency resources and    Proposals to reorganize the foreign
cut costs.                            affairs apparatus and reform efforts
                                      announced by the Vice-President.
--Assess progress of and savings
from reform efforts at foreign        Resource management and control for areas
affairs agencies and the advantages,  of risk and material weakness.
disadvantages, and cost implications
of proposals to reorganize the
foreign affairs apparatus.

--Determine whether tools/programs/   Large, highly visible, and/or
agreements serve current and          controversial country programs or
essential political, economic, and    initiatives.
security interests.
                                      U.S. participation in peacekeeping and
Determine cost, impact,               multilateral institutions.
implementation status, and
impediments to success of key
initiatives.

--Assess progress and feasibility of  Nonproliferation goals and programs in
achieving U.S. goals and objectives   the former Soviet Union, especially the
and identify the obstacles.           cooperative threat reduction programs.

--Identify ways to improve            Management and efficiency of key
organization and management of U.S.   initiatives, agreements, and treaties.
programs and activities.
                                      International safeguards over weapons
                                      grade materials.

--Determine how well the United       Appropriateness and success of strategy
States has defined its objectives     in attaining U.S. goals.
and devised a consistent strategy.
                                      Impact, cost, status, and impediments to
--Assess results of U.S. programs in  U.S. assistance.
helping the region achieve economic
restructuring and democracy and
identify obstacles that impede
progress.
--------------------------------------------------------------------------------

TABLE II:  MAJOR ONGOING AND
PLANNED WORK
============================================================ Chapter 3

Issue                          Major jobs
-----------------------------  -------------------------------------------------
Foreign affairs functions and  Proposals to consolidate the foreign affairs
budgets                        agencies\a
                               Implementation of the Vice President's reform
                               plans at the foreign affairs agencies
                               How best to manage the delivery of foreign aid
                               Budget scrub of the international affairs
                               (function 150) account
                               Disposal of State's excess overseas real
                               property\a
                               Cutting/recovering costs in consular programs\a
                               State's role in the competitiveness arena
                               Need and affordability of diplomatic allowances/
                               benefits
                               Affordability of overseas security requirements
                               How best to equitably share embassy costs
                               Allocating resources to foreign policy goals

Cost/impact of influence and   Stability and recovery in Haiti\a
assistance                     Impact of democracy promotion overseas\a
                               Reforms at the World Bank\a
                               Peace operations effectiveness\a
                               Management/impact of international antidrug
                               programs\a
                               Cost of peace and U.S committments to the Middle
                               East and Persian Gulf
                               NATO countries' support for new missions and
                               costs of expanding the alliance
                               Cost and status of U.S. antiterrorism
                               initiatives

Arms control and               International accountability over plutonium
nonproliferation\b             materials
                               Management and cost of the Department of
                               Defense's
                               On-Site Inspection Agency
                               Impact of cooperative threat reduction
                               programs\a
                               Progress in implementing nuclear agreements with
                               North Korea
                               Impact of chemical weapons destruction programs
                               in the former Soviet Union\a

Former Soviet Union and        Crime assistance package
Central Europe\b               Progress in privatization
                               Establishing a timetable for ending U.S.
                               assistance
                               Management of exchange activities
                               Results from provision of enterprise funds
--------------------------------------------------------------------------------
\a Ongoing assignments

\b Work in the former Soviet Union is part of an integrated GAO-wide
plan that will be implemented by several groups of the National
Security and International Affairs; General Government; and
Resources, Community, and Economic Development Divisions. 


TABLE III:  GAO CONTACTS
============================================================ Chapter 4


      DIRECTOR-IN-CHARGE
-------------------------------------------------------- Chapter 4:0.1

Joseph E.  Kelley (202) 512-4128


      DIRECTOR
-------------------------------------------------------- Chapter 4:0.2

Harold J.  Johnson, Jr. 


      ASSOCIATE DIRECTOR
-------------------------------------------------------- Chapter 4:0.3

Benjamin F.  Nelson


      ASSISTANT DIRECTORS
-------------------------------------------------------- Chapter 4:0.4

John Brummet
Diana M.  Glod
Ronald A.  Kushner
David R.  Martin
Tetsuo Miyabara
Andres C.  Ramirez, Jr.
Leroy W.  Richardson
Charles A.  Schuler
F.  James Shafer, Jr.
Lawrence L.  Suda
Louis H.  Zanardi

*** End of document. ***