DEPARTMENT OF STATE AND INTERNATIONAL
ASSISTANCE PROGRAMS
DEPARTMENT OF STATE AND INTERNATIONAL
ASSISTANCE PROGRAMS
AT A GLANCE:
2006 Discretionary Budget Authority (State): $13.3 billion
(Increase from 2005: 18 percent)
2006 Discretionary Budget Authority (International Assistance
Programs): $18.5 billion
(Increase from 2005: 14 percent)
Major Programs:
• Diplomatic activities and operations of embassies
• International assistance, including economic
development, child health, and military financing
• U.S. contributions to international organizations
MEETING PRESIDENTIAL GOALS
Protecting America
• Supporting Iraq and Afghanistan as they continue their transition to democracy and rule of law.
These activities will contribute to the long-term security of America and the world.
• Assisting key partners in theWar on Terror, including Turkey, Jordan, Pakistan, Indonesia, and
the Philippines.
• Improving peacekeeping capabilities through the Global Peacekeeping Operations Initiative and
strengthening reconstruction and stabilization capabilities.
• Stemming the flow of illegal drugs around the world through counternarcotics activities in the
Andean region of South America and in Afghanistan.
• Fostering democracy and freedom throughout the world through bilateral programs as well as
through the activities of the National Endowment for Democracy and the Broadcasting Board
of Governors.
Promoting Economic Opportunity and Ownership
• Stimulating economic growth and development in countries which honor basic human rights,
invest in the education and health of their citizens, and promote free markets, through the
Millennium Challenge Account.
217
218 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
MEETING PRESIDENTIAL GOALS—Continued
• Working with the Multilateral Development Banks to pool the contributions of many donors to
assist developing countries with positive growth policies.
• Providing keys to economic growth and lasting democracy in the developing world through
education initiatives.
• Bringing developing countries out of poverty while creating job opportunities for Americans by
reducing barriers to free trade. The Budget anticipates implementation in 2006 of free trade
agreements with five countries of Central America and the Dominican Republic, Bahrain, and
Panama, as well as continued progress on free trade agreements with countries in Asia, Africa,
and the Americas.
Supporting a Compassionate Society
• Continuing to expand the President’s Emergency Plan for AIDS Relief with an unprecedented
effort to prevent the spread of AIDS, treat infected individuals, and care for those affected by
HIV/AIDS, including orphans.
• Providing for vulnerable populations around the world, through food aid and other humanitarian
assistance such as shelter, health care, water, sanitation, and disaster and reconstruction
assistance.
• Maintaining a generous refugee resettlement program while providing needed humanitarian
assistance to those awaiting return to their homeland.
Making Government More Effective
• Ensuring that the composition of U.S. Government agencies and personnel overseas is
appropriately aligned with our foreign policy priorities, security concerns, and overall resource
constraints, through the President’s initiative to “rightsize” the U.S. Government’s presence
overseas.
THE BUDGET FOR FISCAL YEAR 2006 219
PROTECTING AMERICA
With critical funding from the United States, voter registration and
elections are conducted in Afghanistan.
Winning the War on Terror is the highest
foreign policy priority of this Administration.
In support of that objective, programs in the
Department of State and related international
affairs agencies are directed at assisting the development
of freedom, democracy, and economic
opportunity in Iraq and Afghanistan; providing
support to our coalition partners; improving
the peacekeeping capabilities of other nations;
and encouraging the spread of democracy
and freedom necessary to thwart terrorism’s
advance.
Promoting Global Democracy
Promoting democracy and freedom around the
world is fundamental to peace and security at home. The Budget includes a further expansion of our
current bilateral programs to strengthen democratic institutions worldwide and new efforts, such as
a contribution to the United Nations Democracy Fund, which was announced by President Bush at
theUnitedNations General Assembly in September 2004. The Fund will provide technical assistance
to nations adopting democratic reforms.
In particular, the United States is committed to supporting the peoples of Iraq and Afghanistan in
their historic quest for freedom and democracy. Our mission in these sovereign nations is to promote
stability, security, and prosperity to ensure that they never again are ruled by regimes that oppress
their citizens and support terrorism.
Creating a Stable Iraq. Iraqis, with help from the Coalition and many partners, are rebuilding
their country and offering freedom, new opportunities, and much needed services to their people.
While security problems remain a major challenge for the Iraqi people and for development in various
parts of the country, significant progress has been made in many key areas.
The Iraqi Interim Government, led by Prime Minister Allawi, demonstrated resolve and a clear
commitment to Iraq’s transition to democracy, including free and fair elections to establish a more
representative government. The new Iraqi currency is stable and has appreciated against other currencies.
Oil revenues for the Iraqi people since June 2003 are estimated at over $20 billion. Iraq’s
own security and police forces are being rapidly expanded, trained, and equipped so that Iraq can
protect its own people and its borders.
Assistance from the United States and other countries will continue to have an impact. With key
infrastructure projects underway across Iraq, millions of Iraqis will benefit from greater access to
basic services. The United States will continue to help the Iraqi government deliver basic services to
its people, collect revenues, and develop a free market system capable of joining the global economy.
The 2006 Budget provides $360 million for economic assistance to Iraq for these activities.
220 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
PROTECTING AMERICA—Continued
The paving of the Kabul Kandahar road in Afghanistan.
