Foreign operations and related programs.
Treasury Technical Assistance and Debt Restructuring ($ in thousands) FY 2012 FY 2013 Actual CR (1/) Treasury Technical Assistance and Debt Restructuring 39,000 39,229 Technical Assistance--Enduring 25,448 25,604 Technical Assistance--Overseas Contingency Operations 1,552 1,552 Debt Restructuring--Enduring 12,000 12,073 ($ in thousands) FY 2014 Increase / Request Decrease from FY 2012 Treasury Technical Assistance and Debt Restructuring 23,500 -15,500 Technical Assistance--Enduring 23,500 -1,948 Technical Assistance--Overseas Contingency Operations -- -1,552 Debt Restructuring--Enduring -- -12,000 (1/) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
Treasury Technical Assistance
The FY 2014 Request includes $23.5 million for Treasury's Office of Technical Assistance (OTA). This small program achieves big objectives as it fosters economic growth by enabling a government to provide better services for its citizens and reduce dependency on foreign aid. For over 20 years, OTA has helped developing countries build effective financial management systems--a core element of a well-functioning state. These financial management systems include: building efficient revenue collection, well-planned and executed budgets, judicious debt management, sound banking systems, and strong controls to combat corruption and other economic crimes. The program provides significant, cost-effective value for U.S. development, foreign policy, and national security objectives.
No funding is requested for the Debt Restructuring account in FY 2014, though the request for the Economic Support Fund includes authorization to transfer up to $300 million to cover the cost of Heavily Indebted Poor Country (HIPC) debt relief for Sudan, should the Secretary of State determine that Sudan has made progress along various fronts the U.S. has identified as pre-conditions for any U.S. support for debt relief, including implementing agreement reached by the Governments of Sudan and South Sudan under the Comprehensive Peace Agreement and other legislative requirements related to HIPC debt relief, including determinations on human rights and state sponsorship of terrorism.
International Narcotics Control and Law Enforcement ($ in thousands) FY 2012 FY 2013 Actual CR (1/) International Narcotics Control and Law Enforcement 1,635,705 2,051,199 Enduring 1,061,100 1,067,594 Overseas Contingency Operations (2) 574,605 983,605 ($ in thousands) FY 2014 Increase / Request Decrease from FY 2012 International Narcotics Control and Law Enforcement 1,473,727 -161,978 Enduring 1,129,727 68,627 Overseas Contingency Operations (2) 344,000 -230,605 (1/) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175). (2/) The FY 2012 OCO Actual reflects the transfer of $409 million from the International Narcotics Control and Law Enforcement account to the Economic Support Fund ($285.5 million), Transition Initiatives ($37 million), Nonproliferation, Antiterrorism, Demining and Related Programs ($0.5 million), and Peacekeeping Operations ($86 million) accounts.
The FY 2014 International Narcotics Control and Law Enforcement (INCLE) enduring request of $1,129.7 million will support country and global programs critical to combat transnational crime, disrupt illicit trafficking, and assist partner nations to build their capacities to extend their reach of justice under the rule of law. INCLE-funded programs seek to close the gaps between law enforcement jurisdictions and strengthen weak or corrupt law enforcement institutions. FY 2014 INCLE funds are focused where security situations are most dire, and are used in tandem with host country government resources in order to maximize impact.
The INCLE request recognizes criminal networks disrupt U.S. trade, licit productivity and economic opportunities, while creating security vulnerabilities for U.S. citizens around the world. The FY 2014 INCLE request will continue to address national and personal security concerns in strategically important geographic regions such as the Western Hemisphere, South Central Asia, and Near East Asia. The request also focuses on emerging threats to stability and regional security in Central Asia and Africa. The FY 2014 INCLE-OCO request includes funding for Afghanistan.
* South Sudan ($22 million): Funding will be used to develop the Republic of South Sudan's capacity to provide civilian security and basic justice services. Funds will support technical assistance and training for South Sudan's criminal justice sector officials, both through bilateral programs and through support to the UN Mission in South Sudan. INCLE programs will enhance short and long-term stability as South Sudan transitions domestic security responsibility away from the military to the South Sudan National Police Service and develops its justice and correctional institutions.
* Liberia ($11.7 million): As the United Nations Mission in Liberia (UNMIL) draws down its military forces; assistance will support the gradual transition of security responsibilities to the Government of Liberia. Assistance will continue to provide a U.S. civilian police contribution to UNMIL as well as bilateral support to the Liberia National Police, other civilian law enforcement agencies (including counternarcotics efforts), the justice sector, and the judiciary.
* Africa Regional ($17 million): The request includes funding for three programs covering different regions in Africa that focus on countering terrorism and reducing transnational threats: the Trans-Sahara Counter-terrorism Partnership (TSCTP), the Partnership for Regional East African Counter Terrorism (PREACT), and the West Africa Regional Initiative (WARSI). Both TSCTP and PREACT focus on enhancing the capabilities of partner nations to prevent and respond to terrorism in their respective regions. WARSI focuses on enhancing rule of law, promoting security sector reform, and building partner nations' capacity to counter transnational threats, including narcotics trafficking.
East Asia and the Pacific
* Indonesia ($10.1 million): Assistance programs in Indonesia will strengthen and professionalize criminal justice sector institutions, including police and prosecutors. In addition to broad reform and institution-building efforts, the programs will support specialized capacity to investigate, interdict, and prosecute money laundering, terrorism, and other transnational crimes. INCLE funding will also support the Indonesian Government's counternarcotics efforts.
* Philippines ($8 million): Funding for the Philippines will build on previous years' achievements by broadening and deepening Philippine criminal justice sector institutional capacity. Funds will support police training and infrastructure development in the southern Philippines to shore up internal stability and build police investigative capacity in the wake of the Philippine military's withdrawal. In the justice sector, funds will support leadership development in the judiciary and prosecutors' offices and add a greater focus on anti-corruption assistance.
Europe and Eurasia
* Kosovo ($10.7 million): U.S. assistance in Kosovo will support efforts to increase the capacity, professionalism, and accountability of law enforcement and justice sector institutions. Funds will be used to support the U.S. contribution to the European Union's rule of law mission; continue efforts to create and institutionalize democratic legal structures that meet international standards; and improve Kosovo's ability to investigate and prosecute complex criminal cases, such as war crimes, organized crime, and corruption.
* Bosnia and Herzegovina ($6.7 million): Funding for Bosnia and Herzegovina will support programs designed to strengthen and professionalize Bosnian law enforcement and justice sector institutions. Specifically, funds will support efforts to increase the use of advanced investigative skills of the police and prosecutors, improve the trial advocacy capacity of state and sub-state level prosecutors, and strengthen the role of the judge as a neutral arbiter. Resources will also be used to support victim witness support offices at the sub-state level, bolster efforts to improve court security, and enhance police-prosecutor cooperation, with special emphasis on corruption and war crimes cases.
* West Bank and Gaza ($70 million): Assistance in West Bank and Gaza will continue to focus on reforming the security sector, and sustaining and maintaining the capabilities of the security forces have benefitted from U.S. Government- provided training, equipment, and infrastructure. Greater emphasis on technical assistance, including the continuation of infrastructure support and initial, basic, refresher and specialized training to the security forces, will encourage Palestinian Authority Security Forces to be more self-sufficient. Funding also will be used to replenish worn security force equipment. Technical assistance and project support will be provided to the Palestinian Authority Ministry of Interior to improve its ability to manage and provide oversight over the security forces. Additional training, equipment, infrastructure support, and technical assistance will be provided for the justice and corrections sectors to ensure their development keeps pace with the rising performance of the security forces.
