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This is an archived USAID document retained on this web site as a matter of public record.
Chairman Callahan, Congresswoman Pelosi, members of the committee, good afternoon. Thank you for inviting me here today to present the Administration's budget request for foreign assistance programs for Fiscal Year 2001. I would also like to lay out my priorities for the agency.No one wants to live in a world of failed states-a world where famine, disease, conflict, crime and terrorism are commonplace. Such a world would threaten the health, security, prosperity, and ultimately, the happiness of ourselves and of generations to come.
The major foreign policy goal of this or any administration is to help develop an international community of stable and relatively prosperous states that do not threaten their people or their neighbors. But this takes time, patience, political will, and resources. This is the business of U.S. Agency for International Development.
Since 1961, when USAID was created, worldwide literacy has risen by almost 20 percent, life expectancy is up ten years, smallpox has been eradicated, and polio nearly eliminated. The percentage of people who live in absolute poverty has been halved. Of course, the credit for all this progress belongs to the people and leaders of developing countries. But it would not have happened without us, and without Congress' support.
As you know I have been at this job for only eight months now. That's not very long in a job as complex as this; still, I have had a chance to travel a bit, visit our field missions, and see the work we do firsthand.
I have been to Bosnia-Herzegovina, where I sat under a plum tree in the village of Podkraj and listened to the stories of refugees we were helping get back home. All of them were grateful not just to USAID, but to the United States.
In Honduras I met a woman who, after the devastation of Hurricane Mitch, was able to put her life back together with the help of a microenterprise loan through USAID.
Mr. Chairman, these people-and others like them around the world-look to America for leadership not because we are powerful, or wealthy, but because we believe that, as our Declaration of Independence states, everyone has a right to life, liberty, and the pursuit of happiness. And we are at our best when we promote and defend these principles as ardently abroad as we do at home.
Before I start getting into specific programs, let me say a few words about one of my personal priorities for this agency.
As many of you know, I have made improving the management and efficiency of USAID one of my top priorities. While I will go into detail later in my testimony, I would like to say that we have been working hard to address both the short and long-term problems that this agency has faced in the past. Over the coming year, I hope that we will be better able to respond to Congressional inquiries. Again, this will not and cannot happen overnight, but we are taking a lot of steps in the right direction. I hope we can count on your support.
We are also working to address the concerns of small and minority-owned businesses. As you know, USAID does most of its business through contracts, grants and cooperative agreements. Over the past few years, because of cuts in staff and resources, USAID has been following the trend of most federal agencies in awarding larger contracts to fewer organizations. And while we see this move as necessary, I recognize that we also have a responsibility to have our programs reflect the full diversity of America. In the coming months I hope to make more progress on this issue.
With regard to USAID programs in the field, I want to emphasize the importance of building and strengthening democratic institutions: a strong rule of law, a vibrant civil society, a free press, an honest and fair judiciary, and agencies that both promote and regulate private investment. Of all the work we do, building democratic institutions is among the most important, because they are the foundations of any successful democracy. It is no accident strong institutions also help attract foreign investment, which creates jobs, which in turn leads to sustained economic growth. If we want to ensure that a majority of the world's population does not get left behind in this new era of globalization, we must work to strengthen the democratic institutions of developing market economies.
Which brings me to my next point. While economic growth is important to developing countries, and certainly we need to do what we can to encourage it, it should not be paid for with a devastated environment, compromised workers' rights, or forced or abusive child labor. Economic growth is not a zero sum game.
And now, please allow me to present the Administration's request.
Mr. Chairman, for Fiscal Year 2001, the President has requested $7.5 billion in discretionary funding for programs administered by USAID, including those jointly administered with the Department of State.
Let me begin by mentioning some programs that I know are of special interest to this committee.
The Child Survival and Disease Programs Fund
The FY 2001 request for the Child Survival and Disease Programs Fund is $659 million. Of this amount, $561 million will be used for child survival, HIV/AIDS and other infectious disease prevention, maternal health and other health programs, and $98 million will be used for basic education.