Supporting Democracy in Afghanistan. On
December 7th, 2004, the first democratically
elected Afghan President was inaugurated,
following the first free and fair election in
Afghanistan’s history. The economy grew 16
percent during the last Afghan fiscal year,
2003–2004, and the new Afghan currency
has remained strong. The lives of Afghans,
especially those of women and children,
continue to improve, and 2.4 million refugees
have returned home. Today over 40 percent
of primary school students are girls, up from
virtually zero under the Taliban, and overall
enrollment for boys and girls has increased
by over 300 percent. The new Afghan National Army is now fighting terrorism and maintaining
security with a force of 16,000 soldiers and support personnel that includes all of Afghanistan’s
ethnic groups, and over 33,000 Afghan police that have been trained and equipped.
With U.S. aid and the contributions of other nations, the Afghan government will continue to build
the necessary capacity to deliver health services, collect tax and customs revenue, and develop the
legal and regulatory framework for a modern, open economy.
The 2006 Budget requests nearly $1.1 billion to build on the positive momentum in Afghanistan.
This Budget will provide funds to invest in the health, education, clean water, and free market infrastructure
that create conditions for sustained growth and stability; and eradicate poppy crops,
develop alternative livelihoods, interdict drug flows, and prosecute narco-traffickers to ensure that
the drug trade does not threaten Afghanistan’s democracy or undermine economic development.
Border Security. The Department of State continues to work with the Department of Homeland
Security (DHS) to secure America’s borders against those who threaten our security, and at the same
time, the Department works to promote legitimate travel for commerce, education, and tourism.
The Department of State is improving the visa and passport systems to make America safer.
The State Department, working jointly with DHS, is developing secure visas and passports, which
will provide reliable ways to link travel documents to their owner. In addition, the Departments
of State and Homeland Security are gathering biometric identifiers—such as digital photos and
fingerprints—from visa applicants and conducting security checks to verify travelers’ identities
when they enter and exit the United States.
The State Department is a key player in the effort to integrate databases as well as an important
contributor to the Terrorist Screening Center and the National Counter Terrorism Center. These
centers integrate and analyze terrorist threat information, collected both domestically and abroad,
to detect, identify, and interdict people who may pose a threat to America.
The Broader Middle East and Muslim Outreach Initiatives. Expanding democracy, supporting political,
economic, and social reform, and improving access to education, information, and jobs are
critical to eradicating international terrorism. The 2006 Budget continues to enhance diplomatic
and assistance activities in the Middle East, North Africa, and other majority Muslim countries.
The Budget includes $120 million for the Middle East Partnership Initiative, a cornerstone of the
President’s strategic approach to supporting economic, political, and social reform in the region.
THE BUDGET FOR FISCAL YEAR 2006 221
Broadcasting to the Middle East
In 2006, the Broadcasting Board of Governors (BBG) will have nearly quadrupled the number of broadcasting
hours to the broader Middle East from approximately 13,000 hours per year in 2001 to over 50,000
hours per year. In particular, the BBG established two 24/7 Arabic-language television channels (al-Hurra
and al-Hurra Iraq) in 2004 that complement the success that Radio Sawa has had in attracting a significant
audience for U.S.-developed broadcasts in the region. Surveys from 2004 show that 25 percent of adults
in nine Middle Eastern countries tune into Radio Sawa and/or al-Hurrah television each week, and approximately
75 percent consider their news reliable. In 2006, the BBG will continue local and live news coverage
through satellite and land-based transmission of Radio Sawa and al-Hurra television.
The Budget also includes $80 million for the National Endowment for Democracy (NED), an
increase of $20 million over 2005 levels. NED provides grants to private groups and organizations
that build and strengthen democratic institutions, and promote the rule of law, human rights, civic
education, and a free press.
A wide range of public outreach, diplomacy, and broadcasting initiatives are being pursued at the
State Department and at the Broadcasting Board of Governors (BBG) in the 2006 Budget. Funding
in 2006 will support the development of libraries and information centers in the Muslim world
called American Corners; support the TV Co-Op program, which brings foreign journalists to the
United States and facilitates their professional development and assists in the production of their
own programming related to American culture; encourage an expansion of Foreign Journalist Tours;
translate more Western books into Arabic; increase scholarships and visiting fellowships; upgrade
the American government Internet presence; and train more Arab speakers, public relations specialists,
and experts in Arab matters. The Voice of America will increase the number of hours it
broadcasts to countries in the broader Middle East, with significantly increased television programming
in languages such as Persian, Dari, Pashto, and Urdu.
A view inside the BBG Middle East Broadcasting Networks
newsroom.
The Administration is expanding funding for
public diplomacy and exchange efforts by 21
percent in general and specifically in the broader
Middle East. For example, the 2006 Budget
includes $100 million for the Partnerships for
Learning (P4L) Initiative, which provides scholarships
and exchange opportunities to students
in the Muslim world. P4L was created to reach
an audience younger and more diverse than that
addressed by existing programs. In 2006, the
P4L Initiative, including the Youth Exchange
and Study program, will specifically focus its
outreach programs on underserved communities
in non-urban areas with a focus on high school
students and females in the Muslim world.
This Administration continues to provide accurate and balanced news and information to audiences
in the Middle East, through the Middle East Broadcasting Network, which receives $79.3 million in
the 2006 Budget.
