Copyright 2001 Federal News Service, Inc. Federal News Service
May 15, 2001, Tuesday
SECTION: PREPARED TESTIMONY
LENGTH: 8757 words
HEADLINE:
PREPARED TESTIMONY OF COLIN L. POWELL SECRETARY OF STATE
BEFORE THE SENATE COMMITTEE ON APPROPRIATIONS SUBCOMMITTEE ON
FOREIGN OPERATIONS
SUBJECT - INTERNATIONAL
AFFAIRS BUDGET
BODY: Secretary of
State Colin L. Powell Prepared Statement for the Record for the Senate
Appropriations Subcommittee on Foreign Operations May 15, 2001
Mr. Chairman, members of the subcommittee, I am pleased to appear
before you for the first time as Secretary of State, and to testify in support
of the President's International Affairs Budget for FY 2002.
This Budget represents a needed increase in the
Department's dollars for the upcoming fiscal year, and we are pleased with that.
This is a good start.
It is the first fiscal step in
our efforts to align the conduct of America's foreign relations with the
dictates of the 21st Century. As Secretary of State I wear two hats - one as CEO
of the Department, the other as the President's principal foreign policy
advisor.
Since the primary interest of this
subcommittee is in my role as foreign policy advisor to the President, I will
wear that hat for this testimony.
Of the $23.9 billion
in the President's FY 2002 budget request (a 5% increase over this year) there
is $15.2 billion for foreign operations -- or about 2% more than this year.
Let me give you some of the highlights of that part of the
budget request and let me begin with a significant change we are making in the
way the U.S. Agency for International Development carries out its
business.
U.S. Agency for International
Development:
The President's FY 2002 budget marks the
beginning of a new strategic orientation for USAID. At the center of this
strategic orientation is a new way of doing business to ensure that USAID's
long-term development assistance and humanitarian/disaster relief programs
better respond to U.S. national interests.
Increasing
levels of conflict, degraded economic performance, and widespread disease are
causing regional instabilities, complex humanitarian emergencies and, in some
cases, chaos. These conditions threaten the achievement of USAID's development
objectives and broader U.S. foreign policy goals. The new Administration intends
to address these particular conditions by concentrating USAID resources and
capabilities for a more effective method of delivery.
To improve USAID's effectiveness, several important changes are
outlined in the budget:
-- Reorientation of USAID
programs to focus on "Four Pillars" each of which supports achievement of
USAID's objectives;
-- As the first pillar,
introduction of the "Global Development Alliance" as USAID's new model for doing
business;
-- The simplification, integration and
reorientation of current programs and their alignment with three new program
pillars: Economic Growth and Agriculture; Global Health; and Conflict Prevention
and Developmental Relief;
-- Adjusting the Agency's
budget priorities to target increased funding for agriculture, HIV/AIDS, basic education, and conflict prevention and resolution;
-- Directing senior management attention to the sweeping
overhaul of the Agency's management, procurement, and operating systems. The
Global Development Alliance Pillar
The Global
Development Alliance (GDA) is USAID's business model for the 21st Century and is
applicable to all USAID programs. As USAID's first pillar, the GDA is based on
the Agency's recognition of significant changes in the economic development
assistance environment. No longer are governments, international
organizations and multilateral development banks the only assistance donors; nor
is Official Development Assistance the only source of funding for
international economic development. Rather, over the past 20 years a
growing number of new actors have arrived on the scene: NGOs, Private Voluntary
Organizations (PVOs), foundations, corporations, the higher education community
and even individuals are now providing development assistance. As a result, the
U.S. Government is not the only, or perhaps even the largest, source of American
funding and human resources being applied to the development challenge.
The GDA will be a fundamental reorientation in how USAID
sees itself in the context of international development assistance, in
how it relates to its traditional partners and in how it seeks out and develops
alliances with new partners. USAID will use its resources and expertise to
assist strategic partners in their investment decisions and will stimulate new
investments by bringing new actors and ideas to the overseas development arena.
USAID will look for opportunities where relatively small amounts of risk or
start-up capital can prudently be invested to generate much larger benefits in
the achievement of overall objectives. USAID will increasingly fill the role of
a strategic alliance investor, a role akin to that of a venture capital partner,
in the resolution of serious development issues. Unlike a venture capital fund,
however, the Agency will not try to establish equity positions or seek early
exits from the activities in which it invests. Sustained improvement over the
long haul will remain a prime objective. Of course, the Agency will continue to
deploy resources where private funding is not available and for activities where
the governmental role is clear and pre- eminent to stimulate institutional and
policy change.
In order to launch the GDA, a special
unit will be established to expand outreach into the private, for-profit and
not-for-profit sectors. To stimulate movement towards the Global Development
Alliance in its early years, USAID has identified $160 million in the FY 2002
request to be used to initiate the new business model and to help fund alliances
by Washington bureaus and/or field missions, with a view toward fully
integrating GDA concept into the three program pillars not later than FY 2004.
GDA is not expected to become a separate funding account.
The funds for initiating the GDA are proposed from the following
appropriations accounts: $110 million in Development Assistance (DA); $25
million in the Child Survival and Disease Program Fund (CS/D); and $25 million
in International Disaster Assistance (IDA). Uses will be consistent with
the authorized intentions of these accounts. Program Pillars
The three program pillars are part of the justification for the
proposed overall program level of $3.4 billion for USAID's directly- managed
programs, including food aid and excluding USAID's administrative expense
accounts and programs jointly managed with the State Department. Details on the
three program pillars follow.