Every year, millions of children in the developing world die from diseases that are easily prevented: measles, tetanus, and diarrhea, for example. Over the past 15 years, USAID, with Congress' support, has spent over $3.5 billion on child survival programs. Over this same period of time, we have seen a 20 percent reduction in under-five mortality, from 145 deaths per 1,000 live births in 1985 to about 116 per 1,000 today. Deaths from measles have been cut in half, from some 2 million in years past to about 970,000 in 1998.
After 15 years of intense international investment, today's immunization programs routinely administer hundreds of millions of vaccinations to children in the developing world. But millions of children still lack access to these life-saving vaccines. Oral rehydration therapy, developed with USAID funding, is now used by over 60 percent of children in USAID-assisted countries. Increased access to Vitamin A, which USAID helps to distribute in about 20 countries, improves vulnerable children's chances of survival by up to 30 percent. With USAID support and technical leadership, simple, life-saving case management for acute respiratory infections has been incorporated into child survival programs in over 70 countries. These accomplishments have contributed to a 20 percent reduction in under-five mortality in developing countries, from 145 deaths per 1,000 live births in 1985 to about 116 per 1,000 today.
USAID is also working to provide protection against and improve the diagnosis and treatment of malaria-a disease that claims the lives of nearly 2 million people every year, most of them children in Africa. As part of our malaria prevention program, we are now launching an innovative partnership with the S.C. Johnson Company to ensure a supply of bed-nets and insecticide treatments at an affordable cost in Africa. Research supported by USAID has demonstrated that use of insecticide treated materials can reduce mortality by as much as 20 percent in some areas.
Breastfeeding, which USAID programs help promote, nurtures millions of newborns around the world, improving their immunity and nutrition. Breastfeeding is often the difference between life and death for infants in developing countries. We are also working to reduce the number of women who die in childbirth by providing a basic set of essential obstetric services. In Uganda, USAID helped develop a drug that helps prevent the transmission of the AIDS virus from mother to child-a discovery that has worldwide implications.
The $659 million request for Child Survival and Disease also includes $25 million for the Polio Eradication Initiative. Americans can be proud of the leadership role USAID has played in eradicating polio around the world. The Western Hemisphere was certified polio-free in 1994, and the number of reported cases in other parts of the world dropped from 350,000 in 1988 to fewer than 7,000 last year. Last year, over 470 million children were immunized against polio during national immunization days. This year, over three days in February, we helped immunize over 147 million children in India alone. In the Democratic Republic of the Congo, USAID, with the help of the United Nations, helped stop the fighting long enough to complete a polio immunization drive. Polio is destined to become the next small-pox: total eradication is within our grasp.
The Child Survival and Disease account also includes funding for USAID's infectious disease initiative-begun several years ago with the support of this Committee. With this initiative, we have been able to address the global tuberculosis (TB) epidemic, which claims the lives of almost 2 million people each year, and is growing in association with the HV/AIDS epidemic. USAID now has TB programs in more than a dozen countries, and plans to expand to others. These countries have some of the highest rates of TB in the world; many are also feeling the effects of the HIV/AIDS epidemic. In FY 2001, we hope to maintain our investments in TB at least at the FY 2000 levels of $20 million.
We also continue to lead the battle against HIV/AIDS, which I know is also of particular interest to this committee. This year, USAID is requesting $244 million in the Child Survival and Disease Account (plus $15 million in other accounts) to address the HIV/AIDS epidemic, especially in Africa and India. This is an increase of $54 million from the FY 2000 appropriation.
USAID is the lead donor in anti-AIDS efforts. So far we have spent nearly $1.5 billion to help prevent this epidemic, and to mitigate the devastating effects it can have on society. In fact, we are currently supporting 500 major activities in 47 countries around the world; over the next five years we expect to provide prevention services that have the potential to save the lives of over 50 million men and women.
As you know, the AIDS pandemic is most serious in Africa, home to two-thirds of the world's HIV-positive population-some 23 million people. In Zimbabwe, one of the countries worst hit, one-fourth of the adult population is believed to be infected. Despite these sobering numbers, we can justly claim that progress has been made: in Uganda, surveys show that HIV among urban antenatal women has been cut in half-from 30 percent in 1992 to 15 percent in 1997. The rate among adults nationwide has also fallen-from 12.1 percent in 1994 to 9.5 percent in 1997.