222 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
PROTECTING AMERICA—Continued
Managing Threats Abroad
Support for Our Coalition Partners. The United States and our allies have shown great resolve
in the War on Terror. The Budget supports the front-line states that have joined us in the campaign
against global terror. The President’s request includes over $640 million for Pakistan to help
advance security and economic opportunity for Pakistan’s citizens; over $450 million for Jordan to
accelerate economic growth opportunity and strengthen border controls; and over $550 million to
support Colombia’s unified campaign against drugs and terrorism.
The Global War on Terror
U.S. assistance continues to result in unparalleled military, law enforcement, and intelligence cooperation
that has successfully destroyed terrorist cells, disrupted terrorist operations, and prevented attacks. Over
the last year, there have been many counterterrorism successes in cooperating countries and international
organizations. For example:
• More than three-quarters of al-Qaida’s known key leaders and associates have been detained or killed,
with major successes in Afghanistan, Pakistan, Indonesia, the Philippines, and Saudi Arabia;
• Indonesia, the world’s largest Muslim country, has taken new steps to move against Jemaah Islamiah
operatives, an al-Qaida-linked Islamic terrorist organization;
• The United States has trained and advised Philippine forces in their counterterror operations, such as
those against the Abu Sayyaf terrorist group;
• Yemeni authorities have moved against al-Qaida in their own territory, hosted Army Special Forces to
train and advise Yemeni troops in counterterrorism, and increased contacts with key U.S. agencies;
and
• Saudi Arabia is working to shut down the facilitators and financial supporters of terrorism, and has
captured or killed many leaders of the al-Qaida organization in Saudi Arabia.
Building Peace Support Capabilities. Global peacekeeping capabilities, with a particular focus on
Africa, are critical to bringing security and stability to troubled regions. The 2006 Budget includes
$114 million for the second year of the Global Peace Operations Initiative. This Initiative, being
implemented in cooperation with the G-8, pledges to:
• Train and equip 75,000 troops by 2010 to increase global capacity to conduct peace support
operations with a focus on Africa;
• Create a “clearinghouse” function to exchange information and coordinate G-8 efforts to enhance
peace operations training and exercises in Africa;
• Develop a transportation and logistics support arrangement to help provide transportation for
deploying peacekeepers and logistics support to sustain units in the field; and
• Establish a Gendarme (Constabulary) Center of Excellence in Italy to increase capabilities and
interoperability of military police forces for peace support operations, and to support other
existing centers dedicated to that purpose.
THE BUDGET FOR FISCAL YEAR 2006 223
President George W. Bush meets with Presidents Hamid Karzai of
Afghanistan and Pervez Musharraf of Pakistan at the United Nations.
In addition to this initiative, the Administration
has established an Office of the
Coordinator for Reconstruction and Stabilization
within the Department of State. This office
was created to enhance the U.S. Government’s
planning and response capabilities to address
conditions in failed, failing, and post-conflict
states and put in place a foundation for lasting
peace, good governance, and economic and
social development. In the absence of effective
engagement, such states pose risks to the security
of the world. They often become breeding
grounds for terrorism, communism, organized
crime, trafficking, humanitarian catastrophes,
and other threats to U.S. national interests.
The 2006 Budget proposes a significant
expansion in the Office of the Coordinator to
strengthen its ability to lead U.S. planning
efforts for countries and regions of most
concern, and coordinate the deployment of U.S. resources when needed. In addition, the 2006
Budget proposes a $100 million Conflict Response Fund to quickly address emerging needs. This
funding will help the United States deploy trained and experienced civilian personnel immediately
to an unstable region. These teams would lead interagency efforts and come ready with plans to
achieve stability and begin reconstruction.
Counternarcotics Activities. The U.S. Government is committed to rolling back the drug trade and
severing the ties between narco-traffickers, terrorists, and other international criminal organizations.
The 2006 Budget includes $734.5 million for the Andean Counterdrug Initiative to consolidate
gains made in recent years in the areas of eradication, interdiction, and alternative development.
This past year, almost 120,000 hectares of Colombian coca were aerially eradicated, and 12,845 families
received alternative development assistance. In 2004, the government of Colombia established
a law enforcement presence throughout the entire country for the first time in history. Nearly 150
Colombian narco-traffickers, terrorists, and money launderers have been extradited to the United
States in the past two years.
The United States is applying lessons learned from the successes under Plan Colombia to other
parts of the world, including Afghanistan. In 2004 the Administration moved quickly to make counternarcotics
a central pillar of its reconstruction assistance in Afghanistan. It proposed to begin an
ambitious anti-poppy campaign, working with the newly elected President, Hamid Karzai, and our
international partners including Great Britain. The 2006 Budget includes $437 million for operations
to continue the fight against drugs in Afghanistan.
224 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
PROMOTING ECONOMIC OPPORTUNITY AND OWNERSHIP
11.0
12.1 11.6
13.3
15.2
17.0
19.8
2000 2001 2002 2003 2004 2005 2006
0
5
10
15
20
Budget authority, billions of dollars
U.S. Core Development Assistance*
* Does not include Iraq Relief and Reconstruction Fund.
