SECTION: CAPITOL HILL HEARING TESTIMONY

LENGTH: 1240 words

COMMITTEE: SENATE APPROPRIATIONS

SUBCOMMITTEE: FOREIGN OPERATIONS

HEADLINE: TESTIMONY USAID BUDGET

TESTIMONY-BY: MITCH MCCONNELL , SENATOR

BODY:
May 8, 2001 STATEMENT OF U. S. SENATOR MITCH McCONNELL ON USAID'S BUDGET REQUEST It is a pleasure to welcome you before the Foreign Operations Subcommittee, Mr. Natsios. Your background makes you uniquely qualified to take charge of the U. S. Agency for International Development, and I have no doubt that your time on the "Big Dig" in Boston will serve you well in your many tasks ahead. In the past, I have been extremely critical of the Agency for lacking a strategic vision, failing to establish concrete goals, and failing to deliver assistance in a timely and effective manner. I have repeatedly and publicly taken issue with poor management and ineffective leadership in Washington and the field. Although recently confirmed, you seem to have wasted no time in trying to address these shortfalls. You are off to a good start. Identifying management and personnel reform as your first priority gives me hope that real change at USAID is in the offing. I note that the FY 2002 budget request for the Agency's operating expenses has increased $30 million over last year's request, and I look forward to hearing more about how you envision those funds being spent. Your testimony that foreign assistance programs should serve U. S. policy objectives is on the mark. As I have often said, U. S. foreign assistance is not an entitlement and our aid must support U. S. economic, political, and security goals. The strategic reorientation of USAID to address the trends of globalization and conflict give definable purpose to the Agency. While time will allow a more informed judgement on the effectiveness of the four program pillars you propose, the changes you are initiating at USAID are welcomed. I want to comment briefly on the four pillars. As I understand the Global Development Alliance (GDA) pillar, USAID will seek partnerships with corporations, NGOs, and the academic community, and ask that they contribute funding, personnel, and information to support development programs. I am concerned that unless the Agency addresses its management shortfalls, the GDA will be short lived. The strength of corporations, NGOs, and academic institutions is that they can often initiate and respond to program needs faster and better than government bureaucracy. I am curious how the GDA will operate and make decisions on funding priorities and would appreciate your thoughts in this area. Coming from a farm state, the pillar of Economic Growth and Agriculture seems to make good sense. The linkages between economic and agricultural development, and improvements in local markets and the welfare of citizens are no different whether in the United States, South Asia, or Africa. However, I wonder if democracy and governance programs should also fall under this pillar. I see a logical connection between economic development and good governance. The pillar of Global Health has received particular attention in the budget request. The request for the Child Survival and Disease Program Fund reflects a $50 million increase over last year's appropriated level, with HIV/AIDS programs receiving a 10 percent increase. Many on Capitol Hill feel we ought to be doing more on HIV/AIDS, as evident in the recent Senate vote to double AIDS assistance to $1 billion dollars. I look forward to hearing your views on this subject. The final pillar of Conflict Prevention and Development Relief encompasses democracy and governance programs and disaster relief. While I continue to have concerns with USAID's democracy and governance programs, I applaud your efforts to be pro-active, rather than reactive, in responding to political and natural crises. The Administration's FY 2002 request for USAID is an increase of $129 million over last year's appropriation. The Child Survival and Disease Program Fund, Development Assistance, International Disaster Assistance, and funding for basic education programs have all been increased under the President's request. You have a unique opportunity to make a lasting mark on USAID, Mr. Natsios, and you have my support and encouragement.

LOAD-DATE: May 11, 2001, Friday