* Iraq ($23.1 million): In FY 2014, the Administration will continue rule of law, anti-corruption, and drug demand reduction programming in Iraq to build on progress in combating corruption, promoting judicial security, and advancing professional development within the criminal justice sector. To maintain strong U.S. relationships with promising Iraqi police leaders and support their professional development, the FY 2014 request seeks funding for an annual International Police Education and Training (IPET) program. This modest program would establish training fellowships in the United States. IPET would complement the ongoing U.S.-based police training program administered by the International Association of Chiefs of Police.
* Lebanon ($13.9 million): Support for Lebanon's security forces is a key component of U.S. efforts to strengthen the institutions of the Lebanese state, promoting stability and security in both Lebanon and the region. Funding will continue to improve the capacity of the Internal Security Forces (ISF) to exert sovereign authority throughout Lebanese territory, which is critical to the successful implementation of UNSCR 1701. FY 2014 funding will be used to provide technical assistance to the ISF to increase their professionalism and continue their shift in orientation toward the protection of, and service to, the Lebanese population, while improving country-wide perceptions of the ISF as a professional, non-sectarian institution. Additionally, funding will continue to support corrections reform efforts to improve prison management and operations.
* Tunisia ($8 million): U.S. program assistance will support the ongoing police reform process, including Tunisian efforts to make civilian law enforcement institutions more accountable and transparent; enhance the professionalism, independence, and accountability of the judiciary; and enhance the capacity of the Tunisian correctional system to manage prisons and detention centers in a safe, secure, humane, and transparent fashion.
* Egypt ($4.1 million): Ongoing unrest in Egypt and recent clashes between security forces and protestors draw attention to the important role of police reform in Egypt's post-Mubarak transition and the need for effective, democratic security institutions. U.S. foreign assistance will support reforms in the police and justice sectors to help Egypt develop institutions that are professional, accountable, and responsive to the public.
South and Central Asia
* Afghanistan ($160 million): As the United States reduces the size and scope of its presence in Afghanistan; we are focusing programs on long-term sustainability and increased transfer of skills and responsibility to the Afghan Government and civil society partners. We are aggressively working to drive down costs of programs by moving from commercial contractor implementers to international organizations and grantees, and by increasing reliance on Afghan professionals. The FY 2014 INCLE request will support training, mentoring, equipment, and infrastructure support in key ministries involved in the administration of justice, including corrections. The request also supports counternarcotics programs, including strengthening the Afghan Government's ability to combat illicit cultivation, production, trafficking, and consumption. Funds will be used for all program support, including aviation.
* Pakistan ($45 million): In order to support the Administration's national security priorities in Pakistan, the FY 2014 INCLE request will continue to focus on strengthening Pakistan's criminal justice sector. Funds will be used to enhance the capacities of Pakistan's civilian law enforcement agencies through training, equipment, and infrastructure assistance that increases their ability to provide security in Pakistan, particularly in areas along the border with Afghanistan. Funding will also be used to support the training of prosecutors, judges, and corrections officials. Counternarcotics assistance will continue efforts to reduce the presence and use of narcotics in Pakistan through interdiction, crop control, and demand reduction programs.
* Central Asia Counternarcotics Initiative (CACI) ($7 million): This initiative will improve the ability of Central Asian countries to disrupt drug trafficking originating from Afghanistan and dismantle related criminal organizations through effective investigation, prosecution and conviction of mid- to high-level traffickers. The U.S. Counternarcotics Strategy for Afghanistan calls for enhanced regional and international community support for Afghan-led counternarcotics efforts, expanded U.S. Government counternarcotics engagement with Afghanistan's neighbors and regional actors, and strengthening of counternarcotics cooperation between Afghanistan and neighboring countries.
* Tajikistan ($7 million): Assistance to Tajikistan will promote security sector reform and the development of democratic institutions through border security, police reform, and justice reform programming. With the impending withdrawal of U.S. troops from Afghanistan, these resources are intended to help mitigate potential instability and build the capacity of Tajikistan's law enforcement agencies to address transnational threats emanating from Afghanistan and the broader region.
* Mexico ($148.1 million): With the FY 2014 INCLE request, the United States and Mexican Governments will continue to focus on institutionalizing the rule of law, disrupting and dismantling criminal organizations, building a 21st Century border, and building strong and resilient communities. INCLE-funded programs will focus on developing Mexico's rule of law institutions through training, technical assistance, and limited equipment purchases. Programs will continue to provide assistance to federal and state criminal justice institutions, including law enforcement, prosecutorial, judicial, and corrections institutions.
* Colombia ($149 million): Funding will support Colombian-led consolidation efforts to expand security, reduce drug trafficking and cultivation of illicit crops, and promote economic development through a comprehensive whole-of-government approach in former conflict and key rural areas. INCLE resources will also help the Colombian National Police to assume additional security responsibilities and combat the criminal drug organizations, the BACRIMs or "bandas criminates " Resources dedicated for aerial and manual eradication of illicit crops will continue to significantly reduce cocaine production, while support for interdiction efforts will assist in preventing the annual arrival of multiple metric tons of drugs to the United States and other markets. Funding will also support Colombia's judicial institutions, enhancing the protection of human rights and developing local capacity to address sensitive and complex criminal cases.
* Peru ($26.3 million): The FY 2014 INCLE request will support efforts by the Government of Peru to combat the illicit drug industry, including efforts to extend state presence in the Monzon region as well as the Apurimac and Ene River Valleys in order to oppose drug traffickers aligned with the Shining Path terrorist group. FY 2014 INCLE funds will support drug interdiction and coca eradication operations, as well as precursor chemical seizures, improved controls at ports and airports, judicial reform, modernized and refurbished police stations, bases and equipment, and increased capacity amongst rule of law actors.
* Western Hemisphere Regional ($125 million): INCLE funding will support the Central America Regional Security Initiative (CARSI) ($100 million) and the Caribbean Basin Regional Security Initiative (CBSI) ($25 million). CARSI funds will support training and build capacity of law enforcement and rule of law institutions throughout Central America. Among other efforts, activities will address border and port security; support for vetted units and maritime and land interdiction; law enforcement capacity to address transnational crime, including anti-gang training; regional aviation; and efforts to combat impunity. In support of CBSI, INCLE funding will continue efforts to combat illicit trafficking and organized crime, increase port and border security, and strengthen the rule of law through training and technical assistance. Funding will support efforts to promote information sharing and collaboration among CBSI partner nations, while enhancing the capacity of criminal justice and regional security institutions, such as the Regional Security System in the Eastern Caribbean.
These programs target challenges to transnational crime and counternarcotics efforts, and policing in peacekeeping and crisis response operations worldwide. Key components include:
* Inter-regional Aviation Support ($40 million): Funding will provide centralized core services for counternarcotics and border security aviation programs. These programs involve fixed- and rotary-wing aircraft deployed worldwide.
* Program Development and Support ($39.6 million): Funding will provide for annual costs of direct hires, travel, equipment, communications and utilities, and other support services to design, implement, evaluate and oversee INCLE programs. FY 2014 funds include a one-time cost associated with the relocation of Washington-based INL personnel into one central location.
* International Law Enforcement Academy (ILEA) ($24 million): Funds will support existing ILEAs in Bangkok, Budapest, Gaborone, Roswell, San Salvador, and the Regional Training Center (RTC) in Lima. Additionally, funds made available to support the Shared Security Partnership initiative will be used to support emerging regional security priorities in West Africa to enhance regional and local-level criminal justice institutions. The focus will be on facilitating regional cooperation and capacity building by providing strategic training at the West Africa RTC in Accra, Ghana that addresses high-profile crimes and a wide array of existing threats to U.S. national security posed by terrorist and criminal organizations.