President Exceeds Commitments with the 2006 Request
In 2002, President Bush called for “a new
compact for global development, defined by
new accountability for both rich and poor
nations alike. Greater contributions from
developed nations must be linked to greater
responsibility from developing nations.” The
President pledged that the United States
would lead by example and increase its core
development assistance by 50 percent over
the next three years, resulting in an annual
increase of $5 billion by 2006. The President’s
original 2002 pledge called for these new
funds to go into a new Millennium Challenge
Account (MCA). The Administration did not
receive its full requests for MCA in 2004 and
2005. Therefore, this Budget adjusts MCA’s
ramp-up period to more accurately reflect Congressional action to date, reaching the $5 billion figure
by 2007. Nonetheless, this Budget still substantially exceeds the President’s 2002 commitment for
overall growth in core development assistance by requesting a total of $19.8 billion, $8.2 billion
more than in 2002.
Millennium Challenge Account
MCA is an innovative program that focuses only on those countries, among the poorest in the world,
that have met independent criteria with respect to ruling justly, investing in their people, and promoting
economic freedom. This common-sense approach uses measurable indicators to select countries
best able to effectively use assistance. Once selected, countries develop their own proposals and
enter into partnership agreements—called Compacts—with the Millennium Challenge Corporation
(MCC). MCC will fund only those proposals with clear objectives, a sound plan for implementation
and financial accountability, and specific indicators demonstrating results. This innovative process
is beneficial because it gives countries the responsibility for their own development, in some cases
for the first time. However, it is also time intensive. MCC has identified 17 eligible countries in 2004
and 2005. In recent months, 15 of those countries have submitted Compact proposals.
By providing incentives for countries to reform, MCA has strengthened the resolve of some states
to break down the barriers to economic growth and a better quality of life for their citizens. The
impact of these reforms extends even to those countries that are not currently eligible, as they adopt
policy reform agendas in an attempt to become eligible.
The Congress appropriated $1.5 billion for MCA in 2005, $1 billion short of the President’s request.
The 2006 Budget request of $3 billion for MCC’s third year will help countries help themselves become
more prosperous, democratic states. In 2006, MCC will expand its list of potentially eligible
countries to some 110 states with per capita incomes of up to about $3,000 per year, an increase from
the current number of roughly 80 states with a per capita level of up to about $1,500 per year. The
2006 funding request will support those countries deemed eligible for funding in 2006 by the MCC
Board of Directors, as well as the 17 countries currently eligible.
THE BUDGET FOR FISCAL YEAR 2006 225
Given thatMCC was established in 2004, has only recently selectedMCA eligible countries, and the
time required for countries to develop their own proposals that meet MCC requirements for demonstrating
results, the funding request for 2006, combined with the amounts appropriated in 2004 and
2005, provides enough resources for those countries ready to proceed with Compacts in 2006.
Multilateral Economic Assistance Programs
New bakeries bring work opportunities to rural women in
Guatemala and provide food security for their families.
More traditional multilateral economic assistance
programs continue, with new emphasis on accountability
of performance. When countries implement
sound economic and governance policies, they create
greater growth, stability, and a better future for their
citizens. To ensure the effectiveness of international
assistance, donors should focus resource assistance
on countries that adopt positive growth policies
and clear, measurable goals and targets for the
assistance they receive. The United States has been
instrumental in getting the Multilateral Development
Banks (MDBs), such as the World Bank, to institute
allocation systems that ensure more assistance goes
to better performing countries and less goes to weaker
performers. With strong U.S. leadership, the MDBs
are instituting results-oriented management, as recommended in Program Assessment Rating Tool
reviews of a number of MDBs, and increasing transparency to bolster development outcomes and
enhance accountability.
The United States has led efforts to help the poorest countries to make more productive investments
without incurring greater debt by pressing the World Bank and other MDBs to increase the
share of assistance provided as grants rather than loans. The United States recently concluded
replenishment negotiations for the World Bank’s International Development Association and the
African Development Fund, which will increase the share of new funding disbursed to the poorest
countries through grants, rather than loans, to about 45 percent from approximately 25 percent and
20 percent, respectively. The United States also recently completed replenishment negotiations for
the Asian Development Fund, which established, for the first time, a grant window where 21 percent
of total assistance will be in the form of grants. The 2006 Budget will support these agreed-upon
reforms through its request of $1.34 billion for U.S. contributions to these institutions and the other
Multilateral Development Banks.
The United States continues to support 100 percent debt reduction under the Enhanced Heavily
Indebted Poor Countries (HIPC) Initiative. Coupled with prudent economic policies, debt reduction
allows these countries to channel resources they would have used to pay interest and other debt
service costs into critical programs, such as health and education. The 2006 Budget requests $100
million to continue to support HIPC and other debt reduction programs.
Promoting the Gains from Trade
A strong worldwide economy is critical for creating job opportunities for Americans, and liberalizing
trade is the single most effective tool in strengthening the global economy. Free and fair trade
creates high-paying jobs for American workers, businesses, farmers, and ranchers, while increasing
the living standards of Americans through lower prices and more choices.
226 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
PROMOTING ECONOMIC OPPORTUNITY AND OWNERSHIP—Continued
In 2004, free trade agreements with Chile and Singapore were signed and implemented, and the
President concluded free trade agreements with Australia, Bahrain, and Morocco, in addition to the
agreement with five Central American Countries (CAFTA) and the Dominican Republic. The President
also initiated free trade negotiations in 2004 with Panama, Thailand, and three countries of
the Andean region (Colombia, Peru, and Ecuador) and notified the Congress of his intention to begin
free trade negotiations with Oman and the United Arab Emirates.