The Economic Growth and
Agriculture Pillar ($928 million):
Assistance provided
under this pillar will work to create economies that are viable over the long
term. Special emphasis will be directed at integrating growth, agriculture and
environmental objectives and concerns in a manner such that "market forces" play
an increasingly important role in our strategic approach and in determining a
program's long-term viability. Activities funded will assist: the productive
sectors, especially agriculture; the environment and energy sectors; human
capacity development (including basic education);
micro-enterprises; and improvement of the business, trade, and investment
climate. The interrelationship and interdependence of economic growth,
environmental sustainability and the development of a country's human capital
will be highlighted in this pillar.
-- The request for
FY 2002 is $928 million compared to an equivalent figure of $871 million in FY
2001 (both including $28 million for the African and Inter-American Development
Foundations).
-- Given the importance of agriculture
and basic education (especially for girls and women) in most
recipient countries, USAID plans to increase its emphasis in these sectors.
The Global Health Pillar ($1.276 billion):
Under this pillar, USAID will group its programs related to maternal
and child health, nutrition, family planning and many of the related
transnational issues confronting the world, such as HIV/AIDS and other
infectious diseases. This budget includes a major initiative to combat
HIV/AIDS and other infectious diseases -- mainly malaria and tuberculosis
-- which have significant public health impact.
Child
survival interventions target the major childhood killers, including
vaccinepreventable diseases (e.g., polio), diarrheal disease, malnutrition,
acute respiratory infections, and malaria. USAID programs continue an aggressive
effort to eliminate vitamin A and other micronutrient deficiencies. Maternal
health activities aim to reduce maternal deaths and adverse outcomes as a result
of pregnancy and childbirth. In family planning, USAID programs seek to promote
family health and allow couples to achieve their desired family size. For
HIV/AIDS and infectious diseases, USAID will aggressively promote
public/private partnerships and provide technical leadership for programs at the
national and grass-roots levels.
The Global Health
programs are funded from the CS/D account with the exception of family planning,
which is currently financed from DA funds and other accounts. The FY 2002
request for Global Health, $1.276 billion, compares to an equivalent figure of
$1.259 billion in FY 2001 (both include $110 million in transfers to UNICEF).
-- The Global Health request for HIV/AIDS funding
has increased from $299 million in FY 2001 to $329 million to address more
effectively this major public health issue. The total amount available for
HIV/AIDS from all appropriated accounts, including ESF, is expected to be
$369 million.
-- The remaining $947 million is proposed
for child survival and other global health activities. These funds would support
efforts to improve maternal and child health and nutrition; reduce infant and
child mortality: support programs that promote family health, and allow couples
to achieve their desired family size. The total amount available for family
planning is $425 million, from all appropriated accounts.
The Conflict Prevention and Developmental Relief Pillar ($1.217
billion):
Given the rising number of collapsed states
and internal conflicts in the post-Cold War period, some of which have become
focal points of U.S. foreign policy, USAID will undertake a major new conflict
prevention, management, and resolution initiative. This initiative will
integrate the existing portfolio of USAID democracy programs with new approaches
to anticipating crisis, conflict analysis, comprehensive assessment, and will
provide new methodologies to assist conflicting parties resolve their issues
peacefully. This initiative will also address on-going efforts to bridge and
integrate foreign policy and foreign assistance in a way that accommodates both
short- term operational and longer-term structural prevention needs.
USAID continues to stand at the forefront of agencies
around the world in its ability to respond to man-made and natural disasters.
The budget request will enable USAID to maintain this capability (unique within
the United States) to provide needed help rapidly when international
emergencies occur.
-- The request for FY 2002 is $1.217
billion compared to an equivalent figure of $1.181 billion in FY 2001 (both
include PL 480 Title II at $835 million).
--
International Disaster Assistance funding increases from $165 million
(excludes the FY 2001 $135 million supplemental) to $200 million in recognition
of the increased demands generated by complex emergencies and natural disasters.
-- The request includes Transition Initiative funding of $50 million to meet
challenges in conflict-prone countries and those making the recovery from
crisis.
-- Democracy and Local Governance funding
continues at $132 million.
USAID Budget Accounts:
-- While the three program pillars embodied in USAID's new
strategic orientation are a valuable way to focus, manage, and report on
activities, they do not correspond neatly to the five program accounts for which
the agency is currently responsible.
-- The three
program pillars discussed above will be funded by the following five program
accounts: Child Survival and Disease Programs Fund; Development Assistance;
International Disaster Assistance; Transition Initiatives; and the
Development Credit Program, which is funded mainly through transfers from the
other accounts. In addition, USAID administers Public Law 480 Title II Food for
Peace programs.
Child Survival and Disease Programs
Fund (CSD):
-- The FY 2002 request is $1.011 billion,
compared to an equivalent figure of $961 million in FY 2001 (both include $110
million for UNICEF).
-- This account includes funding
for infectious diseases at $110 million; HIV/AIDS at $329 million; basic education at $110 million (with an additional $13 million
from DA); and $454 million for child survival and other health activities.