* Office to Monitor and Combat Trafficking in Persons ($18.7million): These funds will assist committed governments of countries ranked as Tier 3, Tier 2 Watch List, and some Tier 2 in the 2012 annual Trafficking in Persons Report to improve their capacity to combat trafficking in persons through rule of law and criminal justice sector improvements as well as victim protection services.
* Demand Reduction ($12.5 million): Funding for Demand Reduction will address pressing regional and global drug-related threats posed by methamphetamine, opiates such as heroin and opium, crack cocaine, and high-risk drug-using behavior that promote HIV/AIDS. Funding supports an innovative training model to certify addiction counselors, sub-regional training centers that disseminate best-practice approaches; drug-free community coalitions that target illegal drugs; research and demonstration that improve women's treatment and minimize child addiction; and the development of science and technology to better detect, quantify, and understand drug use and its health-related consequences.
* Anti-Crime Programs ($12.5 million): Funding will support efforts to address corruption and kleptocracy, money laundering and financial crimes, border security and alien smuggling, intellectual property and cyber crime, and transnational and organized crime.
* Critical Flight Safety Program ($11.1 million): Funding will provide programmed depot-level maintenance and aircraft/aircrew safety of flight for the fixed- and rotary-wing aircraft fleet supporting counternarcotics and border security aviation programs worldwide.
* Civilian Police and Rule of Law Program ($4.5 million): Funds support enhanced pre-deployment training of advisors sent overseas, and a center of excellence to improve the Department of State's programming and ability to promote law enforcement, increase women's participation in programs, improve the quality and consistency of curricula delivered, and expand domestic law enforcement partnerships.
* International Police Peacekeeping Operations Support (IPPOS) Program ($2.5 million): Funds will provide training and capacity building support for police-contributing-countries to deploy highly trained and well-equipped officers to peacekeeping and stabilization missions, as well as help the United Nations with coordination, policy, and projects in support of police peacekeeping missions.
Details of the FY 2014 OCO Request for INCLE are addressed in the OCO chapter.
Nonproliferation, Anti-Terrorism, Demining ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 Nonproliferation, Anti- Terrorism, Demining 711,270 714,381 616,125 -95,145 Enduring 590,113 593,724 616,125 26,012 Overseas Contingency Operations (2) 121,157 120,657 -- -121,157 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175). (2) The FY 2012 OCO Actual level reflects the transfer of $.5 million from the International Narcotics Control and Law Enforcement account to the Nonproliferation, Anti-Terrorism and Related Programs account.
The FY 2014 Nonproliferation, Anti-Terrorism, Demining and Related Programs (NADR) request of $616.1 million will support critical programs that promote peace and security. The request sustains funding for the voluntary contribution to the International Atomic Energy Agency to demonstrate strong U.S. support for the agency, and includes an increase for the Counterterrorism Engagement program to expand Global Counterterrorism Forum rule of law-focused initiatives in the Middle East and in other priority countries.
* The voluntary contribution to the International Atomic Energy Agency ($88 million) supports programs in nuclear safeguards, nuclear safety and security, nuclear energy, and the peaceful use of nuclear science technologies. This request underscores the U.S. commitment to the organization, particularly its nuclear safeguards program.
* The Global Threat Reduction (GTR) program ($63.5 million) supports tailored activities aimed at reducing the threat of terrorist or state acquisition of WMD materials and expertise. Initiatives include strengthening security for dangerous biological materials and potentially dangerous chemicals, engagement with scientists with WMD-applicable expertise, and decreasing the likelihood that terrorists could gain the technical expertise needed to develop an improvised nuclear device. GTR priorities include Yemen, Pakistan, and Iraq, where the combined risks of WMD proliferation and terrorism are greatest.
* The Export Control and Related Border Security program ($54 million) seeks to prevent states and terrorist organizations from acquiring WMD, their delivery systems, and destabilizing conventional weapons by helping partner countries to develop comprehensive strategic trade control and related border security systems. The program builds capacity to ensure that transfer authorizations support only legitimate trade, and to detect and interdict illicit transfers at borders.
* The contribution to the Preparatory Commission of the Comprehensive Nuclear-Test-Ban Treaty Organization ($31 million) helps to fund the establishment, operation, and maintenance of the worldwide International Monitoring System as well as Preparatory Commission activities, including the development of the On-Site Inspection element of the Treaty's verification system. An additional $1 million contribution will fund specific projects to increase the effectiveness and efficiency of the Treaty's verification regime.
* The Nonproliferation and Disarmament Fund (NDF) ($25 million) develops, negotiates, and implements carefully-vetted programs to destroy, secure, or prevent the proliferation of weapons of mass destruction (WMD), WMD-related materials and delivery systems, and destabilizing conventional weapons. NDF undertakes rapid-response activities to reduce threats that are unforeseen and unanticipated around the globe, and is currently engaged in various activities in South Asia and the Middle East.
* The WMD Terrorism program ($5 million) undertakes specialized, targeted projects to improve international capacities to prepare for and respond to a terrorist attack involving weapons of mass destruction in support of the Global Initiative to Combat Nuclear Terrorism, and to help develop capacity among our international partners to deter, detect, and respond to nuclear smuggling.
* The Anti-Terrorism Assistance (ATA) program ($169.5 million) has long been the U.S. Government's flagship program for counterterrorism law enforcement assistance to critical partner countries. ATA programs provide training, mentoring, advising, and equipment to help partner countries build or enhance a wide range of capabilities to detect, deter, and apprehend terrorists, including law enforcement investigations, border security, protection of critical targets, leadership and management of counterterrorism incidents, regional coordination and cooperation, critical incident management, and cyber security. ATA funding also supports the Regional Strategic Initiative, a global program that provides anti-terrorism training and equipment focused on addressing regional challenges.
* The Terrorist Interdiction Program/Personal Identification, Secure Comparison, & Evaluation System (TIP/PISCES) program ($25.1 million) provides computerized screening systems, periodic hardware and software upgrades, and technical assistance and training to partner nations that enable immigration and border control officials to quickly identify suspect persons attempting to enter or leave their countries. The request provides funds for the deployment of PISCES installations, including biometric enhancements, to critical partner and candidate nations vulnerable to terrorist travel--such as Iraq, Afghanistan, Yemen, Kenya, Thailand, and, since June 2012, Niger, Burkina Faso, and Chad, in addition to 12 other nations. The request also supports research, development and testing of enhanced capabilities to address evolving U.S. and host nation requests for customized interfaces with local and international databases, as well as deployment of portable PISCES installations for remote locations lacking infrastructure, while ensuring that the PISCES system maintains standards in accordance with international norms.
* The Counterterrorism Financing (CTF) program ($15 million) provides funding for anti-money laundering and counterterrorism finance (AML/CTF) training and technical assistance initiatives to enable our frontline partners to detect, disrupt, and dismantle money laundering and terrorist financing networks. CTF capacity building efforts will include developing AML/CTF legal frameworks and regulatory structures, establishing active and capable financial investigative units, and strengthening the capabilities of other relevant law enforcement, prosecutorial, and judicial institutions. The CTF program generally works through the interagency Terrorist Finance Working Group (TFWG) to leverage AML/CTF expertise across the U.S. government to develop and implement comprehensive AML/CTF training and technical assistance. CTF also works with the Department of State Bureau of International Narcotics and Law Enforcement Affairs to ensure that recipients of funding implement action plans which comply with international standards against money laundering and the financing of terrorism.
* Counterterrorism Engagement (CTE) program ($10 million) supports key bilateral, multilateral, and regional efforts to build political will among foreign government officials and civil societies to address shared counterterrorism challenges. By working with other government agencies and with nongovernmental organizations, CTE programs support initiatives and training, including through the United Nations and regional bodies to promote the rule of law and human rights while countering terrorism and raising awareness of the United Nations Global Counterterrorism Strategy and implementation of UN counterterrorism resolutions. This funding will also support activities of the Global Counterterrorism Forum, a multilateral forum that provides a platform for senior CT policymakers and experts to engage on a sustained basis to build and mobilize the expertise and resources needed to identify and address critical civilian counterterrorism capacity-building challenges in key regions and countries around the globe.