Clearly, we have a long road ahead of us. I appreciate this committee's concern for these issues, because diseases like polio and AIDS not only do not respect borders, but are also a threat to political stability, a necessary condition for development.
Now I'd like to lay out USAID's requests for its other accounts.
The Development Assistance Account
The FY 2001 request for the Development Assistance (DA) Account is $948.8 million, which includes funding for two new initiatives: $30 million for USAID's share of the President's five-year, $100 million interagency Clean Energy Initiative and $33 million for the Greening the Globe initiative, which will help conserve tropical rainforests and biodiversity (the new $33 million will bring USAID funding levels for conservation efforts to a total of $100 million).
Overall, the DA request includes $234 million for economic growth, $12 million for human capacity development, $92 million to support and promote democracy, $225.7 million to help protect the environment, $4 million for health promotion (War Victims' Fund), and $381 million for population programs.
This last request, with the addition of population funding in the DFA, ESF, SEED and FSA accounts, restores funding for population programs to the historic level of $542 million. These programs support vitally needed family planning and related reproductive health services which save the lives of women and children and reduce abortions.
REGIONAL PROGRAMS
The Development Fund for Africa
Reflecting the priority this Administration places on integrating Africa into the global economy, USAID is renewing its request for a separate appropriation for the Development Fund for Africa: for FY 2001, we are requesting $532.9 million. This amount includes $211 million for economic growth and agricultural development, $36 million for human capacity development (excluding basic education), $73 million for building and supporting democracy, $103 million for population programs and $107 million to help protect Africa's environment.
In addition to DFA, funding for Africa will include $304 million from the Child Survival and Diseases Program Fund and $98 million from ESF. With the addition of these two accounts, the total request is $935 million, meeting the President's commitment to return funding for Africa to historic levels.
As you know, Mr. Chairman, I lived in Africa for eight years, five as a Wycliffe Bible Translator and three as the U.S. Ambassador to Tanzania. It is a fascinating and complex continent, but it needs our support. These days we all read about the problems Africa faces-from the HIV/AIDS epidemic that is devastating its population to the wars and conflict that are shredding the very fabric of its society.
But that's only half the picture: the good news is that countries that only ten years ago were ruled by dictators are today democracies-Nigeria and Mozambique are two examples. South Africa ended apartheid. Mozambique ended 16 years of civil war. In Senegal we see an example of a democratically elected president respecting the outcome of an election he lost.
One of USAID's priorities in Africa is to promote economic growth to improve the lives of all Africans. The growth rate in Sub-Saharan Africa-4.9 percent over the past five years-is the highest in two decades, but a lot more needs to be done to increase trade, improve savings and investment rates, and institutionalize legal and regulatory reforms.
If we want emerging African democracies to remain stable, and prosper-and I think we all agree that it is in our interest that they do-then we must support their efforts to institute a rule of law, to build a strong civil society, sound economic institutions, and an independent judiciary and media. However, our resources in this regard are limited at best. I hope we can count on your support.
Latin America and the Caribbean
This agency's request for FY 2001 funding for Latin America and the Caribbean region (LAC) is $483.5 million. Of this amount, $264 million will come from the Development Assistance (DA) account, $86 million from the Child Survival and Disease Programs Fund, and $133.5 million in Economic Support Funds (ESF).
USAID's programs in the LAC region are based upon objectives established in the Summit of the Americas in 1994 and the follow-on conference of 1998; the most important of these is reducing poverty in this region. In light of the devastation visited upon the region by Hurricanes Mitch and Georges, among other natural disasters, this is proving to be even more of a challenge.
Another important objective with respect to LAC is halting the migration of illegal immigrants and narcotics into the United States. To address the former, we are working to strengthen fragile democracies and democratic institutions, which give people a say in their future. Our microenterprise programs are helping men and women expand their economic opportunity, improving the quality of their lives.
To address a large part of the problem of illegal drug flows into America, the President has proposed a $1.6 billion package of aid to Colombia, home to 80 percent of the cocaine consumed in the United States. The USAID-administered portion of this package includes such activities as helping Colombian farmers plant alternative-and legal-crops, like coffee, or working with the U.S. Department of Justice to help train prosecutors and judges. We will also be providing transitional assistance to the 1.1 million internally displaced Colombians.