Development Assistance (DA):
--
The Administration's FY 2002 request is $1.325 billion, compared to an
equivalent figure of $1.302 billion in FY 2001 (both years include $28 million
for the Inter-American and African Development Foundations).
-- This account includes funding for agriculture at about $210 million;
micro-enterprise and improvement in business trade and investment climate
activities at $284 million; environment at $251 million; human capacity
development (non-basic education) at $52 million and basic education at $13 million; and family planning at $425
million, funded from DA and other appropriation accounts.
International Disaster Assistance (IDA):
-- The FY 2002 request of $200 million supports emergency relief and
transitional activities provided in response to natural and manmade disasters
and other emergencies often accompanied by the displacement of large numbers of
people. Transition Initiatives (TI):
-- The FY 2002
request of $50 million supports programs administered by USAID's Office of
Transition Initiatives. This office addresses the opportunities and challenges
facing conflict-prone countries and those making the transition from the initial
crisis stage of a complex emergency to a more stable political and economic
situation.
Development Credit Program (DCP):
-- For FY 2002, the Administration is requesting transfer
authority of up to $25 million from USAID program accounts for the newly
consolidated Development Credit Authority. This brings together various separate
Agency credit programs under one credit umbrella.
--
The change will allow USAID to use credit as a flexible development tool for a
wide range of development purposes and will increase the flow of funds to urban
credit and micro and small enterprise development programs.
-- In addition, $7.5 million is requested for administrative costs for
the consolidated authority. It is envisioned that all future agency credit
activities will be carried out under the reforms embodied in DCP regulations and
the Federal Credit Reform Act of 1992. This program augments grant assistance by
mobilizing private capital in developing countries for sustainable development
projects. DCP is not intended for sovereign risk activities.
USAID's Operating Expenses:
-- The FY 2002
request of $549 million will provide resources needed to maintain current
staffing levels associated with USAID's presence in key developing countries,
continue to build the Agency's information technology and financial management
capabilities, and strengthen staff capabilities through training.
-- These funds cover the salaries, benefits, and other
administrative costs associated with USAID programs worldwide, including those
managed by USAID and financed through Development Assistance, the Child Survival
and Disease Programs Fund, the Economic Support Fund, the Support for East
European Democracy Act, the Freedom Support Act, and P.L. 480 Title II Food for
Peace programs.
-- The request includes $7.5 million
for facility security where USAID is not co-located with embassies. There is
also a request of $50 million for co-located USAID facilities included in the
State Department's Embassy Security, Construction, and Maintenance request. Let
me move now to other bilateral economic assistance and discuss the Economic
Support Fund (ESF), Assistance for East Europe and the Baltic States (SEED), and
the FREEDOM Support Act.
Economic Support Fund (ESF)
(including International Fund for Ireland): ESF request of $2.289 billion
supports the economic and political foreign policy interests of the United
States. Highlights of the FY 2002 request include:
Near
East - $1.682 billion to continue restructuring assistance levels in the Middle
East and promote regional stability and a comprehensive peace between Israel and
her neighbors. Funding includes $720 million for Israel. $655 million for Egypt,
$150 million for Jordan, and $75 million for the West Bank and Gaza. In
addition, the FY 2002 request provides funding for the Iraqi opposition and for
programs that support U.S. efforts to strengthen regional cooperation, promote
democracy and civil society, and encourage economic growth and integration
through increased trade and market-oriented reforms.
Europe - $39.6 million, including $15 million for Cyprus and $19.6
million for the International Fund for Ireland, as well as $5 million for
the third and final year of a program to bring youths from Northern Ireland and
designated disadvantaged areas to the United States as outlined in the Irish
Peace Process Cultural and Training Program Act of 1998.
Western Hemisphere- $170.5 million, including $54.5 million for
democratic institution building and economic growth programs in Peru, Ecuador.
Bolivia, Venezuela, and Panama under an Andean regional initiative; $21 million
for earthquake assistance in El Salvador; $5 million for Cuban democracy
programs: $11 million for Eastern Caribbean stabilization; $35 million for
humanitarian NGOs in Haiti; $10 million for reform in Mexico; $10 million for
Administration of Justice throughout the region; $15 million to support the
Ecuador/Peru border and Guatemala peace processes; and $9 million for other
regional democracy-building programs.
Africa- $105.5
million, including $25 million to assist Nigeria in rebuilding its democratic
institutions; $20 million to support countries in transition, especially those
countries emerging from conflict; $15 million to support the Education for
Development and Democracy in Africa program, with an emphasis on girls'
education; $15 million for regional initiatives, including democracy programs;
$10 million for the Africa Great Lakes Initiative designed to build credible and
impartial civilian and military justice systems in the region; $9 million for
Sierra Leone to help fund a special court and rebuild infrastructure; $2.5
million for Ethiopia/Eritrea to assist in efforts to recover from the war; $2
million to strengthen civil society and lay the foundation for political
institutions, democratic reform, and good government in Angola; and other
programs designed to foster African integration into the global economy, enhance
the safety and reliability of air transport on the continent, and support
conflict management and prevention.
East Asia - $169.75
million, including $50 million to support democratic and economic strengthening
in Indonesia; $25 million for East Timor's transition to independence; $25
million for humanitarian, justice, and democracy programs in Cambodia: $15
million for anti- corruption and peace-promoting programs in the Philippines;
$14 million for South Pacific Fisheries Treaty commitments: $12 million for
democracy and free market support in Mongolia; $5 million for Rule of Law
programs in China: and other programs that support democracy promotion, regional
environmental initiatives, regional women's issues, and economic technical
assistance.