* The Countering Violent Extremism (CVE) program ($3 million) supports targeted counter-recruitment interventions for at-risk communities in high priority countries, and aims to build resilience against violent extremist narratives. NADR-funded CVE programming focuses on building the capacity of partner countries' law enforcement institutions to support community-level initiatives against violent extremism and address violent extremist threats in prisons (de-radicalization).
Regional Stability and Humanitarian Assistance
* The Conventional Weapons Destruction (CWD) program ($126 million) advances U.S. security and humanitarian interests by reducing the harmful worldwide effects of at-risk, illicitly-proliferated, and indiscriminately-used weapons of war. CWD activities mitigate security risks associated with excess, obsolete, unstable, or poorly-secured/maintained weapons and munitions stockpiles, including man-portable air defense systems (MANPADS), by assisting countries with destruction programs; improving physical security at storage facilities; and enhancing stockpile management practices. CWD also confronts the dangers posed by landmines and other explosive remnants of war (ERW) by surveying hazard areas, removing landmines and ERW, educating vulnerable populations, and assisting victims. CWD priorities for FY 2014 include preventing illicit small arms/light weapons (SA/LW) proliferation from Syria, denying SA/LW to destabilizing forces in North Africa and the Sahel, battle area clearance in the Middle East and North Africa/Sahel, clearing U.S.-origin ERW in Southeast Asia and Oceania, and reducing the threat of illicitly-held or at-risk MANPADS through safe and effective destruction efforts.
Peacekeeping Operations ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 Peacekeeping Operations 509,818 385,671 347,000 -162,818 Enduring 302,818 304,671 347,000 44,182 Overseas Contingency Operations (2) 207,000 81,000 -- -207,000 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175). (2) The FY 2012 OCO Actual level reflects the transfer of $40 million from the Pakistan Counterinsurgency Capability Fund and $86 million from the International Narcotics Control and Law Enforcement accounts to the Peacekeeping Operations account.
The FY 2014 request for Peacekeeping Operations (PKO) of $347 million will help diminish and resolve conflict, enhance the ability of states to participate in peacekeeping and stability operations, address counterterrorism threats, and reform military establishments into professional military forces with respect for the rule of law in the aftermath of conflict.
The request supports three ongoing regional peacekeeping missions: the African Union Mission in Somalia (AMISOM), the Multinational Force and Observers (MFO) mission in the Sinai, and the new African-led International Support Mission to Mali (AFISMA). The request also supports the ability of states to participate in peacekeeping operations through the Global Peace Operations Initiative (GPOI); enhances the ability of states to address counterterrorism threats through the Trans-Sahara Counterterrorism Partnership (TSCTP) and the Partnership for Regional East Africa Counter Terrorism (PREACT); supports long-term reforms to military forces in the aftermath of conflict to transform them into professional military forces with respect for the rule of law, including forces in South Sudan, Liberia, the Democratic Republic of the Congo, Somalia, Cote d'Ivoire, and Guinea; addresses regional conflict stabilization and border security issues in Africa; provides military professionalization institutional development; and provides regional maritime security training in Africa.
* Mali ($83.8 million): Requested funds will continue to support AFISMA, which began in January 2013 to stabilize Mali. Funds will support basic logistics support (e.g. food, fuel, and water) for Troop Contributing Countries (TCCs) and Police-Contributing Countries (PCCs); non-lethal equipment for TCCs and PCCs; training of TCCs; possible advisory support; and strategic transport of personnel and equipment.
* Global Peace Operations Initiative ($75 million): FY 2014 funds will continue to provide training, equipment, and sustainment of peacekeeping troops. In addition, consistent with the shift begun in FY 2010 from direct training of peacekeepers to a focus on building a sustainable national peacekeeping capacity, activities will focus on strengthening partner-country capabilities to train their own peacekeeping units by supporting the development of national peacekeeping trainer cadres; peacekeeping training centers; and other self-sufficiency oriented programs, events, and activities. Funds will also enable the United States to continue to support the deployment of troops to peacekeeping operations worldwide. Some FY 2014 funds may be used to continue GPOI support for collaboration with the Center for Excellence in Stability Police Operations. Finally, PKO funds will continue to underwrite an evaluation and metrics mechanism, including measures of effectiveness, to ensure GPOI is achieving its goals.
* Somalia ($70 million): FY 2014 funds will be used to continue voluntary support to AMISOM, including training and advisory services, equipment, and transportation of forces from current and new troop-contributing countries. Given the newly recognized government of Somalia and the security gains and expansion made by AMISOM, increased support to the national Somali military forces is critically important. Accordingly, PKO funds will be used to professionalize and provide operational support to Somali security forces, to ensure their capability in contributing to national peace and security in support of the international peace process efforts, and as part of a multi-sector approach to post-conflict security sector reform. Funds to pay the United States' portion of the UN assessment for support of the UN Support Office for the AMISOM (UNSOA) are being requested in the Contributions to International Peacekeeping Activities account.
* South Sudan ($38 million): FY 2014 funds will be used to continue long-term efforts to build and transform the Sudan People's Liberation Army in South Sudan from a guerilla army to a professional military force subordinate to civilian leadership and protective of human rights. Funds will continue to provide support for this transformation process, including the refurbishment, operations, and maintenance of training centers and divisional headquarters; strategic and operational advisory assistance; unit and individual professional training; and communications and other non-lethal equipment for the military.
* Multinational Force and Observers ($28 million): The FY 2014 request includes funds to continue the U.S. contribution to the Multinational Force and Observers mission in the Sinai, which supervises the implementation of the security provisions of the Egyptian-Israeli Peace Treaty, a fundamental element of regional stability.
* Africa Regional ($21.2 million): FY 2014 funds will be used to support the following programs.
* Partnership for Regional East Africa Counterterrorism (PREACT) ($10 million): The FY 2014 request continues support for PREACT, a multi-disciplinary counterterrorism initiative in East Africa that is based upon best practices of the TSCTP. Funds will support advisory assistance, and training and equipping of counterterrorist military units in the East Africa region.
* Africa Conflict Stabilization and Border Security (ACSBS) ($7.2 million): The FY 2014 request continues efforts to address and stabilize regional crises on the African continent. In particular, funds will support activities in areas such as the Great Lakes region in Central Africa, the Mano River region in West Africa, and the Horn of Africa. Examples include countering the Lord's Resistance Army in Central and East Africa, and addressing spillover from the conflict in Sudan into neighboring Chad and the Central African Republic. Funds will support monitoring teams, advisory assistance, training, logistical support, infrastructure enhancements, and equipment. Funds will also support the military component of broader security sector reform efforts in Guinea through training, advisory services, limited infrastructure projects, and non-lethal equipment.
* Africa Maritime Security Initiative (AMSI) ($2 million): The FY 2014 request includes funds to increase African maritime security capabilities through the provision of regional training activities (including the training component of the Department of Defense's Africa Partnership Station program) and provide modest training equipment. By enhancing U.S. partners' maritime enforcement capabilities, the initiative helps to develop African maritime forces that can better respond to piracy, terrorist activity, illegal fishing, environmental threats, and trafficking in drugs, arms, and humans.
* Africa Military Education Program (AMEP) ($2 million): The FY2014 request will support professionalization at the institutional level of select African partner nations. This program will complement, but not duplicate, the International Military Education Training program which focuses on direct training of African military and select civilian personnel primarily in the United States, although some training occurs in country. AMEP funds will provide training, advisory support, and potentially equipment and supplies to African military training institutions to enhance their ability to professionalize their militaries, including an appreciation of civilian control of the military, respect for the rule of law, and human rights.