Asia and the Near East
The Asia and Near East region (ANE) is important to the United States' national and commercial interests: over 50 percent of American foreign trade and investment takes place in this region. The countries of this region also control crucial shipping lanes essential to the smooth flow of international commerce.
USAID is requesting $2.5 billion for the ANE region for FY 2001. Of this, $271.4 million will come from the Development Assistance (DA) account, $97.6 million from the Child Survival and Disease Fund, and $2 billion in Economic Support Funds (ESF).
In general, the bulk of the ESF funds will be used to support the Middle East peace process and new programs under the Wye River Accords. ESF funds will also be used to fund bilateral programs in Cambodia and Mongolia, help strengthen democracy in East Timor and Indonesia, economic growth in East Asia, regional trade and investment in North Africa, regional energy trade, and anti-child labor and anti-trafficking activities in South Asia.
The $369 million DA and Child Survival and Disease request is $76 million above the level appropriated for FY 2000. This additional funding will allow USAID to broaden support for economic growth and democracy programs throughout the ANE region, and, as the President recently announced in India, to expand the South Asian regional energy program. Not only are these programs critical to our national interest-instability in countries like India and Indonesia, for example, can spread, often with disastrous consequences-but it is also critical to improving the climate for U.S. businesses in the ANE region.
In FY 2001 the DA account also includes funding for an Administration energy priority in South Asia: $20 million for the South Asia Regional Initiative/Energy (SARI). To promote economic growth, South Asian countries need to diversify their sources of energy, improve energy efficiency, reform their energy sectors, and expand regional energy trade. SARI will take a regional approach to help the countries of South Asia meet these needs.
In FY 2001, in response to the President's recent announcement, USAID will also restart our Financial Institutions Reform and Expansion (FIRE) program in India. FIRE will strengthen financial markets and regulatory agencies and help lay the foundations for a successful private insurance industry in India.
Europe and Eurasia
The Support for East European Democracy Account
For FY 2001, USAID is requesting a total of $610 million for the Support for East European Democracy Account (SEED); the bulk of this funding will focus on the Balkans. USAID proposes to use $142.7 million of this funding to foster economic growth and to develop open-market institutions, $112.5 million will be used to strengthen democracy, and $117 million will be used to rehabilitate the social sector (including health and population programs). We also propose using $237.8 million for crosscutting and other special initiatives, which includes funding for programs implemented by the U.S. Departments of State, Treasury, Commerce, Justice, Labor, the U.S. Federal Trade Commission, the Yugoslav War Crimes Tribunal, and the United Nations Mission in Kosovo (UNMIK).
This funding will allow USAID to continue its peace and economic stabilization efforts in Kosovo and Montenegro, to keep-at a reduced level-commitments made under the Dayton Peace Accords, to help democracy take hold in Croatia, and to encourage pro-democracy forces in Serbia.
This funding will also help the Southeast European countries of Macedonia, Bulgaria, Romania, and Albania, whose Danube River trade was disrupted by the bombing of bridges over the river during the conflict in Kosovo.
Mr. Chairman, I know that ensuring that the United States does not shoulder a disproportionate share of the burden in Southeast Europe has been of great concern both to this committee and to Congress as a whole. Let me try to address some of those concerns here.
With regard to Kosovo, our European allies have consistently stated their determination to bear the lion's share of the burden for reconstruction. Two weeks ago, I led the United States delegation to the Regional Funding Conference in Brussels. This conference reinforced and deepened the European commitment to lead efforts to reform and stabilize the region. A total of $2.4 billion ($700 million more than the conference goal) was pledged for "quick-start" projects, specific activities to be implemented within the next year. Our share of this package was $77.65 million, or 3.2 percent of the total.
Overall, the United States has pledged 15 percent of the total $3.4 billion in commitments for calendar year 2000; the balance comes from other bilateral donors, the European Union, and European Investment Bank. I hope you will be pleased, as we are, that the international community is coming through in a tangible and credible way to address the pressing needs in Southeast Europe for economic reform, stability, security, democracy and regional integration.
Eastern Europe, and particularly the Balkans, has proven to be the powder keg of the region, igniting the spark that set off World War I. Over the past decade, it has become clear that instability here could easily spread to the rest of Central and Eastern Europe. Mr. Chairman, I think we can agree that promoting political stability, peace, and democracy is not only in the best interests of the citizens of this region, but in ours as well.