South Asia - $30 million, including $7
million to fund programs in India to promote judicial reform and rule of law and
address the growing problem of trafficking and forced labor of women and
children; $7 million in Pakistan to help restore democratic institutions and
build civil society; $3 million each in Bangladesh, Sri Lanka, and Nepal to help
combat child labor and violence against women and promote democracy and judicial
reform, human rights commissions, and civil society participation in local and
national government; and $7 million to fund programs to promote regional energy
cooperation and use of clean energy technologies, help eliminate cross-border
trafficking in women and children, and fund projects promoting cross- border
confidence-building measures between the civil societies of India and Pakistan
and among elements of societies struggling with strife in Afghanistan, Nepal,
and Sri Lanka.
Oceans, Environmental, and Science
Initiative - $4 million for environmental diplomacy activities. These funds will
be used for targeted activities in support of ongoing international
negotiations on global environmental issues including climate change;
biodiversity; the production, use, and trade of hazardous chemicals; and
numerous bilateral and regional fisheries and oceans negotiations. Funds will
also be used to support regional cooperation efforts and respond to emerging
environmental crises and priorities.
Human Rights and
Democracy Funds - $13.5 million to respond to emergencies to prevent or
forestall further human rights abuses; to exploit unanticipated opportunities to
promote democracy; to help establish institutions that serve human rights and
democracy efforts, especially those that address concerns raised in the Human
Rights Reports; and to support multilateral initiatives that respond to human
fights or democratization opportunities.
Innovative
Partnerships to Eliminate Sweatshops - $5 million to continue funding for NGOs,
labor unions, and corporate groups to support the promotion of core labor
standards, model business principles, and monitoring of labor conditions. The
program is targeted at eliminating sweatshop conditions in overseas Factories
that produce or sell consumer goods for the American market. Policy Initiatives
- $69 million designated for policy initiatives of the new Administration.
Assistance for East Europe and the Baltic States
(SEED):
-- The Support for East European Democracy
(SEED) Act is the foundation for U.S. assistance to Eastern Europe and the
Baltic States. SEED is a transitional program designed to assist those countries
through their difficult passage to democracy and a market economy. The FY 2002
SEED request is $610 million.
-- For FY 2002, the SEED
request includes $145 million for the Federal Republic of Yugoslavia. These
funds will be used in both the Republics of Serbia and Montenegro to support
economic reform and promote democracy and civil society by assisting judicial
reform, independent media, NGOs, and local government. In Southern Serbia,
continued support is needed for community development projects designed to
reduce ethnic tensions.
-- The request for Kosovo is
$120 million. These funds will further implementation of UNSC 1244 by supporting
security (including the U.S. contingent to UNMIK police), democratization, and
respect for human rights and rule of law. The United States is completing its
emergency assistance programs and is now focusing on longer-term development
goals such as building transparent economic and political institutions and a
strong private sector.
-- The increase for Macedonia to
$45 million will help the government move more rapidly in bringing the benefits
of democracy to all of the country's citizens. Funds will target efforts to
decentralize the government and allow a broader range of Macedonians to play a
direct role in building their society. Economic programs will promote a
strengthened private sector to extend prosperity to the wider populace. Finally,
additional resources will support ongoing programs that promote inter-ethnic
harmony and strengthen the fabric of civil society.
--
Funding for the Bosnia-Herzegovina program is $65 million, down from $100
million in FY 2000 and $79.8 million in FY 2001. This decrease reflects progress
on the political commitments under the Dayton Peace Accords and the fact that
Bosnians are taking on a greater role in managing their own affairs. The
remaining reconstruction effort will focus on encouraging returns of dispersed
minorities, which have increased in recent years.
Eight
of the 15 original SEED countries have graduated, and USAID missions there have
been closed. Regional funding, at reduced levels, continues for Northern Tier
countries to help ensure the success of their transitions and to meet limited
special or emergency needs.
-- In Southeast Europe,
SEED-funded regional programs help build stability by fostering cooperation
among neighboring countries in key areas such as good governance and
anti-corruption, the fight against organized crime and smuggling, and developing
cross-border solutions for energy, transportation, and pollution.
Assistance for the Independent States of the Former Soviet
Union (FREEDOM Support Act, or FSA):
-- The FY 2002
request for the FREEDOM Support Act (FSA) for the New Independent States (NIS)
totals $808 million.
-- This request sets aside funding
in the regional account to support a settlement of the Nagorno-Karabakh
conflict. These funds will enable the U.S. to contribute to post-settlement
reconstruction in Azerbaijan and Armenia as part of a coordinated
international donor effort.
-- This budget
directs a larger share of funds than last year towards promoting change at the
grassroots of NIS societies, by supporting exchanges that bring NIS citizens -
including large numbers of young people - to the United States for first-hand
exposure to our system; strengthening NGOs: increasing Internet access: and
aiding pro-reform regional and local governments. With freedom of the press
under threat in most countries of the region, emphasis will be placed on
programs that support the independence and viability of the media. Support will
also be continued for law enforcement cooperation to combat organized crime and
corruption.