* Trans-Sahara Counterterrorism Partnership (TSCTP) ($16.1 million): The FY 2014 request continues support for the TSCTP, a multi-disciplinary counterterrorism initiative designed to counter terrorist threats, strengthen regional capacity, promote interoperability, and facilitate coordination between countries. Funds will support advisory assistance, modest infrastructure improvement, and training and equipping of counterterrorist military units in the West and North African regions.
* Democratic Republic of the Congo ($11 million): FY 2014 funds will be used to continue long-term efforts to reform the military in the Democratic Republic of the Congo (DRC) into a force capable of maintaining peace and security, to include development of the military justice system and sustaining a light infantry battalion to stabilize eastern DRC. Funds will support advisory assistance at the strategic and operational levels, training, equipment, and infrastructure improvements that contribute to the professionalization of the Congolese military.
* Cote d'lvoire ($2 million): The FY2014 request will continue to support the military component of broader security sector reform efforts in Cote d'Ivoire. Funds will support training, advisory support, limited infrastructure, and non-lethal equipment.
* Liberia ($2 million): The FY 2014 request continues to support the long term effort to transform the Liberian military into a professional, 2,100-member-strong armed force that respects the rule of law and has the capacity to protect Liberia's borders and maintain adequate security in the country. Funds will primarily provide for operational support of existing infrastructure of the new military and some advisory and/or training support.
International Military Education and Training ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 International Military Education and Training 105,788 106,435 105,573 -215 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
The FY 2014 request for the International Military Education and Training (IMET) program is $105.6 million. As a key component of U.S. security assistance, IMET promotes regional stability and defense capabilities through professional military training and education. Through professional and technical courses and specialized instruction, most of which are conducted at military schoolhouses in the United States, the program provides students from allied and friendly nations with valuable training and education on U.S. military practices and standards. IMET students are exposed to the concepts of democratic values and respect for internationally-recognized standards of human rights both through the courses they attend and through their experience of living in and being a part of local communities across the United States. IMET serves as an effective means to strengthen military alliances and international coalitions critical to U.S. national security goals. IMET also helps to develop a common understanding of shared international challenges, including terrorism, and fosters the relationships necessary to counter those challenges in a collaborative manner.
* Africa ($13.5 million): IMET programs focus on professionalizing defense forces in support of efforts to respond to regional crises and provide for long-term stability on the continent. Major IMET programs are focused in Kenya, Nigeria, Senegal, South Africa, and South Sudan--states critical to long-term regional peace and stability. There is also a new request for Somalia given the recognition of the government of Somalia in January 2013.
* East Asia and the Pacific ($9.3 million): IMET programs in East Asia and the Pacific focus on professionalizing the defense forces of regional partners and developing their skills in counter terrorism. Priority recipients include Indonesia, Malaysia, the Philippines, Thailand, and Vietnam.
* Europe and Eurasia ($29.6 million): IMET programs enhance regional
security and interoperability among U.S., NATO, and European armed forces. Importantly, these programs help to ensure that those nations that fight alongside the United States have officers that understand and appreciate the doctrine and operational tactics of the U.S. military. The largest programs are those in Bulgaria, the Czech Republic, Georgia, Poland, Romania, Turkey, and Ukraine.
* Near East ($20.5 million): IMET programs focus on critical countries such as Egypt, Iraq, Jordan, Lebanon, Morocco, Oman, Tunisia, and Yemen with the purpose of enhancing professionalism, providing the technical training necessary to maintain equipment of United States origin, and increasing awareness of international norms of human rights and civilian control of the military, topics that are critical for the development of security forces in the region in a time of change.
* South and Central Asia ($13.3 million): Major IMET programs in this region include Pakistan, Afghanistan, India, Bangladesh, and the Kyrgyz Republic. This assistance will expose future military leaders to U.S. military practices and values, including respect for the rule of law, human rights, and civilian control of the military, while fostering U.S. security cooperation and improving the professionalism and defense capabilities of partner militaries in areas such as border security and counterterrorism. Programming in South Asia will also focus on increasing the capacity of partners to strengthen maritime security in the region.
* Western Hemisphere ($14.4 million): IMET programs in the Western Hemisphere focus on professionalizing defense forces, including those of Colombia, El Salvador, and Mexico, and enhancing their ability to respond to regional security challenges. Priorities include promoting the continued professionalization and modernization of Colombian military forces with a focus on human rights and strengthening the Government of Mexico's efforts to professionalize Mexican military personnel, to further institutionalize respect for human rights and the rule of law in military operations, and to improve and expand the military's capacity to fight international crime.
Foreign Military Financing ($ in thousands) FY 2012 FY 2013 Actual CR (1) Foreign Military Financing 6,312,000 6,343,885 Enduring 5,210,000 5,241,885 Overseas Contingency Operations 1,102,000 1,102,000 ($ in thousands) FY 2014 Increase / Request Decrease from FY 2012 Foreign Military Financing 5,956,959 -355,041 Enduring 5,445,959 235,959 Overseas Contingency Operations 511,000 -591,000 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
The FY 2014 enduring request for Foreign Military Financing (FMF) of $5,446 million furthers U.S. interests around the world by ensuring that Coalition partners and friendly foreign governments are equipped and trained to work toward common security goals and share burdens in joint missions. FMF promotes U.S. national security by contributing to regional and global stability, strengthening military support for democratically-elected governments, and containing transnational threats including terrorism and trafficking in narcotics, weapons, and persons. Increased military capabilities establish and strengthen multilateral coalitions with the United States, and enable friends and allies to be increasingly interoperable with U.S., regional, and international military forces. FMF assistance also supports ongoing efforts to incorporate the most recent North Atlantic Treaty Organization (NATO) members into the organization, support prospective NATO members and Coalition partners, and assist critical Coalition partners in Afghanistan.
The FY 2014 FMF request maintains prior-year assistance levels for Israel, Egypt, and Jordan, and continues the planned reduction in funding for Iraq, which is detailed in the Overseas Contingency Operations (OCO) section. In addition, the request supports funding for Coalition partners and allies, and is consistent with other requirements to promote U.S. national security, fight extremism, secure peace in the Middle East, and to increase our focus on Asia.
* Near East ($4,840 million): The majority of FY 2014 FMF funding will provide continued assistance to the Middle East and North Africa region, including support for Israel in accordance with the Memorandum of Understanding; support for Jordan's force modernization, border surveillance, and counterterrorism efforts; and programs that consolidate gains in the development of counterterrorism capabilities and professional militaries. The U.S. Government expects to continue its ongoing assistance to Egypt in order to maintain the security pillar that is a cornerstone of U.S. regional strategic interests, and to continue programs that foster a disciplined, well-trained Egyptian military that is respectful of human rights and capable of securing its borders from terrorists and illicit trafficking. Funds will also provide an incentive for the government of Lebanon to uphold its international obligations. Since the political situation in the Middle East and North Africa remains fluid, longer-term specifics of the program will be reviewed in light of changing circumstances.
* South and Central Asia ($311.3 million): The FY 2014 request includes $300 million to support Pakistan's security forces by providing equipment and training to enhance their counterterrorism and counterinsurgency capabilities. Elsewhere in the region, assistance will build border and maritime security and counterterrorism capabilities.
* Europe and Eurasia ($86.6 million): In Europe and Eurasia, FMF assistance furthers defense reform, military modernization, and interoperability of recipient country armed forces with the United States and NATO. A key focus of the program is supporting Coalition partners, including Poland, Georgia, Romania, and Bulgaria, to enable the recipients to undertake overseas deployments and peacekeeping missions, lessening the burden on U.S. forces.