The FREEDOM Support Act Account
For FY 2001, USAID is requesting a total of $830 million for the Freedom for Russia and Emerging Eurasian Democracies and Open Markets (FREEDOM) Support Act account, which funds programs in Eurasia. USAID proposes to use $206.8 million of this funding to foster economic growth and to develop open-market institutions, $76.6 million to strengthen democracy, and $78.4 million to rehabilitate the social sector (including health and population programs). We also propose using $468.2 million for regional, crosscutting and other special initiatives, which includes funding for programs implemented by the U.S. Departments of State, Treasury, Justice, Commerce and the U.S. Trade and Development Agency, as well as $87 million for the Administration's Expanded Threat Reduction Initiative (ETRI). USAID's share of FSA resources is about 54 percent in FY 2001, compared with 61 percent in FY 1999.
Unlike the countries of Central Europe, the countries of the former Soviet Union for the most part had little or no experience with democracy, civil society, or market economy upon which to build their modern nation-states. Therefore, especially where central governments are resistant to change, programs in this region have focused on the regional and municipal level.
The stronger the market democracies of Eurasia become, the less likely they are to become mired in conflict, and the more likely they are to become new markets for American goods and services.
Other Requests for Europe and Eurasia
USAID is also requesting $34.6 million in ESF funds for the Europe and Eurasia region, which includes $19.6 million for the International Fund for Ireland and $15.0 million for Cyprus.
While Turkey is not covered under the rubric of either the SEED or FSA accounts, USAID has run a population assistance program in Turkey since 1975. This program is now in its final phase. The approved closeout plan provides $1.0 million in DA funding for FY 2001, which we have added to our request.
USAID Credit Programs
USAID has been and will remain primarily a source of direct funding for development programs. However, credit is often the best way to leverage private funds for development purposes, and thus can be a useful development tool. Credit assistance is principally intended for use where development activities are financially viable, where borrowers are creditworthy, and where there are true risk-sharing arrangements with private capital providers for development projects.
In the past, USAID's credit activities have been covered under the umbrella of several programs, including the Micro and Small Enterprise Development Program, the Urban and Environmental Credit Program (formerly the Housing Guaranty Program), the Development Credit Authority and the Direct Loan program.
The FY 2001 request consolidates these programs into one new Development Credit Program account; we are requesting the authority to transfer up to $15 million from the DA, SEED, and FSA accounts into this new account for specific projects. USAID is also requesting $8 million in direct appropriation to cover the administrative expenses associated with managing the existing credit portfolio as well as the new Development Credit Program. The existing credit portfolio amounts to about $13.3 billion.
International Disaster Assistance Account
For FY 2001, USAID is requesting $220 million for the International Disaster Assistance account, which includes $165 million for disaster relief managed by USAID's Office of Foreign Disaster Assistance (OFDA) and $55 million for USAID's Office of Transition Initiatives (OTI), which implements programs that help countries recover from war and/or civil conflict.
All countries experience natural disasters at one time or another, even our own. Unfortunately, the world is seeing not only more natural disasters-the ten years from 1990-1999, for instance, was the worst natural disaster decade in Central and Latin America's history-but more complex emergencies, including those created or exacerbated by political forces. The American people have made it clear that they want to help. Most recently USAID has helped the victims of flooding in Mozambique, the victims of drought in the Horn of Africa, and the victims of conflict in Kosovo, Central Africa and East Timor.
Helping victims of disasters and emergencies is not only the right thing to do, it is in our interest to do so: quick relief prevents disease epidemics, it promotes political stability, and it helps developing countries return to pursuing their goals of economic growth and institution building.
Economic Support Fund Account
The Economic Support Fund (ESF) account advances the economic and political foreign policy interests of the United States. ESF funding can be used, for example, to finance balance of payments and economic stabilization programs, often in a multilateral context.
For FY 2001, USAID is requesting $2.3 billion in ESF funds. As detailed in other parts of my testimony, this funding will be used to support the Middle East peace process and several initiatives in Africa, to help transition countries like Haiti and Guatemala, strengthen democracy in countries like Indonesia, East Timor, Cambodia and Nigeria, and promote peace and stability in Ireland and Cyprus.