-- Several of the NIS are now experiencing
economic growth for the first time. To help sustain this growth, FSA programs
will support small and medium-sized private businesses through training,
exchanges, and greater access to credit. Technical assistance to central
governments will be limited, focusing on those countries that show the greatest
commitment to economic reform. In Russia, Kazakhstan, and Ukraine, funds will
support initiatives designed to facilitate growth in pro-reform regions.
Programs will also support U.S. investment and trade throughout the NIS.
-- FSA programs will address some of the most serious
socio-economic problems in the NIS, particularly in the fields of health,
nuclear safety, and the environment. Health programs will include hospital
partnerships and efforts to combat infectious diseases and improve maternal
health. Resources devoted to humanitarian assistance will help mitigate the
suffering caused by poverty, natural disasters, and regional conflicts.
-- The potential proliferation of weapons of mass
destruction (WMD) remains a significant threat in the NIS. To address this
threat, the request funds several programs aimed at channeling WMD expertise in
the direction of civilian research and development of new technologies.
-- The FSA-funded Export Control and Border Security
Program will continue to strengthen the ability of NIS countries to prevent
illegal cross-border movements of narcotics, arms, and WMD materials. This
program also enhances regional stability by helping several countries in the
region better maintain their territorial integrity in the face of terrorist
threats and border zone conflicts. FSA funds will also facilitate the removal of
Russian troops and military equipment from Moldova and Georgia.
Debt Restructuring:
Let me turn briefly to a
program that had broad congressional bipartisan support last year, debt
restructuring:
-- For FY 2002, the Administration is
requesting $224 million for the Heavily Indebted Poor Countries (HIPC) Trust
Fund to provide multilateral debt relief. This fund helps regional multilateral
development banks, such as the African Development Bank and Inter- American
Development Bank. meet their costs of HIPC debt reduction.
-- In 1999, the United States committed to a $600 million contribution
to the HIPC Trust Fund. In FY 2001, $360 million was appropriated for this
purpose. The FY 2002 request of $224 million, combined with $16 million in
previously appropriated but unexpended debt account balances, will fulfill the
U.S. commitment in full and leverage participation from others.
-- For FY 2002, the Administration is not requesting any funding to
provide bilateral debt relief under the Tropical Forest Conservation Act of 1998
(TFCA). However, the request does include authority to transfer up to $13
million from USAID's Development Assistance account for debt relief under this
program. The Administration may also use carryover funds from the Debt
Restructuring account for TFCA implementation.
International Narcotics Control and Law Enforcement (INCLE):
Mr. Chairman, we are profoundly concerned about the recent
shootdown of a civilian aircraft by the Peruvian Air Force and the tragic deaths
of an innocent woman and her child, as well as the injury of another civilian
and the destruction of private property. A full investigation is underway. We
will work with the countries in the area to do all that we can to prevent any
such tragedy in the future. Meanwhile, however, our counter narcotics effort
will remain robust:
-- The FY 2002 request includes
$217 million for base programs of the Bureau of International Narcotics
and Law Enforcement (INL).
-- The request provides $162
million to support counter-narcotics programs outside of the Andean region.
These INL programs will grow 30 percent worldwide. They include regional
programs for Latin America, Asia, and the Middle East; participation in the UN
Drug Control Program and other international organizations'
counter-narcotics efforts; and increased support for drug awareness and demand
reduction. -- The request also provides $55 million for programs to counter
transnational crime, including trafficking in women and children - an increase
of 22 percent. These programs include establishing a center to counter
international migrant smuggling/trafficking in persons: continuing
support of a Civilian Police Contingent for deployment as part of
international relief efforts in post-conflict situations; an African
regional anti-crime program, focused particularly on Nigeria and South Africa;
and support to five International Law Enforcement Academies.
Andean Counterdrug Initiative (ACI):
-- As part of an overall Andean regional initiative, the FY 2002
request includes $731 million for ACI, a multi-year counterdrug assistance
effort designed to sustain and expand programs funded by the Plan Colombia
emergency supplemental. ACI differs from Plan Colombia in several respects. ACI
triples - to 45 percent - the share of counter-narcotics assistance going to
countries other than Colombia. ACI increases to 40 percent the amount of INCLE
funding going to social and economic programs, exclusive of other economic
assistance accounts. Finally, ACI funding will be augmented from other accounts
to support reforms directed toward strengthening democracy and economic
growth.
-- FY 2002 funding for ACI includes Colombia,
Peru, Bolivia, Ecuador, Brazil. Venezuela, and Panama.
-- Combined with Plan Colombia, ACI will make a significant, immediate
impact on the flow of narcotics out of the Andes. The Administration's
performance goals specifically include: (1) achieving a 30 percent reduction in
Colombian coca production between CY 2000 and the end of CY 2002; and (2)
eliminating all illicit coca production in Bolivia by the end of CY 2002.
-- ACI will support Colombia's push into the former
coca-growing sanctuaries in Putumayo by backing joint operations between the
Amy's new, air mobile counter-narcotics (CN) brigade and the Colombian National
Police's anti-narcotics unit (DIRAN). It will also support alternative
development and assistance to internally displaced persons, maritime and aerial
interdiction, the Colombian National Police's aerial eradication program with
additional spray aircraft, and human rights and judicial reform in Colombia.