* East Asia and the Pacific ($72.5 million): Assistance will meet security challenges by enhancing ties with allies and partners. Programs will support the Administration's rebalance towards Asia by demonstrating U.S. commitment to priority regional security concerns of maritime security and disaster relief, enabling troop-contributing countries to participate in peacekeeping and coalition operations, increasing educational opportunities and English language capacity in support of deeper partnership with the United States, developing mutual understanding, and building the professionalization of partner nations' security forces, including strengthening democratic values and human rights.
* Western Hemisphere ($60.2 million): FMF in the Western Hemisphere supports our partners' efforts to control national territory, modernize defense forces, and secure the southern approaches to the United States. FMF will continue to support Colombia's efforts to ensure that their security gains are irreversible and support the transition of our relationship toward that of a strategic partnership. FMF will also support Mexico's efforts to control national territory, enhance cooperation with the U.S., and support maritime and related security efforts of partner nations in the Caribbean through the Caribbean Basin Security Initiative. Additionally, increased FMF funding to Central America will support partner efforts to control their national territory and maritime borders, denying safe haven and operating areas to transnational criminal organizations and others who drive violence that threatens the security of our partners.
* Africa ($15.3 million): In Africa, assistance will support defense reform, enhance counterterrorism capabilities, promote interoperability, and expand recipient countries' capacity to participate in peacekeeping operations.
Details of the FY 2014 OCO Request for FMF are addressed in the OCO chapter.
Global Security Contingency Fund ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR Request Decrease from FY 2012 Global Security Contingency Fund 23,000 -- 25,000 2,000 Enduring -- -- 25,000 25,000 Overseas Contingency Operations 23,000 -- -- -23,000 (1) FY 2012 OCO Actual level reflects the transfer of $23 million from the Pakistan Counterinsurgency Capability Fund to the Global Security Contingency Fund.
The FY 2014 request of $25 million for the Global Security Contingency Fund will be the third year of the three year pilot initiative, started in FY 2012, to streamline the way the U.S. Government provides assistance to enhance the capabilities of military forces and other security forces responsible for conducting border and maritime security, internal security, and counterterrorism operations, as well as the government agencies responsible for such forces, in response to emergent challenges or opportunities. The Fund is intended to strategically address changing, transnational, asymmetric threats, and emergent security, political, and economic challenges and opportunities. The Fund can also provide support to the justice sector (including law enforcement and prisons), rule of law programs, and stabilization efforts where the Secretary of State determines, in consultation with the Secretary of Defense, that conflict or instability challenges civilian providers to deliver such assistance. Programs under this Fund are jointly developed and funded by the Department of State and the Department of Defense, and implemented primarily by these agencies, the U.S. Agency for International Development, or the most appropriate U.S. government agency.
Special Defense Acquisition Fund ($ in thousands) FY 2012 FY 2013 Actual CR Special Defense Acquisition Fund 100,000 100,000 Foreign Military Sales Trust Fund offset -100,000 -- Offsetting Collections -- -100,000 Net Cost for Special Defense Acquisition Fund -- -- ($ in thousands) FY 2014 Increase / Request Decrease from FY 2012 Special Defense Acquisition Fund 100,000 -- Foreign Military Sales Trust Fund offset -- -- Offsetting Collections -100,000 -- Net Cost for Special Defense Acquisition Fund -- --
The Special Defense Acquisition Fund (SDAF) will allow the United States to better support coalition and other partners, including those participating in U.S. overseas contingency and other operations, by expediting the procurement of defense articles for provision to foreign nations and international organizations.
The FY 2014 request reflects an additional $100 million in new SDAF obligation authority to be funded by offsetting collections. In FY 2014, offsetting collections will be derived from SDAF sales of stock as well as other receipts consistent with section 51(b) of the Arms Export Control Act. The FY 2014 request will support advance purchases of high-demand warfighter support equipment that have long procurement lead times. Long procurement lead times are often the main limiting factor in our ability to provide coalition partners with critical equipment to make them operationally effective in a timely manner. Improving the mechanism for supporting U.S. partners is a high priority for the Departments of State and Defense.
Multilateral Assistance ($ in thousands) FY 2012 FY 2013 Actual CR (1) Multilateral Assistance 2,966,293 2,989,277 International Organizations and Programs (2) 343,905 350,839 International Development Association 1,325,000 1,333,109 International Bank for Reconstruction and Development 117,364 118,083 Global Environment Facility (3) 89,820 90,370 African Development Fund 172,500 173,556 African Development Bank 32,418 32,616 Asian Development Fund 100,000 100,612 Asian Development Bank 106,586 107,238 Inter-American Development Bank 75,000 75,459 Enterprise of the Americas Multilateral Investment Fund 25,000 25,153 Inter-American Investment Corporation 4,670 4,699 European Bank for Reconstruction and Development -- -- Global Agriculture and Food Security Program (4) 135,000 135,826 International Fund for Agricultural Development 30,000 30,184 Clean Technology Fund (3) 184,630 185,760 Strategic Climate Fund (3) 49,900 50,205 IDA Multilateral Debt Relief Initiative 167,000 168,022 AfDF Multilateral Debt Relief Initiative 7,500 7,546 Middle East and North Africa Transition Fund -- -- ($ in thousands) FY 2014 Increase / Request Decrease from FY 2012 Multilateral Assistance 3,196,424 230,131 International Organizations and Programs (2) 320,645 -23,260 International Development Association 1,358,500 33,500 International Bank for Reconstruction and Development 186,957 69,593 Global Environment Facility (3) 143,750 53,930 African Development Fund 195,000 22,500 African Development Bank 32,418 - Asian Development Fund 115,250 15,250 Asian Development Bank 106,586 - Inter-American Development Bank 102,020 27,020 Enterprise of the Americas Multilateral Investment Fund 6,298 -18,702 Inter-American Investment Corporation -- -4,670 European Bank for Reconstruction and Development -- -- Global Agriculture and Food Security Program (4) 135,000 -- International Fund for Agricultural Development 30,000 -- Clean Technology Fund (3) 215,700 31,070 Strategic Climate Fund (3) 68,000 18,100 IDA Multilateral Debt Relief Initiative 145,300 -21,700 AfDF Multilateral Debt Relief Initiative 30,000 22,500 Middle East and North Africa Transition Fund 5,000 5,000 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175). (2) The FY 2012 Actual reflects the transfer of $4.8 million from the International Organizations and Programs account to the Global Health Programs-USAID account. (3) FY 2012 Actual excludes the transfer of $100 million from the Economic Support Fund for the Global Environment Facility ($30 million), the Clean Technology Fund ($45 million), and the Strategic Climate Fund ($25 million). (4) FY 2012 Actual excludes the transfer of $25 million from the Development Assistance account for the Global Agriculture and Food Security Program.
International Organizations and Programs (IO&P)
The FY 2014 request of $320.6 million for the International Organizations and Programs (IO&P) account will advance U.S. strategic goals across a broad spectrum of critical areas by supporting and enhancing international coordination, as well as leveraging resources from other countries. From this account, the United States provides voluntary contributions to international organizations to accomplish transnational goals where solutions to problems can best be addressed globally, such as protecting the ozone layer or safeguarding international air traffic. In other areas, such as development programs, the United States can multiply the influence and effectiveness of its own assistance through support for international programs.
* United Nations Children's Fund ($125 million): U.S. voluntary contributions support the core budget of the United Nations Children's Fund (UNICEF), which provides goods and services directly to the world's neediest children, and contributes to the development of local institutional capacity. UNICEF's development work is closely coordinated with that of U.S. Government and international development agencies.