Operating Expenses
Mr. Chairman, since 1993 USAID staffing levels have been cut by over 30 percent. I continue to look for ways to improve this agency. However, we are reaching a point where more effective and efficient management of the agency is jeopardized by the erosion of staff. At the very least, it is imperative that we maintain current direct hire staff levels.
In addition, cuts in operating expenses (OE) often mean that we are forced to compromise our ability to adapt to changing situations. It means that fewer staff must oversee more and larger contracts. And finally, cuts in OE directly affect our ability to ensure safe working conditions for our staff.
For FY 2001, USAID is requesting $520 million for our Operating Expenses account. This funding will cover the salaries and other costs associated with USAID operations worldwide, excepting those of the Office of the Inspector General and the Development Credit Program. Operating expenses for these are requested separately.
Inspector General Operating Expenses Account
For FY 2001, USAID is requesting $27 million for the Inspector General's Operating Expenses Account. This funding will cover salaries and other costs associated with the Inspector General's operations worldwide, including audits and investigations related to USAID's programs and operations.
MANAGEMENT
Mr. Chairman, as you know, improving the management, efficiency, and effectiveness of USAID is a personal priority of mine. I'd like to lay out what we have done and what we plan on doing in several important areas.
Agency Systems
To improve USAID's financial systems, we purchased a commercial, off-the-shelf (COTS) accounting package in September 1999. We are currently working to implement this system, which will begin doing the accounting in Washington, D.C. in October and will be installed at our overseas posts in FY 2001 and 2002. We are requesting $8 million in the FY 2001 Operating Expenses request for this effort.
We are also working to ensure that our existing procurement system will work with the new accounting system. We are currently analyzing and reviewing our business processes and will be deciding within the next six months as to what is the best replacement procurement system available.
Beginning in FY 2001, our personnel and payroll processing will be performed on a system operated by the National Finance Center, an agency of the U.S. Department of Agriculture, which currently provides these same services for many other federal agencies. We expect the "cross-servicing" of these functions to save some $6 million over the next five years.
This year USAID must replace the operating system that runs our computer networks in Washington and overseas posts because the current vendor will no longer provide service for a system that fast becoming outdated. The system in Washington will be replaced this fiscal year; USAID is requesting $14.4 million in the FY 2001 OE request to replace the network operating system in the field. This funding is critical to maintaining the integrity of our international computer network.
Human Resources
As with all federal agencies, USAID must work to reenergize and position itself for the future. We are using the buyout authority provided in the FY 2000 Foreign Operations Appropriations Act, as well as "early out" authority granted by the Office of Personnel Management, to encourage voluntary attrition. We will work to develop staff skills in the areas of contracting, information technology and financial management as well as technical specialties to provide the most professional and modern technical assistance available to our field missions and partners.
USAID's foreign service also needs a fresh outlook. We have designed a strategic hiring plan to bring 60-70 new foreign service professionals into USAID annually, train them in Washington for one to two years, and then send them to the field. Many of these new recruits have previously worked with USAID as contractors so they are able to contribute quickly and significantly to our work.
Staff capacity is being expanded through new training programs designed to provide needed technical and management skills. In the past year, increased procurement training has been provided to both contract officers and program managers, and senior and supervisory management courses have been introduced.
Procurement
USAID does most of its business through contracts, grants, and cooperative agreements. In recent years the volume of procurement transactions has continued to rise even as USAID's funding and staffing have declined. To continue to provide effective assistance and work well with our contractors and grantees, a number of improvements are underway:
- Using new approaches. USAID has in place a significant number of large contract mechanisms that have been competed and awarded centrally, with country-specific task and delivery orders issued subsequently and at the local level. We are now experimenting with using this approach in a similar fashion for larger grant and cooperative agreement programs. That means limiting to some extent the discretion of program managers to initiate new transactions and stating a preference for using the central awards. We have also discovered that the use of such mechanisms has disadvantaged small and minority-owned businesses when competing for contracts and task orders. The use of such instruments must therefore be balanced with providing appropriate opportunities such businesses.
- Systems improvements. As I have said, we are increasingly using information technology to improve our business operations. Tying our procurement system to the new accounting system will be important for the next year, but even more important is that we have the funding in FY 2001 to begin development of a new, automated system for acquisition and assistance, as I described earlier.