These agreements achieve strong intellectual property and investment protections for U.S. companies,
as well as enforcement of domestic environmental and labor rules. The President will build
on this success with completion in 2005 of the Andean Free Trade Agreement and with continued
progress towards a Free Trade Area of the Americas agreement, as well as an agreement with the
Southern African Customs Union. The President has also called for a Middle East Free Trade Area
by 2013 to spur economic growth and expand opportunity in this critical region of the world. The
2006 Budget provides for the implementation of free trade agreements with Bahrain, Panama, the
Dominican Republic, and CAFTA. The Office of the U.S. Trade Representative will continue to pursue
aggressive trade agreements with other nations.
Students from a secondary girl’s school in Baghdad with new school
supplies.
The United States is working with 148
member economies in the World Trade Organization
(WTO) to reach an agreement that
will open markets to U.S. businesses, promote
worldwide growth, and enhance economic
development in some of the poorest countries
of the world. Having played a key role in
launching the current WTO Doha Development
Agenda, the United States has proposed
elimination of all global tariffs on consumer
and industrial goods by 2015, substantial cuts
in farm tariffs and trade-distorting subsidies,
and broad opening of services markets.
Investing in Tomorrow’s Leaders
Education enables people to be more productive, improve their standard of living, and contribute
to the growth of their nations. Unfortunately in much of the world, access to basic education is still
extremely limited, and illiteracy, especially among women, is very common.
The Administration has launched several education initiatives since 2002 to focus more resources
on improving educational quality across the globe. The Africa Education Initiative is providing scholarships
for girls, distributing 4.5 million textbooks and training over 400,000 teachers. The innovative
Centers for Excellence in Teacher Training in Latin America and the Caribbean are focused
on improving the quality of schools and their curricula. Significant new resources for education
in the Muslim world, in countries such as Pakistan, Indonesia, Morocco, Yemen, Jordan, Iraq, and
Afghanistan, have expanded opportunities for millions of girls and boys. Under the G-8’s Broader
Middle East and North Africa Initiative, the United States and its allies are seeking to train 100,000
teachers in the region by 2009. Worldwide, President Bush has more than doubled funding for State
Department-funded basic education programs, from $126 million in 2001 to $322 million in this Budget.
In addition to funding for basic education, the Budget includes $167 million for higher education
and training worldwide.
THE BUDGET FOR FISCAL YEAR 2006 227
SUPPORTING A COMPASSIONATE SOCIETY
America’s compassion for the world’s most vulnerable citizens is manifested in the international
programs that provide humanitarian and other assistance. The President’s Budget reflects this
continued commitment.
Emergency Plan for AIDS Relief—Caring for the World’s Most Vulnerable Citizens
The President’s Emergency Plan for AIDS Relief Saves Lives
One person benefiting from the Emergency Plan is Buse Banga of Zambia. When she arrived at the Mother
Teresa Hospice in Lusaka, Zambia, Buse lay in a coma. Her neighbors had given her up for dead. But after
just two weeks receiving antiretroviral treatment in a U.S.-supported clinic, Buse opened her eyes. Several
days later, she returned home, standing tall and full of life, to the joyful astonishment of her friends and
family. By 2008, the Emergency Plan will help two million more people in similar ways.
The President’s Emergency Plan for AIDS Relief continues in its third year to fight the global
HIV/AIDS epidemic, which resulted in almost 3.1 million deaths in calendar year 2004 alone.
The Administration is committed to prevent seven million new HIV infections by 2008; treat two
million HIV-infected people; and care for 10 million individuals affected by HIV/AIDS, including
orphans. The Emergency Plan uses prevention funds for methodologies that are effective in helping
people avoid behaviors that place them at risk of contracting HIV. One such program is called
“ABC”—Abstinence, Be faithful, and, as appropriate, correct and consistent use of Condoms—and
was proven successful in Uganda, Zambia, Senegal, and elsewhere. The Emergency Plan maintains
bilateral, regional, and volunteer HIV/AIDS programs in over 100 countries around the world with
a focus on some of the hardest hit nations: Botswana, Cote d’Ivoire, Ethiopia, Guyana, Haiti, Kenya,
Mozambique, Namibia, Nigeria, Rwanda, South Africa, Tanzania, Uganda, Zambia, and Vietnam.
2003 Baseline 2004 2005 2006
0
1
2
3
4
5
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
Target impact,
millions of people
Global AIDS funding,
billions of dollars
Emergency Plan for AIDS Relief Reaching the
2008 2-7-10 Goal
Source: Department of State.
Global AIDS Funding
Treatment
Prevention
Care
Since the President announced the
Emergency Plan—a five-year, $15 billion
commitment—in his 2003 State of the Union
Address, the United States has provided
$5.2 billion for the fight against global AIDS,
and the 2006 Budget requests an additional
$3.2 billion for this effort. Starting with $2.4
billion in 2004, the U.S. Government has made
remarkable progress during the Emergency
Plan’s first year of implementation and has
already made a significant impact on the
lives of those living with AIDS. For example,
with $350,000 in Emergency Plan funding
for Botswana, UNICEF has been able to
improve service delivery in care and support of
orphans and vulnerable children; strengthen
faith-based organizations’ institutional capacities; and ensure orphans and vulnerable children
have access to essential services and protection from abuse and exploitation.