-- Additional support for the Andean regional initiative
is being provided through Economic Support Funds and Foreign Military Financing.
Development Assistance and Child Survival and Diseases accounts will also
support this initiative.
Migration and Refugee
Assistance (MRA): Mr. Chairman, the FY 2002 request for MRA is $715 million, as
follows:
-- The request includes $509 million for
Overseas Assistance. This amount will support the protection of refugees and
conflict victims, the provision of basic needs to sustain their life and health,
and the resolution of refugee problems through durable solutions. It will also
provide funding for the focused "Up to Standards" initiative targeted on health
and health-related problems that appear to have the greatest impact on refugee
mortality/morbidity rates.
-- The FY 2002 request for
Refugee Admissions is $130 million. This $20 million increase over the FY 2001
level reflects a grant increase in the Reception and Placement program and the
fact that $14.7 million appropriated in FY 2000 was available for Admissions in
FY 2001.
-- The request for refugees to Israel is $60
million - the same amount appropriated in FY 2002, prior to the rescission.
-- The request for Administrative Expenses is $16 million
- an increase of $1.5 million from the FY 2001 level. This level will support
the full-year salaries and operating costs associated with a staff of 110
positions. The increase includes funds to cover full-year support costs of
several refugee coordinator positions to be established at the end of FY
2001.
In addition to the MRA funding request, we are
asking for $15 million to replenish the U.S. Emergency Refugee and Migration
Assistance Fund. This request will preserve the President's ability to respond
to unforeseen and urgent refugee and migration needs worldwide.
Nonproliferation, Anti-Terrorism, Demining, and Related Programs
(NADR): NADR request includes a total of $332 million, broken out as follows:
-- $14 million for the Nonproliferation and Disarmament
Fund (NDF), a contingency rapid-reaction fund which can meet unanticipated
challenges and disperse funds quickly in support of urgent nonproliferation
objectives.
-- $17 million for Export Control
Assistance designed to provide training and equipment to establish or enhance
export control systems. Funds support programs in Russia and the NIS, Central
and Eastern Europe, and key transit states worldwide.
-- $37 million for the Science Centers to prevent former Soviet weapons
experts in Russia, Ukraine, and the other NIS countries from emigrating to
proliferant states by financing civilian research. It has redirected tens of
thousands of NIS WMD/missile scientists to peaceful pursuits and remains a key
component of U.S. nonproliferation policy. -- $49 million for voluntary
contributions to the International Atomic Energy Agency (IAEA) to support
effective implementation of strengthened nuclear safeguards measures and growth
in the area of nuclear inspections. The $2 million increase will fund safeguards
technology development relevant to verifying North Korea's initial nuclear
inventory.
-- $20 million for the Comprehensive Nuclear
Test Ban Treaty (CTBT) Preparatory Commission to pay the U.S. share of costs for
the ongoing work of the Provisional Technical Secretariat, including development
and implementation of the international monitoring system (IMS) to detect
nuclear explosions.
-- $95 million for the U.S.
contribution to the Korean Peninsula Energy Development Organization (KEDO) for
administrative costs and heavy fuel oil (HFO) purchases in FY 2002. KEDO is
responsible for implementing elements of the Agreed Framework between the United
States and the Democratic People's Republic of Korea (DPRK) by financing and
constructing light water reactors in North Korea and by providing annual
shipments of heavy fuel oil to the DPRK until completion of the first light
water reactor. The requested increase reflects a near doubling of the price of
HFO on world markets.
-- $38 million for the
Anti-Terrorism Assistance (ATA) program to meet the widening and continuing
terrorist threat. Funds will support ongoing core ATA programs. develop new
courses (including a new cyberterrorism course), increase training to select
Balkan and Central Asian states, and initiate an energy security-related
training program in the Caspian region. The request also includes $2 million to
continue the Weapons of Mass Destruction (WMD) Preparedness Program, which is
designed to help foreign government officials and "first responders" manage
terrorist incidents involving weapons of mass destruction. Funds will support
policy workshops with senior host government officials and "first responder"
training for hazardous material personnel, paramedics, and other security
personnel who would be on the front lines dealing with an actual incident.
-- $4 million for the Terrorist Interdiction Program to
support the third year of a multipronged border security program designed to
assist selected vulnerable countries in stopping terrorists from crossing their
borders or using their territory as transit points or staging areas for attacks.
Funds will support installation of an integrated personal identification
database system and associated training for about five countries in East Asia,
Africa, Europe, and the Middle East. A small amount of funds will also help
upgrade INTERPOL's communications system to complement the database network.
-- $16 million contribution toward the incremental cost of
holding in the Netherlands the trial for the 1988 bombing of Pan Am Flight 103
over Lockerbie, Scotland.
-- $40 million for the
Humanitarian Demining program, which supports a wide range of humanitarian mine
action initiatives in nearly 40 countries around the globe. The program's
emphasis is on mine clearance, surveys, and mine awareness, although some funds
are provided for training and special projects that indirectly benefit
mineaffected nations.
-- $2 million to support the
second year of the Small Arms Destruction initiative, which is designed to
eliminate stockpiles of excess small arms and light weapons left over from Cold
War and post-Cold War conflicts, particularly in Eastern Europe, Central Asia,
Latin America, and Sub-Saharan Africa.