- Staffing. At the OE funding level requested for FY 2001, overall USAID staffing will remain at about the current levels. Within those levels, I place a high priority on increasing the number of procurement professionals to assure timely processing of our programs. We are currently hiring a number of contracts people, and are implementing a process that will assure more efficient replacement of procurement staff as individuals depart.
Overseas Operations
It is also important that we allocate our overseas staff effectively, given the high cost of maintaining Americans in our field missions. We are currently participating in the State Department-chaired task force following up on the recent Overseas Presence Advisory Panel (OPAP) and hope that some efficiencies will result from that effort.
A vital part of efficient operations overseas is ICASS (International Cooperative Administrative Support Services), by which all agencies in an overseas post can receive administrative services from the most efficient provider at post. We are again requesting this year authority for a Working Capital Fund, similar to what the State Department already has, which would facilitate USAID being an ICASS provider at additional posts by allowing us to accept funds more easily from other agencies overseas. Mr. Chairman, there is no cost-indeed, there is a savings-associated with such a fund. I hope we can count on your support, and that of the other members of this Committee.
Security
Mr. Chairman, I want to reemphasize the high priority I place on ensuring that USAID employees have a safe working environment, both at home and abroad. As you know I was the United States Ambassador in Dar-es-Salaam just before the August 1998 bombing of the American embassy in Tanzania. I worked with many of the victims of that were killed in that horrific terrorist act. Security is not just another management issue for me. I will continue to work with the Department of State and the Office of Management and Budget to meet our security needs.
The Operating Expense budget for FY 2000 included $15 million for new USAID offices in Tanzania, within the Embassy compound. An additional $50 million is included in the State Department's FY 2001 budget for USAID facilities in the construction of new Embassy compounds in Kenya and Uganda.
USAID has adopted a policy of co-location, where feasible, with other U.S. government agencies abroad. The Department of State and the Office of Management and Budget have agreed to factor in the needs of USAID when planning new Embassy facilities. Current plans anticipate the construction of new USAID facilities on Embassy compounds in seven countries: Kenya, Tanzania, Uganda, Angola, Croatia, Nigeria and Peru.
Beyond these major construction projects, we have prioritized our needs for enhancement or relocation of USAID offices overseas. We have relocated five Missions to more secure premises, and are in the process of moving two more. Security enhancement projects are planned at 15 current locations.
In the United States, we are working with the General Services Administration (GSA), which has primary responsibility for security at the Ronald Reagan Building. Although we still have concerns about building security, we feel that progress has been made.
We appreciate the Committee's guidance in last year's report on strategic planning for long term overseas physical security requirements. We are working on a written response to your direction, which we expect to give you by the end of June.
Mr. Chairman, Congresswoman Pelosi, President Kennedy once said that the United States would "...pay any price, bear any burden, meet any hardship, support any friend, or oppose any foe to assure the survival and success of liberty." I believe Americans still hold that true today.
But liberty and its manifestation, democracy, cannot magically be created from the ashes of tyranny or totalitarianism. It takes time, it takes work, and most importantly, it takes political will. Those used to fearing their government understandably cannot the next day participate in it. Those who grew used to looking over their shoulder need time to learn to look to the horizon. The United States government has a long history of helping these people through its foreign assistance programs.
Foreign assistance is not a partisan issue: USAID's levels were highest during the Reagan Administration. Of course, this was partly due to the Cold War, which was fought not just in Washington and Moscow but also on the African veldt and the in the Caribbean Basin. But it was also partly because over the years one thing has remained constant-events that take place half a world away inevitably have repercussions on us here in America.
By helping to strengthen democracy and prevent and mitigate disasters, USAID helps lay the foundations for a more stable, peaceful world. It's that simple. Today, Mr. Chairman, I ask for your help, and your support, to take one more step toward this world.
The new century is still in its infancy. As the poet Robert Frost wrote, we stand today before two roads. One leads to a greater involvement in the world, one leads to greater isolation. It is up to all of us here to help choose which road to take. But one thing is for sure: our choice will make all the difference.
Thank you.
This is an archived USAID document retained on this web site as a matter of public record.
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