228 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
SUPPORTING A COMPASSIONATE SOCIETY—Continued
A peer educator in Zambia explains the process of voluntary counseling
and testing for HIV/AIDS.
In addition to bilateral programs, the
United States is helping other nations deepen
their commitment to stemming the spread of
HIV/AIDS through our role in international
organizations like UNAIDS, WHO, and the
Global Fund to Fight AIDS, Tuberculosis, and
Malaria. This Administration provided the
founding contribution to the Global Fund,
and the United States remains by far the
world’s largest donor to it. The President’s
Emergency Plan is working with UNAIDS
and other international organizations to
implement the “three ones” in countries that
receive assistance: one national plan, one
national coordinating authority, and one
national monitoring and evaluation system. In this way, nations are building a more coordinated
and effective global effort to fight HIV/AIDS.
Humanitarian and Food Assistance
The United States, through its support of international and non-government organizations, will
continue to be the world’s most generous provider of food aid and non-food humanitarian assistance,
including shelter, health care, water, and sanitation. The 2006 Budget also reinforces the Administration’s
commitment to finding durable solutions for refugees around the world, and provides an
increase in funding to support assistance abroad and resettlement in the United States.
Sudanese refugee women mixing the corn soy blend provided by the
United States.
In 2004, the United States led the international
community—both in terms of timeliness
and funding levels—in assisting over 1.6
million internally-displaced persons in the
Darfur region of Sudan, and 200,000 Sudanese
refugees in Chad. The 2006 Budget continues
this strong level of support, addressing both
the food and non-food needs of victims of
the conflict in Darfur. The Administration
continues to support the Sudanese people
through humanitarian assistance as the
country works toward a peace settlement for
Darfur that will allow refugees and other
displaced persons to return to their homes.
The United States also supports refugee resettlement
and assistance in this country. In
2004, the United States admitted more than
50,000 of the world’s refugees for resettlement, nearly doubling the previous year’s total. President
Bush continues to advocate for a generous resettlement program, and the 2006 Budget provides a
significant increase in funds to support the growing number of refugees being resettled in the United
THE BUDGET FOR FISCAL YEAR 2006 229
States. Millions more will be assisted through humanitarian assistance programs in countries where
they first seek asylum as they await repatriation opportunities.
Child immunization saves lives in Ghana.
In 2004, U.S. food aid protected vulnerable
populations around the world, with over $700
million donated to the food emergencies in
Sudan, Ethiopia, Angola, and southern Africa,
which helped feed over 14 million people. The
2006 Budget supports the Administration’s
continuing efforts to prevent widespread
famine as well as major new efforts to make
food aid more effective by requesting a portion
of it as cash assistance, which allows emergency
food aid to be provided more quickly
and more flexibly to address the most urgent
needs. The analysis of food assistance through
the Program Assessment Rating Tool supports
this decision to give assistance in cash.
Human Rights and the Rule of Law
Human rights and the rule of laware core values of the American people and a key element of U.S.
foreign policy. The United States will continue to challenge governments to meet their obligations
under international treaties and work to reform and strengthen the Office of the United Nations
High Commissioner for Human Rights and United Nations Commission on Human Rights. The 2006
Budget includes over $115 million in funding for support, training, and assistance programs to aid
people and strengthen institutions that promote freedom and human rights and help establish the
rule of law. In 2004, the United States provided approximately $38.5 million in FREEDOM Support
Act funds to strengthen democracy, human rights, and the rule of law in Central Asia, including
assistance with legislative drafting; training judges, prosecutors, and public defenders; and providing
advisors for judicial and prison reform.
Abolishing Trafficking in Humans
The United States is committed to abolishing the trafficking of human beings, which is a modern
day form of slavery and an affront to human dignity. According to some estimates, each year at least
700,000 and possibly as many as four million people, primarily women and children, are trafficked
around the world and exploited for sexual purposes or for labor without compensation.
In 2002 President Bush established a Cabinet-level task force to monitor and combat this
trafficking. The following year he announced a $50 million U.S. Government initiative to combat
this growing problem. Agencies are using these funds to prevent human trafficking, protect and
reintegrate victims, and build the capacity to investigate, prosecute, and convict traffickers in
Brazil, Cambodia, India, Indonesia, Mexico, Moldova, Sierra Leone, and Tanzania. The 2006 Budget
continues support for the anti-trafficking program. In addition, the Administration has established
a Human Smuggling and Trafficking Center to coordinate interagency efforts to share information
and prevent trafficking in persons, migrant smuggling, and terrorist travel, and is working to
identify and assist trafficking victims domestically.
230 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
SUPPORTING A COMPASSIONATE SOCIETY—Continued
Service
President Bush is committed to increasing American service overseas and, accordingly, has asked
for increases in the Peace Corps’ budget every year since taking office. The number of Peace Corps
volunteers—7,733 in 2004—is at its highest level in 29 years. These dedicated individuals reflect
the best of American values and compassion by working in such diverse fields as education, health,
HIV/AIDS education and prevention, information technology, business development, the environment,
and agriculture. The Budget requests $345 million for the program, allowing it to open at
least two new posts and maintain the existing number of volunteers.