* United Nations Development Program ($67 million): U.S. voluntary contributions are provided for the United Nations Development Program (UNDP)'s regular budget, which supports its core administrative functions, basic development programming, and specific trust funds targeted in the areas of democratic governance and crisis prevention and recovery.
* United Nations Population Fund ($37 million): The United States continues to support the United Nations Population Fund (UNFPA). Contributions to UNFPA bolster the Fund's continued efforts to reduce poverty, improve the health of women and children, prevent HIV/AIDS, and provide family planning assistance to women in over 150 countries.
* UN Women ($7.5 million): Created in 2010, the UN Entity for Gender Equality and Women's Empowerment (UN Women) works to increase women's political participation, expand women's economic and educational opportunities, reduce violence against women, improve women's health, protect the rights of indigenous women and women with disabilities, facilitate women's political participation in all aspects of peace and security, and counter discrimination against women. This contribution to the core resources of UN Women will support programs and enable policies and programs related to women to be developed and implemented more efficiently.
* International Conservation Programs ($7 million): The United States is invested in several treaties on conservation. One of the key initiatives supported through the U.S. contribution to International Conservation Programs is the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Other initiatives include the UN Convention to Combat Desertification, Ramsar Convention on Wetlands, the newly established Intergovernmental Platform for Biodiversity and Ecosystem Services (IPBES), UN Forum on Forests, International Tropical Timber Organization, and the FAO National Forest Program Facility.
* Multilateral Action Initiative ($1 million): This initiative will allow for timely funding of voluntary contributions to support specific multilateral activities in order to address priority and emerging needs that were not known or did not exist at the time of the Budget submission. The primary aim of this initiative is to allow the United States to fund responses to unanticipated peace and security challenges and other crises, as well as spur innovation and reform in multilateral organizations through timely seed money.
Multilateral Development Banks
The FY 2014 Request for the multilateral development banks (MDBs) is comprised almost entirely of annual commitments negotiated and authorized in previous years. These include a continuation of the capital increases at the International Bank for Reconstruction and Development (IBRD), the Inter-American Development Bank (IDB), the African Development Bank (AfDB), and the Asian Development Bank (AsDB). Investments in multilateral institutions remain a cost-effective way to promote U.S. national security, support broad-based and sustainable economic growth, and address key global challenges like environmental degradation, while fostering private sector development and entrepreneurship. Continued support preserves U.S. leadership at the MDBs--leadership that has greatly benefited both the MDBs and U.S. taxpayers for more than 60 years.
Treasury's Request includes funding for the concessional windows at the MDBs that support the world's poorest countries. MDB concessional facilities are an important source of financing for development needs in many of the world's most fragile and post-conflict states. The projects they support help save lives by combating extreme hunger and poverty while promoting global stability, prosperity, and private sector growth. The FY 2014 Request includes funding for the third and final installment of the sixteenth replenishment of the International Development Association (IDA) and the third and final installment of the twelfth replenishment of African Development Fund (AfDF). In addition, Treasury is requesting funding that will both meet the U.S. commitment to the first installment of the tenth replenishment of the Asian Development Fund (AsDF) and clear a portion of U.S. arrears at the AsDF, which currently total over $326 million. Treasury's Request also includes $6.3 million to clear a portion of the outstanding U.S. arrears to the Multilateral Investment Fund (MIF).
The FY 2014 Request includes $135 million for a contribution to the Global Agriculture and Food Security Program (GAFSP). Investments made by GAFSP continue to make major strides in improving agricultural development in countries seeking to reduce food insecurity. In 18 countries, smallholder farmers have seen significant increases in productivity on a per hectare basis with corresponding income gains. In Haiti, farmers have more than doubled their yields; in Bangladesh, farmers have had their first-ever surplus of rice. GAFSP is responsive to country needs and is aligned with their own home grown strategies. It fosters cooperation among donors and allocates resources based on results.
The food security budget also includes $30 million for the second of three installments for the ninth replenishment of the International Fund for Agricultural Development (IFAD), the only global development finance institution solely dedicated to improving food security for the rural poor. This request is equivalent to our annual commitment under the previous replenishment, made in 2008.
Environment and Clean Energy
The FY 2014 Request includes $427.5 million for the Global Environment Facility (GEF), the Clean Technology Fund (CTF), and three programs supported by the Strategic Climate Fund (SCF): The Pilot Program for Climate Resilience (PPCR), the Forest Investment Program (FIP), and the Program for Scaling up Renewable Energy in Low-Income Countries (SREP). FY 2014 funding for Treasury's multilateral environment and clean energy programs will spur direct action and investment by other countries to reduce their own pollution sources and advance ongoing efforts. These global actions mitigate threats to our domestic environment that increasingly originate beyond our own borders, enhancing our national security and providing opportunities for U.S. businesses, especially in clean energy.
The U.S. contribution leverages significant funding from other donors, developing country governments, development institutions, and the private sector. Each U.S. dollar contributed to the GEF, CTF, and SCF leverages four to five additional dollars from other donors and six to ten times that from other funding sources--including the private sector.
The FY 2014 Request includes $175.3 million to meet a portion of the U.S. commitment to the Multilateral Debt Relief Initiative (MDRI) at IDA and the AfDF under the current replenishment cycles. MDRI, together with associated debt relief efforts, reduced the debt burden for participating countries by about 90 percent as compared to the debt levels existing prior to entering the debt relief process. As a result, these countries have been able to increase poverty-reducing expenditures by an average of more than three percentage points of GDP over the past ten years.
Middle East and North Africa Transition Fund
The FY 2014 Request includes $5 million for the Middle East and North Africa Transition Fund, a new multi-donor trust fund administered by the World Bank. This fund was created under the U.S. chairmanship of the Group of 7 to assist Arab countries that are members of the Deauville Partnership with Arab Countries in Transition (currently Egypt, Tunisia, Jordan, Morocco, Libya, and Yemen) as they address their diverse economic challenges during their political transitions. The fund provides quick dispensation for small grants to help countries put in place economic policies and government reforms that will allow them to attract greater flows of capital. A wide range of countries have already provided or committed to provide funding, including the United Kingdom, Saudi Arabia, Canada, France, Japan, Russia, Kuwait, and Qatar.
International Monetary Fund
Treasury is seeking legislation within its FY 2014 Budget Request for the International Monetary Fund (IMF). G-20 leaders and the IMF membership reached agreement at the 2010 Seoul Summit on a set of IMF quota and governance reforms designed to enhance IMF effectiveness. The U.S. successfully achieved its negotiating priorities: (1) a U.S. quota increase with a corresponding roll back in our participation in the IMF's New Arrangements to Borrow (NAB); and, (2) preservation of U.S. veto power in the IMF.
Legislation is needed to increase the U.S. quota in the IMF by approximately $63 billion and simultaneously reduce by an equal amount U.S. participation in the NAB. This action results in no overall change in U.S. financial participation in the IMF. The legislation is also necessary to allow the U.S. to accept an amendment to the IMF Articles of Agreement facilitating changes in the composition of the IMF Executive Board while preserving the U.S. board seat.
Since its inception, the IMF has been a critical tool for the U.S. in promoting global financial stability. The IMF supports U.S. jobs, exports, and financial markets. During crises abroad, the U.S. leverages the IMF to protect our domestic economy.
As the world's largest economy, the U.S. is the only country with a veto to shape major IMF governance and resource decisions. As emerging economies play a bigger role and seek greater influence, it is critical that the U.S. maintains its influence in the global economy in the coming years. This requires ensuring the IMF remains the leading first responder with adequate quota resources and that the U.S. continues to preserve its veto power. Unless the U.S. acts now to honor its IMF commitments, we risk jeopardizing our leadership position.
Finally, the IMF is a safe and smart investment, with a rock solid balance sheet including reserves and gold holdings that exceed total IMF credit outstanding (about $140 billion). The IMF has never defaulted on any U.S. reserve claims on the IMF since its inception nearly 70 years ago.