Military
Assistance:
Mr. Chairman, the Military Assistance
portion of the President's budget request includes IMET, FMF and PKO, as
follows:
International Military Education and
Training (IMET):
-- The Administration is requesting
$65 million for IMET in FY 2002.
-- IMET encourages
mutually beneficial relations and increased understanding between the U.S. and
foreign militaries to help create a more stable and secure world community.
Through more frequent and wide-ranging contacts, IMET promotes a shared set of
values and a common approach to conflict resolution.
--
The increase over the FY 2001 level will allow additional personnel to enroll in
courses offered on professional military education; military operations, with
such subjects as tactics, strategy, and logistics; and technical training, such
as aircraft maintenance. Approximately 2,000 courses are available for over
9,000 students at 150 military schools and installations.
-- In addition, special courses - known as Expanded IMET (E-IMET) - are
designed to promote greater respect for and understanding of the principle of
civilian control of the military, democratic values, and military justice
systems that protect internationally recognized human rights.
Foreign Military Financing (FMF):
-- The
Administration is requesting $3.674 billion for FMF in FY 2002, including:
-- $3.4 billion for Israel, Egypt, and Jordan military
assistance programs.
-- $39 million to support NATO's
newest members - Poland, Hungary, and the Czech Republic - and $97.5 million to
strengthen cooperation with Partnership for Peace (PFP) partners in Central
Europe, the Baltics, and the New Independent States. Requested funds will help
support new and ongoing programs to help meet Membership Action Plan goals and
objectives and enhance interoperability with NATO.
--
$22 million for the East Asia and Pacific region. The majority of these funds
will support a multi-year FMF program for the armed forces of the Philippines to
sustain crucial military capabilities while promoting clear and positive action
to correct significant budgetary and logistical deficiencies. Other funds for
this region include continued funding to provide Mongolia robust communications
equipment to help respond to security threats along its border and $1 million to
help support a new East Timor Defense Force.
-- $18
million for countries in the Western Hemisphere to help support the capabilities
of militaries engaged in drug interdiction, search and rescue, and
anti-smuggling operations, and help sustain small professional forces essential
to regional peace and security. Funds will also aid in increasing the
capabilities of key countries that participate in worldwide peacekeeping
operations such as Chile. Argentina. Bolivia, and Uruguay, and provide
assistance to help Andean and Central American countries counter the
"spill-over" security problems caused by the effective implementation of Plan
Colombia.
-- $19 million for the Africa region. These
funds will aid in the reform and modernization efforts of the Nigerian
military, enhancing its role in Nigeria's transition to democracy and supporting
participation in UN peacekeeping operations. Funds will also support South
African airlift capabilities and military reform efforts. The Africa Regional
Stability account consolidates regional African requirements that will permit
greater flexibility to respond to developing situations in countries such as
Ethiopia and Eritrea and selectively support militaries that are willing to
support humanitarian and peacekeeping operations.
-- $8
million for the Enhanced International Peacekeeping Initiative to provide
assistance to key countries to improve their peacekeeping capabilities with an
emphasis on peacekeeping doctrine and education, training, and communications
systems. This program will create a bigger pool of potential peacekeepers,
thereby reducing dependence on U.S. forces.
-- $10
million designated for Policy Initiatives of the new Administration.
-- $35 million for Department of Defense (DOD) costs for
the successful administration of global grant military assistance programs. The
$2.2 million increase above the FY 2001 level is needed to cover costs in
support of security assistance offices overseas.
Peacekeeping Operations (PKO):
-- The
Administration is requesting $150 million for PKO in FY 2002. -- PKO funds are
designed to advance international support for voluntary multinational
efforts in conflict resolution, including support for international
missions in response to crises around the world. These funds promote involvement
of regional organizations and help leverage support for multinational efforts
where no formal cost- sharing mechanisms exist. The budget includes:
-- $20 million for the African Crisis Response Initiative,
which represents final funding for this multi-year program.
-- $54.6 million for Organization for Security and Cooperation in
Europe (OSCE) peacekeeping activities in the Balkans and OSCE preventive
diplomacy missions elsewhere in Europe and the NIS.
--
$16.4 million to continue the Administration's commitment to the Multinational
Force and Observers (MFO) in the Sinai.
-- $8 million
to continue support for U.S. Civilian Police (CIVPOL) assigned to the UN
Transitional Administration in East Timor (UNTAET) mission.
-- $51 million for Africa Regional Peacekeeping Operations, an account
that consolidates numerous peacekeeping needs on the African continent. These
include assisting the Economic Community of West African States (ECOWAS) and
other African countries that are committed to providing peacekeeping troops in
support of the United Nations Mission in Sierra Leone (UNAMSIL) and supporting
the Joint Military Commission's (JMC) efforts in maintaining the peace in the
Democratic Republic of the Congo and the Organization of African Unity's (OAU)
efforts in support of military observers in Ethiopia and Eritrea.
Multilateral Development Banks (MDBs) and
International Organizations and Programs (IO&P):
Mr. Chairman, the President is seeking the following funding for the
multilateral development banks (MDBs):
-- The FY 2002
request provides $1.210 billion for scheduled annual U.S. commitments to MDBs.
The banks lend to and invest in developing economies and private sector
enterprises in countries where risks are too high for private financing alone
and where leverage is needed to spur private financing.