In addition, in 2003, President Bush announced a new initiative coordinated by USA Freedom
Corps and USAID called Volunteers for Prosperity that provides America’s professionals new opportunities
to serve abroad on specific development initiatives in countries of their choice. Organizations
that become Volunteers for Prosperity participants and deploy volunteers are given priority for Federal
funding in select Federal development assistance programs. Since its inception, Volunteers for
Prosperity has recruited nearly 200 non-profit and for-profit organizations, representing a pool of
34,000 skilled American professionals. These organizations have deployed nearly 7,000 volunteers
to help reduce poverty and promote economic growth.
THE BUDGET FOR FISCAL YEAR 2006 231
MAKING GOVERNMENT MORE EFFECTIVE
Capital Security Cost Sharing for Diplomatic Facilities
Protection of U.S. Government personnel assigned abroad is a top priority. In response to the 1998
bombings of two U.S. embassies in East Africa, the State Department embarked on several ambitious
initiatives to improve physical security overseas. Many posts require additional work to withstand
terrorist attacks and other dangers. In 1999, the State Department launched a security upgrade and
construction program to begin to address requirements in more than 260 embassies and consulates.
In 2003 and 2004, the State Department completed construction of several new embassy compounds,
including compounds in: Tunis, Tunisia; Zagreb, Croatia; Abu Dhabi, United Arab Emirates;
Istanbul, Turkey; and Sofia, Bulgaria. In addition, the State Department has 22 projects under construction
and has awarded contracts for 12 new projects.
A view of the new embassy compound in Istanbul, Turkey.
In 2005, the Administration initiated a
plan to dramatically expedite construction of
secure facilities worldwide, called the Capital
Security Cost-Sharing Program. Under this
program, each agency with staff overseas
contributes annually towards construction
of the new facilities based on the number of
authorized positions and the type of space
they occupy. In 2006, non-State agencies
will contribute approximately $203 million to
the program and State will contribute $810 million. This cost-sharing plan will enable the State
Department to replace 150 embassies and consulates over 14 years for a total cost of $17.5 billion.
Capital security cost sharing is a major component of the President’s Management Agenda initiative
on “rightsizing” that stresses that agencies should consider all implications—including mission,
cost, and security—when they choose to place or retain staff overseas. Cost-sharing among agencies
for U.S. diplomatic facilities abroad reflects the recognition that the facilities represent the entire
Nation, and not just facilities of the Department of State.
Rightsizing the U.S. Government Presence Overseas
The President emphasizes the importance of safety, efficiency, and accountability in U.S. Government
staffing overseas by making sure that the composition of Government agencies is consistent
with our foreign policy goals, security needs, and overall fiscal condition. There are more than 57,000
permanent American and local staff overseas under the authority of Chiefs of Mission. The average
Overseas Staffing Under Chief of Mission (COM) Authority
Total Personnel Overseas Under
COM Authority (Including American
and Locally Engaged Staff)
Projected for 2005
Total America Direct Hire Personnel
Overseas Under COM Authority
Projected for 2005
Average Cost of a U.S. Direct Hire
Overseas Estimated for 2006
57,128 14,659 $430,000
232 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
MAKING GOVERNMENT MORE EFFECTIVE—Continued
cost of putting an American direct hire position overseas in 2006 will be approximately $430,000.
With our foreign policy priorities demanding increased support to meet new homeland security, counterterrorism,
and global AIDS requirements, it is important that we use overseas staff resources
carefully.
In 2004, the Department of State established the Office of Rightsizing the U.S. Government
Overseas Presence. It also started an initiative called MOMS (Model for Overseas Management
Support), which provides support activities for the new Embassy in Baghdad and will be expanded
to assist other embassies in 2005 and 2006. In 2005, the Department of State plans to open the
new Frankfurt Regional Center, and implement a shared-services model at its Florida Regional
Center. These centers will take on certain work now being done at overseas posts. Beginning in
2005, formal rightsizing reviews are required for all new embassy construction projects and every
U.S. mission worldwide on a five-year basis. And in 2006, the Administration will continue to build
on the achievements that support the Rightsizing Initiative through expanded shared-services and
regionalization models, rigorous post level reviews, and an accurate accounting of overseas staffing
and costs that produce rightsizing results.
Update on the President’s Management Agenda
The table below provides an update on the State Department’s implementation of the President’s
Management Agenda as of December 31, 2004.
Human Capital
Competitive
Sourcing
Financial
Performance E-Government
Budget and
Performance
Integration
Status
Progress
Arrows indicate change in status since evaluation on September 30, 2004.
The State Department is aggressively implementing human capital improvements including implementation
in 2005 of a revised Civil Service appraisal system that better differentiates performance and that ties the
work of all employees to achieving the strategic goals of the Department. For competitive sourcing, the State
Department announced its first standard competition for Multi-Media Services and numerous streamlined
competitions. The State Department has developed efficiency measures for each of its programs and is using
them to drive down cost while achieving performance. For instance, the Refugee Admissions Program has
decreased the per-person cost of admitting refugees to the United States from nearly $4,500 in 2002 to $3,500
in 2004, while exceeding the goal of admitting 50,000 refugees.