The required authorization requests, including for mandatory funding for the IMF quota increase and NAB rollback, will be submitted separately. The proposal has an assumed enactment date in fiscal year 2013. The net cost of the proposed IMF legislation is zero, both in terms of budget authority and outlays.
Export-Import Bank of the United States ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 Export-Import Bank of the United States -799,700 -752,925 -831,600 -31,900 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
The FY 2014 Budget estimates that the Export-Import Bank of the United States (Ex-Im Bank) export credit support will total $42.7 billion in lending activity, and will be funded entirely by receipts collected from the Ex-Im Bank's customers. These receipts are expected to total $972.1 million in excess of estimated losses in FY 2014. These funds, treated as offsetting collections, will be used to pay $114.9 million for administrative expenses. The administrative expenses estimate includes funding to meet the increased demand for services; for significant improvements to outreach and business development initiatives to increase the number of small business that export; for enhancing the Bank's underwriting and monitoring capabilities; and to upgrade the Bank's antiquated systems infrastructure. The Bank forecasts a net return of $832 million to the U.S. Treasury as receipts in excess of expenses or negative subsidy. The FY 2014 request for the Ex-Im Bank includes $4.6 million for the expenses of the Inspector General.
The Ex-Im Bank is an independent, self-sustaining executive agency, and a wholly-owned U.S. Government corporation. As the official export credit agency of the United States, the mission of the Ex-Im Bank is to support U.S. exports by providing export financing through its loan, guarantee, and insurance programs. These programs are implemented in cases where the private sector is unable or unwilling to provide financing, and to ensure equitable competition in export sales between U.S. exporters and foreign exporters financed by their respective governments. By facilitating the financing of U.S. exports, Ex-Im Bank helps companies support and maintain U.S. jobs. The Ex-Im Bank actively assists small and medium sized businesses.
Overseas Private Investment Corporation ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 Overseas Private Investment Corporation -265,734 -203,573 -198,200 67,534 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
As the U.S. Government's development finance institution, the Overseas Private Investment Corporation (OPIC) is a critical development tool in fulfilling the President's national security, diplomacy and development commitments globally. OPIC mobilizes private capital and skills to help solve critical development challenges and in doing so, advances U.S. foreign policy. Because OPIC works with the U.S. private sector, it helps U.S. businesses gain footholds in emerging markets, catalyzing revenues, jobs and growth opportunities both at home and abroad. OPIC achieves its mission by providing investors with financing, guarantees, political risk insurance, and support for private equity investment funds.
OPIC's FY 2014 budget is fully self-funded and continues OPIC's thirty-five year consecutive track-record of positive contributions to the budget. From its FY 2014 estimated net offsetting collections, OPIC is requesting $71.8 million for administrative expenses and $31.0 million for credit subsidy. For every dollar of OPIC administrative resources, OPIC has historically made $151 in loans and guarantees; and in FY2014, we expect these resources will support up to $5.7 billion in new direct loans, risk insurance and loan guarantees and result in offsetting collections of over $300 million.
The requested resources, sourced from OPIC's own balances, are integral to OPIC's ability to continue to be a leading contributor to some of the most pressing policy priorities of the Administration. We anticipate that additional budget resources will be applied primarily to staff to: (a) help fill the President's and the Secretary of State's combined $3 billion pledge of OPIC support to the Middle East and North Africa; (b) meet the Administration's increased focus on development priorities in Sub-Saharan Africa, particularly in the energy and infrastructure sectors; and (c) fulfill OPIC's pledge under the recently-announced US-Asia Pacific Comprehensive Partnership For a Sustainable Energy Future.
* OPIC Delivers on U.S. Foreign Policy Priorities--OPIC plays a critical role in fulfilling the President's commitments to economic reconstruction in Iraq, Afghanistan, and Haiti, supporting the economic development of the Middle East and North Africa, and in other key initiatives such as the U.S.-Asia Pacific Comprehensive Partnership For a Sustainable Energy, the Global Climate Change Initiative, Feed the Future, and the Partnership for Growth.
* OPIC is Key Contributor of the USG response to Renewable Energy and Climate Change in Emerging Markets -OPIC's annual commitments to renewable energy projects grew ten-fold in three years to over $1 billion, and accounts for approximately one-third of the U.S. Government's international climate finance commitments.
* OPIC Supports Small Businesses--Nearly two-thirds of OPIC projects last fiscal year were in support of small and medium sized enterprises, which have strong growth and employment potential.
* OPIC Operates on a Self-Sustaining Basis and Has a History of Contributing to Deficit Reduction--OPIC operates at no net cost to the American taxpayer, and has returned money to the U.S. Treasury for each of the past 35 years.
OPIC has a long history of catalyzing private sector investment which is critical to stabilizing economies following political turmoil and laying the groundwork for growth, jobs and opportunities. By balancing risks, returns and resources, OPIC generates returns to the budget, maintains itself as a fully self-sustaining Federal Corporation and has contributed to deficit reduction.
U.S. Trade and Development Agency ($ in thousands) FY 2012 FY 2013 FY 2014 Increase / Actual CR (1) Request Decrease from FY 2012 U.S. Trade and Development Agency 50,000 50,306 62,662 12,662 (1) The FY 2013 CR is based on the annualized continuing resolution calculation for FY 2013 (P.L. 112-175).
The FY 2014 request for the U.S. Trade and Development Agency (USTDA) of $62.6 million will enable the Agency to continue its mission to help U.S. companies create jobs through the export of U.S. goods and services for priority development projects in emerging economies. USTDA links U.S. businesses to export opportunities by funding project planning activities, pilot projects, and reverse trade missions that create sustainable infrastructure and economic growth in its partner countries. In carrying out its mission, USTDA places particular emphasis on activities where there is a high likelihood for the export of U.S. goods and services during project implementation.
USTDA programs have a proven record of success. In FY 2012, USTDA identified over $2.2 billion in exports that were attributable to its activities. During the most recent ten-year evaluations period, the Ten Year Rolling Average currently consists of all USTDA activities completed between years 2000-2009. Due to the nature of USTDA's early project planning and development funding, this interval of time is used to capture a meaningful and relevant representation of the results of USTDA's program funds. USTDA's programs have generated over $63 in U.S. exports for every program dollar obligated by the Agency.
The FY 2014 budget request represents an increase of $5 million over the Administration's FY 2013 request for USTDA. This increase will allow USTDA to fill critical project development gaps that the Agency has identified which are impeding implementation of critical infrastructure projects overseas. The additional funds will enable USTDA to offer specialized assistance to help fill these gaps for meritorious projects through: (1) advisory assistance services to create the necessary legal and regulatory infrastructure to support private sector participation in various sectors to host countries, and to assist prospective project sponsors in complying with requirements of financial institutions to help move projects to successful implementation; and (2) engineering and design studies and impact assessments necessary to bring projects to financial closure.
USTDA will continue to prioritize support for projects in emerging economies in the energy, transportation, information and communications technology, and environmental sectors where its assistance can be most impactful for U.S. companies and partner countries. Key markets USTDA will target include Brazil, China, Colombia, Ghana, India, Indonesia, Mexico, the Philippines, South Africa, Turkey, and Vietnam.
More broadly, USTDA's FY 2014 budget will support key U.S. policy objectives including, generating economic growth and jobs at home while promoting investments in "smart" development to ensure long-term sustainability in emerging economies. USTDA has a demonstrated capability to respond rapidly and effectively to U.S. foreign policy priorities that promote economic development overseas while creating export opportunities for U.S. companies. USTDA's strategic use of foreign assistance funds to support sound investment decisions in host countries creates an enabling environment for sustainable economic development.
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