-- Bank policies and lending programs reflect U.S. priorities in
promoting growth and poverty reduction in developing countries. These include
financial sector reforms, anti-corruption measures, core labor standards
practices, private sector development, and environmental management.
-- The Global Environment Facility provides grants and
arranges financing for projects that address environmental management problems
with global implications in developing countries. -- MDBs support U.S. foreign
policy initiatives in Eastern Europe and the former Soviet Union, Latin America,
Asia, Africa, and the Middle East.
-- At the end of FY
1997, U.S. arrears to the MDBs totaled $862 million. But by the end of FY 1999,
arrears were reduced to $335.3 million. FY 2000 and FY 2001 appropriations
resulted in overall arrears increasing to their current level of $498.6 million.
Since the Administration is not requesting any funding for arrears in FY 2002,
it is important that the regular commitment request be fully funded in order to
avoid any further increases in arrears.
And the
following funding for IO&P --
-- The FY 2002
request of $186 million provides U.S. voluntary contributions to
international organizations and programs to help address global
challenges through international cooperation.
--
The total includes funding for the UN Development Program that coordinates UN
development assistance to build countries' indigenous capacities to achieve
sustainable development ($87.1 million); the UN Population Fund that provides
critical population assistance to developing countries and countries with
economies in transition ($25 million); and the World Trade Organization ($1
million), supporting technical assistance and capacity building related to the
world trading system.
-- The request also includes $25
million for a contribution to the Montreal Protocol Multilateral Fund that helps
developing countries use substitutes for ozone layer-depleting substances;
$10.75 for the UN Environment Program (UNEP Fund/UNEP-related); and other
contributions to international conservation programs addressing issues
such as international forest loss and biological diversity.
-- Funds will be also be used to promote democracy and
provide humanitarian assistance worldwide. Specifically, they will provide U.S.
contributions to UN voluntary funds for torture victims and human rights; to the
Organization of American States (OAS), supporting development assistance and
efforts to strengthen democracy in the hemisphere; and to the World Food Program
($5.4 million).
And now, Mr. Chairman, let me turn to
export financing:
Export-Import Bank:
-- The Administration is requesting $633 million for Export-Import
Bank's loan and guarantee programs and $65 million for the bank's operations in
FY 2002.
-- These funds will assist American businesses
in sustaining U.S. jobs by increasing exports, thus stimulating economic growth
and job creation in the United States. -- The FY 2002 request proposes a 25
percent decrease in the bank's program resources, in part to reflect lower
estimates of international lending risk. Within this level, Export-Import
Bank will continue to serve exporters facing subsidized competition, as well as
small and medium-sized enterprises.
-- The increase for
administrative expenses will, among other things, enable the bank to modernize
its computer infrastructure to provide better service to the exporting
community.
Overseas Private Investment Corporation
(OPIC):
-- In FY 2002, OPIC-generated revenue from its
private sector users and other sources will allow OPIC to make a contribution of
approximately $251 million in net negative budget authority to the
International Affairs budget.
-- The
Administration is requesting the authority for OPIC to spend $38.6 million for
administrative expenses. In keeping with OPIC's mandate to operate on a
self-sustaining basis, this funding will come from OPIC user fees and earned
income.
-- The Administration is not requesting credit
funding for OPIC in FY 2002. OPIC anticipates that sufficient unobligated
amounts from the corporation's FY 2001 appropriation of two-year funds will
remain available to support new direct loans and loan guarantees in FY 2002.
-- In FY 2002, OPIC will continue to support the
Administration's priorities for investment in such areas as Southeast Europe,
Sub- Saharan Africa, Central America, the Caribbean, the Middle East, and the
Caspian region. OPIC will continue also to emphasize activities and products
that increase participation in its programs by American small businesses.
-- Since 1971, OPIC has supported $138 billion worth of
investments, generating over $63 billion in U.S. exports and creating or
supporting nearly 250,000 American jobs.
Trade and
Development Agency (TDA):
-- TDA assists in the
creation of jobs for Americans by helping U.S. companies pursue overseas
business opportunities. Through the funding of feasibility studies, orientation
visits, specialized training grants, business workshops, and various forms of
technical assistance, TDA helps American businesses compete for infrastructure
and industrial projects in emerging markets.
-- The FY
2002 budget request of $50 million will enable TDA to continue to strengthen its
core regional programs and help U.S. firms compete against heavily subsidized
foreign competition. In particular, TDA has witnessed impressive growth in
demand for its Asian, Eastern European, and African programs. While meeting this
increased demand, TDA's FY 2002 program priorities include expanding its High
Tech Initiative in the areas of financial services technologies and emergency
management.
-- Every dollar TDA invests is associated
with $40 in U.S. exports, estimated to total close to $17 billion since the
agency was established in 1980.
And finally, Mr.
Chairman, the FY 2002 budget request provides $275 million to permit the Peace
Corps to continue its role as the leading international service
organization engaged in grass-roots development. The increase of $10.6 million
will enable the Peace Corps to continue support of its approximately 7,000
volunteers. This money will permit enhanced security measures for overseas staff
and volunteers and will allow completion of information technology initiatives
in support of volunteers.
There are of course more
details to the President's FY 2002 budget request for international
affairs. I invite the members' attention to an excellent Department of State
pamphlet entitled "Summary and Highlights: International Affairs Function
150 - Fiscal Year 2002."
Document 48 of 61. 