THE BUDGET FOR FISCAL YEAR 2006 233
Initiative Status Progress
Real Property Asset Management
A “Right-Sized” Overseas Presence
In support of the Real Property Initiative, the Department of State is working to integrate its domestic and
overseas real property operations into a unified asset management plan.
As noted earlier in the narrative on rightsizing, this PMA initiative seeks to ensure that our overseas presence
is aligned with overall mission priorities, security, and costs. The Office of Management and Budget, working
closely with the Department of State and other interagency rightsizing partners, has made progress in putting
in place mechanisms that support accountability, transparency, and new alternatives for overseas staffing. In
the coming year, efforts will focus not only on strengthening these new processes, but on demonstrating real
results of positions being moved in response to regionalization efforts following formal rightsizing reviews, and
on streamlining and consolidation of support services.
The table below provides an update on the U.S. Agency for International Development’s (USAID’s)
implementation of the President’s Management Agenda as of December 31, 2004.
Human Capital
Competitive
Sourcing
Financial
Performance E-Government
Budget and
Performance
Integration
Status
Progress
USAID has successfully implemented a new financial management system in Washington, D.C., and is in the
process of rolling that system out to missions around the world. The Agency has received its second clean
audit opinion and reduced auditor material weaknesses from three to one. The Agency has developed a
comprehensive human capital strategy and accountability system, and is in the process of implementing that
system. The Agency is also undertaking an ambitious review of its current business model, and is considering
moving to regional or Washington-based provision of certain assistance functions to improve efficiency and
effectiveness. Together with the State Department, the Agency is developing a comprehensive Enterprise
Architecture, which will help to more effectively target information technology investments and business process
improvements. In the last year, USAID created, and used to inform certain budget decisions, a new strategic
budgeting model, and developed a set of agency-wide and regional performance measures that will be used
across regional bureaus and programs.
Initiative Status Progress
Faith-Based and Community Initiative
The Faith-Based and Community Initiative just completed its first year at USAID and is actively engaged in
removing barriers to participation by community organizations, including faith-based organizations, as well as
intensifying outreach and information dissemination to make USAID competitive grant opportunities more
accessible to a broader population of potential grantees.
234 DEPARTMENT OF STATE AND INTERNATIONAL ASSISTANCE PROGRAMS
Department of State and International Assistance Programs
(In millions of dollars)
Estimate 2004
Actual 2005 2006
Spending
Discretionary Budget Authority:
Department of State:
Diplomatic and Consular Programs .......................................................... 4,185 4,172 4,473
Embassy Security, Construction, and Maintenance............................ 1,376 1,504 1,526
International Organizations and Conferences....................................... 1,449 1,649 2,332
Global HIV/AIDS Initiative............................................................................. 488 1,374 1,970
All other programs ........................................................................................... 2,455 2,561 3,012
Subtotal, Department of State ......................................................................... 9,953 11,260 13,313
International Assistance Programs:
Foreign Military Financing............................................................................. 4,258 4,745 4,589
Nonproliferation, Anti-Terrorism, Demining and Related
Programs ........................................................................................................ 336 399 440
Development Assistance............................................................................... 1,364 1,448 1,103
Economic Support Fund................................................................................ 1,947 2,481 3,036
Child Survival and Disease Programs...................................................... 1,823 1,538 1,252
Millennium Challenge Corporation ............................................................ 994 1,488 3,000
Peace Corps ...................................................................................................... 308 317 345
Conflict Response Fund (legislative proposal)...................................... — — 100
All other programs ........................................................................................... 4,057 3,788 4,595
USDA International Food Aid (non-add) ................................................. 1,185 1,173 885
Subtotal, International Assistance Programs............................................. 15,087 16,204 18,460
Other International Affairs Activities:
Export-Import Bank......................................................................................... 30 77 211
Broadcasting Board of Governors ............................................................. 552 591 652
All other programs ........................................................................................... 74 183 87
Subtotal, Other International Affairs Activities ........................................... 656 851 950
Total, Discretionary budget authority ................................................................. 25,696 28,315 32,723
Memorandum: Budget authority from enacted supplementals ............... 3,155 193 —
Discretionary Outlays:
Department of State ............................................................................................ 9,953 11,260 13,414
International Assistance Programs ................................................................ 16,837 16,724 17,778
Other International Affairs Activities .............................................................. 1,167 1,233 1,086
From Supplementals ........................................................................................... 380 112 104
Total, Discretionary outlays ................................................................................... 28,337 29,329 32,382
Total, Mandatory outlays ........................................................................................ 5,032 2,524 561
Total, Outlays.............................................................................................................. 23,305 26,805 31,821
THE BUDGET FOR FISCAL YEAR 2006 235
Department of State and International Assistance Programs—Continued
(In millions of dollars)
Estimate 2004
Actual 2005 2006
Credit activity
Direct Loan Disbursements:
Department of State ............................................................................................ — 1 1
International Assistance Programs................................................................ 511 791 551
Export-Import Bank.............................................................................................. 928 277 144
Total, Direct loan disbursements ......................................................................... 1,439 1,069 696
Guaranteed Loan Commitments:
International Assistance Programs ................................................................ 3,037 5,609 560
Export-Import Bank.............................................................................................. 10,928 11,092 11,787
Total, Guaranteed loan commitments................................................................ 13,965 16,701 12,347
